Vaso (VASO) 10-K 30 Mar 16 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Mar. 25, 2016	Jun. 30, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	VASOMEDICAL, INC
Entity Central Index Key	839,087
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 17.1
Entity Common Stock, Shares Outstanding		158,441,802
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2015

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
CURRENT ASSETS
Cash and cash equivalents	$ 2,160	$ 9,128
Short-term investments	38	111
Accounts and other receivables, net of an allowance for doubtful accounts and commission adjustments of $3,863 at December 31, 2015 and $4,571 at December 31, 2014	11,620	15,273
Receivables due from related parties	209	21
Inventories, net	1,963	1,898
Deferred commission expense	2,252	2,200
Prepaid expenses and other current assets	512	363
Total current assets	18,754	28,994
PROPERTY AND EQUIPMENT, net of accumulated depreciation of $2,976 at December 31, 2015 and $1,397 at December 31, 2014	2,888	266
GOODWILL	17,484	3,288
INTANGIBLES, net	6,977	2,826
OTHER ASSETS	4,315	5,617
Total Assets	50,418	40,991
CURRENT LIABILITIES
Accounts payable	4,037	462
Accrued commissions	2,031	2,247
Accrued expenses and other liabilities	4,511	5,583
Sales tax payable	671	247
Income taxes payable	202	44
Deferred revenue - current portion	9,480	9,882
Notes payable - current portion	1,485	163
Due to related party	33	1,039
Total current liabilities	22,450	19,667
LONG-TERM LIABILITIES
Notes payable	4,886	0
Notes payable due to related party	963	0
Deferred revenue	9,036	12,650
Deferred tax liability	112	112
Other long-term liabilities	1,230	811
Total long-term liabilities	$ 16,227	$ 13,573
COMMITMENTS AND CONTINGENCIES (NOTE R)
STOCKHOLDERS' EQUITY
Preferred stock, $.01 par value; 1,000,000 shares authorized; nil shares issued and outstanding at December 31, 2015, and December 31, 2014	$ 0	$ 0
Common stock, $.001 par value; 250,000,000 shares authorized; 168,749,889 and 166,435,370 shares issued at December 31, 2015 and December 31, 2014, respectively; 158,441,802 and 156,127,283 shares outstanding at December 31, 2015 and December 31, 2014, respectively	168	166
Additional paid-in capital	62,263	61,924
Accumulated deficit	(48,610)	(52,433)
Accumulated other comprehensive (loss) income	(80)	94
Treasury stock, at cost, 10,308,087 shares at December 31, 2015 and December 31, 2014	(2,000)	(2,000)
Total stockholders' equity	11,741	7,751
Total liabilities and stockholders' equity	$ 50,418	$ 40,991

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
CURRENT ASSETS
Accounts and other receivables, allowance for doubtful accounts and commission adjustments	$ 3,863	$ 4,571
PROPERTY AND EQUIPMENT, accumulated depreciation	$ 2,976	$ 1,397
STOCKHOLDERS' EQUITY
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	250,000,000	250,000,000
Common stock, shares issued (in shares)	168,749,889	166,435,370
Common stock, shares outstanding (in shares)	158,441,802	156,127,283
Treasury stock, at cost (in shares)	10,308,087	10,308,087

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Revenues
Professional sales services	$ 31,584	$ 30,236
Managed IT systems and services	21,149	48
Equipment sales and services	4,349	4,670
Total revenues	57,082	34,954
Cost of revenues
Cost of professional sales services	7,052	7,985
Cost of managed IT systems and services	12,536	27
Cost of equipment sales and services	2,127	1,750
Total cost of revenues	21,715	9,762
Gross profit	35,367	25,192
Operating expenses
Selling, general and administrative	30,913	23,326
Research and development	515	803
Total operating expenses	31,428	24,129
Operating income	3,939	1,063
Other income (expense)
Interest and financing costs	(472)	(43)
Interest and other income, net	312	250
Loss on disposal of fixed assets	0	(15)
Total other income (expense), net	(160)	192
Income before income taxes	3,779	1,255
Income tax benefit (expense)	44	(127)
Net income	3,823	1,128
Other comprehensive income
Foreign currency translation loss	(174)	(14)
Comprehensive income	$ 3,649	$ 1,114
Income per common share
- basic (in dollars per share)	$ 0.02	$ 0.01
- diluted (in dollars per share)	$ 0.02	$ 0.01
Weighted average common shares outstanding
- basic (in shares)	156,707	155,362
- diluted (in shares)	157,189	156,032

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Common Stock [Member]	Treasury Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Income [Member]	Total
Balance at Dec. 31, 2013	$ 165	$ (1,755)	$ 61,508	$ (53,561)	$ 108	$ 6,465
Balance (in shares) at Dec. 31, 2013	164,705	(9,481)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Repurchase of shares	$ 0	$ (245)	0	0	0	(245)
Repurchase of shares (in shares)		(827)
Share-based compensation	$ 1		389	0	0	390
Share-based compensation (in shares)	1,280
Shares not issued for employee tax liability	$ 0		(9)	0	0	(9)
Exercise of stock options	$ 0	$ 0	36	0	0	36
Exercise of stock options (in shares)	450
Foreign currency translation loss	$ 0		0	0	(14)	(14)
Net income	0		0	1,128	0	1,128
Balance at Dec. 31, 2014	$ 166	$ (2,000)	61,924	(52,433)	94	7,751
Balance (in shares) at Dec. 31, 2014	166,435	(10,308)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation	$ 2	$ 0	340	0	0	342
Share-based compensation (in shares)	2,315
Shares not issued for employee tax liability	$ 0	0	(1)	0	0	(1)
Foreign currency translation loss	0	0	0	0	(174)	(174)
Net income	0	0	0	3,823	0	3,823
Balance at Dec. 31, 2015	$ 168	$ (2,000)	$ 62,263	$ (48,610)	$ (80)	$ 11,741
Balance (in shares) at Dec. 31, 2015	168,750	(10,308)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities
Net income	$ 3,823	$ 1,128
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	1,540	467
Deferred income taxes	(334)	0
Loss on disposal of fixed assets	0	15
Provision for doubtful accounts and commission adjustments	102	(40)
Amortization of debt issue costs	19	0
Share-based compensation and arrangements	342	390
Changes in operating assets and liabilities:
Accounts and other receivables	4,977	(1,671)
Receivables due from related parties	(178)	0
Inventories, net	(201)	(294)
Deferred commission expense	(51)	112
Other current assets	20	(25)
Other assets	1,793	(2,505)
Accounts payable	347	(135)
Accrued commissions	(263)	86
Accrued expenses and other liabilities	(1,401)	18
Sales tax payable	7	18
Income taxes payable	158	44
Deferred revenue	(4,016)	4,513
Notes payable due to related party	(24)	20
Other long-term liabilities	(140)	453
Net cash provided by operating activities	6,520	2,594
Cash flows from investing activities
Purchases of equipment and software	(893)	(389)
Sale of fixed assets	0	24
Purchases of short-term investments	(38)	(111)
Redemption of short-term investments	40	111
Acquisition of Genwell	0	(1,136)
Cash acquired through purchase of Genwell	0	113
Acquisition of Netwolves	(18,000)	0
Cash acquired through purchase of Netwolves	733	0
Investment in VSK	(100)	0
Net cash used in investing activities	(18,258)	(1,388)
Cash flows from financing activities
Net borrowings on revolving line of credit	47	0
Proceeds from exercise of stock options	0	36
Repurchase of common stock	0	(245)
Repayment of notes payable	(146)	0
Proceeds from note payable	4,800	163
Net cash provided by (used in) financing activities	4,701	(46)
Effect of exchange rate differences on cash and cash equivalents	69	7
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(6,968)	1,167
Cash and cash equivalents - beginning of year	9,128	7,961
Cash and cash equivalents - end of year	2,160	9,128
SUPPLEMENTAL DISCLOSURE OF CASH INFORMATION
Interest paid	196	1
Income taxes paid	130	48
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING
Inventories transferred to property and equipment, attributable to operating leases, net	102	6
Note issued for acquisition	0	1,017
Debt issuance cost in accrued expenses	130	0
Fair value of assets acquired	23,350	2,038
Fair value of liabilities assumed	$ 6,083	$ 0

DESCRIPTION OF BUSINESS

DESCRIPTION OF BUSINESS	12 Months Ended
	Dec. 31, 2015
DESCRIPTION OF BUSINESS [Abstract]
DESCRIPTION OF BUSINESS	NOTE A – DESCRIPTION OF BUSINESS Vasomedical, Inc. was incorporated in Delaware in July 1987. ® Unless the context requires otherwise, all references to “we”, “our”, “us”, “Company”, “registrant”, “Vasomedical” or “management” refer to Vasomedical, Inc. and its subsidiaries. Overview Vasomedical, Inc. principally operates in three distinct business segments in the healthcare equipment and information technology industries. We manage and evaluate our operations, and report our financial results, through these three business segments. · IT segment, operating through a wholly-owned subsidiary VasoTechnology, Inc., primarily focuses on healthcare IT and managed network technology services; · Professional sales service segment, operating through a wholly-owned subsidiary Vaso Diagnostics, Inc. d/b/a VasoHealthcare, primarily focuses on the sale of healthcare capital equipment for large OEMs into the health provider middle market; and · Equipment segment, operating through wholly-owned subsidiaries Vasomedical Global Corp. and Vasomedical Solutions, Inc., primarily focuses on the design, manufacture, sale and service of proprietary medical devices. VasoTechnology VasoTechnology, Inc. all of the assets of NetWolves, LLC and its affiliates, including the membership interests in NetWolves Network Services, LLC (collectively, “NetWolves”) In June 2014, the Company began its IT segment business by executing the Value Added Reseller Agreement (“VAR Agreement”) with GEHC to become a national value added reseller of GE Healthcare IT’s Radiology PACS (Picture Archiving and Communication System) software solutions and related services, including implementation, management and support. This multiyear VAR Agreement focuses primarily on existing customer segments currently served by VasoHealthcare on behalf of GEHC. A new wholly owned subsidiary, VasoHealthcare IT Corp. (“VHC IT”), was formed to conduct the healthcare IT business. In May 2015, the Company further expanded its IT segment business by acquiring NetWolves. NetWolves designs and delivers multi-network and multi-technology solutions as a managed network provider, and provides a complete single-source solution that includes design, network redundancy, application device management, real-time network monitoring, reporting and support systems as a comprehensive solution. VasoHealthcare In May 2010, the Company launched its Professional Sales Service business through a wholly-owned subsidiary Vaso Diagnostics, Inc. d/b/a VasoHealthcare, which was appointed the exclusive representative for the sale of select General Electric Company (“GE”) diagnostic imaging equipment to specific market segments in the 48 contiguous states of the United States and the District of Columbia. The original agreement (“GEHC Agreement”) was for three years ending June 30, 2013; in 2012 it was extended to June 30, 2015 and again in 2014 to December 31, 2018, subject to earlier termination under certain circumstances Vasomedical Global and Vasomedical Solutions Vasomedical Global was formed in 2011 to combine and coordinate the various design, development manufacturing, and sales operations of medical devices acquired by the Company. The Company’s Equipment business also has been significantly expanded from the original EECP ® In August 2014, the Company acquired all of the outstanding shares of Genwell Instruments Co. Ltd. (“Genwell”), located in Wuxi, China, through its wholly owned subsidiary Wuxi Gentone Instruments Co. Ltd. (“Gentone”). Genwell was formed in China in 2010 with the assistance of a government grant to develop the MobiCare™ wireless multi-parameter patient monitoring system and holds intellectual property rights for this system. In April 2014, the Company entered into an agreement with Chongqing PSK-Health Sci-Tech Development Co., Ltd. (“PSK”) of Chongqing, China, the leading manufacturer of external counter pulsation, or ECP, therapy systems in China, to form a joint venture company, VSK Medical Limited (“VSK”), a Cayman Islands company, for the global marketing, sale and advancement of ECP therapy technology. The Company owns 49.9% of VSK, which commenced operations in January 2015.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A summary of the significant accounting policies consistently applied in the preparation of the consolidated financial statements are as follows: Principles of Consolidation The consolidated financial statements include the accounts of Vasomedical, Inc., its wholly-owned subsidiaries, and variable interest entities where the Company is the primary beneficiary. Significant intercompany accounts and transactions have been eliminated. The Company’s minority interest in the VSK joint venture is accounted for using the equity method of accounting and is included in other assets on the consolidated balance sheet. Variable Interest Entity Basic Information The Company follows the guidance of accounting for variable interest entities, which requires certain variable interest entities to be consolidated by the primary beneficiary of the entities. Biox is a Variable Interest Entity (VIE). Laws and regulations of the Peoples Republic of China (“PRC”) prohibit or restrict companies with foreign ownership from certain activities and benefits including eligibility for certain government grants and certain rebates related to commercial activities. To provide the Company the expected residual returns of the VIE, the Company, through its subsidiary Gentone, entered into a series of contractual arrangements with Biox and its registered shareholders to enable the Company, to: · exercise effective control over the VIE; · receive substantially all of the economic benefits and residual returns, and absorb substantially all the risks of the VIE as if they were their sole shareholders; and · have an exclusive option to purchase all of the equity interests in the VIE. The Company’s management evaluated the relationships between the Company and Biox, and the economic benefits flow of the applicable contractual arrangements. The Company concluded that it is the primary beneficiary of Biox. As a result, the results of operations, assets and liabilities of Biox have been included in the Company’s consolidated financial statements. The significant agreements through which the Company exercises effective control over Biox are: · the Exclusive Technical Consulting Services Agreement between Biox and Gentone; · the Option Agreement on Purchase of the Equity Interest executed by and among the shareholders of Biox and Gentone; · the Equity Pledge Agreement executed by and among the shareholders of Biox and Gentone; and · the Powers of Attorney issued by the shareholders of Biox. Financial Information of VIE Liabilities recognized as a result of consolidating this VIE do not represent additional claims on the Company’s general assets. VIE assets can be used to settle the obligations of the primary beneficiary. The financial information of Biox, which was included in the accompanying consolidated financial statements, is presented as follows: (in thousands) As of December 31, 2015 As of December 31, 2014 Cash and cash equivalents $ 104 $ 159 Total assets $ 1,168 $ 1,047 Total liabilities $ 1,007 $ 878 (in thousands) Year ended December 31, 2015 2014 Total net revenue $ 1,715 $ 1,744 Net loss $ (35 ) $ (373 ) Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Significant estimates and assumptions relate to estimates of collectibility of accounts receivable, the realizability of deferred tax assets, stock-based compensation, values and lives assigned to acquired intangible assets, the adequacy of inventory and warranty reserves, and allocation of fair value among the elements of the multi-deliverable arrangements. Additionally, significant estimates and assumptions impact the Company’s accounting relative to its business combination. Actual results could differ from those estimates. Revenue and Expense Recognition for the Professional Sales Service Segment The Company recognizes commission revenue in its professional sales service segment (see Note C) when persuasive evidence of an arrangement exists, service has been rendered, the price is fixed or determinable and collectability is reasonably assured. These conditions are deemed to be met when the underlying equipment has been delivered and accepted at the customer site in accordance with the specific terms of the sales agreement. Consequently, amounts billable under the agreement with GE Healthcare in advance of the customer acceptance of the equipment are recorded as accounts receivable and deferred revenue in the Consolidated Balance Sheets. Similarly, commissions payable to our sales force related to such billings are recorded as deferred commission expense when the associated deferred revenue is recorded. Commission expense is recognized when the corresponding commission revenue is recognized Revenue and Expense Recognition for the IT Segment The Company currently derives its revenues in the IT segment from two sources: (1) telecommunication and managed network services, which are comprised primarily of fixed monthly fees and variable usage charges; and (2) the resale to diagnostic imaging service providers of GEHC’s PACS software solutions, which is comprised of software from GEHC and other vendors, hardware, related solution implementation services, and post-implementation customer support (“PCS”). We offer our customers the option to purchase our software solutions or to subscribe our solutions under a monthly Software as a Service (“SaaS”) fee basis. Customers that purchase our software solutions may elect to purchase PCS, comprised of software license updates and product support contracts, which provide our customers with rights to unspecified product upgrades and maintenance releases issued during the support period, as well as technical support assistance and remote network monitoring. Revenue Recognition for Multiple-Element Arrangements - Arrangements with Software and Non-software Elements We enter into multiple-element arrangements that may include a combination of our various software related and non-software related products and services offerings including new software licenses, hardware, implementation services, PCS and monthly subscription-based SaaS solutions. In such arrangements, we first allocate the total arrangement consideration based on the relative selling prices of the software group of elements as a whole and to the nonsoftware elements. We then further allocate consideration within the software group to the respective elements within that group following the guidance in ASC 985-605, “Software-Revenue Recognition” and allocate consideration within the nonsoftware group to the respective elements within that group following the guidance in ASC 605-25, “Revenue Recognition, Multiple-Element Arrangements”. After the arrangement consideration has been allocated to the elements, we account for each respective element in the arrangement as described below. Revenue Recognition for Multiple-Element Arrangements - Software Products and Software Related Services (Software Arrangements) We enter into arrangements with customers that purchase both software related products and software related services from us at the same time, or within close proximity of one another (referred to as software related multiple-element arrangements). Such software related multiple-element arrangements include the sale of our software products, implementation services, and PCS, whereby software license delivery is followed by the subsequent or contemporaneous delivery of the other elements. For those software related multiple-element arrangements, we have applied the residual method to determine the amount of new software license revenues to be recognized pursuant to ASC 985-605. Under the residual method, if fair value exists for undelivered elements in a multiple-element arrangement, such fair value of the undelivered elements is deferred with the remaining portion of the arrangement consideration generally recognized upon delivery of the software license. We allocate the fair value of each element of a software related multiple-element arrangement based upon its fair value as determined by our vendor specific objective evidence (“VSOE” as described further below), with any remaining amount allocated to the software license. The basis for our software license revenue recognition is substantially governed by the accounting guidance contained in ASC 985-605. We exercise judgment and use estimates in connection with the determination of the amount of software and software related services revenues to be recognized in each accounting period. We recognize new software licenses revenues when: (1) we enter into a legally binding arrangement with a customer for the license of software; (2) we deliver the products; (3) the sale price is fixed or determinable and free of contingencies or significant uncertainties; and (4) collection is probable. Revenues that are not recognized at the time of sale because the foregoing conditions are not met are recognized when those conditions are subsequently met. Our software license arrangements do not include acceptance provisions. The vast majority of our software license arrangements include PCS, which is ordered at the customer’s option and is recognized ratably over the term of the arrangement, typically three to five years. PCS provides customers with rights to unspecified software product upgrades, maintenance releases and patches released during the term of the support period, as well as remote network monitoring and technical support. PCS is generally priced as a percentage of the net new software licenses fees. Revenue Recognition for Multiple-Element Arrangements – SaaS, Hardware and Implementation Services (Non-software Arrangements) We enter into arrangements with customers that purchase multiple non-software related products and services from us within close proximity of one another (referred to as nonsoftware multiple-element arrangements). Each element within a non-software multiple-element arrangement is accounted for as a separate unit of accounting provided the services have value to the customer on a standalone basis. We consider a deliverable to have standalone value if the service is sold separately by us or another vendor or could be resold by the customer. For our non-software multiple-element arrangements, we allocate revenue to each element based on a selling price hierarchy at the arrangement’s inception. The selling price for each element is based upon the following selling price hierarchy: VSOE if available, third party evidence (“TPE”) if VSOE is not available, or estimated selling price (“ESP”) if neither VSOE nor TPE are available. When possible, we establish VSOE of selling price for deliverables in software and non-software multiple-element arrangements using the price charged for a deliverable when sold separately. TPE is established by evaluating similar and interchangeable competitor products or services in standalone arrangements with similarly situated customers. If we are unable to determine the selling price because VSOE or TPE does not exist, we determine ESP for the purposes of allocating the arrangement by reviewing several other external and internal factors including, but not limited to: historical transactions; pricing practices including discounting; and competition. The determination of ESP is made through consultation with and approval by our management, taking into consideration our pricing model and go-to-market strategy. As these strategies evolve, we may modify our pricing practices in the future, which could result in changes to our determination of VSOE, TPE and ESP. As a result, our future revenue recognition for multiple-element arrangements could differ materially from our results in the current period. Our revenue recognition policy for non-software deliverables including SaaS and implementation services is based upon the accounting guidance contained in ASC 605-25 and we exercise judgment and use estimates in connection with the determination of the amount of SaaS and implementation service revenues to be recognized in each accounting period. Revenues from the sales of our non-software elements are recognized when: (1) persuasive evidence of an arrangement exists; (2) we perform the services or deliver the product; (3) the sale price is fixed or determinable; and (4) collection is reasonably assured. Revenues that are not recognized at the time of sale because the foregoing conditions are not met are recognized when those conditions are subsequently met. Our arrangements are documented in a written contract signed by the customer, are non-cancelable, do not contain refund-type provisions, and do not include acceptance provisions. Our SaaS offerings provide deployment of our software and hardware and related IT monitoring infrastructure including PCS for a stated term that is hosted at our data center facilities or physically on-premises at customer facilities for a monthly subscription fee. Revenues for these SaaS offerings are generally recognized ratably over the contract term commencing with the date the service is made available to customers and all other revenue recognition criteria have been satisfied. The Company recognizes revenue for hardware upon delivery and for implementation services rendered when related milestones are complete. Revenue and Expense Recognition for the Equipment Segment In the United States, we recognize revenue from the sale of our medical equipment in the period in which we deliver the product to the customer. Revenue from the sale of our medical equipment to international markets is recognized upon shipment of the product to a common carrier, as are supplies, accessories and spare parts delivered to both domestic and international customers. In most cases, revenue from domestic EECP ® ® ® Each of these elements represent individual units of accounting as the delivered item has value to a customer on a stand-alone basis, objective and reliable evidence of fair value exists for undelivered items, and arrangements normally do not contain a general right of return relative to the delivered item. We determine fair value based on the price of the deliverable when it is sold separately, or based on third-party evidence, or based on estimated selling price. Assuming all other criteria for revenue recognition have been met, we recognize equipment sales and services revenue for: (1) EECP ® The Company also recognizes revenue generated from servicing EECP ® ® Shipping and Handling Costs All shipping and handling expenses are charged to cost of sales. Amounts billed to customers related to shipping and handling costs are included as a component of sales. Research and Development Research and development costs attributable to development are expensed as incurred. Included in research and development costs is amortization expense related to the capitalized cost of EECP ® Share-Based Compensation The Company complies with ASC Topic 718, “Compensation – Stock Compensation” (“ASC 718”), which requires all companies to recognize the cost of services received in exchange for equity instruments, to be recognized in the financial statements based on their fair values. For purposes of estimating the fair value of each option on the date of grant, the Company utilizes the Black-Scholes option-pricing model. Equity instruments issued to non-employees in exchange for goods, fees and services are accounted for under the fair value-based method of ASC Topic 505, “Equity” (“ASC 505”). During the year ended December 31, 2015, the Company granted 1,592,500 restricted shares of common stock valued at $270,700 to non-officer employees, vesting over the four year period ending June 2019; 2,000,000 restricted shares of common stock valued at $367,000 to officers, of which 1,000,000 shares vested immediately with the remainder vesting over the four year period ending June 2019; and 150,000 restricted shares of common stock valued at $30,000 to a director, which vested immediately. The total fair value of shares vested during the year ended December 31, 2015 was $277,000 for employees. During the year ended December 31, 2014, the Company granted 230,000 restricted shares of common stock valued at $49,100 to non-officer employees, vesting at various periods through September 2017; 450,000 restricted shares of common stock valued at $157,500 to officers, vesting at various periods through February 2016; and 500,000 restricted shares of common stock valued at $175,000 to directors, which vested immediately. The total fair value of shares vested during the year ended December 31, 2014 was $376,000 for employees. The Company did not grant any stock options during the years ended December 31, 2015 or 2014. The intrinsic value of options exercised during the years ended December 31, 2015 and 2014 was $0 and $58,500, respectively. Share-based compensation expense recognized for the years ended December 31, 2015 and 2014 was $342,000 and $390,000, respectively. Unrecognized expense related to existing share-based compensation and arrangements is approximately $402,000 at December 31, 2015 and will be recognized over a period of approximately 3.5 years. Cash and Cash Equivalents Cash and cash equivalents represent cash and short-term, highly liquid investments either in certificates of deposit, treasury bills, money market funds, or investment grade commercial paper issued by major corporations and financial institutions that generally have maturities of three months or less from the date of acquisition. Dividend and interest income are recognized when earned. The cost of securities sold is calculated using the specific identification method. Short-Term Investments The Company’s short-term investments consist of certificates of deposit with original maturities greater than three months and up to one year. Accounts Receivable, net The Company’s accounts receivable are due from customers to whom we sell our products and services, distributors engaged in the distribution of our products and from GEHC. Credit is extended based on evaluation of a customer’s financial condition and, generally, collateral is not required. Accounts receivable are generally due 30 to 90 days from shipment and services provided and are stated at amounts due from customers net of allowances for doubtful accounts, returns, term discounts and other allowances. Accounts that are outstanding longer than the contractual payment terms are considered past due. Estimates are used in determining the allowance for doubtful accounts based on the Company’s historical collections experience, current trends, credit policy and a percentage of its accounts receivable by aging category. In determining these percentages, the Company reviews historical write-offs of their receivables. The Company also looks at the credit quality of their customer base as well as changes in their credit policies. The Company continuously monitors collections and payments from our customers, and writes off receivables when all efforts at collection have been exhausted. While credit losses have historically been within expectations and the provisions established, the Company cannot guarantee that it will continue to experience the same credit loss rates that they have in the past. The changes in the Company’s allowance for doubtful accounts and commission adjustments are as follows: (in thousands) For the year ended December 31, 2015 For the year ended December 31, 2014 Beginning Balance $ 4,571 $ 3,764 Provision for losses on accounts receivable 140 11 Direct write-offs, net of recoveries (48 ) (156 ) Commission adjustments (800 ) 952 Ending Balance $ 3,863 $ 4,571 Concentrations of Credit Risk We market our equipment and IT software solutions principally to hospitals, diagnostic imaging centers and physician private practices. We perform credit evaluations of our customers’ financial condition and, as a result, believe that our receivable credit risk exposure is limited. For the years ended December 31, 2015 and 2014, no customer in our equipment or IT segment accounted for 10% or more of revenues or accounts receivable. In our professional sales service segment, 100% of our revenues and accounts receivable are with GEHC; however, we believe this risk is acceptable based on GEHC’s financial position. The Company maintains cash balances in certain U.S. financial institutions, which, at times, may exceed the Federal Depository Insurance Corporation (“FDIC”) coverage of $250,000. The Company has not experienced any losses on these accounts and believes it is not subject to any significant credit risk on these accounts. In addition, the FDIC does not insure the Company’s foreign bank balances, which aggregated approximately $317,000 and $410,000 at December 31, 2015 and 2014, respectively. Inventories, net The Company values inventory at the lower of cost or estimated market, with cost being determined on a first-in, first-out basis. The Company often places EECP ® ® ® We comply with the provisions of ASC Topic 330 “Inventory”. The statement clarifies that abnormal amounts of idle facility expense, freight, handling costs, and wasted materials (spoilage) should be recognized as current-period charges and requires the allocation of fixed production overhead to inventory based on the normal capacity of the production facilities. Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Major improvements are capitalized and minor replacements, maintenance and repairs are charged to expense as incurred. Upon retirement or disposal of assets, the cost and related accumulated depreciation are removed from the consolidated balance sheets. Depreciation is expensed over the estimated useful lives of the assets, which range from two to eight years, on a straight-line basis. Accelerated methods of depreciation are used for tax purposes. We amortize leasehold improvements over the useful life of the related leasehold improvement or the life of the related lease, whichever is less. Goodwill and Intangible Assets Goodwill represents the excess of cost over the fair value of net assets of businesses acquired. The Company accounts for goodwill under the guidance of the ASC Topic 350, “Intangibles: Goodwill and Other”. Goodwill acquired in a purchase business combination and determined to have an indefinite useful life is not amortized, but instead tested for impairment, at least annually, in accordance with this guidance. The recoverability of goodwill is subject to an annual impairment test or whenever an event occurs or circumstances change that would more likely than not result in an impairment. I ntangible assets consist of the value of customer contracts and relationships, patent and technology costs, and software. The cost of significant customer-related intangibles is amortized in proportion to estimated total related revenue; cost of other intangible assets is generally amortized on a straight-line basis over the asset's estimated economic life, which range from five to ten years. T he Company capitalizes internal use software development costs incurred during the application development stage. Costs related to preliminary project activities, training, data conversion, and post implementation activities are expensed as incurred. In 2015 the Company capitalized $5,031,000 of cost related to customer contracts and relationships, and $14,375,000 in goodwill, resulting from the NetWolves acquisition. The Company capitalized $220,000 and $263,000 in software development costs for the years ended December 31, 2015 and 2014, respectively. Impairment of Long-lived Assets The Company reviews the recoverability of all long-lived assets, including the related useful lives, whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset might not be recoverable. If required, the Company compares the estimated fair value determined by either the undiscounted future net cash flows or appraised value to the related asset’s carrying value to determine whether there has been an impairment. If an asset is considered impaired, the asset is written down to fair value, which is based either on discounted cash flows or appraised values in the period the impairment becomes known. No assets were determined to be impaired as of December 31, 2015 and 2014. Deferred Revenue Amounts billable under the agreement with GEHC in advance of customer acceptance of the equipment are recorded initially as deferred revenue, and commission revenue is subsequently recognized as customer acceptance of such equipment is reported to us by GEHC. We record revenue on extended service contracts ratably over the term of the related service contracts. Under the provisions of ASC 605, we began to defer revenue related to EECP ® Income Taxes Deferred income taxes are recognized for temporary differences between financial statement and income tax bases of assets and liabilities and loss carry-forwards for which income tax benefits are expected to be realized in future years. A valuation allowance is established, when necessary, to reduce deferred tax assets to the amount expected to be realized. In estimating future tax consequences, we generally consider all expected future events other than an enactment of changes in the tax laws or rates. Deferred tax assets are continually evaluated for the expected realization. To the extent our judgment regarding the realization of the deferred tax assets changes, an adjustment to the allowance is recorded, with an offsetting increase or decrease, as appropriate, in income tax expense. Such adjustments are recorded in the period in which our estimate as to the realization of the assets changed that it is “more likely than not” that all of the deferred tax assets will be realized. The “realization” standard is subjective and is based upon our estimate of a greater than 50% probability that the deferred tax asset can be realized. The Company early adopted The Company also complies with the provisions of ASC Topic 740, “Income Taxes”, which prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by the relevant taxing authority based on the technical merits. The tax benefit recognized is measured as the largest amount of benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement with the relevant taxing authority. Derecognition of a tax benefit previously recognized results in the Company recording a tax liability that reduces ending retained earnings. Based on its analysis, the Company has determined that it has not incurred any liability for unrecognized tax benefits as of December 31, 2015 and December 31, 2014. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. No amounts were accrued for the payment of interest and penalties at December 31, 2015 and December 31, 2014. Generally, the Company is no longer subject to income tax examinations by major domestic taxing authorities for years before 2012. According to the China tax regulatory framework, there is no statute of limitations on examination of tax filings by tax authorities. However, the general practice is going back five years. Management is currently unaware of any issues under review that could result in significant payments, accruals or material deviations from its position. Foreign Currency Translation Loss and Comprehensive Income In countries in which the Company operates, and the functional currency is other than the U.S. dollar, assets and liabilities are translated using published exchange rates in effect at the consolidated balance sheet date. Equity accounts are translated at historical rates except for the changes in retained earnings during the year as the result of the income statement translation process. Revenues and expenses and cash flows are translated using a weighted average exchange rate for the period. Resulting translation adjustments are recorded as a component of accumulated other comprehensive (loss) income on the accompanying consolidated balance sheet. For the years ended December 31, 2015 and 2014, other comprehensive (loss) income includes losses of $174,000 and $14,000, respectively, which were entirely from foreign currency translation. Fair Value of Financial Instruments The Company complies with the provisions of ASC 820 “Fair Value Measurements and Disclosures” (“ASC 820”). Under ASC 820, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. In determining fair value, the Company uses various valuation approaches. ASC 820 establishes a fair value hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs reflect the Company’s assumptions about the inputs market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The fair value hierarchy is categorized into three levels based on the inputs as follows: Level 1 Level 2 Level 3 - The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to the short-term maturities of the instruments. Net Income Per Common Share Basic income per common share is based on the weighted average number of common shares outstanding without consideration of potential common stock. Diluted earnings per common share is based on the weighted average number of common and potential dilutive common shares outstanding. Diluted earnings per share were computed based on the weighted average number of shares outstanding plus all potentially dilutive common shares. A reconciliation of basic to diluted shares used in the earnings per share calculation is as follows: (in thousands) Year ended December 31, 2015 2014 Basic weighted average shares outstanding 156,707 155,362 Dilutive effect of options and unvested restricted shares 482 670 Diluted weighted average shares outstanding 157,189 156,032 The following table represents common stock equivalents that were excluded from the computation of diluted earnings per share for the years ended December 31, 2015 and 2014, because the effect of their inclusion would be anti-dilutive. (in thousands) For the year ended December 31, 2015 December 31, 2014 Stock options 300 52 Reclassifications Certain reclassifications have been made to prior year amounts to conform with the current year presentation. Recently Issued Accounting Pronouncements The Company continually assesses any new accounting pronouncements to determine their applicability to the Company. Where it is determined that a new accounting pronouncement affects the Company’s financial reporting, the Company undertakes a study to determine the consequence of the change to its financial statements and assures that there are proper controls in place to ascertain that the Company’s consolidated financial statements properly reflect the change. New pronouncements assessed by the Company recently are discussed below: In May 2014, the FASB issued ASU 2014-09 “Revenue from Contracts with Customers”, a comprehensive new revenue recognition standard which will supersede previous existing revenue recognition guidance. The standard creates a five-step model for revenue recognition that requires companies to exercise judgment when considering contract terms and relevant facts and circumstances. The five-step model includes (1) identifying the contract, (2) identifying the separate performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations and (5) recognizing revenue wh

SEGMENT REPORTING

SEGMENT REPORTING	12 Months Ended
	Dec. 31, 2015
SEGMENT REPORTING [Abstract]
SEGMENT REPORTING	NOTE C – SEGMENT REPORTING The Company views its business in three segments – the professional sales service segment, the equipment segment, and the IT segment. The professional sales service segment operates through the Vaso Diagnostics subsidiary and is currently engaged solely in the fulfillment of the Company’s responsibilities under our agreement with GEHC. The IT segment includes the operations of NetWolves and VasoHealthcare IT Corp. Operations in the IT segment began in the third quarter of 2014. The equipment segment is engaged in designing, manufacturing, marketing and supporting EECP ® The chief operating decision maker is the Company’s Chief Executive Officer, who, in conjunction with upper management, evaluates segment performance based on operating income and Adjusted EBITDA Administrative functions such as finance, human resources, and information technology are centralized and related expenses allocated to each segment. Other costs not directly attributable to operating segments, such as audit, legal, director fees, investor relations, and others, as well as certain assets – primarily cash balances – are reported in the Corporate entity below. There are no intersegment revenues. Summary financial information for the segments is set forth below: (in thousands) As of or for the year ended December 31, 2015 Professional Sales Service Segment IT Segment Equipment Segment Corporate Consolidated Revenues from external customers $ 31,584 $ 21,149 $ 4,349 $ - $ 57,082 Operating income (loss) $ 10,024 $ (1,930 ) $ (2,444 ) $ (1,711 ) $ 3,939 Total assets $ 13,854 $ 25,278 $ 8,735 $ 2,551 $ 50,418 Accounts and other receivables, net $ 8,249 $ 2,546 $ 825 $ - $ 11,620 Deferred commission expense $ 2,121 $ 131 $ - $ - $ 2,252 Other assets $ 2,983 $ 296 $ 592 $ 444 $ 4,315 As of or for the year ended December 31, 2014 Professional Sales Service Segment IT Segment Equipment Segment Corporate Consolidated Revenues from external customers $ 30,236 $ 48 $ 4,670 $ - $ 34,954 Operating income (loss) $ 5,997 $ (539 ) $ (2,828 ) $ (1,567 ) $ 1,063 Total assets $ 21,966 $ 61 $ 10,012 $ 8,952 $ 40,991 Accounts and other receivables, net $ 14,306 $ 52 $ 915 $ - $ 15,273 Deferred commission expense $ 2,200 $ - $ - $ - $ 2,200 Other assets $ 4,888 $ - $ 716 $ 13 $ 5,617 For the years ended December 31, 2015 and 2014, GEHC accounted for 55% and 87% of revenue, respectively. Also, GEHC accounted for $8.1 million, or 69%, and $14.2 million, or 93%, of accounts and other receivables at December 31, 2015 and December 31, 2014, respectively. Our revenues were derived from the following geographic areas: (in thousands) For the year ended December 31, 2015 For the year ended December 31, 2014 Domestic (United States) $ 53,860 $ 32,905 Non-domestic (foreign) 3,222 2,049 $ 57,082 $ 34,954

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	12 Months Ended
	Dec. 31, 2015
FAIR VALUE MEASUREMENTS [Abstract]
FAIR VALUE MEASUREMENTS	NOTE D – FAIR VALUE MEASUREMENTS The Company’s assets recorded at fair value have been categorized based upon a fair value hierarchy in accordance with ASC 820. The following table presents information about the Company’s assets and liabilities measured at fair value as of December 31, 2015: (in thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance as of December 31, 2015 Assets Cash equivalents invested in money market funds (included in cash and cash equivalents) $ 2 $ - $ - $ 2 The following table presents information about the Company’s assets measured at fair value as of December 31, 2014: (in thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance as of December 31, 2014 Assets Cash equivalents invested in money market funds (included in cash and cash equivalents) $ 8,149 $ - $ - $ 8,149 The fair values of the Company’s cash equivalents invested in money market funds are determined through market, observable and corroborated sources.

ACCOUNTS AND OTHER RECEIVABLES

ACCOUNTS AND OTHER RECEIVABLES	12 Months Ended
	Dec. 31, 2015
ACCOUNTS AND OTHER RECEIVABLES [Abstract]
ACCOUNTS AND OTHER RECEIVABLES	NOTE E – ACCOUNTS AND OTHER RECEIVABLES The following table presents information regarding the Company’s accounts and other receivables as of December 31, 2015 and 2014: (in thousands) December 31, 2015 December 31, 2014 Trade receivables $ 15,252 $ 19,734 Due from employees 231 110 Allowance for doubtful accounts and commission adjustments (3,863 ) (4,571 ) Accounts and other receivables, net $ 11,620 $ 15,273 Trade receivables include amounts due for shipped products and services rendered. Amounts currently due under the GEHC Agreement are subject to adjustment in subsequent periods should the underlying sales order amount, upon which the receivable is based, change. Allowance for doubtful accounts and commission adjustments include estimated losses resulting from the inability of our customers to make required payments, and adjustments arising from estimated future changes in sales order amounts that may reduce the amount the Company will ultimately receive under the GEHC Agreement. Due from employees primarily reflects commission advances made to sales personnel.

INVENTORIES, NET

INVENTORIES, NET	12 Months Ended
	Dec. 31, 2015
INVENTORIES, NET [Abstract]
INVENTORIES, NET	NOTE F – INVENTORIES, NET Inventories, net of reserves, consisted of the following: (in thousands) December 31, 2015 December 31, 2014 Raw materials $ 497 $ 583 Work in process 392 679 Finished goods 1,074 636 $ 1,963 $ 1,898 At December 31, 2015 and 2014, the Company maintained reserves for slow moving inventories of $861,000 and $815,000, respectively.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
	Dec. 31, 2015
PROPERTY AND EQUIPMENT [Abstract]
PROPERTY AND EQUIPMENT	NOTE G – PROPERTY AND EQUIPMENT Property and equipment is summarized as follows: (in thousands) December 31, 2015 December 31, 2014 Office, laboratory and other equipment $ 1,586 $ 1,114 Equipment furnished for customer or clinical uses 3,992 376 Furniture and fixtures 286 173 5,864 1,663 Less: accumulated depreciation (2,976 ) (1,397 ) Property and equipment, net $ 2,888 $ 266 Depreciation expense amounted to approximately $505,000 and $187,000 for the years ended December 31, 2015 and 2014, respectively.

GOODWILL AND OTHER INTANGIBLES

GOODWILL AND OTHER INTANGIBLES	12 Months Ended
	Dec. 31, 2015
GOODWILL AND OTHER INTANGIBLES [Abstract]
GOODWILL AND OTHER INTANGIBLES	NOTE H – GOODWILL AND OTHER INTANGIBLES All goodwill at December 31, 2014 was attributable to the Equipment segment. Goodwill of $14,375,000 generated by the acquisition of NetWolves is attributable to the IT segment. The changes in the carrying amount of goodwill are as follows: (in thousands) Carrying Amount for the year ended December 31, 2015 December 31, 2014 Beginning of period $ 3,288 $ 3,303 Foreign currency translation (179 ) (15 ) Acquisition of Netwolves 14,375 - End of period $ 17,484 $ 3,288 The Company’s other intangible assets consist of capitalized customer-related intangibles, patent and technology costs, and software costs, as set forth in the following: (in thousands) December 31, 2015 December 31, 2014 Customer-related Costs $ 5,831 $ 800 Accumulated amortization (926 ) (381 ) 4,905 419 Patents and Technology Costs $ 2,423 $ 2,489 Accumulated amortization (806 ) (549 ) 1,617 1,940 Software Costs 1,182 962 Accumulated amortization (727 ) (495 ) 455 467 $ 6,977 $ 2,826 The Company owns eleven US patents including eight utility and three design patents that expire at various times through 2023, and, through our Chinese subsidiaries, fourteen invention, utility, and design patents in China expiring at various times through 2024. The Company also holds one patent for secure and remote monitoring management through its NetWolves subsidiary. Costs incurred for submitting the applications to the United States Patent and Trademark Office and other foreign authorities for these patents have been capitalized. Patent and technology costs are being amortized using the straight-line method over 10-year and 8-year lives, respectively. The Company begins amortizing patent costs once a filing receipt is received stating the patent serial number and filing date from the Patent Office or other foreign authority. The cost of significant customer-related intangibles is amortized in proportion to estimated total related revenue; cost of other customer-related intangible assets is amortized on a straight-line basis over the asset's estimated economic life of seven years Amortization expense amounted to approximately $1,035,000 and $280,000 for the years ended December 31, 2015 and 2014, respectively. Amortization of intangibles for the next five years is: (in thousands) 2016 2017 2018 2019 2020 Amortization expense $ 1,186 $ 1,084 $ 929 $ 807 $ 682

OTHER ASSETS

OTHER ASSETS	12 Months Ended
	Dec. 31, 2015
OTHER ASSETS [Abstract]
OTHER ASSETS	NOTE I – OTHER ASSETS Other assets consist of the following at December 31, 2015 and 2014: (in thousands) December 31, 2015 December 31, 2014 Deferred commission expense - noncurrent $ 2,083 $ 2,988 Trade receivables - noncurrent 1,025 2,171 Other 1,207 458 $ 4,315 $ 5,617

DEFERRED REVENUE

DEFERRED REVENUE	12 Months Ended
	Dec. 31, 2015
DEFERRED REVENUE [Abstract]
DEFERRED REVENUE	NOTE J – DEFERRED REVENUE The changes in the Company’s deferred revenues are as follows: (in thousands) For the year ended December 31, 2015 December 31, 2014 Deferred revenue at beginning of period $ 22,532 $ 18,019 Additions: Deferred extended service contracts 654 912 Deferred in-service and training 18 40 Deferred service arrangements 40 88 Deferred commission revenues 10,674 17,992 Recognized as revenue: Deferred extended service contracts (857 ) (869 ) Deferred in-service and training (15 ) (50 ) Deferred service arrangements (69 ) (96 ) Deferred commission revenues (14,461 ) (13,504 ) Deferred revenue at end of period 18,516 22,532 Less: current portion 9,480 9,882 Long-term deferred revenue at end of period $ 9,036 $ 12,650

ACCRUED EXPENSES AND OTHER LIAB

ACCRUED EXPENSES AND OTHER LIABILITIES	12 Months Ended
	Dec. 31, 2015
ACCRUED EXPENSES AND OTHER LIABILITIES [Abstract]
ACCRUED EXPENSES AND OTHER LIABILITIES	NOTE K – ACCRUED EXPENSES AND OTHER LIABILITIES Accrued expenses and other liabilities consist of the following at December 31, 2015 and 2014: (in thousands) December 31, 2015 December 31, 2014 Accrued compensation $ 1,589 $ 2,915 Accrued expenses - other 1,414 1,098 Other liabilities 1,508 1,570 $ 4,511 $ 5,583

RELATED-PARTY TRANSACTIONS

RELATED-PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2015
RELATED-PARTY TRANSACTIONS [Abstract]
RELATED-PARTY TRANSACTIONS	NOTE L – RELATED-PARTY TRANSACTIONS One of the Company’s directors, Peter Castle, was the Chief Executive Officer and President of NetWolves Network Services, LLC. Another of the Company’s directors, David Lieberman, was a director of NetWolves Network Services, LLC. Mr. Castle and Mr. Lieberman owned of record approximately 10.4% and 5.7%, respectively of the membership interests of NetWolves LLC. Mr. Lieberman may also be deemed to have owned beneficially up to an additional 13.5% of such membership interests. The Company’s board of directors negotiated the purchase price on an arm’s length basis, and both Mr. Castle and Mr. Lieberman abstained from the vote approving the Asset Purchase Agreement. The Company obtained an opinion regarding the fairness of the purchase price for the NetWolves entities from a reputable, independent third-party investment banking firm. Of the $18,000,000 purchase price paid for the acquisition, $14,200,000 was from the Company’s cash on hand and the remaining $3,800,000 was raised from the sale of a Subordinated Secured Note to MedTech. Of the $4,800,000 borrowed from MedTech at December 31, 2015, $2,200,000 was provided by six of our directors or members of their families and an additional $100,000 was provided by Joshua Markowitz prior to his joining the board of directors in June 2015. The Medtech Notes bear interest at 9% per annum. In January 2015, operations began under the VSK joint venture. The Company accounts for its investment in VSK using the equity method. At December 31, 2015, the Company had contributed $100,000 to VSK, and $189,000 was due from VSK for equipment and services the Company billed to it. VSK earned approximately $394,000 for the year ended December 31, 2015. Under the terms of the agreement, the Company’s accrues no interest in VSK’s income in the years ending December 31, 2015, 2016 and 2017 unless certain performance targets are achieved. For the year ended December 31, 2015 such targets had not been achieved. The Company expects the conditions to be met in 2016 and expects to record its share of income from VSK. David Lieberman, a practicing attorney in the State of New York, serves as Vice Chairman of the Board of Directors. He is currently a senior partner at the law firm of Beckman, Lieberman & Barandes, LLP, which performs certain legal services for the Company. Fees of approximately $304,000 and $240,000 were billed by the firm for the years ended December 31, 2015 and 2014, respectively, at which dates no amounts were outstanding. On August 6, 2014 the Company acquired all of the outstanding shares of Genwell Instruments Co. Ltd. (“Genwell”), located in Wuxi, China, through its wholly owned subsidiary Wuxi Gentone Instruments Co. Ltd. (“Gentone”) for cash and notes of Chinese Yuan RMB13,250,000 (approximately $2,151,000 at the acquisition date – see Note P). Genwell was formed in China in 2010 with the assistance of a government grant to develop the MobiCare TM wireless multi-parameter patient monitoring system and holds the patents and intellectual property rights for this system. The president of our subsidiary Life Enhancement Technologies Ltd. and the president and then vice-president of Biox Instruments Co. Ltd. collectively owned 80.9% of Genwell at the time of acquisition. The President and CEO of the Company was appointed the nominee Chairman of Genwell at its formation for the sole purpose of applying for the government grant available only to overseas Chinese persons. He has never received any compensation from Genwell nor held any ownership interest in Genwell. The Company has received a fairness opinion for this transaction from an independent certified appraisal firm and a legal opinion from Chinese counsel. $20,000 and $21,000 in advances was due from officers of Biox at December 31, 2015 and 2014, respectively. $3,000 in unsecured loans was payable to the president of LET at December 31, 2015 and 2014. These advances and loans are due on demand and do not bear interest.

DEBT

DEBT	12 Months Ended
	Dec. 31, 2015
DEBT [Abstract]
DEBT	NOTE M – DEBT Debt consists of the following: (in thousands) December 31, 2015 December 31, 2014 Line of Credit $ 1,076 $ - Unsecured term loan 154 163 Notes Payable - DFS 452 - Notes Payable - MedTech (net of $111,000 in debt issue costs) 4,689 - Notes Payable - related parties 963 1,018 Subtotal 7,334 1,181 Less: current portion (1,485 ) (1,181 ) $ 5,849 $ - Line of Credit In July 2015, NetWolves’ lending institution extended its $2.0 million line of credit and increased the maximum borrowings to $3.0 million. Advances under the line, which expires on August 26, 2016, bear interest at a rate of LIBOR plus 2.25% (aggregating 2.68% at December 31, 2015) and are secured by substantially all of the assets of NetWolves Network Services, LLC and guaranteed by Vasomedical, Inc. At December 31, 2015, the Company had drawn approximately $1.1 million against the line. Unsecured Term Loan In November 2014, Biox entered into an unsecured term loan of Chinese Yuan RMB1,000,000 (approximately $163,000) with a Chinese bank. The loan term was one year and bore interest at 6.72%, payable monthly. In November 2015, Biox extended the loan for an additional year maturing on November 30, 2016 with interest at 5.22% per year. Notes Payable The Company financed certain NetWolves equipment purchases through notes payable to Dell Financial Services (“DFS”). The notes, which are secured by the financed equipment, bear interest at a fixed rate of 6.55% per annum and are payable in 36 monthly installments. On May 29, 2015, the Company entered into a Note Purchase Agreement with MedTech pursuant to which it issued MedTech a secured subordinated promissory note (“Note”) for $3,800,000 for the purchase of NetWolves. MedTech was formed to acquire the Note, and $1,950,000 of the aggregate funds used to acquire the Note was provided by six of our directors. In June 2015, a second Note for $750,000 was issued to MedTech for working capital purposes, of which $250,000 was provided by a director and a director’s relative. In July 2015, an additional $250,000 was borrowed under the Note Purchase Agreement. The Notes bear interest at an annual rate of 9%, mature on May 29, 2019, may be prepaid without penalty, and are subordinated to any current or future Senior Debt as defined in the Subordinated Security Agreement. The Subordinated Security Agreement secures payment and performance of the Company’s obligations under the Notes and as a result, MedTech was granted a subordinated security interest in the Company’s assets. Total amounts payable by the Company under its various debt obligations outstanding as of December 31, 2015 during the next five years are: (in thousands) Years ending December 31, 2016 $ 1,485 2017 197 2018 - 2019 5,763 Total $ 7,445

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	12 Months Ended
	Dec. 31, 2015
STOCKHOLDERS' EQUITY [Abstract]
STOCKHOLDERS' EQUITY	NOTE N – STOCKHOLDERS' EQUITY Chinese subsidiaries dividends and statutory reserves The payment of dividends by entities organized in China is subject to limitations. In particular, regulations in China currently permit payment of dividends only out of accumulated profits as determined in accordance with PRC accounting standards and regulations. Based on People’s Republic of China (PRC) accounting standards, our Chinese subsidiaries are also required to set aside at least 10% of after-tax profit each year to their general reserves until the accumulative amount of such reserves reaches 50% of the registered capital. As of December 31, 2015 and 2014, statutory reserves aggregating approximately $35,000 were recorded in the Company’s consolidated balance sheets. These reserves are not distributable as cash dividends. In addition, they are required to allocate a portion of their after-tax profit to their staff welfare and bonus fund at the discretion of their respective boards of directors. Moreover, if any of our PRC subsidiaries incurs debt on its own behalf in the future, the instruments governing the debt may restrict its ability to pay dividends or make other distributions to us. Distribution of dividends from the Chinese operating companies to foreign shareholders is subject to a 10% withholding tax.

OPTION PLANS

OPTION PLANS	12 Months Ended
	Dec. 31, 2015
OPTION PLANS [Abstract]
OPTION PLANS	NOTE O - OPTION PLANS 1999 Stock Option Plan In July 1999, the Company’s Board of Directors approved the 1999 Stock Option Plan (“the 1999 Plan”), for which the Company reserved an aggregate of 2,000,000 shares of common stock. (or in the case of incentive stock options granted to any individual principal stockholder who owns stock possessing more than 10% of the total combined voting power of all voting stock of the Company, 110% of such fair market value In December 2001, the Board of Directors of the Company increased the number of shares authorized for issuance under the 1999 Plan by 2,000,000 shares to 5,000,000 shares. The term for which options may be granted under the 1999 Plan expired July 12, 2009. During the year ended December 31, 2015, no options to purchase shares of common stock under the 1999 Plan were retired. 2004 Stock Option and Stock Issuance Plan In October 2004, the Company’s stockholders approved the 2004 Stock Option and Stock Issuance Plan (“the 2004 Plan”), for which the Company reserved an aggregate of 2,500,000 shares of common stock. Options granted under the 2004 Plan shall be non-qualified or incentive stock options and the exercise price is the fair market value of the common stock on the date of grant except that for incentive stock options it shall be 110% of the fair market value if the Optionee The term of any option may be fixed by the Board of Directors or committee but in no event shall exceed ten years from the date of grant. Options are exercisable upon payment in full of the exercise price, either in cash or in common stock valued at fair market value on the date of exercise of the option. The term for which options or stock may be granted under the 2004 Plan expired July 12, 2014. Under the stock issuance program, the purchase price per share shall be fixed by the Board of Directors or committee but cannot be less than the fair market value of the common stock on the issuance date. Payment for the shares may be made in cash or check payable to us, or for past services rendered to us and all shares of common stock issued thereunder shall vest upon issuance unless otherwise directed by the committee. The number of shares issuable is also subject to adjustments upon the occurrence of certain events, including stock dividends, stock splits, mergers, consolidations, reorganizations, recapitalizations, or other capital adjustments. The 2004 Plan provides that a committee of the Board of Directors of the Company will administer it and that the committee will have full authority to During the year ended December 31, 2015, options to purchase 51,912 shares of common stock under the 2004 Plan at exercise prices ranging from $0.57 to $0.58 were retired. 2010 Stock Option and Stock Issuance Plan On June 17, 2010 the Board of Directors approved the 2010 Stock Plan (the “2010 Plan”) for officers, directors, employees and consultants of the Company. The stock issuable under the 2010 Plan shall be shares of the Company’s authorized but unissued or reacquired common stock. The maximum number of shares of common stock which may be issued under the 2010 Plan is 5,000,000 shares. The 2010 Plan is comprised of two separate equity programs, the Options Grant Program, under which eligible persons may be granted options to purchase shares of common stock, and the Stock Issuance Program, under which eligible persons may be issued shares of common stock directly, either through the immediate purchase of such shares or as a bonus for services rendered to the Company. The 2010 Plan provides that the Board of Directors, or a committee of the Board of Directors, will administer it with full authority to determine the identity of the recipients of the options or shares and the number of options or shares. Options granted under the 2010 Plan may be either incentive stock options or non-qualified stock options. The option price shall be 100% of the fair market value of the common stock on the date of the grant ( or in the case of incentive stock options granted to any individual stockholder possessing more than 10% of the total combined voting power of all voting stock of the Company, 110% of such fair market value). The term of any option may be fixed by the Board of Directors, or its authorized committee, but in no event shall it exceed five years from the date of grant. Options are exercisable upon payment in full of the exercise price, either in cash or in common stock valued at fair market value on the date of exercise of the option. No shares or options were granted under the 2010 Plan during the year ended December 31, 2015 and 3,387 shares were withheld for withholding taxes. 2013 Stock Option and Stock Issuance Plan On October 30, 2013, the Board of Directors approved the 2013 Stock Plan (the “2013 Plan”) for officers, directors, employees and consultants of the Company. The stock issuable under the 2013 Plan shall be shares of the Company’s authorized but unissued or reacquired common stock. The maximum number of shares of common stock which may be issued under the 2013 Plan is 7,500,000 shares. The 2013 Plan is comprised of two separate equity programs, the Options Grant Program, under which eligible persons may be granted options to purchase shares of common stock, and the Stock Issuance Program, under which eligible persons may be issued shares of common stock directly, either through the immediate purchase of such shares or as a bonus for services rendered to the Company. During the year ended December 31, 2015, 3,742,500 restricted shares of common stock were granted under the 2013 Plan to employees and directors of the Company, vesting at various times through June 2019, and 1,644 shares were withheld for withholding taxes. No options were granted under the 2013 Plan during the year ended December 31, 2015. Stock option activity under all the plans for the year ended December 31, 2015 is summarized as follows: Outstanding Options Shares Available for Future Issuance Number of Shares Range of Exercise Price per Share Weighted Average Exercise Price Balance at December 31, 2014 - 951,912 $ 0.12 - $0.58 $ 0.17 Options granted - Options exercised - Options canceled under 2004 Plan - (51,912 ) $ 0.58 Balance at December 31, 2015 - 900,000 $ 0.12 - $0.22 $ 0.15 The following table summarizes information about stock options outstanding and exercisable at December 31, 2015: Options Outstanding Options Exercisable Number Outstanding at December 31, 2015 Weighted Average Remaining Contractual Life (yrs.) Weighted Average Exercise Price Number Exercisable at December 31, 2015 Weighted Average Exercise Price Range of Exercise Prices $ 0.12 - $0.22 900,000 1.1 $ 0.15 900,000 $ 0.15 The aggregate intrinsic value of options outstanding and currently exercisable was $48,000 at December 31, 2015. The following table summarizes non-vested restricted shares for the year ended December 31, 2015: Shares Available for Future Issuance Unvested shares Weighted Average Grant Date Fair Value Balance at December 31, 2014 7,241,234 565,000 $ 0.27 Granted (3,742,500 ) 3,742,500 $ 0.18 Vested (1,474,519 ) $ 0.21 Forfeited 5,481 (5,481 ) $ 0.18 Balance at December 31, 2015 3,504,215 2,827,500 $ 0.18 There were 75,143,396 remaining authorized shares of common stock after reserves for all stock option plans.

BUSINESS COMBINATION

BUSINESS COMBINATION	12 Months Ended
	Dec. 31, 2015
BUSINESS COMBINATION [Abstract]
BUSINESS COMBINATION	NOTE P – BUSINESS COMBINATION Genwell Acquisition On August 6, 2014 the Company acquired all of the outstanding shares of Genwell Instruments Co. Ltd. (Genwell), located in Wuxi, China, through its wholly owned subsidiary Wuxi Gentone Instruments Co. Ltd. (Gentone) for cash and notes of Chinese Yuan RMB13,250,000 (approximately $2,151,000 at the acquisition date). The notes totaling RMB6,250,000 (approximately $1,015,000) were payable one year from the closing date with interest at the rate of 5% per annum, and modified in May 2015 as described in Note L. Genwell was formed in China in 2010 with the assistance of a government grant to develop the MobiCare TM The operating results of Genwell from the date of acquisition are included in the accompanying consolidated financial statements. The following table summarizes the fair values of the net assets acquired: ( in thousands Cash and cash equivalents $ 113 Accounts receivable and other current assets 2 Property and equipment 3 Intangible assets 2,033 Net assets acquired $ 2,151 NetWolves Acquisition On May 29, 2015, the Company entered into an agreement for, and completed its purchase of, all of the assets of NetWolves, LLC and its affiliates, including the membership interests in NetWolves Network Services, LLC (collectively, “NetWolves”) for $18,000,000 (the “Purchase Price”). The purchase of NetWolves was accomplished pursuant to an Asset Purchase Agreement (the "Purchase Agreement"). As a result, the Company effectively purchased all rights, titles and ownership of all assets held by NetWolves. The Purchase Price was paid using $14,200,000 in cash on hand and $3,800,000 raised through the issuance of the Note to MedTech (See Note M). The Company believes there are significant operational synergies between NetWolves’ capabilities and VasoHealthcare IT’s requirements under its VAR contract with GEHC, as well as the opportunity to expand NetWolves’ existing services to the healthcare IT market. The operating results of NetWolves from May 29, 2015 to December 31, 2015 are included in the accompanying consolidated statements of income and comprehensive income for the year ended December 31, 2015. The accompanying consolidated balance sheet at December 31, 2015 reflects the acquisition of NetWolves effective May 29, 2015. In accordance with Accounting Standards Codification 805, Business Combinations, the total purchase consideration is allocated to the net tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at May 29, 2015 (the acquisition date). The purchase price was initially allocated based on the information then available, and certain amounts were adjusted after revisions of certain preliminary estimates. The following table summarizes the current allocation of the assets acquired and liabilities assumed based on their preliminary estimated fair values and current measurement period adjustments as follows: ( in thousands Assets acquired/(liabilities assumed) As initially reported Measurement period adjustments As adjusted Cash and cash equivalents $ 733 $ - $ 733 Accounts receivable and other current assets 1,638 (103 ) 1,535 Other assets 50 - 50 Property and equipment 2,359 - 2,359 Accounts payable and other current liabilities (4,382 ) - (4,382 ) Long term debt (1,701 ) - (1,701 ) Goodwill and other intangibles 19,303 (4,928 ) 14,375 Customer-related intangibles - 5,031 5,031 Total $ 18,000 $ - $ 18,000 During the year ended December 31, 2015, the Company expensed $100,000 of acquisition-related legal costs and incurred $130,000 in debt issue costs. The legal costs are included in the line item Selling, General & Administrative costs in the accompanying consolidated statements of income and comprehensive income. The debt issue costs are recorded as a reduction to long term notes payable in the accompanying consolidated balance sheet at December 31, 2015. The amounts of revenue and net loss of NetWolves included in the Company’s consolidated statements of income and comprehensive income for the year ended December 31, 2015 was $20,661,000 and $125,000, respectively. The goodwill is expected to be deductible for tax purposes. The following unaudited supplemental pro forma information presents the financial results as if the acquisitions of Genwell and NetWolves had occurred January 1, 2013, and January 1, 2014, respectively. (in thousands) Year ended December 31, 2015 December 31, 2014 (unaudited) (unaudited) Revenue $ 70,234 $ 64,552 Net income 4,007 152 Basic earnings per share $ 0.03 $ 0.00 Diluted earnings per share $ 0.03 $ 0.00

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2015
INCOME TAXES [Abstract]
INCOME TAXES	NOTE Q - INCOME TAXES The following is a geographical breakdown of income before the provision for income taxes: (in thousands) Year ended December 31, 2015 2014 Domestic 4,405 1,642 Foreign (626 ) (387 ) Income before provision for income taxes 3,779 1,255 The provision for income taxes consisted of the following: (in thousands) Year ended December 31, 2015 2014 Current provision (benefit) Federal 92 54 State 208 45 Foreign (10 ) 28 Total current provision 290 127 Deferred benefit Federal (284 ) - State (50 ) - Foreign - - Total deferred benefit (334 ) - Total (benefit) provision for income taxes (44 ) 127 Effective income tax rate -1.16 % 10.14 % Income tax benefit for the year ended December 31, 2015 was $44,000 due primarily to a $560,000 reduction in the valuation allowance for deferred tax assets, partially offset by $226,000 higher tax expense related to deferred tax liabilities arising from goodwill generated by the NetWolves acquisition, as well as higher state income taxes and federal alternative minimum taxes. The Company recorded income tax expense of $127,000 for the year ended December 31, 2014, which consisted mainly of federal alternative minimum taxes and state taxes. During the year ended December 31, 2015, the Company reviewed previous positive and negative evidence and also reviewed its expected taxable income for future periods and concluded that it is more likely than not that approximately $560,000 of tax benefits related to net operating loss carryforwards will be utilized in future tax years and, therefore, reduced its valuation allowance during the year ended December 31, 2015 in accordance with ASC 740. In addition, the Company expects to provide a valuation allowance on the remaining future tax benefits until it can sustain a level of profitability that demonstrates its ability to utilize the remaining assets, or other significant positive evidence arises that suggests its ability to utilize the remaining assets. The Company will continue to re-assess its reserves on deferred income tax assets in future periods on a quarterly basis. The following is a reconciliation of the effective income tax rate to the federal statutory rate: For the year ended December 31, 2015 December 31, 2014 % % Federal statutory rate 34.00 34.00 State income taxes 8.99 6.00 Change in valuation allowance relating to operations (8.84 ) - Utilizations of net operating loss carryforward (42.40 ) (40.00 ) Foreign taxes (0.28 ) 2.28 Alternative minimum tax 2.37 4.28 Other 5.00 3.58 (1.16 ) 10.14 The effective tax rate increased mainly due to the effects of adjusting the deferred tax asset valuation allowance for the year ended December 31, 2015 to reflect a change in estimate of future taxable income. As of December 31, 2015, the recorded deferred tax assets were $17,029,000, reflecting a decrease of $1,515,000 during the year ended December 31, 2015, which was offset by a valuation allowance of $16,170,000, reflecting a decrease of $2,374,000. The components of our deferred tax assets and liabilities are summarized as follows: (in thousands) December 31, 2015 December 31, 2014 Deferred Tax Assets: Net operating loss carryforwards $ 14,076 $ 16,014 Depreciation and amortization 138 219 Stock-based compensation 59 33 Allowance for doubtful accounts 53 14 Reserve for obsolete inventory 364 301 Tax credits 549 381 Expense accruals 442 315 Deferred revenue 1,348 1,267 Total gross deferred taxes 17,029 18,544 Valuation allowance (16,170 ) (18,544 ) Net deferred tax assets 859 - Deferred Tax Liabilities: Deferred commissions (299 ) - Goodwill (226 ) - Differences in timing of revenue recognition (112 ) (112 ) Total deferred tax liabilities (637 ) (112 ) Total deferred tax assets (liabilities) 222 (112 ) Recorded as: Non-current deferred tax assets (in other assets) 334 - Non-current deferred tax liabilities (112 ) (112 ) Total deferred tax assets (liabilities) $ 222 $ (112 ) The activity in the valuation allowance is set forth below: (in thousands) 2015 2014 Valuation allowance, January 1, $ 18,544 $ 19,041 Partial release of allowance (560 ) - Change in valuation allowance (1,814 ) (497 ) Valuation allowance, December 31, $ 16,170 $ 18,544 At December 31, 2015, the Company had net operating loss carryforwards for federal and state income tax purposes of approximately $35 million expiring at various dates from 2020 through 2033. No net operating loss carryforwards expired in the years ended December 31, 2015 and 2014. Under current tax law, the utilization of tax attributes will be restricted if an ownership change, as defined, were to occur. Section 382 of the Internal Revenue Code provides, in general, that if an “ownership change” occurs with respect to a corporation with net operating and other loss carryforwards, such carryforwards will be available to offset taxable income in each taxable year after the ownership change only up to the “Section 382 Limitation” for each year (generally, the product of the fair market value of the corporation’s stock at the time of the ownership change, with certain adjustments, and a specified long-term tax-exempt bond rate at such time). The Company’s ability to use its loss carryforwards will be limited in the event of an ownership change. Except for earnings that have been previously taxed in the U.S. under the subpart F rules and can be remitted to the U.S., we currently have no intention to remit any undistributed earnings of our foreign subsidiaries in a taxable manner. As of December 31, 2015, we have approximately $7.5 million of foreign undistributed earnings. Should additional amounts of our foreign subsidiaries’ undistributed earnings be remitted to the U.S. as taxable dividends, we would expect that this would result in additional U.S. tax at a statutory rate of up to 35% and offset by any potential foreign tax credits. Due to uncertainty surrounding the timing and manner in which such distributions could occur, it is not practicable to estimate the amount of such liability.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2015
COMMITMENTS AND CONTINGENCIES [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE R - COMMITMENTS AND CONTINGENCIES Sales representation agreement In June 2012, the Company concluded an amendment of the GEHC Agreement with GEHC, originally signed on May 19, 2010. The amendment, effective July 1, 2012, extended the initial term of three years commencing July 1, 2010 to five years through June 30, 2015. In December 2014, the Company concluded an additional amendment, effective January 1, 2015, extending the term through December 31, 2018, subject to earlier termination under certain circumstances and termination without cause on or after July 1, 2017. These circumstances include not materially achieving certain sales goals, not maintaining a minimum number of sales representatives, and various legal and GEHC policy requirements. Under the terms of the agreement, the Company is required to lease dedicated computer equipment from GEHC for connectivity to their network. Facility Leases Upon expiration of the Westbury, New York lease in September 2015, the Company relocated its offices from Westbury to a facility in Plainview, New York, under a seven-year agreement expiring in September 2022. The Company also leases offices in New York City under a five-year agreement expiring May 2017. NetWolves houses its operations in leased facilities in Tampa, Florida, under an agreement expiring in May 2016. FGE leases facilities in Wuxi, China, pursuant to leases expiring in December 2020, and a facility in Foshan, China, pursuant to a lease that expires in April 2016. The Company expects to renew its leases expiring in 2016. Vehicle Lease Agreement In June 2011, the Company began taking deliveries under a closed-end master lease agreement for the provision of vehicles to the sales team of its Professional Sales Service segment. Vehicles obtained under the terms of the agreement are leased generally for a 36-month term, and payments are fixed for each year of the agreement, subject to readjustment at the beginning of the second and third year. Future rental payments under these operating leases aggregate approximately as follows: For the years ended December 31, (in thousands) Vehicles Facilities Equipment Total 2016 $ 288 $ 236 $ 127 $ 651 2017 167 139 10 316 2018 41 123 - 164 2019 - 125 - 125 2020 - 127 - 127 Thereafter - 130 130 Total $ 496 $ 880 $ 137 $ 1,513 Rental expense for all operating leases totaled approximately $713,000 and $620,000 for the years ended December 31, 2015 and 2014, respectively. Employment Agreements On March 21, 2011, the Company entered into an Employment Agreement with its President and Chief Executive Officer, Dr. Jun Ma, for a three-year term ended on March 14, 2014. The agreement was amended in 2013 and again in 2015 to provide for a continuing three-year term, unless earlier terminated by the Company, but in no event can extend beyond March 14, 2021. The Employment Agreement currently provides for annual compensation of $375,000. Dr. Ma shall be eligible to receive a bonus for each fiscal year thereafter during the employment term. The amount and the occasion for payment of such bonus, if any, shall be at the discretion of the Board of Directors. Dr. Ma shall also be eligible for an award under any long-term incentive compensation plan and grants of options and awards of shares of the Company’s stock, as determined at the Board of Directors’ discretion. The Employment Agreement further provides for reimbursement of certain expenses, and certain severance benefits in the event of termination prior to the expiration date of the Employment Agreement. On June 1, 2015, the Company entered into an Employment Agreement with Mr. Peter Castle to be its Chief Operating Officer. The agreement provides for a three-year term ending on June 1, 2018 and shall extend for additional one-year periods annually commencing June 1, 2018, unless earlier terminated by the Company, but in no event can extend beyond June 1, 2021. The Employment Agreement currently provides for annual compensation of $350,000. Mr. Castle shall be eligible to receive a bonus for each fiscal year thereafter during the employment term. The amount and the occasion for payment of such bonus, if any, shall be at the discretion of the Board of Directors. Mr. Castle shall also be eligible for an award under any long-term incentive compensation plan and grants of options and awards of shares of the Company’s stock, as determined at the Board of Directors’ discretion. The Employment Agreement further provides for reimbursement of certain expenses, and certain severance benefits in the event of termination prior to the expiration date of the Employment Agreement. Licensing and Support Service Agreement In 2010, NetWolves executed a licensing and support service agreement for the upgrade of its billing system. The agreement initially was set to expire in December 2014; however, it was extended for a period of two years in June 2013 and accordingly now expires in December 2016. The agreement provides for monthly recurring charges based on a percentage of billed revenues using these services, which charges aggregated approximately $195,000 in 2015. Letters of Credit At December 31, 2015 we are contingently liable under two standby letters of credit approximating $270,500 in total. The letters of credit are being maintained as security for debt service payments to two vendors. Litigation The Company is currently, and has been in the past, a party to various routine legal proceedings, primarily employee related matters, incident to the ordinary course of business. The Company believes that the outcome of all such pending legal proceedings in the aggregate is unlikely to have a material adverse effect on the business or consolidated financial condition of the Company. Foreign operations During the years ended December 31, 2015 and 2014, the Company had and continues to have operations in China. Operating transactions in China are denominated in RMB, which is not freely convertible into foreign currencies. Commercial law is still developing in China and there are limited legal precedents to follow in commercial transactions. There are many tax jurisdictions each of which may have changing tax laws. Applicable taxes include value added taxes (“VAT”), corporate income tax, and social (payroll) taxes. Regulations are often unclear. Tax declarations (reports) are subject to review and taxing authorities may impose fines, penalties and interest. These facts create risks in China.

401(K) PLAN

401(K) PLAN	12 Months Ended
	Dec. 31, 2015
401(K) PLAN [Abstract]
401(K) PLAN	NOTE S - 401(K) PLANS The Company maintains two defined contribution plans to provide retirement benefits for its employees - the Vasomedical, Inc. 401(k) Plan adopted in April 1997, and the NetWolves Network Services, LLC 401(k) Plan adopted in January 2015. As allowed under Section 401(k) of the Internal Revenue Code, the plan provides tax-deferred salary deductions for eligible employees. Employees are eligible to participate in the next quarter enrollment period after employment under the Vasomedical Plan and after six months employment under the NetWolves Plan. Participants may make voluntary contributions to the plan up to 80% of their compensation under the Vasomedical Plan, or up to the maximum allowed by law under the NetWolves Plan. In the years ended December 31, 2015 and 2014 the Company made discretionary contributions of approximately $95,000 and $85,000, respectively, to match a percentage of employee contributions.

SUMMARY OF SIGNIFICANT ACCOUN26

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of Vasomedical, Inc., its wholly-owned subsidiaries, and variable interest entities where the Company is the primary beneficiary. Significant intercompany accounts and transactions have been eliminated. The Company’s minority interest in the VSK joint venture is accounted for using the equity method of accounting and is included in other assets on the consolidated balance sheet.
Variable Interest Entity	Variable Interest Entity Basic Information The Company follows the guidance of accounting for variable interest entities, which requires certain variable interest entities to be consolidated by the primary beneficiary of the entities. Biox is a Variable Interest Entity (VIE). Laws and regulations of the Peoples Republic of China (“PRC”) prohibit or restrict companies with foreign ownership from certain activities and benefits including eligibility for certain government grants and certain rebates related to commercial activities. To provide the Company the expected residual returns of the VIE, the Company, through its subsidiary Gentone, entered into a series of contractual arrangements with Biox and its registered shareholders to enable the Company, to: · exercise effective control over the VIE; · receive substantially all of the economic benefits and residual returns, and absorb substantially all the risks of the VIE as if they were their sole shareholders; and · have an exclusive option to purchase all of the equity interests in the VIE. The Company’s management evaluated the relationships between the Company and Biox, and the economic benefits flow of the applicable contractual arrangements. The Company concluded that it is the primary beneficiary of Biox. As a result, the results of operations, assets and liabilities of Biox have been included in the Company’s consolidated financial statements. The significant agreements through which the Company exercises effective control over Biox are: · the Exclusive Technical Consulting Services Agreement between Biox and Gentone; · the Option Agreement on Purchase of the Equity Interest executed by and among the shareholders of Biox and Gentone; · the Equity Pledge Agreement executed by and among the shareholders of Biox and Gentone; and · the Powers of Attorney issued by the shareholders of Biox. Financial Information of VIE Liabilities recognized as a result of consolidating this VIE do not represent additional claims on the Company’s general assets. VIE assets can be used to settle the obligations of the primary beneficiary. The financial information of Biox, which was included in the accompanying consolidated financial statements, is presented as follows: (in thousands) As of December 31, 2015 As of December 31, 2014 Cash and cash equivalents $ 104 $ 159 Total assets $ 1,168 $ 1,047 Total liabilities $ 1,007 $ 878 (in thousands) Year ended December 31, 2015 2014 Total net revenue $ 1,715 $ 1,744 Net loss $ (35 ) $ (373 )
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Significant estimates and assumptions relate to estimates of collectibility of accounts receivable, the realizability of deferred tax assets, stock-based compensation, values and lives assigned to acquired intangible assets, the adequacy of inventory and warranty reserves, and allocation of fair value among the elements of the multi-deliverable arrangements. Additionally, significant estimates and assumptions impact the Company’s accounting relative to its business combination. Actual results could differ from those estimates.
Revenue Recognition	Revenue and Expense Recognition for the Professional Sales Service Segment The Company recognizes commission revenue in its professional sales service segment (see Note C) when persuasive evidence of an arrangement exists, service has been rendered, the price is fixed or determinable and collectability is reasonably assured. These conditions are deemed to be met when the underlying equipment has been delivered and accepted at the customer site in accordance with the specific terms of the sales agreement. Consequently, amounts billable under the agreement with GE Healthcare in advance of the customer acceptance of the equipment are recorded as accounts receivable and deferred revenue in the Consolidated Balance Sheets. Similarly, commissions payable to our sales force related to such billings are recorded as deferred commission expense when the associated deferred revenue is recorded. Commission expense is recognized when the corresponding commission revenue is recognized Revenue and Expense Recognition for the IT Segment The Company currently derives its revenues in the IT segment from two sources: (1) telecommunication and managed network services, which are comprised primarily of fixed monthly fees and variable usage charges; and (2) the resale to diagnostic imaging service providers of GEHC’s PACS software solutions, which is comprised of software from GEHC and other vendors, hardware, related solution implementation services, and post-implementation customer support (“PCS”). We offer our customers the option to purchase our software solutions or to subscribe our solutions under a monthly Software as a Service (“SaaS”) fee basis. Customers that purchase our software solutions may elect to purchase PCS, comprised of software license updates and product support contracts, which provide our customers with rights to unspecified product upgrades and maintenance releases issued during the support period, as well as technical support assistance and remote network monitoring. Revenue Recognition for Multiple-Element Arrangements - Arrangements with Software and Non-software Elements We enter into multiple-element arrangements that may include a combination of our various software related and non-software related products and services offerings including new software licenses, hardware, implementation services, PCS and monthly subscription-based SaaS solutions. In such arrangements, we first allocate the total arrangement consideration based on the relative selling prices of the software group of elements as a whole and to the nonsoftware elements. We then further allocate consideration within the software group to the respective elements within that group following the guidance in ASC 985-605, “Software-Revenue Recognition” and allocate consideration within the nonsoftware group to the respective elements within that group following the guidance in ASC 605-25, “Revenue Recognition, Multiple-Element Arrangements”. After the arrangement consideration has been allocated to the elements, we account for each respective element in the arrangement as described below. Revenue Recognition for Multiple-Element Arrangements - Software Products and Software Related Services (Software Arrangements) We enter into arrangements with customers that purchase both software related products and software related services from us at the same time, or within close proximity of one another (referred to as software related multiple-element arrangements). Such software related multiple-element arrangements include the sale of our software products, implementation services, and PCS, whereby software license delivery is followed by the subsequent or contemporaneous delivery of the other elements. For those software related multiple-element arrangements, we have applied the residual method to determine the amount of new software license revenues to be recognized pursuant to ASC 985-605. Under the residual method, if fair value exists for undelivered elements in a multiple-element arrangement, such fair value of the undelivered elements is deferred with the remaining portion of the arrangement consideration generally recognized upon delivery of the software license. We allocate the fair value of each element of a software related multiple-element arrangement based upon its fair value as determined by our vendor specific objective evidence (“VSOE” as described further below), with any remaining amount allocated to the software license. The basis for our software license revenue recognition is substantially governed by the accounting guidance contained in ASC 985-605. We exercise judgment and use estimates in connection with the determination of the amount of software and software related services revenues to be recognized in each accounting period. We recognize new software licenses revenues when: (1) we enter into a legally binding arrangement with a customer for the license of software; (2) we deliver the products; (3) the sale price is fixed or determinable and free of contingencies or significant uncertainties; and (4) collection is probable. Revenues that are not recognized at the time of sale because the foregoing conditions are not met are recognized when those conditions are subsequently met. Our software license arrangements do not include acceptance provisions. The vast majority of our software license arrangements include PCS, which is ordered at the customer’s option and is recognized ratably over the term of the arrangement, typically three to five years. PCS provides customers with rights to unspecified software product upgrades, maintenance releases and patches released during the term of the support period, as well as remote network monitoring and technical support. PCS is generally priced as a percentage of the net new software licenses fees. Revenue Recognition for Multiple-Element Arrangements – SaaS, Hardware and Implementation Services (Non-software Arrangements) We enter into arrangements with customers that purchase multiple non-software related products and services from us within close proximity of one another (referred to as nonsoftware multiple-element arrangements). Each element within a non-software multiple-element arrangement is accounted for as a separate unit of accounting provided the services have value to the customer on a standalone basis. We consider a deliverable to have standalone value if the service is sold separately by us or another vendor or could be resold by the customer. For our non-software multiple-element arrangements, we allocate revenue to each element based on a selling price hierarchy at the arrangement’s inception. The selling price for each element is based upon the following selling price hierarchy: VSOE if available, third party evidence (“TPE”) if VSOE is not available, or estimated selling price (“ESP”) if neither VSOE nor TPE are available. When possible, we establish VSOE of selling price for deliverables in software and non-software multiple-element arrangements using the price charged for a deliverable when sold separately. TPE is established by evaluating similar and interchangeable competitor products or services in standalone arrangements with similarly situated customers. If we are unable to determine the selling price because VSOE or TPE does not exist, we determine ESP for the purposes of allocating the arrangement by reviewing several other external and internal factors including, but not limited to: historical transactions; pricing practices including discounting; and competition. The determination of ESP is made through consultation with and approval by our management, taking into consideration our pricing model and go-to-market strategy. As these strategies evolve, we may modify our pricing practices in the future, which could result in changes to our determination of VSOE, TPE and ESP. As a result, our future revenue recognition for multiple-element arrangements could differ materially from our results in the current period. Our revenue recognition policy for non-software deliverables including SaaS and implementation services is based upon the accounting guidance contained in ASC 605-25 and we exercise judgment and use estimates in connection with the determination of the amount of SaaS and implementation service revenues to be recognized in each accounting period. Revenues from the sales of our non-software elements are recognized when: (1) persuasive evidence of an arrangement exists; (2) we perform the services or deliver the product; (3) the sale price is fixed or determinable; and (4) collection is reasonably assured. Revenues that are not recognized at the time of sale because the foregoing conditions are not met are recognized when those conditions are subsequently met. Our arrangements are documented in a written contract signed by the customer, are non-cancelable, do not contain refund-type provisions, and do not include acceptance provisions. Our SaaS offerings provide deployment of our software and hardware and related IT monitoring infrastructure including PCS for a stated term that is hosted at our data center facilities or physically on-premises at customer facilities for a monthly subscription fee. Revenues for these SaaS offerings are generally recognized ratably over the contract term commencing with the date the service is made available to customers and all other revenue recognition criteria have been satisfied. The Company recognizes revenue for hardware upon delivery and for implementation services rendered when related milestones are complete. Revenue and Expense Recognition for the Equipment Segment In the United States, we recognize revenue from the sale of our medical equipment in the period in which we deliver the product to the customer. Revenue from the sale of our medical equipment to international markets is recognized upon shipment of the product to a common carrier, as are supplies, accessories and spare parts delivered to both domestic and international customers. In most cases, revenue from domestic EECP ® ® ® Each of these elements represent individual units of accounting as the delivered item has value to a customer on a stand-alone basis, objective and reliable evidence of fair value exists for undelivered items, and arrangements normally do not contain a general right of return relative to the delivered item. We determine fair value based on the price of the deliverable when it is sold separately, or based on third-party evidence, or based on estimated selling price. Assuming all other criteria for revenue recognition have been met, we recognize equipment sales and services revenue for: (1) EECP ® The Company also recognizes revenue generated from servicing EECP ® ®
Shipping and Handling Costs	Shipping and Handling Costs All shipping and handling expenses are charged to cost of sales. Amounts billed to customers related to shipping and handling costs are included as a component of sales.
Research and Development	Research and Development Research and development costs attributable to development are expensed as incurred. Included in research and development costs is amortization expense related to the capitalized cost of EECP ®
Share-Based Compensation	Share-Based Compensation The Company complies with ASC Topic 718, “Compensation – Stock Compensation” (“ASC 718”), which requires all companies to recognize the cost of services received in exchange for equity instruments, to be recognized in the financial statements based on their fair values. For purposes of estimating the fair value of each option on the date of grant, the Company utilizes the Black-Scholes option-pricing model. Equity instruments issued to non-employees in exchange for goods, fees and services are accounted for under the fair value-based method of ASC Topic 505, “Equity” (“ASC 505”). During the year ended December 31, 2015, the Company granted 1,592,500 restricted shares of common stock valued at $270,700 to non-officer employees, vesting over the four year period ending June 2019; 2,000,000 restricted shares of common stock valued at $367,000 to officers, of which 1,000,000 shares vested immediately with the remainder vesting over the four year period ending June 2019; and 150,000 restricted shares of common stock valued at $30,000 to a director, which vested immediately. The total fair value of shares vested during the year ended December 31, 2015 was $277,000 for employees. During the year ended December 31, 2014, the Company granted 230,000 restricted shares of common stock valued at $49,100 to non-officer employees, vesting at various periods through September 2017; 450,000 restricted shares of common stock valued at $157,500 to officers, vesting at various periods through February 2016; and 500,000 restricted shares of common stock valued at $175,000 to directors, which vested immediately. The total fair value of shares vested during the year ended December 31, 2014 was $376,000 for employees. The Company did not grant any stock options during the years ended December 31, 2015 or 2014. The intrinsic value of options exercised during the years ended December 31, 2015 and 2014 was $0 and $58,500, respectively. Share-based compensation expense recognized for the years ended December 31, 2015 and 2014 was $342,000 and $390,000, respectively. Unrecognized expense related to existing share-based compensation and arrangements is approximately $402,000 at December 31, 2015 and will be recognized over a period of approximately 3.5 years.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents represent cash and short-term, highly liquid investments either in certificates of deposit, treasury bills, money market funds, or investment grade commercial paper issued by major corporations and financial institutions that generally have maturities of three months or less from the date of acquisition. Dividend and interest income are recognized when earned. The cost of securities sold is calculated using the specific identification method.
Short-Term Investments	Short-Term Investments The Company’s short-term investments consist of certificates of deposit with original maturities greater than three months and up to one year.
Accounts Receivable, net	Accounts Receivable, net The Company’s accounts receivable are due from customers to whom we sell our products and services, distributors engaged in the distribution of our products and from GEHC. Credit is extended based on evaluation of a customer’s financial condition and, generally, collateral is not required. Accounts receivable are generally due 30 to 90 days from shipment and services provided and are stated at amounts due from customers net of allowances for doubtful accounts, returns, term discounts and other allowances. Accounts that are outstanding longer than the contractual payment terms are considered past due. Estimates are used in determining the allowance for doubtful accounts based on the Company’s historical collections experience, current trends, credit policy and a percentage of its accounts receivable by aging category. In determining these percentages, the Company reviews historical write-offs of their receivables. The Company also looks at the credit quality of their customer base as well as changes in their credit policies. The Company continuously monitors collections and payments from our customers, and writes off receivables when all efforts at collection have been exhausted. While credit losses have historically been within expectations and the provisions established, the Company cannot guarantee that it will continue to experience the same credit loss rates that they have in the past. The changes in the Company’s allowance for doubtful accounts and commission adjustments are as follows: (in thousands) For the year ended December 31, 2015 For the year ended December 31, 2014 Beginning Balance $ 4,571 $ 3,764 Provision for losses on accounts receivable 140 11 Direct write-offs, net of recoveries (48 ) (156 ) Commission adjustments (800 ) 952 Ending Balance $ 3,863 $ 4,571
Concentrations of Credit Risk	Concentrations of Credit Risk We market our equipment and IT software solutions principally to hospitals, diagnostic imaging centers and physician private practices. We perform credit evaluations of our customers’ financial condition and, as a result, believe that our receivable credit risk exposure is limited. For the years ended December 31, 2015 and 2014, no customer in our equipment or IT segment accounted for 10% or more of revenues or accounts receivable. In our professional sales service segment, 100% of our revenues and accounts receivable are with GEHC; however, we believe this risk is acceptable based on GEHC’s financial position. The Company maintains cash balances in certain U.S. financial institutions, which, at times, may exceed the Federal Depository Insurance Corporation (“FDIC”) coverage of $250,000. The Company has not experienced any losses on these accounts and believes it is not subject to any significant credit risk on these accounts. In addition, the FDIC does not insure the Company’s foreign bank balances, which aggregated approximately $317,000 and $410,000 at December 31, 2015 and 2014, respectively.
Inventories, net	Inventories, net The Company values inventory at the lower of cost or estimated market, with cost being determined on a first-in, first-out basis. The Company often places EECP ® ® ® We comply with the provisions of ASC Topic 330 “Inventory”. The statement clarifies that abnormal amounts of idle facility expense, freight, handling costs, and wasted materials (spoilage) should be recognized as current-period charges and requires the allocation of fixed production overhead to inventory based on the normal capacity of the production facilities.
Property and Equipment	Property and Equipment Property and equipment are stated at cost less accumulated depreciation and amortization. Major improvements are capitalized and minor replacements, maintenance and repairs are charged to expense as incurred. Upon retirement or disposal of assets, the cost and related accumulated depreciation are removed from the consolidated balance sheets. Depreciation is expensed over the estimated useful lives of the assets, which range from two to eight years, on a straight-line basis. Accelerated methods of depreciation are used for tax purposes. We amortize leasehold improvements over the useful life of the related leasehold improvement or the life of the related lease, whichever is less.
Goodwill and Intangible Assets	Goodwill and Intangible Assets Goodwill represents the excess of cost over the fair value of net assets of businesses acquired. The Company accounts for goodwill under the guidance of the ASC Topic 350, “Intangibles: Goodwill and Other”. Goodwill acquired in a purchase business combination and determined to have an indefinite useful life is not amortized, but instead tested for impairment, at least annually, in accordance with this guidance. The recoverability of goodwill is subject to an annual impairment test or whenever an event occurs or circumstances change that would more likely than not result in an impairment. I ntangible assets consist of the value of customer contracts and relationships, patent and technology costs, and software. The cost of significant customer-related intangibles is amortized in proportion to estimated total related revenue; cost of other intangible assets is generally amortized on a straight-line basis over the asset's estimated economic life, which range from five to ten years. T he Company capitalizes internal use software development costs incurred during the application development stage. Costs related to preliminary project activities, training, data conversion, and post implementation activities are expensed as incurred. In 2015 the Company capitalized $5,031,000 of cost related to customer contracts and relationships, and $14,375,000 in goodwill, resulting from the NetWolves acquisition. The Company capitalized $220,000 and $263,000 in software development costs for the years ended December 31, 2015 and 2014, respectively.
Impairment of Long-Lived Assets	Impairment of Long-lived Assets The Company reviews the recoverability of all long-lived assets, including the related useful lives, whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset might not be recoverable. If required, the Company compares the estimated fair value determined by either the undiscounted future net cash flows or appraised value to the related asset’s carrying value to determine whether there has been an impairment. If an asset is considered impaired, the asset is written down to fair value, which is based either on discounted cash flows or appraised values in the period the impairment becomes known. No assets were determined to be impaired as of December 31, 2015 and 2014.
Deferred Revenue	Deferred Revenue Amounts billable under the agreement with GEHC in advance of customer acceptance of the equipment are recorded initially as deferred revenue, and commission revenue is subsequently recognized as customer acceptance of such equipment is reported to us by GEHC. We record revenue on extended service contracts ratably over the term of the related service contracts. Under the provisions of ASC 605, we began to defer revenue related to EECP ®
Income Taxes	Income Taxes Deferred income taxes are recognized for temporary differences between financial statement and income tax bases of assets and liabilities and loss carry-forwards for which income tax benefits are expected to be realized in future years. A valuation allowance is established, when necessary, to reduce deferred tax assets to the amount expected to be realized. In estimating future tax consequences, we generally consider all expected future events other than an enactment of changes in the tax laws or rates. Deferred tax assets are continually evaluated for the expected realization. To the extent our judgment regarding the realization of the deferred tax assets changes, an adjustment to the allowance is recorded, with an offsetting increase or decrease, as appropriate, in income tax expense. Such adjustments are recorded in the period in which our estimate as to the realization of the assets changed that it is “more likely than not” that all of the deferred tax assets will be realized. The “realization” standard is subjective and is based upon our estimate of a greater than 50% probability that the deferred tax asset can be realized. The Company early adopted The Company also complies with the provisions of ASC Topic 740, “Income Taxes”, which prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by the relevant taxing authority based on the technical merits. The tax benefit recognized is measured as the largest amount of benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement with the relevant taxing authority. Derecognition of a tax benefit previously recognized results in the Company recording a tax liability that reduces ending retained earnings. Based on its analysis, the Company has determined that it has not incurred any liability for unrecognized tax benefits as of December 31, 2015 and December 31, 2014. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. No amounts were accrued for the payment of interest and penalties at December 31, 2015 and December 31, 2014. Generally, the Company is no longer subject to income tax examinations by major domestic taxing authorities for years before 2012. According to the China tax regulatory framework, there is no statute of limitations on examination of tax filings by tax authorities. However, the general practice is going back five years. Management is currently unaware of any issues under review that could result in significant payments, accruals or material deviations from its position.
Foreign Currency Translation Loss and Comprehensive Income	Foreign Currency Translation Loss and Comprehensive Income In countries in which the Company operates, and the functional currency is other than the U.S. dollar, assets and liabilities are translated using published exchange rates in effect at the consolidated balance sheet date. Equity accounts are translated at historical rates except for the changes in retained earnings during the year as the result of the income statement translation process. Revenues and expenses and cash flows are translated using a weighted average exchange rate for the period. Resulting translation adjustments are recorded as a component of accumulated other comprehensive (loss) income on the accompanying consolidated balance sheet. For the years ended December 31, 2015 and 2014, other comprehensive (loss) income includes losses of $174,000 and $14,000, respectively, which were entirely from foreign currency translation.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company complies with the provisions of ASC 820 “Fair Value Measurements and Disclosures” (“ASC 820”). Under ASC 820, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. In determining fair value, the Company uses various valuation approaches. ASC 820 establishes a fair value hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs reflect the Company’s assumptions about the inputs market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The fair value hierarchy is categorized into three levels based on the inputs as follows: Level 1 Level 2 Level 3 - The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to the short-term maturities of the instruments.
Net Income Per Common Share	Net Income Per Common Share Basic income per common share is based on the weighted average number of common shares outstanding without consideration of potential common stock. Diluted earnings per common share is based on the weighted average number of common and potential dilutive common shares outstanding. Diluted earnings per share were computed based on the weighted average number of shares outstanding plus all potentially dilutive common shares. A reconciliation of basic to diluted shares used in the earnings per share calculation is as follows: (in thousands) Year ended December 31, 2015 2014 Basic weighted average shares outstanding 156,707 155,362 Dilutive effect of options and unvested restricted shares 482 670 Diluted weighted average shares outstanding 157,189 156,032 The following table represents common stock equivalents that were excluded from the computation of diluted earnings per share for the years ended December 31, 2015 and 2014, because the effect of their inclusion would be anti-dilutive. (in thousands) For the year ended December 31, 2015 December 31, 2014 Stock options 300 52
Reclassifications	Reclassifications Certain reclassifications have been made to prior year amounts to conform with the current year presentation.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements The Company continually assesses any new accounting pronouncements to determine their applicability to the Company. Where it is determined that a new accounting pronouncement affects the Company’s financial reporting, the Company undertakes a study to determine the consequence of the change to its financial statements and assures that there are proper controls in place to ascertain that the Company’s consolidated financial statements properly reflect the change. New pronouncements assessed by the Company recently are discussed below: In May 2014, the FASB issued ASU 2014-09 “Revenue from Contracts with Customers”, a comprehensive new revenue recognition standard which will supersede previous existing revenue recognition guidance. The standard creates a five-step model for revenue recognition that requires companies to exercise judgment when considering contract terms and relevant facts and circumstances. The five-step model includes (1) identifying the contract, (2) identifying the separate performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations and (5) recognizing revenue when each performance obligation has been satisfied. The standard also requires expanded disclosures surrounding revenue recognition. The standard is effective for fiscal periods beginning after December 15, 2016 and allows for either full retrospective or modified retrospective adoption. In August 2015, FASB issued ASU 2015-14, “Revenue from Contracts with Customers – Deferral of the Effective Date” (Topic 606). The amendments in this ASU defer the effective date of ASU 2014-09, “Revenue from Contracts with Customers,” for all entities by one year. Public business entities should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the impact of the adoption of this standard on its Consolidated Financial Statements. In April 2015, the FASB issued ASU 2015-03 “Simplifying the Presentation of Debt Issuance Costs”, which changes the presentation of debt issuance costs in financial statements. An entity presents such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is reported as interest expense. The standard is effective for fiscal periods beginning after December 31, 2015 and allows for early adoption. The Company has early adopted this statement for the year ended December 31, 2015, resulting in $130,000 in debt issue costs initially deducted from the (MedTechnology Investments, LLC (“MedTech”) debt and $19,000 amortized to interest expense. In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory”. Inventory under ASU 2015-11 is to be measured at the "lower of cost and net realizable value" which would eliminate the other two options that currently exist for "market": (1) replacement cost and (2) net realizable value less an approximately normal profit margin. ASU 2015-11 defines net realizable value as the "estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation." ASU 2015-11 is effective for fiscal periods beginning after December 15, 2016 and allows for early adoption. The Company is currently evaluating the impact of the adoption of this standard on its Consolidated Financial Statements. In September 2015, the FASB issued ASU 2015-16 “Simplifying the Accounting for Measurement-period Adjustments”, which require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The standard is effective for fiscal periods beginning after December 15, 2015 and allows for early adoption. The Company does not expect the adoption of this standard to have a material effect on its Consolidated Financial Statements. In November 2015, the FASB issued ASU 2015-17 (Topic 740), “Balance Sheet Classification of Deferred Taxes”. This ASU amends existing guidance to require the presentation of deferred tax liabilities and assets as noncurrent within a classified statement of financial position. ASU 2015-17 may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Company early adopted this new standard for the year ended December 31, 2015. In February 2016, The FASB issued ASU 2016-02 (Topic 842), “Leases”. ASU 2016-02 requires that a lessee recognize the assets and liabilities that arise from operating leases. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. This new standard would be effective for the Company beginning January 1, 2019 with early adoption permitted. The Company does not expect the adoption of this standard to have a material effect on its Consolidated Financial Statements.

SUMMARY OF SIGNIFICANT ACCOUN27

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Schedule of Variable Interest Entities	The financial information of Biox, which was included in the accompanying consolidated financial statements, is presented as follows: (in thousands) As of December 31, 2015 As of December 31, 2014 Cash and cash equivalents $ 104 $ 159 Total assets $ 1,168 $ 1,047 Total liabilities $ 1,007 $ 878 (in thousands) Year ended December 31, 2015 2014 Total net revenue $ 1,715 $ 1,744 Net loss $ (35 ) $ (373 )
Changes in Allowance for Doubtful Accounts and Commission Adjustments	The changes in the Company’s allowance for doubtful accounts and commission adjustments are as follows: (in thousands) For the year ended December 31, 2015 For the year ended December 31, 2014 Beginning Balance $ 4,571 $ 3,764 Provision for losses on accounts receivable 140 11 Direct write-offs, net of recoveries (48 ) (156 ) Commission adjustments (800 ) 952 Ending Balance $ 3,863 $ 4,571
Reconciliation of Basic to Diluted Shares Used in Earnings Per Share Calculation	A reconciliation of basic to diluted shares used in the earnings per share calculation is as follows: (in thousands) Year ended December 31, 2015 2014 Basic weighted average shares outstanding 156,707 155,362 Dilutive effect of options and unvested restricted shares 482 670 Diluted weighted average shares outstanding 157,189 156,032
Common Stock Equivalents Excluded from Computation of Diluted Earnings Per Share	The following table represents common stock equivalents that were excluded from the computation of diluted earnings per share for the years ended December 31, 2015 and 2014, because the effect of their inclusion would be anti-dilutive. (in thousands) For the year ended December 31, 2015 December 31, 2014 Stock options 300 52

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	12 Months Ended
	Dec. 31, 2015
SEGMENT REPORTING [Abstract]
Summary Financial Information for Segments	Summary financial information for the segments is set forth below: (in thousands) As of or for the year ended December 31, 2015 Professional Sales Service Segment IT Segment Equipment Segment Corporate Consolidated Revenues from external customers $ 31,584 $ 21,149 $ 4,349 $ - $ 57,082 Operating income (loss) $ 10,024 $ (1,930 ) $ (2,444 ) $ (1,711 ) $ 3,939 Total assets $ 13,854 $ 25,278 $ 8,735 $ 2,551 $ 50,418 Accounts and other receivables, net $ 8,249 $ 2,546 $ 825 $ - $ 11,620 Deferred commission expense $ 2,121 $ 131 $ - $ - $ 2,252 Other assets $ 2,983 $ 296 $ 592 $ 444 $ 4,315 As of or for the year ended December 31, 2014 Professional Sales Service Segment IT Segment Equipment Segment Corporate Consolidated Revenues from external customers $ 30,236 $ 48 $ 4,670 $ - $ 34,954 Operating income (loss) $ 5,997 $ (539 ) $ (2,828 ) $ (1,567 ) $ 1,063 Total assets $ 21,966 $ 61 $ 10,012 $ 8,952 $ 40,991 Accounts and other receivables, net $ 14,306 $ 52 $ 915 $ - $ 15,273 Deferred commission expense $ 2,200 $ - $ - $ - $ 2,200 Other assets $ 4,888 $ - $ 716 $ 13 $ 5,617
Revenues by Geographic Areas	Our revenues were derived from the following geographic areas: (in thousands) For the year ended December 31, 2015 For the year ended December 31, 2014 Domestic (United States) $ 53,860 $ 32,905 Non-domestic (foreign) 3,222 2,049 $ 57,082 $ 34,954

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	12 Months Ended
	Dec. 31, 2015
FAIR VALUE MEASUREMENTS [Abstract]
Assets and Liabilities Measured at Fair Value	The following table presents information about the Company’s assets and liabilities measured at fair value as of December 31, 2015: (in thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance as of December 31, 2015 Assets Cash equivalents invested in money market funds (included in cash and cash equivalents) $ 2 $ - $ - $ 2 The following table presents information about the Company’s assets measured at fair value as of December 31, 2014: (in thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance as of December 31, 2014 Assets Cash equivalents invested in money market funds (included in cash and cash equivalents) $ 8,149 $ - $ - $ 8,149

ACCOUNTS AND OTHER RECEIVABLES

ACCOUNTS AND OTHER RECEIVABLES (Tables)	12 Months Ended
	Dec. 31, 2015
ACCOUNTS AND OTHER RECEIVABLES [Abstract]
Accounts and Other Receivables	The following table presents information regarding the Company’s accounts and other receivables as of December 31, 2015 and 2014: (in thousands) December 31, 2015 December 31, 2014 Trade receivables $ 15,252 $ 19,734 Due from employees 231 110 Allowance for doubtful accounts and commission adjustments (3,863 ) (4,571 ) Accounts and other receivables, net $ 11,620 $ 15,273

INVENTORIES, NET (Tables)

INVENTORIES, NET (Tables)	12 Months Ended
	Dec. 31, 2015
INVENTORIES, NET [Abstract]
Inventories, Net of Reserves	Inventories, net of reserves, consisted of the following: (in thousands) December 31, 2015 December 31, 2014 Raw materials $ 497 $ 583 Work in process 392 679 Finished goods 1,074 636 $ 1,963 $ 1,898

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2015
PROPERTY AND EQUIPMENT [Abstract]
Property and Equipment	Property and equipment is summarized as follows: (in thousands) December 31, 2015 December 31, 2014 Office, laboratory and other equipment $ 1,586 $ 1,114 Equipment furnished for customer or clinical uses 3,992 376 Furniture and fixtures 286 173 5,864 1,663 Less: accumulated depreciation (2,976 ) (1,397 ) Property and equipment, net $ 2,888 $ 266

GOODWILL AND OTHER INTANGIBLES

GOODWILL AND OTHER INTANGIBLES (Tables)	12 Months Ended
	Dec. 31, 2015
GOODWILL AND OTHER INTANGIBLES [Abstract]
Schedule of Changes in Carrying Amount of Goodwill	The changes in the carrying amount of goodwill are as follows: (in thousands) Carrying Amount for the year ended December 31, 2015 December 31, 2014 Beginning of period $ 3,288 $ 3,303 Foreign currency translation (179 ) (15 ) Acquisition of Netwolves 14,375 - End of period $ 17,484 $ 3,288
Schedule of Other Intangible Assets	The Company’s other intangible assets consist of capitalized customer-related intangibles, patent and technology costs, and software costs, as set forth in the following: (in thousands) December 31, 2015 December 31, 2014 Customer-related Costs $ 5,831 $ 800 Accumulated amortization (926 ) (381 ) 4,905 419 Patents and Technology Costs $ 2,423 $ 2,489 Accumulated amortization (806 ) (549 ) 1,617 1,940 Software Costs 1,182 962 Accumulated amortization (727 ) (495 ) 455 467 $ 6,977 $ 2,826
Amortization of Intangibles	Amortization of intangibles for the next five years is: (in thousands) 2016 2017 2018 2019 2020 Amortization expense $ 1,186 $ 1,084 $ 929 $ 807 $ 682

OTHER ASSETS (Tables)

OTHER ASSETS (Tables)	12 Months Ended
	Dec. 31, 2015
OTHER ASSETS [Abstract]
Schedule of Other Assets	Other assets consist of the following at December 31, 2015 and 2014: (in thousands) December 31, 2015 December 31, 2014 Deferred commission expense - noncurrent $ 2,083 $ 2,988 Trade receivables - noncurrent 1,025 2,171 Other 1,207 458 $ 4,315 $ 5,617

DEFERRED REVENUE (Tables)

DEFERRED REVENUE (Tables)	12 Months Ended
	Dec. 31, 2015
DEFERRED REVENUE [Abstract]
Changes in Deferred Revenues	The changes in the Company’s deferred revenues are as follows: (in thousands) For the year ended December 31, 2015 December 31, 2014 Deferred revenue at beginning of period $ 22,532 $ 18,019 Additions: Deferred extended service contracts 654 912 Deferred in-service and training 18 40 Deferred service arrangements 40 88 Deferred commission revenues 10,674 17,992 Recognized as revenue: Deferred extended service contracts (857 ) (869 ) Deferred in-service and training (15 ) (50 ) Deferred service arrangements (69 ) (96 ) Deferred commission revenues (14,461 ) (13,504 ) Deferred revenue at end of period 18,516 22,532 Less: current portion 9,480 9,882 Long-term deferred revenue at end of period $ 9,036 $ 12,650

ACCRUED EXPENSES AND OTHER LI36

ACCRUED EXPENSES AND OTHER LIABILITIES (Tables)	12 Months Ended
	Dec. 31, 2015
ACCRUED EXPENSES AND OTHER LIABILITIES [Abstract]
Schedule of Accrued Liabilities	Accrued expenses and other liabilities consist of the following at December 31, 2015 and 2014: (in thousands) December 31, 2015 December 31, 2014 Accrued compensation $ 1,589 $ 2,915 Accrued expenses - other 1,414 1,098 Other liabilities 1,508 1,570 $ 4,511 $ 5,583

DEBT (Tables)

DEBT (Tables)	12 Months Ended
	Dec. 31, 2015
DEBT [Abstract]
Schedule of Debt	Debt consists of the following: (in thousands) December 31, 2015 December 31, 2014 Line of Credit $ 1,076 $ - Unsecured term loan 154 163 Notes Payable - DFS 452 - Notes Payable - MedTech (net of $111,000 in debt issue costs) 4,689 - Notes Payable - related parties 963 1,018 Subtotal 7,334 1,181 Less: current portion (1,485 ) (1,181 ) $ 5,849 $ -
Schedule of Amounts Payable by the Company Under Various Debt Obligations	Total amounts payable by the Company under its various debt obligations outstanding as of December 31, 2015 during the next five years are: (in thousands) Years ending December 31, 2016 $ 1,485 2017 197 2018 - 2019 5,763 Total $ 7,445

OPTION PLANS (Tables)

OPTION PLANS (Tables)	12 Months Ended
	Dec. 31, 2015
OPTION PLANS [Abstract]
Stock Option and Stock Grant Activity Under All The Plans	Stock option activity under all the plans for the year ended December 31, 2015 is summarized as follows: Outstanding Options Shares Available for Future Issuance Number of Shares Range of Exercise Price per Share Weighted Average Exercise Price Balance at December 31, 2014 - 951,912 $ 0.12 - $0.58 $ 0.17 Options granted - Options exercised - Options canceled under 2004 Plan - (51,912 ) $ 0.58 Balance at December 31, 2015 - 900,000 $ 0.12 - $0.22 $ 0.15
Stock Options Outstanding and Exercisable	The following table summarizes information about stock options outstanding and exercisable at December 31, 2015: Options Outstanding Options Exercisable Number Outstanding at December 31, 2015 Weighted Average Remaining Contractual Life (yrs.) Weighted Average Exercise Price Number Exercisable at December 31, 2015 Weighted Average Exercise Price Range of Exercise Prices $ 0.12 - $0.22 900,000 1.1 $ 0.15 900,000 $ 0.15
Schedule of Non-vested Restricted Shares for the Year	The following table summarizes non-vested restricted shares for the year ended December 31, 2015: Shares Available for Future Issuance Unvested shares Weighted Average Grant Date Fair Value Balance at December 31, 2014 7,241,234 565,000 $ 0.27 Granted (3,742,500 ) 3,742,500 $ 0.18 Vested (1,474,519 ) $ 0.21 Forfeited 5,481 (5,481 ) $ 0.18 Balance at December 31, 2015 3,504,215 2,827,500 $ 0.18

BUSINESS COMBINATION (Tables)

BUSINESS COMBINATION (Tables)	12 Months Ended
	Dec. 31, 2015
Business Acquisition [Line Items]
Business Acquisition Proforma Information	The following unaudited supplemental pro forma information presents the financial results as if the acquisitions of Genwell and NetWolves had occurred January 1, 2013, and January 1, 2014, respectively. (in thousands) Year ended December 31, 2015 December 31, 2014 (unaudited) (unaudited) Revenue $ 70,234 $ 64,552 Net income 4,007 152 Basic earnings per share $ 0.03 $ 0.00 Diluted earnings per share $ 0.03 $ 0.00
Genwell Instruments Co. Ltd. [Member]
Business Acquisition [Line Items]
Estimated Fair Values of the Net Assets Acquired	The following table summarizes the fair values of the net assets acquired: ( in thousands Cash and cash equivalents $ 113 Accounts receivable and other current assets 2 Property and equipment 3 Intangible assets 2,033 Net assets acquired $ 2,151
NetWolves, LLC [Member]
Business Acquisition [Line Items]
Estimated Fair Values of the Net Assets Acquired	The following table summarizes the current allocation of the assets acquired and liabilities assumed based on their preliminary estimated fair values and current measurement period adjustments as follows: ( in thousands Assets acquired/(liabilities assumed) As initially reported Measurement period adjustments As adjusted Cash and cash equivalents $ 733 $ - $ 733 Accounts receivable and other current assets 1,638 (103 ) 1,535 Other assets 50 - 50 Property and equipment 2,359 - 2,359 Accounts payable and other current liabilities (4,382 ) - (4,382 ) Long term debt (1,701 ) - (1,701 ) Goodwill and other intangibles 19,303 (4,928 ) 14,375 Customer-related intangibles - 5,031 5,031 Total $ 18,000 $ - $ 18,000

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2015
INCOME TAXES [Abstract]
Summary of Geographical Breakdown of Income before Provision for Income Taxes	The following is a geographical breakdown of income before the provision for income taxes: (in thousands) Year ended December 31, 2015 2014 Domestic 4,405 1,642 Foreign (626 ) (387 ) Income before provision for income taxes 3,779 1,255
Summary of Provision for Income Taxes	The provision for income taxes consisted of the following: (in thousands) Year ended December 31, 2015 2014 Current provision (benefit) Federal 92 54 State 208 45 Foreign (10 ) 28 Total current provision 290 127 Deferred benefit Federal (284 ) - State (50 ) - Foreign - - Total deferred benefit (334 ) - Total (benefit) provision for income taxes (44 ) 127 Effective income tax rate -1.16 % 10.14 %
Reconciliation of Effective Income Tax Rate to Federal Statutory Rate	The following is a reconciliation of the effective income tax rate to the federal statutory rate: For the year ended December 31, 2015 December 31, 2014 % % Federal statutory rate 34.00 34.00 State income taxes 8.99 6.00 Change in valuation allowance relating to operations (8.84 ) - Utilizations of net operating loss carryforward (42.40 ) (40.00 ) Foreign taxes (0.28 ) 2.28 Alternative minimum tax 2.37 4.28 Other 5.00 3.58 (1.16 ) 10.14
Schedule of Deferred Tax Assets and Deferred Tax Liabilities	The components of our deferred tax assets and liabilities are summarized as follows: (in thousands) December 31, 2015 December 31, 2014 Deferred Tax Assets: Net operating loss carryforwards $ 14,076 $ 16,014 Depreciation and amortization 138 219 Stock-based compensation 59 33 Allowance for doubtful accounts 53 14 Reserve for obsolete inventory 364 301 Tax credits 549 381 Expense accruals 442 315 Deferred revenue 1,348 1,267 Total gross deferred taxes 17,029 18,544 Valuation allowance (16,170 ) (18,544 ) Net deferred tax assets 859 - Deferred Tax Liabilities: Deferred commissions (299 ) - Goodwill (226 ) - Differences in timing of revenue recognition (112 ) (112 ) Total deferred tax liabilities (637 ) (112 ) Total deferred tax assets (liabilities) 222 (112 ) Recorded as: Non-current deferred tax assets (in other assets) 334 - Non-current deferred tax liabilities (112 ) (112 ) Total deferred tax assets (liabilities) $ 222 $ (112 )
Schedule of Valuation Allowance Activity	The activity in the valuation allowance is set forth below: (in thousands) 2015 2014 Valuation allowance, January 1, $ 18,544 $ 19,041 Partial release of allowance (560 ) - Change in valuation allowance (1,814 ) (497 ) Valuation allowance, December 31, $ 16,170 $ 18,544

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2015
COMMITMENTS AND CONTINGENCIES [Abstract]
Future Rental Payments Under Operating Leases	Future rental payments under these operating leases aggregate approximately as follows: For the years ended December 31, (in thousands) Vehicles Facilities Equipment Total 2016 $ 288 $ 236 $ 127 $ 651 2017 167 139 10 316 2018 41 123 - 164 2019 - 125 - 125 2020 - 127 - 127 Thereafter - 130 130 Total $ 496 $ 880 $ 137 $ 1,513

DESCRIPTION OF BUSINESS (Detail

DESCRIPTION OF BUSINESS (Details)	12 Months Ended
	Dec. 31, 2015SubsidiaryEmployeesStateCompany
DESCRIPTION OF BUSINESS [Abstract]
Number of wholly-owned subsidiaries | Subsidiary	3
Number of sales professionals | Employees	90
Number of contiguous states in which VasoHealthcare has been appointed exclusive representative for GE Healthcare Diagnostic Imaging products | State	48
Number of Chinese operating companies acquired | Company	2
Noncontrolling interest	49.90%

SUMMARY OF SIGNIFICANT ACCOUN43

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)SourcesElements	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
Variable Interest Entity [Line Items]
Cash and cash equivalents	$ 2,160	$ 9,128	$ 7,961
Total net revenue	57,082	34,954
Net loss	3,823	1,128
Biox [Member]
Variable Interest Entity [Line Items]
Cash and cash equivalents	104	159
Total assets	1,168	1,047
Total liabilities	1,007	878
Total net revenue	1,715	1,744
Net loss	$ (35)	$ (373)
IT Segment [Member]
Revenue and Expense Recognition for the IT Segment [Abstract]
Sources of revenue | Sources	2
IT Segment [Member] | Software Products [Member] | Minimum [Member]
Revenue and Expense Recognition for the IT Segment [Abstract]
Term of software license arrangements	3 years
IT Segment [Member] | Software Products [Member] | Maximum [Member]
Revenue and Expense Recognition for the IT Segment [Abstract]
Term of software license arrangements	5 years
Equipment Segment [Member] | Medical Equipment [Member]
Revenue and Expense Recognition for the IT Segment [Abstract]
Number of elements | Elements	3
Service period for recognizing service revenue	1 year
Product warranty period	1 year
Equipment Segment [Member] | Medical Equipment [Member] | Minimum [Member]
Revenue and Expense Recognition for the IT Segment [Abstract]
Service period for recognizing service revenue not covered by service arrangement	1 year
Equipment Segment [Member] | Medical Equipment [Member] | Maximum [Member]
Revenue and Expense Recognition for the IT Segment [Abstract]
Service period for recognizing service revenue not covered by service arrangement	4 years

SUMMARY OF SIGNIFICANT ACCOUN44

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Share-Based Compensation (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Intrinsic value of options exercised	$ 0	$ 58,500
Share-based compensation expense	342,000	$ 390,000
Unrecognized expense related to existing share-based arrangements	$ 402,000
Period over which unrecognized expense is to be recognized	3 years 6 months
Reconciliation of basic to diluted shares used in the earnings per share calculation [Abstract]
Basic weighted average shares outstanding (in shares)	156,707,000	155,362,000
Dilutive effect of options and unvested restricted shares	482,000	670,000
Diluted weighted average shares outstanding (in shares)	157,189,000	156,032,000
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested (in shares)	1,474,519
Restricted Stock [Member] | Non-officer Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	1,592,500	230,000
Value of stock granted	$ 270,700	$ 49,100
Vesting period	4 years
Restricted Stock [Member] | Officers [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	2,000,000	450,000
Value of stock granted	$ 367,000	$ 157,500
Vesting period	4 years
Vested (in shares)	1,000,000
Restricted Stock [Member] | Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	150,000	500,000
Value of stock granted	$ 30,000	$ 175,000
Restricted Stock [Member] | Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of shares vested	$ 277,000	$ 376,000
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	0	0
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Common stock equivalents excluded from computation of diluted earnings per share (in shares)	300,000	52,000

SUMMARY OF SIGNIFICANT ACCOUN45

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Accounts Receivable, Net (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Accounts Receivable, Net [Abstract]
FDIC coverage	$ 250,000
FDIC uninsured amount	317,000	$ 410,000
Allowance for Doubtful Accounts Receivable [Roll Forward]
Beginning Balance	4,571,000	3,764,000
Provision for losses on accounts receivable	140,000	11,000
Direct write-offs, net of recoveries	(48,000)	(156,000)
Commission adjustments	(800,000)	952,000
Ending Balance	$ 3,863,000	4,571,000
Property, Plant and Equipment [Line Items]
Estimated probability of deferred tax asset being realized	50.00%
Accrued income tax interest and penalties	$ 0	0
Unrecognized tax benefits	$ 0	0
General period of examination of tax filings by tax authorities	5 years
Foreign currency translation gain (loss)	$ (174,000)	(14,000)
Finite-Lived Intangible Assets [Line Items]
Capitalized costs related to goodwill	14,375,000	0
Capitalized software development costs	220,000	263,000
Recently Issued Accounting Pronouncements [Abstract]
Debt issuance costs	130,000
Amortized to interest expense	$ 19,000	$ 0
Minimum [Member]
Accounts Receivable, Net [Abstract]
Threshold period for receivables due	30 days
Property, Plant and Equipment [Line Items]
Estimated useful lives	2 years
Amortization period of EECP systems	2 years
Finite-Lived Intangible Assets [Line Items]
Useful life of intangible assets	5 years
Maximum [Member]
Accounts Receivable, Net [Abstract]
Threshold period for receivables due	90 days
Property, Plant and Equipment [Line Items]
Estimated useful lives	8 years
Amortization period of EECP systems	5 years
Finite-Lived Intangible Assets [Line Items]
Useful life of intangible assets	10 years
NetWolves, LLC [Member]
Finite-Lived Intangible Assets [Line Items]
Capitalized Computer Software, Additions	$ 5,031,000
Capitalized costs related to goodwill	$ 14,375,000
GE Healthcare [Member] | Sales Representation Segment [Member]
Concentration Risk [Line Items]
Concentration risk	100.00%

SEGMENT REPORTING (Details)

SEGMENT REPORTING (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)Segment	Dec. 31, 2014USD ($)
SEGMENT REPORTING [Abstract]
Number of segments | Segment	3
Segment Reporting Information [Line Items]
Revenues from external customers	$ 57,082	$ 34,954
Operating income (loss)	3,939	1,063
Total assets	50,418	40,991
Accounts and other receivables, net	11,620	15,273
Deferred commission expense	2,252	2,200
Other assets	4,315	5,617
Corporate [Member]
Segment Reporting Information [Line Items]
Revenues from external customers	0	0
Operating income (loss)	(1,711)	(1,567)
Total assets	2,551	8,952
Accounts and other receivables, net	0	0
Deferred commission expense	0	0
Other assets	444	13
Professional Sales Service Segment [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Revenues from external customers	31,584	30,236
Operating income (loss)	10,024	5,997
Total assets	13,854	21,966
Accounts and other receivables, net	8,249	14,306
Deferred commission expense	2,121	2,200
Other assets	2,983	4,888
IT Segment [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Revenues from external customers	21,149	48
Operating income (loss)	(1,930)	(539)
Total assets	25,278	61
Accounts and other receivables, net	2,546	52
Deferred commission expense	131	0
Other assets	296	0
Equipment Segment [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Revenues from external customers	4,349	4,670
Operating income (loss)	(2,444)	(2,828)
Total assets	8,735	10,012
Accounts and other receivables, net	825	915
Deferred commission expense	0	0
Other assets	$ 592	$ 716

SEGMENT REPORTING, Revenue from

SEGMENT REPORTING, Revenue from External Customers and Long Lived Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
Total	$ 57,082	$ 34,954
Domestic (United States) [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total	53,860	32,905
Non-domestic (Foreign) [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total	$ 3,222	$ 2,049
GE Healthcare [Member] | Sales Revenue, Net [Member]
Revenue, Major Customer [Line Items]
Percentage of revenue	55.00%	87.00%

SEGMENT REPORTING, Concentratio

SEGMENT REPORTING, Concentration Risk (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Concentration Risk [Line Items]
Accounts and other receivables	$ 11,620	$ 15,273
Accounts and Other Receivables [Member] | Credit Concentration Risk [Member] | GE Healthcare [Member]
Concentration Risk [Line Items]
Accounts and other receivables	$ 8,100	$ 14,200
Percentage of accounts and other receivables	69.00%	93.00%

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Assets [Abstract]
Cash equivalents invested in money market funds (included in cash and cash equivalents)	$ 2	$ 8,149
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets [Abstract]
Cash equivalents invested in money market funds (included in cash and cash equivalents)	2	8,149
Significant Other Observable Inputs (Level 2) [Member]
Assets [Abstract]
Cash equivalents invested in money market funds (included in cash and cash equivalents)	0	0
Significant Unobservable Inputs (Level 3) [Member]
Assets [Abstract]
Cash equivalents invested in money market funds (included in cash and cash equivalents)	$ 0	$ 0

ACCOUNTS AND OTHER RECEIVABLE50

ACCOUNTS AND OTHER RECEIVABLES (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
ACCOUNTS AND OTHER RECEIVABLES [Abstract]
Trade receivables	$ 15,252	$ 19,734
Due from employees	231	110
Allowance for doubtful accounts and commission adjustments	(3,863)	(4,571)
Accounts and other receivables, net	$ 11,620	$ 15,273

INVENTORIES, NET (Details)

INVENTORIES, NET (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
INVENTORIES, NET [Abstract]
Raw materials	$ 497,000	$ 583,000
Work in process	392,000	679,000
Finished goods	1,074,000	636,000
Inventories, net	1,963,000	1,898,000
Reserves for slow moving inventory	$ 861,000	$ 815,000

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 5,864,000	$ 1,663,000
Less: accumulated depreciation	(2,976,000)	(1,397,000)
Property and equipment, net	2,888,000	266,000
Depreciation expense	505,000	187,000
Office, Laboratory and Other Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,586,000	1,114,000
Equipment Furnished for Customer or Clinical Uses [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	3,992,000	376,000
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 286,000	$ 173,000

GOODWILL AND OTHER INTANGIBLE53

GOODWILL AND OTHER INTANGIBLES (Details)	12 Months Ended
	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2015USD ($)Patent	May. 29, 2015USD ($)	Dec. 31, 2014USD ($)
Change in carrying amount of goodwill [Roll Forward]
Goodwill, Beginning Balance	$ 3,288,000	$ 3,303,000
Foreign currency translation	(179,000)	(15,000)
Acquisition of Netwolves	14,375,000	0
Goodwill, Ending Balance	17,484,000	3,288,000
Finite-Lived Intangible Assets [Line Items]
Goodwill	17,484,000	3,288,000	$ 17,484,000		$ 3,288,000
Number of patents | Patent			11
Number of utility patents | Patent			8
Number of design patents | Patent			3
Other intangible assets, net [Abstract]
Intangible assets, net			$ 6,977,000		2,826,000
Amortization expense	1,035,000	$ 280,000
Amortization Expense, Fiscal Year Maturity [Abstract]
2,016			1,186,000
2,017			1,084,000
2,018			929,000
2,019			807,000
2,020			682,000
IT Segment [Member]
Change in carrying amount of goodwill [Roll Forward]
Goodwill, Ending Balance	14,375,000
Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 14,375,000		$ 14,375,000
NetWolves [Member]
Finite-Lived Intangible Assets [Line Items]
Goodwill				$ 14,375,000
Number of patents | Patent			1
Chinese Subsidiary [Member]
Finite-Lived Intangible Assets [Line Items]
Number of invention patents | Patent			14
Number of utility patents | Patent			14
Number of design patents | Patent			14
Customer-Related [Member]
Finite-Lived Intangible Assets [Line Items]
Useful life of patents	7 years
Other intangible assets, net [Abstract]
Costs			$ 5,831,000		800,000
Accumulated amortization			(926,000)		(381,000)
Intangible assets, net			4,905,000		419,000
Patents and Technology [Member]
Other intangible assets, net [Abstract]
Costs			2,423,000		2,489,000
Accumulated amortization			(806,000)		(549,000)
Intangible assets, net			1,617,000		1,940,000
Software [Member]
Finite-Lived Intangible Assets [Line Items]
Useful life of patents	5 years
Other intangible assets, net [Abstract]
Costs			1,182,000		962,000
Accumulated amortization			(727,000)		(495,000)
Intangible assets, net			$ 455,000		$ 467,000
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Useful life of patents	10 years
Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Useful life of patents	8 years

OTHER ASSETS (Details)

OTHER ASSETS (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
OTHER ASSETS [Abstract]
Deferred commission expense - noncurrent	$ 2,083	$ 2,988
Trade receivables - noncurrent	1,025	2,171
Other	1,207	458
Total	$ 4,315	$ 5,617

DEFERRED REVENUE (Details)

DEFERRED REVENUE (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Changes in deferred revenue [Roll Forward]
Deferred revenue at beginning of period	$ 22,532	$ 18,019
Deferred revenue at end of period	18,516	22,532
Less: current portion	9,480	9,882
Long-term deferred revenue at end of period	9,036	12,650
Deferred Extended Service Contracts [Member]
Changes in deferred revenue [Roll Forward]
Additions	654	912
Recognized as revenue	(857)	(869)
Deferred In-Service and Training [Member]
Changes in deferred revenue [Roll Forward]
Additions	18	40
Recognized as revenue	(15)	(50)
Deferred Service Arrangements [Member]
Changes in deferred revenue [Roll Forward]
Additions	40	88
Recognized as revenue	(69)	(96)
Deferred Commission Revenues [Member]
Changes in deferred revenue [Roll Forward]
Additions	10,674	17,992
Recognized as revenue	$ (14,461)	$ (13,504)

ACCRUED EXPENSES AND OTHER LI56

ACCRUED EXPENSES AND OTHER LIABILITIES (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
ACCRUED EXPENSES AND OTHER LIABILITIES [Abstract]
Accrued compensation	$ 1,589	$ 2,915
Accrued expenses - other	1,414	1,098
Other liabilities	1,508	1,570
Accrued expenses and other liabilities	$ 4,511	$ 5,583

RELATED-PARTY TRANSACTIONS (Det

RELATED-PARTY TRANSACTIONS (Details)	May. 29, 2015USD ($)	Aug. 06, 2014USD ($)	Aug. 06, 2014CNY (¥)	Jun. 30, 2015USD ($)	Dec. 31, 2015USD ($)Director	Dec. 31, 2014USD ($)	Aug. 28, 2015	Aug. 27, 2015	Jul. 31, 2015USD ($)	May. 31, 2015CNY (¥)
Related Party Transaction [Line Items]
Related party transaction, amount of purchase price					$ 18,000,000	$ 0
Secured subordinated promissory note					4,886,000	0
Related party transaction, amount borrowed					4,800,000	163,000
Unsecured notes payable assumed					963,000	0
Unsecured loans payable					33,000	1,039,000
Note [Member]
Related Party Transaction [Line Items]
Secured subordinated promissory note	$ 3,800,000			$ 750,000					$ 250,000
VSK Medical Limited [Member]
Related Party Transaction [Line Items]
Contribution to related parties					100,000
Receivables due from related parties					189,000
Gain from joint venture					394,000
NetWolves, LLC [Member]
Related Party Transaction [Line Items]
Related party transaction, amount of purchase price	14,200,000				14,200,000
Consideration for acquisition	18,000,000				18,000,000
NetWolves, LLC [Member] | Note [Member]
Related Party Transaction [Line Items]
Secured subordinated promissory note	$ 3,800,000				3,800,000
Related party transaction, amount borrowed					$ 4,800,000
Debt instrument, interest rate					9.00%
Director - David Lieberman [Member] | NetWolves, LLC [Member]
Related Party Transaction [Line Items]
Related party transaction, ownership interest					5.70%
Related party transaction, additional ownership interest					13.50%
Director - Peter Castle [Member] | NetWolves, LLC [Member]
Related Party Transaction [Line Items]
Related party transaction, ownership interest					10.40%
Directors or Members of Their Family [Member] | NetWolves, LLC [Member]
Related Party Transaction [Line Items]
Related party transaction, amount borrowed				2,200,000
Number of directors | Director					6
Director - Joshua Markowitz [Member] | NetWolves, LLC [Member]
Related Party Transaction [Line Items]
Related party transaction, amount borrowed				$ 100,000
Beckman, Lieberman & Barandes, LLP [Member]
Related Party Transaction [Line Items]
Fees for legal services					$ 304,000	240,000
Genwell Instruments Co. Ltd. [Member]
Related Party Transaction [Line Items]
Consideration for acquisition		$ 2,151,000	¥ 13,250,000
Related party interest in acquired entity					80.90%
Genwell Instruments Co. Ltd. [Member] | Note [Member]
Related Party Transaction [Line Items]
Debt instrument, face amount | ¥										¥ 6,250,000
Debt instrument, interest rate							9.00%	5.00%
President - (LET) & President of Biox Instruments Company Ltd. [Member]
Related Party Transaction [Line Items]
Unsecured notes payable assumed					$ 993,000	1,036,000
Officers of Biox [Member]
Related Party Transaction [Line Items]
Advances due from officers					20,000	21,000
President (LET) [Member]
Related Party Transaction [Line Items]
Unsecured loans payable					$ 3,000	$ 3,000

DEBT (Details)

DEBT (Details)	Jul. 31, 2015USD ($)	Jun. 30, 2015USD ($)	May. 29, 2015USD ($)Director	Nov. 30, 2014USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Nov. 30, 2016	Nov. 30, 2014CNY (¥)
Summary of debt [Abstract]
Line of credit					$ 1,076,000	$ 0
Unsecured term loan					154,000	163,000
Subtotal					7,334,000	1,181,000
Less: current portion					(1,485,000)	(1,181,000)
Total					5,849,000	0
Unsecured term loan				$ 163,000				¥ 1,000,000
Loan term				1 year
Interest rate				6.72%				6.72%
Secured subordinated promissory note					4,886,000	0
Aggregate amount used to acquire note					4,800,000	163,000
Debt issuance costs					130,000
Schedule of amounts payable by the company under various debt obligations [Abstract]
2,016					1,485,000
2,017					197,000
2,018					0
2,019					5,763,000
Total					$ 7,445,000
Subsequent Event [Member]
Summary of debt [Abstract]
Interest rate							5.22%
Line of Credit [Member]
Summary of debt [Abstract]
Line of credit facility, maximum borrowing capacity before replacement	$ 2,000,000
Line of credit facility, maximum borrowing capacity amount	$ 3,000,000
Interest rate effective percentage					2.68%
Amount of line of credit drawn					$ 1,100,000
Line of Credit [Member] | LIBOR [Member]
Summary of debt [Abstract]
Interest rate percentage	2.25%
DFS [Member]
Summary of debt [Abstract]
Notes payable					452,000	0
MedTech [Member]
Summary of debt [Abstract]
Notes payable					4,689,000	0
Debt issuance costs					111,000
Related Parties [Member]
Summary of debt [Abstract]
Notes payable					$ 963,000	$ 1,018,000
Note [Member]
Summary of debt [Abstract]
Loan term					36 months
Fixed bear interest rate					6.55%
Secured subordinated promissory note	$ 250,000	$ 750,000	$ 3,800,000
Debt instrument, interest rate					9.00%
Note [Member] | Six Directors [Member]
Summary of debt [Abstract]
Aggregate amount used to acquire note			$ 1,950,000
Number of directors | Director			6
Note [Member] | Director and Director's Relative [Member]
Summary of debt [Abstract]
Aggregate amount used to acquire note		$ 250,000

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
STOCKHOLDERS' EQUITY [Abstract]
Minimum percentage of net profit transfer to general reserve	10.00%
Percentage of accumulative reserve to determine transfer of profit	50.00%
Statutory reserves	$ 35,000	$ 35,000
Percentage of withholding tax on distribution of dividend	10.00%

OPTION PLANS (Details)

OPTION PLANS (Details)	1 Months Ended		12 Months Ended
	Dec. 31, 2001shares	Jul. 31, 2000shares	Dec. 31, 2015EquityProgram$ / sharesshares	Dec. 31, 2014shares	Jul. 31, 1999shares
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted shares of common stock granted (in shares)			0	0
1999 Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Company reserved an aggregate shares of common stock (in shares)	5,000,000	3,000,000			2,000,000
Fair market value of the common stock on the date of the grant			100.00%
Minimum percentage of voting power			10.00%
Combined voting power of all voting stock of the entity			110.00%
Term of option			10 years
Increased number of shares authorized for issuance (in shares)	2,000,000	1,000,000
Expiration date			Jul. 12, 2009
1999 Stock Option Plan [Member] | Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options canceled (in shares)			0
2004 Stock Option and Stock Issuance Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Company reserved an aggregate shares of common stock (in shares)			2,500,000
Minimum percentage of voting power			10.00%
Combined voting power of all voting stock of the entity			110.00%
Term of option			10 years
Expiration date			Jul. 12, 2014
Number equity programs | EquityProgram			2
2004 Stock Option and Stock Issuance Plan [Member] | Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options canceled (in shares)			51,912
2004 Stock Option and Stock Issuance Plan [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options to purchase shares of common stock retired or cancelled, exercise price (in dollars per share) | $ / shares			$ 0.57
2004 Stock Option and Stock Issuance Plan [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options to purchase shares of common stock retired or cancelled, exercise price (in dollars per share) | $ / shares			$ 0.58
2010 Stock Option and Stock Issuance Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Company reserved an aggregate shares of common stock (in shares)			5,000,000
Fair market value of the common stock on the date of the grant			100.00%
Minimum percentage of voting power			10.00%
Combined voting power of all voting stock of the entity			110.00%
Term of option			5 years
Number equity programs | EquityProgram			2
Options granted (in shares)			0
Number of shares withheld for withholding taxes (in shares)			3,387
2013 Stock Option and Stock Issuance Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Company reserved an aggregate shares of common stock (in shares)			7,500,000
Number equity programs | EquityProgram			2
Options granted (in shares)				0
2013 Stock Option and Stock Issuance Plan [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted shares of common stock granted (in shares)			3,742,500
Restricted shares of common stock withheld for withholding taxes (in shares)			1,644

OPTION PLANS, Stock Option Acti

OPTION PLANS, Stock Option Activity (Details)	12 Months Ended
	Dec. 31, 2015$ / sharesshares
Restricted Stock [Member]
Shares available for future issuance [Roll Forward]
Balance, beginning of period (in shares)	7,241,234
Options granted (in shares)	(3,742,500)
Options canceled (in shares)	5,481
Balance, end of period (in shares)	3,504,215
All Stock Option Plans [Member]
Range of exercise price per share [Roll Forward]
Balance, end of period (in dollars per share) | $ / shares	$ 0.15
All Stock Option Plans [Member] | Stock Options [Member]
Shares available for future issuance [Roll Forward]
Balance, beginning of period (in shares)	0
Options granted (in shares)	0
Options exercised (in shares)	0
Balance, end of period (in shares)	0
Number of shares [Roll Forward]
Balance, beginning of period (in shares)	957,912
Balance, end of period (in shares)	900,000
Range of exercise price per share [Roll Forward]
Balance, beginning of period (in dollars per share) | $ / shares	$ 0.17
All Stock Option Plans [Member] | Minimum [Member] | Stock Options [Member]
Range of exercise price per share [Roll Forward]
Balance, beginning of period (in dollars per share) | $ / shares	0.12
Balance, end of period (in dollars per share) | $ / shares	0.12
All Stock Option Plans [Member] | Maximum [Member] | Stock Options [Member]
Range of exercise price per share [Roll Forward]
Balance, beginning of period (in dollars per share) | $ / shares	0.58
Balance, end of period (in dollars per share) | $ / shares	$ 0.22
1999 Stock Option Plan [Member] | Stock Options [Member]
Number of shares [Roll Forward]
Options canceled (in shares)	0
2004 Stock Option and Stock Issuance Plan [Member] | Stock Options [Member]
Shares available for future issuance [Roll Forward]
Options canceled (in shares)	0
Number of shares [Roll Forward]
Options canceled (in shares)	(51,912)
Range of exercise price per share [Roll Forward]
Weighted average exercise price, shares canceled (in dollars per share) | $ / shares	$ 0.58
Exercise Price Range $0.12 and $0.22 [Member]
Stock options outstanding and exercisable [Abstract]
Range of exercise prices, lower range limit (in dollars per share) | $ / shares	0.12
Range of exercise prices, upper range limit (in dollars per share) | $ / shares	$ 0.22
Options outstanding, number outstanding at December 31, 2015 (in shares)	900,000
Options outstanding, weighted average remaining contractual life	1 year 1 month 6 days
Options outstanding, weighted average exercise price (in dollars per share) | $ / shares	$ 0.15
Options exercisable, number exercisable at December 31, 2015 (in shares)	900,000
Options exercisable, weighted average exercise price (in dollars per share) | $ / shares	$ 0.15

OPTION PLANS, Non-vested Restri

OPTION PLANS, Non-vested Restricted Shares (Details)	12 Months Ended
	Dec. 31, 2015USD ($)$ / sharesshares
Restricted Stock [Member]
Shares available for future issuance [Roll Forward]
Balance, beginning of period (in shares)	7,241,234
Options granted (in shares)	(3,742,500)
Forfeited (in shares)	5,481
Balance, end of period (in shares)	3,504,215
Unvested shares [Roll Forward]
Balance, beginning of period (in shares)	565,000
Granted (in shares)	3,742,500
Vested (in shares)	(1,474,519)
Forfeited (in shares)	(5,481)
Balance, end of period (in shares)	2,827,500
Weighted average grant date fair value [Abstract]
Balance, beginning of period (in dollars per share) | $ / shares	$ 0.27
Granted (in dollars per share) | $ / shares	0.18
Vested (in dollars per share) | $ / shares	0.21
Forfeited (in dollars per share) | $ / shares	0.18
Balance, end of period (in dollars per share) | $ / shares	$ 0.18
All Stock Option Plans [Member] | Stock Options [Member]
Shares available for future issuance [Roll Forward]
Balance, beginning of period (in shares)	0
Options granted (in shares)	0
Balance, end of period (in shares)	0
Stock options outstanding and exercisable [Abstract]
Remaining authorized shares of common stock (in shares)	75,143,396
Intrinsic value of options outstanding and exercisable | $	$ 48,000
2004 Stock Option and Stock Issuance Plan [Member] | Stock Options [Member]
Shares available for future issuance [Roll Forward]
Forfeited (in shares)	0

BUSINESS COMBINATION (Details)

BUSINESS COMBINATION (Details)	May. 29, 2015USD ($)	Dec. 31, 2015USD ($)$ / shares	Dec. 31, 2014USD ($)$ / shares	Jul. 31, 2015USD ($)	Jun. 30, 2015USD ($)	May. 31, 2015USD ($)	May. 31, 2015CNY (¥)	Aug. 06, 2014USD ($)	Aug. 06, 2014CNY (¥)	Dec. 31, 2013USD ($)
Business Acquisition [Line Items]
Business combination, cash paid		$ 18,000,000	$ 0
Business combination, issue of notes		4,886,000	0
Debt issuance costs		130,000
Revenue		57,082,000	34,954,000
Net loss		3,823,000	1,128,000
Estimated fair values of net assets acquired [Abstract]
Goodwill and other intangibles		17,484,000	3,288,000							$ 3,303,000
Note [Member]
Business Acquisition [Line Items]
Business combination, issue of notes	$ 3,800,000			$ 250,000	$ 750,000
Genwell Instruments Co. Ltd. [Member]
Estimated fair values of net assets acquired [Abstract]
Cash and cash equivalents								$ 113,000
Accounts receivable and other current assets								2,000
Property and equipment								3,000
Customer-related intangibles								2,033,000
Total								$ 2,151,000
Genwell Instruments Co. Ltd. [Member] | Note [Member]
Business Acquisition [Line Items]
Business combination, issue of notes | ¥									¥ 13,250,000
Debt instrument, modified face amount						$ 1,015,000	¥ 6,250,000
Debt instrument, interest rate						5.00%	5.00%
NetWolves, LLC [Member]
Business Acquisition [Line Items]
Consideration for acquisition	18,000,000	18,000,000
Business combination, cash paid	14,200,000	14,200,000
Acquisition-related legal costs		100,000
Debt issuance costs		130,000
Revenue		20,661,000
Net loss		(125,000)
Estimated fair values of net assets acquired [Abstract]
Cash and cash equivalents	733,000
Accounts receivable and other current assets	1,535,000
Other assets	50,000
Property and equipment	2,359,000
Accounts payable and other current liabilities	(4,382,000)
Long term debt	(1,701,000)
Goodwill and other intangibles	14,375,000
Customer-related intangibles	5,031,000
Total	18,000,000
NetWolves, LLC [Member] | Note [Member]
Business Acquisition [Line Items]
Business combination, issue of notes	3,800,000	$ 3,800,000
Debt instrument, interest rate		9.00%
NetWolves, LLC [Member] | As Initially Reported [Member]
Estimated fair values of net assets acquired [Abstract]
Cash and cash equivalents	733,000
Accounts receivable and other current assets	1,638,000
Other assets	50,000
Property and equipment	2,359,000
Accounts payable and other current liabilities	(4,382,000)
Long term debt	(1,701,000)
Goodwill and other intangibles	19,303,000
Customer-related intangibles	0
Total	18,000,000
NetWolves, LLC [Member] | Measurement Period Adjustments [Member]
Estimated fair values of net assets acquired [Abstract]
Cash and cash equivalents	0
Accounts receivable and other current assets	(103,000)
Other assets	0
Property and equipment	0
Accounts payable and other current liabilities	0
Long term debt	0
Goodwill and other intangibles	(4,928,000)
Customer-related intangibles	5,031,000
Total	$ 0
Genwell and Netwolves [Member]
Business acquisition proforma information [Abstract]
Revenue		$ 70,234,000	64,552,000
Net income		$ 4,007,000	$ 152,000
Basic earnings per share (in dollars per share) | $ / shares		$ 0.03	$ 0
Diluted earnings per share (in dollars per share) | $ / shares		$ 0.03	$ 0

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Summary of Geographical Breakdown of Income before Provision for Income Taxes [Abstract]
Domestic	$ 4,405,000	$ 1,642,000
Foreign	(626,000)	(387,000)
Income before income taxes	3,779,000	1,255,000
Current provision (benefit) [Abstract]
Federal	92,000	54,000
State	208,000	45,000
Foreign	(10,000)	28,000
Total current provision	290,000	127,000
Deferred benefit [Abstract]
Federal	(284,000)	0
State	(50,000)	0
Foreign	0	0
Total deferred benefit	(334,000)	0
Total (benefit) provision for income taxes	$ (44,000)	$ 127,000
Effective income tax rate	(1.16%)	10.14%
Reconciliation of the effective income tax rate to the federal statutory rate [Abstract]
Federal statutory rate	34.00%	34.00%
State income taxes	8.99%	6.00%
Change in valuation allowance relating to operations	(8.84%)	0.00%
Utilizations of net operating loss carryforward	(42.40%)	(40.00%)
Foreign taxes	(0.28%)	2.28%
Alternative minimum tax	2.37%	4.28%
Other	5.00%	3.58%
Total	(1.16%)	10.14%
Decrease in deferred tax assets	$ (1,515,000)
Decrease in valuation allowance	(2,374,000)
Deferred Tax Assets [Abstract]
Net operating loss carryforwards			$ 14,076,000	$ 16,014,000
Depreciation and amortization			138,000	219,000
Stock-based compensation			59,000	33,000
Allowance for doubtful accounts			53,000	14,000
Reserve for obsolete inventory			364,000	301,000
Tax credits			549,000	381,000
Expense accruals			442,000	315,000
Deferred revenue			1,348,000	1,267,000
Total gross deferred taxes			17,029,000	18,544,000
Valuation allowance	(18,544,000)	$ (18,544,000)	(16,170,000)	(18,544,000)
Net deferred tax assets			859,000	0
Deferred Tax Liabilities [Abstract]
Deferred commissions			(299,000)	0
Goodwill			(226,000)	0
Differences in timing of revenue recognition			(112,000)	(112,000)
Total deferred tax liabilities			(637,000)	(112,000)
Total deferred tax assets			222,000
Total deferred tax liabilities				(112,000)
Recorded as [Abstract]
Non-current deferred tax assets (in other assets)			334,000	0
Non-current deferred tax liabilities			(112,000)	(112,000)
Total deferred tax assets			222,000
Total deferred tax liabilities				$ (112,000)
Valuation allowance [Abstract]
Valuation allowance, beginning of period	18,544,000	19,041,000
Partial release of allowance	(560,000)	0
Change in valuation allowance	(1,814,000)	(497,000)
Valuation allowance, end of period	16,170,000	18,544,000
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	$ 0	$ 0
Foreign undistributed earnings			$ 7,500,000
Statutory rate	34.00%	34.00%
Federal and State [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	$ 35,000,000
Minimum [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards expiration date	Dec. 31, 2020
Maximum [Member]
Reconciliation of the effective income tax rate to the federal statutory rate [Abstract]
Federal statutory rate	35.00%
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards expiration date	Dec. 31, 2033
Statutory rate	35.00%

COMMITMENTS AND CONTINGENCIES65

COMMITMENTS AND CONTINGENCIES (Details)	12 Months Ended
	Dec. 31, 2015USD ($)LetterofCreditVendor	Dec. 31, 2014USD ($)
Sales representation agreement [Abstract]
Initial term of sales representation agreement	3 years
Amended term of sales representation agreement	5 years
Facility Leases [Abstract]
Lease agreement term expiring in September 2022	7 years
Lease agreement term expiring in May 2017	5 years
Vehicle Lease Agreement [Abstract]
Vehicles obtained under agreement leased period	36 months
Future rental payments under operating leases [Abstract]
2,016	$ 651,000
2,017	316,000
2,018	164,000
2,019	125,000
2,020	127,000
Thereafter	130,000
Total	1,513,000
Rental expense	$ 713,000	$ 620,000
Licensing and Support Service Agreement [Abstract]
Licensing and support service agreement term expires in December 2016	2 years
Licensing and support service charges	$ 195,000
President and Chief Executive Officer [Member]
Employment Agreements [Line Items]
Employment agreement period	3 years
Maximum cash payment under extended performance incentive plan	$ 375,000
Former President and Chief Executive Officer [Member]
Employment Agreements [Line Items]
Employment agreement period	3 years
Additional employment agreement period	1 year
Maximum cash payment under extended performance incentive plan	$ 350,000
Vehicles [Member]
Future rental payments under operating leases [Abstract]
2,016	288,000
2,017	167,000
2,018	41,000
2,019	0
2,020	0
Thereafter	0
Total	496,000
Facilities [Member]
Future rental payments under operating leases [Abstract]
2,016	236,000
2,017	139,000
2,018	123,000
2,019	125,000
2,020	127,000
Thereafter	130,000
Total	880,000
Equipment [Member]
Future rental payments under operating leases [Abstract]
2,016	127,000
2,017	10,000
2,018	0
2,019	0
2,020	0
Thereafter	0
Total	$ 137,000
Standby Letters of Credit [Member]
Line of Credit Facility [Line Items]
Number Of Letters Of Credit Agreement | LetterofCredit	2
Letters of credit	$ 270,500
Number of vendors | Vendor	2

401(K) PLAN (Details)

401(K) PLAN (Details)	12 Months Ended
	Dec. 31, 2015USD ($)Plan	Dec. 31, 2014USD ($)
401(K) PLAN [Abstract]
Number of defined contribution plans | Plan	2
Minimum term required for employees to participate in plan	6 months
Maximum annual voluntary contribution per plan participant	80.00%
Company's discretionary annual contributions | $	$ 95,000	$ 85,000