Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 12, 2022 | |
Cover [Abstract] | ||
Entity Registrant Name | VASO CORPORATION | |
Entity Central Index Key | 0000839087 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Jun. 30, 2022 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2022 | |
Entity Common Stock Shares Outstanding | 175,127,878 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 0-18105 | |
Entity Incorporation State Country Code | DE | |
Entity Tax Identification Number | 11-2871434 | |
Entity Interactive Data Current | Yes | |
Entity Address Address Line 1 | 137 Commercial St. | |
Entity Address Address Line 2 | Suite 200 | |
Entity Address City Or Town | Plainview | |
Entity Address State Or Province | NY | |
Entity Address Postal Zip Code | 11803 | |
City Area Code | 516 | |
Local Phone Number | 997-4600 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 15,436,000 | $ 6,025,000 |
Short-term investments | 448,000 | 629,000 |
Accounts and other receivables, net of an allowance for doubtful accounts and commission adjustments of $6,270 at June 30, 2022 and $5,804 at December 31, 2021 | 6,836,000 | 15,393,000 |
Receivables due from related parties | 342,000 | 66,000 |
Inventories | 1,597,000 | 1,147,000 |
Deferred commission expense | 3,576,000 | 3,549,000 |
Prepaid expenses and other current assets | 861,000 | 994,000 |
Total current assets | 29,096,000 | 27,803,000 |
Property and equipment, net of accumulated depreciation of $9,626 at June 30, 2022 and $10,512 at December 31, 2021 | 1,576,000 | 2,172,000 |
Opearting lease right of use assets | 1,635,000 | 915,000 |
Goodwill | 15,655,000 | 15,722,000 |
Intangibles, net | 1,735,000 | 2,041,000 |
Other assets, net | 2,574,000 | 2,446,000 |
Investment in EECP Global | 988,000 | 1,043,000 |
Deferred tax assets, net | 219,000 | 219,000 |
Total assets | 53,478,000 | 52,361,000 |
CURRENT LIABILITIES | ||
Accounts payable | 2,163,000 | 2,797,000 |
Accrued commissions | 1,465,000 | 2,705,000 |
Accrued expenses and other liabilities | 6,712,000 | 7,489,000 |
Finance lease liabilities - current | 190,000 | 222,000 |
Operating lease liabilities - current | 722,000 | 562,000 |
Sales tax payable | 733,000 | 719,000 |
Deferred revenue - current portion | 18,583,000 | 16,495,000 |
Notes payable - current portion | 8,000 | 8,000 |
Due to related party | 3,000 | 3,000 |
Total current liabilities | 30,579,000 | 31,000,000 |
LONG-TERM LIABILITIES | ||
Notes payable, net of current portion | 19,000 | 23,000 |
Finance lease liabilities, net of current portion | 128,000 | 218,000 |
Operating lease liabilities, net of current portion | 913,000 | 352,000 |
Deferred revenue, net of current portion | 8,514,000 | 8,470,000 |
Other long-term liabilities | 1,067,000 | 988,000 |
Total long-term liabilities | 10,641,000 | 10,051,000 |
STOCKHOLDERS' EQUITY | ||
Preferred stock, $.01 par value; 1,000,000 shares authorized; nil shares issued and outstanding at June 30, 2022 and December 31, 2021 | 0 | 0 |
Common stock, $.001 par value; 250,000,000 shares authorized; 185,435,965 shares issued at June 30, 2022 and December 31, 2021; 175,127,878 shares outstanding at June 30, 2022 and December 31, 2021 | 185,000 | 185,000 |
Additional paid-in capital | 63,930,000 | 63,917,000 |
Accumulated deficit | (49,751,000) | (50,902,000) |
Accumulated other comprehensive income | (106,000) | 110,000 |
Treasury stock, at cost, 10,308,087 shares at June 30, 2022 and December 31, 2021 | (2,000,000) | (2,000,000) |
Total stockholders' equity | 12,258,000 | 11,310,000 |
Total Liabilities | $ 53,478,000 | $ 52,361,000 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Accounts And Other Receivables, Allowance For Doubtful Accounts And Commission Adjustments | $ 6,270 | $ 5,804 |
Property And Equipment, Accumulated Depreciation | $ 9,626 | $ 10,512 |
Preferred Stock, Par Value | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par Value | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 250,000,000 | 250,000,000 |
Common Stock, Shares Issued | 185,435,965 | 185,435,965 |
Common Stock, Shares Outstanding | 175,127,878 | 175,127,878 |
Treasury Stock At Cost | 10,308,087 | 10,308,087 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (unaudited) | ||||
Managed IT systems and services | $ 10,019 | $ 10,442 | $ 20,022 | $ 21,696 |
Professional sales services | 8,854 | 4,971 | 15,461 | 9,626 |
Equipment sales and services | 629 | 718 | 1,029 | 1,329 |
Total revenues | 19,502 | 16,131 | 36,512 | 32,651 |
Cost of revenues | ||||
Cost of managed IT systems and services | 6,342 | 6,348 | 12,211 | 13,195 |
Cost of professional sales services | 1,674 | 995 | 2,975 | 1,985 |
Cost of equipment sales and services | 150 | 148 | 221 | 271 |
Total cost of revenues | 8,166 | 7,491 | 15,407 | 15,451 |
Gross profit | 11,336 | 8,640 | 21,105 | 17,200 |
Operating expenses | ||||
Selling, general and administrative | 9,604 | 9,192 | 19,606 | 18,148 |
Research and development | 170 | 170 | 292 | 314 |
Total operating expenses | 9,774 | 9,362 | 19,898 | 18,462 |
Operating income (loss) | 1,562 | (722) | 1,207 | (1,262) |
Other (expense) income | ||||
Interest and financing costs | (1) | (71) | (24) | (206) |
Interest and other income, net | (48) | (23) | 0 | 27 |
Gain on forgiveness of PPP loan | 0 | 3,646 | 0 | 3,646 |
Loss on disposal of fixed assets | 0 | 0 | (2) | 0 |
Total other (expense) income, net | (49) | 3,552 | (26) | 3,467 |
Income before income taxes | 1,513 | 2,830 | 1,181 | 2,205 |
Income tax (expense) benefit | (18) | (50) | (30) | (68) |
Net income | 1,495 | 2,780 | 1,151 | 2,137 |
Other comprehensive income | ||||
Foreign currency translation gain (loss) | (215) | 51 | (216) | 30 |
Comprehensive income | $ 1,280 | $ 2,831 | $ 935 | $ 2,167 |
Income per common share | ||||
- basic and diluted | $ 0.01 | $ 0.02 | $ 0.01 | $ 0.01 |
Weighted average common shares outstanding | ||||
- basic | 172,858 | 171,438 | 172,594 | 171,139 |
- diluted | 174,059 | 173,582 | 173,195 | 172,211 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY (unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Accumulated other comprehensive loss |
Balance, shares at Dec. 31, 2020 | 185,244 | 10,308 | ||||
Balance, amount at Dec. 31, 2020 | $ 5,085 | $ 185 | $ (2,000) | $ 63,886 | $ (57,002) | $ 16 |
Share-based compensation, amount | 9 | 0 | 0 | 9 | 0 | 0 |
Foreign currency translation income (loss) | (21) | 0 | 0 | 0 | 0 | (21) |
Net income (loss) | (643) | $ 0 | $ 0 | 0 | (643) | 0 |
Balance, shares at Mar. 31, 2021 | 185,244 | 10,308 | ||||
Balance, amount at Mar. 31, 2021 | 4,430 | $ 185 | $ (2,000) | 63,895 | (57,645) | (5) |
Balance, shares at Dec. 31, 2020 | 185,244 | 10,308 | ||||
Balance, amount at Dec. 31, 2020 | 5,085 | $ 185 | $ (2,000) | 63,886 | (57,002) | 16 |
Share-based compensation, amount | 17 | |||||
Foreign currency translation income (loss) | 30 | |||||
Net income (loss) | 2,137 | |||||
Balance, shares at Jun. 30, 2021 | 185,436 | 10,308 | ||||
Balance, amount at Jun. 30, 2021 | 7,269 | $ 185 | $ (2,000) | 63,903 | (54,865) | 46 |
Balance, shares at Mar. 31, 2021 | 185,244 | 10,308 | ||||
Balance, amount at Mar. 31, 2021 | 4,430 | $ 185 | $ (2,000) | 63,895 | (57,645) | (5) |
Share-based compensation, amount | 8 | 0 | 0 | 8 | 0 | 0 |
Foreign currency translation income (loss) | 51 | 0 | 0 | 0 | 0 | 51 |
Net income (loss) | 2,780 | $ 0 | $ 0 | 0 | 2,780 | 0 |
Share-based compensation, shares | 192 | |||||
Balance, shares at Jun. 30, 2021 | 185,436 | 10,308 | ||||
Balance, amount at Jun. 30, 2021 | 7,269 | $ 185 | $ (2,000) | 63,903 | (54,865) | 46 |
Balance, shares at Dec. 31, 2021 | 185,436 | 10,308 | ||||
Balance, amount at Dec. 31, 2021 | 11,310 | $ 185 | $ (2,000) | 63,917 | (50,902) | 110 |
Share-based compensation, amount | 7 | 0 | 0 | 7 | 0 | 0 |
Foreign currency translation income (loss) | (1) | 0 | 0 | 0 | 0 | (1) |
Net income (loss) | (344) | $ 0 | $ 0 | 0 | (344) | 0 |
Balance, shares at Mar. 31, 2022 | 185,436 | 10,308 | ||||
Balance, amount at Mar. 31, 2022 | 10,972 | $ 185 | $ (2,000) | 63,924 | (51,246) | 109 |
Balance, shares at Dec. 31, 2021 | 185,436 | 10,308 | ||||
Balance, amount at Dec. 31, 2021 | 11,310 | $ 185 | $ (2,000) | 63,917 | (50,902) | 110 |
Share-based compensation, amount | 13 | |||||
Foreign currency translation income (loss) | (216) | |||||
Net income (loss) | 1,151 | |||||
Balance, shares at Jun. 30, 2022 | 185,436 | 10,308 | ||||
Balance, amount at Jun. 30, 2022 | 12,258 | $ 185 | $ (2,000) | 63,930 | (49,751) | (106) |
Balance, shares at Mar. 31, 2022 | 185,436 | 10,308 | ||||
Balance, amount at Mar. 31, 2022 | 10,972 | $ 185 | $ (2,000) | 63,924 | (51,246) | 109 |
Share-based compensation, amount | 6 | 0 | 0 | 6 | 0 | 0 |
Foreign currency translation income (loss) | (215) | 0 | 0 | 0 | 0 | (215) |
Net income (loss) | 1,495 | $ 0 | $ 0 | 0 | 1,495 | 0 |
Balance, shares at Jun. 30, 2022 | 185,436 | 10,308 | ||||
Balance, amount at Jun. 30, 2022 | $ 12,258 | $ 185 | $ (2,000) | $ 63,930 | $ (49,751) | $ (106) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities | ||
Net income | $ 1,151 | $ 2,137 |
cash (used in) provided by operating activities | ||
Depreciation and amortization | 1,258 | 1,124 |
(Gain) loss from investment in EECP Global | 55 | 20 |
Gain on forgiveness of PPP loan | 0 | (3,646) |
Provision for doubtful accounts and commission adjustments | 157 | 455 |
Write-down of inventory | 0 | 175 |
Share-based compensation | 13 | 17 |
Changes in operating assets and liabilities: | ||
Accounts and other receivables | 8,376 | 5,792 |
Inventories | (509) | 134 |
Deferred commission expense | (27) | (22) |
Prepaid expenses and other current assets | 120 | 271 |
Other assets, net | (216) | (151) |
Accounts payable | (628) | (2,753) |
Accrued commissions | (1,040) | (1,087) |
Accrued expenses and other liabilities | (941) | 1,331 |
Sales tax payable | 26 | (59) |
Deferred revenue | 2,132 | 1,963 |
Due to related party | (275) | (205) |
Other long-term liabilities | 79 | 97 |
Net cash provided by operating activities | 9,731 | 5,593 |
Cash flows from investing activities | ||
Purchases of equipment and software | (358) | (124) |
Redemption (purchases) of short-term investments | 154 | 155 |
Net cash (used in) provided by investing activities | (204) | 31 |
Cash flows from financing activities | ||
Repayment on revolving lines of credit | 0 | (1,575) |
Repayment of notes payable and finance lease obligations | (125) | (1,526) |
Net cash used in financing activities | (125) | (3,101) |
Effect of exchange rate differences on cash and cash equivalents | 9 | 65 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 9,411 | 2,588 |
Cash and cash equivalents - beginning of period | 6,025 | 6,819 |
Cash and cash equivalents - end of period | 15,436 | 9,407 |
SUPPLEMENTAL DISCLOSURE OF CASH INFORMATION | ||
Interest paid | 29 | 242 |
Income taxes paid | 54 | 97 |
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Initial recognition of operating lease right of use asset and liability | $ 1,072 | $ 251 |
ORGANIZATION AND PLAN OF OPERAT
ORGANIZATION AND PLAN OF OPERATIONS | 6 Months Ended |
Jun. 30, 2022 | |
ORGANIZATION AND PLAN OF OPERATIONS | |
Note A- Organization And Plan Of Operations | NOTE A - ORGANIZATION AND PLAN OF OPERATIONS Vaso Corporation was incorporated in Delaware in July 1987. Unless the context requires otherwise, all references to “we”, “our”, “us”, “Company”, “registrant”, “Vaso” or “management” refer to Vaso Corporation and its subsidiaries. Overview Vaso Corporation principally operates in three distinct business segments in the healthcare and information technology (“IT”) 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 General Electric Healthcare (“GEHC”) into the healthcare provider middle market; and · Equipment segment, operating through a wholly-owned subsidiary VasoMedical, Inc., primarily focuses on the design, manufacture, sale and service of proprietary medical devices and software. VasoTechnology VasoTechnology, Inc.was formed in May 2015, at the time the Company acquired all of the assets of NetWolves, LLC and its affiliates, including the membership interests in NetWolves Network Services, LLC (collectively, “NetWolves”). It currently consists of a managed network and security service division and a healthcare IT application division. Its current offerings include: · Managed radiology and imaging applications (channel partner of select vendors of healthcare IT products). · Managed network infrastructure (routers, switches and other core equipment). · Managed network transport (FCC licensed carrier reselling over 175 facility partners). · Managed security services. VasoTechnology uses a combination of proprietary technology, methodology and third-party applications to deliver its value proposition. VasoHealthcare VasoHealthcare commenced operations in 2010, in conjunction with the Company’s execution of its exclusive sales representation agreement (“GEHC Agreement”) with GEHC, which is the healthcare business division of the General Electric Company (“GE”), to further the sale of certain healthcare capital equipment in the healthcare provider middle market. Sales of GEHC equipment by the Company have grown significantly since then. VasoHealthcare’s current offerings consist of: · GEHC diagnostic imaging capital equipment. · GEHC service agreements for the above equipment. · GEHC training services for use of the above equipment. · GEHC and third party financial services. VasoMedical VasoMedical is the Company’s business division for its proprietary medical device operations, including the design, development, manufacturing, sales and service of various medical devices in the domestic and international markets and includes the Vasomedical Global and Vasomedical Solutions business units. These devices are primarily for cardiovascular monitoring and diagnostic systems. Its current offerings consist of: · Biox™ series Holter monitors and ambulatory blood pressure recorders. · ARCS ® · MobiCare™ multi-parameter wireless vital-sign monitoring system. · EECP ® This segment uses its extensive cardiovascular device knowledge coupled with its significant engineering resources to cost-effectively create and market its proprietary technology. It works with a global distribution network of channel partners to sell its products. It also provides engineering and OEM services to other medical device companies. |
INTERIM STATEMENT PRESENTATION
INTERIM STATEMENT PRESENTATION | 6 Months Ended |
Jun. 30, 2022 | |
INTERIM STATEMENT PRESENTATION | |
Note B- Interim Statement Presentation | NOTE B – INTERIM STATEMENT PRESENTATION Basis of Presentation and Use of Estimates The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and pursuant to the accounting and disclosure rules and regulations of the Securities and Exchange Commission (the "SEC") for interim financial information. Certain information and disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the SEC on March 31, 2022. These unaudited condensed consolidated financial statements include the accounts of the companies over which we exercise control. In the opinion of management, the accompanying condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of interim results for the Company. The results of operations for any interim period are not necessarily indicative of results to be expected for any other interim period or the full year. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the condensed consolidated financial statements, the disclosure of contingent assets and liabilities in the unaudited condensed consolidated financial statements and the accompanying notes, and the reported amounts of revenues, expenses and cash flows during the periods presented. Actual amounts and results could differ from those estimates. The estimates and assumptions the Company makes are based on historical factors, current circumstances and the experience and judgment of the Company's management. The Company evaluates its estimates and assumptions on an ongoing basis. Significant Accounting Policies and Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which provides new guidance regarding the measurement and recognition of credit impairment for certain financial assets. Such guidance will impact how we determine our allowance for estimated uncollectible receivables. In November 2019, the FASB issued ASU 2019-10, which changed the effective date of ASU 2016-13 for smaller reporting companies as defined by the SEC from first quarter of 2020 to the first quarter of 2023, with early adoption permitted. We are currently evaluating the effect that ASU 2016-13 will have on our consolidated financial statements and related disclosures. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 6 Months Ended |
Jun. 30, 2022 | |
REVENUE RECOGNITION | |
Note C- Revenue Recognition | NOTE C – REVENUE RECOGNITION Disaggregation of Revenue The following tables present revenues disaggregated by our business operations and timing of revenue recognition: (in thousands) Three Months Ended June 30, 2022 (unaudited) Three Months Ended June 30, 2021 (unaudited) Professional Professional IT segment sales service segment Equipment segment Total IT segment sales service segment Equipment segment Total Network services $ 8,890 $ - $ - $ 8,890 $ 9,371 $ - $ - $ 9,371 Software sales and support 1,129 - - 1,129 1,071 - - 1,071 Commissions - 8,854 - 8,854 - 4,971 - 4,971 Medical equipment sales - - 597 597 - - 686 686 Medical equipment service - - 32 32 - - 32 32 $ 10,019 $ 8,854 $ 629 $ 19,502 $ 10,442 $ 4,971 $ 718 $ 16,131 Six Months Ended June 30, 2022 (unaudited) Six Months Ended June 30, 2021 (unaudited) Professional sales Professional sales IT segment service segment Equipment segment Total IT segment service segment Equipment segment Total Network services $ 17,919 $ - $ - $ 17,919 $ 19,490 $ - $ - $ 19,490 Software sales and support 2,103 - - 2,103 2,206 - - 2,206 Commissions - 15,461 - 15,461 - 9,626 - 9,626 Medical equipment sales - - 967 967 - - 1,263 1,263 Medical equipment service - - 62 62 - - 66 66 $ 20,022 $ 15,461 $ 1,029 $ 36,512 $ 21,696 $ 9,626 $ 1,329 $ 32,651 Three Months Ended June 30, 2022 (unaudited) Three Months Ended June 30, 2021 (unaudited) Professional sales Professional sales IT segment service segment Equipment segment Total IT segment service segment Equipment segment Total Revenue recognized over time $ 9,075 $ - $ 84 $ 9,159 $ 9,246 $ - $ 31 $ 9,277 Revenue recognized at a point in time 944 8,854 545 10,343 1,196 4,971 687 6,854 $ 10,019 $ 8,854 $ 629 $ 19,502 $ 10,442 $ 4,971 $ 718 $ 16,131 Six Months Ended June 30, 2022 (unaudited) Six Months Ended June 30, 2021 (unaudited) Professional sales Professional sales IT segment service segment Equipment segment Total IT segment service segment Equipment segment Total Revenue recognized over time $ 18,309 $ - $ 148 $ 18,457 $ 19,271 $ - $ 63 $ 19,334 Revenue recognized at a point in time 1,713 15,461 881 18,055 2,425 9,626 1,266 13,317 $ 20,022 $ 15,461 $ 1,029 $ 36,512 $ 21,696 $ 9,626 $ 1,329 $ 32,651 Transaction Price Allocated to Remaining Performance Obligations As of June 30, 2022, the aggregate amount of transaction price allocated to performance obligations that are unsatisfied (or partially unsatisfied) for executed contracts approximates $84.1 million, of which we expect to recognize revenue as follows: (in thousands) Fiscal years of revenue recognition (unaudited) 2022 2023 2024 Thereafter Unfulfilled performance obligations $ 29,216 $ 31,904 $ 8,103 $ 14,910 Contract Liabilities Contract liabilities arise in our healthcare IT, VasoHealthcare, and VasoMedical businesses. In our healthcare IT business, payment arrangements with clients typically include an initial payment due upon contract signing and milestone-based payments based upon product delivery and go-live, as well as post go-live monthly payments for subscription and support fees. Customer payments received, or receivables recorded, in advance of go-live and customer acceptance, where applicable, are deferred as contract liabilities. Such amounts aggregated approximately $445,000 and $407,000 at June 30, 2022 and December 31, 2021, respectively, and are included in accrued expenses and other liabilities in our condensed consolidated balance sheets. In our VasoHealthcare business, we bill amounts for certain milestones in advance of customer acceptance of the underlying equipment. Such amounts aggregated approximately $27,090,000 and $24,955,000 at June 30, 2022 and December 31, 2021, respectively, and are classified in our condensed consolidated balance sheets as either current or long-term deferred revenue. In addition, we record a contract liability for amounts expected to be repaid to GEHC due to customer order reductions. Such amounts aggregated approximately $2,470,000 and $1,518,000 at June 30, 2022 and December 31, 2021, respectively, and are included in accrued expenses and other liabilities in our condensed consolidated balance sheets. In our VasoMedical business, we bill amounts for post-delivery services and varying duration service contracts in advance of performance. Such amounts aggregated approximately $7,000 and $9,000 at June 30, 2022 and December 31, 2021, respectively, and are classified in our condensed consolidated balance sheets as either current or long-term deferred revenue. During the three and six months ended June 30, 2022, we recognized approximately $3.2 million and $5.7 million of revenues, respectively, that were included in our contract liability balance at April 1, 2022 and January 1, 2022, respectively. |
SEGMENT REPORTING AND CONCENTRA
SEGMENT REPORTING AND CONCENTRATIONS | 6 Months Ended |
Jun. 30, 2022 | |
SEGMENT REPORTING AND CONCENTRATIONS | |
Note D- Segment Reporting And Concentrations | NOTE D – SEGMENT REPORTING AND CONCENTRATIONS Vaso Corporation principally operates in three distinct business segments in the healthcare and information technology industries. We manage and evaluate our operations, and report our financial results, through these three reportable 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 GEHC into the healthcare provider middle market; and · Equipment segment, operating through a wholly-owned subsidiary VasoMedical, Inc., primarily focuses on the design, manufacture, sale and service of proprietary medical devices. 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 (net income (loss), plus interest expense (income), net; tax expense; depreciation and amortization; and non-cash stock-based compensation). 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) Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 (unaudited) (unaudited) (unaudited) (unaudited) Revenues from external customers IT $ 10,019 $ 10,442 $ 20,022 $ 21,696 Professional sales service 8,854 4,971 15,461 9,626 Equipment 629 718 1,029 1,329 Total revenues $ 19,502 $ 16,131 $ 36,512 $ 32,651 Gross Profit IT $ 3,677 $ 4,094 $ 7,811 $ 8,501 Professional sales service 7,180 3,976 12,486 7,641 Equipment 479 570 808 1,058 Total gross profit $ 11,336 $ 8,640 $ 21,105 $ 17,200 Operating income (loss) IT $ (918 ) $ (246 ) $ (1,057 ) $ (179 ) Professional sales service 2,754 (47 ) 2,990 (382 ) Equipment (77 ) (128 ) (156 ) (115 ) Corporate (197 ) (301 ) (570 ) (586 ) Total operating income (loss) $ 1,562 $ (722 ) $ 1,207 $ (1,262 ) Depreciation and amortization IT $ 729 $ 415 $ 1,104 $ 901 Professional sales service 11 38 22 76 Equipment 65 75 132 147 Corporate - - - - Total depreciation and amortization $ 805 $ 528 $ 1,258 $ 1,124 Capital expenditures IT $ 145 $ 62 $ 296 $ 86 Professional sales service 7 3 40 3 Equipment 11 - 21 36 Corporate - - 1 - Total cash capital expenditures $ 163 $ 65 $ 358 $ 125 (in thousands) June 30, 2022 December 31, 2021 (unaudited) Identifiable Assets IT $ 22,346 $ 23,144 Professional sales service 11,903 18,718 Equipment 7,323 7,144 Corporate 11,906 3,355 Total assets $ 53,478 $ 52,361 GE Healthcare accounted for 45% and 31% of revenue for the three-month periods ended June 30, 2022 and 2021, respectively, and 42% and 29% of revenue for the six-month periods ended June 30, 2022 and 2021, respectively. GE Healthcare also accounted for $5.0 million or 72%, and $12.3 million or 80%, of accounts and other receivables at June 30, 2022 and December 31, 2021, respectively. No other customer accounted for 10% or more of revenue. |
NET INCOME PER COMMON SHARE
NET INCOME PER COMMON SHARE | 6 Months Ended |
Jun. 30, 2022 | |
NET INCOME PER COMMON SHARE | |
NOTE E -Net Income Per Common Share | NOTE E –NET INCOME PER COMMON SHARE Basic earnings per common share is computed as earnings applicable to common stockholders divided by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share reflects the potential dilution that could occur if securities or other contracts to issue common shares were exercised or converted to common stock. 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) Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 (unaudited) (unaudited) (unaudited) (unaudited) Basic weighted average shares outstanding 172,858 171,438 172,594 171,139 Dilutive effect of unvested restricted shares 1,201 2,144 601 1,072 Diluted weighted average shares outstanding 174,059 173,582 173,195 172,211 The following table represents common stock equivalents that were excluded from the computation of diluted earnings per share for the three and six months ended June 30, 2022 and 2021, because the effect of their inclusion would be anti-dilutive. (in thousands) Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 (unaudited) (unaudited) (unaudited) (unaudited) Restricted common stock grants 2 9 2,249 9 |
ACCOUNTS AND OTHER RECEIVABLES
ACCOUNTS AND OTHER RECEIVABLES NET | 6 Months Ended |
Jun. 30, 2022 | |
ACCOUNTS AND OTHER RECEIVABLES NET | |
Note F- Accounts And Other Receivables Net | NOTE F – ACCOUNTS AND OTHER RECEIVABLES, NET The following table presents information regarding the Company’s accounts and other receivables as of June 30, 2022 and December 31, 2021: (in thousands) June 30, 2022 December 31, 2021 (unaudited) Trade receivables $ 11,269 $ 21,197 Unbilled receivables 1,837 - Allowance for doubtful accounts and commission adjustments (6,270 ) (5,804 ) Accounts and other receivables, net $ 6,836 $ 15,393 Contract receivables under Topic 606 consist of trade receivables and unbilled receivables. Trade receivables include amounts due for shipped products and services rendered. Unbilled receivables represent variable consideration recognized in accordance with Topic 606 but not yet billable. Amounts recorded – billed and unbilled - 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 subsequent changes in sales order amounts that may reduce the amount the Company will ultimately receive under the GEHC Agreement. Due from employees is primarily commission advances made to sales personnel. |
INVENTORIES NET
INVENTORIES NET | 6 Months Ended |
Jun. 30, 2022 | |
INVENTORIES NET | |
Note G- Inventories, Net | NOTE G – INVENTORIES, NET Inventories, net of reserves, consist of the following: (in thousands) June 30, 2022 December 31, 2021 (unaudited) Raw materials $ 754 $ 744 Work in process 55 4 Finished goods 788 399 $ 1,597 $ 1,147 The Company maintained reserves for slow moving inventories of $163,000 and $165,000 at June 30, 2022 and December 31, 2021, respectively. |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES | 6 Months Ended |
Jun. 30, 2022 | |
GOODWILL AND OTHER INTANGIBLES | |
Note H- Goodwill And Other Intangibles | NOTE H – GOODWILL AND OTHER INTANGIBLES Goodwill of $14,375,000 is allocated to the IT segment. The remaining $1,280,000 of goodwill is attributable to the FGE reporting unit within the Equipment segment. The NetWolves and FGE reporting units had negative net asset carrying amounts at June 30, 2022 and December 31, 2021. The components of the change in goodwill are as follows: (in thousands) Six months ended Year ended June 30, 2022 December 31, 2021 (unaudited) Beginning of period $ 15,722 $ 15,688 Foreign currency translation adjustment (67 ) 34 End of period $ 15,655 $ 15,722 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) June 30, 2022 December 31, 2021 (unaudited) Customer-related Costs $ 5,831 $ 5,831 Accumulated amortization (4,418 ) (4,279 ) 1,413 1,552 Patents and Technology Costs 1,894 1,894 Accumulated amortization (1,859 ) (1,754 ) 35 140 Software Costs 2,351 3,459 Accumulated amortization (2,064 ) (3,110 ) 287 349 $ 1,735 $ 2,041 Patents and technology are amortized on a straight-line basis over their estimated useful lives of ten and eight years, respectively. 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. Software costs are amortized on a straight-line basis over its expected useful life of five years. Amortization expense amounted to $164,000 and $214,000 for the three months ended June 30, 2022 and 2021, respectively and $315,000 and $428,000 for the six months ended June 30, 2022 and 2021, respectively. Amortization of intangibles for the next five years is: (in thousands) Years ending December 31, (unaudited) Remainder of 2022 $ 236 2023 340 2024 271 2025 200 2026 145 $ 1,192 |
OTHER ASSETS NET
OTHER ASSETS NET | 6 Months Ended |
Jun. 30, 2022 | |
OTHER ASSETS NET | |
Note I- Other Assets, Net | NOTE I – OTHER ASSETS, NET Other assets, net consist of the following at June 30, 2022 and December 31, 2021: (in thousands) June 30, 2022 December 31, 2021 (unaudited) Deferred commission expense - noncurrent $ 2,168 $ 2,018 Trade receivables - noncurrent 335 368 Other, net of allowance for loss on loan receivable of $412 at June 30, 2022 and December 31, 2021 71 60 $ 2,574 $ 2,446 |
ACCRUED EXPENSES AND OTHER LIAB
ACCRUED EXPENSES AND OTHER LIABILITIES | 6 Months Ended |
Jun. 30, 2022 | |
ACCRUED EXPENSES AND OTHER LIABILITIES | |
Note J- Accrued Expenses And Other Liabilities | NOTE J – ACCRUED EXPENSES AND OTHER LIABILITIES Accrued expenses and other liabilities consist of the following at June 30, 2022 and December 31, 2021: (in thousands) June 30, 2022 December 31, 2021 (unaudited) Accrued compensation $ 1,205 $ 2,397 Accrued expenses - other 1,275 1,799 Other liabilities 4,232 3,293 $ 6,712 $ 7,489 |
DEFERRED REVENUE
DEFERRED REVENUE | 6 Months Ended |
Jun. 30, 2022 | |
DEFERRED REVENUE | |
Note K- Deferred Revenue | NOTE K - DEFERRED REVENUE The changes in the Company’s deferred revenues are as follows: (in thousands) Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 (unaudited) (unaudited) (unaudited) (unaudited) Deferred revenue at beginning of period $ 26,954 $ 18,484 $ 24,965 $ 17,704 Net additions: Deferred extended service contracts - - - (1 ) Deferred commission revenues 3,575 3,092 8,267 5,705 Recognized as revenue: Deferred extended service contracts (1 ) (1 ) (3 ) (2 ) Deferred commission revenues (3,431 ) (1,908 ) (6,132 ) (3,739 ) Deferred revenue at end of period 27,097 19,667 27,097 19,667 Less: current portion 18,583 12,613 18,583 12,613 Long-term deferred revenue at end of period $ 8,514 $ 7,054 $ 8,514 $ 7,054 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2022 | |
RELATED PARTY TRANSACTIONS | |
Note L- Related-party Transactions | NOTE L – RELATED-PARTY TRANSACTIONS The Company recorded interest charges aggregating approximately $36,000 and $90,000 for the three and six-month periods ended June 30, 2021, respectively, payable to MedTechnology Investments, LLC (“MedTech”) pursuant to its promissory notes (“Notes”). The MedTech Notes were used in 2015 to partially fund the purchase of NetWolves, and, through several principal payments made in 2020 and 2021, were repaid in full in December 2021. David Lieberman, the Vice Chairman of the Company’s Board of Directors, is a practicing attorney in the State of New York and a senior partner at the law firm of Beckman Lieberman & Associates LLP, which performs certain legal services for the Company. Fees of approximately $48,000 were billed by the firm for both of the three-month periods ended June 30, 2022 and 2021, and fees of approximately $95,000 were billed by the firm for both of the six-month periods ended June 30, 2022 and 2021. No amounts were outstanding at June 30, 2022 and 2021. The Company uses the equity method to account for its interest in EECP Global as it has the ability to exercise significant influence over the entity and reports its share of EECP Global operations in Other Income (Expense) on its condensed consolidated statements of operations. For the three months ended June 30, 2022 and 2021, the Company’s share of EECP Global’s loss was approximately $71,000 and $33,000, respectively, and for the six months ended June 30, 2022 and 2021, the Company’s share of EECP Global’s loss was approximately $55,000 and $20,000, respectively, and included in Other (Expense) Income in its condensed consolidated statements of operations. At June 30, 2022, the Company recorded a net receivable from related parties of approximately $322,000 on its condensed consolidated balance sheet for amounts due from EECP Global for fees and cost reimbursements net of amounts due to EECP Global for receivables collected on its behalf. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2022 | |
COMMITMENTS AND CONTINGENCIES | |
Note M- Commitments And Contingencies | NOTE M – COMMITMENTS AND CONTINGENCIES Litigation The Company is currently, and has been in the past, a party to various legal proceedings, primarily employee related matters, incident to its business. The Company believes that the outcome of all pending legal proceedings in the aggregate is unlikely to have a material adverse effect on the business or consolidated financial condition of the Company. Sales Representation Agreement In October 2021, the Company concluded an amendment of the GEHC Agreement with GEHC, originally signed on May 19, 2010 and previously extended in 2012, 2015 and 2017. The amendment further extended the term of the agreement through December 31, 2026. Under the agreement, VasoHealthcare is the exclusive representative for the sale of select GE Healthcare diagnostic imaging products to certain customer segments/accounts in the 48 contiguous states of the United States and the District of Columbia. The agreement may be terminated by GE Healthcare with cause, which includes VasoHealthcare’s not materially achieving certain sales goals, not maintaining a minimum number of sales representatives, or not meeting various legal and GEHC policy requirements. The agreement may also be terminated by GE Healthcare without cause but subject to certain conditions. Employment Agreements On May 10, 2019, the Company modified its Employment Agreement with its President and Chief Executive Officer, Dr. Jun Ma, to provide for a five-year term with extensions, unless earlier terminated by the Company, but in no event can it extend beyond May 31, 2026. The Employment Agreement provides for annual compensation of $500,000. Dr. Ma shall be eligible to receive a bonus for each fiscal year 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. Operating Leases The Company executed amendments to its facility leases in New York and Florida in March 2022 and June 2022, respectively. for three additional years in New York and two additional years in Florida, with rates increasing 3% per annum, and recorded initial right-of-use assets of approximately $207,000 and $378,000, respectively. In addition, the Company entered into operating leases ranging from two to four years for additional computer equipment and automobiles at various times in 2022 recording initial right-of-use assets of approximately $141,000 and $346,000, respectively. |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
REVENUE RECOGNITION (Tables) | |
Disaggregation Of Revenue | (in thousands) Three Months Ended June 30, 2022 (unaudited) Three Months Ended June 30, 2021 (unaudited) Professional Professional IT segment sales service segment Equipment segment Total IT segment sales service segment Equipment segment Total Network services $ 8,890 $ - $ - $ 8,890 $ 9,371 $ - $ - $ 9,371 Software sales and support 1,129 - - 1,129 1,071 - - 1,071 Commissions - 8,854 - 8,854 - 4,971 - 4,971 Medical equipment sales - - 597 597 - - 686 686 Medical equipment service - - 32 32 - - 32 32 $ 10,019 $ 8,854 $ 629 $ 19,502 $ 10,442 $ 4,971 $ 718 $ 16,131 Six Months Ended June 30, 2022 (unaudited) Six Months Ended June 30, 2021 (unaudited) Professional sales Professional sales IT segment service segment Equipment segment Total IT segment service segment Equipment segment Total Network services $ 17,919 $ - $ - $ 17,919 $ 19,490 $ - $ - $ 19,490 Software sales and support 2,103 - - 2,103 2,206 - - 2,206 Commissions - 15,461 - 15,461 - 9,626 - 9,626 Medical equipment sales - - 967 967 - - 1,263 1,263 Medical equipment service - - 62 62 - - 66 66 $ 20,022 $ 15,461 $ 1,029 $ 36,512 $ 21,696 $ 9,626 $ 1,329 $ 32,651 Three Months Ended June 30, 2022 (unaudited) Three Months Ended June 30, 2021 (unaudited) Professional sales Professional sales IT segment service segment Equipment segment Total IT segment service segment Equipment segment Total Revenue recognized over time $ 9,075 $ - $ 84 $ 9,159 $ 9,246 $ - $ 31 $ 9,277 Revenue recognized at a point in time 944 8,854 545 10,343 1,196 4,971 687 6,854 $ 10,019 $ 8,854 $ 629 $ 19,502 $ 10,442 $ 4,971 $ 718 $ 16,131 Six Months Ended June 30, 2022 (unaudited) Six Months Ended June 30, 2021 (unaudited) Professional sales Professional sales IT segment service segment Equipment segment Total IT segment service segment Equipment segment Total Revenue recognized over time $ 18,309 $ - $ 148 $ 18,457 $ 19,271 $ - $ 63 $ 19,334 Revenue recognized at a point in time 1,713 15,461 881 18,055 2,425 9,626 1,266 13,317 $ 20,022 $ 15,461 $ 1,029 $ 36,512 $ 21,696 $ 9,626 $ 1,329 $ 32,651 |
Transaction Price Allocated To Remaining Performance Obligations | (in thousands) Fiscal years of revenue recognition (unaudited) 2022 2023 2024 Thereafter Unfulfilled performance obligations $ 29,216 $ 31,904 $ 8,103 $ 14,910 |
SEGMENT REPORTING AND CONCENT_2
SEGMENT REPORTING AND CONCENTRATIONS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
SEGMENT REPORTING AND CONCENTRATIONS (Tables) | |
Financial Information For Segments | (in thousands) Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 (unaudited) (unaudited) (unaudited) (unaudited) Revenues from external customers IT $ 10,019 $ 10,442 $ 20,022 $ 21,696 Professional sales service 8,854 4,971 15,461 9,626 Equipment 629 718 1,029 1,329 Total revenues $ 19,502 $ 16,131 $ 36,512 $ 32,651 Gross Profit IT $ 3,677 $ 4,094 $ 7,811 $ 8,501 Professional sales service 7,180 3,976 12,486 7,641 Equipment 479 570 808 1,058 Total gross profit $ 11,336 $ 8,640 $ 21,105 $ 17,200 Operating income (loss) IT $ (918 ) $ (246 ) $ (1,057 ) $ (179 ) Professional sales service 2,754 (47 ) 2,990 (382 ) Equipment (77 ) (128 ) (156 ) (115 ) Corporate (197 ) (301 ) (570 ) (586 ) Total operating income (loss) $ 1,562 $ (722 ) $ 1,207 $ (1,262 ) Depreciation and amortization IT $ 729 $ 415 $ 1,104 $ 901 Professional sales service 11 38 22 76 Equipment 65 75 132 147 Corporate - - - - Total depreciation and amortization $ 805 $ 528 $ 1,258 $ 1,124 Capital expenditures IT $ 145 $ 62 $ 296 $ 86 Professional sales service 7 3 40 3 Equipment 11 - 21 36 Corporate - - 1 - Total cash capital expenditures $ 163 $ 65 $ 358 $ 125 (in thousands) June 30, 2022 December 31, 2021 (unaudited) Identifiable Assets IT $ 22,346 $ 23,144 Professional sales service 11,903 18,718 Equipment 7,323 7,144 Corporate 11,906 3,355 Total assets $ 53,478 $ 52,361 |
NET INCOME PER COMMON SHARE (Ta
NET INCOME PER COMMON SHARE (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
NET INCOME PER COMMON SHARE (Tables) | |
Schedule Of Common Stock Equivalents | (in thousands) Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 (unaudited) (unaudited) (unaudited) (unaudited) Restricted common stock grants 2 9 2,249 9 |
Weighted average number of share outstanding | (in thousands) Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 (unaudited) (unaudited) (unaudited) (unaudited) Basic weighted average shares outstanding 172,858 171,438 172,594 171,139 Dilutive effect of unvested restricted shares 1,201 2,144 601 1,072 Diluted weighted average shares outstanding 174,059 173,582 173,195 172,211 |
ACCOUNTS AND OTHER RECEIVABLE_2
ACCOUNTS AND OTHER RECEIVABLES NET (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
ACCOUNTS AND OTHER RECEIVABLES NET | |
Accounts And Other Receivables Net (tables) | (in thousands) June 30, 2022 December 31, 2021 (unaudited) Trade receivables $ 11,269 $ 21,197 Unbilled receivables 1,837 - Allowance for doubtful accounts and commission adjustments (6,270 ) (5,804 ) Accounts and other receivables, net $ 6,836 $ 15,393 |
INVENTORIES NET (Tables)
INVENTORIES NET (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
INVENTORIES NET (Tables) | |
Inventories, Net Of Reserves | (in thousands) June 30, 2022 December 31, 2021 (unaudited) Raw materials $ 754 $ 744 Work in process 55 4 Finished goods 788 399 $ 1,597 $ 1,147 |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
GOODWILL AND OTHER INTANGIBLES (Tables) | |
Changes In Carrying Amount Of Goodwill | (in thousands) Six months ended Year ended June 30, 2022 December 31, 2021 (unaudited) Beginning of period $ 15,722 $ 15,688 Foreign currency translation adjustment (67 ) 34 End of period $ 15,655 $ 15,722 |
Schedule Of Other Intangible Assets | (in thousands) June 30, 2022 December 31, 2021 (unaudited) Customer-related Costs $ 5,831 $ 5,831 Accumulated amortization (4,418 ) (4,279 ) 1,413 1,552 Patents and Technology Costs 1,894 1,894 Accumulated amortization (1,859 ) (1,754 ) 35 140 Software Costs 2,351 3,459 Accumulated amortization (2,064 ) (3,110 ) 287 349 $ 1,735 $ 2,041 |
Schedule Of Amortization Of Intangibles | (in thousands) Years ending December 31, (unaudited) Remainder of 2022 $ 236 2023 340 2024 271 2025 200 2026 145 $ 1,192 |
OTHER ASSETS, NET (Tables)
OTHER ASSETS, NET (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
OTHER ASSETS, NET (Tables) | |
Other Assets, Net (tables) | (in thousands) June 30, 2022 December 31, 2021 (unaudited) Deferred commission expense - noncurrent $ 2,168 $ 2,018 Trade receivables - noncurrent 335 368 Other, net of allowance for loss on loan receivable of $412 at June 30, 2022 and December 31, 2021 71 60 $ 2,574 $ 2,446 |
ACCRUED EXPENSES AND OTHER LI_2
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | |
Accrued Expenses And Other Liabilities (tables) | (in thousands) June 30, 2022 December 31, 2021 (unaudited) Accrued compensation $ 1,205 $ 2,397 Accrued expenses - other 1,275 1,799 Other liabilities 4,232 3,293 $ 6,712 $ 7,489 |
DEFERRED REVENUE (Tables)
DEFERRED REVENUE (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
DEFERRED REVENUE | |
Schedule Of Deferred Revenues | (in thousands) Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 (unaudited) (unaudited) (unaudited) (unaudited) Deferred revenue at beginning of period $ 26,954 $ 18,484 $ 24,965 $ 17,704 Net additions: Deferred extended service contracts - - - (1 ) Deferred commission revenues 3,575 3,092 8,267 5,705 Recognized as revenue: Deferred extended service contracts (1 ) (1 ) (3 ) (2 ) Deferred commission revenues (3,431 ) (1,908 ) (6,132 ) (3,739 ) Deferred revenue at end of period 27,097 19,667 27,097 19,667 Less: current portion 18,583 12,613 18,583 12,613 Long-term deferred revenue at end of period $ 8,514 $ 7,054 $ 8,514 $ 7,054 |
REVENUE RECOGNITION (Details)
REVENUE RECOGNITION (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Network Services | ||||
Revenue | $ 8,890,000 | $ 9,371,000 | $ 17,919,000 | $ 19,490,000 |
Software Sales and Support | ||||
Revenue | 1,129,000 | 1,071,000 | 2,103,000 | 2,206,000 |
Medical Equipment Sales | ||||
Revenue | 597,000 | 686,000 | 967,000 | 1,263,000 |
Medical Equipment Service | ||||
Revenue | 32,000 | 32,000 | 62,000 | 66,000 |
Commisions | ||||
Revenue | 8,854,000 | 4,971,000 | 15,461,000 | 9,626,000 |
Professional Sales Service Segment | ||||
Revenue | 8,854,000 | 4,971,000 | 15,461,000 | 9,626,000 |
Professional Sales Service Segment | Revenue Recognized Over Time | ||||
Revenue | 8,854,000 | 4,971,000 | 15,461,000 | 0 |
Professional Sales Service Segment | Revenue Recognized At A Point In Time | ||||
Revenue | 8,854,000 | 4,971,000 | 15,461,000 | 9,626,000 |
Professional Sales Service Segment | Network Services | ||||
Revenue | 0 | 0 | 0 | 0 |
Professional Sales Service Segment | Software Sales and Support | ||||
Revenue | 0 | 0 | 0 | 0 |
Professional Sales Service Segment | Commissions | ||||
Revenue | 8,854,000 | 4,971,000 | 15,461,000 | 9,626,000 |
Professional Sales Service Segment | Medical Equipment Sales | ||||
Revenue | 0 | 0 | 0 | 0 |
Professional Sales Service Segment | Medical Equipment Service | ||||
Revenue | 0 | 0 | 0 | 0 |
Equipment Segment | ||||
Revenue | 629,000 | 718,000 | 1,029,000 | 1,329,000 |
Equipment Segment | Revenue Recognized Over Time | ||||
Revenue | 84,000 | 31,000 | 148,000 | 63,000 |
Equipment Segment | Revenue Recognized At A Point In Time | ||||
Revenue | 545,000 | 687,000 | 881,000 | 1,266,000 |
Equipment Segment | Network Services | ||||
Revenue | 0 | 0 | 0 | 0 |
Equipment Segment | Software Sales and Support | ||||
Revenue | 0 | 0 | 0 | 0 |
Equipment Segment | Commissions | ||||
Revenue | 0 | 0 | 0 | 0 |
Equipment Segment | Medical Equipment Sales | ||||
Revenue | 597,000 | 686,000 | 967,000 | 1,263,000 |
Equipment Segment | Medical Equipment Service | ||||
Revenue | 32,000 | 32,000 | 62,000 | 62,000 |
IT Segment | ||||
Revenue | 10,019,000 | 10,442,000 | 20,022,000 | 21,696,000 |
IT Segment | Revenue Recognized Over Time | ||||
Revenue | 9,075,000 | 9,246,000 | 18,309,000 | 19,271,000 |
IT Segment | Revenue Recognized At A Point In Time | ||||
Revenue | 944,000 | 1,196,000 | 1,713,000 | 2,425,000 |
IT Segment | Network Services | ||||
Revenue | 8,890,000 | 9,371,000 | 17,919,000 | 19,490,000 |
IT Segment | Software Sales and Support | ||||
Revenue | 1,129,000 | 1,071,000 | 2,103,000 | 2,206,000 |
IT Segment | Commissions | ||||
Revenue | 0 | 0 | 0 | 0 |
IT Segment | Medical Equipment Sales | ||||
Revenue | 0 | 0 | 0 | 0 |
IT Segment | Medical Equipment Service | ||||
Revenue | $ 0 | $ 0 | $ 0 | $ 0 |
REVENUE RECOGNITION (Details 1)
REVENUE RECOGNITION (Details 1) $ in Thousands | Jun. 30, 2022 USD ($) |
REVENUE RECOGNITION (Details) | |
2022 | $ 29,216 |
2023 | 31,904 |
2024 | 8,103 |
Thereafter | $ 14,910 |
REVENUE RECOGNITION (Details Na
REVENUE RECOGNITION (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
REVENUE RECOGNITION (Details) | |||
Advance Of Customer Acceptance Of Equipment | $ 27,090,000 | $ 27,090,000 | $ 24,955,000 |
Contract Liabilities To Be Repaid | 2,470,000 | 2,470,000 | 1,518,000 |
Revenues Recognized Included In Our Contract Liability Balance | 3,200,000 | 5,700,000 | |
Post-delivery Services And Varying Duration Service Contracts | 7,000,000 | 7,000,000 | 9,000,000 |
Open Performance Obligations | 84,100,000 | 84,100,000 | |
Contract Liabilities | $ 445,000 | $ 445,000 | $ 407,000 |
SEGMENT REPORTING AND CONCENT_3
SEGMENT REPORTING AND CONCENTRATIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenues | $ 19,502 | $ 16,131 | $ 36,512 | $ 32,651 |
Gross profit | 11,336 | 8,640 | 21,105 | 17,200 |
Operating income (loss) | 1,562 | (722) | 1,207 | (1,262) |
Depreciation and amortization | 805 | 528 | 1,258 | 1,124 |
Purchases of equipment and software | 163 | 65 | 358 | 125 |
Corporate | ||||
Operating income (loss) | (197) | (301) | (570) | (586) |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Purchases of equipment and software | 0 | 0 | 1 | 0 |
Professional Sales Service Segment | ||||
Revenues | 8,854 | 4,971 | 15,461 | 9,626 |
Gross profit | 7,180 | 3,976 | 12,486 | 7,641 |
Operating income (loss) | 2,754 | (47) | 2,990 | (382) |
Depreciation and amortization | 11 | 38 | 22 | 76 |
Purchases of equipment and software | 7 | 3 | 40 | 3 |
Equipment Segment | ||||
Revenues | 629 | 718 | 1,029 | 1,329 |
Gross profit | 479 | 570 | 808 | 1,058 |
Operating income (loss) | (77) | (128) | (156) | (115) |
Depreciation and amortization | 65 | 75 | 132 | 147 |
Purchases of equipment and software | 11 | 0 | 21 | 36 |
Information Technology Segment | ||||
Revenues | 10,019 | 10,442 | 20,022 | 21,696 |
Gross profit | 3,677 | 4,094 | 7,811 | 8,501 |
Operating income (loss) | (918) | (246) | (1,057) | (179) |
Depreciation and amortization | 729 | 415 | 1,104 | 901 |
Purchases of equipment and software | $ 145 | $ 62 | $ 296 | $ 86 |
SEGMENT REPORTING AND CONCENT_4
SEGMENT REPORTING AND CONCENTRATIONS (Details 1) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Total Assets | $ 53,478 | $ 52,361 |
Corporate | ||
Total Assets | 11,906 | 3,355 |
Professional Sales Service Segment | ||
Total Assets | 11,903 | 18,718 |
Equipment Segment | ||
Total Assets | 7,323 | 7,144 |
Information Technology Segment | ||
Total Assets | $ 22,346 | $ 23,144 |
SEGMENT REPORTING (Details Narr
SEGMENT REPORTING (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Concentration risk percentage | 10% | ||||
Accounts and other receivables | $ 6,836 | $ 6,836 | $ 15,393 | ||
GE Healthcare | Sales Revenue, Net | |||||
Concentration risk percentage | 45% | 31% | 42% | 29% | |
GE Healthcare | Accounts and Other Receivables | |||||
Concentration risk percentage | 72% | 80% | |||
Accounts and other receivables | $ 5,000 | $ 5,000 | $ 12,300 |
NET INCOME PER COMMON SHARE (De
NET INCOME PER COMMON SHARE (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income per common share | ||||
Basic weighted average shares outstanding | 172,858 | 171,438 | 172,594 | 171,139 |
Dilutive effect of unvested restricted shares | 1,201 | 2,144 | 601 | 1,072 |
Diluted weighted average shares outstanding | 174,059 | 173,582 | 173,195 | 172,211 |
NET INCOME PER COMMON SHARE (_2
NET INCOME PER COMMON SHARE (Details 1) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Restricted Stock | ||||
Common stock equivalents excluded from computation of diluted earnings per share (in thousands) | 2 | 9 | 2,249 | 9 |
ACCOUNTS AND OTHER RECEIVABLE_3
ACCOUNTS AND OTHER RECEIVABLES (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
ACCOUNTS AND OTHER RECEIVABLES NET | ||
Trade receivables | $ 11,269 | $ 21,197 |
Due from employees | 1,837 | 0 |
Allowance for doubtful accounts and commission adjustments | (6,270) | (5,804) |
Accounts and other receivables | $ 6,836 | $ 15,393 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
INVENTORIES (Details) | ||
Raw materials | $ 754 | $ 744 |
Work in process | 55 | 4 |
Finished goods | 788 | 399 |
Inventories, net | $ 1,597 | $ 1,147 |
INVENTORIES NET (Details Narrat
INVENTORIES NET (Details Narrative) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
INVENTORIES (Details) | ||
Reserve For Slow Moving Inventory | $ 163,000 | $ 165,000 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLES (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
GOODWILL AND OTHER INTANGIBLES (Details) | ||
Goodwill, beginning balance | $ 15,722 | $ 15,688 |
Foreign currency translation adjustment | (67) | 34 |
Goodwill, ending balance | $ 15,655 | $ 15,722 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLES (Details 1) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Intangible assets, net | $ 1,735 | $ 2,041 |
Customer-Related [Member] | ||
Intangible assets, net | 1,413 | 1,552 |
Costs | 5,831 | 5,831 |
Accumulated amortization | 4,418 | 4,279 |
Patents and Technology | ||
Intangible assets, net | 35 | 140 |
Costs | 1,894 | 1,894 |
Accumulated amortization | 1,859 | 1,754 |
Software [Member] | ||
Intangible assets, net | 287 | 349 |
Costs | 2,351 | 3,459 |
Accumulated amortization | $ 2,064 | $ 3,110 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLES (Details 2) $ in Thousands | Dec. 31, 2021 USD ($) |
GOODWILL AND OTHER INTANGIBLES (Details) | |
2022 | $ 236 |
2023 | 340 |
2024 | 271 |
2025 | 200 |
2026 | 145 |
Total | $ 1,192 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLES (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
GOODWILL AND OTHER INTANGIBLES (Details) | |||||
Goodwill | $ 14,375,000 | $ 14,375,000 | $ 1,280,000 | ||
Amortization Expense | $ 164,000 | $ 214,000 | $ 315,000 | $ 428,000 |
OTHER ASSETS NET (Details)
OTHER ASSETS NET (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
OTHER ASSETS NET | ||
Deferred Commission Expense - Noncurrent | $ 2,168 | $ 2,018 |
Trade Receivables - Noncurrent | 335 | 368 |
Accrued Expenses - Other, Net Of Allowance | 71 | 60 |
Total | $ 2,574 | $ 2,446 |
ACCRUED EXPENSES AND OTHER LI_3
ACCRUED EXPENSES AND OTHER LIABILITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
ACCRUED EXPENSES AND OTHER LIABILITIES | ||
Accrued Compensation | $ 1,205 | $ 2,397 |
Accrued Expenses - Other | 1,275 | 1,799 |
Other Liabilities | 4,232 | 3,293 |
Accrued Expenses And Other Liabilities | $ 6,712 | $ 7,489 |
DEFERRED REVENUE (Details)
DEFERRED REVENUE (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Deferred Revenue, Beginning Balance | $ 26,954 | $ 18,484 | $ 24,965 | $ 17,704 |
Less: Current Portion | 18,583 | 12,613 | 18,583 | 12,613 |
Deferred Revenue, Ending Balance | 27,097 | 19,667 | 27,097 | 19,667 |
Long-term Deferred Revenue At End Of Year | 8,514 | 7,054 | 8,514 | 7,054 |
Commission Revenues | ||||
Additions | 3,575 | 3,092 | 8,267 | 5,705 |
Recognized As Revenue | (3,431) | (1,908) | (6,132) | (3,739) |
Information Technology Segment | ||||
Additions | 0 | 0 | 0 | 1 |
Recognized As Revenue | $ (1) | $ (1) | $ (3) | $ (2) |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - MedTech Note [Member] - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Interest Charges | $ 36,000 | $ 90,000 | ||
Fee For Legal Services | $ 48,000 | 48,000 | $ 95,000 | 95,000 |
Loss Included In Other (expense) Income | 71,000 | $ 33,000 | 55,000 | $ 20,000 |
Net Receivable From Related Party | $ 322,000 | $ 322,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) | 6 Months Ended | ||
May 10, 2019 USD ($) | Jun. 30, 2022 USD ($) integer | Mar. 31, 2022 USD ($) | |
Number Of States For Market Segments And Accounts | integer | 48 | ||
Lessee, Operating Lease, Description | for three additional years in New York and two additional years in Florida | ||
Operating Leases, rate | 3% | ||
Initial right-of-use assets | $ 378,000 | $ 207,000 | |
Employment Agreement For Annual Compensation | $ 500,000 | ||
Computer equipment and automobiles | |||
Lessee, Operating Lease, Description | operating leases ranging from two to four years for additional computer equipment and automobiles at various times in 2022 | ||
Initial right-of-use assets | $ 346,000 | $ 141,000 |