QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
(Address of principal executive offices) |
(Zip Code) |
Title of each class |
Trading symbol(s) |
Name of each exchange on which registered | ||
Large Accelerated filer |
☐ |
☒ | ||||
Non-accelerated filer |
☐ |
Smaller reporting company |
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Emerging growth company |
Page |
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PART I |
FINANCIAL INFORMATION |
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Item 1 |
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3 |
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4 |
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5 |
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6-7 |
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8-35 |
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Item 2 |
35-51 |
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Item 3 |
52 |
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Item 4 |
52 |
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PART II |
OTHER INFORMATION |
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Item 1 |
53 |
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Item 1A |
54 |
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Item 6 |
56 |
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57 |
September 30, |
December 31, |
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Assets |
2020 |
2019 |
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Current assets: |
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Cash and cash equivalents |
$ | $ | ||||||
Trade accounts receivable, net of allowance for doubtful accounts of $ |
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Inventory, net |
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Prepaid expenses and other current assets |
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Total current assets |
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Property and equipment, net of accumulated depreciation of $ |
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Operating lease assets |
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Other assets |
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Intangible assets, net of accumulated amortization of $ |
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Goodwill |
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Total assets |
$ | $ | ||||||
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Liabilities and Stockholders’ Equity |
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Current liabilities: |
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Accounts payable |
$ | $ | ||||||
Accrued and other expenses |
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Notes payable - current portion |
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Lease payable - current portion |
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Deferred revenue |
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Total current liabilities |
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Lease payable, long-term portion |
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Notes payable, long-term portion |
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Convertible debentures payable to non-related parties, at fair value |
— | |||||||
Convertible debentures payable to related parties, at fair value |
— | |||||||
Deferred revenue, long-term portion |
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Deferred tax |
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Total liabilities |
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Commitments and Contingencies (Note 7) |
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Stockholders’ equity: |
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Preferred stock, $ par value: authorized |
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Common stock, $ par value: authorized September 30, 2020 |
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Additional paid-in capital |
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Accumulated deficit |
( |
) | ( |
) | ||||
Treasury stock at cost, |
( |
) | ( |
) | ||||
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Total stockholders’ equity |
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Total liabilities and stockholders’ equity |
$ | $ | ||||||
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Three Months Ended September 30, |
Nine Months Ended September 30, |
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2020 |
2019 |
2020 |
2019 |
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Revenue: |
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Products |
$ | $ | $ | $ | ||||||||||||
Service and supplies |
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Total revenue |
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Cost of revenue: |
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Products |
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Service and supplies |
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Amortization and depreciation |
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Total cost of revenue |
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Gross profit |
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Operating expenses: |
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Engineering and product development |
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Marketing and sales |
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General and administrative |
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Amortization and depreciation |
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Total operating expenses |
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Loss from operations |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Interest expense |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Other income |
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Loss on extinguishment of debt |
— | — | ( |
) | — | |||||||||||
Loss on fair value of convertible debentures |
— | ( |
) | ( |
) | ( |
) | |||||||||
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Other expense, net |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Loss before income tax expense |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
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Tax expense |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
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Net loss and comprehensive loss |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
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Net loss per share: |
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Basic |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
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Diluted |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
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Weighted average number of shares used in computing loss per share: |
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Basic |
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Diluted |
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For the Nine Months ended September 30, |
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2020 |
2019 |
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(in thousands) |
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Cash flow from operating activities: |
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Net loss |
$ | ( |
) | $ | ( |
) | ||
Adjustments to reconcile net loss to net cash used for operating activities: |
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Amortization of Intangible Assets |
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Depreciation |
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Bad debt provision |
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Stock-based compensation |
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Amortization of debt discount and debt costs |
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Loss on extinguishment of debt |
— | |||||||
Deferred tax expense |
— | |||||||
Change in fair value of convertible debentures |
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Changes in operating assets and liabilities: |
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Accounts receivable |
( |
) | ||||||
Inventory |
( |
) | ( |
) | ||||
Prepaid and other current assets |
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Accounts payable |
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Accrued expenses |
( |
) | ||||||
Deferred revenue |
( |
) | ||||||
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Total adjustments |
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Net cash used for operating activities |
( |
) | ( |
) | ||||
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Cash flow from investing activities: |
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Additions to patents, technology and other |
( |
) | ( |
) | ||||
Additions to property and equipment |
( |
) | ( |
) | ||||
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Net cash used for investing activities |
( |
) | ( |
) | ||||
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Cash flow from financing activities: |
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Issuance of common stock pursuant to stock option plans |
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Issuance of common stock pursuant to Employee Stock Purchase Plan |
— | |||||||
Taxes paid related to restricted stock issuance |
( |
) | ( |
) | ||||
Principal payments of capital lease obligations |
— | ( |
) | |||||
Principal repayment of debt financing |
( |
) | ( |
) | ||||
Proceeds from Line of Credit |
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Repayment to Line of Credit |
( |
) | — | |||||
Proceeds from debt financing |
— | |||||||
Debt issuance costs |
— | |||||||
Proceeds from issuance of common stock, net |
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Net cash provided by financing activities |
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Increase in cash and equivalents |
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Cash and cash equivalents, beginning of period |
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Cash and cash equivalents, end of period |
$ | $ | ||||||
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Supplemental disclosure of cash flow information: |
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Interest paid |
$ | $ | ||||||
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Taxes paid |
$ | $ | ||||||
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Issuance of stock upon conversion of debentures |
— | |||||||
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Right-of-use |
$ | $ | ||||||
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See accompanying notes to condensed consolidated financial statements. |
Common Stock |
Additional Paid-in Capital |
Accumulated Deficit |
Treasury Stock |
Stockholders’ Equity |
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Number of Shares Issued |
Par Value |
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Balance at December 31, 2019 |
$ |
$ |
$ |
( |
) | $ |
( |
) | $ | |||||||||||||||
Issuance of common stock relative to vesting of restricted stock |
— | ( |
) | ( |
) | |||||||||||||||||||
Issuance of common stock pursuant to stock option plans |
— | — | ||||||||||||||||||||||
Stock Issuance Net |
— | — | ||||||||||||||||||||||
Issuance of common stock pursuant Employee Stock Purchase Plan |
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Issuance of stock upon conversion of Debentures |
— | — | ||||||||||||||||||||||
Stock-based compensation |
— | — |
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Net loss |
— | — |
— |
( |
) | — |
( |
) | ||||||||||||||||
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Balance at September 30, 2020 |
$ | $ | $ | ( |
) | $ | ( |
) | $ | |||||||||||||||
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Common Stock |
Additional Paid-in Capital |
Accumulated Deficit |
Treasury Stock |
Stockholders’ Equity |
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Number of Shares Issued |
Par Value |
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Balance at June 30, 2020 |
$ |
$ |
$ |
( |
) | $ |
( |
) | $ | |||||||||||||||
Issuance of common stock relative to vesting of restricted stock |
— | ( |
) | — | — | ( |
) | |||||||||||||||||
Issuance of common stock pursuant to stock option plans |
— | — | — | |||||||||||||||||||||
Stock Issuance Net |
— |
— | — | — | — | — | ||||||||||||||||||
Issuance of common stock pursuant Employee Stock Purchase Plan |
— | — | — | |||||||||||||||||||||
Issuance of stock upon conversion of Debentures |
— | — | — | — | — | — | ||||||||||||||||||
Stock-based compensation |
— | — |
— |
— |
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Net loss |
— | — | — | ( |
) | — | ( |
) | ||||||||||||||||
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Balance at September 30, 2020 |
$ | $ | $ | ( |
) | $ | ( |
) | $ | |||||||||||||||
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Common Stock |
Additional Paid-in Capital |
Accumulated Deficit |
Treasury Stock |
Stockholders’ Equity |
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Number of Shares Issued |
Par Value |
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Balance at December 31, 2018 |
$ | $ | $ | ( |
) | $ | ( |
) | $ | |||||||||||||||
Issuance of common stock relative to vesting of restricted stock shares forfeited for tax obligations |
( |
) | — | — | ( |
) | ||||||||||||||||||
Issuance of common stock pursuant to stock option plans |
— | — | ||||||||||||||||||||||
Stock Issuance net of issuance costs |
||||||||||||||||||||||||
Stock-based compensation |
— | — | — | — | ||||||||||||||||||||
Net loss |
— | — | — | ( |
) | — | ( |
) | ||||||||||||||||
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Balance at September 30, 2019 |
$ | $ | $ | ( |
) | $ | ( |
) | $ | |||||||||||||||
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Common Stock |
Additional Paid-in Capital |
Accumulated Deficit |
Treasury Stock |
Stockholders’ Equity |
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Number of Shares Issued |
Par Value |
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Balance at June 30, 2019 |
$ | $ | $ | ( |
) | $ | ( |
) | $ | |||||||||||||||
Issuance of common stock relative to vesting of restricted stock shares forfeited for tax obligations |
( |
) | — | — | ( |
) | ||||||||||||||||||
Issuance of common stock pursuant to stock option plans |
— | — | — | — | — | |||||||||||||||||||
Stock-based compensation |
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Net loss |
— | — | — | ( |
) | — |
( |
) | ||||||||||||||||
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Balance at September 30, 2019 |
$ | $ | $ | ( |
) | $ | ( |
) | $ |
Three months ended September 30, 2020 |
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Reportable Segments |
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Detection |
Therapy |
Total |
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Major Goods/Service Lines |
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Products |
$ | $ | $ | |||||||||
Service contracts |
||||||||||||
Supply and source usage agreements |
— | |||||||||||
Professional services |
— | |||||||||||
Other |
— | |||||||||||
$ | $ | $ | ||||||||||
Timing of Revenue Recognition |
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Goods transferred at a point in time |
$ | $ | $ | |||||||||
Services transferred over time |
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$ | $ | $ | ||||||||||
Sales Channels |
||||||||||||
Direct sales force |
$ | $ | $ | |||||||||
OEM partners |
— | |||||||||||
Channel partners |
— | |||||||||||
$ | $ | $ | ||||||||||
Nine months ended September 30, 2020 |
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Reportable Segments |
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Detection |
Therapy |
Total |
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Major Goods/Service Lines |
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Products |
$ | $ | $ | |||||||||
Service contracts |
||||||||||||
Supply and source usage agreements |
— | |||||||||||
Professional services |
— | |||||||||||
Other |
— | |||||||||||
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$ | $ | $ | ||||||||||
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Timing of Revenue Recognition |
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Goods transferred at a point in time |
$ | $ | $ | |||||||||
Services transferred over time |
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$ | $ | $ | ||||||||||
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Sales Channels |
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Direct sales force |
$ | $ | $ | |||||||||
OEM partners |
— | |||||||||||
Channel partners |
— | |||||||||||
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$ | $ | $ | ||||||||||
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Three months ended September 30, 2019 |
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Reportable Segments |
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Detection |
Therapy |
Total |
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Major Goods/Service Lines |
|
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Products |
$ | $ | $ | |||||||||
Service contracts |
||||||||||||
Supply and source usage agreements |
— | |||||||||||
Professional services |
— | |||||||||||
Other |
— | |||||||||||
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$ | $ | $ | ||||||||||
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Timing of Revenue Recognition |
|
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Goods transferred at a point in time |
$ | $ | $ | |||||||||
Services transferred over time |
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$ | $ | $ | ||||||||||
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Sales Channels |
|
|||||||||||
Direct sales force |
$ | $ | $ | |||||||||
OEM partners |
— | |||||||||||
Channel partners |
— | |||||||||||
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$ | $ | $ | ||||||||||
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Nine months ended September 30, 2019 |
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Reportable Segments |
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Detection |
Therapy |
Total |
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Major Goods/Service Lines |
||||||||||||
Products |
$ | $ | $ | |||||||||
Service contracts |
||||||||||||
Supply and source usage agreements |
— | |||||||||||
Professional services |
— | |||||||||||
Other |
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|
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$ | $ | $ | ||||||||||
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|
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Timing of Revenue Recognition |
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Goods transferred at a point in time |
$ | $ | $ | |||||||||
Services transferred over time |
||||||||||||
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$ | $ | $ | ||||||||||
|
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|||||||
Sales Channels |
||||||||||||
Direct sales force |
$ | $ | $ | |||||||||
OEM partners |
— | |||||||||||
Channel partners |
— | |||||||||||
|
|
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|
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|
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$ | $ | $ | ||||||||||
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Contract balances |
||||
Balance at September 30, 2020 |
||||
Receivables, which are included in “Trade accounts receivable” |
$ | |||
Contract assets, which are included in “Prepaid and other current assets” |
||||
Contract liabilities, which are included in “Deferred revenue” |
Contract liabilities |
September 30, 2020 |
December 31, 2019 |
||||||
Short term |
$ | $ | ||||||
Long term |
||||||||
Total |
$ | $ | ||||||
Nine Months Ended September 30, |
||||
Balance at beginning of period |
$ | |||
Deferral of revenue |
||||
Recognition of deferred revenue |
( |
) | ||
Balance at end of period |
$ | |||
Three Months Ended |
Nine Months Ended |
|||||||||||||||
September 30, |
September 30, |
|||||||||||||||
2020 |
2019 |
2020 |
2019 |
|||||||||||||
Net loss |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) | ||||
Shares used in the calculation of basic and diluted net loss per share |
||||||||||||||||
Diluted shares used in the calculation of net loss per share |
||||||||||||||||
Net loss per share - basic and dilute d |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) | ||||
As of September 30, |
||||||||
2020 |
2019 |
|||||||
Stock options |
||||||||
Restricted stock |
||||||||
Convertible Debentures |
— | |||||||
Total |
||||||||
As of September 30, 2020 |
As of December 31, 2019 |
|||||||
Raw materials |
$ | $ | ||||||
Work in process |
||||||||
Finished Goods |
||||||||
Inventory Gross |
||||||||
Inventory Reserve |
( |
) | ( |
) | ||||
Inventory Net |
$ | $ | ||||||
Input |
December 31, 2019 |
February 21, 2020 |
||||||
Company’s stock price |
$ | $ | ||||||
Conversion price |
||||||||
Remaining term (years) |
||||||||
Equity volatility |
% | N/A | ||||||
Risk free rate |
% | N/A | ||||||
1 Probabilty of default event |
% | N/A | ||||||
1 Utilization of Forced Conversion (if available) |
% | % | ||||||
1 Exercise of Default Redemption (if available) |
% | N/A | ||||||
1 Effective discount rate |
% | N/A | ||||||
1 Represents a Level 3 unobservable input, as defined in Note 8 - Fair Value Measurements, below. |
Convertible Debentures |
December 31, 2019 |
February 21, 2020 |
||||||
Fair value, in accordance with fair value option |
$ | $ | ||||||
Principal value outstanding |
$ | $ |
Amount Due |
||||
2020 |
$ | |||
2021 |
||||
2022 |
||||
2023 |
||||
2024 |
||||
Total |
$ | |||
Three Months Ended |
Nine Months Ended |
|||||||||||||||
September 30, |
September 30, |
|||||||||||||||
2020 |
2019 |
2020 |
2019 |
|||||||||||||
Cash interest expense |
$ | $ | $ | $ | ||||||||||||
Interest on convertible debentures |
||||||||||||||||
Accrual of notes payable final payment |
||||||||||||||||
Amortization of debt costs |
||||||||||||||||
Interest expense capital lease |
||||||||||||||||
Total interest expense |
$ | $ | $ | $ | ||||||||||||
Lease Cost |
Classification |
Three Months Ended September 30, 2020 |
Year Ended December 31, 2019 |
|||||||
Operating lease cost |
Operating expenses | $ | $ |
|||||||
Finance lease costs |
||||||||||
Amortization of leased assets |
Amortization and depreciation |
|||||||||
Interest on lease liabilities |
Interest expense | |||||||||
Total |
$ | $ |
||||||||
Three Months Ended September 30, 2020 |
||||
Cash paid from operating cash flows for operating leases |
$ | |||
Cash paid from operating cash flows for finance leases |
||||
Cash paid from financing cash flows for finance leases |
||||
As of September 30, 2020 |
||||
Weighted-average remaining lease term of operating leases (in years) |
||||
Weighted-average remaining lease term of finance leases (in years) |
— | |||
Weighted-average discount rate for operating leases |
% | |||
Weighted-average discount rate for finance leases |
As of September 30, 2020: |
Operating Leases |
Finance Leases |
Total |
|||||||||
2020 |
$ | — | ||||||||||
2021 |
— | |||||||||||
2022 |
— | |||||||||||
2023 |
— | |||||||||||
2024 |
— | |||||||||||
Total lease payments |
— | |||||||||||
Less: imputed interest |
( |
) | — | ( |
) | |||||||
Total lease liabilities |
— | |||||||||||
Less: current portion of lease liabilities |
( |
) | — | ( |
) | |||||||
Long-term lease liabilities |
$ | $ | — | $ |
||||||||
Three Months Ended |
Nine Months Ended | |||||||
September 30, |
September 30, | |||||||
19 |
19 | |||||||
Average risk-free interest rate |
||||||||
Expected dividend yield |
||||||||
Expected life |
||||||||
Expected volatility |
||||||||
Weighted average exercise price |
$ |
$ |
$ |
$ | ||||
Weighted average fair value |
$ |
$ |
$ |
$ |
Three Months Ended |
Nine Months Ended |
|||||||||||||||
September 30, |
September 30, |
|||||||||||||||
19 |
||||||||||||||||
Cost of revenue |
$ | $ | $ | $ | ||||||||||||
Engineering and product development |
||||||||||||||||
Marketing and sales |
||||||||||||||||
General and administrative |
||||||||||||||||
$ | $ | $ | $ | |||||||||||||
Remaining expense |
$ | |||
Weighted average term |
As of |
||||||||
September 30, |
||||||||
Aggregate intrinsic value |
2020 |
2019 |
||||||
Stock options |
$ | $ | ||||||
Restricted stock |
◾ |
Level 1 - Quoted prices in active markets for identical assets or liabilities. |
◾ |
Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. |
◾ |
Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value. |
Fair Value Measurements (in thousands) as of December 31, 2019 |
||||||||||||||||
Level 1 |
Level 2 |
Level 3 |
Total |
|||||||||||||
Assets |
||||||||||||||||
Money market accounts |
$ | $ | $ | — | $ | |||||||||||
Total Assets |
$ | $ | — | $ | — | $ | ||||||||||
Liabilities |
||||||||||||||||
Convertible debentures |
$ | — | $ | — | $ | $ | ||||||||||
Total Liabilities |
$ | — | $ | — | $ | $ | ||||||||||
Fair Value Measurements as of September 30, 2020 | ||||||||||||||||
Level 1 |
Level 2 |
Level 3 |
Total |
|||||||||||||
Assets |
||||||||||||||||
Money market accounts |
$ | $ | $ | $ | ||||||||||||
Total Assets |
$ | $ | — | $ | — | $ | ||||||||||
Convertible Debentures |
||||
Balance, December 31, 2019 |
$ | |||
Fair value adjustments |
||||
Conversion |
( |
) | ||
Balance as of September 30, 2020 |
$ | — | ||
• | significant underperformance relative to historical or projected future operating results; |
• | significant changes in the manner or use of the assets or the strategy for the Company’s overall business; |
• | significant negative industry or economic trends; |
• | significant decline in the Company’s stock price for a sustained period; and |
• | a decline in the Company’s market capitalization below net book value. |
Consolidated reporting unit |
Detection |
Therapy |
Total |
|||||||||||||
Accumulated Goodwill |
$ |
$ | — | $ | — | $ |
||||||||||
Accumulated impairment |
( |
) |
— |
— |
( |
) | ||||||||||
Fair value allocation |
( |
) | — | |||||||||||||
Acquisition of DermEbx and Radion |
— | — | ||||||||||||||
Acquisition measurement period adjustments |
— | — | ||||||||||||||
Acquisition of VuComp |
— | — | ||||||||||||||
Sale of MRI assets |
— | ( |
) | ( |
) | |||||||||||
Impairment |
— | — | ( |
) | ( |
) | ||||||||||
Prior to December 31, 2019 |
— | — | ||||||||||||||
Balance at September 30, 2020 |
$ | — | $ | $ | — | $ | ||||||||||
• |
A significant decrease in the market price of a long-lived asset (or asset group); |
• |
A significant adverse change in the extent or manner in which a long-lived asset (or asset group) is being used or in its physical condition; |
• |
A significant adverse change in legal factors or in the business climate that could affect the value of a long-lived asset (or asset group), including an adverse action or assessment by a regulator; |
• |
An accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of a long-lived asset (or asset group); and |
• |
A current operating period, or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset (or asset group). |
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Segment revenues: |
||||||||||||||||
Detection |
$ | $ | $ | $ | ||||||||||||
Therapy |
||||||||||||||||
Total Revenue |
$ | $ | $ | $ | ||||||||||||
Segment gross profit: |
||||||||||||||||
Detection |
$ | $ | $ | $ | ||||||||||||
Therapy |
$ | |||||||||||||||
Segment gross profit |
$ | $ | $ | $ | ||||||||||||
Segment operating income (loss): |
||||||||||||||||
Detection |
$ | $ | $ | $ | ||||||||||||
Therapy |
( |
) | ( |
) | ( |
) | $ | ( |
) | |||||||
Segment operating income (loss) |
$ | $ | ( |
) | $ | ( |
) | $ | ||||||||
General, administrative, depreciation and amortization expense |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
Interest expense |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Other income |
||||||||||||||||
Loss on extinguishment of debt |
— | — | ( |
) | — | |||||||||||
Fair value of convertible debentures |
— | ( |
) | ( |
) | ( |
) | |||||||||
Loss before income tax |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Three months ended September 30, |
||||||||||||||||
2020 |
2019 |
Change |
% Change |
|||||||||||||
Detection revenue |
||||||||||||||||
Product revenue |
$ |
3,889 |
$ |
4,749 |
$ |
(860 |
) |
(18.1 |
)% | |||||||
Service revenue |
1,402 |
1,338 |
64 |
4.8 |
% | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Subtotal |
5,291 |
6,087 |
(796 |
) |
(13.1 |
)% | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Therapy revenue |
||||||||||||||||
Product revenue |
649 |
407 |
242 |
59.5 |
% | |||||||||||
Service revenue |
1,189 |
1,363 |
(174 |
) |
(12.8 |
)% | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Subtotal |
1,838 |
1,770 |
68 |
3.8 |
% | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total revenue |
$ |
7,129 |
$ |
7,857 |
$ |
(728 |
) |
(9.3 |
)% | |||||||
|
|
|
|
|
|
|
|
Nine months ended September 30, |
||||||||||||||||
2020 |
2019 |
Change |
% Change |
|||||||||||||
Detection revenue |
||||||||||||||||
Product revenue |
$ | 9,691 | $ | 11,347 | $ | (1,656 | ) | (14.6 | )% | |||||||
Service revenue |
4,194 | 4,117 | 77 | 1.9 | % | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Subtotal |
13,885 | 15,464 | (1,579 | ) | (10.2 | )% | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Therapy revenue |
||||||||||||||||
Product revenue |
1,529 | 1,984 | (455 | ) | (22.9 | )% | ||||||||||
Service revenue |
3,833 | 4,511 | (678 | ) | (15.0 | )% | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Subtotal |
5,362 | 6,495 | (1,133 | ) | (17.4 | )% | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total revenue |
$ | 19,247 | $ | 21,959 | $ | (2,712 | ) | (12.4 | )% | |||||||
|
|
|
|
|
|
|
|
Three months ended September 30, |
||||||||||||||||
2020 |
2019 |
Change |
% Change |
|||||||||||||
Products |
$ | 1,345 | $ | 809 | $ | 536 | 66.3 | % | ||||||||
Service and supplies |
667 | 891 | (224 | ) | (25.1 | )% | ||||||||||
Amortization and depreciation |
92 | 103 | (11 | ) | (10.7 | )% | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total cost of revenue |
$ | 2,104 | $ | 1,803 | $ | 301 | 16.7 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Gross profit |
$ | 5,025 | $ | 6,054 | $ | (1,029 | ) | (17.0 | )% |
Three months ended September 30, |
||||||||||||||||
2020 |
2019 |
Change |
% Change |
|||||||||||||
Detection gross profit |
$ | 4,227 | $ | 5,051 | $ | (824 | ) | (16.3 | %) | |||||||
Therapy gross profit |
798 | 1,003 | (205 | ) | (20.4 | %) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Gross profit |
$ | 5,025 | $ | 6,054 | $ | (1,029 | ) | (17.0 | %) | |||||||
|
|
|
|
|
|
|
|
Nine months ended September 30, |
||||||||||||||||
2020 |
2019 |
Change |
% Change |
|||||||||||||
Products |
$ | 2,899 | $ | 2,134 | $ | 765 | 35.8 | % | ||||||||
Service and supplies |
2,169 | 2,466 | (297 | ) | (12.0 | )% | ||||||||||
Amortization and depreciation |
287 | 297 | (10 | ) | (3.4 | )% | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total cost of revenue |
$ | 5,355 | $ | 4,897 | $ | 458 | 9.4 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Gross profit |
$ | 13,892 | $ | 17,062 | $ | (3,170 | ) | (18.6 | )% |
Nine months ended September 30, |
||||||||||||||||
2020 |
2019 |
Change |
% Change |
|||||||||||||
Detection gross profit |
$ | 11,227 | $ | 12,874 | $ | (1,647 | ) | (12.8 | %) | |||||||
Therapy gross profit |
2,665 | 4,188 | (1,523 | ) | (36.4 | %) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Gross profit |
$ | 13,892 | $ | 17,062 | $ | (3,170 | ) | (18.6 | %) | |||||||
|
|
|
|
|
|
|
|
Three months ended September 30, |
||||||||||||||||
Operating expenses: |
2020 |
2019 |
Change |
Change % |
||||||||||||
Engineering and product development |
$ | 1,849 | $ | 2,485 | $ | (636 | ) | (25.6 | )% | |||||||
Marketing and sales |
2,979 | 3,588 | (609 | ) | (17.0 | )% | ||||||||||
General and administrative |
1,834 | 1,872 | (38 | ) | (2.0 | )% | ||||||||||
Amortization and depreciation |
52 | 69 | (17 | ) | (24.6 | )% | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total operating expenses |
$ | 6,714 | $ | 8,014 | $ | (1,300 | ) | (16.2 | )% | |||||||
|
|
|
|
|
|
|
|
Nine months ended September 30, |
||||||||||||||||
Operating expenses: |
2020 |
2019 |
Change |
Change % |
||||||||||||
Engineering and product development |
$ | 5,938 | $ | 6,751 | $ | (813 | ) | (12.0 | )% | |||||||
Marketing and sales |
9,218 | 9,281 | (63 | ) | (0.7 | )% | ||||||||||
General and administrative |
6,476 | 5,276 | 1,200 | 22.7 | % | |||||||||||
Amortization and depreciation |
153 | 206 | (53 | ) | (25.7 | )% | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total operating expenses |
$ | 21,785 | $ | 21,514 | $ | 271 | 1.3 | % | ||||||||
|
|
|
|
|
|
|
|
Three months ended September 30, |
||||||||||||||||
2020 |
2019 |
Change |
Change % |
|||||||||||||
Interest expense |
$ | (115 | ) | $ | (193 | ) | $ | 78 | (40.4 | )% | ||||||
Other income |
10 | 103 | (93 | ) | (90.3 | )% | ||||||||||
Loss on fair value of debentures |
— | (900 | ) | 900 | (100.0 | )% | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | (105 | ) | $ | (990 | ) | $ | 885 | (89.4 | )% | |||||||
|
|
|
|
|
|
|
|
|||||||||
Tax benefit (expense) |
$ | (3 | ) | $ | (6 | ) | $ | 3 | (50.0 | )% |
Nine months ended September 30, |
||||||||||||||||
2020 |
2019 |
Change |
Change % |
|||||||||||||
Interest expense |
$ | (360 | ) | $ | (604 | ) | $ | 244 | (40.4 | )% | ||||||
Other income |
85 | 226 | (141 | ) | (62.4 | )% | ||||||||||
Loss on extinguishment of debt |
(341 | ) | — | (341 | ) | 0.0 | % | |||||||||
Loss on fair value of debentures |
(7,464 | ) | (5,340 | ) | (2,124 | ) | 39.8 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | (8,080 | ) | $ | (5,718 | ) | $ | (2,362 | ) | 41.3 | % | ||||||
|
|
|
|
|
|
|
|
|||||||||
Tax benefit (expense) |
$ | (34 | ) | $ | (33 | ) | $ | (1 | ) | 3.0 | % |
For the nine-months ended September 30, |
||||||||
2020 |
2019 |
|||||||
(in thousands) | ||||||||
Net cash used for operating activities |
$ | (6,083 | ) | $ | (4,772 | ) | ||
Net cash used for investing activities |
(286 | ) | (219 | ) | ||||
Net cash provided by financing activities |
13,689 | 10,233 | ||||||
|
|
|
|
|||||
Increase in cash and equivalents |
$ | 7,320 | $ | 5,242 | ||||
|
|
|
|
Contractual Obligations |
Payments due by period |
|||||||||||||||||||
Total |
Less than 1 year |
1-3 years |
3-5 years |
5+ years |
||||||||||||||||
Operating Lease Obligations |
$ | 2,262 | $ | 918 | $ | 1,337 | $ | 7 | $ | — | ||||||||||
Capital Lease Obligations |
1 | 1 | — | — | — | |||||||||||||||
Settlement Obligations |
463 | 463 | — | — | — | |||||||||||||||
Notes Payable - principal and interest |
7,946 | 590 | 5,682 | 1,674 | — | |||||||||||||||
Other Commitments |
4,179 | 4,179 | — | — | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Contractual Obligations |
$ |
14,851 |
$ |
6,151 |
$ |
7,019 |
$ |
1,681 |
$ |
— |
||||||||||
|
|
|
|
|
|
|
|
|
|
Item 3. |
Quantitative and Qualitative Disclosures about Market Risk |
Item 4. |
Controls and Procedures |
Item 1. |
Legal Proceedings |
Item 1A. |
Risk Factors: |
Item 6. |
Exhibits |
Exhibit No. |
Description | |
31.1 * | Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
31.2 * | Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
32.1 ** | Certification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
32.2 ** | Certification of Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
101 * | The following materials formatted in XBRL (eXtensible Business Reporting Language); (i) Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019, (ii) Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2020 and 2019, (iii) Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2020 and 2019, (iv) Condensed Statements of Stockholders’ Equity for the three and nine months ended September 30, 2020 and September 30, 2019 and (v) Notes to Consolidated Financial Statements. | |
104 * | Cover Page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in Exhibits 101). |
* | Filed herewith |
** | Furnished herewith |
iCAD, Inc. | ||
(Registrant) |
Date : November 6, 2020 |
By: | /s/ Michael Klein | ||||
Name: | Michael Klein | |||||
Title: | Chief Executive Officer (Principal Executive Officer) |
Date : November 6, 2020 |
By: | /s/ R. Scott Areglado | ||||
Name: | R. Scott Areglado | |||||
Title: | Chief Financial Officer (Principal Financial Officer) |