Digirad Corp. engages in the provision of mobile healthcare solutions. It operates through the following segments: Diagnostic Services, Mobile Healthcare, and Diagnostic Imaging. The Diagnostic Services segment offers imaging and monitoring services program as an alternative to purchasing equipment or outsourcing the procedures to another physician or imaging center. The Mobile Healthcare segment provides contract diagnostic imaging, including computerized tomography, magnetic resonance imaging, positron emission tomography, and healthcare expertise to hospitals. The Diagnostic Imaging segment develops solid-state gamma cameras, imaging systems and camera maintenance contracts integrated delivery networks, and federal institutions on a long-term contract basis. The company founded in 1997 and is headquartered in Suwanee, GA.
Our HoldCo Conversion and related acquisitions or investments could involve unknown risks that could harm our business and adversely affect our financial condition.
We are subject to particular risks associated with real estate ownership, which could result in unanticipated losses or expenses.
We rely on information technology in our operations, and any material failure, inadequacy, interruption or security failure of that technology could materially harm our business.
We may not be able to achieve the anticipated synergies and benefits from business acquisitions.
ATRM’s operating results could be adversely affected by changes in the cost and availability of raw materials.
ATRM has material weaknesses in its internal control over financial reporting and concluded that its disclosure controls and procedures and internal control over financial reporting were not effective as of December 31, 2018.
If KBS is unable to maintain or establish its relationships with independent dealers and contractors who sell its homes, KBS revenue could decline.
Due to the nature of ATRM’s business, many of its expenses are fixed costs and if there are decreases in demand for its products, it may adversely affect its operating results.
Certain actions taken in connection with reducing operating costs may have a negative impact on ATRM’s business.
Due to the nature of the work the Company and its subsidiaries perform, the Company may be subject to significant liability claims and disputes.
ATRM’s costs of doing business could increase as a result of changes in, expanded enforcement of, or adoption of new federal, state or local laws and regulations.
Our indebtedness could restrict our operations and make us more vulnerable to adverse economic conditions.
The SNB Loan Agreement governing our indebtedness contains restrictive covenants that will restrict our operating flexibility and require that we maintain specified financial ratios. If we cannot comply with these covenants, we may be in default under the SNB Loan Agreement.
Substantially all of our assets have been pledged to SNB as security for our indebtedness under the SNB Loan Agreement.
If we are unable to generate or borrow sufficient cash to make payments on our indebtedness, our financial condition would be materially harmed, our business could fail, and stockholders may lose all of their investment.
Increases in interest rates could adversely affect our results from operations and financial condition.
The Gerber Finance loan agreements contain certain covenants that restrict ATRM’s ability to engage in certain transactions and may impair its ability to respond to changing business and economic conditions.
ATRM’s inability to comply with the financial covenants under its loan agreements with Gerber Finance and Premier Bank could have a material adverse effect on its financial condition.
The ability of Digirad to use net operating loss carryforwards to offset future taxable income for U.S. income tax purposes may be limited.
The decrease in Diagnostic Services revenue compared to the prior year quarter was primarily due to the sale of our Telerhythmics business in October 2018, resulting in a loss of revenues of $0.9 million.
The increase in Mobile Healthcare revenue compared to the prior year quarter was primarily due to an increase in rental revenue of $0.2m in sublease and owned assets. The utilization of our interim rentals can vary in each period based on customers that are in the midst of new construction or refurbishing their current facilities.
The increase in Diagnostic Imaging revenue was due to more advanced camera sales compared to prior year quarter.