Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 01, 2023 | Jun. 30, 2022 | |
Document Information Line Items | |||
Entity Registrant Name | Sensus Healthcare, Inc. | ||
Trading Symbol | SRTS | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 16,396,766 | ||
Entity Public Float | $ 113,764,116 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001494891 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 001-37714 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 27-1647271 | ||
Entity Address, Address Line One | 851 Broken Sound Pkwy | ||
Entity Address, Address Line Two | NW #215, Boca Raton | ||
Entity Address, State or Province | FL | ||
Entity Address, City or Town | Florida | ||
Entity Address, Postal Zip Code | 33487 | ||
City Area Code | (561) | ||
Local Phone Number | 922-5808 | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Security Exchange Name | NASDAQ | ||
Entity Interactive Data Current | Yes | ||
Auditor Name | Marcum llp | ||
Auditor Location | Fort Lauderdale, FL. | ||
Auditor Firm ID | 688 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 25,520 | $ 14,519 |
Accounts receivable, net | 17,299 | 12,130 |
Inventories | 3,501 | 1,759 |
Prepaid and other current assets | 6,921 | 2,837 |
Total current assets | 53,241 | 31,245 |
Property and equipment, net | 243 | 605 |
Intangibles, net | 50 | 146 |
Deposits | 24 | 75 |
Deferred tax asset | 1,713 | |
Operating lease right-of-use assets, net | 996 | 169 |
Other noncurrent asset | 468 | |
Total assets | 56,735 | 32,240 |
Current liabilities | ||
Accounts payable and accrued expenses | 5,521 | 4,058 |
Product warranties | 403 | 508 |
Operating lease liabilities, current portion | 190 | 174 |
Loan payable | 51 | |
Income tax payable | 890 | |
Deferred revenue, current portion | 693 | 1,172 |
Total current liabilities | 7,697 | 5,963 |
Operating lease liabilities | 830 | |
Deferred revenue, net of current portion | 139 | 262 |
Total liabilities | 8,666 | 6,225 |
Commitments and contingencies | ||
Stockholders’ equity | ||
Preferred stock, 5,000,000 shares authorized and none issued and outstanding | ||
Common stock, $0.01 par value – 50,000,000 authorized; 16,902,761 issued and 16,390,419 outstanding at December 31, 2022; 16,694,311 issued and 16,617,274 outstanding at December 31, 2021 | 169 | 167 |
Additional paid-in capital | 45,031 | 44,115 |
Treasury stock, 512,342 and 77,037 shares at cost, at December 31, 2022 and December 31, 2021, respectively | (3,433) | (325) |
Retained earnings (Accumulated deficit) | 6,302 | (17,942) |
Total stockholders’ equity | 48,069 | 26,015 |
Total liabilities and stockholders’ equity | $ 56,735 | $ 32,240 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value (in Dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized | 50,000,000 | 50,000,000 |
Common stock share issued | 16,902,761 | 16,694,311 |
Common stock shares outstanding | 16,390,419 | 16,617,274 |
Treasury stock, shares at cost | 512,342 | 77,037 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | ||
Revenues | $ 44,532 | $ 27,042 |
Cost of sales | 14,904 | 10,054 |
Gross profit | 29,628 | 16,988 |
Operating expenses | ||
Selling and marketing | 6,329 | 4,838 |
General and administrative | 5,008 | 4,594 |
Research and development | 3,460 | 3,436 |
Total operating expenses | 14,797 | 12,868 |
Income from operations | 14,831 | 4,120 |
Other income (expense): | ||
Gain (loss) on sale of assets | 12,779 | (1) |
Interest income | 382 | 2 |
Interest expense | (2) | (2) |
Other income (expense), net | 13,159 | (1) |
Income before income tax | 27,990 | 4,119 |
Provision for income taxes | 3,746 | |
Net income | $ 24,244 | $ 4,119 |
Net income per share – basic (in Dollars per share) | $ 1.47 | $ 0.25 |
diluted (in Dollars per share) | $ 1.46 | $ 0.25 |
Weighted average number of shares used in computing net income per share – basic (in Shares) | 16,480,991 | 16,476,122 |
diluted (in Shares) | 16,618,214 | 16,503,134 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders’ Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Treasury Stock | Retained Earnings (Accumulated Deficit) | Total |
Balance at Dec. 31, 2020 | $ 166 | $ 43,701 | $ (310) | $ (22,061) | $ 21,496 |
Balance (in Shares) at Dec. 31, 2020 | 16,564,311 | (73,208) | |||
Stock-based compensation | $ 1 | 414 | 415 | ||
Stock-based compensation (in Shares) | 130,000 | ||||
Surrender of shares for tax withholding on stock-based compensation | $ (15) | (15) | |||
Surrender of shares for tax withholding on stock-based compensation (in Shares) | (3,829) | ||||
Net income | 4,119 | 4,119 | |||
Balance at Dec. 31, 2021 | $ 167 | 44,115 | $ (325) | (17,942) | 26,015 |
Balance (in Shares) at Dec. 31, 2021 | 16,694,311 | (77,037) | |||
Stock-based compensation | 187 | 187 | |||
Stock-based compensation (in Shares) | 77,000 | ||||
Exercise of stock options | $ 2 | 729 | 731 | ||
Exercise of stock options (in Shares) | 131,450 | ||||
Stock repurchase | $ (2,999) | (2,999) | |||
Stock repurchase (in Shares) | (425,209) | ||||
Surrender of shares for tax withholding on stock-based compensation | $ (109) | (109) | |||
Surrender of shares for tax withholding on stock-based compensation (in Shares) | (10,096) | ||||
Net income | 24,244 | 24,244 | |||
Balance at Dec. 31, 2022 | $ 169 | $ 45,031 | $ (3,433) | $ 6,302 | $ 48,069 |
Balance (in Shares) at Dec. 31, 2022 | 16,902,761 | (512,342) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities | ||
Net income | $ 24,244 | $ 4,119 |
Adjustments to reconcile net income to net cash and cash equivalents used in operating activities: | ||
Bad debt expense | 145 | 78 |
Depreciation and amortization | 315 | 613 |
Loss on sale of property and equipment | 47 | |
Gain on sale of assets | (12,779) | |
Loss on disposal of assets | 197 | |
Gain resulting from termination of lease | (38) | |
Provision for product warranties | 722 | 530 |
Stock-based compensation | 187 | 415 |
Impairment of intangible assets | 88 | |
Deferred income taxes | (1,713) | |
Decrease (increase) in: | ||
Accounts receivable | (5,314) | (8,432) |
Inventories | (3,191) | 2,735 |
Deposits | 51 | |
Prepaid and other current assets | (3,869) | (557) |
Other noncurrent asset | (468) | |
Increase (decrease) in: | ||
Accounts payable and accrued expenses | 799 | 962 |
Operating lease liability | (199) | |
Income tax payable | 890 | |
Deferred revenue | (602) | (637) |
Product warranties | (827) | (209) |
Total adjustments | (25,656) | (4,405) |
Net cash used in operating activities | (1,412) | (286) |
Cash flows from investing activities | ||
Acquisition of property and equipment | (159) | (128) |
Proceeds from sale of assets | 15,000 | 257 |
Net cash provided by investing activities | 14,841 | 129 |
Cash flows from financing activities | ||
Repurchase of common stock | (2,999) | |
Withholding taxes on stock-based compensation | (109) | (15) |
Repayment of loan payable | (51) | (216) |
Exercise of stock options | 731 | |
Net cash used in financing activities | (2,428) | (231) |
Net increase (decrease) in cash and cash equivalents | 11,001 | (388) |
Cash and cash equivalents – beginning of period | 14,519 | 14,907 |
Cash and cash equivalents – end of period | 25,520 | 14,519 |
Supplemental disclosure of cash flow information: | ||
Interest paid | 2 | 2 |
Income tax paid | 4,570 | |
Supplemental schedule of noncash investing and financing transactions: | ||
Operating lease right-of-use asset and lease liability increase from lease modification | 1,045 | |
Decrease in operating lease right-of-use asset and operating lease liabilities from early termination of lease | 655 | |
Transfer of inventory to property and equipment | $ 48 | $ 66 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Note 1 — Organization and Summary of Significant Accounting Policies Description of the Business Sensus Healthcare, Inc. (together, with its subsidiary, unless the context otherwise indicates, “Sensus” or the “Company”) is a manufacturer of radiation therapy devices and sells the devices to healthcare providers globally through its distribution and marketing network. The Company operates as one segment from its corporate headquarters located in Boca Raton, Florida. Basis of Presentation and Principles of Consolidation These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and include the accounts of the Company and its subsidiary. Accounts and transactions between consolidated entities have been eliminated. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, including disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting periods. Actual results could differ from those estimates. Revenue Recognition The Company’s revenue derives from sales of the Company’s devices and services related to maintaining and repairing the devices as part of a service contract or on an ad-hoc basis without a service contract. The Company provides warranties, generally for one year, in conjunction with the sale of its products. These warranties entitle the customer to repair, replacement, or modification of the defective product, subject to the terms of the relevant warranty. The Company has determined that these warranties do not represent separate performance obligations, as the customer does not have the option to purchase the warranty separately and the warranty does not provide the customer with a service in addition to the assurance that the product complies with agreed-upon specifications. The Company records an estimate of future warranty claims at the time it recognizes revenue from the sale of the device based upon management’s estimate of the future claims rate. Revenue is recognized upon transfer of control of promised goods or services to customers when the product is shipped or the service is rendered, based on the amount the Company expects to receive in exchange for those goods or services. The Company enters into contracts that can include multiple services, which are accounted for separately if they are determined to be distinct. To determine the for in which a customer promises consideration in a form other than cash, the Company measures the estimated fair value of the noncash consideration at contract inception. If the Company cannot reasonably estimate the fair value of the noncash consideration, it measures the consideration indirectly by reference to the of the products promised to the customer or class of customer in exchange for the consideration. The revenues from service contracts are recognized over the service contract period on a straight-line basis. In the event that a customer does not sign a service contract, but requests maintenance or repair services after the warranty expires, the Company recognizes revenue when the service is rendered. The Company has determined that in practice no significant discount is given on the service contract when it is offered with the device purchase as compared to when it is sold on a stand-alone basis. The service level provided is identical whether the service contract is purchased on a stand-alone basis or together with the device. There is no termination provision in the service contract or any penalties in practice for cancellation of the service contract. The components of disaggregated revenue are as follows: For the Years Ended December 31, (in thousands) 2022 2021 Product Revenue - recognized at a point in time $ 40,007 $ 22,217 Service Revenue - recognized at a point in time 1,351 1,712 Service Revenue - recognized over time 3,174 3,113 Total Revenue $ 44,532 $ 27,042 The Company operates in a highly regulated environment, primarily in the U.S. dermatology market, in which state regulatory approval is sometimes required prior to the customer being able to use the product. In cases where such regulatory approval is pending, revenue is deferred until such time as regulatory approval is obtained. Deferred revenue activity for 2022 and 2021 is as follows: (in thousands) Product Service Total December 31, 2020 $ 23 $ 2,048 $ 2,071 Revenue recognized (23 ) (3,113 ) (3,136 ) Amounts invoiced 97 2,402 2,499 December 31, 2021 $ 97 $ 1,337 $ 1,434 Revenue recognized (1,015 ) (3,174 ) (4,189 ) Amounts invoiced 963 2,624 3,587 December 31, 2022 $ 45 $ 787 $ 832 The Company does not disclose information about remaining performance obligations of deposits for products that have original expected durations of one year or less. Estimated service revenue to be recognized in the future related to the performance obligations that are unsatisfied (or partially unsatisfied) as of December 31, 2022 is as follows: (in thousands) Year Service Revenue 2023 $ 648 2024 96 2025 23 2026 20 Total $ 787 The Company pays commissions for equipment sales. Because the recovery of commissions is expected to occur from product revenue within one year, the Company charges commissions to expense as incurred. Shipping and handling costs are expensed as incurred and are included in cost of sales. Concentration Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash and cash equivalents and accounts receivable. On March 10, 2023, Silicon Valley Bank (“SVB”) was closed by California and federal regulatory agencies. As a result of these actions, the FDIC established Silicon Valley Bridge Bank (the “Bridge Bank”). Based upon information available to us, we believe that the Bridge Bank has assumed all contracts SVB entered into prior to its failure, that the Bridge Bank is expected to continue to perform under those contracts, and that all counterparties are consequently expected to perform under those contracts. One customer in the U.S. accounted for approximately 73% and 57% of revenue for the years ended December 31, 2022 and 2021, respectively, and 91% and 94% of the accounts receivable as of December 31, 2022 and 2021, respectively. Segment and Geographical Information The following table illustrates total revenue for the years ended December 31, 2022 and 2021 by geographic region. For the Year Ended December 31, (in thousands) 2022 2021 United States $ 41,976 94 % $ 25,616 95 % China 2,452 6 % 1,410 5 % Other 104 0 % 16 0 % Total Revenue $ 44,532 100 % $ 27,042 100 % Fair Value of Financial Instruments Carrying amounts of cash equivalents, accounts receivable, accounts payable and the revolving credit facility approximate fair value due to their relative short maturities. Fair Value Measurements The Company uses a fair value hierarchy that prioritizes inputs to valuation approaches used to measure fair value. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. Assets and liabilities measured and reported at fair value are classified and disclosed in one of the following categories: Level 1 Inputs: Quoted prices (unadjusted) in active markets for identical assets or liabilities at the reporting date. ● Level 1 assets may include listed mutual funds, ETFs and listed equities Level 2 Inputs: Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities that are not active; quotes from pricing services or brokers for which the Company can determine that orderly transactions took place at the quoted price or that the inputs used to arrive at the price are observable; and inputs other than quoted prices that are observable, such as models or other valuation methodologies. ● Level 2 assets may include debt securities and foreign currency exchange contracts that have inputs to the valuations that generally can be corroborated by observable market data. Level 3 Inputs: Unobservable inputs for the valuation of the asset or liability, which may include nonbinding broker quotes. ● Level 3 assets include investments for which there is little, if any, market activity. These inputs require significant management judgment or estimation. Significance of Inputs: The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument. Foreign Currency The Company’s foreign operation functional currency is the U.S. dollar. The Company considers its Israel subsidiary an extension of the parent company operations in the United States. The cash flow in the foreign operation depends primarily on the funding by the parent company. Cash and Cash Equivalents Cash and cash equivalents primarily consists of cash, money market funds and short-term, highly liquid investments with original maturities of three months or less. For purposes of the statements of cash flows, the Company considers all highly liquid financial instruments with a maturity of three months or less when purchased to be a cash equivalent. Accounts Receivable The Company does business and extends credit based on an evaluation of each customer’s financial condition, generally without requiring collateral. Exposure to losses on receivables is expected to vary by customer due to the financial condition of each customer. The Company monitors exposure to credit losses and maintains allowances for anticipated losses considered necessary under the circumstances. The allowance for doubtful accounts was approximately $107 thousand and $69 thousand as of December 31, 2022 and 2021, respectively. Bad debt expense for the years ended December 31, 2022 and 2021 was approximately $145 thousand and $78 thousand, respectively. Inventories Inventories consist of finished product and components and are stated at the lower of cost and net realizable value, determined using the first-in-first-out method. Prepaid and Other Current Assets Prepaid and other current assets consists of the following: For the Years Ended December 31, (in thousands) 2022 2021 Deposits on inventories $ 6,337 $ 2,529 Prepaid insurance 46 40 Other current assets 538 268 Total $ 6,921 $ 2,837 Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation on property and equipment is calculated on the straight-line basis over the estimated useful life of each asset. Maintenance and repairs are expensed as incurred; expenditures that enhance the value of property or extend their useful lives are capitalized. When assets are sold or returned, the cost and related accumulated depreciation are removed from the accounts and the resulting gain or loss is included in income. Inventory units designated for customer demonstrations, as part of the sales process, are reclassified to property and equipment and the depreciation is recorded to selling and marketing expense. Property and equipment for demonstrations and other programs that were reclassified to or from inventory was approximately $48 thousand and $66 thousand for the years ended December 31, 2022 and 2021, respectively. Intangible Assets Intangible assets are comprised of the Company’s patent rights and finite-lived intangible assets acquired in acquisitions. The carrying value of finite-lived assets and their remaining useful lives are reviewed at least annually to determine if triggering events have occurred that may indicate a potential impairment or revision to the amortization period. For finite-lived intangible assets, if potential impairment circumstances are considered to exist, the Company will perform a recoverability test using an undiscounted cash flow analysis. Actual results could differ from these cash flow estimates, which could materially impact the impairment conclusion. If the carrying value of the asset is determined not to be recoverable based on the undiscounted cash flow test, the difference between the carrying value of the asset and its current fair value would be recognized as an expense in the period in which the impairment occurs. Impairment charges of $0 and $88 thousand were recorded for intangible assets for the years ended December 31, 2022 and 2021, respectively. Research and Development Research and development costs related to products under development by the Company and quality and regulatory costs and are expensed as incurred. Earnings Per Share Basic net income per share is calculated by dividing the net income by the weighted-average number of common shares outstanding for the period using the treasury stock method for options, restricted stock and warrants. Diluted net income per share is computed by giving effect to all potential dilutive common share equivalents outstanding for the period. The factors used in the earnings per share computation are as follows: For the Years Ended December 31, (in thousands) 2022 2021 Basic Net income $ 24,244 $ 4,119 Weighted average common shares outstanding 16,481 16,476 Basic earnings per share $ 1.47 $ 0.25 Diluted Net income $ 24,244 $ 4,119 Weighted average common shares outstanding 16,481 16,476 Dilutive effects of: Assumed exercise of stock options 55 - Restricted stock awards 82 27 Dilutive shares 16,618 16,503 Diluted earnings per share $ 1.46 $ 0.25 Equity-Based Compensation Pursuant to relevant accounting guidance related to accounting for equity-based compensation, the Company is required to recognize all share-based payments to non-employees and employees in the financial statements based on grant-date fair values. The Company has accounted for issuances of shares, options, and warrants in accordance with the guidance, which requires the recognition of expense, based on grant-date fair values, over the service period, which is generally the period over which the shares, options and warrants vest. Advertising Costs Advertising and promotion costs are charged to expense as incurred. Advertising and promotion costs included in selling and marketing expense in the accompanying statements of income amounted to approximately $871 thousand and $460 thousand for the years ended December 31, 2022 and 2021, respectively. Leases The Company evaluates arrangements at inception to determine if an arrangement is or contains a lease. Operating lease assets represent the Company’s right to control an underlying asset for the lease term, and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Control of an underlying asset is conveyed to the Company if the Company obtains the rights to direct the use of and to obtain substantially all of the economic benefits from using the underlying asset. Operating lease assets and liabilities are recognized at the commencement date of the lease based upon the present value of lease payments over the lease term. When determining the lease term, the Company includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company uses an incremental borrowing rate that the Company would expect to incur for a fully collateralized loan over a similar term under similar economic conditions to determine the present value of the lease payments. The Company has lease agreements which include lease and non-lease components, which the Company has elected to account for as a single lease component for all classes of underlying assets. The lease payments used to determine the Company’s operating lease assets may include lease incentives, and stated rent increases are recognized in the Company’s operating lease assets in the Company’s consolidated balance sheets. Operating lease assets are amortized to rent expense over the lease term and included in operating expenses in the consolidated statements of income. Income Taxes The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on differences between the financial statement carrying amounts and the tax bases of the assets and liabilities using the enacted tax rates in effect in the years in which the differences are expected to reverse. A valuation allowance against deferred tax assets is recorded if, based on the weight of the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. Uncertain tax positions are recognized in the financial statements only if that position is more likely than not to be sustained upon examination by taxing authorities, based on the technical merits of the position. The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense. Recent Accounting Standard In March 2020, the Financial Accounting Standard Board (FASB) issued ASU 2020-4, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting Deferral of the Sunset Date of Topic 848 |
Disposition
Disposition | 12 Months Ended |
Dec. 31, 2022 | |
Disposition [Abstract] | |
DISPOSITION | Note 2 – Disposition In April 2021, the Company sold certain property and equipment to a former employee for approximately $257 thousand. During the year ended December 31, 2021, the Company recorded $88 thousand of impairment charges on intangible assets and $47 thousand for a loss on the sale of property and equipment associated with this transaction. On February 25, 2022, the Company sold its Sculptura assets for $15 million in cash. The sale price was allocated to the existing assets and liabilities based on the book value at the date of the transaction. A summary of the assets and liabilities sold is as follows: ( in thousands Book Value Cash $ 15,000 Inventory (1,401 ) Property and equipment (157 ) Other liabilities (663 ) Gain on asset sale $ 12,779 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | Note 3 — Property and Equipment Property and equipment consists of the following: As of As of Estimated (in thousands) 2022 2021 Useful Lives Operations equipment $ 1,222 $ 1,760 3 years Tradeshow and demo equipment 990 927 3 years Computer equipment 162 129 3 years Subtotal 2,374 2,816 Less accumulated depreciation (2,131 ) (2,211 ) Property and Equipment, Net $ 243 $ 605 Depreciation expense was approximately $219 thousand and $509 thousand for the years ended December 31, 2022 and 2021, respectively. Accumulated depreciation on asset disposals was approximately $435 thousand and $88 thousand for the years ended December 31, 2022 and 2021, respectively. |
Intangibles
Intangibles | 12 Months Ended |
Dec. 31, 2022 | |
Intangibles [Abstract] | |
INTANGIBLES | Note 4 — INTANGIBLES Patent Customer Trade (in thousands) Rights Relationships Names Total December 31, 2020 $ 241 $ 84 $ 13 $ 338 Impaired assets - (81 ) (7 ) (88 ) Amortization expense (96 ) (2 ) (6 ) (104 ) December 31, 2021 $ 145 $ 1 $ - $ 146 Amortization expense (96 ) - - (96 ) December 31, 2022 $ 49 $ 1 $ - $ 50 Amortization expense was approximately $96 thousand and $104 thousand for the years ended December 31, 2022 and 2021, respectively. The weighted-average amortization period for intangible assets is 0.7 years in total. Estimated amortization expense for the finite-lived intangible assets for each of succeeding years is as follows: For the Year Ending December 31, (in thousands) 2023 $ 49 2024 - 2025 - 2026 1 Total $ 50 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
DEBT | Note 5 — DEBT The Company has had a revolving credit facility with SVB that, as of December 31, 2021, provided for maximum borrowings equal to the lesser of (a) the $10 million commitment amount or (b) the borrowing base plus a $3 million non-formula sublimit. In April 2022, the term was extended to April 1, 2024, and the maximum borrowings were increased to the lesser of (a) the $15 million commitment amount or (b) the borrowing base plus a $7.5 million non-formula sublimit. At December 31, 2022, the available borrowing was $15 million. On March 10, 2023, SVB was closed by California and federal regulatory agencies. As a result of these actions, the FDIC established the Bridge Bank as successor to SVB. Based upon information available to us, we believe that the Bridge Bank has assumed all contracts of SVB in effect at the time of its failure (including our line of credit) and that the Bridge Bank is expected to continue to perform under those contracts. On April 20, 2020, the Company received a loan of $1,022,785 under the Small Business Administration (“SBA”) Paycheck Protection Program enabled by the CARES Act, to be used for employee compensation and facilities costs. The loan provided for a six-month deferral period during which no payments were due, although interest accrued during this period. The loan matured in April 2022 and provided for interest at the rate of 1% per annum. The loan was subject to forgiveness for principal that was used for the limited purposes that expressly qualify for forgiveness under SBA requirements. During 2020, $757,782 in eligible expenditures for payroll and other expenses described in the CARES Act were forgiven. In 2022, the loan was paid off. |
Product Warranties
Product Warranties | 12 Months Ended |
Dec. 31, 2022 | |
Product Warranties [Abstract] | |
PRODUCT WARRANTIES | Note 6 — Product Warranties Changes in product warranty liability were as follows for the years ended December 31, 2022 and 2021: (in thousands) Balance, December 31, 2020 $ 187 Warranties accrued during the period 530 Payments on warranty claims (209 ) Balance, December 31, 2021 $ 508 Warranties accrued during the period 722 Payments on warranty claims (827 ) Balance, December 31, 2022 $ 403 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Note 7 — Leases Operating Lease Agreements The Company leases its headquarters office from an unrelated third party. Previously, the lease was last renewed in 2016 and was to expire in September 2022. In April 2022, the Company renewed the headquarters office lease through September 2027. With the renewal, the present value of the right of use lease assets (“ROU”) and operating lease liability at the renewal of the lease was $1,156 thousand using an incremental borrowing rate of 5% as imputed interest. The amortization of the ROU was $194 thousand and $208 thousand for the years ended December 31, 2022 and 2021, respectively. The following table presents information about the amount, timing and uncertainty of cash flows arising from the Company’s operating leases as of December 31, 2022. (in thousands) Maturity of Operating Lease Liabilities Amount 2023 $ 221 2024 238 2025 245 2026 253 2027 194 Total undiscounted operating leases payments $ 1,151 Less: Imputed interest (131 ) Present Value of Operating Lease Liabilities $ 1,020 Other Information Weighted-average remaining lease term 4.75 years Weighted-average discount rate 5 % Cash paid for amounts included in the measurement of operating lease liabilities was $199 thousand and $331 thousand for the years ended December 31, 2022 and 2021, respectively, and is included in cash flows from operating activities in the accompanying consolidated statement of cash flows. Operating lease cost recognized as expense was $255 thousand and $335 thousand for the years ended December 31, 2022 and 2021, respectively. The financing component for operating lease obligations represents the effect of discounting the operating lease payments to their present value. The Company’s subsidiary previously leased a manufacturing facility under a 10-year lease expiring in July 2029. In accordance with the lease terms, the Company terminated the lease as of October 31, 2021, without penalty. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note 8 – Commitments and Contingencies Manufacturing Agreement In 2010, the Company entered into a three-year contract manufacturing agreement with an unrelated third party for the production and manufacture of the SRT-100 (and subsequently the SRT-100 Vision and the SRT-100+), in accordance with the Company’s product specifications. The agreement renews for successive one-year periods unless either party notifies the other party in writing, at least 60 days prior to the anniversary date of the agreement, that it will not renew the agreement. The Company or the manufacturer may terminate the agreement upon 90 days’ prior written notice. Purchases from this manufacturer totaled approximately $22.9 and $5.9 million for the years ended December 31, 2022 and 2021, respectively. As of December 31, 2022 and 2021, approximately $1.5 and $1.2 million, respectively, was due to this manufacturer, which is presented in accounts payable and accrued expenses in the accompanying consolidated balance sheets. Legal contingencies The Company is party to certain legal proceedings in the ordinary course of business. The Company assesses, in conjunction with its legal counsel, the need to record a liability for litigation and related contingencies. In 2015, the Company learned that the Department of Justice (the “Department”) had commenced an investigation of the billing to Medicare by a physician who had treated patients with the Company’s SRT-100. The Company has received two Civil Investigative Demands from the Department seeking documents and written responses in connection with that investigation. The Company has fully cooperated with the investigation. The Department has advised the Company that it was considering expanding the investigation to determine whether the Company had any involvement in the physician’s use of certain reimbursement codes. The Company disputes that it has engaged in any wrongdoing with respect to such reimbursement claims; among other things, the Company does not submit claims for reimbursement or provide coding or billing advice to physicians. To the Company’s knowledge, the Department has made no determination as to whether the Company engaged in any wrongdoing, or whether to pursue any legal action against the Company. Should the Department decide to pursue legal action, the Company believes it has strong and meritorious defenses and will vigorously defend itself. At this time, the Company is unable to estimate the cost associated with this matter. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Employee Benefit Plans [Abstract] | |
EMPLOYEE BENEFIT PLANS | Note 9 — Employee Benefit Plans The Company sponsors a 401(k) defined contribution retirement plan that allows eligible employees to contribute a portion of their compensation, as defined by the plan and subject to Internal Revenue Code limitations. The Company makes contributions to the plan which include matching a percentage of the employees’ contributions up to certain limits. Expenses related to this plan totaled approximately $95 thousand and $98 thousand for the years ended December 31, 2022 and 2021, respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity [Abstract] | |
Stockholders’ Equity | Note 10 — Stockholders’ Equity Preferred Stock The Company has authorized 5 million shares of preferred stock. No Common Stock During the year ended December 31, 2022, the Company issued 131,450 shares of common stock upon the exercise of stock options with an exercise price of $5.55. Treasury Stock Treasury stock includes 10,096 shares surrendered by employees for tax withholding on the vesting of restricted stock awards. In 2022, the Company repurchased 425,209 shares in open market transactions at prices per share ranging from $5.87 to $8.36. The total cost of the repurchased shares was approximately $3 million. Pending a decision on the ultimate disposition of these shares, they are recorded as treasury stock at cost. |
Equity-Based Compensation
Equity-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Stock-Based Compensation [Abstract] | |
EQUITY-BASED COMPENSATION | Note 11 – Equity-based Compensation 2016 and 2017 Equity Incentive Plans The Company has limited the aggregate number of shares of common stock to be awarded under the 2016 Equity Incentive Plan to 397,473 shares. The Company has limited the aggregate number of shares of common stock to be awarded under the 2017 Equity Incentive Plan to 500,000 shares. In addition, unless the Compensation Committee specifically determines otherwise, the maximum number of shares available under the 2016 and 2017 Plans and the awards granted under those plans will be subject to appropriate adjustment in the case of any stock dividends, stock splits, recapitalizations, reorganizations, mergers, consolidations, exchanges or other changes in capitalization affecting the Company’s common stock. The awards may be made in the form of restricted stock awards or stock options, among other things. On February 1, 2020, a total of 35,000 shares of restricted stock were issued to employees and were recorded at the fair value of $4.11 per share. The restricted shares vest 25% per year over a four-year time vesting period and are being recognized as expense on a straight-line basis over the vesting period of the awards. On July 21, 2021, a total of 130,000 shares of restricted stock were issued to employees and board members and were recorded at the fair value of $3.84 per share. The restricted shares vest 25% at grant date and 25% per year over a three-year vesting period and are being recognized as expense on a straight-line basis over the vesting period of the awards. On December 19, 2022, a total of 77,000 shares of restricted stock were issued to employees and were recorded at the fair value of $6.4 per share, which is the stock price on grant date. The restricted shares vest 25% per year over a four-year vesting period and are being recognized as expense on a straight-line basis over the vesting period of the awards. Restricted Stock Restricted stock activity for the years ended December 31, 2022 and 2021 is summarized below: Weighted- Average Grant Restricted Date Fair Outstanding at Stock Value December 31, 2020 37,500 $ 4.17 Granted 130,000 3.84 Vested (43,750 ) 3.96 Forfeited - - December 31, 2021 123,750 $ 3.90 Granted 77,000 6.40 Vested (41,250 ) 3.90 Forfeited - - December 31, 2022 159,500 $ 5.11 The Company recognizes forfeitures as they occur. The reduction of stock compensation expense related to the forfeitures was $0 for the years ended December 31, 2022 and 2021, respectively. Unrecognized stock compensation expense was approximately $709 thousand as of December 31, 2022, which will be recognized over a weighted-average period of 3.12 years. Stock Options Stock options expire 10 years after the grant date. Options that have been granted are exercisable and vest based on the terms of the related agreements. Weighted- Average Weighted- Remaining Average Contractual Number of Exercise Term Options Price (In Years) Outstanding - December 31, 2020 229,334 $ 5.55 7.07 Granted - - - Exercised - - - Expired - - - Outstanding - December 31, 2021 229,334 $ 5.55 6.07 Exercisable - December 31, 2021 229,334 $ 5.55 6.07 Granted - - - Exercised (131,450 ) 5.55 - Expired - - - Outstanding - December 31, 2022 97,884 $ 5.55 5.08 Exercisable – December 31, 2022 97,884 $ 5.55 5.08 The stock options outstanding had an intrinsic value of $183 thousand and $382 thousand as of December 31, 2022 and 2021, respectively. The total intrinsic value of options exercised during the years ended December 31, 2022 and 2021 was $561 thousand and $0, respectively. The tax benefit for the tax deductions from option exercise was $791 thousand and $0 for the year ended December 31, 2022 and 2021, respectively. Stock compensation expense related to restricted stock and stock options was $187 thousand and $415 thousand for the years ended December 31, 2022 and 2021, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes [Abstract] | |
Income Taxes | Note 12 — Income Taxes The income tax provision (benefit) consisted of the following: For The Years Ended December 31, (in thousands) 2022 2021 Current - Federal $ 2,977 $ - Current - State 2,482 - Deferred - Federal 2,218 (854 ) Deferred - State (369 ) (236 ) Deferred - International (55 ) (15 ) Total 7,253 (1,105 ) Change in valuation allowance (3,507 ) 1,105 Income tax provision $ 3,746 $ - F-17 For the years ended December 31, 2022 and December 31, 2021, the expected tax expense (benefit) based on the statutory rate is reconciled with the actual tax expense (benefit) as follows: For The Years Ended December 31, 2022 2021 U.S. federal statutory rate 21.0 % 21.0 % State taxes, net of federal benefit 7.3 % 4.9 % Permanent differences (0.4 %) 0.1 % Change in tax rates (1.1 %) 0.9 % Return-to-provision adjustments (0.9 %) (0.1 %) Change in valuation allowance (12.5 %) (26.8 %) Income tax provision 13.4 % 0.0 % As of December 31, 2022 and December 31, 2021, the Company’s net deferred tax asset consisted of the effects of temporary differences attributable to the following: 2022 2021 Deferred tax assets: Net operating losses $ 849 $ 2,336 Stock-based compensation 117 274 Depreciation and amortization 209 - Accrued expenses and reserves 404 240 Customer deposits 35 183 Tax credit 290 750 Charitable contributions - 26 Lease accounting 6 2 Other, net - 2 Gross deferred tax assets 1,910 3,813 Valuation allowance (185 ) (3,692 ) Total deferred tax assets 1,725 121 Deferred tax liabilities Prepaid expenses (12 ) (11 ) Depreciation and amortization - (110 ) Total deferred tax liabilities (12 ) (121 ) Net deferred tax assets $ 1,713 $ - The Company’s federal net operating loss (“NOL”) carryforward as of 2021 was fully utilized in 2022. The Company has state NOL in various jurisdictions, in aggregate $7.7 million as of December 31, 2022. A majority of the state NOL’s are attributed to the State of Illinois which begin to expire in 2029. Additionally, the Company also has state tax credit carryforwards of approximately $340 thousand as of December 31, 2022. These credit carryforwards do not expire. The Company’s Israel subsidiary has $766 thousand of NOL carryforwards which do not expire. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the future generation of taxable income during the periods in which those temporary differences become deductible. Management considers the ability to carryback taxable income, future reversals of existing taxable temporary differences, tax-planning strategies, and future taxable income exclusive of reversing temporary differences and carryforwards in making this assessment. The Company experienced a history of losses prior to 2021, becoming profitable in 2021 and remaining profitable in 2022. Management expects the Company to remain profitable and determined in 2022 that it is more-likely-than not that the federal and state deferred tax assets will be realized. A valuation allowance has been recorded for the deferred tax assets that are attributed to the Company’s Israel subsidiary. Consequently, the valuation allowance decreased by $3.5 million and increase by $1.1 million for the years ended December 31, 2022 and 2021, respectively. Management has evaluated and concluded that there were no material uncertain tax positions requiring recognition in the Company’s consolidated financial statements as of December 31, 2022 and 2021. The Company does not expect any significant changes in its unrecognized tax benefits within 12 months of the reporting date. The Company has U.S. federal and certain state tax returns subject to examination by tax authorities beginning with those filed for the year ended December 31, 2017. The Company’s policy is to classify assessments, if any, for tax related interest as interest expense and penalties as general and administrative expenses in the consolidated statements of income. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | Note 13 — Subsequent Events The Company has evaluated subsequent events and transactions that occurred after the balance sheet date up to the date that the financial statements were issued for potential recognition or disclosure. Other than the SVB matters discussed in Note 1, Organization And Summary Of Significant Accounting Policies Debt |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Description of the Business | Description of the Business Sensus Healthcare, Inc. (together, with its subsidiary, unless the context otherwise indicates, “Sensus” or the “Company”) is a manufacturer of radiation therapy devices and sells the devices to healthcare providers globally through its distribution and marketing network. The Company operates as one segment from its corporate headquarters located in Boca Raton, Florida. |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and include the accounts of the Company and its subsidiary. Accounts and transactions between consolidated entities have been eliminated. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, including disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting periods. Actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition The Company’s revenue derives from sales of the Company’s devices and services related to maintaining and repairing the devices as part of a service contract or on an ad-hoc basis without a service contract. The Company provides warranties, generally for one year, in conjunction with the sale of its products. These warranties entitle the customer to repair, replacement, or modification of the defective product, subject to the terms of the relevant warranty. The Company has determined that these warranties do not represent separate performance obligations, as the customer does not have the option to purchase the warranty separately and the warranty does not provide the customer with a service in addition to the assurance that the product complies with agreed-upon specifications. The Company records an estimate of future warranty claims at the time it recognizes revenue from the sale of the device based upon management’s estimate of the future claims rate. Revenue is recognized upon transfer of control of promised goods or services to customers when the product is shipped or the service is rendered, based on the amount the Company expects to receive in exchange for those goods or services. The Company enters into contracts that can include multiple services, which are accounted for separately if they are determined to be distinct. To determine the for in which a customer promises consideration in a form other than cash, the Company measures the estimated fair value of the noncash consideration at contract inception. If the Company cannot reasonably estimate the fair value of the noncash consideration, it measures the consideration indirectly by reference to the of the products promised to the customer or class of customer in exchange for the consideration. The revenues from service contracts are recognized over the service contract period on a straight-line basis. In the event that a customer does not sign a service contract, but requests maintenance or repair services after the warranty expires, the Company recognizes revenue when the service is rendered. The Company has determined that in practice no significant discount is given on the service contract when it is offered with the device purchase as compared to when it is sold on a stand-alone basis. The service level provided is identical whether the service contract is purchased on a stand-alone basis or together with the device. There is no termination provision in the service contract or any penalties in practice for cancellation of the service contract. The components of disaggregated revenue are as follows: For the Years Ended December 31, (in thousands) 2022 2021 Product Revenue - recognized at a point in time $ 40,007 $ 22,217 Service Revenue - recognized at a point in time 1,351 1,712 Service Revenue - recognized over time 3,174 3,113 Total Revenue $ 44,532 $ 27,042 The Company operates in a highly regulated environment, primarily in the U.S. dermatology market, in which state regulatory approval is sometimes required prior to the customer being able to use the product. In cases where such regulatory approval is pending, revenue is deferred until such time as regulatory approval is obtained. Deferred revenue activity for 2022 and 2021 is as follows: (in thousands) Product Service Total December 31, 2020 $ 23 $ 2,048 $ 2,071 Revenue recognized (23 ) (3,113 ) (3,136 ) Amounts invoiced 97 2,402 2,499 December 31, 2021 $ 97 $ 1,337 $ 1,434 Revenue recognized (1,015 ) (3,174 ) (4,189 ) Amounts invoiced 963 2,624 3,587 December 31, 2022 $ 45 $ 787 $ 832 The Company does not disclose information about remaining performance obligations of deposits for products that have original expected durations of one year or less. Estimated service revenue to be recognized in the future related to the performance obligations that are unsatisfied (or partially unsatisfied) as of December 31, 2022 is as follows: (in thousands) Year Service Revenue 2023 $ 648 2024 96 2025 23 2026 20 Total $ 787 The Company pays commissions for equipment sales. Because the recovery of commissions is expected to occur from product revenue within one year, the Company charges commissions to expense as incurred. Shipping and handling costs are expensed as incurred and are included in cost of sales. |
Concentration | Concentration Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash and cash equivalents and accounts receivable. On March 10, 2023, Silicon Valley Bank (“SVB”) was closed by California and federal regulatory agencies. As a result of these actions, the FDIC established Silicon Valley Bridge Bank (the “Bridge Bank”). Based upon information available to us, we believe that the Bridge Bank has assumed all contracts SVB entered into prior to its failure, that the Bridge Bank is expected to continue to perform under those contracts, and that all counterparties are consequently expected to perform under those contracts. One customer in the U.S. accounted for approximately 73% and 57% of revenue for the years ended December 31, 2022 and 2021, respectively, and 91% and 94% of the accounts receivable as of December 31, 2022 and 2021, respectively. |
Segment and Geographical Information | Segment and Geographical Information The following table illustrates total revenue for the years ended December 31, 2022 and 2021 by geographic region. For the Year Ended December 31, (in thousands) 2022 2021 United States $ 41,976 94 % $ 25,616 95 % China 2,452 6 % 1,410 5 % Other 104 0 % 16 0 % Total Revenue $ 44,532 100 % $ 27,042 100 % |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Carrying amounts of cash equivalents, accounts receivable, accounts payable and the revolving credit facility approximate fair value due to their relative short maturities. |
Fair Value Measurements | Fair Value Measurements The Company uses a fair value hierarchy that prioritizes inputs to valuation approaches used to measure fair value. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. Assets and liabilities measured and reported at fair value are classified and disclosed in one of the following categories: Level 1 Inputs: Quoted prices (unadjusted) in active markets for identical assets or liabilities at the reporting date. ● Level 1 assets may include listed mutual funds, ETFs and listed equities Level 2 Inputs: Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities that are not active; quotes from pricing services or brokers for which the Company can determine that orderly transactions took place at the quoted price or that the inputs used to arrive at the price are observable; and inputs other than quoted prices that are observable, such as models or other valuation methodologies. ● Level 2 assets may include debt securities and foreign currency exchange contracts that have inputs to the valuations that generally can be corroborated by observable market data. Level 3 Inputs: Unobservable inputs for the valuation of the asset or liability, which may include nonbinding broker quotes. ● Level 3 assets include investments for which there is little, if any, market activity. These inputs require significant management judgment or estimation. Significance of Inputs: The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument. |
Foreign Currency | Foreign Currency The Company’s foreign operation functional currency is the U.S. dollar. The Company considers its Israel subsidiary an extension of the parent company operations in the United States. The cash flow in the foreign operation depends primarily on the funding by the parent company. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents primarily consists of cash, money market funds and short-term, highly liquid investments with original maturities of three months or less. For purposes of the statements of cash flows, the Company considers all highly liquid financial instruments with a maturity of three months or less when purchased to be a cash equivalent. |
Accounts Receivable | Accounts Receivable The Company does business and extends credit based on an evaluation of each customer’s financial condition, generally without requiring collateral. Exposure to losses on receivables is expected to vary by customer due to the financial condition of each customer. The Company monitors exposure to credit losses and maintains allowances for anticipated losses considered necessary under the circumstances. The allowance for doubtful accounts was approximately $107 thousand and $69 thousand as of December 31, 2022 and 2021, respectively. Bad debt expense for the years ended December 31, 2022 and 2021 was approximately $145 thousand and $78 thousand, respectively. |
Inventories | Inventories Inventories consist of finished product and components and are stated at the lower of cost and net realizable value, determined using the first-in-first-out method. |
Prepaid and Other Current Assets | Prepaid and Other Current Assets Prepaid and other current assets consists of the following: For the Years Ended December 31, (in thousands) 2022 2021 Deposits on inventories $ 6,337 $ 2,529 Prepaid insurance 46 40 Other current assets 538 268 Total $ 6,921 $ 2,837 |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation on property and equipment is calculated on the straight-line basis over the estimated useful life of each asset. Maintenance and repairs are expensed as incurred; expenditures that enhance the value of property or extend their useful lives are capitalized. When assets are sold or returned, the cost and related accumulated depreciation are removed from the accounts and the resulting gain or loss is included in income. Inventory units designated for customer demonstrations, as part of the sales process, are reclassified to property and equipment and the depreciation is recorded to selling and marketing expense. Property and equipment for demonstrations and other programs that were reclassified to or from inventory was approximately $48 thousand and $66 thousand for the years ended December 31, 2022 and 2021, respectively. |
Intangible Assets | Intangible Assets Intangible assets are comprised of the Company’s patent rights and finite-lived intangible assets acquired in acquisitions. The carrying value of finite-lived assets and their remaining useful lives are reviewed at least annually to determine if triggering events have occurred that may indicate a potential impairment or revision to the amortization period. For finite-lived intangible assets, if potential impairment circumstances are considered to exist, the Company will perform a recoverability test using an undiscounted cash flow analysis. Actual results could differ from these cash flow estimates, which could materially impact the impairment conclusion. If the carrying value of the asset is determined not to be recoverable based on the undiscounted cash flow test, the difference between the carrying value of the asset and its current fair value would be recognized as an expense in the period in which the impairment occurs. Impairment charges of $0 and $88 thousand were recorded for intangible assets for the years ended December 31, 2022 and 2021, respectively. |
Research and Development | Research and Development Research and development costs related to products under development by the Company and quality and regulatory costs and are expensed as incurred. |
Earnings Per Share | Earnings Per Share Basic net income per share is calculated by dividing the net income by the weighted-average number of common shares outstanding for the period using the treasury stock method for options, restricted stock and warrants. Diluted net income per share is computed by giving effect to all potential dilutive common share equivalents outstanding for the period. The factors used in the earnings per share computation are as follows: For the Years Ended December 31, (in thousands) 2022 2021 Basic Net income $ 24,244 $ 4,119 Weighted average common shares outstanding 16,481 16,476 Basic earnings per share $ 1.47 $ 0.25 Diluted Net income $ 24,244 $ 4,119 Weighted average common shares outstanding 16,481 16,476 Dilutive effects of: Assumed exercise of stock options 55 - Restricted stock awards 82 27 Dilutive shares 16,618 16,503 Diluted earnings per share $ 1.46 $ 0.25 |
Equity-Based Compensation | Equity-Based Compensation Pursuant to relevant accounting guidance related to accounting for equity-based compensation, the Company is required to recognize all share-based payments to non-employees and employees in the financial statements based on grant-date fair values. The Company has accounted for issuances of shares, options, and warrants in accordance with the guidance, which requires the recognition of expense, based on grant-date fair values, over the service period, which is generally the period over which the shares, options and warrants vest. |
Advertising Costs | Advertising Costs Advertising and promotion costs are charged to expense as incurred. Advertising and promotion costs included in selling and marketing expense in the accompanying statements of income amounted to approximately $871 thousand and $460 thousand for the years ended December 31, 2022 and 2021, respectively. |
Leases | Leases The Company evaluates arrangements at inception to determine if an arrangement is or contains a lease. Operating lease assets represent the Company’s right to control an underlying asset for the lease term, and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Control of an underlying asset is conveyed to the Company if the Company obtains the rights to direct the use of and to obtain substantially all of the economic benefits from using the underlying asset. Operating lease assets and liabilities are recognized at the commencement date of the lease based upon the present value of lease payments over the lease term. When determining the lease term, the Company includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company uses an incremental borrowing rate that the Company would expect to incur for a fully collateralized loan over a similar term under similar economic conditions to determine the present value of the lease payments. The Company has lease agreements which include lease and non-lease components, which the Company has elected to account for as a single lease component for all classes of underlying assets. The lease payments used to determine the Company’s operating lease assets may include lease incentives, and stated rent increases are recognized in the Company’s operating lease assets in the Company’s consolidated balance sheets. Operating lease assets are amortized to rent expense over the lease term and included in operating expenses in the consolidated statements of income. |
Income Taxes | Income Taxes The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on differences between the financial statement carrying amounts and the tax bases of the assets and liabilities using the enacted tax rates in effect in the years in which the differences are expected to reverse. A valuation allowance against deferred tax assets is recorded if, based on the weight of the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. Uncertain tax positions are recognized in the financial statements only if that position is more likely than not to be sustained upon examination by taxing authorities, based on the technical merits of the position. The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense. |
Recent Accounting Standard | Recent Accounting Standard In March 2020, the Financial Accounting Standard Board (FASB) issued ASU 2020-4, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting Deferral of the Sunset Date of Topic 848 |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of disaggregated revenue | For the Years Ended December 31, (in thousands) 2022 2021 Product Revenue - recognized at a point in time $ 40,007 $ 22,217 Service Revenue - recognized at a point in time 1,351 1,712 Service Revenue - recognized over time 3,174 3,113 Total Revenue $ 44,532 $ 27,042 |
Schedule of deferred revenue activity | (in thousands) Product Service Total December 31, 2020 $ 23 $ 2,048 $ 2,071 Revenue recognized (23 ) (3,113 ) (3,136 ) Amounts invoiced 97 2,402 2,499 December 31, 2021 $ 97 $ 1,337 $ 1,434 Revenue recognized (1,015 ) (3,174 ) (4,189 ) Amounts invoiced 963 2,624 3,587 December 31, 2022 $ 45 $ 787 $ 832 |
Schedule of estimated service revenue to be recognized | Year Service Revenue 2023 $ 648 2024 96 2025 23 2026 20 Total $ 787 |
Schedule of illustrates total revenue | For the Year Ended December 31, (in thousands) 2022 2021 United States $ 41,976 94 % $ 25,616 95 % China 2,452 6 % 1,410 5 % Other 104 0 % 16 0 % Total Revenue $ 44,532 100 % $ 27,042 100 % |
Schedule of prepaid and other current assets | For the Years Ended December 31, (in thousands) 2022 2021 Deposits on inventories $ 6,337 $ 2,529 Prepaid insurance 46 40 Other current assets 538 268 Total $ 6,921 $ 2,837 |
Schedule of earnings per share computation | For the Years Ended December 31, (in thousands) 2022 2021 Basic Net income $ 24,244 $ 4,119 Weighted average common shares outstanding 16,481 16,476 Basic earnings per share $ 1.47 $ 0.25 Diluted Net income $ 24,244 $ 4,119 Weighted average common shares outstanding 16,481 16,476 Dilutive effects of: Assumed exercise of stock options 55 - Restricted stock awards 82 27 Dilutive shares 16,618 16,503 Diluted earnings per share $ 1.46 $ 0.25 |
Disposition (Tables)
Disposition (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disposition [Abstract] | |
Schedule of the assets and liabilities sold | ( in thousands Book Value Cash $ 15,000 Inventory (1,401 ) Property and equipment (157 ) Other liabilities (663 ) Gain on asset sale $ 12,779 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property and Equipment [Abstract] | |
Schedule of property and equipment | As of As of Estimated (in thousands) 2022 2021 Useful Lives Operations equipment $ 1,222 $ 1,760 3 years Tradeshow and demo equipment 990 927 3 years Computer equipment 162 129 3 years Subtotal 2,374 2,816 Less accumulated depreciation (2,131 ) (2,211 ) Property and Equipment, Net $ 243 $ 605 |
Intangibles (Tables)
Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Intangibles [Abstract] | |
Schedule of intangible assets | Patent Customer Trade (in thousands) Rights Relationships Names Total December 31, 2020 $ 241 $ 84 $ 13 $ 338 Impaired assets - (81 ) (7 ) (88 ) Amortization expense (96 ) (2 ) (6 ) (104 ) December 31, 2021 $ 145 $ 1 $ - $ 146 Amortization expense (96 ) - - (96 ) December 31, 2022 $ 49 $ 1 $ - $ 50 |
Schedule of estimated amortization expense for the finite-lived intangible assets | For the Year Ending December 31, (in thousands) 2023 $ 49 2024 - 2025 - 2026 1 Total $ 50 |
Product Warranties (Tables)
Product Warranties (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Product Warranties [Abstract] | |
Schedule of changes in product warranty liability | (in thousands) Balance, December 31, 2020 $ 187 Warranties accrued during the period 530 Payments on warranty claims (209 ) Balance, December 31, 2021 $ 508 Warranties accrued during the period 722 Payments on warranty claims (827 ) Balance, December 31, 2022 $ 403 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of operating leases | Maturity of Operating Lease Liabilities Amount 2023 $ 221 2024 238 2025 245 2026 253 2027 194 Total undiscounted operating leases payments $ 1,151 Less: Imputed interest (131 ) Present Value of Operating Lease Liabilities $ 1,020 Other Information Weighted-average remaining lease term 4.75 years Weighted-average discount rate 5 % |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of restricted stock activity | Weighted- Average Grant Restricted Date Fair Outstanding at Stock Value December 31, 2020 37,500 $ 4.17 Granted 130,000 3.84 Vested (43,750 ) 3.96 Forfeited - - December 31, 2021 123,750 $ 3.90 Granted 77,000 6.40 Vested (41,250 ) 3.90 Forfeited - - December 31, 2022 159,500 $ 5.11 |
Schedule of stock option activity | Weighted- Average Weighted- Remaining Average Contractual Number of Exercise Term Options Price (In Years) Outstanding - December 31, 2020 229,334 $ 5.55 7.07 Granted - - - Exercised - - - Expired - - - Outstanding - December 31, 2021 229,334 $ 5.55 6.07 Exercisable - December 31, 2021 229,334 $ 5.55 6.07 Granted - - - Exercised (131,450 ) 5.55 - Expired - - - Outstanding - December 31, 2022 97,884 $ 5.55 5.08 Exercisable – December 31, 2022 97,884 $ 5.55 5.08 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes [Abstract] | |
Schedule of income tax provision (benefit) | For The Years Ended December 31, (in thousands) 2022 2021 Current - Federal $ 2,977 $ - Current - State 2,482 - Deferred - Federal 2,218 (854 ) Deferred - State (369 ) (236 ) Deferred - International (55 ) (15 ) Total 7,253 (1,105 ) Change in valuation allowance (3,507 ) 1,105 Income tax provision $ 3,746 $ - |
Schedule of expected tax expense (benefit) based on statutory rate is reconciled with actual tax expense (benefit) | For The Years Ended December 31, 2022 2021 U.S. federal statutory rate 21.0 % 21.0 % State taxes, net of federal benefit 7.3 % 4.9 % Permanent differences (0.4 %) 0.1 % Change in tax rates (1.1 %) 0.9 % Return-to-provision adjustments (0.9 %) (0.1 %) Change in valuation allowance (12.5 %) (26.8 %) Income tax provision 13.4 % 0.0 % |
Schedule of company's net deferred tax asset | 2022 2021 Deferred tax assets: Net operating losses $ 849 $ 2,336 Stock-based compensation 117 274 Depreciation and amortization 209 - Accrued expenses and reserves 404 240 Customer deposits 35 183 Tax credit 290 750 Charitable contributions - 26 Lease accounting 6 2 Other, net - 2 Gross deferred tax assets 1,910 3,813 Valuation allowance (185 ) (3,692 ) Total deferred tax assets 1,725 121 Deferred tax liabilities Prepaid expenses (12 ) (11 ) Depreciation and amortization - (110 ) Total deferred tax liabilities (12 ) (121 ) Net deferred tax assets $ 1,713 $ - |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies (Details) | 12 Months Ended | |
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Accounting Policies [Abstract] | ||
Number of segments | 1 | |
Revenue year | 1 year | |
Number of customer | 1 | |
Revenue percentage | 73% | 57% |
Accounts receivable percentage | 91% | 94% |
Allowance for doubtful accounts | $ 107,000 | $ 69,000 |
Bad debt expense | 145,000 | 78,000 |
Inventory | 48,000 | 66,000 |
Impairment charges | 0 | 88,000 |
Selling and marketing expense | $ 871 | $ 460,000 |
Organization and Summary of S_4
Organization and Summary of Significant Accounting Policies (Details) - Schedule of disaggregated revenue - Revenue [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Organization and Summary of Significant Accounting Policies (Details) - Schedule of disaggregated revenue [Line Items] | ||
Total Revenue | $ 44,532 | $ 27,042 |
Product Revenue - recognized at a point in time [Member] | ||
Organization and Summary of Significant Accounting Policies (Details) - Schedule of disaggregated revenue [Line Items] | ||
Total Revenue | 40,007 | 22,217 |
Service Revenue - recognized at a point in time [Member] | ||
Organization and Summary of Significant Accounting Policies (Details) - Schedule of disaggregated revenue [Line Items] | ||
Total Revenue | 1,351 | 1,712 |
Service Revenue - recognized over time [Member] | ||
Organization and Summary of Significant Accounting Policies (Details) - Schedule of disaggregated revenue [Line Items] | ||
Total Revenue | $ 3,174 | $ 3,113 |
Organization and Summary of S_5
Organization and Summary of Significant Accounting Policies (Details) - Schedule of deferred revenue activity - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Organization and Summary of Significant Accounting Policies (Details) - Schedule of deferred revenue activity [Line Items] | ||
Balance, beginning of period | $ 1,434 | $ 2,071 |
Revenue recognized | (4,189) | (3,136) |
Amounts invoiced | 3,587 | 2,499 |
Balance, end of period | 832 | 1,434 |
Product [Member] | ||
Organization and Summary of Significant Accounting Policies (Details) - Schedule of deferred revenue activity [Line Items] | ||
Balance, beginning of period | 97 | 23 |
Revenue recognized | (1,015) | (23) |
Amounts invoiced | 963 | 97 |
Balance, end of period | 45 | 97 |
Service [Member] | ||
Organization and Summary of Significant Accounting Policies (Details) - Schedule of deferred revenue activity [Line Items] | ||
Balance, beginning of period | 1,337 | 2,048 |
Revenue recognized | (3,174) | (3,113) |
Amounts invoiced | 2,624 | 2,402 |
Balance, end of period | $ 787 | $ 1,337 |
Organization and Summary of S_6
Organization and Summary of Significant Accounting Policies (Details) - Schedule of estimated service revenue to be recognized $ in Thousands | Dec. 31, 2022 USD ($) |
Schedule of Estimated Service Revenue to be Recognized [Abstract] | |
2023 | $ 648 |
2024 | 96 |
2025 | 23 |
2026 | 20 |
Total | $ 787 |
Organization and Summary of S_7
Organization and Summary of Significant Accounting Policies (Details) - Schedule of illustrates total revenue - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Total revenue | $ 44,532 | $ 27,042 |
Total revenue, percentage | 100% | 100% |
United States [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | $ 41,976 | $ 25,616 |
Total revenue, percentage | 94% | 95% |
China [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | $ 2,452 | $ 1,410 |
Total revenue, percentage | 6% | 5% |
Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | $ 104 | $ 16 |
Total revenue, percentage | 0% | 0% |
Organization and Summary of S_8
Organization and Summary of Significant Accounting Policies (Details) - Schedule of prepaid and other current assets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Prepaid and Other Current Assets [Abstract] | ||
Deposits on inventories | $ 6,337 | $ 2,529 |
Prepaid insurance | 46 | 40 |
Other current assets | 538 | 268 |
Total | $ 6,921 | $ 2,837 |
Organization and Summary of S_9
Organization and Summary of Significant Accounting Policies (Details) - Schedule of earnings per share computation - Earnings Per Share [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Basic | ||
Net income (in Dollars) | $ 24,244 | $ 4,119 |
Weighted average common shares outstanding | 16,481 | 16,476 |
Basic earnings per share (in Dollars per share) | $ 1.47 | $ 0.25 |
Diluted | ||
Net income (in Dollars) | $ 24,244 | $ 4,119 |
Weighted average common shares outstanding | 16,481 | 16,476 |
Dilutive effects of: | ||
Assumed exercise of stock options | 55 | |
Restricted stock awards | 82 | 27 |
Dilutive shares | 16,618 | 16,503 |
Diluted earnings per share (in Dollars per share) | $ 1.46 | $ 0.25 |
Disposition (Details)
Disposition (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2022 | Feb. 25, 2022 | Apr. 30, 2021 | |
Acquisitions [Abstract] | ||||
Sold certain property and equipment | $ 605 | $ 243 | $ 257 | |
Impairment charges on intangible assets | 88 | |||
Loss on sale of property and equipment | $ 47 | |||
Assets sold in cash | $ 15,000 |
Disposition (Details) - Schedul
Disposition (Details) - Schedule of the assets and liabilities sold $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Schedule of the Assets and Liabilities Sold [Abstract] | |
Cash | $ 15,000 |
Inventory | (1,401) |
Property and equipment | (157) |
Other liabilities | (663) |
Gain on asset sale | $ 12,779 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property and Equipment [Abstract] | ||
Depreciation expense | $ 219 | $ 509 |
Accumulated depreciation | $ 435 | $ 88 |
Property and Equipment (Detai_2
Property and Equipment (Details) - Schedule of property and equipment - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Apr. 30, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Subtotal | $ 2,374 | $ 2,816 | |
Less accumulated depreciation | (2,131) | (2,211) | |
Property and Equipment, Net | 243 | 605 | $ 257 |
Operations equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Subtotal | $ 1,222 | 1,760 | |
Property, plant and equipment, estimated useful Life | 3 years | ||
Tradeshow and demo equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Subtotal | $ 990 | 927 | |
Property, plant and equipment, estimated useful Life | 3 years | ||
Computer equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Subtotal | $ 162 | $ 129 | |
Property, plant and equipment, estimated useful Life | 3 years |
Intangibles (Details)
Intangibles (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Intangibles [Abstract] | ||
Accumulated amortization | $ 96 | $ 104 |
Weighted-average amortization for intangible assets | 8 months 12 days |
Intangibles (Details) - Schedul
Intangibles (Details) - Schedule of intangible assets - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Beginning balance | $ 146 | $ 338 |
Impaired assets | (88) | |
Amortization expense | (96) | (104) |
Ending Balance | 50 | 146 |
Patent Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Beginning balance | 145 | 241 |
Impaired assets | ||
Amortization expense | (96) | (96) |
Ending Balance | 49 | 145 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Beginning balance | 1 | 84 |
Impaired assets | (81) | |
Amortization expense | (2) | |
Ending Balance | 1 | 1 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Beginning balance | 13 | |
Impaired assets | (7) | |
Amortization expense | (6) | |
Ending Balance |
Intangibles (Details) - Sched_2
Intangibles (Details) - Schedule of estimated amortization expense for the finite-lived intangible assets $ in Thousands | Dec. 31, 2022 USD ($) |
Schedule of Estimated Amortization Expense for the Finite Lived Intangible Assets [Abstract] | |
2023 | $ 49 |
2024 | |
2025 | |
2026 | 1 |
Total | $ 50 |
Debt (Details)
Debt (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Apr. 20, 2022 | Apr. 20, 2020 | Dec. 31, 2022 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | ||||
Revolving credit facility, description | The Company has had a revolving credit facility with SVB that, as of December 31, 2021, provided for maximum borrowings equal to the lesser of (a) the $10 million commitment amount or (b) the borrowing base plus a $3 million non-formula sublimit. In April 2022, the term was extended to April 1, 2024, and the maximum borrowings were increased to the lesser of (a) the $15 million commitment amount or (b) the borrowing base plus a $7.5 million non-formula sublimit. | |||
Borrowing | $ 15,000,000 | |||
Interest on borrowing, description | Interest on any borrowings, at Prime plus 0.75% (8.25% at December 31, 2022) and Prime plus 1.50% on non-formula borrowings (9% at December 31, 2022) is payable monthly, and the outstanding principal and interest are due on the maturity date. | |||
Commitment fees percentage | 0.25% | |||
Company received a loan | $ 1,022,785 | |||
Maturity, description | The loan matured in April 2022 and provided for interest at the rate of 1% per annum. | |||
Payroll and other expenses | $ 757,782 |
Product Warranties (Details) -
Product Warranties (Details) - Schedule of changes in product warranty liability - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Changes in Product Warranty Liability [Abstract] | ||
Balance, beginning of period | $ 508 | $ 187 |
Warranties accrued during the period | 722 | 530 |
Payments on warranty claims | (827) | (209) |
Balance, end of period | $ 403 | $ 508 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | ||
Operating lease liability at the renewal | $ 1,156 | |
Borrowing rate interest | 5% | |
Amortization | $ 194 | $ 208 |
Operating lease liabilities | 199 | 331 |
Operating lease cost | $ 255 | $ 335 |
Lease expiring year | 10 years |
Leases (Details) - Schedule of
Leases (Details) - Schedule of operating leases $ in Thousands | Dec. 31, 2022 USD ($) |
Schedule of Operating Leases [Abstract] | |
2023 | $ 221 |
2024 | 238 |
2025 | 245 |
2026 | 253 |
2027 | 194 |
Total undiscounted operating leases payments | 1,151 |
Less: Imputed interest | (131) |
Present Value of Operating Lease Liabilities | $ 1,020 |
Other Information | |
Weighted-average remaining lease term | 4 years 9 months |
Weighted-average discount rate | 5% |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Purchases from this manufacturer totaled | $ 22.9 | $ 5.9 |
Accounts payable and accrued expenses | $ 1.5 | $ 1.2 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | ||
Expenses related plan totaled | $ 95 | $ 98 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Stockholders' Equity (Details) [Line Items] | ||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares outstanding | ||
Preferred stock, shares issued | ||
Common stock, share issued | 131,450 | |
Exercise price (in Dollars per share) | $ 5.55 | |
Treasury stock, shares | 10,096 | |
Repurchased shares | 425,209 | |
Total cost of the repurchased shares (in Dollars) | $ 3 | |
Minimum [Member] | ||
Stockholders' Equity (Details) [Line Items] | ||
Price per share (in Dollars per share) | $ 5.87 | |
Maximum [Member] | ||
Stockholders' Equity (Details) [Line Items] | ||
Price per share (in Dollars per share) | $ 8.36 |
Equity-Based Compensation (Deta
Equity-Based Compensation (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Feb. 01, 2020 | Dec. 19, 2022 | Jul. 21, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Equity-Based Compensation (Details) [Line Items] | |||||
Shares available, granted (in Shares) | 58,973 | ||||
Restricted stock issued (in Shares) | 35,000 | 77,000 | 130,000 | ||
Fair value of per share (in Dollars per share) | $ 4.11 | $ 6.4 | $ 3.84 | ||
Restricted vest percentage | 25% | 25% | 25% | ||
Restricted grant percentage | 25% | ||||
Reduction of stock compensation expense value forfeited | $ 0 | $ 0 | |||
Unrecognized stock compensation expense | $ 709,000 | ||||
Recognized over weighted average | 3 years 1 month 13 days | ||||
Stock options expire grant date | 10 years | ||||
Stock options intrinsic value | $ 183,000 | 382,000 | |||
Intrinsic value of options exercised | 561,000 | 0 | |||
Tax benefit | 791,000 | 0 | |||
Restricted stock and option expense | $ 187,000 | $ 415,000 | |||
2016 Equity Incentive Plan [Member] | |||||
Equity-Based Compensation (Details) [Line Items] | |||||
Equity incentive plan (in Shares) | 397,473 | ||||
2017 Equity Incentive Plan [Member] | |||||
Equity-Based Compensation (Details) [Line Items] | |||||
Equity incentive plan (in Shares) | 500,000 |
Equity-Based Compensation (De_2
Equity-Based Compensation (Details) - Schedule of restricted stock activity - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of restricted stock activity [Abstract] | ||
Restricted Stock, balance at beginning | 123,750 | 37,500 |
Weighted-Average Grant Date Fair Value, balance at beginning | $ 3.9 | $ 4.17 |
Restricted Stock, balance at ending | 159,500 | 123,750 |
Weighted-Average Grant Date Fair Value, balance at ending | $ 5.11 | $ 3.9 |
Restricted Stock, Granted | 77,000 | 130,000 |
Weighted-Average Grant Date Fair Value, Granted | $ 6.4 | $ 3.84 |
Restricted Stock, Vested | (41,250) | (43,750) |
Weighted-Average Grant Date Fair Value, Vested | $ 3.9 | $ 3.96 |
Restricted Stock, Forfeited | shares | ||
Weighted-Average Grant Date Fair Value, Forfeited |
Equity-Based Compensation (De_3
Equity-Based Compensation (Details) - Schedule of stock option activity - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of stock option activity [Abstract] | ||
Number of Options, Outstanding at beginning | 229,334 | 229,334 |
Weighted- Average Exercise Price, Outstanding at beginning | $ 5.55 | $ 5.55 |
Weighted- Average Remaining Contractual Term (In Years), Outstanding at beginning | 6 years 25 days | 7 years 25 days |
Number of Options, Outstanding at ending | 97,884 | 229,334 |
Weighted- Average Exercise Price, Outstanding at ending | $ 5.55 | $ 5.55 |
Weighted- Average Remaining Contractual Term (In Years), Outstanding at ending | 5 years 29 days | 6 years 25 days |
Number of Options, Exercisable at ending | 97,884 | 229,334 |
Weighted- Average Exercise Price, Exercisable at ending | $ 5.55 | $ 5.55 |
Weighted- Average Remaining Contractual Term (In Years), Exercisable at ending | 5 years 29 days | 6 years 25 days |
Number of Options, Granted | ||
Weighted- Average Exercise Price, Granted | ||
Weighted- Average Remaining Contractual Term (In Years), Granted | ||
Number of Options, Exercised | (131,450) | |
Weighted- Average Exercise Price, Exercised | $ 5.55 | |
Weighted- Average Remaining Contractual Term (In Years), Exercised | ||
Number of Options, Expired | ||
Weighted- Average Exercise Price, Expired | ||
Weighted- Average Remaining Contractual Term (In Years), Expired |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Aggregate amount | $ 7,700 | |
State net operating loss carryforwards | 340 | |
NOL carryforwards | 766 | |
Valuation allowance (increase) decreased | $ 3,500 | $ 1,100 |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of income tax provision (benefit) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of income tax provision (benefit) [Abstract] | ||
Current - Federal | $ 2,977 | |
Current - State | 2,482 | |
Deferred - Federal | 2,218 | (854) |
Deferred - State | (369) | (236) |
Deferred - International | (55) | (15) |
Total | 7,253 | (1,105) |
Change in valuation allowance | (3,507) | 1,105 |
Income tax provision | $ 3,746 |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of expected tax expense (benefit) based on statutory rate is reconciled with actual tax expense (benefit) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of expected tax expense (benefit) based on statutory rate is reconciled with actual tax expense (benefit) [Abstract] | ||
U.S. federal statutory rate | 21% | 21% |
State taxes, net of federal benefit | 7.30% | 4.90% |
Permanent differences | (0.40%) | 0.10% |
Change in tax rates | (1.10%) | 0.90% |
Return-to-provision adjustments | (0.90%) | (0.10%) |
Change in valuation allowance | (12.50%) | (26.80%) |
Income tax provision | 13.40% | 0% |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of company's net deferred tax asset - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Net operating losses | $ 849 | $ 2,336 |
Stock-based compensation | 117 | 274 |
Depreciation and amortization | 209 | |
Accrued expenses and reserves | 404 | 240 |
Customer deposits | 35 | 183 |
Tax credit | 290 | 750 |
Charitable contributions | 26 | |
Lease accounting | 6 | 2 |
Other, net | 2 | |
Gross deferred tax assets | 1,910 | 3,813 |
Valuation allowance | (185) | (3,692) |
Total deferred tax assets | 1,725 | 121 |
Deferred tax liabilities | ||
Prepaid expenses | (12) | (11) |
Depreciation and amortization | (110) | |
Total deferred tax liabilities | (12) | (121) |
Net deferred tax assets | $ 1,713 |