Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 07, 2024 | Jun. 30, 2023 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Interactive Data Current | Yes | ||
ICFR Auditor Attestation Flag | false | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Documents Incorporated by Reference [Text Block] | Portions of our Proxy Statement for the Annual Meeting of Stockholders to be held on May 31, 2024, are incorporated by reference in Part III. | ||
Entity Information [Line Items] | |||
Entity Registrant Name | Sensus Healthcare, Inc. | ||
Entity Central Index Key | 0001494891 | ||
Entity File Number | 001-37714 | ||
Entity Tax Identification Number | 27-1647271 | ||
Entity Incorporation, State or Country Code | DE | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Public Float | $ 45,722,493 | ||
Entity Contact Personnel [Line Items] | |||
Entity Address, Address Line One | 851 Broken Sound Pkwy | ||
Entity Address, Address Line Two | NW #215 | ||
Entity Address, City or Town | Boca Raton | ||
Entity Address, State or Province | FL | ||
Entity Address, Postal Zip Code | 33487 | ||
Entity Phone Fax Numbers [Line Items] | |||
City Area Code | (561) | ||
Local Phone Number | 922-5808 | ||
Entity Listings [Line Items] | |||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | SRTS | ||
Security Exchange Name | NASDAQ | ||
Entity Common Stock, Shares Outstanding | 16,394,171 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Auditor [Table] | |
Auditor Name | Marcum LLP |
Auditor Firm ID | 688 |
Auditor Location | Tampa, Florida |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 23,148 | $ 25,520 |
Accounts receivable, net | 10,645 | 17,299 |
Inventories | 11,861 | 3,501 |
Prepaid inventory | 2,986 | 6,261 |
Other current assets | 888 | 660 |
Total current assets | 49,528 | 53,241 |
Property and equipment, net | 464 | 243 |
Deferred tax asset | 2,140 | 1,713 |
Operating lease right-of-use asset, net | 774 | 996 |
Other noncurrent assets | 804 | 542 |
Total assets | 53,710 | 56,735 |
Current liabilities | ||
Accounts payable and accrued expenses | 2,793 | 5,521 |
Product warranties | 538 | 403 |
Operating lease liabilities, current portion | 187 | 190 |
Income tax payable | 37 | 890 |
Deferred revenue, current portion | 657 | 693 |
Total current liabilities | 4,212 | 7,697 |
Operating lease liabilities | 596 | 830 |
Deferred revenue, net of current portion | 60 | 139 |
Total liabilities | 4,868 | 8,666 |
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; 16,907,095 issued and 16,374,171 outstanding at December 31, 2023; 16,902,761 issued and 16,390,419 outstanding at December 31, 2022 | 169 | 169 |
Additional paid-in capital | 45,405 | 45,031 |
Treasury stock, 532,924 and 512,342 shares at cost, at December 31, 2023 and December 31, 2022, respectively | (3,519) | (3,433) |
Retained earnings | 6,787 | 6,302 |
Total stockholders’ equity | 48,842 | 48,069 |
Total liabilities and stockholders’ equity | $ 53,710 | $ 56,735 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
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 | 16,907,095 | 16,902,761 |
Common stock shares outstanding | 16,374,171 | 16,390,419 |
Treasury stock, shares | 532,924 | 512,342 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Statement [Abstract] | ||
Revenues | $ 24,405 | $ 44,532 |
Cost of sales | 10,345 | 14,904 |
Gross profit | 14,060 | 29,628 |
Operating expenses | ||
Selling and marketing | 5,608 | 6,329 |
General and administrative | 5,156 | 5,008 |
Research and development | 3,678 | 3,460 |
Total operating expenses | 14,442 | 14,797 |
Income (loss) from operations | (382) | 14,831 |
Other income: | ||
Gain on sale of assets | 42 | 12,779 |
Interest income, net | 992 | 380 |
Other income, net | 1,034 | 13,159 |
Income before income tax | 652 | 27,990 |
Provision for income taxes | 167 | 3,746 |
Net income | $ 485 | $ 24,244 |
Net income per share – basic (in Dollars per share) | $ 0.03 | $ 1.47 |
diluted (in Dollars per share) | $ 0.03 | $ 1.46 |
Weighted average number of shares used in computing net income per share – basic (in Shares) | 16,259,254 | 16,480,991 |
diluted (in Shares) | 16,266,139 | 16,618,214 |
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, 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) | |||
Stock-based compensation | 359 | 359 | |||
Stock-based compensation (in Shares) | 10,000 | ||||
Forfeiture of restricted stock units | (31) | (31) | |||
Forfeiture of restricted stock units (in Shares) | (14,000) | ||||
Exercise of stock options | 46 | 46 | |||
Exercise of stock options (in Shares) | 8,334 | ||||
Stock repurchase | $ (27) | $ (27) | |||
Stock repurchase (in Shares) | (9,427) | 9,427 | |||
Surrender of shares for tax withholding on stock-based compensation | $ (59) | $ (59) | |||
Surrender of shares for tax withholding on stock-based compensation (in Shares) | (11,155) | ||||
Net income | 485 | 485 | |||
Balance at Dec. 31, 2023 | $ 169 | $ 45,405 | $ (3,519) | $ 6,787 | $ 48,842 |
Balance (in Shares) at Dec. 31, 2023 | 16,907,095 | (532,924) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash flows from operating activities | ||
Net income | $ 485 | $ 24,244 |
Adjustments to reconcile net income to net cash and cash equivalents used in operating activities: | ||
Bad debt expense | 7 | 145 |
Depreciation and amortization | 275 | 315 |
Gain on sale of assets | (42) | (12,779) |
Loss on disposal of assets | 197 | |
Amortization of right-of-use asset | 186 | 194 |
Provision for product warranties | 603 | 722 |
Stock-based compensation | 328 | 187 |
Deferred income taxes | (427) | (1,713) |
Decrease (increase) in: | ||
Accounts receivable | 6,647 | (5,314) |
Inventories | (8,577) | (3,191) |
Prepaid inventory | 3,275 | (4,774) |
Other current assets | (228) | 711 |
Other noncurrent assets | (312) | (417) |
Increase (decrease) in: | ||
Accounts payable and accrued expenses | (2,728) | 799 |
Operating lease liability | (201) | (199) |
Income tax payable | (853) | 890 |
Deferred revenue | (115) | (602) |
Product warranties | (468) | (827) |
Total adjustments | (2,630) | (25,656) |
Net cash used in operating activities | (2,145) | (1,412) |
Cash flows from investing activities | ||
Acquisition of property and equipment | (229) | (159) |
Proceeds from sale of assets | 42 | 15,000 |
Net cash provided by (used in) investing activities | (187) | 14,841 |
Cash flows from financing activities | ||
Repurchase of common stock | (27) | (2,999) |
Withholding taxes on stock-based compensation | (59) | (109) |
Repayment of loan payable | (51) | |
Exercise of stock options | 46 | 731 |
Net cash used in financing activities | (40) | (2,428) |
Net increase (decrease) in cash and cash equivalents | (2,372) | 11,001 |
Cash and cash equivalents – beginning of period | 25,520 | 14,519 |
Cash and cash equivalents – end of period | 23,148 | 25,520 |
Supplemental disclosure of cash flow information: | ||
Interest paid | 2 | |
Income tax paid | 1,440 | 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 | |
Transfer of inventory to property and equipment | $ 217 | $ 48 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Organization and Summary of Significant 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 subsidiaries, 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 from its corporate headquarters located in Boca Raton, Florida. In March 2024, the Company formed Sensus Healthcare Services, LLC, a wholly-owned subsidiary that provides operational healthcare services in the form of radiation oncology and physics oversight in addition Radiotherapy Technologist for dermatology clinics. 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 subsidiaries. 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. Change in Accounting Estimate In the fourth quarter of 2023, the Company changed its estimate that it was probable that it would make commission payments to certain of its employees as compensation expense. As it is no longer probable the payments will be made, the Company reversed the accrued compensation expense, which is included in accounts payable and accrued expenses in the consolidated balance sheet, related to these payments. This change in estimate resulted in a decrease in selling and marketing expenses of $853,500, or 0.05 per share (basic and diluted) for the year ended December 31, 2023. Reclassification of Prior Year Presentation Certain prior year amounts have been reclassified for consistency with the current year presentation. The reclassifications are limited to the consolidated balance sheets and statements of cash flow and have no impact on the reported results of operations. 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 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, the Company 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) 2023 2022 Product Revenue - recognized at a point in time $ 20,347 $ 40,007 Service Revenue - recognized at a point in time 1,261 1,351 Service Revenue - recognized over time 2,797 3,174 Total Revenue $ 24,405 $ 44,532 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 2023 and 2022 is as follows: (in thousands) Product Service Total 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 Revenue recognized (45 ) (2,797 ) (2,842 ) Amounts invoiced 36 2,691 2,727 December 31, 2023 $ 36 $ 681 $ 717 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, 2023 is as follows: Year Service Revenue 2024 $ 621 2025 40 2026 20 Total $ 681 For the years ended December 31, 2023 and 2022 the Company paid commissions for certain 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. One customer in the U.S. accounted for approximately 61% and 73% of revenue for the years ended December 31, 2023 and 2022, respectively, and 85% and 91% of the accounts receivable as of December 31, 2023 and 2022, respectively. Segment and Geographical Information The following table illustrates total revenue for the years ended December 31, 2023 and 2022 by geographic region. December 31, (in thousands) 2023 2022 United States $ 22,279 91 % $ 41,976 94 % China 1,491 6 % 2,452 6 % Turkey 265 1 % - 0 % Guatemala 190 1 % - 0 % Ireland 135 1 % - 0 % Other 45 0 % 104 0 % Total Revenue $ 24,405 100 % $ 44,532 100 % 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. Accounts Receivable On January 1, 2023, the Company adopted Accounting Standards Update (ASU) 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments 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 estimates future credit losses based on the age of customer receivable balances, collection history and forecasted economic trends. Future collections can be significantly different from historical collection trends or current estimates. The Company monitors exposure to credit losses and maintains allowances for anticipated losses considered necessary under the circumstances. The allowance for expected credit losses was $0 and approximately $107 thousand as of December 31, 2023 and 2022, respectively. Bad debt expense for the years ended December 31, 2023 and 2022 was approximately $7 thousand and $145 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. 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 $217 thousand and $48 thousand for the years ended December 31, 2023 and 2022, 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 stocks 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) 2023 2022 Basic Net income $ 485 $ 24,244 Weighted average common shares outstanding 16,259 16,481 Basic earnings per share $ 0.03 $ 1.47 Diluted Net income $ 485 $ 24,244 Weighted average common shares outstanding 16,259 16,481 Dilutive effects of: Assumed exercise of stock options 5 55 Restricted stock awards 2 82 Dilutive shares 16,266 16,618 Diluted earnings per share $ 0.03 $ 1.46 The shares listed below were not included in the computation of diluted earnings per share because to do so would have been antidilutive for the periods presented: Restricted stock awards 57,250 - Diluted earnings per share includes the dilutive effect of stock options and restricted stock awards that were issued in July 2021. The stock options and 89,750 restricted stock awards were not in the money as the average price of common stock during the second to fourth quarter was less than the exercise prices. The assumed proceeds of stock options and the restricted stock awards for the treasury stock method is the amount the grantee pays on exercise plus the average amount of unrecognized compensation expense. 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 and options 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 and options 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 $1.2 million and $0.9 million for the years ended December 31, 2023 and 2022, 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 Pronouncements 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 In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures |
Disposition
Disposition | 12 Months Ended |
Dec. 31, 2023 | |
Disposition [Abstract] | |
Disposition | Note 2 — Disposition 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, 2023 | |
Property and Equipment [Abstract] | |
Property and Equipment | Note 3 — Property and Equipment Property and equipment consists of the following: As of As of December 31, December 31, Estimated (in thousands) 2023 2022 Useful Lives Operations equipment $ 1,018 $ 1,222 3 years Tradeshow and demo equipment 1,184 990 3 years Computer equipment 145 162 3 years Subtotal 2,347 2,374 Less accumulated depreciation (1,883 ) (2,131 ) Property and Equipment, Net $ 464 $ 243 Depreciation expense was approximately $226 thousand and $219 thousand for the years ended December 31, 2023 and 2022, respectively. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt [Abstract] | |
Debt | Note 4 — DEBT As of December 31, 2022, the Company had a revolving credit facility with Silicon Valley Bank (“SVB”) that provided for maximum borrowings equal to the lesser of (a) the $15 million commitment amount or (b) the borrowing base plus a $7.5 million non-formula sublimit. On March 10, 2023, SVB was closed by the California Department of Financial Protection and Innovation, and the Federal Deposit Insurance Corporation (the “FDIC”) was appointed receiver. On March 13, 2023, the FDIC transferred all deposits, both insured and uninsured, and substantially all assets of SVB to a newly created, full-service FDIC-operated “bridge bank”, Silicon Valley Bridge Bank, N.A. (“SVBB”), chartered by the Office of the Comptroller of the Currency as a national bank. Subsequently, on March 27, 2023, the FDIC entered into a purchase and assumption agreement for all deposits and loans, as well as certain other assets, of SVBB, with First-Citizens Bank &Trust Company (“FCB”), a subsidiary of First Citizens BancShares, Inc. (“First Citizens”). As a result of this transaction, SVB became a wholly owned subsidiary of FCB. On September 11, 2023, the Company entered into a new revolving credit facility (the “Credit Facility”) with Comerica Bank (“Comerica”), replacing the prior facility with SVB, that provides for maximum borrowings of $10 million. The Credit Facility may be terminated by the Company or Comerica at any time without penalty. At December 31, 2023, the available borrowings under this facility were $10 million. Any borrowings bear interest at the Secured Overnight Financing Rate (“SOFR”) plus 2.50% (or 7.88% at December 31, 2023), and would be due upon demand by Comerica. The Credit Facility is secured by all of the Company’s assets. The Credit Facility contains a financial covenant requiring that the Company maintain unencumbered liquid assets having a minimum value of $3,500,000 in a Comerica account. The Company was in compliance with its financial covenants under the respective facilities as of December 31, 2023 and December 31, 2022. There were no |
Product Warranties
Product Warranties | 12 Months Ended |
Dec. 31, 2023 | |
Product Warranties [Abstract] | |
Product Warranties | Note 5 — Product Warranties Changes in product warranty liability were as follows for the years ended December 31, 2023 and 2022: (in thousands) Balance, December 31, 2021 $ 508 Warranties accrued during the period 722 Payments on warranty claims (827 ) Balance, December 31, 2022 $ 403 Warranties accrued during the period 603 Payments on warranty claims (468 ) Balance, December 31, 2023 $ 538 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Note 6 — Leases Operating Lease Agreements The Company leases its headquarters office from an unrelated third party under a lease expiring in September 2027. The amortization of the right of use lease asset was $186 thousand and $194 thousand for the years ended December 31, 2023 and 2022, 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, 2023. Maturity of Operating Lease Liabilities Amount 2024 $ 223 2025 229 2026 236 2027 181 Total undiscounted operating leases payments $ 869 Less: Imputed interest (86 ) Present Value of Operating Lease Liabilities $ 783 Other Information Weighted-average remaining lease term 3.75 years Weighted-average discount rate 5 % Cash paid for amounts included in the measurement of operating lease liabilities was $201 thousand and $199 thousand for the years ended December 31, 2023 and 2022, 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 $228 thousand and $ 255 thousand for the years ended December 31, 2023 and 2022, respectively. The financing component for operating lease obligations represents the effect of discounting the operating lease payments to their present value. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note 7 — Commitments and Contingencies Manufacturing Agreement The Company has a 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. The Company pays this manufacturer for finished goods in advance of the inventory being received. The Company paid this manufacturer approximately $10.3 million and $13.7 million for finished goods for the years ended December 31, 2023 and 2022, respectively. Approximately $12.7 million and $11 million of finished goods was received from this manufacturer for the years ended December 31, 2023 and 2022, respectively. As of December 31, 2023 and December 31, 2022, a prepayment related to these finished goods of approximately $3.0 million and $6.3 million, respectively, was presented in prepaid inventory 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 Department subsequently advised the Company that it was considering expanding the investigation to determine whether the Company had any involvements in physician’s use of certain reimbursements codes. The Company has received two Civil Investigative Demands from the Department seeking documents and written responses in connection with its investigation. The Company has fully cooperated with the Department. The Company disputes that it has engaged in any wrongdoing with respect to such reimbursement claims; among other considerations, 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. As of December 31, 2023, the Company was unable to estimate the cost associated with this matter. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | Note 8 — 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 $89 thousand and $95 thousand for the years ended December 31, 2023 and 2022, respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders Equity [Abstract] | |
Stockholders' Equity | Note 9 — Stockholders’ Equity Preferred Stock The Company has authorized 5 million shares of preferred stock. No shares of preferred stock were issued or outstanding at December 31, 2023 or December 31, 2022. Treasury stock Treasury stock includes shares surrendered by employees for tax withholding on the vesting of restricted stock awards and shares repurchased in open market transactions. 11,155 and 10,096 shares were surrendered by employees for tax withholding for the years ended December 31, 2023 and 2022, respectively. During the years ended 2023 and 2022, the Company repurchased 9,427 and 425,209 shares, respectively, in open market transactions. |
Equity-Based Compensation
Equity-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Equity-Based Compensation [Abstract] | |
Equity-Based Compensation | Note 10 — Equity-based Compensation 2016 and 2017 Equity Incentive Plans The Company’s 2016 Equity Incentive Plan and the 2017 Incentive Plan, as amended in June 2023 (collectively, the “Plans”), provide for the issuance of up to 397,473 shares and 750,000 shares, respectively. In addition, unless the Compensation Committee specifically determines otherwise, the maximum number of shares available under the Plans and the awards granted under the 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. The restricted shares vest 25% per year over a four-year period. The grant date fair value of $4.11 per share is being recognized as expense on a straight-line basis over the vesting period. In 2023, 5,000 shares of common stock vested, and 10,000 shares of unvested common stock were forfeited due to the termination of three employees. On July 21, 2021, a total of 130,000 shares of restricted stock were issued to employees and board members. The restricted shares vest 25% at grant date and 25% per year over a three-year period. The grant date fair value of $3.84 per share is being recognized as expense on a straight-line basis over the vesting period. In On December 19, 2022, a total of 77,000 shares of restricted stock were issued to employees. The restricted shares vest 25% per year over a four-year period. The fair value of $6.40 per share, the stock price on grant date, is being recognized as expense on a straight-line basis over the vesting period. In On January 26, 2023, 10,000 shares of common stock were issued to an employee and were recorded at the fair value of $8.96 per share, the stock price on the grant date. The shares were fully vested on the grant date. Restricted Stock Restricted stock activity for the years ended December 31, 2023 and 2022 is summarized below: Weighted- Average Grant Restricted Date Fair Outstanding at Stock Value December 31, 2022 159,500 $ 5.11 Granted 10,000 8.96 Vested (65,750 ) 5.35 Forfeited (14,000 ) $ 4.76 December 31, 2023 89,750 $ 5.41 The Company recognizes forfeitures as they occur. The reduction of stock compensation expense related to the forfeitures was $31 thousand and $0 for the years ended December 31, 2023 and 2022, respectively. Stock compensation expense related to restricted stock, excluding the recognition of forfeitures, was $359 thousand and $187 thousand for the years ended December 31, 2023 and 2022, respectively. Unrecognized stock compensation expense was approximately $405 thousand as of December 31, 2023, which will be recognized over a weighted-average period of 2.5 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. In the first quarter of 2023, the Company issued 8,334 shares of common stock upon the exercise of stock options with an exercise price of $5.55 per share. The following table summarizes the Company’s stock options activity: Weighted- Average Weighted- Remaining Average Contractual Number of Exercise Term Options Price (In Years) Outstanding - December 31, 2022 97,884 $ 5.55 5.08 Granted - - - Exercised (8,334 ) 5.55 - Expired - - - Outstanding - December 31, 2023 89,550 $ 5.55 4.08 Exercisable – December 31, 2023 89,550 $ 5.55 4.08 Stock compensation expense related to stock options was $0 for the years ended December 31, 2023 and 2022. The stock options outstanding had an intrinsic value of $0 and $183 thousand as of December 31, 2023 and 2022, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes [Abstract] | |
Income Taxes | Note 11 — Income Taxes The income tax provision consisted of the following: For The Years Ended December 31, (in thousands) 2023 2022 Current - Federal $ 249 $ 2,977 Current - State 345 2,482 Deferred - Federal (369 ) 2,218 Deferred - State (58 ) (369 ) Deferred - International - (55 ) Total 167 7,253 Change in valuation allowance - (3,507 ) Income tax provision $ 167 $ 3,746 For the years ended December 31, 2023 and December 31, 2022, the expected tax expense based on the statutory rate is reconciled with the actual tax expense as follows: For The Years Ended December 31, 2023 2022 U.S. federal statutory rate 21.0 % 21.0 % State taxes, net of federal benefit 9.7 % 7.3 % Permanent differences 6.3 % (0.4 %) Change in tax rates 9.0 % (1.1 %) Return-to-provision adjustments 1.9 % (0.9 %) Tax credits (22.3 %) 0.0 % Change in valuation allowance 0.0 % (12.5 %) Income tax provision 25.6 % 13.4 % As of December 31, 2023 and December 31, 2022, the Company’s net deferred tax asset consisted of the effects of temporary differences attributable to the following: As of December 31, 2023 2022 Deferred tax assets: Net operating losses $ 814 $ 849 Stock-based compensation 103 117 Depreciation and amortization 762 209 Accrued expenses and reserves 257 404 Customer deposits 37 35 Tax credits 367 290 Lease accounting, net 2 6 Gross deferred tax assets 2,342 1,910 Valuation allowance (185 ) (185 ) Total deferred tax assets 2,157 1,725 Deferred tax liabilities Prepaid expenses (17 ) (12 ) Total deferred tax liabilities (17 ) (12 ) Net deferred tax assets $ 2,140 $ 1,713 The Company has state net operating loss carryforwards (each, an “NOL”) spread across various jurisdictions with a combined total of approximately $7.6 million as of December 31, 2023. 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 federal and state tax credit carryforwards of approximately $367 thousand as of December 31, 2023. These credit carryforwards, if not used in future periods, will begin to expire in 2029. 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. During the year ended December 31, 2022, the Company recorded a net valuation allowance release of $3.7 million based on management’s reassessment of the amount of its deferred tax assets that are more likely than not to be realized. As of each reporting date, management considers new evidence, both positive and negative, that could affect its view of the future realization of deferred tax assets. As of December 31, 2023, management determined there continues to be sufficient positive evidence that it is more likely than not that the net deferred tax assets (other than foreign net operating losses) are realizable. Management has evaluated and concluded that there were no material uncertain tax positions requiring recognition in the Company’s consolidated financial statements as of December 31, 2023 and 2022. The Company does not expect any significant changes in its unrecognized tax benefits within 12 months of the reporting date. The Company has U.S. federal and certain state tax returns subject to examination by tax authorities beginning with those filed for the year ended December 31, 2017. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 12 — Subsequent Events The Company has evaluated subsequent events and transactions that occurred after the balance sheet date up to the date that the financial statements were issued for potential recognition or disclosure. The Company did not identify any subsequent events that would have required adjustment or disclosure in the financial statements, except for the formation of Sensus Healthcare Services, LLC which is disclosed in Note 1. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 485 | $ 24,244 |
Insider Trading Arrangements
Insider Trading Arrangements | 12 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Organization and Summary of Significant Accounting Policies [Abstract] | |
Description of the Business | Description of the Business Sensus Healthcare, Inc. (together, with its subsidiaries, 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 from its corporate headquarters located in Boca Raton, Florida. In March 2024, the Company formed Sensus Healthcare Services, LLC, a wholly-owned subsidiary that provides operational healthcare services in the form of radiation oncology and physics oversight in addition Radiotherapy Technologist for dermatology clinics. |
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 subsidiaries. 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. |
Change in Accounting Estimate | Change in Accounting Estimate In the fourth quarter of 2023, the Company changed its estimate that it was probable that it would make commission payments to certain of its employees as compensation expense. As it is no longer probable the payments will be made, the Company reversed the accrued compensation expense, which is included in accounts payable and accrued expenses in the consolidated balance sheet, related to these payments. This change in estimate resulted in a decrease in selling and marketing expenses of $853,500, or 0.05 per share (basic and diluted) for the year ended December 31, 2023. |
Reclassification of Prior Year Presentation | Reclassification of Prior Year Presentation Certain prior year amounts have been reclassified for consistency with the current year presentation. The reclassifications are limited to the consolidated balance sheets and statements of cash flow and have no impact on the reported results of operations. |
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 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, the Company 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) 2023 2022 Product Revenue - recognized at a point in time $ 20,347 $ 40,007 Service Revenue - recognized at a point in time 1,261 1,351 Service Revenue - recognized over time 2,797 3,174 Total Revenue $ 24,405 $ 44,532 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 2023 and 2022 is as follows: (in thousands) Product Service Total 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 Revenue recognized (45 ) (2,797 ) (2,842 ) Amounts invoiced 36 2,691 2,727 December 31, 2023 $ 36 $ 681 $ 717 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, 2023 is as follows: Year Service Revenue 2024 $ 621 2025 40 2026 20 Total $ 681 For the years ended December 31, 2023 and 2022 the Company paid commissions for certain 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. One customer in the U.S. accounted for approximately 61% and 73% of revenue for the years ended December 31, 2023 and 2022, respectively, and 85% and 91% of the accounts receivable as of December 31, 2023 and 2022, respectively. |
Segment and Geographical Information | Segment and Geographical Information The following table illustrates total revenue for the years ended December 31, 2023 and 2022 by geographic region. December 31, (in thousands) 2023 2022 United States $ 22,279 91 % $ 41,976 94 % China 1,491 6 % 2,452 6 % Turkey 265 1 % - 0 % Guatemala 190 1 % - 0 % Ireland 135 1 % - 0 % Other 45 0 % 104 0 % Total Revenue $ 24,405 100 % $ 44,532 100 % |
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. |
Accounts Receivable | Accounts Receivable On January 1, 2023, the Company adopted Accounting Standards Update (ASU) 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments 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 estimates future credit losses based on the age of customer receivable balances, collection history and forecasted economic trends. Future collections can be significantly different from historical collection trends or current estimates. The Company monitors exposure to credit losses and maintains allowances for anticipated losses considered necessary under the circumstances. The allowance for expected credit losses was $0 and approximately $107 thousand as of December 31, 2023 and 2022, respectively. Bad debt expense for the years ended December 31, 2023 and 2022 was approximately $7 thousand and $145 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. |
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 $217 thousand and $48 thousand for the years ended December 31, 2023 and 2022, 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 stocks 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) 2023 2022 Basic Net income $ 485 $ 24,244 Weighted average common shares outstanding 16,259 16,481 Basic earnings per share $ 0.03 $ 1.47 Diluted Net income $ 485 $ 24,244 Weighted average common shares outstanding 16,259 16,481 Dilutive effects of: Assumed exercise of stock options 5 55 Restricted stock awards 2 82 Dilutive shares 16,266 16,618 Diluted earnings per share $ 0.03 $ 1.46 The shares listed below were not included in the computation of diluted earnings per share because to do so would have been antidilutive for the periods presented: Restricted stock awards 57,250 - Diluted earnings per share includes the dilutive effect of stock options and restricted stock awards that were issued in July 2021. The stock options and 89,750 restricted stock awards were not in the money as the average price of common stock during the second to fourth quarter was less than the exercise prices. The assumed proceeds of stock options and the restricted stock awards for the treasury stock method is the amount the grantee pays on exercise plus the average amount of unrecognized compensation expense. |
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 and options 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 and options 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 $1.2 million and $0.9 million for the years ended December 31, 2023 and 2022, 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 Pronouncements | Recent Accounting Pronouncements 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 In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization and Summary of Significant Accounting Policies [Abstract] | |
Schedule of Disaggregated Revenue | The components of disaggregated revenue are as follows: For the Years Ended December 31, (in thousands) 2023 2022 Product Revenue - recognized at a point in time $ 20,347 $ 40,007 Service Revenue - recognized at a point in time 1,261 1,351 Service Revenue - recognized over time 2,797 3,174 Total Revenue $ 24,405 $ 44,532 |
Schedule of Deferred Revenue | Deferred revenue activity for 2023 and 2022 is as follows: (in thousands) Product Service Total 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 Revenue recognized (45 ) (2,797 ) (2,842 ) Amounts invoiced 36 2,691 2,727 December 31, 2023 $ 36 $ 681 $ 717 |
Schedule of Estimated Service Revenue to Be Recognized | 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, 2023 is as follows: Year Service Revenue 2024 $ 621 2025 40 2026 20 Total $ 681 |
Schedule of Illustrates Total Revenuee | The following table illustrates total revenue for the years ended December 31, 2023 and 2022 by geographic region. December 31, (in thousands) 2023 2022 United States $ 22,279 91 % $ 41,976 94 % China 1,491 6 % 2,452 6 % Turkey 265 1 % - 0 % Guatemala 190 1 % - 0 % Ireland 135 1 % - 0 % Other 45 0 % 104 0 % Total Revenue $ 24,405 100 % $ 44,532 100 % |
Schedule of Earnings Per Share Computation | The factors used in the earnings per share computation are as follows: For the Years Ended December 31, (in thousands) 2023 2022 Basic Net income $ 485 $ 24,244 Weighted average common shares outstanding 16,259 16,481 Basic earnings per share $ 0.03 $ 1.47 Diluted Net income $ 485 $ 24,244 Weighted average common shares outstanding 16,259 16,481 Dilutive effects of: Assumed exercise of stock options 5 55 Restricted stock awards 2 82 Dilutive shares 16,266 16,618 Diluted earnings per share $ 0.03 $ 1.46 The shares listed below were not included in the computation of diluted earnings per share because to do so would have been antidilutive for the periods presented: Restricted stock awards 57,250 - |
Disposition (Tables)
Disposition (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disposition [Abstract] | |
Schedule of the Assets and Liabilities Sold | 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 (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consists of the following: As of As of December 31, December 31, Estimated (in thousands) 2023 2022 Useful Lives Operations equipment $ 1,018 $ 1,222 3 years Tradeshow and demo equipment 1,184 990 3 years Computer equipment 145 162 3 years Subtotal 2,347 2,374 Less accumulated depreciation (1,883 ) (2,131 ) Property and Equipment, Net $ 464 $ 243 |
Product Warranties (Tables)
Product Warranties (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Product Warranties [Abstract] | |
Schedule of Changes in Product Warranty Liability | Changes in product warranty liability were as follows for the years ended December 31, 2023 and 2022: (in thousands) Balance, December 31, 2021 $ 508 Warranties accrued during the period 722 Payments on warranty claims (827 ) Balance, December 31, 2022 $ 403 Warranties accrued during the period 603 Payments on warranty claims (468 ) Balance, December 31, 2023 $ 538 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Operating Leases | 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, 2023. Maturity of Operating Lease Liabilities Amount 2024 $ 223 2025 229 2026 236 2027 181 Total undiscounted operating leases payments $ 869 Less: Imputed interest (86 ) Present Value of Operating Lease Liabilities $ 783 Other Information Weighted-average remaining lease term 3.75 years Weighted-average discount rate 5 % |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity-Based Compensation [Abstract] | |
Schedule of Restricted Stock Activity | Restricted stock activity for the years ended December 31, 2023 and 2022 is summarized below: Weighted- Average Grant Restricted Date Fair Outstanding at Stock Value December 31, 2022 159,500 $ 5.11 Granted 10,000 8.96 Vested (65,750 ) 5.35 Forfeited (14,000 ) $ 4.76 December 31, 2023 89,750 $ 5.41 |
Schedule of Stock Option Activity | The following table summarizes the Company’s stock options activity: Weighted- Average Weighted- Remaining Average Contractual Number of Exercise Term Options Price (In Years) Outstanding - December 31, 2022 97,884 $ 5.55 5.08 Granted - - - Exercised (8,334 ) 5.55 - Expired - - - Outstanding - December 31, 2023 89,550 $ 5.55 4.08 Exercisable – December 31, 2023 89,550 $ 5.55 4.08 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes [Abstract] | |
Schedule of Income Tax Provision | The income tax provision consisted of the following: For The Years Ended December 31, (in thousands) 2023 2022 Current - Federal $ 249 $ 2,977 Current - State 345 2,482 Deferred - Federal (369 ) 2,218 Deferred - State (58 ) (369 ) Deferred - International - (55 ) Total 167 7,253 Change in valuation allowance - (3,507 ) Income tax provision $ 167 $ 3,746 |
Schedule of Expected Tax Expense Based on the Statutory Rate | For the years ended December 31, 2023 and December 31, 2022, the expected tax expense based on the statutory rate is reconciled with the actual tax expense as follows: For The Years Ended December 31, 2023 2022 U.S. federal statutory rate 21.0 % 21.0 % State taxes, net of federal benefit 9.7 % 7.3 % Permanent differences 6.3 % (0.4 %) Change in tax rates 9.0 % (1.1 %) Return-to-provision adjustments 1.9 % (0.9 %) Tax credits (22.3 %) 0.0 % Change in valuation allowance 0.0 % (12.5 %) Income tax provision 25.6 % 13.4 % |
Schedule of Net Deferred Tax Asset | As of December 31, 2023 and December 31, 2022, the Company’s net deferred tax asset consisted of the effects of temporary differences attributable to the following: As of December 31, 2023 2022 Deferred tax assets: Net operating losses $ 814 $ 849 Stock-based compensation 103 117 Depreciation and amortization 762 209 Accrued expenses and reserves 257 404 Customer deposits 37 35 Tax credits 367 290 Lease accounting, net 2 6 Gross deferred tax assets 2,342 1,910 Valuation allowance (185 ) (185 ) Total deferred tax assets 2,157 1,725 Deferred tax liabilities Prepaid expenses (17 ) (12 ) Total deferred tax liabilities (17 ) (12 ) Net deferred tax assets $ 2,140 $ 1,713 |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Organization and Summary of Significant Accounting Policies [Line Items] | ||
Selling and marketing expenses | $ 853,500 | |
Basic (in Dollars per share) | $ 0.05 | |
Diluted (in Dollars per share) | $ 0.05 | |
Allowance for expected credit losses | $ 0 | $ 107,000 |
Bad debt expense | 7,000 | 145,000 |
Inventory | $ 217,000 | 48,000 |
Stock options (in Shares) | 89,750 | |
Advertising and promotion costs | $ 1,200,000 | $ 900,000 |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer [Member] | ||
Organization and Summary of Significant Accounting Policies [Line Items] | ||
Concentration risk percentage | 61% | 73% |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer [Member] | ||
Organization and Summary of Significant Accounting Policies [Line Items] | ||
Concentration risk percentage | 85% | 91% |
Organization and Summary of S_4
Organization and Summary of Significant Accounting Policies (Details) - Schedule of Disaggregated Revenue - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Disaggregated Revenue [Line Items] | ||
Revenue | $ 24,405 | $ 44,532 |
Product Revenue - recognized at a point in time [Member] | ||
Schedule of Disaggregated Revenue [Line Items] | ||
Revenue | 20,347 | 40,007 |
Service Revenue - recognized at a point in time [Member] | ||
Schedule of Disaggregated Revenue [Line Items] | ||
Revenue | 1,261 | 1,351 |
Service Revenue - recognized over time [Member] | ||
Schedule of Disaggregated Revenue [Line Items] | ||
Revenue | $ 2,797 | $ 3,174 |
Organization and Summary of S_5
Organization and Summary of Significant Accounting Policies (Details) - Schedule of Deferred Revenue - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Deferred Revenue [Line Items] | ||
Beginning balance | $ 832 | $ 1,434 |
Ending balance | 717 | 832 |
Revenue recognized | (2,842) | (4,189) |
Amounts invoiced | 2,727 | 3,587 |
Product [Member] | ||
Schedule of Deferred Revenue [Line Items] | ||
Beginning balance | 45 | 97 |
Ending balance | 36 | 45 |
Revenue recognized | (45) | (1,015) |
Amounts invoiced | 36 | 963 |
Service [Member] | ||
Schedule of Deferred Revenue [Line Items] | ||
Beginning balance | 787 | 1,337 |
Ending balance | 681 | 787 |
Revenue recognized | (2,797) | (3,174) |
Amounts invoiced | $ 2,691 | $ 2,624 |
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, 2023 USD ($) |
Schedule of Estimated Service Revenue to be Recognized [Abstract] | |
2024 | $ 621 |
2025 | 40 |
2026 | 20 |
Total | $ 681 |
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, 2023 | Dec. 31, 2022 | |
Schedule of Illustrates Total Revenue [Line Items] | ||
Total revenue | $ 24,405 | $ 44,532 |
Total revenue, percentage | 100% | 100% |
United States [Member] | ||
Schedule of Illustrates Total Revenue [Line Items] | ||
Total revenue | $ 22,279 | $ 41,976 |
Total revenue, percentage | 91% | 94% |
China [Member] | ||
Schedule of Illustrates Total Revenue [Line Items] | ||
Total revenue | $ 1,491 | $ 2,452 |
Total revenue, percentage | 6% | 6% |
Turkey [Member] | ||
Schedule of Illustrates Total Revenue [Line Items] | ||
Total revenue | $ 265 | |
Total revenue, percentage | 1% | 0% |
Guatemala [Member] | ||
Schedule of Illustrates Total Revenue [Line Items] | ||
Total revenue | $ 190 | |
Total revenue, percentage | 1% | 0% |
Ireland [Member] | ||
Schedule of Illustrates Total Revenue [Line Items] | ||
Total revenue | $ 135 | |
Total revenue, percentage | 1% | 0% |
Other [Member] | ||
Schedule of Illustrates Total Revenue [Line Items] | ||
Total revenue | $ 45 | $ 104 |
Total revenue, percentage | 0% | 0% |
Organization and Summary of S_8
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, 2023 | Dec. 31, 2022 | |
Basic | ||
Net income (in Dollars) | $ 485 | $ 24,244 |
Weighted average common shares outstanding | 16,259 | 16,481 |
Basic earnings per share (in Dollars per share) | $ 0.03 | $ 1.47 |
Diluted | ||
Net income (in Dollars) | $ 485 | $ 24,244 |
Weighted average common shares outstanding | 16,259 | 16,481 |
Dilutive effects of: | ||
Assumed exercise of stock options | 5 | 55 |
Restricted stock awards | 2 | 82 |
Dilutive shares | 16,266 | 16,618 |
Diluted earnings per share (in Dollars per share) | $ 0.03 | $ 1.46 |
The shares listed below were not included in the computation of diluted earnings per share because to do so would have been antidilutive for the periods presented: | ||
Restricted stock awards | 57,250 |
Disposition (Details)
Disposition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 25, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Gain (Loss) on Disposition of Assets for Financial Service Operations [Abstract] | |||
Gain (Loss) on disposition of assets | $ 15,000 | $ 42 | $ 12,779 |
Disposition (Details) - Schedul
Disposition (Details) - Schedule of the Assets and Liabilities Sold - Book Value [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Disposition (Details) - Schedule of the Assets and Liabilities Sold [Line Items] | |
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, 2023 | Dec. 31, 2022 | |
Property and Equipment [Abstract] | ||
Depreciation expenses | $ 226 | $ 219 |
Property and Equipment (Detai_2
Property and Equipment (Details) - Schedule of Property and Equipment - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of Property and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 2,347 | $ 2,374 |
Less accumulated depreciation | (1,883) | (2,131) |
Property and Equipment, Net | 464 | 243 |
Operations equipment [Member] | ||
Schedule of Property and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,018 | 1,222 |
Property, plant and equipment, estimated useful Life | 3 years | |
Tradeshow and demo equipment [Member] | ||
Schedule of Property and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,184 | 990 |
Property, plant and equipment, estimated useful Life | 3 years | |
Computer equipment [Member] | ||
Schedule of Property and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 145 | $ 162 |
Property, plant and equipment, estimated useful Life | 3 years |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Sep. 11, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||
Commitment amount | $ 10 | $ 7.5 | |
Borrowing facility amount | $ 10 | ||
Borrowing interest | 7.88% | ||
Liquid assets | $3,500,000 | ||
Borrowings outstanding | |||
Secured Overnight Financing Rate [Member] | |||
Debt Instrument [Line Items] | |||
Borrowing interest | 2.50% | ||
Silicon valley bank [Member] | |||
Debt Instrument [Line Items] | |||
Commitment amount | $ 15 |
Product Warranties (Details) -
Product Warranties (Details) - Schedule of Changes in Product Warranty Liability - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Changes in Product Warranty Liability [Abstract] | ||
Balance, beginning of period | $ 403 | $ 508 |
Warranties accrued during the period | 603 | 722 |
Payments on warranty claims | (468) | (827) |
Balance,ending of period | $ 538 | $ 403 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Amortization of the ROU asset | $ 186 | $ 194 |
Operating lease liabilities | 201 | 199 |
Operating lease cost | $ 228 | $ 255 |
Leases (Details) - Schedule of
Leases (Details) - Schedule of Operating Leases $ in Thousands | Dec. 31, 2023 USD ($) |
Schedule of Operating Leases [Abstract] | |
2024 | $ 223 |
2025 | 229 |
2026 | 236 |
2027 | 181 |
Total undiscounted operating leases payments | 869 |
Less: Imputed interest | (86) |
Present Value of Operating Lease Liabilities | $ 783 |
Other Information | |
Weighted-average remaining lease term | 3 years 9 months |
Weighted-average discount rate | 5% |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Commitments and Contingencies [Line Items] | ||
Finished goods | $ 10.3 | $ 13.7 |
Finished goods received | 12.7 | 11 |
Prepayment related to these finished goods | $ 3 | $ 6.3 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Employee Benefit Plans [Abstract] | ||
Benefit plan expense | $ 89 | $ 95 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Class of Stock [Line Items] | ||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Surrendered by employees for tax withholding | 11,155 | 10,096 |
Repurchased shares | 9,427 | |
Treasury stock [Member] | ||
Class of Stock [Line Items] | ||
Repurchased shares | 425,209 |
Equity-Based Compensation (Deta
Equity-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Jan. 26, 2023 | Dec. 31, 2022 | Dec. 19, 2022 | Feb. 01, 2020 | Jul. 21, 2021 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Equity-Based Compensation [Line Items] | ||||||||
Shares available, grant | 58,973 | 312,973 | 58,973 | |||||
Restricted stock issued | 89,750 | |||||||
Restricted vest percentage | 25% | 25% | 25% | |||||
Restricted grant percentage | 25% | |||||||
Stock price for grant date (in Dollars per share) | $ 8.96 | |||||||
Stock compensation expense (in Dollars) | $ 31 | $ 0 | ||||||
Unrecognized stock compensation expense (in Dollars) | $ 405 | |||||||
Recognized over weighted average | 2 years 6 months | |||||||
2016 Equity Incentive Plan [Member] | ||||||||
Equity-Based Compensation [Line Items] | ||||||||
Issuance shares | 397,473 | |||||||
2017 Equity Incentive Plan [Member] | ||||||||
Equity-Based Compensation [Line Items] | ||||||||
Issuance shares | 750,000 | |||||||
Common Stock [Member] | ||||||||
Equity-Based Compensation [Line Items] | ||||||||
Vested shares | 32,500 | 18,250 | ||||||
Unvested common stock shares | 4,000 | |||||||
Common stock shares issued for employee | 10,000 | |||||||
Common Stock [Member] | 2016 and 2017 Equity Incentive Plans [Member] | ||||||||
Equity-Based Compensation [Line Items] | ||||||||
Vested shares | 5,000 | |||||||
Unvested common stock shares | 10,000 | |||||||
Equity Option [Member] | ||||||||
Equity-Based Compensation [Line Items] | ||||||||
Issuance shares | 97,884 | 89,550 | 97,884 | |||||
Stock compensation expense (in Dollars) | $ 0 | $ 0 | ||||||
Grant date term | 5 years 29 days | 4 years 29 days | ||||||
Exercise stock | 8,334 | |||||||
Exercise price (in Dollars per share) | $ 5.55 | |||||||
Stock options outstanding intrinsic value (in Dollars) | $ 183 | $ 0 | $ 183 | |||||
Equity Option [Member] | 2016 and 2017 Equity Incentive Plans [Member] | ||||||||
Equity-Based Compensation [Line Items] | ||||||||
Grant date term | 10 years | |||||||
Equity Option [Member] | Common Stock [Member] | ||||||||
Equity-Based Compensation [Line Items] | ||||||||
Exercise stock | 8,334 | |||||||
Exercise price (in Dollars per share) | $ 5.55 | |||||||
Restricted Stock [Member] | ||||||||
Equity-Based Compensation [Line Items] | ||||||||
Restricted stock issued | 159,500 | 89,750 | 159,500 | |||||
Grant date fair value (in Dollars per share) | $ 5.11 | $ 5.41 | $ 5.11 | |||||
Stock compensation expense (in Dollars) | $ 359 | $ 187 | ||||||
Restricted Stock [Member] | 2016 and 2017 Equity Incentive Plans [Member] | ||||||||
Equity-Based Compensation [Line Items] | ||||||||
Restricted stock issued | 77,000 | 35,000 | ||||||
Grant date fair value (in Dollars per share) | $ 6.4 | $ 4.11 | $ 3.84 | |||||
Restricted Stock [Member] | Board of Directors Chairman [Member] | 2016 and 2017 Equity Incentive Plans [Member] | ||||||||
Equity-Based Compensation [Line Items] | ||||||||
Restricted stock issued | 130,000 |
Equity-Based Compensation (De_2
Equity-Based Compensation (Details) - Schedule of Restricted Stock Activity - Restricted Stock [Member] | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Schedule of Restricted Stock Activity [Line Items] | |
Restricted Stock, balance at beginning | shares | 159,500 |
Weighted-Average Grant Date Fair Value, balance at beginning | $ / shares | $ 5.11 |
Restricted Stock, Granted | shares | 10,000 |
Weighted-Average Grant Date Fair Value, Granted | $ / shares | $ 8.96 |
Restricted Stock, Vested | shares | (65,750) |
Weighted-Average Grant Date Fair Value, Vested | $ / shares | $ 5.35 |
Restricted Stock, Forfeited | shares | (14,000) |
Weighted-Average Grant Date Fair Value, Forfeited | $ / shares | $ 4.76 |
Restricted Stock, balance at ending | shares | 89,750 |
Weighted-Average Grant Date Fair Value, balance at ending | $ / shares | $ 5.41 |
Equity-Based Compensation (De_3
Equity-Based Compensation (Details) - Schedule of Stock Option Activity - Stock Options [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2023 | |
Schedule of Stock Option Activity [Line Items] | ||
Number of Options, Granted | ||
Weighted- Average Exercise Price, Granted | ||
Weighted- Average Remaining Contractual Term (In Years), Granted | ||
Number of Options, Exercised | (8,334) | |
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 | ||
Number of Options, Outstanding | 97,884 | 89,550 |
Weighted- Average Exercise Price, Outstanding | $ 5.55 | $ 5.55 |
Weighted- Average Remaining Contractual Term (In Years), Outstanding | 5 years 29 days | 4 years 29 days |
Number of Options, Exercisable – December 31, 2023 | 89,550 | |
Weighted- Average Exercise Price, Exercisable – December 31, 2023 | $ 5.55 | |
Weighted- Average Remaining Contractual Term (In Years), Exercisable –December 31, 2023 | 4 years 29 days |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Taxes (Details) [Line Items] | ||
Aggregate amount | $ 7,600 | |
Federal and state tax credit carryforwards | 367 | $ 290 |
Net valuation allowance | $ 2,157 | 1,725 |
Deferred Tax Assets [Member] | ||
Income Taxes (Details) [Line Items] | ||
Net valuation allowance | $ 3,700 |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of Income Tax Provision - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Income Tax Provision [Abstract] | ||
Current - Federal | $ 249 | $ 2,977 |
Current - State | 345 | 2,482 |
Deferred - Federal | (369) | 2,218 |
Deferred - State | (58) | (369) |
Deferred - International | (55) | |
Total | 167 | 7,253 |
Change in valuation allowance | (3,507) | |
Income tax provision | $ 167 | $ 3,746 |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of Expected Tax Expense Based on the Statutory Rate | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Schedule of Expected Tax Expense Based on the Statutory Rate [Abstract] | ||
U.S. federal statutory rate | 21% | 21% |
State taxes, net of federal benefit | 9.70% | 7.30% |
Permanent differences | 6.30% | (0.40%) |
Change in tax rates | 9% | (1.10%) |
Return-to-provision adjustments | 1.90% | (0.90%) |
Tax credits | (22.30%) | 0% |
Change in valuation allowance | 0% | (12.50%) |
Income tax provision | 25.60% | 13.40% |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of Net Deferred Tax Asset - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Net operating losses | $ 814 | $ 849 |
Stock-based compensation | 103 | 117 |
Depreciation and amortization | 762 | 209 |
Accrued expenses and reserves | 257 | 404 |
Customer deposits | 37 | 35 |
Tax credits | 367 | 290 |
Lease accounting, net | 2 | 6 |
Gross deferred tax assets | 2,342 | 1,910 |
Valuation allowance | (185) | (185) |
Total deferred tax assets | 2,157 | 1,725 |
Deferred tax liabilities | ||
Prepaid expenses | (17) | (12) |
Total deferred tax liabilities | (17) | (12) |
Net deferred tax assets | $ 2,140 | $ 1,713 |