Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 23, 2019 | |
Document Information [Line Items] | ||
Entity Registrant Name | Nuvectra Corp | |
Entity Central Index Key | 0001648893 | |
Trading Symbol | nvtr | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding (in shares) | 17,885,297 | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Title of 12(b) Security | Common stock |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 69,764 | $ 99,240 |
Trade accounts receivable, net of allowance for doubtful accounts of $641 and $691 in 2019 and 2018, respectively | 9,430 | 12,324 |
Inventories | 8,149 | 6,627 |
Prepaid expenses and other current assets | 2,502 | 1,117 |
Total current assets | 89,845 | 119,308 |
Property, plant and equipment, net | 5,186 | 5,213 |
Goodwill | 33,491 | 33,491 |
Other long-term assets | 1,166 | |
Total assets | 129,688 | 158,012 |
Current liabilities: | ||
Accounts payable | 5,431 | 7,950 |
Accrued liabilities | 4,997 | 5,736 |
Accrued compensation | 3,559 | 6,858 |
Short-term debt | 4,500 | |
Total current liabilities | 18,487 | 20,544 |
Other long-term liabilities | 1,481 | 490 |
Long-term debt, net | 40,173 | 44,082 |
Total liabilities | 60,141 | 65,116 |
Commitments and contingencies (Note 8) | ||
Stockholders’ equity: | ||
Common stock, $0.001 par value, 100,000,000 shares authorized; 17,885,297 and 17,689,928 shares issued and outstanding in 2019 and 2018, respectively | 18 | 18 |
Additional paid-in capital | 221,410 | 218,844 |
Accumulated other comprehensive gain | 2 | 1 |
Accumulated deficit | (151,883) | (125,967) |
Total stockholders’ equity | 69,547 | 92,896 |
Total liabilities and stockholders’ equity | $ 129,688 | $ 158,012 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Trade accounts receivable, allowance for doubtful accounts | $ 641 | $ 691 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 17,885,297 | 17,689,928 |
Common stock, shares outstanding (in shares) | 17,885,297 | 17,689,928 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Sales: | ||||
Sales | $ 12,345 | $ 11,903 | $ 23,470 | $ 21,440 |
Cost of sales: | ||||
Cost of sales | 5,548 | 5,800 | 11,585 | 10,220 |
Gross profit | 6,797 | 6,103 | 11,885 | 11,220 |
Operating expenses: | ||||
Selling, general and administrative expenses | 12,962 | 13,198 | 27,708 | 25,109 |
Research, development and engineering costs, net | 4,039 | 3,937 | 8,266 | 6,798 |
Total operating expenses | 17,001 | 17,135 | 35,974 | 31,907 |
Operating loss | (10,204) | (11,032) | (24,089) | (20,687) |
Interest expense, net | 966 | 936 | 1,817 | 1,786 |
Other (income) expense, net | (10) | 54 | (16) | 77 |
Loss from continuing operations before taxes | (11,160) | (12,022) | (25,890) | (22,550) |
Provision (benefit) for income taxes | (14) | (39) | 26 | (29) |
Loss from continuing operations | (11,146) | (11,983) | (25,916) | (22,521) |
Discontinued operations: | ||||
Income from operations of discontinued operations | 259 | 267 | ||
Provision for income taxes | 54 | 57 | ||
Income from discontinued operations | 205 | 210 | ||
Net loss | (11,146) | (11,778) | (25,916) | (22,311) |
Other comprehensive gain: | ||||
Unrealized holding gain on investments arising during period | 1 | 1 | 1 | |
Other comprehensive gain | 1 | 1 | 1 | |
Comprehensive loss | $ (11,145) | $ (11,778) | $ (25,915) | $ (22,310) |
Basic and diluted net loss per share: | ||||
Loss from continuing operations (in dollars per share) | $ (0.62) | $ (0.84) | $ (1.46) | $ (2.06) |
Income from discontinued operations (in dollars per share) | 0.01 | 0.02 | ||
Basic and diluted net loss per share (in dollars per share) | $ (0.62) | $ (0.83) | $ (1.46) | $ (2.04) |
Basic and diluted weighted average shares outstanding (in shares) | 17,848 | 14,209 | 17,794 | 10,922 |
Product [Member] | ||||
Sales: | ||||
Sales | $ 12,289 | $ 11,509 | $ 23,332 | $ 20,590 |
Cost of sales: | ||||
Cost of sales | 5,466 | 5,326 | 11,374 | 9,392 |
Service [Member] | ||||
Sales: | ||||
Sales | 56 | 394 | 138 | 850 |
Cost of sales: | ||||
Cost of sales | $ 82 | $ 474 | $ 211 | $ 828 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (25,916) | $ (22,311) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Provision for uncollectible accounts | 170 | 122 |
Write-downs of excess and obsolete inventories | 92 | 335 |
Depreciation and amortization | 741 | 903 |
Debt related amortization included in interest expense | 602 | 533 |
Stock-based compensation | 2,248 | 1,254 |
Amortization of operating lease right-of-use assets | 211 | |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | 2,724 | 716 |
Inventories | (1,614) | (74) |
Prepaid expenses and other current assets | (929) | (781) |
Accounts payable and other current liabilities | (3,847) | (904) |
Accrued compensation | (3,299) | 356 |
Other long-term liabilities | (264) | 45 |
Net cash used in operating activities | (29,081) | (19,806) |
Cash flows from investing activities: | ||
Acquisition of property, plant and equipment | (702) | (407) |
Net cash used in investing activities | (702) | (407) |
Cash flows from financing activities: | ||
Borrowings under credit facility, net | 11,711 | |
Proceeds from the sale of common stock | 24,046 | |
Payments of financing costs related to issuance of common stock | (246) | |
Proceeds from the exercise of stock options and warrants | 318 | 231 |
Payment of debt issuance costs and other financing activities | (11) | |
Net cash provided by financing activities | 307 | 35,742 |
Net (decrease) increase in cash and cash equivalents | (29,476) | 15,529 |
Cash and cash equivalents, beginning of period | 99,240 | 28,165 |
Cash and cash equivalents, end of period | 69,764 | 43,694 |
Supplemental Disclosure of Cash Flow Information: | ||
Income taxes paid | 20 | |
Interest paid | 2,186 | 1,523 |
Acquisition of property, plant and equipment accrued not paid | $ 12 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balance (in shares) at Dec. 31, 2017 | 10,849,000 | ||||
Balance at Dec. 31, 2017 | $ 11 | $ 125,999 | $ (77,836) | $ (1) | $ 48,173 |
Option exercises (in shares) | 11,000 | ||||
Option exercises | 76 | 76 | |||
Restricted stock issued, net of stock forfeited (in shares) | 38,000 | ||||
Restricted stock issued, net of stock forfeited | |||||
Stock-based compensation | 551 | 551 | |||
Net loss | (10,533) | (10,533) | |||
Unrealized holding period gain | 1 | 1 | |||
Issuance of common stock, net of issuance costs of $2,190 (in shares) | 3,249,000 | ||||
Issuance of common stock, net of issuance costs of $2,190 | $ 3 | 23,797 | 23,800 | ||
Issuance of common stock warrants | 455 | 455 | |||
Balance (in shares) at Mar. 31, 2018 | 14,147,000 | ||||
Balance at Mar. 31, 2018 | $ 14 | 150,878 | (88,369) | 62,523 | |
Balance (in shares) at Dec. 31, 2017 | 10,849,000 | ||||
Balance at Dec. 31, 2017 | $ 11 | 125,999 | (77,836) | (1) | 48,173 |
Net loss | (22,311) | ||||
Unrealized holding period gain | 1 | ||||
Balance (in shares) at Jun. 30, 2018 | 14,254,000 | ||||
Balance at Jun. 30, 2018 | $ 14 | 151,736 | (100,147) | 51,603 | |
Balance (in shares) at Mar. 31, 2018 | 14,147,000 | ||||
Balance at Mar. 31, 2018 | $ 14 | 150,878 | (88,369) | 62,523 | |
Option exercises (in shares) | 21,000 | ||||
Option exercises | 155 | 155 | |||
Restricted stock issued, net of stock forfeited (in shares) | 86,000 | ||||
Restricted stock issued, net of stock forfeited | |||||
Stock-based compensation | 703 | 703 | |||
Net loss | (11,778) | (11,778) | |||
Unrealized holding period gain | |||||
Balance (in shares) at Jun. 30, 2018 | 14,254,000 | ||||
Balance at Jun. 30, 2018 | $ 14 | 151,736 | (100,147) | 51,603 | |
Balance (in shares) at Dec. 31, 2018 | 17,690,000 | ||||
Balance at Dec. 31, 2018 | $ 18 | 218,844 | (125,967) | 1 | 92,896 |
Option exercises (in shares) | 48,000 | ||||
Option exercises | 301 | 301 | |||
Restricted stock issued, net of stock forfeited (in shares) | 54,000 | ||||
Restricted stock issued, net of stock forfeited | |||||
Stock-based compensation | 1,126 | 1,126 | |||
Net loss | (14,770) | (14,770) | |||
Balance (in shares) at Mar. 31, 2019 | 17,792,000 | ||||
Balance at Mar. 31, 2019 | $ 18 | 220,271 | (140,737) | 1 | 79,553 |
Balance (in shares) at Dec. 31, 2018 | 17,690,000 | ||||
Balance at Dec. 31, 2018 | $ 18 | 218,844 | (125,967) | 1 | $ 92,896 |
Option exercises (in shares) | 50,115 | ||||
Net loss | $ (25,916) | ||||
Unrealized holding period gain | 1 | ||||
Balance (in shares) at Jun. 30, 2019 | 17,885,000 | ||||
Balance at Jun. 30, 2019 | $ 18 | 221,410 | (151,883) | 2 | 69,547 |
Balance (in shares) at Mar. 31, 2019 | 17,792,000 | ||||
Balance at Mar. 31, 2019 | $ 18 | 220,271 | (140,737) | 1 | 79,553 |
Restricted stock issued, net of stock forfeited (in shares) | 70,000 | ||||
Restricted stock issued, net of stock forfeited | |||||
Stock-based compensation | 1,122 | 1,122 | |||
Net loss | (11,146) | (11,146) | |||
Option and warrant exercises (in shares) | 23,000 | ||||
Option and warrant exercises | 17 | 17 | |||
Unrealized holding period gain | 1 | 1 | |||
Balance (in shares) at Jun. 30, 2019 | 17,885,000 | ||||
Balance at Jun. 30, 2019 | $ 18 | $ 221,410 | $ (151,883) | $ 2 | $ 69,547 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) (Parentheticals) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Additional Paid-in Capital [Member] | |
Stock issuance costs | $ 2,190 |
Note 1 - Summary of Significant
Note 1 - Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations – Nuvectra Corporation (“Nuvectra” or the “Company”), is a neurostimulation company committed to helping physicians improve the lives of people with chronic conditions. The Algovita® Spinal Cord Stimulation (“SCS”) System (“Algovita”) is the Company’s first commercial offering and is Conformité Européene (“CE”) marked and United States Food & Drug Administration (“FDA”) approved for the treatment of chronic pain of the trunk and/or limbs. Nuvectra’s innovative technology platform also has capabilities under development to support other neurological indications such as sacral neuromodulation (“SNM”) for the treatment of overactive bladder and deep brain stimulation (“DBS”) for the treatment of Parkinson’s disease. On January 2, 2019, the Company announced that it had completed the divestiture of its wholly owned subsidiary, NeuroNexus Technologies, Inc. (“NeuroNexus”), effective December 31, 2018. As a result, the results of operations of NeuroNexus have been classified as discontinued operations in the condensed consolidated statements of operations for all periods presented. The condensed consolidated cash flow statements include cash flows related to the discontinued operations due to Nuvectra’s (the parent company) centralized treasury and cash management processes, and accordingly cash flow amounts for discontinued operations are disclosed in Note 2 “Discontinued Operations.” All results and information in the condensed consolidated financial statements and related notes are presented as continuing operations and exclude NeuroNexus unless otherwise noted specifically as discontinued operations. Refer to Note 2 “Discontinued Operations” for additional information. On July 2, 2019, following the end of the quarterly period ended June 30, 2019, the Company merged its wholly-owned subsidiaries, Algostim, LLC (“Algostim”) and PelviStim LLC (“PelviStim”), with and into the Company, and the separate existence of these former subsidiaries ceased. Prior to the merger, neither Algostim nor PelviStim conducted operations, generated revenues or had operating assets, and the subsidiaries were not reported as a separate segment. The merger of Algostim and PelviStim with and into the Company was not a strategic transaction, and the merger will have no effect on the Company’s operations or financial results. Basis of Presentation – The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information (Accounting Standards Codification (“ASC”) 270, Interim Reporting ) and with the instructions to Form 10 -Q and Article 10 of Regulation S- X. Accordingly, they do not include all of the information necessary for a full presentation of financial position, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America. Operating results for interim periods are not necessarily indicative of results that may be expected for the fiscal year as a whole. The condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the results of Nuvectra for the periods presented. These statements should be read in conjunction with the financial statements and footnotes thereto included in the Company’s Annual Report on Form 10 -K for the year ended December 31, 2018. Liquidity and Capital Resources – The Company has incurred significant net losses and negative cash flows from operations since inception and expects to incur additional net losses for the foreseeable future. Based on its current plans and expectations, the Company estimates that its cash on hand, which includes proceeds from the Company’s follow-on common stock offerings completed in the first and third quarters of 2018, Credit Facility draw-downs, proceeds from the divestiture of NeuroNexus, and cash generated from sales, should meet its cash needs for at least the next twelve months. The Company periodically evaluates its liquidity requirements, alternative uses of capital, capital needs and available resources. As a result of this process, the Company has in the past sought, and may in the future seek, to explore strategic alternatives to finance its business plan, including but not limited to, a public offering of its common stock, private equity or debt financings, sale of non-strategic assets, or other sources, such as strategic partnerships. The Company has elected and may continue to elect to make near-term decisions, including engaging in various capital generating initiatives, to provide additional liquidity. If the Company is unable to raise additional funds when needed, it may be required to delay, reduce, or terminate some or all of its development plans. The Company is also focusing on increasing the sales of its products to generate cash flow to fund its operations. However, there can be no assurance that the Company will be successful in its plans described above or in attracting alternative debt or equity financing. Use of Estimates – The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of sales and expenses during the reporting period. Actual results could differ materially from those estimates. Significant items subject to such estimates and assumptions include inventories, tangible and intangible asset valuations, revenue, stock-based compensation, warrants, certain accruals, and income tax accounts. Concentration of Credit Risk – Financial instruments that potentially subject the Company to concentration of credit risk consist principally of trade accounts receivable owed to the Company by its customers. The Company performs on-going credit evaluations of its customers. No customer individually accounted for more than 10% of the Company’s consolidated revenues in the six months ended June 30, 2019 or 2018. No customer individually accounted for more than 10% of the Company’s accounts receivable at June 30, 2019 or December 31, 2018. Additionally, the Company maintains cash deposits with major banks, which from time to time may exceed insured limits. The Company performs on-going credit evaluations of its banks. See Note 11 “Business Segment, Geographic and Concentration Risk Information” for additional information. Inventories – The value of inventories, comprised solely of finished goods, are stated at the lesser of net realizable value or cost, determined using the first -in, first -out (“FIFO”) method. To value inventory, management must estimate excess or obsolete inventory, as well as inventory that is not of saleable quality. This valuation involves an inherent level of risk and uncertainty due to unpredictability of trends in the industry and customer demand for the Company’s products. In assessing the ultimate realization of inventories, management must make judgments as to future demand requirements and compare that with the current or committed inventory levels. Reserve requirements generally increase as demand decreases due to market conditions and technological and product life-cycle changes. Write-downs of excess and obsolete inventories were $0.1 million and $0.2 million in the second quarter of 2019 and 2018, respectively. Future events and variations in assumptions may cause significant fluctuations in this estimate and could have a material impact on the Company’s results. Impairment of Long-Lived Assets – The Company assesses the impairment of definite-lived long-lived assets or asset groups when events or changes in circumstances indicate that the carrying value may not be recoverable. Factors that are considered in deciding when to perform an impairment review include: a significant decrease in the market price of the asset or asset group; a significant change in the extent or manner in which a long-lived asset or asset group is being used or in its physical condition; a significant change in legal factors or in the business climate that could affect the value of a long-lived asset or asset group, including an action or assessment by a regulator; an accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction; a current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset or asset group; or a current expectation that, more likely than not, a long-lived asset or asset group will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. The term more likely than not refers to a level of likelihood that is more than 50 percent. Potential recoverability is measured by comparing the carrying amount of the asset or asset group to its related total future undiscounted cash flows. The projected cash flows for each asset or asset group considers multiple factors, including current revenue from existing customers, proceeds from the sale of the asset or asset group and expected profit margins giving consideration to historical and expected margins. If the carrying value is not recoverable, the asset or asset group is considered to be impaired. Impairment is measured by comparing the asset or asset group’s carrying amount to its fair value. When it is determined that useful lives of assets are shorter than originally estimated, and no impairment is present, the rate of depreciation is accelerated in order to fully depreciate the assets over their new shorter useful lives. The Company did not identify any indicators of impairment for the Nuvectra asset group in the first six months of 2019 or 2018; however, as noted below, the Company performed an interim impairment test in the first quarter of 2018 for the NeuroNexus asset group, which was disposed of effective December 31, 2018, and determined the undiscounted cash flows exceeded the carrying amounts of long-lived assets. Goodwill Valuation – The Company tests its goodwill balances for impairment as of December 31 of each year, or more frequently if certain indicators are present or changes in circumstances suggest that impairment may exist. When evaluating goodwill for impairment, the Company compares the fair value of a reporting unit with its carrying amount. The Company recognizes an impairment charge for the amount by which the carrying amount of a reporting unit, including goodwill, exceeds its fair value; however, the loss recognized would not exceed the total amount of goodwill allocated to the reporting unit. The Company first assesses qualitative factors to determine whether it is necessary to perform the quantitative goodwill impairment test. If determined to be necessary, the quantitative impairment test is used to identify goodwill impairment and measure the amount of the goodwill impairment to be recognized, if any. In addition, the Company also performs impairment tests of its other long-lived assets in accordance with ASC 360 - 10, Impairment and Disposal of Long-Lived Assets , when indicators of impairment exist. The Company did not identify any indicators of impairment that required an impairment test in either the first or second quarter of 2019 for Nuvectra, its one remaining reporting unit following the divestiture of NeuroNexus effective December 31, 2018. Previously, the Company completed its annual impairment assessment of goodwill for the Nuvectra reporting unit as of December 31, 2018, and the Company determined that it was more likely than not that the fair value of the reporting unit exceeded its carrying value as of such time. On December 31, 2018, the Company determined that the fair value of its NeuroNexus reporting unit, based on the sale price in the divestiture of NeuroNexus, effective December 31, 2018, was less than the recorded carrying value of NeuroNexus. Consequently, the Company recorded an impairment charge pertaining to NeuroNexus of approximately $1.3 million and subsequently disposed of the remaining goodwill balance of approximately $3.4 million. Previously, in the first quarter of 2018, the Company evaluated strategic alternatives with respect to NeuroNexus, which triggered an interim impairment test. Upon completing the goodwill impairment test for NeuroNexus, the Company determined that its fair value exceeded its carrying value. The Company did not identify any indicators of impairment that required an impairment test in the second quarter of 2018 for NeuroNexus. Warranty Reserve – The Company offers a warranty on certain of its products and maintains a warranty reserve, as a component of other current liabilities, for any potential claims. The Company estimates its warranty reserve based upon an analysis of all identified or expected claims and an estimate of the cost to resolve those claims. Factors that affect the Company’s warranty liability include the number of units sold, historical and anticipated rates of warranty claims, and differences between actual and expected warranty costs per claim. The Company periodically assesses the adequacy of its warranty liability and adjusts the amount as necessary. Subsequent Events – The Company considers events or transactions that occur after the balance sheet date, but prior to the issuance of the financial statements, to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. On July 16, 2019, the Company entered into a Sixth Amendment to its Loan and Security Agreement, dated as of March 18, 2016, as amended, with Oxford Finance LLC and Silicon Valley Bank to remove Algostim and PelviStim as borrowers under the loan agreement. Algostim and PelviStim were non-operating wholly-owned subsidiaries of the Company, and the entities ceased to exist upon their merger with and into the Company on July 2, 2019. |
Note 2 - Discontinued Operation
Note 2 - Discontinued Operations | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 2. Discontinued Operations Effective December 31, 2018, $5.0 $0.8 $0.4 $0.5 $0.3 December 31, 2018. For disposal transactions, the disposal of a component of an entity is reported in discontinued operations if the disposition represents a strategic shift that has (or will have) a major effect on the entity's operations and financial results. The Company evaluated the quantitative and qualitative factors related to the sale of NeuroNexus and concluded that it met the requirements for discontinued operations presentation as of December 31, 2018. Income from discontinued operations, net of income taxes, were as follows (in thousands): Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Sales $ 1,246 $ 2,283 Cost of sales 435 823 Gross profit 811 1,460 Operating expenses: Selling, general and administrative expenses 262 484 Research, development and engineering costs, net 290 709 Total operating expenses 552 1,193 Income from discontinued operations before taxes 259 267 Provision for income taxes 54 57 Income from discontinued operations $ 205 $ 210 Six Months Ended June 30, 2018 Cash flows from operating activities: Income from discontinued operations $ 210 Adjustments to reconcile income to net cash provided by operating activities: Depreciation and amortization 181 Stock-based compensation 44 Changes in operating assets and liabilities: Trade accounts receivable (141 ) Prepaid expenses and other current assets (29 ) Accounts payable and other current liabilities (110 ) Accrued compensation 169 Net cash provided by operating activities 324 Cash flows from investing activities: Acquisition of property, plant and equipment (24 ) Net cash used in investing activities $ (24 ) |
Note 3 - Revenue From Contracts
Note 3 - Revenue From Contracts With Customers | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 3. REVENUE FROM CONTRACTS WITH CUSTOMERS The Company adopted ASC 606, Revenue From Contracts With Customers 606” January 1, 2018 not 606 not 2018 606 606 606, five 1 Identify the contract(s) with a customer 2 Identify the performance obligations in the contract - third not 3 Determine the transaction price - not 4 Allocate the transaction price to the performance obligations in the contract - not 5 Recognize revenue when (or as) the Company satisfies a performance obligation - Disaggregated Revenue - Revenue Streams & Timing of Revenue Recognition The Company’s revenue streams currently include product sales of its Algovita system and development and engineering service revenue, and prior to 2019, 11 2 Product Sales The contracts under which the Company realizes revenues from product sales may one $23.3 six June 30, 2019. Algovita not no Revenue from discontinued operations of neural interface systems and components Shipping and handling costs Warranty not Significant judgments may not Development and Engineering Service Revenue The Company’s development services are typically provided on a fixed-fee basis. Service revenue is recognized over time as the services are performed using an input method, on a cost-to-cost basis. In 2019 2018, one not $0.1 first six 2019. not Significant judgments may not The Company’s service revenue is recognized over time using an input method based on costs incurred. As such, estimating the total costs to be incurred and progress to completion on the contract requires significant judgment. Management uses historical experience, project plans and an assessment of the risks and uncertainties inherent in the arrangements to establish these estimates. Various uncertainties may may not Transaction Price Allocated to Future Performance Obligations ASC 606 not one not June 30, 2019, $0.5 6 Contract Balances Timing of revenue recognition may not. 30 Revenue recognized during the first six 2019 $0.1 no first six 2019 first six 2019, no Costs to Obtain and Fulfill a Contract The Company has elected to apply the practical expedient and recognize the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one one June 30, 2019 December 31, 2018, one Certain NeuroNexus contracts may no June 30, 2019 December 31, 2018. |
Note 4 - Accrued Liabilities
Note 4 - Accrued Liabilities | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 4. Accrued Liabilities Accrued liabilities consisted of the following (in thousands): At June 30, 2019 December 3 1 , 201 8 Inventory purchases $ 2,137 $ 2,030 Leases 579 — Warranty reserve 402 431 Interest 362 364 Research and development 298 651 Regulatory, clinical and quality 285 493 Sales and marketing 130 313 Taxes 122 222 Deferred revenue 89 107 Legal 76 258 Information technology system implementations - 36 Accrued other 517 831 Total accrued liabilities $ 4,997 $ 5,736 |
Note 5 - Employee Benefit Plans
Note 5 - Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | 5. EMPLOYEE BENEFIT PLANS Nuvectra Corporation 2016 2016 “2016 may may 2016 2016 2,682,197 June 30, 2019. During the six June 30, 2019, 1,027,327 2016 2016 three six June 30, 2019 $1.1 $2.2 During the six June 30, 2018, 275,712 2016 2016 three six June 30, 2018 $0.7 $1.2 The components and classification of stock-based compensation expense were as follows (in thousands): Three Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Stock options $ 564 $ 295 $ 1,052 $ 501 Restricted stock and restricted stock units 558 408 1,196 753 Total stock-based compensation expense 1,122 703 2,248 1,254 Less: Discontinued operations - 22 - 44 Stock-based compensation expense – continuing operations $ 1,122 $ 681 $ 2,248 $ 1,210 Three Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Selling, general and administrative expenses $ 905 $ 588 $ 1,829 $ 1,061 Research, development and engineering costs, net 217 93 419 149 Discontinued operations - 22 - 44 Total stock-based compensation expense $ 1,122 $ 703 $ 2,248 $ 1,254 The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing model with weighted-average assumptions based on the grant date. The weighted average fair value and assumptions used to value options granted under the 2016 Three Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Weighted average fair value $ 2.34 $ 8.33 $ 7.67 $ 8.02 Risk-free interest rate 1.95 % 2.63 % 2.44 % 2.63 % Expected volatility 70 % 65 % 65 % 65 % Holding period (in years) 6 6 6 6 Expected dividend yield — % — % — % — % The following table summarizes the stock option activity during the first six 2019: Number of Time-Vested Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2018 910,862 $ 8.76 Granted 665,242 12.69 Exercised (50,115 ) 6.34 Forfeited or expired (172,916 ) 11.34 Outstanding at June 30, 2019 1,353,073 $ 10.45 6.94 $ 25 Exercisable at June 30, 2019 633,486 $ 7.46 4.13 $ 25 The Company received proceeds totaling approximately $0.3 50,115 20,590 first six 2019. The following table summarizes the restricted stock and restricted stock unit activity during the first six 2019: Time-Vested Activity Weighted Average Fair Value Non-vested at December 31, 2018 266,247 $ 11.78 Granted 362,085 12.63 Vested (125,449 ) 10.71 Forfeited (92,952 ) 11.13 Non-vested at June 30, 2019 409,931 $ 13.58 Nuvectra Bonus Plan three June 30, 2019 $0.2 no six June 30, 2019. three six June 30, 2018 $0.7 $1.0 Defined Contribution Plans 401 1986, 401 401 six June 30, 2019 2018 25% 6% $0.1 $0.2 three six June 30, 2019, $0.1 $0.2 three six June 30, 2018, |
Note 6 - Debt
Note 6 - Debt | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 6 . DEBT Long-term debt is comprised of the following (in thousands): At June 30, 2019 December 31, 2018 Term loan $ 48,488 $ 48,488 Deferred financing fees (690 ) (787 ) Discount on debt (3,125 ) (3,619 ) Total debt 44,673 44,082 Less current portion of long-term debt 4,500 — Total long-term debt $ 40,173 $ 44,082 Credit Facility March 2016 February 2017, February 2018, December 2018, February 2019, April 2019 July 2019 ( $45 $27.5 $12.5 $5 In connection with the February 2018 $40 $27.5 $0.8 February 2018 $1.3 2% February 2020 1% On December 31, 2018, $0.03 December 2018 On April 22, 2019, On July 16, 2019, July 2, 2019. The term loans bear interest at a floating rate equal to the prime rate plus 4.15%, 8.65%. June 30, 2019 9.65%. March 2020, 30 September 1, 2022, 7.75% The term loans are secured by a first one The Credit Facility contains customary representations and warranties, reporting and other covenants for credit facilities of this kind including prohibitions on the payment of cash dividends on the Company’s capital stock and restrictions on mergers, sales of assets, investments, incurrence of liens, incurrence of indebtedness and transactions with affiliates. The Company is subject to a quarterly financial covenant requiring the Company to achieve specified minimum consolidated product revenues. As of June 30, 2019, Warrants March 18, 2016, $15 two 56,533 113,066 $5.97 March 18, 2026. $1.5 $0.2 On September 28, 2017, $12.5 two 22,844 45,688 $12.31 September 28, 2027. February 2017 $0.04 $0.4 As a condition to the lenders’ funding the new Term Loan B commitment under the February 2018 two 30,245 60,490 $9.30 February 18, 2028. $0.5 first 2018, As a condition to the lenders’ funding the new Term Loan C commitment on September 28, 2018 $5 two 5,119 10,238 $21.98 September 28, 2028. $0.2 third 2018, Deferred Financing Fees – At December 31, 2018 $ 787 Additions during the period 11 Amortization during the period (108 ) At June 30, 2019 $ 690 In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2015 03, 835 30 |
Note 7 - Income Taxes
Note 7 - Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 7. INCOME TAXES The income tax provision for interim periods is determined using an estimate of the annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, the estimate of the annual effective tax rate is updated, and if the estimated effective tax rate changes, a cumulative adjustment is made. There is a potential for volatility of the effective tax rate due to several factors, including changes in the mix of the pre-tax income and the jurisdictions to which it relates, changes in tax laws, business reorganizations and settlements with taxing authorities. The Company records a valuation allowance when it is “more likely than not” not |
Note 8 - Commitments and Contin
Note 8 - Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 8 . COMMITMENTS AND CONTINGENCIES Litigation – not no not Purchase Commitments 2019 June 30, 2019, no 2019 $0.8 Leases 13 The components of lease expense and supplemental cash flow information related to leases for the period are as follows (in thousands): Three Months Ended June 30 , 2019 Six Months Ended June 30 , 2019 Lease Cost Operating lease cost $ 150 $ 301 Total lease cost $ 150 $ 301 Other Information Cash paid for amounts included in the measurement of lease liabilities $ 178 $ 354 Operating cash flows from operating leases $ 107 $ 211 Weighted average remaining lease term – operating leases (in years) 3.4 3.4 Average discount rate – operating leases 8.34 % 8.34 % The supplemental balance sheet information related to leases for the period is as follows (in thousands): At June 30 , 2019 Operating leases Short-term right-of-use assets, included in Prepaid expenses and other current assets on the Condensed Consolidated Balance Sheets $ 456 Long-term right-of-use assets, included in Other long-term assets on the Condensed Consolidated Balance Sheets 1,166 Total operating lease right-of-use assets $ 1,622 Short-term operating lease liabilities, included in Accrued liabilities on the Condensed Consolidated Balance Sheets $ 579 Long-term operating lease liabilities, included in Other long-term liabilities on the Condensed Consolidated Balance Sheets 1,466 Total operating lease liabilities $ 2,045 Maturities of the Company’s lease liabilities are as follows (in thousands): Year Ending Operating Leases 2019 (remaining 6 months) $ 361 2020 727 2021 629 2022 542 2023 81 2024 - Thereafter - Total lease payments 2,340 Less: Imputed interest/present value discount 295 Present value of lease liabilities $ 2,045 |
Note 9 - Earnings (Loss) Per Sh
Note 9 - Earnings (Loss) Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 9. EARNINGS (LOSS) PER SHARE Basic net loss per share is calculated by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted net loss per share is equal to basic net loss per share, as the Company had no Three Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 201 8 Basic net loss per share: Loss from continuing operations $ (11,146 ) $ (11,983 ) $ (25,916 ) $ (22,521 ) Income from discontinued operations - 205 - 210 Net loss $ (11,146 ) $ (11,778 ) $ (25,916 ) $ (22,311 ) Weighted average common shares outstanding 17,848 14,209 17,794 10,922 Loss from continuing operations $ (0.62 ) $ (0.84 ) $ (1.46 ) $ (2.06 ) Income from discontinued operations — 0.01 — 0.02 Basic net loss per share $ (0.62 ) $ (0.83 ) $ (1.46 ) $ (2.04 ) Diluted net loss per share: Loss from continuing operations $ (11,146 ) $ (11,983 ) $ (25,916 ) $ (22,521 ) Income from discontinued operations — 205 — 210 Net loss $ (11,146 ) $ (11,778 ) $ (25,916 ) $ (22,311 ) Weighted average common shares outstanding 17,848 14,209 17,794 10,922 Dilutive stock options, restricted stock and restricted stock units — — — — Weighted average common shares outstanding – assuming dilution 17,848 14,209 17,794 10,922 Loss from continuing operations $ (0.62 ) $ (0.84 ) $ (1.46 ) $ (2.06 ) Income from discontinued operations - 0.01 - 0.02 Diluted net loss per share $ (0.62 ) $ (0.83 ) $ (1.46 ) $ (2.04 ) Outstanding securities and warrants that were not included in the diluted calculation because their effect would be anti-dilutive 1,879 1,518 1,879 1,518 |
Note 10 - Fair Value Measuremen
Note 10 - Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 1 0 . FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e . three Level 1 1 not Level 2 not Level 3 3 The carrying amounts of cash, accounts receivable, accounts payable, and accrued expenses approximate fair value because of the short-term nature of these items. As of June 30, 2019, 2 Assets and Liabilities Measured at Fair Value on a Recurring Basis Fair value measurement standards apply to certain financial assets and liabilities that are measured at fair value on a recurring basis (each reporting period). The Company categorizes its warrants measured at fair value on a recurring basis in Level 3 The Company’s investments in marketable securities primarily consist of investments in debt securities, which are classified as Cash and Cash Equivalents on the consolidated balance sheet because of their original maturities of three The fair values of marketable securities were estimated using the market approach using prices and other relevant information generated by market transactions involving identical or comparable assets. The Company uses quoted market prices in active markets or quoted market prices in markets that are not June 30, 2019, $62.2 three Marketable securities, measured at fair value, by level within the fair value hierarchy were as follows (in thousands): June 30, 2019 Fair Value Hierarchy Cost Unrealized Gain Fair Value Cash Level 1 $ 37,354 $ - $ 37,354 Government Level 1 2,798 1 2,799 Financial Level 2 7,849 - 7,849 Industrial Level 2 14,174 1 14,175 Total $ 62,175 $ 2 $ 62,177 December 31, 2018 Fair Value Hierarchy Cost Unrealized Gain Fair Value Cash Level 1 $ 46,877 $ — $ 46,877 Government Level 1 13,490 1 13,491 Financial Level 2 13,677 — 13,677 Industrial Level 2 14,247 — 14,247 Total $ 88,291 $ 1 $ 88,292 Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Fair value standards also apply to certain assets and liabilities that are measured at fair value on a nonrecurring basis. A summary of the valuation methodologies for assets and liabilities measured on a nonrecurring basis is as follows: Long-lived Assets 1 first six 2019 2018, no Goodwill not December 31, 1 During the first six 2019, no On December 31, 2018, $1.3 $3.4 Warrants 10 |
Note 11 - Business Segment, Geo
Note 11 - Business Segment, Geographic and Concentration Risk Information | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Segment Reporting, Geographical, and Concentration Risk Disclosure [Text Block] | 1 1 . BUSINESS SEGMENT, GEOGRAPHIC AND CONCENTRATION RISK INFORMATION Effective December 31, 2018, December 31, 2018, one one Nuvectra is a neurostimulation company committed to helping physicians improve the lives of people with chronic conditions. Algovita is the Company’s first second first Prior to its divestiture, NeuroNexus designed, manufactured and marketed neural-interface technologies for the neuroscience clinical research market. Revenues included sales of neural interface technology, components and systems to the neuroscience and clinical markets. Refer to Note 2 An analysis and reconciliation of the Company’s product lines to the respective information in the condensed consolidated financial statements follows (in thousands): Three Months Ended Six Months Ended Product line sales: June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Algovita $ 12,289 $ 11,509 $ 23,332 $ 20,590 Development and engineering service 56 394 138 850 Total sales $ 12,345 $ 11,903 $ 23,470 $ 21,440 All of the Company’s long-lived tangible assets are located in the United States. |
Note 12 - Related Party Transac
Note 12 - Related Party Transactions | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 1 2 . related party transactions On March 14, 2016, no Supply Agreement |
Note 13 - Recently Issued Accou
Note 13 - Recently Issued Accounting Standards | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | 1 3 . RECENTLY ISSUED ACCOUNTING STANDARDS In the normal course of business, management evaluates all new accounting pronouncements issued by the FASB to determine the potential impact they may not not Recently Adopted in 201 9 The Company adopted ASC Topic 842, Leases January 1, 2019 not 840, Leases Under ASC Topic 842, Upon adoption, the Company recognized right-of-use assets and lease liabilities for operating leases in the amount of $1.8 $2.3 The Company enters into contracts to lease real estate and information technology equipment. The Company’s most significant lease liabilities relate to real estate leases that have initial contract lease terms ranging from 5 8 not 840. 842, not not Operating leases result in a straight-line lease expense, while finance leases result in a front-loaded expense pattern. The Company has no not not third not ASC Topic 842 not The Company has made an accounting policy election not 12 not ASC Topic 842 not June 30, 2019 no June 30, 2019 360 10. Certain of the Company’s leases include variable lease costs to reimburse the lessor for real estate tax and insurance expenses, and certain non-lease components that transfer a distinct service to the Company, such as common area maintenance services. The Company has elected to separate the accounting for lease components and non-lease components, for real estate leases. Please see Note 8 Not In August 2018, 2018 15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350 40 2018 15 December 15, 2019, In August 2018, 2018 13, Fair Value Measurement (Topic 820 2018 13 first 2020, In June 2016, 2016 13, Financial Instruments - Credit Losses (Topic 326 2016 13 2016 13 December 15, 2019, December 15, 2018. May 2019, 2019 05, Financial Instruments - Credit Losses (Topic 326 ): Targeted Transition Relief. 2019 05 2016 13 2016 13, 1 2 326 20, 3 825 10, 4 not |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Nature of Operations [Policy Text Block] | Nature of Operations first On January 2, 2019, December 31, 2018. 2 2 On July 2, 2019, June 30, 2019, not not no |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation 270, Interim Reporting 10 10 X. not not may 10 December 31, 2018. |
Liquidity and Capital Resources [Policy Text Block] | Liquidity and Capital Resources Based on its current plans and expectations, the Company estimates that its cash on hand, which includes proceeds from the Company’s follow-on common stock offerings completed in the first third 2018, twelve The Company periodically evaluates its liquidity requirements, alternative uses of capital, capital needs and available resources. As a result of this process, the Company has in the past sought, and may not may may no |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Credit Risk No 10% six June 30, 2019 2018. No 10% June 30, 2019 December 31, 2018. may 11 |
Inventory, Policy [Policy Text Block] | Inventories first first not Write-downs of excess and obsolete inventories were $0.1 $0.2 second 2019 2018, may |
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block] | Impairment of Long-Lived Assets may not not, not 50 Potential recoverability is measured by comparing the carrying amount of the asset or asset group to its related total future undiscounted cash flows. The projected cash flows for each asset or asset group considers multiple factors, including current revenue from existing customers, proceeds from the sale of the asset or asset group and expected profit margins giving consideration to historical and expected margins. If the carrying value is not no The Company did not first six 2019 2018; first 2018 December 31, 2018, |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill Valuation December 31 may not first 360 10, Impairment and Disposal of Long-Lived Assets The Company did not first second 2019 one December 31, 2018. Previously, the Company completed its annual impairment assessment of goodwill for the Nuvectra reporting unit as of December 31, 2018, not On December 31, 2018, December 31, 2018, $1.3 $3.4 Previously, in the first 2018, not second 2018 |
Standard Product Warranty, Policy [Policy Text Block] | Warranty Reserve |
Subsequent Events, Policy [Policy Text Block] | Subsequent Events On July 16, 2019, March 18, 2016, July 2, 2019. |
Note 2 - Discontinued Operati_2
Note 2 - Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Sales $ 1,246 $ 2,283 Cost of sales 435 823 Gross profit 811 1,460 Operating expenses: Selling, general and administrative expenses 262 484 Research, development and engineering costs, net 290 709 Total operating expenses 552 1,193 Income from discontinued operations before taxes 259 267 Provision for income taxes 54 57 Income from discontinued operations $ 205 $ 210 Six Months Ended June 30, 2018 Cash flows from operating activities: Income from discontinued operations $ 210 Adjustments to reconcile income to net cash provided by operating activities: Depreciation and amortization 181 Stock-based compensation 44 Changes in operating assets and liabilities: Trade accounts receivable (141 ) Prepaid expenses and other current assets (29 ) Accounts payable and other current liabilities (110 ) Accrued compensation 169 Net cash provided by operating activities 324 Cash flows from investing activities: Acquisition of property, plant and equipment (24 ) Net cash used in investing activities $ (24 ) |
Note 4 - Accrued Liabilities (T
Note 4 - Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | At June 30, 2019 December 3 1 , 201 8 Inventory purchases $ 2,137 $ 2,030 Leases 579 — Warranty reserve 402 431 Interest 362 364 Research and development 298 651 Regulatory, clinical and quality 285 493 Sales and marketing 130 313 Taxes 122 222 Deferred revenue 89 107 Legal 76 258 Information technology system implementations - 36 Accrued other 517 831 Total accrued liabilities $ 4,997 $ 5,736 |
Note 5 - Employee Benefit Pla_2
Note 5 - Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Share-based Payment Arrangement, Cost by Plan [Table Text Block] | Three Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Stock options $ 564 $ 295 $ 1,052 $ 501 Restricted stock and restricted stock units 558 408 1,196 753 Total stock-based compensation expense 1,122 703 2,248 1,254 Less: Discontinued operations - 22 - 44 Stock-based compensation expense – continuing operations $ 1,122 $ 681 $ 2,248 $ 1,210 Three Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Selling, general and administrative expenses $ 905 $ 588 $ 1,829 $ 1,061 Research, development and engineering costs, net 217 93 419 149 Discontinued operations - 22 - 44 Total stock-based compensation expense $ 1,122 $ 703 $ 2,248 $ 1,254 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Three Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Weighted average fair value $ 2.34 $ 8.33 $ 7.67 $ 8.02 Risk-free interest rate 1.95 % 2.63 % 2.44 % 2.63 % Expected volatility 70 % 65 % 65 % 65 % Holding period (in years) 6 6 6 6 Expected dividend yield — % — % — % — % |
Restricted Stock and RSU's [Member] | |
Notes Tables | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | Time-Vested Activity Weighted Average Fair Value Non-vested at December 31, 2018 266,247 $ 11.78 Granted 362,085 12.63 Vested (125,449 ) 10.71 Forfeited (92,952 ) 11.13 Non-vested at June 30, 2019 409,931 $ 13.58 |
Share-based Payment Arrangement, Option [Member] | |
Notes Tables | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | Number of Time-Vested Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2018 910,862 $ 8.76 Granted 665,242 12.69 Exercised (50,115 ) 6.34 Forfeited or expired (172,916 ) 11.34 Outstanding at June 30, 2019 1,353,073 $ 10.45 6.94 $ 25 Exercisable at June 30, 2019 633,486 $ 7.46 4.13 $ 25 |
Note 6 - Debt (Tables)
Note 6 - Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | At June 30, 2019 December 31, 2018 Term loan $ 48,488 $ 48,488 Deferred financing fees (690 ) (787 ) Discount on debt (3,125 ) (3,619 ) Total debt 44,673 44,082 Less current portion of long-term debt 4,500 — Total long-term debt $ 40,173 $ 44,082 |
Schedule of Debt Issuance Costs [Table Text Block] | <table border="0" cellpadding="0" cellspacing="0" style="margin-right: 10%; margin-left: 36pt; font-size: 10pt; font-family: "Times New Roman", Times, serif; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; width: 83%;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">At December 31, 2018</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 14%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">787</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Additions during the period</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 14%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Amortization during the period</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 14%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(108</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> </tr> <tr style="background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 14%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">At June 30, 2019</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 14%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">690</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> </tr> </table></div>" id="sjs-B5"><div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="margin-right: 10%; margin-left: 36pt; font-size: 10pt; font-family: "Times New Roman", Times, serif; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; width: 83%;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">At December 31, 2018</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 14%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">787</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Additions during the period</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 14%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Amortization during the period</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 14%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(108</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> </tr> <tr style="background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 14%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">At June 30, 2019</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 14%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">690</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> </tr> </table></div> |
Note 8 - Commitments and Cont_2
Note 8 - Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Operating Lease, Lease Cost and Supplemental Cash Flow Information [Table Text Block] | Three Months Ended June 30 , 2019 Six Months Ended June 30 , 2019 Lease Cost Operating lease cost $ 150 $ 301 Total lease cost $ 150 $ 301 Other Information Cash paid for amounts included in the measurement of lease liabilities $ 178 $ 354 Operating cash flows from operating leases $ 107 $ 211 Weighted average remaining lease term – operating leases (in years) 3.4 3.4 Average discount rate – operating leases 8.34 % 8.34 % |
Operating Lease, Supplemental Balance Sheet Information [Table Text Block] | At June 30 , 2019 Operating leases Short-term right-of-use assets, included in Prepaid expenses and other current assets on the Condensed Consolidated Balance Sheets $ 456 Long-term right-of-use assets, included in Other long-term assets on the Condensed Consolidated Balance Sheets 1,166 Total operating lease right-of-use assets $ 1,622 Short-term operating lease liabilities, included in Accrued liabilities on the Condensed Consolidated Balance Sheets $ 579 Long-term operating lease liabilities, included in Other long-term liabilities on the Condensed Consolidated Balance Sheets 1,466 Total operating lease liabilities $ 2,045 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Year Ending Operating Leases 2019 (remaining 6 months) $ 361 2020 727 2021 629 2022 542 2023 81 2024 - Thereafter - Total lease payments 2,340 Less: Imputed interest/present value discount 295 Present value of lease liabilities $ 2,045 |
Note 9 - Earnings (Loss) Per _2
Note 9 - Earnings (Loss) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 201 8 Basic net loss per share: Loss from continuing operations $ (11,146 ) $ (11,983 ) $ (25,916 ) $ (22,521 ) Income from discontinued operations - 205 - 210 Net loss $ (11,146 ) $ (11,778 ) $ (25,916 ) $ (22,311 ) Weighted average common shares outstanding 17,848 14,209 17,794 10,922 Loss from continuing operations $ (0.62 ) $ (0.84 ) $ (1.46 ) $ (2.06 ) Income from discontinued operations — 0.01 — 0.02 Basic net loss per share $ (0.62 ) $ (0.83 ) $ (1.46 ) $ (2.04 ) Diluted net loss per share: Loss from continuing operations $ (11,146 ) $ (11,983 ) $ (25,916 ) $ (22,521 ) Income from discontinued operations — 205 — 210 Net loss $ (11,146 ) $ (11,778 ) $ (25,916 ) $ (22,311 ) Weighted average common shares outstanding 17,848 14,209 17,794 10,922 Dilutive stock options, restricted stock and restricted stock units — — — — Weighted average common shares outstanding – assuming dilution 17,848 14,209 17,794 10,922 Loss from continuing operations $ (0.62 ) $ (0.84 ) $ (1.46 ) $ (2.06 ) Income from discontinued operations - 0.01 - 0.02 Diluted net loss per share $ (0.62 ) $ (0.83 ) $ (1.46 ) $ (2.04 ) Outstanding securities and warrants that were not included in the diluted calculation because their effect would be anti-dilutive 1,879 1,518 1,879 1,518 |
Note 10 - Fair Value Measurem_2
Note 10 - Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | June 30, 2019 Fair Value Hierarchy Cost Unrealized Gain Fair Value Cash Level 1 $ 37,354 $ - $ 37,354 Government Level 1 2,798 1 2,799 Financial Level 2 7,849 - 7,849 Industrial Level 2 14,174 1 14,175 Total $ 62,175 $ 2 $ 62,177 December 31, 2018 Fair Value Hierarchy Cost Unrealized Gain Fair Value Cash Level 1 $ 46,877 $ — $ 46,877 Government Level 1 13,490 1 13,491 Financial Level 2 13,677 — 13,677 Industrial Level 2 14,247 — 14,247 Total $ 88,291 $ 1 $ 88,292 |
Note 11 - Business Segment, G_2
Note 11 - Business Segment, Geographic and Concentration Risk Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Revenue from External Customers by Products and Services [Table Text Block] | Three Months Ended Six Months Ended Product line sales: June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Algovita $ 12,289 $ 11,509 $ 23,332 $ 20,590 Development and engineering service 56 394 138 850 Total sales $ 12,345 $ 11,903 $ 23,470 $ 21,440 |
Note 1 - Summary of Significa_2
Note 1 - Summary of Significant Accounting Policies (Details Textual) xbrli-pure in Thousands, $ in Thousands | Dec. 31, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) |
Inventory Write-down | $ 100 | $ 200 | $ 92 | $ 335 | ||
Asset Impairment Charges, Total | 0 | $ 0 | ||||
Goodwill, Impairment Loss | $ 0 | |||||
NeuroNexus [Member] | ||||||
Goodwill, Impairment Loss | $ 1,300 | |||||
Disposal Group, Including Discontinued Operation, Goodwill | $ 3,400 | $ 3,400 | ||||
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | ||||||
Number of Major Customers | 0 | 0 | ||||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||||||
Number of Major Customers | 0 | 0 |
Note 2 - Discontinued Operati_3
Note 2 - Discontinued Operations (Details Textual) - NeuroNexus [Member] $ in Millions | Dec. 31, 2018USD ($) |
Proceeds from Divestiture of Businesses | $ 5 |
Disposal Group, Including Discontinued Operation, Distribution Received | 0.8 |
Disposal Group, Including Discontinued Operation, Cash Contributed | 0.4 |
Disposal Group, Including Discontinued Operation, Liabilities, Current, Total | 0.5 |
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax, Total | $ 0.3 |
Note 2 - Discontinued Operati_4
Note 2 - Discontinued Operations - Schedule of Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income from discontinued operations before taxes | $ 259 | $ 267 | ||
Provision for income taxes | 54 | 57 | ||
Income from discontinued operations | 205 | 210 | ||
NeuroNexus [Member] | Discontinued Operations, Disposed of by Sale [Member] | ||||
Sales | 1,246 | 2,283 | ||
Cost of sales | 435 | 823 | ||
Gross profit | 811 | 1,460 | ||
Selling, general and administrative expenses | 262 | 484 | ||
Research, development and engineering costs, net | 290 | 709 | ||
Total operating expenses | 552 | 1,193 | ||
Income from discontinued operations before taxes | 259 | 267 | ||
Provision for income taxes | 54 | 57 | ||
Income from discontinued operations | $ 205 | 210 | ||
Depreciation and amortization | 181 | |||
Stock-based compensation | 44 | |||
Trade accounts receivable | (141) | |||
Prepaid expenses and other current assets | (29) | |||
Accounts payable and other current liabilities | (110) | |||
Accrued compensation | 169 | |||
Net cash provided by operating activities | 324 | |||
Acquisition of property, plant and equipment | (24) | |||
Net cash used in investing activities | $ (24) |
Note 3 - Revenue From Contrac_2
Note 3 - Revenue From Contracts With Customers 1 (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Revenue from Contract with Customer, Including Assessed Tax | $ 12,345 | $ 11,903 | $ 23,470 | $ 21,440 | ||
Revenue, Remaining Performance Obligation, Optional Exemption, Remaining Duration | 1 year | 1 year | ||||
Contract with Customer, Performance Obligation Satisfied in Previous Period | $ 0 | |||||
Contract with Customer, Asset, Reclassified to Receivable | $ 0 | |||||
Capitalized Contract Cost, Net, Total | $ 0 | 0 | $ 0 | |||
Product [Member] | ||||||
Revenue from Contract with Customer, Including Assessed Tax | 12,289 | 11,509 | 23,332 | 20,590 | ||
Contract with Customer, Liability, Revenue Recognized | 100 | |||||
Service [Member] | ||||||
Revenue from Contract with Customer, Including Assessed Tax | $ 56 | $ 394 | $ 138 | $ 850 |
Note 3 - Revenue From Contrac_3
Note 3 - Revenue From Contracts With Customers 2 (Details Textual) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01 $ in Thousands | Jun. 30, 2019USD ($) |
Revenue, Remaining Performance Obligation, Amount | $ 500 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 180 days |
Note 4 - Accrued Liabilities -
Note 4 - Accrued Liabilities - Accrued Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Inventory purchases | $ 2,137 | $ 2,030 |
Leases | 579 | |
Warranty reserve | 402 | 431 |
Interest | 362 | 364 |
Research and development | 298 | 651 |
Regulatory, clinical and quality | 285 | 493 |
Sales and marketing | 130 | 313 |
Taxes | 122 | 222 |
Deferred revenue | 89 | 107 |
Legal | 76 | 258 |
Information technology system implementations | 36 | |
Accrued other | 517 | 831 |
Total accrued liabilities | $ 4,997 | $ 5,736 |
Note 5 - Employee Benefit Pla_3
Note 5 - Employee Benefit Plans (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Proceeds From Stock Options and Warrants Exercised | $ 318 | $ 231 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 50,115 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Warrants, Exercises in Period | 20,590 | |||
401K Plan [Member] | ||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 25.00% | |||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 6.00% | |||
Defined Contribution Plan, Cost | $ 100 | $ 100 | $ 200 | $ 200 |
Bonus Plan [Member] | ||||
Deferred Compensation Arrangement with Individual, Compensation Expense Adjustment | $ 200 | |||
Deferred Compensation Arrangement with Individual, Compensation Expense | 700 | $ 0 | 1,000 | |
Nuvectra Corporation 2016 Equity Incentive Plan [Member] | ||||
Common Stock, Capital Shares Reserved for Future Issuance | 2,682,197 | 2,682,197 | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount, Total | $ 1,100 | $ 700 | $ 2,200 | $ 1,200 |
Nuvectra Corporation 2016 Equity Incentive Plan [Member] | Restricted Stock and Non-Qualified Stock Options [Member] | Directors, Certain Officers and Key Employees [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options and Options, Grants in Period | 1,027,327 | 275,712 |
Note 5 - Employee Benefit Pla_4
Note 5 - Employee Benefit Plans - Allocated Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Allocated share-based compensation expense | $ 1,122 | $ 703 | $ 2,248 | $ 1,254 |
Discontinued Operations [Member] | ||||
Allocated share-based compensation expense | 22 | 44 | ||
Continuing Operations [Member] | ||||
Allocated share-based compensation expense | 1,122 | 681 | 2,248 | 1,210 |
Selling, General and Administrative Expenses [Member] | ||||
Allocated share-based compensation expense | 905 | 588 | 1,829 | 1,061 |
Research and Development Expense [Member] | ||||
Allocated share-based compensation expense | 217 | 93 | 419 | 149 |
Share-based Payment Arrangement, Option [Member] | ||||
Allocated share-based compensation expense | 564 | 295 | 1,052 | 501 |
Restricted Stock and RSU's [Member] | ||||
Allocated share-based compensation expense | $ 558 | $ 408 | $ 1,196 | $ 753 |
Note 5 - Employee Benefit Pla_5
Note 5 - Employee Benefit Plans - Weighted Average Fair Value Assumption Used to Values Options Granted (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Weighted average fair value (in dollars per share) | $ 2.34 | $ 8.33 | $ 7.67 | $ 8.02 |
Risk-free interest rate | 1.95% | 2.63% | 2.44% | 2.63% |
Expected volatility | 70.00% | 65.00% | 65.00% | 65.00% |
Holding period (in years) (Year) | 6 years | 6 years | 6 years | 6 years |
Expected dividend yield |
Note 5 - Employee Benefit Pla_6
Note 5 - Employee Benefit Plans - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Exercised, number of options (in shares) | (50,115) | |
Share-based Payment Arrangement, Option [Member] | ||
Outstanding, number of options (in shares) | 910,862 | |
Outstanding, weighted average exercise price (in dollars per share) | $ 10.45 | $ 8.76 |
Granted, number of options (in shares) | 665,242 | |
Granted, weighted average exercise price (in dollars per share) | $ 12.69 | |
Exercised, number of options (in shares) | (50,115) | |
Exercised, weighted average exercise price (in dollars per share) | $ 6.34 | |
Forfeited or expired, number of options (in shares) | (172,916) | |
Forfeited or expired, weighted average exercise price (in dollars per share) | $ 11.34 | |
Outstanding, number of options (in shares) | 1,353,073 | |
Outstanding, weighted average remaining contractual life (Year) | 6 years 343 days | |
Outstanding, aggregate intrinsic value | $ 25 | |
Exercisable, number of options (in shares) | 633,486 | |
Exercisable, weighted average exercise price (in dollars per share) | $ 7.46 | |
Exercisable, weighted average remaining contractual life (Year) | 4 years 47 days | |
Exercisable, aggregate intrinsic value | $ 25 |
Note 5 - Employee Benefit Pla_7
Note 5 - Employee Benefit Plans - Summary Restricted Stock Unit Activity (Details) - Restricted Stock and RSU's [Member] - $ / shares | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Nonvested (in shares) | 266,247 | |
Nonvested (in dollars per share) | $ 13.58 | $ 11.78 |
Granted (in shares) | 362,085 | |
Granted (in dollars per share) | $ 12.63 | |
Vested (in shares) | (125,449) | |
Vested (in dollars per share) | $ 10.71 | |
Forfeited (in shares) | (92,952) | |
Forfeited (in dollars per share) | $ 11.13 | |
Nonvested (in shares) | 409,931 |
Note 6 - Debt (Details Textual)
Note 6 - Debt (Details Textual) $ / shares in Units, $ in Thousands | Sep. 28, 2018USD ($)$ / sharesshares | Feb. 28, 2018USD ($)$ / sharesshares | Feb. 16, 2018USD ($) | Sep. 28, 2017USD ($)$ / sharesshares | Mar. 18, 2016USD ($)$ / sharesshares | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) |
Proceeds from Issuance of Long-term Debt, Total | $ 11,711 | |||||||
Debt Instrument, Unamortized Discount, Total | 3,125 | $ 3,619 | ||||||
Debt Issuance Costs Incurred During Period | 11 | |||||||
Warrants in Connection with Term Loan A [Member] | Additional Paid-in Capital [Member] | ||||||||
Warrants and Rights Outstanding | $ 200 | |||||||
Warrants in Connection with Term Loan B [Member] | Additional Paid-in Capital [Member] | ||||||||
Warrants and Rights Outstanding | $ 400 | |||||||
Warrants Issued in Connection with Term Loan A and Term Loan B [Member] | Additional Paid-in Capital [Member] | ||||||||
Warrants and Rights Outstanding | $ 500 | |||||||
Warrants in Connection with Term Loan C [Member] | Additional Paid-in Capital [Member] | ||||||||
Warrants and Rights Outstanding | $ 200 | |||||||
Oxford Finance LLC and Silicon Valley Bank [Member] | Warrants in Connection with Term Loan A [Member] | ||||||||
Class of Warrant or Right, Issued During Period | shares | 113,066 | |||||||
Class of Warrant or Right, Issued During Period, Exercise Price | $ / shares | $ 5.97 | |||||||
Oxford Finance LLC and Silicon Valley Bank [Member] | Warrants in Connection with Term Loan B [Member] | ||||||||
Class of Warrant or Right, Issued During Period | shares | 45,688 | |||||||
Class of Warrant or Right, Issued During Period, Exercise Price | $ / shares | $ 12.31 | |||||||
Oxford Finance LLC and Silicon Valley Bank [Member] | Warrants Issued in Connection with Term Loan A and Term Loan B [Member] | ||||||||
Class of Warrant or Right, Issued During Period | shares | 60,490 | |||||||
Class of Warrant or Right, Issued During Period, Exercise Price | $ / shares | $ 9.30 | |||||||
Oxford Finance LLC and Silicon Valley Bank [Member] | Warrants in Connection with Term Loan C [Member] | ||||||||
Class of Warrant or Right, Issued During Period | shares | 10,238 | |||||||
Class of Warrant or Right, Issued During Period, Exercise Price | $ / shares | $ 21.98 | |||||||
Oxford Finance LLC and Silicon Valley Bank [Member] | Term Loan A [Member] | ||||||||
Debt Agreement, Maximum Borrowing Capacity | $ 15,000 | |||||||
Oxford Finance LLC and Silicon Valley Bank [Member] | Term Loan B [Member] | ||||||||
Debt Agreement, Maximum Borrowing Capacity | $ 12,500 | |||||||
Debt Issuance Costs Incurred During Period | $ 40 | |||||||
Oxford Finance LLC and Silicon Valley Bank [Member] | Term Loan C [Member] | ||||||||
Debt Agreement, Maximum Borrowing Capacity | $ 5,000 | |||||||
Oxford Finance LLC [Member] | Warrants in Connection with Term Loan A [Member] | ||||||||
Class of Warrant or Right, Issued During Period | shares | 56,533 | |||||||
Oxford Finance LLC [Member] | Warrants in Connection with Term Loan B [Member] | ||||||||
Class of Warrant or Right, Issued During Period | shares | 22,844 | |||||||
Oxford Finance LLC [Member] | Warrants Issued in Connection with Term Loan A and Term Loan B [Member] | ||||||||
Class of Warrant or Right, Issued During Period | shares | 30,245 | |||||||
Silicon Valley Bank [Member] | Warrants in Connection with Term Loan C [Member] | ||||||||
Class of Warrant or Right, Issued During Period | shares | 5,119 | |||||||
Term Loans [Member] | Oxford Finance LLC and Silicon Valley Bank [Member] | ||||||||
Debt Agreement, Maximum Borrowing Capacity | $ 45,000 | |||||||
Proceeds from Issuance of Long-term Debt, Total | $ 40,000 | |||||||
Repayments of Long-term Debt, Total | 27,500 | |||||||
Loan Amendment Payment | $ 800 | |||||||
Debt Instrument, Unamortized Discount, Total | $ 30 | |||||||
Debt Instrument, Interest Rate Floor | 8.65% | |||||||
Debt Instrument, Interest Rate During Period | 9.65% | |||||||
Debt Instrument, Percentage of Funded Loan Amounts due at Maturity | 7.75% | |||||||
Term Loans [Member] | Oxford Finance LLC and Silicon Valley Bank [Member] | Prime Rate [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 4.15% | |||||||
Term Loans [Member] | Oxford Finance LLC and Silicon Valley Bank [Member] | Prepayment in First Year After Initial Closing [Member] | ||||||||
Debt Instrument, Prepayment Fee, Amount | $ 1,300 | |||||||
Term Loans [Member] | Oxford Finance LLC and Silicon Valley Bank [Member] | Prepayment in Second Year After Initial Closing [Member] | ||||||||
Debt Instrument, Prepayment Fee Percentage | 2.00% | |||||||
Term Loans [Member] | Oxford Finance LLC and Silicon Valley Bank [Member] | Prepayment After Second Year After Initial Closing [Member] | ||||||||
Debt Instrument, Prepayment Fee Percentage | 1.00% | |||||||
Term Loans [Member] | Oxford Finance LLC and Silicon Valley Bank [Member] | If Term Loan B Funded, Beginning April 2020 [Member] | ||||||||
Debt Instrument, Number of Monthly Principal and Interest Payments | 30 | |||||||
Term Loan A [Member] | Oxford Finance LLC and Silicon Valley Bank [Member] | ||||||||
Debt Agreement, Maximum Borrowing Capacity | $ 27,500 | |||||||
Debt Issuance Costs Incurred During Period | $ 1,500 | |||||||
Term Loan B [Member] | Oxford Finance LLC and Silicon Valley Bank [Member] | ||||||||
Debt Agreement, Maximum Borrowing Capacity | 12,500 | |||||||
Term Loan C [Member] | Oxford Finance LLC and Silicon Valley Bank [Member] | ||||||||
Debt Agreement, Maximum Borrowing Capacity | $ 5,000 |
Note 6 - Debt - Long-term Debt
Note 6 - Debt - Long-term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Term loan | $ 48,488 | $ 48,488 |
Deferred financing fees | (690) | (787) |
Discount on debt | (3,125) | (3,619) |
Total debt | 44,673 | 44,082 |
Less current portion of long-term debt | 4,500 | |
Total long-term debt | $ 40,173 | $ 44,082 |
Note 6 - Debt - Deferred Financ
Note 6 - Debt - Deferred Financing Fees (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Deferred financing fees | $ 787 |
Additions during the period | 11 |
Amortization during the period | (108) |
Deferred financing fees | $ 690 |
Note 8 - Commitments and Cont_3
Note 8 - Commitments and Contingencies (Details Textual) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Capital Expenditures Yet to Be Incurred | $ 0.8 |
Note 8 - Commitments and Cont_4
Note 8 - Commitments and Contingencies - Leases Cost and Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | |
Operating lease cost | $ 150 | $ 301 | |
Total lease cost | 150 | 301 | |
Cash paid for amounts included in the measurement of lease liabilities | 178 | 354 | |
Amortization of operating lease right-of-use assets | $ 107 | $ 211 | |
Weighted average remaining lease term – operating leases (in years) (Year) | 3 years 146 days | 3 years 146 days | |
Average discount rate – operating leases | 8.34% | 8.34% |
Note 8 - Commitments and Cont_5
Note 8 - Commitments and Contingencies - Supplemental Balance Sheet Information Related to Leases (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Operating lease right-of-use assets | $ 1,622 |
Present value of lease liabilities | 2,045 |
Prepaid Expenses and Other Current Assets [Member] | |
Operating lease right-of-use assets | 456 |
Other Noncurrent Assets [Member] | |
Operating lease right-of-use assets | 1,166 |
Accounts Payable and Accrued Liabilities [Member] | |
Present value of lease liabilities | 579 |
Other Noncurrent Liabilities [Member] | |
Present value of lease liabilities | $ 1,466 |
Note 8 - Commitments and Cont_6
Note 8 - Commitments and Contingencies - Maturities of Operating Lease Liabilities (Details) $ in Thousands | Jun. 30, 2019USD ($) |
2019 (remaining 6 months) | $ 361 |
2020 | 727 |
2021 | 629 |
2022 | 542 |
2023 | 81 |
2024 | |
Thereafter | |
Total lease payments | 2,340 |
Less: Imputed interest/present value discount | 295 |
Present value of lease liabilities | $ 2,045 |
Note 9 - Earnings (Loss) Per _3
Note 9 - Earnings (Loss) Per Share (Details Textual) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Weighted Average Number Diluted Shares Outstanding Adjustment, Total | 0 | 0 | 0 | 0 |
Note 9 - Earnings (Loss) Per _4
Note 9 - Earnings (Loss) Per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Basic net loss per share: | ||||||
Loss from continuing operations | $ (11,146) | $ (11,983) | $ (25,916) | $ (22,521) | ||
Income from discontinued operations | 205 | 210 | ||||
Net loss | $ (11,146) | $ (14,770) | $ (11,778) | $ (10,533) | $ (25,916) | $ (22,311) |
Weighted average common shares outstanding (in shares) | 17,848 | 14,209 | 17,794 | 10,922 | ||
Loss from continuing operations (in dollars per share) | $ (0.62) | $ (0.84) | $ (1.46) | $ (2.06) | ||
Income from discontinued operations (in dollars per share) | 0.01 | 0.02 | ||||
Basic net loss per share (in dollars per share) | $ (0.62) | $ (0.83) | $ (1.46) | $ (2.04) | ||
Diluted net loss per share: | ||||||
Loss from continuing operations | $ (11,146) | $ (11,983) | $ (25,916) | $ (22,521) | ||
Income from discontinued operations | 205 | 210 | ||||
Net loss | $ (11,146) | $ (14,770) | $ (11,778) | $ (10,533) | $ (25,916) | $ (22,311) |
Weighted average common shares outstanding (in shares) | 17,848 | 14,209 | 17,794 | 10,922 | ||
Dilutive stock options, restricted stock and restricted stock units (in shares) | ||||||
Weighted average common shares outstanding – assuming dilution (in shares) | 17,848 | 14,209 | 17,794 | 10,922 | ||
Loss from continuing operations (in dollars per share) | $ (0.62) | $ (0.84) | $ (1.46) | $ (2.06) | ||
Income from discontinued operations (in dollars per share) | 0.01 | 0.02 | ||||
Diluted net loss per share (in dollars per share) | $ (0.62) | $ (0.83) | $ (1.46) | $ (2.04) | ||
Outstanding securities and warrants that were not included in the diluted calculation because their effect would be anti-dilutive (in shares) | 1,879 | 1,518 | 1,879 | 1,518 |
Note 10 - Fair Value Measurem_3
Note 10 - Fair Value Measurements (Details Textual) - USD ($) $ in Thousands | Dec. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 |
Debt Securities, Available-for-sale, Total | $ 88,292 | $ 62,177 | |
Impairment of Long-Lived Assets Held-for-use | 0 | $ 0 | |
Goodwill, Impairment Loss | $ 0 | ||
NeuroNexus [Member] | |||
Goodwill, Impairment Loss | 1,300 | ||
Disposal Group, Including Discontinued Operation, Goodwill | $ 3,400 |
Note 10 - Fair Value Measurem_4
Note 10 - Fair Value Measurements - Marketable Securities Measured at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Available-for-sale Securities, Amortized Cost Basis | $ 62,175 | $ 88,291 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain | 2 | 1 |
Available-for-sale Securities | 62,177 | 88,292 |
Fair Value, Inputs, Level 1 [Member] | Cash [Member] | ||
Available-for-sale Securities, Amortized Cost Basis | 37,354 | 46,877 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain | ||
Available-for-sale Securities | 37,354 | 46,877 |
Fair Value, Inputs, Level 1 [Member] | US Treasury and Government [Member] | ||
Available-for-sale Securities, Amortized Cost Basis | 2,798 | 13,490 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain | 1 | 1 |
Available-for-sale Securities | 2,799 | 13,491 |
Fair Value, Inputs, Level 2 [Member] | Financial Debt Securities [Member] | ||
Available-for-sale Securities, Amortized Cost Basis | 7,849 | 13,677 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain | ||
Available-for-sale Securities | 7,849 | 13,677 |
Fair Value, Inputs, Level 2 [Member] | Industrial Debt Securities [Member] | ||
Available-for-sale Securities, Amortized Cost Basis | 14,174 | 14,247 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain | 1 | |
Available-for-sale Securities | $ 14,175 | $ 14,247 |
Note 11 - Business Segment, G_3
Note 11 - Business Segment, Geographic and Concentration Risk Information (Details Textual) | 12 Months Ended |
Dec. 31, 2018 | |
Number of Reportable Segments | 1 |
Number of Reporting Units | 1 |
Note 11 - Business Segment, G_4
Note 11 - Business Segment, Geographic and Concentration Risk Information - Product Line Sales (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue from Contract with Customer, Including Assessed Tax | $ 12,345 | $ 11,903 | $ 23,470 | $ 21,440 |
Algovita [Member] | ||||
Revenue from Contract with Customer, Including Assessed Tax | 12,289 | 11,509 | 23,332 | 20,590 |
Development and Engineering Services [Member] | ||||
Revenue from Contract with Customer, Including Assessed Tax | $ 56 | $ 394 | $ 138 | $ 850 |
Note 13 - Recently Issued Acc_2
Note 13 - Recently Issued Accounting Standards (Details Textual) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 |
Operating Lease, Right-of-Use Asset | $ 1,622 | |
Operating Lease, Liability, Total | 2,045 | |
Finance Lease, Liability, Total | $ 0 | |
Minimum [Member] | ||
Lessee, Operating Lease, Term of Contract | 5 years | |
Maximum [Member] | ||
Lessee, Operating Lease, Term of Contract | 8 years | |
Accounting Standards Update 2016-02 [Member] | ||
Operating Lease, Right-of-Use Asset | $ 1,800 | |
Operating Lease, Liability, Total | $ 2,300 |