|
Nevada
|
| |
809913
|
| |
82-2726719
|
|
|
(State or other jurisdiction of
incorporation or organization) |
| |
(Primary Standard Industrial
Classification Code Number) |
| |
(I.R.S. Employer
Identification Number) |
|
|
Large accelerated filer:
☐
|
| |
Accelerated filer:
☐
|
|
|
Non-accelerated filer:
☐
|
| |
Smaller reporting company:
☒
|
|
| | | |
Emerging Growth Company:
☒
|
|
|
CALCULATION OF REGISTRATION FEE
|
| ||||||||||||||||||||||||||||
|
Title of each class of securities
to be registered |
| | |
Amount To Be
Registered(1) |
| | |
Proposed Maximum
Offering Price Per Share(2) |
| | |
Proposed Maximum
Aggregate Offering Price |
| | |
Amount of
Registration Fee(3) |
| ||||||||||||
|
Common Stock, $0.001 par value
|
| | | | | 16,357,703 | | | | | | $ | 1.06 | | | | | | $ | 17,339,165 | | | | | | $ | 1,892 | | |
|
Common Stock, $0.001 par value, underlying Warrants
|
| | | | | 16,357,703 | | | | | | $ | 1.06 | | | | | | $ | 17,339,165 | | | | | | $ | 1,892 | | |
|
Total:
|
| | | | | 32,715,406 | | | | | | | | | | | | | $ | 34,678,330 | | | | | | $ | 3,784(4) | | |
| | | | | ii | | | |
| | | | | iii | | | |
| | | | | iii | | | |
| | | | | 1 | | | |
| | | | | 1 | | | |
| | | | | 3 | | | |
| | | | | 5 | | | |
| | | | | 10 | | | |
| | | | | 12 | | | |
| | | | | 29 | | | |
| | | | | 30 | | | |
| | | | | 32 | | | |
| | | | | 49 | | | |
| | | | | 49 | | | |
| | | | | 50 | | | |
| | | | | 61 | | | |
| | | | | 65 | | | |
| | | | | 79 | | | |
| | | | | 82 | | | |
| | | | | 84 | | | |
| | | | | 88 | | | |
| | | | | 90 | | | |
| | | | | 94 | | | |
| | | | | 96 | | | |
| | | | | 96 | | | |
| | | | | 96 | | | |
| | | | | F-1 | | |
|
Year ended December 31
|
| ||||||
|
2020
|
| |
2019
|
| |
2018
|
|
|
Cdn$1.3415
|
| |
Cdn$1.3269
|
| |
Cdn$1.2957
|
|
Period
|
| |
High
|
| |
Low
|
| |
Volume
|
| |||
2021 | | | | | | | | | | | | | |
January (though January 28, 2021)
|
| |
Cdn$1.54
|
| |
Cdn$1.30
|
| | | | 389,767 | | |
2020 | | | | | | | | | | | | | |
Quarter Ended December 31, 2020
|
| |
Cdn$1.60
|
| |
Cdn$0.80
|
| | | | 937,000 | | |
Quarter Ended September 30, 2020
|
| |
Cdn$1.25
|
| |
Cdn$0.83
|
| | | | 665,000 | | |
Quarter Ended June 30, 2020
|
| |
Cdn$1.40
|
| |
Cdn$0.81
|
| | | | 798,500 | | |
Quarter Ended March 31, 2020
|
| |
Cdn$2.00
|
| |
Cdn$0.81
|
| | | | 1,204,300 | | |
2019 | | | | | | | | | | | | | |
Quarter Ended December 31, 2019
|
| |
Cdn$2.34
|
| |
Cdn$1.52
|
| | | | 1,892,300 | | |
Quarter Ended September 30, 2019
|
| |
Cdn$2.44
|
| |
Cdn$1.44
|
| | | | 2,164,500 | | |
Quarter Ended June 30, 2019
|
| |
Cdn$2.18
|
| |
Cdn$1.40
|
| | | | 1,318,100 | | |
Quarter Ended March 31, 2019
|
| |
Cdn$3.11
|
| |
Cdn$1.46
|
| | | | 1,175,300 | | |
2018 | | | | | | | | | | | | | |
Quarter Ended December 31, 2018
|
| |
Cdn$2.36
|
| |
Cdn$1.76
|
| | | | 987,600 | | |
Quarter Ended September 30, 2018
|
| |
Cdn$2.91
|
| |
Cdn$1.70
|
| | | | 659,900 | | |
Quarter Ended June 30, 2018(1)
|
| |
Cdn$1.70
|
| |
Cdn$1.70
|
| | | | — | | |
Quarter Ended March 31, 2018
|
| |
Cdn$4.39
|
| |
Cdn$1.36
|
| | | | 1,892,900 | | |
| | |
Year Ended December 31
|
| |
Change
|
| ||||||||||||||||||
| | |
2019
|
| |
2018
|
| |
$
|
| |
%
|
| ||||||||||||
Revenue | | | | | | | | | | | | | | | | | | | | | | | | | |
Patient Service fees, net
|
| | | $ | 13,738 | | | | | $ | 13,899 | | | | | $ | (161) | | | | | | -1.2% | | |
Hospital, management and other
|
| | | | 3,987 | | | | | | 913 | | | | | | 3,074 | | | | | | 336.7% | | |
Total Revenue
|
| | | | 17,725 | | | | | | 14,812 | | | | | | 2,913 | | | | | | 19.7% | | |
Cost of Revenues
|
| | | | (4,955) | | | | | | (3,551) | | | | | | (1,404) | | | | | | 39.5% | | |
Gross Margin
|
| | | | 12,770 | | | | | | 11,261 | | | | | | 1,509 | | | | | | 13.4% | | |
Operating Expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
General and administrative
|
| | | | 8,427 | | | | | | 5,312 | | | | | | 3,115 | | | | | | 58.6% | | |
Sales and marketing
|
| | | | 1,435 | | | | | | 807 | | | | | | 628 | | | | | | 77.8% | | |
Depreciation and amortization
|
| | | | 537 | | | | | | 407 | | | | | | 130 | | | | | | 31.9% | | |
Total operating expenses
|
| | | | 10,339 | | | | | | 6,526 | | | | | | 3,873 | | | | | | 59.3% | | |
Income from operations
|
| | | | 2,371 | | | | | | 4,735 | | | | | | (2,364) | | | | | | -49.9% | | |
Other income/(expenses) | | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings from equity method investments
|
| | | | 1,305 | | | | | | 1,167 | | | | | | 138 | | | | | | 11.8% | | |
Other income/(expenses)
|
| | | | 172 | | | | | | 142 | | | | | | 30 | | | | | | 21.1% | | |
Interest, net
|
| | | | (326) | | | | | | 7 | | | | | | (333) | | | | | | -4757.1% | | |
Total other income
|
| | | | 1,151 | | | | | | 1,316 | | | | | | (165) | | | | | | -12.5% | | |
Income before taxes
|
| | | | 3,522 | | | | | | 6,051 | | | | | | (2,529) | | | | | | -41.8% | | |
Income tax expense
|
| | | | (806) | | | | | | (1,731) | | | | | | 925 | | | | | | -53.4% | | |
Net Income
|
| | | | 2,716 | | | | | | 4,320 | | | | | | (1,604) | | | | | | -37.1% | | |
Income per common share | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | $ | 0.08 | | | | | $ | 0.12 | | | | | $ | (0.05) | | | | | | -34.2% | | |
Diluted
|
| | | $ | 0.06 | | | | | $ | 0.10 | | | | | $ | (0.04) | | | | | | -35.2% | | |
Weighted average number common shares – basic
|
| | | | 34,402,607 | | | | | | 35,552,234 | | | | | | (1,149,627) | | | | | | -3.2% | | |
Weighted average number common shares – diluted
|
| | | | 41,912,607 | | | | | | 44,936,234 | | | | | | (3,023,627) | | | | | | -6.7% | | |
| | |
Three Months
Ended September 30, 2020 |
| |
Three Months
Ended September 30, 2019 |
| |
Nine Months
Ended September 30, 2020 |
| |
Nine Months
Ended September 30, 2019 |
| ||||||||||||
Revenue | | | | | | | | | | | | | | | | | | | | | | | | | |
Patient service fees, net
|
| | | $ | 2,965 | | | | | $ | 6,932 | | | | | $ | (6,342) | | | | | $ | 20,066 | | |
Hospital, management and other
|
| | | | 998 | | | | | | 1,019 | | | | | | 3,902 | | | | | | 2,318 | | |
Total revenue
|
| | | | 3,963 | | | | | | 7,951 | | | | | | (2,440) | | | | | | 22,384 | | |
Cost of revenues
|
| | | | (2,232) | | | | | | (1,275) | | | | | | (5,062) | | | | | | (4,466) | | |
Gross (loss) margin
|
| | | | 1,731 | | | | | | 6,676 | | | | | | (7,502) | | | | | | 17,918 | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
General and administrative
|
| | | | 1,957 | | | | | | 1,570 | | | | | | 5,853 | | | | | | 5,090 | | |
| | |
Three Months
Ended September 30, 2020 |
| |
Three Months
Ended September 30, 2019 |
| |
Nine Months
Ended September 30, 2020 |
| |
Nine Months
Ended September 30, 2019 |
| ||||||||||||
Sales and marketing
|
| | | | 349 | | | | | | 394 | | | | | | 801 | | | | | | 1,067 | | |
Depreciation and amortization
|
| | | | 249 | | | | | | 116 | | | | | | 769 | | | | | | 332 | | |
Total operating expenses
|
| | | | 2,555 | | | | | | 2,080 | | | | | | 7,423 | | | | | | 6,489 | | |
Income/(loss) from operations
|
| | | | (824) | | | | | | 4,596 | | | | | | (14,925) | | | | | | 11,429 | | |
Other income/(expenses) | | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings/(loss) from equity method investments
|
| | | | (232) | | | | | | 285 | | | | | | (1,449) | | | | | | 1,192 | | |
Other income/(expense)
|
| | | | (3) | | | | | | (56) | | | | | | 50 | | | | | | 5 | | |
Interest, net
|
| | | | (285) | | | | | | (62) | | | | | | (783) | | | | | | (163) | | |
Total other income/(expense)
|
| | | | (520) | | | | | | 167 | | | | | | (2,182) | | | | | | 1,034 | | |
Income/(loss) before income taxes
|
| | | | (1,344) | | | | | | 4,763 | | | | | | (17,107) | | | | | | 12,463 | | |
Income tax benefit (expense)
|
| | | | 367 | | | | | | (1,094) | | | | | | 2,396 | | | | | | (3,022) | | |
Net income/(loss)
|
| | | $ | (977) | | | | | $ | 3,669 | | | | | $ | (14,711) | | | | | $ | 9,441 | | |
Basic income/(loss) per common share
|
| | | $ | (0.03) | | | | | $ | 0.11 | | | | | $ | (0.42) | | | | | $ | 0.27 | | |
Diluted income/(loss) per common share
|
| | | $ | (0.03) | | | | | $ | 0.09 | | | | | $ | (0.42) | | | | | $ | 0.23 | | |
|
| | |
September 30, 2020
|
| |||||||||||||||||||||||||||
Category
|
| |
Total
|
| |
Less than 1 Year
|
| |
1 – 4 Years
|
| |
4 – 5 Years
|
| |
Over 5 Years
|
| |||||||||||||||
Trade & other payables
|
| | | $ | 1,239 | | | | | $ | 1,239 | | | | | $ | — | | | | |
$
|
—
|
| | | |
$
|
—
|
| |
| | |
September 30, 2020
|
| |||||||||||||||||||||||||||
Category
|
| |
Total
|
| |
Less than 1 Year
|
| |
1 – 4 Years
|
| |
4 – 5 Years
|
| |
Over 5 Years
|
| |||||||||||||||
Bank Debt
|
| | | | 4,100 | | | | | | 4,100 | | | | | | — | | | | |
|
—
|
| | | |
|
—
|
| |
Payroll Protection Program
|
| | | | 1,211 | | | | | | — | | | | | | 1,211 | | | | |
|
—
|
| | | |
|
—
|
| |
Convertible Debt
|
| | | | 3,450 | | | | | | — | | | | | | 3,450 | | | | |
|
—
|
| | | |
|
—
|
| |
Lease Liabilities
|
| | | | 1,084 | | | | | | 561 | | | | | | 523 | | | | |
|
—
|
| | | |
|
—
|
| |
Acquisition Liabilities
|
| | | | 3,880 | | | | | | 3,880 | | | | | | — | | | | |
|
—
|
| | | |
|
—
|
| |
Other Liabilities
|
| | | | 181 | | | | | | 181 | | | | | | — | | | | |
|
—
|
| | | |
|
—
|
| |
| | | | $ | 15,145 | | | | | $ | 9,961 | | | | | $ | 5,184 | | | | |
$
|
—
|
| | | |
$
|
—
|
| |
|
| | |
December 31, 2019
|
| |||||||||||||||||||||||||||
Category
|
| |
Total
|
| |
Less than 1 Year
|
| |
1 – 4 Years
|
| |
4 – 5 Years
|
| |
Over 5 Years
|
| |||||||||||||||
Trade & other payables
|
| | | $ | 4,365 | | | | | $ | 4,365 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Bank Debt
|
| | | | 2,418 | | | | | | 1,664 | | | | | | 754 | | | | | | — | | | | | | — | | |
Convertible Debt
|
| | | | 965 | | | | | | — | | | | | | 965 | | | | | | — | | | | | | — | | |
Lease Liabilities
|
| | | | 1,055 | | | | | | 524 | | | | | | 531 | | | | | | — | | | | | | — | | |
Acquisition Liabilities
|
| | | | 7,459 | | | | | | 5,030 | | | | | | 2,429 | | | | | | — | | | | | | — | | |
Other Liabilities
|
| | | | 81 | | | | | | 81 | | | | | | — | | | | | | — | | | | | | — | | |
| | | | $ | 16,343 | | | | | $ | 11,664 | | | | | $ | 4,679 | | | | | | — | | | | | | — | | |
Name
|
| |
Age
|
| |
Position
|
|
John Farlinger | | |
61
|
| | Executive Chairperson and Chief Executive Officer | |
Trent Carman | | |
59
|
| | Chief Financial Officer | |
Preston Parsons | | |
41
|
| | Director and Founder | |
Martin Burian | | |
57
|
| | Director | |
Christopher Rumana | | |
52
|
| | Director | |
Steven Summer | | |
71
|
| | Director | |
Name and Principal Position
|
| |
Year
|
| |
Salary
($) |
| |
Bonus
($) |
| |
Stock
Awards ($) |
| |
Option
Awards ($) |
| |
Non-Equity
Incentive Plan Compensation ($) |
| |
Change in
pension value and nonqualified deferred compensation earnings ($) |
| |
All Other
Compensation ($) |
| |
Total
($) |
| |||||||||||||||||||||||||||
John Farlinger,(1)
Executive Chairperson and Chief Executive Officer |
| | | | 2020 | | | | | | 306,583 | | | | | | 325,474 | | | | | | 315,600 | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | | 57,510 | | | | | | 1,005,167 | | |
| | | 2019 | | | | | | 285,000 | | | | | | 82,000 | | | | | | Nil | | | | | | 117,000 | | | | | | Nil | | | | | | Nil | | | | | | 70,880 | | | | | | 554,880 | | | ||
| | | 2018 | | | | | | 203,621 | | | | | | 96,000 | | | | | | Nil | | | | | | 302,000 | | | | | | Nil | | | | | | Nil | | | | | | 30,210 | | | | | | 631,831 | | | ||
Trent Carman,(2)
Chief Financial Officer |
| | | | 2020 | | | | | | 286,583 | | | | | | 162,776 | | | | | | 210,400 | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | | 8,410 | | | | | | 668,169 | | |
| | | 2019 | | | | | | 238,001 | | | | | | 15,000 | | | | | | Nil | | | | | | 157,000 | | | | | | Nil | | | | | | Nil | | | | | | 47,502 | | | | | | 457,503 | | | ||
| | | 2018 | | | | | | 38,334 | | | | | | 20,000 | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | | 3,246 | | | | | | 61,580 | | | ||
Preston Parsons,(3)(4)(5)
Founder and Director |
| | | | 2020 | | | | | | 274,916 | | | | | | 382,709 | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | | 24,495 | | | | | | 682,120 | | |
| | | 2019 | | | | | | 265,270 | | | | | | 104,930 | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | | 58,575 | | | | | | 428,775 | | | ||
| | | 2018 | | | | | | 137,975 | | | | | | 90,000 | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | | 110,408 | | | | | | 338,383 | | |
Name andPrincipal Position
|
| |
Type of
compensation security |
| |
Number of
compensation securities, number of underlying securities |
| |
Date of
issue or grant |
| |
Issue,
conversion or exercise price ($) |
| |
Closing
price of security or underlying security on date of grant ($) |
| |
Closing
price of security or underlying security at year end ($) |
| |
Expiry
Date |
|
John Farlinger,(1)
Executive Chairperson and Chief Executive Officer |
| |
Stock Options
|
| |
117,000 underlying common shares
|
| |
1/16/2019
|
| |
Cdn$2.07
US$1.56(5) |
| |
Cdn$2.50
US$1.89(6) |
| |
US$1.10(7)
|
| |
1/16/2022
|
|
|
Restricted Stock
|
| |
300,000 common shares
|
| |
3/4/2020
|
| |
US$1.03(8)
|
| | | | |
US$1.03(8)
|
| |
12/31/2021
|
| ||
Trent Carman,(2)
Chief Financial Officer |
| |
Stock Options
|
| |
157,000 underlying common shares
|
| |
1/16/2019
|
| |
Cdn$2.07
US$1.56(5) |
| |
Cdn$2.50
US$1.89(6) |
| |
US$1.10(8)
|
| |
Cancelled
|
|
|
Restricted Stock
|
| |
200,000 common shares
|
| |
3/4/2020
|
| |
US$1.03(8)
|
| |
US$1.052
|
| |
US$1.03(8)
|
| |
12/31/2021
|
|
Name andPrincipal Position
|
| |
Type of
compensation security |
| |
Number of
compensation securities, number of underlying securities |
| |
Date of
issue or grant |
| |
Issue,
conversion or exercise price ($) |
| |
Closing
price of security or underlying security on date of grant ($) |
| |
Closing
price of security or underlying security at year end ($) |
| |
Expiry
Date |
|
Preston Parsons,(3)(4)
Founder and Director |
| |
Restricted Stock
|
| |
3,300,000 common shares
|
| |
11/8/2016
|
| |
US$1.03(8)
|
| |
US$1.052
|
| |
US$1.03(8)
|
| |
12/31/2021
|
|
| | |
Option Awards
|
| |
Stock Awards
|
| ||||||||||||||||||||||||||||||||||||||||||||||||
Name andPrincipal Position
|
| |
Number of
Securities Underlying Unexercised Options (#) Exercisable |
| |
Number of
Securities Underlying Unexercised Options (#) Unexercisable |
| |
Equity
Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#) |
| |
Option
Exercise Price ($) |
| |
Option
Expiration Date |
| |
Number
of Shares or Units of Stock That Have Not Vested (#) |
| |
Market
Value of Shares or Units of Stock That Have Not Vested ($) |
| |
Equity
Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#) |
| |
Equity
Incentive Plan Awards: Market or Payout Value of Shares, Units or Other Rights That Have Not Vested ($) |
| |||||||||||||||||||||||||||
John Farlinger,(1)
Executive Chairperson and Chief Executive Officer |
| | | | 302,000 | | | | | | Nil | | | | | | Nil | | | | | $ | 1.80 | | | | | | 10/1/2023 | | | | | | 300,000 | | | | | $ | 315,600 | | | | | | Nil | | | | | | Nil | | |
| | | 117,000 | | | | | | | | | | | | | | | | | $ | 1.56 | | | | | | 1/16/2024 | | | | | | | | | | | | |||||||||||||||||
Trent Carman,(2)
Chief Financial Officer |
| | | | Nil | | | | | | Nil | | | | | | Nil | | | | | | NA | | | | | | NA | | | | | | 200,000 | | | | | $ | 210,400 | | | | | | Nil | | | | | | Nil | | |
Preston Parsons,(3)(4)(5)
Founder and Director |
| | | | 1,000,000 | | | | | | Nil | | | | | | Nil | | | | | $ | 0.05 | | | | | | 8/25/2025 | | | | | | 3,300,000 | | | | | $ | 3,471,600 | | | | | | Nil | | | | | | Nil | | |
Name
|
| |
Fees Earned or
Paid in Cash ($) |
| |
Stock
Awards ($) |
| |
Option
Awards ($) |
| |
Non-Equity
Incentive Plan Compensation ($) |
| |
Nonqualified
Deferred Compensation Earnings ($) |
| |
All Other
Compensation ($) |
| |
Total
($) |
| |||||||||||||||||||||
Martin Burian,(1)(2)
Independent Director |
| | | $ | 50,000 | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | $ | 50,000 | | |
Christopher Rumana,(1)(3)
Independent Director |
| | | $ | 50,000 | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | $ | 50,000 | | |
Steven Summer,(1)(4)
Independent Director |
| | | $ | 50,000 | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | $ | 50,000 | | |
Scott Page,(1)(5)
Former Director |
| | | $ | 34,212 | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | $ | 34,212 | | |
Name and Address of Beneficial Owner
|
| |
Amount and nature of
beneficial ownership |
| |
Percent of Class
|
| ||||||
John Farlinger(1)
|
| | | | 1,192,000 | | | | | | 1.9% | | |
c/o Assure Holdings Corp, 4600 South Ulster Street, Suite 1225, Denver, Colorado.
|
| | | ||||||||||
Trent Carman(2)
|
| | | | 364,156 | | | | | | 0.6% | | |
c/o Assure Holdings Corp, 4600 South Ulster Street, Suite 1225, Denver, Colorado.
|
| | | ||||||||||
Preston Parsons(3)
|
| | | | 22,032,490 | | | | | | 38.3% | | |
c/o Assure Holdings Corp, 4600 South Ulster Street, Suite 1225, Denver, Colorado.
|
| | | ||||||||||
Martin Burian(4)
|
| | | | 363,000 | | | | | | 0.7% | | |
c/o Assure Holdings Corp, 4600 South Ulster Street, Suite 1225, Denver, Colorado.
|
| | | ||||||||||
Christopher Rumana(5)
|
| | | | 308,124 | | | | | | 0.5% | | |
c/o Assure Holdings Corp, 4600 South Ulster Street, Suite 1225, Denver, Colorado.
|
| | | ||||||||||
Steven Summer(6)
|
| | | | 168,124 | | | | | | 0.3% | | |
c/o Assure Holdings Corp, 4600 South Ulster Street, Suite 1225, Denver, Colorado.
|
| | | ||||||||||
Directors and Executive Officers as a Group (6 persons)
|
| | | | 24,427,894 | | | | |
|
41.67%
|
| |
Manchester Explorer, L.P.(7)
|
| | | | 9,375,000 | | | | | | 9.99% | | |
2 Calle Nairn, #701
San Juan, PR 00907 |
| | | ||||||||||
Special Situations Fund III QP, L.P.(8)(12)
|
| | | | 6,581,346 | | | | | | 9.99% | | |
527 Madison Ave., Suite 2600
New York, NY 10022 |
| | | ||||||||||
Special Situations Cayman Fund, L.P.(9)(12)
|
| | | | 2,182,570 | | | | | | 3.8% | | |
527 Madison Ave., Suite 2600
New York, NY 10022 |
| | | ||||||||||
Special Situations Life Sciences Fund, L.P.(10)(12)
|
| | | | 3,736,084 | | | | | | 6.4% | | |
527 Madison Ave., Suite 2600
New York, NY 10022 |
| | |
Name and Address of Beneficial Owner
|
| |
Amount and nature of
beneficial ownership |
| |
Percent of Class
|
| ||||||
Special Situations Private Equity Fund, L.P.(11)(12)
|
| | | | 3,125,000 | | | | | | 5.4% | | |
527 Madison Ave., Suite 2600
New York, NY 10022 |
| | |
| | |
September 30, 2020
|
| |
December 31, 2019
|
| ||||||
Due from PEs, net(a)(b)
|
| | | $ | 3,381,000 | | | | | $ | 2,489,000 | | |
Due from Management and Board, net(c)
|
| | | $ | 349,000 | | | | | $ | 128,000 | | |
Due from Related Parties, net
|
| | | $ | 3,730,000 | | | | | $ | 2,617,000 | | |
Name of Selling Stockholder
|
| |
Number of
Shares of Common Stock Owned After Offering(1) |
| |
Maximum
Number of Shares of Common Stock to be Sold Pursuant to this Prospectus(1) |
| |
Number of
Shares of Common Stock Owned Prior to Offering |
| |
Percentage of
Common Stock Owned After the Offering |
| ||||||||||||
Kestrel Flight Fund LLC(2)
|
| | | | 1,250,000 | | | | | | 1,250,000 | | | | | | — | | | | | | — | | |
Founding Asset Management(3)
|
| | | | 1,250,000 | | | | | | 1,250,000 | | | | | | — | | | | | | — | | |
Morgan Frank(4)
|
| | | | 781,250 | | | | | | 781,250 | | | | | | — | | | | | | — | | |
Manchester Explorer, L.P.(5)
|
| | | | 9,375,000 | | | | | | 9,375,000 | | | | | | — | | | | | | — | | |
JEB Partners, L.P.(6)
|
| | | | 1,562,500 | | | | | | 1,562,500 | | | | | | — | | | | | | — | | |
James Besser(7)
|
| | | | 781,250 | | | | | | 781,250 | | | | | | — | | | | | | — | | |
Special Situations Fund III QP, L.P.(8)(20)
|
| | | | 6,581,346 | | | | | | 6,581,346 | | | | | | — | | | | | | — | | |
Special Situations Cayman Fund, L.P.(9)(20)
|
| | | | 2,182,570 | | | | | | 2,182,570 | | | | | | — | | | | | | — | | |
Special Situations Life Sciences Fund,
L.P.(10)(20) |
| | | | 3,736,084 | | | | | | 3,736,084 | | | | | | — | | | | | | — | | |
Special Situations Private Equity Fund, L.P.(11)(20)
|
| | | | 3,125,000 | | | | | | 3,125,000 | | | | | | — | | | | | | — | | |
Manatuck Hill Navigator Master Fund,
LP(12) |
| | | | 625,000 | | | | | | 625,000 | | | | | | — | | | | | | — | | |
Juda Living Trust(13)
|
| | | | 807,500 | | | | | | 312,500 | | | | | | 495,000 | | | | | | * | | |
Alan Budd Zuckerman(14)
|
| | | | 240,000 | | | | | | 200,000 | | | | | | 40,000 | | | | | | * | | |
Preston Parsons(15)
|
| | | | 22,032,490 | | | | | | 312,500 | | | | | | 21,719,990 | | | | | | 38.2% | | |
John Farlinger(16)
|
| | | | 1,192,000 | | | | | | 320,000 | | | | | | 872,000 | | | | | | * | | |
Trent Carman(17)
|
| | | | 364,156 | | | | | | 164,156 | | | | | | 200,000 | | | | | | * | | |
Christopher Rumana(18)
|
| | | | 308,124 | | | | | | 78,124 | | | | | | 230,000 | | | | | | * | | |
Steven Summer(19)
|
| | | | 168,124 | | | | | | 78,124 | | | | | | 90,000 | | | | | | * | | |
| Audited Consolidated Financial Statements of Assure Holdings Corp. | | | | | | | |
| | | | | F-2 | | | |
| | | | | F-3 | | | |
| | | | | F-4 | | | |
| | | | | F-5 | | | |
| | | | | F-6 | | | |
| | | | | F-7 | | | |
| | | | | F-33 | | |
| | |
December 31,
2019 |
| |
December 31,
2018 |
| ||||||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash
|
| | | $ | 59 | | | | | $ | 831 | | |
Accounts receivable, net
|
| | | | 30,863 | | | | | | 22,175 | | |
Other assets
|
| | | | 168 | | | | | | 85 | | |
Due from related parties
|
| | | | 2,617 | | | | | | 2,966 | | |
Total current assets
|
| | | | 33,707 | | | | | | 26,057 | | |
Equity method investments
|
| | | | 2,360 | | | | | | 2,256 | | |
Property, plant and equipment, net
|
| | | | 871 | | | | | | 680 | | |
Intangibles, net
|
| | | | 4,587 | | | | | | — | | |
Goodwill
|
| | | | 2,857 | | | | | | — | | |
Total assets
|
| | | $ | 44,382 | | | | | $ | 28,993 | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | |
LIABILITIES | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accounts payable and accrued liabilities
|
| | | $ | 4,365 | | | | | $ | 3,016 | | |
Current portion of debt
|
| | | | 1,664 | | | | | | 274 | | |
Current portion of lease liability
|
| | | | 461 | | | | | | 206 | | |
Income taxes payable
|
| | | | — | | | | | | 267 | | |
Current portion of acquisition liability
|
| | | | 5,030 | | | | | | — | | |
Other current liabilities
|
| | | | 81 | | | | | | — | | |
Total current liabilities
|
| | | | 11,601 | | | | | | 3,763 | | |
Lease liability, net of current portion
|
| | | | 500 | | | | | | 381 | | |
Debt, net of current portion
|
| | | | 1,160 | | | | | | — | | |
Acquisition debt, net of current portion
|
| | | | 2,429 | | | | | | — | | |
Provision for acquisition share issuance
|
| | | | 540 | | | | | | — | | |
Provision for fair value of stock options
|
| | | | 66 | | | | | | 246 | | |
Provision for performance share issuance
|
| | | | 16,011 | | | | | | 16,011 | | |
Provision for fair value of broker warrants
|
| | | | — | | | | | | 56 | | |
Deferred tax liability, net
|
| | | | 2,010 | | | | | | 1,410 | | |
Total liabilities
|
| | | | 34,317 | | | | | | 21,867 | | |
Commitments and contingencies (Note 15) | | | | | | | | | |||||
SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | |
Common stock: $0.001 par value; 900,000,000 shares authorized. 34,795,313
and 35,562,105 shares issued and outstanding, respectively. |
| | | | 35 | | | | | | 36 | | |
Additional paid-in capital
|
| | | | 6,682 | | | | | | 6,458 | | |
Retained earnings
|
| | | | 3,348 | | | | | | 632 | | |
Total shareholders’ equity
|
| | | | 10,065 | | | | | | 7,126 | | |
Total liabilities and shareholders’ equity
|
| | | $ | 44,382 | | | | | $ | 28,993 | | |
| | |
Years Ended
|
| |||||||||
| | |
December 31,
2019 |
| |
December 31,
2018 |
| ||||||
Revenue | | | | | | | | | | | | | |
Patient service fees, net
|
| | | $ | 13,738 | | | | | $ | 13,899 | | |
Hospital, management and other
|
| | | | 3,987 | | | | | | 913 | | |
Total revenue
|
| | | | 17,725 | | | | | | 14,812 | | |
Cost of revenues
|
| | | | (4,955) | | | | | | (3,551) | | |
Gross margin
|
| | | | 12,770 | | | | | | 11,261 | | |
Operating expenses | | | | | | | | | | | | | |
General and administrative
|
| | | | 8,427 | | | | | | 5,312 | | |
Sales and marketing
|
| | | | 1,435 | | | | | | 807 | | |
Depreciation and amortization
|
| | | | 537 | | | | | | 407 | | |
Total operating expenses
|
| | | | 10,399 | | | | | | 6,526 | | |
Income from operations
|
| | | | 2,371 | | | | | | 4,735 | | |
Other income/(expenses) | | | | | | | | | | | | | |
Earnings from equity method investments
|
| | | | 1,305 | | | | | | 1,167 | | |
Other income
|
| | | | 172 | | | | | | 142 | | |
Interest, net
|
| | | | (326) | | | | | | 7 | | |
Total other income
|
| | | | 1,151 | | | | | | 1,316 | | |
Income before income taxes
|
| | | | 3,522 | | | | | | 6,051 | | |
Income tax expense
|
| | | | (806) | | | | | | (1,731) | | |
Net income
|
| | | $ | 2,716 | | | | | $ | 4,320 | | |
Income per common share | | | | | | | | | | | | | |
Basic
|
| | | $ | 0.08 | | | | | $ | 0.12 | | |
Diluted
|
| | | $ | 0.06 | | | | | $ | 0.10 | | |
Weighted average number of common shares used in per share calculation – basic | | | | | 34,402,607 | | | | | | 35,552,234 | | |
Weighted average number of common shares used in per share calculation – diluted | | | | | 41,912,607 | | | | | | 44,936,234 | | |
| | |
Common Stock
|
| |
Additional
paid-in capital |
| |
Retained
Earnings |
| |
Total
|
| ||||||||||||||||||
|
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||
Balances, December 31, 2017
|
| | | | 35,505,105 | | | | | $ | 36 | | | | | $ | 6,079 | | | | | $ | (3,688) | | | | | $ | 2,427 | | |
Exercise of stock options
|
| | | | 50,000 | | | | | | — | | | | | | 2 | | | | | | — | | | | | | 2 | | |
Exercise of warrants
|
| | | | 7,000 | | | | | | — | | | | | | 3 | | | | | | — | | | | | | 3 | | |
Reclassification warrant fair value at exercise to equity
|
| | | | — | | | | | | — | | | | | | 10 | | | | | | — | | | | | | 10 | | |
Share based compensation
|
| | | | — | | | | | | — | | | | | | 364 | | | | | | — | | | | | | 364 | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | 4,320 | | | | | | 4,320 | | |
Balances, December 31, 2018
|
| | | | 35,562,105 | | | | | $ | 36 | | | | | $ | 6,458 | | | | | $ | 632 | | | | | $ | 7,126 | | |
Exercise of stock options
|
| | | | 650,000 | | | | | | — | | | | | | 80 | | | | | | — | | | | | | 80 | | |
Exercise of warrants
|
| | | | 44,600 | | | | | | — | | | | | | 16 | | | | | | — | | | | | | 16 | | |
Reclassification warrant fair value at exercise to equity
|
| | | | — | | | | | | — | | | | | | 70 | | | | | | — | | | | | | 70 | | |
Share based compensation
|
| | | | — | | | | | | — | | | | | | 1,259 | | | | | | — | | | | | | 1,259 | | |
Reclassification of stock option fair value at exercise to equity
|
| | | | — | | | | | | — | | | | | | 188 | | | | | | — | | | | | | 188 | | |
Tax of stock option exercises
|
| | | | — | | | | | | — | | | | | | 179 | | | | | | — | | | | | | 179 | | |
Equity component of convertible debt issuance
|
| | | | — | | | | | | — | | | | | | 564 | | | | | | — | | | | | | 564 | | |
Fair value of finders’ warrants
|
| | | | — | | | | | | — | | | | | | 58 | | | | | | — | | | | | | 58 | | |
Settlement of related party receivable
|
| | | | (1,461,392) | | | | | | (1) | | | | | | (2,190) | | | | | | — | | | | | | (2,191) | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | 2,716 | | | | | | 2,716 | | |
Balances, December 31, 2019
|
| | | | 34,795,313 | | | | | $ | 35 | | | | | $ | 6,682 | | | | | $ | 3,348 | | | | | $ | 10,065 | | |
|
| | |
Years Ended
|
| |||||||||
| | |
December 31, 2019
|
| |
December 31, 2018
|
| ||||||
Cash flows from operating activities | | | | | | | | | | | | | |
Net income
|
| | | $ | 2,716 | | | | | $ | 4,320 | | |
Adjustments to reconcile net income to net cash used in operating activities | | | | | | | | | | | | | |
Earnings from equity method investments
|
| | | | (1,305) | | | | | | (1,167) | | |
Share based compensation
|
| | | | 1,259 | | | | | | 364 | | |
Depreciation and amortization
|
| | | | 537 | | | | | | 407 | | |
Provision for broker warrant fair value
|
| | | | 14 | | | | | | (62) | | |
Provision for stock option fair value
|
| | | | 8 | | | | | | (80) | | |
Deferred income taxes, net
|
| | | | 684 | | | | | | 574 | | |
Change in operating assets and liabilities | | | | | | | | | | | | | |
Accounts receivable
|
| | | | (6,865) | | | | | | (5,552) | | |
Accounts payable and accrued liabilities
|
| | | | 509 | | | | | | 511 | | |
Due from related party, net
|
| | | | (1,903) | | | | | | (710) | | |
Income taxes
|
| | | | (55) | | | | | | 989 | | |
Other assets
|
| | | | 173 | | | | | | 45 | | |
Cash used in operating activities
|
| | | | (4,228) | | | | | | (361) | | |
Cash flows from investing activities | | | | | | | | | | | | | |
Purchase of equipment and furniture
|
| | | | (48) | | | | | | (296) | | |
Acquisition of Littleton Professional Reading
|
| | | | (466) | | | | | | — | | |
Distributions received from equity method investments
|
| | | | 979 | | | | | | 1,171 | | |
Cash provided by investing activities
|
| | | | 465 | | | | | | 875 | | |
Cash flows from financing activities | | | | | | | | | | | | | |
Proceeds from exercise of stock options and warrants
|
| | | | 16 | | | | | | 5 | | |
Proceeds from promissory note
|
| | | | 2,000 | | | | | | — | | |
Repayment of promissory note
|
| | | | (582) | | | | | | — | | |
Proceeds from line of credit
|
| | | | 1,000 | | | | | | 1,074 | | |
Repayment of line of credit
|
| | | | (274) | | | | | | (800) | | |
Proceeds from convertible debenture
|
| | | | 965 | | | | | | — | | |
Principal payments of finance leases
|
| | | | (372) | | | | | | (177) | | |
Proceeds from sale leaseback
|
| | | | 238 | | | | | | — | | |
Cash provided by financing activities
|
| | | | 2,991 | | | | | | 102 | | |
Increase (decrease) in cash
|
| | | | (772) | | | | | | 616 | | |
Cash at beginning of period
|
| | | | 831 | | | | | | 215 | | |
Cash at end of period
|
| | | $ | 59 | | | | | $ | 831 | | |
Supplemental cash flow information | | | | | | | | | | | | | |
Interest paid
|
| | | $ | 119 | | | | | $ | 89 | | |
Income taxes paid
|
| | | $ | 156 | | | | | $ | — | | |
Supplemental non-cash flow information | | | | | | | | | | | | | |
Purchase of equipment with finance leases
|
| | | $ | 253 | | | | | $ | 291 | | |
Reclassification warrant fair value at exercise to equity
|
| | | $ | 70 | | | | | $ | 10 | | |
Related party receivable settled for common shares
|
| | | $ | (2,191) | | | | | $ | — | | |
Liability for acquisition of Littleton Professional Reading
|
| | | $ | 234 | | | | | $ | — | | |
Liability for acquisition of Neuro-Pro Monitoring
|
| | | $ | 7,700 | | | | | $ | — | | |
|
Doctor agreements
|
| |
10 years
|
|
|
Noncompete agreements
|
| |
2 years
|
|
|
Medical Equipment
|
| | 2.5 years | |
|
Computer equipment
|
| | 2.0 years | |
|
Furniture and fixtures
|
| | 4.0 years | |
| | |
December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Accounts receivable, net:
|
| | | | | | | | | | | | |
Patient service fee
|
| | | $ | 67,779 | | | | | $ | 37,080 | | |
Hospital, management and other
|
| | | | 1,159 | | | | | | 388 | | |
Total accounts receivable
|
| | | | 68,938 | | | | | | 37,468 | | |
Allowance for doubtful accounts
|
| | | | (38,075) | | | | | | (15,293) | | |
Total accounts receivable, net
|
| | | $ | 30,863 | | | | | $ | 22,175 | | |
Year ended
|
| |
Balance at
beginning of year |
| |
Bad debt
expense |
| |
Deductions
|
| |
Balance at
end of year |
| ||||||||||||
December 31, 2019
|
| | | $ | 15,293 | | | | | $ | 26,433 | | | | | $ | (3,651) | | | | | $ | 38,075 | | |
December 31, 2018
|
| | | $ | 117 | | | | | $ | 15,196 | | | | | $ | (20) | | | | | $ | 15,293 | | |
| | |
December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Prepaid insurance
|
| | | $ | 104 | | | | | $ | 55 | | |
Deposits | | | | | 34 | | | | | | 30 | | |
Other assets
|
| | | | 30 | | | | | | — | | |
Other current assets
|
| | | $ | 168 | | | | | $ | 85 | | |
| | |
December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Office lease
|
| | | $ | 267 | | | | | $ | — | | |
Medical equipment
|
| | | | 1,712 | | | | | | 1,285 | | |
Computer equipment
|
| | | | 18 | | | | | | 18 | | |
Furniture and fixtures
|
| | | | 85 | | | | | | 56 | | |
Gross property, plant and equipment
|
| | | | 2,082 | | | | | | 1,359 | | |
Less: Accumulated depreciation and amortization
|
| | | | (1,211) | | | | | | (679) | | |
Property, plant and equipment, net
|
| | | $ | 871 | | | | | $ | 680 | | |
| | |
December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Accounts payable
|
| | | $ | 3,520 | | | | | $ | 2,305 | | |
Accrued salaries and benefits
|
| | | | 541 | | | | | | 360 | | |
Other accrued liabilities
|
| | | | 304 | | | | | | 351 | | |
Accounts payable and accrued liabilities
|
| | | $ | 4,365 | | | | | $ | 3,016 | | |
| | |
December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Insurance premiums financed
|
| | | $ | 81 | | | | | $ | — | | |
Other current liabilities
|
| | | $ | 81 | | | | | $ | — | | |
| | |
Years Ended December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
(Loss) gain for broker warrant fair value
|
| | | $ | (14) | | | | | $ | 62 | | |
(Loss) gain for stock option fair value
|
| | | | (8) | | | | | | 80 | | |
Gain on settlement
|
| | | | 194 | | | | | | — | | |
Other income
|
| | | $ | 172 | | | | | $ | 142 | | |
| | |
December 31, 2019
|
| |||
Operating
|
| | | $ | — | | |
Finance
|
| | | | 848 | | |
Total
|
| | | $ | 848 | | |
| | |
Year ended
December 31, 2019 |
| |||
Lease Cost: | | | | | | | |
Operating leases
|
| | | $ | 63 | | |
Finance leases: | | | | | | | |
Amortization of right-to-use assets
|
| | | | 307 | | |
Interest on lease liabilities
|
| | | | 91 | | |
Total finance lease cost
|
| | | | 398 | | |
Total lease cost
|
| | | $ | 461 | | |
| | |
As of
December 31, 2019 |
|
Weighted average remaining lease term: | | | ||
Operating leases
|
| |
17.2 months
|
|
Finance leases
|
| |
28.9 months
|
|
Weighted average discount rate: | | | | |
Operating leases
|
| |
6.8%
|
|
Finance leases
|
| |
9.3%
|
|
| | |
Operating
Leases |
| |
Finance
Leases |
| |
Total
Lease Liabilities |
| |||||||||
2020
|
| | | $ | 144 | | | | | $ | 382 | | | | | $ | 526 | | |
2021
|
| | | | 71 | | | | | | 301 | | | | | | 372 | | |
2022
|
| | | | — | | | | | | 158 | | | | | | 158 | | |
Thereafter
|
| | | | — | | | | | | — | | | | | | — | | |
Total lease payments
|
| | | | 215 | | | | | | 841 | | | | | | 1,056 | | |
Less: imputed interest
|
| | | | (10) | | | | | | (85) | | | | | | (95) | | |
Present value of lease liabilities
|
| | | $ | 205 | | | | | $ | 756 | | | | | $ | 961 | | |
Less: current portion of lease liabilities
|
| | | | (134) | | | | | | (327) | | | | | | (461) | | |
Noncurrent lease liabilities
|
| | | $ | 71 | | | | | $ | 429 | | | | | $ | 500 | | |
|
| | |
Capital
Lease Liabilities |
| |||
2019
|
| | | $ | 274 | | |
2020
|
| | | | 235 | | |
2021
|
| | | | 153 | | |
2022
|
| | | | 29 | | |
2023
|
| | | | — | | |
Thereafter
|
| | | | — | | |
Total lease payments
|
| | | | 691 | | |
Less: imputed interest
|
| | | | (104) | | |
Present value of lease liabilities
|
| | | $ | 587 | | |
Less: current portion of lease liabilities
|
| | | | (206) | | |
Non current lease liabilities
|
| | | $ | 381 | | |
| Purchase price consideration: | | | | | | | |
|
Promissory notes, at fair value
|
| | | $ | 7,151 | | |
|
Common shares liability, at fair value
|
| | | | 540 | | |
|
Total consideration
|
| | | | 7,691 | | |
| Assets acquired: | | | | | | | |
|
Equipment
|
| | | | 172 | | |
|
Intangibles
|
| | | | 4,662 | | |
|
Total assets acquired
|
| | | | 4,834 | | |
|
Goodwill
|
| | | | 2,857 | | |
| Total | | | | $ | 7,691 | | |
| | |
Average
|
| |
December 31, 2019
|
| ||||||||||||||||||
| | |
Life
(Years) |
| |
Gross
Assets |
| |
Accumulated
Amortization |
| |
Net
|
| ||||||||||||
Finite-lived intangible assets
|
| |
|
| |
|
| |
|
| |
|
| ||||||||||||
Doctor agreements
|
| | | | 10 | | | | | $ | 4,509 | | | | | $ | (72) | | | | | $ | 4,437 | | |
Non compete agreements
|
| | | | 2 | | | | | | 36 | | | | | | (3) | | | | | | 33 | | |
Total finite-lived intangible assets
|
| | | | | | | | | | 4,545 | | | | | | (75) | | | | | | 4,470 | | |
Indefinite-lived intangible assets
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Tradenames
|
| | | | NA | | | | | | 117 | | | | | | — | | | | | | 117 | | |
Total intangible assets
|
| | | | | | | | | $ | 4,662 | | | | | $ | (75) | | | | | $ | 4,587 | | |
|
2020
|
| | | $ | 472 | | |
|
2021
|
| | | | 466 | | |
|
2022
|
| | | | 451 | | |
|
2023
|
| | | | 451 | | |
|
2024
|
| | | | 451 | | |
|
Thereafter
|
| | | | 2,179 | | |
| | | | | $ | 4,470 | | |
|
| | |
December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Bank line of credit
|
| | | $ | 1,000 | | | | | $ | 274 | | |
Bank promissory note
|
| | | | 1,418 | | | | | | — | | |
| | | | | 2,418 | | | | | | 274 | | |
Face value of convertible debenture
|
| | | | 965 | | | | | | — | | |
Less: fair value ascribed to conversion feature and warrants
|
| | | | (564) | | | | | | — | | |
Plus: accretion of implied interest
|
| | | | 5 | | | | | | | | |
| | | | | 406 | | | | | | — | | |
Total debt
|
| | | | 2,824 | | | | | | 274 | | |
Less: current portion of debt
|
| | | | (1,664) | | | | | | (274) | | |
Long-term debt
|
| | | $ | 1,160 | | | | | $ | — | | |
| | |
Bank
Indebtedness |
| |
Convertible
Debt |
| ||||||
2020
|
| | | $ | 1,664 | | | | | $ | — | | |
2021
|
| | | | 693 | | | | | | — | | |
2022
|
| | | | 61 | | | | | | — | | |
2023
|
| | | | — | | | | | | 965 | | |
2024
|
| | | | — | | | | | | — | | |
Thereafter
|
| | | $ | 2,418 | | | | | $ | 965 | | |
Less: fair value ascribed to conversion feature and warrants
|
| | | | — | | | | | | (564) | | |
Plus: accretion and implied interest
|
| | | | — | | | | | | 5 | | |
| | | | $ | 2,418 | | | | | $ | 406 | | |
| | |
Options Outstanding
|
| |||||||||||||||||||||
| | |
Number of
Shares Subject to Options |
| |
Weighted
Average Exercise Price Per Share |
| |
Weighted
Average Remaining Contractual Life (in years) |
| |
Aggregate
Intrinsic Value |
| ||||||||||||
Balance at December 31, 2017
|
| | | | 3,260,000 | | | | | $ | 0.13 | | | | | | | | | |
|
| |||
Options granted
|
| | | | 800,000 | | | | | $ | 1.99 | | | | | | | | | | | | | | |
Options exercised
|
| | | | (50,000) | | | | | $ | 0.05 | | | | | | | | | | | | | | |
Options canceled / expired
|
| | | | (675,000) | | | | | $ | 0.86 | | | | | | | | | | | | | | |
Balance at December 31, 2018
|
| | | | 3,335,000 | | | | | $ | 0.48 | | | | | | | | | | | | | | |
Options granted
|
| | | | 1,501,000 | | | | | $ | 1.56 | | | | | | | | | | | | | | |
Options exercised
|
| | | | (650,000) | | | | | $ | 0.15 | | | | | | | | | | | | | | |
Options canceled / expired
|
| | | | (1,000,000) | | | | | $ | 0.05 | | | | | | | | | | | | | | |
Balance at December 31, 2019
|
| | | | 3,186,000 | | | | | $ | 1.12 | | | | | | 4.62 | | | | | $ | 1,266 | | |
Vested and exercisable at December 31, 2019
|
| | | | 1,802,333 | | | | | | 0.72 | | | | | | 4.72 | | | | | $ | 1,266 | | |
|
Options Outstanding
|
| |
Options Exercisable
|
| |||||||||||||||||||||
|
Number
Outstanding |
| |
Weighted
Average Remaining Contractual Life (in years) |
| |
Weighted
Average Exercise Price per Share |
| |
Number
Exercisable (in thousands) |
| |
Weighted
Average Exercise Price per Share |
| ||||||||||||
|
1,000,000
|
| | | | 5.65 | | | | | $ | 0.05 | | | | | | 1,000,000 | | | | | $ | 0.05 | | |
|
50,000
|
| | | | 0.19 | | | | | $ | 0.37 | | | | | | 50,000 | | | | | $ | 0.37 | | |
|
460,000
|
| | | | 4.76 | | | | | $ | 1.28 | | | | | | 92,000 | | | | | $ | 1.28 | | |
|
1,041,000
|
| | | | 4.05 | | | | | $ | 1.56 | | | | | | 307,000 | | | | | $ | 1.56 | | |
|
75,000
|
| | | | 8.05 | | | | | $ | 1.80 | | | | | | 75,000 | | | | | $ | 1.80 | | |
|
500,000
|
| | | | 3.75 | | | | | $ | 1.80 | | | | | | 233,333 | | | | | $ | 1.80 | | |
|
60,000
|
| | | | 2.82 | | | | | $ | 2.80 | | | | | | 45,000 | | | | | $ | 2.80 | | |
|
3,186,000
|
| | | | 4.62 | | | | | $ | 1.12 | | | | | | 1,802,333 | | | | | $ | 0.72 | | |
| | |
2019
|
| |
2018
|
| |||
Expected life (in years)
|
| | | | 5.0 | | | |
5 – 10
|
|
Risk-free interest rate
|
| | | | 2% | | | |
2%
|
|
Dividend yield
|
| | | | 0% | | | |
0%
|
|
Expected volatility
|
| | | | 100% | | | |
93% – 103%
|
|
|
Balance at December 31, 2017
|
| | | $ | 326 | | |
|
Gain on revaluaton
|
| | | | (80) | | |
|
Balance at December 31, 2018
|
| | | $ | 246 | | |
|
Loss on revaluation
|
| | | | 8 | | |
|
Reclassification option fair value at exercise to equity
|
| | | | (188) | | |
|
Balance at December 31, 2019
|
| | | $ | 66 | | |
| | | | ||
|
Risk free rate of return
|
| |
2.0%
|
|
|
Expected life
|
| |
3.2 – 3.8 years
|
|
|
Expected volatility
|
| |
101 – 103%
|
|
|
Expected dividend per share
|
| |
nil
|
|
|
Balance at December 31, 2017
|
| | | $ | 128 | | |
|
Gain on revaluaton
|
| | | | (62) | | |
|
Reclassification warrant fair value at exercise to equity
|
| | | | (10) | | |
|
Balance at December 31, 2018
|
| | | $ | 56 | | |
|
Loss on revaluation
|
| | | | 14 | | |
|
Reclassification warrant fair value at exercise to equity
|
| | | | (70) | | |
|
Balance at December 31, 2019
|
| | | $ | — | | |
|
Risk free rate of return
|
| |
2.40%
|
|
|
Expected life
|
| |
0.4 years
|
|
|
Expected volatility
|
| |
120%
|
|
|
Expected dividend per share
|
| |
nil
|
|
|
Exercise price
|
| |
$0.50 CAD
|
|
|
Stock price
|
| |
$2.05 CAD
|
|
|
Risk free rate of return
|
| |
1.60%
|
|
|
Expected life
|
| |
4 years
|
|
|
Expected volatility
|
| |
171%
|
|
|
Expected dividend per share
|
| |
nil
|
|
|
Exercise price
|
| |
$1.40
|
|
|
Stock price
|
| |
$1.31
|
|
| | |
Year Ended
December 31, 2019 |
| |
Year Ended
December 31, 2018 |
| ||||||
Net income
|
| | | $ | 2,716 | | | | | $ | 4,320 | | |
Basic weighted average common share outstanding
|
| | | | 34,402,607 | | | | | | 35,552,234 | | |
Basic earnings per common share
|
| | | $ | 0.08 | | | | | $ | 0.12 | | |
Net income
|
| | | $ | 2,716 | | | | | $ | 4,320 | | |
Basic weighted average common shares outstanding
|
| | | | 34,402,607 | | | | | | 35,552,234 | | |
Dilutive effect of stock options, warrants, and performance
shares |
| | | | 7,510,000 | | | | | | 9,384,000 | | |
Dilutive weighted average common shares outstanding
|
| | | | 41,912,607 | | | | | | 44,936,234 | | |
Diluted earnings per common share
|
| | | $ | 0.06 | | | | | $ | 0.10 | | |
| | |
2019
|
| |
2018
|
| ||||||
Income tax expense | | | | | | | | | | | | | |
Federal
|
| | | $ | — | | | | | $ | 369 | | |
State
|
| | | | (3) | | | | | | 75 | | |
| | | | | (3) | | | | | | 444 | | |
Deferred tax expense: | | | | | | | | | | | | | |
Federal
|
| | | | 690 | | | | | | 1,089 | | |
State
|
| | | | 119 | | | | | | 198 | | |
| | | | | 809 | | | | | | 1,287 | | |
Total income taxes.
|
| | | $ | 806 | | | | | $ | 1,731 | | |
|
| | |
2019
|
| |
2018
|
| ||||||
Deferred Tax Assets (Liabilities): | | | | | | | | | | | | | |
Noncurrent:
Fixed assets |
| | | $ | (133) | | | | | $ | (125) | | |
Stock-based and performance share compensation
|
| | | | 4,456 | | | | | | 4,180 | | |
Equity method investments
|
| | | | (835) | | | | | | (603) | | |
Accrual to cash adjustment
|
| | | | (6,916) | | | | | | (4,862) | | |
Section 163(J) limitation
|
| | | | 81 | | | | | | — | | |
Net operating loss and carryforward
|
| | | | 1,357 | | | | | | — | | |
Other
|
| | | | (20) | | | | | | — | | |
Total Noncurrent DTL
|
| | | $ | (2,010) | | | | | $ | (1,410) | | |
Valuation Allowance
|
| | | | — | | | | | | — | | |
Net Deferred Tax Liabilities
|
| | | $ | (2,010) | | | | | $ | (1,410) | | |
| | |
2019
|
| |
2018
|
| ||||||
Reconciliation of effective tax rate: | | | | | | | | | | | | | |
Federal taxes at statutory rate
|
| | | | 21.0% | | | | | | 21.0% | | |
State taxes, net of federal benefit
|
| | | | 3.7% | | | | | | 5.0% | | |
Permanent items
|
| | | | -1.6% | | | | | | 6.7% | | |
Provision to return adjustment and other
|
| | | | -0.2% | | | | | | -6.9% | | |
Deferred tax liability adjustments
|
| | | | 0.0% | | | | | | 2.7% | | |
Effective income tax rate
|
| | | | 22.9% | | | | | | 28.5% | | |
|
Balance, December 31, 2017
|
| | | $ | 2,260 | | |
|
Share of earnings
|
| | | | 1,167 | | |
|
Distributions
|
| | | | (1,171) | | |
|
Balance, December 31, 2018
|
| | | $ | 2,256 | | |
|
Share of earnings
|
| | | | 1,305 | | |
|
Distributions
|
| | | | (979) | | |
|
Acquisition
|
| | | | (222) | | |
|
Balance, December 31, 2019
|
| | | $ | 2,360 | | |
| | |
December 31,
|
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Due from PEs, net
|
| | | $ | 2,489 | | | | | $ | 400 | | |
Due from management and Board, net
|
| | | | 128 | | | | | | 2,566 | | |
Due from related parties, net
|
| | | $ | 2,617 | | | | | $ | 2,966 | | |
| | |
Balance at
Beginning of Year |
| |
Charged
(Credited) to Expenses |
| |
Charged
(Credited) to Other Accounts |
| |
Balance at End of
Year |
| ||||||||||||
Accounts receivable: | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for doubtful accounts | | | | | | | | | | | | | | | | | | | | | | | | | |
2019
|
| | | $ | 15,293 | | | | | $ | 26,433 | | | | | $ | (3,651) | | | | | $ | 38,075 | | |
2018
|
| | | $ | 117 | | | | | $ | 15,196 | | | | | $ | (20) | | | | | $ | 15,293 | | |
| Unaudited Condensed Consolidated Financial Statements of Assure Holdings Corp. | | | | | | | |
| | | | | F-35 | | | |
| | | | | F-36 | | | |
| | | | | F-37 | | | |
| | | | | F-38 | | | |
| | | | | F-39 | | |
| | |
September 30,
2020 |
| |
December 31,
2019 |
| ||||||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash | | | | $ | 148 | | | | | $ | 59 | | |
Accounts receivable, net
|
| | | | 15,020 | | | | | | 30,863 | | |
Other assets
|
| | | | 444 | | | | | | 168 | | |
Due from related parties
|
| | | | 3,730 | | | | | | 2,617 | | |
Total current assets
|
| | | | 19,342 | | | | | | 33,707 | | |
Equity method investments
|
| | | | 487 | | | | | | 2,360 | | |
Property, plant and equipment, net
|
| | | | 839 | | | | | | 871 | | |
Intangibles, net
|
| | | | 4,232 | | | | | | 4,587 | | |
Goodwill
|
| | | | 2,857 | | | | | | 2,857 | | |
Total assets
|
| | | $ | 27,757 | | | | | $ | 44,382 | | |
LIABILITIES AND SHAREHOLDERS’ (DEFICIT) EQUITY | | | | | | | | | | | | | |
LIABILITIES | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accounts payable and accrued liabilities
|
| | | $ | 1,639 | | | | | $ | 4,365 | | |
Current portion of debt
|
| | | | 4,100 | | | | | | 1,664 | | |
Current portion of lease liability
|
| | | | 515 | | | | | | 461 | | |
Current portion of acquisition liability
|
| | | | 3,880 | | | | | | 5,030 | | |
Other current liabilities
|
| | | | 181 | | | | | | 81 | | |
Total current liabilities
|
| | | | 10,315 | | | | | | 11,601 | | |
Lease liability, net of current portion
|
| | | | 503 | | | | | | 500 | | |
Debt, net of current portion
|
| | | | 3,147 | | | | | | 1,160 | | |
Acquisition debt, net of current portion
|
| | | | — | | | | | | 2,429 | | |
Provision for acquisition share issuance
|
| | | | 540 | | | | | | 540 | | |
Provision for fair value of stock options
|
| | | | 16 | | | | | | 66 | | |
Provision for performance share issuance
|
| | | | 16,011 | | | | | | 16,011 | | |
Deferred tax liability, net
|
| | | | 295 | | | | | | 2,010 | | |
Total liabilities
|
| | | | 30,827 | | | | | | 34,317 | | |
Commitments and contingencies (Note 13) | | | | ||||||||||
SHAREHOLDERS’ (DEFICIT) EQUITY | | | | | | | | | | | | | |
Common stock: $0.001 par value; 900,000,000 shares authorized, 34,971,237 and 34,795,313 shares issued and outstanding, respectively
|
| | | | 35 | | | | | | 35 | | |
Additional paid-in capital
|
| | | | 8,258 | | | | | | 6,682 | | |
Retained (deficit) earnings
|
| | | | (11,363) | | | | | | 3,348 | | |
Total shareholders’ (deficit) equity
|
| | | | (3,070) | | | | | | 10,065 | | |
Total liabilities and shareholders’ (deficit) equity
|
| | | $ | 27,757 | | | | | $ | 44,382 | | |
| | |
Three
Months Ended September |
| |
Nine
Months Ended September |
| ||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2020
|
| |
2019
|
| ||||||||||||
Revenue | | | | | | | | | | | | | | | | | | | | | | | | | |
Patient service fees, net
|
| | | $ | 2,965 | | | | | $ | 6,932 | | | | | $ | (6,342) | | | | | $ | 20,066 | | |
Hospital, management and other
|
| | | | 998 | | | | | | 1,019 | | | | | | 3,902 | | | | | | 2,318 | | |
Total revenue
|
| | | | 3,963 | | | | | | 7,951 | | | | | | (2,440) | | | | | | 22,384 | | |
Cost of revenues
|
| | | | (2,232) | | | | | | (1,275) | | | | | | (5,062) | | | | | | (4,466) | | |
Gross margin (loss)
|
| | | | 1,731 | | | | | | 6,676 | | | | | | (7,502) | | | | | | 17,918 | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
General and administrative
|
| | | | 1,957 | | | | | | 1,570 | | | | | | 5,853 | | | | | | 5,090 | | |
Sales and marketing
|
| | | | 349 | | | | | | 394 | | | | | | 801 | | | | | | 1,067 | | |
Depreciation and amortization
|
| | | | 249 | | | | | | 116 | | | | | | 769 | | | | | | 332 | | |
Total operating expenses
|
| | | | 2,555 | | | | | | 2,080 | | | | | | 7,423 | | | | | | 6,489 | | |
(Loss)/income from operations
|
| | | | (824) | | | | | | 4,596 | | | | | | (14,925) | | | | | | 11,429 | | |
Other (expenses)/income | | | | | | | | | | | | | | | | | | | | | | | | | |
(Loss)/earnings from equity method investments
|
| | | | (232) | | | | | | 285 | | | | | | (1,449) | | | | | | 1,192 | | |
Other (expense)/income
|
| | | | (3) | | | | | | (56) | | | | | | 50 | | | | | | 5 | | |
Interest, net
|
| | | | (285) | | | | | | (62) | | | | | | (783) | | | | | | (163) | | |
Total other (expense)/income
|
| | | | (520) | | | | | | 167 | | | | | | (2,182) | | | | | | 1,034 | | |
(Loss)/income before income taxes
|
| | | | (1,344) | | | | | | 4,763 | | | | | | (17,107) | | | | | | 12,463 | | |
Income tax benefit (expense)
|
| | | | 367 | | | | | | (1,094) | | | | | | 2,396 | | | | | | (3,022) | | |
Net (loss)/income
|
| | | $ | (977) | | | | | $ | 3,669 | | | | | $ | (14,711) | | | | | $ | 9,441 | | |
(Loss)/income per common share | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | $ | (0.03) | | | | | $ | 0.11 | | | | | $ | (0.42) | | | | | $ | 0.27 | | |
Diluted
|
| | | $ | (0.03) | | | | | $ | 0.09 | | | | | $ | (0.42) | | | | | $ | 0.23 | | |
Weighted average number of common share used in per share calculation – basic
|
| | | | 34,940,291 | | | | | | 34,411,980 | | | | | | 34,843,639 | | | | | | 34,608,711 | | |
Weighted average number of common share used in per share calculation – diluted
|
| | | | 34,940,291 | | | | | | 40,430,847 | | | | | | 34,843,639 | | | | | | 40,627,578 | | |
| | |
Common Stock
|
| |
Additional
paid-in capital |
| |
Retained
Earnings (Deficit) |
| |
Total
|
| ||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||
Balances, June 30, 2020
|
| | | | 34,795,313 | | | | | $ | 35 | | | | | $ | 8,028 | | | | | $ | (10,386) | | | | | $ | (2,323) | | |
Share based compensation
|
| | | | —— | | | | | | — | | | | | | 88 | | | | | | — | | | | | | 88 | | |
Common share issuance
|
| | | | 125,924 | | | | | | — | | | | | | 102 | | | | | | — | | | | | | 102 | | |
Settlement of payables
|
| | | | 50,000 | | | | | | — | | | | | | 40 | | | | | | — | | | | | | 40 | | |
Net loss
|
| | | | | | | | | | | | | | | | | | | | | | (977) | | | | | | (977) | | |
Balances, September 30, 2020
|
| | | | 34,971,237 | | | | | $ | 35 | | | | | $ | 8,258 | | | | | $ | (11,363) | | | | | $ | (3,070) | | |
|
| | |
Common Stock
|
| |
Additional
paid-in capital |
| |
Retained
Earnings (Deficit) |
| |
Total
|
| ||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||
Balances, December 31, 2019
|
| | | | 34,795,313 | | | | | $ | 35 | | | | | $ | 6,682 | | | | | $ | 3,348 | | | | | $ | 10,065 | | |
Share based compensation
|
| | | | — | | | | | | — | | | | | | 456 | | | | | | — | | | | | | 456 | | |
Tax impact of equity component of convertible debt issuance
|
| | | | — | | | | | | — | | | | | | (288) | | | | | | — | | | | | | (288) | | |
Equity component of convertible debt issuance
|
| | | | — | | | | | | — | | | | | | 1,220 | | | | | | — | | | | | | 1,220 | | |
Fair value of finders’ warrants
|
| | | | — | | | | | | — | | | | | | 46 | | | | | | — | | | | | | 46 | | |
Common share issuance
|
| | | | 125,924 | | | | | | — | | | | | | 102 | | | | | | — | | | | | | 102 | | |
Settlement of payables
|
| | | | 50,000 | | | | | | — | | | | | | 40 | | | | | | — | | | | | | 40 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (14,711) | | | | | | (14,711) | | |
Balances, September 30, 2020
|
| | | | 34,971,237 | | | | | $ | 35 | | | | | $ | 8,258 | | | | | $ | (11,363) | | | | | $ | (3,070) | | |
|
| | |
Common Stock
|
| |
Additional
paid-in capital |
| |
Retained
Earnings (Deficit) |
| |
Total
|
| ||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||
Balances, June 30, 2019
|
| | | | 34,145,313 | | | | | $ | 35 | | | | | $ | 5,456 | | | | | $ | 6,404 | | | | | $ | 11,895 | | |
Exercise of options
|
| | | | 500,000 | | | | | | 25 | | | | | | — | | | | | | — | | | | | | 25 | | |
Share based compensation
|
| | | | — | | | | | | — | | | | | | 204 | | | | | | — | | | | | | 204 | | |
Tax loss of stock option exercises
|
| | | | — | | | | | | — | | | | | | (164) | | | | | | — | | | | | | (164) | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | 3,669 | | | | | | 3,669 | | |
Balances, September 30, 2019
|
| | | | 34,645,313 | | | | | $ | 60 | | | | | $ | 5,496 | | | | | $ | 10,073 | | | | | $ | 15,629 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
Common Stock
|
| |
Additional
paid-in capital |
| |
Retained
Earnings (Deficit) |
| |
Total
|
| ||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||
Balances, December 31, 2018
|
| | | | 35,562,105 | | | | | $ | 36 | | | | | $ | 6,458 | | | | | $ | 632 | | | | | $ | 7,126 | | |
Settlement of related party receivable
|
| | | | (1,461,392) | | | | | | (1) | | | | | | (2,190) | | | | | | — | | | | | | (2,191) | | |
Exercise of warrants
|
| | | | 44,600 | | | | | | — | | | | | | 16 | | | | | | — | | | | | | 16 | | |
Exercise of options
|
| | | | 500,000 | | | | | | 25 | | | | | | — | | | | | | — | | | | | | 25 | | |
Reclassification warrant fair value at exercise to equity
|
| | | | — | | | | | | — | | | | | | 70 | | | | | | — | | | | | | 70 | | |
Share based compensation
|
| | | | — | | | | | | — | | | | | | 952 | | | | | | — | | | | | | 952 | | |
Tax loss of stock option exercises
|
| | | | — | | | | | | — | | | | | | 190 | | | | | | — | | | | | | 190 | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | 9,441 | | | | | | 9,441 | | |
Balances, September 30, 2019
|
| | | | 34,645,313 | | | | | $ | 60 | | | | | $ | 5,496 | | | | | $ | 10,073 | | | | | $ | 15,629 | | |
|
| | |
Nine Months Ended
|
| |||||||||
| | |
September 30, 2020
|
| |
September 30, 2019
|
| ||||||
Cash flows from operating activities | | | | | | | | | | | | | |
Net (loss)/income
|
| | | $ | (14,711) | | | | | $ | 9,441 | | |
Adjustments to reconcile net income/(loss) to net cash used in operating activities
|
| | | | | | | | | | | | |
Cash receipts from operations
|
| | | | 10,124 | | | | | | 6,744 | | |
Loss/(earnings) from equity method investments
|
| | | | 1,449 | | | | | | (1,192) | | |
Share based compensation
|
| | | | 456 | | | | | | 952 | | |
Tax impact of equity component of convertible debt issuance
|
| | | | (288) | | | | | | — | | |
Depreciation and amortization
|
| | | | 769 | | | | | | 332 | | |
Provision for broker warrant fair value
|
| | | | — | | | | | | 14 | | |
Provision for stock option fair value
|
| | | | (50) | | | | | | (19) | | |
Accretion of debt recorded at fair value
|
| | | | 619 | | | | | | — | | |
Change in operating assets and liabilities | | | | | | | | | | | | | |
Accounts receivable
|
| | | | 6,119 | | | | | | (21,046) | | |
Accounts payable and accrued liabilities
|
| | | | (3,126) | | | | | | 474 | | |
Due from related party, net
|
| | | | (1,113) | | | | | | (1,243) | | |
Income taxes
|
| | | | (1,715) | | | | | | 3,022 | | |
Other assets and liabilities
|
| | | | (209) | | | | | | (170) | | |
Cash (used in) operating activities
|
| | | | (1,676) | | | | | | (2,691) | | |
Cash flows from investing activities | | | | | | | | | | | | | |
Purchase of equipment and furniture
|
| | | | (33) | | | | | | (6) | | |
Repayment of acquisition debt
|
| | | | (3,934) | | | | | | (467) | | |
Distributions received from equity method investments
|
| | | | 424 | | | | | | 888 | | |
Cash (used in)/provided by investing activities
|
| | | | (3,543) | | | | | | 415 | | |
Cash flows from financing activities | | | | | | | | | | | | | |
Proceeds from exercise of stock options and warrants
|
| | | | — | | | | | | 41 | | |
Proceeds from promissory note
|
| | | | 1,978 | | | | | | 2,000 | | |
Repayment of promissory note
|
| | | | (1,418) | | | | | | (423) | | |
Proceeds from line of credit
|
| | | | 2,122 | | | | | | 600 | | |
Repayment of line of credit
|
| | | | (1,000) | | | | | | (274) | | |
Proceeds from convertible debenture
|
| | | | 2,485 | | | | | | — | | |
Proceeds from payroll protection program
|
| | | | 1,211 | | | | | | — | | |
Proceeds from the issuance of common shares
|
| | | | 102 | | | | | | — | | |
Principal payments of finance leases
|
| | | | (172) | | | | | | (250) | | |
Proceeds from sale leaseback
|
| | | | — | | | | | | 238 | | |
Cash provided by financing activities
|
| | | | 5,308 | | | | | | 1,932 | | |
Increase (decrease) in cash
|
| | | | 89 | | | | | | (344) | | |
Cash at beginning of period
|
| | | | 59 | | | | | | 831 | | |
Cash at end of period
|
| | | $ | 148 | | | | | $ | 487 | | |
Supplemental cash flow information | | | | | | | | | | | | | |
Interest paid
|
| | | $ | 145 | | | | | $ | 144 | | |
Income taxes paid
|
| | | $ | 62 | | | | | $ | 218 | | |
Supplemental non-cash flow information | | | | | | | | | | | | | |
Purchase of equipment with finance leases
|
| | | $ | 269 | | | | | $ | 520 | | |
Reclassification warrant fair value at exercise to equity
|
| | | $ | — | | | | | $ | 70 | | |
Related party receivable settled for common shares
|
| | | $ | — | | | | | $ | (2,191) | | |
| | |
September 30,
2020 |
| |
December 31,
2019 |
| ||||||
Prepaid insurance
|
| | | $ | 183 | | | | | $ | 104 | | |
Deposits | | | | | 73 | | | | | | 34 | | |
Income tax receivable
|
| | | | 147 | | | | | | — | | |
Other | | | | | 41 | | | | | | 30 | | |
Other current assets
|
| | | $ | 444 | | | | | $ | 168 | | |
| | |
September 30,
2020 |
| |
December 31,
2019 |
| ||||||
Office lease
|
| | | $ | 407 | | | | | $ | 267 | | |
Medical equipment
|
| | | | 2,112 | | | | | | 1,712 | | |
Computer equipment
|
| | | | 18 | | | | | | 18 | | |
Furniture and fixtures
|
| | | | 95 | | | | | | 85 | | |
Gross property, plant and equipment
|
| | | | 2,632 | | | | | | 2,082 | | |
Less: Accumulated depreciation and amortization
|
| | | | (1,793) | | | | | | (1,211) | | |
Property, plant and equipment, net
|
| | | $ | 839 | | | | | $ | 871 | | |
| | |
September 30,
2020 |
| |
December 31,
2019 |
| ||||||
Accounts payable
|
| | | $ | 1,413 | | | | | $ | 3,520 | | |
Accrued salaries and benefits
|
| | | | 144 | | | | | | 541 | | |
Other accrued liabilities
|
| | | | 82 | | | | | | 304 | | |
Accounts payable and accrued liabilities
|
| | | $ | 1,639 | | | | | $ | 4,365 | | |
| | |
September 30,
2020 |
| |
December 31,
2019 |
| ||||||
Insurance premiums financed
|
| | | $ | 145 | | | | | $ | 81 | | |
Other current liabilities
|
| | | | 36 | | | | | | — | | |
| | | | $ | 181 | | | | | $ | 81 | | |
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2020
|
| |
2019
|
| ||||||||||||
(Loss) for broker warrant fair value
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | (14) | | |
(Loss) gain for stock option fair value
|
| | | | (3) | | | | | | (56) | | | | | | 50 | | | | | | 19 | | |
Other (expense)/income
|
| | | $ | (3) | | | | | $ | (56) | | | | | $ | 50 | | | | | $ | 5 | | |
| | |
September 30, 2020
|
| |||
Right-to-use assets: | | | | | | | |
Operating
|
| | | $ | 186 | | |
Finance
|
| | | | 833 | | |
Total
|
| | | $ | 1,019 | | |
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2020
|
| |
2019
|
| ||||||||||||
Lease Cost: | | | | | | ||||||||||||||||||||
Operating leases
|
| | | $ | 64 | | | | | $ | 35 | | | | | $ | 171 | | | | | $ | 35 | | |
Finance leases
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Amortization of right-to-use assets
|
| | | | 84 | | | | | | 76 | | | | | | 256 | | | | | | 222 | | |
Interest on lease liabilities
|
| | | | 15 | | | | | | 15 | | | | | | 48 | | | | | | 57 | | |
Total finance lease cost
|
| | | | 99 | | | | | | 91 | | | | | | 304 | | | | | | 279 | | |
Total lease cost
|
| | | $ | 163 | | | | | $ | 126 | | | | | $ | 475 | | | | | $ | 314 | | |
| | |
As of September 30, 2020
|
|
Weighted average remaining lease term: | | | | |
Operating leases
|
| |
9 months
|
|
Finance leases
|
| |
17.6 months
|
|
Weighted average discount rate:
|
| | | |
Operating leases
|
| |
6.9%
|
|
Finance leases
|
| |
7.8%
|
|
| | |
Operating
Leases |
| |
Finance
Leases |
| |
Total
Lease Liabilities |
| |||||||||
2020 (remaining three months)
|
| | | $ | 65 | | | | | $ | 102 | | | | | $ | 167 | | |
2021
|
| | | | 127 | | | | | | 369 | | | | | | 496 | | |
2022
|
| | | | — | | | | | | 325 | | | | | | 325 | | |
2023
|
| | | | — | | | | | | 58 | | | | | | 58 | | |
2024
|
| | | | — | | | | | | 52 | | | | | | 52 | | |
Thereafter
|
| | | | — | | | | | | 23 | | | | | | 23 | | |
Total lease payments
|
| | | | 192 | | | | | | 929 | | | | | | 1,121 | | |
Less: imputed interest
|
| | | | (6) | | | | | | (96) | | | | | | (102) | | |
Present value of lease liabilities
|
| | | $ | 186 | | | | | | 833 | | | | | $ | 1,019 | | |
Less: current portion of lease liabilities
|
| | | | (186) | | | | | | (330) | | | | | | (516) | | |
Noncurrent operating lease liabilities
|
| | | $ | 0 | | | | | $ | 503 | | | | | $ | 503 | | |
| | |
Operating
Leases |
| |
Finance
Leases |
| |
Total
Lease Liabilities |
| |||||||||
2020
|
| | | $ | 144 | | | | | $ | 382 | | | | | $ | 526 | | |
2021
|
| | | | 71 | | | | | | 301 | | | | | | 372 | | |
2022
|
| | | | — | | | | | | 158 | | | | | | 158 | | |
Thereafter
|
| | | | — | | | | | | — | | | | | | — | | |
Total lease payments
|
| | | | 215 | | | | | | 841 | | | | | | 1,056 | | |
Less: imputed interest
|
| | | | (10) | | | | | | (85) | | | | | | (95) | | |
Present value of lease liabilities
|
| | | $ | 205 | | | | | $ | 756 | | | | | $ | 961 | | |
Less: current obligations under leases (accrued liabilities)
|
| | | | (134) | | | | | | (327) | | | | | | (461) | | |
Noncurrent operating lease liabilities
|
| | | $ | 71 | | | | | $ | 429 | | | | | $ | 500 | | |
| | |
Average
|
| |
September 30, 2020
|
| |
December 31, 2019
|
| |||||||||||||||||||||||||||||||||
| | |
Life
(Years) |
| |
Gross
Assets |
| |
Accumulated
Amortization |
| |
Net
|
| |
Gross
Assets |
| |
Accumulated
Amortization |
| |
Net
|
| |||||||||||||||||||||
Finite-lived intangible assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Doctor agreements
|
| | | | 10 | | | | | $ | 4,509 | | | | | $ | (410) | | | | | $ | 4,099 | | | | | $ | 4,509 | | | | | $ | (72) | | | | | $ | 4,437 | | |
Noncompete agreements
|
| | | | 2 | | | | | | 36 | | | | | | (20) | | | | | | 16 | | | | | | 36 | | | | | | (3) | | | | | | 33 | | |
Total finite-lived intangible assets
|
| | | | | | | | | | 4,545 | | | | | | (430) | | | | | | 4,115 | | | | | | 4,545 | | | | | | (75) | | | | | | 4,470 | | |
Indefinite-lived intangible assets
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Trade names
|
| | | | NA | | | | | | 117 | | | | | | — | | | | | | 117 | | | | | | 117 | | | | | | — | | | | | | 117 | | |
Total intangible assets
|
| | | | | | | | | $ | 4,662 | | | | | $ | (430) | | | | | $ | 4,232 | | | | | $ | 4,662 | | | | | $ | (75) | | | | | $ | 4,587 | | |
|
2020 (remaining 3 months)
|
| | | $ | 117 | | |
|
2021
|
| | | | 466 | | |
|
2022
|
| | | | 451 | | |
|
2023
|
| | | | 451 | | |
|
2024
|
| | | | 451 | | |
|
Thereafter
|
| | | | 2,179 | | |
| | | | | $ | 4,115 | | |
| | |
September 30,
2020 |
| |
December 31,
2019 |
| ||||||
Bank operating line
|
| | | $ | 1,978 | | | | | $ | 1,000 | | |
Bank term loan
|
| | | | 2,122 | | | | | | 1,418 | | |
Payroll protection program note
|
| | | | 1,211 | | | | | | — | | |
| | | | | 5,311 | | | | | | 2,418 | | |
Face value of convertible debenture
|
| | | | 3,450 | | | | | | 965 | | |
Less: fair value ascribed to conversion feature and warrants
|
| | | | (1,784) | | | | | | (564) | | |
Plus: accretion of implied interest
|
| | | | 270 | | | | | | 5 | | |
| | | | | 1,936 | | | | | | 406 | | |
Total debt
|
| | | | 7,247 | | | | | | 2,824 | | |
Less: current portion
|
| | | | (4,100) | | | | | | (1,664) | | |
Long-term debt
|
| | | $ | 3,147 | | | | | $ | 1,160 | | |
| | |
Bank Indebtedness
|
| |
Convertible Debt
|
| ||||||
Reminder 2020
|
| | | $ | 4,100 | | | | | $ | — | | |
2021
|
| | | | — | | | | | | — | | |
2022
|
| | | | — | | | | | | — | | |
2023
|
| | | | — | | | | | | 965 | | |
2024
|
| | | | — | | | | | | 2,485 | | |
Thereafter
|
| | | $ | 4,100 | | | | | $ | 3,450 | | |
Less: fair value ascribed to conversion feature and warrants
|
| | | | — | | | | | | (1,784) | | |
Plus: accretion and implied interest
|
| | | | — | | | | | | 270 | | |
| | | | $ | 4,100 | | | | | $ | 1,936 | | |
| | |
Options Outstanding
|
| |||||||||
| | |
Number of
Shares Subject to Options |
| |
Weighted
Average Exercise Price Per Share |
| ||||||
Balance at December 31, 2018
|
| | | | 3,335,000 | | | | | $ | 0.48 | | |
Options granted
|
| | | | 1,501,000 | | | | | $ | 1.56 | | |
Options exercised
|
| | | | (650,000) | | | | | $ | 0.15 | | |
Options canceled / expired
|
| | | | (1,000,000) | | | | | $ | 0.05 | | |
Balance at December 31, 2019
|
| | | | 3,186,000 | | | | | $ | 1.12 | | |
Options granted
|
| | | | 300,000 | | | | | $ | 0.90 | | |
Options canceled / expired
|
| | | | (101,000) | | | | | $ | 1.67 | | |
Balance at September 30, 2020
|
| | | | 3,385,000 | | | | | $ | 1.08 | | |
Vested and exercisable at September 30, 2020
|
| | | | 2,269,266 | | | | | | 0.93 | | |
| | | | | | | |
Expected life (in years)
|
| | | | 5 | | |
Risk-free interest rate
|
| | | | 3% | | |
Dividend yield
|
| | | | 0% | | |
Expected volatility
|
| | | | 107% | | |
| | | | | | | |
Balance at December 31, 2019
|
| | | $ | 66 | | |
Gain on revaluation
|
| | | | (50) | | |
Balance at September 30, 2020
|
| | | $ | 16 | | |
|
Risk free rate of return
|
| |
1.60%
|
|
|
Expected life
|
| |
4 years
|
|
|
Expected volatility
|
| |
171%
|
|
|
Expected dividend per share
|
| |
nil
|
|
|
Exercise price
|
| |
$1.40
|
|
|
Stock price
|
| |
$1.31
|
|
| | |
Number
|
| |
Weighted Average
Exercise Price |
| |
Weighted Average
Remaining life |
| |||||||||
Outstanding – December 31, 2019
|
| | |
|
392,755
|
| | | |
|
1.40
|
| | | | | | | |
Issued
|
| | | | 1,574,574 | | | | | | 1.19 | | | | | | | | |
Outstanding – September 30, 2020
|
| | | | 1,967,329 | | | | | | 1.23 | | | | | | 2.99 | | |
|
|
Risk free rate of return
|
| |
0.3% – 1.6%
|
|
|
Expected life
|
| |
3 – 4 years
|
|
|
Expected volatility
|
| |
89%
|
|
|
Expected dividend per share
|
| |
nil
|
|
|
Exercise price
|
| |
$0.67 – $1.90
|
|
|
Stock price
|
| |
$0.72 – $1.25
|
|
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2020
|
| |
2019
|
| ||||||||||||
Net (loss)/income
|
| |
$(977)
|
| |
$3,669
|
| |
$(14,711)
|
| |
$9,441
|
| ||||||||||||
Basic weighted average common share
outstanding |
| | | | 34,940,291 | | | | | | 34,411,980 | | | | | | 34,843,639 | | | | | | 34,608,711 | | |
Basic earnings/(loss) per common share
|
| | | $ | (0.03) | | | | | $ | 0.11 | | | | | $ | (0.42) | | | | | $ | 0.27 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net (loss)/income
|
| | | $ | (977) | | | | | $ | 3,669 | | | | | $ | (14,711) | | | | | $ | 9,441 | | |
Basic weighted average common shares
outstanding |
| | | | 34,940,291 | | | | | | 34,411,980 | | | | | | 34,843,639 | | | | | | 34,608,711 | | |
Dilutive effect of stock options, warrants,
and performance shares |
| | | | — | | | | | | 6,018,867 | | | | | | — | | | | | | 6,018,867 | | |
Dilutive weighted average common shares
outstanding |
| | | | 34,940,291 | | | | | | 40,430,847 | | | | | | 34,843,639 | | | | | | 40,627,578 | | |
Diluted (loss)/earnings per common share
|
| | | $ | (0.03) | | | | | $ | 0.09 | | | | | $ | (0.42) | | | | | $ | 0.23 | | |
|
Balance, December 31, 2019
|
| | | $ | 2,360 | | |
|
Share of losses
|
| | | | (1,449) | | |
|
Distrbutions
|
| | | | (424) | | |
|
Balance, September 30, 2020
|
| | | $ | 487 | | |
| | |
September 30,
2020 |
| |
December 31,
2019 |
| ||||||
Due from PEs, net
|
| | | $ | 3,381 | | | | | $ | 2,489 | | |
Due from management and Board, net
|
| | | | 349 | | | | | | 128 | | |
Due from related parties, net
|
| | | $ | 3,730 | | | | | $ | 2,617 | | |
| | |
Amount
|
| |||
SEC registration fee
|
| | | $ | 3,784 | | |
Legal fees and expenses
|
| | | $ | 40,000 | | |
Accountant’s fees and expenses
|
| | | $ | 15,000 | | |
Miscellaneous
|
| | | $ | 10,000 | | |
Total
|
| | | $ | 68,784 | | |
Grantee
|
| |
Award
|
| |
Exercise Price
|
| |
Expiry Date
|
| ||||||
Peter Csapo,
Chief Financial Officer |
| | | | 500,000 | | | | | | | | | |
Cancelled
|
|
Alex Rasmussen,
Executive Vice President of Operations |
| | | | 75,000 | | | | | $ | 1.80 | | | |
1/16/2028
|
|
| | | 38,000 | | | | | $ | 1.80 | | | |
10/1/2023
|
| ||
Martin Burian,
Director |
| | | | 75,000 | | | | | $ | 1.80 | | | |
10/1/2023
|
|
Kent Lund,
Director |
| | | | 75,000 | | | | | $ | 1.80 | | | |
Cancelled
|
|
John Farlinger,
Director |
| | | | 302,000 | | | | | $ | 1.80 | | | |
10/1/2023
|
|
Employee | | | | | 10,000 | | | | | $ | 1.80 | | | |
10/1/2023
|
|
Grantee
|
| |
Award
|
| |
Exercise Price
|
| |
Expiry Date
|
| |||||||||
Alex Rasmussen,
Executive Vice President of Operations |
| | | | 37,000 | | | | | $ | 1.56 | | | |
1/16/2024
|
| |||
| | | 50,000 | | | | | $ | 1.28 | | | |
10/4/2024
|
| |||||
Trent Carman,
Chief Financial Officer |
| | | | 157,000 | | | | | $ | 1.56 | | | |
Cancelled
|
| |||
Scott Page,
Director |
| | | | 150,000 | | | | | $ | 1.56 | | | |
Cancelled
|
| |||
Martin Burian,
Director |
| | | | 150,000 | | | | | $ | 1.56 | | | |
1/16/2024
|
| |||
Chris Rumana,
Director |
| | | | 150,000 | | | | | $ | 1.56 | | | |
1/16/2024
|
| |||
Steven Summer,
Director |
| | | | 150,000 | | | | | $ | 1.28 | | | |
10/4/2024
|
| |||
John Farlinger,
Director |
| | | | 117,000 | | | | | $ | 1.56 | | | | | | 10/4/2024 | | |
Other Employees(2)
|
| | | | 257,500 | | | | | $ | 1.56 | | | |
1/16/2024
|
| |||
| | | 160,000 | | | | | $ | 1.28 | | | |
10/4/2024
|
|
Grantee
|
| |
Award
|
| |
Exercise Price
|
| |
Expiry Date
|
| |||||||||
Alex Rasmussen,
Executive Vice President of Operations |
| | | | 75,000 | | | | | $ | 0.97 | | | | | | 12/10/2025 | | |
John Price,
Vice President of Finance |
| | | | 250,000 | | | | | $ | 0.97 | | | | | | 12/10/2025 | | |
Other Employees | | | | | 300,000 | | | | | $ | 0.90 | | | | | | 8/27/2025 | | |
| | | | | 240,000 | | | | | $ | 0.97 | | | | | | 12/10/2025 | | |
|
Signature
|
| |
Title
|
| |
Date
|
|
|
/s/ John Farlinger
John Farlinger
|
| |
Executive Chairperson and Chief
Executive Officer |
| |
January 29, 2021
|
|
|
/s/ Trent Carman
Trent Carman
|
| | Chief Financial Officer and Principal Accounting Officer | | |
January 29, 2021
|
|
|
/s/ Preston Parsons
Preston Parsons
|
| | Director and Founder | | |
January 29, 2021
|
|
|
/s/ Martin Burian
Martin Burian
|
| | Director | | |
January 29, 2021
|
|
|
/s/ Christopher Rumana
Christopher Rumana
|
| | Director | | |
January 29, 2021
|
|
|
/s/ Steven Summer
Steven Summer
|
| | Director | | |
January 29, 2021
|
|
Exhibit 5.1
[Letterhead of Dorsey & Whitney LLP]
January 29, 2021
Assure Holdings Corp.
4600 South Ulster Street, Suite 1225
Denver, Colorado 80237
Re: | Registration Statement on Form S-1 |
Ladies and Gentlemen:
We have acted as counsel to Assure Holdings Corp., a Nevada corporation (the “Company”), in connection with amendment number one to the Registration Statement on Form S-1 (SEC File No. 333-251829)(the “Registration Statement”) filed by the Company with the United States Securities and Exchange Commission (the “Commission”) under the United States Securities Act of 1933, as amended (the “Securities Act”), relating to the offer and sale by certain selling stockholders of up to 32,715,406 shares of common stock, par value $0.001 per share, of the Company, consisting of: (1) 16,357,703 shares of common stock of the Company (the “Unit Shares”) issued to the selling stockholders in connection with the Company’s brokered private placement offering of units that closed on December 1, 2020 (the “Unit Financing”); and (2) 16,357,703 shares of common stock of the Company (the “Unit Warrant Shares”) issuable upon the exercise of outstanding warrants issued to the selling stockholders in the Unit Financing (the “Unit Warrants”). The Unit Shares and the Unit Warrant Shares are collectively referred to herein as the “Shares”.
We have also examined such other documents and reviewed such questions of law as we have considered necessary and appropriate for the purposes of our opinions set forth below. In rendering our opinions, we have assumed the authenticity of all documents submitted to us as originals, the genuineness of all signatures and the conformity to authentic originals of all documents submitted to us as copies. We have also assumed the legal capacity for all purposes relevant hereto of all natural persons and, with respect to all parties to agreements or instruments relevant hereto other than the Company, that such parties had the requisite power and authority (corporate or otherwise) to execute, deliver and perform such agreements or instruments, that such agreements or instruments have been duly authorized by all requisite action (corporate or otherwise), executed and delivered by such parties and that such agreements or instruments are the valid, binding and enforceable obligations of such parties. As to questions of fact material to our opinions, we have relied upon certificates of officers of the Company and of public officials. We have assumed that the Shares will be sold as described in the Registration Statement.
Based on the foregoing, we are of the opinion that (i) the Unit Shares have been validly issued and are fully paid and non-assessable and (ii) the Unit Warrant Shares issuable upon the exercise of the Unit Warrants, upon issuance, delivery and payment therefor in accordance with the terms of the Unit Warrants will be validly issued, fully paid and nonassessable.
Our opinions expressed above are limited to Nevada general corporation law.
Assure Holdings Corp.
January 29, 2021
Page 2
We hereby consent to the filing of this opinion as an exhibit to the Registration Statement, and to the reference to our firm under the heading “Legal Matters” in the prospectus constituting part of the Registration Statement. In giving this consent, we do not admit that we are within the category of persons whose consent is required under Section 7 of the Securities Act or the rules and regulations of the Commission thereunder.
Very truly yours, | |
DORSEY & WHITNEY LLP | |
/s/ Dorsey & Whitney LLP |
KGS/JKB
Exhibit 23.2
Consent of Independent Registered Public Accounting Firm
We consent to the use in this Amendment No. 1 to the Registration Statement (No. 333-251829) on Form S-1 of Assure Holdings Corp. of our report dated May 29, 2020, except for Note 11 as to which the date is December 30, 2020 relating to the consolidated financial statements of Assure Holdings Corp., appearing in the Prospectus, which is part of this Registration Statement.
We also consent to the reference to our firm under the heading "Experts".
Our audits of the consolidated financial statements referred to in our aforementioned report also included the financial statement schedule of Assure Holdings Corp. This financial statement schedule is the responsibility of management. Our responsibility is to express an opinion based on our audits of the consolidated financial statements. In our opinion, such financial statement schedules, when considered in relation to the basic financial statements taken as a whole, present fairly in all material respects the information set forth therein.
Baker Tilly US, LLP
Irvine, California
January 29, 2021
1
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