QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
(Address of principal executive offices) | (Zip code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
ASSETS | June 30, 2020 | December 31, 2019 | ||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Restricted cash | ||||||||||||||
Accounts receivable, net of allowance for doubtful accounts of $ | ||||||||||||||
Other receivables | ||||||||||||||
Prepaid expenses and other current assets | ||||||||||||||
Total current assets | ||||||||||||||
Property and equipment: | ||||||||||||||
Medical equipment and facilities | ||||||||||||||
Office equipment | ||||||||||||||
Deposits and construction in progress | ||||||||||||||
Accumulated depreciation and amortization | ( | ( | ||||||||||||
Net property and equipment | ||||||||||||||
Goodwill | ||||||||||||||
Right of use assets | ||||||||||||||
Intangible asset | ||||||||||||||
Other assets | ||||||||||||||
Total assets | $ | $ | ||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | June 30, 2020 | December 31, 2019 | ||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable | $ | $ | ||||||||||||
Employee compensation and benefits | ||||||||||||||
Other accrued liabilities | ||||||||||||||
Income taxes payable | ||||||||||||||
Working capital payment due | ||||||||||||||
Current portion of lease liabilities | ||||||||||||||
Current portion of long-term debt | ||||||||||||||
Current portion of finance leases | ||||||||||||||
Total current liabilities | ||||||||||||||
Long-term lease liabilities, less current portion | ||||||||||||||
Long-term debt, less current portion | ||||||||||||||
Long-term finance leases, less current portion | ||||||||||||||
Deferred revenue, less current portion | ||||||||||||||
Deferred income taxes | ||||||||||||||
Shareholders' equity: | ||||||||||||||
Common stock, no par value ( | ||||||||||||||
Additional paid-in capital | ||||||||||||||
Retained earnings | ||||||||||||||
Total equity-American Shared Hospital Services | ||||||||||||||
Non-controlling interests in subsidiaries | ||||||||||||||
Total shareholders' equity | ||||||||||||||
Total liabilities and shareholders' equity | $ | $ |
Three Months ended June 30, | Six Months ended Jun 30, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Revenues | $ | $ | $ | $ | ||||||||||||||||||||||
Costs of revenue: | ||||||||||||||||||||||||||
Maintenance and supplies | ||||||||||||||||||||||||||
Depreciation and amortization | ||||||||||||||||||||||||||
Other direct operating costs | ||||||||||||||||||||||||||
Gross margin | ||||||||||||||||||||||||||
Selling and administrative expense | ||||||||||||||||||||||||||
Interest expense | ||||||||||||||||||||||||||
Operating (loss) income | ( | ( | ||||||||||||||||||||||||
Interest and other income | ||||||||||||||||||||||||||
(Loss) income before income taxes | ( | ( | ||||||||||||||||||||||||
Income tax (benefit) expense | ( | ( | ||||||||||||||||||||||||
Net (loss) income | ( | ( | ||||||||||||||||||||||||
Less: Net income attributable to non-controlling interest | ( | ( | ( | ( | ||||||||||||||||||||||
Net (loss) income attributable to American Shared Hospital Services | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||
Net (loss) income per share: | ||||||||||||||||||||||||||
(Loss) earnings per common share - basic | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||
(Loss) earnings per common share - diluted | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||
FOR THE THREE AND SIX-MONTH PERIODS ENDED JUNE 30, 2020 AND 2019 | ||||||||||||||||||||||||||||||||||||||||||||
Common Shares | Common Stock | Additional Paid-in Capital | Retained Earnings | Sub-Total ASHS | Non-controlling Interests in Subsidiaries | Total | ||||||||||||||||||||||||||||||||||||||
Balances at January 1, 2019 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Cash distributions to non-controlling interests | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||
Net income | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Balances at March 31, 2019 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Cash distributions to non-controlling interests | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||
Net income | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Balances at June 30, 2019 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
Balances at January 1, 2020 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Restricted common shares returned to plan | ( | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Cash distributions to non-controlling interests | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||
Net (loss) income | — | — | — | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
Balances at March 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Cash distributions to non-controlling interests | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||
Net (loss) income | — | — | — | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||
Balances at June 30, 2020 | $ | $ | $ | $ | $ | $ |
Six Months ended June 30, | |||||||||||
2020 | 2019 | ||||||||||
Operating activities: | |||||||||||
Net (loss) income | $ | ( | $ | ||||||||
Adjustments to reconcile net (loss) income to net cash from operating activities (excluding assets acquired and liabilities assumed): | |||||||||||
Depreciation and amortization | |||||||||||
Non cash lease expense | |||||||||||
Deferred income taxes | ( | ||||||||||
Stock-based compensation expense | |||||||||||
Accrued interest on lease financing | |||||||||||
Interest expense associated with lease liabilities | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Receivables | ( | ||||||||||
Prepaid expenses and other assets | |||||||||||
Accounts payable, accrued liabilities and deferred revenue | |||||||||||
Income taxes payable | ( | ||||||||||
Lease liability | ( | ( | |||||||||
Net insurance proceeds receivable | |||||||||||
Net cash provided by operating activities | |||||||||||
Investing activities: | |||||||||||
Payment for purchase of property and equipment | ( | ( | |||||||||
Payment for acquisition, net of cash acquired | ( | ||||||||||
Net cash used in investing activities | ( | ( | |||||||||
Financing activities: | |||||||||||
Principal payments on long-term debt | ( | ( | |||||||||
Principal payments on finance leases | ( | ( | |||||||||
Principal payments on short-term financing | ( | ||||||||||
Distributions to non-controlling interests | ( | ( | |||||||||
Proceeds from financing for acquisition | |||||||||||
Net cash used in financing activities | ( | ( | |||||||||
Net change in cash, cash equivalents, and restricted cash | |||||||||||
Cash, cash equivalents, and restricted cash at beginning of period | |||||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | $ | |||||||||
Supplemental cash flow disclosure: | |||||||||||
Cash paid during the period for: | |||||||||||
Interest | $ | $ | |||||||||
Income taxes paid | $ | $ | |||||||||
Schedule of non-cash investing and financing activities | |||||||||||
Lease reassessment right of use assets and lease liabilities | $ | $ | |||||||||
Right of use assets and lease liabilities | $ | $ | |||||||||
Interest capitalized to property and equipment | $ | $ | |||||||||
Acquisition of equipment with long-term debt financing | $ | $ | — | ||||||||
Acquisition of insurance with short-term financing | $ | $ | — | ||||||||
First working capital payment related to acquisition | $ | $ | — | ||||||||
Estimated subsequent working capital payment for acquisition | $ | $ | — |
June 30, | December 31, | |||||||||||||
2020 | 2019 | |||||||||||||
Medical equipment and facilities | $ | $ | ||||||||||||
Office equipment | ||||||||||||||
Deposits and construction in progress | ||||||||||||||
Deposits towards purchase of proton beam systems | ||||||||||||||
Accumulated depreciation | ( | ( | ||||||||||||
Net property and equipment | $ | $ |
Year ending December 31, | Operating Leases | ||||
2020 (excluding the six-months ended June 30, 2020) | $ | ||||
2021 | |||||
2022 | |||||
2023 | |||||
2024 | |||||
Total lease payments | |||||
Less imputed interest | ( | ||||
Total | $ |
Three Months ended June 30, | Six Months ended June 30, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Net (loss) income attributable to American Shared Hospital Services | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||
Weighted average common shares for basic earnings per share | ||||||||||||||||||||||||||
Diluted effect of stock options and restricted stock awards | ||||||||||||||||||||||||||
Weighted average common shares for diluted earnings per share | ||||||||||||||||||||||||||
Basic (loss) earnings per share | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||
Diluted (loss) earnings per share | $ | ( | $ | $ | ( | $ |
Stock Options | Grant Date Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Life (in Years) | Intrinsic Value | |||||||||||||||||||||||
Outstanding at January 1, 2020 | $ | $ | ||||||||||||||||||||||||
Granted | $ | $ | ||||||||||||||||||||||||
Forfeited | ( | $ | — | $ | ||||||||||||||||||||||
Outstanding at June 30, 2020 | $ | $ | ||||||||||||||||||||||||
Exercisable at June 30, 2020 | $ | $ | ||||||||||||||||||||||||
Outstanding at January 1, 2019 | $ | $ | ||||||||||||||||||||||||
Granted | $ | $ | ||||||||||||||||||||||||
Exercised | ( | $ | — | $ | — | |||||||||||||||||||||
Forfeited | ( | $ | — | $ | ||||||||||||||||||||||
Outstanding at June 30, 2019 | $ | $ | ||||||||||||||||||||||||
Exercisable at June 30, 2019 | $ | $ |
June 12, 2020 | ||||||||||||||
Cash and cash equivalents | $ | |||||||||||||
Accounts receivable | ||||||||||||||
Prepaid expense and other | ||||||||||||||
Building | ||||||||||||||
Medical equipment | ||||||||||||||
Purchased intangible assets | ||||||||||||||
Goodwill | ||||||||||||||
Total assets acquired | $ | |||||||||||||
Accounts payable | ( | |||||||||||||
Income taxes payable | ( | |||||||||||||
Deferred income taxes | ( | |||||||||||||
Employee compensation and benefits | ( | |||||||||||||
Total liabilities assumed | $ | ( | ||||||||||||
Consideration allocated to assets acquired and liabilities assumed | $ | |||||||||||||
First working capital payment | $ | ( | ||||||||||||
Estimated subsequent working capital payment | ( | |||||||||||||
Base purchase consideration | $ |
Fair Value | Useful Life (in Years) | |||||||||||||
Building | $ | |||||||||||||
Medical equipment | ||||||||||||||
Other fixed assets | ||||||||||||||
Total tangible assets | $ |
Payments Due by Period | ||||||||||||||||||||||||||||||||
Contractual Obligations | Total amounts committed | 2020 | 2021-2023 | 2024 | After 5 years | |||||||||||||||||||||||||||
Long-term debt (includes interest) | $ | 6,040,000 | $ | 801,000 | $ | 2,292,000 | $ | 1,838,000 | $ | 1,109,000 | ||||||||||||||||||||||
Finance leases (includes interest) | 10,849,000 | 1,878,000 | 7,604,000 | 1,367,000 | — | |||||||||||||||||||||||||||
Future equipment purchases | 45,110,000 | 400,000 | 10,710,000 | 34,000,000 | $ | — | ||||||||||||||||||||||||||
Equipment service contracts | 12,151,000 | 1,727,000 | 4,382,000 | 3,312,000 | 2,730,000 | |||||||||||||||||||||||||||
Acquisition working capital payments | 869,000 | 515,000 | 354,000 | — | $ | — | ||||||||||||||||||||||||||
Operating leases | 1,120,000 | 148,000 | 706,000 | 266,000 | $ | — | ||||||||||||||||||||||||||
Total contractual obligations | $ | 76,139,000 | $ | 5,469,000 | $ | 26,048,000 | $ | 40,783,000 | $ | 3,839,000 |
Incorporated by reference herein | ||||||||||||||||||||||||||
Exhibit Number | Description | Form | Exhibit | Date | ||||||||||||||||||||||
# | First Amendment to Lease Agreement for a Gamma Knife Unit (Perfexion upgrade) dated as of April 23, 2020 between GK Financing, LLC and Tufts Medical Center, Inc. | |||||||||||||||||||||||||
* | Certification of Chief Executive Officer pursuant to Rule 13a-14a/15d-14a, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |||||||||||||||||||||||||
* | Certification of Chief Financial Officer pursuant to Rule 13a-14a/15d-14a, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |||||||||||||||||||||||||
ǂ | Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |||||||||||||||||||||||||
101.INS | * | XBRL Instance Document | ||||||||||||||||||||||||
101.SCH | * | XBRL Taxonomy Extension Schema Document | ||||||||||||||||||||||||
101.CAL | * | XBRL Taxonomy Calculation Linkbase Document | ||||||||||||||||||||||||
101.DEF | * | XBRL Taxonomy Definition Linkbase Document | ||||||||||||||||||||||||
101.LAB | * | XBRL Taxonomy Label Linkbase Document | ||||||||||||||||||||||||
101.PRE | * | XBRL Taxonomy Extension Presentation Linkbase Document | ||||||||||||||||||||||||
104 | * | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline Instance XBRL | ||||||||||||||||||||||||
* | Filed herewith. | |||||||||||||||||||||||||
ǂ | Furnished herewith. | |||||||||||||||||||||||||
# | Portions of this exhibit (indicated therein by asterisks) have been omitted for confidential treatment. | |||||||||||||||||||||||||
Date: | August 14, 2020 | /s/ Ray Stachowiak | ||||||
Ray Stachowiak | ||||||||
Interim President and CEO | ||||||||
Date: | August 14, 2020 | /s/ Craig K. Tagawa | ||||||
Craig K. Tagawa | ||||||||
Senior Vice President | ||||||||
Chief Operating and Financial Officer |
GK FINANCING, LLC | TUFTS MEDICAL CENTER, INC. | |||||||
/s/ Craig K. Tagawa | /s/ Kristine M. Hanscom | |||||||
By: Craig K. Tagawa | By: Kristine M. Hanscom | |||||||
Its: Chief Executive Officer | Its: Sr. VP & Chief Financial Officer | |||||||
Annual Procedures Performed During the Extension Period. | Non-Medicare Fee Per Procedure | Medicare Fee Per Procedure1 | ||||||
[*****] | [*****] | [*****] | ||||||
[*****] | [*****] | [*****] | ||||||
[*****] | [*****] | [*****] | ||||||
[*****] | [*****] | [*****] |
August 14, 2020 | |||||
/s/ Ray Stachowiak | |||||
Ray Stachowiak | |||||
Interim President and CEO |
August 14, 2020 | |||||
/s/ Craig K. Tagawa | |||||
Craig K. Tagawa | |||||
Chief Financial Officer |
/s/ Ray Stachowiak | |||||
Ray Stachowiak | |||||
Interim President and CEO | |||||
/s/ Craig K. Tagawa | |||||
Craig K. Tagawa | |||||
Chief Financial Officer |
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) [Parenthetical] - USD ($) $ in Thousands |
Jun. 30, 2020 |
Mar. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
---|---|---|---|---|
Allowance for doubtful accounts (in dollars) | $ 100 | $ 100 | ||
Common stock, shares authorized (in shares) | 10,000,000 | 10,000,000 | ||
Common Stock | ||||
Common stock, shares issued (in shares) | 5,691,000 | 5,688,000 | 5,817,000 | 5,714,000 |
Common stock, shares outstanding (in shares) | 5,691,000 | 5,688,000 | 5,817,000 | 5,714,000 |
Basis of Presentation |
6 Months Ended |
---|---|
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments necessary for the fair presentation of American Shared Hospital Services’ consolidated financial position as of June 30, 2020, the results of its operations for the three and six-month periods ended June 30, 2020 and 2019, and the cash flows for the three and six-month periods ended June 30, 2020 and 2019. The results of operations for the three and six-months ended June 30, 2020 are not necessarily indicative of results on an annualized basis. Consolidated balance sheet amounts as of December 31, 2019 have been derived from audited consolidated financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2019 included in American Shared Hospital Services’ Annual Report on Form 10-K filed with the Securities and Exchange Commission. These condensed consolidated financial statements include the accounts of American Shared Hospital Services and its subsidiaries (the “Company”) as follows: the Company wholly-owns the subsidiaries American Shared Radiosurgery Services (“ASRS”), PBRT Orlando, LLC (“Orlando”), OR21, Inc., and MedLeader.com, Inc. (“MedLeader”); the Company is the majority owner of Long Beach Equipment, LLC (“LBE”); ASRS is the majority-owner of GK Financing, LLC (“GKF”) which wholly-owns the subsidiary Instituto de Gamma Knife del Pacifico S.A.C. (“GKPeru”) and HoldCo GKC S.A. (“HoldCo”). GKF is the majority owner of the subsidiaries Albuquerque GK Equipment, LLC (“AGKE”), Jacksonville GK Equipment, LLC (“JGKE”) and Gamma Knife Center Ecuador S.A. (“GKCE”). The Company (through ASRS) and Elekta AB, the manufacturer of the Gamma Knife (through its wholly-owned United States subsidiary, GKV Investments, Inc.), entered into an operating agreement and formed GKF. As of June 30, 2020, GKF provides Gamma Knife units to fifteen medical centers in the United States in the states of Arkansas, California, Florida, Illinois, Indiana, Massachusetts, Mississippi, Nebraska, New Mexico, New York, Ohio, Oregon, Tennessee, and Texas. GKF also owns and operates single-unit Gamma Knife facilities in Lima, Peru and Guayaquil, Ecuador. The Company through its wholly-owned subsidiary, Orlando, provided proton beam radiation therapy (“PBRT”) and related equipment to a customer in the United States. The Company formed the subsidiaries GKPeru for the purposes of expanding its business internationally; Orlando and LBE to provide proton beam therapy equipment and services in Orlando, Florida and Long Beach, California, respectively; and AGKE and JGKE to provide Gamma Knife equipment and services in Albuquerque, New Mexico and Jacksonville, Florida, respectively. AGKE began operations in the second quarter of 2011 and JGKE began operations in the fourth quarter of 2011. Orlando treated its first patient in April 2016. GKPeru treated its first patient in July 2017. LBE is not expected to generate revenue within the next two years. On June 12, 2020, GKF purchased approximately 98% of the total outstanding shares of GKCE, from GKCE’s majority shareholders (the “Acquisition”). The Company subsequently executed agreements to acquire approximately 1.3% of the total outstanding shares of GKCE and intends to acquire the remaining 0.7% at a later date. The base purchase price for the Acquisition, including acquisition of the minority shares was approximately $2,000,000. This purchase price was paid with $575,000 in cash and a $1,425,000 loan from the United States International Development Finance Corporation (“DFC”). The purchase price is subject to certain post-closing adjustments, including adjustment for GKCE's working capital and excess cash. The DFC loan is denominated in U.S. dollars, which is also the currency of Ecuador. See “Note 9. GKCE Acquisition” for further discussion. The Company continues to develop its design and business model for The Operating Room for the 21st CenturySM through its 50% owned OR21, LLC (“OR21 LLC”). The remaining 50% is owned by an architectural design company. OR21 LLC is not expected to generate significant revenue for at least the next two years. MedLeader was formed to provide continuing medical education online and through videos for doctors, nurses, and other healthcare workers. This subsidiary is not operational at this time. All significant intercompany accounts and transactions have been eliminated in consolidation. The Company is subject to risks and uncertainties as a result of the COVID-19 pandemic and the extent and duration of the future impact on the Company's business is highly uncertain and difficult to predict. The COVID-19 pandemic has adversely impacted, and is likely to further adversely impact, nearly all aspects of the Company’s business and markets, including its employees, operations, contractors, customers, government and third party payors and others. The full extent to which the pandemic will directly or indirectly impact the Company's business, results of operations and financial condition will depend on future developments that are highly uncertain and difficult to predict.Accounting Pronouncements Issued and Adopted In February 2018, the FASB issued ASU No. 2018-03 Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2018-03”), which clarifies certain aspects of ASU 2016-1. These are: equity securities without a readily determinable fair value – discontinuation, equity securities without a readily determinable fair value – adjustments, forward contracts and purchased options, presentation requirements for certain fair value option liabilities, fair value option liabilities denominated in a foreign currency, and transition guidance for equity securities without a readily determinable fair value. In August 2018, the FASB issued ASU No. 2018-13 Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements to Fair Value Measurement (“ASU 2018-13”), which amended the effective date and other certain measurement aspects of ASU 2018-03. The new guidance is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2019. The Company adopted ASU 2018-03 and ASU 2018-13 on January 1, 2020. There was no significant impact on its condensed consolidated financial statements and related disclosures. Accounting Pronouncements Issued and Not Yet Adopted In December 2019, the FASB issued ASU 2019-12 Income taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”) which removes specific exceptions to the general principles in Topic 740 and eliminates the need for an organization to analyze whether the following apply in a given period: exception to the incremental approach for intraperiod tax allocation; exceptions to accounting for basis differences when there are ownership changes in foreign investments; exception in interim period income tax accounting for year-to-date losses that exceed anticipated losses. The new guidance is effective for fiscal years and interim periods beginning after December 15, 2020. The Company is currently evaluating ASU 2019-12 to determine the impact it may have on its consolidated financial statements.
|
Property and Equipment |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation for Gamma Knife, Image Guided Radiation Therapy (“IGRT”), and other equipment is determined using the straight-line method over the estimated useful lives of the assets, which for medical and office equipment is generally 3 – 10 years, and after accounting for salvage value on the equipment where indicated. Salvage value is based on the estimated fair value of the equipment at the end of its useful life. Depreciation for PBRT equipment is determined using the modified units of production method, which is a function of both time and usage of the equipment. This depreciation method allocates costs considering the projected volume of usage through the useful life of the PBRT unit, which has been estimated at 20 years. The estimated useful life of the PBRT unit is consistent with the estimated economic life of 20 years. The following table summarizes property and equipment as of June 30, 2020 and December 31, 2019:
As of June 30, 2020, approximately $3,455,000 of the net property and equipment balance is outside of the United States. As of June 30, 2020, the Company has two idle Gamma Knife units with a cumulative net book value of $943,000. There are currently no commitments to place into service or trade in these units during 2020.
|
Long-Term Debt Financing |
6 Months Ended |
---|---|
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Long-term Debt Financing | Long-Term Debt FinancingLong-term debt consists of seven notes with three financing companies collateralized by the Gamma Knife equipment, the individual customer contracts, and related accounts receivable at June 30, 2020. The Company’s loan with DFC for the Acquisition was obtained through the Company’s wholly-owned subsidiary, HoldCo and is guaranteed by GKF. As of June 30, 2020, long-term debt on the Condensed Consolidated Balance Sheets was $5,291,000. See disclosure of future payments below under the heading “Commitments”. |
Finance Leases |
6 Months Ended |
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Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Finance Leases | Finance LeasesFinance lease obligations consist of seven leases with two financing companies, collateralized by Gamma Knife and PBRT equipment, the individual customer contracts, and related accounts receivable at June 30, 2020. As of June 30, 2020, obligations under finance leases on the Condensed Consolidated Balance Sheets were $9,641,000. See disclosure of future payments below under the heading “Commitments”. |
Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases The Company determines if a contract is a lease at inception. Under ASC 842 Leases (“ASC 842”), the Company is a lessor of equipment to various customers. Leases that commenced prior to ASC 842 adoption date were classified as operating leases under historical guidance. As the Company has elected the package of practical expedients allowing to not reassess lease classification, these leases are classified as operating leases under ASC 842 as well. All of the Company’s lessor arrangements entered into after ASC 842 adoption are also classified as operating leases. Some of these lease terms have an option to extend the lease after the initial term, but do not contain the option to terminate early or purchase the asset at the end of the term. The Company’s Gamma Knife and PBRT contracts with hospitals are classified as operating leases under ASC 842. The related equipment is included in medical equipment and facilities on the Company’s condensed consolidated balance sheets. As all income from the Company’s lessor arrangements is solely based on procedure volume, all income is considered variable payments not dependent on an index or a rate. As such, the Company does not measure future operating lease receivable. The Company’s lessee operating leases are accounted for as right-of-use (“ROU”) assets, other current liabilities, and lease liabilities on the condensed consolidated balance sheets. Operating lease ROU assets and liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The Company’s operating lease contracts do not provide an implicit rate for calculating the present value of future lease payments. The Company determined its incremental borrowing rate, to be in the range of approximately 4.0% and 6.0%, by using available market rates and expected lease terms. The operating lease ROU assets and liabilities also include any lease payments made and excludes lease incentives and initial direct costs incurred. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company’s lessee operating lease agreements are for administrative office space and related equipment, and the agreement to lease clinic space for its stand-alone facility in Lima, Peru. These leases have remaining lease terms between 3 and 4 years, some of which include options to renew or extend the lease. As of June 30, 2020, operating ROU assets and liabilities were $1,031,000. During the six-month period ended June 30, 2020, the Company elected to not renew its lease for a satellite office in Fairfield, California. The Company previously included the renewal term in its assessment of the lease term for the ROU asset and liability. The Company accounted for this change as a lease reassessment under ASC 842. At the reassessment date, the remaining lease balance was not material to the Company's condensed consolidated balance sheets and the Company wrote off the related ROU assets and liabilities of $67,000. During the three-month period ended June 30, 2020, the Company agreed to a rent increase for its clinic space for its stand-alone facility in Lima, Peru. The rent increase was effective as of January 1, 2020 and the Company increased the related ROU assets and liabilities by $135,000. The following table summarizes maturities of lessee operating lease liabilities as of June 30, 2020:
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Per Share Amounts |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per Share Amounts | Per Share Amounts Per share information has been computed based on the weighted average number of common shares and dilutive common share equivalents outstanding. The computation for the three and six-month periods ended June 30, 2020 excluded approximately 420,000 and 410,000, respectively, of the Company’s stock options because the exercise price of the options was higher than the average market price during those periods. The computation for the three and six-month periods ended June 30, 2019 excluded approximately 181,000 and 513,000 respectively, of the Company's stock options because the exercise price of the options was higher than the average market price during those periods. During the three-month period ended June 30, 2020, the Company appointed an Interim President and Chief Executive Officer (“Interim CEO”). As part of his Offer Letter, the Interim CEO was granted 50,000 restricted stock awards that vest in full upon the earlier of August 3, 2020 and the appointment of his successor. In the event the Interim CEO continues to serve the Company after August 3, 2020, he will be granted additional restricted stock awards totaling 10,000 common shares, which will vest in full at the end of each 30-day period after August 3, 2020. The unvested restricted stock awards are included in the denominator for diluted earnings per share for the three and six-month periods ended June 30, 2020. On March 31, 2020, the Company’s Award Agreements (as defined below) expired and the unvested performance share awards were returned to the Company’s stock incentive plan - see Note 7 for further discussion. Based on the guidance provided in accordance with ASC 260 Earnings Per Share (“ASC 260”), the weighted average common shares for basic earnings per share, for the three and six-month periods ended June 30, 2019, excluded the weighted average impact of the unvested performance share awards. These awards were legally outstanding but not deemed participating securities and therefore were excluded from the calculation of basic earnings per share. The unvested shares were also excluded from the denominator for diluted earnings per share because they were considered contingent shares not deemed probable as of June 30, 2019. The following table sets forth the computation of basic and diluted earnings per share for the three and six-month periods ended June 30, 2020 and 2019:
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Stock-based Compensation |
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Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based Compensation | Stock-based Compensation In June 2010, the Company’s shareholders approved an amendment and restatement of the Company’s stock incentive plan, renaming it the Incentive Compensation Plan (the “Plan”), and among other things, increasing the number of shares of the Company’s common stock reserved for issuance under the Plan to 1,630,000. The Plan provides that the shares reserved under the Plan are available for issuance to officers of the Company, other key employees, non-employee directors, and advisors. The Plan is a successor to the Company’s previous plans, and any shares awarded and outstanding under those plans were transferred to the Plan. No further grants or share issuances will be made under the previous plans. On June 21, 2019, the Company’s shareholders approved an amendment and restatement of the Plan in order to extend the term of the Plan by two years to February 22, 2022. Stock-based compensation expense associated with the Company’s stock options to employees is calculated using the Black-Scholes valuation model. The Company’s stock awards have characteristics significantly different from those of traded options, and changes in the subjective input assumptions can materially affect the fair value estimates. The estimated fair value of the Company’s option grants is estimated using assumptions for expected life, volatility, dividend yield, and risk-free interest rate which are specific to each award. The estimated fair value of the Company’s options is amortized over the period during which an employee is required to provide service in exchange for the award (requisite service period), usually the vesting period. Accordingly, stock-based compensation cost before income tax effect for the Company’s options and restricted stock awards in the amount of $53,000 and $109,000 is reflected in net income for the three and six-month periods ended June 30, 2020 compared to $53,000 and $108,000 in the same periods of the prior year, respectively. At June 30, 2020, there was approximately $19,000 of unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the Plan, excluding unrecognized compensation cost associated with the performance share awards, discussed below. This cost is expected to be recognized over a period of approximately three years. On January 4, 2017, the Company entered into a Performance Share Award Agreement with three executive officers of the Company (the “Award Agreements”) for 161,766 restricted stock awards which vest upon the achievement of certain performance metrics. The Award Agreements expired on March 31, 2020. Based on the guidance in ASC 718 Stock Compensation (“ASC 718”), the Company concluded these were performance-based awards with vesting criteria tied to performance metrics. As of December 31, 2018, the Company achieved one of those certain performance metrics under the Award Agreements and recognized stock compensation expense of approximately $108,000 related to these awards. The unrecognized stock-based compensation expense for these awards was approximately $434,000 and the unvested awards of approximately 129,000 shares were returned to the Plan as of March 31, 2020. The following table summarizes stock option activity for the six-month periods ended June 30, 2020 and 2019:
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Income Taxes |
6 Months Ended |
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Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company generally calculates its effective income tax rate at the end of an interim period using an estimate of the annualized effective income tax rate expected to be applicable for the full fiscal year. However, when a reliable estimate of the annualized effective income tax rate cannot be made, the Company computes its provision for income taxes using the actual effective income tax rate for the results of operations reported within the year-to-date periods. The Company’s effective income tax rate is highly influenced by relative income or losses reported and the amount of the nondeductible stock-based compensation associated with grants of its common stock options and from the results of foreign operations. A small change in estimated annual pretax income (loss) can produce a significant variance in the annualized effective income tax rate given the expected amount of these items. As a result, the Company has computed its provision for income taxes for the three and six-month periods ended June 30, 2020 by applying the actual effective tax rates to income or (loss) reported within the condensed consolidated financial statements through those periods. On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”). The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. Under ASC 740 Income Taxes, the effects of new legislation are recognized upon enactment. Accordingly, the effects of the CARES Act were effective for the Company for the three-month reporting period ended March 31, 2020, and for subsequent reporting periods. The CARES Act did not have a material impact on the financial statements.
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GKCE Acquisition |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GKCE Acquisition | GKCE Acquisition On June 18, 2019, the Company entered into a Stock Purchase Agreement (the “Agreement”) to acquire Gamma Knife Center Ecuador S.A. (“GKCE”) from GKCE’s selling majority shareholders. GKCE is a well-established Gamma Knife operation founded in 2009 as a private clinic to introduce advanced stereotactic radiosurgery into Ecuador and continues to operate the only Gamma Knife unit in the country. The Company acquired GKCE for the continued expansion of its business internationally. On June 12, 2020 (the “Closing Date”), the Company acquired approximately 98% of the total outstanding shares of GKCE. The Company subsequently executed agreements to acquire approximately 1.3% of the total outstanding shares of GKCE and intends to acquire the remaining 0.7% at a later date. The fair value of the non-controlling interests (“NCI”) on the Closing Date was approximately $58,000, which was consistent with the purchase price in the executed NCI agreements. The total purchase consideration for 100% of the outstanding shares of GKCE was $2,869,000, including $2,000,000 of base purchase price, subject to certain price adjustments for current assets and liabilities and tax withholding. The base purchase price of $2,000,000 was paid with $575,000 of cash and a $1,425,000 loan from the United States International Development Finance Corporation (“DFC”). The DFC loan is denominated in U.S. dollars, which is also the currency of Ecuador. The price adjustments will be paid by the Company in the post-closing period with the adjustments related to the amount of working capital that GKCE had as of the Closing Date. The first price adjustment for working capital as of the Closing Date was approximately $515,000. The Company estimates an additional contingent consideration of approximately $354,000 will be remitted to the seller based on the collection of Closing Date accounts receivable balances, net of related costs, during the three-month, six-month and 12-month periods after the Closing Date. The Company reviewed historical patient treatments, invoice, and collection data from GKCE to determine an appropriate estimate of the contingent consideration at the Closing Date. The acquisition has been accounted for according to ASC 805 Business Combinations using the acquisition method. Under the acquisition method of accounting, all assets acquired, including goodwill and other intangible assets, should be stated on the financial statements at fair value. The allocation of purchase price consideration is preliminary, pending the completion of the fair value of certain tangible, intangible assets, and residual goodwill. During the measurement period, which can be no more than one year from the Closing Date, the Company expects to continue to obtain information to assist in determining the final fair value of assets acquired. The assets acquired were recorded based on valuations derived from estimated fair value assessments and assumptions used by the Company. Thus, the provisional measurements of fair value discussed below are subject to change. The Company expects to finalize the valuation as soon as practicable, but no later than one year from the Closing Date. While the Company believes its estimates and assumptions underlying the valuations are reasonable, different estimates and assumptions could result in different valuations assigned to the individual assets acquired, and the resulting amount of goodwill. The major classes of assets and liabilities to which the Company has preliminarily allocated the fair value of purchase price consideration were as follows:
The Company has allocated the purchase price of GKCE to the tangible assets, liabilities, and intangible asset acquired, based on their estimated fair values. Goodwill of $1,265,000 represents the excess of the purchase price consideration over the fair value of the identifiable tangible and intangible assets assumed of $801,000. The Company believes the amount of goodwill resulting from the acquisition is primarily attributable to expected synergies from an assembled and trained workforce and enhanced opportunities for growth and innovation. The goodwill resulting from the acquisition is not tax deductible. The preliminary value of the acquired tangible assets acquired are as follows:
The Company also acquired intangible assets with a fair value of $78,000. The intangible asset identified was GKCE's trade name and the Company assigned an indefinite useful life to the asset. The Company incurred costs related to the acquisition of approximately $93,000 during the six-month period ended June 30, 2020. All acquisition related costs were expensed as incurred and have been recorded in selling and administrative expense in the Company's condensed consolidated statement of operations. The revenue and earnings of GKCE have been included in the Company’s condensed consolidated results since the Closing Date and are not material to the Company’s consolidated financial results. Historical financial statements and pro forma results of the operations of GKCE as if the Acquisition occurred earlier than the Closing Date have not been presented, as the applicable significance thresholds are not exceeded by the Acquisition and the corresponding requirements to provide historical financial statements and corresponding pro forma financial information are not applicable to the Acquisition. In addition, the Company believes that the financial impact of the Acquisition to the Company’s condensed consolidated financial statements is not material and such historical financial information and pro forma financial information would not be meaningful for investors and financial statement users.
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Basis of Presentation (Policies) |
6 Months Ended |
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Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments necessary for the fair presentation of American Shared Hospital Services’ consolidated financial position as of June 30, 2020, the results of its operations for the three and six-month periods ended June 30, 2020 and 2019, and the cash flows for the three and six-month periods ended June 30, 2020 and 2019. The results of operations for the three and six-months ended June 30, 2020 are not necessarily indicative of results on an annualized basis. Consolidated balance sheet amounts as of December 31, 2019 have been derived from audited consolidated financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2019 included in American Shared Hospital Services’ Annual Report on Form 10-K filed with the Securities and Exchange Commission. These condensed consolidated financial statements include the accounts of American Shared Hospital Services and its subsidiaries (the “Company”) as follows: the Company wholly-owns the subsidiaries American Shared Radiosurgery Services (“ASRS”), PBRT Orlando, LLC (“Orlando”), OR21, Inc., and MedLeader.com, Inc. (“MedLeader”); the Company is the majority owner of Long Beach Equipment, LLC (“LBE”); ASRS is the majority-owner of GK Financing, LLC (“GKF”) which wholly-owns the subsidiary Instituto de Gamma Knife del Pacifico S.A.C. (“GKPeru”) and HoldCo GKC S.A. (“HoldCo”). GKF is the majority owner of the subsidiaries Albuquerque GK Equipment, LLC (“AGKE”), Jacksonville GK Equipment, LLC (“JGKE”) and Gamma Knife Center Ecuador S.A. (“GKCE”). The Company (through ASRS) and Elekta AB, the manufacturer of the Gamma Knife (through its wholly-owned United States subsidiary, GKV Investments, Inc.), entered into an operating agreement and formed GKF. As of June 30, 2020, GKF provides Gamma Knife units to fifteen medical centers in the United States in the states of Arkansas, California, Florida, Illinois, Indiana, Massachusetts, Mississippi, Nebraska, New Mexico, New York, Ohio, Oregon, Tennessee, and Texas. GKF also owns and operates single-unit Gamma Knife facilities in Lima, Peru and Guayaquil, Ecuador. The Company through its wholly-owned subsidiary, Orlando, provided proton beam radiation therapy (“PBRT”) and related equipment to a customer in the United States. The Company formed the subsidiaries GKPeru for the purposes of expanding its business internationally; Orlando and LBE to provide proton beam therapy equipment and services in Orlando, Florida and Long Beach, California, respectively; and AGKE and JGKE to provide Gamma Knife equipment and services in Albuquerque, New Mexico and Jacksonville, Florida, respectively. AGKE began operations in the second quarter of 2011 and JGKE began operations in the fourth quarter of 2011. Orlando treated its first patient in April 2016. GKPeru treated its first patient in July 2017. LBE is not expected to generate revenue within the next two years. On June 12, 2020, GKF purchased approximately 98% of the total outstanding shares of GKCE, from GKCE’s majority shareholders (the “Acquisition”). The Company subsequently executed agreements to acquire approximately 1.3% of the total outstanding shares of GKCE and intends to acquire the remaining 0.7% at a later date. The base purchase price for the Acquisition, including acquisition of the minority shares was approximately $2,000,000. This purchase price was paid with $575,000 in cash and a $1,425,000 loan from the United States International Development Finance Corporation (“DFC”). The purchase price is subject to certain post-closing adjustments, including adjustment for GKCE's working capital and excess cash. The DFC loan is denominated in U.S. dollars, which is also the currency of Ecuador. See “Note 9. GKCE Acquisition” for further discussion. The Company continues to develop its design and business model for The Operating Room for the 21st CenturySM through its 50% owned OR21, LLC (“OR21 LLC”). The remaining 50% is owned by an architectural design company. OR21 LLC is not expected to generate significant revenue for at least the next two years. MedLeader was formed to provide continuing medical education online and through videos for doctors, nurses, and other healthcare workers. This subsidiary is not operational at this time. All significant intercompany accounts and transactions have been eliminated in consolidation. The Company is subject to risks and uncertainties as a result of the COVID-19 pandemic and the extent and duration of the future impact on the Company's business is highly uncertain and difficult to predict. The COVID-19 pandemic has adversely impacted, and is likely to further adversely impact, nearly all aspects of the Company’s business and markets, including its employees, operations, contractors, customers, government and third party payors and others. The full extent to which the pandemic will directly or indirectly impact the Company's business, results of operations and financial condition will depend on future developments that are highly uncertain and difficult to predict.
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Accounting Pronouncements Issued | Accounting Pronouncements Issued and Adopted In February 2018, the FASB issued ASU No. 2018-03 Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2018-03”), which clarifies certain aspects of ASU 2016-1. These are: equity securities without a readily determinable fair value – discontinuation, equity securities without a readily determinable fair value – adjustments, forward contracts and purchased options, presentation requirements for certain fair value option liabilities, fair value option liabilities denominated in a foreign currency, and transition guidance for equity securities without a readily determinable fair value. In August 2018, the FASB issued ASU No. 2018-13 Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements to Fair Value Measurement (“ASU 2018-13”), which amended the effective date and other certain measurement aspects of ASU 2018-03. The new guidance is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2019. The Company adopted ASU 2018-03 and ASU 2018-13 on January 1, 2020. There was no significant impact on its condensed consolidated financial statements and related disclosures. Accounting Pronouncements Issued and Not Yet Adopted In December 2019, the FASB issued ASU 2019-12 Income taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”) which removes specific exceptions to the general principles in Topic 740 and eliminates the need for an organization to analyze whether the following apply in a given period: exception to the incremental approach for intraperiod tax allocation; exceptions to accounting for basis differences when there are ownership changes in foreign investments; exception in interim period income tax accounting for year-to-date losses that exceed anticipated losses. The new guidance is effective for fiscal years and interim periods beginning after December 15, 2020. The Company is currently evaluating ASU 2019-12 to determine the impact it may have on its consolidated financial statements.
|
Property and Equipment (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Property and Equipment | The following table summarizes property and equipment as of June 30, 2020 and December 31, 2019:
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Leases (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Maturities of Lessee Operating Lease | The following table summarizes maturities of lessee operating lease liabilities as of June 30, 2020:
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Per Share Amounts (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted earnings per share for the three and six-month periods ended June 30, 2020 and 2019:
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Stock-based Compensation (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Stock Option Activity | The following table summarizes stock option activity for the six-month periods ended June 30, 2020 and 2019:
|
GKCE Acquisition (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Purchase Price Consideration | The major classes of assets and liabilities to which the Company has preliminarily allocated the fair value of purchase price consideration were as follows:
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Schedule of Tangible Assets Acquired as Part of Business Combination | The preliminary value of the acquired tangible assets acquired are as follows:
|
Basis of Presentation (Details Textual) - USD ($) $ in Thousands |
Jun. 12, 2020 |
Jun. 30, 2020 |
---|---|---|
GKCE Acquisition | ||
Asset acquisition, percentage of shares acquired | 98.00% | |
Asset acquisition, percentage of shares to be acquired | 1.30% | |
Asset acquisition, percentage of shares remaining | 0.70% | |
Base purchase consideration | $ 2,000 | |
Payments for asset acquisitions | 575 | |
Asset acquisition, transaction costs | $ 1,425 | |
OR21 LLC | ||
Equity method investment, ownership percentage | 50.00% | |
Architectural Design Company | ||
Equity method investment, ownership percentage | 50.00% |
Property and Equipment (Details Textual) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2020 |
Dec. 31, 2019 |
|
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | $ 40,301 | $ 41,480 |
Outside of the United States | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | 3,455 | |
Gamma Knife | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | $ 943 | |
Medical Equipment and Facilities | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 3 years | |
Medical Equipment and Facilities | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 10 years | |
PBRT Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 20 years |
Property and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 99,054 | $ 96,941 |
Accumulated depreciation | (58,753) | (55,461) |
Property and equipment, net | 40,301 | 41,480 |
Medical equipment and facilities | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 94,200 | 92,132 |
Office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 604 | 594 |
Deposits and construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,000 | 1,965 |
Deposits towards purchase of proton beam systems | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,250 | $ 2,250 |
Long-Term Debt Financing (Details Textual) $ in Thousands |
Jun. 30, 2020
USD ($)
note
|
---|---|
Debt Disclosure [Abstract] | |
Number of debt instruments | note | 7 |
Long-term debt | $ | $ 5,291 |
Finance Leases (Details Textual) $ in Thousands |
Jun. 30, 2020
USD ($)
lease
|
---|---|
Debt Disclosure [Abstract] | |
Number of financing leases | lease | 7 |
Finance lease obligations | $ | $ 9,641 |
Leases (Details Textual) - USD ($) $ in Thousands |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Dec. 31, 2019 |
|
Operating Leased Assets [Line Items] | |||
Operating lease, right-of-use asset | $ 1,031 | $ 1,106 | |
Operating lease, liability | 1,031 | ||
Lease reassessment right of use assets and lease liabilities | 67 | $ 0 | |
Right of use assets and lease liabilities | $ 135 | $ 1,362 | |
Minimum | |||
Operating Leased Assets [Line Items] | |||
Lessee, operating lease, discount rate | 4.00% | ||
Operating lease, remaining lease term | 3 years | ||
Maximum | |||
Operating Leased Assets [Line Items] | |||
Lessee, operating lease, discount rate | 6.00% | ||
Operating lease, remaining lease term | 4 years |
Leases - Summary of Maturities of Lessee Operating Lease (Details) $ in Thousands |
Jun. 30, 2020
USD ($)
|
---|---|
Leases [Abstract] | |
2020 (excluding the six-months ended June, 2020) | $ 171 |
2021 | 347 |
2022 | 353 |
2023 | 248 |
2024 | 8 |
Total lease payments | 1,127 |
Less imputed interest | (96) |
Total | $ 1,031 |
Per Share Amounts (Details Textual) - shares shares in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Aug. 03, 2020 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Options granted (in shares) | 10 | 18 | |||
Restricted Stock | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Options granted (in shares) | 50 | ||||
Restricted Stock | Subsequent Event | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Options granted (in shares) | 10 | ||||
Warrant | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Amount of antidilutive securities excluded from computation (in shares) | 420 | 181 | 410 | 513 |
Per Share Amounts - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
Earnings Per Share [Abstract] | ||||
Net (loss) income attributable to American Shared Hospital Services | $ (483) | $ 31 | $ (618) | $ 301 |
Weighted average common shares for basic earnings per share (in shares) | 6,008 | 5,876 | 6,066 | 5,862 |
Diluted effect of stock options and restricted stock (in shares) | 69 | 30 | 69 | 33 |
Weighted average common shares for diluted earnings per share (in shares) | 6,077 | 5,906 | 6,135 | 5,895 |
Basic (loss) earnings per share (in USD per share) | $ (0.08) | $ 0.01 | $ (0.10) | $ 0.05 |
Diluted (loss) earnings per share (in USD per share) | $ (0.08) | $ 0.01 | $ (0.10) | $ 0.05 |
Stock-based Compensation (Details Textual) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||||
---|---|---|---|---|---|---|---|
Jan. 04, 2017 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Mar. 31, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2010 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation expense | $ 53 | $ 53 | $ 108 | $ 109 | $ 108 | ||
Nonvested awards, unrecognized stock-based compensation expense | 434 | $ 434 | |||||
Expected term for cost to be recognized (in years) | 3 years | ||||||
Incentive Compensation Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock reserved for issuance (in shares) | 1,630,000 | ||||||
Nonvested awards, unrecognized stock-based compensation expense | $ 19 | $ 19 | |||||
Performance Share Award Agreement | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock awards (in shares) | 161,766 | ||||||
Unvested awards (in shares) | 129,000 | 129,000 |
GKCE Acquisition - Narrative (Details) - USD ($) |
6 Months Ended | |
---|---|---|
Jun. 12, 2020 |
Jun. 30, 2020 |
|
Business Acquisition [Line Items] | ||
Payments for working capital | $ 515,000 | |
GKCE Acquisition | ||
Business Acquisition [Line Items] | ||
Asset acquisition, percentage of shares acquired | 98.00% | |
Asset acquisition, percentage of shares to be acquired | 1.30% | |
Asset acquisition, percentage of shares remaining | 0.70% | |
Fair value of noncontrolling interest | $ 58,000 | |
Percentage of outstanding shares | 100.00% | |
Total consideration transferred | $ 2,869,000 | |
Base purchase consideration | 2,000,000 | |
Payments for working capital | 515,000 | |
Additional consideration transferred | 354,000 | |
Payments for asset acquisitions | 575,000 | |
Asset acquisition, transaction costs | 1,425,000 | |
Goodwill | 1,265,000 | |
Tangible and intangible assets acquired | 801,000 | |
Acquisition related costs | $ 93,000 | |
GKCE Acquisition | Purchased intangible assets | ||
Business Acquisition [Line Items] | ||
Intangible assets acquired | $ 78,000 |
GKCE Acquisition - Schedule of Tangible Assets Acquired as Part of Business Combination (Details) - GKCE Acquisition $ in Thousands |
Jun. 12, 2020
USD ($)
|
---|---|
Business Acquisition [Line Items] | |
Property, plant and equipment, additions | $ 723 |
Building | |
Business Acquisition [Line Items] | |
Property, plant and equipment, additions | $ 404 |
Useful life | 20 years |
Medical equipment | |
Business Acquisition [Line Items] | |
Property, plant and equipment, additions | $ 302 |
Useful life | 2 years |
Other fixed assets | |
Business Acquisition [Line Items] | |
Property, plant and equipment, additions | $ 17 |
Useful life | 2 years |
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