|
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
|
|