|
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:
☒
|
|
| | | | | ii | | | |
| | | | | iii | | | |
| | | | | iii | | | |
| | | | | 1 | | | |
| | | | | 1 | | | |
| | | | | 3 | | | |
| | | | | 5 | | | |
| | | | | 10 | | | |
| | | | | 12 | | | |
| | | | | 29 | | | |
| | | | | 30 | | | |
| | | | | 31 | | | |
| | | | | 49 | | | |
| | | | | 49 | | | |
| | | | | 50 | | | |
| | | | | 57 | | | |
| | | | | 62 | | | |
| | | | | 75 | | | |
| | | | | 78 | | | |
| | | | | 80 | | | |
| | | | | 84 | | | |
| | | | | 86 | | | |
| | | | | 90 | | | |
| | | | | 92 | | | |
| | | | | 92 | | | |
| | | | | 92 | | | |
| | | | | F-1 | | |
|
Year ended December 31
|
| |||
|
2020
|
| |
2019
|
|
|
Cdn$1.3415
|
| |
Cdn$1.3269
|
|
Period
|
| |
High
|
| |
Low
|
| |
Volume
|
| |||
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 | | |
| | |
Years Ended December 31,
|
| | | | | | | | | | | | | |||||||||
| | |
2020
|
| |
2019
|
| |
$
|
| |
%
|
| ||||||||||||
Revenue | | | | | | | | | | | | | | | | | | | | | | | | | |
Patient service fees, net
|
| | | $ | (3,443) | | | | | $ | 13,738 | | | | | $ | (17,181) | | | | | | (125.1)% | | |
Hospital, management and other
|
| | | | 6,967 | | | | | | 3,987 | | | | | | 2,980 | | | | | | 74.7% | | |
Total revenue
|
| | | | 3,524 | | | | | | 17,725 | | | | | | (14,201) | | | | | | (80.1)% | | |
Cost of revenues
|
| | | | 7,912 | | | | | | 4,955 | | | | | | 2,957 | | | | | | 59.7% | | |
Gross margin
|
| | | | (4,388) | | | | | | 12,770 | | | | | | (17,158) | | | | | | (134.4)% | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
General and administrative
|
| | | | 9,592 | | | | | | 8,427 | | | | | | 1,165 | | | | | | 13.8% | | |
Sales and marketing
|
| | | | 1,209 | | | | | | 1,435 | | | | | | (226) | | | | | | (15.7)% | | |
Depreciation and amortization
|
| | | | 1,014 | | | | | | 537 | | | | | | 477 | | | | | | 88.8% | | |
Total operating expenses
|
| | | | 11,815 | | | | | | 10,399 | | | | | | 1,416 | | | | | | 13.6% | | |
Income (loss) from operations
|
| | | | (16,203) | | | | | | 2,371 | | | | | | (18,574) | | | | | | (783.4)% | | |
Other income/(expenses) | | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings (loss) from equity method investments
|
| | | | (1,194) | | | | | | 1,305 | | | | | | (2,499) | | | | | | (191.5)% | | |
Gain on Paycheck Protection Program loan
|
| | | | 1,211 | | | | | | — | | | | | | 1,211 | | | | | | —% | | |
Gain on extinguishment of acquisition debt
|
| | | | 188 | | | | | | — | | | | | | 188 | | | | | | —% | | |
Other income, net
|
| | | | 89 | | | | | | 172 | | | | | | (83) | | | | | | (48.3)% | | |
Accretion expense
|
| | | | (782) | | | | | | (74) | | | | | | (708) | | | | | | 956.8% | | |
| | |
Years Ended December 31,
|
| | | | | | | | | | | | | |||||||||
| | |
2020
|
| |
2019
|
| |
$
|
| |
%
|
| ||||||||||||
Interest expense, net
|
| | | | (530) | | | | | | (252) | | | | | | (278) | | | | | | 110.3% | | |
Total other income (loss)
|
| | | | (1,018) | | | | | | 1,151 | | | | | | (2,169) | | | | | | (188.4)% | | |
Income (loss) before income taxes
|
| | | | (17,221) | | | | | | 3,522 | | | | | | (20,743) | | | | | | (589.0)% | | |
Income tax benefit (expense)
|
| | | | 2,185 | | | | | | (806) | | | | | | 2,991 | | | | | | (371.1)% | | |
Net income (loss)
|
| | | | (15,036) | | | | | | 2,716 | | | | | | (17,752) | | | | | | (653.6)% | | |
Income (loss) per common share | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | $ | (0.41) | | | | | $ | 0.08 | | | | | $ | (0.49) | | | | | | (625.6)% | | |
Diluted
|
| | | $ | (0.41) | | | | | $ | 0.06 | | | | | $ | (0.47) | | | | | | (725.0)% | | |
Weighted average number common shares – basic
|
| | | | 36,233,127 | | | | | | 34,402,607 | | | | | | 1,830,520 | | | | | | 5.3% | | |
Weighted average number common shares – diluted
|
| | | | 36,233,127 | | | | | | 41,912,607 | | | | | | (5,679,480) | | | | | | (13.6)% | | |
Name
|
| |
Age
|
| |
Position
|
|
John Farlinger | | |
62
|
| | Executive Chairperson and Chief Executive Officer | |
Trent Carman(1) | | |
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 | | | | | | 200,000 | | | | | | 315,600 | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | | 48,484 | | | | | | 870,667 | | |
| | | 2019 | | | | | | 285,000 | | | | | | 130,000 | | | | | | Nil | | | | | | 117,000 | | | | | | Nil | | | | | | Nil | | | | | | 43,075 | | | | | | 575,075 | | | ||
| | | 2018 | | | | | | 203,621 | | | | | | 96,000 | | | | | | Nil | | | | | | 302,000 | | | | | | Nil | | | | | | Nil | | | | | | 15,634 | | | | | | 617,255 | | | ||
Trent Carman,(2)
Chief Financial Officer
|
| | | | 2020 | | | | | | 162,776 | | | | | | 81,676 | | | | | | 210,400 | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | | 22,067 | | | | | | 476,919 | | |
| | | 2019 | | | | | | 238,001 | | | | | | 85,000 | | | | | | Nil | | | | | | 157,000 | | | | | | Nil | | | | | | Nil | | | | | | 19,108 | | | | | | 499,109 | | | ||
| | | 2018 | | | | | | 38,334 | | | | | | 20,000 | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | | — | | | | | | 58,334 | | | ||
Preston Parsons,(3)(4)(5)
Founder and Director
|
| | | | 2020 | | | | | | 285,000 | | | | | | 647,645 | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | | 31,500 | | | | | | 964,145 | | |
| | | 2019 | | | | | | 265,270 | | | | | | 85,000 | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | | 33,400 | | | | | | 383,670 | | | ||
| | | 2018 | | | | | | 137,975 | | | | | | 90,000 | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | | Nil | | | | | | 62,742 | | | | | | 290,717 | | |
Name and Principal 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 ($) |
| |
Expiry
Date |
| |||||||||||||||
John Farlinger, (1) ......................
Executive Chairperson and Chief Executive Officer |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Restricted
Stock |
| |
300,000
common shares |
| | | | 3/4/2020 | | | | | US$ | 1.03(5) | | | | | | | | | | | US$ | 1.03(5) | | | | | | 12/31/2021 | | | ||
Trent Carman,(2)
Chief Financial Officer |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Restricted
Stock |
| |
200,000
common shares |
| | | | 3/4/2020 | | | | | US$ | 1.03(5) | | | | | US$ | 1.052 | | | | | US$ | 1.03(5) | | | | | | 12/31/2021 | | | ||
Preston Parsons,(3)(4)
Founder and Director |
| |
Restricted
Stock |
| |
3,300,000
common shares |
| | | | 11/8/2016 | | | | | US$ | 1.03(5) | | | | | US$ | 1.052 | | | | | US$ | 1.03(5) | | | | | | 12/31/2021 | | |
| | |
Option Awards
|
| |
Stock Awards
|
| ||||||||||||||||||||||||||||||||||||||||||||||||
Name and Principal 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)
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 | | | | | | 2.1% | | |
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)
|
| | | | 21,629,990 | | | | | | 38.1% | | |
c/o Assure Holdings Corp, 4600 South Ulster Street, Suite 1225, Denver, Colorado.
|
| | | ||||||||||
Martin Burian(4)
|
| | | | 423,000 | | | | | | 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)
|
| | | | 24,085,394 | | | | |
|
42.4%
|
| |
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 | | | | | | 11.6% | | |
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 | | | | | | 6.6% | | |
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 | | | | | | 5.5% | | |
527 Madison Ave., Suite 2600
New York, NY 10022 |
| | |
| | |
December 31, 2020
|
| |||
Due from PEs, net(a)(b)
|
| | | $ | 4,856 | | |
Due from Management and Board, net(c)
|
| | | | 334 | | |
| | | | $ | 5,190 | | |
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 | | | | | | — | | | | | | — | | |
Christopher Davis(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)
|
| | | | 21,629,990 | | | | | | 312,500 | | | | | | 21,317,490 | | | | | | 38.0% | | |
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-6 | | | |
| | | | | F-5 | | | |
| | | | | F-7 | | | |
|
Schedule II — Valuation and Qualifying Accounts
|
| | | | | | |
| | |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash
|
| | | $ | 4,386 | | | | | $ | 59 | | |
Accounts receivable, net
|
| | | | 14,965 | | | | | | 30,863 | | |
Income tax receivable
|
| | | | 150 | | | | | | — | | |
Other current assets
|
| | | | 284 | | | | | | 168 | | |
Due from PEs
|
| | | | 4,856 | | | | | | 2,489 | | |
Due from related parties
|
| | | | 334 | | | | | | 128 | | |
Total current assets
|
| | | | 24,975 | | | | | | 33,707 | | |
Equity method investments
|
| | | | 608 | | | | | | 2,360 | | |
Property, plant and equipment, net
|
| | | | 356 | | | | | | 209 | | |
Operating lease right of use asset
|
| | | | 124 | | | | | | 196 | | |
Finance lease right of use asset
|
| | | | 608 | | | | | | 466 | | |
Intangibles, net
|
| | | | 4,115 | | | | | | 4,587 | | |
Goodwill
|
| | | | 2,857 | | | | | | 2,857 | | |
Total assets
|
| | | $ | 33,643 | | | | | $ | 44,382 | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | |
LIABILITIES | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accounts payable and accrued liabilities
|
| | | $ | 2,871 | | | | | $ | 4,365 | | |
Current portion of debt
|
| | | | 4,100 | | | | | | 1,664 | | |
Current portion of lease liability
|
| | | | 521 | | | | | | 461 | | |
Current portion of acquisition debt
|
| | | | — | | | | | | 5,030 | | |
Other current liabilities
|
| | | | 96 | | | | | | 81 | | |
Total current liabilities
|
| | | | 7,588 | | | | | | 11,601 | | |
Lease liability, net of current portion
|
| | | | 772 | | | | | | 500 | | |
Debt, net of current portion
|
| | | | 2,251 | | | | | | 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
|
| | | | 2,668 | | | | | | 16,011 | | |
Deferred tax liability, net
|
| | | | 599 | | | | | | 2,010 | | |
Total liabilities
|
| | | | 14,434 | | | | | | 34,317 | | |
Commitments and contingencies (Note 15) | | | | | | | | | | | | | |
SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | |
Common stock: $0.001 par value; 900,000,000 shares authorized; 56,378,939 and 34,795,313 shares issued and outstanding, as of December 31, 2020 and 2019, respectively
|
| | | | 56 | | | | | | 35 | | |
Additional paid-in capital
|
| | | | 30,841 | | | | | | 6,682 | | |
Retained earnings (deficit)
|
| | | | (11,688) | | | | | | 3,348 | | |
Total shareholders’ equity
|
| | | | 19,209 | | | | | | 10,065 | | |
Total liabilities and shareholders’ equity
|
| | | $ | 33,643 | | | | | $ | 44,382 | | |
| | |
Years Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Revenue | | | | | | | | | | | | | |
Patient service fees, net
|
| | | $ | (3,443) | | | | | $ | 13,738 | | |
Hospital, management and other
|
| | | | 6,967 | | | | | | 3,987 | | |
Total revenue
|
| | | | 3,524 | | | | | | 17,725 | | |
Cost of revenues
|
| | | | 7,912 | | | | | | 4,955 | | |
Gross margin
|
| | | | (4,388) | | | | | | 12,770 | | |
Operating expenses | | | | | | | | | | | | | |
General and administrative
|
| | | | 9,592 | | | | | | 8,427 | | |
Sales and marketing
|
| | | | 1,209 | | | | | | 1,435 | | |
Depreciation and amortization
|
| | | | 1,014 | | | | | | 537 | | |
Total operating expenses
|
| | | | 11,815 | | | | | | 10,399 | | |
Income (loss) from operations
|
| | | | (16,203) | | | | | | 2,371 | | |
Other income/(expenses) | | | | | | | | | | | | | |
Earnings (loss) from equity method investments
|
| | | | (1,194) | | | | | | 1,305 | | |
Gain on Payroll Protection Program loan
|
| | | | 1,211 | | | | | | — | | |
Gain on extinguishment of acquisition debt
|
| | | | 188 | | | | | | — | | |
Other income, net
|
| | | | 89 | | | | | | 172 | | |
Accretion expense
|
| | | | (782) | | | | | | (74) | | |
Interest expense, net
|
| | | | (530) | | | | | | (252) | | |
Total other income (loss)
|
| | | | (1,018) | | | | | | 1,151 | | |
Income (loss) before income taxes
|
| | | | (17,221) | | | | | | 3,522 | | |
Income tax benefit (expense)
|
| | | | 2,185 | | | | | | (806) | | |
Net income (loss)
|
| | | $ | (15,036) | | | | | $ | 2,716 | | |
Income (loss) per common share | | | | | | | | | | | | | |
Basic
|
| | | $ | (0.41) | | | | | $ | 0.08 | | |
Diluted
|
| | | $ | (0.41) | | | | | $ | 0.06 | | |
Weighted average number of common shares used in per share calculation – basic
|
| | | | 36,233,127 | | | | | | 34,402,607 | | |
Weighted average number of common shares used in per share calculation – diluted
|
| | | | 36,233,127 | | | | | | 41,912,607 | | |
| | |
Years Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Cash flows from operating activities | | | | | | | | | | | | | |
Net income (loss)
|
| | | $ | (15,036) | | | | | $ | 2,716 | | |
Adjustments to reconcile net income to net cash used in operating activities | | | | | | | | | | | | | |
Cash receipts from operations
|
| | | | 13,794 | | | | | | 8,014 | | |
Losses (earnings) from equity method investments
|
| | | | 1,194 | | | | | | (1,305) | | |
Stock-based compensation
|
| | | | 548 | | | | | | 1,259 | | |
Depreciation and amortization
|
| | | | 1,014 | | | | | | 537 | | |
Provision for broker warrant fair value
|
| | | | — | | | | | | 14 | | |
Provision for stock option fair value
|
| | | | (50) | | | | | | 8 | | |
Gain on Paycheck Protection Program loan
|
| | | | (1,211) | | | | | | — | | |
Gain on extinguishment of acquisition debt
|
| | | | (188) | | | | | | — | | |
Accretion expense
|
| | | | 782 | | | | | | 74 | | |
Settlement of payables
|
| | | | 40 | | | | | | — | | |
Tax impact of equity component of convertible debt issuance
|
| | | | (388) | | | | | | — | | |
Deferred income taxes, net
|
| | | | (1,561) | | | | | | 684 | | |
Change in operating assets and liabilities
|
| | | | | | | | | | | | |
Accounts receivable, net
|
| | | | 2,104 | | | | | | (14,879) | | |
Prepaid expenses
|
| | | | (116) | | | | | | — | | |
Right of use assets
|
| | | | (301) | | | | | | — | | |
Accounts payable and accrued liabilities
|
| | | | (1,494) | | | | | | 509 | | |
Due from related parties
|
| | | | (2,573) | | | | | | (1,903) | | |
Lease liability
|
| | | | 843 | | | | | | — | | |
Income taxes
|
| | | | — | | | | | | (55) | | |
Other assets and liabilities
|
| | | | 66 | | | | | | 99 | | |
Net cash used in operating activities
|
| | | | (2,533) | | | | | | (4,228) | | |
Cash flows from investing activities | | | | | | | | | | | | | |
Purchase of equipment and furniture
|
| | | | (319) | | | | | | (48) | | |
Acquisition debt
|
| | | | (7,736) | | | | | | (466) | | |
Distributions received from equity method investments
|
| | | | 558 | | | | | | 979 | | |
Net cash provided by (used in) investing activities
|
| | | | (7,497) | | | | | | 465 | | |
Cash flows from financing activities | | | | | | | | | | | | | |
Proceeds from exercise of stock options and warrants
|
| | | | 19 | | | | | | 16 | | |
Proceeds from common share issuance, net
|
| | | | 9,611 | | | | | | — | | |
Proceeds from promissory note
|
| | | | — | | | | | | 2,000 | | |
Repayment of promissory note
|
| | | | — | | | | | | (582) | | |
Proceeds from line of credit
|
| | | | 2,122 | | | | | | 1,000 | | |
Repayment of line of credit
|
| | | | (1,000) | | | | | | (274) | | |
Proceeds from term loan
|
| | | | 1,978 | | | | | | — | | |
Repayment of term loan
|
| | | | (1,418) | | | | | | — | | |
Proceeds from Paycheck Protection Program
|
| | | | 1,211 | | | | | | — | | |
Proceeds from convertible debenture
|
| | | | 2,485 | | | | | | 965 | | |
Principal payments of finance leases
|
| | | | (651) | | | | | | (372) | | |
Proceeds from sale leaseback
|
| | | | — | | | | | | 238 | | |
Net cash provided by financing activities
|
| | | | 14,357 | | | | | | 2,991 | | |
Increase (decrease) in cash
|
| | | | 4,327 | | | | | | (772) | | |
Cash at beginning of period
|
| | | | 59 | | | | | | 831 | | |
Cash at end of period
|
| | | $ | 4,386 | | | | | $ | 59 | | |
Supplemental cash flow information | | | | | | | | | | | | | |
Interest paid
|
| | | $ | 498 | | | | | $ | 119 | | |
Income taxes paid
|
| | | $ | 55 | | | | | $ | 156 | | |
Supplemental non-cash flow information | | | | | | | | | | | | | |
Reclassification warrant fair value at exercise to equity
|
| | | $ | — | | | | | $ | 70 | | |
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 | | |
| | |
Common Stock
|
| |
Additional
paid-in Capital |
| |
Retained
earnings (deficit) |
| |
Total
shareholders’ equity |
| ||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||
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 | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | 1,259 | | | | | | — | | | | | | 1,259 | | |
Reclassification of stock option fair value at exercise to equity
|
| | | | — | | | | | | — | | | | | | 188 | | | | | | — | | | | | | 188 | | |
Expected tax loss of future stock compensation 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 | | |
Exercise of stock options
|
| | | | 50,000 | | | | | | — | | | | | | 19 | | | | | | — | | | | | | 19 | | |
Common share issuance, net
|
| | | | 16,483,626 | | | | | | 16 | | | | | | 9,595 | | | | | | — | | | | | | 9,611 | | |
Tax impact of equity component of convertible debt issuance
|
| | | | — | | | | | | — | | | | | | (388) | | | | | | — | | | | | | (388) | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | 548 | | | | | | — | | | | | | 548 | | |
Equity component of convertible debt issuance
|
| | | | — | | | | | | — | | | | | | 961 | | | | | | — | | | | | | 961 | | |
Fair value of finders’ warrants
|
| | | | — | | | | | | — | | | | | | 46 | | | | | | — | | | | | | 46 | | |
Settlement of performance share liability
|
| | | | 5,000,000 | | | | | | 5 | | | | | | 13,338 | | | | | | — | | | | | | 13,343 | | |
Settlement of payables
|
| | | | 50,000 | | | | | | — | | | | | | 40 | | | | | | — | | | | | | 40 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (15,036) | | | | | | (15,036) | | |
Balances, December 31, 2020
|
| | | | 56,378,939 | | | | | $ | 56 | | | | | $ | 30,841 | | | | | $ | (11,688) | | | | | $ | 19,209 | | |
|
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,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Accounts receivable, net: | | | | | | | | | | | | | |
Patient service fee
|
| | | $ | 79,310 | | | | | $ | 67,779 | | |
Hospital, management and other
|
| | | | 1,075 | | | | | | 1,159 | | |
Total accounts receivable
|
| | | | 80,385 | | | | | | 68,938 | | |
Allowance for doubtful accounts
|
| | | | (65,420) | | | | | | (38,075) | | |
Total accounts receivable, net
|
| | | $ | 14,965 | | | | | $ | 30,863 | | |
Year ended
|
| |
Balance at
beginning of year |
| |
Bad debt
expense |
| |
Deductions
|
| |
Balance at
end of year |
| ||||||||||||
December 31, 2020
|
| | | $ | 38,075 | | | | | $ | 31,117 | | | | | $ | (3,772) | | | | | $ | 65,420 | | |
December 31, 2019
|
| | | $ | 15,293 | | | | | $ | 26,433 | | | | | $ | (3,651) | | | | | $ | 38,075 | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Prepaid insurance
|
| | | $ | 116 | | | | | $ | 104 | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Deposits
|
| | | | 48 | | | | | | 34 | | |
Other assets
|
| | | | 120 | | | | | | 30 | | |
Other current assets
|
| | | $ | 284 | | | | | $ | 168 | | |
|
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Medical equipment
|
| | | $ | 588 | | | | | $ | 278 | | |
Computer equipment
|
| | | | 43 | | | | | | 38 | | |
Furniture and fixtures
|
| | | | 69 | | | | | | 65 | | |
Gross property, plant and equipment
|
| | | | 700 | | | | | | 381 | | |
Less: Accumulated depreciation and amortization
|
| | | | (344) | | | | | | (172) | | |
Property, plant and equipment, net
|
| | | $ | 356 | | | | | $ | 209 | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Accounts payable
|
| | | $ | 102 | | | | | $ | 1,056 | | |
Accrued billing fees
|
| | | | 1,490 | | | | | | 2,464 | | |
Accrued salaries and benefits
|
| | | | 1,163 | | | | | | 541 | | |
Other accrued liabilities
|
| | | | 116 | | | | | | 304 | | |
Accounts payable and accrued liabilities
|
| | | $ | 2,871 | | | | | $ | 4,365 | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Insurance premiums financed
|
| | | $ | 69 | | | | | $ | 81 | | |
Other liabilities
|
| | | | 27 | | | | | | — | | |
Other current liabilities
|
| | | $ | 96 | | | | | $ | 81 | | |
| | |
Years Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Loss for broker warrant fair value
|
| | | $ | — | | | | | $ | (14) | | |
(Loss) gain for stock option fair value
|
| | | | 50 | | | | | | (8) | | |
Gain on settlement
|
| | | | — | | | | | | 194 | | |
Other income
|
| | | | 39 | | | | | | — | | |
Other income, net
|
| | | $ | 89 | | | | | $ | 172 | | |
| | |
2020
|
| |
2019
|
| ||||||
Operating
|
| | | $ | 124 | | | | | $ | 196 | | |
Finance
|
| | | | 608 | | | | | | 466 | | |
Total
|
| | | $ | 732 | | | | | $ | 662 | | |
| | |
Years Ended December 31,
|
| | | | |||||||||
| | |
2020
|
| |
2019
|
| | ||||||||
Lease Cost: | | | | | | | | | | | | | | | ||
Operating leases
|
| | | $ | 212 | | | | | $ | 63 | | | | ||
Finance leases: | | | | | | | | | | | | | | | ||
Amortization of ROU assets
|
| | | | 371 | | | | | | 307 | | | | ||
Interest on lease liabilities
|
| | | | 64 | | | | | | 91 | | | | ||
Total finance lease cost
|
| | | | 435 | | | | | | 398 | | | | ||
Total lease cost
|
| | | $ | 647 | | | | | $ | 461 | | | |
| | |
As of
December 31, 2020 |
|
Weighted average remaining lease term: | | | | |
Operating leases
|
| |
0.5 years
|
|
Finance leases
|
| |
3.3 years
|
|
Weighted average discount rate: | | | | |
Operating leases
|
| |
6.9%
|
|
Finance leases
|
| |
7.9%
|
|
| | |
Operating
Leases |
| |
Finance
Leases |
| |
Total
Lease Liabilities |
| |||||||||
2021
|
| | | $ | 127 | | | | | $ | 469 | | | | | $ | 596 | | |
2022
|
| | | | — | | | | | | 445 | | | | | | 445 | | |
2023
|
| | | | — | | | | | | 177 | | | | | | 177 | | |
2024
|
| | | | — | | | | | | 131 | | | | | | 131 | | |
2025
|
| | | | — | | | | | | 95 | | | | | | 95 | | |
Thereafter
|
| | | | — | | | | | | 14 | | | | | | 14 | | |
Total lease payments
|
| | | | 127 | | | | | | 1,331 | | | | | | 1,458 | | |
Less: imputed interest
|
| | | | (3) | | | | | | (162) | | | | | | (165) | | |
Present value of lease liabilities
|
| | | $ | 124 | | | | | $ | 1,169 | | | | | $ | 1,293 | | |
Less: current portion of lease liabilities
|
| | | | 124 | | | | | | 397 | | | | | | 521 | | |
Noncurrent lease liabilities
|
| | | $ | — | | | | | $ | 772 | | | | | $ | 772 | | |
| | |
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) | | |
Noncurrent 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 | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Finite-lived intangible assets | | | | | | | | | | | | | |
Doctor agreements
|
| | | $ | 4,509 | | | | | $ | 4,509 | | |
Non compete agreements
|
| | | | 36 | | | | | | 36 | | |
Total finite-lived intangible assets
|
| | | | 4,545 | | | | | | 4,545 | | |
Less accumulated amortization
|
| | | | (547) | | | | | | (75) | | |
Finite-lived intangible assets, net
|
| | | | 3,998 | | | | | | 4,470 | | |
Indefinite-lived intangible assets | | | | | | | | | | | | | |
Tradenames
|
| | | | 117 | | | | | | 117 | | |
Total intangible assets
|
| | | $ | 4,115 | | | | | $ | 4,587 | | |
|
2021
|
| | | $ | 466 | | |
|
2022
|
| | | | 451 | | |
|
2023
|
| | | | 451 | | |
|
2024
|
| | | | 451 | | |
|
2025
|
| | | | 451 | | |
|
Thereafter
|
| | | | 1,728 | | |
| | | | | $ | 3,998 | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Bank line of credit
|
| | | $ | 1,978 | | | | | $ | 1,000 | | |
Bank promissory note
|
| | | | 2,122 | | | | | | 1,418 | | |
| | | | | 4,100 | | | | | | 2,418 | | |
Face value of convertible debenture
|
| | | | 3,450 | | | | | | 965 | | |
Less: fair value ascribed to conversion feature and warrants
|
| | | | (1,523) | | | | | | (564) | | |
Plus: accretion of implied interest
|
| | | | 324 | | | | | | 5 | | |
| | | | | 2,251 | | | | | | 406 | | |
Total debt
|
| | | | 6,351 | | | | | | 2,824 | | |
Less: current portion of debt
|
| | | | (4,100) | | | | | | (1,664) | | |
Long-term debt
|
| | | $ | 2,251 | | | | | $ | 1,160 | | |
| | |
Bank
Indebtedness |
| |
Convertible
Debt |
| ||||||
2021
|
| | | $ | 4,100 | | | | | $ | — | | |
2022
|
| | | | — | | | | | | — | | |
2023
|
| | | | — | | | | | | 965 | | |
2024
|
| | | | — | | | | | | 2,485 | | |
2025
|
| | | | — | | | | | | — | | |
Total
|
| | | $ | 4,100 | | | | | $ | 3,450 | | |
Less: fair value ascribed to conversion feature and warrants
|
| | | | — | | | | | | (1,523) | | |
Plus: accretion and implied interest
|
| | | | — | | | | | | 324 | | |
| | | | $ | 4,100 | | | | | $ | 2,251 | | |
| | |
Options Outstanding
|
| |||||||||||||||||||||
| | |
Number of
Shares Subject to Options |
| |
Weighted
Average Exercise Price Per Share |
| |
Weighted
Average Remaining Contractual Life (in years) |
| |
Aggregate
Intrinsic Value (in thousands) |
| ||||||||||||
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 | | | | | | | | |
Options granted
|
| | | | 865,000 | | | | | $ | 0.95 | | | | | | | | | | | | | | |
Options exercised
|
| | | | (50,000) | | | | | $ | 0.50 | | | | | | | | | | | | | | |
Options canceled / expired
|
| | | | (258,000) | | | | | $ | 1.60 | | | | | | | | | | | | | | |
Balance at December 31, 2020
|
| | | | 3,743,000 | | | | | $ | 1.05 | | | | | | 4.00 | | | | | $ | 1,053 | | |
Vested and exercisable at December 31, 2020
|
| | | | 2,352,601 | | | | | $ | 0.95 | | | | | | 3.98 | | | | | $ | 995 | | |
|
Options Outstanding
|
| |
Options Exercisable
|
| | | | | | | |||||||||||||||||||||
|
Number of
Outstanding |
| |
Weighted
Average Remaining Contractual Life (in years) |
| |
Weighted
Average Exercise Price Per Share |
| |
Number
Exercisable |
| |
Weighted
Average Exercise Price Per Share |
| | | ||||||||||||||||
|
1,000,000
|
| | | | 4.65 | | | | | $ | 0.05 | | | | | | 1,000,000 | | | | | $ | 0.05 | | | | | ||||
|
60,000
|
| | | | 1.82 | | | | | $ | 2.80 | | | | | | 60,000 | | | | | $ | 2.80 | | | | | ||||
|
75,000
|
| | | | 7.05 | | | | | $ | 1.80 | | | | | | 75,000 | | | | | $ | 1.80 | | | | | ||||
|
425,000
|
| | | | 2.75 | | | | | $ | 1.80 | | | | | | 311,667 | | | | | $ | 1.80 | | | | | ||||
|
884,000
|
| | | | 3.04 | | | | | $ | 1.56 | | | | | | 530,401 | | | | | $ | 1.56 | | | | | ||||
|
434,000
|
| | | | 3.76 | | | | | $ | 1.28 | | | | | | 202,533 | | | | | $ | 1.28 | | | | | ||||
|
300,000
|
| | | | 4.66 | | | | | $ | 0.90 | | | | | | 60,000 | | | | | $ | 0.90 | | | | | ||||
|
565,000
|
| | | | 4.95 | | | | | $ | 0.97 | | | | | | 113,000 | | | | | $ | 0.97 | | | | | ||||
|
3,743,000
|
| | | | 4.00 | | | | | $ | 1.05 | | | | | | 2,352,601 | | | | | $ | 0.95 | | | | |
| | |
Years Ended December 31,
|
| |||
| | |
2020
|
| |
2019
|
|
Expected life (in years)
|
| |
5.0
|
| |
5.0
|
|
Risk-free interest rate
|
| |
0.4 – 2.5%
|
| |
2.0%
|
|
Dividend yield
|
| |
—%
|
| |
—%
|
|
Expected volatility
|
| |
91 – 107%
|
| |
100%
|
|
|
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 | | |
|
Gain on revaluation
|
| | | | (50) | | |
|
Balance at December 31, 2020
|
| | | $ | 16 | | |
| | |
Years Ended December 31,
|
| |||
| | |
2020
|
| |
2019
|
|
Risk free rate of return
|
| |
0.1%
|
| |
1.7%
|
|
Expected life
|
| |
1.8 years
|
| |
2.8 years
|
|
Expected volatility
|
| |
100 %
|
| |
170 %
|
|
Expected dividend per share
|
| |
nil
|
| |
nil
|
|
| | |
Number of
Warrants outstanding |
| |||
Balance at December 31, 2018
|
| | | | 49,000 | | |
Warrants exercised
|
| | | | (44,600) | | |
Warrants expired
|
| | | | (4,400) | | |
Convertible debt, warrants issued (Note 8)
|
| | | | 392,755 | | |
Balance at December 31, 2019
|
| | | | 392,755 | | |
Convertible debt, warrants issued (Note 8)
|
| | | | 1,511,609 | | |
Equity financing, warrants issued (discussed above)
|
| | | | 16,420,664 | | |
Balance at December 31, 2020
|
| | | | 18,325,028 | | |
|
Balance at December 31, 2018
|
| | | $ | 56 | | |
|
Loss on revaluation
|
| | | | 14 | | |
|
Reclassification warrant fair value at exercise to equity
|
| | | | (70) | | |
|
Balance at December 31, 2019
|
| | | $ | — | | |
| | |
Year Ended
December 31, 2020 |
| |
Year Ended
December 31, 2019 |
|
Risk free rate of return
|
| |
0.39%
|
| |
1.64%
|
|
Expected life
|
| |
5.0 years
|
| |
4.0 years
|
|
Expected volatility
|
| |
90%
|
| |
171%
|
|
Expected dividend per share
|
| |
nil
|
| |
nil
|
|
Exercise price
|
| |
$0.78
|
| |
$1.40
|
|
Stock price
|
| |
$0.96
|
| |
$1.31
|
|
| | |
Years Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Net income (loss)
|
| | | $ | (15,036) | | | | | $ | 2,716 | | |
Basic weighted average common shares outstanding
|
| | | | 36,233,127 | | | | | | 34,402,607 | | |
Basic earnings (loss)per common share
|
| | | $ | (0.41) | | | | | $ | 0.08 | | |
Net income (loss)
|
| | | $ | (15,036) | | | | | $ | 2,716 | | |
Basic weighted average common shares outstanding
|
| | | | 36,233,127 | | | | | | 34,402,607 | | |
Dilutive effect of stock options, warrants, and
performance shares |
| | | | — | | | | | | 7,510,000 | | |
Dilutive weighted average common shares outstanding
|
| | | | 36,233,127 | | | | | | 41,912,607 | | |
Diluted earnings loss) per common share
|
| | | $ | (0.41) | | | | | $ | 0.06 | | |
| | |
Years Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Income tax expense: | | | | | | | | | | | | | |
Federal
|
| | | $ | — | | | | | $ | — | | |
State
|
| | | | — | | | | | | (3) | | |
| | | | | — | | | | | | (3) | | |
Deferred tax (benefit) expense: | | | | | | | | | | | | | |
Federal
|
| | | | (1,825) | | | | | | 690 | | |
State
|
| | | | (360) | | | | | | 119 | | |
| | | | | (2,185) | | | | | | 809 | | |
Total income tax (benefit) expense
|
| | | $ | (2,185) | | | | | $ | 806 | | |
| | |
Years Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Deferred Tax Assets (Liabilities): | | | | | | | | | | | | | |
Noncurrent: | | | | | | | | | | | | | |
Fixed assets
|
| | | $ | (219) | | | | | $ | (133) | | |
Stock-based and performance share compensation.
|
| | | | 2,286 | | | | | | 4,456 | | |
Equity method investments
|
| | | | (187) | | | | | | (835) | | |
Accrual to cash adjustment
|
| | | | (4,368) | | | | | | (6,916) | | |
Section 163(J) limitation
|
| | | | — | | | | | | 81 | | |
Net operating loss and carryforward
|
| | | | 2,211 | | | | | | 1,357 | | |
Intangibles
|
| | | | (10) | | | | | | — | | |
Debt issuance costs
|
| | | | 32 | | | | | | — | | |
Accretion expense
|
| | | | (344) | | | | | | — | | |
Other
|
| | | | — | | | | | | (20) | | |
Deferred Tax Liabilities, net
|
| | | $ | (599) | | | | | $ | (2,010) | | |
| | |
Years Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Reconciliation of effective tax rate: | | | | | | | | | | | | | |
Federal taxes at statutory rate
|
| | | | 21.0% | | | | | | 21.0% | | |
State taxes, net of federal benefit
|
| | | | 4.4% | | | | | | 3.7% | | |
Permanent items
|
| | | | 0.9% | | | | | | (1.6)% | | |
Performance shares
|
| | | | (13.7)% | | | | | | —% | | |
Provision to return adjustment and other
|
| | | | 0.1% | | | | | | (0.2)% | | |
Change in rate
|
| | | | (0.4)% | | | | | | —% | | |
NOL carryback difference
|
| | | | 0.3% | | | | | | —% | | |
Effective income tax rate
|
| | | | 12.6% | | | | | | 22.9% | | |
|
Balance, December 31, 2018
|
| | | $ | 2,256 | | |
|
Share of earnings
|
| | | | 1,305 | | |
|
Distributions
|
| | | | (979) | | |
|
Acquisition
|
| | | | (222) | | |
|
Balance, December 31, 2019
|
| | | $ | 2,360 | | |
|
Share of losses
|
| | | | (1,194) | | |
|
Distributions
|
| | | | (558) | | |
|
Balance, December 31, 2020
|
| | | $ | 608 | | |
| | |
December 31,
2020 |
| |
September 30,
2020 |
| |
June 30,
2020 |
| |
March 31,
2020 |
| ||||||||||||
Revenue, net of accounts receivable valuation allowance
|
| | | $ | 5,964 | | | | | $ | 3,963 | | | | | $ | (10,736) | | | | | $ | 4,333 | | |
Net income/(loss) before tax
|
| | | | (114) | | | | | | (1,344) | | | | | | (15,284) | | | | | | (479) | | |
| | |
December 31,
2019 |
| |
September 30,
2019 |
| |
June 30,
2019 |
| |
March 31,
2019 |
| ||||||||||||
Revenue, net of accounts receivable valuation allowance
|
| | | $ | (4,659) | | | | | $ | 7,951 | | | | | $ | 8,389 | | | | | $ | 6,044 | | |
Net income/(loss) before tax
|
| | | | (8,942) | | | | | | 4,763 | | | | | | 5,324 | | | | | | 2,377 | | |
| | |
Amount
|
| |||
SEC registration fee
|
| | | $ | 3,784 | | |
Legal fees and expenses
|
| | | $ | 50,000 | | |
Accountant’s fees and expenses
|
| | | $ | 20,000 | | |
Miscellaneous
|
| | | $ | 10,000 | | |
Total
|
| | | $ | 83,784 | | |
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 | | |
|
Exhibit
Number |
| |
Description
|
|
| 3.1 | | | Articles of Incorporation of Montreux Capital Corp. dated May 15, 2017 (incorporated by referenced to Exhibit 3.1 to the Company’s Form S-1 filed with the SEC on December 30, 2020) | |
| 3.2 | | | Articles of Domestication (from British Columbia to State of Nevada) dated May 15, 2017 (incorporated by referenced to Exhibit 3.2 to the Company’s Form S-1 filed with the SEC on December 30, 2020) | |
| 3.3 | | | Certificate of Amendment to Articles of Incorporation (Name Change) of Montreux Capital Corp. dated May 17, 2017 (incorporated by referenced to Exhibit 3.3 to the Company’s Form S-1 filed with the SEC on December 30, 2020) | |
| 3.4 | | | | |
| 5.1 | | | Opinion of Dorsey & Whitney LLP (incorporated by referenced to Exhibit 5.1 to the Company’s Form S-1 filed with the SEC on February 1, 2021) | |
| 10.1 | | | Share Exchange Agreement among Montreux Capital Corp. and Assure Holdings Inc. dated May 16, 2017 (incorporated by referenced to Exhibit 10.1 to the Company’s Form S-1 filed with the SEC on December 30, 2020) | |
| 10.2 | | | Stock Grant Agreement between Assure Neuromonitoring and Preston Parsons dated June 15, 2016 (incorporated by referenced to Exhibit 10.2 to the Company’s Form S-1 filed with the SEC on December 30, 2020) | |
| 10.3 | | | Stock Grant Agreement between Assure Neuromonitoring and Matthew Willer dated June 15, 2016 (incorporated by referenced to Exhibit 10.1 to the Company’s Form S-1 filed with the SEC on December 30, 2020) | |
| 10.4 | | | Employment Agreement between Assure Holdings Corp. and Preston Parsons dated November 7, 2016 (incorporated by referenced to Exhibit 10.1 to the Company’s Form S-1 filed with the SEC on December 30, 2020) | |
| 10.5 | | | Employment Agreement between Assure Holdings Corp. and John Farlinger dated June 1, 2018 (incorporated by referenced to Exhibit 10.1 to the Company’s Form S-1 filed with the SEC on December 30, 2020) | |
| 10.6 | | | Executive Employment Agreement between Assure Holdings Corp. and Trent Carman (incorporated by referenced to Exhibit 10.6 to the Company’s Form S-1 filed with the SEC on December 30, 2020) | |
| 10.7 | | | Debt Settlement Agreement between Assure Holdings Corp. and Preston Parsons dated August 16, 2018 (incorporated by referenced to Exhibit 10.7 to the Company’s Form S-1 filed with the SEC on December 30, 2020) | |
| 10.8 | | | Share Grant Amendment and Transfer Agreement between Assure Holdings Corp. and Preston Parsons dated March 4, 2020 (incorporated by referenced to Exhibit 10.8 to the Company’s Form S-1 filed with the SEC on December 30, 2020) | |
| 10.9 | | | Form of Stock Grant Agreement dated December 29, 2020 (incorporated by referenced to Exhibit 10.9 to the Company’s Form S-1 filed with the SEC on December 30, 2020) | |
| 10.10 | | | Loan Agreement between Assure Holdings Corp. and Central Bank & Trust, part of Farmers & Stockmens Bank, dated August 12, 2020 (incorporated by referenced to Exhibit 10.10 to the Company’s Form S-1 filed with the SEC on December 30, 2020) | |
|
Exhibit
Number |
| |
Description
|
|
| 10.11 | | | Guaranty Agreement between Subsidiaries of Assure Holdings Corp. and Central Bank & Trust,part of Farmers & Stockmens Bank, dated August 12, 2020 (incorporated by referenced to Exhibit 10.11 to the Company’s Form S-1 filed with the SEC on December 30, 2020) | |
| 10.12 | | | Security Agreement between Assure Holdings Corp. and Central Bank & Trust, part of Farmers & Stockmens Bank, dated August 12, 2020 (incorporated by referenced to Exhibit 10.12 to the Company’s Form S-1 filed with the SEC on December 30, 2020) | |
| 10.13 | | | Promissory Note of Assure Holdings Corp. to Central Bank & Trust, part of Farmers & Stockmens Bank, dated August 12, 2020 (incorporated by referenced to Exhibit 10.13 to the Company’s Form S-1 filed with the SEC on December 30, 2020) | |
| 10.14 | | | Securities Purchase Agreement among Assure Holdings Corp. and Selling Shareholders dated December 1, 2020 (incorporated by referenced to Exhibit 10.14 to the Company’s Form S-1 filed with the SEC on December 30, 2020) | |
| 10.15 | | | Registration Rights Agreement among Assure Holdings Corp. and Selling Shareholders dated December 1, 2020 (incorporated by referenced to Exhibit 10.15 to the Company’s Form S-1 filed with the SEC on December 30, 2020) | |
| 10.16 | | | Stock Option Plan, as amended (approved on December 10, 2020) (incorporated by referenced to Exhibit 10.16 to the Company’s Form S-1 filed with the SEC on December 30, 2020) | |
| 10.17 | | | | |
| 10.18 | | | | |
| 14.1 | | | Code of Ethics (incorporated by referenced to Exhibit 14.1 to the Company’s Form S-1 filed with the SEC on December 30, 2020) | |
| 21.1 | | | | |
| 23.1 | | | | |
| 23.2 + | | | | |
| 24.1 + | | | |
|
Signature
|
| |
Title
|
| |
Date
|
|
|
/s/ John Farlinger
John Farlinger
|
| |
Executive Chairperson and Chief
Executive Officer |
| |
April 2, 2021
|
|
|
/s/ John Price
John Price
|
| | Chief Financial Officer and Principal Accounting Officer | | |
April 2, 2021
|
|
|
/s/ Preston Parsons
Preston Parsons
|
| | Director and Founder | | |
April 2, 2021
|
|
|
/s/ Martin Burian
Martin Burian
|
| | Director | | |
April 2, 2021
|
|
|
/s/ Christopher Rumana
Christopher Rumana
|
| | Director | | |
April 2, 2021
|
|
|
/s/ Steven Summer
Steven Summer
|
| | Director | | |
April 2, 2021
|
|