icad20230630

icad20230630_10q.htm

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2023

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 001-09341

iCAD, Inc.

(Exact name of registrant as specified in its charter)

Delaware	02-0377419
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

98 Spit Brook Road, Suite 100, Nashua, NH	03062
(Address of principal executive offices)	(Zip Code)

(603) 882-5200

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading

symbol(s)

Name of each exchange

on which registered

Common Stock, $0.01 par value

ICAD

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirement for the past 90 days. Yes ☒ No ☐.

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, an emerging growth company or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated filer	☐	Accelerated filer	☐

Non-accelerated filer	☒	Smaller reporting company	☒

		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) Yes ☐ No ☒.

As of the close of business on August 10, 2023, there were 25,446,407 shares outstanding of the registrant’s Common Stock, $0.01 par value.

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iCAD, Inc.

INDEX

		Page
PART I	FINANCIAL INFORMATION

Item 1	Financial Statements

	Condensed Consolidated Balance Sheets as of June 30, 2023 (unaudited) and December 31, 2022	1

	Condensed Consolidated Statements of Operations (unaudited) for the three and six months ended June 30, 2023 and 2022	2

	Condensed Consolidated Statements of Stockholders’ Equity (unaudited) for the three and six months ended June 30, 2023 and 2022	3

	Condensed Consolidated Statements of Cash Flows (unaudited) for the six months ended June 30, 2023 and 2022	4

	Notes to Condensed Consolidated Financial Statements (unaudited)	5

Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17

Item 3	Quantitative and Qualitative Disclosures about Market Risk	24

Item 4	Controls and Procedures	25

PART II	OTHER INFORMATION	26

Item 1A	Risk Factors	26

Item 6	Exhibits	27

	Signatures	28

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iCAD, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In thousands, except for share data)

(Unaudited)

	*June 30,*			*December 31,*
	*2023*			*2022*
Assets
Current assets:
Cash and cash equivalents	$	19,037		$	21,313
Trade accounts receivable, net of allowance for credit losses of $984 and $922 as of June 30, 2023 and December 31, 2022, respectively		5,747			8,898
Inventory, net		4,248			5,389
Prepaid expenses and other current assets		2,304			2,641
Total current assets		31,336			38,241
Property and equipment, net of accumulated depreciation of $2,273 and $2,135 as of June 30, 2023 and December 31, 2022, respectively		1,471			1,074
Operating lease assets		3,113			3,361
Other assets		54			69
Intangible assets, net of accumulated amortization of $8,490 and $8,932 as of June 30, 2023 and December 31, 2022, respectively		388			482
Goodwill		8,362			8,362
Deferred tax assets		108			116
Total assets	$	44,832		$	51,705
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	857		$	1,973
Accrued and other expenses		4,363			4,681
Lease payable—current portion		644			582
Deferred revenue—current portion		6,027			6,216
Total current liabilities		11,891			13,452
Lease payable, net of current		2,478			2,803
Deferred revenue, net of current		283			542
Deferred tax		6			6
Total liabilities		14,658			16,803

Commitments and Contingencies (Note 12)
Stockholders’ equity:
Preferred stock, $0.01 par value: authorized 1,000,000 shares; none issued.		—			—
Common stock, $0.01 par value: authorized 60,000,000 shares; issued 25,446,407 as of both June 30, 2023 and December 31, 2022; outstanding 25,260,576 as of both June 30, 2023 and December 31, 2022.		254			254
Additional paid-in capital		303,699			302,899
Accumulated deficit		(272,364	)		(266,836	)
Treasury stock at cost, 185,831 shares as of both June 30, 2023 and December 31, 2022		(1,415	)		(1,415	)
Total stockholders’ equity		30,174			34,902
Total liabilities and stockholders’ equity	$	44,832		$	51,705

See accompanying notes to condensed consolidated financial statements.

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iCAD, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(In thousands, except for per share data)

(Unaudited)

	*Three Months Ended*						*Six Months Ended*
	*June 30,*						*June 30,*
	*2023*			*2022*			*2023*			*2022*
Revenue:
Products	$	2,644		$	4,475		$	5,387		$	9,035
Service and supplies		3,221			3,100			6,256			6,063
Total revenue		5,865			7,575			11,643			15,098
Cost of revenue:
Products		461			1,008			1,047			2,095
Service and supplies		1,000			1,001			1,993			2,050
Amortization and depreciation		55			75			125			150
Total cost of revenue		1,516			2,084			3,165			4,295
Gross profit		4,349			5,491			8,478			10,803
Operating expenses:
Engineering and product development		1,263			2,367			3,544			4,642
Marketing and sales		2,112			3,435			4,967			7,000
General and administrative		2,832			2,742			5,695			5,673
Amortization and depreciation		65			61			120			124
Total operating expenses		6,272			8,605			14,326			17,439
Loss from operations		(1,923	)		(3,114	)		(5,848	)		(6,636	)
Other income/ (expense):
Interest expense		—			—			—			(1	)
Interest income		182			14			332			16
Other income (expense), net		(5	)		(18	)		(3	)		(41	)
Other income (expense), net		177			(4	)		329			(26	)
Loss before provision for income taxes		(1,746	)		(3,118	)		(5,519	)		(6,662	)
Provision for tax expense		(4	)		—			(9	)		(1	)
Net loss and comprehensive loss	$	(1,750	)	$	(3,118	)	$	(5,528	)	$	(6,663	)
Net loss per share:
Basic and diluted	$	(0.07	)	$	(0.12	)	$	(0.22	)	$	(0.26	)
Weighted average number of shares used in computing loss per share:
Basic and diluted		25,261			25,185			25,261			25,172

See accompanying notes to condensed consolidated financial statements.

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iCAD, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Stockholders’ Equity

(In thousands, except shares)

(Unaudited)

	*For the three months ended June 30, 2023*
	*Common Stock*				*Additional*
	*Number of*				*Paid-in*		*Accumulated*			*Treasury*			*Stockholders’*
	*Shares Issued*		*Par Value*		*Capital*		*Deficit*			*Stock*			*Equity*
Balance at March 31, 2023		25,446,407	$	254	$	303,485	$	(270,614	)	$	(1,415	)	$	31,710
Stock-based compensation		—		—		214		—			—			214
Net loss		—		—		—		(1,750	)		—			(1,750	)
Balance at June 30, 2023		25,446,407	$	254	$	303,699	$	(272,364	)	$	(1,415	)	$	30,174

	*For the six months ended June 30, 2023*
	*Common Stock*				*Additional*
	*Number of*				*Paid-in*		*Accumulated*			*Treasury*			*Stockholders*
	*Shares Issued*		*Par Value*		*Capital*		*Deficit*			*Stock*			*Equity*
Balance at December 31, 2022		25,446,407	$	254	$	302,899	$	(266,836	)	$	(1,415	)	$	34,902
Stock-based compensation		—

SEC Form 10-Q filed by iCAD Inc.