10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q/A

Amendment No. 1

(Mark One)

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

For the quarterly period ended June 30, 2012.

or

¨ 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: 000-54384

NEOGENOMICS, INC.

(Exact name of registrant as specified in its charter)

Nevada	74-2897368
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
12701 Commonwealth Drive, Suite 9, Fort Myers, Florida	33913
(Address of principal executive offices)	(Zip Code)

(239) 768-0600

(Registrant’s telephone number, including area code)

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 requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

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

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	¨  (Do not check if a smaller reporting company)	Smaller reporting company	x

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

As of August 2, 2012, the registrant had 45,162,863 shares of common stock, par value $0.001 per share outstanding.

EXPLANATORY NOTE

This Amendment No. 1 to the Quarterly Report on Form 10-Q/A (the “Amendment”) amends the Quarterly Report on Form 10-Q of NeoGenomics, Inc. (the “Company”) for the quarter ended June 30, 2012 (the “Original Filing”), that was originally filed with the U.S. Securities and Exchange Commission on August 6, 2012. The Amendment is being filed to submit Exhibit 101. The Amendment revises the exhibit index included in Part II, Item 6 of the Original Filing and Exhibit 101 (XBRL interactive data) is included as an exhibit to the Amendment.

In addition, as required by Rule 12b-15 under the Securities Exchange Act of 1934, as amended (“Exchange Act”), new certifications by the Company’s principal executive officer and principal financial officers are filed as exhibits hereto.

Except as described above, the Amendment does not modify or update the disclosures presented in, or exhibits to, the Original Filing in any way. Those sections of the Original Filing that are unaffected by the Amendment are not included herein. The Amendment continues to speak as of the date of the Original Filing. Furthermore, the Amendment does not reflect events occurring after the filing of the Original Filing. Accordingly, the Amendment should be read in conjunction with the Original Filing, as well as the Company’s other filings made with the SEC pursuant to Section 13(a) or 15(d) of the Exchange Act subsequent to the filing of the Original Filing.

2

PART II – OTHER INFORMATION

ITEM 6 — EXHIBITS

EXHIBIT NO.	DESCRIPTION
10.1+	First Amendment to Amended and Restated Revolving Credit and Security Agreement dated March 26, 2012 among NeoGenomics, Inc., NeoGenomics Laboratories, Inc. and CapitalSource Finance LLC as incorporated by reference to the Company’s Post Effective Amendment No. 2 to Form S-1 (333-166526) filed with the SEC on April 27, 2012
31.1**	Certification by Principal Executive Officer pursuant to Rule 13a-14(a)/ 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2**	Certification by Principal Financial Officer pursuant to Rule 13a-14(a)/ 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.3**	Certification by Principal Accounting Officer pursuant to Rule 13a-14(a)/ 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1**	Certification by Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101**	The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2012 formatted in Extensible Business Reporting Language (XBRL): (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Operations, (iii) the Condensed Consolidated Statements of Cash Flows and (iv) related notes.

** Provided herewith

+ Confidential treatment previously requested and granted with respect to certain portions, which portions were omitted and filed separately with the SEC.

3

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: August 15, 2012	NEOGENOMICS, INC.
	By:	/s/ Douglas M. VanOort
		Name:	Douglas M. VanOort
		Title:	Chairman and Chief Executive Officer
	By:	/s/ George Cardoza
		Name:	George Cardoza
		Title:	Chief Financial Officer
	By:	/s/ Edwin F. Weidig III
		Name:	Edwin F. Weidig III
		Title:	Director of Finance and Principal Accounting Officer

4

EX-31.1

EXHIBIT 31.1

CERTIFICATIONS

I, Douglas M. VanOort, certify that:

1. I have reviewed this Amendment No. 1 to Quarterly Report on Form 10-Q/A for the three months ended June 30, 2012 of NeoGenomics, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

August 15, 2012	/s/ Douglas M. VanOort
	Douglas M. VanOort
	Chairman and Chief Executive Officer

5

EX-31.2

EXHIBIT 31.2

CERTIFICATIONS

I, George Cardoza, certify that:

1. I have reviewed this Amendment No. 1 to Quarterly Report on Form 10-Q/A for the three months ended June 30, 2012 of NeoGenomics, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

August 15, 2012	/s/ George Cardoza
	George Cardoza
	Chief Financial Officer

6

EX-31.3

EXHIBIT 31.3

CERTIFICATIONS

I, Edwin F. Weidig III, certify that:

1. I have reviewed this Amendment No. 1 to Quarterly Report on Form 10-Q/A for the three months ended June 30, 2012 of NeoGenomics, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

August 15, 2012	/s/ Edwin F. Weidig III
	Edwin F. Weidig III
	Director of Finance and Principal Accounting Officer

7

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Amendment No. 1 to Quarterly Report of NeoGenomics, Inc. (the “Company”) on Form 10-Q/A for the three months ended June 30, 2012 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned, in the capacities and on the dates indicated below, hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to his knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 15, 2012	/s/ Douglas M. VanOort
	Douglas M. VanOort
	Chairman and Chief Executive Officer
Date: August 15, 2012	/s/ George Cardoza
	George Cardoza
	Chief Financial Officer
Date: August 15, 2012	/s/ Edwin F. Weidig III
	Edwin F. Weidig III
	Director of Finance and Principal Accounting Officer

The foregoing certification is being furnished solely to accompany the Report pursuant to 18 U.S.C. § 1350, and is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing. A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

8

XML

Capital Leases (Details Textual) (USD $)	3 Months Ended
	Jun. 30, 2012
Commitments (Additional Textual) [Abstract]
Lease agreement amount	$ 1,120,000
Lease term period	60 months
Capital leases agreement price	1
Lease fair market value purchase option maximum	16.00%
Lease fair market value purchase option minimum	8.00%
Lease Outstanding Amount	$ 495,000
Maximum [Member]
Commitments (Textual) [Abstract]
Term of capital leases period	60 months
Minimum [Member]
Commitments (Textual) [Abstract]
Term of capital leases period	36 months

XML

Intangible Assets (Details Textual) (USD $)	3 Months Ended	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2012	Dec. 31, 2011
Intangible Assets (Textual) [Abstract]
Intangible assets held	$ 2,912,000	$ 2,912,000	$ 0
Amortization expense of intangibles	56,000	70,000
Sales Revenue, Goods, Net		$ 5,000,000
License Agreement Expiry Period		5 years

XML

Intangible Assets

6 Months Ended

Jun. 30, 2012

Intangible Assets [Abstract]

INTANGIBLE ASSETS

NOTE D — INTANGIBLE ASSETS

On January 6, 2012, we entered into a Master License Agreement (the “License Agreement”) with Health Discovery Corporation, a Georgia corporation (“HDC”). We were granted an exclusive worldwide license to certain of HDC’s “Licensed Patents” and “Licensed Know-How” (as defined in the License Agreement) to, among other things, use, develop, make, have made, sell, offer to sell, modify, and commercially exploit “Licensed Uses” (as defined in the License Agreement) and “Licensed Products” (as defined in the License Agreement), in the fields of laboratory testing, molecular diagnostics, clinical pathology, anatomic pathology and digital image analysis (excluding non-pathology-related radiologic and photographic image analysis) relating to the development, marketing production or sale of any “Laboratory Developed Tests” or LDTs (as defined in the License Agreement) or other products used for diagnosing, ruling out, predicting a response to treatment, and/or monitoring treatment of any or all hematopoietic and solid tumor cancers excluding cancers affecting the retina and breast cancer (collectively with certain other qualifications as defined in the License Agreement, the “Field” or “Field of Use”).

The License Agreement allows us, among other things, to develop and sell, without limitation, any gene, gene-product or protein-based LDTs using HDC’s technology in the Field and provides for sublicensing rights and the assignment of the License Agreement, in whole or in part, in our sole discretion. The License Agreement further provides us with access to certain HDC personnel and consulting resources in the fields of mathematics and in genetic and molecular test development. The Licensed Know-How also includes, among other things, certain tests, algorithms and computer software which have already been developed by HDC.

We have agreed to use our best efforts to commercialize certain products within one year of the date of the License Agreement, subject to two one-year extensions per product if needed, including LDTs for prostate, colon and pancreatic cancer and software to automate the interpretation of cytogenetics and flow cytometry (collectively, the “Initial Licensed Products”).

If we have not generated $5.0 million of net revenue from products, services and sublicensing arrangements pursuant to the License Agreement within five years of the effective date, HDC may, at its option, revoke the exclusivity with respect to any one or more of the Initial Licensed Products, subject to certain conditions.

We had no intangible assets on December 31, 2011 and at June 30, 2012 intangible assets consisted of the following (in thousands):

	Weighted Average Amortization Period		June 30, 2012
			COST		Accumulated Amortization		Net
Support Vector Machine (SVM) technology		108 months	$	500	$	28	$	472
Laboratory developed test (LDT) technology		164 months	$	1,482	$	27	$	1,455
Flow Cytometry and Cytogenetics technology		202 months	$	1,000	$	15	$	985

We recorded approximately $56,000 and $70,000 in amortization expense of intangibles for the three and six months ended June 30, 2012 as a research and development expense in the consolidated statement of operations. We will record all amortization of intangibles in that category until the time that we have products, services or cost savings directly attributable to these intangible assets that would require that it be recorded in cost of goods sold.

The estimated amortization expense related to amortizable intangible assets for each of the five succeeding fiscal years and thereafter as of June 30, 2012 is as follows (in thousands):

Fiscal Year Ending December 31,
Remainder of 2012	$	112
2013		223
2014		223
2015		223
2016		223
2017		223
Thereafter		1,685

XML

Common Stock Warrants (Details) (Warrant [Member], USD $)	3 Months Ended
	Jun. 30, 2012
Cash Exercise [Member]
Warrants issued to members of board of directors
Warrant Shares	175,000
Exercise Price / Share	$ 1.50
Cash Received	$ 262,500
Common Stock Shares Issued	175,000
Cashless Net Exercise [Member]
Warrants issued to members of board of directors
Warrant Shares	575,000
Exercise Price / Share	$ 1.50
Cash Received	$ 0
Common Stock Shares Issued	64,495
Expired Unexercised [Member]
Warrants issued to members of board of directors
Warrant Shares	98,417
Exercise Price / Share	$ 1.50

XML

Stock Options (Details) (USD $)	3 Months Ended	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2012
Stock Options (Textual) [Abstract]
Supplemental options vested	200,000	200,000
Deemed value per share		$ 4.00
Stock option to purchase	5,942,003	5,942,003
Maximum [Member]
Stock Options (Textual) [Abstract]
Exercise prices	$ 1.71	$ 1.71
Minimum [Member]
Stock Options (Textual) [Abstract]
Exercise prices	$ 0.25	$ 0.25
Chief Medical Officer [Member]
Stock Options (Textual) [Abstract]
Stock option to purchase		250,000
Common stock exercise price per share		$ 1.43
Stock option term		5 years
Stock option vested		25.00%
Stock option valued		$ 173,411
Stock compensation expense	18,864	39,378
Chief Executive Officer [Member]
Stock Options (Textual) [Abstract]
Stock option to purchase		800,000
Common stock exercise price per share		$ 1.71
Stock option term		5 years
Stock option valued		505,000
Stock compensation expense	$ 30,113	$ 89,684

XML

Common Stock Warrant (Details 1)	6 Months Ended
	Jun. 30, 2012	Dec. 31, 2011
Warrant Activity
Warrants Granted	200,000
Weighted Average Exercise Price Granted	1.43
Warrant [Member]
Warrant Activity
Warrants Granted	200,000
Warrants Excercised	(900,000)
Warrants Expired	(98,417)
Warrants outstanding, June 30, 2012	1,358,333	2,156,750
Weighted Average Excercise Price Warrants outstanding, December 31, 2011	1.34
Weighted Average Exercise Price Granted	1.43
Weighted Average Exercise Price Exercised	1.5
Weighted Average Exercise Price Expired	1.5
Weighted Average Excercise Price Warrants outstanding, June 30, 2012	1.24

XML

Common Stock Warrants (Details Textual) (USD $)	1 Months Ended	3 Months Ended	6 Months Ended
	Jun. 30, 2007	Jun. 30, 2012	Jun. 30, 2012	Jun. 04, 2012	Dec. 31, 2011
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Common stock, shares issued		45,143,363	45,143,363		43,416,200
Common stock, shares outstanding		45,143,363	45,143,363		43,416,200
Warrants Granted			200,000
Common stock warrants (Textual) [Abstract]
Exercise price per share			1.43
Albitar Warrant Period			5 years
Value Of Warrants		$ 130,678	$ 130,678
Stock compensation expense		$ 15,000	$ 32,500
Warrants exercised				100,000
No Of Shares Inexchange Of Cashless Net Exercise Of Warrants			10,571
Warrants Issued	348,417
Warrant [Member]
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Common stock, shares issued		550,000	550,000
Plasma Prostate Cancer Test Licensed From Health Discovery Corp HDC [Member]
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Warrants Granted			80,000
Colon Cancer Test Licensed From HDC [Member]
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Warrants Granted			40,000
Pancreatic Cancer Test Licensed From HDC [Member]
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Warrants Granted			40,000
Cytogenetics Automated Image Analysis Technology Licenses From HDC [Member]
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Warrants Granted			20,000
Cytometry Automated Image Analysis Technology Licenses From HDC [Member]
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Warrants Granted			20,000

XML

Revolving Credit and Security Agreement

6 Months Ended

Jun. 30, 2012

Revolving Credit and Security Agreement [Abstract]

REVOLVING CREDIT AND SECURITY AGREEMENT

NOTE C — REVOLVING CREDIT AND SECURITY AGREEMENT

On March 26, 2012, the Parent Company, NeoGenomics Laboratories (“Borrower”), and CapitalSource Finance LLC (“Capital Source”) entered into a First Amendment (the “Amendment”) to the Amended and Restated Revolving Credit and Security Agreement, dated April 26, 2010 (the “Amended and Restated Credit Agreement” or the “Credit Facility”). The Amended and Restated Credit Agreement amended and restated the original Revolving Credit and Security Agreement dated February 1, 2008, as amended, among the Parent Company, Borrower and CapitalSource (the “Original Credit Agreement”). The terms of the Amendment and the Amended and Restated Credit Agreement are substantially similar except that the Amendment, among other things:

I.) Increases the maximum principal amount of the revolving credit facility (the “Facility Cap”) to $8.0 million from $5.0 million; provided, that the Borrower may request to increase the Facility Cap twice during the term of the Amended and Restated Credit Agreement in increments of $1.0 million to a maximum of $10,000,000;

II.) Extends the term of the Amended and Restated Credit Agreement to March 26, 2015;

III.) Revises the definition of “Minimum Termination Fee” to be:

a. 2.5% of the Facility Cap if the “Revolver Termination” (as defined in the Agreement) is at any time before March 26, 2013;

b. 1.5% of the Facility Cap if the Revolver Termination is after March 26, 2013 but before March 26, 2014;

c. 0.5% of the Facility Cap if the Revolver Termination is on or after March 26, 2014; and

d. That there shall be no Minimum Termination Fee if the Revolver Termination occurs within five (5) days of the end of the term.

IV.) Modifies the definition of “Permitted Indebtedness” and “Fixed Charge Coverage Ratio”; and

V.) Amends Section 3.1 of the Amended and Restated Credit Agreement by deleting “the LIBOR shall be not less than 2.0%” and replacing it with “the LIBOR shall be not less than 1.0%”.

We paid Capital Source a commitment fee of $80,000 in connection with the Amendment.

Interest on outstanding advances under the Credit Facility are payable monthly in arrears on the first day of each calendar month and has an effective rate of interest of 5.25%.

On June 30, 2012 the available credit under the Credit Facility was approximately $1.6 million and the outstanding borrowing was $6.4 million after netting compensating cash on hand.

On July 27, 2012 the Facility Cap was increased from $8.0 million to $9.0 million.

XML

Capital Leases (Details) (USD $)	6 Months Ended
	Jun. 30, 2012
Lease Facility [Abstract]
Lease Outstanding Amount	$ 495,000
Garic, Inc. [Member]
Lease Facility [Abstract]
Facility Amount	1,000,000
FY Two Thousand Twelve Leased Amounts	358,000
Lease Outstanding Amount	558,000
Lease Available Amount	$ 442,000
Interest Rate	16.12%
Term	36 months

XML

Consolidated Balance Sheets (Unaudited) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
CURRENT ASSETS
Cash and cash equivalents	$ 2,566	$ 2,628
Restricted cash	300	500
Accounts receivable (net of allowance for doubtful accounts of $2,466 and $2,150, respectively)	11,327	7,894
Inventories	1,526	1,202
Other current assets	837	954
Total current assets	16,556	13,178
PROPERTY AND EQUIPMENT (net of accumulated depreciation of $8,258 and $6,653 respectively)	8,410	6,642
INTANGIBLE ASSETS (net of accumulated amortization of $70 and $- , respectively)	2,912	0
OTHER ASSETS	123	129
TOTAL ASSETS	28,001	19,949
CURRENT LIABILITIES
Accounts payable	3,134	2,529
Accrued compensation	2,314	2,137
Accrued expenses and other liabilities	691	773
Short-term portion of equipment capital leases	2,564	2,107
Revolving credit line	6,393	3,898
Total current liabilities	15,096	11,444
LONG TERM LIABILITIES
Long-term portion of equipment capital leases	3,186	2,608
TOTAL LIABILITIES	18,282	14,052
Commitments and contingencies
STOCKHOLDERS' EQUITY
Common stock, $.001 par value, (100,000,000 shares authorized; 45,143,363 and 43,416,200 shares issued and outstanding at June 30, 2012 and December 31, 2011, respectively)	45	43
Additional paid-in capital	31,157	28,490
Accumulated deficit	(21,483)	(22,636)
Total stockholders' equity	9,719	5,897
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 28,001	$ 19,949

XML

Nature of Business and Basis of Financial Statement Presentation

6 Months Ended

Jun. 30, 2012

Nature of Business and Basis of Financial Statement Presentation [Abstract]

NATURE OF BUSINESS AND BASIS OF FINANCIAL STATEMENT PRESENTATION

NOTE A — NATURE OF BUSINESS AND BASIS OF FINANCIAL STATEMENT PRESENTATION

Nature of Business

NeoGenomics, Inc., a Nevada corporation (the “Parent” or the “Parent Company”), and its subsidiary, NeoGenomics Laboratories, Inc., a Florida corporation (“NeoGenomics Laboratories” or the “Subsidiary”) (collectively referred to as “we”, “us”, “our”, “NeoGenomics”, or the “Company”), operates as a certified “high complexity” clinical laboratory in accordance with the federal government’s Clinical Laboratory Improvement Act, as amended (“CLIA”), and is dedicated to the delivery of clinical diagnostic services to pathologists, oncologists, urologists, hospitals, and other laboratories throughout the United States.

Basis of Presentation

The accompanying interim consolidated financial statements are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. These financial statements include the accounts of the Parent and the Subsidiary. All intercompany transactions and balances have been eliminated in the accompanying financial statements.

Certain information and footnote disclosures normally included in the Company’s annual audited consolidated financial statements and accompanying notes have been condensed or omitted in these interim financial statements. Accordingly, the unaudited consolidated financial statements included herein should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company’s annual report on Form 10-K for the year ended December 31, 2011, filed with the Securities and Exchange Commission on March 12, 2012.

The results of operations presented in this quarterly report on Form 10-Q are not necessarily indicative of the results of operations that may be expected for any future periods. In the opinion of management, these unaudited consolidated financial statements include all adjustments and accruals, consisting only of normal recurring adjustments that are necessary for a fair statement of the results of all interim periods reported herein.

Certain amounts in the prior year’s consolidated financial statements have been reclassified to conform to the current year presentation.

XML

Subsequent Events (Details) (USD $)	Dec. 31, 2011
Subsequent Events
State income taxes	$ 16,249,164
Scenario Previously Reported [Member]
Subsequent Events
State income taxes	$ 16,683,683

XML

Revolving Credit and Security Agreement (Details) (USD $)	6 Months Ended
	Jun. 30, 2012
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate	2.00%
Revolving credit and security agreement (Textual) [Abstract]
Effective rate of interest	5.25%
Available credit under credit facility	$ 1,600,000
Outstanding borrowing	6,400,000
Commitment fee for capital source	80,000
Debt Instrument, Description of Variable Rate Basis	The libor shall be not less than 2.0% and replacing it with the libor shall be not less than 1.0%
Amended And Restated Credit Agreement [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate	1.00%
Maximum [Member]
Line of Credit Facility [Line Items]
Current maximum principal amount of credit facility	8,000,000
Increase in line of credit faciltiy cap	10,000,000
Increased facility cap	9,000,000
Minimum [Member]
Line of Credit Facility [Line Items]
Current maximum principal amount of credit facility	5,000,000
Increase in line of credit faciltiy cap	1,000,000
Increased facility cap	$ 8,000,000
Due before march, 26 2013 [Member]
Line of Credit Facility [Line Items]
Minimum termination fee, percentage	2.50%
Due before march 26, 2014 [Member]
Line of Credit Facility [Line Items]
Minimum termination fee, percentage	1.50%
Due after march 26, 2014 [Member]
Line of Credit Facility [Line Items]
Minimum termination fee, percentage	0.50%

XML

Intangible Assets (Details1) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012
Estimated amortization expense
Remainder of 2012	$ 112
2013	223
2014	223
2015	223
2016	223
2017	223
Thereafter	$ 1,685

XML

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2012

Summary of Significant Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE B — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

The Company prepares its consolidated financial statements in conformity with accounting principles generally accepted in the United States of America. These principles require management to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, together with amounts disclosed in the related notes to the consolidated financial statements. Actual results and outcomes may differ from management’s estimates, judgments and assumptions. Significant estimates, judgments and assumptions used in these consolidated financial statements include, but are not limited to, those related to revenues, accounts receivable and related reserves, contingencies, useful lives and recovery of long-term and intangible assets, income taxes, and the fair value of stock-based compensation. These estimates, judgments, and assumptions are reviewed periodically and the effects of material revisions in estimates are reflected in the consolidated financial statements prospectively from the date of the change in estimate.

Research and Development

Research and development costs are expensed as incurred. Research and development expenses consist of compensation and benefits for research and development personnel, amortization of intangibles, related supplies, inventory and payment for samples to complete validation studies. These expenses were incurred to develop new genetic tests.

Intangible Assets

Intangible assets with finite useful lives are recorded at fair value which is our cost, less accumulated amortization. Amortization is recognized over the estimated useful lives of the assets. The Company’s intangible assets are related to our license agreement with Health Discovery Corporation.

Concentrations of Credit Risk

Concentrations of credit risk with respect to revenue and accounts receivable are primarily limited to certain clients to whom the Company provides a significant volume of its services, and to specific payers of our services such as Medicare and individual insurance companies. The Company’s client base consists of a large number of geographically dispersed clients diversified across various customer types. Over the last year, we have expanded our relationship with a large oncology practice with multiple office locations, each of which is a separate client to NeoGenomics. For the three months ended June 30, 2012, all of the affiliated client office locations from this oncology practice combined represented approximately 15.3% of our revenue compared to 9.9% of revenue for the quarter ended June 30, 2011 and for the six months ended June 30, 2012 represented approximately 16.6% of our revenue compared to 6.0% of revenue for the six months ended June 30, 2011. All other clients were less than 5% of total revenue individually.

Income Taxes

We compute income taxes in accordance with applicable accounting standards. Deferred taxes are recognized for the tax consequences of temporary differences by applying enacted statutory rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. Also, the effect on deferred taxes of a change in tax rates is recognized in income in the period that included the enactment date. Temporary differences between financial and tax reporting arise primarily from the use of different depreciation methods for property and equipment, stock based compensation expense and the timing of recognition of bad debts.

We evaluate tax positions that have been taken or are expected to be taken in our tax returns, and record a liability for uncertain tax positions. As of June 30, 2012 we had no provision for related income taxes because we have large Net Operating Loss positions to offset our current net income.

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Consolidated Balance Sheets (Parenthetical) (Unaudited) (USD $) In Thousands, except Share data, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Consolidated Balance Sheets [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 2,466	$ 2,150
Property and equipment accumulated depreciation	8,258	6,653
Intangible assets, accumulated amortization	$ 70
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	45,143,363	43,416,200
Common stock, shares outstanding	45,143,363	43,416,200

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Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2012

Intangible Assets [Abstract]

Classes of intangible assets

	Weighted Average Amortization Period		June 30, 2012
			COST		Accumulated Amortization		Net
Support Vector Machine (SVM) technology		108 months	$	500	$	28	$	472
Laboratory developed test (LDT) technology		164 months	$	1,482	$	27	$	1,455
Flow Cytometry and Cytogenetics technology		202 months	$	1,000	$	15	$	985

Estimated amortization expense

The estimated amortization expense related to amortizable intangible assets for each of the five succeeding fiscal years and thereafter as of June 30, 2012 is as follows (in thousands):

Fiscal Year Ending December 31,
Remainder of 2012	$	112
2013		223
2014		223
2015		223
2016		223
2017		223
Thereafter		1,685

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Document and Entity Information	6 Months Ended
	Jun. 30, 2012	Aug. 02, 2012
Document and Entity Information [Abstract]
Entity Registrant Name	NEOGENOMICS INC
Entity Central Index Key	0001077183
Document Type	10-Q
Document Period End Date	Jun. 30, 2012
Amendment Flag	false
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		45,162,863

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2012

Net Income (Loss) Per Share [Abstract]

Computation of basic and diluted earnings (loss) per share

The following table provides the computation of basic and diluted net income (loss) per share for the three and six month periods ending June 30, 2012 and 2011: (in thousands, except per share amounts)

	Three Months Ended June 30,					Six Months Ended June 30,
	2012		2011			2012		2011
Net income (loss)	$	551	$	(293	)	$	1,154	$	(1,186	)
Basic weighted average shares outstanding		44,954		42,857			44,827		42,299
Effect of potentially dilutive securities		2,696		—			2,674		—
Diluted weighted average shares outstanding		47,650		42,857			47,501		42,299
Basic net income (loss) per share	$	0.01	$	(0.01	)	$	0.03	$	(0.03	)
Diluted net income (loss) per share	$	0.01	$	(0.01	)	$	0.02	$	(0.03	)

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Consolidated Statements of Operations (Unaudited) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Consolidated Statements of Operations [Abstract]
NET REVENUE	$ 15,611	$ 10,466	$ 30,771	$ 19,271
COST OF REVENUE	8,244	5,810	16,261	10,750
GROSS PROFIT	7,367	4,656	14,510	8,521
OPERATING EXPENSES
General and administrative	4,066	2,914	7,816	5,618
Research and development	528	172	1,025	291
Sales and marketing	1,934	1,684	3,969	3,437
Total operating expenses	6,528	4,770	12,810	9,346
INCOME (LOSS) FROM OPERATIONS	839	(114)	1,700	(825)
INTEREST AND OTHER INCOME (EXPENSE) - NET	(288)	(179)	(546)	(361)
NET INCOME (LOSS) BEFORE TAXES	551	(293)	1,154	(1,186)
INCOME TAXES
NET INCOME (LOSS)	$ 551	$ (293)	$ 1,154	$ (1,186)
NET INCOME (LOSS) PER SHARE
Basic	$ 0.01	$ (0.01)	$ 0.03	$ (0.03)
Diluted	$ 0.01	$ (0.01)	$ 0.02	$ (0.03)
WEIGHTED AVG NUMBER OF SHARES OUTSTANDING
Basic	44,954	42,857	44,827	42,299
Diluted	47,650	42,857	47,501	42,299

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Common Stock Warrants

6 Months Ended

Jun. 30, 2012

Common Stock Warrants [Abstract]

COMMON STOCK WARRANTS

NOTE G — COMMON STOCK WARRANTS

Albitar Warrant

On January 9, 2012 Dr. Maher Albitar was granted a warrant to purchase 200,000 shares of the Company’s common stock (the “Albitar Warrant”) at an exercise price per share of $1.43, which was the closing price per share on the last trading day prior to his start date. This warrant will be treated as a non-employee consultant warrant agreement and as such we revalued the warrant at June 30, 2012. The Albitar Warrant has a five year term and vests in accordance with the performance criteria as follows:

(i) 80,000 will vest upon the commercial launch of the Company’s gene-based plasma prostate cancer test licensed from Health Discovery Corp (“HDC”) or similar test based on our mutual agreement.

(ii) 40,000 will vest upon the commercial launch of the Company’s gene-based colon cancer test licensed from HDC or similar test based on our mutual agreement.

(iii) 40,000 will vest upon the commercial launch of the Company’s gene-based pancreatic cancer test licensed from HDC or similar test based on our mutual agreement.

(iv) 20,000 will vest upon successful consummation of a sublicensing agreement with an instrument manufacturer to commercialize the cytogenetics automated image analysis technology licenses from HDC

(v) 20,000 will vest upon successful consummation of a sublicensing agreement with an instrument manufacturer to commercialize the flow cytometry automated image analysis technology licenses from HDC

In the event of a change of control of the Company in which the consideration payable to common stockholders of the Company has a deemed value of at least $4.00 per share, any unvested portion of the Albitar Warrant will immediately vest in full.

On June 30, 2012 this Albitar Warrant was valued at $130,678 and we recorded approximately $15,000 and $32,500 of stock compensation expense related to the Albitar Warrant for the three and six months ended June 30, 2012.

Warrant exercises

In March 2012, a former member of our board of directors exercised 100,000 warrants in a cashless net exercise which resulted in him receiving 10,571 shares of our common stock

In June 2012, 550,000 warrants previously issued in June 2007 to then members of our board of directors and 348,417 warrants issued in June 2007 as part of a common stock offering were exercised or expired as follows:

Type of Exercise	Warrant Shares		Exercise Price / Share		Cash Received		Common Stock Shares Issued
For cash		175,000	$	1.50	$	262,500		175,000
Cashless net exercise		575,000	$	1.50	$	—		64,495
Expired unexercised		98,417	$	1.50	$	—		—

Warrant activity for the six months ended June 30, 2012 is summarized as follows:

	Shares			Weighted Average Exercise Price
Warrants outstanding, December 31, 2011		2,156,750		$	1.34
Granted		200,000			1.43
Exercised		(900,000	)		1.50
Expired		(98,417	)		1.50
Cancelled		—			—
Warrants outstanding, June 30, 2012		1,358,333			1.24

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Stock Options

6 Months Ended

Jun. 30, 2012

Stock Options [Abstract]

STOCK OPTIONS

NOTE F — STOCK OPTIONS

On January 9, 2012, Dr. Maher Albitar, our Chief Medical Officer was granted a stock option to purchase 250,000 shares of the Company’s common stock at an exercise price per share of $1.43, which was the closing price per share on the last trading day prior to his start date. The stock option has a five year term and becomes 25% vested on each of the first four anniversaries of his start date. The stock option also fully vests upon a change of control of the Company. This stock option will be treated as a non-employee consultant option agreement and as such we revalued the stock option at June 30, 2012. The stock option was valued at $173,411 and we recorded $18,864 and $39,378 of stock compensation expense related to the stock options in the three and six months ended June 30, 2012.

On February 14, 2012, Mr. VanOort, our Chief Executive Officer was granted a supplemental non-qualified stock option to purchase 800,000 shares of common stock at an exercise price of $1.71 per share which has a five year term so long as Mr. VanOort remains an employee of the Company (the “Supplemental Options”). The Supplemental Options are scheduled to vest according to the passage of time with 200,000 shares vesting each year on the anniversary of the grant date for the first four years after the grant. The Supplemental Options are valued at $505,000 based on a trinomial lattice model and we recorded $30,113 and $89,684 of stock compensation expense related to the Supplemental Options in the three and six months ended June 30, 2012.

In the event of a change of control of the Company in which the consideration payable to common stockholders of the Company has a deemed value of at least $4.00 per share, any unvested portion of the Supplemental Options will immediately vest in full.

As of June 30, 2012, stock options to purchase 5,942,003 shares of our common stock were outstanding. The exercise prices of these options range from $0.25 to $1.71 per share.

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Intangible Assets (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012
Classes of intangible assets
Accumulated Amortization	$ 70
Support Vector Machine (SVM) technology [Member]
Classes of intangible assets
Weighted Average Amortization Period	108 months
COST	500
Accumulated Amortization	28
Net	472
Laboratory developed test (LDT) technology [Member]
Classes of intangible assets
Weighted Average Amortization Period	164 months
COST	1,482
Accumulated Amortization	27
Net	1,455
Flow Cytometry and Cytogenetics technology [Member]
Classes of intangible assets
Weighted Average Amortization Period	202 months
COST	1,000
Accumulated Amortization	15
Net	$ 985

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Common Stock Warrants (Tables)

6 Months Ended

Jun. 30, 2012

Common Stock Warrants [Abstract]

Warrants issued to members of board of directors

In June 2012, 550,000 warrants previously issued in June 2007 to then members of our board of directors and 348,417 warrants issued in June 2007 as part of a common stock offering were exercised or expired as follows:

Type of Exercise	Warrant Shares		Exercise Price / Share		Cash Received		Common Stock Shares Issued
For cash		175,000	$	1.50	$	262,500		175,000
Cashless net exercise		575,000	$	1.50	$	—		64,495
Expired unexercised		98,417	$	1.50	$	—		—

Warrant Activity

Warrant activity for the six months ended June 30, 2012 is summarized as follows:

	Shares			Weighted Average Exercise Price
Warrants outstanding, December 31, 2011		2,156,750		$	1.34
Granted		200,000			1.43
Exercised		(900,000	)		1.50
Expired		(98,417	)		1.50
Cancelled		—			—
Warrants outstanding, June 30, 2012		1,358,333			1.24

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Subsequent Events

6 Months Ended

Jun. 30, 2012

Subsequent Events [Abstract]

Subsequent Events

NOTE J — SUBSEQUENT EVENTS

On July 17, 2012 the Internal Revenue Service completed its audit of our fiscal year 2009 and 2010 tax returns. The audit resulted in a small proposed adjustment to our Net Operating Loss carry forward which resulted from the Therapeutic Discovery Grant being considered as a reduction of expenses for tax purposes. As a result of the audit our net operating loss tax carry forward of federal and state income taxes changed to $16,249,164 at December 31, 2011 from $16,683,683 as previously disclosed in our Annual Report on Form 10K as filed with the Securities and Exchange Commission on March 12, 2012. Since we did not meet the standard established by ASC Topic 740 at December 31, 2011 we had a valuation allowance to fully reserve our deferred tax asset and that reserve will also change to $16,249,164 as well.

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Capital Leases

6 Months Ended

Jun. 30, 2012

Capital Leases [Abstract]

CAPITAL LEASES

NOTE H — CAPITAL LEASES

Garic Lease

On September 9, 2011, we entered into a master lease agreement for an equipment lease line of credit with Garic, Inc. The facility has a 12 month draw down period and each schedule has a thirty six month term. The lease has a fair market value option at the end of the term at a price not to exceed fifteen percent of the equipment cost or the right to return the equipment. As of June 30, 2012 the specifics of the facility were as follows:

Description	Facility Amount		FY 2012 Leased Amounts		Outstanding Amount		Available Amount		Interest Rate			Term
Lease Facility	$	1,000,000		358,000		558,000		442,000		16.12	%		36 months

Wells Fargo

In June 2012, we entered into a five year, $1 buyout equipment lease of approximately $495,000 for the purchase of laboratory equipment with Wells Fargo Lease Equipment Financing. The lease has an interest rate of approximately 6%.

Other Vendor Leasing

During the six months ended June 30, 2012, we entered into several vendor lease arrangements for approximately $1,120,000, primarily for the acquisition of lab equipment and to a lesser extent computer hardware. These capital leases are for 36 to 60 month terms, have either $1 purchase options or were fair market value at the end of the term, and approximate interest rates between 8% and 16%.

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Other Related Party Transactions

6 Months Ended

Jun. 30, 2012

Other Related Party Transactions [Abstract]

OTHER RELATED PARTY TRANSACTIONS

NOTE I — OTHER RELATED PARTY TRANSACTIONS

During the three months ended June 30, 2012 and 2011, Steven C. Jones, a director of the Company, earned approximately $52,500 and $50,000, respectively, for various consulting work performed in connection with his duties as Executive Vice President of Finance. During the six months ended June 30, 2012 and 2011, he earned approximately $102,500 and $101,000, respectively, for various consulting work performed in connection with his duties as Executive Vice President of Finance. Mr. Jones also received $55,000 and $6,000 for the six months ended June 30, 2012 and 2011 as payment of his annual bonus compensation for the previous fiscal year.

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2012

Summary of Significant Accounting Policies [Abstract]

Use of Estimates

Use of Estimates

The Company prepares its consolidated financial statements in conformity with accounting principles generally accepted in the United States of America. These principles require management to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, together with amounts disclosed in the related notes to the consolidated financial statements. Actual results and outcomes may differ from management’s estimates, judgments and assumptions. Significant estimates, judgments and assumptions used in these consolidated financial statements include, but are not limited to, those related to revenues, accounts receivable and related reserves, contingencies, useful lives and recovery of long-term and intangible assets, income taxes, and the fair value of stock-based compensation. These estimates, judgments, and assumptions are reviewed periodically and the effects of material revisions in estimates are reflected in the consolidated financial statements prospectively from the date of the change in estimate.

Research and Development

Research and Development

Research and development costs are expensed as incurred. Research and development expenses consist of compensation and benefits for research and development personnel, amortization of intangibles, related supplies, inventory and payment for samples to complete validation studies. These expenses were incurred to develop new genetic tests.

Intangible Assets

Intangible Assets

Intangible assets with finite useful lives are recorded at fair value which is our cost, less accumulated amortization. Amortization is recognized over the estimated useful lives of the assets. The Company’s intangible assets are related to our license agreement with Health Discovery Corporation.

Concentrations of Credit Risk

Concentrations of Credit Risk

Concentrations of credit risk with respect to revenue and accounts receivable are primarily limited to certain clients to whom the Company provides a significant volume of its services, and to specific payers of our services such as Medicare and individual insurance companies. The Company’s client base consists of a large number of geographically dispersed clients diversified across various customer types. Over the last year, we have expanded our relationship with a large oncology practice with multiple office locations, each of which is a separate client to NeoGenomics. For the three months ended June 30, 2012, all of the affiliated client office locations from this oncology practice combined represented approximately 15.3% of our revenue compared to 9.9% of revenue for the quarter ended June 30, 2011 and for the six months ended June 30, 2012 represented approximately 16.6% of our revenue compared to 6.0% of revenue for the six months ended June 30, 2011. All other clients were less than 5% of total revenue individually.

Income Taxes

Income Taxes

We compute income taxes in accordance with applicable accounting standards. Deferred taxes are recognized for the tax consequences of temporary differences by applying enacted statutory rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. Also, the effect on deferred taxes of a change in tax rates is recognized in income in the period that included the enactment date. Temporary differences between financial and tax reporting arise primarily from the use of different depreciation methods for property and equipment, stock based compensation expense and the timing of recognition of bad debts.

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Other Related Party Transactions (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Other Related Party Transactions (Textual) [Abstract]
Payment Of Annual Bonus Compensation			$ 55,000	$ 6,000
Executive Vice President [Member]
Other Related Party Transactions (Textual) [Abstract]
Fees for consulting work performed	$ 52,500	$ 50,000	$ 102,500	$ 101,000

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Summary of Significant Accounting Policies (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Summary of significant accounting policies (Textual) [Abstract]
Oncology practice combined represented revenue	15.30%	9.90%	16.60%	6.00%
Revenue of all other clients individually			less than 5%

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Net Income (Loss) Per Share (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Computation of Basic and diluted earnings (loss) per share
Net income (loss)	$ 551	$ (293)	$ 1,154	$ (1,186)
Basic weighted average shares outstanding	44,954	42,857	44,827	42,299
Effect of potentially dilutive securities	2,696		2,674
Diluted weighted average shares outstanding	47,650	42,857	47,501	42,299
Basic EPS	$ 0.01	$ (0.01)	$ 0.03	$ (0.03)
Diluted EPS	$ 0.01	$ (0.01)	$ 0.02	$ (0.03)

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Consolidated Statements of Cash Flows (Unaudited) (USD $)	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ 1,154,000	$ (1,186,000)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Provision for bad debts	1,735,000	1,109,000
Amortization of intangibles	70,000
Depreciation of property and equipment	1,605,000	963,000
Amortization of debt issue costs	19,000	21,000
Stock-based compensation - options	258,000	179,000
Stock-based compensation - warrants and restricted stock	84,000	70,000
Changes in assets and liabilities, net:
(Increase) decrease in accounts receivable, net of write-offs	(5,168,000)	(3,028,000)
(Increase) decrease in inventories	(324,000)	(192,000)
(Increase) decrease in prepaid expenses	98,000	340,000
(Increase) decrease in other current assets	6,000	(2,000)
Increase (decrease) in accounts payable and other liabilities	479,000	672,000
NET CASH USED IN OPERATING ACTIVITIES	16,000	(1,054,000)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of intangible assets	(1,013,000)
Purchases of property and equipment	(1,037,000)	(125,000)
NET CASH USED IN INVESTING ACTIVITIES	(2,050,000)	(125,000)
CASH FLOWS FROM FINANCING ACTIVITIES
Restricted cash	200,000
Advances (payments) on credit facility, net	2,495,000	377,000
Repayment of capital leases	(1,104,000)	(753,000)
Issuance of common stock and warrants for cash , net of transaction expenses	381,000	3,090,000
NET CASH PROVIDED BY FINANCING ACTIVITIES	1,972,000	2,714,000
NET INCREASE IN CASH AND CASH EQUIVALENTS	(62,000)	1,535,000
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	2,628,000	1,097,000
CASH AND CASH EQUIVALENTS, END OF PERIOD	2,566,000	2,632,000
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest paid	529,000	344,000
Income taxes paid
NON-CASH INVESTING AND FINANCING ACTIVITIES
Equipment leased under capital leases	2,140,000	523,000
Non-cash intangible asset purchase	$ 1,945,000

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Net Income (Loss) Per Share

6 Months Ended

Jun. 30, 2012

Net Income (Loss) Per Share [Abstract]

NET INCOME (LOSS) PER SHARE

NOTE E — NET INCOME (LOSS) PER SHARE

Basic net income (loss) per share is computed using the weighted average number of common shares outstanding during the applicable period. Diluted net income per share is computed using the weighted average number of common shares outstanding during the applicable period, plus the dilutive effect of potential common stock. Potential common stock consists of shares issuable pursuant to stock options and warrants. Diluted net (loss) per share is computed using the weighted average number of common shares outstanding during the applicable period. Potential common stock is excluded from diluted net (loss) per share as such amounts are anti-dilutive. Calculations of net income (loss) per share are done using the treasury stock method.

The following table provides the computation of basic and diluted net income (loss) per share for the three and six month periods ending June 30, 2012 and 2011: (in thousands, except per share amounts)

	Three Months Ended June 30,					Six Months Ended June 30,
	2012		2011			2012		2011
Net income (loss)	$	551	$	(293	)	$	1,154	$	(1,186	)
Basic weighted average shares outstanding		44,954		42,857			44,827		42,299
Effect of potentially dilutive securities		2,696		—			2,674		—
Diluted weighted average shares outstanding		47,650		42,857			47,501		42,299
Basic net income (loss) per share	$	0.01	$	(0.01	)	$	0.03	$	(0.03	)
Diluted net income (loss) per share	$	0.01	$	(0.01	)	$	0.02	$	(0.03	)

Outstanding stock options to acquire an aggregate 884,499 and 904,499 shares of common stock for the three and six months ended June 30, 2012 were excluded in the calculation of diluted earnings per share because the exercise prices of these stock options were greater than the average market price of the Company’s common stock during the respective periods. As a result, the effect of including these options would be anti-dilutive.

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Net Income (Loss) Per Share (Details Textual)	3 Months Ended	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2012
Earnigs Per Share (Textual Abstract)
Outstanding stock options	884,499	904,499

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Capital Leases (Tables)

6 Months Ended

Jun. 30, 2012

Capital Leases [Abstract]

Equipment facilities

The lease has a fair market value option at the end of the term at a price not to exceed fifteen percent of the equipment cost or the right to return the equipment. As of June 30, 2012 the specifics of the facility were as follows:

Description	Facility Amount		FY 2012 Leased Amounts		Outstanding Amount		Available Amount		Interest Rate			Term
Lease Facility	$	1,000,000		358,000		558,000		442,000		16.12	%		36 months