|
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
|
|
Exhibit 23.2
Baker Tilly US, LLP | |
18500 Von Karman Avenue, 10th Flr. | |
Irvine, CA 92612 | |
United States of America | |
T: +1 (949) 222-2999 | |
F: +1 (949) 222-2289 | |
bakertilly.com |
Consent of Independent Registered Public Accounting Firm
We consent to the use in this Post-Effective Amendment No. 1 to the Registration Statement (No. 333-251829) on Form S-1 of Assure Holdings Corp. of our report dated March 30, 2021, relating to the consolidated financial statements of Assure Holdings Corp, appearing in the Prospectus, which is part of this Registration Statement.
We also consent to the reference to our firm under the heading “Experts”.
BAKER TILLY US, LLP
Irvine, California
March 30, 2021
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