Basis of Presentation and Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Company's allowance for doubtful accounts and billing adjustments

The following table summarizes our allowance for doubtful accounts, billing adjustments, and contractual allowances as of and for the years ended December 31, 2019, and 2018 (in thousands):



	Allowance for Doubtful Accounts ⁽¹⁾				Reserve for Billing Adjustments⁽²⁾				Reserve for Contractual Allowances⁽²⁾
Balance at December 31, 2017		$	553			$	9			$	447
Provision adjustment		180				219				19,221
Write-offs and recoveries, net		(301		)		(210		)		(19,668		)
Balance at December 31, 2018		432				18				—
ATRM beginning balance		223				—				—
Provision adjustment		227				248				—
Write-offs and recoveries, net		(234		)		(246		)		—
Balance at December 31, 2019		$	648			$	20			$	—


⁽¹⁾	The provision was charged against general and administrative expenses.


⁽²⁾	The provision was charged against services revenue. Contractual allowance was written off due to sale of Telerhythmics.

Schedule of excess and obsolete inventory

The following table summarizes our reserves for excess and obsolete inventory as of and for the years ended December 31, 2019 and 2018 (in thousands):



	Reserve for Excess and Obsolete Inventories⁽¹⁾
Balance at December 31, 2017		$	453
Provision adjustment		42
Write-offs and scrap ⁽²⁾		(115		)
Balance at December 31, 2018		380
Provision adjustment		50
Write-offs and scrap		(47		)
Balance at December 31, 2019		$	383


⁽¹⁾	The provision was charged against Product and product-related cost of revenues.


⁽²⁾	Amount includes $90 thousand related to inventory sold during the year.

Schedule of Company's warranty reserve activity

The activities related to our warranty reserve for the years ended December 31, 2019 and 2018 are as follows (in thousands):



	Year Ended December 31,
	2019			2018
Balance at beginning of year	$	197		$	204
ATRM beginning balance	60			—
Charges to cost of revenues	547			279
Applied to liability	(383		)	(286		)
Balance at end of year	$	421		$	197

Schedule of basic and diluted net (loss) income per share computations

The following table sets forth the computation of basic and diluted net (loss) income per share for the periods indicated (in thousands, except per share amounts):



	Year Ended December 31,
	2019			2018
Numerator:
Loss from continuing operations, net of tax	$	(4,893	)	$	(3,839	)
Deemed dividend on Series A redeemable preferred stock	(596		)	—
Net loss from continuing operations attributable to common shareholders	(5,489		)	(3,839		)
Income from discontinued operations, net of tax	266			4,575
Net (loss) income attributable to common shareholders	$	(5,223	)	$	736

Denominator:
Weighted average shares outstanding - basic	2,041			2,016
Dilutive potential common shares:
Stock options	—			—
Restricted stock units	—			—
Weighted average shares outstanding - diluted	2,041			2,016

Net income (loss) per common share - basic and diluted
Net loss per share, continuing operations	$	(2.40	)	$	(1.90	)
Preferred dividends per share	(0.29		)	—
Net loss per share, continuing operations attributable to common shareholders	$	(2.69	)	$	(1.90	)
Net income per share, discontinued operations attributable to common shareholders	0.13			2.27
Net (loss) income per share, attributable to common shareholders - basic and diluted ⁽¹⁾	$	(2.56	)	$	0.37

⁽¹⁾ Earnings per share may not add due to rounding.

Schedule of antidilutive weighted average outstanding common stock equivalents

The following weighted-average outstanding common stock equivalents were not included in the calculation of diluted net income (loss) per share because their effect was antidilutive (in thousands):



	Year Ended December 31,
	2019	2018
Stock options	54	34
Restricted stock units	24	16
Total	78	50