0001171843-20-007845.txt : 20201110 0001171843-20-007845.hdr.sgml : 20201110 20201110112212 ACCESSION NUMBER: 0001171843-20-007845 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 57 CONFORMED PERIOD OF REPORT: 20200930 FILED AS OF DATE: 20201110 DATE AS OF CHANGE: 20201110 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PSYCHEMEDICS CORP CENTRAL INDEX KEY: 0000806517 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MEDICAL LABORATORIES [8071] IRS NUMBER: 581701987 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-13738 FILM NUMBER: 201300132 BUSINESS ADDRESS: STREET 1: 125 NAGOG PARK CITY: ACTON STATE: MA ZIP: 01720 BUSINESS PHONE: 978-206-8220 MAIL ADDRESS: STREET 1: 125 NAGOG PARK CITY: ACTON STATE: MA ZIP: 01720 10-Q 1 f10q_111020p.htm FORM 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 10-Q

 

Quarterly report pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934

 

For the quarterly period ended September 30, 2020

 

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: 1-13738

 

PSYCHEMEDICS CORPORATION

(Exact Name of Registrant as Specified in its Charter)

 

Delaware  58-1701987
(State or Other Jurisdiction of  (I.R.S. Employer Identification No.)
Incorporation or Organization)   
    
289 Great Road   
Acton, MA  01720
(Address of Principal Executive Offices)  (Zip Code)

 

Registrant's telephone number including area code: (978) 206-8220

 

 

Securities registered pursuant to section 12(b) of the act:

 

Title of Class Trading Symbol(s) Name of each exchange on which registered
Common stock. $0.005 par value PMD The Nasdaq Stock Market, LLC.

 

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

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

 

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

 

  Large accelerated filer
  Accelerated filer
  Non–accelerated filer
  Smaller reporting company
  Emerging growth company

 

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

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Securities Exchange Act of 1934). Yes ☐ No ☒

 

The number of shares of Common Stock of the Registrant, par value $0.005 per share, outstanding at November 3, 2020 was 5,526,493.

 

 

 

 

PSYCHEMEDICS CORPORATION

FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 2020

 

INDEX

 

  Page
PART I - FINANCIAL INFORMATION  
   
Item 1 - Financial Statements (unaudited)  
  Condensed Consolidated Balance Sheets 3
  Condensed Consolidated Statements of Operations and Comprehensive Income /(Loss) 4
  Condensed Consolidated Statements of Shareholders’ Equity 5
  Condensed Consolidated Statements of Cash Flows 6
  Notes to Condensed Consolidated Financial Statements 7
     
Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations
     
  Overview 16
  Results of Operations 16
  Liquidity and Capital Resources 17
     
Item 4 - Controls and Procedures 18
     
PART II - OTHER INFORMATION  
Item 1A - Risk Factors 19
Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds 20
Item 6 - Exhibits 20
   
Signatures 20

 

 

 

 

 

 

 

 

PSYCHEMEDICS CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except par value)

(UNAUDITED)

 

   September 30,  December 31,
   2020  2019
       
ASSETS          
Current Assets:          
Cash  $1,809   $7,283 
Accounts receivable, net of allowance for doubtful accounts of $40 in 2020 and $45 in 2019   3,890    3,780 
Prepaid expenses and other current assets   1,299    1,788 
Income tax receivable   1,833    -- 
           
Total Current Assets   8,831    12,851 
           
Fixed assets, net of accumulated amortization and depreciation of $16,257 in 2020 and $16,197 in 2019   9,746    10,862 
Other assets   885    943 
Deferred tax asset   10    -- 
Operating lease right-of-use assets   4,508    2,875 
           
Total Assets  $23,980   $27,531 
           
LIABILITIES AND SHAREHOLDERS' EQUITY          
           
Current Liabilities:          
Accounts payable  $416   $617 
Accrued expenses   1,357    3,577 
Current portion of long-term debt   685    678 
Current portion of operating lease liabilities   884    963 
           
Total Current Liabilities   3,342    5,835 
           
Long-term debt   3,617    1,951 
Long-term deferred tax liabilities   --    550 
Long-term portion of operating lease liabilities   4,079    2,375 
Total Liabilities   11,038    10,711 
           
Commitments and Contingencies (Note 6)          
           
Shareholders' Equity:          
Preferred stock, $0.005 par value, 873 shares authorized, no shares issued or outstanding   --    -- 
Common stock, $0.005 par value; 50,000 shares authorized Shares issued and outstanding: 6,195 in 2020 and 6,185 in 2019   31    31 
Additional paid-in capital   32,690    32,249 
Accumulated deficit   (8,063)   (3,754)
Less - Treasury stock, at cost, 668 shares   (10,082)   (10,082)
Accumulated other comprehensive loss   (1,634)   (1,624)
           
Total Shareholders' Equity   12,942    16,820 
           
Total Liabilities and Shareholders' Equity  $23,980   $27,531 

 

See accompanying notes to condensed consolidated financial statements

 

 3 

 

 

PSYCHEMEDICS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME/(LOSS)

(in thousands, except per share amounts)

(UNAUDITED)

 

   Three Months Ended  Nine Months Ended
   September 30,  September 30,
   2020  2019  2020  2019
             
Revenues  $5,174   $9,852   $16,025   $28,963 
Cost of revenues   4,041    5,470    12,416    16,004 
                     
Gross profit   1,133    4,382    3,609    12,959 
                     
                     
Operating Expenses:                    
General & administrative   1,341    1,417    4,727    4,687 
Marketing & selling   896    1,238    2,858    3,455 
Research & development   305    393    981    1,213 
                     
Total Operating Expenses   2,542    3,048    8,566    9,355 
                     
Operating income (loss)   (1,409)   1,334    (4,957)   3,604 
Other income (expense), net   (17)   6    (129)   54 
                     
Income (loss) before provision for (benefit from) income taxes   (1,426)   1,340    (5,086)   3,658 
                     
Provision for (benefit from) income taxes   (319)   663    (1,770)   1,586 
                     
Net income (loss)  $(1,107)  $677   $(3,316)  $2,072 
                     
Other comprehensive income (loss):                    
Foreign currency translation   -    (330)   (10)   (297)
Total comprehensive income (loss)  $(1,107)  $347   $(3,326)  $1,775 
                     
Basic net income (loss) per share  $(0.20)  $0.12   $(0.60)  $0.38 
                     
Diluted net income (loss) per share  $(0.20)  $0.12   $(0.60)  $0.37 
                     
Dividends declared per share  $-   $0.18   $0.18   $0.54 

 

See accompanying notes to condensed consolidated financial statements

 

 4 

 

 

PSYCHEMEDICS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(in thousands, except per share amounts)

(UNAUDITED)

 

   Common  Paid-In  Treasury  Accumulated  Accumulated Other   
   Stock  Capital  Stock  Deficit  Comprehensive Loss  Total
BALANCE, December 31, 2019  $31   $32,249   $(10,082)  $(3,754)  $(1,624)  $16,820 
Stock compensation expense   -    163    -    -    -    163 
Cash dividends ($0.18 per share)   -    -    -    (993)   -    (993)
Net loss   -    -    -    (159)   -    (159)
Other comprehensive loss   -    -    -    -    (23)   (23)
BALANCE, March 31, 2020   31    32,412    (10,082)   (4,906)   (1,647)   15,808 
Tax withholding from employee stock plans   -    (8)   -    -    -    (8)
Stock compensation expense   -    160    -    -    -    160 
Net loss   -    -    -    (2,050)   -    (2,050)
Other comprehensive income   -    -    -    -    14    14 
BALANCE, June 30, 2020   31    32,564    (10,082)   (6,956)   (1,633)   13,924 
Stock compensation expense   -    126    -    -    -    126 
Net loss   -    -    -    (1,107)   -    (1,107)
Other comprehensive loss   -    -    -    -    (1)   (1)
BALANCE, September 30, 2020  $31   $32,690   $(10,082)  $(8,063)  $(1,634)  $12,942 
                               
                               
BALANCE, December 31, 2018  $31   $31,523   $(10,082)  $(1,326)  $(1,399)  $18,747 
Stock compensation expense   -    158    -    -    -    158 
Cash dividends ($0.18 per share)   -    -    -    (991)   -    (991)
Net income   -    -    -    627    -    627 
Other comprehensive loss   -    -    -    -    (48)   (48)
BALANCE, March 31, 2019   31    31,681    (10,082)   (1,690)   (1,447)   18,493 
                               
Tax withholding from employee stock plans   -    (33)   -    -    -    (33)
Stock compensation expense   -    161    -    -    -    161 
Cash dividends ($0.18 per share)   -    -    -    (994)   -    (994)
Net income   -    -    -    768    -    768 
Other comprehensive income   -    -    -    -    82    82 
BALANCE, June 30, 2019   31    31,809    (10,082)   (1,916)   (1,365)   18,477 
Stock compensation expense   -    190    -    -    -    190 
Cash dividends ($0.18 per share)   -    -    -    (993)   -    (993)
Net income   -    -    -    677    -    677 
Other comprehensive loss   -    -    -    -    (331)   (331)
BALANCE, September 30, 2019  $31   $31,999   $(10,082)  $(2,232)  $(1,696)  $18,020 

 

See accompanying notes to condensed consolidated financial statements

 

 5 

 


PSYCHEMEDICS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(UNAUDITED)

 

   Nine Months Ended
   September 30,
   2020  2019
           
CASH FLOWS FROM OPERATING ACTIVITIES:          
Net income (loss)  $(3,316)  $2,072 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:          
Depreciation and amortization   1,995    2,219 
ROU asset amortization   713    -- 
Deferred income taxes   (560)   (138)
Non-cash interest income   --    35 
Loss on sale of fixed assets   94    -- 
Stock-based compensation   449    509 
Changes in assets and liabilities:          
Accounts receivable   (110)   (342)
Other current assets   (1,344)   (439)
Accounts payable   (204)   (335)
Operating lease liabilities   (721)   -- 
Accrued expenses   (2,219)   (220)
Net cash provided by (used in) operating activities   (5,223)   3,361 
           
CASH FLOWS FROM INVESTING ACTIVITIES:          
Proceeds from sale of fixed assets   140    -- 
Proceeds from short-term investments   --    3,810 
Purchases of equipment and leasehold improvements   (880)   (896)
Cost of internally developed software   (184)   (225)
Other assets   10    (47)
Net cash provided by (used in) investing activities   (914)   2,642 
           
CASH FLOWS FROM FINANCING ACTIVITIES:          
Proceeds from issuance of stock, net of tax withholding   (8)   (33)
Proceeds from PPP loan   2,181    -- 
Payments of equipment financing   (507)   (312)
Cash dividends paid   (993)   (2,978)
Net cash provided by (used in) financing activities   673    (3,323)
           
Effect of exchange rate changes on cash and cash equivalents   (10)   (257)
Net increase (decrease) in cash   (5,474)   2,423 
Cash, beginning of period   7,283    4,069 
Cash, end of period  $1,809   $6,492 
           
Supplemental Disclosures of Cash Flow Information:          
Cash paid for income taxes  $236   $1,958 
Cash paid for interest  $60   $47 
Cash paid for operating leases  $800   $841 
Right-of-use assets acquired through operating leases  $2,346   $4,382 
Purchases of equipment through accounts payable and accrued liabilities  $3   $30 

 

See accompanying notes to condensed consolidated financial statements

 

 6 

 

 

PSYCHEMEDICS CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

 

1.Basis of Presentation

 

The interim condensed consolidated financial statements of Psychemedics Corporation (the “Company”) presented herein, have been prepared pursuant to the rules of the Securities and Exchange Commission (“SEC”) for quarterly reports on Form 10-Q and do not include all the information and note disclosures required by accounting principles generally accepted in the United States of America. These statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2019, included in the Company's 2019 Annual Report on Form 10-K (“10-K”), as filed with the SEC.

 

The condensed consolidated balance sheet as of September 30, 2020, the condensed consolidated statements of operations and comprehensive income (loss) for the three-month and nine-month periods ended September 30, 2020 and 2019, the condensed consolidated statements of shareholders’ equity for the nine-month periods ended September 30, 2020 and 2019 and the condensed consolidated statements of cash flows for the nine-month periods ended September 30, 2020 and 2019 are unaudited but, in the opinion of management, include all adjustments necessary for a fair presentation of results for these interim periods. The condensed consolidated balance sheet as of December 31, 2019 has been derived from the Company’s annual financial statements that were audited by an independent registered public accounting firm, but does not include all of the information and footnotes required for complete annual financial statements.

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The results of operations for the three months and nine months ended September 30, 2020 may not be indicative of the results that may be expected for the year ending December 31, 2020, or any other period.

 

Unless the context requires otherwise, the terms “we”, “us”, “our”, or “the Company” refer to Psychemedics Corporation and its consolidated subsidiaries.

 

2. COVID-19 Pandemic

 

The outbreak of coronavirus (“COVID-19”) which was declared by the World Health Organization to be a pandemic, has, and is expected to continue to impact worldwide economic activity. While our domestic business has been deemed an essential business and we continue to provide services to our customers, COVID-19 has had a significant impact on our entire operations. Additionally, COVID-19’s effect on the overall economy has had an adverse impact on hiring, which is having a negative impact on our testing volume. Due to COVID-19, the Brazilian government closed all driver license bureaus and extended the renewal period for all drivers licenses, which has, and will continue to have a material adverse impact on expected testing volume in Brazil for the next year.

 

 7 

 

 

PSYCHEMEDICS CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

2. COVID-19 Pandemic (continued)

 

The Coronavirus Aid, Relieve and Economic Security Act (“CARES”) Act, enacted on March 27, 2020, was an emergency economic stimulus package that included spending provisions and tax cuts to strengthen the United States economy and to fund a nationwide effort to curtail the effect of COVID-19. The principal impact of the CARES Act was the adoption of the Paycheck Protection Program described below. The CARES Act also provided sweeping tax changes in response to the COVID-19 pandemic, including amendments to certain provisions of the previously enacted Tax Cuts and Jobs Act (“TCJA”). The Company recognized a provision of $0.1 million and a benefit of $1.3 million for the three and nine months ended September 30, 2020, respectively, as a component of income tax expense from continuing operations related to the tax provisions in the CARES Act. Based on the Company's initial assessments, the Company anticipates that the CARES Act will allow the Company to defer the employer portion of its FICA taxes to 2021 and 2022 and allow the Company to fully carryback the anticipated 2020 net operating loss, if any, for a refund of taxes previously paid. The Company continues to review the tax-related provisions of the CARES Act and its potential impact on the Company.

 

Paycheck Protection Program Loan

 

On May 1, 2020, the Company entered into a term loan with Bank of America N.A. under the Paycheck Protection Program (“PPP”) administered by the United States Small Business Administration (“SBA”) under the CARES Act. The principal amount of the loan was $2,181,157, which is evidenced by a promissory note with a maturity date of May 4, 2022. The note bears interest on the unpaid balance at the rate of one percent (1%) per annum. The note contains a deferral period of six months, for which no interest or principal payments are due. The Company is in the process of applying for loan forgiveness with the SBA and expects a final approval by the end of fiscal 2020 or in the first quarter of 2021.

 

Accounts Receivable

 

We believe our allowance for credit losses related to our accounts receivable remained adequate as of September 30, 2020, due to the essential nature of our customers business, as well as the diversity of our large customer base. While we anticipate there could be an increase in the aging of our accounts receivable, we do not anticipate a significant increase in default risk.

 

Risk and Uncertainties

 

The duration and severity of COVID-19-related potential disruptions involve risks and uncertainties and it is not possible at this time to estimate the full impact on our business and could adversely affect our estimates, results of operations and financial condition.

 

To help mitigate potential effects of the pandemic on the Company, there are several safety measures that have been implemented to ensure the safety of our employees as well as maintaining our staff and business continuity. The Company is providing personal protection equipment and implemented policies at our laboratory including temperature checks and physical distancing.

 

 8 

 

 

PSYCHEMEDICS CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

 

3.       Fair Value Measurements

 

The Company has financial instruments, such as accounts receivable, accounts payable, and accrued expenses, which are stated at carrying amounts that approximate fair value because of the short maturity of those instruments. The carrying amount of the Company’s long-term debt approximates fair value as the interest rate on the debt approximates the estimated borrowing rate currently available to the Company.

 

4.Stock-Based Compensation

 

The Company’s 2006 Incentive Plan (“the Plan”) provides for cash-based awards or the grant or issuance of stock-based awards. As of September 30, 2020, 231 thousand shares remained available for future grant under the Plan.

 

Share-based compensation is measured at the grant date based on the fair value of the award and is recognized as an expense over the requisite service period (generally the vesting period of the equity grant). The compensation cost charged against income is included in cost of revenues and operating expenses as follows (in thousands):

 

   Three Months Ended  Nine Months Ended
   September 30,  September 30,
   2020  2019  2020  2019
Share-based compensation related to:                    
Stock option grants  $102   $151   $353   $372 
Restricted Stock Unit awards   24    39    96    137 
Total share-based compensation  $126   $190   $449   $509 

 

There was no income tax benefit recognized in the condensed consolidated statements of income for share-based compensation arrangements for the three-month and nine-month periods ended September 30, 2020 and 2019.

 

 9 

 

 

PSYCHEMEDICS CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

 

4.Stock-Based Compensation (continued)

 

A summary of the Company’s stock option activity for the nine months ended September 30, 2020 is as follows (in thousands except per share amounts):

 

      Weighted Average  Weighted Average  Aggregate
   Number of  Exercise Price  Remaining  Intrinsic
   Shares  Per Share  Contractual Life (years)  Value(1)
Outstanding, December 31, 2019   584   $14.94    7.9   $- 
Granted   -                
Exercised   -                
Forfeited   (3)  $4.37           
Outstanding, September 30, 2020   581   $14.93    7.1   $- 
                     
Exercisable, September 30, 2020   396   $15.49    6.6   $- 

 

(1)Stock options had no aggregate intrinsic value as of December 31, 2019 and September 30, 2020. Intrinsic value is calculated based on the amount by which the closing market value of the Company’s stock exceeded the exercise price of the underlying options, multiplied by the number of shares.

 

A summary of the Company’s stock unit award (“SUA”) activity for the nine months ended September 30, 2020 is as follows (in thousands except per share amounts):

 

   Number of Shares 

Weighted Average

Price per Share (2)

 

Weighted Average

Fair Value (2)

          
Outstanding & Unvested, December 31, 2019   24   $12.84   $311 
Granted   -           
Converted to common stock   (10)  $20.24      
Cancelled   (1)  $20.24      
Forfeited   -           
Outstanding & Unvested, September 30, 2020   13   $11.87   $156 

 

(2)Weighted average price per share is the weighted grant price based on the closing market price of each of the stock grants related to each grant of stock unit awards. The weighted average fair value is the weighted average share price times the number of shares.

 

As of September 30, 2020, 820 thousand shares of common stock were reserved for issuance under the Plan. As of September 30, 2020, the unamortized fair value of awards relating to outstanding SUAs and options was $674 thousand, which is expected to be amortized over a weighted average period of 2.2 years.

 

 10 

 

 

PSYCHEMEDICS CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

 

5.       Basic and Diluted Net Income (Loss) Per Share

 

Basic net income (loss) per share is computed by dividing net income (or loss) by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing net income (or loss) by the weighted average number of common and dilutive common equivalent shares outstanding during the period when the effect is dilutive. The number of dilutive common equivalent shares outstanding during the period was determined in accordance with the treasury-stock method. Common equivalent shares consisted of common stock issuable upon the exercise of outstanding options and common stock issuable upon the vesting of outstanding, unvested SUAs. Basic and diluted weighted average common shares outstanding for the three and nine months ended September 30, 2020 and 2019 were as follows (in thousands):

 

   Three Months Ended  Nine Months Ended
   September 30,  September 30,
   2020  2019  2020  2019
Weighted average common shares outstanding, basic   5,526    5,517    5,522    5,513 
Dilutive common equivalent shares   -    -    -    16 
Weighted average common shares outstanding, diluted   5,526    5,517    5,522    5,529 

 

The computation of diluted earnings (loss) per share for the three and nine month period ended September 30, 2020 and 2019 excludes the effect of the potential exercise of stock awards, including stock options, when the effect is anti-dilutive. For the three and nine month periods ended September 30, 2020, the number of antidilutive stock awards excluded from diluted earnings (loss) per share was 594 thousand.

 

6.Commitments and Contingencies

 

The Company is subject to legal proceedings and claims which arise in the ordinary course of its business. While the ultimate outcome of individual legal claims is inherently unpredictable, we believe that the final resolution of any pending actions will not have a material adverse effect on our results of operations, financial position, liquidity or capital resources.

 

 11 

 

 

PSYCHEMEDICS CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

 

7.Operating Leases

 

The Company has five operating leases for office and laboratory space used to conduct business. The exercise of lease renewal options is at our discretion. There is one lease which contains renewal options to extend the lease terms included in our Right-Of-Use (“ROU”) assets and lease liabilities as they are reasonably certain of exercise. The Company regularly evaluates the renewal options and when they are reasonably certain of exercise. As most of the Company’s leases do not provide an implicit rate, the Company uses the incremental borrowing rate based on the information available at the lease commencement date in determining the net present value (NPV) of the lease payments.

 

As of September 30, 2020, the Company recognized a Right-Of-Use (“ROU”) asset of $4.5 million and an operating lease liability of $5.0 million based on the present value of the minimum rental payments as a result of adoption of ASC Topic 842. The weighted average discount rate used for leases as of September 30, 2020 is 3.9%. The weighted average lease term as of September 30, 2020 is 5.2 years. The operating lease expense for the three and nine months ended September 30, 2020 was $288 thousand and $853 thousand, respectively.

 

Maturities and balance sheet presentation of the Company’s lease liabilities for all operating leases as of September 30, 2020 is as follows (in thousands):

 

2020   238 
2021   1,041 
2022   1,028 
2023   1,096 
2024   1,035 
2025   593 
2026   458 
Total Lease Payments   5,489 
Less Interest:   (526)
Present value of lease liabilities  $4,963 
      
Current operating lease liabilities  $884 
Long-term operating lease liabilities   4,079 
Total  $4,963 

 

 12 

 

 

PSYCHEMEDICS CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

 

 

8.Debt and Other Financing Arrangements

 

On March 20, 2014, the Company entered into an equipment financing arrangement (“Loan Agreement”) with Banc of America Leasing & Capital, which it amended on August 8, 2014, September 15, 2015, October 30, 2017, and December 2, 2019. The terms of the arrangement are detailed in the 10-K.

 

The weighted average interest rate on outstanding debt under the Loan Agreement was 3.3% and 3.4% for the three and nine months ended September 30, 2020. The interest expense was $16 thousand and $60 thousand for the three and nine months ended September 30, 2020, respectively. As of September 30, 2020, the weighted average interest rate was 2.6% and there was $2.1 million of outstanding debt related under the loan agreement. As of September 30, 2020, the Company was not in compliance with these covenants. Subsequent to September 30, 2020, the Company amended its debt arrangement to waive the non-compliance and amend certain covenants through the quarter ended June 30, 2021.

 

The annual principal repayment requirements for debt obligations as of September 30, 2020 were as follows (in thousands):

 

2020  $170 
2021   688 
2022   664 
2023   294 
2024   305 
Long-term debt from equipment financing   2,121 
Less current portion of long-term debt   (685)
Long-term debt from equipment financing, net of current portion   1,436 
PPP Loan   2,181 
Total long-term debt, net of current portion  $3,617 

 

1 See note 2. for description of PPP Loan.

 

9.        Revenue

 

The table below disaggregates our external revenue by major source (in thousands).  For additional revenue detail relating to geographic breakdown of sales, see Note 10 – “Business Segment Reporting”.

 

   Three Months Ended  Nine Months Ended
   September 30,  September 30,
   2020  2019  2020  2019
Testing  $4,590   $9,069   $14,363   $26,543 
Shipping/Collection (hair)   562    714    1,576    2,225 
Other   22    69    86    195 
Total Revenue  $5,174   $9,852   $16,025   $28,963 

 

 13 

 

 

PSYCHEMEDICS CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

 

10.        Business Segment Reporting

 

The Company manages its operations as one segment, drug testing services. As a result, the financial information disclosed herein materially represents all of the financial information related to the Company’s principal operating segment. All Brazil sales are through one independent distributor. The Company’s revenues by geographic region are as follows (in thousands):

 

   Three Months Ended  Nine Months Ended
   September 30,  September 30,
   2020  2019  2020  2019
Consolidated Revenue:                    
United States  $4,977   $7,102   $14,441   $20,969 
Brazil   62    2,619    1,207    7,620 
Other   135    131    377    374 
Total Revenue  $5,174   $9,852   $16,025   $28,963 

 

11.Significant Customers

 

The Company had no customers that represented over 10% of revenue during the nine months ended September 30, 2020. One customer represented 26% of revenue for the nine months ended September 30, 2019. The Company had one customer that represented 24% of the total accounts receivable balance as of September 30, 2020 and two customers that represented 13% and 11%, respectively, of the total accounts receivable balance as of December 31, 2019.

 

12.       Recently Adopted Accounting Pronouncements

 

There are no recently adopted accounting pronouncements for the quarter.

 

13.       Accounting Pronouncements Issued But Not Yet Effective

 

In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”, which is intended to simplify the accounting for income taxes. This ASU removes certain exceptions to the general principles in Topic 740 and clarifies and amends existing guidance to improve consistent application. The new standard will be effective beginning January 1, 2021. As of September 30, 2020, the Company is continuing to evaluate the potential impact this ASU may have on its financial position and results of operations upon adoption.

 

 14 

 

 

Item 2.

 

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

FACTORS THAT MAY AFFECT FUTURE RESULTS

 

From time to time, information provided by the Company or statements made by its employees may contain forward-looking information that involves risks and uncertainties. In particular, statements contained in this report that are not historical facts (including but not limited to statements concerning earnings, earnings per share, revenues, cash flows, dividends, future business, growth opportunities, profitability, pricing, new accounts, customer base, market share, test volume, sales and marketing strategies, market demand for drug testing services in Brazil, U.S. and foreign drug testing laws and regulations, including, without limitation, Brazilian professional driver drug testing requirements, required investments in plant, equipment and people and new test development, the effect of the COVID-19 pandemic on our business, including its effects on our business and profitability, and on the well-being and availability of our employees, the continued operation of our testing facilities and loan forgiveness under the PPP program) may be “forward looking” statements. Actual results may differ from those stated in any forward-looking statements. Factors that may cause such differences include but are not limited to risks associated with the severity of the COVID-19 pandemic, and its impact on the Company’s markets, including its impact on the Company’s customers, suppliers and employees, as well as its risk on the United States and worldwide economies, the timing, scope and effectiveness of further governmental, regulatory, fiscal monetary and public health responses to the COVID-19 pandemic, compliance by the Company with repayment forgiveness requirements under the PPP, changes in U.S. and foreign government regulations, including but not limited to FDA regulations, changes in Brazilian laws and regulations and proposed laws and regulations and the implementation of such laws and regulations, currency risks, R&D spending, competition (including, without limitation, competition from other companies pursuing the same growth opportunities), the Company’s ability to maintain its reputation and brand image, the ability of the Company to achieve its business plans, cost controls, leveraging of its global operating platform, risks of information technology system failures and data security breaches, the uncertain global economy, the Company’s ability to attract, develop and retain executives and other qualified employees and independent contractors, including distributors, the Company’s ability to obtain and protect intellectual property rights, litigation risks, general economic conditions With respect to the continued payment of cash dividends, factors include, but are not limited to, all of the factors listed above with respect to the impact of the COVID-19 pandemic on the our business generally, plus cash flows, available surplus, capital expenditure reserves required, debt service obligations, regulatory requirements and other factors that the Board of Directors of the Company may take into account.

 

Given these uncertainties, you should not place undue reliance on these forward-looking statements. Forward-looking statements represent the Company’s estimates and assumptions only as of the filing date of this Report. The Company expressly disclaim any duty to provide updates to forward-looking statements, and the estimates and assumptions associated with them, after the filing date of this Report, in order to reflect changes in circumstances or expectations, or the occurrence of unanticipated events, except to the extent required by applicable securities laws. All of the forward-looking statements are qualified in their entirety by reference to the factors discussed above and under “Risk Factors” set forth in Part I Item 1A of the 10-K, as well as the risks and uncertainties discussed elsewhere in this Report. The Company qualifies all of its forward-looking statements by these cautionary statements. The Company cautions you that these risks are not exhaustive. The Company operates in a continually changing business environment and new risks emerge from time to time.

 

 15 

 

 

OVERVIEW

 

Revenue for the third quarter of 2020 was $5.2 million compared to $9.9 million in 2019, a decrease of 47%. The Company reported a net loss of $1.1 million, or $0.20 per diluted share for the three months ended September 30, 2020 versus net income of $0.7 million, or $0.12 per diluted share for the same period in 2019. Revenue and earnings decrease for the quarter were attributed to a reduction of international and domestic sales volume, primarily as a result of the coronavirus pandemic (“COVID-19”). Further contributing to the net loss were higher personnel costs, as the Company maintained personnel through July 2020 to comply with anticipated PPP loan forgiveness. The Company has applied for loan forgiveness and expects to receive such forgiveness in the fourth quarter of 2020 or the first quarter of 2021. The Company’s revenues for the quarter were 56% above the second quarter in 2020. The Company’s net loss for the quarter was $0.9 million less than the net loss incurred in the second quarter of 2020, attributable to both the higher revenue and also cost reductions. Revenue for the nine months ended September 30, 2020 and 2019 was $16.0 million and $29.0 million, respectively, a decrease of 45%. The Company had a net loss for the nine months ended September 30, 2020 of $3.3 million versus net income for the nine months ended September 30, 2019 of $2.1 million. The Company declared $0.18 per share of cash dividends to its shareholders in the nine months ended September 30, 2020. It is important to note that this dividend was declared in February 2020, following the release of year-end earnings, with no dividends declared thereafter. This compared to dividends declared of $0.54 per share for the comparable nine-month period in 2019.

 

RESULTS OF OPERATIONS

 

Revenue decreased 47% for the three months ended September 30, 2020 compared to the same period in 2019, primarily due to a 62% decrease in volume resulting from COVID-19, both domestically and internationally. For the same period, domestic revenues decreased $2.1 million (30%) and international revenues decreased $2.6 million (93%). For the nine months ended September 2020, revenue decreased 45%, primarily due to a 56% decrease in volume. For the same period, domestic revenues decreased $6.5 million (31%) and international revenues decreased $6.4 million (80%). The Company’s domestic revenues were impacted by the shut-down of the economy due to COVID-19, with some lesser impact in safety sensitive industries. The international revenue decline was primarily from Brazil testing volume. Due to COVID-19, the Brazilian government extended the renewal period for drivers licenses to 18 months, causing a major fall off in volume and revenues from Brazil.

 

Gross profit (loss): The Company had a gross profit of $1.1 million for the three months ended September 30, 2020, compared to $4.4 million for the same period in 2019. Direct costs decreased by $1.4 million or 26% for the three months ended September 30, 2020 compared to the same period in 2019. The gross profit margin for the three-month period ended September 30, 2020 was 22% compared to 44% for the comparable period in 2019. The margin was adversely impacted by lower sales volume as noted above. In addition, to qualify for future forgiveness of the PPP loan, the Company was required to maintain prior levels of personnel through July, which negatively impacted the margin. Gross profit for the nine months ended September 30, 2020 decreased $9.4 million to $3.6 million from the comparable period in 2019. Direct costs decreased by $3.6 million or 22% for the nine months ended September 30, 2020 when compared to the same period in 2019. The gross profit margin for the nine-month period ended September 30, 2020 was 23% compared to 45% for the comparable period in 2019. The margin was adversely impacted by lower sales volume and continuation of prior year levels of personnel-related expenses as noted above.

 

 16 

 

 

General and administrative (“G&A”) expenses decreased 5% or $0.1 million to $1.3 million for the three months ended September 30, 2020 compared to $1.4 million for the same period in 2019. As a percentage of revenue, G&A expenses were 26% and 14% for the three months ended September 30, 2020 and 2019, respectively. G&A expenses were $4.7 million for the nine months ended September 30, 2020 and 2019. As a percentage of revenue, G&A expenses were 29% and 16% for the nine months ended September 30, 2020 and 2019, respectively.

 

Marketing and selling expenses decreased 28% or $0.3 million to $0.9 million for the three months ended September 30, 2020 compared to $1.2 million for the same period in 2019. Total marketing and selling expenses represented 17% and 13% of revenue for the three months ended September 30, 2020 and 2019, respectively. Expenses were primarily reduced from personnel and related costs (including less travel). Marketing and selling expenses were $2.9 million and $3.5 million for the nine months ended September 30, 2020 and 2019, respectively. As a percentage of revenue, marketing and selling expenses were 18% and 12% for the nine months ended September 30, 2020 and 2019, respectively.

 

Research and development (“R&D”) expenses for the three months ended September 30, 2020 and 2019 were $0.3 million and $0.4 million, respectively. R&D expenses represented 6% and 4% of revenue for the three months ended September 30, 2020 and 2019, respectively. R&D expenses were $1.0 million and $1.2 million for the nine months ended September 30, 2020 and 2019, respectively. R&D expenses represented 6% and 4% of revenue for the nine months ended September 30, 2020 and 2019, respectively.

 

Provision for income taxes consists primarily of federal and state income taxes in the United Sates and income taxes in Brazil. We estimate income taxes in each of the jurisdictions in which we operate. During the three months ended September 30, 2020, the Company recorded a tax benefit of $0.3 million (effective tax rate of 22%) and a tax provision of $0.7 million (effective tax rate of 49%) for the comparative period in 2019. The Company has calculated its income tax benefit under the current IRS guidance provided in Notice 2020-32 disallowing a tax deduction for covered expenses funded by amounts associated with the PPP loan forgiveness. If Congress clarifies legislation allowing for the covered expenses to be deductible for income tax purposes, there will be a $0.3 million benefit on the amounts recorded through the third quarter of 2020. During the nine months ended September 30, 2020 and 2019 the Company recorded a tax benefit of $1.8 million and a tax provision of $1.6 million for the comparative period in 2019. These provisions represented an effective tax rate of 35% and 43% for the nine months ended September 30, 2020 and 2019, respectively.

 

LIQUIDITY AND CAPITAL RESOURCES

 

At September 30, 2020, the Company had approximately $1.8 million of cash and $5.5 million of working capital. This includes $1.8 million of income tax receivables which the Company expects to receive by the end of the second quarter of 2021. The Company's operating activities used $5.2 million of cash for the nine months ended September 30, 2020. Investing activities used $0.9 million of cash while financing activities provided $0.7 million of cash during the first nine months of 2020.

 

 17 

 

 

Cash used by operating activities of $5.2 million reflected net loss of $3.3 million adjusted for depreciation and amortization of $2.0 million, ROU asset amortization of $0.7 million, deferred income taxes of $0.6 million and stock-based compensation of $0.4 million. This was also affected by an increase in current assets of $1.5 million and a decrease in accounts payable, operating lease liabilities and accrued expenses of $3.1 million.

 

Cash used in investing activities of $0.9 million consisted primarily of costs related to leasehold improvements. We anticipate spending less than $0.3 million in additional capital purchases for the remainder of 2020.

 

Cash provided by financing activities of $0.7 million primarily included proceeds from the PPP loan of $2.2 million, partially offset by cash dividends paid to shareholders of $1.0 million and payments on equipment financing of $0.5 million.

 

Contractual obligations and other commercial commitments as of September 30, 2020 include operating lease commitments and outstanding debt, described in Notes 7 and 8, respectively of the Notes to Condensed Consolidated Financial Statements.

 

At September 30, 2020, the Company's principal sources of liquidity included $5.5 million of working capital, including $1.8 million of cash. The Company expects to receive income tax refunds of $0.4 million in the fourth quarter of 2020 and at least $1.3 million in the first half of 2021. There was $7.0 million of working capital as of December 31, 2019. On May 4, 2020, the Company received SBA loan proceeds of approximately $2.2 million through the CARES act. While management currently believes that its existing funds and recently received loan proceeds should be adequate to fund operations for the next 12 months, economic conditions related to COVID-19 are expected to continue to adversely affect the Company’s operating results and cash flows. As a result, the Company has temporarily suspended its quarterly dividend until the economic situation stabilizes.

 

Item 4. Controls and Procedures

 

As of the end of the period covered by this report (the “evaluation date”) the Company’s management under the supervision and with the participation of the Company’s Chief Executive Officer and Vice President of Finance, performed an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act. Based upon that evaluation, the Chief Executive Officer and Vice President - Finance concluded as of the evaluation date, that the Company’s disclosure controls and procedures were effective for ensuring that information required to be disclosed by the Company in the reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that its disclosure controls and procedures were also effective to ensure that information required to be disclosed in the reports that it files or submits under the Exchange Act is accumulated and communicated to management, including the Company’s principal executive and principal financial officers, to allow timely decisions regarding required disclosure.

 

 18 

 

 

There has been no significant change in the Company’s internal control over financial reporting during the most recent fiscal quarter that has materially affected or is reasonably likely to materially affect the Company’s internal control over financial reporting.

 

PART II OTHER INFORMATION

 

Item 1A. Risk Factors

 

Risks associated with the Coronavirus (“COVID-19”).

 

The COVID-19 pandemic is expected to continue to materially affect the Company’s operating results during at least the next fiscal quarter and likely longer. In particular, the closing of drivers license bureaus in Brazil in response to COVID-19, along with other risk factors related to our operations in Brazil noted below, are expected to continue to have a material adverse impact on expected testing volume in Brazil for at least the next year. In addition, COVID-19’s effect on the world economy has caused significant increases in unemployment which has historically had a negative impact on our testing volume. COVID-19’s negative impact on the Company’s domestic and foreign-based revenue and operating results in the fiscal first quarter is anticipated to continue into the third quarter, and potentially beyond. However, this risk was mitigated in part by the Company’s recent receipt of proceeds from the CARES Act loan noted above.

 

While the primary COVID-19 related risk to the business is from reduced sales volume, there is also a risk from a disrupted supply chain or personnel availability. The Company has obtained additional supplies to reduce the impact of a disrupted supply chain, and has taken other protective measures to lessen the impact of COVID-19 on our own operations, including the use of personal protective equipment, enhanced cleaning and social distancing at our laboratory, however, there can be no assurance that our own operations will not be adversely impacted by COVID-19.

 

Risks associated with CARES Act PPP loan (“loan”)

 

Under the CARES Act, loan forgiveness is available for the sum of documented payroll costs, covered rent payments and covered utilities during the twenty four-week period beginning on the date of loan approval. We will be required to repay any portion of the outstanding principal that is not forgiven, along with accrued interest. While we believe we satisfied all eligibility criteria for the loan, and that our receipt of the loan is consistent with the broad objectives of the CARES Act, it is possible that the SBA or another federal agency will determine that we were ineligible to receive the loan, in which event we would be required to repay the loan. In addition, if these events were to transpire, they could have a material adverse effect on our business, results of operations and financial condition.

 

We are subject to numerous political, legal, operational, business and other risks as a result of our international operations which could impact our business in many ways.

 

 19 

 

 

Although we currently conduct most of our business in the United States, over a period of several years until 2020, a significant portion of our business had been derived from Brazil. As we have previously disclosed, our international operations increased our exposure to the inherent risks of doing business in international markets, including, without limitation, changes in the local economic environment and local laws and regulations, the Company’s reliance upon one distributor in Brazil and potential competition from third parties doing business in Brazil. Also as previously noted, the Company’s distribution agreement with its Brazilian distributor may be terminated for any reason by either the Company or its distributor following 90 days’ written notice and is non-exclusive to the Company.

 

Except as noted above, there have been no material changes in our risk factors from those disclosed in the 10-K.

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

 

There were no purchases of treasury stock in the first nine months of 2020.

 

Item 6. Exhibits

 

31.1 Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2 Certification of Principal Accounting Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1 Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2 Certification of 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.INS XBRL Instance Document
101.SCH XBRL Taxonomy Extension Schema
101.CAL XBRL Taxonomy Extension Calculation Linkbase
101.DEF

XBRL Taxonomy Extension Definition Linkbase

101.LAB XBRL Taxonomy Extension Label Linkbase
101.PRE XBRL Taxonomy Extension Presentation Linkbase

 

 

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.

 

  Psychemedics Corporation
      
Date: November 10, 2020 By:/s/ Raymond C. Kubacki
  Raymond C. Kubacki
  Chairman and Chief Executive Officer
  (principal executive officer)
      
Date: November 10, 2020 By:/s/ Neil L. Lerner
  Neil L. Lerner
  Vice President - Finance
  (principal accounting officer)

 

 

 

20

 

EX-31.1 2 exh_311.htm EXHIBIT 31.1

Exhibit 31.1

 

CERTIFICATION PURSUANT TO

SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

 

I, Raymond C. Kubacki, certify that:

 

1.I have reviewed this quarterly report on Form 10-Q of Psychemedics Corporation (“the registrant”);

 

2.Based on my knowledge, this quarterly 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 quarterly report;

 

3.Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

 

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined by Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;

 

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:

 

a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: November 10, 2020 By:/s/ Raymond C. Kubacki
  Raymond C. Kubacki
  Chairman and Chief Executive Officer
  (principal executive officer)

 

 

 

 

 

 

EX-31.2 3 exh_312.htm EXHIBIT 31.2

Exhibit 31.2

 

CERTIFICATION PURSUANT TO

SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

 

I, Neil Lerner, certify that:

 

1.I have reviewed this quarterly report on Form 10-Q of Psychemedics Corporation (“the registrant”);

 

2.Based on my knowledge, this quarterly 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 quarterly report;

 

3.Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

 

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined by Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;

 

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:

 

a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: November 10, 2020 By:/s/ Neil Lerner
  Neil Lerner
  Vice President - Finance
  (principal accounting officer)

 

 

 

 

 

 

EX-32.1 4 exh_321.htm EXHIBIT 32.1

Exhibit 32.1

 

CERTIFICATION PURSUANT TO

U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

I, Raymond C. Kubacki, Chairman and Chief Executive Officer of Psychemedics Corporation (the “Company”), certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, as the principal executive officer of the Company, that:

 

(1)The Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2020, as filed with the Securities and Exchange Commission on November 10, 2020 (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: November 10, 2020 By:/s/ Raymond C. Kubacki
  Raymond C. Kubacki
  Chairman and Chief Executive Officer
  (principal executive officer)

 

 

 

 

 

 

 

 

 

EX-32.2 5 exh_322.htm EXHIBIT 32.2

Exhibit 32.2

 

CERTIFICATION PURSUANT TO

U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

I, Neil Lerner, Vice President - Finance of Psychemedics Corporation (the “Company”), certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, as the principal accounting officer of the Company, that:

 

(1)The Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2020, as filed with the Securities and Exchange Commission on November 10, 2020 (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: November 10, 2020 By:/s/ Neil Lerner
  Neil Lerner
  Vice President - Finance
  (principal accounting officer)

 

 

 

 

 

 

 

 

 

EX-101.INS 6 pmd-20200930.xml XBRL INSTANCE FILE false --12-31 Q3 2020 2020-09-30 10-Q 0000806517 5526493 Yes false Non-accelerated Filer Yes PSYCHEMEDICS CORP false true Common stock. $0.005 par value pmd <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">2.</div> COVID-<div style="display: inline; font-style: italic; font: inherit;">19</div> Pandemic</div></div> <div style=" font-size: 10pt; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-indent: 0.25in; margin: 0pt 0">The outbreak of coronavirus (&#x201c;COVID-<div style="display: inline; font-style: italic; font: inherit;">19&#x201d;</div>) which was declared by the World Health Organization to be a pandemic, has, and is expected to continue to impact worldwide economic activity. While our domestic business has been deemed an essential business and we continue to provide services to our customers, COVID-<div style="display: inline; font-style: italic; font: inherit;">19</div> has had a significant impact on our entire operations. Additionally, COVID-<div style="display: inline; font-style: italic; font: inherit;">19's</div> effect on the overall economy has had an adverse impact on hiring, which is having a negative impact on our testing volume. Due to COVID-<div style="display: inline; font-style: italic; font: inherit;">19,</div> the Brazilian government closed all driver license bureaus and extended the renewal period for all drivers licenses, which has, and will continue to have a material adverse impact on expected testing volume in Brazil for the next year.</div> <div style=" margin: 0pt 0; font-size: 10pt; text-indent: 0.25in">&nbsp;</div> <div style=" font-size: 10pt; margin: 0pt 0"></div> <div style=" font-size: 10pt; text-indent: 0.25in; margin: 0pt 0">The Coronavirus Aid, Relieve and Economic Security Act (&#x201c;CARES&#x201d;) Act, enacted on <div style="display: inline; font-style: italic; font: inherit;"> March 27, 2020, </div>was an emergency economic stimulus package that included spending provisions and tax cuts to strengthen the United States economy and to fund a nationwide effort to curtail the effect of COVID-<div style="display: inline; font-style: italic; font: inherit;">19.</div> The principal impact of the CARES Act was the adoption of the Paycheck Protection Program described below. The CARES Act also provided sweeping tax changes in response to the COVID-<div style="display: inline; font-style: italic; font: inherit;">19</div> pandemic, including amendments to certain provisions of the previously enacted Tax Cuts and Jobs Act (&#x201c;TCJA&#x201d;). The Company recognized a provision of <div style="display: inline; font-style: italic; font: inherit;">$0.1</div> million and a benefit of <div style="display: inline; font-style: italic; font: inherit;">$1.3</div> million for the <div style="display: inline; font-style: italic; font: inherit;">three</div> and <div style="display: inline; font-style: italic; font: inherit;">nine</div> months ended <div style="display: inline; font-style: italic; font: inherit;"> September 30, 2020, </div>respectively, as a component of income tax expense from continuing operations related to the tax provisions in the CARES Act. Based on the Company's initial assessments, the Company anticipates that the CARES Act will allow the Company to defer the employer portion of its FICA taxes to <div style="display: inline; font-style: italic; font: inherit;">2021</div> and <div style="display: inline; font-style: italic; font: inherit;">2022</div> and allow the Company to fully carryback the anticipated <div style="display: inline; font-style: italic; font: inherit;">2020</div> net operating loss, if any, for a refund of taxes previously paid. The Company continues to review the tax-related provisions of the CARES Act and its potential impact on the Company.</div> <div style=" font-size: 10pt; text-align: justify; text-indent: 0.25in; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Paycheck Protection Program Loan</div></div></div> <div style=" font-size: 10pt; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-indent: 0.25in; margin: 0pt 0">On <div style="display: inline; font-style: italic; font: inherit;"> May 1, 2020, </div>the Company entered into a term loan with Bank of America N.A. under the Paycheck Protection Program (&#x201c;PPP&#x201d;) administered by the United States Small Business Administration (&#x201c;SBA&#x201d;) under the CARES Act. The principal amount of the loan was <div style="display: inline; font-style: italic; font: inherit;">$2,181,157,</div> which is evidenced by a promissory note with a maturity date of <div style="display: inline; font-style: italic; font: inherit;"> May 4, 2022.&nbsp;</div>The note bears interest on the unpaid balance at the rate of <div style="display: inline; font-style: italic; font: inherit;">one</div> percent (<div style="display: inline; font-style: italic; font: inherit;">1%</div>) per annum. The note contains a deferral period of <div style="display: inline; font-style: italic; font: inherit;">six</div> months, for which <div style="display: inline; font-style: italic; font: inherit;">no</div> interest or principal payments are due. The Company is in the process of applying for loan forgiveness with the SBA and expects a final approval by the end of fiscal <div style="display: inline; font-style: italic; font: inherit;">2020</div> or in the <div style="display: inline; font-style: italic; font: inherit;">first</div> quarter of <div style="display: inline; font-style: italic; font: inherit;">2021.</div></div> <div style=" font-size: 10pt; text-align: justify; text-indent: 0.25in; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Accounts Receivable</div></div></div> <div style=" font-size: 10pt; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-indent: 0.25in; margin: 0pt 0">We believe our allowance for credit losses related to our accounts receivable remained adequate as of <div style="display: inline; font-style: italic; font: inherit;"> September 30, 2020, </div>due to the essential nature of our customers business, as well as the diversity of our large customer base. While we anticipate there could be an increase in the aging of our accounts receivable, we do <div style="display: inline; font-style: italic; font: inherit;">not</div> anticipate a significant increase in default risk.</div> <div style=" font-size: 10pt; text-indent: 0.25in; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">Risk and Uncertainties</div></div></div> <div style=" font-size: 10pt; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-indent: 0.25in; margin: 0pt 0">The duration and severity of COVID-<div style="display: inline; font-style: italic; font: inherit;">19</div>-related potential disruptions involve risks and uncertainties and it is <div style="display: inline; font-style: italic; font: inherit;">not</div> possible at this time to estimate the full impact on our business and could adversely affect our estimates, results of operations and financial condition.</div> <div style=" font-size: 10pt; text-indent: 0.25in; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-indent: 0.25in; margin: 0pt 0">To help mitigate potential effects of the pandemic on the Company, there are several safety measures that have been implemented to ensure the safety of our employees as well as maintaining our staff and business continuity. The Company is providing personal protection equipment and implemented policies at our laboratory including temperature checks and physical distancing.</div></div> 100000 1300000 -2219000 -220000 -721000 458000 1 1 2 507000 312000 713000 10000 1000 20.24 12.84 11.87 311000 156000 20.24 416000 617000 3890000 3780000 1357000 3577000 16257000 16197000 -1634000 -1624000 32690000 32249000 8000 8000 33000 33000 163000 163000 160000 160000 126000 126000 158000 158000 161000 161000 190000 190000 102000 151000 353000 372000 24000 39000 96000 137000 126000 190000 449000 509000 40000 45000 594000 594000 23980000 27531000 8831000 12851000 1809000 7283000 7283000 4069000 1809000 6492000 -5474000 2423000 <div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.25in"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">6.</div></div></td> <td><div style="display: inline; font-weight: bold;">Commitments and Contingencies</div></td> </tr> </table> <div style=" font-size: 10pt; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-indent: 0.25in; margin: 0pt 0">The Company is subject to legal proceedings and claims which arise in the ordinary course of its business. While the ultimate outcome of individual legal claims is inherently unpredictable, we believe that the final resolution of any pending actions will <div style="display: inline; font-style: italic; font: inherit;">not</div> have a material adverse effect on our results of operations, financial position, liquidity or capital resources.</div></div> 820000 0.18 0.18 0.18 0.18 0.18 0.54 0.005 0.005 50000000 50000000 6195000 6185000 6195000 6185000 31000 31000 -1107000 347000 -3326000 1775000 <div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.25in"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">11.</div></div></td> <td><div style="display: inline; font-weight: bold;">Significant Customers</div></td> </tr> </table> <div style=" font-size: 10pt; text-align: justify; text-indent: 0.25in; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.25in">The Company had <div style="display: inline; font-style: italic; font: inherit;">no</div> customers that represented over <div style="display: inline; font-style: italic; font: inherit;">10%</div> of revenue during the <div style="display: inline; font-style: italic; font: inherit;">nine</div> months ended <div style="display: inline; font-style: italic; font: inherit;"> September 30, 2020. </div>One customer represented <div style="display: inline; font-style: italic; font: inherit;">26%</div> of revenue for the <div style="display: inline; font-style: italic; font: inherit;">nine</div> months ended <div style="display: inline; font-style: italic; font: inherit;"> September 30, 2019. </div>The Company had <div style="display: inline; font-style: italic; font: inherit;">one</div> customer that represented <div style="display: inline; font-style: italic; font: inherit;">24%</div> of the total accounts receivable balance as of <div style="display: inline; font-style: italic; font: inherit;"> September 30, 2020 </div>and <div style="display: inline; font-style: italic; font: inherit;">two</div> customers that represented <div style="display: inline; font-style: italic; font: inherit;">13%</div> and <div style="display: inline; font-style: italic; font: inherit;">11%,</div> respectively, of the total accounts receivable balance as of <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2019.</div></div></div> 0.26 0.24 0.13 0.11 4041000 5470000 12416000 16004000 <div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.25in"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">8.</div></div></td> <td><div style="display: inline; font-weight: bold;">Debt and Other Financing Arrangements</div></td> </tr> </table> <div style=" font-size: 10pt; text-align: justify; text-indent: 0.25in; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-indent: 0.25in; margin: 0pt 0">On <div style="display: inline; font-style: italic; font: inherit;"> March 20, 2014, </div>the Company entered into an equipment financing arrangement (&#x201c;Loan Agreement&#x201d;) with Banc of America Leasing &amp; Capital, which it amended on <div style="display: inline; font-style: italic; font: inherit;"> August 8, 2014, </div><div style="display: inline; font-style: italic; font: inherit;"> September 15, 2015, </div><div style="display: inline; font-style: italic; font: inherit;"> October 30, 2017, </div>and <div style="display: inline; font-style: italic; font: inherit;"> December 2, 2019. </div>The terms of the arrangement are detailed in the <div style="display: inline; font-style: italic; font: inherit;">10</div>-K.</div> <div style=" margin: 0pt 0; font-size: 10pt; text-indent: 0.25in">&nbsp;</div> <div style=" margin: 0pt 0; font-size: 10pt; text-indent: 0.25in">The weighted average interest rate on outstanding debt under the Loan Agreement was <div style="display: inline; font-style: italic; font: inherit;">3.3%</div> and <div style="display: inline; font-style: italic; font: inherit;">3.4%</div> for the <div style="display: inline; font-style: italic; font: inherit;">three</div> and <div style="display: inline; font-style: italic; font: inherit;">nine</div> months ended <div style="display: inline; font-style: italic; font: inherit;"> September 30, 2020. </div>The interest expense was <div style="display: inline; font-style: italic; font: inherit;">$16</div> thousand and <div style="display: inline; font-style: italic; font: inherit;">$60</div> thousand for the <div style="display: inline; font-style: italic; font: inherit;">three</div> and <div style="display: inline; font-style: italic; font: inherit;">nine</div> months ended <div style="display: inline; font-style: italic; font: inherit;"> September 30, 2020, </div>respectively. As of <div style="display: inline; font-style: italic; font: inherit;"> September 30, 2020, </div>the weighted average interest rate was <div style="display: inline; font-style: italic; font: inherit;">2.6%</div> and there was <div style="display: inline; font-style: italic; font: inherit;">$2.1</div> million of outstanding debt related under the loan agreement. As of <div style="display: inline; font-style: italic; font: inherit;"> September 30, 2020, </div>the Company was <div style="display: inline; font-style: italic; font: inherit;">not</div> in compliance with these covenants. Subsequent to <div style="display: inline; font-style: italic; font: inherit;"> September 30, 2020, </div>the Company amended its debt arrangement to waive the non-compliance and amend certain covenants through the quarter ended <div style="display: inline; font-style: italic; font: inherit;"> June 30, 2021.</div></div> <div style=" margin: 0pt 0; font-size: 10pt; text-indent: 0.25in">&nbsp;</div> <div style=" margin: 0pt 0; font-size: 10pt; text-indent: 0.25in">The annual principal repayment requirements for debt obligations as of <div style="display: inline; font-style: italic; font: inherit;"> September 30, 2020 </div>were as follows (in thousands):</div> <div style=" font-size: 10pt; text-indent: 0.25in; margin: 0pt 0 0pt 0.25in">&nbsp;</div> <div> <table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; min-width: 700px;"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 82%; font-size: 10pt; text-align: left">2020</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 15%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">170</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">2021</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">688</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">2022</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">664</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">2023</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">294</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">2024</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">305</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Long-term debt from equipment financing</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">2,121</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Less current portion of long-term debt</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">(685</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Long-term debt from equipment financing, net of current portion</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">1,436</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">PPP Loan</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">2,181</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 2.5pt">Total long-term debt, net of current portion</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">3,617</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> </tr> </table> </div> <div style=" font-size: 10pt; text-indent: 0.25in; margin: 0pt 0 0pt 0.25in; color: Red"><div style="display: inline; font-weight: bold;"></div></div> <div style=" font-size: 10pt; text-indent: 0.25in; margin: 0pt 0 0pt 0.25in; color: Red">&nbsp;</div> <div style=" font-size: 10pt; text-indent: 0.25in; margin: 0pt 0 0pt 0.25in"><div style="display: inline; bottom:.33em; font-size: 82%; position: relative; vertical-align: baseline;"><div style="display: inline; font-style: italic; font: inherit;">1</div></div> See note <div style="display: inline; font-style: italic; font: inherit;">2.</div> for description of PPP Loan.</div></div> 0.026 10000 550000 1995000 2219000 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">13.</div>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounting Pronouncements Issued But <div style="display: inline; font-style: italic; font: inherit;">Not</div> Yet Effective</div></div> <div style=" font-size: 10pt; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.25in">In <div style="display: inline; font-style: italic; font: inherit;"> December 2019, </div>the Financial Accounting Standards Board (&#x201c;FASB&#x201d;) issued ASU <div style="display: inline; font-style: italic; font: inherit;">2019</div>-<div style="display: inline; font-style: italic; font: inherit;">12,</div> &#x201c;Income Taxes (Topic <div style="display: inline; font-style: italic; font: inherit;">740</div>): Simplifying the Accounting for Income Taxes&#x201d;, which is intended to simplify the accounting for income taxes. This ASU removes certain exceptions to the general principles in Topic <div style="display: inline; font-style: italic; font: inherit;">740</div> and clarifies and amends existing guidance to improve consistent application. The new standard will be effective beginning <div style="display: inline; font-style: italic; font: inherit;"> January 1, 2021. </div>As of <div style="display: inline; font-style: italic; font: inherit;"> September 30, 2020, </div>the Company is continuing to evaluate the potential impact this ASU <div style="display: inline; font-style: italic; font: inherit;"> may </div>have on its financial position and results of operations upon adoption.</div></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; min-; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center">Three Months Ended</td> <td style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center">Nine Months Ended</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">September 30,</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">September 30,</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2020</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2019</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2020</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2019</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 48%; font-size: 10pt">Testing</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">4,590</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">9,069</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">14,363</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">26,543</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Shipping/Collection (hair)</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">562</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">714</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">1,576</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">2,225</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 1pt">Other</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">22</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">69</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">86</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">195</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; font-size: 10pt; text-align: left; padding-bottom: 2.5pt">Total Revenue</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">5,174</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">9,852</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">16,025</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">28,963</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> </tr> </table></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.25in"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">4.</div></div></td> <td><div style="display: inline; font-weight: bold;">Stock-Based Compensation</div></td> </tr> </table> <div style=" font-size: 10pt; text-indent: -0.25in; margin: 0pt 0 0pt 0.25in"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic;">&nbsp;</div></div></div> <div style=" font-size: 10pt; text-indent: 0.25in; margin: 0pt 0">The Company's <div style="display: inline; font-style: italic; font: inherit;">2006</div> Incentive Plan (&#x201c;the Plan&#x201d;) provides for cash-based awards or the grant or issuance of stock-based awards. As of <div style="display: inline; font-style: italic; font: inherit;"> September 30, 2020, </div><div style="display: inline; font-style: italic; font: inherit;">231</div> thousand shares remained available for future grant under the Plan.</div> <div style=" font-size: 10pt; text-indent: 0.25in; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-indent: 0.25in; margin: 0pt 0">Share-based compensation is measured at the grant date based on the fair value of the award and is recognized as an expense over the requisite service period (generally the vesting period of the equity grant). The compensation cost charged against income is included in cost of revenues and operating expenses as follows (in thousands):</div> <div style=" font-size: 10pt; text-indent: 0.25in; margin: 0pt 0 0pt 0.25in">&nbsp;</div> <div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center">Three Months Ended</td> <td style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center">Nine Months Ended</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">September 30,</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">September 30,</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2020</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2019</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2020</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2019</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-decoration: underline; text-align: left">Share-based compensation related to:</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 48%; font-size: 10pt; text-align: left">Stock option grants</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">102</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">151</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">353</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">372</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Restricted Stock Unit awards</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">24</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">39</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">96</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">137</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 2.5pt">Total share-based compensation</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">126</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">190</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">449</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">509</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> </tr> </table> </div> <div style=" font-size: 10pt; text-indent: 0.25in; margin: 0pt 0 0pt 0.25in"></div> <div style=" font-size: 10pt; text-indent: 0.25in; margin: 0pt 0; color: Red">&nbsp;</div> <div style=" font-size: 10pt; text-indent: 0.25in; margin: 0pt 0">There was <div style="display: inline; font-style: italic; font: inherit;"><div style="display: inline; font-style: italic; font: inherit;">no</div></div> income tax benefit recognized in the condensed consolidated statements of income for share-based compensation arrangements for the <div style="display: inline; font-style: italic; font: inherit;">three</div>-month and <div style="display: inline; font-style: italic; font: inherit;">nine</div>-month periods ended <div style="display: inline; font-style: italic; font: inherit;"> September 30, 2020 </div>and <div style="display: inline; font-style: italic; font: inherit;">2019.</div></div> <div style=" font-size: 10pt; text-indent: 0.25in; margin: 0pt 0 0pt 0.25in">&nbsp;</div> <div style=" margin-top: 0pt; margin-bottom: 0pt; font-size: 10pt"></div> <div style=" font-size: 10pt; text-indent: -0.25in; margin: 0pt 0 0pt 58.5pt"><div style="display: inline; font-weight: bold;"></div></div> <div style=" font-size: 10pt; text-indent: 0.25in; margin: 0pt 0">A summary of the Company's stock option activity for the <div style="display: inline; font-style: italic; font: inherit;">nine</div> months ended <div style="display: inline; font-style: italic; font: inherit;"> September 30, 2020 </div>is as follows (in thousands except per share amounts):</div> <div style=" font-size: 10pt; text-indent: 0.25in; margin: 0pt 0 0pt 0.25in">&nbsp;</div> <div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center">Weighted Average</td> <td style="font-size: 10pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center">Weighted Average</td> <td style="font-size: 10pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center">Aggregate</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center">Number of</td> <td style="font-size: 10pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center">Exercise Price</td> <td style="font-size: 10pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center">Remaining</td> <td style="font-size: 10pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center">Intrinsic</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Shares</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Per Share</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Contractual Life (years)</td> <td style="font-size: 10pt; font-weight: 400; font-style: normal; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: 400; font-style: normal; text-align: center; border-bottom: Black 1pt solid">Value<div style="display: inline; font-size: 10pt; font-style: normal; font-weight: 400"><div style="display: inline; bottom:.33em; font-size: 82%; position: relative; vertical-align: baseline;">(1)</div></div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 48%; font-size: 10pt">Outstanding, December 31, 2019</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">584</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">14.94</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">7.9</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; font-size: 10pt; text-align: left">Granted</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; font-size: 10pt; text-align: left">Exercised</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; font-size: 10pt; text-align: left; padding-bottom: 1pt">Forfeited</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">(3</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">$</td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">4.37</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 2.5pt">Outstanding, September 30, 2020</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">581</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">14.93</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">7.1</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 2.5pt">Exercisable, September 30, 2020</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">396</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">15.49</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">6.6</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> </tr> </table> </div> <div style=" font-size: 10pt; margin: 0pt 0 0pt 27pt; color: Red"><div style="display: inline; font-weight: bold;">&nbsp;</div></div> <div style=" margin: 0pt 0 0pt 27pt; font-size: 10pt; color: Red"><div style="display: inline; font-weight: bold;"></div></div> <table cellpadding="0" cellspacing="0" style="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;"> <tr style="vertical-align: top"> <td style="width: 29.55pt"></td> <td style="width: 19.95pt"><div style="display: inline; color: #231F20">(<div style="display: inline; font-style: italic; font: inherit;">1</div>)</div></td> <td style="text-align: justify; padding-right: 5.35pt">Stock options had <div style="display: inline; font-style: italic; font: inherit;"><div style="display: inline; font-style: italic; font: inherit;"><div style="display: inline; font-style: italic; font: inherit;"><div style="display: inline; font-style: italic; font: inherit;">no</div></div></div></div> aggregate intrinsic value as of <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2019 </div>and <div style="display: inline; font-style: italic; font: inherit;"> September 30, 2020. </div>Intrinsic value is calculated based on the amount by which the closing market value of the Company's stock exceeded the exercise price of the underlying options, multiplied by the number of shares.</td> </tr> </table> <div style=" font-size: 10pt; margin: 0pt 0 0pt 0.25in">&nbsp;</div> <div style=" font-size: 10pt; text-indent: 0.25in; margin: 0pt 0">A summary of the Company's stock unit award (&#x201c;SUA&#x201d;) activity for the <div style="display: inline; font-style: italic; font: inherit;">nine</div> months ended <div style="display: inline; font-style: italic; font: inherit;"> September 30, 2020 </div>is as follows (in thousands except per share amounts):</div> <div style=" font-size: 10pt; margin: 0pt 0 0pt 0.25in">&nbsp;</div> <div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Number of Shares</td> <td style="font-size: 10pt; font-weight: 400; font-style: normal; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: 400; font-style: normal; text-align: center; border-bottom: Black 1pt solid"><div style=" margin-top: 0; margin-bottom: 0">Weighted Average</div> <div style=" margin-top: 0; margin-bottom: 0">Price per Share <div style="display: inline; font-size: 10pt; font-style: normal; font-weight: 400"><div style="display: inline; bottom:.33em; font-size: 82%; position: relative; vertical-align: baseline;">(2)</div></div></div></td> <td style="font-size: 10pt; font-weight: 400; font-style: normal; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: 400; font-style: normal; text-align: center; border-bottom: Black 1pt solid"><div style=" margin-top: 0; margin-bottom: 0">Weighted Average</div> <div style=" margin-top: 0; margin-bottom: 0">Fair Value <div style="display: inline; font-size: 10pt; font-style: normal; font-weight: 400"><div style="display: inline; bottom:.33em; font-size: 82%; position: relative; vertical-align: baseline;">(2)</div></div></div></td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 58%; font-size: 10pt">Outstanding &amp; Unvested, December 31, 2019</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 11%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">24</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 11%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">12.84</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 11%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">311</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; padding-left: 10pt">Granted</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">Converted to common stock</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">(10</div></td> <td style="font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">$</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">20.24</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; padding-left: 10pt">Cancelled</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">(1</div></td> <td style="font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">$</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">20.24</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 1pt; padding-left: 10pt">Forfeited</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; padding-bottom: 2.5pt">Outstanding &amp; Unvested, September 30, 2020</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">13</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">11.87</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">156</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> </tr> </table> </div> <div style=" font-size: 10pt; text-align: justify; text-indent: -0.25in; margin: 0pt 0 0pt 49.5pt; color: Red"><div style="display: inline; font-weight: bold;">&nbsp;</div></div> <div style=" margin: 0pt 0 0pt 49.5pt; font-size: 10pt; text-align: justify; text-indent: -0.25in; color: Red"><div style="display: inline; font-weight: bold;"></div></div> <table cellpadding="0" cellspacing="0" style="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;"> <tr style="vertical-align: top"> <td style="width: 34.05pt"></td> <td style="width: 19.95pt"><div style="display: inline; color: #231F20">(<div style="display: inline; font-style: italic; font: inherit;">2</div>)</div></td> <td style="text-align: justify; padding-right: 5.35pt">Weighted average price per share is the weighted grant price based on the closing market price of each of the stock grants related to each grant of stock unit awards. The weighted average fair value is the weighted average share price times the number of shares.</td> </tr> </table> <div style=" font-size: 10pt; text-align: justify; margin: 0pt 5.35pt 0pt 34.05pt">&nbsp;</div> <div style=" font-size: 10pt; text-indent: 0.25in; margin: 0pt 0">As of <div style="display: inline; font-style: italic; font: inherit;"> September 30, 2020, </div><div style="display: inline; font-style: italic; font: inherit;">820</div> thousand shares of common stock were reserved for issuance under the Plan. As of <div style="display: inline; font-style: italic; font: inherit;"> September 30, 2020, </div>the unamortized fair value of awards relating to outstanding SUAs and options was <div style="display: inline; font-style: italic; font: inherit;">$674</div> thousand, which is expected to be amortized over a weighted average period of <div style="display: inline; font-style: italic; font: inherit;">2.2</div> years.</div></div> 993000 993000 991000 991000 994000 994000 993000 993000 -0.20 0.12 -0.60 0.38 -0.20 0.12 -0.60 0.37 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">5.</div>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic and Diluted Net Income (Loss) Per Share</div></div> <div style=" font-size: 10pt; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-indent: 0.25in; margin: 0pt 0">Basic net income (loss) per share is computed by dividing net income (or loss) by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing net income (or loss) by the weighted average number of common and dilutive common equivalent shares outstanding during the period when the effect is dilutive. The number of dilutive common equivalent shares outstanding during the period was determined in accordance with the treasury-stock method. Common equivalent shares consisted of common stock issuable upon the exercise of outstanding options and common stock issuable upon the vesting of outstanding, unvested SUAs. Basic and diluted weighted average common shares outstanding for the <div style="display: inline; font-style: italic; font: inherit;">three</div> and <div style="display: inline; font-style: italic; font: inherit;">nine</div> months ended <div style="display: inline; font-style: italic; font: inherit;"> September 30, 2020 </div>and <div style="display: inline; font-style: italic; font: inherit;">2019</div> were as follows (in thousands):</div> <div style=" margin: 0pt 0; font-size: 10pt; text-indent: 0.25in">&nbsp;</div> <div> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center">Three Months Ended</td> <td style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center">Nine Months Ended</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">September 30,</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">September 30,</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2020</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2019</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2020</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2019</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 48%; font-size: 10pt">Weighted average common shares outstanding, basic</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">5,526</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">5,517</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">5,522</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">5,513</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Dilutive common equivalent shares</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">16</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 2.5pt">Weighted average common shares outstanding, diluted</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">5,526</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">5,517</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">5,522</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">5,529</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> </tr> </table> </div> <div style=" margin: 0pt 0; font-size: 10pt; text-indent: 0.25in"></div> <div style=" font-size: 10pt; text-align: justify; text-indent: 0.25in; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-indent: 0.25in; margin: 0pt 0">The computation of diluted earnings (loss) per share for the <div style="display: inline; font-style: italic; font: inherit;">three</div> and <div style="display: inline; font-style: italic; font: inherit;">nine</div> month period ended <div style="display: inline; font-style: italic; font: inherit;"> September 30, 2020 </div>and <div style="display: inline; font-style: italic; font: inherit;">2019</div> excludes the effect of the potential exercise of stock awards, including stock options, when the effect is anti-dilutive. For the <div style="display: inline; font-style: italic; font: inherit;">three</div> and <div style="display: inline; font-style: italic; font: inherit;">nine</div> month periods ended <div style="display: inline; font-style: italic; font: inherit;"> September 30, 2020, </div>the number of antidilutive stock awards excluded from diluted earnings (loss) per share was <div style="display: inline; font-style: italic; font: inherit;"><div style="display: inline; font-style: italic; font: inherit;">594</div></div> thousand.</div></div> -10000 -257000 674000 P2Y73D 0 0 0 0 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">3.</div>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fair Value Measurements</div></div> <div style=" font-size: 10pt; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-indent: 0.25in; margin: 0pt 0">The Company has financial instruments, such as accounts receivable, accounts payable, and accrued expenses, which are stated at carrying amounts that approximate fair value because of the short maturity of those instruments. The carrying amount of the Company's long-term debt approximates fair value as the interest rate on the debt approximates the estimated borrowing rate currently available to the Company.</div></div> -94000 1341000 1417000 4727000 4687000 1133000 4382000 3609000 12959000 -1426000 1340000 -5086000 3658000 -319000 663000 -1770000 1586000 236000 1958000 1833000 -204000 -335000 110000 342000 560000 138000 1344000 439000 16000 60000 60000 47000 <div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; min-; min-width: 700px;"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 69%; font-size: 10pt; text-align: right">2020</td> <td style="width: 2%; font-size: 10pt">&nbsp;</td> <td style="width: 2%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 25%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">238</div></td> <td style="width: 2%; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: right">2021</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">1,041</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: right">2022</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">1,028</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: right">2023</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">1,096</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: right">2024</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">1,035</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: right">2025</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">593</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: right; padding-bottom: 1pt">2026</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">458</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: right; padding-bottom: 1pt">Total Lease Payments</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">5,489</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: right; padding-bottom: 1pt">Less Interest:</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">(526</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: right; padding-bottom: 2.5pt">Present value of lease liabilities</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">4,963</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: right">Current operating lease liabilities</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">$</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">884</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: right; padding-bottom: 1pt">Long-term operating lease liabilities</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">4,079</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: right; padding-bottom: 2.5pt">Total</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">4,963</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> </tr> </table></div> 5489000 1041000 593000 1035000 1096000 1028000 238000 526000 <div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;"> <tr style="vertical-align: top"> <td style="width: 0"></td> <td style="width: 0.25in"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">7.</div></div></td> <td><div style="display: inline; font-weight: bold;">Operating Leases</div></td> </tr> </table> <div style=" font-size: 10pt; text-indent: -0.25in; margin: 0pt 0 0pt 0.25in"><div style="display: inline; font-weight: bold;">&nbsp;</div></div> <div style=" font-size: 10pt; text-indent: 0.25in; margin: 0pt 0">The Company has <div style="display: inline; font-style: italic; font: inherit;">five</div> operating leases for office and laboratory space used to conduct business. The exercise of lease renewal options is at our discretion. There is <div style="display: inline; font-style: italic; font: inherit;">one</div> lease which contains renewal options to extend the lease terms included in our Right-Of-Use (&#x201c;ROU&#x201d;) assets and lease liabilities as they are reasonably certain of exercise. The Company regularly evaluates the renewal options and when they are reasonably certain of exercise. As most of the Company's leases do <div style="display: inline; font-style: italic; font: inherit;">not</div> provide an implicit rate, the Company uses the incremental borrowing rate based on the information available at the lease commencement date in determining the net present value (NPV) of the lease payments.</div> <div style=" font-size: 10pt; text-indent: 0.25in; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-indent: 0.25in; margin: 0pt 0">As of <div style="display: inline; font-style: italic; font: inherit;"> September 30, 2020, </div>the Company recognized a Right-Of-Use (&#x201c;ROU&#x201d;) asset of <div style="display: inline; font-style: italic; font: inherit;">$4.5</div> million and an operating lease liability of <div style="display: inline; font-style: italic; font: inherit;">$5.0</div> million based on the present value of the minimum rental payments as a result of adoption of ASC Topic <div style="display: inline; font-style: italic; font: inherit;">842.</div> The weighted average discount rate used for leases as of <div style="display: inline; font-style: italic; font: inherit;"> September 30, 2020 </div>is <div style="display: inline; font-style: italic; font: inherit;">3.9%.</div> The weighted average lease term as of <div style="display: inline; font-style: italic; font: inherit;"> September 30, 2020 </div>is <div style="display: inline; font-style: italic; font: inherit;">5.2</div> years. The operating lease expense for the <div style="display: inline; font-style: italic; font: inherit;">three</div> and <div style="display: inline; font-style: italic; font: inherit;">nine</div> months ended <div style="display: inline; font-style: italic; font: inherit;"> September 30, 2020 </div>was <div style="display: inline; font-style: italic; font: inherit;">$288</div> thousand and <div style="display: inline; font-style: italic; font: inherit;">$853</div> thousand, respectively.</div> <div style=" font-size: 10pt; text-indent: 0.25in; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-indent: 0.25in; margin: 0pt 0">Maturities and balance sheet presentation of the Company's lease liabilities for all operating leases as of <div style="display: inline; font-style: italic; font: inherit;"> September 30, 2020 </div>is as follows (in thousands):</div> <div style=" font-size: 10pt; text-align: justify; text-indent: 0.25in; margin: 0pt 0">&nbsp;</div> <div> <table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; min-width: 700px;"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 69%; font-size: 10pt; text-align: right">2020</td> <td style="width: 2%; font-size: 10pt">&nbsp;</td> <td style="width: 2%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 25%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">238</div></td> <td style="width: 2%; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: right">2021</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">1,041</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: right">2022</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">1,028</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: right">2023</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">1,096</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: right">2024</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">1,035</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: right">2025</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">593</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: right; padding-bottom: 1pt">2026</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">458</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: right; padding-bottom: 1pt">Total Lease Payments</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">5,489</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: right; padding-bottom: 1pt">Less Interest:</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">(526</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: right; padding-bottom: 2.5pt">Present value of lease liabilities</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">4,963</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: right">Current operating lease liabilities</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">$</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">884</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: right; padding-bottom: 1pt">Long-term operating lease liabilities</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">4,079</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: right; padding-bottom: 2.5pt">Total</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">4,963</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> </tr> </table> </div></div> 11038000 10711000 23980000 27531000 3342000 5835000 2100000 2121000 685000 685000 678000 688000 305000 294000 664000 170000 1436000 2181000 3617000 1951000 0.033 0.034 673000 -3323000 -914000 2642000 -5223000 3361000 -159000 -159000 -2050000 -2050000 -1107000 -1107000 627000 627000 768000 768000 677000 677000 -3316000 2072000 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">12.</div>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recently Adopted Accounting Pronouncements</div></div> <div style=" font-size: 10pt; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-align: justify; text-indent: 0.25in; margin: 0pt 0">There are <div style="display: inline; font-style: italic; font: inherit;">no</div> recently adopted accounting pronouncements for the quarter.</div></div> 3000 30000 1 2542000 3048000 8566000 9355000 -1409000 1334000 -4957000 3604000 288000 853000 4963000 884000 963000 4079000 2375000 800000 841000 4508000 2875000 0.039 P5Y73D <div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; min-width: 700px;"> <tr style="vertical-align: top"> <td style="width: 0.25in"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">1.</div></div></td> <td><div style="display: inline; font-weight: bold;">Basis of Presentation</div></td> </tr> </table> <div style=" font-size: 10pt; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-indent: 0.25in; margin: 0pt 0">The interim condensed consolidated financial statements of Psychemedics Corporation (the &#x201c;Company&#x201d;) presented herein, have been prepared pursuant to the rules of the Securities and Exchange Commission (&#x201c;SEC&#x201d;) for quarterly reports on Form <div style="display: inline; font-style: italic; font: inherit;">10</div>-Q and do <div style="display: inline; font-style: italic; font: inherit;">not</div> include all the information and note disclosures required by accounting principles generally accepted in the United States of America. These statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2019, </div>included in the Company's <div style="display: inline; font-style: italic; font: inherit;">2019</div> Annual Report on Form <div style="display: inline; font-style: italic; font: inherit;">10</div>-K (<div style="display: inline; font-style: italic; font: inherit;">&#x201c;10</div>-K&#x201d;), as filed with the SEC.</div> <div style=" font-size: 10pt; text-indent: 0.25in; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-indent: 0.25in; margin: 0pt 0">The condensed consolidated balance sheet as of <div style="display: inline; font-style: italic; font: inherit;"> September 30, 2020, </div>the condensed consolidated statements of operations and comprehensive income (loss) for the <div style="display: inline; font-style: italic; font: inherit;">three</div>-month and <div style="display: inline; font-style: italic; font: inherit;">nine</div>-month periods ended <div style="display: inline; font-style: italic; font: inherit;"> September 30, 2020 </div>and <div style="display: inline; font-style: italic; font: inherit;">2019,</div> the condensed consolidated statements of shareholders' equity for the <div style="display: inline; font-style: italic; font: inherit;">nine</div>-month periods ended <div style="display: inline; font-style: italic; font: inherit;"> September 30, 2020 </div>and <div style="display: inline; font-style: italic; font: inherit;">2019</div> and the condensed consolidated statements of cash flows for the <div style="display: inline; font-style: italic; font: inherit;">nine</div>-month periods ended <div style="display: inline; font-style: italic; font: inherit;"> September 30, 2020 </div>and <div style="display: inline; font-style: italic; font: inherit;">2019</div> are unaudited but, in the opinion of management, include all adjustments necessary for a fair presentation of results for these interim periods. The condensed consolidated balance sheet as of <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2019 </div>has been derived from the Company's annual financial statements that were audited by an independent registered public accounting firm, but does <div style="display: inline; font-style: italic; font: inherit;">not</div> include all of the information and footnotes required for complete annual financial statements.</div> <div style=" font-size: 10pt; text-indent: 0.25in; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-indent: 0.25in; margin: 0pt 0">The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The results of operations for the <div style="display: inline; font-style: italic; font: inherit;">three</div> months and <div style="display: inline; font-style: italic; font: inherit;">nine</div> months ended <div style="display: inline; font-style: italic; font: inherit;"> September 30, 2020 </div><div style="display: inline; font-style: italic; font: inherit;"> may </div><div style="display: inline; font-style: italic; font: inherit;">not</div> be indicative of the results that <div style="display: inline; font-style: italic; font: inherit;"> may </div>be expected for the year ending <div style="display: inline; font-style: italic; font: inherit;"> December 31, 2020, </div>or any other period.</div> <div style=" font-size: 10pt; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; text-indent: 0.25in; margin: 0pt 0">Unless the context requires otherwise, the terms &#x201c;we&#x201d;, &#x201c;us&#x201d;, &#x201c;our&#x201d;, or &#x201c;the Company&#x201d; refer to Psychemedics Corporation and its consolidated subsidiaries.</div></div> 885000 943000 -330000 -10000 -297000 -23000 -23000 14000 14000 -1000 -1000 -48000 -48000 82000 82000 -331000 -331000 -35000 -17000 6000 -129000 54000 -10000 47000 993000 2978000 8000 33000 880000 896000 184000 225000 0.005 0.005 873000 873000 0 0 0 0 1299000 1788000 2181157 2181000 140000 3810000 9746000 10862000 305000 393000 981000 1213000 -8063000 -3754000 4590000 9069000 14363000 26543000 562000 714000 1576000 2225000 22000 69000 86000 195000 5174000 9852000 16025000 28963000 4977000 7102000 14441000 20969000 62000 2619000 1207000 7620000 135000 131000 377000 374000 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">9.</div>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revenue </div></div> <div style=" font-size: 10pt; margin: 0pt 0">&nbsp;</div> <div style=" margin: 0pt 0; font-size: 10pt; text-indent: 20pt">The table below disaggregates our external revenue by major source (in thousands).&nbsp; For additional revenue detail relating to geographic breakdown of sales, see Note <div style="display: inline; font-style: italic; font: inherit;">10</div> &#x2013; &#x201c;Business Segment Reporting&#x201d;.</div> <div style=" font-size: 10pt; margin: 0pt 0; text-indent: 0.75in">&nbsp;</div> <div> <table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center">Three Months Ended</td> <td style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center">Nine Months Ended</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">September 30,</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">September 30,</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2020</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2019</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2020</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2019</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 48%; font-size: 10pt">Testing</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">4,590</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">9,069</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">14,363</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">26,543</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Shipping/Collection (hair)</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">562</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">714</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">1,576</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">2,225</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 1pt">Other</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">22</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">69</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">86</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">195</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; font-size: 10pt; text-align: left; padding-bottom: 2.5pt">Total Revenue</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">5,174</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">9,852</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">16,025</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">28,963</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> </tr> </table> </div></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; min-; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center">Three Months Ended</td> <td style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center">Nine Months Ended</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">September 30,</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">September 30,</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2020</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2019</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2020</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2019</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Consolidated Revenue:</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; width: 48%; font-size: 10pt; text-align: left">United States</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">4,977</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">7,102</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">14,441</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">20,969</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; font-size: 10pt">Brazil</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">62</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">2,619</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">1,207</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">7,620</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; font-size: 10pt; padding-bottom: 1pt">Other</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">135</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">131</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">377</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">374</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 2.5pt">Total Revenue</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">5,174</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">9,852</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">16,025</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">28,963</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> </tr> </table></div> 2346000 4382000 <div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; min-; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center">Three Months Ended</td> <td style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center">Nine Months Ended</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">September 30,</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">September 30,</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2020</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2019</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2020</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2019</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-decoration: underline; text-align: left">Share-based compensation related to:</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 48%; font-size: 10pt; text-align: left">Stock option grants</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">102</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">151</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">353</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">372</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Restricted Stock Unit awards</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">24</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">39</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">96</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">137</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 2.5pt">Total share-based compensation</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">126</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">190</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">449</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">509</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> </tr> </table></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; min-; min-width: 700px;"> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 82%; font-size: 10pt; text-align: left">2020</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 15%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">170</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">2021</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">688</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">2022</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">664</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">2023</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">294</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">2024</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">305</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Long-term debt from equipment financing</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">2,121</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Less current portion of long-term debt</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">(685</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left">Long-term debt from equipment financing, net of current portion</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">1,436</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">PPP Loan</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">2,181</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 2.5pt">Total long-term debt, net of current portion</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">3,617</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> </tr> </table></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; min-; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center">Three Months Ended</td> <td style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center">Nine Months Ended</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">September 30,</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">September 30,</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2020</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2019</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2020</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2019</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 48%; font-size: 10pt">Weighted average common shares outstanding, basic</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">5,526</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">5,517</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">5,522</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">5,513</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; text-align: left; padding-bottom: 1pt">Dilutive common equivalent shares</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">16</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 2.5pt">Weighted average common shares outstanding, diluted</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">5,526</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">5,517</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">5,522</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">5,529</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> </tr> </table></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; min-; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Number of Shares</td> <td style="font-size: 10pt; font-weight: 400; font-style: normal; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: 400; font-style: normal; text-align: center; border-bottom: Black 1pt solid"><div style=" margin-top: 0; margin-bottom: 0">Weighted Average</div> <div style=" margin-top: 0; margin-bottom: 0">Price per Share <div style="display: inline; font-size: 10pt; font-style: normal; font-weight: 400"><div style="display: inline; bottom:.33em; font-size: 82%; position: relative; vertical-align: baseline;">(2)</div></div></div></td> <td style="font-size: 10pt; font-weight: 400; font-style: normal; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: 400; font-style: normal; text-align: center; border-bottom: Black 1pt solid"><div style=" margin-top: 0; margin-bottom: 0">Weighted Average</div> <div style=" margin-top: 0; margin-bottom: 0">Fair Value <div style="display: inline; font-size: 10pt; font-style: normal; font-weight: 400"><div style="display: inline; bottom:.33em; font-size: 82%; position: relative; vertical-align: baseline;">(2)</div></div></div></td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 58%; font-size: 10pt">Outstanding &amp; Unvested, December 31, 2019</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 11%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">24</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 11%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">12.84</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 11%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">311</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; padding-left: 10pt">Granted</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-left: 10pt">Converted to common stock</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">(10</div></td> <td style="font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">$</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">20.24</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; padding-left: 10pt">Cancelled</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">(1</div></td> <td style="font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">$</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">20.24</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 1pt; padding-left: 10pt">Forfeited</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">&nbsp;</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt; padding-bottom: 2.5pt">Outstanding &amp; Unvested, September 30, 2020</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">13</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">11.87</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">156</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> </tr> </table></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; min-; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center">Weighted Average</td> <td style="font-size: 10pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center">Weighted Average</td> <td style="font-size: 10pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center">Aggregate</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center">Number of</td> <td style="font-size: 10pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center">Exercise Price</td> <td style="font-size: 10pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center">Remaining</td> <td style="font-size: 10pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center">Intrinsic</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Shares</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Per Share</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid">Contractual Life (years)</td> <td style="font-size: 10pt; font-weight: 400; font-style: normal; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: 400; font-style: normal; text-align: center; border-bottom: Black 1pt solid">Value<div style="display: inline; font-size: 10pt; font-style: normal; font-weight: 400"><div style="display: inline; bottom:.33em; font-size: 82%; position: relative; vertical-align: baseline;">(1)</div></div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 48%; font-size: 10pt">Outstanding, December 31, 2019</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">584</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">14.94</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">7.9</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; font-size: 10pt; text-align: left">Granted</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; font-size: 10pt; text-align: left">Exercised</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; font-size: 10pt; text-align: left; padding-bottom: 1pt">Forfeited</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">(3</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">)</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">$</td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">4.37</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</td> <td style="padding-bottom: 1pt; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">&nbsp;</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 2.5pt">Outstanding, September 30, 2020</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">581</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">14.93</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">7.1</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; padding-bottom: 2.5pt">Exercisable, September 30, 2020</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">396</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">15.49</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">6.6</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">-</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> </tr> </table></div> <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-style: italic; font: inherit;">10.</div> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Business Segment Reporting</div></div> <div style=" font-size: 10pt; margin: 0pt 0">&nbsp;</div> <div style=" font-size: 10pt; margin: 0pt 0"><div style="display: inline; font-weight: bold;"></div></div> <div style=" font-size: 10pt; text-indent: 0.25in; margin: 0pt 0">The Company manages its operations as <div style="display: inline; font-style: italic; font: inherit;">one</div> segment, drug testing services. As a result, the financial information disclosed herein materially represents all of the financial information related to the Company's principal operating segment. All Brazil sales are through <div style="display: inline; font-style: italic; font: inherit;">one</div> independent distributor. The Company's revenues by geographic region are as follows (in thousands):</div> <div style=" font-size: 10pt; text-indent: 0.25in; margin: 0pt 0">&nbsp;</div> <div> <table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; min-width: 700px;"> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center">Three Months Ended</td> <td style="font-size: 10pt; font-weight: bold">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center">Nine Months Ended</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">September 30,</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="7" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">September 30,</td> </tr> <tr style="vertical-align: bottom"> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2020</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2019</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2020</td> <td style="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</td> <td colspan="3" style="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2019</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left">Consolidated Revenue:</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; width: 48%; font-size: 10pt; text-align: left">United States</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">4,977</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">7,102</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">14,441</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> <td style="width: 1%; font-size: 10pt">&nbsp;</td> <td style="width: 1%; font-size: 10pt; text-align: left">$</td> <td style="width: 10%; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">20,969</div></td> <td style="width: 1%; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-left: 10pt; font-size: 10pt">Brazil</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">62</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">2,619</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">1,207</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt">&nbsp;</td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">7,620</div></td> <td style="font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; font-size: 10pt; padding-bottom: 1pt">Other</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">135</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">131</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">377</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 1pt">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">374</div></td> <td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="font-size: 10pt; text-align: left; padding-bottom: 2.5pt">Total Revenue</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">5,174</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">9,852</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">16,025</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> <td style="font-size: 10pt; padding-bottom: 2.5pt">&nbsp;</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right"><div style="display: inline; font-style: italic; font: inherit;">28,963</div></td> <td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">&nbsp;</td> </tr> </table> </div></div> 896000 1238000 2858000 3455000 449000 509000 24000 13000 231000 396000 15.49 3000 0 0 584000 581000 14.94 14.93 4.37 P6Y219D P7Y328D P7Y36D 31000 32249000 -10082000 -3754000 -1624000 16820000 31000 32412000 -10082000 -4906000 -1647000 15808000 31000 32564000 -10082000 -6956000 -1633000 13924000 31000 32690000 -10082000 -8063000 -1634000 12942000 31000 31523000 -10082000 -1326000 -1399000 18747000 31000 31681000 -10082000 -1690000 -1447000 18493000 31000 31809000 -10082000 -1916000 -1365000 18477000 31000 31999000 -10082000 -2232000 -1696000 18020000 668000 668000 10082000 10082000 16000 5526000 5517000 5522000 5529000 5526000 5517000 5522000 5513000 Weighted average price per share is the weighted grant price based on the closing market price of each of the stock grants related to each grant of stock unit awards. The weighted average fair value is the weighted average share price times the number of shares. Stock options had no aggregate intrinsic value as of December 31, 2019 and September 30, 2020. 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Document And Entity Information - shares
9 Months Ended
Sep. 30, 2020
Nov. 03, 2020
Document Information [Line Items]    
Entity Registrant Name PSYCHEMEDICS CORP  
Entity Central Index Key 0000806517  
Trading Symbol pmd  
Current Fiscal Year End Date --12-31  
Entity Filer Category Non-accelerated Filer  
Entity Current Reporting Status Yes  
Entity Emerging Growth Company false  
Entity Small Business true  
Entity Interactive Data Current Yes  
Entity Common Stock, Shares Outstanding (in shares)   5,526,493
Entity Shell Company false  
Document Type 10-Q  
Document Period End Date Sep. 30, 2020  
Document Fiscal Year Focus 2020  
Document Fiscal Period Focus Q3  
Amendment Flag false  
Title of 12(b) Security Common stock. $0.005 par value  
XML 13 R2.htm IDEA: XBRL DOCUMENT v3.20.2
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)
$ in Thousands
Sep. 30, 2020
Dec. 31, 2019
Current Assets:    
Cash $ 1,809 $ 7,283
Accounts receivable, net of allowance for doubtful accounts of $40 in 2020 and $45 in 2019 3,890 3,780
Prepaid expenses and other current assets 1,299 1,788
Income tax receivable 1,833
Total Current Assets 8,831 12,851
Fixed assets, net of accumulated amortization and depreciation of $16,257 in 2020 and $16,197 in 2019 9,746 10,862
Other assets 885 943
Deferred tax asset 10
Operating lease right-of-use assets 4,508 2,875
Total Assets 23,980 27,531
Current Liabilities:    
Accounts payable 416 617
Accrued expenses 1,357 3,577
Current portion of long-term debt 685 678
Current operating lease liabilities 884 963
Total Current Liabilities 3,342 5,835
Long-term debt 3,617 1,951
Long-term deferred tax liabilities 550
Long-term portion of operating lease liabilities 4,079 2,375
Total Liabilities 11,038 10,711
Commitments and Contingencies (Note 6)
Shareholders' Equity:    
Preferred stock, $0.005 par value, 873 shares authorized, no shares issued or outstanding
Common stock, $0.005 par value; 50,000 shares authorized Shares issued and outstanding: 6,195 in 2020 and 6,185 in 2019 31 31
Additional paid-in capital 32,690 32,249
Accumulated deficit (8,063) (3,754)
Less - Treasury stock, at cost, 668 shares (10,082) (10,082)
Accumulated other comprehensive loss (1,634) (1,624)
Total Shareholders' Equity 12,942 16,820
Total Liabilities and Shareholders' Equity $ 23,980 $ 27,531
XML 14 R3.htm IDEA: XBRL DOCUMENT v3.20.2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)
shares in Thousands, $ in Thousands
Sep. 30, 2020
Dec. 31, 2019
Allowance for doubtful accounts $ 40 $ 45
Accumulated amortization and depreciation $ 16,257 $ 16,197
Preferred stock, par value (in dollars per share) $ 0.005 $ 0.005
Preferred stock, shares authorized (in shares) 873 873
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Common stock, par value (in dollars per share) $ 0.005 $ 0.005
Common stock, shares authorized (in shares) 50,000 50,000
Common stock, shares issued (in shares) 6,195 6,185
Common stock, shares outstanding (in shares) 6,195 6,185
Treasury stock, shares (in shares) 668 668
XML 15 R4.htm IDEA: XBRL DOCUMENT v3.20.2
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Revenues $ 5,174 $ 9,852 $ 16,025 $ 28,963
Cost of revenues 4,041 5,470 12,416 16,004
Gross profit 1,133 4,382 3,609 12,959
Operating Expenses:        
General & administrative 1,341 1,417 4,727 4,687
Marketing & selling 896 1,238 2,858 3,455
Research & development 305 393 981 1,213
Total Operating Expenses 2,542 3,048 8,566 9,355
Operating income (loss) (1,409) 1,334 (4,957) 3,604
Other income (expense), net (17) 6 (129) 54
Income (loss) before provision for (benefit from) income taxes (1,426) 1,340 (5,086) 3,658
Provision for (benefit from) income taxes (319) 663 (1,770) 1,586
Net income (loss) (1,107) 677 (3,316) 2,072
Other comprehensive income (loss):        
Foreign currency translation (330) (10) (297)
Total comprehensive income (loss) $ (1,107) $ 347 $ (3,326) $ 1,775
Basic net income (loss) per share (in dollars per share) $ (0.20) $ 0.12 $ (0.60) $ 0.38
Diluted net income (loss) per share (in dollars per share) (0.20) 0.12 (0.60) 0.37
Dividends declared per share (in dollars per share) $ 0.18 $ 0.18 $ 0.54
XML 16 R5.htm IDEA: XBRL DOCUMENT v3.20.2
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($)
$ in Thousands
Common Stock [Member]
Additional Paid-in Capital [Member]
Treasury Stock [Member]
Retained Earnings [Member]
AOCI Attributable to Parent [Member]
Total
Balance at Dec. 31, 2018 $ 31 $ 31,523 $ (10,082) $ (1,326) $ (1,399) $ 18,747
Stock compensation expense 158 158
Cash dividends ($0.18 per share) (991) (991)
Net income (loss)       627   627
Other comprehensive income (loss) (48) (48)
Balance at Mar. 31, 2019 31 31,681 (10,082) (1,690) (1,447) 18,493
Balance at Dec. 31, 2018 31 31,523 (10,082) (1,326) (1,399) 18,747
Net income (loss)           2,072
Balance at Sep. 30, 2019 31 31,999 (10,082) (2,232) (1,696) 18,020
Balance at Mar. 31, 2019 31 31,681 (10,082) (1,690) (1,447) 18,493
Stock compensation expense 161 161
Cash dividends ($0.18 per share) (994) (994)
Net income (loss) 768 768
Other comprehensive income (loss) 82 82
Tax withholding from employee stock plans (33) (33)
Balance at Jun. 30, 2019 31 31,809 (10,082) (1,916) (1,365) 18,477
Stock compensation expense 190 190
Cash dividends ($0.18 per share) (993) (993)
Net income (loss) 677 677
Other comprehensive income (loss) (331) (331)
Balance at Sep. 30, 2019 31 31,999 (10,082) (2,232) (1,696) 18,020
Balance at Dec. 31, 2019 31 32,249 (10,082) (3,754) (1,624) 16,820
Stock compensation expense   163     163
Cash dividends ($0.18 per share) (993) (993)
Net income (loss) (159) (159)
Other comprehensive income (loss) (23) (23)
Balance at Mar. 31, 2020 31 32,412 (10,082) (4,906) (1,647) 15,808
Balance at Dec. 31, 2019 31 32,249 (10,082) (3,754) (1,624) 16,820
Net income (loss)           (3,316)
Balance at Sep. 30, 2020 31 32,690 (10,082) (8,063) (1,634) 12,942
Balance at Mar. 31, 2020 31 32,412 (10,082) (4,906) (1,647) 15,808
Stock compensation expense 160 160
Net income (loss) (2,050) (2,050)
Other comprehensive income (loss) 14 14
Tax withholding from employee stock plans (8) (8)
Balance at Jun. 30, 2020 31 32,564 (10,082) (6,956) (1,633) 13,924
Stock compensation expense 126 126
Net income (loss) (1,107) (1,107)
Other comprehensive income (loss) (1) (1)
Balance at Sep. 30, 2020 $ 31 $ 32,690 $ (10,082) $ (8,063) $ (1,634) $ 12,942
XML 17 R6.htm IDEA: XBRL DOCUMENT v3.20.2
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) (Parentheticals) - $ / shares
3 Months Ended 9 Months Ended
Sep. 30, 2020
Mar. 31, 2020
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Sep. 30, 2020
Sep. 30, 2019
Dividends declared per share (in dollars per share) $ 0.18 $ 0.18 $ 0.18 $ 0.18 $ 0.18 $ 0.54
XML 18 R7.htm IDEA: XBRL DOCUMENT v3.20.2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net income (loss) $ (3,316) $ 2,072
Adjustments to reconcile net income (loss) to net cash provided by operating activities:    
Depreciation and amortization 1,995 2,219
ROU asset amortization 713
Deferred income taxes (560) (138)
Non-cash interest income 35
Loss on sale of fixed assets 94
Stock-based compensation 449 509
Changes in assets and liabilities:    
Accounts receivable (110) (342)
Other current assets (1,344) (439)
Accounts payable (204) (335)
Operating lease liabilities (721)
Accrued expenses (2,219) (220)
Net cash provided by (used in) operating activities (5,223) 3,361
CASH FLOWS FROM INVESTING ACTIVITIES:    
Proceeds from sale of fixed assets 140
Proceeds from short-term investments 3,810
Purchases of equipment and leasehold improvements (880) (896)
Cost of internally developed software (184) (225)
Other assets 10 (47)
Net cash provided by (used in) investing activities (914) 2,642
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from issuance of stock, net of tax withholding (8) (33)
Proceeds from PPP loan 2,181
Payments of equipment financing (507) (312)
Cash dividends paid (993) (2,978)
Net cash provided by (used in) financing activities 673 (3,323)
Effect of exchange rate changes on cash and cash equivalents (10) (257)
Net increase (decrease) in cash (5,474) 2,423
Cash, beginning of period 7,283 4,069
Cash, end of period 1,809 6,492
Supplemental Disclosures of Cash Flow Information:    
Cash paid for income taxes 236 1,958
Cash paid for interest 60 47
Cash paid for operating leases 800 841
Right-of-use assets acquired through operating leases 2,346 4,382
Purchases of equipment through accounts payable and accrued liabilities $ 3 $ 30
XML 19 R8.htm IDEA: XBRL DOCUMENT v3.20.2
Note 1 - Basis of Presentation
9 Months Ended
Sep. 30, 2020
Notes to Financial Statements  
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]
1.
Basis of Presentation
 
The interim condensed consolidated financial statements of Psychemedics Corporation (the “Company”) presented herein, have been prepared pursuant to the rules of the Securities and Exchange Commission (“SEC”) for quarterly reports on Form
10
-Q and do
not
include all the information and note disclosures required by accounting principles generally accepted in the United States of America. These statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended
December 31, 2019,
included in the Company's
2019
Annual Report on Form
10
-K (
“10
-K”), as filed with the SEC.
 
The condensed consolidated balance sheet as of
September 30, 2020,
the condensed consolidated statements of operations and comprehensive income (loss) for the
three
-month and
nine
-month periods ended
September 30, 2020
and
2019,
the condensed consolidated statements of shareholders' equity for the
nine
-month periods ended
September 30, 2020
and
2019
and the condensed consolidated statements of cash flows for the
nine
-month periods ended
September 30, 2020
and
2019
are unaudited but, in the opinion of management, include all adjustments necessary for a fair presentation of results for these interim periods. The condensed consolidated balance sheet as of
December 31, 2019
has been derived from the Company's annual financial statements that were audited by an independent registered public accounting firm, but does
not
include all of the information and footnotes required for complete annual financial statements.
 
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The results of operations for the
three
months and
nine
months ended
September 30, 2020
may
not
be indicative of the results that
may
be expected for the year ending
December 31, 2020,
or any other period.
 
Unless the context requires otherwise, the terms “we”, “us”, “our”, or “the Company” refer to Psychemedics Corporation and its consolidated subsidiaries.
XML 20 R9.htm IDEA: XBRL DOCUMENT v3.20.2
Note 2 - COVID-19 Pandemic
9 Months Ended
Sep. 30, 2020
Notes to Financial Statements  
Effect of Covid-19 Pandemic [Text Block]
2.
COVID-
19
Pandemic
 
The outbreak of coronavirus (“COVID-
19”
) which was declared by the World Health Organization to be a pandemic, has, and is expected to continue to impact worldwide economic activity. While our domestic business has been deemed an essential business and we continue to provide services to our customers, COVID-
19
has had a significant impact on our entire operations. Additionally, COVID-
19's
effect on the overall economy has had an adverse impact on hiring, which is having a negative impact on our testing volume. Due to COVID-
19,
the Brazilian government closed all driver license bureaus and extended the renewal period for all drivers licenses, which has, and will continue to have a material adverse impact on expected testing volume in Brazil for the next year.
 
The Coronavirus Aid, Relieve and Economic Security Act (“CARES”) Act, enacted on
March 27, 2020,
was an emergency economic stimulus package that included spending provisions and tax cuts to strengthen the United States economy and to fund a nationwide effort to curtail the effect of COVID-
19.
The principal impact of the CARES Act was the adoption of the Paycheck Protection Program described below. The CARES Act also provided sweeping tax changes in response to the COVID-
19
pandemic, including amendments to certain provisions of the previously enacted Tax Cuts and Jobs Act (“TCJA”). The Company recognized a provision of
$0.1
million and a benefit of
$1.3
million for the
three
and
nine
months ended
September 30, 2020,
respectively, as a component of income tax expense from continuing operations related to the tax provisions in the CARES Act. Based on the Company's initial assessments, the Company anticipates that the CARES Act will allow the Company to defer the employer portion of its FICA taxes to
2021
and
2022
and allow the Company to fully carryback the anticipated
2020
net operating loss, if any, for a refund of taxes previously paid. The Company continues to review the tax-related provisions of the CARES Act and its potential impact on the Company.
 
Paycheck Protection Program Loan
 
On
May 1, 2020,
the Company entered into a term loan with Bank of America N.A. under the Paycheck Protection Program (“PPP”) administered by the United States Small Business Administration (“SBA”) under the CARES Act. The principal amount of the loan was
$2,181,157,
which is evidenced by a promissory note with a maturity date of
May 4, 2022. 
The note bears interest on the unpaid balance at the rate of
one
percent (
1%
) per annum. The note contains a deferral period of
six
months, for which
no
interest or principal payments are due. The Company is in the process of applying for loan forgiveness with the SBA and expects a final approval by the end of fiscal
2020
or in the
first
quarter of
2021.
 
Accounts Receivable
 
We believe our allowance for credit losses related to our accounts receivable remained adequate as of
September 30, 2020,
due to the essential nature of our customers business, as well as the diversity of our large customer base. While we anticipate there could be an increase in the aging of our accounts receivable, we do
not
anticipate a significant increase in default risk.
 
Risk and Uncertainties
 
The duration and severity of COVID-
19
-related potential disruptions involve risks and uncertainties and it is
not
possible at this time to estimate the full impact on our business and could adversely affect our estimates, results of operations and financial condition.
 
To help mitigate potential effects of the pandemic on the Company, there are several safety measures that have been implemented to ensure the safety of our employees as well as maintaining our staff and business continuity. The Company is providing personal protection equipment and implemented policies at our laboratory including temperature checks and physical distancing.
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Note 3 - Fair Value Measurements
9 Months Ended
Sep. 30, 2020
Notes to Financial Statements  
Fair Value Disclosures [Text Block]
3.
       Fair Value Measurements
 
The Company has financial instruments, such as accounts receivable, accounts payable, and accrued expenses, which are stated at carrying amounts that approximate fair value because of the short maturity of those instruments. The carrying amount of the Company's long-term debt approximates fair value as the interest rate on the debt approximates the estimated borrowing rate currently available to the Company.
XML 22 R11.htm IDEA: XBRL DOCUMENT v3.20.2
Note 4 - Stock-based Compensation
9 Months Ended
Sep. 30, 2020
Notes to Financial Statements  
Share-based Payment Arrangement [Text Block]
4.
Stock-Based Compensation
 
The Company's
2006
Incentive Plan (“the Plan”) provides for cash-based awards or the grant or issuance of stock-based awards. As of
September 30, 2020,
231
thousand shares remained available for future grant under the Plan.
 
Share-based compensation is measured at the grant date based on the fair value of the award and is recognized as an expense over the requisite service period (generally the vesting period of the equity grant). The compensation cost charged against income is included in cost of revenues and operating expenses as follows (in thousands):
 
    Three Months Ended   Nine Months Ended
    September 30,   September 30,
    2020   2019   2020   2019
Share-based compensation related to:                                
Stock option grants   $
102
    $
151
    $
353
    $
372
 
Restricted Stock Unit awards    
24
     
39
     
96
     
137
 
Total share-based compensation   $
126
    $
190
    $
449
    $
509
 
 
There was
no
income tax benefit recognized in the condensed consolidated statements of income for share-based compensation arrangements for the
three
-month and
nine
-month periods ended
September 30, 2020
and
2019.
 
A summary of the Company's stock option activity for the
nine
months ended
September 30, 2020
is as follows (in thousands except per share amounts):
 
        Weighted Average   Weighted Average   Aggregate
    Number of   Exercise Price   Remaining   Intrinsic
    Shares   Per Share   Contractual Life (years)   Value
(1)
Outstanding, December 31, 2019    
584
    $
14.94
     
7.9
    $
-
 
Granted    
-
     
 
     
 
     
 
 
Exercised    
-
     
 
     
 
     
 
 
Forfeited    
(3
)   $
4.37
     
 
     
 
 
Outstanding, September 30, 2020    
581
    $
14.93
     
7.1
    $
-
 
                                 
Exercisable, September 30, 2020    
396
    $
15.49
     
6.6
    $
-
 
 
(
1
)
Stock options had
no
aggregate intrinsic value as of
December 31, 2019
and
September 30, 2020.
Intrinsic value is calculated based on the amount by which the closing market value of the Company's stock exceeded the exercise price of the underlying options, multiplied by the number of shares.
 
A summary of the Company's stock unit award (“SUA”) activity for the
nine
months ended
September 30, 2020
is as follows (in thousands except per share amounts):
 
    Number of Shares  
Weighted Average
Price per Share
(2)
 
Weighted Average
Fair Value
(2)
             
Outstanding & Unvested, December 31, 2019    
24
    $
12.84
    $
311
 
Granted    
-
     
 
     
 
 
Converted to common stock    
(10
)   $
20.24
     
 
 
Cancelled    
(1
)   $
20.24
     
 
 
Forfeited    
-
     
 
     
 
 
Outstanding & Unvested, September 30, 2020    
13
    $
11.87
    $
156
 
 
(
2
)
Weighted average price per share is the weighted grant price based on the closing market price of each of the stock grants related to each grant of stock unit awards. The weighted average fair value is the weighted average share price times the number of shares.
 
As of
September 30, 2020,
820
thousand shares of common stock were reserved for issuance under the Plan. As of
September 30, 2020,
the unamortized fair value of awards relating to outstanding SUAs and options was
$674
thousand, which is expected to be amortized over a weighted average period of
2.2
years.
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Note 5 - Basic and Diluted Net Income (Loss) Per Share
9 Months Ended
Sep. 30, 2020
Notes to Financial Statements  
Earnings Per Share [Text Block]
5.
       Basic and Diluted Net Income (Loss) Per Share
 
Basic net income (loss) per share is computed by dividing net income (or loss) by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing net income (or loss) by the weighted average number of common and dilutive common equivalent shares outstanding during the period when the effect is dilutive. The number of dilutive common equivalent shares outstanding during the period was determined in accordance with the treasury-stock method. Common equivalent shares consisted of common stock issuable upon the exercise of outstanding options and common stock issuable upon the vesting of outstanding, unvested SUAs. Basic and diluted weighted average common shares outstanding for the
three
and
nine
months ended
September 30, 2020
and
2019
were as follows (in thousands):
 
    Three Months Ended   Nine Months Ended
    September 30,   September 30,
    2020   2019   2020   2019
Weighted average common shares outstanding, basic    
5,526
     
5,517
     
5,522
     
5,513
 
Dilutive common equivalent shares    
-
     
-
     
-
     
16
 
Weighted average common shares outstanding, diluted    
5,526
     
5,517
     
5,522
     
5,529
 
 
The computation of diluted earnings (loss) per share for the
three
and
nine
month period ended
September 30, 2020
and
2019
excludes the effect of the potential exercise of stock awards, including stock options, when the effect is anti-dilutive. For the
three
and
nine
month periods ended
September 30, 2020,
the number of antidilutive stock awards excluded from diluted earnings (loss) per share was
594
thousand.
XML 24 R13.htm IDEA: XBRL DOCUMENT v3.20.2
Note 6 - Commitments and Contingencies
9 Months Ended
Sep. 30, 2020
Notes to Financial Statements  
Commitments and Contingencies Disclosure [Text Block]
6.
Commitments and Contingencies
 
The Company is subject to legal proceedings and claims which arise in the ordinary course of its business. While the ultimate outcome of individual legal claims is inherently unpredictable, we believe that the final resolution of any pending actions will
not
have a material adverse effect on our results of operations, financial position, liquidity or capital resources.
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Note 7 - Operating Leases
9 Months Ended
Sep. 30, 2020
Notes to Financial Statements  
Lessee, Operating Leases [Text Block]
7.
Operating Leases
 
The Company has
five
operating leases for office and laboratory space used to conduct business. The exercise of lease renewal options is at our discretion. There is
one
lease which contains renewal options to extend the lease terms included in our Right-Of-Use (“ROU”) assets and lease liabilities as they are reasonably certain of exercise. The Company regularly evaluates the renewal options and when they are reasonably certain of exercise. As most of the Company's leases do
not
provide an implicit rate, the Company uses the incremental borrowing rate based on the information available at the lease commencement date in determining the net present value (NPV) of the lease payments.
 
As of
September 30, 2020,
the Company recognized a Right-Of-Use (“ROU”) asset of
$4.5
million and an operating lease liability of
$5.0
million based on the present value of the minimum rental payments as a result of adoption of ASC Topic
842.
The weighted average discount rate used for leases as of
September 30, 2020
is
3.9%.
The weighted average lease term as of
September 30, 2020
is
5.2
years. The operating lease expense for the
three
and
nine
months ended
September 30, 2020
was
$288
thousand and
$853
thousand, respectively.
 
Maturities and balance sheet presentation of the Company's lease liabilities for all operating leases as of
September 30, 2020
is as follows (in thousands):
 
2020    
238
 
2021    
1,041
 
2022    
1,028
 
2023    
1,096
 
2024    
1,035
 
2025    
593
 
2026    
458
 
Total Lease Payments    
5,489
 
Less Interest:    
(526
)
Present value of lease liabilities   $
4,963
 
         
Current operating lease liabilities   $
884
 
Long-term operating lease liabilities    
4,079
 
Total   $
4,963
 
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Note 8 - Debt and Other Financing Arrangements
9 Months Ended
Sep. 30, 2020
Notes to Financial Statements  
Debt Disclosure [Text Block]
8.
Debt and Other Financing Arrangements
 
On
March 20, 2014,
the Company entered into an equipment financing arrangement (“Loan Agreement”) with Banc of America Leasing & Capital, which it amended on
August 8, 2014,
September 15, 2015,
October 30, 2017,
and
December 2, 2019.
The terms of the arrangement are detailed in the
10
-K.
 
The weighted average interest rate on outstanding debt under the Loan Agreement was
3.3%
and
3.4%
for the
three
and
nine
months ended
September 30, 2020.
The interest expense was
$16
thousand and
$60
thousand for the
three
and
nine
months ended
September 30, 2020,
respectively. As of
September 30, 2020,
the weighted average interest rate was
2.6%
and there was
$2.1
million of outstanding debt related under the loan agreement. As of
September 30, 2020,
the Company was
not
in compliance with these covenants. Subsequent to
September 30, 2020,
the Company amended its debt arrangement to waive the non-compliance and amend certain covenants through the quarter ended
June 30, 2021.
 
The annual principal repayment requirements for debt obligations as of
September 30, 2020
were as follows (in thousands):
 
2020   $
170
 
2021    
688
 
2022    
664
 
2023    
294
 
2024    
305
 
Long-term debt from equipment financing    
2,121
 
Less current portion of long-term debt    
(685
)
Long-term debt from equipment financing, net of current portion    
1,436
 
PPP Loan    
2,181
 
Total long-term debt, net of current portion   $
3,617
 
 
1
See note
2.
for description of PPP Loan.
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Note 9 - Revenue
9 Months Ended
Sep. 30, 2020
Notes to Financial Statements  
Revenue from Contract with Customer [Text Block]
9.
        Revenue
 
The table below disaggregates our external revenue by major source (in thousands).  For additional revenue detail relating to geographic breakdown of sales, see Note
10
– “Business Segment Reporting”.
 
    Three Months Ended   Nine Months Ended
    September 30,   September 30,
    2020   2019   2020   2019
Testing   $
4,590
    $
9,069
    $
14,363
    $
26,543
 
Shipping/Collection (hair)    
562
     
714
     
1,576
     
2,225
 
Other    
22
     
69
     
86
     
195
 
Total Revenue   $
5,174
    $
9,852
    $
16,025
    $
28,963
 
XML 28 R17.htm IDEA: XBRL DOCUMENT v3.20.2
Note 10 - Business Segment Reporting
9 Months Ended
Sep. 30, 2020
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
10.
       Business Segment Reporting
 
The Company manages its operations as
one
segment, drug testing services. As a result, the financial information disclosed herein materially represents all of the financial information related to the Company's principal operating segment. All Brazil sales are through
one
independent distributor. The Company's revenues by geographic region are as follows (in thousands):
 
    Three Months Ended   Nine Months Ended
    September 30,   September 30,
    2020   2019   2020   2019
Consolidated Revenue:                                
United States   $
4,977
    $
7,102
    $
14,441
    $
20,969
 
Brazil    
62
     
2,619
     
1,207
     
7,620
 
Other    
135
     
131
     
377
     
374
 
Total Revenue   $
5,174
    $
9,852
    $
16,025
    $
28,963
 
XML 29 R18.htm IDEA: XBRL DOCUMENT v3.20.2
Note 11 - Significant Customers
9 Months Ended
Sep. 30, 2020
Notes to Financial Statements  
Concentration Risk Disclosure [Text Block]
11.
Significant Customers
 
The Company had
no
customers that represented over
10%
of revenue during the
nine
months ended
September 30, 2020.
One customer represented
26%
of revenue for the
nine
months ended
September 30, 2019.
The Company had
one
customer that represented
24%
of the total accounts receivable balance as of
September 30, 2020
and
two
customers that represented
13%
and
11%,
respectively, of the total accounts receivable balance as of
December 31, 2019.
XML 30 R19.htm IDEA: XBRL DOCUMENT v3.20.2
Note 12 - Recently Adopted Accounting Pronouncements
9 Months Ended
Sep. 30, 2020
Notes to Financial Statements  
Accounting Standards Update and Change in Accounting Principle [Text Block]
12.
       Recently Adopted Accounting Pronouncements
 
There are
no
recently adopted accounting pronouncements for the quarter.
XML 31 R20.htm IDEA: XBRL DOCUMENT v3.20.2
Note 13 - Accounting Pronouncements Issued But Not Yet Effective
9 Months Ended
Sep. 30, 2020
Notes to Financial Statements  
Description of New Accounting Pronouncements Not yet Adopted [Text Block]
13.
       Accounting Pronouncements Issued But
Not
Yet Effective
 
In
December 2019,
the Financial Accounting Standards Board (“FASB”) issued ASU
2019
-
12,
“Income Taxes (Topic
740
): Simplifying the Accounting for Income Taxes”, which is intended to simplify the accounting for income taxes. This ASU removes certain exceptions to the general principles in Topic
740
and clarifies and amends existing guidance to improve consistent application. The new standard will be effective beginning
January 1, 2021.
As of
September 30, 2020,
the Company is continuing to evaluate the potential impact this ASU
may
have on its financial position and results of operations upon adoption.
XML 32 R21.htm IDEA: XBRL DOCUMENT v3.20.2
Note 4 - Stock-based Compensation (Tables)
9 Months Ended
Sep. 30, 2020
Notes Tables  
Share-based Payment Arrangement, Cost by Plan [Table Text Block]
    Three Months Ended   Nine Months Ended
    September 30,   September 30,
    2020   2019   2020   2019
Share-based compensation related to:                                
Stock option grants   $
102
    $
151
    $
353
    $
372
 
Restricted Stock Unit awards    
24
     
39
     
96
     
137
 
Total share-based compensation   $
126
    $
190
    $
449
    $
509
 
Share-based Payment Arrangement, Option, Activity [Table Text Block]
        Weighted Average   Weighted Average   Aggregate
    Number of   Exercise Price   Remaining   Intrinsic
    Shares   Per Share   Contractual Life (years)   Value
(1)
Outstanding, December 31, 2019    
584
    $
14.94
     
7.9
    $
-
 
Granted    
-
     
 
     
 
     
 
 
Exercised    
-
     
 
     
 
     
 
 
Forfeited    
(3
)   $
4.37
     
 
     
 
 
Outstanding, September 30, 2020    
581
    $
14.93
     
7.1
    $
-
 
                                 
Exercisable, September 30, 2020    
396
    $
15.49
     
6.6
    $
-
 
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block]
    Number of Shares  
Weighted Average
Price per Share
(2)
 
Weighted Average
Fair Value
(2)
             
Outstanding & Unvested, December 31, 2019    
24
    $
12.84
    $
311
 
Granted    
-
     
 
     
 
 
Converted to common stock    
(10
)   $
20.24
     
 
 
Cancelled    
(1
)   $
20.24
     
 
 
Forfeited    
-
     
 
     
 
 
Outstanding & Unvested, September 30, 2020    
13
    $
11.87
    $
156
 
XML 33 R22.htm IDEA: XBRL DOCUMENT v3.20.2
Note 5 - Basic and Diluted Net Income (Loss) Per Share (Tables)
9 Months Ended
Sep. 30, 2020
Notes Tables  
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]
    Three Months Ended   Nine Months Ended
    September 30,   September 30,
    2020   2019   2020   2019
Weighted average common shares outstanding, basic    
5,526
     
5,517
     
5,522
     
5,513
 
Dilutive common equivalent shares    
-
     
-
     
-
     
16
 
Weighted average common shares outstanding, diluted    
5,526
     
5,517
     
5,522
     
5,529
 
XML 34 R23.htm IDEA: XBRL DOCUMENT v3.20.2
Note 7 - Operating Leases (Tables)
9 Months Ended
Sep. 30, 2020
Notes Tables  
Lessee, Operating Lease, Liability, Maturity [Table Text Block]
2020    
238
 
2021    
1,041
 
2022    
1,028
 
2023    
1,096
 
2024    
1,035
 
2025    
593
 
2026    
458
 
Total Lease Payments    
5,489
 
Less Interest:    
(526
)
Present value of lease liabilities   $
4,963
 
         
Current operating lease liabilities   $
884
 
Long-term operating lease liabilities    
4,079
 
Total   $
4,963
 
XML 35 R24.htm IDEA: XBRL DOCUMENT v3.20.2
Note 8 - Debt and Other Financing Arrangements (Tables)
9 Months Ended
Sep. 30, 2020
Notes Tables  
Schedule of Long-term Debt Instruments [Table Text Block]
2020   $
170
 
2021    
688
 
2022    
664
 
2023    
294
 
2024    
305
 
Long-term debt from equipment financing    
2,121
 
Less current portion of long-term debt    
(685
)
Long-term debt from equipment financing, net of current portion    
1,436
 
PPP Loan    
2,181
 
Total long-term debt, net of current portion   $
3,617
 
XML 36 R25.htm IDEA: XBRL DOCUMENT v3.20.2
Note 9 - Revenue (Tables)
9 Months Ended
Sep. 30, 2020
Notes Tables  
Disaggregation of Revenue [Table Text Block]
    Three Months Ended   Nine Months Ended
    September 30,   September 30,
    2020   2019   2020   2019
Testing   $
4,590
    $
9,069
    $
14,363
    $
26,543
 
Shipping/Collection (hair)    
562
     
714
     
1,576
     
2,225
 
Other    
22
     
69
     
86
     
195
 
Total Revenue   $
5,174
    $
9,852
    $
16,025
    $
28,963
 
XML 37 R26.htm IDEA: XBRL DOCUMENT v3.20.2
Note 10 - Business Segment Reporting (Tables)
9 Months Ended
Sep. 30, 2020
Notes Tables  
Revenue from External Customers by Geographic Areas [Table Text Block]
    Three Months Ended   Nine Months Ended
    September 30,   September 30,
    2020   2019   2020   2019
Consolidated Revenue:                                
United States   $
4,977
    $
7,102
    $
14,441
    $
20,969
 
Brazil    
62
     
2,619
     
1,207
     
7,620
 
Other    
135
     
131
     
377
     
374
 
Total Revenue   $
5,174
    $
9,852
    $
16,025
    $
28,963
 
XML 38 R27.htm IDEA: XBRL DOCUMENT v3.20.2
Note 2 - COVID-19 Pandemic (Details Textual) - USD ($)
3 Months Ended 9 Months Ended
May 01, 2020
Sep. 30, 2020
Sep. 30, 2020
Sep. 30, 2019
Income Tax Benefit CARES Act   $ 100,000 $ 1,300,000  
Proceeds from Issuance of Long-term Debt, Total     $ 2,181,000
Paycheck Protection Program CARES Act [Member]        
Proceeds from Issuance of Long-term Debt, Total $ 2,181,157      
XML 39 R28.htm IDEA: XBRL DOCUMENT v3.20.2
Note 4 - Stock-based Compensation (Details Textual) - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value [1]    
Incentive Plan 2006 [Member]          
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares) 231   231    
Share-based Payment Arrangement, Expense, Tax Benefit $ 0 $ 0 $ 0 $ 0  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value $ 0   $ 0   $ 0
Common Stock, Capital Shares Reserved for Future Issuance (in shares) 820   820    
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total $ 674   $ 674    
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)     2 years 73 days    
[1] Stock options had no aggregate intrinsic value as of December 31, 2019 and September 30, 2020. Intrinsic value is calculated based on the amount by which the closing market value of the Company's stock exceeded the exercise price of the underlying options, multiplied by the number of shares.
XML 40 R29.htm IDEA: XBRL DOCUMENT v3.20.2
Note 4 - Stock-based Compensation - Compensation Cost (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Share-based compensation $ 126 $ 190 $ 449 $ 509
Share-based Payment Arrangement, Option [Member]        
Share-based compensation 102 151 353 372
Restricted Stock Units (RSUs) [Member]        
Share-based compensation $ 24 $ 39 $ 96 $ 137
XML 41 R30.htm IDEA: XBRL DOCUMENT v3.20.2
Note 4 - Stock-based Compensation - Stock Option Activity (Details) - USD ($)
shares in Thousands
9 Months Ended 12 Months Ended
Sep. 30, 2020
Dec. 31, 2019
Outstanding (in shares) 584  
Outstanding, weighted average exercise price (in dollars per share) $ 14.94  
Outstanding, weighted average remaining contractual life (Year) 7 years 36 days 7 years 328 days
Outstanding, aggregate intrinsic value [1]
Granted (in shares)  
Granted, weighted average exercise price (in dollars per share)  
Exercised (in shares)  
Exercised, weighted average exercise price (in dollars per share)  
Forfeited (in shares) (3)  
Forfeited, weighted average exercise price (in dollars per share) $ 4.37  
Outstanding (in shares) 581 584
Outstanding, weighted average exercise price (in dollars per share) $ 14.93 $ 14.94
Exercisable (in shares) 396  
Exercisable, weighted average exercise price (in dollars per share) $ 15.49  
Exercisable, weighted average remaining contractual life (Year) 6 years 219 days  
Exercisable, aggregate intrinsic value [1]  
[1] Stock options had no aggregate intrinsic value as of December 31, 2019 and September 30, 2020. Intrinsic value is calculated based on the amount by which the closing market value of the Company's stock exceeded the exercise price of the underlying options, multiplied by the number of shares.
XML 42 R31.htm IDEA: XBRL DOCUMENT v3.20.2
Note 4 - Stock-based Compensation - Nonvested Award Activity (Details) - Stock Unit Award [Member]
$ / shares in Units, shares in Thousands, $ in Thousands
9 Months Ended
Sep. 30, 2020
USD ($)
$ / shares
shares
Outstanding & Unvested at beginning of period (in shares) | shares 24
Outstanding & Unvested at beginning of period, weighted average price per share (in dollars per share) | $ / shares $ 12.84 [1]
Outstanding & Unvested at beginning of period, weighted average fair value | $ $ 311
Granted (in shares) | shares
Granted, weighted average price per share (in dollars per share) | $ / shares [1]
Granted, weighted average fair value | $
Converted to common stock (in shares) | shares (10)
Converted to common stock, weighted average price per share (in dollars per share) | $ / shares $ 20.24 [1]
Converted to common stock, weighted average fair value | $
Cancelled (in shares) | shares (1)
Cancelled, weighted average price per share (in dollars per share) | $ / shares $ 20.24 [1]
Cancelled, weighted average fair value | $
Forfeited (in shares) | shares
Forfeited, weighted average price per share (in dollars per share) | $ / shares [1]
Forfeited, weighted average fair value | $
Outstanding & Unvested at end of period (in shares) | shares 13
Outstanding & Unvested at end of period, weighted average price per share (in dollars per share) | $ / shares $ 11.87 [1]
Outstanding & Unvested at end of period, weighted average fair value | $ $ 156
[1] Weighted average price per share is the weighted grant price based on the closing market price of each of the stock grants related to each grant of stock unit awards. The weighted average fair value is the weighted average share price times the number of shares.
XML 43 R32.htm IDEA: XBRL DOCUMENT v3.20.2
Note 5 - Basic and Diluted Net Income (Loss) Per Share (Details Textual) - shares
shares in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) 594 594
XML 44 R33.htm IDEA: XBRL DOCUMENT v3.20.2
Note 5 - Basic and Diluted Net Income (Loss) Per Share - Basic and Diluted Weighted Average Common Shares Outstanding (Details) - shares
shares in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Weighted average common shares outstanding, basic (in shares) 5,526 5,517 5,522 5,513
Dilutive common equivalent shares (in shares) 16
Weighted average common shares outstanding, diluted (in shares) 5,526 5,517 5,522 5,529
XML 45 R34.htm IDEA: XBRL DOCUMENT v3.20.2
Note 7 - Operating Leases (Details Textual) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2020
Dec. 31, 2019
Operating Lease, Right-of-Use Asset $ 4,508 $ 4,508 $ 2,875
Operating Lease, Liability, Total $ 4,963 $ 4,963  
Operating Lease, Weighted Average Discount Rate, Percent 3.90% 3.90%  
Operating Lease, Weighted Average Remaining Lease Term (Year) 5 years 73 days 5 years 73 days  
Operating Lease, Expense $ 288 $ 853  
XML 46 R35.htm IDEA: XBRL DOCUMENT v3.20.2
Note 7 - Operating Leases - Maturities of Lease Liabilities (Details) - USD ($)
$ in Thousands
Sep. 30, 2020
Dec. 31, 2019
2020 $ 238  
2021 1,041  
2022 1,028  
2023 1,096  
2024 1,035  
2025 593  
2026 458  
Total Lease Payments 5,489  
Less Interest: (526)  
Present value of lease liabilities 4,963  
Current operating lease liabilities 884 $ 963
Long-term operating lease liabilities 4,079 $ 2,375
Total $ 4,963  
XML 47 R36.htm IDEA: XBRL DOCUMENT v3.20.2
Note 8 - Debt and Other Financing Arrangements (Details Textual) - Banck of America Leasing and Capital [Member] - Equipment Loan Arrangement [Member] - Line of Credit [Member]
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2020
USD ($)
Sep. 30, 2020
USD ($)
Long-term Debt, Weighted Average Interest Rate, over Time 3.30% 3.40%
Interest Expense, Total $ 16 $ 60
Debt, Weighted Average Interest Rate 2.60% 2.60%
Long-term Debt, Total $ 2,100 $ 2,100
XML 48 R37.htm IDEA: XBRL DOCUMENT v3.20.2
Note 8 - Debt and Other Financing Arrangements - Schedule of Debt Repayments (Details) - USD ($)
$ in Thousands
Sep. 30, 2020
Dec. 31, 2019
Less current portion of long-term debt $ (685) $ (678)
Total long-term debt, net of current portion 3,617 $ 1,951
Equipment Loan Arrangement [Member]    
2020 170  
2021 688  
2022 664  
2023 294  
2024 305  
Long-term debt from equipment financing 2,121  
Less current portion of long-term debt (685)  
Total long-term debt, net of current portion 1,436  
Paycheck Protection Program CARES Act [Member]    
Total long-term debt, net of current portion $ 2,181  
XML 49 R38.htm IDEA: XBRL DOCUMENT v3.20.2
Note 9 - Revenue - Revenue by Major Source (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Revenues $ 5,174 $ 9,852 $ 16,025 $ 28,963
Testing [Member]        
Revenues 4,590 9,069 14,363 26,543
Shipping/Collection (Hair) [Member]        
Revenues 562 714 1,576 2,225
Other Revenue [Member]        
Revenues $ 22 $ 69 $ 86 $ 195
XML 50 R39.htm IDEA: XBRL DOCUMENT v3.20.2
Note 10 - Business Segment Reporting (Details Textual)
9 Months Ended
Sep. 30, 2020
Number of Operating Segments 1
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | BRAZIL  
Number of Major Customers 1
XML 51 R40.htm IDEA: XBRL DOCUMENT v3.20.2
Note 10 - Business Segment Reporting - Revenue by Major Source (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Revenues $ 5,174 $ 9,852 $ 16,025 $ 28,963
UNITED STATES        
Revenues 4,977 7,102 14,441 20,969
BRAZIL        
Revenues 62 2,619 1,207 7,620
Other Foreign Countries [Member]        
Revenues $ 135 $ 131 $ 377 $ 374
XML 52 R41.htm IDEA: XBRL DOCUMENT v3.20.2
Note 11 - Significant Customers (Details Textual) - Customer Concentration Risk [Member]
9 Months Ended 12 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Dec. 31, 2019
Revenue Benchmark [Member] | Customer One [Member]      
Concentration Risk, Percentage   26.00%  
Accounts Receivable [Member]      
Concentration Risk, Percentage 24.00%    
Number of Major Customers 1   2
Accounts Receivable [Member] | Customer One [Member]      
Concentration Risk, Percentage     13.00%
Accounts Receivable [Member] | Customer Two [Member]      
Concentration Risk, Percentage     11.00%
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