2021 Q4 Form 10-K Financial Statement

#000155837022003471 Filed on March 14, 2022

View on sec.gov

Income Statement

Concept 2021 Q4 2021 Q3 2021
Revenue $9.659M $8.546M $29.19M
YoY Change 61.96% 115.81% 728.38%
Cost Of Revenue $4.362M $4.254M $14.32M
YoY Change 53.05% 90.59% 80.97%
Gross Profit $5.297M $4.292M $14.87M
YoY Change 70.1% 147.95% -438.97%
Gross Profit Margin 54.84% 50.22% 50.95%
Selling, General & Admin $4.864M $3.427M $15.89M
YoY Change 17.29% 48.61% 47.09%
% of Gross Profit 91.83% 79.85% 106.81%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $515.0K $192.0K $1.114M
YoY Change -49.21% -23.2% 9.86%
% of Gross Profit 9.72% 4.47% 7.49%
Operating Expenses $5.013M $3.720M $17.00M
YoY Change 14.14% 45.6% 43.89%
Operating Profit $284.0K $572.0K -$2.127M
YoY Change -122.22% -169.42% -86.87%
Interest Expense -$662.0K -$296.0K -$1.412M
YoY Change 141.61% -43.08% -43.66%
% of Operating Profit -233.1% -51.75%
Other Income/Expense, Net -$17.00K -$323.0K -$1.458M
YoY Change -101.36% -37.88% 43.22%
Pretax Income -$395.0K $249.0K -$3.585M
YoY Change 246.49% -118.53% -79.18%
Income Tax -$86.00K $158.0K -$829.0K
% Of Pretax Income 63.45%
Net Earnings -$309.0K $91.00K -$2.756M
YoY Change -4.92% -109.31% -81.67%
Net Earnings / Revenue -3.2% 1.06% -9.44%
Basic Earnings Per Share $0.01 -$0.24
Diluted Earnings Per Share -$25.09K $0.01 -$0.24
COMMON SHARES
Basic Shares Outstanding 11.84M 11.84M 11.73M
Diluted Shares Outstanding 15.72M 11.73M

Balance Sheet

Concept 2021 Q4 2021 Q3 2021
SHORT-TERM ASSETS
Cash & Short-Term Investments $4.020M $918.0K $4.020M
YoY Change -8.34% 512.0% -8.34%
Cash & Equivalents $4.020M $918.0K
Short-Term Investments
Other Short-Term Assets $151.0K $104.0K $151.0K
YoY Change -75.57% -76.36% -46.83%
Inventory
Prepaid Expenses
Receivables $27.81M $22.68M $27.81M
Other Receivables $6.022M $5.884M $6.022M
Total Short-Term Assets $38.00M $29.59M $38.00M
YoY Change 52.16% 56.22% 52.16%
LONG-TERM ASSETS
Property, Plant & Equipment $85.00K $109.0K $1.784M
YoY Change -76.12% -87.02% 63.97%
Goodwill $4.448M $4.448M
YoY Change 53.38%
Intangibles $3.649M $3.763M
YoY Change -11.32%
Long-Term Investments $525.0K $638.0K $525.0K
YoY Change -13.65% 30.2% -13.65%
Other Assets $144.0K
YoY Change
Total Long-Term Assets $10.41M $9.979M $10.41M
YoY Change 20.05% 18.52% 20.05%
TOTAL ASSETS
Total Short-Term Assets $38.00M $29.59M $38.00M
Total Long-Term Assets $10.41M $9.979M $10.41M
Total Assets $48.41M $39.57M $48.41M
YoY Change 43.89% 44.62% 43.89%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $2.194M $2.069M $2.194M
YoY Change -23.55% 66.85% -23.58%
Accrued Expenses $153.0K $579.0K $153.0K
YoY Change 23.39% 23.39%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $515.0K $306.0K $1.370M
YoY Change -87.44% -96.4% -69.54%
Total Short-Term Liabilities $3.717M $2.964M $3.717M
YoY Change -51.01% -70.12% -51.01%
LONG-TERM LIABILITIES
Long-Term Debt $13.17M $10.45M $14.27M
YoY Change 485.03% 186.33% 372.08%
Other Long-Term Liabilities $864.0K $580.0K $864.0K
YoY Change -73.2% -96.5% -73.2%
Total Long-Term Liabilities $13.17M $10.45M $15.14M
YoY Change 485.03% -48.31% 142.28%
TOTAL LIABILITIES
Total Short-Term Liabilities $3.717M $2.964M $3.717M
Total Long-Term Liabilities $13.17M $10.45M $15.14M
Total Liabilities $19.45M $15.31M $19.45M
YoY Change 34.77% -49.7% 34.77%
SHAREHOLDERS EQUITY
Retained Earnings -$14.44M -$14.14M
YoY Change 23.58%
Common Stock $13.00K $12.00K
YoY Change 18.18%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $28.96M $24.26M $28.96M
YoY Change
Total Liabilities & Shareholders Equity $48.41M $39.57M $48.41M
YoY Change 43.89% 44.62% 43.89%

Cashflow Statement

Concept 2021 Q4 2021 Q3 2021
OPERATING ACTIVITIES
Net Income -$309.0K $91.00K -$2.756M
YoY Change -4.92% -109.31% -81.67%
Depreciation, Depletion And Amortization $515.0K $192.0K $1.114M
YoY Change -49.21% -23.2% 9.86%
Cash From Operating Activities -$4.021M -$3.091M -$13.37M
YoY Change 58.74% 87.33% 320.01%
INVESTING ACTIVITIES
Capital Expenditures $0.00 $0.00 $0.00
YoY Change -100.0% -100.0%
Acquisitions
YoY Change
Other Investing Activities -$107.0K $30.00K $1.000K
YoY Change -98.51% -102.78% -100.01%
Cash From Investing Activities -$107.0K $30.00K $1.000K
YoY Change -98.57% -102.78% -100.01%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $5.062M
YoY Change -47.33%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 7.230M 19.00K 13.01M
YoY Change -49.64% -99.27% -13.34%
NET CHANGE
Cash From Operating Activities -4.021M -3.091M -13.37M
Cash From Investing Activities -107.0K 30.00K 1.000K
Cash From Financing Activities 7.230M 19.00K 13.01M
Net Change In Cash 3.102M -3.042M -366.0K
YoY Change -28.31% 2435.0% -108.46%
FREE CASH FLOW
Cash From Operating Activities -$4.021M -$3.091M -$13.37M
Capital Expenditures $0.00 $0.00 $0.00
Free Cash Flow -$4.021M -$3.091M -$13.37M
YoY Change 81.62% 87.33% 281.76%

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CY2021 us-gaap Nature Of Operations
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<p style="font-family:'Times New Roman','Times','serif';font-size:10pt;font-weight:bold;text-align:justify;margin:0pt 0pt 12pt 0pt;">1. NATURE OF OPERATIONS</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 12pt 0pt;">Assure Holdings Corp. (“Assure” or the “Company”), through its two indirect wholly-owned subsidiaries, Assure Neuromonitoring, LLC (“Neuromonitoring”) and Assure Networks, LLC (“Networks”), provides technical and professional intraoperative neuromonitoring (“IONM”) surgical support services primarily associated with spine and head surgeries. These services have been recognized as the standard of care by hospitals and surgeons for risk mitigation. Assure Holdings, Inc., a wholly-owned subsidiary, employs most of the corporate employees and performs various corporate services on behalf of the consolidated Company.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 12pt 0pt;">Neuromonitoring employs technologists who utilize technical equipment and their technical training to monitor EEG and EMG signals during surgical procedures and to pre-emptively notify the underlying surgeon of any nerve related issues that are identified. The technologists perform their services in the operating room during the surgeries. The technologists are certified by a third party accreditation agency.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 12pt 0pt;">Networks performs similar support services as Neuromonitoring except that these services are provided by third party contracted neurologists or certified readers. The support services provided by Networks occurs at the same time and for the same surgeries as the support services provided by the Neuromonitoring technologist, except that they typically occur at an offsite location.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 12pt 0pt;">The Company was originally incorporated in Colorado on November 7, 2016. In conjunction with a reverse merger, the Company was redomiciled in Nevada on May 16, 2017.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 12pt 0pt;">Neuromonitoring was formed on August 25, 2015 in Colorado and currently has multiple wholly-owned subsidiaries. The Company’s services are sold in the United States, directly through the Company.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 12pt 0pt;">Networks was formed on November 7, 2016 in Colorado and holds varying ownerships interests in numerous Provider Network Entities (“PEs”), which are professional IONM entities. These entities are accounted for under the equity method of accounting. Additionally, Networks manages other PEs that Networks does not have an ownership interest and charges those PEs a management fee. </p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;font-weight:bold;padding-bottom:12pt;text-align:justify;margin:0pt;"><span style="font-style:italic;">COVID-19</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;background:#ffffff;margin:0pt;">Our business and results of operations have been, and continues to be, adversely affected by the global COVID-19 pandemic and related events and we expect its impact to continue. The impact to date has included periods of significant volatility in various markets and industries, including the healthcare industry. The volatility has had, and we anticipate it will continue to have, an adverse effect on our customers and on our business, financial condition and results of operations, and may result in an impairment of our long-lived assets, including goodwill, increased credit losses and impairments of investments in other companies. In particular, the healthcare industry, hospitals and providers of elective procedures have been and may continue to be impacted by the pandemic and/or other events beyond our control, and further volatility could have an additional negative impact on these industries, customers, and our business. In addition, the COVID-19 pandemic and, to a lesser extent, the impact on other industries, including automotive, electronics and real estate, increased fuel costs, U.S. restrictions on trade, and transitory inflation have impacted and may continue to impact the financial conditions of our customers and the patients they serve.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;padding-top:10.8pt;text-align:justify;background:#ffffff;margin:0pt;">In addition, actions by United States federal, state and foreign governments to address the COVID-19 pandemic, including travel bans, stay-at-home orders and school, business and entertainment venue closures, also had and may continue to have a significant adverse effect on the markets in which we conduct our businesses. COVID-19 poses the risk that our workforce, suppliers, and other partners may be prevented from conducting normal business activities for an extended period of time, including due to shutdowns or stay-at-home orders that may be requested or mandated by governmental authorities. We have implemented policies to allow our employees to work remotely as a result of the pandemic as we reviewed processes related to workplace safety, including social distancing and sanitation practices recommended by the Centers for Disease Control and Prevention (CDC). The COVID-19 pandemic could also cause delays in acquiring new </p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;background:#ffffff;margin:0pt;">customers and executing renewals and could also impact our business as consumer behavior changes in response to the pandemic.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;padding-top:10.8pt;text-align:justify;background:#ffffff;margin:0pt;">Since the start of the second quarter of 2021, there has been increased availability and administration of vaccines against COVID-19, as well as an easing of restrictions on social, business, travel, and government activities and functions, including healthcare and elective surgeries, and we have experienced a gradual resumption of economic activities in our industries. On the other hand, infection rates continue to fluctuate in various regions and new strains of the virus, including the Delta variant, remain a risk, which may give rise to implementation of restrictions in the geographic areas that we serve. In addition, there are ongoing global impacts resulting from the pandemic, including disruption of the supply chains, product shortages, increased delivery costs, increased governmental regulation, strains on healthcare systems, and delays in shipments, product development, technology launches and facility access. </p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;padding-top:10.8pt;text-align:justify;background:#ffffff;margin:0pt;">We have been closely monitoring the COVID-19 pandemic and its impact on our business, including legislation to mitigate the impact of COVID-19 such as the Coronavirus Aid, Relief, and Economic Security (CARES) Act which was enacted in March 2020, and the American Rescue Plan Act of 2021 which was enacted in March 2021. Although a significant portion of our anticipated revenue for 2021 is derived from fixed-fee and minimum-guarantee arrangements, primarily from large, well-capitalized customers which we believe somewhat mitigates the risks to our business, our per-unit and variable-fee based revenue will continue to be susceptible to the volatility, supply chain disruptions, microchip shortages and potential market downturns induced by the COVID-19 pandemic.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;padding-top:10.8pt;text-align:justify;background:#ffffff;margin:0pt;">The full extent of the future impact of the COVID-19 pandemic on the Company’s operational and financial performance is uncertain and will depend on many factors outside the Company’s control, including, without limitation, the timing, extent, trajectory and duration of the pandemic; the availability, distribution and effectiveness of vaccines; the spread of new variants of COVID-19; the continued and renewed imposition of protective public safety measures; the impact of COVID-19 on integration of acquisitions, expansion plans, implementation of telemedicine, restrictions on elective procedures, delays in payor remittance and increased regulations; and the impact of the pandemic on the global economy and demand for consumer products. Although we are unable to predict the full impact and duration of the COVID-19 pandemic on our business, we are actively managing our financial expenditures in response to continued uncertainty. Further discussion of the potential impacts on our business from the COVID-19 pandemic is provided under Part I, Item 1A – Risk Factors of the Form 10-K<span style="color:#231f20;">. </span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;padding-top:10.8pt;text-align:justify;background:#ffffff;margin:0pt;"><span style="color:#231f20;visibility:hidden;">​</span></p>
CY2021 ionm Number Of Subsidiaries
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CY2021 us-gaap Stockholders Equity Reverse Stock Split
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During September 2021, the Company effectuated a five-for-one reverse stock split. All share, stock option and warrant information has been retroactively adjusted to reflect the stock split. See Note 11 for additional discussion.
CY2021 us-gaap Use Of Estimates
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<p style="font-family:'Times New Roman','Times','serif';font-size:10pt;font-style:italic;margin:0pt 0pt 12pt 0pt;"><span style="font-weight:bold;">Use of Estimates</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 12pt 0pt;">The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The accounting estimates and assumptions that require management’s most significant, difficult, and subjective judgment include the recognition and measurement of patient service fees, net, hospital, management and other revenue, the collectability of accounts receivable, the fair value measurements of goodwill and intangible assets, the assessment of the recoverability of goodwill, the assessment of useful lives and recoverability of intangible assets and long-lived assets, recognition and measurement of current and deferred income tax assets and liabilities, the assessment of unrecognized tax benefits, the valuation and recognition of stock-based compensation expense and business combinations, among others. Actual results experienced by the Company may differ from management’s estimates.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 12pt 0pt;">Revisions to accounting estimates are recognized in the period in which the estimate is revised and also in future periods when the revision affects both current and future periods. Significant assumptions, judgments, and estimates that management has made at the end of the reporting period that could result in a material adjustment to the carrying amounts of assets and liabilities in the event that actual results differ from assumptions made, relate to, but are not limited to, the following: patient service fees, net; hospital, management, and other revenue; accounts receivable; and due to/from related parties.</p>
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