2019 Q4 Form 10-Q Financial Statement

#000142545019000090 Filed on November 08, 2019

View on sec.gov

Income Statement

Concept 2019 Q4 2019 Q3 2018 Q4
Revenue $18.95M $20.74M $14.57M
YoY Change 30.09% 31.13% 24.72%
Cost Of Revenue $4.500M $4.849M $4.050M
YoY Change 11.11% 26.18% -54.14%
Gross Profit $14.45M $15.90M $10.51M
YoY Change 37.44% 32.71% 19.04%
Gross Profit Margin 76.25% 76.62% 72.17%
Selling, General & Admin $15.58M $16.04M $11.10M
YoY Change 40.36% 33.35% -8.26%
% of Gross Profit 107.82% 100.9% 105.57%
Research & Development $1.910M $1.396M $1.280M
YoY Change 49.22% 24.42% 36.17%
% of Gross Profit 13.22% 8.78% 12.17%
Depreciation & Amortization $1.410M $1.350M $710.0K
YoY Change 98.59% 73.08% 7.58%
% of Gross Profit 9.76% 8.49% 6.75%
Operating Expenses $17.48M $17.43M $12.38M
YoY Change 41.2% 32.59% -5.06%
Operating Profit -$3.031M -$1.539M -$1.866M
YoY Change 62.43% 31.31% -55.61%
Interest Expense -$1.310M -$1.300M -$530.0K
YoY Change 147.17% 113.11% -15.87%
% of Operating Profit
Other Income/Expense, Net $10.00K -$1.338M -$70.00K
YoY Change -114.29% 93.07% 600.0%
Pretax Income -$4.329M -$2.877M -$2.470M
YoY Change 75.26% 53.85% -49.07%
Income Tax $0.00
% Of Pretax Income
Net Earnings -$5.429M -$2.664M -$2.468M
YoY Change 119.98% 42.84% -49.06%
Net Earnings / Revenue -28.65% -12.84% -16.94%
Basic Earnings Per Share
Diluted Earnings Per Share -$361.0K -$181.7K -$189.7K
COMMON SHARES
Basic Shares Outstanding 14.97M shares 14.94M shares 12.81M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2019 Q4 2019 Q3 2018 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $70.80M $19.70M $60.70M
YoY Change 16.64% -19.59% 42.49%
Cash & Equivalents $70.78M $19.67M $60.69M
Short-Term Investments
Other Short-Term Assets $2.800M $39.80M $1.300M
YoY Change 115.38% 3880.0% 62.5%
Inventory $38.00M $34.53M $25.71M
Prepaid Expenses
Receivables $16.00M $14.18M $8.999M
Other Receivables $600.0K $500.0K $500.0K
Total Short-Term Assets $128.1M $108.7M $97.16M
YoY Change 31.81% 75.8% 39.67%
LONG-TERM ASSETS
Property, Plant & Equipment $21.35M $21.53M $12.77M
YoY Change 67.21% 68.56% 22.88%
Goodwill $13.77M $10.73M $0.00
YoY Change
Intangibles $2.181M
YoY Change -7.15%
Long-Term Investments
YoY Change
Other Assets
YoY Change
Total Long-Term Assets $54.10M $23.17M $2.181M
YoY Change 2380.33% 54.13% -82.88%
TOTAL ASSETS
Total Short-Term Assets $128.1M $108.7M $97.16M
Total Long-Term Assets $54.10M $23.17M $2.181M
Total Assets $182.2M $153.4M $112.1M
YoY Change 62.49% 99.57% 36.21%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $6.467M $7.746M $3.971M
YoY Change 62.86% 31.22% -27.73%
Accrued Expenses $4.300M $3.900M $3.600M
YoY Change 19.44% 18.18% 24.14%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $30.00M $0.00
YoY Change
Long-Term Debt Due $124.0K $30.12M $118.0K
YoY Change 5.08% 25646.15% 4.42%
Total Short-Term Liabilities $13.66M $46.18M $9.217M
YoY Change 48.24% 323.09% -2.64%
LONG-TERM LIABILITIES
Long-Term Debt $26.07M $21.09M $21.16M
YoY Change 23.21% -16.56% -16.51%
Other Long-Term Liabilities $63.00K $45.00K $0.00
YoY Change
Total Long-Term Liabilities $26.13M $21.14M $21.16M
YoY Change 23.51% -16.39% -16.51%
TOTAL LIABILITIES
Total Short-Term Liabilities $13.66M $46.18M $9.217M
Total Long-Term Liabilities $26.13M $21.14M $21.16M
Total Liabilities $39.79M $67.32M $30.37M
YoY Change 31.01% 86.0% -12.74%
SHAREHOLDERS EQUITY
Retained Earnings -$128.8M -$123.4M -$115.1M
YoY Change 11.93% 9.56% 0.0%
Common Stock $4.000K $4.000K $4.000K
YoY Change 0.0% 100.0% 100.0%
Preferred Stock
YoY Change
Treasury Stock (at cost) $0.00
YoY Change
Treasury Stock Shares 0.000 shares
Shareholders Equity $142.4M $86.11M $81.73M
YoY Change
Total Liabilities & Shareholders Equity $182.2M $153.4M $112.1M
YoY Change 62.49% 99.57% 36.21%

Cashflow Statement

Concept 2019 Q4 2019 Q3 2018 Q4
OPERATING ACTIVITIES
Net Income -$5.429M -$2.664M -$2.468M
YoY Change 119.98% 42.84% -49.06%
Depreciation, Depletion And Amortization $1.410M $1.350M $710.0K
YoY Change 98.59% 73.08% 7.58%
Cash From Operating Activities -$6.930M -$430.0K -$2.720M
YoY Change 154.78% -63.87% -18.32%
INVESTING ACTIVITIES
Capital Expenditures -$1.380M -$2.030M $50.00K
YoY Change -2860.0% 75.0% -104.0%
Acquisitions
YoY Change
Other Investing Activities -$150.0K $280.0K -$500.0K
YoY Change -70.0%
Cash From Investing Activities -$1.530M -$1.730M -$460.0K
YoY Change 232.61% 49.14% -63.2%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 59.97M 450.0K 39.42M
YoY Change 52.13% 50.0% -12.24%
NET CHANGE
Cash From Operating Activities -6.930M -430.0K -2.720M
Cash From Investing Activities -1.530M -1.730M -460.0K
Cash From Financing Activities 59.97M 450.0K 39.42M
Net Change In Cash 51.51M -1.710M 36.24M
YoY Change 42.14% -16.59% -10.16%
FREE CASH FLOW
Cash From Operating Activities -$6.930M -$430.0K -$2.720M
Capital Expenditures -$1.380M -$2.030M $50.00K
Free Cash Flow -$5.550M $1.600M -$2.770M
YoY Change 100.36% -5433.33% 33.17%

Facts In Submission

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us-gaap Net Income Loss
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CY2018Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2019Q3 us-gaap Cash And Cash Equivalents At Carrying Value Including Discontinued Operations
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19669000 USD
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us-gaap Interest Paid Net
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2232000 USD
us-gaap Interest Paid Net
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kids Transfer Of Property And Equipment To Inventory
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kids Transfer Of Property And Equipment To Inventory
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1061000 USD
us-gaap Stock Issued1
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us-gaap Stock Issued1
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us-gaap Nature Of Operations
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BUSINESS<div><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial';font-size:10pt;font-weight:400;line-height:120%;">OrthoPediatrics Corp., a Delaware corporation, is a medical device company committed to designing, developing and marketing anatomically appropriate implants and devices for children with orthopedic conditions, giving pediatric orthopedic surgeons and caregivers the ability to treat children with technologies specifically designed to meet their needs. We sell our specialized products, including PediLoc</span><sup style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial';font-size:6.5pt;font-weight:400;line-height:120%;vertical-align:top;">®</sup><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial';font-size:10pt;font-weight:400;line-height:120%;">, PediPlates</span><sup style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial';font-size:6.5pt;font-weight:400;line-height:120%;vertical-align:top;">®</sup><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial';font-size:10pt;font-weight:400;line-height:120%;">, Cannulated Screws, PediFlex</span><sup style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial';font-size:4.22pt;font-weight:400;line-height:120%;vertical-align:top;">TM</sup><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial';font-size:6.5pt;font-weight:400;line-height:120%;"> </span><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial';font-size:10pt;font-weight:400;line-height:120%;">nail, PediNail</span><sup style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial';font-size:4.22pt;font-weight:400;line-height:120%;vertical-align:top;">TM</sup><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial';font-size:10pt;font-weight:400;line-height:120%;">, PediLoc</span><sup style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial';font-size:6.5pt;font-weight:400;line-height:120%;vertical-align:top;">®</sup><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial';font-size:10pt;font-weight:400;line-height:120%;"> Tibia, ACL Reconstruction System, Locking Cannulated Blade, Locking Proximal Femur, Spica Tables, RESPONSE Spine, BandLoc, Pediguard, Pediatric Nailing Platform | Femur and Orthex, to various hospitals and medical facilities throughout the United States and various international markets. We currently use a contract manufacturing model for the manufacturing of implants and related surgical instrumentation. </span></div><div><span><br/></span></div><div><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial';font-size:10pt;font-weight:400;line-height:120%;">In 2017, we expanded operations and established legal entities in the United Kingdom, Australia and New Zealand permitting us to sell under an agency model direct to local hospitals in these countries. In September 2018, we further expanded operations in Canada selling direct to local hospitals, and in January 2019 we expanded to Belgium and the Netherlands. Additionally, in March 2019 we established a holding company and an operating company in the Netherlands that are expected to enhance our operations in Europe. </span></div><div><span><br/></span></div><div><span style="background-color:rgb(255,255,255, 0.0);color:#000000;font-family:'Arial';font-size:10pt;font-weight:400;line-height:120%;">On June 4, 2019, we purchased all the issued and outstanding shares of stock of Vilex in Tennessee, Inc. ("Vilex") and all the issued and outstanding units of membership interests in Orthex, LLC ("Orthex") for $60,000 in total consideration. Vilex and Orthex are primarily manufacturers of foot and ankle surgical implants, including cannulated screws, fusion devices, surgical staples and bone plates, as well as Orthex Hexapod technology which is used to treat pediatrics congenital deformities and limb length discrepancies. Because the current products of Vilex also include adult offerings that are not core to the Company's pediatrics business, the Company has begun taking steps to divest the non-core Vilex assets. The Company anticipates completing the divestiture by the end of 2019. </span></div>Our largest investor is Squadron Capital LLC (“Squadron”), a family office firm headquartered near Hartford, Connecticut.
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us-gaap Use Of Estimates
UseOfEstimates
Use of EstimatesPreparation of the condensed consolidated financial statements requires the use of estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, as of the date of the condensed consolidated financial statements. By their nature, these judgments are subject to an inherent degree of uncertainty. We use historical experience and other assumptions as the basis for our judgments and estimates. Because future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Any changes in these estimates will be reflected in the condensed consolidated financial statements.
us-gaap Impairment Of Intangible Assets Finitelived
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us-gaap Impairment Of Intangible Assets Finitelived
ImpairmentOfIntangibleAssetsFinitelived
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CY2019Q3 us-gaap Impairment Of Intangible Assets Finitelived
ImpairmentOfIntangibleAssetsFinitelived
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us-gaap Impairment Of Intangible Assets Indefinitelived Excluding Goodwill
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CY2019Q3 us-gaap Impairment Of Intangible Assets Indefinitelived Excluding Goodwill
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0 USD
us-gaap Impairment Of Intangible Assets Indefinitelived Excluding Goodwill
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CY2018Q3 us-gaap Impairment Of Intangible Assets Indefinitelived Excluding Goodwill
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us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
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CY2018Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
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0 shares
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
0 shares
CY2019Q2 us-gaap Business Acquisition Share Price
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40.76
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CY2019Q3 us-gaap Business Combination Acquisition Related Costs
BusinessCombinationAcquisitionRelatedCosts
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CY2019Q3 us-gaap Disposal Group Including Discontinued Operation Revenue
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us-gaap Disposal Group Including Discontinued Operation Revenue
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us-gaap Disposal Group Including Discontinued Operation Operating Expense
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365000 USD
us-gaap Income Tax Expense Benefit
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us-gaap Disposal Group Including Discontinued Operation Other Expense
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CY2019Q3 us-gaap Disposal Group Including Discontinued Operation Operating Income Loss
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213000 USD
us-gaap Disposal Group Including Discontinued Operation Operating Income Loss
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54000 USD
CY2019Q3 us-gaap Income Loss From Discontinued Operations Net Of Tax Attributable To Reporting Entity
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us-gaap Income Loss From Discontinued Operations Net Of Tax Attributable To Reporting Entity
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54000 USD
CY2019Q3 us-gaap Short Term Borrowings
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CY2019Q3 us-gaap Debt Longterm And Shortterm Combined Amount
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CY2018Q4 us-gaap Debt Longterm And Shortterm Combined Amount
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21274000 USD
CY2019Q3 us-gaap Long Term Debt Current
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us-gaap Interest Income Expense Net
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115000 USD
us-gaap Royalty Expense
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CY2019Q3 us-gaap Income Tax Expense Benefit
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us-gaap Income Tax Expense Benefit
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CY2018Q3 us-gaap Income Tax Expense Benefit
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CY2018Q3 us-gaap Income Tax Expense Benefit
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CY2019Q3 us-gaap Income Tax Expense Benefit
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us-gaap Income Tax Expense Benefit
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us-gaap Income Tax Expense Benefit
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0 USD
CY2018Q4 us-gaap Operating Loss Carryforwards
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335000 USD
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16200000 USD
CY2014Q2 kids Operating Loss Carryforwards Limitationson Use Estimated Amount Subjectto Limitation Annual Limit
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1062000 USD
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2302000 USD
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us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
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CY2019Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
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us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
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30.32
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29.98
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures And Expirations In Period
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us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures And Expirations In Period Weighted Average Exercise Price
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27.61
CY2019Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
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CY2019Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
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30.97
us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Outstanding Weighted Average Remaining Contractual Term2
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P1Y4M24D
CY2018Q4 us-gaap Class Of Warrant Or Right Outstanding
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CY2019Q3 us-gaap Class Of Warrant Or Right Outstanding
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CY2019Q3 us-gaap Net Income Loss Available To Common Stockholders Basic
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CY2018Q3 us-gaap Net Income Loss Available To Common Stockholders Basic
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us-gaap Net Income Loss Available To Common Stockholders Basic
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us-gaap Net Income Loss Available To Common Stockholders Basic
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CY2019Q3 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
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CY2018Q3 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
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12624858 shares
us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
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14487015 shares
us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
12417972 shares
CY2019Q3 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-0.18
CY2018Q3 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-0.15
us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-0.57
us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-0.77
us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
388534 shares
us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
307881 shares
us-gaap Number Of Reportable Segments
NumberOfReportableSegments
1 segment
us-gaap Number Of Operating Segments
NumberOfOperatingSegments
1 segment
CY2019Q3 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
20744000 USD
CY2018Q3 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
15820000 USD
us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
53600000 USD
us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
42991000 USD
CY2019Q3 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
20744000 USD
CY2018Q3 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
15820000 USD
us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
53600000 USD
us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
42991000 USD
CY2018Q1 us-gaap Defined Contribution Plan Employer Matching Contribution Percent
DefinedContributionPlanEmployerMatchingContributionPercent
0.03
CY2019Q3 us-gaap Lessee Operating Lease Term Of Contract
LesseeOperatingLeaseTermOfContract
P4Y
CY2019Q3 us-gaap Operating Lease Liability
OperatingLeaseLiability
69000 USD
CY2019Q3 us-gaap Operating Lease Right Of Use Asset
OperatingLeaseRightOfUseAsset
70000 USD
kids Researchand Development Arrangement Contractto Performfor Others Minimum Annual Royalty Payment
ResearchandDevelopmentArrangementContracttoPerformforOthersMinimumAnnualRoyaltyPayment
500000 USD

Files In Submission

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0001425450-19-000090.txt Edgar Link pending
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