IRADIMED CORP 10-K

ITEM 5. MARKET FOR REGISTRANT’S COMMON STOCK, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Market for Common Stock Our common stock has been publicly traded on the Nasdaq Capital Market under the stock symbol “IRMD” since July 16, 2014. Prior to that date, there was no public market for our common stock. There were no dividends declared during the fiscal years ended December 31, 2020, and 2019 and we do not anticipate paying any cash dividends on our common stock in the foreseeable future. The stock market in general has experienced significant stock price fluctuations in the past few years. In some cases, these fluctuations have been unrelated to the operating performance of the affected companies. Therefore, many companies have experienced dramatic volatility in the market prices of their common stock. We believe that a number of factors, both within and outside our control, could cause the price of our common stock to fluctuate, perhaps substantially. Factors such as the following could have a significant adverse impact on the market price of our common stock: ● Our financial position and results of operations; ● Our ability to obtain additional financing and, if available, the terms and conditions of the financing; ● Concern as to, or other evidence of, the reliability and efficiency of our proposed products or our competitors’ products; ● Announcements of innovations or new products by us or our competitors; ● Federal, state, and international governmental regulatory actions and the impact of such requirements on our business; ● The development of litigation against us; ● Period-to-period fluctuations in our operating results; ● Changes in estimates of our performance by any securities analysts; ● The issuance of new equity securities pursuant to a future offering or acquisition; ● Poorly executed acquisitions or acquisitions whose projected potential is not realized; ● Changes in interest rates; ● Competitive developments, including announcements by competitors of new products or significant contracts, acquisitions, strategic partnerships, joint ventures or capital commitments; ● Sales of large blocks of our stock; ● Investor perceptions of our company; and ● General economic and other national and international conditions. Stockholders As of February 28, 2021, we had 3 stockholders of record. This number is significantly less than and does not include “street name” or beneficial holders, whose shares are held by banks, brokers, financial institutions and other nominees. 42 Table of Contents Dividends At this time, we do not expect to declare or pay any cash dividends on our common stock in the foreseeable future, and we currently intend to retain future earnings, if any, to finance the expansion of our business. The decision whether to pay cash dividends on our common stock will be made by our board of directors, at its discretion, and will depend on our financial condition, operating results, capital requirements and other factors that the board of directors considers significant. We have never declared or paid cash dividends on our capital stock. Unregistered Sales of Securities; Use of Proceeds from Registered Securities None. Purchases of Equity Securities by the Issuer The following table provides information regarding repurchases of common stock for the year ended December 31, 2020. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Number Maximum ​ ​ ​ ​ ​ ​ ​ of Shares ​ Dollar Value of ​ ​ ​ ​ ​ ​ ​ Purchased as ​ Shares that ​ ​ Total ​ ​ ​ ​ Part of ​ May Yet ​ ​ Number of ​ ​ ​ ​ Publicly ​ Be Purchased ​ ​ Shares ​ Average Price ​ Announced ​ Under the ​ ​ Purchased ​ Paid per Share ​ Plans or ​ Plans or ​ ​ (1) ​ (2) ​ Programs ​ Programs January 1, 2020—January 31, 2020 5,323 ​ $ — — ​ $ — February 1, 2020—February 29, 2020 — ​ $ — — ​ $ — March 1, 2020—March 31, 2020 — ​ $ — — ​ $ — April 1, 2020—April 30, 2020 1,451 ​ $ — — ​ $ — May 1, 2020—May 31, 2020 30,732 ​ $ — — ​ $ — June 1, 2020—June 30, 2020 470 ​ $ — — ​ $ — July 1, 2020—July 31, 2020 2,674 ​ $ — — ​ $ — August 1, 2020—August 31, 2020 35 ​ $ — — ​ $ — September 1, 2020—September 30,2020 58 ​ $ — — ​ $ — October 1, 2020—October 31, 2020 187 ​ $ — — ​ $ — November 1, 2020—November 30, 2020 25 ​ $ — — ​ $ — December 1, 2020—December 31, 2020 11,362 ​ $ — — ​ $ — Total 52,317 ​ $ — — ​ $ — ​ (1) The number of shares purchased reflects shares withheld for taxes on vesting of restricted stock. There were no shares repurchased pursuant to the open market repurchase authorization. (2) The average price paid per share does not include the withheld shares discussed in (1). Transfer Agent The transfer agent and registrar for our common stock is EQ by Equiniti. Equity Compensation Plan Information Our equity compensation plan information is provided as set forth in Part III, Item 11 herein. Additional Information Copies of our annual reports, quarterly reports, current reports, and any amendments to those reports, are available free of charge on the Internet at www.sec.gov. All statements made in any of our filings, including all forward- 43 Table of Contents looking statements, are made as of the date of the document, in which the statement is included, and we do not assume or undertake any obligation to update any of those statements or documents unless we are required to do so by law. Stock Performance Graph The following information of Part II Item 5 is being furnished and shall not be deemed to be “soliciting material” or to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section, nor will it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except to the extent that we specifically incorporate such information by reference thereto. The following graph shows a comparison, from December 31, 2015 through December 31, 2020, of cumulative total return for our common stock, the Russell 2000 Index and the Nasdaq Medical Equipment Index. Such returns are based on historical results and are not intended to suggest future performance. Data for the Russell 2000 Index and the Nasdaq Medical Equipment Index assumes reinvestment of dividends. ​ ​ ITEM 6. SELECTED FINANCIAL DATA The following tables set forth certain selected financial data for each of the years in the five-year period ended December 31, 2020, and is derived from the audited Financial Statements of IRADIMED CORPORATION. The 44 Table of Contents statements of operations data for each of the years in the three-year period ended December 31, 2020 are included elsewhere in this report. The statements of operations data for the years ended December 31, 2017 and 2016 and balance sheet data as of December 31, 2018, 2017 and 2016 are derived from our audited financial statements not included in this report. The selected financial data set forth below is qualified in its entirety by, and should be read in conjunction with, the Financial Statements and Notes thereto and “Management’s Discussion and Analysis and Results of Operations” included elsewhere in this report. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years ended December 31, ​ 2020 2019 2018 2017 2016 Statements of Operations Data: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Revenue ​ $ 31,717,372 ​ $ 38,517,141 ​ $ 30,438,983 ​ $ 23,081,592 ​ $ 32,496,548 Cost of revenue ​ 8,142,962 ​ 8,816,161 ​ 7,211,633 ​ 5,569,896 ​ 6,154,836 Gross profit ​ 23,574,410 ​ 29,700,980 ​ 23,227,350 ​ 17,511,696 ​ 26,341,712 Operating expenses: ​ ​ ​ ​ ​ General and administrative ​ 12,269,079 ​ 10,451,266 ​ 8,710,882 ​ 9,001,164 ​ 8,795,703 Sales and marketing ​ 10,158,892 ​ 9,169,590 ​ 6,995,586 ​ 5,502,959 ​ 5,278,448 Research and development ​ 1,902,530 ​ 1,432,719 ​ 1,517,112 ​ 1,722,564 ​ 1,347,507 Total operating expenses ​ 24,330,501 ​ 21,053,575 ​ 17,223,580 ​ 16,226,687 ​ 15,421,658 (Loss) income from operations ​ (756,091) ​ 8,647,405 ​ 6,003,770 ​ 1,285,009 ​ 10,920,054 Other income, net ​ 139,213 ​ 395,912 ​ 193,537 ​ 111,377 ​ 32,680 (Loss) income before provision for income taxes ​ (616,878) ​ 9,043,317 ​ 6,197,307 ​ 1,396,386 ​ 10,952,734 Provision for income tax (benefit) expense ​ (1,985,879) ​ (587,642) ​ (106,143) ​ 896,622 ​ 3,738,189 Net income ​ $ 1,369,001 ​ $ 9,630,959 ​ $ 6,303,450 ​ $ 499,764 ​ $ 7,214,545 Net income per share: ​ ​ ​ ​ ​ Basic ​ $ 0.11 ​ $ 0.85 ​ $ 0.59 ​ $ 0.05 ​ $ 0.67 Diluted ​ $ 0.11 ​ $ 0.78 ​ $ 0.52 ​ $ 0.04 ​ $ 0.60 Weighted-average shares outstanding: ​ ​ ​ ​ ​ Basic ​ 12,123,556 ​ 11,282,214 ​ 10,758,752 ​ 10,638,858 ​ 10,818,427 Diluted ​ 12,440,086 ​ 12,276,444 ​ 12,110,117 ​ 11,720,316 ​ 11,989,681 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, ​ 2020 2019 2018 2017 2016 Balance Sheets Data: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 50,068,728 ​ $ 43,481,781 ​ $ 28,027,688 ​ $ 18,205,976 ​ $ 17,713,871 Investments ​ 1,909,368 ​ 2,768,287 ​ 6,349,915 ​ 8,135,123 ​ 7,965,521 Working capital ​ 58,818,629 ​ 53,104,709 ​ 39,852,197 ​ 31,029,638 ​ 30,194,520 Total assets ​ 71,066,620 ​ 66,728,864 ​ 48,442,258 ​ 39,012,534 ​ 37,194,484 Total stockholders’ equity ​ 61,384,612 ​ 55,524,395 ​ 41,945,733 ​ 32,930,877 ​ 31,889,125 ​ ​ ​ ​ 45 Table of Contents