Other Information.
+Added: Because we are filing this Quarterly Report on Form 10-Q within four business days after the triggering event, we are making the following disclosure under this Item 5 instead of filing a Current Report on Form 8-K under Item 1.02, Termination of a Material Definitive Agreement and Item 2.06, Material Impairments:
+Added: As previously disclosed, on October 15, 2018, we entered into a license agreement (the “License Agreement”) with Sun Scientific, Inc.
+Added: (“Sun Scientific”), pursuant to which we licensed certain intellectual property of Sun Scientific, including related to its Aero-Wrap product (what we refer to as the Airwear wrap), in the United States and Canada for use in all medical applications, including but not limited to swelling/edema and ulcers (including the lymphedema and chronic venous insufficiency conditions), but excluding the use of the intellectual property in the field of prophylaxis for deep vein thrombosis.
+Added: Sun Scientific terminated the License Agreement, effective July 31, 2020, pursuant to the early termination provisions contained in Section 2(k) and Section 6(b)(iv)(B) of the License Agreement, which permitted Sun Scientific to terminate the License Agreement if we had not had net sales of the licensed products of at least $150,000 within 18 months after the date of the License Agreement.
+Added: We did not incur any early termination penalties in connection with the early termination of the License Agreement.
+Added: As disclosed elsewhere in this report, in the second quarter of 2020, we reevaluated the Airwear wrap go-to market plan, and determined to focus our strategy on more advanced solutions within our core, long-standing Flexitouch and Entre franchises.
+Added: Accordingly, we made the strategic decision to discontinue the Airwear wrap in the second quarter of 2020.
+Added: Due to the planned discontinuation of the product line, we recorded a $4.0 million non-cash impairment charge to fully write-off the inventory and long-lived assets of the Airwear wrap in the quarter ended June 30, 2020.
+Added: The majority of the impairment charge was comprised of the intangible assets and property and equipment, totaling $3.6 million, and was classified within the reimbursement, general and administrative line of the Condensed Consolidated Statements of Operations.
+Added: The inventory-related component of the impairment charge was $0.4 million, and was classified within the cost of revenue line of the Condensed Consolidated Statements of Operations.
The exhibits filed as part of this Quarterly Report on Form 10-Q are set forth on the Exhibit Index below.
5 unchanged sentences
Amended and Restated By-laws, effective May 9, 2019
−Removed: Form of Non-Qualified Stock Option Agreement under 2016 Equity Incentive Plan (to be used for awards beginning in 2020)
−Removed: Form of Incentive Stock Option Agreement under 2016 Equity Incentive Plan (to be used for awards beginning in 2020)
−Removed: Form of Restricted Stock Unit Award Agreement under 2016 Equity Incentive Plan (to be used for awards beginning in 2020)
−Removed: Form of Performance Stock Unit Agreement under 2016 Equity Incentive Plan (to be used for awards beginning in 2020)
−Removed: Non-Employee Director Compensation Policy
+Added: Offer letter between Daniel L.
+Added: Reuvers and Tactile Systems Technology, Inc., dated May 20, 2020
Certification of Principal Executive Officer pursuant to Rule 13a-14(a) / 15d-14(a) of the Securities Exchange Act of 1934, as amended
4 unchanged sentences
§1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
−Removed: The following financial statements from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, formatted in Inline XBRL:
+Added: The following financial statements from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2020, formatted in Inline XBRL:
(i) Balance Sheets, (ii) Statements of Operations, (iii) Statements of Comprehensive (Loss) Income, (iv) Statements of Stockholders’ Equity, (v) Statements of Cash Flows, and (vi) Notes to the Condensed Consolidated Financial Statements
2 unchanged sentences
Tactile Systems Technology, Inc.
+Added: August 3, 2020
Chief Financial Officer
1 unchanged sentence
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.