0001104659-21-047574 | 20-F | XBRL Viewer

Leasehold improvements (in years)

10 or lease term if shorter

Equipment (in years)

Furniture, fixtures, fittings and other (in years)

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Document And Entity Information	12 Months Ended
Document And Entity Information	Dec. 31, 2020 shares
Document Information [Line Items]
Document Type	20-F
Document Registration Statement	false
Document Annual Report	true
Document Period End Date	Dec. 31, 2020
Document Transition Report	false
Document Shell Company Report	false
Entity File Number	000-29374
Entity Registrant Name	EDAP TMS SA
Entity Incorporation, State or Country Code	I0
Entity Address, Address Line One	Parc d’Activites la Poudrette-Lamartine
Entity Address, Address Line Two	4/6, rue du Dauphiné
Entity Address, Postal Zip Code	69120
Entity Address, City or Town	Vaulx-en-Velin
Entity Address, Country	FR
Entity Central Index Key	0001041934
Entity Common Stock, Shares Outstanding (in shares)	29,165,316
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Emerging Growth Company	false
Document Accounting Standard	U.S. GAAP
Entity Shell Company	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Amendment Flag	false
Business Contact
Document Information [Line Items]
Entity Address, Address Line One	Parc d’Activites la Poudrette-Lamartine
Entity Address, Address Line Two	4/6, rue du Dauphiné
Entity Address, Postal Zip Code	69120
Entity Address, City or Town	Vaulx-en-Velin
Entity Address, Country	FR
Contact Personnel Name	Ms. Blandine Confort
City Area Code	33
Local Phone Number	4 72 15 31 50
Contact Personnel Email Address	bconfort@edap-tms.com

CONSOLIDATED BALANCE SHEETS - EUR (€) € in Thousands	Dec. 31, 2020	Dec. 31, 2019
Current assets
Cash and cash equivalents	€ 24,696	€ 20,886
Current portion of net trade accounts and notes receivable	11,307	11,328
Other receivables	1,031	1,259
Inventories	7,989	8,178
Other assets, current portion	369	447
Total current assets	45,393	42,097
Non-current assets
Property and equipment, net	3,704	4,069
Operating lease right-of-use assets	1,895	2,647
Intangible assets, net	761	770
Goodwill	2,412	2,412
Deposits and other non-current assets	655	640
Deferred tax assets	374	432
Net Trade accounts and notes receivable, non-current		2
Total assets	55,193	53,068
Current liabilities
Trade accounts and notes payable	5,708	6,046
Deferred revenues, current portion	2,701	1,892
Social security and other payroll withholdings taxes	1,176	1,207
Employee absences compensation	698	634
Income taxes payable	129	280
Other accrued liabilities	2,774	2,109
Short-term borrowings	2,638	3,513
Current obligations under finance leases	344	392
Current portion of operating lease obligations	802	958
Current portion of long-term debt	4,532	462
Total current liabilities	21,504	17,493
Non-current liabilities
Deferred revenues, non-current	926	1,313
Obligations under finance leases	555	653
Operating lease obligations, non-current	1,099	1,726
Long-term debt, non-current	1,143	957
Other long-term liabilities	3,720	3,567
Total liabilities	28,945	25,710
Shareholders' equity
Common stock, 0.13 par value; 29,457,744 shares issued and 29,165,316 shares outstanding at December 31, 2020; 0.13 par value; 29,433,994 shares issued and 29,141,566 shares outstanding at December 31, 2019	3,830	3,826
Additional paid-in capital	66,548	66,331
Retained earnings	(40,139)	(38,435)
Cumulative other comprehensive loss	(3,064)	(3,436)
Treasury stock, at cost; 292,428 at December 31, 2020 and at December 31, 2019	(928)	(928)
Total shareholders' equity	26,248	27,359
Total liabilities and shareholders' equity	€ 55,193	€ 53,068

CONSOLIDATED BALANCE SHEETS (Parenthetical) - € / shares	Dec. 31, 2020	Dec. 31, 2019
CONSOLIDATED BALANCE SHEETS
Common stock, par value	€ 0.13	€ 0.13
Common stock, shares issued	29,457,744	29,433,994
Commons stock, shares outstanding	29,165,316	29,141,566
Treasury stock	292,428	292,428

CONSOLIDATED STATEMENTS OF INCOME (LOSS) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Revenues	€ 41,662	€ 44,912	€ 39,183
Cost of sales	(23,283)	(23,909)	(22,266)
Gross profit	18,379	21,002	16,917
Research and development expenses	(4,496)	(3,728)	(4,088)
Selling and marketing expenses	(9,279)	(10,850)	(10,551)
General and administrative expenses	(4,335)	(4,224)	(3,593)
Income (loss) from operations	269	2,201	(1,315)
Financial (expense) income, net	(98)	(146)	797
Foreign currency exchange gain (loss), net	(1,359)	136	538
Income (loss) before taxes	(1,188)	2,191	20
Total	(516)	(679)	(358)
Net income (loss)	€ (1,704)	€ 1,512	€ (338)
Basic income (loss) per share (in EUR per share)	€ (0.06)	€ 0.05	€ (0.01)
Diluted income (loss) per share (in EUR per share)	€ (0.06)	€ 0.05	€ (0.01)
Basic Weighted average shares outstanding (in shares)	29,148,108	29,016,118	28,997,866
Diluted Weighted average shares outstanding (in shares)	29,148,108	29,615,466	28,997,866
Product
Revenues	€ 41,649	€ 44,859	€ 39,163
Goods
Revenues	27,523	30,111	25,070
Cost of sales	(14,951)	(15,442)	(14,053)
RPP's and leases
Revenues	4,745	5,747	5,086
Cost of sales	(2,601)	(3,000)	(2,557)
Spare parts and services
Revenues	9,382	9,001	9,007
Cost of sales	(5,732)	(5,467)	(5,655)
Other revenues
Revenues	€ 12	€ 52	€ 19

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Net income (loss)	€ (1,704)	€ 1,512	€ (338)
Foreign currency translation adjustments	410	(61)	(146)
Provision for retirement indemnities	(38)	374
Comprehensive income (loss), net of tax	€ (1,332)	€ 1,825	€ (483)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY - EUR (€) € in Thousands	Common stock	Additional paid-in capital	Retained Earnings / (Loss)	Other comprehensive income (loss)	Treasury stock	Total
Balance at Dec. 31, 2017	€ 3,818	€ 65,694	€ (39,608)	€ (3,604)	€ (1,142)	€ 25,158
Balance (in shares) at Dec. 31, 2017	28,997,866
Net (loss) / income			(338)			(338)
Translation adjustment				(146)		(146)
Warrants and stock options granted or exercised		289				289
Balance (in shares) at Dec. 31, 2018	28,997,886
Balance at Dec. 31, 2018	€ 3,818	65,983	(39,947)	(3,748)	(1,142)	24,964
Net (loss) / income			1,512			1,512
Translation adjustment				(61)		(61)
Warrants and stock options granted or exercised		232				232
Capital increase	€ 8	116				124
Capital increase (in shares)	65,600
Treasury stock disposition					214	214
Treasury stock disposition (in shares)	78,100
Provision for retirement indemnities				374		374
Balance (in shares) at Dec. 31, 2019	29,141,566
Balance at Dec. 31, 2019	€ 3,826	66,331	(38,435)	(3,436)	(928)	27,359
Net (loss) / income			(1,704)			(1,704)
Translation adjustment				410		410
Warrants and stock options granted or exercised		160				160
Capital increase	€ 3	57				60
Capital increase (in shares)	23,750
Provision for retirement indemnities				(38)		(38)
Balance (in shares) at Dec. 31, 2020	29,165,316
Balance at Dec. 31, 2020	€ 3,830	€ 66,548	€ (40,139)	€ (3,064)	€ (928)	€ 26,248

CONSOLIDATED STATEMENTS OF CASH FLOWS - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities
Net income (loss)	€ (1,704)	€ 1,512	€ (338)
Adjustments to reconcile net income (loss) to net cash generated by (used in) operating activities:
Depreciation and amortization	2,105	1,879	1,610
Change in warrants fair value			(889)
Other non-cash compensation	160	260	289
Change in allowances for doubtful accounts & slow-moving inventories	734	176	591
Change in long-term provisions	455	(6)	300
Net capital loss on disposals of assets	291	79	37
Deferred tax expense (benefit)	45	(106)	(153)
Operating cash flow	2,087	3,794	1,447
Increase/Decrease in operating assets and liabilities:
Decrease (Increase) in trade accounts and notes and other receivables	1,137	908	(983)
Decrease (Increase) in inventories	(554)	(1,036)	(704)
Decrease (Increase) in other assets	69	(60)	115
(Decrease) Increase in trade accounts and notes payable	(422)	(249)	(70)
(Decrease) Increase in accrued expenses, other current liabilities	(339)	445	370
Net change in operating assets and liabilities	(110)	6	(1,272)
Net cash generated by (used in) operating activities	1,977	3,800	175
Cash flows from investing activities:
Additions to capitalized assets produced by the Company	(1,339)	(1,020)	(827)
Proceeds from sale of leased back assets			359
Acquisitions of property and equipment	(531)	(396)	(604)
Acquisitions of intangible assets	(103)	(35)	(438)
Acquisitions of other financial assets	(2)	(14)
Increase in deposits and guarantees	(36)	(67)	(59)
Net cash generated by (used in) investing activities	(2,011)	(1,532)	(1,569)
Cash flow from financing activities:
Proceeds from stock-option exercise	60	310
Proceeds from long term borrowings, net of financing costs	4,848	688	1,032
Repayment of long term borrowings	(519)	(1,087)	(443)
Repayment of obligations under financing leases in 2020 and 2019 and capital leases in 2018	(321)	(396)	(358)
Increase (decrease) in bank overdrafts and short-term borrowings	(867)	(179)	946
Net cash generated by (used in) financing activities	3,201	(664)	1,178
Net effect of exchange rate changes on cash and cash equivalents	642	(182)	(323)
Net increase (decrease) in cash and cash equivalents	3,810	1,422	(539)
Cash and cash equivalents at beginning of year	20,886	19,464	20,004
Cash and cash equivalents at end of year	€ 24,696	€ 20,886	€ 19,464

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2020

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

1-1 Nature of operations

EDAP TMS S.A. and its subsidiaries (‘‘the Company’’) are engaged in the development, production, marketing, distribution and maintenance of a portfolio of minimally-invasive medical devices for the treatment of urological diseases. The Company currently produces innovative robotic devices for treating stones of the urinary tract and localized prostate cancer. We also derive revenues from the distribution of urodynamics products and urology lasers. Net sales consist primarily of direct sales to hospitals and clinics in France and Europe, export sales to third-party distributors and agents, and export sales through subsidiaries based in Germany, Italy, the United States and Asia.

The Company purchases the majority of the components used in its products from a number of suppliers but for some components, relies on a single source. Delay would be caused if the supply of these components or other components was interrupted and these delays could be extended in certain situations where a component substitution may require regulatory approval. Failure to obtain adequate supplies of these components in a timely manner could have a material adverse effect on the Company’s business, financial position and results of operations.

Since the occurrence in 2020 of the COVID-19 virus, we have taken steps to require the majority of our employees to work remotely, maintain minimum supply chain and development activity and curtail most business travels. The pandemic has resulted in further postponement and/or cancelation of the sale and installation of new devices and disposables in hospitals or clinics as investment decisions are put on hold or their resources are refocused on COVID-19. During this period, we benefited from covid related assistance loans from French, Japanese and US authorities.

1-2 Basis of preparation

These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP).

1-3 Management estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles (‘‘U.S. GAAP’’) requires management to make estimates and assumptions, such as business plans, stock price volatility, duration of standard warranty per market, duration and interest rate of operating leases, price of maintenance contract used to determine the amount of revenue to be deferred and life duration of our range of products. These estimates and assumptions 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. In particular regarding the estimate of future sales in our business plans, the prolonged impact of the COVID19 pandemic and lack of visibility on the return to normal sales cycles has created a higher level of uncertainty. Actual results could differ from those estimates.

1-4 Consolidation

The accompanying consolidated financial statements include the accounts of EDAP TMS S.A. and all its domestic and foreign owned subsidiaries after elimination of intercompany balances and transactions. We do not have any significant interests in any variable interest entities.

1-5 Revenue recognition

The Company adopted ASC Topic 606, Revenue from Contracts with Customers, on January 1, 2018.

The Company’s revenue consists of:

- Sales of goods (devices and consumables), where invoicing generally takes place upon delivery. Consumables revenues included in sales contract are deferred until delivery.

- Revenue-per-Procedures (“RPP”) and leases: they comprise (i) revenues on a per treatment basis which are invoiced after each treatment, or in advance, or on a periodic basis, (ii) leases of devices, which are generally invoiced on a monthly or quarterly basis, and (iii) immaterial lease components arising from multiple-element arrangements, where specific sales terms are negotiated in accordance with each customer’s individual requirements and which are generally invoiced based on contract terms,

- Sales of spare parts and services (maintenance, upgrades, mobility and others). Spare parts are invoiced when delivered. Regarding services, invoicing is performed either on a subscription basis (in advance or at the end of the period) or when performed.

Sales of our medical devices and sales of disposables, sales of RPPs and leases, and sales of spare parts and services, are all net of commissions.

The Company invoices its customers based on the billing schedules in its sales arrangements. Payments are generally due between one to three months from date of invoice.

The Company accounts for a contract with a customer when there is a legally enforceable contract between the Company and its customer, the rights of the goods or services and their payment terms can be identified, the contract has commercial substance, collectability of the contract consideration is probable, it is approved and the parties are committed to their obligations.

Our sale arrangements may contain multiple elements, including device(s), consumables and services. For these multiple-element arrangements, the Company accounts for individual goods and services as separate performance obligations: (i) if a customer can benefit from the good or service on its own or with other resources that are readily available to the customer, and (ii) if they are a distinct good or service that is separately identifiable from other items in the multiple-element arrangement. The Company’s sale arrangements may include a combination of the following performance obligations: device(s), consumables, leases and services (such as, but not limited to, warranty extension).

For multiple-element arrangements, revenue is allocated to each performance obligation based on its relative standalone selling price. Standalone selling prices are based on observable prices at which the Company separately sells the goods or services. If a standalone selling price is not directly observable, then the Company estimates the standalone selling price considering market conditions and entity-specific factors including, but not limited to, features and functionality of the goods and services, geographies, and type of customer. The Company regularly reviews standalone selling prices and updates these estimates as necessary.

The Company recognizes revenue when the performance obligations are satisfied by transferring control over the goods or service to a customer.

The Company’s revenue consists of the following:

Sales of goods:

Sales of goods are and have historically been comprised of sales net of commission of medical devices (ESWL lithotripters and HIFU devices) and net sales of disposables (mostly Ablapaks and Focalpaks in the HIFU division and electrodes in the ESWL division). Sales of goods also includes products such as urology laser and urodynamics devices distributed through our agents and third-party distributors.

For devices and disposables, revenue is recognized when the Company transfers control to the customer (i.e. when the customer has the ability to direct the use of, and obtain substantially all of the remaining benefit from, the device or disposables), which is generally at the point of delivery or installation, depending on the terms of the arrangement (i.e. when the customer can use the goods to provide

services or sell or exchange the good), and based on contractual incoterms. Such installation-related costs are immaterial in the context of the contract with the customer and do not constitute a distinct performance obligation.

The Company’s sales arrangements do not provide a right of return. The goods are generally covered by a period of one to two years standard warranty upon installation depending of the geographic area. Over this standard one to two years period, it is considered as an extension of such warranty period and constitutes a distinct performance obligation. The Company also provides training associated with the sales of goods; such training-related costs are immaterial in the context of the contract with the customer and do not constitute a distinct performance obligation.

Sales of RPPs and leases:

Sales of RPP and leases include the revenues from the sale of treatment procedures and from the leasing of machines. For RPP, we provide machines to clinics and hospitals for free for a limited period, rather than selling the devices. These hospitals and clinics perform treatments using the devices and usually pay us based on the number of individual treatments provided. Revenues from leasing of machine are considered as immaterial.

Revenues related to the sale of treatments invoiced on a ‘‘Revenue-Per-Procedure’’ (‘‘RPP’’) basis are recognized when the treatment procedure has been completed. Revenues from devices leased to customers under operating leases are recognized on a straight-line basis.

Regarding multiple-element arrangements with a lease component, a portion of the contract is allocated to the lease component on the basis of observable market prices applied by the Company for similar devices under operating leases. The lease component is recognized on a straight line basis over the contractual period. Other immaterial components under the contract are recognized in accordance with their nature.

Sales of spare parts and services:

Revenues related to spare parts are recognized when spare parts are delivered to distributors who perform their own maintenance services. Spare parts used in the performance of EDAP’s own maintenance and repair services are generally not recognized separately, unless a type of spare part is specifically excluded from the maintenance contract terms.

Revenues related to Services mainly consist of maintenance contracts which rarely exceed one year and are recognized on a straight line basis over the term of the service period as the customer benefits from the service equally throughout the service contract period. For services rendered when no maintenance contract is in place or for services not included in the scope of a maintenance contract, revenues are recorded when services are performed.

The Company recognizes revenue for extended warranties included in the multiple-element arrangements as a separate performance obligation in Sales of services on a straight-line basis over the extended warranty period. In the majority of countries in which the Company operates, the statutory warranty period is one to two years and the extended warranty covers periods beyond this statutory period. Standard warranties do not constitute a separate performance obligation. The Company accrues for the warranty costs at the time of sale of the device through the multiple-element arrangement.

Agents and distributors:

As part of its sale process in countries other than continental France, when the Company does not have a local subsidiary, sales of goods to end-customers are performed through agents and distributors. Such agents and distributors are primarily responsible for the sales’ process, bear the inventory risk, and are free to determine the sale prices. Sales of goods to agents and distributors are recognized when the control is transferred to the related agent or distributor which generally occurs based on contractual incoterms.

Deferred revenue:

Deferred revenue for the periods presented primarily relates to service contracts where the service fees are billed up-front, generally quarterly or annually, prior to those services having been performed, and consists primarily of billing or cash receipts in advance of services due under maintenance contracts or extended warranty contracts. The associated deferred revenue is generally recognized ratably over the service period.

Disaggregation of revenue:

Disaggregation by primary geographical market, and timing of revenue recognition is reported in Note 18.

Contract Balances:

Details on contract liabilities are reported on Note 11.

The Company applies the practical expedient in paragraph 606-10-50-14 and does not disclose information about remaining performance obligations that have original expected durations of one year or less. This relates mainly to maintenance services.

1-6 Costs of sales

Costs of sales include all direct product costs, costs related to shipping, handling, duties and importation fees, as well as certain indirect costs such as service and supply chain departments expenses. Indirect costs are allocated by type of sales (goods, RPP and leases, spare parts and services) using an allocation method determined by management by type of costs and segment activities and reviewed on an annual basis.

1-7 Shipping and handling costs

Shipping and handling costs are not considered as performance obligations. Shipping and handling costs are recorded as a component of cost of sales.

1-8 Cash equivalents and short term investments

Cash equivalents are cash investments which are highly liquid and have initial maturities of 90 days or less.

Cash investments with a maturity higher than 90 days are considered as short-term investments. There is no short-term investment at December 31, 2020.

1-9 Accounts Receivable

The Company maintains an allowance for doubtful accounts for estimated losses inherent in its accounts receivable portfolio. In establishing the required allowance, management considers historical losses adjusted to take into account current market conditions and the Company’s customers’ financial condition, the amount of receivables in dispute, and the current receivables aging and current payment patterns. The Company reviews its allowance for doubtful accounts quarterly. Past due balances over 90 days and over a specified amount are reviewed individually for collectability. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Write-offs for 2020 and 2019 approximated €827 thousands and €15 thousands, respectively. The Company does not have any off-balance-sheet credit exposure related to its customers. 2020 write-offs are linked to the liquidation of the Italian’ subsidiary.

1-10 Inventories

Inventories are valued at the lower of cost and net realizable value. Cost is either the manufacturing cost, which is principally comprised of components and labor costs for our own manufactured products, or purchase price for urology products we distribute. Cost is determined on a first-in, first-out basis for components and spare parts and by specific identification for finished goods (medical

devices). The Company establishes reserves for inventory estimated to be obsolete, unmarketable or slow moving, first based on a detailed comparison between quantity in inventory and historical consumption and then based on case-by-case analysis of the difference between the cost of inventory and the related estimated market value.

1-11 Property and equipment

Property and equipment is stated at historical cost, net of accumulated depreciation and impairment. Depreciation of property and equipment is calculated using the straight-line method over the estimated useful life of the related assets, as follows:

Equipment includes industrial equipment and research equipment that has alternative future uses. Equipment also includes devices that are manufactured by the Company and leased to customers through operating leases related to Revenue-Per-Procedure transactions and devices subject to sale and leaseback transactions. This equipment is depreciated over a period of seven years.

1-12 Long-lived assets

The Company reviews the carrying value of its long-lived assets, including fixed assets and intangible assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be fully recoverable. Recoverability of long-lived assets is assessed by a comparison of the carrying amount of the assets (or the Group of assets, including the asset in question, that represents the lowest level of separately-identifiable cash flows) to the total estimated undiscounted cash flows expected to be generated by the asset or group of assets. If the future net undiscounted cash flows is less than the carrying amount of the asset or group of assets, the asset or group of assets is considered impaired and an expense is recognized equal to the amount required to reduce the carrying amount of the asset or group of assets to its then fair value. Fair value is determined by discounting the cash flows expected to be generated by the assets, when the quoted market prices are not available for the long-lived assets. Estimated future cash flows are based on assumptions and are subject to risk and uncertainty.

1-13 Goodwill and intangible assets

Goodwill represents the excess of purchase price over the fair value of identifiable net assets of businesses acquired. Goodwill is not amortized but instead tested annually for impairment or more frequently when events or change in circumstances indicate that the assets might be impaired.

When imparement indicators are identified, the impairment test is performed by comparing the fair value of a reporting unit with its carrying amount, including goodwill. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. For the purpose of any impairment test, the Company relies upon projections of future undiscounted cash flows and takes into account assumptions regarding the evolution of the market and its ability to successfully develop and commercialize its products.

Changes in market conditions could have a major impact on the valuation of these assets and could result in additional impairment losses.

Intangible assets consist primarily of purchased patents relating to lithotripters, purchased licenses, a purchased trade name and a purchased trademark. The basis for valuation of these assets is their historical acquisition cost. Amortization of intangible assets is calculated by the straight-line method over the shorter of the contractual or estimated useful life of the assets, as follows:


Patents (in years)		5
SAP Licenses (in years)		10
Other licenses (in years)		5
Trade name and trademark (in years)		7

1-14 Treasury Stocks

Treasury stock purchases are accounted for at cost. The sale of treasury stocks is accounted for using the first in first out method. Gains on the sale or retirement of treasury stocks are accounted for as additional paid-in capital whereas losses on the sale or retirement of treasury stock are recorded as additional paid-in capital to the extent that previous net gains from sale or retirement of treasury stocks are included therein; otherwise the losses shall be recorded to accumulated benefit (deficit) account. Gains or losses from the sale or retirement of treasury stock do not affect reported results of operations. Treasury stocks held by a Company cannot exceed 10% of the total number of shares issued.

1-15 Warranty expenses

The Company provides customers with a warranty for each product sold and accrues warranty expense at time of sale based upon historical claims experience. Standard warranty period may vary from 1 year to 2 years depending on the market. The warranty expense is incurred at time of accrual and not when paid. Warranty expense amounted to €266 thousand, €131 thousand and €433 thousand for the years ended December 31, 2020, 2019 and 2018, respectively.

1-16 Income taxes

The Company accounts for income taxes in accordance with ASC 740, ‘‘Accounting for Income Taxes’’ Under ASC 740, deferred tax assets and liabilities are determined based on differences between the financial reporting and tax basis of assets and liabilities and are measured by applying enacted tax rates and laws to taxable years in which such differences are expected to reverse. A valuation allowance is established if, based on the weight of available evidence, it is more likely than not that some portion, or all of the deferred tax assets, will not be realized. In accordance with ASC740, no provision has been made for income or withholding taxes on undistributed earnings of foreign subsidiaries, such undistributed earnings being permanently reinvested.

Under ASC740, the measurement of a tax position that meets the more-likely-that-not recognition threshold must take into consideration the amounts and probabilities of the outcomes that could be realized upon ultimate settlement using the facts, circumstances and information available at the reporting date.

1-17 Research and development costs

Research and development costs are recorded as an expense in the period in which they are incurred.

The French government provides tax credits to companies for innovative research and development. This tax credit is calculated based on a percentage of eligible research and development costs and it can be refundable in cash and is not contingent on future taxable income. As such, the Company considers the research tax credits as a grant, offsetting research and development expenses.

1-18 Advertising costs

Advertising costs are recorded as an expense in the period in which they are incurred and are included in selling and administrative expenses in the accompanying consolidated statements of income (loss). Advertising costs amounted to €291 thousand, €739 thousand and €719 thousand for the years ended December 31, 2020, 2019 and 2018, respectively.

1-19 Foreign currency translation and transactions

Translation of the financial statements of consolidated companies

The reporting currency of EDAP TMS S.A. for all years presented is the euro (€). The functional currency of each subsidiary is its local currency. In accordance with ASC 830, all accounts in the financial statements are translated into euro from the functional currency at the following exchange rates:

●

assets and liabilities are translated at year-end exchange rates;

●

shareholders’ equity is translated at historical exchange rates (as of the date of contribution);

●

statement of income (loss) items are translated at average exchange rates for the year; and

●

translation gains and losses are recorded in a separate component of shareholders’ equity.

Foreign currencies transactions

Transactions involving foreign currencies are translated into the functional currency using the exchange rate prevailing at the time of the transactions. Receivables and payables denominated in foreign currencies are translated at year-end exchange rates. The resulting unrealized exchange gains and losses are recorded in the statement of income (loss).

Presentation in the Statement of Income (loss)

Aggregate foreign currency transactions gains and losses are disclosed in a single caption in the Statement of Income (loss) under section “Foreign currency exchange gain (loss), net”.

1-20 Earnings per share

Basic earnings per share is computed by dividing income available to common shareholders by the weighted average number of shares of common stock outstanding for the period. Diluted earnings per share reflects potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. The dilutive effects of the Company’s common stock options and warrants is determined using the treasury stock method to measure the number of shares that are assumed to have been repurchased using the average market price during the period, which is converted from U.S. dollars at the average exchange rate for the period.

1-21 Derivative instruments

ASC 815 requires the Company to recognize all of its derivative instruments as either assets or liabilities in the statement of financial position at fair value. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, the Company must classify the hedging instrument, based upon the exposure being hedged, as fair value hedge, cash flow hedge or a hedge of a net investment in a foreign operation.

Gains and losses from derivative instruments are recorded in the Statement of Income (loss). As of December 31, 2020, there are no derivative instruments.

1-22 Employee stock option plans

At December 31, 2020, the Company had three stock-based employee compensation plans. ASC 718 requires the recognition of fair value of stock compensation as an expense in the calculation of net income (loss).

1-23 Warrants

The Company recorded outstanding warrants issued in March 2012, May 2013 and April 2016 as a liability. Pursuant to guidance of ASC 815-40-15-7(i), the Company determined that the said warrants could not be considered as being indexed to the Company’s own stock, on the basis that the exercise price of the warrants was determined in U.S. dollars while the functional currency of the Company is the Euro. Since December 31, 2018, there were no more warrants outstanding.

1-24 Leases

Leases as a Lessee

In accordance with ASC 842, Leases, and as from January 1, 2019, the Company classifies all leases at the inception of a contract and assess whether the contract is, or contains, a lease. The assessment is based on: (1) whether the contract involves the use of a distinct identified asset, (2) whether the company controls the use of the identified asset (e.g. whether the company has the right to obtain substantially all of the economic benefits from the use of the asset throughout the period, and whether the company has the right to direct the use of the asset).

Leases are classified as either finance leases or operating leases. Substantially all our operating leases are comprised of office space leases, and substantially all our finance leases are comprised of office furniture and technology equipment.

The Company recognizes a right-of-use (“ROU”) asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which primarily comprises the initial amount of the lease liability, plus any initial direct costs incurred, plus prepaid lease payments, less any lease incentives received. All ROU assets are reviewed for impairment. For operating leases, the lease liability is initially measured at the present value of the unpaid lease payments at lease commencement date, discounted using the incremental borrowing rate for assets of same duration or characteristics. For finance leases the lease liability is initially measured in the same manner and date as for operating leases and is subsequently measured at amortized cost using the effective interest method

For operating leases, the ROU asset is subsequently measured throughout the lease term at the carrying amount of the lease liability, plus initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of lease incentives received. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

For finance leases, the ROU asset is subsequently amortized using the straight-line method from the lease commencement date to the earlier of the end of its useful life or the end of the lease term unless the lease transfers ownership of the underlying asset to the Company or the Company is reasonably certain to exercise an option to purchase the underlying asset. In those cases, the ROU asset is amortized over the useful life of the underlying asset. Amortization of the ROU asset is recognized and presented separately from interest expense on the lease liability.

Lease payments included in the measurement of the lease liability comprise the following: the fixed payments, including in-substance fixed payments over the lease term (which includes termination penalties the Company would owe if the lease term assumes the Company’s exercise of a termination option), variable lease payments that depend on an index or ratepayments for optional renewal periods where it is reasonably certain the renewal period will be exercised, the exercise price of an option to purchase the underlying asset if the company is reasonably certain to exercise the option, and amounts expected to be paymable under a Company provided residual value guarantee. Documentation of the discount rates used is provided by a credit simulation carried out by the bank for similar goods and duration.

Variable lease payments associated with the Company’s leases are recognized when the event, activity, or circumstance in the lease agreement on which those payments are assessed occurs. Variable lease payments are presented as operating expenses in the Company’s consolidated statements of income in the same line item as expenses arising from fixed lease payments (operating leases) or amortization of the ROU asset (finance leases).

Our real estate leases generally include non-lease maintenance services. The consideration in the contract is allocated to the lease and non-lease components based on standalone selling prices.

Some of our real estate leases contain variable lease payments, including payments based on an index or rate. Variable lease payments based on an index or rate are initially measured using the index or rate in effect at lease commencement, and changes to index and rate-based variable lease payments are recognized in profit or loss in the period of the change. Variable payments that do not depend on an index or rate, such as rental payments based on the use of the underlying asset or property taxes and insurance reimbursement, are recorded as operating expense when incurred. Lease modifications result in remeasurement of the lease payments when that modification is not accounted for as a separate contract.

Lease expense for operating leases consists of the lease payments plus any initial direct costs, primarily brokerage commissions, and is recognized on a straight-line basis over the lease term. Included in lease expense are any variable lease payments incurred in the period that were not included in the initial lease liability. Lease expense for finance leases consists of the amortization of the right-of-use asset on a straight-line basis over the lease term and interest expense determined on an amortized cost basis. The lease payments are allocated between a reduction of the lease liability and interest expense.

The lease term for all of the Company’s leases includes the non-cancellable period of the lease plus any additional periods covered by either a Company option to extend (or not to terminate) the lease that the Company is reasonably certain to exercise, or an option to extend (or not to terminate) the lease controlled by the lessor .

We have elected not to recognize right-of-use assets and lease liabilities for short-term leases that have a term of 12 months or less. The effect of short-term leases on our right-of-use asset and lease liability was not material. We have elected not to review the classification for expired or existing leases, prior to January 1, 2019.

Leases as a Lessor:

A lessor shall classify a lease as a sales-type lease when the lease meets any of the following criteria at lease commencement:

●

The lease transfers ownership of the underlying asset to the lessee by the end of the lease term.

●

The lease grants the lessee an option to purchase the underlying asset that the lessee is reasonably certain to exercise.

●

The lease term is for the major part of the remaining economic life of the underlying asset. However, if the commencement date falls at or near the end of the economic life of the underlying asset, this criterion shall not be used for purposes of classifying the lease.

●

The present value of the sum of the lease payments and any residual value guaranteed by the lessee that is not already reflected in the lease payments in accordance with paragraph 842-10-30-5(f) equals or exceeds substantially all of the fair value of the underlying asset.

●

The underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term.

When none of the criteria are met:

A lessor shall classify the lease as either a direct financing lease or an operating lease. A lessor shall classify the lease as an operating lease unless both of the following criteria are met, in which case the lessor shall classify the lease as a direct financing lease:

●

The present value of the sum of the lease payments and any residual value guaranteed by the lessee that is not already reflected in the lease payments in accordance with paragraph 842-10-30-5(f) and/or any other third party unrelated to the lessor equals or exceeds substantially all of the fair value of the underlying asset;

●

It is probable that the lessor will collect the lease payments plus any amount necessary to satisfy a residual value guarantee.

1-25 Recent accounting pronouncements

Recently Adopted Accounting Pronouncements

In February 2016, the FASB issued ASU No. 2016-02, Leases (ASU 2016-02), which supersedes ASC 840 “Leases” and creates a new topic, ASC 842 "Leases." This update requires lessees to recognize on their balance sheet a lease liability and a lease asset

for all leases, including operating leases, with a term greater than 12 months. The update also expands the required quantitative and qualitative disclosures surrounding leases. This update is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years, with earlier application permitted. The Company adopted the new standard as of January 1, 2019. The Company performed an analysis of all contracts to identify lease components or rights of use. The Company determined that the new standard mostly applies to leases for facilities situated in France, Japan and in the U.S. and for Company’s equipment, vehicles and IT equipment. The last category has been determined as being below the threshold and not material.

The Company adopted ASC 842 using a modified retrospective transition approach for all leases existing at or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company adopted the new standard as of January 1, 2019 with practical expedients, and did not restate comparative prior periods. The adoption of ASC 842 had a material effect on our consolidated balance sheet, but did not materially affect the consolidated statement of income (loss). The most significant impact was the recognition of the operating lease right-of-use assets and the liability for operating leases. The accounting for finance leases (capital leases) was substantially unchanged. Accordingly, upon adoption, leases that were classified as operating leases under ASC 840 were classified as operating leases under ASC 842, and we recorded an adjustment of €3.5 million to operating lease right-of-use assets and the related lease liability in 2019. The lease liability is based on the present value of the remaining minimum lease payments, determined under ASC 840, discounted using our secured incremental borrowing rate at the effective date of January 1, 2019, using the original lease term as the tenor. As permitted under ASC 842, we elected several practical expedients that permit us to not reassess (1) whether a contract is or contains a lease, (2) the classification of existing leases, and (3) whether previously capitalized costs continue to qualify as initial indirect costs. The application of the practical expedients did not have a significant impact on the measurement of the operating lease liability. As a result, the Company adapted its internal controls to identify contracts and apply the new GAAP.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments, or ASU 2016-13, which changes the impairment model for most financial assets. This standard has been amended with codification improvements in ASU 2018-19, 2019-04, 2019-05, 2019-11. The new model uses a forward-looking expected loss method, which generally results in earlier recognition of allowances for losses. ASU 2016-13 was effective for annual and interim periods beginning after December 15, 2019 and early adoption was permitted for annual and interim periods beginning after December 15, 2018. The Company adopted ASU 2016-13 on January 1, 2020. The application of ASU 2016-3 did not have a significant impact on our accounts.

In January 2017, the FASB issued ASU 2017-04, “Intangibles - Goodwill and Other: Simplifying the Test for Goodwill Impairment.” This update eliminates step 2 from the goodwill impairment test, and requires the goodwill impairment test to be performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. This guidance was effective for the Company in the first quarter of 2020. Early adoption was permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The application of ASU 2016-3 did not have a significant impact on our accounts.

CASH EQUIVALENTS

12 Months Ended

Dec. 31, 2020

CASH EQUIVALENTS

CASH EQUIVALENTS

2— CASH EQUIVALENTS

Cash equivalents at December 31, 2020 and 2019 only comprise cash investments which are highly liquid and have initial maturities of 90 days or less.

TRADE ACCOUNTS AND NOTES RECEIVABLE, NET

12 Months Ended

Dec. 31, 2020

TRADE ACCOUNTS AND NOTES RECEIVABLE, NET

TRADE ACCOUNTS AND NOTES RECEIVABLE, NET

3— TRADE ACCOUNTS AND NOTES RECEIVABLE, NET

Trade accounts and notes receivable consist of the following:


	2020	2019
Trade accounts receivable	11,363	11,807
Notes receivable	667	1,013
Less: allowance for doubtful accounts	(722)	(1,490)
Total	11,307	11,330
Less current portion	(11,307)	(11,328)
Total long-term portion	—	2

Notes receivable usually represent commercial bills of exchange (drafts) with initial maturities of 90 days or less.

Bad debt expenses amount to a net cost of €87 thousand, a net cost of €84 thousand and €362 thousand, respectively for the years ended December 31, 2020, 2019 and 2018.

Long term portion consists of sales type leases of medical devices.

OTHER RECEIVABLES

12 Months Ended

Dec. 31, 2020

OTHER RECEIVABLES

OTHER RECEIVABLES

4— OTHER RECEIVABLES

Other receivables consist of the following:


	December 31,
	2020	2019
Research and development tax credit receivable from the French State	492	766
Value-added taxes receivable	403	422
Other receivables from Government and public authorities	64	26
Others	72	46
Total	1,031	1,259

INVENTORIES

12 Months Ended

Dec. 31, 2020

INVENTORIES

INVENTORIES

5— INVENTORIES


	December 31,
	2020	2019
Components, spare parts	6,050	4,959
Work-in-progress	226	584
Finished goods – own manufactured products	1,283	1,737
Finished goods – distribution products	1,994	1,981
Total gross inventories	9,552	9,262
Less: allowance for slow-moving inventory and net realizable value	(1,563)	(1,085)
Total	7,989	8,178

The provision for slow moving inventory relates to components and spare parts. The allowance for slow moving inventory (excluding exchange rate impact), the increases in which are classified within cost of sales, amounted to a cost of €651 thousand for the year ended December 31, 2020, a cost of €168 thousand for the year ended December 31, 2019, and a cost of €227 thousand for the year ended December 31, 2018, respectively.

OTHER ASSETS

12 Months Ended

Dec. 31, 2020

OTHER ASSETS

OTHER ASSETS

6— OTHER ASSETS

Other assets consist of the following:


	December 31,
	2020	2019
Prepaid expenses, current portion	369	447
Total	369	447

Prepaid expenses mainly consist of rental and future congresses and conferences expenses.

PROPERTY AND EQUIPMENT, NET

12 Months Ended

Dec. 31, 2020

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET

7— PROPERTY AND EQUIPMENT, NET

Property and equipment consist of Property and equipment purchased or capitalized by the Company and finance leases for 2020 and 2019.

7-1 Property and Equipment, net

Property and equipment consist of the following:


	2020	2019
Equipment	8,405	7,002
Furniture, fixture, and fittings and other	2,736	2,776
Total gross value	11,141	9,778
Less: accumulated depreciation and amortization	(8,142)	(6,644)
Total	3,000	3,134

Depreciation expense related to property and equipment amounted to €1,695 thousand, €1,511 thousand and €981 thousand for the years ended December 31, 2020, 2019 and 2018, respectively.

Assets leased to customers:

Capitalized costs on equipment leased to customers of €264 thousand and €342 thousand are included in property and equipment at December 31, 2020 and 2019, respectively. Accumulated amortization of these assets leased to third parties was €102 thousand and €95 thousand, at December 31, 2020 and 2019, respectively.

Depreciation expense on equipment leased to customer is included in total depreciation expense and amounted to €240 thousand, €23 thousand and €51 thousand, for the years ended December 31, 2020, 2019 and 2018, respectively.

7-2 Finance leases

Finance lease right-of-use assets in 2020 and previous years consist of the following:


	2020	2019
Equipment	359	713
Vehicles and IT equipment	1,196	1,582
Total gross value	1,554	2,295
Less: accumulated depreciation and amortization	850	1,360
Total	704	935

Depreciation expense related to finance lease right-of-use assets amounted to €401 thousand, €448 thousand and €386 for the years ended December 31, 2020, 2019, 2018, respectively.

The reduction to right-of-use assets resulting from reductions to finance lease obligations amounted €670 thousand and €122 thousand for the years ended December 31, 2020 and 2019 respectively.

OPERATING LEASE RIGHT-OF-USE ASSETS

12 Months Ended

Dec. 31, 2020

OPERATING LEASE RIGHT-OF-USE ASSETS

OPERATING LEASE RIGHT-OF-USE ASSETS

8— OPERATING LEASE RIGHT-OF-USE ASSETS

Operating lease right-of-use assets consist of the following:


	2020	2019
Facilities	1,584	2,387
Equipment	237	58
Furniture, fixture, and fittings and other	74	202
Total net operating lease right of use	1,895	2,647

The reduction to right-of-use assets resulting from reductions to operating lease obligations amounted to €931 thousand and €836 thousand for the years ended December 31, 2020 and 2019 respectively.

Variable lease costs related to above contracts amounted to €101 thousand and €108 thousand for the years ended December 31, 2020 and 2019 respectively.

Non-recognized lease liabilities for short term leases amounted to €71 thousand and €71 thousand for the years ended December 31, 2020 and 2019 respectively.

GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2020

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS

9— GOODWILL AND INTANGIBLE ASSETS

As discussed in Note 1-13, ASC 350 requires that goodwill not be amortized but instead be tested at least annually for impairment, or more frequently when events or change in circumstances indicate that the asset might be impaired, by comparing the carrying value to the fair value of the reporting unit to which they are assigned. The Company considers its ASC 280 operating segment — High Intensity Focused Ultrasound (HIFU), Urology Devices and Services (ESWL) and Distribution services (DIST) — to be its reporting units for purposes of testing for impairment. Goodwill amounts to €496 thousand for the ESWL division, 1,271 thousand for the DIST division and to €645 thousand for the HIFU division, at December 31, 2020.

Following the change of reporting segments in 2020, the previous UDS goodwill amount has been split between ESWL and Distribution according to the fair value of each segment measured at December 31, 2020.

The Company completed the required annual impairment test in the fourth quarter of 2020. To determine the fair value of the Company’s reporting units, the Company used the discounted cash flow approach for each of the three reportable units. In all three cases, the fair value of the reporting unit was in excess of the reporting unit’s book value, which resulted in no goodwill impairment.

Intangible assets consist of the following:


	2020	2019
Licenses	1,570	1,466
Trade name and trademark	412	427
Patents	412	412
Organization costs	225	320
Total gross value	2,619	2,625
Accumulated amortization for licenses	(813)	(699)
Accumulated amortization for trade name and trademark	(409)	(424)
Accumulated amortization for patents	(412)	(412)
Accumulated amortization for organization costs	(225)	(320)
Less: Total accumulated amortization	(1,858)	(1,855)
Total	761	770

Amortization expenses related to intangible assets amounted to €113 thousand, €113 thousand and €110 thousand, for the years ended December 31, 2020, 2019 and 2018, respectively.

For the five coming years, the annual estimated amortization expense will consist of the following:


		December 31,
		2020
2021		113
2022		106
2023		94
2024		87
2025		87
Total		488

TRADE ACCOUNTS AND NOTES PAYABLE

12 Months Ended

Dec. 31, 2020

TRADE ACCOUNTS AND NOTES PAYABLE

TRADE ACCOUNTS AND NOTES PAYABLE

10— TRADE ACCOUNTS AND NOTES PAYABLE

Trade accounts and notes payable consist of the following:


	2020	2019
Trade accounts payable	5,708	6,034
Notes payable	—	12
Total	5,708	6,046

Trade accounts payable usually represent invoices with a due date of 90 days or less and invoices to be received.

Notes payable represent commercial bills of exchange (drafts) with initial maturities of 90 days or less.

DEFERRED REVENUES

12 Months Ended

Dec. 31, 2020

DEFERRED REVENUES

DEFERRED REVENUES

11— DEFERRED REVENUES

Deferred revenues consist of the following:


	2020	2019
Deferred revenues on maintenance contracts	1,761	1,741
Deferred revenue on RPP	255	243
Deferred revenue on sale of devices	135	115
Deferred revenue on extension of warranty, included in sales contracts	782	837
Deferred research and development grants	693	269
Total	3,627	3,205
Less long term portion	(926)	(1,313)
Current portion	2,701	1,892

Deferred revenue on extension of warranty will be recognized over the following periods:


		December 31,
		2020
2021		300
2022		314
2023		143
2024		18
2025		8
Total		782

Changes in deferred revenue on extension of warranty are as follows:


		Total
Balance as of December 31, 2018		855
New extension of warranty		254
Recognition of revenue		(272)
Balance as of December 31, 2019		837
New extension of warranty		206
Recognition of revenue		(261)
Balance as of December 31, 2020		782

OTHER ACCRUED LIABILITIES

12 Months Ended

Dec. 31, 2020

OTHER ACCRUED LIABILITIES

OTHER ACCRUED LIABILITIES

12— OTHER ACCRUED LIABILITIES

Other accrued liabilities consist of the following:


	2020	2019
Retirement indemnities	2,665	2,444
Provision for warranty costs	368	370
Accruals for payroll and associated taxes	734	738
Conditional government advances	1,097	1,071
Value added tax payable	420	557
Advances received from customers	551	—
Provision for Asset Retirement Obligation (Japan)	113	117
Provision for employee termination indemnities (Korea)	69	56
Others	477	323
Total	6,494	5,676
Less non-current portion	(3,720)	(3,567)
Current portion	2,774	2,109

We receive government conditional advances and grants for advanced research programs we conduct alone or in connection with other unrelated entities (mainly HECAM project) which are provided for and managed by French state-owned entities, and specifically “Banque Publique d’Investissement” (“Bpifrance”). We, alone or with other unrelated entities, enter into multi-year contractual arrangements for the financing of specific research programs. These arrangements consist of both grants and conditional advances which are paid in fixed instalments at predetermined contractual dates, subject generally to milestones based on progress of the research and documentation. Grants received are non-refundable. Conditional advances received are subject to a fixed 1.44% interest rate.

Despite a first mono-centric study successfully implemented with Lyon’s Centre Leon Bérard cancer center, we decided not to pursue the development of HIFU for liver cancer as a per-operative approach. The multi-centric Phase II study, which was to be initiated following the mono-centric study, will not be implemented. We considered that the per-operative approach initially targeted will not offer the breakthrough innovation expected by the market and will lead to comparative lengthy clinical studies with existing therapeutic solutions to fulfill the requirement of the new European MDR regulations to become effective in May 2021.

In 2020, the Company decided to reorient the efforts, knowledge and assets resulting from the HECAM project in two directions. The first one, with a technology and approach very similar to the one developed for liver cancer, will focus on pancreatic cancer for patients with few or even no alternatives. The second one will still target liver cancer application but through an extracorporeal solution to offer to patients affected by primary or metastatic liver cancer an undisputable benefit compared to the existing alternatives. In 2021, the Company will discuss with BPI France whether the conditional advance may be repayable.

Grants that relate to expenses we incur for this research program are recognized in the line item “Research and Development Expenses” in the period in which the expenses subject to the grants have been incurred (see Note 20).

Conditional advances as of December 31, 2020 mature as follows, should the underlying Research Program advance as per contract:


2021		6
2022		214
2023		214
2024		214
2025 and thereafter		447
Total		1,097

Changes in the provision for warranty costs are as follows:


	2020	2019
Beginning of year	370	547
Amount used during the year	(268)	(308)
New warranty expenses	266	131
End of year	368	370
Less current portion	(262)	(260)
Long term portion	106	110

LEASE OBLIGATIONS

12 Months Ended

Dec. 31, 2020

LEASE OBLIGATIONS

LEASE OBLIGATIONS

13— LEASE OBLIGATIONS

13-1 Financing leases

The Company leases certain of its equipment under finance leases. At December 31, 2020, this equipment consists of medical devices for a liability amount of €223 thousand and vehicles and other IT equipment for a liability amount of €676 thousand.

Maturities of finance leases liabilities for the years ending December 31, 2020 are as follows:


		December 31,
		2020
2021		360
2022		280
2023		190
2024		72
2025 and thereafter		28
Total undiscounted minimum lease payments		930
Less: amount representing interest		(33)
Present value of minimum lease payments		899
Less: current portion		(344)
Long-term portion		555


		December 31,
		2019
2020		415
2021		299
2022		221
2023		122
2024 and thereafter		30
Total undiscounted minimum lease payments		1,086
Less: amount representing interest		(41)
Present value of minimum lease payments		1,044
Less: current portion		(392)
Long-term portion		653

Interest paid under finance lease obligations was €33and €29 thousand the years ended December 31, 2020 and 2019 respectively.

The weighted average remaining lease term and the weighted average discount rate for finance leases at December 31, 2020 was: 2.38 years and 3.06% and at December 31, 2019 was: 3.2 years and 2.44%.

13-2 Operating leases

Maturities of operating leases liabilities consist of the following amounts:


		December 31,
		2020
2021		803
2022		523
2023		381
2024		195
2025 and thereafter		—
Total undiscounted minimum lease payments		1,901
Less: current portion		(802)
Long-term portion		1,099


		December 31,
		2019
2020		980
2021		758
2022		474
2023		349
2024 and thereafter		171
Total undiscounted minimum lease payments		2,732
Less: amount representing interest		(48)
Present value of minimum lease payments		2,684
Less: current portion		(958)
Long-term portion		1,726

The weighted average remaining lease term and the weighted average discount rate for operating leases at December 31, 2020 was : 2.80 years and 1.45% and at December 31, 2019 was : 3.51 years and 1.56%.

Total rent expenses under operating leases amounted to €941 thousand, €828 thousand and €1,002 thousand, for the years ended December 31, 2020, 2019 and 2018, respectively. These total rent expenses are related to office rentals, office equipment and car rentals.

SHORT-TERM BORROWINGS

12 Months Ended

Dec. 31, 2020

SHORT-TERM BORROWINGS

SHORT-TERM BORROWINGS

14— SHORT-TERM BORROWINGS

As of December 31, 2020 short-term borrowings consist mainly of €2,638 thousand of factored account receivables and for which the Company maintains the effective control.

As of December 31, 2019 short-term borrowings consist mainly of €3,185 thousand of factored account receivables and for which the Company is bearing the collection risk and €328 thousand of short borrowing in Japan.

LONG TERM DEBT AND FINANCIAL INSTRUMENTS CARRIED AT FAIR VALUE

12 Months Ended

Dec. 31, 2020

LONG TERM DEBT AND FINANCIAL INSTRUMENTS CARRIED AT FAIR VALUE

LONG TERM DEBT AND FINANCIAL INSTRUMENTS CARRIED AT FAIR VALUE

15— LONG TERM DEBT AND FINANCIAL INSTRUMENTS CARRIED AT FAIR VALUE

15-1 Long-term debt:


	December 31,
	2020	2019
France term loan	4,394	351
Japanese term loan (YEN)	900	617
Germany term loan	193	438
USA term loan	180	—
Malaysia term loan	8	13
Total long term debt	5,675	1,420
Less current portion	(4,532)	(462)
Total long-term portion	1,143	957

As of December 31, 2020, long-term debt in Japan consists of two loans in Yen subscribed with the following conditions:


	Initial				Frequency of
	Amount	Maturity	Fixed Interest rate		principal payments
EDAP Technomed Co. Ltd	80,000,000	August 2, 2026	1.98	%	Monthly instalment
EDAP Technomed Co. Ltd	50,000,000	April 2, 2025	1.8	%	Monthly instalment

As of December 31, 2019, long-term debt in Japan consists of two loans in Yen with the following conditions :


	Initial				Frequency of
	Amount	Maturity	Fixed Interest rate		principal payments
EDAP Technomed Co. Ltd	80,000,000	August 2, 2026	1.98	%	Monthly instalment
EDAP Technomed Co. Ltd	40,000,000	April 15, 2020	2.91	%	Monthly instalment

The long-term debt of 40,000,000 has been fully reimbursed in April 2020.

As of December 31, 2020 , long-term debt in Germany consists of one loan in euro with the following conditions :


	Initial				Frequency of
	Amount	Maturity	Fixed Interest rate		principal payments
EDAP TMS GMBH	400,000	April 30, 2023	2.40	%	Monthly instalment

This loan was pledged against an HIFU equipment with a purchase value of €438 thousand.

As of December 31, 2019, long-term debt in Germany consists of this previous loan in euro and another loan with the following conditions :


	Initial				Frequency of
	Amount	Maturity	Fixed Interest rate		principal payments
EDAP TMS GMBH	136,500	December 31, 2022	2.25	%	Monthly instalment

This loan is pledged against a ESWL equipment with a purchase value of €136 thousand. This loan has been fully reimbursed in last quarter of 2020.


		Initial						Frequency of

		Amount		Maturity		Fixed Interest rate		principal payments
EDAP TMS GMBH		450,000		November 30, 2020		2.49	%	Monthly instalment

This loan was pledged against an HIFU equipment with a purchase value of €450 thousand, it has been fully reimbursed in November 2020.

As of December 31, 2020, long-term debt in France consists of a loan in Euro to finance the ERP project and three new loans in Euro subscribed in 2020 with the following conditions.


	Initial				Frequency of
	Amount	Maturity	Fixed Interest rate		principal payments
EDAP TMS FRANCE	700,000	October 16, 2021	0.40	%	Quarterly instalment

This loan is related to ERP SAP project. This four-year loan will be fully reimbursed in October 2021.


	Initial				Frequency of
	Amount	Maturity	Fixed Interest rate		principal payments
EDAP TMS FRANCE	218,000	April 1, 2025	0.99	%	Monthly instalment

This new loan is pledged against the countervalue in dollars on the loan. This loan constitutes a complete financial package of €1,530,000, of which €218,000 was drawn at the end of December to finance HIFU treatment probes.


	Initial				Frequency of
	Amount	Maturity	Fixed Interest rate		principal payments
EDAP TMS FRANCE	2,000,000	August 11, 2021	0.25	%	Monthly instalment

This new loan is COVID-related loan guaranteed by the French government with initially one year repayment term but which can be extended to five years (conditions not yet defined).


	Initial				Frequency of
	Amount	Maturity	Fixed Interest rate		principal payments
EDAP TMS FRANCE	2,000,000	August 4, 2021	0.25	%	Monthly instalment

This new loan is COVID-related loan guaranteed by the French government with initially one year repayment term but which can be extended to five years (conditions not yet defined).

As of December 31, 2019, long-term debt in France consists of one loan in Euro to finance the ERP (SAP) project with the following conditions :


	Initial				Frequency of
	Amount	Maturity	Fixed Interest rate		principal payments
EDAP TMS FRANCE	700,000	October 16, 2021	0.40	%	Quarterly instalment

As of December 31, 2020 and 2019, long-term debt in Malaysia consists of a loan in Ringgit with the following conditions:


		Initial						Frequency of

		Amount		Maturity		Fixed Interest rate		principal payments
EDAP TECHNOMED SDN BHD		90,000		July 31, 2022		4.64	%	Monthly instalment

As of December 31, 2020, long-term debt in USA consists of a loan in USD with the following conditions:


	Initial				Frequency of
	Amount	Maturity	Fixed Interest rate		principal payments
EDAP TECHNOMED INC	221,217	May 14, 2022	1	%	Monthly instalment

This loan has been received from the US Paycheck Protection Program and may be forgivable in the future if certain conditions are met.

15-2 Financial instruments carried at fair value:

As of December 31, 2020, there is no financial instruments such as warrants.

Refer to Note 26 for more details on the fair value of other Financial Instruments.

15-3 Long-term debt maturity:

Long-term debt carried at fair value at December 31, 2020 matures as follows:


2021		4,532
2022		504
2023		228
2024		200
2025 and thereafter		210
Total		5,675

OTHER LONG-TERM LIABILITIES

12 Months Ended

Dec. 31, 2020

OTHER LONG-TERM LIABILITIES

OTHER LONG-TERM LIABILITIES

16— OTHER LONG-TERM LIABILITIES

Other long-term liabilities consist of the following:


	2020	2019
Provision for retirement indemnities (Japan & France), less current portion	2,273	2,167
Provision for employee termination indemnities (Korea) less current portion	69	56
Provision for Asset Retirement Obligation (Japan) less current portion	113	117
Provision for warranty costs, less current portion	106	110
Conditional government advances, less current portion	1,097	1,071
Accrued interest less current portion	62	46
Total	3,720	3,567

Provision for asset retirement obligation in Japan is related to subsidiary’s offices and warehouses.

Pension, post-retirement and post-employment benefits for most of the Company’s employees are sponsored by European governments. In addition to government-sponsored plans, subsidiaries in Japan and France have defined benefit retirement indemnity plans in place. The provision for retirement indemnities at December 31, 2020 represents an accrual for lump-sum retirement indemnity payments to be paid at the time an employee retires if he or she is still present at the Company at the date of retirement. This provision has been calculated taking into account the estimated payment at retirement (discounted to the current date), turnover and salary increases.

The provision is management’s best estimate based on the following assumptions as of year-end :


	Pension benefits France
	2020		2019
Discount rate	0.60	%	0.90	%
Salary increase	2.50	%	2.50	%
Retirement age	65		65
Average retirement remaining service period	24		24


	Pension benefits Japan
	2020		2019
Discount rate	0.60	%	0.60	%
Salary increase	2.50	%	2.50	%
Retirement age	60		60
Average retirement remaining service period	14		14

The discount rate retained is determined by reference to the high quality rates for AA- rated corporate bonds for a duration equivalent to that of the obligations. It derives from a benchmark per monetary area of different market data at the closing date.

In 2020, provision presentation according to ASC 715 in thousands of euros :


	France	Japan
Non-current liabilities	1,032	1,241
Current liabilities	80	69
Accumulated other comprehensive income (loss)	(111)	(130)
Total	1,000	1,181

In 2019, provision presentation according to ASC 715 in thousands of euros:


	France	Japan
Non-current liabilities	960	1,207
Current liabilities	10	22
Accumulated other comprehensive income (loss)	(67)	(136)
Total	903	1,093

The Company does not have a funded benefit plan. Detailed reconciliation of pension cost components (in thousands of euros) during fiscal year for each of the three years ending December 31, 2020 is as follows :


France	2020	2019	2018
Change in benefit obligations:
Benefit obligations at beginning of year	969	976	895
Service cost	88	68	67
Interest cost	9	16	14
Net loss or (gain)	—	2	—
Actuarial (gain) or loss	45	(93)
Amortization of net prior service cost	1	1	1
Benefits paid	—	—	—
Benefit obligations at end of year ⁽¹⁾	1,111	969	976
Unrecognized actuarial (gain) loss ⁽²⁾	94	48	141
Unrecognized prior service cost ⁽²⁾	17	18	20
Accrued pension cost	1,000	903	815

(1)

The accumulated benefit obligation was €800 thousand and €693 thousand at December 31, 2020 and 2019 respectively.

(2)

The amount in accumulated other comprehensive income (loss) to be recognized as components of net periodic benefit costs in 2020 is €1 thousand.


Japan	2020	2019	2018
Change in benefit obligations:
Benefit obligations at beginning of year	1,230	1,311	1,182
Service cost	123	140	131
Interest cost	7	6	6
Amortization of net loss	1	27	26
Actuarial (gain) / loss	(1)	(294)	—
Benefits paid	(5)	(3)	(94)
Exchange rate impact	(44)	42	(60)
Benefit obligations at end of year⁽¹⁾	1,310	1,230	1,311
Unrecognized actuarial (gain) loss ⁽²⁾	130	136	416
Unrecognized prior service cost ⁽²⁾	—	—	—
Accrued pension cost	1,181	1,093	895

(1)

The accumulated benefit obligation was €1,134 thousand and €1,062 thousand at December 31, 2020 and 2019, respectively.

(2)

The amount in accumulated other comprehensive income (loss) to be recognized as components of net periodic benefit costs in 2020 is €1 thousand.

The benefits expected to be paid in each of the next five fiscal years, and in the aggregate for the five fiscal years thereafter, are detailed in the table below:


	France	Japan
2021	80	70
2022	—	105
2023	67	114
2024	—	157
2025	—	167
2026-2030	318	397
	465	1,008

SHAREHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2020

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY

17— SHAREHOLDERS’ EQUITY

17-1 Common stock

As of December 31, 2020, EDAP TMS S.A.’s common stock consisted of 29,457,744 issued shares fully paid and with a par value of €0.13 each. 29,165,316 of the shares were outstanding.

17-2 Pre-emptive subscription rights

Shareholders have preemptive rights to subscribe on a pro rata basis for additional shares issued by the Company for cash. Shareholders may waive such preemptive subscription rights at an extraordinary general meeting of shareholders under certain circumstances. Preemptive subscription rights, if not previously waived, are transferable during the subscription period relating to a particular offer of shares.

17-3 Dividend rights

Dividends may be distributed from the statutory retained earnings, subject to the requirements of French law and the Company’s by-laws. The Company has not distributed any dividends since its inception as the result of an accumulated statutory deficit of €16,172

thousand. Dividend distributions, if any, will be made in euros. The Company has no plans to distribute dividends in the foreseeable future.

17-4 Treasury stock

As of December 31, 2020, all 292,428 shares held as treasury stock consisted of (i) 112,138 shares acquired between August and December 1998 and (ii) 180,290 shares acquired in June and July 2001 for a total of €928 thousand. All treasury stocks have been acquired to cover stock purchase options (see Note 17-5).

17-5 Stock-option plans

As of December 31, 2020, the 292,428 ordinary shares held as treasury stock were dedicated to serve stock purchase option plans that may be allocated by the Board of Directors in the future, as per June 28, 2019 shareholders’ approval. The June 25, 2010 purchase option plan expired on June 25, 2020.

As of December 31, 2020, EDAP TMS S.A. sponsored three stock purchase and subscription option plans open to employees of EDAP TMS group:

On December 19, 2012, the shareholders authorized the Board of Directors to grant up to 500,000 options to subscribe to 500,000 new shares at a fixed price to be set by the Board of Directors. Conforming to this stock option plan, the Board of Directors granted 500,000 options to subscribe to new shares to certain employees of EDAP TMS on January 18, 2013. The exercise price was fixed at €1.91 per share. Options were to begin vesting one year after the date of grant and all options were fully vested as of January 18, 2017 (i.e., four years after the date of grant). Shares acquired pursuant to the options cannot be sold prior to four years from the date of grant. The options expire on January 18, 2023 (i.e., ten years after the date of grant) or when employment with the Company ceases, whichever occurs earlier. At December 31, 2013 the total fair value of the options granted under this plan was €660 thousand. This non-cash financial charge has been recognized in the Company’s operating expenses over a period of 48 months (using the graded vesting method). Under this plan, 262,500 options are outstanding and exercisable at December 31, 2020.

On February 18, 2016, the shareholders authorized the Board of Directors to grant up to 1,000,000 options to subscribe to 1,000,000 new shares at a fixed price to be set by the Board of Directors. Conforming to this stock option plan, the Board of Directors granted 575,000 options to subscribe to new shares to certain employees of EDAP TMS on April 26, 2016. The exercise price was fixed at €3.22 per share. Options were to begin vesting one year after the date of grant and all options were fully vested as of April 26, 2020 (i.e., four years after the date of grant). Shares acquired pursuant to the options cannot be sold prior to four years from the date of grant. The options expire on April 26, 2026 (i.e., ten years after the date of grant) or when employment with the Company ceases, whichever occurs earlier. At December 31, 2016 the total fair value of the options granted under this plan was €960 thousand. This non-cash financial charge has been recognized in the Company’s operating expenses over a period of 48 months (using the graded vesting method).

Conforming to this February 18, 2016 stock option plan, the Board of Directors granted 260,000 options to subscribe to new shares to certain employees of EDAP TMS on April 25, 2017. The exercise price was fixed at €2.39 per share. Options were to begin vesting one year after the date of grant and all options will be fully vested as of April 25, 2021 (i.e., four years after the date of grant). Shares acquired pursuant to the options cannot be sold prior to four years from the date of grant. The options expire on April 25, 2027 (i.e., ten years after the date of grant) or when employment with the Company ceases, whichever occurs earlier. At December 31, 2017, the total fair value of the options granted on April 25, 2017 under this plan was €335 thousand. This non-cash financial charge will be recognized in the Company’s operating expenses over a period of 48 months (using the graded vesting method).

Conforming to this February 18, 2016 stock option plan, the Board of Directors granted 165,000 options to subscribe to new shares to certain employees of EDAP TMS on August 29, 2018. The exercise price was fixed at €2.65 per share. Options were to begin vesting one year after the date of grant and all options will be fully vested as of August 29, 2022 (i.e., four years after the date of grant). Shares acquired pursuant to the options cannot be sold prior to four years from the date of grant. The options expire on August 29, 2029 (i.e., ten years after the date of grant) or when employment with the Company ceases, whichever occurs earlier. At December 31, 2018,

the total fair value of the options granted on August 29, 2018 under this plan was €219 thousand. This non-cash financial charge will be recognized in the Company’s operating expenses over a period of 48 months (using the graded vesting method).

Conforming to this February 18, 2016 stock option plan, the Board of Directors granted 155,000 options to subscribe to new shares to certain employees of EDAP TMS on April 4, 2019. Forfeited options corresponding to employees’ departures were re-allocated. The exercise price was fixed at €3.90 per share. Options were to begin vesting one year after the date of grant and all options will be fully vested as of April 4, 2023 (i.e., four years after the date of grant). Shares acquired pursuant to the options cannot be sold prior to four years from the date of grant. The options expire on April 4, 2029 (i.e., ten years after the date of grant) or when employment with the Company ceases, whichever occurs earlier. At December 31, 2019, the total fair value of the options granted on April 4, 2019 under this plan was €299 thousand. This non-cash financial charge will be recognized in the Company’s operating expenses over a period of 48 months (using the graded vesting method).

The impact of this February 18, 2016 Plan on operating income, in accordance with ASC 718, was €289 thousand, €260 thousand and €160 thousand in 2018, 2019 and 2020, respectively.

Under this 2016 plan, 924,400 options are outstanding, 708,150 options are exercisable and 13,750 options are exercised at December 31, 2020.

On June 28, 2019, the shareholders authorized the Board of Directors to grant up to a maximum of 358,528 options to purchase pre-existing shares and to grant 1,000,000 options to subscribe to 1,000,000 new shares at a fixed price to be set by the Board of Directors. As of December 31, 2020, 292,428 pre-existing shares are available for future purchase option grants and none of the options authorized under this Plan have been allocated.

Forfeited stock-options are recognized as they occur, in accordance with ASU 2016-09.

The fair value of each stock option granted during the year is estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions:


	2020		2019		2018
Weighted-average expected life (years)	—	⁽²⁾	6.25		6.25
Expected volatility rates⁽¹⁾	—		49.45	%	52.6	%
Expected dividend yield	—		0	%	0	%
Risk-free interest rate	—		(0.08)	%	0.18	%
Weighted-average exercise price (€)	—		3.90		2.65
Weighted-average fair value of options granted during the year (€)	—		1.93		1.33

(1)

^{Historical volatility calculated over 10} ^years.

(2)

^{There was no new plan for the} ^{year 2020.}

As of December 31, 2020, a summary of stock option activity to purchase or to subscribe to Shares under these plans is as follows:


	2020		2019		2018
		Weighted		Weighted		Weighted
		average		average		average
		exercice		exercice		exercice
	Options	price (€)	Options	price (€)	Options	price (€)
Outstanding on January 1,	1,273,900	2.78	1,347,600	2.61	1,207,600	2.61
Granted	—	—	155,000	3.90	165,000	2.65
Exercised	(23,750)	2.54	(143,700)	2.16	—	—
Forfeited	(21,250)	2.55	(85,000)	1.94	(25,000)	3.05
Expired	(42,000)	2.38	—	—	—	—
Outstanding on December 31,	1,186,900	2.81	1,273,900	2.78	1,347,600	2.61
Exercisable on December 31,	970,650	2.73	818,900	2.60	772,600	2.44
Share purchase options available for grant on December 31,	292,428		250,428		250,428

The following table summarizes information about options to purchase existing Shares held by the Company, or to subscribe to new Shares, at December 31, 2020:


	Outstanding options		Fully vested options ⁽¹⁾
		Weighted	Weighted			Weighted
		average	average	Aggregate		average	Aggregate
		remaining	exercise	Intrinsic		exercise	Intrinsic
		contractual	price	Value		price	Value
Exercise price (€)	Options	life	(€)	(2)	Options	(€)	(2)
3.90	130,000	8.8	3.90	42,576	32,500	3.90	13,017
3.22	465,000	5.3	3.22	468,492	465,000	3.22	468,492
2.65	145,000	7.7	2.65	228,739	72,500	2.65	114,369
2.39	184,400	6.3	2.39	338,837	138,150	2.39	253,852

1.91	262,500	2.0	1.91	608,346	262,500	1.91	608,346
1.91 to 3.90	1,186,900	6.0	2.81	1,686,989	970,650	2.73	1,458,076

(1)

Fully vested options are all exercisable options.

(2)

The aggregate intrinsic value represents the total pre-tax intrinsic value, based on the Company’s closing stock price of $5.17 at December 31, 2020, which would have been received by the option holders had all in-the-money option holders exercised their options as of that date.

A summary of the status of the non-vested options to purchase shares or to subscribe to new shares as of December 31, 2020, and changes during the three years ended December 31, 2020, is presented below:


		Weighted average
		Grant-Date Fair
	Options	Value (€)
Non-vested at January 1, 2018	593,750	1.53
Granted	165,000	1.33
Vested	(180,000)	1.56
Forfeited	(3,750)	1.29
Non-vested at December 31, 2018	575,000	1.47
Non-vested at January 1, 2019	575,000	1.47
Granted	155,000	1.93
Vested	(204,000)	1.52
Forfeited	(70,600)	1.58
Non-vested at December 31, 2019	455,000	1.58
Non-vested at January 1, 2020	455,000	1.58
Granted	0	0
Vested	(235,000)	1.58
Forfeited	(3,750)	1.54
Non-vested at December 31, 2020	216,250	1.59

As of December 31, 2020, there were €105 thousand of total unrecognized compensation expenses related to non-vested stock-options, over a period of 3.25 years.

17-6 Accumulated other comprehensive income (loss)

The components of accumulated other comprehensive income (loss) net of tax, for the years ended December 31, 2020, and 2019, are as follows:


	Year Ended December 31, 2020
	Foreign currency
	translation	Provision for
	adjustment	retirement indemnities	Total
Beginning balance	(3,234)	(203)	(3,436)
Other comprehensive income (loss) before reclassifications	—	—	—
Reclassified from accumulated other comprehensive loss	—	—	—
Net current-period other comprehensive income (loss)	410	(38)	372
Ending balance	(2,824)	(241)	(3,064)


	Year Ended December 31, 2019
	Foreign currency
	translation	Provision for
	adjustment	retirement indemnities	Total
Beginning balance	(3,173)	(577)	(3,748)
Other comprehensive income (loss) before reclassifications	—	—	—
Reclassified from accumulated other comprehensive loss	—	—	—
Net current-period other comprehensive income (loss)	(61)	374	313
Ending balance	(3,234)	(203)	(3,436)

As there is an allowance recorded against deferred tax assets, there is no net impact of tax.

TOTAL SALES

12 Months Ended

Dec. 31, 2020

TOTAL SALES

TOTAL SALES

18— TOTAL SALES

Amount of net sales derived from our operations in Asia, France, the United States. and other geographical areas, are as follows:


Primary geographical markets (€)	2020	2019	2018
Asia	15,872	17,939	14,119
France	10,021	11,350	11,577
United States	5,611	5,194	2,048
Others geographical areas	10,146	10,377	11,419
	41,649	44,859	39,163

The amount of net sales is recognized following the timing above:


Timing of revenue recognition	2020	2019	2018
Products transferred at a point in time	32,862	36,767	31,373
Products and services transferred over time	8,787	8,092	7,790
	41,649	44,859	39,163

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

OTHER REVENUES

12 Months Ended

Dec. 31, 2020

OTHER REVENUES

OTHER REVENUES

19— OTHER REVENUES

Other revenues consist of the following:

In 2020, 2019 and 2018, other revenues mainly consist of sales of a license to Theraclion and training to customers.

COSTS OF SALES

12 Months Ended

Dec. 31, 2020

COSTS OF SALES

COSTS OF SALES

20— COSTS OF SALES

Costs of sales consist of the following:


	2020	2019	2018
Direct costs of sales	(14,058)	(14,919)	(13,683)
Indirect costs of sales	(9,225)	(8,990)	(8,583)
Total costs of sales	(23,283)	(23,909)	(22,266)

RESEARCH AND DEVELOPMENT EXPENSES

12 Months Ended

Dec. 31, 2020

RESEARCH AND DEVELOPMENT EXPENSES

RESEARCH AND DEVELOPMENT EXPENSES

21— RESEARCH AND DEVELOPMENT EXPENSES

Research and development expenses consist of the following:


	2020	2019	2018
Gross research and development expenses	(5,173)	(4,727)	(4,863)
Research Tax Credit	492	762	685
Grants	184	236	90
Net Research and development expenses	(4,496)	(3,728)	(4,088)

In 2020 and 2019 grants consisted mainly of national grants for the assessment and optimization of the focal treatments of prostate cancer (Perfuse development project).

In 2018 grants mainly consisted of European, national and regional grants for the development of innovative imaging solutions for the focal treatment of liver cancer (HECAM Development project).

Research and development costs are expensed as incurred and include amortization of assets, costs of prototypes, salaries, benefits and other headcount related costs, contract and other outside service fees, and facilities and overhead costs.

FINANCIAL INCOME, NET

12 Months Ended

Dec. 31, 2020

FINANCIAL INCOME, NET

FINANCIAL INCOME, NET

22— FINANCIAL INCOME, NET

Interest (expense) income, net consists of the following:


	2020	2019	2018
Interest income	10	20	19
Interest expense	(108)	(165)	(111)
Warrants exercised / forfeited	—	—	889
Total	(98)	(146)	797

INCOME TAXES

12 Months Ended

Dec. 31, 2020

INCOME TAXES

INCOME TAXES

23— INCOME TAXES

23-1 Income / (Loss) before income taxes

Income / (loss) before income taxes is comprised of the following:


	2020	2019	2018
France	(2,042)	1,803	1,687
Other countries	854	388	(1,667)
Total	(1,188)	2,191	20

23-2 Income tax (expense)/ benefit

Income tax (expense)/benefit consists of the following :


	2020	2019	2018
Current income tax expense:
France	(158)	(237)	(163)
Other countries	(312)	(550)	(351)
Sub-total current income tax expense	(471)	(787)	(515)
Deferred income tax (expense) benefit:
France	8	(1)	2
Other countries	(53)	109	155
Sub-total deferred income tax (expense) benefit	(45)	108	157
Total	(516)	(679)	(358)

23-3 Deferred income taxes:

Deferred income taxes reflect the impact of temporary differences between the amounts of assets and liabilities reported for financial reporting purposes and such amounts as measured in accordance with tax laws. The tax effects of temporary differences which give rise to significant deferred tax assets (liabilities) are as follows by nature :


	2020	2019
Net operating loss carry forwards	14,014	13,642
Elimination of intercompany profit in inventory	161	269
Elimination of intercompany profit in fixed assets	244	349
Provisions for retirement indemnities	634	577
Capital leases treated as operating leases for tax	56	29
Other items	775	544
Total deferred tax assets	15,883	15,410
Total deferred tax liabilities	—	—
Net deferred tax assets	15,883	15,410
Valuation allowance for deferred tax assets	(15,508)	(14,977)
Deferred tax assets (liabilities), net of allowance	374	432

Net operating loss carryforwards available amounts to €59,052 thousand as of December 31, 2020, of which €34,225 thousand at EDAP TMS SA, €21,134 thousand at Edap Technomed Inc., €1,884 thousand at Edap Technomed Co Ltd Japan, €1,789 thousand at EDAP Technomed Italia S.R.L and €20 thousand at Edap TMS Gmbh. These net operating losses generate deferred tax assets of €14,014 thousand as at December 31, 2020. Realization of these tax assets is contingent on future taxable earnings in the applicable tax jurisdictions. As of December 31, 2020, €57,168 thousand out of these €59,052 thousand net operating loss carry-forwards have no expiration date but the amount of the net operating loss carry-forward, which can be used each year to offset taxable earnings, is limited in all jurisdictions. The remaining tax loss carry-forwards expire from years 2020 through 2030. In accordance with ASC 740, a valuation allowance is established if, based on the weight of available evidence, it is more-likely-than-not that some portion or all of the deferred tax asset will not be realized.

The 2017 U.S. Tax Act was enacted on December 22, 2017. The 2017 U.S. Tax Act includes a number of changes in existing tax law which impacted our business in the U.S. Starting with tax year 2018, the U.S. corporate tax rates changed from a graduated system ranging from 15% to 39% to a flat 21% of taxable net income. For taxable net income of $100K and greater for years 2018 and following, EDAP’s U.S. subsidiary would pay significantly lower taxes than with the previous tax law.

Starting from tax year 2019, the French corporate tax rates of taxable net income will gradually decrease from 28% to 25% in 2022.

23-4 Effective tax income (expense)

A reconciliation of differences between the statutory French income tax rate and the Company’s effective tax income (loss) is as follows:


	2020	2019	2018
Theoretical tax income / (loss) at French statutory tax rate	333	(614)	(6)
Income of foreign subsidiaries taxed at different tax rates	9	(51)	(124)
Effect of net operating loss carry-forwards and valuation allowances	(858)	189	(210)
Non-taxable debt fair value variation	—	—	235
Permanent differences	(159)	(251)	(392)
Effect of cancellation of intra-group positions	152	(54)	35
French business tax included in income tax (CVAE)	(156)	(159)	(161)
Other	164	263	265
Effective income (loss) tax	(516)	(679)	(358)

23-5 Uncertainty in Income Taxes

According to ASC 740, the Company reviewed the tax positions of each subsidiary. On December 31, 2020 the Company believes that there is no significant uncertainty in the Company’s tax positions.

The Company remains subject to examination by major tax jurisdictions.

Interest and penalties on income taxes are classified as a component of the provision for income taxes. There were no interest or penalties in 2020, 2019 and 2018.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

EARNINGS (LOSS) PER SHARE

12 Months Ended

Dec. 31, 2020

EARNINGS (LOSS) PER SHARE

EARNINGS (LOSS) PER SHARE

24— EARNINGS (LOSS) PER SHARE


	December 31, 2020		December 31, 2019		December 31, 2018
Income (loss) available to common shareholders (in Euros)	€	(1,703,668)	€	1,512,056	€	(338,382)
Number of shares for the computation of basic EPS		29,148,108		29,016,118		28,997,866
Basic EPS (in Euros)	€	(0.06)	€	0.05	€	(0.01)
Effect of dilutive securities		622,723		604,238		347,500
Number of shares for the computation of diluted EPS		29,148,108		29,615,466		28,997,866
Diluted EPS income / (loss) (in Euros)	€	(0.06)	€	0.05	€	(0.01)

Diluted EPS income / (loss) available to common shareholders is computed including all dilutive securities that are in the money.

The effects of dilutive securities for the years ended December 31, 2020 and 2018 were excluded from the calculation of diluted earnings per share as a net loss was reported in these periods.

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2020

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

25— COMMITMENTS AND CONTINGENCIES

25-1 Commitments

The Company currently has commitments regarding its operating leases as described in Note 12-2.

25-2 Contingencies

The Company currently has contingencies relating to warranties provided to customers for products as described in Note 1-15 and Note 11.

FAIR VALUE OF FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2020

FAIR VALUE OF FINANCIAL INSTRUMENTS

FAIR VALUE OF FINANCIAL INSTRUMENTS

26— FAIR VALUE OF FINANCIAL INSTRUMENTS

The following disclosure of the estimated fair value of financial instruments was made in accordance with the requirements of ASC 820 ‘‘Disclosure about fair value of financial instruments’’ and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value.

ASC 820 defines three levels of inputs that may be used to measure fair value and requires that the assets or liabilities carried at fair value be disclosed by the input level under which they were valued. The input levels are defined as follows:

Level 1: Quoted (unadjusted) prices in active markets for identical assets and liabilities that the reporting entity can access at the measurement date.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: Unobservable inputs for the asset or liability.


	ASC 820	December	December
	Level	31, 2020	31, 2019
Assets:
Cash and cash equivalents	Level 1	24,696	20,886
Liabilities:
Short-term borrowings	Level 1	2,638	3,513
Long-Term Debt	Level 1	5,675	1,420

The recorded amount of cash and cash equivalents and short-term borrowings are a reasonable estimate of their fair value due to the short-term maturities of these instruments.

The fair market value (Level 1 measurement) of the Company’s long-term debt is estimated using interest rate available to the Company in corresponding markets for debt with similar terms and maturities (see note 15-1 Long-term debt).

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

CONCENTRATION OF CREDIT RISK

12 Months Ended

Dec. 31, 2020

CONCENTRATION OF CREDIT RISK

CONCENTRATION OF CREDIT RISK

27— CONCENTRATION OF CREDIT RISK

Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash and cash equivalents and trade accounts and notes receivable from customers, primarily located in France, Japan and the United States. The Company maintains cash deposits with major banks. Management periodically assesses the financial condition of these institutions and believes that credit risk is limited.

The Company has implemented procedures to monitor the creditworthiness of its customers. The Company obtains bank guarantees for first time or infrequent customers, and in certain cases obtains insurance against the risk of a payment default by the customer. The Company reviewed individual customer balances considering current and historical loss experience and general economic conditions in determining the allowance for doubtful accounts receivable of €0.7 million and €1.5 million, for the years ended December 31, 2020 and 2019, respectively.

Actual losses may vary from the current estimates, and any adjustments are reported in earnings in the periods in which they become known.

In 2020, 2019 and 2018, the Company did not generate more than 10% revenue with a single customer.

FOREIGN CURRENCY TRANSACTIONS

12 Months Ended

Dec. 31, 2020

FOREIGN CURRENCY TRANSACTIONS

FOREIGN CURRENCY TRANSACTIONS

28— FOREIGN CURRENCY TRANSACTIONS

The Company generates a significant percentage of its revenues, and of its operating expenses, in currencies other than the euro. The Company’s operating profitability could be materially adversely affected by large fluctuations in the rate of exchange between the euro and such other currencies. The Company engages in foreign exchange hedging activities when it deems necessary, but there can be no assurance that hedging activities will be offset by the impact of movements in exchange rates on the Company’s results of operations. As of December 31, 2020, there were no outstanding hedging instruments.

SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2020

SEGMENT INFORMATION

SEGMENT INFORMATION

29— SEGMENT INFORMATION

We recently implemented organizational changes in our structure and realigned our activity into three divisions: HIFU, ESWL (including lithotripsy activities) and Distribution to better reflect how we view our businesses and how we measure our progress. Through these three divisions, we develop, produce, market and distribute minimally invasive medical devices, mainly for urological diseases. HIFU division includes sales of Focal One, Ablatherm and related consumables and services, ESWL division includes revenues generated by the existing Sonolith range of lithotripters and, Distribution division includes the sale of complimentary products such as lasers, micro-ultrasound systems and other products from third parties.

The organization of our activities into three divisions better clarified our vision and enhanced our financial reporting of our three businesses HIFU, ESWL and Distribution. This new structure also allows for an improved measurement of our business progress.

The business in which the Company operates is the development, production and distribution of minimally invasive medical devices, primarily for the treatment of urological diseases. Substantially all revenues result from the sale of medical devices and their related license and royalty payments from third parties. The segments derive their revenues from this activity.

The following tables set forth the key Statement of income (loss) figures, by segment for fiscal years 2020, 2019 and 2018 and the key balance sheet figures, by segment, for fiscal years 2020, 2019 and 2018. Segment operating profit or loss and segment assets are determined in accordance with the same policies as those described in the summary of significant accounting policies and they are reviewed by the CODM, who is the CEO. Interest income and expense, current and deferred income taxes are not allocated to individual segments. A reconciliation of segment operating profit or loss to consolidated net loss is as follows:


	2020	2019	2018
Segment operating income (loss)	269	2,201	(1,315)
Financial income (expense), net	(98)	(146)	797
Foreign Currency exchange (losses) gains, net	(1,359)	136	538
Income tax (expense) credit	(516)	(679)	(358)
Consolidated net profit (loss)	(1,704)	1,512	(338)

A summary of the Company’s operations by segment is presented below for years ending December 31, 2020, 2019 and 2018:


	HIFU	ESWL	DISTRIB	Reconciling	Total
2020	Division	Division	Division	Items	consolidated
Sales of goods	6,000	6,248	15,274		27,523
Sales of RPPs & leases	3,594	927	224		4,745
Sales of spare parts and services	1,831	5,707	1,844		9,382
Total sales	11,425	12,882	17,342		41,649
External other revenues	12	—	—		12
Total revenues	11,438	12,882	17,342		41,662
Total COS	(5,144)	(7,232)	(10,906)		(23,283)
Gross profit	6,293	5,649	6,436		18,379
R&D expenses	(2,583)	(1,555)	(358)		(4,496)
Selling and marketing expenses	(3,151)	(2,052)	(4,076)		(9,279)
G&A expenses	(1,005)	(964)	(900)	(1,465)	(4,335)
Total expenses	(6,738)	(4,572)	(5,335)	(1,465)	(18,110)
Operating income (loss) from operations	(445)	1,078	1,102	(1,465)	269
Total Assets	16,279	15,567	20,795	2,551	55,193
Capital expenditures	1,144	309	557	—	2,011
Non-current assets	3,706	2,466	3,628	—	9,801
Goodwill	645	496	1,271	—	2,412


	HIFU	ESWL	DISTRIB	Reconciling	Total
2019	Division	Division	Division	Items	consolidated
Sales of goods	8,311	6,715	15,084	—	30,111
Sales of RPPs & leases	4,162	1,426	158	—	5,747
Sales of spare parts and services	1,618	6,048	1,335	—	9,001
Total sales	14,092	14,190	16,578	—	44,859
External other revenues	52	—	—	—	52
Total revenues	14,144	14,190	16,578	—	44,912
Total COS	(6,152)	(7,816)	(9,941)	—	(23,909)
Gross profit	7,991	6,374	6,637	—	21,002
R&D expenses	(1,962)	(1,394)	(372)	—	(3,728)
Selling and marketing expenses	(4,402)	(2,441)	(4,008)	—	(10,850)
G&A expenses	(1,168)	(904)	(854)	—	(4,224)
Total expenses	(7,533)	(4,738)	(5,233)	—	(18,802)
Operating income (loss) from operations	459	1,635	1,404	—	2,201
Total Assets	16,665	15,892	16,500	4,012	53,068
Capital expenditures	915	298	319	—	1,532
Non-current assets	4,096	4,448	2,427	—	10,971
Goodwill	645	450	1,317	—	2,412


	HIFU	ESWL	DISTRIB	Reconciling	Total
2018	Division	Division	Division	Items	consolidated
Sales of goods	5,494	7,069	12,505	—	25,070
Sales of RPPs & leases	3,750	1,254	82	—	5,086
Sales of spare parts and services	1,780	6,157	1,070	—	9,007
Total sales	11,025	14,480	13,657	—	39,163
External other revenues	19	—	—	—	19
Total revenues	11,044	14,480	13,657	—	39,183
Total COS	(5,312)	(8,178)	(8,775)	—	(22,266)
Gross profit	5,732	6,302	4,882	—	16,917
R&D expenses	(2,394)	(1,410)	(285)	—	(4,088)
Selling and marketing expenses	(4,628)	(2,357)	(3,566)	—	(10,551)
G&A expenses	(1,036)	(731)	(580)	(1,247)	(3,593)
Total expenses	(8,057)	(4,498)	(4,431)	(1,247)	(18,232)
Operating income (loss) from operations	(2,325)	1,804	451	(1,247)	(1,316)
Total Assets	13,648	16,700	13,149	5,243	48,740
Capital expenditures	1,154	451	324	—	1,928
Non-current assets	2,855	3,697	1,462	—	8,013
Goodwill	645	403	1,364	—	2,412

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
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-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

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-Topic 280
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-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

+ Details

VALUATION ACCOUNTS

12 Months Ended

Dec. 31, 2020

VALUATION ACCOUNTS

VALUATION ACCOUNTS

30— VALUATION ACCOUNTS


	Allowance	Allowance
	for deferred	for doubtful	Slow-moving	Warranty
	tax assets	accounts	inventory	reserve
Balance as of December 31, 2017	14,266	1,029	723	449
Charges to costs and expenses	515	365	355	433
Deductions: write-off and others	(228)	10	(104)	(334)
Balance as of December 31, 2018	14,553	1,404	974	548
Charges to costs and expenses	859	94	333	131
Deductions: write-off and others	(435)	(9)	(223)	(308)
Balance as of December 31, 2019	14,977	1,490	1,085	370
Charges to costs and expenses	596	90	651	266
Deductions: write-off and others	(65)	(858)	(172)	(268)
Balance as of December 31, 2020	15,508	722	1,563	368

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

12 Months Ended

Dec. 31, 2020

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

31— SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

Interest and income taxes paid are as follows:


Non-cash transactions:	2020	2019	2018
Financing lease obligations incurred	192	203	427
Operating lease obligations incurred	317	3,483	—

Cash paid for amounts included in the measurement of lease liabilities:


		2020
Operating cash flow used in operating leases		941
Operating cash flow used in finance leases		18
Financing cash flow used in finance leases		321

RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2020

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

32— RELATED PARTY TRANSACTIONS

On August 19, 2019, EDAP Technomed Co. Ltd. (Japan) contracted a loan amounting 80,000,000 JPY. As a current practice in Japan, this loan required a personal warranty from the representative director, president and CEO of the subsidiary Mr. Jean-François Bachelard. EDAP TMS S.A., as the parent company, counter-warranted this personal loan and agreed to indemnify Mr. Bachelard, in an indemnification letter dated September 12, 2019 expiring upon loan maturity date of August 26, 2026.

On March 27, 2019, EDAP Technomed Sdn Bdh (Malaysia) contracted with Maybank to establish a fixed deposit amounting 65,464.85 MYR. As a current practice in Malaysia, any fixed deposit requires a personal warranty from the representative director, president and CEO of the subsidiary Mr. Hervé de Soultrait. EDAP TMS S.A., as the parent company, counter-warranted this deposit and agreed to indemnify Mr. de Soultrait, in an indemnification letter dated September 13, 2019, which expired upon loan maturity date of March 27, 2020.

On August 2, 2019, EDAP Technomed Inc. contracted a car lease amounting $28,756.44. This lease required a personal warranty from the president of the subsidiary Mr. Marc Oczachowski. EDAP TMS S.A., as the parent company, counter-warranted this personal lease warranty and agreed to indemnify Mr. Marc Oczachowski, in an indemnification letter dated July 1, 2019, expiring upon car lease maturity date of July 2, 2022.

On April 22, 2020, EDAP Technomed Co. Ltd (Japan) contracted another loan amounting 50,000,000 JPY requiring a personal warranty from the representative director, president and CEO of the subsidiary Mr. Jean-François Bachelard. EDAP TMS S.A., as the parent company, counter-warranted this personal loan and agreed to indemnify Mr. Bachelard, in an indemnification letter dated June 2, 2020, expiring upon loan maturity date of April 2, 2025.

On September 2, 2020, a consulting agreement was established between Mr. Philippe Chauveau, Chairman of the Board of the Company up to June 23, 2020 (date of expiration of his mandate as a Director) and the Company. As per this agreement, Mr. Chauveau, is to provide Mr. Oczachowski, new Chairman of the Board, with advice and recommendations on various subjects related to the Company’s activity and strategic projects. This consulting agreement can be terminated at any time with 30 days notice. For the period ending 2020, the Company paid €6,000 under this contract.

SUBSEQUENT EVENTS

12 Months Ended

Dec. 31, 2020

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

33— SUBSEQUENT EVENTS

N/A

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2020

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of operations

1-1 Nature of operations

Basis of preparation

1-2 Basis of preparation

These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP).

Management estimates

1-3 Management estimates

Consolidation

1-4 Consolidation

Revenue recognition

1-5 Revenue recognition

The Company adopted ASC Topic 606, Revenue from Contracts with Customers, on January 1, 2018.

The Company’s revenue consists of:

- Sales of goods (devices and consumables), where invoicing generally takes place upon delivery. Consumables revenues included in sales contract are deferred until delivery.

Sales of our medical devices and sales of disposables, sales of RPPs and leases, and sales of spare parts and services, are all net of commissions.

The Company invoices its customers based on the billing schedules in its sales arrangements. Payments are generally due between one to three months from date of invoice.

The Company recognizes revenue when the performance obligations are satisfied by transferring control over the goods or service to a customer.

The Company’s revenue consists of the following:

Sales of goods:

Sales of RPPs and leases:

Sales of spare parts and services:

Agents and distributors:

Deferred revenue:

Disaggregation of revenue:

Disaggregation by primary geographical market, and timing of revenue recognition is reported in Note 18.

Contract Balances:

Details on contract liabilities are reported on Note 11.

Costs of sales

1-6 Costs of sales

Shipping and handling costs

1-7 Shipping and handling costs

Shipping and handling costs are not considered as performance obligations. Shipping and handling costs are recorded as a component of cost of sales.

Cash equivalents and short term investments

1-8 Cash equivalents and short term investments

Cash equivalents are cash investments which are highly liquid and have initial maturities of 90 days or less.

Cash investments with a maturity higher than 90 days are considered as short-term investments. There is no short-term investment at December 31, 2020.

Accounts Receivable

1-9 Accounts Receivable

Inventories

1-10 Inventories

Property and equipment

1-11 Property and equipment

Long-lived assets

1-12 Long-lived assets

Goodwill and intangible assets

1-13 Goodwill and intangible assets

Changes in market conditions could have a major impact on the valuation of these assets and could result in additional impairment losses.


Patents (in years)		5
SAP Licenses (in years)		10
Other licenses (in years)		5
Trade name and trademark (in years)		7

Treasury Stocks

1-14 Treasury Stocks

Warranty expenses

1-15 Warranty expenses

Income taxes

1-16 Income taxes

Research and development costs

1-17 Research and development costs

Research and development costs are recorded as an expense in the period in which they are incurred.

Advertising costs

1-18 Advertising costs

Foreign currency translation and transactions

1-19 Foreign currency translation and transactions

Translation of the financial statements of consolidated companies

●

assets and liabilities are translated at year-end exchange rates;

●

shareholders’ equity is translated at historical exchange rates (as of the date of contribution);

●

statement of income (loss) items are translated at average exchange rates for the year; and

●

translation gains and losses are recorded in a separate component of shareholders’ equity.

Foreign currencies transactions

Presentation in the Statement of Income (loss)

Aggregate foreign currency transactions gains and losses are disclosed in a single caption in the Statement of Income (loss) under section “Foreign currency exchange gain (loss), net”.

Earnings per share

1-20 Earnings per share

Derivative instruments

1-21 Derivative instruments

Gains and losses from derivative instruments are recorded in the Statement of Income (loss). As of December 31, 2020, there are no derivative instruments.

Employee stock option plans

1-22 Employee stock option plans

Warrants

1-23 Warrants

Leases

1-24 Leases

Leases as a Lessee

Our real estate leases generally include non-lease maintenance services. The consideration in the contract is allocated to the lease and non-lease components based on standalone selling prices.

Leases as a Lessor:

A lessor shall classify a lease as a sales-type lease when the lease meets any of the following criteria at lease commencement:

●

The lease transfers ownership of the underlying asset to the lessee by the end of the lease term.

●

The lease grants the lessee an option to purchase the underlying asset that the lessee is reasonably certain to exercise.

●

The underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term.

When none of the criteria are met:

●

The present value of the sum of the lease payments and any residual value guaranteed by the lessee that is not already reflected in the lease payments in accordance with paragraph 842-10-30-5(f) and/or any other third party unrelated to the lessor equals or exceeds substantially all of the fair value of the underlying asset;

●

It is probable that the lessor will collect the lease payments plus any amount necessary to satisfy a residual value guarantee.

Recent accounting pronouncements

1-25 Recent accounting pronouncements

Recently Adopted Accounting Pronouncements

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2020

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Schedule of depreciation of property and equipment is estimated useful life of the related assets

Schedule of amortization of intangible assets is contractual or estimated useful life of the assets


Patents (in years)		5
SAP Licenses (in years)		10
Other licenses (in years)		5
Trade name and trademark (in years)		7

TRADE ACCOUNTS AND NOTES RECEIVABLE, NET (Tables)

12 Months Ended

Dec. 31, 2020

TRADE ACCOUNTS AND NOTES RECEIVABLE, NET

Schedule of trade accounts and notes receivable


	2020	2019
Trade accounts receivable	11,363	11,807
Notes receivable	667	1,013
Less: allowance for doubtful accounts	(722)	(1,490)
Total	11,307	11,330
Less current portion	(11,307)	(11,328)
Total long-term portion	—	2

OTHER RECEIVABLES (Tables)

12 Months Ended

Dec. 31, 2020

OTHER RECEIVABLES

Schedule of other receivables


	December 31,
	2020	2019
Research and development tax credit receivable from the French State	492	766
Value-added taxes receivable	403	422
Other receivables from Government and public authorities	64	26
Others	72	46
Total	1,031	1,259

INVENTORIES (Tables)

12 Months Ended

Dec. 31, 2020

INVENTORIES

Schedule of Inventory, Current


	December 31,
	2020	2019
Components, spare parts	6,050	4,959
Work-in-progress	226	584
Finished goods – own manufactured products	1,283	1,737
Finished goods – distribution products	1,994	1,981
Total gross inventories	9,552	9,262
Less: allowance for slow-moving inventory and net realizable value	(1,563)	(1,085)
Total	7,989	8,178

OTHER ASSETS (Tables)

12 Months Ended

Dec. 31, 2020

OTHER ASSETS

Schedule of other assets


	December 31,
	2020	2019
Prepaid expenses, current portion	369	447
Total	369	447

PROPERTY AND EQUIPMENT, NET (Tables)

12 Months Ended

Dec. 31, 2020

PROPERTY AND EQUIPMENT, NET

Schedule of Property and equipment


	2020	2019
Equipment	8,405	7,002
Furniture, fixture, and fittings and other	2,736	2,776
Total gross value	11,141	9,778
Less: accumulated depreciation and amortization	(8,142)	(6,644)
Total	3,000	3,134

Schedule of Finance lease right-of-use assets


	2020	2019
Equipment	359	713
Vehicles and IT equipment	1,196	1,582
Total gross value	1,554	2,295
Less: accumulated depreciation and amortization	850	1,360
Total	704	935

OPERATING LEASE RIGHT-OF-USE ASSETS (Tables)

12 Months Ended

Dec. 31, 2020

OPERATING LEASE RIGHT-OF-USE ASSETS

Schedule of Operating lease right-of-use assets


	2020	2019
Facilities	1,584	2,387
Equipment	237	58
Furniture, fixture, and fittings and other	74	202
Total net operating lease right of use	1,895	2,647

GOODWILL AND INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 31, 2020

GOODWILL AND INTANGIBLE ASSETS

Schedule of Intangible assets


	2020	2019
Licenses	1,570	1,466
Trade name and trademark	412	427
Patents	412	412
Organization costs	225	320
Total gross value	2,619	2,625
Accumulated amortization for licenses	(813)	(699)
Accumulated amortization for trade name and trademark	(409)	(424)
Accumulated amortization for patents	(412)	(412)
Accumulated amortization for organization costs	(225)	(320)
Less: Total accumulated amortization	(1,858)	(1,855)
Total	761	770

Schedule of Intangible assets, annual estimated amortization expense


		December 31,
		2020
2021		113
2022		106
2023		94
2024		87
2025		87
Total		488

TRADE ACCOUNTS AND NOTES PAYABLE (Tables)

12 Months Ended

Dec. 31, 2020

TRADE ACCOUNTS AND NOTES PAYABLE

Schedule of Accounts Payable and Accrued Liabilities


	2020	2019
Trade accounts payable	5,708	6,034
Notes payable	—	12
Total	5,708	6,046

DEFERRED REVENUES (Tables)

12 Months Ended

Dec. 31, 2020

DEFERRED REVENUES

Schedule of Deferred revenues


	2020	2019
Deferred revenues on maintenance contracts	1,761	1,741
Deferred revenue on RPP	255	243
Deferred revenue on sale of devices	135	115
Deferred revenue on extension of warranty, included in sales contracts	782	837
Deferred research and development grants	693	269
Total	3,627	3,205
Less long term portion	(926)	(1,313)
Current portion	2,701	1,892

Schedule of Deferred revenue on extension of warranty


		December 31,
		2020
2021		300
2022		314
2023		143
2024		18
2025		8
Total		782

Components of deferred revenue on extension of warranty


		Total
Balance as of December 31, 2018		855
New extension of warranty		254
Recognition of revenue		(272)
Balance as of December 31, 2019		837
New extension of warranty		206
Recognition of revenue		(261)
Balance as of December 31, 2020		782

OTHER ACCRUED LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2020

OTHER ACCRUED LIABILITIES

Schedule of Other Accrued Liabilities


	2020	2019
Retirement indemnities	2,665	2,444
Provision for warranty costs	368	370
Accruals for payroll and associated taxes	734	738
Conditional government advances	1,097	1,071
Value added tax payable	420	557
Advances received from customers	551	—
Provision for Asset Retirement Obligation (Japan)	113	117
Provision for employee termination indemnities (Korea)	69	56
Others	477	323
Total	6,494	5,676
Less non-current portion	(3,720)	(3,567)
Current portion	2,774	2,109

Schedule of Conditional Advances


2021		6
2022		214
2023		214
2024		214
2025 and thereafter		447
Total		1,097

Schedule of Changes is the Provision for Warranty Costs


	2020	2019
Beginning of year	370	547
Amount used during the year	(268)	(308)
New warranty expenses	266	131
End of year	368	370
Less current portion	(262)	(260)
Long term portion	106	110

LEASE OBLIGATIONS (Tables)

12 Months Ended

Dec. 31, 2020

LEASE OBLIGATIONS

Schedule of Maturities of Finance Leases Liabilities


		December 31,
		2020
2021		360
2022		280
2023		190
2024		72
2025 and thereafter		28
Total undiscounted minimum lease payments		930
Less: amount representing interest		(33)
Present value of minimum lease payments		899
Less: current portion		(344)
Long-term portion		555

Schedule of Maturities of Operating Leases Liabilities


		December 31,
		2020
2021		803
2022		523
2023		381
2024		195
2025 and thereafter		—
Total undiscounted minimum lease payments		1,901
Less: current portion		(802)
Long-term portion		1,099

LONG TERM DEBT AND FINANCIAL INSTRUMENTS CARRIED AT FAIR VALUE (Tables)

12 Months Ended

Dec. 31, 2020

LONG TERM DEBT AND FINANCIAL INSTRUMENTS CARRIED AT FAIR VALUE

Schedule of Long-term Debt


	December 31,
	2020	2019
France term loan	4,394	351
Japanese term loan (YEN)	900	617
Germany term loan	193	438
USA term loan	180	—
Malaysia term loan	8	13
Total long term debt	5,675	1,420
Less current portion	(4,532)	(462)
Total long-term portion	1,143	957

Schedule of Long-term Debt Instruments


	Initial				Frequency of
	Amount	Maturity	Fixed Interest rate		principal payments
EDAP Technomed Co. Ltd	80,000,000	August 2, 2026	1.98	%	Monthly instalment
EDAP Technomed Co. Ltd	50,000,000	April 2, 2025	1.8	%	Monthly instalment


	Initial				Frequency of
	Amount	Maturity	Fixed Interest rate		principal payments
EDAP Technomed Co. Ltd	80,000,000	August 2, 2026	1.98	%	Monthly instalment
EDAP Technomed Co. Ltd	40,000,000	April 15, 2020	2.91	%	Monthly instalment


	Initial				Frequency of
	Amount	Maturity	Fixed Interest rate		principal payments
EDAP TMS GMBH	400,000	April 30, 2023	2.40	%	Monthly instalment


	Initial				Frequency of
	Amount	Maturity	Fixed Interest rate		principal payments
EDAP TMS GMBH	136,500	December 31, 2022	2.25	%	Monthly instalment


		Initial						Frequency of

		Amount		Maturity		Fixed Interest rate		principal payments
EDAP TMS GMBH		450,000		November 30, 2020		2.49	%	Monthly instalment


	Initial				Frequency of
	Amount	Maturity	Fixed Interest rate		principal payments
EDAP TMS FRANCE	700,000	October 16, 2021	0.40	%	Quarterly instalment


	Initial				Frequency of
	Amount	Maturity	Fixed Interest rate		principal payments
EDAP TMS FRANCE	218,000	April 1, 2025	0.99	%	Monthly instalment


	Initial				Frequency of
	Amount	Maturity	Fixed Interest rate		principal payments
EDAP TMS FRANCE	2,000,000	August 11, 2021	0.25	%	Monthly instalment


	Initial				Frequency of
	Amount	Maturity	Fixed Interest rate		principal payments
EDAP TMS FRANCE	2,000,000	August 4, 2021	0.25	%	Monthly instalment


	Initial				Frequency of
	Amount	Maturity	Fixed Interest rate		principal payments
EDAP TMS FRANCE	700,000	October 16, 2021	0.40	%	Quarterly instalment


		Initial						Frequency of

		Amount		Maturity		Fixed Interest rate		principal payments
EDAP TECHNOMED SDN BHD		90,000		July 31, 2022		4.64	%	Monthly instalment


	Initial				Frequency of
	Amount	Maturity	Fixed Interest rate		principal payments
EDAP TECHNOMED INC	221,217	May 14, 2022	1	%	Monthly instalment

Schedule of Long-term Debt and Financial Instrument Maturities


2021		4,532
2022		504
2023		228
2024		200
2025 and thereafter		210
Total		5,675

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=119993939&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
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-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
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Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
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-Section 55
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-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

OTHER LONG-TERM LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2020

OTHER LONG-TERM LIABILITIES

Schedule of Other Long-term Liabilities


	2020	2019
Provision for retirement indemnities (Japan & France), less current portion	2,273	2,167
Provision for employee termination indemnities (Korea) less current portion	69	56
Provision for Asset Retirement Obligation (Japan) less current portion	113	117
Provision for warranty costs, less current portion	106	110
Conditional government advances, less current portion	1,097	1,071
Accrued interest less current portion	62	46
Total	3,720	3,567

Defined Benefit Plan, Assumptions


	Pension benefits France
	2020		2019
Discount rate	0.60	%	0.90	%
Salary increase	2.50	%	2.50	%
Retirement age	65		65
Average retirement remaining service period	24		24


	Pension benefits Japan
	2020		2019
Discount rate	0.60	%	0.60	%
Salary increase	2.50	%	2.50	%
Retirement age	60		60
Average retirement remaining service period	14		14

Schedule of Amounts Recognized in Balance Sheet

In 2020, provision presentation according to ASC 715 in thousands of euros :


	France	Japan
Non-current liabilities	1,032	1,241
Current liabilities	80	69
Accumulated other comprehensive income (loss)	(111)	(130)
Total	1,000	1,181

In 2019, provision presentation according to ASC 715 in thousands of euros:


	France	Japan
Non-current liabilities	960	1,207
Current liabilities	10	22
Accumulated other comprehensive income (loss)	(67)	(136)
Total	903	1,093

Schedule of Defined Benefit Plans Disclosures


France	2020	2019	2018
Change in benefit obligations:
Benefit obligations at beginning of year	969	976	895
Service cost	88	68	67
Interest cost	9	16	14
Net loss or (gain)	—	2	—
Actuarial (gain) or loss	45	(93)
Amortization of net prior service cost	1	1	1
Benefits paid	—	—	—
Benefit obligations at end of year ⁽¹⁾	1,111	969	976
Unrecognized actuarial (gain) loss ⁽²⁾	94	48	141
Unrecognized prior service cost ⁽²⁾	17	18	20
Accrued pension cost	1,000	903	815

(1)

The accumulated benefit obligation was €800 thousand and €693 thousand at December 31, 2020 and 2019 respectively.

(2)

The amount in accumulated other comprehensive income (loss) to be recognized as components of net periodic benefit costs in 2020 is €1 thousand.


Japan	2020	2019	2018
Change in benefit obligations:
Benefit obligations at beginning of year	1,230	1,311	1,182
Service cost	123	140	131
Interest cost	7	6	6
Amortization of net loss	1	27	26
Actuarial (gain) / loss	(1)	(294)	—
Benefits paid	(5)	(3)	(94)
Exchange rate impact	(44)	42	(60)
Benefit obligations at end of year⁽¹⁾	1,310	1,230	1,311
Unrecognized actuarial (gain) loss ⁽²⁾	130	136	416
Unrecognized prior service cost ⁽²⁾	—	—	—
Accrued pension cost	1,181	1,093	895

(1)

The accumulated benefit obligation was €1,134 thousand and €1,062 thousand at December 31, 2020 and 2019, respectively.

(2)

The amount in accumulated other comprehensive income (loss) to be recognized as components of net periodic benefit costs in 2020 is €1 thousand.

Schedule of Expected Benefit Payments


	France	Japan
2021	80	70
2022	—	105
2023	67	114
2024	—	157
2025	—	167
2026-2030	318	397
	465	1,008

SHAREHOLDERS' EQUITY (Tables)

12 Months Ended

Dec. 31, 2020

SHAREHOLDERS' EQUITY

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions


	2020		2019		2018
Weighted-average expected life (years)	—	⁽²⁾	6.25		6.25
Expected volatility rates⁽¹⁾	—		49.45	%	52.6	%
Expected dividend yield	—		0	%	0	%
Risk-free interest rate	—		(0.08)	%	0.18	%
Weighted-average exercise price (€)	—		3.90		2.65
Weighted-average fair value of options granted during the year (€)	—		1.93		1.33

(1)

^{Historical volatility calculated over 10} ^years.

(2)

^{There was no new plan for the} ^{year 2020.}

Disclosure of Share-based Compensation Arrangements by Share-based Payment Award


	2020		2019		2018
		Weighted		Weighted		Weighted
		average		average		average
		exercice		exercice		exercice
	Options	price (€)	Options	price (€)	Options	price (€)
Outstanding on January 1,	1,273,900	2.78	1,347,600	2.61	1,207,600	2.61
Granted	—	—	155,000	3.90	165,000	2.65
Exercised	(23,750)	2.54	(143,700)	2.16	—	—
Forfeited	(21,250)	2.55	(85,000)	1.94	(25,000)	3.05
Expired	(42,000)	2.38	—	—	—	—
Outstanding on December 31,	1,186,900	2.81	1,273,900	2.78	1,347,600	2.61
Exercisable on December 31,	970,650	2.73	818,900	2.60	772,600	2.44
Share purchase options available for grant on December 31,	292,428		250,428		250,428

Share-based Payment Arrangement, Option, Exercise Price Range


	Outstanding options		Fully vested options ⁽¹⁾
		Weighted	Weighted			Weighted
		average	average	Aggregate		average	Aggregate
		remaining	exercise	Intrinsic		exercise	Intrinsic
		contractual	price	Value		price	Value
Exercise price (€)	Options	life	(€)	(2)	Options	(€)	(2)
3.90	130,000	8.8	3.90	42,576	32,500	3.90	13,017
3.22	465,000	5.3	3.22	468,492	465,000	3.22	468,492
2.65	145,000	7.7	2.65	228,739	72,500	2.65	114,369
2.39	184,400	6.3	2.39	338,837	138,150	2.39	253,852

1.91	262,500	2.0	1.91	608,346	262,500	1.91	608,346
1.91 to 3.90	1,186,900	6.0	2.81	1,686,989	970,650	2.73	1,458,076

(1)

Fully vested options are all exercisable options.

(2)

Schedule of Nonvested Share Activity


		Weighted average
		Grant-Date Fair
	Options	Value (€)
Non-vested at January 1, 2018	593,750	1.53
Granted	165,000	1.33
Vested	(180,000)	1.56
Forfeited	(3,750)	1.29
Non-vested at December 31, 2018	575,000	1.47
Non-vested at January 1, 2019	575,000	1.47
Granted	155,000	1.93
Vested	(204,000)	1.52
Forfeited	(70,600)	1.58
Non-vested at December 31, 2019	455,000	1.58
Non-vested at January 1, 2020	455,000	1.58
Granted	0	0
Vested	(235,000)	1.58
Forfeited	(3,750)	1.54
Non-vested at December 31, 2020	216,250	1.59

Schedule of Accumulated Other Comprehensive Income (Loss)


	Year Ended December 31, 2020
	Foreign currency
	translation	Provision for
	adjustment	retirement indemnities	Total
Beginning balance	(3,234)	(203)	(3,436)
Other comprehensive income (loss) before reclassifications	—	—	—
Reclassified from accumulated other comprehensive loss	—	—	—
Net current-period other comprehensive income (loss)	410	(38)	372
Ending balance	(2,824)	(241)	(3,064)


	Year Ended December 31, 2019
	Foreign currency
	translation	Provision for
	adjustment	retirement indemnities	Total
Beginning balance	(3,173)	(577)	(3,748)
Other comprehensive income (loss) before reclassifications	—	—	—
Reclassified from accumulated other comprehensive loss	—	—	—
Net current-period other comprehensive income (loss)	(61)	374	313
Ending balance	(3,234)	(203)	(3,436)

TOTAL SALES (Tables)

12 Months Ended

Dec. 31, 2020

TOTAL SALES

Disaggregation of Revenue


Timing of revenue recognition	2020	2019	2018
Products transferred at a point in time	32,862	36,767	31,373
Products and services transferred over time	8,787	8,092	7,790
	41,649	44,859	39,163

Revenue from External Customers by Geographic Areas


Primary geographical markets (€)	2020	2019	2018
Asia	15,872	17,939	14,119
France	10,021	11,350	11,577
United States	5,611	5,194	2,048
Others geographical areas	10,146	10,377	11,419
	41,649	44,859	39,163

OTHER REVENUES (Tables)

12 Months Ended

Dec. 31, 2020

OTHER REVENUES

Schedule of Other Revenues

COSTS OF SALES (Tables)

12 Months Ended

Dec. 31, 2020

COSTS OF SALES

Schedule of Costs of Sales


	2020	2019	2018
Direct costs of sales	(14,058)	(14,919)	(13,683)
Indirect costs of sales	(9,225)	(8,990)	(8,583)
Total costs of sales	(23,283)	(23,909)	(22,266)

RESEARCH AND DEVELOPMENT EXPENSES (Tables)

12 Months Ended

Dec. 31, 2020

RESEARCH AND DEVELOPMENT EXPENSES

Schedule of Research and Development Expenses


	2020	2019	2018
Gross research and development expenses	(5,173)	(4,727)	(4,863)
Research Tax Credit	492	762	685
Grants	184	236	90
Net Research and development expenses	(4,496)	(3,728)	(4,088)

FINANCIAL INCOME, NET (Tables)

12 Months Ended

Dec. 31, 2020

FINANCIAL INCOME, NET

Schedule of Interest Income and Interest Expense


	2020	2019	2018
Interest income	10	20	19
Interest expense	(108)	(165)	(111)
Warrants exercised / forfeited	—	—	889
Total	(98)	(146)	797

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2020

INCOME TAXES

Schedule of Income before Income Tax, Domestic and Foreign


	2020	2019	2018
France	(2,042)	1,803	1,687
Other countries	854	388	(1,667)
Total	(1,188)	2,191	20

Schedule of Components of Income Tax Expense (Benefit)


	2020	2019	2018
Current income tax expense:
France	(158)	(237)	(163)
Other countries	(312)	(550)	(351)
Sub-total current income tax expense	(471)	(787)	(515)
Deferred income tax (expense) benefit:
France	8	(1)	2
Other countries	(53)	109	155
Sub-total deferred income tax (expense) benefit	(45)	108	157
Total	(516)	(679)	(358)

Schedule of Deferred Tax Assets and Liabilities


	2020	2019
Net operating loss carry forwards	14,014	13,642
Elimination of intercompany profit in inventory	161	269
Elimination of intercompany profit in fixed assets	244	349
Provisions for retirement indemnities	634	577
Capital leases treated as operating leases for tax	56	29
Other items	775	544
Total deferred tax assets	15,883	15,410
Total deferred tax liabilities	—	—
Net deferred tax assets	15,883	15,410
Valuation allowance for deferred tax assets	(15,508)	(14,977)
Deferred tax assets (liabilities), net of allowance	374	432

Schedule of Effective Income Tax Rate Reconciliation


	2020	2019	2018
Theoretical tax income / (loss) at French statutory tax rate	333	(614)	(6)
Income of foreign subsidiaries taxed at different tax rates	9	(51)	(124)
Effect of net operating loss carry-forwards and valuation allowances	(858)	189	(210)
Non-taxable debt fair value variation	—	—	235
Permanent differences	(159)	(251)	(392)
Effect of cancellation of intra-group positions	152	(54)	35
French business tax included in income tax (CVAE)	(156)	(159)	(161)
Other	164	263	265
Effective income (loss) tax	(516)	(679)	(358)

EARNINGS (LOSS) PER SHARE (Tables)

12 Months Ended

Dec. 31, 2020

EARNINGS (LOSS) PER SHARE

Schedule of Earnings Per Share, Basic and Diluted


	December 31, 2020		December 31, 2019		December 31, 2018
Income (loss) available to common shareholders (in Euros)	€	(1,703,668)	€	1,512,056	€	(338,382)
Number of shares for the computation of basic EPS		29,148,108		29,016,118		28,997,866
Basic EPS (in Euros)	€	(0.06)	€	0.05	€	(0.01)
Effect of dilutive securities		622,723		604,238		347,500
Number of shares for the computation of diluted EPS		29,148,108		29,615,466		28,997,866
Diluted EPS income / (loss) (in Euros)	€	(0.06)	€	0.05	€	(0.01)

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2020

FAIR VALUE OF FINANCIAL INSTRUMENTS

Schedule of fair value measurement inputs level 1


	ASC 820	December	December
	Level	31, 2020	31, 2019
Assets:
Cash and cash equivalents	Level 1	24,696	20,886
Liabilities:
Short-term borrowings	Level 1	2,638	3,513
Long-Term Debt	Level 1	5,675	1,420

SEGMENT INFORMATION (Tables)

12 Months Ended

Dec. 31, 2020

SEGMENT INFORMATION

Schedule of Reconciliation of Operating Profit (Loss) from Segments to Consolidated


	2020	2019	2018
Segment operating income (loss)	269	2,201	(1,315)
Financial income (expense), net	(98)	(146)	797
Foreign Currency exchange (losses) gains, net	(1,359)	136	538
Income tax (expense) credit	(516)	(679)	(358)
Consolidated net profit (loss)	(1,704)	1,512	(338)

Schedule of Segment Reporting Information, by Segment


	HIFU	ESWL	DISTRIB	Reconciling	Total
2020	Division	Division	Division	Items	consolidated
Sales of goods	6,000	6,248	15,274		27,523
Sales of RPPs & leases	3,594	927	224		4,745
Sales of spare parts and services	1,831	5,707	1,844		9,382
Total sales	11,425	12,882	17,342		41,649
External other revenues	12	—	—		12
Total revenues	11,438	12,882	17,342		41,662
Total COS	(5,144)	(7,232)	(10,906)		(23,283)
Gross profit	6,293	5,649	6,436		18,379
R&D expenses	(2,583)	(1,555)	(358)		(4,496)
Selling and marketing expenses	(3,151)	(2,052)	(4,076)		(9,279)
G&A expenses	(1,005)	(964)	(900)	(1,465)	(4,335)
Total expenses	(6,738)	(4,572)	(5,335)	(1,465)	(18,110)
Operating income (loss) from operations	(445)	1,078	1,102	(1,465)	269
Total Assets	16,279	15,567	20,795	2,551	55,193
Capital expenditures	1,144	309	557	—	2,011
Non-current assets	3,706	2,466	3,628	—	9,801
Goodwill	645	496	1,271	—	2,412


	HIFU	ESWL	DISTRIB	Reconciling	Total
2019	Division	Division	Division	Items	consolidated
Sales of goods	8,311	6,715	15,084	—	30,111
Sales of RPPs & leases	4,162	1,426	158	—	5,747
Sales of spare parts and services	1,618	6,048	1,335	—	9,001
Total sales	14,092	14,190	16,578	—	44,859
External other revenues	52	—	—	—	52
Total revenues	14,144	14,190	16,578	—	44,912
Total COS	(6,152)	(7,816)	(9,941)	—	(23,909)
Gross profit	7,991	6,374	6,637	—	21,002
R&D expenses	(1,962)	(1,394)	(372)	—	(3,728)
Selling and marketing expenses	(4,402)	(2,441)	(4,008)	—	(10,850)
G&A expenses	(1,168)	(904)	(854)	—	(4,224)
Total expenses	(7,533)	(4,738)	(5,233)	—	(18,802)
Operating income (loss) from operations	459	1,635	1,404	—	2,201
Total Assets	16,665	15,892	16,500	4,012	53,068
Capital expenditures	915	298	319	—	1,532
Non-current assets	4,096	4,448	2,427	—	10,971
Goodwill	645	450	1,317	—	2,412


	HIFU	ESWL	DISTRIB	Reconciling	Total
2018	Division	Division	Division	Items	consolidated
Sales of goods	5,494	7,069	12,505	—	25,070
Sales of RPPs & leases	3,750	1,254	82	—	5,086
Sales of spare parts and services	1,780	6,157	1,070	—	9,007
Total sales	11,025	14,480	13,657	—	39,163
External other revenues	19	—	—	—	19
Total revenues	11,044	14,480	13,657	—	39,183
Total COS	(5,312)	(8,178)	(8,775)	—	(22,266)
Gross profit	5,732	6,302	4,882	—	16,917
R&D expenses	(2,394)	(1,410)	(285)	—	(4,088)
Selling and marketing expenses	(4,628)	(2,357)	(3,566)	—	(10,551)
G&A expenses	(1,036)	(731)	(580)	(1,247)	(3,593)
Total expenses	(8,057)	(4,498)	(4,431)	(1,247)	(18,232)
Operating income (loss) from operations	(2,325)	1,804	451	(1,247)	(1,316)
Total Assets	13,648	16,700	13,149	5,243	48,740
Capital expenditures	1,154	451	324	—	1,928
Non-current assets	2,855	3,697	1,462	—	8,013
Goodwill	645	403	1,364	—	2,412

VALUATION ACCOUNTS (Tables)

12 Months Ended

Dec. 31, 2020

VALUATION ACCOUNTS

Schedule of valuation accounts


	Allowance	Allowance
	for deferred	for doubtful	Slow-moving	Warranty
	tax assets	accounts	inventory	reserve
Balance as of December 31, 2017	14,266	1,029	723	449
Charges to costs and expenses	515	365	355	433
Deductions: write-off and others	(228)	10	(104)	(334)
Balance as of December 31, 2018	14,553	1,404	974	548
Charges to costs and expenses	859	94	333	131
Deductions: write-off and others	(435)	(9)	(223)	(308)
Balance as of December 31, 2019	14,977	1,490	1,085	370
Charges to costs and expenses	596	90	651	266
Deductions: write-off and others	(65)	(858)	(172)	(268)
Balance as of December 31, 2020	15,508	722	1,563	368

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION (Tables)

12 Months Ended

Dec. 31, 2020

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

Schedule of interest and income taxes paid


Non-cash transactions:	2020	2019	2018
Financing lease obligations incurred	192	203	427
Operating lease obligations incurred	317	3,483	—


		2020
Operating cash flow used in operating leases		941
Operating cash flow used in finance leases		18
Financing cash flow used in finance leases		321

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Jan. 01, 2019
Warranty term	one to two years
Short term investments	€ 0
Accounts Receivable, Allowance for Credit Loss, Writeoff	827	€ 15
Gain (loss) derivatives	0
Warranty expense	266	131	€ 433
Advertising Expense	291	739	€ 719
Operating lease, right of use	€ 1,895	2,647
Operating lease, liability		€ 2,684
Accounting Standards Update 2016-02
Operating lease, right of use				€ 3,500
Operating lease, liability				€ 3,500
Maximum \| Sale and leaseback
Useful life	7 years

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and equipment (Details)	12 Months Ended
	Dec. 31, 2020
Leasehold improvements
Property and equipment
Useful life	10 years
Equipment \| Minimum
Property and equipment
Useful life	3 years
Equipment \| Maximum
Property and equipment
Useful life	10 years
Furniture, fixtures, fittings and other \| Minimum
Property and equipment
Useful life	2 years
Furniture, fixtures, fittings and other \| Maximum
Property and equipment
Useful life	10 years

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Intangible Assets (Details)	12 Months Ended
	Dec. 31, 2020
Patents
Intangible assets
Useful life (in years)	5 years
SAP Licenses
Intangible assets
Useful life (in years)	10 years
Other licenses
Intangible assets
Useful life (in years)	5 years
Trade name and trademark
Intangible assets
Useful life (in years)	7 years

TRADE ACCOUNTS AND NOTES RECEIVABLE, NET (Details) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
TRADE ACCOUNTS AND NOTES RECEIVABLE, NET
Trade accounts receivable	€ 11,363	€ 11,807
Notes receivable	667	1,013
Less: allowance for doubtful accounts	(722)	(1,490)
Total	11,307	11,330
Less current portion	(11,307)	(11,328)
Total long-term portion		2
Bad debt expense:
Bad debt expense	€ 87	€ 84	€ 362

OTHER RECEIVABLES - (Details) - EUR (€) € in Thousands	Dec. 31, 2020	Dec. 31, 2019
OTHER RECEIVABLES
Research and development tax credit receivable from the French State	€ 492	€ 766
Value-added taxes receivable	403	422
Other receivables from Government and public authorities	64	26
Others	72	46
Other receivables	€ 1,031	€ 1,259

INVENTORIES (Details) - EUR (€) € in Thousands	12 Months Ended
INVENTORIES (Details) - EUR (€) € in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
INVENTORIES
Components, spare parts	€ 6,050	€ 4,959
Work-in-progress	226	584
Finished goods - own manufactured products	1,283	1,737
Finished goods - distribution products	1,994	1,981
Total gross inventories	9,552	9,262
Less: allowance for slow-moving inventory and net realizable value	(1,563)	(1,085)
Total	7,989	8,178
Provision for slow moving inventory:
Inventory Write-down	€ 651	€ 168	€ 227

OTHER ASSETS (Details) - EUR (€) € in Thousands	Dec. 31, 2020	Dec. 31, 2019
OTHER ASSETS
Prepaid expenses, current portion	€ 369	€ 447
Other assets, current portion	€ 369	€ 447

PROPERTY AND EQUIPMENT, NET (Details) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Property and equipment
Depreciation expense	€ 1,695	€ 1,511	€ 981
Capitalized costs on equipment leased to customers	11,141	9,778
Accumulated amortization	8,142	6,644
Depreciation expense related to financing lease right-of-use assets	401	448	386
Reduction to Right-of-use Assets Resulting From Reduction to Financing Lease Liability	670	122
Assets leased to customers
Property and equipment
Depreciation expense	240	23	€ 51
Capitalized costs on equipment leased to customers	264	342
Accumulated amortization	€ 102	€ 95

PROPERTY AND EQUIPMENT, NET - Schedule of Property and Equipment,net (Details) - EUR (€) € in Thousands	Dec. 31, 2020	Dec. 31, 2019
Property and equipment
Property and equipment, gross	€ 11,141	€ 9,778
Less: accumulated depreciation and amortization	(8,142)	(6,644)
Property and equipment, net	3,000	3,134
Equipment
Property and equipment
Property and equipment, gross	8,405	7,002
Furniture, fixture, and fittings and other
Property and equipment
Property and equipment, gross	€ 2,736	€ 2,776

PROPERTY AND EQUIPMENT, NET - Schedule of Financing leases right-of-use assets (Details) - EUR (€) € in Thousands	Dec. 31, 2020	Dec. 31, 2019
Property and equipment
Finance Lease, Right-of-Use Asset, before Accumulated Amortization	€ 1,554	€ 2,295
Less: accumulated depreciation and amortization	(850)	(1,360)
Total	704	935
Equipment
Property and equipment
Finance Lease, Right-of-Use Asset, before Accumulated Amortization	359	713
Vehicles and IT equipment
Property and equipment
Finance Lease, Right-of-Use Asset, before Accumulated Amortization	€ 1,196	€ 1,582

OPERATING LEASE RIGHT-OF-USE ASSETS (Details) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
OPERATING LEASE RIGHT-OF-USE ASSETS
Reduction to Right-of-use Assets Resulting From Reduction to Operating Lease Liability	€ 931	€ 836
Variable Lease, Cost	101	108
Short-term Lease, Cost	€ 71	€ 71

OPERATING LEASE RIGHT-OF-USE ASSETS (Details) - EUR (€) € in Thousands	Dec. 31, 2020	Dec. 31, 2019
Right of use assets:
Operating lease, right of use	€ 1,895	€ 2,647
Facilities
Right of use assets:
Operating lease, right of use	1,584	2,387
Equipment
Right of use assets:
Operating lease, right of use	237	58
Furniture, fixture, fittings and other
Right of use assets:
Operating lease, right of use	€ 74	€ 202

GOODWILL AND INTANGIBLE ASSETS (Details) € in Thousands	12 Months Ended
GOODWILL AND INTANGIBLE ASSETS (Details) € in Thousands	Dec. 31, 2020 EUR (€) item	Dec. 31, 2019 EUR (€)	Dec. 31, 2018 EUR (€)
Goodwill
Goodwill	€ 2,412	€ 2,412
Reporting units \| item	3
Impairment	€ 0
Amortization expense	113	€ 113	€ 110
Urology Devices and Services (ESWL)
Goodwill
Goodwill	496
Distribution Services (DIST)
Goodwill
Goodwill	1,271
High Intensity Focused Ultrasound (HIFU)
Goodwill
Goodwill	€ 645

GOODWILL AND INTANGIBLE ASSETS - Intangible Assets (Details) - EUR (€) € in Thousands	Dec. 31, 2020	Dec. 31, 2019
Intangible assets
Intangible assets, gross	€ 2,619	€ 2,625
Accumulated amortization	(1,858)	(1,855)
Intangible assets, net	761	770
Licenses
Intangible assets
Intangible assets, gross	1,570	1,466
Accumulated amortization	(813)	(699)
Trade name and trademark
Intangible assets
Intangible assets, gross	412	427
Accumulated amortization	(409)	(424)
Patents
Intangible assets
Intangible assets, gross	412	412
Accumulated amortization	(412)	(412)
Organization Costs
Intangible assets
Intangible assets, gross	225	320
Accumulated amortization	€ (225)	€ (320)

GOODWILL AND INTANGIBLE ASSETS - Estimated amortization expense (Details) € in Thousands	Dec. 31, 2020 EUR (€)
GOODWILL AND INTANGIBLE ASSETS
2021	€ 113
2022	106
2023	94
2024	87
2025	87
Total	€ 488

TRADE ACCOUNTS AND NOTES PAYABLE (Details) - EUR (€) € in Thousands	Dec. 31, 2020	Dec. 31, 2019
TRADE ACCOUNTS AND NOTES PAYABLE
Trade accounts payable	€ 5,708	€ 6,034
Notes payable		12
Trade accounts and notes payable	€ 5,708	€ 6,046

DEFERRED REVENUES - Summary of Deferred Revenues (Details) - EUR (€) € in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Deferred revenues, total	€ 3,627	€ 3,205
Less long term portion	(926)	(1,313)
Deferred revenues, current portion	2,701	1,892
Maintenance [Member]
Deferred revenues, total	1,761	1,741
RPP [Member]
Deferred revenues, total	255	243
Sale of Devices [Member]
Deferred revenues, total	135	115
Extension of Warranty [Member]
Deferred revenues, total	782	837	€ 855
Research and Development Grants [Member]
Deferred revenues, total	€ 693	€ 269

DEFERRED REVENUES - Recognition Period (Details) € in Thousands	Dec. 31, 2020 EUR (€)
Extension of Warranty [Member]
Revenue, remaining performance obligation, amount	€ 782

DEFERRED REVENUES - Deferred Revenue Recognition Period 2 (Details) - Extension of Warranty [Member] € in Thousands	Dec. 31, 2020 EUR (€)
Revenue, remaining performance obligation, amount	€ 782
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
Revenue, remaining performance obligation, expected timing of satisfaction, period (Year)	1 year
Revenue, remaining performance obligation, amount	€ 300
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Revenue, remaining performance obligation, expected timing of satisfaction, period (Year)	1 year
Revenue, remaining performance obligation, amount	€ 314
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue, remaining performance obligation, expected timing of satisfaction, period (Year)	1 year
Revenue, remaining performance obligation, amount	€ 143
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue, remaining performance obligation, expected timing of satisfaction, period (Year)	1 year
Revenue, remaining performance obligation, amount	€ 18
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Revenue, remaining performance obligation, expected timing of satisfaction, period (Year)	1 year
Revenue, remaining performance obligation, amount	€ 8

DEFERRED REVENUES - Change in Deferred Revenue on Extension of Warranty (Details) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Balance	€ 3,205
Balance	3,627	€ 3,205
Extension of Warranty [Member]
Balance	837	855
New extension of warranty	206	254
Recognition of revenue	(261)	(272)
Balance	€ 782	€ 837

OTHER ACCRUED LIABILITIES (Details)	Dec. 31, 2020
OTHER ACCRUED LIABILITIES
Conditional Advances, Interest Rate, Percentage	1.44%

OTHER ACCRUED LIABILITIES - Schedule of Other Accrued Liabilities (Details) - EUR (€) € in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Retirement indemnities	€ 2,665	€ 2,444
Provision for warranty costs	368	370	€ 547
Accruals for payroll and associated taxes	734	738
Conditional government advances	1,097	1,071
Value added tax payable	420	557
Advances received from customers	551
Provision for Asset Retirement Obligation (Japan)	113	117
Others	477	323
Total	6,494	5,676
Less non-current portion	(3,720)	(3,567)
Current portion	2,774	2,109
KOREA, REPUBLIC OF
Provision for employee termination indemnities	€ 69	€ 56

OTHER ACCRUED LIABILITIES - Conditional Advances (Details) - EUR (€) € in Thousands	Dec. 31, 2020	Dec. 31, 2019
OTHER ACCRUED LIABILITIES
2021	€ 6
2022	214
2023	214
2024	214
2025 and thereafter	447
Total	€ 1,097	€ 1,071

OTHER ACCRUED LIABILITIES - Schedule of Changes in Warranty Costs Provision (Details) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
OTHER ACCRUED LIABILITIES
Beginning of year	€ 370	€ 547
Amount used during the year	(268)	(308)
New warranty expenses	266	131
End of year	368	370
Less current portion	(262)	(260)
Long term portion	€ 106	€ 110

LEASE OBLIGATIONS (Details) - EUR (€) € in Thousands	12 Months Ended
LEASE OBLIGATIONS (Details) - EUR (€) € in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Finance Lease, Liability, Total	€ 899	€ 1,044
Finance Lease, Interest Expense	€ 33	€ 29
Finance Lease, Weighted Average Remaining Lease Term (Year)	2 years 4 months 17 days	3 years 2 months 12 days
Finance Lease, Weighted Average Discount Rate, Percent	3.06%	2.44%
Operating Lease, Weighted Average Remaining Lease Term (Year)	2 years 9 months 18 days	3 years 6 months 3 days
Operating Lease, Weighted Average Discount Rate, Percent	1.45%	1.56%
Operating Lease, Expense	€ 941	€ 828	€ 1,002
Medical Devices [Member]
Finance Lease, Liability, Total	223
Vehicles and Other IT Equipment [Member]
Finance Lease, Liability, Total	€ 676

LEASE OBLIGATIONS - Maturities of Finance Leases Liabilities (Details) - EUR (€) € in Thousands	Dec. 31, 2020	Dec. 31, 2019
LEASE OBLIGATIONS
2020		€ 415
2021	€ 360	299
2022	280	221
2023	190	122
2024	72
2024 and thereafter		30
2025 and thereafter	28
Total undiscounted minimum lease payments	930	1,086
Less: amount representing interest	(33)	(41)
Present value of minimum lease payments	899	1,044
Less: current portion	(344)	(392)
Long-term portion	€ 555	€ 653

LEASE OBLIGATIONS - Maturities of Operating Leases Liabilities (Details) - EUR (€) € in Thousands	Dec. 31, 2020	Dec. 31, 2019
LEASE OBLIGATIONS
2020		€ 980
2021	€ 803	758
2022	523	474
2023	381	349
2024	195
2024 and thereafter		171
Total undiscounted minimum lease payments	1,901	2,732
Less: amount representing interest		(48)
Present value of minimum lease payments		2,684
Less: current portion	(802)	(958)
Long-term portion	€ 1,099	€ 1,726

SHORT-TERM BORROWINGS (Details) - EUR (€) € in Thousands	Dec. 31, 2020	Dec. 31, 2019
Short-term borrowings	€ 2,638	€ 3,513
Factored Account Receivables [Member]
Short-term borrowings	€ 2,638	3,185
Short Borrowing Japan [Member]
Short-term borrowings		€ 328

LONG TERM DEBT AND FINANCIAL INSTRUMENTS CARRIED AT FAIR VALUE (Details) - Loans Payable [Member]	Dec. 31, 2020 EUR (€)	Nov. 30, 2020 EUR (€)	Oct. 31, 2020 EUR (€)	Apr. 30, 2020 JPY (¥)	Dec. 31, 2019 EUR (€)
Debt Instrument, Face Amount	€ 6,000,000
JAPAN
Debt Instrument, Collateral Amount \| ¥				¥ 40,000,000
GERMANY \| High Intensity Focused Ultrasound (HIFU) Equipment 1 [Member]
Debt Instrument, Collateral Amount		€ 450,000
GERMANY \| Urology Devices and Services (UDS) Equipment [Member]
Debt Instrument, Collateral Amount					€ 136,000
GERMANY \| High Intensity Focused Ultrasound (HIFU) Equipment 2 [Member]
Debt Instrument, Collateral Amount	438,000
France \| High Intensity Focused Ultrasound (HIFU) Equipment 1 [Member]
Debt Instrument, Collateral Amount	€ 1,530,000		€ 218,000

LONG TERM DEBT AND FINANCIAL INSTRUMENTS CARRIED AT FAIR VALUE - Schedule of Long Term Debt (Details) - EUR (€) € in Thousands	Dec. 31, 2020	Dec. 31, 2019
Long term debt	€ 5,675	€ 1,420
Less current portion	(4,532)	(462)
Long-term debt, non-current	1,143	957
France
Long term debt	4,394	351
JAPAN
Long term debt	900	617
GERMANY
Long term debt	193	438
USA
Long term debt	180
Malaysia
Long term debt	€ 8	€ 13

LONG TERM DEBT AND FINANCIAL INSTRUMENTS CARRIED AT FAIR VALUE - Long-term Debt (Details) $ in Thousands	1 Months Ended			12 Months Ended
	Dec. 31, 2020 EUR (€)	Nov. 30, 2020 EUR (€)	Oct. 31, 2020 EUR (€)	Dec. 31, 2020 EUR (€)	Dec. 31, 2019 EUR (€)	Dec. 31, 2020 USD ($)	Dec. 31, 2020 JPY (¥)	Dec. 31, 2019 JPY (¥)
JAPAN \| EDAP Technomed Co Ltd. [Member] \| Loan One [Member]
Debt Instrument, Face Amount \| ¥							¥ 80,000,000	¥ 80,000,000
Maturity				Aug. 02, 2026	Aug. 02, 2026
Interest rate	1.98%			1.98%	1.98%	1.98%	1.98%	1.98%
Frequency of principal payments				Monthly instalment	Monthly instalment
JAPAN \| EDAP Technomed Co Ltd. [Member] \| Loan Two [Member]
Debt Instrument, Face Amount \| ¥							¥ 50,000,000	¥ 40,000,000
Maturity				Apr. 02, 2025	Apr. 15, 2020
Interest rate	1.80%			1.80%	2.91%	1.80%	1.80%	2.91%
Frequency of principal payments				Monthly instalment	Monthly instalment
GERMANY \| EDAP TMS GMBH [Member] \| High Intensity Focused Ultrasound (HIFU) Equipment 1 [Member] \| Loan One [Member]
Debt Instrument, Face Amount	€ 400,000	€ 450,000		€ 400,000	€ 136,500
Maturity		Nov. 30, 2020		Apr. 30, 2023	Dec. 31, 2022
Interest rate	2.40%	2.49%		2.40%	2.25%	2.40%	2.40%	2.25%
Frequency of principal payments		Monthly instalment		Monthly instalment	Monthly instalment
France \| EDAP TMS France [Member] \| Loan One [Member]
Debt Instrument, Face Amount	€ 700,000		€ 218,000	€ 700,000	€ 700,000
Maturity			Apr. 01, 2025	Oct. 16, 2021	Oct. 16, 2021
Interest rate	0.40%		0.99%	0.40%	0.40%	0.40%	0.40%	0.40%
Frequency of principal payments			Monthly instalment	Quarterly instalment	Quarterly instalment
France \| EDAP TMS France [Member] \| High Intensity Focused Ultrasound (HIFU) Equipment 1 [Member] \| Loan One [Member]
Debt Instrument, Face Amount	€ 2,000,000			€ 2,000,000
Maturity	Aug. 11, 2021
Interest rate	0.25%			0.25%		0.25%	0.25%
Frequency of principal payments	Monthly instalment
France \| EDAP TMS France [Member] \| High Intensity Focused Ultrasound (HIFU) Equipment 2 [Member] \| Loan One [Member]
Debt Instrument, Face Amount	€ 2,000,000			€ 2,000,000
Maturity	Aug. 04, 2021
Interest rate	0.25%			0.25%		0.25%	0.25%
Frequency of principal payments	Monthly instalment
Malaysia \| EDAP Technomed Sdn Bdh [Member]
Debt Instrument, Face Amount \| $						$ 90
Maturity				Jul. 31, 2022
Interest rate	4.64%			4.64%		4.64%	4.64%
Frequency of principal payments				Monthly instalment
USA \| EDAP Technomed Co Ltd. [Member]
Debt Instrument, Face Amount	€ 221,217			€ 221,217
Maturity				May 14, 2022
Interest rate	1.00%			1.00%		1.00%	1.00%
Frequency of principal payments				Monthly instalment

LONG TERM DEBT AND FINANCIAL INSTRUMENTS CARRIED AT FAIR VALUE - Schedule Of Long-term Debt and Financial Instruments Maturities (Details) - EUR (€) € in Thousands	Dec. 31, 2020	Dec. 31, 2019
LONG TERM DEBT AND FINANCIAL INSTRUMENTS CARRIED AT FAIR VALUE
2021	€ 4,532
2022	504
2023	228
2024	200
2025 and thereafter	210
Total	€ 5,675	€ 1,420

OTHER LONG-TERM LIABILITIES (Details) - EUR (€) € in Thousands	Dec. 31, 2020	Dec. 31, 2019
Defined Benefit Retirement Indemnity Plans, France [Member]
Defined Benefit Plan, Accumulated Benefit Obligation	€ 800	€ 693
Defined Benefit Plan, Expected Amortization, Next Fiscal Year, Total	1
Defined Benefit Retirement Indemnity Plans, Japan [Member]
Defined Benefit Plan, Accumulated Benefit Obligation	1,134	€ 1,062
Defined Benefit Plan, Expected Amortization, Next Fiscal Year, Total	€ 1

OTHER LONG-TERM LIABILITIES - Other Long-term Liabilities (Details) - EUR (€) € in Thousands	Dec. 31, 2020	Dec. 31, 2019
OTHER LONG-TERM LIABILITIES
Provision for retirement indemnities (Japan & France), less current portion	€ 2,273	€ 2,167
Provision for employee termination indemnities (Korea) less current portion	69	56
Provision for Asset Retirement Obligation (Japan) less current portion	113	117
Provision for warranty costs, less current portion	106	110
Conditional government advances, less current portion	1,097	1,071
Accrued interest less current portion	62	46
Total	€ 3,720	€ 3,567

OTHER LONG-TERM LIABILITIES - Assumptions (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Defined Benefit Retirement Indemnity Plans, France [Member]
Discount rate	0.60%	0.90%
Salary increase	2.50%	2.50%
Retirement age	65	65
Average retirement remaining service period	24	24
Defined Benefit Retirement Indemnity Plans, Japan [Member]
Discount rate	0.60%	0.60%
Salary increase	2.50%	2.50%
Retirement age	60	60
Average retirement remaining service period	14	14

OTHER LONG-TERM LIABILITIES - Provision Presentation According to ASC 715 (Details) - EUR (€) € in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Defined Benefit Retirement Indemnity Plans, France [Member]
Non-current liabilities	€ 1,032	€ 960
Current liabilities	80	10
Accumulated other comprehensive income (loss)	(111)	(67)
Accrued pension cost	1,000	903	€ 815
Defined Benefit Retirement Indemnity Plans, Japan [Member]
Non-current liabilities	1,241	1,207
Current liabilities	69	22
Accumulated other comprehensive income (loss)	(130)	(136)
Accrued pension cost	€ 1,181	€ 1,093	€ 895

OTHER LONG-TERM LIABILITIES - Reconciliation of Pension Cost Components (Details) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Defined Benefit Retirement Indemnity Plans, France [Member]
Benefit obligations at beginning of year	€ 969	€ 976	€ 895
Service cost	88	68	67
Interest cost	9	16	14
Net loss or (gain)		2
Actuarial (gain) or loss	45	(93)
Amortization of net prior service cost	1	1	1
Benefit obligations at end of year	1,111	969	976
Unrecognized actuarial (gain) loss	94	48	141
Unrecognized prior service cost	17	18	20
Accrued pension cost	1,000	903	815
Defined Benefit Retirement Indemnity Plans, Japan [Member]
Benefit obligations at beginning of year	1,230	1,311	1,182
Service cost	123	140	131
Interest cost	7	6	6
Amortization of net loss	1	27	26
Actuarial (gain) or loss	(1)	(294)
Benefits paid	(5)	(3)	(94)
Exchange rate impact	(44)	42	(60)
Benefit obligations at end of year	1,310	1,230	1,311
Unrecognized actuarial (gain) loss	130	136	416
Accrued pension cost	€ 1,181	€ 1,093	€ 895

OTHER LONG-TERM LIABILITIES - Expected Benefit Payments (Details) € in Thousands	Dec. 31, 2020 EUR (€)
Defined Benefit Retirement Indemnity Plans, France [Member]
2021	€ 80
2023	67
2026-2030	318
Total	465
Defined Benefit Retirement Indemnity Plans, Japan [Member]
2021	70
2022	105
2023	114
2024	157
2025	167
2026-2030	397
Total	€ 1,008

SHAREHOLDERS' EQUITY (Details) - EUR (€) € / shares in Units, € in Thousands							2 Months Ended	5 Months Ended	12 Months Ended
	Apr. 26, 2019	Apr. 04, 2019	Aug. 29, 2018	Apr. 25, 2017	Apr. 26, 2016	Jan. 18, 2013	Jul. 31, 2001	Dec. 31, 1998	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2013	Jun. 28, 2019	Feb. 18, 2016	Dec. 31, 2012
Common stock, shares issued									29,457,744	29,433,994
Common stock, par value									€ 0.13	€ 0.13
Commons stock, shares outstanding									29,165,316	29,141,566
Statutory Retained Earnings (Statutory Accumulated Deficit)									€ 16,172
Treasury stock									292,428	292,428
Treasury Stock, Shares, Acquired (in shares)							180,290	112,138
Treasury Stock, Value, Acquired, Par Value Method							€ 928
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares)									0	155,000	165,000
Share Price (in EUR per share)									€ 5.17
The 2012 Plan [Member]
Common Stock, Shares Subscribed but Unissued (in shares)																	500,000
The 2016 Plan [Member]
Common Stock, Shares Subscribed but Unissued (in shares)																1,000,000
Share-based Payment Arrangement, Option [Member]
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in EUR per share)										€ 3.90	€ 2.65
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance (in shares)									1,186,900	1,273,900	1,347,600	1,207,600
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares)										155,000	165,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number (in shares)									970,650	818,900	772,600
Stock issued during period shares stock options exercised									23,750	143,700
Share-based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount									€ 105
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)									3 years 3 months
Share-based Payment Arrangement, Option [Member] \| The 2012 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares)																	500,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in EUR per share)						€ 1.91
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year)						10 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance (in shares)									262,500
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares)						500,000
Shares Granted, Value, Share-based Payment Arrangement, before Forfeiture														€ 660
Share-based Payment Arrangement, Option [Member] \| The 2012 Plan [Member] \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)						1 year
Share-based Payment Arrangement, Option [Member] \| The 2012 Plan [Member] \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)						4 years
Share-based Payment Arrangement, Option [Member] \| The 2016 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares)															1,000,000	1,000,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in EUR per share)		€ 3.90	€ 2.65	€ 2.39	€ 3.22
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year)	10 years		10 years	10 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance (in shares)									924,400
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares)		155,000	165,000	260,000	575,000
Shares Granted, Value, Share-based Payment Arrangement, before Forfeiture		€ 299	€ 219									€ 335	€ 960
Share-based Payment Arrangement, Expense									€ 160	€ 260	€ 289
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number (in shares)									708,150
Stock issued during period shares stock options exercised									13,750
Share-based Payment Arrangement, Option [Member] \| The 2016 Plan [Member] \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)	1 year	1 year	1 year	1 year
Share-based Payment Arrangement, Option [Member] \| The 2016 Plan [Member] \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year)	4 years	4 years	4 years	4 years
Share-based Payment Arrangement, Option [Member] \| The 2019 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares)															358,528
Share-based Compensation Arrangement by Share-based Payment Award, Number of pre-existing shares available for future puchase option									292,428
Options to Subscribe New Shares [Member] \| The 2019 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares)															1,000,000

SHAREHOLDERS' EQUITY - Stock Option Assumptions (Details) - € / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
SHAREHOLDERS' EQUITY
Weighted-average expected life (years) (Year)	0 years	6 years 3 months	6 years 3 months
Expected volatility rates(1)		49.45%	52.60%
Expected dividend yield		0.00%	0.00%
Risk-free interest rate			0.18%
Risk-free interest rate		(0.08%)
Weighted-average exercise price () (in EUR per share)		€ 3.90	€ 2.65
Non-vested options granted, weighted average grant-date fair value (in EUR per share)	€ 0	€ 1.93	€ 1.33

SHAREHOLDERS' EQUITY - Disclosure of Share-based Compensation Arrangements by Share-based Payment Award (Details) - € / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Non-vested options granted (in shares)	0	155,000	165,000
Share-based Payment Arrangement, Option [Member]
Outstanding - number (in shares)	1,273,900	1,347,600	1,207,600
Outstanding - Weighted average exercise price (in EUR per share)	€ 2.78	€ 2.61	€ 2.61
Non-vested options granted (in shares)		155,000	165,000
Granted - Weighted average exercise price (in EUR per share)		€ 3.90	€ 2.65
Exercised - number (in shares)	(23,750)	(143,700)
Exercised - Weighted average exercise price (in EUR per share)	€ 2.54	€ 2.16
Forfeited - number (in shares)	(21,250)	(85,000)	(25,000)
Forfeited - Weighted average exercise price (in EUR per share)	€ 2.55	€ 1.94	€ 3.05
Expired - number (in shares)	(42,000)
Expired - Weighted average exercise price (in EUR per share)	€ 2.38
Outstanding - number (in shares)	1,186,900	1,273,900	1,347,600
Outstanding - Weighted average exercise price (in EUR per share)	€ 2.81	€ 2.78	€ 2.61
Exercisable - number (in shares)	970,650	818,900	772,600
Exercisable - Weighted average exercise price (in EUR per share)	€ 2.73	€ 2.60	€ 2.44
Share purchase options available for grant - number (in shares)	292,428	250,428	250,428

SHAREHOLDERS' EQUITY - Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range (Details) € / shares in Units, € in Thousands	12 Months Ended
	Dec. 31, 2020 EUR (€) € / shares shares
Outstanding options - Number (in shares) \| shares	1,186,900
Outstanding options - Weighted average remaining contractual life (Year)	6 years
Outstanding options - Weighted average exercise price (in EUR per share)	€ 2.81
Outstanding options - Aggregate intrinsic value \| €	€ 1,686,989
Exercisable options - Number (in shares) \| shares	970,650
Exercisable options - Weighted average exercise price (in EUR per share)	€ 2.73
Exercisable options - Aggregate intrinsic value \| €	€ 1,458,076
Exercise price, Lower range (in EUR per share)	€ 1.91
Exercise price, Upper range (in EUR per share)	€ 3.90
Range 1 [Member]
Outstanding options - Number (in shares) \| shares	130,000
Outstanding options - Weighted average remaining contractual life (Year)	8 years 9 months 18 days
Outstanding options - Weighted average exercise price (in EUR per share)	€ 3.90
Outstanding options - Aggregate intrinsic value \| €	€ 42,576
Exercisable options - Number (in shares) \| shares	32,500
Exercisable options - Weighted average exercise price (in EUR per share)	€ 3.90
Exercisable options - Aggregate intrinsic value \| €	€ 13,017
Exercise price, Lower range (in EUR per share)	€ 3.90
Range 2 [Member]
Outstanding options - Number (in shares) \| shares	465,000
Outstanding options - Weighted average remaining contractual life (Year)	5 years 3 months 18 days
Outstanding options - Weighted average exercise price (in EUR per share)	€ 3.22
Outstanding options - Aggregate intrinsic value \| €	€ 468,492
Exercisable options - Number (in shares) \| shares	465,000
Exercisable options - Weighted average exercise price (in EUR per share)	€ 3.22
Exercisable options - Aggregate intrinsic value \| €	€ 468,492
Exercise price, Lower range (in EUR per share)	€ 3.22
Range 3 [Member]
Outstanding options - Number (in shares) \| shares	145,000
Outstanding options - Weighted average remaining contractual life (Year)	7 years 8 months 12 days
Outstanding options - Weighted average exercise price (in EUR per share)	€ 2.65
Outstanding options - Aggregate intrinsic value \| €	€ 228,739
Exercisable options - Number (in shares) \| shares	72,500
Exercisable options - Weighted average exercise price (in EUR per share)	€ 2.65
Exercisable options - Aggregate intrinsic value \| €	€ 114,369
Exercise price, Lower range (in EUR per share)	€ 2.65
Range 4 [member]
Outstanding options - Number (in shares) \| shares	184,400
Outstanding options - Weighted average remaining contractual life (Year)	6 years 3 months 18 days
Outstanding options - Weighted average exercise price (in EUR per share)	€ 2.39
Outstanding options - Aggregate intrinsic value \| €	€ 338,837
Exercisable options - Number (in shares) \| shares	138,150
Exercisable options - Weighted average exercise price (in EUR per share)	€ 2.39
Exercisable options - Aggregate intrinsic value \| €	€ 253,852
Exercise price, Lower range (in EUR per share)	€ 2.39
Range 5 [Member]
Outstanding options - Number (in shares) \| shares	262,500
Outstanding options - Weighted average remaining contractual life (Year)	2 years
Outstanding options - Weighted average exercise price (in EUR per share)	€ 1.91
Outstanding options - Aggregate intrinsic value \| €	€ 608,346
Exercisable options - Number (in shares) \| shares	262,500
Exercisable options - Weighted average exercise price (in EUR per share)	€ 1.91
Exercisable options - Aggregate intrinsic value \| €	€ 608,346
Exercise price, Lower range (in EUR per share)	€ 1.91

SHAREHOLDERS' EQUITY - Non-vested Options Activity (Details) - € / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
SHAREHOLDERS' EQUITY
Non-vested options outstanding (in shares)	455,000	575,000	593,750
Non-vested options outstanding, weighted average grant-date fair value (in EUR per share)	€ 1.58	€ 1.47	€ 1.53
Non-vested options granted (in shares)	0	155,000	165,000
Non-vested options granted, weighted average grant-date fair value (in EUR per share)	€ 0	€ 1.93	€ 1.33
Non-vested options vested (in shares)	(235,000)	(204,000)	(180,000)
Non-vested options vested, weighted average grant-date fair value (in EUR per share)	€ 1.58	€ 1.52	€ 1.56
Non-vested options forfeited (in shares)	(3,750)	(70,600)	(3,750)
Non-vested options forfeited, weighted average grant-date fair value (in EUR per share)	€ 1.54	€ 1.58	€ 1.29
Non-vested options outstanding (in shares)	216,250	455,000	575,000
Non-vested options outstanding, weighted average grant-date fair value (in EUR per share)	€ 1.59	€ 1.58	€ 1.47

SHAREHOLDERS' EQUITY - Components of Accumulated Other Comprehensive Income (Loss) Net of Tax (Details) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Balance	€ 27,359	€ 24,964
Balance	26,248	27,359
Accumulated Foreign Currency Adjustment Attributable to Parent [Member]
Balance	(3,234)	(3,173)
Net current-period other comprehensive income (loss)	410	(61)
Balance	(2,824)	(3,234)
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]
Balance	(203)	(577)
Net current-period other comprehensive income (loss)	(38)	374
Balance	(241)	(203)
Other comprehensive income (loss)
Balance	(3,436)	(3,748)
Net current-period other comprehensive income (loss)	372	313
Balance	€ (3,064)	€ (3,436)

- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

+ References + Details

TOTAL SALES - Sales by Geographical Area (Details) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Revenues	€ 41,649	€ 44,859	€ 39,163
Asia [Member]
Revenues	15,872	17,939	14,119
France
Revenues	10,021	11,350	11,577
USA
Revenues	5,611	5,194	2,048
Other geographical Areas [Member]
Revenues	€ 10,146	€ 10,377	€ 11,419

- Definition

Amount, including tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value-added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

TOTAL SALES - Timing of Revenue Recognition (Details) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Revenues	€ 41,649	€ 44,859	€ 39,163
Products transferred at a point in time
Revenues	32,862	36,767	31,373
Products and services transferred over time
Revenues	€ 8,787	€ 8,092	€ 7,790

- Definition

+ References

+ Details

OTHER REVENUES - Other Revenues (Details) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Other revenues:
Revenues	€ 41,649	€ 44,859	€ 39,163
Other revenues
Other revenues:
Revenues	12	52	19
Licenses and others
Other revenues:
Revenues	€ 12	€ 52	€ 19

- Definition

+ References

+ Details

COSTS OF SALES - Schedule of Costs of Sales (Details) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
COSTS OF SALES
Direct costs of sales	€ (14,058)	€ (14,919)	€ (13,683)
Indirect costs of sales	(9,225)	(8,990)	(8,583)
Total cost of sales	€ (23,283)	€ (23,909)	€ (22,266)

RESEARCH AND DEVELOPMENT EXPENSES - Research and Development Expenses (Details) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
RESEARCH AND DEVELOPMENT EXPENSES
Gross research and development expenses	€ (5,173)	€ (4,727)	€ (4,863)
Research Tax Credit	492	762	685
Grants	184	236	90
Net Research and development expenses	€ (4,496)	€ (3,728)	€ (4,088)

FINANCIAL INCOME, NET - Schedule of Financial Income (Expense) (Details) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
FINANCIAL INCOME, NET
Interest income	€ 10	€ 20	€ 19
Interest expense	(108)	(165)	(111)
Warrants exercised / forfeited			889
Financial income (expense), net	€ (98)	€ (146)	€ 797

INCOME TAXES (Details) € in Thousands, $ in Thousands	12 Months Ended
INCOME TAXES (Details) € in Thousands, $ in Thousands	Dec. 31, 2022	Dec. 31, 2020 EUR (€)	Dec. 31, 2018 USD ($)	Dec. 31, 2017
Operating Loss Carryforwards, Total		€ 59,052
Deferred Tax Assets, Operating Loss Carryforwards, Foreign		14,014
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration		€ 57,168
U.S Subsidiary Taxable Net Income Subject to Lower Taxes with New Tax Law, Minimum \| $			$ 100
Effective Income Tax Rate Reconciliation, at French Corporate Income Tax Rate, Percent		28.00%
Forecast [Member]
Effective Income Tax Rate Reconciliation, at French Corporate Income Tax Rate, Percent	25.00%
Foreign Tax Authority [Member]
Operating Loss Carryforwards, Total		€ 59,052
Foreign Tax Authority [Member] \| Internal Revenue Service (IRS) [Member]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent			21.00%
Foreign Tax Authority [Member] \| Minimum \| Internal Revenue Service (IRS) [Member]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent				15.00%
Foreign Tax Authority [Member] \| Maximum \| Internal Revenue Service (IRS) [Member]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent				39.00%
Foreign Tax Authority [Member] \| EDAP TMS S.A. [Member]
Operating Loss Carryforwards, Total		34,225
Foreign Tax Authority [Member] \| EDAP Technomed Inc. [Member]
Operating Loss Carryforwards, Total		21,134
Foreign Tax Authority [Member] \| Edap Technomed Co Ltd Japan [Member]
Operating Loss Carryforwards, Total		1,884
Foreign Tax Authority [Member] \| EDAP Technomed Italia S.R.L. [Member]
Operating Loss Carryforwards, Total		1,789
Foreign Tax Authority [Member] \| EDAP TMS GMBH [Member]
Operating Loss Carryforwards, Total		€ 20

INCOME TAXES - Income (Loss) Before Income Taxes (Details) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income (loss)	€ (1,188)	€ 2,191	€ 20
France
Income (loss)	(2,042)	1,803	1,687
Other countries
Income (loss)	€ 854	€ 388	€ (1,667)

INCOME TAXES - Income Tax Benefit (Expense) (Details) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Current income tax expense	€ (471)	€ (787)	€ (515)
Deferred income tax (expense) benefit	(45)	108	157
Total	(516)	(679)	(358)
France
Current income tax expense	(158)	(237)	(163)
Deferred income tax (expense) benefit	8	(1)	2
Other countries
Current income tax expense	(312)	(550)	(351)
Deferred income tax (expense) benefit	€ (53)	€ 109	€ 155

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
INCOME TAXES
Net operating loss carry forwards	$ 14,014	$ 13,642
Elimination of intercompany profit in inventory	161	269
Elimination of intercompany profit in fixed assets	244	349
Provisions for retirement indemnities	634	577
Capital leases treated as operating leases for tax, asset	56
Capital leases treated as operating leases for tax, liability		29
Other items	775	544
Total deferred tax assets	15,883	15,410
Net deferred tax assets	15,883	15,410
Valuation allowance for deferred tax assets	(15,508)	(14,977)
Deferred tax assets (liabilities), net of allowance	$ 374	$ 432

INCOME TAXES - Effective Tax Rate Reconciliation (Details) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
INCOME TAXES
Effective income / (loss) tax at French statutory tax rate	€ 333	€ (614)	€ (6)
Income of foreign subsidiaries taxed at different tax rates	9	(51)	(124)
Effect of net operating loss carry-forwards and valuation allowances	(858)	189	(210)
Non-taxable debt fair value variation			235
Permanent differences	(159)	(251)	(392)
Effect of cancellation of intra-group positions	152	(54)	35
French business tax included in income tax (CVAE)	(156)	(159)	(161)
Other	164	263	265
Effective income (loss) tax	€ (516)	€ (679)	€ (358)

EARNINGS (LOSS) PER SHARE - Schedule of Earnings Per Share, Basic and Diluted (Details) - EUR (€) € / shares in Units, € in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
EARNINGS (LOSS) PER SHARE
Net income (loss)	€ (1,704)	€ 1,512	€ (338)
Number of shares for the computation of basic EPS (in shares)	29,148,108	29,016,118	28,997,866
Basic EPS (in Euros)	€ (0.06)	€ 0.05	€ (0.01)
Effect of dilutive securities (in shares)	622,723	604,238	347,500
Number of shares for the computation of diluted EPS	29,148,108	29,615,466	28,997,866
Diluted EPS income / (loss) (in Euros)	€ (0.06)	€ 0.05	€ (0.01)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

FAIR VALUE OF FINANCIAL INSTRUMENTS - Schedule of Fair Value Measurement Inputs Level 1 (Details) - EUR (€) € in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Assets:
Cash and cash equivalents	€ 24,696	€ 20,886	€ 19,464	€ 20,004
Liabilities:
Short-term borrowings	2,638	3,513
Long-Term Debt	5,675	1,420
Fair Value, Inputs, Level 1 [Member]
Assets:
Cash and cash equivalents	24,696	20,886
Liabilities:
Short-term borrowings	2,638	3,513
Long-Term Debt	€ 5,675	€ 1,420

CONCENTRATION OF CREDIT RISK (Details) - EUR (€) € in Millions	Dec. 31, 2020	Dec. 31, 2019
CONCENTRATION OF CREDIT RISK
Allowance for doubtful accounts receivable	€ 0.7	€ 1.5

SEGMENT INFORMATION (Details)	12 Months Ended
SEGMENT INFORMATION (Details)	Dec. 31, 2020 segment
SEGMENT INFORMATION
Reportable segments	3

SEGMENT INFORMATION - Reconciliation of Operating Profit (Loss) From Segments to Consolidated (Details) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
SEGMENT INFORMATION
Segment operating income (loss)	€ 269	€ 2,201	€ (1,315)
Financial income (expense), net	(98)	(146)	797
Foreign Currency exchange (losses) gains, net	(1,359)	136	538
Total	(516)	(679)	(358)
Net income (loss)	€ (1,704)	€ 1,512	€ (338)

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

SEGMENT INFORMATION - Schedule of Segment Reporting Information By Segment (Details) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Revenues	€ 41,662	€ 44,912	€ 39,183
Cost of sales	(23,283)	(23,909)	(22,266)
Gross profit	18,379	21,002	16,917
Research and development expenses	(4,496)	(3,728)	(4,088)
Selling and marketing expenses	(9,279)	(10,850)	(10,551)
General and administrative expenses	(4,335)	(4,224)	(3,593)
Segment operating income (loss)	269	2,201	(1,315)
Total Assets	55,193	53,068
Goodwill	2,412	2,412
Product
Revenues	41,649	44,859	39,163
RPP's and leases
Revenues	4,745	5,747	5,086
Cost of sales	(2,601)	(3,000)	(2,557)
Spare parts and services
Revenues	9,382	9,001	9,007
Cost of sales	(5,732)	(5,467)	(5,655)
FDA [Member]
Revenues	41,662	44,912	39,183
Cost of sales	(23,283)	(23,909)	(22,266)
Gross profit	18,379	21,002	16,917
Research and development expenses	(4,496)	(3,728)	(4,088)
Selling and marketing expenses	(9,279)	(10,850)	(10,551)
General and administrative expenses	(4,335)	(4,224)	(3,593)
Total expenses	(18,110)	(18,802)	(18,232)
Segment operating income (loss)	269	2,201	(1,316)
Total Assets	55,193	53,068	48,740
Capital expenditures	2,011	1,532	1,928
Long-lived assets	9,801	10,971	8,013
Goodwill	2,412	2,412	2,412
FDA [Member] \| Product
Revenues	27,523	30,111	25,070
FDA [Member] \| RPP's and leases
Revenues	4,745	5,747	5,086
FDA [Member] \| Spare parts and services
Revenues	9,382	9,001	9,007
FDA [Member] \| Product and Services, Excluding Other
Revenues	41,649	44,859	39,163
FDA [Member] \| Other revenues
Revenues	12	52	19
Operating Segments \| High Intensity Focused Ultrasound (HIFU)
Revenues	11,438	14,144	11,044
Cost of sales	(5,144)	(6,152)	(5,312)
Gross profit	6,293	7,991	5,732
Research and development expenses	(2,583)	(1,962)	(2,394)
Selling and marketing expenses	(3,151)	(4,402)	(4,628)
General and administrative expenses	(1,005)	(1,168)	(1,036)
Total expenses	(6,738)	(7,533)	(8,057)
Segment operating income (loss)	(445)	459	(2,325)
Total Assets	16,279	16,665	13,648
Capital expenditures	1,144	915	1,154
Long-lived assets	3,706	4,096	2,855
Goodwill	645	645	645
Operating Segments \| High Intensity Focused Ultrasound (HIFU) \| Product
Revenues	6,000	8,311	5,494
Operating Segments \| High Intensity Focused Ultrasound (HIFU) \| RPP's and leases
Revenues	3,594	4,162	3,750
Operating Segments \| High Intensity Focused Ultrasound (HIFU) \| Spare parts and services
Revenues	1,831	1,618	1,780
Operating Segments \| High Intensity Focused Ultrasound (HIFU) \| Product and Services, Excluding Other
Revenues	11,425	14,092	11,025
Operating Segments \| High Intensity Focused Ultrasound (HIFU) \| Other revenues
Revenues	12	52	19
Operating Segments \| Urology Devices and Services (ESWL)
Revenues	12,882	14,190	14,480
Cost of sales	(7,232)	(7,816)	(8,178)
Gross profit	5,649	6,374	6,302
Research and development expenses	(1,555)	(1,394)	(1,410)
Selling and marketing expenses	(2,052)	(2,441)	(2,357)
General and administrative expenses	(964)	(904)	(731)
Total expenses	(4,572)	(4,738)	(4,498)
Segment operating income (loss)	1,078	1,635	1,804
Total Assets	15,567	15,892	16,700
Capital expenditures	309	298	451
Long-lived assets	2,466	4,448	3,697
Goodwill	496	450	403
Operating Segments \| Urology Devices and Services (ESWL) \| Product
Revenues	6,248	6,715	7,069
Operating Segments \| Urology Devices and Services (ESWL) \| RPP's and leases
Revenues	927	1,426	1,254
Operating Segments \| Urology Devices and Services (ESWL) \| Spare parts and services
Revenues	5,707	6,048	6,157
Operating Segments \| Urology Devices and Services (ESWL) \| Product and Services, Excluding Other
Revenues	12,882	14,190	14,480
Operating Segments \| Distribution (DISTRIB) Division [Member]
Revenues	17,342	16,578	13,657
Cost of sales	(10,906)	(9,941)	(8,775)
Gross profit	6,436	6,637	4,882
Research and development expenses	(358)	(372)	(285)
Selling and marketing expenses	(4,076)	(4,008)	(3,566)
General and administrative expenses	(900)	(854)	(580)
Total expenses	(5,335)	(5,233)	(4,431)
Segment operating income (loss)	1,102	1,404	451
Total Assets	20,795	16,500	13,149
Capital expenditures	557	319	324
Long-lived assets	3,628	2,427	1,462
Goodwill	1,271	1,317	1,364
Operating Segments \| Distribution (DISTRIB) Division [Member] \| Product
Revenues	15,274	15,084	12,505
Operating Segments \| Distribution (DISTRIB) Division [Member] \| RPP's and leases
Revenues	224	158	82
Operating Segments \| Distribution (DISTRIB) Division [Member] \| Spare parts and services
Revenues	1,844	1,335	1,070
Operating Segments \| Distribution (DISTRIB) Division [Member] \| Product and Services, Excluding Other
Revenues	17,342	16,578	13,657
Reconciling Items \| EDAP Technomed Co Ltd. [Member]
General and administrative expenses	(1,465)		(1,247)
Total expenses	(1,465)		(1,247)
Segment operating income (loss)	(1,465)		(1,247)
Total Assets	€ 2,551	€ 4,012	€ 5,243

VALUATION ACCOUNTS (Details) - EUR (€) € in Thousands	12 Months Ended
VALUATION ACCOUNTS (Details) - EUR (€) € in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset [Member]
Balance	€ 14,977	€ 14,553	€ 14,266
Charges to costs and expenses	596	859	515
Deductions: write-off and others	(65)	(435)	(228)
Balance	15,508	14,977	14,553
SEC Schedule, 12-09, Allowance, Credit Loss [Member]
Balance	1,490	1,404	1,029
Charges to costs and expenses	90	94	365
Deductions: write-off and others	(858)	(9)	10
Balance	722	1,490	1,404
SEC Schedule, 12-09, Reserve, Inventory [Member]
Balance	1,085	974	723
Charges to costs and expenses	651	333	355
Deductions: write-off and others	(172)	(223)	(104)
Balance	1,563	1,085	974
SEC Schedule, 12-09, Reserve, Warranty [Member]
Balance	370	548	449
Charges to costs and expenses	266	131	433
Deductions: write-off and others	(268)	(308)	(334)
Balance	€ 368	€ 370	€ 548

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION (Details) - EUR (€) € in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Income taxes paid (refunds received)	€ 377	€ 289	€ 407
Interest paid	124	87	49
Interest received	10	17	12
Financing lease obligations incurred	192	203	427
Operating lease obligations incurred	317	3,483
Operating cash flow used in operating leases	941
Operating cash flow used in finance leases	18
Financing cash flow used in finance leases	€ 321	€ 396	€ 358

RELATED PARTY TRANSACTIONS (Details) € in Thousands	Dec. 31, 2020 EUR (€)	Apr. 22, 2020 JPY (¥)	Dec. 31, 2019 EUR (€)	Aug. 19, 2019 JPY (¥)	Aug. 02, 2019 USD ($)	Mar. 27, 2019 MYR (RM)
Related Party Transaction [Line Items]
Operating lease, liability \| €			€ 2,684
Loans Payable [Member]
Related Party Transaction [Line Items]
Loan amount \| €	€ 6,000
EDAP Technomed Co Ltd. [Member] \| JAPAN
Related Party Transaction [Line Items]
Loan amount \| ¥		¥ 50,000,000
EDAP Technomed Co Ltd. [Member] \| JAPAN \| Loans Payable [Member]
Related Party Transaction [Line Items]
Loan amount \| ¥				¥ 80,000,000
EDAP Technomed Sdn Bdh [Member] \| Malaysia \| Loans Payable [Member]
Related Party Transaction [Line Items]
Loan amount \| RM						RM 65,464.85
EDAP Technomed Inc. [Member] \| Car Lease Required Personal Warranty [Member] \| President [Member]
Related Party Transaction [Line Items]
Operating lease, liability \| $					$ 28,756.44