Business Segments and Geographic Data

3 Months Ended

Mar. 31, 2016

Business Segments and Geographic Data [Abstract]

Business Segments and Geographic Data

Note 14

Business Segments and Geographic Data:

The Company organized its business into three operating segments to better align its organization based upon the Company's management structure, products and services offered, markets served and types of customers, as follows: The Dermatology Recurring Procedures segment derives its revenues from the XTRAC procedures performed by dermatologists. The Dermatology Procedures Equipment segment generates revenues from the sale of equipment, such as lasers and lamp products. The Dermatology Imaging segment generates revenues from the sale and usage of imaging devices. Management reviews financial information presented on an operating segment basis for the purposes of making certain operating decisions and assessing financial performance. On June 22, 2015, the Company acquired the XTRAC and VTRAC businesses and has classified the revenues and expenses of this business to the two Dermatology Procedures segments. There are no corresponding revenues for the three months ended March 31, 2015.

Unallocated operating expenses include costs that are not specific to a particular segment but are general to the group; included are expenses incurred for administrative and accounting staff, general liability and other insurance, professional fees and other similar corporate expenses. Interest and other financing income (expense), net is also not allocated to the operating segments.

The following tables reflect results of operations from our business segments for the periods indicated below:

Three Months Ended March 31, 2016 (unaudited)

	Dermatology Recurring Procedures			Dermatology Procedures Equipment			Dermatology Imaging			TOTAL
Revenues	$	5,528		$	1,990		$	102		$	7,620
Costs of revenues		2,304			951			167			3,422
Gross profit		3,224			1,039			( 65	)		4,198
Gross profit %		58.3	%		52.2	%		(63.7	%)		55.1	%
Allocated operating expenses:
Engineering and product development		311			62			152			525
Selling and marketing expenses		3,510			108			92			3,710
Unallocated operating expenses		-			-			-			2,101
		3,821			170			244			6,336
Income (loss) from operations		(597	)		869			(309	)		(2,138	)
Interest expense, net		-			-			-			(1,218	)
Change in fair value of warrant liability		-			-			-			1,985
Other income (expense), net		-			-			-			-
Income (loss) before income taxes	$	(597	)	$	869		$	(309	)	$	(1,371	)

Three Months Ended March 31, 2015 (unaudited)

	Dermatology Recurring Procedures			Dermatology Procedures Equipment			Dermatology Imaging			TOTAL
Revenues	$	-		$	-		$	81		$	81
Costs of revenues		-			-			711			711
Gross profit		-			-			(630	)		(630	)
Gross profit %		0.0	%		0.0	%		(777.8	%)		(777.8	%)
Allocated operating expenses:
Engineering and product development		-			-			239			239
Selling and marketing expenses		-			-			1,027			1,027
Unallocated operating expenses		-			-			-			1,736
		-			-			1,266			3,002
Loss from operations		-			-			(1,896	)		(3,632	)
Interest expense, net		-			-						(2,324	)
Change in fair value of warrant liability		-			-			-			(1,334	)
Other income (expense), net		-			-			-			18
Net loss	$	-		$	-		$	(1,896	)	$	(7,272	)

For the three months ended March 31, 2016 and 2015 there were no material net revenues attributable to any individual foreign country. Net revenues by geographic area were, as follows:

	Three Months Ended March 31,
	2016		2015
Domestic	$	5,622	$	38
Foreign		1,998		43
	$	7,620	$	81