Business Segments and Geographic Data

3 Months Ended

Mar. 31, 2017

Business Segments and Geographic Data [Abstract]

Business Segments and Geographic Data

Note 12

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 generated revenues from the sale and usage of imaging devices. The Company has announced that it will no longer support the imaging devices effective September 30, 2017 thus there will be minimal continuing revenues for this segment. Management reviews financial information presented on an operating segment basis for the purposes of making certain operating decisions and assessing financial performance.

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, 2017 (unaudited)

	Dermatology Recurring Procedures			Dermatology Procedures Equipment			Dermatology Imaging			TOTAL
Revenues	$	5,731		$	1,537		$	4		$	7,272
Costs of revenues		2,042			691			-			2,733
Gross profit		3,689			846			4			4,539
Gross profit %		64.4	%		55.0	%		100.0	%		62.4	%
Allocated operating expenses:
Engineering and product development		416			58			1			475
Selling and marketing expenses		2,948			202			-			3,150
Unallocated operating expenses		-			-			-			1,601
		3,364			260			1			5,226
Income (loss) from operations		325			586			3			(687	)
Interest expense, net		-			-			-			(1,346	)
Change in fair value of warrant liability		-			-			-			(132	)
Income (loss) before income taxes	$	325		$	586		$	3		$	(2,165	)

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
Loss from operations		(597	)		869			(309	)		(2,138	)
Interest expense, net		-			-			-			(1,218	)
Change in fair value of warrant liability		-			-			-			1,985
Net loss	$	(597	)	$	869		$	(309	)	$	(1,371	)

For the three months ended March 31, 2017 and 2016 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,
	2017		2016
Domestic	$	6,189	$	5,622
Foreign		1,083		1,998
	$	7,272	$	7,620

Long-lived assets were 100% located in domestic markets as of March 31, 2017 and December 31, 2016.