Business Segments and Geographic Data

6 Months Ended

Jun. 30, 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 June 30, 2017 (unaudited)

	Dermatology Recurring Procedures			Dermatology Procedures Equipment			Dermatology Imaging			TOTAL
Revenues	$	6,202		$	2,496		$	4		$	8,702
Costs of revenues		1,843			1,330			-			3,173
Gross profit		4,359			1,166			4			5,529
Gross profit %		70.3	%		46.7	%		100.0	%		63.5	%
Allocated operating expenses:
Engineering and product development		340			83			-			423
Selling and marketing expenses		2,561			516			-			3,077
Unallocated operating expenses		-			-			-			1,720
		2,901			599			-			5,220
Income from operations		1,458			567			4			309
Interest expense, net		-			-			-			(1,575	)
Change in fair value of warrant liability		-			-			-			128
Other income, net		-			-			-			6
Income (loss) before income taxes	$	1,458		$	567		$	4		$	(1,132	)

Three Months Ended June 30, 2016 (unaudited)

	Dermatology Recurring Procedures			Dermatology Procedures Equipment			Dermatology Imaging			TOTAL
Revenues	$	6,093		$	1,634		$	12		$	7,739
Costs of revenues		2,258			812			69			3,139
Gross profit		3,835			822			( 57	)		4,600
Gross profit %		63.0	%		50.3	%		(475.0	%)		59.4	%
Allocated operating expenses:
Engineering and product development		323			54			257			634
Selling and marketing expenses		3,349			96			78			3,523
Unallocated operating expenses		-			-			-			1,901
		3,672			150			335			6,058
Income (loss) from operations		163			672			(392	)		(1,458	)
Interest expense, net		-			-			-			(1,178	)
Change in fair value of warrant liability		-			-			-			3,199
Other income (expense), net		-			-			-			(4	)
Income (loss) before income taxes	$	163		$	672		$	(392	)	$	559

Six Months Ended June 30, 2017 (unaudited)

	Dermatology Recurring Procedures			Dermatology Procedures Equipment			Dermatology Imaging			TOTAL
Revenues	$	11,933		$	4,033		$	8		$	15,974
Costs of revenues		3,885			2,021			-			5,906
Gross profit		8,048			2,012			8			10,068
Gross profit %		67.4	%		49.9	%		100.0	%		63.0	%
Allocated operating expenses:
Engineering and product development		756			141			1			898
Selling and marketing expenses		5,510			717			-			6,227
Unallocated operating expenses		-			-			-			3,321
		6,266			858			1			10,446
Income (loss) from operations		1,782			1,154			7			(378	)
Interest expense, net		-			-			-			(2,921	)
Change in fair value of warrant liability		-			-			-			(4	)
Other income, net		-			-			-			6
Income (loss) before income taxes	$	1,782		$	1,154		$	7		$	(3,297	)

Six Months Ended June 30, 2016 (unaudited)

	Dermatology Recurring Procedures			Dermatology Procedures Equipment			Dermatology Imaging			TOTAL
Revenues	$	11,621		$	3,624		$	114		$	15,359
Costs of revenues		4,561			1,764			236			6,561
Gross profit		7,060			1,860			( 122	)		8,798
Gross profit %		60.8	%		51.3	%		(107.0	%)		57.3	%
Allocated operating expenses:
Engineering and product development		634			116			409			1,159
Selling and marketing expenses		6,860			203			170			7,233
Unallocated operating expenses		-			-			-			4,002
		7,494			319			579			12,394
Income (loss) from operations		(434	)		1,541			(701	)		(3,596	)
Interest expense, net		-			-			-			(2,396	)
Change in fair value of warrant liability		-			-			-			5,184
Other income (expense), net		-			-			-			(4	)
Income (loss) before income taxes	$	(434	)	$	1,541		$	(701	)	$	(812	)

For the three and six months ended June 30, 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 June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
Domestic	$	7,086	$	6,265	$	13,275	$	12,158
Foreign		1,616		1,474		2,699		3,201
	$	8,702	$	7,739	$	15,974	$	15,359

Long-lived assets were 100% located in domestic markets as of June 30, 2017 and December 31, 2016.