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 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 expense and other income (expense), net are 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, 2018 (unaudited)

	Dermatology Recurring Procedures			Dermatology Procedures Equipment			TOTAL
Revenues	$	4,498		$	1,968		$	6,466
Costs of revenues		1,949			1,346			3,295
Gross profit		2,549			622			3,171
Gross profit %		56.7	%		31.6	%		49.0	%

Allocated operating expenses:
Engineering and product development		274			64			338
Selling and marketing expenses		2,216			655			2,871

Unallocated operating expenses		-			-			1,803
		2,490			719			5,012
Income (loss) from operations		59			(97	)		(1,841	)

Interest expense, net		-			-			(363	)
Other income, net		-			-			21

Income (loss) before income taxes	$	59		$	(97	)	$	(2,183	)

Three Months Ended March 31, 2017 (unaudited)

	Dermatology Recurring Procedures			Dermatology Procedures Equipment			Dermatology Imaging			TOTAL
Revenues	$	5,556		$	1,537		$	4		$	7,097
Costs of revenues		2,042			691			-			2,733
Gross profit		3,514			846			4			4,364
Gross profit %		63.2	%		55.0	%		100.0	%		61.5	%

Allocated operating expenses:
Engineering and product development		416			58			1			475
Selling and marketing expenses		2,773			202			-			2,975

Unallocated operating expenses		-			-			-			1,601
		3,189			260			1			5,051
Income (loss) from operations		325			586			3			(687	)

Interest expense, net		-			-			-			(1,346	)
Other expense, net		-			-			-			(132	)

Income (loss) before income taxes	$	325		$	586		$	3		$	(2,165	)

For the three months ended March 31, 2018 and 2017 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,
	2018		2017
Domestic	$	5,155	$	6,014
Foreign		1,311		1,083
	$	6,466	$	7,097

Long-lived assets were 100% located in domestic markets as of March 31, 2018 and December 31, 2017.