Business Segments

9 Months Ended

Sep. 30, 2020

Business Segments [Abstract]

Business Segments

Note 13

Business Segments:

The Company has organized its business into two operating segments to present 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 usage of its equipment by dermatologists to perform XTRAC procedures. The Dermatology Procedures Equipment segment generates revenues from the sale of equipment, such as lasers and lamp products. 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 September 30, 2020

	Dermatology Recurring Procedures			Dermatology Procedures Equipment			TOTAL
Revenues	$	3,835		$	1,778		$	5,613
Costs of revenues		1,368			1,015			2,383
Gross profit		2,467			763			3,230
Gross profit %		64.3	%		42.9	%		57.5	%
Allocated operating expenses:
Engineering and product development		329			82			411
Selling and marketing		1,883			168			2,051
Unallocated operating expenses		-			-			1,929
		2,212			250			4,391
Income (loss) from operations		255			513			(1,161	)
Interest expense, net		-			-			(21	)
Income (loss) before income taxes	$	255		$	513		$	(1,182	)

Nine Months Ended September 30, 2020

	Dermatology Recurring Procedures			Dermatology Procedures Equipment			TOTAL
Revenues	$	12,332		$	4,041		$	16,373
Costs of revenues		4,534			2,246			6,780
Gross profit		7,798			1,795			9,593
Gross profit %		63.2	%		44.4	%		58.6	%
Allocated operating expenses:
Engineering and product development		828			122			950
Selling and marketing		6,021			425			6,446
Unallocated operating expenses		-			-			5,921
		6,849			547			13,317
Income (loss) from operations		949			1,248			(3,724	)
Interest expense, net		-			-			(38	)
Income (loss) before income taxes	$	949		$	1,248		$	(3,762	)

Three Months Ended September 30, 2019

	Dermatology Recurring Procedures			Dermatology Procedures Equipment			TOTAL
Revenues	$	5,991		$	1,489		$	7,480
Costs of revenues		1,966			889			2,855
Gross profit		4,025			600			4,625
Gross profit %		67.2	%		40.3	%		61.8	%
Allocated operating expenses:
Engineering and product development		226			23			249
Selling and marketing		2,762			125			2,887
Unallocated operating expenses		-			-			2,218
		2,988			148			5,354
Income (loss) from operations		1,037			452			(729	)
Interest expense, net		-			-			(153	)
Income (loss) before income taxes	$	1,037		$	452		$	(882	)

Nine Months Ended September 30, 2019

	Dermatology Recurring Procedures			Dermatology Procedures Equipment			TOTAL
Revenues	$	17,142		$	5,546		$	22,688
Costs of revenues		5,492			3,052			8,544
Gross profit		11,650			2,494			14,144
Gross profit %		68.0	%		45.0	%		62.3	%
Allocated operating expenses:
Engineering and product development		666			122			788
Selling and marketing		8,301			610			8,911
Unallocated operating expenses		-			-			7,398
		8,967			732			17,097
Income (loss) from operations		2,683			1,762			(2,953	)
Interest expense, net		-			-			(433	)
Income (loss) before income taxes	$	2,683		$	1,762		$	(3,386	)