Business Segments

6 Months Ended

Jun. 30, 2021

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 June 30, 2021

	Dermatology Recurring Procedures			Dermatology Procedures Equipment			TOTAL
Revenues	$	5,452		$	1,930		$	7,382
Costs of revenues		1,635			986			2,621
Gross profit		3,817			944			4,761
Gross profit %		70.0	%		48.9	%		64.5	%
Allocated operating expenses:
Engineering and product development		319			84			403
Selling and marketing		2,909			251			3,160
Unallocated operating expenses		-			-			2,121
		3,228			335			5,684
Income (loss) from operations		589			609			(923	)
Gain on extinguishment of debt		-			-			2,028
Interest expense, net		-			-			(19	)
	$	589		$	609		$	1,086

Six Months Ended June 30, 2021

	Dermatology Recurring Procedures			Dermatology Procedures Equipment			TOTAL
Revenues	$	10,131		$	3,078		$	13,209
Costs of revenues		3,136			1,599			4,735
Gross profit		6,995			1,479			8,474
Gross profit %		69.0	%		48.1	%		64.2	%
Allocated operating expenses:
Engineering and product development		680			107			787
Selling and marketing		5,711			381			6,092
Unallocated operating expenses		-			-			4,910
		6,391			488			11,789
Income (loss) from operations		604			991			(3,315	)
Gain on extinguishment of debt		-			-			2,028
Interest expense, net		-			-			(41	)
Income (loss) before income taxes	$	604		$	991		$	(1,328	)

Three Months Ended June 30, 2020

	Dermatology Recurring Procedures			Dermatology Procedures Equipment			TOTAL
Revenues	$	2,796		$	1,234		$	4,030
Costs of revenues		1,364			702			2,066
Gross profit		1,432			532			1,964
Gross profit %		51.2	%		43.1	%		48.7	%
Allocated operating expenses:
Engineering and product development		225			22			247
Selling and marketing		1,341			101			1,442
Unallocated operating expenses		-			-			1,890
		1,566			123			3,579
Income (loss) from operations		(134	)		409			(1,615	)
Interest expense, net		-			-			(18	)
Income (loss) before income taxes	$	(134	)	$	409		$	(1,633	)

Six Months Ended June 30, 2020

	Dermatology Recurring Procedures			Dermatology Procedures Equipment			TOTAL
Revenues	$	8,497		$	2,263		$	10,760
Costs of revenues		3,166			1,231			4,397
Gross profit		5,331			1,032			6,363
Gross profit %		62.7	%		45.6	%		59.1	%
Allocated operating expenses:
Engineering and product development		499			40			539
Selling and marketing		4,138			257			4,395
Unallocated operating expenses		-			-			3,992
		4,637			297			8,926
Income (loss) from operations		694			735			(2,563	)
Interest expense, net		-			-			(17	)
Income (loss) before income taxes	$	694		$	735		$	(2,580	)