Business Segments

3 Months Ended

Mar. 31, 2022

Business Segments [Abstract]

Business Segments

Note 12

Business Segments:

The Company has organized its business into two 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 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) are also not allocated to the operating segments.

The following tables reflect results of operations from the Company’s business segments for the periods indicated below:

Three Months Ended March 31, 2022

	Dermatology Recurring Procedures			Dermatology Procedures Equipment			TOTAL
Revenues, net	$	5,067		$	1,974		$	7,041
Costs of revenues		2,032			881			2,913
Gross profit		3,035			1,093			4,128
Gross profit %		59.9	%		55.4	%		58.6	%
Allocated operating expenses:
Engineering and product development		126			37			163
Selling and marketing		3,300			316			3,616
Unallocated operating expenses		-			-			2,652
		3,426			353			6,431
(Loss) income from operations		(391	)		740			(2,303	)
Interest expense		-			-			(199	)
(Loss) income before income taxes	$	(391	)	$	740		$	(2,502	)

Three Months Ended March 31, 2021

	Dermatology Recurring Procedures			Dermatology Procedures Equipment			TOTAL
Revenues, net	$	4,679		$	1,148		$	5,827
Costs of revenues		1,501			613			2,114
Gross profit		3,178			535			3,713
Gross profit %		67.9	%		46.6	%		63.7	%
Allocated operating expenses:
Engineering and product development		361			23			384
Selling and marketing		2,802			130			2,932
Unallocated operating expenses		-			-			2,789
		3,163			153			6,105
Income (loss) from operations		15			382			(2,392	)
Interest expense		-			-			(30	)
Interest income		-			-			8
Income (loss) before income taxes	$	15		$	382		$	(2,414	)

The following tables present the Company’s revenue disaggregated by geographical region for the three months ended March 31, 2022 and 2021, respectively. Domestic refers to revenue from customers based in the United States, and foreign recurring revenue is derived from sales to the Company’s distributors, primarily in Asia.

Three Months Ended March 31, 2022

	Dermatology Recurring Procedures		Dermatology Procedures Equipment		TOTAL
Domestic	$	4,689	$	695	$	5,384
Foreign		378		1,279		1,657
Total	$	5,067	$	1,974	$	7,041

Three Months Ended March 31, 2021

	Dermatology Recurring Procedures		Dermatology Procedures Equipment		TOTAL
Domestic	$	4,426	$	258	$	4,684
Foreign		253		890		1,143
Total	$	4,679	$	1,148	$	5,827