Business Segments

6 Months Ended

Jun. 30, 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 and other financing 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 June 30, 2022

	Dermatology Recurring Procedures			Dermatology Procedures Equipment			TOTAL
Revenues, net	$	5,582		$	3,523		$	9,105
Costs of revenues		2,298			1,814			4,112
Gross profit		3,284			1,709			4,993
Gross profit %		58.8	%		48.5	%		54.8	%
Allocated operating expenses:
Engineering and product development		133			76			209
Selling and marketing		3,629			517			4,146
Unallocated operating expenses		-			-			2,332
		3,762			593			6,687
(Loss) income from operations		(478	)		1,116			(1,694	)
Interest expense		-			-			(208	)
Interest income		-			-			10
(Loss) income before income taxes	$	(478	)	$	1,116		$	(1,892	)

Six Months Ended June 30, 2022

	Dermatology Recurring Procedures			Dermatology Procedures Equipment			TOTAL
Revenues, net	$	10,649		$	5,497		$	16,146
Costs of revenues		4,330			2,695			7,025
Gross profit		6,319			2,802			9,121
Gross profit %		59.3	%		51.0	%		56.5	%
Allocated operating expenses:
Engineering and product development		259			113			372
Selling and marketing		6,929			833			7,762
Unallocated operating expenses		-			-			4,984
		7,188			946			13,118
(Loss) income from operations		(869	)		1,856			(3,997	)
Interest expense		-			-			(407	)
Interest income		-			-			10
(Loss) income before income taxes	$	(869	)	$	1,856		$	(4,394	)

Three Months Ended June 30, 2021

	Dermatology Recurring Procedures			Dermatology Procedures Equipment			TOTAL
Revenues, net	$	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 debt extinguishment		-			-			2,028
Interest expense		-			-			(26	)
Interest income		-			-			7
Income before income taxes	$	589		$	609		$	1,086

Six Months Ended June 30, 2021

	Dermatology Recurring Procedures			Dermatology Procedures Equipment			TOTAL
Revenues, net	$	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 debt extinguishment		-			-			2,028
Interest expense		-			-			(56	)
Interest income		-			-			15
Income (loss) before income taxes	$	604		$	991		$	(1,328	)

The following tables present the Company’s revenue disaggregated by geographical region for the three and six months ended June 30, 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 June 30, 2022

	Dermatology Recurring Procedures		Dermatology Procedures Equipment		TOTAL
Domestic	$	5,177	$	547	$	5,724
Foreign		405		2,976		3,381
Total	$	5,582	$	3,523	$	9,105

Six Months Ended June 30, 2022

	Dermatology Recurring Procedures		Dermatology Procedures Equipment		TOTAL
Domestic	$	9,866	$	1,242	$	11,108
Foreign		783		4,255		5,038
Total	$	10,649	$	5,497	$	16,146

Three Months Ended June 30, 2021

	Dermatology Recurring Procedures		Dermatology Procedures Equipment		TOTAL
Domestic	$	5,127	$	336	$	5,463
Foreign		325		1,594		1,919
Total	$	5,452	$	1,930	$	7,382

Six Months Ended June 30, 2021

	Dermatology Recurring Procedures		Dermatology Procedures Equipment		TOTAL
Domestic	$	9,553	$	594	$	10,147
Foreign		578		2,484		3,062
Total	$	10,131	$	3,078	$	13,209

The assets acquired from Theravant in January 2022 (see Note 4) will be primarily attributed to the dermatology recurring procedures business segment, resulting in a material increase in total assets for that segment at June 30, 2022 as compared to the 2021 Form 10-K.