Business Segments

3 Months Ended

Mar. 31, 2023

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 and TheraClear Acne Therapy System procedures. The Dermatology Procedures Equipment segment generates revenues from the sale of equipment, such as lasers, lamp products and TheraClear devices. 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:

	Dermatology Recurring Procedures			Dermatology Procedures Equipment			TOTAL
Three Months Ended March 31, 2023
Revenues, net	$	5,209		$	2,358		$	7,567
Cost of revenues		2,020			1,159			3,179
Gross profit		3,189			1,199			4,388
Gross profit %		61.2	%		50.8	%		58.0	%
Allocated expenses:
Engineering and product development		245			70			315
Selling and marketing		3,353			389			3,742
Unallocated expenses		—			—			2,917
		3,598			459			6,974
(Loss) income from operations		(409	)		740			(2,586	)
Interest expense		—			—			(286	)
Interest income		—			—			37
Net (loss) income	$	(409	)	$	740		$	(2,835	)

	Dermatology Recurring Procedures			Dermatology Procedures Equipment			TOTAL
Three Months Ended March 31, 2022
Revenues, net	$	5,067		$	1,974		$	7,041
Cost of revenues		2,032			881			2,913
Gross profit		3,035			1,093			4,128
Gross profit %		59.9	%		55.4	%		58.6	%
Allocated expenses:
Engineering and product development		126			37			163
Selling and marketing		3,300			316			3,616
Unallocated expenses		—			—			2,652
		3,426			353			6,431
(Loss) income from operations		(391	)		740			(2,303	)
Interest expense		—			—			(199	)
Net (loss) income	$	(391	)	$	740		$	(2,502	)

For the three months ended March 31, 2023 and 2022, depreciation and amortization by reportable segment were as follows:

	Three Months Ended March 31,
	2023		2022
Dermatology recurring procedures	$	1,213	$	1,152
Dermatology procedures equipment		180		165
Unallocated expenses		4		4
Consolidated total	$	1,397	$	1,321

The following tables present the Company’s revenue disaggregated by geographical region for the three months ended March 31, 2023 and 2022, 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.

	Dermatology Recurring Procedures		Dermatology Procedures Equipment		TOTAL
Three Months Ended March 31, 2023
Domestic	$	4,847	$	496	$	5,343
Foreign		362		1,862		2,224
Total	$	5,209	$	2,358	$	7,567

Three Months Ended March 31, 2022
Domestic	$	4,689	$	695	$	5,384
Foreign		378		1,279		1,657
Total	$	5,067	$	1,974	$	7,041