Business Segments

6 Months Ended

Jun. 30, 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 June 30, 2023
Revenues, net	$	5,456		$	2,794		$	8,250
Cost of revenues		2,205			1,727			3,932
Gross profit		3,251			1,067			4,318
Gross profit %		59.6	%		38.2	%		52.3	%
Allocated expenses:
Engineering and product development		289			85			374
Selling and marketing		2,850			566			3,416
Unallocated expenses		—			—			2,490
		3,139			651			6,280
Income (loss) from operations		112			416			(1,962	)
Loss on debt extinguishment		—			—			(909	)
Interest expense		—			—			(298	)
Interest income		—			—			21
Net income (loss)	$	112		$	416		$	(3,148	)

	Dermatology Recurring Procedures			Dermatology Procedures Equipment			TOTAL
Six Months Ended June 30, 2023
Revenues, net	$	10,665		$	5,152		$	15,817
Cost of revenues		4,225			2,886			7,111
Gross profit		6,440			2,266			8,706
Gross profit %		60.4	%		44.0	%		55.0	%
Allocated expenses:
Engineering and product development		534			155			689
Selling and marketing		6,203			955			7,158
Unallocated expenses		—			—			5,407
		6,737			1,110			13,254
(Loss) income from operations		(297	)		1,156			(4,548	)
Loss on debt extinguishment		—			—			(909	)
Interest expense		—			—			(584	)
Interest income		—			—			58
Net (loss) income	$	(297	)	$	1,156		$	(5,983	)

	Dermatology Recurring Procedures			Dermatology Procedures Equipment			TOTAL
Three Months Ended June 30, 2022
Revenues, net	$	5,582		$	3,523		$	9,105
Cost 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 expenses:
Engineering and product development		133			76			209
Selling and marketing		3,629			517			4,146
Unallocated expenses		—			—			2,332
		3,762			593			6,687
(Loss) income from operations		(478	)		1,116			(1,694	)
Interest expense		—			—			(208	)
Interest income		—			—			10
Net (loss) income	$	(478	)	$	1,116		$	(1,892	)

	Dermatology Recurring Procedures			Dermatology Procedures Equipment			TOTAL
Six Months Ended June 30, 2022
Revenues, net	$	10,649		$	5,497		$	16,146
Cost 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 expenses:
Engineering and product development		259			113			372
Selling and marketing		6,929			833			7,762
Unallocated expenses		—			—			4,984
		7,188			946			13,118
(Loss) income from operations		(869	)		1,856			(3,997	)
Interest expense		—			—			(407	)
Interest income		—			—			10
Net (loss) income	$	(869	)	$	1,856		$	(4,394	)

For the three and six months ended June 30, 2023 and 2022, depreciation and amortization by reportable segment were as follows:

	Three Months Ended June 30,
	2023		2022
Dermatology recurring procedures	$	1,238	$	1,059
Dermatology procedures equipment		187		277
Unallocated expenses		3		3
Consolidated total	$	1,428	$	1,339

	Six Months Ended June 30,
	2023		2022
Dermatology recurring procedures	$	2,451	$	2,211
Dermatology procedures equipment		367		442
Unallocated expenses		7		7
Consolidated total	$	2,825	$	2,660

The following tables present the Company’s revenue disaggregated by geographical region for the three and six months ended June 30, 2023 and 2022, respectively. Domestic refers to revenue from customers based in the United States, and foreign revenue is derived from sales to the Company’s distributors, primarily in Asia.

	Dermatology Recurring Procedures		Dermatology Procedures Equipment		TOTAL
Three Months Ended June 30, 2023
Domestic	$	5,141	$	926	$	6,067
Foreign		315		1,868		2,183
Total	$	5,456	$	2,794	$	8,250

Six Months Ended June 30, 2023
Domestic	$	9,988	$	1,422	$	11,410
Foreign		677		3,730		4,407
Total	$	10,665	$	5,152	$	15,817

	Dermatology Recurring Procedures		Dermatology Procedures Equipment		TOTAL
Three Months Ended June 30, 2022
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
Domestic	$	9,866	$	1,242	$	11,108
Foreign		783		4,255		5,038
Total	$	10,649	$	5,497	$	16,146