Business and Geographical Reporting Segments

3 Months Ended

Mar. 31, 2024

Business and Geographical Reporting Segments [Abstract]

Business and Geographical Reporting Segments

Note 11

Business and Geographical Reporting Segments:

The Company 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 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) is 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 March 31, 2024	Dermatology Recurring Procedures			Dermatology Procedures Equipment			Total
Revenues, net	$	4,696		$	2,058		$	6,754
Cost of revenues		2,195			1,479			3,674
Gross profit		2,501			579			3,080
Gross profit %		53.3	%		28.1	%		45.6	%
Allocated expenses:
Engineering and product development		196			45			241
Selling and marketing		2,753			265			3,018
Unallocated expenses		—			—			2,710
		2,949			310			5,969
(Loss) income from operations		(448	)		269			(2,889	)
Interest expense		—			—			(524	)
Interest income		—			—			45
Net (loss) income	$	(448	)	$	269		$	(3,368	)

Three Months Ended March 31, 2023	Dermatology Recurring Procedures			Dermatology Procedures Equipment			Total
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	)

For the three months ended March 31, 2024 and 2023, depreciation and amortization by reportable segment were as follows:

	Three Months Ended March 31,
	2024		2023
Dermatology recurring procedures	$	1,114	$	1,213
Dermatology procedures equipment		132		180
Unallocated expenses		3		4
Total	$	1,249	$	1,397

The following tables present the Company’s revenue disaggregated by geographical region for the three months ended March 31, 2024 and 2023. Domestic refers to revenue from customers based in the United States, and foreign revenue is derived from the Company’s distributors primarily in Asia.

Three Months Ended March 31, 2024	Dermatology Recurring Procedures		Dermatology Procedures Equipment		Total
Domestic	$	4,320	$	141	$	4,461
Foreign		376		1,917		2,293
Total	$	4,696	$	2,058	$	6,754

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