Business and Geographical Reporting Segments

6 Months Ended

Jun. 30, 2024

Business and Geographical Reporting Segments [Abstract]

Business and Geographical Reporting Segments

Note 11

Business and Geographical Reporting 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. 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 the Company’s business segments for the periods indicated below:

Three Months Ended June 30, 2024	Dermatology Recurring Procedures			Dermatology Procedures Equipment			Total
Revenues, net	$	5,339		$	3,096		$	8,435
Cost of revenues		1,854			1,644			3,498
Gross profit		3,485			1,452			4,937
Gross profit %		65.3	%		46.9	%		58.5	%
Allocated expenses:
Engineering and product development		145			54			199
Selling and marketing		2,575			439			3,014
Unallocated expenses		—			—			2,210
		2,720			493			5,423
Income (loss) from operations		765			959			(486	)
Interest expense		—			—			(531	)
Interest income		—			—			54
Other income		—			—			864
Net income (loss)	$	765		$	959		$	(99	)

Six Months Ended June 30, 2024	Dermatology Recurring Procedures			Dermatology Procedures Equipment			Total
Revenues, net	$	10,035		$	5,154		$	15,189
Cost of revenues		4,049			3,123			7,172
Gross profit		5,986			2,031			8,017
Gross profit %		59.7	%		39.4	%		52.8	%
Allocated expenses:
Engineering and product development		341			99			440
Selling and marketing		5,328			704			6,032
Unallocated expenses		—			—			4,920
		5,669			803			11,392
Income (loss) from operations		317			1,228			(3,375	)
Interest expense		—			—			(1,055	)
Interest income		—			—			99
Other income		—			—			864
Net income (loss)	$	317		$	1,228		$	(3,467	)

Three Months Ended June 30, 2023	Dermatology Recurring Procedures			Dermatology Procedures Equipment			Total
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
(Loss) income from operations		112			416			(1,962	)
Loss on debt extinguishment		—			—			(909	)
Interest expense		—			—			(298	)
Interest income		—			—			21
Net (loss) income	$	112		$	416		$	(3,148	)

Six Months Ended June 30, 2023	Dermatology Recurring Procedures			Dermatology Procedures Equipment			Total
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	)

The following tables present depreciation and amortization by reportable segment for the periods indicated below:

	Three Months Ended June 30,
	2024		2023
Dermatology recurring procedures	$	1,080	$	1,238
Dermatology procedures equipment		166		187
Unallocated expenses		4		3
Total	$	1,250	$	1,428

	Six Months Ended June 30,
	2024		2023
Dermatology recurring procedures	$	2,194	$	2,451
Dermatology procedures equipment		298		367
Unallocated expenses		7		7
Total	$	2,499	$	2,825

The following tables present the Company’s revenue disaggregated by geographical region for the periods indicated below. 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 June 30, 2024	Dermatology Recurring Procedures		Dermatology Procedures Equipment		Total
Domestic	$	4,923	$	458	$	5,381
Foreign		416		2,638		3,054
Total	$	5,339	$	3,096	$	8,435

Six Months Ended June 30, 2024
Domestic	$	9,243	$	598	$	9,841
Foreign		792		4,556		5,348
Total	$	10,035	$	5,154	$	15,189

Three Months Ended June 30, 2023	Dermatology Recurring Procedures		Dermatology Procedures Equipment		Total
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