Business and Geographical Reporting Segments

9 Months Ended

Sep. 30, 2024

Business and Geographical Reporting Segments [Abstract]

Business and Geographical Reporting Segments

Note 12

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 present results of operations from the Company’s business segments for the periods indicated below:

	Three Months Ended September 30, 2024									Nine Months Ended September 30, 2024
	Dermatology Recurring Procedures			Dermatology Procedures Equipment			Total			Dermatology Recurring Procedures			Dermatology Procedures Equipment			Total
Revenues, net	$	5,381		$	3,416		$	8,797		$	15,416		$	8,570		$	23,986
Cost of revenues		1,847			1,643			3,490			5,896			4,766			10,662
Gross profit		3,534			1,773			5,307			9,520			3,804			13,324
Gross profit %		65.7	%		51.9	%		60.3	%		61.8	%		44.4	%		55.5	%
Allocated expenses:
Engineering and product development		180			63			243			521			162			683
Selling and marketing		2,556			492			3,048			7,884			1,196			9,080
Unallocated expenses		—			—			3,669			—			—			8,589
Total allocated and unallocated expenses		2,736			555			6,960			8,405			1,358			18,352
Income (loss) from operations		798			1,218			(1,653	)		1,115			2,446			(5,028	)
Interest expense		—			—			(537	)		—			—			(1,592	)
Interest income		—			—			68			—			—			167
Other income		—			—			—			—			—			864
Net income (loss)	$	798		$	1,218		$	(2,122	)	$	1,115		$	2,446		$	(5,589	)

	Three Months Ended September 30, 2023									Nine Months Ended September 30, 2023
	Dermatology Recurring Procedures			Dermatology Procedures Equipment			Total			Dermatology Recurring Procedures			Dermatology Procedures Equipment			Total
Revenues, net	$	5,280		$	3,572		$	8,852		$	15,945		$	8,724		$	24,669
Cost of revenues		2,229			1,669			3,898			6,454			4,555			11,009
Gross profit		3,051			1,903			4,954			9,491			4,169			13,660
Gross profit %		57.8	%		53.3	%		56.0	%		59.5	%		47.8	%		55.4	%
Allocated expenses:
Engineering and product development		180			68			248			714			223			937
Selling and marketing		2,530			508			3,038			8,733			1,463			10,196
Unallocated expenses		—			—			2,283			—			—			7,690
Total allocated and unallocated expenses		2,710			576			5,569			9,447			1,686			18,823
Income (loss) from operations		341			1,327			(615	)		44			2,483			(5,163	)
Loss on debt extinguishment		—			—			—			—			—			(909	)
Interest expense		—			—			(528	)		—			—			(1,112	)
Interest income		—			—			90			—			—			148
Net income (loss)	$	341		$	1,327		$	(1,053	)	$	44		$	2,483		$	(7,036	)

The following table presents depreciation and amortization by reportable segment for the periods indicated below:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Dermatology recurring procedures	$	1,065	$	1,220	$	3,259	$	3,671
Dermatology procedures equipment		171		225		469		592
Unallocated expenses		3		4		10		11
Total	$	1,239	$	1,449	$	3,738	$	4,274

The following table presents 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 September 30, 2024						Nine Months Ended September 30, 2024
	Dermatology Recurring Procedures		Dermatology Procedures Equipment		Total		Dermatology Recurring Procedures		Dermatology Procedures Equipment		Total
Domestic	$	4,893	$	677	$	5,570	$	14,136	$	1,275	$	15,411
Foreign		488		2,739		3,227		1,280		7,295		8,575
Total	$	5,381	$	3,416	$	8,797	$	15,416	$	8,570	$	23,986

	Three Months Ended September 30, 2023						Nine Months Ended September 30, 2023
	Dermatology Recurring Procedures		Dermatology Procedures Equipment		Total		Dermatology Recurring Procedures		Dermatology Procedures Equipment		Total
Domestic	$	4,960	$	879	$	5,839	$	14,948	$	2,301	$	17,249
Foreign		320		2,693		3,013		997		6,423		7,420
Total	$	5,280	$	3,572	$	8,852	$	15,945	$	8,724	$	24,669