Business and Geographical Reporting Segments

3 Months Ended

Mar. 31, 2025

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. The Company’s chief operating decision maker (“CODM”) is the chief executive officer. The CODM 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 (in thousands, except gross profit %):

Three Months Ended March 31, 2025	Dermatology Recurring Procedures			Dermatology Procedures Equipment			Total
Revenues, net	$	4,727		$	2,085		$	6,812
Cost of revenues		2,049			1,116			3,165
Gross profit		2,678			969			3,647
Gross profit %		56.7	%		46.5	%		53.5	%
Allocated expenses:
Engineering and product development		66			30			96
Selling and marketing		2,077			916			2,993
Unallocated expenses		—			—			2,573
Total allocated and unallocated expenses		2,143			946			5,662
Income (loss) from operations		535			23			(2,015	)
Interest expense		—			—			(486	)
Interest income		—			—			69
Net income (loss)	$	535		$	23		$	(2,432	)

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
Total allocated and unallocated expenses		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	)

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

	Three Months Ended March 31,
	2025		2024
Dermatology recurring procedures	$	1,120	$	1,114
Dermatology procedures equipment		100		132
Unallocated expenses		—		3
Total	$	1,220	$	1,249

The following tables present the Company’s revenue disaggregated by geographical region for the periods indicated below (in thousands). 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, 2025	Dermatology Recurring Procedures		Dermatology Procedures Equipment		Total
Domestic	$	4,248	$	149	$	4,397
China		—		834		834
Middle East		—		711		711
Other foreign		479		391		870
Total	$	4,727	$	2,085	$	6,812

Three Months Ended March 31, 2024	Dermatology Recurring Procedures		Dermatology Procedures Equipment		Total
Domestic	$	4,320	$	141	$	4,461
China		—		1,102		1,102
Middle East		—		430		430
Other foreign		376		385		761
Total	$	4,696	$	2,058	$	6,754

The following table presents total assets by reportable segment (in thousands):

	March 31, 2025		December 31, 2024
Dermatology recurring procedures	$	20,071	$	21,750
Dermatology procedures equipment		5,798		5,081
Other unallocated assets		8,393		9,326
Total	$	34,262	$	36,157

Long-lived assets of $1.2 million and $1.3 million were located in international markets, primarily Korea and Japan, as of March 31, 2025 and December 31, 2024, respectively, with the remainder located in domestic markets.