Business and Geographical Reporting Segments

6 Months Ended

Jun. 30, 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 June 30, 2025									Six Months Ended June 30, 2025
	Dermatology Recurring Procedures			Dermatology Procedures Equipment			Total			Dermatology Recurring Procedures			Dermatology Procedures Equipment			Total
Revenues, net	$	5,119		$	2,544		$	7,663		$	9,846		$	4,629		$	14,475
Cost of revenues		1,911			1,446			3,357			3,873			2,519			6,392
Gross profit		3,208			1,098			4,306			5,973			2,110			8,083
Gross profit %		62.7	%		43.2	%		56.2	%		60.7	%		45.6	%		55.8	%
Allocated expenses:
Engineering and product development		57			29			86			123			59			182
Selling and marketing		2,361			1,172			3,533			4,525			2,131			6,656
Unallocated expenses		—			—			2,911			—			—			5,484
Total allocated and unallocated expenses		2,418			1,201			6,530			4,648			2,190			12,322
Income (loss) from operations		790			(103	)		(2,224	)		1,325			(80	)		(4,239	)
Interest expense		—			—			(491	)		—			—			(977	)
Interest income		—			—			226			—			—			295
Net income (loss)	$	790		$	(103	)	$	(2,489	)	$	1,325		$	(80	)	$	(4,921	)

	Three Months Ended June 30, 2024									Six Months Ended June 30, 2024
	Dermatology Recurring Procedures			Dermatology Procedures Equipment			Total			Dermatology Recurring Procedures			Dermatology Procedures Equipment			Total
Revenues, net	$	5,339		$	3,096		$	8,435		$	10,035		$	5,154		$	15,189
Cost of revenues		1,827			1,631			3,458			3,945			3,071			7,016
Gross profit		3,512			1,465			4,977			6,090			2,083			8,173
Gross profit %		65.8	%		47.3	%		59.0	%		60.7	%		40.4	%		53.8	%
Allocated expenses:
Engineering and product development		145			54			199			341			99			440
Selling and marketing		2,602			452			3,054			5,432			756			6,188
Unallocated expenses		—			—			2,210			—			—			4,920
Total allocated and unallocated expenses		2,747			506			5,463			5,773			855			11,548
Income (loss) from operations		765			959			(486	)		317			1,228			(3,375	)
Interest expense		—			—			(531	)		—			—			(1,055	)
Interest income		—			—			54			—			—			99
Other income		—			—			864			—			—			864
Net income (loss)	$	765		$	959		$	(99	)	$	317		$	1,228		$	(3,467	)

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Dermatology recurring procedures	$	1,109	$	1,080	$	2,229	$	2,194
Dermatology procedures equipment		108		166		208		298
Unallocated expenses		1		4		1		7
Total	$	1,218	$	1,250	$	2,438	$	2,499

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 June 30, 2025						Six Months Ended June 30, 2025
	Dermatology Recurring Procedures		Dermatology Procedures Equipment		Total		Dermatology Recurring Procedures		Dermatology Procedures Equipment		Total
Domestic	$	4,663	$	397	$	5,060	$	8,911	$	546	$	9,457
China		—		1,659		1,659		—		2,493		2,493
Middle East		—		307		307		—		1,018		1,018
Other foreign		456		181		637		935		572		1,507
Total	$	5,119	$	2,544	$	7,663	$	9,846	$	4,629	$	14,475

	Three Months Ended June 30, 2024						Six Months Ended June 30, 2024
	Dermatology Recurring Procedures		Dermatology Procedures Equipment		Total		Dermatology Recurring Procedures		Dermatology Procedures Equipment		Total
Domestic	$	4,923	$	458	$	5,381	$	9,243	$	598	$	9,841
China		—		1,018		1,018		—		2,120		2,120
Middle East		—		284		284		—		714		714
Other foreign		416		1,336		1,752		792		1,722		2,514
Total	$	5,339	$	3,096	$	8,435	$	10,035	$	5,154	$	15,189

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

	June 30, 2025		December 31, 2024
Dermatology recurring procedures	$	17,803	$	21,750
Dermatology procedures equipment		6,306		5,081
Other unallocated assets		6,613		9,326
Total	$	30,722	$	36,157

Long-lived assets of $1.2 million and $1.3 million were located in international markets, primarily Korea and Japan, as of June 30, 2025 and December 31, 2024, respectively, with the remainder located in domestic markets.