Note 14 - Segment Reporting

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 14. Segment reporting

Segment reporting is based on the “management approach,” following the method that management organizes the Company’s reportable segments for which separate financial information is made available to, and evaluated regularly by, the chief operating decision maker in allocating resources and in assessing performance. The Company’s chief operating decision maker ("CODM") is its Chief Executive Officer ("CEO"), who makes decisions on allocating resources and in assessing performance. The CEO reviews the Company's consolidated results as one operating segment. In making operating decisions, the CEO primarily considers consolidated financial information, accompanied by disaggregated information about revenues by geography and product. All of the Company’s principal operations and decision-making functions are located in the U.S. The Company’s CEO views its operations, manages its business, and uses one measurement of profitability for the one operating segment - which sells aesthetic medical equipment and services, and distributes skincare products, to qualified medical practitioners. Substantially all of the Company’s long-lived assets are located in the U.S.

The following table presents a summary of revenue by geography for the three and nine months ended September 30, 2020 and 2019 (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Revenue mix by geography:
United States	$	15,443		26,425		40,142		74,972
Japan		11,497		7,511		27,176		18,142
Asia, excluding Japan		3,204		3,754		8,279		11,396
Europe		2,769		1,907		6,910		7,147
Rest of the world		6,219		6,520		15,233		18,260
Total consolidated revenue	$	39,132		46,117		97,740		129,917
Revenue mix by product category:
Products*		24,121		34,958		60,621		99,706
Consumables		2,304		2,510		6,263		7,109
Skincare		6,829		2,847		14,506		6,230
Total product revenue	$	33,254		40,315		81,390		113,045
Service		5,878		5,802		16,350		16,872
Total consolidated revenue	$	39,132		46,117		97,740		129,917

● Included in products is rental revenue of $0.2 million for the three and nine months ended September 30, 2020.