XML 32 R23.htm IDEA: XBRL DOCUMENT v3.24.0.1
Segment Reporting
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
Segment Reporting 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 assessing performance.

Beginning in the fourth quarter of 2022, the Company segregates its operations into two reportable business segments: (i) Cutera Core and (ii) AviClear. This segregation aligns the Company’s operating business segments with the way the CEO reviews the Company's operations.
The Company measures the financial results of its reportable segments using an internal performance measure that excludes certain non-cash and non-recurring expenses.
Three Months Ended
September 30,		Nine Months Ended
September 30,
2023202220232022
(Dollars in thousands)(Dollars in thousands)
Net revenue
   Cutera Core$42,589 $61,653 $150,409 $183,755 
   AviClear3,889 1,155 12,420 1,291 
       Total net revenue$46,478 $62,808 $162,829 $185,046 
Segment loss
   Cutera Core(22,643)5,953 (40,485)16,174 
   AviClear(6,105)(7,906)(19,057)(23,568)
        Total segment loss
(28,748)(1,953)(59,542)(7,394)
Items not allocated to segments
  Stock-based compensation(1,616)(4,245)(6,552)(13,021)
  ERP implementation costs(1,457)(1,351)(2,745)(7,712)
  Depreciation and amortization(4,732)(1,195)(12,310)(3,342)
Board of Directors legal and advisory fee(2,030)— (9,739)— 
Retention plan costs(1,366)— (4,338)— 
  Legal fees, severance, and other(998)(689)(3,485)(1,185)
Consolidated loss from operations(40,947)(9,433)(98,711)(32,654)
  Interest and other expense, net(3,160)(1,874)(6,124)(41,024)
Consolidated loss before income taxes$(44,107)$(11,307)$(104,835)$(73,678)
Nine Months Ended
September 30,
Capital spending20232022
   Cutera Core$267 $1,053 
   AviClear30,375 13,054 
Total segment capital spending$30,642 $14,107 
   Corporate— — 
    Total capital spending$30,642 $14,107 
Total assetsSeptember 30, 2023December 31, 2022
   Cutera Core$132,587 $154,978 
   AviClear78,517 47,406 
Total segment assets$211,104 $202,384 
   Corporate195,529 318,604 
Total assets$406,633 $520,988 
The following table presents a summary of revenue by geography and product category for the three and nine months ended September 30, 2023 and 2022 (in thousands):
Three Months Ended
September 30,		Nine Months Ended
September 30,
2023202220232022
Revenue mix by geography:
United States$21,526 $28,074 $69,630 $79,290 
Japan11,529 15,263 37,247 47,940 
Asia, excluding Japan3,440 6,166 14,494 14,881 
Europe3,864 4,711 14,477 14,827 
Rest of the World
6,119 8,594 26,981 28,108 
Total consolidated revenue$46,478 $62,808 $162,829 $185,046 
Revenue mix by product category:
Systems$26,277 $40,985 $97,490 $121,152 
AviClear3,889 1,155 12,420 1,291 
Consumables3,682 4,964 11,680 14,029 
Skincare7,141 9,436 24,695 30,723 
Total product revenue40,989 56,540 146,285 167,195 
Service5,489 6,268 16,544 17,851 
Total consolidated revenue$46,478 $62,808 $162,829 $185,046 
In the fourth quarter of fiscal year ending December 31, 2023, the Company determined a realignment of its operating segments to further drive its long-term strategic objectives. Management reorganized its management reporting structure and began to manage its operations under one segment structure. The Company reassessed its reportable segments in the fourth quarter of fiscal year 2023 and determined a change in its reportable segments was needed to align with its management reporting structure. The Company will report one consolidated reportable segment beginning the fourth quarter of fiscal year ending December 31, 2023.