Business Segment Information

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Business Segment Information

Business Segment InformationDuring the second quarter of 2023, the Company renamed its two operating segments. Prior to that time the Patient Services segment was known as Integrated Therapy Services and the Device Solutions segment was known as Durable Medical Equipment Services. The changes were for marketing purposes only and there were no changes to the operations of either segment. The Company’s reportable segments are organized based on service platforms, with the Patient Services segment reflecting higher margin rental revenues that generally include payments made by third-party and direct payers and

the Device Solutions segment reflecting lower margin product sales, direct payer rental and service revenues. Resources are allocated and performance is assessed for these segments by the Company’s Chief Executive Officer, whom the Company has determined to be its chief operating decision-maker. The Company believes that reporting performance at the gross profit level is the best indicator of segment performance.

The financial information summarized below is presented by reportable segment for the three months ended June 30, 2023 and 2022:

2023
(in thousands)	Patient Services		Device Solutions		Corporate/ Eliminations		Total
Net revenues - external	$	19,319	$	12,416	$	—	$	31,735
Net revenues - internal	—		1,681		(1,681)		—
Total net revenues	19,319		14,097		(1,681)		31,735
Gross profit	11,845		4,597		—		16,442
Selling, general and administrative expenses					15,194		15,194
Interest expense					(620)		(620)
Other income					2		2
Provision for income taxes					(195)		(195)
Net income							$	435
Total assets	$	60,243	$	40,506	$	2,000	$	102,749
Purchases of medical equipment	$	1,539	$	1,487	$	—	$	3,026
Depreciation and amortization of intangible assets	$	2,078	$	1,015	$	—	$	3,093

2022
(in thousands)	Patient Services		Device Solutions		Corporate/ Eliminations		Total
Net revenues - external	$	17,244	$	9,798	$	—	$	27,042
Net revenues - internal	—		1,762		(1,762)		—
Total net revenues	17,244		11,560		(1,762)		27,042
Gross profit	10,113		4,788		—		14,901
Selling, general and administrative expenses					14,694		14,694
Interest expense					(314)		(314)
Other expense					(30)		(30)
Provision for income taxes					(27)		(27)
Net loss							$	(164)
Total assets	$	62,310	$	34,507	$	2,000	$	98,817
Purchases of medical equipment	$	3,325	$	413	$	—	$	3,738
Depreciation and amortization of intangible assets	$	2,371	$	1,029	$	—	$	3,400

The financial information summarized below is presented by reportable segment for the six months ended June 30, 2023 and 2022:

2023
(in thousands)	Patient Services		Device Solutions		Corporate/ Eliminations		Total
Net revenues - external	$	38,093	$	24,012	$	—	$	62,105
Net revenues - internal	—		3,311		(3,311)		—
Total net revenues	38,093		27,323		(3,311)		62,105
Gross profit	23,386		8,596		—		31,982
Selling, general and administrative expenses					30,841		30,841
Interest expense					(1,104)		(1,104)
Other expense					(33)		(33)
Benefit from income taxes					107		107
Net income							$	111
Total assets	$	60,243	$	40,506	$	2,000	$	102,749
Purchases of medical equipment	$	4,212	$	2,782	$	—	$	6,994
Depreciation and amortization of intangible assets	$	4,256	$	2,040	$	—	$	6,296

2022
(in thousands)	Patient Services		Device Solutions		Corporate/ Eliminations		Total
Net revenues - external	$	33,885	$	19,920	$	—	$	53,805
Net revenues - internal	—		3,250		(3,250)		—
Total net revenues	33,885		23,170		(3,250)		53,805
Gross profit	20,851		9,417		—		30,268
Selling, general and administrative expenses					30,586		30,586
Interest expense					(591)		(591)
Other expense					(58)		(58)
Benefit from income taxes					435		435
Net loss							$	(532)
Total assets	$	62,310	$	34,507	$	2,000	$	98,817
Purchases of medical equipment	$	4,836	$	1,833	$	—	$	6,669
Depreciation and amortization of intangible assets	$	4,769	$	2,047	$	—	$	6,816