SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2025

Segment Reporting [Abstract]

SEGMENT INFORMATION

NOTE 10 – SEGMENT INFORMATION

The Company has one operating and one reportable segment: direct medical procedure services. This segment is made up of facilities and medical staff that provide the Company’s patented AirSculpt® procedures to patients. The accounting policies of the direct medical procedure services segment are the same as those presented in Note 1 - Organization and Summary of Key Accounting Policies. The Company’s chief operating decision maker (“CODM”) is the Company’s chief executive officer. The CODM reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance and allocating resources. The Company’s CODM reviews revenue, gross profit, Adjusted EBITDA and net income/(loss). The CODM uses Adjusted EBITDA as the primary profit metric to evaluate income generated from operations in deciding where to spend additional marketing dollars or allocate additional resources. Gross profit is defined as revenues less cost of service incurred and Adjusted EBITDA as net (loss)/income excluding depreciation and amortization, net interest expense, income tax (benefit)/expense, restructuring and related severance costs, loss on disposal of long-lived assets, and equity-based compensation. Segment information is presented below showing revenue, significant expenses and net income/(loss) (the closest GAAP measure to Adjusted EBITDA), in the same manner that the CODM reviews the operating results in assessing performance and allocating resources.

	Three Months Ended March 31,
($ in thousands)	2025		2024
Revenue	$	39,371	$	47,620
Operating expenses:
Cost of service (exclusive of depreciation and amortization) (1)	15,950		18,042
Advertising Cost	7,152		8,366
Facility selling, general, and administrative expense	4,816		6,147
Corporate selling, general, and administrative expense (2)	9,800		1,243
Depreciation and amortization	3,242		2,805
Loss/(gain) on disposal of long-lived assets	—		5
Total operating expenses	40,960		36,608
(Loss)/income from operations	(1,589)		11,012
Interest expense, net	1,625		1,532
Pre-tax net (loss)/income	(3,214)		9,480
Income tax expense	(367)		3,451
Net loss	$	(2,847)	$	6,029
Segment assets	$	203,260	$	202,714

(1)    Cost of services includes the costs of physicians, nursing, supplies and rent directly related to the performance of procedures at the facility level.

(2)     During the first quarter of fiscal year 2024, the Company recorded a cumulative reversal of stock compensation expense of $10.4 million related to reassessing the probability of achieving the performance target on certain of the Company's performance-based stock units. See Note 6 to the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for further discussion.