Business Segments and Geographic Data

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Business Segments and Geographic Data

Note 11

Business Segments and Geographic Data:

The Company is in the process of transitioning from a skin health company providing medical and cosmetic solutions for dermatological conditions, to a real estate investment company holding investments in a variety of current and future projects, including residential developments, commercial properties such as gas station sites, and hotels and resort communities, as described further in this report.

The Company had organized its original business into three operating segments to align its organization based upon the Company’s management structure, products and services offered, markets served and types of customers, as follows: The Consumer segment derived its revenues from the design, development, manufacturing and selling of long-term hair reduction and acne consumer products; that segment was sold on January 23, 2017. The Physician Recurring segment derived its revenues mainly from the sales of skincare products; that segment was sold on September 15, 2016. The Professional segment generates revenues from the sale of equipment, such as medical and esthetic light and heat based products; that segment remains with the Company as of the current date.

The anticipated real estate investment properties to be transferred to the Company will be classified into one or more additional revenue segments.

Management 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), net is also not allocated to the operating segments. Unallocated assets include cash and cash equivalents, prepaid expenses and deposits.

The following tables reflect results of operations from our business segments for the periods indicated below. The consumer segment reflects operation from January 1, 2017 through January 23, 2017 the date of the sale of the consumer division to ICTV. See Note 1 Acquisitions and Dispositions for more information.

Three Months Ended March 31, 2017 (unaudited)

	CONSUMER			PHYSICIAN RECURRING			PROFESSIONAL			TOTAL
Revenues	$	3,539		$	-		$	-		$	3,539
Cost of revenues		100			-			-			100
Gross profit		3,439			-			-			3,439
Gross profit %		97.1	%		0	%		0	%		97.1	%
Allocated operating expenses:
Engineering and product development		143			-			-			143
Selling and marketing		620			-			-			620
Loss on disposal of assets		2,057			28						2,085
Unallocated operating expenses		-			-			-			2,342
		2,820			28			-			5,190
Income (loss) from continuing operations		619			(28	)		-			(1,751	)
Interest  and other financing expense, net		-			-			-			(77	)
Income (loss) from continuing operations before income taxes	$	619		($	28	)	$	-		($	1,828	)

Three Months Ended March 31, 2016 (unaudited)

	CONSUMER			PHYSICIAN RECURRING			PROFESSIONAL			TOTAL
Revenues	$	9,922		$	1,208		$	103		$	11,233
Cost of revenues		2,219			466			69			2,754
Gross profit		7,703			742			34			8,479
Gross profit %		77.6	%		61.5	%		33.0	%		75.5	%
Allocated operating expenses:
Engineering and product development		272			42			-			314
Selling and marketing		6,961			829			13			7,803
Loss on sale of assets								843			843
Unallocated operating expenses		-			-			-			3,965
		7,233			871			856			12,925
Income (loss) from continuing operations		470			(129	)		(822	)		(4,446	)
Interest and other financing expense, net		-			-			-			(333	)
Income (loss) from continuing operations before income taxes	$	470		$	(129	)	$	(822	)	$	(4,779	)

For the three months ended March 31, 2017 and 2016, net revenues by geographic area (determined by ship to location) were as follows:

	Three Months Ended March 31,
	2017		2016
	(unaudited)		(unaudited)
North America 1	$	2,475	$	7,313
Asia Pacific		-		514
Europe (including Israel)		1,064		3,391
South America		-		15
	$	3,539	$	11,233
1 United States	$	2,475	$	6,094
1 Canada	$	-	$	695

As of March 31, 2017 and December 31, 2016, long-lived assets by geographic area were as follows:

	March 31, 2017		December 31, 2016
	(unaudited)
North America	$	40	$	71
Asia Pacific		-		17
Europe (including Israel)		62		900
	$	102	$	988

The Company discusses segmental details in its Management Discussion and Analysis found elsewhere in this Quarterly Report on Form 10-Q.