Business Segments and Geographic Data

6 Months Ended

Jun. 30, 2017

Segment Reporting [Abstract]

Business Segments and Geographic Data

Note 12

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.

Under the skin care health operations the Company was 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 business 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 June 30, 2017 (unaudited)
	CONSUMER			PHYSICIAN RECURRING		PROFESSIONAL		TOTAL
Revenues	$	—		$	—	$	—	$	—
Costs of revenues		—			—		—		—
Gross profit		—			—		—		—
Gross profit %
Allocated operating expenses:
Engineering and product development		—			—		—		—
Selling and marketing expenses		—			—		—		—
Loss on disposal of assets		2,166							2,166
Unallocated operating expenses		—			—		—		(802	)
		2,166			—		—		1,364
Loss from continuing operations		(2,166	)		—		—		(1,364	)
Unrealized gain		—			—		—		2,622
Interest and other financing expense, net		—			—		—		(46	)
Income (loss) from continuing operations before income taxes	($	2,166	)	$	—	$	—	$	1,212

	Three Months Ended June 30, 2016 (unaudited)
	CONSUMER			PHYSICIAN RECURRING			PROFESSIONAL			TOTAL
Revenues	$	9,660		$	1,254		$	329		$	11,243
Costs of revenues		2,284			926			144			3,354
Gross profit		7,376			328			185			7,889
Gross profit %		76.7	%		26.2	%		56.2	%		70.2	%
Allocated operating expenses:
Engineering and product development		264			79			—			343
Selling and marketing expenses		5,795			625			5			6,425
Unallocated operating expenses		—			—			—			2,932
		6,059			704			5			9,700
Income (loss) from continuing operations		1,317			(376	)		180			(1,811	)
Interest and other financing expense, net		—			—			—			(292	)
Income (loss) from continuing operations before income taxes	$	1,317		($	376	)	$	180		($	2,103	)

	Six Months Ended June 30, 2017 (unaudited)
	CONSUMER			PHYSICIAN RECURRING			PROFESSIONAL		TOTAL
Revenues	$	3,539		$	—		$	—	$	3,539
Costs of revenues		100			—			—		100
Gross profit		3,439			—			—		3,439
Gross profit %		97.1	%							97.1	%
Allocated operating expenses:
Engineering and product development		143			—			—		143
Selling and marketing expenses		620			—			—		620
Loss on sale of assets		4,222			29			—		4,251
Unallocated operating expenses		—			—			—		1,540
		4,985			29			—		6,554
Loss from continuing operations		(1,546	)		(29	)		—		(3,115	)
Unrealized gain										2,622
Interest and other financing expense, net		—			—			—		(123	)
Loss from continuing operations before income taxes	($	1,546	)	($	29	)		$	($	616	)

	Six Months Ended June 30, 2016 (unaudited)
	CONSUMER			PHYSICIAN RECURRING			PROFESSIONAL			TOTAL
Revenues	$	19,582		$	2,462		$	432		$	22,476
Costs of revenues		4,503			1,392			213			6,108
Gross profit		15,079			1,070			219			16,368
Gross profit %		77.0	%		43.5	%		50.7	%		72.8	%
Allocated operating expenses:
Engineering and product development		536			121			—			657
Selling and marketing expenses		12,756			1,454			18			14,228
Loss on sale of assets								843			843
Unallocated operating expenses		—			—			—			6,897
		13,292			1,575			861			22,625
Income (loss) from continuing operations		1,787			(505	)		(642	)		(6,257	)
Interest and other financing expense, net		—			—			—			(625	)
Income (loss) from continuing operations before income taxes	$	1,787		($	505	)	($	642	)	($	6,882	)

For the three and six months ended June 30, 2017 and 2016 (unaudited), net revenues by geographic area were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
North America 1	$	—	$	6,806	$	2,475	$	14,119
Asia Pacific 2		—		922		—		1,436
Europe (including Israel)		—		3,510		1,064		6,901
South America		—		5		—		20
	$	—	$	11,243	$	3,539	$	22,476
1 United States			$	5,783	$	2,475	$	11,877
1 Canada			$	534	$	—	$	1,229

As of June 30, 2017 and December 31, 2016, long-lived assets by geographic area were as follows:

	June 30, 2016		December 31, 2016
		(unaudited)
North America	$	—	$	71
Asia Pacific		—		17
Europe (including Israel)		—		900
	$	—	$	988

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