Business Segments and Geographic Data

9 Months Ended

Sep. 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 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 generated 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, but is not active.

The anticipated real estate investment properties to be transferred to the Company will be classified into one or more additional operating and reportable 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 September 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		594							594
Unallocated operating expenses		—			—		—		2,888
		594			—		—		3,482
Loss from continuing operations		(594	)		—		—		(3.482	)
Revaluation of asset contribution related financial instruments, net		—			—		—		326
Interest  and other financing income, net		—			—		—		20
Loss from continuing operations before income taxes	($	594	)	$	—	$	—	($	3,136	)

Three Months Ended September 30, 2016 (unaudited)

	CONSUMER			PHYSICIAN RECURRING			PROFESSIONAL			TOTAL
Revenues	$	6,142		$	840		$	276		$	7,258
Costs of revenues		909			461			117			1,487
Gross profit		5,233			379			159			5,771
Gross profit %		85.2	%		45.1	%		57.6	%		79.5	%
Allocated operating expenses:
Engineering and product development		243			83			—			326
Selling and marketing expenses		3,921			591			17			4,529
Impairment		3,518									3,518
Loss on sale of assets					1,731						1,731
Unallocated operating expenses		—			—			—			2,894
		7,682			2,405			17			12,998
Income (loss) from continuing operations		(2,449	)		(2,026	)		142			(7,227	)
Interest and other financing income, net		—			—			—			88
Income (loss) from continuing operations before income taxes	($	2,449	)	($	2,026	)	$	142		($	7,139	)

Nine Months Ended September 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		4,816			29			—		4,845
Unallocated operating expenses		—			—			—		4,428
		5,579			29			—		10,036
Loss from continuing operations		(2,140	)		(29	)		—		(6,597	)
Revaluation of asset contribution related financial instruments, net										2,948
Interest  and other financing expense, net		—			—			—		(103	)
Loss from continuing operations before income taxes	($	2,140	)	($	29	)	$	—	($	3,752	)

Nine Months Ended September 30, 2016 (unaudited) 

	CONSUMER			PHYSICIAN RECURRING			PROFESSIONAL			TOTAL
Revenues	$	25,724		$	3,302		$	708		$	29,734
Costs of revenues		5,412			1,853			330			7,595
Gross profit		20,312			1,449			378			22,139
Gross profit %		79.0	%		43.9	%		53.4	%		74.5	%
Allocated operating expenses:
Engineering and product development		779			204			—			983
Selling and marketing expenses		16,677			2,045			35			18,757
Impairment		3,518									3,518
Loss on sale of assets					1,731			843			2,574
Unallocated operating expenses		—			—			—			9,791
		20,974			3,980			878			35,623
Loss from continuing operations		(662	)		(2,531	)		(500	)		(13,484	)
Interest and other financing expense, net		—			—			—			(537	)
Loss from continuing operations before income taxes	($	662	)	($	2,531	)	($	500	)	($	14,021	)

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
North America 1	$	—	$	4,257	$	2,475	$	18,376
Asia Pacific 2		—		744		—		2,180
Europe (including Israel)		—		2,246		1,064		9,147
South America		—		11		—		31
	$	—	$	7,258	$	3,539	$	29,734
1 United States			$	3,528	$	2,475	$	15,405
1 Canada			$	277	$	—	$	1,506

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

	September 30, 2017		December 31, 2016
	(unaudited)
North America	$	—	$	71
Asia Pacific		—		6
Europe (including Israel)		—		—
	$	—	$	77

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