GEOGRAPHIC AND SEGMENT INFORMATION

Operating segments are aggregated into reportable segments only if they exhibit similar economic characteristics. In addition to similar economic characteristics we also consider the following factors in determining the reportable segments: the nature of business activities, the management structure directly accountable to our chief operating decision maker for operating and administrative activities, availability of discrete financial information and information presented to the Board of Directors and investors.

Prior to the first quarter of 2017, we disclosed only one reporting segment. Beginning in 2017, our reportable segments are disclosed as principally organized and managed as three operating segments: Core, OEM and Advanced Energy. We adopted reportable segments to align with changes in how we manage our business, review operating performance and allocate resources as a result of the growth in Advanced Energy and the differing behavior of the Core and OEM product lines. The Corporate & Other category includes certain unallocated corporate, operational, research and development and marketing costs which were not specifically attributed to any reportable segment. Net assets are shared, therefore, not allocated to the reportable segments. The OEM segment is primarily development contract and product driven, all related expenses are recorded as cost of sales, therefore no segment specific operating expenses are incurred.

Summarized financial information with respect to reportable segments is as follows:



	Three Months Ended September 30, 2017
(In thousands)	Core		OEM		Advanced Energy			Corporate (Other)			Total
Sales	$	6,696	$	525	$	2,126		$	—		$	9,347

Income (loss) from operations ⁽¹⁾	1,699		323		(718		)	(2,438		)	(1,134		)

Interest expense, net	—		—		—			(36		)	(36		)
Change in fair value of derivative liabilities	—		—		—			(69		)	(69		)
Income tax expense	—		—		—			6			6
Depreciation and amortization	—		—		—			171			171



	Three Months Ended September 30, 2016
(In thousands)	Core		OEM		Advanced Energy			Corporate (Other)			Total
Sales	$	6,902	$	1,762	$	1,399		$	—		$	10,063

Income (loss) from operations	2,089		690		(707		)	(2,317		)	(245		)

Interest expense, net	—		—		—			(37		)	(37		)
Change in fair value of derivative liabilities	—		—		—			(683		)	(683		)
Income tax expense	—		—		—			—			—
Depreciation and amortization	—		—		—			201			201



	Nine Months Ended September 30, 2017
(In thousands)	Core		OEM		Advanced Energy			Corporate (Other)			Total
Sales	$	20,959	$	2,030	$	4,546		$	—		$	27,535

Income (loss) from operations ⁽¹⁾	6,471		1,031		(3,821		)	(7,858		)	(4,177		)

Interest expense, net	—		—		—			(103		)	(103		)
Change in fair value of derivative liabilities	—		—		—			57			57
Income tax expense	—		—		—			15			15
Depreciation and amortization	—		—		—			527			527



	Nine Months Ended September 30, 2016
(In thousands)	Core		OEM		Advanced Energy			Corporate (Other)			Total
Sales	$	20,261	$	4,351	$	2,521		$	—		$	27,133

Income (loss) from operations	5,047		2,498		(3,331		)	(6,962		)	(2,748		)

Interest expense, net	—		—		—			(125		)	(125		)
Change in fair value of derivative liabilities	—		—		—			(555		)	(555		)
Income tax expense	—		—		—			—			—
Depreciation and amortization	—		—		—			355			556

(1)

During the first and second quarter of 2017, marketing expenses were considered as attributable only to the Corporate (Other) segment in the line Income (loss) from operations. Beginning with the third quarter of 2017, it was determined that certain marketing expenses are attributable to specific segments. The disclosure of Income (loss) from operations was updated for the third quarter of 2017 to reflect marketing expense by segment.

We derive revenues from four major product lines: Electrosurgical, Cauteries, Lighting and Other products. We do not review or analyze our four major product lines below net sales. Sales for the product lines are summarized as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2017		2016		2017		2016
Sales by Product Line
Electrosurgical	$	6,205	$	5,690	$	17,741	$	15,020
Cauteries	1,696		1,863		5,224		5,417
Lighting	573		740		1,966		2,046
Other	873		1,770		2,604		4,650
Total	$	9,347	$	10,063	$	27,535	$	27,133

International sales represented approximately 14.6% and 14.0% of total revenues for the three and nine months ended September 30, 2017, respectively, as compared with 13.2% and 14.9% of total revenues for the three and nine months ended September 30, 2016. Substantially all of these sales are denominated in U.S. dollars. Revenue by geographic region, based on the "ship to" location on the invoice are as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2017		2016		2017		2016
Sales by Domestic and International
Domestic	$	7,978	$	8,730	$	23,678	$	23,102
International	1,369		1,333		3,857		4,031
Total	$	9,347	$	10,063	$	27,535	$	27,133