Segment Reporting

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Segment Reporting

Note 12 – Segment Reporting

Operating segments are defined as components of an enterprise that engage in business activities for which discrete financial information is available and regularly reviewed by the chief operating decision maker (“CODM”) in deciding how to allocate resources and assess performance.

The Company’s CODM is the Chief Executive Officer. Each reportable segment generates revenue from the sale of medical equipment and related services and/or sale of supplies. The Company has determined there are two segments, Detection and Therapy.

The Detection segment consists of our advanced image analysis and workflow products, and the Therapy segment consists of our radiation therapy products, “Axxent,” and related services. The primary factors used by our CODM to allocate resources are based on revenues, gross profit, operating income, and earnings or loss before interest, taxes, depreciation, amortization, and other specific and non-recurring items of each segment. Included in segment operating income are stock compensation, amortization of technology and depreciation expense. There are no intersegment revenues.

The Company does not track assets by operating segment and our CODM does not use asset information by segment to allocate resources or make operating decisions.

Segment revenues, gross profit, segment operating income or loss, and a reconciliation of segment operating income or loss to US GAAP loss before income tax is as follows (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
Segment revenues:
Detection	$	4,117		$	5,209		$	8,593		$	9,377
Therapy		1,450			2,120			3,525			4,725
Total Revenue	$	5,567		$	7,329		$	12,118		$	14,102
Segment gross profit:
Detection	$	3,533		$	4,356		$	7,000		$	7,823
Therapy		824			1,370			1,867		$	3,185
Segment gross profit	$	4,357		$	5,726		$	8,867		$	11,008
Segment operating income (loss):
Detection	$	201		$	673		$	(145	)	$	975
Therapy		(432	)		(264	)		(1,438	)	$	(43	)
Segment operating income (loss)	$	(231	)	$	409		$	(1,583	)	$	932
General, administrative, depreciation and amortization expense	$	(2,080	)	$	(1,867	)	$	(4,621	)	$	(3,424	)
Interest expense		(115	)		(202	)		(245	)		(411	)
Other income		33			64			75			123
Loss on extinguishment of debt		—			—			(341	)		—
Fair value of convertible debentures		—			(1,915	)		(7,464	)		(4,440	)
Loss before income tax	$	(2,393	)	$	(3,511	)	$	(14,179	)	$	(7,220	)