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Business and Geographical Reporting Segments
12 Months Ended
Dec. 31, 2023
Business and Geographical Reporting Segments [Abstract]  
Business and Geographical Reporting Segments
15. Business and Geographical Reporting Segments


The Company organized its business into two operating segments to better align its organization based upon the Company’s management structure, products and services offered, markets served and types of customers, as follows. The Dermatology Recurring Procedures segment derives its revenues from the usage of its equipment by dermatologists to perform XTRAC procedures. The Dermatology Procedures Equipment segment generates revenues from the sale of equipment, such as lasers and lamp products. 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) is also not allocated to the operating segments.


The following tables reflect results of operations from our business segments for the periods indicated below (in thousands, except gross profit %):

Year Ended December 31, 2023  
Dermatology
Recurring Procedures
   
Dermatology
Procedures Equipment
   
Total
 
Revenues
 
$
21,530
   
$
11,828
   
$
33,358
 
Cost of revenues
   
8,729
     
6,168
     
14,897
 
Gross profit
   
12,801
     
5,660
     
18,461
 
Gross profit %
   
59.5
%
   
47.9
%
   
55.3
%
                         
Allocated expenses:
                       
Engineering and product development
   
1,011
     
306
     
1,317
 
Selling and marketing
   
11,169
     
1,787
     
12,956
 
Impairment of goodwill
    2,284             2,284  
Unallocated expenses
   
     
     
10,508
 
     
14,464
     
2,093
     
27,065
 
(Loss) income from operations
   
(1,663
)
   
3,567
     
(8,604
)
Interest expense
   
     
     
(1,640
)
Interest income
                231  
Loss on debt extinguishment
                (909 )
(Loss) income before benefit from / (provision for) income taxes
 
$
(1,663
)
 
$
3,567
   
$
(10,922
)

Year Ended December 31, 2022  
Dermatology
Recurring Procedures
   
Dermatology
Procedures Equipment
   
Total
 
Revenues
 
$
23,025
   
$
13,136
   
$
36,161
 
Cost of revenues
   
8,371
     
6,022
     
14,393
 
Gross profit
   
14,654
     
7,114
     
21,768
 
Gross profit %
   
63.6
%
   
54.2
%
   
60.2
%
                         
Allocated expenses:
                       
Engineering and product development
   
672
     
357
     
1,029
 
Selling and marketing
   
13,503
     
1,798
     
15,301
 
Unallocated expenses
   
     
     
10,087
 
     
14,175
     
2,155
     
26,417
 
Income (loss) from operations
   
479
     
4,959
     
(4,649
)
Interest expense
   
     
     
(926
)
Interest income
   

     

     
89
 
Income (loss) before benefit from / (provision for) income taxes
 
$
479
   
$
4,959
   
$
(5,486
)


For the years ended December 31, 2023 and 2022, depreciation and amortization by reportable segment were as follows (in thousands):

 
 
Year Ended December 31,
 
 
 
2023
   
2022
 
Dermatology recurring procedures
 
$
4,793
   
$
4,421
 
Dermatology procedures equipment
   
746
     
857
 
Unallocated expenses
   
14
     
15
 
Total
 
$
5,553
   
$
5,293
 


The following tables present the Company’s revenue disaggregated by geographical region for the years ended December 31, 2023 and 2022 (in thousands). Domestic refers to revenue from customers based in the United States, and foreign revenue is derived from the Company’s distributors primarily in Asia.


Year Ended December 31, 2023
  Dermatology Recurring Procedures    
Dermatology Procedures Equipment
   
Total
 
Domestic
 
$
20,215
   
$
2,813
   
$
23,028
 
China
          3,340       3,340  
Korea
    673       2,055       2,728  
Other foreign
   
642
     
3,620
     
4,262
 
Total
 
$
21,530
   
$
11,828
   
$
33,358
 


Year Ended December 31, 2022
  Dermatology Recurring Procedures    
Dermatology Procedures Equipment
   
Total
 
Domestic
 
$
21,585
   
$
2,396
   
$
23,981
 
China
    195       4,556       4,751  
Korea
    888       2,828       3,716  
Other foreign
   
357
     
3,356
     
3,713
 
Total
 
$
23,025
   
$
13,136
   
$
36,161
 


As of December 31, 2023 and 2022, total assets by reportable segment were as follows (in thousands):

 
 
December 31,
 

 
2023
   
2022
 
Dermatology recurring procedures
 
$
28,137
   
$
37,230
 
Dermatology procedures equipment
   
5,507
     
7,890
 
Other unallocated assets
   
8,372
     
7,152
 
Total
 
$
42,016
   
$
52,272
 
 

Long-lived assets of $0.8 million and $0.6 million were located in international markets, primarily Korea and Japan, as of December 31, 2023 and 2022, respectively, with the remainder located in domestic markets.