Segment Information

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Segment Information

Note 15 - Segment Information

The Company has identified two operating segments, diagnostic services and consumer products, based on the manner in which the Company’s CEO as CODM assesses performance and allocates resources across the organization. The operating segments are organized in a manner that depicts the difference in revenue generating synergies that include the separate processes, profit generation and growth of each segment. The diagnostic services segment provides COVID-19 diagnostic information services to a broad range of customers in the United States, including health plans, third party payers and government organizations. The consumer products segment is engaged in the research, development, manufacture, distribution, marketing and sale of OTC consumer healthcare products and dietary supplements in the United States and also provides personal genomics products and services. The unallocated corporate expenses mainly included professional fees associated with the public company.

ProPhase Labs, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(unaudited)

The following table is a summary of segment information for three and nine months ended September 30, 2021 and 2020 (amounts in thousands): 

	For the three months ended						For the nine months ended
	September 30, 2021			September 30, 2020			September 30, 2021			September 30, 2020
Net revenues
Diagnostic services	$	7,142		$	-		$	27,416		$	-
Consumer products		2,330			3,840			6,469			9,351
Consolidated net revenue		9,472			3,840			33,885			9,351
Cost of revenue
Diagnostic services		4,009			-			11,833			-
Consumer products		1,486			2,798			4,682			6,615
Consolidated cost of revenue		5,495			2,798			16,515			6,615
Depreciation and amortization expense
Diagnostic services		401			-			1,138			-
Consumer products		-			3			6			13
Total Depreciation and amortization expense		401			3			1,144			13
Operating and other expenses		13,020			1,608			20,542			4,031
Income (loss) from continuing operations, before income taxes
Diagnostic services		(1,145	)		-			2,859			-
Consumer products		(958	)		1,039			(453	)		2,723
Unallocated corporate		(1,875	)		(1,608	)		(6,722	)		(4,031	)
Total loss from continuing operations, before income taxes		(3,978	)		(569	)		(4,316	)		(1,308	)
Income from discontinued operations, before income taxes		-			161			-			161
Net loss	$	(3,978	)	$	(408	)	$	(4,316	)	$	(1,147	)

The following table is a summary of segment balance sheets information as of September 30, 2021 and December 31, 2020 (in thousands):

	September 30,		December 31,
	2021		2020
ASSETS
Diagnostic services	$	28,738	$	13,410
Consumer products		20,986		6,261
Unallocated corporate		22,906		11,734
Total assets	$	72,630	$	31,405