Segment Information

3 Months Ended

Mar. 31, 2022

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 months ended March 31, 2022 and 2021 (amounts in thousands):

	For the three months ended
	March 31, 2022			March 31, 2021
Net revenues
Diagnostic services	$	44,913		$	12,737
Consumer products		2,618			2,534
Consolidated net revenue		47,531			15,271
Cost of revenue
Diagnostic services		16,702			4,345
Consumer products		2,152			1,999
Consolidated cost of revenue		18,854			6,344
Depreciation and amortization expense
Diagnostic services		576			345
Consumer products		600			3
Total Depreciation and amortization expense		1,176			348
Operating and other expenses		11,591			7,522
Income (loss) from operations, before income taxes
Diagnostic services		20,026			2,839
Consumer products		(1,863	)		(35	)
Unallocated corporate		(2,253	)		(1,747	)
Total income from operations, before income taxes		15,910			1,057
Income tax expense		(3,416	)		-
Total income from operations, after income taxes		12,494			1,057
Net income	$	12,494		$	1,057

The following table is a summary of segment information as of March 31, 2022 and December 31, 2021 (amounts in thousands):

	March 31, 2022		December 31, 2021
ASSETS
Diagnostic services	$	51,823	$	51,150
Consumer products		23,378		24,139
Unallocated corporate		24,464		14,006
Total assets	$	99,665	$	89,295