Segment Information

9 Months Ended

Sep. 30, 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.

The following table is a summary of segment information for three and nine months ended September 30, 2022 and 2021 (amounts in thousands):

	For the three months ended						For the nine months ended
	September 30, 2022			September 30, 2021			September 30, 2022			September 30, 2021
Net revenues
Diagnostic services	$	20,541		$	7,142		$	91,613		$	27,416
Consumer products		3,659			2,330			9,211			6,469
Consolidated net revenue		24,200			9,472			100,824			33,885
Cost of revenue
Diagnostic services		8,452			4,009			33,558			11,833
Consumer products		3,775			1,486			7,895			4,682
Consolidated cost of revenue		12,227			5,495			41,453			16,515
Depreciation and amortization expense
Diagnostic services		584			401			1,755			1,138
Consumer products		435			-			1,637			6
Total Depreciation and amortization expense		1,019			401			3,392			1,144
Operating and other expenses		9,176			13,020			27,882			20,542
Income (loss) from operations, before income taxes
Diagnostic services		6,776			(1,145	)		39,671			2,859
Consumer products		(3,214	)		(958	)		(5,390	)		(453	)
Unallocated corporate		(1,785	)		(1,875	)		(6,184	)		(6,722	)
Total income from operations, before income taxes		1,777			(3,978	)		28,097			(4,316	)
Income tax expense		(809	)		-			(7,190	)		-
Total income (loss) from operations, after income taxes		968			(3,978	)		20,907			(4,316	)
Net income (loss)	$	968		$	(3,978	)	$	20,907		$	(4,316	)

ProPhase Labs, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(unaudited)

The following table is a summary of segment information as of September 30, 2022 and December 31, 2021 (amounts in thousands):

	September 30, 2022		December 31, 2021
ASSETS
Diagnostic services	$	53,631	$	51,150
Consumer products		22,373		24,139
Unallocated corporate		21,873		14,006
Total assets	$	97,877	$	89,295