v3.26.1
Revision of Previously Issued Consolidated Financial Statements
 12 Months Ended
Dec. 31, 2025
Revision of Previously Issued Consolidated Financial Statements [Abstract]  
Revision of Previously Issued Consolidated Financial Statements
3. Revision of Previously Issued Consolidated Financial Statements

Revisions

During the third quarter of 2025, the Company identified an error in its methodology for accruing sales tax liabilities that had resulted in a cumulative overstatement of accrued expenses and sales tax expense. The overstatement of accrued expenses resulted in an understatement of the carrying value of the dermatology recurring procedures reporting unit. During the years ended December 31, 2023 and 2024, the Company recorded impairment charges for the excess of the carrying value of the dermatology recurring procedures reporting unit over its fair value. The understatement of the carrying value for this reporting unit, as a result of the overstatement of accrued expenses and sales tax expense, resulted in an additional goodwill impairment charge for the years ended December 31, 2023 and 2024. The error had no net impact on accumulated deficit as of January 1, 2024, but impacted subsequent quarterly and annual reporting periods through June 30, 2025. The Company assessed the materiality of the error on prior period consolidated financial statements in accordance with Securities and Exchange Commission (“SEC”) Staff Accounting Bulletins No. 99 and No. 108, as codified in ASC 250, Accounting Changes and Error Corrections. Based on this assessment, in consideration of both quantitative and qualitative factors, the Company concluded that the error is not material to any previously presented interim or annual financial statements. The Company revised its financial statements for the periods impacted.
The following tables set forth the effects of the adjustment on affected items within the Company’s previously reported consolidated balance sheets for all impacted periods (in thousands):

   
March 31, 2024
  
   
As Previously Reported
    
Adjustment
    
As Revised
  
                   
Goodwill
  
$
6,519
    
$
(822
)
  
$
5,697
  
Total assets
  
$
40,048
    
$
(822
)
  
$
39,226
  
Accrued expenses and other current liabilities
  
$
6,269
    
$
(824
)
  
$
5,445
  
Total current liabilities
  
$
12,588
    
$
(824
)
  
$
11,764
  
Total liabilities
  
$
30,616
    
$
(824
)
  
$
29,792
  
Accumulated deficit
  
$
(241,426
)
  
$
2
    
$
(241,424
)
Total stockholders’ equity
  
$
9,432
    
$
2
    
$
9,434
  
Total liabilities and stockholders’ equity
  
$
40,048
    
$
(822
)
  
$
39,226
  

   
June 30, 2024
  
   
As Previously Reported
    
Adjustment
    
As Revised
  
                   
Goodwill
  
$
6,519
    
$
(822
)
  
$
5,697
  
Total assets
  
$
39,581
    
$
(822
)
  
$
38,759
  
Accrued expenses and other current liabilities
  
$
6,608
    
$
(832
)
  
$
5,776
  
Total current liabilities
  
$
12,133
    
$
(832
)
  
$
11,301
  
Total liabilities
  
$
30,085
    
$
(832
)
  
$
29,253
  
Accumulated deficit
  
$
(241,525
)
  
$
10
    
$
(241,515
)
Total stockholders’ equity
  
$
9,496
    
$
10
    
$
9,506
  
Total liabilities and stockholders’ equity
  
$
39,581
    
$
(822
)
  
$
38,759
  

   
September 30, 2024
  
   
As Previously Reported
    
Adjustment
    
As Revised
  
                   
Goodwill
  
$
6,519
    
$
(822
)
  
$
5,697
  
Total assets
  
$
40,205
    
$
(822
)
  
$
39,383
  
Accrued expenses and other current liabilities
  
$
8,524
    
$
(881
)
  
$
7,643
  
Total current liabilities
  
$
14,046
    
$
(881
)
  
$
13,165
  
Total liabilities
  
$
30,862
    
$
(881
)
  
$
29,981
  
Accumulated deficit
  
$
(243,647
)
  
$
58
    
$
(243,589
)
Total stockholders’ equity
  
$
9,343
    
$
58
    
$
9,401
  
Total liabilities and stockholders’ equity
  
$
40,205
    
$
(822
)
  
$
39,383
  
   
December 31, 2024
  
   
As Previously Reported
    
Adjustment
    
As Revised
  
                   
Goodwill
  
$
2,658
    
$
(1,229
)
  
$
1,429
  
Total assets
  
$
36,157
    
$
(1,229
)
  
$
34,928
  
Accrued expenses and other current liabilities
  
$
8,593
    
$
(1,229
)
  
$
7,364
  
Total current liabilities
  
$
14,625
    
$
(1,229
)
  
$
13,396
  
Total liabilities
  
$
31,185
    
$
(1,229
)
  
$
29,956
  
Total liabilities and stockholders’ equity
  
$
36,157
    
$
(1,229
)
  
$
34,928
  

   
March 31, 2025
  
   
As Previously Reported
    
Adjustment
    
As Revised
  
                   
Goodwill
  
$
2,658
    
$
(1,229
)
  
$
1,429
  
Total assets
  
$
34,262
    
$
(1,229
)
  
$
33,033
  
Accrued expenses and other current liabilities
  
$
8,779
    
$
(1,539
)
  
$
7,240
  
Total current liabilities
  
$
15,139
    
$
(1,539
)
  
$
13,600
  
Total liabilities
  
$
31,593
    
$
(1,539
)
  
$
30,054
  
Accumulated deficit
  
$
(250,576
)
  
$
310
    
$
(250,266
)
Total stockholders’ equity
  
$
2,669
    
$
310
    
$
2,979
  
Total liabilities and stockholders’ equity
  
$
34,262
    
$
(1,229
)
  
$
33,033
  

   
June 30, 2025
  
   
As Previously Reported
    
Adjustment
    
As Revised
  
                   
Goodwill
  
$
2,658
    
$
(1,229
)
  
$
1,429
  
Total assets
  
$
30,722
    
$
(1,229
)
  
$
29,493
  
Accrued expenses and other current liabilities
  
$
7,401
    
$
(1,453
)
  
$
5,948
  
Total current liabilities
  
$
14,004
    
$
(1,453
)
  
$
12,551
  
Total liabilities
  
$
30,414
    
$
(1,453
)
  
$
28,961
  
Accumulated deficit
  
$
(253,065
)
  
$
224
    
$
(252,841
)
Total stockholders’ equity
  
$
308
    
$
224
    
$
532
  
Total liabilities and stockholders’ equity
  
$
30,722
    
$
(1,229
)
  
$
29,493
  

The following tables set forth the effects of the adjustment on affected items within the Company’s previously reported consolidated statements of operations for all impacted periods (in thousands, except per share data):

   
Three Months Ended March 31, 2024
  
   
As Previously Reported
    
Adjustment
    
As Revised
  
                   
General and administrative
  
$
2,710
    
$
(2
)
  
$
2,708
  
Total operating expenses
  
$
6,085
    
$
(2
)
  
$
6,083
  
Loss from operations
  
$
(2,889
)
  
$
2
    
$
(2,887
)
Net loss
  
$
(3,368
)
  
$
2
    
$
(3,366
)
Net loss per share of common stock, basic and diluted
  
$
(0.10
)
  
$
—
    
$
(0.10
)
   
Three Months Ended June 30, 2024
  
   
As Previously Reported
    
Adjustment
    
As Revised
  
                   
General and administrative
  
$
2,210
    
$
(8
)
  
$
2,202
  
Total operating expenses
  
$
5,463
    
$
(8
)
  
$
5,455
  
Loss from operations
  
$
(486
)
  
$
8
    
$
(478
)
Net loss
  
$
(99
)
  
$
8
    
$
(91
)
Net loss per share of common stock, basic and diluted
  
$
(0.03
)
  
$
—
    
$
(0.03
)

   
Six Months Ended June 30, 2024
  
   
As Previously Reported
    
Adjustment
    
As Revised
  
                   
General and administrative
  
$
4,920
    
$
(10
)
  
$
4,910
  
Total operating expenses
  
$
11,548
    
$
(10
)
  
$
11,538
  
Loss from operations
  
$
(3,375
)
  
$
10
    
$
(3,365
)
Net loss
  
$
(3,467
)
  
$
10
    
$
(3,457
)
Net loss per share of common stock, basic and diluted
  
$
(0.99
)
  
$
—
    
$
(0.99
)

   
Three Months Ended September 30, 2024
  
   
As Previously Reported
    
Adjustment
    
As Revised
  
                   
General and administrative
  
$
3,669
    
$
(48
)
  
$
3,621
  
Total operating expenses
  
$
6,939
    
$
(48
)
  
$
6,891
  
Loss from operations
  
$
(1,653
)
  
$
48
    
$
(1,605
)
Net loss
  
$
(2,122
)
  
$
48
    
$
(2,074
)
Net loss per share of common stock, basic and diluted
  
$
(0.53
)
  
$
0.02
    
$
(0.51
)

   
Nine Months Ended September 30, 2024
  
   
As Previously Reported
    
Adjustment
    
As Revised
  
                   
General and administrative
  
$
8,589
    
$
(58
)
  
$
8,531
  
Total operating expenses
  
$
18,487
    
$
(58
)
  
$
18,429
  
Loss from operations
  
$
(5,028
)
  
$
58
    
$
(4,970
)
Net loss
  
$
(5,589
)
  
$
58
    
$
(5,531
)
Net loss per share of common stock, basic and diluted
  
$
(1.52
)
  
$
0.02
    
$
(1.50
)

   
Year Ended December 31, 2024
  
   
As Previously Reported
    
Adjustment
    
As Revised
  
                   
General and administrative
  
$
11,303
    
$
(407
)
  
$
10,896
  
Impairment of goodwill
  
$
3,861
    
$
407
    
$
4,268
  

   
Three Months Ended March 31, 2025
  
   
As Previously Reported
    
Adjustment
    
As Revised
  
                   
General and administrative
  
$
2,573
    
$
(310
)
  
$
2,263
  
Total operating expenses
  
$
5,792
    
$
(310
)
  
$
5,482
  
Loss from operations
  
$
(2,015
)
  
$
310
    
$
(1,705
)
Net loss
  
$
(2,432
)
  
$
310
    
$
(2,122
)
Net loss per share of common stock, basic and diluted
  
$
(0.58
)
  
$
0.07
    
$
(0.51
)

   
Three Months Ended June 30, 2025
  
   
As Previously Reported
    
Adjustment
    
As Revised
  
                   
General and administrative
  
$
2,911
    
$
86
    
$
2,997
  
Total operating expenses
  
$
6,530
    
$
86
    
$
6,616
  
Loss from operations
  
$
(2,224
)
  
$
(86
)
  
$
(2,310
)
Net loss
  
$
(2,489
)
  
$
(86
)
  
$
(2,575
)
Net loss per share of common stock, basic and diluted
  
$
(0.60
)
  
$
(0.02
)
  
$
(0.62
)

   
Six Months Ended June 30, 2025
  
   
As Previously Reported
    
Adjustment
    
As Revised
  
                   
General and administrative
  
$
5,484
    
$
(224
)
  
$
5,260
  
Total operating expenses
  
$
12,322
    
$
(224
)
  
$
12,098
  
Loss from operations
  
$
(4,239
)
  
$
224
    
$
(4,015
)
Net loss
  
$
(4,921
)
  
$
224
    
$
(4,697
)
Net loss per share of common stock, basic and diluted
  
$
(1.18
)
  
$
0.05
    
$
(1.13
)

The adjustment had no net effect on the Company’s previously reported cash flows from operating activities, and it had no effect on the previously reported cash flows from investing and financing activities.

Reclassifications

Certain prior period amounts have been reclassified to conform to the current period presentation, including the presentation of foreign revenues within the Company’s business and geographical reporting segment disclosures and the classification of certain international service fees between cost of revenues and selling and marketing expenses. These reclassifications had no impact on the previously reported total foreign revenues or loss from operations by reporting segment in the consolidated financial statements. The amounts for total operating expenses “As Previously Reported” above include the impact of the international service fees reclassification.