v3.26.1
Business and Geographical Reporting Segments
 12 Months Ended
Dec. 31, 2025
Business and Geographical Reporting Segments [Abstract]  
Business and Geographical Reporting Segments
15. Business and Geographical Reporting Segments

The Company has 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. The Dermatology Recurring Procedures segment derives its revenues from the usage of its equipment by dermatologists to perform XTRAC and TheraClear procedures. The Dermatology Procedures Equipment segment generates revenues from the sale of equipment, such as lasers and lamp products. The Company’s chief operating decision maker (“CODM”) is the chief executive officer. The CODM 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 present results of operations from the Company’s business segments for the periods indicated below (in thousands, except gross profit %):

Year Ended December 31, 2025
  
Dermatology Recurring Procedures
    
Dermatology Procedures Equipment
    
Total
  
                   
Revenues, net
  
$
21,478
    
$
9,218
    
$
30,696
  
Cost of revenues
    
8,164
      
4,651
      
12,815
  
Gross profit
    
13,314
      
4,567
      
17,881
  
Gross profit %
    
62.0
%
    
49.5
%
    
58.3
%
                         
Allocated expenses:
                        
Engineering and product development
    
305
      
116
      
421
  
Selling and marketing
    
11,102
      
2,009
      
13,111
  
Unallocated expenses:
                        
General and administrative
    
—
      
—
      
10,184
  
Settlement gains
    
—
      
—
      
(1,135
)
Total allocated and unallocated expenses
    
11,407
      
2,125
      
22,581
  
Income (loss) from operations
    
1,907
      
2,442
      
(4,700
)
Interest expense
    
—
      
—
      
(1,959
)
Interest income
    
—
      
—
      
410
  
Income (loss) before provision for income taxes
  
$
1,907
    
$
2,442
    
$
(6,249
)
Year Ended December 31, 2024
  
Dermatology Recurring Procedures
    
Dermatology Procedures Equipment
    
Total
  
                   
Revenues, net
  
$
21,171
    
$
12,391
    
$
33,562
  
Cost of revenues
    
7,799
      
6,541
      
14,340
  
Gross profit
    
13,372
      
5,850
      
19,222
  
Gross profit %
    
63.2
%
    
47.2
%
    
57.3
%
                         
Allocated expenses:
                        
Engineering and product development
    
658
      
225
      
883
  
Selling and marketing
    
11,140
      
1,290
      
12,430
  
Impairment of goodwill
    
4,268
      
—
      
4,268
  
Unallocated expenses
    
—
      
—
      
10,896
  
Total allocated and unallocated expenses
    
16,066
      
1,515
      
28,477
  
(Loss) income from operations
    
(2,694
)
    
4,335
      
(9,255
)
Interest expense
    
—
      
—
      
(2,107
)
Interest income
    
—
      
—
      
242
  
Other income
    
—
      
—
      
864
  
(Loss) income before benefit from income taxes
  
$
(2,694
)
  
$
4,335
    
$
(10,256
)

For the years ended December 31, 2025 and 2024, depreciation and amortization by reportable segment were as follows (in thousands):

   
Year Ended December 31,
  
   
2025
    
2024
  
             
Dermatology recurring procedures
  
$
3,817
    
$
4,471
  
Dermatology procedures equipment
    
305
      
485
  
Unallocated expenses
    
1
      
12
  
Total
  
$
4,123
    
$
4,968
  

The following tables present the Company’s revenue disaggregated by geographical region for the years ended December 31, 2025 and 2024 (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, 2025
  
Dermatology Recurring Procedures
    
Dermatology Procedures Equipment
    
Total
  
                   
Domestic
  
$
19,572
    
$
1,012
    
$
20,584
  
China
    
—
      
3,355
      
3,355
  
Middle East
    
—
      
1,896
      
1,896
  
Other foreign
    
1,906
      
2,955
      
4,861
  
Total
  
$
21,478
    
$
9,218
    
$
30,696
  
Year Ended December 31, 2024
  
Dermatology Recurring Procedures
    
Dermatology Procedures Equipment
    
Total
  
                   
Domestic
  
$
19,531
    
$
1,357
    
$
20,888
  
China
    
—
      
4,069
      
4,069
  
Middle East
    
—
      
2,766
      
2,766
  
Other foreign
    
1,640
      
4,199
      
5,839
  
Total
  
$
21,171
    
$
12,391
    
$
33,562
  

As of December 31, 2025 and 2024, total assets by reportable segment were as follows (in thousands):

   
December 31,
  
   
2025
    
2024
  
             
Dermatology recurring procedures
  
$
15,744
    
$
20,521
  
Dermatology procedures equipment
    
6,102
      
5,081
  
Other unallocated assets
    
8,675
      
9,326
  
Total
  
$
30,521
    
$
34,928
  

Long-lived assets of $1.3 million were located in international markets, primarily Korea and Japan, as of both December 31, 2025 and 2024, with the remainder located in domestic markets.