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SEGMENTS AND CONCENTRATIONS | 12 Months Ended
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Dec. 31, 2024
Segment Reporting [Abstract] |
SEGMENTS AND CONCENTRATIONS | NOTE 19. SEGMENTS AND CONCENTRATIONS In 2023, the Company operated its business on the basis of a single reportable segment due to the lack of discrete, precise financial information available to the chief operating decision maker (“CODM”). The CODM is the Chief Executive Officer. The CODM does not review segment assets when assessing segment performance and deciding how to allocate resources. During 2024, refinements were made to the financial reporting information and the Company began reporting on two reportable segments which were generally determined based on the decision-making structure of the Company and the grouping of similar products and services: Branded and ImprimisRx.
| ● | The Branded segment includes activities of the Company’s FDA approved ophthalmology pharmaceutical products, including the out-licensing of rights to certain of our branded products.
| ● | The ImprimisRx segment represents activities in the Company’s ophthalmology-focused pharmaceutical compounding business.
Segment contribution for the segments represents net revenues less cost of sales, certain general and administrative expenses, selling and marketing expenses, and research and development expenses. The Company does not evaluate the following items at the segment level:
| ● | Selling, general and administrative expenses that result from shared infrastructure, including certain expenses associated with legal matters, public company costs (e.g. investor relations), Board of Directors and principal executive officers and other like shared expenses.
| ● | Operating expenses within selling, general and administrative expenses that result from the impact of corporate initiatives. Corporate initiatives primarily include integration, restructuring, acquisition and other shared costs.
| ● | Other select revenues and operating expenses including research and development expenses, amortization, and asset sales and impairments, net as not all such information has been accounted for at the segment level, or such information has not been used by all segments.
Segment net revenues, segment operating expenses and segment contribution information consisted of the following: SCHEDULE OF SEGMENT NET REVENUES
|  | Branded |  |  | ImprimisRx |  |  | Consolidated |
|  | Year Ended December 31, 2024 |
|  | Branded |  |  | ImprimisRx |  |  | Consolidated |
Product sales, net |  | $ | 115,120,000 |  |  | $ | 83,499,000 |  |  | $ | 198,619,000 |
Other revenues |  |  | 995,000 |  |  |  | - |  |  |  | 995,000 |
Total revenues |  |  | 116,115,000 |  |  |  | 83,499,000 |  |  |  | 199,614,000 |
Cost of sales |  |  | (21,667,000 | ) |  |  | (27,578,000 | ) |  |  | (49,245,000 | )
Gross profit |  |  | 94,448,000 |  |  |  | 55,921,000 |  |  |  | 150,369,000 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |
Selling, general and administrative |  |  | 62,301,000 |  |  |  | 23,607,000 |  |  |  | 85,908,000 |
Research and development |  |  | 2,890,000 |  |  |  | 386,000 |  |  |  | 3,276,000 |
Segment contribution |  | $ | 29,257,000 |  |  | $ | 31,928,000 |  |  |  | 61,185,000 |
Corporate |  |  |  |  |  |  |  |  |  |  | 43,409,000 |
Research and development |  |  |  |  |  |  |  |  |  |  | 8,954,000 |
Income from operations |  |  |  |  |  |  |  |  |  | $ | 8,822,000 |
|  | Branded |  |  | ImprimisRx |  |  | Consolidated |
|  | Year Ended December 31, 2023 |
|  | Branded |  |  | ImprimisRx |  |  | Consolidated |
Product sales, net |  | $ | 37,512,000 |  |  | $ | 79,935,000 |  |  | $ | 117,447,000 |
Other revenues |  |  | 12,746,000 |  |  |  | - |  |  |  | 12,746,000 |
Total revenues |  |  | 50,258,000 |  |  |  | 79,935,000 |  |  |  | 130,193,000 |
Cost of sales |  |  | (12,662,000 | ) |  |  | (26,978,000 | ) |  |  | (39,640,000 | )
Gross profit |  |  | 37,596,000 |  |  |  | 52,957,000 |  |  |  | 90,553,000 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |
Selling, general and administrative |  |  | 18,126,000 |  |  |  | 29,210,000 |  |  |  | 47,336,000 |
Research and development |  |  | 641,000 |  |  |  | 966,000 |  |  |  | 1,607,000 |
Segment contribution |  | $ | 18,829,000 |  |  | $ | 22,781,000 |  |  |  | 41,610,000 |
Corporate |  |  |  |  |  |  |  |  |  |  | 36,134,000 |
Research and development |  |  |  |  |  |  |  |  |  |  | 5,045,000 |
Income from operations |  |  |  |  |  |  |  |  |  | $ | 431,000 |
Substantially all revenue is attributable to the U.S. All long-lived assets at December 31, 2024 and 2023 were located in the U.S. Revenues by segment are further described as follows: SCHEDULE OF REVENUES BY SEGMENT
|  | For the Years Ended |
|  | December 31, |
|  | 2024 |  |  | % |  |  | 2023 |  |  | % |
IHEEZO |  | $ | 49,303,000 |  |  |  | 25 | % |  | $ | 20,621,000 |  |  |  | 16 | %
VEVYE |  |  | 28,061,000 |  |  |  | 14 | % |  |  | 1,766,000 |  |  |  | 1 | %
Other branded products |  |  | 37,836,000 |  |  |  | 19 | % |  |  | 15,125,000 |  |  |  | 12 | %
Other revenue, net |  |  | 915,000 |  |  |  | 0 | % |  |  | 12,746,000 |  |  |  | 10 | %
Branded revenue, net |  |  | 116,115,000 |  |  |  | 58 | % |  |  | 50,258,000 |  |  |  | 39 | %
ImprimisRx revenue, net |  |  | 83,499,000 |  |  |  | 42 | % |  |  | 79,935,000 |  |  |  | 61 | %
Total revenues, net |  | $ | 199,614,000 |  |  |  | 100 | % |  | $ | 130,193,000 |  |  |  | 100 | %
Other than IHEEZO, VEVYE, and one ImprimisRx product, no other products accounted for more than 10% of total revenues for the periods presented. Customer and Supplier Concentrations Substantially all of the Company’s Branded sales are made to third-party distributors who sell the products to pharmacies and to the end-users. There were two customers who comprised more than 10% of the Company’s Branded revenues for the year ended December 31, 2024 and one customer who comprised more than 10% of the Company’s Branded revenues for the year ended December 31, 2023. There were no customers who comprised more than 10% of ImprimisRx revenues for the years ended December 31, 2024 and 2023. As of December 31, 2024 and December 31, 2023, accounts receivable from two customers and one customer accounted for 94% and 80%, respectively, of total consolidated accounts receivable. The Company received its active pharmaceutical ingredients from two and three main suppliers during the years ended December 31, 2024 and 2023, respectively. These suppliers collectively accounted for 42% and 64% of active pharmaceutical ingredient purchases during the years ended December 31, 2024 and 2023, respectively.

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- Definition The entire disclosure for reporting segments including data and tables. 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