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Note 12 - Geographic and Segment Information
 3 Months Ended
Mar. 31, 2025
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

NOTE 12.     GEOGRAPHIC AND SEGMENT INFORMATION

 

Operating segments are aggregated into reportable segments only if they exhibit similar economic characteristics. In addition to similar economic characteristics, the Company also considers the following factors in determining the reportable segments: the nature of business activities, the management structure directly accountable to its Chief Operating Decision Maker ("CODM") for operating and administrative activities, availability of discrete financial information and information presented to the Board of Directors and investors. Charles D. Goodwin, CEO, is the Company's CODM. The CODM uses gross profit to assess segment performance and allocate resources, including employees and capital resources. The Company has included additional financial measures regularly reported to the CODM on a segment basis in the tables below along with a reconciliation between these measures and net income (loss). All other operating expenses are not regularly reported to the CODM on a segment basis. Asset information is not reviewed by the CODM by segment and is not available by segment. Accordingly, the Company has not presented a measure of assets by segment.

 

The Company’s reportable segments are disclosed as principally organized and managed as two operating segments: Advanced Energy and OEM. "Corporate & Other" includes certain unallocated corporate and administrative costs which were not specifically attributed to any reportable segment. The Advanced Energy segment is comprised primarily of sales of its Helium Plasma Technology products marketed and sold as Renuvion in the cosmetic surgery market. Renuvion and J-Plasma offer surgeons a unique ability to provide controlled heat to tissue to achieve their desired results. These sales consist of electrosurgical generators, single-use handpieces, accessories and related products sold in the cosmetic surgical market. The OEM segment is comprised primarily of sales related to the development and contract manufacturing of surgical devices, accessories and handpieces. 

 

Summarized financial information with respect to reportable segments is as follows:

 

   

Three Months Ended March 31, 2025

  

(In thousands)

  

Advanced Energy

    

OEM

    

Corporate & Other

    

Total

  

Sales

   $ 7,887     $ 1,543     $ —     $ 9,430  

Cost of sales

     2,320       1,445       —       3,765  

Gross profit

     5,567       98       —       5,665  
                                 

Commissions

     839       —       —       839  

All other expenses(i)

     4,713       6       3,158       7,877  

Income (loss) from operations

     15       92       (3,158 )     (3,051 )

Interest income

     —       —       304       304  

Interest expense

     —       —       (1,376 )     (1,376 )

Income (loss) before income taxes

     15       92       (4,230 )     (4,123 )

Income tax expense

     —       —       49       49  

Net income (loss)

     15       92       (4,279 )     (4,172 )

 

   

Three Months Ended March 31, 2024

  

(In thousands)

  

Advanced Energy

    

OEM

    

Corporate & Other

    

Total

  

Sales

   $ 7,453     $ 2,791     $ —     $ 10,244  

Cost of sales

     2,262       2,033       —       4,295  

Gross profit

     5,191       758       —       5,949  
                                 

Commissions

     717       —       —       717  

All other expenses(i)

     7,414       26       4,407       11,847  

(Loss) income from operations

     (2,940 )     732       (4,407 )     (6,615 )

Interest income

     —       —       495       495  

Interest expense

     —       —       (1,396 )     (1,396 )

Other loss, net

     —       —       (21 )     (21 )

(Loss) income before income taxes

     (2,940 )     732       (5,329 )     (7,537 )

Income tax expense

     —       —       53       53  

Net (loss) income

     (2,940 )     732       (5,382 )     (7,590 )

 

(i) For the Advanced Energy segment, all other expenses includes salaries and related costs, research and development, professional services, including marketing and physician consulting, and other selling, general, and administrative expenses such as travel and entertainment, advertising, trade show fees and meeting and training costs. For the OEM segment, substantially all related expenses are recorded as cost of sales, therefore no significant segment specific operating expenses are incurred. For Corporate & Other, all other expenses includes salaries and related costs, professional services, including legal, accounting and audit fees, investor relations consulting, information technology consulting, board of directors’ stock compensation expense, and general and administrative expenses, such as insurance, building lease costs, depreciation and computer software.

 

International sales represented approximately 28.5% of total revenues for the three months ended March 31, 2025, as compared with approximately 31.9% of total revenues for the three months ended March 31, 2024.

 

Sales by geographic region, based on the customer's “ship to” location on the invoice, are as follows:

 

   

Three Months Ended

  
   

March 31,

  

(In thousands)

  

2025

    

2024

  

Sales by Domestic and International

                

Domestic

   $ 6,743     $ 6,979  

International

     2,687       3,265  

Total

   $ 9,430     $ 10,244  

 

Tangible long-lived assets by geographic location are as follows:
 
    March 31,     December 31,  

(In thousands)

  

2025

    

2024

  

Long-lived assets by Domestic and International

                

Domestic

   $ 5,430     $ 5,532  

International

     1,107       1,206  

Total

   $ 6,537     $ 6,738