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Note 12 - Geographic and Segment Information
 6 Months Ended
Jun. 30, 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 June 30, 2025

 

(In thousands)

 

Advanced Energy

  

OEM

  

Corporate & Other

  

Total

 

Sales

 $9,670  $1,703  $—  $11,373 

Cost of sales

  2,772   1,518   —   4,290 

Gross profit

  6,898   185   —   7,083 
                 

Commissions

  952   —   —   952 

All other expenses(i)

  5,284   4   3,417   8,705 

Income (loss) from operations

  662   181   (3,417)  (2,574)

Interest income

  —   —   278   278 

Interest expense

  —   —   (1,393)  (1,393)

Income (loss) before income taxes

  662   181   (4,532)  (3,689)

Income tax expense

  —   —   49   49 

Net income (loss)

  662   181   (4,581)  (3,738)

 

  

Three Months Ended June 30, 2024

 

(In thousands)

 

Advanced Energy

  

OEM

  

Corporate & Other

  

Total

 

Sales

 $9,766  $2,383  $—  $12,149 

Cost of sales

  2,734   1,922   —   4,656 

Gross profit

  7,032   461   —   7,493 
                 

Commissions

  1,123   —   —   1,123 

All other expenses(i)

  7,605   —   4,312   11,917 

(Loss) income from operations

  (1,696)  461   (4,312)  (5,547)

Interest income

  —   —   439   439 

Interest expense

  —   —   (1,427)  (1,427)

Other loss, net

  —   —   (1)  (1)

(Loss) income before income taxes

  (1,696)  461   (5,301)  (6,536)

Income tax expense

  —   —   50   50 

Net (loss) income

  (1,696)  461   (5,351)  (6,586)

 

  

Six Months Ended June 30, 2025

 

(In thousands)

 

Advanced Energy

  

OEM

  

Corporate & Other

  

Total

 

Sales

 $17,557  $3,246  $—  $20,803 

Cost of sales

  5,092   2,963   —   8,055 

Gross profit

  12,465   283   —   12,748 
                 

Commissions

  1,791   —   —   1,791 

All other expenses(i)

  9,997   10   6,575   16,582 

Income (loss) from operations

  677   273   (6,575)  (5,625)

Interest income

  —   —   582   582 

Interest expense

  —   —   (2,769)  (2,769)

Income (loss) income before income taxes

  677   273   (8,762)  (7,812)

Income tax expense

  —   —   98   98 

Net income (loss)

  677   273   (8,860)  (7,910)

 

  

Six Months Ended June 30, 2024

 

(In thousands)

 

Advanced Energy

  

OEM

  

Corporate & Other

  

Total

 

Sales

 $17,219  $5,174  $—  $22,393 

Cost of sales

  4,996   3,955   —   8,951 

Gross profit

  12,223   1,219   —   13,442 
                 

Commissions

  1,840   —   —   1,840 

All other expenses(i)

  15,019   26   8,719   23,764 

(Loss) income from operations

  (4,636)  1,193   (8,719)  (12,162)

Interest income

  —   —   934   934 

Interest expense

  —   —   (2,823)  (2,823)

Other income, net

  —   —   (22)  (22)

(Loss) income before income taxes

  (4,636)  1,193   (10,630)  (14,073)

Income tax expense

  —   —   103   103 

Net (loss) income

  (4,636)  1,193   (10,733)  (14,176)

 

(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 31.6% and 30.2% of total revenues for the three and six months ended June 30, 2025, respectively, as compared with approximately 28.5% and 30.0% of total revenues for the three and six months ended June 30, 2024, respectively.

 

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

 

  

Three Months Ended

  

Six Months Ended

 
  

June 30,

  

June 30,

 

(In thousands)

 

2025

  

2024

  

2025

  

2024

 

Sales by Domestic and International

                

Domestic

 $7,776  $8,687  $14,519  $15,666 

International

  3,597   3,462   6,284   6,727 

Total

 $11,373  $12,149  $20,803  $22,393 

 

Tangible long-lived assets by geographic location are as follows:
 
  June 30,  December 31, 

(In thousands)

 

2025

  

2024

 

Long-lived assets by Domestic and International

        

Domestic

 $5,517  $5,532 

International

  1,033   1,206 

Total

 $6,550  $6,738