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Note 12 - Geographic and Segment Information
 9 Months Ended
Sep. 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: Surgical Aesthetics, formerly known as Advanced Energy, and OEM. “Corporate & Other” includes certain unallocated corporate and administrative costs which were not specifically attributed to any reportable segment. The Surgical Aesthetics segment is comprised primarily of sales of its Helium Plasma Technology products marketed and sold as Renuvion and the AYON Body Contouring System 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 AYON Body Contouring System is an FDA-cleared, surgeon-designed body contouring system that combines precision, versatility, and innovation in an all-in-one platform. It seamlessly integrates fat removal, closed loop contouring, and Renuvion’s tissue contraction and electrosurgical capabilities, empowering surgeons to deliver comprehensive body contouring treatments for patients. 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 September 30, 2025

 

(In thousands)

 

Surgical Aesthetics

  

OEM

  

Corporate & Other

  

Total

 

Sales

 $11,065  $1,812  $—  $12,877 

Cost of sales

  3,438   1,142   —   4,580 

Gross profit

  7,627   670   —   8,297 
                 

Commissions

  1,255   —   —   1,255 

All other expenses(i)

  4,477   3   3,394   7,874 

Income (loss) from operations

  1,895   667   (3,394)  (832)

Interest income

  —   —   292   292 

Interest expense

  —   —   (1,413)  (1,413)

Other income, net

  —   —   76   76 

Income (loss) before income taxes

  1,895   667   (4,439)  (1,877)

Income tax expense

  —   —   78   78 

Net income (loss)

  1,895   667   (4,517)  (1,955)

 

  

Three Months Ended September 30, 2024

 

(In thousands)

 

Surgical Aesthetics

  

OEM

  

Corporate & Other

  

Total

 

Sales

 $9,288  $2,199  $—  $11,487 

Cost of sales

  2,716   1,817   —   4,533 

Gross profit

  6,572   382   —   6,954 
                 

Commissions

  1,132   —   —   1,132 

All other expenses(i)

  5,909   9   3,539   9,457 

(Loss) income from operations

  (469)  373   (3,539)  (3,635)

Interest income

  —   —   378   378 

Interest expense

  —   —   (1,431)  (1,431)

Other income, net

  —   —   24   24 

(Loss) income before income taxes

  (469)  373   (4,568)  (4,664)

Income tax expense

  —   —   60   60 

Net (loss) income

  (469)  373   (4,628)  (4,724)

 

  

Nine Months Ended September 30, 2025

 

(In thousands)

 

Surgical Aesthetics

  

OEM

  

Corporate & Other

  

Total

 

Sales

 $28,622  $5,058  $—  $33,680 

Cost of sales

  8,530   4,105   —   12,635 

Gross profit

  20,092   953   —   21,045 
                 

Commissions

  3,046   —   —   3,046 

All other expenses(i)

  14,474   13   9,969   24,456 

Income (loss) from operations

  2,572   940   (9,969)  (6,457)

Interest income

  —   —   874   874 

Interest expense

  —   —   (4,182)  (4,182)

Other income, net

  —   —   76   76 

Income (loss) income before income taxes

  2,572   940   (13,201)  (9,689)

Income tax expense

  —   —   176   176 

Net income (loss)

  2,572   940   (13,377)  (9,865)

 

  

Nine Months Ended September 30, 2024

 

(In thousands)

 

Surgical Aesthetics

  

OEM

  

Corporate & Other

  

Total

 

Sales

 $26,507  $7,373  $—  $33,880 

Cost of sales

  7,712   5,772   —   13,484 

Gross profit

  18,795   1,601   —   20,396 
                 

Commissions

  2,972   —   —   2,972 

All other expenses(i)

  20,928   35   12,258   33,221 

(Loss) income from operations

  (5,105)  1,566   (12,258)  (15,797)

Interest income

  —   —   1,312   1,312 

Interest expense

  —   —   (4,254)  (4,254)

Other income, net

  —   —   2   2 

(Loss) income before income taxes

  (5,105)  1,566   (15,198)  (18,737)

Income tax expense

  —   —   163   163 

Net (loss) income

  (5,105)  1,566   (15,361)  (18,900)

 

(i) For the Surgical Aesthetics 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 27.5% and 29.2% of total revenues for the three and nine months ended September 30, 2025, respectively, as compared with approximately 32.2% and 30.8% of total revenues for the three and nine months ended September 30, 2024, respectively.

 

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

 

  

Three Months Ended

  

Nine Months Ended

 
  

September 30,

  

September 30,

 

(In thousands)

 

2025

  

2024

  

2025

  

2024

 

Sales by Domestic and International

                

Domestic

 $9,332  $7,793  $23,851  $23,459 

International

  3,545   3,694   9,829   10,421 

Total

 $12,877  $11,487  $33,680  $33,880 

 

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

(In thousands)

 

2025

  

2024

 

Long-lived assets by Domestic and International

        

Domestic

 $5,701  $5,532 

International

  1,064   1,206 

Total

 $6,765  $6,738