Revision of Previously Issued Consolidated Financial Statements

9 Months Ended

Sep. 30, 2025

Revision of Previously Issued Consolidated Financial Statements [Abstract]

Revision of Previously Issued Consolidated Financial Statements

Note 3

Revision of Previously Issued Consolidated Financial Statements:

Revisions

During the third quarter of 2025, the Company identified an error in its methodology for accruing sales tax liabilities that had resulted in a cumulative overstatement of accrued expenses and sales tax expense. The overstatement of accrued expenses resulted in an understatement of the carrying value of the dermatology recurring procedures reporting unit. During the years ended December 31, 2023 and 2024, the Company recorded impairment charges for the excess of the carrying value of the dermatology recurring procedures reporting unit over its fair value. The understatement of the carrying value for this reporting unit, as a result of the overstatement of accrued expenses and sales tax expense, has resulted in an additional goodwill impairment charge for the years ended December 31, 2023 and 2024. The error had no net impact on accumulated deficit as of January 1, 2024, but impacted subsequent quarterly and annual reporting periods through June 30, 2025. We assessed the materiality of the error on prior period consolidated financial statements in accordance with SEC Staff Accounting Bulletins No. 99 and No. 108, as codified in ASC 250, Accounting Changes and Error Corrections. Based on this assessment, in consideration of both quantitative and qualitative factors, we concluded that the error is not material to any previously presented interim or annual financial statements. We revised our financial statements for the periods impacted.

The following tables set forth the effects of the adjustment on affected items within the Company’s previously reported consolidated balance sheets for all impacted periods (in thousands):

	March 31, 2024
	As Previously Reported			Adjustment			As Revised

Goodwill	$	6,519		$	(822	)	$	5,697
Total assets	$	40,048		$	(822	)	$	39,226
Accrued expenses and other current liabilities	$	6,269		$	(824	)	$	5,445
Total current liabilities	$	12,588		$	(824	)	$	11,764
Total liabilities	$	30,616		$	(824	)	$	29,792
Accumulated deficit	$	(241,426	)	$	2		$	(241,424	)
Total stockholders’ equity	$	9,432		$	2		$	9,434
Total liabilities and stockholders’ equity	$	40,048		$	(822	)	$	39,226

	June 30, 2024
	As Previously Reported			Adjustment			As Revised

Goodwill	$	6,519		$	(822	)	$	5,697
Total assets	$	39,581		$	(822	)	$	38,759
Accrued expenses and other current liabilities	$	6,608		$	(832	)	$	5,776
Total current liabilities	$	12,133		$	(832	)	$	11,301
Total liabilities	$	30,085		$	(832	)	$	29,253
Accumulated deficit	$	(241,525	)	$	10		$	(241,515	)
Total stockholders’ equity	$	9,496		$	10		$	9,506
Total liabilities and stockholders’ equity	$	39,581		$	(822	)	$	38,759

	September 30, 2024
	As Previously Reported			Adjustment			As Revised

Goodwill	$	6,519		$	(822	)	$	5,697
Total assets	$	40,205		$	(822	)	$	39,383
Accrued expenses and other current liabilities	$	8,524		$	(881	)	$	7,643
Total current liabilities	$	14,046		$	(881	)	$	13,165
Total liabilities	$	30,862		$	(881	)	$	29,981
Accumulated deficit	$	(243,647	)	$	58		$	(243,589	)
Total stockholders’ equity	$	9,343		$	58		$	9,401
Total liabilities and stockholders’ equity	$	40,205		$	(822	)	$	39,383

	December 31, 2024
	As Previously Reported		Adjustment			As Revised

Goodwill	$	2,658	$	(1,229	)	$	1,429
Total assets	$	36,157	$	(1,229	)	$	34,928
Accrued expenses and other current liabilities	$	8,593	$	(1,229	)	$	7,364
Total current liabilities	$	14,625	$	(1,229	)	$	13,396
Total liabilities	$	31,185	$	(1,229	)	$	29,956
Total liabilities and stockholders’ equity	$	36,157	$	(1,229	)	$	34,928

	March 31, 2025
	As Previously Reported			Adjustment			As Revised

Goodwill	$	2,658		$	(1,229	)	$	1,429
Total assets	$	34,262		$	(1,229	)	$	33,033
Accrued expenses and other current liabilities	$	8,779		$	(1,539	)	$	7,240
Total current liabilities	$	15,139		$	(1,539	)	$	13,600
Total liabilities	$	31,593		$	(1,539	)	$	30,054
Accumulated deficit	$	(250,576	)	$	310		$	(250,266	)
Total stockholders’ equity	$	2,669		$	310		$	2,979
Total liabilities and stockholders’ equity	$	34,262		$	(1,229	)	$	33,033

	June 30, 2025
	As Previously Reported			Adjustment			As Revised

Goodwill	$	2,658		$	(1,229	)	$	1,429
Total assets	$	30,722		$	(1,229	)	$	29,493
Accrued expenses and other current liabilities	$	7,401		$	(1,453	)	$	5,948
Total current liabilities	$	14,004		$	(1,453	)	$	12,551
Total liabilities	$	30,414		$	(1,453	)	$	28,961
Accumulated deficit	$	(253,065	)	$	224		$	(252,841	)
Total stockholders’ equity	$	308		$	224		$	532
Total liabilities and stockholders’ equity	$	30,722		$	(1,229	)	$	29,493

The following tables set forth the effects of the adjustment on affected items within the Company’s previously reported consolidated statements of operations for all impacted periods (in thousands, except per share data):

	Three Months Ended March 31, 2024
	As Previously Reported			Adjustment			As Revised

General and administrative	$	2,710		$	(2	)	$	2,708
Total operating expenses	$	6,085		$	(2	)	$	6,083
Loss from operations	$	(2,889	)	$	2		$	(2,887	)
Net loss	$	(3,368	)	$	2		$	(3,366	)
Net loss per share of common stock, basic and diluted	$	(0.10	)	$	—		$	(0.10	)

	Three Months Ended June 30, 2024
	As Previously Reported			Adjustment			As Revised

General and administrative	$	2,210		$	(8	)	$	2,202
Total operating expenses	$	5,463		$	(8	)	$	5,455
Loss from operations	$	(486	)	$	8		$	(478	)
Net loss	$	(99	)	$	8		$	(91	)
Net loss per share of common stock, basic and diluted	$	(0.03	)	$	—		$	(0.03	)

	Six Months Ended June 30, 2024
	As Previously Reported			Adjustment			As Revised

General and administrative	$	4,920		$	(10	)	$	4,910
Total operating expenses	$	11,548		$	(10	)	$	11,538
Loss from operations	$	(3,375	)	$	10		$	(3,365	)
Net loss	$	(3,467	)	$	10		$	(3,457	)
Net loss per share of common stock, basic and diluted	$	(0.99	)	$	—		$	(0.99	)

	Three Months Ended September 30, 2024
	As Previously Reported			Adjustment			As Revised

General and administrative	$	3,669		$	(48	)	$	3,621
Total operating expenses	$	6,939		$	(48	)	$	6,891
Loss from operations	$	(1,653	)	$	48		$	(1,605	)
Net loss	$	(2,122	)	$	48		$	(2,074	)
Net loss per share of common stock, basic and diluted	$	(0.53	)	$	0.02		$	(0.51	)

	Nine Months Ended September 30, 2024
	As Previously Reported			Adjustment			As Revised

General and administrative	$	8,589		$	(58	)	$	8,531
Total operating expenses	$	18,487		$	(58	)	$	18,429
Loss from operations	$	(5,028	)	$	58		$	(4,970	)
Net loss	$	(5,589	)	$	58		$	(5,531	)
Net loss per share of common stock, basic and diluted	$	(1.52	)	$	0.02		$	(1.50	)

	Year Ended December 31, 2024
	As Previously Reported		Adjustment			As Revised

General and administrative	$	11,303	$	(407	)	$	10,896
Impairment of goodwill	$	3,861	$	407		$	4,268

	Three Months Ended March 31, 2025
	As Previously Reported			Adjustment			As Revised

General and administrative	$	2,573		$	(310	)	$	2,263
Total operating expenses	$	5,792		$	(310	)	$	5,482
Loss from operations	$	(2,015	)	$	310		$	(1,705	)
Net loss	$	(2,432	)	$	310		$	(2,122	)
Net loss per share of common stock, basic and diluted	$	(0.58	)	$	0.07		$	(0.51	)

	Three Months Ended June 30, 2025
	As Previously Reported			Adjustment			As Revised

General and administrative	$	2,911		$	86		$	2,997
Total operating expenses	$	6,530		$	86		$	6,616
Loss from operations	$	(2,224	)	$	(86	)	$	(2,310	)
Net loss	$	(2,489	)	$	(86	)	$	(2,575	)
Net loss per share of common stock, basic and diluted	$	(0.60	)	$	(0.02	)	$	(0.62	)

	Six Months Ended June 30, 2025
	As Previously Reported			Adjustment			As Revised

General and administrative	$	5,484		$	(224	)	$	5,260
Total operating expenses	$	12,322		$	(224	)	$	12,098
Loss from operations	$	(4,239	)	$	224		$	(4,015	)
Net loss	$	(4,921	)	$	224		$	(4,697	)
Net loss per share of common stock, basic and diluted	$	(1.18	)	$	0.05		$	(1.13	)

The adjustment had no net effect on the Company’s previously reported cash flows from operating activities, and it had no effect on the previously reported cash flows from investing and financing activities.

Reclassifications

Certain prior period amounts have been reclassified to conform to the current period presentation, including the presentation of foreign revenues within the Company’s business and geographical reporting segment disclosures and the classification of certain international service fees between cost of revenues and selling and marketing expenses. These reclassifications had no impact on the previously reported total foreign revenues or loss from operations by reporting segment in the condensed consolidated financial statements. The amounts for total operating expenses “As Previously Reported” above include the impact of the international service fees reclassification.