Quarterly report pursuant to Section 13 or 15(d)

Operating Segments (Tables)

Operating Segments (Tables)

9 Months Ended

Sep. 30, 2022

Schedule of Segment Reporting Information

The table below presents certain financial information of our operating segments for the three and nine months ended September 30, 2022 and 2021 (in thousands).

Segment Reporting for the Quarter Ended September 30, 2022

	Treatment			Services			Segments Total			Corporate ⁽¹⁾			Consolidated Total
Revenue from external customers	$	8,877		$	9,595		$	18,472	$		—		$	18,472
Intercompany revenues		28			16			44			—			—
Gross profit		1,967			1,103			3,070			—			3,070
Research and development		55			—			55			14			69
Interest income		—			—			—			29			29
Interest expense		(20	)		(2	)		(22	)		(25	)		(47	)
Interest expense-financing fees		—			—			—			(16	)		(16	)
Depreciation and amortization		387			87			474			23			497
Segment income (loss) before income taxes		1,792			725			2,517			(1,514	)		1,003	⁽²⁾
Income tax expense		164			15			179			—			179
Segment income (loss)		1,628			710			2,338			(1,514	)		824
Expenditures for segment assets		149			39			188			1			189	⁽³⁾

Segment Reporting for the Nine Months Ended September 30, 2022

	Treatment			Services			Segments Total			Corporate ⁽¹⁾			Consolidated Total
Revenue from external customers	$	24,749		$	29,093		$	53,842			$ —		$	53,842
Intercompany revenues		28			43			71			—			—
Gross profit		4,168			3,422			7,590			—			7,590
Research and development		179			23			202			43			245
Interest income		—			—			—			69			69
Interest expense		(53	)		—			(53	)		(70	)		(123	)
Interest expense-financing fees		—			—			—			(44	)		(44	)
Depreciation and amortization		1,139			244			1,383			50			1,433
Segment income (loss) before income taxes		1,675			1,524			3,199			(5,028	)		(1,829	)⁽²⁾
Income tax benefit		(91	)		(56	)		(147	)		—			(147	)
Segment income (loss)		1,766			1,580			3,346			(5,028	)		(1,682	)
Expenditures for segment assets		819			127			946			1			947	⁽³⁾

Segment Reporting for the Quarter Ended September 30, 2021

	Treatment			Services			Medical			Segments Total			Corporate ⁽¹⁾			Consolidated Total
Revenue from external customers	$	8,893		$	6,904			—		$	15,797		$	—		$	15,797
Intercompany revenues		220			5			—			225			—			—
Gross profit (negative gross profit)		2,487			(263	)		—			2,224			—			2,224
Research and development		52			18			162			232			11			243
Interest income		—			—			—			—			2			2
Interest expense		(51	)		(1	)		—			(52	)		(25	)		(77	)
Interest expense-financing fees		—			—			—			—			(11	)		(11	)
Depreciation and amortization		319			85			—			404			5			409
Segment income (loss) before income taxes		1,317			(984	)		(162	)		171			(1,626	)		(1,455	)
Income tax expense (benefit)		1			—			—			1			(2,837	)		(2,836	)⁽⁴⁾
Segment income (loss)		1,316			(984	)		(162	)		170			1,211			1,381
Expenditures for segment assets		482			—			—			482			—			482	⁽⁶⁾

Segment Reporting for the Nine Months Ended September 30, 2021

	Treatment			Services			Medical			Segments Total			Corporate ⁽¹⁾			Consolidated Total
Revenue from external customers	$	24,094		$	30,981			—		$	55,075		$	—		$	55,075
Intercompany revenues		1,199			44			—			1,243			—			—
Gross profit		4,845			701			—			5,546			—			5,546
Research and development		142			50			311			503			35			538
Interest income		—			—			—			—			23			23
Interest expense		(88	)		(9	)		—			(97	)		(112	)		(209	)
Interest expense-financing fees		—			—			—			—			(28	)		(28	)
Depreciation and amortization		939			255			—			1,194			14			1,208
Segment income (loss) before income taxes		1,669			(1,721	)		(311	)		(363	)		987	⁽⁵⁾		624
Income tax (benefit) expense		(13	)		10			—			(3	)		(2,837	)		(2,840	)⁽⁴⁾
Segment income (loss)		1,682			(1,731	)		(311	)		(360	)		3,824			3,464
Expenditures for segment assets		1,109			14			—			1,123			9			1,132	⁽⁶⁾

⁽¹⁾

Amounts reflect the activity for corporate headquarters not included in the segment information.

⁽²⁾

Includes approximately $1,975,000 recorded as other income under the Employee Retention Credit program under the CARES Act, as amended (see “Note 13 – Employee Retention Credit (“ERC”) below for a discussion of this expected refund amount).

⁽³⁾

Net of financed amount of $0 and $114,000 for the three and nine months ended September 30, 2022, respectively.

⁽⁴⁾

Includes tax benefit recorded in amount of approximately $2,351,000 resulting from release of valuation allowance on the Company’s deferred tax assets.

⁽⁵⁾

Includes approximately $5,381,000 of “Gain on extinguishment of debt” recorded in connection with the Company’s Paycheck Protection Program (“PPP”) Loan which was forgiven by the U.S. Small Business Administration effective June 15, 2021.

⁽⁶⁾

Net of financed amount of $271,000 and $348,000 for the three and nine months ended September 30, 2021, respectively.