Quarterly report pursuant to Section 13 or 15(d)

Operating Segment (Tables)

Operating Segment (Tables)

6 Months Ended

Jun. 30, 2018

Schedule of Segment Reporting Information

The table below presents certain financial information of our operating segments for the three and six months ended June 30, 2018 and 2017 (in thousands).

Segment Reporting for the Quarter Ended June 30, 2018

	Treatment			Services		Medical			Segments Total			Corporate ⁽¹⁾			Consolidated Total
Revenue from external customers	$	9,146		$	4,014		—		$	13,160		$	—		$	13,160
Intercompany revenues		77			26		—			103			—			—
Gross profit		1,523			520		—			2,043			—			2,043
Research and development		115			—		71			186			33			219
Interest income		—			—		—			—			81			81
Interest expense		(8	)		—		—			(8	)		(54	)		(62	)
Interest expense-financing fees		—			—		—			—			(9	)		(9	)
Depreciation and amortization		227			123		—			350			9			359
Segment income (loss) before income taxes		2,028	⁽²⁾		116		(71	)		2,073			(1,266	)		807
Income tax expense		14			—		—			14			5			19
Segment income (loss)		2,014			116		(71	)		2,059			(1,271	)		788
Expenditures for segment assets		271			35		—			306			—			306

Segment Reporting for the Quarter Ended June 30, 2017

	Treatment			Services			Medical			Segments Total			Corporate ⁽¹⁾			Consolidated Total
Revenue from external customers	$	9,630		$	3,085			—		$	12,715		$	—		$	12,715
Intercompany revenues		97			7			—			104			—			—
Gross profit		2,174			180			—			2,354			—			2,354
Research and development		62			—			550			612			7			619
Interest income		—			—			—			—			36			36
Interest expense		(18	)		—			—			(18	)		(72	)		(90	)
Interest expense-financing fees		—			—			—			—			(9	)		(9	)
Depreciation and amortization		988			135			—			1,123			10			1,133
Segment income (loss) before income taxes		1,238			(553	)		(550	)		135			(1,295	)		(1,160	)
Income tax expense		65			—			—			65			1			66
Segment income (loss)		1,173			(553	)		(550	)		70			(1,296	)		(1,226	)
Expenditures for segment assets		91			3			—			94			—			94

Segment Reporting for the Six Months Ended June 30, 2018

	Treatment			Services			Medical			Segments Total			Corporate ⁽¹⁾			Consolidated Total
Revenue from external customers	$	18,105		$	7,712			—		$	25,817		$	—		$	25,817
Intercompany revenues		289			39			—			328			—			—
Gross profit		4,303			1,060			—			5,363			—			5,363
Research and development		228			—			172			400			51			451
Interest income		—			—			—			—			130			130
Interest expense		(8	)		(1	)		—			(9	)		(106	)		(115	)
Interest expense-financing fees		—			—			—			—			(18	)		(18	)
Depreciation and amortization		467			246			—			713			18			731
Segment income (loss) before income taxes		3,772	⁽²⁾		31			(172	)		3,631			(2,521	)		1,110
Income tax expense		65			—			—			65			5			70
Segment income (loss)		3,707			31			(172	)		3,566			(2,526	)		1,040
Expenditures for segment assets		491			60			—			551			3			554

Segment Reporting for the Six Months Ended June 30, 2017

	Treatment			Services			Medical			Segments Total			Corporate ⁽¹⁾			Consolidated Total
Revenue from external customers	$	19,665		$	5,757			—		$	25,422		$	—		$	25,422
Intercompany revenues		113			10			—			123			—			—
Gross profit		4,861			212			—			5,073			—			5,073
Research and development		243			—			750			993			15			1,008
Interest income		—			—			—			—			71			71
Interest expense		(26	)		(1	)		—			(27	)		(162	)		(189	)
Interest expense-financing fees		—			—			—			—			(18	)		(18	)
Depreciation and amortization		1,997			271			—			2,268			20			2,288
Segment income (loss) before income taxes		2,840			(1,260	)		(750	)		830			(2,584	)		(1,754	)
Income tax expense		145			—			—			145			2			147
Segment income (loss)		2,695			(1,260	)		(750	)		685			(2,586	)		(1,901	)
Expenditures for segment assets		106			10			—			116			—			116

⁽¹⁾Amounts reflect the activity for corporate headquarters not included in the segment information.

⁽²⁾Amounts included a net gain of $1,596,000 recorded resulting from the exchange offer of the Series B Preferred Stock of our M&EC subsidiary (see “Note 13 – M&EC Series B Preferred Stock” below).