Quarterly report pursuant to Section 13 or 15(d)

Operating Segments (Tables)

Operating Segments (Tables)

9 Months Ended

Sep. 30, 2019

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, 2019 and 2018 (in thousands).

Segment Reporting for the Quarter Ended September 30, 2019

	Treatment			Services			Medical			Segments Total			Corporate ⁽¹⁾			Consolidated Total
Revenue from external customers	$	10,081		$	12,454			—		$	22,535		$	—		$	22,535
Intercompany revenues		75			38			—			113			—			—
Gross profit		3,338			1,819			—			5,157			—			5,157
Research and development		85			—			74			159			6			165
Interest income		—			—			—			—			77			77
Interest expense		(19	)		(5	)		—			(24	)		(75	)		(99	)
Interest expense-financing fees		—			—			—			—			(69	)		(69	)
Depreciation and amortization		243			79			—			322			6			328
Segment income (loss) before income taxes		2,244			1,193			(74	)		3,363			(1,413	)		1,950
Income tax expense		55			—			—			55			—			55
Segment income (loss)		2,189			1,193			(74	)		3,308			(1,413	)		1,895
Expenditures for segment assets		470			31			—			501			—			501

Segment Reporting for the Quarter Ended September 30, 2018

	Treatment			Services			Medical			Segments Total			Corporate ⁽¹⁾			Consolidated Total
Revenue from external customers	$	9,103		$	2,881			—		$	11,984		$	—		$	11,984
Intercompany revenues		174			16			—			190			—			—
Gross profit		1,564			261			—			1,825			—			1,825
Research and development		126			—			88			214			15			229
Interest income		—			—			—			—			82			82
Interest expense		(8	)		(1	)		—			(9	)		(53	)		(62	)
Interest expense-financing fees		—			—			—			—			(10	)		(10	)
Depreciation and amortization		234			122			—			356			8			364
Segment income (loss) before income taxes		506			(224	)		(88	)		194			(1,219	)		(1,025	)
Income tax (benefit) expense		(1,342	)⁽³⁾		—			—			(1,342	)		—			(1,342	)
Segment income (loss)		1,848			(224	)		(88	)		1,536			(1,219	)		317
Expenditures for segment assets		525			22			—			547			1			548

Segment Reporting for the Nine Months Ended September 30, 2019

	Treatment			Services			Medical			Segments Total			Corporate ⁽¹⁾			Consolidated Total
Revenue from external customers	$	30,079		$	21,299			—		$	51,378		$	—		$	51,378
Intercompany revenues		83			101			—			184			—			—
Gross profit		8,921			2,008			—			10,929			—			10,929
Research and development		367			—			228			595			20			615
Interest income		—			—			—			—			265			265
Interest expense		(66	)		(18	)		—			(84	)		(209	)		(293	)
Interest expense-financing fees		—			—			—			—			(139	)		(139	)
Depreciation and amortization		713			236			—			949			19			968
Segment income (loss) before income taxes		5,731			318			(228	)		5,821			(4,003	)		1,818
Income tax expense		99			—			—			99			—			99
Segment income (loss)		5,632			318			(228	)		5,722			(4,003	)		1,719
Expenditures for segment assets		764			49			—			813			—			813

Segment Reporting for the Nine Months Ended September 30, 2018

	Treatment			Services			Medical			Segments Total			Corporate ⁽¹⁾			Consolidated Total
Revenue from external customers	$	27,207		$	10,594			—		$	37,801		$	—		$	37,801
Intercompany revenues		463			55			—			518			—			—
Gross profit		5,867			1,322			—			7,189			—			7,189
Research and development		355			—			259			614			66			680
Interest income		—			—			—			—			212			212
Interest expense		(16	)		(2	)		—			(18	)		(159	)		(177	)
Interest expense-financing fees		—			—			—			—			(27	)		(27	)
Depreciation and amortization		702			367			—			1,069			26			1,095
Segment income (loss) before income taxes		4,279	⁽²⁾		(194	)		(259	)		3,826			(3,740	)		86
Income tax (benefit) expense		(1,277	)⁽³⁾		—			—			(1,277	)		5			(1,272	)
Segment income (loss)		5,556			(194	)		(259	)		5,103			(3,745	)		1,358
Expenditures for segment assets		1,016			82			—			1,098			4			1,102

⁽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 which was consummated on May 30, 2018.

⁽³⁾Amounts included a tax benefit recorded in the amount of approximately $1,380,000 during the third quarter. (see “Note 13 – Income Taxes” below).