v3.22.2.2
REVENUE AND SEGMENT REPORTING
 9 Months Ended
Sep. 30, 2022
Segment Reporting [Abstract]  
REVENUE AND SEGMENT REPORTING REVENUE AND SEGMENT REPORTING
Operating segments are the individual operations that the chief operating decision maker, or CODM, who is the Company's chief executive officer, reviews for purposes of assessing performance and making resource allocation decisions. The CODM currently receives the monthly management report which includes information to assess performance. The retail pharmacy services and pharmacy technology operating segments both engage in different business activities from which they earn revenues and incur expenses.
The Company has the following two reportable segments:
Retail Pharmacy Services Segment
Retail Pharmacy Services segment revenue consists of products sold directly to consumers at the point of sale. MedAvail recognizes retail pharmacy revenue, net of taxes and expected returns, at the time it sells merchandise or dispenses prescription drugs to the customer. The Company estimates revenue based on expected reimbursements from third-party payers (e.g., pharmacy benefit managers, insurance companies and governmental agencies) for dispensing prescription drugs. The estimates are based on all available information including historical experience and are updated to actual reimbursement amounts.
Pharmacy Technology Segment
The Pharmacy Technology Segment consists of sales and subscriptions of MedPlatform systems to customers. These agreements include providing the MedCenter prescription dispensing kiosk, software, and maintenance services. This generally includes either an initial lump sum payment upon installation of the MedCenter with monthly payments for software and services following, or monthly payments for the MedCenter along with monthly payments for software and maintenance services for subscription agreements.
The following tables present revenue and costs of products sold and services by segment (in thousands):
Retail Pharmacy ServicesPharmacy TechnologyTotal
Three Months Ended September 30, 2022
Revenue:
Pharmacy and hardware revenue:
Retail pharmacy revenue$11,162 $— $11,162 
Hardware— — — 
Subscription— 104 104 
Total pharmacy and hardware revenue11,162 104 11,266 
Service revenue:
Software— 94 94 
Maintenance and support— 48 48 
Installation— — — 
Professional services and other— 53 53 
Total service revenue— 195 195 
Total revenue11,162 299 11,461 
Cost of products sold and services10,047 122 10,169 
Segment gross profit$1,115 $177 1,292 
Operating expense:
Pharmacy operations4,392 
General and administrative6,087 
Selling and marketing2,126 
Research and development178 
Total operating expense12,783 
Operating loss$(11,491)
Retail Pharmacy ServicesPharmacy TechnologyTotal
Three Months Ended September 30, 2021
Revenue:
Pharmacy and hardware revenue:
Retail pharmacy revenue$5,445 $— $5,445 
Hardware— 106 106 
Subscription— 108 108 
Total pharmacy and hardware revenue5,445 214 5,659 
Service revenue:
Software— 51 51 
Maintenance and support— 44 44 
Installation— 11 11 
Professional services and other— 27 27 
Total service revenue— 133 133 
Total revenue5,445 347 5,792 
Cost of products sold and services5,366 240 5,606 
Segment gross profit$79 $107 186 
Operating expense:
Pharmacy operations3,750 
General and administrative5,320 
Selling and marketing1,909 
Research and development232 
Total operating expense11,211 
Operating loss$(11,025)
Retail Pharmacy ServicesPharmacy TechnologyTotal
Nine Months Ended September 30, 2022
Revenue:
Pharmacy and hardware revenue:
Retail pharmacy revenue$30,652 $— $30,652 
Hardware— 236 236 
Subscription— 322 322 
Total pharmacy and hardware revenue30,652 558 31,210 
Service revenue:
Software— 228 228 
Maintenance and support— 127 127 
Installation— 77 77 
Professional services and other— 117 117 
Total service revenue— 549 549 
Total revenue30,652 1,107 31,759 
Cost of products sold and services28,460 588 29,048 
Segment gross profit$2,192 $519 2,711 
Operating expense:
Pharmacy operations11,970 
General and administrative18,729 
Selling and marketing6,738 
Research and development952 
Total operating expense38,389 
Operating loss$(35,678)
Retail Pharmacy ServicesPharmacy TechnologyTotal
Nine Months Ended September 30, 2021
Revenue:
Pharmacy and hardware revenue:
Retail pharmacy revenue$13,357 $— $13,357 
Hardware— 470 470 
Subscription— 338 338 
Total pharmacy and hardware revenue13,357 808 14,165 
Service revenue:
Software— 125 125 
Maintenance and support— 115 115 
Installation— 39 39 
Professional services and other— 405 405 
Total service revenue— 684 684 
Total revenue13,357 1,492 14,849 
Cost of products sold and services13,130 1,040 14,170 
Segment gross profit$227 $452 679 
Operating expense:
Pharmacy operations9,428 
General and administrative16,733 
Selling and marketing5,056 
Research and development601 
Total operating expense31,818 
Operating loss$(31,139)
The following table presents assets and liabilities by segment (in thousands):
Retail Pharmacy ServicesPharmacy TechnologyCorporateTotal
September 30, 2022
Assets$15,939 $7,953 $25,959 $49,851 
Liabilities$5,841 $2,689 $10,015 $18,545 
December 31, 2021
Assets$13,641 $5,222 $19,280 $38,143 
Liabilities$5,618 $3,567 $9,885 $19,070 
The following table presents long-lived assets, which include property, plant, and equipment and right-of-use-assets by geographic region, based on the physical location of the assets (in thousands):
September 30,December 31,
20222021
Long-lived assets:
United States$8,286 $7,675 
Canada354 555 
Total long-lived assets$8,640 $8,230