| Segment Information |
22.Segment Information ASU No. 2023-07 Topic 280, “Segment Reporting” establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organization structure as well as information about services categories, business segments and major customers in financial statement. The Company manages its business in one reportable operating segment, which is primarily engaged in the manufacturing, marketing, and sales of its patented and FDA cleared product, QuantaFlo. In accordance with Topic 280, the Chief Executive Officer and President has been identified as the Company’s chief operating decision maker (“the CODM”), who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. The CODM uses segment operating profit to allocate resources including employees, property and investments. The CODM also uses month-over-month expense variance analysis for cost control and for making decisions about allocating capital and personnel to the segment. The following table breaks out the operations of the Company’s single reportable segment information. | | | | | | | | | | | | | | | | Three months ended June 30, | | Six months ended June 30 | | | | 2025 | | 2024 | | 2025 | | 2024 | | Revenue | | $ | 8,217 | | $ | 14,465 | | $ | 17,052 | | $ | 30,368 | | Less: | | | | | | | | | | | | | | Cost of revenue | | | 668 | | | 1,139 | | | 1,545 | | | 2,267 | | Research and development (1) | | | 1,230 | | | 1,417 | | | 2,536 | | | 2,530 | | Sales | | | 964 | | | 1,528 | | | 1,891 | | | 3,021 | | Sales operations | | | 741 | | | 778 | | | 1,526 | | | 1,563 | | General and administration | | | 5,121 | | | 2,926 | | | 9,995 | | | 5,773 | | Litigation contingency | | | — | | | — | | | 29,750 | | | — | | Depreciation and amortization | | | 109 | | | 170 | | | 211 | | | 346 | | Other segment expenses (2) | | | 1,437 | | | 1,157 | | | 2,754 | | | 2,542 | | Segment operating (loss) profit | | $ | (2,053) | | $ | 5,350 | | $ | (33,156) | | $ | 12,326 | | | | | | | | | | | | | | | | Interest income (expense), net | | | 76 | | | 712 | | | (21) | | | 1,531 | | Interest on 2030 Senior Notes | | | (1,220) | | | | | | (2,065) | | | — | | Impairment of investments | | | — | | | — | | | (1,000) | | | — | | Change in fair value of notes | | | — | | | 128 | | | — | | | 128 | | Change in fair value of digital assets | | | 83,761 | | | (5,055) | | | 41,932 | | | (5,055) | | Other corporate (expense) income (3) | | | (1) | | | 2 | | | 3 | | | 3 | | Income before taxes | | | 80,563 | | | 1,137 | | | 5,693 | | | 8,933 | | Income tax expense | | | 13,630 | | | 1,126 | | | 3,463 | | | 2,849 | | Net income | | $ | 66,933 | | $ | 11 | | $ | 2,230 | | $ | 6,084 | |
| 1. | Research and development expenses include clinical affairs and HITRUST. |
| 2. | Other segment expenses include marketing, customer education and business development. |
| 3. | Other corporate (expense) income represents unallocated (expense) income. |
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