v3.26.1
SEGMENT INFORMATION
12 Months Ended
Dec. 31, 2025
SEGMENT INFORMATION  
SEGMENT INFORMATION

22. SEGMENT INFORMATION

The Company reports the results of our operations as two segments in our consolidated financial statements: (i) medical device and (ii) clinic services.

The determination of our reporting segments was made based on our strategic priorities, which corresponds to the way our CODM reviews and evaluates operating performance to make decisions about resources to be allocated. For our operating segments, the CODM uses segment gross profit and segment loss before unallocated general and administrative as the primary measure of segment performance because it reflects results that are directly attributable to each reportable segment and is the measure most consistent with the Company’s consolidated results prepared in accordance with U.S. GAAP. The CODM does not regularly review any other measures of segment profit or loss for purposes of assessing segment performance or allocating resources.

On a monthly basis, the CODM considers month-to-month and budget-to-actual variances for both measures when allocating resources to segments. The accounting policies of its segment are the same as those described in the summary of significant accounting policies. The CODM is regularly provided information on total consolidated assets and liquidity; however, the CODM is not provided asset information at the reportable segment level. Accordingly, segment assets have not been disclosed.

Significant segement expenses regularly reviewed by CODM for both segments include directly attributable cost of revenues, selling, general and administrative and research and development expenses. Unallocated general and administrative costs include corporate support functions such as executive management, corporate accounting, information technology, legal human resources and Board of Directors fees. Additionally, unallocated general and administrative costs may also include expenses such as litigation and merger and related acquisition-related costs, which are not specific to a segment and thus not allocated to the reportable segments.

Segment information for prior periods has been recast to conform to the current year reportable segment structure. There were no intercompany transactions between the Company’s reportable segments during the years presented. Reportable segment information is presented below (in thousands):

Year ended December 31, 2025

Med Device

Clinic Service

Total

Revenue

$

62,180

$

86,977

$

149,157

Cost of revenues

16,464

60,385

76,849

Segment gross profit

$

45,716

$

26,592

$

72,308

Significant Segment Expense

Selling, General and Administrative

Direct

$

36,120

$

29,528

$

65,648

Research and development

Direct

6,353

231

6,584

Segment profit/(loss)

$

3,243

$

(3,167)

$

76

Unallocated expenses

General and Administrative

$

31,512

Other income, net

(716)

Interest expense

8,415

Net loss

$

(39,135)

Year ended December 31, 2024

Med Device

Clinic Service

Total

Revenue

$

70,445

$

4,445

$

74,890

Cost of revenues

17,516

3,213

20,729

Segment gross profit

$

52,929

$

1,232

$

54,161

Significant Segment Expense

Selling, General and Administrative

Direct

$

44,777

$

854

$

45,631

Research and development

Direct

12,758

13

12,771

Segment profit/(loss)

$

(4,606)

$

365

$

(4,241)

Unallocated expenses

General and Administrative

$

30,322

Other income, net

(2,549)

Interest expense

7,286

Loss on extinguishment of debt

4,427

Net loss

$

(43,727)

Year ended December 31, 2023

Med Device

Clinic Service

Total

Revenue

$

71,348

$

$

71,348

Cost of revenues

19,643

19,643

Segment gross profit

$

51,705

$

$

51,705

Significant Segment Expense

Sales and marketing

Direct

$

47,318

$

$

47,318

Research and development

Direct

9,515

9,515

Segment loss

$

(5,128)

$

$

(5,128)

Unallocated expenses

General and administrative

25,426

Other income, net

$

(5,789)

Interest expense

5,424

Net loss

$

(30,189)