v3.26.1
Segment Reporting and Major Customers
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting and Major Customers

Note 11 — Segment Reporting and Major Customers

Segment Reporting

ASC 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 products, business segments, and major customers in financial statements. The Company conducts its business in one operating segment, and sells products in one family, which are versions of the MyoPro. While the Company has several sales channels and operates in different geographies, the Chief Executive Officer, who is the Company's chief operating decision-maker, and is responsible for allocating resources and assessing the performance of the Company, manages the Company's business on a consolidated basis, focusing on revenue, gross margin, certain operating expenses, loss from operations, other expenses (income), Income Tax, and Net loss. The Chief Executive Officer reviews the consolidated balance sheet with relation to consolidated Assets. The Chief Executive Officer does not review any additional or more disaggregated level.

 

 

 

Three Months Ended

For The Six Months Ended

 

 

 

June 30,

June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

11,704,565

 

 

$

9,652,234

 

 

$

21,817,853

 

 

$

19,484,048

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

3,262,017

 

 

 

3,600,061

 

 

 

6,473,698

 

 

 

6,822,246

 

Gross profit

 

 

8,442,548

 

 

 

6,052,173

 

 

 

15,344,155

 

 

 

12,661,802

 

Gross margin

 

 

72.1

%

 

 

62.7

%

 

 

70.3

%

 

 

65.0

%

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Payroll and benefits expense

 

 

7,138,891

 

 

 

7,663,736

 

 

 

14,354,651

 

 

 

14,441,271

 

Advertising

 

 

2,050,276

 

 

 

2,229,940

 

 

 

3,893,966

 

 

 

3,839,629

 

All other segment operating expenses

 

 

2,845,951

 

 

 

2,536,971

 

 

 

5,236,258

 

 

 

5,816,202

 

Payroll and benefits expense in cost of revenue

 

 

(1,338,084

)

 

 

(1,788,154

)

 

 

(2,729,182

)

 

 

(3,324,726

)

 

 

 

10,697,034

 

 

 

10,642,493

 

 

 

20,755,693

 

 

 

20,772,376

 

Loss from operations

 

$

(2,254,486

)

 

$

(4,590,320

)

 

$

(5,411,538

)

 

$

(8,110,574

)

Other expense (income)

 

 

535,744

 

 

 

(106,549

)

 

 

1,040,440

 

 

 

(298,540

)

Change in fair value of derivatives liabilities

 

 

1,199,726

 

 

-

 

 

 

360,662

 

 

-

 

Tax Expense

 

 

31,404

 

 

 

148,201

 

 

 

218,119

 

 

 

284,996

 

Net Loss

 

$

(4,021,360

)

 

$

(4,631,972

)

 

$

(7,030,759

)

 

$

(8,097,030

)

Major Customers

For the three and six months ended June 30, 2026 and 2025, there were no customers which accounted for more than 10% of revenues. For the three months ended June 30, 2026 and 2025, the Centers for Medicare and Medicaid Services ("CMS") represented 50% and 56% of revenues, respectively. For the six months ended June 30, 2026 and 2025, CMS represented 51% and 58% of revenues, respectively.

 

At June 30, 2026, CMS accounted for approximately 33% of accounts receivable. At December 31, 2025, CMS. a U.S. commercial insurer and its affiliates accounted, and an O&P customer, accounted for approximately 25%, 16%, and 12%, of accounts receivable, respectively.

 

For the three and six months ended June 30, 2026, approximately 16% and 17% of the Company's revenues, respectively, were derived from patients with Medicare Advantage insurance plans. For the three and six months ended June 30, 2025, approximately 20% and 19% of the Company's revenues, respectively were derived from patients with Medicare Advantage insurance plans.