| DIVISION INFORMATION (SEGMENT REPORTING) |
NOTE 17. DIVISION INFORMATION (SEGMENT REPORTING) Historically, the Company’s activities were organized into three divisions, each of which was a reportable segment: High Intensity Focused Ultrasound (“HIFU”), Lithotripsy (“ESWL”) and Distribution services (“Distribution”). As described in Note 18, on May 28, 2026 the Board of Directors approved a plan to exit the ESWL and Distribution segments to focus the Company exclusively on its HIFU business, and those segments are reported as discontinued operations for all periods presented. Following that classification, HIFU is the Company’s sole continuing reportable segment. The chief operating decision maker, the Company’s Chief Executive Officer, reviews segment operating income or loss for purposes of allocating resources and assessing performance. Segment information for all periods presented below has been recast to reflect the ESWL and Distribution segments as discontinued operations. | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | | 2026 | | 2025 | | 2026 | | 2025 | Operating loss | | (8,012) | | (6,547) | | (15,378) | | (12,856) | Financial (expense) income, net | | (6,307) | | (62) | | (8,021) | | (47) | Foreign currency exchange (losses) gains, net | | (90) | | 310 | | 52 | | (696) | Income tax (expense) benefit | | (78) | | (107) | | (223) | | (251) | Consolidated net loss | | (14,487) | | (6,406) | | (23,570) | | (13,850) |
A summary of the Company’s operations by segment is presented below for the three and six months ended June 30, 2026, and 2025: | | | | | | | | | | | | | | Three Months Ended | | HIFU | | Reconciling | | Total | June 30, 2026 | | Division | | Items | | continuing | Sales of goods | | 9,527 | | — | | 9,527 | Sales of RPPs & leases | | 2,758 | | — | | 2,758 | Sales of spare parts and services | | 918 | | — | | 918 | Total sales | | 13,203 | | — | | 13,203 | External other revenues | | — | | — | | — | Total revenues | | 13,203 | | — | | 13,203 | Total cost of sales | | (5,865) | | — | | (5,865) | Gross profit | | 7,338 | | — | | 7,338 | R&D expenses | | (2,317) | | — | | (2,317) | Selling and marketing expenses | | (7,535) | | — | | (7,535) | General and administrative expenses | | (3,334) | | (2,185) | | (5,519) | Total expenses | | (13,186) | | (2,185) | | (15,371) | Operating income (loss) from operations | | (5,848) | | (2,185) | | (8,033) | Total Assets | | 47,105 | | 10,631 | | 57,736 | Net cash generated by (used in) investing activities | | (1,253) | | — | | (1,253) | Non-current assets | | 15,533 | | — | | 15,533 | Goodwill | | 735 | | — | | 735 |
| | | | | | | | | | | | | | Three Months Ended | | HIFU | | Reconciling | | Total | June 30, 2025 | | Division | | Items | | continuing | Sales of goods | | 6,385 | | — | | 6,385 | Sales of RPPs & leases | | 2,155 | | — | | 2,155 | Sales of spare parts and services | | 969 | | — | | 969 | Total sales | | 9,509 | | — | | 9,509 | External other revenues | | — | | — | | — | Total revenues | | 9,509 | | — | | 9,509 | Total cost of sales | | (4,646) | | — | | (4,646) | Gross profit | | 4,863 | | — | | 4,863 | R&D expenses | | (2,291) | | — | | (2,291) | Selling and marketing expenses | | (5,295) | | — | | (5,295) | General and administrative expenses | | (2,741) | | (1,158) | | (3,899) | Total expenses | | (10,327) | | (1,158) | | (11,485) | Operating income (loss) from operations | | (5,465) | | (1,158) | | (6,623) | Total Assets | | 48,266 | | 13,070 | | 61,336 | Net cash generated by (used in) investing activities | | (1,543) | | — | | (1,543) | Non-current assets | | 15,727 | | — | | 15,727 | Goodwill | | 756 | | — | | 756 |
| | | | | | | | | | | | | | Six months ended | | HIFU | | Reconciling | | Total | June 30, 2026 | | Division | | Items | | continuing | Sales of goods | | 17,782 | | — | | 17,782 | Sales of RPPs & leases | | 5,250 | | — | | 5,250 | Sales of spare parts and services | | 1,764 | | — | | 1,764 | Total sales | | 24,796 | | — | | 24,796 | External other revenues | | — | | — | | — | Total revenues | | 24,796 | | — | | 24,796 | Total cost of sales | | (11,496) | | — | | (11,496) | Gross profit | | 13,300 | | — | | 13,300 | R&D expenses | | (4,784) | | — | | (4,784) | Selling and marketing expenses | | (13,833) | | — | | (13,833) | General and administrative expenses | | (6,475) | | (4,265) | | (10,740) | Total expenses | | (25,092) | | (4,265) | | (29,357) | Operating income (loss) from operations | | (11,792) | | (4,265) | | (16,057) | Total Assets | | 47,105 | | 10,631 | | 57,736 | Net cash generated by (used in) investing activities | | (1,680) | | — | | (1,680) | Non-current assets | | 15,533 | | — | | 15,533 | Goodwill | | 735 | | — | | 735 |
Six months ended | | HIFU | | Reconciling | | Total | June 30, 2025 | | Division | | Items | | continuing | Sales of goods | | 10,185 | | — | | 10,185 | Sales of RPPs & leases | | 4,100 | | — | | 4,100 | Sales of spare parts and services | | 1,724 | | — | | 1,724 | Total sales | | 16,009 | | — | | 16,009 | External other revenues | | — | | — | | — | Total revenues | | 16,009 | | — | | 16,009 | Total COS | | (7,989) | | — | | (7,989) | Gross profit | | 8,020 | | — | | 8,020 | R&D expenses | | (4,648) | | — | | (4,648) | Selling and marketing expenses | | (9,693) | | — | | (9,693) | G&A expenses | | (4,784) | | (2,262) | | (7,046) | Total expenses | | (19,126) | | (2,262) | | (21,388) | Operating income (loss) from operations | | (11,106) | | (2,262) | | (13,368) | Total Assets | | 48,266 | | 13,070 | | 61,336 | Net cash generated by (used in) investing activities | | (2,742) | | — | | (2,742) | Non-current assets | | 15,727 | | — | | 15,727 | Goodwill | | 756 | | — | | 756 |
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