• Filing Date: 2020-11-03
  • Form Type: 10-Q
  • Description: Quarterly report
v3.20.2
Segment Information
9 Months Ended
Sep. 30, 2020
Segment Information [Abstract]  
Segment Information 15. SEGMENT INFORMATION

The Company’s chief operating decision maker is the Chief Executive Officer (CEO). While the CEO is apprised of a variety of financial metrics and information, the business is principally managed and organized based upon geographic environment. Each segment is separately managed and is evaluated primarily upon segment gain or loss from operations. Non-cash items including stock-based compensation expense and depreciation and amortization are categorized as Other within the table below. The Company does not report balance sheet information by segment because the Company’s chief operating decision maker does not review that information.

The following table presents a summary of the Company’s reporting segments for the three months ended September 30, 2020 and 2019:

Three Months Ended

Three Months Ended

September 30, 2020

September 30, 2019

U.S.

International

Other

Consolidated

U.S.

International

Other

Consolidated

(In thousands)

NET REVENUE

$

6,962

$

5,511

$

$

12,473

$

8,692

$

4,158

$

$

12,850

COST OF GOODS SOLD, EXCLUDING DEPRECIATION AND AMORTIZATION

(746)

(791)

(1,537)

(1,001)

(578)

(1,579)

GROSS PROFIT

6,216

4,720

10,936

7,691

3,580

11,271

RESEARCH, DEVELOPMENT AND MEDICAL AFFAIRS EXPENSES

1,560

861

48

2,469

1,573

1,100

88

2,761

GENERAL AND ADMINISTRATIVE EXPENSES

1,952

475

192

2,619

2,032

768

321

3,121

SALES AND MARKETING EXPENSES

3,461

1,226

77

4,764

4,502

1,840

95

6,437

DEPRECIATION AND AMORTIZATION

677

677

668

668

OPERATING EXPENSES

6,973

2,562

994

10,529

8,107

3,708

1,172

12,987

SEGMENT (LOSS) INCOME FROM OPERATIONS

(757)

2,158

(994)

407

(416)

(128)

(1,172)

(1,716)

OTHER INCOME AND EXPENSES, NET

(1,018)

(1,018)

(1,347)

(1,347)

NET LOSS BEFORE TAXES

$

(611)

$

(3,063)

 

The following table presents a summary of the Company’s reporting segments for the nine months ended September 30, 2020 and 2019:

Nine Months Ended

Nine Months Ended

September 30, 2020

September 30, 2019

U.S.

International

Other

Consolidated

U.S.

International

Other

Consolidated

(In thousands)

NET REVENUE

$

17,449

$

19,597

$

$

37,046

$

22,778

$

13,817

$

$

36,595

COST OF GOODS SOLD, EXCLUDING DEPRECIATION AND AMORTIZATION

(1,928)

(3,021)

(4,949)

(2,494)

(1,859)

(4,353)

GROSS PROFIT

15,521

16,576

32,097

20,284

11,958

32,242

RESEARCH, DEVELOPMENT AND MEDICAL AFFAIRS EXPENSES

4,580

2,418

164

7,162

4,629

3,361

332

8,322

GENERAL AND ADMINISTRATIVE EXPENSES

5,867

2,250

658

8,775

6,116

2,876

1,197

10,189

SALES AND MARKETING EXPENSES

10,948

3,618

252

14,818

12,760

5,324

374

18,458

DEPRECIATION AND AMORTIZATION

2,016

2,016

1,974

1,974

OPERATING EXPENSES

21,395

8,286

3,090

32,771

23,505

11,561

3,877

38,943

SEGMENT (LOSS) INCOME FROM OPERATIONS

(5,874)

8,290

(3,090)

(674)

(3,221)

397

(3,877)

(6,701)

OTHER INCOME AND EXPENSES, NET

(3,633)

(3,633)

(3,831)

(3,831)

NET LOSS BEFORE TAXES

$

(4,307)

$

(10,532)

During the three months ended September 30, 2020 and 2019, two customers within the U.S. segment that are large pharmaceutical distributors accounted for 56% and 68%, respectively, of the Company’s consolidated revenues. During the nine months ended September 30, 2020 and 2019, these two customers within the U.S. segment accounted for 47% and 62%, respectively, of the Company’s consolidated revenues. These same two customers within the U.S. segment accounted for approximately 65% and 68% of the Company’s consolidated accounts receivable at September 30, 2020 and at December 31, 2019, respectively.