Quarterly report [Sections 13 or 15(d)]

SEGMENTS

v3.25.1
SEGMENTS
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
SEGMENTS

12. SEGMENTS

 

The Company operates and manages its business as a single reporting segment. The business provides esoteric molecular diagnostic testing, and pathology services to aid physicians in their evaluation of cancer risk in patients with indeterminate biopsies and a perceived high risk of cancer from clinical features. We develop and commercialize genomic tests and related first-line assays that can personalize medicine to help improve patient diagnosis and management. The Company’s chief operating decision maker (“CODM”) is the chief executive officer.

 

The CODM assesses performance for the segment and decides how to allocate resources based on consolidated net income that is also reported on the consolidated statements of operations. The monitoring of budgeted versus actual results is used in assessing performance of the segment and in establishing resource allocation across the organization.

 

The measure of segment assets is reported on the consolidated balance sheet as total consolidated assets. All the Company’s long-lived assets are located in the United States. The accounting policies of the segment are the same as those described in Note 1, Nature of Business and Significant Accounting Policies included in our Annual Report on Form 10-K.

 

 

The following table presents reportable segment profit and loss, including significant expense categories, attributable to the Company’s reportable segment for the periods presented:

 

SCHEDULE OF RECONCILIATION OF PROFIT (LOSS) FROM SEGMENTS TO CONSOLIDATED

             
    For The Three Months  
    Ended March 31,  
    2025     2024  
             
Revenue, net:   $ 11,515     $ 10,178  
Less:                
Cost of revenue:                
Fixed     1,690       1,580  
Variable     2,455       2,287  
Operating and other expenses:                
Sales and marketing     2,814       2,821  
Research and development     177       137  
General and administrative     2,550       2,239  
Interest & other expense, net     57       298  
Provision for income taxes     18       4  
Segment net income     1,754       812  
Reconciliation of profit or loss:                
Loss on discontinued operations     (107 )     (104 )
Consolidated net income   $ 1,647     $ 708  

 

Adjusted EBITDA, a non-GAAP financial measure, is a metric used by the CODM to measure cash flow of the ongoing business. Adjusted EBITDA is defined as income or loss from continuing operations, plus depreciation and amortization, non-cash stock-based compensation, severance expense, interest and taxes, and other non-cash expenses including change in fair value of notes payable. The table below includes a reconciliation of this non-GAAP financial measure to the most directly comparable GAAP financial measure.

 

Reconciliation of Adjusted EBITDA (Unaudited)

($ in thousands)

 

             
    Three Months Ended  
    March 31,  
    2025     2024  
Income from continuing operations (GAAP Basis)   $ 1,754     $ 812  
Depreciation and amortization     95       52  
Stock-based compensation     15       79  
Severance expense     168       -  
Taxes expense     18       4  
Interest accretion expense     -     19  
Note payable interest     78       197  
Interest income     (7 )     (16 )
Change in fair value of note payable     (25 )     98  
Adjusted EBITDA   $ 2,096     $ 1,245