Quarterly report [Sections 13 or 15(d)]

SEGMENT INFORMATION

v3.25.2
SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
SEGMENT INFORMATION

12. SEGMENT INFORMATION

 

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:

 

                         
    For The Three Months     For The Six Months  
    Ended June 30,     Ended June 30,  
    2025     2024     2025     2024  
                         
Revenue, net:   $ 9,232     $ 12,042     $ 20,747     $ 22,219  
Less:                                
Cost of revenue:                                
Fixed     1,694       1,619       3,384       3,197  
Variable     2,262       2,617       4,717       4,905  
Operating and other expenses:                                
Sales and marketing     2,910       2,887       5,723       5,707  
Research and development     173       146       350       283  
General and administrative     2,661       2,141       5,211       4,381  
Interest & other expense, net     65       117       123       415  
Provision for income taxes     -       4       18       8  
Segment net (loss) income     (533 )     2,511       1,221       3,323  
Reconciliation of profit or loss:                                
Loss on discontinued operations     (107 )     (74 )     (214 )     (178 )
Consolidated net (loss) income   $ (640 )   $ 2,437     $ 1,007     $ 3,145  

 

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.

 

                         
    Three Months Ended     Six Months Ended  
    June 30,     June 30,  
    2025     2024     2025     2024  
(Loss) income from continuing operations (GAAP Basis)   $ (533 )   $ 2,511     $ 1,221     $ 3,323  
Depreciation and amortization     101       67       196       119  
Stock-based compensation     9       53       24       132  
Severance & related expense     524       -       692       -  
Asset impairment - lab supplies     198       -       198       -  
Taxes expense     -       4       18       8  
Interest accretion expense     -       12       -       30  
Note payable interest     49       176       127       373  
Other expense/income, net     10       (14 )     14       (29 )
Change in fair value of note payable     7       (57 )     (18 )     41  
Adjusted EBITDA   $ 365     $ 2,752     $ 2,472     $ 3,997