Quarterly report [Sections 13 or 15(d)]

SEGMENT INFORMATION

v3.25.3
SEGMENT INFORMATION
 9 Months Ended
Sep. 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 Nine Months  
    Ended September 30,     Ended September 30,  
    2025     2024     2025     2024  
                         
Revenue, net:   $ 8,756     $ 12,295     $ 29,504     $ 34,515  
Less:                                
Cost of revenue:                                
Fixed     1,736       1,801       5,120       4,999  
Variable     1,581       2,592       6,298       7,497  
Operating and other expenses:                                
Sales and marketing     2,087       2,864       7,811       8,571  
Research and development     150       199       500       483  
General and administrative     2,057       2,538       7,268       6,918  
Interest & other expense, net     145       539       268       954  
(Benefit) provision for income taxes     (11 )     4       7       12  
Segment net income     1,011       1,758       2,232       5,081  
Reconciliation of profit or loss:                                
Loss on discontinued operations     (100 )     (82 )     (314 )     (260 )
Consolidated net income   $ 911     $ 1,676     $ 1,918     $ 4,821  

 

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     Nine Months Ended  
    September 30,     September 30,  
    2025     2024     2025     2024  
Income from continuing operations (GAAP Basis)   $ 1,011     $ 1,758     $ 2,232     $ 5,081  
Depreciation and amortization     111       85       307       205  
Stock-based compensation     7       86       31       218  
Severance & related expense     -       -       692       -  
Asset impairment - lab supplies     -       -       198       -  
Taxes (benefit) expense     (11 )     4       7       12  
Interest accretion expense     -       4       -       34  
Note payable interest     30       141       156       514  
Other expense/income, net     10       (10 )     25       (40 )
Change in fair value of note payable     105       404       87       445  
Adjusted EBITDA   $ 1,263     $ 2,472     $ 3,735     $ 6,469