Annual report [Section 13 and 15(d), not S-K Item 405]

Segments

v3.26.1
Segments
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segments

14. 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 this 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 Reportable Segment Profit and Loss, Including Significant Expense Categories

    2025     2024  
    For The Years  
    Ended December 31,  
    2025     2024  
             
Revenue, net:   $ 38,728     $ 46,926  
Less:                
Cost of revenue:                
Fixed     6,810       6,790  
Variable     7,788       10,211  
Sales and marketing     9,924       11,655  
Research and development     642       676  
General and administrative     9,480       9,486  
Interest & other expense, net     310       1,158  
(Benefit) provision for income taxes     (21,210 )     4  
Segment net income     24,984       6,946  
Reconciliation of profit or loss:                
Loss on discontinued operations     (409 )     (244 )
Consolidated net income   $ 24,575     $ 6,702  

 

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 and related expense, interest and taxes, and other non-cash expenses including asset impairment costs, change in fair value of contingent consideration, and 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)

 

    2025     2024  
    Years Ended  
    December 31,  
    2025     2024  
             
Income from continuing operations (GAAP Basis)   $ 24,984     $ 6,946  
Depreciation and amortization     425       300  
Stock-based compensation     35       291  
Severance & related expense     692       -  
Asset impairment - lab supplies     198       -  
Tax (benefit) expense     (21,210 )     4  
Interest accretion expense     -       34  
Note payable interest     168       625  
Other expense/income, net     32       (48 )
Change in fair value of note payable     110       547  
Adjusted EBITDA   $ 5,434     $ 8,699