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

Segments

v3.25.1
Segments
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segments

15. 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 Reconciliation of Profit (Loss) from Segments to Consolidated

         
    For The Years  
    Ended December 31,  
    2024     2023  
          (as restated)  
             
Revenue, net:   $ 46,926     $ 40,036  
Less:                
Cost of revenue:                
Fixed     6,790       5,763  
Variable     10,211       9,217  
Sales and marketing     11,655       10,233  
Research and development     676       636  
General and administrative     9,486       9,363  
Other operating expenses     -       868  
Interest & other expense, net     1,158       1,675  
Provision for income taxes     4       17  
Segment net income     6,946       2,264  
Reconciliation of profit or loss:                
Loss on discontinued operations     (244 )     (310 )
Consolidated net income   $ 6,702     $ 1,954  

 

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, 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)

 

         
    Years Ended  
    December 31,  
    2024     2023  
          (as restated)  
             
Income from continuing operations (GAAP Basis)   $ 6,946     $ 2,264  
Depreciation and amortization     300       1,026  
Stock-based compensation     291       630  
Tax expense     4       17  
Interest accretion expense     34       112  
Financing interest and related costs     625       896  
Interest income     (48 )     (53 )
Change in fair value of note payable     547       678  
Change in fair value of contingent consideration     -       7  
Adjusted EBITDA   $ 8,699     $ 5,577