| Business Segment Information |
Business Segment Information The Company’s reportable segments are organized based on service platforms, with the Patient Services segment reflecting higher margin rental revenues that generally include payments made by third-party and direct payers and the Device Solutions segment reflecting lower margin product sales, direct payer rental and services revenues. Resources are allocated and performance is assessed for these segments by the Company’s Chief Executive Officer, whom the Company has determined to be its CODM. The CODM uses gross profit for each segment predominantly in the annual budget and forecasting process and considers budget-to-actual variances on a quarterly basis when making operating and capital resource allocation decisions among each segment.
The financial information summarized below is presented by reportable segment for the three months ended March 31, 2025 and 2024:
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| 2025 |
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| (in thousands) |
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Patient Services |
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Device Solutions |
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Corporate/
Eliminations
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Total |
| Net revenues - external |
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$ |
20,774 |
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$ |
13,942 |
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$ |
— |
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$ |
34,716 |
| Net revenues - internal |
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— |
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1,882 |
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(1,882) |
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— |
| Total net revenues |
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20,774 |
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15,824 |
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(1,882) |
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34,716 |
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| Significant Segment Expenses: |
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| Supplies and material costs |
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5,533 |
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4,548 |
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(1,882) |
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8,199 |
| Employee-related expenses |
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— |
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4,316 |
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— |
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4,316 |
| Depreciation |
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1,834 |
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943 |
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— |
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2,777 |
| Other segment items (a) |
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222 |
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35 |
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— |
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257 |
| Gross profit |
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$ |
13,185 |
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$ |
5,982 |
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$ |
— |
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$ |
19,167 |
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| Selling, general and administrative expenses |
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18,549 |
| Interest expense |
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(336) |
| Other expense |
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(29) |
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| Income before income taxes |
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$ |
253 |
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| Total assets |
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$ |
53,928 |
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$ |
48,354 |
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$ |
2,000 |
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$ |
104,282 |
| Purchases of medical equipment |
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$ |
1,776 |
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$ |
1,508 |
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$ |
— |
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$ |
3,284 |
| Depreciation and amortization of intangible assets |
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$ |
2,082 |
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$ |
1,238 |
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$ |
— |
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$ |
3,320 |
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(a) Other segment items included in Segment gross profit include estimates for medical equipment considered to be missing and other miscellaneous shop expenses. |
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| 2024 |
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| (in thousands) |
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Patient Services |
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Device Solutions |
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Corporate/
Eliminations
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Total |
| Net revenues - external |
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$ |
18,591 |
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$ |
13,404 |
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$ |
— |
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$ |
31,995 |
| Net revenues - internal |
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— |
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1,713 |
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(1,713) |
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— |
| Total net revenues |
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18,591 |
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15,117 |
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(1,713) |
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31,995 |
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| Significant Segment Expenses: |
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| Supplies and material costs |
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4,841 |
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5,644 |
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(1,713) |
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8,772 |
| Employee-related expenses |
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— |
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4,447 |
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— |
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4,447 |
| Depreciation |
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1,573 |
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772 |
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— |
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2,345 |
| Other segment items (a) |
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(97) |
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54 |
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— |
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(43) |
| Gross profit |
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$ |
12,274 |
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$ |
4,200 |
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$ |
— |
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$ |
16,474 |
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| Selling, general and administrative expenses |
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17,319 |
| Interest expense |
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(456) |
| Other income |
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3 |
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| Loss before income taxes |
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$ |
(1,298) |
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| Total assets |
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$ |
57,996 |
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$ |
44,854 |
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$ |
2,000 |
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$ |
104,850 |
| Purchases of medical equipment |
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$ |
350 |
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$ |
1,143 |
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$ |
— |
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$ |
1,493 |
| Depreciation and amortization of intangible assets |
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$ |
1,856 |
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$ |
1,044 |
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$ |
— |
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$ |
2,900 |
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(a) Other segment items included in Segment gross profit include estimates for medical equipment considered to be missing and other miscellaneous shop expenses. |
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