Annual report pursuant to Section 13 and 15(d)

Segment Reporting

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Segment Reporting
 12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
An operating segment is defined as a component of an enterprise for which discrete financial information is available and is reviewed regularly by the Chief Operating Decision Maker (“CODM”) to evaluate performance and make operating decisions. The Company has identified its CODM as the Chief Executive Officer.
The Company has two operating business segments. The Corporate Clinics segment is comprised of the operating activities of the company-owned or managed clinics. As of December 31, 2019, the Company operated or managed 60 clinics under this segment. The Franchise Operations segment is comprised of the operating activities of the franchise business unit. As of December 31, 2019, the franchise system consisted of 453 clinics in operation. Corporate is a non-operating segment that develops and implements strategic initiatives and supports the Company’s two operating business segments by centralizing key administrative functions such as finance and treasury, information technology, insurance and risk management, legal and
human resources. Corporate also provides the necessary administrative functions to support the Company as a publicly-traded company. A portion of the expenses incurred by Corporate are allocated to the operating segments.
The tables below present financial information for the Company’s two operating business segments (in thousands).
Year Ended December 31,
2019 2018
(as adjusted)
Revenues:
Corporate clinics $ 25,808    $ 19,545   
Franchise operations 22,643    17,116   
Total revenues $ 48,451    $ 36,661   
Segment operating income:
Corporate clinics $ 3,365    $ 1,475   
Franchise operations 10,975    8,083   
Total segment operating income $ 14,340    $ 9,558   
Depreciation and amortization:
Corporate clinics $ 1,708    $ 1,105   
Franchise operations —    —   
Corporate administration 191    451   
Total depreciation and amortization $ 1,899    $ 1,556   
Reconciliation of total segment operating income to consolidated earnings before income taxes:
Total segment operating income $ 14,340    $ 9,558   
Unallocated corporate (10,925)   (9,415)  
Consolidated income from operations 3,415    143   
Bargain purchase gain 19    13   
Other (expense), net (62)   (47)  
Income before income tax expense $ 3,372    $ 109   

December 31, 2019 December 31, 2018
Segment assets: (as adjusted)
Corporate clinics $ 25,625    $ 8,828   
Franchise operations 5,770    4,455   
Total segment assets $ 31,395    $ 13,283   
Unallocated cash and cash equivalents and restricted cash $ 8,642    $ 8,855   
Unallocated property and equipment 2,555    487   
Other unallocated assets 1,114    803   
Total assets $ 43,706    $ 23,428   
“Unallocated cash and cash equivalents and restricted cash” relates primarily to corporate cash and cash equivalents and restricted cash (see Note 1), “unallocated property and equipment” relates primarily to corporate fixed assets, and “other unallocated assets” relates primarily to deposits, prepaid and other assets.