Annual report pursuant to Section 13 and 15(d)

Segment Reporting

v3.20.4
Segment Reporting
 12 Months Ended
Dec. 31, 2020
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, 2020, the Company operated or managed 64 clinics under this segment. The Franchise Operations segment is comprised of the operating activities of the franchise business unit. As of December 31, 2020, the franchise system consisted of 515 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.
Year Ended December 31,
2020 2019
Revenues:
Corporate clinics $ 31,771,288  $ 25,807,584 
Franchise operations 26,911,688  22,643,316 
Total revenues $ 58,682,976  $ 48,450,900 
Segment operating income:
Corporate clinics $ 4,508,990  $ 3,365,295 
Franchise operations 12,561,278  10,974,769 
Total segment operating income $ 17,070,268  $ 14,340,064 
Depreciation and amortization:
Corporate clinics $ 2,503,181  $ 1,707,575 
Franchise operations —  — 
Corporate administration 231,281  191,682 
Total depreciation and amortization $ 2,734,462  $ 1,899,257 
Reconciliation of total segment operating income to consolidated earnings before income taxes:
Total segment operating income $ 17,070,268  $ 14,340,064 
Unallocated corporate (11,578,138) (10,925,429)
Consolidated income from operations 5,492,130  3,414,635 
Bargain purchase gain —  19,298 
Other (expense), net (79,478) (61,515)
Income before income tax expense $ 5,412,652  $ 3,372,418 
December 31, 2020 December 31, 2019
Segment assets:
Corporate clinics $ 24,928,311  $ 25,389,147 
Franchise operations 9,744,375  7,466,629 
Total segment assets $ 34,672,686  $ 32,855,776 
Unallocated cash and cash equivalents and restricted cash $ 20,819,629  $ 8,641,877 
Unallocated property and equipment 1,063,815  996,385 
Other unallocated assets 9,176,713  1,211,629 
Total assets $ 65,732,843  $ 43,705,667 
“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. Certain unallocated property and equipment balances were reclassified to Corporate clinics and Franchise operations segments as of December 31, 2019 to conform to the current year presentation.