Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.21.1
Segment Reporting
 3 Months Ended
Mar. 31, 2021
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 and one non-operating business segment. The Corporate Clinics segment is composed of the operating activities of the company-owned or managed clinics. As of March 31, 2021, the Company operated or managed 65 clinics under this segment. The Franchise Operations segment is composed of the operating activities of the franchise business unit. As of March 31, 2021, the franchise system consisted of 527 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.
Three Months Ended
March 31,
Revenues:
 2021 2020
Corporate clinics
 $ 9,470,860  $ 7,294,295 
Franchise operations
 8,077,105  6,350,191 
Total revenues
 $ 17,547,965  $ 13,644,486 
Depreciation and amortization:
Corporate clinics 1,093,833  577,543 
Franchise operations 342  342 
Corporate administration 75,691  76,364 
Total depreciation and amortization $ 1,169,866  $ 654,249 
Segment operating income:
Corporate clinics
 $ 1,349,057  $ 783,706 
Franchise operations
 3,847,773  2,844,298 
Total segment operating income
 $ 5,196,830  $ 3,628,004 
Reconciliation of total segment operating income to consolidated earnings before income taxes:
Total segment operating income $ 5,196,830  $ 3,628,004 
Unallocated corporate
 (3,225,154) (2,874,654)
Consolidated income from operations 1,971,676  753,350 
Other expense, net 21,537  4,337 
Income before income tax benefit $ 1,950,139  $ 749,013 

Segment assets: March 31,
2021		 December 31,
2020
Corporate clinics $ 27,788,949  $ 24,928,311 
Franchise operations 10,192,465 9,744,375
Total segment assets 37,981,414 34,672,686
Unallocated cash and cash equivalents and restricted cash 18,007,150 20,819,629
Unallocated property and equipment 999,468 1,063,815
Other unallocated assets 9,919,527 9,176,713
Total assets $ 66,907,559  $ 65,732,843 
“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.