Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.22.1
Segment Reporting
3 Months Ended
Mar. 31, 2022
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, 2022, the Company operated or managed 100 clinics under this segment. The Franchise Operations segment is composed of the operating activities of the franchise business unit. As of March 31, 2022, the franchise system consisted of 636 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: 2022 2021
Corporate clinics $ 12,606,999  $ 9,466,083 
Franchise operations 9,831,539  8,081,882 
Total revenues $ 22,438,538  $ 17,547,965 
Depreciation and amortization:
Corporate clinics 1,376,196  1,093,833 
Franchise operations 173,487  342 
Corporate administration 79,493  75,691 
Total depreciation and amortization $ 1,629,176  $ 1,169,866 
Segment operating (loss) income:
Corporate clinics $ (438,064) $ 1,349,057 
Franchise operations 4,403,238  3,847,773 
Total segment operating income $ 3,965,174  $ 5,196,830 
Reconciliation of total segment operating income to consolidated earnings before income taxes:
Total segment operating income $ 3,965,174  $ 5,196,830 
Unallocated corporate (4,141,600) (3,225,154)
Consolidated (loss) income from operations (176,426) 1,971,676 
Other expense, net 16,147  21,537 
(Loss) income before income tax benefit $ (192,573) $ 1,950,139 
Segment assets: March 31,
2022
December 31,
2021
Corporate clinics $ 41,328,616  $ 40,722,898 
Franchise operations 12,844,303 12,593,912
Total segment assets 54,172,919 53,316,810
Unallocated cash and cash equivalents and restricted cash 18,845,911 19,912,338
Unallocated property and equipment 807,832 857,176
Other unallocated assets 11,235,787 11,367,885
Total assets $ 85,062,449  $ 85,454,209 
“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.