Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.23.3
Segment Reporting
3 Months Ended
Mar. 31, 2023
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, 2023, the Company operated or managed 130 clinics under this segment. The Franchise Operations segment is composed of the operating activities of the franchise business unit. As of March 31, 2023, the franchise system consisted of 740 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,
2023 2022
Revenues:
(as restated)
Corporate clinics $ 17,127,957  $ 12,606,999 
Franchise operations 11,172,863  9,629,752 
Total revenues $ 28,300,820  $ 22,236,751 
Depreciation and amortization:
Corporate clinics 1,927,091  1,083,676 
Franchise operations 198,974  173,487 
Corporate administration 88,990  79,493 
Total depreciation and amortization $ 2,215,055  $ 1,336,656 
Segment operating (loss) income:
Corporate clinics $ (422,053) $ (145,544)
Franchise operations 4,541,899  4,248,435 
Total segment operating income $ 4,119,846  $ 4,102,891 
Reconciliation of total segment operating income to consolidated earnings before income taxes:
Total segment operating income $ 4,119,846  $ 4,102,891 
Unallocated corporate (4,772,955) (4,141,600)
Consolidated (loss) from operations (653,109) (38,709)
Other income (expense), net 3,821,162  (16,147)
(Loss) income before income tax benefit $ 3,168,053  $ (54,856)
March 31,
2023
December 31,
2022
Segment assets:
(as restated)
Corporate clinics $ 57,207,324  $ 56,008,234 
Franchise operations 12,855,697 12,360,878
Total segment assets 70,063,021 68,369,112
Unallocated cash and cash equivalents and restricted cash 15,504,604 10,550,417
Unallocated property and equipment 566,513 915,216
Other unallocated assets 13,488,907 13,655,632
Total assets $ 99,623,045  $ 93,490,377 
“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.