Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.23.3
Segment Reporting
 9 Months Ended
Sep. 30, 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 September 30, 2023, the Company operated or managed 136 clinics under this segment. The Franchise Operations segment is composed of the operating activities of
the franchise business unit. As of September 30, 2023, the franchise system consisted of 778 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 Nine Months Ended
September 30, September 30,
2023 2022 2023 2022
Revenues: (as restated) (as restated)
Corporate clinics $ 17,882,303  $ 15,836,327  $ 52,813,098  $ 42,936,298 
Franchise operations 11,591,646  10,613,492  34,268,855  30,637,635 
Total revenues $ 29,473,949  $ 26,449,819  $ 87,081,953  $ 73,573,933 
Depreciation and amortization:
Corporate clinics $ 2,067,803  $ 1,504,914  $ 6,027,561  $ 3,780,283 
Franchise operations 190,867  189,426  597,557  549,161 
Corporate administration 90,536  85,584  268,411  249,006 
Total depreciation and amortization $ 2,349,206  $ 1,779,924  $ 6,893,529  $ 4,578,450 
Segment operating income (loss):
Corporate clinics $ (931,366) $ (60,022) $ (1,331,630) $ 345,657 
Franchise operations 5,139,006  5,195,558  13,913,150  11,606,763 
Total segment operating income $ 4,207,640  $ 5,135,536  $ 12,581,520  $ 11,952,420 
Reconciliation of total segment operating income to consolidated earnings before income taxes:
Total segment operating income $ 4,207,640  $ 5,135,536  $ 12,581,520  $ 11,952,420 
Unallocated corporate (5,105,687) (4,403,220) (14,507,231) (12,589,279)
Consolidated (loss) income from operations (898,047) 732,316  (1,925,711) (636,859)
Other income (expense), net (6,244) (25,235) 3,708,399  (60,668)
(Loss) income before income tax benefit $ (904,291) $ 707,081  $ 1,782,688  $ (697,527)
Segment assets: September 30,
2023		 December 31,
2022
(as restated)
Corporate clinics $ 54,861,935  $ 56,008,234 
Franchise operations 12,299,470 12,360,878
Total segment assets 67,161,405 68,369,112
Unallocated cash and cash equivalents 17,142,353 10,550,417
Unallocated property and equipment 708,471 915,216
Other unallocated assets 13,560,397 13,655,632
Total assets $ 98,572,626  $ 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, Nature of Operations and Summary of Significant Accounting Policies), “unallocated property and equipment” relates primarily to corporate fixed assets and “other unallocated assets” relates primarily to deposits, prepaid and other assets.