Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

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Segment Reporting
 6 Months Ended
Jun. 30, 2024
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 June 30, 2024, the Company operated or managed 131 clinics under this segment. The Franchise Operations segment is composed of the operating activities of the franchise business unit. As of June 30, 2024, the franchise system consisted of 829 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 following tables present financial information for the Company’s two operating business segments.
Three Months Ended Six Months Ended
June 30, June 30,
2024 2023 2024 2023
Revenues:
Corporate clinics $ 17,648,736  $ 17,802,838  $ 35,186,240  $ 34,930,795 
Franchise operations 12,611,825  11,504,346  24,796,487  22,677,210 
Total revenues $ 30,260,561  $ 29,307,184  $ 59,982,727  $ 57,608,005 
Depreciation and amortization:
Corporate clinics $ 1,211,613  $ 2,032,666  $ 2,315,845  $ 3,959,758 
Franchise operations 234,064  207,717  453,314  406,690 
Corporate administration 78,136  88,884  158,559  177,874 
Total depreciation and amortization $ 1,523,813  $ 2,329,267  $ 2,927,718  $ 4,544,322 
Segment operating income (loss):
Corporate clinics $ (248,916) $ 21,790  $ 1,237,994  $ (400,263)
Franchise operations 3,938,167  4,232,245  9,276,115  8,774,144 
Total segment operating income $ 3,689,251  $ 4,254,035  $ 10,514,109  $ 8,373,881 
Reconciliation of total segment operating income to consolidated loss before income taxes:
Total segment operating income $ 3,689,251  $ 4,254,035  $ 10,514,109  $ 8,373,881 
Unallocated corporate (7,187,237) (4,628,589) (12,921,819) (9,401,544)
Consolidated loss from operations (3,497,986) (374,554) (2,407,710) (1,027,663)
Other income (expense), net 79,910  (106,520) 115,540  3,714,642 
(Loss) income before income tax expense $ (3,418,076) $ (481,074) $ (2,292,170) $ 2,686,979 
June 30,
2024		 December 31,
2023
Segment assets:
Corporate clinics $ 48,335,810  $ 52,210,617 
Franchise operations 11,980,290 10,521,582
Total segment assets 60,316,100 62,732,199
Unallocated cash and cash equivalents and restricted cash 18,647,721 19,214,292
Unallocated property and equipment 493,616 2,843,491
Other unallocated assets 2,983,139 2,360,877
Total assets $ 82,440,576  $ 87,150,859 
“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.