Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.24.3
Segment Reporting
 9 Months Ended
Sep. 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 September 30, 2024, the Company operated or managed 125 clinics under this segment. The Franchise Operations segment is composed of the operating activities of the franchise business unit. As of September 30, 2024, the franchise system consisted of 838 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 Nine Months Ended
September 30, September 30,
2024 2023 2024 2023
Revenues:
Corporate clinics $ 17,544,658  $ 17,882,303  $ 52,730,898  $ 52,813,098 
Franchise operations 12,653,832  11,591,646  37,450,319  34,268,855 
Total revenues $ 30,198,490  $ 29,473,949  $ 90,181,217  $ 87,081,953 
Depreciation and amortization:
Corporate clinics $ 923,073  $ 2,067,803  $ 3,238,919  $ 6,027,561 
Franchise operations 239,364  190,867  692,678  597,557 
Corporate administration 76,796  90,536  235,355  268,411 
Total depreciation and amortization $ 1,239,233  $ 2,349,206  $ 4,166,952  $ 6,893,529 
Segment operating income (loss):
Corporate clinics $ (2,722,741) $ (931,366) $ (1,484,746) $ (1,331,630)
Franchise operations 5,589,315  5,139,006  14,865,430  13,913,150 
Total segment operating income $ 2,866,574  $ 4,207,640  $ 13,380,684  $ 12,581,520 
Reconciliation of total segment operating income to consolidated loss before income taxes:
Total segment operating income $ 2,866,574  $ 4,207,640  $ 13,380,684  $ 12,581,520 
Unallocated corporate (6,052,461) (5,105,687) (18,974,281) (14,507,231)
Consolidated loss from operations (3,185,887) (898,047) (5,593,597) (1,925,711)
Other income (expense), net 83,333  (6,244) 198,873  3,708,399 
(Loss) income before income tax expense $ (3,102,554) $ (904,291) $ (5,394,724) $ 1,782,688 
September 30,
2024		 December 31,
2023
Segment assets:
Corporate clinics $ 42,306,186  $ 52,210,617 
Franchise operations 11,704,033 10,521,582
Total segment assets 54,010,219 62,732,199
Unallocated cash and cash equivalents and restricted cash 21,995,436 19,214,292
Unallocated property and equipment 570,390 2,843,491
Other unallocated assets 3,022,777 2,360,877
Total assets $ 79,598,822  $ 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.