Quarterly report [Sections 13 or 15(d)]

Divestitures (Tables)

v3.25.1
Divestitures (Tables)
 3 Months Ended
Mar. 31, 2025
Discontinued Operations and Disposal Groups [Abstract]  
Schedule of Discontinued Operations
During the three months ended March 31, 2024, property and equipment, net related to asset groups determined to not be recoverable were written down from their carrying values to their respective fair values resulting in the following non-cash impairment losses:
Three Months Ended March 31, 2024
Carrying Value Fair Value Net loss on disposition or impairment related to discontinued operations
Property and equipment, net $ 860,077  $ 728,038  $ 132,039 
Total Net loss on disposition or impairment related to discontinued operations $ 132,039 
As a result of its evaluation of the recoverability of the carrying value of the assets and liabilities held for sale relative to the agreed upon sales prices or the clinics estimated fair values, the Company recorded an estimated net
loss on disposal, which is included in Income from discontinued operations before income tax expense in its condensed consolidated income statement as follows:
Three Months Ended
March 31,
2025 2024
Net loss on disposition or impairment related to discontinued operations $ 1,149,300  $ 178,256 
The following table shows a reconciliation of the Company’s impairment losses and disposal gains and losses recorded in Income from discontinued operations before income tax expense for the three months ended March 31, 2025, and 2024:
Three Months Ended
March 31,
2025 2024
Impairment on long-lived assets held for use
Property and equipment, net $ —  $ 132,039 
Impairment on assets held for sale
Assets held for sale 1,149,300  178,256 
Loss on disposal of assets
Property and equipment, net 9,241  51,533 
Operating lease right-of-use asset 192,083  — 
Loss (gain) on sale of assets (50,901) — 
Total net loss on disposition or impairment related to discontinued operations $ 1,299,723  $ 361,828 
The key components of Net income from discontinued operations that were included in the Company’s consolidated income statements are as follows:
Three Months Ended March 31,
2025 2024
Revenues:
Revenues from company-owned or managed clinics $ 16,906,350  $ 17,537,451 
Total revenues 16,906,350  17,537,451 
Cost of revenues:
IT cost of revenues 6,172  11,564 
Total cost of revenues 6,172  11,564 
Selling and marketing expenses 1,892,746  1,648,531 
Depreciation and amortization 26,386  1,074,272 
General and administrative expenses 12,270,222  12,924,385 
Total selling, general and administrative expenses 14,189,354  15,647,188 
Net loss on disposition or impairment from discontinued operations 1,299,723  361,828 
Income from discontinued operations 1,411,101  1,516,871 
Other expense, net 238  628 
Income before income tax expense 1,410,863  1,516,243 
Income tax expense from discontinued operations 103,412  170,345 
Net income from discontinued operations $ 1,307,451  $ 1,345,898 
The following table summarizes the major classes of assets and liabilities of discontinued operations that were included in the Company’s consolidated balance sheets:
March 31,
2025		 December 31,
2024
ASSETS
Accounts receivable $ 638,408  $ 2,484,248 
Prepaid expenses and other current assets 556,281  549,605 
Assets held for sale 34,267,130  36,071,975 
Property and equipment, net 215,779  208,074 
Deferred tax assets (attributable to VIEs) 1,087,204  1,087,204 
Deposits and other assets 413,591  425,938 
Total assets, discontinued operations $ 37,178,393  $ 40,827,044 
LIABILITIES
Accounts payable $ 314,350  $ 67,107 
Accrued expenses 1,578,151  5,066,941 
Payroll liabilities ($0.5 million and $0.9 million attributable to VIEs, respectively)
 2,620,280  2,333,335 
Operating lease liability, current portion 116,128  153,517 
Finance lease liability, current portion —  38,015 
Other current liabilities (attributable to VIEs) 1,079,441  1,079,441 
Liabilities to be disposed of ($5.2 million and $5.2 million attributable to VIEs, respectively
 27,044,529  28,975,844 
Total liabilities, discontinued operations $ 32,752,879  $ 37,714,200 
The key components of cash flows from discontinued operations are as follows:
Three Months Ended March 31,
2025 2024
Depreciation and amortization 26,386  1,074,272 
Capital expenditures
Purchase of property and equipment 66,656  182,249 
Significant operating and investing non-cash items
Net loss on disposition or impairment 1,299,723  361,828 
The principal components of the held for sale assets and liabilities to be disposed of as of March 31, 2025, and December 31, 2024 were as follows:
March 31, 2025 December 31, 2024
Assets
Property and equipment, net
$ 8,469,656  $ 8,497,499 
Operating lease right-of-use asset 19,353,656  19,954,069 
Intangible assets, net 6,879,518  6,906,807 
Goodwill 8,459,238  8,459,238 
Valuation allowance (8,894,938) (7,745,638)
Total assets held for sale $ 34,267,130  $ 36,071,975 
Liabilities
Operating lease liability, current and non-current $ 18,903,191  $ 20,873,455 
Deferred revenue from company clinics 8,141,338  8,102,389 
Total liabilities to be disposed of $ 27,044,529  $ 28,975,844