Quarterly report [Sections 13 or 15(d)]

Divestitures (Tables)

v3.25.2
Divestitures (Tables)
 6 Months Ended
Jun. 30, 2025
Discontinued Operations and Disposal Groups [Abstract]  
Schedule of Discontinued Operations
During the three and six months ended June 30, 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 June 30, 2024
Carrying Value Fair Value Net loss on disposition or impairment related to discontinued operations
Property and equipment, net $ 1,040,615  $ 660,946  $ 379,669 
Operating lease right-of-use asset 476,983  95,870  381,113 
Intangible assets, net 298,510  252,746  45,764 
Total net loss on disposition or impairment related to discontinued operations $ 806,546 
Six Months Ended June 30, 2024
Carrying Value Fair Value Net loss on disposition or impairment related to discontinued operations
Property and equipment, net $ 1,900,692  $ 1,388,984  $ 511,708 
Operating lease right-of-use asset 476,983  95,870  381,113 
Intangible assets, net 298,510  252,746  45,764 
Total net loss on disposition or impairment related to discontinued operations $ 938,585 
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
June 30,		 Six Months Ended
June 30,
2025 2024 2025 2024
Net loss on disposition or impairment related to discontinued operations $ 439,831  $ 527,081  $ 1,422,765  $ 705,337 
The following table shows a reconciliation of the Company’s impairment and disposal losses recorded in Income from discontinued operations before income tax expense for the three and six months ended June 30, 2025 and 2024:
Three Months Ended
June 30,		 Six Months Ended
June 30,
2025 2024 2025 2024
Impairment on long-lived assets held for use
Property and equipment, net $ —  $ 379,669  $ —  $ 511,708 
Operating lease right-of-use asset —  381,113  —  381,113 
Intangible assets, net —  45,764  —  45,764 
Impairment on assets held for sale
Assets held for sale 439,831  527,081  1,422,765  705,337 
Loss on disposal of assets other than by sale
Property and equipment, net 257,922  101,031  267,164  152,564 
Operating lease right-of-use asset 233,695  —  425,778  — 
Loss on sale of assets 821,046  —  770,145  — 
Total net loss on disposition or impairment related to discontinued operations $ 1,752,494  $ 1,434,658  $ 2,885,852  $ 1,796,486 
The key components of Net income from discontinued operations that were included in the Company’s condensed consolidated income statements are as follows:
Three Months Ended June 30, Six Months Ended June 30,
2025 2024 2025 2024
Revenues:
Revenues from company-owned or managed clinics $ 16,642,013  $ 17,650,525  $ 33,548,363  $ 35,187,976 
Total revenues 16,642,013  17,650,525  33,548,363  35,187,976 
Cost of revenues:
IT cost of revenues 5,551  14,282  11,723  25,846 
Total cost of revenues 5,551  14,282  11,723  25,846 
Selling and marketing expenses 1,825,654  1,961,443  3,718,400  3,609,974 
Depreciation and amortization 17,120  1,181,359  43,505  2,255,631 
General and administrative expenses 11,857,995  14,777,444  24,128,217  27,701,829 
Total selling, general and administrative expenses 13,700,769  17,920,246  27,890,122  33,567,434 
Net loss on disposition or impairment from discontinued operations 1,752,494  1,434,658  2,885,852  1,796,486 
Income (loss) from discontinued operations 1,183,199  (1,718,661) 2,760,666  (201,790)
Other expense, net —  561  238  1,189 
Income (loss) before income tax expense 1,183,199  (1,719,222) 2,760,428  (202,979)
Income tax expense from discontinued operations 100,201  167,153  203,613  337,498 
Net income (loss) from discontinued operations $ 1,082,998  $ (1,886,375) $ 2,556,815  $ (540,477)
The following table summarizes the major classes of assets and liabilities of discontinued operations that were included in the Company’s condensed consolidated balance sheets:
June 30,
2025		 December 31,
2024
ASSETS
Accounts receivable $ 674,573  $ 2,484,248 
Prepaid expenses and other current assets 1,375,346  549,605 
Assets held for sale 22,692,768  38,395,986 
Property and equipment, net 156,288  208,074 
Deferred tax assets (attributable to VIEs) 1,087,204  1,087,204 
Deposits and other assets 303,506  425,938 
Total assets, discontinued operations $ 26,289,685  $ 43,151,055 
LIABILITIES
Accounts payable $ 144,560  $ 67,107 
Accrued expenses 2,329,986  5,066,941 
Payroll liabilities ($0.7 million and $0.9 million attributable to VIEs, respectively)
 2,045,251  2,333,335 
Operating lease liability, current portion 286,324  153,517 
Finance lease liability, current portion —  38,015 
Other current liabilities (attributable to VIEs) 1,079,442  1,079,441 
Liabilities to be disposed of ($4.8 million and $5.2 million attributable to VIEs, respectively)
 19,492,223  28,629,103 
Total liabilities, discontinued operations $ 25,377,786  $ 37,367,459 
The key components of cash flows from discontinued operations are as follows:
Six Months Ended June 30,
2025 2024
Depreciation and amortization $ 43,505  $ 2,255,631 
Capital expenditures
Purchase of property and equipment 73,535  245,486 
Significant operating and investing non-cash items
Net loss on disposition or impairment 2,885,852  1,796,486 
The principal components of the held for sale assets and liabilities to be disposed of as of June 30, 2025 and December 31, 2024 were as follows:
June 30, 2025 December 31, 2024
Assets
Contract assets $ 1,220,767  $ — 
Property and equipment, net
 4,938,413  8,457,627 
Operating lease right-of-use asset 14,184,353  19,643,917 
Intangible assets, net 4,518,833  6,906,807 
Goodwill 3,482,718  8,459,238 
Valuation allowance (5,652,316) (5,071,603)
Total assets held for sale $ 22,692,768  $ 38,395,986 
Liabilities
Operating lease liability, current and non-current $ 13,970,185  $ 20,526,714 
Deferred revenue from company-owned or managed clinics 5,522,038  8,102,389 
Total liabilities to be disposed of $ 19,492,223  $ 28,629,103