Quarterly report [Sections 13 or 15(d)]

Divestitures (Tables)

v3.26.1
Divestitures (Tables)
 3 Months Ended
Mar. 31, 2026
Discontinued Operations and Disposal Groups [Abstract]  
Schedule of Discontinued Operations As a result of our 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, we recorded an estimated net loss on disposal, which is included in Income from discontinued operations before income tax expense in the condensed consolidated income statement as follows:
Three Months Ended
March 31,
2026 2025
Net loss on disposition or impairment related to discontinued operations $ 408,232  $ 982,934 
The following table shows a reconciliation of our impairment and disposal losses recorded in Income from discontinued operations before income tax expense for the three months ended March 31, 2026 and 2025:
Three Months Ended
March 31,
2026 2025
Impairment on assets held for sale
Assets held for sale $ 408,232  $ 982,934 
Loss on disposal of assets other than by sale
Property and equipment, net 816  9,241 
Operating lease right-of-use asset 6,484  192,083 
Gain on the sale of assets (37,768) (50,901)
Total net loss on disposition or impairment related to discontinued operations $ 377,764  $ 1,133,357 
The key components of Net income from discontinued operations that were included in our condensed consolidated income statements are as follows:
Three Months Ended March 31,
2026 2025
Revenues:
Revenues from company-owned or managed clinics $ 9,354,191  $ 16,906,350 
Total revenues 9,354,191  16,906,350 
Cost of revenues:
IT cost of revenues 6,181  6,172 
Total cost of revenues 6,181  6,172 
Selling and marketing expenses 1,007,302  1,892,746 
Depreciation and amortization 7,757  26,386 
General and administrative expenses 7,564,501  12,270,222 
Total selling, general and administrative expenses 8,579,560  14,189,354 
Net loss on disposition or impairment from discontinued operations 377,764  1,133,357 
Income from discontinued operations 390,686  1,577,467 
Other expense, net 11,973  238 
Income before income tax expense 378,713  1,577,229 
Income tax expense from discontinued operations 182,369  103,412 
Net income from discontinued operations $ 196,344  $ 1,473,817 
The following table summarizes the major classes of assets and liabilities of discontinued operations that were included in our condensed consolidated balance sheets:
March 31,
2026		 December 31,
2025
ASSETS
Accounts receivable $ 275,679  $ 315,201 
Prepaid expenses and other current assets 170,177  581,504 
Assets held for sale, net of valuation allowance 20,083,666  20,051,965 
Property and equipment, net 15,052  67,779 
Deferred tax assets (attributable to VIEs) 994,138  994,138 
Deposits and other assets 235,870  235,731 
Total assets, discontinued operations $ 21,774,582  $ 22,246,318 
LIABILITIES
Accounts payable $ 32,098  $ 83,503 
Accrued expenses 2,934,669  2,519,433 
Payroll liabilities ($0.4 million and $0.6 million attributable to VIEs, respectively)
 826,461  988,865 
Operating lease liability, current portion 604,826  651,844 
Other current liabilities (attributable to VIEs) 756,483  756,483 
Liabilities to be disposed of ($4.7 million and $4.7 million attributable to VIEs, respectively)
 16,044,023  16,368,318 
Total liabilities, discontinued operations $ 21,198,560  $ 21,368,446 
The key components of cash flows from discontinued operations are as follows:
Three Months Ended March 31,
2026 2025
Significant operating and investing non-cash items:
Depreciation and amortization $ 7,757  $ 26,386 
Net loss on disposition or impairment 377,764  1,133,357 
Capital expenditures:
Purchase of property and equipment —  66,656 
The principal components of the held for sale assets and liabilities to be disposed of as of March 31, 2026 and December 31, 2025 were as follows:
March 31, 2026 December 31, 2025
Assets:
   Property and equipment, net
 $ 4,496,729  $ 4,497,545 
   Operating lease right-of-use asset 14,551,830  14,111,081 
   Intangible assets, net 4,288,265  4,288,265 
   Goodwill 3,482,718  3,482,718 
   Valuation allowance (6,735,876) (6,327,644)
Total assets held for sale, net $ 20,083,666  $ 20,051,965 
Liabilities:
   Operating lease liability, current and non-current $ 10,656,341  $ 11,065,542 
   Deferred revenue from company-owned or managed clinics 5,387,682  5,302,776 
Total liabilities to be disposed of $ 16,044,023  $ 16,368,318