Quarterly report [Sections 13 or 15(d)]

Divestitures (Tables)

v3.26.1
Divestitures (Tables)
 6 Months Ended
Jun. 30, 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 statements of operations as follows:
Three Months Ended
June 30,		 Six Months Ended
June 30,
2026 2025 2026 2025
Net loss on disposition or impairment related to discontinued operations $ 1,408,035  $ 439,831  $ 1,816,267  $ 1,422,765 
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 and six months ended June 30, 2026 and 2025:
Three Months Ended
June 30,		 Six Months Ended
June 30,
2026 2025 2026 2025
Impairment on assets held for sale
Assets held for sale $ 1,408,035  $ 439,831  $ 1,816,267  $ 1,422,765 
Loss (gain) on disposal of assets other than by sale
Property and equipment, net 1,734  257,922  2,550  267,164 
Operating lease right-of-use asset (281,122) 233,695  (274,638) 425,778 
(Gain) loss on the sale of assets (312,181) 821,046  (349,949) 770,145 
Total net loss on disposition or impairment related to discontinued operations $ 816,466  $ 1,752,494  $ 1,194,230  $ 2,885,852 
The key components of Net income from discontinued operations that were included in our condensed consolidated statements of operations are as follows:
Three Months Ended June 30, Six Months Ended June 30,
2026 2025 2026 2025
Revenues:
Revenues from company-owned or managed clinics $ 7,591,917  $ 16,642,013  $ 16,946,108  $ 33,548,363 
Total revenues 7,591,917  16,642,013  16,946,108  33,548,363 
Cost of revenues:
IT cost of revenues 4,906  5,551  11,087  11,723 
Total cost of revenues 4,906  5,551  11,087  11,723 
Selling and marketing expenses 733,897  1,825,654  1,741,199  3,718,400 
Depreciation and amortization 1,690  17,120  9,447  43,505 
General and administrative expenses 5,133,125  11,857,995  12,697,626  24,128,217 
Total selling, general and administrative expenses 5,868,712  13,700,769  14,448,272  27,890,122 
Net loss on disposition or impairment from discontinued operations 816,466  1,752,494  1,194,230  2,885,852 
Income from discontinued operations 901,833  1,183,199  1,292,519  2,760,666 
Other expense, net 44  —  12,017  238 
Income before income tax expense 901,789  1,183,199  1,280,502  2,760,428 
Income tax (benefit) expense from discontinued operations (2,559) 100,201  179,810  203,613 
Net income from discontinued operations $ 904,348  $ 1,082,998  $ 1,100,692  $ 2,556,815 
The following table summarizes the major classes of assets and liabilities of discontinued operations that were included in our condensed consolidated balance sheets:
June 30,
2026		 December 31,
2025
ASSETS
Restricted cash $ 824,163  $ — 
Accounts receivable 181,144  315,201 
Prepaid expenses and other current assets 253,803  581,504 
Assets held for sale, net of valuation allowance 12,280,539  20,051,965 
Property and equipment, net —  67,779 
Deferred tax assets (attributable to VIEs) 994,138  994,138 
Deposits and other assets 227,194  235,731 
Total assets, discontinued operations $ 14,760,981  $ 22,246,318 
LIABILITIES
Accounts payable $ 26,981  $ 83,503 
Accrued expenses 2,870,060  2,519,433 
Payroll liabilities ($0.1 million and $0.6 million attributable to VIEs, respectively)
 345,312  988,865 
Operating lease liability, current portion 5,424  651,844 
Other current liabilities ($0.8 million attributable to VIEs)
 1,580,646  756,483 
Liabilities to be disposed of ($2.3 million and $4.7 million attributable to VIEs, respectively)
 9,351,816  16,368,318 
Total liabilities, discontinued operations $ 14,180,239  $ 21,368,446 
The key components of cash flows from discontinued operations are as follows:
Six Months Ended June 30,
2026 2025
Significant operating and investing non-cash items:
Depreciation and amortization $ 9,447  $ 43,505 
Net loss on disposition or impairment
 1,194,230  2,885,852 
Capital expenditures:
Purchase of property and equipment 15,753  73,535 
The principal components of the held for sale assets and liabilities to be disposed of as of June 30, 2026 and December 31, 2025 were as follows:
June 30, 2026 December 31, 2025
ASSETS
Property and equipment, net
 $ 3,139,305  $ 4,497,545 
Operating lease right-of-use asset 9,313,107  14,111,081 
Intangible assets, net 4,195,177  4,288,265 
Goodwill 2,927,597  3,482,718 
Valuation allowance (7,294,647) (6,327,644)
Total assets held for sale, net $ 12,280,539  $ 20,051,965 
LIABILITIES
Operating lease liability, current and non-current $ 6,422,252  $ 11,065,542 
Deferred revenue from company-owned or managed clinics 2,929,564  5,302,776 
Total liabilities to be disposed of $ 9,351,816  $ 16,368,318