Quarterly report [Sections 13 or 15(d)]

Divestitures (Tables)

v3.26.3
Divestitures (Tables)
 9 Months Ended
Sep. 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 (Loss) income from discontinued operations before income tax expense in the condensed consolidated statements of operations as follows:
Three Months Ended
September 30,		 Nine Months Ended
September 30,
2026 2025 2026 2025
Net loss on impairment on assets held for sale related to discontinued operations $ 1,077,523  $ 461,347  $ 2,893,790  $ 1,884,111 
The following table shows a reconciliation of our impairment and disposal losses recorded in (Loss) income from discontinued operations before income tax expense for the three and nine months ended September 30, 2026 and 2025:
Three Months Ended
September 30,		 Nine Months Ended
September 30,
2026 2025 2026 2025
Impairment on assets held for sale
Assets held for sale $ 1,077,523  $ 461,347  $ 2,893,790  $ 1,884,111 
Loss on disposal of assets other than by sale
Property and equipment, net —  125,102  2,550  392,266 
Operating lease right-of-use asset 376,852  251,568  102,214  677,346 
Loss on the sale of assets 630,221  22,581  280,272  792,726 
Total net loss on disposition or impairment related to discontinued operations $ 2,084,596  $ 860,598  $ 3,278,826  $ 3,746,449 
The key components of Net (loss) income from discontinued operations that were included in our condensed consolidated statements of operations are as follows:
Three Months Ended
September 30,		 Nine Months Ended
September 30,
2026 2025 2026 2025
Revenues:
Revenues from company-owned or managed clinics $ 4,186,181  $ 10,520,596  $ 21,132,289  $ 44,068,960 
Total revenues 4,186,181  10,520,596  21,132,289  44,068,960 
Cost of revenues:
IT cost of revenues 2,770  4,181  13,857  15,906 
Total cost of revenues 2,770  4,181  13,857  15,906 
Selling and marketing expenses 302,682  1,012,959  2,043,881  4,731,358 
Depreciation and amortization 134  16,310  9,581  59,815 
General and administrative expenses 3,348,346  7,942,168  16,045,972  32,070,385 
Total selling, general and administrative expenses 3,651,162  8,971,437  18,099,434  36,861,558 
Net loss on disposition or impairment from discontinued operations 2,084,596  860,598  3,278,826  3,746,449 
(Loss) income from discontinued operations (1,552,347) 684,380  (259,828) 3,445,047 
Other expense, net 41,530  20,111  53,547  20,350 
(Loss) income before income tax expense (1,593,877) 664,269  (313,375) 3,424,697 
Income tax (benefit) expense from discontinued operations (20,197) 99,630  159,613  303,243 
Net (loss) income from discontinued operations $ (1,573,680) $ 564,639  $ (472,988) $ 3,121,454 
The following table summarizes the major classes of assets and liabilities of discontinued operations that were included in our condensed consolidated balance sheets:
September 30,
2026		 December 31,
2025
ASSETS
Restricted cash $ 889,736  $ — 
Accounts receivable 69,965  315,201 
Prepaid expenses and other current assets 103,233  581,504 
Assets held for sale, net of valuation allowance 5,307,684  20,051,965 
Property and equipment, net —  67,779 
Deferred tax assets (attributable to VIEs) 994,138  994,138 
Deposits and other assets 122,089  235,731 
Total assets, discontinued operations $ 7,486,845  $ 22,246,318 
LIABILITIES
Accounts payable $ 25,105  $ 83,503 
Accrued expenses 1,305,670  2,519,433 
Payroll liabilities (zero and $0.6 million attributable to VIEs, respectively)
 157,949  988,865 
Operating lease liability, current portion —  651,844 
Other current liabilities ($0.8 million attributable to VIEs)
 1,646,219  756,483 
Liabilities to be disposed of ($0.5 million and $4.7 million attributable to VIEs, respectively)
 4,050,030  16,368,318 
Total liabilities, discontinued operations $ 7,184,973  $ 21,368,446 
The key components of cash flows from discontinued operations are as follows:
Nine Months Ended September 30,
2026 2025
Significant operating and investing non-cash items:
Depreciation and amortization $ 9,581  $ 59,815 
Net loss on disposition or impairment
 3,278,826  3,746,449 
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 September 30, 2026 and December 31, 2025 were as follows:
September 30, 2026 December 31, 2025
ASSETS
Property and equipment, net
 $ 1,408,259  $ 4,497,545 
Operating lease right-of-use asset 4,044,227  14,111,081 
Intangible assets, net 235,255  4,288,265 
Goodwill 2,132,929  3,482,718 
Valuation allowance (2,512,986) (6,327,644)
Total assets held for sale, net $ 5,307,684  $ 20,051,965 
LIABILITIES
Operating lease liability, current and noncurrent $ 3,092,671  $ 11,065,542 
Deferred revenue from company-owned or managed clinics 957,359  5,302,776 
Total liabilities to be disposed of $ 4,050,030  $ 16,368,318