Annual report pursuant to Section 13 and 15(d)

Note 12 - Segment Reporting

v3.7.0.1
Note 12 - Segment Reporting
 12 Months Ended
Dec. 31, 2016
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
Note
12:
Segment Reporting
 
An operating segment is defined as a component of an enterprise for which discrete financial information is available and is reviewed regularly by the Chief Operating Decision Maker (“CODM”), to evaluate performance and make operating decisions. The Company has identified its CODM as the Chief Executive Officer.
 
The Company has
two
operating business segments. The Corporate Clinics segment is comprised of the operating activities of the company-owned or managed clinics. As of
December
31,
2016,
the Company operated or managed
61
clinics under this segment. The Franchise Operations segment is comprised of the operating activities of the franchise business unit. As of
December
31,
2016,
the franchise system consisted of
309
clinics in operation. Corporate is a non-operating segment that develops and implements strategic initiatives and supports the Company’s
two
operating business segments by centralizing key administrative functions such as finance and treasury, information technology, insurance and risk management, litigation and human resources. Corporate also provides the necessary administrative functions to support the Company as a publicly traded company. A portion of the expenses incurred by Corporate are allocated to the operating segments. 
 
The tables below present financial information for the Company’s
two
operating business segments (in thousands):
 
    Year Ended
December 31,
    2016   2015
Revenues:                
Corporate clinics   $
8,550
     $
3,492
  
Franchise operations    
11,974
      
10,344
  
Total revenues   $
20,524
     $
13,836
  
                 
Segment operating (loss) income:                
Corporate clinics   $
(9,736
 )   $
(3,773
 )
Franchise operations    
4,638
      
4,234
  
Total segment operating (loss) income   $
(5,098
 )   $
461
  
                 
Depreciation and amortization:                
Corporate clinics   $
2,186
     $
986
  
Franchise operations    
-
      
-
  
Corporate administration    
380
      
283
  
Total depreciation and amortization   $
2,566
     $
1,269
  
                 
Reconciliation of total segment operating (loss) income to consolidated loss before income taxes (in thousands):                
Total segment operating (loss) income   $
(5,098
 )   $
461
  
Unallocated corporate    
(9,925
 )    
(9,777
 )
Consolidated loss from operations    
(15,023
 )    
(9,316
 )
Bargain purchase gain    
-
      
261
  
Other income, net    
13
      
22
  
Loss before income tax expense   $
(15,010
 )   $
(9,033
 )
 
    December 31,
2016		   December 31,
2015
Segment assets:                
Corporate clinics   $
9,936
     $
12,426
  
Franchise operations    
2,003
      
2,580
  
Total segment assets   $
11,939
     $
15,006
  
                 
Unallocated cash and cash equivalents and restricted cash   $
3,344
     $
17,178
  
Unallocated property and equipment    
781
      
802
  
Other unallocated assets    
991
      
376
  
Total assets   $
17,055
     $
33,362
  
 
“Unallocated cash and cash equivalents and restricted cash” relates primarily to corporate cash and cash equivalents and restricted cash (see Note
1),
“unallocated property and equipment” relates primarily to corporate fixed assets, and “other unallocated assets” relates primarily to deposits, prepaid and other assets.