| Segment Reporting |
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, 2022, the Company operated or managed 126 clinics under this segment. The Franchise Operations segment is comprised of the operating activities of the franchise business unit. As of December 31, 2022, the franchise system consisted of 712 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, legal 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
2022 |
|
2021 |
|
(As Restated) |
|
(As Restated) |
| Revenues: |
|
|
|
| Corporate clinics |
$ |
59,422,294 |
|
|
$ |
44,348,234 |
|
| Franchise operations |
41,830,016 |
|
|
35,662,779 |
|
Total revenues |
$ |
101,252,310 |
|
|
$ |
80,011,013 |
|
|
|
|
|
| Depreciation and amortization: |
|
|
|
| Corporate clinics |
$ |
5,557,494 |
|
|
$ |
3,279,603 |
|
| Franchise operations |
744,172 |
|
|
334,945 |
|
| Corporate administration |
344,956 |
|
|
307,339 |
|
| Total depreciation and amortization |
$ |
6,646,622 |
|
|
$ |
3,921,887 |
|
|
|
|
|
| Segment operating income: |
|
|
|
| Corporate clinics |
$ |
110,257 |
|
|
$ |
6,599,932 |
|
| Franchise operations |
17,340,402 |
|
|
15,353,621 |
|
| Unallocated corporate |
(16,622,405) |
|
|
(15,827,588) |
|
| Total segment operating income |
$ |
828,254 |
|
|
$ |
6,125,965 |
|
|
|
|
|
| Reconciliation of total segment operating income to consolidated earnings before income taxes: |
|
|
|
| Total segment operating income |
$ |
828,254 |
|
|
$ |
6,125,965 |
|
| Other (expense), net |
(133,101) |
|
|
(69,878) |
|
| Income before income tax expense (benefit) |
$ |
695,153 |
|
|
$ |
6,056,087 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2022 |
|
December 31, 2021 |
|
(As Restated) |
|
(As Restated) |
| Segment assets: |
|
|
|
| Corporate clinics |
$ |
56,008,234 |
|
|
$ |
40,032,271 |
|
| Franchise operations |
12,360,878 |
|
|
12,593,912 |
|
| Total segment assets |
$ |
68,369,112 |
|
|
$ |
52,626,183 |
|
|
|
|
|
| Unallocated cash and cash equivalents and restricted cash |
$ |
10,550,417 |
|
|
$ |
19,912,338 |
|
| Unallocated property and equipment |
915,216 |
|
|
857,176 |
|
| Other unallocated assets |
13,655,632 |
|
|
13,666,050 |
|
| Total assets |
$ |
93,490,377 |
|
|
$ |
87,061,747 |
|
|