Annual report pursuant to Section 13 and 15(d)

Segment Reporting

v3.24.0.1
Segment Reporting
12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
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, 2023, the Company operated or managed 135 clinics under this segment. The Franchise Operations segment is comprised of the operating activities of the franchise business unit. As of December 31, 2023, the franchise system consisted of 800 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,
2023 2022
Revenues:
Corporate clinics $ 70,718,880  $ 59,422,294 
Franchise operations 46,977,476  41,830,016 
Total revenues
$ 117,696,356  $ 101,252,310 
Depreciation and amortization:
Corporate clinics $ 7,415,395  $ 5,557,494 
Franchise operations 809,135  744,172 
Corporate administration 357,673  344,956 
Total depreciation and amortization $ 8,582,203  $ 6,646,622 
Segment operating (loss) income:
Corporate clinics $ (2,502,643) $ 110,257 
Franchise operations 20,332,354  17,340,402 
Unallocated corporate (19,902,798) (16,622,405)
Total segment operating (loss) income $ (2,073,087) $ 828,254 
Reconciliation of total segment operating (loss) income to consolidated earnings before income taxes:
Total segment operating (loss) income $ (2,073,087) $ 828,254 
Other income (expense), net 3,711,843  (133,101)
Income before income tax expense $ 1,638,756  $ 695,153 
December 31, 2023 December 31, 2022
Segment assets:
Corporate clinics $ 52,210,617  $ 56,008,234 
Franchise operations 10,521,582  12,360,878 
Total segment assets $ 62,732,199  $ 68,369,112 
Unallocated cash and cash equivalents and restricted cash $ 19,214,292  $ 10,550,417 
Unallocated property and equipment 2,843,491  915,216 
Other unallocated assets 2,360,877  13,655,632 
Total assets $ 87,150,859  $ 93,490,377 
“Unallocated cash and cash equivalents and restricted cash” relates primarily to corporate cash and cash equivalents and restricted cash as discussed at Note 1, "Cash and Cash Equivalents," “unallocated property and equipment” relates primarily to corporate fixed assets, and “other unallocated assets” relates primarily to deposits, prepaid and other assets.