Annual report pursuant to Section 13 and 15(d)

Note 12 - Segment Reporting

v3.8.0.1
Note 12 - Segment Reporting
 12 Months Ended
Dec. 31, 2017
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, 2017,
the Company operated or managed
47
clinics under this segment. The Franchise Operations segment is comprised of the operating activities of the franchise business unit. As of
December 31, 2017,
the franchise system consisted of
352
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,
    2017   2016
Revenues:                
Corporate clinics   $
11,125
     $
8,550
  
Franchise operations    
14,039
      
11,974
  
Total revenues   $
25,164
     $
20,524
  
                 
Segment operating (loss) income:                
Corporate clinics   $
(1,704
 )   $
(9,730
 )
Franchise operations    
6,243
      
4,561
  
Total segment operating (loss) income   $
4,539
     $
(5,169
 )
                 
Depreciation and amortization:                
Corporate clinics   $
1,608
     $
2,186
  
Franchise operations    
-
      
-
  
Corporate administration    
409
      
380
  
Total depreciation and amortization   $
2,017
     $
2,566
  
                 
Reconciliation of total segment operating income (loss) to consolidated loss before income tax expense:                
Total segment operating income (loss)   $
4,539
     $
(5,169
 )
Unallocated corporate overhead    
(7,714
 )    
(9,839
 )
Consolidated loss from operations    
(3,175
 )    
(15,008
 )
Other (expense) income, net    
(64
 )    
(1
 )
Loss before income tax expense   $
(3,239
 )   $
(15,009
 )
 
 
    December 31,   December 31,
    2017   2016
Segment assets:                
Corporate clinics   $
8,998
     $
9,936
  
Franchise operations    
2,362
      
2,003
  
Total segment assets   $
11,360
     $
11,939
  
                 
Unallocated cash and cash equivalents and restricted cash   $
4,320
     $
3,344
  
Unallocated property and equipment    
765
      
781
  
Other unallocated assets    
465
      
991
  
Total assets   $
16,910
     $
17,055
  
 
“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.