| 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 and one non-operating business segment. The Corporate Clinics segment is composed of the operating activities of the company-owned or managed clinics. As of September 30, 2021, the Company operated or managed 83 clinics under this segment. The Franchise Operations segment is composed of the operating activities of the franchise business unit. As of September 30, 2021, the franchise system consisted of 583 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 business segments.
The tables below present financial information for the Company’s two operating business segments.
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Three Months Ended |
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Nine Months Ended |
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September 30, |
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September 30, |
Revenues: |
2021 |
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2020 |
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2021 |
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2020 |
Corporate clinics |
$ |
11,634,009 |
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$ |
8,403,844 |
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$ |
32,537,942 |
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$ |
22,554,946 |
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Franchise operations |
9,357,612 |
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7,006,709 |
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26,220,441 |
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19,089,886 |
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Total revenues |
$ |
20,991,621 |
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$ |
15,410,553 |
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$ |
58,758,383 |
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$ |
41,644,832 |
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Depreciation and amortization: |
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| Corporate clinics |
1,538,251 |
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636,734 |
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3,879,786 |
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1,828,643 |
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| Franchise operations |
165,475 |
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342 |
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166,159 |
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1,027 |
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| Corporate administration |
(41,471) |
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77,212 |
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229,195 |
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232,267 |
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| Total depreciation and amortization |
$ |
1,662,255 |
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$ |
714,288 |
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$ |
4,275,140 |
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$ |
2,061,937 |
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Segment operating income: |
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Corporate clinics |
$ |
1,241,081 |
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$ |
1,313,717 |
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$ |
4,415,793 |
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$ |
2,662,643 |
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Franchise operations |
4,156,829 |
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3,404,723 |
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11,887,071 |
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8,778,537 |
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Total segment operating income |
$ |
5,397,910 |
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$ |
4,718,440 |
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$ |
16,302,864 |
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$ |
11,441,180 |
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| Reconciliation of total segment operating income to consolidated earnings before income taxes: |
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| Total segment operating income |
$ |
5,397,910 |
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$ |
4,718,440 |
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$ |
16,302,864 |
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$ |
11,441,180 |
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Unallocated corporate |
(4,059,032) |
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(3,013,084) |
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(10,957,559) |
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(8,723,890) |
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| Consolidated income from operations |
1,338,878 |
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1,705,356 |
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5,345,305 |
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2,717,290 |
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| Other expense, net |
16,139 |
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25,667 |
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54,050 |
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55,248 |
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| Income before income tax benefit |
$ |
1,322,739 |
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$ |
1,679,689 |
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$ |
5,291,255 |
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$ |
2,662,042 |
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| Segment assets: |
September 30,
2021 |
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December 31,
2020 |
| Corporate clinics |
$ |
36,778,871 |
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$ |
24,928,311 |
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| Franchise operations |
12,257,569 |
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9,744,375 |
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| Total segment assets |
49,036,440 |
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34,672,686 |
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(As Revised) |
| Unallocated cash and cash equivalents and restricted cash |
19,992,282 |
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20,819,629 |
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| Unallocated property and equipment |
913,988 |
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1,063,815 |
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| Other unallocated assets |
11,036,188 |
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9,257,153 |
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| Total assets |
$ |
80,978,898 |
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$ |
65,813,283 |
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