Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.23.3
Segment Reporting
 6 Months Ended
Jun. 30, 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 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 June 30, 2023, the Company operated or managed 134 clinics under this segment. The Franchise Operations segment is composed of the operating activities of the franchise business unit. As of June 30, 2023, the franchise system consisted of 756 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.
Three Months Ended Six Months Ended
June 30, June 30,
2023 2022 2023 2022
Revenues: (as restated) (as restated)
Corporate clinics $ 17,802,838  $ 14,492,972  $ 34,930,795  $ 27,099,971 
Franchise operations 11,504,346  10,394,393  22,677,210  20,024,145 
Total revenues $ 29,307,184  $ 24,887,365  $ 57,608,005  $ 47,124,116 
Depreciation and amortization:
Corporate clinics 2,032,666  1,191,694  3,959,758  2,275,370 
Franchise operations 207,717  186,247  406,690  359,735 
Corporate administration 88,884  83,929  177,874  163,422 
Total depreciation and amortization $ 2,329,267  $ 1,461,870  $ 4,544,322  $ 2,798,527 
Segment operating income (loss):
Corporate clinics $ 21,790  $ 551,223  $ (400,263) $ 405,680 
Franchise operations 4,232,245  2,162,769  8,774,144  6,411,204 
Total segment operating income $ 4,254,035  $ 2,713,992  $ 8,373,881  $ 6,816,884 
Reconciliation of total segment operating income to consolidated earnings before income taxes:
Total segment operating income $ 4,254,035  $ 2,713,992  $ 8,373,881  $ 6,816,884 
Unallocated corporate (4,628,589) (4,044,458) (9,401,544) (8,186,058)
Consolidated income from operations (374,554) (1,330,466) (1,027,663) (1,369,174)
Other income (expense), net (106,520) (19,286) 3,714,642  (35,434)
(Loss) income before income tax expense $ (481,074) $ (1,349,752) $ 2,686,979  $ (1,404,608)
Segment assets: June 30,
2023		 December 31,
2022
Corporate clinics $ 56,791,939  $ 56,008,234 
Franchise operations 13,716,157 12,360,878
Total segment assets 70,508,096 68,369,112
Unallocated cash and cash equivalents and restricted cash 14,451,346 10,550,417
Unallocated property and equipment 734,432 915,216
Other unallocated assets 13,512,723 13,655,632
Total assets $ 99,206,597  $ 93,490,377 
“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.