| 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 March 31, 2023, the Company operated or managed 130 clinics under this segment. The Franchise Operations segment is composed of the operating activities of the franchise business unit. As of March 31, 2023, the franchise system consisted of 740 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 |
|
|
|
March 31, |
|
|
|
2023 |
|
2022 |
|
|
|
|
| Revenues: |
|
|
(as restated) |
|
|
|
|
| Corporate clinics |
$ |
17,127,957 |
|
|
$ |
12,606,999 |
|
|
|
|
|
| Franchise operations |
11,172,863 |
|
|
9,629,752 |
|
|
|
|
|
| Total revenues |
$ |
28,300,820 |
|
|
$ |
22,236,751 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation and amortization: |
|
|
|
|
|
|
|
| Corporate clinics |
1,927,091 |
|
|
1,083,676 |
|
|
|
|
|
| Franchise operations |
198,974 |
|
|
173,487 |
|
|
|
|
|
| Corporate administration |
88,990 |
|
|
79,493 |
|
|
|
|
|
| Total depreciation and amortization |
$ |
2,215,055 |
|
|
$ |
1,336,656 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Segment operating (loss) income: |
|
|
|
|
|
|
|
| Corporate clinics |
$ |
(422,053) |
|
|
$ |
(145,544) |
|
|
|
|
|
| Franchise operations |
4,541,899 |
|
|
4,248,435 |
|
|
|
|
|
| Total segment operating income |
$ |
4,119,846 |
|
|
$ |
4,102,891 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation of total segment operating income to consolidated earnings before income taxes: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total segment operating income |
$ |
4,119,846 |
|
|
$ |
4,102,891 |
|
|
|
|
|
| Unallocated corporate |
(4,772,955) |
|
|
(4,141,600) |
|
|
|
|
|
| Consolidated (loss) from operations |
(653,109) |
|
|
(38,709) |
|
|
|
|
|
| Other income (expense), net |
3,821,162 |
|
|
(16,147) |
|
|
|
|
|
| (Loss) income before income tax benefit |
$ |
3,168,053 |
|
|
$ |
(54,856) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2023 |
|
December 31,
2022 |
| Segment assets: |
|
|
(as restated) |
| Corporate clinics |
$ |
57,207,324 |
|
|
$ |
56,008,234 |
|
| Franchise operations |
12,855,697 |
|
12,360,878 |
| Total segment assets |
70,063,021 |
|
68,369,112 |
|
|
|
|
| Unallocated cash and cash equivalents and restricted cash |
15,504,604 |
|
10,550,417 |
| Unallocated property and equipment |
566,513 |
|
915,216 |
| Other unallocated assets |
13,488,907 |
|
13,655,632 |
| Total assets |
$ |
99,623,045 |
|
|
$ |
93,490,377 |
|
|