Quarterly report [Sections 13 or 15(d)]

Divestitures (Tables)

v3.25.3
Divestitures (Tables)
 9 Months Ended
Sep. 30, 2025
Discontinued Operations and Disposal Groups [Abstract]  
Schedule of Discontinued Operations
During the three and nine months ended September 30, 2024, property and equipment, net related to asset groups determined to not be recoverable were written down from their carrying values to their respective fair values resulting in the following non-cash impairment losses:
Three Months Ended September 30, 2024
Carrying Value Fair Value Net loss on disposition or impairment related to discontinued operations
Property and equipment, net $ 2,019,135  $ 1,366,333  $ 652,802 
Operating lease right-of-use asset 5,512,568  4,275,004  1,237,564 
Total net loss on disposition or impairment related to discontinued operations $ 1,890,366 
Nine Months Ended September 30, 2024
Carrying Value Fair Value Net loss on disposition or impairment related to discontinued operations
Property and equipment, net $ 3,919,827  $ 2,715,446  $ 1,204,381 
Operating lease right-of-use asset 5,591,358  4,347,457  1,243,901 
Intangible assets, net 298,510  252,746  45,764 
Total net loss on disposition or impairment related to discontinued operations $ 2,494,046 
As a result of its evaluation of the recoverability of the carrying value of the assets and liabilities held for sale relative to the agreed upon sales prices or the clinics estimated fair values, the Company recorded an estimated net
loss on disposal, which is included in Income (loss) from discontinued operations before income tax expense in its condensed consolidated income statement as follows:
Three Months Ended
September 30,		 Nine Months Ended
September 30,
2025 2024 2025 2024
Net loss on disposition or impairment related to discontinued operations $ 461,347  $ 1,865,124  $ 1,884,111  $ 2,570,461 
The following table shows a reconciliation of the Company’s impairment and disposal losses recorded in Income (loss) from discontinued operations before income tax expense for the three and nine months ended September 30, 2025 and 2024:
Three Months Ended
September 30,		 Nine Months Ended
September 30,
2025 2024 2025 2024
Impairment on long-lived assets held for use
Property and equipment, net $ —  $ 652,802  $ —  $ 1,204,381 
Operating lease right-of-use asset —  1,237,564  —  1,243,901 
Intangible assets, net —  —  —  45,764 
Impairment on assets held for sale
Assets held for sale 461,347  1,865,124  1,884,111  2,570,461 
Loss on disposal of assets other than by sale
Property and equipment, net 125,102  3,549  392,266  196,457 
Operating lease right-of-use asset 251,568  32,775  677,346  406,039 
Loss (gain) on sale of assets 22,581  9,823  792,726  (68,880)
Total net loss on disposition or impairment related to discontinued operations $ 860,598  $ 3,801,637  $ 3,746,449  $ 5,598,123 
The key components of Net income (loss) from discontinued operations that were included in the Company’s condensed consolidated income statements are as follows:
Three Months Ended September 30, Nine Months Ended September 30,
2025 2024 2025 2024
Revenues:
Revenues from company-owned or managed clinics $ 10,520,596  $ 17,544,094  $ 44,068,960  $ 52,732,070 
Total revenues 10,520,596  17,544,094  44,068,960  52,732,070 
Cost of revenues:
IT cost of revenues 4,181  8,304  15,906  34,150 
Total cost of revenues 4,181  8,304  15,906  34,150 
Selling and marketing expenses 1,012,959  2,258,227  4,731,358  5,868,201 
Depreciation and amortization 16,310  893,398  59,815  3,149,029 
General and administrative expenses 7,942,168  13,275,594  32,070,385  40,977,423 
Total selling, general and administrative expenses 8,971,437  16,427,219  36,861,558  49,994,653 
Net loss on disposition or impairment from discontinued operations 860,598  3,801,637  3,746,449  5,598,123 
Income (loss) from discontinued operations 684,380  (2,693,066) 3,445,047  (2,894,856)
Other expense, net 20,111  496  20,350  1,685 
Income (loss) before income tax expense 664,269  (2,693,562) 3,424,697  (2,896,541)
Income tax expense from discontinued operations 99,630  57,194  303,243  394,692 
Net income (loss) from discontinued operations $ 564,639  $ (2,750,756) $ 3,121,454  $ (3,291,233)
The following table summarizes the major classes of assets and liabilities of discontinued operations that were included in the Company’s condensed consolidated balance sheets:
September 30,
2025		 December 31,
2024
ASSETS
Accounts receivable $ 508,706  $ 2,484,248 
Prepaid expenses and other current assets 548,855  549,605 
Assets held for sale, net of valuation allowance 21,151,802  38,395,986 
Property and equipment, net 132,983  208,074 
Deferred tax assets (attributable to VIEs) 1,087,204  1,087,204 
Deposits and other assets 289,532  425,938 
Total assets, discontinued operations $ 23,719,082  $ 43,151,055 
LIABILITIES
Accounts payable $ 55,049  $ 67,107 
Accrued expenses 3,053,561  5,066,941 
Payroll liabilities ($0.5 million and $0.9 million attributable to VIEs, respectively)
 1,536,008  2,333,335 
Operating lease liability, current portion 123,315  153,517 
Finance lease liability, current portion —  38,015 
Other current liabilities (attributable to VIEs) 1,079,441  1,079,441 
Liabilities to be disposed of ($4.3 million and $5.2 million attributable to VIEs, respectively)
 17,031,433  28,629,103 
Total liabilities, discontinued operations $ 22,878,807  $ 37,367,459 
The key components of cash flows from discontinued operations are as follows:
Nine Months Ended September 30,
2025 2024
Depreciation and amortization $ 59,815  $ 3,149,029 
Capital expenditures
Purchase of property and equipment 73,535  279,814 
Significant operating and investing non-cash items
Net loss on disposition or impairment 3,746,449  5,598,123 
The principal components of the held for sale assets and liabilities to be disposed of as of September 30, 2025 and December 31, 2024 were as follows:
September 30, 2025 December 31, 2024
Assets
Property and equipment, net
 $ 4,876,430  $ 8,457,627 
Operating lease right-of-use asset 14,252,943  19,643,917 
Intangible assets, net 4,518,833  6,906,807 
Goodwill 3,482,718  8,459,238 
Valuation allowance (5,979,122) (5,071,603)
Total assets held for sale, net $ 21,151,802  $ 38,395,986 
Liabilities
Operating lease liability, current and non-current $ 12,135,849  $ 20,526,714 
Deferred revenue from company-owned or managed clinics 4,895,584  8,102,389 
Total liabilities to be disposed of $ 17,031,433  $ 28,629,103