Quarterly report pursuant to Section 13 or 15(d)

Note 11 - Segment Reporting

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Note 11 - Segment Reporting
 6 Months Ended
Jun. 30, 2016
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
Note 11:      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. We have identified our CODM as the Chief Executive Officer.
 
The Company operates two business segments. The Corporate Clinics segment is comprised of the operating activities of the company-owned or managed clinics. As of June 30, 2016, we operated or managed 61 clinics under this segment. The Franchise Operations segment is comprised of the operating activities of the franchise business unit. As of June 30, 2016, the franchise system consisted of 280 clinics in operation. Corporate is a non-operating segment that develops and implements strategic initiatives and supports our operating 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 our two reportable operating segments (in thousands):
 
    Three Months Ended
June 30,		   Six Months Ended
June 30,
    2016   2015   2016   2015
Revenues:                                
Corporate clinics   $ 2,137     $ 624     $ 3,796     $ 1,011  
Franchise operations     2,837       2,802       5,443       4,924  
Total revenues   $ 4,974     $ 3,426     $ 9,239     $ 5,935  
                                 
Segment operating income (loss):                                
Corporate clinics   $ (1,651 )   $ (588 )   $ (3,335 )   $ (584 )
Franchise operations     1,013       1,117       2,080       1,791  
Total segment operating income (loss)   $ (638 )   $ 529     $ (1,255 )   $ 1,207  
                                 
Depreciation and amortization:                                
Corporate clinics   $ 534     $ 199     $ 1,027     $ 257  
Franchise operations     -       -       -       -  
Corporate administration     103       80       186       144  
Total depreciation and amortization   $ 637     $ 279     $ 1,213     $ 401  
                                 
Reconciliation of total segment operating income (loss) to consolidated earnings (loss) before income taxes (in thousands):                                
Total segment operating income (loss)   $ (638 )   $ 529     $ (1,255 )   $ 1,207  
Unallocated corporate     (2,553 )     (2,375 )     (5,421 )     (4,968 )
Consolidated loss from operations     (3,191 )     (1,846 )     (6,676 )     (3,761 )
Other income (expense), net     3       (10 )     8       2  
Loss before income tax (expense) benefit   $ (3,188 )   $ (1,856 )   $ (6,668 )   $ (3,759 )
 
 
    June 30,
2016		   December 31,
2015
Segment assets:                
Corporate clinics   $ 14,954     $ 12,426  
Franchise operations     2,264       2,580  
Total segment assets     17,218       15,006  
                 
Unallocated cash and cash equivalents     6,684       17,178  
Unallocated property and equipment     1,020       802  
Other unallocated assets     335       376  
Total assets   $ 25,257     $ 33,362  
 
“Unallocated cash and cash equivalents” relates primarily to corporate cash and cash equivalents, “unallocated property and equipment” relates primarily to corporate fixed assets, and “other unallocated assets” relates primarily to deposits, prepaid and other assets.