Quarterly report pursuant to Section 13 or 15(d)

11. Segment Information

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11. Segment Information
9 Months Ended
Sep. 30, 2016
Segment Reporting [Abstract]  
Segment Reporting

Operating segments are defined under U.S. GAAP as components of an enterprise for which discrete financial information is available and are evaluated regularly by the enterprise’s chief operating decision maker in determining how to allocate resources and assess performance. The Company operates in three reportable business segments:

 

· Clinical Laboratory Operations, which specializes in providing urine and blood toxicology and pain medication testing to physicians, clinics and rehabilitation facilities in the United States.
· Supportive Software Solutions, including EHR and medical billing and laboratory information management systems.
· Decision Support and Informatics, which develops and markets medical information and clinical support products and services intended to set a standard for the clinical interpretation of genomics-based precision medicine.

 

The accounting policies of the reportable segments are the same as those described in Note 2, Summary of Significant Accounting Policies, of the Company’s audited consolidated financial statements included in the Company’s Annual Report on Form 10-K/A for the year ended December 31, 2015. Selected financial information for the Company’s operating segments is as follows:

 

    Three Months Ended September 30,     Nine Months Ended September 30,  
    2016     2015     2016     2015  
Net revenues - External                                
Clinical Laboratory Operations   $ 169,649     $ 5,972,121     $ 4,146,949     $ 28,396,875  
Supportive Software Solutions     50,447       (81,203 )     605,575       524,476  
Decision Support and Informatics     69,908             470,005        
    $ 290,004     $ 5,890,918     $ 5,222,529     $ 28,921,351  
Net revenues - Intersegment                                
Supportive Software Solutions     502,055       743,706       1,036,396       1,572,443  
    $ 502,055     $ 743,706     $ 1,036,396     $ 1,572,443  
                                 
(Loss) income from operations                                
Clinical Laboratory Operations   $ (7,583,131 )   $ (218,517 )   $ (11,281,361 )   $ 6,138,369  
Supportive Software Solutions     (1,253,386 )     (1,478,594 )     (3,800,893 )     (4,198,856 )
Decision Support and Informatics     (832,965 )           (2,390,245 )      
Corporate     (2,940,956 )     (1,874,976 )     (7,059,644 )     (7,888,747 )
Eliminations     33,662             100,986        
    $ (12,576,776 )   $ (3,572,087 )   $ (24,431,157 )   $ (5,949,234 )
Depreciation and amortization                                
Clinical Laboratory Operations   $ 562,929     $ 593,965     $ 1,706,164     $ 1,562,314  
Supportive Software Solutions     163,749       163,299       490,236       499,162  
Decision Support and Informatics     8,514             33,324        
Corporate     745             2,494        
Eliminations     (33,662 )     (28,692 )     (100,986 )     (82,470 )
    $ 702,275     $ 728,572     $ 2,131,232     $ 1,979,006  
Capital expenditures                                
Clinical Laboratory Operations   $     $ 380,196     $ 26,729     $ 363,138  
Supportive Software Solutions           9,554       9,998       61,552  
Eliminations           (65,000 )           (65,000 )
    $     $ 324,750     $ 36,727     $ 359,690  

 

    September 30, 2016     December 31, 2015  
Total assets                
Clinical Laboratory Operations   $ 7,403,965     $ 15,152,583  
Supportive Software Solutions     2,199,119       2,896,473  
Decision Support and Informatics     213,465       4,307,053  
Corporate     3,209,233       14,109,337  
Eliminations     (2,827,845 )     (7,095,520 )
    $ 10,197,937     $ 29,369,926