Quarterly report pursuant to Section 13 or 15(d)

11. Segment Information

v3.7.0.1
11. Segment Information
3 Months Ended
Mar. 31, 2017
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 four 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.

 

  · Hospital Operations, which reflects the purchase of the Hospital Assets (see note 3) and the operations of Scott County Community Hospital, which has since been renamed as Big South Fork Medical Center.

 

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 for the year ended December 31, 2016. Selected financial information for the Company’s operating segments is as follows:

 

    Three Months Ended March 31,  
    2017     2016  
Net revenues - External                
Clinical Laboratory Operations   $ 767,010     $ 1,465,137  
Supportive Software Solutions     236,945       230,026  
Decision Support and Informatics     172,158       183,650  
    $ 1,176,113     $ 1,878,813  
Net revenues - Intersegment                
Supportive Software Solutions   $ 78,326     $ 296,348  
    $ 78,326     $ 296,348  
(Loss) income from operations                
Clinical Laboratory Operations   $ (1,341,998 )   $ (2,650,540 )
Supportive Software Solutions     (718,546 )     (1,313,313 )
Decision Support and Informatics     (301,001 )     (881,566 )
Hospital Operations     (467,316 )      
Corporate     (1,804,517 )     (1,952,437 )
Eliminations     7,851       33,660  
    $ (4,625,527 )   $ (6,764,196 )
Depreciation and amortization                
Clinical Laboratory Operations   $ 434,468     $ 581,101  
Supportive Software Solutions     157,563       164,428  
Decision Support and Informatics     8,453       14,527  
Corporate     312       875  
Eliminations     (7,851 )     (33,661 )
    $ 592,945     $ 727,270  
Capital expenditures                
Clinical Laboratory Operations   $     $ 16,885  
Supportive Software Solutions           2,117  
Hospital Operations     1,090,922        
    $ 1,090,922     $ 19,002  

 

    March 31, 2017     December 31, 2016  
Total assets                
Clinical Laboratory Operations   $ 3,568,569     $ 4,081,136  
Supportive Software Solutions     1,870,578       2,602,428  
Decision Support and Informatics     246,930       379,652  
Hospital Operations     1,342,804        
Corporate     3,839,108       2,130,191  
Eliminations     (2,786,333 )     (2,711,014 )
    $ 8,081,656     $ 6,482,393