Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.7.0.1
Segment Reporting
6 Months Ended
Jun. 30, 2017
Segment Reporting [Abstract]  
Segment Reporting

Note 11 – Segment Information

 

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

 

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.
   
Corporate, reflects consolidated company wide support services such as finance, legal counsel, human resources, and payroll.

 

The Company’s Decision Support and Informatics segment is now included in discontinued operations as it has been classified as held for sale as of June 30, 2017. 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 and in Note 1 for the adoption to ASU 2017-11. Selected financial information for the Company’s operating segments is as follows:

 

    Three Months Ended June 30,     Six Months Ended June 30,  
    2017     2016     2017     2016  
Net revenues - External                        
Clinical Laboratory Operations   $ 645,386     $ 2,240,170     $ 1,407,976     $ 3,471,072  
Supportive Software Solutions     253,344       325,102       490,289       555,128  
    $ 898,730     $ 2,565,272     $ 1,898,265     $ 4,026,200  
Net revenues - Intersegment (***)                                
Supportive Software Solutions     206,167       237,993       284,493       534,341  
    $ 206,167     $ 237,993     $ 284,493     $ 534,341  
(Loss) income from operations                                
Clinical Laboratory Operations   $ (1,477,754 )   $ (886,541 )   $ (2,770,028 )   $ (3,226,339 )
Supportive Software Solutions     (342,348 )     (1,234,194 )     (1,060,894 )     (2,547,507 )
Hospital Operations     (553,352 )     -       (1,020,668 )     -  
Corporate     (1,884,287 )     (2,166,251 )     (3,688,800 )     (4,118,688 )
Eliminations     330       33,664       8,181       67,324  
    $ (4,257,411 )   $ (4,253,322 )   $ (8,532,209 )   $ (9,825,210 )
Depreciation and amortization                                
Clinical Laboratory Operations   $ 419,905     $ 548,870     $ 854,373     $ 1,096,419  
Supportive Software Solutions     45,421       162,059       202,984       326,487  
Hospital Operations     6,609       -       6,609       -  
Corporate     349       875       660       1,749  
Eliminations     (330 )     (33,663 )     (8,181 )     (67,324 )
    $ 471,954     $ 678,141     $ 1,056,445     $ 1,357,331  
Capital expenditures                                
Clinical Laboratory Operations   $ -     $ 14,473     $ -     $ 6,000  
Supportive Software Solutions     -       7,881       -       9,998  
Hospital Operations     214,147       -       1,305,069       -  
    $ 214,147     $ 22,354     $ 1,305,069     $ 15,998  

 

*** Intersegment revenues are eliminated in consolidation.

   

    June 30, 2017     December 31, 2016  
Total assets                
Clinical Laboratory Operations   $ 2,195,239     $ 3,986,126  
Supportive Software Solutions     1,863,113       2,602,428  
Decision Support and Informatics     -       60,000  
Hospital Operations     1,360,800       -  
Corporate     2,897,573       2,130,191  
Assets of AMSG classified as held for sale     67,579       414,662  
Eliminations     (2,696,985 )     (2,711,014 )
    $ 5,687,319     $ 6,482,393