| 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 |
|
|