| Segment Information |
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 |
|
|