| Segment Reporting |
Both our Chief Executive Officer and Executive
Chairman serve as the CODM, organize the Company, manage resource allocations and measure performance among two operating and reportable
segments: (i) Healthcare IT and (ii) Practice Management.
The Healthcare IT
segment includes revenue cycle management and other services. The Practice management segment includes the management of three
medical practices. Each segment is considered a reporting unit. The CODM evaluates financial performance of the business units
on the basis of revenue and direct operating costs excluding unallocated amounts, which are mainly corporate overhead costs. Our
CODM does not evaluate operating segments using asset or liability information. The accounting policies of the segments are the
same as those disclosed in the summary of significant accounting policies. The following tables present revenues, operating expenses
and operating income (loss) by reportable segment for the years ended December 31, 2019 and 2018:
| |
|
Year Ended December 31, 2019 |
|
| |
|
Healthcare IT |
|
|
Practice Management |
|
|
Unallocated
Corporate
Expenses
|
|
|
Total |
|
| Net revenue |
|
$ |
51,171,508 |
|
|
$ |
13,267,086 |
|
|
$ |
- |
|
|
$ |
64,438,594 |
|
| Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Direct operating costs |
|
|
30,798,404 |
|
|
|
10,387,620 |
|
|
|
- |
|
|
|
41,186,024 |
|
| Selling and marketing |
|
|
1,487,196 |
|
|
|
34,619 |
|
|
|
- |
|
|
|
1,521,815 |
|
| General and administrative |
|
|
11,124,271 |
|
|
|
2,066,522 |
|
|
|
4,721,004 |
|
|
|
17,911,797 |
|
| Research and development |
|
|
870,780 |
|
|
|
- |
|
|
|
- |
|
|
|
870,780 |
|
| Change in contingent consideration |
|
|
(343,768 |
) |
|
|
- |
|
|
|
- |
|
|
|
(343,768 |
) |
| Depreciation and amortization |
|
|
2,689,240 |
|
|
|
316,366 |
|
|
|
- |
|
|
|
3,005,606 |
|
| Restructuring and impairment charges |
|
|
219,013 |
|
|
|
- |
|
|
|
- |
|
|
|
219,013 |
|
| Total operating expenses |
|
|
46,845,136 |
|
|
|
12,805,127 |
|
|
|
4,721,004 |
|
|
|
64,371,267 |
|
| Operating income (loss) |
|
$ |
4,326,372 |
|
|
$ |
461,959 |
|
|
$ |
(4,721,004 |
) |
|
$ |
67,327 |
|
| |
|
Year Ended December 31, 2018 |
|
| |
|
Healthcare IT |
|
|
Practice Management |
|
|
Unallocated
Corporate
Expenses |
|
|
Total |
|
| Net revenue |
|
$ |
44,044,700 |
|
|
$ |
6,501,081 |
|
|
$ |
- |
|
|
$ |
50,545,781 |
|
| Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Direct operating costs |
|
|
26,289,770 |
|
|
|
4,962,765 |
|
|
|
- |
|
|
|
31,252,535 |
|
| Selling and marketing |
|
|
1,593,052 |
|
|
|
18,930 |
|
|
|
- |
|
|
|
1,611,982 |
|
| General and administrative |
|
|
9,834,749 |
|
|
|
1,164,505 |
|
|
|
5,265,219 |
|
|
|
16,264,473 |
|
| Research and development |
|
|
1,029,510 |
|
|
|
- |
|
|
|
- |
|
|
|
1,029,510 |
|
| Change in contingent consideration |
|
|
73,271 |
|
|
|
- |
|
|
|
- |
|
|
|
73,271 |
|
| Depreciation and amortization |
|
|
2,700,577 |
|
|
|
153,250 |
|
|
|
- |
|
|
|
2,853,827 |
|
| Total operating expenses |
|
|
41,520,929 |
|
|
|
6,299,450 |
|
|
|
5,265,219 |
|
|
|
53,085,598 |
|
| Operating income (loss) |
|
$ |
2,523,771 |
|
|
$ |
201,631 |
|
|
$ |
(5,265,219 |
) |
|
$ |
(2,539,817 |
) |
|