Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.20.1
Segment Reporting
 3 Months Ended
Mar. 31, 2020
Segment Reporting [Abstract]  
Segment Reporting

14. SEGMENT REPORTING

 

Both our Chief Executive Officer and Executive Chairman serve as the Chief Operating Decision Maker (“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, SaaS solutions and other services. The Practice Management segment includes the management of three medical practices and starting April 1, 2019, certain practice management services are being provided to a fourth practice. 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 Company's Annual Report on Form 10-K for the year ended December 31, 2019 filed with the SEC on February 28, 2020. The following tables present revenues, operating expenses and operating income (loss) by reportable segment:

 

    Three Months Ended March 31, 2020  
    Healthcare IT     Practice Management     Unallocated Corporate Expenses     Total  
Net revenue   $ 18,840,865     $ 3,026,304     $ -     $ 21,867,169  
Operating expenses:                                
Direct operating costs     11,165,926       2,400,804       -       13,566,730  
Selling and marketing     1,572,772       8,581       -       1,581,353  
General and administrative     3,880,222       556,508       1,155,995       5,592,725  
Research and development     2,333,126       -       -       2,333,126  
Change in contingent consideration     -       -       -       -  
Depreciation and amortization     1,253,289       79,497       -       1,332,786  
Impairment charges     297,651       -       -       297,651  
Total operating expenses     20,502,986       3,045,390       1,155,995       24,704,371  
Operating income (loss)   $ (1,662,121 )   $ (19,086 )   $ (1,155,995 )   $ (2,837,202 )

 

    Three Months Ended March 31, 2019  
    Healthcare IT     Practice Management     Unallocated Corporate Expenses     Total  
Net revenue   $ 12,119,744     $ 2,960,467     $ -     $ 15,080,211  
Operating expenses:                                
Direct operating costs     7,474,454       2,373,086       -       9,847,540  
Selling and marketing     351,951       9,448       -       361,399  
General and administrative     2,462,403       396,370       1,303,303       4,162,076  
Research and development     254,656       -       -       254,656  
Change in contingent consideration     (64,203 )     -       -       (64,203 )
Depreciation and amortization     677,987       78,753       -       756,740  
Total operating expenses     11,157,248       2,857,657       1,303,303       15,318,208  
Operating income (loss)   $ 962,496     $ 102,810     $ (1,303,303 )   $ (237,997 )