Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.20.2
Segment Reporting
 9 Months Ended
Sep. 30, 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. 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 (loss) income by reportable segment:

 

    Nine Months Ended September 30, 2020  
    Healthcare IT     Practice Management     Unallocated Corporate
Expenses		     Total  
Net revenue   $ 64,158,133     $ 8,926,442     $ -     $ 73,084,575  
Operating expenses:                                
Direct operating costs     39,073,783       6,768,005       -       45,841,788  
Selling and marketing     4,752,713       25,105       -       4,777,818  
General and administrative     11,067,480       1,492,865       4,616,248       17,176,593  
Research and development     6,846,014       -       -       6,846,014  
Change in contingent consideration     (500,000 )     -       -       (500,000 )
Depreciation and amortization     6,705,215       238,490       -       6,943,705  
Impairment and unoccupied lease charges     681,400       -       -       681,400  
Total operating expenses     68,626,605       8,524,465       4,616,248       81,767,318  
Operating (loss) income   $ (4,468,472 )   $ 401,977     $ (4,616,248 )   $ (8,682,743 )

 

    Three Months Ended September 30, 2020  
    Healthcare IT     Practice Management     Unallocated Corporate
Expenses		     Total  
Net revenue   $ 28,191,057     $ 3,447,559     $ -     $ 31,638,616  
Operating expenses:                                
Direct operating costs     17,147,137       2,571,244       -       19,718,381  
Selling and marketing     1,563,255       8,168       -       1,571,423  
General and administrative     4,173,350       468,172       1,549,486       6,191,008  
Research and development     2,366,560       -       -       2,366,560  
Change in contingent consideration     (500,000 )     -       -       (500,000 )
Depreciation and amortization     3,126,508       79,497       -       3,206,005  
Impairment and unoccupied lease charges     320,575       -       -       320,575  
Total operating expenses     28,197,385       3,127,081       1,549,486       32,873,952  
Operating (loss) income   $ (6,328 )   $ 320,478     $ (1,549,486 )   $ (1,235,336 )

 

    Nine Months Ended September 30, 2019  
    Healthcare IT     Practice Management     Unallocated Corporate
Expenses		     Total  
Net revenue   $ 38,518,361     $ 10,162,677     $ -     $ 48,681,038  
Operating expenses:                                
Direct operating costs     23,912,120       7,867,444       -       31,779,564  
Selling and marketing     1,065,750       25,774       -       1,091,524  
General and administrative     8,549,122       1,504,506       3,704,177       13,757,805  
Research and development     648,822       -       -       648,822  
Change in contingent consideration     (343,768 )     -       -       (343,768 )
Depreciation and amortization     2,170,204       236,907       -       2,407,111  
Restructuring and impairment charges     136,332       -       -       136,332  
Total operating expenses     36,138,582       9,634,631       3,704,177       49,477,390  
Operating income (loss)   $ 2,379,779     $ 528,046     $ (3,704,177 )   $ (796,352 )

 

    Three Months Ended September 30, 2019  
    Healthcare IT     Practice Management     Unallocated Corporate
Expenses		     Total  
Net revenue   $ 12,938,042     $ 3,913,286     $ -     $ 16,851,328  
Operating expenses:                                
Direct operating costs     7,508,208       3,027,421       -       10,535,629  
Selling and marketing     339,603       7,965       -       347,568  
General and administrative     2,791,573       548,746       1,111,656       4,451,975  
Research and development     175,758       -       -       175,758  
Change in contingent consideration     (279,565 )     -       -       (279,565 )
Depreciation and amortization     735,133       79,077       -       814,210  
Restructuring and impairment charges     136,332       -       -       136,332  
Total operating expenses     11,407,042       3,663,209       1,111,656       16,181,907  
Operating income (loss)   $ 1,531,000     $ 250,077     $ (1,111,656 )   $ 669,421