Annual report pursuant to Section 13 and 15(d)

SEGMENT REPORTING

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SEGMENT REPORTING
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
SEGMENT REPORTING

18. 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, 2021 and 2020:

 

    Year Ended December 31, 2021  
    ($ in thousands)  
    Healthcare IT    

Medical

Practice Management

    

Unallocated Corporate

Expenses

     Total  
Net revenue   $ 127,080     $ 12,519     $ -     $ 139,599  
Operating expenses:                                
Direct operating costs     76,981       9,937       -       86,918  
Selling and marketing     8,755       31       -       8,786  
General and administrative     13,910       2,080       8,283       24,273  
Research and development     4,408       -       -       4,408  
Change in contingent consideration     (2,515 )     -       -       (2,515 )
Depreciation and amortization     11,854       341       -       12,195  
Loss on lease termination, impairment and unoccupied lease charges     2,005       -       -       2,005  
Total operating expenses     115,398       12,389       8,283       136,070  
Operating income (loss)   $ 11,682     $ 130     $ (8,283 )   $ 3,529  

 

 

    Year Ended December 31, 2020  
    ($ in thousands)  
    Healthcare IT    

Medical

Practice Management

    

Unallocated Corporate

Expenses

     Total  
Net revenue   $ 93,324     $ 11,798     $ -     $ 105,122  
Operating expenses:                                
Direct operating costs     55,653       9,168       -       64,821  
Selling and marketing     6,549       33       -       6,582  
General and administrative     14,578       1,978       6,255       22,811  
Research and development     9,311       -       -       9,311  
Change in contingent consideration     (1,000 )     -       -       (1,000 )
Depreciation and amortization     9,587       318       -       9,905  
Impairment and unoccupied lease charges     963       -       -       963  
Total operating expenses     95,641       11,497       6,255       113,393  
Operating (loss) income   $ (2,317 )   $ 301     $ (6,255 )   $ (8,271 )