Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.19.1
Segment Reporting
3 Months Ended
Mar. 31, 2019
Segment Reporting [Abstract]  
Segment Reporting

14. 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 Company’s Annual Report on Form 10-K for the year ended December 31, 2018 filed with the SEC on March 20, 2019. There was only one operating segment during the three months ended March 31, 2018 as the Practice Management segment was acquired in July 2018. The following table presents revenues, operating expenses and operating income by reportable segment:

 

    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 )