Note 18 - Reportable Segments

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 18.  Reportable Segments

The Company has two reportable segments: (i) e-Commerce Operations, which involves acquiring and leasing, primarily an e-commerce platform to collaborate with businesses to optimize their ability to sell their goods online, domestically, and internationally, and enabling customers and partners to optimize their e-commerce presence and revenue, and other related businesses and (ii) Healthcare Operations, which provides third party administrator (TPA), data management, COVID-19 related diagnostics and vaccinations, prescription pharmaceuticals, compounded medications, telepharmacy services, anti-retroviral medications, medication therapy management, the supply of prescription medications to long-term care facilities, medication adherence packaging, contracted pharmacy services for 340B covered entities under the 340B Drug Discount Pricing Program, and health practice risk management. 

The Company evaluates the performance of each of the segments based on profit or loss after general and administrative expenses. While the Company believes there are synergies between the two business segments, the segments are managed separately because each requires different business strategies.

The following tables present a summary of the reportable segments (in thousands):

For the Three Months Ended September 30, 2024	e-Commerce Operations			Healthcare Operations			Eliminations			Total
Pharmacy prescription and other revenue, net of PBM fees	$	—		$	9,076		$	—		$	9,076
e-Commerce revenue		3,834			—			—			3,834
Pharmacy 340B contract revenue		—			2,457			—			2,457
Revenues, net	$	3,834		$	11,533		$	—		$	15,367
Expenses:
Cost of revenue		2,756			9,091			—			11,847
Selling, general and administrative		969			1,384			(60	)		2,293
Salaries, wages and payroll taxes		617			2,258			—			2,875
Impairment loss		—			3,729			—			3,729
Professional fees		1,481			663			—			2,144
Depreciation and amortization		141			337			—			478
Total expenses		5,964			17,462			(60	)		23,366
Loss before other (income) expense		(2,130	)		(5,929	)		60			(7,999	)
Other income		(324	)		(116	)		60			(380	)
Loss before income taxes		(1,806	)		(5,813	)		—			(7,619	)
Income taxes		(45	)		—			—			(45	)
Net loss	$	(1,851	)	$	(5,813	)	$	—		$	(7,664	)

For the Three Months Ended September 30, 2023	e-Commerce Operations			Healthcare Operations			Eliminations			Total
Pharmacy prescription and other revenue, net of PBM fees	$	—		$	9,888		$	—		$	9,888
e-Commerce revenue		2,931			—			—			2,931
Pharmacy 340B contract revenue		—			2,471			—			2,471
Revenues, net	$	2,931		$	12,359		$	—		$	15,290
Expenses:
Cost of revenue		2,127			8,578			—			10,705
Selling, general and administrative		1,978			2,269			(60	)		4,187
Salaries, wages and payroll taxes		564			1,919			—			2,483
Professional fees		278			243			—			521
Depreciation and amortization		164			707			—			871
Total expenses		5,111			13,716			(60	)		18,767
Loss before other (income) expense		(2,180	)		(1,357	)		60			(3,477	)
Other (income) expense		(76	)		17			60			1
Loss before income taxes		(2,104	)		(1,374	)		—			(3,478	)
Income taxes		(23	)		—			—			(23	)
Loss before equity method investment		(2,127	)		(1,374	)		—			(3,501	)
Gain on equity method investment		6,138			—			—			6,138
Equity in net loss of affiliate		—			—			—			—
Net loss	$	4,011		$	(1,374	)	$	—		$	2,637

For the Nine Months Ended September 30, 2024	e-Commerce Operations			Healthcare Operations			Eliminations			Total
Pharmacy prescription and other revenue, net of PBM fees	$	—		$	30,922		$	—		$	30,922
e-Commerce revenue		10,210			—			—			10,210
Pharmacy 340B contract revenue		—			8,717			—			8,717
Revenues, net	$	10,210		$	39,639		$	—		$	49,849
Expenses:
Cost of revenue		7,217			28,496			—			35,713
Selling, general and administrative		3,517			3,179			(180	)		6,516
Salaries, wages and payroll taxes		1,744			6,540			—			8,284
Impairment loss		—			13,653			—			13,653
Professional fees		2,608			1,525			—			4,133
Depreciation and amortization		417			1,870			—			2,287
Total expenses		15,503			55,263			(180	)		70,586
Loss before other (income) expense		(5,293	)		(15,624	)		180			(20,737	)
Other income		(735	)		(166	)		180			(721	)
Loss before income taxes		(4,558	)		(15,458	)		—			(20,016	)
Income taxes		(92	)		—			—			(92	)
Net loss	$	(4,650	)	$	(15,458	)	$	—		$	(20,108	)

For the Nine Months Ended September 30, 2023	e-Commerce Operations			Healthcare Operations			Eliminations			Total
Pharmacy prescription and other revenue, net of PBM fees	$	—		$	9,888		$	—		$	9,888
e-Commerce revenue		8,764			—			—			8,764
Pharmacy 340B contract revenue		—			2,471			—			2,471
Revenues, net	$	8,764		$	12,359		$	—		$	21,123
Expenses:
Cost of revenue		6,495			8,579			—			15,074
Selling, general and administrative		5,287			2,269			(60	)		7,496
Salaries, wages and payroll taxes		2,120			1,919			—			4,039
Professional fees		1,143			242			—			1,385
Depreciation and amortization		493			708			—			1,201
Total expenses		15,538			13,717			(60	)		29,195
Loss before other (income) expense		(6,774	)		(1,358	)		60			(8,072	)
Other (income) expense		(635	)		17			60			(558	)
Loss before income taxes		(6,139	)		(1,375	)		—			(7,514	)
Income taxes		(75	)		—			—			(75	)
Loss before equity method investment		(6,214	)		(1,375	)		—			(7,589	)
Gain on equity method investment		6,138			—			—			6,138
Equity in net loss of affiliate		(1,440	)		—			—			(1,440	)
Net loss	$	(1,516	)	$	(1,375	)	$	—		$	(2,891	)

	e-Commerce Operations		Healthcare Operations		Eliminations			Total
Total assets as of September 30, 2024	$	38,566	$	19,212	$	(16,679	)	$	41,099
Total assets as of December 31, 2023	$	40,764	$	40,384	$	(16,679	)	$	64,469