. Segments

The Company is a holding company, which owns interests in subsidiaries and other companies that are primarily engaged in the provision of healthcare and workforce development services. The subsidiaries and other companies in which the Company holds interests comprise the following segments:

●

NET Services – Nationwide provider of non-emergency medical transportation programs for state governments and managed care organizations.

●

WD Services – Global provider of employment preparation and placement and legal offender rehabilitation services to eligible participants of government sponsored programs.

●

Matrix Investment – Minority interest in nationwide provider of in-home care optimization and management solutions, including comprehensive health assessments, to members of managed care organizations, accounted for as an equity method investment.

Effective

October

19,

2016,

pursuant to the Matrix Transaction, the Company no longer owns a controlling interest in Matrix, which historically constituted the HA Services segment as further discussed in Note

13,

Discontinued Operations

. As the HA Services segment, through

October

19,

2016,

is presented as a discontinued operation, it is not reflected in the Company’s segment disclosures. However, the Company accounts for its noncontrolling interest in Matrix from

October

19,

2016

through present as an equity method investment, which solely comprises Matrix Investment in the table below.

The following table sets forth certain financial information from continuing operations attributable to the Company’s business segments for the

three

months ended

March

31,

2017

and

2016:

	Three months ended March 31, 2017
	NET Services		WD Services		Matrix Investment		Corporate and Other			Total
Service revenue, net	$	324,034	$	75,460	$	-	$	-		$	399,494
Service expense		306,192		63,203		-		15			369,410
General and administrative expense		2,891		7,044		-		7,092			17,027
Depreciation and amortization		3,151		3,040		-		78			6,269
Operating income (loss)	$	11,800	$	2,173	$	-	$	(7,185	)	$	6,788

Equity in net loss of investee	$	-	$	1,400	$	660	$	-		$	2,060

	Three months ended March 31, 2016
	NET Services		WD Services			Matrix Investment		Corporate and Other			Total
Service revenue, net	$	290,962	$	91,043		$	-	$	31		$	382,036
Service expense		266,947		81,672			-		57			348,676
General and administrative expense		2,837		7,871			-		7,808			18,516
Depreciation and amortization		2,877		3,579			-		84			6,540
Operating income (loss)	$	18,301	$	(2,079	)	$	-	$	(7,918	)	$	8,304

Equity in net loss of investee	$	-	$	2,717		$	-	$	-		$	2,717

Geographic Information

Domestic service revenue, net, totaled

82.0%

and

77.2%

of service revenue, net for the

three

months ended

March

31,

2017

and

2016,

respectively. Foreign service revenue, net, totaled

18.0%

and

22.8%

of service revenue, net for the

three

months ended

March

31,

2017

and

2016,

respectively.

March

31,

2017

and

December

31,

2016,

$82,862

and

$76,579,

respectively, of the Company’s net assets were located in countries outside of the U.S.