Segment Reporting

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

An operating segment is defined as a component of an enterprise for which discrete financial information is available and is reviewed regularly by the Chief Operating Decision Maker (“CODM”) to evaluate performance and make operating decisions. The Company has identified its CODM as the Chief Executive Officer.

The Company has two operating business segments and one non-operating business segment. The Corporate Clinics segment is composed of the operating activities of the company-owned or managed clinics. As of September 30, 2021, the Company operated or managed 83 clinics under this segment. The Franchise Operations segment is composed of the operating activities of the franchise business unit. As of September 30, 2021, the franchise system consisted of 583 clinics in operation. Corporate is a non-operating segment that develops and implements strategic initiatives and supports the Company’s two operating business segments by centralizing key administrative functions such as finance and treasury, information technology, insurance and risk

management, legal and human resources. Corporate also provides the necessary administrative functions to support the Company as a publicly-traded company. A portion of the expenses incurred by Corporate are allocated to the operating business segments.

The tables below present financial information for the Company’s two operating business segments.

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
Revenues:	2021		2020		2021		2020
Corporate clinics	$	11,634,009	$	8,403,844	$	32,537,942	$	22,554,946
Franchise operations	9,357,612		7,006,709		26,220,441		19,089,886
Total revenues	$	20,991,621	$	15,410,553	$	58,758,383	$	41,644,832
Depreciation and amortization:
Corporate clinics	1,538,251		636,734		3,879,786		1,828,643
Franchise operations	165,475		342		166,159		1,027
Corporate administration	(41,471)		77,212		229,195		232,267
Total depreciation and amortization	$	1,662,255	$	714,288	$	4,275,140	$	2,061,937
Segment operating income:
Corporate clinics	$	1,241,081	$	1,313,717	$	4,415,793	$	2,662,643
Franchise operations	4,156,829		3,404,723		11,887,071		8,778,537
Total segment operating income	$	5,397,910	$	4,718,440	$	16,302,864	$	11,441,180
Reconciliation of total segment operating income to consolidated earnings before income taxes:
Total segment operating income	$	5,397,910	$	4,718,440	$	16,302,864	$	11,441,180
Unallocated corporate	(4,059,032)		(3,013,084)		(10,957,559)		(8,723,890)
Consolidated income from operations	1,338,878		1,705,356		5,345,305		2,717,290
Other expense, net	16,139		25,667		54,050		55,248
Income before income tax benefit	$	1,322,739	$	1,679,689	$	5,291,255	$	2,662,042

Segment assets:	September 30, 2021		December 31, 2020
Corporate clinics	$	36,778,871	$	24,928,311
Franchise operations	12,257,569		9,744,375
Total segment assets	49,036,440		34,672,686
			(As Revised)
Unallocated cash and cash equivalents and restricted cash	19,992,282		20,819,629
Unallocated property and equipment	913,988		1,063,815
Other unallocated assets	11,036,188		9,257,153
Total assets	$	80,978,898	$	65,813,283

“Unallocated cash and cash equivalents and restricted cash” relates to corporate cash and cash equivalents and restricted cash (see Note 1), “unallocated property and equipment” relates primarily to corporate fixed assets, and “other unallocated assets” relates primarily to deposits, prepaid and other assets.