NOTE 13 – SEGMENT REPORTING

The Company has two reportable segments: NWC and HLYK. NWC is a multi-specialty medical group including OB/GYN (both Obstetrics and Gynecology), and General Practice. The practice’s office is located in Naples, Florida. HLYK plans to operate an online personal medical information and record archive system, the “HealthLynked Network”, which will enable patients and doctors to keep track of medical information via the Internet in a cloud based system. Patients will complete a detailed online personal medical history including past surgical history, medications, allergies, and family history. Once this information is entered patients and their treating physicians will be able to update the information as needed to provide a comprehensive medical history.

The Company evaluates performance and allocates resources based on profit or loss from operations before income taxes. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies.

Segment information for the three months ended March 31, 2018 and 2017 was as follows:

	Three Months Ended March 31, 2018								Three Months Ended March 31, 2017
	NWC		HLYK			Total			NWC			HLYK			Total
Revenue
Patient service revenue, net	$	645,639	$	---		$	645,639		$	476,118		$	---		$	476,118
Medicare incentives		---		---			---			---			---			---
Total revenue		645,639		---			645,639			476,118			---			476,118

Operating Expenses
Salaries and benefits		403,055		157,801			560,856			344,954			122,920			467,874
General and administrative		225,652		349,176			574,828			177,333			212,693			390,026
Depreciation and amortization		5,574		455			6,029			5,655			53			5,708
Total Operating Expenses		634,281		507,432			1,141,713			527,942			335,666			863,608

Loss from operations	$	11,358	$	(507,432	)	$	(496,074	)	$	(51,824	)	$	(335,666	)	$	(387,490	)

Other Segment Information
Interest expense	$	5,697	$	34,650		$	40,347		$	5,760		$	11,827		$	17,587
Loss on extinguishment of debt	$	---	$	312,096		$	312,096		$	---		$	---		$	---
Loss at inception of convertible notes payable	$	---	$	192,062		$	192,062		$	---		$	---		$	---
Amortization of original issue and debt discounts on convertible notes	$	---	$	154,835		$	154,835		$	---		$	72,044		$	72,044
Change in fair value of derivative financial instruments	$	---	$	(14,621	)	$	(14,621	)	$	---		$	---		$	---

		As of March 31, 2018												As of December 31, 2017 (audited)
Identifiable assets		$	272,810			$	151,246			$	424,056			$	248,255			$	108,267			$	356,522

During the three months ended March 31, 2018, HLYK recognized revenue of $6,888 related to subscription revenue billed to and paid for by NWC physicians for access to the HealthLynked Network, which the Company test-launched starting in the third quarter of 2017. The revenue for HLYK and related expense for NWC were eliminated on consolidation.