Segment Reporting

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

SEGMENT REPORTING

NOTE 17 – SEGMENT REPORTING

The Company has four reportable segments: Health Services, Digital Healthcare, ACO/MCO and Medical Distribution. Health Services division is comprised of the operations of (i) Naples Women’s Center (“NWC”), a multi-specialty medical group including OB/GYN (both Obstetrics and Gynecology), and General Practice, (ii) Naples Center for Functional Medicine (“NCFM”), a Functional Medical Practice acquired in April 2019 that is engaged in improving the health of its patients through individualized and integrative health care, and (iii) Bridging the Gap Physical Therapy (“BTG”), a physical therapy practice in Bonita Springs, FL that provides hands-on functional manual therapy techniques to speed patients’ recovery and manage pain without pain medication or surgery. The Company’s Digital Healthcare segment develops and 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. The ACO/MSO Division is comprised of the business acquired with CHM, which assists physician practices in providing coordinated and more efficient care to patients via the MSSP as administered by the CMS, which rewards providers for efficiency in patient care. The Medical Distribution Division is comprised of the operations of MedOffice Direct LLC (“MOD”), a virtual distributor of discounted medical supplies selling to both consumers and medical practices throughout the United States acquired by the Company on October 19, 2020.

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, 2021 was as follows:

	Three Months Ended March 31, 2021
	Health Services		Digital Healthcare			ACO / MSO			Medical Distribution			Total
Revenue
Patient service revenue, net	$	1,514,376	$	—		$	—		$	—		$	1,514,376
Consulting and event revenue		—		11,113			76,542			—			87,655
Product revenue		—		—			—			182,663			182,663
Total revenue		1,514,376		11,113			76,542			182,663			1,784,694
Operating Expenses
Practice salaries and benefits		663,937		—			—			—			663,937
Other practice operating expenses		730,784		—			—			—			730,784
Medicare shared savings expenses		—		—			211,507			—			211,507
Cost of product revenue		—		—			—			168,596			168,596
Selling, general and administrative expenses		—		1,305,320			—			60,817			1,366,137
Depreciation and amortization		28,323		595			—			182,740			211,658
Total Operating Expenses		1,423,044		1,305,320			211,507			412,153			3,352,619
(Loss) income from operations	$	91,332	$	(1,294,802	)	$	(134,965	)	$	(229,490	)	$	(1,567,925	)
Other Segment Information
Interest expense	$	4,197	$	6,282		$	—		$	109		$	10,588
Loss on extinguishment of debt	$	—	$	5,589,994		$	—		$	—		$	5,589,994
Change in fair value of debt	$	—	$	19,246		$	—		$	—		$	19,246
Change in fair value of contingent acquisition consideration	$	—	$	635,700		$	—		$	—		$	635,700

	March 31, 2021
Identifiable assets	$	2,411,744	$	3,043,929	$	1,128,491	$	3,287,628	$	9,871,792
Goodwill	$	—	$	—	$	381,856	$	766,249	$	1,148,105

	December 31, 2020
Identifiable assets	$	2,120,714	$	192,568	$	1,115,148	$	3,450,013	$	6,878,443
Goodwill	$	—	$	—	$	381,856	$	766,249	$	1,148,105

Segment information for the three months ended March 31, 2020 was as follows:

	Three Months Ended March 31, 2020
	Health Services			Digital Healthcare			ACO / MSO		Medical Distribution		Total
Revenue
Patient service revenue, net	$	1,336,940		$	—		$	—	$	—	$	1,336,940
Consulting revenue		—			—			—		—		—
Product revenue		—			—			—		—		—
Total revenue		1,336,940			—			—		—		1,336,940
Operating Expenses
Practice salaries and benefits		765,121			—			—		—		765,121
Other practice operating expenses		563,691			—			—		—		563,691
Medicare shared savings expenses		—			—			—		—		—
Cost of product revenue		—			—			—		—		—
Selling, general and administrative expenses		—			510,976			—		—		510,976
Depreciation and amortization		24,191			595			—		—		24,786
Total Operating Expenses		1,353,003			511,571			—		—		1,864,574
Loss from operations	$	(16,063	)	$	(511,571	)	$	—	$	—	$	(527,634	)
Other Segment Information
Interest expense	$	5,536		$	56,645		$	—	$	—	$	62,181
Loss on extinguishment of debt	$	—		$	467,937		$	—	$	—	$	467,937
Amortization of original issue and debt discounts on convertible notes	$	—		$	292,163		$	—	$	—	$	292,163
Change in fair value of debt	$	—		$	(35,965	)	$	—	$	—	$	(35,965	)
Change in fair value of derivative financial instruments	$	—		$	(740,355	)	$	—	$	—	$	(740,355	)
Change in fair value of contingent acquisition consideration	$	—		$	6,621		$	—	$	—	$	6,621
Identifiable assets as of March 31, 2020	$	2,175,990		$	136,499		$	---	$	---	$	2,312,489

The Digital Healthcare segment recognized revenue of $180 and $1,356 in the three months ended March 31, 2021 and 2020, respectively, related to subscription revenue billed to and paid for by the Company’s physicians for access to the HealthLynked Network. The revenue for Digital Healthcare and related expense for Health Services were eliminated on consolidation.