Segment Reporting

6 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

SEGMENT REPORTING

NOTE 15 – SEGMENT REPORTING

As of June 30, 2024, the Company had three reportable segments: Health Services, Digital Healthcare, and Medical Distribution. The Health Services Division is comprised of the operations of (i) NWC, a multi-specialty medical group including OB/GYN (both Obstetrics and Gynecology), and General Practice, (ii) 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, (iii) BTG, a physical therapy practice in Bonita Springs, Florida that provides hands-on functional manual therapy techniques to speed patients’ recovery and manage pain without pain medication or surgery, and (iv) AEU, a patient service facility specializing in minimally and non-invasive cosmetic services acquired by the Company in May 2022. The 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 Medical Distribution Division is comprised of the operations of MOD, a virtual distributor of discounted medical supplies selling to both consumers and medical practices throughout the United States.

On January 17, 2023, the Company entered into the AHP Merger Agreement pursuant to which the Company sold AHP and discontinued the operations of CHM, comprising its ACO/MSO Division. The Company has classified the results of the ACO/MSO Division as discontinued operations in the accompanying consolidated statement of operations for all periods presented. See Note 4, “Discontinued Operations,” for additional information.

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 June 30, 2024 was as follows:

	Three Months Ended June 30, 2024
	Health Services			Digital Healthcare			Medical Distribution			Total
Revenue
Patient service revenue, net	$	763,163		$	—		$	—		$	763,163
Subscription revenue		—			8,166			—			8,166
Product revenue		—			—			23,749			23,749
Total revenue		763,163			8,166			23,749			795,078
Operating Expenses
Practice salaries and benefits		513,891			—			—			513,891
Other practice operating expenses		389,222			—			—			389,222
Cost of product revenue		—			—			24,723			24,723
Selling, general and administrative expenses		—			842,524			18,945			861,469
Depreciation and amortization		83,922			1,340			—			85,262
Total Operating Expenses		987,035			843,864			43,668			1,874,567
(Loss) income from operations	$	(223,872	)	$	(835,698	)	$	(19,919	)	$	(1,079,489	)
Other Segment Information
Loss on extinguishment of debt	$	—		$	73,567		$	—		$	73,567
Change in fair value of debt	$	—		$	(27,900	)	$	—		$	(27,900	)
Amortization of original issue discounts on notes payable	$	—		$	371,356		$	—		$	371,356
Change in fair value of contingent acquisition consideration	$	—		$	(635	)	$	—		$	(635	)
Interest expense (income)	$	4,567		$	39,992		$	—		$	44,559

Segment information for the six months ended June 30, 2024 was as follows:

	Six Months ended June 30, 2024
	Health Services			Digital Healthcare			Medical Distribution			Total
Revenue
Patient service revenue, net	$	1,726,784		$	—		$	—		$	1,726,784
Subscription revenue		—			15,794			—			15,794
Product and other revenue		—			—			56,732			56,732
Total revenue		1,726,784			15,794			56,732			1,799,310
Operating Expenses
Practice salaries and benefits		1,097,047			—			—			1,097,047
Other practice operating expenses		871,805			—			—			871,805
Cost of product revenue		—			—			55,302			55,302
Selling, general and administrative expenses		—			1,822,698			38,214			1,860,912
Depreciation and amortization		169,091			2,680			—			171,771
Total Operating Expenses		2,137,943			1,825,378			93,516			4,056,837
Income (loss) from operations	$	(411,159	)	$	(1,809,584	)	$	(36,784	)	$	(2,257,527	)
Other Segment Information
Loss on extinguishment of debt	$	—		$	170,227		$	—		$	170,227
Change in fair value of debt	$	—		$	(27,900	)	$	—		$	(27,900	)
Amortization of original issue discounts on notes payable	$	—		$	479,621		$	—		$	479,621
Change in fair value of contingent acquisition consideration	$	—		$	(711	)	$	—		$	(711	)
Interest expense	$	5,517		$	43,873		$	—		$	49,390
Identifiable Assets
Identifiable assets as of June 30, 2024	$	1,554,359		$	2,285,209		$	20,096		$	3,859,664
Identifiable assets as of December 31, 2023	$	1,812,609		$	2,457,849		$	9,682		$	4,280,140

Segment information for the three months ended June 30, 2023 was as follows:

	Three Months Ended June 30, 2023
	Health Services			Digital Healthcare			Medical Distribution			Total
Revenue
Patient service revenue, net	$	1,630,334		$	—		$	—		$	1,630,334
Subscription revenue		—			19,177			—			19,177
Product revenue		—			—			53,985			53,985
Total revenue		1,630,334			19,177			53,985			1,703,496
Operating Expenses
Practice salaries and benefits		898,992			—			—			898,992
Other practice operating expenses		646,216			—			—			646,216
Cost of product revenue		—			—			34,397			34,397
Selling, general and administrative expenses		—			803,012			30,677			833,689
Depreciation and amortization		86,887			1,406			—			88,293
Total Operating Expenses		1,632,095			804,418			65,074			2,501,587
Loss from operations	$	(1,761	)	$	(785,241	)	$	(11,089	)	$	(798,091	)
Other Segment Information
Loss on extinguishment of debt	$	—		$	44,169		$	—		$	44,169
Amortization of original issue discounts on notes payable	$	—		$	128,689		$	—		$	128,689
Gain from realization of contingent sale consideration receivable	$	—		$	(15,000	)	$	—		$	(15,000	)
Change in fair value of contingent acquisition consideration	$	—		$	(6,070	)	$	—			(6,070	)
Interest expense (income)	$	4,191		$	34,933		$	—		$	39,124

Segment information for the six months ended June 30, 2023 was as follows:

	Six Months Ended June 30, 2023
	Health Services		Digital Healthcare			Medical Distribution			Total
Revenue
Patient service revenue, net	$	3,330,615	$	—		$	—		$	3,330,615
Subscription revenue		—		35,476			—			35,476
Product and other revenue		—		—			92,559			92,559
Total revenue		3,330,615		35,476			92,559			3,458,650
Operating Expenses
Practice salaries and benefits		1,862,649		—			—			1,862,649
Other practice operating expenses		1,270,463		—			—			1,270,463
Cost of product revenue		—		—			66,457			66,457
Selling, general and administrative expenses		—		1,873,333			64,104			1,937,437
Depreciation and amortization		173,559		2,811			—			176,370
Total Operating Expenses		3,306,671		1,876,144			130,561			5,313,376
Income (loss) from operations	$	23,944	$	(1,840,668	)	$	(38,002	)	$	(1,854,726	)
Other Segment Information
Loss on extinguishment of debt	$	—	$	88,932		$	—		$	88,932
Amortization of original issue discounts on notes payable	$	3,988	$	188,061		$	—		$	192,049
Gain from realization of contingent sale consideration receivable	$	—	$	15,000		$	—		$	15,000
Change in fair value of contingent acquisition consideration	$	—	$	(4,364	)	$	—		$	(4,364	)
Interest expense (income)	$	7,003	$	43,502		$	—		$	50,505
Identifiable Assets
Identifiable assets as of June 30, 2023	$	2,061,059	$	3,121,024		$	23,075		$	5,205,158
Goodwill as of June 30, 2023	$	319,958	$	—		$	—		$	319,958

The Digital Healthcare made intercompany sales of $336 and $120 in the three months ended June 30, 2024 and 2023, respectively, and $516 and $300 in the six months ended June 30, 2024 and 2023, respectively, related to subscription revenue billed to and paid for by the Company’s physicians for access to the HealthLynked Network. The Medical Distribution segment made intercompany sales of $-0- and $5,013 in the three months ended June 30, 2024 and 2023, respectively, and $-0- and $13,353 in the six months ended June 30, 2024 and 2023, respectively, related to medical products sold to practices in the Company’s Health Services segment. Intercompany revenue and the related costs are eliminated on consolidation.