17. Segment Information

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

17. Segment Information

17. Segment Information

Due to the recent acquisition of the Cranberry Cove subsidiary on February 14, 2017, the Company has two reportable operating segments;

i. Rental income from the property owned by Cranberry Cove subsidiary located at 3571 Muskoka Road, #169, Bala, on which the operations of the Canadian Rehab Clinic were located prior to disposal on February 14, 2017 and subsequently leased to the purchasers of the business of the Canadian Rehab Clinic, for a period of 5 years renewable for a further three five year periods and with an option to acquire the property at a fixed price.

ii. Rehabilitation Services provided to customers, during the three months ended March 31, 2016, these services were provided to customers at our Canadian Rehab Clinic and for the three months ended March 31, 2017, these services are now provided through our Seastone of Delray business acquired on February 14, 2017. The Rehabilitation services for the three months ended March 31, 2016 are reported under discontinued operations and have not been reported as part of the Segment Information.

The segment operating results of the reportable segments are disclosed as follows:

	Rental Operations			In-Patient services			Total
Revenue	$	42,037		$	280,473		$	322,510
Operating expenditure		29,548			920,099			949,647
Operating income (loss)		12,489			(639,626	)		(627,137	)
Other income (expense)
Other income		—			504,348			504,348
Other expense		(1,519,874	)					(1,519,874	)
Interest income		—			32,074			32,074
Interest expense		(36,653	)		(26,364	)		(63,017	)
Amortization of debt discount		—			(187,659	)		(187,659	)
Loss on change in fair value of derivative liability		—			(73,048	)		(73,048	)
Foreign exchange movements		—			(157,908	)		(157,908	)
Net loss before taxation from continuing operations		(1,544,038	)		(548,183	)		(2,092,221	)
Taxation		—			—			—
Net loss from continuing operations	$	(1,544,038	)	$	(548,183	)	$	(2,092,221	)

The operating assets and liabilities of the reportable segments are as follows:

	Rental Operations			In-Patient services			Total
Purchase of fixed assets		—			8,878			8,878
Assets
Current assets		7,769			403,341			411,110
Non-current assets		2,887,063			10,647,294			13,534,357
Liabilities
Current liabilities		(5,175,717	)		(1,389,860	)		(6,565,577	)
Non-current liabilities		—			(2,997,500	)		(2,997,500	)
Intercompany balances		(88,544	)		88,544			—
Net (liability) asset  position		(2,369,429	)		6,751,819			4,382,390