Segment Information

6 Months Ended

Jun. 30, 2017

Notes to Financial Statements

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 six months ended June 30, 2017, these services were provided to customers at our Seastone of Delray business acquired on February 14, 2017. The Rehabilitation services provided by our Canadian Rehab Center for the six months ended June 30, 2017 and 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: 

	Three months ended June 30, 2017
	Rental Operations			In-Patient services			Total
Revenue	$	78,088		$	324,132		$	402,220
Operating expenditure		106,317			316,782			423,099
Operating (loss) income		(28,229	)		7,350			(20,879	)
Other income (expense)
Other income		—			63,960			63,960
Other expense		1,146,600			(19,265	)		1,127,335
Interest income		—			—			—
Interest expense		(61,535	)		(32,068	)		(93,603	)
Amortization of debt discount		—			(241,666	)		(241,666	)
Derivative liability movement		—			167,580			167,580
Foreign exchange movements		—			(6,438	)		(6,438	)
Net income (loss) before taxation		1,056,836			(60,547	)		996,289
Taxation		—			—			—
Net income (loss)	$	1,056,036		$	(60,547	)	$	996,289

	Six months ended June 30, 2017
	Rental			In-Patient
	Operations			services			Total
Revenue	$	120,125		$	604,605		$	724,730
Operating expenditure		135,865			1,236,882			1,372,747
Operating loss		(15,740	)		(632,277	)		(648,017	)
Other (expense) income
Other income		—			568,309			568,309
Other expense		(373,274	)		(19,265	)		(392,539	)
Interest income		—			32,074			32,074
Interest expense		(98,188	)		(58,432	)		(156,620	)
Amortization of debt discount		—			(429,325	)		(429,325	)
Derivative liability movement		—			94,532			94,532
Foreign exchange movements		—			(164,347	)		(164,347	)
Net loss before taxation		(487,202	)		(608,731	)		(1,095,933	)
Taxation		—			—			—
Net loss	$	(487,202	)	$	(608,731	)	$	(1,095,933	)

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		4,795				593,202			597,997
Non-current assets		7,604,277				7,130,340			14,734,617
Liabilities
Current liabilities		(5,389,542		)		(1,557,380	)		(6,946,922	)
Non-current liabilities		—				(2,989,937	)		(2,989,937	)
Intercompany balances		150,644				(150,644	)		—
Net asset position	$	2,370,174			$	3,025,581		$	5,395,755