17. Segment Information

9 Months Ended

Sep. 30, 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;

a. 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.

b. Rehabilitation Services provided to customers, during the nine months ended September 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 nine months ended September 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 September 30, 2017
	Rental Operations	In-Patient services	Total
Revenue	$              83,837	$            564,461	$         648,298
Operating expenditure	158,808	398,160	556,968
Operating (loss) income	(74,971)	166,301	91,330
Other (expense) income
Other income	-	67,596	67,596
Interest expense	(38,714)	(47,657)	(86,371)
Amortization of debt discount	-	(13,052)	(13,052)
Loss on change in fair value of derivative liability	-	(19,329)	(19,329)
Foreign exchange movements	(18,320)	71,614	53,294
Net loss before taxation from continuing operations	(132,005)	225,473	93,468
Taxation	-	-	-
Net loss from continuing operations	$        (132,005)	$      225,473	$        93,468

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

	Nine months ended September 30, 2017
	Rental Operations	In-Patient services	Total
Revenue	$            203,962	$         1,169,066	$      1,373,028
Operating expenditure	294,673	1,635,041	1,929,714
Operating loss	(90,711)	(465,975)	(556,686)
Other (expense) income
Other income	-	635,904	635,904
Other expense	(373,274)	(19,264)	(392,538)
Interest income	-	32,074	32,074
Interest expense	(136,902)	(106,090)	(242,992)
Amortization of debt discount	-	(442,377)	(442,377)
Loss on change in fair value of derivative liability	-	75,203	75,203
Foreign exchange movements	(18,320)	(92,732)	(111,052)
Net loss before taxation from continuing operations	(619,207)	(383,257)	(1,002,464)
Taxation	-	-	-
Net loss from continuing operations	$        (619,207)	$        (383,257)	$    (1,002,464)

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		6,391			1,011,561			1,017,952
Non-current assets		7,825,234			7,174,787			15,000,021
Liabilities
Current liabilities		(2,333,270	)		(561,722	)		(2,894,992	)
Non-current liabilities		(4,311,464	)		(2,921,406	)		(7,232,870	)
Intercompany balances		(1,813,184	)		1,813,184			—
Net (liability) asset  position	$	(626,293	)	$	6,516,404		$	5,890,111