Segmental Information

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Segmental Information

15. Segment information

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 three months ended March 31, 2018, 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 three months ended March 31, 2017 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, 2018
	Rental Operations			In-Patient services			Total
Revenues	$	83,031		$	(16,337	)	$	66,694
Operating expenses		45,102			750,366			795,468
Operating income (loss)		37,929			(766,703	)		(728,774	)
Other (expense) income
Interest income		—			(49	)		(49	)
Interest expense		(42,845	)		(133,742	)		(176,587	)
Amortization of debt discount		—			(1,339,885	)		(1,339,885	)
Loss on change in fair value of derivative liability		—			(796,795	)		(796,795	)
Foreign exchange movements		18,345			92,283			110,628
Net income (loss) before taxation from continuing operations		13,429			(2,944,891	)		(2,931,462	)
Taxation		—			—			—
Net income (loss) from continuing operations	$	13,429		$	(2,944,891	)	$	(2,931,462	)

	Three months ended June 30, 2017
	Rental Operations			In-Patient services			Total
Revenues	$	78,088		$	324,132		$	402,220
Operating expenses		54,875			316,782			371,657
Operating income		23,213			7,350			30,563
Other (expense) income
Other income		—			1,000			1,000
Other expense		—			(19,265	)		(19,265	)
Interest expense		(61,535	)		(32,068	)		(93,603	)
Amortization of debt discount		—			(241,666	)		(241,666	)
Loss on change in fair value of derivative liability		—			167,580			167,580
Foreign exchange movements		—			(6,438	)		(6,438	)
Net loss before taxation from continuing operations		(38,322	)		(123,507	)		(161,829	)
Taxation		—			—			—
Net loss from continuing operations	$	(38,322	)	$	(123,507	)	$	(161,829	)

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

	Six months ended June 30, 2018
	Rental Operations			In-Patient services			Total
Revenues	$	167,143		$	12,853		$	179,996
Operating expenses		76,504			1,250,811			1,327,315
Operating income (loss)		90,639			(1,237,958	)		(1,147,319	)
Other (expense) income
Interest income		—			—			—
Interest expense		(92,895	)		(254,143	)		(347,038	)
Amortization of debt discount		—			(2,092,834	)		(2,092,834	)
Loss on change in fair value of derivative liability		—			(808,951	)		(808,951	)
Foreign exchange movements		47,555			200,969			248,524
Net income (loss) before taxation from continuing operations		45,299			(4,192,917	)		(4,147,618	)
Taxation		—			—			—
Net income (loss) from continuing operations	$	45,299		$	(4,192,917	)	$	(4,147,618	)

	Six months ended June 30, 2017
	Rental Operations			In-Patient services			Total
Revenues	$	120,125		$	604,605		$	724,730
Operating expenses		60,953			1,236,882			1,297,835
Operating income (loss)		59,172			(632,277	)		(573,105	)
Other (expense) income
Other income		—			473,369			473,369
Other expense		(5,074,689	)		(19,265	)		(5,093,954	)
Interest income		—			32,074			32,074
Interest expense		(98,188	)		(58,432	)		(156,620	)
Amortization of debt discount		—			(429,325	)		(429,325	)
Loss on change in fair value of derivative liability		—			94,532			94,532
Foreign exchange movements		—			(164,347	)		(164,347	)
Net loss before taxation from continuing operations		(5,113,705	)		(703,671	)		(5,817,376	)
Taxation		—			—			—
Net loss from continuing operations	$	(5,113,705	)	$	(703,671	)	$	(5,817,376	)

The operating assets and liabilities of the reportable segments at June 30, 2018, are as follows:

	Rental Operations			In-Patient services			Total
Purchase of fixed assets	$	30,860		$	10,750		$	41,610
Assets
Current assets		(11,055	)		480,068			469,013
Non-current assets		3,002,860			9,279,083			12,281,943
Liabilities
Current liabilities		(2,177,320	)		(8,400,534	)		(10,577,854	)
Non-current liabilities		(4,016,836	)		(2,913,724)			(6,930,560	)
Intercompany balances		(771,823	)		771,823			—
Net (liability) asset  position	$	(3,974,174	)	$	(783,284	)	$	(4,757,458	)