Segmental information

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Segmental information

17. Segmental information

The Company has two reportable operating segments: 

a. Rental income from the property owned by CCH 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, these services were provided to customers at our Addiction Recovery Institute of America and Seastone of Delray operations. The Rehabilitation services provided by our Canadian Rehab Center for the years ended December 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: 

	Year ended December 31, 2018
	Rental Operations			In-Patient services			Total
Revenue	$	331,001		$	101,514		$	432,515
Operating expenditure		157,841			3,158,991			3,316,832
Operating income (loss)		173,160			(3,057,477	)		(2,884,317	)
Other (expense) income
Other income		—			6,009			6,009
Other expense		—			(8,000	)		(8,000	)
Interest income		—			5,334			5,334
Interest expense		(178,220	)		(518,724	)		(696,944	)
Amortization of debt discount		—			(4,504,007	)		(4,504,007	)
Loss on change in fair value of derivative liability		—			(422,539	)		(422,539	)
Foreign exchange movements		78,177			349,876			428,053
Net income (loss) before taxation from continuing operations		73,117			(8,149,528	)		(8,076,411	)
Taxation		—			—			—
Net income (loss) from continuing operations	$	73,117		$	(8,149,528	)	$	(8,076,411	)

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

	December 31, 2018
	Rental Operations			In-Patient services			Total
Purchase of fixed assets		46,667			273,450			320,117
Assets
Current assets		1,460			406,388			407,848
Non-current assets		2,855,981			9,405,280			12,261,261
Liabilities
Current liabilities		(2,028,940	)		(11,648,776	)		(13,677,716	)
Non-current liabilities		(3,924,836	)		(2,782,510	)		(6,707,346	)
Intercompany balances		788,944			(788,944	)		—
Net liability position		(2,307,391	)		(5,408,562	)		(7,715,953	)

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

	Year ended December 31, 2017
	Rental Operations			In-Patient services			Total
Revenue	$	291,583		$	637,833		$	929,416
Operating expenditure		195,529			2,187,044			2,382,573
Operating income (loss)		96,054			(1,549,211	)		(1,453,157	)
Other (expense) income
Other income		—			475,487			475,487
Other expense		—			(5,093,9541	)		(5,093,954	)
Interest income		—			32,074			32,074
Interest expense		(179,037	)		(188,510	)		(367,547	)
Amortization of debt discount		—			(668,916	)		(668,916	)
Loss on change in fair value of derivative liability		—			(1,033,332	)		(1,033,332	)
Foreign exchange movements		(12,003	)		(69,028	)		(81,031	)
Net loss before taxation from continuing operations		(94,986	)		(8,095,390	)		(8,190,376	)
Taxation		—			—			—
Net loss from continuing operations	$	(94,986	)	$	(8,095,390	)	$	(8,190,376	)

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

	December 31, 2017
	Rental Operations			In-Patient services			Total
Purchase of fixed assets		219,751			21,763			241,514
Assets
Current assets		201			334,418			334,619
Non-current assets		3,182,638			8,751,171			11,933,809
Liabilities
Current liabilities		(2,209,462	)		(4,650,716	)		(6,860,178	)
Non-current liabilities		(4,349,208	)		(2,834,684	)		(7,183,892	)
Intercompany balances		(791,263	)		791,263			—
Net (liability) asset position		(4,167,094	)		2,391,452			(1,775,642	)