Segment Information

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Segment Information

13. Segment 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 the Company’s ARIA and Seastone of Delray operations.

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

	Three months ended March 31, 2020
	Rental Operations			In-Patient services			Total
Revenue	$	83,542		$	-		$	83,542
Operating expenditure		30,300			143,849			174,149
Operating income (loss)		53,242			(143,849	)		(90,607	)
Other (expense) income
Other income
Loss on conversion of convertible notes		-			(286,343	)		(286,343	)
Exercise of warrants		-			(92,952	)		(92,952	)
Interest income		-			60			60
Interest expense		(61,398	)		(132,524	)		(193,922	)
Amortization of debt discount		-			(403,677	)		(403,677	)
Change in fair value of derivative liability		-			(9,754,896	)		(9,754,896	)
Foreign exchange movements		71,619			412,432			484,051
Net income (loss) before taxation		63,463			(10,401,749	)		(10,338,286	)
Taxation		-			-			-
Net income (loss)	$	63,463		$	(10,401,749	)	$	(10,338,286	)

	Three months ended March 31, 2019
	Rental Operations			In-Patient services			Total
Revenue	$	82,015		$	—		$	82,015
Operating expenses		37,358			1,439,155			1,476,513
Operating income (loss)		44,657			(1,439,155	)		(1,394,498	)
Other (expense) income
Interest income		—			15,277			15,277
Interest expense		(41,512	)		(303,586	)		(345,098	)
Amortization of debt discount		—			(761,942	)		(761,942	)
Loss on change in fair value of derivative liability		—			(473,301	)		(473,301	)
Foreign exchange movements		(19,291	)		(109,827	)		(129,118	)
Net loss before taxation		(16,146	)		(3,072,534	)		(3,088,680	)
Taxation		—			—			—
Net loss	$	(16,146	)	$	(3,072,534	)	$	(3,088,680	)

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

	March 31, 2020
	Rental Operations			In-Patient services			Total
Purchase of fixed assets		—			—			—
Assets
Current assets		2,883			208,793			211,676
Non-current assets		2,677,198			—			2,677,198
Liabilities
Current liabilities		(1,149,279	)		(27,237,487	)		(28,386,766	)
Non-current liabilities		(3,526,779	)		(730,235	)		(4,257,014	)
Intercompany balances		(704,122	)		704,122			—
Net liability position		(2,700,099	)		(27,054,807	)		(29,754,906	)

	March 31, 2019
	Rental Operations			In-Patient services			Total
Purchase of fixed assets		—			8,176			8,176
Assets
Current assets		471			2,388,629			2,389,100
Non-current assets		2,885,893			23,004,453			25,890,346
Liabilities
Current liabilities		(2,117,691	)		(17,117,309	)		(19,235,000	)
Non-current liabilities		(3,877,763	)		(15,048,675	)		(18,926,438	)
Intercompany balances		737,461			(737,461	)		—
Net liability position		(2,371,629	)		(7,510,363	)		(9,881,992	)