Segment Information

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Segment Information

15. 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:

	Six months ended June 30, 2020
	Rental Operations			In-Patient services			Total
Revenue	$	165,843		$	—		$	165,843
Operating expenditure		63,165			209,777			272,942
Operating income (loss)		102,678			(209,777	)		(107,099	)
Other (expense) income
Interest income		—			628			628
Gain on debt extinguishment		—			12,683,678			12,683,678
Loss on debt conversion		—			(312,836	)		(312,836	)
Exercise of warrants		—			(95,868	)		(95,868	)
Interest expense		(120,903	)		(247,109	)		(368,012	)
Amortization of debt discount		—			(529,690	)		(529,690	)
Change in fair value of derivative liability		—			(12,792,570	)		(12,792,570	)
Foreign exchange movements		29,982			193,380			223,362
Net income (loss) before taxation		11,757			(1,310,164	)		(1,298,407	)
Taxation		—			—			—
Net income (loss)	$	11,757		$	(1,310,164	)	$	(1,298,407	)

	Six months ended June 30, 2019
	Rental Operations			In-Patient services			Total
Revenue	$	164,476		$	15,725		$	180,201
Operating expenses		74,229			2,895,607			2,969,836
Operating income (loss)		90,247			(2,879,882	)		(2,789,635	)
Other (expense) income
Interest income		—			15,262			15,262
Loss on disposal of property		—			(692,488	)		(692,488	)
Bonus shares issued to investors		—			(143,500	)		(143,500	)
Interest expense		(82,046	)		(460,091	)		(542,137	)
Amortization of debt discount		—			(1,590,255	)		(1,590,255	)
Loss on change in fair value of derivative liability		—			1,254,871			1,254,871
Foreign exchange movements		(45,296	)		(226,654	)		(271,950	)
Net loss before taxation		(37,095	)		(4,722,737	)		(4,759,832	)
Taxation		—			—			—
Net loss from operations	$	(37,095	)	$	(4,722,737	)	$	(4,759,832	)

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

	June 30, 2020
	Rental Operations			In-Patient services			Total
Purchase of fixed assets	$	—		$	—		$	—
Assets
Current assets		3,097			238,888			241,985
Non-current assets		2,757,169			—			2,757,169
Liabilities
Current liabilities		(1,144,270	)		(17,170,833	)		(18,315,103	)
Non-current liabilities		(3,644,566	)		(781,945	)		(4,426,511	)
Intercompany balances		(1,444,989	)		1,444,989			—
Net liability position	$	(3,473,559	)	$	(16,268,901	)	$	(19,742,460	)

	June 30, 2019
	Rental Operations			In-Patient services			Total
Purchase of fixed assets	$	—		$	22,868		$	22,868
Assets
Current assets		9,630			558,680			568,310
Non-current assets		2,916,346			20,509,941			23,426,287
Liabilities
Current liabilities		(2,075,136	)		(12,906,053	)		(14,981,189	)
Non-current liabilities		(4,016,852	)		(14,713,974	)		(18,730,826	)
Intercompany balances		719,954			(719,954	)		—
Net liability position	$	(2,446,058	)	$	(7,271,360	)	$	(9,717,418	)