Segment Information

9 Months Ended

Sep. 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:

	Nine months ended September 30, 2020
	Rental Operations			In-Patient services			Total
Revenue	$	255,672		$	—		$	255,672
Operating expenditure		103,606			286,612			390,218
Operating income (loss)		152,066			(286,612	)		(134,546	)
Other (expense) income
Interest income		—			629			629
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		(185,370	)		(307,614	)		(492,984	)
Amortization of debt discount		—			(628,892	)		(628,892	)
Change in fair value of derivative liability		—			(22,634,549	)		(22,634,549
Foreign exchange movements		(11,318	)		93,869	)		82,551
Net loss before taxation		(44,622	)		(11,488,195	)		(11,532,817	)
Taxation		—			—			—
Net loss	$	(44,622	)	$	(11,488,195	)	$	(11,523,817	)

	Nine months ended September 30, 2019
	Rental Operations			In-Patient services			Total
Revenue	$	248,019		$	80,225		$	328,244
Operating expenses		106,393			4,021,917			4,128,310
Operating income (loss)		141,626			(3,941,692	)		(3,800,066	)
Other (expense) income
Other income		—			6,600			6,600
Other expense		—			(11,729	)		(11,729	)
Interest income		—			15,313			15,313
Loss on disposal of property		—			(692,488	)		(692,488	)
Bonus shares issued to investors		—			(143,500	)		(143,500	)
Interest expense		(165,614	)		(675,546	)		(841,160	)
Amortization of debt discount		—			(2,564,338	)		(2,564,338	)
Loss on change in fair value of derivative liability		—			3,130,273			3,130,273
Foreign exchange movements		(25,752	)		(186,215	)		(211,967	)
Net loss before taxation		(49,740	)		(5,063,322	)		(5,113,062	)
Taxation		—			—			—
Net loss from operations	$	(49,740	)	$	(5,063,322	)	$	(5,113,062	)

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

	September 30, 2020
	Rental Operations			In-Patient services			Total
Purchase of fixed assets	$	—		$	—		$	—
Assets
Current assets		3,634			463,893			467,527
Non-current assets		2,786,415			—			2,786,415
Liabilities
Current liabilities		(1,361,264	)		(27,474,669	)		(28,835,933	)
Non-current liabilities		(4,365,109	)		—			(4,365,109	)
Intercompany balances		1,275,437			(1,275,437	)		—
Net liability position	$	(1,660,887	)	$	(28,286,213	)	$	(29,947,100	)

	September 30, 2019
	Rental Operations			In-Patient services			Total
Purchase of fixed assets		—			22,868			22,868
Assets
Current assets		3,480			397,068			400,548
Non-current assets		2,852,070			20,215,934			23,068,004
Liabilities
Current liabilities		(1,306,190	)		(12,921,036	)		(14,227,226	)
Non-current liabilities		(4,741,441	)		(14,459,976	)		(19,201,417	)
Intercompany balances		765,246			(765,246	)		—
Net liability position		(2,426,835	)		(7,533,256	)		(9,960,091	)