Segment Information

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Segment Information

16. 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 our Addiction Recovery Institute of America and Seastone of Delray operations.

The segment operating results of the reportable segments for the three months ended March 31, 2021 is disclosed as follows:

	Three months ended March 31, 2021
	Rental Operations			In-Patient services			Total
Revenue	$	90,793		$	—		$	90,793
Operating expenditure		(32,849	)		(19,167	)		(52,016	)
Operating income (loss)		57,944			(19,167	)		38,777
Other (expense) income
Loss on debt conversion		—			(1,106,648	)		(1,106,648	)
Penalty on convertible notes		—			(9,240	)		(9,240	)
Fair value of warrants granted					(976,788	)		(976,788	)
Fair value of warrants exercised					(90,000	)		(90,000	)
Interest expense		(59,745	)		(77,932	)		(137,677	)
Amortization of debt discount		—			(502,677	)		(502,677	)
Change in fair value of derivative liability		—			495,589			495,589
Foreign exchange movements		(18,695	)		(60,797	)		(79,492	)
Net loss before taxation		(20,496	)		(2,347,660	)		(2,368,156	)
Taxation		—			—			—
Net loss	$	(20,496	)	$	(2,347,660	)	$	(2,368,156	)

The operating assets and liabilities of the reportable segments as of March 31, 2021 is as follows:

	March 31, 2021
	Rental Operations			In-Patient services			Total
Purchase of fixed assets	$	—		$	—		$	—
Assets
Current assets		4,580			1,196,939			1,201,519
Non-current assets		2,885,861			5,157			2,891,018
Liabilities
Current liabilities		(1,484,968	)		(12,388,857	)		(13,873,825	)
Non-current liabilities		(4,645,209	)		—			(4,645,209	)
Mandatory redeemable preferred shares		—			(400,000	)		(400,000	)
Intercompany balances		1,330,423			(1,330,423	)		—
Net liability position	$	(1,909,313	)	$	(12,917,184	)	$	(14,826,497	)

The segment operating results of the reportable segments for the three months ended March 31, 2020 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	)

The operating assets and liabilities of the reportable segments as of March 31, 2020 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	)