Segment information

6 Months Ended

Jun. 30, 2022

Segment Information

Segment information

19. 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 Evernia, Addiction Recovery Institute of America and Seastone of Delray operations.

The segment operating results of the reportable segments for the six months ended June 30, 2022 is disclosed as follows:

	Six months ended June 30, 2022
	Rental Operations			In-Patient services			Total
Revenue	$	188,045		$	1,973,302		$	2,161,347
Operating expenses		(63,922	)		(1,970,723	)		(2,034,645	)
Operating income		124,123			2,579			126,702
Other (expense) income
Other income		—			11,063			11,063
Interest expense		(103,687	)		(99,929	)		(203,616	)
Amortization of debt discount		—			(464,034	)		(464,034	)
Derivative liability movement		—			130,437			130,437
Foreign exchange movements		22,524			75,288			97,812
Net income (loss) before taxes		42,960			(344,596	)		(301,636	)
Taxes		—			(42,963	)		(42,963	)
Net Income (loss)	$	42,960		$	(387,559	)	$	(344,599	)

The operating assets and liabilities of the reportable segments as of June 30, 2022 is as follows:

	June 30, 2022
	Rental Operations			In-Patient services			Total
Purchase of fixed assets	$	—		$	213,726		$	213,726
Assets
Current assets		700			474,255			474,955
Non-current assets		2,658,399			3,399,511			6,057,910
Liabilities
Current liabilities		(5,315,731	)		(8,707,761	)		(14,023,492	)
Non-current liabilities		(629,594	)		(1,617,452	)		(2,247,046	)
Mandatory redeemable preferred shares		—			(400,000	)		(400,000	)
Intercompany balances		1,280,307			(1,280,307	)		—
Net liability position	$	(2,005,919	)	$	(8,131,754	)	$	(10,137,673	)

The segment operating results of the reportable segments for the six months ended June 30, 2021 is disclosed as follows:

	Six months ended June 30, 2021
	Rental Operations			In-Patient services			Total
Revenue	$	186,951		$	—		$	186,951
Operating expenditure		(66,704	)		(15,926	)		(82,630	)
Operating income (loss)		120,247			(15,926	)		104,321
Other (expense) income
Penalty on convertible debt		—			(9,240	)		(9,240	)
Loss on advance		—			(120,000	)		(120,000	)
Warrant exercise		—			(176,824	)		(176,824	)
Fair value of warrants granted to convertible debt holders		—			(976,788	)		(976,788	)
Interest expense		(118,784	)		(619,204	)		(737,988	)
Amortization of debt discount		—			(1,350,542	)		(1,350,542	)
Derivative liability movement		—			(1,546,795	)		(1,546,795	)
Foreign exchange movements		(48,418	)		(132,320	)		(180,738	)
Net loss before taxation		(46,955	)		(4,947,639	)		(4,994,594	)
Taxation		—			—			—
Net loss	$	(46,955	)	$	(4,947,639	)	$	(4,994,594	)

The operating assets and liabilities of the reportable segments as of June 30, 2021 is as follows:

	June 30, 2021
	Rental Operations			In-Patient services			Total
Purchase of fixed assets	$	—		$	—		$	—
Assets
Current assets		11,607			1,281,003			1,292,610
Non-current assets		2,895,190			5,233			2,900,423
Liabilities
Current liabilities		(1,630,035	)		(12,905,998	)		(14,536,033	)
Non-current liabilities		(4,569,711	)		—			(4,569,711	)
Mandatory redeemable preferred shares		—			(400,000	)		(400,000	)
Intercompany balances		1,219,704			(1,219,704	)		—
Net liability position	$	(2,073,245	)	$	(13,239,466	)	$	(15,312,711	)