Segment information

12 Months Ended

Dec. 31, 2022

Segment Information

Segment information

20. 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 year ended December 31, 2022 is disclosed as follows:

	Year ended December 31, 2022
	Rental Operations			In-Patient services			Total
Revenue	$	368,591		$	4,452,156		$	4,820,747
Operating expenses		129,427			4,202,203			4,331,630
Operating income		239,164			249,953			489,117
Other (expense) income
Other income		—			15,760			15,760
Forgiveness of government relief loan		—			104,368			104,368
Penalty on convertible notes		—			(60,075)			(60,075)
Interest income		—			78			78
Interest expense		(205,133	)		(383,344)			(588,477)
Amortization of debt discount		—			(624,683	)		(624,683	)
Foreign exchange movements		97,842			973,478			1,071,320
Net income before taxes		131,873			275,535			407,408
Taxes		—			(112,220	)		(112,220	)
Net income	$	131,873		$	163,315		$	295,188

The operating assets and liabilities of the reportable segments as of December 31, 2022 is as follows:

	December 31, 2022
	Rental Operations			In-Patient services			Total
Purchase of fixed assets	$	—		$	315,822		$	315,822
Assets
Current assets		2,615			540,281`			542,896
Non-current assets		2,469,190			3,551,208			6,020,398
Liabilities
Current liabilities		(4,973,187	)		(8,315,944	)		(13,289,131	)
Non-current liabilities		(622,635	)		(1,484,071	)		(2,106,706	)
Mandatory redeemable preferred shares		—			(400,000	)		(400,000	)
Intercompany balances		(1,420,438	)		1,420,438			—
Net liability position	$	(4,544,455	)	$	(4,688,088)		$	(9,232,543)

The segment operating results of the reportable segments for the year ended December 31, 2021 is disclosed as follows:

	Year ended December 31, 2021
	Rental Operations			In-Patient services			Total
Revenue	$	374,517		$	1,568,071		$	1,942,588
Operating expenses		128,183			1,812,300			1,940,483
Operating income (loss)		246,334			(244,229	)		2,105
Other (expense) income
Other income		—			273,373			273,373
Forgiveness of government relief loan		—			156,782			156,782
Loss on advance		—			(120,000	)		(120,000	)
Fair value of warrants granted to convertible debt holders		—			(854,140	)		(854,140	)
Penalty on convertible debt		—			(9,240	)		(9,240	)
Interest expense		(230,868	)		(598,657	)		(829,525	)
Amortization of debt discount		—			(1,965,551	)		(1,965,551	)
Derivative liability movement		—			1,526,191			1,526,191
Foreign exchange movements		(16,150	)		(18,151	)		(34,301	)
Net loss before taxes		(684	)		(1,853,622	)		(1,854,306	)
Taxes		—			280,903			280,903
Net loss	$	(684	)	$	(1,572,719	)	$	(1,573,403	)

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

	December 31, 2021
	Rental Operations			In-Patient services			Total
Purchase of fixed assets	$	—		$	132,832		$	132,832
Assets
Current assets		1,373			270,426			271,799
Non-current assets		2,766,175			3,516,332			6,282,507
Liabilities
Current liabilities		(5,401,423	)		(8,115,379	)		(13,516,802	)
Non-current liabilities		(693,502	)		(1,799,383	)		(2,492,885	)
Mandatory redeemable preferred shares		—			(400,000	)		(400,000	)
Intercompany balances		1,284,967			(1,284,967	)		—
Net liability position	$	(2,042,410	)	$	(7,812,971	)	$	(9,855,381	)