Segment information

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Segment information

16.  Segment information

The Company had 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. In terms of an exchange agreement entered into with Leonite Capital effective June 30, 2023, the property owning subsidiary CCH was exchanged for the Series B preferred shares issued to Leonite Capital. Refer note 4 above.

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 is disclosed as follows:

	Nine months ended September 30, 2023
	Rental Operations			In-Patient services			Total
Revenue	$	180,522		$	4,039,382		$	4,219,904
Operating expenses		245,528			3,833,676			4,079,204
Operating (loss) income		(65,006	)		205,706			140,700
Other (expense) income
Forgiveness of intercompany loan		3,481,332			(3,481,332	)		—
Other income		—			449			449
Penalty on convertible notes		—			(34,688	)		(34,688	)
Extension fee on property purchase		—			(130,000	)		(130,000	)
Gain on disposal of property		—			2,484,172			2,484,172
Loss on debt extinguishment		—			(277,175	)		(277,175	)
Interest expense		(95,464	)		(286,984	)		(382,448	)
Amortization of debt discount		—			(238,304	)		(238,304	)
Foreign exchange movements		(81,033	)		(3,115	)		(84,148	)
Net income (loss) before taxes		3,239,829			(1,761,271	)		1,478,558
Taxes		—			221,107			221,107
Net income (loss)	$	3,239,829		$	(1,540,164	)	$	1,699,665

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

	September 30, 2023
	Rental Operations			In-Patient services			Total
Purchase of fixed assets	$	(43,611	)	$	5,287,622		$	5,244,011
Assets
Current assets		—			794,521			794,521
Non-current assets		—			11,213,407			11,213,407
Liabilities
Current liabilities		—			(7,713,189	)		(7,713,189	)
Non-current liabilities		—			(9,801,769	)		(9,801,769	)
Net liability position	$	—		$	(5,507,030	)	$	(5,507,030	)

The segment operating results of the reportable segments is disclosed as follows:

	Nine months ended September 30, 2022
	Rental Operations			In-Patient services			Total
Revenue	$	292,303		$	3,297,387		$	3,586,290
Operating expenses		(99,515	)		(3,105,091	)		(3,204,606	)
Operating income		192,788			188,896			381,684
Other (expense) income
Other income		—			10,018			10,018
Forgiveness of government assistance loan		—			104,368			104,368
Interest expense		(156,297	)		(210,880	)		(367,177	)
Amortization of debt discount		—			(551,738	)		(551,738	)
Derivative liability movement		—			175,593			175,593
Foreign exchange movements		116,635			385,715			502,350
Net income before taxes		153,126			101,972			255,098
Taxes		—			(87,615	)		(87,615	)
Net Income	$	153,126		$	14,357		$	167,483

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

	September 30, 2022
	Rental Operations			In-Patient services			Total
Purchase of fixed assets	$	—		$	285,103		$	285,103
Assets
Current assets		7,972			952,223			960,195
Non-current assets		2,469,499			3,299,226			5,768,725
Liabilities
Current liabilities		(4,974,475	)		(9,047,232	)		(14,021,707	)
Non-current liabilities		(603,557	)		(1,523,795	)		(2,127,352	)
Mandatory redeemable preferred shares		—			(400,000	)		(400,000	)
Intercompany balances		(1,263,485	)		1,263,485			—
Net liability position	$	(4,364,046	)	$	(8,131,754	)	$	(9,820,139	)