Segment information

12 Months Ended

Dec. 31, 2024

Segment Reporting [Abstract]

Segment information

17. Segment information

The Company operates and manages its business as one reportable and operating segment, since the disposal of CCH on June 30, 2023, the Company only provides rehabilitation services to customers, these services are provided to customers at its Evernia, Addiction Recovery Institute of America facility.

Prior to that date, the Company had two reportable segments and also derived rental income from the property owned by its CCH subsidiary.

The Company’s CODM reviews financial information presented and decides how to allocate resources based on net operating income (loss). Net income (loss) is used for evaluating financial performance.

Significant segment expenses include Salaries and wages, rent expense, professional fees, management fees, food expenses, marketing and advertising expenses, insurance expenses and depreciation and amortization expenses. Other operating expenses include all remaining costs necessary to operate our business, which primarily include other administrative expenses. The following table presents the significant segment expenses and other segment items regularly reviewed by our CODM:

The segment operating results of the one reportable segment for the year ended December 31, 2024 is disclosed as follows:

		Year ended December 31, 2024
		In Patient Services
Revenue	$		6,017,204
Salaries and wages			3,072,654
Rent expense			1,304,127
Professional fees			955,801
Management fees			—
Food expenses			308,660
Marketing and advertising expenses			371,229
Insurance expenses			146,357
Depreciation and amortization expense			466,952
Other operating expenses			724,553
Operating loss			(1,333,129	)
Other (expense) income
Other income			110,000
Other expense			(1,160	)
Interest income			2,292
Interest expense			(565,343	)
Amortization of debt discount			(416,120	)
Foreign exchange movements			37,523
Net (loss) before income taxes	$		(2,165,937	)

The segment operating results of the reportable segments for the year ended December 31, 2023 is disclosed as follows:

	Year ended December 31, 2023
	Rental Operations			In-Patient services			Total
Revenue	$	180,522		$	5,164,454		$	5,344,976
Salaries and wages		—			2,656,267			2,656,267
Rent expense		—			614,793			614,793
Professional fees		—			707,413			707,413
Management fees		185,503			182,500			368,003
Food expenses		—			260,921			260,921
Marketing and advertising expenses		—			142,462			142,462
Insurance expenses		—			150,478			150,478
Depreciation and amortization expense		59,921			438,998			498,919
Other operating expenses		103			487,537			487,640
Operating loss		(65,005	)		(476,915	)		(541,920	)
Other (expense) income
Intercompany gain (loss) on debt forgiveness		3,481,332			(3,481,332	)		—
Gain on disposal of property		—			2,484,172			2,484,172
Loss on debt extinguishment		—			(277,175	)		(277,175	)
Extension fee on property purchase		—			(140,000	)		(140,000	)
Penalty on convertible notes		—			(34,688	)		(34,688	)
Interest income		—			676			676
Interest expense		(95,464	)		(404,762	)		(500,226	)
Amortization of debt discount		—			(281,354	)		(281,354	)
Foreign exchange movements		(81,033	)		(13,999	)		(95,032	)
Net income (loss) before taxes	$	3,239,830		$	(2,625,377	)	$	614,453