| BUSINESS SEGMENTS |
Note 13 BUSINESS SEGMENTS
The Company manages and classifies its business into
two reportable business segments: (i) Healthcare and (ii) Labs and Life
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Healthcare - The Company’s healthcare segment began with the acquisition of Myrtle on June 14, 2024 and includes RCHI, which was acquired on September 10, 2024. Each of these acquisitions is more fully discussed in Note 5. Myrtle offers behavioral health services, primarily substance use disorder treatments and services that are provided on either an inpatient, residential basis or an outpatient basis. RCHI’s hospital, BSF, has 25 inpatient beds, and a 24/7 emergency department and provides ancillary services, including laboratory, radiology, respiratory and pharmacy services. BSF is designated as a Critical Access Hospital (rural) hospital. |
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Labs and Life - The Company’s Labs and Life segment is commercializing proprietary epigenetic biomarker technology. The Company’s innovative biomarker technology enables the adoption of new saliva-based health and wellness biomarker solutions. The Company’s research demonstrates that epigenetic biomarkers, collected from saliva, provide measures of individual health and wellness for the factors used in life insurance underwriting traditionally obtained through blood and urine specimens. |
The primary income measure used for assessing segment
performance and making operating decisions is income (losses) before interest, income taxes, and depreciation and amortization not associated
with a specific segment. The segment measure of profitability also excludes corporate and other costs, including management, IT, overhead
costs and certain other non-cash charges or benefits, such as impairment and any non-cash changes in fair value.
With the acquisition of Myrtle on June 14, 2024, our
Chief Operating Decision Maker (“CODM”) begun to consider segment assets when making decisions and allocating resources. Assets
by segment as of March 31, 2025 and December 31, 2024 were as follows:
SCHEDULE OF BUSINESS SEGMENT
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March 31, 2025 | | |
December 31, 2024 | |
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| Healthcare | |
$ | 46,790,560 | | |
$ | 41,399,346 | |
| Labs and Life | |
| 16,503 | | |
| 26,646 | |
| Corporate and other | |
| 204,317 | | |
| 282,079 | |
| Total assets | |
$ | 47,011,380 | | |
$ | 41,708,071 | |
Summarized below is information about the Company’s
operations for the three months ended March 31, 2025 and 2024 by business segment:
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Revenues | | |
Earnings/(Losses) | |
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Three Months Ended March 31, 2025 | | |
Three Months Ended March 31, 2024 | | |
Three Months Ended March 31, 2025 | | |
Three Months Ended March 31, 2024 | |
| Healthcare | |
$ | 3,161,431 | | |
$ | - | | |
$ | (844,598 | ) | |
$ | - | |
| Labs and Life | |
| 8,489 | | |
| 7,180 | | |
| (23,005 | ) | |
| (159,450 | ) |
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| | | |
| | | |
| (867,603 | ) | |
| (159,450 | ) |
| Corporate and other (a) | |
| - | | |
| - | | |
| 1,140,937 | | |
| (1,042,628 | ) |
| Interest expense | |
| - | | |
| - | | |
| (889,792 | ) | |
| (301,912 | ) |
| Total | |
$ | 3,169,920 | | |
$ | 7,180 | | |
$ | (616,458 | ) | |
$ | (1,503,990 | ) |
| (a) |
For the three months ended March 31, 2025, Corporate and other includes a $1.9 million gain from extinguishment of Senior PIK Notes, stock-based compensation, including amortization of consulting fees paid in stock, of $0.1 million and depreciation and amortization expense of $2,257. For the three months ended March 31, 2024, Corporate and other includes stock-based compensation, including amortization of consulting fees paid in stock, of $0.1 million and depreciation and amortization expense of $0.3 million. |
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