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SEGMENT REPORTING
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
SEGMENT REPORTING

 

19. SEGMENT REPORTING

 

From January 1, 2024 through April 30, 2024, the Chief Executive Officer (“CEO”) and Executive Chairman served as the Chief Decision Maker (“CODM”), organizing the Company, managing resource allocations and measuring performance among two operating and reportable segments: (i) Healthcare IT and (ii) Medical Practice Management. As of May 1, 2024, the Company’s President, CEO and Executive Chairman served as the CODM. Effective January 1, 2025, the Executive Chairman and the two Co-CEOs served as the CODM. We report our segment information based on the internal reporting used by management for making decisions and assessing performance as the source of our reportable segments.

 

The CODM evaluates the financial performance of the business units on the basis of revenue, certain individual and total operating expenses and operating income (loss), as shown below, excluding unallocated amounts, which are mainly corporate overhead costs, for assessing operating results and the allocation of resources. Our CODM does not evaluate operating segments using asset or liability information. The CODM uses segment revenue, certain segment operating expenses and segment operating income (loss), as shown below, to manage the segments, comparing actual results to forecasted amounts and investigating the reasons for significant variances. Currently, a focus is being placed on reducing costs and managing global headcount. The segment revenue and segment operating income (loss) is also used to assess the performance of personnel and in establishing their compensation.

 

The Healthcare IT segment includes technology-assisted revenue cycle management, SaaS solutions and professional and other services. The Medical Practice Management segment includes the management of three medical practices. Each segment is considered a reporting unit. The Company does not have intra-entity sales or asset transfers, however, there are intracompany bank transfers. The accounting policies of the segments are the same as those disclosed in the summary of significant accounting policies. The following tables present revenues, operating expenses and operating income (loss) by reportable segment for the years ended December 31, 2025 and 2024:

  

   Healthcare IT   Medical Practice Management   Total 
   Year Ended December 31, 2025 
   ($ in thousands) 
   Healthcare IT   Medical Practice Management   Total 
Net revenue  $106,566   $13,933(a)  $120,499 
Operating expenses:               
Direct operating costs   53,077    11,379    64,456 
Selling and marketing   4,789    29    4,818 
General and administrative   9,932    2,510    12,442 
Research and development   6,382    -    6,382 
Depreciation and amortization   14,632    328    14,960 
Restructuring costs   154    -    154 
Total operating expenses   88,966    14,246    103,212 
Segment operating income (loss)  $17,600   $(313)   17,287 
                
Reconciliation of profit or loss (segment profit/loss):               
Unallocated corporate expenses             (5,944)
Net interest expense             (81)
Other expense             (265)
Income before income taxes            $10,997 

 

 

   Healthcare IT   Medical Practice Management   Total 
   Year Ended December 31, 2024 
   ($ in thousands) 
   Healthcare IT   Medical Practice Management   Total 
Net revenue  $96,405   $14,432(a)  $110,837 
Operating expenses:               
Direct operating costs   49,945    10,897    60,842 
Selling and marketing   6,201    31    6,232 
General and administrative   9,093    1,911    11,004 
Research and development   3,781    -    3,781 
Depreciation and amortization   13,813    329    14,142 
Lease termination and restructuring costs   596    -    596 
Total operating expenses   83,429    13,168    96,597 
Segment operating income  $12,976   $1,264    14,240 
                
Reconciliation of profit or loss (segment profit/loss):               
Unallocated corporate expenses             (5,119)
Net interest expense             (812)
Other expense             (298)
Income before income taxes            $8,011 

 

(a)This revenue represents fees based on our actual costs plus a percentage of the operating profit.