| BUSINESS SEGMENTS |
Note
13 BUSINESS SEGMENTS
The
Company manages and classifies its business into three reportable business segments: (i) Healthcare, (ii) Life Science Services and (iii)
Labs.
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Healthcare
- The Company’s Healthcare segment includes the operations of Myrtle and RCHI’s hospital, BSF. 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. 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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Life
Science Services – The Company’s Life Science Services segment began with the acquisition of Vector on September 19,
2025. Vector is an information, data and biospecimen sourcing provider serving the biotechnology, clinical research and pharmaceutical
research industries. |
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Labs
- The Company’s Labs 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 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 of intangible assets.
Assets
by segment as of March 31, 2026 and December 31, 2025 were as follows:
SCHEDULE OF BUSINESS SEGMENT
| | |
March
31, 2026 | | |
December
31, 2025 | |
| | |
| | |
| |
| Healthcare | |
$ | 41,824,419 | | |
$ | 40,869,803 | |
| Life Science Services | |
| 3,830,873 | | |
| 3,648,500 | |
| Labs | |
| 19,034 | | |
| 15,854 | |
| Corporate
and other | |
| 111,808 | | |
| 43,716 | |
| Total
assets | |
$ | 45,786,134 | | |
$ | 44,577,873 | |
Summarized
below is information about the Company’s operations for the three months ended March 31, 2026 and 2025 by business segment:
| | |
Net
Revenues | | |
Earnings
(Losses) | |
| | |
2026 | | |
2025 | | |
2026 | | |
2025 | |
| Healthcare | |
$ | 4,798,551 | | |
$ | 3,161,431 | | |
$ | 296,914 | | |
$ | (844,598 | ) |
| Life Science Services | |
| 361,250 | | |
| - | | |
| 142,416 | | |
| - | |
| Labs | |
| 4,386 | | |
| 8,489 | | |
| (32,370 | ) | |
| (23,005 | ) |
| | |
| 5,164,187 | | |
| 3,161,431 | | |
| 406,960 | | |
| (867,603 | ) |
| Loss on legal settlement | |
| - | | |
| - | | |
| (18,250 | ) | |
| - | |
| Gain from extinguishment
of Senior PIK Notes | |
| - | | |
| - | | |
| - | | |
| 1,863,834 | |
| Corporate and other | |
| 3,849 | | |
| - | | |
| (867,680 | ) | |
| (722,897 | ) |
| Interest
expense | |
| - | | |
| - | | |
| (973,003 | ) | |
| (889,792 | ) |
| Total | |
$ | 5,168,036 | | |
$ | 3,169,920 | | |
$ | (1,451,973 | ) | |
$ | (616,458 | ) |
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