v3.26.1
Reportable Segments
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Reportable Segments

Note 13 Reportable Segments

 

The Company has two reportable segments: Technology and Telehealth. These two reportable segments align with the two legacy operating entities (VSee Lab and iDoc). Operating segments are defined as components of an enterprise where separate financial information is evaluated regularly by a chief operating decision maker (“CODM”) in deciding how to allocate resources and assess performance. As of March 31, 2026, and December 31, 2025, the Company’s CODM role was shared between the two Co-CEOs.

 

The CODM reviews gross margin and loss from operations from our reportable segments to evaluate budgets and forecasts, assess actual performance and allocate resources. The CODM review focuses on month to month and quarter to quarter changes in these profit measures in order to identify potential future liquidity issues, evaluate performance and need for potential cost reductions and identify potential vendor sourcing changes. The CODM also reviews the operating segment’s assets, which mainly includes review of the accounts receivable accounts. 

 

Our reportable segments are described below. The Company has no inter-segment revenues. 

 

Telehealth Services – The Company’s proprietary technology platform and modular software solution empower users to plug and play telehealth services with end-to-end encrypted video streaming integrated with medical device data, electronic medical records, and other sensitive data, with multiple other interactive functionalities that enable teamwork that the Company believes are not available from any other system worldwide.  

Healthcare Technology - The Company’s core platform is a highly scalable, integrated, application program interface (“API”) driven technology platform, for virtual healthcare delivery, with multiple real-time integrations spanning the healthcare ecosystem. The platform’s APIs power external connectivity and deep integration with a wide range of payors, electronic medical records, third-party applications, and other interfaces with employers, hospital systems, and health systems, which we believe uniquely positions us as a long-term partner meeting the unique needs of the rapidly changing healthcare industry. The Company will also be able to white label our solutions, so they fit into the plans and strategies of our clients, all on a platform that is high-performance and highly scalable.

 

The accounting policies of our reportable segments are the same as those described in the “Summary of Significant Accounting Policies” for the Company. In addition, the Company currently operates in one primary geographic area (the United States) and as such, the disclosures below are attributable to that geographic area.

 

Revenue and costs are generally directly attributed to our segments, based on the historical separation of these two operating segments (as prior separate operating entities). In addition, the Company incurs certain costs at the corporate level, which generally include legal, finance and accounting and consulting, investor relations and insurance costs, as well as certain executive compensation costs. These costs recorded at the corporate level are not allocated to the operating segments and are reflected as the “Unallocated corporate overhead expenses” in the summary tables below.

 

Summary information regarding the Company’s operating segments along with the reconciliation of the Company’s consolidated segment operating income to consolidated earnings before income taxes is as follows for the three months ended March 31, 2026, and March 31, 2025:

 

For the three months ended March 31, 2026  Technology   Telehealth   Total 
             
Revenues:            
Subscription fees  $605,470   $-   $605,470 
Professional services and other fees   580,981    -    580,981 
Technical engineering fees   94,441    -    94,441 
Patient fees   -    881,340    881,340 
Telehealth fees   -    997,953    997,953 
Total revenues  $1,280,892   $1,879,293   $3,160,185 
                
Cost of revenues   810,193    1,151,881    1,962,074 
Segment gross margin  $470,699   $727,412   $1,198,111 
                
Less (1):               
Compensation and related benefits   1,482,984    275,091    1,758,075 
General and administrative   302,457    1,237,382    1,539,839 
                
Segment operating loss  $(1,314,742)  $(785,061)  $(2,099,803)
                
Reconciliation to loss before income taxes:               
Unallocated corporate overhead expenses             (874,472)
Interest expense             (113,098)
Change in fair value of financial instruments             143,040 
Gain on extinguishment of financial liabilities             367,809 
Loss before provision for income taxes            $(2,576,524)

 

(1)The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
For the three months ended March 31, 2025  Technology   Telehealth   Total 
             
Revenues:            
Subscription fees  $827,345   $-   $827,345 
Professional services and other fees   896,680    -    896,680 
Technical engineering fees   399,846    -    399,846 
Patient fees   -    711,264    711,264 
Telehealth fees   -    483,850    483,850 
Institutional fees   -    2,500    2,500 
Total revenues  $2,123,871   $1,197,614   $3,321,485 
                
Cost of revenues   1,074,124    387,390    1,461,514 
Segment gross margin  $1,049,747   $810,224   $1,859,971 
                
Less (1):               
Compensation and related benefits   1,164,051    412,319    1,576,370 
General and administrative   239,933    981,079    1,221,012 
Segment operating loss  $(354,237)  $(583,174)  $(937,411)
                
Reconciliation to loss before income taxes:               
Unallocated corporate overhead expenses             (893,907)
Interest expense             (730,665)
Other income, net             15,539 
Change in fair value of financial instruments             (1,261,471)
Loss on issuance of financial instruments             (138,020)
Loss before provision for income taxes            $(3,945,935)

 

(1)The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.

 

The summary information regarding the reportable segment total assets at March 31, 2026, and December 31, 2025, are as follows:

 

   March 31,
2026		   December 31,
2025		 
Total assets:        
Technology  $605,513   $664,525 
Telehealth   16,656,643    17,150,543 
Non-operating corporate   1,754,263    4,597,951 
Total  $19,016,419   $22,413,019 

 

   March 31,
2026		   December 31,
2025		 
Total Goodwill:        
Technology  $-   $- 
Telehealth   4,916,694    4,916,694 
Non-operating corporate   -    - 
Total  $4,916,694   $4,916,694 

Some additional summary information regarding the reportable segment depreciation and amortization, capital expenditures and interest expense at March 31, 2026, and 2025 are as follows:

 

   March 31,
2026		   March 31,
2025		 
Depreciation and Amortization:        
Technology  $4,227   $2,161 
Telehealth   642,392    644,876 
Total  $646,619   $647,037 

 

   March 31,
2026		   March 31,
2025		 
Capital Expenditures:        
Technology  $26,752   $11,873 
Telehealth   -    - 
Total  $26,752   $11,873 

 

   March 31,
2026		   March 31,
2025		 
Interest Expense:        
Technology  $21,155   $21,158 
Telehealth   20,642    54,252 
Non-operating corporate   71,301    655,255 
Total  $113,098   $730,665