v3.26.1
SEGMENT REPORTING
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
SEGMENT REPORTING
17.SEGMENT REPORTING

 

Effective January 1, 2026, the Chief Executive Officer (“CEO”) and Executive Chairman serve as the Chief Operating 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. From January 1, 2025, through December 31, 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 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) 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) to manage the segments, comparing actual results to forecasted amounts and investigating the reasons for significant variances. Our CODM does not evaluate operating segments using asset or liability information. 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 revenue cycle management, SaaS solutions and other services. The Medical Practice Management segment includes the management of three medical practices. Each segment is considered a reporting unit. The accounting policies of the segments are the same as those disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 filed with the SEC on March 12, 2026. The following table presents revenues, operating expenses and operating income (loss) by reportable segment:

  

             
   Six Months Ended June 30, 2026 
   ($ in thousands) 
   Healthcare IT  

Medical

Practice

Management

   Total 
Net revenue  $55,698   $7,452(a)  $63,150 
Operating expenses:               
Direct operating costs   28,259    6,048    34,307 
Selling and marketing   2,704    10    2,714 
General and administrative   5,223    1,360    6,583 
Research and development   4,610    -    4,610 
Change in contingent consideration   23    -    23 
Depreciation and amortization   7,603    165    7,768 
Total operating expenses   48,422    7,583    56,005 
Segment operating income (loss)  $7,276   $(131)   7,145 
                
Reconciliation of profit or loss (segment profit/loss):               
Unallocated corporate expenses             (4,283)
Net interest expense             (790)
Other income             126 
Income before income taxes            $2,198 

 

             
   Three Months Ended June 30, 2026 
   ($ in thousands) 
   Healthcare IT  

Medical

Practice

Management

   Total 
             
Net revenue  $28,194   $3,686(a)  $31,880 
Operating expenses:               
Direct operating costs   14,436    3,021    17,457 
Selling and marketing   1,298    2    1,300 
General and administrative   2,550    717    3,267 
Research and development   2,194    -    2,194 
Change in contingent consideration   (34)   -    (34)
Depreciation and amortization   3,648    83    3,731 
Total operating expenses   24,092    3,823    27,915 
Segment operating income (loss)  $4,102   $(137)   3,965 
                
Reconciliation of profit or loss (segment profit/loss)               
Unallocated corporate expenses             (2,103)
Net interest expense             (742)
Other income             104 
Income before income taxes            $1,224 

 

 

             
   Six Months Ended June 30, 2025 
   ($ in thousands) 
   Healthcare IT  

Medical

Practice

Management

   Total 
Net revenue  $48,719   $6,290(a)  $55,009 
Operating expenses:               
Direct operating costs   24,666    5,278    29,944 
Selling and marketing   2,234    15    2,249 
General and administrative   4,455    1,211    5,666 
Research and development   2,255    -    2,255 
Depreciation and amortization   6,555    164    6,719 
Restructuring costs   137    -    137 
Total operating expenses   40,302    6,668    46,970 
Segment operating income (loss)  $8,417   $(378)   8,039 
                
Reconciliation of profit or loss (segment profit/loss):               
Unallocated corporate expenses             (3,024)
Net interest expense             (33)
Other expense             (49)
Income before income taxes            $4,933 

 

             
   Three Months Ended June 30, 2025 
   ($ in thousands) 
   Healthcare IT  

Medical

Practice

Management

   Total 
Net revenue  $24,077   $3,300(a)  $27,377 
Operating expenses:               
Direct operating costs   11,763    2,717    14,480 
Selling and marketing   1,110    8    1,118 
General and administrative   2,343    569    2,912 
Research and development   1,020    -    1,020 
Depreciation and amortization   3,300    82    3,382 
Restructuring costs   23    -    23 
Total operating expenses   19,559    3,376    22,935 
Segment operating income (loss)  $4,518   $(76)   4,442 
                
Reconciliation of profit or loss (segment profit/loss)               
Unallocated corporate expenses             (1,446)
Net interest expense             (17)
Other expense             (35)
Income before income taxes            $2,944 

 

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