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

 

16. SEGMENT REPORTING

 

As of June 30, 2026, the Company had two reportable operating segments as determined by management using the “management approach” as defined by the authoritative guidance on Disclosures about Segments of an Enterprise and Related Information.

 

  (1) Healthcare (Nova)
  (2) Real Estate (Edge View)

 

These segments are a result of differences in the nature of the products and services sold. Their operating results are regularly reviewed by the Company’s chief operating decision maker group, which consists of the Chairman of the Board and Chief Executive Officer (a dual role held by the same individual) and the Chief Financial Officer. Corporate administration costs, which include, but are not limited to, general accounting, human resources, legal and credit and collections, are partially allocated to the two operating segments.

 

The healthcare segment provides a full range of diagnostic and surgical services for injuries and disorders of the skeletal system and associated bones, joints, tendons, muscles, ligaments, and nerves.

 

The real estate segment consists of Edge View, a real estate company that owns five (5) acres zoned medium density residential (MDR) with 12 lots already platted, six (6) acres zoned high-density residential (HDR) that can be platted in various configurations to meet current housing needs, and twelve (12) acres zoned in Lemhi County as Agriculture that is available for further annexation into the City of Salmon for development, as well as a common area for landowners to view wildlife, provide access to the Salmon River and fishing in a two (2) acre pond.

 

The accounting policies of the segments are the same as those described in Note 1. Summary of Significant Accounting Policies. Management uses revenues, cost of sales, operating expenses, (loss) income from subsidiaries and (loss) income before taxes to evaluate and measure its subsidiaries’ success. To help the segments achieve optimal operating performance, management retains the prior owners of the subsidiaries and allows them to do what they do best, which is run the business. Additionally, management monitors key metrics primarily revenues and income from operations in order to allocate resources accordingly.

      
   June 30, 2026  December 31, 2025
Asset:          
Healthcare  $29,304,827   $27,349,522 
Real Estate   536,236    540,522 
Corporate, administration and other   839,774    1,196,901 
Consolidated assets  $30,680,837   $29,086,945 

 

   Three Months Ended June 30,
   2026  2025
Revenues:      
Healthcare  $2,159,557   $2,789,007 
Real Estate   –    – 
Consolidated revenues  $2,159,557   $2,789,007 
           
Cost of sales:          
Healthcare  $977,242   $1,093,748 
Real Estate   –    – 
Consolidated cost of sales  $977,242   $1,093,748 
           
Operating Expenses:          
Healthcare          
Depreciation expense  $253   $763 
Selling, general and administrative   201,663    217,453 
Total Healthcare   201,916    218,216 
Real Estate   2,133    18,350 
Corporate, administration and other expenses (a)   1,522,909    849,016 
Consolidated operating expenses  $1,726,958   $1,085,582 
           
(Loss) Income from operations from subsidiaries:          
Healthcare  $980,399   $1,477,043 
Real Estate   (2,133)   (18,350)
Income from operations from subsidiaries   978,266    1,458,693 
Loss from operations from Cardiff Lexington   (1,522,909)   (849,016)
Total (loss) income from operations  $(544,643)  $609,677 
           
(Loss) Income before taxes          
Healthcare  $980,399   $1,477,043 
Real Estate   (2,133)   (18,350)
Corporate, administration and other non-operating expenses (b)   (3,457,172)   (2,685,088)
Consolidated loss from continuing operations  $(2,478,906)  $(1,226,395)

 

       
   Six Months Ended June 30,
   2026  2025
Revenues:      
Healthcare  $4,381,837   $5,704,574 
Real Estate   –    – 
Consolidated revenues  $4,381,837   $5,704,574 
           
Cost of sales:          
Healthcare  $1,881,467   $2,168,782 
Real Estate   –    – 
Consolidated cost of sales  $1,881,467   $2,168,782 
           
Operating Expenses:          
Healthcare          
Depreciation expense  $846   $4,128 
Loss on disposal of fixed assets   –    12,593 
Selling, general and administrative   403,110    587,689 
Total Healthcare   403,956    604,410 
Real Estate   4,286    29,118 
Corporate, administration and other expenses (a)   3,147,930    1,748,653 
Consolidated operating expenses  $3,556,172   $2,382,181 
           
(Loss) Income from operations from subsidiaries:          
Healthcare  $2,096,414   $2,931,382 
Real Estate   (4,286)   (29,118)
Income from operations from subsidiaries   2,092,128    2,902,264 
Loss from operations from Cardiff Lexington   (3,147,930)   (1,748,653)
Total (loss) income from operations  $(1,055,802)  $1,153,611 
           
(Loss) Income before taxes          
Healthcare  $2,096,414   $2,929,785 
Real Estate   (4,286)   (29,118)
Corporate, administration and other non-operating expenses (b)   (7,663,108)   (4,577,839)
Consolidated loss from continuing operations  $(5,570,980)  $(1,677,172)

 

(a) Corporate, administration and other operating expenses includes payroll, management fees, stock compensation, legal fees, accounting fees and public company/investor relations fees.
   
(b) Corporate, administration and other non-operating expenses includes corporate selling, general and administrative expenses such as noted above as well as interest, amortization of notes payable discount and gain on settlement of debt.