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

NOTE 18 — SEGMENT REPORTING

The Company’s chief operating decision maker (“CODM”), its Chief Executive Officer, reviews financial information to make operating decisions, assess performance and allocate resources by segment. Beginning in the second quarter of 2026, following the inclusion of Waqoo’s results of operations, the Company reports its operations in two reportable segments: SBC Core Segment and Waqoo Segment. Prior to this change, the Company viewed its operations and managed its business as a single reportable segment. The SBC Core Segment primarily derives revenues from providing comprehensive management services to MCs and their clinics. The Waqoo Segment comprises Waqoo and its subsidiary, Cell Pro Japan Co., Ltd., and primarily derives revenues from medical support services and direct-to-consumer product sales.

The accounting policies for the reportable segments are the same as those described in Note 2. The CODM monitors segment actual results against budget and updated forecasts throughout the year. These results are used to assess segment performance. Intersegment transactions are generally accounted for on a cost-plus basis and are eliminated in consolidation, and therefore do not affect consolidated results.

The significant segment expenses regularly reviewed by the CODM and included in the measure of segment income from operations are cost of revenues and selling, general and administrative expenses. Segment asset information is not regularly reviewed by the CODM.

NOTE 18 — SEGMENT REPORTING (cont.)

The revenues and operating results by the Company’s reportable segments were as follows:

 

 

 

For the Three Months
Ended June 30,

 

 

For the Six Months
Ended June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

SBC Core Segment

 

 

 

 

 

 

 

 

 

 

 

 

 Revenues from external customers

 

$

44,673,560

 

 

$

43,358,847

 

 

$

87,734,122

 

 

$

90,687,548

 

 Intersegment revenues

 

 

5,157

 

 

 

—

 

 

 

5,157

 

 

 

—

 

 Total revenues

 

 

44,678,717

 

 

 

43,358,847

 

 

 

87,739,279

 

 

 

90,687,548

 

 Cost of revenues

 

 

14,441,272

 

 

 

13,348,270

 

 

 

27,155,100

 

 

 

22,943,887

 

 Selling, general and administrative expenses

 

 

14,993,311

 

 

 

15,456,385

 

 

 

27,620,030

 

 

 

28,987,395

 

 Segment income from operations

 

$

15,244,134

 

 

$

14,554,192

 

 

$

32,964,149

 

 

$

38,756,266

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Waqoo Segment

 

 

 

 

 

 

 

 

 

 

 

 

 Revenues

 

$

4,514,508

 

 

$

—

 

 

$

4,514,508

 

 

$

—

 

 Intersegment revenues

 

 

5,223,313

 

 

 

—

 

 

 

5,223,313

 

 

 

—

 

 Total revenues

 

 

9,737,821

 

 

 

—

 

 

 

9,737,821

 

 

 

—

 

 Cost of revenues

 

 

3,952,020

 

 

 

—

 

 

 

3,952,020

 

 

 

—

 

 Selling, general and administrative expenses

 

 

2,029,629

 

 

 

—

 

 

 

2,029,629

 

 

 

—

 

 Segment income from operations

 

$

3,756,172

 

 

$

—

 

 

$

3,756,172

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intersegment Eliminations

 

 

 

 

 

 

 

 

 

 

 

 

 Revenues

 

$

(5,228,470

)

 

$

—

 

 

$

(5,228,470

)

 

$

—

 

 Cost of revenues

 

 

(5,182,540

)

 

 

—

 

 

 

(5,182,540

)

 

 

—

 

 Selling, general and administrative expenses

 

 

(6,174

)

 

 

—

 

 

 

(6,174

)

 

 

—

 

 Intersegment income from operations

 

$

(39,756

)

 

$

—

 

 

$

(39,756

)

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 Revenues

 

$

49,188,068

 

 

$

43,358,847

 

 

$

92,248,630

 

 

$

90,687,548

 

 Cost of revenues

 

 

13,210,752

 

 

 

13,348,270

 

 

 

25,924,580

 

 

 

22,943,887

 

 Selling, general and administrative expenses

 

 

17,016,766

 

 

 

15,456,385

 

 

 

29,643,485

 

 

 

28,987,395

 

 Income from operations

 

 

18,960,550

 

 

 

14,554,192

 

 

 

36,680,565

 

 

 

38,756,266

 

 Other income (expenses), net *

 

 

594,136

 

 

 

(1,013,831

)

 

 

1,730,732

 

 

 

6,235,502

 

Income before income taxes and equity in losses of equity method investees

 

$

19,554,686

 

 

$

13,540,361

 

 

$

38,411,297

 

 

$

44,991,768

 

 

* Other income (expenses), net consists of interest income, interest expense, net foreign currency exchange gain (loss), other income, other expenses, and gain on redemption of life insurance policies, as applicable.