v3.26.1
Note 13 - Reportable Segments
 6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Segment Reporting [Text Block]

Note 13.  Reportable Segments

 

The Company has two reportable segments: (i) e-Commerce Operations, which involves acquiring and leasing, primarily an e-commerce platform to collaborate with businesses to optimize their ability to sell their goods online, domestically, and internationally, and enabling customers and partners to optimize their e-commerce presence and revenue, and other related businesses and (ii) Healthcare Operations, which provides TPA, data management, prescription pharmaceuticals, compounded medications, telepharmacy services, anti-retroviral medications, medication therapy management, the supply of prescription medications to long-term care facilities and contracted fulfillment facilities, medication adherence packaging, contracted pharmacy services for 340B covered entities under the 340B Drug Discount Pricing Program, and health practice risk management. This organizational structure aligns with how the Company’s CODMs manage the business, including resource allocation and performance assessment, and further aligns with the Company’s product categories and the key markets the Company serves.

 

The CODMs include the Company’s Chief Executive Officer and Chief Financial Officer.

 

The CODMs evaluate segment performance based on several factors, including Operating profit or loss, as a measure of operating segment performance which excludes the impact of Corporate overhead expenses. Corporate overhead expenses consist of executive compensation, stock-based compensation, public company expenses, and depreciation. The CODMs do not review segment assets at a level different than what is reported in the Company’s Condensed Consolidated Balance Sheets. While the Company believes there are synergies between the two business segments, the segments are managed separately because each requires different business strategies. Accounting policies associated with our operating segments are generally the same as those described in Note 1 to our Annual Report on Form 10-K for the year ended December 31, 2025.

 

The following tables present a summary of the reportable segments (in thousands):

 

For the Three Months Ended June 30, 2026

 

e-Commerce Operations

  

Healthcare Operations

  

Total

 

e-Commerce revenue

 $4,078  $—  $4,078 

Pharmacy prescription and other revenue, net of PBM fees

  —   5,564   5,564 

Pharmacy contract revenue

  —   2,239   2,239 

Revenues, net

  4,078   7,803   11,881 
             

Segment expenses:

            

Cost of revenue

  2,997   4,190   7,187 

Selling, general and administrative

  500   930   1,430 

Salaries, wages and payroll taxes

  343   1,638   1,981 

Depreciation and amortization

  12   35   47 

Intangible asset amortization

  26   —   26 

Total segment expenses

  3,878   6,793   10,671 

Segment operating income

 $200  $1,010   1,210 

Corporate overhead expenses

          1,337 

Non-operating income

          (31)

Loss before income taxes

          (96)

Income taxes

          (48)

Net loss

         $(144)

   

For the Three Months Ended June 30, 2025

 

e-Commerce Operations

  

Healthcare Operations

  

Total

 

e-Commerce revenue

 $4,120  $—  $4,120 

Pharmacy prescription and other revenue, net of PBM fees

  —   8,173   8,173 

Pharmacy contract revenue

  —   947   947 

Revenues, net

  4,120   9,120   13,240 
             

Segment expenses:

            

Cost of revenue

  3,051   7,306   10,357 

Selling, general and administrative

  527   928   1,455 

Salaries, wages and payroll taxes

  366   1,948   2,314 

Depreciation and amortization

  63   75   138 

Intangible asset amortization

  25   —   25 

Total segment expenses

  4,032   10,257   14,289 

Segment operating income (loss)

 $88  $(1,137)  (1,049)

Corporate overhead expenses

          780 

Non-operating income

          (71)

Loss before income taxes

          (1,758)

Income taxes

          (31)

Net loss

         $(1,789)

 

For the Six Months Ended June 30, 2026

 

e-Commerce Operations

  

Healthcare Operations

  

Total

 

e-Commerce revenue

 $7,277  $—  $7,277 

Pharmacy prescription and other revenue, net of PBM fees

  —   10,348   10,348 

Pharmacy contract revenue

  —   4,111   4,111 

Revenues, net

  7,277   14,459   21,736 
             

Segment expenses:

            

Cost of revenue

  5,391   8,239   13,630 

Selling, general and administrative

  974   1,883   2,857 

Salaries, wages and payroll taxes

  720   3,225   3,945 

Depreciation and amortization

  25   78   103 

Intangible asset amortization

  51   —   51 

Total segment expenses

  7,161   13,425   20,586 

Segment operating income

 $116  $1,034   1,150 

Corporate overhead expenses

          2,380 

Non-operating income

          (2)

Loss before income taxes

          (1,228)

Income taxes

          (48)

Net loss

         $(1,276)

 

For the Six Months Ended June 30, 2025

 

e-Commerce Operations

  

Healthcare Operations

  

Total

 

e-Commerce revenue

 $7,126  $—  $7,126 

Pharmacy prescription and other revenue, net of PBM fees

  —   17,664   17,664 

Pharmacy contract revenue

  —   2,376   2,376 

Revenues, net

  7,126   20,040   27,166 
             

Segment expenses:

            

Cost of revenue

  5,332   16,087   21,419 

Selling, general and administrative

  982   1,847   2,829 

Salaries, wages and payroll taxes

  701   4,027   4,728 

Depreciation and amortization

  127   163   290 

Intangible asset amortization

  51   —   51 

Total segment expenses

  7,193   22,124   29,317 

Segment operating loss

 $(67) $(2,084)  (2,151)

Corporate overhead expenses

          1,762 

Non-operating income

          (222)

Loss before income taxes

          (3,691)

Income taxes

          (40)

Net loss

         $(3,731)

 

  

e-Commerce Operations

  

Healthcare Operations

  

Total

 

Total assets as of June 30, 2026

 $14,230  $14,442  $28,672 
             

Total assets as of December 31, 2025

 $12,748  $14,717  $27,465