Quarterly report pursuant to Section 13 or 15(d)

Operating Segments (Tables)

Operating Segments (Tables)

9 Months Ended

Sep. 30, 2021

Schedule of Segment Reporting Information

The table below presents certain financial information of our operating segments for the three and nine months ended September 30, 2021 and 2020 (in thousands).

Segment Reporting for the Quarter Ended September 30, 2021

	Treatment			Services			Medical			Segments Total			Corporate ⁽¹⁾			Consolidated Total
	Treatment			Services			Medical			Segments Total			Corporate ⁽¹⁾			Consolidated Total
Revenue from external customers	$	8,893		$	6,904			—		$	15,797		$	—		$	15,797
Intercompany revenues		220			5			—			225			—			—
Gross profit (negative gross profit)		2,487			(263	)		—			2,224			—			2,224
Research and development		52			18			162			232			11			243
Interest income		—			—			—			—			2			2
Interest expense		(51	)		(1	)		—			(52	)		(25	)		(77	)
Interest expense-financing fees		—			—			—			—			(11	)		(11	)
Depreciation and amortization		319			85			—			404			5			409
Segment income (loss) before income taxes		1,317			(984	)		(162	)		171			(1,626	)		(1,455	)
Income tax expense (benefit)		1			—			—			1			(2,837	)		(2,836	)⁽⁵⁾
Segment income (loss)		1,316			(984	)		(162	)		170			1,211			1,381
Expenditures for segment assets		482			—			—			482			—			482	⁽²⁾

Segment Reporting for the Quarter Ended September 30, 2020

	Treatment			Services			Medical			Segments Total			Corporate ⁽¹⁾			Consolidated Total
	Treatment			Services			Medical			Segments Total			Corporate ⁽¹⁾			Consolidated Total
Revenue from external customers	$	7,066		$	23,106			—		$	30,172		$	—		$	30,172
Intercompany revenues		226			6			—			232			—			—
Gross profit		1,094			3,656			—			4,750			—			4,750
Research and development		49			7			81			137			20			157
Interest income		—			—			—			—			28			28
Interest expense		(34	)		(3	)		—			(37	)		(50	)		(87	)
Interest expense-financing fees		—			—			—			—			(58	)		(58	)
Depreciation and amortization		373			97			—			470			8			478
Segment income (loss) before income taxes		280			2,813			(81	)		3,012			(1,664	)		1,348
Income tax (benefit) expense		(170	)		2			—			(168	)		35			(133	)
Segment income (loss)		450			2,811			(81	)		3,180			(1,699	)		1,481
Expenditures for segment assets		95			24			—			119			3			122	⁽³⁾

Segment Reporting for the Nine Months Ended September 30, 2021

	Treatment			Services			Medical			Segments Total			Corporate ⁽¹⁾			Consolidated Total
	Treatment			Services			Medical			Segments Total			Corporate ⁽¹⁾			Consolidated Total
Revenue from external customers	$	24,094		$	30,981			—		$	55,075		$	—		$	55,075
Intercompany revenues		1,199			44			—			1,243			—			—
Gross profit		4,845			701			—			5,546			—			5,546
Research and development		142			50			311			503			35			538
Interest income		—			—			—			—			23			23
Interest expense		(88	)		(9	)		—			(97	)		(112	)		(209	)
Interest expense-financing fees		—			—			—			—			(28	)		(28	)
Depreciation and amortization		939			255			—			1,194			14			1,208
Segment income (loss) before income taxes		1,669			(1,721	)		(311	)		(363	)		987	⁽⁴⁾		624
Income tax (benefit) expense		(13	)		10			—			(3	)		(2,837	)		(2,840	)⁽⁵⁾
Segment income (loss)		1,682			(1,731	)		(311	)		(360	)		3,824			3,464
Expenditures for segment assets		1,109			14			—			1,123			9			1,132	⁽²⁾

Segment Reporting for the Nine Months Ended September 30, 2020

	Treatment			Services			Medical			Segments Total			Corporate ⁽¹⁾			Consolidated Total
	Treatment			Services			Medical			Segments Total			Corporate ⁽¹⁾			Consolidated Total
Revenue from external customers	$	24,469		$	52,610			—		$	77,079		$	—		$	77,079
Intercompany revenues		879			19			—			898			—			—
Gross profit		5,533			7,167			—			12,700			—			12,700
Research and development		194			119			221			534			64			598
Interest income		1			—			—			1			111			112
Interest expense		(80	)		(13	)		—			(93	)		(213	)		(306	)
Interest expense-financing fees		—			—			—			—			(187	)		(187	)
Depreciation and amortization		912			259			—			1,171			18			1,189
Segment income (loss) before income taxes		2,577			5,162			(221	)		7,518			(4,597	)		2,921
Income tax (benefit) expense		(165	)		2			—			(163	)		35			(128	)
Segment income (loss)		2,742			5,160			(221	)		7,681			(4,632	)		3,049
Expenditures for segment assets		1,095			385			—			1,480			8			1,488	⁽³⁾

⁽¹⁾

Amounts reflect the activity for corporate headquarters not included in the segment information.

⁽²⁾

Net of financed amount of $271,000 and $348,000 for the three and nine months ended September 30, 2021, respectively.

⁽³⁾

Net of financed amount of $751,000 and $883,000 for the three and nine months ended September 30, 2020, respectively.

⁽⁴⁾

Amounts includes approximately $5,381,000 of “Gain on extinguishment of debt” recorded in connection with the Company’s PPP Loan which was forgiven by the SBA effective June 15, 2021 (see “Note 8 – Long Term Debt – PPP Loan” for information of this loan forgiveness).

⁽⁵⁾

Includes tax benefit recorded in amount of approximately $2,351,000 resulting from release of valuation allowance on the Company’s deferred tax assets (see “Note 12 – Income Taxes” below a discussion of this tax benefit).