Quarterly report pursuant to Section 13 or 15(d)

Note 20 - Reportable Segments

v3.24.2.u1
Note 20 - Reportable Segments
 6 Months Ended
Jun. 30, 2024
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

Note 20.  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, COVID-19 related diagnostics and vaccinations, prescription pharmaceuticals, compounded medications, telepharmacy services, anti-retroviral medications, medication therapy management, the supply of prescription medications to long-term care facilities, medication adherence packaging, contracted pharmacy services for 340B covered entities under the 340B Drug Discount Pricing Program, and health practice risk management. 

 

The Company evaluates the performance of each of the segments based on profit or loss after general and administrative expenses. While the Company believes there are synergies between the two business segments, the segments are managed separately because each requires different business strategies.

 

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

 

For the Three Months Ended June 30, 2024

  

e-Commerce Operations

    

Healthcare Operations

    

Eliminations

    

Total

  

Pharmacy prescription and other revenue, net of PBM fees

   $ -     $ 10,521     $ -     $ 10,521  

e-Commerce revenue

     3,512       -       -       3,512  

Pharmacy 340B contract revenue

     -       2,956       -       2,956  

Revenues, net

   $ 3,512     $ 13,477     $ -     $ 16,989  
                                 

Expenses:

                                

Cost of revenue

     2,401       8,782       -       11,183  

Selling, general and administrative

     1,382       895       (60 )     2,217  

Salaries, wages and payroll taxes

     619       2,166       -       2,785  

Impairment loss

     -       9,792       -       9,792  

Professional fees

     620       384       -       1,004  

Depreciation and amortization

     146       757       -       903  
      5,168       22,776       (60 )     27,884  

Loss before other (income) expense

     (1,656 )     (9,299 )     60       (10,895 )

Other income

     (210 )     (23 )     (60 )     (173 )

Loss before income taxes

     (1,446 )     (9,276 )     -       (10,722 )

Income taxes

     (20 )     -       -       (20 )

Net loss

   $ (1,466 )   $ (9,276 )   $ -     $ (10,742 )

   

For the Three Months Ended June 30, 2023

  

e-Commerce Operations

    

Healthcare Operations

    

Eliminations

    

Total

  

Pharmacy prescription and other revenue, net of PBM fees

   $ -     $ -     $ -     $ -  

e-Commerce revenue

     2,957       -       -       2,957  

Pharmacy 340B contract revenue

     -       -       -       -  

Revenues, net

   $ 2,957     $ -     $ -     $ 2,957  
                                 

Expenses:

                                

Cost of revenue

     2,113       -       -       2,113  

Selling, general and administrative

     2,519       -       -       2,519  

Salaries, wages and payroll taxes

     968       -       -       968  

Professional fees

     544       -       -       544  

Depreciation and amortization

     168       -       -       168  
      6,312       -       -       6,312  

Loss before other (income) expense

     (3,355 )     -       -       (3,355 )

Other income

     (473 )     -       -       (473 )

Loss before income taxes

     (2,882 )     -       -       (2,882 )

Income taxes

     (52 )     -       -       (52 )

Loss before equity method investment

     (2,934 )     -       -       (2,934 )

Equity in net loss of affiliate

     (1,407 )     -       -       (1,407 )

Net loss

   $ (4,341 )   $ -     $ -     $ (4,341 )

 

 

 

For the Six Months Ended June 30, 2024

  

e-Commerce Operations

    

Healthcare Operations

    

Eliminations

    

Total

  

Pharmacy prescription and other revenue, net of PBM fees

   $ -     $ 21,773     $ -     $ 21,773  

e-Commerce revenue

     6,377       -       -       6,377  

Pharmacy 340B contract revenue

     -       6,332       -       6,332  

Revenues, net

   $ 6,377     $ 28,105     $ -     $ 34,482  
                                 

Expenses:

                                

Cost of revenue

     4,462       19,405       -       23,867  

Selling, general and administrative

     2,545       1,795       (120 )     4,220  

Salaries, wages and payroll taxes

     1,127       4,282       -       5,409  

Impairment loss

     -       9,924       -       9,924  

Professional fees

     1,127       862       -       1,989  

Depreciation and amortization

     277       1,533       -       1,810  
      9,538       37,801       (120 )     47,219  

Loss before other (income) expense

     (3,161 )     (9,696 )     120       (12,737 )

Other income

     (413 )     (48 )     (120 )     (341 )

Loss before income taxes

     (2,748 )     (9,648 )     -       (12,396 )

Income taxes

     (47 )     -       -       (47 )

Net (loss) income

   $ (2,795 )   $ (9,648 )   $ -     $ (12,443 )

 

 

For the Six Months Ended June 30, 2023

  

e-Commerce Operations

    

Healthcare Operations

    

Eliminations

    

Total

  

Pharmacy prescription and other revenue, net of PBM fees

   $ -     $ -     $ -     $ -  

e-Commerce revenue

     5,834       -       -       5,834  

Pharmacy 340B contract revenue

     -       -       -       -  

Revenues, net

   $ 5,834     $ -     $ -     $ 5,834  
                                 

Expenses:

                                

Cost of revenue

     4,369       -       -       4,369  

Selling, general and administrative

     3,308       -       -       3,308  

Salaries, wages and payroll taxes

     1,556       -       -       1,556  

Professional fees

     865       -       -       865  

Depreciation and amortization

     330       -       -       330  
      10,428       -       -       10,428  

Loss before other (income) expense

     (4,594 )     -       -       (4,594 )

Other income

     (558 )     -       -       (558 )

Loss before income taxes

     (4,036 )     -       -       (4,036 )

Income taxes

     (52 )     -       -       (52 )

Loss before equity method investment

     (4,088 )     -       -       (4,088 )

Equity in net loss of affiliate

     (1,440 )     -       -       (1,440 )

Net loss

   $ (5,528 )   $ -     $ -     $ (5,528 )

 

   

e-Commerce Operations

    

Healthcare Operations

    

Eliminations

    

Total

  

Total assets as of June 30, 2024

   $ 39,313     $ 28,827     $ (16,679 )   $ 51,461  
                         

Total assets as of December 31, 2023

   $ 40,764     $ 40,384     $ (16,679 )   $ 64,469