Quarterly report pursuant to Section 13 or 15(d)

Note 18 - Reportable Segments

v3.24.3
Note 18 - Reportable Segments
 9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

Note 18.  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 third party administrator (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 September 30, 2024

  

e-Commerce Operations

    

Healthcare Operations

    

Eliminations

    

Total

  

Pharmacy prescription and other revenue, net of PBM fees

   $ —     $ 9,076     $ —     $ 9,076  

e-Commerce revenue

     3,834       —       —       3,834  

Pharmacy 340B contract revenue

     —       2,457       —       2,457  

Revenues, net

   $ 3,834     $ 11,533     $ —     $ 15,367  
                                 

Expenses:

                                

Cost of revenue

     2,756       9,091       —       11,847  

Selling, general and administrative

     969       1,384       (60 )     2,293  

Salaries, wages and payroll taxes

     617       2,258       —       2,875  

Impairment loss

     —       3,729       —       3,729  

Professional fees

     1,481       663       —       2,144  

Depreciation and amortization

     141       337       —       478  

Total expenses

     5,964       17,462       (60 )     23,366  

Loss before other (income) expense

     (2,130 )     (5,929 )     60       (7,999 )

Other income

     (324 )     (116 )     60       (380 )

Loss before income taxes

     (1,806 )     (5,813 )     —       (7,619 )

Income taxes

     (45 )     —       —       (45 )

Net loss

   $ (1,851 )   $ (5,813 )   $ —     $ (7,664 )

   

For the Three Months Ended September 30, 2023

  

e-Commerce Operations

    

Healthcare Operations

    

Eliminations

    

Total

  

Pharmacy prescription and other revenue, net of PBM fees

   $ —     $ 9,888     $ —     $ 9,888  

e-Commerce revenue

     2,931       —       —       2,931  

Pharmacy 340B contract revenue

     —       2,471       —       2,471  

Revenues, net

   $ 2,931     $ 12,359     $ —     $ 15,290  
                                 

Expenses:

                                

Cost of revenue

     2,127       8,578       —       10,705  

Selling, general and administrative

     1,978       2,269       (60 )     4,187  

Salaries, wages and payroll taxes

     564       1,919       —       2,483  

Professional fees

     278       243       —       521  

Depreciation and amortization

     164       707       —       871  

Total expenses

     5,111       13,716       (60 )     18,767  

Loss before other (income) expense

     (2,180 )     (1,357 )     60       (3,477 )

Other (income) expense

     (76 )     17       60       1  

Loss before income taxes

     (2,104 )     (1,374 )     —       (3,478 )

Income taxes

     (23 )     —       —       (23 )

Loss before equity method investment

     (2,127 )     (1,374 )     —       (3,501 )

Gain on equity method investment

     6,138       —       —       6,138  

Equity in net loss of affiliate

     —       —       —       —  

Net loss

   $ 4,011     $ (1,374 )   $ —     $ 2,637  

 

For the Nine Months Ended September 30, 2024

  

e-Commerce Operations

    

Healthcare Operations

    

Eliminations

    

Total

  

Pharmacy prescription and other revenue, net of PBM fees

   $ —     $ 30,922     $ —     $ 30,922  

e-Commerce revenue

     10,210       —       —       10,210  

Pharmacy 340B contract revenue

     —       8,717       —       8,717  

Revenues, net

   $ 10,210     $ 39,639     $ —     $ 49,849  
                                 

Expenses:

                                

Cost of revenue

     7,217       28,496       —       35,713  

Selling, general and administrative

     3,517       3,179       (180 )     6,516  

Salaries, wages and payroll taxes

     1,744       6,540       —       8,284  

Impairment loss

     —       13,653       —       13,653  

Professional fees

     2,608       1,525       —       4,133  

Depreciation and amortization

     417       1,870       —       2,287  

Total expenses

     15,503       55,263       (180 )     70,586  

Loss before other (income) expense

     (5,293 )     (15,624 )     180       (20,737 )

Other income

     (735 )     (166 )     180       (721 )

Loss before income taxes

     (4,558 )     (15,458 )     —       (20,016 )

Income taxes

     (92 )     —       —       (92 )

Net loss

   $ (4,650 )   $ (15,458 )   $ —     $ (20,108 )

 

For the Nine Months Ended September 30, 2023

  

e-Commerce Operations

    

Healthcare Operations

    

Eliminations

    

Total

  

Pharmacy prescription and other revenue, net of PBM fees

   $ —     $ 9,888     $ —     $ 9,888  

e-Commerce revenue

     8,764       —       —       8,764  

Pharmacy 340B contract revenue

     —       2,471       —       2,471  

Revenues, net

   $ 8,764     $ 12,359     $ —     $ 21,123  
                                 

Expenses:

                                

Cost of revenue

     6,495       8,579       —       15,074  

Selling, general and administrative

     5,287       2,269       (60 )     7,496  

Salaries, wages and payroll taxes

     2,120       1,919       —       4,039  

Professional fees

     1,143       242       —       1,385  

Depreciation and amortization

     493       708       —       1,201  

Total expenses

     15,538       13,717       (60 )     29,195  

Loss before other (income) expense

     (6,774 )     (1,358 )     60       (8,072 )

Other (income) expense

     (635 )     17       60       (558 )

Loss before income taxes

     (6,139 )     (1,375 )     —       (7,514 )

Income taxes

     (75 )     —       —       (75 )

Loss before equity method investment

     (6,214 )     (1,375 )     —       (7,589 )

Gain on equity method investment

     6,138       —       —       6,138  

Equity in net loss of affiliate

     (1,440 )     —       —       (1,440 )

Net loss

   $ (1,516 )   $ (1,375 )   $ —     $ (2,891 )

 

   

e-Commerce Operations

    

Healthcare Operations

    

Eliminations

    

Total

  

Total assets as of September 30, 2024

   $ 38,566     $ 19,212     $ (16,679 )   $ 41,099  
                         

Total assets as of December 31, 2023

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