Annual report [Section 13 and 15(d), not S-K Item 405]

Note 21 - Reportable Segments

v3.25.1
Note 21 - Reportable Segments
 12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

Note 21.  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. 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. Additionally, the e-Commerce Operations reportable segment CODM includes the President of Global Operations and the Healthcare Operations reportable segment CODM includes the Pharmacy Chief Operating Officer.

 

The CODMs do not review segment assets and segment expenses at a level different than what is reported in the Company’s Consolidated Balance Sheets and Consolidated Statements of Comprehensive Loss. 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.

 

The following tables provide information about the Company’s reportable segments (in thousands):

 

Year Ended December 31, 2024

  

e-Commerce Operations

    

Healthcare Operations

    

Eliminations

    

Total

  

e-Commerce revenue

   $ 13,791     $ —     $ —     $ 13,791  

Pharmacy prescription and other revenue, net of PBM fees

     —       41,308       —       41,308  

Pharmacy 340B contract revenue

     —       10,384       —       10,384  

Revenues, net

     13,791       51,692       —       65,483  
                                 

Expenses:

                                

Cost of revenue

     10,356       38,898       —       49,254  

Selling, general and administrative

     4,134       3,726       —       7,860  

Salaries, wages and payroll taxes

     2,372       9,069       —       11,441  

Impairment loss

     —       13,653       —       13,653  

Professional fees

     2,900       1,741       (240 )     4,401  

Depreciation and amortization

     539       1,959       —       2,498  

Total expenses

     20,301       69,046       (240 )     89,107  

Operating loss

     (6,510 )     (17,354 )     240       (23,624 )

Interest expense

     13       68       —       81  

Other (income) expense

     (647 )     (244 )     240       (651 )

Loss before income taxes

     (5,876 )     (17,178 )     —       (23,054 )

Income taxes

     (71 )     —       —       (71 )

Net loss

   $ (5,947 )   $ (17,178 )   $ —     $ (23,125 )
                                 

Year Ended December 31, 2023

  

e-Commerce Operations

    

Healthcare Operations

    

Eliminations

    

Total

  

e-Commerce revenue

   $ 10,977     $ —     $ —     $ 10,977  

Pharmacy prescription and other revenue, net of PBM fees

     —       21,412       —       21,412  

Pharmacy 340B contract revenue

     —       5,367       —       5,367  

Revenues, net

     10,977       26,779       —       37,756  
                                 

Expenses:

                                

Cost of revenue

     8,122       18,323       —       26,445  

Selling, general and administrative

     6,633       3,277       —       9,910  

Salaries, wages and payroll taxes

     2,670       3,973       —       6,643  

Impairment loss

     —       13,895       —       13,895  

Professional fees

     1,595       506       (120 )     1,981  

Depreciation and amortization

     647       1,463       —       2,110  

Total expenses

     19,667       41,437       (120 )     60,984  

Operating loss

     (8,690 )     (14,658 )     120       (23,228 )

Interest expense

     25       54       —       79  

Other (income) expense

     (1,072 )     (64 )     120       (1,016 )

Loss before income taxes

     (7,643 )     (14,648 )     —       (22,291 )

Income taxes

     (28 )     —       —       (28 )

Net loss

   $ (7,671 )   $ (14,648 )   $ —     $ (22,319 )

 

   

e-Commerce Operations

    

Healthcare Operations

    

Eliminations

    

Total

  

Total assets as of December 31, 2024

   $ 19,044     $ 17,434     $ —     $ 36,478  
                                 

Total assets as of December 31, 2023

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

  

Capital expenditures for the year ended December 31, 2024 were approximately $50,000 for e-Commerce Operations and $139,000 for Healthcare Operations.