Quarterly report [Sections 13 or 15(d)]

Note 17 - Reportable Segments

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Note 17 - Reportable Segments
 3 Months Ended
Mar. 31, 2025
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

Note 17.  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 prescription pharmaceuticals, TPA, data management, 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 chief operating decision makers (“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 and Chief Executive Officer 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 Condensed Consolidated Balance Sheets and Condensed 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 3 to our Annual Report on Form 10-K for the year ended December 31, 2024.

 

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

 

For the Three Months Ended March 31, 2025

  

e-Commerce Operations

    

Healthcare Operations

    

Eliminations

    

Total

  

e-Commerce revenue

   $ 3,006     $ —     $ —     $ 3,006  

Pharmacy prescription and other revenue, net of PBM fees

     —       10,090       —       10,090  

Pharmacy 340B contract revenue

     —       1,429       —       1,429  

Revenues, net

   $ 3,006     $ 11,519     $ —     $ 14,525  
                                 

Expenses:

                                

Cost of revenue

     2,281       8,781       —       11,062  

Selling, general and administrative

     667       765       —       1,432  

Salaries, wages and payroll taxes

     636       2,079       —       2,715  

Professional fees

     451       154       —       605  

Depreciation and amortization

     82       88       —       170  

Intangible asset amortization

     26       —       —       26  

Total expenses

     4,143       11,867       —       16,010  

Loss before other (income) expense

     (1,137 )     (348 )     —       (1,485 )

Other (income) expense

     (141 )     (10 )     —       (151 )

Loss before income taxes

     (996 )     (338 )     —       (1,334 )

Income taxes

     (9 )     —       —       (9 )

Net loss

   $ (1,005 )   $ (338 )   $ —     $ (1,343 )

   

For the Three Months Ended March 31, 2024

  

e-Commerce Operations

    

Healthcare Operations

    

Eliminations

    

Total

  

e-Commerce revenue

   $ 2,865     $ —     $ —     $ 2,865  

Pharmacy prescription and other revenue, net of PBM fees

     —       11,324       —       11,324  

Pharmacy 340B contract revenue

     —       3,304       —       3,304  

Revenues, net

   $ 2,865     $ 14,628     $ —     $ 17,493  
                                 

Expenses:

                                

Cost of revenue

     2,060       10,570       —       12,630  

Selling, general and administrative

     619       813       (60 )     1,372  

Salaries, wages and payroll taxes

     1,054       2,256       —       3,310  

Impairment loss

     —       132       —       132  

Professional fees

     507       478       —       985  

Depreciation and amortization

     124       84       —       208  

Intangible asset amortization

     6       692       —       698  

Total expenses

     4,370       15,025       (60 )     19,335  

Loss before other (income) expense

     (1,505 )     (397 )     60       (1,842 )

Other (income) expense

     (204 )     (24 )     60       (168 )

Loss before income taxes

     (1,301 )     (373 )     —       (1,674 )

Income taxes

     (27 )     —       —       (27 )

Net loss

   $ (1,328 )   $ (373 )   $ —     $ (1,701 )

 

   

e-Commerce Operations

    

Healthcare Operations

    

Eliminations

    

Total

  

Total assets as of March 31, 2025

   $ 18,574     $ 16,630     $ —     $ 35,204  
                         

Total assets as of December 31, 2024

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