Quarterly report [Sections 13 or 15(d)]

Note 17 - Reportable Segments

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Note 17 - Reportable Segments
 6 Months Ended
Jun. 30, 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 Interim Chief Executive Officer and Chief Financial 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 June 30, 2025

  

e-Commerce Operations

    

Healthcare Operations

    

Eliminations

    

Total

  

e-Commerce revenue

   $ 4,120     $ —     $ —     $ 4,120  

Pharmacy prescription and other revenue, net of PBM fees

     —       8,173       —       8,173  

Pharmacy 340B contract revenue

     —       947       —       947  

Revenues, net

     4,120       9,120       —       13,240  
                                 

Expenses:

                                

Cost of revenue

     3,051       7,306       —       10,357  

Selling, general and administrative

     739       734       —       1,473  

Salaries, wages and payroll taxes

     601       1,948       —       2,549  

Professional fees

     321       194       —       515  

Depreciation and amortization

     75       75       —       150  

Intangible asset amortization

     25       —       —       25  

Total expenses

     4,812       10,257       —       15,069  

Loss before other (income) expense

     (692 )     (1,137 )     —       (1,829 )

Other (income) expense

     (224 )     153       —       (71 )

Loss before income taxes

     (468 )     (1,290 )     —       (1,758 )

Income taxes

     (31 )     —       —       (31 )

Net loss

   $ (499 )   $ (1,290 )   $ —     $ (1,789 )

   

For the Three Months Ended June 30, 2024

  

e-Commerce Operations

    

Healthcare Operations

    

Eliminations

    

Total

  

e-Commerce revenue

   $ 3,512     $ —     $ —     $ 3,512  

Pharmacy prescription and other revenue, net of PBM fees

     —       10,521       —       10,521  

Pharmacy 340B contract revenue

     —       2,956       —       2,956  

Revenues, net

     3,512       13,477       —       16,989  
                                 

Expenses:

                                

Cost of revenue

     2,401       8,730       —       11,131  

Selling, general and administrative

     837       826       (60 )     1,603  

Salaries, wages and payroll taxes

     1,165       2,287       —       3,452  

Impairment loss

     —       9,792       —       9,792  

Professional fees

     620       384       —       1,004  

Depreciation and amortization

     114       89       —       203  

Intangible asset amortization

     32       668       —       700  

Total expenses

     5,169       22,776       (60 )     27,885  

Loss before other income

     (1,657 )     (9,299 )     60       (10,896 )

Other income

     (210 )     (23 )     60       (173 )

Loss before income taxes

     (1,447 )     (9,276 )     —       (10,723 )

Income taxes

     (20 )     —       —       (20 )

Net loss

   $ (1,467 )   $ (9,276 )   $ —     $ (10,743 )

 

For the Six Months Ended June 30, 2025

  

e-Commerce Operations

    

Healthcare Operations

    

Eliminations

    

Total

  

e-Commerce revenue

   $ 7,126     $ —     $ —     $ 7,126  

Pharmacy prescription and other revenue, net of PBM fees

     —       18,263       —       18,263  

Pharmacy 340B contract revenue

     —       2,376       —       2,376  

Revenues, net

     7,126       20,639       —       27,765  
                                 

Expenses:

                                

Cost of revenue

     5,332       16,087       —       21,419  

Selling, general and administrative

     1,406       1,499       —       2,905  

Salaries, wages and payroll taxes

     1,237       4,027       —       5,264  

Professional fees

     772       348       —       1,120  

Depreciation and amortization

     157       163       —       320  

Intangible asset amortization

     51       —             51  

Total expenses

     8,955       22,124       —       31,079  

Loss before other (income) expense

     (1,829 )     (1,485 )     —       (3,314 )

Other (income) expense

     (365 )     143       —       (222 )

Loss before income taxes

     (1,464 )     (1,628 )     —       (3,092 )

Income taxes

     (40 )     —       —       (40 )

Net loss

   $ (1,504 )   $ (1,628 )   $ —     $ (3,132 )

 

For the Six Months Ended June 30, 2024

  

e-Commerce Operations

    

Healthcare Operations

    

Eliminations

    

Total

  

e-Commerce revenue

   $ 6,377     $ —     $ —     $ 6,377  

Pharmacy prescription and other revenue, net of PBM fees

     —       21,845       —       21,845  

Pharmacy 340B contract revenue

     —       6,260       —       6,260  

Revenues, net

     6,377       28,105       —       34,482  
                                 

Expenses:

                                

Cost of revenue

     4,462       19,300       —       23,762  

Selling, general and administrative

     1,453       1,586       (120 )     2,919  

Salaries, wages and payroll taxes

     2,220       4,595       —       6,815  

Impairment loss

     —       9,924       —       9,924  

Professional fees

     1,127       862       —       1,989  

Depreciation and amortization

     239       173       —       412  

Intangible asset amortization

     38       1,360       —       1,398  

Total expenses

     9,539       37,800       (120 )     47,219  

Loss before other (income) expense

     (3,162 )     (9,695 )     120       (12,737 )

Other (income) expense

     (413 )     (48 )     120       (341 )

Loss before income taxes

     (2,749 )     (9,647 )     —       (12,396 )

Income taxes

     (47 )     —       —       (47 )

Net loss

   $ (2,796 )   $ (9,647 )   $ —     $ (12,443 )

 

   

e-Commerce Operations

    

Healthcare Operations

    

Eliminations

    

Total

  

Total assets as of June 30, 2025

   $ 18,057     $ 12,976     $ —     $ 31,033  
                         

Total assets as of December 31, 2024

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