SEGMENT REPORTING

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

SEGMENT REPORTING

18. SEGMENT REPORTING

The Company’s Chief Executive Officer and Executive Chairman serve as the CODM, organize the Company, manage resource allocations and measure performance among two operating and reportable segments: (i) Healthcare IT and (ii) Medical Practice Management.

The Healthcare IT segment includes technology-assisted revenue cycle management, SaaS solutions and other services. The Medical Practice Management segment includes the management of three medical practices. Each segment is considered a reporting unit. The CODM evaluates the financial performance of the business units on the basis of revenue and direct operating costs excluding unallocated amounts, which are mainly corporate overhead costs. Our CODM does not evaluate operating segments using asset or liability information. The accounting policies of the segments are the same as those disclosed in the summary of significant accounting policies. The following tables present revenues, operating expenses and operating income (loss) by reportable segment for the years ended December 31, 2023 and 2022:

	Year Ended December 31, 2023 ($ in thousands)
	Healthcare IT			Medical Practice Management		Unallocated Corporate Expenses			Total
Net revenue	$	103,683		$	13,376	$	-		$	117,059
Operating expenses:
Direct operating costs		60,319			10,498		-			70,817
Selling and marketing		9,614			36		-			9,650
General and administrative		10,992			1,854		8,618			21,464
Research and development		4,736			-		-			4,736
Depreciation and amortization		14,046			356		-			14,402
Goodwill impairment charges		42,000			-		-			42,000
Loss on lease terminations, unoccupied lease charges and restructuring costs		1,105			-		-			1,105
Total operating expenses		142,812			12,744		8,618			164,174
Operating (loss) income	$	(39,129	)	$	632	$	(8,618	)	$	(47,115	)

	Year Ended December 31, 2022 ($ in thousands)
	Healthcare IT			Medical Practice Management		Unallocated Corporate Expenses			Total
Net revenue	$	125,276		$	13,550	$	-		$	138,826
Operating expenses:
Direct operating costs		73,702			10,732		-			84,434
Selling and marketing		9,760			28		-			9,788
General and administrative		12,558			1,802		9,460			23,820
Research and development		4,401			-		-			4,401
Change in contingent consideration		(3,090	)		-		-			(3,090	)
Depreciation and amortization		11,368			357		-			11,725
Net loss on lease terminations and unoccupied lease charges		1,138			-		-			1,138
Total operating expenses		109,837			12,919		9,460			132,216
Operating income (loss)	$	15,439		$	631	$	(9,460	)	$	6,610