11. Segment Information

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Segment Reporting

Operating segments are defined under U.S. GAAP as components of an enterprise for which discrete financial information is available and are evaluated regularly by the enterprise’s chief operating decision maker in determining how to allocate resources and assess performance. The Company operates in three reportable business segments:

· Clinical Laboratory Operations, which specializes in providing urine and blood toxicology and pain medication testing to physicians, clinics and rehabilitation facilities in the United States.

· Supportive Software Solutions, including EHR and medical billing and laboratory information management systems.

· Decision Support and Informatics, which develops and markets medical information and clinical support products and services intended to set a standard for the clinical interpretation of genomics-based precision medicine.

The accounting policies of the reportable segments are the same as those described in Note 2, Summary of Significant Accounting Policies, of the Company’s audited consolidated financial statements included in the Company’s Annual Report on Form 10-K/A for the year ended December 31, 2015. Selected financial information for the Company’s operating segments is as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Net revenues - External
Clinical Laboratory Operations	$	2,512,163		$	8,924,951		$	3,977,300		$	22,424,754
Supportive Software Solutions		325,102			456,700			555,128			605,679
Decision Support and Informatics		216,447			–			400,097			–
	$	3,053,712		$	9,381,651		$	4,932,525		$	23,030,433
Net revenues - Inter Segment
Supportive Software Solutions		237,993			444,629			534,341			828,737
	$	237,993		$	444,629		$	534,341		$	828,737
Income (loss) from operations
Clinical Laboratory Operations	$	(1,047,690	)	$	1,291,465		$	(3,698,230	)	$	6,356,886
Supportive Software Solutions		(1,234,194	)		(1,362,273	)		(2,547,507	)		(2,720,262	)
Decision Support and Informatics		(675,714	)		–			(1,557,280	)		–
Corporate		(2,166,251	)		(4,548,962	)		(4,118,688	)		(6,067,549	)
Eliminations		33,664			28,062			67,324			53,778
	$	(5,090,185	)	$	(4,591,708	)	$	(11,854,381	)	$	(2,377,147	)
Depreciation and amortization
Clinical Laboratory Operations	$	562,134		$	521,024		$	1,143,235		$	968,349
Supportive Software Solutions		162,059			175,507			326,487			335,863
Decision Support and Informatics		10,283			–			24,810			–
Corporate		874			(26,890	)		1,749			–
Eliminations		(33,663	)		–			(67,324	)		(53,778	)
	$	701,687		$	669,641		$	1,428,957		$	1,250,434
Capital expenditures
Clinical Laboratory Operations	$	14,473		$	84,867		$	31,358		$	272,752
Supportive Software Solutions		7,881			26,741			9,998			51,998
	$	22,354		$	111,608		$	41,356		$	324,750

	June 30, 2016			December 31, 2015
Total assets
Clinical Laboratory Operations	$	13,578,567		$	15,152,583
Supportive Software Solutions		2,605,016			2,896,473
Decision Support and Informatics		314,335			4,307,053
Corporate		4,716,237			12,711,284
Eliminations		(2,861,507	)		(7,095,520	)
	$	18,352,648		$	27,971,873