11. Segment Information

9 Months Ended

Sep. 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 September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Net revenues - External
Clinical Laboratory Operations	$	169,649		$	5,972,121		$	4,146,949		$	28,396,875
Supportive Software Solutions		50,447			(81,203	)		605,575			524,476
Decision Support and Informatics		69,908			–			470,005			–
	$	290,004		$	5,890,918		$	5,222,529		$	28,921,351
Net revenues - Intersegment
Supportive Software Solutions		502,055			743,706			1,036,396			1,572,443
	$	502,055		$	743,706		$	1,036,396		$	1,572,443
(Loss) income from operations
Clinical Laboratory Operations	$	(7,583,131	)	$	(218,517	)	$	(11,281,361	)	$	6,138,369
Supportive Software Solutions		(1,253,386	)		(1,478,594	)		(3,800,893	)		(4,198,856	)
Decision Support and Informatics		(832,965	)		–			(2,390,245	)		–
Corporate		(2,940,956	)		(1,874,976	)		(7,059,644	)		(7,888,747	)
Eliminations		33,662			–			100,986			–
	$	(12,576,776	)	$	(3,572,087	)	$	(24,431,157	)	$	(5,949,234	)
Depreciation and amortization
Clinical Laboratory Operations	$	562,929		$	593,965		$	1,706,164		$	1,562,314
Supportive Software Solutions		163,749			163,299			490,236			499,162
Decision Support and Informatics		8,514			–			33,324			–
Corporate		745			–			2,494			–
Eliminations		(33,662	)		(28,692	)		(100,986	)		(82,470	)
	$	702,275		$	728,572		$	2,131,232		$	1,979,006
Capital expenditures
Clinical Laboratory Operations	$	–		$	380,196		$	26,729		$	363,138
Supportive Software Solutions		–			9,554			9,998			61,552
Eliminations		–			(65,000	)		–			(65,000	)
	$	–		$	324,750		$	36,727		$	359,690

	September 30, 2016			December 31, 2015
Total assets
Clinical Laboratory Operations	$	7,403,965		$	15,152,583
Supportive Software Solutions		2,199,119			2,896,473
Decision Support and Informatics		213,465			4,307,053
Corporate		3,209,233			14,109,337
Eliminations		(2,827,845	)		(7,095,520	)
	$	10,197,937		$	29,369,926