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Divestitures (Tables) | 6 Months Ended
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Jun. 30, 2025
Discontinued Operations and Disposal Groups [Abstract] |
Schedule of Discontinued Operations | During the three and six months ended June 30, 2024, property and equipment, net related to asset groups determined to not be recoverable were written down from their carrying values to their respective fair values resulting in the following non-cash impairment losses:
| Three Months Ended June 30, 2024
| Carrying Value |  | Fair Value |  | Net loss on disposition or impairment related to discontinued operations
Property and equipment, net | $ | 1,040,615 |  |  | $ | 660,946 |  |  | $ | 379,669 |
Operating lease right-of-use asset | 476,983 |  |  | 95,870 |  |  | 381,113 |
Intangible assets, net | 298,510 |  |  | 252,746 |  |  | 45,764 |
Total net loss on disposition or impairment related to discontinued operations |  | $ | 806,546 |
| Six Months Ended June 30, 2024
| Carrying Value |  | Fair Value |  | Net loss on disposition or impairment related to discontinued operations
Property and equipment, net | $ | 1,900,692 |  |  | $ | 1,388,984 |  |  | $ | 511,708 |
Operating lease right-of-use asset | 476,983 |  |  | 95,870 |  |  | 381,113 |
Intangible assets, net | 298,510 |  |  | 252,746 |  |  | 45,764 |
Total net loss on disposition or impairment related to discontinued operations |  | $ | 938,585 |
As a result of its evaluation of the recoverability of the carrying value of the assets and liabilities held for sale relative to the agreed upon sales prices or the clinics estimated fair values, the Company recorded an estimated net loss on disposal, which is included in Income from discontinued operations before income tax expense in its condensed consolidated income statement as follows:
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
Net loss on disposition or impairment related to discontinued operations |  | $ | 439,831 |  |  | $ | 527,081 |  |  | $ | 1,422,765 |  |  | $ | 705,337 |
The following table shows a reconciliation of the Company’s impairment and disposal losses recorded in Income from discontinued operations before income tax expense for the three and six months ended June 30, 2025 and 2024:
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Impairment on long-lived assets held for use |  |  |  |  |  |  |
Property and equipment, net | $ | — |  |  | $ | 379,669 |  |  | $ | — |  |  | $ | 511,708 |
Operating lease right-of-use asset | — |  |  | 381,113 |  |  | — |  |  | 381,113 |
Intangible assets, net | — |  |  | 45,764 |  |  | — |  |  | 45,764 |
Impairment on assets held for sale |  |  |  |  |  |  |
Assets held for sale | 439,831 |  |  | 527,081 |  |  | 1,422,765 |  |  | 705,337 |
Loss on disposal of assets other than by sale |  |  |  |  |  |  |
Property and equipment, net | 257,922 |  |  | 101,031 |  |  | 267,164 |  |  | 152,564 |
Operating lease right-of-use asset | 233,695 |  |  | — |  |  | 425,778 |  |  | — |
Loss on sale of assets | 821,046 |  |  | — |  |  | 770,145 |  |  | — |
Total net loss on disposition or impairment related to discontinued operations | $ | 1,752,494 |  |  | $ | 1,434,658 |  |  | $ | 2,885,852 |  |  | $ | 1,796,486 |
The key components of Net income from discontinued operations that were included in the Company’s condensed consolidated income statements are as follows:
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
Revenues: |  |  |  |  |  |  |  |
Revenues from company-owned or managed clinics |  | $ | 16,642,013 |  |  | $ | 17,650,525 |  |  | $ | 33,548,363 |  |  | $ | 35,187,976 |
Total revenues |  | 16,642,013 |  |  | 17,650,525 |  |  | 33,548,363 |  |  | 35,187,976 |
Cost of revenues: |  |  |  |  |  |  |  |
IT cost of revenues |  | 5,551 |  |  | 14,282 |  |  | 11,723 |  |  | 25,846 |
Total cost of revenues |  | 5,551 |  |  | 14,282 |  |  | 11,723 |  |  | 25,846 |
Selling and marketing expenses |  | 1,825,654 |  |  | 1,961,443 |  |  | 3,718,400 |  |  | 3,609,974 |
Depreciation and amortization |  | 17,120 |  |  | 1,181,359 |  |  | 43,505 |  |  | 2,255,631 |
General and administrative expenses |  | 11,857,995 |  |  | 14,777,444 |  |  | 24,128,217 |  |  | 27,701,829 |
Total selling, general and administrative expenses |  | 13,700,769 |  |  | 17,920,246 |  |  | 27,890,122 |  |  | 33,567,434 |
Net loss on disposition or impairment from discontinued operations |  | 1,752,494 |  |  | 1,434,658 |  |  | 2,885,852 |  |  | 1,796,486 |
Income (loss) from discontinued operations |  | 1,183,199 |  |  | (1,718,661) |  |  | 2,760,666 |  |  | (201,790) |
Other expense, net |  | — |  |  | 561 |  |  | 238 |  |  | 1,189 |
Income (loss) before income tax expense |  | 1,183,199 |  |  | (1,719,222) |  |  | 2,760,428 |  |  | (202,979) |
Income tax expense from discontinued operations |  | 100,201 |  |  | 167,153 |  |  | 203,613 |  |  | 337,498 |
Net income (loss) from discontinued operations |  | $ | 1,082,998 |  |  | $ | (1,886,375) |  |  | $ | 2,556,815 |  |  | $ | (540,477) |
The following table summarizes the major classes of assets and liabilities of discontinued operations that were included in the Company’s condensed consolidated balance sheets:
|  | June 30, 2025 |  | December 31, 2024
ASSETS |  |  |  |
Accounts receivable |  | $ | 674,573 |  |  | $ | 2,484,248 |
Prepaid expenses and other current assets |  | 1,375,346 |  |  | 549,605 |
Assets held for sale |  | 22,692,768 |  |  | 38,395,986 |
Property and equipment, net |  | 156,288 |  |  | 208,074 |
Deferred tax assets (attributable to VIEs) |  | 1,087,204 |  |  | 1,087,204 |
Deposits and other assets |  | 303,506 |  |  | 425,938 |
Total assets, discontinued operations |  | $ | 26,289,685 |  |  | $ | 43,151,055 |
LIABILITIES |  |  |  |
Accounts payable |  | $ | 144,560 |  |  | $ | 67,107 |
Accrued expenses |  | 2,329,986 |  |  | 5,066,941 |
Payroll liabilities ($0.7 million and $0.9 million attributable to VIEs, respectively) |  | 2,045,251 |  |  | 2,333,335 |
Operating lease liability, current portion |  | 286,324 |  |  | 153,517 |
Finance lease liability, current portion |  | — |  |  | 38,015 |
Other current liabilities (attributable to VIEs) |  | 1,079,442 |  |  | 1,079,441 |
Liabilities to be disposed of ($4.8 million and $5.2 million attributable to VIEs, respectively) |  | 19,492,223 |  |  | 28,629,103 |
Total liabilities, discontinued operations |  | $ | 25,377,786 |  |  | $ | 37,367,459 |
The key components of cash flows from discontinued operations are as follows:
|  |  |  | Six Months Ended June 30,
|  |  |  |  |  | 2025 |  | 2024
Depreciation and amortization |  |  |  |  |  | $ | 43,505 |  |  | $ | 2,255,631 |
Capital expenditures |  |  |  |  |  |  |  |
Purchase of property and equipment |  |  |  |  |  | 73,535 |  |  | 245,486 |
Significant operating and investing non-cash items |  |  |  |  |  |  |  |
Net loss on disposition or impairment |  |  |  |  |  | 2,885,852 |  |  | 1,796,486 |
The principal components of the held for sale assets and liabilities to be disposed of as of June 30, 2025 and December 31, 2024 were as follows:
| June 30, 2025 |  | December 31, 2024
Assets |  |  |
Contract assets | $ | 1,220,767 |  |  | $ | — |
Property and equipment, net | 4,938,413 |  |  | 8,457,627 |
Operating lease right-of-use asset | 14,184,353 |  |  | 19,643,917 |
Intangible assets, net | 4,518,833 |  |  | 6,906,807 |
Goodwill | 3,482,718 |  |  | 8,459,238 |
Valuation allowance | (5,652,316) |  |  | (5,071,603) |
Total assets held for sale | $ | 22,692,768 |  |  | $ | 38,395,986 |
Liabilities |  |  |
Operating lease liability, current and non-current | $ | 13,970,185 |  |  | $ | 20,526,714 |
Deferred revenue from company-owned or managed clinics | 5,522,038 |  |  | 8,102,389 |
Total liabilities to be disposed of | $ | 19,492,223 |  |  | $ | 28,629,103 |

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