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v3.26.1

Nature of Operations and Summary of Significant Accounting Policies (Tables) | 3 Months Ended
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Mar. 31, 2026
Accounting Policies [Abstract] |
Schedule of Franchisor Disclosure | The following table summarizes the number of clinics in operation under franchise agreements and as company-owned or managed clinics for the three months ended March 31, 2026 and 2025:
| Three Months Ended March 31, |  |
Franchised clinics: | 2026 |  | 2025 |  |  |  |
Clinics open at beginning of period | 885 |  |  | 842 |  |  |  |  |
Opened during the period | 3 |  |  | 5 |  |  |  |  |
Closed during the period | (20) |  |  | — |  |  |  |  |
Clinics in operation at the end of the period | 868 |  |  | 847 |  |  |  |  |
| Three Months Ended March 31, |  |
Company-owned or managed clinics: | 2026 |  | 2025 |  |  |  |
Clinics open at beginning of period | 75 |  |  | 125 |  |  |  |  |
Sold during the period | — |  |  | (2) |  |  |  |  |
Closed during the period | — |  |  | (1) |  |  |  |  |
Clinics in operation at the end of the period | 75 |  |  | 122 |  |  |  |  |
Total clinics in operation at the end of the period | 943 |  |  | 969 |  |  |  |  |
Clinic licenses sold but not yet developed | 57 |  |  | 94 |  |  |  |  |
Future clinic licenses subject to executed letters of intent | 53 |  |  | 52 |  |  |  |  |
Schedule of Variable Interest Entities | VIE net income (including the management fee) for the three months ended March 31, 2026 and 2025, respectively, is included in Income from discontinued operations before income tax expense and Income tax expense from discontinued operations in the condensed consolidated income statements as follows:
| Three Months Ended March 31, |  |
| 2026 |  | 2025 |  |  |  |
Income from discontinued operations before income tax | $ | 726,039 |  |  | $ | 387,287 |  |  |  |  |
Income tax expense from discontinued operations | 182,369 |  |  | 103,412 |  |  |  |  |
Net income | $ | 543,670 |  |  | $ | 283,875 |  |  |  |  |
The carrying amount of the VIEs’ assets and liabilities is included in discontinued operations as of March 31, 2026 and December 31, 2025 in the condensed consolidated balance sheets as follows:
| March 31, 2026 |  | December 31, 2025
Discontinued operations current assets | $ | 994,138 |  |  | $ | 994,138 |
Discontinued operations current liabilities | 6,198,944 |  |  | 6,079,903 |
Schedule of Reconciliation of Allowance for Credit Losses | The following table provides a reconciliation of the activity related to our allowance for credit losses:
| Allowance for Credit Losses
Balance at December 31, 2024 | $ | 220,893 |
Bad debt expense recognized during the year | 286,232 |
Write-off of uncollectible amounts | (77,638) |
Balance at December 31, 2025 | $ | 429,487 |
Bad debt expense recognized during the period | 85,216 |
Write-off of uncollectible amounts | (2,600) |
Balance at March 31, 2026 | $ | 512,103 |
Schedule of Impairment Losses and Disposal Gains and Losses Recorded in Income from Discontinued Operations | As a result of our 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, we recorded an estimated net loss on disposal, which is included in Income from discontinued operations before income tax expense in the condensed consolidated income statement as follows:
|  | Three Months Ended March 31, |  |
|  | 2026 |  | 2025 |  |  |  |
Net loss on disposition or impairment related to discontinued operations |  | $ | 408,232 |  |  | $ | 982,934 |  |  |  |  |
The following table shows a reconciliation of our impairment and disposal losses recorded in Income from discontinued operations before income tax expense for the three months ended March 31, 2026 and 2025:
|  | Three Months Ended March 31, |  |
|  | 2026 |  | 2025 |  |  |  |
Impairment on assets held for sale |  |  |  |  |  |  |  |
Assets held for sale |  | $ | 408,232 |  |  | $ | 982,934 |  |  |  |  |
Loss on disposal of assets other than by sale |  |  |  |  |  |  |  |
Property and equipment, net |  | 816 |  |  | 9,241 |  |  |  |  |
Operating lease right-of-use asset |  | 6,484 |  |  | 192,083 |  |  |  |  |
Gain on the sale of assets |  | (37,768) |  |  | (50,901) |  |  |  |  |
Total net loss on disposition or impairment related to discontinued operations |  | $ | 377,764 |  |  | $ | 1,133,357 |  |  |  |  |
The key components of Net income from discontinued operations that were included in our condensed consolidated income statements are as follows:
|  | Three Months Ended March 31, |  |
|  | 2026 |  | 2025 |  |  |  |
Revenues: |  |  |  |  |  |  |  |
Revenues from company-owned or managed clinics |  | $ | 9,354,191 |  |  | $ | 16,906,350 |  |  |  |  |
Total revenues |  | 9,354,191 |  |  | 16,906,350 |  |  |  |  |
Cost of revenues: |  |  |  |  |  |  |  |
IT cost of revenues |  | 6,181 |  |  | 6,172 |  |  |  |  |
Total cost of revenues |  | 6,181 |  |  | 6,172 |  |  |  |  |
Selling and marketing expenses |  | 1,007,302 |  |  | 1,892,746 |  |  |  |  |
Depreciation and amortization |  | 7,757 |  |  | 26,386 |  |  |  |  |
General and administrative expenses |  | 7,564,501 |  |  | 12,270,222 |  |  |  |  |
Total selling, general and administrative expenses |  | 8,579,560 |  |  | 14,189,354 |  |  |  |  |
Net loss on disposition or impairment from discontinued operations |  | 377,764 |  |  | 1,133,357 |  |  |  |  |
Income from discontinued operations |  | 390,686 |  |  | 1,577,467 |  |  |  |  |
Other expense, net |  | 11,973 |  |  | 238 |  |  |  |  |
Income before income tax expense |  | 378,713 |  |  | 1,577,229 |  |  |  |  |
Income tax expense from discontinued operations |  | 182,369 |  |  | 103,412 |  |  |  |  |
Net income from discontinued operations |  | $ | 196,344 |  |  | $ | 1,473,817 |  |  |  |  |
The following table summarizes the major classes of assets and liabilities of discontinued operations that were included in our condensed consolidated balance sheets:
|  | March 31, 2026 |  | December 31, 2025
ASSETS |  |  |  |
Accounts receivable |  | $ | 275,679 |  |  | $ | 315,201 |
Prepaid expenses and other current assets |  | 170,177 |  |  | 581,504 |
Assets held for sale, net of valuation allowance |  | 20,083,666 |  |  | 20,051,965 |
Property and equipment, net |  | 15,052 |  |  | 67,779 |
Deferred tax assets (attributable to VIEs) |  | 994,138 |  |  | 994,138 |
Deposits and other assets |  | 235,870 |  |  | 235,731 |
Total assets, discontinued operations |  | $ | 21,774,582 |  |  | $ | 22,246,318 |
LIABILITIES |  |  |  |
Accounts payable |  | $ | 32,098 |  |  | $ | 83,503 |
Accrued expenses |  | 2,934,669 |  |  | 2,519,433 |
Payroll liabilities ($0.4 million and $0.6 million attributable to VIEs, respectively) |  | 826,461 |  |  | 988,865 |
Operating lease liability, current portion |  | 604,826 |  |  | 651,844 |
Other current liabilities (attributable to VIEs) |  | 756,483 |  |  | 756,483 |
Liabilities to be disposed of ($4.7 million and $4.7 million attributable to VIEs, respectively) |  | 16,044,023 |  |  | 16,368,318 |
Total liabilities, discontinued operations |  | $ | 21,198,560 |  |  | $ | 21,368,446 |
The key components of cash flows from discontinued operations are as follows:
|  |  |  | Three Months Ended March 31,
|  |  |  |  |  | 2026 |  | 2025
Significant operating and investing non-cash items: |  |  |  |  |  |  |  |
Depreciation and amortization |  |  |  |  |  | $ | 7,757 |  |  | $ | 26,386 |
Net loss on disposition or impairment |  |  |  |  |  | 377,764 |  |  | 1,133,357 |
Capital expenditures: |  |  |  |  |  |  |  |
Purchase of property and equipment |  |  |  |  |  | — |  |  | 66,656 |
The principal components of the held for sale assets and liabilities to be disposed of as of March 31, 2026 and December 31, 2025 were as follows:
| March 31, 2026 |  | December 31, 2025
Assets: |  |  |
Property and equipment, net | $ | 4,496,729 |  |  | $ | 4,497,545 |
Operating lease right-of-use asset | 14,551,830 |  |  | 14,111,081 |
Intangible assets, net | 4,288,265 |  |  | 4,288,265 |
Goodwill | 3,482,718 |  |  | 3,482,718 |
Valuation allowance | (6,735,876) |  |  | (6,327,644) |
Total assets held for sale, net | $ | 20,083,666 |  |  | $ | 20,051,965 |
Liabilities: |  |  |
Operating lease liability, current and non-current | $ | 10,656,341 |  |  | $ | 11,065,542 |
Deferred revenue from company-owned or managed clinics | 5,387,682 |  |  | 5,302,776 |
Total liabilities to be disposed of | $ | 16,044,023 |  |  | $ | 16,368,318 |
Schedule of Earnings (loss) per Common Share |
| Three Months Ended March 31, |  |  |  |
| 2026 |  | 2025 |  |  |  |  |  |  |  |
Net income (loss) from continuing operations | $ | 1,102,791 |  |  | $ | (506,021) |  |  |  |  |  |  |  |  |
Net income from discontinued operations | 196,344 |  |  | 1,473,817 |  |  |  |  |  |  |  |  |
Net income | $ | 1,299,135 |  |  | $ | 967,796 |  |  |  |  |  |  |  |  |
Weighted average common shares outstanding - basic | 14,181,109 |  |  | 15,186,420 |  |  |  |  |  |  |  |  |
Effect of dilutive securities: |  |  |  |  |  |  |  |  |  |  |
Unvested restricted stock and stock options | 4,043 |  |  | 76,732 |  |  |  |  |  |  |  |  |
Weighted average common shares outstanding - diluted | 14,185,152 |  |  | 15,263,152 |  |  |  |  |  |  |  |  |
Income (loss) earnings per share: |  |  |  |  |  |  |  |  |  |  |
Basic income (loss) earnings per share: |  |  |  |  |  |  |  |  |  |  |
Continuing operations | $ | 0.08 |  |  | $ | (0.03) |  |  |  |  |  |  |  |  |
Discontinued operations | 0.01 |  |  | 0.10 |  |  |  |  |  |  |  |  |
Net income per basic share | $ | 0.09 |  |  | $ | 0.06 |  |  |  |  |  |  |  |  |
Diluted income (loss) earnings per share |  |  |  |  |  |  |  |  |  |  |
Continuing operations | $ | 0.08 |  |  | $ | (0.03) |  |  |  |  |  |  |  |  |
Discontinued operations | 0.01 |  |  | 0.10 |  |  |  |  |  |  |  |  |
Net income per diluted share | $ | 0.09 |  |  | $ | 0.06 |  |  |  |  |  |  |  |  |
The following common stock equivalents were excluded from the computation of diluted earnings (loss) per share for the periods presented because including them would have been antidilutive:
| Three Months Ended March 31, |  |  |  |
| 2026 |  | 2025 |  |  |  |  |  |  |  |
Stock options | 52,079 |  |  | 85,528 |  |  |  |  |  |  |  |  |

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