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Divestitures (Tables) | 3 Months Ended
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Mar. 31, 2026
Discontinued Operations and Disposal Groups [Abstract] |
Schedule of 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 |

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