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SEGMENT REPORTING | 6 Months Ended
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Jun. 30, 2025
Segment Reporting [Abstract] |
SEGMENT REPORTING | 17. SEGMENT REPORTING From January 1, 2023 through April 30, 2024, the Chief Executive Officer (“CEO”) and Executive Chairman served as the Chief Decision Maker (“CODM”), organizing the Company, managing resource allocations and measuring performance among two operating and reportable segments: (i) Healthcare IT and (ii) Medical Practice Management. As of May 1, 2024, the Company’s President, CEO and Executive Chairman served as the CODM. Effective January 1, 2025, the Executive Chairman and the two Co-CEOs serve as the CODM. We report our segment information based on the internal reporting used by management for making decisions and assessing performance as the source of our reportable segments. The CODM evaluates the financial performance of the business units on the basis of revenue, certain individual and total operating expenses and operating income (loss) excluding unallocated amounts, which are mainly corporate overhead costs, for assessing operating results and the allocation of resources. Our CODM does not evaluate operating segments using asset or liability information. The CODM uses segment revenue, certain segment operating expenses and segment operating income (loss) to manage the segments, comparing actual results to forecasted amounts and investigating the reasons for significant variances. Currently, a focus is being placed on reducing costs and managing global headcount. The segment revenue and segment operating income (loss) is also used to assess the performance of personnel and in establishing their compensation. The Healthcare IT segment includes revenue cycle management, SaaS solutions and other services. The Medical Practice Management segment includes the management of three medical practices. Each segment is considered a reporting unit. The CODM evaluates the financial performance of the business units on the basis of revenue and direct operating costs excluding unallocated amounts that are mainly corporate overhead costs. Our CODM does not evaluate operating segments using asset or liability information. The accounting policies of the segments are the same as those disclosed in the Company’s Annual Report on Form 10-K/A for the year ended December 31, 2024 filed with the SEC on April 3, 2025. The following table presents revenues, operating expenses and operating income (loss) by reportable segment: SCHEDULE OF REVENUES, OPERATING EXPENSES AND OPERATING INCOME (LOSS) BY REPORTABLE SEGMENT
|  | Healthcare IT |  |  | Medical Practice Management |  |  | Total |
|  | Six Months Ended June 30, 2025 |
|  | ($ in thousands) |
|  | Healthcare IT |  |  | Medical Practice Management |  |  | Total |
Net revenue |  | $ | 48,719 |  |  | $ | 6,290 | (a) |  | $ | 55,009 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |
Direct operating costs |  |  | 24,666 |  |  |  | 5,278 |  |  |  | 29,944 |
Selling and marketing |  |  | 2,234 |  |  |  | 15 |  |  |  | 2,249 |
General and administrative |  |  | 4,455 |  |  |  | 1,211 |  |  |  | 5,666 |
Research and development |  |  | 2,255 |  |  |  | - |  |  |  | 2,255 |
Depreciation and amortization |  |  | 6,555 |  |  |  | 164 |  |  |  | 6,719 |
Restructuring costs |  |  | 137 |  |  |  | - |  |  |  | 137 |
Total operating expenses |  |  | 40,302 |  |  |  | 6,668 |  |  |  | 46,970 |
Segment operating income (loss) |  | $ | 8,417 |  |  | $ | (378 | ) |  | $ | 8,039 |
Reconciliation of profit or loss (segment profit/loss): |  |  |  |  |  |  |  |  |  |  |  |
Unallocated corporate expenses |  |  |  |  |  |  |  |  |  | $ | (3,024 | )
Net interest expense |  |  |  |  |  |  |  |  |  |  | (33 | )
Other expenses |  |  |  |  |  |  |  |  |  |  | (49 | )
Income before income taxes |  |  |  |  |  |  |  |  |  | $ | 4,933 |
(a) This revenue represents fees based on our actual costs plus a percentage of the operating profit.
|  | Healthcare IT |  |  | Medical Practice Management |  |  | Total |
|  | Three Months Ended June 30, 2025 |
|  | ($ in thousands) |
|  | Healthcare IT |  |  | Medical Practice Management |  |  | Total |
Net revenue |  | $ | 24,077 |  |  | $ | 3,300 | (a) |  | $ | 27,377 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |
Direct operating costs |  |  | 11,763 |  |  |  | 2,717 |  |  |  | 14,480 |
Selling and marketing |  |  | 1,110 |  |  |  | 8 |  |  |  | 1,118 |
General and administrative |  |  | 2,343 |  |  |  | 569 |  |  |  | 2,912 |
Research and development |  |  | 1,020 |  |  |  | - |  |  |  | 1,020 |
Depreciation and amortization |  |  | 3,300 |  |  |  | 82 |  |  |  | 3,382 |
Restructuring costs |  |  | 23 |  |  |  | - |  |  |  | 23 |
Total operating expenses |  |  | 19,559 |  |  |  | 3,376 |  |  |  | 22,935 |
Segment operating income (loss) |  | $ | 4,518 |  |  | $ | (76 | ) |  | $ | 4,442 |
Reconciliation of profit or loss (segment profit/loss) |  |  |  |  |  |  |  |  |  |  |  |
Unallocated corporate expenses |  |  |  |  |  |  |  |  |  |  | (1,446 | )
Interest expense |  |  |  |  |  |  |  |  |  |  | (17 | )
Other expenses |  |  |  |  |  |  |  |  |  |  | (35 | )
Income before income taxes |  |  |  |  |  |  |  |  |  | $ | 2,944 |
(a) This revenue represents fees based on our actual costs plus a percentage of the operating profit.
|  | Healthcare IT |  |  | Medical Practice Management |  |  | Total |
|  | Six Months Ended June 30, 2024 |
|  | ($ in thousands) |
|  | Healthcare IT |  |  | Medical Practice Management |  |  | Total |
Net revenue |  | $ | 47,301 |  |  | $ | 6,751 | (a) |  | $ | 54,052 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |
Direct operating costs |  |  | 25,254 |  |  |  | 5,165 |  |  |  | 30,419 |
Selling and marketing |  |  | 3,417 |  |  |  | 17 |  |  |  | 3,434 |
General and administrative |  |  | 4,602 |  |  |  | 911 |  |  |  | 5,513 |
Research and development |  |  | 1,968 |  |  |  | - |  |  |  | 1,968 |
Depreciation and amortization |  |  | 7,478 |  |  |  | 166 |  |  |  | 7,644 |
Restructuring costs |  |  | 438 |  |  |  | - |  |  |  | 438 |
Total operating expenses |  |  | 43,157 |  |  |  | 6,259 |  |  |  | 49,416 |
Segment operating income |  | $ | 4,144 |  |  | $ | 492 |  |  | $ | 4,636 |
Reconciliation of profit or loss (segment profit/loss): |  |  |  |  |  |  |  |  |  |  |  |
Unallocated corporate expenses |  |  |  |  |  |  |  |  |  | $ | (2,236 | )
Net interest expense |  |  |  |  |  |  |  |  |  |  | (602 | )
Other income |  |  |  |  |  |  |  |  |  |  | (287 | )
Income before income taxes |  |  |  |  |  |  |  |  |  | $ | 1,511 |
(a) This revenue represents fees based on our actual costs plus a percentage of the operating profit.
|  | Healthcare IT |  |  | Medical Practice Management |  |  | Total |
|  | Three Months Ended June 30, 2024 |
|  | ($ in thousands) |
|  | Healthcare IT |  |  | Medical Practice Management |  |  | Total |
Net revenue |  | $ | 24,580 |  |  | $ | 3,510 | (a) |  | $ | 28,090 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |
Direct operating costs |  |  | 12,710 |  |  |  | 2,532 |  |  |  | 15,242 |
Selling and marketing |  |  | 1,657 |  |  |  | 7 |  |  |  | 1,664 |
General and administrative |  |  | 2,021 |  |  |  | 477 |  |  |  | 2,498 |
Research and development |  |  | 1,055 |  |  |  | - |  |  |  | 1,055 |
Depreciation and amortization |  |  | 3,633 |  |  |  | 81 |  |  |  | 3,714 |
Restructuring costs |  |  | 116 |  |  |  | - |  |  |  | 116 |
Restructuring costs |  |  | 116 |  |  |  | - |  |  |  | 116 |
Total operating expenses |  |  | 21,192 |  |  |  | 3,097 |  |  |  | 24,289 |
Segment operating income |  | $ | 3,388 |  |  | $ | 413 |  |  | $ | 3,801 |
Reconciliation of profit or loss (segment profit/loss) |  |  |  |  |  |  |  |  |  |  |  |
Unallocated corporate expenses |  |  |  |  |  |  |  |  |  |  | (1,530 | )
Interest expense |  |  |  |  |  |  |  |  |  |  | (264 | )
Other expenses |  |  |  |  |  |  |  |  |  |  | (294 | )
Income before income taxes |  |  |  |  |  |  |  |  |  | $ | 1,713 |
(a) | This revenue represents fees based on our actual costs plus a percentage of the operating profit.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name 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