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SEGMENT REPORTING | 3 Months Ended
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Mar. 31, 2026
Segment Reporting [Abstract] |
SEGMENT REPORTING |
17. | SEGMENT REPORTING
Effective January 1, 2026, the Chief Executive Officer (“CEO”) and Executive Chairman serve 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. From January 1, 2025, through December 31, 2025, the Executive Chairman and the two Co-CEOs served 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 for the year ended December 31, 2025 filed with the SEC on March 12, 2026. 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 |
|  | Three Months Ended March 31, 2026 |
|  | ($ in thousands) |
|  | Healthcare IT |  |  | Medical Practice Management |  |  | Total |
Net revenue |  | $ | 27,504 |  |  | $ | 3,766 | (a) |  | $ | 31,270 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |
Direct operating costs |  |  | 13,822 |  |  |  | 3,028 |  |  |  | 16,850 |
Selling and marketing |  |  | 1,406 |  |  |  | 8 |  |  |  | 1,414 |
General and administrative |  |  | 2,673 |  |  |  | 643 |  |  |  | 3,316 |
Research and development |  |  | 2,416 |  |  |  | - |  |  |  | 2,416 |
Change in contingent consideration |  |  | 57 |  |  |  | - |  |  |  | 57 |
Depreciation and amortization |  |  | 3,955 |  |  |  | 82 |  |  |  | 4,037 |
Restructuring costs |  |  |  |  |  |  |  |  |  |  |  |
Total operating expenses |  |  | 24,329 |  |  |  | 3,761 |  |  |  | 28,090 |
Segment operating income |  | $ | 3,175 |  |  | $ | 5 |  |  |  | 3,180 |
Reconciliation of profit or loss (segment profit/loss): |  |  |  |  |  |  |  |  |  |  |  |
Unallocated corporate expenses |  |  |  |  |  |  |  |  |  |  | (2,180 | )
Net interest expense |  |  |  |  |  |  |  |  |  |  | (48 | )
Other income |  |  |  |  |  |  |  |  |  |  | 22 |
Income before income taxes |  |  |  |  |  |  |  |  |  | $ | 974 |
|  | Healthcare IT |  |  | Medical Practice Management |  |  | Total |
|  | Three Months Ended March 31, 2025 |
|  | ($ in thousands) |
|  | Healthcare IT |  |  | Medical Practice Management |  |  | Total |
Net revenue |  | $ | 24,643 |  |  | $ | 2,989 | (a) |  | $ | 27,632 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |
Direct operating costs |  |  | 12,904 |  |  |  | 2,560 |  |  |  | 15,464 |
Selling and marketing |  |  | 1,124 |  |  |  | 7 |  |  |  | 1,131 |
General and administrative |  |  | 2,112 |  |  |  | 642 |  |  |  | 2,754 |
Research and development |  |  | 1,235 |  |  |  | - |  |  |  | 1,235 |
Depreciation and amortization |  |  | 3,255 |  |  |  | 82 |  |  |  | 3,337 |
Restructuring costs |  |  | 114 |  |  |  | - |  |  |  | 114 |
Total operating expenses |  |  | 20,744 |  |  |  | 3,291 |  |  |  | 24,035 |
Segment operating income (loss) |  | $ | 3,899 |  |  | $ | (302 | ) |  |  | 3,597 |
Reconciliation of profit or loss (segment profit/loss): |  |  |  |  |  |  |  |  |  |  |  |
Unallocated corporate expenses |  |  |  |  |  |  |  |  |  |  | (1,578 | )
Net interest expense |  |  |  |  |  |  |  |  |  |  | (16 | )
Other expense |  |  |  |  |  |  |  |  |  |  | (14 | )
Income before income taxes |  |  |  |  |  |  |  |  |  | $ | 1,989 |
(a) |  | This revenue represents fees based on our actual costs plus a percentage of the operating profit.

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