XML 31 R22.htm IDEA: XBRL DOCUMENT v3.22.2.2
SEGMENT RESULTS
 9 Months Ended
Sep. 30, 2022
SEGMENT RESULTS [Abstract]  
SEGMENT RESULTS
Note 16
SEGMENT RESULTS

The Company provides innovative software solutions, proprietary data and predictive analytics to optimize the operational, clinical and financial performance of its customers within the healthcare and cannabis industries.

ASC 280 requires that public companies report profits and losses and certain other information on their “reportable operating segments” in their annual and interim financial statements. The internal organization used by the public company’s Chief Operating Decision Maker (CODM) to assess performance and allocate resources determines the basis for reportable operating segments. The Company’s CODM is the Chief Executive Officer. The CODM evaluates financial performance based on Revenues and Operating Income. The CODM does not review assets by operating segment for the purposes of assessing performance or allocated resources.

The Company has three operating and reportable segments, which are consistent with its reporting units as follows:

The “Information and Software” segment licenses information and software products to customers. Revenues in this segment are currently derived from customers in the healthcare or cannabis industries; however, the Company’s information may be licensed to other customer segments as the Company leverages its analytics platform.

The “Services” segment provides implementation, support and training on a contractual basis to customers. Revenues in this segment are primarily generated from the operation of cannabis related “seed to sale” traceability platforms for government entities.

The “Other” segment consists of certain other business operations, primarily in security and marketing services.

The following represents selected information for the Company’s reportable segments:

   
For the Three Months
Ended September 30,
    
For the Nine Months
Ended September 30,
  
   
2022
    
2021
    
2022
    
2021
  
Information and Software
                        
Revenue
  
$
6,780,680
    
$
4,489,177
    
$
18,674,213
    
$
9,661,826
  
Costs and expenses
    
7,229,791
      
7,661,631
      
22,035,166
      
17,813,947
  
Loss from operations
  
$
(449,111
)
  
$
(3,172,454
)
  
$
(3,360,953
)
  
$
(8,152,121
)
Total other income/(expense)
    
—
      
—
      
—
      
—
  
Loss before income taxes
  
$
(449,111
)
  
$
(3,172,454
)
  
$
(3,360,953
)
  
$
(8,152,121
)
                                 
Services
                                
Revenue
  
$
341,173
    
$
269,753
    
$
1,168,034
    
$
858,400
  
Costs and expenses
    
270,172
      
369,507
      
869,525
      
755,627
  
Income (loss) from operations
  
$
71,001
    
$
(99,754
)
  
$
298,509
    
$
102,773
  
Total other income/(expense)
    
—
      
—
      
—
      
—
  
Income (loss) before income taxes
  
$
71,001
    
$
(99,754
)
  
$
298,509
    
$
102,773
  
                                 
                                 
Other
                                
Revenue
  
$
54,475
    
$
202,825
    
$
259,618
    
$
610,123
  
Costs and expenses
    
137,465
      
228,014
      
559,342
      
698,001
  
Loss from operations
  
$
(82,990
)
  
$
(25,189
)
  
$
(299,724
)
  
$
(87,878
)
Total other income/(expense)
    
—
      
(275
)
    
50
      
(607
)
Loss before income taxes
  
$
(82,990
)
  
$
(25,464
)
  
$
(299,674
)
  
$
(88,485
)
                                 
Centrally Managed Costs
                                
Revenue
  
$
—
    
$
—
    
$
—
    
$
—
  
Costs and expenses
    
4,490,257
      
4,051,504
      
19,096,021
      
11,313,140
  
Loss from operations
  
$
(4,490,257
)
  
$
(4,051,504
)
  
$
(19,096,021
)
  
$
(11,313,140
)
Total other income/(expense)
    
(166,267
)
    
327,454
      
62,882
      
948,658
  
Loss before income taxes
  
$
(4,656,524
)
  
$
(3,724,050
)
  
$
(19,033,139
)
  
$
(10,364,482
)
Income tax expense
    (10,000 )     —       (20,000 )     —  
Net loss
   $ (4,666,524 )   $ (3,724,050 )   $ (19,053,139 )   $ (10,364,482 )
                                 
Totals
                                
Revenue
  
$
7,176,328
    
$
4,961,755
    
$
20,101,865
    
$
11,130,349
  
Costs and expenses
    
12,127,685
      
12,310,656
      
42,560,054
      
30,580,715
  
Loss from operations
  
$
(4,951,357
)
  
$
(7,348,901
)
  
$
(22,458,189
)
  
$
(19,450,366
)
Total other income/(expense)
    
(166,267
)
    
327,179
      
62,932
      
948,051
  
Loss before income taxes
   $ (5,117,624 )   $ (7,021,722 )   $ (22,395,257 )   $ (18,502,315 )
Income tax expense
     (10,000 )     —       (20,000 )     —  
Net loss
  
$
(5,127,624
)
  
$
(7,021,722
)
  
$
(22,415,257
)
  
$
(18,502,315
)

Approximately 99% of the Company’s revenues were attributable to customers in the United States for the three and nine months ended September 30, 2022. Approximately 97% of revenues were attributable to customers in the United States for the three and nine months ended September 30, 2021.