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Note 21 - Reportable Segments
 12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

Note 21.  Reportable Segments

 

The Company has two reportable segments: (i) e-Commerce Operations, which involves acquiring and leasing, primarily an e-commerce platform to collaborate with businesses to optimize their ability to sell their goods online, domestically, and internationally, and enabling customers and partners to optimize their e-commerce presence and revenue, and other related businesses and (ii) Healthcare Operations, which provides TPA, data management, COVID-19 related diagnostics and vaccinations, prescription pharmaceuticals, compounded medications, telepharmacy services, anti-retroviral medications, medication therapy management, the supply of prescription medications to long-term care facilities, medication adherence packaging, contracted pharmacy services for 340B covered entities under the 340B Drug Discount Pricing Program, and health practice risk management. This organizational structure aligns with how the Company’s CODMs manage the business, including resource allocation and performance assessment, and further aligns with the Company’s product categories and the key markets the Company serves.

 

The CODMs include the Company’s Chief Executive Officer and Chief Financial Officer. Additionally, the e-Commerce Operations reportable segment CODM includes the President of Global Operations and the Healthcare Operations reportable segment CODM includes the Pharmacy Chief Operating Officer.

 

The CODMs do not review segment assets and segment expenses at a level different than what is reported in the Company’s Consolidated Balance Sheets and Consolidated Statements of Comprehensive Loss. While the Company believes there are synergies between the two business segments, the segments are managed separately because each requires different business strategies. Accounting policies associated with our operating segments are generally the same as those described in Note 1.

 

The following tables provide information about the Company’s reportable segments (in thousands):

 

Year Ended December 31, 2024

 

e-Commerce Operations

  

Healthcare Operations

  

Eliminations

  

Total

 

e-Commerce revenue

 $13,791  $—  $—  $13,791 

Pharmacy prescription and other revenue, net of PBM fees

  —   41,308   —   41,308 

Pharmacy 340B contract revenue

  —   10,384   —   10,384 

Revenues, net

  13,791   51,692   —   65,483 
                 

Expenses:

                

Cost of revenue

  10,356   38,898   —   49,254 

Selling, general and administrative

  4,134   3,726   —   7,860 

Salaries, wages and payroll taxes

  2,372   9,069   —   11,441 

Impairment loss

  —   13,653   —   13,653 

Professional fees

  2,900   1,741   (240)  4,401 

Depreciation and amortization

  539   1,959   —   2,498 

Total expenses

  20,301   69,046   (240)  89,107 

Operating loss

  (6,510)  (17,354)  240   (23,624)

Interest expense

  13   68   —   81 

Other (income) expense

  (647)  (244)  240   (651)

Loss before income taxes

  (5,876)  (17,178)  —   (23,054)

Income taxes

  (71)  —   —   (71)

Net loss

 $(5,947) $(17,178) $—  $(23,125)
                 

Year Ended December 31, 2023

 

e-Commerce Operations

  

Healthcare Operations

  

Eliminations

  

Total

 

e-Commerce revenue

 $10,977  $—  $—  $10,977 

Pharmacy prescription and other revenue, net of PBM fees

  —   21,412   —   21,412 

Pharmacy 340B contract revenue

  —   5,367   —   5,367 

Revenues, net

  10,977   26,779   —   37,756 
                 

Expenses:

                

Cost of revenue

  8,122   18,323   —   26,445 

Selling, general and administrative

  6,633   3,277   —   9,910 

Salaries, wages and payroll taxes

  2,670   3,973   —   6,643 

Impairment loss

  —   13,895   —   13,895 

Professional fees

  1,595   506   (120)  1,981 

Depreciation and amortization

  647   1,463   —   2,110 

Total expenses

  19,667   41,437   (120)  60,984 

Operating loss

  (8,690)  (14,658)  120   (23,228)

Interest expense

  25   54   —   79 

Other (income) expense

  (1,072)  (64)  120   (1,016)

Loss before income taxes

  (7,643)  (14,648)  —   (22,291)

Income taxes

  (28)  —   —   (28)

Net loss

 $(7,671) $(14,648) $—  $(22,319)

 

  

e-Commerce Operations

  

Healthcare Operations

  

Eliminations

  

Total

 

Total assets as of December 31, 2024

 $19,044  $17,434  $—  $36,478 
                 

Total assets as of December 31, 2023

 $40,764  $40,384  $(16,679) $64,469 

  

Capital expenditures for the year ended December 31, 2024 were approximately $50,000 for e-Commerce Operations and $139,000 for Healthcare Operations.