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Segment Information
 6 Months Ended
Jun. 30, 2025
Segment Information [Abstract]  
SEGMENT INFORMATION

NOTE 14 – SEGMENT INFORMATION

 

The segment reporting structure uses the Company’s management reporting structure as its foundation to reflect how the Company manages the businesses internally.

 

During the three months ended June 30, 2025, the management reporting structure was composed of one strategic business unit, mainly organized by service, led by the Company’s President and Chief Executive Officer, who is its CODM. Using the accounting guidance on segment reporting, the Company determined that its one operating segment was aligned with its one reportable segment corresponding to its strategic business unit.

 

During the six months ended June 30, 2025, the management reporting structure was composed of two strategic business units, mainly organized by services, led by the Company’s President and Chief Executive Officer, who is its CODM. Using the accounting guidance on segment reporting, the Company determined that its two operating segments were aligned with its two reportable segments corresponding to its strategic business units.

 

During the three and six months ended June 30, 2024, the management reporting structure was composed of two strategic business units, mainly organized by services, led by the Company’s President and Chief Executive Officer, who is its CODM. Using the accounting guidance on segment reporting, the Company determined that its two operating segments were aligned with its two reportable segments corresponding to its strategic business units. 

 

On February 9, 2023, the Company purchased 40% of Lab Services MSO. During the first quarter of 2025, to preserve cash, the Company entered into discussions with Lab Services MSO for the potential redemption of our investment and on February 26, 2025, the Company and Lab Services MSO entered into a Redemption and Abandonment Agreement, whereby Lab Services MSO redeemed the 40% equity interest in Lab Services MSO held by the Company. During the three months ended June 30, 2025, the Company operated in one reportable business segment: the real property operating segment. During the six months ended June 30, 2025, the Company operated in two reportable business segments: (1) the real property operating segment, and (2) laboratory testing services segment (which ended on February 26, 2025) since Lab Services MSO’s operating results were regularly reviewed by the Company’s chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance. During the three and six months ended June 30, 2024, the Company operated in two reportable business segments: (1) the real property operating segment, and (2) laboratory testing services segment since Lab Services MSO’s operating results were regularly reviewed by the Company’s chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance. The Company regularly reviewed the operating results and performance of Lab Services MSO, which was the Company’s equity method investee.

 

The accounting policies for the segments are the same as those described in Note 3. Our reportable segments are aligned principally around the differences in services. Real property operating income is calculated by subtracting real property operating expenses from real property rental revenue; income from equity method investment – Lab Services MSO is calculated by subtracting amortization of intangible assets acquired from acquisition from the Company’s share of Lab Services MSO’s net income. The assets and certain expenses related to corporate activities are not allocated to the segments. 

 

Information with respect to these reportable business segments for the three and six months ended June 30, 2025 and 2024 was as follows:

 

   Three Months Ended June 30, 2025 
   Real Property Operations   Corporate / Other   Total 
Real property rental revenue  $350,406   $
-
   $350,406 
Real property operating expenses   (251,077)   
-
    (251,077)
Real property operating income   99,329    
-
    99,329 
Other operating expenses   (78,800)   (3,908,516)   (3,987,316)
Other (expense) income:             - 
Interest expense   (194,307)   (863,357)   (1,057,664)
Loss on extinguishment of debt   
-
    (9,076,587)   (9,076,587)
Other (expense) income   (209)   563,849    563,640 
Net loss  $(173,987)  $(13,284,611)  $(13,458,598)
   Three Months Ended June 30, 2024 
   Real Property Operations   Lab Services MSO   Corporate / Other   Total 
Real property rental revenue  $327,887   $
-
   $
-
   $327,887 
Real property operating expenses   (285,488)   
-
    
-
    (285,488)
Real property operating income   42,399    
-
    
-
    42,399 
Loss from equity method investment - Lab Services MSO   
-
    (329,337)   
-
    (329,337)
Other operating expenses   (94,054)   
-
    (1,123,371)   (1,217,425)
Other (expense) income:                    
Interest expense   (194,307)   
-
    (613,554)   (807,861)
Other (expense) income   (148)   
-
    180,346    180,198 
Net loss  $(246,110)  $(329,337)  $(1,556,579)  $(2,132,026)

 

   Six Months Ended June 30, 2025 
   Real Property Operations   Lab Services MSO   Corporate / Other   Total 
Real property rental revenue  $700,206   $
-
   $
-
   $700,206 
Real property operating expenses   (531,467)   
-
    
-
    (531,467)
Real property operating income   168,739    
-
    
-
    168,739 
Income from equity method investment - Lab Services MSO   
-
    392,677    
-
    392,677 
Other operating expenses   (169,562)   
-
    (6,086,616)   (6,256,178)
Other (expense) income:                    
Interest expense   (388,614)   
-
    (1,229,068)   (1,617,682)
Loss on extinguishment of debt   
-
    
-
    (9,076,587)   (9,076,587)
Other income   19    
-
    448,303    448,322 
Net (loss) income  $(389,418)  $392,677   $(15,943,968)  $(15,940,709)

 

   Six Months Ended June 30, 2024 
   Real Property Operations   Lab Services MSO   Corporate / Other   Total 
Real property rental revenue  $642,475   $
-
   $
-
   $642,475 
Real property operating expenses   (548,614)   
-
    
-
    (548,614)
Real property operating income   93,861    
-
    
-
    93,861 
Loss from equity method investment - Lab Services MSO   
-
    (221,868)   
-
    (221,868)
Other operating expenses   (208,341)   
-
    (2,011,077)   (2,219,418)
Other (expense) income:                    
Interest expense   (388,614)   
-
    (938,254)   (1,326,868)
Other (expense) income   (144)   
-
    174,898    174,754 
Net loss  $(503,238)  $(221,868)  $(2,774,433)  $(3,499,539)
Identifiable long-lived tangible assets at June 30, 2025 and December 31, 2024  June 30,
2025		   December 31,
2024		 
Real property operations  $6,945,877   $7,034,335 
Corporate/Other   1,015    1,298 
Total  $6,946,892   $7,035,633 

 

Identifiable long-lived tangible assets at June 30, 2025 and December 31, 2024  June 30,
2025		   December 31,
2024		 
United States  $6,945,877   $7,034,335 
China   1,015    1,298 
Total  $6,946,892   $7,035,633