VSEE HEALTH, INC. Segments Disclosure
Note 14 Reportable segments
Subsequent to the Business Combination in June 2024 (see Note 3 - Business Combination), the Company has two reportable segments: Technology and Telehealth. These two reportable segments align with the two legacy operating entities (VSee Lab and iDoc) which merged together upon the closing of the Business Combination. Operating segments are defined as components of an enterprise where separate financial information is evaluated regularly by a chief operating decision maker (“CODM”) in deciding how to allocate resources and assess performance. As of December 31, 2025, the Company’s CODM role was shared between the two Co-CEOs.
The CODM reviews gross margin and income (loss) from operations from our reportable segments to evaluate budgets and forecasts, assess actual performance and allocate resources. The CODM review focuses on month to month and quarter to quarter changes in these profit measures in order to identify potential future liquidity issues, evaluate performance and need for potential cost reductions and identify potential vendor sourcing changes. The CODM also reviews the operating segment’s assets, which mainly includes review of the accounts receivable accounts.
Our reportable segments are described below. The Company has no inter-segment revenues.
Telehealth Services – The Company’s proprietary technology platform and modular software solution empower users to plug and play telehealth services with end-to-end encrypted video streaming integrated with medical device data, electronic medical records, and other sensitive data, with multiple other interactive functionalities that enable teamwork that the Company believes are not available from any other system worldwide.
Healthcare Technology - The Company’s core platform is a highly scalable, integrated, application program interface (“API”) driven technology platform, for virtual healthcare delivery, with multiple real-time integrations spanning the healthcare ecosystem. The platform’s APIs power external connectivity and deep integration with a wide range of payors, electronic medical records, third-party applications, and other interfaces with employers, hospital systems, and health systems, which we believe uniquely positions us as a long-term partner meeting the unique needs of the rapidly changing healthcare industry. The Company will also be able to white label our solutions, so they fit into the plans and strategies of our clients, all on a platform that is high-performance and highly scalable.
The accounting policies of our reportable segments are the same as those described in the “Summary of Significant Accounting Policies” for the Company. In addition, the Company currently operates in one primary geographic area (the United States) and as such, the disclosures below are attributable to that geographic area.
Revenue and costs are generally directly attributed to our segments, based on the historical separation of these two operating segments (as prior separate operating entities). In addition, the Company incurs certain costs at the corporate level, which generally include legal, finance and accounting and consulting, investor relations and insurance costs, as well as certain executive compensation costs. These costs recorded at the corporate level are not allocated to the operating segments and are reflected as the “Unallocated corporate overhead expenses” in the summary tables below.
Summary information regarding the Company’s operating segments along with the reconciliation of the Company’s consolidated segment operating income to consolidated earnings before income taxes is as follows for the years ended December 31, 2025 and December 31, 2024:
| For the year ended December 31, 2025 | Technology | Telehealth | Total | |||||||||
| Revenues: | ||||||||||||
| Subscription fees | $ | 3,230,239 | $ | - | $ | 3,230,239 | ||||||
| Professional services and other fees | 3,102,688 | - | 3,102,688 | |||||||||
| Technical engineering fees | 1,042,593 | - | 1,042,593 | |||||||||
| Patient fees | - | 3,377,536 | 3,377,536 | |||||||||
| Telehealth fees | - | 3,862,628 | 3,862,628 | |||||||||
| Institutional fees | - | 2,500 | 2,500 | |||||||||
| Total revenues | $ | 7,375,520 | $ | 7,242,664 | $ | 14,618,184 | ||||||
| Cost of revenues | 3,901,877 | 3,360,342 | 7,262,219 | |||||||||
| Segment gross margin | $ | 3,473,643 | $ | 3,882,322 | $ | 7,355,965 | ||||||
| Less (1): | ||||||||||||
| Compensation and related benefits | 4,220,844 | 1,628,391 | 5,849,235 | |||||||||
| General and administrative | 1,272,972 | 5,222,558 | 6,495,530 | |||||||||
| Segment operating loss | $ | (2,020,173 | ) | $ | (2,968,627 | ) | $ | (4,988,800 | ) | |||
| Reconciliation to loss before provision for income taxes: | ||||||||||||
| Unallocated corporate overhead expenses | (4,594,093 | ) | ||||||||||
| Interest expense | (2,811,861 | ) | ||||||||||
| Other income, net | 47,429 | |||||||||||
| Change in fair value of financial instruments | (1,450,271 | ) | ||||||||||
| Loss on extinguishment of debt | (221,202 | ) | ||||||||||
| Loss on issuance of financial instruments | (668,020 | ) | ||||||||||
| Gain on extinguishment of ELOC | 42,394 | |||||||||||
| Loss before provision for income taxes | $ | (14,644,424 | ) | |||||||||
| (1) | The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. |
| For the year ended December 31, 2024 | Technology | Telehealth | Total | |||||||||
| Revenues: | ||||||||||||
| Subscription fees | $ | 4,115,126 | $ | - | $ | 4,115,126 | ||||||
| Professional services and other fees | 2,108,307 | - | 2,108,307 | |||||||||
| Technical engineering fees | 1,980,186 | - | 1,980,186 | |||||||||
| Patient fees | - | 1,207,343 | 1,207,343 | |||||||||
| Telehealth fees | - | 1,003,510 | 1,003,510 | |||||||||
| Institutional fees | - | 6,880 | 6,880 | |||||||||
| Total revenues | $ | 8,203,619 | $ | 2,217,733 | $ | 10,421,352 | ||||||
| Cost of revenues | 2,241,096 | 1,002,676 | 3,243,772 | |||||||||
| Segment gross margin | $ | 5,962,523 | $ | 1,215,057 | $ | 7,177,580 | ||||||
| Less (1): | ||||||||||||
| Compensation and related benefits | 3,751,534 | 876,558 | 4,628,092 | |||||||||
| General and administrative expenses | 1,854,796 | 2,397,735 | 4,252,531 | |||||||||
| Transaction expenses | 93,000 | - | 93,000 | |||||||||
| Goodwill impairment | - | 56,675,210 | 56,675,210 | |||||||||
| Segment operating income (loss) | $ | 263,193 | $ | (58,734,446 | ) | $ | (58,471,253 | ) | ||||
| Reconciliation to loss before benefit from income taxes: | ||||||||||||
| Unallocated corporate overhead expenses | (3,679,592 | ) | ||||||||||
| Interest expense | (211,459 | ) | ||||||||||
| Other income | 504 | |||||||||||
| Change in fair value of financial instruments | 6,176,097 | |||||||||||
| Loss on extinguishment of debt | (645,979 | ) | ||||||||||
| Loss on issuance of financial instruments | (2,513,234 | ) | ||||||||||
| Loss before benefit from income taxes | $ | (59,344,916 | ) | |||||||||
| (1) | The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. |
The summary information regarding the reportable segment total assets at December 31, 2025, and December 31, 2024, are as follows:
| December 31, 2025 | December 31, 2024 | |||||||
| Total assets: | ||||||||
| Technology | $ | 664,525 | $ | 1,503,995 | ||||
| Telehealth | 17,150,543 | 18,271,724 | ||||||
| Non-operating corporate | 4,597,951 | 216,769 | ||||||
| Total | $ | 22,413,019 | $ | 19,992,488 | ||||
| December 31, 2025 | December 31, 2024 | |||||||
| Total Goodwill: | ||||||||
| Technology | $ | - | $ | - | ||||
| Telehealth | 4,916,694 | 4,916,694 | ||||||
| Non-operating corporate | - | - | ||||||
| Total | $ | 4,916,694 | $ | 4,916,694 | ||||
Some additional summary information regarding the reportable segment depreciation and amortization, capital expenditures and interest expense for the years ended December 31, 2025, and 2024 are as follows:
| December 31, 2025 | December 31, 2024 | |||||||
| Depreciation and Amortization: | ||||||||
| Technology | $ | 11,395 | $ | 4,680 | ||||
| Telehealth | 2,576,161 | 1,318,787 | ||||||
| Total | $ | 2,587,556 | $ | 1,323,467 | ||||
| December 31, 2025 | December 31, 2024 | |||||||
| Capital Expenditures: | ||||||||
| Technology | $ | 29,928 | $ | 20,117 | ||||
| Telehealth | - | 35,150 | ||||||
| Total | $ | 29,928 | $ | 55,267 | ||||
| December 31, 2025 | December 31, 2024 | |||||||
| Interest Expense: | ||||||||
| Technology | $ | 64,170 | $ | 77,128 | ||||
| Telehealth | 250,764 | 133,131 | ||||||
| Non-Operating corporate | 2,496,927 | 1,200 | ||||||
| Total | $ | 2,811,861 | $ | 211,459 | ||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 31, 2026 | Showing above |
| 2024 | Aug 28, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.