14. SEGMENT REPORTING Both our Chief Executive Officer and Executive Chairman serve as the Chief Operating Decision Maker (CODM), organize the Company, manage resource allocations and measure performance among two operating and reportable segments: (i) Healthcare IT and (ii) Practice Management. The Healthcare IT segment includes revenue cycle management, SaaS solutions and other services. The Practice Management segment includes the management of three medical practices. Each segment is considered a reporting unit. The CODM evaluates financial performance of the business units on the basis of revenue and direct operating costs excluding unallocated amounts, which 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 Companys Annual Report on Form 10-K for the year ended December 31, 2019 filed with the SEC on February 28, 2020. The following tables present revenues, operating expenses and operating (loss) income by reportable segment: Nine Months Ended September 30, 2020 Healthcare IT Practice Management Unallocated Corporate Expenses Total Net revenue $ 64,158,133 $ 8,926,442 $ - $ 73,084,575 Operating expenses: Direct operating costs 39,073,783 6,768,005 - 45,841,788 Selling and marketing 4,752,713 25,105 - 4,777,818 General and administrative 11,067,480 1,492,865 4,616,248 17,176,593 Research and development 6,846,014 - - 6,846,014 Change in contingent consideration (500,000 ) - - (500,000 ) Depreciation and amortization 6,705,215 238,490 - 6,943,705 Impairment and unoccupied lease charges 681,400 - - 681,400 Total operating expenses 68,626,605 8,524,465 4,616,248 81,767,318 Operating (loss) income $ (4,468,472 ) $ 401,977 $ (4,616,248 ) $ (8,682,743 ) Three Months Ended September 30, 2020 Healthcare IT Practice Management Unallocated Corporate Expenses Total Net revenue $ 28,191,057 $ 3,447,559 $ - $ 31,638,616 Operating expenses: Direct operating costs 17,147,137 2,571,244 - 19,718,381 Selling and marketing 1,563,255 8,168 - 1,571,423 General and administrative 4,173,350 468,172 1,549,486 6,191,008 Research and development 2,366,560 - - 2,366,560 Change in contingent consideration (500,000 ) - - (500,000 ) Depreciation and amortization 3,126,508 79,497 - 3,206,005 Impairment and unoccupied lease charges 320,575 - - 320,575 Total operating expenses 28,197,385 3,127,081 1,549,486 32,873,952 Operating (loss) income $ (6,328 ) $ 320,478 $ (1,549,486 ) $ (1,235,336 ) Nine Months Ended September 30, 2019 Healthcare IT Practice Management Unallocated Corporate Expenses Total Net revenue $ 38,518,361 $ 10,162,677 $ - $ 48,681,038 Operating expenses: Direct operating costs 23,912,120 7,867,444 - 31,779,564 Selling and marketing 1,065,750 25,774 - 1,091,524 General and administrative 8,549,122 1,504,506 3,704,177 13,757,805 Research and development 648,822 - - 648,822 Change in contingent consideration (343,768 ) - - (343,768 ) Depreciation and amortization 2,170,204 236,907 - 2,407,111 Restructuring and impairment charges 136,332 - - 136,332 Total operating expenses 36,138,582 9,634,631 3,704,177 49,477,390 Operating income (loss) $ 2,379,779 $ 528,046 $ (3,704,177 ) $ (796,352 ) Three Months Ended September 30, 2019 Healthcare IT Practice Management Unallocated Corporate Expenses Total Net revenue $ 12,938,042 $ 3,913,286 $ - $ 16,851,328 Operating expenses: Direct operating costs 7,508,208 3,027,421 - 10,535,629 Selling and marketing 339,603 7,965 - 347,568 General and administrative 2,791,573 548,746 1,111,656 4,451,975 Research and development 175,758 - - 175,758 Change in contingent consideration (279,565 ) - - (279,565 ) Depreciation and amortization 735,133 79,077 - 814,210 Restructuring and impairment charges 136,332 - - 136,332 Total operating expenses 11,407,042 3,663,209 1,111,656 16,181,907 Operating income (loss) $ 1,531,000 $ 250,077 $ (1,111,656 ) $ 669,421