Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.21.2
Segment Reporting
 6 Months Ended
Jun. 30, 2021
Segment Reporting  
Segment Reporting

Note 17. Segment Reporting

The Company identifies an operating segment as a component: (i) that engages in business activities from which it may earn revenues and incur expenses; (ii) whose operating results are regularly reviewed by the Chief Operating Decision Maker (“CODM”) to make decisions resources to be allocated to the segment and assess is performance; and (iii) that has available discrete financial information. The CODM reviews financial information at the operating segment level to allocate resources and to assess the operating results and financial performance for each operating segment.

Historically, management has not made operating decisions nor assessed performance based on geographic locations. Rather, the CODM has made operating decisions and assessed performance based on the services of identified operating segments. Prior to the acquisition of E4:9 during the three months ended June 30, 2021 which included the mortgage lending and insurance agency services, the Company aggregated its real estate brokerage services segment and its affiliated services (e.g., title insurance) segment as the profits and losses and assets of the affiliated services segment were not material.

During the three months ended June 30, 2021, the Company has identified three reportable segments: Real Estate Brokerage, Mortgage, and Technology. Through its Real Estate Brokerage segment, the Company provides real estate brokerage services. Through its Mortgage segment, the Company provides residential loan origination and underwriting services. Through its Technology segment, the Company provides SaaS solutions and data mining for third party customers to develop its intelliAgent platform for current use by the Company’s real estate agents. As a result, the Company has modified the presentation of its segment financial information with retrospective application to all prior periods presented.

Revenue and Adjusted EBITDA are the primary measures used by the CODM to evaluate financial performance of the reportable segments and to allocate resources. Adjusted EBITDA represents the revenues of the operating segment less operating expenses directly attributable to the respective operating segment. Adjusted EBITDA is defined by us as net income (loss) before depreciation and amortization, interest expense, net, income taxes, and other items. In particular, the Company believes the exclusion of non-cash share-based compensation expense related to restricted stock awards and stock options and transaction-related costs provides a useful supplemental measure in evaluating the performance of our operations and provides better transparency into our results of operations. The Company’s presentation of Adjusted EBITDA might not be comparable to similar measures used by other companies.

The Company does not allocate assets to its reportable segments as they are not included in the review performed by the CODM for purposes of assessing segment performance and allocating resources. The balance sheet is managed on a consolidated basis and is not used in the context of segment reporting.

Key operating data for the reportable segments for the three and six months ended June 30, 2021 and are set forth in the tables below. The Company has included the results of the acquisitions from the acquisition date. As such, the key operating data for the three and six months ended June 30, 2020 include only the result of the Real Estate Brokerage reportable segment.

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​

​

​

​

​

​

​

​

​

​

​

​

    

​

Revenue

​

​

​

Three months ended 

​

Six months ended

​

​

​

June 30, 

​

 June 30, 

​

    

2021

    

2020

    

2021

    

2020

​

​

​

​

​

​

​

​

​

​

​

​

​

Real Estate Brokerage

​

$

80,246,356

​

$

38,688,744

​

$

129,402,060

​

$

67,527,575

Mortgage

​

​

1,502,021

​

​

—

​

​

1,502,021

​

​

—

Technology

​

​

529,528

​

​

—

​

​

598,624

​

​

—

Corporate and other services (a)

​

​

1,905,048

​

​

—

​

​

2,325,738

​

​

—

Total Company

​

$

84,182,954

​

$

38,688,744

​

$

133,828,443

​

$

67,527,575

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​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Adjusted EBITDA

​

​

Three months ended 

​

Six months ended

​

​

June 30, 

​

 June 30, 

​

    

2021

    

2020

    

2021

    

2020

​

​

​

​

​

​

​

​

​

​

​

​

​

Real Estate Brokerage

​

$

495,507

​

$

329,446

    

$

(10,324)

    

$

464,509

Mortgage

​

​

(889,898)

​

 

—

 

 

(889,898)

 

 

—

Technology

​

​

(307,227)

​

 

—

 

 

(622,359)

 

 

—

Total Segment Adjusted EBITDA

​

​

(701,618)

​

 

329,446

 

 

(1,522,581)

 

 

464,509

Corporate and other services (a)

​

​

(1,571,353)

​

 

—

 

 

(2,792,702)

 

 

—

Total Company Adjusted EBITDA

​

$

(2,272,971)

​

$

329,446

 

$

(4,315,283)

 

$

464,509

Less:Depreciation and amortization

​

​

(744,451)

​

​

(44,496)

​

​

(846,880)

​

​

(63,771)

Other income(expense), net

​

​

33,658

​

 

(22,659)

 

 

88,014

 

 

(55,497)

Income tax benefit (expense)

​

​

2,614,925

​

 

(1,000)

 

 

2,609,925

 

 

(2,000)

Stock based compensation

​

​

(1,193,454)

​

 

(100,493)

 

 

(2,063,529)

 

 

(225,214)

Transaction-related costs

​

​

(529,071)

​

 

—

 

​

(963,399)

​

​

—

Net (loss) income

​

$

(2,091,434)

​

$

160,798

​

$

(5,491,152)

 

$

118,027
(a) Transactions between segments are eliminated in consolidation. Such amounts are eliminated through the Corporate and Other services line.

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