10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q/A

(Amendment No. 1)

(Mark One)

x      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 

For the quarterly period ended September 30, 2015

¨      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

Commission File No.

000-25809

Apollo Medical Holdings, Inc.

(Exact name of registrant as specified in its charter)

Delaware	46-3837784
State of Incorporation	IRS Employer Identification No.

700 North Brand Blvd., Suite 1400

Glendale, California 91203

(Address of principal executive offices)

(818) 396-8050

(Issuer’s telephone number) 

(Former name, former address and former fiscal year, if changed since last report)

Securities Registered Pursuant to Section 12(b) of the Act:

Title of each Class	Name of each Exchange on which Registered
	None

Securities Registered Pursuant to Section 12(g) of the Act:

Common Stock, $.001 Par Value

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days:   x  Yes     ¨   No.

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).     x  Yes     ¨   No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.

Large accelerated filer       ¨	Accelerated filer       ¨
Non-accelerated filer         ¨	Smaller reporting company      x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act):    ¨  Yes      x   No

As of November 10, 2015, there were 4,863,389 shares of common stock, $.001 par value per share, issued and outstanding.

Explanatory Note

Apollo Medical Holdings, Inc. (the “Company”) is filing this Amendment No. 1 to its Quarterly Report on Form 10-Q for the quarter ended September 30, 2015, filed with the Securities and Exchange Commission on November 16, 2015 (“Form 10-Q”), for the sole purpose of submitting Exhibit 101 to the Form 10-Q. Exhibit 101 consists of the Interactive Data Files for the Company’s Form 10-Q for the quarter ended September 30, 2015.

No other changes have been made to the Form 10-Q. This Amendment No. 1 speaks only as of the original filing date of the Form 10-Q, does not reflect events that may have occurred subsequent to such original filing date and does not modify or update in any way disclosures made in the Form 10-Q.

ITEM 6.  EXHIBITS

Exhibit No.	Description
3.1**	Certificate of Incorporation, as amended on October 16, 2015
3.2**	Restated Bylaws, as amended on October 12, 2015

Exhibit No.	Description
31.1*	Certification by Chief Executive Officer
31.2*	Certification by Chief Financial Officer
32.1*	Certification by Chief Executive Officer pursuant to 18 U.S.C. section 1350.
32.2*	Certification by Chief Financial Officer pursuant to 18 U.S.C. section 1350
101.INS*	XBRL Instance Document.
101.SCH*	XBRL Taxonomy Extension Schema Document.
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF*	XBRL Taxonomy Extension Definition Linkbase
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document.

*   Filed herewith.

** Previously Filed

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	APOLLO MEDICAL HOLDINGS, INC.
Dated:  November 16, 2015	By:	/s/ William R. Abbott
		William R. Abbott
		Chief Financial Officer
		(Principal Financial and Accounting Officer)

EX-31.1

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER AND

PRINCIPAL ACCOUNTING OFFICER

PURSUANT TO SECTION 302 OF THE

SARBANES-OXLEY ACT OF 2002

I, Warren Hosseinion, Chief Executive Officer, certify that:

1.    I have reviewed this report on Form 10-Q/A of Apollo Medical Holdings, Inc.

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this quarterly  report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    Apollo Medical Holdings, Inc. other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;

5.    Apollo Medical Holdings, Inc. other certifying officer and I are have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function):

a) all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial data; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Dated: November 16, 2015	By:	Warren Hosseinion M.D.
		/s/ Warren Hosseinion M.D.
		Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER AND

PRINCIPAL ACCOUNTING OFFICER

PURSUANT TO SECTION 302 OF THE

SARBANES-OXLEY ACT OF 2002

I, William Abbott, Chief Financial Officer, certify that:

1.    I have reviewed this report on Form 10-Q/A of Apollo Medical Holdings, Inc.

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this quarterly  report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    Apollo Medical Holdings, Inc. other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)	evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;
d)	disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;

5.    Apollo Medical Holdings, Inc. other certifying officer and I are have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function):

a) all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial data; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Dated:    November 16, 2015	By:	William R. Abbott
		/s/ William R. Abbott
		Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Report of Apollo Medical Holdings, Inc. (the “Company”) on Form 10-Q/A for the three months ended September 30, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Warren Hosseinion, Chief Executive Officer of the Company, certify that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

The foregoing certification is being furnished solely to accompany the Report pursuant to 18 U.S.C. section 1350 and is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

Dated:  November 16, 2015	By:	Warren Hosseinion M.D.
		/s/ Warren Hosseinion M.D.
		Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Report of Apollo Medical Holdings, Inc. (the “Company”) on Form 10-Q/A for the three months ended September 30, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, William Abbott, Chief Financial Officer and Principal Accounting Officer of the Company, certify, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

The foregoing certification is being furnished solely to accompany the Report pursuant to 18 U.S.C. section 1350 and is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

Dated:  November 16, 2015	By:	William R. Abbott
		/s/ William R. Abbott
		Chief Financial Officer

XML

Notes and Lines of Credit Payable (Detail) - USD ($)	Sep. 30, 2015	Mar. 31, 2015
Senior Secured Note [Line Items]
Notes and Loans Payable	$ 7,282,448	$ 6,561,862
Revolving Credit Facility
Senior Secured Note [Line Items]
Notes and Loans Payable	94,764	94,764
Loans Payable
Senior Secured Note [Line Items]
Notes and Loans Payable	6,187,684	5,467,098
Line of Credit
Senior Secured Note [Line Items]
Notes and Loans Payable	$ 1,000,000	$ 1,000,000

XML

Subsequent Events - Additional Information (Detail)	Oct. 15, 2015 USD ($) shares	Oct. 14, 2015 USD ($) $ / shares shares	Oct. 14, 2014 USD ($) a	Jul. 21, 2014 shares
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares				100,000
Lessee Leasing Arrangements Operating Leases Extended Term Of Contract			6 years
Operating Leases, Rent Expense, Minimum Rentals			$ 37,913
Operating Leases, Rent Expense, Contingent Rentals			$ 43,957
Debt Instrument, Face Amount	$ 7,282,500
Receivable with Imputed Interest, Face Amount	$ 22,006
New Premises [Member]
Area of Land | a			16,484
Allowance Provided By Landlord For Lease hold Improvement			$ 659,360
New Premises [Member] | Minimum [Member]
Operating Leases, Rent Expense, Contingent Rentals			$ 228,049
Private Placement [Member]
Stock Issued During Period, Shares, New Issues | shares		1,111,111
Stock Issued During Period, Value, New Issues		$ 10,000,000
Subsequent Event [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares		$ 9.00
Error Corrections and Prior Period Adjustments, Description		At any time prior to conversion and through the Redemption Expiration Date, the Preferred Stock may be redeemed at the option of NMM, on one occasion, in the event that the Companys net revenues for the four quarters ending September 30, 2016, as reported in its periodic filings under the Securities Exchange Act of 1934, as amended, are less than $60,000,000.
Interest Rate of From Notice of Redemption		10.00%
Debt Conversion, Converted Instrument, Shares Issued | shares	275,000
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares	325,000
Debt Conversion, Converted Instrument, Amount	$ 2,000,000
Subsequent Event [Member] | NNA 8 Convertible Notes [Member]
Long-term Line of Credit	$ 7,304,506
Subsequent Event [Member] | Private Placement [Member]
Preferred Stock, Liquidation Preference Per Share | $ / shares		$ 9.00
Series A Preferred Stock [Member] | Subsequent Event [Member] | Private Placement [Member]
Stock Issued During Period, Shares, New Issues | shares		1,111,111
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares		$ 9.00
Stock Issued During Period, Value, New Issues		$ 10,000,000

XML

Summary of Restricted Stock Award (Detail) - $ / shares	6 Months Ended	12 Months Ended
	Sep. 30, 2015	Mar. 31, 2015
Schedule Of Share Based Compensation Restricted Stock Units Award Activity [Line Items]
Shares,Balance, Beginning	3,752,004
Shares,Granted	0
Shares,Released	0
Shares,Balance, Ending	3,752,004	3,752,004
Vested and exercisable	3,651,675
Balance, Weighted Average Remaining Vesting Life (Years)	0 years	1 month 6 days
Balance, Weighted Average Remaining Vesting Life, Granted	0 years
Balance, Weighted Average Remaining Vesting Life, Released	0 years
Weighted Average Per Share Intrinsic Value, Balance, Beginning	$ 0.70
Weighted Average Per Share Intrinsic Value, Granted	0
Weighted Average Per Share Intrinsic Value, Released	0
Weighted Average Per Share Intrinsic Value, Balance, Ending	0.70	$ 0.70
Weighted Average Per Share Fair Value, Balance, Beginning	0.07
Weighted Average Per Share Fair Value, Granted	0
Weighted Average Per Share Fair Value, Released	0
Weighted Average Per Share Fair Value, Balance, Ending	$ 0.07	$ 0.07

XML

Summary of Company's Restricted Stock (Detail) - $ / shares	6 Months Ended	12 Months Ended
	Sep. 30, 2015	Mar. 31, 2015
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items]
Unvested or unlapsed shares, Shares	12,222
Granted, Shares	0
Vested / lapsed, Shares	(6,111)
Forfeited, Shares	0
Unvested or unlapsed shares, Shares	6,111	12,222
Unvested or unlapsed shares, Average Life (In Years)	3 months 18 days	3 months 18 days
Vested / lapsed, Average Life (In Years)	0 years
Forfeited, Average Life (In Years)	0 years
Unvested or unlapsed shares, Average Intrinsic Value	$ 0.50
Forfeited, Average Intrinsic Value	0
Unvested or unlapsed shares, Average Intrinsic Value	0.81	$ 0.50
Unvested or unlapsed shares, Fair Value	4.10
Forfeited, Fair Value	0
Unvested or unlapsed shares, Fair Value	$ 4.10	$ 4.10

XML

SCHC and AKM for a total cash consideration (Details) - USD ($)	6 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Business Acquisition [Line Items]
Less: cash acquired	$ (620,960)
Total	0	$ 1,947,431
Southern California Heart Centers [Member]
Business Acquisition [Line Items]
Payments to Acquire Businesses, Gross	2,428,391
AKM Medical Group, Inc [Member]
Business Acquisition [Line Items]
Payments to Acquire Businesses, Gross	$ 140,000

XML

Description of Business - Additional Information (Detail) - USD ($)		6 Months Ended		12 Months Ended
	Oct. 14, 2015	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014	Mar. 31, 2015
Description Of Business [Line Items]
Retained Earnings (Accumulated Deficit), Total		$ (22,354,252)			$ (19,340,521)
Net Cash Provided by (Used in) Operating Activities, Continuing Operations		(328,830)	$ (2,122,257)
Cash		$ 3,924,922
Subsequent Event [Member]
Description Of Business [Line Items]
Private Offering Securities	1,111,111
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 9.00
Proceeds from Issuance of Common Stock	$ 10,000,000
Debt Instrument, Periodic Payment, Principal	7,282,500
Debt Instrument, Periodic Payment, Interest	$ 22,006
ApolloMed ACO [Member]
Description Of Business [Line Items]
Benchmark Expenditure				$ 3,900,000
Percentage of Quality Score				90.40%

XML

Summary of Stock-Based Compensation Expense Related to Common Stock and Common Stock Option Awards (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Summary Of Stock Based Compensation Expense Related To Common Stock and Common Stock Option Awards [Line Items]
Stock-based compensation expense	$ 68,886	$ 856,519	$ 152,733	$ 975,658
Cost of services
Summary Of Stock Based Compensation Expense Related To Common Stock and Common Stock Option Awards [Line Items]
Stock-based compensation expense	1,227	(17,822)	2,454	10,921
General and administrative
Summary Of Stock Based Compensation Expense Related To Common Stock and Common Stock Option Awards [Line Items]
Stock-based compensation expense	$ 67,659	$ 874,341	$ 150,279	$ 964,737

XML

Convertible Notes Payable - Additional Information (Detail) - USD ($)		1 Months Ended	6 Months Ended
	Oct. 15, 2015	Jul. 31, 2014	Sep. 30, 2015	Sep. 30, 2014	Oct. 14, 2015	Mar. 31, 2015	Jul. 21, 2014	Mar. 28, 2014
Debt conversion description [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights							100,000
Debt Instrument, Face Amount	$ 7,282,500
Debt Instrument, Unamortized Discount			$ 217,316			$ 1,060,401		$ 990,838
Debt Instrument, Convertible, Beneficial Conversion Feature			0	$ 578,155
Subsequent Event [Member]
Debt conversion description [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	325,000
Class of Warrant or Right, Exercise Price of Warrants or Rights					$ 9.00
8% Senior Subordinated Convertible Notes due February 1, 2015
Debt conversion description [Line Items]
Debt Instrument, Unamortized Discount			$ 913,904			985,255
9% Senior Subordinated Convertible Notes due February 15, 2016
Debt conversion description [Line Items]
Convertible notes payable, interest payment terms			If the Average Daily Value of Trades (ADVT) during the prior 90 days as reported by Bloomberg is greater than $100,000, the 9% Notes are callable at a price of 105% of the 9% Notes par value, and if the ADVT is less than $100,000, the 9% Notes are callable at a price of 110% of the 9% Notes par value.
Debt conversion, price per share of common stock			$ 4.00
Class of Warrant or Right, Number of Securities Called by Warrants or Rights			66,000
Class of Warrant or Right, Exercise Price of Warrants or Rights			$ 4.50
Debt Instrument, Unamortized Discount			$ 24,770			$ 62,182
Convertible notes, interest rate			9.00%
Fair Value Assumptions, Expected Term			5 years
Fair Value Assumptions, Risk Free Interest Rate			0.70%
Fair Value Assumptions, Expected Volatility Rate			36.70%
Redemption Notice Period			60 days
Notes Payable, Fair Value Disclosure			$ 186,897
NNA Financing 8 Convertible Note
Debt conversion description [Line Items]
Debt conversion, price per share of common stock		$ 10.00
Debt Instrument, Face Amount			$ 2,000,000
Debt Instrument, Unused Borrowing Capacity, Amount		$ 2,000,000
Proceeds from Issuance of Debt		2,000,000
Debt Instrument, Unamortized Discount		$ 1,065,775
Convertible notes, interest rate		8.00%
Debt Instrument, Convertible, Beneficial Conversion Feature		$ 578,155
Fair Value Assumptions, Expected Term			3 years 8 months 12 days
Fair Value Assumptions, Risk Free Interest Rate			1.30%
Fair Value Assumptions, Expected Volatility Rate			48.60%
Share Price			$ 6.90
NNA Financing 8 Convertible Note | Common Stock
Debt conversion description [Line Items]
Percentage For Down round financing			100.00%
NNA Financing 8 Convertible Note | Warrant
Debt conversion description [Line Items]
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right			100,000
NNA 8 Convertible Notes
Debt conversion description [Line Items]
Debt conversion, price per share of common stock			$ 10.00
Fair Value Assumptions, Expected Term			5 years 8 months 12 days
Fair Value Assumptions, Risk Free Interest Rate			1.80%
Fair Value Assumptions, Expected Volatility Rate			57.60%
Share Price			$ 6.90
Stock Issued			$ 100,000
NNA 8 Convertible Notes | Subsequent Event [Member]
Debt conversion description [Line Items]
Long-term Line of Credit	$ 7,304,506
Line of Credit Facility, Annual Principal Payment	7,282,500
Line of Credit Facility, Periodic Payment, Interest	$ 22,006

XML

Accounts Payable and Accrued Liabilities (Detail) - USD ($)	Sep. 30, 2015	Mar. 31, 2015
Account Payable And Accrued Liabilities [Line Items]
Accounts payable	$ 2,780,757	$ 1,377,817
Physician share of MSSP	62,000	62,000
Accrued compensation	1,732,178	1,469,132
Income taxes payable	105,110	185,051
Accrued interest	105,131	55,529
Accrued professional fees	159,294	202,675
Accounts payable and accrued liabilities	$ 4,944,470	$ 3,352,204

XML

Warrants (Detail)	6 Months Ended
	Sep. 30, 2015 $ / shares shares
Class of Warrant or Right [Line Items]
Warrants outstanding	914,500
Weighted average remaining contractual life	3 years 9 months 18 days
Warrants exercisable	414,500
Weighted average exercise price per share | $ / shares	$ 4.60
Warrant Exercise Price Range One 1.15
Class of Warrant or Right [Line Items]
Exercise Price Per Share | $ / shares	$ 1.15
Warrants outstanding	125,000
Weighted average remaining contractual life	9 months 18 days
Warrants exercisable	125,000
Weighted average exercise price per share | $ / shares	$ 1.15
Warrant Exercise Price Range Two 1.15
Class of Warrant or Right [Line Items]
Exercise Price Per Share | $ / shares	$ 1.15
Warrants outstanding	25,000
Weighted average remaining contractual life	9 months 18 days
Warrants exercisable	25,000
Weighted average exercise price per share | $ / shares	$ 1.15
Warrant Exercise Price Range Three 4.50
Class of Warrant or Right [Line Items]
Exercise Price Per Share | $ / shares	$ 4.50
Warrants outstanding	50,000
Weighted average remaining contractual life	9 months 18 days
Warrants exercisable	50,000
Weighted average exercise price per share | $ / shares	$ 4.50
Warrant Exercise Price Range Four 5.00
Class of Warrant or Right [Line Items]
Exercise Price Per Share | $ / shares	$ 5.00
Warrants outstanding	10,000
Weighted average remaining contractual life	2 years 1 month 6 days
Warrants exercisable	10,000
Weighted average exercise price per share | $ / shares	$ 5.00
Warrant Exercise Price Range Five 4.50
Class of Warrant or Right [Line Items]
Exercise Price Per Share | $ / shares	$ 4.50
Warrants outstanding	82,500
Weighted average remaining contractual life	2 years 3 months 18 days
Warrants exercisable	82,500
Weighted average exercise price per share | $ / shares	$ 4.50
Warrant Exercise Price Range Six 4.00
Class of Warrant or Right [Line Items]
Exercise Price Per Share | $ / shares	$ 4.00
Warrants outstanding	22,000
Weighted average remaining contractual life	2 years 3 months 18 days
Warrants exercisable	22,000
Weighted average exercise price per share | $ / shares	$ 4.00
Warrant Exercise Price Range Seven 10.00
Class of Warrant or Right [Line Items]
Exercise Price Per Share | $ / shares	$ 10.00
Warrants outstanding	200,000
Weighted average remaining contractual life	5 years 6 months
Warrants exercisable	0
Weighted average exercise price per share | $ / shares	$ 10.00
Warrant Exercise Price Range Eight 20.00
Class of Warrant or Right [Line Items]
Exercise Price Per Share | $ / shares	$ 20.00
Warrants outstanding	200,000
Weighted average remaining contractual life	5 years 6 months
Warrants exercisable	0
Weighted average exercise price per share | $ / shares	$ 20.00
Warrant Exercise Price Range Nine 10.00
Class of Warrant or Right [Line Items]
Exercise Price Per Share | $ / shares	$ 10.00
Warrants outstanding	100,000
Weighted average remaining contractual life	5 years 6 months
Warrants exercisable	0
Weighted average exercise price per share | $ / shares	$ 10.00
Warrant Exercise Price Range Ten 10.00
Class of Warrant or Right [Line Items]
Exercise Price Per Share | $ / shares	$ 10.00
Warrants outstanding	100,000
Weighted average remaining contractual life	2 years 9 months 18 days
Warrants exercisable	100,000
Weighted average exercise price per share | $ / shares	$ 10.00

XML

Stock Option Activity (Detail) - $ / shares	6 Months Ended	12 Months Ended
	Sep. 30, 2015	Mar. 31, 2015
Shares
Beginning balance	776,500
Granted	0
Cancelled	0
Exercised	0
Expired	0
Forfeited	0
Ending balance	776,500	776,500
Vested and exercisable	675,431
Weighted Average Per Share Exercise Price
Beginning balance	$ 4.69
Ending balance	4.69	$ 4.69
Vested and exercisable	$ 2.39
Weighted Average Remaining Life (Years)
Balance	7 years 2 months 12 days	7 years 4 months 24 days
Vested and exercisable	5 years
Weighted Average Per Share Intrinsic Value
Beginning Balance	$ 1.50
Ending balance	6.16	$ 1.50
Vested and exercisable	$ 4.67

XML

Intangible Assets

6 Months Ended

Sep. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

4. Intangible Assets

Intangible assets, net consisted of the following:

			Accumulated
September 30, 2015	Gross Amounts		Amortization		Net
Indefinite-lived assets:
Medicare license	$	704,000	$	-	$	704,000
Amortized intangible assets:
Exclusivity		40,000		(20,940)		19,060
Non-compete		185,400		(70,472)		114,928
Payor relationships		107,000		(26,750)		80,250
Network relationships		220,000		(51,333)		168,667
Trade name		257,000		(60,742)		196,258
Totals	$	1,513,400	$	(230,237)	$	1,283,163

			Accumulated
March 31, 2015	Gross Amounts		Amortization		Net
Indefinite-lived assets:
Medicare license	$	704,000	$	-	$	704,000
Amortized intangible assets:
Exclusivity		40,000		(15,940)		24,060
Non-compete		185,400		(41,428)		143,972
Payor relationships		107,000		(16,050)		90,950
Network relationships		220,000		(29,333)		190,667
Trade name		257,000		(33,392)		223,608
Totals	$	1,513,400	$	(136,143)	$	1,377,257

The amortization expense for the three and six months ended September 30, 2015 was approximately $47,000 and $94,000, respectively. The amortization expense for the three and six months ended September 30, 2014 was approximately $125,000 and $130,000 respectively.

Future amortization expense is estimated to be as follows for the period October 1, 2105 to March 31, 2016 and for each of the five following years ending March:

October 31, 2015 to March 31, 2016	$	93,083
2017		185,001
2018		146,538
2019		114,658
2020		39,883
Total	$	579,163

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Convertible Notes Payable (Detail) - USD ($)	Sep. 30, 2015	Mar. 31, 2015
Debt Instrument [Line Items]
Convertible Notes Payable	$ 2,549,476	$ 2,494,921
9% Senior Subordinated Convertible Notes due February 15, 2016
Debt Instrument [Line Items]
Convertible Notes Payable	1,075,230	1,037,818
8% Convertible Note Payable to NNA due March 28, 2019
Debt Instrument [Line Items]
Convertible Notes Payable	1,086,096	1,014,745
Conversion feature liability
Debt Instrument [Line Items]
Convertible Notes Payable	$ 388,150	$ 442,358

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Schedule Of Out Of Period Correction Made To Adjust Warrant Liability (Details) - USD ($)	3 Months Ended			6 Months Ended
	Sep. 30, 2015	Jun. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Mar. 31, 2015	Mar. 28, 2014
Schedule Of Out Of Period Correction Made To Adjust Warrant Liability [Line Items]
Deferred financing costs	$ 217,963	$ 250,030		$ 217,963		$ 264,708
Note and line of credit payable, net of discount	7,282,448	7,388,756		7,282,448		327,141
Warrant liability	1,315,846	1,477,308		1,315,846		$ 0	$ 6,685,402
Interest expense	68,818	109,949	$ 329,258	429,220	$ 606,125
Loss on change in fair value of warrant and conversion feature liabilities	96,852	382,130	$ 152,140	(116,866)	$ 122,135
Scenario, Previously Reported [Member]
Schedule Of Out Of Period Correction Made To Adjust Warrant Liability [Line Items]
Deferred financing costs		235,093
Note and line of credit payable, net of discount		6,624,548
Warrant liability		2,308,620
Interest expense		360,402
Loss on change in fair value of warrant and conversion feature liabilities		$ 213,718
Restatement Adjustment [Member]
Schedule Of Out Of Period Correction Made To Adjust Warrant Liability [Line Items]
Deferred financing costs	14,937			14,937
Note and line of credit payable, net of discount	764,208			764,208
Warrant liability	$ (831,312)			(831,312)
Interest expense				(250,453)
Loss on change in fair value of warrant and conversion feature liabilities				$ 168,412

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Medical Payables (Detail) - USD ($)	6 Months Ended	12 Months Ended
	Sep. 30, 2015	Mar. 31, 2015
Medical Payables [Line Items]
Balance, beginning of period	$ 1,260,549	$ 552,561
Incurred health care costs:
Current year	3,308,542	4,211,231
Acquired medical liabilities (see Note 3)	0	458,378
Claims paid:
Current year	(2,167,473)	(3,245,283)
Prior years	(993,785)	(90,367)
Total claims paid	(3,161,258)	(3,335,650)
Risk pool settlement	0	(384,869)
Accrual for net deficit from full risk capitation contracts	19,632	544,041
Adjustments	(90,278)	(785,143)
Balance , end of period	$ 1,337,187	$ 1,260,549

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Interest Expense on Convertible Notes (Detail) - USD ($)	3 Months Ended			6 Months Ended
	Sep. 30, 2015	Jun. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Schedule Of Debt Instrument Interest Expense [Line Items]
Interest expense	$ 68,818	$ 109,949	$ 329,258	$ 429,220	$ 606,125
Convertible Notes Payable
Schedule Of Debt Instrument Interest Expense [Line Items]
Interest expense	66,102		52,856	131,571	77,881
Amortization of loan fees and discount	73,568		60,884	144,219	97,322
Interest expense, debt	$ 139,670		$ 113,740	$ 275,790	$ 175,203

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Carrying Amounts and Fair Values of Company's Financial Instruments (Detail) - USD ($)	Sep. 30, 2015	Mar. 31, 2015
Liabilities
Financial Liabilities Fair Value Disclosure	$ 1,703,996	$ 2,586,854
Fair Value, Inputs, Level 1
Liabilities
Financial Liabilities Fair Value Disclosure	0	0
Fair Value, Inputs, Level 2
Liabilities
Financial Liabilities Fair Value Disclosure	0	0
Fair Value, Inputs, Level 3
Liabilities
Financial Liabilities Fair Value Disclosure	1,703,996	2,586,854
Warranty Liability
Liabilities
Financial Liabilities Fair Value Disclosure	1,315,846	2,144,496
Warranty Liability | Fair Value, Inputs, Level 1
Liabilities
Financial Liabilities Fair Value Disclosure	0	0
Warranty Liability | Fair Value, Inputs, Level 2
Liabilities
Financial Liabilities Fair Value Disclosure	0	0
Warranty Liability | Fair Value, Inputs, Level 3
Liabilities
Financial Liabilities Fair Value Disclosure	1,315,846	2,144,496
Conversion Feature Liability
Liabilities
Financial Liabilities Fair Value Disclosure	388,150	442,358
Conversion Feature Liability | Fair Value, Inputs, Level 1
Liabilities
Financial Liabilities Fair Value Disclosure	0	0
Conversion Feature Liability | Fair Value, Inputs, Level 2
Liabilities
Financial Liabilities Fair Value Disclosure	0	0
Conversion Feature Liability | Fair Value, Inputs, Level 3
Liabilities
Financial Liabilities Fair Value Disclosure	$ 388,150	$ 442,358

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Summary of Activity of Level 3 Inputs Measured on Recurring Basis (Detail) - Fair Value, Inputs, Level 3 - USD ($)	3 Months Ended	6 Months Ended
	Sep. 30, 2015	Sep. 30, 2015
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance, beginning of period	$ 2,800,572	$ 2,586,854
Loss (gain) on change in fair value of warrant and conversion feature liability	(265,264)	(51,546)
Warrant out of period correction, as adjusted	(831,312)	(831,312)
Balance, end of period	1,703,996	1,703,996
Warrant Liability
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance, beginning of period	2,308,620	2,144,496
Loss (gain) on change in fair value of warrant and conversion feature liability	(161,462)	2,662
Warrant out of period correction, as adjusted	(831,312)	(831,312)
Balance, end of period	1,315,846	1,315,846
Conversion Feature Liability
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance, beginning of period	491,952	442,358
Loss (gain) on change in fair value of warrant and conversion feature liability	(103,802)	(54,208)
Warrant out of period correction, as adjusted	0	0
Balance, end of period	$ 388,150	$ 388,150

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Acquisitions

6 Months Ended

Sep. 30, 2015

Business Combinations [Abstract]

Acquisition

3.  Acquisitions

During the six months ended September 30, 2014, the Company acquired SCHC and AKM for a total cash consideration of $1,947,431, net of cash acquired of $620,960, detailed as follows:

SCHC	$	2,428,391
AKM		140,000
Less: cash acquired		(620,960)
Total	$	1,947,431

The results of AKM’s operations have been included in the Company’s condensed consolidated financial statements since May 30, 2014.

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Computation of Diluted Earnings Per Share (Detail) - shares	3 Months Ended		6 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Incremental shares assumed issued on exercise of in the money	0	79,952	0	590,184
Convertible Notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Incremental shares assumed issued on exercise of in the money	0	79,952	0	74,882
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Incremental shares assumed issued on exercise of in the money	0	0	0	149,580
Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Incremental shares assumed issued on exercise of in the money	0	0	0	365,722

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Notes and Lines of Credit Payable (Parenthetical) (Detail) - USD ($)	6 Months Ended
	Sep. 30, 2015	Mar. 31, 2015	Mar. 28, 2014
Debt Instrument [Line Items]
Debt discount	$ 217,316	$ 1,060,401	$ 990,838
Debt Instrument, Maturity Date	Mar. 28, 2019

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Amount of Shares of Common Stock Reserved (Detail) - shares	Sep. 30, 2015	Mar. 31, 2015
Stock Option Outstanding [Line Items]
Common stock issued and outstanding	4,863,389
Conversion of 9% Notes	275,000
Conversion of 8% Notes	200,000
Warrants outstanding	914,500	914,500
Stock options outstanding	776,500	776,500
Remaining shares issuable under 2013 Plan	90,000
Common stock reserved for future issuance	7,119,389

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CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2015	Mar. 31, 2015
CURRENT ASSETS
Cash and cash equivalents	$ 3,924,922	$ 5,014,242
Accounts receivable, net	4,015,715	3,801,584
Other receivables	289,064	208,288
Due from affiliates	20,052	36,397
Prepaid expenses	410,013	278,922
Deferred financing costs, net, current	0	513,646
Total current assets	8,659,766	9,853,079
Deferred financing costs, net, non-current	217,963	264,708
Property and equipment, net	577,701	582,470
Restricted cash	530,000	530,000
Intangible assets, net	1,283,163	1,377,257
Goodwill	2,168,833	2,168,833
Other assets	212,146	218,716
TOTAL ASSETS	13,649,572	14,995,063
CURRENT LIABILITIES
Accounts payable and accrued liabilities	4,944,470	3,352,204
Medical liabilities	1,337,187	1,260,549
Note and line of credit payable, net of discount, current portion	7,282,448	327,141
Convertible notes payable, net of discount, current portion	2,549,476	1,037,818
Warrant liability	1,315,846	0
Total current liabilities	17,429,427	5,977,712
Notes payable, net of discount, non-current portion	0	6,234,721
Convertible notes payable, net of discount	0	1,457,103
Warrant liability	0	2,144,496
Deferred tax liability	177,344	171,215
Total liabilities	$ 17,606,771	$ 15,985,247
COMMITMENTS AND CONTINGENCIES AND SUBSEQUENT EVENTS (NOTES 10 and 11)
STOCKHOLDERS' DEFICIT
Preferred stock, par value $0.001; 5,000,000 shares authorized; none issued	$ 0	$ 0
Common Stock, par value $0.001; 100,000,000 shares authorized, 4,863,389 shares issued and outstanding as of September 30, 2015 and March 31, 2015	4,863	4,863
Additional paid-in-capital	16,670,718	16,517,985
Accumulated deficit	(22,354,252)	(19,340,521)
Stockholders' deficit attributable to Apollo Medical Holdings, Inc.	(5,678,671)	(2,817,673)
Non-controlling interest	1,721,472	1,827,489
Total stockholders' deficit	(3,957,199)	(990,184)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$ 13,649,572	$ 14,995,063

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Stockholders' Equity - Additional Information (Detail) - $ / shares	1 Months Ended	6 Months Ended
	Oct. 18, 2012	Sep. 30, 2015	Mar. 31, 2015	Jul. 21, 2014	Apr. 29, 2013
Stockholders Equity Note [Line Items]
Equity incentive plan, shares available for future grant		90,000
Common Stock, shares authorized		100,000,000	100,000,000
Expected dividend rate		0.00%
Class of Warrant or Right, Number of Securities Called by Warrants or Rights				100,000
Price Per Share Level For Future Issuance Of Common Shares		$ 9.00
Note warrant
Stockholders Equity Note [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights		300,000
Class of Warrant or Right, Exercise Price of Warrants or Rights		$ 10.00
Placement agent warrants
Stockholders Equity Note [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights		200,000
Class of Warrant or Right, Exercise Price of Warrants or Rights		$ 20.00
9% Notes Payable
Stockholders Equity Note [Line Items]
Convertible notes, interest rate		9.00%
Southern California Heart Centers [Member]
Stockholders Equity Note [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights				$ 10.00
2010 Equity Incentive Plan
Stockholders Equity Note [Line Items]
Equity incentive plan, additional shares authorized for issuance	9,000,000
Issuance of common stock for services (shares)		1,200,000
2013 Equity Incentive Plan
Stockholders Equity Note [Line Items]
Equity incentive plan, shares authorized for issuance					500,000
Equity incentive plan, shares available for future grant		90,000

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Description of Business

6 Months Ended

Sep. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Description of Business

1. Description of Business

Apollo Medical Holdings, Inc. (the “Company” or “ApolloMed”) and its affiliated physician groups are a patient-centered, physician-centric, integrated healthcare delivery company, working to provide coordinated, outcomes-based medical care in a cost-effective manner. ApolloMed has built a company and culture that is focused on physicians providing high quality care, population management and care coordination for patients, particularly for senior patients and patients with multiple chronic conditions.

ApolloMed serves Medicare, Medicaid and health maintenance organization (“HMO”) patients, and uninsured patients, in California. The Company primarily provides services to patients who are covered by private or public insurance, although the Company derives a small portion of our revenue from non-insured patients. We provide care coordination services to each major constituent of the healthcare delivery system, including patients, families, primary care physicians, specialists, acute care hospitals, alternative sites of inpatient care, physician groups and health plans.

ApolloMed’s physician network consists of hospitalists, primary care physicians and specialist physicians primarily through ApolloMed’s owned and affiliated physician groups. ApolloMed operates through the following subsidiaries: Apollo Medical Management, Inc. (“AMM”), Pulmonary Critical Care Management, Inc. (“PCCM”), Verdugo Medical Management, Inc. (“VMM”), and ApolloMed Accountable Care Organization, Inc. (“ApolloMed ACO”). Through its wholly-owned subsidiary, AMM, ApolloMed manages affiliated medical groups, which consist of ApolloMed Hospitalists (“AMH”), a hospitalist company, ApolloMed Care Clinic (“ACC”), Maverick Medical Group, Inc. (“MMG”), AKM Medical Group, Inc. (“AKM”), Southern California Heart Centers (“SCHC”) and Bay Area Hospitalist Associates, A Medical Corporation (“BAHA”). Through its wholly-owned subsidiary, PCCM, ApolloMed manages Los Angeles Lung Center (“LALC”), and through its wholly-owned subsidiary VMM, ApolloMed manages Eli Hendel, M.D., Inc. (“Hendel”). ApolloMed also has a controlling interest in ApolloMed Palliative Services, LLC (“APS”), which owns two Los Angeles-based companies, Best Choice Hospice Care LLC (“BCHC”) and Holistic Health Home Health Care Inc. (“HCHHA”).

AMM, PCCM and VMM each operate as a physician practice management company and are in the business of providing management services to physician practice corporations under long-term management service agreements, pursuant to which AMM, PCCM or VMM, as applicable, manages all non-medical services for the affiliated medical group and has exclusive authority over all non-medical decision making related to ongoing business operations.

ApolloMed ACO participates in the MSSP, the goal of which is to improve the quality of patient care and outcomes through more efficient and coordinated approach among providers. Revenues earned by ApolloMed ACO are uncertain, and, if such amounts are payable by the CMS,  they will be paid on an annual basis significantly after the time earned, and will be contingent on various factors, including achievement of the minimum savings rate as determined by MSSP for the relevant period. Such payments are earned and made on an “all or nothing” basis. Although ApolloMed ACO beat its total benchmark expenditures for 2014, generating $3.9 million in total savings and achieving an ACO Quality Score of 90.4% on its Quality Performance Report, CMS has determined that ApolloMed ACO did not meet the minimum savings threshold and therefore will not receive any incentive payment in fiscal year 2016.

Liquidity and Capital Resources

The unaudited condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and have been prepared on a going concern basis, which contemplates the realization of assets and settlement of liabilities in the normal course of business.

The Company has a history of operating losses and as of September 30, 2015 has an accumulated deficit of $22,354,252, and during the six months ended September 30, 2015 net cash used in operating activities was $328,830.

The primary sources of liquidity as of September 30, 2015 include cash on hand of $3,924,922. Management has established a business plan, which they believe will result in future profitability. Additionally the Company is highly dependent on MSSP revenue, which is contingent upon the realization of program savings as determined by the CMS. Non-receipt of all or nothing annual payments from the MSSP, as occurred during fiscal 2016, will adversely impact the liquidity of the Company.

On October 14, 2015, the Company entered into a Securities Purchase Agreement (the “Agreement”) with Network Medical Management, Inc. (“NMM”) pursuant to which the Company sold to NMM, and NMM purchased from the Company, in a private offering of securities, 1,111,111 investment units (the “Units”), each unit consisting of one share of the Company’s Series A Preferred Stock (the “Preferred Stock”) and a stock purchase warrant (the “Warrants”) to purchase one share of the Company’s common stock (the “Common Stock”) at an exercise price of $9.00 per share. NMM paid the Company an aggregate $10,000,000 for the Units, the proceeds of which were used by the Company primarily to repay certain outstanding indebtedness owed by the Company to NNA of Nevada, Inc. (the Company repaid its outstanding term loan and revolving credit facility with NNA pursuant to the Credit Agreement in the then-outstanding aggregate amount of $7,304,506, consisting of $7,282,500 principal plus $22,006 of accrued interest) and the balance for working capital (see Note 11 to the Notes to the Condensed Consolidated Financial Statements).

Management believes that the ongoing requirements for working capital, debt service and covenants compliance and planned capital expenditures will be adequately funded from current sources for at least the next twelve months.

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Schedule of intangible assets (Detail) - USD ($)	Sep. 30, 2015	Mar. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Indefinite-Lived Intangible Assets, Gross Amounts	$ 1,513,400	$ 1,513,400
Accumulated amortization	(230,237)	(136,143)
Intangible assets, net	1,283,163	1,377,257
Medicare license
Finite-Lived Intangible Assets [Line Items]
Indefinite-Lived Intangible Assets, Gross Amounts	704,000	704,000
Accumulated amortization	0	0
Intangible assets, net	704,000	704,000
Exclusivity
Finite-Lived Intangible Assets [Line Items]
Indefinite-Lived Intangible Assets, Gross Amounts	40,000	40,000
Accumulated amortization	(20,940)	(15,940)
Intangible assets, net	19,060	24,060
Non-compete
Finite-Lived Intangible Assets [Line Items]
Indefinite-Lived Intangible Assets, Gross Amounts	185,400	185,400
Accumulated amortization	(70,472)	(41,428)
Intangible assets, net	114,928	143,972
Payor relationships
Finite-Lived Intangible Assets [Line Items]
Indefinite-Lived Intangible Assets, Gross Amounts	107,000	107,000
Accumulated amortization	(26,750)	(16,050)
Intangible assets, net	80,250	90,950
Network relationships
Finite-Lived Intangible Assets [Line Items]
Indefinite-Lived Intangible Assets, Gross Amounts	220,000	220,000
Accumulated amortization	(51,333)	(29,333)
Intangible assets, net	168,667	190,667
Trade name
Finite-Lived Intangible Assets [Line Items]
Indefinite-Lived Intangible Assets, Gross Amounts	257,000	257,000
Accumulated amortization	(60,742)	(33,392)
Intangible assets, net	$ 196,258	$ 223,608

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Notes and Lines of Credit Payable (Tables)

6 Months Ended

Sep. 30, 2015

Notes Payable [Abstract]

Schedule of Notes and lines of credit payable

Notes and lines of credit payable consist of the following:

	September 30,		March 31,
	2015		2015
Term loan payable to NNA due March 28, 2019, net of debt discount of $217,316 (September 30, 2015) and $1,060,401 (March 31, 2015)	$	6,187,684	$	5,467,098
Line of credit payable to NNA due March 28, 2019		1,000,000		1,000,000
Unsecured revolving line of credit due to financial institution due June 5, 2016		94,764		94,764
	$	7,282,448	$	6,561,862

Schedule of Interest Expense Associated with Notes Payable

Interest expense associated with the notes and lines of credit payable consisted of the following:

	Three Months Ended				Six Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
Interest expense	$	149,070	$	143,845	$	298,779	$	287,998
Amortization of loan fees and discount		30,531		71,673		105,104		142,924
Out of period adjustment		(250,453)		-		(250,453)		-
	$	(70,852)	$	215,518	$	153,430	$	430,922

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Schedule of future amortization expense (Detail)	Mar. 31, 2015 USD ($)
Finite-Lived Intangible Assets [Line Items]
October 31, 2015 to March 31, 2016	$ 93,083
2017	185,001
2018	146,538
2019	114,658
2020	39,883
Total	$ 579,163

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Stockholders' Equity (Tables)

6 Months Ended

Sep. 30, 2015

Stockholders' Equity Note [Abstract]

Schedule of Nonvested Share Activity

A summary of the Company’s restricted stock sold to employees, directors and consultants with a right of repurchase of unlapsed or unvested shares is as follows:

			Weighted
			Average		Weighted		Weighted-
			Remaining		Average		average
			Vesting		Per Share		Per Share
			Life		Intrinsic		Grant Date
	Shares		(In years)		Value		Fair Value
Unvested or unlapsed shares at March 31, 2015		12,222		0.3	$	0.50	$	4.10
Granted		-
Vested / lapsed		(12,222)		-
Forfeited		-		-		-		-
Unvested or unlapsed shares at September 30, 2015		-		-		-		-

Stock Option Transactions Under Stock Option Plans

Stock option activity for the six months ended September 30, 2015 is summarized below:

			Weighted		Weighted		Weighted
			Average		Average		Average
			Per Share		Remaining		Per Share
			Exercise		Life		Intrinsic
	Shares		Price		(Years)		Value
Balance, March 31, 2015		776,500	$	4.69		7.4	$	1.50
Granted		-
Cancelled		-
Exercised		-
Expired		-
Forfeited		-
Balance, September 30, 2015		776,500	$	3.27		7.4		3.59
Vested and exercisable, September 30, 2015		692,556	$	2.55		7.2		4.02

Summary of Restricted Stock Award

The following table summarizes the stock awards under the ACO Plan during the six months ended September 30, 2015:

			Weighted
			Average		Weighted
			Remaining		Average		Weighted
			Vesting		Per Share		Average
			Life		Intrinsic		Per Share
	Shares		(Years)		Value		Fair Value
Balance, March 31, 2015		3,752,004		0.1	$	0.70	$	0.07
Granted		-		-		-		-
Released		-		-		-		-
Balance, September 30, 2015		3,752,004		-	$	0.70	$	0.07
Vested and exercisable, end of period		3,712,675

Total Unrecognized Compensation Costs Related To Non-Vested Stock-Based Compensation Arrangements

As of September 30, 2015, total unrecognized compensation costs related to non-vested stock-based compensation arrangements granted under the Company’s 2010 Plan and 2013 Plan, and the ACO Plan’s and the weighted-average period of years expected to recognize those costs are as follows:

			Weighted
	Unrecognized		Average
	Stock		Remaining
	Compensation		Vesting Period
	Cost		(Years)
Common stock options	$	155,393		1.7
Restricted stock	$	-		-
ACO Plan restricted stock	$	76		0.01

Summary of Stock Based Compensation Expense Related To Restricted Stock and Option Awards

Stock-based compensation expense related to common stock and common stock option awards is recognized over their respective vesting periods and was included in the accompanying condensed consolidated statement of operations as follows:

	Three Months Ended				Six Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
Stock-based compensation expense:
Cost of services	$	1,227	$	(17,822)	$	2,454	$	10,921
General and administrative		67,659		874,341		150,279		964,737
	$	68,886	$	856,519	$	152,733	$	975,658

Warrants Outstanding

Warrants consisted of the following for the six months ended September 30, 2015:

	Weighted
	Average
	Per Share
	Intrinsic		Number of
	Value		Warrants
Outstanding at March 31, 2015	$	0.46		914,500
Granted		-		-
Exercised		-		-
Cancelled		-		-
Outstanding at September 30, 2015	$	0.32		914,500

								Weighted
				Weighted				Average
Exercise Price Per		Warrants		Average Remaining		Warrants		Exercise Price Per
Share		Outstanding		Contractual Life		Exercisable		Share
$	1.15		125,000		0.8		125,000	$	1.15
	1.15		25,000		0.8		25,000		1.15
	4.50		50,000		0.8		50,000		4.50
	5.00		10,000		2.1		10,000		5.00
	4.50		82,500		2.3		82,500		4.50
	4.00		22,000		2.3		22,000		4.00
	10.00		200,000		5.5		-		10.00
	20.00		200,000		5.5		-		20.00
	10.00		100,000		5.5		-		10.00
	10.00		100,000		2.8		100,000		10.00
			914,500		3.8		414,500		4.60

Amount of Shares of Common Stock Reserved

The number of shares of common stock reserved for these purposes is as follows at September 30, 2015: 

Common stock issued and outstanding	4,863,389
Conversion of 9% Notes	275,000
Conversion of 8% Notes	200,000
Warrants outstanding	914,500
Stock options outstanding	776,500
Remaining shares issuable under 2013 Plan	90,000
	7,119,389

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Summary of Significant Accounting Policies

6 Months Ended

Sep. 30, 2015

Accounting Policies [Abstract]

Significant Accounting Policies

2. Summary of Significant Accounting Policies

Accounting Principles

These unaudited condensed consolidated statements reflect all adjustments, consisting of normal recurring adjustments, which, in management’s opinion, are necessary, and should be read in conjunction with the Company's Annual Report on Form 10-K/A for the fiscal year ended March 31, 2015 as filed with the SEC on July 29, 2015.

Principles of Consolidation

The Company’s unaudited condensed consolidated financial statements include the accounts of (1) Apollo Medical Holdings, Inc. and its wholly owned subsidiaries AMM, PCCM, and VMM, (2) the Company’s controlling interest in ApolloMed ACO, and APS, a newly formed entity which provides home health and hospice medical services and owns BCHC and HCHHA and in which a non-controlling interest in APS contributed $586,111 in cash; and (3) physician practice corporations (“PPCs”) managed under long-term management service agreements including AMH, MMG, ACC, LALC, Hendel, AKM, SCHC and BAHA. Some states have laws that prohibit business entities, such as ApolloMed, from practicing medicine, employing physicians to practice medicine, exercising control over medical decisions by physicians (collectively known as the corporate practice of medicine), or engaging in certain arrangements with physicians, such as fee-splitting. In California, the Company operates by maintaining long-term management service agreements with the PPCs, which are each owned and operated by physicians, and which employ or contract with additional physicians to provide hospitalist services. Under the management agreements, the Company provides and performs all non-medical management and administrative services, including financial management, information systems, marketing, risk management and administrative support. Each management agreement typically has a term from 10 to 20 years unless terminated by either party for cause. The management agreements are not terminable by the PPCs, except in the case of material breach or bankruptcy of the respective PPM.

Through the management agreements and the Company’s relationship with the stockholders of the PPCs, the Company has exclusive authority over all non-medical decision making related to the ongoing business operations of the PPCs. Consequently, the Company consolidates the revenue and expenses of each PPC from the date of execution of the applicable management agreement.

All intercompany balances and transactions have been eliminated in consolidation.

Business Combinations

The Company uses the acquisition method of accounting for all business combinations, which requires assets and liabilities of the acquiree to be recorded at fair value (with limited exceptions), to measure the fair value of the consideration transferred, including contingent consideration, to be determined on the acquisition date, and to account for acquisition related costs separately from the business combination. 

Reportable Segments

The Company operates as one reportable segment, the healthcare delivery segment, and implements and operates innovative health care models to create a patient-centered, physician-centric experience. The Company reports its consolidated financial statements in the aggregate, including all activities in one reportable segment.

Revenue Recognition

Revenue consists of contracted, fee-for-service, and capitation revenue. Revenue is recorded in the period in which services are rendered. Revenue is principally derived from the provision of healthcare staffing services to patients within healthcare facilities. The form of billing and related risk of collection for such services may vary by customer. The following is a summary of the principal forms of the Company’s billing arrangements and how net revenue is recognized for each.

Contracted revenue

Contracted revenue represents revenue generated under contracts for which the Company provides physician and other healthcare staffing and administrative services in return for a contractually negotiated fee. Contract revenue consists primarily of billings based on hours of healthcare staffing provided at agreed-to hourly rates. Revenue in such cases is recognized as the hours are worked by the Company’s staff and contractors. Additionally, contract revenue also includes supplemental revenue from hospitals where the Company may have a fee-for-service contract arrangement or provide physician advisory services to the medical staff at a specific facility. Contract revenue for the supplemental billing in such cases is recognized based on the terms of each individual contract. Such contract terms generally either provides for a fixed monthly dollar amount or a variable amount based upon measurable monthly activity, such as hours staffed, patient visits or collections per visit compared to a minimum activity threshold. Such supplemental revenues based on variable arrangements are usually contractually fixed on a monthly, quarterly or annual calculation basis considering the variable factors negotiated in each such arrangement. Such supplemental revenues are recognized as revenue in the period when such amounts are determined to be fixed and therefore contractually obligated as payable by the customer under the terms of the respective agreement. Additionally, the Company derives a portion of the Company’s revenue as a contractual bonus from collections received by the Company’s partners and such revenue is contingent upon the collection of third-party billings. These revenues are not considered earned and therefore not recognized as revenue until actual cash collections are achieved in accordance with the contractual arrangements for such services.

Fee-for-service revenue

Fee-for-service revenue represents revenue earned under contracts in which the Company bills and collects the professional component of charges for medical services rendered by the Company’s contracted physicians. Under the fee-for-service arrangements, the Company bills patients for services provided and receives payment from patients or their third-party payors. Fee-for-service revenue is reported net of contractual allowances and policy discounts. All services provided are expected to result in cash flows and are therefore reflected as net revenue in the financial statements. Fee-for-service revenue is recognized in the period in which the services are rendered to specific patients and reduced immediately for the estimated impact of contractual allowances in the case of those patients having third-party payor coverage. The recognition of net revenue (gross charges less contractual allowances) from such visits is dependent on such factors as proper completion of medical charts following a patient visit, the forwarding of such charts to the Company’s billing center for medical coding and entering into the Company’s billing system and the verification of each patient’s submission or representation at the time services are rendered as to the payor(s) responsible for payment of such services. Revenue is recorded based on the information known at the time of entering of such information into the Company’s billing systems as well as an estimate of the revenue associated with medical services.

Capitation revenue

Capitation revenue (net of capitation withheld to fund risk share deficits) is recognized in the month in which the Company is obligated to provide services. Minor ongoing adjustments to prior months’ capitation, primarily arising from contracted HMO‘s finalizing of monthly patient eligibility data for additions or subtractions of enrollees, are recognized in the month they are communicated to the Company. Managed care revenues of the Company consist primarily of capitated fees for medical services provided by the Company under a provider service agreement (“PSA”) or capitated arrangements directly made with various managed care providers including HMO’s and management service organizations (“MSOs”). Capitation revenue under the PSA and HMO contracts is prepaid monthly to the Company based on the number of enrollees electing the Company as their healthcare provider. Additionally, Medicare pays capitation using a “Risk Adjustment model,” which compensates managed care organizations and providers based on the health status (acuity) of each individual enrollee. Health plans and providers with higher acuity enrollees will receive more and those with lower acuity enrollees will receive less. Under Risk Adjustment, capitation is determined based on health severity, measured using patient encounter data. Capitation is paid on an interim basis based on data submitted for the enrollee for the preceding year and is adjusted in subsequent periods after the final data is compiled. Positive or negative capitation adjustments are made for Medicare enrollees with conditions requiring more or less healthcare services than assumed in the interim payments. Since the Company cannot reliably predict these adjustments, periodic changes in capitation amounts earned as a result of Risk Adjustment are recognized when those changes are communicated by the health plans to the Company.

HMO contracts also include provisions to share in the risk for enrollee hospitalization, whereby the Company can earn additional incentive revenue or incur penalties based upon the utilization of hospital services. Typically, any shared risk deficits are not payable until and unless the Company generates future risk sharing surpluses, or if the HMO withholds a portion of the capitation revenue to fund any risk share deficits. At the termination of the HMO contract, any accumulated risk share deficit is typically extinguished. Due to the lack of access to information necessary to estimate the related costs, shared-risk amounts receivable from the HMOs are only recorded when such amounts are known. Risk pools for the prior contract years are generally final settled in the third or fourth quarter of the following fiscal year.

In addition to risk-sharing revenues, the Company also receives incentives under “pay-for-performance” programs for quality medical care, based on various criteria. These incentives, which are included in other revenues, are generally recorded in the third and fourth quarters of the fiscal year and are recorded when such amounts are known.

Under full risk capitation contracts, an affiliated hospital enters into agreements with several HMOs, pursuant to which, the affiliated hospital provides hospital, medical, and other healthcare services to enrollees under a fixed capitation arrangement (“Capitation Arrangement”). Under the risk pool sharing agreement, the affiliated hospital and medical group agree to establish a Hospital Control Program to serve the enrollees, pursuant to which, the medical group is allocated a percentage of the profit or loss, after deductions for costs to affiliated hospitals. The Company participates in full risk programs under the terms of the PSA, with health plans whereby the Company is wholly liable for the deficits allocated to the medical group under the arrangement. The related liability is included in medical liabilities in the accompanying consolidated balance sheets at September 30, 2015 and March 31, 2015. (See Note 2 "Medical Liabilities" below).

Medicare Shared Savings Program Revenue

The Company through its subsidiary, ApolloMed ACO, participates in the MSSP sponsored by CMS. The MSSP allows ACO participants to share in cost savings it generates in connection with rendering medical services to Medicare patients. Payments to ACO participants, if any, will be calculated annually by CMS on cost savings generated by the ACO participant relative to the ACO participants’ CMS benchmark. The MSSP is a relatively new program managed by CMS that has an evolving payment methodology. The Company considers revenue, if any, under the MSSP, as contingent upon the realization of program savings as determined by CMS, and are not considered earned and therefore are not recognized as revenue until notice from CMS that cash payments are to be imminently received.

Although ApolloMed ACO beat its total benchmark expenditures for 2014, generating $3.9 million in total savings and achieving an ACO Quality Score of 90.4% on its Quality Performance Report, CMS has determined that the Company did not meet the minimum savings threshold and therefore will not receive any incentive payment in fiscal year 2016.

Cash and Cash Equivalents

Cash and cash equivalents consists of highly liquid investments with an initial maturity of three months or less at date of purchase to be cash equivalents.

Restricted Cash

Restricted cash primarily consists of cash held as collateral to secure standby letters of credits as required by certain contracts associated with Maverick Medical Group. The certificates have an interest rate of 0.15%. 

Goodwill and Intangible Assets

Under FASB ASC 350, Intangibles – Goodwill and Other (“ASC 350”), goodwill and indefinite-lived intangible assets are reviewed at least annually for impairment. Acquired intangible assets with definite lives are amortized over their individual useful lives.

At least annually, management assesses whether there has been any impairment in the value of goodwill by first comparing the fair value to the net carrying value. If the carrying value exceeds its estimated fair value, a second step is performed to compute the amount of the impairment. An impairment loss is recognized if the implied fair value of the asset being tested is less than its carrying value. In this event, the asset is written down accordingly. The fair values of goodwill are determined using valuation techniques based on estimates, judgments and assumptions management believes are appropriate in the circumstances. The fair value is evaluated based on market capitalization determined using average share prices within a reasonable period of time near the selected testing date (i.e., fiscal year-end).

At least annually, indefinite-lived intangible assets are tested for impairment. Impairment for intangible assets with indefinite lives exists if the carrying value of the intangible asset exceeds its fair value. The fair values of indefinite-lived intangible assets are determined using valuation techniques based on estimates, judgments and assumptions management believes are appropriate in the circumstances.

Accounts Receivable and Allowance for Doubtful Accounts

Accounts receivable primarily consists of amounts due from third-party payors, including government sponsored Medicare and Medicaid programs, insurance companies, and amounts due from hospitals and patients. Accounts receivable are recorded and stated at the amount expected to be collected.

The Company maintains reserves for potential credit losses on accounts receivable. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves. The Company also regularly analyses the ultimate collectability of accounts receivable after certain stages of the collection cycle using a look-back analysis to determine the amount of receivables subsequently collected and adjustments are recorded when necessary. Reserves are recorded primarily on a specific identification basis.

Concentrations

The Company had major payors that contributed the following percentage of net revenue:

	Three Months Ended					Six Months Ended
	September 30,					September 30,
	2015			2014		2015			2014
Medicare/Medi-Cal		32.7	%		*		33.8	%		*
L.A Care		16.0	%		**		14.6	%		**
Healthnet		11.3	%		**		12.4	%		**
Hollywood Presbyterian		*			*		*			*
California Hospital Medical Center		*			*		*			*

 * Represents less than 10%

** Not a payor during this time period

Receivables from one payor amounted to the following percentage of total accounts receivable:

	September 30, 2015			March 31, 2015
Medicare/Medi-Cal		30.9	%		22.1	%

Medical Liabilities

The Company is responsible for integrated care that the associated physicians and contracted hospitals provide to its enrollees under risk-pool arrangements. The Company provides integrated care to health plan enrollees through a network of contracted providers under sub-capitation and direct patient service arrangements, company-operated clinics and staff physicians. Medical costs for professional and institutional services rendered by contracted providers are recorded as cost of services in the accompanying condensed consolidated statements of operations and comprehensive loss. Costs for operating medical clinics, including the salaries of medical personnel, are also recorded in cost of services, while non-medical personnel and support costs are included in general and administrative expense.

An estimate of amounts due to contracted physicians, hospitals, and other professional providers is included in medical liabilities in the accompanying condensed consolidated balance sheets. Medical liabilities include claims reported as of the balance sheet date and estimates of incurred but not reported claims (“IBNR”). Such estimates are developed using actuarial methods and are based on many variables, including the utilization of health care services, historical payment patterns, cost trends, product mix, seasonality, changes in membership, and other factors. The estimation methods and the resulting reserves are periodically reviewed and updated. Many of the medical contracts are complex in nature and may be subject to differing interpretations regarding amounts due for the provision of various services. Such differing interpretations may not come to light until a substantial period of time has passed following the contract implementation. The Company has a $20,000 per member professional stop-loss, none on institutional risk pools. Any adjustments to reserves are reflected in current operations.

The Company’s medical liabilities were as follows:

	Six Months
	Ended		Year Ended
	September 30,		March 31,
	2015		2015
Balance, beginning of period	$	1,260,549	$	552,561
Incurred health care costs:
Current year		3,308,542		4,211,231
Acquired medical liabilities (see Note 3)		-		458,378
Claims paid:
Current year		(2,167,473)		(3,245,283)
Prior years		(993,785)		(90,367)
Total claims paid		(3,161,258)		(3,335,650)
Risk pool settlement		-		(384,869)
Accrual for net deficit from full risk capitation contracts		19,632		544,041
Adjustments		(90,278)		(785,143)
Balance , end of period	$	1,337,187	$	1,260,549

Deferred Financing Costs

Costs relating to debt issuance have been deferred and are amortized over the lives of the respective loans, using the effective interest method (see Note 6).

At March 31, 2015, there was approximately $514,000 of deferred financing costs related to the Company’s anticipated public offering which was anticipated to close during the second quarter of fiscal 2016. During the six months ended September 30, 2015, it was determined the offering would be postponed more than 90 days and these costs, which included legal, accounting and regulatory fees, were expensed to general and administrative expense in the six months ended September 30, 2015. 

Income Taxes

Federal and state income taxes are computed at currently enacted tax rates less tax credits using the asset and liability method. Deferred taxes are adjusted both for items that do not have tax consequences and for the cumulative effect of any changes in tax rates from those previously used to determine deferred tax assets or liabilities. Tax provisions include amounts that are currently payable, changes in deferred tax assets and liabilities that arise because of temporary differences between the timing of when items of income and expense are recognized for financial reporting and income tax purposes, changes in the recognition of tax positions and any changes in the valuation allowance caused by a change in judgment about the realizability of the related deferred tax assets. A valuation allowance is established when necessary to reduce deferred tax assets to amounts expected to be realized.

The Company uses a recognition threshold of more-likely-than-not and a measurement attribute on all tax positions taken or expected to be taken in a tax return in order to be recognized in the financial statements. Once the recognition threshold is met, the tax position is then measured to determine the actual amount of benefit to recognize in the financial statements.

Stock-Based Compensation

The Company maintains a stock-based compensation program for employees, non-employees, directors and consultants, which is more fully described in Note 9. The value of stock-based awards so measured is recognized as compensation expense on a cumulative straight-line basis over the vesting terms of the awards, adjusted for expected forfeitures. The Company sells certain of its restricted common stock to its employees, directors and consultants with a right (but not obligation) of repurchase feature that lapses based on performance of services in the future.

The Company accounts for share-based awards granted to persons other than employees and directors under ASC 505-50 Equity-Based Payments to Non-Employees. As such the fair value of such shares is periodically re-measured using an appropriate valuation model and income or expense is recognized over the vesting period.

Fair Value of Financial Instruments

The Company’s accounting for Fair Value Measurement and Disclosures defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This topic also establishes a fair value hierarchy which requires classification based on observable and unobservable inputs when measuring fair value. The fair value hierarchy distinguishes between assumptions based on market data (observable inputs) and an entity’s own assumptions (unobservable inputs). The hierarchy consists of three levels:

Level one — Quoted market prices in active markets for identical assets or liabilities;

Level two — Inputs other than level one inputs that are either directly or indirectly observable; and

Level three — Unobservable inputs developed using estimates and assumptions, which are developed by the reporting entity and reflect those assumptions that a market participant would use.

Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures each quarter.

The fair values of the Company’s financial instruments are measured on a recurring basis. The carrying amount reported in the accompanying condensed consolidated balance sheets for cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximates fair value because of the short-term maturity of those instruments. The carrying amount for borrowings under the Term Loan and the Convertible Notes with NNA approximates fair value which is determined by using interest rates that are available for similar debt obligations with similar terms at the balance sheet date.

Out of Period Correction

During the quarter ended September 30, 2015, following a review of the terms of certain derivative instruments entered into on March 28, 2014, management determined that a warrant liability was incorrectly valued which resulted in certain amounts being incorrectly stated in prior periods. Based on an analysis of the resulting adjustments, management determined that the prior financial statements were not considered to be materially misstated. Accordingly, the Company recorded an out of period correction in the current period to properly record the valuation of its warrant liability, unamortized debt discount and deferred financing costs. The following is a summary of the out of period correction made as of September 30, 2015:  

	As of and for the three months ended June 30, 2015 (as filed, before NNA error adjustment)		Out-of- period correction adjustment booked during the three months ended September 30, 2015		As of and for the three months ended June 30, 2015 (as adjusted)
Deferred financing costs	$	235,093	$	14,937	$	250,030
Note and line of credit payable, net of discount	$	6,624,548	$	764,208	$	7,388,756
Warrant liability	$	2,308,620	$	(831,312)	$	1,477,308
Interest expense	$	360,402	$	(250,453)	$	109,949
Loss on change in fair value of warrant and conversion feature liabilities	$	213,718	$	168,412	$	382,130

The fair value of the warrant liability of $1,315,846 at September 30, 2015 related to the warrants issued in connection with the 2014 NNA financing was estimated at September 30, 2015 using the Monte Carlo valuation model which used the following inputs: term of 5.5 years, risk free rate of 1.37%, no dividends, volatility of 58.1%, share price of $5.10 per share based on the trading price of the Company’s common stock adjusted for a marketability discount, and a 50% probability of down-round financing, after taking into account the above adjustment. 

The fair value of the warrant liability of $2,144,496 at March 31, 2015 was estimated at March 31, 2015 using the Monte Carlo valuation model which used the following inputs: term of 6.0 years, risk free rate of 1.53%, no dividends, volatility of 57.4%, share price of $5.00 per share based on the trading price of the Company’s common stock adjusted for a marketability discount, and a 50% probability of down-round financing.

Conversion feature liability

The fair value of the $388,150 conversion feature liability (included in convertible note payable) at September 30, 2015 issued in connection with the 2014 NNA financing 8% Convertible Note was estimated using the Monte Carlo valuation model which used the following inputs: term of 3.5 years, risk free rate of 1.0%, no dividends, volatility of 45.5%, share price of $5.10 per share based on the trading price of the Company’s common stock adjusted for a marketability discount, and a 100% probability that the Company will participate in a “down-round” financing at price per share lower than the initial NNA Financing 8% Convertible Note conversion price of $10.00 per share. The fair value of the $442,358 conversion feature liability (included in convertible note payable) at March 31, 2015 issued in connection with the 2014 NNA financing 8% Convertible Note was estimated using the Monte Carlo valuation model which used the following inputs: term of 4.0 years, risk free rate of 1.1%, no dividends, volatility of 47.6%, share price of $5.00 per share based on the trading price of the Company’s common stock adjusted for a marketability discount, and a 100% probability that the Company will participate in a “down-round” financing at price per share lower than the initial NNA Financing 8% Convertible Note conversion price of $10.00 per share.

The carrying amounts and fair values of the Company's financial instruments are presented below as of:

September 30, 2015

	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
Liabilities:
Warrant liability, as adjusted	$	-	$	-	$	1,315,846	$	1,315,846
Conversion feature liability		-		-		388,150		388,150
	$	-	$	-	$	1,703,996	$	1,703,996

March 31, 2015

	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
Liabilities:
Warrant liability	$	-	$	-	$	2,144,496	$	2,144,496
Conversion feature liability		-		-		442,358		442,358
	$	-	$	-	$	2,586,854	$	2,586,854

The following summarizes the activity of Level 3 inputs measured on a recurring basis for the three and six months ended September 30, 2015:

	Three Months Ended						Six Months Ended
	September 30, 2015						September 30, 2015
			Conversion						Conversion
	Warrant		Feature				Warrant		Feature
	Liability		Liability		Total		Liability		Liability		Total
Balance, beginning of period	$	2,308,620	$	491,952	$	2,800,572	$	2,144,496	$	442,358	$	2,586,854
Loss (gain) on change in fair value of warrant and conversion feature liability		(161,462)		(103,802)		(265,264)		2,662		(54,208)		(51,546)
Warrant out of period correction, as adjusted		(831,312)		-		(831,312)		(831,312)		-		(831,312)
Balance, as adjusted, end of period	$	1,315,846	$	388,150	$	1,703,996	$	1,315,846	$	388,150	$	1,703,996

The change in fair value of the warrant and conversion feature liability is included in the accompanying condensed consolidated statements of operations and comprehensive loss. The fair value of the conversion feature liability is reflected in the accompanying consolidated balance sheet together with the carrying value of the convertible notes.

Non-Controlling Interests

The non-controlling interests recorded in the Company’s condensed consolidated financial statements includes the pre-acquisition equity of those PPC’s in which the Company has determined that it has a controlling financial interest and for which consolidation is required as a result of management contracts entered into with these entities owned by third-party physicians. The nature of these contracts provide the Company with a monthly management fee to provide the services described above, and as such, the adjustments to non-controlling interests in any period subsequent to initial consolidation would relate to either capital contributions or distributions by the non-controlling parties as well as income or losses attributable to certain non-controlling interests. Non-controlling interests also represent third-party minority equity ownership interests which are majority owned by the Company.

Basic and Diluted Earnings per Share

Basic net income (loss) per share is calculated using the weighted average number of shares of the Company’s common stock issued and outstanding during a certain period, and is calculated by dividing net income (loss) by the weighted average number of shares of the Company’s common stock issued and outstanding during such period. Diluted net income (loss) per share is calculated using the weighted average number of common and potentially dilutive common shares outstanding during the period, using the as-if converted method for secured convertible notes, and the treasury stock method for options and warrants.

The following table sets forth the number of shares excluded from the computation of diluted earnings per share, as their inclusion would be anti-dilutive:

	Three Months Ended				Six Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
Options		-		-		-		365,722
Warrants		-		-		-		149,580
Convertible Notes		-		79,952		-		74,882
		-		79,952		-		590,184

New Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) amended the FASB Accounting Standards Codification and created a new Topic ASC 606, “Revenue from Contracts with Customers” (“ASC 606”). This amendment prescribes that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendment supersedes the revenue recognition requirements in Topic 605, “Revenue Recognition,” and most industry-specific guidance throughout the Industry Topics of the Codification. For annual and interim reporting periods the mandatory adoption date of ASC 606 is January 1, 2017, and there will be two methods of adoption allowed, either a full retrospective adoption or a modified retrospective adoption. The FASB recently issued ASU 2015-14 to defer the effective date of the new revenue recognition standard by one year. As such, it now takes effect for public entities in fiscal years beginning after December 15, 2017. Accordingly the revised mandatory adoption date of ASC 606 is April 1, 2018. The Company is currently evaluating the impact of ASC 606, but at the current time does not know what impact the new standard will have on revenue recognized and other accounting decisions in future periods, if any, nor what method of adoption will be selected if the impact is material.

In August 2014, the FASB amended the FASB Accounting Standards Codification and amended Subtopic 205-40, “Presentation of Financial Statements – Going Concern.” This amendment prescribes that an entity should evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. The amendments will become effective for the Company’s annual and interim reporting periods beginning April 1, 2017. The Company will begin evaluating going concern disclosures based on this guidance upon adoption.

In January 2015, the FASB issued ASU No. 2015-01, Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. This standard update eliminates the concept of extraordinary items from generally accepted accounting principles in the United States (U.S. GAAP) as part of an initiative to reduce complexity in accounting standards while maintaining or improving the usefulness of the information provided to the users of the financial statements. The presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and expanded to include items that are both unusual in nature and infrequent in occurrence. This standard update is effective for fiscal years beginning after December 15, 2015; however, earlier adoption is permitted. The adoption of this standard update is not expected to have a significant impact on our consolidated financial statements.

In February 2015, the FASB issued ASU No. 2015-02, Amendments to the Consolidation Analysis, which is included in ASC 810, Consolidation. This update changes the guidance with respect to the analyses that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. All legal entities are subject to reevaluation under the revised consolidation model. The new guidance affects the following areas: (1) limited partnerships and similar legal entities, (2) evaluating fees paid to a decision maker or a service provider as a variable interest, (3) the effect of fee arrangements on the primary beneficiary determination, (4) the effect of related parties on the primary beneficiary determination, and (5) certain investment funds. The guidance will be effective for the Company's interim and annual reporting periods beginning April 1, 2016. The standard allows the Company to transition to the new model using either a full or modified retrospective approach, and early adoption is permitted. The Company is currently evaluating the impact this standard will have on its business practices, financial condition, results of operations, and disclosures.

In April 2015, the FASB) issued ASU 2015-03, Interest – Imputation of Interest (Subtopic 835-30).  This ASU requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts.  The recognition and measurement guidance for debt issuance costs are not affected by this ASU.  The amendments in this ASU are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those years.  Early adoption is permitted for financial statements that have not been previously issued and retrospective application is required for each balance sheet presented.  The adoption of this standard update is not expected to have a significant impact on the Company’s consolidated financial statements.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ materially from these estimates under different assumptions or conditions.

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2015	Mar. 31, 2015
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Common Stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common Stock, shares authorized	100,000,000	100,000,000
Common Stock, shares issued	4,863,389	4,863,389
Common Stock, shares outstanding	4,863,389	4,863,389

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Sep. 30, 2015

Accounting Policies [Abstract]

Accounting Principles

Accounting Principles

These unaudited condensed consolidated statements reflect all adjustments, consisting of normal recurring adjustments, which, in management’s opinion, are necessary, and should be read in conjunction with the Company's Annual Report on Form 10-K/A for the fiscal year ended March 31, 2015 as filed with the SEC on July 29, 2015.

Principles of Consolidation

Principles of Consolidation

The Company’s unaudited condensed consolidated financial statements include the accounts of (1) Apollo Medical Holdings, Inc. and its wholly owned subsidiaries AMM, PCCM, and VMM, (2) the Company’s controlling interest in ApolloMed ACO, and APS, a newly formed entity which provides home health and hospice medical services and owns BCHC and HCHHA and in which a non-controlling interest in APS contributed $586,111 in cash; and (3) physician practice corporations (“PPCs”) managed under long-term management service agreements including AMH, MMG, ACC, LALC, Hendel, AKM, SCHC and BAHA. Some states have laws that prohibit business entities, such as ApolloMed, from practicing medicine, employing physicians to practice medicine, exercising control over medical decisions by physicians (collectively known as the corporate practice of medicine), or engaging in certain arrangements with physicians, such as fee-splitting. In California, the Company operates by maintaining long-term management service agreements with the PPCs, which are each owned and operated by physicians, and which employ or contract with additional physicians to provide hospitalist services. Under the management agreements, the Company provides and performs all non-medical management and administrative services, including financial management, information systems, marketing, risk management and administrative support. Each management agreement typically has a term from 10 to 20 years unless terminated by either party for cause. The management agreements are not terminable by the PPCs, except in the case of material breach or bankruptcy of the respective PPM.

Through the management agreements and the Company’s relationship with the stockholders of the PPCs, the Company has exclusive authority over all non-medical decision making related to the ongoing business operations of the PPCs. Consequently, the Company consolidates the revenue and expenses of each PPC from the date of execution of the applicable management agreement.

All intercompany balances and transactions have been eliminated in consolidation.

Business Combinations

Business Combinations

The Company uses the acquisition method of accounting for all business combinations, which requires assets and liabilities of the acquiree to be recorded at fair value (with limited exceptions), to measure the fair value of the consideration transferred, including contingent consideration, to be determined on the acquisition date, and to account for acquisition related costs separately from the business combination. 

Reportable Segments

Reportable Segments

The Company operates as one reportable segment, the healthcare delivery segment, and implements and operates innovative health care models to create a patient-centered, physician-centric experience. The Company reports its consolidated financial statements in the aggregate, including all activities in one reportable segment.

Revenue Recognition

Revenue Recognition

Revenue consists of contracted, fee-for-service, and capitation revenue. Revenue is recorded in the period in which services are rendered. Revenue is principally derived from the provision of healthcare staffing services to patients within healthcare facilities. The form of billing and related risk of collection for such services may vary by customer. The following is a summary of the principal forms of the Company’s billing arrangements and how net revenue is recognized for each.

Contracted revenue

Contracted revenue represents revenue generated under contracts for which the Company provides physician and other healthcare staffing and administrative services in return for a contractually negotiated fee. Contract revenue consists primarily of billings based on hours of healthcare staffing provided at agreed-to hourly rates. Revenue in such cases is recognized as the hours are worked by the Company’s staff and contractors. Additionally, contract revenue also includes supplemental revenue from hospitals where the Company may have a fee-for-service contract arrangement or provide physician advisory services to the medical staff at a specific facility. Contract revenue for the supplemental billing in such cases is recognized based on the terms of each individual contract. Such contract terms generally either provides for a fixed monthly dollar amount or a variable amount based upon measurable monthly activity, such as hours staffed, patient visits or collections per visit compared to a minimum activity threshold. Such supplemental revenues based on variable arrangements are usually contractually fixed on a monthly, quarterly or annual calculation basis considering the variable factors negotiated in each such arrangement. Such supplemental revenues are recognized as revenue in the period when such amounts are determined to be fixed and therefore contractually obligated as payable by the customer under the terms of the respective agreement. Additionally, the Company derives a portion of the Company’s revenue as a contractual bonus from collections received by the Company’s partners and such revenue is contingent upon the collection of third-party billings. These revenues are not considered earned and therefore not recognized as revenue until actual cash collections are achieved in accordance with the contractual arrangements for such services.

Fee-for-service revenue

Fee-for-service revenue represents revenue earned under contracts in which the Company bills and collects the professional component of charges for medical services rendered by the Company’s contracted physicians. Under the fee-for-service arrangements, the Company bills patients for services provided and receives payment from patients or their third-party payors. Fee-for-service revenue is reported net of contractual allowances and policy discounts. All services provided are expected to result in cash flows and are therefore reflected as net revenue in the financial statements. Fee-for-service revenue is recognized in the period in which the services are rendered to specific patients and reduced immediately for the estimated impact of contractual allowances in the case of those patients having third-party payor coverage. The recognition of net revenue (gross charges less contractual allowances) from such visits is dependent on such factors as proper completion of medical charts following a patient visit, the forwarding of such charts to the Company’s billing center for medical coding and entering into the Company’s billing system and the verification of each patient’s submission or representation at the time services are rendered as to the payor(s) responsible for payment of such services. Revenue is recorded based on the information known at the time of entering of such information into the Company’s billing systems as well as an estimate of the revenue associated with medical services.

Capitation revenue

Capitation revenue (net of capitation withheld to fund risk share deficits) is recognized in the month in which the Company is obligated to provide services. Minor ongoing adjustments to prior months’ capitation, primarily arising from contracted HMO‘s finalizing of monthly patient eligibility data for additions or subtractions of enrollees, are recognized in the month they are communicated to the Company. Managed care revenues of the Company consist primarily of capitated fees for medical services provided by the Company under a provider service agreement (“PSA”) or capitated arrangements directly made with various managed care providers including HMO’s and management service organizations (“MSOs”). Capitation revenue under the PSA and HMO contracts is prepaid monthly to the Company based on the number of enrollees electing the Company as their healthcare provider. Additionally, Medicare pays capitation using a “Risk Adjustment model,” which compensates managed care organizations and providers based on the health status (acuity) of each individual enrollee. Health plans and providers with higher acuity enrollees will receive more and those with lower acuity enrollees will receive less. Under Risk Adjustment, capitation is determined based on health severity, measured using patient encounter data. Capitation is paid on an interim basis based on data submitted for the enrollee for the preceding year and is adjusted in subsequent periods after the final data is compiled. Positive or negative capitation adjustments are made for Medicare enrollees with conditions requiring more or less healthcare services than assumed in the interim payments. Since the Company cannot reliably predict these adjustments, periodic changes in capitation amounts earned as a result of Risk Adjustment are recognized when those changes are communicated by the health plans to the Company.

HMO contracts also include provisions to share in the risk for enrollee hospitalization, whereby the Company can earn additional incentive revenue or incur penalties based upon the utilization of hospital services. Typically, any shared risk deficits are not payable until and unless the Company generates future risk sharing surpluses, or if the HMO withholds a portion of the capitation revenue to fund any risk share deficits. At the termination of the HMO contract, any accumulated risk share deficit is typically extinguished. Due to the lack of access to information necessary to estimate the related costs, shared-risk amounts receivable from the HMOs are only recorded when such amounts are known. Risk pools for the prior contract years are generally final settled in the third or fourth quarter of the following fiscal year.

In addition to risk-sharing revenues, the Company also receives incentives under “pay-for-performance” programs for quality medical care, based on various criteria. These incentives, which are included in other revenues, are generally recorded in the third and fourth quarters of the fiscal year and are recorded when such amounts are known.

Under full risk capitation contracts, an affiliated hospital enters into agreements with several HMOs, pursuant to which, the affiliated hospital provides hospital, medical, and other healthcare services to enrollees under a fixed capitation arrangement (“Capitation Arrangement”). Under the risk pool sharing agreement, the affiliated hospital and medical group agree to establish a Hospital Control Program to serve the enrollees, pursuant to which, the medical group is allocated a percentage of the profit or loss, after deductions for costs to affiliated hospitals. The Company participates in full risk programs under the terms of the PSA, with health plans whereby the Company is wholly liable for the deficits allocated to the medical group under the arrangement. The related liability is included in medical liabilities in the accompanying consolidated balance sheets at September 30, 2015 and March 31, 2015. (See Note 2 "Medical Liabilities" below).

Medicare Shared Savings Program Revenue

The Company through its subsidiary, ApolloMed ACO, participates in the MSSP sponsored by CMS. The MSSP allows ACO participants to share in cost savings it generates in connection with rendering medical services to Medicare patients. Payments to ACO participants, if any, will be calculated annually by CMS on cost savings generated by the ACO participant relative to the ACO participants’ CMS benchmark. The MSSP is a relatively new program managed by CMS that has an evolving payment methodology. The Company considers revenue, if any, under the MSSP, as contingent upon the realization of program savings as determined by CMS, and are not considered earned and therefore are not recognized as revenue until notice from CMS that cash payments are to be imminently received.

Although ApolloMed ACO beat its total benchmark expenditures for 2014, generating $3.9 million in total savings and achieving an ACO Quality Score of 90.4% on its Quality Performance Report, CMS has determined that the Company did not meet the minimum savings threshold and therefore will not receive any incentive payment in fiscal year 2016.

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash and cash equivalents consists of highly liquid investments with an initial maturity of three months or less at date of purchase to be cash equivalents.

Restricted Cash

Restricted Cash

Restricted cash primarily consists of cash held as collateral to secure standby letters of credits as required by certain contracts associated with Maverick Medical Group. The certificates have an interest rate of 0.15%. 

Goodwill and Intangible Assets

Goodwill and Intangible Assets

Under FASB ASC 350, Intangibles – Goodwill and Other (“ASC 350”), goodwill and indefinite-lived intangible assets are reviewed at least annually for impairment. Acquired intangible assets with definite lives are amortized over their individual useful lives.

At least annually, management assesses whether there has been any impairment in the value of goodwill by first comparing the fair value to the net carrying value. If the carrying value exceeds its estimated fair value, a second step is performed to compute the amount of the impairment. An impairment loss is recognized if the implied fair value of the asset being tested is less than its carrying value. In this event, the asset is written down accordingly. The fair values of goodwill are determined using valuation techniques based on estimates, judgments and assumptions management believes are appropriate in the circumstances. The fair value is evaluated based on market capitalization determined using average share prices within a reasonable period of time near the selected testing date (i.e., fiscal year-end).

At least annually, indefinite-lived intangible assets are tested for impairment. Impairment for intangible assets with indefinite lives exists if the carrying value of the intangible asset exceeds its fair value. The fair values of indefinite-lived intangible assets are determined using valuation techniques based on estimates, judgments and assumptions management believes are appropriate in the circumstances.

Accounts Receivable and Allowance for Doubtful Accounts

Accounts Receivable and Allowance for Doubtful Accounts

Accounts receivable primarily consists of amounts due from third-party payors, including government sponsored Medicare and Medicaid programs, insurance companies, and amounts due from hospitals and patients. Accounts receivable are recorded and stated at the amount expected to be collected.

The Company maintains reserves for potential credit losses on accounts receivable. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends and changes in customer payment patterns to evaluate the adequacy of these reserves. The Company also regularly analyses the ultimate collectability of accounts receivable after certain stages of the collection cycle using a look-back analysis to determine the amount of receivables subsequently collected and adjustments are recorded when necessary. Reserves are recorded primarily on a specific identification basis.

Concentrations

Concentrations

The Company had major payors that contributed the following percentage of net revenue:

	Three Months Ended					Six Months Ended
	September 30,					September 30,
	2015			2014		2015			2014
Medicare/Medi-Cal		32.7	%		*		33.8	%		*
L.A Care		16.0	%		**		14.6	%		**
Healthnet		11.3	%		**		12.4	%		**
Hollywood Presbyterian		*			*		*			*
California Hospital Medical Center		*			*		*			*

 * Represents less than 10%

** Not a payor during this time period

Receivables from one payor amounted to the following percentage of total accounts receivable:

	September 30, 2015			March 31, 2015
Medicare/Medi-Cal		30.9	%		22.1	%

Medical Liabilities

Medical Liabilities

The Company is responsible for integrated care that the associated physicians and contracted hospitals provide to its enrollees under risk-pool arrangements. The Company provides integrated care to health plan enrollees through a network of contracted providers under sub-capitation and direct patient service arrangements, company-operated clinics and staff physicians. Medical costs for professional and institutional services rendered by contracted providers are recorded as cost of services in the accompanying condensed consolidated statements of operations and comprehensive loss. Costs for operating medical clinics, including the salaries of medical personnel, are also recorded in cost of services, while non-medical personnel and support costs are included in general and administrative expense.

An estimate of amounts due to contracted physicians, hospitals, and other professional providers is included in medical liabilities in the accompanying condensed consolidated balance sheets. Medical liabilities include claims reported as of the balance sheet date and estimates of incurred but not reported claims (“IBNR”). Such estimates are developed using actuarial methods and are based on many variables, including the utilization of health care services, historical payment patterns, cost trends, product mix, seasonality, changes in membership, and other factors. The estimation methods and the resulting reserves are periodically reviewed and updated. Many of the medical contracts are complex in nature and may be subject to differing interpretations regarding amounts due for the provision of various services. Such differing interpretations may not come to light until a substantial period of time has passed following the contract implementation. The Company has a $20,000 per member professional stop-loss, none on institutional risk pools. Any adjustments to reserves are reflected in current operations.

The Company’s medical liabilities were as follows:

	Six Months
	Ended		Year Ended
	September 30,		March 31,
	2015		2015
Balance, beginning of period	$	1,260,549	$	552,561
Incurred health care costs:
Current year		3,308,542		4,211,231
Acquired medical liabilities (see Note 3)		-		458,378
Claims paid:
Current year		(2,167,473)		(3,245,283)
Prior years		(993,785)		(90,367)
Total claims paid		(3,161,258)		(3,335,650)
Risk pool settlement		-		(384,869)
Accrual for net deficit from full risk capitation contracts		19,632		544,041
Adjustments		(90,278)		(785,143)
Balance , end of period	$	1,337,187	$	1,260,549

Deferred Financing Costs

Deferred Financing Costs

Costs relating to debt issuance have been deferred and are amortized over the lives of the respective loans, using the effective interest method (see Note 6).

At March 31, 2015, there was approximately $514,000 of deferred financing costs related to the Company’s anticipated public offering which was anticipated to close during the second quarter of fiscal 2016. During the six months ended September 30, 2015, it was determined the offering would be postponed more than 90 days and these costs, which included legal, accounting and regulatory fees, were expensed to general and administrative expense in the six months ended September 30, 2015. 

Income Taxes

Income Taxes

Federal and state income taxes are computed at currently enacted tax rates less tax credits using the asset and liability method. Deferred taxes are adjusted both for items that do not have tax consequences and for the cumulative effect of any changes in tax rates from those previously used to determine deferred tax assets or liabilities. Tax provisions include amounts that are currently payable, changes in deferred tax assets and liabilities that arise because of temporary differences between the timing of when items of income and expense are recognized for financial reporting and income tax purposes, changes in the recognition of tax positions and any changes in the valuation allowance caused by a change in judgment about the realizability of the related deferred tax assets. A valuation allowance is established when necessary to reduce deferred tax assets to amounts expected to be realized.

The Company uses a recognition threshold of more-likely-than-not and a measurement attribute on all tax positions taken or expected to be taken in a tax return in order to be recognized in the financial statements. Once the recognition threshold is met, the tax position is then measured to determine the actual amount of benefit to recognize in the financial statements.

Stock-Based Compensation

Stock-Based Compensation

The Company maintains a stock-based compensation program for employees, non-employees, directors and consultants, which is more fully described in Note 9. The value of stock-based awards so measured is recognized as compensation expense on a cumulative straight-line basis over the vesting terms of the awards, adjusted for expected forfeitures. The Company sells certain of its restricted common stock to its employees, directors and consultants with a right (but not obligation) of repurchase feature that lapses based on performance of services in the future.

The Company accounts for share-based awards granted to persons other than employees and directors under ASC 505-50 Equity-Based Payments to Non-Employees. As such the fair value of such shares is periodically re-measured using an appropriate valuation model and income or expense is recognized over the vesting period.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

The Company’s accounting for Fair Value Measurement and Disclosures defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This topic also establishes a fair value hierarchy which requires classification based on observable and unobservable inputs when measuring fair value. The fair value hierarchy distinguishes between assumptions based on market data (observable inputs) and an entity’s own assumptions (unobservable inputs). The hierarchy consists of three levels:

Level one — Quoted market prices in active markets for identical assets or liabilities;

Level two — Inputs other than level one inputs that are either directly or indirectly observable; and

Level three — Unobservable inputs developed using estimates and assumptions, which are developed by the reporting entity and reflect those assumptions that a market participant would use.

Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures each quarter.

The fair values of the Company’s financial instruments are measured on a recurring basis. The carrying amount reported in the accompanying condensed consolidated balance sheets for cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximates fair value because of the short-term maturity of those instruments. The carrying amount for borrowings under the Term Loan and the Convertible Notes with NNA approximates fair value which is determined by using interest rates that are available for similar debt obligations with similar terms at the balance sheet date.

Out of Period Correction

During the quarter ended September 30, 2015, following a review of the terms of certain derivative instruments entered into on March 28, 2014, management determined that a warrant liability was incorrectly valued which resulted in certain amounts being incorrectly stated in prior periods. Based on an analysis of the resulting adjustments, management determined that the prior financial statements were not considered to be materially misstated. Accordingly, the Company recorded an out of period correction in the current period to properly record the valuation of its warrant liability, unamortized debt discount and deferred financing costs. The following is a summary of the out of period correction made as of September 30, 2015:  

	As of and for the three months ended June 30, 2015 (as filed, before NNA error adjustment)		Out-of- period correction adjustment booked during the three months ended September 30, 2015		As of and for the three months ended June 30, 2015 (as adjusted)
Deferred financing costs	$	235,093	$	14,937	$	250,030
Note and line of credit payable, net of discount	$	6,624,548	$	764,208	$	7,388,756
Warrant liability	$	2,308,620	$	(831,312)	$	1,477,308
Interest expense	$	360,402	$	(250,453)	$	109,949
Loss on change in fair value of warrant and conversion feature liabilities	$	213,718	$	168,412	$	382,130

The fair value of the warrant liability of $1,315,846 at September 30, 2015 related to the warrants issued in connection with the 2014 NNA financing was estimated at September 30, 2015 using the Monte Carlo valuation model which used the following inputs: term of 5.5 years, risk free rate of 1.37%, no dividends, volatility of 58.1%, share price of $5.10 per share based on the trading price of the Company’s common stock adjusted for a marketability discount, and a 50% probability of down-round financing, after taking into account the above adjustment. 

The fair value of the warrant liability of $2,144,496 at March 31, 2015 was estimated at March 31, 2015 using the Monte Carlo valuation model which used the following inputs: term of 6.0 years, risk free rate of 1.53%, no dividends, volatility of 57.4%, share price of $5.00 per share based on the trading price of the Company’s common stock adjusted for a marketability discount, and a 50% probability of down-round financing.

Conversion feature liability

The fair value of the $388,150 conversion feature liability (included in convertible note payable) at September 30, 2015 issued in connection with the 2014 NNA financing 8% Convertible Note was estimated using the Monte Carlo valuation model which used the following inputs: term of 3.5 years, risk free rate of 1.0%, no dividends, volatility of 45.5%, share price of $5.10 per share based on the trading price of the Company’s common stock adjusted for a marketability discount, and a 100% probability that the Company will participate in a “down-round” financing at price per share lower than the initial NNA Financing 8% Convertible Note conversion price of $10.00 per share. The fair value of the $442,358 conversion feature liability (included in convertible note payable) at March 31, 2015 issued in connection with the 2014 NNA financing 8% Convertible Note was estimated using the Monte Carlo valuation model which used the following inputs: term of 4.0 years, risk free rate of 1.1%, no dividends, volatility of 47.6%, share price of $5.00 per share based on the trading price of the Company’s common stock adjusted for a marketability discount, and a 100% probability that the Company will participate in a “down-round” financing at price per share lower than the initial NNA Financing 8% Convertible Note conversion price of $10.00 per share.

The carrying amounts and fair values of the Company's financial instruments are presented below as of:

September 30, 2015

	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
Liabilities:
Warrant liability, as adjusted	$	-	$	-	$	1,315,846	$	1,315,846
Conversion feature liability		-		-		388,150		388,150
	$	-	$	-	$	1,703,996	$	1,703,996

March 31, 2015

	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
Liabilities:
Warrant liability	$	-	$	-	$	2,144,496	$	2,144,496
Conversion feature liability		-		-		442,358		442,358
	$	-	$	-	$	2,586,854	$	2,586,854

The following summarizes the activity of Level 3 inputs measured on a recurring basis for the three and six months ended September 30, 2015:

	Three Months Ended						Six Months Ended
	September 30, 2015						September 30, 2015
			Conversion						Conversion
	Warrant		Feature				Warrant		Feature
	Liability		Liability		Total		Liability		Liability		Total
Balance, beginning of period	$	2,308,620	$	491,952	$	2,800,572	$	2,144,496	$	442,358	$	2,586,854
Loss (gain) on change in fair value of warrant and conversion feature liability		(161,462)		(103,802)		(265,264)		2,662		(54,208)		(51,546)
Warrant out of period correction, as adjusted		(831,312)		-		(831,312)		(831,312)		-		(831,312)
Balance, as adjusted, end of period	$	1,315,846	$	388,150	$	1,703,996	$	1,315,846	$	388,150	$	1,703,996

The change in fair value of the warrant and conversion feature liability is included in the accompanying condensed consolidated statements of operations and comprehensive loss. The fair value of the conversion feature liability is reflected in the accompanying consolidated balance sheet together with the carrying value of the convertible notes.

Non-controlling Interests

Non-Controlling Interests

The non-controlling interests recorded in the Company’s condensed consolidated financial statements includes the pre-acquisition equity of those PPC’s in which the Company has determined that it has a controlling financial interest and for which consolidation is required as a result of management contracts entered into with these entities owned by third-party physicians. The nature of these contracts provide the Company with a monthly management fee to provide the services described above, and as such, the adjustments to non-controlling interests in any period subsequent to initial consolidation would relate to either capital contributions or distributions by the non-controlling parties as well as income or losses attributable to certain non-controlling interests. Non-controlling interests also represent third-party minority equity ownership interests which are majority owned by the Company.

Basic and Diluted Earnings per Share

Basic and Diluted Earnings per Share

Basic net income (loss) per share is calculated using the weighted average number of shares of the Company’s common stock issued and outstanding during a certain period, and is calculated by dividing net income (loss) by the weighted average number of shares of the Company’s common stock issued and outstanding during such period. Diluted net income (loss) per share is calculated using the weighted average number of common and potentially dilutive common shares outstanding during the period, using the as-if converted method for secured convertible notes, and the treasury stock method for options and warrants.

The following table sets forth the number of shares excluded from the computation of diluted earnings per share, as their inclusion would be anti-dilutive:

	Three Months Ended				Six Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
Options		-		-		-		365,722
Warrants		-		-		-		149,580
Convertible Notes		-		79,952		-		74,882
		-		79,952		-		590,184

New Accounting Pronouncements

New Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) amended the FASB Accounting Standards Codification and created a new Topic ASC 606, “Revenue from Contracts with Customers” (“ASC 606”). This amendment prescribes that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendment supersedes the revenue recognition requirements in Topic 605, “Revenue Recognition,” and most industry-specific guidance throughout the Industry Topics of the Codification. For annual and interim reporting periods the mandatory adoption date of ASC 606 is January 1, 2017, and there will be two methods of adoption allowed, either a full retrospective adoption or a modified retrospective adoption. The FASB recently issued ASU 2015-14 to defer the effective date of the new revenue recognition standard by one year. As such, it now takes effect for public entities in fiscal years beginning after December 15, 2017. Accordingly the revised mandatory adoption date of ASC 606 is April 1, 2018. The Company is currently evaluating the impact of ASC 606, but at the current time does not know what impact the new standard will have on revenue recognized and other accounting decisions in future periods, if any, nor what method of adoption will be selected if the impact is material.

In August 2014, the FASB amended the FASB Accounting Standards Codification and amended Subtopic 205-40, “Presentation of Financial Statements – Going Concern.” This amendment prescribes that an entity should evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. The amendments will become effective for the Company’s annual and interim reporting periods beginning April 1, 2017. The Company will begin evaluating going concern disclosures based on this guidance upon adoption.

In January 2015, the FASB issued ASU No. 2015-01, Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. This standard update eliminates the concept of extraordinary items from generally accepted accounting principles in the United States (U.S. GAAP) as part of an initiative to reduce complexity in accounting standards while maintaining or improving the usefulness of the information provided to the users of the financial statements. The presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and expanded to include items that are both unusual in nature and infrequent in occurrence. This standard update is effective for fiscal years beginning after December 15, 2015; however, earlier adoption is permitted. The adoption of this standard update is not expected to have a significant impact on our consolidated financial statements.

In February 2015, the FASB issued ASU No. 2015-02, Amendments to the Consolidation Analysis, which is included in ASC 810, Consolidation. This update changes the guidance with respect to the analyses that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. All legal entities are subject to reevaluation under the revised consolidation model. The new guidance affects the following areas: (1) limited partnerships and similar legal entities, (2) evaluating fees paid to a decision maker or a service provider as a variable interest, (3) the effect of fee arrangements on the primary beneficiary determination, (4) the effect of related parties on the primary beneficiary determination, and (5) certain investment funds. The guidance will be effective for the Company's interim and annual reporting periods beginning April 1, 2016. The standard allows the Company to transition to the new model using either a full or modified retrospective approach, and early adoption is permitted. The Company is currently evaluating the impact this standard will have on its business practices, financial condition, results of operations, and disclosures.

In April 2015, the FASB) issued ASU 2015-03, Interest – Imputation of Interest (Subtopic 835-30).  This ASU requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts.  The recognition and measurement guidance for debt issuance costs are not affected by this ASU.  The amendments in this ASU are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those years.  Early adoption is permitted for financial statements that have not been previously issued and retrospective application is required for each balance sheet presented.  The adoption of this standard update is not expected to have a significant impact on the Company’s consolidated financial statements.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ materially from these estimates under different assumptions or conditions.

XML

Document And Entity Information - shares	6 Months Ended
	Sep. 30, 2015	Nov. 10, 2015
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q2
Entity Registrant Name	Apollo Medical Holdings, Inc.
Entity Central Index Key	0001083446
Current Fiscal Year End Date	--03-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	AMEH
Entity Common Stock, Shares Outstanding		4,863,389

XML

Summary of Significant Accounting Policies (Tables)

6 Months Ended

Sep. 30, 2015

Accounting Policies [Abstract]

Schedule of Revenue by Major Customers by Reporting Segments

The Company had major payors that contributed the following percentage of net revenue:

	Three Months Ended					Six Months Ended
	September 30,					September 30,
	2015			2014		2015			2014
Medicare/Medi-Cal		32.7	%		*		33.8	%		*
L.A Care		16.0	%		**		14.6	%		**
Healthnet		11.3	%		**		12.4	%		**
Hollywood Presbyterian		*			*		*			*
California Hospital Medical Center		*			*		*			*

 * Represents less than 10%

** Not a payor during this time period

Receivables from one payor amounted to the following percentage of total accounts receivable:

	September 30, 2015			March 31, 2015
Medicare/Medi-Cal		30.9	%		22.1	%

Schedule of Medical Payables

The Company’s medical liabilities were as follows:

	Six Months
	Ended		Year Ended
	September 30,		March 31,
	2015		2015
Balance, beginning of period	$	1,260,549	$	552,561
Incurred health care costs:
Current year		3,308,542		4,211,231
Acquired medical liabilities (see Note 3)		-		458,378
Claims paid:
Current year		(2,167,473)		(3,245,283)
Prior years		(993,785)		(90,367)
Total claims paid		(3,161,258)		(3,335,650)
Risk pool settlement		-		(384,869)
Accrual for net deficit from full risk capitation contracts		19,632		544,041
Adjustments		(90,278)		(785,143)
Balance , end of period	$	1,337,187	$	1,260,549

Schedule of Adjustment of Warrant Liability

The following is a summary of the out of period correction made as of September 30, 2015:  

	As of and for the three months ended June 30, 2015 (as filed, before NNA error adjustment)		Out-of- period correction adjustment booked during the three months ended September 30, 2015		As of and for the three months ended June 30, 2015 (as adjusted)
Deferred financing costs	$	235,093	$	14,937	$	250,030
Note and line of credit payable, net of discount	$	6,624,548	$	764,208	$	7,388,756
Warrant liability	$	2,308,620	$	(831,312)	$	1,477,308
Interest expense	$	360,402	$	(250,453)	$	109,949
Loss on change in fair value of warrant and conversion feature liabilities	$	213,718	$	168,412	$	382,130

Fair Value Measurements, Recurring and Nonrecurring

The carrying amounts and fair values of the Company's financial instruments are presented below as of:

September 30, 2015

	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
Liabilities:
Warrant liability, as adjusted	$	-	$	-	$	1,315,846	$	1,315,846
Conversion feature liability		-		-		388,150		388,150
	$	-	$	-	$	1,703,996	$	1,703,996

March 31, 2015

	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
Liabilities:
Warrant liability	$	-	$	-	$	2,144,496	$	2,144,496
Conversion feature liability		-		-		442,358		442,358
	$	-	$	-	$	2,586,854	$	2,586,854

Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation

The following summarizes the activity of Level 3 inputs measured on a recurring basis for the three and six months ended September 30, 2015:

	Three Months Ended						Six Months Ended
	September 30, 2015						September 30, 2015
			Conversion						Conversion
	Warrant		Feature				Warrant		Feature
	Liability		Liability		Total		Liability		Liability		Total
Balance, beginning of period	$	2,308,620	$	491,952	$	2,800,572	$	2,144,496	$	442,358	$	2,586,854
Loss (gain) on change in fair value of warrant and conversion feature liability		(161,462)		(103,802)		(265,264)		2,662		(54,208)		(51,546)
Warrant out of period correction, as adjusted		(831,312)		-		(831,312)		(831,312)		-		(831,312)
Balance, as adjusted, end of period	$	1,315,846	$	388,150	$	1,703,996	$	1,315,846	$	388,150	$	1,703,996

Basic and Diluted Earnings per Share

The following table sets forth the number of shares excluded from the computation of diluted earnings per share, as their inclusion would be anti-dilutive:

	Three Months Ended				Six Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
Options		-		-		-		365,722
Warrants		-		-		-		149,580
Convertible Notes		-		79,952		-		74,882
		-		79,952		-		590,184

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Net revenues	$ 11,369,607	$ 11,665,294	$ 21,573,734	$ 15,759,780
Costs and expenses
Cost of services	8,264,189	6,161,645	15,832,057	9,421,484
General and administrative	3,440,641	3,451,907	7,677,846	5,461,239
Depreciation and amortization	77,684	193,281	141,435	205,180
Total costs and expenses	11,782,514	9,806,833	23,651,338	15,087,903
(Loss) income from operations	(412,907)	1,858,461	(2,077,604)	671,877
Other (expense) income
Interest expense	(68,818)	(329,258)	(429,220)	(606,125)
Gain (loss) on change in fair value of warrant and conversion feature liabilities	96,852	152,140	(116,866)	122,135
Other	(95,092)	(58,436)	5,912	(60,912)
Total other expense	(67,058)	(235,554)	(540,174)	(544,902)
(Loss) income before provision for income taxes	(479,965)	1,622,907	(2,617,778)	126,975
Income tax (benefit) provision	(186,138)	86,989	(93,447)	98,591
Net (loss) income	(293,827)	1,535,918	(2,524,331)	28,384
Net income attributable to non-controlling interest	(237,539)	(159,608)	(489,401)	(329,815)
Net (loss) income attributable to Apollo Medical Holdings, Inc.	(531,366)	1,376,310	(3,013,732)	(301,431)
Other comprehensive gain:
Unrealized gain on change in value of marketable securities	0	14,499	0	33,088
Comprehensive (loss) income	$ (531,366)	$ 1,390,809	$ (3,013,732)	$ (268,343)
NET LOSS PER SHARE:
BASIC	$ (0.11)	$ 0.28	$ (0.62)	$ (0.06)
DILUTED	$ (0.11)	$ 0.26	$ (0.62)	$ (0.06)
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING:
BASIC	4,863,389	4,913,455	4,863,389	4,913,455
DILUTED	4,863,389	5,439,344	4,863,389	4,913,455

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Convertible Notes Payable

6 Months Ended

Sep. 30, 2015

Convertible Notes [Abstract]

Convertible Notes Payable

7. Convertible Notes Payable

Convertible notes payable consist of the following:

	September 30,		March 31,
	2015		2015
9% Senior Subordinated Convertible Notes due February 15, 2016, net of debt discount of $24,770 (September 30, 2015) and $62,182 (March 31, 2015)	$	1,075,230	$	1,037,818
8% Senior Subordinated Convertible Note Payable to NNA due March 28, 2019, net of debt discount of $913,904 (September 30, 2015) and $985,255 (March 31, 2015)		1,086,096		1,014,745
Conversion feature liability		388,150		442,358
	$	2,549,476	$	2,494,921

9% Senior Subordinated Callable Convertible Promissory Notes due February 15, 2016

The 9% Notes, issued January 31, 2013, bear interest at a rate of 9% per annum, payable semi-annually on August 15 and February 15, and mature February 15, 2016, and are subordinated. The principal of the 9% Notes, plus any accrued yet unpaid interest, is convertible, at any time by the holder at a conversion price of $4.00 per share, subject to adjustment for stock splits, stock dividends and reverse stock splits, into shares of the Company’s common stock. On 60 days’ prior notice, the 9% Notes are callable in full or in part by the Company at any time after January 31, 2015. If the Average Daily Value of Trades (“ADVT”) during the prior 90 days as reported by Bloomberg is greater than $100,000, the 9% Notes are callable at a price of 105% of the 9% Notes’ par value, and if the ADVT is less than $100,000, the 9% Notes are callable at a price of 110% of the 9% Notes’ par value.

In connection with the issuance of the 9% Notes, the holders of the 9% Notes received warrants to purchase 66,000 shares of the Company’s common stock at an exercise price of $4.50 per share, subject to adjustment for stock splits, reverse stock splits and stock dividends, which warrants are exercisable at any date prior to January 31, 2018, and were classified in equity. The $186,897 fair value of the 9% Notes warrants was based on the Company’s closing stock price at the transaction date and inputs to the Black-Scholes option pricing model: term of 5.0 years, risk free rate of 0.70%, and volatility of 36.7%.

8% Convertible Note Payable to NNA

The NNA 8% Convertible Note commitment provided for the Company to borrow up to $2,000,000. On July 31, 2014, the Company exercised its option to borrow $2,000,000, received $2,000,000 of proceeds and recorded a debt discount of $1,065,775 related to the fair value of a conversion feature liability and a warrant liability discussed below. Borrowings bear interest at the rate of 8.0 % per annum payable semi-annually, are due March 28, 2019, and are convertible into shares of the Company’s common stock at an initial exercise price of $10.00 per share, subject to adjustment for stock splits, stock dividends and reverse stock splits. The conversion price is also subject to adjustment in the event of subsequent down-round equity financings, if any, by the Company. The conversion feature included a non-standard anti-dilution feature that has been bifurcated and recorded as a conversion feature liability at the issuance date of $578,155. The fair value of the conversion feature liability issued in connection with the 8% Convertible Note at September 30, 2015 was estimated using the Monte Carlo valuation model which used the following inputs: term of 3.7 years, risk free rate of 1.3%, no dividends, volatility of 48.6%, share price of $6.90 per share based on the trading price of the Company’s common stock adjusted for a marketability discount, and a 100% probability of down-round financing. In addition the Company was required to issue 100,000 warrants to NNA with an initial exercise price of $10.00 per share, subject to adjustment for stock splits, stock dividends and reverse stock splits. The conversion price will also be subject to adjustment in the event of subsequent down-round financings, if any, by the Company. The fair value of the warrant liability related to 100,000 common shares issuable in connection with the 8% Convertible Note as of September 30, 2015 was estimated using the Monte Carlo valuation model which used the following inputs: term of 5.7 years, risk free rate of 1.8%, no dividends, volatility of 57.6%, share price of $6.90 per share based on the trading price of the Company’s common stock adjusted for a marketability discount, and a 100% probability of down-round financing.

From the proceeds of the transactions with NMM (see Note 11 to the Notes to the Condensed Consolidated Financial Statements) on October 15, 2015, the Company repaid its outstanding term loan and revolving credit facility with NNA pursuant to the Credit Agreement in the then-outstanding aggregate amount of $7,304,506, consisting of $7,282,500 principal plus $22,006 of accrued interest.

Additionally, NNA has agreed in principle to convert the Convertible Note and exercise all of its related Warrants (See Note 11 to the Notes to the Unaudited Condensed Consolidated Financial Statements).

Interest expense associated with the convertible notes payable consisted of the following:

	Three Months Ended				Six Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
Interest expense	$	66,102	$	52,856	$	131,571	$	77,881
Amortization of loan fees and discount		73,568		60,884		144,219		97,322
	$	139,670	$	113,740	$	275,790	$	175,203

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Notes and Lines of Credit Payable

6 Months Ended

Sep. 30, 2015

Notes Payable [Abstract]

Notes and Line of Credit Payable

6. Notes and Lines of Credit Payable

Notes and lines of credit payable consist of the following:

	September 30,		March 31,
	2015		2015
Term loan payable to NNA due March 28, 2019, net of debt discount of $217,316 (September 30, 2015) and $1,060,401 (March 31, 2015)	$	6,187,684	$	5,467,098
Line of credit payable to NNA due March 28, 2019		1,000,000		1,000,000
Unsecured revolving line of credit due to financial institution due June 5, 2016		94,764		94,764
	$	7,282,448	$	6,561,862

NNA Credit Agreements

On October 15, 2013, the Company entered into a $2.0 million secured revolving credit facility (the “Revolving Credit Agreement”) with NNA, an affiliate of Fresenius Medical Care Holdings, Inc.  On December 20, 2013 the Company entered into the First Amendment to the Credit Agreement (the “Amended Credit Agreement”), which increased the revolving credit facility from $2 million to $4 million. The proceeds of the Amended Credit Agreement were used by the Company to repay the $500,000 Note to SpaGus Apollo, LLC, and pay or repay certain of the Company’s 10% Notes (see Note 7 to the Notes to the Unaudited Condensed Consolidated Financial Statements), to refinance certain other indebtedness of the Company, and for working capital and general corporate purposes. The Amended Credit Agreement was refinanced on March 28, 2014 in connection with 2014 NNA financing, as described in more detail immediately below.

Pursuant to the Amended Credit Agreement, NNA has the right to designate one director and one observer to the Board of Directors; however, as of September 30, 2015, NNA has not exercised this right.

2014 NNA Financing

On March 28, 2014, the Company entered into a Credit Agreement (the “Credit Agreement”) pursuant to which NNA, extended to the Company (i) a $1,000,000 revolving line of credit (the “Revolving Loan”) and (ii) a $7,000,000 term loan (the “Term Loan”). The Company drew down the full amount of the Revolving Loan on October 23, 2014. The Term Loan and Revolving Loan was to mature on March 28, 2019, subject to NNA’s right to accelerate payment on the occurrence of certain events. The Term Loan may be prepaid at any time without penalty or premium. The loans made under the Credit Agreement are secured by substantially all of the Company’s assets, and are guaranteed by the Company’s subsidiaries and consolidated medical corporations. The guarantees of these subsidiaries and consolidated entities are in turn secured by substantially all of the assets of the subsidiaries and consolidated entities providing the guaranty.

Concurrently with the Credit Agreement, the Company entered into a Pledge and Security Agreement with NNA (the “Pledge and Security Agreement”), whereby all of the issued and outstanding shares, interests or other equivalents of capital stock of a direct subsidiary of the Company (not including any entity that carries on the practice of medicine) are considered pledged interests. Pledged interests as of the date of the Pledge and Security Agreement include 100% of AMM, PCCM, VMM common stock and 72.77% of ApolloMed ACO common stock.

Concurrently with the Credit Agreement, the Company entered into an Investment Agreement with NNA (the “Investment Agreement”), pursuant to which the Company issued to NNA an 8% Convertible Note in the original principal amount of $2,000,000 (the “Convertible Note”). The Company drew down the full principal amount of the Convertible Note on July 30, 2014 (see Note 7). The Convertible Note matures on March 28, 2019, subject to NNA’s right to accelerate payment on the occurrence of certain events. The Company may redeem amounts outstanding under the Convertible Note on 60 days’ prior notice to NNA. Amounts outstanding under the Convertible Note are convertible at NNA’s sole election into shares of the Company’s common stock at an initial conversion price of $10.00 per share. The Company’s obligations under the Convertible Note are guaranteed by its subsidiaries and consolidated medical corporations.

On February 6, 2015, the Company entered into a First Amendment and Acknowledgement (the “Acknowledgement”) with NNA, Warren Hosseinion, M.D., and Adrian Vazquez, M.D. The Acknowledgement amended some provisions of, and/or provided waivers in connection with, each of (i) the Registration Rights Agreement between the Company and NNA, dated March 28, 2014 (the “Registration Rights Agreement”), (ii) the Investment Agreement, (iii) the NNA Convertible Note, and (iv) the NNA Warrants. The amendments to the Registration Rights Agreement included amendments with respect to the timing of the filing deadline for a resale registration statement covering the sale of NNA’s registrable securities.

Under the Investment Agreement, the Company issued to NNA warrants to purchase up to 300,000 shares of the Company’s common stock at an initial exercise price of $10.00 per share and warrants to purchase up to 200,000 shares of the Company’s common stock at an initial exercise price of $20.00 per share (collectively, the “Warrants”).

The Company determined the fair value of the proceeds of $9.0 million in part based on the following inputs for the warrant liability: term of 7 years, risk free rate of 2.31%, no dividends, volatility of 71.4%, share price of $4.50 per share and a 50% probability of down-round financing. The common stock issuance was recorded at $899,739 (a discount of $1,100,261 to the face amount), the Term Loan was recorded at $5,745,637 (a discount of $1,254,363 to the face amount), and a corresponding warrant liability of $2,354,624 was recorded. 

During the three months ended September 30, 2015, management determined that the valuation of certain derivative instruments entered into on March 28, 2014, was incorrect which resulted in certain amounts being incorrectly stated in prior periods. Accordingly, the Company recorded an out of period correction in the current period increasing debt issuance cost and debt discount by $26,117 and $990,838, respectively, and decreasing warrant liability and financing expense by $999,724 and $35,004, respectively, as of and for the two month period ended March 31, 2014. These out of period corrections reflect the correct balances of the debt issuance costs, note (net of discount) and warrant liability of NNA of $176,218, $6,685,402 and $1,354,900, respectively, as of March 31, 2014 (see Note 2 to the Notes to the Unaudited Condensed Consolidated Financial Statements). 

The Term Loan accrues interest at a rate of 8.0% per annum. A portion of the principal amount of the Term Loan is repaid on the last business day of each calendar quarter, which provides for quarterly payments of $87,500 in the first year, $122,500 in the second year, $122,500 in the third year, $175,000 in the fourth year, and $210,000 in the fifth year. The Term Loan reflected an original issue discount of $1,305,435 associated with the issuance of 300,000 warrants to acquire the Company’s common stock (see Note 9 to the Notes to the Unaudited Condensed Consolidated Financial Statements) and payment of a fee to NNA of $80,000 of which $51,072 was considered a debt discount, $7,998 was recorded to equity, and $20,930 allocated to warrant liability was immediately recorded as interest expense. The discount will be amortized to interest expense over the expected term of the loan using the effective interest method.

The Revolving Loan bears interest at the rate of three month LIBOR plus 6.0% per annum. The Company had borrowed $1,000,000 under the Revolving Loan at September 30, 2015 and March 31, 2015. As of September 30, 2015, there are no remaining amounts available to be borrowed under the Revolving Loan. The Term Loan and Revolving Loan were to mature on March 28, 2019.

The Company incurred $235,119 in third party costs related to the 2014 NNA financing, which were allocated to the related debt and equity instruments based on their relative fair values, of which $176,218, as adjusted, after out-of-period correction as discussed in Note 2, was classified as deferred financing costs which will be deferred and amortized over the life of the loan using the effective interest method.

The Credit Agreement and the Convertible Note provide for certain financial covenants. On February 16, 2015, the Company and NNA agreed to amend the tangible net worth covenant computation.

In addition, the Credit Agreement and the Convertible Note include: (1) certain negative covenants that, subject to exceptions, limit the Company’s ability to, among other things, incur additional indebtedness, engage in future mergers, consolidations, liquidations and dissolutions, sell assets, pay dividends and distributions on or repurchase capital stock, and enter into or amend other material agreements; and (2) certain customary representations and warranties, affirmative covenants and events of default, which are set forth in more detail in the 2014 NNA financing credit agreement and Convertible Note.

On July 7, 2015, the Company entered into an Amendment to First Amendment and Acknowledgement (the “New Amendment”) with NNA. The New Amendment amended the Acknowledgement and included an extension until October 15, 2015 of a deadline previously contemplated by the Acknowledgement, for the Company to file a registration statement covering the sale of NNA’s registrable securities.

On August 18, 2015, the Company entered into a Waiver and Consent (“Waiver”) with NNA, pursuant to which NNA waived and consented to certain provisions of the Credit Agreement, and the Convertible Note. The Waiver was granted by NNA until October 15, 2015. The company failed to comply with certain financial covenants as of September 30, 2015 and did not seek a further waiver from NNA. NNA did not declare a default and the loan was repaid from the proceeds of the financing with NMM on October 15, 2015. Since non-compliance with the financial covenants provided for therein existed for the quarter ending September 30, 2015, all debt has been classified as current as of September 30, 2015.

On October 14, 2015, the Company entered into an Agreement with NMM pursuant to which the Company sold to NMM 1,111,111 units, each unit consisting of one share of Series A Convertible Preferred Stock (the “Preferred Stock”) and one stock purchase warrant, for a total purchase price of $10,000,000, the proceeds of which were used by the Company primarily to repay certain outstanding indebtedness owed by the Company to NNA. (See Note 11 to the Notes to the Unaudited Condensed Consolidated Financial Statements).

Unsecured revolving line of credit

Included in “Notes and lines of credit payable” in the accompanying consolidated balance sheet is a $100,000 revolving line of credit with MUFG Union Bank, N.A., of which $94,764 was outstanding at September 30, 2015 and March 31, 2015. Borrowings under the line of credit bear interest at the prime rate (as defined) plus 4.50% (7.75% per annum at September 30, 2015 and at March 31, 2015), interest only is payable monthly, and the line of credit matures June 5, 2016. The line of credit is unsecured.

Other lines of credit

LALC has a line of credit of $230,000 with JPMorgan Chase Bank, N.A. as of September 30, 2015. The Company has not borrowed any amount under this line of credit as of September 30, 2015 and March 31, 2015.

BAHA has a line of credit of $150,000 with First Republic Bank as of September 30, 2015. The Company has not borrowed any amount under this line of credit as of September 30, 2015 and March 31, 2015. The line of credit is subject to renewal on April 27, 2016.

Interest expense associated with the notes and lines of credit payable consisted of the following:

	Three Months Ended				Six Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
Interest expense	$	149,070	$	143,845	$	298,779	$	287,998
Amortization of loan fees and discount		30,531		71,673		105,104		142,924
Out of period adjustment		(250,453)		-		(250,453)		-
	$	(70,852)	$	215,518	$	153,430	$	430,922

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Convertible Notes Payable (Tables)

6 Months Ended

Sep. 30, 2015

Convertible Notes [Abstract]

Schedule of Long-term Debt Instruments

Convertible notes payable consist of the following:

	September 30,		March 31,
	2015		2015
9% Senior Subordinated Convertible Notes due February 15, 2016, net of debt discount of $24,770 (September 30, 2015) and $62,182 (March 31, 2015)	$	1,075,230	$	1,037,818
8% Senior Subordinated Convertible Note Payable to NNA due March 28, 2019, net of debt discount of $913,904 (September 30, 2015) and $985,255 (March 31, 2015)		1,086,096		1,014,745
Conversion feature liability		388,150		442,358
	$	2,549,476	$	2,494,921

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Acquisitions (Tables)

6 Months Ended

Sep. 30, 2015

Business Acquisition [Line Items]

Schedule Of Business Acquisitions By Acquisition Consideration Transferred

During the six months ended September 30, 2014, the Company acquired SCHC and AKM for a total cash consideration of $1,947,431, net of cash acquired of $620,960, detailed as follows:

SCHC	$	2,428,391
AKM		140,000
Less: cash acquired		(620,960)
Total	$	1,947,431

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Commitments and Contingencies

6 Months Ended

Sep. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

10. Commitments and Contingencies

Regulatory Matters

Laws and regulations governing the Medicare and Medicaid programs are complex and subject to interpretation. Compliance with such laws and regulations can be subject to future government review and interpretation as well as significant regulatory action including fines, penalties, and exclusion from the Medicare and Medicaid programs. The Company believes that it is in compliance with all applicable laws and regulations.

Legal

On May 16, 2014, Lakeside Medical Group, Inc. and Regal Medical Group, Inc., two independent physician associations who compete with the Company in the greater Los Angeles area, filed an action against the Company and two affiliates of the Company, MMG and AMEH, in Los Angeles County Superior Court. The complaint alleged that the Company and its two affiliates made misrepresentations and engaged in other acts in order to improperly solicit physicians and patient-enrollees from Plaintiffs. The Complaint sought compensatory and punitive damages. On June 30, 2014, the Company and its affiliates filed a motion requesting the Court to stay the court proceeding and order the parties to arbitrate this dispute subject to existing arbitration agreements. On August 11, 2014, the Plaintiffs filed a request for dismissal without prejudice of the action. On August 12, 2014, the Plaintiffs served the Company and its affiliates with Demands for Arbitration before Judicial Arbitration Mediation Services in Los Angeles. The Company is currently examining the merits of the claims to be arbitrated, and it is too early to state whether the likelihood of an unfavorable outcome is probable or remote, or to estimate the potential loss if the outcome should be negative. The Company is aware that punitive damages previously sought in the court proceeding are not available in arbitration. The Company and its affiliates are preparing a defense to the allegations and the Company intends to vigorously defend the action.

On August 28, 2014, Lakeside Medical Group, Inc. and Regal Medical Group, Inc., filed a similar lawsuit against Warren Hosseinion M.D., the Company’s Chief Executive Officer. Dr. Hosseinion is defending the action and is currently being indemnified by the Company pursuant to the terms of an indemnification agreement and the Company’s Certificate of Incorporation, as amended. The Company also has an existing Directors and Officers insurance policy. On September 9, 2014, Dr. Hosseinion filed a motion requesting the Court to stay the court proceeding and, pursuant to existing arbitration agreements, order the parties to arbitrate the dispute as part of the pending arbitration proceedings before JAMS (as discussed above). On October 29, 2014, the Plaintiffs filed a request for dismissal without prejudice of the action. On November 13, 2014, Plaintiffs served Dr. Hosseinion with Demands for Arbitration before JAMS in Los Angeles, and on November 19, 2014, the parties agreed to consolidate the two proceedings against Dr. Hosseinion with the two existing proceedings against the Company and its affiliates. The Company continues to examine the merits of the claims to be arbitrated against Dr. Hosseinion, and it is too early to state whether the likelihood of an unfavorable outcome is probable or remote, or to estimate the potential loss if the outcome should be negative. The Company is aware that punitive damages previously sought in the court proceeding against Dr. Hosseinion are not available in arbitration.

The parties involved in the proceedings described above are currently in mediation.

In the ordinary course of the Company’s business, the Company becomes involved in pending and threatened legal actions and proceedings, most of which involve claims of medical malpractice related to medical services provided by the Company’s affiliated physicians. The Company believes, based upon the Company’s review of pending actions and proceedings, that the outcome of such legal actions and proceedings will not have a material adverse effect on the Company’s business, financial condition, results of operations, or cash flows. The outcome of such actions and proceedings, however, cannot be predicted with certainty and an unfavorable resolution of one or more of them, or any other claims that may be asserted against the Company from time to time, could have a material adverse effect on the Company’s business, financial condition, results of operations, or cash flows in a future period.

Liability Insurance

The Company believes that the Company’s insurance coverage is appropriate based upon the Company’s claims experience and the nature and risks of the Company’s business. In addition to the known incidents that have resulted in the assertion of claims, the Company cannot be certain that the Company’s insurance coverage will be adequate to cover liabilities arising out of claims asserted against the Company, the Company’s affiliated professional organizations or the Company’s affiliated hospitalists in the future where the outcomes of such claims are unfavorable. The Company believes that the ultimate resolution of all pending claims, including liabilities in excess of the Company’s insurance coverage, will not have a material adverse effect on the Company’s financial position, results of operations or cash flows; however, there can be no assurance that future claims will not have such a material adverse effect on the Company’s business.

Although the Company currently maintains liability insurance policies on a claims-made basis, which are intended to cover malpractice liability and certain other claims, the coverage must be renewed annually, and may not continue to be available to the Company in future years at acceptable costs, and on favorable terms. The Company believes that its malpractice coverage is adequate and standard for the industry.

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Income Taxes

6 Months Ended

Sep. 30, 2015

Income Tax Disclosure [Abstract]

Income Taxes

8. Income Taxes

Deferred income taxes are provided on a liability method whereby deferred tax assets and liabilities are recognized for temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. Significant management judgment is required in determining the Company’s provision for income taxes and the recoverability of the Company’s deferred tax assets. Such determination is based primarily on the Company’s historical taxable income, with some consideration given to the Company’s estimates of future taxable income by jurisdictions in which the Company operates and the period over which the Company’s deferred tax assets will be recoverable. Due to overall cumulative losses incurred in recent years, the Company maintained a full valuation allowance against its deferred tax assets as of September 30, 2015 and March 31, 2015. The Company is subject to U.S. federal income tax, as well as California state tax.

ASC No. 740 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under ASC No. 740, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the financial statements from such position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. ASC No. 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods and disclosure requirements. The Company and its subsidiaries are currently open to audit under the statute of limitations by the Internal Revenue Service for the years ended December 31, 2011 and later. The Company’s state income tax returns are open to audit under the statute of limitations for the years ended December 31, 2010 and later. The Company does not anticipate any material unrecognized tax benefits within the next twelve months.

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Stockholders' Equity

6 Months Ended

Sep. 30, 2015

Stockholders' Equity Note [Abstract]

Stockholders’ Equity

9. Stockholders’ Equity

Equity Incentive Plans

The Company’s amended 2010 Equity Incentive Plan (the “2010 Plan”) allowed the Board to grant up to 1,200,000 shares of the Company’s common stock, and provided for awards including incentive stock options, non-qualified options, restricted common stock, and stock appreciation rights. As of September 30, 2015, there were no shares available for grant under the 2010 Plan.

On April 29, 2013 the Company’s Board of Directors approved the Company’s 2013 Equity Incentive Plan (the “2013 Plan”), pursuant to which 500,000 shares of the Company’s common stock were reserved for issuance thereunder and provides for awards, including incentive stock options, non-qualified options, restricted common stock, and stock appreciation rights. The Company received approval of the 2013 Plan from the Company’s stockholders on May 19, 2013. As of September 30, 2015 there were approximately 90,000 shares available for future grants under the 2013 Plan.

Share Issuances

A summary of the Company’s restricted stock sold to employees, directors and consultants with a right of repurchase of unlapsed or unvested shares is as follows:

			Weighted
			Average		Weighted		Weighted-
			Remaining		Average		average
			Vesting		Per Share		Per Share
			Life		Intrinsic		Grant Date
	Shares		(In years)		Value		Fair Value
Unvested or unlapsed shares at March 31, 2015		12,222		0.3	$	0.50	$	4.10
Granted		-
Vested / lapsed		(12,222)		-
Forfeited		-		-		-		-
Unvested or unlapsed shares at September 30, 2015		-		-		-		-

Options

Stock option activity for the six months ended September 30, 2015 is summarized below:

			Weighted		Weighted		Weighted
			Average		Average		Average
			Per Share		Remaining		Per Share
			Exercise		Life		Intrinsic
	Shares		Price		(Years)		Value
Balance, March 31, 2015		776,500	$	4.69		7.4	$	1.50
Granted		-
Cancelled		-
Exercised		-
Expired		-
Forfeited		-
Balance, September 30, 2015		776,500	$	3.27		7.4		3.59
Vested and exercisable, September 30, 2015		692,556	$	2.55		7.2		4.02

ApolloMed ACO 2012 Equity Incentive Plan

On October 18, 2012, ApolloMed ACO’s Board of Directors adopted the ApolloMed Accountable Care Organization, Inc. 2012 Equity Incentive Plan (the “ACO Plan”) and reserved 9,000,000 shares of ApolloMed ACO’s common stock for issuance thereunder and provides for awards, including incentive stock options, non-qualified options, restricted common stock, and stock appreciation rights. The purpose of the ACO Plan is to encourage selected employees, directors, consultants and advisers to improve operations and increase the profitability of ApolloMed ACO and encourage selected employees, directors, consultants and advisers to accept or continue employment or association with ApolloMed ACO.

The following table summarizes the stock awards under the ACO Plan during the six months ended September 30, 2015:

			Weighted
			Average		Weighted
			Remaining		Average		Weighted
			Vesting		Per Share		Average
			Life		Intrinsic		Per Share
	Shares		(Years)		Value		Fair Value
Balance, March 31, 2015		3,752,004		0.1	$	0.70	$	0.07
Granted		-		-		-		-
Released		-		-		-		-
Balance, September 30, 2015		3,752,004		-	$	0.70	$	0.07
Vested and exercisable, end of period		3,712,675

Awards of restricted stock under the ACO Plan vest (i) one-third on the date of grant; (ii) one-third on the first anniversary of the date of grant, if the grantee has remained in service continuously until that date; and (iii) one-third on the second anniversary of the date of grant if the grantee has remained in service continuously until that date. 

As of September 30, 2015, total unrecognized compensation costs related to non-vested stock-based compensation arrangements granted under the Company’s 2010 Plan and 2013 Plan, and the ACO Plan’s and the weighted-average period of years expected to recognize those costs are as follows:

			Weighted
	Unrecognized		Average
	Stock		Remaining
	Compensation		Vesting Period
	Cost		(Years)
Common stock options	$	155,393		1.7
Restricted stock	$	-		-
ACO Plan restricted stock	$	76		0.01

Stock-based compensation expense related to common stock and common stock option awards is recognized over their respective vesting periods and was included in the accompanying condensed consolidated statement of operations as follows:

	Three Months Ended				Six Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
Stock-based compensation expense:
Cost of services	$	1,227	$	(17,822)	$	2,454	$	10,921
General and administrative		67,659		874,341		150,279		964,737
	$	68,886	$	856,519	$	152,733	$	975,658

Warrants

Warrants consisted of the following for the six months ended September 30, 2015:

	Weighted
	Average
	Per Share
	Intrinsic		Number of
	Value		Warrants
Outstanding at March 31, 2015	$	0.46		914,500
Granted		-		-
Exercised		-		-
Cancelled		-		-
Outstanding at September 30, 2015	$	0.32		914,500

								Weighted
				Weighted				Average
Exercise Price Per		Warrants		Average Remaining		Warrants		Exercise Price Per
Share		Outstanding		Contractual Life		Exercisable		Share
$	1.15		125,000		0.8		125,000	$	1.15
	1.15		25,000		0.8		25,000		1.15
	4.50		50,000		0.8		50,000		4.50
	5.00		10,000		2.1		10,000		5.00
	4.50		82,500		2.3		82,500		4.50
	4.00		22,000		2.3		22,000		4.00
	10.00		200,000		5.5		-		10.00
	20.00		200,000		5.5		-		20.00
	10.00		100,000		5.5		-		10.00
	10.00		100,000		2.8		100,000		10.00
			914,500		3.8		414,500		4.60

In connection with the 2014 NNA financing, NNA received warrants to purchase up to 300,000 shares of the Company’s common stock at an initial exercise price of $10.00 per share and up to 200,000 shares at an initial exercise price of $20.00 per share, subject to adjustment for stock splits, reverse stock splits and stock dividends, and are exercisable after March 28, 2017 and before March 28, 2021. The warrants also contain down-round protection under which the exercise price of the warrants is subject to adjustment in the event the Company issues future common shares at a price below $9.00 per share. The Company determined that the warrants should be classified as liabilities under ASC 815-40, which requires the Company to determine the fair value of the warrants at the transaction date and at each subsequent reporting date (see Notes 2, 6 and 11 to the Notes to the Condensed Consolidated Financial Statements).

On July 21, 2014, in connection with the SCHC acquisition, the Company issued warrants to purchase up to 100,000 shares of the Company’s common stock at an exercise price of $10.00 per share. The warrants are exercisable at any time prior to July 21, 2018.

Authorized stock

At September 30, 2015 the Company is authorized to issue up to 100,000,000 shares of common stock pursuant to its Certificate of Incorporation, as amended. The Company is required to reserve and keep available out of the authorized but unissued shares of common stock such number of shares sufficient to effect the conversion of all outstanding shares of the 9% Notes, the exercise of all outstanding warrants exercisable into shares of common stock, and shares granted and available for grant under the Company’s 2013 Plan. The number of shares of common stock reserved for these purposes is as follows at September 30, 2015: 

Common stock issued and outstanding	4,863,389
Conversion of 9% Notes	275,000
Conversion of 8% Notes	200,000
Warrants outstanding	914,500
Stock options outstanding	776,500
Remaining shares issuable under 2013 Plan	90,000
	7,119,389

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Subsequent Events

6 Months Ended

Sep. 30, 2015

Subsequent Events [Abstract]

Subsequent Events

11. Subsequent Events

Securities Purchase Agreement

On October 14, 2015, Company entered into the Agreement with NMM pursuant to which the Company sold to NMM, and NMM purchased from the Company, in a private offering of securities, 1,111,111 units, each unit consisting of one share of the Company’s Preferred Stock and a stock purchase warrant to purchase one share of the Company’s common stock at an exercise price of $9.00 per share. NMM paid the Company an aggregate $10,000,000 for the Units, the proceeds of which were used by the Company primarily to repay certain outstanding indebtedness owed by the Company to NNA and the balance for working capital.

The Preferred Stock has a liquidation preference in the amount of $9.00 per share plus any declared and unpaid dividends. The Preferred Stock can be voted for the number of shares of Common Stock into which the Preferred Stock could then be converted, which initially is one-for-one.

The Preferred Stock is convertible into Common Stock, at the option of NMM, at any time after issuance at an initial conversion rate of one-for-one, subject to adjustment in the event of stock dividends, stock splits and certain other similar transactions.

At any time prior to conversion and through the Redemption Expiration Date, the Preferred Stock may be redeemed at the option of NMM, on one occasion, in the event that the Company’s net revenues for the four quarters ending September 30, 2016, as reported in its periodic filings under the Securities Exchange Act of 1934, as amended, are less than $60,000,000. In such event, the Company shall have up to one year from the date of the notice of redemption by NMM to redeem the Preferred Stock, the Warrants and any shares of Common Stock issued in connection with the exercise of any Warrants theretofore (collectively the “Redeemed Securities”), for the aggregate price paid therefor by NMM, together with interest at a rate of 10% per annum from the date of the notice of redemption until the closing of the redemption. Any mandatory conversion described in the previous paragraph shall not take place until such time as it is determined that that conditions for the redemption of the Redeemed Securities have not been satisfied or, if such conditions exist, NMM has decided not to have such securities redeemed.

The Warrants may be exercised at any time after issuance and through October 14, 2020, for $9.00 per share, subject to adjustment in the event of stock dividends and stock splits. The Warrants are not separately transferable from the Preferred Stock. The Warrants are subject to redemption in the event the Preferred Stock is redeemed by NMM, as described above.

Pursuant to the Agreement, NMM has the right to designate to the Nominating/Corporate Governance Committee of the Board of Directors one person to be nominated as a director of the Company. Prior to the time of such appointment or election, one person designated by the Purchaser shall have observer status, without a vote, on the Board of Directors.

Without the written consent of NMM, between the Closing Date and the six month anniversary of the Closing Date, the Company shall not acquire, sell all or substantially all of its assets to, effect a change of control, or merge, combine or consolidate with, any other Person engaged in the business of being a MSO, ACO or IPA, or enter into any agreement with respect to any of the foregoing.

The securities were sold by the Company to NMM in reliance upon the exemption from registration contained in Section 4(a)(2) of the Securities Act of 1933, as amended, and/or Rule 506(b) of Regulation D promulgated by the Securities and Exchange Commission thereunder.

Series A Convertible Preferred Stock

On October 15, 2015, the Company filed a Certificate of Designation of Series A Convertible Preferred Stock (the “Certificate of Designation”) with the Secretary of State of the State of Delaware, in connection with the creation of the Preferred Stock sold to NMM on October 14, 2015.

NNA Term Loan, Revolving Credit Facility and Convertible Note

In connection with the transactions with NMM described above on October 15, 2015, the Company repaid, from the proceeds of the sale of the securities therein described, its outstanding term loan and revolving credit facility with NNA pursuant to a Credit Agreement dated March 28, 2014 between the Company and NNA in the aggregate amount of $7,304,506, consisting of principal of $7,282,500 plus $22,006 of accrued interest.

Additionally, NNA has agreed in principle to convert the Company’s Convertible Note dated March 28, 2014 in the principal amount of $2,000,000 into 275,000 shares of the Company’s Common Stock and exercise all of its related Common Stock Purchase Warrants dated March 28, 2014 into 325,000 shares of the Company’s Common Stock on a cashless basis. Assuming the foregoing transactions are consummated, the Company will receive no proceeds from NNA and it will have no further indebtedness owed to NNA. The Company currently anticipates that these transactions will be completed during the third quarter of fiscal 2016.

Amended Bylaws and Appointment of Certain Officers

On October 12, 2015, the Board of Directors of the Company amended Section 3.1 of the Company’s Restated Bylaws to provide that the authorized number of directors shall be fixed from time to time by the board of directors, provided that the authorized number of directors shall not be less than one.

On October 12, 2015, Warren Hosseinion, M.D. was appointed by the Board of Directors to serve as the Secretary of Apollo Medical Holdings, Inc. effective immediately, to fill the vacancy created by the previous resignation of Mitchell Creem from all positions he held with the Company.

Office Move

In connection with the Company’s amended lease agreement dated October 14, 2014, the Company relocated its headquarters to a larger suite in its current office building in October 2015. The Second Amendment relocates the leased premises from Suite No. 220 to Suite Nos. 1400, 1425 and 1450, which collectively include 16,484 rentable square feet (the “New Premises”). The New Premises will be improved with an allowance of up to $659,360, provided by the Landlord, for construction and installation of equipment for the New Premises. Before the improved New Premises are available, the Company shall also use Suite No. 240 on a temporary basis. The Second Amendment also extends the term of the lease to be for approximately six years after the Company begins operations in the New Premises and increases the Company’s initial security deposit. The Second Amendment sets the New Premises base rent at $37,913 per month for the first year and schedules annual increases in base rent each year until the final rental year, which is capped at $43,957 per month. However, the base rent will be abated by up to $228,049 subject to other terms of the lease.

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Intangible Assets - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Finite Lived Intangible Assets Accumulated Amortization Addition	$ 47,000	$ 125,000	$ 94,000	$ 130,000

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Warrants Outstanding (Detail)	6 Months Ended
	Sep. 30, 2015 $ / shares shares
Class of Warrant or Right [Line Items]
Weighted Average Per Share Intrinsic Value, Outstanding | $ / shares	$ 0.46
Weighted Average Per Share Intrinsic Value, Granted | $ / shares	0
Weighted Average Per Share Intrinsic Value, Exercised | $ / shares	0
Weighted Average Per Share Intrinsic Value, Cancelled | $ / shares	0
Weighted Average Per Share Intrinsic Value, Outstanding | $ / shares	$ 0.32
Number of warrants, Outstanding	914,500
Number of warrants, Granted	0
Number of warrants, Exercised	0
Number of warrants, Cancelled	0
Number of warrants, Outstanding	914,500

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Accounts Payable and Accrued Liabilities (Tables)

6 Months Ended

Sep. 30, 2015

Payables and Accruals [Abstract]

Accounts payable and accrued liabilities

Accounts payable and accrued liabilities consisted of the following:

	September 30,		March 31,
	2015		2015
Accounts payable	$	2,780,757	$	1,377,817
Physician share of MSSP		62,000		62,000
Accrued compensation		1,732,178		1,469,132
Income taxes payable		105,110		185,051
Accrued interest		105,131		55,529
Accrued professional fees		159,294		202,675
	$	4,944,470	$	3,352,204

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Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)	6 Months Ended	12 Months Ended
	Sep. 30, 2015	Mar. 31, 2015	Dec. 31, 2014
Summary Of Significant Accounting Policies [Line Items]
Health Care Organization, Patient Service Revenue	$ 20,000
Financial Liabilities Fair Value Disclosure	$ 1,703,996	$ 2,586,854
Percentage of Interest Rate for Certificates	0.15%
Deferred Costs, Total		$ 514,000
Warrant Liability
Summary Of Significant Accounting Policies [Line Items]
Expected term	5 years 6 months	6 years
Risk free interest rate	1.37%	1.53%
Expected volatility rate	58.10%	57.40%
Share Price	$ 5.10	$ 5.00
Percentage For Down round financing	50.00%	50.00%
Financial Liabilities Fair Value Disclosure	$ 1,315,846	$ 2,144,496
Conversion Feature Liability
Summary Of Significant Accounting Policies [Line Items]
Expected term	3 years 6 months	4 years
Risk free interest rate	1.00%	1.10%
Expected volatility rate	45.50%	47.60%
Share Price	$ 5.10	$ 5.00
Percentage For Down round financing	100.00%	100.00%
Debt Instrument, Interest Rate, Stated Percentage	8.00%	8.00%
Debt Instrument, Convertible, Conversion Price	$ 10.00	$ 10.00
Financial Liabilities Fair Value Disclosure	$ 388,150	$ 442,358
Maximum
Summary Of Significant Accounting Policies [Line Items]
Management agreement, initial term	20 years
Minimum
Summary Of Significant Accounting Policies [Line Items]
Management agreement, initial term	10 years
ApolloMed ACO
Summary Of Significant Accounting Policies [Line Items]
Benchmark Expenditure			$ 3,900,000
Percentage of Quality Score			90.40%
ApolloMed Palliative
Summary Of Significant Accounting Policies [Line Items]
Business Combination, Consideration Transferred, Total	$ 586,111

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Total Unrecognized Compensation Costs Related to Non-Vested Stock-Based Compensation Arrangements (Detail)	6 Months Ended
	Sep. 30, 2015 USD ($)
Common stock options
Employee Service Share -Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized [Line Items]
Unrecognized compensation cost	$ 155,393
Weighted Average Remaining Vesting Period	1 year 8 months 12 days
Restricted stock
Employee Service Share -Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized [Line Items]
Unrecognized compensation cost	$ 0
Weighted Average Remaining Vesting Period	0 years
ACO Plan restricted stock
Employee Service Share -Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized [Line Items]
Unrecognized compensation cost	$ 76
Weighted Average Remaining Vesting Period	4 days

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Interest Expense Associated with Notes Payable (Detail) - USD ($)	3 Months Ended			6 Months Ended
	Sep. 30, 2015	Jun. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Associated of Interest Expense [Line Items]
Interest expense	$ 68,818	$ 109,949	$ 329,258	$ 429,220	$ 606,125
Notes Payable
Associated of Interest Expense [Line Items]
Interest expense	149,070		143,845	298,779	287,998
Amortization of loan fees and discount	30,531		71,673	105,104	142,924
Out of period adjustment	(250,453)		0	(250,453)	0
Interest expense, debt	$ (70,852)		$ 215,518	$ 153,430	$ 430,922

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income	$ (2,524,331)	$ 28,384
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Depreciation and amortization expense	141,435	205,180
Deferred income tax	6,129	59,314
Stock-based compensation expense	152,733	975,658
Amortization of financing costs	46,745	62,283
Amortization of debt discount	(47,875)	177,963
Change in fair value of warrant and conversion feature liability	116,866	(122,135)
Changes in assets and liabilities:
Accounts receivable	(214,131)	(993,669)
Other receivables	(80,776)	(5,382,617)
Due from affiliates	16,345	42,378
Prepaid expenses and advances	(131,091)	(14,167)
Deferred financing costs	513,646	0
Other assets	6,570	(347)
Accounts payable and accrued liabilities	1,592,267	2,170,739
Medical liabilities	76,638	668,779
Net cash used in operating activities	(328,830)	(2,122,257)
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition, net of cash and cash equivalents acquired	0	(1,947,431)
Property and equipment acquired	(42,572)	(15,583)
Net cash used in investing activities	(42,572)	(1,963,014)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of convertible note payable	0	2,000,000
Principal payments on term note payable	(122,500)	(726,082)
Contribution by non-controlling interest	0	550,000
Distributions to non-controlling interest	(595,418)	(600,000)
Debt issuance costs	0	(20,000)
Net cash (used in) provided by financing activities	(717,918)	1,203,918
NET DECREASE IN CASH & CASH EQUIVALENTS	(1,089,320)	(2,881,353)
CASH & CASH EQUIVALENTS, BEGINNING OF PERIOD	5,014,242	6,831,478
CASH & CASH EQUIVALENTS, END OF PERIOD	3,924,922	3,950,125
SUPPLEMENTARY DISCLOSURES OF CASH FLOW INFORMATION:
Interest paid	380,748	356,196
Income taxes paid	32,197	18,588
Non-Cash Financing Activities:
Holdback liability	0	136,822
Convertible note warrant	0	487,620
Convertible note conversion feature	0	578,155
Acquisition related warrant consideration	$ 0	$ 132,000

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Accounts Payable and Accrued Liabilities

6 Months Ended

Sep. 30, 2015

Payables and Accruals [Abstract]

Accounts Payable and Accrued Liabilities

5. Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities consisted of the following:

	September 30,		March 31,
	2015		2015
Accounts payable	$	2,780,757	$	1,377,817
Physician share of MSSP		62,000		62,000
Accrued compensation		1,732,178		1,469,132
Income taxes payable		105,110		185,051
Accrued interest		105,131		55,529
Accrued professional fees		159,294		202,675
	$	4,944,470	$	3,352,204

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Percentage of Net Revenue and Total Accounts Receivable (Detail)		3 Months Ended			6 Months Ended			12 Months Ended
		Sep. 30, 2015	Sep. 30, 2014		Sep. 30, 2015	Sep. 30, 2014		Mar. 31, 2015
Sales Revenue, Net | Medicare/Medi-Cal
Accounts Receivable And Net Revenue [Line Items]
Concentration Risk, Percentage		32.70%		[1]	33.80%		[1]
Sales Revenue, Net | L.A Care
Accounts Receivable And Net Revenue [Line Items]
Concentration Risk, Percentage		16.00%		[2]	14.60%		[2]
Sales Revenue, Net | Healthnet
Accounts Receivable And Net Revenue [Line Items]
Concentration Risk, Percentage		11.30%		[2]	12.40%		[2]
Sales Revenue, Net | Hollywood Presbyterian
Accounts Receivable And Net Revenue [Line Items]
Concentration Risk, Percentage	[1]
Sales Revenue, Net | California Hospital Medical Center
Accounts Receivable And Net Revenue [Line Items]
Concentration Risk, Percentage	[1]
Accounts Receivable | Medicare/Medi-Cal
Accounts Receivable And Net Revenue [Line Items]
Concentration Risk, Percentage					30.90%			22.10%

[1] Represents less than 10%

[2] Not a payor during this time period

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Notes and Lines of Credit Payable - Additional Information (Detail) - USD ($)		1 Months Ended	2 Months Ended	6 Months Ended		12 Months Ended
	Oct. 14, 2015	Mar. 28, 2014	Mar. 28, 2014	Sep. 30, 2015	Sep. 30, 2014	Mar. 31, 2015	Jun. 30, 2015	Jul. 21, 2014	Dec. 20, 2013	Oct. 15, 2013
Senior Secured Note [Line Items]
Debt, maturity date				Mar. 28, 2019
Class of warrant or right, number of securities called by warrants or rights								100,000
Debt Instrument, Unamortized Discount		$ 990,838	$ 990,838	$ 217,316		$ 1,060,401
Amortization Of Debt Discount Premium				$ (47,875)	$ 177,963
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate				0.00%
Derivative Liability, Current		$ 6,685,402	6,685,402	$ 1,315,846		0	$ 1,477,308
Debt Issuance Cost			26,117
Increase (Decrease) in Derivative Liabilities			999,724
Increase (Decrease) in Other Accrued Liabilities			$ 35,004
Private Placement [Member]
Senior Secured Note [Line Items]
Stock Issued During Period, Shares, New Issues	1,111,111
Stock Issued During Period, Value, New Issues	$ 10,000,000
Los Angeles Lung Center [Member]
Senior Secured Note [Line Items]
Line of credit facility amount outstanding				230,000
Bay Area Hospitalist Associates [Member]
Senior Secured Note [Line Items]
Line of credit facility amount outstanding				150,000
2014 NNA Financing
Senior Secured Note [Line Items]
Amortization Of Debt Discount Premium				20,930
Related Party Costs				235,119
Deferred Finance Costs Net				176,218
Proceeds From Issuance Of Debt Instruments On Fair Value				$ 9,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate				2.31%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate				71.40%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price				$ 4.50
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate				50.00%
Stock Issued During Period Value For Financing				$ 899,739
Discount On Shares Issuance				1,100,261
Discount On Term Loan				1,254,363
Fair Value Of Warrant Liabilities				$ 2,354,624
Expected term				7 years
Amortization Of Debt Discount				$ 51,072
Amortization Of Debt Discount Premium Related To Equity				7,998
Term Loan Value Under Agreement				$ 5,745,637
NNA
Senior Secured Note [Line Items]
Term Loan accrued interest				8.00%
Investment Agreement
Senior Secured Note [Line Items]
Warrants To Purchase Common Stock				200,000
Class of Warrant or Right, Exercise Price of Warrants or Rights				$ 20.00
Pledge and Security Agreement
Senior Secured Note [Line Items]
Securities Owned and Pledged as Collateral, Description				Pledged interests as of the date of the Pledge and Security Agreement include 100% of AMM, PCCM, VMM common stock and 72.77% of ApolloMed ACO common stock.
Revolving Credit Facility
Senior Secured Note [Line Items]
Revolving line of credit carrying amount				$ 100,000						$ 2,000,000
Line of credit facility amount outstanding				$ 94,764
Line of credit facility, interest rate description				prime rate (as defined) plus 4.50% (7.75% per annum at September 30, 2015 and at March 31, 2015),
Line of credit facility, frequency of payment and payment terms				interest only is payable monthly, and the line of credit matures June 5, 2016.
Proceeds from Lines of Credit				$ 1,000,000		$ 1,000,000
Revolving Credit Facility | Maximum
Senior Secured Note [Line Items]
Line of credit facility, maximum borrowing capacity									$ 4,000,000
Revolving Credit Facility | Minimum
Senior Secured Note [Line Items]
Line of credit facility, maximum borrowing capacity									$ 2,000,000
Convertible Notes Payable
Senior Secured Note [Line Items]
Debt, interest rate		8.00%	8.00%
Debt, maturity date		Mar. 28, 2019
Debt Instrument, Fee Amount		$ 2,000,000	$ 2,000,000
Debt Instrument, Convertible, Terms of Conversion Feature		The Company may redeem amounts outstanding under the Convertible Note on 60 days prior notice to NNA.
Debt Instrument, Convertible, Conversion Price		$ 10.00	$ 10.00
NNA Warrants
Senior Secured Note [Line Items]
Debt Issuance Cost			$ 176,218
NNA Warrants | Investment Agreement
Senior Secured Note [Line Items]
Warrants To Purchase Common Stock				300,000
Class of Warrant or Right, Exercise Price of Warrants or Rights				$ 10.00
Senior secured note | SpaGus
Senior Secured Note [Line Items]
Senior notes				$ 500,000
Term Loan
Senior Secured Note [Line Items]
Line of credit facility amount outstanding		$ 7,000,000	7,000,000
Class of warrant or right, number of securities called by warrants or rights				300,000
Repayment of first year term loan				$ 87,500
Repayment of second year term loan				122,500
Repayment of third year term loan				122,500
Repayment of fourth year term loan				175,000
Repayment of fifth year term loan				210,000
Debt Instrument, Unamortized Discount				1,305,435
Debt Instrument, Fee Amount				$ 80,000
Revolving Loan [Member]
Senior Secured Note [Line Items]
Line of credit facility amount outstanding		$ 1,000,000	$ 1,000,000
Line of credit facility, interest rate description				three month LIBOR plus 6.0%
Term Loan And Revolving Loan [Member]
Senior Secured Note [Line Items]
Debt, maturity date				Mar. 28, 2019
Line of Credit Facility, Expiration Date				Mar. 28, 2019

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Intangible Assets (Tables)

6 Months Ended

Sep. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of intangible assets

Intangible assets, net consisted of the following:

			Accumulated
September 30, 2015	Gross Amounts		Amortization		Net
Indefinite-lived assets:
Medicare license	$	704,000	$	-	$	704,000
Amortized intangible assets:
Exclusivity		40,000		(20,940)		19,060
Non-compete		185,400		(70,472)		114,928
Payor relationships		107,000		(26,750)		80,250
Network relationships		220,000		(51,333)		168,667
Trade name		257,000		(60,742)		196,258
Totals	$	1,513,400	$	(230,237)	$	1,283,163

			Accumulated
March 31, 2015	Gross Amounts		Amortization		Net
Indefinite-lived assets:
Medicare license	$	704,000	$	-	$	704,000
Amortized intangible assets:
Exclusivity		40,000		(15,940)		24,060
Non-compete		185,400		(41,428)		143,972
Payor relationships		107,000		(16,050)		90,950
Network relationships		220,000		(29,333)		190,667
Trade name		257,000		(33,392)		223,608
Totals	$	1,513,400	$	(136,143)	$	1,377,257

Schedule of future amortization expense

Future amortization expense is estimated to be as follows for the period October 1, 2105 to March 31, 2016 and for each of the five following years ending March:

October 31, 2015 to March 31, 2016	$	93,083
2017		185,001
2018		146,538
2019		114,658
2020		39,883
Total	$	579,163