10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

AMENDMENT NO. 1

TO

FORM 10-Q

(Mark One)

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

For the quarterly period ended June 30, 2016

OR

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

For the Transition Period From to

Commission file number: 001-37792

NANTHEALTH, INC.

(Exact name of registrant as specified in its charter)

Delaware	27-3019889
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

9920 Jefferson Blvd Culver City, California	90230
(Address of principal executive offices)	(Zip Code)

(310) 883-1300

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Name of each exchange on which registered
Common Stock, $0.0001 par value	NASDAQ Global Select Market

Securities registered pursuant to Section 12(g) of the Act: None

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.    Yes  x    No  o

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 (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨	Accelerated filer	o
Non-accelerated filer	x  (Do not check if a smaller reporting company)	Smaller reporting company	¨

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

As of August 12, 2016, the registrant had 121,231,643 shares of common stock, par value $0.0001 per share, outstanding.

EXPLANATORY NOTE

NantHealth, Inc. (the “Company”) is filing this Amendment No. 1 (the “Amendment No. 1”) to its Quarterly Report on Form 10-Q for the quarter ended June 30, 2016, which was originally filed on August 15, 2016 (the “Original Filing”) for the sole purpose of furnishing Exhibit 101 to the Form 10-Q in accordance with Rule 405 of Regulation S-T.  Exhibit 101 to Amendment No. 1 provides the Condensed Consolidated and Combined financial statements and related notes from the Form 10-Q formatted in XBRL (eXtensible Business Reporting Language).

Other than the addition of Exhibit 101, no other changes have been made to the Original Filing.

This Amendment No. 1 does not reflect events that may have occurred subsequent to the filing date of the Original Filing, and does not modify or update in any way disclosures made in the Form 10-Q for the quarter ended June 30, 2016.

Item 6. Exhibits

The exhibits listed in the accompanying Exhibit Index are filed as part of, or incorporated by reference into, this Quarterly Report on Form 10-Q.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Quarterly Report on Form 10-Q to be signed on its behalf by the undersigned thereunto duly authorized.

NantHealth, Inc.

(Registrant)

Date: September 14, 2016	/s/ Paul Holt
	Paul Holt
	Chief Financial Officer
	(Principal Financial and Accounting Officer)

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Exhibit Index

		Incorporated by Reference
Number	Exhibit Title	Form	File No.	Filing	Filed
				Date	Herewith
3.1	Amended and Restated Certificate of Incorporation.	10-Q	001-37792	August 15, 2016
3.2	Amended and Restated Bylaws.	10-Q	001-37792	August 15, 2016
10.1+	Amended and Restated NantOmics Exclusive Reseller Agreement, dated as of May 9, 2016, by and between the Registrant and NantOmics, LLC.	S-1/A	333-211196	June 1, 2016
10.2+	NantHealth License Agreement, dated June 19, 2015, by and between the Registrant and NantOmics, LLC, as amended.	S-1/A	333-211196	June 1, 2016
10.3#	2016 Equity Incentive Plan and form of agreement thereunder.	S-1	333-211196	May 6, 2016
10.4#	2016 Executive Incentive Compensation Plan.	S-1	333-211196	May 6, 2016
10.5	Amended and Restated Promissory Note, between Registrant and NantCapital LLC, dated May 9, 2016.	S-1/A	333-211196	May 11, 2016
10.6	Amended and Restated Promissory Note, between Registrant and NantOmics, LLC, dated May 23, 2016.	S-1/A	333-211196	May 24, 2016
10.7	Side Letter Agreement, between Registrant and NantWorks, LLC, dated May 22, 2016.	S-1/A	333-211196	May 23, 2016
31.1	Certification of Principal Executive Officer required by Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.				X
31.2	Certification of Principal Financial Officer required by Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.				X
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*	10-Q	001-37792	August 15, 2016
32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*	10-Q	001-37792	August 15, 2016
101.INS**	XBRL Instance Document.				X
101.SCH**	XBRL Taxonomy Extension Schema Document.				X
101.CAL**	XBRL Taxonomy Extension Calculation Linkbase Document.				X
101.DEF**	XBRL Taxonomy Extension Definition Linkbase Document.				X
101.LAB**	XBRL Taxonomy Extension Label Linkbase Document.				X
101.PRE**	XBRL Taxonomy Extension Presentation Linkbase Document.				X

#    Represents a management contract or compensatory plan.

+    Confidential treatment requested with respect to certain portions of this exhibit. Omitted portions filed separately with the Securities and Exchange Commission.

*    As contemplated by SEC Release No. 33-8212, these exhibits are furnished with this Quarterly Report on Form 10-Q and are not deemed filed with the Securities and Exchange Commission and are not incorporated by reference in any filing of NantHealth, Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date hereof and irrespective of any general incorporation language contained in such filings.

**    XBRL (eXtensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of section 18 of the Securities Exchange Act of 1934, as amended, and is otherwise not subject to liability under these sections.

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EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Patrick Soon-Shiong, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of NantHealth, 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 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. The registrant’s 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)) 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) 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; and

(c) 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 (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I 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 functions):

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

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

Date: September 14, 2016	By:	/s/ Patrick Soon-Shiong
		Dr. Patrick Soon-Shiong
		Chief Executive Officer and Chairman
		(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Paul Holt, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of NantHealth, 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 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. The registrant’s 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)) 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) 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; and

(c) 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 (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I 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 functions):

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

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

Date: September 14, 2016	By:	/s/ Paul Holt
		Paul Holt
		Chief Financial Officer
		(Principal Financial and Accounting Officer)

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 12, 2016
Document And Entity Information [Abstract]
Entity Registrant Name	NantHealth, Inc.
Entity Central Index Key	0001566469
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		121,231,643

XML

Condensed Consolidated and Combined Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets
Cash and cash equivalents	$ 95,242	$ 5,989
Marketable securities	71	1,243
Accounts receivable, net	17,165	11,472
Inventories, net	2,342	2,146
Deferred implementation costs	3,922	2,224
Related party receivables, net	856	1,245
Prepaid expenses and other current assets	8,708	8,707
Total current assets	128,306	33,026
Property, plant, and equipment, net	26,413	13,899
Deferred implementation costs, net of current	6,347	1,930
Goodwill	133,426	56,718
Intangible assets, net	130,165	54,971
Investments in related parties	242,901	248,191
Related party receivables, net of current	2,028	1,300
Other assets	2,276	1,918
Total assets	671,862	411,953
Current liabilities
Accounts payable	6,218	6,447
Accrued expenses	20,770	14,423
Deferred revenue	19,292	10,656
Related party payables, net	8,671	10,166
Other current liabilities	596	1,544
Total current liabilities	55,547	43,236
Deferred revenue, net of current	14,725	17,312
Related party payables, net of current	2,755	0
Related party promissory note	112,666	0
Deferred income taxes, net	622	0
Other liabilities	428	358
Total liabilities	186,743	60,906
Redeemable Series F units: 53,580,996 units issued and outstanding at December 31, 2015	0	166,042
Stockholders' / members' equity
Members' equity, 541,228,171 units issued and outstanding at December 31, 2015 (Note 16)		476,263
Common stock, $0.0001 par value per share, 750,000,000 shares authorized; 120,165,026 shares issued and outstanding at June 30, 2016	12
Additional paid-in capital	863,249	0
Accumulated deficit	(378,448)	(291,171)
Accumulated other comprehensive income (loss)	306	(87)
Total stockholders' / members' equity	485,119	185,005
Total liabilities and stockholders' / members' equity	$ 671,862	$ 411,953

XML

Condensed Consolidated and Combined Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Redeemable Series F units issued (units)		53,580,996
Redeemable Series F units outstanding (units)		53,580,996
Members' equity units issued (units)		541,228,171
Members' equity units outstanding (units)		541,228,171
Common stock, par value (usd per share)	$ 0.0001
Common stock authorized (shares)	750,000,000
Common stock issued (shares)	120,165,026
Common stock outstanding (shares)	120,165,026

XML

Condensed Consolidated and Combined Statements of Operations - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenue:
Software and hardware		$ 4,149	$ 3,942	$ 4,823	$ 7,703
Software–as-a-service		15,181	3,412	28,882	7,218
Total software-related revenue		19,330	7,354	33,705	14,921
Maintenance		4,512	2,545	7,650	5,040
Sequencing and molecular analysis		45	0	45	0
Other services		7,603	1,853	9,541	3,533
Total net revenue		31,490	11,752	50,941	23,494
Cost of Revenue:
Software and hardware		435	91	674	(371)
Software-as-a-service		9,314	1,830	13,737	3,790
Total software-related cost of revenue		9,749	1,921	14,411	3,419
Maintenance		743	102	1,273	212
Sequencing and molecular analysis		359	0	359	0
Other services		7,492	2,030	11,057	3,677
Amortization of developed technologies		3,897	2,246	8,178	4,557
Total cost of revenue		22,240	6,299	35,278	11,865
Gross profit		9,250	5,453	15,663	11,629
Operating Expenses:
Selling, general and administrative		47,248	17,847	74,621	34,239
Research and development		24,322	4,960	35,016	9,650
Amortization of software license and acquisition-related assets		1,813	(11)	3,628	22
Total operating expenses		73,383	22,796	113,265	43,911
Loss from operations		(64,133)	(17,343)	(97,602)	(32,282)
Interest expense, net		(1,758)	(303)	(3,256)	(628)
Other income (expense), net		(77)	555	261	1,855
Loss from equity method investments		(2,375)	(145)	(5,289)	(145)
Loss before income taxes		(68,343)	(17,236)	(105,886)	(31,200)
Provision for (benefit from) income taxes		(14,211)	0	(18,609)	1
Net loss		$ (54,132)	$ (17,236)	$ (87,277)	$ (31,201)
Net loss per share:
Basic and diluted (usd per share)	[1]	$ (0.52)	$ (0.21)	$ (0.86)	$ (0.38)
Weighted average shares outstanding:
Basic and diluted (shares)	[1]	104,072,198	82,406,012	101,846,445	82,014,695

[1] The net loss per share and weighted-average shares outstanding have been computed to give effect to the LLC Conversion (See Note 16) that occurred June 1, 2016 prior to the Company’s IPO. In conjunction with the LLC Conversion, (a) all of the Company’s outstanding units automatically converted into shares of common stock, based on the relative rights of the Company's pre-IPO equityholders as set forth in the Company's limited liability company agreement and (b) the Company adopted and filed a certificate of incorporation with the Secretary of State of the state of Delaware and adopted bylaws. The Company adopted and filed an amendment to its certificate of incorporation with the Secretary of State of the state of Delaware to effect a 1-for-5.5 reverse stock split of its common stock on June 1, 2016. See Note 18 for the calculation of net loss per share for common stock and redeemable common stock for the three months and six months ended June 30, 2016.

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Condensed Consolidated and Combined Statements of Operations - Footnote	Jun. 01, 2016
Income Statement [Abstract]
Reverse stock split, conversion ratio	0.1818

XML

Condensed Consolidated and Combined Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Statement of Comprehensive Income [Abstract]
Net loss	$ (54,132)	$ (17,236)	$ (87,277)	$ (31,201)
Other comprehensive income (loss), net of reclassification adjustments and taxes -
Foreign currency translation gains (losses)	90	(73)	393	(2)
Comprehensive loss	$ (54,042)	$ (17,309)	$ (86,884)	$ (31,203)

XML

Condensed Consolidated and Combined Stockholders' / Members' Equity - 6 months ended Jun. 30, 2016 - USD ($) $ in Thousands	Total	Members' Equity	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (loss)
Balance at December 31, 2015, units at Dec. 31, 2015		541,228,171
Balance at December 31, 2015 at Dec. 31, 2015		$ 476,263
Balance at December 31, 2015, shares at Dec. 31, 2015			0
Balance at December 31, 2015 at Dec. 31, 2015	$ 185,005				$ (291,171)	$ (87)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of membership interests, units		15,513,726
Issuance of membership interests	52,500	$ 52,500
Deemed capital contribution from chairman and CEO	1,620
Series F put right accretion (pre LLC conversion)	(4,958)
Conversion of members' interests, units		(556,741,897)
Conversion of members' interests		$ (525,388)
Conversion of members' interests, shares			99,651,444
Conversion of members' interests			$ 10	$ 525,378
Issuance of common stock upon conversion of related party promissory note, shares			2,899,297
Issuance of common stock upon conversion of related party promissory note	40,590			40,590
Issuance of common stock in initial public offering, net of $13,370 in offering costs, shares			6,900,000
Issuance of common stock in initial public offering, net of $13,370 in offering costs	83,230		$ 1	83,229
Redeemable common stock put right expiration, shares			10,714,285
Redeemable common stock put right expiration	171,000		$ 1	170,999
Other comprehensive income	393					393
Net loss	(87,277)				(87,277)
Balance at June 30, 2016, units at Jun. 30, 2016		0
Balance at June 30, 2016 at Jun. 30, 2016		$ 0
Balance at June 30, 2016, shares at Jun. 30, 2016			120,165,026
Balance at June 30, 2016 at Jun. 30, 2016	$ 485,119		$ 12	$ 863,249	$ (378,448)	$ 306

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Condensed Consolidated and Combined Stockholders' / Members' Equity Parenthetical $ in Thousands	6 Months Ended
	Jun. 30, 2016 USD ($)
Statement of Stockholders' Equity [Abstract]
Offering costs for initial public offering	$ 13,370

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Condensed Consolidated and Combined Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities:
Net loss	$ (87,277)	$ (31,201)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	15,475	6,242
Unrealized changes in fair value of marketable securities	(49)	(3,194)
Realized changes in fair value of marketable securities	49	3,242
Stock-based compensation	43,788	1,031
Deferred income taxes, net	(19,043)	0
Provision for bad debt expense	552	20
Loss on equity method investments	5,289	145
Changes in operating assets and liabilities, net of business combinations:
Accounts receivable, net	3,752	(523)
Inventories, net	(196)	648
Related party receivables, net	(339)	356
Prepaid expenses and other current assets	2,036	(244)
Deferred implementation costs	(6,115)	0
Accounts payable	(4,814)	(1,085)
Accrued expenses	1,677	1,157
Deferred revenue	3,440	(4,255)
Related party payables	1,851	(2,891)
Other assets and liabilities	(876)	(13)
Net cash used in operating activities	(40,800)	(30,565)
Cash flows from investing activities:
Purchase of property and equipment	(8,231)	(5,147)
Investments in unconsolidated related parties	0	(150,816)
Purchases of marketable securities	(31)	0
Proceeds from sales of marketable securities	1,204	93,581
Purchase of cost method investment	0	(1,750)
Acquisitions of businesses, net of cash acquired	(79,423)	(50,548)
Deferred consideration for acquisition	1,949	0
Net cash used in investing activities	(84,532)	(114,680)
Cash flows from financing activities:
Proceeds from issuance of membership interests	0	200,000
Deemed capital contribution from Chairman and CEO	1,620	490
Payment of short-term notes payable	(23,324)	0
Proceeds from (payment of) related party promissory notes	152,666	(34,502)
Proceeds from initial public offering, net of offering costs	83,230	0
Net cash provided by financing activities	214,192	165,988
Effect of exchange rate changes on cash and cash equivalents	393	(2)
Net increase in cash and cash equivalents	89,253	20,740
Cash and cash equivalents, beginning of period	5,989	3,699
Cash and cash equivalents, end of period	95,242	24,439
Supplemental disclosure of cash flow information:
Interest paid	(178)	(2,215)
Interest received	392	296
Non-cash transactions:
Transfer of marketable securities as investment in unconsolidated related party	0	99,184
NaviNet escrow receivable	1,678	0
Accretion to redemption value of Series F / redeemable common stock	4,958	0
Conversion of related party promissory note and interest payable to common stock	40,590	0
Reclassification of redeemable common stock to common stock (former Series F units)	$ 171,000	$ 0

XML

Description of Business and Basis of Presentation

6 Months Ended

Jun. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Description of Business and Basis of Presentation

Description of Business and Basis of Presentation

Nature of Business

Nant Health, LLC was formed on July 7, 2010, as a Delaware limited liability company. On June 1, 2016, Nant Health, LLC converted into a Delaware corporation (the “LLC Conversion”)and changed its name to NantHealth, Inc. (“NantHealth”). NantHealth, together with its subsidiaries (the “Company”), is a healthcare cloud-based IT company converging science and technology through a single integrated clinical platform, to provide actionable health information at the point of care. NantHealth is a majority-owned subsidiary of NantWorks, LLC (“NantWorks”), which is a subsidiary of California Capital Equity, LLC (“Cal Cap”). The three companies were founded and are led by Dr. Patrick Soon-Shiong.

As of June 30, 2016, the Company conducted the majority of its operations in the United States, Canada, the United Kingdom, Singapore and India.

Initial Public Offering and LLC Conversion

On June 1, 2016, immediately prior to the pricing of its initial public offering (“IPO”) and in conjunction with the LLC Conversion, all outstanding units of Nant Health, LLC were automatically converted into shares of the Company’s common stock. Immediately following the LLC Conversion, the Company effected a 1-for-5.5 reverse stock split of its common stock. All share and per share amounts in the Condensed Consolidated and Combined financial statements and notes thereto have been retroactively adjusted, where necessary, to give effect to this reverse stock split.

On June 7, 2016, the Company completed its IPO, whereby it sold 6,500,000 shares of common stock at a public offering price of $14.00 per share. Additionally, on June 9, 2016, the underwriters partially exercised their over allotment option to purchase an additional 400,000 shares of common stock at $14.00 per share.

The Company received a total of $83,230 in proceeds from its IPO, after deducting underwriting discounts and commissions and offering costs of $13,370. The offering was registered under the Securities Act of 1933, as amended, on a registration statement on Form S-1 (Registration No. 333-211196), as amended (the “Registration Statement”).

Basis of Presentation

The accompanying unaudited Condensed Consolidated and Combined financial statements include the accounts of NantHealth and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. These interim Condensed Consolidated and Combined financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). These financial statements have been prepared on the same basis as the audited consolidated financial statements for the fiscal year ended December 31, 2015 and, in the opinion of management, include all adjustments, which are normal and recurring in nature, necessary for a fair presentation of the Company's financial position and results of operation. Certain reclassifications have been made to prior period amounts to conform to the current year presentation. Operating results for interim periods are not necessarily indicative of the results that may be expected for a full fiscal year. The accompanying Condensed Consolidated and Combined balance sheet as of December 31, 2015 has been derived from the audited financial statements at that date but does not include all of the disclosures required by GAAP.

Principles of Consolidation

The accompanying Condensed Consolidated and Combined financial statements include the financial statements of all wholly owned subsidiaries and other entities in which the Company has a controlling financial interest. For consolidated subsidiaries that are less than wholly owned, the third-party holdings of equity interests are referred to as non-controlling interests. All material intercompany balances and transactions with the Company’s subsidiaries have been eliminated.

Note 1. Description of Business and Basis of Presentation (Continued)

Immaterial Revisions

Subsequent to the Company’s filing of its draft registration statement on November 12, 2015, the Company determined that an immaterial revision was required to correct its previously issued Condensed Consolidated and Combined financial statements for the six months ended June 30, 2015. The revision related to an arrangement with a university pursuant to which the Company previously recorded $490 of revenue for the six months ended June 30, 2015. The Company subsequently concluded that amounts earned from this arrangement should instead be treated as deemed capital contributions from its Chairman and CEO (See Note 19). The immaterial revision to the financial statements for the six months ended June 30, 2015 was a reduction to sequencing and molecular analysis revenue, and an increase to net loss and comprehensive loss of $490 with a corresponding increase to members’ equity. The Company concluded that this revision was not material to the financial statements for the six months ended June 30, 2015 and adjusted its sequencing and molecular analysis revenue in its financial statements for the year ended December 31, 2015.

Separately, the Company received a refund from a vendor during the three months ended March 31, 2015 and previously reported the refund as other income in its financial statements for the six months ended June 30, 2015. The Company subsequently reclassified this $685 refund in its financial statements for the year ended December 31, 2015 to reduce software and hardware cost of revenue with a corresponding reduction in other income. The Company has revised its financial statements for the six months ended June 30, 2015 to reflect this immaterial reclassification. There was no change to net loss as a result of this immaterial reclassification.

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Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

With the exception of the incremental stock based compensation and net loss per share policies described below, there have been no significant changes to the accounting policies as disclosed in the Company's Registration Statement. The remaining accounting policies below are included to supplement the disclosure in the Company’s Registration Statement.

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Condensed Consolidated and Combined financial statements and accompanying notes. Actual results may differ from those estimates.

Variable Interest Entities

The Company evaluates its ownership interests, contractual rights and other interests in entities to determine if the entities are variable interest entities (“VIEs”), if it has a variable interest in those entities and the nature and extent of those interests. These evaluations are highly complex and involve judgment, the use of estimates and assumptions based on available historical information. In order for the Company to be the primary beneficiary of a VIE, it must have both (1) the power to direct the activities of a VIE that most significantly affect the VIE’s economic performance and (2) the obligation to absorb losses or the right to receive benefits that, in either case, could potentially be significant to the VIE. The Company consolidates entities of which it is the primary beneficiary.

The Company determines whether it is the primary beneficiary of a VIE upon its initial involvement with the VIE and reassesses whether it is the primary beneficiary on an ongoing basis. This determination is based upon an analysis of the design of the VIE, including the VIE’s structure and activities, the power to make significant economic decisions held by the Company and by other parties, and the variable interests owned by the Company and other parties.

Fair Value of Financial Instruments

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are classified and disclosed in one of the following three categories:

Note 2. Summary of Significant Accounting Policies (Continued)

• Level 1—Quoted prices for identical assets or liabilities in active markets;

• Level 2—Quoted prices for similar assets or liabilities in active markets or quoted prices for identical or similar assets or liabilities in markets that are not active or are directly or indirectly observable; and

• Level 3—Unobservable inputs that reflect estimates and assumptions.

The carrying amounts reported in the balance sheet for cash and cash equivalents, accounts receivable, accounts payable, notes payable, deferred revenue and other current monetary assets and liabilities approximate fair value because of the immediate or short-term maturity of these financial instruments.

In accordance with this guidance, the Company measures its cash equivalents and marketable securities at fair value. The Company’s cash equivalents and marketable securities are classified within Level 1. Cash equivalents and marketable securities are valued primarily using quoted market prices utilizing market observable inputs.

Revenue Recognition

Revenue represents the consideration received or receivable from clients for solutions and services provided by the Company. The Company’s revenue is generated from the following sources:

• Software and hardware— Software and hardware revenue is generated from the sale of the Company’s software, on either a perpetual or term license basis, and the sale of hardware. The software is installed on the client’s site or the client’s designated vendor’s site and is not hosted by the Company or by a vendor contracted by the Company. The Company also sells third-party software and hardware to its clients. Solutions sold are grouped together under the NantOS Interoperability platform (formerly known as cOS) and FusionFX, NantOS, DeviceConX and HBox.

• Software-as-a-service (“SaaS”)— SaaS revenue is generated from clients’ access to and usage of the Company’s hosted software solutions on a subscription basis for a specified contract term, which is usually monthly. In SaaS arrangements, the client cannot take possession of the software during the term of the contract and generally has the right to access and use the software and receive any software upgrades published during the subscription period. Solutions sold under a SaaS model include the NantOS Interoperability cancer decision support solution (formerly known as eviti) NantOS Interoperability and Navinet.

• Maintenance— Maintenance revenue includes ongoing post contract client support (“PCS”) or maintenance during the paid PCS term. Additionally, PCS includes ongoing development of software updates and upgrades provided to the client on a when and if available basis.

• Sequencing and molecular analysis— Sequencing and molecular analysis revenue is generated by the process of performing sequencing and analysis of whole genome DNA, RNA and proteomic results. Revenue is recognized when services have been performed.

• Other services— Other services includes revenue from professional services provided that are generally complementary to the software and may or may not be required for the software to function as desired by the client. The services are generally provided in the form of training and implementation services during the software license period and do not include PCS. Other services revenue also includes the sale of nursing and therapy services provided to patients in a home care setting and any other services not included in the preceding revenue sources.

Revenue is recognized when persuasive evidence of an arrangement exists, services or products have been provided to the client, fees are fixed or determinable, and collectability is reasonably assured. While most of the Company’s arrangements include short-term payment terms, the Company on occasion provides payment terms to clients in excess of one year from the date of contract signing. The Company does not recognize revenue for arrangements containing these extended payment terms until such payments become due. Certain of the Company’s customer arrangements allow for termination for convenience with advanced notice. Such termination rights do not allow for refunds other than prepaid PCS or other services. These provisions do not affect when the Company commences revenue recognition. The Company also has certain arrangements which allow for termination and refunds of fees in the event that software acceptance by the customer has not occurred. In these instances, the Company will defer all revenue until software acceptance has occurred.

Note 2. Summary of Significant Accounting Policies (Continued)

The Company engages in various multiple-element arrangements, which may generate revenue across any of the sources noted above. For multiple-element software arrangements that involve the sale of the Company’s proprietary software, PCS and other software-related services, vendor-specific objective evidence (“VSOE”) of fair value is required to allocate and recognize revenue for each element. VSOE of fair value is determined based on the price charged in which each deliverable is sold separately. The Company has established VSOE for PCS on certain of its software solutions using the Stated Renewal Method. In this instance, the Company has determined that its stated renewals are substantive and appropriate for use in the Stated Renewal Method. The Company has not yet established VSOE of fair value for any element other than PCS for a portion of its arrangements. In situations where VSOE of fair value exists for PCS but not a delivered element (typically the software license and services elements), the residual method is used to allocate revenue to the undelivered element equal to its VSOE value with the remainder allocated to the delivered elements. In situations in which VSOE of fair value does not exist for all of the undelivered software-related elements, revenue is deferred until only one undelivered element remains (typically the PCS element) and then recognized following the pattern of delivery of the final undelivered element. The Company’s multiple element arrangements typically provide for renewal of PCS terms upon expiration of the original term. The amounts of these PCS renewals are recognized as revenue ratably over the specified PCS renewal period.

For non-software arrangements that include multiple-elements, primarily consisting of the Company’s SaaS agreements, revenue recognition involves the identification of separate units of accounting after consideration of combining and/or segmenting contracts and allocation of the arrangement consideration to the units of accounting on the basis of their relative selling price. The selling price used for each deliverable is based on VSOE of fair value, if available, third party evidence (“TPE”) of fair value if VSOE is not available, or the Company’s best estimate of selling price (“BESP”) if neither VSOE nor TPE is available. In determining the units of accounting for these arrangements, the Company evaluates whether each deliverable has stand-alone value as defined in the FASB’s guidance. The Company’s SaaS arrangements are treated as a single unit of accounting as the professional services do not have standalone value. As a result, the Company recognizes initial system implementation and deployment fees ratably over a period of time from when the system implementation or deployment services are completed and accepted by the customer over the longer of the life of the agreement or the estimated customer life.

If an arrangement to deliver software requires significant production, modification or customization of the licensed software, the Company accounts for the arrangement as a construction-type contract. The Company currently recognizes revenue for these arrangements using the completed-contract method as it does not currently have sufficient information to reliably estimate the percentage of completion for these projects. The Company considers these arrangements to be substantially complete upon the clients’ acceptance of the software and related professional services and consistently applies this policy to all contract accounting arrangements.

Transaction processing fees are recognized on a monthly basis based on the number of transactions processed and the fee per transaction.

Revenue derived from reseller arrangements is recognized when the resellers, in turn, sell the software solution to their clients and installation of the software solution has occurred, provided all other revenue recognition criteria are met. This is commonly referred to as the sell-through method and the Company defers recognition until there is a sell-through by the reseller to an actual end user clients and acceptance by the end user has occurred.

Investments in Related Parties

Investments in and advances to related parties in which the Company has a substantial ownership interest of approximately 20 percent to 50 percent, or for which the Company exercises significant influence but not control over policy decisions, are accounted for by the equity method. Investments in limited liability companies that are similar to partnerships are also accounted for under the equity method if more than minor influence over the operation of the investee exists (generally through more than 3-5% ownership). As part of that accounting, the Company recognizes gains and losses that arise from the issuance of stock by a related party that results in changes in the Company’s proportionate share of the dollar amount of the related party’s equity.

Investments in related parties are assessed for possible impairment when events indicate that the fair value of the investment may be below the Company’s carrying value. When such a condition is deemed to be other than temporary, the carrying value of the investment is written down to its fair value, and the amount of the write-down is included in net loss. In making the determination as to whether a decline is other than temporary, the Company considers such factors as the duration and extent of the decline, the investee’s financial performance, and the Company’s ability and intention to retain its investment for a period that will be sufficient to allow for any anticipated recovery in the investment’s market value. The new cost basis of investments in these equity investees is not changed for subsequent recoveries in fair value.

Note 2. Summary of Significant Accounting Policies (Continued)

Differences between the Company’s carrying value of an equity investment and its underlying equity in the net assets of the related party are assigned to the extent practicable to specific assets and liabilities based on the Company’s analysis of the various factors giving rise to the difference. When appropriate, the Company’s share of the related party’s reported earnings is adjusted quarterly to reflect the difference between these allocated values and the related party’s historical book values. 

Business Combinations

Business combinations are accounted for using the acquisition method of accounting. Under the acquisition method, assets acquired and liabilities assumed are recorded at their respective fair values as of the acquisition date. Any excess of the purchase price over the estimated fair values of the net assets acquired is recorded as goodwill. Management routinely monitors the factors impacting the acquired assets and liabilities. Transaction related costs are expensed as incurred. The operating results of the acquired business are reflected in the Company’s Condensed Consolidated and Combined financial statements as of the acquisition date. 

Deferred Revenue

The Company records deferred revenue when it receives cash from clients prior to meeting the applicable revenue recognition criteria. The Company uses judgment in determining the period over which the deliverables are recognized as revenue. As of June 30, 2016 and December 31, 2015, current and non-current deferred revenue are comprised of deferrals for fees related to software licenses, SaaS arrangements, PCS services, non-PCS services and other revenue. Non-current deferred revenue as of June 30, 2016 is expected to be recognized on or after July 1, 2017.

Deferred Implementation Costs

The Company provides SaaS and information technology management services under long-term arrangements which require the Company to perform system implementation activities. In some cases, the arrangements either contain provisions requiring customer acceptance of the setup activities prior to commencement of the ongoing services arrangement or the system implementation services do not have separate value from the service revenue. Up-front fees billed during the setup phase for these arrangements are deferred and setup costs that are direct and incremental to the contract are capitalized. The costs deferred consist of employee compensation and benefits for those employees directly involved with performing system implementation or deployment services, as well as other direct and incremental costs.

The Company defers costs estimated to be realizable based on contracted implementation revenue and estimated margin from the service contract. The Company periodically reviews the deferred implementation contracts for recoverability. The costs are amortized to cost of revenue ratably over a period of time from when the system implementation or deployment services are completed and accepted to the end of the contract term or the expected customer life, whichever is longer.

Research and Development Expenses

Research and development (“R&D”) costs incurred to establish the technological feasibility of software to be sold are expensed as incurred. These expenses include the costs of the Company’s proprietary R&D efforts, as well as costs incurred in connection with certain licensing arrangements.

Development costs, consisting primarily of employee salaries and benefits, incurred in the research and development of new software products and enhancements to existing software products for external use are expensed as incurred until technological feasibility has been established. After technological feasibility is established, any additional external software development costs are capitalized.

Costs incurred to acquire or create a computer software product are expensed when incurred as research and development until technological feasibility has been established for the product, at which point such costs are capitalized. Technological feasibility is normally established upon completion of a detailed program design or, in its absence, a working model of the software product.

Capitalization of computer software costs ceases when the product is available for general release to customers. As of June 30, 2016, the Company has not capitalized software costs as no significant costs have been incurred in developing software products and technological feasibility has not been established for new software products and enhancements to existing software.

Note 2. Summary of Significant Accounting Policies (Continued)

Stock Based Compensation

The Company accounts for stock based compensation arrangements granted to employees in accordance with ASC 718, “Compensation: Stock Compensation”, by measuring the grant date fair value of the award and recognizing the resulting expense over the period during which the employee is required to perform service in exchange for the award.

The Company accounts for stock based compensation arrangements issued to non-employees using the fair value approach prescribed by ASC 505-50, “Equity-Based Payments to Non-Employees”. The value of non-employee stock based compensation is re-measured at the end of each reporting period until the award vests and is recognized as stock based compensation expense over the period during which the non-employee provides the services.

Stock based compensation expense for both employee and non-employee awards is recognized on a straight-line basis over the appropriate service period for awards that are only subject to service conditions and is recognized using the accelerated attribution method for awards that are subject to performance conditions. Stock based compensation expense is only recognized for awards subject to performance conditions if it is probable that the performance condition will be achieved.

Net Loss Per Share

Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period, adjusted to give effect to potentially dilutive securities. However, potentially dilutive securities are excluded from the computation of diluted net loss per share to the extent that their effect is anti-dilutive.

Segment Reporting

The chief operating decision maker for the Company is its Chief Executive Officer. The Chief Executive Officer reviews financial information presented on a Condensed Consolidated and Combined basis for purposes of allocating resources and evaluating financials performance. The Company has one business activity and there are no segment managers who are held accountable for operations, operating results, or plans for levels or components below the Condensed Consolidated and Combined unit level. Accordingly, management has determined that the Company operates in one reportable segment.

Recent Accounting Pronouncements

In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which changes how companies measure credit losses on most financial instruments measured at amortized cost, such as loans, receivables and held-to-maturity debt securities. Rather than generally recognizing credit losses when it is probable that the loss has been incurred, the revised guidance requires companies to recognize an allowance for credit losses for the difference between the amortized cost basis of a financial instrument and the amount of amortized cost that the company expects to collect over the instrument's contractual life. ASU 2016-13 is effective for fiscal periods beginning after December 15, 2019 and must be adopted as a cumulative effect adjustment to retained earnings. Early adoption is permitted. The Company is evaluating the potential effects of the adoption to the Company's financial statements.

In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606). The amendments, which address transition, collectability, non-cash consideration and the presentation of sales and other similar taxes, do not change the core principles of ASU 2014-09, but rather address implementation issues and are intended to result in more consistent application. The Company intends to adopt this standard on January 1, 2018. The Company is evaluating the potential effects of the adoption to the Company's financial statements.

In April 2016, the FASB issued ASU No. 2016-10, Identifying Performance Obligations and Licensing, which amends certain aspects of ASC 606, Revenue from Contracts with Customers. ASU No. 2016-10 amends step two of the new revenue standard’s five-step model to include guidance on immaterial promised goods or services, shipping and handling activities and identifying when promises represent performance obligations. ASU No. 2016-10 also provides guidance related to licensing such as, but not limited to, sales-based and usage-based royalties and renewals of license that provide a right to use intellectual property. The Company intends to adopt this standard on January 1, 2018. The Company is evaluating the potential effects of the adoption to the Company's financial statements.

Note 2. Summary of Significant Accounting Policies (Continued)

In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ("ASU 2016-06"). ASU 2016-09 changes certain aspects of the accounting for share-based payment awards, including: accounting and cash flow classification for excess tax benefits and deficiencies; income tax withholding obligations; forfeitures; and cash flow classification. ASU 2016-09 is effective for the Company in the first quarter of 2017, with early adoption permitted. The Company is currently in the process of evaluating this new guidance.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). The update is aimed at making leasing activities more transparent and comparable, and requires substantially all leases be recognized by lessees on their balance sheet as a right-of-use asset and corresponding lease liability, including leases currently accounted for as operating leases. This guidance will become effective for interim and annual reporting periods beginning with the year ending December 31, 2019. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements and related disclosures.

In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), which addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments, including a provision that requires equity investments (except for investments accounted for under the equity method of accounting) to be measured at fair value, with changes in fair value recognized in current earnings. ASU 2016-01 is effective for the Company in the first quarter of 2018, with early adoption permitted. The Company is currently evaluating the effect that ASU 2016-01 will have on its consolidated financial statements and related disclosures.

Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the American Institute of Certified Public Accountants, and the Securities and Exchange Commission (SEC) did not have, or are not believed by management to have, a material impact on the Company's present or future consolidated financial statements.

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Business Combinations and Investments

6 Months Ended

Jun. 30, 2016

Business Combinations [Abstract]

Business Combinations and Investments

Business Combinations and Investments

2016 Acquisitions

NaviNet, Inc.

On November 30, 2015, NantHealth entered into a definitive agreement with 3BE Holdings, LLC (“3BE”) to acquire 100% of the outstanding equity interest of NaviNet, Inc. (“NaviNet”) in exchange for $83,529 in cash, subject to working capital adjustments, 15,513,726 newly issued Series H units with a fair value of $52,500 and contingent arrangements or earnouts of up to $12,250. The contingent arrangements or earnouts require the Company to pay up to a total of $12,250 to certain of NaviNet’s former shareholders if NaviNet’s revenues to those former shareholders exceed certain thresholds during the years ended December 31, 2016 and 2017. These contingent amounts or earnouts have been excluded from the purchase price consideration and will be accounted for as sales incentives if and when certain predefined targets are met and will be reflected as contra revenue. The cash portion of the acquisition was financed through a promissory note with NantCapital, LLC (“NantCapital”), an affiliate of the Company (See Note 19). In June 2016, the Company paid an additional $455 to 3BE as the final working capital adjustment and accounted for the payment as an increase to the purchase price of NaviNet.

The following table summarizes the total purchase consideration for the acquisition.

	Amounts
Cash paid to seller at closing	$	74,823
Cash paid to option holders after closing	2,580
Cash paid to escrow account	6,126
Working capital settlement payment	455
Fair value of Series H units	52,500
Total consideration	$	136,484

Note 3. Business Combinations and Investments (Continued)

The total consideration was allocated to the net assets acquired based upon their estimated fair values, as follows:

	Amounts
Cash and restricted cash	$	4,804
Accounts receivable, net	9,996
Property, plant and equipment, net	7,953
Other assets, net	3,830
Accounts payable	(4,585		)
Accrued expenses	(3,488		)
Deferred revenue	(2,603		)
Deferred tax liability	(19,533		)
Assumed indebtedness	(23,324		)
Trade names	3,000
Developed technology	32,000
Customer relationships	52,000
Goodwill	76,434
Total fair value of net assets acquired	$	136,484

At the closing of the acquisition, the Company repaid all $23,324 of assumed indebtedness presented in the table above.

Immediately prior to the closing, the board of directors of NaviNet approved the acceleration of all unvested stock options of NaviNet. The equity incentive plan governing these stock options stated that NaviNet’s board of directors had the right, at its sole discretion, to accelerate vesting of all outstanding stock options in connection with a change of control. The option holders received a payout of $7,394 immediately following the closing which represented the fair value of all vested and unvested stock options. The Company recognized in its post-acquisition results $4,814 of compensation expense during the six months ended June 30, 2016 since the Company received post-combination benefits resulting from the accelerated vesting.

During the three and six months ended June 30, 2016, the Company recognized $3,736 and $2,058 measurement period adjustments, which increased goodwill. For the three months ended June 30, 2016, the measurement period adjustments included a $953 decrease to goodwill related to a decrease in deferred revenue, a $4,234 increase to goodwill related to a deferred tax liability increase due to tax changes, and a $455 increase to goodwill for working capital adjustments.

Prior to the acquisition, NaviNet entered into retention agreements with certain executives which provided the executives the right to receive severance benefits if their employment is terminated by the Company without cause or by the employee for good reason within 12 months after the closing date. 3BE agreed to indemnify the Company for any severance amounts paid by the Company pursuant to these agreements. During the six months ended June 30, 2016, the Company recognized a measurement period adjustment of $1,678 to decrease goodwill, representing the Company’s right to be reimbursed for such amounts from 3BE.

2015 Acquisitions

NantCloud

On May 31, 2015, NantHealth purchased 100% of the outstanding equity interests in NantCloud Services, LLC ("NantCloud") from NantWorks in exchange for $7,227 in cash the amount invested in that business by NantWorks, without any markup.NantCloud offers a secure cloud infrastructure for hosting sensitive healthcare data as well as information technology security services tailored for the healthcare industry. The Company accounted for its purchase of NantCloud as an arrangement between entities under common control. As a result, the acquisition was recorded and presented at carryover basis and the historical statements of operations and cash flows of NantCloud have been combined with the Company beginning on the date of inception of common control of each respective entity, which started February 10, 2014.

Note 3. Business Combinations and Investments (Continued)

Healthcare Solutions from Harris Corporation

On June 16, 2015, the Company entered into a definitive agreement with Harris Corporation (“Harris”) to acquire certain assets and assume certain liabilities related to its Healthcare Solutions (“HCS”) business in exchange for $50,556 in cash, subject to working capital adjustments. The acquired assets comprise a business that helps complex healthcare delivery organizations achieve better patient outcomes, clinical and administrative workflow efficiency and stronger collaboration across the continuum of care. The acquisition of HCS closed on July 1, 2015 and furthered the Company’s mission to provide patients with a fully integrated and personalized approach to the delivery of care.

The purchase consideration included $7,500 of funds held in escrow for the settlement of net working capital and other indemnifications. In March 2016, and in accordance with the definitive agreements, the Company received $2,494 out of the escrow account for the settlement of the final net working capital adjustment.

The following table summarizes the total purchase consideration for the acquisition, including the effects of the final net working capital adjustment:

	Amounts
Cash paid to Harris at closing	$	43,056
Cash paid to escrow account	7,500
Working capital released from escrow	(2,494		)
Total consideration	$	48,062

The fair value of the identifiable assets acquired and liabilities assumed for the HCS business is shown in the table below:

	Amounts
Accounts receivable, net	$	13,119
Other liabilities, net	(2,205		)
Deferred revenue	(16,076		)
Trademarks	2,400
Developed technology	14,400
Customer relationships	8,900
Backlog	3,900
Goodwill	23,624
Total fair value of net assets acquired	$	48,062

 The estimated lives of the acquired trademark, customer relationships and backlog are five years and the estimated life of the developed technology is seven years. The excess of the purchase price over the net tangible and intangible assets of $23,624 was recorded as goodwill, which reflects primarily the expected future benefit to be realized upon integration of Health Solutions technology into NantHealth’s existing software solutions. During the three and six months ended June 30, 2016, the Company recognized $127 and $274, respectively, of immaterial measurement period adjustments, which increased goodwill.

2015 Investments

IOBS

On June 16, 2015, the Company invested $1,750 in Innovative Oncology Business Solutions, Inc. (“IOBS”) in exchange for 1,750,000 shares of IOBS’s Series A preferred stock. IOBS offers community oncology practices an alternative medical home model for oncology patients that improves health outcomes, enhances patient care experiences and significantly reduces costs of care. The shares of preferred stock represent 35.0% of the outstanding equity of IOBS on an as-converted basis. The Company applied the cost method to account for its investment because the preferred stock is not considered in-substance common stock, is not considered a debt instrument as the Company cannot unilaterally demand redemption of the preferred stock and the preferred stock does not have a readily determinable fair value.

Note 3. Business Combinations and Investments (Continued)

Investment in TRM and sale to NantCRO

On September 8, 2015, the Company completed a Contribution Agreement with the members of Translational Research Management, LLC (“TRM”) whereby those members contributed their 54% equity interest in TRM in exchange for $250 in cash and 267,905 of the Company’s Series A units. TRM is a management services organization committed to building a nationwide network of community based medical oncology professionals dedicated to offering research studies to their patients. On June 1, 2016, the Series A units issued to TRM were converted into 44,778 shares of the Company’s common stock.

On the same day, the Company sold its 54% equity interest in TRM to NantCRO, LLC, a wholly owned subsidiary of NantOmics, in exchange for $250 in cash and 610,928 of NantOmics’ Series A-2 units, which is equivalent in value to the purchase price paid by the Company. As a result, the Company’s ownership percentage in NantOmics is approximately 14.3%.

Pro Forma Financial Information (Unaudited)

The historical operating results of NaviNet and HCS have not been included in the Company’s historical Condensed Consolidated and Combined operating results prior to the acquisition date. The following financial information presents the combined results of continuing operations for the three and six months ended June 30, 2015, as if the acquisitions had been completed on January 1, 2015. There are no pro forma adjustments for the three or six months ended June 30, 2016 since the results of NaviNet and HCS are included in the Company’s Condensed Consolidated and Combined financial statements beginning on January 1, 2016 and July 1, 2015, respectively. The unaudited pro forma results do not reflect any material adjustments, operating efficiencies or potential cost savings that may result from the consolidation of operations.

	Three Months Ended June 30,			Six Months Ended June 30,
	2015			2015
Revenue	$	33,768		$	66,115
Net loss	$	(22,461	)	$	(41,317	)

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Accounts Receivable, net

6 Months Ended

Jun. 30, 2016

Receivables [Abstract]

Accounts Receivable, net

Accounts Receivable, net

Accounts receivable, net excludes amounts related to PCS and other services that were billed but not yet delivered at each period end. These undelivered services are also excluded from the deferred revenue balances on the accompanying Condensed Consolidated and Combined balance sheets. The amount of outstanding and unpaid invoices excluded from both the accounts receivable and deferred revenue balances as of June 30, 2016 and December 31, 2015 was $8,953 and $12,643, respectively.

Accounts receivable are included on the consolidated balance sheets net of the allowance for doubtful accounts. The allowance for doubtful accounts at June 30, 2016 and December 31, 2015 was $1,333 and $956, respectively.

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Inventories, net

6 Months Ended

Jun. 30, 2016

Inventory Disclosure [Abstract]

Inventories, net

Inventories, net

Inventories, net as of June 30, 2016 and December 31, 2015 consisted of the following:

	June 30, 2016		December 31, 2015
	(Unaudited)
Finished goods	$	1,946	$	2,005
Raw Materials	396		141
Inventories, net	$	2,342	$	2,146

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Prepaid Expenses and Other Current Assets

6 Months Ended

Jun. 30, 2016

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Prepaid Expenses and Other Current Assets

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets as of June 30, 2016 and December 31, 2015 consisted of the following:

	June 30, 2016		December 31, 2015
	(Unaudited)
Prepaid expenses	$	6,692	$	2,161
Restricted cash (1)	100		—
Deferred offering costs	—		3,902
Escrow receivable	1,678		2,494
Other current assets	238		150
	$	8,708	$	8,707

(1) Additional $250 of non-current restricted cash is included in the Company’s Condensed Consolidated and Combined balance sheets as part of Other assets.

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Property, Plant and Equipment, net

6 Months Ended

Jun. 30, 2016

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment, net

Property, Plant and Equipment, net

Property, plant and equipment, net as of June 30, 2016 and December 31, 2015 consisted of the following:

	June 30, 2016			December 31, 2015
	(Unaudited)
Computer equipment and software	$	27,281		$	9,865
Furniture and equipment	8,216			6,772
Leasehold and building improvements	3,285			1,433
Internal use software	7,170			1,018
Construction in progress	2,529			1,462
	48,481			20,550
Less: accumulated depreciation and amortization	(22,068		)	(6,651		)
Property, plant and equipment, net	$	26,413		$	13,899

Depreciation expense was $1,956 and $3,669 for the three and six month ended June 30, 2016, respectively. Depreciation expense was $853 and $1,663 for the three and six month ended June 30, 2015, respectively.

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Intangible Assets

6 Months Ended

Jun. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Intangible Assets

The Company’s definite-lived intangible assets as of June 30, 2016 and December 31, 2015 consisted of the following:

	June 30, 2016 (Unaudited)
	Customer Relationships			Developed Technologies			Software License			Intellectual Property			Trade Name			Total
Gross carrying amount	$	65,200		$	98,930		$	5,000		$	2,400		$	3,000		$	174,530
Accumulated amortization	(4,693		)	(37,879		)	(938		)	(480		)	(375		)	(44,365		)
Intangible assets, net	$	60,507		$	61,051		$	4,062		$	1,920		$	2,625		$	130,165

Note 8. Intangible Assets (Continued)

	December 31, 2015
	Customer Relationships			Developed Technologies			Software License			Intellectual Property			Trade Name		Total
Gross carrying amount	$	13,200		$	66,930		$	5,000		$	2,400		$	—	$	87,530
Accumulated amortization	(1,680		)	(30,326		)	(313		)	(240		)	—		(32,559		)
Intangible assets, net	$	11,520		$	36,604		$	4,687		$	2,160		$	—	$	54,971

Amortization expense was $5,710 and $11,806 for the three and six months ended June 30, 2016, respectively. Amortization expense was $2,235 and $4,579 for the three and six months ended June 30, 2015, respectively.

During the six months ended June 30, 2016, the Company recorded $87,000 of definite-lived intangible assets related to the acquisition of NaviNet (See Note 3). These intangibles are amortized over a period of four to fifteen years.

On September 29, 2015, the Company entered into an exclusive license agreement with NorthShore University Health System (“NorthShore”) to further develop their Health Heritage software platform and to license the software to customers. As part of the agreement, the Company paid NorthShore a one-time license fee of $5,000 and will pay royalties of at least $750 annually for the first four years of the agreement. The Company will have no obligation to pay any additional royalties after 7 years or once aggregate royalties reach $5,000.

The estimated future amortization expense over the next five years and thereafter for the intangible assets that exist as of June 30, 2016 is as follows:

	Amounts
2016	$	11,039
2017	19,078
2018	18,478
2019	18,166
2020	14,958
Thereafter	48,446
Total	$	130,165

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Goodwill

6 Months Ended

Jun. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Goodwill

Goodwill activity during the six months ended June 30, 2016 is shown as follows:

	Amounts
Balance at December 31, 2015
Goodwill	$	63,668
Accumulated impairment losses	(6,950		)
Net balance	56,718
Activity during the year (Unaudited):
Acquisitions (See Note 3)	74,376
Measurement period adjustments (See Note 3)	2,332
Net activity during the period	76,708
Balance at June 30, 2016 (Unaudited):
Goodwill	140,376
Accumulated impairment losses	(6,950		)
Net balance	$	133,426

The Company added $76,434 of goodwill related to the acquisition of NaviNet on January 1, 2016 (See Note 3).

On July 1, 2015, the Company added $23,624 of goodwill related to the acquisition of the HCS business (See Note 3).

Measurement period adjustments during three and six months ended June 30, 2016 were $3,863 and $2,332, respectively (See Note 3). No measurement period adjustments were recorded during three and six months ended June 30, 2015.

The Company completed the required impairment assessment at June 30, 2016 and December 31, 2015, and noted no impairment. Consequently, no impairment charges were recorded.

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Equity Method Investments

6 Months Ended

Jun. 30, 2016

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments

Equity Method Investments

On June 19 and June 30, 2015, the Company purchased a total of 168,463,611 Series A-2 units of NantOmics, LLC (“NantOmics”) for an aggregate purchase price of $250,774. Additionally, NantOmics issued 610,928 of its Series A-2 units to the Company on September 8, 2015 in exchange for NantOmics' subsidiary's purchase of NantHealth’s equity interests in TRM. The Series A-2 units represent approximately 14.3% of NantOmics’ issued and outstanding membership interests. NantOmics is majority owned by NantWorks and delivers molecular diagnostic capabilities with the intent of providing actionable intelligence and molecularly driven decision support for cancer patients and their providers at the point of care. The Company applied the equity method to account for its investment in NantOmics as the interest in the equity is similar to a partnership interest. Further, the Company has the ability to exert significant influence over the operating and financial policies of the entity since NantWorks controls both NantHealth and NantOmics. The difference between the carrying amount of the investment in NantOmics and the Company’s underlying equity in NantOmics’ net assets relate to both definite- and indefinite-lived intangible assets. The Company attributed $28,195 and $14,382 of these differences to NantOmics’ developed technologies and its reseller agreement with the Company, respectively, and the remaining basis differences were attributed to goodwill. The Company amortizes the basis differences related to the definite-lived intangible assets over the assets’ estimated useful lives and records these amounts as a reduction in the carrying amount of its investment and an increase in its equity method loss.

The Company reports its share of NantOmics’ income or loss and the amortization of basis differences using a one quarter lag. For the three and six months ended June 30, 2016, the Company recognized $2,375 and $5,289 of loss related to this investment, respectively. From the date of investment through June 30, 2015, the Company recognized $145 of loss related to this investment.

Note 10. Equity Method Investments (Continued)

The Company used the following summarized financial information for NantOmics for the trailing six months ended March 31, 2016 to record its equity method losses for the six months ended June 30, 2016:

	Trailing Six Months Ended March 31, 2016
Sales	$	1,935
Gross loss	(1,738		)
Loss from operations	(16,049		)
Net loss	(14,703		)
Net loss attributable to NantOmics	$	(13,561	)

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Variable Interest Entities

6 Months Ended

Jun. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Variable Interest Entities

Variable Interest Entities

On June 16, 2015, the Company invested $1,750 in IOBS’ Series A preferred stock and therefore has a variable interest in IOBS. The shares of preferred stock represent 35.0% of the outstanding equity of IOBS on an as-converted basis. The Company applied the cost method to account for its investment because the preferred stock is not considered in-substance common stock, is not considered a debt instrument as the Company cannot unilaterally demand redemption of the preferred stock and the preferred stock does not have a readily determinable fair value.

As of June 30, 2016, IOBS was considered a variable interest entity. The Company is not the primary beneficiary of IOBS because it only has the rights to elect two of five directors. All major decisions of IOBS require the majority vote by the members of the board of directors, including decisions made to manage the business including hiring and firing of officers and other critical management functions. Therefore, the Company does not consolidate IOBS.

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Fair Value Measurements

6 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

Assets and liabilities measured at fair value on a recurring basis as of June 30, 2016 and December 31, 2015 consisted of the following:

	June 30, 2016 (Unaudited)
	Total  fair value		Quoted price in active markets for identical assets  (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs  (Level 3)
Assets
Cash equivalents	$	84,119	$	84,119	$	—	$	—
Marketable securities	71		71		—		—

	December 31, 2015
	Total  fair value		Quoted price in active markets for identical assets  (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs  (Level 3)
Assets
Cash equivalents	$	630	$	630	$	—	$	—
Marketable securities	1,243		1,243		—		—

The Company’s intangible assets and goodwill are measured at fair value on a non-recurring basis and are adjusted to fair value only if an impairment charge is recognized. The fair values of the Company’s marketable securities and cash equivalents (consisting of mainly money market accounts) are based on quoted market prices in active markets with no valuation adjustment. (see Note 8).

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Lease Arrangements

The Company leases both real estate and equipment used in its operations and classifies those leases as either operating or capital leases for accounting purposes. As of June 30, 2016 and December 31, 2015, the Company had no material capital leases and the remaining lives of its operating leases ranged from one to six years.

Rental expense associated with operating leases is charged to expense in the year incurred and is included in the Condensed Consolidated and Combined statements of operations. For the three and six months ended June 30, 2016, the rental expense was charged to selling, general and administrative expense in the amount of $1,130 and $2,240, respectively. For the three and six months ended June 30, 2015, the rental expense was charged to selling, general and administrative expense in the amount of $390 and $736, respectively.

As of June 30, 2016, the Company’s future minimum rental commitments under its non-cancellable operating leases are as follows:

	Amounts
2016	$	2,262
2017	4,132
2018	2,139
2019	468
2020	271
Total minimum rental commitments	$	9,272

Regulatory Matters

The Company is subject to regulatory oversight by the U.S. Food and Drug Administration and other regulatory authorities with respect to the development, manufacturing, and sale of some of the solutions. In addition, the Company is subject to the Health Insurance Portability and Accountability Act (“HIPAA”), the Health Information Technology for Economic and Clinical Health Act and related patient confidentiality laws and regulations with respect to patient information. The Company reviews the applicable laws and regulations regarding effects of such laws and regulations on its operations on an on-going basis and modifies operations as appropriate. The Company believes it is in substantial compliance with all applicable laws and regulations. Failure to comply with regulatory requirements could have a significant adverse effect on the Company’s business and operations.

Legal Matters

The Company is, from time to time, subject to claims and litigation that arise in the ordinary course of its business. The Company intends to defend vigorously any such litigation that may arise under all defenses that would be available. In the opinion of management, the ultimate outcome of proceedings of which management is aware, even if adverse to them, would not have a material adverse effect on the Company’s Condensed Consolidated and Combined financial condition or results of operations.

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Income Taxes

6 Months Ended

Jun. 30, 2016

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The benefit from income taxes for the three and six months ended June 30, 2016 was $14,211 and $18,609, respectively. The provision for income taxes for the three and six months ended June 30, 2015 was $0 and $1, respectively. The 2016 year to date benefit from income taxes consists of three components, income tax provision from January 1 through May 31, 2016 for the corporate subsidiaries of NantHealth; income tax benefit resulted from the LLC conversion of NantHealth on June 1, 2016; and income tax provision for the consolidated group for June 2016 based on the annual effective tax rate.

Note 14. Income Taxes (Continued)

The effective tax rates for the three months ended June 30, 2016 and 2015 were 20.8% and 0%, respectively. The effective tax rates for the six months ended June 30, 2016 and 2015 were 17.6% and 0%, respectively. The effective tax rate for the three and six months ended June 30, 2016 differed from the federal statutory rate primarily due to the fact that Nant Health, LLC converted from a pass-through entity to a C corporation, NantHealth, Inc. on June 1, 2016. Prior to the LLC Conversion, the tax provision represents that of Nant Health, LLC’s corporate subsidiaries. The effective tax rate for the three and six months ended June 30, 2015 differed from the Federal statutory rate primarily due to Nant Health LLC’s pass through status. The increase in the Company's effective tax rates for the three and six months ended June 30, 2016 as compared to the three and six months ended June 30, 2015 was also attributable to the LLC Conversion (See Note 16). 

The Company regularly evaluates the likelihood of the realization of the Company's deferred tax assets and reduces the carrying amount of those deferred tax assets by a valuation allowance to the extent the Company believes a portion will not be realized. The Company considers many factors when assessing the likelihood of future realization of the Company's deferred tax assets, including recent cumulative earnings experience by taxing jurisdiction, expectations of future taxable income, the carryforward periods available to us for tax reporting purposes and other relevant factors. Significant judgment is required in making this assessment.  As a result, the Company establishes a full valuation allowance against its deferred tax assets.

One or more of the Company's legal entities file income tax returns in the U.S. Federal jurisdiction, various U.S. state jurisdictions and certain foreign jurisdictions.  The Company currently is not under any federal, state or foreign income tax audits and is no longer subject to U.S. federal income tax examinations for years ended on or before December 31, 2012, or to California state income tax examinations for years ended on or before December 31, 2011.  During the three and six months ended June 30, 2015, the gross amount of the Company’s unrecognized tax benefits (“UTB”) increased by approximately $154 and $219, respectively, as a result of tax positions taken during the current year.

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Redeemable Series F Units / Common Stock

6 Months Ended

Jun. 30, 2016

Temporary Equity Disclosure [Abstract]

Redeemable Series F Units/Common Stock

Redeemable Series F Units / Common Stock

On June 20, 2014, the Kuwait Investment Office (“KIO”) purchased 53,580,996 Series F units of the Company through a Delaware blocker corporation, KHealth Holdings, Inc. (“KHealth”), at a purchase price of $2.7995 per unit for an aggregate amount of $150,000. KIO is the London Office of the Kuwait Investment Authority (“KIA”). As part of the investment, KIO had the right and option, but not the obligation, to require NantHealth to redeem 100% of the outstanding shares of KHealth at an amount equal to the original purchase price of $150,000 plus accrued annual interest of 7.0% if the Company had not (i) filed a registration statement on Form S-1 with the Securities and Exchange Commission on or before December 20, 2015 or (ii) had not completed a qualified initial public offering on or before June 20, 2016 (the “Put Right”). KIO did not exercise the Put Right, and it expired as of June 20, 2016.

As of December 31, 2015, the Company determined that the redemption of the Series F units was probable due to the uncertainty of completing a qualified initial public offering under prong (ii) and, as such, accrued $16,042 of interest as a reduction to members’ equity. Prior to December 31, 2015, the Company had concluded that redemption was not probable and had not adjusted the carrying value of such units to redemption value. The Series F units were classified in the Condensed Consolidated and Combined balance sheet as of December 31, 2015 as temporary equity as a result of the contingent redemption feature.

As of June 1, 2016 as part of the LLC Conversion, the Series F units converted to 10,714,285 shares of redeemable common stock. Since the Put Right expired unexercised on June 20, 2016, the shares of common stock owned by KIO are no longer redeemable and are included in Stockholders’ equity.

Note 15. Redeemable Series F Units / Common Stock (Continued)

The change in net carrying amount of the Series F units and common stock owned by KIO for the six months ended June 30, 2016 consisted of the following:

	Redeemable Series F Units			Redeemable Common Stock			Common Stock and Additional-Paid-in-Capital
Balance at December 31, 2015	$	166,042		$	—		$	—
Accretion to redemption value	4,375			—			—
Balance at June 1, 2016 pre-LLC Conversion	170,417			—			—
LLC Conversion	(170,417		)	170,417			—
Balance at June 1, 2016 post-LLC Conversion	—			170,417			—
Accretion to redemption value	—			583			—
Balance at June 20, 2016 pre expiration of Put Right	—			171,000			—
Expiration of Put Right at June 20, 2016	—			(171,000		)	171,000
Balance at June 20, 2016 post expiration of Put Right and at June 30, 2016	$	—		$	—		$	171,000

Letter Agreement with NantWorks

On May 22, 2016, the Company signed a letter agreement with NantWorks whereby NantWorks agreed to purchase directly from KIO all of the outstanding shares of KHealth if KIO had elected to exercise its Put Right. KIO did not exercise its Put Right (which expired by its terms on June 20, 2016) and NantWorks, therefore did not purchase these shares.

Stockholders’ Equity

Initial Public Offering

On June 7, 2016, the Company completed its IPO of 6,500,000 shares of common stock at a public offering price of $14.00 per share. Additionally, on June 9, 2016, the underwriters partially exercised their overallotment option to purchase an additional 400,000 shares of the common stock at $14.00 per share. The Company received $83,230 in proceeds from its IPO, after deducting underwriting discounts and commissions and offering costs of $13,370.

In connection with the pricing of the Company’s IPO on June 1, 2016, $40,590 of principal and accrued interest on the Company’s related party promissory notes with NantOmics was converted into 2,899,297 shares of the Company’s common stock.

Subsequent to June 30, 2016, the Company issued additional shares of common stock to holders of vested phantom units, net of withholding tax obligations triggered by the issuance of these shares (See Note 20).

LLC Conversion and Reverse Split

Upon completion of the LLC Conversion on June 1, 2016, (a) all of the Company’s outstanding units automatically converted into shares of common stock, based on the relative rights of the Company's pre-IPO equityholders as set forth in the Company's limited liability company agreement (the "LLC Agreement") and (b) the Company adopted and filed a certificate of incorporation with the Secretary of State of the state of Delaware and adopted bylaws. The Company adopted and filed an amendment to its certificate of incorporation (the "Amended Certificate of Incorporation") with the Secretary of State of the state of Delaware to effect a 1-for-5.5 reverse stock split of its common stock on June 1, 2016.

Note 16. Stockholders’ Equity (Continued)

Below is a summary of the number of member units pre LLC Conversion as converted into common shares:

	Pre Conversion (Units)
Former Series A Unit Holders	420,255,676
Former Series B Unit Holders	19,109,603
Former Series C Unit Holders	3,470,254
Former Series D Unit Holders	3,572,066
Former Series E Unit Holders	35,720,664
Former Series G Unit Holders	59,099,908
Former Series H Unit Holders	15,513,726
Total Member Units	556,741,897

The units in the table above were converted to 99,651,444 shares of common stock and 10,462 shares of restricted stock. The members’ equity balance of $525,388 was reclassified into common stock and additional paid-in capital in the Condensed Consolidated and Combined balance sheet as of June 30, 2016.

LLC Agreement and Amended Certificate of Incorporation

Prior to the LLC Conversion, the Company’s operations were governed by its LLC Agreement. Upon the consummation of the LLC Conversion, the Company converted into a corporation, and the LLC Agreement no longer governs the Company's operations or the rights of its equityholders.

The LLC Agreement provided that the board of directors had the power and discretion to manage and control the business, property and affairs of the company, but that certain actions required the consent of certain of the Company's former members. Under the LLC Agreement, the Company had units authorized, including Series A through H units. Each equityholder holding Series A, B, D, E, F, G or H units had one vote for each unit held. Profits interests units awarded under the Nant Health, LLC Profits Interests Plan (the "Profits Interests Plan") took the form of Series C units of the Company. Holders of Series C units did not have the right to vote. The LLC Agreement also set forth the rights of and restrictions on unitholders, including certain rights of first refusal and preemptive and co-sale rights. The LLC Agreement also provided that, upon the LLC Conversion, the allocation of shares of the Company's common stock among the pre-IPO equityholders was dependent upon the IPO price of its common stock, based on the relative rights of the pre-IPO equityholders as set forth in the LLC Agreement. As a result, as part of the LLC Conversion, the Company set the actual allocation of shares among its pre-IPO equityholders based upon the IPO price of its common stock.

Concurrently with the consummation of the LLC Conversion, the LLC Agreement was terminated, other than certain provisions relating to certain pre-termination tax matters and certain liabilities.

In accordance with the Company’s amended and restated certificate of incorporation, which was filed immediately following the closing of its IPO, the Company is authorized to issue 750,000,000 shares of common stock, with a par value of $0.0001 per share, and 20,000,000 shares of undesignated preferred stock, with a par value of $0.0001 per share. Holders of the Company’s common stock are entitled to one vote for each share held on all matters submitted to a vote of its stockholders. Holders of the Company’s common stock have no cumulative voting rights. Further, as of June 30, 2016, holders of the Company’s common stock have no preemptive, conversion, redemption or subscription rights and there are no sinking fund provisions applicable to the Company’s common stock. Upon liquidation, dissolution or winding-up of the Company, holders of the Company’s common stock are entitled to share ratably in all assets remaining after payment of all liabilities and the liquidation preferences of any outstanding shares of preferred stock. Subject to preferences that may be applicable to any outstanding shares of preferred stock, holders of the Company’s common stock are entitled to receive dividends, if any, as may be declared from time to time by the Company’s board of directors. As of June 30, 2016, there were no outstanding shares of preferred stock.

Note 16. Stockholders’ Equity (Continued)

2016 Equity Issuances

NaviNet

On January 1, 2016, the Company issued 15,513,726 Series H units to 3BE Holdings, LLC for the acquisition of NaviNet at a purchase price of $3.3841 per unit for an aggregate amount of $52,500. The Series H units had substantially the same rights and preferences as the former Series B, D, E, F and G units that were outstanding at the time. On June 1, 2016, the Series H units issued to 3BE Holdings, LLC were converted into 3,749,998 shares of the Company’s common stock.

2015 Equity Issuances

Allscripts Investment

On June 29, 2015, the Company issued 59,099,908 Series G units to Allscripts Healthcare Solutions, Inc. (“Allscripts”), at a purchase price of $3.3841 per unit for an aggregate amount of $200,000. The Series G units had substantially the same rights and preferences as the former Series B, D, E and F units that were outstanding at the time. On June 1, 2016, the Series G units issued to Allscripts were converted into 14,285,714 shares of the Company’s common stock.

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Stockholders' Equity

6 Months Ended

Jun. 30, 2016

Equity [Abstract]

Stockholders' Equity

Redeemable Series F Units / Common Stock

On June 20, 2014, the Kuwait Investment Office (“KIO”) purchased 53,580,996 Series F units of the Company through a Delaware blocker corporation, KHealth Holdings, Inc. (“KHealth”), at a purchase price of $2.7995 per unit for an aggregate amount of $150,000. KIO is the London Office of the Kuwait Investment Authority (“KIA”). As part of the investment, KIO had the right and option, but not the obligation, to require NantHealth to redeem 100% of the outstanding shares of KHealth at an amount equal to the original purchase price of $150,000 plus accrued annual interest of 7.0% if the Company had not (i) filed a registration statement on Form S-1 with the Securities and Exchange Commission on or before December 20, 2015 or (ii) had not completed a qualified initial public offering on or before June 20, 2016 (the “Put Right”). KIO did not exercise the Put Right, and it expired as of June 20, 2016.

As of December 31, 2015, the Company determined that the redemption of the Series F units was probable due to the uncertainty of completing a qualified initial public offering under prong (ii) and, as such, accrued $16,042 of interest as a reduction to members’ equity. Prior to December 31, 2015, the Company had concluded that redemption was not probable and had not adjusted the carrying value of such units to redemption value. The Series F units were classified in the Condensed Consolidated and Combined balance sheet as of December 31, 2015 as temporary equity as a result of the contingent redemption feature.

As of June 1, 2016 as part of the LLC Conversion, the Series F units converted to 10,714,285 shares of redeemable common stock. Since the Put Right expired unexercised on June 20, 2016, the shares of common stock owned by KIO are no longer redeemable and are included in Stockholders’ equity.

Note 15. Redeemable Series F Units / Common Stock (Continued)

The change in net carrying amount of the Series F units and common stock owned by KIO for the six months ended June 30, 2016 consisted of the following:

	Redeemable Series F Units			Redeemable Common Stock			Common Stock and Additional-Paid-in-Capital
Balance at December 31, 2015	$	166,042		$	—		$	—
Accretion to redemption value	4,375			—			—
Balance at June 1, 2016 pre-LLC Conversion	170,417			—			—
LLC Conversion	(170,417		)	170,417			—
Balance at June 1, 2016 post-LLC Conversion	—			170,417			—
Accretion to redemption value	—			583			—
Balance at June 20, 2016 pre expiration of Put Right	—			171,000			—
Expiration of Put Right at June 20, 2016	—			(171,000		)	171,000
Balance at June 20, 2016 post expiration of Put Right and at June 30, 2016	$	—		$	—		$	171,000

Letter Agreement with NantWorks

On May 22, 2016, the Company signed a letter agreement with NantWorks whereby NantWorks agreed to purchase directly from KIO all of the outstanding shares of KHealth if KIO had elected to exercise its Put Right. KIO did not exercise its Put Right (which expired by its terms on June 20, 2016) and NantWorks, therefore did not purchase these shares.

Stockholders’ Equity

Initial Public Offering

On June 7, 2016, the Company completed its IPO of 6,500,000 shares of common stock at a public offering price of $14.00 per share. Additionally, on June 9, 2016, the underwriters partially exercised their overallotment option to purchase an additional 400,000 shares of the common stock at $14.00 per share. The Company received $83,230 in proceeds from its IPO, after deducting underwriting discounts and commissions and offering costs of $13,370.

In connection with the pricing of the Company’s IPO on June 1, 2016, $40,590 of principal and accrued interest on the Company’s related party promissory notes with NantOmics was converted into 2,899,297 shares of the Company’s common stock.

Subsequent to June 30, 2016, the Company issued additional shares of common stock to holders of vested phantom units, net of withholding tax obligations triggered by the issuance of these shares (See Note 20).

LLC Conversion and Reverse Split

Upon completion of the LLC Conversion on June 1, 2016, (a) all of the Company’s outstanding units automatically converted into shares of common stock, based on the relative rights of the Company's pre-IPO equityholders as set forth in the Company's limited liability company agreement (the "LLC Agreement") and (b) the Company adopted and filed a certificate of incorporation with the Secretary of State of the state of Delaware and adopted bylaws. The Company adopted and filed an amendment to its certificate of incorporation (the "Amended Certificate of Incorporation") with the Secretary of State of the state of Delaware to effect a 1-for-5.5 reverse stock split of its common stock on June 1, 2016.

Note 16. Stockholders’ Equity (Continued)

Below is a summary of the number of member units pre LLC Conversion as converted into common shares:

	Pre Conversion (Units)
Former Series A Unit Holders	420,255,676
Former Series B Unit Holders	19,109,603
Former Series C Unit Holders	3,470,254
Former Series D Unit Holders	3,572,066
Former Series E Unit Holders	35,720,664
Former Series G Unit Holders	59,099,908
Former Series H Unit Holders	15,513,726
Total Member Units	556,741,897

The units in the table above were converted to 99,651,444 shares of common stock and 10,462 shares of restricted stock. The members’ equity balance of $525,388 was reclassified into common stock and additional paid-in capital in the Condensed Consolidated and Combined balance sheet as of June 30, 2016.

LLC Agreement and Amended Certificate of Incorporation

Prior to the LLC Conversion, the Company’s operations were governed by its LLC Agreement. Upon the consummation of the LLC Conversion, the Company converted into a corporation, and the LLC Agreement no longer governs the Company's operations or the rights of its equityholders.

The LLC Agreement provided that the board of directors had the power and discretion to manage and control the business, property and affairs of the company, but that certain actions required the consent of certain of the Company's former members. Under the LLC Agreement, the Company had units authorized, including Series A through H units. Each equityholder holding Series A, B, D, E, F, G or H units had one vote for each unit held. Profits interests units awarded under the Nant Health, LLC Profits Interests Plan (the "Profits Interests Plan") took the form of Series C units of the Company. Holders of Series C units did not have the right to vote. The LLC Agreement also set forth the rights of and restrictions on unitholders, including certain rights of first refusal and preemptive and co-sale rights. The LLC Agreement also provided that, upon the LLC Conversion, the allocation of shares of the Company's common stock among the pre-IPO equityholders was dependent upon the IPO price of its common stock, based on the relative rights of the pre-IPO equityholders as set forth in the LLC Agreement. As a result, as part of the LLC Conversion, the Company set the actual allocation of shares among its pre-IPO equityholders based upon the IPO price of its common stock.

Concurrently with the consummation of the LLC Conversion, the LLC Agreement was terminated, other than certain provisions relating to certain pre-termination tax matters and certain liabilities.

In accordance with the Company’s amended and restated certificate of incorporation, which was filed immediately following the closing of its IPO, the Company is authorized to issue 750,000,000 shares of common stock, with a par value of $0.0001 per share, and 20,000,000 shares of undesignated preferred stock, with a par value of $0.0001 per share. Holders of the Company’s common stock are entitled to one vote for each share held on all matters submitted to a vote of its stockholders. Holders of the Company’s common stock have no cumulative voting rights. Further, as of June 30, 2016, holders of the Company’s common stock have no preemptive, conversion, redemption or subscription rights and there are no sinking fund provisions applicable to the Company’s common stock. Upon liquidation, dissolution or winding-up of the Company, holders of the Company’s common stock are entitled to share ratably in all assets remaining after payment of all liabilities and the liquidation preferences of any outstanding shares of preferred stock. Subject to preferences that may be applicable to any outstanding shares of preferred stock, holders of the Company’s common stock are entitled to receive dividends, if any, as may be declared from time to time by the Company’s board of directors. As of June 30, 2016, there were no outstanding shares of preferred stock.

Note 16. Stockholders’ Equity (Continued)

2016 Equity Issuances

NaviNet

On January 1, 2016, the Company issued 15,513,726 Series H units to 3BE Holdings, LLC for the acquisition of NaviNet at a purchase price of $3.3841 per unit for an aggregate amount of $52,500. The Series H units had substantially the same rights and preferences as the former Series B, D, E, F and G units that were outstanding at the time. On June 1, 2016, the Series H units issued to 3BE Holdings, LLC were converted into 3,749,998 shares of the Company’s common stock.

2015 Equity Issuances

Allscripts Investment

On June 29, 2015, the Company issued 59,099,908 Series G units to Allscripts Healthcare Solutions, Inc. (“Allscripts”), at a purchase price of $3.3841 per unit for an aggregate amount of $200,000. The Series G units had substantially the same rights and preferences as the former Series B, D, E and F units that were outstanding at the time. On June 1, 2016, the Series G units issued to Allscripts were converted into 14,285,714 shares of the Company’s common stock.

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Stock Based Compensation

6 Months Ended

Jun. 30, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Based Compensation

Stock Based Compensation

Profits Interests Plan

On December 3, 2013, the Company adopted the Profits Interests Plan under which it had reserved an aggregate of 63,750,000 Series C units for issuance to associates, consultants and contractors of the Company in consideration for bona fide services provided to the Company.

The Series C units were considered profits interests of the Company and did not entitle their holders (the “Series C Members”) to receive distributions if the Company were liquidated immediately after the grant. Instead, the Series C Members were entitled to receive an allocation of a portion of the profit and loss of the Company arising after the date of the grant and, subject to vesting conditions, distributions made out of a portion of the profits of the Company arising after the grant date of the Series C units. Grants of the Series C units were either fully vested, partially vested, or entirely unvested at the time of the grant as determined by the Board.

Series C Members were not entitled to receive any distributions until the aggregate distributions made by the Company exceeded a hurdle amount applicable to those Series C units. The hurdle amount for each grant was determined by the Board at the date of issuance of such units. After all other members received their applicable hurdle amount, the Series C Members were entitled to receive their percentage interest of such excess distributions.

As of December 31, 2015 and through the date of the LLC Conversion, the Company had 3,470,254 Series C units outstanding.

Upon the LLC Conversion (See Note 16) on June 1, 2016, the Company issued 28,973 shares of common stock to holders of vested Series C units and 10,462 shares of restricted stock to holders of unvested Series C units. The shares of restricted stock issued to holders of unvested profits interests are subject to forfeiture until becoming fully vested in accordance with the terms of the original Series C unit grant agreements.

During the three and six months ended June 30, 2016, and three and six months ended June 30, 2015, the Company recognized stock based compensation for the Series C units/restricted stock of -$366, -$268, $125 and $1,031, respectively. Total stock-based compensation expense of $348 is expected to be recognized on a straight-line basis over the next 2.3 years for the unvested restricted stock outstanding as of June 30, 2016. The unrecognized stock compensation relates to nonemployees and the awards are being accounted for pursuant to ASC 505-50. Stock compensation expense for the Series C units/restricted stock issued to the nonemployees is being calculated based on the fair value of the award on each balance sheet date and the attribution of that cost is being recognized ratably over the vesting period.

Note 17. Stock Based Compensation (Continued)

Phantom Unit Plan

On March 31, 2015, the Company approved the Nant Health, LLC Phantom Unit Plan (the “Phantom Unit Plan”). The maximum number of phantom units that may be issued under the Phantom Plan is equal to 11,590,909 minus the number of issued and outstanding Series C units of the Company. As of June 30, 2016, there were 6,173,676 phantom units outstanding under the Phantom Unit Plan, after giving effect to the 1-for-5.5 reverse stock split. Each grant of phantom units made to a participant under the Phantom Unit Plan vests over a defined service period, subject to completion of a liquidity event. The Company’s IPO satisfied the liquidity event condition and the phantom units now entitle their holders to cash or non-cash payments in an amount equal to the number of vested units held by that participant multiplied by the fair market value of one share of the Company’s common stock on the date each phantom unit vests. After the Company’s IPO, the Company will no longer issue any units under the Phantom Unit Plan.

The Company intends to settle all vested phantom unit payments held by United States-based participants in shares of the Company’s common stock and classifies these awards as equity awards in its Condensed Consolidated and Combined balance sheet. Awards held by participants who are based outside of the United States will be settled in cash and are classified within accrued expenses on the Condensed Consolidated and Combined balance sheet as of June 30, 2016.

Stock-based compensation expense related to phantom units is included in the following line items in the accompanying Condensed Consolidated and Combined statement of operations for the three and six months ended June 30, 2016 and 2015:

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Cost of revenue	$	7,032	$	—	$	7,032	$	—
Selling, general and administrative	23,577		—		23,577		—
Research and development	13,449		—		13,449		—
Total	$	44,058	$	—	$	44,058	$	—

The following table summarizes the activity related to the unvested phantom units during the six months ended June 30, 2016:

	Number of Units		Weighted Average Grant date value per phantom unit
Unvested phantom units outstanding - December 31, 2015	3,653,008		$15.78
Granted	108,995		$14.45
Vested	—		$—
Forfeited	(447,076	)	$15.80
Unvested phantom units outstanding - March 31, 2016	3,314,927		$15.74
Granted	2,985,340		$14.58
Vested	(1,612,421	)	$15.21
Forfeited	(126,591	)	$15.40
Unvested phantom units outstanding - June 30, 2016	4,561,255		$15.18

During the six months ended June 30, 2016, the Company granted 1,043,450 phantom units to employees of related companies who are providing services to the Company under the shared services agreement with NantWorks (See Note 19) as well as certain consultants of the Company. Stock compensation expense for the phantom units issued to these participants is re-measured at the end of each reporting period until the awards vest. All other grants of phantom units have been made to employees of the Company. The Company uses the accelerated attribution method to recognize expense for all phantom units since the awards’ vesting was subject to the completion of a liquidity event. The grant date fair value of the phantom units granted prior to LLC Conversion was estimated using both an option pricing method and a probability weighted expected return method.

Note 17. Stock Based Compensation (Continued)

As of June 30, 2016, the Company had $46,675 of unrecognized stock based compensation expense related to phantom units which will be recognized over a weighted-average period of 3.5 years. Of that amount, $40,717 of unrecognized expense is related to employee grants with a weighted-average period of 3.4 years and $5,958 of unrecognized expense is related to non-employee grants with a weighted-average period of 3.8 years.

Subsequent to June 30, 2016, the Company issued 1,056,689 shares of common stock to settle phantom units that were vested as of June 30, 2016 (See Note 20).

2016 Equity Incentive Plan

In May and June of 2016, the Company’s Board of Directors adopted and the Company’s stockholders approved the 2016 Equity Incentive Plan (“the 2016 Plan”) in connection with the Company’s IPO. The 2016 Plan provides for the grant of incentive stock options, non-statutory stock options, restricted stock, restricted stock units, stock appreciation rights, performance units and performance shares to employees, directors and consultants. A total of 6,000,000 shares of common stock are reserved for issuance pursuant to the 2016 Plan.

The Company issued 10,462 shares of restricted stock under the 2016 Plan during the three months ended June 30, 2016 resulting from the conversion of the Series C units. No other awards have been issued pursuant to the 2016 Plan as of June 30, 2016.

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Net Loss Per Share

6 Months Ended

Jun. 30, 2016

Earnings Per Share [Abstract]

Net Loss Per Share

Net Loss Per Share

The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted net loss per share of common stock and redeemable common stock for the three and six months ended June 30, 2016 and 2015:

	Three Months Ended June 30,								Six Months Ended June 30,
	2016					2015			2016					2015
	Common Stock			Redeemable Common Stock		Common Stock			Common Stock			Redeemable Common Stock		Common Stock
Loss per share numerator
Net loss	$	(54,132	)	$	—	$	(17,236	)	$	(87,277	)	$	—	$	(31,201	)
Accretion to redemption value of series F/redeemable common stock	(2,333		)	2,333		—			(4,958		)	4,958		—
Net (loss)/income for basic/diluted loss per share	$	(56,465	)	$	2,333	$	(17,236	)	$	(92,235	)	$	4,958	$	(31,201	)
Loss per share denominator:
Weighted-average shares for basic net loss per share	104,072,198			9,419,152		82,406,012			101,846,445			10,066,719		82,014,695
Effect of dilutive securities	—			—		—			—			—		—
Weighted-average shares for dilutive net loss per share	104,072,198			9,419,152		82,406,012			101,846,445			10,066,719		82,014,695
Basic & Diluted net loss per share	$	(0.54	)	$	0.25	$	(0.21	)	$	(0.91	)	$	0.49	$	(0.38	)

Note 18. Net Loss Per Share (Continued)

The net loss per share and weighted-average shares outstanding have been computed to give effect to the LLC Conversion (See Note 16) that occurred June 1, 2016 prior to the Company’s initial public offering.  In conjunction with the LLC Conversion, (a) all of the Company’s outstanding units automatically converted into shares of common stock, based on the relative rights of the Company's pre-IPO equityholders as set forth in the limited liability company agreement and (b) the Company adopted and filed a certificate of incorporation with the Secretary of State of the state of Delaware and adopted bylaws. The Company filed an amended certificate of incorporation to effect a 1-for-5.5 reverse stock split of its common stock on June 1, 2016.

As of December 31, 2015, the Company determined that the redemption of the Series F units was probable due to the uncertainty of completing a qualified initial public offering and, as such, accrued interest as a reduction to members’ equity. Prior to December 31, 2015, the Company had concluded that redemption was not probable and had not adjusted the carrying value of such units to redemption value. As of June 1, 2016 as part of the LLC Conversion, the Series F units converted to shares of redeemable common stock. The Put Right on redeemable common stock expired unexercised on June 20, 2016, and as of that date, the shares of common stock owned by KIO are no longer redeemable and are included in common shares (See Note 15).

For the three and six months ended June 30, 2016, basic and diluted net loss per share included 1,056,689 shares of common stock issuable to holders of vested phantom units as of June 30, 2016, and which were issued subsequent to June 30, 2016 (See Note 20).

For the three and six months ended June 30, 2016 and 2015, 4,561,255 and 3,719,091 shares of common stock issuable to holders of unvested phantom units, respectively were not included in the computation of diluted net loss per share applicable to common stockholders because they would have an antidilutive effect on the diluted net loss per share.

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Related Party Transactions

6 Months Ended

Jun. 30, 2016

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

NantWorks Shared Services Agreement

In October 2012, the Company entered into a shared services agreement with NantWorks that provides for ongoing services from NantWorks in areas such as public relations, information technology and cloud services, human resources and administration management, finance and risk management, environmental health and safety, sales and marketing services, facilities, procurement and travel, and corporate development and strategy (the "Shared Services Agreement"). The Company was billed quarterly for such services at cost, without mark-up or profit for NantWorks, but including reasonable allocations of employee benefits, facilities and other direct or fairly allocated indirect costs that relate to the associates providing the services. The Company incurred $3,157 and $5,721 of expenses during the three and six months ended June 30, 2016, respectively, related to selling, general and administrative services provided by the Company to NantWorks and affiliates, net of services provided to NantWorks and affiliates. The Company incurred $3,050 and $5,266 of expenses during the three and six months ended June 30, 2015 related to selling, general and administrative services provided by NantWorks. Additionally, the Company incurred $210 of expenses during the six months ended June 30, 2016 related to research and development services provided by NantWorks. No expenses were incurred during three Months ended June 30, 2016. The Company incurred $308 and $663 of expenses during the three and six months ended June 30, 2015, respectively related to research and development services provided by NantWorks.

Related Party Receivables and Payables

As of June 30, 2016 and December 31, 2015, the Company had related party receivables of $2,884 and $2,545, respectively. The related party receivables balances at June 30, 2016 and December 31, 2015 primarily consisted of a $2,150 receivable from Ziosoft KK related to the sale of Qi Imaging. As of June 30, 2016 and December 31, 2015 the Company had related party payables of $11,426 and $10,166, respectively. The related party payables balances primarily relate to amounts owed to NantWorks pursuant to the Shared Services Agreement, amounts owed to NantOmics under the Original Reseller Agreement and the Amended Reseller Agreement and amounts owed to NantCapital under the related party promissory note. The balance of the related party receivables and payables represent amounts paid by affiliates on behalf of the Company or vice versa.

19. Related Party Transactions (Continued)

Amended Reseller Agreement

On June 19, 2015, the Company entered into a five and a half year exclusive Reseller Agreement with NantOmics for sequencing and bioinformatics services (the "Original Reseller Agreement"). On May 9, 2016, the Company and NantOmics executed an Amended and Restated Reseller Agreement (the “Amended Reseller Agreement”), pursuant to which the Company received the worldwide, exclusive right to resell NantOmics’ quantitative proteomic analysis services, as well as related consulting and other professional services, to institutional customers (including insurers and self-insured healthcare providers) throughout the world. The Company retained its existing rights to resell NantOmics’ genomic sequencing and bioinformatics services.Under the Amended Reseller Agreement, the Company is responsible for various aspects of delivering its sequencing and molecular analysis solutions, including patient engagement and communications with providers such as providing interpretations of the reports delivered to the physicians and resolving any disputes, ensuring customer satisfaction, and managing billing and collections.

The Amended and Restated Reseller Agreement grants to the Company the right to renew the agreement (with exclusivity) for up to three renewal terms, each lasting three years, if the Company achieves projected volume thresholds, as follows: (i) the first renewal option can be exercised if the Company completes at least 300 tests between June 19, 2015 and June 30, 2020; (ii) the second renewal option can be exercised if the Company completes at least 570 tests between July 1, 2020 and June 30, 2023; and (iii) the third renewal option can be exercised if the Company completes at least 760 tests between July 1, 2023 and June 30, 2026. If the Company does not meet the applicable volume threshold during the initial term or the first or second exclusive renewal terms, the Company can renew for a single additional three year term, but only on a non-exclusive basis.

Under the Reseller Agreement, NantHealth agreed to pay NantOmics non-cancellable annual minimum fees of $2,000 beginning with and for the 2016 calendar year. Subject to the Company exercising at least one of its renewal options described above, the Amended Reseller Agreement requires the Company to pay annual minimum fees to NantOmics of at least $25,000 per year for each of the calendar years from 2021 through 2023 and $50,000 per year for each of the calendar years from 2024 through 2029.As of June 30, 2016 and December 31, 2015, the Company has $1,365 and $3,111, respectively, of outstanding related party payables related to the Amended Reseller Agreement, respectively.

In January 2015, the Company entered into an agreement to provide certain research related sequencing services to a university which is engaged in researching the genetic causes of certain hereditary diseases (“the university”). The agreement provides that the university pay the Company $10,000 in exchange for the Company providing sequencing services through the Original Reseller Agreement.

At the request of the university, certain public and private charitable 501(c)(3) non-profit organizations provided partial funding for the sequencing and related bioinformatics costs associated with the project. The Company’s Chairman and CEO serves as the CEO and a member of the board of directors of each of the organizations and by virtue of these positions he may have influence or control over these organizations. The university was not contractually or otherwise required to use the Company’s molecular profiling solutions or any of the Company’s other products or services as part of the charitable gift. During the three and six months ended June 30, 2016, $1,180 and $1,620, respectively, was recorded as a deemed capital contribution within members' equity. During the three and six months ended June 30, 2015, $490 was recorded as a deemed capital contribution within members' equity (See Note 1). During the three and six months ended June 30, 2016, $708 and $972 of costs, respectively were recorded as other services costof revenue related to the service performed. During the three and six months ended June 30, 2015, $294 of costs were recognized as other services cost of revenue related to the service performed.

19. Related Party Transactions (Continued)

Related Party Promissory Notes

On January 4, 2016, the Company executed a $112,666 demand promissory note in favor of NantCapital to fund the acquisition of NaviNet. The note bears interest at a per annum rate of 5.0%, compounded annually and computed on the basis of the actual number of days elapsed and a year of 365 or 366 days, as the case may be. The unpaid principal and any accrued and unpaid interest on the note was originally due and payable on demand in either (i) cash, (ii) shares of the Company's common stock based on per share price of $18.6126, (iii) Series A-2 units of NantOmics based on a per unit price of $1.484 to the extent such equity is owned by the Company or (iv) any combination of the foregoing, all at the option of NantCapital. Subject to the preceding sentence, the Company may prepay the outstanding amount at any time, either in whole or in part, without premium or penalty and without the prior consent of NantCapital. On May 9, 2016, the promissory note with NantCapital was amended to provide that all outstanding principal and accrued interest is due and payable on June 30, 2021, and not on demand. No other terms of the promissory note were changed. As of June 30 2016, the total principal and interest outstanding on the note amounted to $115,421.

On January 22, 2016, the Company executed a demand promissory note in favor of NantOmics. The principal amount of the initial advance totaled $20,000. On March 8, 2016, NantOmics made a second advance to the Company for $20,000. The note bears interest at a per annum rate is 5.0% and is compounded annually. In May and June of 2016, the Company executed amendments to the demand promissory note with NantOmics, which provide that all unpaid principal of each advance owed to NantOmics and any accrued and unpaid interest would convert automatically into shares of the Company’s common stock after pricing of the Company’s IPO and immediately after conversion of the Company from a limited liability company to a corporation. On June 1, 2016, approximately $40,590 of principal and accrued interest under the promissory note with NantOmics was converted into 2,899,297 shares of the Company’s common stock in connection with the IPO. The Company can request additional advances from NantOmics and, as of June 30, 2016, there was no outstanding balance on the promissory note.

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Subsequent Events

6 Months Ended

Jun. 30, 2016

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

On July 25, 2016, the Company issued 1,056,689 shares of common stock to participants of the Phantom Unit Plan based in the United States who held vested phantom units as of June 30, 2016, after withholding approximately 538,794 shares to satisfy tax withholding obligations. The Company made a cash payment of $6,259 to cover employee withholding taxes and employer payroll taxes upon the settlement of these vested phantom units. The Company also paid $235 on August 9, 2016 to cash-settle 16,818 vested phantom units held by participants of the Phantom Unit Plan based outside of the United States.

The Company evaluated subsequent events after the balance sheet date of June 30, 2016 through the date of the filing of this report, and determined that with the exception of the subsequent issuance of common shares and related cash payments described above, there were no other reportable subsequent events.

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Use of Estimates

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Condensed Consolidated and Combined financial statements and accompanying notes. Actual results may differ from those estimates.

Variable Interest Entities

Variable Interest Entities

The Company evaluates its ownership interests, contractual rights and other interests in entities to determine if the entities are variable interest entities (“VIEs”), if it has a variable interest in those entities and the nature and extent of those interests. These evaluations are highly complex and involve judgment, the use of estimates and assumptions based on available historical information. In order for the Company to be the primary beneficiary of a VIE, it must have both (1) the power to direct the activities of a VIE that most significantly affect the VIE’s economic performance and (2) the obligation to absorb losses or the right to receive benefits that, in either case, could potentially be significant to the VIE. The Company consolidates entities of which it is the primary beneficiary.

The Company determines whether it is the primary beneficiary of a VIE upon its initial involvement with the VIE and reassesses whether it is the primary beneficiary on an ongoing basis. This determination is based upon an analysis of the design of the VIE, including the VIE’s structure and activities, the power to make significant economic decisions held by the Company and by other parties, and the variable interests owned by the Company and other parties.

Fair Value of Financial Measurements

Fair Value of Financial Instruments

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are classified and disclosed in one of the following three categories:

Note 2. Summary of Significant Accounting Policies (Continued)

• Level 1—Quoted prices for identical assets or liabilities in active markets;

• Level 2—Quoted prices for similar assets or liabilities in active markets or quoted prices for identical or similar assets or liabilities in markets that are not active or are directly or indirectly observable; and

• Level 3—Unobservable inputs that reflect estimates and assumptions.

The carrying amounts reported in the balance sheet for cash and cash equivalents, accounts receivable, accounts payable, notes payable, deferred revenue and other current monetary assets and liabilities approximate fair value because of the immediate or short-term maturity of these financial instruments.

In accordance with this guidance, the Company measures its cash equivalents and marketable securities at fair value. The Company’s cash equivalents and marketable securities are classified within Level 1. Cash equivalents and marketable securities are valued primarily using quoted market prices utilizing market observable inputs.

Revenue Recognition

The Company engages in various multiple-element arrangements, which may generate revenue across any of the sources noted above. For multiple-element software arrangements that involve the sale of the Company’s proprietary software, PCS and other software-related services, vendor-specific objective evidence (“VSOE”) of fair value is required to allocate and recognize revenue for each element. VSOE of fair value is determined based on the price charged in which each deliverable is sold separately. The Company has established VSOE for PCS on certain of its software solutions using the Stated Renewal Method. In this instance, the Company has determined that its stated renewals are substantive and appropriate for use in the Stated Renewal Method. The Company has not yet established VSOE of fair value for any element other than PCS for a portion of its arrangements. In situations where VSOE of fair value exists for PCS but not a delivered element (typically the software license and services elements), the residual method is used to allocate revenue to the undelivered element equal to its VSOE value with the remainder allocated to the delivered elements. In situations in which VSOE of fair value does not exist for all of the undelivered software-related elements, revenue is deferred until only one undelivered element remains (typically the PCS element) and then recognized following the pattern of delivery of the final undelivered element. The Company’s multiple element arrangements typically provide for renewal of PCS terms upon expiration of the original term. The amounts of these PCS renewals are recognized as revenue ratably over the specified PCS renewal period.

For non-software arrangements that include multiple-elements, primarily consisting of the Company’s SaaS agreements, revenue recognition involves the identification of separate units of accounting after consideration of combining and/or segmenting contracts and allocation of the arrangement consideration to the units of accounting on the basis of their relative selling price. The selling price used for each deliverable is based on VSOE of fair value, if available, third party evidence (“TPE”) of fair value if VSOE is not available, or the Company’s best estimate of selling price (“BESP”) if neither VSOE nor TPE is available. In determining the units of accounting for these arrangements, the Company evaluates whether each deliverable has stand-alone value as defined in the FASB’s guidance. The Company’s SaaS arrangements are treated as a single unit of accounting as the professional services do not have standalone value. As a result, the Company recognizes initial system implementation and deployment fees ratably over a period of time from when the system implementation or deployment services are completed and accepted by the customer over the longer of the life of the agreement or the estimated customer life.

If an arrangement to deliver software requires significant production, modification or customization of the licensed software, the Company accounts for the arrangement as a construction-type contract. The Company currently recognizes revenue for these arrangements using the completed-contract method as it does not currently have sufficient information to reliably estimate the percentage of completion for these projects. The Company considers these arrangements to be substantially complete upon the clients’ acceptance of the software and related professional services and consistently applies this policy to all contract accounting arrangements.

Transaction processing fees are recognized on a monthly basis based on the number of transactions processed and the fee per transaction.

Revenue derived from reseller arrangements is recognized when the resellers, in turn, sell the software solution to their clients and installation of the software solution has occurred, provided all other revenue recognition criteria are met. This is commonly referred to as the sell-through method and the Company defers recognition until there is a sell-through by the reseller to an actual end user clients and acceptance by the end user has occurred.

Revenue Recognition

Revenue represents the consideration received or receivable from clients for solutions and services provided by the Company. The Company’s revenue is generated from the following sources:

• Software and hardware— Software and hardware revenue is generated from the sale of the Company’s software, on either a perpetual or term license basis, and the sale of hardware. The software is installed on the client’s site or the client’s designated vendor’s site and is not hosted by the Company or by a vendor contracted by the Company. The Company also sells third-party software and hardware to its clients. Solutions sold are grouped together under the NantOS Interoperability platform (formerly known as cOS) and FusionFX, NantOS, DeviceConX and HBox.

• Software-as-a-service (“SaaS”)— SaaS revenue is generated from clients’ access to and usage of the Company’s hosted software solutions on a subscription basis for a specified contract term, which is usually monthly. In SaaS arrangements, the client cannot take possession of the software during the term of the contract and generally has the right to access and use the software and receive any software upgrades published during the subscription period. Solutions sold under a SaaS model include the NantOS Interoperability cancer decision support solution (formerly known as eviti) NantOS Interoperability and Navinet.

• Maintenance— Maintenance revenue includes ongoing post contract client support (“PCS”) or maintenance during the paid PCS term. Additionally, PCS includes ongoing development of software updates and upgrades provided to the client on a when and if available basis.

• Sequencing and molecular analysis— Sequencing and molecular analysis revenue is generated by the process of performing sequencing and analysis of whole genome DNA, RNA and proteomic results. Revenue is recognized when services have been performed.

• Other services— Other services includes revenue from professional services provided that are generally complementary to the software and may or may not be required for the software to function as desired by the client. The services are generally provided in the form of training and implementation services during the software license period and do not include PCS. Other services revenue also includes the sale of nursing and therapy services provided to patients in a home care setting and any other services not included in the preceding revenue sources.

Revenue is recognized when persuasive evidence of an arrangement exists, services or products have been provided to the client, fees are fixed or determinable, and collectability is reasonably assured. While most of the Company’s arrangements include short-term payment terms, the Company on occasion provides payment terms to clients in excess of one year from the date of contract signing. The Company does not recognize revenue for arrangements containing these extended payment terms until such payments become due. Certain of the Company’s customer arrangements allow for termination for convenience with advanced notice. Such termination rights do not allow for refunds other than prepaid PCS or other services. These provisions do not affect when the Company commences revenue recognition. The Company also has certain arrangements which allow for termination and refunds of fees in the event that software acceptance by the customer has not occurred. In these instances, the Company will defer all revenue until software acceptance has occurred.

Investments in Related Parties

Investments in Related Parties

Investments in and advances to related parties in which the Company has a substantial ownership interest of approximately 20 percent to 50 percent, or for which the Company exercises significant influence but not control over policy decisions, are accounted for by the equity method. Investments in limited liability companies that are similar to partnerships are also accounted for under the equity method if more than minor influence over the operation of the investee exists (generally through more than 3-5% ownership). As part of that accounting, the Company recognizes gains and losses that arise from the issuance of stock by a related party that results in changes in the Company’s proportionate share of the dollar amount of the related party’s equity.

Investments in related parties are assessed for possible impairment when events indicate that the fair value of the investment may be below the Company’s carrying value. When such a condition is deemed to be other than temporary, the carrying value of the investment is written down to its fair value, and the amount of the write-down is included in net loss. In making the determination as to whether a decline is other than temporary, the Company considers such factors as the duration and extent of the decline, the investee’s financial performance, and the Company’s ability and intention to retain its investment for a period that will be sufficient to allow for any anticipated recovery in the investment’s market value. The new cost basis of investments in these equity investees is not changed for subsequent recoveries in fair value.

Differences between the Company’s carrying value of an equity investment and its underlying equity in the net assets of the related party are assigned to the extent practicable to specific assets and liabilities based on the Company’s analysis of the various factors giving rise to the difference. When appropriate, the Company’s share of the related party’s reported earnings is adjusted quarterly to reflect the difference between these allocated values and the related party’s historical book values. 

Business Combinations

Business Combinations

Business combinations are accounted for using the acquisition method of accounting. Under the acquisition method, assets acquired and liabilities assumed are recorded at their respective fair values as of the acquisition date. Any excess of the purchase price over the estimated fair values of the net assets acquired is recorded as goodwill. Management routinely monitors the factors impacting the acquired assets and liabilities. Transaction related costs are expensed as incurred. The operating results of the acquired business are reflected in the Company’s Condensed Consolidated and Combined financial statements as of the acquisition date. 

Deferred Revenue

Deferred Revenue

The Company records deferred revenue when it receives cash from clients prior to meeting the applicable revenue recognition criteria. The Company uses judgment in determining the period over which the deliverables are recognized as revenue. As of June 30, 2016 and December 31, 2015, current and non-current deferred revenue are comprised of deferrals for fees related to software licenses, SaaS arrangements, PCS services, non-PCS services and other revenue. Non-current deferred revenue as of June 30, 2016 is expected to be recognized on or after July 1, 2017.

Deferred Implementation Costs

Deferred Implementation Costs

The Company provides SaaS and information technology management services under long-term arrangements which require the Company to perform system implementation activities. In some cases, the arrangements either contain provisions requiring customer acceptance of the setup activities prior to commencement of the ongoing services arrangement or the system implementation services do not have separate value from the service revenue. Up-front fees billed during the setup phase for these arrangements are deferred and setup costs that are direct and incremental to the contract are capitalized. The costs deferred consist of employee compensation and benefits for those employees directly involved with performing system implementation or deployment services, as well as other direct and incremental costs.

The Company defers costs estimated to be realizable based on contracted implementation revenue and estimated margin from the service contract. The Company periodically reviews the deferred implementation contracts for recoverability. The costs are amortized to cost of revenue ratably over a period of time from when the system implementation or deployment services are completed and accepted to the end of the contract term or the expected customer life, whichever is longer.

Research and Development Expenses

Research and Development Expenses

Research and development (“R&D”) costs incurred to establish the technological feasibility of software to be sold are expensed as incurred. These expenses include the costs of the Company’s proprietary R&D efforts, as well as costs incurred in connection with certain licensing arrangements.

Development costs, consisting primarily of employee salaries and benefits, incurred in the research and development of new software products and enhancements to existing software products for external use are expensed as incurred until technological feasibility has been established. After technological feasibility is established, any additional external software development costs are capitalized.

Costs incurred to acquire or create a computer software product are expensed when incurred as research and development until technological feasibility has been established for the product, at which point such costs are capitalized. Technological feasibility is normally established upon completion of a detailed program design or, in its absence, a working model of the software product.

Capitalization of computer software costs ceases when the product is available for general release to customers. As of June 30, 2016, the Company has not capitalized software costs as no significant costs have been incurred in developing software products and technological feasibility has not been established for new software products and enhancements to existing software.

Stock Based Compensation

Stock Based Compensation

The Company accounts for stock based compensation arrangements granted to employees in accordance with ASC 718, “Compensation: Stock Compensation”, by measuring the grant date fair value of the award and recognizing the resulting expense over the period during which the employee is required to perform service in exchange for the award.

The Company accounts for stock based compensation arrangements issued to non-employees using the fair value approach prescribed by ASC 505-50, “Equity-Based Payments to Non-Employees”. The value of non-employee stock based compensation is re-measured at the end of each reporting period until the award vests and is recognized as stock based compensation expense over the period during which the non-employee provides the services.

Stock based compensation expense for both employee and non-employee awards is recognized on a straight-line basis over the appropriate service period for awards that are only subject to service conditions and is recognized using the accelerated attribution method for awards that are subject to performance conditions. Stock based compensation expense is only recognized for awards subject to performance conditions if it is probable that the performance condition will be achieved.

Net Loss Per Share

Net Loss Per Share

Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period, adjusted to give effect to potentially dilutive securities. However, potentially dilutive securities are excluded from the computation of diluted net loss per share to the extent that their effect is anti-dilutive.

Segment Reporting

Segment Reporting

The chief operating decision maker for the Company is its Chief Executive Officer. The Chief Executive Officer reviews financial information presented on a Condensed Consolidated and Combined basis for purposes of allocating resources and evaluating financials performance. The Company has one business activity and there are no segment managers who are held accountable for operations, operating results, or plans for levels or components below the Condensed Consolidated and Combined unit level. Accordingly, management has determined that the Company operates in one reportable segment.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which changes how companies measure credit losses on most financial instruments measured at amortized cost, such as loans, receivables and held-to-maturity debt securities. Rather than generally recognizing credit losses when it is probable that the loss has been incurred, the revised guidance requires companies to recognize an allowance for credit losses for the difference between the amortized cost basis of a financial instrument and the amount of amortized cost that the company expects to collect over the instrument's contractual life. ASU 2016-13 is effective for fiscal periods beginning after December 15, 2019 and must be adopted as a cumulative effect adjustment to retained earnings. Early adoption is permitted. The Company is evaluating the potential effects of the adoption to the Company's financial statements.

In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606). The amendments, which address transition, collectability, non-cash consideration and the presentation of sales and other similar taxes, do not change the core principles of ASU 2014-09, but rather address implementation issues and are intended to result in more consistent application. The Company intends to adopt this standard on January 1, 2018. The Company is evaluating the potential effects of the adoption to the Company's financial statements.

In April 2016, the FASB issued ASU No. 2016-10, Identifying Performance Obligations and Licensing, which amends certain aspects of ASC 606, Revenue from Contracts with Customers. ASU No. 2016-10 amends step two of the new revenue standard’s five-step model to include guidance on immaterial promised goods or services, shipping and handling activities and identifying when promises represent performance obligations. ASU No. 2016-10 also provides guidance related to licensing such as, but not limited to, sales-based and usage-based royalties and renewals of license that provide a right to use intellectual property. The Company intends to adopt this standard on January 1, 2018. The Company is evaluating the potential effects of the adoption to the Company's financial statements.

In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ("ASU 2016-06"). ASU 2016-09 changes certain aspects of the accounting for share-based payment awards, including: accounting and cash flow classification for excess tax benefits and deficiencies; income tax withholding obligations; forfeitures; and cash flow classification. ASU 2016-09 is effective for the Company in the first quarter of 2017, with early adoption permitted. The Company is currently in the process of evaluating this new guidance.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). The update is aimed at making leasing activities more transparent and comparable, and requires substantially all leases be recognized by lessees on their balance sheet as a right-of-use asset and corresponding lease liability, including leases currently accounted for as operating leases. This guidance will become effective for interim and annual reporting periods beginning with the year ending December 31, 2019. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements and related disclosures.

In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), which addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments, including a provision that requires equity investments (except for investments accounted for under the equity method of accounting) to be measured at fair value, with changes in fair value recognized in current earnings. ASU 2016-01 is effective for the Company in the first quarter of 2018, with early adoption permitted. The Company is currently evaluating the effect that ASU 2016-01 will have on its consolidated financial statements and related disclosures.

Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the American Institute of Certified Public Accountants, and the Securities and Exchange Commission (SEC) did not have, or are not believed by management to have, a material impact on the Company's present or future consolidated financial statements.

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Business Combinations and Investments (Tables)

6 Months Ended

Jun. 30, 2016

Business Combinations [Abstract]

Schedule of Business Acquisitions, Total Purchase Consideration

The following table summarizes the total purchase consideration for the acquisition, including the effects of the final net working capital adjustment:

	Amounts
Cash paid to Harris at closing	$	43,056
Cash paid to escrow account	7,500
Working capital released from escrow	(2,494		)
Total consideration	$	48,062

The following table summarizes the total purchase consideration for the acquisition.

	Amounts
Cash paid to seller at closing	$	74,823
Cash paid to option holders after closing	2,580
Cash paid to escrow account	6,126
Working capital settlement payment	455
Fair value of Series H units	52,500
Total consideration	$	136,484

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The total consideration was allocated to the net assets acquired based upon their estimated fair values, as follows:

	Amounts
Cash and restricted cash	$	4,804
Accounts receivable, net	9,996
Property, plant and equipment, net	7,953
Other assets, net	3,830
Accounts payable	(4,585		)
Accrued expenses	(3,488		)
Deferred revenue	(2,603		)
Deferred tax liability	(19,533		)
Assumed indebtedness	(23,324		)
Trade names	3,000
Developed technology	32,000
Customer relationships	52,000
Goodwill	76,434
Total fair value of net assets acquired	$	136,484

The fair value of the identifiable assets acquired and liabilities assumed for the HCS business is shown in the table below:

	Amounts
Accounts receivable, net	$	13,119
Other liabilities, net	(2,205		)
Deferred revenue	(16,076		)
Trademarks	2,400
Developed technology	14,400
Customer relationships	8,900
Backlog	3,900
Goodwill	23,624
Total fair value of net assets acquired	$	48,062

Business Acquisition, Pro Forma Information

The following financial information presents the combined results of continuing operations for the three and six months ended June 30, 2015, as if the acquisitions had been completed on January 1, 2015. There are no pro forma adjustments for the three or six months ended June 30, 2016 since the results of NaviNet and HCS are included in the Company’s Condensed Consolidated and Combined financial statements beginning on January 1, 2016 and July 1, 2015, respectively. The unaudited pro forma results do not reflect any material adjustments, operating efficiencies or potential cost savings that may result from the consolidation of operations.

	Three Months Ended June 30,			Six Months Ended June 30,
	2015			2015
Revenue	$	33,768		$	66,115
Net loss	$	(22,461	)	$	(41,317	)

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Inventories, net (Tables)

6 Months Ended

Jun. 30, 2016

Inventory Disclosure [Abstract]

Schedule of Inventories, net

Inventories, net as of June 30, 2016 and December 31, 2015 consisted of the following:

	June 30, 2016		December 31, 2015
	(Unaudited)
Finished goods	$	1,946	$	2,005
Raw Materials	396		141
Inventories, net	$	2,342	$	2,146

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Prepaid Expenses and Other Current Assets (Tables)

6 Months Ended

Jun. 30, 2016

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets as of June 30, 2016 and December 31, 2015 consisted of the following:

	June 30, 2016		December 31, 2015
	(Unaudited)
Prepaid expenses	$	6,692	$	2,161
Restricted cash (1)	100		—
Deferred offering costs	—		3,902
Escrow receivable	1,678		2,494
Other current assets	238		150
	$	8,708	$	8,707

(1) Additional $250 of non-current restricted cash is included in the Company’s Condensed Consolidated and Combined balance sheets as part of Other assets.

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Property, Plant and Equipment, net (Tables)

6 Months Ended

Jun. 30, 2016

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment, net

Property, plant and equipment, net as of June 30, 2016 and December 31, 2015 consisted of the following:

	June 30, 2016			December 31, 2015
	(Unaudited)
Computer equipment and software	$	27,281		$	9,865
Furniture and equipment	8,216			6,772
Leasehold and building improvements	3,285			1,433
Internal use software	7,170			1,018
Construction in progress	2,529			1,462
	48,481			20,550
Less: accumulated depreciation and amortization	(22,068		)	(6,651		)
Property, plant and equipment, net	$	26,413		$	13,899

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Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived Intangible Assets

	December 31, 2015
	Customer Relationships			Developed Technologies			Software License			Intellectual Property			Trade Name		Total
Gross carrying amount	$	13,200		$	66,930		$	5,000		$	2,400		$	—	$	87,530
Accumulated amortization	(1,680		)	(30,326		)	(313		)	(240		)	—		(32,559		)
Intangible assets, net	$	11,520		$	36,604		$	4,687		$	2,160		$	—	$	54,971

The Company’s definite-lived intangible assets as of June 30, 2016 and December 31, 2015 consisted of the following:

	June 30, 2016 (Unaudited)
	Customer Relationships			Developed Technologies			Software License			Intellectual Property			Trade Name			Total
Gross carrying amount	$	65,200		$	98,930		$	5,000		$	2,400		$	3,000		$	174,530
Accumulated amortization	(4,693		)	(37,879		)	(938		)	(480		)	(375		)	(44,365		)
Intangible assets, net	$	60,507		$	61,051		$	4,062		$	1,920		$	2,625		$	130,165

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

The estimated future amortization expense over the next five years and thereafter for the intangible assets that exist as of June 30, 2016 is as follows:

	Amounts
2016	$	11,039
2017	19,078
2018	18,478
2019	18,166
2020	14,958
Thereafter	48,446
Total	$	130,165

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Goodwill (Tables)

6 Months Ended

Jun. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

Goodwill activity during the six months ended June 30, 2016 is shown as follows:

	Amounts
Balance at December 31, 2015
Goodwill	$	63,668
Accumulated impairment losses	(6,950		)
Net balance	56,718
Activity during the year (Unaudited):
Acquisitions (See Note 3)	74,376
Measurement period adjustments (See Note 3)	2,332
Net activity during the period	76,708
Balance at June 30, 2016 (Unaudited):
Goodwill	140,376
Accumulated impairment losses	(6,950		)
Net balance	$	133,426

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Equity Method Investments (Tables)

6 Months Ended

Jun. 30, 2016

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments

The Company used the following summarized financial information for NantOmics for the trailing six months ended March 31, 2016 to record its equity method losses for the six months ended June 30, 2016:

	Trailing Six Months Ended March 31, 2016
Sales	$	1,935
Gross loss	(1,738		)
Loss from operations	(16,049		)
Net loss	(14,703		)
Net loss attributable to NantOmics	$	(13,561	)

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis as of June 30, 2016 and December 31, 2015 consisted of the following:

	June 30, 2016 (Unaudited)
	Total  fair value		Quoted price in active markets for identical assets  (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs  (Level 3)
Assets
Cash equivalents	$	84,119	$	84,119	$	—	$	—
Marketable securities	71		71		—		—

	December 31, 2015
	Total  fair value		Quoted price in active markets for identical assets  (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs  (Level 3)
Assets
Cash equivalents	$	630	$	630	$	—	$	—
Marketable securities	1,243		1,243		—		—

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Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Rental Payments for Operating Leases

As of June 30, 2016, the Company’s future minimum rental commitments under its non-cancellable operating leases are as follows:

	Amounts
2016	$	2,262
2017	4,132
2018	2,139
2019	468
2020	271
Total minimum rental commitments	$	9,272

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Redeemable Series F Units / Common Stock (Tables)

6 Months Ended

Jun. 30, 2016

Temporary Equity Disclosure [Abstract]

Schedule of Change in Net Carrying Amount of Equity Interests Owned by Buyer

The change in net carrying amount of the Series F units and common stock owned by KIO for the six months ended June 30, 2016 consisted of the following:

	Redeemable Series F Units			Redeemable Common Stock			Common Stock and Additional-Paid-in-Capital
Balance at December 31, 2015	$	166,042		$	—		$	—
Accretion to redemption value	4,375			—			—
Balance at June 1, 2016 pre-LLC Conversion	170,417			—			—
LLC Conversion	(170,417		)	170,417			—
Balance at June 1, 2016 post-LLC Conversion	—			170,417			—
Accretion to redemption value	—			583			—
Balance at June 20, 2016 pre expiration of Put Right	—			171,000			—
Expiration of Put Right at June 20, 2016	—			(171,000		)	171,000
Balance at June 20, 2016 post expiration of Put Right and at June 30, 2016	$	—		$	—		$	171,000

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Stockholders’ Equity (Tables)

6 Months Ended

Jun. 30, 2016

Equity [Abstract]

Schedule Of Member Units, Pre-Conversion

Below is a summary of the number of member units pre LLC Conversion as converted into common shares:

	Pre Conversion (Units)
Former Series A Unit Holders	420,255,676
Former Series B Unit Holders	19,109,603
Former Series C Unit Holders	3,470,254
Former Series D Unit Holders	3,572,066
Former Series E Unit Holders	35,720,664
Former Series G Unit Holders	59,099,908
Former Series H Unit Holders	15,513,726
Total Member Units	556,741,897

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Stock Based Compensation (Tables)

6 Months Ended

Jun. 30, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs

Stock-based compensation expense related to phantom units is included in the following line items in the accompanying Condensed Consolidated and Combined statement of operations for the three and six months ended June 30, 2016 and 2015:

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Cost of revenue	$	7,032	$	—	$	7,032	$	—
Selling, general and administrative	23,577		—		23,577		—
Research and development	13,449		—		13,449		—
Total	$	44,058	$	—	$	44,058	$	—

Schedule of Share-based Compensation, Activity

The following table summarizes the activity related to the unvested phantom units during the six months ended June 30, 2016:

	Number of Units		Weighted Average Grant date value per phantom unit
Unvested phantom units outstanding - December 31, 2015	3,653,008		$15.78
Granted	108,995		$14.45
Vested	—		$—
Forfeited	(447,076	)	$15.80
Unvested phantom units outstanding - March 31, 2016	3,314,927		$15.74
Granted	2,985,340		$14.58
Vested	(1,612,421	)	$15.21
Forfeited	(126,591	)	$15.40
Unvested phantom units outstanding - June 30, 2016	4,561,255		$15.18

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Net Loss Per Share (Tables)

6 Months Ended

Jun. 30, 2016

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted net loss per share of common stock and redeemable common stock for the three and six months ended June 30, 2016 and 2015:

	Three Months Ended June 30,								Six Months Ended June 30,
	2016					2015			2016					2015
	Common Stock			Redeemable Common Stock		Common Stock			Common Stock			Redeemable Common Stock		Common Stock
Loss per share numerator
Net loss	$	(54,132	)	$	—	$	(17,236	)	$	(87,277	)	$	—	$	(31,201	)
Accretion to redemption value of series F/redeemable common stock	(2,333		)	2,333		—			(4,958		)	4,958		—
Net (loss)/income for basic/diluted loss per share	$	(56,465	)	$	2,333	$	(17,236	)	$	(92,235	)	$	4,958	$	(31,201	)
Loss per share denominator:
Weighted-average shares for basic net loss per share	104,072,198			9,419,152		82,406,012			101,846,445			10,066,719		82,014,695
Effect of dilutive securities	—			—		—			—			—		—
Weighted-average shares for dilutive net loss per share	104,072,198			9,419,152		82,406,012			101,846,445			10,066,719		82,014,695
Basic & Diluted net loss per share	$	(0.54	)	$	0.25	$	(0.21	)	$	(0.91	)	$	0.49	$	(0.38	)

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Description of Business and Basis of Presentation - Initial Public Offering and LLC Conversion (Details) $ / shares in Units, $ in Thousands				3 Months Ended	6 Months Ended
	Jun. 09, 2016 $ / shares shares	Jun. 07, 2016 USD ($) $ / shares shares	Jun. 01, 2016	Jun. 30, 2016 USD ($)	Jun. 30, 2016 USD ($)	Jun. 30, 2015 USD ($)
Class of Stock [Line Items]
Reverse stock split, conversion ratio			0.1818
Proceeds from initial public offering, net of offering costs					$ 83,230	$ 0
Offering costs for initial public offering					13,370
Measurement period adjustments				$ 3,863	$ 2,332
IPO
Class of Stock [Line Items]
Issuance of membership interests, shares | shares		6,500,000
Offering price per share (usd per share) | $ / shares		$ 14.00
Proceeds from initial public offering, net of offering costs		$ 83,230
Offering costs for initial public offering		$ 13,370
Over allotment option
Class of Stock [Line Items]
Issuance of membership interests, shares | shares	400,000
Offering price per share (usd per share) | $ / shares	$ 14.00

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Description of Business and Basis of Presentation - Immaterial Revisions (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Reduction in sequencing and molecular analysis	$ (45)	$ 0	$ (45)	$ 0
Increase to net loss	(54,132)	(17,236)	(87,277)	(31,201)
Increase to comprehensive loss	(54,042)	(17,309)	(86,884)	(31,203)
Increase to members' equity					$ 476,263
Reduction in cost of revenue	(435)	(91)	(674)	371
Reduction in other income	$ 77	(555)	$ (261)	(1,855)
Immaterial revision
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Reduction in sequencing and molecular analysis				490
Increase to net loss				490
Increase to comprehensive loss				490
Increase to members' equity		$ 490		490
Reduction in cost of revenue				685
Reduction in other income				$ 685

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Summary of Significant Accounting Policies (Details)	6 Months Ended
	Jun. 30, 2016 segment
Accounting Policies [Abstract]
Number of reportable segments	1

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Business Combinations and Investments - Narrative (Details) - USD ($) $ in Thousands							1 Months Ended		3 Months Ended	6 Months Ended
	Jan. 01, 2016	Nov. 30, 2015	Sep. 08, 2015	Jul. 01, 2015	Jun. 16, 2015	May 31, 2015	Jun. 30, 2016	Mar. 31, 2016	Jun. 30, 2016	Jun. 30, 2016	Dec. 31, 2015
Business Acquisition [Line Items]
Measurement period adjustments									$ 3,863	$ 2,332
Goodwill							$ 133,426		$ 133,426	$ 133,426	$ 56,718
Translational Research Management, LLC (TRM)
Business Acquisition [Line Items]
Proceeds from divestiture of investment			$ 250
NantOmics
Business Acquisition [Line Items]
Number of A-2 units issued to company (in shares)			610,928
Ownership percentage							14.30%		14.30%	14.30%
Variable Interest Entity, Not Primary Beneficiary
Business Acquisition [Line Items]
IOBS investment					$ 1,750
Number of shares acquired in IOBS					1,750,000
Percentage of ownership in variable interest entity					35.00%
Conversion of Series A Units to Common Stock
Business Acquisition [Line Items]
Number of shares from conversion of Series A units			44,778
NaviNet, Inc.
Business Acquisition [Line Items]
Percentage of voting interest acquired		100.00%
Cash paid in business acquisition		$ 83,529
Fair value of units transferred in acquisition		52,500
Contingent arrangements or earnouts, maximum		12,250
Working capital settlement payment (released) to/from escrow		455					$ 455
Assumed indebtedness repaid at closing of acquisition		23,324
Post-acquisition payout which represented the fair value of stock options	$ 7,394
Compensation expense post-acquisition										$ 4,814
Measurement period adjustments									$ 3,736	2,058
Measurement period adjustment, decrease to goodwill related to decrease in deferred revenue									(953)
Measurement period adjustment, increase to goodwill related to a deferred tax liability increase									4,234
Measurement period adjustment, increase to goodwill for working capital adjustments									455
Measurement period adjustment, decrease to goodwill representing the Company's right to reimbursement from seller										(1,678)
Funds held in escrow for settlement of net working capital		6,126
Goodwill		$ 76,434
NaviNet, Inc. | Series H units
Business Acquisition [Line Items]
Number of shares issued in acquisition	15,513,726	15,513,726
Fair value of units transferred in acquisition	$ 52,500
NantCloud Services, LLC
Business Acquisition [Line Items]
Percentage of voting interest acquired						100.00%
Cash paid in business acquisition						$ 7,227
Healthcare Solutions (HCS)
Business Acquisition [Line Items]
Cash paid in business acquisition					$ 50,556
Working capital settlement payment (released) to/from escrow				$ (2,494)				$ 2,494
Measurement period adjustments									$ 127	$ 274
Funds held in escrow for settlement of net working capital				7,500
Goodwill				$ 23,624
Healthcare Solutions (HCS) | Trademarks
Business Acquisition [Line Items]
Estimated lives of definite-lived intangible assets										5 years
Healthcare Solutions (HCS) | Customer relationships
Business Acquisition [Line Items]
Estimated lives of definite-lived intangible assets										5 years
Healthcare Solutions (HCS) | Backlog
Business Acquisition [Line Items]
Estimated lives of definite-lived intangible assets										5 years
Healthcare Solutions (HCS) | Developed technology
Business Acquisition [Line Items]
Estimated lives of definite-lived intangible assets										7 years
Translational Research Management, LLC (TRM)
Business Acquisition [Line Items]
Percentage of voting interest acquired			54.00%
Cash paid in business acquisition			$ 250
Translational Research Management, LLC (TRM) | Former Series A Unit Holders
Business Acquisition [Line Items]
Number of shares issued in acquisition			267,905

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Business Combinations and Investments - Summary of Purchase Consideration (Details) - USD ($) $ in Thousands			1 Months Ended
	Nov. 30, 2015	Jul. 01, 2015	Jun. 30, 2016	Mar. 31, 2016
NaviNet, Inc.
Business Acquisition [Line Items]
Cash paid to seller at closing	$ 74,823
Cash paid to option holders after closing	2,580
Cash paid to escrow account	6,126
Working capital settlement payment (released) to/from escrow	455		$ 455
Fair value of units transferred in acquisition	52,500
Total consideration	$ 136,484
Healthcare Solutions (HCS)
Business Acquisition [Line Items]
Cash paid to seller at closing		$ 43,056
Cash paid to escrow account		7,500
Working capital settlement payment (released) to/from escrow		(2,494)		$ 2,494
Total consideration		$ 48,062

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Business Combinations and Investments - Allocation of Total Consideration to Net Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015	Nov. 30, 2015	Jul. 01, 2015
Business Acquisition [Line Items]
Goodwill	$ 133,426	$ 56,718
NaviNet, Inc.
Business Acquisition [Line Items]
Cash and restricted cash			$ 4,804
Accounts receivable, net			9,996
Property, plant and equipment, net			7,953
Other assets, net			3,830
Accounts payable			(4,585)
Accrued expenses			(3,488)
Deferred revenue			(2,603)
Deferred tax liability			(19,533)
Assumed indebtedness			(23,324)
Goodwill			76,434
Total fair value of net assets acquired			136,484
NaviNet, Inc. | Trade names
Business Acquisition [Line Items]
Definite-lived intangible assets			3,000
NaviNet, Inc. | Developed technology
Business Acquisition [Line Items]
Definite-lived intangible assets			32,000
NaviNet, Inc. | Customer relationships
Business Acquisition [Line Items]
Definite-lived intangible assets			$ 52,000
Healthcare Solutions (HCS)
Business Acquisition [Line Items]
Accounts receivable, net				$ 13,119
Other liabilities, net				(2,205)
Deferred revenue				(16,076)
Goodwill				23,624
Total fair value of net assets acquired				48,062
Healthcare Solutions (HCS) | Trademarks
Business Acquisition [Line Items]
Definite-lived intangible assets				2,400
Healthcare Solutions (HCS) | Developed technology
Business Acquisition [Line Items]
Definite-lived intangible assets				14,400
Healthcare Solutions (HCS) | Customer relationships
Business Acquisition [Line Items]
Definite-lived intangible assets				8,900
Healthcare Solutions (HCS) | Backlog
Business Acquisition [Line Items]
Definite-lived intangible assets				$ 3,900

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Business Combinations and Investments - Pro Forma Financial Information (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2015
Business Combinations [Abstract]
Revenue	$ 33,768	$ 66,115
Net loss	$ (22,461)	$ (41,317)

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Accounts Receivable, net (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Receivables [Abstract]
Outstanding and unpaid invoices excluded from accounts receivable and deferred revenue	$ 8,953	$ 12,643
Allowance for doubtful accounts	$ 1,333	$ 956

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Inventories, net (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Inventory Disclosure [Abstract]
Finished goods	$ 1,946	$ 2,005
Raw Materials	396	141
Inventories, net	$ 2,342	$ 2,146

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Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid expenses	$ 6,692	$ 2,161
Restricted cash	100	0
Deferred offering costs	0	3,902
Escrow receivable	1,678	2,494
Other current assets	238	150
Prepaid expenses and other current assets	8,708	$ 8,707
Non-current restricted cash	$ 250

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Property, Plant and Equipment, net (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 48,481		$ 48,481		$ 20,550
Less: accumulated depreciation and amortization	(22,068)		(22,068)		(6,651)
Property, plant, and equipment, net	26,413		26,413		13,899
Depreciation expense	1,956	$ 853	3,669	$ 1,663
Computer equipment and software
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	27,281		27,281		9,865
Furniture and equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	8,216		8,216		6,772
Leasehold and building improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	3,285		3,285		1,433
Internal use software
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	7,170		7,170		1,018
Construction in progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 2,529		$ 2,529		$ 1,462

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Intangible Assets - Schedule of Definite-Lived Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 174,530	$ 87,530
Accumulated amortization	(44,365)	(32,559)
Intangible assets, net	130,165	54,971
Customer Relationships
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	65,200	13,200
Accumulated amortization	(4,693)	(1,680)
Intangible assets, net	60,507	11,520
Developed Technologies
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	98,930	66,930
Accumulated amortization	(37,879)	(30,326)
Intangible assets, net	61,051	36,604
Software License
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	5,000	5,000
Accumulated amortization	(938)	(313)
Intangible assets, net	4,062	4,687
Intellectual Property
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	2,400	2,400
Accumulated amortization	(480)	(240)
Intangible assets, net	1,920	2,160
Trade Name
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	3,000	0
Accumulated amortization	(375)	0
Intangible assets, net	$ 2,625	$ 0

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Intangible Assets - Narrative (Details) - USD ($)		3 Months Ended		6 Months Ended
	Sep. 29, 2015	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Finite-Lived Intangible Assets [Line Items]
Amortization expense		$ 5,710,000	$ 2,235,000	$ 11,806,000	$ 4,579,000
NaviNet, Inc.
Finite-Lived Intangible Assets [Line Items]
Definite-lived intangible assets related to acquisition				$ 87,000,000
Licensing agreement
Finite-Lived Intangible Assets [Line Items]
License fee	$ 5,000,000
Annual royalty expense for first four years on license agreement	$ 750,000
Number of years minimum royalties to be paid on license agreement	4 years
Maximum period royalties paid on license agreement	7 years
Licensing agreement | Maximum
Finite-Lived Intangible Assets [Line Items]
Aggregate royalties for license agreement	$ 5,000,000

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Intangible Assets - Schedule of Future Amortization of Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2016	$ 11,039
2017	19,078
2018	18,478
2019	18,166
2020	14,958
Thereafter	48,446
Intangible assets, net	$ 130,165	$ 54,971

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Goodwill - Goodwill Activity (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2016
Goodwill [Roll Forward]
Goodwill, beginning balance		$ 63,668
Accumulated impairment losses, beginning balance		(6,950)
Net balance, beginning balance		56,718
Acquisitions (See Note 3)		74,376
Measurement period adjustments (See Note 3)	$ 3,863	2,332
Net activity during the period		76,708
Goodwill, ending balance	140,376	140,376
Accumulated impairment losses, ending balance	(6,950)	(6,950)
Net balance, ending balance	$ 133,426	$ 133,426

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Goodwill - Narrative (Details) - USD ($)			3 Months Ended	6 Months Ended	12 Months Ended
	Jan. 01, 2016	Jul. 01, 2015	Jun. 30, 2016	Jun. 30, 2016	Dec. 31, 2015
Goodwill [Line Items]
Goodwill added during period				$ 74,376,000
Measurement period adjustments			$ 3,863,000	2,332,000
Impairment charges				0	$ 0
NaviNet, Inc.
Goodwill [Line Items]
Goodwill added during period	$ 76,434,000
Measurement period adjustments			3,736,000	2,058,000
Healthcare Solutions (HCS)
Goodwill [Line Items]
Goodwill added during period		$ 23,624,000
Measurement period adjustments			$ 127,000	$ 274,000

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Equity Method Investments - Narrative (Details) - USD ($) $ in Thousands			3 Months Ended		6 Months Ended
	Sep. 08, 2015	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Schedule of Equity Method Investments [Line Items]
Investments in unconsolidated related parties					$ 0	$ 150,816
Loss on equity method investments			$ 2,375	$ 145	$ 5,289	145
NantOmics
Schedule of Equity Method Investments [Line Items]
Number of A-2 units purchased (in shares)		168,463,611
Investments in unconsolidated related parties		$ 250,774
Number of A-2 units issued to company (in shares)	610,928
Ownership percentage			14.30%		14.30%
Difference between the carrying value and equity, intangible assets		28,195		28,195		28,195
Difference between the carrying value and equity, goodwill		14,382		$ 14,382		$ 14,382
Loss on equity method investments		$ 145	$ 2,375		$ 5,289

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Equity Method Investments - Summarized Financial Information (Details) - NantOmics $ in Thousands	6 Months Ended
	Mar. 31, 2016 USD ($)
Schedule of Equity Method Investments [Line Items]
Sales	$ 1,935
Gross loss	(1,738)
Loss from operations	(16,049)
Net loss	(14,703)
Net loss attributable to NantOmics	$ (13,561)

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Variable Interest Entities (Details) - Variable Interest Entity, Not Primary Beneficiary $ in Thousands		6 Months Ended
	Jun. 16, 2015 USD ($)	Jun. 30, 2016 director
Variable Interest Entity [Line Items]
IOBS investment | $	$ 1,750
Percentage of ownership in variable interest entity	35.00%
Number of directors NantHealth has right to elect		2
Number of directors on IOBS board		5

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Fair Value Measurements (Details) - Recurring basis - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	$ 84,119	$ 630
Marketable securities	71	1,243
Quoted price in active markets for identical assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	84,119	630
Marketable securities	71	1,243
Significant other observable inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Marketable securities	0	0
Significant unobservable inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Marketable securities	$ 0	$ 0

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Commitments and Contingencies - Lease Arrangements (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Operating Leased Assets [Line Items]
Operating Leases, Rent Expense, Net	$ 1,130	$ 390	$ 2,240	$ 736
Minimum
Operating Leased Assets [Line Items]
Remaining lives of operating leases			1 year		1 year
Maximum
Operating Leased Assets [Line Items]
Remaining lives of operating leases			6 years		6 years

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Commitments and Contingencies - Future Minimum Rental Commitments (Details) $ in Thousands	Jun. 30, 2016 USD ($)
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2016	$ 2,262
2017	4,132
2018	2,139
2019	468
2020	271
Total minimum rental commitments	$ 9,272

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Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Tax Disclosure [Abstract]
Provision for (benefit from) income taxes	$ (14,211)	$ 0	$ (18,609)	$ 1
Effective tax rate	20.80%	0.00%	17.60%	0.00%
Unrecognized tax benefits increase		$ 154		$ 219

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Redeemable Series F Units / Common Stock - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands			1 Months Ended	3 Months Ended	5 Months Ended	6 Months Ended		12 Months Ended
	Jun. 01, 2016	Jun. 20, 2014	Jun. 20, 2016	Jun. 30, 2016	May 31, 2016	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Redeemable Noncontrolling Interest [Line Items]
Accretion to redemption value			$ 583	$ 2,333	$ 4,375	$ 4,958	$ 0	$ 16,042
Redeemable Series F Units
Redeemable Noncontrolling Interest [Line Items]
Number of units sold in private placement, units		53,580,996
Offering price per share (usd per share)		$ 2.7995
Aggregate amount received in private placement		$ 150,000
Private placement, interest payable, percent		7.00%
Number of shares as a result of conversion of units, shares	10,714,285

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Redeemable Series F Units / Common Stock - Schedule of Redeemable Series F Units (Details) - USD ($) $ in Thousands			1 Months Ended	3 Months Ended	5 Months Ended	6 Months Ended		12 Months Ended
	Jun. 20, 2016	Jun. 01, 2016	Jun. 20, 2016	Jun. 30, 2016	May 31, 2016	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Redeemable Noncontrolling Interest, Equity, Redemption Value [Roll Forward]
Accretion to redemption value			$ 583	$ 2,333	$ 4,375	$ 4,958	$ 0	$ 16,042
Redeemable common stock put right expiration						171,000	$ 0
Redeemable Series F Units
Redeemable Noncontrolling Interest, Equity, Redemption Value [Roll Forward]
Beginning balance, Redeemable Series F units and common stock			170,417		166,042	166,042
Accretion to redemption value					$ 4,375
LLC Conversion						(170,417)
Ending balance, Redeemable Series F units and common stock		$ 170,417						$ 166,042
Redeemable Common Stock
Redeemable Noncontrolling Interest, Equity, Redemption Value [Roll Forward]
Beginning balance, Redeemable Series F units and common stock			170,417
Accretion to redemption value			583
LLC Conversion						170,417
Redeemable common stock put right expiration	$ (171,000)
Ending balance, Redeemable Series F units and common stock	171,000	170,417	$ 171,000
Common Stock Including Additional Paid in Capital
Redeemable Noncontrolling Interest, Equity, Redemption Value [Roll Forward]
LLC Conversion		$ 525,388
Redeemable common stock put right expiration	$ 171,000
Ending balance, Redeemable Series F units and common stock				$ 171,000		$ 171,000

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Stockholders’ Equity - Narrative (Details) $ / shares in Units, $ in Thousands							6 Months Ended
	Jun. 09, 2016 $ / shares shares	Jun. 07, 2016 USD ($) $ / shares shares	Jun. 01, 2016 USD ($) shares	Jan. 01, 2016 USD ($) $ / shares shares	Nov. 30, 2015 USD ($) shares	Jun. 29, 2015 USD ($) $ / shares shares	Jun. 30, 2016 USD ($) $ / shares shares	Jun. 30, 2015 USD ($)
Class of Stock [Line Items]
Proceeds from initial public offering, net of offering costs | $							$ 83,230	$ 0
Offering costs for initial public offering | $							13,370
Amount of principal and interest under promissory note converted to shares | $							$ 40,590	$ 0
Reverse stock split, conversion ratio			0.1818
Common stock authorized (shares)							750,000,000
Common stock, par value (usd per share) | $ / shares							$ 0.0001
Preferred stock authorized (shares)							20,000,000
Preferred stock, par value (usd per share) | $ / shares							$ 0.0001
NaviNet, Inc.
Class of Stock [Line Items]
Fair value of units transferred in acquisition | $					$ 52,500
Series H units
Class of Stock [Line Items]
Conversion of members' interests, shares			3,749,998
Series H units | NaviNet, Inc.
Class of Stock [Line Items]
Number of shares issued in acquisition				15,513,726	15,513,726
Acquisition, purchase price, (usd per share) | $ / shares				$ 3.3841
Fair value of units transferred in acquisition | $				$ 52,500
Series G units | Allscripts Healthcare Solutions, Inc.
Class of Stock [Line Items]
Offering price per share (usd per share) | $ / shares						$ 3.3841
Conversion of members' interests, shares						14,285,714
Number of units sold in private placement, units						59,099,908
Aggregate amount received in private placement | $						$ 200,000
Common stock
Class of Stock [Line Items]
Issuance of membership interests, shares							6,900,000
Conversion of members' interests, shares			99,651,444				99,651,444
Conversion of members' interests | $							$ 10
Common Stock Including Additional Paid in Capital
Class of Stock [Line Items]
Conversion of members' interests | $			$ 525,388
Equity Method Investee | Promissory Notes With NantOmics
Class of Stock [Line Items]
Amount of principal and interest under promissory note converted to shares | $			$ 40,590
Number of shares related party promissory note converted			2,899,297
IPO
Class of Stock [Line Items]
Issuance of membership interests, shares		6,500,000
Offering price per share (usd per share) | $ / shares		$ 14.00
Proceeds from initial public offering, net of offering costs | $		$ 83,230
Offering costs for initial public offering | $		$ 13,370
Over allotment option
Class of Stock [Line Items]
Issuance of membership interests, shares	400,000
Offering price per share (usd per share) | $ / shares	$ 14.00
Restricted stock
Class of Stock [Line Items]
Conversion of members' interests, shares			10,462

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Stockholders’ Equity - Units Converted to Shares (Details)	Jun. 01, 2016 shares
Capital Unit [Line Items]
Number of member units converted to common shares, units	556,741,897
Former Series A Unit Holders
Capital Unit [Line Items]
Number of member units converted to common shares, units	420,255,676
Former Series B Unit Holders
Capital Unit [Line Items]
Number of member units converted to common shares, units	19,109,603
Former Series C Unit Holders
Capital Unit [Line Items]
Number of member units converted to common shares, units	3,470,254
Former Series D Unit Holders
Capital Unit [Line Items]
Number of member units converted to common shares, units	3,572,066
Former Series E Unit Holders
Capital Unit [Line Items]
Number of member units converted to common shares, units	35,720,664
Former Series G Unit Holders
Capital Unit [Line Items]
Number of member units converted to common shares, units	59,099,908
Former Series H Unit Holders
Capital Unit [Line Items]
Number of member units converted to common shares, units	15,513,726

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Stock Based Compensation - Expense (Details) - Phantom units - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 44,058	$ 0	$ 44,058	$ 0
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	7,032	0	7,032	0
Selling, general and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	23,577	0	23,577	0
Research and development
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 13,449	$ 0	$ 13,449	$ 0

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Stock Based Compensation - Activity of Phantom Units (Details) - Phantom units - $ / shares	3 Months Ended
	Jun. 30, 2016	Mar. 31, 2016
Number of Units
Unvested phantom units outstanding, beginning balance (in units)	3,314,927	3,653,008
Granted (in units)	2,985,340	108,995
Vested (in units)	(1,612,421)	0
Forfeited (in units)	(126,591)	(447,076)
Unvested phantom units outstanding, ending balance (in units)	4,561,255	3,314,927
Weighted Average Grant date value per phantom unit
Unvested phantom units outstanding, beginning balance (usd per unit)	$ 15.74	$ 15.78
Granted (usd per unit)	14.58	14.45
Vested (usd per unit)	15.21	0
Forfeited (usd per unit)	15.40	15.80
Unvested phantom units outstanding, ending balance (usd per unit)	$ 15.18	$ 15.74

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Stock Based Compensation - Narrative (Details) $ in Thousands			3 Months Ended		6 Months Ended
	Jul. 25, 2016 shares	Jun. 01, 2016 shares	Jun. 30, 2016 USD ($) shares	Jun. 30, 2015 USD ($)	Jun. 30, 2016 USD ($) shares	Jun. 30, 2015 USD ($)	Dec. 31, 2015 shares	Mar. 31, 2015 shares	Dec. 03, 2013 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Reverse stock split, conversion ratio		0.1818
Stock compensation plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares as a result of conversion of units, shares		28,973
Stock-based compensation expense | $			$ (366)	$ 125	$ (268)	$ 1,031
Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares as a result of conversion of units, shares		10,462
Stock-based compensation expense expected to be recognized | $			348		$ 348
Period for recognition of compensation cost not yet recognized					2 years 3 months 18 days
Phantom units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense | $			44,058	$ 0	$ 44,058	$ 0
Stock-based compensation expense expected to be recognized | $			46,675		$ 46,675
Period for recognition of compensation cost not yet recognized					3 years 6 months
Units granted to employees of related companies for providing services					1,043,450
Phantom units | Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense expected to be recognized | $			40,717		$ 40,717
Period for recognition of compensation cost not yet recognized					3 years 4 months 24 days
Phantom units | Nonemployee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense expected to be recognized | $			$ 5,958		$ 5,958
Period for recognition of compensation cost not yet recognized					3 years 9 months 18 days
Series C units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Units outstanding		3,470,254					3,470,254
Profits Interests Plan | Series C units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate units authorized for issuance									63,750,000
Phantom Unit Plan | Phantom units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate units authorized for issuance								11,590,909
Number of shares available for grant			6,173,676		6,173,676
Phantom Unit Plan | Phantom units | Subsequent Event
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock issued for vested phantom units	1,056,689
The 2016 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate units authorized for issuance			6,000,000		6,000,000
The 2016 Equity Incentive Plan | Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares as a result of conversion of units, shares		10,462

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Net Loss Per Share - Reconciliations of the Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended	3 Months Ended		5 Months Ended	6 Months Ended		12 Months Ended
		Jun. 20, 2016	Jun. 30, 2016	Jun. 30, 2015	May 31, 2016	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Loss per share numerator
Net loss			$ (54,132)	$ (17,236)		$ (87,277)	$ (31,201)
Accretion to redemption value of series F/redeemable common stock			(2,333)			(4,958)
Accretion to redemption value of Series F / redeemable common stock		$ 583	2,333		$ 4,375	4,958	0	$ 16,042
Net (loss)/income for basic/diluted loss per share			$ (56,465)	$ (17,236)		$ (92,235)	$ (31,201)
Class of Stock [Line Items]
Basic & Diluted net loss per share (usd per share)	[1]		$ (0.52)	$ (0.21)		$ (0.86)	$ (0.38)
Common Stock
Class of Stock [Line Items]
Weighted-average shares for basic net loss per share (shares)			104,072,198	82,406,012		101,846,445	82,014,695
Effect of dilutive securities (shares)			0	0		0	0
Weighted-average shares for dilutive net loss per share (shares)			104,072,198	82,406,012		101,846,445	82,014,695
Basic & Diluted net loss per share (usd per share)			$ (0.54)	$ (0.21)		$ (0.91)	$ (0.38)
Redeemable Common Stock
Class of Stock [Line Items]
Weighted-average shares for basic net loss per share (shares)			9,419,152			10,066,719
Effect of dilutive securities (shares)			0			0
Weighted-average shares for dilutive net loss per share (shares)			9,419,152			10,066,719
Basic & Diluted net loss per share (usd per share)			$ 0.25			$ 0.49

[1] The net loss per share and weighted-average shares outstanding have been computed to give effect to the LLC Conversion (See Note 16) that occurred June 1, 2016 prior to the Company’s IPO. In conjunction with the LLC Conversion, (a) all of the Company’s outstanding units automatically converted into shares of common stock, based on the relative rights of the Company's pre-IPO equityholders as set forth in the Company's limited liability company agreement and (b) the Company adopted and filed a certificate of incorporation with the Secretary of State of the state of Delaware and adopted bylaws. The Company adopted and filed an amendment to its certificate of incorporation with the Secretary of State of the state of Delaware to effect a 1-for-5.5 reverse stock split of its common stock on June 1, 2016. See Note 18 for the calculation of net loss per share for common stock and redeemable common stock for the three months and six months ended June 30, 2016.

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Net Loss Per Share - Narrative (Details)		3 Months Ended		6 Months Ended
	Jun. 01, 2016	Jun. 30, 2016 shares	Jun. 30, 2015 shares	Jun. 30, 2016 shares	Jun. 30, 2015 shares
Earnings Per Share [Abstract]
Reverse stock split, conversion ratio	0.1818
Common Stock
Class of Stock [Line Items]
Weighted-average shares for basic net loss per share (shares)		104,072,198	82,406,012	101,846,445	82,014,695
Common Stock | Phantom units
Class of Stock [Line Items]
Weighted-average shares for basic net loss per share (shares)		1,056,689		1,056,689

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Net Loss Per Share - Antidilutive Securities (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Phantom units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (shares)	4,561,255	3,719,091	4,561,255	3,719,091

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Related Party Transactions (Details) $ / shares in Units, $ in Thousands						1 Months Ended		3 Months Ended		5 Months Ended	6 Months Ended
	Jun. 01, 2016 USD ($) shares	Mar. 08, 2016 USD ($)	Jan. 22, 2016 USD ($)	Jan. 04, 2016 USD ($) $ / shares	Jun. 19, 2015 USD ($) term test	Jun. 20, 2016 USD ($)	Jan. 31, 2015 USD ($)	Jun. 30, 2016 USD ($)	Jun. 30, 2015 USD ($)	May 31, 2016 USD ($)	Jun. 30, 2016 USD ($)	Jun. 30, 2015 USD ($)	Dec. 31, 2015 USD ($)
Related Party Transaction [Line Items]
Related party receivables								$ 2,884			$ 2,884		$ 2,545
Related party payables								11,426			11,426		10,166
Amount university to pay in exchange for NantHealth providing sequencing services							$ 10,000
Deemed capital contribution from chairman and CEO						$ 790		1,180		$ 830	1,620
Deemed capital contribution from chairman and CEO (pre LLC conversion)									$ 490			$ 490
Other services cost of revenue								7,492	2,030		11,057	3,677
Related party promissory note								112,666			112,666		0
Amount of principal and interest under promissory note converted to shares											40,590	0
Reseller agreement
Related Party Transaction [Line Items]
Term of agreement with related party					5 years 6 months
Other services cost of revenue								708	294		972	294
Affiliated Entity | Shared services agreement
Related Party Transaction [Line Items]
Net selling, general, and administrative service expenses incurred related to services provided by related parties								3,157	3,050		5,721	5,266
Affiliated Entity | Research and development services
Related Party Transaction [Line Items]
Net expenses incurred related to services provided by related parties								0	$ 308		210	$ 663
Affiliated Entity | Receivable from Ziosoft KK related to sale of Qi Imaging
Related Party Transaction [Line Items]
Related party receivables								2,150			2,150		2,150
Affiliated Entity | Promissory Notes With NantCapital
Related Party Transaction [Line Items]
Related party promissory note				$ 112,666				115,421			115,421
Interest bearing on related promissory note				5.00%
Per share price of stock shares to repay debt (in usd per share) | $ / shares				$ 18.6126
Per share price of shares to settle debt (usd per share) | $ / shares				$ 1.484
Equity Method Investee | Reseller agreement
Related Party Transaction [Line Items]
Related party payables								$ 1,365			$ 1,365		$ 3,111
Number of renewals | term					3
Renewal term					3 years
Number of tests to qualify for first renewal option | test					300
Number of tests to qualify for second renewal option | test					570
Number of tests to qualify for third renewal option | test					760
Renewal option if threshold unmet, nonexclusive, number of years					3 years
Annual minimum fees, tier one					$ 2,000
Annual minimum fees, tier two					25,000
Annual minimum fees, tier three					$ 50,000
Equity Method Investee | Promissory Notes With NantOmics
Related Party Transaction [Line Items]
Related party promissory note			$ 20,000
Interest bearing on related promissory note			5.00%
Amount of principal and interest under promissory note converted to shares	$ 40,590
Additional advance on related party promissory note		$ 20,000
Number of shares related party promissory note converted | shares	2,899,297

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Subsequent Events (Details) - Phantom units - USD ($) $ in Thousands			3 Months Ended
	Aug. 09, 2016	Jul. 25, 2016	Jun. 30, 2016	Mar. 31, 2016
Subsequent Event [Line Items]
Vested phantom units (in units)			1,612,421	0
Phantom Unit Plan | Subsequent Event
Subsequent Event [Line Items]
Shares issued (in shares)		1,056,689
Phantom Unit Plan | Subsequent Event | United States
Subsequent Event [Line Items]
Shares issued (in shares)		1,056,689
Shares withheld for taxes (in shares)		538,794
Payment to cover withholding taxes		$ 6,259
Phantom Unit Plan | Subsequent Event | Non-US
Subsequent Event [Line Items]
Cash paid to settle	$ 235
Vested phantom units (in units)	16,818

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Label	Element	Value
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition	us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue	$ 42,846,000
Limited Liability Company (LLC) Members' Equity, Unit-based Compensation	us-gaap_LimitedLiabilityCompanyLLCMembersEquityUnitBasedCompensation	170,000
Additional Paid-in Capital [Member]
Equity, Deemed Capital Contributions	nh_EquityDeemedCapitalContributions	790,000
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition	us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue	42,846,000
Temporary Equity, Accretion to Redemption Value	us-gaap_TemporaryEquityAccretionToRedemptionValue	583,000
Member Units [Member]
Equity, Deemed Capital Contributions	nh_EquityDeemedCapitalContributions	830,000
Temporary Equity, Accretion to Redemption Value	us-gaap_TemporaryEquityAccretionToRedemptionValue	4,375,000
Limited Liability Company (LLC) Members' Equity, Unit-based Compensation	us-gaap_LimitedLiabilityCompanyLLCMembersEquityUnitBasedCompensation	$ 170,000