Discontinued Operations (Tables)

3 Months Ended

Mar. 31, 2021

Discontinued Operations and Disposal Groups [Abstract]

Schedule of discontinued operations

The following table summarizes the results of operations of the Company’s True Health business, which are included in loss from discontinued operations in the consolidated statements of operations for the three months ended March 31, 2021 and 2020.

	For the Three Months Ended March 31,
	2021		2020
Revenue
Platform and operations	38		240
Premiums	44,795		32,147
Total revenue	44,833		32,387
Expenses
Cost of revenue (exclusive of depreciation and amortization expenses presented separately below) (1)	5,885		3,295
Claims expenses	33,954		23,667
Selling, general and administrative expenses (2)	5,764		5,675
Depreciation and amortization expenses	160		160
Total operating expenses	45,763		32,797
Operating loss	(930)		(410)
Interest income	112		149
Interest expense	(4)		(4)
Other loss	(25)		—
Loss before income taxes and non-controlling interests	(847)		(265)
Benefit for income taxes	(326)		—
Net loss	$	(521)	$	(265)

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(1)Cost of revenue includes $2.8 million and $3.1 million of intercompany expenses between the Company and True Health that are recorded in income from continuing operations on the consolidated statements of operations related an existing services agreement for claims processing and other health plan administrative functions for the three months ended March 31, 2021 and 2020, respectively.

(2)Selling, general and administrative expenses includes $1.1 million and $3.1 million of intercompany expenses between the Company and True Health that are recorded in income from continuing operations on the consolidated statements of operations related an existing services agreement for claims processing and other health plan administrative functions for the three months ended March 31, 2021 and 2020, respectively.

Cash flows related to the True Health business during the three months ended March 31, 2021 and 2020 were as follows:

	For the Three Months Ended March 31,
	2021		2020
Cash flows provided by (used in) operating activities	$	5,002	$	2,745
Cash flows provided by (used in) investing activities	(2,494)		(721)

The following table summarizes the current and long-term assets and liabilities of the discontinued True Health business in the consolidated balance sheets at December 31, 2020:

	December 31, 2020
ASSETS
Current assets:
Cash and cash equivalents	$	21,488
Restricted cash and restricted investments	63
Accounts receivable, net	3,437
Prepaid expenses and other current assets	5,198
Investments, at amortized cost	3,728
Total current assets	33,914
Restricted cash and restricted investments	616
Investments, at amortized cost	10,919
Prepaid expenses and other noncurrent assets, net of allowances	59
Intangible assets, net	3,080
Goodwill	5,705
Total assets	$	54,293
LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)
Liabilities
Current liabilities:
Accounts payable (1)	93
Accrued liabilities	11,265
Accrued compensation and employee benefits	1,115
Deferred revenue	4,140
Reserve for claims and performance-based arrangements	9,858
Total current liabilities	26,471
Other long-term liabilities	128
Deferred tax liabilities, net	49
Total liabilities	$	26,648

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(1)Accounts payable exclude $1.5 million between the Company and True Health related an existing services agreement for claims processing and other health plan administrative functions as of December 31, 2020.