Delaware |
8099 |
83-3838045 | ||
(State or Other Jurisdiction of Incorporation or Organization) |
(Primary Standard Industrial Classification Code Number) |
(I.R.S. Employer Identification No.) |
Jeffrey C. Selman, Esq. Brad Rock , Esq.DLA Piper LLP (US) 555 Mission Street, Suite 2400 San Francisco, CA 94105 (415) 615-6095 |
Ivan K. Blumenthal, Esq. Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. 666 Third Avenue New York, New York 10017 (212) 935-3000 |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer |
☒ | Smaller reporting company | ||||
Emerging growth company |
| ||||
Title of Each Class of Securities to be Registered |
Proposed Maximum Aggregate Offering Price |
Amount of Registration Fee | ||
Common Stock, $0.0001 par value per share |
$57,500,000(2) |
$6,273.25(3) | ||
Total |
$57,500,000 |
$6,273.25 | ||
| ||||
|
(1) |
Estimated solely for the purpose of calculating the registration fee pursuant to Rule 457(o) under the Securities Act of 1933, as amended. |
(2) |
Includes the aggregate offering price of shares that the underwriters have the option to purchase additional shares. |
(3) |
Previously paid. |
Price to Public |
Underwriting Discounts(1) |
Proceeds to Us |
||||||||||
Per Share |
$ |
$ |
$ |
|||||||||
Total |
$ |
$ |
$ |
(1) |
We have also agreed to reimburse the underwriters for certain of their expenses in connection with this offering. See “Underwriting.” |
Oppenheimer & Co. |
Lake Street |
Northland Capital Markets |
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F-1 |
• | our financial and business performance, including financial projections and business metrics and any underlying assumptions thereunder; |
• | changes in our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects and plans; |
• | our product development timeline and expected start of production; |
• | the implementation, market acceptance and success of our business model; |
• | our ability to scale in a cost-effective manner; |
• | developments and projections relating to our competitors and industry; |
• | the impact of health epidemics, including the COVID-19 pandemic, on our business and the actions the we may take in response thereto; |
• | our expectations regarding its ability to obtain and maintain intellectual property protection and not infringe on the rights of others; |
• | expectations regarding the time during which we will be an emerging growth company under the JOBS Act; |
• | our future capital requirements and sources and uses of cash; |
• | our ability to obtain funding for our operations; |
• | our business, expansion plans and opportunities; and |
• | the outcome of any known and unknown litigation and regulatory proceedings. |
• | Integrated Care Management Thrasys |
automates workflows across health plans, health systems, government agencies and community organizations. Clinical and community-based care teams use the platform to coordinate programs to address medical, behavioral health and social factors that affect the health of individuals and populations. |
• | Global Telehealth Glocal |
• | Digital Pharmacy MedQuest Pharmacy Innovations Group |
• | Tech-Enabled Behavioral Health TTC Healthcare BHS |
• | Implement Executed/Signed Contracts |
Health, resulting in approximately $6,000,000 in annualized bookings. Our Integrated Care Management business, which signs initial multi-year contract terms with sticky recurring revenue and annual renewals, has won and will implement $8,000,000 in new and expansion contracted revenue in 2021. |
• | Drive New Bookings |
• | Explore Synergistic Opportunities with Existing Clients |
• | Product, Service and Partner Expansion Medical Horizons |
• | Strategic Acquisition |
• | An Integrated Global Digital Health Platform Addressing Critical Market Needs |
• | Expansive Reach across Domestic and International Markets |
• | A Diverse Management Team of Industry Leaders |
• | Our limited operating history as a combined company makes it difficult to evaluate our current business and future prospects; |
• | The impact of health epidemics, including the COVID-19 pandemic, on our business, financial condition, growth and the actions we may take in response thereto; |
• | The high degree of uncertainty of the level of demand for and market utilization of our solutions; |
• | Substantial regulation and the potential for unfavorable changes to, or failure by us to comply with, these regulations, which could substantially harm our business and operating results; |
• | Our dependency upon third-party service providers for certain technologies; |
• | Increases in costs, disruption of supply or shortage of materials, which could harm our business; |
• | Developments and projections relating to our competitors and industry; |
• | The unavailability, reduction or elimination of government and economic incentives, which could have a material adverse effect on our business, prospects, financial condition and operating results; |
• | Our management team’s limited experience managing a public company; |
• | The possibility of our need to defend ourselves against fines, penalties and injunctions if we are determined to be promoting products for unapproved uses; |
• | Concentration of ownership among our existing executive officers, directors and their respective affiliates, which may prevent new investors from influencing significant corporate decisions; |
• | The lack of assurance that we will be able to comply with the continued listing standards of the NYSE; |
• | If we do not meet the expectations of investors or securities analysts, the market price of the Company’s securities may decline; and |
• | Our significant increased expenses and administrative burdens as a public company, which could have an adverse effect on its business, financial condition and results of operations. |
Shares offered by us |
12,594,458 shares of Common Stock at an assumed offering price of $3.97 per share, which is the last reported sale price of our common stock on September 23, 2021. |
Option to purchase additional shares |
We have granted to the underwriters the option, exercisable for a period of 30 days from the date of this prospectus, to purchase up to 1,889,168 additional shares of Common Stock. |
Shares outstanding after this offering(1)(2) |
130,199,068 shares of Common Stock (132,088,236 shares of Common Stock if the underwriters exercise their option to purchase additional shares in full), assuming the sale of our common stock at an assumed public offering price of $3.97 per share, which is the last reported sale price of our common stock on September 23, 2021. |
Use of proceeds |
We estimate that the net proceeds to us from this offering will be approximately $ million, based on an assumed offering price of $3.97 per share, or approximately $ million if the underwriters exercise their option to purchase additional shares in full, after deducting underwriting discounts and commissions. |
We intend to use the net proceeds for working capital and general corporate purposes, although we do not currently have any specific or preliminary plans with respect to the use of proceeds for such purposes. See “ Use of Proceeds |
Dividend policy |
We do not expect to pay any dividends on our Common Stock in the foreseeable future. See “ Dividend Policy |
Risk factors |
You should carefully read and consider the information set forth under the heading “ Risk Factors |
NYSE ticker symbol |
Our Common Stock is listed on the NYSE under the symbol “UPH”. |
(1) | The number of shares of Common Stock that will be outstanding after this offering is based on 117,604,610 shares of Common Stock outstanding as of June 30, 2021, assumes the sale and issuance by us of 12,594,458 shares of Common Stock and excludes: |
• | 538,616 shares of Common Stock issuable upon the vesting of outstanding restricted stock units; |
• | 16,420,813 shares of Common Stock that are reserved for issuance under the GigCapital2, Inc. 2021 Equity Incentive Plan (the “ 2021 Equity Incentive Plan |
• | 1,711,613 shares of Common Stock that are reserved for issuance under the Cloudbreak Health, LLC 2015 Unit Incentive Plan (the “ 2015 Equity Incentive Plan |
• | 15,023,475 shares of Common Stock to be issued upon conversion of the Convertible Notes; and |
• | 18,117,494 shares of Common Stock issuable upon exercise of the outstanding warrants at an exercise price of $11.50 per share. |
(2) | Unless otherwise indicated, all information contained in this prospectus assumes no exercise by the underwriters of their option to purchase additional shares and no exercise of any other options or warrants. |
• | Our limited operating history as a combined company makes it difficult to evaluate our current business and future prospects; |
• | The impact of health epidemics, including the COVID-19 pandemic, on our business, financial condition, growth and the actions we may take in response thereto; |
• | The high degree of uncertainty of the level of demand for and market utilization of our solutions; |
• | Substantial regulation and the potential for unfavorable changes to, or failure by us to comply with, these regulations, which could substantially harm our business and operating results; |
• | Our dependency upon third-party service providers for certain technologies; |
• | Increases in costs, disruption of supply or shortage of materials, which could harm our business; |
• | Developments and projections relating to our competitors and industry; |
• | The unavailability, reduction or elimination of government and economic incentives, which could have a material adverse effect on our business, prospects, financial condition and operating results; |
• | Our management team’s limited experience managing a public company; |
• | The possibility of our need to defend ourselves against fines, penalties and injunctions if we are determined to be promoting products for unapproved uses; |
• | Concentration of ownership among our existing executive officers, directors and their respective affiliates, which may prevent new investors from influencing significant corporate decisions; |
• | The lack of assurance that we will be able to comply with the continued listing standards of the NYSE; |
• | If we do not meet the expectations of investors or securities analysts, the market price of the Company’s securities may decline; and |
• | Our significant increased expenses and administrative burdens as a public company, which could have an adverse effect on its business, financial condition and results of operations. |
• | the popularity, pricing and timing of digital health consultation services being launched and distributed by us and our competitors; |
• | general economic conditions, particularly economic conditions adversely affecting discretionary and reimbursable healthcare spending; |
• | federal and state policy initiatives impacting the need for and pricing of digital health services; |
• | changes in customer needs and preferences; |
• | the development of specialty care practice standards or industry norms applicable to digital health consultation services; |
• | the availability of other forms of medical and digital health assistance; |
• | lack of additional evidence or peer-reviewed publication of clinical evidence supporting the safety, ease-of-use, |
• | perceived risks associated with the use of our solutions or similar products or technologies generally; and |
• | critical reviews and public tastes and preferences, all of which change rapidly and cannot be predicted. |
• | accessibility, ease of use and convenience; |
• | price and affordability; |
• | personalization; |
• | brand recognition; |
• | long-term outcomes; |
• | breadth and efficacy of offerings; |
• | market penetration; |
• | marketing resources and effectiveness; |
• | partnerships and alliances; |
• | relationships with providers, suppliers and partners; and |
• | regulatory compliance recourses. |
• | the addition or loss of large customers, including through acquisitions or consolidations of such customers; |
• | seasonal and other variations in the timing of our sales and implementation cycles, especially in the case of our large customers; |
• | travel restrictions, shelter in place orders and other social distancing measures implemented to combat the COVID-19 pandemic, and their respective impact on economic, industry and market conditions, customer spending budgets and our ability to conduct business; |
• | the timing of recognition of revenue, including possible delays in the recognition of revenue due to unpredictable implementation timelines; |
• | the timing and success of introductions of new products and services by us or our competitors or any other change in the competitive dynamics of our industry, including consolidation among competitors, hospital and healthcare system customers or strategic partners; |
• | the amount of operating expenses and timing related to the maintenance and expansion of our business, operations and infrastructure; |
• | our ability to effectively manage the size and composition of our proprietary network of healthcare professionals relative to the level of demand for services from our customers; |
• | customer renewal rates and the timing and terms of such renewals; |
• | technical difficulties or interruptions in our services; |
• | breaches of information security or privacy; |
• | our ability to hire and retain qualified personnel; |
• | changes in the structure of healthcare provider and payment systems; |
• | changes in the legislative or regulatory environment, including with respect to healthcare, privacy or data protection, or enforcement by government regulators, including fines, orders or consent decrees; |
• | the cost and potential outcomes of ongoing or future regulatory investigations or examinations, or of future litigation; |
• | political, economic and social instability, including terrorist activities and health epidemics (including the COVID-19 pandemic), and any disruption these events may cause to the global economy; and |
• | changes in business or macroeconomic conditions. |
• | government regulations or private initiatives that affect the manner in which healthcare providers interact with patients, payors or other healthcare industry participants, including changes in pricing or means of delivery of healthcare products and services; |
• | consolidation of healthcare industry participants; |
• | federal amendments to, lack of enforcement or development of applicable regulations for, or repeal of the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act of 2010 (as amended, the “ ACA |
• | reductions in government funding for healthcare; and |
• | adverse changes in business or economic conditions affecting healthcare payors, providers or other healthcare industry participants. |
• | management’s lack of experience in acquiring and integrating business; |
• | inability to integrate or benefit from acquired technologies or services in a profitable manner; |
• | unanticipated costs or liabilities, including legal liabilities, associated with the acquisition; |
• | entry into new markets and locations in which we have little operating experience or experience with government rules, regulations and restrictions; |
• | difficulty integrating the accounting systems, operations and personnel of the acquired business; |
• | difficulties and additional expenses associated with supporting legacy products and hosting infrastructure of the acquired business; |
• | difficulty converting the customers of the acquired business onto our platform and contract terms, including disparities in the revenue, licensing, support or professional services model of the acquired company; |
• | diversion of management’s attention from other business concerns; |
• | adverse effects to our existing business relationships with business partners and customers as a result of the acquisition; |
• | the potential loss of key employees or contractors; |
• | use of resources that are needed in other parts of our business; and |
• | use of substantial portions of our available cash to consummate the acquisition. |
• | delaying, deferring or preventing a change of control of us; |
• | impeding a merger, consolidation, takeover or other business combination involving us; or |
• | discouraging a potential acquirer from making a tender offer or otherwise attempting to obtain control of us. |
• | the federal physician self-referral law, commonly referred to as the Stark Law, that, subject to limited exceptions, prohibits physicians from referring Medicare patients to an entity for the provision of certain “designated health services” if the physician or a member of such physician’s immediate family has a direct or indirect financial relationship (including an ownership interest or a compensation arrangement) with the entity, and prohibits the entity from billing Medicare for such designated health services; |
• | the federal Anti-Kickback Statute, which is an intent-based federal criminal statute that prohibits the knowing and willful offer, payment, provision, solicitation or receipt of any remuneration, directly or indirectly, in cash or in kind, for referring an individual, in return for ordering, leasing, purchasing or recommending or arranging for or to induce the referral of an individual or the ordering, purchasing or |
leasing of items or services covered, in whole or in part, by any federal healthcare program, such as Medicare and Medicaid. A person or entity does not need to have actual knowledge of the statute or specific intent to violate it to have committed a violation. In addition, the government may assert that a claim including items or services resulting from a violation of the federal Anti-Kickback Statute constitutes a false or fraudulent claim for purposes of the federal False Claims Act; |
• | the criminal healthcare fraud provisions of the federal HIPAA, as amended by the Health Information Technology for Economic and Clinical Health Act (“ HITECH |
• | the federal False Claims Act that imposes civil liability, including through qui tam |
• | the federal criminal statute on false statements relating to health care matters, which prohibits knowingly and willfully falsifying, concealing or covering up a material fact or making any materially false, fictitious, or fraudulent statements or representations in connection with the delivery of or payment for health care benefits, items or services; |
• | The Civil Monetary Penalties Law authorizes the imposition of civil monetary penalties, assessments and exclusion against an individual or entity based on a variety of prohibited conduct, including, but not limited to: |
• | presenting, or causing to be presented, claims for payment to Medicare, Medicaid or other third-party payors that the individual or entity knows or should know are for an item or service that was not provided as claimed or is false or fraudulent; |
• | offering remuneration to a Medicare or Medicaid beneficiary that the individual or entity knows or should know is likely to influence the beneficiary to order or receive health care items or services from a particular provider or supplier; |
• | employing or contracting with an entity or individual excluded from participation in the federal health care programs; |
• | violating the federal Anti-Kickback Statute; |
• | making, using or causing to be made or used a false record or statement material to a false or fraudulent claim for payment for items and services furnished under a federal health care program; |
• | making, using or causing to be made any false statement, omission or misrepresentation of a material fact in any application, bid or contract to participate or enroll as a provider of services or a supplier under a federal health care program; and |
• | failing to timely report and return an overpayment owed to the federal government; |
• | substantial civil monetary penalties may be imposed under the federal Civil Monetary Penalties Law and may vary depending on the underlying violation. In addition, an assessment of not more than three times the total amount claimed for each item or service may also apply and a violator may be subject to exclusion from federal and state health care programs; |
• | the federal Eliminating Kickbacks in Recovery Act of 2018 (“ EKRA Use-Disorder Prevention that Promotes Opioid Recovery and Treatment for Patients and Communities Act, was signed into law on Oct. 24, 2018. The EKRA provisions, similar to the federal Anti-Kickback Statute, |
makes it a felony for certain entities (including substance abuse treatment centers, clinical treatment facilities and clinical laboratories) to engage in remunerative arrangements that induce or reward individuals or entities for the referral of patients to such facilities, unless an exception applies. EKRA applies regardless of payor source, including for services reimbursed exclusively through commercial insurance or self-paying patients. Violations of EKRA can lead to fines of not more than $200,000 and imprisonment of not more than 10 years, or both, for each occurrence” 18 U.S.C. 220(a); |
• | reassignment of payment rules that prohibit certain types of billing and collection practices in connection with claims payable by the Medicare or Medicaid programs; |
• | similar state law provisions pertaining to anti-kickback, self-referral, fee-splitting, patient inducement and false claims issues, some of which may apply to items or services reimbursed by any payer, including patients and commercial insurers; |
• | state laws that prohibit general business corporations, such as us, from practicing medicine, controlling physicians’ medical decisions or engaging in some practices such as splitting fees with physicians; |
• | laws that regulate debt collection practices as applied to our debt collection practices; |
• | a provision of the Social Security Act that imposes criminal penalties on healthcare providers who fail to disclose or refund known overpayments; |
• | federal and state laws that prohibit providers from billing and receiving payment from Medicare and Medicaid for services unless the services are medically necessary, adequately and accurately documented and billed using codes that accurately reflect the type and level of services rendered; |
• | federal and state laws and policies related to healthcare providers, licensure, certification, accreditation and related to the Medicare and Medicaid programs enrollment; |
• | federal and state laws and policies related to the practice of pharmacy, pharmacy licensure, and the prescribing and dispensing of pharmaceuticals and controlled substances; |
• | federal and state laws and policies related to the provision of substance use disorder treatment and substance use disorder program and facility licensure and accreditation; and |
• | licensure, CLIA certification and accreditation of diagnostic laboratory services. |
• | licensure of health providers, certification of organizations and enrollment with government reimbursement programs; |
• | necessity and adequacy of medical care; |
• | relationships with physicians and other referral sources and referral recipients; |
• | billing and coding for services; |
• | properly handling overpayments; |
• | quality of medical equipment and services; |
• | qualifications of medical and support personnel; |
• | confidentiality, maintenance, data breach, identity theft and security issues associated with health-related and personal information and medical records; and |
• | communications with patients and consumers. |
• | uncertain legal and regulatory requirements applicable to digital health, technology services and solutions and prescription medication; |
• | multiple, conflicting and changing laws and regulations such as tax laws, privacy and data protection laws and regulations, export and import restrictions, employment laws, regulatory requirements and other governmental approvals, permits and licenses; |
• | our inability to replicate our domestic business structure consistently outside of the United States, especially as it relates to our contractual arrangement with affiliated professional entities; |
• | the need to localize and adapt our solutions for specific countries, including translation into foreign languages and associated expenses; |
• | potential loss of proprietary information due to misappropriation or laws that may be less protective of our intellectual property rights than U.S. laws or that may not be adequately enforced; |
• | requirements of foreign laws and other governmental controls, including compliance challenges related to the complexity of multiple, conflicting and changing governmental laws and regulations, including employment, healthcare, tax, privacy and data protection laws and regulations; |
• | data privacy laws that require that client data be stored and processed in a designated territory; |
• | new and different sources of competition and laws and business practices favoring local competitors; |
• | local business and cultural factors that differ from our normal standards and practices, including business practices that we are prohibited from engaging in by the U.S. Foreign Corrupt Practices Act of 1977 (the “ FCPA |
• | changes to economic sanctions laws and regulations; |
• | central bank and other restrictions on our ability to repatriate cash from international subsidiaries; |
• | adverse tax consequences; |
• | fluctuations in currency exchange rates, economic instability and inflationary conditions, which could make our solutions more expensive or increase our costs of doing business in certain countries; |
• | limitations on future growth or inability to maintain current levels of revenues from international sales if we do not invest sufficiently in our international operations; |
• | different pricing environments, longer sales cycles and longer accounts receivable payment cycles and collections issues; |
• | difficulties in staffing, managing and operating our international operations, including difficulties related to administering our stock plans in some foreign countries and increased financial accounting and reporting burdens and complexities; |
• | difficulties in coordinating the activities of our geographically dispersed and culturally diverse operations; |
• | natural disasters, political and economic instability, including wars, terrorism, social or political unrest, including civil unrest, protests, and other public demonstrations, outbreaks of disease, pandemics or epidemics, boycotts, curtailment of trade, and other market restrictions; and |
• | regulatory and compliance risks that relate to maintaining accurate information and control over activities subject to regulation under the FCPA, and comparable laws and regulations in other countries. |
• | cease offering or using technologies that incorporate the challenged intellectual property; |
• | make substantial payments for legal fees, settlement payments or other costs or damages; |
• | obtain a license, which may not be available on reasonable terms, to sell or use the relevant technology; or |
• | redesign technology to avoid infringement. |
• | changes in the valuation of our deferred tax assets and liabilities; |
• | expected timing and amount of the release of any tax valuation allowances; |
• | tax effects of stock-based compensation; |
• | costs related to intercompany restructurings; |
• | changes in tax laws, regulations or interpretations thereof; or |
• | lower than anticipated future earnings in jurisdictions where we have lower statutory tax rates and higher than anticipated future earnings in jurisdictions where we have higher statutory tax rates. |
• | a limited availability of market quotations for UpHealth’s securities; |
• | a determination that UpHealth Common Stock is a “penny stock” which will require brokers trading in UpHealth Common Stock to adhere to more stringent rules, possibly resulting in a reduced level of trading activity in the secondary trading market for shares of UpHealth Common Stock; |
• | a limited amount of analyst coverage; and |
• | a decreased ability to issue additional securities or obtain additional financing in the future. |
• | actual or anticipated fluctuations in the Company’s quarterly financial results or the quarterly financial results of companies perceived to be similar to the Company; |
• | changes in the market’s expectations about the Company’s operating results; |
• | success of competitors; |
• | the Company’s operating results failing to meet the expectation of securities analysts or investors in a particular period; |
• | changes in financial estimates and recommendations by securities analysts concerning the Company or the market in general; |
• | operating and stock price performance of other companies that investors deem comparable to the Company’s; |
• | the Company’s ability to market new and enhanced services and products on a timely basis; |
• | changes in laws and regulations affecting the Company’s business; |
• | commencement of, or involvement in, litigation involving the Company; |
• | changes in the Company’s capital structure, such as future issuances of securities or the incurrence of additional debt; |
• | the volume of shares of the Company’s securities available for public sale; |
• | any major change in the board or management; |
• | sales of substantial amounts of Common Stock by the Company’s directors, executive officers or significant stockholders or the perception that such sales could occur; and |
• | general economic and political conditions such as recessions, interest rates, fuel prices, international currency fluctuations and acts of war or terrorism. |
• | no cumulative voting in the election of directors, which limits the ability of minority stockholders to elect director candidates; |
• | a classified board of directors with three-year staggered terms, which could delay the ability of stockholders to change the membership of a majority of the Board; |
• | the right of our Board to elect a director to fill a vacancy created by the expansion of our Board or the resignation, death or removal of a director in certain circumstances, which prevents stockholders from being able to fill vacancies on our Board; |
• | a prohibition on stockholder action by written consent, which forces stockholder action to be taken at an annual or special meeting of our stockholders; and |
• | the requirement that a meeting of stockholders may only be called by members of our Board or the stockholders holding a majority of our shares, which may delay the ability of our stockholders to force consideration of a proposal or to take action, including the removal of directors. |
• | on an actual basis; and |
• | on an as adjusted basis to give effect to the issuance and sale of 12,594,458 shares of Common Stock in this offering (assuming a public offering price of $3.97 per share and no exercise of the underwriters’ option to purchase additional shares), after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us. |
As of June 30, 2021 |
||||||||
(in thousands, except per share data) |
Actual |
As Adjusted |
||||||
Cash, cash equivalents, and restricted cash: |
||||||||
Cash and cash equivalents (1) |
98,116 | 144,864 | ||||||
Restricted cash |
586 | 586 | ||||||
|
|
|
|
|||||
Total cash, cash equivalents, and restricted cash |
98,702 | 145,450 | ||||||
|
|
|
|
|||||
Debt (including current portion): |
||||||||
Convertible notes |
160,000 | 160,000 | ||||||
Unamortized original issue discount and derivative liability |
(69,110 | ) | (69,110 | ) | ||||
Other debt facilities (various maturities and interest rates) |
23,147 | 23,147 | ||||||
Paycheck Protection Program loans |
1,015 | 1,015 | ||||||
Provider Relief Funds |
735 | 735 | ||||||
Seller notes |
29,831 | 29,831 | ||||||
|
|
|
|
|||||
Total debt |
145,618 | 145,618 | ||||||
|
|
|
|
|||||
Stockholders’ equity: |
||||||||
Preferred stock, $0.0001 par value, 1,000 shares authorized, none issued or outstanding |
— | — | ||||||
Common stock, $0.0001 par value, 300,000 shares authorized, 117,605 issued or outstanding |
12 | 13 | ||||||
Additional paid-in capital |
620,455 | 667,202 | ||||||
Accumulated deficit |
(37,920 | ) | (37,920 | ) | ||||
Accumulated other comprehensive income |
(3,478 | ) | (3,478 | ) | ||||
|
|
|
|
|||||
Total stockholders’ equity |
579,069 | 625,817 | ||||||
Noncontrolling interests |
15,048 | 15,048 | ||||||
|
|
|
|
|||||
Total stockholders’ equity |
594,117 | 640,865 | ||||||
|
|
|
|
|||||
Total capitalization |
739,735 | 786,483 | ||||||
|
|
|
|
• | 538,616 shares of Common Stock issuable upon the vesting of outstanding restricted stock units; |
• | 16,420,813 shares of Common Stock that are reserved for issuance under the 2021 Equity Incentive Plan; |
• | 1,711,613 shares of Common Stock that are reserved under the 2015 Unit Incentive Plan; |
• | 15,023,475 shares of Common Stock to be issued upon conversion of the Convertible Notes; and |
• | 18,117,494 shares of common stock issuable upon exercise of the outstanding warrants at an exercise price of $11.50 per share. |
Assumed public offering price per share |
$ | 3.97 | ||||||
Historical net tangible book value per share as of June 30, 2021 |
$ | (0.83 | ) | |||||
Increase in as adjusted net tangible book value per share attributable to this offering |
0.44 | |||||||
|
|
|||||||
As adjusted net tangible book value per share after this offering |
0.39 | |||||||
|
|
|||||||
Dilution per share to new investors participating in this offering |
$ | 4.36 | ||||||
|
|
• | 538,616 shares of Common Stock issuable upon the vesting of outstanding restricted stock units; |
• | 16,420,813 shares of Common Stock that are reserved for issuance under the 2021 Equity Incentive Plan; |
• | 1,711,613 shares of Common Stock that are reserved under the 2015 Unit Incentive Plan; |
• | 15,023,475 shares of Common Stock to be issued upon conversion of the Convertible Notes; and |
• | 18,117,494 shares of common stock issuable upon exercise of the outstanding warrants at an exercise price of $11.50 per share. |
• | accompanying notes to the unaudited pro forma condensed combined financial statements; |
• | unaudited historical financial statements of UpHealth as of and for the six months ended June 30, 2021; |
• | unaudited historical financial statements of the merger entities as of and for the six months ended June 30, 2021; and |
• | audited historical consolidated financial statements of the merger entities as of and for the year ended December 31, 2020 (year ended March 31, 2020 for Glocal). |
UpHealth, Inc. and Subsidiaries |
TTC Healthcare, Inc. and Subsidiaries |
Glocal Healthcare Systems Private Limited (India) and Subsidiaries |
Innovations Group, Inc. and Subsidiaries |
Cloudbreak Health, LLC and Subsidiaries |
Pro Forma |
|||||||||||||||||||||||||
In thousands, except per share amounts, unaudited |
Historical June 30, 2021 |
Historical January 1 through January 24, 2021 |
Historical January 1 through March 25, 2021 |
Historical January 1 through April 26, 2021 |
Historical January 1 through June 8, 2021 |
Transaction Accounting Adjustments |
Note |
Pro Forma Combined Company |
||||||||||||||||||||||
Revenue |
44,696 | 559 | 2,256 | 8,920 | 13,347 | — | 69,778 | |||||||||||||||||||||||
Cost of goods and services |
26,415 | 724 | 1,086 | 5,598 | 8,420 | — | 42,243 | |||||||||||||||||||||||
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|
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Gross margin |
18,281 | (165 | ) | 1,170 | 3,322 | 4,927 | — | 27,535 | ||||||||||||||||||||||
Operating expenses: |
||||||||||||||||||||||||||||||
Selling, general, and administrative |
14,832 | 696 | 162 | 6,847 | 5,820 | — | 28,357 | |||||||||||||||||||||||
Research and development |
2,631 | — | — | 58 | — | — | 2,689 | |||||||||||||||||||||||
Depreciation and amortization |
3,869 | 8 | 137 | 42 | 64 | 3,557 | 2(a) | 7,677 | ||||||||||||||||||||||
Acquisition-related |
35,340 | — | 480 | 227 | 272 | — | 36,319 | |||||||||||||||||||||||
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Total operating expenses |
56,672 | 704 | 779 | 7,174 | 6,156 | 3,557 | 75,042 | |||||||||||||||||||||||
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|
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|
|||||||||||||||||
Income (loss) from operations |
(38,391 | ) | (869 | ) | 391 | (3,852 | ) | (1,229 | ) | (3,557 | ) | (47,507 | ) | |||||||||||||||||
Other income (expense): |
||||||||||||||||||||||||||||||
Interest expense |
(5,579 | ) | (32 | ) | (573 | ) | (54 | ) | (2,403 | ) | — | (8,641 | ) | |||||||||||||||||
Gain on consolidation of equity method investment |
640 | — | — | — | — | — | 640 | |||||||||||||||||||||||
Gain on fair value of warrant liabilities |
1,074 | — | — | — | — | — | 1,074 | |||||||||||||||||||||||
Gain on extinguishment of debt |
151 | — | — | 1,174 | 2,698 | — | 4,023 | |||||||||||||||||||||||
Other income (expense), net, including interest income |
(222 | ) | — | — | (25 | ) | 386 | — | 139 | |||||||||||||||||||||
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Total other income (expense) |
(3,936 | ) | (32 | ) | (573 | ) | 1,095 | 681 | — | (2,765 | ) | |||||||||||||||||||
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Income (loss) before income taxes |
(42,327 | ) | (901 | ) | (182 | ) | (2,757 | ) | (548 | ) | (3,557 | ) | (50,272 | ) | ||||||||||||||||
Income tax benefit (expense) |
7,053 | 222 | (123 | ) | — | — | — | 7,152 | ||||||||||||||||||||||
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Income (loss) before equity in net earnings of unconsolidated entity |
(35,274 | ) | (679 | ) | (305 | ) | (2,757 | ) | (548 | ) | (3,557 | ) | (43,120 | ) | ||||||||||||||||
Loss from equity method investment |
(561 | ) | — | — | — | — | — | (561 | ) | |||||||||||||||||||||
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Net income (loss) |
(35,835 | ) | (679 | ) | (305 | ) | (2,757 | ) | (548 | ) | (3,557 | ) | (43,681 | ) | ||||||||||||||||
Net income (loss) attributable to noncontrolling interests |
(101 | ) | 7 | (8 | ) | 29 | — | — | (73 | ) | ||||||||||||||||||||
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Net income (loss) attributable to UpHealth, Inc. |
$ | (35,734 | ) | $ | (686 | ) | $ | (297 | ) | $ | (2,786 | ) | $ | (548 | ) | $ | (3,557 | ) | $ | (43,608 | ) | |||||||||
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Net income (loss) per share: |
||||||||||||||||||||||||||||||
Basic and diluted |
$ | (0.43 | ) | $ | (0.37 | ) | ||||||||||||||||||||||||
Weighted average common shares outstanding: |
||||||||||||||||||||||||||||||
Basic and diluted |
83,585 | 34,020 | 2(b) | 117,605 | ||||||||||||||||||||||||||
Dividends declared per share |
$ | — | $ | — |
UpHealth, Inc. and Subsidiaries |
Behavioral Services, LLC and Subsidiaries |
Thrasys, Inc. and Subsidiaries (accounting acquirer) |
TTC Healthcare, Inc. and Subsidiaries |
Glocal Healthcare Systems Private Limited (India) and Subsidiaries |
Innovations Group, Inc. and Subsidiaries |
Cloudbreak Health, LLC and Subsidiaries |
Pro Forma |
|||||||||||||||||||||||||||||||
In thousands, except per share amounts, unaudited |
Historical December 31, 2020 |
Historical January 1 through November 19, 2020 |
Historical January 1 through November 19, 2020 |
Historical December 31, 2020 |
Historical December 31, 2020 |
Historical December 31, 2020 |
Historical December 31, 2020 |
Transaction Accounting Adjustments |
Note |
Pro Forma Combined Company |
||||||||||||||||||||||||||||
Revenue |
5,396 | 11,842 | 13,505 | 19,367 | 9,983 | 28,335 | 28,089 | — | 116,517 | |||||||||||||||||||||||||||||
Cost of goods and services |
1,183 | 8,866 | 1,930 | 9,031 | 3,841 | 17,736 | 19,814 | — | 62,400 | |||||||||||||||||||||||||||||
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|
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Gross margin |
4,213 | 2,976 | 11,575 | 10,336 | 6,142 | 10,599 | 8,275 | — | 54,117 | |||||||||||||||||||||||||||||
Operating expenses: |
||||||||||||||||||||||||||||||||||||||
Selling, general, and administrative |
4,945 | 3,219 | 3,666 | 10,927 | 1,614 | 7,981 | 14,105 | — | 46,457 | |||||||||||||||||||||||||||||
Research and development |
874 | — | 6,989 | — | — | — | — | — | 7,863 | |||||||||||||||||||||||||||||
Depreciation and amortization |
321 | (435 | ) | (619 | ) | 121 | 439 | (6 | ) | (444 | ) | 13,844 | 3(a) | 13,220 | ||||||||||||||||||||||||
Acquisition-related |
— | — | — | — | — | — | — | 36,319 | 3(b) | 36,319 | ||||||||||||||||||||||||||||
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Total operating expenses |
6,140 | 2,784 | 10,035 | 11,048 | 2,053 | 7,975 | 13,660 | 50,163 | 103,859 | |||||||||||||||||||||||||||||
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Income (loss) from operations |
(1,927 | ) | 192 | 1,540 | (712 | ) | 4,089 | 2,624 | (5,385 | ) | (50,163 | ) | (49,742 | ) | ||||||||||||||||||||||||
Other income (expense): |
||||||||||||||||||||||||||||||||||||||
Interest expense |
(134 | ) | — | (297 | ) | (879 | ) | (2,252 | ) | (269 | ) | (6,638 | ) | — | (10,469 | ) | ||||||||||||||||||||||
Other income (expense), net, including interest income |
4 | — | 1 | 658 | 4,950 | (39 | ) | 485 | — | 6,059 | ||||||||||||||||||||||||||||
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Total other income (expense) |
(130 | ) | — | (296 | ) | (221 | ) | 2,698 | (308 | ) | (6,153 | ) | — | (4,410 | ) | |||||||||||||||||||||||
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Income (loss) before income taxes |
(2,057 | ) | 192 | 1,244 | (933 | ) | 6,787 | 2,316 | (11,538 | ) | (50,163 | ) | (54,152 | ) | ||||||||||||||||||||||||
Income tax benefit (expense) |
(50 | ) | — | — | 299 | — | — | — | — | 249 | ||||||||||||||||||||||||||||
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Income (loss) before equity in net earnings of unconsolidated entity |
(2,107 | ) | 192 | 1,244 | (634 | ) | 6,787 | 2,316 | (11,538 | ) | (50,163 | ) | (53,903 | ) | ||||||||||||||||||||||||
Loss from equity method investment |
(79 | ) | — | — | — | — | — | — | — | (79 | ) | |||||||||||||||||||||||||||
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Net income (loss) |
(2,186 | ) | 192 | 1,244 | (634 | ) | 6,787 | 2,316 | (11,538 | ) | (50,163 | ) | (53,982 | ) | ||||||||||||||||||||||||
Net income (loss) attributable to noncontrolling interests |
— | — | — | (28 | ) | 214 | 78 | — | — | 264 | ||||||||||||||||||||||||||||
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Net income (loss) attributable to UpHealth, Inc. |
$ | (2,186 | ) | $ | 192 | $ | 1,244 | $ | (606 | ) | $ | 6,573 | $ | 2,238 | $ | (11,538 | ) | $ | (50,163 | ) | $ | (54,246 | ) | |||||||||||||||
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Net income (loss) per share: |
||||||||||||||||||||||||||||||||||||||
Basic and diluted |
$ | (0.04 | ) | $ | (0.46 | ) | ||||||||||||||||||||||||||||||||
Weighted average common shares outstanding: |
||||||||||||||||||||||||||||||||||||||
Basic and diluted |
54,985 | 62,620 | 3(c) | 117,605 | ||||||||||||||||||||||||||||||||||
Dividends declared per share |
$ | — | $ | — |
(a) | Depreciation and amortization have been recorded as transaction adjustments for the six months ended June 30, 2021, as if the Business Combinations had been consummated on January 1, 2020. |
(b) | Issuance of additional shares upon consummation of mergers. |
(a) | Depreciation and amortization have been recorded as transaction adjustments for the year ended December 31, 2020, as if the Business Combinations had been consummated on January 1, 2020. |
(b) | Accrued transaction cost incurred, which are not reflected in the historical financial statements, but were incurred through the date of this registration filing, as if the Business Combinations had been consummated on January 1, 2020. |
(c) | Issuance of additional shares upon consummation of mergers. |
(Unaudited, in thousands) |
Three Months Ended June 30, |
$ Change |
% Change |
Six Months Ended June 30, |
$ Change |
% Change |
||||||||||||||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||||||||||||||||||
Revenue |
||||||||||||||||||||||||||||||||
Services |
$ | 14,773 | $ | — | $ | 14,773 | — | % | $ | 22,911 | $ | — | $ | 22,911 | — | % | ||||||||||||||||
Licenses and subscriptions |
9,145 | — | 9,145 | — | % | 12,803 | — | 12,803 | — | % | ||||||||||||||||||||||
Products |
7,964 | — | 7,964 | — | % | 8,984 | — | 8,984 | — | % | ||||||||||||||||||||||
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|
|||||||||||||||||||||
Total revenue |
31,882 |
— |
31,882 |
— |
% |
44,698 |
— |
44,698 |
— |
% | ||||||||||||||||||||||
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|
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|
|||||||||||||||||||||
Cost of goods and services |
||||||||||||||||||||||||||||||||
Services |
9,381 | — | 9,381 | — | % | 14,102 | — | 14,102 | — | % | ||||||||||||||||||||||
License and subscriptions |
6,173 | — | 6,173 | — | % | 6,670 | — | 6,670 | — | % | ||||||||||||||||||||||
Products |
4,727 | — | 4,727 | — | % | 5,644 | — | 5,644 | — | % | ||||||||||||||||||||||
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|
|
|
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|
|||||||||||||||||||||
Total cost of goods and services |
20,281 |
— |
20,281 |
— |
% |
26,416 |
— |
26,416 |
— |
% | ||||||||||||||||||||||
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|
|
|
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|
|||||||||||||||||||||
Gross margin |
11,601 |
— |
11,601 |
— |
% |
18,282 |
— |
18,282 |
— |
% | ||||||||||||||||||||||
Operating expenses |
||||||||||||||||||||||||||||||||
Sales and marketing |
1,695 | — | 1,695 | — | % | 2,580 | — | 2,580 | — | % | ||||||||||||||||||||||
Research and development |
872 | — | 872 | — | % | 2,630 | — | 2,630 | — | % | ||||||||||||||||||||||
General and administrative |
8,974 | 336 | 8,638 | 2,571 | % | 12,254 | 539 | 11,715 | 2,173 | % | ||||||||||||||||||||||
Depreciation and amortization |
2,966 | — | 2,966 | — | % | 3,870 | — | 3,870 | — | % | ||||||||||||||||||||||
Acquisition-related expenses |
32,646 | — | 32,646 | — | % | 35,339 | — | 35,339 | — | % | ||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total operating expenses |
47,153 |
336 |
46,817 |
13,934 |
% |
56,673 |
539 |
56,134 |
10,414 |
% | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Loss from operations |
(35,552 |
) |
(336 |
) |
(35,216 |
) |
10,481 |
% |
(38,391 |
) |
(539 |
) |
(37,852 |
) |
7,023 |
% | ||||||||||||||||
Other income (expense) |
||||||||||||||||||||||||||||||||
Interest expense |
(4,870 | ) | — | (4,870 | ) | — | % | (5,581 | ) | — | (5,581 | ) | — | % | ||||||||||||||||||
Gain on consolidation of equity method investment |
— | — | — | — | % | 640 | — | 640 | — | % | ||||||||||||||||||||||
Gain on fair value of warrant liabilities |
1,074 | — | 1,074 | — | % | 1,074 | — | 1,074 | — | % | ||||||||||||||||||||||
Gain on extinguishment of debt |
151 | — | 151 | — | % | 151 | — | 151 | — | % | ||||||||||||||||||||||
Other expense, net, including interest income |
(258 | ) | — | (258 | ) | — | % | (221 | ) | — | (221 | ) | — | % | ||||||||||||||||||
|
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|
|||||||||||||||||||||
Total other expense |
(3,903 |
) |
— |
(3,903 |
) |
— |
% |
(3,937 |
) |
— |
(3,937 |
) |
— |
% | ||||||||||||||||||
|
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|
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|
|
|
|
|
|
|
|
|||||||||||||||||||||
Loss before income tax benefit |
(39,455 |
) |
(336 |
) |
(39,119 |
) |
11,643 |
% |
(42,328 |
) |
(539 |
) |
(41,789 |
) |
7,753 |
% | ||||||||||||||||
Income tax benefit |
6,647 | — | 6,647 | — | % | 7,053 | — | 7,053 | — | % | ||||||||||||||||||||||
|
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|
|
|
|
|
|
|
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|
|||||||||||||||||||||
Net loss before loss from equity method investment |
(32,808 |
) |
(336 |
) |
(32,472 |
) |
9,664 |
% |
(35,275 |
) |
(539 |
) |
(34,736 |
) |
6,445 |
% | ||||||||||||||||
Loss from equity method investment |
— | — | — | — | % | (561 | ) | — | (561 | ) | — | % | ||||||||||||||||||||
|
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|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Net loss |
(32,808 |
) |
(336 |
) |
(32,472 |
) |
9,664 |
% |
(35,836 |
) |
(539 |
) |
(35,297 |
) |
6,549 |
% | ||||||||||||||||
Less: net loss attributable to noncontrolling interests |
(24 | ) | — | (24 | ) | — | % | (102 | ) | — | (102 | ) | — | % | ||||||||||||||||||
|
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|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Net loss attributable to UpHealth, Inc. |
$ |
(32,784 |
) |
$ |
(336 |
) |
$ |
(32,448 |
) |
9,657 |
% |
$ |
(35,734 |
) |
$ |
(539 |
) |
$ |
(35,195 |
) |
6,530 |
% | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
Revenue |
||||||||||||||||
Services |
46 | % | — | % | 51 | % | — | % | ||||||||
Licenses and subscriptions |
29 | % | — | % | 29 | % | — | % | ||||||||
Products |
25 | % | — | % | 20 | % | — | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total revenue |
100 |
% |
— |
% |
100 |
% |
— |
% | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Cost of goods and services |
||||||||||||||||
Services |
29 | % | — | % | 32 | % | — | % | ||||||||
License and subscriptions |
19 | % | — | % | 15 | % | — | % | ||||||||
Products |
15 | % | — | % | 13 | % | — | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total cost of goods and services |
64 |
% |
— |
% |
59 |
% |
— |
% | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Gross margin |
36 | % | — | % | 41 | % | — | % | ||||||||
Operating expenses |
||||||||||||||||
Sales and marketing |
5 | % | — | % | 6 | % | — | % | ||||||||
Research and development |
3 | % | — | % | 6 | % | — | % | ||||||||
General and administrative |
28 | % | — | % | 27 | % | — | % | ||||||||
Depreciation and amortization |
9 | % | — | % | 9 | % | — | % | ||||||||
Acquisition-related expenses |
102 | % | — | % | 79 | % | — | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total operating expenses |
148 |
% |
— |
% |
127 |
% |
— |
% | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Loss from operations |
(112 |
)% |
— |
% |
(86 |
)% |
— |
% | ||||||||
Other income (expense) |
||||||||||||||||
Interest expense |
(15 | )% | — | % | (12 | )% | — | % | ||||||||
Gain on consolidation of equity method investment |
— | % | — | % | 1 | % | — | % | ||||||||
Gain on fair value of warrant liabilities |
3 | % | — | % | 2 | % | — | % | ||||||||
Gain on extinguishment of debt |
— | % | — | % | — | % | — | % | ||||||||
Other expense, net, including interest income |
(1 | )% | — | % | — | % | — | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total other expense |
(12 |
)% |
— |
% |
(9 |
)% |
— |
% | ||||||||
Loss before income tax benefit |
(124 |
)% |
— |
% |
(95 |
)% |
— |
% | ||||||||
Income tax benefit |
21 | % | — | % | 16 | % | — | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net loss before loss from equity method investment |
(103 |
)% |
— |
% |
(79 |
)% |
— |
% | ||||||||
Loss from equity method investment |
— | % | — | % | (1 | )% | — | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net loss |
(103 |
)% |
— |
% |
(80 |
)% |
— |
% | ||||||||
Less: net loss attributable to noncontrolling interests |
— | % | — | % | — | % | — | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net loss attributable to UpHealth, Inc. |
(103 |
)% |
— |
% |
(80 |
)% |
— |
% | ||||||||
|
|
|
|
|
|
|
|
In thousands |
Three Months Ended June 30, 2021 |
Six Months Ended June 30, 2021 |
||||||
Integrated Care Management |
$ | 11,280 | $ | 17,570 | ||||
Global Telehealth |
6,964 | 7,554 | ||||||
Digital Pharmacy |
5,299 | 5,299 | ||||||
Behavioral Health |
8,339 | 14,275 | ||||||
|
|
|
|
|||||
Total revenue |
$ | 31,882 | $ | 44,698 | ||||
|
|
|
|
In thousands |
Three Months Ended June 30, 2021 |
Six Months Ended June 30, 2021 |
||||||
Integrated Care Management |
$ | 4,615 | $ | 9,722 | ||||
Global Telehealth |
2,634 | 2,933 | ||||||
Digital Pharmacy |
1,982 | 1,982 | ||||||
Behavioral Health |
2,370 | 3,645 | ||||||
|
|
|
|
|||||
Total gross margin |
$ | 11,601 | $ | 18,282 | ||||
|
|
|
|
Six Months Ended June 30, |
||||||||
(In thousands) |
2021 |
2020 |
||||||
Net cash used in operating activities |
$ | (37,229 | ) | $ | — | |||
Net cash provided by investing activities |
3,860 | — | ||||||
Net cash provided by financing activities |
129,801 | — | ||||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
(99 | ) | — | |||||
|
|
|
|
|||||
Net increase in cash, cash equivalents, and restricted cash |
$ | 96,332 | — | |||||
|
|
|
|
• | Integrated Care Management. |
• | Global Telehealth. in-hospital care. Cloudbreak provides digital health infrastructure enabling its partners to ensure healthcare equity and implement unique, private-label telehealth strategies customized to their specific needs and markets. Our international division is powered by Glocal, a platform that delivers comprehensive primary care and specialty consultations at a significantly reduced cost, based upon the typical cost for a Glocal primary care visit compared to the cost generally in India, based on government data. This helps open access to care for individuals in North America, India, Southeast Asia and Africa. Its technologies and services are performing over 50,000 digital health encounters per month with contracts now in place that if fully implemented would increase this number by nearly ten times by 2022. |
• | Digital Pharmacy. |
• | Tech-Enabled Behavioral Health. physician-led clinical model has a proven approach to networking with a growing panel of providers, which is critically important in the field of mental health. |
• | Create virtual, cross-sector care communities; |
• | Integrate and organize information from a wide range of data sources; |
• | Gain insight into health, risks, and opportunities with advance analytics; |
• | Qualify and enroll groups into programs; |
• | Coordinate care teams across the continuum of care; and |
• | Analyze and report on various measures of success. |
• | Connect Anywhere—Virtual Visit Platform: |
• | MARTTI Interpretation |
• | Telehealth Interoperability EMR |
1. | Its digital primary care offerings, which feature digital health applications combined with physical IoT devices to deliver care. The digital health interface for patients and providers is driven by its HelloLyf App, a virtual on-demand clinic for identifying patients and automated TeleCRM. Glocal has also developed LitmusDx, a clinical decision support system for differential diagnosis, investigation and treatment protocols. LitmusDx is cloud-based, regularly updated and cross-checked to ensure the latest in evidence-based protocols. It is a semantic-based engine for accurate differential diagnosis covering over 960 diseases, 8,000 symptoms, 11,000 signs, 300 risk factors and 450 parameters. Over 440 treatment protocols are referenced, covering most diseases, and it has stored more than 50,000 prescription brands covering over 6,500 formulations. Lastly, it references more than 20,000 drug precautions which cover contraindications, drug interactions, adverse reactions and food & alcohol interactions to reduce medical errors. |
2. | Glocal’s Digital Dispensaries, HelloLyf CX, are carefully engineered to deliver critical healthcare services in hard to reach locations where access to primary care and complementary services is constrained. It requires only about 250 sq. ft. of rented or owned space. It needs only nurses, while doctors are available virtually. It is a one-stop-shop where almost all tests can be done, all kinds of doctors accessed and medicines are dispensed. |
3. | Glocal’s acute care hospitals have been designed and set up as eleven modular hospitals, each with a three-bed ER, twenty-bed ICU, four operating theatres (including one with Laminar Air Flow systems, 4Slice CT Scan, X Ray, Echo, Color Doppler, and Ultrasound), treadmill stress testing, two to four dialysis units, a complete clinical lab, pharmacy, general ward beds, and private rooms. These compact hospitals are compliant with local clinical establishment code norms, infection control systems, medical gas pipeline, national building codes and green building norms. They focus on all acute cases like trauma, neuro trauma, pacemaking, thrombolysis, acute surgeries, medical emergencies and also routine surgeries. |
• | Number of lives |
• | Number of care venues |
• | Number of digital and virtual encounters globally |
• | Implement Executed/Signed Contracts . |
• | Drive New Bookings . go-to-market |
• | Explore Synergistic Opportunities with Existing Clients . |
• | Product, Service and Partner Expansion . e-commerce platform to allow providers to sell Medical Horizons’ nutraceutical supplements line to their patients. Additionally, our Behavioral Health capability plans to roll out IOP services nationally. Innovative features of our International telemedicine digital dispensary and AI-guided-evidence-based care solution will be reengineered to enable introduction into U.S. and other developed international markets. Cloudbreak will continue to roll out specific teleconsult applications beyond telepsych and telestroke. Each of these initiatives are expected to provide meaningful revenue opportunities. |
• | Strategic Acquisition . |
• | consumer/provider/patient user acceptance, satisfaction and utilization; |
• | continuous innovation of technologies and services, including an integrated platform that unifies the users’ experiences; |
• | effectively building a brand and reputation; |
• | building interoperable platforms that can connect with legacy enterprise and integrated care network infrastructures; |
• | integrating into the workflows and processes of providers, payors and government entities; |
• | reducing care delivery costs across multiple stakeholders; |
• | enabling a suite of digital health tools from within existing customer workflows; |
• | depth of expertise in care delivery of varying acuity, technology, sales and service; |
• | scalability of our business models; and |
• | operational execution abilities. |
• | Differential diagnosis: |
• | Evidence-based care: |
• | Integrated care: |
• | PACS: |
• | PCAB: |
• | Population health management: |
• | Post-acute: |
• | TeleCRM: |
• | Tele-ICU: |
• | Telepsychiatry: |
• | Telesitting: |
• | Telestroke: |
Name |
Age |
Position | ||
Dr. Chirinjeev Kathuria |
56 | Co-Chairman of the Board of Directors | ||
Dr. Avi S. Katz |
63 | Co-Chairman of the Board of Directors | ||
Dr. Raluca Dinu |
47 | Director | ||
Dr. Mariya Pylypiv |
33 | Director | ||
Neil Miotto |
75 | Director | ||
Nathan Locke |
38 | Director | ||
Jerome Ringo |
66 | Director | ||
Agnès Rey-Giraud |
57 | Director | ||
Moshe Bar-Siman-Tov |
44 | Director | ||
Dr. Ramesh Balakrishnan |
67 | Chief Executive Officer | ||
Dr. Alfonso W. Gatmaitan |
61 | Chief Operating Officer | ||
Dr. Syed Sabahat Azim |
46 | Chief Executive Officer, International | ||
Jamey Edwards |
47 | President | ||
Martin S. A. Beck |
55 | Chief Financial Officer |
• | assisting the Board in the oversight of (i) the accounting and financial reporting processes of the Company and the audits of the financial statements of Company, (ii) the preparation and integrity of the financial statements of the Company, (iii) the compliance by the Company with financial statement and regulatory requirements, (iv) the performance of the Company’s internal finance and accounting personnel and its independent registered public accounting firms, and (v) the qualifications and independence of the Company’s independent registered public accounting firms; |
• | reviewing with each of the internal and independent registered public accounting firms the overall scope and plans for audits, including authority and organizational reporting lines and adequacy of staffing and compensation; |
• | reviewing and discussing with management and internal auditors the Company’s system of internal control and discuss with the independent registered public accounting firm any significant matters regarding internal controls over financial reporting that have come to its attention during the conduct of its audit; |
• | reviewing and discussing with management, internal auditors and independent registered public accounting firm the Company’s financial and critical accounting practices, and policies relating to risk assessment and management; |
• | receiving and reviewing reports of the independent registered public accounting firm discussing (i) all critical accounting policies and practices to be used in the firm’s audit of the Company’s financial statements, (ii) all alternative treatments of financial information within U.S. GAAP that have been discussed with management, ramifications of the use of such alternative disclosures and treatments, and the treatment preferred by the independent registered public accounting firm, and (iii) other material written communications between the independent registered public accounting firm and management, such as any management letter or schedule of unadjusted differences; |
• | reviewing and discussing with management and the independent registered public accounting firm the annual and quarterly financial statements and section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the Company prior to the filing of the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q; |
• | reviewing, or establishing, standards for the type of information and the type of presentation of such information to be included in, earnings press releases and earnings guidance provided to analysts and rating agencies; |
• | discussing with management and the independent registered public accounting firm any changes in Company’s critical accounting principles and the effects of alternative U.S. GAAP methods, off-balance sheet structures and regulatory and accounting initiatives; |
• | reviewing material pending legal proceedings involving the Company and other contingent liabilities; |
• | meeting periodically with the Chief Executive Officer, Chief Financial Officer, the senior internal auditing executive and the independent registered public accounting firm in separate executive sessions to discuss results of examinations; |
• | reviewing and approving all transactions between the Company and related parties or affiliates of the officers of the Company requiring disclosure under Item 404 of Regulation S-K prior to the Company entering into such transactions; |
• | establishing procedures for the receipt, retention and treatment of complaints received by the Company regarding accounting, internal accounting controls or auditing matters, and the confidential, anonymous submissions by employees or contractors of concerns regarding questionable accounting or accounting matters; |
• | reviewing periodically with the Company’s management, the independent registered public accounting firm and outside legal counsel (i) legal and regulatory matters which may have a material effect on the financial statements, and (ii) corporate compliance policies or codes of conduct, including any |
correspondence with regulators or government agencies and any employee complaints or published reports that raise material issues regarding the Company’s financial statements or accounting policies and any significant changes in accounting standards or rules promulgated by the Financial Accounting Standards Board, the SEC or other regulatory authorities; and |
• | establishing policies for the hiring of employees and former employees of the independent registered public accounting firm. |
• | reviewing the performance of the Chief Executive Officer and executive management; |
• | assisting the Board in developing and evaluating potential candidates for executive positions (including Chief Executive Officer); |
• | reviewing and approving goals and objectives relevant to the Chief Executive Officer and other executive officer compensation, evaluating the Chief Executive Officer’s and other executive officers’ performance in light of these corporate goals and objectives, and setting Chief Executive Officer and other executive officer compensation levels consistent with its evaluation and the Company’s philosophy; |
• | approving the salaries, bonus and other compensation for all executive officers; |
• | reviewing and approving compensation packages for new corporate officers and termination packages for corporate officers as requested by management; |
• | reviewing and discussing with the Board and senior officers plans for officer development and corporate succession plans for the Chief Executive Officer and other senior officers; |
• | reviewing and making recommendations concerning executive compensation policies and plans; |
• | reviewing and recommending to the Board the adoption of or changes to the compensation of the Company’s directors; |
• | reviewing and approving the awards made under any executive officer bonus plan, and providing an appropriate report to the Board; |
• | reviewing and making recommendations concerning long-term incentive compensation plans, including the use of stock options and other equity-based plans, and, except as otherwise delegated by the Board, acting as the “Plan Administrator” for equity-based and employee benefit plans; |
• | approving all special perquisites, special cash payments and other special compensation and benefit arrangements for the Company’s executive officers and employees; |
• | reviewing periodic reports from management on matters relating to the Company’s personnel appointments and practices; |
• | assisting management in complying with the Company’s proxy statement and annual report disclosure requirements; |
• | issuing an annual Report of the Compensation Committee on Executive Compensation for the Company’s annual proxy statement in compliance with applicable SEC rules and regulations; |
• | annually evaluating the Committee’s performance and the committee’s charter and recommending to the Board any proposed changes to the charter or the committee; and |
• | undertaking all further actions and discharging all further responsibilities imposed upon the committee from time to time by the Board, the federal securities laws or the rules and regulations of the SEC. |
• | developing and recommending to the Board the criteria for appointment as a director; |
• | identifying, considering, recruiting and recommending candidates to fill new positions on the Board; |
• | reviewing candidates recommended by stockholders; |
• | conducting the appropriate and necessary inquiries into the backgrounds and qualifications of possible candidates; and |
• | recommending director nominees for approval by the Board and election by the stockholders at the next annual meeting. |
Name and Principal Position(1) |
Year |
Salary ($) |
Bonus ($) |
All Other Compensation ($)(2) |
Total ($) |
|||||||||||||||
Dr. Chirinjeev Kathuria, |
2020 | $ | – | $ | – | $ | – | $ | – | |||||||||||
Executive Chairman |
2019 | $ | – | $ | – | $ | – | $ | – | |||||||||||
Dr. Mariya Pylypiv, |
2020 | $ | – | $ | – | $ | – | $ | – | |||||||||||
Vice Chairwoman and Chief Strategy Officer |
2019 | $ | – | $ | – | $ | – | $ | – | |||||||||||
Dr. Alfonso W. Gatmaitan,(3) |
2020 | $ | – | $ | – | $ | – | $ | – | |||||||||||
Co-Chief Executive Officer and President |
2019 | $ | – | $ | – | $ | – | $ | – | |||||||||||
Dr. Ramesh Balakrishnan, |
2020 | $ | 240,000 | $ | 250,000 | $ | 39,509 | $ | 529,509 | |||||||||||
Co-Chief Executive Officer |
2019 | $ | 240,000 | $ | – | $ | 39,509 | $ | 279,509 | |||||||||||
Martin S.A. Beck,(3) |
2020 | $ | – | $ | – | $ | – | $ | – | |||||||||||
Chief Financial Officer |
2019 | $ | – | $ | – | $ | – | $ | – | |||||||||||
Dr. Syed Sabahat Azim,(4) |
2020 | $ | 30,589 | $ | – | $ | 34,170 | $ | 64,760 | |||||||||||
Chief Executive Officer of Glocal Healthcare Systems Private Limited |
2019 | $ | 31,297 | $ | – | $ | 34,961 | $ | 66,257 |
(1) | None of Dr. Kathuria, Dr. Pylypiv, Dr. Gatmaitan, or Mr. Beck received any compensation during 2020 or 2019. However, pursuant to the terms of the offer letters between each such individual and UpHealth Services, Inc., these individuals were paid their 2020 accrued salary amounts (Dr. Kathuria–$200,000, Dr. Pylypiv–$200,000, Dr. Gatmaitan–$300,000, or Mr. Beck–$196,875) upon the closing of the UpHealth Business Combination. In addition, Dr. Gatmaitan was paid a signing bonus of $50,000 upon the closing of the UpHealth Business Combination. Dr. Gatmaitan is also entitled to bonuses in the aggregate amount of $500,000 to be paid as follows (subject to Dr. Gatmaitan being employed by UpHealth Services, Inc. UpHealth Holdings, Inc., or a successor entity as of such date): $150,000, $150,000, $150,000, and $50,000 on the dates that are six months, eighteen months, thirty months, and forty-two months following the closing of the UpHealth Business Combination, respectively. Mr. Beck received $225,000 upon closing of the UpHealth Business Combination. |
(2) | “All other compensation” for Dr. Balakrishnan consisted of the following in each of 2020 and 2019: $23,237 for premium payments for additional life insurance, $15,000 for company vehicle and vehicle expenses, and $1,272 for home office internet. All Other Compensation for Dr. Azim consisted of the following for 2020 and 2019: $8,249 and $8,450 for house rent allowance, $131 and $135 for transport allowance, and $25,748 and $26,376 for rural posting allowance, respectively. |
(3) | The employment offer letters between each Dr. Gatmaitan and Mr. Beck and UpHealth Services, Inc., include the following severance provisions: If the individual’s employment is terminated without Cause (as defined in the offer letter) or for Good Reason (as defined in the offer letter), such individual is entitled to the following: (a) base salary for one year; (b) payment of any bonus earned during prior fiscal years, but not yet paid; and (c) accelerated vesting of all outstanding rights for stock, warrants, or other equity ownership interests (vesting occurs on one-year anniversary of termination date, unless termination is within two years following a Change in Control (as defined in the offer letter), in which case vesting occurs on termination date). In addition, in the event of the death or |
Disability (as defined in the offer letter) of the individual, accelerated vesting of all outstanding rights for stock, warrants, or other equity ownership interests to the date of termination of employment due to death or Disability. Neither the employment offer letter between Dr. Pylypiv and UpHealth Services, Inc. nor the employment agreement between Dr. Balakrishnan and Thrasys, Inc. include severance provisions. Dr. Azim is not a party to an employment agreement. |
(4) | 2020 and 2019 salary and “all other compensation” for Dr. Azim was converted based on the exchange rate reported by the U.S. Federal Reserve Board on December 31, 2020 of 1 USD to 73.0100 Indian Rupees and December 31, 2019 of 1 USD to 71.3600 Indian Rupees, respectively. |
Name and Principal Position |
Year |
Salary ($) |
Bonus ($) |
All Other Compensation ($) |
Total ($) |
|||||||||||||||
Jamey Edwards |
2020 | $ | 300,000 | $ | 0 | $ | 34,433.64 | $ | 334,433.64 | |||||||||||
Chief Executive Officer of Cloudbreak |
2019 | $ | 300,000 | $ | 0 | $ | 32,114.88 | $ | 332,114.88 |
• | each person known by the Company to be the beneficial owner of more than 5% of the Common Stock of the Company; |
• | each of the Company’s officers and directors; and |
• | all officers and directors of the Company, as a group. |
Shares Beneficially Owned |
Shares Beneficially Owned After this Offering |
|||||||||||||||
Name and Address of Beneficial Owner(1) |
Number of Shares |
% of Class |
Number of Shares |
% of Class |
||||||||||||
Dr. Avi S. Katz(2) |
5,005,549 | 4.2 | % | 5,005,550 | 3.8 | % | ||||||||||
Dr. Raluca Dinu |
– | – | * | – | – | * | ||||||||||
Neil Miotto |
– | – | * | – | – | * | ||||||||||
Dr. Chirinjeev Kathuria(7) |
43,100,443 | 36.3 | % | 43,100,443 | 33.1 | % | ||||||||||
Dr. Mariya Pylypiv |
7,461,644 | 6.3 | % | 7,461,644 | 5.7 | % | ||||||||||
Dr. Alfonso Gatmaitan |
1,079,833 | – | * | 1,079,833 | – | * | ||||||||||
Dr. Ramesh Balakrishnan |
4,351,175 | 3.7 | % | 4,351,175 | 3.3 | % | ||||||||||
Martin S. A. Beck(3) |
4,424,075 | 3.8 | % | 4,424,075 | 3.4 | % | ||||||||||
Dr. Syed Sabahat Azim(4) |
6,116,842 | 5.2 | % | 180,145 | – | * | ||||||||||
James Edwards(5) |
1,523,821 | 1.3 | % | 1,523,821 | 1.2 | % | ||||||||||
Nathan Locke |
– | – | * | – | – | * | ||||||||||
Agnès Rey-Giraud |
– | – | * | – | – | * | ||||||||||
Jerome Ringo |
– | – | * | – | – | * | ||||||||||
Moshe Bar-Siman-Tov |
– | – | * | – | – | * | ||||||||||
All directors and executive officers (14 individuals) as a group |
73,063,383 | 61.6 | % | 73,063,383 | 56.1 | % |
* | Less than one percent. |
(1) | The business address of Dr. Avi Katz, Dr. Raluca Dinu and Neil Miotto is 1731 Embarcadero Rd., Suite 200, Palo Alto, CA 94303. The business address of each of the other individuals is c/o UpHealth, Inc., 14000 S. Military Trail, Suite 203, Delray Beach, FL 33484. |
(2) | Consists of (i) 4,524,300 shares of Common Stock, and (ii) 481,250 shares of Common Stock underlying warrants, all held by the Sponsor. The securities held by the Sponsor are beneficially owned by Dr. Avi S. Katz, the co-chairman of the Company’s board of directors and the manager of the Sponsor, who has sole voting and dispositive power over the shares held by the Sponsor. |
(3) | Consists of (i) 928,656 shares held by Rewi Enterprises LLC (of which Mr. Beck is the sole owner) and (ii) 3,495,419 shares held by Partners, (of which Mr. Beck is an equity owner and chairman of the board of directors) for which Mr. Beck may be deemed the beneficial owner. Mr. Beck disclaims beneficial ownership of the shares held by Partners. |
(4) | Includes (i) 684,981 shares beneficially owned by Kimberlite (of which Dr. Azim and his wife are equity owners and the sole directors) and (ii) 2,715,542 shares beneficially owned by Dr. Azim’s wife for which Dr. Azim may be deemed the beneficial owner. All of the shares listed are held of record by Eligere Limited Liability Company (“ Eligere |
(5) | Includes 473,266 shares of Common Stock issuable upon the exercise of options within 60 days of September 23, 2021. |
• | in whole and not in part; |
• | at a price of $0.01 per warrant; |
• | upon a minimum of 30 days’ prior written notice of redemption, which the Company refers to as the 30-day redemption period; and |
• | if, and only if, the last reported sale price of the Common Stock equals or exceeds $18.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within a 30 trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders. |
• | 1% of the total number of shares of Common Stock then outstanding; or |
• | the average weekly reported trading volume of the Common Stock during the four calendar weeks preceding the filing of a notice on Form 144 with respect to the sale. |
• | the issuer of the securities that was formerly a shell company has ceased to be a shell company; |
• | the issuer of the securities is subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act; |
• | the issuer of the securities has filed all Exchange Act reports and material required to be filed, as applicable, during the preceding 12 months (or such shorter period that the issuer was required to file such reports and materials), other than Form 8-K reports; and |
• | at least one year has elapsed from the time that the issuer filed current Form 10 type information with the SEC reflecting its status as an entity that is not a shell company. |
• | a stockholder who owns 15% or more of our outstanding voting stock (otherwise known as an “interested stockholder”); |
• | an affiliate of an interested stockholder; or |
• | an associate of an interested stockholder, for three years following the date that the stockholder became an interested stockholder. |
• | the Board approves the transaction that made the stockholder an “interested stockholder,” prior to the date of the transaction; |
• | after the completion of the transaction that resulted in the stockholder becoming an interested stockholder, that stockholder owned at least 85% of our voting stock outstanding at the time the transaction commenced, other than statutorily excluded shares of common stock; or |
• | on or subsequent to the date of the transaction, the business combination is approved by the Board and authorized at a meeting of our stockholders, and not by written consent, by an affirmative vote of at least two-thirds of the outstanding voting stock not owned by the interested stockholder. |
• | banks, insurance companies or other financial institutions; |
• | tax-exempt or governmental organizations; |
• | qualified foreign pension funds (or any entities all of the interests of which are held by a qualified foreign pension fund); |
• | brokers or dealers in securities or foreign currencies; |
• | U.S. persons whose functional currency is not the U.S. dollar; |
• | “controlled foreign corporations,” “passive foreign investment companies” and corporations that accumulate earnings to avoid U.S. federal income tax; |
• | traders in securities that use the mark-to-market |
• | persons subject to the alternative minimum tax; |
• | partnerships or other pass-through entities for U.S. federal income tax purposes or holders of interests therein; |
• | persons deemed to sell our Common Stock under the constructive sale provisions of the Code; |
• | persons that acquired our Common Stock through the exercise of employee stock options or otherwise as compensation or through a tax-qualified retirement plan; |
• | real estate investment trusts; |
• | regulated investment companies; |
• | certain former citizens or long-term residents of the United States; and |
• | persons that hold our Common Stock as part of a straddle, appreciated financial position, synthetic security, hedge, conversion transaction or other integrated investment or risk reduction transaction. |
• | an individual who is a citizen or resident of the United States; |
• | a corporation (or other entity taxable as a corporation for U.S. federal income tax purposes) created or organized in or under the laws of the United States, any state thereof or the District of Columbia; |
• | an estate the income of which is subject to U.S. federal income tax regardless of its source; or |
• | a trust (i) the administration of which is subject to the primary supervision of a U.S. court and which has one or more United States persons (within the meaning of the Code) who have the authority to control all substantial decisions of the trust or (ii) which has made a valid election under applicable U.S. Treasury regulations to be treated as a United States person. |
• | the Non-U.S. holder is an individual who is present in the United States for a period or periods aggregating 183 days or more during the calendar year in which the sale or disposition occurs and certain other conditions are met; |
• | the gain is effectively connected with a trade or business conducted by the Non-U.S. holder in the United States (and, if required by an applicable income tax treaty, is attributable to a permanent establishment maintained by the Non-U.S. holder in the United States); or |
• | we are or have been a USRPHC for U.S. federal income tax purposes at any time during the shorter of the five-year period ending on the date of disposition or the period that the Non-U.S. holder held our Common |
Stock, and, in the case where shares of our Common Stock are regularly traded on an established securities market, the Non-U.S. holder has owned, directly or constructively, more than 5% of our Common Stock at any time within the shorter of the five-year period preceding the disposition or such Non-U.S. holder’s holding period for the shares of our Common Stock. |
Underwriter |
Number of Shares of Common Stock |
|||||||
Oppenheimer & Co. Inc. |
– | – | ||||||
Northland Securities, Inc. |
– | – | ||||||
Lake Street Capital Markets, LLC |
||||||||
|
|
|
|
|||||
Total |
||||||||
|
|
|
|
Per Share of Common Stock |
Total without Exercise of Over-Allotment Option |
Total with Full Exercise of Over-Allotment Option |
||||||||||
Public offering price |
$ | – | $ | – | $ | – | ||||||
Underwriting discounts and commissions (1) |
||||||||||||
Proceeds, before expenses, to us |
$ | – | $ | – | $ | – |
(1) | We have agreed to pay the underwriters a commission of 5.0% of the gross proceeds of this offering. |
• | Stabilizing transactions—the representative may make bids or purchases for the purpose of pegging, fixing or maintaining the price of the shares, so long as stabilizing bids do not exceed a specified maximum. |
• | Over-allotments and syndicate covering transactions—the underwriters may sell more shares of common stock in connection with this offering than the number of shares of common stock that they have committed to purchase. This over-allotment creates a short position for the underwriters. This short sales position may involve either “covered” short sales or “naked” short sales. Covered short sales are short sales made in an amount not greater than the underwriters’ over-allotment option to purchase additional shares of common stock in this offering described above. The underwriters may close out any covered short position either by exercising its over-allotment option or by purchasing shares of common stock in the open market. To determine how they will close the covered short position, the underwriters will consider, among other things, the price per share of common stock available for purchase in the open market, as compared to the price at which they may purchase shares of common stock through the over-allotment option. Naked short sales are short sales in excess of the over-allotment option. The underwriters must close out any naked short position by purchasing shares of common stock in the open market. A naked short position is more likely to be created if the underwriters are concerned that, in the open market after pricing, there may be downward pressure on the price per share of common stock that could adversely affect investors who purchase shares of common stock in this offering. |
• | Penalty bids—if the representative purchases shares in the open market in a stabilizing transaction or syndicate covering transaction, it may reclaim a selling concession from the underwriters and selling group members who sold those shares as part of this offering. |
• | Passive market making—market makers in the shares who are underwriters or prospective underwriters may make bids for or purchases of shares, subject to limitations, until the time, if ever, at which a stabilizing bid is made. |
A. | to any legal entity that is a qualified investor as defined under the Prospectus Regulation; |
B. | to fewer than 150 natural or legal persons (other than qualified investors as defined under the Prospectus Regulation), subject to obtaining the prior consent of the representatives; or |
C. | in any other circumstances falling within Article 1(4) of the Prospectus Regulation; |
(a) | a fund for joint investments in trust (i.e., mutual fund), as such term is defined in the Law for Joint Investments in Trust, 5754-1994, or a management company of such a fund; |
(b) | a provident fund as defined in Section 47(a)(2) of the Income Tax Ordinance of the State of Israel, or a management company of such a fund; |
(c) | an insurer, as defined in the Law for Oversight of Insurance Transactions, 5741-1981, (d) a banking entity or satellite entity, as such terms are defined in the Banking Law (Licensing), 5741-1981, other than a joint services company, acting for their own account or for the account of investors of the type listed in Section 15A(b) of the Securities Law 1968; |
(d) | a company that is licensed as a portfolio manager, as such term is defined in Section 8(b) of the Law for the Regulation of Investment Advisors and Portfolio Managers, 5755-1995, acting on its own account or for the account of investors of the type listed in Section 15A(b) of the Securities Law 1968; |
(e) | a company that is licensed as an investment advisor, as such term is defined in Section 7(c) of the Law for the Regulation of Investment Advisors and Portfolio Managers, 5755-1995, acting on its own account; |
(f) | a company that is a member of the Tel Aviv Stock Exchange, acting on its own account or for the account of investors of the type listed in Section 15A(b) of the Securities Law 1968; |
(g) | an underwriter fulfilling the conditions of Section 56(c) of the Securities Law, 5728-1968; |
(h) | a venture capital fund (defined as an entity primarily involved in investments in companies which, at the time of investment, (i) are primarily engaged in research and development or manufacture of new technological products or processes and (ii) involve above-average risk); |
(i) | an entity primarily engaged in capital markets activities in which all of the equity owners meet one or more of the above criteria; and |
(j) | an entity, other than an entity formed for the purpose of purchasing shares in this offering, in which the shareholders equity (including pursuant to foreign accounting rules, international accounting regulations and U.S. generally accepted accounting rules, as defined in the Securities Law Regulations (Preparation of Annual Financial Statements), 1993) is in excess of NIS 50 million. |
(a) | by an investment firm, bank or intermediary permitted to conduct such activities in Italy in accordance with Legislative Decree No. 58 of 24 February 1998 and Legislative Decree No. 385 of 1 September 1993 (the Banking Act); |
(b) | in compliance with Article 129 of the Banking Act and the implementing guidelines of the Bank of Italy; and |
(c) | in compliance with any other applicable laws and regulations and other possible requirements or limitations which may be imposed by Italian authorities. |
F-4 |
||||
F-6 |
||||
F-7 |
||||
F-8 |
||||
F-9 |
||||
F-10 |
||||
F-11 |
||||
F-32 |
||||
F-34 |
||||
F-35 |
||||
F-36 |
||||
F-37 |
||||
F-38 |
||||
F-39 |
||||
F-78 |
||||
F-80 |
||||
F-81 |
||||
F-82 |
||||
F-83 |
||||
F-84 |
||||
F-85 |
||||
F-103 |
||||
F-105 |
||||
F-107 |
||||
F-108 |
||||
F-109 |
||||
F-110 |
||||
F-160 |
||||
F-161 |
||||
F-162 |
||||
F-163 |
||||
F-165 |
||||
F-204 |
||||
F-205 |
||||
F-206 |
||||
F-207 |
||||
F-208 |
F-243 |
||||
F-245 |
||||
F-248 |
||||
F-250 |
||||
F-251 |
||||
F-253 |
||||
F-256 |
||||
F-277 |
||||
F-279 |
||||
F-281 |
||||
F-282 |
||||
F-283 |
||||
F-285 |
||||
F-301 |
||||
F-303 |
||||
F-304 |
||||
F-305 |
||||
F-306 |
||||
F-307 |
||||
F-308 |
||||
F-316 |
||||
F-318 |
||||
F-319 |
||||
F-320 |
||||
F-321 |
||||
F-322 |
||||
F-330 |
||||
F-332 |
||||
F-334 |
||||
F-335 |
||||
F-336 |
||||
F-337 |
||||
F-338 |
||||
F-348 |
||||
F-349 |
F-351 |
||||
F-352 |
||||
F-353 |
||||
F-354 |
||||
F-355 |
||||
F-373 |
||||
F-374 |
||||
F-375 |
||||
F-376 |
||||
F-377 |
||||
F-378 |
F-6 | ||||
F-7 | ||||
F-8 | ||||
F-9 | ||||
F-10 | ||||
F-11 |
ASSETS |
||||
Current assets: |
||||
Cash and cash equivalents |
$ | |||
Restricted cash |
||||
Accounts receivable – trade, net of allowance for doubtful accounts and contractual adjustments |
||||
Inventories |
||||
Prepaid expenses and other current assets |
||||
|
|
|||
Total current assets |
||||
Noncurrent assets: |
||||
Property, plant and equipment, net of accumulated depreciation of $ |
||||
Intangible assets, trade names, net of accumulated amortization of $ |
||||
Intangible assets, developed technology, net of accumulated amortization of $ |
||||
Intangible assets, customer relationships, net of accumulated amortization of $ |
||||
Goodwill |
||||
Deferred tax asset |
||||
Equity method investment |
||||
Other assets |
||||
|
|
|||
Total Assets |
$ | |||
|
|
|||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||
Current liabilities |
||||
Accounts payable |
$ | |||
Accrued liabilities |
||||
Deferred revenue |
||||
Due to related party |
||||
Seller Note-Thrasys |
||||
Seller Note-BHS |
||||
Income tax payable |
||||
Deferred tax liability |
||||
Current portion, related party - long term debt |
||||
Current portion, Provider Relief Funds |
||||
Current portion, Paycheck Protection Program loan |
||||
|
|
|||
Total current liabilities |
||||
Related party - long term debt |
||||
Paycheck Protection Program loan |
||||
|
|
|||
Total liabilities |
||||
|
|
|||
Commitments and Contingencies |
||||
Stockholders’ Equity |
||||
Common stock. Authorized |
||||
Additional paid in capital |
||||
Accumulated deficit |
( |
) | ||
|
|
|||
Total stockholders’ equity |
||||
|
|
|||
Total liabilities and stockholders’ equity |
$ | |||
|
|
Revenue |
||||
Services |
$ | |||
Licenses and subscriptions |
||||
Products |
||||
|
|
|||
Cost of goods and services (excluding depreciation and amortization) |
||||
Operating expenses |
||||
Selling, general and administrative |
||||
Research and development |
||||
Depreciation and amortization |
||||
|
|
|||
|
|
|||
Other income (expense) |
||||
Other expense |
( |
) | ||
Other income, net, including interest income |
||||
|
|
|||
( |
) | |||
|
|
|||
Income before income taxes |
( |
) | ||
Income tax benefit (expense) |
( |
) | ||
|
|
|||
Income before net equity in earnings of affiliate |
( |
) | ||
Net earnings in equity method investment. |
( |
) | ||
|
|
|||
Net Income (Loss) |
$ | ( |
) | |
|
|
|||
Basic earnings per share for common stock: |
||||
Income from continuing operations attributable to UpHealth Holdings, Inc. common stockholders. |
( |
) | ||
(Loss) income from discontinued operations attributable to UpHealth Holdings, Inc. common stockholders. |
||||
|
|
|||
Net income (loss) attributable to UpHealth Holdings, Inc. common stockholders. |
( |
) | ||
|
|
|||
Diluted earnings per share for common stock: |
||||
Income from continuing operations attributable to UpHealth Holdings, Inc. common stockholders. |
( |
) | ||
(Loss) income from discontinued operations attributable to UpHealth Holdings, Inc. common stockholders. |
||||
|
|
|||
Net income (loss) attributable to UpHealth Holdings, Inc. common stockholders. |
( |
) | ||
|
|
|||
Weighted average number of common shares outstanding: |
||||
Basic |
||||
Diluted |
Common Stock |
||||||||||||||||||||
Number of Shares Outstanding |
Par Amount |
Additional Paid-In Capital |
Retained Earnings |
Total |
||||||||||||||||
Balance — January 1, 2020 |
— | $ | — | $ | — | $ | — | $ | — | |||||||||||
Issuance of common stock for formation |
( |
) | — | — | ||||||||||||||||
Consolidated net loss |
— | — | — | ( |
) | ( |
) | |||||||||||||
Issuance of common stock to consummate business combinations |
— | |||||||||||||||||||
Issuance of common stock in exchange for a portion of equity method investment. |
— | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance — December 31, 2020 |
$ | $ | $ | ( |
) | $ | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
Operating activities |
||||
Net loss |
$ | ( |
) | |
Adjustments to reconcile net loss to net cash used in operating activities: |
||||
Depreciation and amortization |
||||
Net earnings in equity method investment |
||||
Deferred income taxes |
( |
) | ||
Changes in operating assets and liabilities: |
||||
Accounts receivable |
( |
) | ||
Inventories |
( |
) | ||
Prepaid expenses and other assets |
( |
) | ||
Accounts payable and accrued liabilities |
||||
Income taxes payable |
||||
Deferred revenue |
( |
) | ||
Due to related parties |
||||
|
|
|||
Net cash used in operating activities |
( |
) | ||
|
|
|||
Investing activities: |
||||
Net cash acquired in acquisition of businesses |
||||
|
|
|||
Net cash provided by investing activities |
||||
|
|
|||
Net increase in cash and cash equivalents |
||||
Cash and cash equivalents at beginning of period |
||||
|
|
|||
Cash and cash equivalents at end of period |
$ | |||
|
|
|||
Supplement schedule of cash flow information |
||||
Cash paid for interest |
||||
Cash paid for income taxes |
||||
Supplemental schedule of noncash investing and financing activities: |
||||
Issuance of common stock for formation |
||||
Issuance of common stock and promissory notes to consummate Thrasys business combinations |
||||
Issuance of common stock and promissory notes to consummate BHS business combinations |
||||
Issuance of common stock and promissory note for invetment in unconsolidated entity |
1. |
Organization and Business |
2. |
Summary of Significant Accounting Policies |
• | the fair value of assets acquired and liabilities assumed for business combinations; |
• | the standalone selling price (“SSP”) of performance obligations for revenue contracts with multiple performance obligations; |
• | the recognition, measurement and valuation of current and deferred income taxes and uncertain tax positions; |
• | the identification and estimated economic lives of intangible assets; and |
• | the fair value of stock awards issued. |
• | Services – Medical services provided through our behavioral services operations. |
• | Services – Medical HIPAA-compliant (Health Insurance Portability and Accountability Act) SaaS internet hosting, licenses, and subscriptions to healthcare communities. |
• | Services – Discrete information technology services for set-up, configuration, implementation and customization services for healthcare communities |
3. |
Business Combinations |
Thrasys, Inc and |
||||
Subsidiary |
||||
As of November 20, 2020 |
||||
Allocation of Purchase price: |
||||
Accounts receivable, net |
$ | |||
Prepaid expenses and other |
||||
Identifiable intangible assets |
||||
Property, plant and equipment |
||||
Other assets |
||||
Goodwill |
||||
Total assets acquired |
||||
Accounts payable |
||||
Accrued expenses and other current liabilities |
||||
Debt |
||||
Deferred tax liability |
||||
Deferred revenue |
||||
Total liabilities assumed |
||||
Net assets acquired |
$ |
|||
Approximate Fair |
Estimated |
|||||||
Value |
Useful Life |
|||||||
|
(in years) |
|||||||
Definite-lived intangible assets - Trade names |
$ | |||||||
Definite-lived intangible assets - Technology and intellectual property |
||||||||
Definite-lived intangible asset - Customer relationships |
||||||||
|
|
|||||||
Total fair value of identifiable intangible assets |
$ | |||||||
|
|
Behavioral Health |
||||
Services , LLC and |
||||
Subsidiaries |
||||
As of November 20, 2020 |
||||
Allocation of Purchase price: |
||||
Accounts receivable, net |
$ | |||
Inventories |
||||
Prepaid expenses and other |
||||
Identifiable intangible assets |
||||
Property, plant and equipment |
||||
Other assets |
||||
Deferred taxes |
||||
Goodwill |
||||
|
|
|||
Total assets acquired |
||||
|
|
|||
Accounts payable |
||||
Accrued expenses and other current liabilities |
||||
Debt |
||||
|
|
|||
Total liabilities assumed |
||||
|
|
|||
Net assets acquired |
$ |
|||
|
|
Approximate Fair |
Estimated |
|||||||
Value |
Useful Life |
|||||||
|
(in years) |
|||||||
Definite-lived intangible assets - Trade names |
$ | |||||||
|
|
|||||||
Total fair value of identifiable intangible assets |
$ | |||||||
|
|
Pro Forma |
Year Ended December 31, 2020 |
|||
Revenues |
$ | |||
Net |
$ | ( |
) | |
Basic Earnings per share |
$ | ( |
) | |
Diluted earnings per share |
$ | ( |
) |
4. |
Investment in Unconsolidated Entities |
5. |
Intangible Assets |
Approximate Fair Value |
Estimated Useful Life |
|||||||
|
(in years) |
|||||||
Technology and intellectual property |
$ | |
||||||
Customer relationships |
||||||||
Trade names |
||||||||
|
|
|||||||
Total fair value of identifiable intangible assets |
$ |
|||||||
|
|
Developed |
Customer |
|||||||||||
Trade Name |
Technology |
Relationships |
||||||||||
Amortization |
Amortization |
Amortization |
||||||||||
2021 |
$ | $ | $ | |||||||||
2022 |
||||||||||||
2023 |
||||||||||||
2024 |
||||||||||||
2025 |
||||||||||||
Thereafter |
||||||||||||
|
|
|
|
|
|
|||||||
$ |
$ |
$ |
||||||||||
|
|
|
|
|
|
6. |
Accrued Liabilities |
Accrued professional fees |
$ | |||
Accrued software licenses |
||||
Accrued interest on debt |
||||
Accrued payroll and bonuses |
||||
Accrued shareholder distribution |
||||
Other accruals |
||||
|
|
|||
$ |
||||
|
|
7. |
Deferred Compensation |
8. |
Debt |
9. |
Fair Value of Financial Instruments |
Level 1- | Quoted (unadjusted) prices in active markets for identical assets or liabilities. | |
Level 2 - | Other observable inputs, either directly or indirectly, other than quoted prices included in Level 1, including: |
• | Quoted prices for similar assets/liabilities in active markets; |
• | Quoted prices for identical or similar assets/liabilities in non-active markets (e.g., few transactions, limited information, non-current prices, high variability over time); |
• | Inputs other than quoted prices that are observable for the asset/liability (e.g., interest rates, yield curves, volatilities, default rates); and |
• | Inputs that are derived principally from or corroborated by other observable market data. |
Level 3 - |
Unobservable inputs that cannot be corroborated by observable market data. |
10. |
Capital Structure |
11. |
Revenue |
Fiscal Year Ended December 31 2020 |
||||
Subscriptions and Licenses |
$ | |||
Professional IT Services |
||||
Medical Services |
||||
Product Revenues |
||||
|
|
|||
$ |
||||
|
|
Americas |
$ | |||
Europe |
||||
|
|
|||
$ |
||||
|
|
Contract Assets |
||||
December 31, 2020 |
||||
Contract asset, beginning of period |
$ | |||
Contract assets acquired in business combination |
||||
Reclassifications to billed receivables |
( |
) | ||
Revenues recognized in excess of period billings |
||||
|
|
|||
Ending Balance |
$ | |||
|
|
Deferred Revenue |
||||
December 31, 2020 |
||||
Beginning Balance, January 1, 2020 |
$ | |||
Revenues recognized from balances held at the beginning of the period |
||||
Fair value of deferred revenues from business combination |
||||
Revenues deferred from period collections on unfulfilled performance obligations |
( |
) | ||
|
|
|||
Ending Balance |
$ | |||
|
|
Remaining Performance Obligations |
Total |
Current |
Future |
|||||||||
Subscriptions |
$ | |||||||||||
Licenses |
||||||||||||
SaaS and Hosting |
||||||||||||
Program Management and Services |
||||||||||||
|
|
|
|
|
|
|||||||
$ | ||||||||||||
|
|
|
|
|
|
12. |
Income Taxes |
Current: |
||||
Federal |
$ | |
||
State |
||||
|
|
|||
Total current expense |
||||
|
|
|||
Deferred: |
||||
Federal |
( |
) | ||
State |
( |
) | ||
|
|
|||
Total deferred benefit |
( |
) | ||
|
|
|||
Income tax expense |
$ | |||
|
|
Amount |
Tax Rate |
|||||||
Federal Statutory income tax |
( |
) | % | |||||
State income tax, net of federal benefit |
( |
) | % | |||||
Transactions costs |
- |
% | ||||||
Other |
- |
% | ||||||
|
|
|
|
|||||
Effective Income Tax Rate |
- |
% | ||||||
|
|
|
|
Deferred Tax Assets |
||||
Accrued expenses |
$ | |||
Transactions costs |
||||
State credits |
||||
Net operating loss carryforwards |
||||
Total deferred tax assets |
||||
Deferred Tax Liabilities |
||||
Amortization and depreciation |
( |
) | ||
Deferred revenue |
( |
) | ||
Total deferred tax liabilities |
( |
) | ||
Less: Valuation allowance |
( |
) | ||
Net deferred tax asset (liability) |
$ | ( |
) | |
13. |
Earnings (Loss) Per Share |
14. |
Employee Benefit Plans |
15. |
Related-Party Transactions |
16. |
Commitments and Contingencies |
Year |
Related Party |
Third-Party |
Total |
|||||||||
2021 |
$ | $ | $ | |||||||||
2022 |
||||||||||||
2023 |
||||||||||||
2024 |
||||||||||||
2025 |
||||||||||||
$ | $ | $ | ||||||||||
F-34 | ||||
F-35 | ||||
F-36 | ||||
F-37 | ||||
Condensed Consolidated Statements of Cash Flows for the three and six months ended June 30, 2021 and 2020 |
F-38 | |||
F-39 |
June 30, 2021 |
December 31, 2020 |
|||||||
ASSETS | | |||||||
Current Assets: |
||||||||
Cash and cash equivalents |
$ | $ | ||||||
Restricted cash |
||||||||
Accounts receivable, net |
||||||||
Inventories |
||||||||
Due from related parties |
||||||||
Prepaid expenses and other current assets |
||||||||
|
|
|
|
|||||
Total current assets |
||||||||
|
|
|
|
|||||
Property and equipment, net |
||||||||
Intangible assets, net |
||||||||
Goodwill |
||||||||
Equity method investments |
||||||||
Deferred tax assets |
||||||||
Other assets |
||||||||
|
|
|
|
|||||
Total assets |
$ | $ | ||||||
|
|
|
|
|||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | | |||||||
Current Liabilities: |
||||||||
Accounts payable |
$ | $ | ||||||
Accrued expenses |
||||||||
Deferred revenue |
||||||||
Due to related party |
||||||||
Income taxes payable |
||||||||
Related-party long-term debt, current |
||||||||
Long-term debt, current |
||||||||
Derivative liability, current |
||||||||
Forward share purchase liability |
||||||||
Other current liabilities |
||||||||
|
|
|
|
|||||
Total current liabilities |
||||||||
|
|
|
|
|||||
Related-party long-term debt, noncurrent |
||||||||
Long-term debt, noncurrent |
||||||||
Deferred tax liabilities |
||||||||
Warrant liabilities, noncurrent |
||||||||
Derivative liability, noncurrent |
||||||||
Other long-term liabilities |
||||||||
|
|
|
|
|||||
Total liabilities |
||||||||
|
|
|
|
|||||
Commitments and Contingencies (Note 17) |
||||||||
Stockholders’ Equity: |
||||||||
Preferred stock, $ |
||||||||
Common stock, $ |
||||||||
Additional paid-in capital |
||||||||
Accumulated deficit |
( |
) | ( |
) | ||||
Accumulated other comprehensive loss |
( |
) | ||||||
|
|
|
|
|||||
Total UpHealth, Inc., stockholders’ equity |
||||||||
|
|
|
|
|||||
Noncontrolling interests |
||||||||
|
|
|
|
|||||
Total stockholders’ equity |
||||||||
|
|
|
|
|||||
Total liabilities and stockholders’ equity |
$ | $ | ||||||
|
|
|
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
Revenue |
||||||||||||||||
Services |
$ | $ | $ | $ | ||||||||||||
Licenses and subscriptions |
||||||||||||||||
Products |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total revenue |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Cost of goods and services |
||||||||||||||||
Services |
||||||||||||||||
License and subscriptions |
||||||||||||||||
Products |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total cost of goods and services |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Gross margin |
||||||||||||||||
Operating expenses |
||||||||||||||||
Sales and marketing |
||||||||||||||||
Research and development |
||||||||||||||||
General and administrative |
||||||||||||||||
Depreciation and amortization |
||||||||||||||||
Acquisition-related expenses |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total operating expenses |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Loss from operations |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Other income (expense) |
||||||||||||||||
Interest expense |
( |
) | ( |
) | ||||||||||||
Gain on consolidation of equity method investment |
||||||||||||||||
Gain on fair value of warrant liabilities |
||||||||||||||||
Gain on extinguishment of debt |
||||||||||||||||
Other expense, net, including interest income |
( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total other expense |
( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Loss before income tax benefit |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Income tax benefit |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net loss before loss from equity method investment |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Loss from equity method investment |
( |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net loss |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Less: net loss attributable to noncontrolling interests |
( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net loss attributable to UpHealth, Inc. |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
|
|
|
|
|
|
|
|
|||||||||
Net loss per share attributable to UpHealth, Inc.: |
||||||||||||||||
Basic |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
Diluted |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
Weighted average shares outstanding: |
||||||||||||||||
Basic |
||||||||||||||||
Diluted |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
Net loss |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
Foreign currency translation adjustments, net of tax |
( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Comprehensive loss |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Less: comprehensive loss attributable to noncontrolling interests |
( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Comprehensive loss attributable to UpHealth, Inc. |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
|
|
|
|
|
|
|
|
Common Stock |
Additional Paid-In Capital |
Accumulated Deficit |
Accumulated Other Comprehensive Loss |
Total UpHealth, Inc. Stockholders’ Equity |
Noncontrolling Interests |
Total Stockholders’ Equity |
||||||||||||||||||||||||||
Shares |
Amount |
|||||||||||||||||||||||||||||||
Balance at December 31, 2020(1) |
$ | $ | $ | ( |
) | $ | $ | $ | $ | |||||||||||||||||||||||
Issuance of common stock to consummate business combinations(1) |
— | — | ||||||||||||||||||||||||||||||
Net loss |
— | — | — | ( |
) | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||
Foreign currency translation adjustments |
— | — | — | — | ( |
) | ( |
) | — | ( |
) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance at March 31, 2021(1) |
$ | $ | $ | ( |
) | $ | ( |
) | $ | $ | $ | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Issuance of common stock to consummate business combinations |
— | — | ( |
) | ||||||||||||||||||||||||||||
Merger recapitalization |
— | — | — | |||||||||||||||||||||||||||||
PIPE common stock issuance |
— | — | — | — | ||||||||||||||||||||||||||||
Forward share repurchase agreement |
— | ( |
) | — | — | ( |
) | — | ( |
) | ||||||||||||||||||||||
Issuance of common stock for debt conversion |
— | — | — | — | ||||||||||||||||||||||||||||
Net loss |
— | — | ( |
) | — | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||
Foreign currency translation adjustments |
— | — | — | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance at June 30, 2021 |
$ | $ | $ | ( |
) | $ | ( |
) | $ | $ | $ | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Amounts as of March 31, 2021 and before that date differ from those published in prior consolidated financial statements as they were retrospectively adjusted as a result of the accounting for the Business Combinations (as defined below in Note 1). Specifically, the number of common shares outstanding during periods before the Business Combinations are computed on the basis of the number of common shares of UpHealth Holdings (accounting acquiror) during those periods multiplied by the exchange ratio established in the stock purchase agreement (1.00 UpHealth Holdings shares converted to 10.28 GigCapital2 shares). Common stock and additional paid-in capital were adjusted accordingly. |
Common Stock |
Additional Paid-In Capital |
Accumulated Deficit |
Accumulated Other Comprehensive Loss |
Total UpHealth, Inc. Stockholders’ Equity |
Noncontrolling Interests |
Total Stockholders’ Equity |
||||||||||||||||||||||||||
Shares |
Amount |
|||||||||||||||||||||||||||||||
Balance at January 1, 2020(1) |
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||
Issuance of common stock for formation(1) |
5 | ( |
) | — | — | — | — | — | ||||||||||||||||||||||||
Net loss |
— | — | — | ( |
) | — | ( |
) | — | ( |
) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance at March 31, 2020(1) |
$ | $ | ( |
) | $ | ( |
) | $ | $ | ( |
) | $ | $ | ( |
) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net loss |
— | — | — | ( |
) | — | ( |
) | — | ( |
) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance at June 30, 2020(1) |
$ | $ | ( |
) | $ | ( |
) | $ | $ | ( |
) | $ | $ | ( |
) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
||||||||
2021 |
2020 |
|||||||
Operating activities: |
||||||||
Net loss |
$ | ( |
) | $ | ( |
) | ||
Adjustments to reconcile net loss to net cash used in operating activities: |
||||||||
Depreciation and amortization |
||||||||
Amortization of debt issuance costs and discount on convertible debt |
||||||||
Gain on extinguishment of debt |
( |
) | ||||||
Loss from equity method investment |
||||||||
Gain on consolidation of equity method investment |
( |
) | ||||||
Gain on fair value of warrant liabilities |
( |
) | ||||||
Loss on disposal of property and equipment |
||||||||
Deferred income taxes |
( |
) | ||||||
Other |
( |
) | ||||||
Changes in operating assets and liabilities, net of effects of acquisitions: |
||||||||
Accounts receivable |
( |
) | ||||||
Inventories |
( |
) | ||||||
Prepaid expenses and other current assets |
||||||||
Accounts payable and accrued expenses |
||||||||
Income taxes payable |
||||||||
Deferred revenue |
||||||||
Proceeds from Provider Relief Funds |
||||||||
Due to (from) related parties |
||||||||
Other current liabilities |
( |
) | ||||||
|
|
|
|
|||||
Net cash used in operating activities |
( |
) | ||||||
|
|
|
|
|||||
Investing activities: |
||||||||
Purchases of property and equipment |
( |
) | ||||||
Due to (from) related parties |
||||||||
Net cash acquired in acquisition of businesses |
||||||||
|
|
|
|
|||||
Net cash provided by investing activities |
||||||||
|
|
|
|
|||||
Financing activities: |
||||||||
Proceeds from merger and recapitalization transaction |
||||||||
Proceeds from convertible debt |
||||||||
Repayments of debt |
( |
) | ||||||
Payments of debt issuance costs |
( |
) | ||||||
Payments of seller notes |
( |
) | ||||||
Payments of capital lease obligations |
( |
) | ||||||
Distribution to noncontrolling interest |
( |
) | ||||||
Payments of amount due to member |
( |
) | ||||||
|
|
|
|
|||||
Net cash provided by financing activities |
||||||||
|
|
|
|
|||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
( |
) | ||||||
|
|
|
|
|||||
Net increase in cash, cash equivalents, and restricted cash |
||||||||
Cash, cash equivalents, and restricted cash, beginning of period |
||||||||
|
|
|
|
|||||
Cash, cash equivalents, and restricted cash, end of period |
$ | $ | ||||||
|
|
|
|
|||||
Supplemental cash flow information: |
||||||||
Cash paid for interest, net of amounts capitalized |
$ | $ | ||||||
Cash paid for income taxes |
$ | $ | ||||||
Non-cash investing and financing activity: |
||||||||
Issuance of common stock for debt conversion |
$ | $ | ||||||
Issuance of common stock and promissory note to consummate TTC business combination |
$ | $ | ||||||
Issuance of common stock and promissory note to consummate Glocal business combination |
$ | $ | ||||||
Issuance of common stock and promissory note to consummate Innovations business combination |
$ | $ | ||||||
Issuance of common stock and promissory note to consummate Cloudbreak business combination |
$ | $ | ||||||
Reconciliation of cash, cash equivalents, and restricted cash: |
||||||||
Cash and cash equivalents |
$ | $ | ||||||
Restricted cash |
||||||||
|
|
|
|
|||||
Total cash, cash equivalents, and restricted cash: |
$ | $ | ||||||
|
|
|
|
• |
the fair value of assets acquired and liabilities assumed for business combinations; |
• |
the fair value of derivatives and warrants; |
• |
the fair value of stock awards issued; |
• |
the standalone selling price (“SSP”) of performance obligations for revenue contracts with multiple performance obligations; |
• |
the recognition, measurement, and valuation of current and deferred income taxes and uncertain tax positions; and |
• |
the identification and estimated economic lives of intangible assets. |
Land |
Indefinite | |||||||
Buildings |
years | |||||||
Medical and surgical equipment |
years | |||||||
Electrical and other equipment |
years | |||||||
Computer equipment, furniture and fixtures |
years | |||||||
Vehicles |
years |
• |
Services– |
• |
Services– set-up, configuration, implementation, and customization services |
• |
Services– |
• |
Services– |
• |
The timing of the receipt of the additional information that management could have used in its evaluation on or after the acquisition date, and |
• |
Whether management can identify a reason that a change to the provisional amounts is warranted and not driven by a discrete independent event occurring subsequent to the acquisition. |
(In thousands) | As of June 30, 2021 |
Measurement Period Adjustments |
As of November 20, 2020 |
|||||||||
Accounts receivable |
$ | $ | — | $ | ||||||||
Prepaid expenses and other |
— | |||||||||||
Identifiable intangible assets |
— | |||||||||||
Property and equipment |
— | |||||||||||
Other assets |
— | |||||||||||
Goodwill |
( |
) | ||||||||||
Total assets acquired |
( |
) | ||||||||||
Accounts payable |
— | |||||||||||
Accrued expenses and other current liabilities |
— | |||||||||||
Debt |
( |
) | ||||||||||
Deferred tax liabilities |
— | |||||||||||
Deferred revenue |
— | |||||||||||
Total liabilities assumed |
( |
) | ||||||||||
Net assets acquired |
$ | $ | ( |
) | $ | |||||||
Value |
Useful Life |
|||||||
(In thousands) | (in years) | |||||||
Definite-lived intangible assets–Trade names |
$ | |||||||
Definite-lived intangible assets–Technology and intellectual property |
||||||||
Definite-lived intangible assets–Customer relationships |
||||||||
Total fair value of identifiable intangible assets |
$ | |||||||
(In thousands) | As of June 30, 2021 |
Measurement Period Adjustments |
As of November 20, 2020 |
|||||||||
Accounts receivable |
$ | $ | — | $ | ||||||||
Inventories |
— | |||||||||||
Prepaid expenses and other |
— | |||||||||||
Identifiable intangible assets |
— | |||||||||||
Property and equipment |
— | |||||||||||
Other assets |
— | |||||||||||
Deferred tax assets |
— | |||||||||||
Goodwill |
||||||||||||
Total assets acquired |
||||||||||||
Accounts payable |
— | |||||||||||
Accrued expenses and other current liabilities |
||||||||||||
Debt |
— | |||||||||||
Total liabilities assumed |
||||||||||||
Net assets acquired |
$ | $ | ( |
) | $ | |||||||
Value |
Useful Life |
|||||||
(In thousands) | (in years) | |||||||
Definite-lived intangible assets–Trade names |
$ | |||||||
Total fair value of identifiable intangible assets |
$ | |||||||
(In thousands) | As of June 30, 2021 |
Measurement Period Adjustments |
As of January 25, 2021 |
|||||||||
Accounts receivable |
$ | $ | — | $ | ||||||||
Prepaid expenses and other |
— | |||||||||||
Identifiable intangible assets |
— | |||||||||||
Property and equipment |
— | |||||||||||
Other assets |
— | |||||||||||
Goodwill |
||||||||||||
Total assets acquired |
||||||||||||
Accounts payable |
— | |||||||||||
Accrued expenses and other current liabilities |
— | |||||||||||
Due to related parties |
||||||||||||
Debt |
( |
) | ||||||||||
Deferred tax liabilities |
— | |||||||||||
Total liabilities assumed |
||||||||||||
Net assets acquired |
$ | $ | ( |
) | $ | |||||||
Approximate Fair Value |
Estimated Useful Life |
|||||||
(In thousands) | (in years) | |||||||
Definite-life intangible assets–Trade names |
$ | |||||||
Total fair value of identifiable intangible assets |
$ | |||||||
(In thousands) | As of June 30, 2021 |
Measurement Period Adjustments |
As of March 26, 2021 |
|||||||||
Accounts receivable, net |
$ | $ | — | $ | ||||||||
Inventories |
— | |||||||||||
Identifiable intangible assets |
— | |||||||||||
Property, equipment, and work in progress |
— | |||||||||||
Other current assets, including short term advances |
— | |||||||||||
Other noncurrent assets, including long term advances |
— | |||||||||||
Goodwill |
||||||||||||
Total assets acquired |
||||||||||||
Accounts payable |
— | |||||||||||
Accrued expenses and other current liabilities |
— | |||||||||||
Deferred tax liability |
||||||||||||
Debt |
— | |||||||||||
Noncontrolling interest |
— | |||||||||||
Total liabilities assumed and noncontrolling interest |
||||||||||||
Net assets acquired |
$ | $ | ( |
) | $ | |||||||
Approximate Fair Value |
Estimated Useful Life |
|||||||
(In thousands) | (in years) | |||||||
Definite-lived intangible assets–Technology and intellectual property |
$ | |||||||
Total fair value of identifiable intangible assets |
$ | |||||||
(In thousands) | As of April 27, 2021 |
|||
Accounts receivable |
$ | |||
Inventories |
||||
Prepaid expenses and other |
||||
Identifiable intangible assets |
||||
Property and equipment |
||||
Other assets |
||||
Goodwill |
||||
Total assets acquired |
||||
Accounts payable |
||||
Accrued expenses and other current liabilities |
||||
Deferred revenue |
||||
Deferred tax liability |
||||
Debt |
||||
Total liabilities assumed |
||||
Net assets acquired |
$ | |||
Approximate Fair Value |
Estimated Useful Life |
|||||||
(In thousands) | (in years) | |||||||
Definite-lived intangible assets–Trade names |
$ | |||||||
Definite-lived intangible assets–Technology and intellectual property |
||||||||
Definite-lived intangible assets–Customer relationships |
||||||||
Total fair value of identifiable intangible assets |
$ | |||||||
(In thousands) | As of June 9, 2021 |
|||
Accounts receivable |
$ | |||
Prepaid expenses and other |
||||
Identifiable intangible assets |
||||
Property and equipment |
||||
Other assets |
||||
Goodwill |
||||
Total assets acquired |
||||
Accounts payable |
||||
Accrued expenses and other current liabilities |
||||
Deferred revenue |
||||
Deferred tax liability |
||||
Debt |
||||
Total liabilities assumed |
||||
Net assets acquired |
$ | |||
Approximate Fair Value |
Estimated Useful Life |
|||||||
(In thousands) | (in years) | |||||||
Definite-lived intangible assets–Trade names |
$ | |||||||
Definite-lived intangible assets–Technology and intellectual property |
||||||||
Definite-lived intangible assets–Customer relationships |
$ | |||||||
Total fair value of identifiable intangible assets |
$ | |||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
(In thousands) | 2021 |
2020 |
2021 |
2020 |
||||||||||||
Pro Forma |
||||||||||||||||
Revenues |
$ | $ | $ | $ | ||||||||||||
Net loss |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
Basic earnings per share |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
Diluted earnings per share |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) |
(In thousands) | June 30, 2021 |
December 31, 2020 |
||||||
Land |
$ | $ | — | |||||
Buildings |
— | |||||||
Leasehold improvements |
— | |||||||
Medical and surgical equipment |
— | |||||||
Electrical and other equipment |
||||||||
Computer equipment, furniture and fixtures |
||||||||
Vehicles |
||||||||
Construction in progress |
— | |||||||
Accumulated depreciation and amortization |
( |
) | ( |
) | ||||
Total property and equipment, net |
$ | $ | ||||||
(In thousands) | Goodwill |
|||
Balance at December 31, 2020 |
$ | |||
Business acquisition of TTC |
||||
Measurement period adjustment–TTC |
||||
Business acquisition of Glocal |
||||
Measurement period adjustment–Glocal |
||||
Measurement period adjustment–BHS |
||||
Measurement period adjustment–Thrasys |
( |
) | ||
Business acquisition of Innovations |
||||
Business acquisition of Cloudbreak |
||||
Foreign exchange |
( |
) | ||
Balance at June 30, 2021 |
$ | |||
(In thousands) | Trade Names |
Technology and Intellectual Property |
Customer Relationships |
Total |
||||||||||||
December 31, 2020 |
$ | $ | $ | $ | ||||||||||||
Additions |
||||||||||||||||
Amortization |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Foreign exchange |
— | ( |
) | — | ( |
) | ||||||||||
June 30, 2021 |
$ | $ | $ | $ | ||||||||||||
(In thousands) | Trade Name Amortization |
Technology and Intellectual Property Amortization |
Customer Relationships Amortization |
Total |
||||||||||||
Remaining 2021 |
$ | $ | $ | $ | ||||||||||||
2022 |
||||||||||||||||
2023 |
||||||||||||||||
2024 |
||||||||||||||||
2025 |
||||||||||||||||
Thereafter |
||||||||||||||||
$ | $ | $ | $ | |||||||||||||
(In thousands) | June 30, 2021 |
December 31, 2020 |
||||||
Accrued professional fees |
$ | $ | ||||||
Accrued software licenses |
||||||||
Accrued interest on debt |
||||||||
Accrued payroll and bonuses |
||||||||
Accrued taxes in connection with shareholder distribution |
||||||||
Other accruals |
||||||||
Total accrued expenses |
$ | $ | ||||||
(In thousands) | June 30, 2021 |
December 31, 2020 |
||||||
Convertible notes |
$ | $ | ||||||
Other debt facilities (various maturities and interest rates) |
||||||||
Paycheck Protection Program loans |
||||||||
Provider Relief Funds |
||||||||
Seller notes |
||||||||
Total debt |
||||||||
Less: unamortized original issue discount and derivative liability |
( |
) | ||||||
Total debt, net of unamortized original issued discount and derivative liability |
||||||||
Less: current portion of debt |
( |
) | ( |
) | ||||
Noncurrent portion of debt |
$ | $ | ||||||
(In thousands) | ||||
Remaining 2021 |
$ | |||
2022 |
||||
2023 |
||||
2024 |
||||
2025 |
||||
Thereafter |
$ | |||
Total |
$ | |||
• |
Quoted prices for similar assets/liabilities in active markets; |
• |
Quoted prices for identical or similar assets/liabilities in non-active markets (e.g., few transactions, limited information, non-current prices, high variability over time); |
• |
Inputs other than quoted prices that are observable for the asset/liability (e.g., interest rates, yield curves, volatilities, default rates); and |
• |
Inputs that are derived principally from or corroborated by other observable market data. |
June 30, 2021 |
||||||||||||||||
(In thousands) | Level 1 |
Level 2 |
Level 3 |
Total |
||||||||||||
Liabilities: |
||||||||||||||||
Derivative liability |
$ | $ | $ | $ | ||||||||||||
Warrant liability |
$ | $ | $ | $ | ||||||||||||
$ | $ | $ | $ | |||||||||||||
June 30, 2021 |
||||
Stock price |
$ | |||
Volatility |
% | |||
Risk free rate |
% | |||
Exercise price |
$ | |||
Expected life (in years) |
||||
Conversion periods |
||||
Future share price |
$ |
(In thousands) | Three Months Ended June 30, 2021 |
Six Months Ended June 30, 2021 |
||||||
Services |
$ | $ | ||||||
Licenses and subscriptions |
||||||||
Products |
||||||||
Total revenue |
$ | $ | ||||||
(In thousands) | Three Months Ended June 30, 2021 |
Six Months Ended June 30, 2021 |
||||||
Americas |
$ | $ | ||||||
Europe |
||||||||
Asia |
||||||||
Total revenue |
$ | $ | ||||||
(In thousands) | Six Months Ended June 30, 2021 |
|||
Unbilled receivables, beginning of period |
$ | |||
Reclassifications to billed receivables |
( |
) | ||
Revenues recognized in excess of period billings |
||||
Unbilled receivables, end of period |
$ | |||
(In thousands) | Six Months Ended June 30, 2021 |
|||
Deferred revenue, beginning of period |
$ | |||
Revenues recognized from balances held at the beginning of the period |
( |
) | ||
Revenue deferred from period collections on unfulfilled performance obligations |
||||
Deferred revenue, end of period |
$ | |||
(In thousands) | Total |
Remaining 2021 |
2022 - 2024 |
|||||||||
Subscriptions |
$ | |||||||||||
Licenses |
||||||||||||
SaaS and hosting |
||||||||||||
Program management and services |
||||||||||||
$ | ||||||||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
(In thousands, except per share data) | 2021 |
2020 |
2021 |
2020 |
||||||||||||
Numerator: |
||||||||||||||||
Net loss attributable to UpHealth, Inc. |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
Denominator: |
||||||||||||||||
Weighted average shares outstanding(1) |
||||||||||||||||
Diluted effect of stock awards |
||||||||||||||||
Weighted average shares outstanding assuming dilution |
||||||||||||||||
Net loss per share attributable to UpHealth, Inc.: |
||||||||||||||||
Basic |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
Diluted |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
(1) |
The shares and earnings per share available to our common stock holders, prior to the Business Combinations, have been recasted to reflect the exchange ratio established in the Business Combinations (1.0 UpHealth Holdings share to Business Combinations |
• |
Integrated Care Management–through our Thrasys subsidiary; |
• |
Global Telehealth–through our Glocal and Cloudbreak subsidiaries; |
• |
Digital Pharmacy–through our Innovations subsidiary; |
• |
Behavioral Health–through our BHS and TTC subsidiaries; and |
• |
Corporate–through UpHealth and our UpHealth Holdings subsidiary. |
In thousands | Three Months Ended June 30, 2021 |
Six Months Ended June 30, 2021 |
||||||
Integrated Care Management |
$ | $ | ||||||
Global Telehealth |
||||||||
Digital Pharmacy |
||||||||
Behavioral Health |
||||||||
Total revenue |
$ | $ | ||||||
In thousands | Three Months Ended June 30, 2021 |
Six Months Ended June 30, 2021 |
||||||
Integrated Care Management |
$ | $ | ||||||
Global Telehealth |
||||||||
Digital Pharmacy |
||||||||
Behavioral Health |
||||||||
Total gross margin |
$ | $ | ||||||
In thousands | June 30, 2021 |
December 31, 2020 |
||||||
Integrated Care Management |
$ | |||||||
Global Telehealth |
||||||||
Digital Pharmacy |
||||||||
Behavioral Health |
||||||||
Corporate |
||||||||
Total assets |
$ | $ | ||||||
(In thousands) | Related Party |
Third-Party |
Total |
|||||||||
Remaining 2021 |
$ | $ | $ | |||||||||
2022 |
||||||||||||
2023 |
||||||||||||
2024 |
||||||||||||
2025 |
||||||||||||
Thereafter |
||||||||||||
$ | $ | $ | ||||||||||
Thrasys, Inc. | Confidential | |
|
Thrasys, Inc. | Confidential | |
|
F-80 | ||||||||
1 | F-81 | |||||||
2 | F-82 | |||||||
3 | F-83 | |||||||
4 | F-84 | |||||||
F-85 | ||||||||
1 | F-85 | |||||||
2 | F-96 | |||||||
3 | F-96 | |||||||
4 | F-97 | |||||||
5 | F-97 | |||||||
6 | F-97 | |||||||
7 | F-98 | |||||||
8 | F-99 | |||||||
9 | F-99 | |||||||
10 | F-100 | |||||||
11 | F-100 | |||||||
12 | F-100 | |||||||
13 | F-102 |
Thrasys, Inc. | Confidential | |
|
Thrasys, Inc. | Confidential | |
|
1 |
Balance Sheets |
AS OF NOVEMBER 20, 2020 AND DECEMBER 31, 2019 |
||||||||
11/20/2020 |
12/31/2019 |
|||||||
ASSETS |
||||||||
CURRENT ASSETS: |
||||||||
Cash |
$ | 1,953,128 | $ | 1,619,098 | ||||
Restricted cash |
530,500 | — | ||||||
Accounts receivable |
3,490,738 | 1,628,551 | ||||||
Prepaid expenses and other |
3,001,150 | 41,146 | ||||||
|
|
|
|
|||||
Total current assets |
8,975,516 | 3,288,795 | ||||||
PROPERTY AND EQUIPMENT, net |
101,246 | 77,622 | ||||||
DEPOSITS AND OTHER LONG TERM ASSETS |
19,374 | 2,823,609 | ||||||
$ | 9,096,136 | $ | 6,190,026 | |||||
|
|
|
|
|||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT |
||||||||
CURRENT LIABILITIES |
||||||||
Accounts payable |
$ | 1,778,849 | $ | 641,384 | ||||
Accrued liabilities |
5,321,761 | 5,384,345 | ||||||
Deferred revenue |
2,405,877 | 1,752,632 | ||||||
Current portion of related party long-term debt |
39,000 | — | ||||||
Current portion of Paycheck Protection Program loan |
196,936 | — | ||||||
|
|
|
|
|||||
Total current liabilities |
9,742,423 | 7,778,361 | ||||||
RELATED PARTY LONG-TERM DEBT, net of discount and current portion |
381,283 | 1,114,000 | ||||||
PAYCHECK PROTECTION PROGRAM LOAN, net of current portion |
343,564 | — | ||||||
CONVERTIBLE NOTES PAYABLE TO RELATED PARTY |
— | 1,900,000 | ||||||
DERIVATIVE LIABILITY RELATED TO CONVERTIBLE DEBT |
— | 668,000 | ||||||
Total liabilities |
10,467,270 | 11,460,361 | ||||||
|
|
|
|
|||||
STOCKHOLDERS’ DEFICIT: |
||||||||
Common stock, no par value, 20,000,000 shares authorized |
6,699,222 | 1,863,031 | ||||||
Accumulated deficit |
-8,070,356 | -7,133,366 | ||||||
|
|
|
|
|||||
Total stockholders’ deficit |
-1,371,134 | -5,270,335 | ||||||
$ | 9,096,136 | $ | 6,190,026 | |||||
|
|
|
|
Thrasys, Inc. | Confidential | |
|
2 |
Statements of Operations |
FOR THE PERIOD ENDED NOVEMBER 20, 2020 AND YEAR ENDED DECEMBER 31, 2019 |
| |||||||
Period ended 11/20/2020 |
Year ended 12/31/2019 |
|||||||
REVENUES |
||||||||
License revenues |
$ | 7,706,201 | $ | 4,933,226 | ||||
Services revenues |
5,798,366 | 8,527,521 | ||||||
Royalty revenues |
— | 430,769 | ||||||
|
|
|
|
|||||
TOTAL REVENUES |
13,504,567 | 13,891,516 | ||||||
OPERATING EXPENSES |
||||||||
Cost of Sales |
1,686,582 | 1,456,736 | ||||||
Research & Development |
6,584,979 | 4,992,139 | ||||||
Sales & Marketing |
315,747 | 340,468 | ||||||
General & Administrative |
3,350,243 | 1,880,430 | ||||||
Depreciation expense |
26,626 | 30,311 | ||||||
|
|
|
|
|||||
TOTAL OPERATING EXPENSES |
11,964,177 | 8,700,084 | ||||||
INCOME FROM OPERATIONS |
1,540,390 | 5,191,432 | ||||||
OTHER INCOME (EXPENSE): |
||||||||
Interest income |
983 | 3,516 | ||||||
Interest expense |
(297,103 | ) | (734,607 | ) | ||||
Other expense |
— | (20,800 | ) | |||||
|
|
|
|
|||||
(296,120 | ) | (751,891 | ) | |||||
INCOME BEFORE INCOME TAXES |
1,244,270 | 4,439,541 | ||||||
INCOME TAXES |
0 | 0 | ||||||
NET INCOME |
$ | 1,244,270 | $ | 4,439,541 |
Thrasys, Inc. | Confidential | |
|
3 |
Statements of Stockholders ’ Deficit |
Common Stock |
Additional Paid in Capital |
Total Common Stock |
Accumulated Deficit |
Total Stockholders’ Deficit |
||||||||||||||||||||
Shares |
Amount |
|||||||||||||||||||||||
Balance at December 31, 2018 |
6,124,226 | $ | 1,763,579 | $ | 81,833 | $ | 1,845,412 | $ | (11,572,907 | ) | $ | (9,727,495 | ) | |||||||||||
Options and warrants expense |
— | — | 18,599 | 18,599 | — | 18,599 | ||||||||||||||||||
Loan to a shareholder |
— | (980 | ) | — | (980 | ) | — | (980 | ) | |||||||||||||||
Net Income |
— | — | — | — | 4,439,541 | 4,439,541 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance at December 31, 2019 |
6,124,226 | 1,762,599 | 100,432 | 1,863,031 | (7,133,366 | ) | (5,270,335 | ) | ||||||||||||||||
Adjustment for adoption of accounting standard (ASC 606) |
(688,260 | ) | (688,260 | ) | ||||||||||||||||||||
Loan to a shareholder |
(732 | ) | (732 | ) | (732 | ) | ||||||||||||||||||
Options and warrants expense |
6,508 | 6,508 | 6,508 | |||||||||||||||||||||
Exercise of stock options |
36,500 | 34,100 | 34,100 | 34,100 | ||||||||||||||||||||
Exercise of warrants |
228,370 | 1,543,515 | 1,543,515 | 1,543,515 | ||||||||||||||||||||
Conversion of convertible notes into Common Stock |
249,980 | 2,499,800 | 753,000 | 3,252,800 | 3,252,800 | |||||||||||||||||||
Distributions declared |
(1,493,000 | ) | (1,493,000 | ) | ||||||||||||||||||||
Net Income |
1,244,270 | 1,244,270 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance at November 20, 2020 |
6,639,076 | $ | 5,839,282 | $ | 859,940 | $ | 6,699,222 | $ | (8,070,356 | ) | $ | (1,371,134 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Thrasys, Inc. | Confidential | |
|
4 |
Statements of Cash Flows |
Period ended 11/20/2020 |
Year ended 12/31/2019 |
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||
Net Income |
$ | 1,244,270 | $ | 4,439,541 | ||||
Adjustments from Net Income: |
||||||||
Depreciation expense |
26,626 | 30,311 | ||||||
Options and warrant expense |
6,508 | 18,599 | ||||||
Amortization of debt discount |
0 | 21,724 | ||||||
Change in fair value of derivative liability related to convertible debt |
85,000 | 341,000 | ||||||
Changes In: |
||||||||
Accounts receivable |
(1,884,424 | ) | (1,286,277 | ) | ||||
Prepaid expenses and other assets |
(155,768 | ) | (2,394,589 | ) | ||||
Deferred revenue |
(12,780 | ) | (1,402,787 | ) | ||||
Accounts payable and accrued expenses |
1,106,480 | 2,588,291 | ||||||
|
|
|
|
|||||
Net cash provided by operating activities |
415,912 | 2,355,813 | ||||||
|
|
|
|
|||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||
Purchase of property and equipment |
(50,250 | ) | (6,094 | ) | ||||
|
|
|
|
|||||
Net cash used by investing activities |
(50,250 | ) | (6,094 | ) | ||||
|
|
|
|
|||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||
Repayment of debt |
(1,075,000 | ) | (850,000 | ) | ||||
Proceeds from issuance of PPP and EIDL loans |
540,500 | — | ||||||
Loan to a minority shareholder |
(732 | ) | (980 | ) | ||||
Proceeds from exercise of warrants and stock options |
1,034,100 | — | ||||||
|
|
|
|
|||||
Net cash provided/(used) by financing activities |
498,868 | (850,980 | ) | |||||
|
|
|
|
|||||
NET INCREASE IN CASH |
864,530 | 1,498,739 | ||||||
CASH, beginning of period |
1,619,098 | 120,359 | ||||||
CASH, end of period |
$ | 2,483,628 | $ | 1,619,098 | ||||
|
|
|
|
|||||
Supplemental cash flow information: |
||||||||
Interest paid |
64,051 | 36,552 | ||||||
Taxes paid |
— | — | ||||||
Significant noncash transactions: |
||||||||
Conversion of convertible debt, conversion option and accrued interest to equity |
$ | 3,252,800 | — | |||||
Issuance of note payable in settlement of accounts payable |
381,283 | — | ||||||
Set-off of accounts payable and accrued interest against warrant exercise |
543,516 | — | ||||||
Accrued distributions to shareholders |
1,493,000 | |||||||
Cumulative effect of change in accounting principle |
688,260 |
Thrasys, Inc. | Confidential | |
|
1 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
1.1 | Nature of Business |
• | Integrate and normalize information across heterogeneous data sources to create 360-degree view of patients and members; |
• | Deploy advanced analytics to gain insight into health risks for individuals and populations; |
• | Qualify individuals and groups for enrollment into care management programs; |
• | Manage programs with interdisciplinary teams, configurable rules and workflows, embedded intelligence, and guidelines; |
Thrasys, Inc. | Confidential | |
|
• | Monitor and measure critical success factors—outcomes, costs, quality, performance—and compliance with regulatory requirements; |
1.2 | Accounts Receivable |
1.3 | Prepaid expenses and Other |
1.4 | Property and Equipment |
Information technology equipment | Three years | |
Office furniture & other equipment | Seven years | |
Vehicles | Seven years |
1.5 | Long lived asset impairment |
Thrasys, Inc. | Confidential | |
|
Period Ended November 20 2020 |
||||
Subscriptions and Licenses |
$ | 7,706,201 | ||
Implementation and Professional Services |
5,798,366 | |||
|
|
|||
$ | 13,504,567 | |||
|
|
Period Ended November 20 2020 |
||||
Americas |
$ | 10,706,671 | ||
Europe |
2,797,896 | |||
|
|
|||
$ | 13,504,567 | |||
|
|
Thrasys, Inc. | Confidential | |
|
Deferred Revenue Period Ending |
||||
November 20, 2020 |
||||
Beginning Balance, January 1, 2020 |
$ | (1,924 | ) | |
Revenues recognized from balances held at the beginning of the period |
913 | |||
Revenues deferred from period collections on unfulfilled performance obligations |
(1,395 | ) | ||
|
|
|||
Ending Balance, November 20, 2020 |
$ | (2,406 | ) | |
|
|
Thrasys, Inc. | Confidential | |
|
Remaining Performance Obligations |
Total |
Current |
Future |
|||||||||
Subscriptions |
$ | 1,017 | 783 | 234 | ||||||||
Licenses |
8,639 | 2,580 | 6,059 | |||||||||
SaaS and Hosting |
49 | 49 | — | |||||||||
Program Management and Services |
1,331 | 1,331 | — | |||||||||
|
|
|
|
|
|
|||||||
$ | 11,036 | 4,742 | 6,294 | |||||||||
|
|
|
|
|
|
• | Subscription revenues, which are comprised of subscription fees from customers accessing the Company’s cloud computing services |
• | Services revenues |
• | Royalty income |
• | Support and maintenance |
• | Sale of intellectual property assets |
• | There is persuasive evidence of an arrangement; |
• | The service has been or is being provided to the customer; |
• | The collection of the fees is reasonably assured; and |
• | The amount of fees to be paid by the customer is fixed or determinable |
Thrasys, Inc. | Confidential | |
|
Thrasys, Inc. | Confidential | |
|
1.7 | Income Taxes |
1.8 | Cash and Cash equivalents |
1.9 | Restricted Cash |
1.10 | Credit Risk |
Thrasys, Inc. | Confidential | |
|
1.11 | Estimates |
1.12 | Fair Value of Financial Instruments |
Level Input |
Input Definition | |
Level 1 | Inputs are unadjusted quoted prices for identical assets or liabilities in active markets at the measurement date. | |
Level 2 | Inputs other than quoted prices included in Level 1 that are observable for the asset or liability through corroboration with market data at the measurement date. | |
Level 3 | Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. |
Thrasys, Inc. | Confidential | |
|
Period ended November 20, 2020 |
Year ended December 31, 2019 |
|||||||
Expected stock price |
$10 | $ | 2.8686 | |||||
Estimated term (in years) |
1.1 years | 2 years | ||||||
Risk free rate |
0.12 | % | 1.58 | % | ||||
Expected volatility |
70.0 | % | 47.5 | % |
Fair value of derivative liability relating to convertible debt |
||||
Amount | ||||
Balance at December 31, 2018 |
$ | 327,000 | ||
Increase in fair value |
341,000 | |||
Balance at December 31, 2019 |
668,000 | |||
Increase in fair value |
85,000 | |||
Transferred to equity upon conversion of notes |
$ | (753,000 | ) | |
|
|
|||
Balance at November 20, 2020 |
$ | — | ||
|
|
1.13 | Stock Based Compensation |
Year Ended December 31 |
2019 | |||
Stock price per share |
$ | 1.62 | ||
Option period (in years) |
10 years | |||
Estimated term (in years) |
6.7 years | |||
Interest rate |
2.1 | % | ||
Expected volatility |
60.0 | % |
Thrasys, Inc. | Confidential | |
|
1.14 | Software Development Costs |
1.15 | Research and Development Costs |
1.16 | Recently Issued Accounting Standards |
1.17 | Recently Adopted Accounting Standards |
Thrasys, Inc. | Confidential | |
|
As reported on December 31 2019 |
Impact of adoption |
As adjusted on January 1 2020 |
||||||||||
Assets: |
||||||||||||
Contract assets, current |
$ | 32,643 | 22,236 | 54,879 | ||||||||
Liabilities: |
||||||||||||
Deferred revenue, current |
$ | 1,752,632 | 666,024 | 2,418,656 | ||||||||
Stockholders’ equity: |
||||||||||||
Accumulated deficit |
$ | (7,133,366 | ) | (688,260 | ) | (7,821,626 | ) |
November 20, 2020 |
||||||||||||
As reported |
Adjustments |
Balances without adoption of Topic 606 |
||||||||||
Assets: |
||||||||||||
Contract assets |
57,557 | (662,814 | ) | 720,371 | ||||||||
Liabilities and stockholders’ equity |
||||||||||||
Deferred revenue, current |
2,405,877 | 185,854 | 2,220,023 | |||||||||
Stockholders’ equity: |
||||||||||||
Accumulated deficit |
$ | (8,070,356 | ) | (476,960 | ) | (7,593,396 | ) |
Period ended November 20, 2020 |
||||||||||||
As reported |
Adjustments |
Balance without adoption of Topic 606 |
||||||||||
Revenues |
|
|||||||||||
License revenues |
$ | 7,706,201 | (169,493 | ) | 7,536,708 | |||||||
Services revenues |
5,798,366 | (41,807 | ) | 5,756,559 | ||||||||
|
|
|
|
|
|
|||||||
Total revenues |
13,504,567 | (211,300 | ) | 13,293,267 | ||||||||
|
|
|
|
|
|
|||||||
Income from Operations |
1,540,390 | (211,300 | ) | 1,329,090 | ||||||||
|
|
|
|
|
|
|||||||
Net Income |
$ | 1,244,270 | (211,300 | ) | 1,032,970 | |||||||
|
|
|
|
|
|
Thrasys, Inc. | Confidential | |
|
Period ended November 20, 2020 |
||||||||||||
As reported |
Adjustments |
Balance without adoption of ASC 606 |
||||||||||
Statement of cash flows: |
||||||||||||
Net Income |
$ | 1,244,270 | (211,300 | ) | 1,032,970 | |||||||
Adjustments to Net Income |
||||||||||||
Cash provided by operating activities: |
||||||||||||
Changes in operating assets and liabilities: |
||||||||||||
Accounts receivable and contract assets |
(1,884,424 | ) | 640,578 | (1,243,846 | ) | |||||||
Deferred revenue |
(12,780 | ) | (851,878 | ) | (864,658 | ) |
2 |
PROPERTY AND EQUIPMENT |
2020 |
2019 |
|||||||
Computer equipment |
$ | 121,312 | 121,312 | |||||
Furnitures & Fixtures |
86,152 | 86,152 | ||||||
Other Equipment |
91,992 | 91,992 | ||||||
Vehicles |
50,250 | — | ||||||
Artwork |
13,000 | 13,000 | ||||||
|
|
|
|
|||||
362,706 | 312,456 | |||||||
Less accumulated depreciation |
261,460 | 234,834 | ||||||
|
|
|
|
|||||
Total |
$ | 101,246 | 77,622 | |||||
|
|
|
|
3 |
ACCRUED LIABILITIES |
2020 |
2019 |
|||||||
Accrued legal expenses |
$ | 240,267 | $ | 299,988 | ||||
Accrued consulting fees |
$ | 1,350,953 | $ | 1,343,678 | ||||
Accrued software licenses |
$ | 888,419 | $ | 2,099,740 | ||||
Accrued interest on debt |
$ | 9,113 | $ | 966,918 | ||||
Accrued bonuses |
$ | 447,855 | 0 | |||||
Accrued shareholder distribution |
$ | 1,493,000 | 0 | |||||
Accrued tax liability |
$ | 200,000 | $ | 200,000 | ||||
Other accruals |
$ | 692,154 | $ | 474,021 | ||||
Total |
$ | 5,321,761 | $ | 5,384,345 |
Thrasys, Inc. | Confidential | |
|
4 |
RELATED PARTY DEBT |
Period ended November 20, 2020 |
Year ended December 31, 2019 |
|||||||
Stock price per share |
$ | 11.42 | $ | 1.62 | ||||
Warrant period (in years) |
5 years | 6 years | ||||||
Estimated term (in years) |
5 years | 6 years | ||||||
Interest rate |
0.30 | % | 2.1 | % | ||||
Expected volatility |
60.0 | % | 60.0 | % |
5 |
RELATED PARTY CONVERTIBLE NOTES |
6 |
VARIAN AGREEMENT |
Thrasys, Inc. | Confidential | |
|
7 |
PROVISION FOR INCOME TAXES |
2019 |
2020 |
|||||||
Deferred tax assets |
847,515 | 957,515 | ||||||
Less valuation allowance |
(847,515 | ) | (957,515 | ) | ||||
0 | 0 |
Thrasys, Inc. | Confidential | |
|
8 |
RETIREMENT PLANS |
9 |
COMMITMENTS AND CONTINGENCIES |
9.1 | Facility Lease |
Years Ending December 31 |
Amount | |||
2020 (remaining) |
$ | 32,399 | ||
2021 |
331,035 | |||
2022 |
170,483 | |||
|
|
|||
$ | 533,917 | |||
|
|
9.2 | Indemnification |
9.3 | Warranty |
Thrasys, Inc. | Confidential | |
|
9.4 | Contingencies |
10 |
PAYCHECK PROTECTION PROGRAM LOAN |
11 |
DEPOSITS AND OTHER CURRENT ASSETS |
12 |
MAJOR CUSTOMERS |
13 |
STOCKHOLDERS ’ EQUITY |
13.1 | Common Stock |
Thrasys, Inc. | Confidential | |
|
13.2 | Equity Incentive Plan |
2020 |
2019 |
|||||||||||||||
Shares |
Weighted average exercise price |
Shares |
Weighted average exercise price |
|||||||||||||
Outstanding at January 1 |
36,500 | $ | 0.93 | 29,000 | $ | 1.15 | ||||||||||
Granted |
— | — | 7,500 | 0.10 | ||||||||||||
Exercised |
(36,500 | ) | 0.93 | — | — | |||||||||||
Forfeited/expired |
— | — | — | — | ||||||||||||
|
|
|
|
|||||||||||||
End of period |
— | — | 36,500 | 0.93 | ||||||||||||
|
|
|
|
|||||||||||||
Exercisable |
— | $ | — | 36,500 | $ | 0.93 |
13.3 | Warrants |
2020 |
2019 |
|||||||||||||||
Shares |
Weighted average exercise price |
Shares |
Weighted average exercise price |
|||||||||||||
Outstanding at January 1 |
149,026 | $ | 12.80 | 147,026 | $ | 12.96 | ||||||||||
Granted |
79,344 | 11.42 | 2,000 | 1.00 | ||||||||||||
Exercised |
(228,370 | ) | 12.32 | — | — | |||||||||||
Forfeited/expired |
— | — | — | — | ||||||||||||
|
|
|
|
|||||||||||||
Outstanding at End of period |
— | — | 149,026 | 12.80 | ||||||||||||
|
|
|
|
|||||||||||||
Exercisable |
— | $ | — | 149,026 | $ | 12.80 |
Thrasys, Inc. | Confidential | |
|
14 |
SUBSEQUENT EVENTS |
F-105 | ||||
F-107 | ||||
F-108 | ||||
F-109 | ||||
F-110 |
D. K. CHHAJER & CO. CHARTERED ACCOUNTANTS |
NILHAT HOUSE 11, R. N. MUKHERJEE ROAD GROUND FL., KOLKATA- 700 001 PHONES: 033-2262 7280 / 2262 7279TELE-FAX : 033 2230-6106E-mail.: dkchhaJer @gmall . com kolkata@dkc lndla.com |
(i) | As discussed in Note 1 (x) to the financial statements, the Company has incurred losses in its initial stage of operations resulting in net liquidity constraints. Management’s evaluation of the events and conditions and management’s plans to mitigate these matters are also described in Note 1 (x). Our opinion is not modified with respect to this matter. |
(ii) | The management has discussed in Note 42 of the financial statements regarding the uncertainties and the management’s assessment of the financial impact due to the lock-down and other restrictions and conditions related to the COVID-19 pandemic situation, for which a definitive assessment of the impact is highly dependent upon circumstances / developments as they evolve in the subsequent periods. Our opinion is not modified with respect to this matter. |
(iii) | Generally accepted accounting principles in India vary in certain significant respects from accounting principles generally accepted in the United States of America. Information relating to the nature and effect of such differences is presented in note 41 to the consolidated financial statements. Our opinion is not modified with respect to this matter. |
Note |
31 March 2020 |
31 March 2019 |
||||||||||
EQUITY AND LIABILITIES |
||||||||||||
Shareholders’ funds |
||||||||||||
Share capital |
2 |
6,812,652 |
6,812,652 |
|||||||||
Reserves and surplus |
3 |
713,832 |
(1,001,696 |
) | ||||||||
|
|
|
|
|||||||||
7,526,484 |
5,810,956 |
|||||||||||
Minority interest |
34 |
1,728,427 |
1,705,624 |
|||||||||
Non-current liabilities |
||||||||||||
Long-term borrowings |
4 |
1,578,912 |
13,281,012 |
|||||||||
Long-term provisions |
5 |
129,685 |
111,200 |
|||||||||
|
|
|
|
|||||||||
1,708,597 |
13,392,212 |
|||||||||||
Current liabilities |
||||||||||||
Short-term borrowings |
6 |
3,892,608 |
3,943,193 |
|||||||||
Trade payables |
7 |
|||||||||||
—total outstanding dues of micro enterprises and small enterprises |
— |
— |
||||||||||
—total outstanding dues of creditors other than micro enterprises and small enterprises |
1,471,145 |
2,418,496 |
||||||||||
Other current liabilities |
8 |
23,834,963 |
13,901,348 |
|||||||||
Short-term provisions |
5 |
7,651 |
8,769 |
|||||||||
|
|
|
|
|||||||||
29,206,367 |
20,271,806 |
|||||||||||
|
|
|
|
|||||||||
TOTAL |
40,169,875 |
41,180,599 |
||||||||||
|
|
|
|
|||||||||
ASSETS |
||||||||||||
Non-current assets |
||||||||||||
Goodwill |
9 |
459,982 |
598,136 |
|||||||||
Property, plant and equipment |
10 |
24,378,417 |
27,108,428 |
|||||||||
Intangible assets |
11 |
2,865,890 |
2,991,695 |
|||||||||
Capital work-in-progress |
4,637,925 |
4,390,896 |
||||||||||
Deferred tax assets |
30 |
— |
— |
|||||||||
Long-term loans and advances |
12 |
1,125,061 |
1,137,008 |
|||||||||
Other non-current assets |
13 |
20,626 |
54,393 |
|||||||||
|
|
|
|
|||||||||
33,487,901 |
36,280,556 |
|||||||||||
Current assets |
||||||||||||
Inventories |
14 |
269,296 |
259,664 |
|||||||||
Trade receivables |
15 |
4,719,956 |
3,257,573 |
|||||||||
Cash and bank balances |
16 |
171,867 |
621,199 |
|||||||||
Short-term loans and advances |
17 |
1,008,242 |
418,651 |
|||||||||
Other current assets |
18 |
512,613 |
342,956 |
|||||||||
|
|
|
|
|||||||||
6,681,974 |
4,900,043 |
|||||||||||
|
|
|
|
|||||||||
TOTAL |
40,169,875 |
41,180,599 |
||||||||||
|
|
|
|
|||||||||
Significant accounting policies |
1 |
For D.K. CHHAJER & CO. Chartered Accountants Firm’s Registration Number: 304138E |
For and on behalf of the Board of Directors |
Tapan K Mukhopadhyay Partner |
Dr. Syed Sabahat Azim Director |
Richa Sana Azim Director | ||
Membership No.: 017483 |
DIN: 03122895 |
DIN: 02609003 | ||
Place: Kolkata Date: 30th December 2020 |
For the year ended | For the year ended | |||||||||||
Note |
31 March 2020 |
31 March 2019 | ||||||||||
Revenue from operations |
19 |
9,057,344 |
7,220,982 | |||||||||
Other income |
20 |
2,136,145 |
57,205 | |||||||||
|
|
|
|
|||||||||
Total revenue |
11,193,489 |
7,278,187 | ||||||||||
|
|
|
|
|||||||||
Expenses |
||||||||||||
Purchase |
21 |
961,711 |
1,239,083 | |||||||||
Course operating expenses |
22 |
— |
— | |||||||||
Changes in inventories |
23 |
(38,620 |
) |
(50,666 | ) | |||||||
Employee benefits expense |
24 |
1,437,745 |
2,167,548 | |||||||||
Finance costs |
25 |
2,150,174 |
2,778,598 | |||||||||
Depreciation and amortisation |
26 |
1,404,801 |
1,183,020 | |||||||||
Other expenses |
27 |
2,870,913 |
4,427,102 | |||||||||
|
|
|
|
|||||||||
Total expenses |
8,786,723 |
11,744,683 | ||||||||||
|
|
|
|
|||||||||
Profit/(Loss) before tax |
2,406,766 |
(4,466,496 | ) | |||||||||
|
|
|
|
|||||||||
Income tax expense |
||||||||||||
Current tax |
— |
6,123 | ||||||||||
Deferred tax |
30 |
— |
— | |||||||||
|
|
|
|
|||||||||
Profit/(Loss) after tax (before adjustment of minority interest) |
2,406,766 |
(4,472,620 |
) | |||||||||
|
|
|
|
|||||||||
Minority Interest |
22,802 | (462,252 | ) | |||||||||
|
|
|
|
|||||||||
Profit/(Loss) for the year |
2,383,964 |
(4,010,368 | ) | |||||||||
|
|
|
|
|||||||||
Earnings/(loss) per equity share [nominal value of share INR 10 each (Previous year INR 10 each)] |
28 |
|||||||||||
Basic |
4.84 |
(8.14 | ) | |||||||||
Diluted |
0.09 |
(8.14 | ) | |||||||||
Significant accounting policies |
1 |
For D.K. CHHAJER & CO. Chartered Accountants Firm’s Registration Number: 304138E |
For and on behalf of the Board of Directors |
Tapan K Mukhopadhyay Partner |
Dr. Syed Sabahat Azim Director |
Richa Sana Azim Director | ||
Membership No.: 017483 | DIN: 03122895 | DIN: 02609003 | ||
Place: Kolkata Date: 30th December 2020 |
31 March 2020 |
31 March 2019 | |||||||||
A. |
Cash flow from operating activities |
|||||||||
Profit/(Loss) before tax |
2,406,766 |
(4,466,496 | ) | |||||||
Adjustments for : |
||||||||||
Depreciation and amortisation |
1,404,801 |
1,183,020 | ||||||||
Provisions/liabilities no longer required written back |
(2,109,763 |
) |
(41,727 | ) | ||||||
Interest income |
— |
(12,513 | ) | |||||||
Finance costs |
2,150,174 |
2,778,598 | ||||||||
|
|
|
|
|||||||
1,445,212 |
3,907,377 | |||||||||
Operating cash flow before working capital changes |
3,851,977 |
(559,120 | ) | |||||||
Adjustments for: |
||||||||||
(Increase) in trade and other receivables/advances |
(2,817,928 |
) |
847,409 | |||||||
Decrease in inventories |
(9,631 |
) |
35,257 | |||||||
Increase in trade payables, other liabilities and provisions |
332,248 |
1,599,791 | ||||||||
|
|
|
|
|||||||
(2,495,312 |
) |
2,482,457 | ||||||||
Cash (used in) operations |
1,356,665 |
1,923,337 | ||||||||
Income taxes refund (net) |
16,628 |
(94,462 | ) | |||||||
|
|
|
|
|||||||
Net cash (used in) operating activities (A) |
1,373,293 |
1,828,874 | ||||||||
B. |
Cash flow from investing activities |
|||||||||
Purchase or construction of property, plant and equipment and intangible assets and movement in capital work in progress and capital advances and capital creditors |
(985,522 |
) |
(2,422,765 | ) | ||||||
Proceeds from sale of property, plant & equipment |
— |
10,929 | ||||||||
Bank deposits (having original maturity of more than 3 months) |
(8,958 |
) |
122,810 | |||||||
Interest received |
(10,231 |
) |
40,082 | |||||||
|
|
|
|
|||||||
Net cash (used in) investing activities (B) |
(1,004,711 |
) |
(2,248,945 | ) | ||||||
C. |
Cash flow from financing activities |
|||||||||
Acquisition of minority interest |
— |
69,839 | ||||||||
Proceeds from borrowings (net) |
(537,770 |
) |
3,298,150 | |||||||
Principal payments under finance lease |
— |
(987 | ) | |||||||
Finance costs paid |
(311,595 |
) |
(2,493,507 | ) | ||||||
|
|
|
|
|||||||
Net cash provided by financing activities (C) |
(849,365 |
) |
873,495 | |||||||
|
|
|
|
|||||||
Net (decrease) in cash and cash equivalent (A+B+C) |
(480,782 |
) |
453,425 | |||||||
Cash and cash equivalents at the beginning of the year |
592,684 |
139,258 | ||||||||
|
|
|
|
|||||||
Cash and cash equivalents at the end of the year (Refer Note (i) below) |
111,902 |
592,683 | ||||||||
|
|
|
|
|||||||
Notes: |
||||||||||
(i) |
Components of cash and cash equivalent (refer note 16) |
|||||||||
Cash on hand | 32,083 |
41,300 | ||||||||
Balance with banks | ||||||||||
On current accounts | 71,853 |
551,025 | ||||||||
On deposit accounts (with original maturity of 3 months or less) | 7,965 |
359 | ||||||||
|
|
|
|
|||||||
111,901 |
592,684 | |||||||||
|
|
|
|
(ii) | Standard 3 on Cash Flow Statement (AS 3 ) specified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014. |
For D.K. CHHAJER & CO. Chartered Accountants Firm’s Registration Number: 304138E |
For and on behalf of the Board of Directors |
Tapan K Mukhopadhyay Partner |
Dr. Syed Sabahat Azim Director |
Richa Sana Azim Director | ||
Membership No.: 017483 | DIN: 03122895 | DIN: 02609003 | ||
Place: Kolkata Date: 30th December 2020 |
S.No |
Name of the subsidiaries |
Country of incorporation |
Percentage of ownership interest as at 31 March 2020 |
Percentage of ownership interest as at 31 March 2019 | ||||
1 | GHSPL Multispeciality Hospital & Trauma Centre Private Limited |
India | 100% |
100% | ||||
2 | Ficus Health-Infra Private Limited |
India | 100% |
100% |
S.No |
Name of the subsidiaries |
Country of incorporation |
Percentage of ownership interest as at 31 March 2020 |
Percentage of ownership interest as at 31 March 2019 | ||||||||
Capital contribution ratio |
Profit sharing ratio |
Capital contribution ratio |
Profit sharing ratio | |||||||||
1 | GHSPL AMRO Super Speciality Healthcare LLP |
India | 100.00% |
100.00% |
100.00% | 100.00% | ||||||
2 | GHSPL BEGUSARAI Healthcare LLP |
India | 95.00% |
95.00% |
95.00% | 95.00% | ||||||
3 | GHSPL BGLP Super Speciality Healthcare LLP |
India | 50.00% |
65.00% |
50.00% | 65.00% | ||||||
4 | GHSPL FATEHPUR Super Speciality Healthcare LLP |
India | 50.00% |
65.00% |
50.00% | 65.00% | ||||||
5 | GHSPL JEYPORE Healthcare LLP |
India | 50.00% |
65.00% |
50.00% | 65.00% | ||||||
6 | GHSPL SAMBHAV KNJ Healthcare LLP |
India | 50.00% |
65.00% |
50.00% | 65.00% | ||||||
7 | GHSPL MLD Super Speciality Healthcare LLP |
India | 63.00% |
78.00% |
63.00% | 78.00% | ||||||
8 | GHSPL MUZF Super Speciality Healthcare LLP |
India | 42.00% |
62.00% |
42.00% | 62.00% | ||||||
9 | GHSPL SAMBHAV RP Healthcare LLP |
India | 83.33% |
96.00% |
83.33% | 96.00% | ||||||
10 | GHSPL SAMBHAV BSP Healthcare LLP |
India | 50.00% |
65.00% |
50.00% | 65.00% | ||||||
11 | GHSPL JAUNPUR Super Speciality Healthcare LLP |
India | 100.00% |
100.00% |
100.00% | 100.00% | ||||||
12 | GHSPL JSPR Healthcare LLP |
India | 100.00% |
100.00% |
100.00% | 100.00% | ||||||
13 | GHSPL BEM Healthcare LLP |
India | 50.00% |
65.00% |
50.00% | 65.00% |
S.No |
Name of the subsidiaries |
Country of incorporation |
Percentage of ownership interest as at 31 March 2020 |
Percentage of ownership interest as at 31 March 2019 | ||||||||
Capital contribution ratio |
Profit sharing ratio |
Capital contribution ratio |
Profit sharing ratio | |||||||||
14 | GHSPL AMBEDKAR SCAN Super Speciality Healthcare LLP |
India | 100.00% |
100.00% |
100.00% | 100.00% | ||||||
15 | GHSPL ARA Super Speciality Healthcare LLP |
India | 100.00% |
100.00% |
100.00% | 100.00% | ||||||
16 | GHSPL ASNSL Super Speciality Healthcare LLP |
India | 100.00% |
100.00% |
100.00% | 100.00% | ||||||
17 | GHSPL FRBD Super Speciality Healthcare LLP |
India | 100.00% |
100.00% |
100.00% | 100.00% | ||||||
18 | GHSPL MDPR Super Speciality Healthcare LLP |
India | 92.00% |
98.00% |
92.00% | 98.00% | ||||||
19 | GHSPL SHRNPR Super Speciality Healthcare LLP |
India | 100.00% |
100.00% |
100.00% | 100.00% | ||||||
20 | GHSPL SJPR Super Speciality Healthcare LLP |
India | 100.00% |
100.00% |
100.00% | 100.00% | ||||||
21 | GHSPL STP Super Speciality Healthcare LLP |
India | 50.00% |
65.00% |
50.00% | 65.00% | ||||||
22 | GHSPL SW Healthcare LLP |
India | 100.00% |
100.00% |
100.00% | 100.00% | ||||||
23 | GHSPL DGHR Super Speciality Healthcare LLP |
India | 100.00% |
100.00% |
100.00% | 100.00% | ||||||
24 | GHSPL DNBD Super Speciality Healthcare LLP |
India | 100.00% |
100.00% |
100.00% | 100.00% | ||||||
25 | GHSPL GYA Super Speciality Healthcare LLP |
India | 100.00% |
100.00% |
100.00% | 100.00% | ||||||
26 | GHSPL PRN Super Speciality Healthcare LLP |
India | 60.00% |
76.00% |
60.00% | 76.00% | ||||||
27 | GHSPL DARBHANGA Super Speciality Healthcare LLP |
India | 50.00% |
65.00% |
50.00% | 65.00% | ||||||
28 | GHSPL BALASORE Super Speciality Healthcare LLP |
India | 100.00% |
100.00% |
100.00% | 100.00% | ||||||
29 | GHSPL BASTI Super Speciality Healthcare LLP |
India | 100.00% |
100.00% |
100.00% | 100.00% | ||||||
30 | GHSPL VARANASI Super Speciality Healthcare LLP |
India | 100.00% |
100.00% |
100.00% | 100.00% | ||||||
31 | GHSPL PURI Super Speciality Healthcare LLP |
India | 100.00% |
100.00% |
100.00% | 100.00% | ||||||
32 | GHSPL CNTA Super Speciality Healthcare LLP |
India | 100.00% |
100.00% |
100.00% | 100.00% | ||||||
33 | GHSPL JHRSD Super Speciality Healthcare LLP |
India | 100.00% |
100.00% |
100.00% | 100.00% | ||||||
34 | GHSPL ALIGR Super Speciality Healthcare LLP |
India | 100.00% |
100.00% |
100.00% | 100.00% |
S.No |
Name of the subsidiaries |
Country of incorporation |
Percentage of ownership interest as at 31 March 2020 |
Percentage of ownership interest as at 31 March 2019 | ||||||||
Capital contribution ratio |
Profit sharing ratio |
Capital contribution ratio |
Profit sharing ratio | |||||||||
35 | GHSPL BHNGAR Super Speciality Healthcare LLP |
India | 56.00% | 89.00% | 56.00% | 89.00% | ||||||
36 | GHSPL MRBD Super Speciality Healthcare LLP |
India | 100.00% | 100.00% | 100.00% | 100.00% | ||||||
37 | GHSPL SMBL Super Speciality Healthcare LLP |
India | 100.00% | 100.00% | 100.00% | 100.00% | ||||||
38 | GHSPL KNPR Super Speciality Healthcare LLP |
India | 100.00% | 100.00% | 100.00% | 100.00% | ||||||
39 | GHSPL Patna Super Speciality Healthcare LLP |
India | 100.00% | 100.00% | 100.00% | 100.00% | ||||||
40 | GHSPL Dhubri Super Speciality Healthcare LLP |
India | 100.00% | 100.00% | 100.00% | 100.00% |
1 |
Significant accounting policies |
(a) |
Basis of preparation of consolidated financial statements: |
(b) |
Principles of consolidation |
(c) |
Use of estimates |
(d) |
Current - non-current classification |
(e) | Revenue recognition |
(f) | Liabilities Written back |
(g) | Property, plant and equipment(PPE) |
(h) | Depreciation |
(i) | Intangible assets |
• | Expenditure on research activities, undertaken with the prospect of gaining new scientific or technical knowledge and understanding, is recognised in the Consolidated Statement of Profit and Loss as incurred. |
• | Development activities involve a plan or design for the production of new or substantially improved products or processes. Development cost is capitalised only if the development costs can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable, and the Group intends to and has sufficient resources to complete development and to use the asset. The expenditure capitalised includes the cost of materials, direct labour, overhead costs that are directly attributable to preparing the asset for its intended use, and directly attributable borrowing costs (in the same manner as in the case of property, plant & equipment). Other development expenditure is recognised in Consolidated Statement of Profit and Loss as incurred. |
(j) | Amortisation |
(k) | Government grants |
(l) | Impairment of property, plant & equipment and intangible assets |
(m) | Inventories |
(n) | Foreign currency transaction |
(o) | Operating leases |
(p) | Investments |
(q) | Employee benefits |
(r) | Taxation |
(s) | Provisions and contingent liabilities |
(t) | Earnings/(loss) per share |
(u) | Discount on issue of debentures |
(v) | Cash and cash equivalents |
(w) | Cash flow statement |
(x) | Going Concern |
2 |
Share capital |
Amount in USD |
||||||||||||||||
31 March 2020 |
31 March 2019 | |||||||||||||||
Number of shares |
Amount |
Number of shares |
Amount | |||||||||||||
Authorised |
||||||||||||||||
Equity shares of INR 10 each |
13,500,000 |
2,075,515 |
13,500,000 | 2,075,515 | ||||||||||||
Preference shares of INR 100 each |
5,000,000 |
7,687,092 |
5,000,000 | 7,687,092 | ||||||||||||
Preference shares of Re. 1 each |
3,200,000 |
49,197 |
3,200,000 | 49,197 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
21,700,000 |
9,811,805 |
21,700,000 | 9,811,805 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Issued, subscribed and paid up |
||||||||||||||||
Equity Shares |
||||||||||||||||
Equity shares of INR 10 each |
492,904 |
104,371 |
492,904 | 104,371 | ||||||||||||
Preferred Stock |
||||||||||||||||
0.001% Compulsorily Convertible Cumulative Preference Shares - Series A of INR 100 each |
240,777 |
508,086 |
240,777 | 508,086 | ||||||||||||
0.001% Compulsorily Convertible Cumulative Preference Shares - Series C of INR 100 each |
254,936 |
406,102 |
254,936 | 406,102 | ||||||||||||
0.001% Compulsorily Convertible Cumulative Preference Shares - Series C1 of INR 100 each |
157,234 |
243,565 |
157,234.00 | 243,565 | ||||||||||||
8% Compulsorily Convertible Cumulative Preference Shares of INR 100 each |
3,499,588 |
5,550,528 |
3,499,588 | 5,550,528 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
4,645,439 |
6,812,652 |
4,645,439 | 6,812,652 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
a) Reconciliation of the shares outstanding at the beginning and at the end of the year: |
|
|||||||||||||||
Equity shares of INR10 each fully paid up |
||||||||||||||||
At the commencement and at the end of the year |
492,904 |
104,371 |
492,904 | 104,371 | ||||||||||||
Shares issued during the year |
— |
— |
— | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
At the end of the year |
492,904 |
104,371 |
492,904 | 104,371 | ||||||||||||
0.001% Compulsorily Convertible Cumulative Preference Shares - Series A |
||||||||||||||||
At the commencement and at the end of the year |
240,777 |
508,086 |
240,777 | 508,086 | ||||||||||||
Shares converted into equity shares during the year |
— |
— |
— | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
At the end of the year |
240,777 |
508,086 |
240,777 | 508,086 | ||||||||||||
0.001% Compulsorily Convertible Cumulative Preference Shares - Series C |
||||||||||||||||
At the commencement and at the end of the year |
254,936 |
406,102 |
254,936 | 406,102 | ||||||||||||
Shares issued during the year |
— |
— |
— | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
At the end of the year |
254,936 |
406,102 |
254,936 | 406,102 |
Amount in USD |
||||||||||||||||
31 March 2020 |
31 March 2019 | |||||||||||||||
Number of shares |
Amount |
Number of shares |
Amount | |||||||||||||
0.001% Compulsorily Convertible Cumulative Preference Shares - Series C1 |
||||||||||||||||
At the commencement and at the end of the year |
157,234 |
243,565 |
157,234 | 243,565 | ||||||||||||
Shares issued during the year |
— |
— |
— | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
At the end of the year |
157,234 |
243,565 |
157,234 | 243,565 | ||||||||||||
8% Compulsorily Convertible Cumulative Preference Shares |
||||||||||||||||
At the commencement of the year |
3,499,588 |
5,550,528 |
3,499,588 | 5,550,528 | ||||||||||||
Shares issued during the year |
— |
— |
— | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
At the end of the year |
3,499,588 |
5,550,528 |
3,499,588 | 5,550,528 |
b) |
Shares held by holding company: |
c) |
Details of shareholders holding more than 5% are as follows |
Number of shares |
% of shares held |
Number of shares |
% of shares held | |||||||||||||
Equity shares of INR 10 each fully paid up held by |
||||||||||||||||
Dr. Syed Sabahat Azim |
154,000 |
31.24 |
154,000 | 31.24 | ||||||||||||
Mrs. Richa Sana Azim |
154,000 |
31.24 |
154,000 | 31.24 | ||||||||||||
Mr. M. Damodaran |
52,855 |
10.72 |
52,855 | 10.72 | ||||||||||||
Elevar Equity Mauritius |
52,555 |
10.66 |
52,555 | 10.66 | ||||||||||||
0.001% Compulsorily Convertible Cumulative Preference Shares - Series A |
||||||||||||||||
Elevar Equity Mauritius |
146,616 |
60.89 |
146,616 | 60.89 | ||||||||||||
Sequoia Capital India Investment Holdings III |
94,161 |
39.11 |
94,161 | 39.11 | ||||||||||||
0.001% Compulsorily Convertible Cumulative Preference Shares - Series C |
||||||||||||||||
Elevar Equity Mauritius |
125,774 |
49.34 |
125,774 | 49.34 | ||||||||||||
Sequoia Capital India Investment Holdings III |
62,887 |
24.67 |
62,887 | 24.67 | ||||||||||||
Mr. M. Damodaran |
45,311 |
17.77 |
45,311 | 17.77 | ||||||||||||
Kimberlite Social Infra Private Limited |
20,964 |
8.22 |
20,964 | 8.22 | ||||||||||||
0.001% Compulsorily Convertible Cumulative Preference Shares - Series C1 |
||||||||||||||||
Elevar Equity Mauritius |
157,234 |
100 |
157,234 | 100 | ||||||||||||
8% Compulsorily Convertible Cumulative Preference Shares |
||||||||||||||||
SIDBI Trustee Company Limited A/C Samridhi |
3,499,588 |
100 |
3,499,588 | 100 |
d) |
Rights, preferences and restrictions in respect of each class of shares including restrictions on the distribution of dividends and the repayment of capital: |
3 |
Reserves and surplus |
31 March 2020 |
31 March 2019 |
|||||||
Securities premium account |
8,320,698 | 8,320,698 | ||||||
Revaluation surplus |
10,128,170 | 10,128,170 | ||||||
General reserve |
331,361 | 331,361 | ||||||
Foreign Currency Translation reserve |
(2,576,594 | ) | (1,908,158 | ) | ||||
Surplus in Statement of Profit and Loss |
||||||||
At the commencement of the year |
(17,873,766 | ) | (13,863,398 | ) | ||||
Add: Profit/(Loss) for the year |
2,383,964 | (4,010,368 | ) | |||||
|
|
|
|
|||||
Balance as at the end of the year |
(15,489,802 |
) |
(17,873,766 |
) | ||||
|
|
|
|
|||||
Total reserves and surplus |
713,832 |
(1,001,696 |
) | |||||
|
|
|
|
4 |
Long-term borrowings |
Amount in USD |
||||||||||||||||||||
Non-current portion |
Current portion* |
|||||||||||||||||||
Secured/ unsecured |
31 March 2020 |
31 March 2019 | 31 March 2020 |
31 March 2019 | ||||||||||||||||
204,540 (previous year: 204,540) 13.55% non-convertible debentures of INR 1,000 each |
Secured | — | — | 2,715,433 | 2,940,868 | |||||||||||||||
Less: Discount on issue of debenture to the extent not written off or adjusted |
— | — | — | 2,713 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
— | — | 2,715,433 |
2,938,155 |
|||||||||||||||||
Term loans from Banks |
Secured | — | 10,297,067 | 12,630,603 | 3,487,525 | |||||||||||||||
Term loan from Small Industries Development Bank of India |
Secured | 561,155 | 718,898 | 107,534 | 93,457 | |||||||||||||||
Term loan from National Skill Development Corporation |
Secured | 695,997 | 1,129,351 | 1,396,354 | 1,136,706 | |||||||||||||||
Term loan from Caspian Impact Investments Private Limited |
Unsecured | — | 359,449 | 1,327,580 | 1,078,347 | |||||||||||||||
Term loan from Blacksoil capital Private |
||||||||||||||||||||
Limited |
secured | — | 245,079 | 362,333 | 588,477 | |||||||||||||||
Equipment loan |
Secured | 321,760 | 531,167 | 237,157 | 297,165 | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
1,578,912 |
13,281,012 |
18,776,995 |
9,619,832 |
|||||||||||||||||
|
|
|
|
|
|
|
|
* | Amount disclosed under Other current liabilities - Note 8 |
(a) |
Secured non-convertible debenture |
(i) | The Company had issued 13.55% redeemable non-convertible debenture of face value of INR 1,000 each agreegating to INR 204,540,000 (USD 2,715,433) at a discount of 0.95% on face value on 19 March 2016 to Essential Capital Consortium BV on private placement basis. These debentures are redeemable at par in two equal instalments of INR 102,270,000 (USD 1,478,574) each on 5 May 2019 and 5 November 2019 and in case put option is exercised by debenture holder, the total balance of INR 204,540,000 (USD 287,172) has to be repaid on any date not earlier than 11 February 2019. Interest is payable semi-annually at the rate of 13.55% per annum (net of withholding tax) on interest payment dates or earlier in case upon the exercise of the put option (interest payment starting from 5 May 2016 and ending on 5 November 2019 and in case put option is exercised, starting from 5 May 2016 and ending on 11 February 2019 ) as per Mortgage Cum Debenture Trust Deed dated 4 February 2016. |
(ii) | These debentures are secured by way of a second ranking and continuing charge by way of registered mortgage on the; |
(iii) | In view of contribution of the company in the field of medicine especially during the COVID situation, USAID has decided to approve grant by paying off its debts towards Essential Capital Consortium (ECC). The grant has approved as on date of signing off balance sheet and ROC filing ahs been completed in June 2020. |
(b) |
Term loans from Allahabad Bank |
(i) | Term loan from Allahabad Bank amounting to INR 952,256,998 (USD 12,641,978) [previous year INR 958,730,792 (USD 13,784,592)] is secured by; |
(ii) | Interest on the above Term Loan-I, II & III carries an interest of 1-year MCLR plus 3.10% p.a. at monthly rests and is payable as and when due. And Term Loan IV and V carries an interest of 1-year MCLR plus 4.10% p.a. at monthly rests and is payable as and when due. |
(iii) | The Company has been disputing the EMIs being deducted by Allahabad bank since 2017 in respect to hospital projects that have not achieved COD especially as the disbursal also started |
late. The Bank and the Company are entering into a restructuring proposal to resolve this issue. The Techno Economic viability report with positive recommendation has been submitted by Dun & Bradstreet which was appointed by bank to examine and report on the viability and Independent Credit Rating has been given by the approved rating agency. It is expected that the restructuring process will be completed in 2021. During this time the loan has been classified by the Bank as technical NPA pending closure of restructuring process. |
(c) |
Term loan from Small Industries Development Bank of India (SIDBI) |
(i) | Term loan from SIDBI amounting to INR 50,900,000 (USD 675,738) [previous year INR56,500,000 (USD 812,355) ] is secured by: |
(ii) | Above term loan carries an interest of SIDBI’s Prime Lending Rate (PLR) plus 1.50%, at monthly rests and is payable as and when applied. |
(d) |
Term loan from National Skill Development Corporation |
(i) | Term loan from National Skill Development Corporation amounting to INR 157,606,322 (USD 2,092,351) [previous year : INR 157,606,322 (USD 2,266,057)] is secured by: |
(ii) | The rate of interest being charged is simple interest of 6% p.a. payable on a quarterly basis after the interest-free moratorium period of two years from the date of first disbursement of the loan. |
(e) |
Term loan from Caspian Impact Investments Pvt. Ltd. |
(i) | Term loan from Caspian Impact Investments Pvt. Ltd. amounting to INR 100,000,000 (USD 1,327,580) [previous year: INR 100,000,000 (USD 1,437,796)] is unsecured and other terms are: |
(f) |
Equipment loan |
(i) | Equipment loan from India Infoline Finance Limited amounting to INR 11,356,719 (USD 150,770) [previous year: INR 13,548,550 (USD 198,400)] consists of: |
(ii) | Equipment loan from India Infoline Finance Limited taken in the books of GHSPL Amroha Super Speciality Healthcare LLP amounting to INR 5,822,799 (USD 77,302) [previous year: INR 7,524,662 (USD 108,189)] is secured by way of exclusive hypothecation charge over equipment being financed and personal guarantee of Dr. Syed Sabahat Azim and Mrs. Richa Sana Azim (Directors of Glocal Healthcare Systems Pvt ltd.- partner in LLP). This equipment loan has been sanctioned with a limit of INR 11,738,210 (USD 155,834) and at the margin of 11%. This loan is repayable in 72 equated monthly instalments of INR 150,100 (USD 2220) starting from 15 January 2016, INR 213,750 (USD 3,138) starting from 15 January 2017 and INR 260,450 (USD 3,899) starting from 15 February 2017. Equipment loan carries an interest at the rate of 13% p.a. |
(iii) | Equipment loan from India Infoline Finance Limited taken in the books of GHSPL Sambhav KNJ Healthcare LLP amounting to INR 8,040,442 (USD 106,743) [previous year: INR 10,971,843 |
(USD 157,753)] is secured by way of exclusive hypothecation charge over equipment being financed and personal guarantee of Dr. Syed Sabahat Azim and Mrs. Richa Sana Azim (Directors of Glocal Healthcare Systems Pvt ltd.- partner in LLP). This equipment loan has been sanctioned with a limit of INR17,048,720 and at the margin of 11%. This loan is repayable in 72 monthly installments of INR 201,500 (USD 2,980) starting from 15 January 2016 and INR 383,000 (USD 5,623) starting from 15 January 2017. Equipment loan carries an interest at the rate of 13% p.a. |
(iv) | Equipment loan from India Infoline Finance Limited taken in the books of GHSPL MUZF Super Speciality Healthcare LLP amounting to INR 9,305,242 (USD 123,535) [previous year: INR 12,837,321 (USD 184,574) is secured by way of exclusive hypothecation charge over equipment being financed and personal guarantee of Dr. Syed Sabahat Azim and Mrs. Richa Sana Azim (Directors of Glocal Healthcare Systems Pvt ltd.- partner in LLP). This equipment loan has been sanctioned with a limit of INR 21,587,395 (USD 286,590) and at the margin of 11%. This loan is repayable in 72 monthly installments of INR 272,500 (USD 4,073) starting from 15 February 2016 and INR 480,000 (USD 7,047) starting from 15 January 2017. Equipment loan carries an interest at the rate of 13% p.a. |
(v) | Equipment loan from Dewan Housing Finance Limited taken in the books of GHSPL BGLP Super Speciality Healthcare LLP amounting to INR 2,459,836 (USD 32,656) [previous year: INR 4,529,609 (USD 65,127 )] is secured by way of exclusive hypothecation charge over equipment being financed and personal guarantee of Dr. Syed Sabahat Azim and Mrs. Richa Sana Azim (Directors of Glocal Healthcare Systems Pvt ltd.- partner in LLP). This equipment loan has been sanctioned with a limit of INR 9,999,591 (USD 132,753) and at the margin of 11%. This loan is repayable in 60 monthly installments of INR 224,991 starting from March 2016. Equipment loan carries an interest at the rate of 12.50% p.a. |
(vi) | Equipment loan from Dewan Housing Finance Limited taken in the books of GHSPL Jeypore Healthcare LLP amounting to INR 2,693,833 (USD 35,763) [previous year: INR 4,916,556 (USD 70,690) is secured by way of exclusive hypothecation charge over equipment being financed and personal guarantee of two Directors of Glocal Healthcare Systems Private Limited- partner, Dr. Syed Sabahat Azim and Mrs. Richa Sana Azim. This equipment loan has been sanctioned with a limit of INR 10,011,423 (USD 132,910). This loan is repayable in 60 equated monthly instalments of INR 225,257 (USD 3,396) starting from April 2016. Equipment loan carries an interest at the rate of 12.50% p.a. |
(vii) | Equipment loan from India Infoline Finance Limited taken in the books of GHSPL Begusarai Healthcare LLP amounting to INR 2,421,567 (USD 32,148) [previous year: INR 3,282,710 (USD 47,199)] is secured by way of exclusive hypothecation charge over equipment being financed and personal guarantee of Dr. Syed Sabahat Azim and Mrs. Richa Sana Azim [Directors of GHSPL (partner in the LLP)]. This equipment loan has been sanctioned with a limit of INR 5,226,970 (USD 69,392). This loan is repayable in 72 monthly installments (including first 12 months as principle moratoriam) starting from 15 January, 2016. Equipment loan carries an interest of 13% p.a |
(g) |
Term loan from Blacksoil Capital Private Limited |
Term loan from Black Soil Private Limited amounting to INR 27,272,723 (USD 362,067) [previous year: INR 57,945,543 (USD 833,139)] is unsecured and other terms are: |
(h) |
Loan from Hero Fincorp |
(i) | Term loan amounting to Nil |
(ii) | The term loan has been sanctioned for INR 70,000,000 (USD 929,306) as working capital loan & INR 60,000,000 (USD 796,548) as term loan for capex requirements- production & expansion of digital dispensary business and takeover of existing term loan from SIDBI & IIFL respectively. |
(iii) | Above term loan is carries an interest of Hero Fincorp Prime Lending Rate @ 13% p.a. at monthly rests |
(i) |
Overdue payment of loan |
( IN USD) |
||||||||||
Particulars |
Principal Amount |
Interest Amount |
Period | |||||||
Allahabad Bank Loan |
||||||||||
TL-1 |
394,117 | 226,182 | 1.Principal Amount due from June 2018 2.Interest amount due from March 2019 | |||||||
TL-2 |
256,965 | 152,985 | ||||||||
TL-3 |
491,216 | 344,725 | 1.Principal Amount due from June 2018 2.Interest amount due from January 2019 | |||||||
TL-4 |
373,050 | 390,837 | 1.Principal Amount due from July 2018 2.Interest amount due from January 2019 | |||||||
TL-5 |
1,059,409 | 778,657 | 1. Principal & Interest due from Janurary’2019 to March 2020 |
( IN USD) |
||||||||||
Particulars |
Principal Amount |
Interest Amount |
Period | |||||||
Caspian Impact Investments Private Limited (Refer point “f” above) |
331,895 | 33,278 | Feruary 2019 to March 2020 | |||||||
Blacksoil Capital Private Limited (Refer point “h” above) |
135,775 | 12,393 | January 2019 to March 2020 | |||||||
National Skill Development Corporation (NSDC) |
346,783 | 130,903 | April 2019 to March 2020 | |||||||
Small Industries Development Bank Ltd. |
15,931 | 15,912 | January 2020 to February 2020 | |||||||
Total |
3,405,142 |
5,491,013 |
5 |
Provisions |
Amount in USD |
||||||||||||||||
Long-term |
Short-term |
|||||||||||||||
31 March 2020 |
31 March 2019 | 31 March 2020 |
31 March 2019 | |||||||||||||
Provision for employee benefits |
||||||||||||||||
Gratuity Compensated |
78,161 |
66,285 | 3,322 |
3,683 | ||||||||||||
Absences |
51,524 |
44,916 | 2,471 |
3,073 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
129,685 |
111,200 |
5,793 |
6,756 |
|||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Other provisions |
||||||||||||||||
Provision for Income |
||||||||||||||||
Tax |
— |
— | 1,859 |
2,013 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
— |
— | 1,859 |
2,013 |
|||||||||||||
|
|
|
|
|
|
|
|
|||||||||
129,685 |
111,200 |
7,651 |
8,769 |
|||||||||||||
|
|
|
|
|
|
|
|
5.1 | Actuarial valuation has not been done for non-operative LLP’s and LLP’s which are given on O&M or where there are no employees as on March 31, 2020. Hence, for those LLP’s closing balance is taken as it is from March 31, 2019. Name of LLP’s for whom Actuarial valuation was done in March 31, 2019 but not done in March 31, 2020 as follows: |
a. | GHSPL JEYPORE Healthcare LLP |
b. | GHSPL SAMBHAV KNJ Healthcare LLP |
c. | GHSPL MUZF Super Speciality Healthcare LLP |
d. | GHSPL MDPR Super Speciality Healthcare LLP |
6 |
Short-term borrowings |
31 March 2020 |
31 March 2019 | |||||||
Cash credit facilities from bank (secured) |
1,117,699 |
1,336,656 | ||||||
Unsecured loan |
||||||||
- loan from Hero Fincorp Ltd |
929,306 |
431,339 | ||||||
- loan from related party (refer note 35) |
373,962 |
406,005 | ||||||
- loan from directors (refer note 35) |
20,312 |
28,468 | ||||||
- loan from others |
1,451,329 |
1,740,725 | ||||||
|
|
|
|
|||||
3,892,608 | 3,943,193 | |||||||
|
|
|
|
6.1(i) | Cash credit facilities from Allahabad Bank has been sanctioned with a limit of INR 50,000,000 (USD 663,790) (for working capital requirement of the five existing operational hospitals of the Company with a margin of 25%) and is secured by first and exclusive charge of hypothecation of all the current assets of the five units and administrative office of the Company (both present and future). Further, secured by (along with bank guarantee) second charge on land and building, plant and machineries and other fixed assets of the five existing operational hospitals under the Company’s direct ownership (both present and future). The cash credit facilitities carry an interest rate of one year MCLR plus 3.10% p.a. computed on a monthly basis on the actual amount utilised and are repayable as and when due. |
(ii) | During the financial year ended 31 March 2020, the Group has availed cash credit facilities from Allahabad Bank for Amroha, Krishnanagar, Jeypore, Begusarai, Bhagalpur, Medinapur, Malda, Bhangar, Basti and Muzafarpur LLP’s. Cash Credit from Allahabad Bank has been sanctioned with a limit of INR 30,000,000 (USD 398,287.15) and is secured by stock (margin of 25% on stocks and 40% on book debts up to 90 days old). The cash credit facilities carry an interest rate of 1 year Allahabad Bank MCLR + 4.10% p.a. computed on a monthly basis on the actual amount utilised and are repayable on demand. |
(iii) | The company has been disputing the EMIs being deducted by Allahabad bank since 2017 in respect to hospital projects that have not achieved COD especially as the disbursal also started late. The Bank and the company are entering into a restructuring proposal to resolve this issue. The Techno Economic viability report with positive recommendation has been submitted by Dun & Bradstreet which was appointed by bank to examine and report on the viability and Independent Credit Rating has been given by the approved rating agency. It is expected that the restructuring process will be completed in 2021. During this time the loan has been classified by the Bank as NPA pending closure of restructuring process. |
6.2 | Interest free loan taken from directors and related parties are repayable on demand. |
6.3 | a. Loan taken from others is repayable on demand. |
b. | Loan taken from others carries an interest rate of 12% to 15% p.a. (except for three parties) |
6.4 | Loan from Hero Fincorp |
(i) | Term loan amounting to INR 70,000,000 (USD 929,306) [previous year INR 30,000,000 (USD 431,339)] is secured by: |
(ii) | The term loan has been sanctioned for INR 70,000,000 (USD 929,306) as working capital loan & INR 60,000,000 (USD 862,678) as term loan for capex requirements- production & expansion of digital dispensary business and takeover of existing term loan from SIDBI & IIFL respectively. The term loan facility for takeover of loan from SIDBI & IIFL has not been availed and hence got expired. So the charge created against immovable property is still lying with SIDBI. |
(iii) | Above term loan is carries an interest of Hero Fincorp Prime Lending Rate @ 13% p.a. at monthly rests |
(iv) | The repayment of loan has not started yet. |
(v) | As per circular DOR.No.BP.BC.47/21.04.048/2019-20 dated March 27, 2020 regulatory measures were announced by RBI to mitigate the burden of debt servicing brought about by disruptions on account of COVID-19 pandemic by granting a moratorium of three months on payment of all instalments falling due between March 1, 2020 and May 31, 2020. Further, this relief is extended till August 31, 2020 and this package has been taken up the company and installments has been rescheduled accordingly. |
7 |
Trade payables |
31 March 2020 |
31 March 2019 | |||||||
Total outstanding dues of micro enterprises and small enterprises |
— | — | ||||||
Total outstanding dues of creditors other than micro enterprises and small enterprises |
1,471,145 |
2,418,496 | ||||||
|
|
|
|
|||||
1,471,145 |
2,418,496 |
|||||||
|
|
|
|
7.1 | For dues to micro and small suppliers, refer to note 31 |
8 |
Other current liabilities |
31 March 2020 |
31 March 2019 | |||||||
Current maturities of long-term debts (refer note 4) |
18,776,995 |
9,619,832 | ||||||
Interest accrued and due on term loans |
2,275,228 |
596,171 | ||||||
Interest accrued and due on cash credit |
145,101 |
— | ||||||
Interest accrued and due on equipment loan |
32,465 |
19,072 | ||||||
Interest accrued and due on other loan |
118,523 |
— | ||||||
Interest accrued but not due on debentures |
— |
158,953 | ||||||
Interest accrued but and due on debentures |
182,050 |
— | ||||||
Creditors for capital goods |
178,446 |
717,026 | ||||||
Employee benefits payable |
539,903 |
911,934 | ||||||
Advance from TPA & Customers |
431,960 |
431,339 | ||||||
Partner’s Current A/c |
17,259 |
18,691 | ||||||
Statutory dues payable |
||||||||
Provident fund |
274,585 |
176,766 | ||||||
Professional tax |
12,484 |
10,175 | ||||||
Employee state insurance payable |
166,695 |
150,015 | ||||||
Tax deducted at source payable |
327,555 |
457,415 | ||||||
Goods and services tax payable |
88,504 |
207,322 | ||||||
Unearned revenue |
131,424 |
341,605 | ||||||
Advance from patients and others |
7,220 |
35,623 | ||||||
Other liabilities/ payables |
128,565 |
49,409 | ||||||
|
|
|
|
|||||
23,834,963 |
13,901,348 |
8.1 |
Due to this financial crunch there has been continuing delay in payment of statutory dues on the part of the company. |
8.2 |
Advance receipt of INR 30 mm from S.S Earth Moving Mining was for setup of dispensary setup in their mining area. But no space was allocated to us by them, hence setup is not done. |
8.3 |
Advance include amount received from African medical supply for supply of Digital Dispensary setup but due to COVID outbreak same could not be fulfilled |
8.4 |
Regarding interest accrued and due on term loan taken from Allahabad bank,the company has been disputing the EMIs being deducted by the bank since 2017 in respect to hospital projects, that have not achieved COD especially as the disbursal also started late. The Bank and the company are entering into a restructuring proposal to resolve this issue. The Techno Economic viability report with positive recommendation has been submitted by Dun & Bradstreet which was appointed by bank to examine and report on the viability and Independent Credit Rating has been given by the approved rating agency. It is expected that the restructuring process will be completed in 2021. During this time the loan has been classified by the Bank as technical NPA pending closure of restructuring process. As the account has been declared technical NPA by the bank so no interest has been charged by the bank but following the concept of mercantile system of accounting interest on term loan from Allahabad Bank and interest on cash credit limit has been calculated and charged in expenses. This interest has been classified as Interest accrued and due under other current liabilities. |
9 |
Goodwill |
31 March 2020 |
31 March 2019 | |||||||
Opening balance |
598,136 |
639,580 | ||||||
Amortisation of Goodwill |
(95,982 |
) |
— | |||||
Forex Adjustment |
(42,172 |
) |
(41,444 | ) | ||||
|
|
|
|
|||||
Closing balance |
459,982 |
598,136 |
||||||
|
|
|
|
12 |
Long-term loans and advances |
31 March 2020 |
31 March 2019 | |||||||
(Unsecured and considered good) |
||||||||
To parties other than related parties |
||||||||
(a) Capital advances |
544,996 |
559,029 | ||||||
(b) Security deposits |
166,558 |
179,882 | ||||||
|
|
|
|
|||||
711,553 |
738,911 |
|||||||
(c) Other loans and advances |
||||||||
TDS receivables |
413,507 |
398,097 | ||||||
|
|
|
|
|||||
413,507 |
398,097 |
|||||||
|
|
|
|
|||||
1,125,061 |
1,137,008 |
|||||||
|
|
|
|
13 |
Other non-current assets |
31 March 2020 |
31 March 2019 | |||||||
(Unsecured and considered good) |
||||||||
Bank deposits (due to mature after 12 months from the reporting date) [refer note 16]* |
19,289 |
47,989 | ||||||
Balance with government authorities |
661 |
716 | ||||||
Interest accrued on bank deposits |
41 |
4,999 | ||||||
Interest accrued on electricity deposits |
636 |
688 | ||||||
|
|
|
|
|||||
20,626 |
54,393 |
|||||||
|
|
|
|
14 |
Inventories |
(Valued at lower of cost and net realisable value) |
||||||||
Stock of digital dispensary |
51,168 |
— | ||||||
Stock of medicines and medical consumables |
214,162 |
247,135 | ||||||
Stores and spares |
3,966 |
12,529 | ||||||
|
|
|
|
|||||
269,296 |
259,664 |
|||||||
|
|
|
|
15 |
Trade receivables |
(a) Unsecured and considered good |
1,520,746 |
2,289,379 | ||||||
(b) Doubtful |
434,940 |
471,048 | ||||||
Less: Provision for doubtful receivables |
(434,940 |
) |
(471,048 | ) | ||||
|
|
|
|
|||||
1,520,746 |
2,289,379 | |||||||
Other receivables |
||||||||
(a) Unsecured, considered good |
3,199,210 |
968,194 | ||||||
|
|
|
|
|||||
4,719,956 |
3,257,573 |
|||||||
|
|
|
|
16 |
Cash and bank balances |
31 March 2020 |
31 March 2019 | |||||||
Cash and cash equivalents |
||||||||
Cash on hand |
32,083 |
41,300 | ||||||
Balance with banks: |
||||||||
On current accounts |
71,853 |
551,025 | ||||||
On deposit accounts (with original maturity of 3 months or less) |
7,965 |
359 | ||||||
|
|
|
|
|||||
111,901 |
592,684 |
|||||||
Other bank balances: |
||||||||
Deposits in banks with maturity of more than 3 months but less than 12 months* |
59,965 |
28,515 | ||||||
|
|
|
|
|||||
171,867 |
621,199 |
|||||||
|
|
|
|
* | Bank deposits of USD 13,276 (31 March 2019: USD 14,378) have been pledged with Black Soil as security for term loan |
* | Bank deposits of USD 30,421 (31 March 2019: USD 44,323) have been given as cash margin to banks for issuing bank guarantees to government authorities. |
17 |
Short-term loans and advances |
(Unsecured and considered good) |
||||||||
To parties other than related parties |
||||||||
Security deposits |
37,376 |
40,479 | ||||||
Prepaid expenses |
2,652 |
3,378 | ||||||
Advance for supply of goods and services |
493,214 |
221,913 | ||||||
Advance to doctors |
26,339 |
14,513 | ||||||
Advances to employees |
396,399 |
99,368 | ||||||
Advances to others |
52,262 |
39,000 | ||||||
|
|
|
|
|||||
1,008,242 |
418,651 |
|||||||
|
|
|
|
18 |
Other current assets |
(Unsecured and considered good) |
||||||||
Interest accrued on bank deposits |
16,261 |
6,030 | ||||||
Government grant receivable |
492,567 |
309,455 | ||||||
Unbilled revenue |
3,786 |
27,472 | ||||||
|
|
|
|
|||||
512,613 |
342,956 |
|||||||
|
|
|
|
10 |
Property, Plant & Equipment |
Freehold land |
Leasehold land |
Buildings |
Electrical equipment |
Medical & surgical equipments |
Furniture and fixtures |
Vehicles |
Office equipment |
Computers and accessories |
Total |
|||||||||||||||||||||||||||||||
Gross block |
||||||||||||||||||||||||||||||||||||||||
As at 1 April 2018 |
6,058,520 | 32,426 | 20,286,052 | 930,781 | 4,066,207 | 684,259 | 13,958 | 190,944 | 347,028 | 32,610,176 |
||||||||||||||||||||||||||||||
Adjustments |
— | — | — | — | — | — | — | — | — | — |
||||||||||||||||||||||||||||||
Additions |
— | — | 112,135 | 491 | 20,382 | 3,451 | — | 350 | 2,418 | 139,225 |
||||||||||||||||||||||||||||||
Disposals |
— | — | — | — | 13,390 | 284 | — | 89 | — | 13,763 |
||||||||||||||||||||||||||||||
Forex Adjustment |
(392,584 | ) | (2,101 | ) | (1,318,141 | ) | (60,329 | ) | (290,491 | ) | (45,009 | ) | (904 | ) | (12,560 | ) | (22,565 | ) | (2,144,684 |
) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
As at 31 March 2019 |
5,665,936 | 30,325 | 19,080,046 | 870,943 | 3,809,487 | 642,984 | 13,054 | 178,824 | 326,881 | 30,618,480 |
||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
As at 1 April 2019 |
5,665,936 |
30,325 |
19,080,046 |
870,943 |
3,809,487 |
642,984 |
13,054 |
178,824 |
326,881 |
30,618,480 |
||||||||||||||||||||||||||||||
Adjustment |
— | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Additions |
— | — | — | 16,981 | 52,856 | 1,683 | — | 1,750 | 1,651 | 74,921 | ||||||||||||||||||||||||||||||
Discard/Disposals |
— | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Forex Adjustment |
(434,327 | ) | (2,325 | ) | (1,462,597 | ) | (67,414 | ) | (294,045 | ) | (49,353 | ) | (1,001 | ) | (13,775 | ) | (25,121 | ) | (2,349,956 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
As at 31 March 2020 |
5,231,609 |
28,001 |
17,617,449 |
820,510 |
3,568,298 |
595,315 |
12,053 |
166,799 |
303,411 |
28,343,444 |
||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Accumulated depreciation |
||||||||||||||||||||||||||||||||||||||||
As at 1 April 2018 |
— | 3,588 | 1,339,858 | 239,065 | 741,386 | 254,169 | 7,055 | 95,186 | 236,580 | 2,916,887 | ||||||||||||||||||||||||||||||
Depreciation for the year |
— | 1,156 | 316,919 | 92,589 | 287,994 | 57,194 | 1,485 | 10,054 | 43,809 | 811,200 | ||||||||||||||||||||||||||||||
Accumulated depreciation on disposals |
— | — | — | — | 2,692 | 83 | — | 59 | — | 2,834 | ||||||||||||||||||||||||||||||
Forex Adjustment |
— | (270 | ) | (97,089 | ) | (18,491 | ) | (62,668 | ) | (18,486 | ) | (505 | ) | (6,610 | ) | (16,749 | ) | (220,869 |
) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
As at 31 March 2019 |
— | 4,474 | 1,559,688 | 313,163 | 969,404 | 292,960 | 8,035 | 98,688 | 263,640 | 3,510,052 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
As at 1 April 2019 |
— |
4,474 |
1,559,688 |
313,163 |
969,404 |
292,960 |
8,035 |
98,688 |
263,640 |
3,510,052 |
||||||||||||||||||||||||||||||
Depreciation for the year |
— |
1,074 |
296,259 |
84,338 |
274,743 |
52,971 |
838 |
8,730 |
33,945 |
752,899 |
||||||||||||||||||||||||||||||
Accumulated depreciation on disposals |
— | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Forex Adjustment |
— | (384 | ) | (130,914 | ) | (27,238 | ) | (84,841 | ) | (24,487 | ) | (648 | ) | (7,900 | ) | (21,511 | ) | (297,923 |
) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
As at 31 March 2020 |
— |
5,164 |
1,725,033 |
370,263 |
1,159,306 |
321,444 |
8,225 |
99,519 |
276,075 |
3,965,028 |
||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Net block |
||||||||||||||||||||||||||||||||||||||||
31 March 2019 |
5,665,936 | 25,851 | 17,520,358 | 557,779 | 2,840,084 | 350,024 | 5,019 | 80,135 | 63,240 | 27,108,428 | ||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||||
31 March 2020 |
5,231,609 |
22,837 |
15,892,417 |
450,247 |
2,408,992 |
273,870 |
3,828 |
67,280 |
27,336 |
24,378,417 |
||||||||||||||||||||||||||||||
|
|
11 |
Intangible assets |
Computer software (internally generated platform/applications) |
Computer software |
Trademark |
Content development |
Total |
||||||||||||||||
Gross block |
||||||||||||||||||||
As at 1 April 2018 |
2,206,079 | 495,707 | 246 | 468,139 | 3,170,171 | |||||||||||||||
Additions |
1,203,852 | — | — | — | 1,203,852 | |||||||||||||||
Deletions |
— | — | — | — | ||||||||||||||||
Forex Adjustment |
(181,955 | ) | (32,121 | ) | (16 | ) | (30,335 | ) | (244,427 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
As at 31 March 2019 |
3,227,976 | 463,586 | 230 | 437,804 | 4,129,596 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
As at 1 April 2019 |
3,227,976 |
463,586 |
230 |
437,804 |
4,129,596 |
|||||||||||||||
Additions (refer note) |
663,573 |
— |
— |
— |
663,573 |
|||||||||||||||
Deletions |
— |
— |
— |
— |
— |
|||||||||||||||
Forex Adjustment |
(272,877 |
) |
(35,537 |
) |
(18 |
) |
(33,560 |
) |
(341,991 |
) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
As at 31 March 2020 |
3,618,673 |
428,050 |
212 |
404,244 |
4,451,178 |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Amortisation |
||||||||||||||||||||
As at 1 April 2018 |
401,396 | 239,159 | 111 | 191,378 | 832,044 | |||||||||||||||
Amortisation for the year |
219,398 | 61,881 | 48 | 90,493 | 371,820 | |||||||||||||||
Deletions |
— | — | — | — | — | |||||||||||||||
Forex Adjustment |
(33,118 | ) | (17,502 | ) | (9 | ) | (15,333 | ) | (65,962 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
As at 31 March 2019 |
587,676 | 283,538 | 150 | 266,538 | 1,137,902 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
As at 1 April 2019 |
587,676 |
283,538 |
150 |
266,538 |
1,137,902 |
|||||||||||||||
Amortisation for the year |
414,315 |
57,490 |
44 |
84,071 |
555,920 |
|||||||||||||||
Deletions |
— |
— |
— |
— |
||||||||||||||||
Forex Adjustment |
75,249 |
(79,225 |
) |
(56 |
) |
(104,503 |
) |
(108,534 |
) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
As at 31 March 2020 |
1,077,240 |
261,804 |
138 |
246,106 |
1,585,288 |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net block |
||||||||||||||||||||
31 March 2019 |
2,640,301 | 180,048 | 80 | 171,266 | 2,991,695 | |||||||||||||||
31 March 2020 |
2,541,433 |
166,246 |
74 |
158,137 |
2,865,890 |
19 |
Revenue from operations |
Amount in USD |
||||||||
31 March 2020 |
31 March 2019 | |||||||
Sale of services: |
||||||||
Income from hospital services |
4,534,912 |
4,909,053 | ||||||
Income from training fees |
— |
17,622 | ||||||
Income from digital dispensary consultancy |
1,226,063 |
964,183 | ||||||
Income from consultancy |
— |
10,448 | ||||||
Sale of goods: |
||||||||
Sale of pharmacy/ medicines |
746,317 |
930,339 | ||||||
Sale of digital dispensary (net of Sales return USD 545,714 (31 March 2019: 365,378)) |
2,191,804 |
21,510 | ||||||
Other operating revenue: |
||||||||
Income from government grant |
256,771 |
352,077 | ||||||
Miscellaneous income |
101,477 |
15,751 | ||||||
|
|
|
|
|||||
9,057,344 |
7,220,982 | |||||||
|
|
|
|
19.1 | During the year company has entered into revenue sharing arrangement, the contractual arrangement is on principal to principal basis for hospital at Bolpur, Sonamukhi, Malda, Jeypore & Mednipore. These hospitals were earlier operated by Company itself. The non-refundable deposit is recognised as revenue at time of entering into contract and include under income from hospital services. |
19.2 | Income from government grant represents interest and tax subsidy from government of Bihar under Bihar Industrial Investment Promotion Act, 2016. Interest subsidy is available to GHSPL Muzafarpur Healthcare LLP, GHSPL Bhaglpur Healtcare LLP & GHSPL Begusari Healthcare LLP on the term loan availed by the LLP from Allahabad Bank & State Industrial Development Bank of India. |
20 |
Other income |
Interest on bank deposits |
6,994 |
9,956 | ||||||
Interest on income tax refund |
18,521 |
2,556 | ||||||
Provision/ liability no longer required written back |
2,109,763 |
41,727 | ||||||
Miscellaneous income |
868 |
2,966 | ||||||
|
|
|
|
|||||
2,136,145 |
57,205 |
|||||||
|
|
|
|
21 |
Purchases |
Amount in USD |
||||||||
31 March 2020 |
31 March 2019 | |||||||
Medicines and medical consumables |
898,589 | 1,094,256 | ||||||
Purchase of digital dispensary |
63,122 | 144,826 | ||||||
|
|
|
|
|||||
961,711 | 1,239,083 | |||||||
|
|
|
|
22 |
Course operating expenses |
Training cost/ professional fees |
— | — | ||||||
Fooding and lodging |
— | — | ||||||
Externship expenses |
— | — | ||||||
|
|
|
|
|||||
— | — | |||||||
|
|
|
|
23 |
Changes in inventories |
Inventory at the beginning of the year |
237,285 |
204,744 | ||||||
Inventory at the end of the year |
275,905 |
255,410 | ||||||
|
|
|
|
|||||
(38,620 |
) |
(50,666 |
) | |||||
|
|
|
|
24 |
Employee benefits expense |
Salaries, wages and bonus |
1,291,639 |
1,962,288 | ||||||
Contribution to provident and other funds |
110,974 |
178,045 | ||||||
Staff welfare expenses |
35,132 |
27,215 | ||||||
|
|
|
|
|||||
1,437,745 |
2,167,548 |
|||||||
|
|
|
|
25 |
Finance costs |
31 March 2020 |
31 March 2019 | |||||||
Interest expense on: |
||||||||
- debenture |
38,743 | 448,909 | ||||||
- term loan |
1,918,935 | 1,825,196 | ||||||
- other loan |
93,988 | 126,817 | ||||||
- Cash credit |
144,621 | 130,832 | ||||||
- finance lease |
— | 109 | ||||||
Other borrowing costs |
530,982 | 517,794 | ||||||
|
|
|
|
|||||
2,727,269 |
3,049,659 |
|||||||
Less: Borrowing costs capita lised to qualifying assets |
(577,095 |
) |
(271,061 |
) | ||||
|
|
|
|
|||||
2,150,174 |
2,778,598 |
|||||||
|
|
|
|
25.1 | Interest expenses has been calculated as per contractual term mentioned in sanction letter of Banks/ Financial Insitutions. The company is in discussion with Allahabad Bank for restructuring and other financial institutions for rescheduling of the repayment terms. The management beliefs that no penal interest will be charged by the banks & financial institution and hence no provision has been recognised in the statement of profit & loss. |
26 |
Depreciation and amortisaton |
Depreciation of property, plant and equipment (PPE |
752,899 | 811,200 | ||||||
Amortisation of Goodwill |
95,982 | — | ||||||
Amortisation of intangible assets |
555,920 | 371,820 | ||||||
|
|
|
|
|||||
1,404,801 |
1,183,020 |
|||||||
|
|
|
|
27 |
Other expenses |
31 March 2020 |
Amount in USD 31 March 2019 |
|||||||
Consumption of stores and spares | 6,445 |
46,321 | ||||||
Housekeeping expenses | 95,406 |
146,309 | ||||||
Assets/Receivable written off | 7,015 |
— | ||||||
Power and fuel | 176,237 |
337,314 | ||||||
Rates and taxes | 30,818 |
27,634 | ||||||
Rent (refer note 36) | ||||||||
- equipments | 3,918 |
58,294 | ||||||
- others | 94,755 |
150,103 | ||||||
Patient food expenses | 68,707 |
108,387 | ||||||
Professional fees: | ||||||||
- to doctors | 1,579,504 |
2,320,968 | ||||||
- to others | 13,482 |
8,226 | ||||||
Repairs to building | 72,581 |
52,990 | ||||||
Repairs to surgical/medical equipment/machinery | 47,845 |
44,960 | ||||||
Repairs to others | 8,222 |
12,425 | ||||||
Payment to auditors * | 26,329 |
24,555 | ||||||
Travelling and conveyance expenses | 168,930 |
325,064 | ||||||
Advertisement and sales promotion | 231,583 |
422,016 | ||||||
Testing expenses | 60,538 |
90,702 | ||||||
Printing and stationery | 30,137 |
60,508 | ||||||
Telephone and communication expenses | 60,786 |
44,474 | ||||||
Miscellaneous expenses | 87,675 |
145,850 | ||||||
|
|
|
|
|||||
2,870,913 |
4,427,102 |
|||||||
|
|
|
|
* | Payment to auditors |
As auditor | ||||||||
Statutory audit | 21,501 |
19,503 | ||||||
Tax audit | 3,313 |
5,052 | ||||||
Reimbursement of Expenses | 1,515 |
— | ||||||
|
|
|
|
|||||
26,329 |
24,555 |
|||||||
|
|
|
|
28 |
Earnings/ (loss) per share |
Amount in USD |
||||||||
31 March 2020 |
31 March 2019 |
|||||||
Particulars |
||||||||
(Loss) attributable to equity shareholders (a) | 2,383,964 | (4,010,368 | ) | |||||
Less: Dividend on cumulative compulsorily convertible preference shares and tax thereon (b) | 1,976,118 | 1,199,941 | ||||||
Net (loss) adjusted for the effects of dilutive potential equity shares for calculation of diluted EPS [(c) = (a) - (b)] | 407,846 | (5,210,308 | ) | |||||
Weighted average number of equity shares of face value of INR 10 each outstanding during the year (used for calculating Basic EPS) (d) | 492,904 | 492,904 | ||||||
Add: Effect of potential equity shares to be issued under Compulsory | 4,152,535 | 652,947 | ||||||
Convertible Preference Shares (e) | ||||||||
Weighted average number of equity shares of face value of INR 10 each outstanding during the year (used for calculating Diluted EPS) [(f) = (d) + (e)] | 4,645,439 | 1,145,851 | ||||||
Basic earnings per share of INR 10 each [(g)= (a)/(d)] | 4.84 |
(8.14 |
) | |||||
Diluted earnings per share of INR 10 each [(h) = (c)/(f)]** | 0.09 |
(8.14 |
) |
** | Considering the impact of weighted average number of potential equity shares on account of compulsorily convertible preference shares in computation of Diluted EPS for F.Y 2018-19, the same becomes Anti-Dilutive. Accordingly Diluted EPS is equal to Basic EPS as shown above for the F.Y.2018-19. |
29 |
Contingent liability and commitments |
31 March 2020 |
31 March 2019 |
|||||||
(to the extent not provided for) | ||||||||
(a) Claims against the company not acknowledged as debts | ||||||||
(i) Bank guarantee | 156,570 | 235,385 | ||||||
(ii) Claims not acknowledged as debts (in respect of compensation demanded by the patients/ their relatives for deficiency in service) | 106,777 | 115,642 | ||||||
(iii) Arrear dividends on cumulative convertible preference shares (net of tax) from the date of issue to balance sheet date | 1,107,958 | 1,199,941 | ||||||
(iv) Others claims against the company not acknowledged as debts | — | — | ||||||
- Income tax matters | 295,874 | 320,437 | ||||||
|
|
|
|
|||||
1,667,179 | 1,871,405 | |||||||
|
|
|
|
|||||
(b) Commitments: | ||||||||
(i) Estimated amount of contracts remaining to be executed on capital account and not provided for | 9,617 | 114,405 |
30 |
Deferred tax asset/ (liability) |
Amount in USD |
||||||||
31 March 2020 |
31 March 2019 |
|||||||
Deferred tax liability |
||||||||
Difference between net book value of depreciable assets as per books and written down value as per Income tax Act, 1961 | (3,990,796 | ) | (4,301,893 | ) | ||||
|
|
|
|
|||||
Deferred tax asset |
||||||||
Provision for employee benefits | 50,613 | 78,997 | ||||||
Losses carried forward in tax returns (including current year Business losses & Unabsorbed Depreciation) | 8,001,724 | 10,499,935 | ||||||
Provision for doubtful receivables | 113,084 | 70,389 | ||||||
Others | 595,529 | 78,550 | ||||||
|
|
|
|
|||||
8,760,951 | 10,727,871 | |||||||
|
|
|
|
|||||
Deferred tax asset/(liability) recognised (to the extent of deferred tax liability above) | — | — | ||||||
|
|
|
|
31 |
There are no Micro, Small & Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as 31 March 2020. The information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED) has been determined to the extent such parties have been identified on the basis of information available with the Company. |
31 March 2020 |
31 March 2019 |
|||||||
(a) The principal amount and the interest due thereon remaining unpaid to micro and small suppliers at the end of each accounting year | ||||||||
- Principal |
Nil |
Nil | ||||||
- Interest |
Nil |
Nil | ||||||
(b) The amount of interest paid by the buyer in terms of section 16 of the Micro, Small and Medium Enterprises Development Act, 2006, along with the amount of the payment made to the supplier beyond the appointed day during each accounting year; | Nil |
Nil | ||||||
(c) The amount of interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified under MSMED; | Nil |
Nil | ||||||
(d) The amount of interest accrued and remaining unpaid at the end of each accounting year; | Nil |
Nil | ||||||
(e) The amount of further interest remaining due and payable even in the succeeding years, until such date when the interest dues above are actually paid to the small enterprise for the purpose of disallowance as a deductible expenditure under Section 23 of MSMED. | Nil |
Nil |
32 |
Employee benefits |
Defined contribution plans The Group makes contributions, determined as a specified percentage of employee salaries, in respect of qualifying employees towards Provident fund, which is a defined contribution plan. The Group has no obligations other than to make the specified contributions. The contributions are charged to the Statement of Profit and Loss as they accrue. The amount recognised as an expense towards contribution to Provident fund for the year aggregated to USD 84667 (previous year USD 82047). Defined benefit plan The group operates one post-employment defined benefit plan for gratuity. The gratuity plan entitles an employee, who has rendered at least five years of continuous service, to receive one-half month’s salary for each year of completed service at the time of retirement/exit. Refer Note 5.1. |
Amount in USD |
||||||||||
Sl. No. |
Particulars |
31 March 2020 Gratuity (unfunded) |
31 March 2019 Gratuity (unfunded) |
|||||||
(i) | Net Asset / (liability) recognised in Consolidated Balance Sheet as at the |
|||||||||
Present value of defined obligation at year end | 75,724 | 69,968 | ||||||||
Fair value of plan assets at year end | ||||||||||
Net Asset / (liability) recognised in the consolidated balance sheet | (75,724 | ) | (69,968 | ) | ||||||
(ii) | Components of employer expense |
|||||||||
Current service costs | 19,071 | 26,864 | ||||||||
Interest costs | 4,559 | 6,589 | ||||||||
Actuarial loss/(gain) recognised | (6,118 | ) | (46,762 | ) | ||||||
Past service cost | — | 55 | ||||||||
Expense recognised in the Consolidated Statement of Profit and Loss The gratuity expenses have been recognised in ‘Employee benefits expense’ under note 24 | 17,511 | (13,254 | ) | |||||||
(iii) | Change in defined benefit obligations |
|||||||||
Obligation at beginning of the year | 63,773 | 88,530 | ||||||||
Service cost | 19,071 | 26,864 | ||||||||
Past service cost | — | 55 | ||||||||
Interest cost | 4,559 | 6,589 | ||||||||
Actuarial loss/(gain) recognised | (6,118 | ) | (46,762 | ) | ||||||
Benefits paid | — | — | ||||||||
Defined benefit obligation at end of the year |
75,724 | 69,968 | ||||||||
(iv) | Assumptions |
|||||||||
Discount rate | 7.70 | % | 7.70 | % | ||||||
Salary increase | 6.5% to 10% | 6.5% to 10% | ||||||||
Mortality rate | |
IALM 06-08 Ultimate |
|
|
IALM 06-08 Ultimate |
|||||
Withdrawal rate | |
2.00% to 7.20% p.a. |
|
|
2.00% to 7.20% p.a. |
|
Amount in USD |
||||||||||
Sl. No. |
Particulars |
31 March 2020 Gratuity (unfunded) |
31 March 2019 Gratuity (unfunded) |
|||||||
(v) | The estimates of future salary increases, considered in actuarial valuation, take into account inflation, seniority, promotions and other relevant factors. | |||||||||
(vi) | Discount rate is based on the prevailing market yield of Indian Government securities as at the year end for the estimated term of the obligation. The calculation of the defined benefit obligation is sensitive to the mortality assumptions. |
Sl. No |
Particulars |
31 March 2020 |
31 March 2019 |
31 March 2018 |
31 March 2017 |
31 March 2016 |
||||||||||||||||
(vii) | Experience history - Amount of current and previous four years |
|||||||||||||||||||||
Defined benefit obligation at the end of the year | 75,724 |
69,968 | 88,530 | 71,529 | 48,956 | |||||||||||||||||
Plan assets at the end of the year | — |
— | — | — | — | |||||||||||||||||
Surplus/(deficit) | (75,724 |
) |
(69,968 | ) | (88,530 | ) | (71,529 | ) | (48,956 | ) | ||||||||||||
Experience gain/(loss) adjustment on plan liabilities | 25,124 |
27,210 | 13,215 | 14,691 | 10,894 | |||||||||||||||||
Actuarial (gain)/loss due to change in assumption | (31,008 |
) |
(32,283 | ) | (35,950 | ) | — | — | ||||||||||||||
Experience (gain)/loss adjustment on plan assets | — |
— | — | — | — |
33 |
Disclosure under Section 186 of the Companies Act 2013 |
34 |
Minority interest |
Amount in USD |
||||||||||||||||
Name of the LLPs |
Minority % 31 March 2020 |
Minority % 31 March 2019 |
31 March 2020 |
31 March 2019 |
||||||||||||
GHSPL BEGUSARAI Healthcare LLP |
5 | % | 5 | % | 30,168 | 23,506 | ||||||||||
GHSPL BGLP Super Speciality Healthcare LLP |
35 | % | 35 | % | 344,304 | 303,399 | ||||||||||
GHSPL FATEHPUR Super Speciality Healthcare LLP |
35 | % | 35 | % | 37,148 | 37,148 | ||||||||||
GHSPL JEYPORE Healthcare LLP |
35 | % | 35 | % | 396,836 | 409,385 | ||||||||||
GHSPL SAMBHAV KNJ Healthcare LLP |
35 | % | 35 | % | 75,317 | 114,676 | ||||||||||
GHSPL MLD Super Speciality Healthcare LLP |
22 | % | 22 | % | 90,740 | 44,578 | ||||||||||
GHSPL MUZF Super Speciality Healthcare LLP |
38 | % | 38 | % | 453,144 | 476,402 | ||||||||||
GHSPL MDPR Super Speciality Healthcare LLP |
2 | % | 2 | % | 58,753 | 54,513 | ||||||||||
GHSPL PRN Super Speciality Healthcare LLP |
24 | % | 24 | % | 190,007 | 190,007 | ||||||||||
GHSPL BHNGAR Super Speciality Healthcare LLP |
11 | % | 11 | % | 52,008 | 52,008 | ||||||||||
|
|
|
|
|||||||||||||
1,728,427 | 1,705,624 | |||||||||||||||
|
|
|
|
35 |
Related Party disclosures in accordance with Accounting Standard 18 prescribed under Section 133 of the Companies Act, 2013 (‘Act’) read with Rule 7 of the Companies (Accounts) Rules, 2014. |
(a) |
List of Related parties |
(i) |
Key management personnel |
(ii) |
Partner in Limited Liability Partnership firms |
(iii) |
Enterprise over which directors have significant influence |
(iv) |
Relative of key managerial personel |
Amount in USD |
||||||||||||||||||||||||||
Sl. No. |
Particulars |
Key management personnel and their relatives |
Enterprise over which directors have significant influence |
Partners in LLP |
||||||||||||||||||||||
2019-20 |
2018-19 |
2019-20 |
2018-19 |
2019-20 |
2018-19 |
|||||||||||||||||||||
1 Remuneration |
||||||||||||||||||||||||||
Dr. Syed Sabahat Azim |
65,271 | 70,257 | — | — | ||||||||||||||||||||||
Mrs. Richa Sana Azim |
47,121 | 50,720 | — | — | ||||||||||||||||||||||
Gautam Chowdhury |
52,379 | 56,380 | ||||||||||||||||||||||||
Mr. Ashutosh Kumar Shrivastava |
— | 31,322 | ||||||||||||||||||||||||
2 Short-term borrowings (taken) |
||||||||||||||||||||||||||
Kimberlite Social Infra Private Limited |
— | — | 200,862 | — | ||||||||||||||||||||||
Mrs. Richa Sana Azim |
— | 743 | ||||||||||||||||||||||||
Sampa Guha (relative of partner- Ratan Guha) |
49,234 | 29,422 | ||||||||||||||||||||||||
3 Short-term borrowings- repaid |
||||||||||||||||||||||||||
Kimberlite Social Infra Private Limited |
— | — | 794 | — | ||||||||||||||||||||||
Mrs. Richa Sana Azim |
6,212 | — | ||||||||||||||||||||||||
Gautam Chowdhury |
9,443 | 11,858 | ||||||||||||||||||||||||
4 Contribution Received |
||||||||||||||||||||||||||
Dr Mahmudul Hassan |
22,289 | |||||||||||||||||||||||||
Sumaiyah Hassan |
17,831 | |||||||||||||||||||||||||
5 Advance for supply of goods & services |
||||||||||||||||||||||||||
Ragaba Mohapatro |
1,380 |
Amount in USD |
||||||||||||||||||||||||||
Sl. No. |
Particulars |
Key management personnel and their relatives |
Enterprise over which directors have significant influence |
Partners in LLP |
||||||||||||||||||||||
2019-20 |
2018-19 |
2019-20 |
2018-19 |
2019-20 |
2018-19 |
|||||||||||||||||||||
1 Remuneration payable |
||||||||||||||||||||||||||
Dr. Syed Sabahat Azim |
41,457 | 42,613 | — | — | ||||||||||||||||||||||
Mrs. Richa Sana Azim |
50,208 | 27,553 | — | — | ||||||||||||||||||||||
Gautam Chowdhury |
||||||||||||||||||||||||||
Mr. Ashutosh Kumar Shrivastava |
||||||||||||||||||||||||||
2 Short-term borrowings |
||||||||||||||||||||||||||
Kimberlite Social Infra Private Limited |
— | — | 368,503 | 190,724 | ||||||||||||||||||||||
Richa Sana Azim |
11,948 | 19,410 | ||||||||||||||||||||||||
Gautam Chowdhury |
6,040 | 16,376 | ||||||||||||||||||||||||
Paresh Singhal |
11,284 | 12,221 | ||||||||||||||||||||||||
Paresh Singhal(Ficus) |
8,364 | 9,058 | ||||||||||||||||||||||||
Dr Mahesh Kumar |
19,914 | 21,567 | ||||||||||||||||||||||||
Sampa Guha (relative of partner- Ratan Guha) |
73,633 | 28,468 |
Amount in USD |
||||||||||||||||||||||||||
Sl. No. |
Particulars |
Key management personnel and their relatives |
Enterprise over which directors have significant influence |
Partners in LLP |
||||||||||||||||||||||
2019-20 |
2018-19 |
2019-20 |
2018-19 |
2019-20 |
2018-19 |
|||||||||||||||||||||
3 Capital Contribution |
||||||||||||||||||||||||||
Dr. Hemant Kumar |
15,931 | 17,254 | ||||||||||||||||||||||||
Dr. Hemant Kumar (current account) |
17,259 | 18,691 | ||||||||||||||||||||||||
Dr Mahesh Kumar |
195,482 | 211,711 | ||||||||||||||||||||||||
Ragaba Mohapatro |
185,861 | 201,291 | ||||||||||||||||||||||||
Ratan Guha |
26,552 | 28,756 | ||||||||||||||||||||||||
Dr Mahmudul Hassan |
172,585 | 186,913 | ||||||||||||||||||||||||
Heena Bazmi |
19,914 | 21,567 | ||||||||||||||||||||||||
Sumaiyah Hassan |
35,845 | 38,820 | ||||||||||||||||||||||||
Sambhav Learning Private Limited |
238,964 | 258,803 | ||||||||||||||||||||||||
Jinia Dasgupta |
39,827 | 43,134 | ||||||||||||||||||||||||
Dr. Parwez Khan |
33,190 | 35,945 | ||||||||||||||||||||||||
Shahnaz Begum and others |
46,465 | 50,323 | ||||||||||||||||||||||||
Good Deal Mercantile Pvt Ltd |
169,758 | 183,851 | ||||||||||||||||||||||||
4 Advance for supply of goods & services |
||||||||||||||||||||||||||
Ragaba Mohapatro |
1,328 | — |
36 |
The Company has entered into lease agreements for office premises, residential for doctors accommodations, computers & accessories and medical equipment which are cancelable during the life of the agreement at the option of either party. Minimum lease payments charged during the year to Consolidated Statement of Profit and Loss aggregates USD 98,673 (2018-19: USD 208,397). |
37 |
Expenditure in foreign currency |
31 March 2020 |
31 March 2019 |
|||||||
Interest expense on debenture (net of TDS) |
38,743 | 448,909 |
38 |
Income in foreign currency |
Income from Digital dispensary consultancy |
2,038,117 | — |
39 |
On October 22, 2020, the Company has entered into a business combination agreement with UpHealth Holdings, Inc. The transaction is agreed at a purchase consideration of $171,000,000. Post the consummation of transaction, UpHealth Holdings, Inc. will hold 100% shares in the Company. |
40 |
Segment information in accordance with Accounting Standard 17 prescribed under Section 133 of the Companies Act, 2013 (‘Act’) read with Rule 7 of the Companies (Accounts) Rules, 2014. |
41 |
This note presents the reconciliation of (i) the consolidated balance sheets, consolidated statement of profit and loss and consolidated statement of cash flows of Glocal Healthcare Systems Private Limited (“Glocal” or the “Company”) as derived from the consolidated financial statements of the Company for the year ended 31 March 2019 and 31 March 2020, prepared in accordance with the accounting principles generally accepted in India (“Indian GAAP”),incorporated above in this document, to (ii) the consolidated balance sheets, consolidated statements of operations and statement of comprehensive income and loss and consolidated statement of cash flows of the Company prepared in accordance with the accounting principles generally accepted in the United States of America (“U.S. GAAP”) and in accordance with the U.S. GAAP accounting policies as set out below. |
41.1 |
Accounting Policies |
(a) |
Revenue Recognition |
(b) |
Liabilities written back |
(c) |
Research and Development Expenses |
(d) |
Employee Benefit |
(e) |
Preference Shares |
(f) |
Business Combination |
(g) |
Income Taxes |
(h) |
Foreign Currency Translation |
(i) |
Comprehensive Income (Loss) |
(j) |
Cash and Cash Equivalents |
(k) |
Accounts Receivable and Allowance for Doubtful |
(l) |
Property and Equipment, net |
(m) |
Impairment or disposal of long-lived assets |
(n) |
Fair Value of Financial Instruments |
• | Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. |
• | Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. |
• | Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. |
Particulars |
31 March 2020 Indian GAAP |
Revaluation Reserve |
Deferred Tax |
Goodwill |
Classification of Mezzanine Equity |
Others* |
31 March 2020 US GAAP |
|||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||
Current Assets |
||||||||||||||||||||||||||||
Cash and cash equivalents |
171,867 | — | — | — | — | (43,697 | ) | 128,170 | ||||||||||||||||||||
Restricted cash |
— | — | — | — | — | 43,697 | 43,697 | |||||||||||||||||||||
Accounts Receivables, net of allowance |
4,719,956 | — | — | — | — | — | 4,719,956 | |||||||||||||||||||||
Inventories |
269,296 | — | — | — | — | — | 269,296 | |||||||||||||||||||||
Other current assets |
1,520,855 | — | — | — | — | 22,837 | 1,543,692 | |||||||||||||||||||||
6,681,974 | — | — | — | — | 22,837 | 6,704,811 | ||||||||||||||||||||||
Property, Plant & Equipment (Net) |
24,378,417 | (12,159,329 | ) | — | — | (22,837 | ) | 12,196,251 | ||||||||||||||||||||
Goodwill |
459,982 | — | — | (459,982 | ) | — | — | — | ||||||||||||||||||||
Other Intangible Assets (Net) |
2,865,890 | — | — | — | — | — | 2,865,890 | |||||||||||||||||||||
Capital work in progress |
4,637,925 | — | — | — | — | — | 4,637,925 | |||||||||||||||||||||
Restricted cash |
— | — | — | — | — | — | — | |||||||||||||||||||||
Deferred Tax Assets |
— | — | 3,036,053 | — | — | — | 3,036,053 | |||||||||||||||||||||
Other assets |
1,145,687 | — | — | — | — | — | 1,145,687 | |||||||||||||||||||||
33,487,901 | (12,159,329 | ) | 3,036,053 | (459,982 | ) | — | (22,837 | ) | 23,881,806 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Assets |
40,169,875 |
(12,159,329 |
) |
3,036,053 |
(459,982 |
) |
— |
— |
30,586,617 |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Liabilities and Stockholders Equity |
||||||||||||||||||||||||||||
Current Liabilities |
||||||||||||||||||||||||||||
Trade Payables |
1,471,145 | — | — | — | — | — | 1,471,145 | |||||||||||||||||||||
Accrued Liabilities |
5,057,967 | — | — | — | — | 85,742 | 5,143,709 | |||||||||||||||||||||
Short-term borrowings |
3,892,608 | — | — | — | — | — | 3,892,608 | |||||||||||||||||||||
Current portion of long-term borrowings |
18,776,995 | — | — | — | — | — | 18,776,995 | |||||||||||||||||||||
Short-term provisions |
7,651 | — | — | — | — | — | 7,651 | |||||||||||||||||||||
29,206,367 | — | — | — | — | 85,742 | 29,292,109 | ||||||||||||||||||||||
Long-term borrowings |
1,578,912 | — | — | — | — | — | 1,578,912 | |||||||||||||||||||||
Long-term provisions |
129,685 | — | — | — | — | — | 129,685 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total liabilities |
30,914,964 | — | — | — | — | 85,742 | 31,000,706 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Mezzanine Equity |
||||||||||||||||||||||||||||
Series A preferreds |
— | — | — | — | 2,463,470 | — | 2,463,470 | |||||||||||||||||||||
Stockholders Equity |
|
|||||||||||||||||||||||||||
Common Stock |
104,371 | — | — | — | — | — | 104,371 | |||||||||||||||||||||
Preferred Stock |
6,708,281 | — | — | — | (508,086 | ) | — | 6,200,194 | ||||||||||||||||||||
Additional paid-in-capital |
8,320,698 | — | — | (105,118 | ) | (1,955,383 | ) | — | 6,260,197 | |||||||||||||||||||
Revaluation Surplus |
10,128,170 | (10,128,170 | ) | — | — | — | — | — | ||||||||||||||||||||
Retained Earnings |
(15,158,441 | ) | — | 2,912,325 | (354,865 | ) | — | (92,331 | ) | (12,693,312 | ) | |||||||||||||||||
Foreign Currency Translation Reserve |
(2,576,594 | ) | — | — | — | — | 6,589 | (2,570,005 | ) | |||||||||||||||||||
Total shareholders equity attributable to the Group |
7,526,484 | (10,128,170 | ) | 2,912,325 | (459,982 | ) | (0 | ) | (85,742 | ) | (235,085 | ) | ||||||||||||||||
NonControlling Interest |
1,728,427 | (2,031,159 | ) | 123,728 | — | — | — | (179,005 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Stockholders Equity |
9,254,911 | (12,159,329 | ) | 3,036,053 | (459,982 | ) | (0 | ) | (85,742 | ) | (414,089 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total liabilities and stockholders equity |
40,169,875 |
(12,159,329 |
) |
3,036,053 |
(459,982 |
) |
(0 |
) |
— |
30,586,617 |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* | Others include Lease classification and interest expense. |
Particulars |
31 March 2020 Indian GAAP |
Deferred Tax |
Goodwill |
Others |
31 March 2020 US GAAP |
|||||||||||||||
Revenue |
9,057,344 | — | — | — | 9,057,344 | |||||||||||||||
Cost of revenues |
2,956,059 | — | — | — | 2,956,059 | |||||||||||||||
Gross Profit |
6,101,285 | — | — | — | 6,101,285 | |||||||||||||||
Operating expenses |
||||||||||||||||||||
Selling & Distribution expense |
231,583 | — | — | — | 231,583 | |||||||||||||||
General & Administrative expense |
2,275,690 | — | — | — | 2,275,690 | |||||||||||||||
Depreciation and amortisation |
1,404,801 | — | (95,982 | ) | — | 1,308,820 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Operating Expenses |
3,912,074 | — | (95,982 | ) | — | 3,816,092 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operating Income |
2,189,211 |
— |
95,982 |
— |
2,285,193 |
|||||||||||||||
Other income |
2,136,145 | — | — | — | 2,136,145 | |||||||||||||||
Interest expense |
2,150,174 | — | 47,631 | 2,197,805 | ||||||||||||||||
Income before income tax |
2,175,182 | — | 95,982 | (47,631 | ) | 2,223,533 | ||||||||||||||
Income tax expense |
— | 1,468,328 | — | — | 1,468,328 | |||||||||||||||
Net Income |
2,175,182 |
(1,468,328 |
) |
95,982 |
(47,631 |
) |
755,205 |
|||||||||||||
Net income attributable to non controlling interest |
22,802 | (25,339 | ) | — | — | (2,536 | ) | |||||||||||||
Net income available to the owners of the parent |
2,152,380 |
(1,442,990 |
) |
95,982 |
(47,631 |
) |
757,741 |
|||||||||||||
Net Income |
2,152,380 | (1,442,990 | ) | 95,982 | (47,631 | ) | 757,741 | |||||||||||||
Other Comprehensive Income/(loss), net of tax |
||||||||||||||||||||
Translation adjustments with no taxes effects |
(668,436 |
) |
6,589 | (661,846 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total other comprehensive income/(loss) |
(668,436 |
) |
— |
— |
6,589 |
(661,846 |
) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Comprehensive Income |
1,483,944 |
(1,442,990 |
) |
95,982 |
(41,042 |
) |
95,895 |
|||||||||||||
Comprehensive Income (loss) attributable to the non- controlling interest |
— | — | — | — |
— |
|||||||||||||||
Comprehensive Income attributable to the owners of the parent |
1,483,944 |
(1,442,990 |
) |
95,982 |
(41,042 |
) |
95,895 |
Particulars |
31 March 2020 Indian GAAP |
Others |
31 March 2020 US GAAP |
|||||||||
Net cash (used in) operating activities (A) |
1,373,293 | — | 1,373,293 | |||||||||
Net cash (used in) investing activities (B) |
(1,004,711 | ) | — | (1,004,711 | ) | |||||||
Net cash provided by financing activities (C) |
(849,365 | ) | — | (849,365 | ) | |||||||
Net (decrease) in cash and cash equivalent (A+B+C) |
(480,782 |
) |
— |
(480,782 |
) | |||||||
Cash and cash equivalents at the beginning of the year |
592,684 | — | 592,684 | |||||||||
Cash and cash equivalents at the end of the year |
111,902 |
— |
111,902 |
Particulars |
31 March 2019 Indian GAAP |
Revaluation Reserve |
Deferred Tax |
Goodwill |
Classification of Mezzanine Equity |
Others* |
31 March 2019 US GAAP |
|||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||
Current Assets |
||||||||||||||||||||||||||||
Cash and cash equivalents |
621,199 | — | — | — | — | (58,701 | ) | 562,498 | ||||||||||||||||||||
Restricted Cash |
— | — | — | — | — | 58,701 | 58,701 | |||||||||||||||||||||
Accounts Receivables, net of allowance |
3,257,573 | — | — | — | — | — | 3,257,573 | |||||||||||||||||||||
Inventories |
259,664 | — | — | — | — | — | 259,664 | |||||||||||||||||||||
Other current assets |
761,607 | — | — | — | — | 25,851 | 787,458 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
4,900,043 | — | — | — | — | 25,851 | 4,925,894 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Property, Plant & Equipment (Net) |
27,108,428 | (12,159,329 | ) | — | — | — | (25,851 | ) | 14,923,248 | |||||||||||||||||||
Goodwill |
598,136 | — | — | (598,136 | ) | — | — | 0.00 | ||||||||||||||||||||
Other Intangible Assets (Net) |
2,991,695 | — | — | — | — | — | 2,991,695 | |||||||||||||||||||||
Capital work in progress |
4,390,896 | — | — | — | — | — | 4,390,896 | |||||||||||||||||||||
Deferred Tax Assets |
— | — | 4,228,945 | — | — | — | 4,228,945 | |||||||||||||||||||||
Other assets |
1,191,401 | — | — | — | — | — | 1,191,401 | |||||||||||||||||||||
36,280,556 | (12,159,329 | ) | 4,228,945 | (598,136 | ) | — | (25,851 | ) | 27,726,186 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Assets |
41,180,599 |
(12,159,329 |
) |
4,228,945 |
(598,136 |
) |
— |
— |
32,652,080 |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Liabilities and Stockholders Equity |
||||||||||||||||||||||||||||
Current Liabilities |
||||||||||||||||||||||||||||
Accounts payables |
2,418,496 | — | — | — | — | — | 2,418,496 | |||||||||||||||||||||
Accrued Liabilities |
4,281,517 | — | — | — | — | 43,252 | 4,324,769 | |||||||||||||||||||||
Short-term borrowings |
3,943,193 | — | — | — | — | — | 3,943,193 | |||||||||||||||||||||
Current portion of long-term borrowings |
9,619,832 | — | — | — | — | — | 9,619,832 | |||||||||||||||||||||
Short-term provisions |
8,769 | — | — | — | — | — | 8,769 | |||||||||||||||||||||
20,271,806 | — | — | — | — | 43,252 | 20,315,058 | ||||||||||||||||||||||
Long-term borrowings |
13,281,012 | 13,281,012 | ||||||||||||||||||||||||||
Long-term provisions |
111,200 | — | — | — | — | — | 111,200 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total liabilities |
33,664,018 | — | — | — | — | 43,252 | 33,707,270 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Mezzanine Equity |
||||||||||||||||||||||||||||
Series A preferred shares |
— | — | — | — | 2,463,470 | — | 2,463,470 | |||||||||||||||||||||
Stockholders Equity |
||||||||||||||||||||||||||||
Common Stock |
104,371 | — | — | — | — | — | 104,371 | |||||||||||||||||||||
Redeemable Preferred Stock |
6,708,281 | — | — | — | (508,086 | ) | — | 6,200,194 | ||||||||||||||||||||
Additional paid-in-capital |
8,320,698 | — | — | (98,306 | ) | (1,955,383 | ) | — | 6,267,009 | |||||||||||||||||||
Revaluation Surplus |
10,128,170 | (10,128,170 | ) | — | — | — | — | — | ||||||||||||||||||||
Retained Earnings |
(17,542,405 | ) | 4,079,879 | (499,830 | ) | — | (44,700 | ) | (14,007,056 | ) | ||||||||||||||||||
Foreign Currency Translation Reserve |
(1,908,158 | ) | — | — | — | — | 1,448 | (1,906,710 | ) | |||||||||||||||||||
Total shareholders equity attributable to the Group |
5,810,956 | (10,128,170 | ) | 4,079,879 | (598,136 | ) | (0 | ) | (43,252 | ) | (878,722 | ) | ||||||||||||||||
Non Controlling Interest |
1,705,624 | (2,031,159 | ) | 149,066 | — | — | — | (176,468 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Stockholders Equity |
7,516,581 |
(12,159,329 |
) |
4,228,945 |
(598,136 |
) |
(0 |
) |
(43,252 |
) |
(1,055,190 |
) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total liabilities and stockholders equity |
41,180,599 |
(12,159,329 |
) |
4,228,945 |
(598,136 |
) |
(0 |
) |
— |
32,652,080 |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* | Others include Lease classification and interest expense. |
Particulars |
31 March 2019 Indian GAAP |
Deferred Tax |
Others |
31 March 2019 US GAAP |
||||||||||||
Revenue |
7,220,982 | — | — | 7,220,982 | ||||||||||||
Cost of revenues |
4,242,677 | — | — | 4,242,677 | ||||||||||||
Gross Profit |
2,978,305 | — | — | 2,978,305 | ||||||||||||
Operating expenses |
||||||||||||||||
Selling & Distribution expense |
422,016 | — | — | 422,016 | ||||||||||||
General & Administrative expense |
4,804,762 | — | — | 4,804,762 | ||||||||||||
Depreciation and amortisation |
1,183,020 | — | — | 1,183,020 | ||||||||||||
Total Operating Expenses |
6,409,798 | — | — | 6,409,798 | ||||||||||||
Operating Income |
(3,431,494 |
) |
— |
— |
(3,431,494 |
) | ||||||||||
Other income |
57,205 | — | — | 57,205 | ||||||||||||
Interest expense |
2,778,598 | — | 44,700 | 2,823,298 | ||||||||||||
Income before income tax |
(6,152,886 | ) | — | (44,700 | ) | (6,197,587 | ) | |||||||||
Income tax expense |
6,123 | (671,815 | ) | — | (665,691 | ) | ||||||||||
Net Income |
(6,159,010 |
) |
671,815 |
(44,700 |
) |
(5,531,895 |
) | |||||||||
Net income attributable to non controlling interest |
(462,252 | ) | (11,914 | ) | — | (474,166 | ) | |||||||||
Net income available to the owners of the parent |
(5,696,758 |
) |
683,729 |
(44,700 |
) |
(5,057,729 |
) | |||||||||
Net Income |
(5,696,758 | ) | 683,729 | (44,700 | ) | (5,057,729 | ) | |||||||||
Other Comprehensive Income/(loss), net of tax |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Translation adjustments with no tax effects |
(903,872 | ) | — | 1,448 | (902,424 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total other comprehensive income/(loss) |
(903,872 |
) |
— |
1,448 |
(902,424 |
) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Comprehensive Income |
(6,600,630 |
) |
683,729 |
(43,252 |
) |
(5,960,153 |
) | |||||||||
Comprehensive Income (loss) attributable to the non-controlling interest |
||||||||||||||||
Comprehensive Income attributable to the owners of the parent |
(6,600,630 |
) |
683,729 |
(43,252 |
) |
(5,960,153 |
) |
Particulars |
31 March 2019 Indian GAAP |
Other |
31 March 2019 US GAAP |
|||||||||
Net cash (used in) operating activities (A) |
1,828,874 | — | 1,828,874 | |||||||||
Net cash (used in) investing activities (B) |
(2,248,945 | ) | — | (2,248,945 | ) | |||||||
Net cash provided by financing activities (C) |
873,495 | — | 873,495 | |||||||||
Net (decrease) in cash and cash equivalent (A+B+C) |
453,425 |
— |
453,425 |
|||||||||
Cash and cash equivalents at the beginning of the year |
139,258 | — | 139,258 | |||||||||
Cash and cash equivalents at the end of the year |
592,683 | — | 592,683 |
A. |
Revaluation Reserve |
B. |
Recognition of Deferred Taxes |
C. |
Goodwill |
D. |
Classification of Preference Shares |
E. |
Lease classification |
F. |
Restricted cash classification |
G. |
Interest Expense |
42 |
Estimation of uncertainties relating to the global health pandemic from COVID-19 : |
43 |
disclosure. |
For D.K. CHHAJER & CO. |
For and on behalf of the Board of Directors of | |
Chartered Accountants |
||
Firm’s Registration Number:304138E |
Tapan K Mukhopadhyay Partner |
Dr. Syed Sabahat Azim Director |
Richa Sana Azim Director | ||
Membership No.: 017483 | DIN: 03122895 | DIN: 02609003 | ||
Place: Kolkata Date: 30th December 2020 |
Amount in USD |
||||||||||||
Note |
31 December 2020 |
31 March 2020 |
||||||||||
Unaudited |
Audited |
|||||||||||
EQUITY AND LIABILITIES |
||||||||||||
Shareholders’ funds |
||||||||||||
Share capital |
2 |
6,812,652 |
6,812,652 | |||||||||
Reserves and surplus |
3 |
3,394,029 |
713,832 | |||||||||
|
|
|
|
|||||||||
10,206,681 |
7,526,484 | |||||||||||
Minority interest |
29 |
1,787,333 |
1,728,427 |
|||||||||
Non-current liabilities |
||||||||||||
Long-term borrowings |
4 |
1,239,889 |
1,578,912 | |||||||||
Long-term provisions |
5 |
158,553 |
129,685 | |||||||||
|
|
|
|
|||||||||
1,398,442 |
1,708,597 | |||||||||||
Current liabilities |
||||||||||||
Short-term borrowings |
6 |
3,830,163 |
3,892,608 | |||||||||
Trade payables |
7 |
|||||||||||
- total outstanding dues of micro enterprises and small enterprises |
— |
— | ||||||||||
- total outstanding dues of creditors other than micro enterprises and small enterprises |
1,037,888 |
1,471,145 | ||||||||||
Other current liabilities |
8 |
23,868,737 |
23,834,963 | |||||||||
Short-term provisions |
5 |
5,972 |
7,651 | |||||||||
|
|
|
|
|||||||||
28,742,760 |
29,206,367 | |||||||||||
|
|
|
|
|||||||||
TOTAL |
42,135,216 |
40,169,875 | ||||||||||
|
|
|
|
|||||||||
ASSETS |
||||||||||||
Non-current assets |
||||||||||||
Goodwill |
9 |
402,884 |
459,982 | |||||||||
Property, plant and equipment |
10 |
24,624,769 |
24,378,417 | |||||||||
Intangible assets |
11 |
2,747,256 |
2,865,890 | |||||||||
Capital work-in-progress |
5,252,093 |
4,637,925 | ||||||||||
Long-term loans and advances |
12 |
1,043,844 |
1,125,061 | |||||||||
Other non-current assets |
13 |
44,044 |
20,626 | |||||||||
|
|
|
|
|||||||||
34,114,889 |
33,487,901 | |||||||||||
Current assets |
||||||||||||
Inventories |
14 |
311,504 |
269,296 | |||||||||
Trade receivables |
15 |
5,912,534 |
4,719,956 | |||||||||
Cash and bank balances |
16 |
342,409 |
171,867 | |||||||||
Short-term loans and advances |
17 |
725,669 |
1,008,242 | |||||||||
Other current assets |
18 |
728,210 |
512,613 | |||||||||
|
|
|
|
|||||||||
8,020,326 |
6,681,974 | |||||||||||
|
|
|
|
|||||||||
TOTAL |
42,135,215 |
40,169,875 | ||||||||||
|
|
|
|
|||||||||
Significant accounting policies |
1 |
For and on behalf of the Board of Directors of Glocal Healthcare Systems Private Limited |
Dr. Syed Sabahat Azim |
Richa Sana Azim | |||
Director |
Director | |||
DIN: 03122895 | DIN: 02609003 |
Amount in USD |
||||||||||||
For nine months ended | For nine months ended | |||||||||||
Note |
31 December 2020 |
31 December 2019 | ||||||||||
Unaudited | Unaudited | |||||||||||
Revenue from operations |
19 |
5,757,140 |
4,831,992 | |||||||||
Other income |
20 |
3,009,732 |
196,297 | |||||||||
|
|
|
|
|||||||||
Total revenue |
8,766,872 |
5,028,289 | ||||||||||
|
|
|
|
|||||||||
Expenses |
||||||||||||
Purchase |
21 |
714,850 |
788,659 | |||||||||
Course operating expenses |
22 |
— |
— | |||||||||
Changes in inventories |
23 |
(33,543 |
) |
9,013 | ||||||||
Employee benefits expense |
24 |
901,658 |
1,149,475 | |||||||||
Finance costs |
25 |
1,743,487 |
1,641,864 | |||||||||
Depreciation and amortisation |
26 |
994,403 |
1,083,670 | |||||||||
Other expenses |
27 |
1,993,736 |
2,283,134 | |||||||||
|
|
|
|
|||||||||
Total expenses |
6,314,592 |
6,955,815 | ||||||||||
|
|
|
|
|||||||||
Profit/(Loss) before tax |
2,452,280 |
(1,927,526 | ) | |||||||||
|
|
|
|
|||||||||
Income tax expense |
||||||||||||
Current tax |
— |
— | ||||||||||
Deferred tax |
— |
— | ||||||||||
|
|
|
|
|||||||||
Profit/(Loss) after tax (before adjustment of minority interest) |
2,452,280 |
(1,927,526 | ) | |||||||||
|
|
|
|
|||||||||
Minority Interest |
58,906 |
(131,621 | ) | |||||||||
|
|
|
|
|||||||||
Profit/(Loss) for the year |
2,393,374 |
(1,795,906 | ) | |||||||||
|
|
|
|
|||||||||
Earnings/(loss) per equity share [nominal value of share INR 10 each (Previous year INR 10 each)] |
28 |
|||||||||||
Basic (not annualised) |
4.86 |
(3.64 | ) | |||||||||
Diluted (not annualised) |
0.52 |
(3.64 | ) | |||||||||
Significant accounting policies |
1 |
For and on behalf of the Board of Directors of | ||
Glocal Healthcare Systems Private Limited |
Dr. Syed Sabahat Azim |
Richa Sana Azim | |||
Director |
Director | |||
DIN: 03122895 | DIN: 02609003 |
Amount in USD |
||||||||
31 December 2020 |
31 December 2019 | |||||||
Unaudited | Unaudited | |||||||
A. Cash flow from operating activities |
||||||||
Profit/(Loss) before tax |
2,452,280 |
(1,927,526 | ) | |||||
Adjustments for : |
||||||||
Depreciation and amortisation |
994,403 |
1,083,670 | ||||||
Provisions/liabilities no longer required written back |
(3,009,179 |
) |
(174,239 | ) | ||||
Interest income |
— |
(19,053 | ) | |||||
Finance costs |
1,743,487 |
1,641,864 | ||||||
|
|
|
|
|||||
(271,289 |
) |
2,532,241 | ||||||
Operating cash flow before working capital changes |
2,180,991 |
604,715 | ||||||
Adjustments for: |
||||||||
(Increase) in trade and other receivables/advances |
(583,634 |
) |
2,008,538 | |||||
Decrease in inventories |
(42,208 |
) |
17,433 | |||||
Increase in trade payables, other liabilities and provisions |
538,010 |
840,354 | ||||||
|
|
|
|
|||||
(87,832 |
) |
2,866,325 | ||||||
Cash (used in) operations |
2,093,160 |
3,471,040 | ||||||
Income taxes refund (net) |
(40,561 |
) |
(9,472 | ) | ||||
|
|
|
|
|||||
Net cash (used in) operating activities (A) |
2,052,599 |
3,461,567 | ||||||
B. Cash flow from investing activities |
||||||||
Purchase or construction of property, plant and equipment and intangible assets and movement in capital work in progress |
(159,238 |
) |
(392,294 | ) | ||||
Proceeds from sale of property, plant & equipment |
— |
— | ||||||
Bank deposits (having original maturity of more than 3 months) |
(6,740 |
) |
(486,194 | ) | ||||
Interest received |
(547 |
) |
19,170 | |||||
|
|
|
|
|||||
Net cash (used in) investing activities (B) |
(166,524 |
) |
(859,318 | ) | ||||
C. Cash flow from financing activities |
||||||||
Proceeds from borrowings (net) |
(1,479,939 |
) |
(2,416,024 | ) | ||||
Finance costs paid |
(158,354 |
) |
(730,133 | ) | ||||
|
|
|
|
|||||
Net cash provided by financing activities (C) |
(1,638,293 |
) |
(3,146,157 | ) | ||||
|
|
|
|
|||||
Net (decrease) in cash and cash equivalent (A+B+C) |
247,782 |
(543,907 | ) | |||||
|
|
|
|
|||||
Cash and cash equivalents at the beginning of the year |
48,777 |
592,684 | ||||||
|
|
|
|
|||||
Cash and cash equivalents at the end of the year (Refer Note (i) below) |
296,559 |
48,777 | ||||||
|
|
|
|
|||||
Notes: |
||||||||
(i) Components of cash and cash equivalent (refer note 16) |
||||||||
Cash on hand |
216,092 |
39,578 | ||||||
Balance with banks |
||||||||
On current accounts |
79,098 |
8,847 | ||||||
On deposit accounts (with original maturity of 3 months or less) |
1,369 |
352 | ||||||
|
|
|
|
|||||
296,559 |
48,777 |
(ii) | The above cash flow statement has been prepared under the ‘Indirect Method’ as set out in the Accounting Standard 3 on Cash Flow Statement (AS 3 ) specified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014. |
Dr. Syed Sabahat Azim |
Richa Sana Azim | |
Director |
Director | |
DIN: 03122895 |
DIN: 02609003 |
S.No |
Name of the subsidiaries |
Country of incorporation |
Percentage of ownership interest as at 31 December 2020 |
Percentage of ownership interest as at 31 December 2019 | ||||
1 |
GHSPL Multispeciality Hospital & Trauma Centre Private Limited |
India | 100% |
100% | ||||
2 |
Ficus Health-Infra Private Limited |
India | 100% |
100% |
S.No |
Name of the subsidiaries |
Country of incorporation |
Percentage of ownership interest as at 31 December 2020 |
Percentage of ownership interest as at 31 December 2019 | ||||||||
Capital contribution ratio |
Profit sharing ratio |
Capital contribution ratio |
Profit sharing ratio | |||||||||
1 | GHSPL AMRO Super Speciality Healthcare LLP |
India | 100.00% |
100.00% |
100.00% | 100.00% | ||||||
2 | GHSPL BEGUSARAI Healthcare LLP |
India | 95.00% |
95.00% |
95.00% | 95.00% | ||||||
3 | GHSPL BGLP Super Speciality Healthcare LLP |
India | 50.00% |
65.00% |
50.00% | 65.00% | ||||||
4 | GHSPL FATEHPUR Super Speciality Healthcare LLP |
India | 50.00% |
65.00% |
50.00% | 65.00% | ||||||
5 | GHSPL JEYPORE Healthcare LLP |
India | 50.00% |
65.00% |
50.00% | 65.00% | ||||||
6 | GHSPL SAMBHAV KNJ Healthcare LLP |
India | 50.00% |
65.00% |
50.00% | 65.00% | ||||||
7 | GHSPL MLD Super Speciality Healthcare LLP |
India | 63.00% |
78.00% |
63.00% | 78.00% | ||||||
8 | GHSPL MUZF Super Speciality Healthcare LLP |
India | 42.00% |
62.00% |
42.00% | 62.00% | ||||||
9 | GHSPL SAMBHAV RP Healthcare LLP |
India | 83.33% |
96.00% |
83.33% | 96.00% | ||||||
10 | GHSPL SAMBHAV BSP Healthcare LLP |
India | 50.00% |
65.00% |
50.00% | 65.00% | ||||||
11 | GHSPL JAUNPUR Super Speciality Healthcare LLP |
India | 100.00% |
100.00% |
100.00% | 100.00% | ||||||
12 | GHSPL JSPR Healthcare LLP |
India | 100.00% |
100.00% |
100.00% | 100.00% | ||||||
13 | GHSPL BEM Healthcare LLP |
India | 50.00% |
65.00% |
50.00% | 65.00% |
S.No |
Name of the subsidiaries |
Country of incorporation |
Percentage of ownership interest as at 31 December 2020 |
Percentage of ownership interest as at 31 December 2019 | ||||||||
Capital contribution ratio |
Profit sharing ratio |
Capital contribution ratio |
Profit sharing ratio | |||||||||
14 | GHSPL AMBEDKAR SCAN Super Speciality Healthcare LLP |
India | 100.00% |
100.00% |
100.00% | 100.00% | ||||||
15 | GHSPL ARA Super Speciality Healthcare LLP |
India | 100.00% |
100.00% |
100.00% | 100.00% | ||||||
16 | GHSPL ASNSL Super Speciality Healthcare LLP |
India | 100.00% |
100.00% |
100.00% | 100.00% | ||||||
17 | GHSPL FRBD Super Speciality Healthcare LLP |
India | 100.00% |
100.00% |
100.00% | 100.00% | ||||||
18 | GHSPL MDPR Super Speciality Healthcare LLP |
India | 92.00% |
98.00% |
92.00% | 98.00% | ||||||
19 | GHSPL SHRNPR Super Speciality Healthcare LLP |
India | 100.00% |
100.00% |
100.00% | 100.00% | ||||||
20 | GHSPL SJPR Super Speciality Healthcare LLP |
India | 100.00% |
100.00% |
100.00% | 100.00% | ||||||
21 | GHSPL STP Super Speciality Healthcare LLP |
India | 50.00% |
65.00% |
50.00% | 65.00% | ||||||
22 | GHSPL SW Healthcare LLP |
India | 100.00% |
100.00% |
100.00% | 100.00% | ||||||
23 | GHSPL DGHR Super Speciality Healthcare LLP |
India | 100.00% |
100.00% |
100.00% | 100.00% | ||||||
24 | GHSPL DNBD Super Speciality Healthcare LLP |
India | 100.00% |
100.00% |
100.00% | 100.00% | ||||||
25 | GHSPL GYA Super Speciality Healthcare LLP |
India | 100.00% |
100.00% |
100.00% | 100.00% | ||||||
26 | GHSPL PRN Super Speciality Healthcare LLP |
India | 60.00% |
76.00% |
60.00% | 76.00% | ||||||
27 | GHSPL DARBHANGA Super Speciality Healthcare LLP |
India | 50.00% |
65.00% |
50.00% | 65.00% | ||||||
28 | GHSPL BALASORE Super Speciality Healthcare LLP |
India | 100.00% |
100.00% |
100.00% | 100.00% | ||||||
29 | GHSPL BASTI Super Speciality Healthcare LLP |
India | 100.00% |
100.00% |
100.00% | 100.00% | ||||||
30 | GHSPL VARANASI Super Speciality Healthcare LLP |
India | 100.00% |
100.00% |
100.00% | 100.00% | ||||||
31 | GHSPL PURI Super Speciality Healthcare LLP |
India | 100.00% |
100.00% |
100.00% | 100.00% | ||||||
32 | GHSPL CNTA Super Speciality Healthcare LLP |
India | 100.00% |
100.00% |
100.00% | 100.00% | ||||||
33 | GHSPL JHRSD Super Speciality Healthcare LLP |
India | 100.00% |
100.00% |
100.00% | 100.00% | ||||||
34 | GHSPL ALIGR Super Speciality Healthcare LLP |
India | 100.00% |
100.00% |
100.00% | 100.00% | ||||||
35 | GHSPL BHNGAR Super Speciality Healthcare LLP |
India | 56.00% |
89.00% |
56.00% | 89.00% | ||||||
36 | GHSPL MRBD Super Speciality Healthcare LLP |
India | 100.00% |
100.00% |
100.00% | 100.00% | ||||||
37 | GHSPL SMBL Super Speciality Healthcare LLP |
India | 100.00% |
100.00% |
100.00% | 100.00% |
S.No |
Name of the subsidiaries |
Country of incorporation |
Percentage of ownership interest as at 31 December 2020 |
Percentage of ownership interest as at 31 December 2019 | ||||||||
Capital contribution ratio |
Profit sharing ratio |
Capital contribution ratio |
Profit sharing ratio | |||||||||
38 | GHSPL KNPR Super Speciality Healthcare LLP |
India | 100.00% |
100.00% |
100.00% | 100.00% | ||||||
39 | GHSPL Patna Super Speciality Healthcare LLP |
India | 100.00% |
100.00% |
100.00% | 100.00% | ||||||
40 | GHSPL Dhubri Super Speciality Healthcare LLP |
India | 100.00% |
100.00% |
100.00% | 100.00% |
1 |
Significant accounting policies |
(a) |
Basis of preparation of consolidated financial statements: |
(b) |
Principles of consolidation |
(c) |
Use of estimates |
(d) |
Current–non-current classification |
(e) |
Revenue recognition |
(f) |
Liabilities Written back |
(g) |
Property, plant and equipment(PPE) |
(h) |
Depreciation |
Building |
60 years | |||
Electrical Equipment |
10 years | |||
Medical & Surgical Equipment |
13 years | |||
Furniture & Fixtures |
10 years | |||
Vehicles |
10 years | |||
Office Equipment |
5 Years | |||
Computers and accessories |
3 Years |
(i) |
Intangible assets |
(j) |
Amortisation |
(k) |
Government grants |
(l) |
Impairment of property, plant & equipment and intangible assets |
(m) |
Inventories |
(n) |
Foreign currency transaction |
(o) |
Operating leases |
(p) |
Investments |
(q) |
Employee benefits |
(r) |
Taxation |
(s) |
Provisions and contingent liabilities |
(t) |
Earnings/(loss) per share |
(u) |
Discount on issue of debentures |
(v) |
Cash and cash equivalents |
(w) |
Cash flow statement |
(x) |
Going Concern |
2 |
Share capital |
Amount in USD |
||||||||||||||||
31 December 2020 |
31 March 2020 |
|||||||||||||||
Number of shares |
Amount |
Number of shares |
Amount |
|||||||||||||
Authorised |
||||||||||||||||
Equity shares of INR 10 each |
13,500,000 |
2,075,515 |
13,500,000 |
2,075,515 |
||||||||||||
Preference shares of INR 100 each |
5,000,000 |
7,049,949 |
5,000,000 |
7,687,092 |
||||||||||||
Preference shares of Re. 1 each |
3,200,000 |
45,120 |
3,200,000 |
49,197 |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
21,700,000 |
9,170,583 |
21,700,000 |
9,811,805 |
|||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Issued, subscribed and paid up |
||||||||||||||||
Equity Shares |
||||||||||||||||
Equity shares of INR 10 each |
492,904 |
104,371 |
492,904 |
104,371 |
||||||||||||
Preferred Stock |
||||||||||||||||
0.001% Compulsorily Convertible Cumulative Preference Shares—Series A of INR 100 each |
240,777 |
508,086 |
240,777 |
508,086 |
||||||||||||
0.001% Compulsorily Convertible Cumulative Preference Shares—Series C of INR 100 each |
254,936 |
406,102 |
254,936 |
406,102 |
||||||||||||
0.001% Compulsorily Convertible Cumulative Preference Shares—Series C1 of INR 100 each |
157,234 |
243,565 |
157,234 |
243,565 |
||||||||||||
8% Compulsorily Convertible Cumulative Preference Shares of INR 100 each |
3,499,588 |
5,550,528 |
3,499,588 |
5,550,528 |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
4,645,439 |
6,812,652 |
4,645,439 |
6,812,652 |
||||||||||||
|
|
|
|
|
|
|
|
a) |
Reconciliation of the shares outstanding at the beginning and at the end of the period: |
Equity shares of INR10 each fully paid up |
| |||||||||||||||
At the commencement and at the end of the period |
492,904 |
104,371 |
492,904 |
104,371 |
||||||||||||
Shares issued during the period |
— |
— |
— |
— |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
At the end of the period |
492,904 |
104,371 |
492,904 |
104,371 |
||||||||||||
0.001% Compulsorily Convertible Cumulative Preference Shares—Series A |
| |||||||||||||||
At the commencement and at the end of the period |
240,777 |
508,086 |
240,777 |
508,086 |
||||||||||||
Shares converted into equity shares during the period |
— |
— |
— |
— |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
At the end of the period |
240,777 |
508,086 |
240,777 |
508,086 |
||||||||||||
0.001% Compulsorily Convertible Cumulative Preference Shares—Series C |
| |||||||||||||||
At the commencement and at the end of the period |
254,936 |
406,102 |
254,936 |
406,102 |
||||||||||||
Shares issued during the period |
— |
— |
— |
— |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
At the end of the period |
254,936 |
406,102 |
254,936 |
406,102 |
||||||||||||
0.001% Compulsorily Convertible Cumulative Preference Shares—Series C1 |
| |||||||||||||||
At the commencement and at the end of the period |
157,234 |
243,565 |
157,234 |
243,565 |
||||||||||||
Shares issued during the period |
— |
— |
— |
— |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
At the end of the period |
157,234 |
243,565 |
157,234 |
243,565 |
||||||||||||
8% Compulsorily Convertible Cumulative Preference Shares |
| |||||||||||||||
At the commencement of the period |
3,499,588 |
5,550,528 |
3,499,588 |
5,550,528 |
||||||||||||
Shares issued during the period |
— |
— |
— |
— |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
At the end of the period |
3,499,588 |
5,550,528 |
3,499,588 |
5,550,528 |
b) |
Shares held by holding company: |
c) |
Details of shareholders holding more than 5% are as follows |
Number of shares |
% of shares held |
Number of shares |
% of shares held |
|||||||||||||
Equity shares of INR 10 each fully paid up held by |
||||||||||||||||
Dr. Syed Sabahat Azim |
154,000 |
31.24 |
154,000 |
31.24 |
||||||||||||
Mrs. Richa Sana Azim |
154,000 |
31.24 |
154,000 |
31.24 |
||||||||||||
Mr. M. Damodaran |
52,855 |
10.72 |
52,855 |
10.72 |
||||||||||||
Elevar Equity Mauritius |
52,555 |
10.66 |
52,555 |
10.66 |
||||||||||||
0.001% Compulsorily Convertible Cumulative Preference Shares—Series A |
| |||||||||||||||
Elevar Equity Mauritius |
146,616 |
60.89 |
146,616 |
60.89 |
||||||||||||
Sequoia Capital India Investment Holdings III |
94,161 |
39.11 |
94,161 |
39.11 |
||||||||||||
0.001% Compulsorily Convertible Cumulative Preference Shares—Series C |
| |||||||||||||||
Elevar Equity Mauritius |
125,774 |
49.34 |
125,774 |
49.34 |
||||||||||||
Sequoia Capital India Investment Holdings III |
62,887 |
24.67 |
62,887 |
24.67 |
||||||||||||
Mr. M. Damodaran |
45,311 |
17.77 |
45,311 |
17.77 |
||||||||||||
Kimberlite Social Infra Private Limited |
20,964 |
8.22 |
20,964 |
8.22 |
||||||||||||
0.001% Compulsorily Convertible Cumulative Preference Shares—Series C1 |
| |||||||||||||||
Elevar Equity Mauritius |
157,234 |
100 |
157,234 |
100 |
||||||||||||
8% Compulsorily Convertible Cumulative Preference Shares SIDBI Trustee Company Limited A/C Samridhi Fund |
3,499,588 |
100 |
3,499,588 |
100 |
d) |
Rights, preferences and restrictions in respect of each class of shares including restrictions on the distribution of dividends and the repayment of capital: |
3 |
Reserves and surplus |
31 December 2020 |
31 March 2020 |
|||||||
Securities premium account |
8,320,698 | 8,320,698 | ||||||
Revaluation surplus |
10,128,170 | 10,128,170 | ||||||
General reserve |
331,361 | 331,361 | ||||||
Foreign Currency Translation reserve |
(2,289,772 | ) | (2,576,594 | ) | ||||
Surplus in Statement of Profit and Loss |
||||||||
At the commencement of the period (1st April) |
(15,489,802 | ) | (17,873,766 | ) | ||||
Add: Profit/(Loss) for the period |
2,393,374 | 2,383,964 | ||||||
|
|
|
|
|||||
Balance as at the end of the period |
(13,096,428 |
) |
(15,489,802 |
) | ||||
|
|
|
|
|||||
Total reserves and surplus |
3,394,029 |
713,832 |
||||||
|
|
|
|
4 |
Long-term borrowings |
Amount in USD |
||||||||||||||||||||
Non-current portion |
Current portion* |
|||||||||||||||||||
Secured/ unsecured |
31 December 2020 |
31 March 2020 |
31 December 2020 |
31 March 2020 |
||||||||||||||||
204,540 (previous year: 204,540) 13.55% non-convertible debentures of INR 1,000 each |
Secured | — | — | — | 2,715,433 | |||||||||||||||
Less: Discount on issue of debenture to the extent not written off or adjusted |
— | — | — | — | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
— |
— |
— |
2,715,433 |
|||||||||||||||||
Term loans from Banks |
Secured | — | — | 13,019,207 | 12,630,603 | |||||||||||||||
Term loan from Small Industries Development Bank of India |
Secured | 515,531 | 561,155 | 119,084 | 107,534 | |||||||||||||||
Term loan from National Skill Development Corporation |
Secured | 363,730 | 695,997 | 1,793,564 | 1,396,354 | |||||||||||||||
Term loan from Caspian Impact Investments Private Limited |
Unsecured | — | — | 1,369,060 | 1,327,580 | |||||||||||||||
Term loan from Blacksoil capital Private Limited |
secured | 193,327 | — | 217,493 | 362,333 | |||||||||||||||
Equipment loan |
Secured | 167,300 | 321,760 | 427,475 | 237,157 | |||||||||||||||
|
|
|||||||||||||||||||
1,239,889 |
1,578,912 |
16,945,884 |
18,776,995 |
|||||||||||||||||
|
|
* | Amount disclosed under Other current liabilities - Note 8 |
(a) |
Secured non-convertible debenture |
(i) | The Company had issued 13.55% redeemable non-convertible debenture of face value of INR 1,000 each aggregating to INR 204,540,000 (USD 2,715,433) at a discount of 0.95% on face value on 19 March 2016 to Essential Capital Consortium BV on private placement basis. These debentures are redeemable at par in two equal instalments of INR 102,270,000 (USD 1,478,574) each on 5 May 2019 and 5 November 2019 and in case put option is exercised by debenture holder, the total balance of INR 204,540,000 (USD 287,172) has to be repaid on any date not earlier than 11 February 2019. Interest is payable semi-annually at the rate of 13.55% per annum (net of withholding tax) on interest payment dates or earlier in case upon the exercise of the put option (interest payment starting from 5 May 2016 and ending on 5 November 2019 and in case put option is exercised, starting from 5 May 2016 and ending on 11 February 2019 ) as per Mortgage Cum Debenture Trust Deed dated 4 February 2016. |
In view of contribution of company in the field of medicine especially during the COVID situation, USAID has decided to approve grant by paying off its debts towards Essential Capital Consortium (ECC). The grant has been approved and charged satisfaction has been filed on 13th June 2020.The company has written back the debenture of INR 204,540,000 (USD 2,799,716) and interest accrued and due on debenture of INR 13,712,945 (USD 187,701)under other income. |
(ii) | These debentures are secured by way of a second ranking and continuing charge by way of registered mortgage on the; |
(a) | immovable secured properties i.e rights in relation to; |
(i) | piece and parcel of garden land at Sonamukhi (District: Bankura) together with all buildings, constructions and plant and machinery erected thereon, both present and future. |
(ii) | piece and parcel of land at Bolpur (District: Birbhum) together with all buildings, constructions and plant and machinery erected thereon, both present and future. |
(iii) | piece and parcel of land at Behrampore (District: Murshidabad) together with all buildings, constructions and plant and machinery erected thereon, both present and future. |
(iv) | rooftop of one-storied building, ground floor stalls and rear vacant land at Dubrajpur (District: Birbhum) together with all buildings, constructions and plant and machinery erected thereon, both present and future |
(v) | office space together with all constructions and plant and machinery erected thereon at Ecospace, New Town Rajarhat (Kolkata) |
(b) | movable assets in relation to hospitals at Sonamukhi (District: Bankura), Dubrajpur (District: Birbhum), Behrampur (District: Bankura), Bolpur (District: Birbhum) and head office at Ecospace, New Town Rajarhat (Kolkata). |
(b) |
Term loans from Allahabad Bank |
(i) | Term loan from Allahabad Bank is secured by; |
(ii) | Interest on the above Term Loan-I, II & III carries an interest of 1-year MCLR plus 3.10% p.a. at monthly rests and is payable as and when due. And Term Loan IV and V carries an interest of 1-year MCLR plus 4.10% p.a. at monthly rests and is payable as and when due. |
(iii) | The Company has been disputing the EMIs being deducted by Allahabad bank since 2017 in respect to hospital projects that have not achieved COD especially as the disbursal also started late. The Bank and the Company are entering into a restructuring proposal to resolve this issue. The Techno Economic viability report with positive recommendation has been submitted by Dun & Bradstreet which was appointed by bank to examine and report on the viability and Independent Credit Rating has been given by the approved rating agency. It is expected that the restructuring process will be completed in 2021. During this time the loan has been classified by the Bank as technical npa pending closure of restructuring process. |
(c) |
Term loan from Small Industries Development Bank of India (SIDBI) |
(i) | Term loan from SIDBI is secured by : |
(ii) | The term loan have been sanctioned for INR 66,500,000 (USD 882,841) for setting up of hospital and purchase of medical instruments and surgical equipment at Beguasarai, Bihar and is repayable in 96 monthly instalments after a moratorium of 2 years from the date of first disbursement of loan. Tentative start date is 10 April 2017 and tentative last instalment date is 10 March 2025. |
(iii) | Above term loan carries an interest of SIDBI’s Prime Lending Rate (PLR) plus 1.50%, at monthly rests and is payable as and when applied. |
(d) |
Term loan from National Skill Development Corporation |
(i) | Term loan from National Skill Development Corporation is secured by: |
(ii) | The rate of interest being charged is simple interest of 6% p.a. payable on a quarterly basis after the interest-free moratorium period of two years from the date of first disbursement of the loan. |
(iii) | The principal and interest is overdue as on 30th December 2020. |
(e) |
Term loan from Caspian Impact Investments Pvt. Ltd. |
(i) | Term loan from Caspian Impact Investments Pvt. Ltd. is unsecured and other terms are: |
(f) |
Term loan from Blacksoil Capital Private Limited |
Term | loan from Black Soil Private Limited is unsecured and other terms are: |
(g) |
Loan from Hero Fincorp |
(i) | Term loan amounting to Nil |
(ii) | The term loan has been sanctioned for INR 70,000,000 (USD 929,306) as working capital loan & INR 60,000,000 (USD 796,548) as term loan for capex requirements- production & expansion of digital dispensary business and takeover of existing term loan from SIDBI & IIFL respectively. |
(iii) | Above term loan is carries an interest of Hero Fincorp Prime Lending Rate @ 13% p.a. at monthly rests |
(h) |
Overdue payment of loan |
Particulars |
Principal Amount |
Interest Amount |
Period | |||||||
Allahabad Bank Loan |
||||||||||
TL-1 |
1,979,263 | 391,485 | 1. Principal Amount due upto December 2020 2. Interest amount due upto December 2020 | |||||||
TL-2 |
1,336,147 | 264,765 | ||||||||
TL-3 |
2,366,672 | 573,124 | 1. Principal Amount due upto December 2020 | |||||||
TL-4 |
2,539,829 | 657,246 | 1. Principal Amount due upto December 2020 2. Interest amount due upto December 2020 | |||||||
TL-5 |
5,686,335 | 1,391,224 | 1. Principal Amount due upto December 2020 2. Interest amount due upto December 2020 | |||||||
National Skill Development Corporation (NSDC) |
1,082,148 | 460,282 | 1. Principal Amount due upto December 2020 | |||||||
|
|
|
|
|||||||
Total |
14,990,393 |
3,738,126 |
||||||||
|
|
|
|
5 Provisions |
Amount in USD |
Long-term |
Short-term |
|||||||||||||||
31 December 2020 |
31 March 2020 |
31 December 2020 |
31 March 2020 |
|||||||||||||
Provision for employee benefits |
||||||||||||||||
Gratuity |
94,856 |
78,161 |
3,425 |
3,322 | ||||||||||||
Compensated absences |
63,697 |
51,524 |
2,547 |
2,471 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
158,553 |
129,685 |
5,972 |
5,793 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Other provisions |
||||||||||||||||
Provision for Income Tax |
— | — | — | 1,859 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
— |
— |
— |
1,859 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
158,553 |
129,685 |
5,972 |
7,651 | |||||||||||||
|
|
|
|
|
|
|
|
6 |
Short-term borrowings |
31 December 2020 |
31 March 2020 |
|||||||
Cash credit facilities from bank (secured) |
1,035,788 |
1,117,699 | ||||||
Unsecured loan |
||||||||
- loan from Hero Fincorp Ltd |
958,151 |
929,306 | ||||||
- loan from related party |
362,679 |
373,962 | ||||||
- loan from directors |
20,942 |
20,312 | ||||||
- loan from others |
1,452,602 |
1,451,329 | ||||||
|
|
|
|
|||||
3,830,163 |
3,892,608 | |||||||
|
|
|
|
6.1 | Cash credit facilities from Allahabad Bank has been sanctioned with a limit of INR 50,000,000 (USD 663,790) for working capital requirement of the five existing operational hospitals of the Company with a margin of 25% and is secured by first and exclusive charge of hypothecation of all the current assets of the five units and administrative office of the Company (both present and future), further, secured by (along with bank guarantee) second charge on land and building, plant and machineries and other fixed assets of the five existing operational hospitals under the Company’s direct ownership (both present and future). The cash credit facilities carry an interest rate of one year MCLR plus 3.10% p.a. computed on a monthly basis on the actual amount utilised and are repayable as and when due. |
6.2 | Interest free loan taken from directors and related parties are repayable on demand. |
6.3 | a. Loan taken from others is repayable on demand. |
6.4 |
Loan from Hero Fincorp |
(i) | Term loan is secured by: |
(ii) | The term loan has been sanctioned for INR 70,000,000 (USD 929,306) as working capital loan & INR 60,000,000 (USD 862,678) as term loan for capex requirements- production & expansion of digital dispensary business and takeover of existing term loan from SIDBI & IIFL respectively. The term loan facility for takeover of loan from SIDBI & IIFL has not been availed and hence got expired. So the charge created against immovable property is still lying with SIDBI. |
(iii) | Above term loan carries an interest of Hero Fincorp Prime Lending Rate @ 13% p.a. at monthly rests |
(iv) | As per circular DOR.No.BP.BC.47/21.04.048/2019-20 dated March 27, 2020 regulatory measures were announced by RBI to mitigate the burden of debt servicing brought about by disruptions on account of |
COVID-19 pandemic by granting a moratorium of three months on payment of all instalments falling due between March 1, 2020 and May 31, 2020. Further, this relief was extended till August 31, 2020 and this package has been taken up the company and installments has been rescheduled accordingly. |
7 |
Trade payables |
31 December 2020 |
31 March 2020 |
|||||||
Total outstanding dues of micro enterprises and small enterprises |
— |
— | ||||||
Total outstanding dues of creditors other than micro enterprises and small enterprises (Net of Advances for goods) |
1,037,888 |
1,471,145 | ||||||
|
|
|
|
|||||
1,037,888 |
1,471,145 | |||||||
|
|
|
|
8 |
Other current liabilities |
31 December 2020 |
31 March 2020 |
|||||||
Current maturities of long-term debts (refer note 4) |
16,945,884 |
18,776,995 | ||||||
Interest accrued and due on term loans |
4,019,143 |
2,275,228 | ||||||
Interest accrued but not due on loan |
100,238 |
— | ||||||
Interest accrued and due on cash credit |
256,787 |
145,101 | ||||||
Interest accrued and due on equipment loan |
33,592 |
32,465 | ||||||
Interest accrued and due on other loan |
277,995 |
118,523 | ||||||
Interest accrued but not due on debentures |
— |
— | ||||||
Interest accrued but and due on debentures |
— |
182,050 | ||||||
Creditors for capital goods (Net of Capital Advances) |
— |
178,446 | ||||||
Employee benefits payable |
596,325 |
539,903 | ||||||
Temporary Book Overdraft |
3,732 |
— | ||||||
Advance from TPA & Customers |
445,367 |
431,960 | ||||||
Partner’s Current A/c |
17,794 |
17,259 | ||||||
Statutory dues payable |
||||||||
Provident fund |
346,879 |
274,585 | ||||||
Professional tax |
15,027 |
12,484 | ||||||
Employee state insurance payable |
188,519 |
166,695 | ||||||
Tax deducted at source payable |
289,960 |
327,555 | ||||||
Goods and services tax payable |
45,163 |
88,504 | ||||||
Unearned revenue |
135,504 |
131,424 | ||||||
Advance from patients and others |
13,675 |
7,220 | ||||||
Other liabilities/ payables |
137,154 |
128,565 | ||||||
|
|
|
|
|||||
23,868,737 |
23,834,963 | |||||||
|
|
|
|
8.1 |
i. Major clients of the company are ESIC, PSU’s and various other government departments. There has been major delay in receipt of payment from their side which is creating challenges for the company to meet its operational expenses which includes statutory obligations also. |
8.2 |
Advance receipt of INR 30 mm from S.S Earth Moving Mining was for setup of dispensary setup in their mining area. But no space was allocated to us by them, hence setup is not done. |
8.3 |
Advance include amount received from African medical supply for supply of DD setup but due to COVID outbreak same could not be fulfilled. |
8.4 |
Regarding interest accrued and due with respect to the term loan taken from Allahabad bank, the company has been disputing the EMIs being deducted by the bank since 2017 in respect to hospital projects, that have not achieved COD especially as the disbursal also started late. The Bank and the company are entering into a restructuring proposal to resolve this issue. The Techno Economic viability report with positive recommendation has been submitted by Dun & Bradstreet which was appointed by bank to examine and report on the viability and Independent Credit Rating has been given by the approved rating agency. It is expected that the restructuring process will be completed in 2021. During this time the loan has been classified by the Bank as technical NPA pending closure of restructuring process. As the account has been declared technical NPA by the bank so no interest has been charged by the bank but following the concept of mercantile system of accounting interest on term loan from Allahabad Bank and interest on cash credit limit has been calculated and charged in expenses. This interest has been classified as Interest accrued and due under other current liabilities. |
9 |
Goodwill |
31 December 2020 |
31 March 2020 |
|||||||
Opening balance |
459,982 |
598,136 | ||||||
Amortisation of Goodwill |
(70,285 |
) |
(95,982 | ) | ||||
Forex Adjustment |
13,187 |
(42,172 | ) | |||||
|
|
|
|
|||||
Closing balance |
402,884 |
459,982 | ||||||
|
|
|
|
12 |
Long-term loans and advances |
31 December 2020 |
31 March 2020 |
|||||||
(Unsecured and considered good) |
||||||||
To parties other than related parties | ||||||||
(a) Capital advances (net of Creditors for Capital goods) |
417,032 |
544,996 | ||||||
(b) Security deposits |
170,885 |
166,558 | ||||||
|
|
|
|
|||||
587,917 |
711,553 | |||||||
(c) Other loans and advances | ||||||||
TDS receivables |
455,927 |
413,507 | ||||||
|
|
|
|
|||||
455,927 |
413,507 | |||||||
|
|
|
|
|||||
1,043,844 |
1,125,061 | |||||||
|
|
|
|
13 |
Other non-current assets |
31 December 2020 |
31 March 2020 |
|||||||
(Unsecured and considered good) |
||||||||
Bank deposits (due to mature after 12 months from the reporting date) [refer note 16]* |
42,707 |
19,289 | ||||||
Balance with government authorities |
682 |
661 | ||||||
Interest accrued on bank deposits |
— |
41 | ||||||
Interest accrued on electricity deposits |
655 |
636 | ||||||
|
|
|
|
|||||
44,044 |
20,626 | |||||||
|
|
|
|
14 |
Inventories |
(Valued at lower of cost and net realisable value) |
||||||||
Stock of digital dispensary, medicine and medical consumables |
307,629 |
265,330 | ||||||
Stores and spares |
3,875 |
3,966 | ||||||
|
|
|
|
|||||
311,504 |
269,296 | |||||||
|
|
|
|
15 |
Trade receivables |
(a) Unsecured and considered good |
5,912,534 |
4,719,956 | ||||||
(b) Doubtful |
(448,440 |
) |
434,940 | |||||
Less: Provision for doubtful receivables |
448,440 |
(434,940 | ) | |||||
|
|
|
|
|||||
5,912,534 |
4,719,956 | |||||||
Other receivables | ||||||||
(a) Unsecured, considered good |
— | |||||||
— | ||||||||
|
|
|
|
|||||
— |
||||||||
|
|
|
|
16 |
Cash and bank balances |
31 December 2020 |
31 March 2020 |
|||||||
Cash and cash equivalents |
||||||||
Cash on hand |
216,092 |
32,083 | ||||||
Balance with banks: |
— | |||||||
On current accounts |
79,098 |
71,853 | ||||||
On deposit accounts (with original maturity of 3 months or less) |
1,369 |
7,965 | ||||||
|
|
|
|
|||||
296,558 |
111,901 | |||||||
Other bank balances: |
— | |||||||
Deposits in banks with maturity of more than 3 months but less than 12 months* |
45,851 |
59,965 | ||||||
|
|
|
|
|||||
342,409 |
171,867 | |||||||
|
|
|
|
*Bank | deposits of USD 13,688 as on 31 December 2020 ( 31 March 2020—USD 13,276) have been pledged with Black Soil as security for term loan |
*Bank | deposits of USD 31,365 as on 31 December 2020 ( 31 March 2020- USD 30,421) have been given as cash margin to banks for issuing bank guarantees to government authorities. |
17 |
Short-term loans and advances |
(Unsecured and considered good) |
||||||||
To parties other than related parties |
||||||||
Security deposits |
39,379 |
37,376 | ||||||
Prepaid expenses |
1,483 |
2,652 | ||||||
Advance for supply of goods and services |
73,245 |
493,214 | ||||||
Advance to doctors |
— |
26,339 | ||||||
Advances to employees |
549,456 |
396,399 | ||||||
Advances to others |
62,106 |
52,262 | ||||||
|
|
|
|
|||||
725,669 |
1,008,242 | |||||||
|
|
|
|
18 |
Other current assets |
(Unsecured and considered good) |
||||||||
Interest accrued on bank deposits |
16,807 |
16,261 | ||||||
Government grant receivable |
707,500 |
492,567 | ||||||
Unbilled revenue |
3,903 |
3,786 | ||||||
|
|
|
|
|||||
728,210 |
512,613 | |||||||
|
|
|
|
Particulars |
WDV as on 31.12.2020 |
WDV as on 31.03.2020 |
||||||
Freehold land |
5,393,991 | 5,231,609 | ||||||
Leasehold land |
22,747 | 22,837 | ||||||
Buildings |
16,169,070 | 15,892,417 | ||||||
Electrical equipment |
405,390 | 450,247 | ||||||
Medical & surgical equipment |
2,304,044 | 2,408,993 | ||||||
Furniture and fixtures |
243,973 | 273,870 | ||||||
Vehicles |
3,280 | 3,828 | ||||||
Office equipment |
64,599 | 67,280 | ||||||
Computers and accessories |
17,675 | 27,336 | ||||||
|
|
|
|
|||||
Total |
24,624,769 |
24,378,417 |
||||||
|
|
|
|
Particulars |
WDV as on 31.12.2020 |
WDV as on 31.03.2020 |
||||||
Computer software (internally generated platform/applications) |
2,553,133 | 2,541,433 | ||||||
Computer software |
114,403 | 166,246 | ||||||
Trademark |
33 | 74 | ||||||
Content development |
79,687 | 158,137 | ||||||
|
|
|
|
|||||
Total |
2,747,256 |
2,865,890 |
||||||
|
|
|
|
19 |
Revenue from operations |
Amount in USD |
||||||||||
31 December 2020 |
31 December 2019 | |||||||||
Sale of services: | ||||||||||
Income from hospital services | 3,923,554 |
3,442,155 | ||||||||
Income from digital dispensary consultancy | 979,116 |
885,709 | ||||||||
Sale of goods: |
||||||||||
Sale of pharmacy/ medicines | 581,675 |
613,423 | ||||||||
Sale of digital dispensary (net of Sales return :Nil (31 December 2019: USD 530,802 )) |
— |
(381,022 | ) | |||||||
Other operating revenue: |
||||||||||
Income from government grant* | 188,028 |
213,028 | ||||||||
Miscellaneous income | 84,767 |
58,699 | ||||||||
|
|
|
|
|||||||
5,757,140 |
4,831,992 |
|||||||||
|
|
|
|
19.1 | The company has entered into revenue sharing arrangement, the contractual arrangement is on principal to principal basis for hospital at Bolpur, Sonamukhi, Malda, Jeypore & Mednipore. These hospitals were earlier operated by Company itself. Reveue sharing arrangement is included within Income from Hospital Services. |
19.2 | Income from government grant represents interest and tax subsidy from government of Bihar under Bihar Industrial Investment Promotion Act, 2016. Interest subsidy is available to GHSPL Muzafarpur Healthcare LLP, GHSPL Bhaglpur Healtcare LLP & GHSPL Begusari Healthcare LLP on the term loan availed by the LLP from Allahabad Bank & State Industrial Development Bank of India. |
20 |
Other income |
Interest on income tax refund |
— |
19,053 | ||||||
Provision/ liability no longer required written back (N |
3,009,179 |
174,239 | ||||||
Miscellaneous income |
553 |
3,004 | ||||||
|
|
|
|
|||||
3,009,732 |
196,297 |
|||||||
|
|
|
|
20.1 | On March 19, 2016 company has issued 13.55% Non-convertible Debentures worth INR 204,540,000 (USD 2,715,433) to Essential Consortium Capital but in view of the contribution of company in the field of medicine, especially during the COVID situation, USAID has decided to approve grants by paying off its debts towards Essential Capital Consortium(ECC). Hence, provision /liability no longer required includes write off Debentures, Interest thereon and liability towards ECC worth INR 223,673,406 (USD 3,014,824) |
21 |
Purchases |
Medicines and medical consumables | 692,497 |
723,745 | ||||||
Purchase of digital dispensary | 22,353 |
64,912 | ||||||
|
|
|
|
|||||
714,850 |
788,659 |
|||||||
|
|
|
|
22 |
Course operating expenses |
Training cost/ professional fees | — |
— | ||||||
Food and lodging | — |
— | ||||||
Externship expenses | — |
— | ||||||
|
|
|
|
|||||
— |
— | |||||||
|
|
|
|
23 |
Changes in inventories |
Inventory at the beginning of the year | 269,385 |
244,108 | ||||||
Inventory at the end of the year | 302,928 |
235,094 | ||||||
|
|
|
|
|||||
(33,543 |
) |
9,013 |
||||||
|
|
|
|
24 |
Employee benefits expense |
Salaries, wages and bonus | 799,744 |
1,069,157 | ||||||
Contribution to provident and other funds | 90,672 |
54,943 | ||||||
Staff welfare expenses | 11,242 |
25,375 | ||||||
|
|
|
|
|||||
901,658 |
1,149,475 |
|||||||
|
|
|
|
25 |
Finance costs |
Interest expense on: | ||||||||
- debenture |
— |
39,857 | ||||||
- term loan |
1,693,351 |
1,472,201 | ||||||
- other loan |
210,416 |
244,643 | ||||||
- equipment loan |
49,701 |
60,436 | ||||||
- Cash credit |
102,055 |
103,366 | ||||||
Unsecured loan |
150,856 |
144,226 | ||||||
Other borrowing costs | 80 |
23,064 | ||||||
|
|
|
|
|||||
2,206,457 |
2,087,794 |
|||||||
Less: Borrowing costs capitalised to qualifying assets | (462,970 |
) |
(445,930 |
) | ||||
|
|
|
|
|||||
1,743,487 |
1,641,864 |
|||||||
|
|
|
|
25.1 | Interest expenses as been calculated as per contractual term mentioned in sanction letter of Banks/ Financial Institutions. The company is in discussion with Allahabad Bank for restructuring and other financial institutions for rescheduling of the repayment terms. The management beliefs that no penal interest will be charged by the banks & financial institution and hence no provision has been recognised in the statement of profit & loss. |
26 |
Depreciation and amortisaton |
Depreciation of property, plant and equipment (PPE) | 527,556 |
580,685 | ||||||
Amortisation of Goodwill | 70,285 |
74,056 | ||||||
Amortisation of intangible assets | 396,562 |
428,929 | ||||||
|
|
|
|
|||||
994,403 |
1,083,670 |
|||||||
|
|
|
|
Consumption of stores and spares | 9,914 |
1,827 | ||||||
Share of O&M Partner | 160,850 |
— | ||||||
Housekeeping expenses | 60,585 |
83,212 | ||||||
Power and fuel | 103,320 |
186,882 | ||||||
Rates and taxes | 12,241 |
18,054 | ||||||
Rent (refer note 36) | ||||||||
- equipment | 2,667 |
5,111 | ||||||
- others | 55,311 |
76,300 | ||||||
Patient food expenses | 41,634 |
56,404 | ||||||
Professional fees: | ||||||||
- to doctors | 1,110,138 |
1,222,559 | ||||||
- to others | 8,447 |
29,112 | ||||||
Repairs to building | 49,077 |
63,415 | ||||||
Repairs to surgical/medical equipment/machinery | 19,508 |
35,362 | ||||||
Repairs to others | 6,447 |
5,823 | ||||||
Payment to auditors | 18,196 |
14,873 | ||||||
Travelling and conveyance expenses | 102,767 |
156,770 | ||||||
Advertisement and sales promotion | 106,732 |
253,094 | ||||||
Testing expenses | 71,034 |
56,980 | ||||||
Printing and stationery | 20,352 |
32,006 | ||||||
Telephone and communication expenses | 26,224 |
51,386 | ||||||
Miscellaneous expenses | 77,189 |
73,173 | ||||||
Less: Capitalisation for internally generated software | (68,898 |
) |
(139,207 | ) | ||||
|
|
|
|
|||||
1,993,736 |
2,283,134 | |||||||
|
|
|
|
28 |
Earnings/ (loss) per share |
31 December 2020 |
31 December 2019 |
|||||||
Particulars |
||||||||
Profit/(Loss) attributable to equity shareholders (a) | 2,393,374 | (1,795,906 | ) | |||||
Less: Dividend on cumulative compulsorily convertible preference shares and tax thereon (b) | 2,037,454 | 903,956 | ||||||
Net profit/(loss) adjusted for the effects of dilutive potential equity shares for calculation of diluted EPS [(c) = (a)—(b)] | 355,920 | (2,699,861 | ) | |||||
Weighted average number of equity shares of face value of INR 10 each outstanding during the year (used for calculating Basic EPS) (d) | 492,904 | 492,904 | ||||||
Add: Effect of potential equity shares to be issued under Compulsory Convertible Preference Shares (e)* | 4,152,535 | 652,947 | ||||||
Weighted average number of equity shares of face value of INR 10 each outstanding during the year (used for calculating Diluted EPS) [(f) = (d) + (e)] | 4,645,439 | 1,145,851 | ||||||
Basic earnings per share of INR 10 each [(g)= (a)/(d)] (not annualised) | 4.86 |
(3.64 |
) | |||||
Diluted earnings per share of INR 10 each [(h) = (c)/(f)] (not annualised)** | 0.52 |
(3.64 |
) |
29 |
Minority interest |
Amount in USD |
||||||||||||||||
Name of the LLPs |
Minority % 31 December 2020 |
Minority% 31 March 2020 |
31 December 2020 |
31 March 2020 |
||||||||||||
GHSPL BEGUSARAI Healthcare LLP |
5 | % | 5 | % | 40,264 | 30,168 | ||||||||||
GHSPL BGLP Super Speciality Healthcare LLP |
35 | % | 35 | % | 347,441 | 344,304 | ||||||||||
GHSPL FATEHPUR Super Speciality Healthcare LLP |
35 | % | 35 | % | 37,148 | 37,148 | ||||||||||
GHSPL JEYPORE Healthcare LLP |
35 | % | 35 | % | 349,164 | 396,836 | ||||||||||
GHSPL SAMBHAV KNJ Healthcare LLP |
35 | % | 35 | % | 110,098 | 75,317 | ||||||||||
GHSPL MLD Super Speciality Healthcare LLP |
22 | % | 22 | % | 121,579 | 90,740 | ||||||||||
GHSPL MUZF Super Speciality Healthcare LLP |
38 | % | 38 | % | 479,589 | 453,144 | ||||||||||
GHSPL MDPR Super Speciality Healthcare LLP |
2 | % | 2 | % | 60,034 | 58,753 | ||||||||||
GHSPL PRN Super Speciality Healthcare LLP |
24 | % | 24 | % | 190,007 | 190,007 | ||||||||||
GHSPL BHNGAR Super Speciality Healthcare LLP |
11 | % | 11 | % | 52,008 | 52,008 | ||||||||||
|
|
|
|
|||||||||||||
1,787,333 |
1,728,427 |
|||||||||||||||
|
|
|
|
30 |
On October 22, 2020, the Company has entered into a business combination agreement with UpHealth Holdings, Inc. The transaction is agreed at a purchase consideration of $171 million. Post the consummation of transaction, UpHealth Holdings, Inc. will hold 100% shares in the Company. |
31. | This note presents the reconciliation of (i) the unaudited interim consolidated balance sheets, unaudited interim consolidated statement of profit and loss and unaudited interim consolidated statement of cash flows of Glocal Healthcare Systems Private Limited (“Glocal” or the “Company”) as derived from the unaudited interim consolidated financial statements of the Company for the nine months ended 31 December 2019 and 31 December 2020, prepared in accordance with the accounting principles generally accepted in India (“Indian GAAP”),incorporated above in this document, to (ii) the unaudited interim consolidated balance sheets, unaudited interim consolidated statements of operations and unaudited statement of comprehensive income and loss and unaudited consolidated statement of cash flows of the Company prepared in accordance with the accounting principles generally accepted in the United States of America (“U.S. GAAP”) and in accordance with the U.S. GAAP accounting policies as set out below. |
31.1 |
Accounting Policies |
(a) |
Revenue Recognition |
(b) |
Liabilities written back |
(c) |
Research and Development Expenses |
(d) |
Employee Benefit |
(e) |
Preference Shares |
(f) |
Business Combination |
(g) |
Income Taxes |
(h) |
Foreign Currency Translation |
(i) |
Comprehensive Income (Loss) |
(j) |
Cash and Cash Equivalents |
(k) |
Accounts Receivable and Allowance for Doubtful |
(l) |
Property and Equipment, net |
(m) |
Impairment or disposal of long-lived assets |
(n) |
Fair Value of Financial Instruments |
• | Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. |
• | Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. |
• | Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. |
Particulars |
31 December 2020 Indian GAAP |
Revaluation Reserve |
Deferred Tax |
Goodwill |
Classification of Mezzanine Equity |
Others* |
31 December 2020 US GAAP |
|||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||
Current Assets |
||||||||||||||||||||||||||||
Cash and cash equivalents |
342,409 | — | — | — | — | (45,053 | ) | 297,356 | ||||||||||||||||||||
Restricted cash |
— | — | — | — | — | 45,053 | 45,053 | |||||||||||||||||||||
Accounts Receivables, net of allowance |
5,912,534 | — | — | — | — | — | 5,912,534 | |||||||||||||||||||||
Inventories |
311,504 | — | — | — | — | — | 311,504 | |||||||||||||||||||||
Other current assets |
1,453,879 | — | — | — | — | 22,747 | 1,476,626 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
8,020,326 | — | — | — | — | 22,747 | 8,043,073 | ||||||||||||||||||||||
Property, Plant & Equipment (Net) |
24,624,769 | (12,159,329 | ) | — | — | (22,747 | ) | 12,442,693 | ||||||||||||||||||||
Goodwill |
402,884 | — | — | (402,884 | ) | — | — | — | ||||||||||||||||||||
Other Intangible Assets (Net) |
2,747,256 | — | — | — | — | — | 2,747,256 | |||||||||||||||||||||
Capital work in progress |
5,252,093 | — | — | — | — | — | 5,252,093 | |||||||||||||||||||||
Restricted cash |
— | — | — | — | — | — | — | |||||||||||||||||||||
Deferred Tax Assets |
— | — | 3,855,318 | — | — | — | 3,855,318 | |||||||||||||||||||||
Other assets |
1,087,888 | — | — | — | — | — | 1,087,888 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
34,114,889 | (12,159,329 | ) | 3,855,318 | (402,884 | ) | — | (22,747 | ) | 25,385,249 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Assets |
42,135,215 |
(12,159,329 |
) |
3,855,318 |
(402,884 |
) |
— |
— |
33,428,322 |
|||||||||||||||||||
Liabilities and Stockholders Equity |
|
|||||||||||||||||||||||||||
Current Liabilities |
||||||||||||||||||||||||||||
Accounts payables |
1,037,888 | — | — | — | — | — | 1,037,888 | |||||||||||||||||||||
Accrued Liabilities |
6,922,853 | — | — | — | — | 123,824 | 7,046,677 | |||||||||||||||||||||
Short-term borrowings |
3,830,163 | — | — | — | — | — | 3,830,163 | |||||||||||||||||||||
Current portion of long- term borrowings |
16,945,884 | — | — | — | — | — | 16,945,884 | |||||||||||||||||||||
Short-term provisions |
5,972 | — | — | — | — | — | 5,972 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
28,742,760 | — | — | — | — | 123,824 | 28,866,584 | ||||||||||||||||||||||
Long-term borrowings |
1,239,889 | — | — | — | — | — | 1,239,889 | |||||||||||||||||||||
Long-term provisions |
158,553 | — | — | — | — | — | 158,553 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total liabilities |
30,141,202 | — | — | — | — | 123,824 | 30,265,026 | |||||||||||||||||||||
Mezzanine Equity |
||||||||||||||||||||||||||||
Series A preferred shares |
— | — | — | — | 2,463,470 | — | 2,463,470 | |||||||||||||||||||||
Stockholders Equity |
||||||||||||||||||||||||||||
Common Stock |
104,371 | — | — | — | — | — | 104,371 | |||||||||||||||||||||
Money received against share warrant |
— | — | — | — | — | — | — | |||||||||||||||||||||
Preferred Stock |
6,708,281 | — | — | — | (508,086 | ) | — | 6,200,194 | ||||||||||||||||||||
Additional paid-in-capital |
8,320,698 | — | — | (105,118 | ) | (1,955,383 | ) | — | 6,260,197 | |||||||||||||||||||
Revaluation Surplus |
10,128,170 | (10,128,170 | ) | — | — | — | — | — | ||||||||||||||||||||
Retained Earnings |
(12,765,067 | ) | — | 3,731,590 | (310,953 | ) | — | (115,584 | ) | (9,460,013 | ) | |||||||||||||||||
Foreign Currency Translation Reserve |
(2,289,772 | ) | — | — | 13,187 | — | (8,240 | ) | (2,284,825 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total shareholders equity attributable to the Group |
10,206,680 | (10,128,170 | ) | 3,731,590 | (402,884 | ) | (0 | ) | (123,824 | ) | 3,283,394 | |||||||||||||||||
Non Controlling Interest |
1,787,333 | (2,031,159 | ) | 123,728 | — | — | — | (120,099 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Stockholders Equity |
11,994,013 | (12,159,329 | ) | 3,855,318 | (402,884 | ) | (0 | ) | (123,824 | ) | 3,163,295 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total liabilities and stockholders equity |
42,135,215 |
(12,159,329 |
) |
3,855,318 |
(402,884 |
) |
(0 |
) |
— |
33,428,321 |
* | Others include Lease classification and interest expense. |
Particulars |
31 December 2020 Indian GAAP |
Deferred Tax |
Goodwill |
Others |
31 December 2020 US GAAP |
|||||||||||||||
Revenue |
5,757,140 | — | — | — | 5,757,140 | |||||||||||||||
Cost of revenues |
2,226,596 | — | — | — | 2,226,596 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Gross Profit |
3,530,544 | — | — | — | 3,530,544 | |||||||||||||||
Operating expenses |
||||||||||||||||||||
Selling & Distribution expense |
106,732 | — | — | — | 106,732 | |||||||||||||||
General & Administrative expense |
341,715 | — | — | — | 341,715 | |||||||||||||||
Employee benefits expense |
901,658 | — | — | — | 901,658 | |||||||||||||||
Depreciation and amortisation |
994,403 | — | (70,285 | ) | — | 924,118 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Operating Expenses |
2,344,508 | — | (70,285 | ) | — | 2,274,223 | ||||||||||||||
Operating Income |
1,186,036 |
— |
70,285 |
— |
1,256,321 |
|||||||||||||||
Other income |
3,009,732 | — | — | — | 3,009,732 | |||||||||||||||
Interest expense |
1,743,487 | — | 23,253 | 1,766,740 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income before income tax |
2,452,280 | — | 70,285 | (23,253 | ) | 2,499,313 | ||||||||||||||
Income tax expense |
— | (819,265 | ) | — | — | (819,265 | ) | |||||||||||||
— | ||||||||||||||||||||
Net Income |
2,452,280 |
819,265 |
70,285 |
(23,253 |
) |
3,318,578 |
||||||||||||||
Net income attributable to non controlling interest |
58,906 | 50,868 | — | — | 109,774 | |||||||||||||||
Net income available to the owners of the parent |
2,393,374 |
768,397 |
70,285 |
(23,253 |
) |
3,208,804 |
||||||||||||||
Net Income |
2,393,374 | 768,397 | 70,285 | (23,253 | ) | 3,208,804 | ||||||||||||||
Other Comprehensive Income/(loss), net of tax |
||||||||||||||||||||
Translation adjustments |
286,822 |
(8,240 | ) | 278,583 | ||||||||||||||||
Total other comprehensive income/(loss) |
286,822 |
— |
— |
(8,240 |
) |
278,583 |
||||||||||||||
Comprehensive Income |
2,680,197 |
768,397 |
70,285 |
(31,492 |
) |
3,487,387 |
||||||||||||||
Comprehensive Income (loss) attributable to the non- controlling interest |
— | — | — | — | — | |||||||||||||||
Comprehensive Income attributable to the owners of the parent |
2,680,197 |
768,397 |
70,285 |
(31,492 |
) |
3,487,387 |
Particulars |
31 December 2020 Indian GAAP |
Others |
31 December 2020 US GAAP |
|||||||||
Net cash (used in) operating activities (A) |
2,052,599 | — | 2,052,599 | |||||||||
Net cash (used in) investing activities (B) |
(166,524 | ) | — | (166,524 | ) | |||||||
Net cash provided by financing activities (C) |
(1,638,293 | ) | — | (1,638,293 | ) | |||||||
Net (decrease) in cash and cash equivalent (A+B+C) |
247,782 |
— |
247,782 |
|||||||||
Cash and cash equivalents at the beginning of the year |
48,777 | — | 48,777 | |||||||||
Cash and cash equivalents at the end of the year |
296,559 |
— |
296,559 |
Particulars |
31 March 2020 Indian GAAP |
Revaluation Reserve |
Deferred Tax |
Goodwill |
Classification of Mezzanine Equity |
Others* |
31 March 2020 US GAAP |
|||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||
Current Assets |
||||||||||||||||||||||||||||
Cash and cash equivalents |
171,867 | — | — | — | — | (43,697 | ) | 128,170 | ||||||||||||||||||||
Restricted Cash |
— | — | — | — | — | 43,697 | 43,697 | |||||||||||||||||||||
Accounts Receivables, net of allowance |
4,719,956 | — | — | — | — | — | 4,719,956 | |||||||||||||||||||||
Inventories |
269,296 | — | — | — | — | — | 269,296 | |||||||||||||||||||||
Other current assets |
1,520,855 | — | — | — | — | 22,837 | 1,543,692 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
6,681,974 | — | — | — | — | 22,837 | 6,704,810 | ||||||||||||||||||||||
Property, Plant & Equipment (Net) |
24,378,417 | (12,159,329 | ) | — | — | — | (22,837 | ) | 12,196,252 | |||||||||||||||||||
Goodwill |
459,982 | — | — | (459,982 | ) | — | — | — | ||||||||||||||||||||
Other Intangible Assets (Net) |
2,865,890 | — | — | — | — | — | 2,865,890 | |||||||||||||||||||||
Capital work in progress |
4,637,925 | — | — | — | — | — | 4,637,925 | |||||||||||||||||||||
Deferred Tax Assets |
— | — | 3,036,053 | — | — | — | 3,036,053 | |||||||||||||||||||||
Other assets |
1,145,687 | — | — | — | — | — | 1,145,687 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
33,487,901 | (12,159,329 | ) | 3,036,053 | (459,982 | ) | — | (22,837 | ) | 23,881,806 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Assets |
40,169,874 |
(12,159,329 |
) |
3,036,053 |
(459,982 |
) |
— |
— |
30,586,616 |
|||||||||||||||||||
Liabilities and Stockholders Equity |
|
|||||||||||||||||||||||||||
Current Liabilities |
||||||||||||||||||||||||||||
Accounts payables |
1,471,145 | — | — | — | — | — | 1,471,145 | |||||||||||||||||||||
Accrued Liabilities |
3,991,240 | — | — | — | — | 85,742 | 4,076,983 | |||||||||||||||||||||
Short-term borrowings |
3,892,608 | — | — | — | — | — | 3,892,608 | |||||||||||||||||||||
Current portion of long- term borrowings |
19,843,722 | — | — | — | — | — | 19,843,722 | |||||||||||||||||||||
Short-term provisions |
7,651 | — | — | — | — | — | 7,651 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
29,206,367 | — | — | — | — | 85,742 | 29,292,109 | ||||||||||||||||||||||
Long-term borrowings |
1,578,912 | 1,578,912 | ||||||||||||||||||||||||||
Long-term provisions |
129,685 | — | — | — | — | — | 129,685 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total liabilities |
30,914,964 | — | — | — | — | 85,742 | 31,000,706 | |||||||||||||||||||||
Mezzanine Equity |
||||||||||||||||||||||||||||
Series A preferred shares |
— | — | — | — | 2,463,470 | — | 2,463,470 | |||||||||||||||||||||
Stockholders Equity |
||||||||||||||||||||||||||||
Common Stock |
104,371 | — | — | — | — | — | 104,371 | |||||||||||||||||||||
Redeemable Preferred Stock |
6,708,281 | — | — | — | (508,086 | ) | — | 6,200,194 | ||||||||||||||||||||
Additional paid-in-capital |
8,320,698 | — | — | (105,118 | ) | (1,955,383 | ) | — | 6,260,197 | |||||||||||||||||||
Revaluation Surplus |
10,128,170 | (10,128,170 | ) | — | — | — | — | — | ||||||||||||||||||||
Retained Earnings |
(15,158,441 | ) | 2,912,325 | (354,865 | ) | — | (92,331 | ) | (12,693,312 | ) | ||||||||||||||||||
Foreign Currency Translation Reserve |
(2,576,594 | ) | — | — | — | — | 6,589 | (2,570,005 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total shareholders equity attributable to the Group |
7,526,484 | (10,128,170 | ) | 2,912,325 | (459,982 | ) | (0 | ) | (85,742 | ) | (235,085 | ) | ||||||||||||||||
Non Controlling Interest |
1,728,427 | (2,031,159 | ) | 123,728 | — | — | — | (179,005 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Stockholders Equity |
9,254,911 |
(12,159,329 |
) |
3,036,053 |
(459,982 |
) |
(0 |
) |
(85,742 |
) |
(414,089 |
) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total liabilities and stockholders equity |
40,169,875 |
(12,159,329 |
) |
3,036,053 |
(459,982 |
) |
(0 |
) |
— |
30,586,617 |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* | Others include Lease classification and interest expense. |
Particulars |
31 December 2019 Indian GAAP |
Deferred Tax |
Goodwill |
Others |
31 December 2019 US GAAP |
|||||||||||||||
Revenue |
4,831,992 | — | — | — | 4,831,992 | |||||||||||||||
Cost of revenues |
2,414,182 | — | — | — | 2,414,182 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Gross Profit |
2,417,810 | — | — | — | 2,417,810 | |||||||||||||||
Operating expenses |
||||||||||||||||||||
Selling & Distribution expense |
253,094 | — | — | — | 253,094 | |||||||||||||||
General & Administrative expense |
413,530 | — | — | — | 413,530 | |||||||||||||||
Employee benefits expense |
1,149,475 | — | — | — | 1,149,475 | |||||||||||||||
Depreciation and amortisation |
1,083,670 | — | (70,285 | ) | — | 1,013,385 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Operating Expenses |
2,899,769 | — | (70,285 | ) | — | 2,829,484 | ||||||||||||||
Operating Income |
(481,959 |
) |
— |
70,285 |
— |
(411,674 |
) | |||||||||||||
Other income |
196,297 | — | — | — | 196,297 | |||||||||||||||
Interest expense |
1,641,864 | — | 32,042 | 1,673,906 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income before income tax |
(1,927,526 | ) | — | 70,285 | (32,042 | ) | (1,889,283 | ) | ||||||||||||
Income tax expense |
— | (967,452 | ) | — | — | (967,452 | ) | |||||||||||||
Net Income |
(1,927,526 |
) |
967,452 |
70,285 |
(32,042 |
) |
(921,830 |
) | ||||||||||||
Net income attributable to non controlling interest |
(131,621 | ) | 17,485 | — | — | (114,135 | ) | |||||||||||||
Net income available to the owners of the parent |
(1,795,906 |
) |
949,967 |
70,285 |
(32,042 |
) |
(807,695 |
) | ||||||||||||
Net Income |
(1,795,906 | ) | 949,967 | 70,285 | (32,042 | ) | (807,695 | ) | ||||||||||||
Other Comprehensive Income/(loss), net of tax |
||||||||||||||||||||
Translation adjustments |
(390,819 | ) | — | 6,589 | (384,229 | ) | ||||||||||||||
Comprehensive Income |
(390,819 |
) |
— |
— |
6,589 |
(384,229 |
) | |||||||||||||
Total other comprehensive income/(loss) |
(2,186,724 |
) |
949,967 |
70,285 |
(25,452 |
) |
(1,191,924 |
) | ||||||||||||
Comprehensive Income (loss) attributable to the non- controlling interest |
— | — | — | |||||||||||||||||
Comprehensive Income attributable to the owners of the parent |
(2,186,724 |
) |
949,967 |
70,285 |
(25,452 |
) |
(1,191,924 |
) |
Particulars |
31 December 2019 Indian GAAP |
Other |
31 December 2019 US GAAP |
|||||||||
Net cash (used in) operating activities (A) |
3,461,567 | — | 3,461,567 | |||||||||
Net cash (used in) investing activities (B) |
(859,318 | ) | — | (859,318 | ) | |||||||
Net cash provided by financing activities (C) |
(3,146,157 | ) | — | (3,146,157 | ) | |||||||
Net (decrease) in cash and cash equivalent (A+B+C) |
(543,907 |
) |
— |
(543,907 |
) | |||||||
Cash and cash equivalents at the beginning of the year |
592,684 | — | 592,684 | |||||||||
Cash and cash equivalents at the end of the year |
48,777 | — | 48,777 |
A. |
Revaluation Reserve |
B. |
Recognition of Deferred Taxes |
C. |
Goodwill |
D. |
Classification of Preference Shares |
E. |
Lease classification |
F. |
Restricted cash classification |
G. |
Interest Expense |
32 |
The Company has considered the possible effects that may result from the pandemic relating to COVID-19 on the carrying amounts of receivables and investment in subsidiaries. In developing the assumptions relating to the possible future uncertainties in the global economic conditions because of this pandemic, the Company, as at the date of approval of these financial statements has used internal and external sources of information including credit economic forecasts. There is no significant impact on the Group’s Business on account of pandemic. The impact of COVID-19 remains uncertain and may be different from what we have estimated as of the date of approval of these consolidated financial statements and the Company will continue to closely monitor any material changes to future economic conditions. |
For and on behalf of the Board of Directors of | ||
Glocal Healthcare Systems Private Limited |
Dr. Syed Sabahat Azim Director |
Richa Sana Azim Director | |||
DIN: 03122895 | DIN: 02609003 |
Amount in USD |
||||||||||||
Note |
25 March 2021 |
31-Mar-20 |
||||||||||
Unaudited |
Audited |
|||||||||||
EQUITY AND LIABILITIES |
||||||||||||
Shareholders’ funds |
||||||||||||
Share capital |
2 |
6,812,652 |
6,812,652 | |||||||||
Reserves and surplus |
3 |
3,214,839 |
713,832 | |||||||||
|
|
|
|
|||||||||
10,027,491 |
7,526,484 | |||||||||||
Minority interest |
30 |
1,852,582 |
1,728,427 | |||||||||
Non-current liabilities |
||||||||||||
Long-term borrowings |
4 |
1,611,624 |
1,578,912 | |||||||||
Long-term provisions |
5 |
167,539 |
129,685 | |||||||||
|
|
|
|
|||||||||
17,79,163 |
17,08,597 | |||||||||||
Current liabilities |
||||||||||||
Short-term borrowings |
6 |
3,853,498 |
3,892,608 | |||||||||
Trade payables |
7 |
|||||||||||
- total outstanding dues of micro enterprises and small enterprises |
— |
|||||||||||
- total outstanding dues of creditors other than micro enterprises and small enterprises |
578,719 |
1,471,145 | ||||||||||
Other current liabilities |
8 |
24,714,399 |
23,834,963 | |||||||||
Short-term provisions |
5 |
8,252 |
7,651 | |||||||||
|
|
|
|
|||||||||
29,154,868 |
29,206,367 | |||||||||||
|
|
|
|
|||||||||
TOTAL |
42,814,105 |
40,169,875 |
||||||||||
|
|
|
|
|||||||||
ASSETS |
||||||||||||
Non-current assets |
||||||||||||
Goodwill |
9 |
383,005 |
459,982 | |||||||||
Property, plant and equipment |
10 |
24,678,070 |
24,378,417 | |||||||||
Intangible assets |
11 |
2,665,821 |
2,865,890 | |||||||||
Capital work-in-progress |
5,462,687 |
4,637,925 | ||||||||||
Long-term loans and advances |
12 |
925,521 |
1,125,061 | |||||||||
Other non-current assets |
13 |
44,313 |
20,626 | |||||||||
|
|
|
|
|||||||||
34,159,417 |
33,487,901 | |||||||||||
Current assets |
||||||||||||
Inventories |
14 |
325,572 |
269,296 | |||||||||
Trade receivables |
15 |
6,460,982 |
4,719,956 | |||||||||
Cash and bank balances |
16 |
369,984 |
171,867 | |||||||||
Short-term loans and advances |
17 |
768,489 |
1,008,242 | |||||||||
Other current assets |
18 |
729,660 |
512,613 | |||||||||
|
|
|
|
|||||||||
8,654,687 |
6,681,974 | |||||||||||
|
|
|
|
|||||||||
TOTAL |
42,814,105 |
40,169,875 |
||||||||||
|
|
|
|
|||||||||
Significant accounting policies |
1 |
Amount in USD |
||||||||||||
For the period | For the period | |||||||||||
Note |
01 April 2020-25 |
01 April 2019-31 | ||||||||||
March 2021 |
March 2020 | |||||||||||
Unaudited | Audited | |||||||||||
Revenue from operations |
19 |
8,013,504 |
9,057,344 | |||||||||
Other income |
20 |
3,009,732 |
2,136,145 | |||||||||
|
|
|
|
|||||||||
Total revenue |
11,023,236 |
11,193,489 | ||||||||||
|
|
|
|
|||||||||
Expenses |
||||||||||||
Purchase |
21 |
958,447 |
961,711 | |||||||||
Course operating expenses |
22 |
— |
— | |||||||||
Changes in inventories |
23 |
(56,187 |
) |
(38,620 | ) | |||||||
Employee benefits expense |
24 |
1,149,108 |
1,437,745 | |||||||||
Finance costs |
25 |
2,311,323 |
2,150,174 | |||||||||
Depreciation and amortisation |
26 |
1,402,718 |
1,404,801 | |||||||||
Other expenses |
27 |
3,003,651 |
2,870,913 | |||||||||
Extra Ordinary expenses |
28 |
— |
— | |||||||||
Total expenses |
8,769,061 |
8,786,724 | ||||||||||
|
|
|
|
|||||||||
Profit/(Loss) before tax |
2,254,175 |
2,406,765 | ||||||||||
|
|
|
|
|||||||||
Income tax expense |
||||||||||||
Current tax |
||||||||||||
Deferred tax |
||||||||||||
|
|
|
|
|||||||||
Profit/(Loss) after tax (before adjustment of |
2,254,175 |
2,406,765 | ||||||||||
|
|
|
|
|||||||||
minority interest) |
||||||||||||
Minority Interest |
63,618 |
22,802 | ||||||||||
Profit/(Loss) for the year |
2,190,558 |
2,383,963 | ||||||||||
|
|
|
|
|||||||||
Earnings/(loss) per equity share [nominal value of share INR 10 each (Previous year INR 10 each)] |
29 |
|||||||||||
Basic (not annualized) |
4.44 |
4.84 | ||||||||||
Diluted (not annualized) |
0.47 |
0.51 | ||||||||||
Significant accounting policies |
1 |
Amount in USD |
||||||||
25 March 2021 |
31 March 2020 | |||||||
Unaudited | Audited | |||||||
A. Cash flow from operating activities |
||||||||
Profit/(Loss) before tax |
2,254,175 |
2,406,765 | ||||||
Adjustments for: |
||||||||
Depreciation and amortisation |
1,402,718 |
1,404,801 | ||||||
Provisions/liabilities no longer required written back |
(3,009,179 |
) |
(2,109,763 | ) | ||||
Interest income |
— |
— | ||||||
Finance costs |
2,311,323 |
2,150,174 | ||||||
|
|
|
|
|||||
704,862 |
1,445,212 | |||||||
Operating cash flow before working capital changes |
2,959,038 |
3,851,978 | ||||||
Adjustments for: |
||||||||
(Increase) in trade and other receivables/advances |
(1,338,207 |
) |
(2,817,928 | ) | ||||
Decrease in inventories |
(57,612 |
) |
(9,632 | ) | ||||
Increase in trade payables, other liabilities and provisions |
(267,031 |
) |
332,248 | |||||
(1,662,849 |
) |
(2,495,313 | ) | |||||
Cash (used in) operations |
1,296,188 |
1,356,665 | ||||||
Income taxes refund (net) |
(31,282 |
) |
16,628 | |||||
|
|
|
|
|||||
Net cash (used in) operating activities (A) |
1,264,906 |
1,373,293 | ||||||
B. Cash flow from investing activities |
||||||||
Purchase or construction of property, plant and equipment and intangible assets and movement in capital work in progress |
(409,959 |
) |
(985,522 | ) | ||||
Proceeds from sale of property, plant & equipment |
(6,739 |
) |
— | |||||
Bank deposits (having original maturity of more than 3 months) |
— |
(8,958 | ) | |||||
Interest received |
0 |
(10,231 | ) | |||||
Net cash (used in) investing activities (B) |
(416,699 |
) |
(1,004,711 | ) | ||||
C. Cash flow from financing activities |
||||||||
Proceeds from borrowings (net) |
(107,150 |
) |
(537,770 | ) | ||||
Finance costs paid |
(529,105 |
) |
(311,595 | ) | ||||
Net cash provided by financing activities (C) |
(636,256 |
) |
(849,365 | ) | ||||
Net (decrease) in cash and cash equivalent (A+B+C) |
211,951 |
(480,782 | ) | |||||
Cash and cash equivalents at the beginning of the year |
111,902 |
592,684 | ||||||
Cash and cash equivalents at the end of the year (Refer Note (i) below) |
323,854 |
111,902 | ||||||
Notes: |
||||||||
(i) Components of cash and cash equivalent (refer note 16) |
||||||||
Cash on hand |
322,475 |
32,083 | ||||||
Balance with banks |
||||||||
On current accounts |
— |
71,853 | ||||||
On deposit accounts (with original maturity of 3 months or less) |
1,377 |
7,965 | ||||||
|
|
|
|
|||||
323,854 |
111,902 | |||||||
|
|
|
|
(ii) | The above cash flow statement has been prepared under the ‘Indirect Method’ as set out in the Accounting Standard 3 on Cash Flow Statement (AS 3 ) specified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014. |
1 |
Significant accounting policies |
(a) |
Basis of preparation of consolidated financial statements: |
(b) |
Principles of consolidation |
(c) |
Use of estimates |
(d) |
Current–non-current classification |
(e) |
Revenue recognition |
(f) |
Liabilities Written back |
(g) |
Property, plant and equipment(PPE) |
(h) |
Depreciation |
Building |
60 years | |||
Electrical Equipments |
10 years | |||
Medical & Surgical Equipment |
13 years | |||
Furniture & Fixtures |
10 years | |||
Vehicles |
10 years | |||
Office Equipment |
5 Years | |||
Computers and accessories |
3 Years |
(i) |
Intangible assets |
(j) |
Amortisation |
(k) |
Government grants |
(l) |
Impairment of property, plant & equipment and intangible assets |
(m) |
Inventories |
(n) |
Foreign currency transaction |
(o) |
Operating leases |
(p) |
Investments |
(q) |
Employee benefits |
(r) |
Taxation |
(s) |
Provisions and contingent liabilities |
(t) |
Earnings/(loss) per share |
(u) |
Discount on issue of debentures |
(v) |
Cash and cash equivalents |
(w) |
Cash flow statement |
(x) |
Going Concern |
2 |
Share capital |
Amount in USD |
||||||||||||||||
25 March 2021 |
31 March 2020 |
|||||||||||||||
Number of shares |
Amount |
Number of shares |
Amount |
|||||||||||||
Authorised |
||||||||||||||||
Equity shares of INR 10 each |
13,500,000 |
1,859,158 | 13,500,000 | 2,075,515 | ||||||||||||
Preference shares of INR 100 each |
5,000,000 |
6,885,772 | 5,000,000 | 7,687,092 | ||||||||||||
Preference shares of Re. 1 each |
3,200,000 |
44,069 | 3,200,000 | 49,197 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
21,700,000 |
8,788,999 |
21,700,000 |
9,811,805 |
|||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Issued, subscribed and paid up |
||||||||||||||||
Equity Shares |
||||||||||||||||
Equity shares of INR 10 each |
492,904 |
104,371 |
492,904 |
104,371 |
||||||||||||
Preferred Stock |
||||||||||||||||
0.001% Compulsorily Convertible Cumulative Preference Shares—Series A of INR 100 each |
240,777 |
508,086 |
240,777 |
508,086 |
||||||||||||
0.001% Compulsorily Convertible Cumulative Preference Shares—Series C of INR 100 each |
254,936 |
406,102 |
254,936 |
406,102 |
||||||||||||
0.001% Compulsorily Convertible Cumulative Preference Shares—Series C1 of INR 100 each |
157,234 |
243,565 |
157,234 |
243,565 |
||||||||||||
8% Compulsorily Convertible Cumulative Preference Shares of INR 100 each |
3,499,588 |
5,550,528 |
3,499,588 |
5,550,528 |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
4,645,439 |
6,812,652 |
4,645,439 |
6,812,652 |
||||||||||||
|
|
|
|
|
|
|
|
a) |
Reconciliation of the shares outstanding at the beginning and at the end of the period: |
Equity shares of INR10 each fully paid up |
| |||||||||||||||
At the commencement and at the end of the period |
492,904 |
104,371 |
492,904 |
104,371 |
||||||||||||
Shares issued during the period |
— |
— |
— |
— |
||||||||||||
At the end of the period |
492,904 |
104,371 |
492,904 |
104,371 |
||||||||||||
0.001% Compulsorily Convertible Cumulative Preference Shares—Series A |
| |||||||||||||||
At the commencement and at the end of the period |
240,777 |
508,086 |
240,777 |
508,086 |
||||||||||||
Shares converted into equity shares during the period |
— |
— |
— |
— |
||||||||||||
At the end of the period |
240,777 |
508,086 |
240,777 |
508,086 |
||||||||||||
0.001% Compulsorily Convertible Cumulative Preference Shares—Series C |
| |||||||||||||||
At the commencement and at the end of the period |
254,936 |
406,102 |
254,936 |
406,102 |
||||||||||||
Shares issued during the period |
— |
— |
— |
— |
||||||||||||
At the end of the period |
254,936 |
406,102 |
254,936 |
406,102 |
||||||||||||
0.001% Compulsorily Convertible Cumulative Preference Shares—Series C1 |
| |||||||||||||||
At the commencement and at the end of the period |
157,234 |
243,565 |
157,234 |
243,565 |
||||||||||||
Shares issued during the period |
— |
— |
— |
— |
||||||||||||
At the end of the period |
157,234 |
243,565 |
157,234 |
243,565 |
||||||||||||
8% Compulsorily Convertible Cumulative Preference Shares |
| |||||||||||||||
At the commencement of the period |
3,499,588 |
5,550,528 |
3,499,588 |
5,550,528 |
||||||||||||
Shares issued during the period |
— |
— |
— |
— |
||||||||||||
At the end of the period |
3,499,588 |
5,550,528 |
3,499,588 |
5,550,528 |
b) |
Shares held by holding company: |
c) |
Details of shareholders holding more than 5% are as follows |
Number of shares |
% of shares held |
Number of shares |
% of shares held |
|||||||||||||
Equity shares of INR 10 each fully paid up held by |
||||||||||||||||
Dr. Syed Sabahat Azim |
154,000 |
31.24 |
154,000 |
31.24 |
||||||||||||
Mrs. Richa Sana Azim |
1,54,000 |
31.24 |
1,54,000 |
31.24 |
||||||||||||
Mr. M. Damodaran |
52,855 |
10.72 |
52,855 |
10.72 |
||||||||||||
Elevar Equity Mauritius |
52,555 |
10.66 |
52,555 |
10.66 |
||||||||||||
0.001% Compulsorily Convertible Cumulative Preference Shares—Series A |
| |||||||||||||||
Elevar Equity Mauritius |
146,616 |
60.89 |
146,616 |
60.89 |
||||||||||||
Sequoia Capital India Investment Holdings III |
94,161 |
39.11 |
94,161 |
39.11 |
||||||||||||
0.001% Compulsorily Convertible Cumulative Preference Shares—Series C |
| |||||||||||||||
Elevar Equity Mauritius |
125,774 |
49.34 |
125,774 |
49.34 |
||||||||||||
Sequoia Capital India Investment Holdings III |
62,887 |
24.67 |
62,887 |
24.67 |
||||||||||||
Mr. M. Damodaran |
45,311 |
17.77 |
45,311 |
17.77 |
||||||||||||
Kimberlite Social Infra Private Limited |
20,964 |
8.22 |
20,964 |
8.22 |
||||||||||||
0.001% Compulsorily Convertible Cumulative Preference Shares—Series C1 |
| |||||||||||||||
Elevar Equity Mauritius |
157,234 |
100 |
157,234 |
100 |
||||||||||||
8% Compulsorily Convertible Cumulative Preference Shares SIDBI Trustee Company Limited A/C Samridhi Fund |
3,499,588 |
100 |
3,499,588 |
100 |
d) |
Rights, preferences and restrictions in respect of each class of shares including restrictions on the distribution of dividends and the repayment of capital: |
3 |
Reserves and surplus |
25 March 2021 |
31 March 2020 |
|||||||
Securities premium account |
8,320,698 | 8,320,698 | ||||||
Revaluation surplus |
10,128,170 | 10,128,170 | ||||||
General reserve |
331,361 | 331,361 | ||||||
Foreign Currency Translation reserve |
(2,266,144 | ) | (2,576,594 | ) | ||||
Surplus in Statement of Profit and Loss |
||||||||
At the commencement of the period (1st April) |
(15,489,802 | ) | (17,873,766 | ) | ||||
Add: Profit/(Loss) for the period |
2,190,556 | 2,383,964 | ||||||
|
|
|
|
|||||
Balance as at the end of the period |
(13,299,246 |
) |
(15,489,802 |
) | ||||
|
|
|
|
|||||
Total reserves and surplus |
3,214,839 |
713,832 |
4 |
Long-term borrowings |
Non-current portion |
Current portion* |
|||||||||||||||||||
Secured/ unsecured |
25 March 2021 |
31 March 2020 |
25 March 2021 |
31 March 2020 |
||||||||||||||||
204,540 (previous year: 204,540) 13.55% non-convertible debentures of INR 1,000 each |
Secured | — | — | — | 2,715,433 | |||||||||||||||
Less: Discount on issue of debenture to the extent not written off or adjusted |
— | — | — | — | ||||||||||||||||
— | — | — | 2,715,433 |
|||||||||||||||||
Term loans from Banks |
Secured | — | — | 13,095,050 | 12,630,603 | |||||||||||||||
Term loan from Small Industries Development Bank of India |
Secured | 464,423 | 561,155 | 123,944 | 107,534 | |||||||||||||||
Term loan from National Skill Development Corporation |
Secured | 721,986 | 695,997 | 1,448,496 | 1,396,354 | |||||||||||||||
Term loan from Caspian Impact Investments Private Limited |
Unsecured | — | — | 1,377,430 | 1,327,580 | |||||||||||||||
Term loan from Blacksoil capital Private Limited |
secured | 121,651 | — | 291,681 | 362,333 | |||||||||||||||
Equipment loan |
Secured | 303,564 | 321,760 | 242,911 | 237,157 | |||||||||||||||
1,611,624 |
1,578,912 |
16,579,512 |
18,776,995 |
* | Amount disclosed under Other current liabilities - Note 8 |
(a) ) |
Secured non-convertible debenture |
(i) | The Company had issued 13.55% redeemable non-convertible debenture of face value of INR 1,000 each aggregating to INR 204,540,000 (USD 2,715,433) at a discount of 0.95% on face value on 19 March 2016 to Essential Capital Consortium BV on private placement basis. These debentures are redeemable at par in two equal instalments of INR 102,270,000 (USD 1,478,574) each on 5 May 2019 and 5 November 2019 and in case put option is exercised by debenture holder, the total balance of INR 204,540,000 (USD 287,172) has to be repaid on any date not earlier than 11 February 2019. Interest is payable semiannually at the rate of 13.55% per annum (net of withholding tax) on interest payment dates or earlier in case upon the exercise of the put option (interest payment starting from 5 May 2016 and ending on 5 November 2019 and in case put option is exercised, starting from 5 May 2016 and ending on 11 February 2019 ) as per Mortgage Cum Debenture Trust Deed dated 4 February 2016. |
In view of contribution of company in the field of medicine especially during the COVID situation, USAID has decided to approve grant by paying off its debts towards Essential Capital Consortium (ECC). The grant has been approved and charged satisfaction has been filed on 13th June 2020. The company has written back the debenture of INR 204,540,000 (USD 2,799,716) and interest accrued and due on debenture of INR 13,712,945 (USD 187,701) under other income. |
(ii) | These debentures are secured by way of a second ranking and continuing charge by way of registered mortgage on the; |
(a) | immovable secured properties i.e rights in relation to; |
(i) | piece and parcel of garden land at Sonamukhi (District: Bankura) together with all buildings, constructions and plant and machinery erected thereon, both present and future. |
(ii) | piece and parcel of land at Bolpur (District: Birbhum) together with all buildings, constructions and plant and machinery erected thereon, both present and future. |
(iii) | piece and parcel of land at Behrampore (District: Murshidabad) together with all buildings, constructions and plant and machinery erected thereon, both present and future. |
(iv) | rooftop of one-storied building, ground floor stalls and rear vacant land at Dubrajpur (District: Birbhum) together with all buildings, constructions and plant and machinery erected thereon, both present and future |
(v) | office space together with all constructions and plant and machinery erected thereon at Ecospace, New Town Rajarhat (Kolkata) |
(b) | movable assets in relation to hospitals at Sonamukhi (District: Bankura), Dubrajpur (District: Birbhum), Behrampur (District: Bankura), Bolpur (District: Birbhum) and head office at Ecospace, New Town Rajarhat (Kolkata). |
(b) |
Term loans from Allahabad Bank |
(i) | Term loan from Allahabad Bank is secured by. |
(ii) | Interest on the above Term Loan-I, II & III carries an interest of 1 year MCLR plus 3.10% p.a. at monthly rests and is payable as and when due. And Term Loan IV and V carries an interest of 1 year MCLR plus 4.10% p.a. at monthly rests and is payable as and when due. |
(iii) | The Company has been disputing the EMIs being deducted by Allahabad bank since 2017 in respect to hospital projects that have not achieved COD especially as the disbursal also started late. The Bank and the Company are entering into a restructuring proposal to resolve this issue. The Techno Economic viability report with positive recommendation has been submitted by Dun & Bradstreet which was appointed by bank to examine and report on the viability and Independent Credit Rating has been given by the approved rating agency. It is expected that the restructuring process will be completed in 2021. During this time the loan has been classified by the Bank as technical npa pending closure of restructuring process. |
(c) |
Term loan from Small Industries Development Bank of India (SIDBI) |
(i) | Term loan from SIDBI is secured by : |
(ii) | The term loan have been sanctioned for INR 66,500,000 (USD 882,841) for setting up of hospital and purchase of medical instruments and surgical equipments at Beguasarai, Bihar and is repayable in 96 monthly instalments after a moratorium of 2 years from the date of first disbursement of loan. Tentative start date is 10 April 2017 and tentative last instalment date is 10 March 2025. |
(iii) | Above term loan carries an interest of SIDBI’s Prime Lending Rate (PLR) plus 1.50%, at monthly rests and is payable as and when applied. |
(d) |
Term loan from National Skill Development Corporation |
(i) | Term loan from National Skill Development Corporation is secured by: |
(ii) | The rate of interest being charged is simple interest of 6% p.a. payable on a quarterly basis after the interest-free moratorium period of two years from the date of first disbursement of the loan . |
(iii) | The principal and interest is overdue as on 30th December 2020. |
(e) |
Term loan from Caspian Impact Investments Pvt. Ltd. |
(i) | Term loan from Caspian Impact Investments Pvt. Ltd. is unsecured and other terms are: |
(f) |
Term loan from Blacksoil Capital Private Limited |
(g) |
Loan from Hero Fincorp |
(i) | Term loan amounting to Nil |
(ii) | The term loan has been sanctioned for INR 70,000,000 (USD 929,306) as working capital loan & INR 60,000,000 (USD 796,548) as term loan for capex requirements- production & expansion of digital dispensary business and takeover of existing term loan from SIDBI & IIFL respectively. |
(iii) | Above term loan carries an interest of Hero Fincorp Prime Lending Rate @ 13% p.a. at monthly rests. |
(h) |
Overdue payment of loan |
5 Provisions |
Amount in USD |
Long-term |
Short-term |
|||||||||||||||
25 March 2021 |
31 March 2020 |
25 March 2021 |
31 March 2020 |
|||||||||||||
Provision for employee benefits |
||||||||||||||||
Gratuity |
100,060 |
78,161 |
3,608 |
3,322 | ||||||||||||
Compensated absences |
67,479 |
51,524 |
2,716 |
2,471 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
167,539 |
129,685 |
6,324 |
5,793 |
|||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Other provisions |
||||||||||||||||
Provision for Income Tax |
— |
— |
1,928 |
1,859 | ||||||||||||
— |
— |
1,928 |
1,859 |
|||||||||||||
167,539 |
129,685 |
8,252 |
7,651 |
6 |
Short-term borrowings |
25 March 2021 |
31 March 2020 |
|||||||
Cash credit facilities from bank (secured) |
974,865 |
1,117,699 | ||||||
Unsecured loan |
||||||||
- loan from Hero Fincorp Ltd |
964,008 |
929,306 | ||||||
- loan from related party |
378,104 |
373,962 | ||||||
- loan from directors |
21,070 |
20,312 | ||||||
- loan from others |
1,515,451 |
1,451,329 | ||||||
|
|
|
|
|||||
3,853,498 |
3,892,608 |
|||||||
|
|
|
|
6.1 | Cash credit facilities from Allahabad Bank has been sanctioned with a limit of INR 50,000,000 (USD 663,790) for working capital requirement of the five existing operational hospitals of the Company with a margin of 25% and is secured by first and exclusive charge of hypothecation of all the current assets of the five units and administrative office of the Company (both present and future), further, secured by (along with bank guarantee) second charge on land and building, plant and machineries and other fixed assets of the five existing operational hospitals under the Company’s direct ownership (both present and future). The cash credit facilities carry an interest rate of one-year MCLR plus 3.10% p.a. computed on a monthly basis on the actual amount utilized and are repayable as and when due. |
6.2 | Interest free loan taken from directors and related parties are repayable on demand. |
6.3 | a. Loan taken from others is repayable on demand. |
6.4 |
Loan from Hero Fincorp |
(i) | Term loan is secured by: |
(ii) | The term loan has been sanctioned for INR 70,000,000 (USD 929,306) as working capital loan & INR 60,000,000 (USD 862,678) as term loan for capex requirements- production & expansion of digital dispensary business and takeover of existing term loan from SIDBI & IIFL respectively. The term loan facility for takeover of loan from SIDBI & IIFL has not been availed and hence got expired. So the charge created against immovable property is still lying with SIDBI. |
(iii) | Above term loan carries an interest of Hero Fincorp Prime Lending Rate @ 13% p.a. at monthly rests |
(iv) | As per circular DOR.No.BP.BC.47/21.04.048/2019-20 dated March 27, 2020 regulatory measures were announced by RBI to mitigate the burden of debt servicing brought about by disruptions on account of COVID-19 pandemic by granting a moratorium of three months on payment of all instalments falling due between March 1, 2020 and May 31, 2020. Further, this relief was extended till August 31, 2020 and this pacakage has been taken up the company and installments has been rescheduled accordingly. |
7 |
Trade payables |
25 March 2021 |
31 March 2020 |
|||||||
Total outstanding dues of micro enterprises and small enterprises |
— |
— | ||||||
Total outstanding dues of creditors other than micro enterprises and small enterprises |
578,719 |
1,471,145 | ||||||
|
|
|
|
|||||
578,719 |
1,471,145 |
|||||||
|
|
|
|
8 |
Other current liabilities |
25 March 2021 |
31 March 2020 |
|||||||
Current maturities of long-term debts (refer note 4) |
16,579,512 |
18,776,995 | ||||||
Interest accrued and due on term loans |
4,713,386 |
2,275,228 | ||||||
Interest accrued but not due on loan |
— |
|||||||
Interest accrued and due on cash credit |
258,722 |
145,101 | ||||||
Interest accrued and due on equipment loan |
47,112 |
32,465 | ||||||
Interest accrued but not due on equipment loan |
131,217 |
|||||||
Interest accrued and due on other loan |
181,638 |
118,523 | ||||||
Interest accrued but not due on debentures |
— |
— | ||||||
Interest accrued and due on debentures |
— |
182,050 | ||||||
Creditors for capital goods |
234,384 |
178,446 | ||||||
Employee benefits payable |
628,395 |
539,903 | ||||||
Temporary Book Overdraft |
1,073 |
|||||||
Advance from TPA & Customers |
443,408 |
431,960 | ||||||
Partner’s Current A/c |
17,903 |
17,259 | ||||||
Statutory dues payable |
||||||||
Provident fund |
317,412 |
274,585 | ||||||
Professional tax |
14,034 |
12,484 | ||||||
Employee state insurance payable |
193,258 |
166,695 | ||||||
Tax deducted at source payable |
442,830 |
327,555 | ||||||
Goods and services tax payable |
40,539 |
88,504 | ||||||
Unearned revenue |
136,332 |
131,424 | ||||||
Advance from patients and others |
241,012 |
7,220 | ||||||
Other liabilities/ payables |
92,232 |
128,565 | ||||||
|
|
|
|
|||||
24,714,399 |
23,834,963 |
|||||||
|
|
|
|
8.1 |
i. Major clients of the company are ESIC, PSU’s and various other government departments. There has been major delay in receipt of payment from their side which is creating challenges for the company to meet its operational expenses which includes statutory obligations also. |
8.2 |
Advance receipt of INR 30 mm from S.S Earth Moving Mining was for setup of dispensary setup in their mining area. But no space was allocated to us by them, hence setup is not done. |
8.3 |
Advance include amount received from African medical supply for supply of DD setup but due to COVID outbreakup same couldnot be fulfilled. |
8.4 |
Regarding interest accrued and due with respect to the term loan taken from Allahabad bank, the company has been disputing the EMIs being deducted by the bank since 2017 in respect to hospital projects, that have not achieved COD especially as the disbursal also started late. The Bank and the company are entering into a restructuring proposal to resolve this issue. The Techno Economic viability report with positive recommendation has been submitted by Dun & Bradstreet which was appointed by bank to examine and report on the viability and Independent Credit Rating has been given by the approved rating agency. It is expected that the restructuring process will be completed in 2021. During this time the loan has been classified by the Bank as technical NPA pending closure of restructuring process. As the account has been declared technical NPA by the bank so no interest has been charged by the bank but following the concept of mercantile system of accounting interest on term loan from Allahabad Bank and interest on cash credit |
limit has been calculated and charged in expenses. This interest has been classified as Interest accured and due under other current liabilities. |
9 |
Goodwill |
25 March 2021 |
31 March 2020 |
|||||||
Opening balance |
459,982 |
598,136 | ||||||
Amortisation of Goodwill |
(93,867 |
) |
(95,982 | ) | ||||
Forex Adjustment |
16,890 |
(42,172 | ) | |||||
Closing balance |
383,005 |
459,982 |
10 |
Property, Plant & Equipment |
Particulars |
WDV as on 25.03.2021 |
WDV as on 31.03.2020 |
||||||
Freehold land |
5,426,965 | 5,231,609 | ||||||
Leasehold land |
22,636 | 22,837 | ||||||
Buildings |
16,212,476 | 15,892,417 | ||||||
Electrical equipment |
393,532 | 450,247 | ||||||
Medical & surgical equipment’s |
2,302,417 | 2,408,992 | ||||||
Furniture and fixtures |
236,768 | 273,870 | ||||||
Vehicles |
3,091 | 3,828 | ||||||
Office equipment |
63,692 | 67,280 | ||||||
Computers and accessories |
16,494 | 27,336 | ||||||
|
|
|
|
|||||
Total |
24,678,070 |
24,378,417 |
||||||
|
|
|
|
11 |
Intangible Assets |
Particulars |
WDV as on 25.03.2021 |
WDV as on 31.03.2020 |
||||||
Computer software (internally generated platform/applications) |
2,581,839 | 2,541,433 | ||||||
Computer software |
57,752 | 166,246 | ||||||
Trademark |
— | 74 | ||||||
Content development |
26,230 | 158,137 | ||||||
|
|
|
|
|||||
Total |
2,665,821 |
2,865,890 |
||||||
|
|
|
|
12 |
Long-term loans and advances |
25 March 2021 |
31 March 2020 |
|||||||
(Unsecured and considered good) |
||||||||
To parties other than related parties | ||||||||
(a) ) Capital advances |
411,027 |
544,996 | ||||||
(b) Security deposits |
53,574 |
166,558 | ||||||
464,602 |
711,553 |
|||||||
(c) ) Other loans and advances | ||||||||
TDS receivables |
460,919 |
413,507 | ||||||
|
|
|
|
|||||
460,919 |
413,507 |
|||||||
925,521 |
1,125,061 |
13 |
Other non-current assets |
25 March 2021 |
31 March 2020 |
|||||||
(Unsecured and considered good) |
||||||||
Bank deposits (due to mature after 12 months from the reporting date) [refer note 16]* |
42,968 |
19,289 | ||||||
Balance with government authorities |
686 |
661 | ||||||
Interest accrued on bank deposits |
— |
41 | ||||||
Interest accrued on electricity deposits |
659 |
636 | ||||||
|
|
|
|
|||||
44,313 |
20,626 |
14 |
Inventories |
(Valued at lower of cost and net realisable value) |
||||||||
Stock of digital dispensary, medicine and medical consumables |
322,309 |
265,330 | ||||||
Stores and spares |
3,263 |
3,966 | ||||||
|
|
|
|
|||||
325,572 |
269,296 |
|||||||
|
|
|
|
15 |
Trade receivables |
(a) Unsecured and considered good |
6,460,982 |
1,520,746 | ||||||
(b) Doubtful |
451,181 |
434,940 | ||||||
Less: Provision for doubtful receivables |
(451,181 |
) |
(434,940 | ) | ||||
|
|
|
|
|||||
6,460,982 |
1,520,746 |
|||||||
Other receivables | ||||||||
(a) Unsecured, considered good |
— |
3,199,210 |
||||||
— |
||||||||
6,460,982 |
4,719,956 |
16 |
Cash and bank balances |
25 March 2021 |
31 March 2020 |
|||||||
Cash and cash equivalents |
||||||||
Cash on hand |
322,476 |
32,084 | ||||||
Balance with banks: |
— |
|||||||
On current accounts |
— |
71,853 | ||||||
On deposit accounts (with original maturity of 3 months or less) |
1,377 |
7,965 | ||||||
323,854 |
111,902 |
|||||||
Other bank balances: |
||||||||
Deposits in banks with maturity of more than 3 months but less than 12 months* |
46,131 |
59,965 | ||||||
369,984 |
171,867 |
* | Bank deposits of USD 13,772 as on 25 March 2021 (31 March 2020—USD 13,276) have been pledged with Black Soil as security for term loan |
* | Bank deposits of USD 31,557 as on 25 March 2021 (31 March 2020- USD 30,421) have been given as cash margin to banks for issuing bank guarantees to government authorities. |
17 |
Short-term loans and advances |
25 March 2021 |
31 March 2020 |
|||||||
(Unsecured and considered good) |
||||||||
To parties other than related parties |
||||||||
Security deposits |
157,975 |
37,376 | ||||||
Prepaid expenses |
409 |
2,652 | ||||||
Advance for supply of goods and services |
25,152 |
493,214 | ||||||
Advance to doctors |
— |
26,339 | ||||||
Advances to employees |
537,319 |
396,399 | ||||||
Advances to others |
47,634 |
52,262 | ||||||
|
|
|
|
|||||
768,489 |
1,008,242 |
|||||||
|
|
|
|
18 |
Other current assets |
25 March 2021 |
31 March 2020 |
|||||||
(Unsecured and considered good) |
||||||||
Interest accrued on bank deposits |
16,910 |
16,261 | ||||||
Government grant receivable |
708,823 |
492,567 | ||||||
Unbilled revenue |
3,927 |
3,786 | ||||||
|
|
|
|
|||||
729,660 |
512,613 | |||||||
|
|
|
|
19 |
Revenue from operations |
Amount in USD |
||||||||||
01 April 2020-25 March 2021 |
01 April 2019-31 March 2020 |
|||||||||
Sale of services: |
||||||||||
Income from hospital services | 5,486,607 |
4,534,912 | ||||||||
Income from digital dispensary consultancy | 1,375,651 |
1,226,063 | ||||||||
Sale of goods: |
||||||||||
Sale of pharmacy/ medicines | 787,575 |
746,317 | ||||||||
Sale of digital dispensary |
2,191,804 | |||||||||
Other operating revenue: |
||||||||||
Income from government grant* | 270,680 |
256,771 | ||||||||
Miscellaneous income | 92,991 |
101,477 | ||||||||
|
|
|
|
|||||||
8,013,504 |
9,057,344 |
|||||||||
|
|
|
|
19.1 | The company has entered into revenue sharing arrangement, the contractual arrangement is on principal-to-principal basis for hospital at Bolpur, Sonamukhi, Malda, Jeypore & Mednipore. These hospitals were earlier operated by Company itself. |
19.2 | Income from government grant represents interest and tax subsidy from government of Bihar under Bihar Industrial Investment Promotion Act, 2016. Interest subsidy is available to GHSPL Muzafarpur Healthcare LLP, GHSPL Bhaglpur Healtcare LLP & GHSPL Begusari Healthcare LLP on the term loan availed by the LLP from Allahabad Bank & State Industrial Development Bank of India. |
20 |
Other Income |
01 April 2020-25 March 2021 |
01 April 2019-31 March 2020 |
|||||||
Interest on bank deposits |
6,994 | |||||||
Interest on income tax refund |
— |
18,521 | ||||||
Provision/ liability no longer required written back (Net) |
3,009,179 |
2,109,763 | ||||||
Miscellaneous income |
553 |
868 | ||||||
|
|
|
|
|||||
3,009,732 |
2,136,145 |
|||||||
|
|
|
|
20.1 | On March 19, 2016 company has issued 13.55% Non-convertible Debentures worth INR 204,540,000 (USD 2,715,433) to Essential Consortium Capital but in view of the contribution of company in the field of medicine, especially during the COVID situation, USAID has decided to approve grants by paying off its debts towards Essential Capital Consortium (ECC). Hence, provision /liability no longer required includes writte off Debentures, Interest thereon and liability towards ECC worth INR 223,673,406 (USD 3,014,824) as on December 31, 2020 |
21 |
Purchases |
01 April 2020-25 March 2021 |
01 April 2019-31 March 2020 |
|||||||
Medicines and medical consumables |
936,094 |
898,589 | ||||||
Purchase of digital dispensary |
22,353 |
63,122 | ||||||
958,447 |
961,711 |
22 |
Course operating expenses |
Amount in USD |
||||||||
01 April 2020-25 March 2021 |
01 April 2019-31 March 2020 |
|||||||
Training cost/ professional fees | — |
— | ||||||
Fooding and lodging | — |
— | ||||||
Externship expenses | — |
— | ||||||
|
|
|
|
|||||
— |
— |
|||||||
|
|
|
|
23 |
Changes in inventories |
Inventory at the beginning of the year |
269,385 |
237,285 | ||||||
Inventory at the end of the year |
325,572 |
275,905 | ||||||
|
|
|
|
|||||
(56,187 |
) |
(38,620 |
) | |||||
|
|
|
|
24 |
Employee benefits expense |
Salaries, wages, and bonus |
1,023,923 |
1,291,639 | ||||||
Contribution to provident and other funds |
107,513 |
110,974 | ||||||
Staff welfare expenses |
17,672 |
35,132 | ||||||
|
|
|
|
|||||
1,149,108 |
1,437,745 |
|||||||
|
|
|
|
25 |
Finance costs |
Interest expense on: |
||||||||
- debenture |
— |
38,743 | ||||||
- term loan |
2,294,906 |
1,574,394 | ||||||
- Cash credit |
111,076 |
144,621 | ||||||
Unsecured loan |
576,098 |
624,970 | ||||||
Other borrowing costs |
80 |
|||||||
|
|
|
|
|||||
2,982,160 |
2,382,728 |
|||||||
Less: Borrowing costs capitalized to qualifying assets |
(670,837 |
) |
(232,554 | ) | ||||
|
|
|
|
|||||
2,311,323 |
2,150,174 |
|||||||
|
|
|
|
25.1 | Interest expenses as been calculated as per contractual term mentioned in sanction letter of Banks/ Financial Institutions. The company is in discussion with Allahabad Bank for restructuring and other financial institutions for rescheduling of the repayment terms. The management beliefs that no penal interest will be charged by the banks & financial institution and hence no provision has been recognized in the statement of profit & loss. |
26 |
Depreciation and amortization |
Depreciation of property, plant and equipment (PPE) |
671,000 | 752,899 | ||||||
Amortization of Goodwill |
92,559 | 95,982 | ||||||
Amortization of intangible assets |
639,159 | 555,920 | ||||||
|
|
|
|
|||||
1,402,718 |
1,404,801 |
|||||||
|
|
|
|
27 |
Other expenses |
Amount in USD |
||||||||
01 April 2020-25 March 2021 |
01 April 2019-31 March 2020 |
|||||||
Consumption of stores and spares |
13,115 |
6,445 | ||||||
Share of O&M Partner |
430,138 |
|||||||
Housekeeping expenses |
85,730 |
95,406 | ||||||
Assets/Receivable written off |
7,015 | |||||||
Power and fuel |
124,768 |
176,237 | ||||||
Rates and taxes |
18,029 |
30,818 | ||||||
Rent (refer note 36) |
— |
|||||||
- equipment’s |
4,542 |
3,918 | ||||||
- others |
71,720 |
94,755 | ||||||
Patient food expenses |
57,918 |
68,707 | ||||||
Professional fees: |
— |
|||||||
- to doctors |
1,594,604 |
1,579,504 | ||||||
- to others |
18,629 |
13,482 | ||||||
Repairs to building |
61,905 |
72,581 | ||||||
Repairs to surgical/medical equipment’s/machinery |
37,632 |
47,845 | ||||||
Repairs to others |
6,590 |
8,222 | ||||||
Payment to auditors |
25,337 |
26,329 | ||||||
Travelling and conveyance expenses |
126,097 |
168,930 | ||||||
Advertisement and sales promotion |
140,919 |
231,583 | ||||||
Testing expenses |
95,343 |
60,538 | ||||||
Printing and stationery |
25,505 |
30,137 | ||||||
Telephone and communication expenses |
30,612 |
60,786 | ||||||
Miscellaneous expenses |
126,379 |
87,675 | ||||||
Less: Capitalisation for internally generated software |
(91,860 |
) |
||||||
|
|
|
|
|||||
3,003,651 |
2,870,913 |
|||||||
|
|
|
|
28 |
Extra-ordinary expenses |
Equity Transaction Related expenses |
— | |||||||
Statutory Dues Expenses |
— |
29 |
Earnings/ (loss) per share |
Amount in USD |
||||||||
Particular’s |
25 March 2021 |
31 March 2020 |
||||||
Profit/(Loss) attributable to equity shareholders (a) | 2,190,558 | 2,383,964 | ||||||
Less: Dividend on cumulative compulsorily convertible preference shares and tax thereon (b) | 2,049,910 | 1,976,118 | ||||||
Net profit/(loss) adjusted for the effects of dilutive potential equity shares for calculation of diluted EPS [(c) = (a)—(b)] | 140,648 | 407,846 | ||||||
Weighted average number of equity shares of face value of INR 10 each outstanding during the year (used for calculating Basic EPS) (d) | 492,904 | 492,904 | ||||||
Add: Effect of potential equity shares to be issued under Compulsory Convertible Preference Shares (e)* | 4,152,535 | 4,152,535 | ||||||
Weighted average number of equity shares of face value of INR 10 each outstanding during the year (used for calculating Diluted EPS) [(f) = (d) + (e)] | 4,645,439 | 4,645,439 | ||||||
Basic earnings per share of INR 10 each [(g)= (a)/(d)] (not annualized) | 4.44 |
4.84 |
||||||
Diluted earnings per share of INR 10 each [(h) = (c)/(f)] (not annualized)** | 0.47 |
0.51 |
30 |
Minority interest |
Amount in USD |
||||||||||||||||
Name of the LLPs |
Minority% 25 March 2021 |
Minority% 31 March 2020 |
25 March 2021 |
31 March 2020 |
||||||||||||
GHSPL BEGUSARAI Healthcare LLP |
5 | % | 5 | % | 51,503 | 30,168 | ||||||||||
GHSPL BGLP Super Speciality Healthcare LLP |
35 | % | 35 | % | 333,922 | 344,304 | ||||||||||
GHSPL FATEHPUR Super Speciality Healthcare LLP |
35 | % | 35 | % | 37,148 | 37,148 | ||||||||||
GHSPL JEYPORE Healthcare LLP |
35 | % | 35 | % | 284,806 | 396,836 | ||||||||||
GHSPL SAMBHAV KNJ Healthcare LLP |
35 | % | 35 | % | 154,908 | 75,317 | ||||||||||
GHSPL MLD Super Speciality Healthcare LLP |
22 | % | 22 | % | 164,918 | 90,740 | ||||||||||
GHSPL MUZF Super Speciality Healthcare LLP |
38 | % | 38 | % | 521,942 | 453,144 | ||||||||||
GHSPL MDPR Super Speciality Healthcare LLP |
2 | % | 2 | % | 61,420 | 58,753 | ||||||||||
GHSPL PRN Super Speciality Healthcare LLP |
24 | % | 24 | % | 190,007 | 190,007 | ||||||||||
GHSPL BHNGAR Super Speciality Healthcare LLP |
11 | % | 11 | % | 52,008 | 52,008 | ||||||||||
1,852,582 |
1,728,427 |
31 |
On October 22, 2020, the Company has entered into a business combination agreement with Uphealth Holdings, Inc. The transaction is agreed at a purchase consideration of $171 million. Post the consummation of transaction, Uphealth Holdings, Inc.. will hold 100% shares in the Company. |
32. | This note presents the reconciliation of (i) the unaudited interim consolidated balance sheets & audited consolidated balance sheets, unaudited interim consolidated statement of profit and loss & audited consolidated statement of profit and loss and unaudited interim consolidated statement of cash flows & audited consolidated statement of cash flow of Glocal Healthcare Systems Private Limited (“Glocal” or the “Company”) as derived from the unaudited interim consolidated financial statements of the Company for the period from 01 April 2020 to 25 March 2021 and from the audited consolidated financial statement of the company from 01 April 2019 to 31 March 2020 prepared in accordance with the accounting principles generally accepted in India (“Indian GAAP”),incorporated above in this document, to (ii) the unaudited interim consolidated balance sheets & audited consolidated balance sheet , unaudited interim consolidated statements of operations and unaudited statement of comprehensive income and loss & audited consolidated |
statement of operations and audited statement of comprehensive income and unaudited consolidated statement of cash flows of the Company & audited consolidated cash flows of the Company prepared in accordance with the accounting principles generally accepted in the United States of America (“U.S. GAAP”) and in accordance with the U.S. GAAP accounting policies as set out below. |
32.1 |
Accounting Policies |
(a) |
Revenue Recognition |
(b) |
Liabilities written back |
(c) |
Research and Development Expenses |
(d) |
Employee Benefit |
(e) |
Preference Shares |
(f) |
Business Combination |
(g) |
Income Taxes |
(h) |
Foreign Currency Translation |
(i) |
Comprehensive Income (Loss) |
(j) |
Cash and Cash Equivalents |
(k) |
Accounts Receivable and Allowance for Doubtful |
(l) |
Property and Equipment, net |
(m) |
Impairment or disposal of long-lived assets |
(n) |
Fair Value of Financial Instruments |
• | Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. |
• | Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. |
• | Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. |
Particulars |
25 March 2021 Indian GAAP |
Revaluation Reserve |
Deferred Tax |
Goodwill |
Classification of Mezzanine Equity |
Others* |
25 March 2021 US GAAP |
|||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||
Current Assets |
||||||||||||||||||||||||||||
Cash and cash equivalents |
369,984 | — | — | — | — | (45,328 | ) | 324,656 | ||||||||||||||||||||
Restricted cash |
— | — | — | — | — | 45,328 | 45,328 | |||||||||||||||||||||
Accounts Receivables, net of allowance |
6,460,982 | — | — | — | — | — | 6,460,982 | |||||||||||||||||||||
Inventories |
3,25,572 | — | — | — | — | — | 325,572 | |||||||||||||||||||||
Other current assets |
1,498,149 | — | — | — | — | 22,636 | 1,520,784 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
8,654,687 | — | — | — | — | 22,636 | 8,677,323 | ||||||||||||||||||||||
Property, Plant & Equipment (Net) |
24,678,070 | (12,159,329 | ) | — | — | (22,636 | ) | 12,496,106 | ||||||||||||||||||||
Goodwill |
383,005 | — | — | (383,005 | ) | — | — | — | ||||||||||||||||||||
Other Intangible Assets (Net) |
2,665,821 | — | — | — | — | — | 2,665,821 | |||||||||||||||||||||
Capital work in progress |
5,462,687 | — | — | — | — | — | 5,462,687 | |||||||||||||||||||||
Restricted cash |
— | — | — | — | — | — | — | |||||||||||||||||||||
Deferred Tax Assets |
— | — | 3,755,307 | — | — | — | 3,755,307 | |||||||||||||||||||||
Other assets |
969,834 | — | — | — | — | — | 969,834 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
34,159,417 | (12,159,329 | ) | 3,755,307 | (383,005 | ) | — | (22,636 | ) | 25,349,755 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Assets |
42,814,104 |
(12,159,329 |
) |
3,755,307 |
(383,005 |
) |
— |
— |
34,027,078 |
|||||||||||||||||||
Liabilities and Stockholders Equity |
||||||||||||||||||||||||||||
Current Liabilities |
||||||||||||||||||||||||||||
Accounts payables |
578,719 | — | — | — | — | — | 578,719 | |||||||||||||||||||||
Accrued Liabilities |
8,134,887 | — | — | — | — | 129,468 | 8,264,355 | |||||||||||||||||||||
Short-term borrowings |
3,853,498 | — | — | — | — | — | 3,853,498 | |||||||||||||||||||||
Current portion of long-term borrowings |
16,579,512 | — | — | — | — | — | 16,579,512 | |||||||||||||||||||||
Short-term provisions |
8,252 | — | — | — | — | — | 8,252 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
29,154,868 | — | — | — | — | 129,468 | 29,284,336 | ||||||||||||||||||||||
Long-term borrowings |
1,611,624 | — | — | — | — | — | 1,611,624 | |||||||||||||||||||||
Long-term provisions |
167,539 | — | — | — | — | — | 167,539 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total liabilities |
30,934,031 | — | — | — | — | 1,29,468 | 31,063,499 | |||||||||||||||||||||
Mezzanine Equity |
||||||||||||||||||||||||||||
Series A preferred shares |
— | — | — | — | 2,463,470 | — | 2,463,470 | |||||||||||||||||||||
Stockholders Equity |
||||||||||||||||||||||||||||
Common Stock |
104,371 | — | — | — | — | — | 104,371 | |||||||||||||||||||||
Money received against share warrant |
— | — | — | — | — | — | — | |||||||||||||||||||||
Preferred Stock |
6,708,281 | — | — | — | (508,086 | ) | — | 6,200,194 | ||||||||||||||||||||
Additional paid-in-capital |
8,320,698 | — | — | (98,306 | ) | (1,955,383 | ) | — | 6,267,009 | |||||||||||||||||||
Revaluation Surplus |
10,128,170 | (10,128,170 | ) | — | — | — | — | — | ||||||||||||||||||||
Retained Earnings |
(12,967,885 | ) | — | 3,580,711 | (301,589 | ) | — | (132,299 | ) | (9,821,062 | ) | |||||||||||||||||
Foreign Currency Translation Reserve |
(2,266,144 | ) | — | — | 16,890 | — | 2,831 | (2,246,423 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total shareholders’ equity attributable to the Group |
10,027,490 | (10,128,170 | ) | 3,580,711 | (383,005 | ) | (0 | ) | (129,468 | ) | 2,967,558 | |||||||||||||||||
Non-Controlling Interest |
1,852,582 | (2,031,159 | ) | 174,596 | — | — | — | (3,981 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Stockholders’ Equity |
11,880,073 | (12,159,329 | ) | 3,755,307 | (383,005 | ) | (0 | ) | (129,468 | ) | 2,963,578 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total liabilities and stockholders’ equity |
42,814,104 |
(12,159,329 |
) |
3,755,307 |
(383,005 |
) |
(0 |
) |
— |
34,027,078 |
* | Others include Lease classification and interest expense. |
Particulars |
25 March 2021 Indian GAAP |
Deferred Tax |
Goodwill |
Others |
25 March 2021 US GAAP |
|||||||||||||||
Revenue |
8,013,504 | — | — | — | 8,013,504 | |||||||||||||||
Cost of revenues |
3,290,932 | — | — | — | 3,290,932 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Gross Profit |
4,722,572 | — | — | — | 4,722,572 | |||||||||||||||
Operating expenses |
||||||||||||||||||||
Selling & Distribution expense |
140,919 | — | — | — | 140,919 | |||||||||||||||
General & Administrative expense |
474,060 | — | — | — | 474,060 | |||||||||||||||
Employee benefits expense |
1,149,108 | — | — | — | 1,149,108 | |||||||||||||||
Depreciation and amortisation |
1,402,718 | — | (92,559 | ) | — | 1,310,159 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Operating Expenses |
3,166,805 | — | (92,559 | ) | — | 3,074,246 | ||||||||||||||
Operating Income |
1,555,767 |
— |
92,559 |
— |
1,648,325 |
|||||||||||||||
Other income |
3,009,732 | — | — | — | 3,009,732 | |||||||||||||||
Interest expense |
2,311,323 | — | 39,968 | 2,351,291 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income before income tax |
2,254,175 |
— | 92,559 | (39,968 | ) | 2,306,766 | ||||||||||||||
Income tax expense |
— | (695,686 | ) | — | — | (695,686 | ) | |||||||||||||
— | ||||||||||||||||||||
Net Income |
2,254,175 |
695,686 |
92,559 |
(39,968 |
) |
3,002,452 |
||||||||||||||
Net income attributable to non controlling interest |
63,618 | 37,778 | — | — | 101,395 | |||||||||||||||
Net income available to the owners of the parent |
2,190,558 |
657,908 |
92,559 |
(39,968 |
) |
2,901,057 |
||||||||||||||
Net Income |
2,190,558 | 657,908 | 92,559 | (39,968 | ) | 2,901,057 | ||||||||||||||
Other Comprehensive Income/(loss), net of tax |
||||||||||||||||||||
Translation adjustments |
(310,450 |
) |
2,831 | (307,619 | ) | |||||||||||||||
Total other comprehensive income/(loss) |
(310,450 |
) |
— |
— |
2,831 |
(307,619 |
) | |||||||||||||
Comprehensive Income |
1,880,107 | 657,908 |
92,559 |
(37,137 |
) |
2,593,437 |
||||||||||||||
Comprehensive Income (loss) attributable to the non-controlling interest |
— | — | — | — | — | |||||||||||||||
Comprehensive Income attributable to the owners of the parent |
1,880,107 |
657,908 |
92,559 |
(37,137 |
) |
2,593,437 |
Particulars |
25 March 2021 Indian GAAP |
Others |
25 March 2021 US GAAP |
|||||||||
Net cash (used in) operating activities (A) |
1,264,906 | — | 1,264,906 | |||||||||
Net cash (used in) investing activities (B) |
(416,699 | ) | — | (416,699 | ) | |||||||
Net cash provided by financing activities (C) |
(636,256 | ) | — | (636,256 | ) | |||||||
Net (decrease) in cash and cash equivalent (A+B+C) |
211,951 |
— |
211,951 |
|||||||||
Cash and cash equivalents at the beginning of the year |
111,902 | — | 111,902 | |||||||||
Cash and cash equivalents at the end of the year |
323,854 |
— |
323,854 |
Particulars |
31 March 2020 Indian GAAP |
Revaluation Reserve |
Deferred Tax |
Goodwill |
Classification of Mezzanine Equity |
Others* |
31 March 2020 US GAAP |
|||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||
Current Assets |
||||||||||||||||||||||||||||
Cash and cash equivalents |
171,867 | — | — | — | — | (43,697 | ) | 128,170 | ||||||||||||||||||||
Restricted cash |
— | — | — | — | — | 43,697 | 43,697 | |||||||||||||||||||||
Accounts Receivables, net of allowance |
4,719,956 | — | — | — | — | — | 4,719,956 | |||||||||||||||||||||
Inventories |
269,296 | — | — | — | — | — | 269,296 | |||||||||||||||||||||
Other current assets |
1,520,855 | — | — | — | — | 22,837 | 1,543,692 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
6,681,974 | — | — | — | — | 22,837 | 6,704,810 | ||||||||||||||||||||||
Property, Plant & Equipment (Net) |
24,378,417 | (12,159,329 | ) | — | — | (22,837 | ) | 12,196,252 | ||||||||||||||||||||
Goodwill |
459,982 | — | — | (459,982 | ) | — | — | — | ||||||||||||||||||||
Other Intangible Assets (Net) |
2,865,890 | — | — | — | — | — | 2,865,890 | |||||||||||||||||||||
Capital work in progress |
4,637,925 | — | — | — | — | — | 4,637,925 | |||||||||||||||||||||
Restricted cash |
— | — | — | — | — | — | — | |||||||||||||||||||||
Deferred Tax Assets |
— | — | 3,036,053 | — | — | — | 3,036,053 | |||||||||||||||||||||
Other assets |
1,145,687 | — | — | — | — | — | 1,145,687 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
33,487,901 | -12,159,329 | 3,036,053 | -459,982 | — | -22,837 | 23,881,806 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Assets |
40,169,875 |
-12,159,329 |
3,036,053 |
-459,982 |
— |
— |
30,586,617 |
|||||||||||||||||||||
Liabilities and Stockholders Equity |
|
|||||||||||||||||||||||||||
Current Liabilities |
||||||||||||||||||||||||||||
Accounts payables |
1,471,145 | — | — | — | — | — | 1,471,145 | |||||||||||||||||||||
Accrued Liabilities |
5,057,967 | — | — | — | — | 85,742 | 5,143,709 | |||||||||||||||||||||
Short-term borrowings |
3,892,608 | — | — | — | — | — | 3,892,608 | |||||||||||||||||||||
Current portion of long-term borrowings |
18,776,995 | — | — | — | — | — | 18,776,995 | |||||||||||||||||||||
Short-term provisions |
7,651 | — | — | — | — | — | 7,651 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
29,206,367 | — | — | — | — | 85,742 | 29,292,109 | ||||||||||||||||||||||
Long-term borrowings |
1,578,912 | — | — | — | — | — | 1,578,912 | |||||||||||||||||||||
Long-term provisions |
129,685 | — | — | — | — | — | 129,685 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total liabilities |
30,914,964 | — | — | — | — | 85,742 | 31,000,706 | |||||||||||||||||||||
Mezzanine Equity |
||||||||||||||||||||||||||||
Series A preferred shares |
— | — | — | — | 2,463,470 | — | 2,463,470 | |||||||||||||||||||||
Stockholders Equity |
||||||||||||||||||||||||||||
Common Stock |
104,371 | — | — | — | — | — | 104,371 | |||||||||||||||||||||
Preferred Stock |
6,708,281 | — | — | — | -508,086 | — | 6,200,194 | |||||||||||||||||||||
Additional paid-in-capital |
8,320,698 | — | — | (105,118 | ) | (1,955,383 | ) | — | 6,260,197 | |||||||||||||||||||
Revaluation Surplus |
10,128,170 | -10,128,170 | — | — | — | — | — | |||||||||||||||||||||
Retained Earnings |
(15,158,441 | ) | — | 2,912,325 | -354,865 | — | -92,331 | (12,693,312 | ) | |||||||||||||||||||
Foreign Currency Translation Reserve |
(2,576,594 | ) | — | — | — | — | 6,589 | (2,570,005 | ) | |||||||||||||||||||
Total shareholders equity attributable to the Group |
7,526,484 | (10,128,170 | ) | 2,912,325 | (459,982 | ) | (0 | ) | (85,742 | ) | (235,085 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Non Controling Interest |
1,728,427 | (2,031,159 | ) | 123,728 | — | — | — | (179,005 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Stockholders Equity |
9,254,911 | -12,159,329 | 3,036,053 | -459,982 | -0 | -85,742 | -414,089 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total liabilities and stockholders equity |
40,169,875 | -12,159,329 | 3,036,053 | -459,982 | -0 | — | 30,586,617 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* | Others include Lease classification and interest expense. |
Particulars |
31 March 2020 Indian GAAP |
Deferred Tax |
Goodwill |
Others |
31 March 2020 US GAAP |
|||||||||||||||
Revenue |
9,057,344 | — | — | — | 9,057,344 | |||||||||||||||
Cost of revenues |
2,956,059 | — | — | — | 2,956,059 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Gross Profit |
6,101,285 | — | — | — | 6,101,285 | |||||||||||||||
Operating expenses |
||||||||||||||||||||
Selling & Distribution expense |
231,583 | — | — | — | 231,583 | |||||||||||||||
General & Administrative expense |
837,945 | — | — | — | 837,945 | |||||||||||||||
Employee benefits expense |
1,437,745 | — | — | — | 1,437,745 | |||||||||||||||
Depreciation and amortisation |
1,404,801 | — | (95,982 | ) | — | 1,308,820 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Operating Expenses |
3,912,074 | — | (95,982 | ) | — | 3,816,092 | ||||||||||||||
Operating Income |
2,189,211 |
— |
95,982 |
— |
2,285,193 |
|||||||||||||||
Other income |
2,136,145 | — | — | — | 2,136,145 | |||||||||||||||
Interest expense |
2,150,174 | — | 47,631 | 2,197,805 | ||||||||||||||||
Income before income tax |
2,175,182 |
— |
95,982 |
(47,631 |
) |
2,223,533 | ||||||||||||||
Income tax expense |
— | 1,468,328 | — | — | 1,468,328 | |||||||||||||||
Net Income |
2,175,182 |
(1,468,328 |
) |
95,982 |
(47,631 |
) |
755,205 |
|||||||||||||
Net income attributable to non controlling interest |
22,802 | (25,339 | ) | — | — | (2,536 | ) | |||||||||||||
Net income available to the owners of the parent |
2,152,380 |
(1,442,990 |
) |
95,982 |
(47,631 |
) |
757,741 |
|||||||||||||
Net Income |
2,152,380 | (1,442,990 | ) | 95,982 | (47,631 | ) | 757,741 | |||||||||||||
Other Comprehensive Income/(loss), net of tax |
||||||||||||||||||||
Translation adjustments with no tax impact |
(668,436 |
) |
6,589 | (661,846 |
) | |||||||||||||||
Total other comprehensive income/(loss) |
(668,436 |
) |
— |
— |
6,589 |
(661,846 |
) | |||||||||||||
Comprehensive Income |
1,483,944 | (1,442,990 | ) | 95,982 | (41,042 | ) | 95,895 | |||||||||||||
Comprehensive Income (loss) attributable to the non-controlling interest |
— | — | — | — | — | |||||||||||||||
Comprehensive Income attributable to the owners of the parent |
1,483,944 |
(1,442,990 |
) |
95,982 |
(41,042 |
) |
95,895 |
Particulars |
31 March 2020 Indian GAAP |
Others |
31 March 2020 US GAAP |
|||||||||
Net cash (used in) operating activities (A) |
1,373,293 | — | 1,373,293 | |||||||||
Net cash (used in) investing activities (B) |
(1,004,711 | ) | — | (1,004,711 | ) | |||||||
Net cash provided by financing activities (C) |
(849,365 | ) | — | (849,365 | ) | |||||||
Net (decrease) in cash and cash equivalent (A+B+C) |
(480,782 |
) |
— |
(480,782 | ) | |||||||
Cash and cash equivalents at the beginning of the year |
592,684 | — | 592,684 | |||||||||
Cash and cash equivalents at the end of the year |
111,902 |
— | 111,902 |
A. | Revaluation Reserve |
B. | Recognition of Deferred Taxes |
C. | Goodwill |
D. | Classification of Prefernce Shares |
E. | Lease classification |
F. | Restricted cash classification |
G. | Interest Expense |
33 |
The Company has considered the possible effects that may result from the pandemic relating to COVID-19 on the carrying amounts of receivables and investment in subsidiaries. In |
34 |
Previous year’s figures have been regrouped/ reclassified wherever necessary to conform to current year’s classification/ disclosure. |
For and on behalf of the Board of Directors of | ||
Glocal Healthcare Systems Private Limited |
Dr. Syed Sabahat Azim Director |
Richa Sana Azim Director | |||
DIN: 03122895 | DIN: 02609003 |
Page | ||||
F-245 -F-246 | ||||
CONSOLIDATED FINANCIAL STATEMENTS |
||||
F-248 -F-249 | ||||
F-250 | ||||
F-251 - F-252 | ||||
F-253 - F-255 | ||||
F-256 - F-276 |
|
Plante & Moran, LLC Suite 600 8181 E. Tufts Avenue Denver, CO 80237 Tel: 303.740.9400 Fax: 303.740.9009 plantemoran.com |
Successor | ||||||||
December 31, 2020 |
December 31, 2019 |
|||||||
ASSETS |
||||||||
CURRENT ASSETS |
||||||||
Cash |
$ | 2,426,780 | $ | 549,669 | ||||
Restricted cash |
1,332,600 | — | ||||||
Accounts receivable, net |
1,554,378 | 3,163,975 | ||||||
Prepaid expenses and other current assets |
241,304 | 80,096 | ||||||
|
|
|
|
|||||
Total current assets |
5,555,062 | 3,793,740 | ||||||
|
|
|
|
|||||
PROPERTY AND EQUIPMENT, net |
520,907 | 420,957 | ||||||
|
|
|
|
|||||
OTHER ASSETS |
||||||||
Security deposits |
271,070 | 265,734 | ||||||
Goodwill |
13,299,090 | 13,299,090 | ||||||
|
|
|
|
|||||
13,570,160 | 13,564,824 | |||||||
|
|
|
|
|||||
$ | 19,646,129 | $17,779,521 | ||||||
|
|
|
|
Successor | ||||||||
December 31, 2020 |
December 31, 2019 |
|||||||
LIABILITIES AND EQUITY |
||||||||
CURRENT LIABILITIES |
||||||||
Revolving line of credit |
$ | 1,750,000 | $ | 250,000 | ||||
Current maturities of long-term debt, net of unamortized debt issuance costs |
957,813 | 957,813 | ||||||
Current maturities of paycheck protection program loans |
850,135 | — | ||||||
Current portion of contingent consideration due to seller (Note B) |
28,667 | 631,604 | ||||||
Current portion of due to related parties |
1,393,258 | — | ||||||
Accounts payable |
860,794 | 483,668 | ||||||
Income taxes payable |
29,058 | 89,058 | ||||||
Accrued payroll and other |
562,263 | 109,385 | ||||||
|
|
|
|
|||||
Total current liabilities |
6,431,988 | 2,521,528 | ||||||
|
|
|
|
|||||
LONG-TERM LIABILITIES |
||||||||
Long-term debt, less current maturities, net of unamortized debt issuance costs |
8,433,987 | 9,391,800 | ||||||
Deferred income taxes |
420,056 | 718,787 | ||||||
Contingent consideration due to seller (Note B), less current portion |
— | 421,944 | ||||||
Due to related parties, less current portion |
— | 25,000 | ||||||
Paycheck protection program loans, less current portion |
433,366 | — | ||||||
|
|
|
|
|||||
9,287,409 | 10,557,531 | |||||||
|
|
|
|
|||||
MEZZANINE EQUITY - REDEEMABLE PREFERRED UNITS |
||||||||
2,000,000 shares authorized, $.0001 par value; 2,000,000 shares issued and outstanding at December 31, 2020 and 2019 (See Note H and Note I) |
1,920,403 | 1,829,431 | ||||||
|
|
|
|
|||||
STOCKHOLDERS’ EQUITY |
||||||||
TTC Healthcare, Inc. stockholders’ equity |
2,033,736 | 2,871,031 | ||||||
Noncontrolling interest |
(27,407 | ) | — | |||||
|
|
|
|
|||||
Total stockholders’ equity |
2,006,329 | 2,871,031 | ||||||
|
|
|
|
|||||
$ | 19,646,129 | $ | 17,779,521 | |||||
|
|
|
|
Successor | Predecessor | |||||||||||
January 1, 2020 through December 31, 2020 |
September 5, 2019 through December 31, 2019 |
January 1, 2019 through September 4, 2019 |
||||||||||
Revenues, net |
||||||||||||
Inpatient and outpatient treatment related services |
$ | 14,839,751 | $ | 5,056,558 | $ | 14,602,429 | ||||||
Detoxification related services |
2,028,532 | 900,152 | 1,662,656 | |||||||||
Diagnostic laboratory related services |
1,700,370 | 772,400 | 1,678,613 | |||||||||
Ancillary medical services |
798,146 | — | — | |||||||||
19,366,799 | 6,729,110 | 17,943,698 | ||||||||||
|
|
|
|
|
|
|||||||
Cost of service |
9,030,391 | 2,964,587 | 6,326,657 | |||||||||
|
|
|
|
|
|
|||||||
Gross profit |
10,336,408 | 3,764,523 | 11,617,041 | |||||||||
|
|
|
|
|
|
|||||||
Operating expenses |
||||||||||||
Selling, general, and administrative |
10,926,543 | 3,193,312 | 8,173,090 | |||||||||
Depreciation |
121,469 | 50,952 | 110,741 | |||||||||
Transaction expenses |
— | 366,825 | — | |||||||||
|
|
|
|
|
|
|||||||
11,048,012 | 3,611,089 | 8,283,831 | ||||||||||
Operating (expense) income |
(711,604 | ) | 153,434 | 3,333,210 | ||||||||
|
|
|
|
|
|
|||||||
Other income (expenses) |
||||||||||||
Interest expense |
(879,366 | ) | (222,618 | ) | — | |||||||
Gain on extinguishment of debt - paycheck protection program loans |
660,851 | — | — | |||||||||
Other income (expense) |
(2,342 | ) | 121,325 | 18,790 | ||||||||
|
|
|
|
|
|
|||||||
(220,857 | ) | (101,293 | ) | 18,790 | ||||||||
|
|
|
|
|
|
|||||||
(Loss) income before income tax expense |
(932,461 | ) | 52,141 | 3,352,000 | ||||||||
Income tax benefit (expense) |
298,731 | (106,385 | ) | — | ||||||||
|
|
|
|
|
|
|||||||
NET (LOSS) INCOME |
(633,730 | ) | (54,244 | ) | 3,352,000 | |||||||
|
|
|
|
|
|
|||||||
Less net loss attributable to noncontrolling interest |
27,407 | — | — | |||||||||
|
|
|
|
|
|
|||||||
Net (loss) income attributable to TTC Healthcare Inc. (successor) Transformations Treatment Center, Inc. and Affiliates (predecessor) |
$ | (606,323 | ) | $ | (54,244 | ) | $ | 3,352,000 | ||||
|
|
|
|
|
|
Predecessor | ||||||||||||||||||||
Common Stock | Additional Paid-in Capital |
Retained Earnings |
Total Equity | |||||||||||||||||
Shares | Amount | |||||||||||||||||||
Balance, January 1, 2019 |
— | — | — | 7,843,908 | 7,843,908 | |||||||||||||||
Contributions |
— | — | — | 1,186,374 | 1,186,374 | |||||||||||||||
Distributions |
— | — | — | (8,369,388) | (8,369,388) | |||||||||||||||
Net income |
— | — | — | 3,352,000 | 3,352,000 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance, September 4, 2019 |
— | $ | — | $— | $4,012,894 | $4,012,894 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
Successor | ||||||||||||||||||||||||||||
TTC Healthcare, Inc. Stockholders’ | Noncontrolling Interest |
Total Equity |
||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital |
Accumulated Deficit |
Stockholders’ Equity |
|||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||
Balance, September 5, 2019 (Inception) |
— | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Issuance of common stock |
8,000,000 | 800 | 2,999,200 | — | 3,000,000 | — | 3,000,000 | |||||||||||||||||||||
Preferred stock dividends |
— | — | — | (45,294 | ) | (45,294 | ) | — | (45,294 | ) | ||||||||||||||||||
Accretion of preferred stock discount |
— | — | — | (29,431 | ) | (29,431 | ) | — | (29,431 | ) | ||||||||||||||||||
Net loss |
— | — | — | (54,244 | ) | (54,244 | ) | — | (54,244 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance, December 31, 2019 |
8,000,000 | 800 | 2,999,200 | (128,969 | ) | 2,871,031 | — | 2,871,031 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Preferred stock dividends |
— | — | — | (140,000 | ) | (140,000 | ) | — | (140,000 | ) | ||||||||||||||||||
Accretion of preferred stock discount |
— | — | — | (90,972 | ) | (90,972 | ) | — | (90,972 | ) | ||||||||||||||||||
Net loss |
— | — | — | (606,323 | ) | (606,323 | ) | (27,407 | ) | (633,730 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance, December 31, 2020 |
8,000,000 | $ | 800 | $ | 2,999,200 | $ | (966,264 | ) | $ | 2,033,736 | $ | (27,407 | ) | $ | 2,006,329 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor | Predecessor | |||||||||||
January 1, 2020 through December 31, 2020 |
September 5, 2019 through December 31, 2019 |
January 1, 2019 through September 4, 2019 |
||||||||||
Cash flows from operating activities |
||||||||||||
Net (loss) income |
$ | (633,730 | ) | $ | (54,244 | ) | $ | 3,352,000 | ||||
Adjustments to reconcile net (loss) income to net cash provided by operating activities |
||||||||||||
Depreciation |
121,469 | 50,952 | 110,741 | |||||||||
Amortization of debt issuance costs |
42,187 | 10,547 | — | |||||||||
Deferred income tax (benefit) expense |
(298,731 | ) | 17,327 | — | ||||||||
Gain on extinguishment of debt - paycheck protection program loans |
(660,851 | ) | — | — | ||||||||
Accretion of contingent consideration due to seller discount |
271,846 | — | — | |||||||||
(Increase) decrease in assets |
||||||||||||
Accounts receivable |
1,609,597 | (104,167 | ) | 549,447 | ||||||||
Prepaid expenses and other current assets |
(161,208 | ) | 221,867 | (55,451 | ) | |||||||
Security deposits |
(5,336 | ) | (95,331 | ) | (52,700 | ) | ||||||
Increase (decrease) in liabilities |
||||||||||||
Accounts payable |
377,126 | (68,590 | ) | 129,140 | ||||||||
Income taxes payable |
(60,000 | ) | 89,058 | — | ||||||||
Accrued payroll and other |
452,878 | 109,385 | (38,732 | ) | ||||||||
Payment of contingent consideration due to seller |
(68,469 | ) | (3,082 | ) | — | |||||||
|
|
|
|
|
|
|||||||
Net cash provided by operating activities |
986,778 | 173,722 | 3,994,445 | |||||||||
|
|
|
|
|
|
|||||||
Cash flows from investing activities |
||||||||||||
Net assets acquired, net of cash |
— | (13,192,825 | ) | — | ||||||||
Purchase of property and equipment |
(221,419 | ) | — | (6,000 | ) | |||||||
|
|
|
|
|
|
|||||||
Net cash used in investing activities |
(221,419 | ) | (13,192,825 | ) | (6,000 | ) | ||||||
|
|
|
|
|
|
Successor | Predecessor | |||||||||||
January 1, 2020 through December 31, 2020 |
September 5, 2019 through December 31, 2019 |
January 1, 2019 through September 4, 2019 |
||||||||||
Cash flows from financing activities |
||||||||||||
Proceeds from revolving line of credit |
$ | 1,500,000 | $ | 500,000 | $ | — | ||||||
Payments on revolving line of credit |
— | (250,000 | ) | — | ||||||||
Proceeds from long-term debt |
— | 10,800,000 | — | |||||||||
Payments on long-term debt |
(1,000,000 | ) | (250,000 | ) | — | |||||||
Debt issuance costs |
— | (210,934 | ) | — | ||||||||
Advances from a related party |
— | 25,000 | — | |||||||||
Issuance of common stock |
— | 3,000,000 | — | |||||||||
Preferred stock dividends |
— | (45,294 | ) | — | ||||||||
Proceeds from paycheck protection program loans |
1,944,352 | — | — | |||||||||
Distributions |
— | — | (8,369,388 | ) | ||||||||
Contributions |
— | — | 1,186,374 | |||||||||
|
|
|
|
|
|
|||||||
Net cash provided by (used in) financing activities |
2,444,352 | 13,568,772 | (7,183,014 | ) | ||||||||
|
|
|
|
|
|
|||||||
INCREASE (DECREASE) IN CASH |
3,209,711 | 549,669 | (3,194,569 | ) | ||||||||
Cash and restricted cash, beginning of year/period |
549,669 | — | 3,689,559 | |||||||||
|
|
|
|
|
|
|||||||
Cash and restricted cash, end of year/period |
$ | 3,759,380 | $ | 549,669 | $ | 494,990 | ||||||
|
|
|
|
|
|
|||||||
Supplemental disclosure of cash flow information |
||||||||||||
Cash paid for interest |
$ | 568,073 | $ | 168,015 | $ | — | ||||||
|
|
|
|
|
|
|||||||
Cash paid for income taxes |
$ | 60,000 | $ | — | $ | — | ||||||
|
|
|
|
|
|
|||||||
Supplemental disclosure of reconciliation of cash and restricted cash |
||||||||||||
Cash |
$ | 2,426,780 | $ | 549,669 | $ | 494,990 | ||||||
Restricted cash |
1,332,600 | — | — | |||||||||
|
|
|
|
|
|
|||||||
Cash and restricted cash, end of year/period |
$ | 3,759,380 | $ | 549,669 | $ | 494,990 | ||||||
|
|
|
|
|
|
Successor | Predecessor | |||||||||||
January 1, 2020 through December 31, 2020 |
September 5, 2019 through December 31, 2019 |
January 1, 2019 through September 4, 2019 |
||||||||||
Supplemental schedule of noncash activities |
||||||||||||
Total identifiable net assets acquired net of cash acquired (see Note B) |
||||||||||||
Accounts receivable |
$ | — | $ | 3,059,808 | $ | — | ||||||
Prepaid expenses and other current assets |
— | 301,963 | — | |||||||||
Property and equipment |
— | 471,909 | — | |||||||||
Security deposits |
— | 170,403 | — | |||||||||
Accounts payable and accrued expenses |
— | (552,258 | ) | — | ||||||||
Deferred tax liability |
— | (701,460 | ) | — | ||||||||
|
|
|
|
|
|
|||||||
— | 2,750,365 | — | ||||||||||
Goodwill |
— | 13,299,090 | — | |||||||||
|
|
|
|
|
|
|||||||
— | 16,049,455 | — | ||||||||||
Less redeemable preferred stock |
— | (1,800,000 | ) | — | ||||||||
Less non-cash consideration - contingent consideration due to seller |
— | (1,056,630 | ) | — | ||||||||
|
|
|
|
|
|
|||||||
Cash considerations |
$ | — | $ | 13,192,825 | $ | — | ||||||
|
|
|
|
|
|
|||||||
Contingent consideration earned by seller reported as to due to related parties |
$ | 1,228,258 | $ | — | $ | — | ||||||
|
|
|
|
|
|
|||||||
Accrued unpaid preferred dividends reported as to due to related parties |
$ | 140,000 | $ | — | $ | — | ||||||
|
|
|
|
|
|
1. | Nature of Business |
2. | Basis of Consolidation |
2. | Basis of Consolidation (Continued) |
3. | Reclassification |
4. | Restricted Cash |
5. | New Accounting Pronouncement |
5. | New Accounting Pronouncement (Continued) |
6. | Revenue Recognition |
6. | Revenue Recognition (Continued) |
a. |
Transformations Treatment Center, Inc. and Transformations Mending Fences, LLC |
b. |
Summit Detox, Inc. |
c. |
Pinnacle Testings, Inc. |
d. |
Wrigley Healthcare Services, Inc. |
e. |
Freedom Now, Inc. |
6. | Revenue Recognition (Continued) |
Successor | Predecessor | |||||||||||||||
December 31, 2020 |
December 31, 2019 |
September 4, 2019 |
||||||||||||||
Inpatient and outpatient treatment related services |
$ | 14,839,751 | $ | 5,056,558 | $ | 14,602,429 | ||||||||||
Detoxification related services |
2,028,532 | 900,152 | 1,662,656 | |||||||||||||
Diagnostic laboratory related services |
1,700,370 | 772,400 | 1,678,613 | |||||||||||||
Ancillary medical services |
798,146 | — | — | |||||||||||||
|
|
|
|
|
|
|||||||||||
$ | 19,366,799 | $ | 6,729,110 | $ | 17,943,698 | |||||||||||
|
|
|
|
|
|
7. | Accounts Receivable |
8. | Property and Equipment |
Years | ||||
Office equipment |
5 | |||
Furnitures and fixtures |
7 | |||
Vehicles |
5 | |||
Software |
3 |
9. | Goodwill |
9. | Goodwill (Continued) |
10. | Business Combinations |
11. | Debt Issuance Costs |
12. | Income Taxes |
12. | Income Taxes (Continued) |
13. | Use of Estimates |
14. | Fair Value of Financial Instruments |
15. | Marketing and Promotion Costs |
16. | Significant Accounting Standards Applicable In A Future Year |
a. | Leases |
Consideration |
||||
Consideration, net of cash acquired of $495,014 |
$ | 13,192,825 | ||
Non-cash consideration - preferred stock |
1,800,000 | |||
Contingent consideration due to seller |
1,056,630 | |||
|
|
|||
$ | 16,049,455 | |||
|
|
Accounts receivable |
$ | 3,059,808 | ||
Prepaid expenses and other current assets |
301,963 | |||
Property and equipment |
471,909 | |||
Security deposits |
170,403 | |||
Goodwill |
13,299,090 | |||
Accounts payable and accrued expenses |
(552,258 | ) | ||
Deferred tax liability |
(701,460 | ) | ||
|
|
|||
$ | 16,049,455 | |||
|
|
Amounts billed for services provided |
$ | 16,003,541 | ||
Less implicit or explicit price concessions |
(12,943,733 | ) | ||
|
|
|||
$ | 3,059,808 | |||
|
|
Successor |
||||||||
December 31, 2020 |
December 31, 2019 |
|||||||
Total contingent consideration due to seller |
$ | 28,667 | $ | 1,053,548 | ||||
Less current portion of contingent consideration due to seller |
(28,667 | ) | (631,604 | ) | ||||
|
|
|
|
|||||
Contingent consideration due to seller, less current portion |
$ | — | $ | 421,944 | ||||
|
|
|
|
Successor Net Receivables |
||||||||
December 31, 2020 |
December 31, 2019 |
|||||||
Third-party payors |
100.00 | % | 100.00 | % | ||||
Patient |
0.00 | % | 0.00 | % | ||||
|
|
|
|
|||||
100.00 | % | 100.00 | % | |||||
|
|
|
|
Successor Net Revenues |
Predecessor Net Revenues |
|||||||||||||||
January 1, 2020 through December 31, 2020 |
September 5, 2019 through December 31, 2019 |
January 1, 2019 through September 4, 2019 |
||||||||||||||
Third-party payors |
94.12 | % | 97.80 | % | 95.24 | % | ||||||||||
Patient |
5.88 | % | 2.20 | % | 4.76 | % | ||||||||||
|
|
|
|
|
|
|||||||||||
100.00 | % | 100.00 | % | 100.00 | % | |||||||||||
|
|
|
|
|
|
Successor | ||||||||
December 31, 2020 |
December 31, 2019 |
|||||||
Office equipment |
$ | 44,776 | $ | 23,871 | ||||
Furnitures and fixtures |
58,400 | 21,556 | ||||||
Leasehold improvements |
409,891 | 311,428 | ||||||
Vehicles |
134,433 | 110,726 | ||||||
Software |
44,307 | 4,328 | ||||||
|
|
|
|
|||||
691,807 | 471,909 | |||||||
Less accumulated depreciation |
170,900 | 50,952 | ||||||
|
|
|
|
|||||
$ | 520,907 | $ | 420,957 | |||||
|
|
|
|
Successor | ||||||||
December 31, 2020 |
December 31, 2019 |
|||||||
As defined in the Agreement described in Note E, the term loan bears interest at the same rate of the revolving line of credit. Principal payments of $83,333 are required monthly for the first forty eight months and $125,000 for the final twelve months, a balloon payment of all outstanding principal and accrued interest due on the maturity date in September 2024 |
$ | 9,550,000 | $ | 10,550,000 | ||||
Less unamortized debt issuance costs |
158,200 | 200,387 | ||||||
|
|
|
|
|||||
9,391,800 | 10,349,613 | |||||||
Less current maturities |
957,813 | 957,813 | ||||||
|
|
|
|
|||||
$ | 8,433,987 | $ | 9,391,800 | |||||
|
|
|
|
The | total future maturities of long-term debt consist of the following at December 31, 2020: |
Principal | Unamortized Debt Issuance Costs |
Net Outstanding Long-Term Debt |
||||||||||
2021 |
$ | 1,000,000 | $ | 42,187 | $ | 957,813 | ||||||
2022 |
1,000,000 | 42,187 | 957,813 | |||||||||
2023 |
1,125,000 | 42,187 | 1,082,813 | |||||||||
2024 |
6,425,000 | 31,639 | 6,393,361 | |||||||||
|
|
|
|
|
|
|||||||
Total |
$ | 9,550,000 | $ | 158,200 | $ | 9,391,800 | ||||||
|
|
|
|
|
|
Related Party |
Non-Related Party |
Total | ||||||||||
2021 |
$ | 887,339 | $ | 833,303 | $ | 1,720,642 | ||||||
2022 |
900,757 | 953,424 | 1,854,181 | |||||||||
2023 |
914,175 | 934,270 | 1,848,445 | |||||||||
2024 |
927,592 | 815,002 | 1,742,594 | |||||||||
2025 |
686,716 | 427,028 | 1,113,744 | |||||||||
Thereafter |
— | 383,415 | 383,415 | |||||||||
|
|
|
|
|
|
|||||||
$ | 4,316,579 | $ | 4,346,442 | $ | 8,663,021 | |||||||
|
|
|
|
|
|
Successor | ||||||||
December 31, 2020 |
December 31, 2019 |
|||||||
Deferred tax assets before valuation allowance |
$ | 192,590 | $ | — | ||||
Valuation allowance |
— | — | ||||||
|
|
|
|
|||||
Deferred tax assets after valuation allowance |
192,590 | — | ||||||
|
|
|
|
|||||
Deferred tax liabilities |
612,646 | 718,787 | ||||||
|
|
|
|
|||||
Net deferred tax assets and liabilities |
$ | 420,056 | $ | 718,787 | ||||
|
|
|
|
Successor | ||||||||
January 1, 2020 through December 31, 2020 |
September 5, 2019 through December 31, 2019 |
|||||||
Current expense |
$ | — | $ | 89,058 | ||||
Deferred (benefit) expense |
(298,731 | ) | 17,327 | |||||
|
|
|
|
|||||
Total income tax (benefit) expense |
$ | (298,731 | ) | $ | 106,385 | |||
|
|
|
|
Successor | ||||||||
January 1, 2020 through December 31, 2020 |
September 5, 2019 through December 31, 2019 |
|||||||
Income tax (benefit) expense at federal statutory rate |
$ | (195,817 | ) | $ | 10,950 | |||
State and local income taxes net of federal tax benefit |
(44,867 | ) | 1,836 | |||||
Nontaxable Paycheck Protection Program loan forgiveness |
(138,779 | ) | — | |||||
Nondeductible contingent consideration |
57,088 | — | ||||||
Nondeductible transaction expenses |
— | 89,058 | ||||||
Other permanent differences |
23,644 | 4,541 | ||||||
|
|
|
|
|||||
Total income tax (benefit) expense |
$ | (298,731 | ) | $ | 106,385 | |||
|
|
|
|
1. | Management Fees |
1. | Management Fees (Continued) |
2. | Due to Related Parties |
1. | Uninsured Cash |
2. | Significant Third-Party Payors |
2. | Significant Third-Party Payors (Continued) |
3. | Contingencies |
4. | COVID-19 |
1. | Merger |
2. | Provider Relief Fund |
2. | Provider Relief Fund (Continued) |
Page | ||||
CONSOLIDATED FINANCIAL STATEMENTS |
||||
F-279 - F-280 | ||||
F-281 | ||||
F-282 | ||||
F-283 - F-284 | ||||
F-285 - F-300 |
January 24, 2021 |
December 31, 2020 |
|||||||
ASSETS |
||||||||
CURRENT ASSETS |
||||||||
Cash |
$ | 1,023,945 | $ | 2,426,780 | ||||
Restricted cash |
1,332,532 | 1,332,600 | ||||||
Accounts receivable, net |
1,714,612 | 1,554,378 | ||||||
Prepaid expenses and other current assets |
245,332 | 241,304 | ||||||
|
|
|
|
|||||
Total current assets |
4,316,421 | 5,555,062 | ||||||
|
|
|
|
|||||
PROPERTY AND EQUIPMENT, net |
530,719 | 520,907 | ||||||
|
|
|
|
|||||
OTHER ASSETS |
||||||||
Security deposits |
281,070 | 271,070 | ||||||
Goodwill |
13,299,090 | 13,299,090 | ||||||
|
|
|
|
|||||
13,580,160 | 13,570,160 | |||||||
|
|
|
|
|||||
$ | 18,427,300 | $ | 19,646,129 | |||||
|
|
|
|
January 24, 2021 |
December 31, 2020 |
|||||||
LIABILITIES AND EQUITY |
||||||||
CURRENT LIABILITIES |
||||||||
Revolving line of credit |
$ | 1,750,000 | $ | 1,750,000 | ||||
Current maturities of long-term debt, net of unamortized debt issuance costs |
874,480 | 957,813 | ||||||
Current maturities of paycheck protection program loans |
850,135 | 850,135 | ||||||
Current portion of contingent consideration due to seller |
28,667 | 28,667 | ||||||
Current portion of due to related parties |
1,393,258 | 1,393,258 | ||||||
Accounts payable |
595,626 | 860,794 | ||||||
Income taxes payable |
29,058 | 29,058 | ||||||
Accrued payroll and other |
592,773 | 562,263 | ||||||
|
|
|
|
|||||
Total current liabilities |
6,133,997 | 6,431,988 | ||||||
|
|
|
|
|||||
LONG-TERM LIABILITIES |
||||||||
Long-term debt, less current maturities, net of unamortized debt issuance costs |
8,433,987 | 8,433,987 | ||||||
Deferred income taxes |
197,801 | 420,056 | ||||||
Paycheck protection program loans, less current portion |
433,366 | 433,366 | ||||||
|
|
|
|
|||||
9,065,154 | 9,287,409 | |||||||
|
|
|
|
|||||
MEZZANINE EQUITY—REDEEMABLE PREFERRED UNITS |
||||||||
2,000,000 shares authorized, $.0001 par value; 2,000,000 shares issued and outstanding at January 24, 2021 and December 31, 2020 (See Note G) |
1,929,435 | 1,920,403 | ||||||
|
|
|
|
|||||
STOCKHOLDERS’ EQUITY |
||||||||
TTC Healthcare, Inc. stockholders’ equity |
1,339,081 | 2,033,736 | ||||||
Noncontrolling interest |
(20,367 | ) | (27,407 | ) | ||||
|
|
|
|
|||||
Total stockholders’ equity |
1,318,714 | 2,006,329 | ||||||
|
|
|
|
|||||
$ | 18,427,300 | $ | 19,646,129 | |||||
|
|
|
|
January 1, 2021 through January 24, 2021 |
January 1, 2020 through March 31, 2020 |
|||||||
Revenues, net |
||||||||
Inpatient and outpatient treatment related services |
$ | 357,465 | $ | 4,397,157 | ||||
Detoxification related services |
109,802 | 509,947 | ||||||
Diagnostic laboratory related services |
11,073 | 397,591 | ||||||
Ancillary medical services |
81,043 | 29,329 | ||||||
|
|
|
|
|||||
559,383 | 5,334,024 | |||||||
|
|
|
|
|||||
Cost of service |
724,299 | 3,006,242 | ||||||
|
|
|
|
|||||
Gross profit |
(164,916 | ) | 2,327,782 | |||||
|
|
|
|
|||||
Operating expenses |
||||||||
General and administrative |
431,330 | 921,336 | ||||||
Selling and marketing |
264,434 | 1,077,169 | ||||||
Depreciation and amortization |
8,323 | 35,267 | ||||||
|
|
|
|
|||||
704,087 | 2,033,772 | |||||||
Operating (expense) income |
(869,003 | ) | 294,010 | |||||
|
|
|
|
|||||
Other income (expenses) |
||||||||
Interest expense |
(31,834 | ) | (184,923 | ) | ||||
Other income |
— | 8,931 | ||||||
|
|
|
|
|||||
(31,834 | ) | (175,992 | ) | |||||
|
|
|
|
|||||
(Loss) income before income tax expense |
(900,837 | ) | 118,018 | |||||
Income tax benefit (expense) |
222,255 | (36,380 | ) | |||||
|
|
|
|
|||||
NET (LOSS) INCOME |
(678,582 | ) | 81,638 | |||||
Less net income attributable to noncontrolling interest |
7,040 | — | ||||||
|
|
|
|
|||||
Net (loss) income attributable to TTC Healthcare Inc. |
$ | (685,622 | ) | $ | 81,638 | |||
|
|
|
|
Common Stock | Additional Paid-in Capital |
Accumulated Deficit |
Stockholders’ Equity |
Noncontrolling Interest |
Total Equity |
|||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||
Balance, January 1, 2021 |
8,000,000 | $ | 800 | $ | 2,999,200 | $ | (966,264 | ) | $ | 2,033,736 | $ | (27,407 | ) | $ | 2,006,329 | |||||||||||||
Accretion of preferred stock discount |
— | — | — | (9,033 | ) | (9,033 | ) | — | (9,033 | ) | ||||||||||||||||||
Net (loss) income |
— | — | — | (685,622 | ) | (685,622 | ) | 7,040 | (678,582 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance, January 24, 2021 |
8,000,000 | $ | 800 | $ | 2,999,200 | $ | (1,660,919 | ) | $ | 1,339,081 | $ | (20,367 | ) | $ | 1,318,714 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance, January 1, 2020 |
8,000,000 | $ | 800 | $ | 2,999,200 | $ | (128,969 | ) | $ | 2,871,031 | $ | — | $ | 2,871,031 | ||||||||||||||
Preferred stock dividends |
— | — | — | (35,000 | ) | (35,000 | ) | — | (35,000 | ) | ||||||||||||||||||
Accretion of preferred stock discount |
— | — | — | (22,743 | ) | (22,743 | ) | — | (22,743 | ) | ||||||||||||||||||
Net income |
— | — | — | 81,638 | 81,638 | — | 81,638 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance, March 31, 2020 |
8,000,000 | $ | 800 | $ | 2,999,200 | $ | (105,074 | ) | $ | 2,894,926 | $ | — | $ | 2,894,926 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January 1, 2021 through January 24, 2021 |
January 1, 2020 through March 31, 2020 |
|||||||
Cash flows from operating activities |
||||||||
Net (loss) income |
$ | (678,582 | ) | $ | 81,638 | |||
Adjustments to reconcile net (loss) income to net cash used in operating activities |
||||||||
Depreciation |
8,323 | 35,267 | ||||||
Amortization of debt issuance costs |
— | 10,547 | ||||||
Deferred income tax benefit |
(222,255 | ) | (164,810 | ) | ||||
(Increase) decrease in assets |
||||||||
Accounts receivable |
(160,234 | ) | (921,334 | ) | ||||
Prepaid expenses and other current assets |
(4,028 | ) | 4,253 | |||||
Security deposits |
(10,000 | ) | (17,826 | ) | ||||
Increase (decrease) in liabilities |
||||||||
Accounts payable |
(265,168 | ) | 4,950 | |||||
Income taxes payable |
— | 201,190 | ||||||
Accrued payroll and other |
30,510 | 556,588 | ||||||
Payment of contingent consideration due to seller |
— | (68,469 | ) | |||||
|
|
|
|
|||||
Net cash used in operating activities |
(1,301,434 | ) | (278,006 | ) | ||||
|
|
|
|
|||||
Cash flows from investing activities |
||||||||
Purchase of property and equipment |
(18,136 | ) | (3,745 | ) |
January 1, 2021 through January 24, 2021 |
January 1, 2020 through March 31, 2020 |
|||||||
Cash flows from financing activities |
||||||||
Proceeds from revolving line of credit |
$ | — | $ | 1,500,000 | ||||
Payments on long-term debt |
(83,333 | ) | (250,000 | ) | ||||
Preferred stock dividends |
— | (35,000 | ) | |||||
|
|
|
|
|||||
Net cash (used in) provided by financing activities |
(83,333 | ) | 1,215,000 | |||||
|
|
|
|
|||||
(Decrease) increase in cash |
(1,402,903 | ) | 933,249 | |||||
Cash, beginning of period |
3,759,380 | 549,669 | ||||||
|
|
|
|
|||||
Cash, end of period |
$ | 2,356,477 | $ | 1,482,918 | ||||
|
|
|
|
|||||
Supplemental disclosure of cash flow information |
||||||||
Cash paid for interest |
$ | 32,284 | $ | 133,982 | ||||
|
|
|
|
|||||
Supplemental disclosure of reconciliation of cash and restricted cash |
||||||||
Cash |
$ | 1,023,945 | $ | 1,482,918 | ||||
Restricted cash |
1,332,532 | — | ||||||
|
|
|
|
|||||
Cash and restricted cash, end of period |
$ | 2,356,477 | $ | 1,482,918 | ||||
|
|
|
|
1. | Nature of Business and Subsequent Event |
2. | Basis of Consolidation |
3. | Restricted Cash |
4. | New Accounting Pronouncement |
4. | New Accounting Pronouncement (continued) |
5. | Revenue Recognition |
5. | Revenue Recognition (continued) |
a. |
Transformations Treatment Center, Inc. and Transformations Mending Fences, LLC |
b. |
Summit Detox, Inc. |
c. |
Pinnacle Testings, Inc. |
d. |
Wrigley Healthcare Services, Inc. |
e. |
Freedom Now, Inc. |
5. | Revenue Recognition (continued) |
January 24, 2021 |
March 31, 2020 |
|||||||
Inpatient and outpatient treatment related services |
$ | 357,465 | $ | 4,397,157 | ||||
Detoxification related services |
109,802 | 509,947 | ||||||
Diagnostic laboratory related services |
11,073 | 397,591 | ||||||
Ancillary medical services |
81,043 | 29,329 | ||||||
|
|
|
|
|||||
$ | 559,383 | $ | 5,334,024 | |||||
|
|
|
|
6. | Accounts Receivable |
6. | Accounts Receivable (continued) |
7. | Property and Equipment |
Years | ||||
Office equipment |
5 | |||
Furnitures and fixtures |
7 | |||
Vehicles |
5 | |||
Software |
3 |
8. | Goodwill |
8. | Goodwill (continued) |
9. | Debt Issuance Costs |
10. | Income Taxes |
11. | Use of Estimates |
12. | Fair Value of Financial Instruments |
13. | Marketing and Promotion Costs |
14. | Significant Accounting Standard Applicable In A Future Year |
a. |
Leases |
Net Receivables | Net Revenues | |||||||||||||||
January 24, 2021 |
December 31, 2020 |
January 1, 2021 through January 24, 2021 |
January 1, 2020 through March 31, 2020 |
|||||||||||||
Third-party payors |
100.00 | % | 100.00 | % | 81.30 | % | 95.00 | % | ||||||||
Patient |
0.00 | % | 0.00 | % | 18.70 | % | 5.00 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
100.00 | % | 100.00 | % | 100.00 | % | 100.00 | % | |||||||||
|
|
|
|
|
|
|
|
January 24, 2021 |
December 31, 2020 |
|||||||
Office equipment |
$ | 61,527 | $ | 44,776 | ||||
Furnitures and fixtures |
58,400 | 58,400 | ||||||
Leasehold improvements |
411,275 | 409,891 | ||||||
Vehicles |
134,433 | 134,433 | ||||||
Software |
44,307 | 44,307 | ||||||
|
|
|
|
|||||
709,942 | 691,807 | |||||||
Less accumulated depreciation |
179,223 | 170,900 | ||||||
|
|
|
|
|||||
$ | 530,719 | $ | 520,907 | |||||
|
|
|
|
January 24, 2021 |
December 31, 2020 |
|||||||
As defined in the Agreement described in Note D, the term loan bears interest at the same rate of the revolving line of credit. Principal payments of $83,333 are required monthly for the first forty-eight months and $125,000 for the final twelve months, a balloon payment of all outstanding principal and accrued interest due on the maturity date in September 2024. |
$ | 9,466,667 | $ | 9,550,000 | ||||
Less unamortized debt issuance costs |
158,200 | 158,200 | ||||||
|
|
|
|
|||||
9,308,467 | 9,391,800 | |||||||
Less current maturities |
874,480 | 957,813 | ||||||
|
|
|
|
|||||
$ | 8,433,987 | $ | 8,433,987 | |||||
|
|
|
|
Year |
Principal | Unamortized Debt Issuance Costs |
Net Outstanding Long-term debt |
|||||||||
Remaining 2021 |
$ | 916,667 | $ | 42,187 | $ | 874,480 | ||||||
2022 |
1,000,000 | 42,187 | 957,813 | |||||||||
2023 |
1,125,000 | 42,187 | 1,082,813 | |||||||||
2024 |
6,425,000 | 31,639 | 6,393,361 | |||||||||
|
|
|
|
|
|
|||||||
Total |
$ | 9,466,667 | $ | 158,200 | $ | 9,308,467 | ||||||
|
|
|
|
|
|
Related Party |
Non-Related Party |
Total | ||||||||||
Remaining 2021 |
$ | 813,689 | $ | 789,007 | $ | 1,602,696 | ||||||
2022 |
900,757 | 953,424 | 1,854,181 | |||||||||
2023 |
914,175 | 934,270 | 1,848,445 | |||||||||
2024 |
927,592 | 815,002 | 1,742,594 | |||||||||
2025 |
686,716 | 427,028 | 1,113,744 | |||||||||
Thereafter |
— | 383,415 | 383,415 | |||||||||
|
|
|
|
|
|
|||||||
$ | 4,242,929 | $ | 4,302,146 | $ | 8,545,075 | |||||||
|
|
|
|
|
|
January 24, 2021 |
December 31, 2020 |
|||||||
Deferred tax assets before valuation allowance |
$ | 243,200 | $ | 192,590 | ||||
Valuation allowance |
— | — | ||||||
|
|
|
|
|||||
Deferred tax assets after valuation allowance |
243,200 | 192,590 | ||||||
|
|
|
|
|||||
Deferred tax liabilities |
441,001 | 612,646 | ||||||
|
|
|
|
|||||
Net deferred tax assets and liabilities |
$ | 197,801 | $ | 420,056 | ||||
|
|
|
|
January 1, 2021 through January 24, 2021 |
January 1, 2020 through March 31, 2020 |
|||||||
Current expense |
$ | — | $ | 201,190 | ||||
Deferred benefit |
(222,255 | ) | (164,810 | ) | ||||
|
|
|
|
|||||
Total income tax (benefit) expense |
$ | (222,255 | ) | $ | 36,380 | |||
|
|
|
|
January 1, 2021 through January 24, 2021 |
January 1, 2020 through March 31, 2020 |
|||||||
Income tax (benefit) expense at federal statutory rate |
$ | (189,176 | ) | $ | 24,784 | |||
State and local income taxes net of federal tax (benefit) expense |
(31,920 | ) | 3,262 | |||||
Nondeductible contingent consideration |
— | (7,350 | ) | |||||
Other permanent (benefit) expense |
(1,159 | ) | 15,684 | |||||
|
|
|
|
|||||
Total income tax (benefit) expense |
$ | (222,255 | ) | $ | 36,380 | |||
|
|
|
|
1. | Management Fees |
2. | Due to Related Parties |
1. | Uninsured Cash |
2. | Significant Third-Party Payors |
3. | Contingencies |
3. | Contingencies (continued) |
4. | COVID-19 |
F-303 | ||||
F-304 | ||||
F-305 | ||||
F-306 | ||||
F-307 | ||||
F-308 |
December 31 |
||||||||
2020 |
2019 |
|||||||
Assets |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 3,319,074 | $ | 2,199,018 | ||||
Accounts receivable, net |
36,024 | 11,710 | ||||||
Other receivables |
30,613 | 93,162 | ||||||
Inventory |
2,467,216 | 1,990,744 | ||||||
Prepaid expenses and other current assets |
587,647 | 419,761 | ||||||
|
|
|
|
|||||
Total current assets |
6,440,574 | 4,714,395 | ||||||
Property and Equipment, net of accumulated depreciation |
8,068,620 | 8,193,587 | ||||||
Other assets |
22,805 | 15,063 | ||||||
|
|
|
|
|||||
Total Assets |
$ | 14,531,999 | $ | 12,923,045 |
||||
|
|
|
|
|||||
Liabilities and Shareholders’ Equity |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 408,738 | $ | 739,929 | ||||
Accrued expenses |
541,098 | 315,709 | ||||||
Accrued compensation and related taxes |
611,068 | 612,620 | ||||||
Unearned revenue |
86,224 | 189,847 | ||||||
Notes payable, current portion |
540,327 | 212,761 | ||||||
|
|
|
|
|||||
Total current liabilities |
2,187,455 | 2,070,866 | ||||||
Long-term liabilities: |
||||||||
Notes payable, net of current portion |
5,384,819 | 4,473,679 | ||||||
|
|
|
|
|||||
Total liabilities |
7,572,274 | 6,544,545 | ||||||
Shareholders’ equity: |
||||||||
Common stock, no par value, 1,000,000 shares authorized 475,000 shares issued and outstanding as of December 31, 2020 and 2019 |
5,080 | 5,080 | ||||||
Retained earnings |
6,250,843 | 5,747,432 | ||||||
Non-controlling interest |
703,802 | 625,988 | ||||||
|
|
|
|
|||||
6,959,725 | 6,378,500 | |||||||
|
|
|
|
|||||
Total Liabilities and Shareholders’ Equity |
$ | 14,531,999 | $ | 12,923,045 | ||||
|
|
|
|
2020 |
2019 |
|||||||
Revenue, net of returns and allowances |
$ | 28,335,405 | $ | 28,829,841 | ||||
Cost of sales |
13,226,492 | 14,297,936 | ||||||
|
|
|
|
|||||
Gross profit |
15,108,913 | 14,531,905 | ||||||
Operating expenses |
12,484,392 | 11,192,295 | ||||||
Operating income |
2,624,521 | 3,339,610 | ||||||
Nonoperating income and (expense): |
||||||||
Interest expense |
(269,382 | ) | (183,269 | ) | ||||
Other expense |
(38,914 | ) | (103,578 | ) | ||||
|
|
|
|
|||||
Total nonoperating other income and (expense) |
(308,296 | ) | (286,847 | ) | ||||
|
|
|
|
|||||
Net income |
$ | 2,316,225 | $ | 3,052,763 | ||||
Less: Income attributable to non-controlling interest |
77,814 | 48,430 | ||||||
|
|
|
|
|||||
Net income attributable to Innovations Group, Inc. |
2,238,411 | 3,004,333 | ||||||
Net income per share |
$ | 4.71 | $ | 6.33 | ||||
|
|
|
|
|||||
Weighted average number of shares outstanding |
475,000 | 475,000 | ||||||
|
|
|
|
Common Stock |
Retained Earnings |
Total Shareholders’ Equity |
Non-controlling Interest |
Total |
||||||||||||||||||||
Shares |
Amount |
|||||||||||||||||||||||
Balance at December 31, 2018 |
475,000 | $ | 5,080 | $ | 4,222,099 | $ | 4,227,179 | $ | 791,927 | $ | 5,019,106 | |||||||||||||
Distributions |
— | — | (1,479,000 | ) | (1,479,000 | ) | (214,369 | ) | (1,693,369 | ) | ||||||||||||||
Net income |
— | — | 3,004,333 | 3,004,333 | 48,430 | 3,052,763 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance at December 31, 2019 |
475,000 | 5,080 | 5,747,432 | 5,752,512 | 625,988 | 6,378,500 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Distributions |
— | — | (1,735,000 | ) | (1,735,000 | ) | — | (1,735,000 | ) | |||||||||||||||
Net income |
— | — | 2,238,411 | 2,238,411 | 77,814 | 2,316,225 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance at December 31, 2020 |
475,000 | $ | 5,080 | $ | 6,250,843 | $ | 6,255,923 | $ | 703,802 | $ | 6,959,725 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
December 31 |
||||||||
2020 |
2019 |
|||||||
Cash flows from operating activities: |
||||||||
Net income |
$ | 2,316,225 | $ | 3,052,763 | ||||
Adjustments to reconcile net income to net cash provided by operating activities; |
||||||||
Depreciation and Amortization |
522,075 | 318,629 | ||||||
Loss (gain) on disposal of assets |
4,676 | 62,513 | ||||||
Changes in operating assets and liabilities: |
||||||||
Accounts receivable |
(24,314 | ) | 10,308 | |||||
Other receivables |
62,549 | 48,841 | ||||||
Inventory |
(476,472 | ) | 221,117 | |||||
Prepaid expenses and other current assets |
(167,886 | ) | 48,028 | |||||
Accounts payable |
(331,191 | ) | 239,365 | |||||
Accrued Expenses |
225,389 | (26,819 | ) | |||||
Accrued compensation and related taxes |
(1,552 | ) | (10,803 | ) | ||||
Unearned revenue |
(103,623 | ) | (81,917 | ) | ||||
|
|
|
|
|||||
Net cash provided by operating activities |
2,025,876 | 3,882,025 | ||||||
Cash flows from investing activities |
||||||||
Proceeds from sale of fixed assets |
2,870 | — | ||||||
Purchases of property and equipment |
(412,396 | ) | (3,809,455 | ) | ||||
|
|
|
|
|||||
Net cash used in investing activities |
(409,526 | ) | (3,809,455 | ) | ||||
Cash flows from financing activities |
||||||||
Distributions |
(1,735,000 | ) | (1,693,369 | ) | ||||
Repayment of debt |
(835,294 | ) | (72,293 | ) | ||||
Proceeds from borrowing from bank |
2,074,000 | 1,379,418 | ||||||
|
|
|
|
|||||
Net cash used in financing activities |
(496,294 | ) | (386,244 | ) | ||||
Net increase decrease in cash |
1,120,056 | (313,674 | ) | |||||
Cash and cash equivalents — beginning |
2,199,018 | 2,512,692 | ||||||
|
|
|
|
|||||
Cash and cash equivalents — ending |
$ | 3,319,074 | $ | 2,199,018 | ||||
|
|
|
|
|||||
Supplemental disclosures: |
||||||||
Interest paid |
$ | 269,382 | $ | 183,269 | ||||
|
|
|
|
Category |
Estimated Useful Life | |
Furniture and Fixtures |
5 – 10 years | |
Office Equipment and Software |
3 – 7 years | |
Compounding and Lab Equipment |
5 – 10 years | |
Building and building improvements |
5 – 39 years |
2020 | 2019 | |||||||
Raw materials |
$ | 1,300,615 | $ | 1,136,848 | ||||
Work in process |
11,723 | 30,319 | ||||||
Finished goods |
1,172,561 | 886,258 | ||||||
|
|
|
|
|||||
2,484,899 | 2,053,425 | |||||||
Inventory allowance |
(17,683 | ) | (62,681 | ) | ||||
|
|
|
|
|||||
Total net inventory |
$ | 2,467,216 | $ | 1,990,744 | ||||
|
|
|
|
2020 | 2019 | |||||||
Furniture and fixtures |
$ | 366,397 | $ | 316,384 | ||||
Office equipment and software |
866,428 | 837,537 | ||||||
Compounding and lab equipment |
746,437 | 653,355 | ||||||
Building and building improvements |
7,289,708 | 7,079,748 | ||||||
Land |
811,103 | 811,103 | ||||||
|
|
|
|
|||||
10,083,073 | 9,698,127 | |||||||
Accumulated Depreciation |
(2,014,453 | ) | (1,504,540 | ) | ||||
|
|
|
|
|||||
Total net fixed assets |
$ | 8,068,620 | $ | 8,193,587 | ||||
|
|
|
|
2021 |
$ | 540,327 | ||
2022 |
612,851 | |||
2023 |
619,909 | |||
2024 |
418,742 | |||
2025 |
255,559 | |||
Thereafter |
3,477,758 | |||
|
|
|||
Total future payments |
$ | 5,925,146 | ||
|
|
Years of Vesting Service |
Vesting Percentage | |
Less than 1 |
0% | |
1 |
25% | |
2 |
50% | |
3 or more |
100% |
2021 |
60,480 | |||
2022 |
60,480 | |||
2023 |
60,480 | |||
2024 |
60,480 | |||
|
|
|||
Total minimum lease payments |
$ | 241,920 | ||
|
|
2020 | 2019 | |||||||
Operating expenses |
$ | 260,381 | $ | 116,058 | ||||
Profit sharing contributions |
138,845 | 125,995 | ||||||
Credit cards |
80,675 | 20,573 | ||||||
Sale tax |
61,197 | 53,083 | ||||||
|
|
|
|
|||||
Total |
$ | 541,098 | $ | 315,709 | ||||
|
|
|
|
F-318 | ||||
F-319 | ||||
F-320 | ||||
F-321 | ||||
F-322 |
As of |
||||||||
April 26, 2021 |
December 31, 2020 |
|||||||
Assets |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 554,776 | $ | 3,319,074 | ||||
Accounts receivable, net |
18,204 | 36,024 | ||||||
Other receivables |
29,190 | 30,613 | ||||||
Inventory |
2,692,768 | 2,467,216 | ||||||
Prepaid expenses and other current assets |
529,925 | 587,647 | ||||||
|
|
|
|
|||||
Total current assets |
3,824,863 | 6,440,574 | ||||||
Property and equipment, net of accumulated depreciation |
7,936,504 | 8,068,620 | ||||||
Other assets |
22,124 | 22,805 | ||||||
|
|
|
|
|||||
Total Assets |
$ | 11,783,491 | $ | 14,531,999 | ||||
|
|
|
|
|||||
Liabilities and Shareholders’ Equity |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 472,088 | $ | 408,738 | ||||
Accrued expenses |
268,330 | 541,098 | ||||||
Accrued compensation and related taxes |
511,708 | 611,068 | ||||||
Unearned revenue |
301,737 | 86,224 | ||||||
Notes payable, current portion |
116,480 | 540,327 | ||||||
|
|
|
|
|||||
Total current liabilities |
1,670,343 | 2,187,455 | ||||||
Long-term liabilities: |
||||||||
Notes payable, net of current portion |
3,952,595 | 5,384,819 | ||||||
|
|
|
|
|||||
Total liabilities |
5,622,938 | 7,572,274 | ||||||
Shareholders’ equity: |
||||||||
Common stock, no par value, 1,000,000 shares authorized 475,000 shares issued and outstanding as of April 26, 2021 and December 31, 2020 |
2,555,080 | 5,080 | ||||||
Retained earnings |
3,071,792 | 6,250,843 | ||||||
Non-controlling interest |
533,681 | 703,802 | ||||||
|
|
|
|
|||||
6,160,553 | 6,959,725 | |||||||
|
|
|
|
|||||
Total Liabilities and Shareholders’ Equity |
$ | 11,783,491 | $ | 14,531,999 | ||||
|
|
|
|
April 1, 2021 to April 26, 2021 |
April 1, 2020 to June 30, 2020 |
January 1, 2021 to April 26, 2021 |
January 1, 2020 to June 30, 2020 |
|||||||||||||
Revenue, net |
$ | 1,896,154 | $ | 6,756,820 | $ | 8,920,349 | $ | 14,321,409 | ||||||||
Cost of sales |
1,145,615 | 3,050,649 | 5,597,688 | 6,699,405 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Gross profit |
750,539 | 3,706,171 | 3,322,661 | 7,622,004 | ||||||||||||
Operating expenses |
(5,163,334 | ) | 3,064,327 | 7,254,978 | 5,997,004 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Operating income (loss) |
(4,412,795 | ) | 641,844 | (3,932,317 | ) | 1,625,000 | ||||||||||
Nonoperating other income (expense) |
||||||||||||||||
Forgiveness of debt income |
— | — | 1,174,000 | — | ||||||||||||
Other income (expense) |
(20,232 | ) | 14,463 | (79,855 | ) | (65,193 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Total nonoperating other income (expense) |
(20,232 | ) | 14,463 | 1,094,145 | (65,193 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income (loss) |
(4,433,027 | ) | 656,307 | (2,838,172 | ) | 1,559,807 | ||||||||||
Less: Income attributable to non-controling interest |
6,874 | 21,289 | 29,879 | 40,369 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income (loss) attributable to Innovations Group, Inc. |
$ | (4,439,901 | ) | $ | 635,018 | $ | (2,868,051 | ) | $ | 1,519,438 | ||||||
|
|
|
|
|
|
|
|
|||||||||
Net income (loss) per share |
$ | (9.35 | ) | $ | 1.34 | $ | (6.04 | ) | $ | 3.20 | ||||||
|
|
|
|
|
|
|
|
|||||||||
Weighted average number of shares outstanding |
475,000 | 475,000 | 475,000 | 475,000 | ||||||||||||
|
|
|
|
|
|
|
|
Common Stock |
Retained Earnings |
Total Shareholders’ Equity |
Non-controlling Interest |
Total |
||||||||||||||||||||
Shares |
Amount |
|||||||||||||||||||||||
Balance at December 31, 2019 |
475,000 | $ | 5,080 | $ | 5,747,432 | $ | 5,752,512 | $ | 625,988 | $ | 6,378,500 | |||||||||||||
Distributions |
— | — | (267,000 | ) | (267,000 | ) | — | (267,000 | ) | |||||||||||||||
Net income |
— | — | 884,420 | 884,420 | 19,080 | 903,500 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance at March 31, 2020 (unaudited) |
475,000 | 5,080 | 6,364,852 | 6,369,932 | 645,068 | 7,015,000 | ||||||||||||||||||
Distributions |
— | — | (579,000 | ) | (579,000 | ) | — | (579,000 | ) | |||||||||||||||
Net income |
— | — | 635,018 | 635,018 | 21,289 | 656,307 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance at June 30, 2020 (unaudited) |
475,000 | $ | 5,080 | $ | 6,420,870 | $ | 6,425,950 | $ | 666,357 | $ | 7,092,307 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance at December 31, 2020 |
475,000 | $ | 5,080 | $ | 6,250,843 | $ | 6,255,923 | $ | 703,802 | $ | 6,959,725 | |||||||||||||
Distributions |
— | — | (111,000 | ) | (111,000 | ) | (200,000 | ) | (311,000 | ) | ||||||||||||||
Net income |
— | — | 1,571,850 | 1,571,850 | 23,005 | 1,594,855 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance at March 31, 2021 (unaudited) |
475,000 | 5,080 | 7,711,693 | 7,716,773 | 526,807 | 8,243,580 | ||||||||||||||||||
Distributions |
— | — | (200,000 | ) | (200,000 | ) | — | (200,000 | ) | |||||||||||||||
Stock contribution |
2,550,000 | 2,550,000 | 2,550,000 | |||||||||||||||||||||
Net income (loss) |
— | — | (4,439,901 | ) | (4,439,901 | ) | 6,874 | (4,433,027 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance at April 26, 2021 (unaudited) |
475,000 | $ | 2,555,080 | $ | 3,071,792 | $ | 5,626,872 | $ | 533,681 | $ | 6,160,553 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
January 1 to April 26, 2021 |
January 1 to June 30 2020 |
|||||||
Cash flows from operating activities: |
||||||||
Net income (loss) |
$ | (2,838,172 | ) | $ | 1,559,807 | |||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
Depreciation and amortization |
170,115 | 255,450 | ||||||
Forgiveness of debt income |
(1,174,000 | ) | — | |||||
Stock contribution |
2,550,000 | — | ||||||
Changes in operating assets and liabilities: |
||||||||
Accounts receivable |
17,820 | — | ||||||
Other receivables |
1,423 | (145,145 | ) | |||||
Inventory |
(225,551 | ) | (144,547 | ) | ||||
Prepaid expenses and other current assets |
57,722 | (44,711 | ) | |||||
Accounts payable |
63,350 | (135,106 | ) | |||||
Accrued expenses |
(272,268 | ) | 101,484 | |||||
Accrued compensation and related taxes |
(99,360 | ) | 22,721 | |||||
Unearned revenue |
215,513 | (30,892 | ) | |||||
|
|
|
|
|||||
Net cash (used in) provided by operating activities |
(1,533,408 | ) | 1,439,061 | |||||
Cash flows from investing activities |
||||||||
Purchases of property and equipment |
(37,819 | ) | (326,738 | ) | ||||
|
|
|
|
|||||
Net cash (used in) investing activities |
(37,819 | ) | (326,738 | ) | ||||
Cash flows from financing activities |
||||||||
Distributions |
(511,000 | ) | (579,000 | ) | ||||
Repayment of debt |
(682,071 | ) | (101,041 | ) | ||||
Proceeds from borrowing from bank |
— | 900,000 | ||||||
|
|
|
|
|||||
Net cash provided by financing activities |
(1,193,071 | ) | 219,959 | |||||
|
|
|
|
|||||
Net (decrease) increase in cash |
(2,764,298 | ) | 1,332,282 | |||||
|
|
|
|
|||||
Cash and cash equivalents — beginning |
3,319,074 | 2,199,018 | ||||||
|
|
|
|
|||||
Cash and cash equivalents — ending |
$ | 554,776 | $ | 3,531,300 | ||||
|
|
|
|
|||||
Supplemental disclosures: |
||||||||
Interest paid |
$ | 79,177 | $ | 127,817 | ||||
|
|
|
|
Category |
Estimated Useful Life | |
Furniture and Fixtures |
5 – 10 years | |
Office Equipment and Software |
3 – 7 years | |
Compounding and Lab Equipment |
5 – 10 years | |
Building and building improvements |
5 – 39 years |
2021 | 2020 | |||||||
Raw materials |
$ | 1,386,560 | $ | 1,300,615 | ||||
Work in process |
1,463 | 11,723 | ||||||
Finished goods |
1,324,535 | 1,172,561 | ||||||
|
|
|
|
|||||
2,712,558 | 2,484,899 | |||||||
Inventory allowance |
(19,790 | ) | (17,683 | ) | ||||
|
|
|
|
|||||
Total net inventory |
$ | 2,692,768 | $ | 2,467,216 | ||||
|
|
|
|
2021 | 2020 | |||||||
Furniture and fixtures |
$ | 371,102 | $ | 366,397 | ||||
Office equipment and software |
711,258 | 869,428 | ||||||
Compounding and lab equipment |
746,437 | 746,437 | ||||||
Building and building improvements |
7,289,708 | 7,289,708 | ||||||
Land |
811,103 | 811,103 | ||||||
|
|
|
|
|||||
9,929,608 | 10,083,073 | |||||||
Accumulated Depreciation |
(1,993,104 | ) | (2,014,453 | ) | ||||
|
|
|
|
|||||
Total net fixed assets |
$ | 7,936,504 | $ | 8,068,620 | ||||
|
|
|
|
Remaining 2021 |
$ | 77,071 | ||
2022 |
120,016 | |||
2023 |
125,535 | |||
2024 |
131,320 | |||
2025 |
137,384 | |||
Thereafter |
3,477,749 | |||
|
|
|||
Total future payments |
$ | 4,069,075 | ||
|
|
Years of Vesting Service |
Vesting Percentage | |
Less than 1 |
0% | |
1 |
25% | |
2 |
50% | |
3 or more |
100% |
Remaining 2021 |
40,320 | |||
2022 |
60,480 | |||
2023 |
60,480 | |||
2024 |
60,480 | |||
|
|
|||
Total minimum lease payments |
$ | 221,760 | ||
|
|
Page | ||||
F-332 | ||||
F-334 | ||||
F-335 | ||||
F-336 | ||||
F-337 | ||||
F-338-F-347 |
November 20, 2020 |
December 31, 2019 |
|||||||
ASSETS |
||||||||
CURRENT ASSETS |
||||||||
Cash |
$ | 1,024,485 | $ | 111,346 | ||||
Accounts receivable |
||||||||
Patient receivables, net |
1,239,075 | 882,925 | ||||||
Other accounts receivable |
18,379 | 25,278 | ||||||
Inventories |
99,583 | 158,357 | ||||||
Prepaid expenses |
39,806 | 18,568 | ||||||
Due from related parties |
327,061 | 27,936 | ||||||
|
|
|
|
|||||
Total current assets |
2,748,389 | 1,224,410 | ||||||
|
|
|
|
|||||
PROPERTY AND EQUIPMENT, net |
52,568 | 61,812 | ||||||
SECURITY DEPOSITS |
4,375 | 4,375 | ||||||
|
|
|
|
|||||
$ | 2,805,332 | $ | 1,290,597 | |||||
|
|
|
|
|||||
LIABILITIES AND MEMBERS’ EQUITY |
||||||||
CURRENT LIABILITIES |
||||||||
Accounts payable |
$ | 261,706 | $ | 577,725 | ||||
Accounts payable, related party |
42,826 | — | ||||||
Due to member |
70,000 | — | ||||||
Accrued payroll and related liabilities |
425,790 | 93,896 | ||||||
Paycheck protection program loan |
1,004,900 | — | ||||||
Provider relief funds |
228,794 | — | ||||||
|
|
|
|
|||||
Total current liabilities |
2,034,016 | 671,621 | ||||||
|
|
|
|
|||||
MEMBERS’ EQUITY |
771,316 | 618,976 | ||||||
|
|
|
|
|||||
$ | 2,805,332 | $ | 1,290,597 | |||||
|
|
|
|
January 1, 2020 through November 20, 2020 |
January 1, 2019 through December 31, 2019 |
|||||||
Revenues, net |
$ | 11,842,219 | $ | 12,528,464 | ||||
Cost of goods sold |
3,151,603 | 3,384,859 | ||||||
|
|
|
|
|||||
Gross profit |
8,690,616 | 9,143,605 | ||||||
|
|
|
|
|||||
Operating expenses |
||||||||
Provider compensation |
5,261,139 | 5,436,758 | ||||||
Selling, general, and administrative |
3,219,247 | 3,485,518 | ||||||
Depreciation and amortization |
17,890 | 18,205 | ||||||
|
|
|
|
|||||
8,498,276 | 8,940,481 | |||||||
|
|
|
|
|||||
NET INCOME |
$ | 192,340 | $ | 203,124 | ||||
|
|
|
|
Members’ Capital |
Members’ Retained Earnings |
Total Members’ Equity |
||||||||||
Balance, January 1, 2019 |
$ | 20,000 | $ | 395,852 | $ | 415,852 | ||||||
Net income |
— | 203,124 | 203,124 | |||||||||
|
|
|
|
|
|
|||||||
Balance, December 31, 2019 |
20,000 | 598,976 | 618,976 | |||||||||
Capital contribution |
40,000 | — | 40,000 | |||||||||
Member redemptions |
(20,000 | ) | (60,000 | ) | (80,000 | ) | ||||||
Net income |
— | 192,340 | 192,340 | |||||||||
|
|
|
|
|
|
|||||||
Balance, November 20, 2020 |
$ | 40,000 | $ | 731,316 | $ | 771,316 | ||||||
|
|
|
|
|
|
January 1, 2020 through November 20, 2020 |
January 1, 2019 through December 31, 2019 |
|||||||
Cash flows from operating activities |
||||||||
Net income |
$ | 192,340 | $ | 203,124 | ||||
Adjustments to reconcile net income to net cash used in operating activities |
||||||||
Depreciation |
17,890 | 18,205 | ||||||
(Increase) decrease in assets |
||||||||
Patient receivables |
(356,150 | ) | (38,522 | ) | ||||
Other accounts receivable |
6,899 | 517 | ||||||
Inventories |
58,774 | 14,043 | ||||||
Prepaid expenses |
(21,238 | ) | (3,402 | ) | ||||
Increase (decrease) in liabilities |
||||||||
Accounts payable |
(316,019 | ) | (225,505 | ) | ||||
Accounts payable, related party |
42,826 | — | ||||||
Accrued payroll and related liabilities |
331,894 | 6,081 | ||||||
Proceeds from provider relief funds |
228,794 | — | ||||||
|
|
|
|
|||||
Net provided by (used in) operating activities |
186,010 | (25,459 | ) | |||||
|
|
|
|
|||||
Cash flows from investing activities |
||||||||
Purchase of property and equipment |
(8,646 | ) | (3,198 | ) | ||||
Due from related parties |
(299,125 | ) | (22,477 | ) | ||||
|
|
|
|
|||||
Net cash used in investing activities |
(307,771 | ) | (25,675 | ) | ||||
|
|
|
|
|||||
Cash flows from financing activities |
||||||||
Member contributions |
40,000 | — | ||||||
Member redemptions |
(10,000 | ) | — | |||||
Proceeds from paycheck protection program loan |
1,004,900 | — | ||||||
|
|
|
|
|||||
Net cash provided by financing activities |
1,034,900 | — | ||||||
|
|
|
|
|||||
INCREASE (DECREASE) IN CASH |
913,139 | (51,134 | ) | |||||
Cash, beginning of period |
111,346 | 162,480 | ||||||
|
|
|
|
|||||
Cash, end of period |
$ | 1,024,485 | $ | 111,346 | ||||
|
|
|
|
|||||
Supplemental schedule of noncash financing activities |
||||||||
Redemption proceeds due to member |
$ | 70,000 | $ | — | ||||
|
|
|
|
1. | Nature of Business and Subsequent Event |
2. | Basis of Consolidation |
3. | New Accounting Pronouncement |
4. | Revenue Recognition |
4. | Revenue Recognition (Continued) |
5. | Accounts Receivable |
6. | Inventories |
7. | Property and Equipment |
Years | ||
Office equipment |
5 - 7 | |
Office furniture |
7 | |
Medical equipment |
7 |
8. | Income Taxes |
9. | Use of Estimates |
10. | Fair Value of Financial Instruments |
11. | Significant Accounting Standards Applicable In A Future Year |
11. | Significant Accounting Standards Applicable In A Future Year (Continued) |
January 1, 2020 Through November 20, 2020 |
January 1, 2019 Through December 31, 2019 |
|||||||
Revenue recognized over-time |
||||||||
Psychiatric and mental health services |
$ | 7,992,540 | $ | 8,447,041 | ||||
Billing services |
319,891 | 307,910 | ||||||
|
|
|
|
|||||
8,312,431 | 8,754,951 | |||||||
Revenue recognized at a point-in-time |
||||||||
Retail pharmacy services |
3,529,788 | 3,773,513 | ||||||
|
|
|
|
|||||
$ | 11,842,219 | $ | 12,528,464 | |||||
|
|
|
|
January 1, 2020 through November 20, 2020 |
January 1, 2019 through December 31, 2019 |
|||||||
Third-party payors |
$ | 9,815,871 | $ | 10,320,044 | ||||
Patient self-pays |
1,706,457 | 1,900,510 | ||||||
Billing service customers |
319,891 | 307,910 | ||||||
|
|
|
|
|||||
$ | 11,842,219 | $ | 12,528,464 | |||||
|
|
|
|
Net Receivables | ||||||||
November 20, 2020 |
December 31, 2019 |
|||||||
Commercial and other third party payors |
90.6 | % | 90.3 | % | ||||
Patient self-pays |
2.8 | % | 2.8 | % | ||||
Billing service customers |
6.6 | % | 6.9 | % | ||||
|
|
|
|
|||||
100.0 | % | 100.0 | % | |||||
|
|
|
|
|||||
Revenue | ||||||||
January 1, 2020 through November 20, 2020 |
January 1, 2019 through December 31, 2019 |
|||||||
Commercial and other third party payors |
82.9 | % | 82.3 | % | ||||
Patient self-pays |
14.4 | % | 15.2 | % | ||||
Billing service customers |
2.7 | % | 2.5 | % | ||||
|
|
|
|
|||||
100.0 | % | 100.0 | % | |||||
|
|
|
|
December 31, 2020 |
December 31, 2019 |
|||||||
Office equipment |
$ | 103,088 | $ | 103,088 | ||||
Office furniture |
12,010 | 3,364 | ||||||
Medical equipment |
1,839 | 1,839 | ||||||
|
|
|
|
|||||
116,937 | 108,291 | |||||||
Less accumulated depreciation |
64,369 | 46,479 | ||||||
|
|
|
|
|||||
$ | 52,568 | $ | 61,812 | |||||
|
|
|
|
1. | Due From Related Parties |
2. | Membership Redemptions and Due to Member |
2. | Membership Redemptions and Due to Member (Continued) |
3. | Payments To Related Parties |
Year |
Related Party |
Third Party |
Total | |||||||||
2020 |
$ | 4,900 | $ | 17,250 | $ | 22,150 | ||||||
2021 |
58,800 | 206,998 | 265,798 | |||||||||
2022 |
— | 28,764 | 28,764 | |||||||||
2023 |
— | 10,776 | 10,776 | |||||||||
2024 |
— | 10,776 | 10,776 | |||||||||
2025 |
— | 9,878 | 9,878 | |||||||||
|
|
|
|
|
|
|||||||
$ | 63,700 | $ | 284,442 | $ | 348,142 | |||||||
|
|
|
|
|
|
1. | Uninsured Cash |
2. | Contingencies |
3. | COVID-19 |
3. | COVID-19 (Continued) |
2020 |
2019 |
|||||||
ASSETS |
||||||||
Current Assets |
||||||||
Cash and cash equivalents |
$ | 1,517,400 | $ | 290,185 | ||||
Accounts receivable, net |
4,876,281 | 3,668,418 | ||||||
Inventory |
— | 42,306 | ||||||
Prepaid expenses and other current assets |
822,669 | 773,286 | ||||||
|
|
|
|
|||||
Total current assets |
7,216,350 | 4,774,195 | ||||||
Noncurrent Assets |
||||||||
Property and equipment, net |
2,353,205 | 1,249,719 | ||||||
Software and website development costs, net |
4,902,369 | 4,969,846 | ||||||
Operating lease right of use asset |
4,829,292 | 5,695,961 | ||||||
Finance lease right of use asset |
2,966,970 | 3,726,657 | ||||||
Other noncurrent assets |
1,050,858 | 1,063,556 | ||||||
|
|
|
|
|||||
Total noncurrent assets |
16,102,694 | 16,705,739 | ||||||
|
|
|
|
|||||
Total assets |
$ | 23,319,044 | $ | 21,479,934 | ||||
|
|
|
|
|||||
LIABILITIES, MEZZANINE EQUITY, AND MEMBERS’ INTERESTS |
||||||||
Current Liabilities |
||||||||
Accounts payable |
$ | 2,827,911 | $ | 2,906,247 | ||||
Accrued expenses |
977,446 | 953,492 | ||||||
Deferred revenue |
45,644 | 82,463 | ||||||
Line of credit |
7,253,325 | — | ||||||
Convertible note payable to related party, net |
10,000,000 | — | ||||||
Term credit facility, net of debt issuance costs and debt discount |
9,911,193 | — | ||||||
Interest payable, current portion |
7,221,990 | — | ||||||
Operating lease liability, current portion |
1,041,754 | 911,424 | ||||||
Paycheck protection program loan |
1,798,733 | — | ||||||
Finance lease liability, current portion |
1,821,725 | 1,875,630 | ||||||
|
|
|
|
|||||
Total current liabilities |
42,899,721 | 6,729,256 | ||||||
Operating lease liability, net of current portion |
4,492,728 | 5,525,947 | ||||||
Finance lease liability, net of current portion |
1,073,410 | 1,855,306 | ||||||
Paycheck protection program loan |
899,367 | — | ||||||
Line of credit |
— | 9,699,505 | ||||||
Convertible note payable to related party, net of debt issuance costs and debt discount, non-current |
— | 9,666,462 | ||||||
Convertible note payable, non-current, net |
200,000 | 200,000 | ||||||
Dividends payable – Series A preferred units |
6,631,233 | 5,431,233 | ||||||
Interest payable, net of current portion |
— | 3,955,028 | ||||||
|
|
|
|
|||||
Total noncurrent liabilities |
13,296,738 | 36,333,481 | ||||||
|
|
|
|
|||||
Total liabilities |
56,196,459 | 43,062,737 | ||||||
Mezzanine Equity – Redeemable Series A Preferred Units |
||||||||
Series A preferred units, 3,000,000 issued and outstanding at December 31, 2020 and 2019 (Aggregate liquidation preference $15,000,000) |
15,000,000 | 15,000,000 | ||||||
Members’ Interests |
||||||||
Common units, 5,034,700 issued and outstanding at December 31, 2020 and 2019 |
11,593,120 | 10,149,803 | ||||||
Loans to officers |
(450,000 | ) | (450,000 | ) | ||||
Accumulated deficit |
(59,020,535 | ) | (46,282,606 | ) | ||||
|
|
|
|
|||||
Total members’ interests |
(47,877,415 | ) | (36,582,803 | ) | ||||
|
|
|
|
|||||
Total liabilities, mezzanine equity, and members’ interests |
$ | 23,319,044 | $ | 21,479,934 | ||||
|
|
|
|
2020 |
2019 |
|||||||
Net Sales |
$ | 28,089,434 | $ | 30,129,803 | ||||
Cost Of Sales |
14,342,965 | 16,868,951 | ||||||
|
|
|
|
|||||
Gross Profit |
13,746,469 | 13,260,852 | ||||||
Operating Expenses |
||||||||
Depreciation and amortization |
4,041,318 | 3,155,410 | ||||||
Salaries and wages |
5,901,060 | 5,919,129 | ||||||
General and administrative expenses |
9,188,703 | 9,582,808 | ||||||
|
|
|
|
|||||
Total operating expenses |
19,131,081 | 18,657,347 | ||||||
|
|
|
|
|||||
Loss From Operations |
(5,384,612 | ) | (5,396,495 | ) | ||||
Other Income (Expense) |
||||||||
Interest expense |
(6,638,524 | ) | (4,777,972 | ) | ||||
Other income (expense), net |
62,872 | 79,632 | ||||||
Rental income |
422,335 | 339,895 | ||||||
|
|
|
|
|||||
Total other expense, net |
(6,153,317 | ) | (4,358,445 | ) | ||||
|
|
|
|
|||||
Net Loss |
($ | 11,537,929 | ) | ($ | 9,754,940 | ) | ||
|
|
|
|
|||||
Net Loss Per Common Unit |
($2.29 | ) | ($1.94 | ) | ||||
Weighted Average Units Outstanding – Basic And Diluted |
5,034,700 | 5,034,700 |
Redeemable Series A Preferred Units |
Members’ |
Loans to Officer |
Accumulated Members’ Deficit |
Total Members’ Interests |
||||||||||||||||||||||||
Units |
Amount |
Units |
Amount |
|||||||||||||||||||||||||
Mezzanine Equity and Members’ Interests, December 31, 2018 |
3,000,000 | $ | 15,000,000 | 5,034,700 | $ | 10,057,771 | ($ | 450,000 | ) | ($35,327,666 | ) | ($25,719,895 | ) | |||||||||||||||
Net loss |
— | — | — | — | — | (9,754,940 | ) | (9,754,940 | ) | |||||||||||||||||||
Unit-based compensation |
— | — | — | 92,032 | — | — | 92,032 | |||||||||||||||||||||
Accrued dividends |
— | — | — | — | — | (1,200,000 | ) | (1,200,000 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Mezzanine Equity and Members’ Interests, December 31, 2019 |
3,000,000 | $ | 15,000,000 | 5,034,700 | 10,149,803 | ($ | 450,000 | ) | ($46,282,606 | ) | ($36,582,803 | ) | ||||||||||||||||
Net loss |
— | — | — | — | — | (11,537,929 | ) | (11,537,929 | ) | |||||||||||||||||||
Issuance of warrant to purchase common units |
— | — | — | 1,304,013 | — | — | 1,304,013 | |||||||||||||||||||||
Unit-based compensation |
— | — | — | 139,304 | — | — | 139,304 | |||||||||||||||||||||
Accrued dividends |
— | — | — | — | — | (1,200,000 | ) | (1,200,000 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Mezzanine Equity and Members’ Interests, December 31, 2020 |
3,000,000 | $ | 15,000,000 | 5,034,700 | $ | 11,593,120 | ($ | 450,000 | ) | ($59,020,535 | ) | ($47,877,415 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020 |
2019 |
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES |
||||||||
Net loss |
($ | 11,537,929 | ) | ($ | 9,754,940 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: |
||||||||
Employee unit-based compensation |
139,304 | 92,032 | ||||||
Paid in kind interest |
994,425 | — | ||||||
Amortization of debt discount and issuance costs |
815,690 | 709,610 | ||||||
Forgiveness on paycheck protection program loan |
(202,176 | ) | — | |||||
Depreciation and amortization |
4,041,318 | 3,155,410 | ||||||
Noncash lease expense |
866,669 | 899,673 | ||||||
Gain from fixed asset reimbursement |
— | (79,632 | ) | |||||
Bad debt expense |
138,611 | 360,205 | ||||||
Changes in operating assets and liabilities: |
||||||||
(Increase) decrease in assets: |
||||||||
Accounts receivable |
(1,346,474 | ) | (47,392 | ) | ||||
Inventory |
42,306 | — | ||||||
Prepaid expenses and other current assets |
(49,383 | ) | (88,864 | ) | ||||
Other noncurrent assets |
12,698 | (217,827 | ) | |||||
Increase (decrease) in liabilities: |
||||||||
Accounts payable |
(55,457 | ) | 4,798 | |||||
Accrued expenses |
23,954 | 66,617 | ||||||
Deferred revenues |
(36,819 | ) | (8,777 | ) | ||||
Operating lease liability |
(902,889 | ) | (562,489 | ) | ||||
Interest payable |
3,266,962 | 3,070,017 | ||||||
|
|
|
|
|||||
Net cash used in operating activities |
(3,789,190 | ) | (2,401,557 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES |
||||||||
Purchase of property and equipment |
(2,687,034 | ) | (1,694,895 | ) | ||||
|
|
|
|
|||||
Net cash used in investing activities |
(2,687,034 | ) | (1,694,895 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES |
||||||||
Payments of finance lease obligations |
(2,489,286 | ) | (2,416,107 | ) | ||||
Net borrowings (payments) on line of credit |
(2,446,180 | ) | 939,505 | |||||
Paycheck protection program loan |
2,900,276 | 0 | ||||||
Borrowings on note payable |
9,738,629 | 5,000,000 | ||||||
|
|
|
|
|||||
Net cash provided by financing activities |
7,703,439 | 3,523,398 | ||||||
|
|
|
|
|||||
NET DECREASE IN CASH AND CASH EQUIVALENTS |
$ | 1,227,215 | ($ | 573,054 | ) | |||
|
|
|
|
CASH AND CASH EQUIVALENTS |
$ | 290,185 | $ | 863,262 | ||||
CASH AND CASH EQUIVALENTS |
$ | 1,517,400 | $ | 290,185 | ||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION |
||||||||
Interest paid |
$ | 1,580,180 | $ | 2,194,234 | ||||
Taxes paid |
$ | 201,336 | $ | 209,616 | ||||
SUPPLEMENTAL DISCLOSURE OF NONCASH ACTIVITIES |
||||||||
Debt discount related to warrants |
$ | 1,304,013 | $ | — | ||||
Preferred dividends declared and accrued |
$ | 1,200,000 | $ | 1,200,000 |
1. |
ORGANIZATION AND NATURE OF OPERATIONS |
2. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
2020 |
2019 |
|||||||
Unit options outstanding |
1,933,303 | 1,941,150 | ||||||
Warrants |
741,135 | 526,312 | ||||||
|
|
|
|
|||||
Total |
2,674,438 | 2,467,462 |
• | Level 1 inputs: |
• | Level 2 inputs: |
• | Level 3 inputs: |
1. | Identification of the contract with a customer |
2. | Identification of the performance obligations in the contract |
3. | Determination of the transaction price |
4. | Allocation of the transaction price to the performance obligations in the contract |
5. | Recognition of revenue when, or as, the Company satisfies a performance obligation |
1. | The Company elected to not adjust the promised amount of consideration for the effect of a significant financing component if it expects, at contract inception, that the period between the Company’s transfer of a promised good or service to a customer and the customer’s payment for that good or service will be one year or less. |
2. | The Company is excluding from its transaction price all sales and similar taxes collected from its customers. |
3. | The Company elected to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less. |
4. | The Company elected to account for shipping and handling activities that occur after control of the related good transfers as fulfillment activities instead of assessing such activities as performance obligations. |
5. | The portfolio approach has been elected by the Company as it expects any effects of adoption would not be materially different in application at the portfolio level compared with the application at an individual contract level. |
6. | The Company elected the “right to invoice” expedient which states that for performance obligations satisfied over time, if an entity has a right to consideration from a customer in an amount that corresponds directly with the value to the customer of the entity’s performance completed to date, the entity may recognize revenue in the amount to which the entity has a right to invoice. |
7. | The Company elected not to disclose information about its remaining performance obligations for any contract that has an original expected duration of one year or less. |
8. | The Company elected not to disclose information about its remaining performance obligations when it recognizes revenue from the satisfaction of performance obligations in accordance with the “right to invoice” practical expedient. |
9. | The Company elected all transition-related practical expedients available under the full retrospective transition method of adoption. |
3. |
PROPERTY AND EQUIPMENT, NET |
Useful Life (Years) |
2020 |
2019 |
||||||||||
Furniture and fixtures |
7 | $ | 480,515 | $ | 470,945 | |||||||
Computer and related equipment |
5 | 3,490,045 | 2,000,103 | |||||||||
Vehicle |
5 | 10,500 | — | |||||||||
|
|
|
|
|||||||||
3,981,060 | 2,471,048 | |||||||||||
Less accumulated depreciation |
(1,627,855 | ) | (1,221,329 | ) | ||||||||
|
|
|
|
|||||||||
Property and equipment, net |
$ | 2,353,205 | $ | 1,249,719 | ||||||||
|
|
|
|
4. |
SOFTWARE AND WEBSITE DEVELOPMENT COSTS, NET |
Useful Life (Years) |
2020 |
2019 |
||||||||||
IT Infrastructure – software development costs |
5 | $ | 5,335,022 | $ | 3,286,318 | |||||||
Software and website development costs |
3 | 1,026,913 | 1,037,855 | |||||||||
Work in Progress Assets |
— | 272,230 | 654,670 | |||||||||
|
|
|
|
|||||||||
6,634,165 | 9,969,827 | |||||||||||
Less accumulated depreciation |
(1,731,796 | ) | (4,999,981 | ) | ||||||||
|
|
|
|
|||||||||
Software and website development costs, net |
$ | 4,902,369 | $ | 4,969,846 | ||||||||
|
|
|
|
5. |
LOANS TO OFFICERS |
6. |
ACCRUED EXPENSES |
2020 |
2019 |
|||||||
Payroll and related expenses |
$ | 231,576 | $ | 385,201 | ||||
Other (including accrued outsourced labor) |
745,870 | 568,291 | ||||||
|
|
|
|
|||||
$ | 977,446 | $ | 953,492 | |||||
|
|
|
|
7. |
RELATED PARTY TRANSACTIONS |
8. |
MEMBERS’ INTERESTS |
9. |
OPTIONS TO PURCHASE MEMBER UNIT |
Number of Shares |
Weighted-Average Exercise Price |
|||||||
Outstanding, December 31, 2018 |
1,941,150 | 5.70 | ||||||
Granted |
— | — | ||||||
Exercised |
— | — | ||||||
Canceled and forfeited |
— | — | ||||||
|
|
|
|
|||||
Outstanding, December 31, 2019 |
1,941,150 | 5.70 | ||||||
Granted |
192,153 | 6.99 | ||||||
Exercised |
— | — | ||||||
Canceled and forfeited |
(200,000 | ) | 12.50 | |||||
|
|
|
|
|||||
Outstanding, December 31, 2020 |
1,933,303 | 4.91 | ||||||
Exercisable, December 31, 2019 |
1,799,255 | 5.19 | ||||||
Exercisable, December 31, 2020 |
1,725,650 | 4.51 |
Options Outstanding |
Options Exercisable | |||||
Exercise Prices |
Number Outstanding |
Weighted-Average Remaining Contractual Life (Years) |
Number Exercisable | |||
0.23 | 155,100 | 4.48 | 155,100 | |||
1.55 | 336,050 | 4.48 | 336,050 | |||
5.00 | 1,075,000 | 4.53 | 1,075,000 | |||
6.99 | 242,153 | 9.50 | 67,885 | |||
15.00 | 125,000 | 1.50 | 91,615 | |||
|
| |||||
1,933,303 | 1,725,650 |
Options Outstanding |
Options Exercisable | |||||
Exercise Prices |
Number Outstanding |
Weighted-Average Remaining Contractual Life (Years) |
Number Exercisable | |||
0.23 | 155,100 | 5.48 | 155,100 | |||
1.55 | 336,050 | 5.48 | 336,050 | |||
5.00 | 1,075,000 | 5.53 | 1,075,000 | |||
12.50 | 200,000 | 7.11 | 116,279 | |||
15.00 | 175,000 | 8.00 | 116,826 | |||
|
| |||||
1,941,150 | 1,799,255 |
Year Ended December 31, 2020 | ||
Expected term (years) |
6.25 | |
Volatility |
34.00% | |
Risk-free interest rate |
2.38 – 2.47% | |
Dividend yield |
— | |
Weighted-average fair value |
$2.49 |
10. |
PERFORMANCE UNIT PLAN |
11. |
EMPLOYEE BENEFIT PLAN |
12. |
REVOLVING LINE OF CREDIT |
13. |
CONVERTIBLE NOTES PAYABLE TO RELATED PARTY |
14. |
CONVERTIBLE NOTES PAYABLE |
15. |
DEBT |
Expected term (in years) |
3 years | |||
Risk-free interest rate |
1.48 | % | ||
Volatility |
33.07 | % |
16. |
OPERATING AND FINANCE LEASE RIGHT OF USE ASSETS |
December 31, 2020 |
December 31, 2019 |
|||||||
Amortization of finance ROU assets |
$ | 1,857,607 | $ | 2,322,673 | ||||
Interest on finance lease liabilities |
281,174 | 284,096 | ||||||
|
|
|
|
|||||
Finance lease expense |
$ | 2,138,781 | $ | 2,606,769 | ||||
Operating lease expense |
1,315,440 | 1,340,321 | ||||||
Variable lease expense |
0 | 1,507 | ||||||
Sublease income |
(422,335 | ) | (339,895 | ) | ||||
|
|
|
|
|||||
Total lease expense |
$ | 3,031,886 | $ | 3,608,702 |
December 31, 2020 |
December 31, 2019 |
|||||||
Operating cash flows from operating leases |
$ | 1,315,440 | $ | 1,000,802 | ||||
Operating cash flows from finance leases |
281,174 | 284,096 | ||||||
Financing cash flows from finance leases |
2,623,157 | 2,416,108 | ||||||
|
|
|
|
|||||
Cash paid for amounts included in the measurement of lease liabilities |
$ | 4,219,771 | $ | 3,701,006 | ||||
|
|
|
|
December 31, 2020 |
December 31, 2019 |
|||||||
Weighted average remaining lease term (months) |
||||||||
Operating leases |
74 | 79 | ||||||
Finance leases |
20 | 23 | ||||||
Weighted average discount rate |
||||||||
Operating leases |
6.7 | % | 6.7 | % | ||||
Finance leases |
8.1 | % | 9.8 | % |
Operating leases |
Finance leases |
Total |
||||||||||
Years Ending December 31 |
||||||||||||
2021 |
$ | 1,381,229 | $ | 1,965,509 | $ | 3,346,738 | ||||||
2022 |
1,374,443 | 886,663 | 2,261,106 | |||||||||
2023 |
1,037,855 | 218,119 | 1,255,974 | |||||||||
Thereafter |
2,950,392 | 0 | 2,950,392 | |||||||||
|
|
|
|
|
|
|||||||
Undiscounted cash flows |
6,743,919 | 3,070,292 | 9,814,211 | |||||||||
Less: imputed interest |
(1,209,437 | ) | (175,157 | ) | (1,384,594 | ) | ||||||
|
|
|
|
|
|
|||||||
Total |
$ | 5,534,482 | $ | 2,895,135 | $ | 8,429,617 | ||||||
|
|
|
|
|
|
|||||||
Reconciliation to lease liabilities: |
||||||||||||
Lease liabilities – current |
$ | 1,041,754 | $ | 1,821,725 | $ | 2,863479 | ||||||
Lease liabilities – non-current |
4,492,728 | 1,073,410 | 5,566,138 | |||||||||
|
|
|
|
|
|
|||||||
Total lease liabilities |
$ | 5,534,482 | $ | 2,895,135 | $ | 8,429,619 | ||||||
|
|
|
|
|
|
17. |
COMMITMENTS AND CONTINGENCIES |
18. |
SUBSEQUENT EVENTS |
June 8, 2021 |
December 31, 2020 |
|||||||
ASSETS |
||||||||
Current Assets |
||||||||
Cash and cash equivalents |
$ | 3,735,307 | $ | 1,517,400 | ||||
Accounts receivable, net |
4,592,383 | 4,876,281 | ||||||
Prepaid expenses and other current assets |
959,879 | 822,669 | ||||||
|
|
|
|
|||||
Total current assets |
9,287,569 | 7,216,350 | ||||||
Noncurrent Assets |
||||||||
Property and equipment, net |
1,944,666 | 2,353,205 | ||||||
Software and website development costs, net |
4,601,375 | 4,902,369 | ||||||
Operating lease right of use asset |
4,349,873 | 4,829,292 | ||||||
Finance lease right of use asset |
3,855,292 | 2,966,970 | ||||||
Other noncurrent assets |
1,046,395 | 1,050,858 | ||||||
|
|
|
|
|||||
Total noncurrent assets |
15,797,601 | 16,102,694 | ||||||
|
|
|
|
|||||
Total assets |
$ | 25,085,170 | $ | 23,319,044 | ||||
|
|
|
|
|||||
LIABILITIES, MEZZANINE EQUITY, AND MEMBERS’ INTERESTS |
| |||||||
Current Liabilities |
||||||||
Accounts payable |
$ | 3,015,684 | $ | 2,827,911 | ||||
Accrued expenses |
903,357 | 977,446 | ||||||
Deferred revenue |
16,474 | 45,644 | ||||||
Line of credit |
7,253,325 | 7,253,325 | ||||||
Convertible note payable to related party, net |
10,000,000 | 10,000,000 | ||||||
Term credit facility, net of debt issuance costs and debt discount |
13,709,341 | 9,911,193 | ||||||
Interest payable, current portion |
7,611,700 | 7,221,990 | ||||||
Operating lease liability, current portion |
1,041,754 | 1,041,754 | ||||||
Paycheck protection program loan |
2,394,419 | 1,798,733 | ||||||
Finance lease liability, current portion |
2,358,123 | 1,821,725 | ||||||
|
|
|
|
|||||
Total current liabilities |
48,304,177 | 42,899,721 | ||||||
Operating lease liability, net of current portion |
3,993,421 | 4,492,728 | ||||||
Finance lease liability, net of current portion |
1,394,050 | 1,073,410 | ||||||
Paycheck protection program loan |
303,681 | 899,367 | ||||||
Convertible note payable, non-current, net |
200,000 | 200,000 | ||||||
Dividends payable – Series A preferred units |
7,131,233 | 6,631,233 | ||||||
|
|
|
|
|||||
Total noncurrent liabilities |
13,022,385 | 13,296,738 | ||||||
|
|
|
|
|||||
Total liabilities |
$ | 61,326,562 | $ | 56,196,459 | ||||
|
|
|
|
|||||
Mezzanine Equity – Redeemable Series A Preferred Units |
|
|||||||
Series A preferred units, 3,000,000 issued and outstanding at June 8, 2021 and December 31, 2020 (Aggregate liquidation preference $22,131,233 and $21,631,233 at June 8, 2021 and December 31, 2020 respectively) |
15,000,000 | 15,000,000 | ||||||
|
|
|
|
|||||
Members’ Interests |
||||||||
Common units, 5,034,700 issued and outstanding at June 8, 2021 and December 31, 2020 |
11,641,012 | 11,593,120 | ||||||
Loans to officers |
— | (450,000 | ) | |||||
Accumulated deficit |
(62,882,404 | ) | (59,020,535 | ) | ||||
|
|
|
|
|||||
Total members’ interests |
($ | 51,241,392 | ) | ($ | 47,877,415 | ) | ||
|
|
|
|
|||||
Total liabilities, mezzanine equity, and members’ interests |
$ | 25,085,170 | $ | 23,319,044 | ||||
|
|
|
|
April 1, 2021 to June 8, 2021 |
April 1, 2020 to June 30, 2020 |
January 1, 2021 to June 8, 2021 |
January 1, 2020 to June 30, 2020 |
|||||||||||||
Net Sales |
$ | 5,394,615 | $ | 6,504,089 | $ | 13,347,488 | $ | 13,275,361 | ||||||||
Cost Of Sales |
2,504,907 | 3,356,364 | 5,884,520 | 7,089,465 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Gross Profit |
2,889,708 | 3,147,725 | 7,462,968 | 6,185,896 | ||||||||||||
Depreciation and amortization |
||||||||||||||||
Operating Expenses |
||||||||||||||||
Depreciation and amortization |
835,102 | 726,647 | 2,144,136 | 1,705,021 | ||||||||||||
Salaries and wages |
987,213 | 1,433,771 | 2,697,534 | 2,756,157 | ||||||||||||
General and administrative expenses |
1,841,163 | 1,742,099 | 4,388,010 | 3,889,839 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total operating expenses |
3,663,478 | 3,902,517 | 9,229,680 | 8,351,017 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Loss From Operations |
(773,770 | ) | (754,792 | ) | (1,766,712 | ) | (2,165,121 | ) | ||||||||
Other Income (Expense) |
||||||||||||||||
Interest expense |
(739,152 | ) | (1,568,148 | ) | (1,644,245 | ) | (5,164,483 | ) | ||||||||
Other income (expense), net |
(31,377 | ) | (37,251 | ) | 251,041 | (91,204 | ) | |||||||||
Rental income |
144,192 | 111,138 | 248,046 | 214,276 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total other expense, net |
(626,337 | ) | (1,494,261 | ) | (1,145,158 | ) | (5,041,411 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net Income (Loss) |
($ | 1,400,107 | ) | ($ | 2,249,053 | ) | ($ | 2,911,870 | ) | ($ | 7,206,532 | ) | ||||
|
|
|
|
|
|
|
|
|||||||||
Net Loss Per Common Unit |
($ | 0.28 | ) | ($ | 0.45 | ) | ($ | 0.58 | ) | ($ | 1.43 | ) | ||||
Weighted Average Units Outstanding – Basic And Diluted |
5,034,700 | 5,034,700 | 5,034,700 | 5,034,700 |
Redeemable Series A Preferred Units |
Members’ |
Loans to Officer |
Accumulated Members’ Deficit |
Total Members’ Interests |
||||||||||||||||||||||||||||
Units |
Amount |
Units |
Amount |
|||||||||||||||||||||||||||||
Mezzanine Equity and Members’ Interests, December 31, 2019 |
3,000,000 | $ | 15,000,000 | 5,034,700 | $ | 10,149,803 | ($ | 450,000 | ) | ($ | 46,282,606 | ) | ($ | 36,582,803 | ) | |||||||||||||||||
Net loss |
— | — | — | — | — | (4,957,480 | ) | (4,957,480 | ) | |||||||||||||||||||||||
Issuance of warrant to purchase common units |
— | — | — | 1,304,013 | — | — | 1,304,013 | |||||||||||||||||||||||||
Unit-based compensation |
— | — | — | 8,047 | — | — | 8,047 | |||||||||||||||||||||||||
Accrued dividends |
— | — | — | — | — | (300,000 | ) | (300,000 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Mezzanine Equity and Members’ Interests, March 31, 2020 |
3,000,000 | 15,000,000 | 5,034,700 | 11,461,863 | (450,000 | ) | (51,540,086 | ) | (40,528,223 | ) | ||||||||||||||||||||||
Net loss |
— | — | — | — | — | (2,249,053 | ) | (2,249,053 | ) | |||||||||||||||||||||||
Accrued dividends |
— | — | — | — | — | (300,000 | ) | (300,000 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Mezzanine Equity and Members’ Interests, June 30, 2020 |
3,000,000 | $ | 15,000,000 | 5,034,700 | $ | 11,461,863 | ($ | 450,000 | ) | ($ | 54,089,139 | ) | ($ | 43,085,323 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Mezzanine Equity and Members’ Interests, December 31, 2020 |
3,000,000 | $ | 15,000,000 | 5,034,700 | $ | 11,593,120 | ($ | 450,000 | ) | ($ | 59,020,535 | ) | ($ | 47,877,415 | ) | |||||||||||||||||
Net loss |
— | — | — | — | — | (1,511,762 | ) | (1,511,762 | ) | |||||||||||||||||||||||
Unit-based compensation |
— | — | — | 47,892 | — | — | 47,892 | |||||||||||||||||||||||||
Distributions to members |
— | — | — | — | 450,000 | (450,000 | ) | — | ||||||||||||||||||||||||
Accrued dividends |
— | — | — | — | — | (300,000 | ) | (300,000 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Mezzanine Equity and Members’ Interests, March 31, 2021 |
3,000,000 | 15,000,000 | 5,034,700 | 11,641,012 | $ | — | (61,282,297 | ) | (49,641,285 | ) | ||||||||||||||||||||||
Net loss |
— | — | — | — | — | (1,400,107 | ) | (1,400,107 | ) | |||||||||||||||||||||||
Accrued dividends |
— | — | — | — | — | (200,000 | ) | (200,000 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Mezzanine Equity and Members’ Interests, June 8, 2021 |
3,000,000 | $ | 15,000,000 | 5,034,700 | $ | 11,641,012 | $ | — | ($ | 62,882,404 | ) | ($ | 51,241,392 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January 1, 2021 to June 8, 2021 |
January 1, 2020 to June 30, 2020 |
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES |
||||||||
Net loss |
($ | 2,911,870 | ) | ($ | 7,206,532 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: |
||||||||
Employee unit-based compensation |
47,892 | 8,047 | ||||||
Paid in kind interest |
474,366 | 451,902 | ||||||
Amortization of debt discount and issuance costs |
323,781 | 1,027,970 | ||||||
Depreciation and amortization |
2,144,136 | 1,705,021 | ||||||
Noncash lease expense |
(19,887 | ) | 9,928 | |||||
Bad debt expense |
(335,681 | ) | — | |||||
Changes in operating assets and liabilities: |
||||||||
(Increase) decrease in assets: |
||||||||
Accounts receivable |
578,259 | (487,517 | ) | |||||
Prepaid expenses and other current assets |
463,535 | (1,058,622 | ) | |||||
Other noncurrent assets |
8,528 | 12,629 | ||||||
Increase (decrease) in liabilities: |
||||||||
Accounts payable |
(163,804 | ) | (734,936 | ) | ||||
Accrued expenses |
(11,520 | ) | (271,210 | ) | ||||
Deferred revenues |
(19,500 | ) | 67,906 | |||||
Operating lease liability |
— | — | ||||||
Interest payable |
403,151 | 2,988,221 | ||||||
|
|
|
|
|||||
Net cash used in operating activities |
981,386 | (3,487,193 | ) | |||||
CASH FLOWS FROM INVESTING ACTIVITIES |
||||||||
Purchase of property and equipment |
(285,310 | ) | (1,254,563 | ) | ||||
|
|
|
|
|||||
Net cash used in investing activities |
(285,310 | ) | (1,254,563 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES |
||||||||
Net payments of finance lease obligations |
(1,428,169 | ) | (1,334,369 | ) | ||||
Net borrowings (payments) on line of credit |
0 | (2,446,180 | ) | |||||
Borrowings on note payable, net |
2,950,000 | 10,000,000 | ||||||
|
|
|
|
|||||
Net cash provided by financing activities |
1,521,831 | 6,219,451 | ||||||
|
|
|
|
|||||
NET DECREASE IN CASH AND CASH EQUIVALENTS |
$ | 2,217,907 | $ | 1,477,695 | ||||
|
|
|
|
|||||
CASH AND CASH EQUIVALENTS – beginning |
$ | 1,517,400 | $ | 290,185 | ||||
CASH AND CASH EQUIVALENTS – end |
$ | 3,735,307 | $ | 1,767,880 | ||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION |
||||||||
Interest paid |
$ | 545,603 | $ | 2,515,046 | ||||
Taxes paid |
$ | 104,446 | $ | 91,203 | ||||
SUPPLEMENTAL DISCLOSURE OF NONCASH ACTIVITIES |
||||||||
Debt discount related to warrants |
$ | 203,454 | $ | 203,454 | ||||
Preferred dividends declared and accrued |
$ | 500,000 | $ | 600,000 | ||||
Distribution to members |
$ | 450,000 | $ | — |
1. ORGANIZATION |
AND NATURE OF OPERATIONS |
2. SUMMARY |
OF SIGNIFICANT ACCOUNTING POLICIES |
June 8, 2021 |
December 31, 2020 |
|||||||
Unit options outstanding |
1,808,303 | 1,933,303 | ||||||
Warrants |
741,135 | 741,135 | ||||||
|
|
|
|
|||||
Total |
2,549,438 | 2,674,438 | ||||||
|
|
|
|
• | Level 1 inputs: |
• | Level 2 inputs: |
• | Level 3 inputs: |
1. | Identification of the contract with a customer |
2. | Identification of the performance obligations in the contract |
3. | Determination of the transaction price |
4. | Allocation of the transaction price to the performance obligations in the contract |
5. | Recognition of revenue when, or as, the Company satisfies a performance obligation |
1. | The Company is excluding from its transaction price all sales and similar taxes collected from its customers. |
2. | The Company elected to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less. |
3. | The Company elected to account for shipping and handling activities that occur after control of the related good transfers as fulfillment activities instead of assessing such activities as performance obligations. |
4. | The portfolio approach has been elected by the Company as it expects any effects of adoption would not be materially different in application at the portfolio level compared with the application at an individual contract level. |
5. | The Company elected the “right to invoice” expedient which states that for performance obligations satisfied over time, if an entity has a right to consideration from a customer in an amount that corresponds directly with the value to the customer of the entity’s performance completed to date, the entity may recognize revenue in the amount to which the entity has a right to invoice. |
6. | The Company elected not to disclose information about its remaining performance obligations for any contract that has an original expected duration of one year or less. |
7. | The Company elected not to disclose information about its remaining performance obligations when it recognizes revenue from the satisfaction of performance obligations in accordance with the “right to invoice” practical expedient. |
8. | The Company elected all transition-related practical expedients available under the full retrospective transition method of adoption. |
3. |
PROPERTY AND EQUIPMENT, NET |
Useful Life (Years) |
June 8, 2021 |
December,31 2020 |
||||||||||
Furniture and fixtures |
7 | $ | 480,515 | $ | 480,515 | |||||||
Computer and related equipment |
5 | 3,266,897 | 3,490,045 | |||||||||
Vehicle |
5 | 10,500 | 10,500 | |||||||||
|
|
|
|
|||||||||
3,757,912 | 3,981,060 | |||||||||||
Less accumulated depreciation |
(1,813,246 | ) | (1,627,855 | ) | ||||||||
|
|
|
|
|||||||||
Property and equipment, net |
$ | 1,944,666 | $ | 2,353,205 | ||||||||
|
|
|
|
4. |
SOFTWARE AND WEBSITE DEVELOPMENT COSTS, NET |
Useful Life (Years) |
June 8, 2021 |
December,31 2020 |
||||||||||
IT Infrastructure—software development costs |
5 | $ | 5,335,022 | $ | 5,335,022 | |||||||
Software and website development costs |
3 | 1,026,913 | 1,026,913 | |||||||||
Work in Progress Assets |
— | 414,530 | 272,230 | |||||||||
|
|
|
|
|||||||||
6,776,465 | 6,634,165 | |||||||||||
Less accumulated depreciation |
(2,175,090 | ) | (1,731,796 | ) | ||||||||
|
|
|
|
|||||||||
Software and website development costs, net |
$ | 4,601,375 | $ | 4,902,369 | ||||||||
|
|
|
|
5. |
LOANS TO OFFICERS |
6. |
RELATED PARTY TRANSACTIONS |
7. |
MEMBERS’ INTERESTS |
8. |
OPTIONS TO PURCHASE MEMBER UNIT |
Number of Shares |
Weighted-Average Exercise Price |
|||||||
Outstanding, January 1, 2020 |
1,941,150 | 5.70 | ||||||
Granted |
132,153 | 6.99 | ||||||
Exercised |
— | — | ||||||
Canceled and forfeited |
— | — | ||||||
|
|
|
|
|||||
Outstanding, June 30, 2020 |
2,073,303 | 5.78 | ||||||
|
|
|
|
|||||
Outstanding, January 1, 2021 |
1,933,303 | 4.91 | ||||||
Granted |
— | — | ||||||
Exercised |
— | — | ||||||
Canceled and forfeited |
(125,000 | ) | 15.00 | |||||
|
|
|
|
|||||
Outstanding, June 30, 2021 |
1,808,303 | 4.21 | ||||||
|
|
|
|
|||||
Exercisable, June 30, 2020 |
1,856,699 | 4.52 | ||||||
Exercisable, June 30, 2021 |
1,665,734 | 3.98 |
Options Outstanding |
Options Exercisable | |||||
Exercise Prices |
Number Outstanding |
Weighted-Average Remaining Contractual Life (Years) |
Number Exercisable | |||
0.23 | 155,100 | 4.31 | 155,100 | |||
1.55 | 336,050 | 4.31 | 336,050 | |||
5 | 1,075,000 | 4.36 | 1,075,000 | |||
6.99 | 242,153 | 9.33 | 99,584 | |||
|
| |||||
1,808,303 | 1,665,734 | |||||
|
|
9. |
PERFORMANCE UNIT PLAN |
10. |
EMPLOYEE BENEFIT PLAN |
11. |
REVOLVING LINE OF CREDIT |
12. |
CONVERTIBLE NOTES PAYABLE TO RELATED PARTY |
13. |
CONVERTIBLE NOTES PAYABLE |
14. |
DEBT |
Expected term (in years) |
3 years | |||
Risk-free interest rate |
1.48 | % | ||
Volatility |
33.07 | % |
15. |
OPERATING AND FINANCE LEASE RIGHT OF USE ASSETS |
January 1, 2021 to June 8, 2021 |
January 1, 2020 to June 30, 2020 |
|||||||
Amortization of finance ROU assets |
$ | 1,378,074 | $ | 1,041,000 | ||||
Interest on finance lease liabilities |
132,122 | 168,486 | ||||||
|
|
|
|
|||||
Finance lease expense |
1,510,196 | 1,209,486 | ||||||
Operating lease expense |
730,020 | 797,551 | ||||||
Variable lease expense |
— | — | ||||||
Sublease income |
(200,420 | ) | (198,538 | ) | ||||
|
|
|
|
|||||
Total lease expense |
$ | 2,039,796 | $ | 1,808,499 | ||||
|
|
|
|
January 1, 2021 to June 8, 2021 |
January 1, 2020 to June 30, 2020 |
|||||||
Operating cash flows from operating leases |
$ | 730,020 | $ | 797,551 | ||||
Operating cash flows from finance leases |
132,122 | 168,486 | ||||||
Financing cash flows from finance leases |
1,428,170 | 1,334,369 | ||||||
|
|
|
|
|||||
Cash paid for amounts included in the measurement of lease liabilities |
$ | 2,290,312 | $ | 2,300,406 | ||||
|
|
|
|
January 1, 2021 to June 8, 2021 |
January 1, 2020 to June 30, 2020 |
|||||||
Weighted average remaining lease term (months) |
||||||||
Operating leases |
76 | 81 | ||||||
Finance leases |
20 | 27 | ||||||
Weighted average discount rate |
||||||||
Operating leases |
6.70 | % | 6.70 | % | ||||
Finance leases |
9.60 | % | 8.10 | % |
Operating leases |
Finance leases |
Total |
||||||||||
Years Ending December 31 |
||||||||||||
Remaining 2021 |
$ | 703,441 | $ | 1,818,467 | $ | 2,521,908 | ||||||
2022 |
1,374,443 | 1,495,388 | 2,869,831 | |||||||||
2023 |
1,037,855 | 632,803 | 1,670,658 | |||||||||
Thereafter |
2,950,392 | 56,285 | 3,006,677 | |||||||||
|
|
|
|
|
|
|||||||
Undiscounted cash flows |
6,066,131 | 4,002,943 | 10,069,074 | |||||||||
Less: imputed interest |
(1,030,956 | ) | (250,770 | ) | (1,281,726 | ) | ||||||
|
|
|
|
|
|
|||||||
Total |
$ | 5,035,175 | $ | 3,752,173 | $ | 8,787,348 | ||||||
|
|
|
|
|
|
|||||||
Reconciliation to lease liabilities: |
||||||||||||
Lease liabilities – current |
$ | 1,041,754 | $ | 2,358,123 | $ | 3,399,877 | ||||||
Lease liabilities – non-current |
3,993,421 | 1,394,050 | 5,387,471 | |||||||||
|
|
|
|
|
|
|||||||
Total lease liabilities |
$ | 5,035,175 | $ | 3,752,173 | $ | 8,787,348 | ||||||
|
|
|
|
|
|
16. |
COMMITMENTS AND CONTINGENCIES |
17. |
SUBSEQUENT EVENTS |
Oppenheimer & Co. |
Lake Street Northland Capital Markets |
Amount Paid or to be Paid |
||||
SEC registration fee |
$ | 6,723 | ||
Legal fees and expenses |
$ | 250,000 | ||
Accounting fees and expenses |
$ | 95,000 | ||
Financial printing and miscellaneous expenses |
$ | 400,000 | ||
|
|
|||
Total |
$ | 751,723 | ||
|
|
Exhibit No. |
Description | |
23.4 | Consent of Plante & Moran, PLLC, with respect to TTC Healthcare. | |
23.5 | Consent of Plante & Moran, PLLC, with respect to Behavioral Health Services. | |
23.6 | Consent of D. K. Chhajer & Co., PLLC, with respect to Glocal. | |
23.7 | Consent of Hall & Company, with respect to Cloudbreak. | |
23.8 | Consent of Macias Gini & O’Connell LLP, with respect to Cloudbreak. | |
23.9 | Consent of Plante & Moran, PLLC, with respect to UpHealth Holdings, Inc. | |
24.1** | Power of Attorney, incorporated by reference to page II-9 to initial filing of this Registration Statement on Form S-1. | |
101.INS | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because iXBRL tags are embedded within the Inline XBRL document). | |
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | Inline XBRL Taxonomy Extension Labels Linkbase Document | |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
104 | The Cover Page Interactive Data File, formatted in Inline XBRL (included within the Exhibit 101 attachments). |
** | Previously filed. |
† | Certain exhibits and schedules to this exhibit have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The registrant agrees to furnish a copy of the omitted exhibits and schedules to the SEC on a supplemental basis upon its request. |
# | Indicates management contract or compensatory plan or arrangement |
(b) | Financial Statements |
1) | The undersigned Registrant will provide to the underwriters at the closing specified in the underwriting agreement, certificates in such denominations and registered in such names as required by the underwriters to permit prompt delivery to each purchaser. |
2) | For purposes of determining any liability under the Securities Act, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective. |
3) | For the purpose of determining any liability under the Securities Act, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. |
UPHEALTH, INC. | ||
By: | /s/ Dr. Ramesh Balakrishnan | |
Name: | Dr. Ramesh Balakrishnan | |
Title: | Chief Executive Officer |
Name |
Title |
Date | ||
/s/ Ramesh Balakrishnan Dr. Ramesh Balakrishnan |
Chief Executive Officer ( Principal Executive Officer |
September 27, 2021 | ||
/s/ Martin S. A. Beck Martin S. A. Beck |
Chief Financial Officer ( Principal Accounting and Financial Officer |
September 27, 2021 | ||
* Dr. Chirinjeev Kathuria |
Co-Chairman of the Board of Directors |
September 27, 2021 | ||
* Dr. Avi S. Katz |
Co-Chairman of the Board of Directors |
September 27, 2021 | ||
* Moshe Bar-Siman-Tov |
Director | September 27, 2021 | ||
* Dr. Raluca Dinu |
Director | September 27, 2021 | ||
* Nathan Locke |
Director | September 27, 2021 | ||
* Neil Miotto |
Director | September 27, 2021 | ||
* Dr. Mariya Pylypiv |
Director | September 27, 2021 | ||
* Agnès Rey-Giraud |
Director | September 27, 2021 | ||
* Jerome Ringo |
Director | September 27, 2021 |
*By: | /s/ Dr. Ramesh Balakrishnan | |
Dr. Ramesh Balakrishnan Attorney-in-fact |