Revision (Tables)

12 Months Ended

Dec. 31, 2021

Accounting Changes and Error Corrections [Abstract]

Schedule of Revisions

The following table sets forth the effects of the revision on the affected line items within the Company’s previously reported Consolidated Balance Sheet as of December 30, 2020 (dollars in thousands):

	December 31, 2020
	As Previously Reported		Adjustments			As Revised
Assets
Current assets:
Cash, cash equivalents and restricted cash	$	33,807	$	—		$	33,807
Accounts receivable, net of unpaid service provider costs 1		76,709		(9,356	)		67,353
Inventory		922		—			922
Prepaid expenses and other current assets		8,937		—			8,937
Total current assets		120,375		(9,356	)		111,019
Property and equipment, net		38,126		—			38,126
Goodwill		234,328		—			234,328
Payor relationships, net		189,570		—			189,570
Other intangibles, net		36,785		—			36,785
Other assets		4,362		—			4,362
Total assets	$	623,546	$	(9,356	)	$	614,190
Liabilities and stockholders’ equity / members’ capital
Current liabilities:
Current portion of notes payable	$	4,800	$	—		$	4,800

Current portion of equipment loans	314	—		314
Current portion of finance lease liabilities	876	—		876
Current portion of contingent consideration	—	—		—
Accounts payable and accrued expenses 2	33,180	(1,810	)	31,370
Deferred revenue	988	—		988

1 Reflects a reduction to accounts receivable and capitated revenue as a result of the reduced MRA estimate.

2 Reflects reductions to accounts payable and accrued expenses and direct patient costs as a result of the decrease in estimated provider payments corresponding to the reduced MRA estimate.

Current portions due to sellers 3		27,129			(575	)		26,554
Current portion of operating lease liabilities		—			—			—
Other current liabilities 4		1,333			945			2,278
Total current liabilities		68,620			(1,440	)		67,180
Notes payable, net of current portion and debt issuance costs		456,745			—			456,745
Equipment loans, net of current portion		873			—			873
Long term portion of finance lease liabilities		1,580			—			1,580
Deferred revenue, net of current portion		4,277			—			4,277
Due to sellers, net of current portion		13,976			—			13,976
Contingent consideration		5,172			—			5,172
Other liabilities		11,651			—			14,762
Total liabilities		566,005			(1,440	)		564,565
Stockholders’ Equity / Members’ Capital
Members’ capital		157,591			—			157,591
Accumulated deficit		(99,916	)		(7,916	)		(107,832	)
Notes receivable, related parties		(134	)		—			(134	)
Total member’s capital		57,541			(7,916	)		49,625
Total liabilities and members’ Capital	$	623,546		$	(9,356	)	$	614,190

3 Corrects the accrual for compensation-related costs due to sellers of acquired businesses recorded in transaction costs and other.

4 Reflects a reclassification from accounts receivable, net of unpaid service provider costs for plans that are in a net deficit position to other current liabilities.

The following table sets forth the effects of the revision on the affected line items within the Company’s previously reported Consolidated Statements of Operations for the year ended December 30, 2020 and December 31, 2019 (dollars in thousands):

	December 31, 2020									December 31, 2019
	As Previously Reported			Adjustments			As Revised			As Previously Reported			Adjustments			As Revised
Revenue:
Capitated revenue 1	$	794,164		$	2,209		$	796,373		$	343,903		$	(3,002	)	$	340,901
Fee-for-service and other revenue		35,203			—			35,203			20,483						20,483
Total revenue		829,367			2,209			831,576			364,386			(3,002	)		361,384
Operating expenses:
Third-party medical costs		564,987			—			564,987			241,089			1,483			242,572
Direct patient expense 2		102,284			(926	)		101,358			43,020			(920	)		42,100
Selling, general and administrative expenses		103,962			—			103,962			59,148						59,148
Depreciation and amortization expense		18,499			—			18,499			6,822						6,822
Transaction costs and other 3		43,520			(575	)		42,945			17,583						17,583
Change in fair value of contingent consideration		65			—			65			2,845						2,845
Total operating expenses		833,317			(1,501	)		831,816			370,507			563			371,070
Income (loss) from operations		(3,950	)		3,710			(240	)		(6,121	)		(3,565	)		(9,686	)
Other income and expense:
Interest expense		(34,002	)		—			(34,002	)		(10,163	)		—			(10,163	)
Interest income		320			—			320			319			—			319
Loss on extinguishment of debt		(23,277	)		—			(23,277	)		—			—			—
Change in fair value of embedded derivative		(12,764	)		—			(12,764	)		—			—			—
Change in fair value of warrant liabilities		—			—			—			—			—			—
Other income (expense)		(450	)		—			(450	)		(250	)		—			(250	)
Total other income (expense)		(70,173	)		—			(70,173	)		(10,094	)		—			(10,094	)
Net loss before income tax benefit (expense)		(74,123	)		3,710			(70,413	)		(16,215	)		(3,565	)		(19,780	)
Income tax expense (benefit)		651			—			651			—			—			—
Net income (loss)	$	(74,774	)	$	3,710		$	(71,064	)	$	(16,215	)	$	(3,565	)	$	(19,780	)

1 Reflects a decrease to capitated revenue and accounts receivable as a result of the reduced MRA.

2 Reflects reductions to direct patient expense and accounts payable and accrued expenses as a result of the decrease in estimated provider payments corresponding to the reduced MRA estimate.

3 Corrects compensation-related costs due to sellers of acquired businesses with a corresponding increase in additional paid in capital.

The following table sets forth the effects of the revision on the affected line items within the Company’s previously reported Consolidated Statements of Cash Flows for the years ended December 30, 2020 and December 31, 2019 (dollars in thousands):

	2020									2019
	As Previously Reported			Adjustments			As Revised			As Previously Reported			Adjustments			As Revised
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss1	$	(74,774	)	$	3,710		$	(71,064	)	$	(16,215	)	$	(3,565	)	$	(19,780	)
Equity-based compensation		528			—			528			182			—			182
Accounts receivable, net2		(27,500	)		(2,809	)		(30,309	)		(21,779	)		4,139			(17,640	)
Prepaid expenses and other current assets		(5,152	)		—			(5,152	)		(2,086	)		—			(2,086	)
Accounts payable and accrued expenses3		28,250			(925	)		27,325			11,250			(920	)		10,330
Other liabilities4		2,486			24			2,510			2,279			346			2,625
Net cash used in operating activities		(9,235	)		—			(9,235	)		(15,465	)		—			(15,465	)
CASH FLOWS FROM INVESTING ACTIVITIES
Net cash used in investing activities		(268,366	)		—			(268,366	)		(90,784	)					(90,784	)
CASH FLOWS FROM FINANCING ACTIVITIES
Net cash provided by financing activities		282,216			—			282,216			132,038			—			132,038
Net increase (decrease) in cash, cash equivalents and restricted cash		4,615						4,615			25,789						25,789
Cash, cash equivalents and restricted cash at beginning of year		29,192						29,192			3,403						3,403
Cash, cash equivalents and restricted cash at end of period	$	33,807					$	33,807		$	29,192					$	29,192

1 Reflects the cumulative impact on net loss of the adjustments detailed within the statement of operations.

2 Reflects changes to accounts receivable as a result of the reduced MRA estimate.

3 Reflects changes to accounts payable and accrued expenses as a result of the change in estimated provider payments corresponding to the reduced MRA estimate.

4 Reflects a reclassification from accounts receivable, net of unpaid service provider costs for plans that are in a net deficit position and corrects accrual for compensation-related costs due to sellers of acquired businesses.