CONTRACT LIABILITIES

9 Months Ended

Sep. 30, 2023

Revenue from Contract with Customer [Abstract]

As further explained in Note 15, “Related Party Transactions,” in these unaudited condensed consolidated financial statements, the Company entered into certain agreements with Humana under which the Company receives administrative payments in exchange for providing care coordination services at certain clinics licensed to the Company over the term of such agreements. The Company’s contract liabilities balance related to these payments from Humana was $0.2 million and $6.5 million as of September 30, 2023 and December 31, 2022, respectively. The short-term portion was recorded in other current liabilities and the long-term portion was recorded in other liabilities. The Company recognized $0.7 million and $2.0 million in revenue from contract liabilities recorded during the three and nine months ended September 30, 2023, respectively, and $0.7 million and $1.9 million in the three and nine months ended September 30, 2022, respectively. Further, the Company released $4.2 million related to the Sale Transaction for the three and nine months ended September 30, 2023.

A summary of significant changes in the contract liabilities balance during the period is as follows:


(in thousands)		For the three months ended September 30, 2023
Balance at June 30, 2023	$	5,111


Revenues recognized from current period increases		(675)
Release related to the Sale Transaction		(4,234)
Balance at September 30, 2023	$	202


(in thousands)		For the nine months ended September 30, 2023
Balance at December 31, 2022	$	6,461


Revenues recognized from current period increases		(2,025)
Release related to the Sale Transaction		(4,234)
Balance at September 30, 2023	$	202

Of the September 30, 2023 contract liabilities balance, the Company expects to recognize the following amounts as revenue in the succeeding years:


Years ended December 31,		Amount (in thousands)
2023 - remaining	$	41
2024		161



Total	$	202