2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Mar. 31, 2017

Accounting Policies [Abstract]

Impact of recent accounting standards change

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
In thousands except per share data	As previously reported			Impact of adoption		As currently reported
Benefit from income taxes	$	1,180		$	326	$	1,506
Net loss		(1,433	)		326		(1,107	)
Net loss attributable to Radnet Inc. common shareholders		(1,723	)		326		(1,397	)
Basic and diluted loss per share		(0.04	)		0.01		(0.03	)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
In thousands		As previously reported			Impact of adoption			As currently reported
Net loss	$	(1,433	)	$	326		$	(1,107	)
Deferred taxes		(1,286	)		(326	)		(1,612	)
Others		2,683			–			2,683
Net decrease in cash and cash equivalents	$	(36	)	$	–		$	(36	)

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
In thousands		As previously reported			Impact of adoption		As currently reported
Net loss	$	(1,433	)	$	326	$	(1,107	)
Foreign currency translation adjustments		4			–		4
Comprehensive loss		(1,429	)		326		(1,103	)
Less comprehensive income attributible to non-controlling interests		290			–		290
Comprehensive loss attributable to Radnet Inc. common shareholders	$	(1,719	)	$	326	$	(1,393	)

Service Fee Revenue

	Three Months Ended March 31,
	2017			2016
Commercial insurance	$	140,995		$	131,491
Medicare		47,678			45,820
Medicaid		6,733			7,023
Workers' compensation/personal injury		9,057			9,514
Other (1)		8,287			6,994
Service fee revenue, net of contractual allowances and discounts		212,750			200,842
Provision for bad debts		(11,646	)		(10,304	)
Net service fee revenue		201,104			190,538
Revenue under capitation arrangements		27,909			25,850
Total net revenue	$	229,013		$	216,388

_____________________

⁽¹⁾ Other consists of revenue from teleradiology services, consulting fees and software revenue.

Schedule of goodwill and other intangible assets

Balance as of December 31, 2016	$	239,553
Goodwill acquired through the acquisition of Resolution Imaging Medical Corp		1,901
Goodwill acquired through the acquisition of MRI Centers of Torrance		401
Goodwill included in assets held for sale		(1,901	)
Balance as of March 31, 2017	$	239,954

Fair value of derivatives

Derivatives	Balance Sheet Location	Fair Value – Asset Derivatives
Interest rate contracts	Current and other non-current liabilities	($435)

Effect of derivative instruments on comprehensive income

Effective Interest Rate Cap	Amount of Loss Recognized on Derivative	Location of Loss Recognized in Income on Derivative
Interest rate contracts	($778)	Other Comprehensive Loss

Schedule of fair value of assets and liabilities

	As of March 31, 2017
	Level 1		Level 2			Level 3		Total
Current and other non-current liabilities
Interest Rate Contracts	$	–	$	(435	)	$	–	$	(435	)

	As of December 31, 2016
	Level 1		Level 2		Level 3		Total
Current assets
Interest Rate Contracts	$	–	$	818	$	–	$	818

	As of March 31, 2017
	Level 1		Level 2			Level 3		Total
Current and other non-current liabilities
Interest Rate Contracts	$	–	$	(435	)	$	–	$	(435	)

	As of December 31, 2016
	Level 1		Level 2		Level 3		Total
Current assets
Interest Rate Contracts	$	–	$	818	$	–	$	818

Earnings per share

	Three Months Ended March 31,
	2017			2016
Net loss attributable to RadNet, Inc. common stockholders	$	(1,210	)	$	(1,397	)
BASIC AND DILUTED NET LOSS PER SHARE ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS
Weighted average number of common shares outstanding during the period		46,560,017			46,581,491
Basic and diluted net loss per share attributable to RadNet, Inc. common stockholders	$	(0.03	)	$	(0.03	)

Investment in joint ventures

Balance as of December 31, 2016	$	43,509
Equity in earnings in these joint ventures		1,928
Distribution of earnings		(2,323	)
Contributions in a new joint venture		3,000
Balance as of March 31, 2017	$	46,114

Joint venture investment and financial information

Balance Sheet Data:		March 31, 2017			December 31, 2016
Current assets	$	40,737		$	40,093
Noncurrent assets		101,423			100,146
Current liabilities		(16,408	)		(14,077	)
Noncurrent liabilities		(42,304	)		(44,405	)
Total net assets	$	83,448		$	81,757
Book value of RadNet joint venture interests	$	39,741		$	38,538
Cost in excess of book value of acquired joint venture interests		6,373			4,970
Total value of Radnet joint venture interests	$	46,114		$	43,509
Total book value of other joint venture partner interests	$	43,707		$	43,219

Income statement data for the three months ended March 31,	2017		2016
Net revenue	$	41,251	$	39,220
Net income	$	4,130	$	5,614