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| | | | F-1 | | |
| | |
Historical
|
| | | | | | | | | | | | | ||||||||||||||||||||||
| | |
Successor
|
| | |
Predecessor
|
| | | | | | | | | | | | | | | | | | | | | | | | | ||||||
| | |
P3 LLC
(From 12/3/2021 through 12/31/2021) |
| | |
P3 LLC
(From 1/1/2021 through 12/2/2021) |
| |
Foresight
(From 1/1/2021 through 12/2/2021) |
| |
Transaction
Accounting Adjustments |
| | | | | | | |
Pro Forma
Combined |
| |||||||||||||||
Revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Capitated Revenue
|
| | | $ | 57,225 | | | | | | $ | 567,735 | | | | | $ | — | | | | | $ | — | | | | | | | | | | | $ | 624,960 | | |
Other Patient Service Revenue
|
| | | | 1,538 | | | | | | | 10,867 | | | | | | — | | | | | | — | | | | | | | | | | | | 12,405 | | |
Total Revenues
|
| | | | 58,763 | | | | | | | 578,602 | | | | | | — | | | | | | — | | | | | | | | | | | | 637,365 | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Medical Expenses
|
| | | | 66,877 | | | | | | | 592,465 | | | | |
|
—
|
| | | | | — | | | | | | | | | | | | 659,342 | | |
Premium Deficiency Reserve
|
| | | | 26,277 | | | | | | | 11,559 | | | | | | — | | | | | | — | | | | | | | | | | | | 37,836 | | |
General and administrative expenses
|
| | | | 16,983 | | | | | | | 100,243 | | | | | | 22,748 | | | | | | 15,625 | | | | |
|
(A)
|
| | | | | 155,599 | | |
Selling and Marketing expenses
|
| | | | 364 | | | | | | | 1,818 | | | | | | — | | | | | | — | | | | | | | | | | | | 2,182 | | |
Research and development expenses
|
| | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | |
Amortization of Intangibles
|
| | | | 6,962 | | | | | | | 35 | | | | | | — | | | | | | 76,578 | | | | |
|
(B)
|
| | | | | 83,575 | | |
Depreciation expense
|
| | | | 188 | | | | | | | 1,540 | | | | | | — | | | | | | — | | | | | | | | | | | | 1,728 | | |
Franchise tax expense
|
| | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | |
Total operating expenses
|
| | | | 117,651 | | | | | | | 707,660 | | | | | | 22,748 | | | | | | 92,203 | | | | | | | | | | | | 940,262 | | |
Loss from operations
|
| | | | (58,888) | | | | | | $ | (129,058) | | | | | $ | (22,748) | | | | | | (92,203) | | | | | | | | | | | | (302,897) | | |
Change in fair value of warrant
liability |
| | | | — | | | | | | | — | | | | | | (2,074) | | | | | | — | | | | | | | | | | | | (2,074) | | |
Interest earned on marketable securities held in a Trust Account
|
| | | | — | | | | | | | — | | | | | | 17 | | | | | | — | | | | | | | | | | | | 17 | | |
Interest expense, net
|
| | | | (1,322) | | | | | | | (9,677) | | | | | | — | | | | | | — | | | | | | | | | | | | (10,999) | | |
Mark-to-Market of Stock Warrants
|
| | | | 2,272 | | | | | | | (7,665) | | | | | | — | | | | | | 7,665 | | | | |
|
(C)
|
| | | | | 2,272 | | |
Other income (expense), net
|
| | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | |
Loss before income taxes
|
| | | | (57,938) | | | | | | | (146,400) | | | | | | (24,805) | | | | | | (84,538) | | | | | | | | | | | | (313,681) | | |
Provision for (benefit from) income
taxes |
| | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | |
Net loss
|
| | | | (57,938) | | | | | | | (146,400) | | | | | | (24,805) | | | | | | (84,538) | | | | | | | | | | | | (313,681) | | |
Net loss attributable to noncontrolling interest
|
| | | | (47,857) | | | | | | | — | | | | | | — | | | | | | (211,244) | | | | |
|
(D)
|
| | | | | (259,101) | | |
Net loss attributable to common stockholders
|
| | | $ | (10,081) | | | | | | $ | (146,400) | | | | | $ | (24,805) | | | | | $ | 126,706 | | | | | | | | | | | $ | (54,580) | | |
Loss per share | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average shares outstanding – basic
|
| | | | 41,579 | | | | | | | N/A | | | | | | 29,692 | | | | | | | | | | | | | | | | | | 41,579 | | |
Net loss per share – basic
|
| | | $ | (0.24) | | | | | | | N/A | | | | | $ | (0.84) | | | | | | | | | | | | | | | | | $ | (1.31) | | |
Weighted average shares outstanding – diluted
|
| | | | 41,579 | | | | | | | N/A | | | | | | 29,692 | | | | | | | | | | | | | | | | | | 41,579 | | |
Net loss per share – diluted
|
| | | $ | (0.24) | | | | | | | N/A | | | | | $ | (0.84) | | | | | | | | | | | | | | | | | $ | (1.31) | | |
| | |
Shares
|
| |
Voting %
|
| ||||||
Non-Blocker P3 Equityholders(1)
|
| | | | 202,024,923 | | | | | | 82.9% | | |
Blocker Sellers(2)
|
| | | | 8,732,517 | | | | | | 3.6% | | |
Public Stockholders
|
| | | | 3,737,316 | | | | | | 1.5% | | |
Founder Holders
|
| | | | 8,738,750 | | | | | | 3.6% | | |
Subscribers
|
| | | | 20,370,307 | | | | | | 8.4% | | |
Total(3) | | | | | 243,603,813 | | | | | | 100.0% | | |
Purchase Price Allocation
|
| |
As of
December 31, 2021 |
| |||
Equity Consideration
|
| | | $ | 80,301 | | |
Fair Value of Noncontrolling Interest Consideration
|
| | | | 1,807,428 | | |
Stock Compensation Pre-combination Services
|
| | | | 26,313 | | |
Cash Consideration
|
| | | | 18,405 | | |
Payment of P3 Transaction Costs
|
| | | | 19,152 | | |
Total Purchase Consideration
|
| | | $ | 1,951,599 | | |
| | |
Weighted
Average Useful Life (Years) |
| |
Fair Value
|
| |
For the twelve
months ended December 31, 2021 |
| |||||||||
Trademarks
|
| | | | 10 | | | | |
$
|
147,700
|
| | | |
$
|
14,770
|
| |
Customer relationships
|
| | | | 10 | | | | | | 684,000 | | | | | | 68,400 | | |
Provider network
|
| | | | 10 | | | | | | 3,700 | | | | | | 370 | | |
Pro forma amortization expenses
|
| | | | | | | | | $ | 835,400 | | | | | $ | 83,540 | | |
Less: Actual amortization expenses recorded
|
| | | | | | | | | | | | | | | | 6,962 | | |
Pro forma adjustment
|
| | | | | | | | | | | | | | | $ | 76,578 | | |
| | |
Year Ended
December 31, 2021 |
| |||
Net Loss Attributable to Controlling Interest (in thousands)
|
| | | $ | (54,580) | | |
Weighted Average Shares Outstanding – Basic and Dilutive
|
| | | | 41,578,890 | | |
Loss Per Share – Basic and Dilutive
|
| | | $ | (1.31) | | |
| | |
December 31,
2019 |
| |
December 31,
2020 |
| |
December 31,
2021 |
| |
June 30,
2022 |
| |
CAGR
|
| |||||||||||||||
At-risk Medicare Advantage Members
|
| | | | 19,700 | | | | | | 50,600 | | | | | | 67,000 | | | | | | 101,700 | | | | | | 82% | | |
Year-over-year % change
|
| | | | 89% | | | | | | 157% | | | | | | 32% | | | | | | 73% | | | | | | | | |
| | |
December 31,
2019 |
| |
December 31,
2020 |
| |
December 31,
2021 |
| |
June 30,
2022 |
| ||||||||||||
At-risk members
|
| | | | 19,700 | | | | | | 50,600 | | | | | | 67,000 | | | | | | 101,700 | | |
Affiliate PCPs
|
| | | | 1,000 | | | | | | 1,500 | | | | | | 2,100 | | | | | | 2,600 | | |
| | |
Successor
|
| | |
Predecessor
|
| |
Successor
|
| | |
Predecessor
|
| ||||||||||||||||||||||||||||||||||||
| | |
Three
Months Ended |
| |
% of
Revenue |
| | |
Three Months
Ended |
| |
% of Revenue
|
| |
Six Months
Ended |
| |
% of
Revenue |
| | |
Six Months
Ended |
| |
% of
Revenue |
| ||||||||||||||||||||||||
| | |
June 30, 2022
|
| | |
June 30, 2021
|
| |
June 30, 2022
|
| | |
June 30, 2021
|
| ||||||||||||||||||||||||||||||||||||
Operating Revenue: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Capitated Revenue
|
| | | $ | 267,102 | | | | | | 99% | | | | | | $ | 141,561 | | | | | | 98% | | | | | $ | 536,787 | | | | | | 99% | | | | | | $ | 290,525 | | | | | | 98% | | |
Other Patient Service Revenue
|
| | | | 2,352 | | | | | | 1% | | | | | | | 3,026 | | | | | | 2% | | | | | | 6,211 | | | | | | 1% | | | | | | | 5,359 | | | | | | 2% | | |
Total Operating Revenue
|
| | | | 269,454 | | | | | | 100% | | | | | | | 144,587 | | | | | | 100% | | | | | | 542,998 | | | | | | 100% | | | | | | | 295,884 | | | | | | 100% | | |
Operating Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Medical Expenses
|
| | | | 267,448 | | | | | | 99% | | | | | | | 150,381 | | | | | | 104% | | | | | | 533,269 | | | | | | 98% | | | | | | | 297,005 | | | | | | 100% | | |
Premium Deficiency Reserve
|
| | | | (1,490) | | | | | | (1)% | | | | | | | 1,000 | | | | | | 1% | | | | | | (2,814) | | | | | | (1)% | | | | | | | 3,000 | | | | | | 1% | | |
Corporate, General and Administrative Expenses
|
| | | | 41,099 | | | | | | 15% | | | | | | | 18,390 | | | | | | 13% | | | | | | 79,697 | | | | | | 15% | | | | | | | 33,449 | | | | | | 11% | | |
Sales and Marketing Expenses
|
| | | | 1,408 | | | | | | 1% | | | | | | | 357 | | | | | | 0% | | | | | | 2,273 | | | | | | 0% | | | | | | | 627 | | | | | | 0% | | |
Goodwill impairment
|
| | | | 851,456 | | | | | | 316% | | | | | | | — | | | | | | 0% | | | | | | 851,456 | | | | | | 157% | | | | | | | — | | | | | | 0% | | |
Depreciation and Amortization
|
| | | | 21,720 | | | | | | 8% | | | | | | | 430 | | | | | | 0% | | | | | | 43,472 | | | | | | 8% | | | | | | | 762 | | | | | | 0% | | |
Total Operating Expenses
|
| | | | 1,181,641 | | | | | | 438% | | | | | | | 170,558 | | | | | | 118% | | | | | | 1,507,353 | | | | | | 277% | | | | | | | 334,843 | | | | | | 112% | | |
Operating Loss
|
| | | | (912,187) | | | | | | (338)% | | | | | | | (25,971) | | | | | | (18)% | | | | | | (964,355) | | | | | | (177)% | | | | | | | (38,959) | | | | | | (12)% | | |
Other Income (Expense): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest Expense, net
|
| | | | (2,734) | | | | | | (1)% | | | | | | | (2,370) | | | | | | (2)% | | | | | | (5,495) | | | | | | (1)% | | | | | | | (4,494) | | | | | | (2)% | | |
Mark-to-Market of Stock Warrants
|
| | | | 11,815 | | | | | | 4% | | | | | | | (1,123) | | | | | | (1)% | | | | | | 5,954 | | | | | | 1% | | | | | | | (10,662) | | | | | | (4)% | | |
Other
|
| | | | — | | | | | | | | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | | — | | | | | | | | |
Total Other Income (Expense)
|
| | | | 9,081 | | | | | | 3% | | | | | | | (3,493) | | | | | | (3)% | | | | | | 459 | | | | | | 0% | | | | | | | (15,156) | | | | | | (6)% | | |
Loss Before Income Taxes
|
| | | | (903,106) | | | | | | (335)% | | | | | | | (29,464) | | | | | | (21)% | | | | | | (963,896) | | | | | | (177)% | | | | | | | (54,115) | | | | | | (18)% | | |
Provision For Income Taxes
|
| | | | — | | | | | | 0% | | | | | | | — | | | | | | 0% | | | | | | — | | | | | | 0% | | | | | | | — | | | | | | 0% | | |
Net Loss
|
| | | | (903,106) | | | | | | (335)% | | | | | | | (29,464) | | | | | | (21)% | | | | | | (963,896) | | | | | | (177)% | | | | | | | (54,115) | | | | | | (18)% | | |
Less Net Loss Attributable to Redeemable Non-Controlling Interests
|
| | | | (748,756) | | | | | | (278)% | | | | | | | — | | | | | | 0% | | | | | | (798,969) | | | | | | (147)% | | | | | | | — | | | | | | 0% | | |
Net Loss Attributable to Controlling Interests
|
| | | $ | (154,350) | | | | | | (57)% | | | | | | $ | (29,464) | | | | | | (21)% | | | | | $ | (164,927) | | | | | | (30)% | | | | | | $ | (54,115) | | | | | | (18)% | | |
| | |
Successor
|
| | |
Predecessor
|
| ||||||||||||||||||||||||||||||||||||||||||
($s in thousands)
|
| |
December 3, 2021
through December 31, 2021 |
| |
% of
Revenue |
| | |
January 1, 2021
through December 2, 2021 |
| |
% of
Revenue |
| |
Year Ended
December 31, 2020 |
| |
% of
Revenue |
| |
Year Ended
December 31, 2019 |
| |
% of
Revenue |
| ||||||||||||||||||||||||
Revenue: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Capitated revenue
|
| | | $ | 57,225 | | | | | | 97% | | | | | | $ | 567,735 | | | | | | 98% | | | | | $ | 480,740 | | | | | | 98% | | | | | $ | 139,333 | | | | | | 96% | | |
Other patient service revenue
|
| | | | 1,538 | | | | | | 3% | | | | | | | 10,867 | | | | | | 2% | | | | | | 10,324 | | | | | | 2% | | | | | | 6,149 | | | | | | 4% | | |
Total revenue
|
| | | | 58,763 | | | | | | 100% | | | | | | | 578,602 | | | | | | 100% | | | | | | 491,064 | | | | | | 100% | | | | | | 145,482 | | | | | | 100% | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Medical expense
|
| | | | 66,877 | | | | | | 114% | | | | | | | 592,465 | | | | | | 102% | | | | | | 484,502 | | | | | | 99% | | | | | | 141,030 | | | | | | 97% | | |
Premium deficiency reserve
|
| | | | 26,277 | | | | | | 45% | | | | | | | 11,559 | | | | | | 2% | | | | | | (20,539) | | | | | | (4)% | | | | | | 6,364 | | | | | | 4% | | |
Corporate, general & administrative expenses
|
| | | | 16,983 | | | | | | 29% | | | | | | | 100,243 | | | | | | 17% | | | | | | 53,390 | | | | | | 11% | | | | | | 36,423 | | | | | | 25% | | |
Sales and marketing expense
|
| | | | 364 | | | | | | 1% | | | | | | | 1,818 | | | | | | —% | | | | | | 1,503 | | | | | | —% | | | | | | 802 | | | | | | 1% | | |
Amortization of intangible
assets |
| | | | 6,962 | | | | | | 12% | | | | | | | 35 | | | | | | —% | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
Depreciation expense
|
| | | | 188 | | | | | | —% | | | | | | | 1,540 | | | | | | —% | | | | | | 795 | | | | | | —% | | | | | | 399 | | | | | | —% | | |
Total operating expenses
|
| | | | 117,651 | | | | | | 201% | | | | | | | 707,660 | | | | | | 121% | | | | | | 519,651 | | | | | | 106% | | | | | | 185,018 | | | | | | 127% | | |
Operating loss
|
| | | | (58,888) | | | | | | (101)% | | | | | | | (129,058) | | | | | | (21)% | | | | | | (28,587) | | | | | | (6)% | | | | | | (39,536) | | | | | | (27)% | | |
Other income (expense): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense, net
|
| | | | (1,322) | | | | | | (2)% | | | | | | | (9,677) | | | | | | (2)% | | | | | | (2,533) | | | | | | (1)% | | | | | | (2,534) | | | | | | (2)% | | |
Mark-to-market of stock warrants
|
| | | | 2,272 | | | | | | 4% | | | | | | | (7,665) | | | | | | (1)% | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
Other
|
| | | | — | | | | | | —% | | | | | | | — | | | | | | —% | | | | | | (291) | | | | | | —% | | | | | | 98 | | | | | | —% | | |
Total other income (expense)
|
| | | | 950 | | | | | | 2% | | | | | | | (17,342) | | | | | | (3)% | | | | | | (2,824) | | | | | | (1)% | | | | | | (2,436) | | | | | | (2)% | | |
Net loss before income taxes
|
| | | | (57,938) | | | | | | (99)% | | | | | | | (146,400) | | | | | | (24)% | | | | | | (31,411) | | | | | | (7)% | | | | | | (41,972) | | | | | | (29)% | | |
Provision for income taxes
|
| | | | — | | | | | | —% | | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
Net loss
|
| | | | (57,938) | | | | | | (99)% | | | | | | | (146,400) | | | | | | (24)% | | | | | | (31,411) | | | | | | (7)% | | | | | | (41,972) | | |