P3 Health Partners Inc. Post-effective amendment to a registration statement that is not immediately effective upon filing

Post-effective amendment to a registration statement that is not immediately effective upon filing

Intangible Assets

Intangible Assets

6 Months Ended

12 Months Ended

Jun. 30, 2022

Dec. 31, 2021

P3 Health Partners Inc.

Finite-Lived Intangible Assets [Line Items]

Intangible Assets

Note 12: Intangible Assets

The follow tables provide changes in other intangible assets for the six months ended June 30, 2022.


	Customer						Provider		Medical
	Relationships		Trademarks		Payor Contracts		Network		Licenses		Total
Balance at December 31, 2021	$	678,300,000	$	147,369,167	$	4,700,271	$	4,769,167	$	700,000	$	835,838,605
Amortization		(34,200,000)		(7,610,000)		(235,014)		(240,000)		—		(42,285,014)
Balance at June 30, 2022	$	644,100,000		139,759,167		4,465,257		4,529,167		700,000		793,553,591

Amortization of intangible assets is anticipated to be approximately $84 million in each of the years 2022 through 2026. The weighted average remaining useful life of definite lived intangible assets is 9.4 years.

Note 12: Intangible Assets

The follow tables provide changes in intangible assets for the periods indicated.


	Predecessor
	Customer
	Relationships		Total
Balance at December 31, 2020	$	—	$	—
Acquisitions		2,045,604		2,045,604
Amortization		(34,396)		(34,396)
Balance at December 2, 2021	$	2,011,208	$	2,011,208


	Successor
	Customer				Payor		Provider		Medical
	Relationships		Trademarks		Contracts		Network		Licenses		Total
Balance at December 3, 2021⁽¹⁾	$	684,000,000	$	147,700,000	$	—	$	3,700,000	$	—	$	835,400,000
Acquisitions		—		900,000		4,700,271		1,100,000		700,000		7,400,271
Amortization		(5,700,000)		(1,230,833)		—		(30,833)		—		(6,961,666)
Balance at December 31, 2021	$	678,300,000	$	147,369,167	$	4,700,271	$	4,769,167	$	700,000	$	835,838,605

(1)	Represents the opening balance of intangibles as of December 3, 2021 due to the Business Combination

Customer relationships recorded in the Predecessor Period of 2021 were associated with the acquisition of two medical practices. The opening balance of intangible assets at December 3, 2021 reflects the Business Combinations. Intangible assets recorded in the Successor Period of 2021 was associated with the Medcore Acquisition. See Note 7 “Business Combinations.”

Amortization of intangible assets is anticipated to be approximately $84.6 million in 2022 and 2023 and $84.1 million for each of the years 2024 through 2026. The weighted average remaining useful life of definite lived intangible assets is as below:


	Customer		Payor	Provider
	Relationships	Trademarks	Contracts	Network
Weighted average remaining useful life	9.9 years	9.9 years	10 years	9.9 years