Annual report pursuant to Section 13 and 15(d)

Restatement of Quarterly Financial Information (Unaudited)

v3.22.2.2
Restatement of Quarterly Financial Information (Unaudited)
12 Months Ended
Dec. 31, 2021
Restatement of Quarterly Financial Information (Unaudited)  
Restatement of Quarterly Financial Information (Unaudited)

Note 30: Restatement of Quarterly Financial Information (Unaudited)

We have restated herein our previously issued unaudited condensed consolidated financial statements for each interim period within the fiscal years ended December 31, 2021 and December 31, 2020. See Note 2 “Restatement of Previously Issued Financial Statements” for additional information.

    

As Previously

    

Network

    

Preferred Returns

    

Class A Units

    

Revenue

    

Reported

Adjustments

Adjustments

Adjustment

Adjustments

As Restated

Condensed Consolidated Balance Sheet as of September 30, 2021 (Unaudited)

Class A Units Subject to Possible Redemption

$

$

$

$

43,656,270

$

$

43,656,270

Class D Units Subject to Possible Redemption

54,936,716

(7,895,162)

47,041,554

Contributed Capital

41,764,270

(41,764,270)

Class A Preferred Returns

6,594,660

(6,594,660)

Accumulated Equity-Based Compensation

2,747,960

(921,092)

1,826,868

Retained Loss from Non-Controlling Interests

 

(26,231,059)

 

26,231,059

 

Accumulated Deficit (formerly Accumulated Loss from Controlling Interest)

(203,942,517)

(26,231,059)

14,489,765

(970,908)

(216,654,719)

Condensed Consolidated Statement of Operations for the Nine Months Ended September 30, 2021 (Unaudited)

Capitated Revenue

$

447,137,121

$

$

$

$

(3,539,071)

$

443,598,050

Other Patient Service Revenue

12,366,111

(3,893,823)

8,472,288

Total Operating Revenue

459,503,232

(7,432,894)

452,070,338

Medical Expenses

459,233,085

(899,940)

458,333,145

Total Operating Expenses

520,053,309

(899,940)

519,153,369

Operating Loss

(60,550,077)

(6,532,954)

(67,083,031)

Interest Expense, net

(13,130,628)

6,107,441

(7,023,187)

Total Other Expenses

(25,193,893)

6,107,441

(19,086,452)

Net Loss Attributable to Non-Controlling Interests

(8,043,678)

8,043,678

Net Loss (formerly Net Loss Attributable to Controlling Interests)

(77,700,292)

(8,043,678)

6,107,441

(6,532,954)

(86,169,483)

Condensed Consolidated Statement of Operations for the Three Months Ended September 30, 2021 (Unaudited)

Capitated Revenue

$

152,276,992

$

$

$

796,003

$

153,072,995

Other Patient Service Revenue

4,243,263

(1,130,303)

3,112,960

Total Operating Revenue

156,520,255

(334,300)

156,185,955

Medical Expenses

161,662,423

(334,300)

161,328,123

Total Operating Expenses

184,643,797

(334,300)

184,309,497

Interest Expense, net

(4,643,254)

2,114,063

(2,529,191)

Total Other Expenses

(6,044,940)

2,114,063

(3,930,877)

Net Loss Attributable to Non-Controlling Interests

(2,801,965)

2,801,965

Net Loss (formerly Net Loss Attributable to Controlling Interests)

(31,366,517)

(2,801,965)

2,114,063

(32,054,419)

Condensed Consolidated Statement of Changes in Members' Deficit for the Nine Months Ended September 30, 2021

Preferred Return at 8% for Class A Units

$

2,779,619

$

$

(2,779,619)

$

$

Net Loss

(85,743,970)

6,107,441

(6,532,954)

(86,169,483)

Balance as of September 30, 2021

(179,246,686)

7,895,167

(43,656,331)

(215,007,850)

Condensed Consolidated Statement of Changes in Members' Deficit for the Three Months Ended September 30, 2021

Preferred Return at 8% for Class A Units

$

962,163

$

$

(962,163)

$

$

Net Loss

(34,168,482)

2,114,063

(32,054,419)

Balance as of September 30, 2021

(179,246,686)

7,895,167

(43,656,331)

(215,007,850)

Condensed Consolidated Statement of Cash Flows for the Nine Months Ended September 30, 2021

Net Loss

$

(85,743,970)

$

$

6,107,441

$

(6,532,954)

$

(86,169,483)

Health Plan Settlements Receivable/Premiums Receivable

(7,417,477)

6,532,954

(884,523)

Class A and Class D Preferred Returns

6,107,441

(6,107,441)

As Previously

    

Network

    

Preferred Returns

    

Class A Units

    

Revenue

    

    

Reported

    

Adjustments

    

Adjustments

    

Adjustments

    

Adjustment

    

As Restated

Condensed Consolidated Balance Sheet as of June 30, 2021 (Unaudited)

Class A Units Subject to Possible Redemption

$

$

$

$

43,656,270

$

$

43,656,270

Class D Units Subject to Possible Redemption

53,784,760

(6,743,207)

47,041,553

Contributed Capital

41,764,270

(41,764,270)

Class A Preferred Returns

5,632,496

(5,632,496)

Accumulated Equity-Based Compensation

2,392,875

(921,092)

1,471,783

Retained Loss from Non-Controlling Interests

 

(23,429,094)

 

23,429,094

 

Accumulated Deficit (formerly Accumulated Loss from Controlling Interest)

(172,576,003)

(23,429,094)

12,375,705

(970,908)

(184,600,300)

Condensed Consolidated Statement of Operations for the Six Months Ended June 30, 2021 (Unaudited)

 

 

 

Capitated Revenue

$

294,860,130

$

$

$

$

(4,335,073)

$

290,525,057

Other Patient Service Revenue

8,122,849

(2,763,520)

5,359,329

Total Operating Revenue

302,982,979

(7,098,593)

295,884,386

Medical Expenses

297,570,662

(565,640)

297,005,022

Total Operating Expenses

335,409,517

(565,640)

334,843,877

Operating Loss

(32,426,538)

(6,532,953)

(38,959,491)

Interest Expense, net

(8,487,374)

3,993,325

(4,494,049)

Total Other Expenses

(19,148,953)

3,993,325

(15,155,628)

Net Loss Attributable to Non-Controlling Interests

(5,241,713)

5,241,713

Net Loss (formerly Net Loss Attributable to Controlling Interests)

 

(46,333,778)

 

(5,241,713)

3,993,325

(6,532,953)

 

(54,115,119)

Condensed Consolidated Statement of Operations for the Three Months Ended June 30, 2021 (Unaudited)

 

 

 

Capitated Revenue

$

147,159,665

$

$

$

$

(5,598,799)

$

141,560,866

Other Patient Service Revenue

4,258,933

(1,233,356)

3,025,577

Total Operating Revenue

151,418,598

(6,832,155)

144,586,443

Medical Expenses

150,679,717

(299,200)

150,380,517

Total Operating Expenses

170,856,707

(299,200)

170,557,507

Operating Loss

(19,438,108)

(6,532,955)

(25,971,063)

Interest Expense, net

(4,406,240)

2,036,476

(2,369,764)

Total Other Expenses

(5,529,823)

2,036,476

(3,493,347)

Net Loss Attributable to Non-Controlling Interests

(1,959,421)

1,959,421

Net Loss (formerly Net Loss Attributable to Controlling Interests)

 

(23,008,510)

 

(1,959,421)

2,036,476

(6,532,955)

 

(29,464,410)

Condensed Consolidated Statement of Changes in Members' Deficit for the Six Months Ended June 30, 2021

 

 

 

Preferred Return at 8% for Class A Units

$

1,817,564

$

$

(1,817,564)

$

$

Net Loss

 

(51,575,491)

 

3,993,325

(6,532,953)

 

(54,115,119)

Balance as of June 30,2021

(146,395,455)

6,743,106

(43,656,170)

(183,308,519)

Condensed Consolidated Statement of Changes in Members' Deficit for the Three Months Ended June 30, 2021

Preferred Return at 8% for Class A Units

$

926,852

$

$

(926,852)

$

$

Net Loss

(24,967,931)

2,036,476

(6,532,955)

(29,464,410)

Balance as of June 30,2021

(146,395,455)

6,743,106

(43,656,170)

(183,308,519)

Condensed Consolidated Statement of Cash Flows for the Six Months Ended June 30, 2021

 

 

 

Net Loss

$

(51,575,491)

$

$

3,993,325

$

(6,532,953)

$

(54,115,119)

Health Plan Settlements Receivable/Premiums Receivable

(5,320,861)

6,532,953

1,212,092

Class A and Class D Preferred Returns

 

3,993,325

 

(3,993,325)

 

*Rounding may cause variances

    

As Previously

    

Network

    

Preferred Returns

    

Class A Units

    

Revenue

    

    

Reported

Adjustment

Adjustment

Adjustments

Adjustment

As Restated

Condensed Consolidated Balance Sheet as of March 31, 2021 (Unaudited)

 

  

 

  

 

  

 

  

 

  

 

  

Health Plan Settlement Receivables

$

3,687,918

$

$

$

$

6,532,954

$

10,220,872

Total Current Assets

78,762,484

6,532,954

85,295,438

Total Assets

94,189,692

6,532,954

100,722,646

Class A Units Subject to Possible Redemption

43,656,270

43,656,270

Class D Units Subject to Possible Redemption

52,675,137

(5,633,583)

47,041,554

Contributed Capital

41,764,270

(41,764,270)

Class A Preferred Returns

4,705,644

(4,705,644)

Accumulated Equity-Based Compensation

1,829,084

(921,092)

907,992

Retained Loss from Non-Controlling Interests

 

(21,469,673)

 

21,469,673

 

 

 

 

Accumulated Deficit (formerly Accumulated Loss from Controlling Interest)

(149,567,493)

(21,469,673)

10,339,227

(970,908)

6,532,954

(155,135,893)

Total Liabilities, Mezzanine Equity & Members' Equity (Deficit)

94,189,692

6,532,954

100,722,646

Condensed Consolidated Statement of Operations for the Three Months Ended March 31, 2021 (Unaudited)

 

  

 

  

 

  

 

  

 

  

 

  

Capitated Revenue

$

147,700,465

$

$

$

$

1,263,725

$

148,964,190

Other Patient Service Revenue

3,863,915

(1,530,165)

2,333,750

Total Operating Revenue

151,564,380

(266,440)

151,297,940

Medical Expenses

146,890,945

(266,440)

146,624,505

Total Operating Expenses

164,552,810

(266,440)

164,286,370

Interest Expense, net

(4,081,134)

1,956,848

(2,124,286)

Total Other Expenses

(13,619,130)

1,956,848

(11,662,282)

Net Loss Attributable to Non-Controlling Interests

 

(3,282,292)

 

3,282,292

 

 

 

Net Loss (formerly Net Loss Attributable to Controlling Interests)

 

(23,325,268)

 

(3,282,292)

 

1,956,848

 

 

 

(24,650,712)

Condensed Consolidated Statements of Changes in Members' Deficit for the 3 Months Ended March 31, 2021

 

  

 

  

 

  

 

  

 

  

 

  

Preferred Return at 8% for Class A Units

$

890,612

$

$

(890,612)

$

$

Net Loss

 

(26,607,560)

 

 

1,956,848

 

 

(24,650,712)

Balance as of March 31,2021

(122,918,168)

5,633,581

(43,656,269)

6,532,954

(154,407,902)

Condensed Consolidated Statements of Cash Flows for the 3 Months Ended March 31, 2021

 

  

 

  

 

  

 

  

  

 

  

Net Loss

$

(26,607,560)

$

$

1,956,848

$

(24,650,712)

Class A and Class D Preferred Returns

 

1,956,848

 

 

(1,956,848)

 

 

*Rounding may cause variances

    

As Previously

    

Network

    

Preferred Returns

    

Class A Units

    

Capitated Revenue

    

    

Reported

Adjustments

Adjustments

Adjustments

Adjustments

As Restated

Condensed Consolidated Statement of Operations for the Nine Months Ended September 30, 2020 (Unaudited)

 

  

 

  

 

  

 

  

 

  

 

  

Capitated Revenue

$

351,018,290

$

$

$

$

1,630,111

$

352,648,401

Other Patient Service Revenue

9,645,990

(2,230,451)

7,415,539

Total Operating Revenue

360,664,280

(600,340)

360,063,940

Medical Expenses

348,258,272

(600,340)

347,657,932

Total Operating Expenses

384,971,257

(600,340)

384,370,917

Interest Expense, net

(6,877,619)

5,577,812

(1,299,807)

Total Other Expenses

(6,877,619)

5,577,812

(1,299,807)

Net Loss Attributable to Non-Controlling Interests

 

(3,449,955)

 

3,449,955

 

 

 

 

Net Loss (formerly Net Loss Attributable to Controlling Interests)

 

(27,734,641)

 

(3,449,955)

 

5,577,812

 

 

 

(25,606,784)

Condensed Consolidated Statement of Operations for the Three Months Ended September 30, 2020 (Unaudited)

 

  

 

  

 

  

 

  

 

  

 

  

Capitated Revenue

$

124,461,275

$

$

$

$

721,351

$

125,182,626

Other Patient Service Revenue

4,379,716

(1,018,851)

3,360,865

Total Operating Revenue

128,840,991

(297,500)

128,543,491

Medical Expenses

127,015,976

(297,500)

126,718,476

Total Operating Expenses

142,355,570

(297,500)

142,058,070

Interest Expense, net

(2,316,579)

1,859,270

(457,309)

Total Other Expenses

(2,316,579)

1,859,270

(457,309)

Net Income Attributable to Non-Controlling Interests

 

875,560

 

(875,560)

 

 

 

 

Net Loss (formerly Net Loss Attributable to Controlling Interests)

 

(16,706,718)

 

875,560

 

1,859,270

 

 

 

(13,971,888)

Condensed Consolidated Statements of Changes in Members' Deficit for the 9 Months Ended September 30, 2020

 

  

 

  

 

  

 

  

 

  

 

  

Preferred Return at 8% for Class A Units

$

2,534,853

$

$

(2,534,853)

$

$

$

Net Loss

 

(31,184,596)

 

 

5,577,812

 

 

 

(25,606,784)

Balance as of September 30, 2020

(84,110,848)

3,558,027

(43,656,271)

(124,209,092)

Condensed Consolidated Statements of Changes in Members' Deficit for the 3 Months Ended September 30, 2020

 

  

 

  

 

  

 

  

 

  

 

  

Preferred Return at 8% for Class A Units

$

840,805

$

$

(840,805)

$

$

$

Net Loss

 

(15,831,158)

 

 

1,859,270

 

 

 

(13,971,888)

Balance as of September 30, 2020

(84,110,848)

3,558,027

(43,656,271)

(124,209,092)

Condensed Consolidated Statements of Cash Flows for the 9 Months Ended September 30, 2020

 

  

 

  

 

  

 

  

 

  

 

  

Net Loss

$

(31,184,596)

$

$

5,577,812

$

$

$

(25,606,784)

Class A and Class D Preferred Returns

 

5,577,812

 

 

(5,577,812)

 

 

 

    

As Previously

    

Network

    

Preferred Returns

    

Class A Units

    

Captital Revenue

    

    

Reported

Adjustments

Adjustments

Adjustments

Adjustments

As Restated

Condensed Consolidated Statement of Operations for the Six Months Ended June 30, 2020 (Unaudited)

 

  

 

  

 

  

 

  

 

  

Capitated Revenue

$

226,557,015

$

$

$

$

908,759

$

227,465,774

Other Patient Service Revenue

5,266,273

(1,211,599)

4,054,674

Total Operating Revenue

231,823,288

(302,840)

231,520,448

Medical Expenses

221,242,295

(302,840)

220,939,455

Total Operating Expenses

242,615,687

(302,840)

242,312,847

Interest Expense, net

(4,561,039)

3,718,542

(842,497)

Total Other Expenses

(4,561,039)

3,718,542

(842,497)

Net Loss Attributable to Non-Controlling Interests

 

(4,325,515)

 

4,325,515

 

 

 

Net Loss (formerly Net Loss Attributable to Controlling Interests)

 

(11,027,923)

 

(4,325,515)

 

3,718,542

 

 

(11,634,896)

Condensed Consolidated Statement of Operations for the Three Months Ended June 30, 2020 (Unaudited)

 

  

 

  

 

  

 

  

 

  

Capitated Revenue

$

114,042,681

$

$

$

$

472,742

$

114,515,423

Other Patient Service Revenue

2,821,811

(624,782)

2,197,029

Total Operating Revenue

116,864,492

(152,040)

116,712,452

Medical Expenses

105,777,973

(152,040)

105,625,933

Total Operating Expenses

121,527,179

(152,040)

121,375,139

Interest Expense, net

(2,249,977)

1,859,271

(390,706)

Total Other Expenses

(2,299,977)

1,859,271

(440,706)

Net Loss Attributable to Non-Controlling Interests

 

(2,774,562)

 

2,774,562

 

 

 

Net Loss (formerly Net Loss Attributable to Controlling Interests)

 

(4,188,102)

 

(2,774,562)

 

1,859,271

 

 

(5,103,393)

Condensed Consolidated Statements of Changes in Members' Deficit for the 6 Months Ended June 30, 2020

 

  

 

  

 

  

 

  

 

  

Preferred Return at 8% for Class A Units

$

1,694,048

$

$

(1,694,048)

$

$

$

Net Loss

 

(15,353,438)

 

 

3,718,542

 

 

(11,634,896)

Balance as of June 30, 2020

(69,173,164)

2,539,562

(43,656,272)

(110,289,874)

Condensed Consolidated Statements of Changes in Members' Deficit for the 3 Months Ended June 30, 2020

 

  

 

  

 

  

 

  

 

  

Preferred Return at 8% for Class A Units

$

847,048

$

$

(847,048)

$

$

$

Net Loss

 

(6,962,664)

 

 

1,859,271

 

 

(5,103,393)

Balance as of June 30, 2020

(69,173,164)

2,539,562

(43,656,272)

(110,289,874)

Condensed Consolidated Statements of Cash Flows for the 6 Months Ended June 30, 2020

 

  

 

  

 

  

 

  

 

  

Net Loss

$

(15,353,438)

$

$

3,718,542

$

$

$

(11,634,896)

Class A and Class D Preferred Returns

 

3,718,542

 

 

(3,718,542)

 

 

As Previously

Network

Preferred Returns

Class A Units

Capitated Revenue

Reported

Adjustments

Adjustments

Adjustments

    

Adjustments

As Restated