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As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 1/20/21 Deerfield Healthcare Tech A… Corp PREM14A 1/19/21 1:8.5M Toppan Merrill/FA |
Document/Exhibit Description Pages Size 1: PREM14A Preliminary Proxy Statement - Merger or HTML 5.02M Acquisition
tm2039207-1_prem14a - none - 115.82476s |
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WHERE YOU CAN FIND MORE INFORMATION
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INDEX TO FINANCIAL STATEMENTS
|
| | | | F-1 | | |
| ANNEX A Business Combination Agreement | | | | | | | |
| ANNEX B Form of Third Amended and Restated Certificate of Incorporation | | | | | | | |
| ANNEX C Form of Amended and Restated Bylaws | | | | | | | |
| ANNEX D 2021 Long-Term Incentive Award Plan | | | | | | | |
| ANNEX E Lock-up Agreement | | | | | | | |
| ANNEX F Registration and Rights Agreement | | | | | | | |
| ANNEX G Consent and Waiver Letter | | | | | | | |
| ANNEX H Form of Subscription Agreement | | | | | | | |
| ANNEX I Form of Deerfield Subscription Agreement | | | | | | | |
| | |
No redemption
Scenario |
| |
Maximum redemption
Scenario |
| ||||||||||||||||||
| | |
Shares
|
| |
%
|
| |
Shares
|
| |
%
|
| ||||||||||||
Ownership of DFHT Common Stock | | | | | | | | | | | | | | | | | | | | | | | | | |
DFHT Public stockholders
|
| | | | 11,015,000 | | | | | | 14% | | | | | | — | | | | | | 0% | | |
Initial stockholders
|
| | | | 3,593,750 | | | | | | 4% | | | | | | 3,593,750 | | | | | | 5% | | |
Deerfield Partners
|
| | | | 3,360,000 | | | | | | 4% | | | | | | 3,360,000 | | | | | | 5% | | |
CareMax equity holders
|
| | | | 11,072,000 | | | | | | 14% | | | | | | 11,072,000 | | | | | | 16% | | |
IMC equity holders
|
| | | | 10,450,000 | | | | | | 13% | | | | | | 10,450,000 | | | | | | 15% | | |
PIPE-Deerfield Partners and sponsor
|
| | | | 10,000,000 | | | | | | 12% | | | | | | 10,000,000 | | | | | | 14% | | |
PIPE-Other investors
|
| | | | 31,000,000 | | | | | | 39% | | | | | | 31,000,000 | | | | | | 45% | | |
Total Shares Outstanding
|
| | | | 80,490,750 | | | | | | 100% | | | | | | 69,475,750 | | | | | | 100% | | |
Sources
|
| | | | | | | |
Uses
|
| | | | | | |
DFHT Cash from Trust
|
| | | $ | 143,793 | | | |
Cash to balance sheet
|
| | | $ | 237,793 | | |
PIPE Investments(1)
|
| | | | 410,000 | | | |
Cash to CareMax and IMC Members
|
| | | | 321,000 | | |
New Debt
|
| | | | 125,000 | | | |
Debt repayment(2)
|
| | | | 78,000 | | |
| | | | | | | | |
SPAC redemptions
|
| | | | — | | |
| | | | | | | | |
Deal expenses
|
| | | | 42,000 | | |
Total Sources
|
| | | $ | 678,793 | | | |
Total Uses
|
| | | $ | 678,793 | | |
Sources
|
| | | | | | | |
Uses
|
| | | | | | |
DFHT Cash from Trust
|
| | | $ | 143,793 | | | |
Cash to balance sheet
|
| | | $ | 127,293 | | |
PIPE Investments(1)
|
| | | | 410,000 | | | |
Cash to Shareholders
|
| | | | 321,000 | | |
New Debt
|
| | | | 125,000 | | | |
Debt repayment(2)
|
| | | | 78,000 | | |
| | | | | | | | |
SPAC redemptions
|
| | | | 110,500 | | |
| | | | | | | | |
Deal expenses
|
| | | | 42,000 | | |
Total Sources
|
| | | $ | 678,793 | | | |
Total Uses
|
| | | $ | 678,793 | | |
| | | | ||||
| | |
(unaudited)
|
| |||
(in thousands, except per share information)
|
| | | | | | |
Statement of Operations Data: | | | | | | | |
Net revenue
|
| | | $ | — | | |
Net income (loss)
|
| | | $ | (227) | | |
Basic and diluted income per public share
|
| | | $ | (0.06) | | |
(in thousands)
|
| | | ||||
| | |
(unaudited)
|
| |||
Balance sheet data: | | | | | | | |
Total Assets
|
| | | $ | 145,033 | | |
Total Long-term obligations, including current portion
|
| | | $ | 4,590 | | |
| | |
Nine months ended
September 30, |
| |
Year ended
December 31, |
| |
Year ended
December 31, |
| |||||||||||||||
| | | | |
2019
|
| |
2019
|
| |
201 8
|
| |||||||||||||
| | |
(unaudited)
|
| | | | | | | | | | | | | |||||||||
(in thousands, except per share information)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Statement of Operations Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net revenue
|
| | | $ | 87,854 | | | | | $ | 65,177 | | | | | $ | 90,602 | | | | | $ | 72,381 | | |
Net income attributable to CareMax
|
| | | $ | 6,354 | | | | | $ | 5,763 | | | | | $ | 5,845 | | | | | $ | 3,486 | | |
| | |
As of September 30,
|
| |
As of December 31,
|
| ||||||||||||
(in thousands)
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
| | |
(unaudited)
|
| | | | | | | | | | | | | |||
Balance sheet data: | | | | | | | | | | | | | | | | | | | |
Total Assets
|
| | | $ | 33,803 | | | | | $ | 24,331 | | | | | $ | 8,399 | | |
Total Long-term obligations, including current portion
|
| | | $ | 21,301 | | | | | $ | 16,753 | | | | | $ | 1,960 | | |
| | |
Nine Months ended
September 30, |
| |
Year ended
December 31, |
| ||||||||||||||||||
| | | | |
2019
|
| |
2019
|
| |
2018
|
| |||||||||||||
(in thousands)
|
| |
(unaudited)
|
| | | | | | | | | | | | | | | | | | | |||
Net cash provided by Operating Activities
|
| | | $ | 5,998 | | | | | $ | 5,354 | | | | | $ | 7,015 | | | | | $ | 585 | | |
Net cash provided by (used in) Investing Activities
|
| | | $ | (5,094) | | | | | $ | (9,772) | | | | | $ | (11,227) | | | | | $ | (935) | | |
Net cash provided by Financing Activities
|
| | | $ | 4,236 | | | | | $ | 10,736 | | | | | $ | 8,367 | | | | | $ | 342 | | |
| | |
Nine months ended
September 30, |
| |
Year ended
December 31, |
| |
Year ended
December 31, |
| |||||||||||||||
(in thousands, except per share information)
|
| |
2020
|
| |
2019
|
| |
2019
|
| |
2018
|
| ||||||||||||
| | |
(unaudited)
|
| | | | | | | | | | | | | |||||||||
Statement of Operations Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net revenue
|
| | | $ | 168,368 | | | | | $ | 146,810 | | | | | $ | 195,045 | | | | | $ | 200,886 | | |
Net income (loss) attributable to IMC
|
| | | $ | (1,436) | | | | | $ | (16,458) | | | | | $ | (16,852) | | | | | $ | (84,587) | | |
| | |
As of September 30,
|
| |
As of December 31,
|
| ||||||||||||
(in thousands)
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
| | |
(unaudited)
|
| | | | | | | | | | | | | |||
Balance sheet data: | | | | | | | | | | | | | | | | | | | |
Total Assets
|
| | | $ | 145,682 | | | | | $ | 139,104 | | | | | $ | 131,322 | | |
Total Long-term obligations, including current portion
|
| | | $ | 96,353 | | | | | $ | 89,139 | | | | | $ | 83,557 | | |
| | |
Nine Months ended
September 30, |
| |
Year ended
December 31, |
| ||||||||||||||||||
(in thousands)
|
| |
2020
|
| |
2019
|
| |
2019
|
| |
2018
|
| ||||||||||||
| | |
(unaudited)
|
| | | | | | | | | | | | | | | | | | | |||
Net cash provided by (used in) Operating Activities
|
| | | $ | 8,403 | | | | | $ | (5,821) | | | | | $ | (4,589) | | | | | $ | (7,318) | | |
Net cash provided by (used in) Investing Activities
|
| | | $ | (1,015) | | | | | $ | (3,769) | | | | | $ | (4,813) | | | | | $ | (2,742) | | |
Net cash provided by (used in) Financing Activities
|
| | | $ | (368) | | | | | $ | 13,116 | | | | | $ | 12,975 | | | | | $ | 6,808 | | |
| | |
Nine Months ended
September 30, |
| |
Year ended
December 31, |
| ||||||||||||||||||
(in thousands)
|
| |
2020
|
| |
2019
|
| |
2019
|
| |
2018
|
| ||||||||||||
| | |
(unaudited)
|
| | | | | | | | | | | | | | | | | | | |||
EBITDA
|
| | | $ | 9,302 | | | | | $ | (5,837) | | | | | $ | (2,869) | | | | | $ | (6,021) | | |
Adjusted EBITDA
|
| | | $ | 13,733 | | | | | $ | 3,230 | | | | | $ | 6,335 | | | | | | (74) | | |
| | |
Nine Months ended
September 30, |
| |
Year ended
December 31, |
| ||||||||||||||||||
| | | | |
2019
|
| |
2019
|
| |
2018
|
| |||||||||||||
| | |
(unaudited)
|
| | | | | | | | | | | | | |||||||||
(in thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Net income (loss) attributable to IMC
|
| | | $ | (1,436) | | | | | $ | (16,458) | | | | | $ | (16,852) | | | | | $ | (84,587) | | |
Income (loss) attributable to non-controlling interest
|
| | |
|
—
|
| | | | | — | | | | | | — | | | | | | | | |
Interest expense
|
| | | | 7,283 | | | | | | 7,011 | | | | | | 9,507 | | | | | | 9,411 | | |
Income tax expense (benefit)
|
| | |
|
—
|
| | | | | — | | | | | | — | | | | | | | | |
Depreciation and amortization expense
|
| | | | 3,358 | | | | | | 3,507 | | | | | | 4,444 | | | | | | 3,714 | | |
Other
|
| | | | 97 | | | | | | 103 | | | | | | 32 | | | | | | 65,441 | | |
EBITDA | | | | | 9,302 | | | | | | (5,837) | | | | | | (2,869) | | | | | | (6,021) | | |
Non-recurring expenses
|
| | | | 4,466 | | | | | | 9,085 | | | | | | 9,224 | | | | | | 6,204 | | |
Discontinued operations
|
| | | | (35) | | | | | | (18) | | | | | | (20) | | | | | | (257) | | |
Adjusted EBITDA
|
| | | $ | 13,733 | | | | | $ | 3,230 | | | | | $ | 6,335 | | | | | $ | (74) | | |
| | |
CareMax Medical
Group, LLC(2)(4) |
| |
DFHT(1)
|
| |
Interamerican
Medical Center Group, LLC (2)(3) |
| |
Scenario One: No Redemptions
|
| |
Scenario Two: Maximum Redemptions
|
| |||||||||||||||||||||||||||||||||||||||
(in thousands)
|
| |
Pro Forma
Adjustments |
| |
Note 4
|
| |
Pro Forma
Combined |
| |
Pro Forma
Adjustments |
| |
Note 4
|
| |
Pro Forma
Combined |
| ||||||||||||||||||||||||||||||||||||
Assets | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||||
Current assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 9,787 | | | | | $ | 988 | | | | | $ | 16,262 | | | | | $ | 201,205 | | | | | | (a)(j) | | | | | $ | 228,242 | | | | | $ | 90,705 | | | | | | (a)(j) | | | | | $ | 117,742 | | |
Accounts receivable, net
|
| | | | 6,829 | | | | | | — | | | | | | 14,777 | | | | | | — | | | | | | | | | | | | 21,606 | | | | | | — | | | | | | | | | | | | 21,606 | | |
Inventory
|
| | | | 13 | | | | | | 0 | | | | | | 0 | | | | | | — | | | | | | | | | | | | 13 | | | | | | — | | | | | | | | | | | | 13 | | |
Prepaid Expenses, net
|
| | | | 134 | | | | | | 252 | | | | | | 1,420 | | | | | | — | | | | | | | | | | | | 1,806 | | | | | | — | | | | | | | | | | | | 1,806 | | |
Due from Related Parties
|
| | | | 230 | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | 230 | | | | | | — | | | | | | | | | | | | 230 | | |
Total current assets
|
| | |
|
16,993
|
| | | |
|
1,240
|
| | | |
|
32,458
|
| | | |
|
201,205
|
| | | | | | | | | |
|
251,897
|
| | | |
|
90,705
|
| | | | | | | | | |
|
141,397
|
| |
Property and Equipment,
net |
| | | | 4,759 | | | | | | — | | | | | | 7,352 | | | | | | — | | | | | | | | | | | | 12,111 | | | | | | — | | | | | | | | | | | | 12,111 | | |
Goodwill
|
| | | | 7,110 | | | | | | — | | | | | | 85,476 | | | | | | 177,338 | | | | | | (j) | | | | | | 269,924 | | | | | | 177,338 | | | | | | (j) | | | | | | 269,924 | | |
Investments held in Trust Account
|
| | | | — | | | | | | 143,793 | | | | | | — | | | | | | (143,793) | | | | | | (b) | | | | | | — | | | | | | (143,793) | | | | | | (b) | | | | | | — | | |
Intangible Asset, net
|
| | | | 6,068 | | | | | | — | | | | | | 18,439 | | | | | | (17,969) | | | | | | (j) | | | | | | 6,538 | | | | | | (17,969) | | | | | | (j) | | | | | | 6,538 | | |
Other Assets
|
| | | | 209 | | | | | | — | | | | | | 1,956 | | | | | | — | | | | | | | | | | | | 2,165 | | | | | | — | | | | | | | | | | | | 2,164 | | |
Total assets
|
| | | $ | 35,139 | | | | | $ | 145,033 | | | | | $ | 145,682 | | | | | $ | 216,781 | | | | | | | | | | | $ | 542,636 | | | | | $ | 106,281 | | | | | | | | | | | $ | 432,136 | | |
Liabilities and Stockholders’/Members’ Equity
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Accounts payable and accrued expenses
|
| | | $ | 1,767 | | | | | $ | 68 | | | | | $ | 12,280 | | | | | $ | 1,279 | | | | | | (j) | | | | | $ | 15,394 | | | | | $ | 1,279 | | | | | | (j) | | | | | $ | 15,394 | | |
Risk Settlements Due to Providers
|
| | | | 222 | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | 222 | | | | | | — | | | | | | | | | | | | 222 | | |
Loan Payable
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | | | | | | | — | | |
Current portion of long-term debt, net
|
| | | | 807 | | | | | | — | | | | | | — | | | | | | 1,118 | | | | | | (j) | | | | | | 1,925 | | | | | | 1,118 | | | | | | | | | | | | 1,925 | | |
Other current liabilities
|
| | | | 140 | | | | | | 79 | | | | | | — | | | | | | 2,045 | | | | | | (j) | | | | | | 2,264 | | | | | | 2,045 | | | | | | (j) | | | | | | 2,264 | | |
Total current liabilities
|
| | | | 2,936 | | | | | | 147 | | | | | | 12,280 | | | | | | 4,442 | | | | | | | | | | | | 19,805 | | | | | | 4,442 | | | | | | | | | | | | 19,805 | | |
Long-term debt, less current portion
|
| | | | 20,494 | | | | | | — | | | | | | 96,341 | | | | | | 8,165 | | | | | | (c)(j) | | | | | | 125,000 | | | | | | 8,165 | | | | | | (c)(j) | | | | | | 125,000 | | |
Contingent consideration
|
| | | | — | | | | | | — | | | | | | — | | | | | | 26,845 | | | | | | (j) | | | | | | 26,845 | | | | | | 26,845 | | | | | | (j) | | | | | | 26,845 | | |
Notes Payable, less current portion
|
| | | | 300 | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | 300 | | | | | | — | | | | | | | | | | | | 300 | | |
Other long-term liabilities
|
| | | | | | | | | | 4,443 | | | | | | 839 | | | | | | (4,499) | | | | | | (d)(j) | | | | | | 784 | | | | | | (4,499) | | | | | | (d)(j) | | | | | | 784 | | |
Total liabilities
|
| | | | 23,730 | | | | | | 4,590 | | | | | | 109,460 | | | | | | 34,953 | | | | | | | | | | | | 172,734 | | | | | | 34,953 | | | | | | | | | | | | 172,734 | | |
Total stockholders’ equity / Commitments and contingencies
|
| | |
|
11,410
|
| | | |
|
140,442
|
| | | |
|
36,223
|
| | | |
|
181,828
|
| | | | | (e)(j) | | | | |
|
369,902
|
| | | |
|
71,328
|
| | | | | (e)(j) | | | | |
|
259,402
|
| |
Total Liabilities and Stockholders’ Equity
|
| | | $ | 35,139 | | | | | $ | 145,033 | | | | | $ | 145,682 | | | | | $ | 216,781 | | | | | | | | | | | $ | 542,636 | | | | | $ | 106,281 | | | | | | | | | | | $ | 432,136 | | |
|
| | |
CareMax Medical
Group, LLC(2)(3) |
| |
DFHT(1)
|
| |
Interamerican
Medical Center Group, LLC(2) |
| |
Scenario One: No Redemptions
|
| |
Scenario Two: Maximum Redemptions
|
| |||||||||||||||||||||||||||||||||||||||
(in thousands, except share data)
|
| |
Pro Forma
Adjustments |
| |
Note 4
|
| |
Pro Forma
Combined |
| |
Pro Forma
Adjustments |
| |
Note 4
|
| |
Pro Forma
Combined |
| ||||||||||||||||||||||||||||||||||||
Revenue: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Capitated Revenue
|
| | | $ | 87,602 | | | | | $ | — | | | | | $ | 159,738 | | | | | $ | — | | | | | | | | | | | $ | 247,340 | | | | | $ | — | | | | | | | | | | | $ | 247,340 | | |
Other Managed Care Services
|
| | | | 251 | | | | | | — | | | | | | 8,477 | | | | | | — | | | | | | | | | | | | 8,728 | | | | | | — | | | | | | | | | | | | 8,728 | | |
Other Revenue
|
| | | | 3,088 | | | | | | — | | | | | | 153 | | | | | | — | | | | | | | | | | | | 3,241 | | | | | | — | | | | | | | | | | | | 3,241 | | |
Net revenue
|
| | | | 90,941 | | | | | | — | | | | | | 168,368 | | | | | | — | | | | | | | | | | | | 259,309 | | | | | | — | | | | | | | | | | | | 259,309 | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Medical Expenses
|
| | | | 51,637 | | | | | | — | | | | | | 138,079 | | | | | | — | | | | | | | | | | | | 189,716 | | | | | | — | | | | | | | | | | | | 189,716 | | |
General and administrative expenses
|
| | | | 31,716 | | | | | | 271 | | | | | | 24,442 | | | | | | — | | | | | | | | | | | | 56,429 | | | | | | — | | | | | | | | | | | | 56,429 | | |
Total costs and expenses
|
| | | | 83,353 | | | | | | 271 | | | | | | 162,521 | | | | | | — | | | | | | | | | | | | 246,145 | | | | | | — | | | | | | | | | | | | 246,145 | | |
Operating (loss) income
|
| | | | 7,588 | | | | | | (271) | | | | | | 5,847 | | | | | | — | | | | | | | | | | | | 13,164 | | | | | | — | | | | | | | | | | | | 13,164 | | |
Interest (income) expense
|
| | | | 1,117 | | | | | | (43) | | | | | | 7,283 | | | | | | (2,775) | | | | | | (f) | | | | | | 5,582 | | | | | | (2,775) | | | | | | (f) | | | | | | 5,582 | | |
Other (income) expense, net
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | | | | | | | — | | |
Income before income taxes
|
| | |
|
6,471
|
| | | |
|
(228)
|
| | | |
|
(1,436)
|
| | | |
|
2,775
|
| | | | | | | | | |
|
7,582
|
| | | |
|
2,775
|
| | | | | | | | | |
|
7,582
|
| |
Income tax expense
|
| | | | — | | | | | | — | | | | | | — | | | | | | 680 | | | | | | (h) | | | | | | 680 | | | | | | 680 | | | | | | (h) | | | | | | 680 | | |
Net income
|
| | |
|
6,471
|
| | | |
|
(228)
|
| | | |
|
(1,436)
|
| | | |
|
2,095
|
| | | | | | | | | |
|
6,902
|
| | | |
|
2,095
|
| | | | | | | | | |
|
6,902
|
| |
Income attributable to noncontrolling interest
|
| | | | 26 | | | | | | — | | | | | | — | | | | | | 255 | | | | | | (g) | | | | | | 281 | | | | | | 295 | | | | | | (g) | | | | | | 321 | | |
Net Income Attributable to
Controlling Interests |
| | | $ | 6,445 | | | | | $ | (228) | | | | | $ | (1,436) | | | | | $ | 1,841 | | | | | | | | | | | $ | 6,621 | | | | | $ | 1,800 | | | | | | | | | | | $ | 6,581 | | |
Pro forma weighted average common shares outstanding – basic and diluted
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | (i) | | | | | | 76,897,000 | | | | | | | | | | | | (i) | | | | | | 65,882,000 | | |
Pro forma net income (loss) per
common share – basic and diluted |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 0.09 | | | | | | | | | | | | | | | | | $ | 0.10 | | |
|
| | |
CareMax Medical
Group, LLC(1)(3) |
| |
DFHT
|
| |
Interamerican
Medical Center Group, LLC(1)(2) |
| |
Scenario One: No Redemptions
|
| |
Scenario Two: Maximum Redemptions
|
| |||||||||||||||||||||||||||||||||||||||
(in thousands, except share data)
|
| |
Pro Forma
Adjustments |
| |
Note 4
|
| |
Pro Forma
Combined |
| |
Pro Forma
Adjustments |
| |
Note 4
|
| |
Pro Forma
Combined |
| ||||||||||||||||||||||||||||||||||||
Revenue: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Capitated Revenue
|
| | | $ | 97,976 | | | | | $ | — | | | | | $ | 186,575 | | | | | $ | — | | | | | | | | | | | $ | 284,551 | | | | | $ | — | | | | | | | | | | | $ | 284,551 | | |
Other Managed Care Services
|
| | | | 492 | | | | | | — | | | | | | 9,765 | | | | | | — | | | | | | | | | | | | 10,256 | | | | | | — | | | | | | | | | | | | 10,256 | | |
Other Revenue
|
| | | | 4,102 | | | | | | — | | | | | | 947 | | | | | | — | | | | | | | | | | | | 5,049 | | | | | | — | | | | | | | | | | | | 5,049 | | |
Net revenue
|
| | | | 102,571 | | | | | | — | | | | | | 197,286 | | | | | | — | | | | | | | | | | | | 299,857 | | | | | | — | | | | | | | | | | | | 299,857 | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Medical Expenses
|
| | | | 58,696 | | | | | | — | | | | | | 168,454 | | | | | | — | | | | | | | | | | | | 227,149 | | | | | | — | | | | | | | | | | | | 227,149 | | |
General and administrative expenses
|
| | | | 35,457 | | | | | | — | | | | | | 35,786 | | | | | | — | | | | | | | | | | | | 71,243 | | | | | | — | | | | | | | | | | | | 71,243 | | |
Total costs and expenses
|
| | | | 94,153 | | | | | | — | | | | | | 204,240 | | | | | | — | | | | | | | | | | | | 298,393 | | | | | | — | | | | | | | | | | | | 298,393 | | |
Operating (loss) income
|
| | | | 8,418 | | | | | | — | | | | | | (6,954) | | | | | | — | | | | | | | | | | | | 1,464 | | | | | | — | | | | | | | | | | | | 1,464 | | |
Interest (income) expense
|
| | | | 720 | | | | | | — | | | | | | 9,507 | | | | | | (2,728) | | | | | | (f) | | | | | | 7,500 | | | | | | (2,728) | | | | | | (f) | | | | | | 7,500 | | |
Other (income) expense, net
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | | | | | | | | — | | |
Income before income taxes
|
| | | | 7,698 | | | | | | — | | | | | | (16,461) | | | | | | (2,728) | | | | | | | | | | | | (6,036) | | | | | | (2,728) | | | | | | | | | | | | (6,036) | | |
Income tax expense
|
| | | | — | | | | | | — | | | | | | — | | | | | | 669 | | | | | | (h) | | | | | | 669 | | | | | | 669 | | | | | | (h) | | | | | | 669 | | |
Net income
|
| | | | 7,698 | | | | | | — | | | | | | (16,461) | | | | | | 2,059 | | | | | | | | | | | | (6,705) | | | | | | 2,059 | | | | | | | | | | | | (6,705) | | |
Income attributable to noncontrolling interest
|
| | | | (173) | | | | | | — | | | | | | — | | | | | | (198) | | | | | | (g) | | | | | | (371) | | | | | | (226) | | | | | | (g) | | | | | | (400) | | |
Net Income Attributable to Controlling Interests
|
| | | $ | 7,871 | | | | | $ | — | | | | | $ | (16,461) | | | | | $ | 2,256 | | | | | | | | | | | $ | (6,334) | | | | | $ | 2,285 | | | | | | | | | | | $ | (6,305) | | |
Pro forma weighted average common shares outstanding – basic and
diluted |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | (i) | | | | | | 76,897,000 | | | | | | | | | | | | (i) | | | | | | 65,882,000 | | |
Pro forma net income (loss) per common share – basic and diluted
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | (0.08) | | | | | | | | | | | | | | | | | $ | (0.10) | | |
|
| | |
DFHT
|
| |||
(in thousands)
|
| | | | | | |
Current assets
|
| | | $ | 1,239 | | |
Cash held in trust
|
| | | | 143,793 | | |
Property and Equipment, net
|
| | | | — | | |
Other Assets
|
| | | | — | | |
Current liabilities
|
| | | | (147) | | |
Other long-term liabilities
|
| | | | (4,443) | | |
Net assets acquired
|
| | | $ | 140,442 | | |
Sources
|
| | | | | | | |
Uses
|
| | | | | | |
DFHT Cash from Trust
|
| | | $ | 143,793 | | | |
Cash to balance sheet
|
| | | $ | 237,793 | | |
PIPE Investments(1)
|
| | | | 410,000 | | | |
Cash to CareMax and IMC Members
|
| | | | 321,000 | | |
New Debt
|
| | | | 125,000 | | | |
Debt repayment(2)
|
| | | | 78,000 | | |
| | | | | | | | |
SPAC redemptions
|
| | | | — | | |
| | | | | | | | |
Deal expenses
|
| | | | 42,000 | | |
Total Sources
|
| | | $ | 678,793 | | | |
Total Uses
|
| | | $ | 678,793 | | |
Sources
|
| | | | | | | |
Uses
|
| | | | | | |
DFHT Cash from Trust
|
| | | $ | 143,793 | | | |
Cash to balance sheet
|
| | | $ | 127,293 | | |
PIPE Investments(1)
|
| | | | 410,000 | | | |
Cash to Shareholders
|
| | | | 321,000 | | |
New Debt
|
| | | | 125,000 | | | |
Debt repayment(2)
|
| | | | 78,000 | | |
| | | | | | | | |
SPAC redemptions
|
| | | | 110,500 | | |
| | | | | | | | |
Deal expenses
|
| | | | 42,000 | | |
Total Sources
|
| | | $ | 678,793 | | | |
Total Uses
|
| | | $ | 678,793 | | |
|
| | | | | |||||||||||||||
(in thousands)
|
| |
As per Historical
Unaudited Financial Statements |
| |
Reclassifications
|
| |
As
Reclassified |
| |||||||||
Liabilities | | | | | | | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 3 | | | | | $ | (3) | | | | | $ | — | | |
Accrued expenses
|
| | | | 65 | | | | | | (65) | | | | | | — | | |
Accounts payable and accrued expenses
|
| | | | — | | | | | | 68 | | | | | | 68 | | |
Franchise tax payable
|
| | | | 79 | | | | | | (79) | | | | | | — | | |
Other current liabilities
|
| | | | — | | | | | | 79 | | | | | | 79 | | |
Deferred underwriting commissions
|
| | | | 4,443 | | | | | | (4,443) | | | | | | — | | |
Other long-term liabilities
|
| | | | — | | | | | | 4,443 | | | | | | 4,443 | | |
(in thousands)
|
| |
As per Historical
Unaudited Financial Statements |
| |
Reclassifications
|
| |
As
Reclassified |
| |||||||||
General and administrative expenses
|
| | | $ | 139 | | | | | $ | 132 | | | | | $ | 271 | | |
General and administrative expenses – related party
|
| | | | 53 | | | | | | (53) | | | | | | — | | |
Franchise tax expense
|
| | | | 79 | | | | | | (79) | | | | | | — | | |
(in thousands)
|
| |
As per Historical
Unaudited Financial Statements |
| |
Reclassifications
|
| |
As
Reclassified |
| |||||||||
General and administrative expenses
|
| | | $ | 31,659 | | | | | $ | (1,117) | | | | | $ | 31,716 | | |
Interest (income) expense
|
| | | | — | | | | | | 1,117 | | | | | | 1,117 | | |
General and administrative expenses (Care Holdings)
|
| | | | 1,174 | | | | | | | | | | | | | | |
(in thousands)
|
| |
As per Historical
Unaudited Financial Statements |
| |
Reclassifications
|
| |
As
Reclassified |
| |||||||||
Assets | | | | | | | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | | | | | | | |
Accounts receivable, net
|
| | | $ | — | | | | | $ | 14,777 | | | | | $ | 14,777 | | |
Capitated plan receivables, net
|
| | | | 10,789 | | | | | | (10,789) | | | | | | — | | |
Other receivables, net
|
| | | | 3,988 | | | | | | (3,988) | | | | | | — | | |
Liabilities | | | | | | | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | | | | | | | |
Accounts payable
|
| | | | 5,709 | | | | | | (5,709) | | | | | | — | | |
Accrued expenses
|
| | | | 3,407 | | | | | | (3,407) | | | | | | — | | |
Other current liabilities
|
| | | | 3,164 | | | | | | (3,164) | | | | | | | | |
Accounts payable and accrued expenses
|
| | | | — | | | | | | (12,280) | | | | | | 12,280 | | |
(in thousands)
|
| |
As per Historical
Unaudited Financial Statements |
| |
Reclassifications
|
| |
As
Reclassified |
| |||||||||
General and administrative expenses
|
| | | $ | 11,121 | | | | | $ | 13,321 | | | | | $ | 24,442 | | |
Non-medical Salaries, wages, and benefits
|
| | | | 9,963 | | | | | | (9,963) | | | | | | — | | |
Amortization of intangibles
|
| | | | 1,220 | | | | | | (1,220) | | | | | | — | | |
Depreciation Expense
|
| | | | 2,138 | | | | | | (2,138) | | | | | | — | | |
(in thousands)
|
| |
As per Historical
Unaudited Financial Statements |
| |
Reclassifications
|
| |
As
Reclassified |
| |||||||||
General and administrative expenses
|
| | | $ | 18,090 | | | | | $ | 17,697 | | | | | $ | 35,786 | | |
Non-medical Salaries, wages, and benefits
|
| | | | 13,239 | | | | | | (13,239) | | | | | | — | | |
Amortization of intangibles
|
| | | | 1,627 | | | | | | (1,627) | | | | | | — | | |
Depreciation Expense
|
| | | | 2,831 | | | | | | (2,831) | | | | | | — | | |
| | |
CareMax Medical
Group, LLC(1) |
| |
Care Holdings
Group, LLC(2) |
| |
Pro Forma
Combined |
| |||||||||
Assets | | | | | | | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 9,578 | | | | | $ | 209 | | | | | $ | 9,787 | | |
Accounts receivable, net
|
| | | | 5,770 | | | | | | 1,059 | | | | | | 6,829 | | |
Inventory
|
| | | | 13 | | | | | | — | | | | | | 13 | | |
Prepaid Expenses, net
|
| | | | 134 | | | | | | — | | | | | | 134 | | |
Due form Related Parties
|
| | | | 230 | | | | | | — | | | | | | 230 | | |
Total current assets
|
| | | | 15,725 | | | | | | 1,268 | | | | | | 16,993 | | |
Property and Equipment, net
|
| | | | 4,717 | | | | | | 42 | | | | | | 4,759 | | |
Goodwill
|
| | | | 7,110 | | | | | | — | | | | | | 7,110 | | |
Investments held in Trust Account
|
| | | | — | | | | | | — | | | | | | — | | |
Intangible Assets, net
|
| | | | 6,068 | | | | | | — | | | | | | 6,068 | | |
Other Assets
|
| | | | 183 | | | | | | 26 | | | | | | 209 | | |
Total assets
|
| | | $ | 33,803 | | | | | $ | 1,336 | | | | | $ | 35,139 | | |
Liabilities and Members’ Equity | | | | | | | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 1,252 | | | | | $ | 243 | | | | | $ | 1,495 | | |
Accrued expenses
|
| | | | 163 | | | | | | — | | | | | | 163 | | |
Accrued Interest Payable
|
| | | | 109 | | | | | | — | | | | | | 109 | | |
Risk Settlements Due to Providers
|
| | | | 222 | | | | | | — | | | | | | 222 | | |
Current portion of long-term debt, net
|
| | | | 807 | | | | | | — | | | | | | 807 | | |
Other current liabilities
|
| | | | — | | | | | | 140 | | | | | | 140 | | |
Total current liabilities
|
| | | | 2,553 | | | | | | 383 | | | | | | 2,936 | | |
Long-term debt, less current portion
|
| | | | 20,494 | | | | | | — | | | | | | 20,494 | | |
Notes Payable, less current portion
|
| | | | — | | | | | | 300 | | | | | | 300 | | |
Total liabilities
|
| | | | 23,047 | | | | | | 683 | | | | | | 23,730 | | |
Units (no par value, 300 authorized, issued and outstanding as of September 30, 2020)
|
| | | | 223 | | | | | | — | | | | | | 223 | | |
Members’ equity
|
| | | | 10,635 | | | | | | 653 | | | | | | 11,288 | | |
Members’ equity-controlling interest
|
| | | | 10,858 | | | | | | 653 | | | | | | 11,511 | | |
Non-controlling interest
|
| | | | (102) | | | | | | — | | | | | | (102) | | |
Total Members’ equity
|
| | | | 10,756 | | | | | | 653 | | | | | | 11,409 | | |
Total Liabilities and Members’ Equity
|
| | | $ | 33,803 | | | | | $ | 1,336 | | | | | $ | 35,139 | | |
(in thousands, except unit data)
|
| |
CareMax Medical
Group, LLC(1) |
| |
Care Holdings LLC(2)
|
| |
Pro Forma
Combined |
| |||||||||
Revenue: | | | | | | | | | | | | | | | | | | | |
Capitated Revenue
|
| | | $ | 87,603 | | | | | $ | — | | | | | $ | 87,603 | | |
Other Managed Care Services
|
| | | | 251 | | | | | | — | | | | | | 251 | | |
Other Revenue
|
| | | | — | | | | | | 3,088 | | | | | | 3,088 | | |
Net revenue
|
| | | | 87,854 | | | | | | 3,088 | | | | | | 90,941 | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | |
Medical Expenses
|
| | | | 49,841 | | | | | | 1,796 | | | | | | 51,637 | | |
General and administrative expenses
|
| | | | 30,542 | | | | | | 1,174 | | | | | | 31,716 | | |
Total costs and expenses
|
| | | | 80,382 | | | | | | 2,970 | | | | | | 83,353 | | |
Operating (loss) income
|
| | | | 7,471 | | | | | | 118 | | | | | | 7,589 | | |
Interest (income) expense
|
| | | | 1,117 | | | | | | — | | | | | | 1,117 | | |
Other (income) expense, net
|
| | | | — | | | | | | | | | | | | 0 | | |
Income before income taxes
|
| | | | 6,354 | | | | | | 118 | | | | | | 6,472 | | |
Income tax expense
|
| | | | — | | | | | | — | | | | | | — | | |
Net income
|
| | | | 6,354 | | | | | | 118 | | | | | | 6,472 | | |
Net Income attributable to noncontrolling interest
|
| | | | 26 | | | | | | — | | | | | | 26 | | |
Net Income Attributable to Controlling Interests
|
| | | $ | 6,328 | | | | | $ | 118 | | | | | $ | 6,445 | | |
Weighted-average Common Units Outstanding
|
| | | | 200 | | | | | | 100 | | | | | | 300 | | |
Net Income per Unit – Basic & Diluted
|
| | | | | | | | | | | | | | | $ | 21,092 | | |
(in thousands, except unit data)
|
| |
CareMax Medical
Group, LLC |
| |
New Life
Health Group (Tamarac) |
| |
Care Holdings
Group, LLC |
| |
Pro Forma
Combined |
| ||||||||||||
Revenue: | | | | | | | | | | | | | | | | | | | | | | | | | |
Capitated Revenue
|
| | | $ | 90,110 | | | | | $ | 7,867 | | | | | | | | | | | $ | 97,976 | | |
Other Managed Care Services
|
| | | | 492 | | | | | | — | | | | | | — | | | | | | 492 | | |
Other Revenue
|
| | | | — | | | | | | — | | | | | | 4,102 | | | | | | 4,102 | | |
Net revenue
|
| | | | 90,602 | | | | | | 7,867 | | | | | | 4,102 | | | | | | 102,571 | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Medical Expenses
|
| | | | 51,622 | | | | | | 5,237 | | | | | | 1,836 | | | | | | 58,696 | | |
General and administrative expenses
|
| | | | 32,414 | | | | | | 1,259 | | | | | | 1,785 | | | | | | 35,457 | | |
Total costs and expenses
|
| | | | 84,036 | | | | | | 6,495 | | | | | | 3,622 | | | | | | 94,153 | | |
Operating (loss) income
|
| | | | 6,566 | | | | | | 1,371 | | | | | | 481 | | | | | | 8,418 | | |
Interest (income) expense
|
| | | | 720 | | | | | | — | | | | | | — | | | | | | 720 | | |
Income before income taxes
|
| | | | 5,845 | | | | | | 1,371 | | | | | | 481 | | | | | | 7,698 | | |
Income tax expense
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Net income
|
| | | | 5,845 | | | | | | 1,371 | | | | | | 481 | | | | | | 7,698 | | |
Loss attributable to noncontrolling interest
|
| | | | (173) | | | | | | — | | | | | | — | | | | | | (173) | | |
Net Income Attributable to Controlling Interests
|
| | | $ | 6,019 | | | | | $ | 1,371 | | | | | $ | 481 | | | | | $ | 7,871 | | |
Weighted-average Common Units Outstanding
|
| | | | 200 | | | | | | | | | | | | 100 | | | | | | 300 | | |
Net Income per Unit – Basic & Diluted
|
| | | | | | | | | | | | | | | | | | | | | $ | 26,236 | | |
| | |
Interamerican
Medical Center Group, LLC(1) |
| | | |||||||||||||
(in thousands, except unit data)
|
| |
Pro Forma
Adjustments |
| |
Pro Forma
Combined |
| ||||||||||||
Revenue: | | | | | | | | | | | | | | | | | | | |
Capitated Revenue
|
| | | $ | 159,738 | | | | | $ | — | | | | | $ | 159,738 | | |
Other Managed Care Services
|
| | | | 8,477 | | | | | | — | | | | | | 8,477 | | |
Other Revenue
|
| | | | 153 | | | | | | — | | | | | | 153 | | |
Net revenue
|
| | | | 168,368 | | | | | | — | | | | | | 168,368 | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | |
Medical Expenses
|
| | | | 138,079 | | | | | | — | | | | | | 138,079 | | |
General and administrative expenses
|
| | | | 24,442 | | | | | | — | | | | | | 24,442 | | |
Total costs and expenses
|
| | | | 162,521 | | | | | | — | | | | | | 162,521 | | |
Operating (loss) income
|
| | | | 5,847 | | | | | | — | | | | | | 5,847 | | |
Interest (income) expense
|
| | | | 7,283 | | | | | | 7,283 | | | | | | | | |
Other (income) expense, net
|
| | | | — | | | | | | — | | | | | | — | | |
Income before income taxes
|
| | | | (1,436) | | | | | | — | | | | | | (1,436) | | |
Income tax expense
|
| | | | — | | | | | | — | | | | | | — | | |
Net income
|
| | | | (1,436) | | | | | | — | | | | | | (1,436) | | |
Income attributable to noncontrolling interest
|
| | | | — | | | | | | — | | | | | | | | |
Net Income Attributable to Controlling Interests
|
| | | $ | (1,436) | | | | | $ | — | | | | | $ | (1,436) | | |
Pro forma weighted average common shares outstanding – basic and diluted
|
| | | | | | | | | | | | | | | | 100 | | |
Pro forma net income (loss) per common share – basic and
diluted |
| | | | | | | | | | | | | | | $ | (14,364) | | |
(in thousands, except unit data)
|
| |
Interamerican
Medical Center Group, LLC(1) |
| |
Sunset
Cardiology P>L.(2) |
| |
Carlos
Iglesias M.D, P.A.(2) |
| |
Pro Forma
Combined |
| ||||||||||||
Revenue: | | | | | | | | | | | | | | | | | | | | | | | | | |
Capitated Revenue
|
| | | $ | 184,334 | | | | | $ | 259 | | | | | $ | 1,982 | | | | | $ | 186,575 | | |
Other Managed Care Services
|
| | | | 9,765 | | | | | | — | | | | | | — | | | | | | 9,765 | | |
Other Revenue
|
| | | | 947 | | | | | | — | | | | | | — | | | | | | 947 | | |
Net revenue
|
| | | | 195,045 | | | | | | 259 | | | | | | 1,982 | | | | | | 197,286 | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Medical Expenses
|
| | | | 167,063 | | | | | | 98 | | | | | | 1,292 | | | | | | 168,454 | | |
General and administrative expenses
|
| | | | 17,993 | | | | | | 66 | | | | | | 31 | | | | | | 18,090 | | |
Non-medical Salaries, wages, and benefits
|
| | | | 12,890 | | | | | | 194 | | | | | | 155 | | | | | | 13,239 | | |
Amortization of intangibles
|
| | | | 1,627 | | | | | | — | | | | | | — | | | | | | 1,627 | | |
Depreciation Expense
|
| | | | 2,817 | | | | | | 14 | | | | | | — | | | | | | 2,831 | | |
Impairment of Goodwill
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total costs and expenses
|
| | | | 202,390 | | | | | | 372 | | | | | | 1,478 | | | | | | 204,240 | | |
Operating (loss) income
|
| | | | (7,345) | | | | | | (112) | | | | | | 503 | | | | | | (6,954) | | |
Interest (income) expense
|
| | | | 9,507 | | | | | | — | | | | | | — | | | | | | 9,507 | | |
Other (income) expense, net
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Income before income taxes
|
| | | | (16,852) | | | | | | (112) | | | | | | 503 | | | | | | (16,461) | | |
Income tax expense
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Net income
|
| | | | (16,852) | | | | | | (112) | | | | | | 503 | | | | | | (16,461) | | |
Income attributable to noncontrolling interest
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Net Income Attributable to Controlling
Interests |
| | | $ | (16,852) | | | | | $ | (112) | | | | | $ | 503 | | | | | $ | (16,461) | | |
Pro forma weighted average units outstanding – basic and diluted
|
| | | | | | | | | | | | | | | | | | | | | | 100 | | |
Pro forma net income (loss) per
unit – basic and diluted |
| | | | | | | | | | | | | | | | | | | | | $ | (164,612) | | |
(in thousands)
|
| |
Long-term
Debt |
| |||
Repayment on historical IMC and CareMax long-term debt(1)
|
| | | $ | (116,835) | | |
New long-term debt entered into by CareMax(2)
|
| | | | 125,000 | | |
Exchange of CareMax equity for debt
|
| | | | — | | |
Total | | | | $ | 8,165 | | |
| | |
Total Shares
|
| |
Shares of Class B
|
| | | | | | | |
Shares of Class A
|
| | | | | | | | | | |||||||||
Legacy CareMax shareholders
|
| | | | 11,072,000 | | | | | | — | | | | | | | | | | | | 11,072,000 | | | | | | | | | | ||
Legacy IMC Medical shareholders
|
| | | | 10,450,000 | | | | | | | | | | | | | | | | | | 10,450,000 | | | | | | | | | | ||
Legacy DFHT stockholders
|
| | | | 17,968,750 | | | | | | 3,593,750 | | | | | | | | | | | | 14,375,000 | | | | | | | | | | ||
Shares issued as part of PIPE
|
| | | | 41,000,000 | | | | | | — | | | | | | | | | | | | 76,897,000 | | | | | | | | | | ||
| | | | | 80,490,750 | | | | | | 3,593,750 | | | | | | 4.5% | | | | | | 76,897,000 | | | | | | 95.5% | | | | ||
|
(in thousands except share data)
|
| |
Total Equity
100% |
| |
Noncontrolling
Interest (4.5%) |
| |
Controlling
Interest (95.5%) |
| |||||||||
Historical CareMax stockholders’ equity
|
| | | $ | 11,409 | | | | | $ | 509 | | | | | $ | 10,900 | | |
IMC stockholders’ equity restated through acquisition
accounting |
| | | | 171,051 | | | | | | 7,697 | | | | | | 163,353 | | |
Historical DFHT stockholders’ equity/contingent shares
|
| | | | 140,442 | | | | | | 6,270 | | | | | | 134,172 | | |
Consideration paid to IMC and CareMax unit holders
|
| | | | (321,000) | | | | | | (14,332) | | | | | | (306,668) | | |
PIPE investment
|
| | | | 410,000 | | | | | | 18,306 | | | | | | 391,694 | | |
Payment of transaction costs
|
| | | | (42,000) | | | | | | (1,875) | | | | | | (40,125) | | |
Total stockholders’ equity
|
| | | | 369,902 | | | | | | 16,576 | | | | | | 353,326 | | |
| | |
Total Shares
|
| |
Shares of Class B
|
| | | | | | | |
Shares of Class A
|
| | | | | | | | | | |||||||||
Legacy Caremax shareholders
|
| | | | 11,072,000 | | | | | | — | | | | | | | | | | | | 11,072,000 | | | | | | | | | | ||
Legacy IMC Medical shareholders
|
| | | | 10,450,000 | | | | | | | | | | | | | | | | | | 10,450,000 | | | | | | | | | | ||
Legacy DFHT stockholders
|
| | | | 6,953,750 | | | | | | 3,593,750 | | | | | | | | | | | | 3,360,000 | | | | | | | | | | ||
Shares issued as part of PIPE
|
| | | | 41,000,000 | | | | | | — | | | | | | | | | | | | 41,000,000 | | | | | | | | | | ||
| | | | | 69,475,750 | | | | | | 3,593,750 | | | | | | 5% | | | | | | 65,882,000 | | | | | | 95% | | | |
(in thousands except share data)
|
| |
Total Equity
100% |
| |
Noncontrolling
Interest (5%) |
| |
Controlling
Interest (95%) |
| |||||||||
Historical CareMax stockholders’ equity
|
| | | $ | 11,409 | | | | | $ | 590 | | | | | $ | 10,819 | | |
IMC stockholders’ equity restated through acquisition accounting
|
| | | | 171,051 | | | | | | 8,553 | | | | | | 162,498 | | |
Historical DFHT stockholders’ equity/contingent shares
|
| | | | 29,942 | | | | | | 1,549 | | | | | | 28,394 | | |
Consideration paid to IMC and CareMax unit holders
|
| | | | (321,000) | | | | | | (16,604) | | | | | | (304,396) | | |
PIPE investment
|
| | | | 410,000 | | | | | | 21,208 | | | | | | 388,792 | | |
Payment of transaction costs
|
| | | | (42,000) | | | | | | (2,173) | | | | | | (39,827) | | |
Total stockholders’ equity
|
| | | | 259,402 | | | | | | 13,123 | | | | | | 246,279 | | |
(in thousands)
|
| | | | | ||||||||
Interest expense from term debt
|
| | | $ | 5,625 | | | | | $ | 7,500 | | |
Total interest expense
|
| | | | 5,625 | | | | | | 7,500 | | |
Reversal of historical interest expense
|
| | | | (8,400) | | | | | | (10,228) | | |
Pro forma adjustment
|
| | | $ | (2,775) | | | | | $ | (2,728) | | |
(in thousands)
|
| | | | | ||||||||
Pro-forma income (loss) before taxes
|
| | | $ | 7,582 | | | | | $ | (6,036) | | |
Less: income (loss) attributable to legacy CareMax noncontrolling interest
|
| | | | 26 | | | | | | (173) | | |
Net proforma Income (loss) before taxes
|
| | | | 7,608 | | | | | | (6,209) | | |
Noncontrolling interest proforma adjustment (at 5%)
|
| | | | 255 | | | | | | (198) | | |
Add: income attributable to legacy CareMax noncontrolling interest
|
| | | | 26 | | | | | | (173) | | |
Proforma income (loss) attributable to noncontrolling interest
|
| | | $ | 281 | | | | | $ | (371) | | |
|
(in thousands)
|
| | | | | ||||||||
Pro-forma income (loss) before taxes
|
| | | $ | 7,582 | | | | | $ | (6,036) | | |
Less: income (loss) attributable to legacy Caremax noncontrolling interest
|
| | | | 26 | | | | | | (173) | | |
Net proforma Income (loss) before taxes
|
| | | | 7,608 | | | | | | (6,209) | | |
Noncontrolling interest proforma adjustment (at 5%)
|
| | | | 295 | | | | | | (227) | | |
Add: income attributable to legacy CareMax noncontrolling interest
|
| | | | 26 | | | | | | (173) | | |
Proforma income (loss) attributable to noncontrolling interest
|
| | | $ | 321 | | | | | $ | (400) | | |
| | |
Purchase price allocation
|
| |||
Cash
|
| | | $ | 18,509 | | |
Accounts receivable
|
| | | | 14,777 | | |
Other current assets
|
| | | | 1,420 | | |
Property, plant & equipment
|
| | | | 7,352 | | |
Identifiable Intangible Assets: | | | | | | | |
Tradenames/trademarks
|
| | | | 470 | | |
Other assets
|
| | | | 1,956 | | |
Accounts payable and accrued expenses
|
| | | | (9,116) | | |
Other current liabilities
|
| | | | (2,045) | | |
Other long term liabilities
|
| | | | (783) | | |
Net Assets Acquired
|
| | | | 32,540 | | |
Excess of Consideration over Net Assets Acquired
|
| | | | 262,814 | | |
Total Consideration
|
| | | $ | 295,354 | | |
(in thousands, except per share information)
|
| |
DFHT
|
| |
CareMax
|
| |
IMC
|
| |
Pro Forma
Assuming No Redemptions |
| |
Pro Forma
Assuming Maximum Redemptions |
| |||||||||||||||
Nine Months Ended September 30, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Stockholders’/members’ equity (deficit) and commitments and contingencies
|
| | | $ | 140,442 | | | | | $ | 11,409 | | | | | $ | 36,223 | | | | | $ | 369,902 | | | | | $ | 259,402 | | |
Net income (loss) attributable to controlling interest
|
| | | $ | (228) | | | | | $ | 6,445 | | | | | $ | (1,436) | | | | | $ | 6,621 | | | | | $ | 6,581 | | |
Weighted average shares outstanding – basic and diluted
|
| | | | 14,375,000 | | | | | | — | | | | | | — | | | | | | 76,897,000 | | | | | | 65,882,000 | | |
Stockholders’/members’ equity (deficit) per share – basic and diluted
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 4.81 | | | | | $ | 3.94 | | |
Basic and diluted net income (loss) per share
|
| | | $ | (0.02) | | | | | $ | — | | | | | $ | — | | | | | $ | 0.09 | | | | | $ | 0.10 | | |
Cash dividends per share – basic and diluted
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Year Ended December 31, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income (loss) attributable to controlling interest
|
| | | $ | — | | | | | $ | 7,871 | | | | | $ | (16,461) | | | | | $ | (6,334) | | | | | $ | (6,305) | | |
Basic and diluted net income (loss) per share
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | (0.08) | | | | | $ | (0.10) | | |
Cash dividends per share – basic and diluted
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
($ in millions)
|
| |
Pro Forma
2019 |
| |
Pro Forma
2020E |
| |
2021E
|
| |
2022E
|
| |
2023E
|
| |||||||||||||||
Total Revenue
|
| | | $ | 290.8 | | | | | $ | 360.0 | | | | | $ | 512.4 | | | | | $ | 751.7 | | | | | $ | 992.0 | | |
Total Expenses
|
| | | | 275.3 | | | | | | 320.8 | | | | | | 450.3 | | | | | | 653.3 | | | | | | 856.0 | | |
Adjusted EBITDA – Base
|
| | | | 15.5 | | | | | | 39.1 | | | | | | 48.0 | | | | | | 58.4 | | | | | | 70.0 | | |
Adjusted EBITDA – Projected Acquisitions
|
| | | | — | | | | | | — | | | | | | 14.0 | | | | | | 40.0 | | | | | | 65.9 | | |
Total Adjusted EBITDA
|
| | | | 15.5 | | | | | | 39.1 | | | | | | 62.0 | | | | | | 98.4 | | | | | | 135.9 | | |
Total Pro Forma Adjustments
|
| | | | — | | | | | | 6.9 | | | | | | 4.3 | | | | | | 9.9 | | | | | | 16.4 | | |
Pro Forma Adjusted EBITDA
|
| | | | 15.5 | | | | | | 46.1 | | | | | | 66.3 | | | | | | 108.3 | | | | | | 152.3 | | |
$ in mm
|
| |
FY19
|
| |||
Net Income(1)
|
| | | ($ | 10.9) | | |
Depreciation & Amortization
|
| | | | 5.9 | | |
Interest Expense
|
| | | | 10.2 | | |
Non-Recurring Expenses(2)
|
| | | | 10.3 | | |
Prior Period Adjustments(3)
|
| | | | (2.2) | | |
Historical Acquired Businesses Contribution
|
| | | | 2.2 | | |
Adj. EBITDA
|
| | | | 15.5 | | |
Sources
|
| | | | | | | |
Uses
|
| | | | | | |
DFHT Cash from Trust
|
| | | $ | 143,793 | | | |
Cash to balance sheet
|
| | | $ | 237,793 | | |
PIPE Investments(1)
|
| | | | 410,000 | | | |
Cash to CareMax and IMC Members
|
| | | | 321,000 | | |
New Debt
|
| | | | 125,000 | | | |
Debt repayment
|
| | | | 78,000 | | |
| | | | | | | | |
SPAC redemptions
|
| | | | — | | |
| | | | | | | | |
Deal expenses
|
| | | | 42,000 | | |
Total Sources
|
| | | $ | 678,793 | | | |
Total Uses
|
| | | $ | 678,793 | | |
Sources
|
| | | | | | | |
Uses
|
| | | | | | |
DFHT Cash from Trust
|
| | | $ | 143,793 | | | |
Cash to balance sheet
|
| | | $ | 127,293 | | |
PIPE Investments(1)
|
| | | | 410,000 | | | |
Cash to Shareholders
|
| | | | 321,000 | | |
New Debt
|
| | | | 125,000 | | | |
Debt repayment
|
| | | | 78,000 | | |
| | | | | | | | |
SPAC redemptions
|
| | | | 110,500 | | |
| | | | | | | | |
Deal expenses
|
| | | | 42,000 | | |
Total Sources
|
| | | $ | 678,793 | | | |
Total Uses
|
| | | $ | 678,793 | | |
|
Name
|
| |
Age
|
| |
Position
|
|
Richard Barasch | | |
67
|
| | Executive Chairman | |
Steven Hochberg | | |
59
|
| |
President, Chief Executive Officer and Director
|
|
Christopher Wolfe | | |
40
|
| | Chief Financial Officer and Secretary | |
Dr. Peter J. Fitzgerald | | |
63
|
| | Director | |
Dr. Linda Grais | | |
64
|
| | Director | |
Hon. Dr. David J. Shulkin | | |
60
|
| | Director | |
(in thousands, except per share information)
|
| | | ||||
| | |
(unaudited)
|
| |||
Statement of Operations Data: | | | | | | | |
Net revenue
|
| | | $ | — | | |
Net income (loss)
|
| | | $ | (227) | | |
Basic and diluted income per public share
|
| | | $ | (0.06) | | |
(in thousands)
|
| | | ||||
| | |
(unaudited)
|
| |||
Balance sheet data: | | | | | | | |
Total Assets
|
| | | $ | 145,033 | | |
Total Long-term obligations, including current portion
|
| | | $ | 4,590 | | |
|
Primary Care Physician
|
| | Leads the clinical care team and implements CareMax’s comprehensive, high touch approach to health care | |
|
Physician’s Assistant or Registered Nurse
|
| | Educate and manage clinical needs between visits and provide group education on chronic disease management | |
|
Medical Assistant
|
| | Manage clinical workflows and act as guides for patient visits | |
| Phlebotomist | | | Front Desk | | | Access Representative | |
| Pharmacy Technician | | | Referral Coordinator | | | Community Sales Representative | |
| Administrator | | | Transportation Dispatches | | |
Wellness Staff & Massage Therapist
|
|
| | |
Nine months ended
September 30, |
| |
Year ended
December 31, |
| ||||||||||||||||||
(in thousands, except per share information)
|
| |
2020
|
| |
2019
|
| |
2019
|
| |
2018
|
| ||||||||||||
| | |
(unaudited)
|
| | | | | | | | | | | | | |||||||||
Statement of Operations Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net revenue
|
| | | $ | 87,854 | | | | | $ | 65,177 | | | | | $ | 90,602 | | | | | $ | 72,381 | | |
Net income attributable to CareMax
|
| | | $ | 6,354 | | | | | $ | 5,763 | | | | | $ | 5,845 | | | | | $ | 3,486 | | |
| | | | |
As of December 31,
|
| |||||||||||||
(in thousands)
|
| |
2019
|
| |
2018
|
| ||||||||||||
| | |
(unaudited)
|
| | | | | | | | | | | | | |||
Balance sheet data: | | | | | | | | | | | | | | | | | | | |
Total Assets
|
| | | $ | 33,803 | | | | | $ | 24,331 | | | | | $ | 8,399 | | |
Total Long-term obligations, including current portion
|
| | | $ | 21,301 | | | | | $ | 16,753 | | | | | $ | 1,960 | | |
| | |
Nine Months ended
September 30, |
| |
Year ended
December 31, |
| ||||||||||||||||||
(in thousands)
|
| |
2020
|
| |
2019
|
| |
2019
|
| |
2018
|
| ||||||||||||
| | |
(unaudited)
|
| | | | | | | | | | | | | | | | | | | |||
Net cash provided by Operating Activities
|
| | | $ | 5,998 | | | | | $ | 5,354 | | | | | $ | 7,015 | | | | | $ | 585 | | |
Net cash provided by (used in) Investing Activities
|
| | | $ | (5,094) | | | | | $ | (9,772) | | | | | $ | (11,227) | | | | | $ | (935) | | |
Net cash provided by Financing Activities
|
| | | $ | 4,236 | | | | | $ | 10,736 | | | | | $ | 8,367 | | | | | $ | 342 | | |
| | |
Patients
|
| |
Increase
|
| |
%
|
| |||||||||
2017
|
| | | | 3,027 | | | | | | | | | | | | | | |
2018
|
| | | | 3,602 | | | | | | 575 | | | | | | 19% | | |
2019
|
| | | | 4,821 | | | | | | 1,219 | | | | | | 34% | | |
2020
|
| | | | 6,036 | | | | | | 1,215 | | | | | | 25% | | |
| | |
2018
|
| |
2019
|
| |
2020
|
| |||||||||
Centers
|
| | | | 11 | | | | | | 11 | | | | | | 11 | | |
Markets
|
| | | | 1 | | | | | | 1 | | | | | | 1 | | |
Patients
|
| | | | 3,600 | | | | | | 4,800 | | | | | | 6,000 | | |
At-risk
|
| | | | 99.3% | | | | | | 99.5% | | | | | | 99.7% | | |
Fee for service
|
| | | | 0.7% | | | | | | 0.5% | | | | | | 0.3% | | |
| | |
2018
|
| |
2019
|
| |
2020
|
| |||||||||
Centers
|
| | | | 11 | | | | | | 11 | | | | | | 11 | | |
Markets
|
| | | | 1 | | | | | | 1 | | | | | | 1 | | |
Patients(1) | | | | | 3,600 | | | | | | 4,800 | | | | | | 6,000 | | |
At-risk
|
| | | | 99.3% | | | | | | 99.5% | | | | | | 99.7% | | |
Fee for service
|
| | | | 0.7% | | | | | | 0.5% | | | | | | 0.3% | | |
Patient contribution
|
| | | $ | 7,698 | | | | | $ | 8,018 | | | | | $ | 6,294 | | |
Platform contribution
|
| | | $ | 994 | | | | | $ | 1,333 | | | | | $ | 1,196 | | |
| | | | | | | | | | | | | | | | ||||||||||
| | | | |
2019
|
| |
$ change
|
| |
% change
|
| |||||||||||||
($ millions)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating Expense
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Medical expenses
|
| | | $ | 47.1 | | | | | $ | 31.9 | | | | | $ | 15.2 | | | | | | 48% | | |
Other medical expenses
|
| | | | 2.8 | | | | | | 3.9 | | | | | | (1.1) | | | | | | -28% | | |
Direct medical salaries, wages & benefits
|
| | | | 0.7 | | | | | | 0.7 | | | | | | 0.0 | | | | | | 0% | | |
Salaries, wages & benefits
|
| | | | 8.6 | | | | | | 5.8 | | | | | | 2.8 | | | | | | 47% | | |
General & administrative
|
| | | | 20.2 | | | | | | 16.1 | | | | | | 4.1 | | | | | | 25% | | |
Depreciation and Amortization
|
| | | | 1.1 | | | | | | 0.6 | | | | | | 0.5 | | | | | | 86% | | |
Total Operating Expense
|
| | | $ | 80.5 | | | | | $ | 59.0 | | | | | $ | 21.5 | | | | | | 36% | | |
| | |
Payments due by period
|
| | | | | | | | | | | | | | | | | | | |||||||||
($ millions)
|
| |
Total
|
| |
Less than
1 year |
| |
1 – 3 years
|
| |
3 – 5 years
|
| |
More than
5 years |
| |||||||||||||||
Notes Payable, principal(1)
|
| | | $ | 21.3 | | | | | $ | 0.8 | | | | | $ | 3.7 | | | | | $ | 16.8 | | | | | $ | — | | |
Notes Payable, interest(1)
|
| | | | 4.7 | | | | | | 0.3 | | | | | | 3.6 | | | | | | 0.8 | | | | | | — | | |
Operating lease obligations
|
| | | | 26.0 | | | | | | 2.2 | | | | | | 7.3 | | | | | | 2.1 | | | | | | 14.4 | | |
Total
|
| | | $ | 52.0 | | | | | $ | 3.3 | | | | | $ | 14.6 | | | | | $ | 19.7 | | | | | $ | 14.4 | | |
| | |
Year Ended
December 31, |
| | | | | | | | | | | | | |||||||||
(in millions)
|
| |
2019
|
| |
2018
|
| |
$ change
|
| |
% change
|
| ||||||||||||
Operating Expense
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Medical expenses
|
| |
$47.9
|
| |
$40.4
|
| |
$7.5
|
| |
18.6%
|
| ||||||||||||
Other medical expenses
|
| | | | 2.5 | | | | | | 2.6 | | | | | | (0.1) | | | | | | -3.8% | | |
Direct medical salaries, wages & benefits
|
| | | | 1.2 | | | | | | 1.2 | | | | | | (0.0) | | | | | | 0.00% | | |
Salaries, wages & benefits
|
| | | | 10.7 | | | | | | 8.4 | | | | | | 2.3 | | | | | | 27.4% | | |
General & administrative
|
| | | | 20.7 | | | | | | 15.6 | | | | | | 5.1 | | | | | | 32.7% | | |
Depreciation and Amortization
|
| | | | 1.0 | | | | | | 0.6 | | | | | | 0.4 | | | | | | 66.6% | | |
Total Operating Expense
|
| | | $ | 84.0 | | | | | $ | 68.8 | | | | | $ | 15.2 | | | | | | 22.1% | | |
| | |
Payments due by period
|
| |||||||||||||||||||||||||||
($ millions)
|
| |
Total
|
| |
Less than
1 year |
| |
1 – 3 years
|
| |
3 – 5 years
|
| |
More than
5 years |
| |||||||||||||||
Notes Payable, principal(1)
|
| | | $ | 17.4 | | | | | $ | 0.7 | | | | | $ | 2.0 | | | | | $ | 14.7 | | | | | $ | 0 | | |
Notes Payable, interest(1)
|
| | | | 5.6 | | | | | | 1.3 | | | | | | 3.6 | | | | | | 0.8 | | | | | | — | | |
Operating lease obligations
|
| | | | 16.0 | | | | | | 2.1 | | | | | | 4.1 | | | | | | 3.5 | | | | | | 6.3 | | |
Total
|
| | | $ | 39.0 | | | | | $ | 4.1 | | | | | $ | 9.7 | | | | | $ | 19.0 | | | | | $ | 6.3 | | |
|
Primary Care Physician
|
| | Leads the clinical care team and implements IMC’s comprehensive, high touch approach to health care | |
|
Physician’s Assistant or Registered Nurse
|
| | Educate and manage clinical needs between visits and provide group education on chronic disease management | |
|
Medical Assistant
|
| | Manage clinical workflows and act as guides for patient visits | |
| Phlebotomist | | | Front Desk | | | Access Representative | |
| Referral Coordinator | | | Community Sales Representative | | |
Wellness Staff & Massage Therapist
|
|
| Administrator | | | Transportation Dispatches | | | | |
| | |
Nine months ended
September 30, |
| | | | | |||||||||||||||||
(in thousands, except per share information)
|
| |
2020
|
| |
2019
|
| ||||||||||||||||||
| | |
(unaudited)
|
| | | | | | | | | | | | | |||||||||
Statement of Operations Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net revenue
|
| | | $ | 168,368 | | | | | $ | 146,810 | | | | | $ | 195,045 | | | | | $ | 200,886 | | |
Net income (loss) attributable to IMC
|
| | | $ | (1,436) | | | | | $ | (16,458) | | | | | $ | (16,852) | | | | | $ | (84,587) | | |
| | | | |
As of December 31,
|
| |||||||||||||
(in thousands)
|
| |
2019
|
| |
2018
|
| ||||||||||||
| | |
(unaudited)
|
| | | | | | | | | | | | | |||
Balance sheet data: | | | | | | | | | | | | | | | | | | | |
Total Assets
|
| | | $ | 145,682 | | | | | $ | 139,104 | | | | | $ | 131,322 | | |
Total Long-term obligations, including current portion
|
| | | $ | 96,353 | | | | | $ | 89,139 | | | | | $ | 83,557 | | |
| | |
Nine Months ended
September 30, |
| |
Year ended
December 31, |
| ||||||||||||||||||
(in thousands)
|
| |
2020
|
| |
2019
|
| |
2019
|
| |
2018
|
| ||||||||||||
| | |
(unaudited)
|
| | | | | | | | | | | | | | | | | | | |||
Net cash provided by (used in) Operating Activities
|
| | | $ | 8,403 | | | | | $ | (5,821) | | | | | $ | (4,589) | | | | | $ | (7,318) | | |
Net cash provided by (used in) Investing Activities
|
| | | $ | (1,015) | | | | | $ | (3,769) | | | | | $ | (4,813) | | | | | $ | (2,742) | | |
Net cash provided by (used in) Financing Activities
|
| | | $ | (368) | | | | | $ | 13,116 | | | | | $ | 12,975 | | | | | $ | 6,808 | | |
| | |
Nine Months ended
September 30, |
| |
Year ended
December 31, |
| ||||||||||||||||||
(in thousands)
|
| |
2020
|
| |
2019
|
| |
2019
|
| |
2018
|
| ||||||||||||
| | |
(unaudited)
|
| | | | | | | | | | | | | | | | | | | |||
EBITDA
|
| | | $ | 9,302 | | | | | $ | (5,837) | | | | | $ | (2,869) | | | | | $ | (6,021) | | |
Adjusted EBITDA
|
| | | $ | 13,733 | | | | | $ | 3,230 | | | | | $ | 6,335 | | | | | | (74) | | |
| | |
Nine Months ended
September 30, |
| |
Year ended
December 31, |
| ||||||||||||||||||
| | | | |
2019
|
| |
2019
|
| |
2018
|
| |||||||||||||
| | |
(unaudited)
|
| | | | | | | | | | | | | |||||||||
(in thousands)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Net income (loss) attributable to IMC
|
| | | $ | (1,436) | | | | | $ | (16,458) | | | | | $ | (16,852) | | | | | $ | (84,587) | | |
Income (loss) attributable to non-controlling interest
|
| | |
|
—
|
| | | | | — | | | | | | — | | | | | | | | |
Interest expense
|
| | | | 7,283 | | | | | | 7,011 | | | | | | 9,507 | | | | | | 9,411 | | |
Income tax expense (benefit)
|
| | |
|
—
|
| | | | | — | | | | | | — | | | | | | | | |
Depreciation and amortization expense
|
| | | | 3,358 | | | | | | 3,507 | | | | | | 4,444 | | | | | | 3,714 | | |
Other
|
| | | | 97 | | | | | | 103 | | | | | | 32 | | | | | | 65,441 | | |
EBITDA | | | | | 9,302 | | | | | | (5,837) | | | | | | (2,869) | | | | | | (6,021) | | |
Non-recurring expenses
|
| | | | 4,466 | | | | | | 9,085 | | | | | | 9,224 | | | | | | 6,204 | | |
Discontinued operations
|
| | | | (35) | | | | | | (18) | | | | | | (20) | | | | | | (257) | | |
Adjusted EBITDA
|
| | | $ | 13,733 | | | | | $ | 3,230 | | | | | $ | 6,335 | | | | | $ | (74) | | |
Patient Count as of
|
| |
Dec-18
|
| |
Dec-19
|
| |
Sep-20
|
| |||||||||
Medicare
|
| | | | 10,900 | | | | | | 10,300 | | | | | | 10,300 | | |
Medicaid
|
| | | | 14,300 | | | | | | 11,500 | | | | | | 22,700 | | |
Commercial
|
| | | | 7,000 | | | | | | 5,000 | | | | | | 15,000 | | |
Total Count
|
| | | | 32,200 | | | | | | 26,800 | | | | | | 48,000 | | |
MCREM Count as of
|
| |
Dec-18
|
| |
Dec-19
|
| |
Sep-20
|
| |||||||||
Medicare
|
| | | | 10,900 | | | | | | 10,300 | | | | | | 10,300 | | |
Medicaid
|
| | | | 4,800 | | | | | | 3,800 | | | | | | 7,600 | | |
Commercial
|
| | | | 2,300 | | | | | | 1,700 | | | | | | 5,000 | | |
Total MCREM
|
| | | | 18,000 | | | | | | 15,800 | | | | | | 22,900 | | |
Nine Months Ending (in thousands)
|
| | | | | |
Year-over-Year
|
| |||||||||||
Net Income (Loss)
|
| | | $ | (16,458) | | | | | $ | (1,436) | | | | | $ | 15,022 | | |
Definitional Items | | | | | | | | | | | | | | | | | | | |
Interest Expense
|
| | | | 7,011 | | | | | | 7,283 | | | | | | 272 | | |
Depreciation & Amortization
|
| | | | 3,507 | | | | | | 3,358 | | | | | | (149) | | |
Other Expenses
|
| | | | 103 | | | | | | 97 | | | | | | (6) | | |
Total Definitional Items
|
| | | | 10,621 | | | | | | 10,738 | | | | | | 117 | | |
EBITDA | | | | $ | (5,837) | | | | | $ | 9,302 | | | | | $ | 15,139 | | |
Non-Recurring Expenses
|
| | | $ | 9,085 | | | | | $ | 4,466 | | | | | $ | (4,619) | | |
Discontinued Operations
|
| | | | (18) | | | | | | (35) | | | | | | (17) | | |
Total Management Adjustments
|
| | | $ | 9,067 | | | | | $ | 4,431 | | | | | $ | (4,636) | | |
Adjusted EBITDA
|
| | | $ | 3,230 | | | | | $ | 13,733 | | | | | $ | 10,503 | | |
|
| | |
Nine Months Ended
September 30, |
| | | | | | | | | | | | | |||||||||
| | | | |
2019
|
| |
$ change
|
| |
% change
|
| |||||||||||||
| | |
(in millions)
|
| | | | | | | | | | | | | |||||||||
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
External medical services under global capitation
|
| | | $ | 117.3 | | | | | $ | 103.2 | | | | | $ | 14.1 | | | | | | 13.7% | | |
Other medical expenses
|
| | | | 5.3 | | | | | | 6.6 | | | | | | (1.3) | | | | | | -19.7% | | |
| | |
Nine Months Ended
September 30, |
| | | | | | | | | | | | | |||||||||
| | | | |
2019
|
| |
$ change
|
| |
% change
|
| |||||||||||||
| | |
(in millions)
|
| | | | | | | | | | | | | |||||||||
Direct medical salaries, wages & benefits
|
| | | | 15.5 | | | | | | 17.9 | | | | | | (2.4) | | | | | | -13.4% | | |
Salaries, wages & benefits
|
| | | | 10.0 | | | | | | 9.7 | | | | | | 0.3 | | | | | | 3.1% | | |
General & administrative
|
| | | | 11.1 | | | | | | 15.4 | | | | | | (4.3) | | | | | | -27.9% | | |
Depreciation and amortization
|
| | | | 3.3 | | | | | | 3.5 | | | | | | (0.2) | | | | | | -5.7% | | |
Total operating expenses
|
| | | $ | 162.5 | | | | | $ | 156.3 | | | | | $ | 6.2 | | | | | | 4.0% | | |
| | |
Year EndedDecember 31,
|
| | | | | | | | | | | | | |||||||||
| | | | |
2018
|
| |
$ change
|
| |
% change
|
| |||||||||||||
| | |
in millions
|
| | | | | | | | | | | | | | | | | | | |||
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
External medical services under global capitation
|
| | | $ | 135.5 | | | | | $ | 146.4 | | | | | $ | (10.9) | | | | | | -7.4% | | |
Other medical expenses
|
| | | | 8.4 | | | | | | 7.8 | | | | | | 0.6 | | | | | | 7.7% | | |
Direct medical salaries, wages & benefits
|
| | | | 23.2 | | | | | | 22.1 | | | | | | 1.1 | | | | | | 5.0% | | |
Salaries, wages & benefits
|
| | | | 12.9 | | | | | | 14.8 | | | | | | (1.9) | | | | | | -12.8% | | |
General & administrative
|
| | | | 18.0 | | | | | | 15.8 | | | | | | 2.2 | | | | | | 13.9% | | |
Amortization of intangibles
|
| | | | 1.6 | | | | | | 1.6 | | | | | | — | | | | | | 0.0% | | |
Depreciation and amortization
|
| | | | 2.8 | | | | | | 2.1 | | | | | | 0.7 | | | | | | 33.3% | | |
Impairment of goodwill and intangible assets
|
| | | | — | | | | | | 65.6 | | | | | | (65.6) | | | | | | -100.0% | | |
Total operating expenses
|
| | | $ | 202.4 | | | | | $ | 276.2 | | | | | $ | (73.8) | | | | | | -26.7% | | |
| | | | | | | | |
Payments due by period
|
| |||||||||||||||
| | |
Total
|
| |
1 – 3 years
|
| |
3 – 5 years
|
| |
More than
5 years |
| ||||||||||||
Notes Payable-principal(1)
|
| | | $ | 81.0 | | | | | $ | — | | | | | $ | 81.0 | | | | | $ | — | | |
Notes Payable-paid in kind interest(1)
|
| | | | 12.1 | | | | | | — | | | | | | 12.1 | | | | | | — | | |
Operating lease obligations
|
| | | | 9.1 | | | | | | 7.5 | | | | | | 1.3 | | | | | | 0.3 | | |
Other obligations
|
| | | | 1.0 | | | | | | 1.0 | | | | | | — | | | | | | — | | |
Total
|
| | | $ | 103.2 | | | | | $ | 8.5 | | | | | $ | 94.4 | | | | | $ | 0.3 | | |
| | | | | | | | |
Payments due by period
|
| |||||||||||||||||||||
| | |
Total
|
| |
Less than
1 year |
| |
1 – 3 years
|
| |
3 – 5 years
|
| |
More than
5 years |
| |||||||||||||||
Notes Payable-principal(1)
|
| | | $ | 81.0 | | | | | $ | — | | | | | $ | — | | | | | $ | 81.0 | | | | | $ | — | | |
Notes Payable-paid in kind interest(1)
|
| | | | 18.6 | | | | | | — | | | | | | — | | | | | | 18.6 | | | | | | — | | |
Operating lease obligations
|
| | | | 6.8 | | | | | | 0.8 | | | | | | 5.2 | | | | | | 0.5 | | | | | | 0.3 | | |
Other obligations
|
| | | | 0.6 | | | | | | 0.3 | | | | | | 0.3 | | | | | | — | | | | | | — | | |
Total
|
| | | $ | 107.0 | | | | | $ | 1.1 | | | | | $ | 5.5 | | | | | $ | 100.1 | | | | | $ | 0.3 | | |
Name
|
| |
Age
|
| |
Position(s)
|
|
Richard Barasch | | |
67
|
| | Executive Chairman | |
Carlos A. de Solo | | |
42
|
| | Director; Chief Executive Officer | |
Hon. Dr. David J. Shulkin | | |
61
|
| | Director | |
Randy Simpson | | |
51
|
| | Director | |
[ ] | | |
[ ]
|
| | Director | |
[ ] | | |
[ ]
|
| | Director | |
[ ] | | |
[ ]
|
| | Director | |
William C. Lamoreaux | | |
58
|
| | Executive Vice President | |
Kevin Wirges | | |
41
|
| | Chief Financial Officer | |
Alberto de Solo | | |
43
|
| | Chief Operating Officer | |
Name and
PrincipalPosition |
| |
Year
|
| |
Salary
($)(1) |
| |
Bonus
($) |
| |
Stock
Awards ($) |
| |
Option
Awards ($) |
| |
Non-Equity
Incentive Plan Compensation ($) |
| |
Nonqualified
Deferred Compensation Earnings ($) |
| |
All Other
Compensation ($)(2)(3) |
| |
Total
($) |
| |||||||||||||||||||||||||||
Carlos de Solo
|
| | | | 2020 | | | | | $ | 111,946 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | $ | 2,688,000 | | | | | $ | 2,799,946 | | |
President and
Chief Executive Officer of CareMax |
| | | | 2019 | | | | | $ | 48,050 | | | | | | — | | | | | | — | | | | | | —(3) | | | | | | — | | | | | | — | | | | | $ | 3,014,290 | | | | | $ | 3,062,340 | | |
Alberto de Solo
|
| | | | 2020 | | | | | $ | 111,946 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | $ | 1,430,000 | | | | | $ | 1,541,946 | | |
Chief Financial Officer of CareMax
|
| | | | 2019 | | | | | $ | 48,050 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | $ | 1,504,310 | | | | | $ | 1,552,360 | | |
| | | | 2020 | | | | | $ | 111,946 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | $ | 875,000 | | | | | $ | 986,946 | | | |
Chief Compliance Officer and General Counsel of CareMax
|
| | | | 2019 | | | | | $ | 48,050 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | $ | 835,000 | | | | | $ | 883,450 | | |
| | |
CareMax
Distribution |
| |
CareMax Holdings
|
| |
Managed
Healthcare Partners Management Payment |
| |
Total
($) |
| ||||||||||||||||||
| | |
Management
Payment |
| |
Distribution
|
| ||||||||||||||||||||||||
Carlos de Solo
|
| | | $ | 2,183,000 | | | | | $ | 220,000 | | | | | $ | 45,000 | | | | | $ | 240,000 | | | | | $ | 2,688,000 | | |
Alberto de Solo
|
| | | $ | 925,000 | | | | | $ | 220,000 | | | | | $ | 45,000 | | | | | $ | 240,000 | | | | | $ | 1,430,000 | | |
Joseph DeVera
|
| | | $ | 370,000 | | | | | $ | 220,000 | | | | | $ | 45,000 | | | | | $ | 240,000 | | | | | $ | 875,000 | | |
| | |
Option Awards
|
| |||||||||||||||||||||||||||
Name
|
| |
Number of
Securities Underlying Unexercised Options (#) Exercisable |
| |
Number of
Securities Underlying Unexercised Options (#) Unexercisable |
| |
Equity
Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#) |
| |
Option
Exercise Price ($) |
| |
Option
Expiration Date |
| |||||||||||||||
Carlos de Solo
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Alberto de Solo
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Name and PrincipalPosition
|
| |
Year
|
| |
Salary
($) |
| |
Bonus
($)(1) |
| |
Equity Awards
($)(2) |
| |
All Other
Compensation ($)(2) |
| |
Total
($)(2) |
| |||||||||||||||
William Lamoreaux,
|
| | | | 2020 | | | | | | 450,000 | | | | | | 270,000 | | | | | | | | | | | | | | | | | |
Chief ExecutiveOfficer
|
| | | | 2019 | | | | | | 450,000 | | | | | | 162,000 | | | | | | — | | | | | | — | | | | ||
Kevin Wirges,
|
| | | | 2020 | | | | | | 275,000 | | | | | | 165,000 | | | | | | | | | | | | | | | | ||
Chief FinancialOfficer
|
| | | | 2019 | | | | | | 275,000 | | | | | | 78,375 | | | | | | — | | | | | | — | | | |
| | | | | | | | |
Stock Awards
|
| |||||||||
Name
|
| |
Grant Date
|
| |
Number of Shares
or Units of Stock That Have Not Vested (#)(1) |
| |
Market Value of
Shares or Units of Stock That Have Not Vested ($)(2) |
| |||||||||
William Lamoreaux,
Chief ExecutiveOfficer |
| | | | 3/11/2020 | | | | | | 16,129,629 | | | | | | — | | |
Kevin Wirges,
Chief Financial Officer |
| | | | 3/11/2020 | | | | | | 3,072,309 | | | | | | — | | |
Name
|
| |
Year
|
| |
Fees
earned ($) |
| |
Stock
Awards ($)(1) |
| |
Total
($) |
| ||||||
John Randazzo
|
| | | | 2020 | | | | | | 45,000 | | | | | ||||
Ardy Pallin
|
| | | | 2020 | | | | | | 45,000 | | | | |
| | |
Pre-Business Combination
|
| | | | ||||||||||||||||||||||||||||||
| | |
DFHT Common Stock
|
| |
Successor Post-Business Combination
|
| ||||||||||||||||||||||||||||||
Name and Address of Beneficial Owner(1)
|
| |
Number of
Shares Beneficially Owned(2) |
| |
% of
Outstanding Shares of DFHT |
| |
Assuming
No Redemption |
| |
Assuming 100%
Redemption |
| ||||||||||||||||||||||||
|
Number of
Shares |
| |
%
|
| |
Number of
Shares |
| |
%
|
| ||||||||||||||||||||||||||
Directors and Executive Officers of DFHT:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 50,000 | | | | | | * | | | | | | 50,000 | | | | | | * | | | | | | 50,000 | | | | | | * | | | |
Steven Hochberg(3) (4)
|
| | | | 3,368,750 | | | | | | 18.75% | | | | | | 6,685,417 | | | | | | 7.75% | | | | | | 6,685,417 | | | | | | 8.88% | | |
| | | | 50,000 | | | | | | * | | | | | | 50,000 | | | | | | * | | | | | | 50,000 | | | | | | * | | | |
| | | | 25,000 | | | | | | * | | | | | | 25,000 | | | | | | * | | | | | | 25,000 | | | | | | * | | | |
| | | | 25,000 | | | | | | * | | | | | | 25,000 | | | | | | * | | | | | | 25,000 | | | | | | * | | | |
| | | | 25,000 | | | | | | * | | | | | | 25,000 | | | | | | * | | | | | | 25,000 | | | | | | * | | | |
All Directors and Executive Officers of DFHT as a Group (6 Individuals)
|
| | | | 3,543,750 | | | | | | 20.0% | | | | | | 6,860,417 | | | | | | 7.95% | | | | | | 6,860,417 | | | | | | 9.11% | | |
Directors and Executive Officers of Combined Company After Consummation of the Business Combination:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 50,000 | | | | | | * | | | | | | 50,000 | | | | | | * | | | | | | 50,000 | | | | | | * | | | |
| | | | — | | | | | | — | | | | | | 6,078,954 | | | | | | 7.05% | | | | | | 6,078,954 | | | | | | 8.08% | | | |
Alberto de Solo(6)
|
| | | | — | | | | | | — | | | | | | 2,748,837 | | | | | | 3.19% | | | | | | 2,748,837 | | | | | | 3.65% | | |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | |
Kevin Wirges(7)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | | | 25,00 | | | | | | * | | | | | | 25,00 | | | | | | * | | | | | | 25,00 | | | | | | * | | | |
Randy Simpson(7)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Five Percent Holders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Entities affiliated with Deerfield Management Company, L.P.(3)
|
| | | | 6,778,750 | | | | | | 37.73% | | | | | | 20,367,417 | | | | | | 22.6% | | | | | | 20,367,417 | | | | | | 25.7% | | |
DFHTA Sponsor LLC(3)(4)
|
| | | | 3,368,750 | | | | | | 18.75% | | | | | | 6,685,417 | | | | | | 7.42% | | | | | | 6,685,417 | | | | | | 8.45% | | |
O.M.InvestmentGroup,Inc.(8) | | | | | — | | | | | | — | | | | | | 6,078,954 | | | | | | 7.05% | | | | | | 6,078,954 | | | | | | 8.08% | | |
Eminence Holdings LLC(9)
|
| | | | | | | | | | | | | | | | 4,000,000 | | | | | | 4.64% | | | | | | 4,000,000 | | | | | | 5.31% | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Redemption Date
(period to expiration of warrants) |
| |
Fair Market Value of Class A Common Stock
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||
|
≤10.00
|
| |
11.00
|
| |
12.00
|
| |
13.00
|
| |
14.00
|
| |
15.00
|
| |
16.00
|
| |
17.00
|
| |
≥18.00
|
| |||||||||||||||||||||||||||||
60 months
|
| | | | 0.261 | | | | | | 0.281 | | | | | | 0.297 | | | | | | 0.311 | | | | | | 0.324 | | | | | | 0.337 | | | | | | 0.348 | | | | | | 0.358 | | | | | | 0.361 | | |
57 months
|
| | | | 0.257 | | | | | | 0.277 | | | | | | 0.294 | | | | | | 0.310 | | | | | | 0.324 | | | | | | 0.337 | | | | | | 0.348 | | | | | | 0.358 | | | | | | 0.361 | | |
54 months
|
| | | | 0.252 | | | | | | 0.272 | | | | | | 0.291 | | | | | | 0.307 | | | | | | 0.322 | | | | | | 0.335 | | | | | | 0.347 | | | | | | 0.357 | | | | | | 0.361 | | |
51 months
|
| | | | 0.246 | | | | | | 0.268 | | | | | | 0.287 | | | | | | 0.304 | | | | | | 0.320 | | | | | | 0.333 | | | | | | 0.346 | | | | | | 0.357 | | | | | | 0.361 | | |
48 months
|
| | | | 0.241 | | | | | | 0.263 | | | | | | 0.283 | | | | | | 0.301 | | | | | | 0.317 | | | | | | 0.332 | | | | | | 0.344 | | | | | | 0.356 | | | | | | 0.361 | | |
45 months
|
| | | | 0.235 | | | | | | 0.258 | | | | | | 0.279 | | | | | | 0.298 | | | | | | 0.315 | | | | | | 0.330 | | | | | | 0.343 | | | | | | 0.356 | | | | | | 0.361 | | |
42 months
|
| | | | 0.228 | | | | | | 0.252 | | | | | | 0.274 | | | | | | 0.294 | | | | | | 0.312 | | | | | | 0.328 | | | | | | 0.342 | | | | | | 0.355 | | | | | | 0.361 | | |
39 months
|
| | | | 0.221 | | | | | | 0.246 | | | | | | 0.269 | | | | | | 0.290 | | | | | | 0.309 | | | | | | 0.325 | | | | | | 0.340 | | | | | | 0.354 | | | | | | 0.361 | | |
36 months
|
| | | | 0.213 | | | | | | 0.239 | | | | | | 0.263 | | | | | | 0.285 | | | | | | 0.305 | | | | | | 0.323 | | | | | | 0.339 | | | | | | 0.353 | | | | | | 0.361 | | |
33 months
|
| | | | 0.205 | | | | | | 0.232 | | | | | | 0.257 | | | | | | 0.280 | | | | | | 0.301 | | | | | | 0.320 | | | | | | 0.337 | | | | | | 0.352 | | | | | | 0.361 | | |
30 months
|
| | | | 0.196 | | | | | | 0.224 | | | | | | 0.250 | | | | | | 0.274 | | | | | | 0.297 | | | | | | 0.316 | | | | | | 0.335 | | | | | | 0.351 | | | | | | 0.361 | | |
27 months
|
| | | | 0.185 | | | | | | 0.214 | | | | | | 0.242 | | | | | | 0.268 | | | | | | 0.291 | | | | | | 0.313 | | | | | | 0.332 | | | | | | 0.350 | | | | | | 0.361 | | |
24 months
|
| | | | 0.173 | | | | | | 0.204 | | | | | | 0.233 | | | | | | 0.260 | | | | | | 0.285 | | | | | | 0.308 | | | | | | 0.329 | | | | | | 0.348 | | | | | | 0.361 | | |
21 months
|
| | | | 0.161 | | | | | | 0.193 | | | | | | 0.223 | | | | | | 0.252 | | | | | | 0.279 | | | | | | 0.304 | | | | | | 0.326 | | | | | | 0.347 | | | | | | 0.361 | | |
18 months
|
| | | | 0.146 | | | | | | 0.179 | | | | | | 0.211 | | | | | | 0.242 | | | | | | 0.271 | | | | | | 0.298 | | | | | | 0.322 | | | | | | 0.345 | | | | | | 0.361 | | |
15 months
|
| | | | 0.130 | | | | | | 0.164 | | | | | | 0.197 | | | | | | 0.230 | | | | | | 0.262 | | | | | | 0.291 | | | | | | 0.317 | | | | | | 0.342 | | | | | | 0.361 | | |
12 months
|
| | | | 0.111 | | | | | | 0.146 | | | | | | 0.181 | | | | | | 0.216 | | | | | | 0.250 | | | | | | 0.282 | | | | | | 0.312 | | | | | | 0.339 | | | | | | 0.361 | | |
9 months
|
| | | | 0.090 | | | | | | 0.125 | | | | | | 0.162 | | | | | | 0.199 | | | | | | 0.237 | | | | | | 0.272 | | | | | | 0.305 | | | | | | 0.336 | | | | | | 0.361 | | |
6 months
|
| | | | 0.065 | | | | | | 0.099 | | | | | | 0.137 | | | | | | 0.178 | | | | | | 0.219 | | | | | | 0.259 | | | | | | 0.296 | | | | | | 0.331 | | | | | | 0.361 | | |
3 months
|
| | | | 0.034 | | | | | | 0.065 | | | | | | 0.104 | | | | | | 0.150 | | | | | | 0.197 | | | | | | 0.243 | | | | | | 0.286 | | | | | | 0.326 | | | | | | 0.361 | | |
0 months
|
| | | | — | | | | | | — | | | | | | 0.042 | | | | | | 0.115 | | | | | | 0.179 | | | | | | 0.233 | | | | | | 0.281 | | | | | | 0.323 | | | | | | 0.361 | | |
| | |
Page
|
| |||
Financial Statements of Deerfield Healthcare Technology Acquisitions Corp. | | | | | | | |
| | | | F-3 | | | |
| | | | F-4 | | | |
| | | | F-5 | | | |
| | | | F-6 | | | |
| | | | F-7 | | |
| Audited Financial Statements of Deerfield Healthcare Technology Acquisitions Corp. | | | | | | | |
| | | | | F-19 | | | |
| | | | | F-20 | | | |
| | | | | F-21 | | | |
| | | | | F-22 | | | |
| | | | | F-23 | | | |
| | | | | F-24 | | |
|
Unaudited Condensed Combined Interim Financial Statements of CareMax Medical Group, LLC and
Affiliates |
| | | | | | |
| | | | | F-33 | | | |
| | | | | F-34 | | | |
| | | | | F-35 | | | |
| | | | | F-36 | | | |
| | | | | F-38 | | | |
| Audited Combined Financial Statements of CareMax Medical Group, LLC and Affiliates | | | | | | | |
| | | | | F-50 | | | |
| | | | | F-51 | | | |
| | | | | F-52 | | | |
| | | | | F-53 | | | |
| | | | | F-54 | | | |
| | | | | F-55 | | |
|
Unaudited Condensed Consolidated Financial Statements of Interamerican Medical Center Group, LLC and Subsidiaries
|
| | | | | | |
| | | | | F-73 | | | |
| | | | | F-74 | | | |
| | | | | F-75 | | | |
| | | | | F-76 | | | |
| | | | | F-77 | | | |
|
Audited Consolidated Financial Statements of Interamerican Medical Center Group, LLC and Subsidiaries
|
| | | | | | |
| | | | | F-94 | | | |
| | | | | F-95 | | | |
| | | | | F-96 | | | |
| | | | | F-97 | | | |
| | | | | F-98 | | | |
| | | | | F-99 | | |
| Assets: | | | | | | | |
| Current assets: | | | | | | | |
|
Cash
|
| | | $ | 987,590 | | |
|
Prepaid expenses
|
| | | | 251,529 | | |
|
Total current assets
|
| | | | 1,239,119 | | |
|
Investments held in Trust Account
|
| | | | 143,793,410 | | |
|
Total assets
|
| | | $ | 145,032,529 | | |
| Liabilities and Stockholders’ Equity: | | | | | | | |
| Current liabilities: | | | | | | | |
|
Accounts payable
|
| | | $ | 2,987 | | |
|
Accrued expenses
|
| | | | 65,000 | | |
|
Franchise tax payable
|
| | | | 78,954 | | |
|
Total current liabilities
|
| | | | 146,941 | | |
|
Deferred underwriting commissions
|
| | | | 4,443,250 | | |
|
Total liabilities
|
| | | | 4,590,191 | | |
| Commitments and Contingencies | | | | | | | |
|
Class A common stock, 13,544,233 shares subject to possible redemption at $10.00 per share
|
| | | | 135,442,330 | | |
| Stockholders’ Equity: | | | | | | | |
|
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding
|
| | | | — | | |
|
Class A common stock, $0.0001 par value; 100,000,000 shares authorized; 830,767 shares issued and outstanding (excluding 13,544,233 shares subject to possible redemption)
|
| | | | 83 | | |
|
Class B common stock, $0.0001 par value; 10,000,000 shares authorized; 3,593,750 shares issued and outstanding
|
| | | | 359 | | |
|
Additional paid-in capital
|
| | | | 5,226,447 | | |
|
Accumulated deficit
|
| | | | (226,881) | | |
|
Total stockholders’ equity
|
| | | | 5,000,008 | | |
|
Total Liabilities and Stockholders’ Equity
|
| | | $ | 145,032,529 | | |
| | |
For the Three Months Ended
September 30, 2020 |
| | | |||||||
General and administrative expenses
|
| | | $ | 137,364 | | | | | $ | 138,837 | | |
General and administrative expenses – related party
|
| | | | 52,500 | | | | | | 52,500 | | |
Franchise tax expense
|
| | | | 49,863 | | | | | | 78,954 | | |
Loss from operations
|
| | | | (239,727) | | | | | | (270,291) | | |
Interest income from Trust Account
|
| | | | 43,410 | | | | | | 43,410 | | |
Net loss
|
| | | $ | (196,317) | | | | | $ | (226,881) | | |
Weighted average shares outstanding of Class A common stock
|
| | | | 14,375,000 | | | | | | 14,375,000 | | |
Basic and diluted net income per share
|
| | | $ | — | | | | | $ | — | | |
Weighted average shares outstanding of Class B common stock
|
| | | | 3,593,750 | | | | | | 3,593,750 | | |
Basic and diluted net loss per share
|
| | | $ | (0.05) | | | | | $ | (0.06) | | |
| | |
Common Stock
|
| |
Additional
Paid-In Capital |
| |
Accumulated
Deficit |
| |
Total
Stockholders’ Equity (Deficit) |
| ||||||||||||||||||||||||||||||
| | |
Class A
|
| |
Class B
|
| ||||||||||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
Balance – May 8, 2020 (inception)
|
| | | | — | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Issuance of Class B common stock to Sponsor
|
| | | | — | | | | | | — | | | | | | 3,593,750 | | | | | | 359 | | | | | | 24,641 | | | | | | — | | | | | | 25,000 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (30,564) | | | | | | (30,564) | | |
Balance – June 30, 2020
|
| | | | — | | | | | $ | — | | | | | | 3,593,750 | | | | | $ | 359 | | | | | $ | 24,641 | | | | | $ | (30,564) | | | | | $ | (5,564) | | |
Sale of units in initial public offering, gross
|
| | | | 14,375,000 | | | | | | 1,438 | | | | | | — | | | | | | — | | | | | | 143,748,562 | | | | | | — | | | | | | 143,750,000 | | |
Offering costs
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (7,480,781) | | | | | | — | | | | | | (7,480,781) | | |
Sale of private placement warrants to Sponsor in private placement
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 4,375,000 | | | | | | — | | | | | | 4,375,000 | | |
Common stock subject to possible redemption
|
| | | | (13,544,233) | | | | | | (1,355) | | | | | | — | | | | | | — | | | | | | (135,440,975) | | | | | | — | | | | | | (135,442,330) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (196,317) | | | | | | (196,317) | | |
Balance – September 30, 2020
|
| | | | 830,767 | | | | | $ | 83 | | | | | | 3,593,750 | | | | | $ | 359 | | | | | $ | 5,226,447 | | | | | $ | (226,881) | | | | | $ | 5,000,008 | | |
|
| Cash Flows from Operating Activities: | | | | | | | |
|
Net loss
|
| | | $ | (226,881) | | |
| Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | |
|
Interest earned on investments held in Trust Account
|
| | | | (43,410) | | |
| Changes in operating assets and liabilities: | | | | | | | |
|
Prepaid expenses
|
| | | | (15,140) | | |
|
Accounts payable
|
| | | | (235,292) | | |
|
Accrued expenses
|
| | | | 65,000 | | |
|
Franchise tax payable
|
| | | | 78,954 | | |
|
Net cash used in operating activities
|
| | | | (376,769) | | |
| Cash Flows from Investing Activities | | | | | | | |
|
Principal deposited in Trust Account
|
| | | | (143,750,000) | | |
|
Net cash used in investing activities
|
| | | | (143,750,000) | | |
| Cash Flows from Financing Activities: | | | | | | | |
|
Proceeds from issuance of Class B common stock to Sponsor
|
| | | | 25,000 | | |
|
Proceeds from note payable to related party
|
| | | | 200,000 | | |
|
Repayment of note payable to related party
|
| | | | (200,000) | | |
|
Proceeds received from initial public offering, gross
|
| | | | 143,750,000 | | |
|
Proceeds received from private placement
|
| | | | 4,375,000 | | |
|
Offering costs paid
|
| | | | (3,035,641) | | |
|
Net cash provided by financing activities
|
| | | | 145,114,359 | | |
|
Net increase in cash
|
| | | | 987,590 | | |
|
Cash – beginning of the period
|
| | |
|
—
|
| |
|
Cash – end of the period
|
| | | $ | 987,590 | | |
| Supplemental disclosure of noncash activities: | | | | | | | |
|
Offering costs included in accounts payable
|
| | | $ | 1,890 | | |
|
Prepaid expenses included in accounts payable
|
| | | $ | 236,389 | | |
|
Deferred underwriting commissions in connection with the initial public offering
|
| | | $ | 4,443,250 | | |
|
Initial classification of Class A common stock subject to possible redemption
|
| | | $ | 135,622,690 | | |
|
Change in value of Class A common stock subject to possible redemption
|
| | | $ | (180,360) | | |
Description
|
| |
Quoted Prices in
Active Markets (Level 1) |
| |
Significant Other
Observable Inputs (Level 2) |
| |
Significant Other
Unobservable Inputs (Level 3) |
| |||||||||
Investments held in Trust Account: | | | | | | | | | | | | | | | | | | | |
U.S. Treasury Securities
|
| | | $ | 143,793,410 | | | | | $ | — | | | | | $ | — | | |
| | | | $ | 143,793,410 | | | | | $ | — | | | | | $ | — | | |
| Assets: | | | | | | | |
|
Current assets: Cash
|
| | | $ | 25,000 | | |
|
Deferred offering costs associated with initial public offering
|
| | | | 19,900 | | |
|
Total assets
|
| | | $ | 44,900 | | |
| Liabilities and Stockholder’s Equity: | | | | | | | |
| Current liabilities: | | | | | | | |
|
Accrued expenses
|
| | | $ | 21,089 | | |
|
Total current liabilities
|
| | | | 21,089 | | |
| Commitments | | | | | | | |
| Stockholder’s Equity: | | | | | | | |
|
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding
|
| | | | — | | |
|
Class A common stock, $0.0001 par value; 100,000,000 shares authorized; none issued and outstanding
|
| | | | — | | |
|
Class B common stock, $0.0001 par value; 10,000,000 shares authorized; 3,593,750 shares issued
and outstanding(1)(2) |
| | | | 359 | | |
|
Additional paid-in capital
|
| | | | 24,641 | | |
|
Accumulated deficit
|
| | | | (1,189) | | |
|
Total stockholder’s equity
|
| | | | 23,811 | | |
|
Total Liabilities and Stockholder’s Equity
|
| | | $ | 44,900 | | |
|
General and administrative costs
|
| | | $ | 1,189 | | |
|
Net loss
|
| | | $ | (1,189) | | |
|
Weighted average shares outstanding, basic and diluted(1)(2)
|
| | | | 3,125,000 | | |
|
Basic and diluted net loss per share
|
| | | $ | (0.00) | | |
| | |
Common Stock
|
| |
Additional
Paid-In Capital |
| |
Accumulated
Deficit |
| |
Total
Stockholder’s Equity |
| ||||||||||||||||||||||||||||||
| | |
Class A
|
| |
Class B
|
| ||||||||||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
Balance – May 8, 2020 (inception)
|
| |
|
| | | $ | — | | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | |||
Issuance of Class B common stock to Sponsor(1)(2)
|
| | | | — | | | | | | — | | | | | | 3,593,750 | | | | | | 359 | | | | | | 24,641 | | | | | | — | | | | | | 25,000 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,189) | | | | | | (1,189) | | |
Balance – May 22, 2020
|
| | | | — | | | | | $ | — | | | | | | 3,593,750 | | | | | $ | 359 | | | | | $ | 24,641 | | | | | $ | (1,189) | | | | | $ | 23,811 | | |
| Cash Flows from Operating Activities: | | | | | | | |
|
Net loss
|
| | | $ | (1,189) | | |
| Changes in operating assets and liabilities: | | | | | | | |
|
Accrued expenses
|
| | | | 1,189 | | |
|
Net cash used in operating activities
|
| | | | — | | |
| Cash Flows from Financing Activities: | | | | | | | |
|
Proceeds from issuance of Class B common stock to Sponsor
|
| | | | 25,000 | | |
|
Net cash provided by financing activities
|
| | | | 25,000 | | |
|
Net increase in cash
|
| | | | 25,000 | | |
|
Cash – beginning of the period
|
| | |
|
—
|
| |
|
Cash – end of the period
|
| | | $ | 25,000 | | |
| Supplemental disclosure of noncash activities: | | | | | | | |
|
Deferred offering costs included in accrued expenses
|
| | | $ | 19,900 | | |
| | | | | | ||||||||
| | |
(unaudited)
|
| | | | | | | |||
ASSETS | | | | | | | | | | | | | |
CURRENT ASSETS | | | | | | | | | | | | | |
Cash and Cash Equivalents
|
| | | $ | 9,577,529 | | | | | $ | 4,437,704 | | |
Accounts Receivable
|
| | | | 5,770,591 | | | | | | 5,187,182 | | |
Inventory
|
| | | | 13,218 | | | | | | 10,619 | | |
Prepaid Expenses
|
| | | | 133,813 | | | | | | 188,493 | | |
Risk Settlements Due from Providers
|
| | | | — | | | | | | 128,419 | | |
Due from Related Parties
|
| | | | 230,097 | | | | | | 109,539 | | |
Total Current Assets
|
| | | | 15,725,248 | | | | | | 10,061,956 | | |
Property and Equipment, net
|
| | | | 4,716,569 | | | | | | 3,454,219 | | |
Goodwill
|
| | | | 7,110,178 | | | | | | 5,577,030 | | |
Intangible Assets, net
|
| | | | 6,068,329 | | | | | | 5,043,021 | | |
Other Assets
|
| | | | 182,943 | | | | | | 194,748 | | |
Total Assets
|
| | | $ | 33,803,267 | | | | | $ | 24,330,974 | | |
LIABILITIES AND MEMBERS’ EQUITY | | | | | | | | | | | | | |
CURRENT LIABILITIES | | | | | | | | | | | | | |
Current Maturities of Long-Term Debt, net
|
| | | $ | 807,112 | | | | | $ | 705,054 | | |
Accounts Payable
|
| | | | 1,251,515 | | | | | | 1,515,323 | | |
Due to Related Parties
|
| | | | — | | | | | | 20,457 | | |
Risk Settlements Due to Providers
|
| | | | 222,901 | | | | | | 443,653 | | |
Accrued Interest Payable
|
| | | | 108,700 | | | | | | 123,632 | | |
Accrued Expenses
|
| | | | 162,519 | | | | | | 529,082 | | |
Total Current Liabilities
|
| | | | 2,552,747 | | | | | | 3,337,201 | | |
Long-Term Debt, less current maturities, net
|
| | | | 20,494,077 | | | | | | 16,047,708 | | |
Total Liabilities
|
| | | | 23,046,824 | | | | | | 19,384,909 | | |
MEMBERS’ EQUITY | | | | | | | | | | | | | |
Units (no par value, 200 authorized, issued and outstanding as of September 30, 2020 and December 31, 2019)
|
| | | | 223,100 | | | | | | 223,100 | | |
Members’ Equity
|
| | | | 10,634,931 | | | | | | 4,937,161 | | |
Total Members’ Equity – Controlling Interest
|
| | | | 10,858,031 | | | | | | 5,160,261 | | |
Noncontrolling Interest
|
| | | | (101,588) | | | | | | (214,196) | | |
Total Members’ Equity
|
| | | | 10,756,443 | | | | | | 4,946,065 | | |
Total Liabilities and Members’ Equity
|
| | | $ | 33,803,267 | | | | | $ | 24,330,974 | | |
| | | | | | ||||||||
| | |
(unaudited)
|
| |
(unaudited)
|
| ||||||
Revenue | | | | | | | | | | | | | |
Capitated Revenue
|
| | | $ | 87,602,552 | | | | | $ | 64,831,552 | | |
Other Revenue
|
| | | | 251,012 | | | | | | 345,402 | | |
Total Revenue
|
| | | | 87,853,564 | | | | | | 65,176,954 | | |
Expenses | | | | | | | | | | | | | |
Medical Expenses
|
| | | | 49,840,748 | | | | | | 35,817,755 | | |
Administrative Expenses
|
| | | | 31,659,005 | | | | | | 23,596,309 | | |
Total Expenses
|
| | | | 81,499,753 | | | | | | 59,414,064 | | |
Net Income
|
| | | | 6,353,811 | | | | | | 5,762,890 | | |
Net Income (Loss) Attributable to Noncontrolling Interests
|
| | | | 26,302 | | | | | | (31,849) | | |
Net Income Attributable to Controlling Interests
|
| | | $ | 6,327,509 | | | | | $ | 5,794,739 | | |
Net Income Attributable to Controlling Interests
|
| | | $ | 6,327,509 | | | | | $ | 5,794,739 | | |
Weighted-Average Units Outstanding
|
| | | | 200 | | | | | | 200 | | |
Net Income per Unit – Basic and Diluted
|
| | | $ | 31,638 | | | | | $ | 28,974 | | |
| | |
Units
|
| |
Members’
Contribution |
| |
Members’
Equity |
| |
Total
Members’ Equity- Controlling Interest |
| |
Noncontrolling
Interest |
| |
Total
Members’ Equity |
| ||||||||||||||||||
BALANCE – JANUARY 1, 2019
|
| | | | 200 | | | | | $ | 223,100 | | | | | $ | 3,806,069 | | | | | $ | 4,029,169 | | | | | $ | (151,348) | | | | | $ | 3,877,821 | | |
Purchase of noncontrolling interest
|
| | | | | | | | | | — | | | | | | (473,219) | | | | | | (473,219) | | | | | | — | | | | | | (473,219) | | |
Change in noncontrolling interest
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
due to change in ownership
|
| | | | | | | | | | | | | | | | (110,346) | | | | | | (110,346) | | | | | | 110,346 | | | | | | — | | |
Net income (loss)
|
| | | | | | | | | | | | | | | | 5,794,739 | | | | | | 5,794,739 | | | | | | (31,849) | | | | | | 5,762,890 | | |
Distributions
|
| | | | | | | | | | | | | | | | (1,804,160) | | | | | | (1,804,160) | | | | | | | | | | | | (1,804,160) | | |
BALANCE – SEPTEMBER 30, 2019
|
| | | | 200 | | | | | $ | 223,100 | | | | | $ | 7,213,083 | | | | | $ | 7,436,183 | | | | | $ | (72,851) | | | | | $ | 7,363,332 | | |
BALANCE – JANUARY 1, 2020
|
| | | | 200 | | | | | $ | 223,100 | | | | | $ | 4,937,161 | | | | | $ | 5,160,261 | | | | | $ | (214,196) | | | | | $ | 4,946,065 | | |
Purchase of noncontrolling interest
|
| | | | | | | | | | | | | | | | (399,433) | | | | | | (399,433) | | | | | | | | | | | | (399,433) | | |
Change in noncontrolling interest due to change in ownership
|
| | | | | | | | | | | | | | | | (86,306) | | | | | | (86,306) | | | | | | 86,306 | | | | | | — | | |
Net Income (loss)
|
| | | | | | | | | | | | | | | | 6,327,509 | | | | | | 6,327,509 | | | | | | 26,302 | | | | | | 6,353,811 | | |
Distributions
|
| | | | | | | | | | | | | | | | (144,000) | | | | | | (144,000) | | | | | | | | | | | | (144,000) | | |
BALANCE – SEPTEMBER 30, 2020
|
| | | | 200 | | | | | $ | 223,100 | | | | | $ | 10,634,931 | | | | | $ | 10,858,031 | | | | | $ | (101,588) | | | | | $ | 10,756,443 | | |
|
| | |
Nine months ended
September 30, 2020 |
| |
Nine months ended
September 30, 2019 |
| ||||||
| | |
(unaudited)
|
| |
(unaudited)
|
| ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | | | | | | | | | | | | | |
Net Income
|
| | | $ | 6,353,811 | | | | | $ | 5,762,890 | | |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
|
| | | | | | | | | | | | |
Depreciation Expense
|
| | | | 626,439 | | | | | | 473,218 | | |
Amortization Expense
|
| | | | 447,716 | | | | | | 102,821 | | |
Amortization of Deferred Financing Costs
|
| | | | 51,855 | | | | | | — | | |
(Increase) Decrease in Assets: | | | | | | | | | | | | | |
Accounts Receivable
|
| | | | (583,409) | | | | | | (833,960) | | |
Inventory
|
| | | | (2,599) | | | | | | (1,206) | | |
Prepaid Expenses
|
| | | | 54,680 | | | | | | 92,454 | | |
Risk Settlements Due from Providers
|
| | | | 128,419 | | | | | | 59,441 | | |
Due from Related Parties
|
| | | | (120,558) | | | | | | 69,526 | | |
Other Assets
|
| | | | 11,805 | | | | | | (475,173) | | |
Increase (Decrease) in Liabilities: | | | | | | | | | | | | | |
Accounts Payable
|
| | | | (347,141) | | | | | | 395,927 | | |
Due to Related Parties
|
| | | | (20,457) | | | | | | — | | |
Risk Settlements Due to Providers
|
| | | | (220,752) | | | | | | (169,090) | | |
Accrued Expenses
|
| | | | (381,494) | | | | | | (122,897) | | |
Net Cash Provided by Operating Activities
|
| | | | 5,998,315 | | | | | | 5,353,951 | | |
CASH FLOWS FROM INVESTING ACTIVITIES | | | | | | | | | | | | | |
Purchase of Property and Equipment
|
| | | | (1,788,789) | | | | | | (33,012) | | |
Acquisition of Business
|
| | | | (2,656,172) | | | | | | (9,265,904) | | |
Asset Purchase Agreement Holdback Payment
|
| | | | (333,333) | | | | | | — | | |
Purchase of Non Controlling Interest
|
| | | | (316,100) | | | | | | (473,219) | | |
Net Cash Used in Investing Activities
|
| | | | (5,094,394) | | | | | | (9,772,135) | | |
CASH FLOWS FROM FINANCING ACTIVITIES | | | | | | | | | | | | | |
Borrowings under Term Loan
|
| | | | — | | | | | | 11,957,330 | | |
Borrowings on Line of Credit
|
| | | | — | | | | | | 2,700,000 | | |
Borrowings under Revolving Loan Commitment
|
| | | | 2,467,013 | | | | | | — | | |
Loan from Paycheck Protection Program
|
| | | | 2,164,145 | | | | | | — | | |
Payments on Long Term Debt
|
| | | | (251,254) | | | | | | (642,027) | | |
Payments on Line of Credit
|
| | | | — | | | | | | (1,350,000) | | |
Debt Issuance Costs
|
| | | | — | | | | | | (125,000) | | |
Member Distributions
|
| | | | (144,000) | | | | | | (1,804,160) | | |
Net Cash Provided by Financing Activities
|
| | | | 4,235,904 | | | | | | 10,736,143 | | |
NET INCREASE IN CASH AND CASH EQUIVALENTS
|
| | | | 5,139,825 | | | | | | 6,317,959 | | |
Cash and Cash Equivalents – Beginning of Period
|
| | | | 4,437,704 | | | | | | 281,992 | | |
CASH AND CASH EQUIVALENTS – END OF PERIOD
|
| | | $ | 9,577,529 | | | | | $ | 6,599,951 | | |
|
| | |
Nine Months Ended
September 30, 2020 |
| |
Nine Months Ended
September 30, 2019 |
| ||||||
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES
|
| | | | | | | | | | | | |
Cash Paid for Interest
|
| | | $ | 1,058,689 | | | | | $ | 280,203 | | |
Purchase of Property and Equipment through Long-Term Debt
|
| | | $ | — | | | | | $ | 402,601 | | |
Debt Issuance Costs Paid through Long-Term Debt
|
| | | $ | — | | | | | $ | 566,395 | | |
Payment on Line of Credit through New Debt Proceeds
|
| | | $ | — | | | | | $ | 2,000,000 | | |
Extinguishment of Long-Term Debt through New Debt Proceeds
|
| | | $ | — | | | | | $ | 1,476,335 | | |
Acquisition of Business Financed through Long-Term Debt
|
| | | $ | 450,000 | | | | | $ | 1,000,000 | | |
Purchase of Non-controlling Interest Financed through Accounts Payable
|
| | | $ | 83,333 | | | | | $ | — | | |
| | | | | | ||||||||
HealthSun
|
| | | | 92% | | | | | | 100% | | |
Simply Healthcare
|
| | | | 6% | | | | | | — | | |
Preferred Care
|
| | | | 1% | | | | | | — | | |
Humana
|
| | | | 1% | | | | | | — | | |
| | | | | 100% | | | | | | 100% | | |
| | |
Hiahleah
|
| |
Coral Way
|
| |
Tamarac
|
| |
Little Havana
|
| |
Total
Company |
| |||||||||||||||
Balances as of January 1, 2019
|
| | | $ | 186,150 | | | | | $ | 322,998 | | | | | $ | — | | | | | $ | — | | | | | $ | 509,148 | | |
Goodwill Acquired
|
| | | | — | | | | | | — | | | | | | 5,067,882 | | | | | | — | | | | | | 5,067,882 | | |
Impairment Losses
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Balances as of December 31, 2019
|
| | | | 186,150 | | | | | | 322,998 | | | | | | 5,067,882 | | | | | | — | | | | | | 5,577,030 | | |
Goodwill Acquired
|
| | | | — | | | | | | — | | | | | | — | | | | | | 1,533,148 | | | | | | 1,533,148 | | |
Impairment Losses
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Balances as of September 30, 2020
|
| | | $ | 186,150 | | | | | $ | 322,998 | | | | | $ | 5,067,882 | | | | | $ | 1,533,148 | | | | | $ | 7,110,178 | | |
Year ending December 31,
|
| | | | | | |
2020 (remaining 3 months)
|
| | | $ | 179,741 | | |
2021
|
| | | | 718,962 | | |
2022
|
| | | | 718,962 | | |
2023
|
| | | | 710,158 | | |
2024
|
| | | | 656,235 | | |
Thereafter
|
| | | | 3,084,271 | | |
| | | | $ | 6,068,329 | | |
|
| | |
Risk
Contracts |
| |
Non-competition
Agreements |
| |
Total
Intangible Assets |
| |||||||||
Balances as of January 1, 2019
|
| | | $ | 395,287 | | | | | $ | 61,078 | | | | | $ | 456,365 | | |
Intangible Assets Acquired
|
| | | | 4,180,000 | | | | | | 650,000 | | | | | | 4,830,000 | | |
Less Amortization Expense
|
| | | | (180,617) | | | | | | (62,727) | | | | | | (243,344) | | |
Balances as of December 31, 2019
|
| | | $ | 4,394,670 | | | | | $ | 648,351 | | | | | $ | 5,043,021 | | |
Intangible Assets Acquired
|
| | | | 1,262,592 | | | | | | 210,432 | | | | | | 1,473,024 | | |
Less Amortization Expense
|
| | | | (332,719) | | | | | | (114,997) | | | | | | (447,716) | | |
Balances as of September 30, 2020
|
| | | $ | 5,324,543 | | | | | $ | 743,786 | | | | | $ | 6,068,329 | | |
| | |
2020
|
| |
2019
|
| ||||||
Current Assets
|
| | | $ | — | | | | | $ | 700,909 | | |
Property and Equipment
|
| | | | 100,000 | | | | | | 401,208 | | |
Security Deposit
|
| | | | — | | | | | | 23,106 | | |
Identifiable Intangible Assets: | | | | | | | | | | | | | |
Non-compete agreements
|
| | | | 210,432 | | | | | | 650,000 | | |
Risk Contracts
|
| | | | 1,262,592 | | | | | | 4,180,000 | | |
Net Assets Acquired
|
| | | | 1,573,024 | | | | | | 5,955,223 | | |
Excess of Consideration over Net Assets Acquired
|
| | | | 1,533,148 | | | | | | 5,067,882 | | |
Total Consideration
|
| | | $ | 3,106,172 | | | | | $ | 11,023,105 | | |
| | | | | | ||||||||
Leasehold Improvements
|
| | | $ | 1,705,280 | | | | | $ | 971,558 | | |
Vehicles
|
| | | | 2,823,473 | | | | | | 2,823,473 | | |
Furniture and Equipment
|
| | | | 1,802,898 | | | | | | 1,330,185 | | |
Construction in Progress
|
| | | | 1,249,148 | | | | | | 566,794 | | |
Total
|
| | | | 7,580,799 | | | | | | 5,692,010 | | |
Less: Accumulated Depreciation
|
| | | | (2,864,230) | | | | | | (2,237,791) | | |
Total Property and Equipment, Net
|
| | | $ | 4,716,569 | | | | | $ | 3,454,219 | | |
Description
|
| | | | | ||||||||
Various vehicle notes payable with Mercedes-Benz Financial Services with monthly principal and interest payments ranging from $607 to $996 and maturing August 2024 through November 2025. Interest rates ranging from 3.99% to 5.75%. Secured by the related vehicles.
|
| | | $ | 267,588 | | | | | $ | 310,479 | | |
Medical equipment note payable with Wells Fargo Equipment Finance with monthly principal and interest payments of $2,961 at an interest rate of 5.71%, maturing in March 2021. Secured by the related equipment.
|
| | | | 17,729 | | | | | | 43,021 | | |
Medical equipment note payable with Wells Fargo Equipment Finance with monthly principal and interest payments of $1,082 at an interest rate of 5.82%, matured in May 2020. Secured by the related equipment.
|
| | | | — | | | | | | 5,661 | | |
Medical equipment note payable with Conestoga Equipment Finance Corp. with monthly principal and interest payments of $818 at an interest rate of 7.88%, maturing in February 2021. Secured by the related equipment.
|
| | | | 4,422 | | | | | | 11,316 | | |
Medical equipment note payable with Conestoga Equipment Finance Corp. with monthly principal and interest payments of $844 at an interest rate of 7.74%, matured in July 2020. Secured by the related equipment.
|
| | | | — | | | | | | 4,541 | | |
Asset purchase agreement holdback payable in equal principal
installments over three years from closing, zero interest, final payment August 2022. Unsecured. |
| | | | 666,667 | | | | | | 1,000,000 | | |
Term loan payable due to White Oak Healthcare Finance with variable
interest and principal amortization, maturing with a balloon payment in August 2024. |
| | | | 15,834,026 | | | | | | 16,000,000 | | |
Interest includes a base rate of the greater of 2.25% or LIBOR plus an applicable margin between 5% and 6% depending on consolidated leverage ratio.
|
| | | ||||||||||
Revolving loan facility due to White Oak Healthcare Finance with the same interest and payment terms as the Term Loan
|
| | | | 2,467,013 | | | | | | — | | |
Acquisition agreement holdback payable as a balloon payment in July 2023. Interest payable quarterly at 5% per annum. Unsecured.
|
| | | | 450,000 | | | | | | | | |
Loan from Paycheck Protection Program. Due date April 2022. Interest payable at 0.98% per annum. Unsecured.
|
| | | | 2,164,145 | | | | | | | | |
Less: Unamortized Debt Issuance Costs
|
| | | | (570,401) | | | | | | (622,256) | | |
Total Long-Term Debt
|
| | | | 21,301,189 | | | | | | 16,752,762 | | |
Less: Current Maturities
|
| | | | (807,112) | | | | | | (705,054) | | |
Long-Term Debt, Less Current Maturities
|
| | | $ | 20,494,077 | | | | | $ | 16,047,708 | | |
Year Ending September 30,
|
| |
Amount
|
| |||
2021
|
| | | $ | 807,112 | | |
2022
|
| | | | 2,870,627 | | |
2023
|
| | | | 815,746 | | |
2024
|
| | | | 16,787,566 | | |
2025
|
| | | | 20,138 | | |
Thereafter
|
| | | | — | | |
Total
|
| | | $ | 21,301,189 | | |
| | | | | | ||||||||
Total Assets
|
| | | $ | 93,838 | | | | | $ | — | | |
Total Liabilities
|
| | | $ | 237,555 | | | | | $ | 53,278 | | |
| | |
Amount
|
| |||
2020
|
| | | $ | 2,273,482 | | |
2021
|
| | | | 2,738,171 | | |
2022
|
| | | | 2,295,314 | | |
2023
|
| | | | 2,242,433 | | |
2024
|
| | | | 2,133,746 | | |
Thereafter
|
| | | | 14,270,074 | | |
Total
|
| | | $ | 25,953,220 | | |
|
Legal Entity
|
| |
Optional Renewal Term
|
|
|
CareMax Medical Group Tamarac
|
| |
One ten year period
|
|
|
Managed Health Care Partners
|
| |
Two five year periods
|
|
|
CareMax Medical Group North Miami
|
| |
Two five year periods
|
|
|
CareMax Medical Group Hialeah
|
| |
One five year period
|
|
|
CareMax Medical Group Miami
|
| |
One five year period
|
|
| | |
2019
|
| |
2018
|
| ||||||
ASSETS | | | | | | | | | | | | | |
CURRENT ASSETS | | | | | | | | | | | | | |
Cash and Cash Equivalents
|
| | | $ | 4,437,704 | | | | | $ | 281,992 | | |
Accounts Receivable
|
| | | | 5,187,182 | | | | | | 4,023,130 | | |
Inventory
|
| | | | 10,619 | | | | | | 10,433 | | |
Prepaid Expenses
|
| | | | 188,493 | | | | | | 184,502 | | |
Risk Settlements Due from Providers
|
| | | | 128,419 | | | | | | 59,441 | | |
Due from Related Parties
|
| | | | 109,539 | | | | | | 69,526 | | |
Total Current Assets
|
| | | | 10,061,956 | | | | | | 4,629,024 | | |
Property and Equipment, net
|
| | | | 3,454,219 | | | | | | 2,665,900 | | |
Goodwill
|
| | | | 5,577,030 | | | | | | 509,148 | | |
Intangible Assets, net
|
| | | | 5,043,021 | | | | | | 456,365 | | |
Other Assets
|
| | | | 194,748 | | | | | | 138,281 | | |
Total Assets
|
| | | $ | 24,330,974 | | | | | $ | 8,398,718 | | |
LIABILITIES AND MEMBERS’ EQUITY | | | | | | | | | | | | | |
CURRENT LIABILITIES | | | | | | | | | | | | | |
Current Maturities of Long-Term Debt, net
|
| | | $ | 705,054 | | | | | $ | 485,890 | | |
Line of Credit
|
| | | | — | | | | | | 650,000 | | |
Accounts Payable
|
| | | | 1,515,323 | | | | | | 1,305,566 | | |
Due to Related Parties
|
| | | | 20,457 | | | | | | — | | |
Risk Settlements Due to Providers
|
| | | | 443,653 | | | | | | 214,380 | | |
Accrued Interest Payable
|
| | | | 123,632 | | | | | | — | | |
Accrued Expenses
|
| | | | 529,082 | | | | | | 391,122 | | |
Total Current Liabilities
|
| | | | 3,337,201 | | | | | | 3,046,958 | | |
Long-Term Debt, less current maturities, net
|
| | | | 16,047,708 | | | | | | 1,473,939 | | |
Total Liabilities
|
| | | | 19,384,909 | | | | | | 4,520,897 | | |
MEMBERS’ EQUITY | | | | | | | | | | | | | |
Units (no par value, 200 authorized, issued and outstanding at December 31, 2019 and 2018)
|
| | | | 223,100 | | | | | | 223,100 | | |
Members’ Equity
|
| | | | 4,937,161 | | | | | | 3,806,069 | | |
Total Members’ Equity – controlling interest
|
| | | | 5,160,261 | | | | | | 4,029,169 | | |
Noncontrolling Interest
|
| | | | (214,196) | | | | | | (151,348) | | |
Total Members’ Equity
|
| | | | 4,946,065 | | | | | | 3,877,821 | | |
Total Liabilities and Members’ Equity
|
| | | $ | 24,330,974 | | | | | $ | 8,398,718 | | |
| | |
2019
|
| |
2018
|
| ||||||
Revenue | | | | | | | | | | | | | |
Capitated Revenue
|
| | | $ | 90,109,682 | | | | | $ | 71,873,280 | | |
Other Revenue
|
| | | | 491,859 | | | | | | 508,184 | | |
Total Revenue
|
| | | | 90,601,541 | | | | | | 72,381,464 | | |
Expenses | | | | | | | | | | | | | |
Medical Expenses
|
| | | | 51,622,064 | | | | | | 44,158,597 | | |
Administrative Expenses
|
| | | | 33,134,014 | | | | | | 24,737,228 | | |
Total Expenses
|
| | | | 84,756,078 | | | | | | 68,895,825 | | |
Net Income
|
| | | | 5,845,463 | | | | | | 3,485,639 | | |
Net Income (Loss) Attributable to Noncontrolling Interests
|
| | | | (173,194) | | | | | | 16,471 | | |
Net Income Attributable to Controlling Interests
|
| | | $ | 6,018,657 | | | | | $ | 3,469,168 | | |
Net Income Attributable to Controlling Interests
|
| | | $ | 6,018,657 | | | | | $ | 3,469,168 | | |
Weighted-average Units Outstanding
|
| | | | 200 | | | | | | 200 | | |
Net Income per Unit- Basic and Diluted
|
| | | $ | 30,093 | | | | | $ | 17,346 | | |
| | |
Units
|
| |
Members’
Contribution |
| |
Members’
Equity |
| |
Total
Members’ Equity Controlling Interest |
| |
Noncontrolling
Deficit |
| |
Total
Members’ Equity |
| ||||||||||||||||||
BALANCE – JANUARY 1, 2018
|
| | | | 200 | | | | | $ | 223,100 | | | | | $ | 336,901 | | | | | $ | 560,001 | | | | | $ | (167,819) | | | | | $ | 392,182 | | |
Net Income
|
| | | | | | | | | | — | | | | | | 3,469,168 | | | | | | 3,469,168 | | | | | | 16,471 | | | | | | 3,485,639 | | |
BALANCE – DECEMBER 31, 2018
|
| | | | 200 | | | | | | 223,100 | | | | | | 3,806,069 | | | | | | 4,029,169 | | | | | | (151,348) | | | | | | 3,877,821 | | |
Net Income (Loss)
|
| | | | | | | | | | — | | | | | | 6,018,657 | | | | | | 6,018,657 | | | | | | (173,194) | | | | | | 5,845,463 | | |
Purchase of Noncontrolling Interest Ownership
|
| | | | | | | | | | | | | | | | (473,219) | | | | | | (473,219) | | | | | | — | | | | | | (473,219) | | |
Change in Noncontrolling Interest Due to Ownership Change
|
| | | | | | | | | | — | | | | | | (110,346) | | | | | | (110,346) | | | | | | 110,346 | | | | | | — | | |
Distributions
|
| | | | | | | | | | — | | | | | | (4,304,000) | | | | | | (4,304,000) | | | | | | — | | | | | | (4,304,000) | | |
BALANCE – DECEMBER 31, 2019
|
| | | | 200 | | | | | $ | 223,100 | | | | | $ | 4,937,161 | | | | | $ | 5,160,261 | | | | | $ | (214,196) | | | | | $ | 4,946,065 | | |
|
| | |
2019
|
| |
2018
|
| ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | | | | | | | | | | | | | |
Net Income
|
| | | $ | 5,845,463 | | | | | $ | 3,485,639 | | |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
|
| | | | | | | | | | | | |
Depreciation Expense
|
| | | | 732,552 | | | | | | 570,036 | | |
Amortization Expense
|
| | | | 312,484 | | | | | | 32,816 | | |
Loss on Disposal of Fixed Asset
|
| | | | 13,268 | | | | | | — | | |
(Increase) Decrease in Assets: | | | | | | | | | | | | | |
Accounts Receivable
|
| | | | (463,143) | | | | | | (4,023,130) | | |
Inventory
|
| | | | (186) | | | | | | (1,594) | | |
Prepaid Expenses
|
| | | | (3,991) | | | | | | (63,356) | | |
Risk Settlements Due from Providers
|
| | | | (68,978) | | | | | | (36,895) | | |
Due from Related Parties
|
| | | | (40,013) | | | | | | 71,721 | | |
Other Assets
|
| | | | (33,361) | | | | | | 1,455 | | |
Increase (Decrease) in Liabilities: | | | | | | | | | | | | | |
Accounts Payable
|
| | | | 209,757 | | | | | | 1,167,437 | | |
Due to Related Parties
|
| | | | 20,457 | | | | | | — | | |
Risk Settlements Due to Providers
|
| | | | 229,273 | | | | | | 214,380 | | |
Due to Health Plans
|
| | | | — | | | | | | (934,796) | | |
Accrued Expenses
|
| | | | 261,592 | | | | | | 101,040 | | |
Net Cash Provided by Operating Activities
|
| | | | 7,015,174 | | | | | | 584,753 | | |
CASH FLOWS FROM INVESTING ACTIVITIES | | | | | | | | | | | | | |
Purchase of Property and Equipment
|
| | | | (730,330) | | | | | | (384,642) | | |
Acquisition of Businesses
|
| | | | (10,023,106) | | | | | | (550,000) | | |
Purchase of Noncontrolling Interest Ownership
|
| | | | (473,219) | | | | | | — | | |
Net Cash Used in Investing Activities
|
| | | | (11,226,655) | | | | | | (934,642) | | |
CASH FLOWS FROM FINANCING ACTIVITIES | | | | | | | | | | | | | |
Proceeds from Line of Credit
|
| | | | 2,700,000 | | | | | | 1,950,000 | | |
Principal Payments on Line of Credit
|
| | | | (1,350,000) | | | | | | (1,300,000) | | |
Proceeds from Issuance of Long-Term Debt
|
| | | | 11,957,330 | | | | | | — | | |
Principal Payments on Long-Term Debt
|
| | | | (511,137) | | | | | | (307,781) | | |
Debt Issuance Costs
|
| | | | (125,000) | | | | | | | | |
Member Distributions
|
| | | | (4,304,000) | | | | | | — | | |
Net Cash Provided by Financing Activities
|
| | | | 8,367,193 | | | | | | 342,219 | | |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
| | | | 4,155,712 | | | | | | (7,670) | | |
Cash and Cash Equivalents – Beginning of Year
|
| | | | 281,992 | | | | | | 289,662 | | |
CASH AND CASH EQUIVALENTS – END OF YEAR
|
| | | $ | 4,437,704 | | | | | $ | 281,992 | | |
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES
|
| | | | | | | | | | | | |
Cash Paid for Interest
|
| | | $ | 527,627 | | | | | $ | 96,070 | | |
Purchase of Property and Equipment through Long-Term Debt
|
| | | $ | 402,601 | | | | | $ | 603,917 | | |
Debt Issuance Costs Paid through Long-Term Debt
|
| | | $ | 566,395 | | | | | $ | — | | |
Payment on Line of Credit through New Debt Proceeds
|
| | | $ | 2,000,000 | | | | | $ | — | | |
Extinguishment of Long-Term Debt through New Debt Proceeds
|
| | | $ | 1,476,335 | | | | | $ | — | | |
Acquisition of Business Financed through Long-Term Debt
|
| | | $ | 1,000,000 | | | | | $ | 200,000 | | |
| | |
Year ended
December 31, 2019 |
| |
Year ended
December 31, 2018 |
| ||||||
HealthSun
|
| | | | 99% | | | | | | 100% | | |
Simply Healthcare
|
| | | | 1% | | | | | | 0% | | |
| | | | | 100% | | | | | | 100% | | |
| | |
Hiahleah
|
| |
Coral Way
|
| |
Tamarac
|
| |
Total
Company |
| ||||||||||||
Balances as of January 1, 2018
|
| | | $ | 186,150 | | | | | $ | — | | | | | $ | — | | | | | | 186,150 | | |
Aggregate Goodwill Acquired
|
| | | | — | | | | | | 322,998 | | | | | | — | | | | | | 322,998 | | |
Impairment Losses
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Balances as of December 31, 2018
|
| | | | 186,150 | | | | | | 322,998 | | | | | | — | | | | | | 509,148 | | |
Goodwill Acquired
|
| | | | — | | | | | | — | | | | | | 5,067,882 | | | | | | 5,067,882 | | |
Impairment Losses
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Balances as of December 31, 2019
|
| | | $ | 186,150 | | | | | $ | 322,998 | | | | | $ | 5,067,882 | | | | | $ | 5,577,030 | | |
Year ending December 31,
|
| |
Amount
|
| |||
2020
|
| | | $ | 562,095 | | |
2021
|
| | | | 562,095 | | |
2022
|
| | | | 562,095 | | |
2023
|
| | | | 553,290 | | |
2024
|
| | | | 499,368 | | |
Thereafter
|
| | | | 2,304,078 | | |
Total
|
| | | $ | 5,043,021 | | |
| | |
Risk Contracts
|
| |
Non-competition
Agreements |
| |
Total
Intangible Assets |
| |||||||||
Balances as of January 1, 2018
|
| | | $ | 153,300 | | | | | $ | 25,550 | | | | | $ | 178,850 | | |
Intangible Assets Acquired
|
| | | | 265,999 | | | | | | 44,332 | | | | | | 310,331 | | |
Less Accumulated Amortization
|
| | | | (24,012) | | | | | | (8,804) | | | | | | (32,816) | | |
Balances as of December 31, 2018
|
| | | | 395,287 | | | | | | 61,078 | | | | | | 456,365 | | |
Intangible Assets Acquired
|
| | | | 4,180,000 | | | | | | 650,000 | | | | | | 4,830,000 | | |
Less Accumulated Amortization
|
| | | | (180,617) | | | | | | (62,727) | | | | | | (243,344) | | |
Balances as of December 31, 2019
|
| | | $ | 4,394,670 | | | | | $ | 648,351 | | | | | $ | 5,043,021 | | |
|
Leasehold Improvements
|
| |
15 to 39 Years
|
|
|
Furniture and Equipment
|
| |
5 to 7 Years
|
|
| Vehicles | | |
5 Years
|
|
| Software | | |
3 Years
|
|
| | |
2019
|
| |
2018
|
| ||||||
Current Assets
|
| | | $ | 700,909 | | | | | $ | — | | |
Property and Equipment
|
| | | | 401,208 | | | | | | 116,670 | | |
Security Deposit
|
| | | | 23,106 | | | | | | — | | |
Identifiable Intangible Assets: | | | | | | | | | | | | | |
Non-compete agreements
|
| | | | 650,000 | | | | | | 44,333 | | |
Risk Contracts
|
| | | | 4,180,000 | | | | | | 265,999 | | |
Net Assets Acquired
|
| | | | 5,955,223 | | | | | | 427,002 | | |
Excess of Consideration over Net Assets Acquired
|
| | | | 5,067,882 | | | | | | 322,998 | | |
Total Consideration
|
| | | $ | 11,023,105 | | | | | $ | 750,000 | | |
| | | | | | ||||||||
Leasehold Improvements
|
| | | $ | 971,558 | | | | | $ | 964,444 | | |
Vehicles
|
| | | | 2,823,473 | | | | | | 2,301,550 | | |
Furniture and Equipment
|
| | | | 1,330,185 | | | | | | 920,493 | | |
Construction in Progress
|
| | | | 566,794 | | | | | | 17,370 | | |
Total
|
| | | | 5,692,010 | | | | | | 4,203,857 | | |
Less: Accumulated Depreciation
|
| | | | (2,237,791) | | | | | | (1,537,957) | | |
Total Property and Equipment, Net
|
| | | $ | 3,454,219 | | | | | $ | 2,665,900 | | |
|
| | |
2019
|
| |
2018
|
| ||||||
Various vehicle notes payable with Mercedes-Benz Financial Services with monthly principal and interest payments ranging from $607 to $996 and maturing August 2024 through November 2025. Interest rates ranging from 3.99% to 5.75%. Secured by the related vehicles.
|
| | | $ | 310,479 | | | | | $ | 1,625,130 | | |
Vehicle note payable with Toyota Finance with monthly principal and interest payments of $561 at an interest rate of 3.59%, maturing in November 2020. Secured by the related vehicle. Paid off early during 2019.
|
| | | | — | | | | | | 9,995 | | |
Medical equipment note payable with Wells Fargo Equipment Finance with monthly principal and interest payments of $2,961 at an interest rate of 5.71%, maturing in March 2021. Secured by the related equipment.
|
| | | | 43,021 | | | | | | 75,105 | | |
Medical equipment note payable with Wells Fargo Equipment Finance with monthly principal and interest payments of $1,082 at an interest rate of 5.82%, maturing in March 2021. Secured by the related equipment.
|
| | | | 5,661 | | | | | | 17,942 | | |
Medical equipment note payable with Conestoga Equipment Finance Corp. with monthly principal and interest payments of $818 at an interest rate of 7.88%, maturing in February 2021. Secured by the related equipment
|
| | | | 11,316 | | | | | | 18,668 | | |
Medical equipment note payable with Conestoga Equipment Finance Corp. with monthly principal and interest payments of $844 at an interest rate of 7.74%, maturing in July 2020. Secured by the related equipment.
|
| | | | 4,541 | | | | | | 12,989 | | |
Two unsecured zero interest notes payable due to Belingroup, Inc. of $100,000 each, maturing in February 2019 and August 2019, respectively.
|
| | | | — | | | | | | 200,000 | | |
Asset purchase agreement holdback payable in equal principal installments
over three years from closing, zero interest, final payment August 2022. (See Note 5) |
| | | | 1,000,000 | | | | | | — | | |
Term loan payable due to White Oak Healthcare Finance with variable interest
and principal amortization, maturing with a balloon payment in August 2024. Interest includes a base rate of the greater of 2.25% or LIBOR plus an applicable margin between 5% and 6% depending on consolidated leverage ratio. (see below) |
| | | | 16,000,000 | | | | | | — | | |
Less: Unamortized Debt Issuance Costs
|
| | | | (622,256) | | | | | | — | | |
Total Long-Term Debt
|
| | | | 16,752,762 | | | | | | 1,959,829 | | |
Less: Current Maturities
|
| | | | (705,054) | | | | | | (485,890) | | |
Long-Term Debt, Less Current Maturities
|
| | | $ | 16,047,708 | | | | | $ | 1,473,939 | | |
Year ending December 31,
|
| |
Amount
|
| |||
2020
|
| | | $ | 705,054 | | |
2021
|
| | | | 792,720 | | |
2022
|
| | | | 775,237 | | |
2023
|
| | | | 435,180 | | |
2024
|
| | | | 14,660,335 | | |
Thereafter
|
| | | | 6,492 | | |
Total
|
| | | $ | 17,375,018 | | |
| | |
2019
|
| |
2018
|
| ||||||
Net Loss
|
| | | $ | (20,630) | | | | | $ | (13,847) | | |
Total Assets
|
| | | $ | — | | | | | $ | 2,996 | | |
Total Liabilities
|
| | | $ | 53,278 | | | | | $ | 35,645 | | |
Year ending December 31
|
| |
Amount
|
| |||
2020
|
| | | $ | 2,118,077 | | |
2021
|
| | | | 2,262,714 | | |
2022
|
| | | | 1,855,549 | | |
Year ending December 31
|
| |
Amount
|
| |||
2023
|
| | | | 1,789,475 | | |
2024
|
| | | | 1,667,199 | | |
Thereafter
|
| | | | 6,348,344 | | |
Total
|
| | | $ | 16,041,358 | | |
|
|
Legal Entity
|
| |
Optional Renewal Term
|
|
|
CareMax Medical Group Tamarac
|
| |
One ten year period
|
|
|
Managed Health Care Partners
|
| |
Two five year periods
|
|
|
CareMax Medical Group North Miami
|
| |
Two five year periods
|
|
|
CareMax Medical Group Hialeah
|
| |
One five year period
|
|
|
CareMax Medical Group Miami
|
| |
One five year period
|
|
Year ending December 31
|
| |
Amount
|
| |||
2020
|
| | | $ | 38,535 | | |
2021
|
| | | | 10,901 | | |
Total
|
| | | $ | 49,436 | | |
| | | | |
Tamarac acquisition
adjustments |
| |
CareMax
Pro Forma |
| ||||||||||
REVENUE | | | | | | | | | | | | | | | | | | | |
Capitated Revenue
|
| | | $ | 90,109,682 | | | | | $ | 7,866,743 | | | | | $ | 97,976,425 | | |
Other Revenue
|
| | | | 491,859 | | | | | | — | | | | | | 491,859 | | |
Total Revenue
|
| | | | 90,601,541 | | | | | | 7,866,743 | | | | | | 98,468,284 | | |
EXPENSES | | | | | | | | | | | | | | | | | | | |
Medical Expenses
|
| | | | 51,622,064 | | | | | | 5,236,698 | | | | | | 56,858,762 | | |
Administrative Expenses
|
| | | | 33,134,014 | | | | | | 1,258,679 | | | | | | 34,392,693 | | |
Total Expenses
|
| | | | 84,756,078 | | | | | | 6,495,377 | | | | | | 91,251,455 | | |
Net Income
|
| | | $ | 5,845,463 | | | | | $ | 1,371,366 | | | | | $ | 7,216,829 | | |
| | | | |
Tamarac acquisition
adjustments |
| |
CareMax
Pro Forma |
| ||||||||||
Net Income (Loss) Atttributable to Noncontrolling Interest
|
| | | | (173,194) | | | | | | | | | | | | (173,194) | | |
Net income attributable to controlling interest
|
| | | $ | 6,018,657 | | | | | $ | 1,371,366 | | | | | $ | 7,390,023 | | |
Net income per unit, basic and diluted
|
| | | $ | 30,093 | | | | | | — | | | | | $ | 36,950 | | |
|
| | | | |
Tamarac acquisition
adjustments |
| |
CareMax
Pro Forma |
| ||||||||||
REVENUE | | | | | | | | | | | | | | | | | | | |
Capitated Revenue
|
| | | $ | 71,873,280 | | | | | $ | 15,807,000 | | | | | $ | 87,680,280 | | |
Other Revenue
|
| | | | 508,184 | | | | | | 97,000 | | | | | | 605,184 | | |
Total Revenue
|
| | | | 72,381,464 | | | | | | 15,904,000 | | | | | | 88,285,464 | | |
EXPENSES | | | | | | | | | | | | | | | | | | | |
Medical Expenses
|
| | | | 44,158,597 | | | | | | 13,020,000 | | | | | | 57,178,597 | | |
Administrative Expenses
|
| | | | 24,737,228 | | | | | | 3,122,000 | | | | | | 27,859,228 | | |
Total Expenses
|
| | | | 68,895,825 | | | | | | 16,142,000 | | | | | | 85,037,825 | | |
Net Income (Loss)
|
| | | $ | 3,485,639 | | | | | $ | (238,000) | | | | | $ | 3,247,639 | | |
Net Income (Loss) Atttributable to Noncontrolling Interest
|
| | | | 16,471 | | | | | | | | | | | | 16,471 | | |
Net Income Atttributable to Controlling Interest
|
| | | $ | 3,469,168 | | | | | | | | | | | $ | 3,231,168 | | |
Net Income per unit, basic and diluted
|
| | | $ | 17,346 | | | | | | | | | | | $ | 16,156 | | |
| | | | | | ||||||||
| | |
(Unaudited)
|
| | | | | | | |||
ASSETS | | | | | | | | | | | | | |
CURRENT ASSETS
|
| | | | | | | | | | | | |
Cash
|
| | | $ | 16,261,505 | | | | | $ | 9,241,941 | | |
Capitation receivables, net
|
| | | | 10,789,251 | | | | | | 10,036,164 | | |
Other receivables
|
| | | | 3,987,780 | | | | | | 3,469,202 | | |
Prepaid expenses
|
| | | | 1,419,838 | | | | | | 1,145,825 | | |
TOTAL CURRENT ASSETS
|
| | | | 32,458,374 | | | | | | 23,893,132 | | |
RESERVE FUNDS HELD BY HEALTH PLANS
|
| | | | 1,544,467 | | | | | | 1,188,827 | | |
PROPERTY AND EQUIPMENT, NET
|
| | | | 7,352,306 | | | | | | 8,419,849 | | |
GOODWILL
|
| | | | 85,476,229 | | | | | | 85,476,229 | | |
INTANGIBLES, NET
|
| | | | 18,439,333 | | | | | | 19,659,584 | | |
SECURITY DEPOSITS
|
| | | | 411,458 | | | | | | 466,630 | | |
TOTAL ASSETS
|
| | | $ | 145,682,167 | | | | | $ | 139,104,251 | | |
LIABILITIES AND MEMBER’S EQUITY | | | | | | | | | | | | | |
CURRENT LIABILITIES
|
| | | | | | | | | | | | |
Accounts payable
|
| | | $ | 5,709,432 | | | | | $ | 3,909,544 | | |
Accrued expenses
|
| | | | 3,407,258 | | | | | | 3,432,243 | | |
Current portion of due to sellers
|
| | | | 565,000 | | | | | | 100,000 | | |
Current portion of capital leases
|
| | | | 540,001 | | | | | | 575,443 | | |
Current portion of note payable
|
| | | | 12,816 | | | | | | 12,816 | | |
Amounts due to health plans, net
|
| | | | 2,045,389 | | | | | | 3,444,674 | | |
TOTAL CURRENT LIABILITIES
|
| | | | 12,279,896 | | | | | | 11,474,720 | | |
LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS
|
| | | | 96,340,611 | | | | | | 89,125,717 | | |
DEFERRED PAYROLL TAXES
|
| | | | 782,352 | | | | | | — | | |
CAPITAL LEASES, NET OF CURRENT PORTION
|
| | | | 57,059 | | | | | | 380,145 | | |
DUE TO SELLERS, NET OF CURRENT PORTION
|
| | | | — | | | | | | 465,000 | | |
TOTAL LIABILITIES
|
| | | | 109,459,918 | | | | | | 101,445,582 | | |
COMMITMENTS AND CONTINGENCIES
|
| | | | | | | | | | | | |
MEMBER’S EQUITY
|
| | | | | | | | | | | | |
MEMBERSHIP UNITS (100 authorized, issued and outstanding as of September 30, 2020 and December 31, 2019)
|
| | | | — | | | | | | — | | |
CONTRIBUTED CAPITAL
|
| | | | 139,327,982 | | | | | | 139,327,982 | | |
RETAINED DEFICIT
|
| | | | (103,105,733) | | | | | | (101,669,313) | | |
TOTAL MEMBER’S EQUITY
|
| | | | 36,222,249 | | | | | | 37,658,669 | | |
TOTAL LIABILITIES AND MEMBER’S EQUITY
|
| | | $ | 145,682,167 | | | | | $ | 139,104,251 | | |
| | |
2020
|
| |
2019
|
| ||||||
REVENUES, NET
Revenue under global capitation |
| | | $ | 159,737,970 | | | | | $ | 139,421,044 | | |
Other managed care revenue
|
| | | | 8,476,663 | | | | | | 6,512,372 | | |
Other revenues
|
| | | | 152,962 | | | | | | 876,824 | | |
TOTAL REVENUES, NET
|
| | | | 168,367,595 | | | | | | 146,810,240 | | |
MEDICAL SERVICE EXPENSES | | |
|
| |
|
| ||||||
External medical services under global capitation
|
| | | | 117,300,617 | | | | | | 103,220,613 | | |
Other medical expenses
|
| | | | 5,283,888 | | | | | | 6,573,640 | | |
Direct medical salaries, wages and benefits
|
| | | | 15,494,804 | | | | | | 17,886,192 | | |
TOTAL MEDICAL SERVICE EXPENSES
|
| | | | 138,079,309 | | | | | | 127,680,445 | | |
GROSS PROFIT
|
| | | | 30,288,286 | | | | | | 19,129,795 | | |
OPERATING EXPENSES
Salaries, wages, and benefits |
| | | | 9,962,933 | | | | | | 9,697,336 | | |
General and administrative
|
| | | | 11,120,674 | | | | | | 15,372,886 | | |
Amortization of intangibles
|
| | | | 1,220,251 | | | | | | 1,220,251 | | |
Depreciation and amortization
|
| | | | 2,137,840 | | | | | | 2,286,388 | | |
TOTAL OPERATING EXPENSES
|
| | | | 24,441,698 | | | | | | 28,576,861 | | |
INCOME (LOSS) FROM OPERATIONS
|
| | | | 5,846,588 | | | | | | (9,447,066) | | |
INTEREST EXPENSE
|
| | | | 7,283,008 | | | | | | 7,010,561 | | |
NET LOSS
|
| | | $ | (1,436,420) | | | | | $ | (16,457,627) | | |
EARNINGS (LOSS) PER UNIT | | | | | | | | | | | | | |
Basic and Diluted
|
| | | $ | (14,364) | | | | | $ | (164,576) | | |
WEIGHTED AVERAGE NUMBER OF UNITS | | | | | | | | | | | | | |
Basic and Diluted
|
| | | | 100 | | | | | | 100 | | |
| | |
Membership
Units |
| |
Membership
Units (Amount) |
| |
Capital
Contributions |
| |
Retained Deficit
|
| |
Total
Member’s Equity |
| |||||||||||||||
BALANCE – JANUARY 1, 2020
|
| | | | 100 | | | | | $ | — | | | | | $ | 139,327,982 | | | | | $ | (101,669,313) | | | | | $ | 37,658,669 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (1,436,420) | | | | | | (1,436,420) | | |
BALANCE – SEPTEMBER 30, 2020
|
| | |
|
100
|
| | | |
$
|
—
|
| | | |
$
|
139,327,982
|
| | | |
$
|
(103,105,733)
|
| | | |
$
|
36,222,249
|
| |
|
| | |
Membership
Units |
| |
Membership
Units (Amount) |
| |
Capital
Contributions |
| |
Retained Deficit
|
| |
Total
Member’s Equity |
| |||||||||||||||
BALANCE – JANUARY 1, 2019
|
| | | | 100 | | | | | $ | — | | | | | $ | 121,972,000 | | | | | $ | (84,816,899) | | | | | $ | 37,155,101 | | |
Member contributions
|
| | | | — | | | | | | — | | | | | | 17,355,982 | | | | | | — | | | | | | 17,355,982 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (16,457,627) | | | | | | (16,457,627) | | |
BALANCE – SEPTEMBER 30, 2019
|
| | |
|
100
|
| | | |
$
|
—
|
| | | |
$
|
139,327,982
|
| | | |
$
|
(101,274,526)
|
| | | |
$
|
38,053,456
|
| |
| | |
2020
|
| |
2019
|
| ||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
| | | $ | (1,436,420) | | | | | $ | (16,457,627) | | |
Net loss
|
| | | | | | | | | | | | |
Reconciliation of net loss to net cash provided by (used in) operating activities:
|
| | | | | | | | | | | | |
Depreciation and amortization
|
| | | | 2,137,840 | | | | | | 2,286,388 | | |
Amortization of intangibles
|
| | | | 1,220,251 | | | | | | 1,220,251 | | |
In-kind interest added to long-term debt
|
| | | | 6,489,207 | | | | | | 6,617,607 | | |
Amortization of deferred financing fees
|
| | | | 735,147 | | | | | | 287,033 | | |
Inventory write-off
|
| | | | — | | | | | | 25,195 | | |
Changes in operating assets and liabilities:
|
| | | ||||||||||
Capitation receivables
|
| | | | (753,087) | | | | | | (3,847,551) | | |
Other receivables
|
| | | | (518,578) | | | | | | (108,796) | | |
Inventory
|
| | | | — | | | | | | 213,463 | | |
Income tax receivable
|
| | | | — | | | | | | 150,000 | | |
Prepaid expenses
|
| | | | (274,013) | | | | | | (91,808) | | |
Reserve funds held by health plans
|
| | | | (355,640) | | | | | | (339,063) | | |
Accounts payable
|
| | | | 1,799,888 | | | | | | 2,187,591 | | |
Accrued expenses
|
| | | | (24,985) | | | | | | 1,181,971 | | |
Amounts due to health plans
|
| | | | (1,399,285) | | | | | | 854,689 | | |
Deferred payroll tax liability
|
| | | | 782,352 | | | | | | — | | |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
|
| | | | 8,402,677 | | | | | | (5,820,657) | | |
CASH FLOWS FROM INVESTING ACTIVITIES | | | | | | | | | | | | | |
Purchases of property and equipment
|
| | | | (1,070,297) | | | | | | (2,431,354) | | |
Acquisitions, net of cash acquired
|
| | | | — | | | | | | (1,327,862) | | |
Security deposits
|
| | | | 55,172 | | | | | | (9,330) | | |
NET CASH USED IN INVESTING ACTIVITIES
|
| | | | (1,015,125) | | | | | | (3,768,546) | | |
CASH FLOWS FROM FINANCING ACTIVITIES | | | | | | | | | | | | | |
Repayments on capital leases
|
| | | | (358,528) | | | | | | (398,730) | | |
Repayments on notes payable
|
| | | | (9,460) | | | | | | — | | |
Member contributions
|
| | | | — | | | | | | 13,515,000 | | |
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES
|
| | | | (367,988) | | | | | | 13,116,270 | | |
NET INCREASE IN CASH
|
| | | | 7,019,564 | | | | | | 3,527,067 | | |
CASH – BEGINNING OF YEAR
|
| | | | 9,241,941 | | | | | | 5,667,749 | | |
CASH – END OF YEAR
|
| | |
$
|
16,261,505
|
| | | |
$
|
9,194,816
|
| |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | | | | | | | | | | | | | |
Interest paid
|
| | | $ | 58,655 | | | | | $ | 123,439 | | |
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND
FINANCING TRANSACTIONS: |
| | | | | | | | | | | | |
Purchase of property and equipment through issuance of note payable
|
| | | $ | — | | | | | $ | 42,257 | | |
Deferred financing costs of long-term debt upon modification
|
| | | $ | — | | | | | $ | 3,840,982 | | |
|
Cash
|
| | | $ | 72,138 | | |
|
Accounts receivable
|
| | | | 145,831 | | |
|
Prepaids expenses
|
| | | | 17,602 | | |
|
Accrued expenses
|
| | | | (21,773) | | |
|
Amounts due to health plans
|
| | | | (51,870) | | |
|
Goodwill
|
| | | | 1,638,072 | | |
|
Total purchase price
|
| | |
$
|
1,800,000
|
| |
|
Goodwill
|
| | | $ | 570,324 | | |
|
Total purchase price
|
| | |
$
|
570,324
|
| |
| | |
2020
|
| |
2019
|
| ||||||
Performance obligations satisfied over time
|
| | | $ | 168,214,633 | | | | | $ | 145,933,416 | | |
Performance obligations satisfied at a point in time
|
| | | | 152,962 | | | | | | 876,824 | | |
Total revenues, net
|
| | |
$
|
168,367,595
|
| | | |
$
|
146,810,240
|
| |
| | |
2020
|
| |
2019
|
| ||||||
Goodwill – opening balance
|
| | | $ | 85,476,229 | | | | | $ | 83,267,833 | | |
Additions to goodwill
|
| | | | — | | | | | | 2,208,396 | | |
| | | | $ | 85,476,229 | | | | | $ | 85,476,229 | | |
| | |
Estimated Life
(Years) |
| |
Gross Carrying
Amount |
| |
Accumulated
Amortization |
| |
Net Book
Value |
| ||||||||||||
Trademarks
|
| | | | 15 | | | | | $ | 24,405,000 | | | | | $ | (5,965,667) | | | | | $ | 18,439,333 | | |
| | | | | | | | | | $ | 24,405,000 | | | | | $ | (5,965,667) | | | | | $ | 18,439,333 | | |
|
| | |
Estimated Life
(Years) |
| |
Gross Carrying
Amount |
| |
Accumulated
Amortization |
| |
Net Book
Value |
| ||||||||||||
Trademarks
|
| | | | 15 | | | | | $ | 24,405,000 | | | | | $ | (4,745,416) | | | | | $ | 19,659,584 | | |
| | | | | | | | | | $ | 24,405,000 | | | | | $ | (4,745,416) | | | | | $ | 19,659,584 | | |
|
Remainder of 2020
|
| | | $ | 406,750 | | |
|
2021
|
| | | | 1,627,000 | | |
|
2022
|
| | | | 1,627,000 | | |
|
2023
|
| | | | 1,627,000 | | |
|
2024
|
| | | | 1,627,000 | | |
|
Thereafter
|
| | | | 11,524,583 | | |
| | | | | $ | 18,439,333 | | |
| | |
Useful Life
|
| |
2020
|
| |
2019
|
| ||||||
Furniture, fixtures and office equipment
|
| |
5 years
|
| | | $ | 2,917,348 | | | | | $ | 2,780,161 | | |
Leasehold improvements
|
| |
Lesser of lease term or 15 years
|
| | | | 4,513,465 | | | | | | 4,053,863 | | |
Medical equipment
|
| |
15 years
|
| | | | 480,064 | | | | | | 441,995 | | |
Vehicles
|
| |
5 years
|
| | | | 2,408,689 | | | | | | 2,330,965 | | |
Software
|
| |
3 years
|
| | | | 5,377,662 | | | | | | 5,040,476 | | |
| | | | | | | | 15,697,228 | | | | | | 14,647,460 | | |
Less: accumulated depreciation
|
| | | | | | | (8,344,922) | | | | | | (6,227,611) | | |
| | | | | | | $ | 7,352,306 | | | | | $ | 8,419,849 | | |
| | |
2020
|
| |
2019
|
| ||||||
Plan
|
| |
Capitation
Receivable |
| |
Capitation
Receivable |
| ||||||
A
|
| | | | 9% | | | | | | 22% | | |
B
|
| | | | 29% | | | | | | 39% | | |
C
|
| | | | 22% | | | | | | 16% | | |
D
|
| | | | 14% | | | | | | 5% | | |
F
|
| | | | 17% | | | | | | 11% | | |
All other
|
| | | | 9% | | | | | | 7% | | |
| | | | | 100% | | | | | | 100% | | |
| | |
2020
|
| |
2019
|
| ||||||
Plan
|
| |
Capitation
Revenues |
| |
Capitation
Revenues |
| ||||||
A
|
| | | | 29% | | | | | | 30% | | |
B
|
| | | | 18% | | | | | | 23% | | |
C
|
| | | | 11% | | | | | | 14% | | |
D
|
| | | | 14% | | | | | | 16% | | |
F
|
| | | | 10% | | | | | | 9% | | |
All other
|
| | | | 18% | | | | | | 8% | | |
| | | | | 100% | | | | | | 100% | | |
| | |
2020
|
| |
2019
|
| ||||||
Note payable
|
| | | $ | 29,412 | | | | | $ | 38,872 | | |
Less current portion
|
| | | | (12,816) | | | | | | (12,816) | | |
Note payable, net of current portion
|
| | | $ | 16,596 | | | | | $ | 26,056 | | |
| | |
Related Party
Amounts |
| |
Non Related Part
yAmounts |
| |
Total
|
| |||||||||
Remainder of 2020
|
| | | $ | 342,288 | | | | | $ | 429,657 | | | | | $ | 771,945 | | |
2021
|
| | | | 1,398,353 | | | | | | 1,148,818 | | | | | | 2,547,171 | | |
2022
|
| | | | 1,083,458 | | | | | | 773,664 | | | | | | 1,857,122 | | |
2023
|
| | | | 304,279 | | | | | | 524,490 | | | | | | 828,769 | | |
2024
|
| | | | 162,526 | | | | | | 339,127 | | | | | | 501,653 | | |
Thereafter
|
| | | | 235,873 | | | | | | 77,116 | | | | | | 312,989 | | |
| | | | $ | 3,526,777 | | | | | $ | 3,292,872 | | | | | $ | 6,819,649 | | |
|
Remainder of 2020
|
| | | $ | 225,502 | | |
|
2021
|
| | | | 389,574 | | |
|
Total minimum lease payments
|
| | | | 615,076 | | |
|
Less the amount representing interest (7.05%)
|
| | | | (18,016) | | |
|
Present value of minimum lease payments
|
| | | | 597,060 | | |
|
Less current maturities
|
| | | | (540,001) | | |
|
Capital leases, net of current portion
|
| | | $ | 57,059 | | |
|
Remainder of 2020
|
| | | $ | 225,502 | | |
|
2021
|
| | | | 389,574 | | |
| | | | | $ | 615,076 | | |
| | | | |
2018
|
| |||||||
ASSETS | | | | | | | | | | | | | |
CURRENT ASSETS | | | | | | | | | | | | | |
Cash
|
| | | $ | 9,241,941 | | | | | $ | 5,667,749 | | |
Capitation receivables, net
|
| | | | 10,036,164 | | | | | | 7,842,006 | | |
Other receivables
|
| | | | 3,469,202 | | | | | | 2,263,903 | | |
Inventory
|
| | | | — | | | | | | 238,658 | | |
Income tax receivable
|
| | | | — | | | | | | 150,000 | | |
Prepaid expenses
|
| | | | 1,145,825 | | | | | | 1,038,346 | | |
TOTAL CURRENT ASSETS
|
| | | | 23,893,132 | | | | | | 17,200,662 | | |
RESERVE FUNDS HELD BY HEALTH PLANS
|
| | | | 1,188,827 | | | | | | 968,827 | | |
PROPERTY AND EQUIPMENT, NET
|
| | | | 8,419,849 | | | | | | 8,169,448 | | |
GOODWILL
|
| | | | 85,476,229 | | | | | | 83,267,833 | | |
INTANGIBLES, NET
|
| | | | 19,659,584 | | | | | | 21,286,584 | | |
SECURITY DEPOSITS
|
| | | | 466,630 | | | | | | 428,815 | | |
TOTAL ASSETS
|
| | |
$
|
139,104,251
|
| | | |
$
|
131,322,169
|
| |
LIABILITIES AND MEMBER’S EQUITY | | | | | | | | | | | | | |
CURRENT LIABILITIES | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 3,909,544 | | | | | $ | 2,271,072 | | |
Accrued expenses
|
| | | | 3,432,243 | | | | | | 2,729,651 | | |
Current portion of due to sellers
|
| | | | 100,000 | | | | | | — | | |
Current portion of capital leases
|
| | | | 575,443 | | | | | | 536,381 | | |
Current portion of note payable
|
| | | | 12,816 | | | | | | — | | |
Amounts due to health plans, net
|
| | | | 3,444,674 | | | | | | 4,117,541 | | |
TOTAL CURRENT LIABILITIES
|
| | | | 11,474,720 | | | | | | 9,654,645 | | |
LONG-TERM DEBT, NET OF DEFERRED FINANCING FEES
|
| | | | 89,125,717 | | | | | | 83,556,835 | | |
CAPITAL LEASES, NET OF CURRENT PORTION
|
| | | | 380,145 | | | | | | 955,588 | | |
DUE TO SELLERS, NET OF CURRENT PORTION
|
| | | | 465,000 | | | | | | — | | |
TOTAL LIABILITIES
|
| | | | 101,445,582 | | | | | | 94,167,068 | | |
COMMITMENTS AND CONTINGENCIES
|
| | | | | | | | | | | | |
MEMBER’S EQUITY | | | | | | | | | | | | | |
MEMBERSHIP UNITS (100 authorized, issued and outstanding as of December 31, 2019 and 2018)
|
| | | | — | | | | | | — | | |
CONTRIBUTED CAPITAL
|
| | | | 139,327,982 | | | | | | 121,972,000 | | |
RETAINED DEFICIT
|
| | | | (101,669,313) | | | | | | (84,816,899) | | |
TOTAL MEMBER’S EQUITY
|
| | | | 37,658,669 | | | | | | 37,155,101 | | |
TOTAL LIABILITIES AND MEMBER’S EQUITY
|
| | | $ | 139,104,251 | | | | | $ | 131,322,169 | | |
|
| | | | |
2018
|
| |||||||
REVENUES, NET | | | | | | | | | | | | | |
Revenue under global capitation
|
| | | $ | 184,333,971 | | | | | $ | 190,012,843 | | |
Other managed care revenue
|
| | | | 9,764,520 | | | | | | 9,435,357 | | |
Other revenues
|
| | | | 946,648 | | | | | | 1,437,810 | | |
TOTAL REVENUES, NET
|
| | | | 195,045,139 | | | | | | 200,886,010 | | |
MEDICAL SERVICE EXPENSES | | | | | | | | | | | | | |
External medical services under global capitation
|
| | | | 135,527,074 | | | | | | 146,355,834 | | |
Other medical expenses
|
| | | | 8,379,941 | | | | | | 7,842,808 | | |
Direct medical salaries, wages and benefits
|
| | | | 23,156,419 | | | | | | 22,062,284 | | |
TOTAL MEDICAL SERVICE EXPENSES
|
| | | | 167,063,434 | | | | | | 176,260,926 | | |
GROSS PROFIT
|
| | | | 27,981,705 | | | | | | 24,625,084 | | |
OPERATING EXPENSES | | | | | | | | | | | | | |
Salaries, wages, and benefits
|
| | | | 12,889,934 | | | | | | 14,753,205 | | |
General and administrative
|
| | | | 17,992,950 | | | | | | 15,774,688 | | |
Amortization of intangibles
|
| | | | 1,627,000 | | | | | | 1,632,000 | | |
Depreciation and amortization
|
| | | | 2,816,988 | | | | | | 2,082,362 | | |
Impairment of goodwill and intangible assets
|
| | | | — | | | | | | 65,559,076 | | |
TOTAL OPERATING EXPENSES
|
| | | | 35,326,872 | | | | | | 99,801,331 | | |
LOSS FROM OPERATIONS
|
| | | | (7,345,167) | | | | | | (75,176,247) | | |
INTEREST EXPENSE
|
| | | | 9,507,247 | | | | | | 9,410,679 | | |
NET LOSS
|
| | | $ | (16,852,414) | | | | | $ | (84,586,926) | | |
EARNINGS (LOSS) PER UNIT | | | | | | | | | | | | | |
Basic and Diluted
|
| | | $ | (168,524) | | | | | $ | (845,869) | | |
WEIGHTED AVERAGE NUMBER OF UNITS | | | | | | | | | | | | | |
Basic and Diluted
|
| | | | 100 | | | | | | 100 | | |
| | |
Membership
Units |
| |
Membership
Units (Amount) |
| |
Capital
Contributions |
| |
Retained Deficit
|
| |
Total
Member’s Equity |
| |||||||||||||||
BALANCE – JANUARY 1, 2018
|
| | | | 100 | | | | | $ | — | | | | | $ | 114,972,000 | | | | | $ | (229,973) | | | | | $ | 114,742,027 | | |
Member contributions
|
| | | | — | | | | | | — | | | | | | 7,000,000 | | | | | | — | | | | | | 7,000,000 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (84,586,926) | | | | | | (84,586,926) | | |
BALANCE – DECEMBER 31, 2018
|
| | | | 100 | | | | | | — | | | | | | 121,972,000 | | | | | | (84,816,899) | | | | | | 37,155,101 | | |
Member contributions
|
| | | | — | | | | | | — | | | | | | 17,355,982 | | | | | | — | | | | | | 17,355,982 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (16,852,414) | | | | | | (16,852,414) | | |
BALANCE – DECEMBER 31, 2019
|
| | |
|
100
|
| | | |
$
|
—
|
| | | |
$
|
139,327,982
|
| | | |
$
|
(101,669,313)
|
| | | |
$
|
37,658,669
|
| |
| | | | |
2018
|
| |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | | | | | | | | | | | | | |
Net loss
|
| | | $ | (16,852,414) | | | | | $ | (84,586,926) | | |
Reconciliation of net loss to net cash used in operating activities:
|
| | | | | | | | | | | | |
Depreciation and amortization
|
| | | | 2,816,988 | | | | | | 2,082,362 | | |
Impairment of goodwill and intangible assets
|
| | | | — | | | | | | 65,559,076 | | |
Amortization of intangibles
|
| | | | 1,627,000 | | | | | | 1,632,000 | | |
In-kind interest added to long-term debt
|
| | | | 8,851,726 | | | | | | 3,210,502 | | |
Amortization of deferred financing fees
|
| | | | 532,082 | | | | | | 212,000 | | |
Loss on the sale of equipment
|
| | | | 36,696 | | | | | | 211,202 | | |
Inventory write-off
|
| | | | 25,195 | | | | | | — | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Capitation plan receivables
|
| | | | (2,194,158) | | | | | | 2,747,170 | | |
Other receivables
|
| | | | (1,059,468) | | | | | | (1,548,049) | | |
Inventory
|
| | | | 213,463 | | | | | | 68,840 | | |
Income tax receivable
|
| | | | 150,000 | | | | | | 936,450 | | |
Prepaid expenses
|
| | | | (89,877) | | | | | | (367,991) | | |
Reserve funds held by health plans
|
| | | | (220,000) | | | | | | 422,752 | | |
Accounts payable
|
| | | | 1,638,472 | | | | | | (201,369) | | |
Accrued expenses
|
| | | | 680,819 | | | | | | 812,380 | | |
Amounts due to health plans
|
| | | | (745,061) | | | | | | 1,491,639 | | |
NET CASH USED IN OPERATING ACTIVITIES
|
| | | | (4,588,537) | | | | | | (7,317,962) | | |
CASH FLOWS FROM INVESTING ACTIVITIES | | | | | | | | | | | | | |
Purchases of property and equipment
|
| | | | (3,061,828) | | | | | | (3,480,177) | | |
Proceeds from the sale of equipment
|
| | | | — | | | | | | 681,037 | | |
Acquisitions, net of cash acquired
|
| | | | (1,712,862) | | | | | | — | | |
Security deposits
|
| | | | (37,815) | | | | | | 57,636 | | |
NET CASH USED IN INVESTING ACTIVITIES
|
| | | | (4,812,505) | | | | | | (2,741,504) | | |
CASH FLOWS FROM FINANCING ACTIVITIES | | | | | | | | | | | | | |
Repayments on capital leases
|
| | | | (536,381) | | | | | | (192,104) | | |
Repayments on notes payable
|
| | | | (3,385) | | | | | | — | | |
Member contributions
|
| | | | 13,515,000 | | | | | | 7,000,000 | | |
NET CASH PROVIDED BY FINANCING ACTIVITIES
|
| | | | 12,975,234 | | | | | | 6,807,896 | | |
NET INCREASE (DECREASE) IN CASH
|
| | | | 3,574,192 | | | | | | (3,251,570) | | |
CASH – BEGINNING OF YEAR
|
| | | | 5,667,749 | | | | | | 8,919,319 | | |
CASH – END OF YEAR
|
| | |
$
|
9,241,941
|
| | | |
$
|
5,667,749
|
| |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | | | | | | | | | | | | | |
Interest paid
|
| | | $ | 123,439 | | | | | $ | 5,988,238 | | |
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING TRANSACTIONS:
|
| | | | | | | | | | | | |
Purchase of property and equipment through issuance of capital leases
|
| | | $ | — | | | | | $ | 1,684,074 | | |
Purchase of property equipment through issuance of note payable
|
| | | $ | 42,257 | | | | | $ | — | | |
Deferred financing costs of long-term debt upon modification
|
| | | $ | 3,840,982 | | | | | $ | — | | |
|
Cash
|
| | | $ | 72,138 | | |
|
Accounts receivable
|
| | | | 145,831 | | |
|
Prepaids expenses
|
| | | | 17,602 | | |
|
Accrued expenses
|
| | | | (21,773) | | |
|
Amounts due to health plans
|
| | | | (51,870) | | |
|
Goodwill
|
| | | | 1,638,072 | | |
|
Total purchase price
|
| | |
$
|
1,800,000
|
| |
|
Goodwill
|
| | | $ | 570,324 | | |
|
Total purchase price
|
| | |
$
|
570,324
|
| |
| | |
2019
|
| |
2018
|
| ||||||
Performance obligations satisfied over time
|
| | | $ | 191,932,447 | | | | | $ | 198,827,700 | | |
Performance obligations satisfied at a point in time
|
| | | | 3,112,692 | | | | | | 2,058,310 | | |
Total revenues, net
|
| | |
$
|
195,045,139
|
| | | |
$
|
200,886,010
|
| |
| | |
2019
|
| |
2018
|
| ||||||
Goodwill – opening balance
|
| | | $ | 83,267,833 | | | | | $ | 148,691,076 | | |
Additions to goodwill
|
| | | | 2,208,396 | | | | | | — | | |
Impairment
|
| | | | — | | | | | | (65,423,243) | | |
| | | | $ | 85,476,229 | | | | | $ | 83,267,833 | | |
| | |
Estimated Life
(Years) |
| |
Gross Carrying
Amount |
| |
Accumulated
Amortization |
| |
Net Book
Value |
| |||||||||
Trademarks
|
| |
15
|
| | | $ | 24,405,000 | | | | | $ | (4,745,416) | | | | | $ | 19,659,584 | | |
| | | | | | | $ | 24,405,000 | | | | | $ | (4,745,416) | | | | | $ | 19,659,584 | | |
| | |
Estimated Life
(Years) |
| |
Gross Carrying
Amount |
| |
Accumulated
Amortization |
| |
Net Book
Value |
| |||||||||
Trademarks
|
| |
15
|
| | | $ | 24,405,000 | | | | | $ | (3,118,416) | | | | | $ | 21,286,584 | | |
| | | | | | | $ | 24,405,000 | | | | | $ | (3,118,416) | | | | | $ | 21,286,584 | | |
|
| Years ending December 31: | | | | | | | |
|
2020
|
| | | $ | 1,627,000 | | |
|
2021
|
| | | | 1,627,000 | | |
|
2022
|
| | | | 1,627,000 | | |
|
2023
|
| | | | 1,627,000 | | |
|
2024
|
| | | | 1,627,000 | | |
|
Thereafter
|
| | | | 11,524,584 | | |
| | | | | $ | 19,659,584 | | |
| | |
Useful Life
|
| |
2019
|
| |
2018
|
| ||||||
Furniture, fixtures and office equipment
|
| |
5 years
|
| | | $ | 2,780,161 | | | | | $ | 2,453,329 | | |
Leasehold improvements
|
| |
Lesser of lease term or 15 years
|
| | | | 4,053,863 | | | | | | 3,002,326 | | |
Medical equipment
|
| |
15 years
|
| | | | 441,995 | | | | | | 369,997 | | |
Vehicles
|
| |
5 years
|
| | | | 2,330,965 | | | | | | 2,466,521 | | |
Software
|
| |
3 years
|
| | | | 5,040,476 | | | | | | 2,933,550 | | |
| | | | | | | | 14,647,460 | | | | | | 11,225,723 | | |
Less: accumulated depreciation
|
| | | | | | | (6,227,611) | | | | | | (3,056,275) | | |
| | | | | | | $ | 8,419,849 | | | | | $ | 8,169,448 | | |
| | |
2019
|
| |
2018
|
| ||||||||||||||||||
Plan
|
| |
Capitated
Plan Receivable |
| |
Revenue
|
| |
Capitated
Plan Receivable |
| |
Revenue
|
| ||||||||||||
A
|
| | | | 22% | | | | | | 29% | | | | | | 26% | | | | | | 25% | | |
B
|
| | | | 39% | | | | | | 22% | | | | | | 23% | | | | | | 25% | | |
C
|
| | | | 16% | | | | | | 14% | | | | | | 23% | | | | | | 11% | | |
D
|
| | | | 5% | | | | | | 15% | | | | | | 22% | | | | | | 10% | | |
E
|
| | | | 0% | | | | | | 1% | | | | | | 0% | | | | | | 11% | | |
F
|
| | | | 11% | | | | | | 13% | | | | | | 3% | | | | | | 9% | | |
All other
|
| | | | 7% | | | | | | 6% | | | | | | 3% | | | | | | 9% | | |
| | | | | 100% | | | | | | 100% | | | | | | 100% | | | | | | 100% | | |
| | |
2019
|
| |||
Note payable
|
| | | $ | 38,872 | | |
Less current portion
|
| | | | (12,816) | | |
Note payable, net of current portion
|
| | | $ | 26,056 | | |
| | |
Related Party
Amounts |
| |
Non Related Party
Amounts |
| |
Total
|
| |||||||||
Years ending December 31: | | | | | | | | | | | | | | | | | | | |
2020
|
| | | $ | 1,369,151 | | | | | $ | 1,718,629 | | | | | $ | 3,087,780 | | |
2021
|
| | | | 1,398,353 | | | | | | 1,148,818 | | | | | | 2,547,171 | | |
2022
|
| | | | 1,083,458 | | | | | | 773,664 | | | | | | 1,857,122 | | |
2023
|
| | | | 304,279 | | | | | | 524,490 | | | | | | 828,769 | | |
2024
|
| | | | 162,526 | | | | | | 339,127 | | | | | | 501,653 | | |
Thereafter
|
| | | | 235,873 | | | | | | 77,116 | | | | | | 312,989 | | |
| | | | $ | 4,553,640 | | | | | $ | 4,581,844 | | | | | $ | 9,135,484 | | |
| Years ending December 31: | | | | | | | |
|
2020
|
| | | $ | 624,454 | | |
|
2021
|
| | | | 389,574 | | |
|
Total minimum lease payments
|
| | | | 1,014,028 | | |
|
Less the amount representing interest (7.05%)
|
| | | | (58,440) | | |
|
Present value of minimum lease payments
|
| | | | 955,588 | | |
|
Less current maturities
|
| | | | (575,443) | | |
|
Capital leases, net of current portion
|
| | | $ | 380,145 | | |
| Years ending December 31: | | | | | | | |
|
2020
|
| | | $ | 624,454 | | |
|
2021
|
| | | | 389,574 | | |
| | | | | $ | 1,014,028 | | |
| | |
Class A Units
|
| |
Class B-1 Units
|
| |
Class B-2 Units
|
| |
Class B-3 Units
|
|
Holding period
|
| |
5
|
| |
5
|
| |
5
|
| |
5
|
|
Risk-free rate
|
| |
1.69%
|
| |
1.69%
|
| |
1.69%
|
| |
1.69%
|
|
Volatility
|
| |
33.6%
|
| |
33.6%
|
| |
33.6%
|
| |
33.6%
|
|
Dividend yield
|
| |
0%
|
| |
0%
|
| |
0%
|
| |
0%
|
|
| | |
Class A Units
|
| |
Class B-1 Units
|
| |
Class B-2 Units
|
| |
Class B-3 Units
|
|
Holding period
|
| |
5
|
| |
5
|
| |
5
|
| |
5
|
|
Risk-free rate
|
| |
2.51%
|
| |
2.51%
|
| |
2.51%
|
| |
2.51%
|
|
Volatility
|
| |
34.1%
|
| |
34.1%
|
| |
34.1%
|
| |
34.1%
|
|
Dividend yield
|
| |
0%
|
| |
0%
|
| |
0%
|
| |
0%
|
|
| | |
Number of PIU’s
2019 |
| |
Number of PIU’s
2018 |
| ||||||
Beginning balance
|
| | | | 33,101,708 | | | | | | — | | |
Granted
|
| | | | 3,395,855 | | | | | | 33,101,708 | | |
Forfeited
|
| | | | (8,176,117) | | | | | | — | | |
Ending balance
|
| | |
|
28,321,446
|
| | | |
|
33,101,708
|
| |
Vested balance
|
| | |
|
9,983,819
|
| | | |
|
9,489,182
|
| |
| | |
2019
|
| |
2018
|
| ||||||
Federal taxes at statutory rate
|
| | | $ | (3,539,007) | | | | | $ | (17,763,254) | | |
State income tax, net of federal tax benefit
|
| | | | (755,770) | | | | | | (3,069,042) | | |
Permanent differences
|
| | | | (11,346) | | | | | | 2,930,141 | | |
Other
|
| | | | (353,115) | | | | | | 315,753 | | |
Change in valuation allowance
|
| | | | 4,659,238 | | | | | | 17,586,402 | | |
Total income taxes
|
| | | $ | — | | | | | $ | — | | |
|
| | |
2019
|
| |
2018
|
| ||||||
Deferred tax assets: | | | | | | | | | | | | | |
Equipment and improvements
|
| | | $ | 577,659 | | | | | $ | 360,003 | | |
Goodwill
|
| | | | 6,926,239 | | | | | | 9,703,604 | | |
Accrued expenses
|
| | | | 230,300 | | | | | | 84,221 | | |
Deferred rent
|
| | | | 38,782 | | | | | | 30,050 | | |
Charitable contribution
|
| | | | 5,138 | | | | | | 3,072 | | |
Sec 163(j) interest expense limitation
|
| | | | 4,713,375 | | | | | | 2,385,118 | | |
Accrued payroll
|
| | | | 163,270 | | | | | | 243,490 | | |
Purchase vs lease
|
| | | | 93,079 | | | | | | — | | |
Net operating loss carryforwards
|
| | | | 9,692,874 | | | | | | 5,895,729 | | |
| | | | | 22,440,716 | | | | | | 18,705,287 | | |
Less valuation allowance
|
| | | | (22,245,662) | | | | | | (17,591,200) | | |
| | | | | 195,054 | | | | | | 1,114,087 | | |
Deferred tax liabilities: | | | | | | | | | | | | | |
Intangible assets
|
| | | | — | | | | | | 935,318 | | |
Prepaid expenses
|
| | | | 195,054 | | | | | | 178,769 | | |
| | | | | 195,054 | | | | | | 1,114,087 | | |
| | | | $ | — | | | | | $ | — | | |
| | |
Page
|
| ||||||
Section 4.14 | | | | | | | A-26 | | | |
Section 4.15 | | | | | | | A-27 | | | |
Section 4.16 | | | | | | | A-28 | | | |
Section 4.17 | | | | | | | A-28 | | | |
Section 4.18 | | | | | | | A-29 | | | |
Section 4.19 | | | | | | | A-30 | | | |
Section 4.20 | | | | | | | A-30 | | | |
Section 4.21 | | | | | | | A-30 | | | |
Section 4.22 | | | | | | | A-31 | | | |
Section 4.23 | | | | | | | A-31 | | | |
Section 4.24 | | | | | | | A-32 | | | |
Section 4.25 | | | | | | | A-32 | | | |
Section 4.26 | | | | | | | A-32 | | | |
ARTICLE V REPRESENTATIONS AND WARRANTIES OF DFHT | | | | | A-32 | | | |||
Section 5.01 | | | | | | | A-33 | | | |
Section 5.02 | | | | | | | A-33 | | | |
Section 5.03 | | | | | | | A-34 | | | |
Section 5.04 | | | | | | | A-34 | | | |
Section 5.05 | | | | | | | A-34 | | | |
Section 5.06 | | | | | | | A-34 | | | |
Section 5.07 | | | | | | | A-35 | | | |
Section 5.08 | | | | | | | A-35 | | | |
Section 5.09 | | | | | | | A-36 | | | |
Section 5.10 | | | | | | | A-36 | | | |
Section 5.11 | | | | | | | A-37 | | | |
Section 5.12 | | | | | | | A-37 | | | |
Section 5.13 | | | | | | | A-38 | | | |
Section 5.14 | | | | | | | A-39 | | | |
Section 5.15 | | | | | | | A-39 | | | |
Section 5.16 | | | | | | | A-39 | | | |
Section 5.17 | | | | | | | A-39 | | | |
Section 5.18 | | | | | | | A-39 | | | |
Section 5.19 | | | | | | | A-40 | | | |
Section 5.20 | | | | | | | A-40 | | | |
Section 5.21 | | | | | | | A-40 | | | |
Section 5.22 | | | | | | | A-41 | | | |
ARTICLE VI COVENANTS | | | | | A-41 | | | |||
Section 6.01 | | | | | | | A-41 | | | |
Section 6.02 | | | | | | | A-46 | | | |
Section 6.03 | | | | | | | A-46 | | | |
Section 6.04 | | | | | | | A-47 | | | |
Section 6.05 | | | | | | | A-48 | | |
| | |
Page
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Section 10.06 | | | | | | | A-70 | | | |
Section 10.07 | | | | | | | A-71 | | | |
Section 10.08 | | | | | | | A-71 | | | |
Section 10.09 | | | | | | | A-71 | | | |
Section 10.10 | | | | | | | A-71 | | | |
Section 10.11 | | | | | | | A-72 | | | |
Section 10.12 | | | | | | | A-73 | | | |
Section 10.13 | | | | | | | A-73 | | | |
Section 10.14 | | | | | | | A-74 | | | |
Section 10.15 | | | | | | | A-74 | | | |
Section 10.16 | | | | | | | A-74 | | | |
Section 10.17 | | | | | | | A-75 | | | |
Section 10.18 | | | | | | | A-76 | | | |
Section 10.19 | | | | | | | A-76 | | | |
Section 10.20 | | | | | | | A-76 | | | |
Section 10.21 | | | | | | | A-76 | | | |
Annex | | | | | | | | | | |
Annex I | | | | | | | A-82 | | | |
Annex II | | | | | | | A-83 | | | |
Exhibits | | | | | | | | | | |
Exhibit A | | | CareMax Pre-Closing Reorganization | | | | | | | |
Exhibit B | | | A&R Registration Rights Agreement | | | | | | | |
Exhibit C | | | Lockup Agreement | | | | | | | |
Exhibit D | | | Working Capital Calculation | | | | | | | |
Exhibit E | | | Form of DFHT Third Amended and Restated Certificate of Incorporation | | | | | | | |
Exhibit F | | | Form of DFHT Amended and Restated Bylaws | | | | | | | |
| DEERFIELD HEALTHCARE TECHNOLOGY ACQUISITIONS CORP. | | |||||||||
| By: | | |
|
| | |||||
| | | | Name: | | | Christopher Wolfe | | | ||
| | | | Title: | | | Chief Financial Officer | | |
| CAREMAX MEDICAL GROUP L.L.C. | | |||||||||
| By: | | |
|
| | |||||
| | | | Name: | | | Carlos A. de Solo | | | ||
| | | | Title: | | | Manager | | |
| O.M. INVESTMENT GROUP, INC. | | |||||||||
| By: | | |
|
| | |||||
| | | | Name: | | | Carlos A. de Solo | | | ||
| | | | Title: | | | Chief Executive Officer | | |
| C.G.D. INVESTMENT GROUP, INC. | | |||||||||
| By: | | |
|
| | |||||
| | | | Name: | | | Alberto R. de Solo | | | ||
| | | | Title: | | | Chief Executive Officer | | | ||
| JOSEPH N. DE VERA, INC. | | |||||||||
| By: | | |
|
| | |||||
| | | | Name: | | | Joseph N. De Vera | | | ||
| | | | Title: | | | Chief Executive Officer | | | ||
| NKP CAREMAX, LLC | | |||||||||
| By: | | |
/s/ Nayan K. Pathak
|
| | |||||
| | | | Name: | | | Nayan K. Pathak | | | ||
| | | | Title: | | | Manager | | | ||
| MOUQUIN TROTTER, INC. | | |||||||||
| By: | | |
/s/ Benjamin Quirk
|
| | |||||
| | | | Name: | | | Benjamin Quirk | | | ||
| | | | Title: | | | President | | |
| IMC MEDICAL GROUP HOLDINGS, LLC | | |||||||||
| By: | | |
|
| | |||||
| | | | Name: | | | William C. Lamoreaux | | | ||
| | | | Title: | | | Chief Executive Officer | | |
| IMC HOLDINGS, LLC | | |||||||||
| By: | | |
|
| | |||||
| | | | Name: | | | William C. Lamoreaux | | | ||
| | | | Title: | | | Chief Executive Officer | | |
| DEERFIELD PARTNERS, L.P. | | |||||||||
| By: | | | Deerfield Mgmt, L.P. | | | |||||
| | | | General Partner | | | |||||
| By: | | | J.E. Flynn Capital, LLC | | | |||||
| | | | General Partner | | | |||||
| By: | | |
/s/ David J. Clark
|
| | |||||
| | | | Name: | | | David J. Clark | | | ||
| | | | Title: | | | Authorized Signatory | | |
| | | |
CareMax, Inc.
|
| |||
| | | | By: | | |
Name:
Title: |
|
| | |
Page
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| | | | D-1 | | | |
| | | | D-1 | | | |
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| | | | D-15 | | | |
| | | | D-15 | | |
|
/s/ Richard Barasch
|
| | | |
|
/s/ Steven Hochberg
|
| | | |
|
|
| | | |
|
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| | | |
|
/s/ Linda Grais
|
| | | |
|
/s/ David J. Shulkin
|
| | | |
| O.M. INVESTMENT GROUP, INC. | | | | | |||
| By: | | |
Name:
|
| | ||
| | | |
Title:
Chief Executive Officer
|
| | ||
| Address: | | | | | | | |
| Email: | | | | | | | |
| C.G.D. INVESTMENT GROUP, INC. | | | | | |||
| By: | | |
Name:
|
| | ||
| | | |
Title:
Chief Executive Officer
|
| | | |
| Address: | | | | | | ||
| Email: | | | | | | ||
| JOSEPH N. DE VERA, INC. | | | | | |||
| By: | | |
Name:
|
| | ||
| | | |
Title:
Chief Executive Officer
|
| | ||
| Address: | | | | | | ||
| Email: | | | | | | ||
| NKP CAREMAX, LLC | | | | | |||
| By: | | |
/s/ Nayan K. Pathak
Name:
|
| | ||
| | | |
Title:
Manager
|
| | ||
| Address: | | | | | | ||
| Email: | | | | | | ||
| MOUQUIN TROTTER, INC. | | | | | |||
| By: | | |
/s/ Benjamin Quirk
Name:
|
| | ||
| | | |
Title:
President
|
| | ||
| Address: | | | | | | ||
| Email: | | | | | |
| IMC HOLDINGS, LLC | | | | | |||
| By: | | |
Name:
|
| | ||
| | | |
Title:
Chief Executive Officer
|
| | ||
| Address: | | | | | | ||
| Email: | | | | | |
|
DEERFIELD HEALTHCARE TECHNOLOGY
ACQUISITIONS CORP. |
| | | | |||
| By: | | |
Name:Christopher Wolfe
|
| | ||
| | | | Title:Chief Financial Officer | | |
| | | | [•] | |
| | | |
By:
|
|
| | | | Its: | |
| | | | Address for Notices: [•] | |
| | | | [•] | |
| | | | [•] | |
| | | | [•] | |
Investor
|
| |
Address
|
|
DFHTA Sponsor LLC | | |
DFHTA Sponsor LLC
780 Third Avenue, 37th Floor New York, NY 10017 E-mail: latinsky@deerfield.com Attn: Lawrence Atinsky With a copy (which shall not be deemed to constitute notice) to: Katten Muchin Rosenman LLP 525 West Monroe Street Chicago, IL 60661 Facsimile No.: (312) 902-5493 Telephone No.: (312) 902-1061 Attn: Mark D. Wood Email: mark.wood@katten.com |
|
Deerfield Partners, L.P.
Steven Hochberg |
| |
Deerfield Partners, L.P.
780 Third Avenue, 37th Floor New York, NY 10017 E-mail: dclark@deerfield.com Attn: David J. Clark With a copy (which shall not be deemed to constitute notice) to: Katten Muchin Rosenman LLP 525 West Monroe Street Chicago, IL 60661 Facsimile No.: (312) 902-5493 Telephone No.: (312) 902-1061 Attn: Mark D. Wood Email: mark.wood@katten.com |
|
IMC Holdings, LLC | | |
IMC Holdings, LLC
c/o Comvest Investment Partners Holdings, LLC 525 Okeechobee Boulevard, Suite 1010 West Palm Beach, Florida 33401 Email: r.marrero@comvest.com and m.griffin@comvest.com Attention: Roger Marrero and Marshal Griffin With a copy (which shall not be deemed to constitute notice) to: McDermott Will & Emery LLP 333 Avenue of the Americas, Suite 4500 Miami, Florida 33131 Email: flevenson@mwe.com and ibarakat@mwe.com Attention: Fred Levenson and Ibrahim Barakat |
|
O.M. Investment Group, Inc. | | |
O.M. Investment Group, Inc.
8700 West Flagler Street Ste. 400 Miami, FL 33174 Attn: Carlos A. de Solo Email: carlos@caremax.net |
|
Investor
|
| |
Address
|
|
C.G.D. Investment Group, Inc. | | |
C.G.D. Investment Group, Inc.
8700 West Flagler Street Ste. 400 Miami, FL 33174 Attn: Alberto R. de Solo Email: ardesolo@caremax.net |
|
Joseph N. De Vera, Inc. | | |
Joseph N. De Vera, Inc.
8700 West Flagler Street Ste. 400 Miami, FL 33174 Attn: Joseph N. De Vera, Inc. Email: jdevera@caremax.net |
|
NKP Caremax, LLC | | |
NKP Caremax, LLC
8423 SW 137th Street Palmetto Bay, FL 33158 Attn: Nayan K. Pathak Email: nayan.pathak@nkpcapital.com |
|
Mouquin Trotter, Inc. | | |
Mouquin Trotter, Inc.
8700 West Flagler Street Ste. 400 Miami, FL 33174 Attn: Benjamin Quirk Email: ben.quirk@careoptimize.com |
|
Richard Barasch
Christopher Wolfe Dr. Peter J. Fitzgerald Dr. Linda Grais Hon. Dr. David J. Shulkin |
| |
c/o Deerfield Healthcare Technology Acquisitions Corp.
780 Third Avenue, 37th Floor New York, NY 10017 E-mail: chris.wole@dfbhealthcare.com Attn: Chris Wolfe |
|
| | | | DEERFIELD PARTNERS, L.P. | |
| | | |
By:
Deerfield Mgmt, L.P.
General Partner
|
|
| | | |
By:
J.E. Flynn Capital, LLC
General Partner
|
|
| | | |
By:
/s/ David J. Clark
Name: David J. Clark
Title: Authorized Signatory |
|
| | | | DFHTA SPONSOR LLC | |
| | | |
By:
/s/ Lawrence Atinsky
Name: Lawrence Atinsky
Title: Manager |
|
| DEERFIELD HEALTHCARE TECHNOLOGY ACQUISITIONS CORP. | | | | |
| DEERFIELD PARTNERS, L.P. | | | | |
|
By:
Name: Christopher Wolfe
Title: Chief Financial Officer |
| | | |
By: |
|
| Name of Subscriber: | | | State/Country of Formation or Domicile: | | ||||||
| By: | | |
|
| | | | | | |
| Name: | | |
|
| | | | | | |
| Title: | | |
|
| | | | | | |
|
Name in which Shares are to be registered
(if different): |
| | Date: , 2020 | | ||||||
| Subscriber’s EIN: | | | | | | | | |||
| Business Address-Street: | | | Mailing Address-Street (if different): | | ||||||
| City, State, Zip: | | | City, State, Zip: | | ||||||
| Attn: | | |
|
| | Attn: | | |
|
|
| Telephone No.: | | | Telephone No.: | | ||||||
| Facsimile No.: | | | Facsimile No.: | | ||||||
| Number of Shares subscribed for: | | | | |||||||
| Aggregate Purchase Price: $ | | | Price Per Share: $10 | |
| | | | DEERFIELD HEALTHCARE TECHNOLOGY ACQUISITIONS CORP. | | ||||||
| | | | By: | | |
|
| |||
| | | | | | | Name: | | | | |
| | | | | | | Title: | | | ||
| | | | Address for Notices: | |
| | | |
Deerfield Healthcare Technology Acquisitions Corp.
780 Third Avenue New York, New York 10017 |
| ||||||
| | | | Email: | | | chris.wolfe@dfbhealthcare.com | | |||
| | | | Attention: | | | Chris Wolfe | |
| | | |
with a copy (not to constitute notice) to:
|
| ||||||
| | | |
Email:
|
| ||||||
| | | |
Attention:
Joel Rubinstein
Bryan J. Luchs
|
|
| Name of Subscriber: | | | State/Country of Formation or Domicile: | | ||||||
| By: | | |
|
| | | | | | |
| Name: | | |
|
| | | | | | |
| Title: | | |
|
| | | | | | |
| Name in which Shares are to be registered (if different): | | | Date: , 2020 | | ||||||
| Subscriber’s EIN: | | | | | | | | |||
| Business Address-Street: | | | Mailing Address-Street (if different): | | ||||||
| City, State, Zip: | | | City, State, Zip: | | ||||||
| Attn: | | |
|
| | Attn: | | |
|
|
| Telephone No.: | | | Telephone No.: | | ||||||
| Facsimile No.: | | | Facsimile No.: | | ||||||
| Number of Shares subscribed for: | | | | | | | | |||
| Aggregate Purchase Price: $ | | | Price Per Share: $10 | | ||||||
| | | | | | | With a copy (which shall not constitute notice) to: | | |||
| | | | | | |
Katten Muchin Rosenman LLP
525 West Monroe Street Chicago, IL 60661 Facsimile No.: (312) 902-5493 Telephone No.: (312) 902-1061 Attn: Mark D. Wood Email: mark.wood@katten.com |
|
This ‘PREM14A’ Filing | Date | Other Filings | ||
---|---|---|---|---|
8/14/24 | ||||
7/30/24 | ||||
12/31/23 | ||||
1/1/23 | ||||
12/31/22 | ||||
12/15/22 | ||||
7/21/22 | ||||
2/1/22 | ||||
1/1/22 | ||||
12/31/21 | 10-K | |||
12/17/21 | 8-K | |||
12/15/21 | ||||
8/6/21 | ||||
3/31/21 | 10-Q, NT 10-Q | |||
Filed on: | 1/20/21 | |||
For Period end: | 1/19/21 | |||
1/5/21 | ||||
1/1/21 | ||||
12/31/20 | 10-K, 10-K/A | |||
12/22/20 | ||||
12/18/20 | 8-K, 8-K/A, DEFA14A | |||
12/17/20 | ||||
12/16/20 | ||||
12/15/20 | ||||
12/14/20 | ||||
12/13/20 | ||||
12/10/20 | ||||
12/4/20 | ||||
11/25/20 | ||||
11/24/20 | ||||
11/20/20 | ||||
11/13/20 | 10-Q | |||
11/12/20 | ||||
11/7/20 | ||||
11/5/20 | ||||
11/3/20 | ||||
10/29/20 | ||||
10/16/20 | ||||
10/13/20 | ||||
10/12/20 | ||||
10/7/20 | ||||
10/6/20 | ||||
10/4/20 | ||||
9/30/20 | 10-Q | |||
9/25/20 | ||||
9/24/20 | ||||
9/23/20 | ||||
9/22/20 | ||||
9/14/20 | 8-K | |||
9/12/20 | ||||
9/9/20 | ||||
9/6/20 | ||||
9/4/20 | ||||
8/31/20 | ||||
8/12/20 | ||||
7/30/20 | SC 13D | |||
7/27/20 | 8-K | |||
7/21/20 | 4, 8-K | |||
7/20/20 | 424B4 | |||
7/16/20 | 3, 8-A12B, 8-K, EFFECT | |||
7/1/20 | ||||
6/30/20 | 10-Q, DRS, S-1 | |||
6/29/20 | ||||
6/25/20 | ||||
6/20/20 | ||||
6/19/20 | ||||
5/22/20 | ||||
5/8/20 | ||||
5/1/20 | ||||
4/1/20 | ||||
3/27/20 | ||||
3/12/20 | ||||
3/11/20 | ||||
1/31/20 | ||||
1/30/20 | ||||
1/1/20 | ||||
12/31/19 | ||||
12/15/19 | ||||
10/4/19 | ||||
9/30/19 | ||||
8/14/19 | ||||
7/31/19 | ||||
7/30/19 | ||||
1/29/19 | ||||
1/1/19 | ||||
12/31/18 | ||||
12/15/18 | ||||
12/13/18 | ||||
8/1/18 | ||||
7/2/18 | ||||
1/1/18 | ||||
12/31/17 | ||||
12/15/17 | ||||
12/1/17 | ||||
9/6/17 | ||||
2/1/17 | ||||
9/26/16 | ||||
1/1/16 | ||||
12/28/15 | ||||
11/2/15 | ||||
9/22/15 | ||||
1/25/13 | ||||
5/20/09 | ||||
5/7/09 | ||||
List all Filings |