| | |
Per
Share |
| |
Total
|
| ||||||
Public offering price
|
| | | $ | 18.00 | | | | | $ | 924,300,000 | | |
Underwriting discounts and commissions(1)
|
| | | $ | 0.72 | | | | | $ | 36,972,000 | | |
Proceeds, before expenses, to us
|
| | | $ | 17.28 | | | | | $ | 887,328,000 | | |
|
J.P. Morgan
|
| |
Goldman Sachs & Co. LLC
|
| |
Morgan Stanley
|
| | Barclays | |
|
BofA Securities
|
| |
Citigroup
|
| |
Piper Sandler
|
|
|
Nomura
|
| |
RBC Capital Markets
|
|
| | |
Page
|
| |||
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| | | | 166 | | | |
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| | | | 187 | | | |
| | | | 196 | | | |
| | | | 196 | | | |
| | | | 196 | | | |
| | | | F-1 | | |
| | |
Year Ended December 31,
|
| |
Three Months
Ended March 31, |
| ||||||||||||||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |
2020
|
| |
2021(6)
|
| |
2020
|
| ||||||||||||||||||
| | |
Actual
|
| |
Pro Forma(1)
(Unaudited) |
| |
Actual
|
| |||||||||||||||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||||||||
Statement of income (loss) and comprehensive income (loss) data:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenue: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Premium revenue
|
| | | | $ 1,180,338 | | | | | | $ 272,323 | | | | | | $ 127,122 | | | | | | $ 1,376,476 | | | | | | $ 860,631 | | | | | | $ 190,737 | | |
Service revenue
|
| | | | 18,514 | | | | | | — | | | | | | — | | | | | | 18,514 | | | | | | 8,438 | | | | | | 4,820 | | |
Investment income
|
| | | | 8,468 | | | | | | 8,350 | | | | | | 3,510 | | | | | | 8,493 | | | | | | 5,489 | | | | | | 3,009 | | |
Total revenue
|
| | | | 1,207,320 | | | | | | 280,673 | | | | | | 130,632 | | | | | | 1,403,483 | | | | | | 874,558 | | | | | | 198,566 | | |
Operating costs: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Medical costs
|
| | | | 1,047,300 | | | | | | 224,387 | | | | | | 96,407 | | | | | | 1,233,725 | | | | | | 684,570 | | | | | | 130,615 | | |
Operating costs
|
| | | | 409,334 | | | | | | 180,489 | | | | | | 95,836 | | | | | | 432,718 | | | | | | 208,240 | | | | | | 74,444 | | |
Depreciation and amortization
|
| | | | 8,289 | | | | | | 1,134 | | | | | | 1,030 | | | | | | 10,623 | | | | | | 4,581 | | | | | | 787 | | |
Total operating costs
|
| | | | 1,464,923 | | | | | | 406,010 | | | | | | 193,273 | | | | | | 1,677,066 | | | | | | 897,391 | | | | | | 205,846 | | |
Operating loss
|
| | | | (248,442) | | | | | | (125,337) | | | | | | (62,641) | | | | | | (273,583) | | | | | | (22,833) | | | | | | (7,280) | | |
Interest expense
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 546 | | | | | | — | | |
Loss before income taxes
|
| | | | (257,603) | | | | | | (125,337) | | | | | | (62,641) | | | | | | (273,583) | | | | | | (23,379) | | | | | | (7,280) | | |
Income tax (benefit) expense
|
| | | | (9,161) | | | | | | — | | | | | | — | | | | | | (9,161) | | | | | | 1,166 | | | | | | — | | |
Net loss
|
| | | | (248,442) | | | | | | (125,337) | | | | | | (62,641) | | | | | | (264,422) | | | | | | (24,545) | | | | | | (7,280) | | |
Other comprehensive income (loss): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Unrealized investment holding
gains (losses) arising during the year |
| | | | 1,556 | | | | | | 1,211 | | | | | | 72 | | | | | | 1,556 | | | | | | (980) | | | | | | 890 | | |
Less reclassification adjustments for investment gains (losses) included in net loss
|
| | | | 112 | | | | | | 38 | | | | | | (17) | | | | | | 112 | | | | | | 62 | | | | | | (61) | | |
Total other comprehensive income (loss)
|
| | | | 1,444 | | | | | | 1,173 | | | | | | 89 | | | | | | 1,444 | | | | | | (1,042) | | | | | | 951 | | |
Comprehensive loss
|
| | | | (246,998) | | | | | | (124,164) | | | | | | (62,552) | | | | | | (262,978) | | | | | | (25,587) | | | | | | (6,329) | | |
Comprehensive loss attributable
to noncontrolling interests |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (617) | | | | | | — | | |
Comprehensive loss attributable
to Bright Health Group, Inc. common shareholders |
| | | | $ (246,998) | | | | | | $ (124,164) | | | | | | $ (62,552) | | | | | | $ (262,978) | | | | | | $ (26,204) | | | | | | $ (6,329) | | |
Non-GAAP Metric: | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||
Adjusted EBITDA(2)
|
| | | | $ (238,912) | | | | | | $ (121,091) | | | | | | $ (61,354) | | | | | | $ (252,558) | | | | | | $ (9,584) | | | | | | $ (3,855) | | |
| | |
Year Ended December 31,
|
| |
Three Months Ended
March 31, |
| | ||||||||||||||||||||||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |
2020
|
| |
2021(6)
|
| |
2020
|
| |
2021
|
| | |||||||||||||||||||||||
| | |
Actual
|
| |
Pro Forma
(Unaudited)(3)(4) |
| |
Actual
|
| |
Pro Forma
(Unaudited)(3)(4) |
| | ||||||||||||||||||||||||||||||||
| | |
(in thousands, except per share amounts)
|
| | | | |||||||||||||||||||||||||||||||||||||||
Per share data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Net loss per share attributable to common stockholders, basic and diluted
|
| | | | $ (1.82) | | | | | | $ (0.93) | | | | | | $ (0.47) | | | | | | $ (0.55) | | | | | | $ (0.18) | | | | | | $ (0.05) | | | | | | $ (0.05) | | | | ||
Weighted average common shares outstanding used to compute net loss per share attributable to common stockholders, basic and diluted
|
| | | | 136,193 | | | | | | 134,486 | | | | | | 131,975 | | | | | | 476,818 | | | | | | 140,175 | | | | | | 137,125 | | | | | | 557,659 | | | |
| | |
Year Ended December 31,
|
| |
Three Months Ended
March 31, |
| ||||||||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |
2021
|
| |
2020
|
| |||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||
Cash flow data: | | | | | | | | | | | | | | | | | | | | | | ||||||||||
Net cash provided by (used in): | | | | | | | | | | | | | | | | | | | | | | ||||||||||
Operating activities
|
| | | $ | (57,238) | | | | | $ | (8,208) | | | | | $ | (27,034) | | | | | $ | 343,603 | | | | | $ | 82,286 | | |
Investing activities
|
| | | | (689,742) | | | | | | (94,643) | | | | | | (6,940) | | | | | | (56,275) | | | | | | (338,359) | | |
Financing activities
|
| | | | 712,441 | | | | | | 424,060 | | | | | | 203,057 | | | | | | 200,234 | | | | | | 13 | | |
| | |
As of March 31, 2021
|
| |||||||||||||||
| | |
Actual(6)
|
| |
Pro Forma(4)
(Unaudited) |
| |
Pro Forma As
Adjusted(5) (Unaudited) |
| |||||||||
| | |
(in thousands)
|
| |||||||||||||||
Balance sheet data: | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 975,933 | | | | | $ | 975,933 | | | | | $ | 1,659,418 | | |
Total assets
|
| | | | 2,488,118 | | | | | | 2,488,118 | | | | | | 3,168,771 | | |
Total debt
|
| | | | 200,000 | | | | | | 200,000 | | | | | | — | | |
Total liabilities
|
| | | | 1,231,556 | | | | | | 1,231,556 | | | | | | 1,031,556 | | |
Total stockholders’ equity (deficit)
|
| | | | (519,807) | | | | | | 1,216,345 | | | | | | 2.096,998 | | |
| | |
Year Ended December 31,
|
| |
Three Months Ended March 31,
|
| ||||||||||||||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |
2020
|
| |
2021
|
| |
2020
|
| ||||||||||||||||||
| | |
Actual
|
| |
Pro Forma
(Unaudited) |
| |
Actual
|
| |||||||||||||||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||||||||
Net loss(6)
|
| | | $ | (248,442) | | | | | $ | (125,337) | | | | | $ | (62,641) | | | | | $ | (264,422) | | | | | $ | (24,545) | | | | | $ | (7,280) | | |
Interest expense
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 546 | | | | | | — | | |
Income tax (benefit) expense
|
| | | | (9,161) | | | | | | — | | | | | | — | | | | | | (9,161) | | | | | | 1,166 | | | | | | — | | |
Depreciation and amortization
|
| | | | 8,289 | | | | | | 1,134 | | | | | | 1,030 | | | | | | 10,623 | | | | | | 4,581 | | | | | | 787 | | |
Transaction costs(a)
|
| | | | 4,950 | | | | | | 1,248 | | | | | | — | | | | | | 4,950 | | | | | | 2,020 | | | | | | 1,695 | | |
Share-based compensation expense(b)(6)
|
| | | | 5,452 | | | | | | 1,864 | | | | | | 257 | | | | | | 5,452 | | | | | | 5,176 | | | | | | 943 | | |
Change in fair value of contingent consideration(c)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,472 | | | | | | — | | |
Adjusted EBITDA
|
| | | $ | (238,912) | | | | | $ | (121,091) | | | | | $ | (61,354) | | | | | $ | (252,558) | | | | | $ | (9,584) | | | | | $ | (3,855) | | |
| | |
Year Ended
December 31, 2020 |
| |
Three Months
Ended March 31, 2021 |
| ||||||
| | |
(in thousands, except
per share amounts) |
| |||||||||
Numerator: | | | | | | | | | |||||
Net loss attributable to common stockholders(6)
|
| | | $ | (264,422) | | | | | $ | (25,162) | | |
Denominator: | | | | | | | | | |||||
Weighted-average number of shares outstanding used to compute net loss per share attributable to common stockholders, basic and diluted
|
| | | | 136,193 | | | | | | 140,175 | | |
Pro forma adjustment to reflect the assumed conversion of preferred stock
|
| | | | 340,625 | | | | | | 417,484 | | |
Pro forma weighted-average number of shares outstanding used to compute pro forma net loss per share, basic and diluted
|
| | | | 476,818 | | | | | | 557,659 | | |
Pro forma net loss per share, basic and diluted
|
| | | $ | (0.55) | | | | | $ | (0.05) | | |
| | |
As of March 31, 2021
|
| |||||||||||||||
| | |
Actual(2)
|
| |
Pro Forma
|
| |
Pro Forma
As Adjusted |
| |||||||||
| | |
(in thousands, except share and par value)
|
| |||||||||||||||
Cash and cash equivalents
|
| | | $ | 975,933 | | | | | $ | 975,933 | | | | | $ | 1,659,418 | | |
Debt: | | | | | | | | | | | | | | | | | | | |
Total debt(1)
|
| | | | 200,000 | | | | | | 200,000 | | | | | | — | | |
Redeemable equity: | | | | | | | | | | | | | | | | | | | |
Redeemable noncontrolling interests
|
| | | | 40,217 | | | | | | 40,217 | | | | | | 40,217 | | |
Preferred stock, $0.0001 par value; 168,065,332 shares
authorized, actual, 165,664,947 shares issued and outstanding, actual, 168,065,332 shares authorized, pro forma, no shares issued and outstanding, pro forma, 100,000,000 shares authorized, pro forma as adjusted, no shares issued and outstanding, pro forma as adjusted |
| | | | 1,736,152 | | | | | | — | | | | | | — | | |
Stockholders’ equity (deficit): | | | | | | | | | | | | | | | | | | | |
Common stock, $0.0001 par value; 674,593,725 shares authorized, actual, 142,323,510 shares issued and outstanding, actual, 674,593,725 shares authorized, pro forma, 564,020,214 shares issued and outstanding, pro forma, 3,000,000,000 shares authorized, pro forma
as adjusted, 615,370,214 shares issued and outstanding, pro forma as adjusted |
| | | | 14 | | | | | | 56 | | | | | | 61 | | |
Additional paid-in capital
|
| | | | 19,946 | | | | | | 1,756,056 | | | | | | 2,636,704 | | |
Accumulated deficit
|
| | | | (541,151) | | | | | | (541,151) | | | | | | (541,151) | | |
Accumulated other comprehensive income (loss)
|
| | | | 1,384 | | | | | | 1,384 | | | | | | 1,384 | | |
Total stockholders’ equity (deficit)
|
| | | $ | (519,807) | | | | | $ | 1,216,345 | | | | | $ | 2,096,998 | | |
Total capitalization
|
| | | $ | 1,456,562 | | | | | $ | 1,456,562 | | | | | $ | 2,137,215 | | |
| | |
Bright
Health Historical |
| |
Brand New
Day As Adjusted (Note 3) |
| |
Transaction
Accounting Adjustments (Note 4) |
| |
Bright
Health Pro Forma Combined |
| ||||||||||||
Revenue
|
| | | | $ 1,207,320 | | | | | | $ 196,163 | | | | | | | | | | | | $1,403,483 | | |
Operating costs: | | | | | | | | | | | | | | | | | | | | | | | | | |
Medical costs
|
| | | | 1,047,300 | | | | | | 186,425 | | | | | | | | | | | | 1,233,725 | | |
Operating costs
|
| | | | 409,334 | | | | | | 23,416 | | | | | | (32)(a) | | | | | | 432,718 | | |
Depreciation and amortization
|
| | | | 8,289 | | | | | | 629 | | | | | | 1,705(b) | | | | | | 10,623 | | |
Total operating costs
|
| | | | 1,464,923 | | | | | | 210,470 | | | | | | | | | | | | 1,677,066 | | |
Operating loss
|
| | | | (257,603) | | | | | | (14,307) | | | | | | | | | | | | (273,583) | | |
Interest expense, net
|
| | | | — | | | | | | (565) | | | | | | 565(c) | | | | | | — | | |
Loss before income taxes
|
| | | | (257,603) | | | | | | (14,872) | | | | | | | | | | | | (273,583) | | |
Income tax (benefit) expense
|
| | | | (9,161) | | | | | | — | | | | |
|
(d)
|
| | | | | (9,161) | | |
Net loss
|
| | | | $ (248,442) | | | | | | $ (14,872) | | | | | | | | | | | | $ (264,422) | | |
Basic and diluted loss per share and pro forma loss per share attributable to common shareholders
|
| | | | $ (1.82) | | | | | | | | | | | | | | | | | | $ (0.55)(e) | | |
Weighted-average number of shares outstanding and
pro forma weighted-average number of shares used to compute net loss per share attributable to common stockholders, basic and diluted |
| | | | 136,193 | | | | | | | | | | | | | | | | | | 476,818 | | |
| | |
Brand New Day
Four Months Ended Historical April 30, 2020 |
| |
Adjustments
to Conform Presentation |
| |
Brand New
Day Four Months Ended April 30, 2020 As Adjusted |
| |||||||||
(in thousands) | | | | | | | | | | | | | | | | | | | |
Total revenue*
|
| | | | $ 196,163 | | | | | | $ — | | | | | | $ 196,163 | | |
Operating costs: | | | | | | | | | | | | | | | | | | | |
Medical costs*
|
| | | | — | | | | | | 186,425(i) | | | | | | 186,425 | | |
Operating costs*
|
| | | | — | | | | | | 23,416 (ii) | | | | | | 23,416 | | |
Healthcare services
|
| | | | 186,425 | | | | | | (186,425)(i) | | | | | | — | | |
Marketing, general and administrative expenses
|
| | | | 16,740 | | | | | | (16,740)(ii) | | | | | | — | | |
Salaries and benefits
|
| | | | 6,676 | | | | | | (6,676)(ii) | | | | | | — | | |
Depreciation and amortization*
|
| | | | 629 | | | | | | — | | | | | | 629 | | |
Total operating costs
|
| | | | 210,470 | | | | | | — | | | | | | 210,470 | | |
Operating income (loss)
|
| | | | (14,307) | | | | | | — | | | | | | (14,307) | | |
Interest expense, net
|
| | | | (565) | | | | | | — | | | | | | (565) | | |
Loss before income taxes*
|
| | | | (14,872) | | | | | | — | | | | | | (14,872) | | |
Income tax (benefit) expense
|
| | | | — | | | | | | — | | | | | | — | | |
Net loss
|
| | | | $ (14,872) | | | | | | $ — | | | | | | $ (14,872) | | |
| | |
Estimated
Fair Value |
| |
Estimated
Useful Life (in years) |
| |
Depreciation and
Amortization Expense for the 4 Months Ended April 30, 2020 |
| |||||||||
(in thousands) | | | | | | | | | | | | | | | | | | | |
Property, equipment and capitalized software
|
| | | $ | 4,375 | | | | | | 3.7 | | | | | $ | 394 | | |
Member relationships
|
| | | | 46,900 | | | | | | 12 | | | | | | 1,304 | | |
Trade name
|
| | | | 25,600 | | | | | | 15 | | | | | | 569 | | |
Provider network
|
| | | | 2,000 | | | | | | 10 | | | | | | 67 | | |
New depreciation and amortization expense
|
| | | | | | | | | | | | | | | | 2,334 | | |
Eliminate historical Brand New Day depreciation and amortization expense
|
| | | | | | | | | | | | | | | | (629) | | |
Pro forma depreciation and amortization adjustment
|
| | | | | | | | | | | | | | | $ | 1,705 | | |
| | |
For the
Year Ended December 31, 2020 |
| |||
(in thousands, except per share amounts) | | | | | | | |
Numerator: | | | | | | | |
Pro forma net loss attributable to common stockholders
|
| | | | $ (264,422) | | |
Denominator: | | | | | | | |
Weighted-average number of shares outstanding used to compute net loss per share attributable to common stockholders, basic and diluted
|
| | | | 136,193 | | |
Pro forma adjustment to reflect the assumed conversion of preferred stock
|
| | | | 340,625 | | |
Pro forma weighted-average number of shares outstanding used to compute pro forma net loss per share, basic and diluted
|
| | | | 476,818 | | |
Pro forma net loss per share, basic and diluted
|
| | | | $ (0.55) | | |
|
Initial public offering price per share
|
| |
|
| | | $ | 18.00 | | | |||
|
Net tangible book deficit per share as of March 31, 2021 before giving effect to this
offering |
| | | $ | (7.14) | | | | | | | | |
|
Increase in net tangible book value per share attributable to conversion of outstanding preferred stock
|
| | | | 8.42 | | | | |||||
|
Increase in net tangible book value per share attributable to new investors purchasing shares in this offering
|
| | | | 1.32 | | | | |||||
|
Net tangible book value per share as adjusted to give effect to this offering and the automatic conversion of all of our outstanding preferred stock into 421,696,704 shares of common stock
|
| | | | | | | | | | 2.60 | | |
|
Dilution per share to new investors in this offering
|
| | | | | | | | | $ | 15.40 | | |
| | |
Shares Purchased
|
| |
Total Consideration
|
| |
Average
Price Share |
| |||||||||||||||||||||
| | |
Number
|
| |
Percent
|
| |
Amount
|
| |
Percent
|
| ||||||||||||||||||
| | |
(in millions)
|
| | | | | | | |
(in millions)
|
| | | | |||||||||||||||
Existing stockholders(1)
|
| | | | 564.0 | | | | | | 92% | | | | | $ | 1,743.3(2) | | | | | | 65% | | | | | $ | 3.09 | | |
New investors
|
| | | | 51.4 | | | | | | 8% | | | | | | 924.3 | | | | | | 35% | | | | | | 18.00 | | |
Total
|
| | | | 615.4 | | | | | | 100% | | | | | | 2,667.6 | | | | | | 100% | | | | | | 4.33 | | |
|
Shares of common stock issuable upon conversion of the preferred stock
|
| | | | 421,696,704 | | |
|
Common shares issued and outstanding
|
| | | | 142,323,510 | | |
|
Total common shares purchased by existing stockholders
|
| | | | 564,020,214 | | |
| | |
Year Ended December 31,
|
| |
Three Months Ended
March 31, |
| ||||||||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |
2021
|
| |
2020
|
| |||||||||||||||
| | |
($ in thousands)
|
| |||||||||||||||||||||||||||
Bright HealthCare Consumers Served | | | | | | | | | | | | | | | | | | | | | | ||||||||||
Commercial(1)
|
| | | | 145,459 | | | | | | 54,782 | | | | | | 22,114 | | | | | | 481,958 | | | | | | 152,263 | | |
Medicare Advantage
|
| | | | 61,663 | | | | | | 4,146 | | | | | | 2,262 | | | | | | 67,567 | | | | | | 5,784 | | |
NeueHealth Patients | | | | | | | | | | | | | | | | | | | | | | ||||||||||
Value-based Care Patients
|
| | | | 21,126 | | | | | | — | | | | | | — | | | | | | 30,890 | | | | | | 20,294 | | |
Net loss(2)
|
| | | | $ (248,442) | | | | | | $ (125,337) | | | | | | $ (62,641) | | | | | | $ (24,545) | | | | | | $ (7,280) | | |
Adjusted EBITDA(3)
|
| | | | $ (238,912) | | | | | | $ (121,091) | | | | | | $ (61,354) | | | | | | $ (9,584) | | | | | | $ (3,855) | | |
| | |
Year Ended December 31,
|
| |
Three Months Ended March 31,
|
| ||||||||||||||||||||||||
(in thousands)
|
| |
2020
|
| |
2019
|
| |
2018
|
| |
2021
|
| |
2020
|
| |||||||||||||||
Net loss(a)
|
| | | | $ (248,442) | | | | | | $ (125,337) | | | | | | $ (62,641) | | | | | | $ (24,545) | | | | | | $ (7,280) | | |
Interest expense
|
| | | | — | | | | | | — | | | | | | — | | | | | | 546 | | | | | | — | | |
Income tax (benefit) expense
|
| | | | (9,161) | | | | | | — | | | | | | — | | | | | | 1,166 | | | | | | — | | |
Depreciation and Amortization
|
| | | | 8,289 | | | | | | 1,134 | | | | | | 1,030 | | | | | | 4,581 | | | | | | 787 | | |
Transaction Costs(b)
|
| | | | 4,950 | | | | | | 1,248 | | | | | | — | | | | | | 2,020 | | | | | | 1,695 | | |
Share-based Compensation expense(a)(c)
|
| | | | 5,452 | | | | | | 1,864 | | | | | | 257 | | | | | | 5,176 | | | | | | 943 | | |
Change in fair value of contingent consideration(d)
|
| | | | — | | | | | | — | | | | | | — | | | | | | 1,472 | | | | | | — | | |
Adjusted EBITDA
|
| | | | $ (238,912) | | | | | | $ (121,091) | | | | | | $ (61,354) | | | | | | $ (9,584) | | | | | | $ (3,855) | | |
| | |
Three Months Ended March 31,
|
| |||||||||
Consolidated statements of income (loss) and operating data:
|
| |
2021(3)
|
| |
2020
|
| ||||||
| | |
(in thousands, except percentages)
|
| |||||||||
Revenue: | | | | | | | | | | | | | |
Premium revenue
|
| | | $ | 860,631 | | | | | $ | 190,737 | | |
Service revenue
|
| | | | 8,438 | | | | | | 4,820 | | |
Investment income
|
| | | | 5,489 | | | | | | 3,009 | | |
Total revenue
|
| | | | 874,558 | | | | | | 198,566 | | |
Operating costs: | | | | | | | | | | | | | |
Medical costs
|
| | | | 684,570 | | | | | | 130,615 | | |
Operating costs
|
| | | | 208,240 | | | | | | 74,444 | | |
Depreciation and amortization
|
| | | | 4,581 | | | | | | 787 | | |
Total operating costs
|
| | | | 897,391 | | | | | | 205,846 | | |
Operating Loss
|
| | | | (22,833) | | | | | | (7,280) | | |
Interest Expense
|
| | | | 546 | | | | | | — | | |
Loss before income taxes
|
| | | | (23,379) | | | | | | (7,280) | | |
Income tax (benefit) expense
|
| | | | 1,166 | | | | | | — | | |
Net loss
|
| | | | (24,545) | | | | | | (7,280) | | |
Net earnings attributable to noncontrolling interest
|
| | | | (617) | | | | | | — | | |
Net loss attributable to Bright Health Group, Inc. common
shareholders |
| | | $ | (25,162) | | | | | $ | (7,280) | | |
Adjusted EBITDA
|
| | | $ | (9,584) | | | | | $ | (3,855) | | |
Medical Cost Ratio (MCR)(1)
|
| | | | 79.5% | | | | | | 68.5% | | |
Operating Cost Ratio(2)
|
| | | | 23.8% | | | | | | 37.5% | | |
| | |
Three Months Ended March 31,
|
| |||||||||
Statements of income (loss) and operating data:
|
| |
2021(2)
|
| |
2020
|
| ||||||
| | |
(in thousands, except percentages)
|
| |||||||||
Bright HealthCare: | | | | | | | | | | | | | |
Commercial premium revenue(1)
|
| | | $ | 621,056 | | | | | $ | 175,562 | | |
Medicare Advantage premium revenue
|
| | | | 220,869 | | | | | | 13,171 | | |
Investment income
|
| | | | 1,246 | | | | | | 3,009 | | |
Total revenue
|
| | | | 843,171 | | | | | | 191,742 | | |
Operating costs: | | | | | | | | | | | | | |
Medical costs
|
| | | | 675,056 | | | | | | 130,615 | | |
Operating costs
|
| | | | 189,973 | | | | | | 66,975 | | |
Depreciation and amortization
|
| | | | 2,357 | | | | | | 262 | | |
Total operating costs
|
| | | | 867,386 | | | | | | 197,852 | | |
Operating loss
|
| | | $ | (24,215) | | | | | $ | (6,110) | | |
Medical Cost Ratio (MCR)
|
| | | | 80.2% | | | | | | 69.2% | | |
| | |
Three Months Ended March 31,
|
| |||||||||
Statements of income (loss) and operating data:
|
| |
2021(1)
|
| |
2020
|
| ||||||
| | |
(in thousands)
|
| |||||||||
NeueHealth | | | | | | | | | | | | | |
Premium revenue
|
| | | $ | 28,674 | | | | | $ | 2,004 | | |
Service revenue
|
| | | | 15,622 | | | | | | 7,527 | | |
Investment income
|
| | | | 4,243 | | | | | | — | | |
Total revenue
|
| | | | 48,539 | | | | | | 9,531 | | |
Operating costs: | | | | | | | | | | | | | |
Medical costs
|
| | | | 19,482 | | | | | | — | | |
Operating costs
|
| | | | 25,451 | | | | | | 10,176 | | |
Depreciation and amortization
|
| | | | 2,224 | | | | | | 525 | | |
Total operating costs
|
| | | | 47,157 | | | | | | 10,701 | | |
Operating income (loss)
|
| | | $ | 1,382 | | | | | $ | (1,170) | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
Consolidated statements of income (loss) and operating data:
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
| | |
(in thousands, except percentages)
|
| |||||||||||||||
Revenue: | | | | | | | | | | | | | | | | | | | |
Premium revenue
|
| | | | $ 1,180,338 | | | | | | $ 272,323 | | | | | | $ 127,122 | | |
Service revenue
|
| | | | 18,514 | | | | | | — | | | | | | — | | |
Investment income
|
| | | | 8,468 | | | | | | 8,350 | | | | | | 3,510 | | |
Total revenue
|
| | | | 1,207,320 | | | | | | 280,673 | | | | | | 130,632 | | |
Operating costs: | | | | | | | | | | | | | | | | | | | |
Medical costs
|
| | | | 1,047,300 | | | | | | 224,387 | | | | | | 96,407 | | |
Operating costs
|
| | | | 409,334 | | | | | | 180,489 | | | | | | 95,836 | | |
Depreciation and amortization
|
| | | | 8,289 | | | | | | 1,134 | | | | | | 1,030 | | |
Total operating costs
|
| | | | 1,464,923 | | | | | | 406,010 | | | | | | 193,273 | | |
Loss before income taxes
|
| | | | (257,603) | | | | | | (125,337) | | | | | | (62,641) | | |
Income tax (benefit) expense
|
| | | | (9,161) | | | | | | — | | | | | | — | | |
Net loss
|
| | | | $ (248,442) | | | | | | $ (125,337) | | | | | | $ (62,641) | | |
Adjusted EBITDA
|
| | | | $ (238,912) | | | | | | $ (121,091) | | | | | | $ (61,354) | | |
Medical Cost Ratio (MCR)(1)
|
| | | | 88.7% | | | | | | 82.4% | | | | | | 75.8% | | |
Operating Cost Ratio(2)
|
| | | | 33.9% | | | | | | 64.3% | | | | | | 73.4% | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
Statements of income (loss) and operating data:
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
| | |
(in thousands, except percentages)
|
| |||||||||||||||
Bright HealthCare: | | | | | | | | | | | | | | | | | | | |
Commercial premium revenue(1)
|
| | | | $ 692,433 | | | | | | $ 236,290 | | | | | | $ 111,412 | | |
Medicare Advantage premium revenue
|
| | | | 480,112 | | | | | | 36,033 | | | | | | 15,710 | | |
Investment income
|
| | | | 8,468 | | | | | | 8,350 | | | | | | 3,510 | | |
Total revenue
|
| | | | 1,181,013 | | | | | | 280,673 | | | | | | 130,632 | | |
Operating costs: | | | | | | | | | | | | | | | | | | | |
Medical costs
|
| | | | 1,047,300 | | | | | | 224,387 | | | | | | 96,407 | | |
Operating costs
|
| | | | 376,215 | | | | | | 180,489 | | | | | | 95,836 | | |
Depreciation and amortization
|
| | | | 6,394 | | | | | | 1,134 | | | | | | 1,030 | | |
Total operating costs
|
| | | | 1,429,909 | | | | | | 406,010 | | | | | | 193,273 | | |
Loss before income taxes
|
| | | | $ (248,896) | | | | | | $ (125,337) | | | | | | $ (62,641) | | |
Medical Cost Ratio (MCR)
|
| | | | 89.3% | | | | | | 82.4% | | | | | | 75.8% | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
Statements of income (loss) and operating data:
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
| | |
(in thousands)
|
| |||||||||||||||
NeueHealth | | | | | | | | | | | | | | | | | | | |
Service revenue
|
| | | | $ 29,354 | | | | | | $ — | | | | | | $ — | | |
Premium revenue
|
| | | | 7,793 | | | | | | — | | | | | | — | | |
Total revenue
|
| | | | $ 37,147 | | | | | | $ — | | | | | | $ — | | |
Operating costs: | | | | | | | | | | | | | | | | | | | |
Operating costs
|
| | | | 43,959 | | | | | | — | | | | | | — | | |
Depreciation and amortization
|
| | | | 1,895 | | | | | | — | | | | | | — | | |
Total operating costs
|
| | | | 45,854 | | | | | | — | | | | | | — | | |
Loss before income taxes
|
| | | | $ (8,707) | | | | | | $ — | | | | | | $ — | | |
| | |
Three Months Ended March 31,
|
| | | | |||||||||
| | |
2021
|
| |
2020
|
| | ||||||||
| | |
(in thousands)
|
| | |||||||||||
Net cash provided by operating activities
|
| | | $ | 343,603 | | | | | $ | 82,286 | | | | ||
Net cash used in investing activities
|
| | | | (56,275) | | | | | | (338,359) | | | | ||
Net cash provided by financing activities
|
| | | | 200,234 | | | | | | 13 | | | | ||
Net increase (decrease) in cash and cash equivalents
|
| | | | 487,562 | | | | | | (256,060) | | | | ||
Cash and cash equivalents at beginning of period
|
| | | | 488,371 | | | | | | 522,910 | | | | ||
Cash and cash equivalents at end of period
|
| | | $ | 975,933 | | | | | $ | 266,850 | | | |
| | |
Year Ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
| | |
(in thousands)
|
| |||||||||||||||
Net cash used in operating activities
|
| | | | $ (57,238) | | | | | | $ (8,208) | | | | | | $ (27,034) | | |
Net cash used in investing activities
|
| | | | (689,742) | | | | | | (94,643) | | | | | | (6,940) | | |
Net cash provided by financing activities
|
| | | | 712,441 | | | | | | 424,060 | | | | | | 203,057 | | |
Net increase in cash and cash equivalents
|
| | | | (34,539) | | | | | | 321,209 | | | | | | 169,083 | | |
Cash and cash equivalents at beginning of year
|
| | | | 522,910 | | | | | | 201,701 | | | | | | 32,618 | | |
Cash and cash equivalents at end of year
|
| | | | $ 488,371 | | | | | | $ 522,910 | | | | | | $ 201,701 | | |
Completion Factors
(Decrease) Increase in Factors |
| |
Increase (Decrease) in
Medical Costs Payable |
| |||
| | |
(in thousands)
|
| |||
(3.00)%
|
| | | | $ 25,826 | | |
(2.00)%
|
| | | | 17,042 | | |
(1.00)%
|
| | | | 8,435 | | |
1.00%
|
| | | | (8,268) | | |
2.00%
|
| | | | (16,374) | | |
3.00%
|
| | | | (24,322) | | |
Name
|
| |
Age
|
| |
Position
|
|
G. Mike Mikan | | |
50
|
| | Chief Executive Officer, President and Director | |
Catherine R. Smith | | |
57
|
| | Chief Financial and Administrative Officer | |
Sam K. Srivastava | | |
53
|
| | Chief Executive Officer, NeueHealth | |
Tomás Valdivia | | |
59
|
| | Chief Health and Equity Officer | |
Keith Nelsen | | |
57
|
| | General Counsel and Corporate Secretary | |
Simeon Schindelman | | |
58
|
| | Chief Executive Officer, Bright HealthCare | |
Robert J. Sheehy | | |
63
|
| | Chairman of the Board | |
Kedrick D. Adkins Jr. | | |
68
|
| | Director | |
Naomi Allen | | |
47
|
| | Director | |
Jeffrey Folick | | |
73
|
| | Director | |
Linda Gooden | | |
68
|
| | Director | |
Jeffery R. Immelt | | |
65
|
| | Director | |
Manuel Kadre | | |
55
|
| | Director | |
Stephen Kraus | | |
44
|
| | Director | |
Mohamad Makhzoumi | | |
41
|
| | Director | |
Adair Newhall | | |
42
|
| | Director | |
Company Name
|
| |
Business Segment
|
|
Adobe Inc. | | | Software | |
Allscripts Healthcare Solutions, Inc. | | | HC Technology | |
American Renal Associates Holdings | | | HC Providers & Services | |
AMN Healthcare Services Inc. | | | HC Providers & Services | |
Athenahealth Inc.* | | | HC Technology | |
Acadia Healthcare | | | HC Providers & Services | |
Cerner Corporation | | | HC Technology | |
DaVita Inc. | | | HC Providers & Services | |
Encompass Health Corporation | | | HC Providers & Services | |
Envision Healthcare Corporation* | | | HC Providers & Services | |
Evolent Health, Inc. | | | HC Providers & Services | |
Gartner, Inc. | | | IT Services | |
Intuit Inc. | | | Software | |
LifePoint Health* | | | HC Providers & Services | |
Magellan Health Inc. | | | HC Providers & Services | |
Mednax, Inc. | | | HC Providers & Services | |
Molina Healthcare Inc. | | | HC Providers & Services | |
Owens & Minor, Inc. | | | HC Providers & Services | |
Paychex, Inc. | | | IT Services | |
VMWare, Inc. | | | Software | |
Workday, Inc. | | | Software | |
Compensation Element
|
| |
Description
|
| |
Objectives
|
|
Base Salary
|
| | Fixed compensation | | | Provide a competitive, fixed level of cash compensation to attract and retain talented and skilled executives | |
Annual Cash Bonus
|
| | Discretionary annual cash bonus determined after considering financial and individual performance | | | Retain and motivate executives to achieve or exceed financial goals and company objectives | |
Stock Options
|
| | Equity-linked compensation that is subject to vesting based on continued employment | | | The value of options is directly related to the appreciation in value delivered to our stockholders over time, aligning the interests of our executives with those of our stockholders | |
Employee Benefits and Perquisites
|
| | Participation in all broad-based employee health and welfare programs and retirement plans | | | Aid in retention of key executives in a highly competitive market for talent by providing an overall competitive benefits package | |
Name
|
| |
Fiscal
Year End 2019 Base Salary ($) |
| |
Fiscal
Year End 2020 Base Salary ($)(1) |
| |
Percentage
Increase (%) |
| |||||||||
G. Mike Mikan
|
| | | | 300,000 | | | | | | 600,000 | | | | | | 100 | | |
Cathy Smith
|
| | | | — | | | | | | 450,000 | | | | | | — | | |
Robert Sheehy
|
| | | | 300,000 | | | | | | 600,000 | | | | | | 100 | | |
Keith Nelsen
|
| | | | — | | | | | | 400,000 | | | | | | — | | |
Simeon Schindelman
|
| | | | 300,000 | | | | | | 400,000 | | | | | | 33 | | |
Sam Srivastava
|
| | | | 300,000 | | | | | | 400,000 | | | | | | 33 | | |
Name
|
| |
2021 Base
Salary ($) |
| |||
G. Mike Mikan
|
| | | | 1,300,000 | | |
Cathy Smith
|
| | | | 650,000 | | |
Keith Nelsen
|
| | | | 550,000 | | |
Simeon Schindelman
|
| | | | 575,000 | | |
Sam Srivastava
|
| | | | 575,000 | | |
Name
|
| |
2020 Base
Salary ($) |
| |
Target Bonus
(%) |
| |
Target Bonus
Amount ($) |
| |
Actual Bonus
Paid ($)(1) |
| ||||||||||||
G. Mike Mikan
|
| | | | 600,000 | | | | | | 75 | | | | | | 450,000 | | | | | | 585,000 | | |
Cathy Smith
|
| | | | 450,000 | | | | | | 75 | | | | | | 337,500 | | | | | | 454,375 | | |
Robert Sheehy
|
| | | | 600,000 | | | | | | 75 | | | | | | 450,000 | | | | | | 540,000 | | |
Keith Nelsen
|
| | | | 400,000 | | | | | | 60 | | | | | | 240,000 | | | | | | 193,600 | | |
Simeon Schindelman
|
| | | | 400,000 | | | | | | 60 | | | | | | 240,000 | | | | | | 327,000 | | |
Sam Srivastava
|
| | | | 400,000 | | | | | | 60 | | | | | | 240,000 | | | | | | 327,000 | | |
Name
|
| |
2021 Target
Bonus (%) |
| |||
G. Mike Mikan
|
| | | | 130 | | |
Cathy Smith
|
| | | | 90 | | |
Keith Nelsen
|
| | | | 70 | | |
Simeon Schindelman
|
| | | | 75 | | |
Sam Srivastava
|
| | | | 75 | | |
Name
|
| |
Grant Date
|
| |
Number of
Options Granted |
| |
Exercise Price
per Share ($) |
| |||||||||
G. Mike Mikan
|
| | | | 2/19/2020 | | | | | | 5,235,000 | | | | | | 1.77 | | |
| | | | | 11/19/2020 | | | | | | 1,650,000 | | | | | | 2.30 | | |
Cathy Smith
|
| | | | 2/19/2020 | | | | | | 600,000 | | | | | | 1.77 | | |
| | | | | 11/19/2020 | | | | | | 450,000 | | | | | | 2.30 | | |
Robert Sheehy
|
| | | | 2/19/2020 | | | | | | 4,008,000 | | | | | | 1.77 | | |
| | | | | 11/19/2020 | | | | | | 750,000 | | | | | | 2.30 | | |
Keith Nelsen
|
| | | | 5/28/2020 | | | | | | 1,800,000 | | | | | | 1.77 | | |
| | | | | 11/19/2020 | | | | | | 225,000 | | | | | | 2.30 | | |
Simeon Schindelman
|
| | | | 2/19/2020 | | | | | | 75,534 | | | | | | 1.77 | | |
| | | | | 5/28/2020 | | | | | | 450,000 | | | | | | 1.77 | | |
| | | | | 11/19/2020 | | | | | | 300,000 | | | | | | 2.30 | | |
Sam Srivastava
|
| | | | 2/19/2020 | | | | | | 68,667 | | | | | | 1.77 | | |
| | | | | 5/28/2020 | | | | | | 450,000 | | | | | | 1.77 | | |
| | | | | 11/19/2020 | | | | | | 300,000 | | | | | | 2.30 | | |
Name
|
| |
Number of
Options Granted |
| |||
G. Mike Mikan
|
| | | | 7,812,288 | | |
Cathy Smith
|
| | | | 1,200,000 | | |
Robert Sheehy
|
| | | | — | | |
Keith Nelsen
|
| | | | 675,000 | | |
Simeon Schindelman
|
| | | | 1,050,000 | | |
Sam Srivastava
|
| | | | 1,200,000 | | |
Vesting Tranche (25% of PSUs)
|
| |
Appreciation
Required From Public Offering Price |
| |
Price Per
Share Goal |
| ||||||
First Vesting Tranche
|
| | | | 50% | | | | | $ | 27.00 | | |
Second Vesting Tranche
|
| | | | 100% | | | | | $ | 36.00 | | |
Third Vesting Tranche
|
| | | | 150% | | | | | $ | 45.00 | | |
Fourth Vesting Tranche
|
| | | | 200% | | | | | $ | 54.00 | | |
Name
|
| |
Title
|
| |
Total
PSU Grant |
|
G. Mike Mikan | | | Chief Executive Officer | | | 7,350,000 | |
Cathy Smith | | | Chief Financial and Administrative Officer | | | 1,050,000 | |
Keith Nelsen | | | General Counsel | | | 1,050,000 | |
Simeon Schindelman | | |
Chief Executive Officer – Bright HealthCare
|
| | 1,050,000 | |
Sam Srivastava | | | Chief Executive Officer – NeueHealth | | | 1,050,000 | |
Other Executive Leadership Team Members | | | N/A | | | 3,150,000 | |
Name and Principal Position
|
| |
Year
|
| |
Salary
($)(1) |
| |
Bonus
($)(2) |
| |
Option Awards
($)(3) |
| |
All Other
Compensation ($)(4) |
| |
Total
($) |
| ||||||||||||||||||
G. Mike Mikan
Chief Executive Officer 5/1/20 – 12/ 31/20 |
| | | | 2020 | | | | | | 600,000 | | | | | | 585,000 | | | | | | 4,141,805 | | | | | | 162,018 | | | | | | 5,488,823 | | |
Cathy Smith
Chief Financial Officer |
| | | | 2020 | | | | | | 445,096 | | | | | | 454,375 | | | | | | 672,660 | | | | | | 10,125 | | | | | | 1,582,256 | | |
Robert Sheehy
Chief Executive Officer 1/1/20 – 4/30/20 |
| | | | 2020 | | | | | | 600,000 | | | | | | 540,000 | | | | | | 2,783,174 | | | | | | 17,925 | | | | | | 3,941,099 | | |
Keith Nelsen
General Counsel |
| | | | 2020 | | | | | | 265,384 | | | | | | 193,600 | | | | | | 1,195,830 | | | | | | 5,000 | | | | | | 1,659,814 | | |
Simeon Schindelman
Chief Executive Officer – Bright HealthCare |
| | | | 2020 | | | | | | 400,000 | | | | | | 327,000 | | | | | | 525,350 | | | | | | 13,031 | | | | | | 1,265,381 | | |
Sam Srivastava
Chief Executive Officer – NeueHealth |
| | | | 2020 | | | | | | 400,000 | | | | | | 327,000 | | | | | | 521,617 | | | | | | 12,946 | | | | | | 1,261,563 | | |
Name
|
| |
Award
Type |
| |
Grant
Date(1) |
| |
All
Other Stock Awards: Number of Shares of Stock or Units (#) |
| |
All Other
Option Awards: Number of Securities Underlying Options (#) |
| |
Exercise
or Base Price of Option Awards ($/ share) |
| |
Grant
Date Fair Value of Stock and Option Awards ($)(2) |
| |||||||||||||||
G. Mike Mikan
|
| | | | Options | | | | | | 2/19/2020 | | | | | | | | | 5,235,000 | | | | | | 1.77 | | | | | | 2,894,955 | | |
| | | | | Options | | | | | | 11/19/2020 | | | | | | | | | 1,650,000 | | | | | | 2.30 | | | | | | 1,246,850 | | |
Cathy Smith
|
| | | | Options | | | | | | 2/19/2020 | | | | | | | | | 600,000 | | | | | | 1.77 | | | | | | 331,800 | | |
| | | | | Options | | | | | | 11/19/2020 | | | | | | | | | 450,000 | | | | | | 2.30 | | | | | | 340,860 | | |
Robert Sheehy
|
| | | | Options | | | | | | 2/19/2020 | | | | | | | | | 4,008,000 | | | | | | 1.77 | | | | | | 2,216,424 | | |
| | | | | Options | | | | | | 11/19/2020 | | | | | | | | | 750,000 | | | | | | 2.30 | | | | | | 566,750 | | |
Keith Nelsen
|
| | | | Options | | | | | | 5/28/2020 | | | | | | | | | 1,800,000 | | | | | | 1.77 | | | | | | 1,025,400 | | |
| | | | | Options | | | | | | 11/19/2020 | | | | | | | | | 225,000 | | | | | | 2.30 | | | | | | 170,430 | | |
Simeon Schindelman
|
| | | | Options | | | | | | 2/19/2020 | | | | | | | | | 75,534 | | | | | | 1.77 | | | | | | 41,070 | | |
| | | | | Options | | | | | | 5/28/2020 | | | | | | | | | 450,000 | | | | | | 1.77 | | | | | | 257,040 | | |
| | | | | Options | | | | | | 11/19/2020 | | | | | | | | | 300,000 | | | | | | 2.30 | | | | | | 227,240 | | |
Sam Srivastava
|
| | | | Options | | | | | | 2/19/2020 | | | | | | | | | 68,667 | | | | | | 1.77 | | | | | | 37,337 | | |
| | | | | Options | | | | | | 5/28/2020 | | | | | | | | | 450,000 | | | | | | 1.77 | | | | | | 257,040 | | |
| | | | | Options | | | | | | 11/19/2020 | | | | | | | | | 300,000 | | | | | | 2.30 | | | | | | 227,240 | | |
| | | | | | | | | | | | | | |
Option Awards
|
| ||||||||||||||||||||||||
Name
|
| |
Grant
Date |
| |
Vesting
Commencement Date(1) |
| |
Number of
Securities Underlying Unexercised Options Exercisable (#)(2) |
| |
Number of
Securities Underlying Unexercised Options Unexercisable (#)(3) |
| |
Equity
Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#) |
| |
Option
Exercise Price ($) |
| |
Option
Expiration Date(4) |
| ||||||||||||||||||
G. Mike Mikan
|
| | | | 1/23/2019 | | | | | | 1/15/2019 | | | | | | 5,412,186 | | | | | | 5,882,814 | | | | | | | | | 1.04 | | | | | | 1/22/2029 | | |
| | | | | 2/19/2020 | | | | | | 2/19/2020 | | | | | | | | | | | | 5,235,000 | | | | | | | | | 1.77 | | | | | | 2/18/2030 | | |
| | | | | 11/19/2020 | | | | | | 11/19/2020 | | | | | | | | | | | | 1,650,000 | | | | | | | | | 2.30 | | | | | | 11/18/2030 | | |
Cathy Smith
|
| | | | 11/4/2019 | | | | | | 1/6/2020 | | | | | | | | | | | | 2,550,000 | | | | | | | | | 1.77 | | | | | | 11/3/2029 | | |
| | | | | 2/19/2020 | | | | | | 2/19/2020 | | | | | | | | | | | | 600,000 | | | | | | | | | 1.77 | | | | | | 2/18/2030 | | |
| | | | | 11/19/2020 | | | | | | 12/18/2020 | | | | | | | | | | | | 450,000 | | | | | | | | | 2.30 | | | | | | 11/18/2030 | | |
Robert Sheehy
|
| | | | 2/19/2020 | | | | | | 2/19/2020 | | | | | | | | | | | | 4,008,000 | | | | | | | | | 1.77 | | | | | | 2/18/2030 | | |
| | | | | 11/19/2020 | | | | | | 11/19/2020 | | | | | | | | | | | | 750,000 | | | | | | | | | 2.30 | | | | | | 11/18/2030 | | |
Keith Nelsen
|
| | | | 5/28/2020 | | | | | | 5/4/2020 | | | | | | | | | | | | 1,800,000 | | | | | | | | | 1.77 | | | | | | 5/27/2030 | | |
| | | | | 11/19/2020 | | | | | | 12/18/2020 | | | | | | | | | | | | 225,000 | | | | | | | | | 2.30 | | | | | | 11/18/2030 | | |
Simeon Schindelman
|
| | | | 11/4/2019 | | | | | | 9/16/2019 | | | | | | 459,237 | | | | | | 1,134,375 | | | | | | | | | 1.77 | | | | | | 11/3/2029 | | |
| | | 2/19/2020 | | | | | | 9/16/2019 | | | | | | 23,604 | | | | | | 51,930 | | | | | | | | | 1.77 | | | | | | 2/18/2030 | | | ||
| | | 5/28/2020 | | | | | | 5/28/2020 | | | | | | | | | | | | 450,000 | | | | | | | | | 1.77 | | | | | | 5/27/2030 | | | ||
| | | 11/19/2020 | | | | | | 12/18/2020 | | | | | | | | | | | | 300,000 | | | | | | | | | 2.30 | | | | | | 11/18/2030 | | | ||
Sam Srivastava
|
| | | | 11/4/2019 | | | | | | 9/16/2019 | | | | | | 468,750 | | | | | | 1,031,250 | | | | | | | | | 1.77 | | | | | | 11/3/2029 | | |
| | | | | 2/19/2020 | | | | | | 9/16/2019 | | | | | | 21,456 | | | | | | 47,211 | | | | | | | | | 1.77 | | | | | | 2/18/2030 | | |
| | | | | 5/28/2020 | | | | | | 5/28/2020 | | | | | | | | | | | | 450,000 | | | | | | | | | 1.77 | | | | | | 5/27/2030 | | |
| | | | | 11/19/2020 | | | | | | 12/18/2020 | | | | | | | | | | | | 300,000 | | | | | | | | | 2.30 | | | | | | 11/18/2030 | | |
| | |
Option Awards
|
| |||||||||
Name
|
| |
Number of Shares
Acquired on Exercise (#) |
| |
Value Realized on
Exercise ($)(1) |
| ||||||
Simeon Schindelman
|
| | | | 56,388 | | | | | | 29,698 | | |
Benefit
|
| |
Termination
Without Cause other than in connection with Change in Control ($) |
| |
Death ($)
|
| |
Termination
Without Cause in connection with Change in Control ($) |
| |||||||||
Cash Severance Payment (Salary and Bonus)
|
| | | | 2,100,000(1) | | | | | | | | | | | | 2,100,000(1) | | |
Option Value
|
| | | | 4,821,595(2) | | | | | | 8,331,380(3) | | | | | | 10,169,446(4) | | |
Total
|
| | | | 6,921,595 | | | | | | 8,331,380 | | | | | | 12,269,446 | | |
Benefit
|
| |
Termination
Without Cause ($) |
| |||
Cash Severance Payment (Salary)
|
| | | | 300,000(1) | | |
Total | | | | | 300,000 | | |
Benefit
|
| |
Termination
Without Cause ($) |
| |||
Cash Severance Payment (Salary)
|
| | | | 200,000(1) | | |
Total | | | | | 200,000 | | |
Benefit
|
| |
Termination
Without Cause ($) |
| |||
Cash Severance Payment (Salary and Bonus)
|
| | | | 421,875(1) | | |
Total | | | | | 421,875 | | |
Benefit
|
| |
Termination
Without Cause ($) |
| |||
Cash Severance Payment (Salary)
|
| | | | 400,000(1) | | |
Total | | | | | 400,000 | | |
Employee Level
|
| |
Employee Grade
|
| |
Weeks of Severance Pay
|
|
Executive Leadership Team | | |
23 – 24
|
| | 18 months | |
Senior Vice President | | |
20 – 22
|
| | 12 months | |
Vice President | | |
19
|
| | 6 months | |
Director and Senior Director | | |
17 – 18
|
| | Four weeks plus one week for each completed year of service, with a minimum of 12 weeks and a maximum of 26 weeks | |
All other employees | | |
10 – 16
|
| | Four weeks plus one week for each completed year of service, with a maximum of 26 weeks | |
Employee Level
|
| |
Employee Grade
|
| |
Weeks of Severance Pay
|
|
Executive Leadership Team (ELT) | | |
23 – 24
|
| | 78 weeks of base pay plus an amount equal to 1.5 times the participant’s target bonus, paid over the Severance Period | |
Senior Vice President (SVP) | | |
20 – 22
|
| | 52 weeks of base pay plus an amount equal to the participant’s target bonus, paid over the Severance Period | |
Vice President | | |
19
|
| | 26 weeks of base pay plus an amount equal to 0.5 times the participant’s target bonus amount, paid over the Severance Period | |
Director and Senior Director | | |
17 – 18
|
| | Four weeks plus one week for each completed year of service, with a minimum of 12 weeks and a maximum of 26 weeks | |
All other employees | | |
10 – 16
|
| | Four weeks plus one week for each completed year of service, with a maximum of 26 weeks | |
Employee Level
|
| |
Employee Grade
|
| |
Benefit Subsidy Period
|
|
Executive Leadership Team | | |
23 – 24
|
| | 18 months | |
Senior Vice President | | |
20 – 22
|
| | 12 months | |
Vice President | | |
19
|
| | 6 months | |
Director and Senior Director | | |
17 – 18
|
| | Each calendar month during the Severance Period, with a minimum of 3 months and maximum of 6 months | |
All other employees | | |
10 – 16
|
| | Each calendar month during the Severance Period, with a maximum of 6 months. | |
Employee Grade
|
| |
Non-competition,
non-solicitation and non-disparagement period |
|
23 – 24 | | | 18 months | |
19 – 22 | | | 12 months | |
10 – 18 | | | For the Severance Period (defined above) | |
Name
|
| |
Fees Earned or
Paid in Cash ($)(1) |
| |
Option
Awards ($)(2)(3)(4) |
| |
Total ($)
|
| |||||||||
Kedrick D. Adkins Jr.
|
| | | | 17,250 | | | | | | 298,620 | | | | | | 315,870 | | |
Naomi Allen
|
| | | | 17,250 | | | | | | 298,620 | | | | | | 315,870 | | |
Jeffrey R. Immelt
|
| | | | — | | | | | | 308,448 | | | | | | 308,448 | | |
Manuel Kadre
|
| | | | 2,300 | | | | | | 408,060 | | | | | | 410,360 | | |
Name
|
| |
Shares of
Series C Preferred Stock(1) |
| |
Shares of
Series D Preferred Stock(2) |
| |
Shares of
Series E Preferred Stock(3) |
| |
Aggregate
Purchase Price |
| ||||||||||||
| | | | | | | | | | | | | | | | | | | | |
(in thousands)
|
| |||
New Enterprise Associates and affiliated funds(4)
|
| | | | 8,471,262 | | | | | | 28,572,947 | | | | | | 6,970,570 | | | | | | $ 636,623 | | |
Bessemer Venture Partners and affiliated funds(5)
|
| | | | 3,258,177 | | | | | | 3,993,424 | | | | | | 2,602,800 | | | | | | 138,071 | | |
Greenspring and affiliated funds(6)
|
| | | | 2,606,540 | | | | | | 1,663,924 | | | | | | 1,714,200 | | | | | | 80,000 | | |
Jeffrey Folick(7)
|
| | | | 32,079 | | | | | | 13,311 | | | | | | — | | | | | | 446 | | |
Jeffery R. Immelt(8)
|
| | | | — | | | | | | 13,311 | | | | | | 14,693 | | | | | | 500 | | |
| | | | | | | | | | | | | | |
Shares Beneficially
Owned After The Offering |
| |||||||||||||||||||||
| | |
Shares
Beneficially Owned Prior To The Offering |
| |
Shares
Beneficially Owned Prior to The Offering |
| |
If Underwriters’
Option To Purchase Additional Shares Is Not Exercised |
| |
If Underwriters’
Option To Purchase Additional Shares Is Exercised In Full |
| ||||||||||||||||||||||||
Name Of Beneficial Owner
|
| |
Shares
|
| |
Percentage
|
| |
Shares
|
| |
Percentage
|
| |
Shares
|
| |
Percentage
|
| ||||||||||||||||||
5% Stockholders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
New Enterprise Associates and affiliated funds(1)
|
| | | | 216,267,684 | | | | | | 37.7% | | | | | | 216,267,684 | | | | | | 34.6% | | | | | | 216,267,684 | | | | | | 34.3% | | |
Bessemer Venture Partners and affiliated funds(2)
|
| | | | 79,937,724 | | | | | | 13.9% | | | | | | 79,937,724 | | | | | | 12.8% | | | | | | 79,937,724 | | | | | | 12.7% | | |
Greenspring and affiliated funds(3)
|
| | | | 43,040,376 | | | | | | 7.5% | | | | | | 43,040,376 | | | | | | 6.9% | | | | | | 43,040,376 | | | | | | 6.8% | | |
Directors and Named Executive Officers(4):
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
G. Mike Mikan(5)
|
| | | | 10,263,435 | | | | | | 1.8% | | | | | | 10,263,435 | | | | | | 1.6% | | | | | | 10,263,435 | | | | | | 1.6% | | |
Catherine R. Smith(6)
|
| | | | 1,168,749 | | | | | | * | | | | | | 1,168,749 | | | | | | * | | | | | | 1,168,749 | | | | | | * | | |
Sam Srivastava(7)
|
| | | | 840,843 | | | | | | * | | | | | | 840,843 | | | | | | * | | | | | | 840,843 | | | | | | * | | |
Keith Nelsen(8)
|
| | | | 525,000 | | | | | | * | | | | | | 525,000 | | | | | | * | | | | | | 525,000 | | | | | | * | | |
Simeon Schindelman(9)
|
| | | | 912,741 | | | | | | * | | | | | | 912,741 | | | | | | * | | | | | | 912,741 | | | | | | * | | |
Robert J. Sheehy(10)
|
| | | | 21,474,735 | | | | | | 3.7% | | | | | | 21,474,735 | | | | | | 3.4% | | | | | | 21,474,735 | | | | | | 3.4% | | |
Kedrick D. Adkins Jr.(11)
|
| | | | 191,250 | | | | | | * | | | | | | 191,250 | | | | | | * | | | | | | 191,250 | | | | | | * | | |
Naomi Allen(12)
|
| | | | 191,250 | | | | | | * | | | | | | 191,250 | | | | | | * | | | | | | 191,250 | | | | | | * | | |
Jeffrey Folick(13)
|
| | | | 1,599,810 | | | | | | * | | | | | | 1,599,810 | | | | | | * | | | | | | 1,599,810 | | | | | | * | | |
Linda Gooden
|
| | | | — | | | | | | | | | | | | — | | | | | | | | | | | | — | | | | | | | | |
Jeffery R. Immelt(14)
|
| | | | 230,262 | | | | | | * | | | | | | 230,262 | | | | | | * | | | | | | 230,262 | | | | | | * | | |
Manuel Kadre
|
| | | | — | | | | | | | | | | | | — | | | | | | | | | | | | — | | | | | | | | |
Steve Kraus(2)
|
| | | | — | | | | | | | | | | | | — | | | | | | | | | | | | — | | | | | | | | |
Mohamad Makhzoumi(1)(15)
|
| | | | 216,209,181 | | | | | | 37.7% | | | | | | 216,209,181 | | | | | | 34.6% | | | | | | 216,209,181 | | | | | | 34.3% | | |
Adair Newhall(16)
|
| | | | 224,628 | | | | | | * | | | | | | 224,628 | | | | | | * | | | | | | 224,628 | | | | | | * | | |
All directors and executive officers
as a group (16 persons) |
| | | | 236,748,123 | | | | | | 40.4% | | | | | | 236,748,123 | | | | | | 37.1% | | | | | | 236,748,123 | | | | | | 36.8% | | |
Earliest Date Available for Sale in the Public Market
|
| |
Number of Shares of Common Stock
|
|
On or after September 7, 2021, provided that the closing price of our common stock on the NYSE is at least 33% greater than the initial public offering price per share set forth on the cover page of this prospectus for the periods described in the section titled “Underwriting (Conflicts of Interest).” | | | Up to 56.4 million shares based on the number of shares of common stock outstanding as of March 31, 2021, assuming the conversion of our preferred stock. | |
180 days after the date of this prospectus, provided that if such release were to occur during or within nine trading days of the start of a regularly scheduled trading black-out period, the above referenced expiration period will instead be the tenth trading day immediately preceding the commencement of such trading black-out period. | | | All remaining shares held by our stockholders not previously eligible for sale, subject to volume limitations applicable to “affiliates” under Rule 144 as described below. | |
Name
|
| |
Number of
Shares |
| |||
J.P. Morgan Securities LLC
|
| | | | 11,297,000 | | |
Goldman Sachs & Co. LLC
|
| | | | 11,297,000 | | |
Morgan Stanley & Co. LLC
|
| | | | 9,756,500 | | |
Barclays Capital Inc.
|
| | | | 9,756,500 | | |
BofA Securities, Inc.
|
| | | | 4,621,500 | | |
Citigroup Global Markets Inc.
|
| | | | 2,054,000 | | |
Piper Sandler & Co.
|
| | | | 1,027,000 | | |
Nomura Securities International, Inc.
|
| | | | 770,250 | | |
RBC Capital Markets, LLC
|
| | | | 770,250 | | |
Total
|
| | | | 51,350,000 | | |
| | |
Without
option to purchase additional shares exercise |
| |
With full
option to purchase additional shares exercise |
| ||||||
Per Share
|
| | | $ | 0.72 | | | | | $ | 0.72 | | |
Total
|
| | | $ | 36,972,000 | | | | | $ | 41,408,640 | | |
| Unaudited Condensed Consolidated Financial Statements of Bright Health Group, Inc. | | | | | | | |
| | | | | F-2 | | | |
| | | | | F-3 | | | |
| | | | | F-4 | | | |
| | | | | F-5 | | | |
| | | | | F-6 | | | |
| | | | | F-7 | | | |
| Audited Consolidated Financial Statements of Bright Health Group, Inc. | | | | | | | |
| | | | | F-25 | | | |
| | | | | F-29 | | | |
| | | | | F-30 | | | |
| | | | | F-31 | | | |
| | | | | F-32 | | | |
| | | | | F-33 | | | |
| | | | | F-34 | | | |
| | | | | F-35 | | | |
| Condensed Unaudited Financial Statements of Universal Care, Inc. | | | | | | | |
| | | | | F-65 | | | |
| | | | | F-66 | | | |
| | | | | F-67 | | | |
| | | | | F-68 | | | |
| | | | | F-69 | | | |
| Audited Financial Statements of Universal Care, Inc. | | | | | | | |
| | | | | F-81 | | | |
| | | | | F-82 | | | |
| | | | | F-83 | | | |
| | | | | F-84 | | | |
| | | | | F-85 | | | |
| | | | | F-86 | | |
| | |
March 31
2021 (As Restated, See Note 14) |
| |
December 31
2020 |
| ||||||
Assets | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 975,933 | | | | | $ | 488,371 | | |
Short-term investments
|
| | | | 274,578 | | | | | | 499,928 | | |
Accounts receivable, net of allowance of $3,750 and $2,602, respectively
|
| | | | 85,486 | | | | | | 60,522 | | |
Prepaids and other current assets
|
| | | | 164,321 | | | | | | 130,986 | | |
Total current assets
|
| | | | 1,500,318 | | | | | | 1,179,807 | | |
Other assets: | | | | | | | | | | | | | |
Long-term investments
|
| | | | 448,903 | | | | | | 175,176 | | |
Property, equipment and capitalized software, net
|
| | | | 15,784 | | | | | | 12,264 | | |
Goodwill
|
| | | | 328,983 | | | | | | 263,035 | | |
Intangible assets, net
|
| | | | 166,726 | | | | | | 152,211 | | |
Other non-current assets
|
| | | | 27,404 | | | | | | 28,309 | | |
Total other assets
|
| | | | 987,800 | | | | | | 630,995 | | |
Total assets
|
| | | $ | 2,488,118 | | | | | $ | 1,810,802 | | |
Liabilities, Redeemable Noncontrolling Interest, Redeemable Preferred Stock and Shareholders’ Deficit
|
| | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Medical costs payable
|
| | | $ | 488,859 | | | | | $ | 249,777 | | |
Accounts payable
|
| | | | 85,146 | | | | | | 57,252 | | |
Unearned revenue
|
| | | | 39,311 | | | | | | 34,628 | | |
Risk adjustment payable
|
| | | | 326,310 | | | | | | 187,777 | | |
Short-term borrowings
|
| | | | 200,000 | | | | | | — | | |
Other current liabilities
|
| | | | 56,707 | | | | | | 35,847 | | |
Total current liabilities
|
| | | | 1,196,333 | | | | | | 565,281 | | |
Other liabilities
|
| | | | 35,223 | | | | | | 28,578 | | |
Total liabilities
|
| | | | 1,231,556 | | | | | | 593,859 | | |
Commitments and contingencies (Note 10) | | | | | | | | | | | | | |
Redeemable noncontrolling interests
|
| | | | 40,217 | | | | | | 39,600 | | |
Redeemable preferred stock, $0.0001 par value; 168,065,332 and 166,307,087 shares
authorized in 2021 and 2020, respectively; 165,664,947 and 164,244,893 shares issued and outstanding in 2021 and 2020, respectively |
| | | | 1,736,152 | | | | | | 1,681,015 | | |
Shareholders’ deficit: | | | | | | | | | | | | | |
Common stock, $0.0001 par value; 674,593,725 and 658,993,725 shares authorized in
2021 and 2020, respectively; 142,323,510 and 137,662,698 shares issued and outstanding in 2021 and 2020, respectively |
| | | | 14 | | | | | | 14 | | |
Additional paid-in capital
|
| | | | 19,946 | | | | | | 9,877 | | |
Accumulated deficit
|
| | | | (541,151) | | | | | | (515,989) | | |
Accumulated other comprehensive income
|
| | | | 1,384 | | | | | | 2,426 | | |
Total shareholders’ deficit
|
| | | | (519,807) | | | | | | (503,672) | | |
Total liabilities, redeemable noncontrolling interests, redeemable preferred stock and shareholders’ deficit
|
| | | $ | 2,488,118 | | | | | $ | 1,810,802 | | |
| | |
Three Months Ended March 31,
|
| |||||||||
| | |
2021
(As Restated, See Note 14) |
| |
2020
|
| ||||||
Revenue: | | | | | | | | | | | | | |
Premium revenue
|
| | | | $ 860,631 | | | | | | $ 190,737 | | |
Service revenue
|
| | | | 8,438 | | | | | | 4,820 | | |
Investment income
|
| | | | 5,489 | | | | | | 3,009 | | |
Total revenue
|
| | | | 874,558 | | | | | | 198,566 | | |
Operating costs: | | | | | | | | | | | | | |
Medical costs
|
| | | | 684,570 | | | | | | 130,615 | | |
Operating costs
|
| | | | 208,240 | | | | | | 74,444 | | |
Depreciation and amortization
|
| | | | 4,581 | | | | | | 787 | | |
Total operating costs
|
| | | | 897,391 | | | | | | 205,846 | | |
Operating loss
|
| | | | (22,833) | | | | | | (7,280) | | |
Interest expense
|
| | | | 546 | | | | | | — | | |
Loss before income taxes
|
| | | | (23,379) | | | | | | (7,280) | | |
Income tax (benefit) expense
|
| | | | 1,166 | | | | | | — | | |
Net loss
|
| | | | (24,545) | | | | | | (7,280) | | |
Net earnings attributable to noncontrolling interests
|
| | | | (617) | | | | | | — | | |
Net loss attributable to Bright Health Group, Inc. common shareholders
|
| | | | $ (25,162) | | | | | | $ (7,280) | | |
Basic and diluted loss per share attributable to Bright Health Group, Inc. common shareholders
|
| | | | $ (0.18) | | | | | | $ (0.05) | | |
Basic and diluted weighted-average common shares outstanding
|
| | | | 140,175 | | | | | | 137,125 | | |
| | |
Three Months Ended March 31,
|
| |||||||||
| | |
2021
(As Restated, See Note 14) |
| |
2020
|
| ||||||
Net loss
|
| | | | $ (24,545) | | | | | | $ (7,280) | | |
Other comprehensive income (loss): | | | | | | | | | | | | | |
Unrealized investment holding gains (losses) arising during the year, net of tax of $0 and $0, respectively
|
| | | | (980) | | | | | | 890 | | |
Less: reclassification adjustments for investment gains (losses), net of
tax of $0 and $0, respectively |
| | | | 62 | | | | | | (61) | | |
Other comprehensive income (loss)
|
| | | | (1,042) | | | | | | 951 | | |
Comprehensive loss
|
| | | | (25,587) | | | | | | (6,329) | | |
Comprehensive income attributable to noncontrolling interests
|
| | | | (617) | | | | | | — | | |
Comprehensive loss attributable to Bright Health Group, Inc. common shareholders
|
| | | | $ (26,204) | | | | | | $ (6,329) | | |
| | |
Redeemable Preferred Stock
|
| | |
Common Stock
|
| |
Additional
Paid-In Capital |
| |
Retained
Earnings (Deficit) |
| |
Accumulated
Other Comprehensive Income (Loss) |
| |
Total
|
| ||||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| | |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||
Balance at January 1, 2021
|
| | | | 164,245 | | | | | | 1,681,015 | | | | | | | 137,663 | | | | | | $ 14 | | | | | | $ 9,877 | | | | | | $ (515,989) | | | | | | $ 2,426 | | | | | | $ (503,672) | | |
Net loss(1)
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | (25,162) | | | | | | — | | | | | | (25,162) | | |
Issuance of preferred stock(1)
|
| | | | 1,420 | | | | | | 55,137 | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Issuance of common stock
|
| | | | — | | | | | | — | | | | | | | 4,661 | | | | | | — | | | | | | 4,893 | | | | | | — | | | | | | — | | | | | | 4,893 | | |
Share-based compensation(1)
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 5,176 | | | | | | — | | | | | | — | | | | | | 5,176 | | |
Other comprehensive loss
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,042) | | | | | | (1,042) | | |
Balance at March 31, 2021 (As Restated)
|
| | | | 165,665 | | | | | | $ 1,736,152 | | | | | | | 142,324 | | | | | | $ 14 | | | | | | $ 19,946 | | | | | | $ (541,151) | | | | | | $ 1,384 | | | | | | $ (519,807) | | |
Balance at January 1, 2020
|
| | | | 119,222 | | | | | | 871,990 | | | | | | | 135,509 | | | | | | 14 | | | | | | 3,184 | | | | | | (267,547) | | | | | | 982 | | | | | | (263,367) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | (7,280) | | | | | | — | | | | | | (7,280) | | |
Issuance of common stock
|
| | | | — | | | | | | — | | | | | | | 183 | | | | | | — | | | | | | 13 | | | | | | — | | | | | | — | | | | | | 13 | | |
Share-based compensation
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 943 | | | | | | — | | | | | | — | | | | | | 943 | | |
Other comprehensive income
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 951 | | | | | | 951 | | |
Balance at March 31, 2020
|
| | | | 119,222 | | | | | | $ 871,990 | | | | | | | 135,692 | | | | | | $ 14 | | | | | | $ 4,140 | | | | | | $ (274,827) | | | | | | $ 1,933 | | | | | | $ (268,740) | | |
| | |
Three Months Ended March 31,
|
| |||||||||
| | |
2021
(As Restated, See Note 14) |
| |
2020
|
| ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net loss
|
| | | | $ (25,162) | | | | | | $ (7,280) | | |
Adjustments to reconcile net loss to net cash provided by operating activities:
|
| | | | | | | | | | | | |
Depreciation and amortization
|
| | | | 4,581 | | | | | | 787 | | |
Share-based compensation
|
| | | | 5,176 | | | | | | 943 | | |
Deferred income taxes
|
| | | | 1,166 | | | | | | — | | |
Other, net
|
| | | | 2,694 | | | | | | 146 | | |
Changes in assets and liabilities, net of acquired assets and liabilities:
|
| | | | | | | | | | | | |
Accounts receivable
|
| | | | (23,188) | | | | | | (6,805) | | |
Other assets
|
| | | | (15,707) | | | | | | (2,552) | | |
Medical cost payable
|
| | | | 225,814 | | | | | | 53,822 | | |
Risk adjustment payable
|
| | | | 137,215 | | | | | | 48,597 | | |
Accounts payable and other liabilities
|
| | | | 30,096 | | | | | | (6,246) | | |
Unearned revenue
|
| | | | 918 | | | | | | 874 | | |
Net cash provided by operating activities
|
| | | | 343,603 | | | | | | 82,286 | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Purchases of investments
|
| | | | (298,957) | | | | | | (387,665) | | |
Proceeds from sales, paydown, and maturities of investments
|
| | | | 265,521 | | | | | | 49,314 | | |
Purchases of property and equipment
|
| | | | (4,215) | | | | | | (8) | | |
Business acquisition, net of cash acquired
|
| | | | (18,624) | | | | | | — | | |
Net cash used in investing activities
|
| | | | (56,275) | | | | | | (338,359) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Proceeds from short-term borrowings
|
| | | | 200,000 | | | | | | — | | |
Proceeds from issuance of common stock
|
| | | | 4,893 | | | | | | 13 | | |
Payments for debt issuance costs
|
| | | | (3,391) | | | | | | — | | |
Payments for IPO offering costs
|
| | | | (1,268) | | | | | | — | | |
Net cash provided by financing activities
|
| | | | 200,234 | | | | | | 13 | | |
Net increase (decrease) in cash and cash equivalents
|
| | | | 487,562 | | | | | | (256,060) | | |
Cash and cash equivalents – beginning of year
|
| | | | 488,371 | | | | | | 522,910 | | |
Cash and cash equivalents – end of period
|
| | | | $ 975,933 | | | | | | $ 266,850 | | |
Supplemental disclosures of cash flow information: | | | | | | | | | | | | | |
Changes in unrealized gain (loss) on available-for-sale securities in OCI
|
| | | | $ (1,042) | | | | | | $ 951 | | |
Cash paid for interest
|
| | | | 244 | | | | | | — | | |
Supplemental schedule of noncash activities: | | | | | | | | | | | | | |
Redeemable preferred stock issued for acquisitions
|
| | | | $ 32,982 | | | | | | $ — | | |
| | |
2021
|
| |
2020
|
| ||||||
Compensation and fringe benefits
|
| | | | $ 57,026 | | | | | | $ 25,554 | | |
Professional fees
|
| | | | 39,463 | | | | | | 17,212 | | |
Marketing and selling expense
|
| | | | 50,205 | | | | | | 8,640 | | |
Other operating expenses
|
| | | | 61,546 | | | | | | 23,038 | | |
Total operating costs
|
| | | | $ 208,240 | | | | | | $ 74,444 | | |
|
Accounts receivable
|
| | | $ | 5,674 | | |
|
Prepaids and other current assets
|
| | | | 18,692 | | |
|
Property and equipment
|
| | | | 353 | | |
|
Intangible assets
|
| | | | 110,000 | | |
|
Total Assets
|
| | | | 134,719 | | |
|
Medical costs payable
|
| | | | 71,709 | | |
|
Accounts payable
|
| | | | 2,371 | | |
|
Other current liabilities
|
| | | | 7,426 | | |
|
Other liabilities
|
| | | | 17 | | |
|
Total liabilities
|
| | | | 81,523 | | |
|
Net identified assets acquired
|
| | | | 53,196 | | |
|
Goodwill
|
| | | | 199,438 | | |
|
Total purchase consideration
|
| | | $ | 252,634 | | |
| | |
Pro Forma Consolidated Statements of Income (Loss)
(Unaudited) |
| |||||||||||||||||||||
| | |
Three Months Ended March 31,
|
| |
Years Ended December 31,
|
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
2020
|
| |
2019
|
| ||||||||||||
Revenue
|
| | | | $ 1,003,428 | | | | | | $ 330,438 | | | | | | $ 1,766,527 | | | | | | $ 769,722 | | |
Net loss
|
| | | | (13,531) | | | | | | (6,387) | | | | | | (221,023) | | | | | | (132,636) | | |
| | |
THNM
|
| |
Zipnosis
|
| ||||||
Accounts receivable
|
| | | | $ 714 | | | | | | $ 1,062 | | |
Short-term investments
|
| | | | 4,677 | | | | | | $ — | | |
Prepaids and other current assets
|
| | | | 8,337 | | | | | | 141 | | |
Property and equipment
|
| | | | — | | | | | | 232 | | |
Intangible assets
|
| | | | 7,300 | | | | | | 8,970 | | |
Long-term investments
|
| | | | 13,081 | | | | | | — | | |
Other non-current assets
|
| | | | 1,324 | | | | | | 766 | | |
Total Assets
|
| | | | 35,433 | | | | | | 11,171 | | |
Medical costs payable
|
| | | | 13,268 | | | | | | — | | |
Accounts payable
|
| | | | 14,663 | | | | | | 136 | | |
Unearned revenue
|
| | | | 3,645 | | | | | | 120 | | |
Other current liabilities
|
| | | | 2,682 | | | | | | 665 | | |
Other liabilities
|
| | | | 2,499 | | | | | | 2,730 | | |
Total liabilities
|
| | | | 36,757 | | | | | | 3,651 | | |
Net identified assets acquired
|
| | | | (1,324) | | | | | | 7,520 | | |
Goodwill
|
| | | | 4,739 | | | | | | 62,827 | | |
Total purchase consideration
|
| | | | $ 3,415 | | | | | | $ 70,347 | | |
| | |
Pro Forma Consolidated
Statements of Income (Loss) (Unaudited) |
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Revenue
|
| | | | $ 922,457 | | | | | | $ 233,210 | | |
Net loss
|
| | | | (27,133) | | | | | | (8,330) | | |
| | |
Amount Recognized as
of Acquisition Date (as previously reported) |
| |
Measurement
Period Adjustments |
| |
Amounts Recognized as
of Acquisition Date (as adjusted) |
| |||||||||
Accounts receivable
|
| | | | $ 74,128 | | | | | | $ — | | | | | | $ 74,128 | | |
Prepaids and other current assets
|
| | | | 30,583 | | | | | | — | | | | | | 30,583 | | |
Property and equipment
|
| | | | 4,375 | | | | | | — | | | | | | 4,375 | | |
Intangible assets
|
| | | | 72,600 | | | | | | 1,900 | | | | | | 74,500 | | |
Other non-current assets
|
| | | | 2,906 | | | | | | — | | | | | | 2,906 | | |
Total Assets
|
| | | | 184,592 | | | | | | 1,900 | | | | | | 186,492 | | |
Medical costs payable
|
| | | | 119,408 | | | | | | — | | | | | | 119,408 | | |
Other current liabilities
|
| | | | 51,744 | | | | | | 174 | | | | | | 51,918 | | |
Other liabilities
|
| | | | 1,236 | | | | | | 108 | | | | | | 1,344 | | |
Total liabilities
|
| | | | 172,388 | | | | | | 282 | | | | | | 172,670 | | |
Net identified assets acquired
|
| | | | 12,204 | | | | | | 1,618 | | | | | | 13,822 | | |
Goodwill
|
| | | | 197,886 | | | | | | (1,618) | | | | | | 196,268 | | |
Total purchase consideration
|
| | | | $ 210,090 | | | | | | $ — | | | | | | $ 210,090 | | |
| | |
March 31, 2021
|
| |||||||||||||||||||||
| | |
Amortized
Cost |
| |
Gross
Unrealized Gains |
| |
Gross
Unrealized Losses |
| |
Carrying
Value |
| ||||||||||||
Cash equivalents
|
| | | | $ 233,427 | | | | | | $ — | | | | | | $ — | | | | | | $ 233,427 | | |
Available for sale: | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government and agency obligations
|
| | | | 459,870 | | | | | | 1,165 | | | | | | (193) | | | | | | 460,842 | | |
Corporate obligations
|
| | | | 219,839 | | | | | | 877 | | | | | | (90) | | | | | | 220,626 | | |
State and municipal obligations
|
| | | | 19,213 | | | | | | 86 | | | | | | — | | | | | | 19,299 | | |
Commercial paper
|
| | | | 4,996 | | | | | | 1 | | | | | | — | | | | | | 4,997 | | |
Certificates of deposit
|
| | | | 5,700 | | | | | | 1 | | | | | | — | | | | | | 5,701 | | |
Mortgage-backed securities
|
| | | | 3,035 | | | | | | 131 | | | | | | | | | | | | 3,166 | | |
Other
|
| | | | 1,100 | | | | | | — | | | | | | — | | | | | | 1,100 | | |
Total available-for-sale securities
|
| | | | 713,753 | | | | | | 2,261 | | | | | | (283) | | | | | | 715,731 | | |
Held to maturity: | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government and agency obligations
|
| | | | 7,220 | | | | | | — | | | | | | — | | | | | | 7,220 | | |
Certificates of deposit
|
| | | | 1,119 | | | | | | — | | | | | | — | | | | | | 1,119 | | |
Total held-to-maturity securities
|
| | | | 8,339 | | | | | | — | | | | | | — | | | | | | 8,339 | | |
Total investments
|
| | | | $ 955,519 | | | | | | $ 2,261 | | | | | | $ (283) | | | | | | $ 957,497 | | |
| | |
December 31, 2020
|
| |||||||||||||||||||||
| | |
Amortized
Cost |
| |
Gross
Unrealized Gains |
| |
Gross
Unrealized Losses |
| |
Carrying
Value |
| ||||||||||||
Cash equivalents
|
| | | | $ 153,743 | | | | | | $ — | | | | | | $ (3) | | | | | | $ 153,740 | | |
Available for sale: | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government and agency obligations
|
| | | | 291,834 | | | | | | 1,246 | | | | | | (1) | | | | | | 293,079 | | |
Corporate obligations
|
| | | | 280,557 | | | | | | 1,104 | | | | | | (30) | | | | | | 281,631 | | |
State and municipal obligations
|
| | | | 18,459 | | | | | | 107 | | | | | | — | | | | | | 18,566 | | |
Commercial paper
|
| | | | 14,990 | | | | | | 1 | | | | | | — | | | | | | 14,991 | | |
Certificates of deposit
|
| | | | 53,504 | | | | | | 2 | | | | | | (1) | | | | | | 53,505 | | |
Other
|
| | | | 5,534 | | | | | | 2 | | | | | | — | | | | | | 5,536 | | |
Total available-for-sale securities
|
| | | | 664,878 | | | | | | 2,462 | | | | | | (32) | | | | | | 667,308 | | |
Held to maturity: | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government and agency obligations
|
| | | | 6,677 | | | | | | — | | | | | | — | | | | | | 6,677 | | |
Certificates of deposit
|
| | | | 1,119 | | | | | | — | | | | | | — | | | | | | 1,119 | | |
Total held-to-maturity securities
|
| | | | 7,796 | | | | | | — | | | | | | — | | | | | | 7,796 | | |
Total investments
|
| | | | $ 826,417 | | | | | | $ 2,462 | | | | | | $ (35) | | | | | | $ 828,844 | | |
| | |
March 31, 2021
|
| |||||||||||||||||||||||||||||||||
| | |
Less Than 12 Months
|
| |
12 Months or Greater
|
| |
Total
|
| |||||||||||||||||||||||||||
Description of Investments
|
| |
Fair
Value |
| |
Unrealized
Losses |
| |
Fair
Value |
| |
Unrealized
Losses |
| |
Fair
Value |
| |
Unrealized
Losses |
| ||||||||||||||||||
U.S. government and agency obligations
|
| | | | $ 204,999 | | | | | | $ (193) | | | | | | $ — | | | | | | $ — | | | | | | $ 204,999 | | | | | | $ (193) | | |
Mortgage-backed securities
|
| | | | 21 | | | | | | — | | | | | | | | | | | | | | | | | | 21 | | | | | | | | |
Corporate obligations
|
| | | | 89,185 | | | | | | (90) | | | | | | — | | | | | | — | | | | | | 89,185 | | | | | | (90) | | |
Certificates of deposit
|
| | | | 700 | | | | | | — | | | | | | — | | | | | | — | | | | | | 700 | | | | | | — | | |
Total bonds
|
| | | | $ 294,905 | | | | | | $ (283) | | | | | | $ — | | | | | | $ — | | | | | | $ 294,905 | | | | | | $ (283) | | |
| | |
December 31, 2020
|
| |||||||||||||||||||||||||||||||||
| | |
Less Than 12 Months
|
| |
12 Months or Greater
|
| |
Total
|
| |||||||||||||||||||||||||||
Description of Investments
|
| |
Fair
Value |
| |
Unrealized
Losses |
| |
Fair
Value |
| |
Unrealized
Losses |
| |
Fair
Value |
| |
Unrealized
Losses |
| ||||||||||||||||||
Cash equivalents
|
| | | | $ 25,007 | | | | | | $ (3) | | | | | | $ — | | | | | | $ — | | | | | | $ 25,007 | | | | | | $ (3) | | |
U.S. government and agency obligations
|
| | | | 2,507 | | | | | | (1) | | | | | | — | | | | | | — | | | | | | 12,507 | | | | | | (1) | | |
Corporate obligations
|
| | | | 121,006 | | | | | | (30) | | | | | | — | | | | | | — | | | | | | 121,006 | | | | | | (30) | | |
Commercial paper
|
| | | | 999 | | | | | | — | | | | | | — | | | | | | — | | | | | | 999 | | | | | | — | | |
Certificates of deposit
|
| | | | 14,003 | | | | | | (1) | | | | | | — | | | | | | — | | | | | | 14,003 | | | | | | (1) | | |
Total bonds
|
| | | | $ 173,522 | | | | | | $ (35) | | | | | | $ — | | | | | | $ — | | | | | | $ 173,522 | | | | | | $ (35) | | |
| | |
Amortized
Cost |
| |
Fair
Value |
| ||||||
Due in one year or less
|
| | | | $ 272,016 | | | | | | $ 272,809 | | |
Due after one year through five years
|
| | | | 441,248 | | | | | | 442,409 | | |
Due after five years through 10 years
|
| | | | 489 | | | | | | 513 | | |
Due after 10 years
|
| | | | — | | | | | | — | | |
Total debt securities
|
| | | | $ 713,753 | | | | | | $ 715,731 | | |
| | |
March 31, 2021
|
| |||||||||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash equivalents
|
| | | | $ 221,018 | | | | | | $ 625 | | | | | | $ — | | | | | | $ 221,643 | | |
Available for sale:
|
| | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government and agency obligations
|
| | | | 320,911 | | | | | | 139,931 | | | | | | — | | | | | | 460,842 | | |
Corporate obligations
|
| | | | 2,384 | | | | | | 218,242 | | | | | | — | | | | | | 220,626 | | |
State and municipal obligations
|
| | | | — | | | | | | 19,299 | | | | | | — | | | | | | 19,299 | | |
Commercial paper
|
| | | | — | | | | | | 4,997 | | | | | | — | | | | | | 4,997 | | |
Certificates of deposit
|
| | | | — | | | | | | 5,701 | | | | | | — | | | | | | 5,701 | | |
Mortgage-backed securities
|
| | | | 3,166 | | | | | | — | | | | | | — | | | | | | 3,166 | | |
Other
|
| | | | — | | | | | | 1,100 | | | | | | — | | | | | | 1,100 | | |
Forward contract on equity securities(1)
|
| | | | — | | | | | | 4,243 | | | | | | — | | | | | | 4,243 | | |
Total assets at fair value
|
| | | | $ 547,479 | | | | | | $ 394,138 | | | | | | $ — | | | | | | $ 941,617 | | |
Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | |
Contingent consideration
|
| | | | $ — | | | | | | $ — | | | | | | $ 7,188 | | | | | | $ 7,188 | | |
| | |
December 31, 2020
|
| |||||||||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash equivalents
|
| | | | $ 149,499 | | | | | | $ 4,019 | | | | | | $ — | | | | | | $ 153,518 | | |
Available for sale:
|
| | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government and agency obligations
|
| | | | 197,886 | | | | | | 95,193 | | | | | | — | | | | | | 293,079 | | |
Corporate obligations
|
| | | | — | | | | | | 281,631 | | | | | | — | | | | | | 281,631 | | |
State and municipal obligations
|
| | | | — | | | | | | 18,566 | | | | | | — | | | | | | 18,566 | | |
Commercial paper
|
| | | | — | | | | | | 14,991 | | | | | | — | | | | | | 14,991 | | |
Certificates of deposit
|
| | | | — | | | | | | 53,505 | | | | | | — | | | | | | 53,505 | | |
Other
|
| | | | — | | | | | | 5,536 | | | | | | — | | | | | | 5,536 | | |
Total assets at fair value
|
| | | | $ 347,385 | | | | | | $ 473,441 | | | | | | $ — | | | | | | $ 820,826 | | |
Liabilities
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Contingent consideration
|
| | | | $ — | | | | | | $ — | | | | | | $ 5,716 | | | | | | $ 5,716 | | |
| | |
March 31, 2021
|
| | | | | | | | | | |||||||||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| | | | ||||||||||||||||||
Cash equivalents
|
| | | | $ 11,784 | | | | | | $ — | | | | | | $ — | | | | | | $ 11,784 | | | | | | ||||||
Held to maturity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||
U.S. government and agency obligations
|
| | | | 7,220 | | | | | | — | | | | | | — | | | | | | 7,220 | | | | | | ||||||
Certificates of deposit
|
| | | | — | | | | | | 1,119 | | | | | | — | | | | | | 1,119 | | | | | | ||||||
Total held to maturity
|
| | | | $ 19,004 | | | | | | $ 1,119 | | | | | | $ — | | | | | | $ 20,123 | | | | | |
| | |
December 31, 2020
|
| |||||||||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||
Cash equivalents
|
| | | | $ 222 | | | | | | $ — | | | | | | $ — | | | | | | $ 222 | | |
Held to maturity: | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government and agency obligations
|
| | | | 6,732 | | | | | | — | | | | | | — | | | | | | 6,732 | | |
Certificates of deposit
|
| | | | — | | | | | | 1,119 | | | | | | — | | | | | | 1,119 | | |
Total held to maturity
|
| | | | $ 6,954 | | | | | | $ 1,119 | | | | | | $ — | | | | | | $ 8,073 | | |
| | |
2021
|
| |
2020
|
| ||||||
Balance at beginning of period
|
| | | | $ 5,716 | | | | | | $ 5,716 | | |
Change in fair value of contingent consideration
|
| | | | 1,472 | | | | | | — | | |
Balance at end of period
|
| | | | $ 7,188 | | | | | | $ 5,716 | | |
| | |
Bright HealthCare
|
| |
NeueHealth
|
| ||||||||||||||||||
| | |
Gross Carrying
Amount |
| |
Cumulative
Impairment |
| |
Gross Carrying
Amount |
| |
Cumulative
Impairment |
| ||||||||||||
Balance at December 31, 2020
|
| | | | $ 197,886 | | | | | | $ — | | | | | | $ 65,149 | | | | | | $ — | | |
Acquisitions
|
| | | | 4,739 | | | | | | | | | | | | 62,827 | | | | | | | | |
Purchase adjustments
|
| | | | (1,618) | | | | | | | | | | | | — | | | | | | | | |
Balance at March 31, 2021
|
| | | | $ 201,007 | | | | | | $ — | | | | | | $ 127,976 | | | | | | $ — | | |
| | |
March 31, 2021
|
| |
December 31, 2020
|
| ||||||||||||||||||
| | |
Gross Carrying
Amount |
| |
Accumulated
Amortization |
| |
Gross Carrying
Amount |
| |
Accumulated
Amortization |
| ||||||||||||
Customer relationships
|
| | | | $ 123,751 | | | | | | $ 6,590 | | | | | | $ 117,451 | | | | | | $ 3,664 | | |
Trade names
|
| | | | 42,831 | | | | | | 2,283 | | | | | | 38,161 | | | | | | 1,604 | | |
Developed technology
|
| | | | 6,200 | | | | | | | | | | | | | | | | | | | | |
Other
|
| | | | 3,000 | | | | | | 183 | | | | | | 2,000 | | | | | | 133 | | |
Total
|
| | | | $ 175,782 | | | | | | $ 9,056 | | | | | | $ 157,612 | | | | | | $ 5,401 | | |
| | |
Fair Value
|
| |
Weighted-Average
Useful Life (in years) |
| ||||||
Customer relationships
|
| | | | $ 5,100 | | | | | | 14.3 | | |
Trade names
|
| | | | 3.970 | | | | | | 13.1 | | |
Developed technology
|
| | | | 6,200 | | | | | | 7.0 | | |
Other
|
| | | | 1,000 | | | | | | 7.0 | | |
Total
|
| | | | $ 16,270 | | | | | | 10.8 | | |
|
2021 (April — December)
|
| | | | $ 11,984 | | |
|
2022
|
| | | | 15,979 | | |
|
2023
|
| | | | 15,979 | | |
|
2024
|
| | | | 15,979 | | |
|
2025
|
| | | | 15,979 | | |
|
2026
|
| | | | 15,864 | | |
| | |
2021
|
| |
2020
|
| ||||||
Medical costs payable — January 1
|
| | | | $ 249,777 | | | | | | $ 44,804 | | |
Incurred related to:
|
| | | | | | | | | | | | |
Current year
|
| | | | 689,572 | | | | | | 141,065 | | |
Prior year
|
| | | | (3,076) | | | | | | (8,324) | | |
Total incurred
|
| | | | 686,496 | | | | | | 132,741 | | |
Paid related to:
|
| | | | | | | | | | | | |
Current year
|
| | | | 307,442 | | | | | | 55,980 | | |
Prior year
|
| | | | 153,240 | | | | | | 22,939 | | |
Total paid
|
| | | | 460,682 | | | | | | 78,919 | | |
Acquired claims liabilities
|
| | | | 13,268 | | | | | | — | | |
Medical costs payable — March 31
|
| | | | $ 488,859 | | | | | | $ 98,626 | | |
| | |
2021
|
| |
2020
|
| ||||||
Claims unpaid
|
| | | | $ 19,652 | | | | | | $ 2,326 | | |
Risk sharing amounts payable
|
| | | | 36,592 | | | | | | 3,564 | | |
Claims adjustment expense liability
|
| | | | 5,038 | | | | | | 3,283 | | |
Incurred but not reported (IBNR)
|
| | | | 427,577 | | | | | | 89,453 | | |
Total medical costs payable
|
| | | | $ 488,859 | | | | | | $ 98,626 | | |
| | |
2021
|
| |
2020
|
| ||||||
Risk-free interest rate
|
| | | | 0.77% | | | | | | 1.45% | | |
Expected volatility
|
| | | | 33.3% | | | | | | 29.0% | | |
Expected dividend rate
|
| | | | 0.0% | | | | | | 0.0% | | |
Forfeiture rate
|
| | | | 14.5% | | | | | | 14.5% | | |
Expected life in years
|
| | | | 6.1 | | | | | | 6.1 | | |
| | |
Shares
|
| |
Weighted-
Average Exercise Price |
| |
Weighted-Average
Remaining Contractual Life (In Years) |
| |
Aggregate
Intrinsic Value |
| ||||||||||||
Outstanding at January 1, 2021
|
| | | | 63,925 | | | | | | 1.47 | | | | | | 8.7 | | | | | | $ 53,573 | | |
Granted
|
| | | | 17,772 | | | | | | 2.30 | | | | | | | | | | | | | | |
Exercised
|
| | | | (4,661) | | | | | | 0.97 | | | | | | | | | | | | | | |
Forfeited
|
| | | | (123) | | | | | | 1.62 | | | | | | | | | | | | | | |
Expired
|
| | | | — | | | | | | — | | | | | | | | | | | | | | |
Outstanding at March 31, 2021
|
| | | | 76,913 | | | | | | $ 1.69 | | | | | | 8.9 | | | | | | $861,932 | | |
| | |
2021
|
| |
2020
|
| ||||||
Net loss attributable to Bright Heath Group, Inc. common shareholders
|
| | | | $ (25,162) | | | | | | $ (7,280) | | |
Weighted-average number of shares outstanding used to compute net loss per share
attributable to common stockholders, basic and diluted |
| | | | 140,175 | | | | | | 137,125 | | |
Net loss per share attributable to common stockholders, basic and
diluted |
| | | | $ (0.18) | | | | | | $ (0.05) | | |
| | |
2021
|
| |
2020
|
| ||||||
Redeemable preferred stock
|
| | | | 421,697 | | | | | | 282,367 | | |
Stock options to purchase common stock
|
| | | | 76,913 | | | | | | 50,573 | | |
Total
|
| | | | 498,610 | | | | | | 332,940 | | |
Three Months Ended March 31, 2021
|
| |
Bright
HealthCare |
| |
NeueHealth
|
| |
Eliminations
|
| |
Consolidated
|
| ||||||||||||
Premium revenue
|
| | | | $ 841,925 | | | | | | $ 18,706 | | | | | | $ — | | | | | | $ 860,631 | | |
Service revenue
|
| | | | — | | | | | | 8,438 | | | | | | — | | | | | | 8,438 | | |
Investment income
|
| | | | 1,246 | | | | | | 4,243 | | | | | | — | | | | | | 5,489 | | |
Total unaffiliated revenue
|
| | | | 843,171 | | | | | | 31,387 | | | | | | — | | | | | | 874,558 | | |
Affiliated revenue
|
| | | | — | | | | | | 17,152 | | | | | | (17,152) | | | | | | — | | |
Total segment revenue
|
| | | | 843,171 | | | | | | 48,539 | | | | | | (17,152) | | | | | | 874,558 | | |
Operating loss
|
| | | | (24,215) | | | | | | 1,382 | | | | | | — | | | | | | (22,833) | | |
Depreciation and amortization
|
| | | | $ 2,357 | | | | | | $ 2,224 | | | | | | $ — | | | | | | $ 4,581 | | |
Three Months Ended March 31, 2020
|
| |
Bright
HealthCare |
| |
NeueHealth
|
| |
Eliminations
|
| |
Consolidated
|
| ||||||||||||
Premium revenue
|
| | | | $ 188,733 | | | | | | $ 2,004 | | | | | | $ — | | | | | | $ 190,737 | | |
Service revenue
|
| | | | — | | | | | | 4,820 | | | | | | — | | | | | | 4,820 | | |
Investment income
|
| | | | 3,009 | | | | | | — | | | | | | — | | | | | | 3,009 | | |
Total revenue
|
| | | | 191,742 | | | | | | 6,824 | | | | | | — | | | | | | 198,566 | | |
Affiliated revenue
|
| | | | — | | | | | | 2,707 | | | | | | (2,707) | | | | | | — | | |
Total segment revenue
|
| | | | 191,742 | | | | | | 9,531 | | | | | | (2,707) | | | | | | 198,566 | | |
Operating loss
|
| | | | (6,110) | | | | | | (1,170) | | | | | | — | | | | | | (7,280) | | |
Depreciation and amortization
|
| | | | $ 262 | | | | | | $ 525 | | | | | | $ — | | | | | | $ 787 | | |
| | |
Redeemable
Noncontrolling Interest |
| |||
Balance at January 1, 2021
|
| | | | $ 39,600 | | |
Earnings attributable to noncontrolling interest
|
| | | | 288 | | |
Measurement adjustment
|
| | | | 329 | | |
Balance at March 31, 2021
|
| | | | $ 40,217 | | |
| | |
As
Previously Reported |
| |
Adjustments
|
| |
As Restated
|
| |||||||||
Condensed Consolidated Balance Sheet as of March 31, 2021 | | | | | | | | | | | | | | | | | | | |
Goodwill
|
| | | $ | 306,828 | | | | | $ | 22,155 | | | | | $ | 328,983 | | |
Redeemable preferred stock
|
| | | | 1,713,997 | | | | | | 22,155 | | | | | | 1,736,152 | | |
Additional paid-in capital
|
| | | | 16,904 | | | | | | 3,042 | | | | | | 19,946 | | |
Accumulated deficit
|
| | | | (538,109) | | | | | | (3,042) | | | | | | (541,151) | | |
Condensed Consolidated Statement of Income (Loss) for the Three Months Ended March 31, 2021
|
| | | | | | | | | | | | | | | | | | |
Operating costs
|
| | | | 205,198 | | | | | | 3,042 | | | | | | 208,240 | | |
Net loss
|
| | | | (21,503) | | | | | | (3,042) | | | | | | (24,545) | | |
Net loss attributable to Bright Health Group, Inc. common shareholders
|
| | | | (22,120) | | | | | | (3,042) | | | | | | (25,162) | | |
Condensed Consolidated Statement of Comprehensive Income (Loss) for the Three Months Ended March 31, 2021
|
| | | | | | | | | | | | | | | | | | |
Net loss
|
| | | | (21,503) | | | | | | (3,042) | | | | | | (24,545) | | |
Comprehensive loss attributable to Bright Health Group, Inc. common shareholders
|
| | | | (23,162) | | | | | | (3,042) | | | | | | (26,204) | | |
Condensed Consolidated Statement of Changes in Redeemable Preferred Stock and Shareholders’ Deficit for the Three Months Ended March 31, 2021
|
| | | | | | | | | | | | | | | | | | |
Net loss
|
| | | | (22,120) | | | | | | (3,042) | | | | | | (25,162) | | |
Issuance of preferred stock
|
| | | | 32,982 | | | | | | 22,155 | | | | | | 55,137 | | |
Share-based compensation
|
| | | | 2,134 | | | | | | 3,042 | | | | | | 5,176 | | |
Condensed Consolidated Statement of Cash Flows for the Three Months Ended March 31, 2021
|
| | | | | | | | | | | | | | | | | | |
Net loss
|
| | | | (22,120) | | | | | | (3,042) | | | | | | (25,162) | | |
Share-based compensation
|
| | | | 2,134 | | | | | | 3,042 | | | | | | 5,176 | | |
| | |
As of December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Assets | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | | $ 488,371 | | | | | | $ 522,910 | | |
Short-term investments
|
| | | | 499,928 | | | | | | 107,682 | | |
Accounts receivable, net of allowance of $2,602 and $287, respectively
|
| | | | 60,522 | | | | | | 787 | | |
Prepaids and other current assets
|
| | | | 130,986 | | | | | | 17,221 | | |
Total current assets
|
| | | | 1,179,807 | | | | | | 648,600 | | |
Other assets: | | | | | | | | | | | | | |
Long-term investments
|
| | | | 175,176 | | | | | | 115,348 | | |
Property, equipment and capitalized software, net
|
| | | | 12,264 | | | | | | 3,231 | | |
Goodwill
|
| | | | 263,035 | | | | | | 20,125 | | |
Intangible assets, net
|
| | | | 152,211 | | | | | | 18,712 | | |
Other non-current assets
|
| | | | 28,309 | | | | | | 14,339 | | |
Total other assets
|
| | | | 630,995 | | | | | | 171,755 | | |
Total assets
|
| | | | $ 1,810,802 | | | | | | $ 820,355 | | |
Liabilities, Redeemable Noncontrolling Interest, Redeemable Preferred Stock
and Shareholders’ Deficit |
| | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Medical costs payable
|
| | | | $ 249,777 | | | | | | $ 44,804 | | |
Accounts payable
|
| | | | 57,252 | | | | | | 33,143 | | |
Unearned revenue
|
| | | | 34,628 | | | | | | 16,005 | | |
Risk adjustment payable
|
| | | | 187,777 | | | | | | 86,803 | | |
Other current liabilities
|
| | | | 35,847 | | | | | | 14,140 | | |
Total current liabilities
|
| | | | 565,281 | | | | | | 194,895 | | |
Other liabilities
|
| | | | 28,578 | | | | | | 16,837 | | |
Total liabilities
|
| | | | 593,859 | | | | | | 211,732 | | |
Commitments and contingencies (Note 14) | | | | | | | | | | | | | |
Redeemable noncontrolling interests
|
| | | | 39,600 | | | | | | — | | |
Redeemable preferred stock, $0.0001 par value; 166,307,087 and 152,878,225 shares
authorized in 2020 and 2019, respectively; 164,244,893 and 119,221,767 shares issued and outstanding in 2020 and 2019, respectively |
| | | | 1,681,015 | | | | | | 871,990 | | |
Shareholders’ deficit: | | | | | | | | | | | | | |
Common stock, $0.0001 par value; 658,993,725 and 563,612,706 shares authorized in 2020
and 2019, respectively; 137,662,698 and 135,509,085 shares issued and outstanding in 2020 and 2019, respectively |
| | | | 14 | | | | | | 14 | | |
Additional paid-in capital
|
| | | | 9,877 | | | | | | 3,184 | | |
Accumulated deficit
|
| | | | (515,989) | | | | | | (267,547) | | |
Accumulated other comprehensive income (loss)
|
| | | | 2,426 | | | | | | 982 | | |
Total shareholders’ deficit
|
| | | | (503,672) | | | | | | (263,367) | | |
Total liabilities, redeemable noncontrolling interests, redeemable preferred stock and shareholders’ deficit
|
| | | | $ 1,810,802 | | | | | | $ 820,355 | | |
| | |
For the Years Ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Revenue: | | | | | | | | | | | | | | | | | | | |
Premium revenue
|
| | | | $ 1,180,338 | | | | | | $ 272,323 | | | | | | $ 127,122 | | |
Service revenue
|
| | | | 18,514 | | | | | | — | | | | | | — | | |
Investment income
|
| | | | 8,468 | | | | | | 8,350 | | | | | | 3,510 | | |
Total revenue
|
| | | | 1,207,320 | | | | | | 280,673 | | | | | | 130,632 | | |
Operating costs: | | | | | | | | | | | | | | | | | | | |
Medical costs
|
| | | | 1,047,300 | | | | | | 224,387 | | | | | | 96,407 | | |
Operating costs
|
| | | | 409,334 | | | | | | 180,489 | | | | | | 95,836 | | |
Depreciation and amortization
|
| | | | 8,289 | | | | | | 1,134 | | | | | | 1,030 | | |
Total operating costs
|
| | | | 1,464,923 | | | | | | 406,010 | | | | | | 193,273 | | |
Loss before income taxes
|
| | | | (257,603) | | | | | | (125,337) | | | | | | (62,641) | | |
Income tax (benefit) expense
|
| | | | (9,161) | | | | | | — | | | | | | — | | |
Net loss
|
| | | | $ (248,442) | | | | | | $ (125,337) | | | | | | $ (62,641) | | |
Basic and diluted loss per share attributable to Bright Health, Inc. common shareholders
|
| | | | $ (1.82) | | | | | | $ (0.93) | | | | | | $ (0.47) | | |
Basic and diluted weighted-average common shares outstanding
|
| | | | 136,193 | | | | | | 134,486 | | | | | | 131,975 | | |
| | |
For the Years Ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Net loss
|
| | | | $ (248,442) | | | | | | $ (125,337) | | | | | | $ (62,641) | | |
Other comprehensive income (loss): | | | | | | | | | | | | | | | | | | | |
Unrealized investment holding gains arising during the year,
net of tax of $0, $0 and $0, respectively |
| | | | 1,556 | | | | | | 1,211 | | | | | | 72 | | |
Less: reclassification adjustments for investment gains (losses),
net of tax of $0, $0 and $0, respectively |
| | | | 112 | | | | | | 38 | | | | | | (17) | | |
Other comprehensive income
|
| | | | 1,444 | | | | | | 1,173 | | | | | | 89 | | |
Comprehensive loss
|
| | | | $ (246,998) | | | | | | $ (124,164) | | | | | | $ (62,552) | | |
| | |
Redeemable Preferred Stock
|
| | |
Common Stock
|
| |
Additional
Paid-In Capital |
| |
Retained
Earnings (Deficit) |
| |
Accumulated
Other Comprehensive Income (Loss) |
| |
Total
|
| ||||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| | |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||
Balance at January 1, 2018
|
| | | | 64,122 | | | | | | $ 241,690 | | | | | | | 130,262 | | | | | | $ 13 | | | | | | $ 746 | | | | | | $ (79,498) | | | | | | $ (280) | | | | | | $ (79,019) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | (62,641) | | | | | | — | | | | | | (62,641) | | |
Issuance of preferred stock
|
| | | | 26,660 | | | | | | 203,000 | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Issuance of common stock
|
| | | | — | | | | | | — | | | | | | | 3,864 | | | | | | — | | | | | | 57 | | | | | | — | | | | | | — | | | | | | 57 | | |
Share-based compensation
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 257 | | | | | | — | | | | | | — | | | | | | 257 | | |
Other comprehensive gain
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 89 | | | | | | 89 | | |
Balance at December 31, 2018
|
| | | | 90,782 | | | | | | 444,690 | | | | | | | 134,126 | | | | | | 13 | | | | | | 1,060 | | | | | | (142,139) | | | | | | (191) | | | | | | (141,257) | | |
Impact of adoption of accounting standards
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | (71) | | | | | | — | | | | | | (71) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | (125,337) | | | | | | — | | | | | | (125,337) | | |
Issuance of preferred stock
|
| | | | 28,440 | | | | | | 427,300 | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Issuance of common stock
|
| | | | — | | | | | | — | | | | | | | 1,383 | | | | | | 1 | | | | | | 260 | | | | | | — | | | | | | — | | | | | | 261 | | |
Share-based compensation
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 1,864 | | | | | | — | | | | | | — | | | | | | 1,864 | | |
Other comprehensive gain
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,173 | | | | | | 1,173 | | |
Balance at December 31, 2019
|
| | | | 119,222 | | | | | | 871,990 | | | | | | | 135,509 | | | | | | 14 | | | | | | 3,184 | | | | | | (267,547) | | | | | | 982 | | | | | | (263,367) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | (248,442) | | | | | | — | | | | | | (248,442) | | |
Issuance of preferred stock
|
| | | | 45,023 | | | | | | 809,025 | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Issuance of common stock
|
| | | | — | | | | | | — | | | | | | | 2,154 | | | | | | — | | | | | | 1,241 | | | | | | — | | | | | | — | | | | | | 1,241 | | |
Share-based compensation
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 5,452 | | | | | | — | | | | | | — | | | | | | 5,452 | | |
Other comprehensive gain
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,444 | | | | | | 1,444 | | |
Balance at December 31, 2020
|
| | | | 164,245 | | | | | | $ 1,681,015 | | | | | | | 137,663 | | | | | | $ 14 | | | | | | $ 9,877 | | | | | | $ (515,989) | | | | | | $ 2,426 | | | | | | $ (503,672) | | |
| | |
For the Years Ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Cash flows from operating activities: | | | | | | | | | | | | | | | | | | | |
Net loss
|
| | | | $ (248,442) | | | | | | $ (125,337) | | | | | | $ (62,641) | | |
Adjustments to reconcile net loss to net cash used in operating activities:
|
| | | | | | | | | | | | | | | | | | |
Depreciation and amortization
|
| | | | 8,289 | | | | | | 1,134 | | | | | | 1,030 | | |
Share-based compensation
|
| | | | 5,452 | | | | | | 1,864 | | | | | | 257 | | |
Other, net
|
| | | | 2,667 | | | | | | (1,331) | | | | | | 89 | | |
Changes in assets and liabilities:
|
| | | | — | | | | | | — | | | | | | — | | |
Accounts receivable
|
| | | | 24,631 | | | | | | (201) | | | | | | (568) | | |
Other assets
|
| | | | (44,061) | | | | | | (8,788) | | | | | | (3,697) | | |
Medical cost payable
|
| | | | 78,591 | | | | | | 21,826 | | | | | | 17,133 | | |
Accounts payable and other liabilities
|
| | | | 97,012 | | | | | | 95,690 | | | | | | 17,948 | | |
Unearned revenue
|
| | | | 18,623 | | | | | | 6,935 | | | | | | 3,415 | | |
Net cash used in operating activities
|
| | | | (57,238) | | | | | | (8,208) | | | | | | (27,034) | | |
Cash flows from investing activities: | | | | | | | | | | | | | | | | | | | |
Purchases of investments
|
| | | | (916,823) | | | | | | (300,325) | | | | | | (166,817) | | |
Proceeds from sales, paydown, and maturities of investments
|
| | | | 463,887 | | | | | | 238,330 | | | | | | 160,571 | | |
Purchases of property and equipment
|
| | | | (6,474) | | | | | | (793) | | | | | | (694) | | |
Business acquisitions, net of cash acquired
|
| | | | (230,332) | | | | | | (31,855) | | | | | | — | | |
Net cash used in investing activities
|
| | | | (689,742) | | | | | | (94,643) | | | | | | (6,940) | | |
Cash flows from financing activities: | | | | | | | | | | | | | | | | | | | |
Proceeds from issuance of common stock
|
| | | | 1,241 | | | | | | 260 | | | | | | 57 | | |
Proceeds from issuance of preferred stock
|
| | | | 711,200 | | | | | | 423,800 | | | | | | 203,000 | | |
Net cash provided by financing activities
|
| | | | 712,441 | | | | | | 424,060 | | | | | | 203,057 | | |
Net increase (decrease) in cash and cash equivalents
|
| | | | (34,539) | | | | | | 321,209 | | | | | | 169,083 | | |
Cash and cash equivalents – beginning of year
|
| | | | 522,910 | | | | | | 201,701 | | | | | | 32,618 | | |
Cash and cash equivalents – end of year
|
| | | | $ 488,371 | | | | | | $ 522,910 | | | | | | $ 201,701 | | |
Supplemental disclosures of cash flow information: | | | | | | | | | | | | | | | | | | | |
Changes in unrealized gain on available-for-sale securities in OCI
|
| | | | $ 1,444 | | | | | | $ 1,173 | | | | | | $ 89 | | |
Supplemental schedule of noncash investing activities: | | | | | | | | | | | | | | | | | | | |
Redeemable preferred stock issued for acquisitions
|
| | | | $ 97,825 | | | | | | $ 3,500 | | | | | | $ — | | |
Contingent consideration
|
| | | | — | | | | | | 5,716 | | | | | | — | | |
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Compensation and fringe benefits
|
| | | | $ 133,009 | | | | | | $ 50,325 | | | | | | $ 30,037 | | |
Professional fees
|
| | | | 78,740 | | | | | | 40,601 | | | | | | 24,446 | | |
Technology | | | | | 19,433 | | | | | | 7,243 | | | | | | 2,541 | | |
Marketing and selling expense
|
| | | | 96,942 | | | | | | 49,711 | | | | | | 26,750 | | |
Other operating expenses
|
| | | | 81,210 | | | | | | 32,609 | | | | | | 12,062 | | |
Total operating costs
|
| | | | $ 409,334 | | | | | | $ 180,489 | | | | | | $ 95,836 | | |
|
Accounts receivable
|
| | | | $ 10,238 | | |
|
Prepaids and other current assets
|
| | | | 76 | | |
|
Property and equipment
|
| | | | 1,071 | | |
|
Intangible assets
|
| | | | 66,300 | | |
|
Other non-current assets
|
| | | | 6,468 | | |
|
Total Assets
|
| | | | 84,153 | | |
|
Medical costs payable
|
| | | | 6,973 | | |
|
Other current liabilities
|
| | | | 3,004 | | |
|
Other liabilities
|
| | | | 5,534 | | |
|
Total liabilities
|
| | | | 15,511 | | |
|
Net identified assets acquired
|
| | | | 68,642 | | |
|
Goodwill
|
| | | | 45,142 | | |
|
Redeemable noncontrolling interest
|
| | | | (39,600) | | |
|
Total purchase consideration
|
| | | | $ 74,184 | | |
| | |
Pro Forma Consolidated
Statements of Income (Loss) (Unaudited) |
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Revenue | | | | | $ 1,293,923 | | | | | | $ 359,074 | | |
Net loss
|
| | | | (239,907) | | | | | | (123,415) | | |
|
Accounts receivable
|
| | | | $ 74,128 | | |
|
Prepaids and other current assets
|
| | | | 30,583 | | |
|
Property and equipment
|
| | | | 4,375 | | |
|
Intangible assets
|
| | | | 72,600 | | |
|
Other non-current assets
|
| | | | 2,906 | | |
|
Total Assets
|
| | | | 184,592 | | |
|
Medical costs payable
|
| | | | 119,408 | | |
|
Other current liabilities
|
| | | | 42,356 | | |
|
Other liabilities
|
| | | | 10,624 | | |
|
Total liabilities
|
| | | | 172,388 | | |
|
Net identified assets acquired
|
| | | | 12,204 | | |
|
Goodwill
|
| | | | 197,886 | | |
|
Total purchase consideration
|
| | | | $ 210,090 | | |
| | |
Pro Forma Consolidated
Statements of Income (Loss) (Unaudited) |
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Revenue | | | | | $ 1,403,483 | | | | | | $ 776,751 | | |
Net loss
|
| | | | (264,400) | | | | | | (173,439) | | |
|
Prepaids and other current assets
|
| | | | $ 2,725 | | |
|
Property and equipment
|
| | | | 1,341 | | |
|
Intangible assets
|
| | | | 18,712 | | |
|
Other non-current assets
|
| | | | 3,962 | | |
|
Total Assets
|
| | | | 26,740 | | |
|
Other current liabilities
|
| | | | 2,776 | | |
|
Other liabilities
|
| | | | 3,018 | | |
|
Total liabilities
|
| | | | 5,794 | | |
|
Net identified assets acquired
|
| | | | 20,946 | | |
|
Goodwill
|
| | | | 20,007 | | |
|
Total purchase price
|
| | | | $ 40,953 | | |
| | |
Pro Forma Consolidated
Statements of Income (Loss) (Unaudited) |
| |||||||||
| | |
2019
|
| |
2018
|
| ||||||
Revenue | | | | | $ 310,092 | | | | | | $ 155,196 | | |
Net loss
|
| | | | (125,565) | | | | | | (63,416) | | |
| | |
2020
|
| |||||||||||||||||||||
| | |
Amortized
Cost |
| |
Gross
Unrealized Gains |
| |
Gross
Unrealized Losses |
| |
Carrying
Value |
| ||||||||||||
Cash equivalents
|
| | | | $ 153,743 | | | | | | $ — | | | | | | $ (3) | | | | | | $ 153,740 | | |
Available for sale: | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government and agency obligations
|
| | | | 291,834 | | | | | | 1,246 | | | | | | (1) | | | | | | 293,079 | | |
Corporate obligations
|
| | | | 280,557 | | | | | | 1,104 | | | | | | (30) | | | | | | 281,631 | | |
State and municipal obligations
|
| | | | 18,459 | | | | | | 107 | | | | | | — | | | | | | 18,566 | | |
Commercial paper
|
| | | | 14,990 | | | | | | 1 | | | | | | — | | | | | | 14,991 | | |
Certificates of deposit
|
| | | | 53,504 | | | | | | 2 | | | | | | (1) | | | | | | 53,505 | | |
Other
|
| | | | 5,534 | | | | | | 2 | | | | | | — | | | | | | 5,536 | | |
Total available-for-sale securities
|
| | | | 664,878 | | | | | | 2,462 | | | | | | (32) | | | | | | 667,308 | | |
Held to maturity: | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government and agency obligations
|
| | | | 6,677 | | | | | | — | | | | | | — | | | | | | 6,677 | | |
Certificates of deposit
|
| | | | 1,119 | | | | | | — | | | | | | — | | | | | | 1,119 | | |
Total held-to-maturity securities
|
| | | | 7,796 | | | | | | — | | | | | | — | | | | | | 7,796 | | |
Total investments
|
| | | | $ 826,417 | | | | | | $ 2,462 | | | | | | $ (35) | | | | | | $ 828,844 | | |
| | |
2019
|
| |||||||||||||||||||||
| | |
Amortized
Cost |
| |
Gross
Unrealized Gains |
| |
Gross
Unrealized Losses |
| |
Carrying
Value |
| ||||||||||||
Cash equivalents
|
| | | | $ 444,314 | | | | | | $ 1 | | | | | | $ — | | | | | | $ 444,315 | | |
Available for sale: | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government and agency obligations
|
| | | | 143,746 | | | | | | 638 | | | | | | (10) | | | | | | 144,374 | | |
Corporate obligations
|
| | | | 69,034 | | | | | | 353 | | | | | | (4) | | | | | | 69,383 | | |
Asset-backed securities
|
| | | | 2,501 | | | | | | 4 | | | | | | — | | | | | | 2,505 | | |
Total available-for-sale securities
|
| | | | 215,281 | | | | | | 995 | | | | | | (14) | | | | | | 216,262 | | |
Held to maturity: | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government and agency obligations
|
| | | | 5,577 | | | | | | — | | | | | | — | | | | | | 5,577 | | |
Certificates of deposit
|
| | | | 1,191 | | | | | | — | | | | | | — | | | | | | 1,191 | | |
Total held-to-maturity securities
|
| | | | 6,768 | | | | | | — | | | | | | — | | | | | | 6,768 | | |
Total investments
|
| | | | $ 666,363 | | | | | | $ 996 | | | | | | $ (14) | | | | | | $ 667,345 | | |
| | |
December 31, 2020
|
| |||||||||||||||||||||||||||||||||
| | |
Less Than 12 Months
|
| |
12 Months or Greater
|
| |
Total
|
| |||||||||||||||||||||||||||
Description of Investments
|
| |
Fair
Value |
| |
Unrealized
Losses |
| |
Fair
Value |
| |
Unrealized
Losses |
| |
Fair
Value |
| |
Unrealized
Losses |
| ||||||||||||||||||
Cash equivalents
|
| | | | $ 25,007 | | | | | | $ (3) | | | | | | $ — | | | | | | $ — | | | | | | $ 25,007 | | | | | | $ (3) | | |
U.S. government and agency obligations
|
| | | | 12,507 | | | | | | (1) | | | | | | — | | | | | | — | | | | | | 12,507 | | | | | | (1) | | |
Corporate obligations
|
| | | | 121,006 | | | | | | (30) | | | | | | — | | | | | | — | | | | | | 121,006 | | | | | | (30) | | |
Commercial paper
|
| | | | 999 | | | | | | — | | | | | | — | | | | | | — | | | | | | 999 | | | | | | — | | |
Certificates of deposit
|
| | | | 14,003 | | | | | | (1) | | | | | | — | | | | | | — | | | | | | 14,003 | | | | | | (1) | | |
Total bonds
|
| | | | $ 173,522 | | | | | | $ (35) | | | | | | $ — | | | | | | $ — | | | | | | $ 173,522 | | | | | | $ (35) | | |
| | |
December 31, 2019
|
| |||||||||||||||||||||||||||||||||
| | |
Less Than 12 Months
|
| |
12 Months or Greater
|
| |
Total
|
| |||||||||||||||||||||||||||
Description of Investments
|
| |
Fair
Value |
| |
Unrealized
Losses |
| |
Fair
Value |
| |
Unrealized
Losses |
| |
Fair
Value |
| |
Unrealized
Losses |
| ||||||||||||||||||
U.S. government and agency obligations
|
| | | | 8,469 | | | | | | (9) | | | | | | 1,645 | | | | | | (1) | | | | | | 10,114 | | | | | | (10) | | |
Corporate obligations
|
| | | | 5,498 | | | | | | (4) | | | | | | — | | | | | | — | | | | | | 5,498 | | | | | | (4) | | |
Total bonds
|
| | | | $ 13,967 | | | | | | $ (13) | | | | | | $ 1,645 | | | | | | $ (1) | | | | | | $ 15,612 | | | | | | $ (14) | | |
| | |
2020
|
| |||||||||
| | |
Amortized
Cost |
| |
Fair
Value |
| ||||||
Due in one year or less
|
| | | | $ 497,885 | | | | | | $ 498,865 | | |
Due after one year through five years
|
| | | | 165,793 | | | | | | 167,242 | | |
Due after five years through 10 years
|
| | | | — | | | | | | — | | |
Due after 10 years
|
| | | | 1,200 | | | | | | 1,200 | | |
Total debt securities
|
| | | | $ 664,878 | | | | | | $ 667,307 | | |
| | |
2020
|
| |||||||||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||
Cash equivalents
|
| | | | $ 149,499 | | | | | | $ 4,019 | | | | | | $ — | | | | | | $ 153,518 | | |
Available for sale: | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government and agency obligations
|
| | | | 197,886 | | | | | | 95,193 | | | | | | — | | | | | | 293,079 | | |
Corporate obligations
|
| | | | — | | | | | | 281,631 | | | | | | — | | | | | | 281,631 | | |
State and municipal obligations
|
| | | | — | | | | | | 18,566 | | | | | | — | | | | | | 18,566 | | |
Commercial paper
|
| | | | — | | | | | | 14,991 | | | | | | — | | | | | | 14,991 | | |
Certificates of deposit
|
| | | | — | | | | | | 53,505 | | | | | | — | | | | | | 53,505 | | |
Other
|
| | | | — | | | | | | 5,536 | | | | | | — | | | | | | 5,536 | | |
Total assets at fair value
|
| | | | $ 347,385 | | | | | | $ 473,441 | | | | | | $ — | | | | | | $ 820,826 | | |
Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | |
Contingent consideration
|
| | | | $ — | | | | | | $ — | | | | | | $ 5,716 | | | | | | $ 5,716 | | |
| | |
2019
|
| |||||||||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||
Cash equivalents
|
| | | | $ 444,215 | | | | | | $ 100 | | | | | | $ — | | | | | | $ 444,315 | | |
Available for sale: | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government and agency obligations
|
| | | | 95,149 | | | | | | 49,225 | | | | | | — | | | | | | 144,374 | | |
Corporate obligations
|
| | | | — | | | | | | 69,383 | | | | | | — | | | | | | 69,383 | | |
Asset-backed securities
|
| | | | — | | | | | | 2,505 | | | | | | — | | | | | | 2,505 | | |
Total assets at fair value
|
| | | | $ 539,364 | | | | | | $ 121,213 | | | | | | $ — | | | | | | $ 660,577 | | |
Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | |
Contingent consideration
|
| | | | $ — | | | | | | $ — | | | | | | $ 5,716 | | | | | | $ 5,716 | | |
| | |
2020
|
| |||||||||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||
Cash equivalents
|
| | | | $ 222 | | | | | | $ — | | | | | | $ — | | | | | | $ 222 | | |
Held to maturity: | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government and agency obligations
|
| | | | 6,732 | | | | | | — | | | | | | — | | | | | | 6,732 | | |
Certificates of deposit
|
| | | | — | | | | | | 1,119 | | | | | | — | | | | | | 1,119 | | |
Total held to maturity
|
| | | | $ 6,954 | | | | | | $ 1,119 | | | | | | $ — | | | | | | $ 8,073 | | |
| | |
2019
|
| |||||||||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||
Held to maturity: | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. government and agency obligations
|
| | | | $ 5,577 | | | | | | $ — | | | | | | $ — | | | | | | $ 5,577 | | |
Certificates of deposit
|
| | | | — | | | | | | 1,191 | | | | | | — | | | | | | 1,191 | | |
Total held to maturity
|
| | | | $ 5,577 | | | | | | $ 1,191 | | | | | | $ — | | | | | | $ 6,768 | | |
| | |
2020
|
| |
2019
|
| ||||||
Software | | | | | $ 13,202 | | | | | | $ 3,235 | | |
Leasehold improvements
|
| | | | 3,604 | | | | | | 2,331 | | |
Medical equipment
|
| | | | 705 | | | | | | 33 | | |
Gross property and equipment
|
| | | | 17,511 | | | | | | 5,599 | | |
Less accumulated depreciation
|
| | | | (5,247) | | | | | | (2,368) | | |
Property and equipment, net
|
| | | | $ 12,264 | | | | | | $ 3,231 | | |
| | |
Bright HealthCare
|
| |
NeueHealth
|
| ||||||||||||||||||
| | |
Gross Carrying
Amount |
| |
Cumulative
Impairment |
| |
Gross Carrying
Amount |
| |
Cumulative
Impairment |
| ||||||||||||
Balance at January 1, 2019
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Acquisitions
|
| | | | — | | | | | | — | | | | | | 20,125 | | | | | | — | | |
Balance at December 31, 2019
|
| | | | — | | | | | | — | | | | | | 20,125 | | | | | | — | | |
Acquisitions
|
| | | | 197,886 | | | | | | | | | | | | 45,142 | | | | | | | | |
Purchase adjustments
|
| | | | — | | | | | | — | | | | | | (118) | | | | | | — | | |
Balance at December 31, 2020
|
| | | $ | 197,886 | | | | | $ | — | | | | | $ | 65,149 | | | | | $ | — | | |
| | |
December 31, 2020
|
| |
December 31, 2019
|
| ||||||||||||||||||
| | |
Gross Carrying
Amount |
| |
Accumulated
Amortization |
| |
Gross Carrying
Amount |
| |
Accumulated
Amortization |
| ||||||||||||
Customer relationships
|
| | | | $ 117,451 | | | | | | $ 3,664 | | | | | | $ 11,251 | | | | | | $ — | | |
Trade names
|
| | | | 38,161 | | | | | | 1,604 | | | | | | 7,461 | | | | | | — | | |
Other | | | | | 2,000 | | | | | | 133 | | | | | | — | | | | | | — | | |
Total | | | | | $ 157,612 | | | | | | $ 5,401 | | | | | | $ 18,712 | | | | | | $ — | | |
| | |
2020
|
| |
2019
|
| ||||||||||||||||||
| | |
Fair Value
|
| |
Weighted-
Average Useful Life (in years) |
| |
Fair Value
|
| |
Weighted-
Average Useful Life (in years) |
| ||||||||||||
Customer relationships
|
| | | | $ 106,200 | | | | | | 10.6 | | | | | | $ 11,251 | | | | | | 10.0 | | |
Trade names
|
| | | | 30,700 | | | | | | 15.0 | | | | | | 7,461 | | | | | | 15.0 | | |
Other | | | | | 2,000 | | | | | | 10.0 | | | | | | — | | | | | | — | | |
Total | | | | | $ 138,900 | | | | | | 11.6 | | | | | | $ 18,712 | | | | | | 12.0 | | |
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Medical costs payable – January 1
|
| | | | $ 44,804 | | | | | | $ 22,978 | | | | | | $ 5,845 | | |
Incurred related to:
|
| | | | | | | | | | | | | | |||||
Current year
|
| | | | 1,057,064 | | | | | | 233,447 | | | | | | 97,587 | | |
Prior year
|
| | | | (8,622) | | | | | | (7,427) | | | | | | (1,181) | | |
Total incurred
|
| | | | 1,048,442 | | | | | | 226,020 | | | | | | (96,406) | | |
Paid related to:
|
| | | | | | | | | | | | | | |||||
Current year
|
| | | | 941,401 | | | | | | 188,919 | | | | | | 74,750 | | |
Prior year
|
| | | | 33,479 | | | | | | 15,275 | | | | | | 4,523 | | |
Total paid
|
| | | | 974,880 | | | | | | 204,194 | | | | | | 79,273 | | |
Acquired claims liabilities
|
| | | | 131,411 | | | | | | — | | | | | | — | | |
Medical costs payable – December 31
|
| | | | $ 249,777 | | | | | | $ 44,804 | | | | | | $ 22,978 | | |
| | |
2020
|
| |
2019
|
| ||||||
Claims unpaid
|
| | | | $ 23,269 | | | | | | $ 3,245 | | |
Risk sharing amounts payable
|
| | | | 16,963 | | | | | | 3,572 | | |
Claims adjustment expense liability
|
| | | | 2,487 | | | | | | 1,345 | | |
Incurred but not reported (IBNR)
|
| | | | 207,058 | | | | | | 36,642 | | |
Total medical costs payable
|
| | | | $ 249,777 | | | | | | $ 44,804 | | |
| | |
Incurred Claims and Allocated Claim Adjustment
Expenses, Net of Reinsurance (in thousands) |
| |
Total Incurred but
Not Reported Liabilities Plus Expected Development on Reported Claims |
| ||||||||||||||||||
| | |
For the Years Ended December 31,
|
| |||||||||||||||||||||
Accident Year
|
| |
(Unaudited)
2018 |
| |
(Unaudited)
2019 |
| |
2020
|
| |||||||||||||||
2018 | | | | | 435,729 | | | | | | 435,230 | | | | | | 436,786 | | | | | | 41 | | |
2019 | | | | | — | | | | | | 733,216 | | | | | | 724,120 | | | | | | 1,321 | | |
2020 | | | | | — | | | | | | — | | | | | | 1,303,467 | | | | | | 244,593 | | |
Total
|
| | | | | | | | | | | | | | | | $ 2,464,373 | | | | | | | | |
| | |
Cumulative Paid Claims and Allocated Claim Adjustment
Expenses, Net of Reinsurance (in thousands) |
| |||||||||||||||
| | |
For the Years Ended December 31,
|
| |||||||||||||||
Accident Year
|
| |
(Unaudited)
2018 |
| |
(Unaudited)
2019 |
| |
2020
|
| |||||||||
2018 | | | | | 366,558 | | | | | | 435,065 | | | | | | 436,882 | | |
2019 | | | | | — | | | | | | 620,495 | | | | | | 717,624 | | |
2020 | | | | | — | | | | | | — | | | | | | 1,065,531 | | |
Total
|
| | | | | | | | | | | | | | | | $ 2,220,037 | | |
All outstanding liabilities before 2018, net of reinsurance
|
| | | | | | | | | | | | | | | | 121 | | |
Liabilities for claim and claim adjustment expenses, net of reinsurance
|
| | | | | | | | | | | | | | | | $ 244,457 | | |
| | |
December 31, 2020
|
| |||
Net outstanding liabilities
|
| | | | $ 244,457 | | |
Reinsurance recoverable on unpaid claims
|
| | | | 5,320 | | |
Total gross liability for unpaid claims and claims
|
| | | | $ 249,777 | | |
Preferred Stock Series
|
| |
Preferred
Shares Authorized |
| |
Preferred
Shares Issued |
| |
Preferred
Shares Outstanding |
| |
Carrying
Value |
| |
Liquidation
Preference |
| |
Common Stock
Issuable Upon Conversion |
| ||||||||||||||||||
A | | | | | 32,439 | | | | | | 32,439 | | | | | | 32,439 | | | | | | $ 81,690 | | | | | | $ 82,718 | | | | | | 22,018 | | |
B | | | | | 32,278 | | | | | | 32,278 | | | | | | 32,278 | | | | | | 163,000 | | | | | | 163,000 | | | | | | 96,834 | | |
C | | | | | 26,065 | | | | | | 26,065 | | | | | | 26,065 | | | | | | 200,000 | | | | | | 200,000 | | | | | | 78,196 | | |
D | | | | | 48,101 | | | | | | 48,101 | | | | | | 48,101 | | | | | | 718,500 | | | | | | 722,710 | | | | | | 144,304 | | |
E | | | | | 27,424 | | | | | | 25,362 | | | | | | 25,362 | | | | | | 517,825 | | | | | | 517,825 | | | | | | 76,085 | | |
Total | | | | | 166,307 | | | | | | 164,245 | | | | | | 164,245 | | | | | | $ 1,681,015 | | | | | | $ 1,686,253 | | | | | | 417,437 | | |
Preferred Stock Series
|
| |
Preferred
Shares Authorized |
| |
Preferred
Shares Issued |
| |
Preferred
Shares Outstanding |
| |
Carrying
Value |
| |
Liquidation
Preference |
| |
Common Stock
Issuable Upon Conversion |
| ||||||||||||||||||
A | | | | | 39,778 | | | | | | 32,439 | | | | | | 32,439 | | | | | | $ 81,690 | | | | | | $ 82,718 | | | | | | 22,018 | | |
B | | | | | 32,278 | | | | | | 32,278 | | | | | | 32,278 | | | | | | 163,000 | | | | | | 163,000 | | | | | | 96,834 | | |
C | | | | | 26,065 | | | | | | 26,065 | | | | | | 26,065 | | | | | | 200,000 | | | | | | 200,000 | | | | | | 78,196 | | |
D | | | | | 54,757 | | | | | | 28,440 | | | | | | 28,440 | | | | | | 427,300 | | | | | | 427,300 | | | | | | 85,319 | | |
Total | | | | | 152,878 | | | | | | 119,222 | | | | | | 119,222 | | | | | | $ 871,990 | | | | | | $ 873,018 | | | | | | 282,367 | | |
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Risk-free interest rate
|
| | | | 0.88% | | | | | | 2.22% | | | | | | 2.75% | | |
Expected volatility
|
| | | | 31.3% | | | | | | 28.3% | | | | | | 28.5% | | |
Expected dividend rate
|
| | | | 0.0% | | | | | | 0.0% | | | | | | 0.0% | | |
Forfeiture rate
|
| | | | 14.5% | | | | | | 14.5% | | | | | | 14.5% | | |
Expected life in years
|
| | | | 6.1 | | | | | | 6.1 | | | | | | 6.1 | | |
| | |
Shares
|
| |
Weighted-
Average Exercise Price |
| |
Weighted-Average
Remaining Contractual Life (In Years) |
| |
Aggregate
Intrinsic Value |
| ||||||||||||
Outstanding at January 1, 2020
|
| | | | 37,872 | | | | | | 1.06 | | | | | | 9.0 | | | | | | $ 27,065 | | |
Granted
|
| | | | 30,975 | | | | | | 1.90 | | | | | | | | | | | | | | |
Exercised
|
| | | | (2,154) | | | | | | 0.74 | | | | | | | | | | | | | | |
Forfeited
|
| | | | (2,731) | | | | | | 1.24 | | | | | | | | | | | | | | |
Expired
|
| | | | (37) | | | | | | 1.02 | | | | | | | | | | | | | | |
Outstanding at December 31, 2020
|
| | | | 63,925 | | | | | | $ 1.47 | | | | | | 8.7 | | | | | | $ 53,573 | | |
| | |
Shares
|
| |
Weighted-Average
Grant Date Fair Value per Share |
| ||||||
RSA unvested at January 1, 2020
|
| | | | 291 | | | | | | 0.01 | | |
RSA granted during the year
|
| | | | — | | | | | | — | | |
RSA canceled during the year
|
| | | | — | | | | | | — | | |
RSA vested during the year
|
| | | | (291) | | | | | | 0.01 | | |
RSA unvested at December 31, 2020
|
| | | | — | | | | | | $ — | | |
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Net loss
|
| | | | $ (248,442) | | | | | | $ (125,337) | | | | | | $ (62,641) | | |
Weighted-average number of shares outstanding used to compute
net loss per share attributable to common stockholders, basic and diluted |
| | | | 136,193 | | | | | | 134,486 | | | | | | 131,975 | | |
Net loss per share attributable to common stockholders, basic and diluted
|
| | | | $ (1.82) | | | | | | $ (0.93) | | | | | | $ (0.47) | | |
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Redeemable preferred stock
|
| | | | 417,437 | | | | | | 282,367 | | | | | | 197,047 | | |
Stock options to purchase common stock
|
| | | | 63,925 | | | | | | 37,872 | | | | | | 12,719 | | |
Total | | | | | 481,362 | | | | | | 320,239 | | | | | | 209,766 | | |
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Current | | | | | $ — | | | | | | $ — | | | | | | $ — | | |
Deferred | | | | | (9,161) | | | | | | — | | | | | | — | | |
Total income tax (benefit) expense
|
| | | | $ (9,161) | | | | | | $ — | | | | | | $ — | | |
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Tax (benefit) expense at federal statutory rate
|
| | | | $ (52,173) | | | | | | $ (26,321) | | | | | | $ (13,155) | | |
Increase (decrease) in income taxes resulting from: | | | | | | | | | | | | | | | | | | | |
Adjustment to deferred tax valuation allowance
|
| | | | 43,012 | | | | | | 26,321 | | | | | | 13,155 | | |
Income tax (benefit) expense
|
| | | | $ (9,161) | | | | | | $ — | | | | | | $ — | | |
Effective tax rate
|
| | | | 3.6% | | | | | | 0.0% | | | | | | 0.0% | | |
| | |
2020
|
| |
2019
|
| ||||||
Deferred tax assets: | | | | | | | | | | | | | |
Net operating loss carryforward
|
| | | | $ 107,002 | | | | | | $ 53,325 | | |
Premiums received in advance
|
| | | | 1,454 | | | | | | 672 | | |
Accrued salaries and benefits
|
| | | | 5,246 | | | | | | 1,557 | | |
Section 195 startup expenditures
|
| | | | 2,164 | | | | | | 2,364 | | |
Other
|
| | | | 1,173 | | | | | | 371 | | |
| | | | | 117,039 | | | | | | 58,289 | | |
Less valuation allowance
|
| | | | (99,537) | | | | | | (57,491) | | |
Total deferred tax assets
|
| | | | 17,502 | | | | | | 798 | | |
Deferred tax liabilities: | | | | | | | | | | | | | |
Prepaid expenses
|
| | | | (1,195) | | | | | | (373) | | |
Fixed assets
|
| | | | (628) | | | | | | (151) | | |
Goodwill and intangible assets
|
| | | | (15,447) | | | | | | — | | |
Unrealized gains
|
| | | | (509) | | | | | | — | | |
Investment income
|
| | | | (3) | | | | | | (274) | | |
Total deferred tax liabilities
|
| | | | (17,782) | | | | | | (798) | | |
Net deferred tax liabilities
|
| | | | $ (280) | | | | | | $ — | | |
| | |
Balance Sheet Location
|
| |
2020
|
| |
2019
|
| |||||||||
Assets | | | | | | | | | | | | | | | | | | | |
Operating lease ROU assets
|
| | | | Othernon-currentassets | | | | | | $ 26,965 | | | | | | $ 14,028 | | |
Liabilities | | | | | | | | | | | | | | | | | | | |
Operating lease liabilities — current
|
| | | | Othercurrentliabilities | | | | | | 6,569 | | | | | | 3,520 | | |
Operating lease liabilities — noncurrent
|
| | | | Otherliabilities | | | | | | 21,851 | | | | | | 10,950 | | |
Total lease liabilities
|
| | | | | | | | | | $ 28,420 | | | | | | $ 14,470 | | |
| | |
2020
|
| |
2019
|
| ||||||
Operating cash flows from operating leases
|
| | | | $ 6,131 | | | | | | $ 1,998 | | |
ROU assets obtained in exchange for new lease liabilities
|
| | | | 7,793 | | | | | | 274 | | |
ROU assets obtained from acquisitions
|
| | | | 8,392 | | | | | | 3,925 | | |
Weighted-average remaining lease term (in years)
|
| | | | 5.6 | | | | | | 5.2 | | |
Weighted-average discount rate
|
| | | | 6.0% | | | | | | 6.0% | | |
| | |
Minimum Lease
Payments |
| |||
Years ending December 31: | | | | | | | |
2021
|
| | | | $ 7,356 | | |
2022
|
| | | | 6,692 | | |
2023
|
| | | | 5,409 | | |
2024
|
| | | | 4,858 | | |
2025
|
| | | | 3,553 | | |
Thereafter
|
| | | | 6,073 | | |
Undiscounted future minimum payments
|
| | | | 33,941 | | |
Imputed interest
|
| | | | (5,521) | | |
Total reported lease liability
|
| | | | $ 28,420 | | |
| | |
Bright
HealthCare |
| |
NeueHealth
|
| |
Eliminations
|
| |
Consolidated
|
| ||||||||||||
Premium revenue
|
| | | | $ 1,172,545 | | | | | | $ 7,793 | | | | | | $ — | | | | | | $1,180,338 | | |
Service revenue
|
| | | | — | | | | | | 18,514 | | | | | | — | | | | | | 18,514 | | |
Investment income
|
| | | | 8,468 | | | | | | — | | | | | | — | | | | | | 8,468 | | |
Total unaffiliated revenue
|
| | | | 1,181,013 | | | | | | 26,307 | | | | | | — | | | | | | 1,207,320 | | |
Affiliated revenue
|
| | | | — | | | | | | 10,840 | | | | | | (10,840) | | | | | | — | | |
Total segment revenue
|
| | | | 1,181,013 | | | | | | 37,147 | | | | | | (10,840) | | | | | | 1,207,320 | | |
Loss before income taxes
|
| | | | (248,896) | | | | | | (8,707) | | | | | | — | | | | | | (257,603) | | |
Depreciation and amortization
|
| | | | $ 6,394 | | | | | | $ 1,895 | | | | | | $ — | | | | | | $ 8,289 | | |
| | |
Redeemable
Noncontrolling Interest |
| |||
Balance at January 1, 2020
|
| | | | $ — | | |
Acquisitions
|
| | | | 39,600 | | |
Balance at December 31, 2020
|
| | | | $ 39,600 | | |
| | |
For the Years Ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Revenue: | | | | | | | | | | | | | | | | | | | |
Investment income
|
| | | | 26 | | | | | | 16 | | | | | | 8 | | |
Total revenue
|
| | | | 26 | | | | | | 16 | | | | | | 8 | | |
Operating costs: | | | | | | | | | | | | | | | | | | | |
Operating costs
|
| | | | 5,867 | | | | | | 2,194 | | | | | | 892 | | |
Total operating costs
|
| | | | 5,867 | | | | | | 2,194 | | | | | | 892 | | |
Loss before income taxes and equity in net loss of subsidiaries
|
| | | | (5,841) | | | | | | (2,178) | | | | | | (884) | | |
Income tax (benefit) expense
|
| | | | — | | | | | | (123) | | | | | | (151) | | |
Loss before equity in net loss of subsidiaries
|
| | | | (5,841) | | | | | | (2,055) | | | | | | (733) | | |
Equity in net loss of subsidiaries
|
| | | | (242,601) | | | | | | (123,282) | | | | | | (61,908) | | |
Net loss
|
| | | | (248,442) | | | | | | (125,337) | | | | | | (62,641) | | |
Unrealized investment holding gains
|
| | | | 1,556 | | | | | | 1,211 | | | | | | 72 | | |
Less: reclassification adjustments for investment gains (losses)
|
| | | | 112 | | | | | | 38 | | | | | | (17) | | |
Other comprehensive income
|
| | | | 1,444 | | | | | | 1,173 | | | | | | 89 | | |
Comprehensive loss
|
| | | | $ (246,998) | | | | | | $ (124,164) | | | | | | $ (62,552) | | |
| | |
As of December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Assets | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | | $ 1,708 | | | | | | $ 563 | | |
Short-term investments
|
| | | | 1,119 | | | | | | 1,191 | | |
Investment in subsidiaries
|
| | | | 1,172,126 | | | | | | 605,702 | | |
Related-party receivable, net
|
| | | | — | | | | | | 123 | | |
Other assets
|
| | | | 64 | | | | | | 62 | | |
Total assets
|
| | | | 1,175,017 | | | | | | 607,641 | | |
Liabilities, Redeemable Preferred Stock and Shareholders’ Deficit | | | | | | | | | | | | | |
Related-party payable, net
|
| | | | 100 | | | | | | — | | |
Commitments and contingencies (Note 14) | | | | | | | | | | | | | |
Redeemable preferred stock, $0.0001 par value; 166,307,087 and 152,878,225 shares authorized in 2020 and 2019, respectively; 164,244,893 and 119,221,767 shares issued and outstanding in 2020 and 2019, respectively
|
| | | | 1,681,015 | | | | | | 871,990 | | |
Shareholders’ equity (deficit): | | | | | | | | | | | | | |
Common stock, $0.0001 par value; 658,993,725 and 563,612,706 shares authorized in 2020 and 2019, respectively; 137,662,698 and 135,509,085 shares issued and outstanding in 2020 and 2019, respectively
|
| | | | 14 | | | | | | 14 | | |
Additional paid-in capital
|
| | | | 9,877 | | | | | | 3,184 | | |
Retained earnings (deficit)
|
| | | | (515,989) | | | | | | (267,547) | | |
Total shareholders’ deficit
|
| | | | (506,098) | | | | | | (264,349) | | |
Total liabilities, redeemable preferred stock and shareholders’ deficit
|
| | | | $ 1,175,017 | | | | | | $ 607,641 | | |
| | |
For the Years Ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Net cash used in operating activities
|
| | | | (168) | | | | | | (557) | | | | | | (284) | | |
Cash flows from investing activities: | | | | | | | | | | | | | | | | | | | |
Purchases of investments
|
| | | | (1,119) | | | | | | (1,191) | | | | | | (455) | | |
Proceeds from sales, paydown, and maturities of investments
|
| | | | 1,191 | | | | | | 455 | | | | | | 1,727 | | |
Capital contributions to operating subsidiaries
|
| | | | (480,869) | | | | | | (390,945) | | | | | | (204,300) | | |
Business acquisition, net of cash acquired
|
| | | | (230,331) | | | | | | (31,855) | | | | | | — | | |
Net cash used in investing activities
|
| | | | (711,128) | | | | | | (423,536) | | | | | | (203,028) | | |
Cash flows from financing activities: | | | | | | | | | | | | | | | | | | | |
Proceeds from issuance of common stock
|
| | | | 1,241 | | | | | | 260 | | | | | | 57 | | |
Proceeds from issuance of preferred stock
|
| | | | 711,200 | | | | | | 423,800 | | | | | | 203,000 | | |
Net cash provided by financing activities
|
| | | | 712,441 | | | | | | 424,060 | | | | | | 203,057 | | |
Net increase in cash and cash equivalents
|
| | | | 1,145 | | | | | | (33) | | | | | | (255) | | |
Cash and cash equivalents – beginning of year
|
| | | | 563 | | | | | | 596 | | | | | | 851 | | |
Cash and cash equivalents – end of year
|
| | | | $ 1,708 | | | | | | $ 563 | | | | | | $ 596 | | |
| | |
THNM
|
| |
Zipnosis
|
| ||||||
Cash and cash equivalents
|
| | | | $ 24,059 | | | | | | $ 3,194 | | |
Accounts receivable
|
| | | | 714 | | | | | | 1,062 | | |
Short-term investments
|
| | | | 4,677 | | | | | | — | | |
Prepaids and other current assets
|
| | | | 8,337 | | | | | | 141 | | |
Property and equipment
|
| | | | — | | | | | | 232 | | |
Intangible assets
|
| | | | 8,250 | | | | | | 8,580 | | |
Long-term investments
|
| | | | 13,081 | | | | | | — | | |
Other non-current assets
|
| | | | 1,324 | | | | | | 766 | | |
Total Assets
|
| | | | 60,442 | | | | | | 13,975 | | |
Medical costs payable
|
| | | | 13,268 | | | | | | — | | |
Accounts payable
|
| | | | 14,663 | | | | | | 136 | | |
Other current liabilities
|
| | | | 6,327 | | | | | | 785 | | |
Other liabilities
|
| | | | 993 | | | | | | 1,998 | | |
Total liabilities
|
| | | | 35,251 | | | | | | 2,919 | | |
Net identified assets acquired
|
| | | | 25,191 | | | | | | 11,056 | | |
Goodwill
|
| | | | 2,282 | | | | | | 46,180 | | |
Total purchase consideration
|
| | | | $ 27,473 | | | | | | $ 57,236 | | |
| | |
Pro Forma Consolidated
Statements of Income (Loss) (Unaudited) |
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Revenue | | | | | | | | | | | | | |
THNM
|
| | | | $ 1,325,584 | | | | | | $ 453,973 | | |
Zipnosis
|
| | | | $ 1,217,899 | | | | | | $ 287,167 | | |
Net loss | | | | | | | | | | | | | |
THNM
|
| | | | $ (255,805) | | | | | | $ (121,887) | | |
Zipnosis
|
| | | | $ (251,660) | | | | | | $ (129,164) | | |
| | |
As of April 30,
2020 |
| |||
Assets | | | | | | | |
Current assets: | | | | | | | |
Cash
|
| | |
|
$ 2,500
|
| |
Premiums and risk adjustment receivables
|
| | |
|
74,578
|
| |
Other receivables
|
| | |
|
25,162
|
| |
Prepaid and other assets
|
| | |
|
4,971
|
| |
Total current assets
|
| | | | 107,211 | | |
Other assets: | | | | | | | |
Restricted cash
|
| | |
|
359
|
| |
Property, plant and equipment, net
|
| | |
|
4,375
|
| |
Other receivables
|
| | |
|
350
|
| |
Deposits and other assets
|
| | |
|
176
|
| |
Total other assets
|
| | | | 5,260 | | |
Total assets
|
| | | | $ 112,471 | | |
Liabilities and Stockholders’ Deficit | | | | | | | |
Current liabilities: | | | | | | | |
Medical claims payable
|
| | |
|
$ 90,118
|
| |
Risk-sharing arrangements
|
| | |
|
31,152
|
| |
Accrued expenses
|
| | |
|
36,074
|
| |
Accounts payable
|
| | |
|
2,354
|
| |
Accrued payroll and related liabilities
|
| | |
|
1,688
|
| |
Total current liabilities
|
| | | | 161,386 | | |
Subordinated notes payable – related parties
|
| | |
|
33,000
|
| |
Total liabilities
|
| | | | 194,386 | | |
Stockholders’ Deficit | | | | | | | |
Common stock:
|
| | | | | | |
Class A-1, no par value, 450,000 shares authorized, 100,000 shares issued and
outstanding |
| | |
|
—
|
| |
Class A-2, no par value, 450,000 shares authorized, 100,000 shares issued and
outstanding |
| | |
|
—
|
| |
Class B, no par value, 100,000 shares authorized, 4,500 shares issued and outstanding
|
| | |
|
—
|
| |
Additional paid-in capital
|
| | |
|
13,322
|
| |
Accumulated deficit
|
| | |
|
(95,237)
|
| |
Total stockholders’ deficit
|
| | | | (81,915) | | |
Total liabilities and stockholders’ deficit
|
| | | | $ 112,471 | | |
| | |
Ten Months
Ended April 30, 2020 |
| |||
Revenue | | | | | | | |
Medicare premiums
|
| | |
|
$ 446,381
|
| |
Medi-Cal premiums
|
| | |
|
370
|
| |
Other revenue
|
| | |
|
109
|
| |
Total revenue
|
| | | | 446,860 | | |
Expenses | | | | | | | |
Healthcare services
|
| | |
|
434,607
|
| |
Healthcare services to affiliates
|
| | |
|
2,620
|
| |
Marketing, general and administrative expenses
|
| | |
|
47,906
|
| |
Salaries and benefits
|
| | |
|
15,467
|
| |
Depreciation and amortization
|
| | |
|
1,293
|
| |
Interest expense, net
|
| | |
|
1,312
|
| |
Other expense
|
| | |
|
4
|
| |
Total expenses
|
| | | | 503,209 | | |
Loss before taxes
|
| | | | (56,349) | | |
Income tax (benefit) expense
|
| | | | 1 | | |
Net loss
|
| | | | $ (56,350) | | |
| | |
Class A-1
Common Stock |
| |
Class A-2
Common Stock |
| |
Class B
Common Stock |
| |
Additional
Paid-In Capital |
| |
Accumulated
Deficit |
| |
Total
|
| ||||||||||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||
Balance at June 30, 2019
|
| | | | 100,000 | | | | | | — | | | | | | 100,000 | | | | | | — | | | | | | 4,500 | | | | | | — | | | | | | 13,322 | | | | | | (38,887) | | | | | | (25,565) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (56,350) | | | | | | (56,350) | | |
Balance at April 30, 2020
|
| | | | 100,000 | | | | | | — | | | | | | 100,000 | | | | | | — | | | | | | 4,500 | | | | | | — | | | | | | 13,322 | | | | | | (95,237) | | | | | | (81,915) | | |
| | |
Ten Months
Ended April 30, 2020 |
| |||
Cash flows from operating activities | | | | | | | |
Net loss
|
| | |
|
$ (56,350)
|
| |
Adjustments to reconcile net loss to net cash and restricted cash (used in) provided by operating activities:
|
| | | | | | |
Depreciation and amortization
|
| | |
|
1,293
|
| |
Loss on disposal of equipment
|
| | |
|
4
|
| |
Changes in assets and liabilities:
|
| | | | | | |
Premiums and risk adjustment receivable
|
| | |
|
(28,920)
|
| |
Other receivables
|
| | |
|
(11,263)
|
| |
Prepaid and other assets
|
| | |
|
11,444
|
| |
Deposit and other assets
|
| | |
|
411
|
| |
Medical claims payable
|
| | |
|
27,357
|
| |
Risk-sharing arrangements
|
| | |
|
14,701
|
| |
Accrued expenses
|
| | |
|
34,186
|
| |
Accounts payable
|
| | |
|
(322)
|
| |
Accrued payroll and related liabilities
|
| | |
|
237
|
| |
Unearned premiums
|
| | |
|
(41,541)
|
| |
Net cash and restricted cash used in operating activities
|
| | |
|
(48,763)
|
| |
Cash Flows from Investing Activities | | | | | | | |
Purchases of property, plant and equipment
|
| | |
|
(2,600)
|
| |
Net cash and restricted cash used in investing activities
|
| | |
|
(2,600)
|
| |
Cash Flows from Financing Activities
|
| | | | | | |
Proceeds from subordinated notes payable – related party
|
| | |
|
8,000
|
| |
Net cash and restricted cash provided by financing activities
|
| | |
|
8,000
|
| |
Net change in cash and restricted cash
|
| | | | (43,363) | | |
Cash and restricted cash, beginning of year
|
| | | | 46,222 | | |
Cash and restricted cash, end of period
|
| | | | $ 2,859 | | |
Supplemental disclosure information: | | | | | | | |
Cash paid during the period for interest
|
| | |
|
$ 1,366
|
| |
| | |
As of April 30,
2020 |
| |||
Cash
|
| | |
|
$ 2,500
|
| |
Restricted cash
|
| | |
|
359
|
| |
Total cash and restricted cash shown on statement of cash flows
|
| | |
|
$ 2,859
|
| |
| | |
Estimated Lives
|
|
Buildings and improvement equipment | | |
5 to 30 years
|
|
Equipment | | |
5 to 7 years
|
|
Leasehold improvements | | |
Shorter of the none-cancelable lease term or the unique useful life of the asset
|
|
Furniture and fixtures | | |
5 years
|
|
Computer and software | | |
3 to 4 years
|
|
| | |
As of April 30,
2020 |
| |||
CMS risk adjustment – Part C
|
| | |
|
$ 71,292
|
| |
CMS risk adjustment – Part D
|
| | |
|
2,748
|
| |
HealthNet SPD adjustment
|
| | |
|
450
|
| |
CMS Medical Premiums AR
|
| | |
|
88
|
| |
Total
|
| | |
|
$ 74,578
|
| |
| | |
As of April 30,
2020 |
| |||
Current other receivables | | | |||||
Pharmacy rebates
|
| | |
|
$ 18,211
|
| |
Provider IBNR receivable
|
| | |
|
4,490
|
| |
Due from providers
|
| | |
|
1,697
|
| |
Insurance settlement
|
| | |
|
764
|
| |
Total current other receivables
|
| | |
|
25,162
|
| |
Non-current secured third-party note receivable(1)
|
| | |
|
350
|
| |
Total
|
| | |
|
$ 25,512
|
| |
| | |
As of April 30,
2020 |
| |||
Advertising and sales commission
|
| | |
|
$ 3,641
|
| |
Deferred charges
|
| | |
|
790
|
| |
Other
|
| | |
|
540
|
| |
Total
|
| | |
|
$ 4,971
|
| |
| | |
As of April 30,
2020 |
| |||
Equipment
|
| | |
|
$ 5,973
|
| |
Furniture and fixtures
|
| | |
|
573
|
| |
Leasehold improvements
|
| | |
|
567
|
| |
Computer hardware and software
|
| | |
|
7,199
|
| |
Total property, plant and equipment
|
| | |
|
14,312
|
| |
Less: accumulated depreciation and amortization
|
| | |
|
(9,937)
|
| |
Total
|
| | |
|
$ 4,375
|
| |
| | |
As of April 30,
2020 |
| |||
IBNR Beginning balance
|
| | |
|
$ 55,749
|
| |
Incurred related to: | | | | | | | |
Current period
|
| | |
|
184,012
|
| |
Prior periods
|
| | |
|
11,245
|
| |
| | | | | 195,257 | | |
Paid related to: | | | | | | | |
Current period
|
| | |
|
(159,878)
|
| |
Prior periods
|
| | |
|
(25,440)
|
| |
| | | | | (185,318) | | |
IBNR Ending balance
|
| | |
|
65,688
|
| |
Claims payable, risk share, and other reserves
|
| | |
|
24,430
|
| |
Total
|
| | |
|
$ 90,118
|
| |
| | |
As of April 30,
2020 |
| |||
UCAP Promissory Note
|
| | |
|
$ 16,500
|
| |
Family Notes
|
| | |
|
16,500
|
| |
Total
|
| | |
|
$ 33,000
|
| |
As of April 30,
|
| |
Total
|
| |||
Remainder of 2020
|
| | | | $ 204 | | |
2021
|
| | | | 1,250 | | |
2022
|
| | | | 1,188 | | |
Total
|
| | | | $ 2,642 | | |
| | |
As of June 30,
2019 |
| |||
Assets | | | | | | | |
Current assets: | | | | | | | |
Cash
|
| | | | $ 45,870 | | |
Premiums and risk adjustment receivables
|
| | | | 45,658 | | |
Other receivables
|
| | | | 14,249 | | |
Prepaid and other assets
|
| | | | 16,415 | | |
Total current assets
|
| | | | 122,192 | | |
Other assets: | | | | | | | |
Restricted cash
|
| | | | 352 | | |
Property, plant and equipment, net
|
| | | | 3,072 | | |
Deposits and other assets
|
| | | | 587 | | |
Total other assets
|
| | | | 4,011 | | |
Total assets
|
| | | | $ 126,203 | | |
Liabilities and Stockholders’ Deficit | | | | | | | |
Current liabilities: | | | | | | | |
Medical claims payable
|
| | | | $ 62,761 | | |
Risk-sharing arrangements
|
| | | | 16,451 | | |
Accrued expenses
|
| | | | 1,888 | | |
Accounts payable
|
| | | | 2,676 | | |
Accrued payroll and related liabilities
|
| | | | 1,451 | | |
Unearned premiums
|
| | | | 41,541 | | |
Total current liabilities
|
| | | | 126,768 | | |
Subordinated notes payable – related parties
|
| | | | 25,000 | | |
Total liabilities
|
| | | | 151,768 | | |
Stockholders’ Deficit | | | | | | | |
Common stock: | | | | | | | |
Class A-1, no par value, 450,000 shares authorized, 100,000 shares issued and outstanding
|
| | | | — | | |
Class A-2, no par value, 450,000 shares authorized, 100,000 shares issued and outstanding
|
| | | | — | | |
Class B, no par value, 100,000 shares authorized, 4,500 shares issued and outstanding
|
| | | | — | | |
Additional paid-in capital
|
| | | | 13,322 | | |
Accumulated deficit
|
| | | | (38,887) | | |
Total stockholders’ deficit
|
| | | | (25,565) | | |
Total liabilities and stockholders’ deficit
|
| | | | $ 126,203 | | |
| | |
Year Ended
June 30, 2019 |
| |||
Revenue | | | | | | | |
Medicare premiums
|
| | | | $ 419,175 | | |
Medi-Cal premiums
|
| | | | 520 | | |
Other revenue
|
| | | | 83 | | |
Total revenue
|
| | | | 419,778 | | |
Expenses | | | | | | | |
Healthcare services
|
| | | | 371,480 | | |
Healthcare services to affiliates
|
| | | | 3,536 | | |
Marketing, general and administrative expenses
|
| | | | 33,054 | | |
Salaries and benefits
|
| | | | 12,280 | | |
Depreciation and amortization
|
| | | | 1,115 | | |
Interest expense, net
|
| | | | 1,235 | | |
Total expenses
|
| | | | 422,700 | | |
Loss from continuing operations before taxes
|
| | | | (2,922) | | |
Income tax expense
|
| | | | 1 | | |
Loss from continuing operations
|
| | | | (2,923) | | |
Discontinued operations (Note 2) | | | | | | | |
Loss from HealthNet operations
|
| | | | (4,865) | | |
Loss from discontinued operations
|
| | | | (4,865) | | |
Net loss
|
| | | | $ (7,788) | | |
| | |
Class A-1
Common Stock |
| |
Class A-2
Common Stock |
| |
Class B
Common Stock |
| |
Additional
Paid-In Capital |
| |
Accumulated
Deficit |
| |
Total
|
| ||||||||||||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||
Balance at June 30, 2018
|
| | | | 100,000 | | | | | | $ — | | | | | | 100,000 | | | | | | $ — | | | | | | 4,500 | | | | | | $ — | | | | | | $ 13,322 | | | | | | $ (31,099) | | | | | | $ (17,777) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (7,788) | | | | | | (7,788) | | |
Balance at June 30, 2019
|
| | | | 100,000 | | | | | | $ — | | | | | | 100,000 | | | | | | $ — | | | | | | 4,500 | | | | | | $ — | | | | | | $ 13,322 | | | | | | $ (38,887) | | | | | | $ (25,565) | | |
| | |
Year Ended
June 30, 2019 |
| |||
Cash flows from operating activities | | | | | | | |
Net loss
|
| | | | $ (7,788) | | |
Adjustments to reconcile net loss to net cash and restricted cash (used in) provided by operating activities:
|
| | | | | | |
Depreciation and amortization
|
| | | | 1,115 | | |
Changes in assets and liabilities:
|
| | | | | | |
Premiums and risk adjustment receivable
|
| | | | (19,746) | | |
Other receivables
|
| | | | (3,985) | | |
Prepaid and other assets
|
| | | | (309) | | |
Deposit and other assets
|
| | | | (270) | | |
Medical claims payable
|
| | | | 20,165 | | |
Risk-sharing arrangements
|
| | | | 6,382 | | |
Accrued expenses
|
| | | | (2,028) | | |
Accounts payable
|
| | | | 1,899 | | |
Accrued payroll and related liabilities
|
| | | | 254 | | |
Unearned premiums
|
| | | | 13,739 | | |
Net cash provided by operating activities
|
| | | | 9,428 | | |
Cash Flows from Investing Activities | | | | | | | |
Purchases of property, plant and equipment
|
| | | | (2,056) | | |
Net cash used in investing activities
|
| | | | (2,056) | | |
Cash Flows from Financing Activities | | | | | | | |
Proceeds from subordinated notes payable-related party, net of payments
|
| | | | 10,000 | | |
Net cash provided by financing activities
|
| | | | 10,000 | | |
Net change in cash and restricted cash
|
| | | | 17,372 | | |
Cash and restricted cash, beginning of year
|
| | | | 28,850 | | |
Cash and restricted cash, end of period
|
| | | | $ 46,222 | | |
Supplemental disclosure information: | | | | | | | |
Cash paid during the year for interest
|
| | | | $ 1,297 | | |
| | |
As of June 30,
2019 |
| |||
Cash
|
| | |
|
$ 45,870
|
| |
Restricted cash
|
| | |
|
352
|
| |
Total cash and restricted cash shown on statement of cash flows
|
| | |
|
$ 46,222
|
| |
| | |
Estimated Lives
|
|
Buildings and improvement equipment | | |
5 to 20 years
|
|
Equipment | | |
5 to 7 years
|
|
Leasehold improvements | | | Lesser of remaining life of lease or 15 years | |
Furniture and fixtures | | |
7 to 10 years
|
|
Computer and software | | |
3 to 5 years
|
|
| | |
As of June 30,
2019 |
| |||
Revenues: | | | | | | | |
Total net revenue
|
| | | | $ 6,488 | | |
Expenses: | | | | | | | |
Healthcare services
|
| | | | 9,892 | | |
Payroll and benefits
|
| | | | 1,068 | | |
Other expenses
|
| | | | 393 | | |
Total expenses
|
| | | | 11,353 | | |
Loss on discontinued operations before taxes
|
| | | | (4,865) | | |
Tax expense
|
| | | | — | | |
Total loss on discontinued operations in statement of operations
|
| | | | $ (4,865) | | |
| | |
As of June 30,
2019 |
| |||
CMS risk adjustment – Part C
|
| | | | $ 38,873 | | |
CMS risk adjustment – Part D
|
| | | | 5,084 | | |
HealthNet SPD adjustment
|
| | | | 1,188 | | |
Medi-Cal Capitation
|
| | | | 513 | | |
Total
|
| | | | $ 45,658 | | |
| | |
As of June 30,
2019 |
| |||
Due from providers
|
| | | | $ 2,766 | | |
Pharmacy rebates
|
| | | | 10,002 | | |
Insurance settlement
|
| | | | 1,331 | | |
Secured third-party note receivable(1)
|
| | | | 150 | | |
Total
|
| | | | $ 14,249 | | |
| | |
As of June 30,
2019 |
| |||
Advance capitation payment to providers
|
| | | | $ 9,671 | | |
Advertising and sales commission
|
| | | | 3,833 | | |
Deferred charges
|
| | | | 704 | | |
Other
|
| | | | 2,793 | | |
Total
|
| | | | $ 17,002 | | |
| | |
As of June 30,
2019 |
| |||
Equipment
|
| | | | $ 5,762 | | |
Furniture and fixtures
|
| | | | 547 | | |
Leasehold improvements
|
| | | | 353 | | |
Computer hardware and software
|
| | | | 5,050 | | |
Total property, plant and equipment
|
| | | | 11,712 | | |
Less: accumulated depreciation and amortization
|
| | | | 8,640 | | |
Total
|
| | | | $ 3,072 | | |
| | |
As of June 30,
2019 |
| |||
IBNR Beginning balance
|
| | | | $ 40,670 | | |
Incurred related to: | | | | | | | |
Current period
|
| | | | 169,256 | | |
Prior periods
|
| | | | (808) | | |
| | | | | 168,448 | | |
Paid related to: | | | | | | | |
Current period
|
| | | | (114,455) | | |
Prior periods
|
| | | | (38,913) | | |
| | | | | (153,369) | | |
IBNR Ending balance
|
| | | | 55,749 | | |
Claims payable, risk share, and other reserves
|
| | | | 7,012 | | |
Total
|
| | | | $ 62,761 | | |
| | |
As of June 30,
2019 |
| |||
UCAP Promissory Note
|
| | | | $ 12,500 | | |
Family Notes
|
| | | | 12,500 | | |
Total
|
| | | | $ 25,000 | | |
Years Ending June 30,
|
| |
Total
|
| |||
2020
|
| | | | $ 1,037 | | |
2021
|
| | | | 1,191 | | |
Total
|
| | | | $ 2,228 | | |
| | |
As of June 30,
2019 |
| |||
Current: | | | | | | | |
Federal
|
| | | | $ — | | |
State
|
| | | | 1 | | |
| | | | | 1 | | |
Deferred: | | | | | | | |
Federal
|
| | | | (809) | | |
State
|
| | | | (1,134) | | |
Valuation Allowance
|
| | | | 1,943 | | |
| | | | | — | | |
Provision for income taxes
|
| | | | $ 1 | | |
| | |
As of June 30,
2019 |
| |||
Federal statutory rate
|
| | | | 21.0% | | |
Effect of:
|
| | | | | | |
Change in valuation allowance
|
| | | | (17.9)% | | |
Non-deductible expenses
|
| | | | (3.3)% | | |
Other
|
| | | | 0.2% | | |
Provision for taxes
|
| | | | 0.0% | | |
| | |
As of June 30,
2019 |
| |||
Deferred tax assets: | | | | | | | |
Net operating losses
|
| | | | $ 7,540 | | |
Charitable contributions
|
| | | | 40 | | |
Tax credits
|
| | | | 97 | | |
Accrued expenses
|
| | | | 171 | | |
Deferred rent
|
| | | | 2 | | |
State taxes
|
| | | | 272 | | |
Total deferred tax assets
|
| | | | 8,122 | | |
Less: valuation allowance
|
| | | | (7,680) | | |
Total deferred tax assets
|
| | | | 442 | | |
Deferred tax liabilities: | | | | | | | |
Deferred gain on installment sale
|
| | | | — | | |
Property, plant and equipment
|
| | | | (400) | | |
State taxes
|
| | | | — | | |
Prepaid expenses
|
| | | | (42) | | |
Total deferred tax liabilities
|
| | | | (442) | | |
Deferred tax assets, net
|
| | | | $ — | | |
|
BofA Securities
|
| |
Citigroup
|
| |
Piper Sandler
|
|
|
Nomura
|
| |
RBC Capital Markets
|
|