| Schedule of Carrying Amounts and Fair Values of Financial Instruments |
The carrying amounts and fair values of the Company’s financial instruments as of June 30, 2026 are presented below (in thousands):
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Fair Value Measurements |
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|
Level 1 |
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Level 2 |
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Level 3 |
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Total |
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Assets |
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|
|
|
|
|
|
|
|
|
|
|
Money market accounts (1) |
|
$ |
6,475 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
6,475 |
|
Other (2) |
|
|
111 |
|
|
|
1,240 |
|
|
|
— |
|
|
|
1,351 |
|
Total assets |
|
$ |
6,586 |
|
|
$ |
1,240 |
|
|
$ |
— |
|
|
$ |
7,826 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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Liabilities |
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|
|
|
|
|
|
|
|
|
|
|
Sun Clinical Laboratories, a California corporation (“Sun Labs”) remaining equity interest purchase |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
4,080 |
|
|
$ |
4,080 |
|
Community Family Care Medical Group IPA, Inc. (“CFC”) contingent consideration |
|
|
— |
|
|
|
— |
|
|
|
1,296 |
|
|
|
1,296 |
|
Collaborative Health Systems, LLC, Golden Triangle Physician Alliance, and Heritage Physician Networks (“CHS”) contingent consideration |
|
|
— |
|
|
|
— |
|
|
|
3,287 |
|
|
|
3,287 |
|
Other (3) |
|
|
— |
|
|
|
— |
|
|
|
1,215 |
|
|
|
1,215 |
|
Total liabilities |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
9,878 |
|
|
$ |
9,878 |
|
(1)Included in cash and cash equivalents. (2)Consists of marketable securities and the interest rate swap. (3)Consists of a small contingent consideration liability. The carrying amounts and fair values of the Company’s financial instruments as of December 31, 2025 are presented below (in thousands):
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|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements |
|
|
|
|
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
Money market accounts (1) |
|
$ |
8,798 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
8,798 |
|
Marketable securities (2) |
|
|
115 |
|
|
|
— |
|
|
|
— |
|
|
|
115 |
|
Total assets |
|
$ |
8,913 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
8,913 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Sun Labs remaining equity interest purchase |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
7,352 |
|
|
$ |
7,352 |
|
CFC contingent consideration |
|
|
— |
|
|
|
— |
|
|
|
7,026 |
|
|
|
7,026 |
|
CHS contingent consideration |
|
|
— |
|
|
|
— |
|
|
|
7,378 |
|
|
|
7,378 |
|
Other (3) |
|
|
— |
|
|
|
817 |
|
|
|
15 |
|
|
|
832 |
|
Total liabilities |
|
$ |
— |
|
|
$ |
817 |
|
|
$ |
21,771 |
|
|
$ |
22,588 |
|
(1)Included in cash and cash equivalents. (2)Included in prepaid expenses and other current assets. (3)Consists of a small contingent consideration liability and the interest rate swap.
|
| Schedule of Change in Fair Value of Level 3 Liabilities |
The change in the fair value of Level 3 liabilities is recognized in other income (loss) or general and administrative expenses in the accompanying condensed consolidated statements of income. As of June 30, 2026, the reconciliation of Level 3 liabilities was as follows (in thousands):
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|
|
|
|
|
|
Amount |
|
Balance at January 1, 2026 |
|
$ |
21,771 |
|
Addition |
|
|
1,200 |
|
Change in fair value of existing Level 3 liabilities |
|
|
(8,093 |
) |
Settlement |
|
|
(5,000 |
) |
Balance at June 30, 2026 |
|
$ |
9,878 |
|
|