Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2023 | May 10, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-38924 | |
Entity Registrant Name | UpHealth, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 83-3838045 | |
Entity Address, Address Line One | 14000 S. Military Trail, | |
Entity Address, Address Line Two | Suite 203 | |
Entity Address, City or Town | Delray Beach, | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33484 | |
City Area Code | 888 | |
Local Phone Number | 424-3646 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 16,784,476 | |
Entity Central Index Key | 0001770141 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Common Stock, par value $0.0001 per share | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock, par value $0.0001 per share | |
Trading Symbol | UPH | |
Security Exchange Name | NYSE | |
Redeemable Warrants, exercisable for one share of Common Stock at an exercise price of $115.00 per share | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Redeemable Warrants, exercisable for one share of Common Stock at an exercise price of $115.00 per share | |
Trading Symbol | UPH.WS | |
Security Exchange Name | NYSE |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current Assets: | ||
Cash and cash equivalents | $ 13,333 | $ 15,557 |
Accounts receivable, net | 24,432 | 21,851 |
Inventories | 134 | 161 |
Due from related parties | 0 | 14 |
Prepaid expenses and other current assets | 3,263 | 2,991 |
Assets held for sale, current | 3,178 | 2,748 |
Total current assets | 44,340 | 43,322 |
Property and equipment, net | 14,324 | 14,069 |
Operating lease right-of-use assets | 6,644 | 7,213 |
Intangible assets, net | 30,216 | 31,362 |
Goodwill | 159,675 | 159,675 |
Equity investment | 21,200 | 21,200 |
Other assets | 474 | 438 |
Assets held for sale, noncurrent | 61,924 | 62,525 |
Total assets | 338,797 | 339,804 |
Current Liabilities: | ||
Accounts payable | 17,261 | 17,983 |
Accrued expenses | 41,099 | 38,763 |
Deferred revenue | 1,549 | 2,738 |
Due to related party | 166 | 229 |
Income taxes payable | 367 | 388 |
Related-party debt, current | 200 | 0 |
Lease liabilities, current | 5,317 | 5,475 |
Other liabilities, current | 433 | 74 |
Liabilities held for sale, current | 2,975 | 3,319 |
Total current liabilities | 69,367 | 68,969 |
Related-party debt, noncurrent | 31 | 281 |
Debt, noncurrent | 148,621 | 145,962 |
Deferred tax liabilities | 1,203 | 1,200 |
Derivative liability, noncurrent | 30 | 56 |
Warrant liabilities, noncurrent | 17 | 9 |
Lease liabilities, noncurrent | 8,050 | 8,741 |
Other liabilities, noncurrent | 201 | 662 |
Liabilities held for sale, noncurrent | 7,678 | 7,787 |
Total liabilities | 235,198 | 233,667 |
Commitments and Contingencies (Note 16) | ||
Stockholders’ Equity: | ||
Common stock | 2 | 2 |
Additional paid-in capital | 693,496 | 688,355 |
Treasury stock, at cost | (17,000) | (17,000) |
Accumulated deficit | (574,292) | (566,209) |
Total UpHealth, Inc., stockholders’ equity | 102,206 | 105,148 |
Noncontrolling interests | 1,393 | 989 |
Total stockholders’ equity | 103,599 | 106,137 |
Total liabilities and stockholders’ equity | $ 338,797 | $ 339,804 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Total revenues | $ 42,145 | $ 35,972 | |
Total costs of revenues | 19,469 | 21,981 | |
Gross profit | 22,676 | 13,991 | |
Operating expenses: | |||
Sales and marketing | 4,619 | 3,434 | |
Research and development | 1,285 | 1,758 | |
General and administrative | 11,009 | 11,467 | |
Depreciation and amortization | 1,611 | 5,236 | |
Stock-based compensation | 989 | 1,374 | |
Lease abandonment expenses | 0 | 75 | |
Goodwill and intangible asset impairment | 495 | 6,174 | |
Acquisition, integration, and transformation costs | 3,446 | 2,384 | |
Total operating expenses | 23,454 | 31,902 | |
Loss from operations | (778) | (17,911) | |
Other expense: | |||
Interest expense | (6,858) | (6,995) | |
Gain on fair value of derivative liability | 26 | 4,829 | |
Gain (loss) on fair value of warrant liabilities | (8) | 95 | |
Other expense, net, including interest income | (17) | (16) | |
Total other expense | (6,857) | (2,087) | |
Loss before income tax benefit | (7,635) | (19,998) | |
Income tax benefit | 0 | 2,293 | |
Net loss | (7,635) | (17,705) | |
Less: net income (loss) attributable to noncontrolling interests | 448 | (260) | |
Net loss attributable to UpHealth, Inc. | $ (8,083) | $ (17,445) | |
Net loss per share attributable to UpHealth, Inc.: | |||
Basic (in dollars per share) | $ (0.51) | $ (1.21) | |
Diluted (in dollars per share) | $ (0.51) | $ (1.21) | |
Weighted average shares outstanding: | |||
Basic (in shares) | [1] | 15,730 | 14,454 |
Diluted (in shares) | [1] | 15,730 | 14,454 |
Services | |||
Total revenues | $ 30,941 | $ 25,686 | |
Total costs of revenues | 13,744 | 15,758 | |
Licenses and subscriptions | |||
Total revenues | 1,936 | 1,781 | |
Total costs of revenues | 319 | 233 | |
Products | |||
Total revenues | 9,268 | 8,505 | |
Total costs of revenues | $ 5,406 | $ 5,990 | |
[1] Amounts as of March 31, 2022 and before that date differ from those published in our prior condensed consolidated financial statements as they were retrospectively adjusted as a result of the Reverse Stock Split (as described below in Note 1, Organization and Business |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) | Dec. 08, 2022 |
Income Statement [Abstract] | |
Reverse stock split | 0.1 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (7,635) | $ (17,705) |
Foreign currency translation adjustments, net of tax | 0 | (1,377) |
Comprehensive loss | (7,635) | (19,082) |
Comprehensive income (loss) attributable to noncontrolling interests | 448 | (260) |
Comprehensive loss attributable to UpHealth, Inc. | $ (8,083) | $ (18,822) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total UpHealth, Inc. Stockholders’ Equity | Noncontrolling Interests | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Balance at beginning of period (in shares) | [1] | 0 | |||||||
Balance at beginning of period (in shares) at Dec. 31, 2021 | [1] | 14,428 | |||||||
Balance at beginning of period at Dec. 31, 2021 | [1] | $ 333,843 | $ 1 | $ 665,474 | $ 0 | $ (343,209) | $ (3,802) | $ 318,464 | $ 15,379 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Equity award activity, net of shares withheld for taxes (in shares) | [1] | 37 | |||||||
Equity award activity, net of shares withheld for taxes | [1] | (68) | (68) | (68) | |||||
Stock-based compensation | 1,374 | 1,374 | 1,374 | ||||||
Net income (loss) | (17,705) | (17,445) | (17,445) | (260) | |||||
Foreign currency translation adjustments | (1,377) | (1,377) | (1,377) | ||||||
Balance at end of period (in shares) at Mar. 31, 2022 | [1] | 14,465 | |||||||
Balance at end of period (in shares) at Mar. 31, 2022 | [1] | 0 | |||||||
Balance at end of period at Mar. 31, 2022 | [1] | 316,067 | $ 1 | 666,780 | $ 0 | (360,654) | (5,179) | 300,948 | 15,119 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Balance at beginning of period (in shares) | [1] | 0 | |||||||
Balance at beginning of period (in shares) | 170 | ||||||||
Balance at beginning of period (in shares) at Dec. 31, 2022 | 15,054 | ||||||||
Balance at beginning of period at Dec. 31, 2022 | 106,137 | $ 2 | 688,355 | $ (17,000) | (566,209) | 0 | 105,148 | 989 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Equity award activity, net of shares withheld for taxes (in shares) | 80 | ||||||||
Equity award activity, net of shares withheld for taxes | (3) | (3) | (3) | ||||||
Issuance of common stock in connection with private placement, net of issuance costs (in shares) | 1,650 | ||||||||
Issuance of common stock in connection with private placement, net of issuance costs | 4,155 | 4,155 | 4,155 | ||||||
Stock-based compensation | 989 | 989 | 989 | ||||||
Net income (loss) | (7,635) | (8,083) | (8,083) | 448 | |||||
Distribution to noncontrolling interests | (44) | (44) | |||||||
Foreign currency translation adjustments | 0 | ||||||||
Balance at end of period (in shares) at Mar. 31, 2023 | 16,784 | ||||||||
Balance at end of period (in shares) at Mar. 31, 2023 | 170 | ||||||||
Balance at end of period at Mar. 31, 2023 | $ 103,599 | $ 2 | $ 693,496 | $ (17,000) | $ (574,292) | $ 0 | $ 102,206 | $ 1,393 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Balance at beginning of period (in shares) | 170 | ||||||||
[1] Amounts as of March 31, 2022 and before that date differ from those published in our prior condensed consolidated financial statements as they were retrospectively adjusted as a result of the Reverse Stock Split (as described below in Note 1, Organization and Business ). Specifically, the number of common shares outstanding during periods before the Reverse Stock Split are divided by the exchange ratio of 10:1, such that each ten shares of common stock were combined and reconstituted into one share of common stock effective December 8, 2022. |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Parenthetical) $ in Thousands | 3 Months Ended | |
Dec. 08, 2022 | Mar. 31, 2023 USD ($) | |
Statement of Stockholders' Equity [Abstract] | ||
Issuance costs | $ 348 | |
Reverse stock split | 0.1 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating activities: | ||
Net loss | $ (7,635) | $ (17,705) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 2,412 | 6,605 |
Amortization of debt issuance costs and discount on convertible debt | 2,659 | 3,485 |
Stock-based compensation | 989 | 1,374 |
Impairment of property and equipment, intangible assets and goodwill | 495 | 5,459 |
Provision for credit losses | (122) | (342) |
Loss (gain) on fair value of warrant liabilities | 8 | (95) |
Gain on fair value of derivative liability | (26) | (4,829) |
Deferred income taxes | 0 | (2,262) |
Amortization of operating lease right-of-use assets | 559 | 0 |
Changes in operating assets and liabilities, net of effects of acquisitions: | ||
Accounts receivable | (2,456) | 3,472 |
Inventories | 26 | (161) |
Prepaid expenses and other current assets | (632) | (577) |
Accounts payable and accrued expenses | 1,611 | 3,067 |
Operating lease liabilities | (587) | 0 |
Income taxes payable | (19) | 317 |
Deferred revenue | (1,188) | (907) |
Due to related parties | (49) | 62 |
Other current liabilities | (84) | (34) |
Net cash used in operating activities | (4,039) | (3,071) |
Investing activities: | ||
Purchases of property and equipment | (1,341) | (1,663) |
Net cash used in investing activities | (1,341) | (1,663) |
Financing activities: | ||
Proceeds from private placement, net of issuance costs | 4,152 | 0 |
Repayments of debt | 0 | (151) |
Payments of finance and capital lease obligations | (899) | |
Payments of finance and capital lease obligations | (800) | |
Net tax withholdings from share-based compensation | (3) | (68) |
Payments of amounts due to members | (50) | 0 |
Distribution to noncontrolling interest | (44) | 0 |
Net cash provided by (used in) provided by financing activities | 3,156 | (1,019) |
Effect of exchange rate changes on cash and cash equivalents | 0 | (394) |
Net decrease in cash and cash equivalents | (2,224) | (6,147) |
Cash and cash equivalents, beginning of period | 15,557 | 76,801 |
Cash and cash equivalents, end of period | 13,333 | 70,654 |
Supplemental cash flow information: | ||
Cash paid for interest | 2,283 | 235 |
Cash paid for income taxes | 19 | 521 |
Non-cash investing and financing activity: | ||
Property and equipment reclassified from other assets | 0 | 3,833 |
Property and equipment acquired through capital lease and vendor financing arrangements | 179 | 1,628 |
FIN 48 liability reclassified from deferred tax liabilities | 0 | 1,750 |
Reconciliation of cash and cash equivalents and restricted cash: | ||
Cash and cash equivalents | 13,333 | 52,036 |
Restricted cash | 0 | 18,618 |
Total cash and cash equivalents and restricted cash | $ 13,333 | $ 70,654 |
CONDENSED CONSOLIDATED STATEM_7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Statement of Cash Flows [Abstract] | |
Issuance costs | $ 348 |
Organization and Business
Organization and Business | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business | Organization and Business UpHealth, Inc. (“UpHealth,” “we,” “us,” “our,” “UpHealth,” or the “Company”) is the parent company of both UpHealth Holdings, Inc. (“UpHealth Holdings”) and Cloudbreak Health, LLC (“Cloudbreak”). GigCapital2, Inc. (“GigCapital2”), the Company’s predecessor, was incorporated in Delaware on March 6, 2019. GigCapital2 was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. The Company’s business combinations (the “Business Combinations”) were consummated on June 9, 2021, and in connection with the Business Combinations, GigCapital2 changed its corporate name to UpHealth, Inc. Deconsolidation of Glocal As a result of events which occurred during the three months ended September 30, 2022, we determined that a reconsideration event occurred in July 2022, which required us to reassess whether Glocal Healthcare Systems Private Limited (“Glocal”) was a Variable Interest Entity (“VIE”) and whether we continued to have a controlling financial interest in Glocal. Based on this assessment, we concluded that Glocal was a VIE, and furthermore, that we no longer have the ability to direct any activities of Glocal and no longer have a controlling financial interest. As a result, effective July 2022, we deconsolidated Glocal and recorded a $37.7 million loss on deconsolidation of equity investment in our unaudited condensed consolidated statements of operations, measured as the difference between the probability-weighted fair value of Glocal of $21.2 million and the carrying amount of Glocal’s assets and liabilities as of July 1, 2022. The probability-weighted fair value of Glocal, which is included in equity investment in our unaudited condensed consolidated balance sheets, incorporated scenarios where control of Glocal was gained and Glocal would continue as a going concern, control of Glocal was gained and Glocal would need to be liquidated, and control of Glocal was not gained and the equity investment in Glocal would be worthless. Further, we assessed the prospective accounting for our equity investment in Glocal. Since we no longer had the ability to exercise significant influence over operating and financial policies of Glocal, we concluded the investment should be accounted for utilizing the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 321, Investments - Equity Securities (“ASC 321”) measurement alternative, whereby the investment was measured at cost and will continue to be evaluated for any indicators of impairment. In addition, we derecognized $14.3 million of noncontrolling interests related to Glocal. If through legal processes we are able to obtain the ability to direct the activities of Glocal, and it is our intent to exercise all legal rights and remedies to achieve such a result, then we will further reassess the appropriate accounting treatment of our investment in Glocal. The financial results of Glocal for the three months ended March 31, 2022 are included in our unaudited condensed consolidated financial statements, and the financial position of Glocal as of March 31, 2023 and December 31, 2022 and the financial results of Glocal for the three months ended March 31, 2023 are not included in our unaudited condensed consolidated financial statements. The only transactions between us and Glocal subsequent to July 1, 2022 was the transfer by us during the three months ended September 30, 2022 of $5.1 million to a designated “Share Account” maintained with a leading bank in India in the name of Glocal for which our Chief Financial Officer is the sole authorized signatory. Reverse Stock Split On December 5, 2022 our stockholders approved an amendment to our Second Amended and Restated Certificate of Incorporation (the “Certificate of Amendment”) to effect a reverse split of the outstanding shares of our common stock, par value $0.0001 per share, at a specific ratio within a range of 4:1 to 10:1, with the specific ratio to be fixed within this range by our board of directors in its sole discretion without further stockholder approval (the “Reverse Stock Split”). Our board of directors fixed the Reverse Stock Split ratio at 10:1, such that each ten shares of common stock were combined and reconstituted into one share of common stock effective December 8, 2022. Except as noted, all share, stock option, restricted stock unit (“RSU”), and per share information throughout this Quarterly Report on Form 10-Q (this “Quarterly Report”) has been retroactively adjusted to reflect this Reverse Stock Split. Sale of Innovations Group On February 26, 2023, we agreed to sell 100% of the outstanding capital stock of our wholly owned subsidiary, Innovations Group, Inc. (“Innovations Group”), to Belmar MidCo, Inc., a Delaware corporation and a wholly owned subsidiary of Belmar Holdings, Inc., a Delaware corporation, a portfolio company of Webster Capital IV, L.P., a Delaware limited partnership, pursuant to a stock purchase agreement dated February 26, 2023. The sale closed on May 11, 2023 for gross proceeds of $56.0 million, subject to working capital, closing debt, and other adjustments. See Note 3, Assets and Liabilities Held for Sale , for further information. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation Our accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Our unaudited condensed consolidated financial statements, including the condensed notes thereto, are unaudited and exclude some of the disclosures required in audited financial statements. Our condensed consolidated balance sheet as of December 31, 2022 has been derived from our audited consolidated financial statements as of that date, but do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, our accompanying unaudited condensed consolidated financial statements contain all adjustments and eliminations, consisting only of normal recurring adjustments necessary for a fair presentation in conformity with U.S. GAAP. The results of operations for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023 or any future period. Our accompanying unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements for the year ended December 31, 2022. Our unaudited condensed consolidated financial statements include the accounts of UpHealth and its consolidated subsidiaries. As described in Note 1, Organization and Business , our Glocal subsidiary was deconsolidated effective July 2022. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of the unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts in the unaudited condensed consolidated financial statements and accompanying notes thereto. Significant estimates and assumptions made by management include the determination of: • The identification and reporting of variable interest entities (“VIEs”). We consolidate VIEs when we have variable interests and are the primary beneficiary. We continually evaluate our involvement with VIEs to determine when these criteria are met. • The valuation of equity investments, including our determination of the fair value of Glocal; • The valuation of assets acquired and liabilities assumed for business combinations, including intangible assets and goodwill; • The estimated economic lives and recoverability of intangible assets; • The valuations prepared in connection with the review of goodwill, intangible assets, and other long-lived assets for impairment: • The timing and amount of revenues to be recognized, including standalone selling price (“SSP”) of performance obligations for revenue contracts with multiple performance obligations; • The identification of and provision for uncollectible accounts receivable; • The capitalization and useful life of internal-use software development costs; • The valuation of derivatives and warrants; and • The recognition, measurement, and valuation of current and deferred income taxes and uncertain tax positions. Actual results could differ materially from those estimates. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable, the result of which forms the basis for making judgments about the carrying values of assets and liabilities. Allowance for Expected Credit Losses We closely monitor our accounts receivable balances and estimate the allowance for expected credit losses. The estimate is primarily based on historical collection experience and other factors, including those related to current market conditions and events. Credit losses associated with accounts receivable have not been material historically. Equity Investment As discussed in Deconsolidation of Equity Investment in Note 1, Organization and Business , as of March 31, 2023 and December 31, 2022, we held an interest in the privately-held equity securities of Glocal in which we did not have a controlling interest and were unable to exercise significant influence. Based on the terms of these privately-held securities, we concluded the investment should be accounted for utilizing the Accounting Standards Codification (“ASC”) 321 measurement alternative, whereby the investment was measured at cost and will continue to be evaluated for any indicators of impairment. Held for Sale Assets and liabilities to be disposed of by sale (“disposal groups”) are reclassified into assets and liabilities held for sale on our consolidated balance sheets. The reclassification occurs when an agreement to sell exists, or management has committed to a plan to sell the assets within one year. Disposal groups are measured at the lower of carrying value or fair value less costs to sell and are not depreciated or amortized. When the net realizable value of a disposal group increases during a period, a gain can be recognized to the extent that it does not increase the value of the disposal group beyond its original carrying value when the disposal group was reclassified as held for sale. The fair value of a disposal group, less any costs to sell, is assessed each reporting period it remains classified as held for sale and any remeasurement to the lower of carrying value or fair value less costs to sell is reported as an adjustment to the carrying value of the disposal group. New Accounting Pronouncements Not Yet Adopted In August 2020, the FASB issued Accounting Standards Update (“ASU”) 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40) . This ASU simplifies the accounting for convertible instruments by eliminating the conversion option separation model for convertible debt that can be settled in cash and by eliminating the measurement model for beneficial conversion features. Convertible instruments that continue to be subject to separation models are (1) those with conversion options that are required to be accounted for as bifurcated derivatives and (2) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid-in capital. This ASU also requires entities to use the if-converted method for all convertible instruments in the diluted earnings per share calculation and include the effect of share settlement for instruments that may be settled in cash or shares, except for certain liability-classified share-based payment awards. This ASU will be effective for us on January 1, 2024. Early adoption is permitted, but no earlier than the fiscal year beginning on January 1, 2021, including interim periods within that fiscal year. We are currently evaluating the effect of the adoption of this ASU will have on our unaudited condensed consolidated financial statements. Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , and subsequently issued several supplemental/clarifying ASUs (collectively, “ASC 326”). This ASU requires entities to estimate a lifetime expected credit loss for most financial assets, including trade and other receivables, other long-term financings including available for sale and held-to-maturity debt securities, and loans. Subsequently, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments-Credit Losses , which amended the scope of ASC 326 and clarified that receivables arising from operating leases are not within the scope of the standard and should continue to be accounted for in accordance with ASC 842. This ASU was effective for us on January 1, 2023, and the adoption did not have a material effect on our condensed consolidated financial statements. Reclassifications Certain prior period amounts have been reclassified to conform to the current year presentation as shown below: Three Months Ended March 31, 2022 As Reported Reclassifications As Adjusted Revenues: Services $ 25,686 $ — $ 25,686 Licenses and subscriptions 1,781 — 1,781 Products 8,505 — 8,505 Total revenues 35,972 — 35,972 Costs of revenues: Services 14,445 1,313 15,758 License and subscriptions 233 — 233 Products 5,990 — 5,990 Total costs of revenues 20,668 1,313 21,981 Gross profit 15,304 (1,313) 13,991 Operating expenses: Sales and marketing 2,726 708 3,434 Research and development 1,587 171 1,758 General and administrative 13,659 (2,192) 11,467 Depreciation and amortization 5,236 — 5,236 Stock-based compensation 1,374 — 1,374 Lease abandonment expenses 75 — 75 Goodwill and intangible asset impairment 6,174 — 6,174 Acquisition, integration, and transformation costs 2,384 — 2,384 Total operating expenses 33,215 (1,313) 31,902 Loss from operations (17,911) — (17,911) Other expense: Interest expense (6,995) — (6,995) Gain on fair value of derivative liability 4,829 — 4,829 Gain on fair value of warrant liabilities 95 — 95 Other expense, net, including interest income (16) — (16) Total other expense (2,087) — (2,087) Loss before income tax benefit (19,998) — (19,998) Income tax benefit 2,293 — 2,293 Net loss (17,705) — (17,705) Less: net loss attributable to noncontrolling interests (260) — (260) Net loss attributable to UpHealth, Inc. $ (17,445) $ — $ (17,445) |
Assets and Liabilities Held for
Assets and Liabilities Held for Sale | 3 Months Ended |
Mar. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets and Liabilities Held for Sale | Assets and Liabilities Held for Sale On February 26, 2023, we entered into an agreement to sell Innovations Group, one of our subsidiaries within our Services segment. The transaction closed on May 11, 2023. In connection with entering into this agreement, we concluded that the disposal group met the held for sale criteria and classified the assets and liabilities as held for sale as of March 31, 2023. In connection with the held for sale classification, we recorded a total loss of $0.5 million in the three months ended March 31, 2023 and $1.8 million in the three months ended December 31, 2022 on the remeasurement of the disposal group to its fair value, less cost to sell, which was recorded in goodwill and intangible asset impairment in the condensed consolidated statements of operations. Total assets and liabilities of the disposal group held for sale on the March 31, 2023 and December 31, 2022 condensed consolidated balance sheets consisted of the following: March 31, 2023 December 31, 2022 Accounts receivable, net $ 117 $ 78 Inventories 2,425 2,058 Prepaid expenses and other current assets 636 612 Property and equipment, net 4,602 4,602 Operating lease right-of-use assets 1,193 1,298 Intangible assets, net 23,063 23,063 Goodwill 33,561 35,353 Less: Impairment (495) (1,791) Total assets held for sale $ 65,102 $ 65,273 Accounts payable $ 978 $ 1,104 Accrued expenses 1,329 1,544 Deferred revenue 234 242 Lease liabilities, current 434 429 Deferred tax liabilities 6,918 6,918 Lease liabilities, noncurrent 760 869 Total liabilities held for sale $ 10,653 $ 11,106 |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues As discussed in Note 1, Organization and Business , we deconsolidated Glocal during the three months ended September 30, 2022; accordingly, the financial results of Glocal for the three months ended March 31, 2022 are included in our unaudited condensed consolidated financial statements, and the financial results of Glocal for the three months ended March 31, 2023 are not included in our unaudited condensed consolidated financial statements. Revenues by geography consisted of the following: Three months ended March 31, (In thousands) 2023 2022 Americas $ 42,145 $ 32,663 Asia — 3,309 Total revenues $ 42,145 $ 35,972 Our revenues are entirely derived from the healthcare industry. Revenues recognized over-time were approximately 75% and 71% of the total revenues during three months ended March 31, 2023 and 2022, respectively. Contract Assets There were no impairments of contract assets, consisting of unbilled receivables, during the three months ended March 31, 2023 and 2022. The change in contract assets was as follows: Three Months Ended March 31, (In thousands) 2023 2022 Unbilled receivables, beginning of period $ 694 $ 784 Reclassifications to billed receivables (694) (232) Revenues recognized in excess of period billings 668 285 Unbilled receivables, end of period $ 668 $ 837 Contract Liabilities The change in contract liabilities, consisting of deferred revenue, was as follows: Three Months Ended March 31, (In thousands) 2023 2022 Deferred revenue, beginning of period $ 2,738 $ 2,649 Revenues recognized from balances held at the beginning of the period (1,442) (1,581) Revenues deferred from period collections on unfulfilled performance obligations 253 664 Deferred revenue, end of period $ 1,549 $ 1,732 Revenues recognized ratably over time are generally billed in advance and includes software-as-a-service (“SaaS”) internet hosting, subscriptions, construction of digital hospitals and dispensaries, and related consulting, implementation, services support, and advisory services. Revenues recognized as delivered over time include professional services billed on a time and materials basis, and fixed fee professional services and training classes that are primarily billed, delivered, and recognized within the same reporting period. Approximately 3.4% of revenues recognized during the three months ended March 31, 2023, was from the deferred revenue balance existing as of December 31, 2022. Approximately 4% of revenues recognized during the three months ended March 31, 2022, was from the deferred revenue balance existing as of December 31, 2021. Remaining Performance Obligations Remaining performance obligations consisted of the following as of March 31, 2023: (In thousands) Remaining 2023 2024 Total Subscriptions $ 2,919 $ 1,104 $ 4,023 Program management and professional services 2,092 — 2,092 Total $ 5,011 $ 1,104 $ 6,115 |
Supplemental Financial Statemen
Supplemental Financial Statement Information | 3 Months Ended |
Mar. 31, 2023 | |
Payables and Accruals [Abstract] | |
Supplemental Financial Statement Information | Supplemental Financial Statement Information As discussed in Note 1, Organization and Business , we deconsolidated Glocal during the three months ended September 30, 2022; accordingly, the financial results of Glocal for the three months ended March 31, 2022 are included in our unaudited condensed consolidated financial statements, and the financial position of Glocal as of March 31, 2023 and December 31, 2022 and the financial results of Glocal for the three months ended March 31, 2023 are not included in our unaudited condensed consolidated financial statements. Property and equipment consisted of the following: (In thousands) March 31, 2023 December 31, 2022 Leasehold improvements $ 878 $ 868 Electrical and other equipment 21 21 Computer equipment, furniture and fixtures 16,413 16,222 Vehicles 305 302 Capitalized software development costs 6,925 4,404 Capitalized software development costs in progress 849 2,590 25,391 24,407 Accumulated depreciation and amortization (11,067) (10,338) Total property and equipment, net $ 14,324 $ 14,069 As discussed in Note 4, Assets and Liabilities Held for Sale , an additional $4.6 million of property and equipment are included in assets held for sale, noncurrent, in the condensed consolidated balance sheet as of both March 31, 2023 and December 31, 2022. Depreciation expense was $1.3 million and $1.5 million for the three months ended March 31, 2023 and 2022, respectively. Accrued expenses consisted of the following: (In thousands) March 31, 2023 December 31, 2022 Accrued professional fees $ 15,768 $ 14,245 Accrued products and licenses 17,820 17,820 Accrued interest on debt 2,553 741 Accrued payroll and bonuses 4,715 5,163 Other accruals 243 794 Total accrued expenses $ 41,099 $ 38,763 As discussed in Note 4, Assets and Liabilities Held for Sale , an additional $1.3 million and $1.5 million of accrued expenses are included in liabilities held for sale, current, in the condensed consolidated balance sheets as of March 31, 2023 and December 31, 2022, respectively. |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets As discussed in Note 1, Organization and Business , we deconsolidated Glocal during the three months ended September 30, 2022; accordingly, the financial results of Glocal for the three months ended March 31, 2022 are included in our unaudited condensed consolidated financial statements, and the financial position of Glocal as of March 31, 2023 and December 31, 2022 and the financial results of Glocal for the three months ended March 31, 2023 are not included in our unaudited condensed consolidated financial statements. The changes in carrying amounts of intangible assets consisted of the following as of March 31, 2023: (In thousands) Trade Names Technology and Intellectual Property Customer Relationships Total December 31, 2022 $ 11,995 $ 5,850 $ 13,517 $ 31,362 Amortization (358) (379) (409) (1,146) March 31, 2023 $ 11,637 $ 5,471 $ 13,108 $ 30,216 No impairment charge was recognized during the three months ended March 31, 2023. An impairment charge of $0.7 million was recognized during the three months ended March 31, 2022 in our Services segment. As discussed in Note 3, Assets and Liabilities Held for Sale , an additional $23.1 million of intangible assets (which includes trade names of $9.1 million, technology and intellectual property of $5.7 million, customer relationships of $7.8 million, and lease assets of $0.5 million) are included in assets held for sale, noncurrent, in the condensed consolidated balance sheets as of March 31, 2023 and December 31, 2022. The estimated useful lives of trade names are 3-10 years, the estimated useful lives of technology and intellectual property are 5-7 years, and the estimated useful life of customer relationships is 10 years. Amortization expense was $1.1 million and $5.1 million for the three months ended March 31, 2023 and 2022, respectively. The estimated amortization expense related to definite-lived intangible assets for the five succeeding years is as follows: (In thousands) Trade Name Amortization Technology and Intellectual Property Amortization Customer Relationships Amortization Total Remaining 2023 $ 1,058 $ 1,149 $ 1,212 $ 3,419 2024 1,416 1,532 1,616 4,564 2025 1,416 1,532 1,616 4,564 2026 1,416 896 1,616 3,928 2027 1,416 362 1,616 3,394 Thereafter 4,915 — 5,432 10,347 $ 11,637 $ 5,471 $ 13,108 $ 30,216 |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill As discussed in Note 3, Assets and Liabilities Held for Sale , an additional $33.1 million and $33.6 million of goodwill is included in assets held for sale, noncurrent, in the condensed consolidated balance sheets as of March 31, 2023 and December 31, 2022, respectively. In the three months ended March 31, 2023, we recorded a $0.5 million impairment charge on the remeasurement of the Innovations Group disposal group to the expected proceeds, less cost to sell, which was included in assets held for sale, noncurrent, in our condensed consolidated balance sheets. See Note 3, Assets and Liabilities Held for Sale , for further information. In the three months ended March 31, 2022, as a result of measurement period adjustments, we increased goodwill in the amount of $5.5 million, which was immediately impaired. The carrying amount of goodwill consisted of the following: (In thousands) March 31, 2023 December 31, 2022 Goodwill $ 159,675 $ 159,675 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt As discussed in Note 1, Organization and Business , we deconsolidated Glocal during the three months ended September 30, 2022; accordingly, the financial results of Glocal for the three months ended March 31, 2022 are included in our unaudited condensed consolidated financial statements, and the financial position of Glocal as of March 31, 2023 and December 31, 2022 and the financial results of Glocal for the three months ended March 31, 2023 are not included in our unaudited condensed consolidated financial statements. Debt consisted of the following: (In thousands) March 31, 2023 December 31, 2022 2025 Notes $ 67,500 $ 67,500 2026 Notes 115,000 115,000 Total debt 182,500 182,500 Less: unamortized original issue and debt discount (33,879) (36,538) Total debt, net of unamortized original issue and debt discount 148,621 145,962 Less: current portion of debt — — Noncurrent portion of debt $ 148,621 $ 145,962 2026 Unsecured Convertible Notes and Indenture On January 20, 2021, GigCapital2 entered into convertible note subscription agreements, each dated January 20, 2021 and amended on June 8, 2021, with certain institutional investors, pursuant to which GigCapital2 agreed to issue and sell unsecured convertible notes in a private placement to close immediately prior to the closing of the Business Combinations. On June 15, 2021, in connection with the closing of the Business Combinations, we entered into an indenture (the “2026 Indenture”) with Wilmington Trust, National Association, a national banking association, (the “Indenture Trustee”) in its capacity as trustee thereunder, in respect of the $160.0 million in aggregate principal amount of unsecured convertible notes due in 2026 (the “2026 Notes”) that were issued to certain institutional investors. The 2026 Notes bear interest at a rate of 6.25% per annum, payable semi-annually, and were convertible following the reverse split of our shares into approximately 1,502,347 shares of common stock at a conversion price of $106.50 in accordance with the terms of the 2026 Indenture, and will mature on June 15, 2026. The total proceeds received from the 2026 Notes were $151.9 million, net of debt issuance costs of $8.1 million. In accounting for the 2026 Notes, we bifurcated and accounted for the conversion option as a derivative measured at fair value on the issuance date in accordance with ASC 815, Derivatives and Hedging . The difference between the proceeds allocated to the 2026 Notes at issuance and the fair value of the conversion option was allocated to the host debt contract. As of March 31, 2023 and December 31, 2022 , the fair value of the derivative was $30 thousand and $0.1 million, respectively, all of which was included in derivative liability, noncurrent, in our unaudited condensed consolidated balance sheets. Total interest expense for the three months ended March 31, 2023 was $4.3 million, of which $1.8 million related to contractual interest expense, $2.2 million related to derivative accretion, and $0.3 million related to debt issuance costs amortization. Total interest expense for the three months ended March 31, 2022 was $6.0 million, of which $2.5 million related to contractual interest expense, $3.1 million related to derivative accretion, and $0.4 million related to debt issuance costs amortization. Total other income for the three months ended March 31, 2023 and 2022 included a $26 thousand gain and a $4.8 million gain on the fair value of the derivative liability, respectively. On August 12, 2022, concurrently and in connection with the issuance of our 2025 senior secured convertible notes and indenture (see below), Oppenheimer & Co. Inc. (“OpCo”) commenced a private offer to repurchase approximately $45.0 million in aggregate principal amount of our 2026 Notes (the “2026 Notes Repurchase”). In connection with the 2026 Notes Repurchase, OpCo entered into a note purchase agreement with each institutional investor pursuant to which OpCo agreed to purchase 2026 Notes from each investor, concurrently with each investor’s purchase of 2025 Notes in the 2025 Notes Offering (see below). At the closing, each investor had the ability to sell $2.0 million in principal amount of 2026 Notes at 100% of par value for each $3.0 million in principal amount of 2025 Notes purchased in the 2025 Notes Offering. Concurrently and in connection with the closing on August 18, 2022, OpCo purchased from each investor the principal amount of the 2026 Notes set forth in each investor’s note purchase agreement, pursuant to and in accordance with the terms thereof. Following the reverse split of shares, the remaining 2026 Notes are convertible into approximately 1,079,812 shares of common stock at a conversion price of $106.50 in accordance with the terms of the Indenture. 2025 Senior Secured Convertible Notes and Indenture On August 12, 2022, we entered into an indenture (the “2025 Indenture”) with the Indenture Trustee in its capacity as trustee thereunder, in respect of the $67.5 million in aggregate principal amount of a new series of variable rate convertible senior secured notes due December 15, 2025 (the “2025 Notes”) issued to holders of our 2026 Notes in a private placement transaction (“2025 Notes Offering”), raising approximately $22.5 million in gross cash proceeds, net of debt issuance costs of $2.2 million, after paying for a repurchase of $45.0 million of the 2026 Notes, which net proceeds were used in part to fully repay the Seller Notes (see below). The debt issuance costs consisted of cash paid in the amount of $1.5 million and the issuance of 115,000 shares of common stock, following the reverse stock split, with a value of $0.7 million. The 2025 Notes are convertible following the reverse split of our shares into 3,857,142 shares of our common stock at a conversion price, subject to the occurrence of certain corporate events, of $17.50 per share. The 2025 Notes are senior secured obligations of UpHealth, secured by substantially all of our assets and those of our domestic subsidiaries, and accrue interest at a rate equal to the daily secured overnight financing rate (“SOFR”) plus 9.0% per annum, with a minimum rate of 10.5% per annum, payable quarterly in arrears, for a quarterly rate of 12.21% for our December 15, 2022 interest payment date. The 2025 Notes will mature on December 15, 2025, unless earlier repurchased, redeemed or converted. Holders will have the right to convert their 2025 Notes at any time. Upon the occurrence of certain corporate events, holders of the 2025 Notes can require us to repurchase for cash all or part of their 2025 Notes in principal amounts of $1,000 or an integral multiple thereof at a repurchase price that will be equal to 105% of the principal amount of the 2025 Notes to be repurchased, plus accrued and unpaid interest thereon, if any. In the event that we sell assets with net proceeds in excess of $15.0 million, then it will make an offer to all holders of the 2025 Notes to repurchase the 2025 Notes for an aggregate amount of cash equal to 20.0% of the net proceeds of such asset sale, at a repurchase price per 2025 Note equal to 100.0% of the principal amount thereof, plus accrued and unpaid interest, if any. We may not otherwise seek to redeem the 2025 Notes prior to June 16, 2024. We will settle conversions solely in shares of its common stock, except for payments of cash in lieu of fractional shares. Total interest expense for the three months ended March 31, 2023 was $2.5 million, of which $2.3 million related to contractual interest expense and $0.2 million related to debt issuance costs amortization. In March 2023, the Indenture Trustee, in its capacity as calculation agent, notified us of the quarterly rate reset of 14.03% for our June 15, 2023 interest payment date. Related Party Debt One of our subsidiaries has notes payable to related parties totaling $0.2 million and $0.3 million as of March 31, 2023 and December 31, 2022. The notes bear interest at rates of 3.50% per annum. The notes are payable in eight quarterly installments starting from October 1, 2022, or upon a liquidity event, as defined in the note agreement. The accrued interest payable was zero as of both March 31, 2023 and December 31, 2022. Interest expense was $3 thousand and $10 thousand for the three months ended March 31, 2023 and 2022, respectively. Seller Notes As part of the purchase price consideration for several of UpHealth Holdings’ merger entities, we entered into seller notes payable to their former shareholders, which accrue interest at specific rates, per the respective merger agreements. On June 9, 2021, in connection with the closing of the Business Combination, we paid $88.1 million of the seller notes. In August 2021, we paid an additional $11.1 million of the seller notes and deferred the maturity date to September 2022. In August 2022, we paid the remaining $18.7 million of seller notes plus accrued interest of $1.9 million. As of both March 31, 2023 and December 31, 2022, the seller notes totaled zero. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments We estimate the fair value of our financial instruments using available market information and valuation methodologies we believe to be appropriate. As of March 31, 2023 and December 31, 2022, the fair values of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, and accrued expenses approximate their carrying values due to the short-term nature of these instruments. Additionally, the fair values of short-term and long-term debt instruments approximate their carrying values. The fair value hierarchy is as follows: Level 1 - Quoted (unadjusted) prices in active markets for identical assets or liabilities. Level 2 - Other observable inputs, either directly or indirectly, other than quoted prices included in Level 1, including: • Quoted prices for similar assets/liabilities in active markets; • Quoted prices for identical or similar assets/liabilities in non-active markets (e.g., few transactions, limited information, non-current prices, high variability over time); • Inputs other than quoted prices that are observable for the asset/liability (e.g., interest rates, yield curves, volatilities, default rates); and • Inputs that are derived principally from or corroborated by other observable market data. Level 3 - Unobservable inputs that cannot be corroborated by observable market data. The following tables present information about our financial assets and liabilities measured at fair value on are recurring basis: March 31, 2023 (In thousands) Level 1 Level 2 Level 3 Total Assets: Cash equivalents - money market funds $ 96 $ — $ — $ 96 $ 96 $ — $ — $ 96 Liabilities: Derivative liability $ — $ — $ 30 $ 30 Warrant liability — 17 — 17 $ — $ 17 $ 30 $ 47 December 31, 2022 (In thousands) Level 1 Level 2 Level 3 Total Assets: Cash equivalents - money market funds $ 1,681 $ — $ — $ 1,681 $ 1,681 $ — $ — $ 1,681 Liabilities: Derivative liability $ — $ — $ 56 $ 56 Warrant liability — 9 — 9 $ — $ 9 $ 56 $ 65 Money Market Funds As of March 31, 2023 and December 31, 2022, our cash equivalents consisted of money market funds which were classified as Level 1. We used observable prices in active markets in determining the classification of our money market funds as Level 1. There were no transfers between the hierarchy levels during the three months ended March 31, 2023 and the year ended December 31, 2022. Cash equivalents as of March 31, 2023 and December 31, 2022 were as follows: March 31, 2023 (In thousands) Amortized Cost Unrealized Gain Unrealized Loss Fair Value Cash equivalents: Money market funds $ 96 $ — $ — $ 96 Total cash equivalents $ 96 $ — $ — $ 96 December 31, 2022 (In thousands) Amortized Cost Unrealized Gain Unrealized Loss Fair Value Cash equivalents: Money market funds $ 1,681 $ — $ — $ 1,681 Total cash equivalents $ 1,681 $ — $ — $ 1,681 Derivative Liability As of March 31, 2023 and December 31, 2022, the fair value of the derivative was $30 thousand and $0.1 million, respectively, which was included in derivative liability, noncurrent in our unaudited condensed consolidated balance sheets. Total other income for the three months ended March 31, 2023 and 2022 included a gain of $26 thousand and $4.8 million, respectively, on the fair value of the derivative liability. The fair value of the derivative liabil ity is considered a Level 3 valuation and is determined using a Binomial Lattice Option Pricing Model. The significant assumptions used in the model were: March 31, 2023 December 31, 2022 Stock price $1.49 $1.63 Volatility 95.0% 95.0% Risk free rate 3.79% 4.17% Exercise price $106.50 $106.50 Expected life (in years) 3.19 3.44 Conversion periods 2-4 years 2-4 years Future share price $0.10-$303.10 $0.10-$405.60 2021 Private Placement Warrants and 2021 PIPE Warrants As of March 31, 2023, the fair value of the 2021 Private Placement Warrants (the “2021 Private Placement Warrants”) and the 2021 PIPE Warrants (the “2021 PIPE Warrants”) was determined to be $0.02 per warrant, totaling $11 thousand and $6 thousand respectively, and are included in warrant liabilities in our unaudited condensed consolidated balance sheets. As of December 31, 2022, the fair value of the 2021 Private Placement Warrants and the 2021 PIPE Warrants was determined to be $0.01 per warrant, totaling $6 thousand and $3 thousand respectively, and are included in warrant liabilities in our unaudited condensed consolidated balance sheets. During the three months ended March 31, 2023, we recorded a $5 thousand gain due to the fair value changes in the 2021 Private Placement Warrants and a $3 thousand due to fair value changes in the 2021 PIPE Warrants, both of which are included in gain in fair value of warrant liabilities in our unaudited condensed consolidated statements of operations. During the three months ended March 31, 2022, we recorded a $0.1 million gain due to the fair value changes in the 2021 Private Placement Warrants and a $33 thousand gain due to fair value changes in the 2021 PIPE Warrants, both of which are included in gain in fair value of warrant liabilities in our unaudited condensed consolidated statements of operations. There were no transfers between fair value levels during the three months ended March 31, 2023 and year ended December 31, 2022. |
Capital Structure
Capital Structure | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Capital Structure | Capital Structure 2023 Private Placement On March 9, 2023, we entered into a Securities Purchase Agreement, with a single institutional investor, pursuant to which, in a private placement (the “2023 Private Placement”), we agreed to issue and sell (i) 1,650,000 shares of our common stock, par value $0.0001 per share; (ii) warrants that are exercisable six months from the date of issuance and will have a term of five years from the initial exercise date to purchase up to an additional 3,000,000 shares of our common stock (the “Series A Warrants”); (iii) warrants that are exercisable six months from the date of issuance and will have a term of two years from the initial exercise date to purchase up to an additional 3,000,000 shares of our common stock (the “Series B Warrants” and, collectively with Series A Warrants, the “Common Stock Purchase Warrants”); and (iv) pre-funded warrants (the “Pre-Funded Warrants,” and together with the Common Stock Purchase Warrants, the “Private Placement Warrants”) to purchase an additional 1,350,000 shares of our common stock (all of such shares issuable upon exercise of the Warrants, the “Warrant Shares”). On March 13, 2023, we announced that we completed the closing of the 2023 Private Placement. The purchase price of each share of common stock sold in the 2023 Private Placement was $1.50, the exercise price of each Common Stock Purchase Warrants (as defined above) is $2.04, and the exercise price of each Pre- Funded Warrant is $0.0001 and the purchase price of each Pre-Funded Warrant was $1.4999. The aggregate gross proceeds to us from the 2023 Private Placement were approximately $4.5 million, before deducting $0.3 million of placement agent fees and other offering expenses. We intend to use the net proceeds from the offering for general corporate purposes, including working capital. Common Stock Reserved for Future Issuance The following table summarizes shares of common stock reserved for future issuance as of March 31, 2023 (recorded on a post-reverse split basis): (In thousands) Number of Shares Restricted stock units outstanding 1,342 Stock options outstanding 138 Shares issuable upon conversion of 2025 Notes 3,857 Shares issuable upon conversion of 2026 Notes 1,080 Shares issuable upon conversion of 2021 Public Warrants 1,725 Shares issuable upon conversion of 2021 Private Warrants 57 Shares issuable upon conversion of 2021 PIPE Warrants 29 Shares issuable upon conversion of the 2023 Private Placement Series A Warrants 3,000 Shares issuable upon conversion of the 2023 Private Placement Series B Warrants 3,000 Shares issuable upon conversion of the 2023 Private Placement Pre-Funded Warrants 1,350 Shares available for future grant under 2021 EIP 1,032 16,610 2015 Cloudbreak Incentive Plan The following table summarizes stock option activity under the Cloudbreak Plan (recorded on a post-reverse split basis): Number of Shares Weighted Average Exercise Price Per Share Outstanding as of December 31, 2022 138 $ 50.76 Options exercised — $ — Outstanding as of March 31, 2023 138 $ 50.76 2021 Equity Incentive Plan The following table summarizes our RSU activity under the 2021 EIP (recorded on a post-reverse split basis): Number of Shares Weighted Average Grant Date Fair Value Per Share Outstanding as of December 31, 2022 878 $ 6.61 RSUs granted 663 $ 2.03 RSUs vested and released (82) $ 16.09 RSUs forfeited (117) $ 7.11 Outstanding as of March 31, 2023 1,342 $ 3.73 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes As discussed in Note 1, Organization and Business , we deconsolidated Glocal during the three months ended September 30, 2022; accordingly, the financial results of Glocal for the three months ended March 31, 2022 are included in our unaudited condensed consolidated financial statements, and the financial position of Glocal as of March 31, 2023 and December 31, 2022 and the financial results of Glocal for the three months ended March 31, 2023 are not included in our unaudited condensed consolidated financial statements. Consistent with our conclusion as of December 31, 2022, we continue to believe that it is not more likely than not that the deferred tax assets will be realized and we therefore maintained a full valuation allowance against the deferred tax assets as of March 31, 2023. As a result, the estimated annual effective tax rate for 2023 is expected to be 0% because our forecasted losses are expected to generate no income tax benefit. Furthermore, there were no discrete tax items for the quarter ended March 31, 2023. The income tax benefit was zero and $2.3 million for the three months ended March 31, 2023 and 2022, respectively. The Internal Revenue Service (“IRS”) audited Thrasys’ 2008 and 2009 tax returns for the proper year of inclusion of approximately $15.0 million long-term capital gain on the sale of certain intellectual property rights. Thrasys originally reported the gain on its 2010 S Corporation tax return, matching the year of inclusion for financial accounting purposes. The corporate level tax was paid to California and Thrasys passed the gain through to its shareholders. The IRS has asserted that Thrasys owes C Corporation tax of approximately $5.0 million for 2008, or in the alternative, Thrasys owes C Corporation tax of approximately $5.0 million for 2009 as a built-in gain. In addition, Thrasys could be assessed additional California franchise tax of approximately $1.3 million. Additionally, if additional income taxes are imposed, interest will be charged at approximately 4% per year, compounded annually, resulting in potential interest of approximately $3.0 million. The IRS has not asked that penalties be imposed. The matter is currently pending before the U.S. Tax Court, Docket 11565-15. There are related tax cases for some of the shareholders for additional income taxes due if the gain is shifted to 2009. On December 4, 2018, the IRS filed a motion for summary judgment in Thrasys, Inc. v. Commissioner (T.C. Memo 2018-199); however, Thrasys prevailed, and the motion was denied. In January 2020, Thrasys filed a motion for summary judgment arguing that either the gain was properly reported in 2010 and all taxes have been paid or in the alternative it should have been taxable in 2009 with no built-in gains tax. In both cases, there would be no additional income tax due for 2008 or 2009. The IRS filed an objection to Thrasys’ motion. On March 3, 2021, the U.S. Tax Court, without consideration of the merits of the case, issued a very brief court order dismissing Thrasys’ motion. Had the motion been granted, the need for a trial would have been obviated. Thrasys intends to vigorously defend its position in the case and believes it will prevail if the case is taken to trial. We have accrued $0.2 million representing probable additional taxes and interest imposed, in other liabilities, current in the unaudited condensed consolidated balance sheets. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Basic earnings (loss) per share applicable to common stockholders is computed by dividing earnings applicable to common stockholders by the weighted average number of common shares outstanding. Diluted earnings (loss) per share assumes the conversion of any convertible securities using the treasury stock method or the if-converted method. Three Months Ended March 31, (In thousands, except per share data) 2023 2022 Numerator: Net income (loss) attributable to UpHealth, Inc. $ (8,083) $ (17,445) Denominator: Weighted average shares outstanding (1) 15,730 14,454 Diluted effect of stock options — — Diluted effect of RSUs — — Weighted average shares outstanding assuming dilution 15,730 14,454 Net income (loss) per share attributable to UpHealth, Inc.: Basic $ (0.51) $ (1.21) Diluted $ (0.51) $ (1.21) (1) The shares and earnings per share as of March 31, 2022 differ from those published in our prior condensed consolidated financial statements as they were retrospectively adjusted as a result of the Reverse Stock Split (as described in Note 1, Organization and Business ). For the three months ended March 31, 2023, the calculation of basic and dilutive earnings per share included the 1.35 million pre-funded warrants with an exercise price of $0.0001, as the shares are issuable for little consideration, and excluded outstanding warrants to purchase 1.8 million shares of common stock at $115.00 per share; 6.0 million Common Stock Purchase Warrants at $2.04 per share; 0.1 million of stock options; 1.3 million of RSUs; 2025 Notes convertible into 3.9 million shares of common stock at a conversion price, subject to the occurrence of certain corporate events, of $17.50 per share; and 2026 Notes, convertible into 1.1 million shares of common stock at $106.50 per share, because the effect would be anti-dilutive. For the three months ended March 31, 2022, the calculation of dilutive earnings per share excluded outstanding warrants to purchase 1.8 million shares of common stock at $115.00 per share; 23 thousand of stock options; 2026 Notes convertible into 1.5 million shares of common stock at $106.50 per |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions See Note 8, Debt , for related party debt. See Note 16, Commitments and Contingencies , for leases with related parties. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting Our business is organized into three operating business segments and one non-operating business segment: • Integrated Care Management—through our Thrasys subsidiary; • Virtual Care Infrastructure—through our Cloudbreak and Glocal subsidiaries (1) ; • Services—through our Innovations Group, BHS, and TTC subsidiaries; and • Corporate—through UpHealth and our UpHealth Holdings subsidiary. (1) As discussed in Note 1, Organization and Business , we deconsolidated Glocal during the three months ended September 30, 2022; accordingly, the financial results of Glocal for the three months ended March 31, 2022 are included in our unaudited condensed consolidated financial statements, and the financial results of Glocal as of March 31, 2023 and December 31, 2022 and for the three months ended March 31, 2023 are not included in our unaudited condensed consolidated financial statements. We evaluate performance based on several factors, of which Revenues, Gross Profit, and Total Assets are the primary financial measures: Revenues by segment consisted of the following: Three Months Ended March 31, In thousands 2023 2022 Integrated Care Management $ 3,873 $ 2,612 Virtual Care Infrastructure (1) 17,458 15,630 Services 20,814 17,730 Total revenues $ 42,145 $ 35,972 (1) As discussed in Note 1, Organization and Business , we deconsolidated Glocal during the three months ended September 30, 2022; accordingly, the financial results of Glocal for the three months ended March 31, 2022 are included in our unaudited condensed consolidated financial statements, and the financial results of Glocal for the three months ended March 31, 2023 are not included in our unaudited condensed consolidated financial statements. Gross profit by segment consisted of the following: Three Months Ended March 31, In thousands 2023 2022 Integrated Care Management $ 2,580 $ 1,638 Virtual Care Infrastructure (1) 10,185 6,501 Services 9,911 5,852 Total gross profit $ 22,676 $ 13,991 (1) As discussed in Note 1, Organization and Business , we deconsolidated Glocal during the three months ended September 30, 2022; accordingly, the financial results of Glocal for the three months ended March 31, 2022 are included in our unaudited condensed consolidated financial statements, and the financial results of Glocal for the three months ended March 31, 2023 are not included in our unaudited condensed consolidated financial statements. Total assets by segment consisted of the following: In thousands March 31, 2023 December 31, 2022 Integrated Care Management $ 45,132 44,776 Virtual Care Infrastructure (1) 140,311 140,776 Services 126,142 124,980 Corporate 27,212 29,272 Total assets $ 338,797 $ 339,804 (1) As discussed in Note 1, Organization and Business , we deconsolidated Glocal during the three months ended September 30, 2022; accordingly, the financial position of Glocal as of March 31, 2023 and December 31, 2022 and for the three months ended March 31, 2023 are not included in our unaudited condensed consolidated financial statements. Total assets by geography consisted of the following: In thousands March 31, 2023 December 31, 2022 Americas $ 317,597 339,804 Asia (1) 21,200 — Total assets $ 338,797 $ 339,804 (1) As discussed in Note 1, Organization and Business |
Leases
Leases | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases The components of lease expense consisted of the following for the three months ended March 31, 2023: Three Months Ended March 31, 2023 In thousands Third Party Related Party Total Finance lease costs: Amortization of right-of-use assets $ 885 $ — $ 885 Interest on lease liabilities 88 — 88 Operating lease costs 716 98 814 Short-term lease costs 27 67 94 Variable lease costs 144 — 144 Sublease income (129) — (129) Total lease costs $ 1,731 $ 165 $ 1,896 Lease-related assets and liabilities recorded on the consolidated balance sheet are as follows: March 31, 2023 December 31, 2022 In thousands Third Party Related Party Total Third Party Related Party Total Assets Finance lease right-of-use assets (included in property and equipment, net) $ 5,546 $ — $ 5,546 $ 5,916 $ — $ 5,916 Operating lease right-of-use assets 5,331 1,313 6,644 5,819 1,394 7,213 Total leased assets $ 10,877 $ 1,313 $ 12,190 $ 11,735 $ 1,394 $ 13,129 Liabilities Lease liabilities, current: Finance lease liabilities $ 2,936 $ — $ 2,936 $ 3,023 $ — $ 3,023 Operating lease liabilities 2,045 336 2,381 2,130 322 2,452 Lease liabilities, current 4,981 336 5,317 5,153 322 5,475 Lease liabilities, noncurrent: Finance lease liabilities 2,813 — 2,813 2,976 — 2,976 Operating lease liabilities 4,235 1,002 5,237 4,672 1,093 5,765 Lease liabilities, noncurrent 7,048 1,002 8,050 7,648 1,093 8,741 Total leased liabilities $ 12,029 $ 1,338 $ 13,367 $ 12,801 $ 1,415 $ 14,216 Accumulated amortization related to the finance lease assets was $4.8 million and $3.9 million as of March 31, 2023 and December 31, 2022, respectively. The following table summarizes our lease term and discount rate assumptions as of March 31, 2023: March 31, 2023 Third Party Related Party Total Weighted-average remaining lease term (years): Finance leases 1.94 — 1.94 Operating leases 3.47 3.67 3.50 Weighted-average discount rate: Finance leases 6.3% — 6.3% Operating leases 6.8% 5.3% 6.5% Undiscounted future minimum lease payments (displayed by year and in the aggregate) under noncancelable operating leases with terms of more than one year, as of March 31, 2023, have been reconciled to the total operating and finance lease liabilities recognized on the condensed consolidated balance sheets as of March 31, 2023 as follows: March 31, 2023 Finance Leases Operating Leases In thousands Third Party Related Party Total Third Party Related Party Total Remaining 2023 $ 2,495 $ — $ 2,495 $ 1,922 $ 291 $ 2,213 2024 2,526 — 2,526 1,930 421 2,351 2025 1,060 — 1,060 1,535 427 1,962 2026 — — — 1,029 323 1,352 2027 — — — 457 — 457 Thereafter — — — 380 — 380 Total lease payments 6,081 — 6,081 7,253 1,462 8,715 Less: Interest 332 — 332 973 124 1,097 Present value of lease liabilities $ 5,749 $ — $ 5,749 $ 6,280 $ 1,338 $ 7,618 Prior to the adoption of ASC 2016-02, Leases , the following was disclosed in our Quarterly Report on Form 10-Q for the three months ended March 31, 2022: Total rent expense under related party and third-party agreements was approximately $0.2 million and $1.2 million, respectively, for the three months ended March 31, 2022. Total sublease revenue under third-party agreements was approximately $0.2 million for the three months ended March 31, 2022. During the three months ended March 31, 2022, we recorded additional lease abandonment expense totaling $0.1 million related to a termination fee we paid to exit an office lease. |
Leases | Leases The components of lease expense consisted of the following for the three months ended March 31, 2023: Three Months Ended March 31, 2023 In thousands Third Party Related Party Total Finance lease costs: Amortization of right-of-use assets $ 885 $ — $ 885 Interest on lease liabilities 88 — 88 Operating lease costs 716 98 814 Short-term lease costs 27 67 94 Variable lease costs 144 — 144 Sublease income (129) — (129) Total lease costs $ 1,731 $ 165 $ 1,896 Lease-related assets and liabilities recorded on the consolidated balance sheet are as follows: March 31, 2023 December 31, 2022 In thousands Third Party Related Party Total Third Party Related Party Total Assets Finance lease right-of-use assets (included in property and equipment, net) $ 5,546 $ — $ 5,546 $ 5,916 $ — $ 5,916 Operating lease right-of-use assets 5,331 1,313 6,644 5,819 1,394 7,213 Total leased assets $ 10,877 $ 1,313 $ 12,190 $ 11,735 $ 1,394 $ 13,129 Liabilities Lease liabilities, current: Finance lease liabilities $ 2,936 $ — $ 2,936 $ 3,023 $ — $ 3,023 Operating lease liabilities 2,045 336 2,381 2,130 322 2,452 Lease liabilities, current 4,981 336 5,317 5,153 322 5,475 Lease liabilities, noncurrent: Finance lease liabilities 2,813 — 2,813 2,976 — 2,976 Operating lease liabilities 4,235 1,002 5,237 4,672 1,093 5,765 Lease liabilities, noncurrent 7,048 1,002 8,050 7,648 1,093 8,741 Total leased liabilities $ 12,029 $ 1,338 $ 13,367 $ 12,801 $ 1,415 $ 14,216 Accumulated amortization related to the finance lease assets was $4.8 million and $3.9 million as of March 31, 2023 and December 31, 2022, respectively. The following table summarizes our lease term and discount rate assumptions as of March 31, 2023: March 31, 2023 Third Party Related Party Total Weighted-average remaining lease term (years): Finance leases 1.94 — 1.94 Operating leases 3.47 3.67 3.50 Weighted-average discount rate: Finance leases 6.3% — 6.3% Operating leases 6.8% 5.3% 6.5% Undiscounted future minimum lease payments (displayed by year and in the aggregate) under noncancelable operating leases with terms of more than one year, as of March 31, 2023, have been reconciled to the total operating and finance lease liabilities recognized on the condensed consolidated balance sheets as of March 31, 2023 as follows: March 31, 2023 Finance Leases Operating Leases In thousands Third Party Related Party Total Third Party Related Party Total Remaining 2023 $ 2,495 $ — $ 2,495 $ 1,922 $ 291 $ 2,213 2024 2,526 — 2,526 1,930 421 2,351 2025 1,060 — 1,060 1,535 427 1,962 2026 — — — 1,029 323 1,352 2027 — — — 457 — 457 Thereafter — — — 380 — 380 Total lease payments 6,081 — 6,081 7,253 1,462 8,715 Less: Interest 332 — 332 973 124 1,097 Present value of lease liabilities $ 5,749 $ — $ 5,749 $ 6,280 $ 1,338 $ 7,618 Prior to the adoption of ASC 2016-02, Leases , the following was disclosed in our Quarterly Report on Form 10-Q for the three months ended March 31, 2022: Total rent expense under related party and third-party agreements was approximately $0.2 million and $1.2 million, respectively, for the three months ended March 31, 2022. Total sublease revenue under third-party agreements was approximately $0.2 million for the three months ended March 31, 2022. During the three months ended March 31, 2022, we recorded additional lease abandonment expense totaling $0.1 million related to a termination fee we paid to exit an office lease. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments Operating leases See Note 15, Leases , for commitments related to our operating leases. Contingencies From time to time, we may be subjected to claims or lawsuits which arise in the ordinary course of business, including the previously disclosed tax matter (see Note 11, Income Taxes, for further information) and matters described below. Estimates for resolution of legal and other contingencies are accrued when losses are probable and reasonably estimable in accordance with ASC 450, Contingencies. Except as set forth below, in the opinion of management, after consulting with legal counsel, none of these other claims are currently expected to have a material adverse effect on our condensed consolidated results of operations, financial position or cash flows. Advisory Services Agreement Dispute We are in a services agreement dispute with a third-party advisory firm for fees due under the services agreement. The advisory firm claims $31.0 million, plus interest, is owed in fees. Based on consultation with legal counsel, we previously proposed a settlement in the amount of $8.0 million, which has been accrued for as of March 31, 2023 and December 31, 2022, and is included in accrued expenses in our unaudited condensed consolidated balance sheets. The amount of the ultimate loss may range from $8.0 million to $26.3 million. Indemnification Certain of our agreements require us to indemnify our customers from any claim or finding of intellectual property infringements, as well as from any losses incurred relating to breach of representations, failure to perform, or specific events as outlined within the particular contract. We have not received any claims or estimated the maximum potential amount of indemnification liability under these agreements and have recorded no liabilities for these agreements. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Management has determined that no material events or transactions have occurred subsequent to the balance sheet date, other than those events noted below, that require disclosure in our unaudited condensed consolidated financial statements. Sale of Innovations Group On February 26, 2023, we agreed to sell 100% of the outstanding capital stock of our wholly owned subsidiary, Innovations Group, Inc. (“Innovations Group”), to Belmar MidCo, Inc., a Delaware corporation and a wholly owned subsidiary of Belmar Holdings, Inc., a Delaware corporation, a portfolio company of Webster Capital IV, L.P., a Delaware limited partnership, pursuant to a stock purchase agreement dated February 26, 2023. The sale closed on May 11, 2023 for gross proceeds of $56.0 million, subject to working capital, closing debt, and other adjustments. See Note 3, Assets and Liabilities Held for Sale , for further information. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Principles of Consolidation Our accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Our unaudited condensed consolidated financial statements, including the condensed notes thereto, are unaudited and exclude some of the disclosures required in audited financial statements. Our condensed consolidated balance sheet as of December 31, 2022 has been derived from our audited consolidated financial statements as of that date, but do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. |
Principles of Consolidation | Our unaudited condensed consolidated financial statements include the accounts of UpHealth and its consolidated subsidiaries. As described in Note 1, Organization and Business , our Glocal subsidiary was deconsolidated effective July 2022. |
Use of Estimates | Use of Estimates The preparation of the unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts in the unaudited condensed consolidated financial statements and accompanying notes thereto. Significant estimates and assumptions made by management include the determination of: • The identification and reporting of variable interest entities (“VIEs”). We consolidate VIEs when we have variable interests and are the primary beneficiary. We continually evaluate our involvement with VIEs to determine when these criteria are met. • The valuation of equity investments, including our determination of the fair value of Glocal; • The valuation of assets acquired and liabilities assumed for business combinations, including intangible assets and goodwill; • The estimated economic lives and recoverability of intangible assets; • The valuations prepared in connection with the review of goodwill, intangible assets, and other long-lived assets for impairment: • The timing and amount of revenues to be recognized, including standalone selling price (“SSP”) of performance obligations for revenue contracts with multiple performance obligations; • The identification of and provision for uncollectible accounts receivable; • The capitalization and useful life of internal-use software development costs; • The valuation of derivatives and warrants; and • The recognition, measurement, and valuation of current and deferred income taxes and uncertain tax positions. Actual results could differ materially from those estimates. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable, the result of which forms the basis for making judgments about the carrying values of assets and liabilities. |
Allowance for Expected Credit Losses | Allowance for Expected Credit Losses We closely monitor our accounts receivable balances and estimate the allowance for expected credit losses. The estimate is primarily based on historical collection experience and other factors, including those related to current market conditions and events. Credit losses associated with accounts receivable have not been material historically. |
Equity Investment | Equity Investment As discussed in Deconsolidation of Equity Investment in Note 1, Organization and Business , as of March 31, 2023 and December 31, 2022, we held an interest in the privately-held equity securities of Glocal in which we did not have a controlling interest and were unable to exercise significant influence. Based on the terms of these privately-held securities, we concluded the investment should be accounted for utilizing the Accounting Standards Codification (“ASC”) 321 measurement alternative, whereby the investment was measured at cost and will continue to be evaluated for any indicators of impairment. |
Held for Sale | Held for Sale Assets and liabilities to be disposed of by sale (“disposal groups”) are reclassified into assets and liabilities held for sale on our consolidated balance sheets. The reclassification occurs when an agreement to sell exists, or management has committed to a plan to sell the assets within one year. Disposal groups are measured at the lower of carrying value or fair value less costs to sell and are not depreciated or amortized. When the net realizable value of a disposal group increases during a period, a gain can be recognized to the extent that it does not increase the value of the disposal group beyond its original carrying value when the disposal group was reclassified as held for sale. The fair value of a disposal group, less any costs to sell, is assessed each reporting period it remains classified as held for sale and any remeasurement to the lower of carrying value or fair value less costs to sell is reported as an adjustment to the carrying value of the disposal group. |
New Accounting Pronouncements Not Yet Adopted/Recently Adopted Accounting Pronouncements | New Accounting Pronouncements Not Yet Adopted In August 2020, the FASB issued Accounting Standards Update (“ASU”) 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40) . This ASU simplifies the accounting for convertible instruments by eliminating the conversion option separation model for convertible debt that can be settled in cash and by eliminating the measurement model for beneficial conversion features. Convertible instruments that continue to be subject to separation models are (1) those with conversion options that are required to be accounted for as bifurcated derivatives and (2) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid-in capital. This ASU also requires entities to use the if-converted method for all convertible instruments in the diluted earnings per share calculation and include the effect of share settlement for instruments that may be settled in cash or shares, except for certain liability-classified share-based payment awards. This ASU will be effective for us on January 1, 2024. Early adoption is permitted, but no earlier than the fiscal year beginning on January 1, 2021, including interim periods within that fiscal year. We are currently evaluating the effect of the adoption of this ASU will have on our unaudited condensed consolidated financial statements. Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , and subsequently issued several supplemental/clarifying ASUs (collectively, “ASC 326”). This ASU requires entities to estimate a lifetime expected credit loss for most financial assets, including trade and other receivables, other long-term financings including available for sale and held-to-maturity debt securities, and loans. Subsequently, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments-Credit Losses , which amended the scope of ASC 326 and clarified that receivables arising from operating leases are not within the scope of the standard and should continue to be accounted for in accordance with ASC 842. This ASU was effective for us on January 1, 2023, and the adoption did not have a material effect on our condensed consolidated financial statements. |
Fair Value of Financial Instruments | The fair value hierarchy is as follows: Level 1 - Quoted (unadjusted) prices in active markets for identical assets or liabilities. Level 2 - Other observable inputs, either directly or indirectly, other than quoted prices included in Level 1, including: • Quoted prices for similar assets/liabilities in active markets; • Quoted prices for identical or similar assets/liabilities in non-active markets (e.g., few transactions, limited information, non-current prices, high variability over time); • Inputs other than quoted prices that are observable for the asset/liability (e.g., interest rates, yield curves, volatilities, default rates); and • Inputs that are derived principally from or corroborated by other observable market data. Level 3 - Unobservable inputs that cannot be corroborated by observable market data. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments | Certain prior period amounts have been reclassified to conform to the current year presentation as shown below: Three Months Ended March 31, 2022 As Reported Reclassifications As Adjusted Revenues: Services $ 25,686 $ — $ 25,686 Licenses and subscriptions 1,781 — 1,781 Products 8,505 — 8,505 Total revenues 35,972 — 35,972 Costs of revenues: Services 14,445 1,313 15,758 License and subscriptions 233 — 233 Products 5,990 — 5,990 Total costs of revenues 20,668 1,313 21,981 Gross profit 15,304 (1,313) 13,991 Operating expenses: Sales and marketing 2,726 708 3,434 Research and development 1,587 171 1,758 General and administrative 13,659 (2,192) 11,467 Depreciation and amortization 5,236 — 5,236 Stock-based compensation 1,374 — 1,374 Lease abandonment expenses 75 — 75 Goodwill and intangible asset impairment 6,174 — 6,174 Acquisition, integration, and transformation costs 2,384 — 2,384 Total operating expenses 33,215 (1,313) 31,902 Loss from operations (17,911) — (17,911) Other expense: Interest expense (6,995) — (6,995) Gain on fair value of derivative liability 4,829 — 4,829 Gain on fair value of warrant liabilities 95 — 95 Other expense, net, including interest income (16) — (16) Total other expense (2,087) — (2,087) Loss before income tax benefit (19,998) — (19,998) Income tax benefit 2,293 — 2,293 Net loss (17,705) — (17,705) Less: net loss attributable to noncontrolling interests (260) — (260) Net loss attributable to UpHealth, Inc. $ (17,445) $ — $ (17,445) |
Assets and Liabilities Held f_2
Assets and Liabilities Held for Sale (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Total Assets and Liabilities of the Disposal Group Held For Sale | Total assets and liabilities of the disposal group held for sale on the March 31, 2023 and December 31, 2022 condensed consolidated balance sheets consisted of the following: March 31, 2023 December 31, 2022 Accounts receivable, net $ 117 $ 78 Inventories 2,425 2,058 Prepaid expenses and other current assets 636 612 Property and equipment, net 4,602 4,602 Operating lease right-of-use assets 1,193 1,298 Intangible assets, net 23,063 23,063 Goodwill 33,561 35,353 Less: Impairment (495) (1,791) Total assets held for sale $ 65,102 $ 65,273 Accounts payable $ 978 $ 1,104 Accrued expenses 1,329 1,544 Deferred revenue 234 242 Lease liabilities, current 434 429 Deferred tax liabilities 6,918 6,918 Lease liabilities, noncurrent 760 869 Total liabilities held for sale $ 10,653 $ 11,106 |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenues | Revenues by geography consisted of the following: Three months ended March 31, (In thousands) 2023 2022 Americas $ 42,145 $ 32,663 Asia — 3,309 Total revenues $ 42,145 $ 35,972 |
Schedule of Change in Contract Assets and Contract Liabilities | The change in contract assets was as follows: Three Months Ended March 31, (In thousands) 2023 2022 Unbilled receivables, beginning of period $ 694 $ 784 Reclassifications to billed receivables (694) (232) Revenues recognized in excess of period billings 668 285 Unbilled receivables, end of period $ 668 $ 837 Three Months Ended March 31, (In thousands) 2023 2022 Deferred revenue, beginning of period $ 2,738 $ 2,649 Revenues recognized from balances held at the beginning of the period (1,442) (1,581) Revenues deferred from period collections on unfulfilled performance obligations 253 664 Deferred revenue, end of period $ 1,549 $ 1,732 |
Schedule of Remaining Performance Obligations | Remaining performance obligations consisted of the following as of March 31, 2023: (In thousands) Remaining 2023 2024 Total Subscriptions $ 2,919 $ 1,104 $ 4,023 Program management and professional services 2,092 — 2,092 Total $ 5,011 $ 1,104 $ 6,115 |
Supplemental Financial Statem_2
Supplemental Financial Statement Information (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following: (In thousands) March 31, 2023 December 31, 2022 Leasehold improvements $ 878 $ 868 Electrical and other equipment 21 21 Computer equipment, furniture and fixtures 16,413 16,222 Vehicles 305 302 Capitalized software development costs 6,925 4,404 Capitalized software development costs in progress 849 2,590 25,391 24,407 Accumulated depreciation and amortization (11,067) (10,338) Total property and equipment, net $ 14,324 $ 14,069 |
Schedule of Accrued Liabilities | Accrued expenses consisted of the following: (In thousands) March 31, 2023 December 31, 2022 Accrued professional fees $ 15,768 $ 14,245 Accrued products and licenses 17,820 17,820 Accrued interest on debt 2,553 741 Accrued payroll and bonuses 4,715 5,163 Other accruals 243 794 Total accrued expenses $ 41,099 $ 38,763 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Amounts of Intangible Assets | The changes in carrying amounts of intangible assets consisted of the following as of March 31, 2023: (In thousands) Trade Names Technology and Intellectual Property Customer Relationships Total December 31, 2022 $ 11,995 $ 5,850 $ 13,517 $ 31,362 Amortization (358) (379) (409) (1,146) March 31, 2023 $ 11,637 $ 5,471 $ 13,108 $ 30,216 |
Schedule of Estimated Amortization Expense Related to Definite-Lived Intangible Assets | The estimated amortization expense related to definite-lived intangible assets for the five succeeding years is as follows: (In thousands) Trade Name Amortization Technology and Intellectual Property Amortization Customer Relationships Amortization Total Remaining 2023 $ 1,058 $ 1,149 $ 1,212 $ 3,419 2024 1,416 1,532 1,616 4,564 2025 1,416 1,532 1,616 4,564 2026 1,416 896 1,616 3,928 2027 1,416 362 1,616 3,394 Thereafter 4,915 — 5,432 10,347 $ 11,637 $ 5,471 $ 13,108 $ 30,216 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in the Carrying Amount of Goodwill | The carrying amount of goodwill consisted of the following: (In thousands) March 31, 2023 December 31, 2022 Goodwill $ 159,675 $ 159,675 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Debt consisted of the following: (In thousands) March 31, 2023 December 31, 2022 2025 Notes $ 67,500 $ 67,500 2026 Notes 115,000 115,000 Total debt 182,500 182,500 Less: unamortized original issue and debt discount (33,879) (36,538) Total debt, net of unamortized original issue and debt discount 148,621 145,962 Less: current portion of debt — — Noncurrent portion of debt $ 148,621 $ 145,962 |
Fair Value of Financial Measure
Fair Value of Financial Measurements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present information about our financial assets and liabilities measured at fair value on are recurring basis: March 31, 2023 (In thousands) Level 1 Level 2 Level 3 Total Assets: Cash equivalents - money market funds $ 96 $ — $ — $ 96 $ 96 $ — $ — $ 96 Liabilities: Derivative liability $ — $ — $ 30 $ 30 Warrant liability — 17 — 17 $ — $ 17 $ 30 $ 47 December 31, 2022 (In thousands) Level 1 Level 2 Level 3 Total Assets: Cash equivalents - money market funds $ 1,681 $ — $ — $ 1,681 $ 1,681 $ — $ — $ 1,681 Liabilities: Derivative liability $ — $ — $ 56 $ 56 Warrant liability — 9 — 9 $ — $ 9 $ 56 $ 65 |
Schedule of Cash and Cash Equivalents | Cash equivalents as of March 31, 2023 and December 31, 2022 were as follows: March 31, 2023 (In thousands) Amortized Cost Unrealized Gain Unrealized Loss Fair Value Cash equivalents: Money market funds $ 96 $ — $ — $ 96 Total cash equivalents $ 96 $ — $ — $ 96 December 31, 2022 (In thousands) Amortized Cost Unrealized Gain Unrealized Loss Fair Value Cash equivalents: Money market funds $ 1,681 $ — $ — $ 1,681 Total cash equivalents $ 1,681 $ — $ — $ 1,681 |
Schedule of Fair Value Significant Assumptions | The fair value of the derivative liabil ity is considered a Level 3 valuation and is determined using a Binomial Lattice Option Pricing Model. The significant assumptions used in the model were: March 31, 2023 December 31, 2022 Stock price $1.49 $1.63 Volatility 95.0% 95.0% Risk free rate 3.79% 4.17% Exercise price $106.50 $106.50 Expected life (in years) 3.19 3.44 Conversion periods 2-4 years 2-4 years Future share price $0.10-$303.10 $0.10-$405.60 |
Capital Structure (Tables)
Capital Structure (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Schedule of Common Stock Reserved for Future Issuance | The following table summarizes shares of common stock reserved for future issuance as of March 31, 2023 (recorded on a post-reverse split basis): (In thousands) Number of Shares Restricted stock units outstanding 1,342 Stock options outstanding 138 Shares issuable upon conversion of 2025 Notes 3,857 Shares issuable upon conversion of 2026 Notes 1,080 Shares issuable upon conversion of 2021 Public Warrants 1,725 Shares issuable upon conversion of 2021 Private Warrants 57 Shares issuable upon conversion of 2021 PIPE Warrants 29 Shares issuable upon conversion of the 2023 Private Placement Series A Warrants 3,000 Shares issuable upon conversion of the 2023 Private Placement Series B Warrants 3,000 Shares issuable upon conversion of the 2023 Private Placement Pre-Funded Warrants 1,350 Shares available for future grant under 2021 EIP 1,032 16,610 |
Summary of Stock Option Activity | The following table summarizes stock option activity under the Cloudbreak Plan (recorded on a post-reverse split basis): Number of Shares Weighted Average Exercise Price Per Share Outstanding as of December 31, 2022 138 $ 50.76 Options exercised — $ — Outstanding as of March 31, 2023 138 $ 50.76 |
Summary of RSU Activity | The following table summarizes our RSU activity under the 2021 EIP (recorded on a post-reverse split basis): Number of Shares Weighted Average Grant Date Fair Value Per Share Outstanding as of December 31, 2022 878 $ 6.61 RSUs granted 663 $ 2.03 RSUs vested and released (82) $ 16.09 RSUs forfeited (117) $ 7.11 Outstanding as of March 31, 2023 1,342 $ 3.73 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings (Loss) Per Share | Three Months Ended March 31, (In thousands, except per share data) 2023 2022 Numerator: Net income (loss) attributable to UpHealth, Inc. $ (8,083) $ (17,445) Denominator: Weighted average shares outstanding (1) 15,730 14,454 Diluted effect of stock options — — Diluted effect of RSUs — — Weighted average shares outstanding assuming dilution 15,730 14,454 Net income (loss) per share attributable to UpHealth, Inc.: Basic $ (0.51) $ (1.21) Diluted $ (0.51) $ (1.21) (1) The shares and earnings per share as of March 31, 2022 differ from those published in our prior condensed consolidated financial statements as they were retrospectively adjusted as a result of the Reverse Stock Split (as described in Note 1, Organization and Business ). |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting | Revenues by segment consisted of the following: Three Months Ended March 31, In thousands 2023 2022 Integrated Care Management $ 3,873 $ 2,612 Virtual Care Infrastructure (1) 17,458 15,630 Services 20,814 17,730 Total revenues $ 42,145 $ 35,972 (1) As discussed in Note 1, Organization and Business , we deconsolidated Glocal during the three months ended September 30, 2022; accordingly, the financial results of Glocal for the three months ended March 31, 2022 are included in our unaudited condensed consolidated financial statements, and the financial results of Glocal for the three months ended March 31, 2023 are not included in our unaudited condensed consolidated financial statements. Gross profit by segment consisted of the following: Three Months Ended March 31, In thousands 2023 2022 Integrated Care Management $ 2,580 $ 1,638 Virtual Care Infrastructure (1) 10,185 6,501 Services 9,911 5,852 Total gross profit $ 22,676 $ 13,991 (1) As discussed in Note 1, Organization and Business , we deconsolidated Glocal during the three months ended September 30, 2022; accordingly, the financial results of Glocal for the three months ended March 31, 2022 are included in our unaudited condensed consolidated financial statements, and the financial results of Glocal for the three months ended March 31, 2023 are not included in our unaudited condensed consolidated financial statements. Total assets by segment consisted of the following: In thousands March 31, 2023 December 31, 2022 Integrated Care Management $ 45,132 44,776 Virtual Care Infrastructure (1) 140,311 140,776 Services 126,142 124,980 Corporate 27,212 29,272 Total assets $ 338,797 $ 339,804 (1) As discussed in Note 1, Organization and Business , we deconsolidated Glocal during the three months ended September 30, 2022; accordingly, the financial position of Glocal as of March 31, 2023 and December 31, 2022 and for the three months ended March 31, 2023 are not included in our unaudited condensed consolidated financial statements. |
Schedule of Total Assets by Geography | Total assets by geography consisted of the following: In thousands March 31, 2023 December 31, 2022 Americas $ 317,597 339,804 Asia (1) 21,200 — Total assets $ 338,797 $ 339,804 (1) As discussed in Note 1, Organization and Business |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Schedule of Components of Lease Expense | The components of lease expense consisted of the following for the three months ended March 31, 2023: Three Months Ended March 31, 2023 In thousands Third Party Related Party Total Finance lease costs: Amortization of right-of-use assets $ 885 $ — $ 885 Interest on lease liabilities 88 — 88 Operating lease costs 716 98 814 Short-term lease costs 27 67 94 Variable lease costs 144 — 144 Sublease income (129) — (129) Total lease costs $ 1,731 $ 165 $ 1,896 |
Schedule of Company's Lease Assets and Liabilities, Lease Term and Discount Rate Assumptions | Lease-related assets and liabilities recorded on the consolidated balance sheet are as follows: March 31, 2023 December 31, 2022 In thousands Third Party Related Party Total Third Party Related Party Total Assets Finance lease right-of-use assets (included in property and equipment, net) $ 5,546 $ — $ 5,546 $ 5,916 $ — $ 5,916 Operating lease right-of-use assets 5,331 1,313 6,644 5,819 1,394 7,213 Total leased assets $ 10,877 $ 1,313 $ 12,190 $ 11,735 $ 1,394 $ 13,129 Liabilities Lease liabilities, current: Finance lease liabilities $ 2,936 $ — $ 2,936 $ 3,023 $ — $ 3,023 Operating lease liabilities 2,045 336 2,381 2,130 322 2,452 Lease liabilities, current 4,981 336 5,317 5,153 322 5,475 Lease liabilities, noncurrent: Finance lease liabilities 2,813 — 2,813 2,976 — 2,976 Operating lease liabilities 4,235 1,002 5,237 4,672 1,093 5,765 Lease liabilities, noncurrent 7,048 1,002 8,050 7,648 1,093 8,741 Total leased liabilities $ 12,029 $ 1,338 $ 13,367 $ 12,801 $ 1,415 $ 14,216 The following table summarizes our lease term and discount rate assumptions as of March 31, 2023: March 31, 2023 Third Party Related Party Total Weighted-average remaining lease term (years): Finance leases 1.94 — 1.94 Operating leases 3.47 3.67 3.50 Weighted-average discount rate: Finance leases 6.3% — 6.3% Operating leases 6.8% 5.3% 6.5% |
Operating Lease Maturity | Undiscounted future minimum lease payments (displayed by year and in the aggregate) under noncancelable operating leases with terms of more than one year, as of March 31, 2023, have been reconciled to the total operating and finance lease liabilities recognized on the condensed consolidated balance sheets as of March 31, 2023 as follows: March 31, 2023 Finance Leases Operating Leases In thousands Third Party Related Party Total Third Party Related Party Total Remaining 2023 $ 2,495 $ — $ 2,495 $ 1,922 $ 291 $ 2,213 2024 2,526 — 2,526 1,930 421 2,351 2025 1,060 — 1,060 1,535 427 1,962 2026 — — — 1,029 323 1,352 2027 — — — 457 — 457 Thereafter — — — 380 — 380 Total lease payments 6,081 — 6,081 7,253 1,462 8,715 Less: Interest 332 — 332 973 124 1,097 Present value of lease liabilities $ 5,749 $ — $ 5,749 $ 6,280 $ 1,338 $ 7,618 |
Finance Leases Maturity | Undiscounted future minimum lease payments (displayed by year and in the aggregate) under noncancelable operating leases with terms of more than one year, as of March 31, 2023, have been reconciled to the total operating and finance lease liabilities recognized on the condensed consolidated balance sheets as of March 31, 2023 as follows: March 31, 2023 Finance Leases Operating Leases In thousands Third Party Related Party Total Third Party Related Party Total Remaining 2023 $ 2,495 $ — $ 2,495 $ 1,922 $ 291 $ 2,213 2024 2,526 — 2,526 1,930 421 2,351 2025 1,060 — 1,060 1,535 427 1,962 2026 — — — 1,029 323 1,352 2027 — — — 457 — 457 Thereafter — — — 380 — 380 Total lease payments 6,081 — 6,081 7,253 1,462 8,715 Less: Interest 332 — 332 973 124 1,097 Present value of lease liabilities $ 5,749 $ — $ 5,749 $ 6,280 $ 1,338 $ 7,618 |
Organization and Business - Nar
Organization and Business - Narrative (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | ||||||
Dec. 08, 2022 | Dec. 05, 2022 $ / shares | Jul. 31, 2022 USD ($) | Mar. 31, 2023 USD ($) | Sep. 30, 2022 USD ($) | May 10, 2023 USD ($) | Feb. 26, 2023 | Jun. 30, 2022 USD ($) | |
Class of Stock [Line Items] | ||||||||
Loss on deconsolidation of equity investment | $ 37.7 | |||||||
Fair value of Glocal | $ 21.2 | |||||||
Amount derecognized | $ 14.3 | |||||||
Company transferred amount to a designated “Share Account” | $ 5.1 | |||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | |||||||
Reverse stock split | 0.1 | |||||||
Disposal Group, Held-for-sale, Not Discontinued Operations | Innovation Group | Subsequent Event | ||||||||
Class of Stock [Line Items] | ||||||||
Consideration | $ 56 | |||||||
Innovations Group | ||||||||
Class of Stock [Line Items] | ||||||||
Noncontrolling interest, ownership percentage by parent | 100% | |||||||
Minimum | ||||||||
Class of Stock [Line Items] | ||||||||
Reverse stock split | 0.4 | |||||||
Maximum | ||||||||
Class of Stock [Line Items] | ||||||||
Reverse stock split | 0.1 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Reclassifications (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Total revenues | $ 42,145 | $ 35,972 |
Total costs of revenues | 19,469 | 21,981 |
Gross profit | 22,676 | 13,991 |
Operating expenses: | ||
Sales and marketing | 4,619 | 3,434 |
Research and development | 1,285 | 1,758 |
General and administrative | 11,009 | 11,467 |
Depreciation and amortization | 1,611 | 5,236 |
Stock-based compensation | 989 | 1,374 |
Lease abandonment expenses | 0 | 75 |
Goodwill and intangible asset impairment | 495 | 6,174 |
Acquisition, integration, and transformation costs | 3,446 | 2,384 |
Total operating expenses | 23,454 | 31,902 |
Loss from operations | (778) | (17,911) |
Other expense: | ||
Interest expense | (6,858) | (6,995) |
Gain on fair value of derivative liability | 26 | 4,829 |
Gain on fair value of warrant liabilities | (8) | 95 |
Other expense, net, including interest income | (17) | (16) |
Total other expense | (6,857) | (2,087) |
Loss before income tax benefit | (7,635) | (19,998) |
Income tax benefit | 0 | 2,293 |
Net loss | (7,635) | (17,705) |
Less: net income (loss) attributable to noncontrolling interests | 448 | (260) |
Net loss attributable to UpHealth, Inc. | (8,083) | (17,445) |
As reported | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Total revenues | 35,972 | |
Total costs of revenues | 20,668 | |
Gross profit | 15,304 | |
Operating expenses: | ||
Sales and marketing | 2,726 | |
Research and development | 1,587 | |
General and administrative | 13,659 | |
Depreciation and amortization | 5,236 | |
Stock-based compensation | 1,374 | |
Lease abandonment expenses | 75 | |
Goodwill and intangible asset impairment | 6,174 | |
Acquisition, integration, and transformation costs | 2,384 | |
Total operating expenses | 33,215 | |
Loss from operations | (17,911) | |
Other expense: | ||
Interest expense | (6,995) | |
Gain on fair value of derivative liability | 4,829 | |
Gain on fair value of warrant liabilities | 95 | |
Other expense, net, including interest income | (16) | |
Total other expense | (2,087) | |
Loss before income tax benefit | (19,998) | |
Income tax benefit | 2,293 | |
Net loss | (17,705) | |
Less: net income (loss) attributable to noncontrolling interests | (260) | |
Net loss attributable to UpHealth, Inc. | (17,445) | |
Revision of Prior Period, Error Correction, Adjustment | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Total costs of revenues | 1,313 | |
Gross profit | (1,313) | |
Operating expenses: | ||
Sales and marketing | 708 | |
Research and development | 171 | |
General and administrative | (2,192) | |
Total operating expenses | (1,313) | |
Loss from operations | 0 | |
Other expense: | ||
Loss before income tax benefit | 0 | |
Net loss | 0 | |
Net loss attributable to UpHealth, Inc. | 0 | |
Services | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Total revenues | 25,686 | |
Total costs of revenues | 15,758 | |
Services | As reported | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Total revenues | 25,686 | |
Total costs of revenues | 14,445 | |
Services | Revision of Prior Period, Error Correction, Adjustment | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Total costs of revenues | 1,313 | |
Licenses and subscriptions | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Total revenues | 1,936 | 1,781 |
Total costs of revenues | 319 | 233 |
Licenses and subscriptions | As reported | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Total revenues | 1,781 | |
Total costs of revenues | 233 | |
Products | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Total revenues | 9,268 | 8,505 |
Total costs of revenues | $ 5,406 | 5,990 |
Products | As reported | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Total revenues | 8,505 | |
Total costs of revenues | $ 5,990 |
Assets and Liabilities Held f_3
Assets and Liabilities Held for Sale - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2022 | |
Innovations Group | Disposal Group, Held-for-sale, Not Discontinued Operations | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Total loss on disposal group held for sale | $ 495 | $ 1,800 | $ 1,791 |
Assets and Liabilities Held f_4
Assets and Liabilities Held for Sale (Details) - Disposal Group, Held-for-sale, Not Discontinued Operations - Innovations Group - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2022 | |
Disposal Group, Including Discontinued Operation, Assets [Abstract] | |||
Accounts receivable, net | $ 117 | $ 78 | $ 78 |
Inventories | 2,425 | 2,058 | 2,058 |
Prepaid expenses and other current assets | 636 | 612 | 612 |
Property and equipment, net | 4,602 | 4,602 | 4,602 |
Operating lease right-of-use assets | 1,193 | 1,298 | 1,298 |
Intangible assets, net | 23,063 | 23,063 | 23,063 |
Goodwill | 33,561 | 35,353 | 35,353 |
Less: Impairment | (495) | (1,800) | (1,791) |
Total assets held for sale | 65,102 | 65,273 | 65,273 |
Disposal Group, Including Discontinued Operation, Liabilities [Abstract] | |||
Accounts payable | 978 | 1,104 | 1,104 |
Accrued expenses | 1,329 | 1,544 | 1,544 |
Deferred revenue | 234 | 242 | 242 |
Lease liabilities, current | 434 | 429 | 429 |
Deferred tax liabilities | 6,918 | 6,918 | 6,918 |
Lease liabilities, noncurrent | 760 | 869 | 869 |
Total liabilities held for sale | $ 10,653 | $ 11,106 | $ 11,106 |
Revenues - Disaggregation of Re
Revenues - Disaggregation of Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 42,145 | $ 35,972 |
Americas | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 42,145 | 32,663 |
Asia | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 0 | $ 3,309 |
Revenues - Narrative (Details)
Revenues - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Concentration Risk [Line Items] | ||
Impairment of contract assets | $ 0 | $ 0 |
Revenue recognized, percentage | 3.40% | 4% |
Revenue Recognition Timing | Total revenue | Transferred over-time | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 75% | 71% |
Revenues - Contract Assets (Det
Revenues - Contract Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Change In Contract With Customer, Asset [Roll Forward] | ||
Unbilled receivables, beginning of period | $ 694 | $ 784 |
Reclassifications to billed receivables | (694) | (232) |
Revenues recognized in excess of period billings | 668 | 285 |
Unbilled receivables, end of period | $ 668 | $ 837 |
Revenues - Contract Liabilities
Revenues - Contract Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Change In Contract With Customer, Liability [Roll Forward] | ||
Deferred revenue, beginning of period | $ 2,738 | $ 2,649 |
Revenues recognized from balances held at the beginning of the period | (1,442) | (1,581) |
Revenues deferred from period collections on unfulfilled performance obligations | 253 | 664 |
Deferred revenue, end of period | $ 1,549 | $ 1,732 |
Revenues - Remaining Performanc
Revenues - Remaining Performance Obligations (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 6,115 |
Subscriptions | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 4,023 |
Program management and professional services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | 2,092 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 5,011 |
Remaining performance obligations, period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | Subscriptions | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 2,919 |
Remaining performance obligations, period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | Program management and professional services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 2,092 |
Remaining performance obligations, period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 1,104 |
Remaining performance obligations, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Subscriptions | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 1,104 |
Remaining performance obligations, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Program management and professional services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 0 |
Remaining performance obligations, period | 1 year |
Supplemental Financial Statem_3
Supplemental Financial Statement Information (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 25,391 | $ 24,407 |
Accumulated depreciation and amortization | (11,067) | (10,338) |
Total property and equipment, net | 14,324 | 14,069 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 878 | 868 |
Electrical and other equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 21 | 21 |
Computer equipment, furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 16,413 | 16,222 |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 305 | 302 |
Capitalized software development costs | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 6,925 | 4,404 |
Capitalized software development costs in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 849 | $ 2,590 |
Supplemental Financial Statem_4
Supplemental Financial Statement Information - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 1,300 | $ 1,500 | |
Disposal Group, Held-for-sale, Not Discontinued Operations | Innovations Group | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, net | 4,602 | $ 4,602 | |
Accrued expenses | $ 1,329 | $ 1,544 |
Supplemental Financial Statem_5
Supplemental Financial Statement Information - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Accrued professional fees | $ 15,768 | $ 14,245 |
Accrued products and licenses | 17,820 | 17,820 |
Accrued interest on debt | 2,553 | 741 |
Accrued payroll and bonuses | 4,715 | 5,163 |
Other accruals | 243 | 794 |
Total accrued expenses | $ 41,099 | $ 38,763 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Changes in Carrying Amounts of Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Finite-lived Intangible Assets [Roll Forward] | ||
Beginning balance | $ 31,362 | |
Amortization | (1,146) | $ (5,100) |
Ending balance | 30,216 | |
Trade Names | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Beginning balance | 11,995 | |
Amortization | (358) | |
Ending balance | 11,637 | |
Technology and Intellectual Property | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Beginning balance | 5,850 | |
Amortization | (379) | |
Ending balance | 5,471 | |
Customer Relationships | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Beginning balance | 13,517 | |
Amortization | (409) | |
Ending balance | $ 13,108 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Finite-Lived Intangible Assets [Line Items] | |||
Impairment charge | $ 0 | $ 700,000 | |
Amortization expense | 1,146,000 | $ 5,100,000 | |
Trade Names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | 358,000 | ||
Technology and Intellectual Property | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 379,000 | ||
Customer Relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful lives (in years) | 10 years | ||
Amortization expense | $ 409,000 | ||
Minimum | Trade Names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful lives (in years) | 3 years | ||
Minimum | Technology and Intellectual Property | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful lives (in years) | 5 years | ||
Maximum | Trade Names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful lives (in years) | 10 years | ||
Maximum | Technology and Intellectual Property | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful lives (in years) | 7 years | ||
Disposal Group, Held-for-sale, Not Discontinued Operations | Innovations Group | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets noncurrent, assets held for sale | $ 23,100,000 | $ 23,100,000 | |
Disposal Group, Held-for-sale, Not Discontinued Operations | Innovations Group | Trade Names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets noncurrent, assets held for sale | 9,100,000 | ||
Disposal Group, Held-for-sale, Not Discontinued Operations | Innovations Group | Technology and Intellectual Property | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets noncurrent, assets held for sale | 5,700,000 | ||
Disposal Group, Held-for-sale, Not Discontinued Operations | Innovations Group | Customer Relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets noncurrent, assets held for sale | 7,800,000 | ||
Disposal Group, Held-for-sale, Not Discontinued Operations | Innovations Group | Lease Agreements | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets noncurrent, assets held for sale | $ 500,000 |
Intangible Assets - Schedule _2
Intangible Assets - Schedule of Estimated Amortization Expense Related to Definite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Remaining 2023 | $ 3,419 | |
2024 | 4,564 | |
2025 | 4,564 | |
2026 | 3,928 | |
2027 | 3,394 | |
Thereafter | 10,347 | |
Total | 30,216 | $ 31,362 |
Trade Name Amortization | ||
Finite-Lived Intangible Assets [Line Items] | ||
Remaining 2023 | 1,058 | |
2024 | 1,416 | |
2025 | 1,416 | |
2026 | 1,416 | |
2027 | 1,416 | |
Thereafter | 4,915 | |
Total | 11,637 | 11,995 |
Technology and Intellectual Property Amortization | ||
Finite-Lived Intangible Assets [Line Items] | ||
Remaining 2023 | 1,149 | |
2024 | 1,532 | |
2025 | 1,532 | |
2026 | 896 | |
2027 | 362 | |
Thereafter | 0 | |
Total | 5,471 | 5,850 |
Customer Relationships Amortization | ||
Finite-Lived Intangible Assets [Line Items] | ||
Remaining 2023 | 1,212 | |
2024 | 1,616 | |
2025 | 1,616 | |
2026 | 1,616 | |
2027 | 1,616 | |
Thereafter | 5,432 | |
Total | $ 13,108 | $ 13,517 |
Goodwill - Narrative (Details)
Goodwill - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2022 | |
Goodwill [Line Items] | ||||
Measurement period adjustments | $ 5,500 | |||
Disposal Group, Held-for-sale, Not Discontinued Operations | Innovations Group | ||||
Goodwill [Line Items] | ||||
Goodwill included in assets held for sale | $ 33,100 | $ 33,600 | $ 33,600 | |
Total loss on disposal group held for sale | $ 495 | $ 1,800 | $ 1,791 |
Goodwill - Schedule of Changes
Goodwill - Schedule of Changes in the Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 159,675 | $ 159,675 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Total debt | $ 182,500 | $ 182,500 |
Less: unamortized original issue and debt discount | (33,879) | (36,538) |
Total debt, net of unamortized original issue and debt discount | 148,621 | 145,962 |
Less: current portion of debt | 0 | 0 |
Noncurrent portion of debt | 148,621 | 145,962 |
Convertible notes | 2025 Notes | ||
Debt Instrument [Line Items] | ||
Total debt | 67,500 | 67,500 |
Convertible notes | 2026 Notes | ||
Debt Instrument [Line Items] | ||
Total debt | $ 115,000 | $ 115,000 |
Debt - Narrative (Details)
Debt - Narrative (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Dec. 15, 2022 | Aug. 12, 2022 USD ($) $ / shares shares | Jun. 15, 2021 USD ($) shares | Jun. 09, 2021 USD ($) | Aug. 31, 2022 USD ($) | Aug. 31, 2021 USD ($) | Mar. 31, 2023 USD ($) quarterly_installment | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | |||||||||
Total interest expense | $ 6,858,000 | $ 6,995,000 | |||||||
Stock issued during period, reverse stock splits (in shares) | shares | 115,000 | ||||||||
Stock issued during period, reverse stock splits | $ 700,000 | ||||||||
Carrying or outstanding amount of debt | 148,621,000 | $ 145,962,000 | |||||||
Affiliated Entity | Thrasys | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest expense | 3,000 | 10,000 | |||||||
Accrued interest on debt | 0 | 0 | |||||||
Notes payable to related parties | $ 200,000 | 300,000 | |||||||
Notes payable to related parties, interest rate | 3.50% | ||||||||
Number of quarterly installments | quarterly_installment | 8 | ||||||||
2026 Notes | Convertible notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount | $ 3,000,000 | $ 160,000,000 | |||||||
Debt instrument, interest rate | 6.25% | ||||||||
Convertible, shares issuable (in shares) | shares | 1,079,812 | 1,502,347 | |||||||
Conversion price (in dollars per share) | $ / shares | $ 106.50 | ||||||||
Proceeds from issuance of long-term debt | $ 151,900,000 | ||||||||
Debt issuance costs | $ 2,200,000 | $ 8,100,000 | |||||||
Fair value of derivative liability | $ 30,000 | 100,000 | |||||||
Total interest expense | 4,300,000 | 6,000,000 | |||||||
Contractual interest expense | 1,800,000 | 2,500,000 | |||||||
Derivative accretion | 2,200,000 | 3,100,000 | |||||||
Debt issuance costs amortization | 300,000 | 400,000 | |||||||
Gain on fair value of derivative liability | 26,000 | $ 4,800,000 | |||||||
Repayments of convertible debt | 45,000,000 | ||||||||
Debt instrument, fact amount, per instrument | $ 2,000,000 | ||||||||
Debt repurchase, percentage of principal amount | 100% | ||||||||
2025 Notes | Convertible notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount | $ 67,500,000 | ||||||||
Convertible, shares issuable (in shares) | shares | 3,857,142 | ||||||||
Conversion price (in dollars per share) | $ / shares | $ 17.50 | ||||||||
Contractual interest expense | 2,300,000 | ||||||||
Debt issuance costs amortization | 200,000 | ||||||||
Debt repurchase, percentage of principal amount | 105% | ||||||||
Gross cash proceeds | $ 22,500,000 | ||||||||
Debt issuance costs | $ 1,500,000 | ||||||||
Debt instrument, interest rate floor (percent) | 12.21% | 10.50% | |||||||
Debt redemption, repurchase increment | $ 1,000 | ||||||||
Sale of assets, net proceeds threshold for repurchase | $ 15,000,000 | ||||||||
Sale of assets, cash repurchase price as a percentage of net proceeds | 20% | ||||||||
Sale of assets, net proceeds threshold, redemption price percentage | 100% | ||||||||
Interest expense | $ 2,500,000 | ||||||||
Effective interest rate | 14.03% | ||||||||
2025 Notes | Convertible notes | SOFR | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate (percent) | 9% | ||||||||
Seller Notes | Notes payable, other payables | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount | $ 0 | 0 | |||||||
Interest expense | 0 | 500,000 | |||||||
Accrued interest on debt | $ 0 | $ 0 | |||||||
Repayments of sellers notes | $ 88,100,000 | $ 18,700,000 | $ 11,100,000 | ||||||
Payment for accrued interest | $ 1,900,000 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments - Schedule of Financial Assets and Liabilities Measured at Fair Value On a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Liabilities: | ||
Warrant liability | $ 17 | $ 9 |
Money market funds | ||
Assets: | ||
Cash equivalents - money market funds | 96 | 1,681 |
Fair Value, Recurring | ||
Assets: | ||
Total assets | 96 | 1,681 |
Liabilities: | ||
Derivative liability | 30 | 56 |
Warrant liability | 17 | 9 |
Total liabilities | 47 | 65 |
Fair Value, Recurring | Money market funds | ||
Assets: | ||
Cash equivalents - money market funds | 96 | 1,681 |
Fair Value, Recurring | Level 1 | ||
Assets: | ||
Total assets | 96 | 1,681 |
Liabilities: | ||
Derivative liability | 0 | 0 |
Warrant liability | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value, Recurring | Level 1 | Money market funds | ||
Assets: | ||
Cash equivalents - money market funds | 96 | 1,681 |
Fair Value, Recurring | Level 2 | ||
Assets: | ||
Total assets | 0 | 0 |
Liabilities: | ||
Derivative liability | 0 | 0 |
Warrant liability | 17 | 9 |
Total liabilities | 17 | 9 |
Fair Value, Recurring | Level 2 | Money market funds | ||
Assets: | ||
Cash equivalents - money market funds | 0 | 0 |
Fair Value, Recurring | Level 3 | ||
Assets: | ||
Total assets | 0 | 0 |
Liabilities: | ||
Derivative liability | 30 | 56 |
Warrant liability | 0 | 0 |
Total liabilities | 30 | 56 |
Fair Value, Recurring | Level 3 | Money market funds | ||
Assets: | ||
Cash equivalents - money market funds | $ 0 | $ 0 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Schedule of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 |
Cash and Cash Equivalents [Line Items] | |||
Amortized Cost | $ 13,333 | $ 15,557 | $ 52,036 |
Money market funds | |||
Cash and Cash Equivalents [Line Items] | |||
Amortized Cost | 96 | 1,681 | |
Fair Value | $ 96 | $ 1,681 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair value of warrants | $ 17 | $ 9 | |
Gain on fair value of warrant liabilities | $ (8) | $ 95 | |
2021 Private Placement Warrants | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair value price of warrants (in dollars per share) | $ 0.02 | $ 0.01 | |
Fair value of warrants | $ 11 | $ 6 | |
Gain on fair value of warrant liabilities | $ 5 | 100 | |
2021 PIPE Subscription Warrants | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair value price of warrants (in dollars per share) | $ 0.02 | $ 0.01 | |
Fair value of warrants | $ 6 | $ 3 | |
Gain on fair value of warrant liabilities | 3 | 33 | |
2026 Notes | Convertible notes | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair value of derivative liability | 30 | $ 100 | |
Gain on fair value of derivative liability | $ 26 | $ 4,800 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Schedule of Fair Value Significant Assumptions (Details) - Level 3 | Mar. 31, 2023 Year $ / shares | Dec. 31, 2022 $ / shares Year |
Stock price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liability, measurement input | 1.49 | 1.63 |
Volatility | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liability, measurement input | 0.950 | 0.950 |
Risk free rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liability, measurement input | 0.0379 | 0.0417 |
Exercise price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liability, measurement input | 106.50 | 106.50 |
Expected life (in years) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liability, measurement input | Year | 3.19 | 3.44 |
Conversion periods | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liability, measurement input | 2 | 2 |
Conversion periods | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liability, measurement input | 4 | 4 |
Future share price | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liability, measurement input | 0.10 | 0.10 |
Future share price | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liability, measurement input | 303.10 | 405.60 |
Capital Structure - Narrative (
Capital Structure - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||
Mar. 13, 2023 | Mar. 09, 2023 | Mar. 31, 2023 | Dec. 05, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock, par value (in dollars per share) | $ 0.0001 | |||
Issuance costs | $ 348 | |||
2023 Private Placement | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares issued or sold (in shares) | 1,650,000 | |||
Common stock, par value (in dollars per share) | $ 0.0001 | |||
Number of additional shares | 1,350,000 | |||
Price per share (in dollars per share) | $ 1.50 | |||
Exercise price of warrants (in dollars per share) | $ 2.04 | |||
Proceeds from issuance of stock | $ 4,500 | |||
Issuance costs | $ 300 | |||
2023 Private Placement | Series A Warrants | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Warrant vesting term | 6 months | |||
Warrant term | 5 years | |||
Number of securities called by warrants (in shares) | 3,000,000 | |||
2023 Private Placement | Series B Warrants | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Warrant vesting term | 6 months | |||
Warrant term | 2 years | |||
Number of securities called by warrants (in shares) | 3,000,000 | |||
2023 Private Placement | Pre-Funded Warrants | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Price per share (in dollars per share) | $ 1.4999 | |||
Exercise price of warrants (in dollars per share) | $ 0.0001 | $ 0.0001 |
Capital Structure - Schedule of
Capital Structure - Schedule of Common Stock Reserved for Future Issuance (Details) shares in Thousands | Mar. 31, 2023 shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock reserved for future issuance (in shares) | 16,610 |
Shares available for future grant under 2021 EIP | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock reserved for future issuance (in shares) | 1,032 |
Shares issuable upon conversion of 2021 Public Warrants | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock reserved for future issuance (in shares) | 1,725 |
Shares issuable upon conversion of 2021 Private Warrants | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock reserved for future issuance (in shares) | 57 |
Shares issuable upon conversion of 2021 PIPE Warrants | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock reserved for future issuance (in shares) | 29 |
Shares issuable upon conversion of the 2023 Private Placement Series A Warrants | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock reserved for future issuance (in shares) | 3,000 |
Shares issuable upon conversion of the 2023 Private Placement Series B Warrants | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock reserved for future issuance (in shares) | 3,000 |
Shares issuable upon conversion of the 2023 Private Placement Pre-Funded Warrants | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock reserved for future issuance (in shares) | 1,350 |
Shares issuable upon conversion of 2025 Notes | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock reserved for future issuance (in shares) | 3,857 |
Shares issuable upon conversion of 2026 Notes | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock reserved for future issuance (in shares) | 1,080 |
Restricted stock units outstanding | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock reserved for future issuance (in shares) | 1,342 |
Stock options outstanding | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common stock reserved for future issuance (in shares) | 138 |
Capital Structure - Summary of
Capital Structure - Summary of Stock Option Activity (Details) - Cloudbreak 2015 Incentive Plan shares in Thousands | 3 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Number of Shares | |
Options outstanding - balance at beginning of period (in shares) | shares | 138 |
Options exercised (in shares) | shares | 0 |
Options outstanding - balance at end of period (in shares) | shares | 138 |
Weighted Average Exercise Price Per Share | |
Options outstanding - balance at beginning of period (in dollars per shares) | $ / shares | $ 50.76 |
Options exercised (in dollars per share) | $ / shares | 0 |
Options outstanding - balance at end of period (in dollars per shares) | $ / shares | $ 50.76 |
Capital Structure - Summary o_2
Capital Structure - Summary of RSU Activity (Details) - RSUs - 2021 Equity Incentive Plan shares in Thousands | 3 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Outstanding at beginning of period (in shares) | shares | 878 |
RSUs granted (in shares) | shares | 663 |
RSUs vested and released (in shares) | shares | (82) |
RSUs forfeited (in shares) | shares | (117) |
Outstanding at end of period (in shares) | shares | 1,342 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 6.61 |
RSUs granted (in dollars per share) | $ / shares | 2.03 |
RSUs vested and released (in dollars per share) | $ / shares | 16.09 |
RSUs forfeited (in dollars per share) | $ / shares | 7.11 |
Outstanding at end of period (in dollars per share) | $ / shares | $ 3.73 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2009 | Dec. 31, 2008 | |
Income Tax Examination [Line Items] | ||||
Estimated annual effective interest rate for 2023 | 0% | |||
Income tax benefit | $ 0 | $ 2,293 | ||
Thrasys | ||||
Income Tax Examination [Line Items] | ||||
Long-term capital gain on sale | $ 15,000 | |||
Interest on tax, accrued | $ 200 | |||
Thrasys | Internal Revenue Service (IRS) | ||||
Income Tax Examination [Line Items] | ||||
Assertion of tax owed | $ 5,000 | |||
Interest on tax, percentage | 4% | |||
Potential interest expense | $ 3,000 | |||
Thrasys | California Franchise Tax Board | ||||
Income Tax Examination [Line Items] | ||||
Assertion of tax owed | $ 1,300 |
Earnings (Loss) Per Share - Sch
Earnings (Loss) Per Share - Schedule of Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Numerator: | |||
Net income (loss) attributable to UpHealth, Inc. | $ (8,083) | $ (17,445) | |
Denominator: | |||
Weighted average shares outstanding (in shares) | [1] | 15,730 | 14,454 |
Weighted average shares outstanding assuming dilution (in shares) | [1] | 15,730 | 14,454 |
Basic (in dollars per share) | $ (0.51) | $ (1.21) | |
Diluted (in dollars per share) | $ (0.51) | $ (1.21) | |
Stock options outstanding | |||
Denominator: | |||
Dilutive effect of share-based payment arrangements (in shares) | 0 | 0 | |
RSUs | |||
Denominator: | |||
Dilutive effect of share-based payment arrangements (in shares) | 0 | 0 | |
[1] Amounts as of March 31, 2022 and before that date differ from those published in our prior condensed consolidated financial statements as they were retrospectively adjusted as a result of the Reverse Stock Split (as described below in Note 1, Organization and Business |
Earnings (Loss) Per Share - Nar
Earnings (Loss) Per Share - Narrative (Details) - $ / shares shares in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 13, 2023 | |
Warrants | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive shares (in shares) | 1,800 | 1,800 | |
Potentially dilutive shares, price per share (in dollars per share) | $ 115 | $ 115 | |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive shares (in shares) | 100 | 23 | |
RSUs | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive shares (in shares) | 1,300 | ||
Senior convertible notes | 2025 Notes | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive shares (in shares) | 3,900 | ||
Potentially dilutive shares, price per share (in dollars per share) | $ 17.50 | ||
Senior convertible notes | 2026 Notes | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive shares (in shares) | 1,100 | 1,500 | |
Potentially dilutive shares, price per share (in dollars per share) | $ 106.50 | $ 106.50 | |
Forward share purchase agreement | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive shares (in shares) | 200 | ||
Private Placement | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Exercise price of warrants (in dollars per share) | $ 2.04 | ||
Pre-Funded Warrants | Private Placement | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive shares (in shares) | 1,350 | ||
Exercise price of warrants (in dollars per share) | $ 0.0001 | $ 0.0001 | |
Common Stock Warrants | Warrants | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive shares (in shares) | 6,000 | ||
Potentially dilutive shares, price per share (in dollars per share) | $ 2.04 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - Affiliated Entity - Guaranteed Payments - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | |||
Related party expense | $ 0.4 | $ 1.4 | |
Unpaid guaranteed payments | $ 0.2 | $ 0.5 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) | 3 Months Ended |
Mar. 31, 2023 segment | |
Segment Reporting [Abstract] | |
Number of operating business segments | 3 |
Number of non-operating business segments | 1 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Segment Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | |||
Total revenues | $ 42,145 | $ 35,972 | |
Total gross profit | 22,676 | 13,991 | |
Total assets | 338,797 | $ 339,804 | |
Integrated Care Management | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 3,873 | 2,612 | |
Total gross profit | 2,580 | 1,638 | |
Total assets | 45,132 | 44,776 | |
Virtual Care Infrastructure | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 17,458 | 15,630 | |
Total gross profit | 10,185 | 6,501 | |
Total assets | 140,311 | 140,776 | |
Services | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 20,814 | 17,730 | |
Total gross profit | 9,911 | $ 5,852 | |
Total assets | 126,142 | 124,980 | |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Total assets | $ 27,212 | $ 29,272 |
Segment Reporting - Total Asset
Segment Reporting - Total Assets by Geography (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 338,797 | $ 339,804 |
Americas | ||
Segment Reporting Information [Line Items] | ||
Total assets | 317,597 | 339,804 |
Asia | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 21,200 | $ 0 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Lessee, Lease, Description [Line Items] | |
Amortization of right-of-use assets | $ 885 |
Interest on lease liabilities | 88 |
Operating lease costs | 814 |
Short-term lease costs | 94 |
Variable lease costs | 144 |
Sublease income | (129) |
Total lease costs | 1,896 |
Third Party | |
Lessee, Lease, Description [Line Items] | |
Amortization of right-of-use assets | 885 |
Interest on lease liabilities | 88 |
Operating lease costs | 716 |
Short-term lease costs | 27 |
Variable lease costs | 144 |
Sublease income | (129) |
Total lease costs | 1,731 |
Related Party | |
Lessee, Lease, Description [Line Items] | |
Amortization of right-of-use assets | 0 |
Interest on lease liabilities | 0 |
Operating lease costs | 98 |
Short-term lease costs | 67 |
Variable lease costs | 0 |
Sublease income | 0 |
Total lease costs | $ 165 |
Leases - Lease-Related Assets a
Leases - Lease-Related Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Lessee, Lease, Description [Line Items] | ||
Finance lease right-of-use assets (included in property and equipment, net) | $ 5,546 | $ 5,916 |
Operating lease right-of-use assets | 6,644 | 7,213 |
Total leased assets | 12,190 | 13,129 |
Current finance lease liabilities | 2,936 | 3,023 |
Current operating lease liabilities | 2,381 | 2,452 |
Lease liabilities, current | 5,317 | 5,475 |
Noncurrent finance lease liabilities | 2,813 | 2,976 |
Noncurrent operating lease liabilities | 5,237 | 5,765 |
Lease liabilities, noncurrent | 8,050 | 8,741 |
Total leased liabilities | $ 13,367 | $ 14,216 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Lease liabilities, current | Lease liabilities, current |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Lease liabilities, current | Lease liabilities, current |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Lease liabilities, noncurrent | Lease liabilities, noncurrent |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Lease liabilities, noncurrent | Lease liabilities, noncurrent |
Third Party | ||
Lessee, Lease, Description [Line Items] | ||
Finance lease right-of-use assets (included in property and equipment, net) | $ 5,546 | $ 5,916 |
Operating lease right-of-use assets | 5,331 | 5,819 |
Total leased assets | 10,877 | 11,735 |
Current finance lease liabilities | 2,936 | 3,023 |
Current operating lease liabilities | 2,045 | 2,130 |
Lease liabilities, current | 4,981 | 5,153 |
Noncurrent finance lease liabilities | 2,813 | 2,976 |
Noncurrent operating lease liabilities | 4,235 | 4,672 |
Lease liabilities, noncurrent | 7,048 | 7,648 |
Total leased liabilities | 12,029 | 12,801 |
Related Party | ||
Lessee, Lease, Description [Line Items] | ||
Finance lease right-of-use assets (included in property and equipment, net) | 0 | 0 |
Operating lease right-of-use assets | 1,313 | 1,394 |
Total leased assets | 1,313 | 1,394 |
Current finance lease liabilities | 0 | 0 |
Current operating lease liabilities | 336 | 322 |
Lease liabilities, current | 336 | 322 |
Noncurrent finance lease liabilities | 0 | 0 |
Noncurrent operating lease liabilities | 1,002 | 1,093 |
Lease liabilities, noncurrent | 1,002 | 1,093 |
Total leased liabilities | $ 1,338 | $ 1,415 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Lessee, Lease, Description [Line Items] | |||
Accumulated amortization related to finance lease assets | $ 4,800 | $ 3,900 | |
Lease abandonment expenses | $ 0 | $ 75 | |
Related Party | |||
Lessee, Lease, Description [Line Items] | |||
Rent expense | 200 | ||
Third Party | |||
Lessee, Lease, Description [Line Items] | |||
Rent expense | 1,200 | ||
Sublease revenue | $ 200 |
Leases - Company's Lease Term a
Leases - Company's Lease Term and Discount Rate Assumptions (Details) | Mar. 31, 2023 |
Weighted-average remaining lease term (years): | |
Finance leases | 1 year 11 months 8 days |
Operating leases | 3 years 6 months |
Weighted-average discount rate: | |
Finance leases | 6.30% |
Operating leases | 6.50% |
Third Party | |
Weighted-average remaining lease term (years): | |
Finance leases | 1 year 11 months 8 days |
Operating leases | 3 years 5 months 19 days |
Weighted-average discount rate: | |
Finance leases | 6.30% |
Operating leases | 6.80% |
Related Party | |
Weighted-average remaining lease term (years): | |
Operating leases | 3 years 8 months 1 day |
Weighted-average discount rate: | |
Operating leases | 5.30% |
Leases - Undiscounted Future Mi
Leases - Undiscounted Future Minimum Lease Payments (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Finance Leases | |
Remaining 2023 | $ 2,495 |
2024 | 2,526 |
2025 | 1,060 |
2026 | 0 |
2027 | 0 |
Thereafter | 0 |
Total lease payments | 6,081 |
Less: Interest | 332 |
Present value of lease liabilities | $ 5,749 |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Lease liabilities, current, Lease liabilities, noncurrent |
Operating Leases | |
Remaining 2023 | $ 2,213 |
2024 | 2,351 |
2025 | 1,962 |
2026 | 1,352 |
2027 | 457 |
Thereafter | 380 |
Total lease payments | 8,715 |
Less: Interest | 1,097 |
Present value of lease liabilities | $ 7,618 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Lease liabilities, current, Lease liabilities, noncurrent |
Third Party | |
Finance Leases | |
Remaining 2023 | $ 2,495 |
2024 | 2,526 |
2025 | 1,060 |
2026 | 0 |
2027 | 0 |
Thereafter | 0 |
Total lease payments | 6,081 |
Less: Interest | 332 |
Present value of lease liabilities | 5,749 |
Operating Leases | |
Remaining 2023 | 1,922 |
2024 | 1,930 |
2025 | 1,535 |
2026 | 1,029 |
2027 | 457 |
Thereafter | 380 |
Total lease payments | 7,253 |
Less: Interest | 973 |
Present value of lease liabilities | 6,280 |
Related Party | |
Finance Leases | |
Remaining 2023 | 0 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
Thereafter | 0 |
Total lease payments | 0 |
Less: Interest | 0 |
Present value of lease liabilities | 0 |
Operating Leases | |
Remaining 2023 | 291 |
2024 | 421 |
2025 | 427 |
2026 | 323 |
2027 | 0 |
Thereafter | 0 |
Total lease payments | 1,462 |
Less: Interest | 124 |
Present value of lease liabilities | $ 1,338 |
Commitments and Contingencies -
Commitments and Contingencies - Contingencies Narrative (Details) - Advisory services agreement dispute - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Loss Contingencies [Line Items] | ||
Damages sought | $ 31 | |
Current accrual loss provision | 8 | $ 8 |
Minimum | ||
Loss Contingencies [Line Items] | ||
Estimated maximum exposure to loss | 8 | |
Maximum | ||
Loss Contingencies [Line Items] | ||
Estimated maximum exposure to loss | $ 26.3 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | May 10, 2023 | Feb. 26, 2023 |
Subsequent Event | Disposal Group, Held-for-sale, Not Discontinued Operations | Innovation Group | ||
Subsequent Event [Line Items] | ||
Gross proceeds | $ 56 | |
Innovations Group | ||
Subsequent Event [Line Items] | ||
Ownership percentage | 100% |