|
Delaware
|
| |
8011
|
| |
84-356323
|
|
|
(State or other jurisdiction of
incorporation or organization) |
| |
(Primary Standard Industrial
Classification Code Number) |
| |
(I.R.S. Employer
Identification No.) |
|
|
Large accelerated filer
☐
|
| |
Accelerated filer
☒
|
|
|
Non-accelerated filer
☐
|
| |
Smaller reporting company
☒
|
|
| | | |
Emerging growth company
☒
|
|
| | | | | ii | | | |
| | | | | iii | | | |
| | | | | viii | | | |
| | | | | 1 | | | |
| | | | | 6 | | | |
| | | | | 7 | | | |
| | | | | 38 | | | |
| | | | | 39 | | | |
| | | | | 40 | | | |
| | | | | 41 | | | |
| | | | | 53 | | | |
| | | | | 71 | | | |
| | | | | 86 | | | |
| | | | | 92 | | | |
| | | | | 104 | | | |
| | | | | 106 | | | |
| | | | | 110 | | | |
| | | | | 119 | | | |
| | | | | 129 | | | |
| | | | | 132 | | | |
| | | | | 132 | | | |
| | | | | 132 | | | |
| | | | | F-1 | | | |
| | | | | II-1 | | |
| | |
September 30, 2021
|
| |
Reclassification
Adjustments (Note 2) |
| |
Transaction
Accounting Adjustments |
| | | | |
September 30,
2021 |
| ||||||||||||||||||
|
DFP Healthcare
Acquisitions Corp. (Historical) |
| |
TOI Parent, Inc.
(Historical) |
| |
Pro Forma
Combined |
| ||||||||||||||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash
|
| | | $ | 205 | | | | | $ | 11,532 | | | | | $ | — | | | | | $ | 230,013 | | | |
(A)
|
| | | $ | 138,934 | | |
| | | | | | | | | | | | | | | | | | | | | | | 268,000 | | | |
(B)
|
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | (6,300) | | | |
(C)
|
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | (20,597) | | | |
(D)
|
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | (145,988) | | | |
(K)
|
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | (26,700) | | | |
(E)
|
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | (18) | | | |
(P)
|
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | (171,213) | | | |
(G)
|
| | | | | | |
Accounts receivable
|
| | | | — | | | | | | 22,257 | | | | | | — | | | | | | — | | | | | | | | | 22,257 | | |
Other receivables
|
| | | | — | | | | | | 581 | | | | | | — | | | | | | — | | | | | | | | | 581 | | |
Inventories, net
|
| | | | — | | | | | | 5,757 | | | | | | — | | | | | | — | | | | | | | | | 5,757 | | |
Prepaid expenses
|
| | | | 82 | | | | | | 2,077 | | | | | | — | | | | | | — | | | | | | | | | 2,159 | | |
Deferred transaction costs
|
| | | | — | | | | | | 9,094 | | | | | | — | | | | | | — | | | | | | | | | 9,094 | | |
Total current assets
|
| | | | 287 | | | | | | 51,298 | | | | | | — | | | | | | 127,197 | | | | | | | | | 178,782 | | |
Non-current assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Property and equipment, net
|
| | | | — | | | | | | 3,517 | | | | | | — | | | | | | — | | | | | | | | | 3,517 | | |
Intangible assets, net
|
| | | | — | | | | | | 18,157 | | | | | | — | | | | | | — | | | | | | | | | 18,157 | | |
Goodwill
|
| | | | — | | | | | | 15,680 | | | | | | — | | | | | | — | | | | | | | | | 15,680 | | |
Other assets
|
| | | | — | | | | | | 250 | | | | | | — | | | | | | — | | | | | | | | | 250 | | |
Deferred income taxes asset
|
| | | | — | | | | | | 1,925 | | | | | | — | | | | | | — | | | | | | | | | 1,925 | | |
Cash and investments held in Trust Account
|
| | | | 230,013 | | | | | | — | | | | | | — | | | | | | (230,013) | | | |
(A)
|
| | | | — | | |
Total assets
|
| | | | 230,300 | | | | | | 90,827 | | | | | | — | | | | | | (102,816) | | | | | | | | | 218,311 | | |
Liabilities and Stockholders’ Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Accounts payable
|
| | | | 961 | | | | | | 19,014 | | | | | | — | | | | | | (961) | | | |
(E)
|
| | | | 19,014 | | |
Current portion of long-term debt
|
| | | | — | | | | | | 4,895 | | | | | | — | | | | | | — | | | | | | | | | 4,895 | | |
Income taxes payable
|
| | | | — | | | | | | 6,159 | | | | | | — | | | | | | — | | | | | | | | | 6,159 | | |
Accrued expenses and other current liabilities
|
| | | | 2,626 | | | | | | 11,758 | | | | | | — | | | | | | (12,728) | | | |
(E)
|
| | | | 1,656 | | |
Accrued expenses – related parties
|
| | | | 18 | | | | | | — | | | | | | — | | | | | | (18) | | | |
(P)
|
| | | | — | | |
Franchise tax payable
|
| | | | 29 | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | 29 | | |
Total current liabilities
|
| | | | 3,634 | | | | | | 41,826 | | | | | | — | | | | | | (13,707) | | | | | | | | | 31,753 | | |
Non-current liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other non-current liabilities
|
| | | | — | | | | | | 1,518 | | | | | | — | | | | | | 65,469 | | | |
(F)
|
| | | | 66,987 | | |
Deferred underwriting
commissions |
| | | | 6,300 | | | | | | — | | | | | | — | | | | | | (6,300) | | | |
(C)
|
| | | | — | | |
| | |
September 30, 2021
|
| |
Reclassification
Adjustments (Note 2) |
| |
Transaction
Accounting Adjustments |
| | | | |
September 30,
2021 |
| ||||||||||||||||||
|
DFP Healthcare
Acquisitions Corp. (Historical) |
| |
TOI Parent, Inc.
(Historical) |
| |
Pro Forma
Combined |
| ||||||||||||||||||||||||||
Derivative liability
|
| | | | — | | | | | | — | | | | | | 15,268 | | | | | | (9,258) | | | |
(N)
|
| | | | 5,115 | | |
| | | | | | | | | | | | | | | | | | | | | | | (895) | | | |
(O)
|
| | | | | | |
Derivative warrant liabilities
|
| | | | 15,268 | | | | | | — | | | | | | (15,268) | | | | | | — | | | | | | | | | — | | |
Total liabilities
|
| | | | 25,202 | | | | | | 43,344 | | | | | | — | | | | | | 35,309 | | | | | | | | | 103,855 | | |
Commitments and Contingencies | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A common stock subject to possible redemption
|
| | | | 230,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | — | | |
| | | | | | | | | | | | | | | | | | | | | | | (230,000) | | | |
(H)
|
| | | | | | |
6% cumulative Series A Preferred Shares
|
| | | | — | | | | | | 100,113 | | | | | | — | | | | | | (100,113) | | | |
(I)
|
| | | | — | | |
Stockholders’ equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Series A Common Equivalent Preferred Stock
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | |
(L)
|
| | | | — | | |
Class A common stock
|
| | | | — | | | | | | — | | | | | | — | | | | | | 2 | | | |
(H)
|
| | | | 7 | | |
| | | | | | | | | | | | | | | | | | | | | | | 3 | | | |
(B)
|
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | 5 | | | |
(K)
|
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | — | | | |
(L)
|
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | (2) | | | |
(G)
|
| | | | | | |
Class B common stock
|
| | | | 1 | | | | | | — | | | | | | — | | | | | | (1) | | | |
(J)
|
| | | | — | | |
Common shares
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | — | | |
Additional paid-in capital
|
| | | | — | | | | | | 447 | | | | | | — | | | | | | (171,211) | | | |
(G)
|
| | | | 187,616 | | |
| | | | | | | | | | | | | | | | | | | | | | | 229,998 | | | |
(H)
|
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | (24,903) | | | |
(M)
|
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | 100,113 | | | |
(I)
|
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | 267,998 | | | |
(B)
|
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | (145,993) | | | |
(K)
|
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | (65,469) | | | |
(F)
|
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | (12,623) | | | |
(E)
|
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | 9,258 | | | |
(N)
|
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | 1 | | | |
(J)
|
| | | | | | |
Accumulated deficit
|
| | | | (24,903) | | | | | | (53,077) | | | | | | — | | | | | | 24,903 | | | |
(M)
|
| | | | (73,167) | | |
| | | | | | | | | | | | | | | | | | | | | | | (20,597) | | | |
(D)
|
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | (388) | | | |
(E)
|
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | 895 | | | |
(O)
|
| | | | | | |
Total stockholders’ equity
|
| | | | (24,902) | | | | | | (52,630) | | | | | | — | | | | | | 191,988 | | | | | | | | | 114,456 | | |
Total liabilities and stockholders’ equity
|
| | | | 230,300 | | | | | | 90,827 | | | | | | — | | | | | | (102,816) | | | | | | | | | 218,311 | | |
|
| | |
Nine months ended September 30, 2021
|
| | | | | | | | | | |
Nine months ended
September 30, 2021 |
| ||||||||||||
| | |
DFP Healthcare
Acquisitions Corp. (Historical) |
| |
TOI Parent, Inc.
(Historical) |
| |
Transaction
Accounting Adjustments |
| | | | |
Pro Forma
Combined |
| ||||||||||||
Revenue | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Patient services
|
| | | $ | — | | | | | $ | 92,376 | | | | | $ | — | | | | | | | | $ | 92,376 | | |
Dispensary
|
| | | | — | | | | | | 53,318 | | | | | | — | | | | | | | | | 53,318 | | |
Clinical trials & other
|
| | | | — | | | | | | 5,005 | | | | | | — | | | | | | | | | 5,005 | | |
Total operating revenue
|
| | | | — | | | | | | 150,699 | | | | | | — | | | | | | | | | 150,699 | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Direct costs – patient services
|
| | | | — | | | | | | 72,051 | | | | | | — | | | | | | | | | 72,051 | | |
Direct costs – dispensary
|
| | | | — | | | | | | 45,639 | | | | | | — | | | | | | | | | 45,639 | | |
Direct costs – clinical trials & other
|
| | | | — | | | | | | 494 | | | | | | — | | | | | | | | | 494 | | |
Selling, general and administrative
expense |
| | | | 4,142 | | | | | | 35,120 | | | | | | 1,040 | | | |
(AA)
|
| | | | 47,422 | | |
| | | | | | | | | | | | | | | | | 10,707 | | | |
(BB)
|
| | | | | | |
| | | | | | | | | | | | | | | | | (3,587) | | | |
(GG)
|
| | | | | | |
Depreciation and amortization
|
| | | | — | | | | | | 2,422 | | | | | | — | | | | | | | | | 2,422 | | |
General and administrative expenses – related party
|
| | | | 158 | | | | | | — | | | | | | (158) | | | |
(DD)
|
| | | | — | | |
Franchise tax expense
|
| | | | 150 | | | | | | — | | | | | | — | | | | | | | | | 150 | | |
Total operating expenses
|
| | | | 4,450 | | | | | | 155,726 | | | | | | 8,002 | | | | | | | | | 168,178 | | |
Loss from operations
|
| | | | (4,450) | | | | | | (5,027) | | | | | | (8,002) | | | | | | | | | (17,479) | | |
Other non-operating (income) expense | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense
|
| | | | — | | | | | | 260 | | | | | | — | | | | | | | | | 260 | | |
Gain on debt extinguishment
|
| | | | — | | | | | | (5,186) | | | | | | — | | | | | | | | | (5,186) | | |
Other, net
|
| | | | — | | | | | | (1,126) | | | | | | — | | | | | | | | | (1,126) | | |
Interest income from investments in Trust Account
|
| | | | (58) | | | | | | — | | | | | | 58 | | | |
(CC)
|
| | | | — | | |
Change in fair value of derivative warrant liabilities
|
| | | | (3,523) | | | | | | | | | | | | — | | | | | | | | | (3,523) | | |
Total other non-operating (income)
expense |
| | | | (3,581) | | | | | | (6,052) | | | | | | 58 | | | | | | | | | (9,575) | | |
Loss before provision for income taxes
|
| | | | (869) | | | | | | 1,025 | | | | | | (8,060) | | | | | | | | | (7,904) | | |
Provision for income taxes (benefit)
|
| | | | — | | | | | | 1,796 | | | | | | — | | | | | | | | | 1,796 | | |
Net loss
|
| | | | (869) | | | | | | (771) | | | | | | (8,060) | | | | | | | | | (9,700) | | |
Weighted average shares outstanding of DFP Class A Common Stock, basic and diluted
|
| | | | | | | | | | | | | | | | | | | | | | | |
|
73,787,558
|
| |
Basic and diluted net loss per share, DFP Class A Common Stock
|
| | | | | | | | | | | | | | | | | | | | | | | | $ | (0.11) | | |
| | |
Year ended December 31, 2020
|
| | | | | | | | | | | | | |
Year ended
December 31, 2020 |
| ||||||||||||
| | |
DFP Healthcare
Acquisitions Corp. (Historical) |
| |
TOI Parent, Inc.
(Historical) |
| |
Transaction
Accounting Adjustments |
| | | | | | | |
Pro Forma
Combined |
| ||||||||||||
Revenue | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Patient services
|
| | | $ | — | | | | | $ | 116,817 | | | | | $ | — | | | | | | | | | | | $ | 116,817 | | |
Dispensary
|
| | | | — | | | | | | 63,890 | | | | | | — | | | | | | | | | | | | 63,890 | | |
Clinical trials & other
|
| | | | — | | | | | | 6,808 | | | | | | — | | | | | | | | | | | | 6,808 | | |
Total operating revenue
|
| | | | — | | | | | | 187,515 | | | | | | — | | | | | | | | | | | | 187,515 | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Direct costs – patient services
|
| | | | — | | | | | | 95,747 | | | | | | — | | | | | | | | | | | | 95,747 | | |
Direct costs – dispensary
|
| | | | — | | | | | | 53,907 | | | | | | — | | | | | | | | | | | | 53,907 | | |
Direct costs – clinical trials & other
|
| | | | — | | | | | | 982 | | | | | | — | | | | | | | | | | | | 982 | | |
Selling, general and administrative
expense |
| | | | 309 | | | | | | 41,897 | | | | | | 6,469 | | | | | | (AA) | | | | | | 83,548 | | |
| | | | | | | | | | | | | | | | | 34,873 | | | | | | (BB) | | | | | | | | |
Depreciation and amortization
|
| | | | — | | | | | | 3,178 | | | | | | — | | | | | | | | | | | | 3,178 | | |
General and administrative expenses – related
party |
| | | | 175 | | | | | | — | | | | | | (175) | | | | | | (DD) | | | | | | — | | |
Franchise tax expense
|
| | | | 200 | | | | | | — | | | | | | — | | | | | | | | | | | | 200 | | |
Total operating expenses
|
| | | | 684 | | | | | | 195,711 | | | | | | 41,167 | | | | | | | | | | | | 237,562 | | |
Loss from operations
|
| | | | (684) | | | | | | (8,196) | | | | | | (41,167) | | | | | | | | | | | | (50,047) | | |
Other non-operating expense (income) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense
|
| | | | — | | | | | | 347 | | | | | | — | | | | | | | | | | | | 347 | | |
Other, net
|
| | | | — | | | | | | 6,271 | | | | | | 388 | | | | | | (EE) | | | | | | 6,659 | | |
Interest income from investments in Trust Account
|
| | | | (254) | | | | | | — | | | | | | 254 | | | | | | (CC) | | | | | | — | | |
Change in fair value of derivative warrant liabilities
|
| | | | 7,584 | | | | | | — | | | | | | — | | | | | | | | | | | | 7,584 | | |
Offering costs associated with derivative warrant liabilities
|
| | | | 315 | | | | | | — | | | | | | — | | | | | | | | | | | | 315 | | |
Total other non-operating expense (income)
|
| | | | 7,645 | | | | | | 6,618 | | | | | | 642 | | | | | | | | | | | | 14,905 | | |
Loss before provision for income taxes
|
| | | | (8,329) | | | | | | (14,814) | | | | | | (41,809) | | | | | | | | | | | | (64,952) | | |
Provision for income taxes (benefit)
|
| | | | 11 | | | | | | (493) | | | | | | — | | | | | | | | | | | | (482) | | |
Net loss
|
| | | | (8,340) | | | | | | (14,321) | | | | | | (41,809) | | | | | | | | | | | | (64,470) | | |
Weighted average shares outstanding of DFP Class A Common Stock, basic and
diluted |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
73,385,485
|
| |
Basic and diluted net loss per share, DFP Class A Common Stock
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | $ | (0.72) | | |
| | |
Final Redemption
|
| |||||||||
| | |
After Deerfield Exchange
|
| |||||||||
| | |
DFP Class A
Common Shares |
| |
% voting
|
| ||||||
Other DFP Class A Common Shares
|
| | | | 879,637 | | | | | | 1.2% | | |
Other DFP Class B Common Shares
|
| | | | 246,828 | | | | | | 0.3% | | |
TOI Parent, Inc.
|
| | | | 51,326,470 | | | | | | 70.1% | | |
Deerfield Holders
|
| | | | 3,296,107 | | | | | | 4.5% | | |
Other PIPE shares
|
| | | | 17,500,000 | | | | | | 23.9% | | |
Total DFP Class A Common Shares at Close
|
| | | | 73,249,042 | | | | | | 100% | | |
Total Series A Common Equivalent Preferred Stock at Close
|
| | | | 163,510 | | | | | | | | |
| | |
Nine months ended
September 30, 2021 |
| |||
Basic and Diluted EPS: | | | | | | | |
Pro forma net loss
|
| | | $ | (9,700) | | |
Pro forma loss allocated to participating securities
|
| | | | (1,760) | | |
Pro forma net loss attributable to DFP Class A Common Stockholders
|
| | | | (7,940) | | |
DFP Class A Common Stock | | | | | | | |
Weighted average shares outstanding of DFP Class A Common Stock, basic and diluted(1)
|
| | | | 73,787,558 | | |
Basic and diluted net loss per share, DFP Class A Common Stock(3)
|
| | | $ | (0.11) | | |
| | |
Year ended
December 31, 2020 |
| |||
Basic and Diluted EPS: | | | | | | | |
Pro forma net loss
|
| | | $ | (64,470) | | |
Pro forma net loss allocated to participating securities
|
| | | | (11,747) | | |
Pro forma net loss attributable to DFP Class A Common Stockholders
|
| | | | (52,723) | | |
DFP Class A Common Stock | | | | | | | |
Weighted average shares outstanding of DFP Class A Common Stock, basic and diluted(2)
|
| | | | 73,385,485 | | |
Basic and diluted net loss per share, DFP Class A Common Stock(3)
|
| | | $ | (0.72) | | |
| | |
Three Months
Ended September 30, |
| |
Nine Months
Ended September 30, |
| |
Year Ended
December 31, |
| |||||||||||||||||||||||||||
(dollars in thousands)
|
| |
2021
|
| |
2020
|
| |
2021
|
| |
2020
|
| |
2020
|
| |
2019
|
| ||||||||||||||||||
Clinics(1)(2) | | | | $ | 62 | | | | | $ | 55 | | | | | $ | 62 | | | | | $ | 55 | | | | | $ | 54 | | | | | $ | 53 | | |
Markets(1) | | | | | 10 | | | | | | 7 | | | | | | 10 | | | | | | 7 | | | | | | 7 | | | | | | 7 | | |
Lives under value-based contracts (millions)(1)
|
| | | | 1.6 | | | | | | 1.2 | | | | | | 1.6 | | | | | | 1.2 | | | | | | 1.3 | | | | | | 1.1 | | |
Adjusted EBITDA
|
| | | $ | 110 | | | | | $ | 1,353 | | | | | $ | 522 | | | | | $ | 4 | | | | | $ | 5,773 | | | | | $ | 4,760 | | |
| | |
Three Months Ended
September 30 |
| |
Change
|
| ||||||||||||||||||
(dollars in thousands)
|
| |
2021
|
| |
2020
|
| |
$
|
| |
%
|
| ||||||||||||
Net loss
|
| | | $ | (2,980) | | | | | $ | (676) | | | | | $ | (2,304) | | | | | | 341% | | |
Depreciation and amortization
|
| | | | 850 | | | | | | 792 | | | | | | 58 | | | | | | 7% | | |
Interest expense
|
| | | | 78 | | | | | | 107 | | | | | | (29) | | | | | | (27)% | | |
Income tax expense (benefit)
|
| | | | 799 | | | | | | (23) | | | | | | 822 | | | | | | (3,574)% | | |
Board and management fees
|
| | | | 106 | | | | | | 160 | | | | | | (54) | | | | | | (34)% | | |
Non-cash addbacks(1)
|
| | | | 99 | | | | | | 49 | | | | | | 50 | | | | | | 102% | | |
Stock-based compensation
|
| | | | 59 | | | | | | 36 | | | | | | 23 | | | | | | 64% | | |
Acquisition-related costs(2)
|
| | | | 71 | | | | | | — | | | | | | 71 | | | | | | N/A | | |
Consulting and legal fees(3)
|
| | | | 221 | | | | | | 344 | | | | | | (123) | | | | | | (36)% | | |
Other, net(4)
|
| | | | 807 | | | | | | 564 | | | | | | 243 | | | | | | 43% | | |
Adjusted EBITDA
|
| | | $ | 110 | | | | | $ | 1,353 | | | | | $ | (1,243) | | | | | | (92)% | | |
| | |
Nine Months Ended
September 30 |
| |
Change
|
| ||||||||||||||||||
(dollars in thousands)
|
| |
2021
|
| |
2020
|
| |
$
|
| |
%
|
| ||||||||||||
Net loss
|
| | | $ | (771) | | | | | $ | (9,504) | | | | | $ | 8,733 | | | | | | (92)% | | |
Depreciation and amortization
|
| | | | 2,421 | | | | | | 2,388 | | | | | | 33 | | | | | | 1% | | |
Interest expense
|
| | | | 260 | | | | | | 259 | | | | | | 1 | | | | | | —% | | |
Income tax expense (benefit)
|
| | | | 1,797 | | | | | | (298) | | | | | | 2,095 | | | | | | (703)% | | |
Board and management fees
|
| | | | 314 | | | | | | 470 | | | | | | (156) | | | | | | (33)% | | |
Non-cash addbacks(1)
|
| | | | (5,642) | | | | | | 7,661 | | | | | | (13,303) | | | | | | (174)% | | |
Stock-based compensation
|
| | | | 152 | | | | | | 112 | | | | | | 40 | | | | | | 36% | | |
Acquisition-related costs(2)
|
| | | | 268 | | | | | | 281 | | | | | | (13) | | | | | | (5)% | | |
Consulting and legal fees(3)
|
| | | | 1,151 | | | | | | 676 | | | | | | 475 | | | | | | 70% | | |
Other, net(4)
|
| | | | 572 | | | | | | 1,895 | | | | | | (1,323) | | | | | | (70)% | | |
Adjusted EBITDA
|
| | | $ | 522 | | | | | $ | 3,940 | | | | | $ | (3,418) | | | | | | (87)% | | |
| | |
Year Ended
December 31 |
| |
Change
|
| ||||||||||||||||||
(dollars in thousands)
|
| |
2020
|
| |
2019
|
| |
$
|
| |
%
|
| ||||||||||||
Net loss
|
| | | $ | (14,316) | | | | | $ | (4,021) | | | | | $ | (10,295) | | | | | | 256% | | |
Depreciation and amortization
|
| | | | 3,178 | | | | | | 2,942 | | | | | | 236 | | | | | | 8% | | |
Interest expense
|
| | | | 347 | | | | | | 3 | | | | | | 344 | | | | | | 11,467% | | |
Income tax (benefit) expense
|
| | | | (498) | | | | | | 1,383 | | | | | | (1,881) | | | | | | (136)% | | |
Board and management fees
|
| | | | 620 | | | | | | 815 | | | | | | (195) | | | | | | (24)% | | |
Non-cash addbacks(1)
|
| | | | 11,972 | | | | | | 624 | | | | | | 11,348 | | | | | | 1,819% | | |
Stock-based compensation
|
| | | | 151 | | | | | | 93 | | | | | | 58 | | | | | | 62% | | |
Acquisition-related costs(2)
|
| | | | 374 | | | | | | — | | | | | | 374 | | | | | | N/A | | |
Consulting and legal fees(3)
|
| | | | 1,494 | | | | | | — | | | | | | 1,494 | | | | | | N/A | | |
Other, net(4)
|
| | | | 2,451 | | | | | | 2,921 | | | | | | (470) | | | | | | (16)% | | |
Adjusted EBITDA
|
| | | $ | 5,773 | | | | | $ | 4,760 | | | | | $ | 1,013 | | | | | | 21% | | |
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| |
Year Ended
December 31, |
| |||||||||||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
2021
|
| |
2020
|
| |
2020
|
| |
2019
|
| ||||||||||||||||||
Revenue | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Patient services
|
| | | | 63.1% | | | | | | 62.8% | | | | | | 61.3% | | | | | | 62.8% | | | | | | 62.3% | | | | | | 62.9% | | |
Dispensary
|
| | | | 34.3% | | | | | | 34.2% | | | | | | 35.4% | | | | | | 33.5% | | | | | | 34.1% | | | | | | 32.1% | | |
Clinical trials & other
|
| | | | 2.6% | | | | | | 3.0% | | | | | | 3.3% | | | | | | 3.7% | | | | | | 3.6% | | | | | | 5.0% | | |
Total operating revenue
|
| | | | 100.0% | | | | | | 100.0% | | | | | | 100.0% | | | | | | 100.0% | | | | | | 100.0% | | | | | | 100.0% | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Direct costs – patient services
|
| | | | 48.6% | | | | | | 51.0% | | | | | | 47.8% | | | | | | 52.6% | | | | | | 51.1% | | | | | | 52.2% | | |
Direct costs – dispensary
|
| | | | 29.2% | | | | | | 28.4% | | | | | | 30.3% | | | | | | 28.1% | | | | | | 28.7% | | | | | | 28.0% | | |
Direct costs – clinical trials & other
|
| | | | 0.3% | | | | | | 0.4% | | | | | | 0.3% | | | | | | 0.6% | | | | | | 0.5% | | | | | | 0.6% | | |
Selling, general and administrative expense
|
| | | | 24.4% | | | | | | 20.1% | | | | | | 23.3% | | | | | | 19.4% | | | | | | 22.3% | | | | | | 19.1% | | |
Depreciation and amortization
|
| | | | 1.6% | | | | | | 1.7% | | | | | | 1.6% | | | | | | 1.7% | | | | | | 1.7% | | | | | | 1.9% | | |
Total operating expenses
|
| | | | 104.1% | | | | | | 101.6% | | | | | | 103.3% | | | | | | 102.4% | | | | | | 104.3% | | | | | | 101.8% | | |
Loss from operations
|
| | | | (4.1)% | | | | | | (1.6)% | | | | | | (3.3)% | | | | | | (2.4)% | | | | | | (4.3)% | | | | | | (1.8)% | | |
Other non-operating (income) expense | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense
|
| | | | 0.1% | | | | | | 0.2% | | | | | | 0.2% | | | | | | 0.2% | | | | | | 0.2% | | | | | | —% | | |
Gain on debt extinguishment
|
| | | | —% | | | | | | —% | | | | | | (3.4)% | | | | | | —% | | | | | | —% | | | | | | —% | | |
Other, net
|
| | | | (0.1)% | | | | | | (0.3)% | | | | | | (0.7)% | | | | | | 4.6% | | | | | | 3.3% | | | | | | —% | | |
Total other non-operating (income) expense
|
| | | | —% | | | | | | (0.1)% | | | | | | (3.9)% | | | | | | 4.8% | | | | | | 3.5% | | | | | | —% | | |
Loss before provision for income taxes
|
| | | | (4.1)% | | | | | | (1.5)% | | | | | | 0.6% | | | | | | (7.2)% | | | | | | (7.8)% | | | | | | (1.8)% | | |
Income tax (expense) benefit
|
| | | | (1.5)% | | | | | | —% | | | | | | (1.2)% | | | | | | 0.2% | | | | | | 0.3% | | | | | | (0.9)% | | |
Net loss
|
| | | | (5.6)% | | | | | | (1.5)% | | | | | | (0.6)% | | | | | | (7.0)% | | | | | | (7.5)% | | | | | | (2.7)% | | |
| | |
Three Months Ended
September 30, |
| |
Change
|
| ||||||||||||||||||
(dollars in thousands)
|
| |
2021
|
| |
2020
|
| |
$
|
| |
%
|
| ||||||||||||
Patient services
|
| | | $ | 32,967 | | | | | $ | 29,664 | | | | | $ | 3,303 | | | | | | 11.1% | | |
Dispensary
|
| | | | 17,918 | | | | | | 16,163 | | | | | | 1,755 | | | | | | 10.9% | | |
Clinical trials & other
|
| | | | 1,390 | | | | | | 1,423 | | | | | | (33) | | | | | | (2.3)% | | |
Total operating revenue
|
| | | $ | 52,275 | | | | | $ | 47,250 | | | | | $ | 5,025 | | | | | | 10.6% | | |
| | |
Nine Months Ended
September 30, |
| |
Change
|
| ||||||||||||||||||
(dollars in thousands)
|
| |
2021
|
| |
2020
|
| |
$
|
| |
%
|
| ||||||||||||
Patient services
|
| | | $ | 92,376 | | | | | $ | 86,986 | | | | | $ | 5,390 | | | | | | 6.2% | | |
Dispensary
|
| | | | 53,318 | | | | | | 46,347 | | | | | | 6,971 | | | | | | 15.0% | | |
Clinical trials & other
|
| | | | 5,005 | | | | | | 5,216 | | | | | | (211) | | | | | | (4.0)% | | |
Total operating revenue
|
| | | $ | 150,699 | | | | | $ | 138,549 | | | | | $ | 12,150 | | | | | | 8.8% | | |
| | |
Three Months Ended
September 30, |
| |
Change
|
| ||||||||||||||||||
(dollars in thousands)
|
| |
2021
|
| |
2020
|
| |
$
|
| |
%
|
| ||||||||||||
Direct costs – patient services
|
| | | $ | 25,391 | | | | | $ | 24,078 | | | | | $ | 1,313 | | | | | | 5.5% | | |
Direct costs – dispensary
|
| | | | 15,279 | | | | | | 13,432 | | | | | | 1,847 | | | | | | 13.8% | | |
Direct costs – clinical trials & other
|
| | | | 182 | | | | | | 166 | | | | | | 16 | | | | | | 9.6% | | |
Selling, general and administrative expense
|
| | | | 12,729 | | | | | | 9,492 | | | | | | 3,237 | | | | | | 34.1% | | |
Depreciation and amortization
|
| | | | 850 | | | | | | 792 | | | | | | 58 | | | | | | 7.3% | | |
Total operating expenses
|
| | | $ | 54,431 | | | | | $ | 47,960 | | | | | $ | 6,471 | | | | | | 13.5% | | |
| | |
Nine Months Ended
September 30, |
| |
Change
|
| ||||||||||||||||||
(dollars in thousands)
|
| |
2021
|
| |
2020
|
| |
$
|
| |
%
|
| ||||||||||||
Direct costs – patient services
|
| | | $ | 72,051 | | | | | $ | 72,830 | | | | | $ | (779) | | | | | | (1.1)% | | |
Direct costs – dispensary
|
| | | | 45,639 | | | | | | 38,896 | | | | | | 6,743 | | | | | | 17.3% | | |
Direct costs – clinical trials & other
|
| | | | 494 | | | | | | 787 | | | | | | (293) | | | | | | (37.2)% | | |
Selling, general and administrative expense
|
| | | | 35,120 | | | | | | 26,862 | | | | | | 8,258 | | | | | | 30.7% | | |
Depreciation and amortization
|
| | | | 2,422 | | | | | | 2,388 | | | | | | 34 | | | | | | 1.4% | | |
Total operating expenses
|
| | | $ | 155,726 | | | | | $ | 141,763 | | | | | $ | 13,963 | | | | | | 9.8% | | |
| | |
Three Months Ended
September 30, |
| |
Change
|
| ||||||||||||||||||
(dollars in thousands)
|
| |
2021
|
| |
2020
|
| |
$
|
| |
%
|
| ||||||||||||
Interest expense
|
| | | $ | 78 | | | | | $ | 107 | | | | | $ | (29) | | | | | | 27.1% | | |
Gain on debt extinguishment
|
| | | | — | | | | | | — | | | | | | — | | | | | | —% | | |
Other, net
|
| | | | (53) | | | | | | (119) | | | | | | 66 | | | | | | (55.5)% | | |
Total other non-operating (income) expense
|
| | | $ | 25 | | | | | $ | (12) | | | | | $ | 37 | | | | | | (308.3)% | | |
| | |
Nine Months Ended
September 30, |
| |
Change
|
| ||||||||||||||||||
(dollars in thousands)
|
| |
2021
|
| |
2020
|
| |
$
|
| |
%
|
| ||||||||||||
Interest expense
|
| | | $ | 260 | | | | | $ | 259 | | | | | $ | 1 | | | | | | 0.4% | | |
Gain on debt extinguishment
|
| | | | (5,186) | | | | | | — | | | | | $ | (5,186) | | | | | | (100.0)% | | |
Other, net
|
| | | | (1,126) | | | | | | 6,328 | | | | | | (7,454) | | | | | | (117.8)% | | |
Total other non-operating (income) expense
|
| | | $ | (6,052) | | | | | $ | 6,587 | | | | | $ | (12,639) | | | | | | (191.9)% | | |
| | |
Year Ended December 31,
|
| |
Change
|
| ||||||||||||||||||
(dollars in thousands)
|
| |
2020
|
| |
2019
|
| |
$
|
| |
%
|
| ||||||||||||
Patient services
|
| | | $ | 116,817 | | | | | $ | 97,625 | | | | | $ | 19,192 | | | | | | 19.7% | | |
Dispensary
|
| | | | 63,890 | | | | | | 49,954 | | | | | | 13,936 | | | | | | 27.9% | | |
Clinical trials & other
|
| | | | 6,808 | | | | | | 7,826 | | | | | | (1,018) | | | | | | (13.0)% | | |
Total operating revenue
|
| | | $ | 187,515 | | | | | $ | 155,405 | | | | | $ | 32,110 | | | | | | 20.7% | | |
| | |
Year Ended December 31,
|
| |
Change
|
| ||||||||||||||||||
(dollars in thousands)
|
| |
2020
|
| |
2019
|
| |
$
|
| |
%
|
| ||||||||||||
Direct costs – patient services
|
| | | $ | 95,747 | | | | | $ | 81,053 | | | | | $ | 14,694 | | | | | | 18.1% | | |
Direct costs – dispensary
|
| | | | 53,907 | | | | | | 43,456 | | | | | | 10,451 | | | | | | 24.0% | | |
Direct costs – clinical trials & other
|
| | | | 982 | | | | | | 955 | | | | | | 27 | | | | | | 2.8% | | |
Selling, general and administrative expense
|
| | | | 41,897 | | | | | | 29,644 | | | | | | 12,253 | | | | | | 41.3% | | |
Depreciation and amortization
|
| | | | 3,178 | | | | | | 2,942 | | | | | | 236 | | | | | | 8.0% | | |
Total operating expenses
|
| | | $ | 195,711 | | | | | $ | 158,050 | | | | | $ | 37,661 | | | | | | 23.8% | | |
| | |
Year Ended
December 31, |
| |
Change
|
| ||||||||||||||||||
(dollars in thousands)
|
| |
2020
|
| |
2019
|
| |
$
|
| |
%
|
| ||||||||||||
Interest expense
|
| | | $ | 347 | | | | | $ | 3 | | | | | $ | 344 | | | | | | 11,466.7% | | |
Other, net
|
| | | | 6,271 | | | | | | (10) | | | | | | 6,281 | | | | | | (62,810.0)% | | |
Total other non-operating expense (income)
|
| | | $ | 6,618 | | | | | $ | (7) | | | | | $ | 6,625 | | | | | | (94,642.9)% | | |
| | |
Nine Months Ended
September 30, |
| |
Change
|
| ||||||||||||||||||
(dollars in thousands)
|
| |
2021
|
| |
2020
|
| |
$
|
| |
%
|
| ||||||||||||
Net cash (used in) provided by operating activities
|
| | | $ | (9,345) | | | | | $ | 1,384 | | | | | $ | (10,729) | | | | | | (775.2)% | | |
Net cash used in investing activities
|
| | | | (3,003) | | | | | | (8,486) | | | | | | 5,483 | | | | | | (64.6)% | | |
Net cash provided by financing activities
|
| | | | 17,882 | | | | | | 11,937 | | | | | | 5,945 | | | | | | 49.8% | | |
Net increase in cash
|
| | | | 5,534 | | | | | | 4,835 | | | | | | 699 | | | | | | 14.5% | | |
Cash at beginning of period
|
| | | | 5,998 | | | | | | 2,446 | | | | | | 3,552 | | | | | | 145.2% | | |
Cash at end of period
|
| | | $ | 11,532 | | | | | $ | 7,281 | | | | | $ | 4,251 | | | | | | 58.4% | | |
| | |
Year Ended
December 31, |
| |
Change
|
| ||||||||||||||||||
(dollars in thousands)
|
| |
2020
|
| |
2019
|
| |
$
|
| |
%
|
| ||||||||||||
Net cash provided by (used in) operating activities
|
| | | $ | 508 | | | | | $ | 3,615 | | | | | $ | (3,107) | | | | | | (85.9)% | | |
Net cash (used in) provided by investing activities
|
| | | | (8,844) | | | | | | (1,205) | | | | | | (7,639) | | | | | | 633.9% | | |
Net cash provided by (used in) financing activities
|
| | | | 11,887 | | | | | | (2) | | | | | | 11,889 | | | | | | (594,450.0)% | | |
Net increase (decrease) in cash
|
| | | | 3,551 | | | | | | 2,408 | | | | | | 1,143 | | | | | | 47.5% | | |
Cash at beginning of year
|
| | | | 2,446 | | | | | | 37 | | | | | | 2,409 | | | | | | 6,510.8% | | |
Cash at end of year
|
| | | $ | 5,997 | | | | | $ | 2,445 | | | | | $ | 3,552 | | | | | | 145.3% | | |
| | |
California
|
| |
Arizona
|
| |
Nevada
|
| |
Florida
|
| ||||||||||||
Markets
|
| | | | 6 | | | | | | 1 | | | | | | 1 | | | | | | 2 | | |
Managed and Affiliated Clinics
|
| | | | 49(1) | | | | | | 5 | | | | | | 3 | | | | | | 5 | | |
Providers
|
| | | | 74 | | | | | | 4 | | | | | | 3 | | | | | | 9 | | |
Name
|
| |
Age
|
| |
Position
|
| |||
Executive Officers | | | | | | | | | | |
Brad Hively | | | | | 42 | | | |
Chief Executive Officer and Director
|
|
Daniel Virnich | | | | | 43 | | | | Chief Operating Officer | |
Scott Dalgleish | | | | | 42 | | | | Chief Financial Officer | |
Yale Podnos | | | | | 50 | | | | Chief Medical Officer | |
Non-Employee Directors | | | | | | | | | | |
Richard Barasch | | | | | 67 | | | | Director | |
Karen Johnson | | | | | 60 | | | | Director | |
Mohit Kaushal | | | | | 40 | | | | Director | |
Anne McGeorge | | | | | 60 | | | | Director | |
Maeve O’Meara | | | | | 40 | | | | Director | |
Ravi Sarin | | | | | 40 | | | | Director | |
Name and Principal
Position |
| |
Year
|
| |
Salary ($)(1)
|
| |
Bonus ($)(2)
|
| |
Stock Awards(3)
|
| |
Option
Awards ($)(4) |
| |
Non-Equity
Incentive Plan Compensation ($)(5) |
| |
All Other
Compensation ($)(6) |
| |
Total
|
| ||||||||||||||||||||||||
Brad Hively
|
| | | | 2021 | | | | | | 430,768 | | | | | | 49,987 | | | | | | 2,614,116 | | | | | | 8,396,264 | | | | | | 132,800 | | | | | | 11,600 | | | | | | 11,635,536 | | |
| | | | | 2020 | | | | | | 400,000 | | | | | | 11,228 | | | | | | — | | | | | | — | | | | | | 188,772 | | | | | | 11,400 | | | | | | 611,400 | | |
Daniel Virnich
|
| | | | 2021 | | | | | | 262,500 | | | | | | 14,351 | | | | | | 1,443,965 | | | | | | 5,884,101 | | | | | | 20,750 | | | | | | — | | | | | | 7,625,667 | | |
| | | | | 2020 | | | | | | 213,542 | | | | | | — | | | | | | — | | | | | | 176,187 | | | | | | 28,955 | | | | | | — | | | | | | 418,684 | | |
Scott Dalgleish
|
| | | | 2021 | | | | | | 250,000 | | | | | | 4,171 | | | | | | 879,502 | | | | | | 3,571,918 | | | | | | 41,500 | | | | | | 11,600 | | | | | | 4,758,691 | | |
| | | | | 2020 | | | | | | 76,515 | | | | | | — | | | | | | — | | | | | | 232,944 | | | | | | 8,124 | | | | | | — | | | | | | 317,583 | | |
| | | | | | | | |
Option Awards
|
| |
Stock Awards
|
| ||||||||||||||||||||||||||||||||||||||||||||||||
Name
|
| |
Grant Date
|
| |
Number of
Securities Underlying Unexercised Options (#) Exercisable |
| |
Number of
Securities Underlying Unexercised Options (#) Unexercisable |
| |
Equity Incentive
Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#) |
| |
Option
Exercise Price ($) |
| |
Option
Expiration Date |
| |
Number of
Shares or Units of Stock That Have Not Vested (#) |
| |
Market
Value of Shares or Units of Stock That Have Not Vested ($) |
| |
Equity
Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#) |
| |
Equity
Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($) |
| ||||||||||||||||||||||||||||||
Brad Hively
|
| | | | 12/2/2019(1) | | | | | | 496,729 | | | | | | 496,731 | | | | | | — | | | | | $ | 0.85 | | | | | | 12/2/2029 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | | | | 12/2/2019(2) | | | | | | 22,888 | | | | | | 801,083 | | | | | | — | | | | | $ | 0.85 | | | | | | 12/2/2029 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | | | | 11/12/2021(3) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 141,380 | | | | | $ | 1,378,455 | | | | | | — | | | | | | — | | |
| | | | | 11/12/2021(4) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 212,070 | | | | | $ | 2,067,683 | | | | | | — | | | | | | — | | |
Daniel Virnich
|
| | | | 3/1/2020(1) | | | | | | 186,633 | | | | | | 239,970 | | | | | | — | | | | | $ | 0.86 | | | | | | 3/1/2030 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | | | | 3/1/2020(2) | | | | | | 16,055 | | | | | | 561,951 | | | | | | — | | | | | $ | 0.86 | | | | | | 3/1/2030 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | | | | 11/12/2021(3) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 78,094 | | | | | $ | 761,417 | | | | | | — | | | | | | — | | |
| | | | | 11/12/2021(4) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 117,142 | | | | | $ | 1,142,135 | | | | | | — | | | | | | — | | |
Scott Dalgleish
|
| | | | 11/16/2020(1) | | | | | | 70,692 | | | | | | 190,331 | | | | | | — | | | | | $ | 0.86 | | | | | | 11/16/2030 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | | | | 11/16/2020(2) | | | | | | 9,746 | | | | | | 341,130 | | | | | | — | | | | | $ | 0.86 | | | | | | 11/16/2030 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | | | | 11/12/2021(3) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 47,566 | | | | | $ | 463,769 | | | | | | — | | | | | | — | | |
| | | | | 11/12/2021(4) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 71,350 | | | | | $ | 695,663 | | | | | | — | | | | | | — | | |
Name and Address of Beneficial Owner(1)
|
| |
Number of
Shares of Common Stock |
| |
% of
Ownership |
| ||||||
5% Holders | | | | | | | | | | | | | |
TOI HC I, LLC(1)
|
| | | | 15,662,794 | | | | | | 21.4% | | |
M33 Growth I L.P.(2)
|
| | | | 15,256,383 | | | | | | 20.8% | | |
FMR LLC(3)
|
| | | | 12,000,000 | | | | | | 16.4% | | |
Jimmy Holdings, Inc.(4)
|
| | | | 8,612,253 | | | | | | 11.8% | | |
FOG Ventures Investments, LLC(5)
|
| | | | 4,634,908 | | | | | | 6.3% | | |
OncologyCare Partners, LLC(6)
|
| | | | 4,109,771 | | | | | | 5.6% | | |
Directors and Executive Officers(7) | | | | | | | | | | | | | |
Brad Hively(8)
|
| | | | 916,652 | | | | | | 1.2% | | |
Daniel Virnich(9)
|
| | | | 422,866 | | | | | | * | | |
Scott Dalgleish(10)
|
| | | | 209,100 | | | | | | * | | |
Yale Podnos(11)
|
| | | | 63,024 | | | | | | * | | |
Richard Barasch(12)
|
| | | | 1,598,949 | | | | | | 2.1% | | |
Karen Johnson
|
| | | | — | | | | | | — | | |
Mohit Kaushal(13)
|
| | | | 25,534 | | | | | | * | | |
Anne McGeorge
|
| | | | — | | | | | | — | | |
Maeve O’Meara
|
| | | | — | | | | | | —% | | |
Ravi Sarin(6)
|
| | | | 4,109,771 | | | | | | 5.4% | | |
All directors and executive officers as a group (10 individuals)
|
| | | | 7,345,896 | | | | | | 9.7% | | |
| | |
Securities Beneficially
Owned prior to this Offering |
| |
Securities to be
Sold in this Offering |
| |
Shares Beneficially
Owned after this Offering+ |
| |||||||||||||||||||||||||||||||||||||||
Names and Addresses
|
| |
Shares of
Common Stock |
| |
Warrants
|
| |
Shares of
Common Stock |
| |
Warrants
|
| |
Shares of
Common Stock |
| |
Percentage
|
| |
Warrants
|
| |
Percentage
|
| ||||||||||||||||||||||||
Empery Tax Efficient, LP(1a)
|
| | | | 35,272 | | | | | | — | | | | | | 35,272 | | | | | | — | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
Empery Tax Efficient III, LP(1b)
|
| | | | 33,251 | | | | | | — | | | | | | 33,251 | | | | | | — | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
Empery Asset Master, LTD
(1c)
|
| | | | 131,477 | | | | | | — | | | | | | 131,477 | | | | | | — | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
Dev Naik L.L.C.(2)
|
| | | | 800,000 | | | | | | — | | | | | | 800,000 | | | | | | — | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
Variable Insurance Products Fund III: VIP Growth Opportunities Portfolio(3)
|
| | | | 112,536 | | | | | | — | | | | | | 112,536 | | | | | | — | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
Fidelity Capital Trust: Fidelity Stock Selector Small Cap Fund(4)
|
| | | | 373,842 | | | | | | — | | | | | | 373,842 | | | | | | — | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
Variable Insurance Products
Fund IV: VIP Health Care Portfolio(5) |
| | | | 282,701 | | | | | | — | | | | | | 282,701 | | | | | | — | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
Fidelity Advisor Series I: Fidelity Advisor Series Growth Opportunities Fund(6)
|
| | | | 28,268 | | | | | | — | | | | | | 28,268 | | | | | | — | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
Fidelity Advisor Series I: Fidelity Advisor Growth Opportunities Fund(4)
|
| | | | 814,767 | | | | | | — | | | | | | 814,767 | | | | | | — | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
Fidelity Advisor Series VII: Fidelity Advisor Health Care Fund(4)
|
| | | | 1,472,782 | | | | | | — | | | | | | 1,472,782 | | | | | | — | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
Fidelity Growth Company Commingled Pool (4)
|
| | | | 2,110,757 | | | | | | — | | | | | | 2,110,757 | | | | | | — | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
Fidelity NorthStar Fund –
Sub D(7) |
| | | | 33,024 | | | | | | — | | | | | | 33,024 | | | | | | — | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
| | |
Securities Beneficially
Owned prior to this Offering |
| |
Securities to be
Sold in this Offering |
| |
Shares Beneficially
Owned after this Offering+ |
| |||||||||||||||||||||||||||||||||||||||
Names and Addresses
|
| |
Shares of
Common Stock |
| |
Warrants
|
| |
Shares of
Common Stock |
| |
Warrants
|
| |
Shares of
Common Stock |
| |
Percentage
|
| |
Warrants
|
| |
Percentage
|
| ||||||||||||||||||||||||
Fidelity Mt. Vernon Street Trust: Fidelity Series Growth Company Fund(4)
|
| | | | 377,375 | | | | | | — | | | | | | 377,375 | | | | | | — | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
Fidelity Mt. Vernon Street Trust: Fidelity Growth Company K6 Fund(8)
|
| | | | 446,788 | | | | | | — | | | | | | 446,788 | | | | | | — | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
Fidelity Mt. Vernon Street Trust: Fidelity Growth Company Fund(8)
|
| | | | 1,815,080 | | | | | | — | | | | | | 1,815,080 | | | | | | — | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
Fidelity Select Portfolios: Select Health Care Portfolio(4)
|
| | | | 2,232,581 | | | | | | — | | | | | | 2,232,581 | | | | | | — | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
Fidelity Securities Fund: Fidelity Series Small Cap Opportunities Fund(4)
|
| | | | 1,126,158 | | | | | | — | | | | | | 1,126,158 | | | | | | — | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
Fidelity Central Investment Portfolios LLC: Fidelity U.S. Equity Central Fund – Health Care Sub(9)
|
| | | | 761,936 | | | | | | — | | | | | | 761,936 | | | | | | — | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
Fidelity U.S. Growth Opportunities Investment Trust(10)
|
| | | | 11,405 | | | | | | — | | | | | | 11,405 | | | | | | — | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
CVI Investments, Inc.(11)
|
| | | | 200,000 | | | | | | — | | | | | | 200,000 | | | | | | — | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
Hongkou Capital Master LP(12)
|
| | | | 400,000 | | | | | | — | | | | | | 400,000 | | | | | | — | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
Parian Global Management
LP(13) |
| | | | 400,000 | | | | | | — | | | | | | 400,000 | | | | | | — | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
Entities affiliated with Redmile Group, LLC (14)
|
| | | | 2,500,000 | | | | | | — | | | | | | 2,500,000 | | | | | | — | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
Velan Capital
Partners LP(15) |
| | | | 600,000 | | | | | | — | | | | | | 600,000 | | | | | | — | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
Saba Capital SPAC Opportunities Ltd.(16)
|
| | | | 6,444 | | | | | | — | | | | | | 6,444 | | | | | | — | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
Saba Capital Master Fund,
Ltd.(16) |
| | | | 102,657 | | | | | | — | | | | | | 102,657 | | | | | | — | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
Saba Capital Master Fund II,
Ltd.(16) |
| | | | 259,331 | | | | | | — | | | | | | 259,331 | | | | | | — | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
Saba Capital Master Fund III, LP(16)
|
| | | | 31,568 | | | | | | — | | | | | | 31,568 | | | | | | — | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
Deerfield Partners, L.P.(17)
|
| | | | 10,988,683 | | | | | | 1,800,690 | | | | | | 10,476,373 | | | | | | 1,800,690 | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
Deerfield Private Design Fund IV, L.P.(18)
|
| | | | 10,988,583 | | | | | | 1,800,690 | | | | | | 10,476,373 | | | | | | 1,800,690 | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
M33 Growth I L.P.(19)
|
| | | | 16,613,091 | | | | | | — | | | | | | 16,613,091 | | | | | | — | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
TOI M, LLC(19)
|
| | | | 1,882,189 | | | | | | — | | | | | | 1,882,189 | | | | | | — | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
TOI HC I, LLC(20)
|
| | | | 18,987,971 | | | | | | — | | | | | | 18,987,971 | | | | | | — | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
| | |
Securities Beneficially
Owned prior to this Offering |
| |
Securities to be
Sold in this Offering |
| |
Shares Beneficially
Owned after this Offering+ |
| |||||||||||||||||||||||||||||||||||||||
Names and Addresses
|
| |
Shares of
Common Stock |
| |
Warrants
|
| |
Shares of
Common Stock |
| |
Warrants
|
| |
Shares of
Common Stock |
| |
Percentage
|
| |
Warrants
|
| |
Percentage
|
| ||||||||||||||||||||||||
Oncology Care Partners, LLC(21)
|
| | | | 4,982,266 | | | | | | — | | | | | | 4,982,266 | | | | | | — | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
Jimmy Holdings, Inc.(22)
|
| | | | 10,440,616 | | | | | | — | | | | | | 10,440,616 | | | | | | — | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
Agajanian Holdings,
LLC(22) |
| | | | 614,479 | | | | | | — | | | | | | 614,479 | | | | | | — | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
Richard Barasch(23)
|
| | | | 1,598,949 | | | | | | 621,527 | | | | | | 1,598,949 | | | | | | 621,527 | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
Steven Hochberg(24)
|
| | | | 85,113 | | | | | | — | | | | | | 85,113 | | | | | | — | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
Christopher Wolfe(25)
|
| | | | 394,716 | | | | | | 127,102 | | | | | | 394,716 | | | | | | 127,102 | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
Jennifer Carter(26)
|
| | | | 25,534 | | | | | | — | | | | | | 25,534 | | | | | | — | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
Mohit Kaushal(27)
|
| | | | 25,534 | | | | | | — | | | | | | 25,534 | | | | | | — | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
Gregory Sorensen(28)
|
| | | | 25,534 | | | | | | — | | | | | | 25,534 | | | | | | — | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
Gary Davis 1995 Trust for Children(29)
|
| | | | 65,700 | | | | | | 45,757 | | | | | | 65,700 | | | | | | 45,757 | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
Jane B. Hankin(30)
|
| | | | 22,800 | | | | | | 15,888 | | | | | | 22,800 | | | | | | 15,888 | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
Anthony Wolk(29)
|
| | | | 22,800 | | | | | | 15,888 | | | | | | 22,800 | | | | | | 15,888 | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
Brad Hively(32)
|
| | | | 916,652 | | | | | | — | | | | | | 2,170,881 | | | | | | — | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
Daniel Virnich(33)
|
| | | | 422,866 | | | | | | — | | | | | | 1,199,845 | | | | | | — | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
Yale Podnos(34)
|
| | | | 63,024 | | | | | | — | | | | | | 174,522 | | | | | | — | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
Scott Dalgleish(35)
|
| | | | 209,100 | | | | | | — | | | | | | 730,815 | | | | | | — | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | |
| | |
Fair Market Value of Class A Common Stock
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||
Redemption Date (period to expiration of warrants)
|
| |
10.00
|
| |
11.00
|
| |
12.00
|
| |
13.00
|
| |
14.00
|
| |
15.00
|
| |
16.00
|
| |
17.00
|
| |
18.00
|
| |||||||||||||||||||||||||||
57 months
|
| | | | 0.257 | | | | | | 0.277 | | | | | | 0.294 | | | | | | 0.310 | | | | | | 0.324 | | | | | | 0.337 | | | | | | 0.348 | | | | | | 0.358 | | | | | | 0.365 | | |
54 months
|
| | | | 0.252 | | | | | | 0.272 | | | | | | 0.291 | | | | | | 0.307 | | | | | | 0.322 | | | | | | 0.335 | | | | | | 0.347 | | | | | | 0.357 | | | | | | 0.365 | | |
51 months
|
| | | | 0.246 | | | | | | 0.268 | | | | | | 0.287 | | | | | | 0.304 | | | | | | 0.320 | | | | | | 0.333 | | | | | | 0.346 | | | | | | 0.357 | | | | | | 0.365 | | |
48 months
|
| | | | 0.241 | | | | | | 0.263 | | | | | | 0.283 | | | | | | 0.301 | | | | | | 0.317 | | | | | | 0.332 | | | | | | 0.344 | | | | | | 0.356 | | | | | | 0.365 | | |
45 months
|
| | | | 0.235 | | | | | | 0.258 | | | | | | 0.279 | | | | | | 0.298 | | | | | | 0.315 | | | | | | 0.330 | | | | | | 0.343 | | | | | | 0.356 | | | | | | 0.365 | | |
42 months
|
| | | | 0.228 | | | | | | 0.252 | | | | | | 0.274 | | | | | | 0.294 | | | | | | 0.312 | | | | | | 0.328 | | | | | | 0.342 | | | | | | 0.355 | | | | | | 0.364 | | |
39 months
|
| | | | 0.221 | | | | | | 0.246 | | | | | | 0.269 | | | | | | 0.290 | | | | | | 0.309 | | | | | | 0.325 | | | | | | 0.340 | | | | | | 0.354 | | | | | | 0.364 | | |
36 months
|
| | | | 0.213 | | | | | | 0.239 | | | | | | 0.263 | | | | | | 0.285 | | | | | | 0.305 | | | | | | 0.323 | | | | | | 0.339 | | | | | | 0.353 | | | | | | 0.364 | | |
33 months
|
| | | | 0.205 | | | | | | 0.232 | | | | | | 0.257 | | | | | | 0.280 | | | | | | 0.301 | | | | | | 0.320 | | | | | | 0.337 | | | | | | 0.352 | | | | | | 0.364 | | |
30 months
|
| | | | 0.196 | | | | | | 0.224 | | | | | | 0.250 | | | | | | 0.274 | | | | | | 0.297 | | | | | | 0.316 | | | | | | 0.335 | | | | | | 0.351 | | | | | | 0.364 | | |
27 months
|
| | | | 0.185 | | | | | | 0.214 | | | | | | 0.242 | | | | | | 0.268 | | | | | | 0.291 | | | | | | 0.313 | | | | | | 0.332 | | | | | | 0.350 | | | | | | 0.364 | | |
24 months
|
| | | | 0.173 | | | | | | 0.204 | | | | | | 0.233 | | | | | | 0.260 | | | | | | 0.285 | | | | | | 0.308 | | | | | | 0.329 | | | | | | 0.348 | | | | | | 0.364 | | |
21 months
|
| | | | 0.161 | | | | | | 0.193 | | | | | | 0.223 | | | | | | 0.252 | | | | | | 0.279 | | | | | | 0.304 | | | | | | 0.326 | | | | | | 0.347 | | | | | | 0.364 | | |
18 months
|
| | | | 0.146 | | | | | | 0.179 | | | | | | 0.211 | | | | | | 0.242 | | | | | | 0.271 | | | | | | 0.298 | | | | | | 0.322 | | | | | | 0.345 | | | | | | 0.363 | | |
15 months
|
| | | | 0.130 | | | | | | 0.164 | | | | | | 0.197 | | | | | | 0.230 | | | | | | 0.262 | | | | | | 0.291 | | | | | | 0.317 | | | | | | 0.342 | | | | | | 0.363 | | |
12 months
|
| | | | 0.111 | | | | | | 0.146 | | | | | | 0.181 | | | | | | 0.216 | | | | | | 0.250 | | | | | | 0.282 | | | | | | 0.312 | | | | | | 0.339 | | | | | | 0.363 | | |
9 months
|
| | | | 0.090 | | | | | | 0.125 | | | | | | 0.162 | | | | | | 0.199 | | | | | | 0.237 | | | | | | 0.272 | | | | | | 0.305 | | | | | | 0.336 | | | | | | 0.362 | | |
6 months
|
| | | | 0.065 | | | | | | 0.099 | | | | | | 0.137 | | | | | | 0.178 | | | | | | 0.219 | | | | | | 0.259 | | | | | | 0.296 | | | | | | 0.331 | | | | | | 0.362 | | |
3 months
|
| | | | 0.034 | | | | | | 0.065 | | | | | | 0.104 | | | | | | 0.150 | | | | | | 0.197 | | | | | | 0.243 | | | | | | 0.286 | | | | | | 0.326 | | | | | | 0.361 | | |
0 months
|
| | | | — | | | | | | — | | | | | | 0.042 | | | | | | 0.115 | | | | | | 0.179 | | | | | | 0.233 | | | | | | 0.281 | | | | | | 0.323 | | | | | | 0.361 | | |
| | |
Page
|
| |||
Condensed Consolidated Financial Statements as of September 30, 2021 and December 31, 2020 and for the nine months ended September 30, 2021 and 2020
|
| | | | | | |
| | | | F-4 | | | |
| | | | F-5 | | | |
| | | | F-6 | | | |
| | | | F-7 | | | |
| | | | F-8 | | | |
Audited Financial Statements for the years ended December 31, 2020, 2019 and the periods from September 20, 2018 through December 31, 2018 (Successor Periods) and from January 1, 2018 through September 19, 2018 (Predecessor Periods)
|
| | | | | | |
| | | | F-31 | | | |
| | | | F-32 | | | |
| | | | F-33 | | | |
| | | | F-34 | | | |
| | | | F-35 | | | |
| | | | F-36 | | |
| | |
Page
|
| |||
Unaudited Condensed Consolidated Financial Statements | | | | | | | |
| | | | F-68 | | | |
| | | | F-69 | | | |
| | | | F-70 | | | |
| | | | F-71 | | | |
| | | | F-72 | | |
| | |
Page
|
| |||
Audited Financial Statements for the year ended December 31, 2020 (As Restated) and for the period
from November 1, 2019 (inception) through December 31, 2019 |
| | | | | | |
| | | | F-90 | | | |
| | | | F-91 | | | |
| | | | F-92 | | | |
| | | | F-93 | | | |
| | | | F-94 | | | |
| | | | F-95 | | |
| | |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
Assets | | | | | | | | | | | | | |
Current assets:
|
| | | | | | | | | | | | |
Cash
|
| | | $ | 11,531,997 | | | | | $ | 5,997,530 | | |
Accounts receivable
|
| | | | 22,256,605 | | | | | | 17,145,910 | | |
Other receivables
|
| | | | 581,451 | | | | | | 112,663 | | |
Inventories, net
|
| | | | 5,756,578 | | | | | | 4,354,232 | | |
Prepaid expenses
|
| | | | 2,077,045 | | | | | | 2,109,256 | | |
Deferred transaction costs
|
| | | | 9,094,029 | | | | | | — | | |
Total current assets
|
| | | | 51,297,705 | | | | | | 29,719,591 | | |
Property and equipment, net
|
| | | | 3,517,179 | | | | | | 2,104,225 | | |
Intangible assets, net
|
| | | | 18,156,667 | | | | | | 19,515,569 | | |
Goodwill
|
| | | | 15,680,160 | | | | | | 14,226,674 | | |
Other assets
|
| | | | 250,420 | | | | | | 122,509 | | |
Deferred income taxes asset
|
| | | | 1,925,196 | | | | | | — | | |
Total assets
|
| | | $ | 90,827,327 | | | | | $ | 65,688,568 | | |
Liabilities and stockholders’ deficit | | | | | | | | | | | | | |
Current liabilities:
|
| | | | | | | | | | | | |
Current portion of long-term debt
|
| | | $ | 4,895,275 | | | | | $ | 5,367,758 | | |
Accounts payable
|
| | | | 19,013,532 | | | | | | 12,643,024 | | |
Income taxes payable
|
| | | | 6,159,079 | | | | | | 1,143,956 | | |
Accrued expenses and other current liabilities
|
| | | | 11,758,211 | | | | | | 9,452,120 | | |
Total current liabilities
|
| | | | 41,826,097 | | | | | | 28,606,858 | | |
Long-term debt, net of unamortized debt issuance costs and current portion
|
| | | | — | | | | | | 6,561,238 | | |
Other non-current liabilities
|
| | | | 1,517,844 | | | | | | 806,186 | | |
Deferred income taxes liability
|
| | | | — | | | | | | 1,612,769 | | |
Total liabilities
|
| | | | 43,343,941 | | | | | | 37,587,051 | | |
6% cumulative preferred shares, $0.001 par value. Authorized 20,000
shares; 11,451 shares issued and outstanding at September 30, 2021 and 10,000 issued and outstanding at December 31, 2020 |
| | | | 100,113,700 | | | | | | 80,113,700 | | |
Stockholders’ deficit: | | | | | | | | | | | | | |
Common shares, $0.0001 par value. Authorized 400,000 shares; 100
shares issued and outstanding at September 30, 2021 and December 31, 2020 |
| | | | — | | | | | | — | | |
Additional paid-in capital
|
| | | | 447,030 | | | | | | 294,413 | | |
Accumulated deficit
|
| | | | (53,077,344) | | | | | | (52,306,596) | | |
Total stockholders’ deficit
|
| | | | (52,630,314) | | | | | | (52,012,183) | | |
Total liabilities, cumulative preferred shares and stockholders’ deficit
|
| | | $ | 90,827,327 | | | | | $ | 65,688,568 | | |
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
|
2021
|
| |
2020
|
| |
2021
|
| |
2020
|
| ||||||||||||||
Revenue | | | | | | | | | | | | | | | | | | | | | | | | | |
Patient services
|
| | | $ | 32,967,401 | | | | | $ | 29,663,884 | | | | | $ | 92,375,768 | | | | | $ | 86,985,513 | | |
Dispensary
|
| | | | 17,918,035 | | | | | | 16,162,528 | | | | | | 53,317,877 | | | | | | 46,347,096 | | |
Clinical trials & other
|
| | | | 1,389,522 | | | | | | 1,423,032 | | | | | | 5,004,889 | | | | | | 5,216,372 | | |
Total operating revenue
|
| | | | 52,274,958 | | | | | | 47,249,444 | | | | | | 150,698,534 | | | | | | 138,548,981 | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Direct costs – patient services
|
| | | | 25,390,950 | | | | | | 24,078,152 | | | | | | 72,050,631 | | | | | | 72,830,254 | | |
Direct costs – dispensary
|
| | | | 15,279,173 | | | | | | 13,431,738 | | | | | | 45,639,083 | | | | | | 38,896,324 | | |
Direct costs – clinical trials & other
|
| | | | 182,230 | | | | | | 166,238 | | | | | | 493,988 | | | | | | 786,992 | | |
Selling, general and administrative expense
|
| | | | 12,729,425 | | | | | | 9,492,069 | | | | | | 35,119,854 | | | | | | 26,861,651 | | |
Depreciation and amortization
|
| | | | 850,199 | | | | | | 792,475 | | | | | | 2,421,577 | | | | | | 2,388,219 | | |
Total operating expenses
|
| | | | 54,431,977 | | | | | | 47,960,672 | | | | | | 155,725,133 | | | | | | 141,763,440 | | |
Loss from operations
|
| | | | (2,157,019) | | | | | | (711,228) | | | | | | (5,026,599) | | | | | | (3,214,459) | | |
Other non-operating (income) expense | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense
|
| | | | 77,983 | | | | | | 107,143 | | | | | | 259,894 | | | | | | 259,013 | | |
Gain on debt extinguishment
|
| | | | — | | | | | | — | | | | | | (5,186,341) | | | | | | — | | |
Other, net
|
| | | | (53,383) | | | | | | (119,233) | | | | | | (1,125,527) | | | | | | 6,328,119 | | |
Total other non-operating (income) expense
|
| | | | 24,600 | | | | | | (12,090) | | | | | | (6,051,974) | | | | | | 6,587,132 | | |
| | | | | | | | | | | | | | | | | | | | | | ||||
(Loss) income before provision for income taxes
|
| | | | (2,181,619) | | | | | | (699,138) | | | | | | 1,025,375 | | | | | | (9,801,591) | | |
Income tax (expense) benefit
|
| | | | (798,504) | | | | | | 23,190 | | | | | | (1,796,123) | | | | | | 298,102 | | |
Net loss
|
| | | $ | (2,980,123) | | | | | $ | (675,948) | | | | | $ | (770,748) | | | | | $ | (9,503,489) | | |
Loss per share attributable to TOI Parent, Inc. common stockholders:
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted
|
| | | $ | (26.03) | | | | | $ | (67.59) | | | | | $ | (6.73) | | | | | $ | (950.35) | | |
Weighted average number of shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted
|
| | | | 114,510 | | | | | | 10,000 | | | | | | 114,510 | | | | | | 10,000 | | |
| | |
Cumulative Preferred
Shares |
| |
Common Shares
|
| |
Additional
Paid in Capital |
| |
Accumulated
Deficit |
| |
Total
Stockholders’ Deficit |
| |||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
Balance at December, 31, 2019
|
| | | | 10,000 | | | | | $ | 48,143,362 | | | | | | — | | | | | | — | | | | | $ | 94,007 | | | | | $ | (6,015,023) | | | | | $ | (5,921,016) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (9,845,729) | | | | | | (9,845,729) | | |
Share-based compensation expense
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 34,106 | | | | | | — | | | | | | 34,106 | | |
Balance at March 31, 2020
|
| | | | 10,000 | | | | | | 48,143,362 | | | | | | — | | | | | | — | | | | | | 128,113 | | | | | | (15,860,752) | | | | | | (15,732,639) | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,018,188 | | | | | | 1,018,188 | | |
Share-based compensation expense
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 42,220 | | | | | | — | | | | | | 42,220 | | |
Balance at June 30, 2020
|
| | | | 10,000 | | | | | | 48,143,362 | | | | | | — | | | | | | — | | | | | | 170,333 | | | | | | (14,842,564) | | | | | | (14,672,231) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (675,948) | | | | | | (675,948) | | |
Share-based compensation expense
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 36,343 | | | | | | — | | | | | | 36,343 | | |
Balance at September 30, 2020
|
| | | | 10,000 | | | | | $ | 48,143,362 | | | | | | — | | | | | | — | | | | | $ | 206,676 | | | | | $ | (15,518,512) | | | | | $ | (15,311,836) | | |
| | |
Cumulative Preferred
Shares |
| |
Common Shares
|
| |
Additional
Paid in Capital |
| |
Accumulated
Deficit |
| |
Total
Stockholders’ Deficit |
| |||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
Balance at December, 31, 2020
|
| | | | 10,000 | | | | | $ | 80,113,700 | | | | | | 100 | | | | | | — | | | | | $ | 294,413 | | | | | $ | (52,306,596) | | | | | $ | (52,012,183) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (994,650) | | | | | | (994,650) | | |
Series A Preferred Shares issued
|
| | | | 1,451 | | | | | | 20,000,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Share-based compensation expense
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 41,667 | | | | | | — | | | | | | 41,667 | | |
Balance at March 31, 2021
|
| | | | 11,451 | | | | | | 100,113,700 | | | | | | 100 | | | | | | — | | | | | | 336,080 | | | | | | (53,301,246) | | | | | | (52,965,166) | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,204,025 | | | | | | 3,204,025 | | |
Share-based compensation expense
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 51,272 | | | | | | — | | | | | | 51,272 | | |
Balance at June 30, 2021
|
| | | | 11,451 | | | | | | 100,113,700 | | | | | | 100 | | | | | | — | | | | | | 387,352 | | | | | | (50,097,221) | | | | | | (49,709,869) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,980,123) | | | | | | (2,980,123) | | |
Share-based compensation expense
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 59,678 | | | | | | — | | | | | | 59,678 | | |
Balance at September 30, 2021
|
| | | | 11,451 | | | | | $ | 100,113,700 | | | | | | 100 | | | | | | — | | | | | $ | 447,030 | | | | | $ | (53,077,344) | | | | | $ | (52,630,314) | | |
| | |
Nine Months Ended September 30,
|
| |||||||||
|
2021
|
| |
2020
|
| ||||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net loss
|
| | | $ | (770,748) | | | | | $ | (9,503,489) | | |
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:
|
| | | | | | | | | | | | |
Depreciation and amortization
|
| | | | 2,421,577 | | | | | | 2,388,219 | | |
Amortization of debt issuance costs
|
| | | | 52,787 | | | | | | 41,950 | | |
Impairment loss
|
| | | | — | | | | | | 7,500,000 | | |
Share-based compensation
|
| | | | 152,617 | | | | | | 112,669 | | |
Deferred taxes
|
| | | | (3,537,965) | | | | | | (888,897) | | |
Gain on debt extinguishment
|
| | | | (5,186,341) | | | | | | — | | |
Bad debt recovery, net
|
| | | | (667,099) | | | | | | — | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Accounts receivable
|
| | | | (4,194,781) | | | | | | (4,142,477) | | |
Inventories
|
| | | | (1,339,690) | | | | | | (782,278) | | |
Other receivables
|
| | | | (319,390) | | | | | | 55,906 | | |
Prepaid expenses
|
| | | | 32,211 | | | | | | (982,021) | | |
Other current assets
|
| | | | (9,094,029) | | | | | | — | | |
Other assets
|
| | | | (127,911) | | | | | | (16,075) | | |
Accrued expenses and other current liabilities
|
| | | | 1,431,749 | | | | | | 5,067,777 | | |
Income taxes payable
|
| | | | 5,015,123 | | | | | | 532,044 | | |
Accounts payable
|
| | | | 6,250,508 | | | | | | 2,084,374 | | |
Other non-current liabilities
|
| | | | 536,674 | | | | | | (83,991) | | |
Net cash (used in) provided by operating activities
|
| | | | (9,344,708) | | | | | | 1,383,711 | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Purchases of property and equipment
|
| | | | (1,975,629) | | | | | | (835,539) | | |
Purchases of intangible asset in acquisition
|
| | | | (200,000) | | | | | | — | | |
Cash paid for acquisition, net
|
| | | | (827,457) | | | | | | (150,000) | | |
Issuance of notes receivable
|
| | | | — | | | | | | (7,500,000) | | |
Net cash used in investing activities
|
| | | | (3,003,086) | | | | | | (8,485,539) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Proceeds from issuance of long-term debt, net
|
| | | | — | | | | | | 12,399,008 | | |
Principal payments on long-term debt
|
| | | | (2,093,750) | | | | | | (93,750) | | |
Principal payments on capital leases
|
| | | | (23,989) | | | | | | (26,251) | | |
Deferred offering costs
|
| | | | — | | | | | | (342,500) | | |
Issuance of preferred stock
|
| | | | 20,000,000 | | | | | | — | | |
Net cash provided by financing activities
|
| | | | 17,882,261 | | | | | | 11,936,507 | | |
Net increase in cash
|
| | | | 5,534,467 | | | | | | 4,834,679 | | |
Cash at beginning of period
|
| | | | 5,997,530 | | | | | | 2,446,201 | | |
Cash at end of period
|
| | | $ | 11,531,997 | | | | | $ | 7,280,880 | | |
Supplemental disclosure of non-cash investing and financing activities: | | | | | | | | | | | | | |
Interest and principal forgiven from Paycheck Protection Program loans
|
| | | $ | 5,186,341 | | | | | $ | — | | |
Cash paid for:
|
| | | | | | | | | | | | |
Income taxes
|
| | | $ | 428,537 | | | | | $ | 58,500 | | |
Interest
|
| | | | 193,096 | | | | | | 168,530 | | |
| | |
Nine Months Ended
September 30, |
| |||||||||
|
2021
|
| |
2020
|
| ||||||||
Percentage of net revenue: | | | | | | | | | | | | | |
Payor A
|
| | | | 17% | | | | | | 15% | | |
Payor B
|
| | | | 14% | | | | | | 15% | | |
| | |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
Percentage of gross receivables: | | | | | | | | | | | | | |
Payor B
|
| | | | 21% | | | | | | 11% | | |
Payor D
|
| | | | 22% | | | | | | 21% | | |
| | |
Nine Months
Ended September 30, |
| |||||||||
|
2021
|
| |
2020
|
| ||||||||
Percentage of cost of sales: | | | | | | | | | | | | | |
Vendor A
|
| | | | 51% | | | | | | 54% | | |
Vendor B
|
| | | | 48% | | | | | | 44% | | |
| | |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
Percentage of gross payables: | | | | | | | | | | | | | |
Vendor A
|
| | | | 30% | | | | | | 42% | | |
Vendor B
|
| | | | 59% | | | | | | 48% | | |
| | |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
Oral drug accounts receivable
|
| | | $ | 2,668,582 | | | | | $ | 2,307,872 | | |
Capitated accounts receivable
|
| | | | 663,562 | | | | | | 353,250 | | |
FFS accounts receivable
|
| | | | 14,355,205 | | | | | | 10,962,394 | | |
Clinical trials accounts receivable
|
| | | | 1,947,626 | | | | | | 1,718,846 | | |
Other trade receivables
|
| | | | 2,621,630 | | | | | | 1,803,548 | | |
Total
|
| | | $ | 22,256,605 | | | | | $ | 17,145,910 | | |
| | |
Three Months Ended
|
| |
Nine Months Ended
|
| ||||||||||||||||||
|
September 30,
2021 |
| |
September 30,
2020 |
| |
September 30,
2021 |
| |
September 30,
2020 |
| ||||||||||||||
Patient services | | | | | | | | | | | | | | | | | | | | | | | | | |
Capitated revenue
|
| | | $ | 14,124,468 | | | | | $ | 9,720,441 | | | | | $ | 39,351,829 | | | | | $ | 26,177,975 | | |
FFS revenue
|
| | | | 18,842,933 | | | | | | 19,943,443 | | | | | | 53,023,939 | | | | | | 60,807,538 | | |
Subtotal
|
| | | | 32,967,401 | | | | | | 29,663,884 | | | | | | 92,375,768 | | | | | | 86,985,513 | | |
Dispensary revenue
|
| | | | 17,918,035 | | | | | | 16,162,528 | | | | | | 53,317,877 | | | | | | 46,347,096 | | |
Clinical research trials & other revenue
|
| | | | 1,389,522 | | | | | | 1,423,032 | | | | | | 5,004,889 | | | | | | 5,216,372 | | |
Total
|
| | | $ | 52,274,958 | | | | | $ | 47,249,444 | | | | | $ | 150,698,534 | | | | | $ | 138,548,981 | | |
| | |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
Oral drug inventory
|
| | | $ | 1,712,606 | | | | | $ | 1,414,250 | | |
IV drug inventory
|
| | | | 4,043,972 | | | | | | 2,939,982 | | |
Total
|
| | | $ | 5,756,578 | | | | | $ | 4,354,232 | | |
| | |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
Financial assets: | | | | | | | | | | | | | |
Cash
|
| | | $ | 11,531,997 | | | | | $ | 5,997,530 | | |
Accounts receivable
|
| | | | 22,256,605 | | | | | | 17,145,910 | | |
Other receivables
|
| | | | 581,451 | | | | | | 112,663 | | |
Financial liabilities: | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 19,013,532 | | | | | $ | 12,643,024 | | |
| | |
Useful lives
|
| |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
Computers and software
|
| |
60 months
|
| | | $ | 739,853 | | | | | $ | 424,099 | | |
Office furniture
|
| |
80 months
|
| | | | 305,506 | | | | | | 270,761 | | |
Leasehold improvements
|
| |
Shorter of lease term or estimated
useful life |
| | | | 3,181,788 | | | | | | 1,684,889 | | |
Medical equipment
|
| |
60 months
|
| | | | 719,035 | | | | | | 515,386 | | |
Construction in progress
|
| | | | | | | 129,306 | | | | | | 204,724 | | |
Equipment capital lease assets
|
| |
Shorter of lease term or estimated
useful life |
| | | | 162,769 | | | | | | 162,769 | | |
Less: accumulated depreciation
|
| | | | | | | (1,721,078) | | | | | | (1,158,403) | | |
Total property and equipment, net
|
| | | | | | $ | 3,517,179 | | | | | $ | 2,104,225 | | |
| | |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
Compensation, including bonuses, fringe benefits, and payroll taxes
|
| | | $ | 3,871,605 | | | | | $ | 3,809,631 | | |
Deferred revenue and refund liabilities
|
| | | | 1,657,120 | | | | | | 3,378,905 | | |
Other liabilities
|
| | | | 6,229,486 | | | | | | 2,263,584 | | |
Total accrued expenses and other current liabilities
|
| | | $ | 11,758,211 | | | | | $ | 9,452,120 | | |
| | |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
Capital leases: | | | | | | | | | | | | | |
Machinery and equipment
|
| | | $ | 162,769 | | | | | $ | 162,769 | | |
Accumulated amortization
|
| | | | (62,395) | | | | | | (37,980) | | |
Property, plant, and equipment, net
|
| | | | 100,374 | | | | | | 124,789 | | |
Current installments of obligations under capital leases
|
| | | | 32,344 | | | | | | 31,191 | | |
Long-term portion of obligations under capital leases
|
| | | | 72,028 | | | | | | 97,044 | | |
Total capital lease obligations
|
| | | $ | 104,372 | | | | | $ | 128,235 | | |
| | |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
1% Paycheck Protection Program Loan, due May 13, 2022
|
| | | $ | — | | | | | $ | 2,000,000 | | |
1% Small Business Administration Loan, due May 2, 2022
|
| | | | — | | | | | | 2,992,758 | | |
Current portion of term loan payable
|
| | | | 5,125,000 | | | | | | 375,000 | | |
Less: | | | | | | | | | | | | | |
Unamortized debt issuance costs
|
| | | | 229,725 | | | | | | — | | |
Short-term debt and current portion of long-term debt
|
| | | $ | 4,895,275 | | | | | $ | 5,367,758 | | |
| | |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
Variable Rate Revolving Credit Facility Term Loan, interest at LIBOR plus applicable margin, due February 26, 2025
|
| | | $ | 5,125,000 | | | | | $ | 7,218,750 | | |
Less: | | | | | | | | | | | | | |
Unamortized debt issuance costs
|
| | | | 229,725 | | | | | | 282,512 | | |
Current portion of term loan payable, net of debt issuance costs
|
| | | | 4,895,275 | | | | | | 375,000 | | |
Long-term debt, net of unamortized debt issuance costs and current portion
|
| | | $ | — | | | | | $ | 6,561,238 | | |
Option-pricing method
|
| | | |
Valuation date
|
| |
11/6/2020
|
|
Liquidity event date
|
| |
12/31/2024
|
|
Time to liquidity
|
| |
4.15 years
|
|
Total equity value
|
| |
$82,000,000
|
|
Annual dividend rate for common stock
|
| |
0.0%
|
|
Annualized volatility
|
| |
40.0%
|
|
Risk-free rate (continuously compounding)
|
| |
0.3%
|
|
Common-stock equivalent method
|
| | | |
Valuation date
|
| |
11/6/2020
|
|
Liquidity event date
|
| |
12/31/2024
|
|
Time to liquidity
|
| |
4.15 years
|
|
Total equity value
|
| |
$82,000,000
|
|
Value per common stock equivalent
|
| |
$562.06
|
|
| | |
9 Months Ended
09/30/2021 |
|
Valuation assumptions | | | | |
Expected dividend yield
|
| |
—%
|
|
Expected volatility
|
| |
38.6% and 40.2%
|
|
Risk-free interest rate
|
| |
0.76% to 1.12%
|
|
Expected term (years)
|
| |
7
|
|
Stock options
|
| |
Number of
shares |
| |
Weighted
average exercise price |
| |
Weighted
average remaining contractual term |
| |
Aggregate
intrinsic value |
| ||||||||||||
Balance at January 1, 2021
|
| | | | 14,860 | | | | | $ | 497.95 | | | | | | | | | | | | | | |
Granted
|
| | | | 2,023 | | | | | | 630.00 | | | | | | | | | | | | | | |
Exercised
|
| | | | — | | | | | | | | | | | | | | | | | | | | |
Forfeited
|
| | | | (1,215) | | | | | | 504.38 | | | | | | | | | | | | | | |
Expired
|
| | | | — | | | | | | | | | | | | | | | | | | | | |
Balance at September 30, 2021
|
| | | | 15,668 | | | | | | 514.50 | | | | | | 8.31 | | | | | | — | | |
Vested options exercisable at September 30, 2021
|
| | | | 2,578 | | | | | $ | 497.03 | | | | | | 6.86 | | | | | | — | | |
| | |
Number of
shares |
| |||
Balance at January 1, 2021
|
| | | | 238 | | |
Granted
|
| | | | — | | |
Forfeited
|
| | | | (4) | | |
Balance at September 30, 2021
|
| | | | 234 | | |
| | |
Capital
leases |
| |
Operating
leases |
| ||||||
Year ending December 31: | | | | | | | | | | | | | |
2021
|
| | | $ | 8,572 | | | | | $ | 874,490 | | |
2022
|
| | | | 36,736 | | | | | | 3,430,762 | | |
2023
|
| | | | 36,736 | | | | | | 3,151,293 | | |
2024
|
| | | | 30,614 | | | | | | 2,673,093 | | |
2025
|
| | | | — | | | | | | 2,141,122 | | |
Thereafter
|
| | | | — | | | | | | 1,674,718 | | |
Total minimum lease payments
|
| | | $ | 112,658 | | | | | $ | 13,945,478 | | |
Less: amount representing interest (6% interest rate)
|
| | | | (8,286) | | | | | | | | |
Present value of net minimum capital lease payments
|
| | | | 104,372 | | | | | | | | |
Less current installments of obligations under capital leases
|
| | | | (32,344) | | | | | | | | |
Obligations under capital leases, excluding current installments
|
| | | $ | 72,028 | | | | | | | | |
| Consideration: | | | | | | | |
|
Cash
|
| | | $ | 892,500 | | |
|
Deferred consideration arrangement
|
| | | | 817,500 | | |
|
Fair value of total consideration transferred
|
| | | | 1,710,000 | | |
| Estimated fair value of assets acquired and liabilities assumed: | | | | | | | |
|
Cash
|
| | | | 65,042 | | |
|
Accounts receivable
|
| | | | 248,816 | | |
|
Inventory
|
| | | | 62,656 | | |
|
Other receivables
|
| | | | 149,398 | | |
|
Goodwill
|
| | | | 1,453,486 | | |
|
Total assets acquired
|
| | | | 1,979,398 | | |
|
Accounts payable
|
| | | | 120,000 | | |
|
Debt, inclusive of PPP
|
| | | | 149,398 | | |
|
Total liabilities assumed
|
| | | | 269,398 | | |
|
Net assets acquired
|
| | | $ | 1,710,000 | | |
| | |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
Assets | | | | | | | | | | | | | |
Current assets:
|
| | | | | | | | | | | | |
Cash
|
| | | $ | 1,537,568 | | | | | $ | 19,502 | | |
Accounts receivable
|
| | | | 22,256,608 | | | | | | 17,145,910 | | |
Other receivables
|
| | | | 99,445 | | | | | | 49,163 | | |
Inventories, net
|
| | | | 5,756,578 | | | | | | 4,354,232 | | |
Prepaid expenses and other current assets
|
| | | | 675,233 | | | | | | 719,063 | | |
Total current assets
|
| | | | 30,325,432 | | | | | | 22,287,870 | | |
Intangible assets, net
|
| | | | 479,167 | | | | | | — | | |
Other assets
|
| | | | 306,640 | | | | | | 200,600 | | |
Goodwill
|
| | | | 150,000 | | | | | | 150,000 | | |
Total assets
|
| | | $ | 31,261,239 | | | | | $ | 22,638,470 | | |
Liabilities | | | | | | | | | | | | | |
Current liabilities:
|
| | | | | | | | | | | | |
Accounts payable
|
| | | $ | 17,694,967 | | | | | $ | 11,953,239 | | |
Accrued expenses and other current liabilities
|
| | | | 4,231,336 | | | | | | 5,818,538 | | |
Income taxes payable
|
| | | | 220,046 | | | | | | 220,046 | | |
Current portion of long-term debt
|
| | | | — | | | | | | 2,000,000 | | |
Amounts due to affiliates
|
| | | | 34,013,311 | | | | | | 19,883,097 | | |
Total current liabilities
|
| | | | 56,159,660 | | | | | | 39,874,920 | | |
Other non-current liabilities
|
| | | | 896,082 | | | | | | 551,228 | | |
Total liabilities
|
| | | $ | 57,055,742 | | | | | $ | 40,426,148 | | |
| | |
Weighted
average amortization period |
| |
Gross carrying
amount |
| |
Accumulated
amortization |
| |
Net carrying
amount |
| ||||||||||||
Intangible assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Amortizing intangible assets: | | | | | | | | | | | | | | | | | | | | | | | | | |
Payor contracts
|
| | | | 10 years | | | | | $ | 19,400,000 | | | | | $ | (5,680,572) | | | | | $ | 13,719,428 | | |
Trade names
|
| | | | 10 years | | | | | | 4,170,000 | | | | | | (1,248,736) | | | | | | 2,921,264 | | |
Clinical contracts
|
| | | | 10 years | | | | | | 2,164,000 | | | | | | (648,025) | | | | | | 1,515,975 | | |
Total intangible assets
|
| | | | | | | | | $ | 25,734,000 | | | | | $ | (7,577,333) | | | | | $ | 18,156,667 | | |
| | |
Weighted
average amortization period |
| |
Gross carrying
amount |
| |
Accumulated
amortization |
| |
Net carrying
amount |
| ||||||||||||
Intangible assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Amortizing intangible assets: | | | | | | | | | | | | | | | | | | | | | | | | | |
Payor contracts
|
| | | | 10 years | | | | | $ | 18,900,000 | | | | | $ | (4,283,045) | | | | | $ | 14,616,955 | | |
Trade names
|
| | | | 10 years | | | | | | 4,170,000 | | | | | | (944,989) | | | | | | 3,225,011 | | |
Clinical contracts
|
| | | | 10 years | | | | | | 2,164,000 | | | | | | (490,397) | | | | | | 1,673,603 | | |
Total intangible assets
|
| | | | | | | | | $ | 25,234,000 | | | | | $ | (5,718,431) | | | | | $ | 19,515,569 | | |
| | |
Amount
|
| |||
Year ending December 31: | | | | | | | |
Remainder of 2021
|
| | | $ | 625,189 | | |
2022
|
| | | | 2,500,757 | | |
2023
|
| | | | 2,500,757 | | |
2024
|
| | | | 2,500,757 | | |
2025
|
| | | | 2,500,757 | | |
Thereafter
|
| | | | 7,528,450 | | |
Total | | | | $ | 18,156,667 | | |
| | |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
Patient services
|
| | | $ | 10,497,489 | | | | | $ | 9,044,003 | | |
Dispensary
|
| | | | 4,551,002 | | | | | | 4,551,002 | | |
Clinical trials & other
|
| | | | 631,669 | | | | | | 631,669 | | |
Total goodwill
|
| | | $ | 15,680,160 | | | | | $ | 14,226,674 | | |
| | |
2021
|
| |
2020
|
| ||||||
Balance as of January 1 : | | | | | | | | | | | | | |
Gross goodwill
|
| | | $ | 14,226,674 | | | | | $ | 14,076,674 | | |
Goodwill acquired during the period
|
| | | | 1,453,486 | | | | | | 150,000 | | |
Goodwill, net as of September 30 and December 31
|
| | | $ | 15,680,160 | | | | | $ | 14,226,674 | | |
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
|
2021
|
| |
2020
|
| |
2021
|
| |
2020
|
| ||||||||||||||
Net loss attributable to TOI Parent, Inc.
|
| | | $ | (2,980,123) | | | | | $ | (675,948) | | | | | $ | (770,748) | | | | | $ | (9,503,489) | | |
Basic and diluted weighted average shares outstanding
|
| | | | 114,510 | | | | | | 10,000 | | | | | | 114,510 | | | | | | 10,000 | | |
Basic and diluted net loss per share attributable to TOI Parent, Inc.
|
| | | $ | (26.03) | | | | | $ | (67.59) | | | | | $ | (6.73) | | | | | $ | (950.35) | | |
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
|
2021
|
| |
2020
|
| |
2021
|
| |
2020
|
| ||||||||||||||
Stock Options(1)
|
| | | | 23,138 | | | | | | 10,832 | | | | | | 23,138 | | | | | | 10,832 | | |
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
|
2021
|
| |
2020
|
| |
2021
|
| |
2020
|
| ||||||||||||||
Revenue | | | | | | | | | | | | | | | | | | | | | | | | | |
Patient services
|
| | | $ | 32,967,401 | | | | | $ | 29,663,884 | | | | | $ | 92,375,768 | | | | | $ | 86,985,513 | | |
Dispensary
|
| | | | 17,918,035 | | | | | | 16,162,528 | | | | | | 53,317,877 | | | | | | 46,347,096 | | |
Clinical trials & other
|
| | | | 1,389,522 | | | | | | 1,423,032 | | | | | | 5,004,889 | | | | | | 5,216,372 | | |
Consolidated revenue
|
| | | | 52,274,958 | | | | | | 47,249,444 | | | | | | 150,698,534 | | | | | | 138,548,981 | | |
Direct costs | | | | | | | | | | | | | | | | | | | | | | | | | |
Patient services
|
| | | | 25,390,950 | | | | | | 24,078,152 | | | | | | 72,050,631 | | | | | | 72,830,254 | | |
Dispensary
|
| | | | 15,279,173 | | | | | | 13,431,738 | | | | | | 45,639,083 | | | | | | 38,896,324 | | |
Clinical trials & other
|
| | | | 182,230 | | | | | | 166,238 | | | | | | 493,988 | | | | | | 786,992 | | |
Total segment direct costs
|
| | | | 40,852,353 | | | | | | 37,676,128 | | | | | | 118,183,702 | | | | | | 112,513,570 | | |
Depreciation expense | | | | | | | | | | | | | | | | | | | | | | | | | |
Patient services
|
| | | | 181,392 | | | | | | 140,945 | | | | | | 447,162 | | | | | | 403,027 | | |
Dispensary
|
| | | | 218 | | | | | | 149 | | | | | | 653 | | | | | | 149 | | |
Clinical trials & other
|
| | | | 31,265 | | | | | | 30,680 | | | | | | 86,645 | | | | | | 77,156 | | |
Total segment depreciation expense
|
| | | | 212,875 | | | | | | 171,774 | | | | | | 534,460 | | | | | | 480,332 | | |
Amortization of intangible assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Patient services
|
| | | | 572,646 | | | | | | 560,146 | | | | | | 1,701,274 | | | | | | 1,713,647 | | |
Dispensary
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Clinical trials & other
|
| | | | 52,543 | | | | | | 52,543 | | | | | | 157,628 | | | | | | 160,743 | | |
Total segment amortization
|
| | | | 625,189 | | | | | | 612,689 | | | | | | 1,858,902 | | | | | | 1,874,390 | | |
Segment operating income | | | | | | | | | | | | | | | | | | | | | | | | | |
Patient services
|
| | | | 6,822,413 | | | | | | 4,884,641 | | | | | | 18,176,701 | | | | | | 12,038,585 | | |
Dispensary
|
| | | | 2,638,644 | | | | | | 2,730,641 | | | | | | 7,678,141 | | | | | | 7,450,623 | | |
Clinical trials & other
|
| | | | 1,123,484 | | | | | | 1,173,571 | | | | | | 4,266,628 | | | | | | 4,191,481 | | |
Total segment operating income
|
| | | | 10,584,541 | | | | | | 8,788,853 | | | | | | 30,121,470 | | | | | | 23,680,689 | | |
Selling, general and administrative expense
|
| | | | 12,729,425 | | | | | | 9,492,069 | | | | | | 35,119,854 | | | | | | 26,861,651 | | |
Non-segment depreciation and
amortization |
| | | | 12,135 | | | | | | 8,012 | | | | | | 28,215 | | | | | | 33,497 | | |
Total consolidated operating (loss)
|
| | | $ | (2,157,019) | | | | | $ | (711,228) | | | | | $ | (5,026,599) | | | | | $ | (3,214,459) | | |
| | |
September 30,
2021 |
| |
December 31,
2020 |
| ||||||
Assets | | | | | | | | | | | | | |
Patient services
|
| | | $ | 42,530,458 | | | | | $ | 36,445,920 | | |
Dispensary
|
| | | | 5,039,241 | | | | | | 4,318,946 | | |
Clinical trials & other
|
| | | | 15,509,973 | | | | | | 5,486,965 | | |
Non-segment assets
|
| | | | 27,747,655 | | | | | | 19,436,737 | | |
Total assets
|
| | | $ | 90,827,327 | | | | | $ | 65,688,568 | | |
| | |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
Assets | | | | | | | | | | | | | |
Current assets:
|
| | | | | | | | | | | | |
Cash
|
| | | $ | 5,997,530 | | | | | $ | 2,446,201 | | |
Accounts receivable
|
| | | | 17,145,910 | | | | | | 14,616,261 | | |
Other receivables
|
| | | | 112,663 | | | | | | 118,156 | | |
Inventories, net
|
| | | | 4,354,232 | | | | | | 3,888,988 | | |
Prepaid expenses
|
| | | | 2,109,256 | | | | | | 723,058 | | |
Total current assets
|
| | | | 29,719,591 | | | | | | 21,792,664 | | |
Property and equipment, net
|
| | | | 2,104,225 | | | | | | 1,550,903 | | |
Intangible assets, net
|
| | | | 19,515,569 | | | | | | 22,002,646 | | |
Goodwill
|
| | | | 14,226,674 | | | | | | 14,076,674 | | |
Other assets
|
| | | | 122,509 | | | | | | 97,851 | | |
Total assets
|
| | | $ | 65,688,568 | | | | | $ | 59,520,738 | | |
Liabilities and stockholders’ deficit | | | | | | | | | | | | | |
Current liabilities:
|
| | | | | | | | | | | | |
Current portion of long-term debt
|
| | | $ | 5,367,758 | | | | | $ | — | | |
Accounts payable
|
| | | | 12,643,024 | | | | | | 8,885,431 | | |
Income taxes payable
|
| | | | 1,143,956 | | | | | | 488,737 | | |
Accrued expenses and other current liabilities
|
| | | | 9,452,120 | | | | | | 4,211,283 | | |
Total current liabilities
|
| | | | 28,606,858 | | | | | | 13,585,451 | | |
Long-term debt, net of unamortized debt issuance costs and current portion
|
| | | | 6,561,238 | | | | | | — | | |
Other non-current liabilities
|
| | | | 806,186 | | | | | | 756,425 | | |
Deferred income taxes
|
| | | | 1,612,769 | | | | | | 2,956,516 | | |
Total liabilities
|
| | | | 37,587,051 | | | | | | 17,298,392 | | |
6% cumulative Series A Preferred Shares, $0.001 par value. Authorized 20,000 shares; 10,000 shares issued and outstanding at December 31, 2020 and December 31, 2019
|
| | | | 80,113,700 | | | | | | 48,143,362 | | |
Stockholders’ deficit: | | | | | | | | | | | | | |
Common shares, $0.0001 par value. Authorized 400,000 shares; 100 shares
issued and outstanding at December 31, 2020 and zero shares issued and outstanding as of December 31, 2019 |
| | | | — | | | | | | — | | |
Additional paid-in capital
|
| | | | 294,413 | | | | | | 94,007 | | |
Accumulated deficit
|
| | | | (52,306,596) | | | | | | (6,015,023) | | |
Total stockholders’ deficit
|
| | | | (52,012,183) | | | | | | (5,921,016) | | |
Total liabilities, cumulative preferred shares and stockholders’ deficit
|
| | | $ | 65,688,568 | | | | | $ | 59,520,738 | | |
| | |
Year Ended
December 31, 2020 |
| |
Year Ended
December 31, 2019 |
| |
Period from
September 20, 2018 through December 31, 2018 |
| | |
Period from
January 1, 2018 through September 19, 2018 |
| ||||||||||||
| | |
Successor
|
| | |
Predecessor
|
| ||||||||||||||||||
Revenue | | | | | | | | | | | | | | | | | | | | | | | | | | |
Patient services
|
| | | $ | 116,816,797 | | | | | $ | 97,624,881 | | | | | $ | 21,284,785 | | | | | | $ | 48,527,028 | | |
Dispensary
|
| | | | 63,889,875 | | | | | | 49,953,992 | | | | | | 13,201,609 | | | | | | | 26,757,955 | | |
Clinical trials & other
|
| | | | 6,807,989 | | | | | | 7,826,311 | | | | | | 2,872,995 | | | | | | | 515,742 | | |
Total operating revenue
|
| | | | 187,514,661 | | | | | | 155,405,184 | | | | | | 37,359,389 | | | | | | | 75,800,725 | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | | | |
Direct costs – patient services
|
| | | | 95,746,831 | | | | | | 81,053,345 | | | | | | 16,650,583 | | | | | | | 34,454,497 | | |
Direct costs – dispensary
|
| | | | 53,906,958 | | | | | | 43,455,898 | | | | | | 12,015,032 | | | | | | | 23,492,682 | | |
Direct costs – clinical trials & other
|
| | | | 981,896 | | | | | | 955,321 | | | | | | 265,733 | | | | | | | — | | |
Selling, general and administrative
expense |
| | | | 41,897,302 | | | | | | 29,643,511 | | | | | | 8,833,475 | | | | | | | 11,555,910 | | |
Depreciation and amortization
|
| | | | 3,177,577 | | | | | | 2,941,861 | | | | | | 764,462 | | | | | | | 338,196 | | |
Total operating expenses
|
| | | | 195,710,564 | | | | | | 158,049,936 | | | | | | 38,529,285 | | | | | | | 69,841,285 | | |
| | | | | | | | | | | | | | | | | | | | | | | | — | | |
(Loss) income from operations
|
| | | | (8,195,903) | | | | | | (2,644,752) | | | | | | (1,169,896) | | | | | | | 5,959,440 | | |
Other non-operating expense (income) | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense
|
| | | | 347,060 | | | | | | 3,375 | | | | | | 1,592 | | | | | | | — | | |
Other, net
|
| | | | 6,271,095 | | | | | | (10,000) | | | | | | — | | | | | | | (72,767) | | |
Total other non-operating expense (income)
|
| | | | 6,618,155 | | | | | | (6,625) | | | | | | 1,592 | | | | | | | (72,767) | | |
(Loss) income before provision for income
taxes |
| | | | (14,814,058) | | | | | | (2,638,127) | | | | | | (1,171,488) | | | | | | | 6,032,207 | | |
Income tax (expense) benefit
|
| | | | 492,823 | | | | | | (1,383,268) | | | | | | (822,140) | | | | | | | (90,605) | | |
Net (loss) income
|
| | | $ | (14,321,235) | | | | | $ | (4,021,395) | | | | | $ | (1,993,628) | | | | | | $ | 5,941,602 | | |
(Loss) income per share attributable to TOI Parent, Inc. common stockholders:
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted
|
| | | $ | (602.09) | | | | | $ | (402.14) | | | | | $ | (199.36) | | | | | | | | | |
Weighted-average number of shares outstanding:
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted
|
| | | | 23,786 | | | | | | 10,000 | | | | | | 10,000 | | | | | | | | | |
| | |
Cumulative Preferred Shares
|
| |
Common Shares
|
| |
Additional paid
in capital |
| |
Retained
Earnings/ (Accumulated Deficit) |
| |
Total
Stockholders’ Equity (Deficit) |
| |||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
Balance at December 31, 2017
|
| | | | — | | | | | $ | — | | | | | | 1,000 | | | | | $ | 10,000 | | | | | $ | — | | | | | $ | 7,801,351 | | | | | $ | 7,811,351 | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,941,602 | | | | | | 5,941,602 | | |
Dividends paid
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (8,200,414) | | | | | | (8,200,414) | | |
Balance at September 19, 2018 (Predecessor)
|
| | | | — | | | | | $ | — | | | | | | 1,000 | | | | | $ | 10,000 | | | | | $ | — | | | | | $ | 5,542,539 | | | | | $ | 5,552,539 | | |
Balance at September 19, 2018 (Successor)
|
| | | | — | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,993,628) | | | | | | (1,993,628) | | |
Series A Preferred Shares issued
|
| | | | 10,000 | | | | | | 48,143,362 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Balance at December, 31, 2018
|
| | | | 10,000 | | | | | | 48,143,362 | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,993,628) | | | | | | (1,993,628) | | |
Net (loss) income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (4,021,395) | | | | | | (4,021,395) | | |
Share-based compensation expense
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 94,007 | | | | | | — | | | | | | 94,007 | | |
Balance at December, 31, 2019
|
| | | | 10,000 | | | | | | 48,143,362 | | | | | | — | | | | | | — | | | | | | 94,007 | | | | | | (6,015,023) | | | | | | (5,921,016) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (14,321,235) | | | | | | (14,321,235) | | |
Exercise of common share options
|
| | | | — | | | | | | — | | | | | | 100 | | | | | | — | | | | | | 49,610 | | | | | | — | | | | | | 49,610 | | |
Deemed dividend on extinguishment of Series A Preferred Share
re-issuance |
| | | | — | | | | | | 31,970,338 | | | | | | — | | | | | | — | | | | | | — | | | | | | (31,970,338) | | | | | | (31,970,338) | | |
Share-based compensation expense
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 150,796 | | | | | | — | | | | | | 150,796 | | |
Balance at December, 31, 2020
|
| | | | 10,000 | | | | | $ | 80,113,700 | | | | | | 100 | | | | | $ | — | | | | | $ | 294,413 | | | | | $ | (52,306,596) | | | | | $ | (52,012,183) | | |
| | |
Year Ended
December 31, 2020 |
| |
Year Ended
December 31, 2019 |
| |
Period from
September 20, 2018 through December 31, 2018 |
| | |
Period from
January 1, 2018 through September 19, 2018 |
| ||||||||||||
| | |
Successor
|
| | |
Predecessor
|
| ||||||||||||||||||
Cash flows from operating activities: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net (loss) income
|
| | | $ | (14,321,235) | | | | | $ | (4,021,395) | | | | | $ | (1,993,628) | | | | | | $ | 5,941,602 | | |
Adjustments to reconcile net (loss) income to
cash provided by operating activities: |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Depreciation and amortization
|
| | | | 3,177,577 | | | | | | 2,941,861 | | | | | | 764,462 | | | | | | | 338,196 | | |
Bad debt expense
|
| | | | 4,233,053 | | | | | | 326,926 | | | | | | — | | | | | | | — | | |
Amortization of debt issuance costs
|
| | | | 59,988 | | | | | | — | | | | | | — | | | | | | | — | | |
Impairment loss
|
| | | | 7,500,000 | | | | | | — | | | | | | — | | | | | | | — | | |
Share-based compensation
|
| | | | 150,796 | | | | | | 94,007 | | | | | | — | | | | | | | — | | |
Deferred tax liability
|
| | | | (1,343,747) | | | | | | 824,762 | | | | | | 731,102 | | | | | | | (42,337) | | |
Loss on disposal of property and equipment
|
| | | | 59,882 | | | | | | — | | | | | | — | | | | | | | — | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
Accounts receivable
|
| | | | (6,762,702) | | | | | | (4,329,451) | | | | | | 484,122 | | | | | | | (1,870,752) | | |
Inventories
|
| | | | (465,244) | | | | | | (1,132,669) | | | | | | (48,679) | | | | | | | (248,087) | | |
Other receivables
|
| | | | 5,493 | | | | | | (110,383) | | | | | | (7,773) | | | | | | | 711,027 | | |
Prepaid expenses
|
| | | | (1,386,198) | | | | | | (250,932) | | | | | | (333,644) | | | | | | | 188,750 | | |
Other assets
|
| | | | (24,658) | | | | | | (97,851) | | | | | | 5,965 | | | | | | | (734,567) | | |
Accrued expenses and other current
liabilities |
| | | | 5,209,646 | | | | | | 2,770,651 | | | | | | (6,112,671) | | | | | | | 1,472,185 | | |
Income taxes payable
|
| | | | 655,219 | | | | | | 390,061 | | | | | | (17,401) | | | | | | | 116,077 | | |
Accounts payable
|
| | | | 3,757,593 | | | | | | 5,526,896 | | | | | | 3,221,546 | | | | | | | 2,852,903 | | |
Noncurrent liabilities
|
| | | | 2,776 | | | | | | 682,777 | | | | | | 23,589 | | | | | | | 199,826 | | |
Net cash provided by (used in) operating
activities |
| | | | 508,239 | | | | | | 3,615,260 | | | | | | (3,283,010) | | | | | | | 8,924,823 | | |
Cash flows from investing activities: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Purchases of property and equipment
|
| | | | (1,194,121) | | | | | | (1,204,563) | | | | | | (369,649) | | | | | | | (326,312) | | |
Cash paid for acquisition
|
| | | | (150,000) | | | | | | — | | | | | | 3,184,660 | | | | | | | — | | |
Issuance of notes receivable
|
| | | | (7,500,000) | | | | | | — | | | | | | — | | | | | | | — | | |
Net cash (used in) provided by investing
activities |
| | | | (8,844,121) | | | | | | (1,204,563) | | | | | | 2,815,011 | | | | | | | (326,312) | | |
Cash flows from financing activities: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Proceeds from issuance of long-term debt, net
|
| | | | 12,492,758 | | | | | | — | | | | | | — | | | | | | | — | | |
Principal payments on long-term debt
|
| | | | (281,250) | | | | | | — | | | | | | — | | | | | | | — | | |
Principal payments on capital leases
|
| | | | (31,407) | | | | | | (1,814) | | | | | | — | | | | | | | — | | |
Deferred offering costs
|
| | | | (342,500) | | | | | | — | | | | | | — | | | | | | | — | | |
Exercise of common share options
|
| | | | 49,610 | | | | | | — | | | | | | — | | | | | | | — | | |
Dividends paid
|
| | | | — | | | | | | — | | | | | | — | | | | | | | (8,200,414) | | |
Net cash provided by (used in) financing activities
|
| | | | 11,887,211 | | | | | | (1,814) | | | | | | — | | | | | | | (8,200,414) | | |
Net increase (decrease) in cash
|
| | | | 3,551,329 | | | | | | 2,408,883 | | | | | | (467,999) | | | | | | | 398,097 | | |
Cash at beginning of year
|
| | | | 2,446,201 | | | | | | 37,318 | | | | | | 505,317 | | | | | | | 52,003 | | |
Cash at end of year
|
| | | $ | 5,997,530 | | | | | $ | 2,446,201 | | | | | $ | 37,318 | | | | | | $ | 450,100 | | |
Supplemental disclosure of cash flow information | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash paid for:
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
Income taxes
|
| | | $ | 207,454 | | | | | $ | 61,273 | | | | | $ | 155,941 | | | | | | $ | 16,865 | | |
Interest
|
| | | | 226,764 | | | | | | 3,375 | | | | | | 1,592 | | | | | | | — | | |
Supplemental of non-cash investing and financing activities:
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
Capital leases obtained in exchange for capital lease
liabilities |
| | | | 99,619 | | | | | | 63,151 | | | | | | — | | | | | | | — | | |
Deemed dividend on extinguishment of Series A Preferred Share re-issuance
|
| | | | 31,970,338 | | | | | | — | | | | | | — | | | | | | | — | | |
| | |
Year Ended
December 31, 2020 |
| |
Year Ended
December 31, 2019 |
| |
Period from
September 20, 2018 through December 31, 2018 |
| | |
Period from
January 1, 2018 through September 19, 2018 |
| ||||||||||||
| | |
Successor
|
| | |
Predecessor
|
| ||||||||||||||||||
Percentage of Net Revenue: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Payor A
|
| | | | 15% | | | | | | 18% | | | | | | 23% | | | | | | | 20% | | |
Payor B
|
| | | | 15% | | | | | | 16% | | | | | | 13% | | | | | | | 11% | | |
Payor C
|
| | | | 7% | | | | | | 11% | | | | | | 11% | | | | | | | 11% | | |
Payor D
|
| | | | 9% | | | | | | 11% | | | | | | 9% | | | | | | | 8% | | |
| | |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
Percentage of Gross Receivables: | | | | | | | | | | | | | |
Payor A
|
| | | | 1% | | | | | | 3% | | |
Payor B
|
| | | | 11% | | | | | | 24% | | |
Payor C
|
| | | | 3% | | | | | | 6% | | |
Payor D
|
| | | | 21% | | | | | | 26% | | |
| | |
Year Ended
December 31, 2020 |
| |
Year Ended
December 31, 2019 |
| |
Period from
September 20, 2018 through December 31, 2018 |
| | |
Period from
January 1, 2018 through September 19, 2018 |
| ||||||||||||
| | |
Successor
|
| | |
Predecessor
|
| ||||||||||||||||||
Percentage of Cost of Sales: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Vendor A
|
| | | | 55% | | | | | | 57% | | | | | | 46% | | | | | | | 48% | | |
Vendor B
|
| | | | 45% | | | | | | 43% | | | | | | 52% | | | | | | | 50% | | |
| | |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
Percentage of Gross Payables: | | | | | | | | | | | | | |
Vendor B
|
| | | | 48% | | | | | | 49% | | |
Vendor A
|
| | | | 42% | | | | | | 39% | | |
All others
|
| | | | 10% | | | | | | 12% | | |
| | |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
Oral drug accounts receivable
|
| | | $ | 2,307,872 | | | | | $ | 1,179,311 | | |
Capitated accounts receivable
|
| | | | 353,250 | | | | | | 96,000 | | |
FFS accounts receivable
|
| | | | 10,962,394 | | | | | | 10,904,721 | | |
Clinical trials accounts receivable
|
| | | | 1,718,846 | | | | | | 1,743,661 | | |
Other trade receivables
|
| | | | 1,803,548 | | | | | | 692,568 | | |
Total
|
| | | $ | 17,145,910 | | | | | $ | 14,616,261 | | |
| | |
Year Ended
December 31, 2020 |
| |
Year Ended
December 31, 2019 |
| |
Period from
September 20, 2018 through December 31, 2018 |
| | |
Period from
January 1, 2018 through September 19, 2018 |
| ||||||||||||
| | | | | | | | | | | | | | |
Successor
|
| | |
Predecessor
|
| ||||||
Patient services | | | | | | | | | | | | | | | | | | | | | | | | | | |
Capitated revenue
|
| | | $ | 37,381,005 | | | | | $ | 31,229,328 | | | | | $ | 8,947,525 | | | | | | $ | 20,560,867 | | |
FFS revenue
|
| | | | 79,435,792 | | | | | | 66,395,553 | | | | | | 12,337,260 | | | | | | | 27,966,161 | | |
Subtotal
|
| | | | 116,816,797 | | | | | | 97,624,881 | | | | | | 21,284,785 | | | | | | | 48,527,028 | | |
Dispensary revenue
|
| | | | 63,889,875 | | | | | | 49,953,992 | | | | | | 13,201,609 | | | | | | | 26,757,955 | | |
Clinical research trials and other revenue
|
| | | | 6,807,989 | | | | | | 7,826,311 | | | | | | 2,872,995 | | | | | | | 515,742 | | |
Total
|
| | | $ | 187,514,661 | | | | | $ | 155,405,184 | | | | | $ | 37,359,389 | | | | | | $ | 75,800,725 | | |
| | |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
Oral drug inventory
|
| | | $ | 1,414,250 | | | | | $ | 1,140,467 | | |
IV drug inventory
|
| | | | 2,939,982 | | | | | | 2,748,521 | | |
Total
|
| | | $ | 4,354,232 | | | | | $ | 3,888,988 | | |
| | |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
Financial assets: | | | | | | | | | | | | | |
Cash
|
| | | $ | 5,997,530 | | | | | $ | 2,446,201 | | |
Accounts receivable
|
| | | | 17,145,910 | | | | | | 14,616,261 | | |
Other receivables
|
| | | | 112,663 | | | | | | 118,156 | | |
Financial liabilities: | | | | | | | | | | | | | |
Accounts payable
|
| | | | 12,643,024 | | | | | | 8,885,431 | | |
| | |
Useful lives
|
| |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
Computers and software
|
| |
60 months
|
| | | $ | 424,099 | | | | | $ | 160,672 | | |
Office furniture
|
| |
80 months
|
| | | | 270,761 | | | | | | 215,375 | | |
Leasehold improvements
|
| |
Shorter of lease term or estimated
useful life |
| | | | 1,684,889 | | | | | | 1,159,458 | | |
Medical equipment
|
| |
60 months
|
| | | | 515,386 | | | | | | 397,896 | | |
Construction in progress
|
| | | | | | | 204,724 | | | | | | 29,320 | | |
Equipment capital lease assets
|
| |
Shorter of lease term or estimated
useful life |
| | | | 162,769 | | | | | | 63,151 | | |
Less: accumulated depreciation
|
| | | | | | | (1,158,403) | | | | | | (474,969) | | |
Total property and equipment, net
|
| | | | | | $ | 2,104,225 | | | | | $ | 1,550,903 | | |
| | |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
Compensation, including bonuses, fringe benefits and payroll taxes
|
| | | $ | 3,809,631 | | | | | $ | 1,480,500 | | |
Deferred revenue and refund liabilities
|
| | | | 3,378,905 | | | | | | 210,000 | | |
Other liabilities
|
| | | | 2,263,584 | | | | | | 2,520,783 | | |
Total accrued expenses and other current liabilities
|
| | | $ | 9,452,120 | | | | | $ | 4,211,283 | | |
| | |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
Capital leases: | | | | | | | | | | | | | |
Machinery and equipment
|
| | | $ | 162,769 | | | | | $ | 63,151 | | |
Accumulated amortization
|
| | | | (37,980) | | | | | | (2,105) | | |
Property, plant, and equipment, net
|
| | | | 124,789 | | | | | | 61,046 | | |
Current installments of obligations under capital leases
|
| | | | 31,191 | | | | | | 11,277 | | |
Long-term portion of obligations under capital leases
|
| | | | 97,044 | | | | | | 50,059 | | |
Total capital lease obligations
|
| | | $ | 128,235 | | | | | $ | 61,336 | | |
| | |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
1% Paycheck Protection Program Loan, due May 13, 2022
|
| | | $ | 2,000,000 | | | | | $ | — | | |
1% Small Business Administration Loan, due May 2, 2022
|
| | | | 2,992,758 | | | | | | — | | |
Current portion of term loan payable
|
| | | | 375,000 | | | | | | — | | |
Short-term debt and current portion of long-term debt
|
| | | $ | 5,367,758 | | | | | $ | — | | |
| | |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
Variable Rate Revolving Credit Facility Term Loan, interest at LIBOR
plus applicable margin, due February 26, 2025 |
| | | $ | 7,218,750 | | | | | $ | — | | |
Total long-term debt
|
| | | | 7,218,750 | | | | | | — | | |
Less: | | | | | | | | | | | | | |
Unamortized debt issuance costs
|
| | | | 282,512 | | | | | | — | | |
Current portion
|
| | | | 375,000 | | | | | | — | | |
Long-term debt, net of unamortized debt issuance costs and current portion
|
| | | $ | 6,561,238 | | | | | $ | — | | |
| | |
Current
|
| |
Deferred
|
| |
Total
|
| |||||||||
Year ended December 31, 2020: | | | | | | | | | | | | | | | | | | | |
U.S. federal
|
| | | $ | 822,490 | | | | | $ | (919,164) | | | | | $ | (96,674) | | |
State and local
|
| | | | 28,183 | | | | | | (424,332) | | | | | | (396,149) | | |
| | | | $ | 850,673 | | | | | $ | (1,343,496) | | | | | $ | (492,823) | | |
| | |
Current
|
| |
Deferred
|
| |
Total
|
| |||||||||
Year ended December 31, 2019: | | | | | | | | | | | | | | | | | | | |
U.S. federal
|
| | | $ | 355,245 | | | | | $ | 697,261 | | | | | $ | 1,052,506 | | |
State and local
|
| | | | 203,261 | | | | | | 127,501 | | | | | | 330,762 | | |
| | | | $ | 558,506 | | | | | $ | 824,762 | | | | | $ | 1,383,268 | | |
| | |
Current
|
| |
Deferred
|
| |
Total
|
| |||||||||
Period from September 20, 2018 through December 31,
2018: |
| | | | | | | | | | | | | | | | | | |
U.S. federal
|
| | | $ | — | | | | | $ | 552,044 | | | | | $ | 552,044 | | |
State and local
|
| | | | 91,039 | | | | | | 179,057 | | | | | | 270,096 | | |
| | | | $ | 91,039 | | | | | $ | 731,101 | | | | | $ | 822,140 | | |
| | |
Current
|
| |
Deferred
|
| |
Total
|
| |||||||||
Period from January 1, 2018 through September 19, 2018:
|
| | | | | | | | | | | | | | | | | | |
U.S. federal
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | |
State and local
|
| | | | 132,942 | | | | | | (42,337) | | | | | | 90,605 | | |
| | | | $ | 132,942 | | | | | $ | (42,337) | | | | | $ | 90,605 | | |
| | |
Year Ended
December 31, 2020 |
| |
Year Ended
December 31, 2019 |
| |
Period from
September 20, 2018 through December 31, 2018 |
| | |
Period from
January 1, 2018 through September 19, 2018 |
| ||||||||||||
Income tax at federal statutory rate
|
| | | $ | (3,110,753) | | | | | $ | (554,131) | | | | | $ | (246,014) | | | | | | $ | 1,266,764 | | |
Income not subject to corporate level tax
|
| | | | — | | | | | | — | | | | | | (30,292) | | | | | | | (1,266,764) | | |
State tax, net federal benefit
|
| | | | (982,329) | | | | | | (69,370) | | | | | | 238,489 | | | | | | | 90,605 | | |
Fines and Penalties
|
| | | | — | | | | | | — | | | | | | — | | | | | | | — | | |
Transaction costs
|
| | | | — | | | | | | — | | | | | | 668,779 | | | | | | | — | | |
Adjustment to deferred taxes
|
| | | | — | | | | | | 138,648 | | | | | | — | | | | | | | — | | |
Change in tax status
|
| | | | — | | | | | | — | | | | | | 187,779 | | | | | | | — | | |
Income Tax Payable: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Change in valuation allowance
|
| | | | 3,596,998 | | | | | | 1,854,006 | | | | | | — | | | | | | | — | | |
Other
|
| | | | 3,261 | | | | | | 14,115 | | | | | | 3,399 | | | | | | | — | | |
Income tax (benefit) expense
|
| | | $ | (492,823) | | | | | $ | 1,383,268 | | | | | $ | 822,140 | | | | | | $ | 90,605 | | |
| | |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
Deferred tax assets: | | | | | | | | | | | | | |
Deferred rent
|
| | | $ | 107,988 | | | | | $ | 57,780 | | |
Accrued Expenses
|
| | | | 769,754 | | | | | | 351,220 | | |
Net operating loss carryforwards
|
| | | | 2,528,555 | | | | | | 150,367 | | |
Management Fees (the Practice)
|
| | | | 1,827,864 | | | | | | 1,814,880 | | |
Impaired assets
|
| | | | 2,086,611 | | | | | | — | | |
Deferred revenue
|
| | | | 182,467 | | | | | | 58,348 | | |
Stock Based Compensation
|
| | | | 68,505 | | | | | | 26,120 | | |
Total gross deferred tax assets
|
| | | | 7,571,744 | | | | | | 2,458,715 | | |
Valuation allowance
|
| | | | (5,451,003) | | | | | | (1,854,005) | | |
Net deferred tax assets
|
| | | | 2,120,741 | | | | | | 604,710 | | |
Deferred tax liabilities: | | | | | | | | | | | | | |
Plant and equipment, principally due to differences in depreciation
and capitalized interest |
| | | | (1,905,646) | | | | | | (1,746,345) | | |
Management Fees (TOI Parent)
|
| | | | (1,827,864) | | | | | | (1,814,881) | | |
Total gross deferred liabilities
|
| | | | (3,733,510) | | | | | | (3,561,226) | | |
Net deferred tax liabilities
|
| | | $ | (1,612,769) | | | | | $ | (2,956,516) | | |
| | |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
Beginning balance of unrecognized tax benefits
|
| | | $ | 1,902,659 | | | | | $ | — | | |
Additions based on tax positions related to the current year
|
| | | | — | | | | | | 1,902,659 | | |
Additions based on tax positions of prior years
|
| | | | — | | | | | | — | | |
Reductions due to lapse of applicable statute of limitation
|
| | | | — | | | | | | — | | |
Settlements
|
| | | | — | | | | | | — | | |
Ending balance of unrecognized tax benefits
|
| | | $ | 1,902,659 | | | | | $ | 1,902,659 | | |
Option-pricing method
|
| |||
Valuation date
|
| |
11/6/2020
|
|
Liquidity event date
|
| |
12/31/2024
|
|
Time to liquidity
|
| |
4.15 years
|
|
Total equity value
|
| |
$82,000,000
|
|
Annual dividend rate for common stock
|
| |
0.0%
|
|
Annualized volatility
|
| |
40.0%
|
|
Risk-free rate (continuously compounding)
|
| |
0.3%
|
|
Common-stock equivalent method
|
| |||
Valuation date
|
| |
11/6/2020
|
|
Liquidity event date
|
| |
12/31/2024
|
|
Time to liquidity
|
| |
4.15 years
|
|
Total equity value
|
| |
$82,000,000
|
|
Value per common stock equivalent
|
| |
$562.06
|
|
| | |
2020
|
| |
2019
|
|
Valuation assumptions | | | | | | | |
Expected dividend yield
|
| |
—%
|
| |
—%
|
|
Expected volatility
|
| |
35.00% to 40.20%
|
| |
54.30%
|
|
Risk-free interest rate
|
| |
0.51% to 2.62%
|
| |
1.60% to 2.62%
|
|
Expected term (years)
|
| |
7
|
| |
7
|
|
Stock options
|
| |
Number of
shares |
| |
Weighted
average exercise price |
| |
Weighted average
remaining contractual term |
| |
Aggregate
intrinsic value |
| ||||||||||||
Balance at January 1, 2020
|
| | | | 9,965.00 | | | | | $ | 496.10 | | | | | | | | | | | | | | |
Granted
|
| | | | 7,170.00 | | | | | | 499.94 | | | | | | | | | | | | | | |
Exercised
|
| | | | (100.00) | | | | | | 496.10 | | | | | | | | | | | | | | |
Forfeited
|
| | | | (2,175.00) | | | | | | 496.10 | | | | | | | | | | | | | | |
Expired
|
| | | | — | | | | | | — | | | | | | | | | | | | | | |
Balance at December 31, 2020
|
| | | | 14,860.00 | | | | | $ | 497.95 | | | | | | 8.94 | | | | | $ | — | | |
Vested Options Exercisable at December 31, 2020
|
| | | | 1,270.00 | | | | | $ | 496.10 | | | | | | 8.25 | | | | | $ | — | | |
Stock options
|
| |
Number of
shares |
| |
Weighted
average exercise price |
| |
Weighted average
remaining contractual term |
| |
Aggregate
intrinsic value |
| ||||||||||||
Balance at January 1, 2019
|
| | | | — | | | | | $ | — | | | | | | | | | | | | | | |
Granted
|
| | | | 13,945.00 | | | | | | 496.10 | | | | | | | | | | | | | | |
Exercised
|
| | | | — | | | | | | — | | | | | | | | | | | | | | |
Forfeited
|
| | | | (3,980.00) | | | | | | 496.10 | | | | | | | | | | | | | | |
Expired
|
| | | | — | | | | | | — | | | | | | | | | | | | | | |
Balance at December 31, 2019
|
| | | | 9,965.00 | | | | | $ | 496.10 | | | | | | 9.39 | | | | | $ | — | | |
Vested Options Exercisable at December 31, 2019
|
| | | | 318.75 | | | | | $ | 496.10 | | | | | | 8.70 | | | | | $ | — | | |
| | |
Number of
shares |
| |||
Balance at January 1, 2020
|
| | | | 93 | | |
Granted
|
| | | | 188 | | |
Forfeited
|
| | | | (43) | | |
Balance at December 31, 2020
|
| | | | 238 | | |
| | |
Number of
shares |
| |||
Balance at January 1, 2019
|
| | | | — | | |
Granted
|
| | | | 100 | | |
Forfeited
|
| | | | (7) | | |
Balance at December 31, 2019
|
| | | | 93 | | |
| | |
Capital
leases |
| |
Operating
leases |
| ||||||
Year ending December 31: | | | | | | | | | | | | | |
2021
|
| | | $ | 36,736 | | | | | $ | 3,095,533 | | |
2022
|
| | | | 36,736 | | | | | | 2,831,516 | | |
2023
|
| | | | 36,736 | | | | | | 2,559,759 | | |
2024
|
| | | | 30,614 | | | | | | 2,060,385 | | |
2025
|
| | | | — | | | | | | 1,510,935 | | |
Thereafter
|
| | | | — | | | | | | 793,363 | | |
Total minimum lease payments
|
| | | $ | 140,822 | | | | | $ | 12,851,491 | | |
Less: amount representing interest (6% interest rate)
|
| | | | (12,587) | | | | | | | | |
Present value of net minimum capital lease payments
|
| | | | 128,235 | | | | | | | | |
Less current installments of obligations under capital leases
|
| | | | (31,191) | | | | | | | | |
Obligations under capital leases, excluding current installments
|
| | | $ | 97,044 | | | | | | | | |
| Fair value of assets acquired and liabilities assumed: | | | | | | | |
|
Cash
|
| | | $ | 505,317 | | |
|
Accounts receivable
|
| | | | 11,097,858 | | |
|
Inventories
|
| | | | 2,707,640 | | |
|
Prepaid expenses and other
|
| | | | 144,447 | | |
|
Property and equipment, net
|
| | | | 388,511 | | |
|
Goodwill
|
| | | | 14,076,674 | | |
|
Intangible assets, net
|
| | | | 25,234,000 | | |
|
Total assets acquired
|
| | | $ | 54,154,447 | | |
|
Accounts payable
|
| | | $ | 136,989 | | |
|
Accrued expenses and other current liabilities
|
| | | | 7,658,103 | | |
|
Deferred tax liability
|
| | | | 1,400,653 | | |
|
Total liabilities assumed
|
| | | $ | 9,195,745 | | |
|
Net assets acquired
|
| | | $ | 44,958,702 | | |
| | |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
Assets | | | | | | | | | | | | | |
Current assets:
|
| | | | | | | | | | | | |
Cash
|
| | | $ | 19,502 | | | | | $ | 2,440,898 | | |
Accounts receivable
|
| | | | 17,145,911 | | | | | | 14,616,261 | | |
Other receivables
|
| | | | 49,163 | | | | | | — | | |
Inventory
|
| | | | 4,354,232 | | | | | | 3,888,988 | | |
Prepaid expenses
|
| | | | 719,063 | | | | | | 72,226 | | |
Total current assets
|
| | | | 22,287,871 | | | | | | 21,018,373 | | |
Other assets
|
| | | | 200,600 | | | | | | 101,746 | | |
Goodwill
|
| | | | 150,000 | | | | | | — | | |
Total assets
|
| | | $ | 22,638,471 | | | | | $ | 21,120,119 | | |
Liabilities | | | | | | | | | | | | | |
Current liabilities:
|
| | | | | | | | | | | | |
Accounts payable
|
| | | | 11,953,239 | | | | | | 7,732,372 | | |
Accrued expenses and other current liabilities
|
| | | | 6,038,584 | | | | | | 3,087,119 | | |
Current portion of long-term debt
|
| | | | 2,000,000 | | | | | | — | | |
Amounts due to affiliates
|
| | | | 19,883,097 | | | | | | 16,897,690 | | |
Total current liabilities
|
| | | | 39,874,920 | | | | | | 27,717,181 | | |
Other non-current liabilities
|
| | | | 551,228 | | | | | | — | | |
Total liabilities
|
| | | $ | 40,426,148 | | | | | $ | 27,717,181 | | |
| | |
Weighted
average amortization period |
| |
Gross carrying
amount |
| |
Accumulated
amortization |
| |
Net carrying
amount |
| |||||||||
Intangible assets | | | | | | | | | | | | | | | | | | | | | | |
Amortizing intangible assets: | | | | | | | | | | | | | | | | | | | | | | |
Payor contracts
|
| |
10 years
|
| | | $ | 18,900,000 | | | | | $ | (4,283,045) | | | | | $ | 14,616,955 | | |
Trade names
|
| |
10 years
|
| | | | 4,170,000 | | | | | | (944,989) | | | | | | 3,225,011 | | |
Clinical contracts
|
| |
10 years
|
| | | | 2,164,000 | | | | | | (490,397) | | | | | | 1,673,603 | | |
Total intangible assets
|
| | | | | | $ | 25,234,000 | | | | | $ | (5,718,431) | | | | | $ | 19,515,569 | | |
| | |
Weighted
average amortization period |
| |
Gross
carrying amount |
| |
Accumulated
amortization |
| |
Net carrying
amount |
| |||||||||
Intangible assets | | | | | | | | | | | | | | | | | | | | | | |
Amortizing intangible assets: | | | | | | | | | | | | | | | | | | | | | | |
Payor contracts
|
| |
10 years
|
| | | $ | 18,900,000 | | | | | $ | (2,420,250) | | | | | $ | 16,479,750 | | |
Trade names
|
| |
10 years
|
| | | | 4,170,000 | | | | | | (533,992) | | | | | | 3,636,008 | | |
Clinical contracts
|
| |
10 years
|
| | | | 2,164,000 | | | | | | (277,112) | | | | | | 1,886,888 | | |
Total intangible assets
|
| | | | | | $ | 25,234,000 | | | | | $ | (3,231,354) | | | | | $ | 22,002,646 | | |
| | |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
Patient services
|
| | | $ | 9,044,003 | | | | | $ | 8,894,003 | | |
Dispensary
|
| | | | 4,551,002 | | | | | | 4,551,002 | | |
Clinical trials & other
|
| | | | 631,669 | | | | | | 631,669 | | |
Total goodwill
|
| | | $ | 14,226,674 | | | | | $ | 14,076,674 | | |
| | |
2020
|
| |
2019
|
| ||||||
Balance as of January 1: | | | | | | | | | | | | | |
Gross goodwill
|
| | | $ | 14,076,674 | | | | | $ | 14,076,674 | | |
Goodwill acquired during the period
|
| | | | 150,000 | | | | | | — | | |
Goodwill, net as of December 31
|
| | | $ | 14,226,674 | | | | | $ | 14,076,674 | | |
| | |
Year Ended December 31
|
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Net loss attributable to TOI Parent, Inc.
|
| | | $ | (14,321,235) | | | | | | (4,021,395) | | | | | | (1,993,628) | | |
Basic and diluted weighted average shares outstanding(1)
|
| | | | 23,786 | | | | | | 10,000 | | | | | | 10,000 | | |
Basic and diluted net loss per share attributable to TOI Parent, Inc.
|
| | | $ | (602.09) | | | | | | (402.14) | | | | | | (199.36) | | |
| | |
Year Ended December 31
|
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Stock options
|
| | | | 14,860 | | | | | | 9,965 | | | | | | 2,560 | | |
| | |
Year Ended
December 31, 2020 |
| |
Year Ended
December 31, 2019 |
| |
Period from
September 20, 2018 through December 31, 2018 |
| | |
Period from
January 1, 2018 through September 19, 2018 |
| ||||||||||||
| | |
Successor
|
| | |
Predecessor
|
| ||||||||||||||||||
Revenue | | | | | | | | | | | | | | | | | | | | | | | | | | |
Patient services
|
| | | $ | 116,816,797 | | | | | $ | 97,624,881 | | | | | $ | 21,284,785 | | | | | | $ | 48,527,028 | | |
Dispensary
|
| | | | 63,889,875 | | | | | | 49,953,992 | | | | | | 13,201,609 | | | | | | | 26,757,955 | | |
Clinical trials & other
|
| | | | 6,807,989 | | | | | | 7,826,311 | | | | | | 2,872,995 | | | | | | | 515,742 | | |
Consolidated revenue
|
| | | | 187,514,661 | | | | | | 155,405,184 | | | | | | 37,359,389 | | | | | | | 75,800,725 | | |
Direct costs | | | | | | | | | | | | | | | | | | | | | | | | | | |
Patient services
|
| | | | 95,746,831 | | | | | | 81,053,345 | | | | | | 16,650,583 | | | | | | | 34,454,497 | | |
Dispensary
|
| | | | 53,906,958 | | | | | | 43,455,898 | | | | | | 12,015,032 | | | | | | | 23,492,682 | | |
Clinical trials & other
|
| | | | 981,896 | | | | | | 955,321 | | | | | | 265,733 | | | | | | | — | | |
Total segment direct costs
|
| | | | 150,635,685 | | | | | | 125,464,564 | | | | | | 28,931,348 | | | | | | | 57,947,179 | | |
Depreciation expense | | | | | | | | | | | | | | | | | | | | | | | | | | |
Patient services
|
| | | | 940,130 | | | | | | 349,875 | | | | | | 47,013 | | | | | | | 281,367 | | |
Dispensary
|
| | | | 366 | | | | | | — | | | | | | — | | | | | | | — | | |
Clinical trials & other
|
| | | | 6,500 | | | | | | 2,001 | | | | | | 63 | | | | | | | 374 | | |
Total segment depreciation expense
|
| | | | 946,996 | | | | | | 351,876 | | | | | | 47,076 | | | | | | | 281,741 | | |
Amortization of intangible assets | | | | | | | | | | | | | | | | | | | | | | | | | | |
Patient services
|
| | | | 1,862,796 | | | | | | 1,890,000 | | | | | | 530,250 | | | | | | | — | | |
Dispensary
|
| | | | — | | | | | | — | | | | | | — | | | | | | | — | | |
Clinical trials & other
|
| | | | 213,285 | | | | | | 216,400 | | | | | | 60,712 | | | | | | | — | | |
Total segment amortization
|
| | | | 2,076,081 | | | | | | 2,106,400 | | | | | | 590,962 | | | | | | | — | | |
Operating income | | | | | | | | | | | | | | | | | | | | | | | | | | |
Patient services
|
| | | | 18,267,040 | | | | | | 14,331,661 | | | | | | 4,056,939 | | | | | | | 13,791,164 | | |
Dispensary
|
| | | | 9,982,551 | | | | | | 6,498,094 | | | | | | 1,186,577 | | | | | | | 3,265,273 | | |
Clinical trials & other
|
| | | | 5,606,308 | | | | | | 6,652,589 | | | | | | 2,546,487 | | | | | | | 515,368 | | |
Total segment operating income
|
| | | | 33,855,899 | | | | | | 27,482,344 | | | | | | 7,790,003 | | | | | | | 17,571,805 | | |
Selling, general and administrative expense
|
| | | | 41,897,302 | | | | | | 29,643,511 | | | | | | 8,833,475 | | | | | | | 11,555,910 | | |
Non-segment depreciation and amortization
|
| | | | 154,500 | | | | | | 483,585 | | | | | | 126,424 | | | | | | | 56,455 | | |
Total consolidated operating (loss) income
|
| | | $ | (8,195,903) | | | | | $ | (2,644,752) | | | | | $ | (1,169,896) | | | | | | $ | 5,959,440 | | |
| | |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
Assets | | | | | | | | | | | | | |
Patient services
|
| | | $ | 36,445,920 | | | | | $ | 36,340,228 | | |
Dispensary
|
| | | | 4,318,946 | | | | | | 2,544,778 | | |
Clinical trials & other
|
| | | | 5,486,965 | | | | | | 4,463,566 | | |
Non-segment assets
|
| | | | 19,436,737 | | | | | | 16,172,166 | | |
Total assets
|
| | | $ | 65,688,568 | | | | | $ | 59,520,738 | | |
| | |
September 30,2021
|
| |
December 31, 2020
|
| ||||||
|
(unaudited)
|
| | | | | | | |||||
Assets: | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash
|
| | | $ | 204,865 | | | | | $ | 916,987 | | |
Prepaid expenses
|
| | | | 82,245 | | | | | | 152,474 | | |
Total current assets
|
| | | | 287,110 | | | | | | 1,069,461 | | |
Cash and investments held in Trust Account
|
| | | | 230,012,623 | | | | | | 230,254,149 | | |
Total Assets
|
| | | $ | 230,299,733 | | | | | $ | 231,323,610 | | |
Liabilities, Class A Common Stock Subject to Possible Redemption, and Stockholders’ Equity (Deficit):
|
| | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 961,084 | | | | | $ | — | | |
Accrued expenses
|
| | | | 2,625,925 | | | | | | 50,000 | | |
Accrued expenses – related parties
|
| | | | 17,500 | | | | | | 17,500 | | |
Franchise tax payable
|
| | | | 29,639 | | | | | | 200,050 | | |
Total current liabilities
|
| | | | 3,634,148 | | | | | | 267,550 | | |
Deferred underwriting commissions
|
| | | | 6,300,000 | | | | | | 6,300,000 | | |
Derivative warrant liabilities
|
| | | | 15,268,170 | | | | | | 18,791,170 | | |
Total liabilities
|
| | | | 25,202,318 | | | | | | 25,358,720 | | |
Commitments and Contingencies | | | | | | | | | | | | | |
Class A common stock subject to possible redemption, $0.0001 par
value; 23,000,000 shares at $10.00 per share as of September 30, 2021 and December 31, 2020 |
| | | | 230,000,000 | | | | | | 230,000,000 | | |
Stockholders’ Equity (Deficit): | | | | | | | | | | | | | |
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding
|
| | | | — | | | | | | — | | |
Class A common stock, $0.0001 par value; 100,000,000 shares authorized; no non-redeemable shares issued or outstanding
|
| | | | — | | | | | | — | | |
Class B common stock, $0.0001 par value; 10,000,000 shares authorized; 5,750,000 shares issued and outstanding as of September 30, 2021 and December 31, 2020
|
| | | | 575 | | | | | | 575 | | |
Accumulated deficit
|
| | | | (24,903,160) | | | | | | (24,035,685) | | |
Total stockholders’ equity (deficit)
|
| | | | (24,902,585) | | | | | | (24,035,110) | | |
Total Liabilities, Class A Common Stock Subject to Possible Redemption, and Stockholders’ Equity (Deficit)
|
| | | $ | 230,299,733 | | | | | $ | 231,323,610 | | |
| | |
For the Three Months
Ended September 30, |
| |
For the Nine Months
Ended September 30, |
| ||||||||||||||||||
|
2021
|
| |
2020
|
| |
2021
|
| |
2020
|
| ||||||||||||||
General and administrative expenses
|
| | | $ | 1,472,921 | | | | | $ | 95,980 | | | | | $ | 4,141,810 | | | | | $ | 208,562 | | |
General and administrative expenses – related party
|
| | | | 52,500 | | | | | | 52,500 | | | | | | 157,500 | | | | | | 122,500 | | |
Franchise tax expense
|
| | | | 50,411 | | | | | | 50,000 | | | | | | 149,639 | | | | | | 149,750 | | |
Loss from operations
|
| | | | (1,575,832) | | | | | | (198,480) | | | | | | (4,448,949) | | | | | | (480,812) | | |
Other income (expense)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Interest income from investments in Trust Account
|
| | | | 5,798 | | | | | | 73,393 | | | | | | 58,474 | | | | | | 194,901 | | |
Change in fair value of derivative warrant liabilities
|
| | | | 1,138,000 | | | | | | (2,279,000) | | | | | | 3,523,000 | | | | | | (5,198,670) | | |
Financing cost – derivative warrant liabilities
|
| | | | — | | | | | | — | | | | | | — | | | | | | (315,080) | | |
Loss before income tax expense
|
| | | | (432,034) | | | | | | (2,404,087) | | | | | | (867,475) | | | | | | (5,799,661) | | |
Income tax expense
|
| | | | — | | | | | | (12,573) | | | | | | — | | | | | | (12,573) | | |
Net loss
|
| | | $ | (432,034) | | | | | $ | (2,416,660) | | | | | $ | (867,475) | | | | | $ | (5,812,234) | | |
Weighted average shares outstanding of Class A common stock, basic and
diluted |
| | | | 23,000,000 | | | | | | 23,000,000 | | | | | | 23,000,000 | | | | | | 16,956,204 | | |
Basic and diluted net loss per share, Class A
|
| | | $ | (0.02) | | | | | $ | (0.08) | | | | | $ | (0.03) | | | | | $ | (0.26) | | |
Weighted average shares outstanding of Class B common stock, basic
|
| | | | 5,750,000 | | | | | | 5,750,000 | | | | | | 5,750,000 | | | | | | 5,552,920 | | |
Weighted average shares outstanding of Class B common stock, diluted
|
| | | | 5,750,000 | | | | | | 5,750,000 | | | | | | 5,750,000 | | | | | | 5,750,000 | | |
Basic and diluted net loss per share,
Class B |
| | | $ | (0.02) | | | | | $ | (0.08) | | | | | $ | (0.03) | | | | | $ | (0.26) | | |
| | |
Common Stock
|
| |
Additional
Paid-In Capital |
| |
Accumulated
Deficit |
| |
Total
Stockholders’ Deficit |
| ||||||||||||||||||||||||||||||
|
Class A
|
| |
Class B
|
| ||||||||||||||||||||||||||||||||||||||
|
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||
Balance – December 31, 2020 (as
restated) |
| | | | — | | | | | $ | — | | | | | | 5,750,000 | | | | | $ | 575 | | | | | $ | — | | | | | $ | (24,035,685) | | | | | $ | (24,035,110) | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,685,300 | | | | | | 5,685,300 | | |
Balance – March 31, 2021 (unaudited) (as restated)
|
| | | | — | | | | | $ | — | | | | | | 5,750,000 | | | | | $ | 575 | | | | | $ | — | | | | | $ | (18,350,385) | | | | | $ | (18,349,810) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (6,120,741) | | | | | | (6,120,741) | | |
Balance – June 30, 2021 (unaudited) (as restated)
|
| | | | — | | | | | $ | — | | | | | | 5,750,000 | | | | | $ | 575 | | | | | $ | — | | | | | $ | (24,471,126) | | | | | $ | (24,470,551) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (432,034) | | | | | | (432,034) | | |
Balance – September 30, 2021 (unaudited)
|
| | | | — | | | | | $ | — | | | | | | 5,750,000 | | | | | $ | 575 | | | | | $ | — | | | | | $ | (24,903,160) | | | | | $ | (24,902,585) | | |
| | |
Common Stock
|
| |
Additional
Paid-In Capital |
| |
Accumulated
Deficit |
| |
Total
Stockholders’ Equity (Deficit) |
| ||||||||||||||||||||||||||||||
|
Class A
|
| |
Class B
|
| ||||||||||||||||||||||||||||||||||||||
|
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||
Balance – December 31,
2019 |
| | | | — | | | | | $ | — | | | | | | 5,750,000 | | | | | $ | 575 | | | | | $ | 24,425 | | | | | $ | (2,300) | | | | | $ | 22,700 | | |
Sale of private placement
warrants to Sponsor in private placement, less fair value allocation to derivative warrant liabilities |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,120,000 | | | | | | — | | | | | | 1,120,000 | | |
Accretion of Class A common stock to redemption amount
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,144,425) | | | | | | (15,693,481) | | | | | | (16,837,906) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (776,839) | | | | | | (776,839) | | |
Balance – March 31, 2020 (unaudited) (as restated)
|
| | | | — | | | | | $ | — | | | | | | 5,750,000 | | | | | $ | 575 | | | | | $ | — | | | | | $ | (16,472,620) | | | | | $ | (16,472,045) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,618,735) | | | | | | (2,618,735) | | |
Balance – June 30, 2020 (unaudited) (as restated)
|
| | | | — | | | | | $ | — | | | | | | 5,750,000 | | | | | $ | 575 | | | | | $ | — | | | | | $ | (19,091,355) | | | | | $ | (19,090,780) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,416,660) | | | | | | (2,416,660) | | |
Balance – September 30, 2020
(unaudited) (as restated) |
| | | | — | | | | | $ | — | | | | | | 5,750,000 | | | | | $ | 575 | | | | | $ | — | | | | | $ | (21,508,015) | | | | | $ | (21,507,440) | | |
| | |
For the Nine Months Ended September 30,
|
| |||||||||
|
2021
|
| |
2020
|
| ||||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | |
Net loss
|
| | | $ | (867,475) | | | | | $ | (5,812,234) | | |
Adjustments to reconcile net loss to net cash used in operating activities:
|
| | | | | | | | | | | | |
Interest earned on investments held in Trust Account
|
| | | | (58,474) | | | | | | (194,901) | | |
Financing cost – derivative warrant liabilities
|
| | | | — | | | | | | 315,080 | | |
Change in fair value of derivative warrant liabilities
|
| | | | (3,523,000) | | | | | | 5,198,670 | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | |
Prepaid expenses
|
| | | | 70,229 | | | | | | (202,187) | | |
Accounts payable
|
| | | | 961,084 | | | | | | 1,329 | | |
Accrued expenses
|
| | | | 2,575,925 | | | | | | 26,500 | | |
Accrued expenses – related parties
|
| | | | — | | | | | | 17,500 | | |
Franchise tax payable
|
| | | | (170,411) | | | | | | 149,300 | | |
Net cash used in operating activities
|
| | | | (1,012,122) | | | | | | (500,943) | | |
Cash Flows from Investing Activities | | | | | | | | | | | | | |
Cash deposited in Trust Account
|
| | | | — | | | | | | (230,000,000) | | |
Investment income released from Trust Account for working
capital |
| | | | 300,000 | | | | | | — | | |
Net cash provided by (used in) investing activities
|
| | | | 300,000 | | | | | | (230,000,000) | | |
Cash Flows from Financing Activities: | | | | | | | | | | | | | |
Proceeds received from initial public offering, gross
|
| | | | — | | | | | | 230,000,000 | | |
Proceeds received from private placement
|
| | | | — | | | | | | (4,125,486) | | |
Offering costs paid
|
| | | | — | | | | | | 5,600,000 | | |
Net cash provided by financing activities
|
| | | | — | | | | | | 231,474,514 | | |
Net change in cash
|
| | | | (712,122) | | | | | | 973,571 | | |
Cash – beginning of the period
|
| | |
|
916,987
|
| | | |
|
25,000
|
| |
Cash – end of the period
|
| | | $ | 204,865 | | | | | $ | 998,571 | | |
Supplemental disclosure of noncash activities: | | | | | | | | | | | | | |
Deferred underwriting commissions in connection with the initial public offering
|
| | | $ | — | | | | | $ | 6,300,000 | | |
As of March 31, 2021 (unaudited)
|
| |
As Reported
|
| |
Adjustment
|
| |
As Restated
|
| |||||||||
Total assets
|
| | | $ | 231,036,262 | | | | | $ | — | | | | | $ | 231,036,262 | | |
Total liabilities
|
| | | $ | 19,386,072 | | | | | $ | — | | | | | $ | 19,386,072 | | |
Class A common stock subject to possible redemption
|
| | | | 206,650,180 | | | | | | 23,349,820 | | | | | | 230,000,000 | | |
Preferred stock
|
| | | | — | | | | | | — | | | | | | — | | |
Class A common stock
|
| | | | 233 | | | | | | (233) | | | | | | — | | |
Class B common stock
|
| | | | 575 | | | | | | — | | | | | | 575 | | |
Additional paid-in capital
|
| | | | 7,656,106 | | | | | | (7,656,106) | | | | | | — | | |
Accumulated deficit
|
| | | | (2,656,904) | | | | | | (15,693,481) | | | | | | (18,350,385) | | |
Total stockholders’ equity (deficit)
|
| | | $ | 5,000,010 | | | | | $ | (23,349,820) | | | | | $ | (18,349,810) | | |
As of March 31, 2021 (unaudited)
|
| |
As Reported
|
| |
Adjustment
|
| |
As Restated
|
| |||||||||
Total Liabilities, Class A Common Stock Subject to Possible
Redemption and Stockholders’ Equity (Deficit) |
| | | $ | 231,036,262 | | | | | $ | — | | | | | $ | 231,036,262 | | |
Shares of Class A common stock subject to possible redemption
|
| | | | 20,665,018 | | | | | | 2,334,982 | | | | | | 23,000,000 | | |
Shares of Class A common stock
|
| | | | 2,334,982 | | | | | | (2,334,982) | | | | | | — | | |
For the Three Months Ended March 31, 2021 (unaudited)
|
| ||||||||||||||||||
| | |
As Reported
|
| |
Adjustment
|
| |
As Restated
|
| |||||||||
Supplemental Disclosure of Noncash Financing Activities: | | | | | | | | | | | | | | | | | | | |
Change in value of Class A common stock subject to possible redemption
|
| | | $ | 5,685,300 | | | | | $ | (5,685,300) | | | | | $ | — | | |
As of June 30, 2021 (unaudited)
|
| |
As Reported
|
| |
Adjustment
|
| |
As Restated
|
| |||||||||
Total assets
|
| | | $ | 230,754,006 | | | | | $ | — | | | | | $ | 230,754,006 | | |
Total liabilities
|
| | | $ | 25,224,557 | | | | | $ | — | | | | | $ | 25,224,557 | | |
Class A common stock subject to possible redemption
|
| | | | 200,529,440 | | | | | | 29,470,560 | | | | | | 230,000,000 | | |
Preferred stock
|
| | | | — | | | | | | — | | | | | | — | | |
Class A common stock
|
| | | | 295 | | | | | | (295) | | | | | | — | | |
Class B common stock
|
| | | | 575 | | | | | | — | | | | | | 575 | | |
Additional paid-in capital
|
| | | | 13,776,784 | | | | | | (13,776,784) | | | | | | — | | |
Accumulated deficit
|
| | | | (8,777,645) | | | | | | (15,693,481) | | | | | | (24,471,126) | | |
Total stockholders’ equity (deficit)
|
| | | $ | 5,000,009 | | | | | $ | (29,470,560) | | | | | $ | (24,470,551) | | |
Total Liabilities, Class A Common Stock Subject to Possible
Redemption and Stockholders’ Equity (Deficit) |
| | | $ | 230,754,006 | | | | | $ | — | | | | | $ | 230,754,006 | | |
Shares of Class A common stock subject to possible redemption
|
| | | | 20,052,944 | | | | | | 2,947,056 | | | | | | 23,000,000 | | |
Shares of Class A common stock
|
| | | | 2,947,056 | | | | | | (2,947,056) | | | | | | — | | |
For the Six Months Ended June 30, 2021 (unaudited)
|
| ||||||||||||||||||
| | |
As Reported
|
| |
Adjustment
|
| |
As Restated
|
| |||||||||
Supplemental Disclosure of Noncash Financing Activities: | | | | | | | | | | | | | | | | | | | |
Change in value of Class A common stock subject to possible redemption
|
| | | $ | (435,440) | | | | | $ | 435,440 | | | | | $ | — | | |
| | |
Earnings (Loss) Per Share
|
| |||||||||||||||
| | |
As Previously
Restated |
| |
Adjustment
|
| |
Restated
|
| |||||||||
For the three months ended March 31, 2021 (unaudited) | | | | | | | | | | | | | | | | | | | |
Net income
|
| | | $ | 5,685,300 | | | | | $ | — | | | | | $ | 5,685,300 | | |
Weighted average shares outstanding – Class A common stock
|
| | | | 23,000,000 | | | | | | — | | | | | | 23,000,000 | | |
Basic and diluted earnings per share – Class A common stock
|
| | | $ | — | | | | | $ | 0.20 | | | | | $ | 0.20 | | |
Weighted average shares outstanding – Class B common stock
|
| | | | 5,750,000 | | | | | | — | | | | | | 5,750,000 | | |
Basic and diluted earnings per share – Class B common stock
|
| | | $ | 0.99 | | | | | $ | (0.79) | | | | | $ | 0.20 | | |
For the three months ended June 30, 2021 (unaudited) | | | | | | | | | | | | | | | | | | | |
Net loss
|
| | | $ | (6,120,741) | | | | | $ | — | | | | | $ | (6,120,741) | | |
Weighted average shares outstanding – Class A common stock
|
| | | | 23,000,000 | | | | | | — | | | | | | 23,000,000 | | |
Basic and diluted earnings per share – Class A common stock
|
| | | $ | — | | | | | $ | (0.21) | | | | | $ | (0.21) | | |
Weighted average shares outstanding – Class B common stock
|
| | | | 5,750,000 | | | | | | — | | | | | | 5,750,000 | | |
Basic and diluted earnings per share – Class B common stock
|
| | | $ | (1.06) | | | | | $ | 0.85 | | | | | $ | (0.21) | | |
For the six months ended June 30, 2021 (unaudited) | | | | | | | | | | | | | | | | | | | |
Net loss
|
| | | $ | (435,441) | | | | | $ | — | | | | | $ | (435,441) | | |
Weighted average shares outstanding – Class A common stock
|
| | | | 23,000,000 | | | | | | — | | | | | | 23,000,000 | | |
Basic and diluted earnings per share – Class A common stock
|
| | | $ | — | | | | | $ | (0.02) | | | | | $ | (0.02) | | |
Weighted average shares outstanding – Class B common stock
|
| | | | 5,750,000 | | | | | | — | | | | | | 5,750,000 | | |
Basic and diluted earnings per share – Class B common stock
|
| | | $ | (0.08) | | | | | $ | 0.06 | | | | | $ | (0.02) | | |
| | |
For the Three Months Ended September 30,
|
| |
For the Nine Months Ended September 30
|
| ||||||||||||||||||||||||||||||||||||||||||
|
2021
|
| |
2020
|
| |
2021
|
| |
2020
|
| ||||||||||||||||||||||||||||||||||||||
|
Class A
|
| |
Class B
|
| |
Class A
|
| |
Class B
|
| |
Class A
|
| |
Class B
|
| |
Class A
|
| |
Class B
|
| ||||||||||||||||||||||||||
Basic and diluted net income (loss) per share of common stock:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Numerator: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allocation of net income – basic
|
| | | $ | (345,627) | | | | | $ | (86,407) | | | | | $ | (1,933,328) | | | | | $ | (483,332) | | | | | $ | (693,980) | | | | | $ | (173,495) | | | | | $ | (4,378,377) | | | | | $ | (1,433,857) | | |
Allocation of net income – diluted
|
| | | $ | (345,627) | | | | | $ | (86,407) | | | | | $ | (1,933,328) | | | | | $ | (483,332) | | | | | $ | (693,980) | | | | | $ | (173,495) | | | | | $ | (4,340,374) | | | | | $ | (1,471,860) | | |
Denominator: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic weighted average common shares outstanding
|
| | | | 23,000,000 | | | | | | 5,750,000 | | | | | | 23,000,000 | | | | | | 5,750,000 | | | | | | 23,000,000 | | | | | | 5,750,000 | | | | | | 16,956,204 | | | | | | 5,552,920 | | |
Diluted weighted average common shares outstanding
|
| | | | 23,000,000 | | | | | | 5,750,000 | | | | | | 23,000,000 | | | | | | 5,750,000 | | | | | | 23,000,000 | | | | | | 5,750,000 | | | | | | 16,956,204 | | | | | | 5,750,000 | | |
Basic net income (loss) per share of common stock
|
| | | $ | (0.02) | | | | | $ | (0.02) | | | | | $ | (0.08) | | | | | $ | (0.08) | | | | | $ | (0.03) | | | | | $ | (0.03) | | | | | $ | (0.26) | | | | | $ | (0.26) | | |
Diluted net income (loss) per share of common stock
|
| | | $ | (0.02) | | | | | $ | (0.02) | | | | | $ | (0.08) | | | | | $ | (0.08) | | | | | $ | (0.03) | | | | | $ | (0.03) | | | | | $ | (0.26) | | | | | $ | (0.26) | | |
|
Gross proceeds
|
| | | $ | 230,000,000 | | |
| Less: | | | | | | | |
|
Amount allocated to Public Warrants
|
| | | | (6,727,500) | | |
|
Class A common stock issuance costs
|
| | | | (10,110,406) | | |
| Plus: | | | | | | | |
|
Accretion of carrying value to redemption value
|
| | | | 16,837,906 | | |
|
Class A common stock subject to possible redemption
|
| | | $ | 230,000,000 | | |
|
Description
|
| |
Quoted Prices in
Active Markets (Level 1) |
| |
Significant Other
Observable Inputs (Level 2) |
| |
Significant Other
Unobservable Inputs (Level 3) |
| |||||||||
| Assets | | | | | | | | | | | | | | | | | | | |
|
Investments held in Trust Account
|
| | | $ | 230,012,623 | | | | | $ | — | | | | | $ | — | | |
| Liabilities | | | | | | | | | | | | | | | | | | | |
|
Derivative warrant liabilities – Public Warrants
|
| | | $ | 9,257,500 | | | | | $ | — | | | | | $ | — | | |
|
Derivative warrant liabilities – Private Warrants
|
| | | $ | — | | | | | $ | — | | | | | $ | 6,010,670 | | |
|
Description
|
| |
Quoted Prices in
Active Markets (Level 1) |
| |
Significant Other
Observable Inputs (Level 2) |
| |
Significant Other
Unobservable Inputs (Level 3) |
| |||||||||
| Assets | | | | | | | | | | | | | | | | | | | |
|
Assets held in Trust Account:
|
| | | | | | | | | | | | | | | | | | |
|
U.S. Treasury securities
|
| | | $ | 230,253,395 | | | | | $ | — | | | | | $ | — | | |
|
Cash equivalents – money market funds
|
| | | | 754 | | | | | | — | | | | | | — | | |
| | | | | $ | 230,254,149 | | | | | $ | — | | | | | $ | — | | |
| Liabilities | | | | | | | | | | | | | | | | | | | |
|
Derivative warrant liabilities – Public Warrants
|
| | | $ | 11,212,500 | | | | | $ | — | | | | | $ | — | | |
|
Derivative warrant liabilities – Private Warrants
|
| | | $ | — | | | | | $ | — | | | | | $ | 7,578,670 | | |
| | |
As of September 30, 2021
|
| |
As of December 31, 2020
|
| ||||||
Stock Price
|
| | | $ | 9.94 | | | | | $ | 10.80 | | |
Volatility
|
| | | | 22.8% | | | | | | 24.0% | | |
Expected life of the options to convert
|
| | | | 5.13 | | | | | | 5.75 | | |
Risk-free rate
|
| | | | 1.00% | | | | | | 0.47% | | |
Dividend yield
|
| | | | 0.0% | | | | | | 0.0% | | |
|
Level 3 – Derivative warrant liabilities at December 31, 2020
|
| | | $ | 7,578,670 | | |
|
Change in fair value of derivative warrant liabilities
|
| | | | (2,426,670) | | |
|
Level 3 – Derivative warrant liabilities at March 31, 2021
|
| | | $ | 5,152,000 | | |
|
Change in fair value of derivative warrant liabilities
|
| | | | 1,306,670 | | |
|
Level 3 – Derivative warrant liabilities at June 30, 2021
|
| | | $ | 6,458,670 | | |
|
Change in fair value of derivative warrant liabilities
|
| | | $ | (448,000) | | |
|
Level 3 – Derivative warrant liabilities at September 30, 2021
|
| | | $ | 6,010,670 | | |
| | |
December 31, 2020
|
| |
December 31, 2019
|
| ||||||
|
(As Restated – See Note 2)
|
| | | | | | | |||||
Assets: | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash
|
| | | $ | 916,987 | | | | | $ | 25,000 | | |
Prepaid expenses
|
| | | | 152,474 | | | | | | — | | |
Total current assets
|
| | | | 1,069,461 | | | | | | 25,000 | | |
Cash and investments held in Trust Account
|
| | | | 230,254,149 | | | | | | — | | |
Deferred offering costs associated with initial public offering
|
| | | | — | | | | | | 25,000 | | |
Total assets
|
| | | $ | 231,323,610 | | | | | $ | 50,000 | | |
Liabilities, Class A Common Stock Subject to Possible Redemption
and Stockholders’ Equity (Deficit): |
| | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accrued expenses
|
| | | $ | 50,000 | | | | | $ | 26,500 | | |
Accrued expenses – related parties
|
| | | | 17,500 | | | | | | — | | |
Franchise tax payable
|
| | | | 200,050 | | | | | | 800 | | |
Total current liabilities
|
| | | | 267,550 | | | | | | 27,300 | | |
Deferred underwriting commissions
|
| | | | 6,300,000 | | | | | | — | | |
Derivative warrant liabilities
|
| | | | 18,791,170 | | | | | | — | | |
Total liabilities
|
| | | | 25,358,720 | | | | | | 27,300 | | |
Commitments and Contingencies | | | | | | | | | | | | | |
Class A common stock subject to possible redemption,
$0.0001 par value; 23,000,000 and -0- shares at $10.00 per share redemption value as of December 31, 2020 and December 31, 2019, respectively |
| | | | 230,000,000 | | | | | | — | | |
Stockholders’ Equity (Deficit): | | | | | | | | | | | | | |
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; no shares issued or outstanding
|
| | | | — | | | | | | — | | |
Class A common stock, $0.0001 par value; 100,000,000 shares authorized; no non-redeemable shares issued or outstanding
|
| | | | — | | | | | | — | | |
Class B common stock, $0.0001 par value; 10,000,000 shares authorized; 5,750,000 shares issued and outstanding as of December 31, 2020 and December 31, 2019(1)
|
| | | | 575 | | | | | | 575 | | |
Additional paid-in capital
|
| | | | — | | | | | | 24,425 | | |
Accumulated deficit
|
| | | | (24,035,685) | | | | | | (2,300) | | |
Total stockholders’ equity (deficit)
|
| | | | (24,035,110) | | | | | | 22,700 | | |
Total liabilities, Class A common stock subject to possible redemption and stockholders’ equity (deficit)
|
| | | $ | 231,323,610 | | | | | $ | 50,000 | | |
| | |
For the period from
Year ended December 31, 2020 |
| |
For the period from
November 1, 2019 (inception) through December 31, 2019 |
| ||||||
|
(As Restated – See Note 2)
|
| | | | | | | |||||
General and administrative expenses
|
| | | $ | 309,169 | | | | | $ | 1,500 | | |
General and administrative expenses – related party
|
| | | | 175,000 | | | | | | — | | |
Franchise tax expense
|
| | | | 199,700 | | | | | | 800 | | |
Loss from operations
|
| | | | (683,869) | | | | | | (2,300) | | |
Interest income from investments in Trust Account
|
| | | | 254,149 | | | | | | — | | |
Change in fair value of derivative warrant liabilities
|
| | | | (7,583,670) | | | | | | — | | |
Offering costs associated with derivative warrant liabilities
|
| | | | (315,080) | | | | | | — | | |
Income/(loss) before income tax expense
|
| | | | (8,328,470) | | | | | | (2,300) | | |
Income tax expense
|
| | | | 11,434 | | | | | | — | | |
Net loss
|
| | | $ | (8,339,904) | | | | | $ | (2,300) | | |
Weighted average shares outstanding of Class A common stock
|
| | | | 18,475,410 | | | | | | — | | |
Basic and diluted net loss per share, Class A
|
| | | $ | (0.35) | | | | | $ | — | | |
Weighted average shares outstanding of Class B common stock
|
| | | | 5,602,459 | | | | | | 5,000,000 | | |
Basic and diluted net loss per share, Class B
|
| | | $ | (0.35) | | | | | $ | (0.00) | | |
| | |
For the period from November 1, 2019 (inception) through December 31, 2019
|
| |||||||||||||||||||||||||||||||||||||||
|
Common Stock
|
| |
Additional
Paid-In Capital |
| |
Accumulated
Deficit |
| |
Total
Stockholders’ Equity |
| ||||||||||||||||||||||||||||||||
|
Class A
|
| |
Class B
|
| ||||||||||||||||||||||||||||||||||||||
|
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||
Balance – November 1, 2019 (inception)
|
| | | | — | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Issuance of Class B common stock to
Sponsor(1)(2) |
| | | | — | | | | | | — | | | | | | 5,750,000 | | | | | | 575 | | | | | | 24,425 | | | | | | — | | | | | | 25,000 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,300) | | | | | | (2,300) | | |
Balance – December 31, 2019
|
| | | | — | | | | | $ | — | | | | | | 5,750,000 | | | | | $ | 575 | | | | | $ | 24,425 | | | | | $ | (2,300) | | | | | $ | 22,700 | | |
| | |
For the Year Ended December 31, 2020 (As Restated – See Note 2)
|
| |||||||||||||||||||||||||||||||||||||||
|
Common Stock
|
| |
Additional
Paid-In Capital |
| |
Accumulated
Deficit |
| |
Total
Stockholders’ Equity (Deficit) |
| ||||||||||||||||||||||||||||||||
|
Class A
|
| |
Class B
|
| ||||||||||||||||||||||||||||||||||||||
|
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||
Balance – December 31, 2019
|
| | | | — | | | | | $ | — | | | | | | 5,750,000 | | | | | $ | 575 | | | | | $ | 24,425 | | | | | $ | (2,300) | | | | | $ | 22,700 | | |
Sale of private placement warrants to Sponsor in private placement, less allocation to derivative warrant liabilities
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,120,000 | | | | | | — | | | | | | 1,120,000 | | |
Accretion of Class A common stock to redemption amount (restated – See Note 2)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,144,425) | | | | | | (15,693,481) | | | | | | (16,837,906) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (8,339,904) | | | | | | (8,339,904) | | |
Balance – December 31,
2020 |
| | | | — | | | | | $ | — | | | | | | 5,750,000 | | | | | $ | 575 | | | | | $ | — | | | | | $ | (24,035,685) | | | | | $ | (24,035,110) | | |
| | |
For the Year Ended
December 31, 2020 |
| |
For the period from
November 1, 2019 (inception) through December 31, 2019 |
| ||||||
|
(As Restated – See Note 2)
|
| | | | | | | |||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | |
Net loss
|
| | | $ | (8,339,904) | | | | | $ | (2,300) | | |
Adjustments to reconcile net loss to net cash used in operating activities:
|
| | | | | | | | | | | | |
Interest earned on investments held in Trust Account
|
| | | | (254,149) | | | | | | — | | |
Offering costs associated with derivative warrant liabilities
|
| | | | 315,080 | | | | | | — | | |
Change in fair value of derivative warrant liabilities
|
| | | | 7,583,670 | | | | | | — | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | |
Prepaid expenses
|
| | | | (152,474) | | | | | | — | | |
Accrued expenses
|
| | | | 48,500 | | | | | | 1,500 | | |
Accrued expenses – related parties
|
| | | | 17,500 | | | | | | — | | |
Franchise tax payable
|
| | | | 199,250 | | | | | | 800 | | |
Net cash used in operating activities
|
| | | | (582,527) | | | | | | — | | |
Cash Flows from Investing Activities
|
| | | | | | | | | | | | |
Cash deposited in Trust Account
|
| | | | (230,000,000) | | | | | | — | | |
Net cash used in investing activities
|
| | | | (230,000,000) | | | | | | — | | |
Cash Flows from Financing Activities: | | | | | | | | | | | | | |
Proceeds from issuance of Class B common stock to Sponsor
|
| | | | — | | | | | | 25,000 | | |
Proceeds received from note payable to related party
|
| | | | 200,000 | | | | | | — | | |
Repayment of note payable to related party
|
| | | | (200,000) | | | | | | — | | |
Proceeds received from initial public offering, gross
|
| | | | 230,000,000 | | | | | | — | | |
Proceeds received from private placement
|
| | | | 5,600,000 | | | | | | — | | |
Offering costs paid
|
| | | | (4,125,486) | | | | | | — | | |
Net cash provided by financing activities
|
| | | | 231,474,514 | | | | | | 25,000 | | |
Net increase in cash
|
| | | | 891,987 | | | | | | 25,000 | | |
Cash – beginning of the period
|
| | |
|
25,000
|
| | | |
|
—
|
| |
Cash – end of the period
|
| | | $ | 916,987 | | | | | $ | 25,000 | | |
Supplemental disclosure of noncash activities: | | | | | | | | | | | | | |
Offering costs included in accrued expenses
|
| | | $ | — | | | | | $ | 25,000 | | |
Deferred underwriting commissions in connection with the initial public offering
|
| | | $ | 6,300,000 | | | | | $ | — | | |
As of March 13, 2020
|
| |
As Previously
Restated on 10-K/A Amendment No. 1 |
| |
Adjustment
|
| |
As Restated
|
| |||||||||
Total assets
|
| | | $ | 231,769,236 | | | | | $ | — | | | | | $ | 231,769,236 | | |
Total liabilities
|
| | | $ | 17,812,302 | | | | | $ | — | | | | | $ | 17,812,302 | | |
Class A common stock subject to possible redemption
|
| | | | 208,956,930 | | | | | | 21,043,070 | | | | | | 230,000,000 | | |
Preferred stock
|
| | | | — | | | | | | — | | | | | | — | | |
Class A common stock
|
| | | | 210 | | | | | | (210) | | | | | | — | | |
Class B common stock
|
| | | | 575 | | | | | | — | | | | | | 575 | | |
Additional paid-in capital
|
| | | | 5,356,051 | | | | | | (5,356,051) | | | | | | — | | |
Accumulated deficit
|
| | | | (356,832) | | | | | | (15,686,809) | | | | | | (16,043,641) | | |
Total stockholders’ equity (deficit)
|
| | | $ | 5,000,004 | | | | | $ | (21,043,070) | | | | | $ | (16,043,066) | | |
Total Liabilities, Class A Common Stock Subject to Possible Redemption and Stockholders’ Equity (Deficit)
|
| | | $ | 231,769,236 | | | | | $ | — | | | | | $ | 231,769,236 | | |
Shares of Class A common stock subject to possible redemption
|
| | | | 20,895,693 | | | | | | 2,104,307 | | | | | | 23,000,000 | | |
Shares of Class A common stock
|
| | | | 2,104,307 | | | | | | (2,104,307) | | | | | | — | | |
As of December 31, 2020
|
| |
As Previously
Restated on 10-K/A Amendment No. 1 |
| |
Adjustment
|
| |
As Restated
|
| |||||||||
Total assets
|
| | | $ | 231,323,610 | | | | | $ | — | | | | | $ | 231,323,610 | | |
Total liabilities
|
| | | $ | 25,358,720 | | | | | $ | — | | | | | $ | 25,358,720 | | |
Class A common stock subject to possible redemption
|
| | | | 200,964,880 | | | | | | 29,035,120 | | | | | | 230,000,000 | | |
Preferred stock
|
| | | | — | | | | | | — | | | | | | — | | |
Class A common stock
|
| | | | 290 | | | | | | (290) | | | | | | — | | |
Class B common stock
|
| | | | 575 | | | | | | — | | | | | | 575 | | |
Additional paid-in capital
|
| | | | 13,341,349 | | | | | | (13,341,349) | | | | | | — | | |
Accumulated deficit
|
| | | | (8,342,204) | | | | | | (15,693,481) | | | | | | (24,035,685) | | |
Total stockholders’ equity (deficit)
|
| | | $ | 5,000,010 | | | | | $ | (29,035,120) | | | | | $ | (24,035,110) | | |
Total Liabilities, Class A Common Stock Subject to Possible Redemption and Stockholders’ Equity (Deficit)
|
| | | $ | 231,323,610 | | | | | $ | — | | | | | $ | 231,323,610 | | |
Shares of Class A common stock subject to possible redemption
|
| | | | 20,096,488 | | | | | | 2,903,512 | | | | | | 23,000,000 | | |
Shares of Class A common stock
|
| | | | 2,903,512 | | | | | | (2,903,512) | | | | | | — | | |
| | |
For the Year Ended December 31, 2020
|
| |||||||||||||||
|
As Reported
|
| |
Adjustment
|
| |
As Restated
|
| |||||||||||
Supplemental Disclosure of Noncash Financing Activities: | | | | | | | | | | | | | | | | | | | |
Initial value of Class A common stock subject to possible redemption
|
| | | $ | 208,956,930 | | | | | $ | (208,956,930) | | | | | $ | — | | |
Change in value of Class A common stock subject to possible redemption
|
| | | $ | (7,992,050) | | | | | $ | 7,992,050 | | | | | $ | — | | |
For the year ended December 31, 2020
|
| |
Earnings (Loss) Per Share
|
| |||||||||||||||
|
As Previously
Restated |
| |
Adjustment
|
| |
Restated
|
| |||||||||||
Net loss
|
| | | $ | (8,339,904) | | | | | $ | — | | | | | $ | (8,339,904) | | |
Weighted average shares outstanding – Class A common stock
|
| | | | 23,000,000 | | | | | | (4,524,590) | | | | | | 18,475,410 | | |
Basic and diluted loss per share – Class A common stock
|
| | | $ | — | | | | | $ | (0.35) | | | | | $ | (0.35) | | |
Weighted average shares outstanding – Class B common stock
|
| | | | 5,602,459 | | | | | | — | | | | | | 5,602,459 | | |
Basic and diluted loss per share – Class B common stock
|
| | | $ | (1.49) | | | | | $ | 1.14 | | | | | $ | (0.35) | | |
|
Gross proceeds
|
| | | $ | 230,000,000 | | |
| Less: | | | | | | | |
|
Amount allocated to Public Warrants
|
| | | | (6,727,500) | | |
|
Class A common stock issuance costs
|
| | | | (10,110,406) | | |
| Plus: | | | | | | | |
|
Accretion of carrying value to redemption value
|
| | | | 16,837,906 | | |
|
Class A common stock subject to possible redemption
|
| | | $ | 230,000,000 | | |
| | |
For the Year Ended December 31,
|
| |||||||||||||||||||||
|
2020
|
| |
2019
|
| ||||||||||||||||||||
|
Class A
|
| |
Class B
|
| |
Class A
|
| |
Class B
|
| ||||||||||||||
Basic and diluted net income (loss) per share of common stock:
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Numerator: | | | | | | | | | | | | | | | | | | | | | | | | | |
Allocation of net income
|
| | | $ | (6,399,368) | | | | | $ | (1,940,536) | | | | | $ | — | | | | | $ | (2,300) | | |
Denominator: | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted weighted average common shares outstanding
|
| | | | 18,475,410 | | | | | | 5,602,459 | | | | | | — | | | | | | 5,000,000 | | |
Basic and diluted net income (loss) per share of common stock
|
| | | $ | (0.35) | | | | | $ | (0.35) | | | | | $ | — | | | | | $ | — | | |
Description
|
| |
Quoted Prices in
Active Markets (Level 1) |
| |
Significant Other
Observable Inputs (Level 2) |
| |
Significant Other
Unobservable Inputs (Level 3) |
| |||||||||
Assets
|
| | | | | | | | | | | | | | | | | | |
Assets held in Trust Account: | | | | | | | | | | | | | | | | | | | |
U.S. Treasury securities
|
| | | $ | 230,253,395 | | | | | $ | — | | | | | $ | — | | |
Cash equivalents – money market funds
|
| | | | 754 | | | | | | — | | | | | | — | | |
| | | | $ | 230,254,149 | | | | | $ | — | | | | | $ | — | | |
Liabilities
|
| | | | | | | | | | | | | | | | | | |
Derivative warrant liabilities – Public Warrants
|
| | | $ | 11,212,500 | | | | | $ | — | | | | | $ | — | | |
Derivative warrant liabilities – Private Warrants
|
| | | $ | — | | | | | $ | — | | | | | $ | 7,578,670 | | |
| | |
As of March 13, 2020
|
| |
As of December 31, 2020
|
| ||||||
Stock Price
|
| | | $ | 9.71 | | | | | $ | 10.80 | | |
Volatility
|
| | | | 18.2% | | | | | | 24.0% | | |
Expected life of the options to convert
|
| | | | 6.55 | | | | | | 5.75 | | |
Risk-free rate
|
| | | | 0.85% | | | | | | 0.47% | | |
Dividend yield
|
| | | | 0.0% | | | | | | 0.0% | | |
|
Level 3 derivative warrant liabilities as of January 1, 2020
|
| | | $ | — | | |
|
Issuance of Public and Private Warrants
|
| | | | 11,207,500 | | |
|
Transfer of Public Warrants to Level 1
|
| | | | (6,957,500) | | |
|
Change in fair value of derivative warrant liabilities
|
| | | | 3,328,670 | | |
|
Level 3 derivative warrant liabilities as of December 31, 2020
|
| | | $ | 7,578,670 | | |
As of March 31, 2020 (uaudited)
|
| |
As Previously
Restated on 10-K/A Amendment No. 1 |
| |
Adjustment
|
| |
As Restated
|
| |||||||||
Total assets
|
| | | $ | 231,843,054 | | | | | $ | — | | | | | $ | 231,843,054 | | |
Total liabilities
|
| | | $ | 18,315,099 | | | | | $ | — | | | | | $ | 18,315,099 | | |
Class A common stock subject to possible redemption
|
| | | | 208,527,950 | | | | | | 21,472,050 | | | | | | 230,000,000 | | |
Preferred stock
|
| | | | — | | | | | | — | | | | | | — | | |
Class A common stock
|
| | | | 215 | | | | | | (215) | | | | | | — | | |
Class B common stock
|
| | | | 575 | | | | | | — | | | | | | 575 | | |
Additional paid-in capital
|
| | | | 5,778,354 | | | | | | (5,778,354) | | | | | | — | | |
Accumulated deficit
|
| | | | (779,139) | | | | | | (15,693,481) | | | | | | (16,472,620) | | |
Total stockholders’ equity (deficit)
|
| | | $ | 5,000,005 | | | | | $ | (21,472,050) | | | | | $ | (16,472,045) | | |
Total Liabilities, Class A Common Stock Subject to Possible Redemption and Stockholders’ Equity (Deficit)
|
| | | $ | 231,843,054 | | | | | $ | — | | | | | $ | 231,843,054 | | |
Shares of Class A common stock subject to possible redemption
|
| | | | 20,852,795 | | | | | | 2,147,205 | | | | | | 23,000,000 | | |
Shares of Class A common stock
|
| | | | 2,147,205 | | | | | | (2,147,205) | | | | | | — | | |
| | |
For the Three Months Ended
March 31, 2020 (unaudited) |
| |||||||||||||||
|
As Reported
|
| |
Adjustment
|
| |
As Restated
|
| |||||||||||
Supplemental Disclosure of Noncash Financing Activities: | | | | | | | | | | | | | | | | | | | |
Initial value of Class A common stock subject to possible redemption
|
| | | $ | 208,956,930 | | | | | $ | (208,956,930) | | | | | $ | — | | |
Change in value of Class A common stock subject to possible redemption
|
| | | $ | (428,980) | | | | | $ | 428,980 | | | | | $ | — | | |
As of June 30, 2020 (unaudited)
|
| |
As Previously
Restated |
| |
Adjustment
|
| |
As Restated
|
| |||||||||
Total assets
|
| | | $ | 231,466,990 | | | | | $ | — | | | | | $ | 231,466,990 | | |
Total liabilities
|
| | | $ | 20,557,770 | | | | | $ | — | | | | | $ | 20,557,770 | | |
Class A common stock subject to possible redemption
|
| | | | 205,909,210 | | | | | | 24,090,790 | | | | | | 230,000,000 | | |
Preferred stock
|
| | | | — | | | | | | — | | | | | | — | | |
Class A common stock
|
| | | | 241 | | | | | | (241) | | | | | | — | | |
Class B common stock
|
| | | | 575 | | | | | | — | | | | | | 575 | | |
Additional paid-in capital
|
| | | | 8,397,068 | | | | | | (8,397,068) | | | | | | — | | |
Accumulated deficit
|
| | | | (3,397,874) | | | | | | (15,693,481) | | | | | | (19,091,355) | | |
Total stockholders’ equity (deficit)
|
| | | $ | 5,000,010 | | | | | $ | (24,090,790) | | | | | $ | (19,090,780) | | |
Total Liabilities, Class A Common Stock Subject to Possible
Redemption and Stockholders’ Equity (Deficit) |
| | | $ | 231,466,990 | | | | | $ | — | | | | | $ | 231,466,990 | | |
Shares of Class A common stock subject to possible redemption
|
| | | | 20,590,921 | | | | | | 2,409,079 | | | | | | 23,000,000 | | |
Shares of Class A common stock
|
| | | | 2,409,079 | | | | | | (2,409,079) | | | | | | — | | |
| | |
For the Six Months Ended
June 30, 2020 (unaudited) |
| |||||||||||||||
|
As Reported
|
| |
Adjustment
|
| |
As Restated
|
| |||||||||||
Supplemental Disclosure of Noncash Financing Activities: | | | | | | | | | | | | | | | | | | | |
Initial value of Class A common stock subject to possible redemption
|
| | | $ | 208,956,930 | | | | | $ | (208,956,930) | | | | | $ | — | | |
Change in value of Class A common stock subject to possible redemption
|
| | | $ | (3,047,720) | | | | | $ | 3,047,720 | | | | | $ | — | | |
As of September 30, 2020 (unaudited)
|
| |
As Previously
Restated |
| |
Adjustment
|
| |
As Restated
|
| |||||||||
Total assets
|
| | | $ | 231,395,659 | | | | | $ | — | | | | | $ | 231,395,659 | | |
Total liabilities
|
| | | $ | 22,903,099 | | | | | $ | — | | | | | $ | 22,903,099 | | |
Class A common stock subject to possible redemption
|
| | | | 203,492,550 | | | | | | 26,507,450 | | | | | | 230,000,000 | | |
Preferred stock
|
| | | | — | | | | | | — | | | | | | — | | |
Class A common stock
|
| | | | 265 | | | | | | (265) | | | | | | — | | |
Class B common stock
|
| | | | 575 | | | | | | — | | | | | | 575 | | |
Additional paid-in capital
|
| | | | 10,813,704 | | | | | | (10,813,704) | | | | | | — | | |
Accumulated deficit
|
| | | | (5,814,534) | | | | | | (15,693,481) | | | | | | (21,508,015) | | |
Total stockholders’ equity (deficit)
|
| | | $ | 5,000,010 | | | | | $ | (26,507,450) | | | | | $ | (21,507,440) | | |
Total Liabilities, Class A Common Stock Subject to Possible
Redemption and Stockholders’ Equity (Deficit) |
| | | $ | 231,395,659 | | | | | $ | — | | | | | $ | 231,395,659 | | |
Shares of Class A common stock subject to possible redemption
|
| | | | 20,349,255 | | | | | | 2,650,745 | | | | | | 23,000,000 | | |
Shares of Class A common stock
|
| | | | 2,650,745 | | | | | | (2,650,745) | | | | | | — | | |
| | |
For the Nine Months Ended
September 30, 2020 (unaudited) |
| |||||||||||||||
|
As Reported
|
| |
Adjustment
|
| |
As Restated
|
| |||||||||||
Supplemental Disclosure of Noncash Financing Activities: | | | | | | | | | | | | | | | | | | | |
Initial value of Class A common stock subject to possible redemption
|
| | | $ | 208,956,930 | | | | | $ | (208,956,930) | | | | | $ | — | | |
Change in value of Class A common stock subject to possible redemption
|
| | | $ | (5,464,380) | | | | | $ | 5,464,380 | | | | | $ | — | | |
| | |
Earnings (Loss) Per Share
As Previously |
| |||||||||||||||
|
As Reported
|
| |
Adjustment
|
| |
As Restated
|
| |||||||||||
For the three months ended March 31, 2020 (unaudited) | | | | | | | | | | | | | | | | | | | |
Net loss
|
| | | $ | (776,839) | | | | | $ | — | | | | | $ | (776,839) | | |
Weighted average shares outstanding – Class A common stock
|
| | | | 23,000,000 | | | | | | (18,197,802) | | | | | | 4,802,198 | | |
Basic and diluted earnings (loss) per share – Class A common stock
|
| | | $ | — | | | | | $ | (0.08) | | | | | $ | (0.08) | | |
Weighted average shares outstanding – Class B common stock
|
| | | | 5,156,593 | | | | | | — | | | | | | 5,156,593 | | |
Basic and diluted earnings (loss) per share – Class B common stock
|
| | | $ | (0.15) | | | | | $ | 0.07 | | | | | $ | (0.08) | | |
For the three months ended June 30, 2020 (unaudited)
|
| | | | | | | | | | | | | | | | | | |
Net loss
|
| | | $ | (2,618,735) | | | | | $ | — | | | | | $ | (2,618,735) | | |
Weighted average shares outstanding – Class A common stock
|
| | | | 23,000,000 | | | | | | — | | | | | | 23,000,000 | | |
Basic and diluted earnings (loss) per share – Class A common stock
|
| | | $ | — | | | | | $ | (0.09) | | | | | $ | (0.09) | | |
Weighted average shares outstanding – Class B common stock
|
| | | | 5,750,000 | | | | | | — | | | | | | 5,750,000 | | |
Basic and diluted earnings (loss) per share – Class B common stock
|
| | | $ | (0.46) | | | | | $ | 0.37 | | | | | $ | (0.09) | | |
For the six months ended June 30, 2020 (unaudited) | | | | | | | | | | | | | | | | | | | |
Net loss
|
| | | $ | (3,395,574) | | | | | $ | — | | | | | $ | (3,395,574) | | |
Weighted average shares outstanding – Class A common stock
|
| | | | 23,000,000 | | | | | | (9,098,901) | | | | | | 13,901,099 | | |
Basic and diluted earnings (loss) per share – Class A common stock
|
| | | $ | — | | | | | $ | (0.18) | | | | | $ | (0.18) | | |
Weighted average shares outstanding – Class B common stock
|
| | | | 5,453,297 | | | | | | — | | | | | | 5,453,297 | | |
Basic and diluted earnings (loss) per share – Class B common stock
|
| | | $ | (0.62) | | | | | $ | 0.44 | | | | | $ | (0.18) | | |
For the three months ended September 30, 2020 (unaudited) | | | | | | | | | | | | | | | | | | | |
Net loss
|
| | | $ | (2,416,660) | | | | | $ | — | | | | | $ | (2,416,660) | | |
Weighted average shares outstanding – Class A common stock
|
| | | | 23,000,000 | | | | | | — | | | | | | 23,000,000 | | |
Basic and diluted earnings (loss) per share – Class A common stock
|
| | | $ | — | | | | | $ | (0.08) | | | | | $ | (0.08) | | |
| | |
Earnings (Loss) Per Share
As Previously |
| |||||||||||||||
|
As Reported
|
| |
Adjustment
|
| |
As Restated
|
| |||||||||||
Weighted average shares outstanding – Class B common stock
|
| | | | 5,750,000 | | | | | | — | | | | | | 5,750,000 | | |
Basic and diluted earnings (loss) per share – Class B common stock
|
| | | $ | (0.42) | | | | | $ | 0.34 | | | | | $ | (0.08) | | |
For the nine months ended September 30, 2020 (unaudited) | | | | | | | | | | | | | | | | | | | |
Net loss
|
| | | $ | (5,812,234) | | | | | $ | — | | | | | $ | (5,812,234) | | |
Weighted average shares outstanding – Class A common stock
|
| | | | 23,000,000 | | | | | | (6,043,796) | | | | | | 16,956,204 | | |
Basic and diluted earnings (loss) per share – Class A common stock
|
| | | $ | — | | | | | $ | (0.26) | | | | | $ | (0.26) | | |
Weighted average shares outstanding – Class B common stock
|
| | | | 5,552,920 | | | | | | — | | | | | | 5,552,920 | | |
Basic and diluted earnings (loss) per share – Class B common stock
|
| | | $ | (1.05) | | | | | $ | 0.79 | | | | | $ | (0.26) | | |
| | |
December 31, 2020
|
| |
December 31, 2019
|
| ||||||
Current | | | | | | | | | | | | | |
Federal
|
| | | $ | 11,434 | | | | | $ | — | | |
State
|
| | | | — | | | | | | — | | |
Deferred | | | | | | | | | | | | | |
Federal
|
| | | | (101,676) | | | | | | (483) | | |
State
|
| | | | — | | | | | | — | | |
Valuation allowance
|
| | | | 101,676 | | | | | | 483 | | |
Income tax provision
|
| | | | 11,434 | | | | | | — | | |
| | |
December 31, 2020
|
| |
December 31, 2019
|
| ||||||
Deferred tax assets: | | | | | | | | | | | | | |
Start-up/Organization costs
|
| | | $ | 101,676 | | | | | $ | 315 | | |
Net operating loss carryforwards
|
| | | | — | | | | | | 168 | | |
Total deferred tax assets
|
| | | | 101,676 | | | | | | 483 | | |
Valuation allowance
|
| | | | (101,676) | | | | | | (483) | | |
Deferred tax asset, net of allowance
|
| | | $ | — | | | | | $ | — | | |
| | |
December 31, 2020
|
| |
December 31, 2019
|
| ||||||
Statutory federal income tax
|
| | | $ | (1,748,979) | | | | | $ | (483) | | |
Change in fair value of derivative warrant liabilities
|
| | | | (1,450,150) | | | | | | — | | |
Financing costs – derivative warrant liabilities
|
| | | | (2,503) | | | | | | — | | |
Change in valuation allowance
|
| | | | 3,213,066 | | | | | | 483 | | |
Income tax expense
|
| | | $ | 11,434 | | | | | $ | — | | |
| | |
Amount
|
| |||
Securities and Exchange Commission registration fee
|
| | | | 64,680 | | |
FINRA filing fee
|
| | | | * | | |
Accountants’ fees and expenses
|
| | | | * | | |
Legal fees and expenses
|
| | | | * | | |
Blue Sky fees and expenses
|
| | | | * | | |
Transfer Agent’s fees and expenses
|
| | | | * | | |
Printing and engraving expenses
|
| | | | * | | |
Miscellaneous
|
| | | | * | | |
Total expenses
|
| | | | 64,680 | | |
| | | | | | | | | | |
Incorporated by Reference
|
| |
Filed or
Furnished Herewith |
| | | | | | | | | | | | | |||||||||||||
Exhibit
Number |
| |
Description
|
| |
Form
|
| |
File Number
|
| |
Exhibit
|
| |
Filing Date
|
| | | | | ||||||||||||||||||||
| | | 2 | .1 | | | | | |
S-4/A
|
| | 333-258152 | | | | | 2 | .1 | | | |
October 20, 2021
|
| | | | | | | | |||||||||
| | | 3 | .1 | | | | | |
8-K
|
| | 001-39248 | | | | | 3 | .1 | | | |
November 18, 2021
|
| | | | | | | | |||||||||
| | | 3 | .2 | | | | | |
8-K
|
| | 001-39248 | | | | | 3 | .2 | | | |
November 18, 2021
|
| | | | | | | | |||||||||
| | | 3 | .3 | | | | | |
8-K/A
|
| | 001-39248 | | | | | 3 | .3 | | | |
November 22, 2021
|
| | | | | | | | |||||||||
| | | 4 | .1 | | | | | |
8-K
|
| | 001-39248 | | | | | 4 | .1 | | | |
March 13, 2020
|
| | | | | | | | |||||||||
| | | 4 | .2 | | | | | |
8-K/A
|
| | 001-39248 | | | | | 4 | .2 | | | |
November 22, 2021
|
| | | | | | | | |||||||||
| | | 5 | .1 | | | |
Opinion of Latham & Watkins LLP
as to the validity of the shares of The Oncology Institute Common Stock and Warrants |
| | | | | | | | | | | | | | | | | |
X
|
| | | | | ||||||||
| | | 10 | .1 | | | | | |
S-4/A
|
| | 333-258152 | | | | | 10 | .1 | | | |
October 20, 2021
|
| | | | | | | | |||||||||
| | | 10 | .2 | | | | | |
S-4/A
|
| | 333-258152 | | | | | 10 | .2 | | | |
October 20, 2021
|
| | | | | | | | |||||||||
| | | 10 | .3 | | | | | |
8-K/A
|
| | 001-39248 | | | | | 10 | .1 | | | |
November 22, 2021
|
| | | | | | | | |||||||||
| | | 10 | .4 | | | | | |
8-K/A
|
| | 001-39248 | | | | | 10 | .2 | | | |
November 22, 2021
|
| | | | | | | | |||||||||
| | | 10 | .5 | | | | | |
8-K/A
|
| | 001-39248 | | | | | 10 | .3 | | | |
November 22, 2021
|
| | | | | | | | |||||||||
| | | 10 | .6 | | | | | |
8-K/A
|
| | 001-39248 | | | | | 10 | .5 | | | |
November 22, 2021
|
| | | | | | | | |||||||||
| | | 10 | .7 | | | | | |
8-K/A
|
| | 001-39248 | | | | | 10 | .6 | | | |
November 22, 2021
|
| | | | | | | |
| | | | | | | | | | |
Incorporated by Reference
|
| |
Filed or
Furnished Herewith |
| | | | | | | | | | | | | |||||||||||||
Exhibit
Number |
| |
Description
|
| |
Form
|
| |
File Number
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Exhibit
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Filing Date
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| | | 10 | .8 | | | | | |
8-K/A
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| | 001-39248 | | | | | 10 | .7 | | | |
November 22, 2021
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| | | | | | | | |||||||||
| | | 21 | .1 | | | | | |
S-1
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333-261740
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| | | | 21 | .1 | | | |
December 17, 2021
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| | | | | | | | |||||||||
| | | 23 | .1 | | | |
Consent of WithumSmith+Brown,
P.C. (with respect to DFP Healthcare Corp. consolidated financial statements) |
| | | | | | | | | | | | | | |
February 8, 2022
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X
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| | | 23 | .2 | | | | | | | | | | | | | | | | | | |
February 8, 2022
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X
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| | | 23 | .3 | | | | | | | | | | | | | | | | | | | | | |
X
|
| | | | | |||||||||
| | | 24 | .1 | | | | | |
S-1
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333-261740
|
| | | | 24 | .1 | | | |
December 17, 2021
|
| | | | | | | | |||||||||
| | | 101 | .INS | | | | XBRL Instance Document | | | | | | | | | | | ||||||||||||||||||||||
| | | 101 | .SCH | | | |
XBRL Taxonomy Extension Schema
Document |
| | | | | | | | | | ||||||||||||||||||||||
| | | 101 | .CAL | | | | XBRL Taxonomy Extension Calculation Linkbase Document | | | | | | | | | | | ||||||||||||||||||||||
| | | 101 | .DEF | | | | XBRL Taxonomy Extension Definition Linkbase Document | | | | | | | | | | | ||||||||||||||||||||||
| | | 101 | .LAB | | | | XBRL Taxonomy Extension Label Linkbase Document | | | | | | | | | | | ||||||||||||||||||||||
| | | 107 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Signature
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| |
Title
|
| |
Date
|
|
|
/s/ Brad Hively
Brad Hively
|
| |
Chief Executive Officer and Director
(principal executive officer) |
| |
February 8, 2022
|
|
|
/s/ Scott Dalgleish
Scott Dalgleish
|
| |
Chief Financial Officer
(principal financial and accounting officer) |
| |
February 8, 2022
|
|
|
*
Richard Barasch
|
| | Director | | |
February 8, 2022
|
|
|
*
Karen Johnson
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| | Director | | |
February 8, 2022
|
|
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*
Mohit Kaushal
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| | Director | | |
February 8, 2022
|
|
|
*
Anne McGeorge
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| | Director | | |
February 8, 2022
|
|
|
*
Maeve O’Meara
|
| | Director | | |
February 8, 2022
|
|
|
*
Ravi Sarin
|
| | Director | | |
February 8, 2022
|
|
Exhibit 5.1
10250 Constellation Blvd., Suite 1100 | ||
Los Angeles, California 90067 | ||
Tel: +1.424.653.5500 Fax: +1.424.653.5501 | ||
www.lw.com | ||
|
FIRM / AFFILIATE OFFICES | |
Beijing | Moscow | |
Boston | Munich | |
Brussels | New York | |
Century City | Orange County | |
Chicago | Paris | |
Dubai | Riyadh | |
Düsseldorf | San Diego | |
February 8, 2021 | Frankfurt | San Francisco |
Hamburg | Seoul | |
The Oncology Institute, Inc. | Hong Kong | Shanghai |
18000 Studebaker Rd. | Houston | Silicon Valley |
Cerritos, California 90703 | London | Singapore |
Los Angeles | Tokyo | |
Madrid | Washington, D.C. | |
Milan |
Re: The Oncology Institute, Inc. – Registration Statement on Form S-1
To the addressees set forth above:
We have acted as special counsel to The Oncology Institute, Inc., a Delaware corporation (the “Company”), in connection with its filing on the date hereof with the Securities and Exchange Commission (the “Commission”) of a registration statement on Form S-1 (as amended, the “Registration Statement”) under the Securities Act of 1933, as amended (the “Act”), relating to the registration of (i) the offer and sale from time to time of (a) (1) 61,706,011 outstanding shares (the “Outstanding Resale Shares”) of common stock, par value $0.0001 per share (the “Common Stock”), of the Company, (2) 9,372,540 shares of Common Stock to be issued pursuant to the earnout provisions of the Merger Agreement (as defined below) (the “Earnout Resale Shares”), (3) 16,351,042 shares of Common Stock issuable upon the conversion of the outstanding shares of Class A Common Equivalent Preferred Stock (the “Conversion Resale Shares”) and (4) 3,580,063 shares of Common Stock issuable upon the exercise of options to purchase shares of Common Stock held by certain directors and officers of the Company (the “Option Resale Shares” and, together with the Outstanding Resale Shares, the Earnout Resale Shares, the Conversion Resale Shares and the Option Resale Shares, the “Resale Shares”) and (b) 3,177,543 warrants (the “Resale Warrants”) to acquire shares of Common Stock (the “Warrants”), in each case, by the selling securityholders named in the Registration Statement (the “Selling Securityholders”), and (ii) the issuance by the Company of up to 8,927,543 shares (the “Warrant Shares”) of Common Stock upon the exercise of Warrants. This opinion is being furnished in connection with the requirements of Item 601(b)(5) of Regulation S-K under the Act, and no opinion is expressed herein as to any matter pertaining to the contents of the Registration Statement or related prospectus or prospectus supplement (collectively, the “Prospectus”) other than as expressly stated herein with respect to the issue of Resale Shares, the Warrant Shares and the Resale Warrants.
As such counsel, we have examined such matters of fact and questions of law as we have considered appropriate for purposes of this letter. With your consent, we have relied upon certificates and other assurances of officers of the Company and others as to factual matters without having independently verified such factual matters. We are opining herein as to the General Corporation Law of the State of Delaware (the “DGCL”) and, with respect to the opinions set forth in paragraph 2 below, the internal laws of the State of New York, and we express no opinion with respect to the applicability thereto, or the effect thereon, of the laws of any other jurisdiction or, in the case of Delaware, any other laws, or as to any matters of municipal law or the laws of any local agencies within any state.
Subject to the foregoing and the other matters set forth herein, it is our opinion that, as of the date hereof:
1. | The Outstanding Resale Shares have been duly authorized by all necessary corporate action of the Company and are validly issued, fully paid and nonassessable. |
2. | The Earnout Resale Shares, when issued in accordance with the terms of the Agreement and Plan of Merger, dated as of June 28, 2021, by and among DFP Healthcare Acquisitions Corp., Orion Merger Sub I, Inc., Orion Merger Sub II, LLC and TOI Parent Inc. (the “Merger Agreement”), will be validly issued, fully paid and nonassessable. |
February 8, 2022 Page 2 |
3. | The Conversion Resale Shares, when issued in accordance with provisions of the Third Amended and Restated Certificate of Incorporation of the Company (the “Charter”), will be validly issued, fully paid and nonassessable. |
4. | The Option Resale Shares, when issued and paid for in accordance with the Company’s 2021 Incentive Award Plan will be validly issued, fully paid and nonassessable. |
5. | The Resale Warrants are the legally valid and binding obligations of the Company, enforceable against the Company in accordance with their terms. |
6. | When the Warrant Shares shall have been duly registered on the books of the transfer agent and registrar therefor in the name of or on behalf of the Warrant holders and have been issued by the Company against payment therefor (not less than par value) in the circumstances contemplated by the Warrants, the Warrant Shares will have been duly authorized by all necessary corporate action of the Company and will be validly issued, fully paid and nonassessable. In rendering the foregoing opinion, we have assumed that the Company will comply with all applicable notice requirements regarding uncertificated shares provided in the DGCL |
Our opinions set forth in numbered paragraph 5 are subject to: (i) the effect of bankruptcy, insolvency, reorganization, preference, fraudulent transfer, moratorium or other similar laws relating to or affecting the rights and remedies of creditors; (ii) the effect of general principles of equity, whether considered in a proceeding in equity or at law (including the possible unavailability of specific performance or injunctive relief), concepts of materiality, reasonableness, good faith and fair dealing, and the discretion of the court before which a proceeding is brought; (iii) the invalidity under certain circumstances under law or court decisions of provisions providing for the indemnification of or contribution to a party with respect to a liability where such indemnification or contribution is contrary to public policy; and (iv) we express no opinion as to (a) any provision for liquidated damages, default interest, late charges, monetary penalties, make-whole premiums or other economic remedies to the extent such provisions are deemed to constitute a penalty, (b) consents to, or restrictions upon, governing law, jurisdiction, venue, arbitration, remedies, or judicial relief, (c) waivers of rights or defenses, (d) any provision requiring the payment of attorneys’ fees, where such payment is contrary to law or public policy, (e) the creation, validity, attachment, perfection, or priority of any lien or security interest, (f) advance waivers of claims, defenses, rights granted by law, or notice, opportunity for hearing, evidentiary requirements, statutes of limitation, trial by jury or at law, or other procedural rights, (g) waivers of broadly or vaguely stated rights, (h) provisions for exclusivity, election or cumulation of rights or remedies, (i) provisions authorizing or validating conclusive or discretionary determinations, (j) grants of setoff rights, (k) proxies, powers and trusts, (l) provisions prohibiting, restricting, or requiring consent to assignment or transfer of any right or property, and (m) the severability, if invalid, of provisions to the foregoing effect.
With your consent, we have assumed (a) that the Warrants and the Warrant Agreement have been duly authorized, executed and delivered by the parties thereto other than the Company, (b) that such securities constitute or will constitute legally valid and binding obligations of the parties thereto other than the Company, enforceable against each of them in accordance with their respective terms and (c) that the status of the Warrants as legally valid and binding obligations of the parties will not be affected by any (i) breaches of, or defaults under, agreements or instruments, (ii) violations of statutes, rules, regulations or court or governmental orders or (iii) failures to obtain required consents, approvals or authorizations from, or to make required registrations, declarations or filings with, governmental authorities.
This opinion is for your benefit in connection with the Registration Statement and may be relied upon by you and by persons entitled to rely upon it pursuant to the applicable provisions of the Act. We consent to your filing this opinion as an exhibit to the Registration Statement and to the reference to our firm contained in the Prospectus under the heading “Legal Matters.” In giving such consent, we do not thereby admit that we are in the category of persons whose consent is required under Section 7 of the Act or the rules and regulations of the Commission thereunder.
February 8, 2022 Page 3 |
Sincerely, | |
/s/ Latham & Watkins LLP |
Exhibit 23.1
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We hereby consent to the use in the Prospectus constituting a part of this Registration Statement on Amendment No. 1 to Form S-1 of our report dated May 21, 2021, except for the effects of the restatement and subsequent event disclosed in Note 2 and 12, respectively, as to which the date is December 13, 2021, relating to the financial statements of The Oncology Institute, Inc. (formerly known as DFP Healthcare Acquisitions Corp), which is contained in that Prospectus. We also consent to the reference to our Firm under the caption “Experts” in the Prospectus.
/s/ WithumSmith+Brown, PC | |
New York, New York | |
February 8, 2022 |
Exhibit 23.2
Consent of Independent Registered Public Accounting Firm
TOI Parent, Inc.
Cerritos, California
We hereby consent to the use in the Prospectus constituting a part of this Registration Statement of our report dated June 27, 2021, relating to the consolidated financial statements of TOI Parent, Inc., which is contained in that Prospectus.
We also consent to the reference to us under the caption “Experts” in the Prospectus.
/s/ BDO USA, LLP | |
Costa Mesa, California | |
| |
February 8, 2022 | |
Exhibit 107
EX-FILING FEES
Calculation of Filing Fee Tables
S-1
(Form Type)
The Oncology Institute, Inc.
(Exact Name of Registrant as Specified in its Charter)
Table 1: Newly Registered Securities*
Security Type | Security Class Title |
Fee Calculation
Rule |
Amount
Registered(1) |
Proposed
Maximum Offering Price Per Unit(5) |
Maximum
Aggregate Offering Price |
Fee Rate |
Amount of
Registration Fee |
|||||||||||||||||
Primary Offering | ||||||||||||||||||||||||
Equity | Common stock, par value $0.0001 per share (“Common Stock”), | Rule 457(g) | 8,927,543 | (2) | $ | 11.50 | (3) | $ | 102,666,745 | 0.0000927 | $ | 9,518 | ||||||||||||
Secondary Offering | ||||||||||||||||||||||||
Equity | Common Stock | Rule 457(c) | 91,009,656 | (4) | $ | 6.73 | (5) | $ | 612,039,937 | 0.0000927 | $ | 56,737 | ||||||||||||
Warrants |
Warrants to Purchase
Common Stock |
Rule 457(g) | 3,177,543 | (6) | $ | — | $ | — | 0.0000927 | $ | — | (7) | ||||||||||||
Total Offering Amounts | $ | 714,706,681 | $ | 66,255 | ||||||||||||||||||||
Fees Previously Paid | $ | 69,217 | ||||||||||||||||||||||
Total Fee Offsets | $ | — | ||||||||||||||||||||||
Net Fee Due | $ | — |
* | Capitalized terms used herein and not otherwise defined herein have the meanings assigned to them in the Company’s Registration Statement on Form S-1 to which this exhibit relates. |
(1) | Pursuant to Rule 416 under the Securities Act, this registration statement also covers any additional number of shares of common stock (“Common Stock”), par value $0.0001 per share, of The Oncology Institute, Inc. (the “Company”) issuable upon stock splits, stock dividends or other distributions, recapitalization or similar events with respect to the shares of Common Stock being registered pursuant to this registration statement. |
(2) | Consists of (a) 5,750,000 shares of Common Stock issuable upon the exercise of Public Warrants and (b) 3,177,543 shares of Common Stock issuable upon the exercise of Private Placement Warrants. |
(3) | The price per share is based upon the exercise price per the Warrant of $11.50 per share. |
(4) | Represents the resale of (a) 43,178,072 shares of Common Stock issued to certain former stockholders of TOI Parent, Inc. in connection with the Business Combination, (b) 17,500,000 shares of Common Stock by certain of the Selling Securityholders in connection with the PIPE Investment, (c) 16,351,042 shares of Common Stock issuable upon conversion of any Series A Common Equivalent Preferred Stock (including 10,000,000 shares of Common Stock underlying shares of Series A Common Equivalent Preferred Stock issued in the PIPE Investment), (d) 9,372,540 Earnout Shares issuable to certain former stockholders of TOI Parent, Inc. pursuant to the Merger Agreement, (e) 3,580,063 shares of Common Stock underlying options held by certain directors and officers of the Company, (f) 696,000 Earnout Shares issued to certain directors and officers of the Company and (g) 331,939 shares of Common Stock issued to former directors and officers of the Company prior to the Business Combination. |
(5) | Pursuant to Rule 457(c) under the Securities Act, and solely for the purpose of calculating the registration fee, the proposed maximum offering price per share is $6.73, which is the average of the high and low prices of the Common Stock on Nasdaq on February 4, 2022. |
(6) | Represents the resale of 3,177,543 Private Placement Warrants held by the Initial Stockholders. |
(7) | In accordance with Rule 257(g), the entire registration fee for the warrants is allocated to the shares of Common Stock underlying the warrants, and no separate fee is payable for the warrants. |
Table 2: Fee Offset Claims and Sources
N/A