CareCloud (CCLD) 10-Q 5 Aug 21 2021 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2021	Jul. 29, 2021
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2021
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2021
Current Fiscal Year End Date	--12-31
Entity File Number	001-36529
Entity Registrant Name	CareCloud, Inc.
Entity Central Index Key	0001582982
Entity Tax Identification Number	22-3832302
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	7 Clyde Road
Entity Address, City or Town	Somerset
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	08873
City Area Code	(732)
Local Phone Number	873-5133
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		14,613,710
Common Stock [Member]
Document Information [Line Items]
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	MTBC
Security Exchange Name	NASDAQ
11% Series A Cumulative Redeemable Perpetual Preferred Stock [Member]
Document Information [Line Items]
Title of 12(b) Security	11% Series A Cumulative Redeemable Perpetual Preferred Stock, par value $0.001 per share
Trading Symbol	MTBCP
Security Exchange Name	NASDAQ

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
CURRENT ASSETS:
Cash		$ 20,925
Restricted cash
Accounts receivable - net, of allowance for doubtful accounts of $430 and $522 at June 30, 2021 and December 31, 2020, respectively		12,089
Contract asset		4,105
Inventory		399
Current assets - related party		13
Prepaid expenses and other current assets		7,288
Total current assets		44,819
Property and equipment - net		4,921
Operating lease right-of-use assets	$ 7,712	7,743
Intangible assets - net		29,978
Goodwill		49,291
Other assets		1,247
TOTAL ASSETS		137,999
CURRENT LIABILITIES:
Accounts payable		6,461
Accrued compensation		2,590
Accrued expenses		8,501
Operating lease liability (current portion)	4,098	4,729
Deferred revenue (current portion)		1,173
Accrued liability to related party		1
Deferred payroll taxes		927
Notes payable (current portion)		401
Dividend payable		4,241
Consideration payable
Total current liabilities		29,024
Notes payable		41
Contingent consideration	6,500
Borrowings under line of credit
Deferred payroll taxes		927
Operating lease liability	5,727	6,297
Deferred revenue		305
Deferred tax liability		160
Total liabilities		36,754
COMMITMENTS AND CONTINGENCIES (NOTE 8)
SHAREHOLDERS’ EQUITY:
Preferred stock, $0.001 par value - authorized 7,000,000 shares at June 30, 2021 and December 31, 2020; issued and outstanding 5,291,383 and 5,475,279 shares at June 30, 2021 and December 31, 2020, respectively		5
Common stock, $0.001 par value - authorized 29,000,000 shares at June 30, 2021 and December 31, 2020; issued 15,352,405 and 14,121,044 shares at June 30, 2021 and December 31, 2020, respectively; 14,611,606 and 13,380,245 shares outstanding at June 30, 2021 and December 31, 2020, respectively		14
Additional paid-in capital		136,781
Accumulated deficit		(33,889)
Accumulated other comprehensive loss		(1,004)
Less: 740,799 common shares held in treasury, at cost at June 30, 2021 and December 31, 2020		(662)
Total shareholders’ equity	97,765	101,245
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$ 137,999
Unaudited
CURRENT ASSETS:
Cash	8,002
Restricted cash	1,500
Accounts receivable - net, of allowance for doubtful accounts of $430 and $522 at June 30, 2021 and December 31, 2020, respectively	16,224
Contract asset	5,470
Inventory	441
Current assets - related party	13
Prepaid expenses and other current assets	3,279
Total current assets	34,929
Property and equipment - net	5,544
Operating lease right-of-use assets	7,712
Intangible assets - net	33,267
Goodwill	60,661
Other assets	1,245
TOTAL ASSETS	143,358
CURRENT LIABILITIES:
Accounts payable	4,758
Accrued compensation	3,577
Accrued expenses	6,993
Operating lease liability (current portion)	4,098
Deferred revenue (current portion)	1,181
Accrued liability to related party	1
Deferred payroll taxes	927
Notes payable (current portion)	22
Dividend payable	3,810
Consideration payable	1,571
Total current liabilities	26,938
Notes payable	31
Contingent consideration	6,500
Borrowings under line of credit	5,000
Deferred payroll taxes	927
Operating lease liability	5,727
Deferred revenue	184
Deferred tax liability	286
Total liabilities	45,593
COMMITMENTS AND CONTINGENCIES (NOTE 8)
SHAREHOLDERS’ EQUITY:
Preferred stock, $0.001 par value - authorized 7,000,000 shares at June 30, 2021 and December 31, 2020; issued and outstanding 5,291,383 and 5,475,279 shares at June 30, 2021 and December 31, 2020, respectively	5
Common stock, $0.001 par value - authorized 29,000,000 shares at June 30, 2021 and December 31, 2020; issued 15,352,405 and 14,121,044 shares at June 30, 2021 and December 31, 2020, respectively; 14,611,606 and 13,380,245 shares outstanding at June 30, 2021 and December 31, 2020, respectively	15
Additional paid-in capital	135,551
Accumulated deficit	(36,080)
Accumulated other comprehensive loss	(1,064)
Less: 740,799 common shares held in treasury, at cost at June 30, 2021 and December 31, 2020	(662)
Total shareholders’ equity	97,765
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$ 143,358

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Allowance for doubtful accounts receivable		$ 522
Preferred stock, par value		$ 0.001
Preferred stock, shares authorized		7,000,000
Preferred stock, shares issued		5,475,279
Preferred stock, shares outstanding		5,475,279
Common stock, par value		$ 0.001
Common stock, shares authorized		29,000,000
Common stock, shares issued		14,121,044
Common stock, shares outstanding		13,380,245
Treasury stock, shares		740,799
Unaudited
Allowance for doubtful accounts receivable	$ 430
Preferred stock, par value	$ 0.001
Preferred stock, shares authorized	7,000,000
Preferred stock, shares issued	5,291,383
Preferred stock, shares outstanding	5,291,383
Common stock, par value	$ 0.001
Common stock, shares authorized	29,000,000
Common stock, shares issued	15,352,405
Common stock, shares outstanding	14,611,606
Treasury stock, shares	740,799

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Statement [Abstract]
NET REVENUE	$ 34,065,000	$ 19,579,000	$ 63,834,000	$ 41,446,000
OPERATING EXPENSES:
Direct operating costs	20,534,000	12,557,000	38,595,000	26,123,000
Selling and marketing	2,204,000	1,625,000	4,094,000	3,206,000
General and administrative	6,269,000	5,393,000	11,893,000	10,986,000
Research and development	1,813,000	2,146,000	3,839,000	4,479,000
Depreciation and amortization	3,128,000	2,405,000	5,959,000	3,738,000
Impairment and unoccupied lease charges	223,000	63,000	1,241,000	361,000
Total operating expenses	34,171,000	24,189,000	65,621,000	48,893,000
OPERATING LOSS	(106,000)	(4,610,000)	(1,787,000)	(7,447,000)
OTHER:
Interest income	2,000	4,000	6,000	42,000
Interest expense	(115,000)	(146,000)	(183,000)	(264,000)
Other income (expense) - net	205,000	(114,000)	(15,000)	331,000
LOSS BEFORE PROVISION (BENEFIT) FOR INCOME TAXES	(14,000)	(4,866,000)	(1,979,000)	(7,338,000)
Income tax provision (benefit)	213,000	(74,000)	212,000	(44,000)
NET LOSS	(227,000)	(4,792,000)	(2,191,000)	(7,294,000)
Preferred stock dividend	3,638,000	3,277,000	6,767,000	5,920,000
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS	$ (3,865,000)	$ (8,069,000)	$ (8,958,000)	$ (13,214,000)
Net loss per common share: basic and diluted	$ (0.27)	$ (0.65)	$ (0.63)	$ (1.07)
Weighted-average common shares used to compute basic and diluted loss per share	14,430,882	12,395,197	14,258,772	12,353,007

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Statement [Abstract]
NET LOSS		$ (227)	$ (4,792)	$ (2,191)	$ (7,294)
OTHER COMPREHENSIVE (LOSS) INCOME, NET OF TAX
Foreign currency translation adjustment (a)	[1]	(405)	16	(60)	(574)
COMPREHENSIVE LOSS		$ (632)	$ (4,776)	$ (2,251)	$ (7,868)
[1]	No tax effect has been recorded as the Company recorded a valuation allowance against the tax benefit from its foreign currency translation adjustments.

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands		Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Treasury Stock [Member]	Total
Balance at Dec. 31, 2019		$ 2	$ 13	$ 69,403	$ (25,075)	$ (843)	$ (662)	$ 42,838
Balance, shares at Dec. 31, 2019		2,539,325	12,978,485
Net loss					(2,502)			(2,502)
Foreign currency translation adjustment						(590)		(590)
Issuance of stock under the equity incentive plan
Issuance of stock under the equity incentive plan, shares		28,870	129,607
Issuance of preferred stock in connection with the Meridian acquisition		$ 1		18,999				19,000
Issuance of preferred stock in connection with an acquisition, shares		760,000
Issuance of warrants in connection with the Meridian acquisition				300				300
Stock-based compensation, net of cash settlements				794				794
Preferred stock dividends				(2,643)				(2,643)
Balance at Mar. 31, 2020		$ 3	$ 13	86,853	(27,577)	(1,433)	(662)	57,197
Balance, shares at Mar. 31, 2020		3,328,195	13,108,092
Balance at Dec. 31, 2019		$ 2	$ 13	69,403	(25,075)	(843)	(662)	42,838
Balance, shares at Dec. 31, 2019		2,539,325	12,978,485
Net loss								(7,294)
Foreign currency translation adjustment	[1]							(574)
Preferred stock dividends								(5,920)
Balance at Jun. 30, 2020		$ 4	$ 13	113,798	(32,369)	(1,417)	(662)	(79,367)
Balance, shares at Jun. 30, 2020		4,360,998	13,195,490
Balance at Mar. 31, 2020		$ 3	$ 13	86,853	(27,577)	(1,433)	(662)	57,197
Balance, shares at Mar. 31, 2020		3,328,195	13,108,092
Net loss					(4,792)			(4,792)
Foreign currency translation adjustment						16		16	[1]
Issuance of stock under the Amended and Restated Equity Incentive Plan
Issuance of stock under the Amended and Restated Equity Incentive Plan, shares		4,803	87,398
Issuance of preferred stock, net of fees and expenses		$ 1		19,013				19,014
Issuance of preferred stock, net of fees and expenses, shares		828,000
Issuance of preferred stock in connection with the Meridian acquisition				5,000				5,000
Issuance of preferred stock in connection with an acquisition, shares		200,000
Issuance of warrants in connection with the Meridian acquisition				4,770				4,770
Stock-based compensation, net of cash settlements				1,439				1,439
Preferred stock dividends				(3,277)				(3,277)
Balance at Jun. 30, 2020		$ 4	$ 13	113,798	(32,369)	(1,417)	(662)	(79,367)
Balance, shares at Jun. 30, 2020		4,360,998	13,195,490
Balance at Dec. 31, 2020		$ 5	$ 14	136,781	(33,889)	(1,004)	(662)	101,245
Balance, shares at Dec. 31, 2020		5,475,279	14,121,044
Net loss					(1,964)			(1,964)
Foreign currency translation adjustment						345		345
Issuance of stock under the equity incentive plan		$ 1		(1)
Issuance of stock under the equity incentive plan, shares		27,682	161,545
Stock-based compensation, net of cash settlements				623				623
Exercise of common stock warrants			$ 1	6,391				6,392
Exercise of common stock warrants, shares			858,000
Preferred stock dividends				(3,128)				(3,128)
Balance at Mar. 31, 2021		$ 6	$ 15	140,666	(35,853)	(659)	(662)	103,513
Balance, shares at Mar. 31, 2021		5,502,961	15,140,589
Balance at Dec. 31, 2020		$ 5	$ 14	136,781	(33,889)	(1,004)	(662)	101,245
Balance, shares at Dec. 31, 2020		5,475,279	14,121,044
Net loss								(2,191)
Foreign currency translation adjustment	[1]							(60)
Preferred stock dividends								(6,767)
Balance at Jun. 30, 2021		$ 5	$ 15	135,551	(36,080)	(1,064)	(662)	97,765
Balance, shares at Jun. 30, 2021		5,291,383	15,352,405
Balance at Mar. 31, 2021		$ 6	$ 15	140,666	(35,853)	(659)	(662)	103,513
Balance, shares at Mar. 31, 2021		5,502,961	15,140,589
Net loss					(227)			(227)
Foreign currency translation adjustment						(405)		(405)	[1]
Issuance of stock under the Amended and Restated Equity Incentive Plan
Issuance of stock under the Amended and Restated Equity Incentive Plan, shares		4,244	33,724
Issuance of preferred stock, net of fees and expenses				1,360				1,360
Issuance of preferred stock, net of fees and expenses, shares			178,092
Cancellation of shares held in escrow		$ (1)		(4,000)				(4,001)
Cancellation of shares held in escrow, shares		(215,822)
Stock-based compensation, net of cash settlements				1,163				1,163
Preferred stock dividends				(3,638)				(3,638)
Balance at Jun. 30, 2021		$ 5	$ 15	$ 135,551	$ (36,080)	$ (1,064)	$ (662)	$ 97,765
Balance, shares at Jun. 30, 2021		5,291,383	15,352,405
[1]	No tax effect has been recorded as the Company recorded a valuation allowance against the tax benefit from its foreign currency translation adjustments.

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
OPERATING ACTIVITIES:
Net loss	$ (2,191,000)	$ (7,294,000)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	6,185,000	3,643,000
Lease amortization	1,455,000	1,338,000
Deferred revenue	(133,000)	1,000
Provision for doubtful accounts	257,000	285,000
Provision (benefit) for deferred income taxes	126,000	(100,000)
Foreign exchange gain	(59,000)	(333,000)
Interest accretion	288,000	331,000
Stock-based compensation expense	3,002,000	3,188,000
Adjustment of goodwill	36,000
Changes in operating assets and liabilities, net of businesses acquired:
Accounts receivable	(1,687,000)	1,604,000
Contract asset	1,037,000	343,000
Inventory	(42,000)	182,000
Other assets	(120,000)	(524,000)
Accounts payable and other liabilities	(6,073,000)	(5,592,000)
Net cash provided by (used in) operating activities	2,081,000	(2,928,000)
INVESTING ACTIVITIES:
Purchase of property and equipment	(1,484,000)	(817,000)
Capitalized software	(3,254,000)	(2,622,000)
Cash paid for acquisitions (net)	(12,261,000)	(23,716,000)
Net cash used in investing activities	(16,999,000)	(27,155,000)
FINANCING ACTIVITIES:
Preferred stock dividends paid	(7,198,000)	(4,472,000)
Settlement of tax withholding obligations on stock issued to employees	(1,572,000)	(1,048,000)
Repayments of notes payable, net	(391,000)	(186,000)
Proceeds from exercise of warrants	6,392,000
Proceeds from issuance of common stock, net of expenses	1,360,000
Proceeds from line of credit	5,000,000	19,500,000
Repayment from line of credit		(9,750,000)
Net proceeds from issuance of preferred stock		19,014,000
Net cash provided by financing activities	3,591,000	23,058,000
EFFECT OF EXCHANGE RATE CHANGES ON CASH	(96,000)	(437,000)
NET DECREASE IN CASH AND RESTRICTED CASH	(11,423,000)	(7,462,000)
CASH - beginning of the period	20,925,000	19,994,000
CASH AND RESTRICTED CASH - end of the period	9,502,000	12,532,000
SUPPLEMENTAL NONCASH INVESTING AND FINANCING ACTIVITIES:
Preferred stock (cancelled) issued in connection with an acquisition	(4,000,000)	24,000,000
Contingent consideration	6,500,000
Vehicle financing obtained		28,000
Dividends declared, not paid	3,810,000	3,194,000
Warrants issued		5,070,000
SUPPLEMENTAL INFORMATION - Cash paid during the period for:
Income taxes	92,000	62,000
Interest	$ 39,000	$ 111,000

ORGANIZATION AND BUSINESS

ORGANIZATION AND BUSINESS	6 Months Ended
	Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION AND BUSINESS	1. ORGANIZATION AND BUSINESS CareCloud, Inc., formerly MTBC, Inc. (“CareCloud”, and together with its consolidated subsidiaries, the “Company”, “we”, “us” and/or “our”) is a healthcare information technology company that provides a full suite of proprietary cloud-based solutions, together with related business services, to healthcare providers and hospitals throughout the United States. The Company’s integrated services are designed to help customers increase revenues, streamline workflows and make better business and clinical decisions, while reducing administrative burdens and operating costs. Our Software-as-a-Service (“SaaS”) platform includes revenue cycle management (“RCM”), practice management (“PM”), electronic health record (“EHR”), business intelligence, telehealth, patient experience management (“PXM”) solutions and complementary software tools and business services for high-performance medical groups and health systems. CareCloud has its corporate offices in Somerset, New Jersey and maintains client support teams throughout the U.S., in Pakistan and Azad Jammu and Kashmir (together, the “Pakistan Offices”), and in Sri Lanka. CareCloud was founded in 1999 under the name Medical Transcription Billing, Corp. and incorporated under the laws of the State of Delaware in 2001. In 2004, the Company formed MTBC Private Limited (or “MTBC Pvt. Ltd.”), a 99.9 % majority-owned subsidiary of CareCloud based in Pakistan. The remaining 0.01 % of the shares of MTBC Pvt. Ltd. is owned by the founder and Executive Chairman of CareCloud. In 2016, the Company formed MTBC Acquisition Corp. (“MAC”), a Delaware corporation, in connection with its acquisition of substantially all of the assets of MediGain, LLC and its subsidiary, Millennium Practice Management Associates, LLC (together “MediGain”). MAC has a wholly owned subsidiary in Sri Lanka, RCM MediGain Colombo, Pvt. Ltd. In May 2018, the Company formed CareCloud Practice Management, Corp. (“CPM”), a Delaware corporation, to operate the medical practice management business acquired from Orion Healthcorp. In January 2020, the Company purchased CareCloud Corporation, a company whose name we took. That company is now known as CareCloud Health, Inc. (“CCH”). In June 2020, the Company purchased Meridian Billing Management Co. and its affiliate Origin Holdings, Inc. (collectively “Meridian” and sometimes referred to as “Meridian Medical Management”). During March 2021, the Company formed a new wholly-owned subsidiary, CareCloud Acquisition, Corp. (“CAC”). In June 2021, CAC purchased certain assets and assumed certain liabilities of MedMatica Consulting Associates Inc., (“MedMatica”) and purchased the stock of Santa Rosa Staffing, Inc., (“SRS”). The assets and liabilities of MedMatica were merged into SRS and the company was renamed medSR, Inc. (“medSR”). See Note 3. During 2020, a New Jersey corporation, talkMD Clinicians, PA (“talkMD”), was formed by the wife of the Executive Chairman, who is a licensed physician, to provide telehealth services. talkMD was determined to be a variable interest entity (“VIE”) for financial reporting purposes because the entity will be controlled by the Company. As of June 30, 2021, talkMD had not yet commenced operations or had any transactions or agreements with the Company or otherwise.

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION	2. BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial reporting and as required by Regulation S-X, Rule 8-03. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of the Company’s management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of items of a normal and recurring nature) necessary to present fairly the Company’s financial position as of June 30, 2021, the results of operations for the three months and six months ended June 30, 2021 and 2020 and cash flows for the six months ended June 30, 2021 and 2020. When preparing financial statements in conformity with GAAP, the Company must make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. The condensed consolidated balance sheet as of December 31, 2020 was derived from our audited consolidated financial statements. The accompanying unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2020, which are included in the Company’s Annual Report on Form 10-K, filed with the SEC on February 25, 2021. Recent Accounting Pronouncements On February 14, 2018, the FASB issued ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In June 2018, the FASB issued ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40). In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments.

ACQUISITIONS

ACQUISITIONS	6 Months Ended
	Jun. 30, 2021
Business Combination and Asset Acquisition [Abstract]
ACQUISITIONS	3. ACQUISITIONS 2021 Acquisition On June 1, 2021, CAC entered into an Asset and Stock Purchase Agreement (“Purchase Agreement”) with MedMatica and its sole shareholder. Pursuant to the Purchase Agreement, CAC acquired (i) all of the issued and outstanding capital stock of SRS, a Delaware corporation, and (ii) all of the MedMatica assets that were used in MedMatica’s and SRS’ business. Certain MedMatica liabilities were also assumed under the Purchase Agreement. The total cash consideration was $ 10 million plus a working capital adjustment of approximately $ 3.8 million. The Purchase Agreement also provides that if during the 18-month period commencing on June 1, 2021 (the “Earn-Out Period”), certain EBITDA and revenue targets with respect to the assets and capital stock purchased under the Purchase Agreement are achieved, then CAC shall pay MedMatica an earn-out up to a maximum of $ 8 5 MedMatica and SRS are in the business of providing a broad range of specialty consulting services to hospitals and large healthcare groups, including certain consulting services related to healthcare IT application services and implementations, medical practice management, and revenue cycle management. The acquisition has been accounted for as a business combination. A summary of the total consideration is as follows: SUMMARY OF TOTAL CONSIDERATION ON BUSINESS CONSIDERATION medSR Purchase Price ($ in thousands) Cash $ 12,261 Amounts held in escrow 1,571 Contingent consideration 6,500 - - Total purchase price $ 20,332 The Company engaged a third party valuation specialist to assist the Company in valuing the assets acquired and liabilities assumed from MedMatica. The following table summarizes the preliminary purchase price allocation. The Company expects to finalize the purchase price allocation during the third or fourth quarter of 2021 and is finalizing the projections and the valuation of the acquired assets and assumed liabilities. The preliminary purchase price allocation for medSR is summarized as follows: SCHEDULE OF ASSETS ACQUIRED AND LIABILITIES ASSUMED ($ in thousands) Accounts receivable $ 2,705 Receivable from seller 108 Prepaid expenses 138 Contract asset 2,402 Property and equipment 94 Operating lease right-of-use assets - Customer relationships 4,500 Technology - Acquired backlog 500 Trademark - Software - Goodwill 11,406 Other long term assets - Accounts payable (505 ) Accrued expenses & compensation (996 ) Current loan payable - Operating lease liabilities - Other current liabilities - Deferred revenue (20 ) Total preliminary purchase price allocation $ 20,332 The acquired accounts receivable is recorded at fair value which represents amounts that have subsequently been paid or were expected to be paid by clients. The fair value of customer relationships was based on the estimated discounted cash flows generated by these intangibles. The goodwill represents the Company’s ability to have an expanded local presence in additional markets and operational synergies that we expect to achieve that would not be available to other market participants. A portion of the goodwill from this acquisition is deductible ratably for income tax purposes over fifteen years. The purchase agreement provides that if revenue and EBITDA over the next 18 months exceed certain specified amounts, there will be an earn-out payment to the seller equal to such excess, up to $13 million. 6.5 As part of the acquisition, $ 1.5 500,000 18 12.3 The weighted-average amortization period of the acquired intangible assets is approximately three years Revenue earned from the clients obtained from the medSR acquisition on June 1, 2021 was approximately $ 2.6 million during the three and six months ended June 30, 2021. The medSR acquisition added additional clients to the Company’s customer base and, similar to previous acquisitions, broadened the Company’s presence in the healthcare information technology industry through expansion of its customer base and by increasing available customer relationship resources and specialized trained staff. 2020 Acquisitions On June 16, 2020, the Company entered into a Stock Purchase Agreement with Meridian Billing Management Co., a Vermont corporation, Origin Holdings, Inc., a Delaware corporation, and GMM II Holdings, LLC, a Delaware limited liability company (“Seller”), pursuant to which the Company purchased all of the issued and outstanding capital stock of Meridian from the Seller. Meridian is in the business of providing medical billing, revenue cycle management, electronic medical records, medical coding and related services. These revenues have been included in the Company’s Healthcare IT segment. The acquisition has been accounted for as a business combination. The total consideration paid at closing was $ 11.9 200,000 2,250,000 7.50 two years 4.8 A summary of the total consideration is as follows: SUMMARY OF TOTAL CONSIDERATION ON BUSINESS CONSIDERATION Meridian Purchase Price ($ in thousands) Cash $ 11,864 Preferred stock 5,000 Warrants 4,770 Total purchase price $ 21,634 Of the Preferred Stock consideration, 100,000 The Company’s Preferred Stock and warrants issued as part of the acquisition consideration were issued in a transaction exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”). The warrants were valued using the Black-Scholes method. The Company registered for resale under the Securities Act the Preferred Stock and the securities underlying the warrants. The Meridian acquisition added additional clients to the Company’s customer base and, similar to previous acquisitions, broadened the Company’s presence in the healthcare information technology industry through geographic expansion of its customer base and by increasing available customer relationship resources and specialized trained staff. The Company engaged a third-party valuation specialist to assist the Company in valuing the assets acquired and liabilities assumed from Meridian. The following table summarizes the purchase price allocation: SCHEDULE OF ASSETS ACQUIRED AND LIABILITIES ASSUMED ($ in thousands) Accounts receivable $ 3,558 Prepaid expenses 704 Contract asset 881 Property and equipment 426 Operating lease right-of-use assets 2,776 Customer relationships 12,900 Technology 900 Goodwill 13,789 Accounts payable (3,373 ) Accrued expenses & compensation (3,932 ) Deferred revenue (907 ) Operating lease liabilities (6,025 ) Other current liabilities (63 ) Total purchase price allocation $ 21,634 The acquired accounts receivable is recorded at fair value which represents amounts that have subsequently been paid or were expected to be paid by clients. The fair value of customer relationships was based on the estimated discounted cash flows generated by these intangibles. The goodwill from this acquisition is not deductible for income tax purposes and represents the Company’s ability to have an expanded local presence in additional markets and operational synergies that we expect to achieve that would not be available to other market participants. The weighted-average amortization period of the acquired intangible assets is approximately three years Revenue earned from the clients obtained from the Meridian acquisition was approximately $ 9.8 million and $ 18.7 million during the three and six months ended June 30, 2021, respectively, and was approximately $ 1.3 million during the three and six months ended June 30, 2020. On January 8, 2020, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with CareCloud Corporation, a Delaware corporation which was subsequently renamed CareCloud Health, Inc. (“CCH”), MTBC Merger Sub, Inc., a Delaware corporation and wholly-owned subsidiary of the Company (“Merger Sub”) and Runway Growth Credit Fund Inc. (“Runway”), solely in its capacity as a seller representative, pursuant to which Merger Sub merged with and into CCH (the “Merger”), with CCH surviving as a wholly-owned subsidiary of the Company. The Merger became effective simultaneously with the execution of the Merger Agreement. The acquisition has been accounted for as a business combination. The total consideration for the Merger included approximately $ 11.9 5.1 760,000 The Merger Agreement provided that if CCH’s 2020 revenues exceed $36 million, there will be an earn-out payment to the seller equal to such excess, up to $3 million. 2,000,000 1,000,000 7.50 two years 1,000,000 10.00 three years A summary of the total consideration is as follows: SUMMARY OF TOTAL CONSIDERATION ON BUSINESS CONSIDERATION CCH Purchase Price ($ in thousands) Cash $ 11,853 Preferred stock 19,000 Warrants 300 Contingent consideration 1,000 Total purchase price $ 32,153 Of the Preferred Stock consideration, 160,000 24 100,000 18 513,000 160,000 It was determined that 55,822 $ 1.3 . Dividends previously accrued on these shares of $ 102,000 The Company’s Preferred Stock and warrants issued as part of the Merger consideration were issued in a transaction exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”). The warrants were valued using the Black-Scholes method. The Company registered for resale under the Securities Act the Preferred Stock and the securities underlying the warrants. The CCH acquisition added additional clients to the Company’s customer base. The Company acquired CCH’s software technology and related business. Similar to previous acquisitions, this transaction broadened the Company’s presence in the healthcare information technology industry through geographic expansion of its customer base and by increasing available customer relationship resources and specialized trained staff. The Company engaged a third-party valuation specialist to assist the Company in valuing the assets acquired and liabilities assumed from CCH. The following table summarizes the purchase price allocation: SCHEDULE OF ASSETS ACQUIRED AND LIABILITIES ASSUMED ($ in thousands) Accounts receivable $ 2,299 Prepaid expenses 1,278 Contract asset 538 Property and equipment 403 Operating lease right-of-use assets 2,859 Customer relationships 8,000 Trademark 800 Software 4,800 Goodwill 22,868 Other long term assets 540 Accounts payable (6,943 ) Accrued expenses (2,081 ) Current loan payable (80 ) Operating lease liabilities (2,859 ) Deferred revenue (269 ) Total purchase price allocation $ 32,153 The acquired accounts receivable is recorded at fair value which represents amounts that have subsequently been paid or were expected to be paid by clients. The fair value of customer relationships was based on the estimated discounted cash flows generated by these intangibles. The goodwill from this acquisition is not deductible for income tax purposes and represents the Company’s ability to have an expanded local presence in additional markets and operational synergies that we expect to achieve that would not be available to other market participants. The weighted-average amortization period of the acquired intangible assets is approximately three years. Revenue earned from the clients obtained from the CCH acquisition was approximately $ 8.9 million during the three months ended June 30, 2021 and approximately $ 17.2 million during the six months ended June 30, 2021 . Revenue from these clients was approximately $ 7.5 15.1 Pro forma financial information (Unaudited) The unaudited pro forma information below represents the condensed consolidated results of operations as if the CCH, Meridian and medSR acquisitions occurred on January 1, 2020. The pro forma information has been included for comparative purposes and is not indicative of results of operations that the Company would have had if the acquisitions occurred on the above date, nor is it necessarily indicative of future results. The unaudited pro forma information reflects material, non-recurring pro forma adjustments directly attributable to the business combinations. The difference between the actual revenue and the pro forma revenue is approximately $ 8.1 17.8 SCHEDULE OF BUSINESS ACQUISITION, PRO FORMA INFORMATION 2021 2020 2021 2020 Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 ($ in thousands except per share amounts) Total revenue $ 42,170 $ 29,997 $ 81,625 $ 66,267 Net income (loss) $ 193 $ (7,403 ) $ (618 ) $ (11,619 ) Net loss attributable to common shareholders $ (3,445 ) $ (10,772 ) $ (7,384 ) $ (18,246 ) Net loss per common share $ (0.24 ) $ (0.87 ) $ (0.52 ) $ (1.48 )

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS - NET	6 Months Ended
	Jun. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND INTANGIBLE ASSETS - NET	4. GOODWILL AND INTANGIBLE ASSETS - NET Goodwill consists of the excess of the purchase price over the fair value of identifiable net assets of businesses acquired. The following is the summary of the changes to the carrying amount of goodwill for the six months ended June 30, 2021 and the year ended December 31, 2020: SCHEDULE OF INTANGIBLE ASSETS AND GOODWILL Six Months Ended Year Ended June 30, 2021 December 31, 2020 ($ in thousands) Beginning gross balance $ 49,291 $ 12,634 Acquisitions 11,370 36,657 Ending gross balance $ 60,661 $ 49,291 Intangible assets include customer contracts and relationships and covenants not-to-compete acquired in connection with acquisitions, as well as trademarks acquired and software costs. Intangible assets - net as of June 30, 2021 and December 31, 2020 consist of the following: SCHEDULE OF FINITE-LIVED INTANGIBLE ASSETS June 30, 2021 December 31, 2020 ($ in thousands) Contracts and relationships acquired $ 48,997 $ 44,497 Capitalized software 9,014 5,760 Non-compete agreements 1,236 1,236 Other intangible assets 8,412 7,906 Total intangible assets 67,659 59,399 Less: Accumulated amortization 34,392 29,421 Intangible assets - net $ 33,267 $ 29,978 Amortization expense was approximately $ 5.0 3.2 2.6 2.1 The remaining weighted-average amortization period is approximately 3.2 As of June 30, 2021, future amortization scheduled to be expensed is as follows: SCHEDULE OF FINITE-LIVED INTANGIBLE ASSETS, FUTURE AMORTIZATION EXPENSE Years ending December 31, ($ in thousands) 2021 (six months) $ 6,730 2022 11,941 2023 8,915 2024 4,031 2025 300 Thereafter 1,350 Total $ 33,267

NET LOSS PER COMMON SHARE

NET LOSS PER COMMON SHARE	6 Months Ended
	Jun. 30, 2021
Earnings Per Share [Abstract]
NET LOSS PER COMMON SHARE	5. NET LOSS PER COMMON SHARE The following table reconciles the weighted-average shares outstanding for basic and diluted net loss per share for the three and six months ended June 30, 2021 and 2020: SCHEDULE OF LOSSES PER SHARE, BASIC AND DILUTED 2021 2020 2021 2020 Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 ($ in thousands, except share and per share amounts) Basic and Diluted: Net loss attributable to common shareholders $ (3,865 ) $ (8,069 ) $ (8,958 ) $ (13,214 ) Weighted-average common shares used to compute basic and diluted loss per share 14,430,882 12,395,197 14,258,772 12,353,007 Net loss attributable to common shareholders per share - Basic and Diluted $ (0.27 ) $ (0.65 ) $ (0.63 ) $ (1.07 ) All unvested restricted stock units (“RSUs”) and unexercised warrants have been excluded from the above calculations as they were anti-dilutive. Vested RSUs, vested restricted shares and exercised warrants have been included in the above calculations.

DEBT

DEBT	6 Months Ended
	Jun. 30, 2021
Debt Disclosure [Abstract]
DEBT	6. DEBT SVB 200 5 10 5 1.50 6.5 1 The debt is secured by all of the Company’s domestic assets and 65% of the shares in its offshore facilities. Future acquisitions are subject to approval by SVB. Vehicle Financing Notes have three to six year terms and were issued at current market rates. Insurance Financing 4.0

LEASES

LEASES	6 Months Ended
	Jun. 30, 2021
Leases
LEASES	7. LEASES We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, current operating lease liability and non-current operating lease liability in our condensed consolidated balance sheets as of June 30, 2021 and December 31, 2020. Each time the Company acquires a business, the ROU assets and the lease liabilities are recorded at fair value as of the date of acquisition. The Company does not have any finance leases. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. We use our estimated incremental borrowing rates, which are derived from information available at the lease commencement date, in determining the present value of lease payments. We give consideration to our bank financing arrangements, geographical location and collateralization of assets when calculating our incremental borrowing rates. Our lease terms include options to extend the lease when it is reasonably certain that we will exercise that option. Leases with a term of less than 12 months are not recorded in the condensed consolidated balance sheets. Our lease agreements do not contain any residual value guarantees. For real estate leases, we account for the lease and non-lease components as a single lease component. Some leases include escalation clauses and termination options that are factored in the determination of the lease payments when appropriate. If a lease is modified after the effective date, the operating lease ROU asset and liability is re-measured using the current incremental borrowing rate. During the six months ended June 30, 2021, there were $ 466,000 of unoccupied lease charges for two of the Company’s facilities. During the six months ended June 30, 2020, there were $ 64,000 of unoccupied lease charges and a lease impairment of approximately $ 297,000 was recorded since the Company is no longer using one of its leased facilities. In February 2021, the Company was able to settle one of the lease obligations assumed in connection with the Meridian acquisition for an amount that approximated the remaining lease liability. We lease all of our facilities and some equipment. Lease expense is included in direct operating costs and general and administrative expenses in the condensed consolidated statements of operations based on the nature of the expense. As of June 30, 2021, we had 40 leased properties, six in Medical Practice Management and 34 in Healthcare IT, with remaining terms ranging from less than one year five years The components of lease expense were as follows: SCHEDULE OF LEASE EXPENSE 2021 2020 2021 2020 Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 ($ in thousands) Operating lease cost $ 1,058 $ 835 $ 2,115 $ 1,634 Short-term lease cost 22 1 44 10 Variable lease cost 8 2 14 16 Total- net lease cost $ 1,088 $ 838 $ 2,173 $ 1,660 Short-term lease cost represents leases that were not capitalized as the lease term as of the later of January 1, 2021 or the beginning of the lease was less than 12 months. Variable lease costs include utilities, real estate taxes and common area maintenance costs. Supplemental balance sheet information related to leases was as follows: SCHEDULE OF SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO LEASES June 30, 2021 December 31, 2020 ($ in thousands) Operating leases: Operating lease ROU assets, net $ 7,712 $ 7,743 Current operating lease liabilities $ 4,098 $ 4,729 Non-current operating lease liabilities 5,727 6,297 Total operating lease liabilities $ 9,825 $ 11,026 Operating leases: ROU assets $ 9,163 $ 10,648 Asset lease expense (1,455 ) (2,889 ) Foreign exchange gain (loss) 4 (16 ) ROU assets, net $ 7,712 $ 7,743 Weighted average remaining lease term (in years): Operating leases 4.39 2.71 Weighted average discount rate: Operating leases 6.79 % 6.76 % Supplemental cash flow and other information related to leases was as follows: SCHEDULE OF SUPPLEMENTAL CASH FLOW AND OTHER INFORMATION RELATED TO LEASES 2021 2020 2021 2020 Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 ($ in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,336 $ 764 $ 2,732 $ 1,443 ROU assets obtained in exchange for lease liabilities: Operating leases, net of impairment and terminations $ 1,537 $ 2,647 $ 1,748 $ 6,264 Maturities of lease liabilities are as follows: SCHEDULE OF MATURITIES OF LEASE LIABILITIES Operating leases - Year ending December 31, ($ in thousands) 2021 (six months) $ 2,474 2022 4,047 2023 1,931 2024 739 2025 481 Thereafter 1,972 Total lease payments 11,644 Less: imputed interest (1,819 ) Total lease obligations 9,825 Less: current obligations (4,098 ) Long-term lease obligations $ 5,727 As of June 30, 2021, we have one operating lease commitment that has not yet commenced with an aggregate gross lease liability of approximately $ 32,000

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	8. COMMITMENTS AND CONTINGENCIES Legal Proceedings On April 23, 2019, the Appellate Division reversed the Chancery Court’s ruling that CareCloud is required to participate in the Arbitration and remanded the case for further proceedings before the Chancery Court on that issue. The Appellate Division upheld the Chancery Court’s ruling that MAC was required to participate in the Arbitration. The parties completed discovery in the remanded matter, and both CareCloud and RPRWC filed cross-motions for summary judgement in their favor. On February 6, 2020, the Chancery Court denied RPRWC’s motion for summary judgment and granted CareCloud’s motion for summary judgment, holding that CareCloud cannot be compelled to participate in the Arbitration. RPRWC has informed CareCloud that it does not intend to appeal the Chancery Court’s ruling and that it intends to move forward solely against MAC in the Arbitration. On March 25, 2020, the Chancery Court lifted the stay of arbitration relative to RPRWC and MAC. Due to conflicting information provided by RPRWC, it is unclear what the extent of the claimed damages are in this matter which at this time appear to be entirely speculative. According to its arbitration demand, RPRWC seeks compensatory damages of $6.6 million, plus costs, for MPMA’s alleged breach of the billing services agreement 6.6 20 11 Through the CCH transaction, we acquired CCH’s software technology and related business, of which certain elements were, at the time of the acquisition, subject to a civil investigation to determine pre-acquisition compliance with certain federal regulatory requirements. Following the closing of the transaction, the Company continued to cooperate with the inquiry as CCH had historically done since the commencement of the investigation in July of 2018. This element was considered as part of the transaction as $ 4 million of the transaction’s consideration was held in escrow for the resolution of this investigation. The Company accrued $ 4.2 million to resolve this investigation, of which up to $ 4 million is the escrow, which has been recorded as an indemnification asset which is included in the condensed consolidated balance sheet at December 31, 2020 in prepaid expenses and other current assets with an offsetting amount in accrued expenses. The Company settled the obligation in April 2021 substantially within the range covered by the escrowed funds. From time to time, we may become involved in other legal proceedings arising in the ordinary course of our business. Including the proceedings described above, we are not presently a party to any legal proceedings that, in the opinion of our management, would individually or taken together have a material adverse effect on our business, consolidated results of operations, financial position or cash flows of the Company.

RELATED PARTIES

RELATED PARTIES	6 Months Ended
	Jun. 30, 2021
Related Party Transactions [Abstract]
RELATED PARTIES	9. RELATED PARTIES The Company had sales to a related party, a physician who is the wife of the Executive Chairman. Revenues from this customer were approximately $ 9,000 and $ 7,000 for the six months ended June 30, 2021 and 2020, respectively and $ 5,000 and $ 2,000 for the three months ended June 30, 2021 and 2020, respectively. As of both June 30, 2021, and December 31, 2020, the receivable balance due from this customer was approximately $ 2,000 . The Company is a party to a nonexclusive aircraft dry lease agreement with Kashmir Air, Inc. (“KAI”), which is owned by the Executive Chairman. The Company recorded an expense of approximately $ 60,000 73,000 30,000 32,000 1,000 The Company leases its corporate offices in New Jersey, its temporary housing for its foreign visitors, a printing and mailing facility and its backup operations center in Bagh, Pakistan, from the Executive Chairman. The related party rent expense for the six months ended June 30, 2021 and 2020 was approximately $ 94,000 93,000 49,000 46,000 807,000 13,000 Included in the ROU asset at June 30, 2021 and December 31, 2020 is approximately $ 257,000 and $ 283,000 , respectively, applicable to the related party leases. Included in the current and non-current operating lease liability at June 30, 2021 is approximately $ 196,000 and $ 72,000 , respectively, applicable to the related party leases. At December 31, 2020, the current and non-current operating lease liability applicable to related party leases was approximately $ 202,000 and $ 92,000 , respectively. During the first quarter of 2020, talkMD Clinicians, PA, a New Jersey corporation was formed to provide telehealth services. This entity is owned by the wife of the Executive Chairman since an entity providing medical services must be owned by a physician. The Company did not have any transactions with this entity since its formation.

SHAREHOLDERS_ EQUITY

SHAREHOLDERS’ EQUITY	6 Months Ended
	Jun. 30, 2021
Equity [Abstract]
SHAREHOLDERS’ EQUITY	10. SHAREHOLDERS’ EQUITY The Company may sell up to $ 50 3% During the quarter, the Company sold 178,092 shares of common stock under its ATM and received net proceeds of approximately $ 1.4 million. Also during the quarter, the Company cancelled 215,822 shares of preferred stock that were held in escrow from the CCH acquisition as the matters related to the escrow were settled in cash.

REVENUE

REVENUE	6 Months Ended
	Jun. 30, 2021
Revenue from Contract with Customer [Abstract]
REVENUE	11. REVENUE Introduction The Company accounts for revenue in accordance with ASC 606, Revenue from Contracts with Customers Many technology-enabled business solutions are invoiced based on receipt of payment by the practices which are our clients, for medical billing claims where the provider utilized our software or where we submitted a claim. For these solutions, the Company estimates the value of the consideration it will earn over the remaining contractual period as our services are provided and recognizes the fees over the term; this estimation involves predicting the amounts our clients will ultimately collect associated with the services they provided. The selling price of the Company’s services equals the contractual price. Certain significant estimates, such as payment-to-charge ratios, effective billing rates and the estimated contractual payment periods are required to measure revenue under ASC 606. We apply the portfolio approach as permitted by ASC 606 as a practical expedient to contracts with similar characteristics and we use estimates and assumptions when accounting for those portfolios. Our contracts generally include standard commercial payment terms. We have no significant obligations for refunds, warranties or similar obligations and our revenue does not include taxes collected from our customers. Disaggregation of Revenue from Contracts with Customers We derive the majority of our revenue from providing technology-enabled business solutions, including our integrated SaaS-based software platform and revenue cycle management services. In addition, we derive revenues from professional services, group purchasing services, printing and mailing services, and medical practice management services. The following table represents a disaggregation of revenue for the three months and six months ended June 30: SCHEDULE OF DISAGGREGATION OF REVENUE Three Months Ended Six Months Ended June 30, 2021 2020 2021 2020 ($ in thousands) Healthcare IT: Technology-enabled business solutions $ 27,145 $ 16,215 $ 52,990 $ 34,059 Professional services 3,497 398 4,114 789 Printing and mailing services 272 324 656 753 Group purchasing services 171 189 359 366 Medical Practice Management: Medical practice management services 2,980 2,453 5,715 5,479 Total $ 34,065 $ 19,579 $ 63,834 $ 41,446 Technology-enabled business solutions: Most of our revenue comes from clients who are using subscription-based technology-enabled business solutions. These solutions typically include one or more elements of our proprietary cloud-based software-as-a-service (“SaaS”) platform, along with revenue cycle management and related services. Practice management software automates the labor-intensive workflow of a medical office in a unified and streamlined manner. EHR software allows our healthcare provider clients to deliver better patient care, document their clinical visits effectively and thus potentially qualify for government incentives, reduce documentation errors and reduce paperwork. Patient experience management software allows patients to schedule appointments, request refills, and view their electronic records online or via their mobile device. Business intelligence, robotic process automation, patient experience software, customized applications, interfaces and a variety of other technology solutions support our healthcare clients, either in conjunction with our practice management and EHR platform or through interfaces with third-party platforms. When these software elements are part of the technology-enabled business solution, they are normally included in a price, which is normally expressed as a percentage of the practice’s collections. Revenue cycle management services are the recurring process of submitting and following up on claims with health insurance companies in order for the healthcare providers to receive payment for the services they rendered. Approximately 81 % of our revenue is derived from clients using one or more elements of our technology platform and approximately 19 % comes from clients using our other services. The Company invoices many customers on a monthly basis based on the actual collections received by customers and the agreed-upon rate in the sales contract. The fee for these services typically includes use of practice management software and related tools (on a SaaS basis), electronic health records (on a SaaS basis), medical billing services and use of mobile health solutions. Alternatively, SaaS fees may be fixed based on the number of providers, or may be variable based on usage. We consider the services to be one performance obligation since the promises are not distinct in the context of the contract. The performance obligation consists of a series of distinct services that are substantially the same and have the same periodic pattern of transfer to our customers. In many cases, our clients may terminate their agreements with 90 days’ notice without cause, thereby limiting the term in which we have enforceable rights and obligations, although this time period can vary between clients. Our payment terms are normally net 30 days. Although our contracts typically have stated terms of one or more years, under ASC 606 our contracts are considered month-to-month and accordingly, there is no financing component. For the majority of our contracts, the total transaction price is variable because our obligation is to process an unknown quantity of claims, as and when requested by our customers over the contract period. When a contract includes variable consideration, we evaluate the estimate of the variable consideration to determine whether the estimate needs to be constrained; therefore, we include variable consideration in the transaction price only to the extent that it is probable that a significant reversal of the amount of cumulative revenue recognized will not occur when the uncertainty associated with variable consideration is subsequently resolved. Estimates to determine variable consideration such as payment to charge ratios, effective billing rates, and the estimated contractual payment periods are updated at each reporting date. Revenue is recognized over the performance period using the input method. Included in technology-enabled business solutions are ancillary services such as coding, credentialing and transcription that are rendered in connection with the delivery of revenue cycle management and related services. The Company invoices customers monthly, based on the actual amount of services performed at the agreed upon rate in the contract. These services are only offered to revenue cycle management customers. These services do not represent a material right because the services are optional to the customer and customers electing these services are charged the same price for those services as if they were on a standalone basis. Each individual ancillary service transaction processed represents a performance obligation, which is satisfied over time as that individual service is rendered. Also included in technology-enabled business solutions are medical billing clearinghouse services which takes claim information from customers, checks the claims for errors and sends this information electronically to insurance companies. The Company invoices customers on a monthly basis based on the number of claims submitted and the agreed-upon rate in the agreement. This service is provided to medical practices and providers to medical practices who are not revenue cycle management customers. The performance obligation is satisfied once the relevant submissions are completed. Professional services: The Company provides implementation and professional services to certain customers and records revenue monthly on a time and materials or a fixed rate basis. These services consist of implementation, advisory and on demand staffing. This is a separate performance obligation from any revenue cycle management and SaaS services provided, for which the Company receives and records monthly fees. The performance obligation is satisfied over time as the professional services are rendered. Substantially all of the professional services obligations consist of a series of distinct services that are substantially the same and have the same periodic pattern of transfer to our customers, Revenue is recognized over time. Other revenue streams The Company provides printing and mailing services for both technology-enabled business solutions and a customer that does not utilize our technology-enabled business solutions, and invoices on a monthly basis based on the number of prints, the agreed-upon rate per print and the postage incurred. The performance obligation is satisfied once the printing and mailing is completed. The Company also provides group purchasing services which enable medical providers to purchase various vaccines directly from selected pharmaceutical companies at a discounted price. Currently, there are approximately 4,000 medical providers who are members of the program. Revenue is recognized as the vaccine shipments are made to the medical providers. Fees from the pharmaceutical companies are paid either quarterly or annually and the Company adjusts its revenue accrual at the time of payment. The Company makes significant judgments regarding the variable consideration which we expect to be entitled to for the group purchasing services which includes the anticipated shipments to the members enrolled in the program, anticipated volumes of purchases made by the members, and the changes in the number of members. The amounts recorded are constrained by estimates of decreases in shipments and loss of members to avoid a significant revenue reversal in the subsequent period. The only performance obligation is to provide the pharmaceutical companies with the medical providers who want to become members in order to purchase vaccines. The performance obligation is satisfied once the medical provider agrees to purchase a specific quantity of vaccines and the medical provider’s information is forwarded to the vaccine suppliers. The Company records a contract asset for revenue earned and not paid as the ultimate payment is conditioned on achieving certain volume thresholds. For all of the above revenue streams other than group purchasing services and printing and mailing, revenue is recognized over time, which is typically one month or less, which closely matches the point in time that the customer simultaneously receives and consumes the benefits provided by the Company. For the group purchasing services, revenue is recognized at a point in time. Each service is substantially the same and has the same periodic pattern of transfer to the customer. Each of the services provided above is considered a separate performance obligation. Medical practice management services: The Company also provides medical practice management services under long-term management service agreements to three medical practices. We provide the medical practices with the nurses, administrative support, facilities, supplies, equipment, marketing, RCM, accounting, and other non-clinical services needed to efficiently operate their practices. Revenue is recognized as the services are provided to the medical practices. Revenue recorded in the consolidated statements of operations represents the reimbursement of costs paid by the Company for the practices and the management fee earned each month for managing the practice. The management fee is based on either a fixed fee or a percentage of the net operating income. The Company assumes all financial risk for the performance of the managed medical practices. Revenue is impacted by the amount of the costs incurred by the practices and their operating income. The gross billing of the practices is impacted by billing rates, changes in current procedural terminology code reimbursement and collection trends which in turn impacts the management fee that the Company is entitled to. Billing rates are reviewed at least annually and adjusted based on current insurer reimbursement practices. The performance obligation is satisfied as the management services are provided. Our contracts for medical practice management services have approximately an additional 20 years remaining and are only cancellable under very limited circumstances. The Company receives a management fee each month for managing the day-to-day business operations of each medical group as a fixed fee or a percentage payment of the net operating income which is included in revenue in the condensed consolidated statements of operations. Our medical practice management services obligations consist of a series of distinct services that are substantially the same and have the same periodic pattern of transfer to our customers. Revenue is recognized over time; however, for reporting and convenience purposes, the management fee is computed at each month end. Information about contract balances: The contract assets in the condensed consolidated balance sheets represent the revenue associated with the amounts we estimate our clients will ultimately collect if our charges are based on a percentage of collections, together with amounts related to the group purchasing services. As of June 30, 2021, the estimated revenue expected to be recognized in the future related to the remaining performance obligations outstanding was approximately $ 4.1 million. We expect to recognize substantially all of the revenue for the remaining performance obligations over the next three months. Approximately $ 315,000 of the contract asset represents revenue earned, not paid, from the group purchasing services. Approximately $ 1.0 million of the contract asset represents revenue for professional services performed, not yet invoiced to the customer. Accounts receivable are shown separately at their net realizable value in our condensed consolidated balance sheets. Amounts that we are entitled to collect under the applicable contract are recorded as accounts receivable. Invoicing is performed at the end of each month when the services have been provided. The contract asset results from our revenue cycle management services and is due to the timing of revenue recognition, submission of claims from our customers and payments from the insurance providers. The contract asset includes our right to payment for services already transferred to a customer when the right to payment is conditional on something other than the passage of time. For example, contracts for revenue cycle management services where we recognize revenue over time but do not have a contractual right to payment until the customer receives payment of their claim from the insurance provider. The contract asset also includes the revenue accrued, not received, for the group purchasing services and revenue earned, not invoiced, for professional services. The contract asset was approximately $ 5.5 3.4 June 30, 2021 and 2020, respectively. Changes in the contract asset are recorded as adjustments to net revenue. The changes primarily result from providing services to customers that result in additional consideration and are offset by our right to payment for services becoming unconditional and changes in the revenue accrued for the group purchasing services. The contract asset for our group purchasing services is reduced when we receive payments from vaccine manufacturers and is increased for revenue earned, not received. The contract asset for professional services is reduced when the customer is invoiced and is increased as services are rendered. Deferred revenue represents sign-up fees received from customers that are amortized over three years. The opening and closing balances of the Company’s accounts receivable, contract asset and deferred revenue are as follows for the six months ended June 30, 2021 and 2020: SCHEDULE OF ACCOUNTS RECEIVABLE, CONTRACT ASSET AND DEFERRED REVENUE Accounts Receivable, Net Contract Asset Deferred Revenue (current) Deferred Revenue ($ in thousands) Balance as of January 1, 2021 $ 12,089 $ 4,105 $ 1,173 $ 305 medSR acquisition 2,705 2,402 20 - Increase (decrease), net 1,430 (1,037 ) (12 ) (121 ) Balance as of June 30, 2021 $ 16,224 $ 5,470 $ 1,181 $ 184 Balance as of January 1, 2020 $ 6,995 $ 2,385 $ 20 $ 19 CCH acquisition 2,299 538 - 269 Meridian acquisition 3,800 881 907 - (Decrease) increase, net (1,888 ) (376 ) 82 (81 ) Balance as of June 30, 2020 $ 11,206 $ 3,428 $ 1,009 $ 207 Deferred commissions: Our sales incentive plans include commissions payable to employees and third parties at the time of initial contract execution that are capitalized as incremental costs to obtain a contract. The capitalized commissions are amortized over the period the related services are transferred. As we do not offer commissions on contract renewals, we have determined the amortization period to be the estimated client life which is three years for contracts entered into by CCH. Deferred commissions were approximately $ 1.0 836,000 sheets.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	6 Months Ended
	Jun. 30, 2021
Share-based Payment Arrangement [Abstract]
STOCK-BASED COMPENSATION	12. STOCK-BASED COMPENSATION In April 2014, the Company adopted the Medical Transcription Billing, Corp. 2014 Equity Incentive Plan (the “2014 Plan”), reserving 1,351,000 1,500,000 100,000 200,000 2,000,000 300,000 1,329,267 327,909 The equity-based RSUs contain a provision in which the units shall immediately vest and become converted into common shares at the rate of one share per RSU, immediately after a change in control, as defined in the award agreement. The preferred stock RSUs contain a similar provision, which vest and convert to Preferred Stock upon a change in control. Common and preferred stock RSUs In January 2021, the Compensation Committee approved executive bonuses to be paid in shares of Preferred Stock, with the number of shares and the amount based on specified criteria being achieved during the year 2021. The actual amount will be settled in early 2022 based on the achievement of the specified criteria. For the six months ended June 30, 2021, an expense of approximately $ 450,000 The following table summarizes the RSU transactions related to the common and preferred stock under the Equity Incentive Plan for the six months ended June 30, 2021 and 2020: DISCLOSURE OF SHARE-BASED COMPENSATION ARRANGEMENTS BY SHARE-BASED PAYMENT AWARD Common Stock Preferred Stock Outstanding and unvested shares at January 1, 2021 382,435 44,000 Granted 419,159 42,166 Vested (294,575 ) (52,166 ) Forfeited (30,412 ) - Outstanding and unvested shares at June 30, 2021 476,607 34,000 Outstanding and unvested shares at January 1, 2020 451,085 44,000 Granted 618,879 44,000 Vested (326,996 ) (44,000 ) Forfeited (50,896 ) - Outstanding and unvested shares at June 30, 2020 692,072 44,000 The total outstanding and unvested common stock RSUs at June 30, 2021 are classified as equity. Stock-based compensation expense The Company recognizes compensation expense on a straight-line basis over the total requisite service period for the entire award. For stock awards classified as equity, the market price of our common stock or preferred stock on the date of grant is used in recording the fair value of the award and includes the related taxes. For stock awards classified as a liability, the earned amount is marked to market based on the end of period common stock price. The liability for the cash-settled awards was approximately $ 658,000 976,000 The following table summarizes the components of share-based compensation expense for the three months and six months ended June 30, 2021 and 2020: SCHEDULE OF EMPLOYEE SERVICE SHARE-BASED COMPENSATION, ALLOCATION OF RECOGNIZED PERIOD COSTS Stock-based compensation included in the condensed Three Months Ended June 30, Six Months Ended June 30, consolidated statements of operations: 2021 2020 2021 2020 ($ in thousands) Direct operating costs $ 254 $ 259 $ 559 $ 429 General and administrative 1,120 1,217 1,745 2,069 Research and development 72 178 209 254 Selling and marketing 288 227 489 436 Total stock-based compensation expense $ 1,734 $ 1,881 $ 3,002 $ 3,188

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2021
Income Tax Disclosure [Abstract]
INCOME TAXES	13. INCOME TAXES The income tax expense for the three months ended June 30, 2021 was approximately $ 213,000 , comprised of a current tax expense of $ 51,000 and a deferred tax expense of $ 162,000 . The income tax expense for the six months ended June 30, 2021 was approximately $ 212,000 , comprised of a current tax expense of $ 86,000 and a deferred tax expense of $ 126,000 . The deferred tax expense is not anticipated to result in a cash payment. The current income tax provision for the six months ended June 30, 2021 and 2020 primarily relates to state minimum taxes and foreign income taxes. The deferred tax provision for the three and six months ended June 30, 2021 and 2020 relates to the book and tax difference of amortization on indefinite-lived intangibles, primarily goodwill. To the extent allowable, the federal deferred tax provision has been offset by the indefinite life net operating loss. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security (CARES) Act was signed into law. Several new corporate tax provisions were included in the CARES Act, including, but not limited to, the following: increasing the limitation threshold for determining deductible interest expense, class life changes to qualified improvements (in general - from 39 years to 15 years), and the ability to carry back net operating losses incurred from tax years 2018 through 2020 up to the five preceding tax years. The Company has evaluated the income tax provisions of the CARES Act and determined the impact to be either immaterial or not applicable. Under the CARES Act, the Company took advantage of the payroll tax deferral provision. As of both June 30, 2021 and December 31, 2020, the Company has deferred approximately $ 1.9 million of payroll taxes. Of this amount, one-half needs to be repaid by December 31, 2021 and the balance by December 31, 2022. The Company has incurred cumulative losses which make realization of a deferred tax asset difficult to support in accordance with ASC 740. Accordingly, a valuation allowance has been recorded against the Federal and state deferred tax assets as of June 30, 2021 and December 31, 2020.

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	6 Months Ended
	Jun. 30, 2021
Fair Value Disclosures [Abstract]
FAIR VALUE OF FINANCIAL INSTRUMENTS	14. FAIR VALUE OF FINANCIAL INSTRUMENTS As of June 30, 2021, and December 31, 2020, the carrying amounts of accounts receivable, accounts payable and accrued expenses approximated their estimated fair values because of the short-term nature of these financial instruments. Fair value measurements-Level 2 Our notes payable are carried at cost and approximate fair value since the interest rates being charged approximate market rates. As a result, the Company categorizes these borrowings as Level 2 in the fair value hierarchy. Contingent Consideration The Company’s contingent consideration is a Level 3 liability. The fair value of the contingent consideration is primarily driven by changes in revenue estimates related to acquisitions, the passage of time and the associated discount rate. As of June 30, 2021, the contingent consideration is approximately $ 6.5 The following table provides a reconciliation of the beginning and ending balances for the contingent consideration measured at fair value using significant unobservable inputs (Level 3): SCHEDULE OF FAIR VALUE, LIABILITIES MEASURED ON RECURRING BASIS, UNOBSERVABLE INPUT RECONCILIATION Fair Value Measurement at 2021 2020 ($ in thousands) Balance - January 1, $ - $ - Acquisitions 6,500 1,000 Change in fair value - - Payments - - Balance - June 30, $ 6,500 $ 1,000

SEGMENT REPORTING

SEGMENT REPORTING	6 Months Ended
	Jun. 30, 2021
Segment Reporting [Abstract]
SEGMENT REPORTING	15. SEGMENT REPORTING Both our Chief Executive Officer and Executive Chairman serve as the Chief Operating Decision Maker (“CODM”), organize the Company, manage resource allocations and measure performance among two The Healthcare IT segment includes revenue cycle management, SaaS solutions and other services. The Medical Practice Management segment includes the management of three medical practices. Each segment is considered a reporting unit. The CODM evaluates financial performance of the business units on the basis of revenue and direct operating costs excluding unallocated amounts, which are mainly corporate overhead costs. Our CODM does not evaluate operating segments using asset or liability information. The accounting policies of the segments are the same as those disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC on February 25, 2021. The following tables present revenues, operating expenses and operating (loss) income by reportable segment: SCHEDULE OF REVENUES, OPERATING EXPENSES AND OPERATING INCOME (LOSS) BY REPORTABLE SEGMENT Six Months Ended June 30, 2021 ($ in thousands) Healthcare IT M edical Practice Unallocated Expenses Total Net revenue $ 58,119 $ 5,715 $ - $ 63,834 Operating expenses: Direct operating costs 34,149 4,446 - 38,595 Selling and marketing 4,079 15 - 4,094 General and administrative 6,839 1,016 4,038 11,893 Research and development 3,839 - - 3,839 Depreciation and amortization 5,792 167 - 5,959 Impairment and unoccupied lease charges 1,241 - - 1,241 Total operating expenses 55,939 5,644 4,038 65,621 Operating (loss) income $ 2,180 $ 71 $ (4,038 ) $ (1,787 ) Three Months Ended June 30, 2021 ($ in thousands) Healthcare IT Medical Unallocated Total Net revenue $ 31,085 $ 2,980 $ - $ 34,065 Operating expenses: Direct operating costs 18,161 2,373 - 20,534 Selling and marketing 2,197 7 - 2,204 General and administrative 3,411 497 2,361 6,269 Research and development 1,813 - - 1,813 Depreciation and amortization 3,043 85 - 3,128 Impairment and unoccupied lease charges 223 - - 223 Total operating expenses 28,848 2,962 2,361 34,171 Operating (loss) income $ 2,237 $ 18 $ (2,361 ) $ (106 ) Six Months Ended June 30, 2020 ($ in thousands) Healthcare IT Medical Unallocated Corporate Expenses Total Net revenue $ 35,967 $ 5,479 $ - $ 41,446 Operating expenses: Direct operating costs 21,927 4,196 - 26,123 Selling and marketing 3,189 17 - 3,206 General and administrative 6,894 1,025 3,067 10,986 Research and development 4,479 - - 4,479 Depreciation and amortization 3,579 159 - 3,738 Impairment charges 361 - - 361 Total operating expenses 40,429 5,397 3,067 48,893 Operating (loss) income $ (4,462 ) $ 82 $ (3,067 ) $ (7,447 ) Three Months Ended June 30, 2020 ($ in thousands) Healthcare IT M edical Unallocated Corporate Expenses Total Net revenue $ 17,126 $ 2,453 $ - $ 19,579 Operating expenses: Direct operating costs 10,761 1,796 - 12,557 Selling and marketing 1,617 8 - 1,625 General and administrative 3,014 468 1,911 5,393 Research and development 2,146 - - 2,146 Depreciation and amortization 2,325 80 - 2,405 Impairment charges 63 - - 63 Total operating expenses 19,926 2,352 1,911 24,189 Operating (loss) income $ (2,800 ) $ 101 $ (1,911 ) $ (4,610 ) The following is a discussion of our condensed consolidated financial condition and results of operations for the three and six months ended June 30, 2021 and 2020, and other factors that are expected to affect our prospective financial condition. The following discussion and analysis should be read together with our Condensed Consolidated Financial Statements and related notes beginning on page 4 of this Quarterly Report on Form 10-Q. Some of the statements set forth in this section are forward-looking statements relating to our future results of operations. Our actual results may vary from the results anticipated by these statements. Please see “ Forward-Looking Statements COVID-19 Pandemic In December 2019, a novel strain of coronavirus, SARS-CoV-2, was reported to have surfaced in Wuhan, China. Since then, SARS-CoV-2, and the resulting disease COVID-19, has spread to most countries, and all 50 states within the United States. In March 2020, the World Health Organization declared the COVID-19 outbreak a pandemic. Further, the former President of the United States declared the COVID-19 pandemic a national emergency, invoking powers under the Stafford Act, the legislation that directs federal emergency disaster response, and under the Defense Production Act, the legislation that facilitates the production of goods and services necessary for national security and for other purposes. Numerous governmental jurisdictions, including the State of New Jersey where we maintain our principal executive offices, and those in which many of our U.S. and international offices are based, have imposed, and others in the future may impose, “shelter-in-place” orders, quarantines, executive orders and similar government orders and restrictions for their residents to control the spread of COVID-19. Most states and the federal government, including the State of New Jersey, together with foreign jurisdictions in which we have operations centers, have declared a state of emergency related to the spread of COVID-19. While the COVID-19 pandemic did not materially adversely affect the Company’s consolidated financial results and operations during the six months ended June 30, 2021, economic and health conditions in the United States and across most of the globe continue to change. The Company has expanded its telehealth operations, which is an alternative to office visits. However, not all physicians are using telehealth and not to the same extent as previous office visits. The COVID-19 pandemic is affecting the Company’s operations in 2021, and may continue to do so indefinitely thereafter. The pandemic may have an impact on the Company’s business, operations, and financial results and conditions, directly and indirectly, including, without limitation, impacts on the health of the Company’s management and employees, its operations, marketing and sales activities, and on the overall economy. The spread of the virus did not adversely affect the health and availability of our employees and staff. The scope and nature of these impacts, most of which are beyond the Company’s control, continue to evolve and the outcomes are uncertain. Due to the above circumstances and as described generally in this Quarterly Report on Form 10-Q, the Company’s consolidated results of operations for the three and six months ended June 30, 2021 are not necessarily indicative of the results to be expected for the full fiscal year. The Company is not aware of any certain event or circumstance that would require an update to its estimates or judgements or a revision of the carrying value of its assets or liabilities as of the date of issuance of this Quarterly Report on Form 10-Q. These estimates could change in the future as new information about future developments is obtained. Management cannot predict the full impact of the COVID-19 pandemic on the Company’s consolidated operations nor on economic conditions generally, including the effects on patient visits. The ultimate extent of the effects of the COVID-19 pandemic on the Company is highly uncertain and will depend on highly unpredictable factors such as the ultimate geographic spread of the disease, the severity of the disease, the duration of outbreak, and the effectiveness of any further developments globally and nationally. The Company will actively monitor the situation and take further action that is in the best interest of our employees, customers, partners, and stockholders. Overview CareCloud, Inc. (“CareCloud” and together with its consolidated subsidiaries, the “Company”, “we”, “us” and/or “our”) is a healthcare information technology company that provides a full suite of proprietary cloud-based solutions, together with related business services, to healthcare providers and hospitals throughout the United States. Our Software-as-a-Service (“SaaS”) platform includes revenue cycle management (“RCM”), practice management (“PM”), electronic health record (“EHR”), business intelligence, telehealth, patient experience management (“PXM”) solutions and complementary software tools and business services for high-performance medical groups and health systems. At a high level, these solutions can be categorized as follows: ● Technology-enabled business solutions, which are often bundled but are occasionally provided individually, including: ○ EHRs, which are easy to use, integrated with our business services or offered as Software-as-a-Service (“SaaS”) solutions, and allow our healthcare provider clients to deliver better patient care, document their clinical visits effectively and thus potentially qualify for government incentives, reduce documentation errors and reduce paperwork; PM software and related tools, which support our clients’ day-to-day business operations and workflows; Mobile Health (“mHealth”) solutions, including smartphone applications that assist patients and healthcare providers in the provision of healthcare services; Telehealth solutions, which allow healthcare providers to conduct remote patient visits; Healthcare claims clearinghouse, which enables our clients to electronically scrub and submit claims to, and process payments from, insurance companies; ○ Business intelligence, customized applications, interfaces and a variety of other technology solutions that support our healthcare clients; and RCM services, which include end-to-end medical billing, eligibility, analytics, and related services, all of which can often be provided either with our technology platform or through a third-party system. ● Professional services consisting of application and advisory services, revenue cycle services, data analytic services and educational training services. Medical practice management services are provided to medical practices. In this service model, we provide the medical practice with appropriate facilities, equipment, supplies, support services, nurses and administrative support staff. We also provide management, bill-paying and financial advisory services. Our solutions enable clients to increase financial and operational performance, streamline clinical workflows, get better insight through data, and make better business and clinical decisions, resulting in improvement in patient care and collections while reducing administrative burdens and operating costs. The modernization of the healthcare industry is transforming nearly every aspect of a healthcare organization from policy to providers; clinical care to member services, devices to data, and ultimately the quality of the patient’s experience as a healthcare consumer. We create elegant, user-friendly applications that solve many of the challenges facing healthcare organizations. We partner with organizations to develop customized, best-in-class solutions to solve their specific challenges while ensuring they also meet future regulatory and organizational requirements and market demands. We are able to deliver our industry-leading solutions at very competitive prices because we leverage a combination of our proprietary software, which automates our workflows and increases efficiency, together with our team of approximately 700 experienced health industry experts throughout the United States. These experts are supported by our highly educated and specialized offshore workforce of approximately 3,300 team members at labor costs that we believe are approximately one-tenth the cost of comparable U.S. employees. Our u CareCloud Adoption of our technology-enabled business solutions typically requires little or no upfront expenditure by a client. Additionally, for most of our solutions and customers, our financial performance is linked directly to the financial performance of our clients, as the vast majority of our revenues are based on a percentage of our clients’ collections. The fees we charge for our complete, integrated, end-to-end solution are very competitive and among the lowest in the industry. We estimate that we currently provide services to more than 40,000 providers, (which we define as physicians, nurses, nurse practitioners, physician assistants and other clinical staff that render bills for their services) practicing in approximately 2,600 independent medical practices and hospitals representing 80 specialties and subspecialties in 50 states. In addition, we serve approximately 200 clients which are not medical practices, but are primarily service organizations who serve the healthcare community. The foregoing numbers include clients leveraging any of our products or services, and are based, in part, upon estimates where the precise number of practices or providers is unknown We service clients ranging from small practices, consisting of one to ten providers, to large practices with over 2,000 providers operating in multiple states, to community hospitals. On January 8, 2020, through a merger with a subsidiary, the Company acquired CareCloud Corporation, a Delaware corporation which was subsequently renamed CareCloud Health, Inc (“CCH”), which has developed a highly acclaimed cloud-based platform including EHR, PM and patient experience capabilities. The Company paid $11.9 million in cash, assumed a working capital deficiency of approximately $5.1 million and issued 760,000 shares of the Company’s Series A Preferred Stock and two million warrants for the purchase of the Company’s common stock at prices of $7.50 for two years and $10.00 per share for three years. On June 16, 2020, the Company purchased all of the issued and outstanding capital stock of Meridian Billing Management Co. and its affiliate Origin Holdings, Inc. (collectively “Meridian” and sometimes referred to as “Meridian Medical Management”), a former GE Healthcare IT company that delivers advanced healthcare information technology solutions and services. The Company paid $11.9 million in cash, issued 200,000 shares of the Company’s Series A Preferred Stock and warrants to purchase 2,250,000 of the Company’s common stock with an exercise price per share of $7.50 for two years and assumed Meridian’s negative working capital and certain long-term lease liabilities where the space is either not being utilized or will be vacated shortly, with an aggregate value of approximately $4.8 million. On June 1, 2021, CareCloud Acquisition Corp (“CAC”), a wholly-owned subsidiary entered into an Asset and Stock Purchase Agreement (the “Purchase Agreement”) with MedMatica Consulting Associates, Inc., (“MedMatica”) whereby CAC purchased the assets of MedMatica and the stock of its wholly-owned subsidiary Santa Rosa Staffing, Inc. (“SRS”). MedMatica and SRS provide a broad range of specialty consulting services to hospitals and large healthcare groups, including certain consulting services related to healthcare IT applications services and implementations, practice management, and revenue cycle management. The total consideration paid at closing was $10 million in cash, net of $1.5 million of escrow withheld. A working capital adjustment of approximately $3.8 million was also paid at closing. The Purchase Agreement provides that if during the 18-month period commencing on June 1, 2021 (“the “Earn-Out Period”), CAC’s EBITDA and revenue targets are achieved, then CAC shall pay an earn-out up to a maximum of $8 million (the “Base Earn-Out”). If during the Earn-Out Period, CAC’s additional and increased EBITDA and revenue targets are achieved, then CAC shall pay an additional earn-out, up to a maximum of $5 million (the “Additional Earn-Out”, collectively, with the Base Earn-Out, the “Earn-Out”). CAC will have the right to offset the Earn-Out against any claim for which CAC is entitled to indemnification under the Purchase Agreement and against damages for breaches by the seller of the non-competition and non-solicitation provisions in the Purchase Agreement. Our offshore operations in the Pakistan Offices and Sri Lanka accounted for approximately 11% of total expenses for both the six months ended June 30, 2021 and 2020. A significant portion of those foreign expenses were personnel-related costs (approximately 80% for both the six months ended June 30, 2021 and 2020). Because personnel-related costs are significantly lower in Pakistan and Sri Lanka Key Performance Measures We consider numerous factors in assessing our performance. Key performance measures used by management, including adjusted EBITDA, adjusted operating income, adjusted operating margin, adjusted net income and adjusted net income per share, are non-GAAP financial measures, which we believe better enable management and investors to analyze and compare the underlying business results from period to period. These non-GAAP financial measures should not be considered in isolation, or as a substitute for or superior to, financial measures calculated in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Moreover, these non-GAAP financial measures have limitations in that they do not reflect all the items associated with the operations of our business as determined in accordance with GAAP. We compensate for these limitations by analyzing current and future results on a GAAP basis as well as a non-GAAP basis, and we provide reconciliations from the most directly comparable GAAP financial measures to the non-GAAP financial measures. Our non-GAAP financial measures may not be comparable to similarly titled measures of other companies. Other companies, including companies in our industry, may calculate similarly titled non-GAAP financial measures differently than we do, limiting the usefulness of those measures for comparative purposes. Adjusted EBITDA, adjusted operating income, adjusted operating margin, adjusted net income and adjusted net income per share provide an alternative view of performance used by management and we believe that an investor’s understanding of our performance is enhanced by disclosing these adjusted performance measures. Adjusted EBITDA excludes the following elements which are included in GAAP net income (loss): ● Income tax expense (benefit) or the cash requirements to pay our taxes; Interest expense, or the cash requirements necessary to service interest on principal payments, on our debt; ● Foreign currency gains and losses and other non-operating expenditures; ● Stock-based compensation expense includes cash-settled awards and the related taxes, based on changes in the stock price; ● Depreciation and amortization charges; ● Integration costs, such as severance amounts paid to employees from acquired businesses, and transaction costs, such as brokerage fees, pre-acquisition accounting costs and legal fees and exit costs related to contractual agreements; and ● Impairment and unoccupied lease charges. Set forth below is a presentation of our adjusted EBITDA for the three and six months ended June 30, 2021 and 2020: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 ($ in thousands) Net revenue $ 34,065 $ 19,579 $ 63,834 $ 41,446 GAAP net loss (227 ) (4,792 ) (2,191 ) (7,294 ) Provision (benefit) for income taxes 213 (74 ) 212 (44 ) Net interest expense 113 142 177 222 Foreign exchange loss / other expense (146 ) 111 97 (313 ) Stock-based compensation expense 1,735 1,881 3,002 3,188 Depreciation and amortization 3,128 2,405 5,959 3,738 Transaction and integration costs 617 455 849 1,100 Impairment and unoccupied lease charges 223 63 1,241 361 Adjusted EBITDA $ 5,656 $ 191 $ 9,346 $ 958 Adjusted operating income and adjusted operating margin exclude the following elements which are included in GAAP operating income (loss): ● Stock-based compensation expense includes cash-settled awards and the related taxes, based on changes in the stock price; ● Amortization of purchased intangible assets; Integration costs, such as severance amounts paid to employees from acquired businesses, and transaction costs, such as brokerage fees, pre-acquisition accounting costs and legal fees and exit costs related to contractual agreements; and ● Impairment and unoccupied lease charges. Set forth below is a presentation of our adjusted operating income and adjusted operating margin, which represents adjusted operating income as a percentage of net revenue, for the three and six months ended June 30, 2021 and 2020: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 ($ in thousands) Net revenue $ 34,065 $ 19,579 $ 63,834 $ 41,446 GAAP net loss (227 ) (4,792 ) (2,191 ) (7,294 ) Provision (benefit) for income taxes 213 (74 ) 212 (44 ) Net interest expense 113 142 177 222 Other expense (income) - net (205 ) 114 15 (331 ) GAAP operating loss (106 ) (4,610 ) (1,787 ) (7,447 ) GAAP operating margin (0.3 )% (23.5 )% (2.8 )% (18.0 )% Stock-based compensation expense 1,735 1,881 3,002 3,188 Amortization of purchased intangible assets 2,175 2,046 4,311 3,061 Transaction and integration costs 617 455 849 1,100 Impairment and unoccupied lease charges 223 63 1,241 361 Non-GAAP adjusted operating income $ 4,644 $ (165 ) $ 7,616 $ 263 Non-GAAP adjusted operating margin 13.6 % (0.8 )% 11.9 % 0.6 % Adjusted net income and adjusted net income per share exclude the following elements which are included in GAAP net income (loss): ● Foreign currency gains and losses and other non-operating expenditures; Stock-based compensation expense includes cash-settled awards and the related taxes, based on changes in the stock price; ● Amortization of purchased intangible assets; Integration costs, such as severance amounts paid to employees from acquired businesses, and transaction costs, such as brokerage fees, pre-acquisition accounting costs and legal fees and exit costs related to contractual agreements; ● Impairment and unoccupied lease charges; and ● Income tax expense (benefit) resulting from the amortization of goodwill related to our acquisitions. No tax effect has been provided in computing non-GAAP adjusted net income and non-GAAP adjusted net income per share as the Company has sufficient carry forward net operating losses to offset the applicable income taxes. The following table shows our reconciliation of GAAP net loss to non-GAAP adjusted net income for the three and six months ended June 30, 2021 and 2020: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 ($ in thousands) GAAP net loss $ (227 ) $ (4,792 ) $ (2,191 ) $ (7,294 ) Foreign exchange loss / other expense (146 ) 111 97 (313 ) Stock-based compensation expense 1,735 1,881 3,002 3,188 Amortization of purchased intangible assets 2,175 2,046 4,311 3,061 Transaction and integration costs 617 455 849 1,100 Impairment and unoccupied lease charges 223 63 1,241 361 Income tax expense (benefit) related to goodwill 163 (115 ) 127 (100 ) Non-GAAP adjusted net income $ 4,540 $ (351 ) $ 7,436 $ 3 Set forth below is a reconciliation of our GAAP net loss attributable to common shareholders, per share to our non-GAAP adjusted net income per share: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 GAAP net loss attributable to common shareholders, per share $ (0.27 ) $ (0.65 ) $ (0.63 ) $ (1.07 ) Impact of preferred stock dividend 0.25 0.27 0.48 0.48 Net loss per end-of-period share (0.02 ) (0.38 ) (0.15 ) (0.59 ) Foreign exchange loss / other expense (0.01 ) 0.01 0.01 (0.03 ) Stock-based compensation expense 0.12 0.15 0.21 0.26 Amortization of purchased intangible assets 0.15 0.15 0.30 0.25 Transaction and integration costs 0.04 0.04 0.06 0.09 Impairment and unoccupied lease charges 0.02 0.01 0.07 0.03 Income tax expense (benefit) related to goodwill 0.01 (0.01 ) 0.01 (0.01 ) Non-GAAP adjusted earnings per share $ 0.31 $ (0.03 ) $ 0.51 $ 0.00 End-of-period common shares 14,611,606 12,454,691 14,611,606 12,454,691 In-the-money warrants and outstanding unvested RSUs 2,628,747 4,295,561 2,628,747 4,295,561 Total fully diluted shares 17,240,353 16,750,252 17,240,353 16,750,252 Non-GAAP adjusted diluted earnings per share $ 0.26 $ (0.02 ) $ 0.43 $ 0.00 For purposes of determining non-GAAP adjusted earnings per share, the Company used the number of common shares outstanding at the end of June 30, 2021 and 2020. Non-GAAP adjusted diluted earnings per share was computed using an as-converted method and includes warrants that are in-the-money as of that date as well as outstanding unvested RSUs. Non-GAAP adjusted earnings per share and non-GAAP adjusted diluted earnings per share do not take into account dividends paid on Preferred Stock. No tax effect has been provided in computing non-GAAP adjusted earnings per share and non-GAAP adjusted diluted earnings per share as the Company has sufficient carry forward net operating losses to offset the applicable income taxes. Key Metrics In addition to the line items in our condensed consolidated financial statements, we regularly review the following metrics. We believe information on these metrics is useful for investors to understand the underlying trends in our business. Providers and Practices Served: Sources of Revenue Revenue: These solutions accounted for approximately 80% and 83% of our revenues during the three months ended June 30, 2021 and 2020, respectively, and 83% and 82% for the six months ended June 30, 2021 and 2020, respectively. Other Healthcare IT services, including printing and mailing operations, group purchasing and professional services, represented approximately 12% and 5% of revenues for the three months ended June 30, 2021 and 2020, respectively, and 8% and 5% for the six months ended June 30, 2021 and 2020, respectively. We earned approximately 8% and 12% of our revenue from medical practice management services during the three months ended June 30, 2021 and 2020, respectively, and 9% and 13% for the six months ended June 30, 2021 and 2020, respectively . This revenue represents fees based on our actual costs plus a percentage of the operating profit and is reported in our Medical Practice Management segment. Operating Expenses Direct Operating Costs. Selling and Marketing Expense. General and Administrative Expense. Research and Development Expense. Contingent Consideration. Depreciation and Amortization Expense. Depreciation expense is charged using the straight-line method over the estimated lives of the assets ranging from three to five years. Amortization expense is charged on either an accelerated or on a straight-line basis over a period of three or four years for most intangible assets acquired in connection with acquisitions including those intangibles related to the group purchasing services. Amortization expense related to the value of our medical practice management clients basis over a period of twelve years. Impairment and Unoccupied Lease Charges. Unoccupied lease charges represent the portion of lease and related costs for vacant space not being utilized by the Company. The Company is marketing both the unused facility and the unused space for sub-lease. Interest and Other Income (Expense). Income Tax. Critical Accounting Policies and Estimates The critical accounting policies and estimates used in the preparation of our condensed consolidated financial statements that we believe affect our more significant judgments and estimates used in the preparation of our condensed consolidated financial statements presented in this Report are described in Management’s Discussion and Analysis of Financial Condition and Results of Operations and in the Notes to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2020. Leases: We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, operating lease liability (current portion) and operating lease liability (noncurrent portion) in the condensed consolidated balance sheets at June 30, 2021 and December 31, 2020. The Company does not have any finance leases. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. We use our estimated incremental borrowing rates, which are derived from information available at the lease commencement date, in determining the present value of lease payments. We give consideration to bank financing arrangements, geographical location and collateralization of assets when calculating our incremental borrowing rates. Our lease term includes options to extend the lease when it is reasonably certain that we will exercise that option. Leases with a term of less than 12 months are not recorded in the condensed consolidated balance sheet. Our lease agreements do not contain any residual value guarantees. For real estate leases, we account for the leased and non-leased components as a single lease component. Some leases include escalation clauses and termination options that are factored into the determination of the future lease payments when appropriate. Capitalized software costs We capitalized costs incurred during the application development stage related to our internal use software. Costs incurred during the application development phase are capitalized only when we believe it is probable that the development will result in new or additional functionality. The types of costs capitalized during the application development phase consist of employee compensation, employee benefits and employee stock- based compensation. Costs related to the preliminary project stage and post-implementation activities are expensed as incurred. Capitalized internal-use software is amortized on a straight-line basis over its estimated useful life when the asset has been placed in service for general availability. Significant judgments related to internally-developed software include determining whether it is probable that projects will result in new or additional functionality; concluding on when the application development phase starts and ends; and deciding which costs, especially employee compensation costs, should be capitalized. Additionally, there is judgment applied to the useful lives of capitalized software; we have concluded that the useful lives for capitalized internally-developed software is three years. Company management employs its best estimates and assumptions in determining the appropriateness of the judgments noted above on a project-by-project basis during initial capitalization as well as subsequent measurement. While we believe that our approach to estimates and judgments is reasonable, actual results could differ, and such differences could lead to an increase or decrease in expense. As of June 30, 2021 and December 31, 2020, the carrying amounts of internally-developed capitalized software was $8.2 million There have been no material changes in our critical accounting policies and estimates from those described in the Management’s Discussion and Analysis of Financial Condition and Results of Operations, included in our Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on February 25, 2021. Results of Operations The following table sets forth our consolidated results of operations as a percentage of total revenue for the periods shown: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Net revenue 100.0 % 100.0 % 100.0 % 100.0 % Operating expenses: Direct operating costs 60.3 % 64.1 % 60.5 % 63.0 % Selling and marketing 6.5 % 8.3 % 6.4 % 7.7 % General and administrative 18.4 % 27.5 % 18.6 % 26.5 % Research and development 5.3 % 11.0 % 6.0 % 10.8 % Depreciation and amortization 9.2 % 12.3 % 9.3 % 9.0 % Impairment and unoccupied lease charges 0.7 % 0.3 % 1.9 % 0.9 % Total operating expenses 100.4 % 123.5 % 102.7 % 117.9 % Operating loss (0.4 )% (23.5 )% (2.7 )% (17.9 )% Interest expense - net 0.3 % 0.7 % 0.3 % 0.5 % Other income (expense) - net 0.6 % (0.6 )% (0.0 )% 0.8 % Loss before income taxes (0.1 )% (24.8 )% (3.0 )% (17.6 )% Income tax provision (benefit) 0.6 % (0.4 )% 0.3 % (0.1 )% Net loss (0.7 )% (24.4 )% (3.3 )% (17.5 )% Comparison of the three and six months ended June 30, 2021 and 2020: Three Months Ended June 30, Change Six Months Ended June 30, Change 2021 2021 Amount Percent 2021 2020 Amount Percent ($ in thousands) Net revenue $ 34,065 $ 19,579 $ 14

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	6 Months Ended
	Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements On February 14, 2018, the FASB issued ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In June 2018, the FASB issued ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40). In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments.

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	6 Months Ended
	Jun. 30, 2021
Asset Acquisition [Line Items]
SCHEDULE OF BUSINESS ACQUISITION, PRO FORMA INFORMATION	SCHEDULE OF BUSINESS ACQUISITION, PRO FORMA INFORMATION 2021 2020 2021 2020 Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 ($ in thousands except per share amounts) Total revenue $ 42,170 $ 29,997 $ 81,625 $ 66,267 Net income (loss) $ 193 $ (7,403 ) $ (618 ) $ (11,619 ) Net loss attributable to common shareholders $ (3,445 ) $ (10,772 ) $ (7,384 ) $ (18,246 ) Net loss per common share $ (0.24 ) $ (0.87 ) $ (0.52 ) $ (1.48 )
Acqisition 2021 [Member] | Meridian Billing Management Co [Member]
Asset Acquisition [Line Items]
SUMMARY OF TOTAL CONSIDERATION ON BUSINESS CONSIDERATION	A summary of the total consideration is as follows: SUMMARY OF TOTAL CONSIDERATION ON BUSINESS CONSIDERATION medSR Purchase Price ($ in thousands) Cash $ 12,261 Amounts held in escrow 1,571 Contingent consideration 6,500 - - Total purchase price $ 20,332
SCHEDULE OF ASSETS ACQUIRED AND LIABILITIES ASSUMED	The preliminary purchase price allocation for medSR is summarized as follows: SCHEDULE OF ASSETS ACQUIRED AND LIABILITIES ASSUMED ($ in thousands) Accounts receivable $ 2,705 Receivable from seller 108 Prepaid expenses 138 Contract asset 2,402 Property and equipment 94 Operating lease right-of-use assets - Customer relationships 4,500 Technology - Acquired backlog 500 Trademark - Software - Goodwill 11,406 Other long term assets - Accounts payable (505 ) Accrued expenses & compensation (996 ) Current loan payable - Operating lease liabilities - Other current liabilities - Deferred revenue (20 ) Total preliminary purchase price allocation $ 20,332
Acqisition 2020 [Member] | Meridian Billing Management Co [Member]
Asset Acquisition [Line Items]
SUMMARY OF TOTAL CONSIDERATION ON BUSINESS CONSIDERATION	A summary of the total consideration is as follows: SUMMARY OF TOTAL CONSIDERATION ON BUSINESS CONSIDERATION Meridian Purchase Price ($ in thousands) Cash $ 11,864 Preferred stock 5,000 Warrants 4,770 Total purchase price $ 21,634
SCHEDULE OF ASSETS ACQUIRED AND LIABILITIES ASSUMED	SCHEDULE OF ASSETS ACQUIRED AND LIABILITIES ASSUMED ($ in thousands) Accounts receivable $ 3,558 Prepaid expenses 704 Contract asset 881 Property and equipment 426 Operating lease right-of-use assets 2,776 Customer relationships 12,900 Technology 900 Goodwill 13,789 Accounts payable (3,373 ) Accrued expenses & compensation (3,932 ) Deferred revenue (907 ) Operating lease liabilities (6,025 ) Other current liabilities (63 ) Total purchase price allocation $ 21,634
Acqisition 2020 [Member] | Care Cloud Health Inc [Member]
Asset Acquisition [Line Items]
SUMMARY OF TOTAL CONSIDERATION ON BUSINESS CONSIDERATION	A summary of the total consideration is as follows: SUMMARY OF TOTAL CONSIDERATION ON BUSINESS CONSIDERATION CCH Purchase Price ($ in thousands) Cash $ 11,853 Preferred stock 19,000 Warrants 300 Contingent consideration 1,000 Total purchase price $ 32,153
SCHEDULE OF ASSETS ACQUIRED AND LIABILITIES ASSUMED	SCHEDULE OF ASSETS ACQUIRED AND LIABILITIES ASSUMED ($ in thousands) Accounts receivable $ 2,299 Prepaid expenses 1,278 Contract asset 538 Property and equipment 403 Operating lease right-of-use assets 2,859 Customer relationships 8,000 Trademark 800 Software 4,800 Goodwill 22,868 Other long term assets 540 Accounts payable (6,943 ) Accrued expenses (2,081 ) Current loan payable (80 ) Operating lease liabilities (2,859 ) Deferred revenue (269 ) Total purchase price allocation $ 32,153

GOODWILL AND INTANGIBLE ASSET_2

GOODWILL AND INTANGIBLE ASSETS - NET (Tables)	6 Months Ended
	Jun. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
SCHEDULE OF INTANGIBLE ASSETS AND GOODWILL	SCHEDULE OF INTANGIBLE ASSETS AND GOODWILL Six Months Ended Year Ended June 30, 2021 December 31, 2020 ($ in thousands) Beginning gross balance $ 49,291 $ 12,634 Acquisitions 11,370 36,657 Ending gross balance $ 60,661 $ 49,291
SCHEDULE OF FINITE-LIVED INTANGIBLE ASSETS	SCHEDULE OF FINITE-LIVED INTANGIBLE ASSETS June 30, 2021 December 31, 2020 ($ in thousands) Contracts and relationships acquired $ 48,997 $ 44,497 Capitalized software 9,014 5,760 Non-compete agreements 1,236 1,236 Other intangible assets 8,412 7,906 Total intangible assets 67,659 59,399 Less: Accumulated amortization 34,392 29,421 Intangible assets - net $ 33,267 $ 29,978
SCHEDULE OF FINITE-LIVED INTANGIBLE ASSETS, FUTURE AMORTIZATION EXPENSE	As of June 30, 2021, future amortization scheduled to be expensed is as follows: SCHEDULE OF FINITE-LIVED INTANGIBLE ASSETS, FUTURE AMORTIZATION EXPENSE Years ending December 31, ($ in thousands) 2021 (six months) $ 6,730 2022 11,941 2023 8,915 2024 4,031 2025 300 Thereafter 1,350 Total $ 33,267

NET LOSS PER COMMON SHARE (Tabl

NET LOSS PER COMMON SHARE (Tables)	6 Months Ended
	Jun. 30, 2021
Earnings Per Share [Abstract]
SCHEDULE OF LOSSES PER SHARE, BASIC AND DILUTED	The following table reconciles the weighted-average shares outstanding for basic and diluted net loss per share for the three and six months ended June 30, 2021 and 2020: SCHEDULE OF LOSSES PER SHARE, BASIC AND DILUTED 2021 2020 2021 2020 Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 ($ in thousands, except share and per share amounts) Basic and Diluted: Net loss attributable to common shareholders $ (3,865 ) $ (8,069 ) $ (8,958 ) $ (13,214 ) Weighted-average common shares used to compute basic and diluted loss per share 14,430,882 12,395,197 14,258,772 12,353,007 Net loss attributable to common shareholders per share - Basic and Diluted $ (0.27 ) $ (0.65 ) $ (0.63 ) $ (1.07 )

LEASES (Tables)

LEASES (Tables)	6 Months Ended
	Jun. 30, 2021
Leases
SCHEDULE OF LEASE EXPENSE	The components of lease expense were as follows: SCHEDULE OF LEASE EXPENSE 2021 2020 2021 2020 Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 ($ in thousands) Operating lease cost $ 1,058 $ 835 $ 2,115 $ 1,634 Short-term lease cost 22 1 44 10 Variable lease cost 8 2 14 16 Total- net lease cost $ 1,088 $ 838 $ 2,173 $ 1,660
SCHEDULE OF SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO LEASES	Supplemental balance sheet information related to leases was as follows: SCHEDULE OF SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO LEASES June 30, 2021 December 31, 2020 ($ in thousands) Operating leases: Operating lease ROU assets, net $ 7,712 $ 7,743 Current operating lease liabilities $ 4,098 $ 4,729 Non-current operating lease liabilities 5,727 6,297 Total operating lease liabilities $ 9,825 $ 11,026 Operating leases: ROU assets $ 9,163 $ 10,648 Asset lease expense (1,455 ) (2,889 ) Foreign exchange gain (loss) 4 (16 ) ROU assets, net $ 7,712 $ 7,743 Weighted average remaining lease term (in years): Operating leases 4.39 2.71 Weighted average discount rate: Operating leases 6.79 % 6.76 %
SCHEDULE OF SUPPLEMENTAL CASH FLOW AND OTHER INFORMATION RELATED TO LEASES	Supplemental cash flow and other information related to leases was as follows: SCHEDULE OF SUPPLEMENTAL CASH FLOW AND OTHER INFORMATION RELATED TO LEASES 2021 2020 2021 2020 Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 ($ in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,336 $ 764 $ 2,732 $ 1,443 ROU assets obtained in exchange for lease liabilities: Operating leases, net of impairment and terminations $ 1,537 $ 2,647 $ 1,748 $ 6,264
SCHEDULE OF MATURITIES OF LEASE LIABILITIES	Maturities of lease liabilities are as follows: SCHEDULE OF MATURITIES OF LEASE LIABILITIES Operating leases - Year ending December 31, ($ in thousands) 2021 (six months) $ 2,474 2022 4,047 2023 1,931 2024 739 2025 481 Thereafter 1,972 Total lease payments 11,644 Less: imputed interest (1,819 ) Total lease obligations 9,825 Less: current obligations (4,098 ) Long-term lease obligations $ 5,727

REVENUE (Tables)

REVENUE (Tables)	6 Months Ended
	Jun. 30, 2021
Revenue from Contract with Customer [Abstract]
SCHEDULE OF DISAGGREGATION OF REVENUE	The following table represents a disaggregation of revenue for the three months and six months ended June 30: SCHEDULE OF DISAGGREGATION OF REVENUE Three Months Ended Six Months Ended June 30, 2021 2020 2021 2020 ($ in thousands) Healthcare IT: Technology-enabled business solutions $ 27,145 $ 16,215 $ 52,990 $ 34,059 Professional services 3,497 398 4,114 789 Printing and mailing services 272 324 656 753 Group purchasing services 171 189 359 366 Medical Practice Management: Medical practice management services 2,980 2,453 5,715 5,479 Total $ 34,065 $ 19,579 $ 63,834 $ 41,446
SCHEDULE OF ACCOUNTS RECEIVABLE, CONTRACT ASSET AND DEFERRED REVENUE	SCHEDULE OF ACCOUNTS RECEIVABLE, CONTRACT ASSET AND DEFERRED REVENUE Accounts Receivable, Net Contract Asset Deferred Revenue (current) Deferred Revenue ($ in thousands) Balance as of January 1, 2021 $ 12,089 $ 4,105 $ 1,173 $ 305 medSR acquisition 2,705 2,402 20 - Increase (decrease), net 1,430 (1,037 ) (12 ) (121 ) Balance as of June 30, 2021 $ 16,224 $ 5,470 $ 1,181 $ 184 Balance as of January 1, 2020 $ 6,995 $ 2,385 $ 20 $ 19 CCH acquisition 2,299 538 - 269 Meridian acquisition 3,800 881 907 - (Decrease) increase, net (1,888 ) (376 ) 82 (81 ) Balance as of June 30, 2020 $ 11,206 $ 3,428 $ 1,009 $ 207

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 30, 2021
Share-based Payment Arrangement [Abstract]
DISCLOSURE OF SHARE-BASED COMPENSATION ARRANGEMENTS BY SHARE-BASED PAYMENT AWARD	The following table summarizes the RSU transactions related to the common and preferred stock under the Equity Incentive Plan for the six months ended June 30, 2021 and 2020: DISCLOSURE OF SHARE-BASED COMPENSATION ARRANGEMENTS BY SHARE-BASED PAYMENT AWARD Common Stock Preferred Stock Outstanding and unvested shares at January 1, 2021 382,435 44,000 Granted 419,159 42,166 Vested (294,575 ) (52,166 ) Forfeited (30,412 ) - Outstanding and unvested shares at June 30, 2021 476,607 34,000 Outstanding and unvested shares at January 1, 2020 451,085 44,000 Granted 618,879 44,000 Vested (326,996 ) (44,000 ) Forfeited (50,896 ) - Outstanding and unvested shares at June 30, 2020 692,072 44,000
SCHEDULE OF EMPLOYEE SERVICE SHARE-BASED COMPENSATION, ALLOCATION OF RECOGNIZED PERIOD COSTS	The following table summarizes the components of share-based compensation expense for the three months and six months ended June 30, 2021 and 2020: SCHEDULE OF EMPLOYEE SERVICE SHARE-BASED COMPENSATION, ALLOCATION OF RECOGNIZED PERIOD COSTS Stock-based compensation included in the condensed Three Months Ended June 30, Six Months Ended June 30, consolidated statements of operations: 2021 2020 2021 2020 ($ in thousands) Direct operating costs $ 254 $ 259 $ 559 $ 429 General and administrative 1,120 1,217 1,745 2,069 Research and development 72 178 209 254 Selling and marketing 288 227 489 436 Total stock-based compensation expense $ 1,734 $ 1,881 $ 3,002 $ 3,188

FAIR VALUE OF FINANCIAL INSTR_2

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	6 Months Ended
	Jun. 30, 2021
Fair Value Disclosures [Abstract]
SCHEDULE OF FAIR VALUE, LIABILITIES MEASURED ON RECURRING BASIS, UNOBSERVABLE INPUT RECONCILIATION	The following table provides a reconciliation of the beginning and ending balances for the contingent consideration measured at fair value using significant unobservable inputs (Level 3): SCHEDULE OF FAIR VALUE, LIABILITIES MEASURED ON RECURRING BASIS, UNOBSERVABLE INPUT RECONCILIATION Fair Value Measurement at 2021 2020 ($ in thousands) Balance - January 1, $ - $ - Acquisitions 6,500 1,000 Change in fair value - - Payments - - Balance - June 30, $ 6,500 $ 1,000

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	6 Months Ended
	Jun. 30, 2021
Segment Reporting [Abstract]
SCHEDULE OF REVENUES, OPERATING EXPENSES AND OPERATING INCOME (LOSS) BY REPORTABLE SEGMENT	SCHEDULE OF REVENUES, OPERATING EXPENSES AND OPERATING INCOME (LOSS) BY REPORTABLE SEGMENT Six Months Ended June 30, 2021 ($ in thousands) Healthcare IT M edical Practice Unallocated Expenses Total Net revenue $ 58,119 $ 5,715 $ - $ 63,834 Operating expenses: Direct operating costs 34,149 4,446 - 38,595 Selling and marketing 4,079 15 - 4,094 General and administrative 6,839 1,016 4,038 11,893 Research and development 3,839 - - 3,839 Depreciation and amortization 5,792 167 - 5,959 Impairment and unoccupied lease charges 1,241 - - 1,241 Total operating expenses 55,939 5,644 4,038 65,621 Operating (loss) income $ 2,180 $ 71 $ (4,038 ) $ (1,787 ) Three Months Ended June 30, 2021 ($ in thousands) Healthcare IT Medical Unallocated Total Net revenue $ 31,085 $ 2,980 $ - $ 34,065 Operating expenses: Direct operating costs 18,161 2,373 - 20,534 Selling and marketing 2,197 7 - 2,204 General and administrative 3,411 497 2,361 6,269 Research and development 1,813 - - 1,813 Depreciation and amortization 3,043 85 - 3,128 Impairment and unoccupied lease charges 223 - - 223 Total operating expenses 28,848 2,962 2,361 34,171 Operating (loss) income $ 2,237 $ 18 $ (2,361 ) $ (106 ) Six Months Ended June 30, 2020 ($ in thousands) Healthcare IT Medical Unallocated Corporate Expenses Total Net revenue $ 35,967 $ 5,479 $ - $ 41,446 Operating expenses: Direct operating costs 21,927 4,196 - 26,123 Selling and marketing 3,189 17 - 3,206 General and administrative 6,894 1,025 3,067 10,986 Research and development 4,479 - - 4,479 Depreciation and amortization 3,579 159 - 3,738 Impairment charges 361 - - 361 Total operating expenses 40,429 5,397 3,067 48,893 Operating (loss) income $ (4,462 ) $ 82 $ (3,067 ) $ (7,447 ) Three Months Ended June 30, 2020 ($ in thousands) Healthcare IT M edical Unallocated Corporate Expenses Total Net revenue $ 17,126 $ 2,453 $ - $ 19,579 Operating expenses: Direct operating costs 10,761 1,796 - 12,557 Selling and marketing 1,617 8 - 1,625 General and administrative 3,014 468 1,911 5,393 Research and development 2,146 - - 2,146 Depreciation and amortization 2,325 80 - 2,405 Impairment charges 63 - - 63 Total operating expenses 19,926 2,352 1,911 24,189 Operating (loss) income $ (2,800 ) $ 101 $ (1,911 ) $ (4,610 )

ORGANIZATION AND BUSINESS (Deta

ORGANIZATION AND BUSINESS (Details Narrative) - MTBC Private Limited [Member]	Dec. 31, 2004
OrganizationConsolidationAndPresentationOfFinancialStatementsLineItems [Line Items]
Equity method investment, ownership percentage	99.90%
Founder and Executive Chairman [Member]
OrganizationConsolidationAndPresentationOfFinancialStatementsLineItems [Line Items]
Equity method investment, ownership percentage	0.01%

SUMMARY OF TOTAL CONSIDERATION

SUMMARY OF TOTAL CONSIDERATION ON BUSINESS CONSIDERATION (Details) - USD ($) $ in Thousands	Jun. 01, 2021	Jun. 16, 2020	Jan. 08, 2020
Meridian Acquisition [Member] | Acqisition 2021 [Member]
Business Acquisition [Line Items]
Cash	$ 12,261
Cash	1,571
Cash	6,500
Cash
Cash
Cash	$ 20,332
Meridian Acquisition [Member] | Acqisition 2020 [Member]
Business Acquisition [Line Items]
Cash		$ 11,864
Cash		5,000
Cash		4,770
Cash		$ 21,634
Care Cloud Health Inc [Member] | Acqisition 2020 [Member]
Business Acquisition [Line Items]
Cash			$ 11,853
Cash			1,000
Cash			19,000
Cash			300
Cash			$ 32,153

SCHEDULE OF ASSETS ACQUIRED AND

SCHEDULE OF ASSETS ACQUIRED AND LIABILITIES ASSUMED (Details) - USD ($) $ in Thousands	Jun. 01, 2021	Dec. 31, 2020	Jun. 16, 2020	Jan. 08, 2020
Business Acquisition [Line Items]
Goodwill		$ 49,291
Meridian Acquisition [Member] | Acqisition 2021 [Member]
Business Acquisition [Line Items]
Accounts receivable	$ 2,705
Accounts receivable	108
Prepaid expenses	138
Contract asset	2,402
Property and equipment	94
Operating lease right-of-use assets
Customer relationships	4,500
Technology
Accounts receivable	500
Trademark
Software
Goodwill	11,406
Other long term assets
Accounts payable	(505)
Accrued expenses & compensation	(996)
Current loan payable
Operating lease liabilities
Other current liabilities
Deferred revenue	(20)
Total preliminary purchase price allocation	$ 20,332
Meridian Acquisition [Member] | Acqisition 2020 [Member]
Business Acquisition [Line Items]
Accounts receivable			$ 3,558
Prepaid expenses			704
Contract asset			881
Property and equipment			426
Operating lease right-of-use assets			2,776
Customer relationships			12,900
Technology			900
Goodwill			13,789
Accounts payable			(3,373)
Accrued expenses & compensation			(3,932)
Operating lease liabilities			(6,025)
Other current liabilities			(63)
Deferred revenue			(907)
Total preliminary purchase price allocation			$ 21,634
Care Cloud Health Inc [Member] | Acqisition 2020 [Member]
Business Acquisition [Line Items]
Accounts receivable				$ 2,299
Prepaid expenses				1,278
Contract asset				538
Property and equipment				403
Operating lease right-of-use assets				2,859
Customer relationships				8,000
Trademark				800
Software				4,800
Goodwill				22,868
Other long term assets				540
Accounts payable				(6,943)
Accrued expenses & compensation				(2,081)
Current loan payable				(80)
Operating lease liabilities				(2,859)
Deferred revenue				(269)
Total preliminary purchase price allocation				$ 32,153

SCHEDULE OF BUSINESS ACQUISITIO

SCHEDULE OF BUSINESS ACQUISITION, PRO FORMA INFORMATION (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Business Combination and Asset Acquisition [Abstract]
Total revenue	$ 42,170	$ 29,997	$ 81,625	$ 66,267
Net income (loss)	193	(7,403)	(618)	(11,619)
Net loss attributable to common shareholders	$ (3,445)	$ (10,772)	$ (7,384)	$ (18,246)
Net loss per common share	$ (0.24)	$ (0.87)	$ (0.52)	$ (1.48)

ACQUISITIONS (Details Narrative

ACQUISITIONS (Details Narrative) - USD ($)

Jun. 01, 2021

Jun. 16, 2020

Jan. 08, 2020

Apr. 30, 2021

Jun. 30, 2020

Jun. 30, 2021

Mar. 31, 2021

Jun. 30, 2020

Mar. 31, 2020

Jun. 30, 2021

Jun. 30, 2020

Dec. 31, 2020

Business Acquisition [Line Items]

Consideration payable

Accrued dividends on preferred stock (reversed)

$ 3,638,000

$ 3,128,000

$ 3,277,000

$ 2,643,000

$ 6,767,000

$ 5,920,000

Difference between actual revenue and proforma revenue

42,170,000

29,997,000

81,625,000

66,267,000

Preferred Stock [Member]

Business Acquisition [Line Items]

Accrued dividends on preferred stock (reversed)

Common Stock [Member]

Business Acquisition [Line Items]

Accrued dividends on preferred stock (reversed)

Meridian Acquisition [Member]

Business Acquisition [Line Items]

Business Combination, Separately Recognized Transactions, Revenues and Gains Recognized

$ 2,600,000

9,800,000

18,700,000

1,300,000

Difference between actual revenue and proforma revenue

8,100,000

Care Cloud Health Inc [Member]

Business Acquisition [Line Items]

Business Combination, Separately Recognized Transactions, Revenues and Gains Recognized

$ 8,900,000

$ 7,500,000

17,200,000

$ 15,100,000

Difference between actual revenue and proforma revenue

$ 17,800,000

Asset and Stock Purchase Agreement [Member]

Business Acquisition [Line Items]

Working capital deficiency

3,800,000

Asset and Stock Purchase Agreement [Member] | Maximum [Member]

Business Acquisition [Line Items]

Maximum earn-out payments based upon acheivements

8,000,000

Asset and Stock Purchase Agreement [Member] | Meridian Acquisition [Member]

Business Acquisition [Line Items]

Consideration paid

$ 10,000,000

Revenues earn-out payment, description

The purchase agreement provides that if revenue and EBITDA over the next 18 months exceed certain specified amounts, there will be an earn-out payment to the seller equal to such excess, up to $13 million.

Purchase price allocation and consideration

$ 6,500,000

Purchase price held in escrow

1,500,000

Payment upon revenue and backlog milestones

$ 500,000

Additional shares held in escrow, term

18 months

Consideration payable

$ 12,300,000

Acquired finite lived intangible assets weighted average useful life

3 years

Asset and Stock Purchase Agreement [Member] | Meridian Acquisition [Member] | Maximum [Member]

Business Acquisition [Line Items]

Maximum earn-out payments based upon acheivements

$ 5,000,000

Stock Purchase Agreement [Member] | Preferred Stock [Member]

Business Acquisition [Line Items]

Consideration paid

$ 11,900,000

Number of shares issued

200,000

Aggregate value of Meridian's negative net working capital and certain long-term lease liabilities

$ 4,800,000

Shares held in escrow

100,000

Stock Purchase Agreement [Member] | Warrant [Member]

Business Acquisition [Line Items]

Warrants to purchase

2,250,000

Warrants exercise price

$ 7.50

Warrants and rights outstanding term

2 years

Stock Purchase Agreement [Member] | Meridian Acquisition [Member]

Business Acquisition [Line Items]

Acquired finite lived intangible assets weighted average useful life

3 years

Merger Agreement [Member]

Business Acquisition [Line Items]

Working capital deficiency

$ 5,100,000

Revenues earn-out payment, description

The Merger Agreement provided that if CCH’s 2020 revenues exceed $36 million, there will be an earn-out payment to the seller equal to such excess, up to $3 million.

Additional shares held in escrow, term

18 months

Shares held in escrow

160,000

160,000

Additional shares held in escrow

100,000

Accrued dividends on preferred stock (reversed)

$ 513,000

$ 102,000

Shares released from escrow

55,822

Cash payment

$ 1,300,000

Merger Agreement [Member] | Preferred Stock [Member]

Business Acquisition [Line Items]

Consideration paid

$ 11,900,000

Number of shares issued

760,000

Shares held in escrow, term

24 months

Merger Agreement [Member] | Warrant [Member]

Business Acquisition [Line Items]

Warrants to purchase

2,000,000

Merger Agreement [Member] | Common Stock [Member]

Business Acquisition [Line Items]

Warrants to purchase

1,000,000

Warrants exercise price

$ 7.50

Warrants and rights outstanding term

2 years

Merger Agreement [Member] | Other Warrants [Member]

Business Acquisition [Line Items]

Warrants to purchase

1,000,000

Warrants exercise price

$ 10

Warrants and rights outstanding term

3 years

SCHEDULE OF INTANGIBLE ASSETS A

SCHEDULE OF INTANGIBLE ASSETS AND GOODWILL (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Beginning gross balance	$ 49,291	$ 12,634
Acquisitions	11,370	36,657
Ending gross balance	$ 60,661	$ 49,291

SCHEDULE OF FINITE-LIVED INTANG

SCHEDULE OF FINITE-LIVED INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Total intangible assets	$ 67,659	$ 59,399
Less: Accumulated amortization	34,392	29,421
Intangible assets - net	33,267	29,978
Contracts and Relationships Acquired [Member]
Finite-Lived Intangible Assets [Line Items]
Total intangible assets	48,997	44,497
Capitalized Software [Member]
Finite-Lived Intangible Assets [Line Items]
Total intangible assets	9,014	5,760
Noncompete Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Total intangible assets	1,236	1,236
Other Intangible Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Total intangible assets	$ 8,412	$ 7,906

SCHEDULE OF FINITE-LIVED INTA_2

SCHEDULE OF FINITE-LIVED INTANGIBLE ASSETS, FUTURE AMORTIZATION EXPENSE (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
2021 (six months)	$ 6,730
2022	11,941
2023	8,915
2024	4,031
2025	300
Thereafter	1,350
Total	$ 33,267	$ 29,978

GOODWILL AND INTANGIBLE ASSET_3

GOODWILL AND INTANGIBLE ASSETS - NET (Details Narrative) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expenses	$ 2.6	$ 2.1	$ 5	$ 3.2
Weighted-average amortization period			3 years 2 months 12 days	3 years 2 months 12 days

SCHEDULE OF LOSSES PER SHARE, B

SCHEDULE OF LOSSES PER SHARE, BASIC AND DILUTED (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Earnings Per Share [Abstract]
Net loss attributable to common shareholders	$ (3,865)	$ (8,069)	$ (8,958)	$ (13,214)
Weighted-average common shares used to compute basic and diluted loss per share	14,430,882	12,395,197	14,258,772	12,353,007
Net loss attributable to common shareholders per share - Basic and Diluted	$ (0.27)	$ (0.65)	$ (0.63)	$ (1.07)

DEBT (Details Narrative)

DEBT (Details Narrative) - USD ($) $ in Millions	1 Months Ended
	Oct. 31, 2017	Jun. 30, 2021	Dec. 31, 2020	Sep. 30, 2018
Insurance Financing [Member]
Debt Instrument [Line Items]
Debt instrument interest rate			4.00%
SVB Credit Facility [Member]
Debt Instrument [Line Items]
Secured revolving line of credit percentage	200.00%
Borrowing credit facility		$ 5
Unused portion of credit line fee, percentage	1.00%
Revolving line of credit, collateral	The debt is secured by all of the Company’s domestic assets and 65% of the shares in its offshore facilities. Future acquisitions are subject to approval by SVB.
SVB Credit Facility [Member] | Minimum [Member]
Debt Instrument [Line Items]
Revolving line of credit, interest rate	6.50%
SVB Credit Facility [Member] | Prime Rate [Member]
Debt Instrument [Line Items]
Revolving line of credit, interest rate	1.50%
SVB Credit Facility [Member] | Old [Member]
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity				$ 5
SVB Credit Facility [Member] | New [Member]
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity				$ 10

SCHEDULE OF LEASE EXPENSE (Deta

SCHEDULE OF LEASE EXPENSE (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Leases
Operating lease cost	$ 1,058	$ 835	$ 2,115	$ 1,634
Short-term lease cost	22	1	44	10
Variable lease cost	8	2	14	16
Total- net lease cost	$ 1,088	$ 838	$ 2,173	$ 1,660

SCHEDULE OF SUPPLEMENTAL BALANC

SCHEDULE OF SUPPLEMENTAL BALANCE SHEET INFORMATION RELATED TO LEASES (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Leases [Abstract]
Operating lease ROU assets, net	$ 7,712	$ 7,743
Current operating lease liabilities	4,098	4,729
Non-current operating lease liabilities	5,727	6,297
Total operating lease liabilities	9,825	11,026
ROU assets	9,163	10,648
Asset lease expense	(1,455)	(2,889)
Foreign exchange gain (loss)	4	(16)
ROU assets, net	$ 7,712	$ 7,743
Weighted average remaining lease term (in years): Operating leases	4 years 4 months 20 days	2 years 8 months 15 days
Weighted average discount rate: Operating leases	6.79%	6.76%

SCHEDULE OF SUPPLEMENTAL CASH F

SCHEDULE OF SUPPLEMENTAL CASH FLOW AND OTHER INFORMATION RELATED TO LEASES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Leases [Abstract]
Operating cash flows from operating leases	$ 1,336	$ 764	$ 2,732	$ 1,443
Operating leases, net of impairment and terminations	$ 1,537	$ 2,647	$ 1,748	$ 6,264

SCHEDULE OF MATURITIES OF LEASE

SCHEDULE OF MATURITIES OF LEASE LIABILITIES (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Leases [Abstract]
2021 (six months)	$ 2,474
2022	4,047
2023	1,931
2024	739
2025	481
Thereafter	1,972
Total lease payments	11,644
Less: imputed interest	(1,819)
Total lease obligations	9,825	$ 11,026
Less: current obligations	(4,098)	(4,729)
Long-term lease obligations	$ 5,727	$ 6,297

LEASES (Details Narrative)

LEASES (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Line Items]
[custom:UnoccupiedLeaseCharges]	$ 466,000	$ 64,000
Operating Lease, Impairment Loss		$ 297,000
Operating lease not yet commenced, commitment payable	$ 32,000
Minimum [Member]
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Line Items]
Operating lease renewal term	1 year
Maximum [Member]
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Line Items]
Operating lease renewal term	5 years

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) $ in Millions	Jul. 24, 2020	Jun. 12, 2020	Mar. 25, 2020	Jun. 30, 2021
Loss Contingencies [Line Items]
Compensatory damages description			RPRWC seeks compensatory damages of $6.6 million, plus costs, for MPMA’s alleged breach of the billing services agreement
Compensatory damages	$ 11	$ 20	$ 6.6
Care Cloud Health Inc [Member] | Civil Investigation [Member]
Loss Contingencies [Line Items]
Deferred Plan [Member]				$ 4
Litigation Settlement, Expense				4.2
Care Cloud Health Inc [Member] | Civil Investigation [Member] | Maximum [Member]
Loss Contingencies [Line Items]
Deferred Plan [Member]				$ 4

RELATED PARTIES (Details Narrat

RELATED PARTIES (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Related Party Transaction [Line Items]
Net revenue	$ 34,065,000	$ 19,579,000	$ 63,834,000	$ 41,446,000
Upgradation lease facilities	1,088,000	838,000	2,173,000	1,660,000
Right of use asset	7,712,000		7,712,000		$ 7,743,000
Operating lease liability, current	4,098,000		4,098,000		4,729,000
Operating lease liability	5,727,000		5,727,000		6,297,000
Related Party Leases [Member]
Related Party Transaction [Line Items]
Right of use asset	257,000		257,000		283,000
Operating lease liability, current	196,000		196,000		202,000
Operating lease liability	72,000		72,000		92,000
Nonexclusive Aircraft Dry Lease Agreement [Member] | Kashmir Air Inc [Member]
Related Party Transaction [Line Items]
Operating leases, rent expense	30,000	32,000	60,000	73,000
Accrued liability to related party	1,000		1,000		1,000
Physician [Member]
Related Party Transaction [Line Items]
Net revenue	5,000	2,000	9,000	7,000
Accounts Receivable, Related Parties, Current					2,000
Executive Chairman [Member]
Related Party Transaction [Line Items]
Operating leases, rent expense	49,000	$ 46,000	94,000	$ 93,000
Upgradation lease facilities			807,000
Security deposits and prepaid rent	$ 13,000		$ 13,000		$ 13,000

SHAREHOLDERS_ EQUITY (Details N

SHAREHOLDERS’ EQUITY (Details Narrative) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2021	Jun. 30, 2020
Offsetting Liabilities [Line Items]
Sale of Stock, Number of Shares Issued in Transaction	178,092
Proceeds from Issuance of Common Stock	$ 1,400	$ 1,360
C C H Acquisition [Member]
Offsetting Liabilities [Line Items]
[custom:SharesCancelledDuringPeriodHeldInEscrow]	215,822
ATM [Member]
Offsetting Liabilities [Line Items]
Sale of stock, value		$ 50,000
Underwriter commission fees, percentage		3.00%

SCHEDULE OF DISAGGREGATION OF R

SCHEDULE OF DISAGGREGATION OF REVENUE (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items]
Total	$ 34,065	$ 19,579	$ 63,834	$ 41,446
Healthcare IT [Member]
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items]
Total	31,085	17,126	58,119	35,967
Healthcare IT [Member] | Technology Enabled Business Solutions [Member]
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items]
Total	27,145	16,215	52,990	34,059
Healthcare IT [Member] | Professional Services [Member]
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items]
Total	3,497	398	4,114	789
Healthcare IT [Member] | Qualified Compensation Deferred Plan [Member]
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items]
Total	272	324	656	753
Healthcare IT [Member] | Group Purchasing Services [Member]
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items]
Total	171	189	359	366
Medical Practice Management [Member]
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items]
Total	2,980	2,453	5,715	5,479
Medical Practice Management [Member] | Practice Management Services [Member]
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items]
Total	$ 2,980	$ 2,453	$ 5,715	$ 5,479

SCHEDULE OF ACCOUNTS RECEIVABLE

SCHEDULE OF ACCOUNTS RECEIVABLE, CONTRACT ASSET AND DEFERRED REVENUE (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Disaggregation of Revenue [Line Items]
Beginning balance	$ 44,819
Short-term Contract with Customer [Member]
Disaggregation of Revenue [Line Items]
Beginning balance	1,173	$ 20
CCH acquisition	20
Increase (decrease), net	(12)	82
Ending balance	1,181	1,009
Meridian acquisition		907
Long-term Contract with Customer [Member]
Disaggregation of Revenue [Line Items]
Beginning balance	305	19
CCH acquisition		269
Increase (decrease), net	(121)	(81)
Ending balance	184	207
Meridian acquisition
Accounts Receivable [Member]
Disaggregation of Revenue [Line Items]
Beginning balance	12,089	6,995
CCH acquisition	2,705	2,299
Increase (decrease), net	1,430	(1,888)
Ending balance	16,224	11,206
Meridian acquisition		3,800
Contract Asset [Member]
Disaggregation of Revenue [Line Items]
Beginning balance	4,105	2,385
CCH acquisition	2,402	538
Increase (decrease), net	(1,037)	(376)
Ending balance	$ 5,470	3,428
Meridian acquisition		$ 881

REVENUE (Details Narrative)

REVENUE (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Disaggregation of Revenue [Line Items]
Contract asset represents revenue earned, not paid from group purchasing services	$ 5,500,000	$ 3,400,000
Deferred commissions	1,000,000	$ 836,000
Professional Services [Member]
Disaggregation of Revenue [Line Items]
Contract asset represents revenue earned, not paid from group purchasing services	1,000,000
Revenue Cycle Managementand Orion Acquisition [Member]
Disaggregation of Revenue [Line Items]
Revenue, remaining performance obligation, amount	4,100,000
Orion Acquisition [Member]
Disaggregation of Revenue [Line Items]
Contract asset represents revenue earned, not paid from group purchasing services	$ 315,000
Revenue Benchmark [Member] | Revenue from Rights Concentration Risk [Member]
Disaggregation of Revenue [Line Items]
Cncentration risk percentage	81.00%
Other Services [Member] | Revenue from Rights Concentration Risk [Member]
Disaggregation of Revenue [Line Items]
Cncentration risk percentage	19.00%

DISCLOSURE OF SHARE-BASED COMPE

DISCLOSURE OF SHARE-BASED COMPENSATION ARRANGEMENTS BY SHARE-BASED PAYMENT AWARD (Details) - Restricted Stock Units (RSUs) [Member] - shares	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding and unvested at beginning	382,435	451,085
Granted	419,159	618,879
Vested	(294,575)	(326,996)
Forfeited	(30,412)	(50,896)
Outstanding and unvested at ending	476,607	692,072
Preferred Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding and unvested at beginning	44,000	44,000
Granted	42,166	44,000
Vested	(52,166)	(44,000)
Forfeited
Outstanding and unvested at ending	34,000	44,000

SCHEDULE OF EMPLOYEE SERVICE SH

SCHEDULE OF EMPLOYEE SERVICE SHARE-BASED COMPENSATION, ALLOCATION OF RECOGNIZED PERIOD COSTS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 1,734	$ 1,881	$ 3,002	$ 3,188
Direct Operating Costs [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	254	259	559	429
General and Administrative Expense [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	1,120	1,217	1,745	2,069
Research and Development Expense [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	72	178	209	254
Selling and Marketing Expense [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 288	$ 227	$ 489	$ 436

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details Narrative) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2020	May 31, 2020	Apr. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Liability for cash settled amount	$ 658,000			$ 976,000
Accrued compensation	658,000			$ 976,000
Preferred Stock [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Recognized compensation	$ 450,000
2014 Equity Incentive Plan [Member] | Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock capital shares reserved for future issuance					2,000,000
Number of shares available for grant	1,329,267
2014 Equity Incentive Plan [Member] | Preferred Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Preferred stock capital shares reserved for future issuance					300,000
Number of shares available for grant	327,909
2014 Equity Incentive Plan [Member] | Employees Officers Directors And Consultants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, number of shares authorized						1,351,000
Amended And Restated Equity Incentive Plan [Member] | Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares added to amended and restated equity incentive plan			1,500,000
Amended And Restated Equity Incentive Plan [Member] | Preferred Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares added to amended and restated equity incentive plan		200,000	100,000

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Income Tax Expense (Benefit)	$ 213,000	$ (74,000)	$ 212,000	$ (44,000)
Current Income Tax Expense (Benefit)	51,000		86,000
Deferred Income Tax Expense (Benefit)	$ 162,000		$ 126,000	$ (100,000)
[custom:ThresholdDeductibleInterestExpensesDescription]			the ability to carry back net operating losses incurred from tax years 2018 through 2020 up to the five preceding tax years.
[custom:DeferredPayrollTaxesCurrent-0]					$ 927,000
Cares Act [Member]
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
[custom:DeferredPayrollTaxesCurrent-0]					$ 1,900,000
Cares Act [Member] | Maximum [Member]
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
[custom:ThresholdDeductibleInterestExpensesPeriod]			39 years
Cares Act [Member] | Minimum [Member]
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
[custom:ThresholdDeductibleInterestExpensesPeriod]			15 years

SCHEDULE OF FAIR VALUE, LIABILI

SCHEDULE OF FAIR VALUE, LIABILITIES MEASURED ON RECURRING BASIS, UNOBSERVABLE INPUT RECONCILIATION (Details) - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Balance, beginning
Acquisition	6,500	1,000
Change in fair value
Payments
Balance, ending	$ 6,500	$ 1,000

FAIR VALUE OF FINANCIAL INSTR_3

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details Narrative) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Fair Value Disclosures [Abstract]
Contingent consideration	$ 6.5

SCHEDULE OF REVENUES, OPERATING

SCHEDULE OF REVENUES, OPERATING EXPENSES AND OPERATING INCOME (LOSS) BY REPORTABLE SEGMENT (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Segment Reporting Information [Line Items]
Net revenue	$ 34,065	$ 19,579	$ 63,834	$ 41,446
Direct operating costs	20,534	12,557	38,595	26,123
Selling and marketing	2,204	1,625	4,094	3,206
General and administrative	6,269	5,393	11,893	10,986
Research and development	1,813	2,146	3,839	4,479
Depreciation and amortization	3,128	2,405	5,959	3,738
Impairment and unoccupied lease charges	223	63	1,241	361
Total operating expenses	34,171	24,189	65,621	48,893
Operating (loss) income	(106)	(4,610)	(1,787)	(7,447)
Healthcare IT [Member]
Segment Reporting Information [Line Items]
Net revenue	31,085	17,126	58,119	35,967
Direct operating costs	18,161	10,761	34,149	21,927
Selling and marketing	2,197	1,617	4,079	3,189
General and administrative	3,411	3,014	6,839	6,894
Research and development	1,813	2,146	3,839	4,479
Depreciation and amortization	3,043	2,325	5,792	3,579
Impairment and unoccupied lease charges	223	63	1,241	361
Total operating expenses	28,848	19,926	55,939	40,429
Operating (loss) income	2,237	(2,800)	2,180	(4,462)
Medical Practice Management [Member]
Segment Reporting Information [Line Items]
Net revenue	2,980	2,453	5,715	5,479
Direct operating costs	2,373	1,796	4,446	4,196
Selling and marketing	7	8	15	17
General and administrative	497	468	1,016	1,025
Research and development
Depreciation and amortization	85	80	167	159
Impairment and unoccupied lease charges
Total operating expenses	2,962	2,352	5,644	5,397
Operating (loss) income	18	101	71	82
Unallocated Corporate Expenses [Member]
Segment Reporting Information [Line Items]
Net revenue
Direct operating costs
Selling and marketing
General and administrative	2,361	1,911	4,038	3,067
Research and development
Depreciation and amortization
Impairment and unoccupied lease charges
Total operating expenses	2,361	1,911	4,038	3,067
Operating (loss) income	$ (2,361)	$ (1,911)	$ (4,038)	$ (3,067)

SEGMENT REPORTING (Details Narr

SEGMENT REPORTING (Details Narrative)	6 Months Ended
	Jun. 30, 2021Segment
Segment Reporting [Abstract]
Number of operating segment	2