Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | May 07, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-39248 | |
Entity Registrant Name | The Oncology Institute, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 84-3562323 | |
Entity Address, Address Line One | 18000 Studebaker Road, Suite 800 | |
Entity Address, City or Town | Cerritos | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 90703 | |
City Area Code | 562 | |
Local Phone Number | 735-3226 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 74,437,924 | |
Entity Central Index Key | 0001799191 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Common Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock, $0.0001 par value per share | |
Trading Symbol | TOI | |
Security Exchange Name | NASDAQ | |
Warrant | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Redeemable warrants, each whole warrant exercisable for one share of Common stock, each at an exercise price of $11.50 per share | |
Trading Symbol | TOIIW | |
Security Exchange Name | NASDAQ |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 36,055 | $ 33,488 |
Marketable securities | 29,777 | 49,367 |
Accounts receivable, net | 58,760 | 42,360 |
Other receivables | 368 | 551 |
Inventories | 11,554 | 13,678 |
Prepaid expenses and other current assets | 4,678 | 4,049 |
Total current assets | 141,192 | 143,493 |
Property and equipment, net | 10,995 | 10,883 |
Operating right of use assets | 27,416 | 29,169 |
Intangible assets, net | 17,131 | 17,904 |
Goodwill | 7,230 | 7,230 |
Other assets | 568 | 561 |
Total assets | 204,532 | 209,240 |
Current liabilities: | ||
Accounts payable | 21,015 | 14,429 |
Current portion of operating lease liabilities | 6,390 | 6,363 |
Accrued expenses and other current liabilities | 18,363 | 13,996 |
Total current liabilities | 45,768 | 34,788 |
Operating lease liabilities | 25,060 | 26,486 |
Derivative warrant liabilities | 636 | 636 |
Conversion option derivative liabilities | 3,082 | 3,082 |
Long-term debt, net of unamortized debt issuance costs | 88,385 | 86,826 |
Other non-current liabilities | 273 | 365 |
Deferred income taxes liability | 32 | 32 |
Total liabilities | 163,236 | 152,215 |
Commitments and contingencies (Note 15) | ||
Stockholders’ equity: | ||
Common Stock, $$0.0001 par value, authorized 500,000,000 shares; 76,046,694 shares issued and $74,312,920 shares outstanding at March 31, 2024 and 75,879,025 shares issued and $74,145,251 shares outstanding at December 31, 2023 | 8 | 8 |
Series A Convertible Preferred Stock, $$0.0001 par value, authorized 10,000,000 shares; 165,045 shares issued and outstanding at March 31, 2024 and December 31, 2023 | 0 | 0 |
Additional paid-in capital | 208,346 | 204,186 |
Treasury stock, at cost | (1,019) | (1,019) |
Accumulated deficit | (166,039) | (146,150) |
Total stockholders’ equity | 41,296 | 57,025 |
Total liabilities and stockholders’ equity | $ 204,532 | $ 209,240 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Common shares, par value (in usd per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 76,046,694 | 75,879,025 |
Common stock, shares outstanding (in shares) | 74,312,920 | 74,145,251 |
Series A preferred shares, par value (in usd per share) | $ 0.0001 | $ 0.0001 |
Series A preferred shares, authorized (in shares) | 10,000,000 | 10,000,000 |
Series A preferred shares, shares issued (in shares) | 165,045 | 165,045 |
Series A preferred shares, outstanding (in shares) | 165,045 | 165,045 |
Treasury stock (in shares) | 1,733,774 | 1,733,774 |
Total assets | $ 204,532 | $ 209,240 |
Total liabilities | 163,236 | 152,215 |
Variable Interest Entity | ||
Total assets | 82,603 | 71,305 |
Total liabilities | $ 241,421 | $ 210,422 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue | ||
Total operating revenue | $ 94,666,000 | $ 76,192,000 |
Operating expenses | ||
Goodwill impairment charges | 0 | 16,867,000 |
Selling, general and administrative expense | 28,452,000 | 28,830,000 |
Depreciation and amortization | 1,489,000 | 1,269,000 |
Total operating expenses | 112,638,000 | 109,059,000 |
Loss from operations | (17,972,000) | (32,867,000) |
Other non-operating expense (income) | ||
Interest expense, net | 1,985,000 | 1,443,000 |
Change in fair value of derivative warrant liabilities | 0 | (143,000) |
Change in fair value of earnout liabilities | 0 | (752,000) |
Change in fair value of conversion option derivative liabilities | 0 | (3,318,000) |
Other, net | (68,000) | (143,000) |
Total other non-operating (income) loss | 1,917,000 | (2,913,000) |
Loss before provision for income taxes | (19,889,000) | (29,954,000) |
Income tax expense | 0 | (44,000) |
Net loss | $ (19,889,000) | $ (29,998,000) |
Net loss per share attributable to common stockholders: | ||
Basic (in usd per share) | $ (0.22) | $ (0.33) |
Diluted (in usd per share) | $ (0.22) | $ (0.33) |
Weighted-average number of shares outstanding: | ||
Basic (in shares) | 74,234,287 | 73,449,132 |
Diluted (in shares) | 74,234,287 | 73,449,132 |
Patient services | ||
Revenue | ||
Total operating revenue | $ 52,453,000 | $ 50,273,000 |
Operating expenses | ||
Direct costs | 49,497,000 | 42,814,000 |
Dispensary | ||
Revenue | ||
Total operating revenue | 39,679,000 | 24,240,000 |
Operating expenses | ||
Direct costs | 32,809,000 | 19,145,000 |
Clinical trials & other | ||
Revenue | ||
Total operating revenue | 2,534,000 | 1,679,000 |
Operating expenses | ||
Direct costs | $ 391,000 | $ 134,000 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND CHANGES IN STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Common Stock | Preferred Stock | Treasury Stock | Additional Paid in Capital | Accumulated Deficit |
Balance at beginning (in shares) at Dec. 31, 2022 | 73,265,621 | |||||
Balance at beginning (in shares) at Dec. 31, 2022 | 165,045 | |||||
Balance at beginning at Dec. 31, 2022 | $ 123,175 | $ 7 | $ 0 | $ 186,250 | $ (63,082) | |
Changes in Stockholders' Equity | ||||||
Net income (loss) | (29,998) | (29,998) | ||||
Issuance of common stock upon vesting of restricted stock (in shares) | 488,988 | |||||
Share-based compensation expense | 5,229 | 5,229 | ||||
Balance at ending (in shares) at Mar. 31, 2023 | 73,754,609 | |||||
Balance at ending (in shares) at Mar. 31, 2023 | 165,045 | |||||
Balance at ending at Mar. 31, 2023 | $ 98,406 | $ 7 | $ 0 | 191,479 | (93,080) | |
Balance at beginning (in shares) at Dec. 31, 2023 | 74,145,251 | 75,879,025 | ||||
Balance at beginning (in shares) at Dec. 31, 2023 | 165,045 | 165,045 | ||||
Balance at beginning at Dec. 31, 2023 | $ 57,025 | $ 8 | $ 0 | $ (1,019) | 204,186 | (146,150) |
Changes in Stockholders' Equity | ||||||
Net income (loss) | (19,889) | (19,889) | ||||
Issuance of common stock upon vesting of restricted stock (in shares) | 83,020 | |||||
Issuance of common stock upon exercise of options (in shares) | 84,649 | |||||
Issuance of common stock upon exercise of options | 73 | 73 | ||||
Share-based compensation expense | $ 4,087 | 4,087 | ||||
Balance at ending (in shares) at Mar. 31, 2024 | 74,312,920 | 76,046,694 | ||||
Balance at ending (in shares) at Mar. 31, 2024 | 165,045 | 165,045 | ||||
Balance at ending at Mar. 31, 2024 | $ 41,296 | $ 8 | $ 0 | $ (1,019) | $ 208,346 | $ (166,039) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net loss | $ (19,889,000) | $ (29,998,000) |
Adjustments to reconcile net loss to cash and cash equivalents used in operating activities: | ||
Depreciation and amortization | 1,489,000 | 1,269,000 |
Amortization of debt issuance costs and debt discount | 1,559,000 | 1,523,000 |
Goodwill impairment charges | 0 | 16,867,000 |
Share-based compensation | 4,087,000 | 4,965,000 |
Change in fair value of liability classified warrants | 0 | (143,000) |
Change in fair value of liability classified earnouts | 0 | (752,000) |
Change in fair value of liability classified conversion option derivatives | 0 | (3,318,000) |
Unrealized gain on investments | (85,000) | (143,000) |
Accretion of discount on investment securities | (324,000) | (920,000) |
Deferred taxes | 0 | (26,000) |
Credit losses | 0 | 1,000 |
Loss on disposal of property and equipment | 12,000 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (16,400,000) | (6,141,000) |
Other receivables | 183,000 | 189,000 |
Inventories | 2,124,000 | (993,000) |
Prepaid expenses and other current assets | (629,000) | (24,000) |
Operating right-of-use assets | 1,753,000 | 1,400,000 |
Other assets | (7,000) | (50,000) |
Accounts payable | 6,357,000 | 2,574,000 |
Current and long-term operating lease liabilities | (1,399,000) | (1,243,000) |
Accrued expenses and other current liabilities | 5,368,000 | (805,000) |
Other non-current liabilities | (82,000) | 316,000 |
Net cash and cash equivalents used in operating activities | (15,883,000) | (15,452,000) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (610,000) | (1,839,000) |
Purchases of marketable securities/investments | 0 | (9,759,000) |
Sales of marketable securities/investments | 19,998,000 | 29,999,000 |
Net cash and cash equivalents provided by investing activities | 19,388,000 | 18,401,000 |
Cash flows from financing activities: | ||
Payments made for financing of insurance payments | (1,002,000) | (1,282,000) |
Payment of deferred consideration liability for acquisition | 0 | (409,000) |
Principal payments on financing leases | (9,000) | (18,000) |
Common stock issued for options exercised | 73,000 | 0 |
Net cash and cash equivalents used in financing activities | (938,000) | (1,709,000) |
Net increase in cash and cash equivalents | 2,567,000 | 1,240,000 |
Cash and cash equivalents at beginning of period | 33,488,000 | 14,010,000 |
Cash and cash equivalents at end of period | 36,055,000 | 15,250,000 |
Cash paid for: | ||
Income taxes | 0 | 68,000 |
Interest | 1,134,000 | 1,128,000 |
Supplemental disclosure of noncash investing and financing activities: | ||
Purchases of property and equipment included in accounts payable | $ 147,000 | $ 0 |
Description of the Business
Description of the Business | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Business | Description of the Business Overview of the Business The Oncology Institute, Inc. (“TOI”) was formerly known as DFP Healthcare Acquisitions Corp. ("DFPH"). The Company is a Delaware corporation originally formed in 2019 as a publicly-traded special purpose acquisition company for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination ("Business Combinati on"). TOI was originally founded in 2007 and is a community oncology practice that operates value-based oncology services platforms. TOI has various wholly-owned subsidiaries, including The Oncology Institute, LLC ("TOI LLC") (which was formerly known as TOI Parent, Inc.), The Oncology Institute of Hope and Innovation Patient Safety Organization, LLC, and TOI Management, LLC (“TOI Management”). Additionally, TOI Management holds master services agreements with affiliated physician-owned professional entities ("TOI PCs") that confer controlling financial interest over the professional entities and their wholly-owned subsi diaries (TOI PCs, together with TOI, the “Company”). On November 12, 2021 ("Closing Date"), the Business Combination closed following a series of mergers, which resulted in DFPH emerging as the parent of the combined entity Orion Merger Sub II, LLC and TOI Parent (together, "Legacy TOI"). DFPH was renamed “The Oncology Institute, Inc.” and its c ommon stock and "public warrants" continued to be listed on Nasdaq under the ticker symbols “TOI” and “TOIIW,” respectively (See Note 16). Operationally, the Company’s medical centers provide a complete suite of medical oncology services including: physician services, in-house infusion and pharmacy, clinical trials, radiation, educational seminars, support groups, counseling, and 24/7 patient assistance. TOI’s mission is to heal and empower cancer patients through compassion, innovation and state-of-the-art medical care. The Company brings comprehensive, integrated cancer care into the community setting, including clinical trials, palliative care programs, stem cell transplants, and other care delivery models traditionally associated with non-community-based academic and tertiary care settings. In addition, the Company, through it consolidating subsidiary TOI Clinical Research, LLC ("TCR"), performs cancer clinical trials through a network of cancer care specialists. TCR conducts clinical trials for a broad range of pharmaceutical and medical device companies from around the world. The Company has 126 oncologists and mid-level professionals across 73 clinic locations located within four states: California, Florida, Arizona, and Nevada. The Oncology Institute CA, a Professional Corporation ("TOI CA"), one of the TOI PCs, is comprised of the clinic locations in California, Nevada, and Arizona. The Company has contractual relationships with multiple payors, serving Medicare, including Medicare Advantage, Medi-Cal, and commercial patients. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Unaudited Interim Financial Information The accompanying interim condensed consolidated financial statements are unaudited and have been prepared in accordance with Article 10 of Regulation S-X issued by the U.S. Securities and Exchange Commission ("SEC"). Accordingly, they do not include all of the information and note disclosures required by U.S. generally accepted accounting principles ("GAAP") for complete consolidated financial statements. However, the Company believes that the disclosures are adequate to ensure the information is not misleading. In the opinion of management, all adjustments (of normal and recurring nature) considered necessary for fair presentation have been reflected in these interim statements. As such, the information included in the accompanying unaudited interim condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes as of and for the year ended December 31, 2023, issued on March 28, 2024 in the Company's Annual Report on Form 10-K. Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of TOI, its subsidiaries, all of which are controlled by TOI through majority voting control, and variable interest entities (“VIEs”) for which TOI (through TOI Management) is the primary beneficiary. The Company consolidates entities in which it has a controlling financial interest based on either the variable interest entity or voting interest model. All significant intercompany balances and transactions have been eliminated in consolidation. Variable Interest Entities The Company consolidates entities for which it has a variable interest and is determined to be the primary beneficiary. Noncontrolling interests in less-than-wholly-owned consolidated subsidiaries of the Company are presented as a component of total equity to distinguish between the interests of the Company and the interests of the noncontrolling owners. Revenues, expenses, and net income or losses from these subsidiaries are included in the consolidated amounts as presented on the Condensed Consolidated Statements of Operations. The Company holds variable interests in TOI PCs, which it cannot legally own, as a result of entering into master services agreements ("MSAs"). As of March 31, 2024, TOI held variable interest in TOI CA, The Oncology Institute FL, LLC, a Professional Corporation ("TOI FL"), and The Oncology Institute TX, a Professional Corporation ("TOI TX"), all of which are VIEs. The Company is the primary beneficiary of the TOI PCs and thus, consolidates the TOI PCs in its financial statements. As discussed in Note 17, the shareholders of the Company's consolidating VIEs own a minority of the issued and outstanding common shares of the Company. Business Combinations The Company accounts for all transactions that represent business combinations using the acquisition method of accounting under Accounting Standards Codification ("ASC") Topic No. 805, Business Combinations (“ASC 805”). The Company first assesses whether an acquisition constitutes a business combination or asset acquisition by applying the screening test and analyzing whether the acquired entity has substantive inputs, processes, and the ability to produce outputs. Upon concluding an acquisition is a business combination, per ASC 805, the identifiable assets acquired, the liabilities assumed, and any noncontrolling interest in the acquired entity are recognized and measured at their fair values on the date an acquirer obtains control of the acquiree. Such fair values that are not finalized for reporting periods following the acquisition date are estimated and recorded as provisional amounts. Adjustments to these provisional amounts during the measurement period (defined as the date through which all information required to identify and measure the consideration transferred, the assets acquired, the liabilities assumed, and the noncontrolling interests obtained, limited to one year from the acquisition date) are recorded when identified. Goodwill is determined as the excess of the fair value of the consideration exchanged in the acquisition over the fair value of the net assets acquired. Segment Reporting The Company presents the financial statements by segment in accordance with ASC Topic No. 280, Segment Reporting (“ASC 280”) to provide investors with transparency into how the chief operating decision maker (“CODM”) manages the business. The Company determined the CODM is its Chief Executive Officer. The CODM reviews financial information and allocates resources across three operating segments: patient services, dispensary, and clinical trials & other. Each of the operating segments is also a reporting segment as described further in Note 20. Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates under different assumptions or conditions. Significant items subject to such estimates and assumptions include judgements related to revenue recognition, estimated accounts receivable and the allowance for credit losses, useful lives and recoverability of long-lived and intangible assets, recoverability of goodwill, fair values of acquired identifiable assets and assumed liabilities in business combinations, fair value of intangible assets and goodwill, fair value of share-based compensation, fair value of liability classified instruments, and judgements related to deferred income taxes. Net Income (Loss) Per Share Basic and diluted net income (loss) per share attributable to common stockholders is presented in conformity with the two-class method required for participating securities. The Company's Series A Convertible Preferred Stock is classified as a participating security in accordance with ASC 260. Under the two-class method, basic and diluted net income (loss) per share attributable to common stockholders is computed by dividing the basic and diluted net income (loss) attributable to common stockholders by the basic and diluted weighted-average number of shares of common stock outstanding during the period. Diluted net income per share attributable to common stockholders adjusts basic net income per share for the potentially dilutive impact of stock options, restricted stock units, Medical RSUs (defined in Note 14), earnout shares (defined in Note 14), public warrants, private placement warrants, and Senior Secured Convertible Notes (defined in Note 11). The treasury stock method is used to calculate the potentially dilutive effect of stock options, RSUs, public warrants, and private placement warrants. The if-converted method is used to calculate the potentially dilutive effect of the Senior Secured Notes. In both methods, diluted net income (loss) attributable to common stockholders and diluted weighted-average shares outstanding are adjusted to account for the impact of the assumed issuance of potential common shares that are dilutive, subject to dilution sequencing rules. The earnout shares are contingently issuable; therefore, the earnout shares are excluded from basic and diluted net income (loss) per share until the market conditions have been met (see more detail on the earnout shares in Note 14). The Medical RSUs are also contingently issuable; therefore, they are excluded from basic net income (loss) per share until the performance and service conditions have been met (see more detail in Note 14). Further, the number of contingently issuable Medical RSUs included in diluted net income (loss) per share is based on the number of shares, if any, that would be issuable if the end of the reporting period were the end of the contingency period and if the result would be dilutive. For the periods presented, the public and private placement warrants are out of the money; therefore, the public and private placement warrants are antidilutive and excluded from diluted net loss per share. Fair Value Measurements The Company accounts for fair value measurements under ASC Topic No. 820, Fair Value Measurements (“ASC 820”). The Company uses valuation approaches that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels (see Note 7 for further discussion): Level 1 inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. Level 2 inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. Level 3 inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. The Company's fair value measurement methodology for cash and cash equivalents, accounts receivable, other receivables, and accounts payable approximates fair value because of the short maturity and high liquidity of these instruments. Fair value measurement of investment securities available for sale is based upon quoted prices from active markets, if available (Level 1). If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation methodologies. Level 2 investment securities include US Treasuries purchased in the secondary market that use pricing inputs other than quoted prices in active markets and fair value is determined using pricing models or other valuation methodologies such as broker price indications, which are based on quoted prices for identical or similar notes, which are Level 2 input measures. Contingent considerations are valued using a present value factor using credit rating yields which are considered to be a Level 3 fair value measurement. Fair value measurements used for the goodwill and intangible assets are based on the discounted cash flow method within the income approach and guideline public company method to value the reporting units, which is considered to be a Level 3 fair value measurement. The unobservable inputs utilized in determining the fair value of goodwill based on the income approach primarily include estimated future cash flows, discounted at a rate that approximates the cost of capital of a market participant. Inputs used to calculate the fair value based on the market approach include the revenue and EBITDA multiples based on guidelines for similar publicly traded companies and recent transactions. Fair value measurements of derivative warrants and earnout liabilities are based on Binomial Lattice and Monte-Carlo Simulation Models, respectively, which are considered to be Level 3 fair value measurements. The primary unobservable input utilized in determining the fair value of the derivative warrants and earnouts is the expected volatility of the common stock. Fair value measurements of the convertible note warrant and conversion option derivative liabilities are based on the Black-Derman-Toy model implemented in the Binomial Lattice and Black-Scholes Models, which are considered to be Level 3 fair value measurements. The primary unobservable input utilized in determining the fair value of the convertible note warrant and conversion option derivative liabilities is the expected volatility of the common stock. Cash and Cash Equivalents Cash primarily consists of deposits with banking institutions. The Company considers all highly liquid investments that are both readily convertible into cash and mature within three months from the date of purchase to be cash equivalents. Accounts Receivable and Allowance for Credit Losses The Company’s accounts receivables are recorded and stated at the amount expected to be collected determined by each payor, net of an allowance for credit losses, under ASC Topic No. 310, Receivables (“ASC 310”). In accordance with ASC Topic No. 326, Financial Instruments — Credit Losses (“ASC 326”), the Company recognizes credit losses based on a forward-looking current expected credit losses (“CECL”) model. The Company segregates accounts receivables into portfolio segments based on shared risk characteristics, such as line of business and customer type, for evaluation of expected credit losses. The Company makes estimates of expected credit losses based upon its assessment of various factors, including the age of accounts receivable balances, default-based statistics, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect its ability to collect from customers. The allowance for credit losses is developed using a loss rate method and is recognized in the Condensed Consolidated Statement of Operations. The uncollectible accounts receivables are written off on a quarterly basis in the period when collection activities cease due to a final determination that all or a portion of the balance is no longer collectible and if there is no pending litigation activity related to the receivable. No allowance for credit losses was recorded as of March 31, 2024 and December 31, 2023. Goodwill The Company accounts for goodwill under Accounting Standards Codification Topic No. 350, Intangibles - Goodwill and Other (“ASC 350”). Goodwill represents the excess of the aggregate purchase price paid over the fair value of the net assets acquired in our business combinations. Goodwill is not amortized but is required to be evaluated for impairment at least annually or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The Company performs its annual testing of impairment for goodwill in the fourth quarter of each year. When impairment indicators are identified, the Company compares the reporting unit’s fair value to its carrying amount, including goodwill. An impairment loss is recognized as the difference, if any, between the reporting unit’s carrying amount and its fair value to the extent the difference does not exceed the total amount of goodwill allocated to the reporting unit. When assessing goodwill for impairment for the quarter ended March 31, 2023, we first performed a qualitative assessment to determine whether it was necessary to perform the two-step quantitative analysis. Based on the qualitative assessment including our share price decrease as well as factors related to macroeconomic conditions, industry and market considerations, cost factors, financial performance and market capitalization, we determined it was likely that our reporting unit fair value was less than its carrying value and the quantitative impairment test was performed. Based on the results of our assessment, the Company recorded an impairment charge of $16,867 of goodwill recorded for the three months ended March 31, 2023. We performed a qualitative assessment for the quarter ended March 31, 2024 and determined it was not necessary to perform the two-step quantitative analysis. We determined there was no impairment at and for the three months ended March 31, 2024. Debt The Company accounts for debt net of debt issuance costs and debt discount. Debt issuance costs and debt discount are capitalized, netted against the related debt for presentation purposes, and amortized to interest expense over the terms of the related debt using the effective interest method. The Company accounts for bifurcated, debt-classified embedded features separately as derivative liabilities pursuant to ASC Topic No. 815, Derivatives and Hedging ("ASC 815"). Bifurcated, debt-classified embedded features are recorded at fair value on the Company's balance sheet with subsequent changes in fair value recorded in the Condensed Consolidated Statement of Operations each reporting period. Investments in Marketable Securities The Company's investments in marketable securities are classified as available-for-sale and are carried at fair value. The Company accounts for its investment securities available for sale using the fair value election pursuant to ASC 825, Financial Instruments ("ASC 825"), where changes in fair value are recorded in unrealized gains (losses), net on the Company's Condensed Consolidated Statements of Operations. The Company determines the appropriate classification of these investments at the time of purchase and reevaluates such designation at each balance sheet date. The Company’s marketable securities are classified as current assets if the maturity date is less than one year from the balance sheet date. Interest income and accretion on marketable securities are included in interest income in the Consolidated Statements of Operations. Realized gains and losses on sales of securities, and other-than-temporary declines in the fair value of marketable securities, if any, are included as a component of other income (expense), net in the Condensed Consolidated Statements of Operations. The cost of securities sold is based on the First In, First Out method. At each reporting period, the Company evaluates available-for-sale marketable securities, to the extent the fair value option is not elected, for any credit-related impairment when the fair value of the investment is less than its amortized cost. If the Company determines that the decline in fair value is below the carrying value and this decline is other-than-temporary, credit-related impairment is recognized in the Consolidated Statement of Operations in accordance with ASC 320, Debt Securities . As of March 31, 2024, there were no available-for-sale instruments for which the fair value option was not elected. Emerging Growth Company Pursuant to the Business Combination, the Company qualifies as an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933, as amended ("Securities Act"), as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and has elected to take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies. Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Securities Exchange Act of 1934, as amended (the "Exchange Act")) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies, but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company which is neither an emerging growth company, nor an emerging growth company which has opted out of using the extended transition period, difficult or impossible because of the potential differences in accounting standards used. Comprehensive Loss Comprehensive loss includes net loss to common stockholders as well as other changes in equity that result from transactions and economic events other than those with stockholders. There was no difference between comprehensive loss and net loss to common stockholders for the periods presented. Recently Issued and Adopted Accounting Standards 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): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity ("ASU 2020-06"), which simplifies accounting for convertible instruments by removing major separation models required under current U.S. GAAP. ASU 2020-06 also removes certain settlement conditions that are required for equity-linked contracts to qualify for the derivative scope exception and it also simplifies the diluted earnings per share calculation in certain areas. The new standard is effective for the Company beginning January 1, 2024. The adoption of this standard did not have a material impact on our condensed consolidated financial statements as of March 31, 2024. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers ("ASU 2021-08"). Under ASU 2021-08, an acquirer must recognize, and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606, Revenue from Contract with Customers (“ASC 606”). The guidance is effective for interim and annual periods beginning after December 15, 2023, with early adoption permitted. The Company adopted ASU 2021-08 on January 1, 2024 on a prospective basis. On October 9, 2023, the FASB issued ASU 2023-06: Disclosure Improvements: Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative ("ASU 2023-06") , which amends the disclosure and presentation requirements related to various Codification subtopics. The ASU ("ASU 2023-06") was issued in response to the SEC’s August 2018 final rule that updates and simplifies disclosure requirements the SEC believed were “redundant, duplicative, overlapping, outdated, or superseded.” The new guidance is intended to align U.S. GAAP and SEC requirements while facilitating the application of U.S. GAAP for all entities. The effective date for each amendment will be the date on which the SEC’s removal of that related disclosure requirement from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. We are currently evaluating the impact of the guidance on our consolidated financial statements. In November 2023, the FASB issued ASU 2023-07 , Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ("ASU 2023-07") . The new standard requires a public entity to disclose significant segment expenses and other segment items on an annual and interim basis and provide, in interim periods, all disclosures about a reportable segment’s profit or loss and assets that are currently required annually. Additionally, it requires a public entity to disclose the title and position of the Chief Operating Decision Maker. The ASU ("ASU 2023-07") does not change how a public entity identifies its operating segments, aggregates them, or applies the quantitative thresholds to determine its reportable segments. The new standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. A public entity should apply the amendments in this ASU retrospectively to all prior periods presented in the financial statements. The Company expects this ASU to only impact our disclosures with no impacts to our results of operations, cash flows and financial condition. Moreover, in December 2023, the FASB issued ASU 2023-09 , Income Taxes (Topic 740): Improvement to Income Tax Disclosures ("ASU 2023-09") . The new standard requires a public business entity (PBE) to disclose, on an annual basis, a tabular rate reconciliation using both percentages and currency amounts, broken out into specified categories with certain reconciling items further broken out by nature and jurisdiction to the extent those items exceed a specified threshold. In addition, all entities are required to disclose income taxes paid, net of refunds received disaggregated by federal, state/local, and foreign and by jurisdiction if the amount is at least 5% of total income tax payments, net of refunds received. For PBEs, the new standard is effective for annual periods beginning after December 15, 2024, with early adoption permitted. An entity may apply the amendments in this ASU prospectively by providing the revised disclosures for the period ending December 31, 2025 and continuing to provide the pre-ASU disclosures for the prior periods, or may apply the amendments retrospectively by providing the revised disclosures for all period presented. The Company expects this ASU to only impact our disclosures with no impacts to our results of operations, cash flows, and financial condition. |
Significant Risks and Uncertain
Significant Risks and Uncertainties Including Business and Credit Concentrations | 3 Months Ended |
Mar. 31, 2024 | |
Risks and Uncertainties [Abstract] | |
Significant Risks and Uncertainties Including Business and Credit Concentrations | Significant Risks and Uncertainties Including Business and Credit Concentrations Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash, accounts receivable, and investment securities. Cash accounts in a financial institution may, at times, exceed the Federal Deposit Insurance Corporation coverage of $250 per account ownership category. The Company has not experienced losses on these accounts, and management believes the Company is not exposed to significant risks on such accounts. The Company’s accounts receivable has implicit collection risk. The Company grants credit without collateral to their patients, most of whom are local residents and are insured under third-party payor agreements. The Company believes this risk is partially mitigated by the Company’s establishment of long-term agreements and relationships with third-party payors that provide the Company with insight into historic collectability and improve the collections process. The Company's investment securities portfolio is managed by a third party vendor to provide a relatively stable source of investment income from excess liquidity while satisfactorily managing risk, including credit risk, reinvestment risk, liquidity risk, and interest rate risk. Revenue Concentration Risk The concentration of net revenue on a percentage basis for major payors for the three months ended March 31, 2024 and 2023 are as follows: Three Months Ended March 31, 2024 2023 Percentage of Patient Services Net Revenue: Payor A N/A 11 % Payor B 15 % 15 % There was no concentration of gross receivables of patient services revenue on a percentage basis for major payors at March 31, 2024 and December 31, 2023. All of the Company’s revenue is generated from customers located in the United States. Vendor Concentration Risk The concentration of cost of sales on a percentage basis for major vendors for the three months ended March 31, 2024 and 2023 are as follows: Three Months Ended March 31, 2024 2023 Percentage of Direct Costs: Vendor A 98 % 99 % The concentration of gross payables on a percentage basis for major payors at March 31, 2024 and December 31, 2023 are as follows: March 31, 2024 December 31, 2023 Percentage of Gross Payables: Vendor A 75 % 70 % |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Mar. 31, 2024 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable The Company’s accounts receivable consists primarily of amounts due from third-party payors and patients. See Note 2 for a summary of the Company’s policies relating to accounts receivable and allowance for credit losses. Accounts Receivable as of March 31, 2024 and December 31, 2023 consist of the following: (in thousands) March 31, 2024 December 31, 2023 Oral drug accounts receivable (Dispensary) $ 12,380 $ 2,914 Capitated accounts receivable (Patient Services) 1,791 1,757 FFS accounts receivable (Patient Services) 35,230 30,173 Clinical trials accounts receivable 2,977 2,595 Other trade receivables 6,382 4,921 Total $ 58,760 $ 42,360 The Company adopted ASU 2016-13, as amended, effective January 1, 2023, and determined no allowance for credit losses was required as of that date. No allowance for credit losses was recorded as of March 31, 2024 and December 31, 2023. As of January 1, 2023, the accounts receivable balance amounted to $39,816. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The Company recognizes revenue in accordance with ASC 606 on the basis of its satisfaction of outstanding performance obligations. The Company typically fulfills its performance obligations over time, either over the course of a single treatment (fee-for-service or "FFS"), a month (capitation), or a number of months (clinical research). The Company also has revenue that is satisfied at a point in time (dispensary). Disaggregation of Revenue The Company categorizes revenue based on various factors such as the nature of contracts, payors, order to billing arrangements, and cash flows received by the Company, as follows: (in thousands) Three Months Ended March 31, 2024 2023 Patient services Capitated revenue $ 17,667 $ 16,568 FFS revenue 34,786 33,705 Subtotal 52,453 50,273 Dispensary revenue 39,679 24,240 Clinical research trials and other revenue 2,534 1,679 Total $ 94,666 $ 76,192 Refer to Note 20 for Segment Reporting for disaggregation of revenue by reporting segment. Contract Asset and Liabilities Under ASC 606, contract assets represent rights to payment for performance contingent on something other than the passage of time and accounts receivable are rights to payment for performance without contingencies. The Company does not have any contract assets as of March 31, 2024, January 1, 2023, and December 31, 2023. Refer to Note 4 for accounts receivable as of March 31, 2024 and December 31, 2023. Contract liabilities represent cash that has been received for contracts, but for which performance is still unsatisfied. As of March 31, 2024 and December 31, 2023, contract liabilities amounted to $964 and $545, respectively. As of January 1, 2023, the contract liabilities amounted to $1,139. Contract liabilities are included within other current liabilities and presented in Note 9 along with refund liabilities due to amounts not being material. During the periods ended March 31, 2024 and 2023, the Company recognized revenue of $0 and $264, respectively, related to deferred capitation revenue received (contract liability) as of the beginning of each respective period. Remaining Unsatisfied Performance Obligations The accounting terms for the Company’s patient services and dispensary contracts do not extend past a year in duration. Additionally, the Company applies the ‘as invoiced’ practical expedient to its clinical research contracts. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The Company purchases intravenous chemotherapy drugs and oral prescription drugs from various suppliers. See Note 2 for a summary of the Company’s policies relating to intravenous chemotherapy and oral prescription drugs inventory. The Company’s inventories as of March 31, 2024 and December 31, 2023 were as follows: (in thousands) March 31, 2024 December 31, 2023 Oral drug inventory $ 3,424 $ 3,640 IV drug inventory 8,130 10,038 Total $ 11,554 $ 13,678 |
Marketable Securities and Fair
Marketable Securities and Fair Value Measurements | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Marketable Securities and Fair Value Measurements | Marketable Securities and Fair Value Measurements Marketable Securities The Company accounts for its investment securities as available for sale using the fair value election pursuant to ASC 825, where changes in fair value are recorded in Other, net non-operating income (expense) on the Company's Condensed Consolidated Statements of Operations. The Company’s investments in marketable securities at March 31, 2024 and December 31, 2023 is as follows: March 31, 2024 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash equivalents: U.S. Treasury Bills $ 12,902 $ — $ (1) $ 12,901 Marketable securities: Short-term U.S. Treasuries $ 29,825 $ — $ (48) $ 29,777 Total available for sale securities $ 42,727 $ — $ (49) $ 42,678 December 31, 2023 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash equivalents: U.S. Treasury Bills $ 22,778 $ 5 $ — $ 22,783 Marketable securities: Short-term U.S. Treasuries $ 49,501 $ — $ (134) $ 49,367 Total available for sale securities $ 72,279 $ 5 $ (134) $ 72,150 The contractual maturities of the Company's investments in cash equivalents and marketable securities as of March 31, 2024 and December 31, 2023 is as follows: March 31, 2024 (in thousands) Due in One Year or Less Due After One Year through Five Years Due After Five Years Total Cash equivalents: U.S. Treasury Bills $ 12,901 $ — $ — $ 12,901 Marketable securities: Short-term U.S. Treasuries 29,777 $ — $ — 29,777 Total available for sale securities $ 42,678 $ — $ — $ 42,678 December 31, 2023 (in thousands) Due in One Year or Less Due After One Year through Five Years Due After Five Years Total Cash equivalents: U.S. Treasury Bills $ 22,783 $ — $ — $ 22,783 Marketable securities: Short-term U.S. Treasuries 49,367 — — 49,367 Total available for sale securities $ 72,150 $ — $ — $ 72,150 The Company recorded a net unrealized loss of $81 for the three months ended March 31, 2024. At March 31, 2024, two securities were in an unrealized loss position. The decline in fair value of our securities since acquisition was attributable to a combination of changes in interest rates and general volatility in the credit market conditions in response to the economic uncertainty caused by the risk of an upcoming recession and monetary policy. The Company does not currently intend to sell any of the securities in an unrealized loss position and further believe, it is more likely than not, that we will not be required to sell these securities before their anticipated recovery. Accrued interest receivable on cash equivalents and marketable securities was $60 and $242, respectively, at March 31, 2024 and December 31, 2023, and is included within other receivables Fair Value Measurements The following table presents the carrying amounts of the Company’s recurring and non-recurring fair value measurements at March 31, 2024 and December 31, 2023: March 31, 2024 (in thousands) Total Level 1 Level 2 Level 3 Financial assets: Cash equivalents $ 12,901 $ — $ 12,901 — Marketable securities 29,777 — 29,777 — Financial liabilities: Derivative warrant liabilities $ 636 $ — $ 636 $ — Conversion option derivative liabilities 3,082 — — 3,082 Contingent consideration liability 1,980 — 1,980 — There were no transfers between levels for the three months ended March 31, 2024. As of December 31, 2023, derivative warrant liabilities of $636 were transferred from a Level 3 to a Level 2 financial instrument as a result of the valuation being based on the market price of our public warrants, which management considers to be a similar and comparable instrument, as compared to the previous valuation which was based on the Binomial Lattice Model. December 31, 2023 (in thousands) Total Level 1 Level 2 Level 3 Financial assets: Cash equivalents $ 22,783 $ — $ 22,783 $ — Marketable securities 49,367 — 49,367 — Financial liabilities: Derivative warrant liabilities $ 636 $ — $ 636 $ — Conversion option derivative liabilities 3,082 — — 3,082 Contingent consideration liability 1,944 — 1,944 — Non-recurring fair value measurement: Goodwill $ 7,230 — — $ 7,230 The carrying amounts of cash, accounts receivable, other receivables, and accounts payable approximate fair value because of the short maturity and high liquidity of these instruments. The Company measures its investments (including cash equivalents, marketable securities, and non-current investments) at fair value on a recurring basis and classifies those instruments within Level 2 of the fair value hierarchy. Investment securities, including U.S. Treasury Bills purchased in the secondary market and U.S. Treasury bonds, are classified within Level 2 of the fair value hierarchy because pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined using models or other valuation methodologies. The Company measures its private derivative warrants at fair value on a recurring basis and classifies those instruments within Level 2 of the fair value hierarchy because the valuation is based on an observable input of a similar instrument. The Company measures its earnout, convertible note warrant derivative liability, optional redemption derivative liability and conversion option derivative liability on a recurring basis and classifies those instruments within Level 3 of the fair value hierarchy because unobservable inputs are used to measure fair value. See Note 2 for a summary of the Company’s policies relating to fair value measurements, and Note 11 for more detail on the convertible note warrant, optional redemption, and conversion option derivative liabilities. The Company measures goodwill at fair value on a nonrecurring basis and classifies goodwill within Level 3 of the fair value hierarchy. Due to significant declines in the Company's share price during the three months ended March 31, 2023, the Company performed a quantitative analysis of impairment over goodwill and determined goodwill was impaired. As a result, the Company recorded an impairment charge of $16,867. Goodwill was valued using an equally weighted income approach and market approach. The unobservable inputs utilized in determining the fair value of the goodwill, which is categorized as a Level 3 instrument, are the discount rates ranging from 45.0% to 55.0% and various revenue growth rates utilized in the financial forecast of future cash flows. Additionally, it was concluded in connection with the preparation of these financial statements that, based on the results of our most recent qualitative assessment performed for the three months ended March 31, 2024, there was no impairment of goodwill recorded for the three months ended March 31, 2024. The following table presents information about the Company’s financial liabilities that are measured at fair value on a recurring basis at March 31, 2024: (in thousands) Derivative Earnout Liabilities Conversion Option Derivative Liabilities Balance at December 31, 2022 $ 803 $ 3,960 Decrease in fair value included in other expense (803) (878) Balance at December 31, 2023 $ — $ 3,082 Change in fair value included in other expense — — Balance at March 31, 2024 $ — $ 3,082 As of March 31, 2024 and December 31, 2023, the conversion option derivative and earnout liabilities were valued using a Binomial Lattice and Monte-Carlo Simulation Model, respectively, which is considered to be a Level 3 fair value measurements. The derivative warrant liabilities were valued using the public warrant trading price, which is considered to be a Level 2 fair value measurement, and the contingent consideration liability was valued using a present value factor, which is considered to be a Level 2 fair value measurement. A summary of the Level 3 fair value measurements inputs used in the valuations is as follows: March 31, 2024 First Tranche Earnout Second Tranche Earnout Convertible Note Warrant Derivative Liability Conversion Option Derivative Liabilities Unit price $ 1.58 $ 1.58 $ 1.58 $ 1.58 Term (in years) 0.62 0.62 3.36 3.36 Volatility 65.20 % 65.20 % 73.10 % 73.10 % Risk-free rate 5.20 % 5.20 % 4.30 % 4.30 % Dividend yield — — — — Cost of equity 16.50 % 16.50 % — — December 31, 2023 First Tranche Earnout Second Tranche Earnout Convertible Note Warrant Derivative Liability Conversion Option Derivative Liability Unit price $ 2.04 $ 2.04 $ 2.04 $ 2.04 Term (in years) 0.87 0.87 3.61 3.61 Volatility 49.40 % 49.40 % 58.60 % 58.60 % Risk-free rate 4.90 % 4.90 % 3.90 % 3.90 % Dividend yield — — — — Cost of equity 16.90 % 16.90 % 0.00 % 0.00 % Uncertainty of Fair Value Measurement from Use of Significant Unobservable Inputs The inputs to estimate the fair value of the Company’s earnout, convertible note warrant, and conversion option derivative liabilities were the market price of the Company’s common stock, their remaining expected term, the volatility of the Company’s common stock price and the risk-free interest rate over the expected term. Significant changes in any of those inputs in isolation can result in a significant change in the fair value measurement. Generally, an increase in the market price of the Company’s shares of common stock, an increase in the volatility of the Company’s shares of common stock, and an increase in the remaining term of the derivative liabilities would each result in a directionally similar change in the estimated fair value of the Company’s derivative liabilities. Such changes would increase the associated liability while decreases in these assumptions would decrease the associated liability. An increase in the risk-free interest rate would result in a decrease in the estimated fair value measurement and thus a decrease in the associated liability. The Company has not, and does not plan to, declare dividends on its common stock and, as such, there is no change in the estimated fair value of the derivative warrant liabilities due to the dividend assumption. |
Property and Equipment, Net
Property and Equipment, Net | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net The Company accounts for property and equipment at historical cost less accumulated depreciation. See Note 2 for a summary of the Company’s policies relating to property and equipment. Property and equipment , net, consist of the following: (in thousands) Useful lives March 31, 2024 December 31, 2023 Computers and software 60 months $ 3,433 $ 3,035 Office furniture 84 months 738 724 Leasehold improvements Shorter of lease term or estimated useful life 9,672 9,214 Medical equipment 60 months 2,144 2,082 Construction in progress 1,695 1,801 Finance lease ROU assets Shorter of lease term or estimated useful life 207 207 Less: accumulated depreciation (6,894) (6,180) Total property and equipment, net $ 10,995 $ 10,883 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current and Non-Current Liabilities | 3 Months Ended |
Mar. 31, 2024 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current and Non-Current Liabilities | Accrued Expenses and Other Current and Non-Current Liabilities Accrued expenses and other current liabilities as of March 31, 2024 and December 31, 2023 consist of the following: (in thousands) March 31, 2024 December 31, 2023 Compensation, including bonuses, fringe benefits, and payroll taxes $ 6,951 $ 5,518 Contract liabilities 964 545 Directors and officers insurance premiums — 1,002 Deferred acquisition and contingent consideration (see Note 16) 2,261 2,206 Accrued interest 1,112 1,124 Other liabilities 7,075 3,601 Total accrued expenses and other current liabilities $ 18,363 $ 13,996 Contract liabilities as of March 31, 2024 and December 31, 2023 consist of cumulative adjustments made to capitated revenue recognized in prior periods. Pursuant to the Business Combination, the Company has agreed to indemnify members of the Board and certain officers if they are named or threatened to be named as a party to any proceeding by reason of the fact that they acted in such capacity. The Company entered into a $1,250 financing arrangement in November 2023 with a maturity date of August 2024 at 8.75% annual interest rate to pay 10 monthly principal payments of approximately $122 in premiums for directors’ and officers’ (“D&O”) insurance coverage through November 2024 to protect against such losses on November 12, 2021 . The principal outstanding balance was $1,002 as of December 31, 2023. As of March 31, 2024, the remaining D&O principal balance was paid in full. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Leases | Leases The Company leases clinics, office buildings, and certain equipment under noncancellable financing and operating lease agreements that expire at various dates through June 2033. See Note 2 for a summary of the Company’s policies relating to leases. The initial terms of operating leases range from 1 to 10 years and certain leases provide for free rent periods, periodic rent increases, and renewal options. Monthly payments for these leases range from $0 to $62 . All lease agreements generally require the Company to pay maintenance, repairs, property taxes, and insurance costs, which are generally variable amounts based on actual costs incurred during each applicable period. The Company has determined that periods covered by options to extend the Company's leases are excluded from the lease terms as it is not reasonably certain the Company will exercise such options. Lease Expense The components of lease expense were as follows for the three months ended March 31, 2024 and 2023: (in thousands) Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 Operating lease costs: $ 1,988 $ 1,762 Finance lease costs: Amortization of ROU asset $ 10 $ 20 Interest expense $ 2 $ 3 Other lease costs: Short-term lease costs $ — $ 31 Variable lease costs $ 361 $ 274 Operating and other lease costs are presented as part of selling, general, and administrative expenses. The components of finance lease costs appear in depreciation and amortization and interest expense. Maturity of Lease Liabilities The aggregate future lease payments for the Company's leases in years subsequent to March 31, 2024 are as follows: (in thousands) Operating Leases Finance Leases 2024 (remaining nine months) $ 6,218 $ 36 2025 7,825 42 2026 7,319 39 2027 5,866 29 2028 4,007 — Thereafter 6,243 — Total future lease payment $ 37,478 $ 146 Less: amount representing interest (6,028) (15) Present value of future lease payment (lease liabilities) $ 31,450 $ 131 Reported as: Lease liabilities, current $ 6,390 $ 41 Lease liabilities, noncurrent 25,060 90 Total lease liabilities $ 31,450 $ 131 Lease Term and Discount Rate The following table provides the weighted average remaining lease terms and weighted average discount rates for the Company's leases as of March 31, 2024 and 2023: March 31, 2024 March 31, 2023 Weighted-average remaining lease term (in years) Operating 5.14 5.19 Finance 3.29 3.56 Weighted-average discount rate Operating 6.54 % 5.23 % Finance 6.50 % 6.05 % Supplemental Cash Flow Information The following table provides certain cash flow and supplemental noncash information related to the Company's lease liabilities for the three months ended March 31, 2024 and 2023. (in thousands) Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities: Operating cash payment from operating leases $ 73 $ 1,581 Financing cash payments for finance leases 12 21 Lease liabilities arising from obtaining right-of-use assets: Operating leases $ 99 $ 1,550 Finance leases — 3 Lease Modifications During, the three months ended March 31, 2024, the Company had no lease modifications. During the three months ended March 31, 2023 , the Company expanded its lease space for one clinic in California. This expansion constitutes a lease modification that qualifies as a change of accounting for the original lease and not a separate contract. Accordingly, in the three months ended March 31, 2023 |
Leases | Leases The Company leases clinics, office buildings, and certain equipment under noncancellable financing and operating lease agreements that expire at various dates through June 2033. See Note 2 for a summary of the Company’s policies relating to leases. The initial terms of operating leases range from 1 to 10 years and certain leases provide for free rent periods, periodic rent increases, and renewal options. Monthly payments for these leases range from $0 to $62 . All lease agreements generally require the Company to pay maintenance, repairs, property taxes, and insurance costs, which are generally variable amounts based on actual costs incurred during each applicable period. The Company has determined that periods covered by options to extend the Company's leases are excluded from the lease terms as it is not reasonably certain the Company will exercise such options. Lease Expense The components of lease expense were as follows for the three months ended March 31, 2024 and 2023: (in thousands) Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 Operating lease costs: $ 1,988 $ 1,762 Finance lease costs: Amortization of ROU asset $ 10 $ 20 Interest expense $ 2 $ 3 Other lease costs: Short-term lease costs $ — $ 31 Variable lease costs $ 361 $ 274 Operating and other lease costs are presented as part of selling, general, and administrative expenses. The components of finance lease costs appear in depreciation and amortization and interest expense. Maturity of Lease Liabilities The aggregate future lease payments for the Company's leases in years subsequent to March 31, 2024 are as follows: (in thousands) Operating Leases Finance Leases 2024 (remaining nine months) $ 6,218 $ 36 2025 7,825 42 2026 7,319 39 2027 5,866 29 2028 4,007 — Thereafter 6,243 — Total future lease payment $ 37,478 $ 146 Less: amount representing interest (6,028) (15) Present value of future lease payment (lease liabilities) $ 31,450 $ 131 Reported as: Lease liabilities, current $ 6,390 $ 41 Lease liabilities, noncurrent 25,060 90 Total lease liabilities $ 31,450 $ 131 Lease Term and Discount Rate The following table provides the weighted average remaining lease terms and weighted average discount rates for the Company's leases as of March 31, 2024 and 2023: March 31, 2024 March 31, 2023 Weighted-average remaining lease term (in years) Operating 5.14 5.19 Finance 3.29 3.56 Weighted-average discount rate Operating 6.54 % 5.23 % Finance 6.50 % 6.05 % Supplemental Cash Flow Information The following table provides certain cash flow and supplemental noncash information related to the Company's lease liabilities for the three months ended March 31, 2024 and 2023. (in thousands) Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities: Operating cash payment from operating leases $ 73 $ 1,581 Financing cash payments for finance leases 12 21 Lease liabilities arising from obtaining right-of-use assets: Operating leases $ 99 $ 1,550 Finance leases — 3 Lease Modifications During, the three months ended March 31, 2024, the Company had no lease modifications. During the three months ended March 31, 2023 , the Company expanded its lease space for one clinic in California. This expansion constitutes a lease modification that qualifies as a change of accounting for the original lease and not a separate contract. Accordingly, in the three months ended March 31, 2023 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Debt Senior Secured Convertible Note On August 9, 2022, TOI entered into a Facility Agreement (the “Facility Agreement”) with certain lenders (“Lenders”) and Deerfield Partners L.P. (“Agent”), pursuant to which, TOI borrowed cash loans from the Lenders in the amount of $110,000, in exchange for which, TOI issued to each Lender a secured convertible promissory note (“Senior Secured Convertible Note”), which is payable to such Lenders in an amount equal to the unpaid principal amount of loans held by such Lender. The Senior Secured Convertible Note will mature on August 9, 2027 (the “Maturity Date”) and shall bear interest at the rate of 4.00% per annum from August 9, 2022, on the outstanding principal amount, any overdue interest and any other amounts and obligations. The interest shall be paid in cash quarterly in arrears commencing on October 1, 2022. In case of any prepayment, repayment or redemption of the Senior Secured Convertible Note, the Company shall pay any accrued and unpaid interest on the principal, along with a make whole amount and an exit fee. The Facility Agreement requires the Company to meet certain operational and reporting requirements, including, but not limited to, customary regulatory, financial reporting, and disclosure requirements. Additionally, limitations are placed on the Company's ability to merge with other companies and enter into other debt arrangements and permitted investments are limited to amounts specified in the Facility Agreement. The Facility Agreement also provides certain restrictions on dividend payments and other equity transactions and requires the Company to make prepayments under specified circumstances. Financial covenants in the Facility Agreement require the Company to maintain a minimum unrestricted cash and cash equivalent balance of $40,000 and a minimum net quarterly revenues of $75,000 during fiscal year 2024; and $100,000 during fiscal year 2025. Cash Equivalents as defined by the Facility Agreement means (a) any readily-marketable securities (i) issued by, or directly, unconditionally and fully guaranteed or insured by the United States federal government or (ii) issued by any agency of the United States federal government the obligations of which are fully backed by the full faith and credit of the United States federal government, (b) any readily-marketable direct obligations issued by any other agency of the United States federal government, any state of the United States or any political subdivision of any such state or any public instrumentality thereof, in each case having a rating of at least “A-1” from S&P or at least “P-1” from Moody’s, (c) any commercial paper rated at least “A-1” by S&P or “P-1” by Moody’s and issued by any person organized under the laws of any state of the United States, (d) any United States dollar-denominated time deposit, insured certificate of deposit, overnight bank deposit or bankers’ acceptance issued or accepted by any commercial bank that (A) is organized under the laws of the United States, any state thereof or the District of Columbia, (B) is “adequately capitalized” (as defined in the regulations of its primary federal banking regulators) and (C) has Tier 1 capital (as defined in such regulations) in excess of $250,000 and (e) shares of any United States money market fund that (i) has substantially all of its assets invested continuously in the types of investments referred to in clause (a), (b), (c) and/or (d) above with maturities as set forth in the proviso below, (ii) has net assets in excess of $500,000 and (iii) has obtained from either S&P or Moody’s the highest rating obtainable for money market funds in the United States; provided, however, that the maturities of all obligations specified in any of clause (a), (b), (c) and (d) above shall not exceed one year. Additionally, the registration rights agreement between the Company and certain stockholders of Legacy TOI and DFPH entered into in connection with the Business Combination requires the Company to have an effective registration statement and calls for payment should the registration statement cease to remain effective. The Company was in compliance with the covenants of the Facility Agreement as of March 31, 2024. Conversion Options The Senior Secured Convertible Note contains several embedded conversion options (the “Conversion Options”) that grant the holders of the Senior Secured Convertible Note the ability to convert the Senior Secured Convertible Note at any time on or after date of issuance of the note. The Conversion Options are convertible into shares of the Company’s common stock (such converted shares, “Conversion Shares”) and, in certain circumstances, a combination of cash and shares of the Company’s common stock, or a combination of cash, other assets and securities or other property of any Company successor entity. The Conversion Shares or settlement amounts shall be computed on the basis of a predefined formula, with a set conversion price of $8.567 as one of the inputs and a conversion cap of 14,663,019 shares. The if-converted value did not exceed the principal amount as of March 31, 2024. No Conversion Shares were issued as of March 31, 2024 and December 31, 2023. The Company evaluated the Conversion Options of the Senior Secured Convertible Note under ASC 815 and concluded that they require bifurcation from the host contract as a separate unit of account. The Conversion Options do not meet the criteria to be classified in shareholders’ equity and hence, are accounted for as a derivative liability remeasured at fair value at each balance sheet date with changes in fair value reported in earnings. The Conversion Options contain certain limits on exercise if, after giving effect to the exercise, the Lender would beneficially own a number of shares of common stock of the Company in excess of those permissible under the terms of the Senior Secured Convertible Note. The number of shares to be issued against these notes and conversion price are each subject to adjustments provided under the terms of Senior Secured Convertible Note. The holder shall receive dividends on the Senior Secured Convertible Note and distributions of any kind made to the holders of common stock, other than dividends of, or distributions in, shares, to the same extent as if the holder had converted the Senior Secured Convertible Note into such shares and had held such shares on the record date for such dividends and distributions any limitations on conversion options. Optional Redemption The Facility Agreement also provides the Company the right to redeem the outstanding principal amount of each note (“Optional Redemption”) for the Optional Redemption Price. The Company shall not affect any Optional Redemption under this Senior Secured Convertible Note unless along with this, the Company effects an optional redemption under all other notes in accordance with the terms thereof, on a pro rata basis, based upon the respective applicable original principal amount of each of the notes outstanding as of the date the notice for Optional Redemption is delivered to the holders. The Company evaluated the Optional Redemption feature of the Senior Secured Convertible Note under ASC 815 and concluded that it requires bifurcation from the host contract as a separate unit of account. The Optional Redemption feature does not meet the criteria to be classified in shareholders’ equity and hence, is accounted for as a derivative liability remeasured at fair value at each balance sheet date with changes in fair value reported in earnings. The fair value of the Optional Redemption feature is de minimis. If the principal redemption amount specified in an Optional Redemption notice is less than the entire principal amount then outstanding, the principal amount specified in each conversion notice shall be applied (i) first, to reduce, on a dollar-for-dollar basis, the principal amount of the note in excess of the principal redemption amount until such excess principal amount is reduced to zero and (ii) to reduce, on a dollar-for-dollar basis, the principal redemption amount until all of such principal redemption amount shall have been converted. Convertible Note Warrants The Facility Agreement also provides for the issuance of warrants (the “Convertible Note Warrants”) on each date any principal amount of any Senior Secured Convertible Note is paid, repaid, redeemed, or prepaid at any time prior to the Maturity Date. Convertible Note Warrants are exercisable from their original issue date to August 9, 2027, for purchase of an aggregate amount of Conversion Shares into which such principal amount of Senior Secured Convertible Note was convertible into, immediately prior to such payment, at an exercise price of $8.567. The holder of Convertible Note Warrants may pay the exercise price in cash or exercise the warrant on cashless basis or through a reduction of an amount of principal outstanding under any Senior Secured Convertible Note held by such holder. In the event that the Convertible Note Warrant has not been exercised in full as of the last business day during its term, the holder shall be deemed to have exercised the purchase rights represented by the Convertible Note Warrant in full as a cashless exercise, in which event the Company shall issue number of shares to the holder computed on the basis of a predefined formula. The Company evaluated the Convertible Note Warrants of the Senior Secured Convertible Note under ASC 815 and concluded that they require bifurcation from the host contract as a separate unit of account. The Convertible Note Warrants do not meet the criteria to be classified in shareholders’ equity and hence, are accounted for as a derivative liability remeasured at fair value at each balance sheet date with changes in fair value reported in earnings. The Convertible Note Warrant holder shall be entitled to receive any dividend or distribution made by the Company to the holders of common stock to the same extent as if the holder had exercised the Convertible Note Warrants in full in a cash exercise. The number of shares to be issued against these warrants and exercise price are each subject to adjustments provided under the terms of Convertible Note Warrants. The Convertible Note Warrants contain certain limits on exercise if, after giving effect to the exercise, the Lender would beneficially own a number of shares of common stock of the Company in excess of those permissible under the terms of the Convertible Note Warrants. Further, the Convertible Note Warrants can be fully or partially settled in cash in certain cases in accordance with the terms of issuance such as when shares issuable upon exercise of the warrants exceed a predefined number, upon occurrence of predefined event of default and upon occurrence of predefined events that will bring a fundamental change in the Company such as merger, consolidation, business combination, recapitalization, reorganization, reclassification or other similar event. As of March 31, 2024 and December 31, 2023, there were no Convertible Note Warrants outstanding. Allocation of Proceeds The Company has allocated total issuance proceeds of $110,000 among the Senior Secured Convertible Note and Convertible Note Warrants based on fair value. Upon issuance of the Convertible Note Warrants, the Company recorded Convertible Note Warrants, Optional Redemption, and Conversion Options of $0, $0 and $28,160, which were recorded as a debt discount to the Senior Secured Convertible Note of $110,000. The Company will amortize the debt discount over a period of 5 years (of which 3.36 years remain). The total issuance costs of $4,924 was allocated among the Senior Secured Convertible Note, Convertible Note Warrants, Optional Redemption, and Conversion Options, by allocating costs of $0, $0, and $1,260 to the Convertible Note Warrants, Optional Redemption, and Conversion Options with the residual cost of $3,663 being allocated to the Senior Secured Convertible Note (in addition to the debt discount). The Company expensed issuance costs allocated to Warrants, Optional Redemption, and Conversion Options at inception and will amortize the costs allocated to the Senior Secured Convertible Note over a period of 5 years (of which 3.36 years remain). Amounts Outstanding and Recognized during the Periods Presented The Senior Secured Convertible Note as of March 31, 2024 and December 31, 2023 consists of the following: (in thousands) March 31, 2024 December 31, 2023 Senior Secured Convertible Note, due August 9, 2027 $ 110,000 $ 110,000 Less: Unamortized debt issuance costs 2,718 2,875 Less: Unamortized debt discount 18,897 20,299 Long-term debt, net of unamortized debt discount and issuance costs $ 88,385 $ 86,826 The amortization of the debt issuance costs was charged to interest expense for all periods presented. For the three months ended March 31, 2024 and 2023, the effective yield was 13.38%. The amount of debt issuance costs included in interest expense for the three months ended March 31, 2024 and 2023 was $1,559 and $1,523, respectively. The Company had interest expense of $1,112 and $1,100 on the Credit Agreement term loan for the three months ended March 31, 2024 and 2023, respectively. There was $1,100 accrued interest as of March 31, 2024 and 2023. There was $1,124 accrued interest as of December 31, 2023. On August 9, 2022, the Company also entered into the Guarantee and Security Agreement (“Guarantee Agreement”) with the Agent for the purpose of providing a guarantee of all the obligations under the Facility Agreement (refer to Note 15. Commitments and Contingencies for detail). Debt Maturities The following table summarizes the stated debt maturity related to the Senior Secured Convertible Note as of March 31, 2024: (in thousands) 2024 (remaining nine months) $ — 2025 — 2026 — 2027 110,000 Total debt $ 110,000 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company recorded income tax expense of $0 for the three months ended March 31, 2024, as compared to income tax expense of $44 for the three months ended March 31, 2023. The decrease of $44, in income tax expense is primarily related to the corresponding change in the valuation allowance for TOI. The Company's effective tax rate increased to 0.00% for the three months ended March 31, 2024 , from (0.15)% for the three months ended March 31, 2023. The Company's effective tax rate for the three months ended March 31, 2024 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2024 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity Common Stock As of March 31, 2024, there were 76,046,694 shares issued and 74,312,920 shares outstanding of common stock. As of December 31, 2023, there were 75,879,025 shares issued and 74,145,251 shares outstanding of common stock. Voting The holders of the Company’s common stock are entitled to one vote for each share of common stock held at all meetings of stockholders (and written actions in lieu of meetings), and there is no cumulative voting. Dividends Common stockholders are entitled to receive dividends whenever funds are legally available and when declared by the board of directors. No dividends have been declared as of March 31, 2024 and December 31, 2023. Preferred Stock Upon the Closing Date of the Business Combination, pursuant to the terms of the Amended and Restated Certificate of Incorporation, the Company authorized 10,000,000 shares of Series A Common Equivalent Preferred Stock (“preferred stock”) with a par value and liquidation preference of $0.0001 per share. The Company’s board of directors has the authority, without further action by the stockholders to issue such shares of preferred stock in one or more series, to establish, from time to time the number of shares to be included in each such series, and to fix the dividend, voting, and other rights, preferences, and privileges of the shares. Immediately following the Closing Date and as of December 31, 2021, there were 163,510 shares of preferred stock outstanding. As of March 31, 2024 and December 31, 2023, there were 165,045 shares of preferred stock outstanding. Conversion Each share of preferred stock is convertible, at any time on the part of the holder except with respect to the Beneficial Ownership Limitation (defined below), into 100 shares of common stock. Blocker/Beneficial Ownership Limitation The preferred stock is subject to a beneficial ownership limitation such that the preferred stock may not, at any time, be convertible into more than 4.9% of the total number of shares of common stock outstanding (“Beneficial Ownership Limitation”). Voting The holders of preferred stock do not have voting rights in the Company. Dividends The holders of preferred stock are entitled to receive dividends whenever funds are legally available and when declared by the board of directors on an as-converted basis. No dividends have been declared as of March 31, 2024 . Assumed Public Warrants and Private Placement Warrants As a result of the Business Combination, holders of the public warrants and private placement warrants are entitled to acquire common stock of the Company. The warrants became exercisable 30 days from the completion of the Business Combination, on December 12, 2021, and will expire five years after the completion of the Business Combination or earlier upon redemption or liquidation. As of March 31, 2024, there are 5,749,986 public warrants outstanding and 3,177,542 private placement warrants outstanding. Each warrant entitles the holder to purchase one share of common stock for $11.50 per share. Private warrants held by the initial purchaser or certain permitted transferees may be exercised on a cashless basis. If the reported last sale price of the common stock equals or exceeds $18.00 per share for any 20 trading days within a 30-trading day period ending three business days before the Company sends the notice of redemption to the warrant holders, the Company may redeem all the public warrants at a price of $0.01 per warrant upon not less than 30 days’ prior written notice. If the Company calls the public warrants for redemption, management will have the option to require all holders that wish to exercise the public warrants to do so on a cashless basis. The Company will not be required to net cash settle the warrants. The private warrants are exercisable on a cashless basis and are non-redeemable so long as they are held by the initial purchasers or their permitted transferees. If the private warrants are held by someone other than the initial purchasers of their permitted transferees, the private warrants will be redeemable by the Company and exercisable by such holders on the same basis as the public warrants. Share Repurchase Program On June 14, 2023, the Company's Board approved a share repurchase program with authorization to purchase up to 5 million shares of the Company's stock. The Company repurchased 1,593,128 shares of its common stock for $894 through one or more securities broker-dealers, in open market purchases and negotiated market purchases. On August 28, 2023, the Company's Board approved a share repurchase program with authorization to purchase up to 2 million shares of the Company’s common stock. The Company repurchased 140,646 shares of its common stock for $125 through one or more securities broker-dealers, in open market purchases and negotiated market purchases. The financial impact of the share buybacks, including the change in the number of outstanding shares and its effect on earnings per share (EPS), is disclosed in the earnings per share computation in accordance with ASC 260, Earnings Per Share. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation Non-Qualified Stock Option Plan On January 2, 2019, the Company issued and adopted the 2019 Non-Qualified Stock Option Plan (the “2019 Plan”) to incentivize directors, consultants, advisors, and other key employees of the Company and its subsidiaries to continue their association by providing opportunities to participate in the ownership and further growth of the Company. The 2019 Plan provides for the grant of options (the “Stock Options”) to acquire common shares of the Company. In conjunction with the Business Combination, the Company amended and fully restated the 2019 Plan through the establishment of the 2021 Incentive Plan (“2021 Plan”). Stock Options are exercised from the pool of shares designated by the appropriate Committee of the Board of Directors. The grant-date fair value of each option award is estimated on the date of grant using the Black-Scholes-Merton option-pricing model. The grant date fair value of the service vesting and the performance vesting options is recognized as an expense over the requisite service period and upon the achievement of the performance condition deemed probable of being achieved, respectively. The exercise price of each Stock Option shall be determined by the Committee and may not be less than the fair market value of the common shares on the date of grant. Stock Options have 10-year terms, after which they expire and are no longer exercisable. The total number of common shares for which Stock Options may be granted under the 2021 Plan shall not exceed 15,640,000. Stock Options become vested upon fulfillment of either service vesting conditions, performance vesting conditions, or both, as determined by the award agreement entered into by the Company and optionee. The service vesting requirement states that: (i) 25% of the service vesting options shall vest on the first anniversary of the grant date and (ii) the remaining 75% shall vest on an equal monthly-basis, so long as the optionee has remained continuously employed by the Company from the date of the award through the fourth anniversary of the grant date. The performance vesting requirement states that Stock Options shall vest upon sale of the Company only if the optionee has been continuously employed by the Company or its subsidiaries from the grant date through the date of such sale of the Company. For the awards vesting based on service conditions only and that have a graded vesting schedule, the Company recognizes compensation expense for vested awards in earnings, net of actual forfeitures in the period they occur, on a straight-line basis over the requisite service period. As of March 31, 2024, the total number of shares of common stock remaining available for future awards (e.g., non-qualified stock options, incentive stock options, restricted stock units, restricted stock awards) under the 2021 Plan is 6,281,181. There were no Stock Options granted for the three months ended March 31, 2024. The weighted average assumptions used in the Black-Scholes-Merton option-pricing model for the units granted during the three months ended March 31, 2023 Stock Options are provided in the following table: March 31, 2023 Valuation assumptions: Expected dividend yield — % Expected volatility 64.00 % Risk-free rate 3.40 % Expected term (years) 6.25 The Company used the simplified method to calculate the expected term of stock option grants because sufficient historical exercise data was not available to provide a reasonable basis for the expected term. Under the simplified method, the expected term is estimated to be the mid-point between the vesting date and the contractual term of the option. Stock option activity during the three months ended March 31, 2024 and 2023 is as follows: Stock options Number of shares Weighted average exercise price Weighted average remaining contractual term (years) Aggregate intrinsic value (in thousands) Balance at January 1, 2024 8,525,262 $ 1.74 Granted — — Exercised (84,649) 0.86 Forfeited (59,776) 1.38 Expired — — Balance at March 31, 2024 8,380,837 $ 1.76 6.80 $ 5,006 Vested Options Exercisable at March 31, 2024 5,178,613 $ 1.49 6.04 $ 3,295 Stock options Number of shares Weighted average exercise price Weighted average remaining contractual term (years) Aggregate intrinsic value (in thousands) Balance at January 1, 2023 8,049,474 $ 2.14 Granted 1,948,354 0.48 Exercised — — Forfeited (163,414) 3.20 Expired (1,747) 1.08 Balance at March 31, 2023 9,832,667 $ 1.79 8.02 $ 384 Vested Options Exercisable at March 31, 2023 3,271,151 $ 1.33 6.68 $ — Total share-based compensation expense during the three months ended March 31, 2024 and 2023 was $2,507 and $2,707, respectively . At March 31, 2024, there was $7,939 of total unrecognized compensation cost related to unvested service Stock Options granted under the 2021 Plan that are expected to vest. That cost is expected to be recognized over a weighted average period of 2.21 years as of March 31, 2024. During the three months ended March 31, 2024, the Company received $73 in cash and no tax benefit from the stock options exercised. The total fair value of common shares vested during the three months ended March 31, 2024 and 2023 was $1,041 and $281, respectively. Restricted Stock Units (“RSUs”) The Company’s has 1,976,406 and 2,176,422 RSU’s outstanding as of March 31, 2024 and December 31, 2023, respectively. The RSU’s are service vesting and are valued based on the fair value of the Company’s common stock at the date of grant. The weighted-average grant date fair values of the RSUs granted during three months ended March 31, 2024 and 2023, were determined to be $2.14 and $0.48, respectively, based on the fair value of the Company’s common share at the grant date. A summary of the activity for the RSUs for the three months ended March 31, 2024 and 2023, respectively, are shown in the following table: Three Months Ended March 31, 2024 2023 Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Unvested at beginning of year 2,176,422 $ 3.50 2,106,540 $ 7.25 Granted 6,787 2.14 1,863,539 0.48 Vested (83,020) 10.90 (331,675) 4.12 Forfeited (123,783) 6.71 (56,427) 6.63 Unvested at end of year 1,976,406 $ 2.98 3,581,977 $ 10.98 The total share-based compensation expense related to RSUs was $1,545 and $2,088, respectively, during the three months ended March 31, 2024 and 2023 related to the RSUs. As of March 31, 2024 there was $4,426 of unrecognized compensation expense related to the RSUs and RSAs that are expected to vest. That cost is expected to be recognized over a weighted average period of 1.77 years as of March 31, 2024 . As of March 31, 2024 , 83,020 of the RSUs have vested and zero were net settled to cover the required withholding tax upon vesting. RSUs granted to Medical Employees and Nonemployees In 2022, the Company entered into arrangements with certain medical directors and supervisors of advanced practice providers employed by or engaged as independent contractors of TOI to issue RSUs of the Company (“Medical RSUs”). Vesting on each annual Medical RSU award is dependent on the participant performing a specified minimum number of service hours during the calendar year (“One-Year Term”) and further contingent upon the participant’s continued service to, or employment by, the Company through the grant date. The Company’s regular grant date for these Medical RSU awards is in the first quarter of the calendar year following the one-Year Term. During the three months ended March 31, 2024 and 2023, zero and 8,317 Medical RSU awards were granted. The number of Medical RSUs granted to each such participant is determined by dividing a fixed monetary value by the trailing five-day closing price per share of the Common Stock preceding the grant date. Due to the calculation, some Medical RSU awards are liability-classified whereas other Medical RSU awards have a fixed number of shares and are equity-classified. There were no unvested equity-classified Medical RSU awards outstanding as of March 31, 2024 or March 31, 2023. A summary of the activity for the equity-classified Medical RSUs for the three months ended March 31, 2024 and 2023, respectively, is shown in the following table: Three Months Ended March 31, 2024 2023 Balance at beginning of period — 147,470 Granted — 8,317 Vested — (155,787) Forfeited — — Balance at end of period — — Total compensation costs for Medical RSUs was $0 and $58 for the three months ended March 31, 2024 and 2023, respectively. As of December 31, 2023, all Medical RSUs had vested. Earnout Shares granted to Employees In connection with the Business Combination in 2019, The Company issued Employee Earnout Shares. Employee Earnout Shares vests upon the Company common stock achieving the price per share as provided for in the agreement, so long as the optionee has remained continuously employed by the Company at that date and may be subject to other vesting requirements. A summary of the activity for the Employees Earnout Shares for the three months ended March 31, 2024 and 2023 is shown in the following table: Three Months Ended March 31, 2024 2023 Outstanding at beginning of period 1,401,064 1,417,632 Granted — — Vested — — Forfeited — (16,568) Outstanding at end of period 1,401,064 1,401,064 The total share-based compensation expense during the three months ended March 31, 2024 and 2023 was $35 and $112, related to the Employees Earnout Shares, respectively. As of March 31, 2024, there was $35 of unrecognized compensation expense related to the Employees Earnout Shares, that are expected to vest. That cost is expected to be recognized over a weighted average period of 0.09 years as of March 31, 2024. As of March 31, 2024, none of the Employee Earnout Shares have vested. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company evaluates contingencies based upon available evidence. In addition, allowances for losses are provided each year for disputed items which have continuing significance. The Company believes that allowances for losses have been provided to the extent necessary, and that its assessment of contingencies is reasonable. Due to the inherent uncertainties and subjectivity involved in accounting for contingencies, there is at least a reasonable possibility that recorded estimates will change by a material amount in the near term. To the extent that the resolution of contingencies results in amounts which vary from management’s estimates, future operating results will be charged or credited. The principal commitments and contingencies are described below. Legal Matters The Company is subject to certain outside claims and litigation arising in the ordinary course of business. In the opinion of Management, the outcome of such matters will not have a material effect on the Company’s condensed consolidated financial statements. Loss contingencies entail uncertainty and a possibility of loss to an entity. If the loss is probable and the amount of loss can be reasonably estimated, the loss should be accrued according to ASC No. 450-20, Disclosure of Certain Loss Contingencies . Indemnities The Company’s Amended and Restated Certificate of Incorporation and and amended and restated bylaws require it, among other things, to indemnify the director or officer against specified expenses and liabilities, such as attorneys’ fees, judgments, fines, and settlements, paid by the individual in connection with any action, suit, or proceeding arising out of the individual’s status or service as its director or officer, other than liabilities arising from willful misconduct or conduct that is knowingly fraudulent or deliberately dishonest, and to advance expenses incurred by the individual in connection with any proceeding against the individual with respect to which the individual may be entitled to indemnification by the Company. The Company also indemnifies its lessor in connection with its facility lease for certain claims arising from the use of the facilities. These indemnities do not provide for any limitation of the maximum potential future payments it could be obligated to make. Historically, the Company has not incurred any payments for these obligations and, therefore, no liabilities have been recorded for these indemnities in the accompanying condensed consolidated balance sheets. The Health Insurance Portability and Accountability Act The Health Insurance Portability and Accountability Act (“HIPAA”) assures health insurance portability, reduces healthcare fraud and abuse, guarantees security and privacy of health information, and enforces standards for health information. Organizations are required to be in compliance with HIPAA provisions. The Health Information Technology for Economic and Clinical Health Act (“HITECH”) imposes notification requirements in the event of certain security breaches relating to protected health information. Organizations are subject to significant fines and penalties if found not to be compliant with the provisions outlined in the regulations. The Company believes it is in compliance with these laws. Regulatory Matters Laws and regulations governing the Medicare program and healthcare generally, are complex and subject to interpretation. The Company believes that it is in compliance with all applicable laws and regulations and is not aware of any pending or threatened investigations involving allegations of potential wrongdoing. While no regulatory inquiries have been made, compliance with such laws and regulations can be subject to future government review and interpretation as well as significant regulatory action including fines, penalties, and exclusion from the Medicare and Medi-Cal programs. Many of the Company’s payor and provider contracts are complex in nature and may be subject to differing interpretations regarding amounts due for the provision of medical services. Such differing interpretations may not come to light until a substantial period of time has passed following contract implementation. Liabilities for claims disputes are recorded when the loss is probable and can be estimated. Any adjustments to reserves are reflected in current operations. The Company does not have any reserves for regulatory matters as of March 31, 2024 and December 31, 2023. Liability Insurance The Company believes that its insurance coverage is appropriate based upon the Company’s claims experience and the nature and risks of the Company’s business. In addition to the known incidents that have resulted in the assertion of claims, the Company cannot be certain that its insurance coverage will be adequate to cover liabilities, arising out of claims asserted against the Company or the Company’s affiliated professional organizations, in the future where the outcomes of such claims are unfavorable. The Company believes that the ultimate resolution of all pending claims, including liabilities in excess of the Company’s insurance coverage, will not have a material adverse effect on the Company’s financial position, results of operations or cash flows; however, there can be no assurance that future claims will not have such a material adverse effect on the Company’s business. Contracted physicians are required to obtain their own insurance coverage. Guarantees The Company, along with certain of the Company's subsidiaries from time to time party to the Facility Agreement (“Guarantors”), have pledged a first priority perfected lien on substantially all of their respective personal and real property, as collateral security for the payment of outstanding obligations, under the Facility Agreement. |
Business Combinations
Business Combinations | 3 Months Ended |
Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | Business Combinations During the year ended December 31, 2023, the Company closed on two business combinations. There were no business combinations or asset acquisitions during the three months ended March 31, 2024. Practice Acquisitions For the acquisition of various clinical practices, the Company applied the acquisition method of accounting, where the total purchase price was allocated, or preliminarily allocated, to the tangible and intangible assets acquired and liabilities assumed, based on their fair values as of the acquisition dates. Southland Practice Acquisition On June 5, 2023 ("Southland Acquisition Date"), the Company acquired certain non-clinical assets of Covina Cancer Care Medical Center Inc. d/b/a Southland Radiation Oncology Network from Arvind Lapsiwala, M.D. (“Dr. Arvind”). Intangible assets of $2,844 were provisionally recognized pursuant to the acquisition in the form of payor contracts and non-compete agreements with a weighted average amortization period of 18 and 5 years, respectively. The Company transferred purchase considerations that consisted of $4,300 in cash paid upon closing and contingent consideration of $2,072. The deferred contingent cash consideration represents a fixed amount that is contingent upon the non-cancellation of the Transition Services Agreement by the seller. The fair value of the deferred cash consideration liability was determined to be $1,813 at the acquisition date. The contingent cash consideration is to be paid in full on the first anniversary of the transaction closing date (June 5, 2024), pending non-cancellation of the services agreement. The Southland Practice Acquisition was determined to constitute a business combination in accordance with ASC 805. The deferred cash consideration liability will be remeasured at each reporting period until the contingent milestone is achieved or the liability is settled. Any changes in the fair value of the deferred cash consideration liability will be provisionally recognized in the Condensed Consolidated Statements of Operations. The Company recognized $36 and $131 for the three months ended March 31, 2024 and for the year ended December 31, 2023, respectively, in the Condensed Consolidated Statements of Operations for the change in fair value for the deferred cash consideration liability. The fair value of the deferred cash consideration liability was $1,980 and $1,944 at March 31, 2024 and December 31, 2023, respectively. Bolsa Pharmacy Acquisition On November 28, 2023 ("Bolsa Acquisition Date"), the Company acquired certain clinical and non-clinical assets of Bolsa Medical Pharmacy. Intangible assets of $113 were provisionally recognized pursuant to the acquisition in the form of clinical contracts and licenses with a weighted average amortization period of 10 and 2 years, respectively. The Company transferred purchase consideration of $157 in cash paid upon closing. The Bolsa Practice Acquisition was determined to constitute a business combination in accordance with ASC 805. Summary of Consideration Transferred Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the estimated future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Such assets include synergies we expect to achieve, such as the use of our existing infrastructure to support the added membership, and future economic benefits arising from the assembled workforce. The purchase consideration for the acquisitions has been allocated under the acquisition method of accounting to the estimated fair market value of the net assets acquired including a residual amount of tax deductible goodwill as noted in the provisional fair value table below. There were no acquisition costs for the three months ended March 31, 2024 and 2023, respectively, that would be recorded as “General and administrative expenses” in the accompanying Condensed Consolidated Statements of Operations. The following table summarizes the provisional fair values assigned to identifiable assets acquired and liabilities assumed. (in thousands) Southland provisional Bolsa provisional Total Consideration: Cash $ 4,300 $ 157 $ 4,457 Deferred 1,813 — 1,813 Fair value of total consideration transferred 6,113 157 6,270 Estimated fair value of identifiable assets acquired and liabilities assumed: Inventory $ — $ 32 $ 32 Property and equipment 590 12 602 Operating right of use assets 4,246 44 4,290 Clinical contracts and noncompetes 2,844 113 2,957 Goodwill 2,679 — 2,679 Total assets acquired 10,359 201 10,560 Current portion of operating lease liabilities 378 27 405 Operating lease liabilities 3,868 17 3,885 Total liabilities assumed 4,246 44 4,290 Net assets acquired $ 6,113 $ 157 $ 6,270 The establishment of the allocation to goodwill requires the extensive use of accounting estimates and management judgement. The fair values assigned to the assets acquired are based on estimates and assumptions from data that is readily available. The Company recognized $12,930 cumulative revenue and $2,244 cumulative net income in its Condensed Consolidated Statement of Operations for the three months ended March 31, 2024 related to clinical practices acquired in prior year. |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities The Company prepares its condensed consolidated financial statements in accordance with Accounting Standards Codification Topic No. 810, Consolidations (“ASC 810”), which provides for the consolidation of VIEs of which an entity is the primary beneficiary. Pursuant to the MSAs established with the TOI PCs, TOI Management is entitled to receive a management fee, which represents a variable interest in and the right to receive the benefits of the TOI PCs. Through the terms of the MSAs, TOI Management receives the right to direct the most significant activities of the TOI PCs. Therefore, the TOI PCs are variable interest entities and TOI Management is the primary beneficiary that consolidates the TOI PCs, and their subsidiaries. The condensed consolidated financial statements include the accounts of TOI and its subsidiaries and VIEs. All inter-company profits, transactions, and balances have been eliminated upon consolidation. The following summarizes the assets and liabilities of the VIEs included in the accompanying condensed consolidated balance sheets. (in thousands) March 31, 2024 December 31, 2023 Assets Current assets: Cash $ 2,046 $ 2,282 Accounts receivable, net 58,760 45,175 Other receivables 129 129 Inventories 11,554 13,646 Prepaid expenses and other current assets 1,227 1,136 Total current assets 73,716 62,368 (in thousands) March 31, 2024 December 31, 2023 Property and equipment, net 95 105 Other assets 533 525 Intangible assets, net 5,580 5,628 Goodwill 2,679 2,679 Total assets $ 82,603 $ 71,305 Liabilities Current liabilities: Accounts payable $ 18,719 $ 12,729 Accrued expenses and other current liabilities 11,972 8,413 Amounts due to affiliates 210,592 189,048 Total current liabilities 241,283 210,190 Other non-current liabilities 117 211 Deferred income taxes liability 21 21 Total liabilities $ 241,421 $ 210,422 Single physician holders, who are officers of the Company, retain equity ownership in TOI CA, TOI FL and TOI TX, which represents nominal noncontrolling interests. The noncontrolling interests do not participate in the profit or loss of TOI CA, TOI FL or TOI TX, however. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The Company accounts for goodwill at acquisition-date fair value and other intangible assets at acquisition-date fair value less accumulated amortization. See Note 2 for a summary of the Company’s policies relating to goodwill and intangible assets. Intangible Assets As of March 31, 2024, the Company’s intangible assets, net consists of the following: (in thousands) Weighted average amortization period Gross carrying amount Accumulated amortization Net carrying amount Intangible assets Amortizing intangible assets: Payor contracts 13 years $ 22,191 $ (10,524) $ 11,667 Trade names 10 years 6,650 (2,757) 3,893 Clinical contracts and noncompete agreements 8 years 3,191 (1,620) 1,571 Total intangible assets $ 32,032 $ (14,901) $ 17,131 As of December 31, 2023, the Company’s intangible assets, net consists of the following: (in thousands) Weighted average amortization period Gross carrying amount Accumulated amortization Net carrying amount Intangible assets Amortizing intangible assets: Payor contracts 13 years $ 22,191 $ (10,014) $ 12,177 Trade names 10 years 6,650 (2,594) 4,056 Clinical contracts and noncompete agreements 8 years 3,191 (1,520) 1,671 Total intangible assets $ 32,032 $ (14,128) $ 17,904 The estimated aggregate amortization expense for each of the five succeeding fiscal years as of March 31, 2024 is as follows: (in thousands) Amount Year ending December 31: 2024 (remaining nine months) $ 2,321 2025 3,091 2026 3,060 2027 2,933 2028 2,828 Thereafter 2,898 Total $ 17,131 The aggregate amortization expense during the three months ended March 31, 2024 and 2023 was $774 and $728, respectively. Goodwill The Company evaluates goodwill at the reporting unit level, which, for the Company, is at the level of the reportable segments, dispensary, patient services, and clinical trials & other. The goodwill allocated to each of the reporting units as of March 31, 2024 and December 31, 2023 is as follows: (in thousands) March 31, 2024 December 31, 2023 Patient services $ 2,679 $ 2,679 Dispensary 4,551 4,551 Clinical trials & other — — Total goodwill $ 7,230 $ 7,230 The changes in the carrying amount of goodwill for the three months ended March 31, 2024 and for the year ended December 31, 2023 are as follows: (in thousands) March 31, 2024 December 31, 2023 Balance as of January 1 $ 7,230 $ 21,418 Goodwill acquired — 2,679 Goodwill impairment charges (see Note 2 and Note 7) — (16,867) The end of the period $ 7,230 $ 7,230 |
Net Loss Per Share
Net Loss Per Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share The following table sets forth the computation of the Company's basic net loss per share to common stockholders for the three months ended March 31, 2024 and 2023. (in thousands, except share data) Three Months Ended March 31, 2024 2023 Net loss attributable to TOI $ (19,889) $ (29,998) Less: Deemed dividend — — Net loss attributable to TOI available for distribution (19,889) (29,998) Net loss attributable to participating securities, basic (3,617) (5,504) Net loss attributable to common stockholders, basic $ (16,272) $ (24,494) Weighted average common shares outstanding, basic 74,234,287 73,449,132 Net loss income per share attributable to common stockholders, basic $ (0.22) $ (0.33) The following table sets forth the computation of the Company's diluted net loss per share to common stockholders for the three months ended March 31, 2024 and 2023. (in thousands, except share data) Three Months Ended March 31, 2024 2023 Net loss attributable to TOI $ (19,889) $ (29,998) Less: Deemed dividend — — Net loss attributable to TOI available for distribution (19,889) (29,998) Net loss attributable to participating securities, diluted (3,617) (5,504) Net loss attributable to common stockholders, diluted $ (16,272) $ (24,494) Weighted average common shares outstanding, basic 74,234,287 73,449,132 Dilutive effect of stock options — — Weighted average shares outstanding, diluted 74,234,287 73,449,132 Net loss per share attributable to common stockholders, diluted $ (0.22) $ (0.33) The following potentially dilutive outstanding securities were excluded from the computation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented: Three Months Ended March 31, 2024 2023 Convertible note 12,839,967 12,839,967 Stock options 8,380,837 9,832,667 RSUs 1,976,406 3,581,977 Medical RSUs — 447,012 Earnout Shares 1,401,064 1,401,064 Public Warrants 5,749,986 5,749,986 Private Warrants 3,177,542 3,177,542 |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company operates its business and reports its results through three operating and reportable segments: dispensary, patient services, and clinical trials & other in accordance with ASC 280. See Note 2 for a summary of the Company’s policy on segment information. Summarized financial information for the Company’s segments is shown in the following tables: (in thousands) Three Months Ended March 31, 2024 2023 Revenue Patient services $ 52,453 $ 50,273 Dispensary 39,679 24,240 Clinical trials & other 2,534 1,679 Consolidated revenue $ 94,666 $ 76,192 Direct costs Patient services $ 49,497 $ 42,814 Dispensary 32,809 19,145 Clinical trials & other 391 134 Total segment direct costs $ 82,697 $ 62,093 Depreciation expense Patient services $ 515 $ 406 (in thousands) Three Months Ended March 31, 2024 2023 Dispensary 31 16 Total segment depreciation expense $ 546 $ 422 Amortization of intangible assets Patient services $ 718 $ 675 Clinical trials & other 55 52 Total segment amortization $ 773 $ 727 Operating income Patient services $ 1,723 $ 6,378 Dispensary 6,839 5,079 Clinical trials & other 2,088 1,493 Total segment operating income $ 10,650 $ 12,950 Goodwill impairment charges Patient services $ — $ 16,235 Clinical trials & other — 632 Total impairment charges $ — $ 16,867 Selling, general and administrative expense $ 28,452 $ 28,830 Non-segment depreciation and amortization 170 120 Total consolidated operating loss $ (17,972) $ (32,867) (in thousands) March 31, 2024 December 31, 2023 Assets Patient services $ 77,996 $ 73,551 Dispensary 18,256 8,378 Clinical trials & other 9,884 8,878 Non-segment assets 98,396 118,433 Total assets $ 204,532 $ 209,240 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Related party transactions include payments for consulting services provided to the Company, clinical trials, board fees and expenses. Related party payments for the three months ended March 31, 2024 and 2023 were as follows: (in thousands) Three Months Ended March 31, Type 2024 2023 American Institute of Research Consulting $ — $ 15 Karen M Johnson Board Fees 19 13 Anne M. McGeorge Board Fees 19 13 Mohit Kaushal Board Fees 19 15 Ravi Sarin Board Fees — 13 Maeve O'Meara Duke Board Fees 19 13 M33 Growth LLC (Gabe Ling) Board Fees 21 13 Mark L. Pacala Board Fees 19 13 Richy Agajanian MD Clinical Trials — 2 Brad Hively Board Fees 19 — Total $ 135 $ 110 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of TOI, its subsidiaries, all of which are controlled by TOI through majority voting control, and variable interest entities (“VIEs”) for which TOI (through TOI Management) is the primary beneficiary. The Company consolidates entities in which it has a controlling financial interest based on either the variable interest entity or voting interest model. All significant intercompany balances and transactions have been eliminated in consolidation. |
Variable Interest Entities | Variable Interest Entities The Company consolidates entities for which it has a variable interest and is determined to be the primary beneficiary. Noncontrolling interests in less-than-wholly-owned consolidated subsidiaries of the Company are presented as a component of total equity to distinguish between the interests of the Company and the interests of the noncontrolling owners. Revenues, expenses, and net income or losses from these subsidiaries are included in the consolidated amounts as presented on the Condensed Consolidated Statements of Operations. The Company holds variable interests in TOI PCs, which it cannot legally own, as a result of entering into master services agreements ("MSAs"). As of March 31, 2024, |
Business Combinations | Business Combinations The Company accounts for all transactions that represent business combinations using the acquisition method of accounting under Accounting Standards Codification ("ASC") Topic No. 805, Business Combinations (“ASC 805”). The Company first assesses whether an acquisition constitutes a business combination or asset acquisition by applying the screening test and analyzing whether the acquired entity has substantive inputs, processes, and the ability to produce outputs. Upon concluding an acquisition is a business combination, per ASC 805, the identifiable assets acquired, the liabilities assumed, and any noncontrolling interest in the acquired entity are recognized and measured at their fair values on the date an acquirer obtains control of the acquiree. Such fair values that are not finalized for reporting periods following the acquisition date are estimated and recorded as provisional amounts. Adjustments to these provisional amounts during the measurement period (defined as the date through which all information required to identify and measure the consideration transferred, the assets acquired, the liabilities assumed, and the noncontrolling interests obtained, limited to one year from the acquisition date) are recorded when identified. Goodwill is determined as the excess of the fair value of the consideration exchanged in the acquisition over the fair value of the net assets acquired. |
Segment Reporting | Segment Reporting The Company presents the financial statements by segment in accordance with ASC Topic No. 280, Segment Reporting (“ASC 280”) to provide investors with transparency into how the chief operating decision maker (“CODM”) manages the business. The Company determined the CODM is its Chief Executive Officer. The CODM reviews financial information and allocates resources across three operating segments: patient services, dispensary, and clinical trials & other. Each of the operating segments is also a reporting segment as described further in Note 20. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates under different assumptions or conditions. Significant items subject to such estimates and assumptions include judgements related to revenue recognition, estimated accounts receivable and the allowance for credit losses, useful lives and recoverability of long-lived and intangible assets, recoverability of goodwill, fair values of acquired identifiable assets and assumed liabilities in business combinations, fair value of intangible assets and goodwill, fair value of share-based compensation, fair value of liability classified instruments, and judgements related to deferred income taxes. |
Net Income (Loss) Per Share | Net Income (Loss) Per Share Basic and diluted net income (loss) per share attributable to common stockholders is presented in conformity with the two-class method required for participating securities. The Company's Series A Convertible Preferred Stock is classified as a participating security in accordance with ASC 260. Under the two-class method, basic and diluted net income (loss) per share attributable to common stockholders is computed by dividing the basic and diluted net income (loss) attributable to common stockholders by the basic and diluted weighted-average number of shares of common stock outstanding during the period. Diluted net income per share attributable to common stockholders adjusts basic net income per share for the potentially dilutive impact of stock options, restricted stock units, Medical RSUs (defined in Note 14), earnout shares (defined in Note 14), public warrants, private placement warrants, and Senior Secured Convertible Notes (defined in Note 11). The treasury stock method is used to calculate the potentially dilutive effect of stock options, RSUs, public warrants, and private placement warrants. The if-converted method is used to calculate the potentially dilutive effect of the Senior Secured Notes. In both methods, diluted net income (loss) attributable to common stockholders and diluted weighted-average shares outstanding are adjusted to account for the impact of the assumed issuance of potential common shares that are dilutive, subject to dilution sequencing rules. The earnout shares are contingently issuable; therefore, the earnout shares are excluded from basic and diluted net income (loss) per share until the market conditions have been met (see more detail on the earnout shares in Note 14). The Medical RSUs are also contingently issuable; therefore, they are excluded from basic net income (loss) per share until the performance and service conditions have been met (see more detail in Note 14). Further, the number of contingently issuable Medical RSUs included in diluted net income (loss) per share is based on the number of shares, if any, that would be issuable if the end of the reporting period were the end of the contingency period and if the result would be dilutive. For the periods presented, the public and private placement warrants are out of the money; therefore, the public and private placement warrants are antidilutive and excluded from diluted net loss per share. |
Fair Value Measurements | Fair Value Measurements The Company accounts for fair value measurements under ASC Topic No. 820, Fair Value Measurements (“ASC 820”). The Company uses valuation approaches that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels (see Note 7 for further discussion): Level 1 inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. Level 2 inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. Level 3 inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. The Company's fair value measurement methodology for cash and cash equivalents, accounts receivable, other receivables, and accounts payable approximates fair value because of the short maturity and high liquidity of these instruments. Fair value measurement of investment securities available for sale is based upon quoted prices from active markets, if available (Level 1). If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation methodologies. Level 2 investment securities include US Treasuries purchased in the secondary market that use pricing inputs other than quoted prices in active markets and fair value is determined using pricing models or other valuation methodologies such as broker price indications, which are based on quoted prices for identical or similar notes, which are Level 2 input measures. Contingent considerations are valued using a present value factor using credit rating yields which are considered to be a Level 3 fair value measurement. Fair value measurements used for the goodwill and intangible assets are based on the discounted cash flow method within the income approach and guideline public company method to value the reporting units, which is considered to be a Level 3 fair value measurement. The unobservable inputs utilized in determining the fair value of goodwill based on the income approach primarily include estimated future cash flows, discounted at a rate that approximates the cost of capital of a market participant. Inputs used to calculate the fair value based on the market approach include the revenue and EBITDA multiples based on guidelines for similar publicly traded companies and recent transactions. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash primarily consists of deposits with banking institutions. |
Accounts Receivable and Allowance for Credit Losses | Accounts Receivable and Allowance for Credit Losses The Company’s accounts receivables are recorded and stated at the amount expected to be collected determined by each payor, net of an allowance for credit losses, under ASC Topic No. 310, Receivables (“ASC 310”). In accordance with ASC Topic No. 326, Financial Instruments — Credit Losses |
Goodwill | Goodwill The Company accounts for goodwill under Accounting Standards Codification Topic No. 350, Intangibles - Goodwill and Other (“ASC 350”). Goodwill represents the excess of the aggregate purchase price paid over the fair value of the net assets acquired in our business combinations. Goodwill is not amortized but is required to be evaluated for impairment at least annually or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The Company performs its annual testing of impairment for goodwill in the fourth quarter of each year. When impairment indicators are identified, the Company compares the reporting unit’s fair value to its carrying amount, including goodwill. An impairment loss is recognized as the difference, if any, between the reporting unit’s carrying amount and its fair value to the extent the difference does not exceed the total amount of goodwill allocated to the reporting unit. |
Debt | Debt The Company accounts for debt net of debt issuance costs and debt discount. Debt issuance costs and debt discount are capitalized, netted against the related debt for presentation purposes, and amortized to interest expense over the terms of the related debt using the effective interest method. The Company accounts for bifurcated, debt-classified embedded features separately as derivative liabilities pursuant to ASC Topic No. 815, Derivatives and Hedging |
Investments in Marketable Securities | Investments in Marketable Securities The Company's investments in marketable securities are classified as available-for-sale and are carried at fair value. The Company accounts for its investment securities available for sale using the fair value election pursuant to ASC 825, Financial Instruments ("ASC 825"), where changes in fair value are recorded in unrealized gains (losses), net on the Company's Condensed Consolidated Statements of Operations. The Company determines the appropriate classification of these investments at the time of purchase and reevaluates such designation at each balance sheet date. The Company’s marketable securities are classified as current assets if the maturity date is less than one year from the balance sheet date. Interest income and accretion on marketable securities are included in interest income in the Consolidated Statements of Operations. Realized gains and losses on sales of securities, and other-than-temporary declines in the fair value of marketable securities, if any, are included as a component of other income (expense), net in the Condensed Consolidated Statements of Operations. The cost of securities sold is based on the First In, First Out method. At each reporting period, the Company evaluates available-for-sale marketable securities, to the extent the fair value option is not elected, for any credit-related impairment when the fair value of the investment is less than its amortized cost. If the Company determines that the decline in fair value is below the carrying value and this decline is other-than-temporary, credit-related impairment is recognized in the Consolidated Statement of Operations in accordance with ASC 320, Debt Securities . As of March 31, 2024, there were no available-for-sale instruments for which the fair value option was not elected. |
Comprehensive Loss | Comprehensive Loss Comprehensive loss includes net loss to common stockholders as well as other changes in equity that result from transactions and economic events other than those with stockholders. There was no difference between comprehensive loss and net loss to common stockholders for the periods presented. |
Recently Issued and Adopted Accounting Standards | Recently Issued and Adopted Accounting Standards 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): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity ("ASU 2020-06"), which simplifies accounting for convertible instruments by removing major separation models required under current U.S. GAAP. ASU 2020-06 also removes certain settlement conditions that are required for equity-linked contracts to qualify for the derivative scope exception and it also simplifies the diluted earnings per share calculation in certain areas. The new standard is effective for the Company beginning January 1, 2024. The adoption of this standard did not have a material impact on our condensed consolidated financial statements as of March 31, 2024. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers ("ASU 2021-08"). Under ASU 2021-08, an acquirer must recognize, and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606, Revenue from Contract with Customers (“ASC 606”). The guidance is effective for interim and annual periods beginning after December 15, 2023, with early adoption permitted. The Company adopted ASU 2021-08 on January 1, 2024 on a prospective basis. On October 9, 2023, the FASB issued ASU 2023-06: Disclosure Improvements: Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative ("ASU 2023-06") , which amends the disclosure and presentation requirements related to various Codification subtopics. The ASU ("ASU 2023-06") was issued in response to the SEC’s August 2018 final rule that updates and simplifies disclosure requirements the SEC believed were “redundant, duplicative, overlapping, outdated, or superseded.” The new guidance is intended to align U.S. GAAP and SEC requirements while facilitating the application of U.S. GAAP for all entities. The effective date for each amendment will be the date on which the SEC’s removal of that related disclosure requirement from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. We are currently evaluating the impact of the guidance on our consolidated financial statements. In November 2023, the FASB issued ASU 2023-07 , Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ("ASU 2023-07") . The new standard requires a public entity to disclose significant segment expenses and other segment items on an annual and interim basis and provide, in interim periods, all disclosures about a reportable segment’s profit or loss and assets that are currently required annually. Additionally, it requires a public entity to disclose the title and position of the Chief Operating Decision Maker. The ASU ("ASU 2023-07") does not change how a public entity identifies its operating segments, aggregates them, or applies the quantitative thresholds to determine its reportable segments. The new standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. A public entity should apply the amendments in this ASU retrospectively to all prior periods presented in the financial statements. The Company expects this ASU to only impact our disclosures with no impacts to our results of operations, cash flows and financial condition. Moreover, in December 2023, the FASB issued ASU 2023-09 , Income Taxes (Topic 740): Improvement to Income Tax Disclosures ("ASU 2023-09") . The new standard requires a public business entity (PBE) to disclose, on an annual basis, a tabular rate reconciliation using both percentages and currency amounts, broken out into specified categories with certain reconciling items further broken out by nature and jurisdiction to the extent those items exceed a specified threshold. In addition, all entities are required to disclose income taxes paid, net of refunds received disaggregated by federal, state/local, and foreign and by jurisdiction if the amount is at least 5% of total income tax payments, net of refunds received. For PBEs, the new standard is effective for annual periods beginning after December 15, 2024, with early adoption permitted. An entity may apply the amendments in this ASU prospectively by providing the revised disclosures for the period ending December 31, 2025 and continuing to provide the pre-ASU disclosures for the prior periods, or may apply the amendments retrospectively by providing the revised disclosures for all period presented. The Company expects this ASU to only impact our disclosures with no impacts to our results of operations, cash flows, and financial condition. |
Significant Risks and Uncerta_2
Significant Risks and Uncertainties Including Business and Credit Concentrations (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Risks and Uncertainties [Abstract] | |
Summary of Concentration Risk | The concentration of net revenue on a percentage basis for major payors for the three months ended March 31, 2024 and 2023 are as follows: Three Months Ended March 31, 2024 2023 Percentage of Patient Services Net Revenue: Payor A N/A 11 % Payor B 15 % 15 % The concentration of cost of sales on a percentage basis for major vendors for the three months ended March 31, 2024 and 2023 are as follows: Three Months Ended March 31, 2024 2023 Percentage of Direct Costs: Vendor A 98 % 99 % The concentration of gross payables on a percentage basis for major payors at March 31, 2024 and December 31, 2023 are as follows: March 31, 2024 December 31, 2023 Percentage of Gross Payables: Vendor A 75 % 70 % |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Receivables [Abstract] | |
Summary of Accounts Receivable | Accounts Receivable as of March 31, 2024 and December 31, 2023 consist of the following: (in thousands) March 31, 2024 December 31, 2023 Oral drug accounts receivable (Dispensary) $ 12,380 $ 2,914 Capitated accounts receivable (Patient Services) 1,791 1,757 FFS accounts receivable (Patient Services) 35,230 30,173 Clinical trials accounts receivable 2,977 2,595 Other trade receivables 6,382 4,921 Total $ 58,760 $ 42,360 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Disaggregation of Revenue | The Company categorizes revenue based on various factors such as the nature of contracts, payors, order to billing arrangements, and cash flows received by the Company, as follows: (in thousands) Three Months Ended March 31, 2024 2023 Patient services Capitated revenue $ 17,667 $ 16,568 FFS revenue 34,786 33,705 Subtotal 52,453 50,273 Dispensary revenue 39,679 24,240 Clinical research trials and other revenue 2,534 1,679 Total $ 94,666 $ 76,192 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | The Company’s inventories as of March 31, 2024 and December 31, 2023 were as follows: (in thousands) March 31, 2024 December 31, 2023 Oral drug inventory $ 3,424 $ 3,640 IV drug inventory 8,130 10,038 Total $ 11,554 $ 13,678 |
Marketable Securities and Fai_2
Marketable Securities and Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Summary of Investment Securities Classified as Available-for-sale | The Company’s investments in marketable securities at March 31, 2024 and December 31, 2023 is as follows: March 31, 2024 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash equivalents: U.S. Treasury Bills $ 12,902 $ — $ (1) $ 12,901 Marketable securities: Short-term U.S. Treasuries $ 29,825 $ — $ (48) $ 29,777 Total available for sale securities $ 42,727 $ — $ (49) $ 42,678 December 31, 2023 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash equivalents: U.S. Treasury Bills $ 22,778 $ 5 $ — $ 22,783 Marketable securities: Short-term U.S. Treasuries $ 49,501 $ — $ (134) $ 49,367 Total available for sale securities $ 72,279 $ 5 $ (134) $ 72,150 The contractual maturities of the Company's investments in cash equivalents and marketable securities as of March 31, 2024 and December 31, 2023 is as follows: March 31, 2024 (in thousands) Due in One Year or Less Due After One Year through Five Years Due After Five Years Total Cash equivalents: U.S. Treasury Bills $ 12,901 $ — $ — $ 12,901 Marketable securities: Short-term U.S. Treasuries 29,777 $ — $ — 29,777 Total available for sale securities $ 42,678 $ — $ — $ 42,678 December 31, 2023 (in thousands) Due in One Year or Less Due After One Year through Five Years Due After Five Years Total Cash equivalents: U.S. Treasury Bills $ 22,783 $ — $ — $ 22,783 Marketable securities: Short-term U.S. Treasuries 49,367 — — 49,367 Total available for sale securities $ 72,150 $ — $ — $ 72,150 |
Summary of Carrying Amounts of Financial Instruments | The following table presents the carrying amounts of the Company’s recurring and non-recurring fair value measurements at March 31, 2024 and December 31, 2023: March 31, 2024 (in thousands) Total Level 1 Level 2 Level 3 Financial assets: Cash equivalents $ 12,901 $ — $ 12,901 — Marketable securities 29,777 — 29,777 — Financial liabilities: Derivative warrant liabilities $ 636 $ — $ 636 $ — Conversion option derivative liabilities 3,082 — — 3,082 Contingent consideration liability 1,980 — 1,980 — There were no transfers between levels for the three months ended March 31, 2024. As of December 31, 2023, derivative warrant liabilities of $636 were transferred from a Level 3 to a Level 2 financial instrument as a result of the valuation being based on the market price of our public warrants, which management considers to be a similar and comparable instrument, as compared to the previous valuation which was based on the Binomial Lattice Model. December 31, 2023 (in thousands) Total Level 1 Level 2 Level 3 Financial assets: Cash equivalents $ 22,783 $ — $ 22,783 $ — Marketable securities 49,367 — 49,367 — Financial liabilities: Derivative warrant liabilities $ 636 $ — $ 636 $ — Conversion option derivative liabilities 3,082 — — 3,082 Contingent consideration liability 1,944 — 1,944 — Non-recurring fair value measurement: Goodwill $ 7,230 — — $ 7,230 |
Summary of Changes in Fair Value of Level 3 Warrant Liabilities | The following table presents information about the Company’s financial liabilities that are measured at fair value on a recurring basis at March 31, 2024: (in thousands) Derivative Earnout Liabilities Conversion Option Derivative Liabilities Balance at December 31, 2022 $ 803 $ 3,960 Decrease in fair value included in other expense (803) (878) Balance at December 31, 2023 $ — $ 3,082 Change in fair value included in other expense — — Balance at March 31, 2024 $ — $ 3,082 |
Schedule of Assumptions used in the Valuation of Derivative Liabilities | A summary of the Level 3 fair value measurements inputs used in the valuations is as follows: March 31, 2024 First Tranche Earnout Second Tranche Earnout Convertible Note Warrant Derivative Liability Conversion Option Derivative Liabilities Unit price $ 1.58 $ 1.58 $ 1.58 $ 1.58 Term (in years) 0.62 0.62 3.36 3.36 Volatility 65.20 % 65.20 % 73.10 % 73.10 % Risk-free rate 5.20 % 5.20 % 4.30 % 4.30 % Dividend yield — — — — Cost of equity 16.50 % 16.50 % — — December 31, 2023 First Tranche Earnout Second Tranche Earnout Convertible Note Warrant Derivative Liability Conversion Option Derivative Liability Unit price $ 2.04 $ 2.04 $ 2.04 $ 2.04 Term (in years) 0.87 0.87 3.61 3.61 Volatility 49.40 % 49.40 % 58.60 % 58.60 % Risk-free rate 4.90 % 4.90 % 3.90 % 3.90 % Dividend yield — — — — Cost of equity 16.90 % 16.90 % 0.00 % 0.00 % |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment, Net | Property and equipment , net, consist of the following: (in thousands) Useful lives March 31, 2024 December 31, 2023 Computers and software 60 months $ 3,433 $ 3,035 Office furniture 84 months 738 724 Leasehold improvements Shorter of lease term or estimated useful life 9,672 9,214 Medical equipment 60 months 2,144 2,082 Construction in progress 1,695 1,801 Finance lease ROU assets Shorter of lease term or estimated useful life 207 207 Less: accumulated depreciation (6,894) (6,180) Total property and equipment, net $ 10,995 $ 10,883 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current and Non-Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities as of March 31, 2024 and December 31, 2023 consist of the following: (in thousands) March 31, 2024 December 31, 2023 Compensation, including bonuses, fringe benefits, and payroll taxes $ 6,951 $ 5,518 Contract liabilities 964 545 Directors and officers insurance premiums — 1,002 Deferred acquisition and contingent consideration (see Note 16) 2,261 2,206 Accrued interest 1,112 1,124 Other liabilities 7,075 3,601 Total accrued expenses and other current liabilities $ 18,363 $ 13,996 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Summary of Lease, Cost | The components of lease expense were as follows for the three months ended March 31, 2024 and 2023: (in thousands) Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 Operating lease costs: $ 1,988 $ 1,762 Finance lease costs: Amortization of ROU asset $ 10 $ 20 Interest expense $ 2 $ 3 Other lease costs: Short-term lease costs $ — $ 31 Variable lease costs $ 361 $ 274 The following table provides certain cash flow and supplemental noncash information related to the Company's lease liabilities for the three months ended March 31, 2024 and 2023. (in thousands) Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities: Operating cash payment from operating leases $ 73 $ 1,581 Financing cash payments for finance leases 12 21 Lease liabilities arising from obtaining right-of-use assets: Operating leases $ 99 $ 1,550 Finance leases — 3 |
Summary of Lessee, Operating Lease, Liability, Maturity | The aggregate future lease payments for the Company's leases in years subsequent to March 31, 2024 are as follows: (in thousands) Operating Leases Finance Leases 2024 (remaining nine months) $ 6,218 $ 36 2025 7,825 42 2026 7,319 39 2027 5,866 29 2028 4,007 — Thereafter 6,243 — Total future lease payment $ 37,478 $ 146 Less: amount representing interest (6,028) (15) Present value of future lease payment (lease liabilities) $ 31,450 $ 131 Reported as: Lease liabilities, current $ 6,390 $ 41 Lease liabilities, noncurrent 25,060 90 Total lease liabilities $ 31,450 $ 131 |
Summary of Finance Lease, Liability, Fiscal Year Maturity | The aggregate future lease payments for the Company's leases in years subsequent to March 31, 2024 are as follows: (in thousands) Operating Leases Finance Leases 2024 (remaining nine months) $ 6,218 $ 36 2025 7,825 42 2026 7,319 39 2027 5,866 29 2028 4,007 — Thereafter 6,243 — Total future lease payment $ 37,478 $ 146 Less: amount representing interest (6,028) (15) Present value of future lease payment (lease liabilities) $ 31,450 $ 131 Reported as: Lease liabilities, current $ 6,390 $ 41 Lease liabilities, noncurrent 25,060 90 Total lease liabilities $ 31,450 $ 131 |
Summary of Weighted Average Discount Rates | The following table provides the weighted average remaining lease terms and weighted average discount rates for the Company's leases as of March 31, 2024 and 2023: March 31, 2024 March 31, 2023 Weighted-average remaining lease term (in years) Operating 5.14 5.19 Finance 3.29 3.56 Weighted-average discount rate Operating 6.54 % 5.23 % Finance 6.50 % 6.05 % |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Summary of long-term debt, net of unamortized debt issuance costs | The Senior Secured Convertible Note as of March 31, 2024 and December 31, 2023 consists of the following: (in thousands) March 31, 2024 December 31, 2023 Senior Secured Convertible Note, due August 9, 2027 $ 110,000 $ 110,000 Less: Unamortized debt issuance costs 2,718 2,875 Less: Unamortized debt discount 18,897 20,299 Long-term debt, net of unamortized debt discount and issuance costs $ 88,385 $ 86,826 |
Summary of Maturities of Long-Term Debt | The following table summarizes the stated debt maturity related to the Senior Secured Convertible Note as of March 31, 2024: (in thousands) 2024 (remaining nine months) $ — 2025 — 2026 — 2027 110,000 Total debt $ 110,000 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Weighted Average Assumptions used in the Black-Scholes-Merton Option-Pricing Model | The weighted average assumptions used in the Black-Scholes-Merton option-pricing model for the units granted during the three months ended March 31, 2023 Stock Options are provided in the following table: March 31, 2023 Valuation assumptions: Expected dividend yield — % Expected volatility 64.00 % Risk-free rate 3.40 % Expected term (years) 6.25 |
Summary of Stock Option Activity | Stock option activity during the three months ended March 31, 2024 and 2023 is as follows: Stock options Number of shares Weighted average exercise price Weighted average remaining contractual term (years) Aggregate intrinsic value (in thousands) Balance at January 1, 2024 8,525,262 $ 1.74 Granted — — Exercised (84,649) 0.86 Forfeited (59,776) 1.38 Expired — — Balance at March 31, 2024 8,380,837 $ 1.76 6.80 $ 5,006 Vested Options Exercisable at March 31, 2024 5,178,613 $ 1.49 6.04 $ 3,295 Stock options Number of shares Weighted average exercise price Weighted average remaining contractual term (years) Aggregate intrinsic value (in thousands) Balance at January 1, 2023 8,049,474 $ 2.14 Granted 1,948,354 0.48 Exercised — — Forfeited (163,414) 3.20 Expired (1,747) 1.08 Balance at March 31, 2023 9,832,667 $ 1.79 8.02 $ 384 Vested Options Exercisable at March 31, 2023 3,271,151 $ 1.33 6.68 $ — |
Summary of the Activity for the RSUs and RSAs | A summary of the activity for the RSUs for the three months ended March 31, 2024 and 2023, respectively, are shown in the following table: Three Months Ended March 31, 2024 2023 Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Unvested at beginning of year 2,176,422 $ 3.50 2,106,540 $ 7.25 Granted 6,787 2.14 1,863,539 0.48 Vested (83,020) 10.90 (331,675) 4.12 Forfeited (123,783) 6.71 (56,427) 6.63 Unvested at end of year 1,976,406 $ 2.98 3,581,977 $ 10.98 A summary of the activity for the equity-classified Medical RSUs for the three months ended March 31, 2024 and 2023, respectively, is shown in the following table: Three Months Ended March 31, 2024 2023 Balance at beginning of period — 147,470 Granted — 8,317 Vested — (155,787) Forfeited — — Balance at end of period — — |
Summary of Share-Based Payment Arrangement, Outstanding Award, Activity, Excluding Option | A summary of the activity for the Employees Earnout Shares for the three months ended March 31, 2024 and 2023 is shown in the following table: Three Months Ended March 31, 2024 2023 Outstanding at beginning of period 1,401,064 1,417,632 Granted — — Vested — — Forfeited — (16,568) Outstanding at end of period 1,401,064 1,401,064 |
Business Combinations (Tables)
Business Combinations (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Summary of Fair Value of Assets Acquired and Liabilities Assumed as Part of the Acquisition | The following table summarizes the provisional fair values assigned to identifiable assets acquired and liabilities assumed. (in thousands) Southland provisional Bolsa provisional Total Consideration: Cash $ 4,300 $ 157 $ 4,457 Deferred 1,813 — 1,813 Fair value of total consideration transferred 6,113 157 6,270 Estimated fair value of identifiable assets acquired and liabilities assumed: Inventory $ — $ 32 $ 32 Property and equipment 590 12 602 Operating right of use assets 4,246 44 4,290 Clinical contracts and noncompetes 2,844 113 2,957 Goodwill 2,679 — 2,679 Total assets acquired 10,359 201 10,560 Current portion of operating lease liabilities 378 27 405 Operating lease liabilities 3,868 17 3,885 Total liabilities assumed 4,246 44 4,290 Net assets acquired $ 6,113 $ 157 $ 6,270 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Consolidated Financial Statements of VIEs | The condensed consolidated financial statements include the accounts of TOI and its subsidiaries and VIEs. All inter-company profits, transactions, and balances have been eliminated upon consolidation. The following summarizes the assets and liabilities of the VIEs included in the accompanying condensed consolidated balance sheets. (in thousands) March 31, 2024 December 31, 2023 Assets Current assets: Cash $ 2,046 $ 2,282 Accounts receivable, net 58,760 45,175 Other receivables 129 129 Inventories 11,554 13,646 Prepaid expenses and other current assets 1,227 1,136 Total current assets 73,716 62,368 (in thousands) March 31, 2024 December 31, 2023 Property and equipment, net 95 105 Other assets 533 525 Intangible assets, net 5,580 5,628 Goodwill 2,679 2,679 Total assets $ 82,603 $ 71,305 Liabilities Current liabilities: Accounts payable $ 18,719 $ 12,729 Accrued expenses and other current liabilities 11,972 8,413 Amounts due to affiliates 210,592 189,048 Total current liabilities 241,283 210,190 Other non-current liabilities 117 211 Deferred income taxes liability 21 21 Total liabilities $ 241,421 $ 210,422 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets, Net | As of March 31, 2024, the Company’s intangible assets, net consists of the following: (in thousands) Weighted average amortization period Gross carrying amount Accumulated amortization Net carrying amount Intangible assets Amortizing intangible assets: Payor contracts 13 years $ 22,191 $ (10,524) $ 11,667 Trade names 10 years 6,650 (2,757) 3,893 Clinical contracts and noncompete agreements 8 years 3,191 (1,620) 1,571 Total intangible assets $ 32,032 $ (14,901) $ 17,131 As of December 31, 2023, the Company’s intangible assets, net consists of the following: (in thousands) Weighted average amortization period Gross carrying amount Accumulated amortization Net carrying amount Intangible assets Amortizing intangible assets: Payor contracts 13 years $ 22,191 $ (10,014) $ 12,177 Trade names 10 years 6,650 (2,594) 4,056 Clinical contracts and noncompete agreements 8 years 3,191 (1,520) 1,671 Total intangible assets $ 32,032 $ (14,128) $ 17,904 |
Summary of Estimated Aggregate Amortization Expense | The estimated aggregate amortization expense for each of the five succeeding fiscal years as of March 31, 2024 is as follows: (in thousands) Amount Year ending December 31: 2024 (remaining nine months) $ 2,321 2025 3,091 2026 3,060 2027 2,933 2028 2,828 Thereafter 2,898 Total $ 17,131 |
Summary of Goodwill and Changes in the Carrying Amount of Goodwill | The goodwill allocated to each of the reporting units as of March 31, 2024 and December 31, 2023 is as follows: (in thousands) March 31, 2024 December 31, 2023 Patient services $ 2,679 $ 2,679 Dispensary 4,551 4,551 Clinical trials & other — — Total goodwill $ 7,230 $ 7,230 The changes in the carrying amount of goodwill for the three months ended March 31, 2024 and for the year ended December 31, 2023 are as follows: (in thousands) March 31, 2024 December 31, 2023 Balance as of January 1 $ 7,230 $ 21,418 Goodwill acquired — 2,679 Goodwill impairment charges (see Note 2 and Note 7) — (16,867) The end of the period $ 7,230 $ 7,230 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Loss Per Share to Common Stockholders | The following table sets forth the computation of the Company's basic net loss per share to common stockholders for the three months ended March 31, 2024 and 2023. (in thousands, except share data) Three Months Ended March 31, 2024 2023 Net loss attributable to TOI $ (19,889) $ (29,998) Less: Deemed dividend — — Net loss attributable to TOI available for distribution (19,889) (29,998) Net loss attributable to participating securities, basic (3,617) (5,504) Net loss attributable to common stockholders, basic $ (16,272) $ (24,494) Weighted average common shares outstanding, basic 74,234,287 73,449,132 Net loss income per share attributable to common stockholders, basic $ (0.22) $ (0.33) The following table sets forth the computation of the Company's diluted net loss per share to common stockholders for the three months ended March 31, 2024 and 2023. (in thousands, except share data) Three Months Ended March 31, 2024 2023 Net loss attributable to TOI $ (19,889) $ (29,998) Less: Deemed dividend — — Net loss attributable to TOI available for distribution (19,889) (29,998) Net loss attributable to participating securities, diluted (3,617) (5,504) Net loss attributable to common stockholders, diluted $ (16,272) $ (24,494) Weighted average common shares outstanding, basic 74,234,287 73,449,132 Dilutive effect of stock options — — Weighted average shares outstanding, diluted 74,234,287 73,449,132 Net loss per share attributable to common stockholders, diluted $ (0.22) $ (0.33) |
Schedule of Computation of Diluted Net Loss Per Share | The following potentially dilutive outstanding securities were excluded from the computation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented: Three Months Ended March 31, 2024 2023 Convertible note 12,839,967 12,839,967 Stock options 8,380,837 9,832,667 RSUs 1,976,406 3,581,977 Medical RSUs — 447,012 Earnout Shares 1,401,064 1,401,064 Public Warrants 5,749,986 5,749,986 Private Warrants 3,177,542 3,177,542 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Summary of Financial Information for the Company's Segments | Summarized financial information for the Company’s segments is shown in the following tables: (in thousands) Three Months Ended March 31, 2024 2023 Revenue Patient services $ 52,453 $ 50,273 Dispensary 39,679 24,240 Clinical trials & other 2,534 1,679 Consolidated revenue $ 94,666 $ 76,192 Direct costs Patient services $ 49,497 $ 42,814 Dispensary 32,809 19,145 Clinical trials & other 391 134 Total segment direct costs $ 82,697 $ 62,093 Depreciation expense Patient services $ 515 $ 406 (in thousands) Three Months Ended March 31, 2024 2023 Dispensary 31 16 Total segment depreciation expense $ 546 $ 422 Amortization of intangible assets Patient services $ 718 $ 675 Clinical trials & other 55 52 Total segment amortization $ 773 $ 727 Operating income Patient services $ 1,723 $ 6,378 Dispensary 6,839 5,079 Clinical trials & other 2,088 1,493 Total segment operating income $ 10,650 $ 12,950 Goodwill impairment charges Patient services $ — $ 16,235 Clinical trials & other — 632 Total impairment charges $ — $ 16,867 Selling, general and administrative expense $ 28,452 $ 28,830 Non-segment depreciation and amortization 170 120 Total consolidated operating loss $ (17,972) $ (32,867) (in thousands) March 31, 2024 December 31, 2023 Assets Patient services $ 77,996 $ 73,551 Dispensary 18,256 8,378 Clinical trials & other 9,884 8,878 Non-segment assets 98,396 118,433 Total assets $ 204,532 $ 209,240 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Summary of Related Party Transactions | Related party payments for the three months ended March 31, 2024 and 2023 were as follows: (in thousands) Three Months Ended March 31, Type 2024 2023 American Institute of Research Consulting $ — $ 15 Karen M Johnson Board Fees 19 13 Anne M. McGeorge Board Fees 19 13 Mohit Kaushal Board Fees 19 15 Ravi Sarin Board Fees — 13 Maeve O'Meara Duke Board Fees 19 13 M33 Growth LLC (Gabe Ling) Board Fees 21 13 Mark L. Pacala Board Fees 19 13 Richy Agajanian MD Clinical Trials — 2 Brad Hively Board Fees 19 — Total $ 135 $ 110 |
Description of the Business (De
Description of the Business (Details) | 3 Months Ended |
Mar. 31, 2024 state oncologist clinicLocation | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Minimum number of oncologists and mid-level professionals within three states | oncologist | 126 |
Minimum number of clinic locations within three states | clinicLocation | 73 |
Number of states in which entity operates | state | 4 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 USD ($) segment | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Accounting Policies [Abstract] | |||
Number of operating segments | segment | 3 | ||
Accounts receivable, allowance for credit loss, current | $ 0 | $ 0 | |
Goodwill impairment charges | $ 0 | $ 16,867,000 | $ 16,867,000 |
Significant Risks and Uncerta_3
Significant Risks and Uncertainties Including Business and Credit Concentrations - Revenue Concentration Risk (Details) - Percentage of Net Revenue - Customer concentration | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Payor A | ||
Significant Risks and Uncertainties Including Business and Credit Concentrations | ||
Concentration risk percentage | 11% | |
Payor B | ||
Significant Risks and Uncertainties Including Business and Credit Concentrations | ||
Concentration risk percentage | 15% | 15% |
Significant Risks and Uncerta_4
Significant Risks and Uncertainties Including Business and Credit Concentrations - Vendor Concentration Risk (Details) - Supplier Concentration - Vendor A | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Cost of Goods and Service Benchmark | |||
Significant Risks and Uncertainties Including Business and Credit Concentrations | |||
Concentration risk percentage | 98% | 99% | |
Gross Payables | |||
Significant Risks and Uncertainties Including Business and Credit Concentrations | |||
Concentration risk percentage | 75% | 70% |
Accounts Receivable - Summary o
Accounts Receivable - Summary of Accounts Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 58,760 | $ 42,360 |
Oral drug accounts receivable (Dispensary) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 12,380 | 2,914 |
Capitated accounts receivable (Patient Services) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 1,791 | 1,757 |
FFS accounts receivable (Patient Services) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 35,230 | 30,173 |
Clinical trials accounts receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 2,977 | 2,595 |
Other trade receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 6,382 | $ 4,921 |
Accounts Receivable - Additiona
Accounts Receivable - Additional Information (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Jan. 01, 2023 | |
Receivables [Abstract] | ||||
Accounts receivable, allowance for credit loss, current | $ 0 | $ 0 | ||
Accounts receivable, remaining amount | $ 39,816,000 | |||
Accounts receivable, bad debt recovery | 0 | $ 10,000 | ||
Write-offs charged against the allowance | $ 0 | $ 11,000 |
Revenue - Summary of Disaggrega
Revenue - Summary of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Total operating revenue | $ 94,666 | $ 76,192 |
Patient services | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenue | 52,453 | 50,273 |
Capitated revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenue | 17,667 | 16,568 |
FFS revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenue | 34,786 | 33,705 |
Dispensary revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenue | 39,679 | 24,240 |
Clinical research trials and other revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total operating revenue | $ 2,534 | $ 1,679 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Jan. 01, 2023 | |
Revenue from Contract with Customer [Abstract] | ||||
Contract with customer, asset | $ 0 | $ 0 | ||
Contract liabilities | 964,000 | $ 545,000 | $ 1,139,000 | |
Revenue recognized | $ 0 | $ 264,000 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Inventory [Line Items] | ||
Total inventories | $ 11,554 | $ 13,678 |
Oral drug inventory | ||
Inventory [Line Items] | ||
Total inventories | 3,424 | 3,640 |
IV drug inventory | ||
Inventory [Line Items] | ||
Total inventories | $ 8,130 | $ 10,038 |
Marketable Securities and Fai_3
Marketable Securities and Fair Value Measurements - Summary of Investment Securities Classified as Available-for-sale (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | $ 42,727 | $ 72,279 |
Gross Unrealized Gains | 0 | 5 |
Gross Unrealized Losses | (49) | (134) |
Fair Value | 42,678 | 72,150 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost [Abstract] | ||
Due in One Year or Less | 42,678 | 72,150 |
Due After One Year through Five Years | 0 | 0 |
Due After Five Years | 0 | 0 |
Total | 42,678 | 72,150 |
U.S. Treasury Bills | Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 12,902 | 22,778 |
Gross Unrealized Gains | 0 | 5 |
Gross Unrealized Losses | (1) | 0 |
Fair Value | 12,901 | 22,783 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost [Abstract] | ||
Due in One Year or Less | 12,901 | 22,783 |
Due After One Year through Five Years | 0 | 0 |
Due After Five Years | 0 | 0 |
Total | 12,901 | 22,783 |
U.S. Treasury Bills | Short-term U.S. Treasuries | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 29,825 | 49,501 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (48) | (134) |
Fair Value | 29,777 | 49,367 |
Debt Securities, Available-for-Sale, Maturity, Allocated and Single Maturity Date, Amortized Cost [Abstract] | ||
Due in One Year or Less | 29,777 | 49,367 |
Due After One Year through Five Years | 0 | 0 |
Due After Five Years | 0 | 0 |
Total | $ 29,777 | $ 49,367 |
Marketable Securities and Fai_4
Marketable Securities and Fair Value Measurements - Additional Information (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 USD ($) security | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Assumptions used in the OPM and CSE models | |||
Net unrealized loss | $ 81,000 | ||
Debt securities, available-for-sale, number of positions in unrealized loss position | security | 2 | ||
Accrued interest receivable on cash equivalents and marketable securities | $ 60,000 | $ 242,000 | |
Debt Securities, Available-for-Sale, Accrued Interest, after Allowance for Credit Loss, Current, Statement of Financial Position [Extensible Enumeration] | Other receivables | Other receivables | |
Derivative warrant liabilities | $ 636,000 | $ 636,000 | |
Goodwill impairment charges | $ 0 | $ 16,867,000 | $ 16,867,000 |
Level 3 | Minimum | Measurement Input, Discount Rate | |||
Assumptions used in the OPM and CSE models | |||
Goodwill, measurement input | 0.450 | ||
Level 3 | Maximum | Measurement Input, Discount Rate | |||
Assumptions used in the OPM and CSE models | |||
Goodwill, measurement input | 0.550 |
Marketable Securities and Fai_5
Marketable Securities and Fair Value Measurements - Summary of Carrying Amounts of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Financial assets: | ||
Cash equivalents | $ 12,901 | |
Investment, Type [Extensible Enumeration] | Marketable securities | Marketable securities |
Financial liabilities: | ||
Derivative warrant liabilities | $ 636 | $ 636 |
Conversion option derivative liabilities | 3,082 | 3,082 |
Recurring | ||
Financial assets: | ||
Cash equivalents | 22,783 | |
Investments | 29,777 | 49,367 |
Financial liabilities: | ||
Derivative warrant liabilities | 636 | 636 |
Conversion option derivative liabilities | 3,082 | 3,082 |
Contingent consideration liability | 1,944 | |
Nonrecurring | ||
Financial liabilities: | ||
Contingent consideration liability | 1,980 | |
Non-recurring fair value measurement: | ||
Goodwill | 7,230 | |
Level 1 | ||
Financial assets: | ||
Cash equivalents | 0 | |
Level 1 | Recurring | ||
Financial assets: | ||
Cash equivalents | 0 | |
Investments | 0 | 0 |
Financial liabilities: | ||
Derivative warrant liabilities | 0 | 0 |
Conversion option derivative liabilities | 0 | 0 |
Contingent consideration liability | 0 | |
Level 1 | Nonrecurring | ||
Financial liabilities: | ||
Contingent consideration liability | 0 | |
Non-recurring fair value measurement: | ||
Goodwill | 0 | |
Level 2 | ||
Financial assets: | ||
Cash equivalents | 12,901 | |
Level 2 | Recurring | ||
Financial assets: | ||
Cash equivalents | 22,783 | |
Investments | 29,777 | 49,367 |
Financial liabilities: | ||
Derivative warrant liabilities | 636 | 636 |
Conversion option derivative liabilities | 0 | 0 |
Contingent consideration liability | 1,944 | |
Level 2 | Nonrecurring | ||
Financial liabilities: | ||
Contingent consideration liability | 1,980 | |
Non-recurring fair value measurement: | ||
Goodwill | 0 | |
Level 3 | ||
Financial assets: | ||
Cash equivalents | 0 | |
Level 3 | Recurring | ||
Financial assets: | ||
Cash equivalents | 0 | |
Investments | 0 | 0 |
Financial liabilities: | ||
Derivative warrant liabilities | 0 | 0 |
Conversion option derivative liabilities | 3,082 | 3,082 |
Contingent consideration liability | 0 | |
Level 3 | Nonrecurring | ||
Financial liabilities: | ||
Contingent consideration liability | $ 0 | |
Non-recurring fair value measurement: | ||
Goodwill | $ 7,230 |
Marketable Securities and Fai_6
Marketable Securities and Fair Value Measurements - Summary of Changes in Fair Value of Level 3 Warrant Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Derivative Earnout Liabilities | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 0 | $ 803 |
Change in fair value included in other expense | 0 | (803) |
Ending balance | 0 | 0 |
Conversion Option Derivative Liabilities | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 3,082 | 3,960 |
Change in fair value included in other expense | 0 | (878) |
Ending balance | $ 3,082 | $ 3,082 |
Marketable Securities and Fai_7
Marketable Securities and Fair Value Measurements - Schedule of Assumptions used in the Valuation of Derivative Liabilities (Details) | Mar. 31, 2024 $ / shares yr | Dec. 31, 2023 $ / shares yr |
Unit price | First Tranche Earnout | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value measurements inputs | $ / shares | 1.58 | 2.04 |
Unit price | Second Tranche Earnout | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value measurements inputs | $ / shares | 1.58 | 2.04 |
Unit price | Convertible Note Warrant Derivative Liability | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value measurements inputs | $ / shares | 1.58 | 2.04 |
Unit price | Conversion Option Derivative Liabilities | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value measurements inputs | $ / shares | 1.58 | 2.04 |
Term (in years) | First Tranche Earnout | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value measurements inputs | yr | 0.62 | 0.87 |
Term (in years) | Second Tranche Earnout | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value measurements inputs | yr | 0.62 | 0.87 |
Term (in years) | Convertible Note Warrant Derivative Liability | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value measurements inputs | yr | 3.36 | 3.61 |
Term (in years) | Conversion Option Derivative Liabilities | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value measurements inputs | yr | 3.36 | 3.61 |
Volatility | First Tranche Earnout | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value measurements inputs | 0.6520 | 0.4940 |
Volatility | Second Tranche Earnout | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value measurements inputs | 0.6520 | 0.4940 |
Volatility | Convertible Note Warrant Derivative Liability | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value measurements inputs | 0.7310 | 0.5860 |
Volatility | Conversion Option Derivative Liabilities | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value measurements inputs | 0.7310 | 0.5860 |
Risk-free rate | First Tranche Earnout | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value measurements inputs | 0.0520 | 0.0490 |
Risk-free rate | Second Tranche Earnout | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value measurements inputs | 0.0520 | 0.0490 |
Risk-free rate | Convertible Note Warrant Derivative Liability | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value measurements inputs | 0.0430 | 0.0390 |
Risk-free rate | Conversion Option Derivative Liabilities | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value measurements inputs | 0.0430 | 0.0390 |
Dividend yield | First Tranche Earnout | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value measurements inputs | 0 | 0 |
Dividend yield | Second Tranche Earnout | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value measurements inputs | 0 | 0 |
Dividend yield | Convertible Note Warrant Derivative Liability | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value measurements inputs | 0 | 0 |
Dividend yield | Conversion Option Derivative Liabilities | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value measurements inputs | 0 | 0 |
Cost of equity | First Tranche Earnout | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value measurements inputs | 0.1650 | 0.1690 |
Cost of equity | Second Tranche Earnout | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value measurements inputs | 0.1650 | 0.1690 |
Cost of equity | Convertible Note Warrant Derivative Liability | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value measurements inputs | 0 | 0 |
Cost of equity | Conversion Option Derivative Liabilities | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value measurements inputs | 0 | 0 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Property and Equipment, Net | ||
Less: accumulated depreciation | $ (6,894) | $ (6,180) |
Total property and equipment, net | $ 10,995 | 10,883 |
Computers and software | ||
Property and Equipment, Net | ||
Useful lives | 60 months | |
Property and equipment, gross | $ 3,433 | 3,035 |
Office furniture | ||
Property and Equipment, Net | ||
Useful lives | 84 months | |
Property and equipment, gross | $ 738 | 724 |
Leasehold improvements | ||
Property and Equipment, Net | ||
Property and equipment, gross | $ 9,672 | 9,214 |
Medical equipment | ||
Property and Equipment, Net | ||
Useful lives | 60 months | |
Property and equipment, gross | $ 2,144 | 2,082 |
Construction in progress | ||
Property and Equipment, Net | ||
Property and equipment, gross | 1,695 | 1,801 |
Finance lease ROU assets | ||
Property and Equipment, Net | ||
Property and equipment, gross | $ 207 | $ 207 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 715 | $ 541 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current and Non-Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Nov. 30, 2023 |
Payables and Accruals [Abstract] | |||
Compensation, including bonuses, fringe benefits, and payroll taxes | $ 6,951 | $ 5,518 | |
Contract liabilities | 964 | 545 | |
Directors and officers insurance premiums | 0 | 1,002 | $ 122 |
Deferred acquisition and contingent consideration (see Note 16) | 2,261 | 2,206 | |
Accrued interest | 1,112 | 1,124 | |
Other liabilities | 7,075 | 3,601 | |
Total accrued expenses and other current liabilities | $ 18,363 | $ 13,996 |
Accrued Expenses and Other Cu_4
Accrued Expenses and Other Current and Non-Current Liabilities - Additional Information (Details) $ in Thousands | Nov. 30, 2023 USD ($) installment | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) |
Payables and Accruals [Abstract] | |||
Financing arrangement | $ 1,250 | ||
Interest rate (as percent) | 8.75% | ||
Number of monthly installments | installment | 10 | ||
Directors and officers insurance premiums | $ 122 | $ 0 | $ 1,002 |
Accrued insurance | $ 1,002 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) clinicLocation | |
Lessee, Lease, Description [Line Items] | ||
Operating cash payment from operating leases | $ 73 | $ 1,581 |
Number of clinics lease term extensions | clinicLocation | 1 | |
Increase to operating lease liability | $ 491 | |
Increase to operating lease right-of-use asset | 500 | |
Increase to rent expense | $ 9 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, operating lease, term (in years) | 1 year | |
Operating cash payment from operating leases | $ 0 | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, operating lease, term (in years) | 10 years | |
Operating cash payment from operating leases | $ 62 |
Leases - Summary of Lease, Cost
Leases - Summary of Lease, Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Leases [Abstract] | ||
Operating lease costs: | $ 1,988 | $ 1,762 |
Amortization of ROU asset | 10 | 20 |
Interest expense | 2 | 3 |
Short-term lease costs | 0 | 31 |
Variable lease costs | $ 361 | $ 274 |
Leases - Summary of Lessee, Ope
Leases - Summary of Lessee, Operating Lease, Liability, Maturity and Finance Lease, Liability, Fiscal Year Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Operating Leases | ||
2024 (remaining nine months) | $ 6,218 | |
2025 | 7,825 | |
2026 | 7,319 | |
2027 | 5,866 | |
2028 | 4,007 | |
Thereafter | 6,243 | |
Total future lease payment | 37,478 | |
Less: amount representing interest | (6,028) | |
Present value of future lease payment (lease liabilities) | 31,450 | |
Lease liabilities, current | 6,390 | $ 6,363 |
Lease liabilities, noncurrent | 25,060 | $ 26,486 |
Finance Leases | ||
2024 (remaining nine months) | 36 | |
2025 | 42 | |
2026 | 39 | |
2027 | 29 | |
2028 | 0 | |
Thereafter | 0 | |
Total future lease payment | 146 | |
Less: amount representing interest | (15) | |
Present value of future lease payment (lease liabilities) | 131 | |
Lease liabilities, current | 41 | |
Lease liabilities, noncurrent | $ 90 | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Lease liabilities, current | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Lease liabilities, noncurrent |
Leases - Summary of Weighted Av
Leases - Summary of Weighted Average Discount Rates (Details) | Mar. 31, 2024 | Mar. 31, 2023 |
Weighted-average remaining lease term (in years) | ||
Operating | 5 years 1 month 20 days | 5 years 2 months 8 days |
Finance | 3 years 3 months 14 days | 3 years 6 months 21 days |
Weighted-average discount rate | ||
Operating | 6.54% | 5.23% |
Finance | 6.50% | 6.05% |
Leases - Supplemental Noncash I
Leases - Supplemental Noncash Information Related Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash payment from operating leases | $ 73 | $ 1,581 |
Financing cash payments for finance leases | 12 | 21 |
Operating leases | 99 | 1,550 |
Finance leases | $ 0 | $ 3 |
Leases (Details)
Leases (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) clinicLocation | |
Leases [Abstract] | |
Number of clinics lease term extensions | clinicLocation | 1 |
Liability increase (decrease) | $ 491 |
Increase to operating lease right-of-use asset | 500 |
Increase to rent expense | $ 9 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Aug. 09, 2022 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | ||||
Amortization of debt issuance costs and debt discount | $ 1,559,000 | $ 1,523,000 | ||
Convertible Notes | ||||
Debt Instrument [Line Items] | ||||
Amortization period of debt discount (in years) | 5 years | |||
Remaining amortization period of debt discount (in years) | 3 years 4 months 9 days | |||
Facility Agreement | ||||
Debt Instrument [Line Items] | ||||
Debt issuance costs | $ 4,924,000 | |||
Facility Agreement | Convertible Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 110,000,000 | |||
Interest rate (as a percent) | 4% | |||
Minimum unrestricted cash and cash equivalent balance | $ 40,000,000 | |||
Debt instrument, convertible, conversion price (in dollars per share) | $ 8.567 | |||
Conversion cap (in shares) | 14,663,019 | |||
Conversion of stock, shares issued | 0 | 0 | ||
Number of warrants outstanding (in shares) | 0 | 0 | ||
Proceeds from secured lines of credit | $ 110,000,000 | |||
Long-term debt | $ 88,385,000 | $ 86,826,000 | ||
Remaining amortization period of debt discount (in years) | 3 years 4 months 9 days | |||
Debt issuance costs | $ 3,663,000 | $ 2,718,000 | 2,875,000 | |
Amortization period of debt issuance cost (in years) | 5 years | |||
Effective yield (as a percent) | 13.38% | |||
Amortization of debt issuance costs and debt discount | $ 1,559,000 | 1,523,000 | ||
Interest accrued | 1,112,000 | 1,100,000 | ||
Accrued interest | $ 1,100,000 | $ 1,100,000 | $ 1,124,000 | |
Facility Agreement | Convertible Notes | Debt Instrument, Covenant, Period One | ||||
Debt Instrument [Line Items] | ||||
Minimum net quarterly revenues | $ 75,000,000 | |||
Facility Agreement | Convertible Notes | Debt Instrument, Covenant, Period Two | ||||
Debt Instrument [Line Items] | ||||
Minimum net quarterly revenues | 100,000,000 | |||
Facility Agreement | Convertible Note Warrant | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 0 | |||
Debt issuance costs | 0 | |||
Facility Agreement | Optional Redemption | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 0 | |||
Debt issuance costs | 0 | |||
Facility Agreement | Embedded Conversion Option Feature | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 28,160,000 | |||
Debt issuance costs | $ 1,260,000 |
Debt - Summary of Long-Term Deb
Debt - Summary of Long-Term Debt, Net of Unamortized Debt Issuance Costs (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Aug. 09, 2022 |
Debt Instrument [Line Items] | ||||
Senior Secured Convertible Note, due August 9, 2027 | $ 110,000 | |||
Facility Agreement | ||||
Debt Instrument [Line Items] | ||||
Less: Unamortized debt issuance costs | $ 4,924 | |||
Facility Agreement | Convertible Notes | ||||
Debt Instrument [Line Items] | ||||
Senior Secured Convertible Note, due August 9, 2027 | $ 110,000 | $ 110,000 | ||
Less: Unamortized debt issuance costs | 2,718 | 2,875 | $ 3,663 | |
Less: Unamortized debt discount | 18,897 | 20,299 | ||
Long-term debt, net of unamortized debt discount and issuance costs | $ 88,385 | $ 86,826 |
Debt - Debt Maturities (Details
Debt - Debt Maturities (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Debt Disclosure [Abstract] | |
2024 (remaining nine months) | $ 0 |
2025 | 0 |
2026 | 0 |
2027 | 110,000 |
Total debt | $ 110,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 0 | $ 44 |
Decrease in income taxes | $ 44 | |
Effective income tax rate reconciliation, percent | 0% | (0.15%) |
Stockholders' Equity (Details)
Stockholders' Equity (Details) | 3 Months Ended | 12 Months Ended | |||||||
Aug. 28, 2023 USD ($) shares | Jun. 14, 2023 USD ($) shares | Dec. 12, 2021 d $ / shares shares | Mar. 31, 2024 USD ($) vote $ / shares shares | Dec. 31, 2023 USD ($) $ / shares shares | Mar. 31, 2023 shares | Dec. 31, 2022 shares | Dec. 31, 2021 shares | Nov. 12, 2021 $ / shares shares | |
Common and Preferred Shares | |||||||||
Common stock, shares issued (in shares) | 76,046,694 | 75,879,025 | |||||||
Common stock, shares outstanding (in shares) | 74,312,920 | 74,145,251 | |||||||
Number of common stock, vote per share | vote | 1 | ||||||||
Dividends, common stock (in dollars per share) | $ | $ 0 | $ 0 | |||||||
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 | 10,000,000 | ||||||
Preferred stock, par value (in usd per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||
Preferred stock, liquidation preference per share (in dollars per share) | $ / shares | $ 0.0001 | ||||||||
Preferred stock, shares outstanding (in shares) | 165,045 | 165,045 | 163,510 | ||||||
Shares issued upon conversion (in shares) | 100 | ||||||||
Maximum percent of common stock allowed | 4.90% | ||||||||
Threshold number of business days before sending notice of redemption to warrant holders | d | 3 | ||||||||
Number of shares authorized to be repurchased (in shares) | 2,000,000 | 5,000,000 | |||||||
Repurchase and retirement of common stock | $ | $ 125,000 | $ 894,000 | |||||||
Common Stock | |||||||||
Common and Preferred Shares | |||||||||
Common stock, shares outstanding (in shares) | 76,046,694 | 75,879,025 | 73,754,609 | 73,265,621 | |||||
Repurchase of common stock (in shares) | 140,646 | 1,593,128 | |||||||
Public and Private Warrants | |||||||||
Common and Preferred Shares | |||||||||
Term from closing of IPO | 30 days | ||||||||
Warrants term (in years) | 5 years | ||||||||
Public Warrants | |||||||||
Common and Preferred Shares | |||||||||
Number of warrants outstanding (in shares) | 5,749,986 | ||||||||
Number of securities called by each warrant (in shares) | 1 | ||||||||
Warrants price per share (in usd per share) | $ / shares | $ 11.50 | ||||||||
Warrant redemption maximum common share price (in dollars per share) | $ / shares | $ 18 | ||||||||
Threshold trading days | d | 20 | ||||||||
Threshold consecutive trading days | d | 30 | ||||||||
Warrants price per share (in usd per share) | $ / shares | $ 0.01 | ||||||||
Minimum threshold written notice period for redemption of public warrants | 30 days | ||||||||
Private Warrants | |||||||||
Common and Preferred Shares | |||||||||
Number of warrants outstanding (in shares) | 3,177,542 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Nov. 06, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Total fair value of common shares vested | $ 1,041,000 | $ 281,000 | |||
Stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Term of award (in years) | 10 years | ||||
Maximum total number of common shares for which Stock Options may be granted | 15,640,000 | ||||
Granted (in shares) | 0 | 1,948,354 | |||
Compensation costs recognized | $ 2,507,000 | $ 2,707,000 | |||
Unrecognized compensation cost | $ 7,939,000 | ||||
Unrecognized compensation cost expected to be recognized over a weighted average period (in years) | 2 years 2 months 15 days | ||||
Common stock repurchase | $ 73,000 | ||||
Tax benefit from stock options exercised | $ 0 | ||||
Stock options | 2021 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Maximum total number of common shares for which Stock Options may be granted | 6,281,181 | ||||
Granted (in shares) | 0 | ||||
Stock options | First anniversary of grant date | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Percentage of stock options | 25% | ||||
Stock options | Equal monthly-basis vesting through fourth anniversary of grant date | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Percentage of stock options | 75% | ||||
RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Compensation costs recognized | $ 1,545,000 | $ 2,088,000 | |||
Number of shares outstanding (in shares) | 1,976,406 | 2,176,422 | |||
Weighted-average grant date fair value (in dollars per share) | $ 2.14 | $ 0.48 | |||
RSUs and RSAs | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Unrecognized compensation cost expected to be recognized over a weighted average period (in years) | 1 year 9 months 7 days | ||||
Unrecognized compensation expense | $ 4,426,000 | ||||
Vested in period (in shares) | 83,020 | ||||
Net settled to cover the required withholding tax upon vesting | 0 | ||||
Medical RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Compensation costs recognized | $ 0 | $ 58,000 | |||
Number of shares outstanding (in shares) | 0 | 0 | 0 | 147,470 | |
Vested in period (in shares) | 0 | 155,787 | |||
Award requisite service period (in years) | 1 year | ||||
Granted (in shares) | 0 | 8,317 | |||
Shares granted, trailing closing price per share preceding grant date, period (in days) | 5 days | ||||
Fair value of the liability-classified medical RSU outstanding | $ 0 | $ 0 | |||
Employees Earnout Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Compensation costs recognized | $ 35,000 | $ 112,000 | |||
Unrecognized compensation cost expected to be recognized over a weighted average period (in years) | 1 month 2 days | ||||
Number of shares outstanding (in shares) | 1,401,064 | 1,401,064 | 1,401,064 | 1,417,632 | |
Unrecognized compensation expense | $ 35,000 | ||||
Vested in period (in shares) | 0 | 0 | |||
Granted (in shares) | 0 | 0 |
Share-Based Compensation - Weig
Share-Based Compensation - Weighted Average Assumptions Used in the Black-Scholes-Merton Option-Pricing Model (Details) - Stock options | 3 Months Ended |
Mar. 31, 2023 | |
Valuation assumptions: | |
Expected dividend yield | 0% |
Expected volatility | 64% |
Risk-free rate | 3.40% |
Expected term (years) | 6 years 3 months |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Option Activity (Details) - Stock options - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Number of shares | ||
Balance at the beginning (in shares) | 8,525,262 | 8,049,474 |
Granted (in shares) | 0 | 1,948,354 |
Exercised (in shares) | (84,649) | 0 |
Forfeited (in shares) | (59,776) | (163,414) |
Expired (in shares) | 0 | (1,747) |
Balance at the end (in shares) | 8,380,837 | 9,832,667 |
Vested options exercisable at the end (in shares) | 5,178,613 | 3,271,151 |
Weighted average exercise price | ||
Balance at the beginning (in dollars per share) | $ 1.74 | $ 2.14 |
Granted (in dollars per share) | 0 | 0.48 |
Exercised (in dollars per share) | 0.86 | 0 |
Forfeited (in dollars per share) | 1.38 | 3.20 |
Expired (in dollars per share) | 0 | 1.08 |
Balance at the end (in dollars per share) | 1.76 | 1.79 |
Vested options exercisable at the end (in dollars per share) | $ 1.49 | $ 1.33 |
Weighted average remaining contractual term (years) | ||
Balance at the end (in years) | 6 years 9 months 18 days | 8 years 7 days |
Vested options exercisable at the end (in years) | 6 years 14 days | 6 years 8 months 4 days |
Aggregate intrinsic value (in thousands) | $ 5,006 | $ 384 |
Vested Options Exercisable | $ 3,295 | $ 0 |
Share-Based Compensation - RSAs
Share-Based Compensation - RSAs (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Restricted Stock Units and Restricted Stock Awards | ||
Number of Shares | ||
Balance at the beginning (in shares) | 2,176,422 | 2,106,540 |
Granted (in shares) | 6,787 | 1,863,539 |
Vested (in shares) | (83,020) | (331,675) |
Forfeited (in shares) | (123,783) | (56,427) |
Balance at the end (in shares) | 1,976,406 | 3,581,977 |
Weighted Average Grant Date Fair Value | ||
Balance at the beginning (in dollars per share) | $ 3.50 | $ 7.25 |
Granted (in dollars per share) | 2.14 | 0.48 |
Vested (in dollars per share) | 10.90 | 4.12 |
Forfeited (in dollars per share) | 6.71 | 6.63 |
Balance at the ending (in dollars per share) | $ 2.98 | 10.98 |
RSUs | ||
Number of Shares | ||
Balance at the beginning (in shares) | 2,176,422 | |
Balance at the end (in shares) | 1,976,406 | |
Weighted Average Grant Date Fair Value | ||
Granted (in dollars per share) | $ 2.14 | $ 0.48 |
Medical RSUs | ||
Number of Shares | ||
Balance at the beginning (in shares) | 0 | 147,470 |
Granted (in shares) | 0 | 8,317 |
Vested (in shares) | 0 | (155,787) |
Forfeited (in shares) | 0 | 0 |
Balance at the end (in shares) | 0 | 0 |
Employees Earnout Shares | ||
Number of Shares | ||
Balance at the beginning (in shares) | 1,401,064 | 1,417,632 |
Granted (in shares) | 0 | 0 |
Vested (in shares) | 0 | 0 |
Forfeited (in shares) | 0 | (16,568) |
Balance at the end (in shares) | 1,401,064 | 1,401,064 |
Business Combinations - Additio
Business Combinations - Additional Information (Details) | 3 Months Ended | 12 Months Ended | |||
Nov. 28, 2023 USD ($) | Jun. 05, 2023 USD ($) | Mar. 31, 2024 USD ($) assetAcquisition | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) business_combination | |
Business Acquisition [Line Items] | |||||
Number of businesses acquired | business_combination | 2 | ||||
Number of asset acquisition | assetAcquisition | 0 | ||||
Payment of deferred consideration liability for acquisition | $ 0 | $ 409,000 | |||
Change in fair value of earnout liabilities | 0 | (752,000) | |||
Southland provisional | |||||
Business Acquisition [Line Items] | |||||
Cash | $ 4,300,000 | ||||
Payment of deferred consideration liability for acquisition | 2,072,000 | ||||
Deferred | 1,813,000 | 1,980,000 | $ 1,944,000 | ||
Change in fair value of earnout liabilities | 36,000 | $ 131,000 | |||
Southland provisional | Clinical contracts and noncompetes | |||||
Business Acquisition [Line Items] | |||||
Clinical contracts and noncompetes | $ 2,844,000 | ||||
Weighted average useful life (in years) | 5 years | ||||
Southland provisional | Payor Contracts Agreements | |||||
Business Acquisition [Line Items] | |||||
Weighted average useful life (in years) | 18 years | ||||
Bolsa provisional | |||||
Business Acquisition [Line Items] | |||||
Cash | $ 157,000 | ||||
Deferred | 0 | ||||
Acquisition and integration expenses paid | 0 | $ 0 | |||
Bolsa provisional | Clinical contracts and noncompetes | |||||
Business Acquisition [Line Items] | |||||
Clinical contracts and noncompetes | 113,000 | ||||
Bolsa provisional | Clinical Contracts And Licenses | |||||
Business Acquisition [Line Items] | |||||
Clinical contracts and noncompetes | $ 113,000 | ||||
Bolsa provisional | Clinical contracts and noncompete agreements | |||||
Business Acquisition [Line Items] | |||||
Weighted average useful life (in years) | 10 years | ||||
Bolsa provisional | License | |||||
Business Acquisition [Line Items] | |||||
Weighted average useful life (in years) | 2 years | ||||
Raiker | |||||
Business Acquisition [Line Items] | |||||
Cumulative revenue | 12,930,000 | ||||
Cumulative net income (loss) | $ 2,244,000 |
Business Combinations - Summary
Business Combinations - Summary of Fair Value of Assets Acquired and Liabilities Assumed as Part of the Acquisition (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Nov. 28, 2023 | Jun. 05, 2023 | Mar. 31, 2024 | Dec. 31, 2023 | |
Estimated fair value of identifiable assets acquired and liabilities assumed: | ||||
Goodwill | $ 7,230 | $ 7,230 | ||
Total | ||||
Business Acquisition [Line Items] | ||||
Cash | 4,457 | |||
Deferred | 1,813 | |||
Fair value of total consideration transferred | 6,270 | |||
Estimated fair value of identifiable assets acquired and liabilities assumed: | ||||
Inventory | 32 | |||
Property and equipment | 602 | |||
Operating right of use assets | 4,290 | |||
Goodwill | 2,679 | |||
Total assets acquired | 10,560 | |||
Current portion of operating lease liabilities | 405 | |||
Operating lease liabilities | 3,885 | |||
Total liabilities assumed | 4,290 | |||
Net assets acquired | 6,270 | |||
Total | Clinical contracts and noncompetes | ||||
Estimated fair value of identifiable assets acquired and liabilities assumed: | ||||
Clinical contracts and noncompetes | 2,957 | |||
Southland provisional | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 4,300 | |||
Deferred | 1,813 | $ 1,980 | $ 1,944 | |
Fair value of total consideration transferred | 6,113 | |||
Estimated fair value of identifiable assets acquired and liabilities assumed: | ||||
Inventory | 0 | |||
Property and equipment | 590 | |||
Operating right of use assets | 4,246 | |||
Goodwill | 2,679 | |||
Total assets acquired | 10,359 | |||
Current portion of operating lease liabilities | 378 | |||
Operating lease liabilities | 3,868 | |||
Total liabilities assumed | 4,246 | |||
Net assets acquired | 6,113 | |||
Southland provisional | Clinical contracts and noncompetes | ||||
Estimated fair value of identifiable assets acquired and liabilities assumed: | ||||
Clinical contracts and noncompetes | $ 2,844 | |||
Bolsa provisional | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 157 | |||
Deferred | 0 | |||
Fair value of total consideration transferred | 157 | |||
Estimated fair value of identifiable assets acquired and liabilities assumed: | ||||
Inventory | 32 | |||
Property and equipment | 12 | |||
Operating right of use assets | 44 | |||
Goodwill | 0 | |||
Total assets acquired | 201 | |||
Current portion of operating lease liabilities | 27 | |||
Operating lease liabilities | 17 | |||
Total liabilities assumed | 44 | |||
Net assets acquired | 157 | |||
Bolsa provisional | Clinical contracts and noncompetes | ||||
Estimated fair value of identifiable assets acquired and liabilities assumed: | ||||
Clinical contracts and noncompetes | $ 113 |
Variable Interest Entities - Su
Variable Interest Entities - Summary of Consolidated Financial Statements of VIEs (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||||
Cash | $ 36,055 | $ 33,488 | $ 15,250 | $ 14,010 |
Accounts receivable, net | 58,760 | 42,360 | ||
Other receivables | 368 | 551 | ||
Inventories | 11,554 | 13,678 | ||
Prepaid expenses and other current assets | 4,678 | 4,049 | ||
Total current assets | 141,192 | 143,493 | ||
Property and equipment, net | 10,995 | 10,883 | ||
Other assets | 568 | 561 | ||
Intangible assets, net | 17,131 | 17,904 | ||
Goodwill | 7,230 | 7,230 | ||
Total assets | 204,532 | 209,240 | ||
Current liabilities: | ||||
Accounts payable | 21,015 | 14,429 | ||
Accrued expenses and other current liabilities | 18,363 | 13,996 | ||
Amounts due to affiliates | 18,363 | 13,996 | ||
Total current liabilities | 45,768 | 34,788 | ||
Other non-current liabilities | 273 | 365 | ||
Deferred income taxes liability | 32 | 32 | ||
Total liabilities | 163,236 | 152,215 | ||
Variable Interest Entity | ||||
Current assets: | ||||
Cash | 2,046 | 2,282 | ||
Accounts receivable, net | 58,760 | 45,175 | ||
Other receivables | 129 | 129 | ||
Inventories | 11,554 | 13,646 | ||
Prepaid expenses and other current assets | 1,227 | 1,136 | ||
Total current assets | 73,716 | 62,368 | ||
Property and equipment, net | 95 | 105 | ||
Other assets | 533 | 525 | ||
Intangible assets, net | 5,580 | 5,628 | ||
Goodwill | 2,679 | 2,679 | ||
Total assets | 82,603 | 71,305 | ||
Current liabilities: | ||||
Accounts payable | 18,719 | 12,729 | ||
Accrued expenses and other current liabilities | 11,972 | 8,413 | ||
Total current liabilities | 241,283 | 210,190 | ||
Other non-current liabilities | 117 | 211 | ||
Deferred income taxes liability | 21 | 21 | ||
Total liabilities | 241,421 | 210,422 | ||
Variable Interest Entity | Related party | ||||
Current liabilities: | ||||
Amounts due to affiliates | $ 210,592 | $ 189,048 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Summary of Intangible Assets, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross carrying amount | $ 32,032 | $ 32,032 |
Accumulated amortization | (14,901) | (14,128) |
Net carrying amount | $ 17,131 | $ 17,904 |
Payor contracts | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average amortization period | 13 years | 13 years |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross carrying amount | $ 22,191 | $ 22,191 |
Accumulated amortization | (10,524) | (10,014) |
Net carrying amount | $ 11,667 | $ 12,177 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average amortization period | 10 years | 10 years |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross carrying amount | $ 6,650 | $ 6,650 |
Accumulated amortization | (2,757) | (2,594) |
Net carrying amount | $ 3,893 | $ 4,056 |
Clinical contracts and noncompete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average amortization period | 8 years | 8 years |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross carrying amount | $ 3,191 | $ 3,191 |
Accumulated amortization | (1,620) | (1,520) |
Net carrying amount | $ 1,571 | $ 1,671 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Estimated Aggregate Amortization Expense (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Year ending December 31: | ||
2024 (remaining nine months) | $ 2,321 | |
2025 | 3,091 | |
2026 | 3,060 | |
2027 | 2,933 | |
2028 | 2,828 | |
Thereafter | 2,898 | |
Net carrying amount | $ 17,131 | $ 17,904 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 774 | $ 728 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Goodwill [Line Items] | ||
Goodwill | $ 7,230 | $ 7,230 |
Patient services | ||
Goodwill [Line Items] | ||
Goodwill | 2,679 | 2,679 |
Dispensary | ||
Goodwill [Line Items] | ||
Goodwill | 4,551 | 4,551 |
Clinical trials & other | ||
Goodwill [Line Items] | ||
Goodwill | $ 0 | $ 0 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets - Changes in the Carrying Amount of Goodwill (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill [Roll Forward] | ||||
Balance as of January 1 | $ 7,230,000 | $ 21,418,000 | ||
Goodwill acquired | $ 0 | 2,679,000 | ||
Goodwill impairment charges | 0 | $ (16,867,000) | (16,867,000) | |
The end of the period | $ 7,230,000 | $ 7,230,000 |
Net Loss Per Share - Schedule o
Net Loss Per Share - Schedule of Basic and Diluted Net Loss Per Share to Common Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings Per Share [Abstract] | ||
Net loss attributable to TOI | $ (19,889) | $ (29,998) |
Less: Deemed dividend | 0 | 0 |
Net loss attributable to TOI available for distribution | (19,889) | (29,998) |
Net loss attributable to participating securities, basic | (3,617) | (5,504) |
Net loss attributable to common stockholders, basic | $ (16,272) | $ (24,494) |
Weighted average common shares outstanding, basic (in shares) | 74,234,287 | 73,449,132 |
Net (loss) income per share attributable to common stockholders, basic (in usd per share) | $ (0.22) | $ (0.33) |
Net loss attributable to TOI available for distribution | $ (19,889) | $ (29,998) |
Net loss attributable to participating securities, diluted | (3,617) | (5,504) |
Net loss attributable to common stockholders, diluted | $ (16,272) | $ (24,494) |
Dilutive effect of stock options (in shares) | 0 | 0 |
Weighted average shares outstanding, diluted (in shares) | 74,234,287 | 73,449,132 |
Net (loss) income per share attributable to common stockholders, diluted (in usd per share) | $ (0.22) | $ (0.33) |
Net Loss Per Share - Schedule_2
Net Loss Per Share - Schedule of Computation of Diluted Net Loss Per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Convertible note | ||
Basic and diluted net income (loss) per share of common stock: | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 12,839,967 | 12,839,967 |
Stock options | ||
Basic and diluted net income (loss) per share of common stock: | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 8,380,837 | 9,832,667 |
RSUs | ||
Basic and diluted net income (loss) per share of common stock: | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 1,976,406 | 3,581,977 |
Medical RSUs | ||
Basic and diluted net income (loss) per share of common stock: | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 447,012 |
Earnout Shares | ||
Basic and diluted net income (loss) per share of common stock: | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 1,401,064 | 1,401,064 |
Public Warrants | ||
Basic and diluted net income (loss) per share of common stock: | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 5,749,986 | 5,749,986 |
Private Warrants | ||
Basic and diluted net income (loss) per share of common stock: | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 3,177,542 | 3,177,542 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2024 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Number of reportable segments | 3 |
Segment Information - Summary o
Segment Information - Summary of Financial Information for the Company's Segments (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Segment Reporting Information | |||
Consolidated revenue | $ 94,666,000 | $ 76,192,000 | |
Total segment depreciation expense | 715,000 | 541,000 | |
Total segment amortization | 774,000 | 728,000 | |
Goodwill impairment charges | 0 | 16,867,000 | $ 16,867,000 |
Selling, general and administrative expense | 28,452,000 | 28,830,000 | |
Non-segment depreciation and amortization | 1,489,000 | 1,269,000 | |
Loss from operations | (17,972,000) | (32,867,000) | |
Operating segments | |||
Segment Reporting Information | |||
Consolidated revenue | 94,666,000 | 76,192,000 | |
Total segment direct costs | 82,697,000 | 62,093,000 | |
Total segment depreciation expense | 546,000 | 422,000 | |
Total segment amortization | 773,000 | 727,000 | |
Total segment operating income | 10,650,000 | 12,950,000 | |
Goodwill impairment charges | 0 | 16,867,000 | |
Selling, general and administrative expense | 28,452,000 | 28,830,000 | |
Non-segment assets | |||
Segment Reporting Information | |||
Non-segment depreciation and amortization | 170,000 | 120,000 | |
Patient services | Operating segments | |||
Segment Reporting Information | |||
Consolidated revenue | 52,453,000 | 50,273,000 | |
Total segment direct costs | 49,497,000 | 42,814,000 | |
Total segment depreciation expense | 515,000 | 406,000 | |
Total segment amortization | 718,000 | 675,000 | |
Total segment operating income | 1,723,000 | 6,378,000 | |
Goodwill impairment charges | 0 | 16,235,000 | |
Dispensary | Operating segments | |||
Segment Reporting Information | |||
Consolidated revenue | 39,679,000 | 24,240,000 | |
Total segment direct costs | 32,809,000 | 19,145,000 | |
Total segment depreciation expense | 31,000 | 16,000 | |
Total segment operating income | 6,839,000 | 5,079,000 | |
Clinical trials & other | Operating segments | |||
Segment Reporting Information | |||
Consolidated revenue | 2,534,000 | 1,679,000 | |
Total segment direct costs | 391,000 | 134,000 | |
Total segment amortization | 55,000 | 52,000 | |
Total segment operating income | 2,088,000 | 1,493,000 | |
Goodwill impairment charges | $ 0 | $ 632,000 |
Segment Information - Assets (D
Segment Information - Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Segment Reporting Information | ||
Total assets | $ 204,532 | $ 209,240 |
Non-segment assets | ||
Segment Reporting Information | ||
Total assets | 98,396 | 118,433 |
Patient services | Operating segments | ||
Segment Reporting Information | ||
Total assets | 77,996 | 73,551 |
Dispensary | Operating segments | ||
Segment Reporting Information | ||
Total assets | 18,256 | 8,378 |
Clinical trials & other | Operating segments | ||
Segment Reporting Information | ||
Total assets | $ 9,884 | $ 8,878 |
Related Party Transactions - Su
Related Party Transactions - Summary of Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Related Party Transactions | ||
Total related party payments | $ 135 | $ 110 |
American Institute of Research | Payments to Affiliated Entities | Related party | ||
Related Party Transactions | ||
Total related party payments | 0 | 15 |
Karen M Johnson | Payments to Affiliated Entities | Related party | ||
Related Party Transactions | ||
Total related party payments | 19 | 13 |
Anne M. McGeorge | Payments to Affiliated Entities | Related party | ||
Related Party Transactions | ||
Total related party payments | 19 | 13 |
Mohit Kaushal | Payments to Affiliated Entities | Related party | ||
Related Party Transactions | ||
Total related party payments | 19 | 15 |
Ravi Sarin | Payments to Affiliated Entities | Related party | ||
Related Party Transactions | ||
Total related party payments | 0 | 13 |
Maeve O'Meara Duke | Payments to Affiliated Entities | Related party | ||
Related Party Transactions | ||
Total related party payments | 19 | 13 |
M33 Growth LLC (Gabe Ling) | Payments to Affiliated Entities | Related party | ||
Related Party Transactions | ||
Total related party payments | 21 | 13 |
Mark L. Pacala | Payments to Affiliated Entities | Related party | ||
Related Party Transactions | ||
Total related party payments | 19 | 13 |
Richy Agajanian MD | Payments to Affiliated Entities | Related party | ||
Related Party Transactions | ||
Total related party payments | 0 | 2 |
Brad Hively | Payments to Affiliated Entities | Related party | ||
Related Party Transactions | ||
Total related party payments | $ 19 | $ 0 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 | Nov. 30, 2023 |
Related Party Transactions | |||
Related party, outstanding | $ 1,250,000 | ||
Related party | |||
Related Party Transactions | |||
Related party, outstanding | $ 0 | $ 0 |