InnovAge Holding (INNV) 10-Q 7 Feb 23 2023 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Dec. 31, 2022	Feb. 06, 2023
Document and Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Dec. 31, 2022
Entity File Number	001-40159
Entity Registrant Name	InnovAge Holding Corp.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	81-0710819
Entity Address, Address Line One	8950 E. Lowry Boulevard
Entity Address, City or Town	Denver
Entity Address State Or Province	CO
Entity Address, Postal Zip Code	80230
City Area Code	844
Local Phone Number	803-8745
Title of 12(b) Security	Common Stock, $0.001 par value
Trading Symbol	INNV
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	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		135,596,225
Entity Central Index Key	0001834376
Current Fiscal Year End Date	--06-30
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2022	Jun. 30, 2022
Current Assets
Cash and cash equivalents	$ 99,460	$ 184,429
Short-term investments	45,424
Restricted cash	17	17
Accounts receivable, net of allowance ($4,202 - December 31, 2022 and $3,403 - June 30, 2022)	38,643	35,907
Prepaid expenses	12,212	13,842
Income tax receivable	3,733	6,761
Total current assets	199,489	240,956
Noncurrent Assets
Property and equipment, net	185,774	176,260
Operating lease assets	22,223
Investments	5,493	5,493
Deposits and other	3,391	2,812
Goodwill	124,217	124,217
Other intangible assets, net	5,528	5,858
Total noncurrent assets	346,626	314,640
Total assets	546,115	555,596
Current Liabilities
Accounts payable and accrued expenses	48,901	50,562
Reported and estimated claims	35,115	38,454
Due to Medicaid and Medicare	11,077	9,130
Current portion of long-term debt	3,794	3,793
Current portion of finance lease obligations	3,864	3,368
Current portion of operating lease obligations	3,434
Total current liabilities	106,185	105,307
Noncurrent Liabilities
Deferred tax liability, net	11,379	17,761
Finance lease obligations	9,032	9,440
Operating lease obligations	20,034
Other noncurrent liabilities	1,182	1,134
Long-term debt, net of debt issuance costs	66,528	68,210
Total liabilities	214,340	201,852
Commitments and Contingencies (See Note 9)
Redeemable Noncontrolling Interests (See Note 4)	14,054	15,278
Stockholders' Equity
Common stock, $0.001 par value; 500,000,000 authorized as of December 31, 2022 and June 30, 2022; 135,596,225 and 135,532,811 issued shares as of December 31, 2022 and June 30, 2022, respectively	136	136
Additional paid-in capital	329,777	327,499
Retained earnings (deficit)	(18,137)	4,729
Total InnovAge Holding Corp.	311,776	332,364
Noncontrolling interests	5,945	6,102
Total stockholders' equity	317,721	338,466
Total liabilities and stockholders' equity	$ 546,115	$ 555,596

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2022	Jun. 30, 2022
Condensed Consolidated Balance Sheets
Allowance for loss	$ 4,202	$ 3,403
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock authorized (in shares)	500,000,000	500,000,000
Common stock issued (in shares)	135,596,225	135,532,811
Common stock outstanding (in shares)	135,596,225	135,532,811

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Revenues
Total revenues	$ 167,456	$ 175,350	$ 338,674	$ 348,420
Expenses
External provider costs	93,507	91,033	189,744	181,045
Cost of care, excluding depreciation and amortization	51,376	42,911	104,933	83,639
Sales and marketing	3,774	6,679	8,187	12,972
Corporate, general and administrative	28,817	28,482	58,999	49,566
Depreciation and amortization	3,662	3,292	7,095	6,585
Total expenses	181,136	172,397	368,958	333,807
Operating Income (Loss)	(13,680)	2,953	(30,284)	14,613
Other Income (Expense)
Interest expense, net	(223)	(674)	(826)	(1,221)
Other income (expense)	444	28	480	(465)
Total other expense	221	(646)	(346)	(1,686)
Income (Loss) Before Income Taxes	(13,459)	2,307	(30,630)	12,927
Provision (Benefit) for Income Taxes	(2,912)	1,201	(6,383)	4,197
Net Income (Loss)	(10,547)	1,106	(24,247)	8,730
Less: net loss attributable to noncontrolling interests	(754)	(217)	(1,381)	(279)
Net Income (Loss) Attributable to InnovAge Holding Corp.	$ (9,793)	$ 1,323	$ (22,866)	$ 9,009
Weighted-average number of common shares outstanding - basic	135,578,888	135,516,513	135,572,503	135,516,513
Weighted-average number of common shares outstanding - diluted	135,578,888	135,516,513	135,572,503	135,516,513
Net income (loss) per share - basic	$ (0.07)	$ 0.01	$ (0.17)	$ 0.07
Net income (loss) per share - diluted	$ (0.07)	$ 0.01	$ (0.17)	$ 0.07
Capitation revenue
Revenues
Total revenues	$ 167,140	$ 174,964	$ 338,071	$ 347,518
Other service revenue
Revenues
Total revenues	$ 316	$ 386	$ 603	$ 902

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Retained Earnings (Deficit)	Noncontrolling Interests	Total
Balances, Beginning at Jun. 30, 2021	$ 136	$ 323,760	$ 10,663	$ 6,420	$ 340,979
Balances, Beginning (in shares) at Jun. 30, 2021	135,516,513
Stock-based compensation		1,741			1,741
Adjustments to redemption value			(1,977)		(1,977)
Net income (loss)			9,009	(166)	8,843
Balances, Ending at Dec. 31, 2021	$ 136	325,501	17,695	6,254	349,586
Balances, Ending (in shares) at Dec. 31, 2021	135,516,513
Beginning balance at Jun. 30, 2021					16,986
Redeemable non-controlling interests (Temporary Equity)
Adjustments to redemption value					1,977
Net income (loss)					(113)
Ending balance at Dec. 31, 2021					18,850
Redeemable non-controlling interests (Temporary Equity)
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest					8,730
Balances, Beginning at Sep. 30, 2021	$ 136	324,718	18,936	6,326	350,116
Balances, Beginning (in shares) at Sep. 30, 2021	135,516,513
Stock-based compensation		783			783
Adjustments to redemption value			(2,564)		(2,564)
Net income (loss)			1,323	(72)	1,251
Balances, Ending at Dec. 31, 2021	$ 136	325,501	17,695	6,254	349,586
Balances, Ending (in shares) at Dec. 31, 2021	135,516,513
Beginning balance at Sep. 30, 2021					16,431
Redeemable non-controlling interests (Temporary Equity)
Adjustments to redemption value					2,564
Net income (loss)					(145)
Ending balance at Dec. 31, 2021					18,850
Redeemable non-controlling interests (Temporary Equity)
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest					1,106
Balances, Beginning at Jun. 30, 2022	$ 136	327,499	4,729	6,102	338,466
Balances, Beginning (in shares) at Jun. 30, 2022	135,532,811
Stock-based compensation		2,278			2,278
Stock-based compensation (in shares)	63,414
Net income (loss)			(22,866)	(157)	(23,023)
Balances, Ending at Dec. 31, 2022	$ 136	329,777	(18,137)	5,945	317,721
Balances, Ending (in shares) at Dec. 31, 2022	135,596,225
Beginning balance at Jun. 30, 2022					15,278
Redeemable non-controlling interests (Temporary Equity)
Net income (loss)					(1,224)
Ending balance at Dec. 31, 2022					14,054
Redeemable non-controlling interests (Temporary Equity)
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest					(24,247)
Balances, Beginning at Sep. 30, 2022	$ 136	328,708	(8,344)	6,020	326,520
Balances, Beginning (in shares) at Sep. 30, 2022	135,570,078
Stock-based compensation		1,069			1,069
Stock-based compensation (in shares)	26,147
Net income (loss)			(9,793)	(75)	(9,868)
Balances, Ending at Dec. 31, 2022	$ 136	$ 329,777	$ (18,137)	$ 5,945	317,721
Balances, Ending (in shares) at Dec. 31, 2022	135,596,225
Beginning balance at Sep. 30, 2022					14,734
Redeemable non-controlling interests (Temporary Equity)
Net income (loss)					(680)
Ending balance at Dec. 31, 2022					14,054
Redeemable non-controlling interests (Temporary Equity)
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest					$ (10,547)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Operating Activities
Net income (loss)	$ (24,247)	$ 8,730
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
(Gain) loss on disposal of assets	(53)	465
Provision for uncollectible accounts	2,244	2,883
Depreciation and amortization	7,095	6,585
Operating lease rentals	2,335
Amortization of deferred financing costs	215	215
Stock-based compensation	2,278	1,741
Deferred income taxes	(6,381)	3,380
Other	(424)
Changes in operating assets and liabilities, net of acquisitions
Accounts receivable, net	(4,980)	(3,589)
Prepaid expenses	1,631	(209)
Income tax receivable	3,027	757
Deposits and other	(533)	(89)
Accounts payable and accrued expenses	(544)	7,596
Reported and estimated claims	(3,339)	1,373
Due to Medicaid and Medicare	1,946	1,739
Operating lease liabilities	(2,260)
Net cash provided (used) by operating activities	(21,990)	31,577
Investing Activities
Purchases of property and equipment	(14,632)	(11,681)
Purchases of short-term investments	(45,000)
Purchase of cost method investment		(2,000)
Net cash used in investing activities	(59,632)	(13,681)
Financing Activities
Payments for finance lease obligations	(1,452)	(1,154)
Principal payments on long-term debt	(1,895)	(1,894)
Net cash used in financing activities	(3,347)	(3,048)
INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS & RESTRICTED CASH	(84,969)	14,848
CASH, CASH EQUIVALENTS & RESTRICTED CASH, BEGINNING OF PERIOD	184,446	203,700
CASH, CASH EQUIVALENTS & RESTRICTED CASH, END OF PERIOD	99,477	218,548
Supplemental Cash Flows Information
Interest paid	1,726	984
Income taxes paid	13	84
Property and equipment included in accounts payable	53	1,004
Property and equipment purchased under finance leases	$ 1,541	$ 5,653

Business

Business	6 Months Ended
	Dec. 31, 2022
Business
Business	Note 1: Business InnovAge Holding Corp. and its subsidiaries, are headquartered in Denver, Colorado. The Company manages, and in many cases directly provides, a broad range of medical and ancillary services for seniors in need of care and support to safely live independently in their homes and communities, including in-home care services (skilled, unskilled and personal care); in-center services such as primary care, physical therapy, occupational therapy, speech therapy, dental services, mental health and psychiatric services, meals, and activities; transportation to the Program of All-Inclusive Care for the Elderly (“PACE”) center and third-party medical appointments; and care management. The Company manages its business as one reportable segment, PACE. As of December 31, 2022, the Company served approximately 6,460 PACE participants, making it the largest PACE provider in the United States of America (the “U.S.”) based upon participants served, and operates 18 PACE centers across Colorado, California, New Mexico, Pennsylvania and Virginia. PACE is a fully-capitated managed care program, which serves the frail elderly, and predominantly dual-eligible, population in a community-based service model. InnovAge is obligated to provide, and participants receive all needed healthcare services through an all-inclusive, coordinated model of care, and the Company is at risk for 100% of healthcare costs incurred with respect to the care of its participants. PACE programs receive capitation payments directly from Medicare Parts C and D, Medicaid, Veterans Administration (“VA”), and private pay sources. Additionally, under the Medicare Prescription Drug Plan, the Centers for Medicare and Medicaid Services (“CMS”) share part of the risk for providing prescription medication to the Company’s participants. The Company’s common stock is traded on the Nasdaq Stock Market LLC (“NASDAQ”) under the ticker symbol “INNV.”

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Dec. 31, 2022
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	Note 2: Summary of Significant Accounting Policies The Company described its significant accounting policies in Note 2, “Summary of Significant Accounting Policies” of the Notes to Consolidated Financial Statements in its Annual Report on Form 10-K for the year ended June 30, 2022 (“2022 10-K”). With the exception of Recently Adopted Accounting Pronouncements described below, there were no significant changes to those accounting policies during the six months ended December 31, 2022. Basis of Preparation and Principles of Consolidation The unaudited interim condensed consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to such regulations. These financial statements have been prepared on a basis consistent with the accounting principles applied for the fiscal year ended June 30, 2022. In the opinion of management, all adjustments (consisting of all normal and recurring adjustments) considered necessary for a fair presentation have been included. The condensed consolidated financial statements include the accounts of InnovAge, its wholly owned subsidiaries, variable interest entities (“VIEs”) for which it is the primary beneficiary and entities for which it has a controlling interest. All intercompany accounts and transactions have been eliminated in consolidation. The Company does not have any components of comprehensive income and comprehensive income is equal to net income (loss) reported in the statements of operations for all periods presented. Property and Equipment Property and equipment were comprised of the following as of December 31, 2022 and June 30, 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Estimated ​ ​ ​ ​ dollars in thousands ​ Useful Lives ​ December 31, 2022 ​ June 30, 2022 Land N/A ​ $ 11,980 ​ $ 11,980 Buildings and leasehold improvements 10 - 40 years ​ 122,885 ​ 122,076 Software 3 - 5 years ​ 27,532 ​ 16,264 Equipment and vehicles 3 - 7 years ​ 49,847 ​ 47,546 Construction in progress N/A ​ 37,091 ​ 35,479 ​ ​ ​ 249,335 ​ ​ 233,345 Less: accumulated depreciation and amortization ​ ​ (63,561) ​ (57,085) Total property and equipment, net ​ ​ ​ $ 185,774 ​ $ 176,260 ​ Depreciation of $3.3 million and $2.8 million was recorded during the three months ended December 31, 2022 and 2021, respectively. Depreciation of $6.5 million and $6.1 million was recorded during the six months ended December 31, 2022 and 2021, respectively. Recently Adopted Accounting Pronouncements Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02 Leases Revenue from contracts with customers (Topic 606) and leases (Topic 842) – Effective dates for certain entities We adopted the new standard on July 1, 2022 using the modified retrospective transition approach as permitted in ASU 2018-11. In accordance with this approach, the effective date of Topic 842 is also the application date of the new requirements, with prior comparative periods presented in the financial statements with the legacy requirements of ASC Topic 840, Leases. We elected the package of practical expedients which permits us not to reassess under the new lease standard our prior conclusions for lease identification and lease classification on expired or existing contracts and whether initial direct costs previously capitalized would qualify for capitalization under the new lease standard. We also elected to adopt the optional transition method which allows an entity to recognize, if necessary, a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company did not elect the practical expedient to use hindsight in determining the lease term and in assessing impairment conclusions on the ROU assets. Comparative periods presented in the financial statements continue to be presented in accordance with GAAP related to leases prior to transitioning to the new lease standard. The adoption of Topic 842 resulted in the recognition of operating lease liabilities and ROU assets of $25.1 million and $23.6 million, respectively, while our accounting for capital leases (now referred to as finance leases) remained substantially unchanged. The impact of adopting Topic 842 was not material to our Statements of Operations and Statements of Cash Flows. See Note 7, “Leases.” ​ Recent Accounting Pronouncements Not Yet Adopted Financial Instruments In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments ( ) We do not expect that any other recently issued accounting guidance will have a significant effect on our condensed consolidated financial statements.

Revenue Recognition

Revenue Recognition	6 Months Ended
	Dec. 31, 2022
Revenue Recognition
Revenue Recognition	Note 3: Revenue Recognition Under ASC 606, revenue is recognized when a customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC 606, the Company performs the following five steps: (i) Identify the contract(s) with a customer; (ii) Identify the performance obligations in the contract; (iii) Determine the transaction price; (iv) Allocate the transaction price to the performance obligations in the contract; and (v) Recognize revenue as the entity satisfies a performance obligation. Capitation Revenue and Accounts Receivable Our capitation revenue relates to contracts with participants in which our performance obligation is to provide healthcare services to the participants. Revenues are recorded during the period our obligations to provide healthcare services are satisfied as noted below within each service type. The Company contracts directly with Medicare and Medicaid on a per member, per month (“PMPM”) basis. We receive 100% of the pooled capitated payment to directly provide or manage the healthcare needs of our participants. Fees are recorded gross in revenues because the Company is acting as a principal in providing for or overseeing comprehensive care provided to the participants. Neither the Company nor any of its affiliates is a registered insurance company because state law in the states in which it operates does not require such registration for risk-bearing providers. In general, a participant enrolls in the PACE program and is considered a customer of InnovAge. The Company considers all contracts with participants as a single performance obligation to provide comprehensive medical, health, and social services that integrate acute and long-term care. The Company identified that contracts with customers in the PACE program have similar performance obligations and therefore groups them into one portfolio. This performance obligation is satisfied as the Company provides comprehensive care to its participants. Our revenues are based on the estimated PMPM amounts we expect to be entitled to receive from the capitated fees per participant that are paid monthly by Medicaid, Medicare, the VA, and private pay sources. Medicaid and Medicare capitation revenues are based on PMPM capitation rates under the PACE program. VA is included in “Private Pay and other” and is also capitated. Private pay includes direct payments from participants who do not qualify for the full capitated rate and have to pay all or a portion of the capitated rate. Costs to obtain contracts consist of sales commissions for new enrollees and are included in deposits and other. These costs are amortized over a three-year period which corresponds to the average time a participant is enrolled in the PACE program. As of December 31, 2022 and June 30, 2022 contract assets included within deposits and other were $0.5 million and nil, respectively. The Company disaggregates capitation revenue from the following sources for the six months ended: ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ 2022 2021 Medicaid 55 % 54 % Medicare 45 % 46 % Private pay and other * % * % Total 100 % 100 % * Less than 1% ​ The Company determined the transaction price for these contracts is the amount we expect to be entitled to, which is the most likely amount. For certain capitation payments, the Company is subject to retroactive premium risk adjustments based on various factors. The Company estimates the amount of the adjustment and records it monthly on a straight-line basis. These adjustments are not expected to be material. The capitation revenues are recognized based on the estimated PMPM transaction price to transfer the service for a distinct increment of the series (i.e. month). We recognize revenue in the month in which participants are entitled to receive comprehensive care benefits during the contract term. As the period between the time of service and time of payment is typically one year or less, the Company elected the practical expedient under ASC 606-10-32-18 and did not adjust for the effects of a significant financing component. The Company also provides prescription drug benefits in accordance with Medicare Part D. Monthly payments received from CMS and the participants represent the bid amount for providing prescription drug coverage. The portion received from CMS is subject to risk sharing through Medicare Part D risk-sharing corridor provisions. These risk-sharing corridor provisions compare costs targeted in the Company’s bid to actual prescription drug costs. The Company estimates and records a monthly adjustment to Medicare Part D revenues associated with these risk-sharing corridor provisions. Medicare Part D comprised 12% of capitation revenues for each of the three months ended December 31, 2022 and 2021. Medicare Part D comprised 12% of capitation revenues for each of the six months ended December 31, 2022 and 2021. Our accounts receivable as of December 31, 2022 and June 30, 2022 is primarily from capitation revenue arrangements. The concentration of net receivables from participants and third-party payers was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ June 30, ​ ​ 2022 2022 Medicaid 40 % 70 % Medicare 53 % 22 % Private pay and other 7 % 8 % Total 100 % 100 % ​ The Company records accounts receivable at net realizable value, which includes an allowance for estimated uncollectible accounts. The allowance for uncollectible accounts reflects the Company’s best estimate of probable losses considering eligibility, historical experience, and existing economic conditions. The balance of the allowance for uncollectible accounts was $4.2 million as of December 31, 2022, compared to $3.4 million as of June 30, 2022. Accounts are written off as bad debts when they are deemed uncollectible based upon individual credit evaluations and specific circumstances underlying the accounts. Other Service Revenue and Accounts Receivable Other service revenue is comprised of rents earned related to Senior Housing and other fee for service revenue. Other service revenue was 0.2% and 0.2% of total revenue for the three months ended December 31, 2022 and 2021, respectively. Other service revenue was 0.2% and 0.3% of total revenue for the six months ended December 31, 2022 and 2021, respectively. Accounts receivable related to other service revenue was not significant as of both December 31, 2022 and June 30, 2022. Laws and regulations governing the Medicare and Medicaid programs are complex and subject to change, as well as government review. Failure to comply with these laws can expose the entity to significant regulatory action, including fines, penalties, and exclusion from the Medicare and Medicaid programs. See Note 9, “Commitments and Contingencies.”

Investments

Investments	6 Months Ended
	Dec. 31, 2022
Investments
Investments	Note 4: Investments The Company holds equity method and cost method investments as of: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ June 30, in thousands 2022 2022 Cost method investments ​ $ 4,645 ​ $ 4,645 Equity method investments ​ 848 ​ 848 Total investments ​ $ 5,493 ​ $ 5,493 ​ Nonconsolidated Entities Cost Method Investments The Company maintains two investments that are accounted for using the cost method. The investments do not have a readily determinable fair value and the Company has elected to record the investments at cost, less impairment, if any, plus or minus any changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. During the six months ended December 31, 2022 and 2021, there were no observable price changes or impairments recorded. Jetdoc ​ In August 2021, the Company acquired a minority interest equal to 806,481 shares of the outstanding common stock of Jetdoc, Inc. (“Jetdoc”), a telehealth and virtual urgent care app dedicated to effectively connecting users with medical professionals, for cash consideration of $2.0 million. The balance of the Company’s investment in Jetdoc is $2.0 million which represents the maximum exposure to loss. ​ DispatchHealth ​ On June 14, 2019, the Company invested $1.5 million in DispatchHealth Holdings, Inc. ("DispatchHealth"), through the purchase of a portion of its outstanding Series B Preferred Stock. On April 2, 2020, the Company invested an additional $1.1 million through the purchase of a portion of its outstanding Series C Preferred Stock. The balance of the Company’s investment is $2.6 million which represents the maximum exposure to loss. ​ Equity Method Investments ​ Pinewood Lodge ​ The Company’s operations include a Senior Housing unit that primarily includes the accounts of Continental Community Housing (“CCH”), the general partner of Pinewood Lodge, LLP (“ PWD”) which was organized to develop, construct, own, maintain, and operate certain apartment complexes intended for rental to low-income elderly individuals aged 62 or older. PWD is a VIE, but the Company is not the primary beneficiary. The Company does not have the power to direct the activities that most significantly impact the economic performance of PWD. Accordingly, the Company does not consolidate PWD. PWD is accounted for using the equity method of accounting. The equity earnings of PWD are insignificant. As of December 31, 2022, the balance of the Company’s investment in PWD is $0.8 million which represents the maximum exposure to loss. Noncontrolling Interest Senior Housing ​ The Company’s operations include a 0.01% partnership interest in InnovAge Senior Housing Thornton, LLC (“SH1”), which was organized to develop, construct, own, maintain, and operate certain apartment complexes intended for rental to low-income elderly individuals aged 62 or older. SH1 is a VIE. The Company is the primary beneficiary of SH1 and consolidates SH1. The Company is the primary beneficiary of SH1 as it has the power to direct the activities that are most significant to SH1 and has an obligation to absorb losses or the right to receive benefits from SH1. The most significant activity of SH1 is the operation of the senior housing facility. The Company has provided a subordinated loan to SH1 and has provided a guarantee for a convertible term loan held by SH1. Redeemable Noncontrolling Interest InnovAge Sacramento ​ On March 18, 2019, in connection with the formation of InnovAge Sacramento, the joint venture with Adventist Health System/West (“Adventist”) and Eskaton Properties, Incorporated (“Eskaton”), the Company contributed $9.0 million in cash and land valued at $4.2 million for a 59.9% membership interest in the joint venture, InnovAge Sacramento. Further, Adventist contributed $5.8 million in cash and Eskaton contributed $3.0 million in cash for membership interests of 26.4% and 13.7%, respectively. In fiscal year 2021, the Company made an additional contribution of $52,000 and obtained an additional 0.1% membership interest in the joint venture, which resulted in the Company obtaining control and consolidating InnovAge Sacramento as of January 1, 2021. The InnovAge California PACE-Sacramento LLC Limited Liability Company Agreement (the “JV Agreement”) includes numerous provisions whereby, if certain conditions are met, the Joint Venture may be required to purchase, at fair market value, certain members’ interests or certain members may be required to purchase, at fair market value, the interests of certain other members. As of December 31, 2022, none of the conditions specified in the JV Agreement had been met. At the time the Company became a publicly traded company these put rights held by the noncontrolling interests of the joint venture were required to be presented as temporary equity. The redeemable noncontrolling interest of $14.1 million was recorded at carrying value as of December 31, 2022.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Dec. 31, 2022
Fair Value Measurements
Fair Value Measurements	Note 5: Fair Value Measurements Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants, at the measurement date. A fair value hierarchy was established that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources outside the reporting entity. Unobservable inputs are inputs that reflect the Company’s own assumptions based on market data and assumptions that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The sensitivity to changes in inputs and their impact on fair value measurements can be significant. The three levels of inputs that may be used to measure fair value are: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access at the measurement date Level 2 Quoted prices in markets that are not active or inputs that are observable, either directly or indirectly, for substantially the full term of the assets or liabilities Level 3 Unobservable inputs to the valuation techniques that are significant to the fair value measurements of the assets or liabilities The following table shows the Company’s cash, cash equivalents and marketable securities by significant investment category as of December 31, 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and ​ ​ Short- ​ ​ ​ ​ Amortized ​ ​ Unrealized ​ ​ Unrealized ​ ​ Fair ​ ​ Cash ​ ​ term ​ in thousands ​ ​ Cost ​ ​ Gains ​ ​ Losses ​ ​ Value ​ ​ Equivalents ​ ​ Investments ​ Cash ​ $ 18,858 ​ $ — ​ $ — ​ $ 18,858 ​ $ 18,858 ​ $ — ​ Level 1 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Money market funds ​ ​ 80,602 ​ ​ — ​ ​ — ​ ​ 80,602 ​ ​ 80,602 ​ ​ — ​ Mutual funds ​ ​ 45,000 ​ ​ 424 ​ ​ — ​ ​ 45,424 ​ ​ — ​ ​ 45,424 ​ Total ​ $ 144,460 ​ $ 424 ​ $ — ​ $ 144,884 ​ $ 99,460 ​ $ 45,424 ​ ​ Recurring Measurements The Company’s investment in InnovAge Sacramento includes a put right for the noncontrolling interest holders to require the Company to repurchase the interest of the noncontrolling interest holders at fair value, after the initial term of the management services agreement in 2028. As a result, at each fiscal period end the Company reports this put right at the greater of (i) carrying value of the redeemable noncontrolling interest or (ii) fair value of the redeemable noncontrolling interest. Because this asset does not have observable inputs, level 3 inputs are used to measure fair value. The fair value of the redeemable noncontrolling interest is determined utilizing a discounted cash flow model. As of December 31, 2022, the Company’s redeemable noncontrolling interest was recorded at carrying value of $14.1 million. There were no transfers in and out of Level 3 during the six months ended December 31, 2022 or 2021.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	6 Months Ended
	Dec. 31, 2022
Goodwill and Intangible Assets
Goodwill and Intangible Assets	Note 6: Goodwill and Intangible Assets Goodwill represents the excess of cost over the fair value of net assets acquired. Goodwill amounted to $124.2 million at each of December 31, 2022 and June 30, 2022. Goodwill is not amortized. Pursuant to ASC 350, “ Intangibles – Goodwill and Other Intangible assets consisted of the following as of: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ June 30, in thousands 2022 2022 Definite-lived intangible assets ​ $ 6,600 ​ $ 6,600 Indefinite-lived intangible assets ​ ​ 2,000 ​ ​ 2,000 Total intangible assets ​ ​ 8,600 ​ ​ 8,600 Accumulated amortization ​ ​ (3,072) ​ ​ (2,742) Balance as of end of period ​ $ 5,528 ​ $ 5,858 ​ Intangible assets consist primarily of customer relationships acquired through business acquisitions. The Company recorded amortization expense of $0.2 million and $0.2 million for the three months ended December 31, 2022 and 2021, respectively. The Company recorded amortization expense of $0.3 million and $0.3 million for the six months ended December 31, 2022 and 2021, respectively. We review the recoverability of other intangible assets in conjunction with long-lived assets whenever events or changes in circumstances indicate the carrying amount of such assets may not be recoverable. There were no intangible asset impairments recorded during the six months ended December 31, 2022 and 2021.

Leases

Leases	6 Months Ended
	Dec. 31, 2022
Leases
Leases	Note 7: Leases Leasing Arrangements as Lessee The Company leases certain property and equipment under various third-party operating and finance lease agreements. The Company determines if an arrangement is or contains a lease at the lease inception date by evaluating whether the arrangement conveys the right to use an identified asset and whether the Company obtains substantially all of the economic benefits from and has the ability to direct the use of the asset. The leases are noncancelable and expire on various terms from 2023 through 2032. We determine if an arrangement is a lease upon commencement of the contract. If an arrangement is determined to be a long-term lease (greater than 12 months), we recognize an ROU asset and lease liability based on the present value of the future minimum lease payments over the lease term at the commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. Our lease terms may also include options to extend or terminate the lease when it is reasonably certain that we will exercise those options. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. We have elected to apply the short-term lease exception for contracts that have a lease term of twelve months or less and do not include an option to purchase the underlying asset. Therefore, we do not recognize a ROU asset or lease liability for such contracts. We recognize short-term lease payments as expense on a straight-line basis over the lease term. Variable lease payments that do not depend on an index or rate are recognized as expense. Certain leases include escalations based on inflation indexes and fair market value adjustments. Operating lease liabilities are calculated using the prevailing index or rate at lease commencement for such leases. The following table presents the components of our ROU assets and their classification in our Balance Sheet at December 31, 2022: ​ ​ ​ ​ ​ Component of Lease Balances Balance Sheet Line Items ​ Six months ended December 31, ​ ​ ​ 2022 ​ ​ in thousands Assets: ​ ​ ​ Operating lease assets Operating lease assets $ 22,223 Finance lease assets Property and equipment, net 11,153 Total leased assets ​ $ 33,376 ​ The following table presents the components of our lease cost and the classification of such costs in our Statements of Operations for the six months ended December 31, 2022: ​ ​ ​ ​ ​ Component of Lease Cost Statements of Operations Line Items ​ Six months ended December 31, ​ ​ ​ 2022 ​ ​ in thousands Operating lease cost Cost of care excluding depreciation and amortization and Corporate, general and administrative $ 2,557 Finance lease expense: ​ ​ ​ Amortization of leased assets Depreciation and amortization 1,685 Interest on lease liabilities Interest expense, net ​ 562 Variable lease cost Cost of care excluding depreciation and amortization and Corporate, general and administrative ​ — Short-term lease cost Cost of care excluding depreciation and amortization and Corporate, general and administrative ​ 17 Total lease expense ​ $ 4,821 ​ The following table includes the weighted-average lease terms and discount rates for operating and finance leases as of December 31, 2022: ​ ​ ​ ​ Weighted average remaining lease term: ​ December 31, ​ ​ 2022 Operating leases 8.8 years Finance leases ​ 3.8 years ​ ​ ​ ​ ​ Weighted average discount rate: ​ December 31, ​ ​ ​ 2022 ​ Operating leases 6.61 % Finance leases ​ 8.53 % ​ The following table includes the future maturities of lease payments for operating leases and finance leases for periods subsequent to December 31, 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating ​ Finance ​ ​ ​ in thousands ​ Lease ​ Lease ​ Total Amount remaining in 2023 ​ $ 2,552 ​ $ 2,580 ​ $ 5,132 2024 ​ 4,542 ​ 4,263 ​ 8,805 2025 ​ 4,136 ​ 3,480 ​ 7,616 2026 ​ 4,061 ​ 2,456 ​ 6,517 2027 ​ 3,764 ​ 1,760 ​ 5,524 Thereafter ​ 10,302 ​ 686 ​ 10,988 Total lease payments ​ 29,357 ​ 15,225 ​ 44,582 Less liability accretion / imputed interest ​ (5,889) ​ (2,329) ​ (8,218) Total lease liabilities ​ 23,468 ​ 12,896 ​ 36,364 Less: Current lease liabilities ​ 3,434 ​ 3,864 ​ 7,298 Total long-term lease liabilities ​ $ 20,034 ​ $ 9,032 ​ $ 29,066 ​ The following table includes the future maturities of minimum rental payments that are required to be paid under all non-cancelable operating and capital lease obligations as previously disclosed in our 2022 Annual Report on Form 10-K as of June 30, 2022, prior to the adoption of ASC 842: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating ​ Capital in thousands ​ Lease ​ Lease Amount remaining in 2023 ​ $ 4,873 ​ $ 4,405 2024 ​ 4,581 ​ 3,909 2025 ​ 4,122 ​ 3,126 2026 ​ 4,061 ​ 2,092 2027 ​ 3,764 ​ 1,393 Thereafter ​ 10,265 ​ 535 Total minimal rental payments ​ 31,666 ​ 15,460 Less: Amount representing interest ​ ​ ​ ​ (2,652) Subtotal ​ ​ ​ ​ 12,808 Current portion ​ ​ ​ ​ 3,368 Long-term portion ​ ​ ​ ​ $ 9,440 ​ ​

Long-Term Debt

Long-Term Debt	6 Months Ended
	Dec. 31, 2022
Long-Term Debt
Long-Term Debt	Note 8. Long-Term Debt Long-term debt consisted of the following at December 31, 2022 and June 30, 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, June 30, ​ ​ 2022 ​ 2022 ​ ​ in thousands Senior secured borrowings: ​ ​ ​ ​ ​ ​ Term Loan Facility ​ $ 69,375 ​ $ 71,250 Convertible term loan ​ 2,306 ​ 2,327 Total debt ​ 71,681 ​ 73,577 Less: unamortized debt issuance costs ​ 1,359 ​ 1,574 Less: current maturities ​ 3,794 ​ 3,793 Noncurrent maturities ​ $ 66,528 ​ $ 68,210 ​ 2021 Credit Agreement On March 8, 2021, the Company entered into a credit agreement (the “2021 Credit Agreement”) that replaced its prior credit agreement. The 2021 Credit Agreement consists of a senior secured term loan (the “Term Loan Facility”) of $75.0 million principal amount and a revolving credit facility (the “Revolving Credit Facility”) of $100.0 million maximum borrowing capacity, each with a maturity date of March 8, 2026. The remaining capacity under the Revolving Credit Facility as of December 31, 2022 was $97.2 million, subject to (i) any issued amounts under our letters of credit, which as of December 31, 2022 was $2.8 million, and (ii) applicable to covenant compliance restrictions and any other conditions precedent to borrowing. Loans under the 2021 Credit Agreement are secured by substantially all of the Company’s assets. Principal on the Term Loan Facility is paid each calendar quarter in an amount equal to 1.25% of the initial term loan on closing date. Proceeds of the Term Loan Facility, together with proceeds from the Company’s initial public offering (“IPO”), were used to repay long term debt amounts then outstanding. Outstanding principal amounts under the 2021 Credit Agreement accrue interest at a variable interest rate. As of December 31, 2022, the interest rate on the Term Loan Facility was 6.14%. Under the terms of the 2021 Credit Agreement, the Revolving Credit Facility fee accrues at 0.25% of the average daily unused amount and is paid quarterly. As of December 31, 2022, we had no borrowings outstanding, $2.8 million of letters of credit issued, and $97.2 million of remaining capacity under the Revolving Credit Facility. The 2021 Credit Agreement requires the Company to meet certain operational and reporting requirements, including, but not limited to, a secured net leverage ratio. Additionally, annual capital expenditures and permitted investments, including acquisitions, are limited to amounts specified in the 2021 Credit Agreement. The 2021 Credit Agreement also provides certain restrictions on dividend payments and other equity transactions and requires the Company to make prepayments under specified circumstances. As of December 31, 2022, the Company was in compliance with the covenants of the 2021 Credit Agreement. The deferred financing costs of $2.0 million are amortized over the term of the underlying debt and unamortized amounts have been offset against long-term debt in the condensed consolidated balance sheets. Total amortization of deferred financing costs was $0.2 million for the six months ended December 31, 2022. Convertible Term Loan On June 29, 2015, SH1 entered into a convertible term loan. Monthly principal and interest payments of $0.02 million commenced on September 1, 2015. The loan bears interest at an annual rate of 6.68%, with the remaining principal balance due upon maturity at August 20, 2030. The loan is secured by a deed of trust to Public Trustee, assignment of leases and rents, security agreements, and SH1’s fixture filing.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Dec. 31, 2022
Commitments and Contingencies
Commitments and Contingencies	Note 9: Commitments and Contingencies Professional Liability The Company pays fixed premiums for annual professional liability insurance coverage under a claims-made policy. Under such policy, only claims made and reported to the insurer are covered during the policy term, regardless of when the incident giving rise to the claim occurred. The Company records claim liabilities and expected recoveries, if any, at gross amounts. The Company is not currently aware of any unasserted claims or unreported incidents that are expected to exceed medical malpractice insurance coverage limits. Litigation From time to time, in the normal course of business, the Company is involved in or subject to legal proceedings related to its business, including those described below. The Company regularly evaluates the status of claims and legal proceedings in which it is involved in order to assess whether a loss is probable or there is a reasonable possibility that a loss may have been incurred, and to determine if accruals are appropriate. The Company expenses legal costs as such costs are incurred. ​ On October 14, 2021, and subsequently amended on June 21, 2022, the Company was named as a defendant in a putative class action complaint filed in the District Court for the District of Colorado on behalf of individuals who purchased or acquired shares of the Company’s common stock during a specified period. Through the complaint, plaintiffs are asserting claims against the Company, certain of the Company’s officers and directors, the Company’s former CEO, Apax Partners, L.P., Welsh, Carson, Anderson & Stowe and the underwriters in the Company’s IPO alleging violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 and Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), for making allegedly inaccurate and misleading statements and omissions in connection with the Company’s IPO and subsequent earnings calls and public filings, and seeking to impose control person liability against the officer and director defendants, Apax Partners, L.P. and Welsh, Carson, Anderson & Stowe. The complaint seeks compensatory damages, among other things. On September 13, 2022, the Company and the officer and director defendants and Apax Partners, L.P. and Welsh, Carson, Anderson & Stowe filed a motion to dismiss the amended complaint for failure to state a claim upon which relief can be granted. We are currently unable to predict the outcome of this matter. ​ In July 2021, the Company received a civil investigative demand from the Attorney General for the State of Colorado under the Colorado Medicaid False Claims Act. The demand requests information and documents regarding Medicaid billing, patient services and referrals in connection with the Company’s PACE program in Colorado. The Company continues to fully cooperate with the Attorney General and produce the requested information and documentation. We are currently unable to predict the outcome of this investigation. In February 2022, the Company received a civil investigative demand from the Department of Justice (“DOJ”) under the Federal False Claims Act on similar subject matter. The demand requests information and documents regarding audits, billing, orders tracking, and quality and timeliness of patient services in connection with the Company’s PACE programs in the states where the Company operates (California, Colorado, New Mexico, Pennsylvania, and Virginia). In December 2022, the Company received a supplemental civil investigative demand requesting supplemental information on the same matters. The Company continues to fully cooperate with the DOJ and produce the requested information and documentation. We are currently unable to predict the outcome of this investigation. ​ On April 20, 2022, the Board of Directors of the Company received a books and records demand pursuant to Section 220 of the Delaware General Corporation Law, from a purported stockholder of the Company, in connection with the stockholder’s investigation of, among other matters, potential breaches of fiduciary duty, mismanagement, self-dealing, corporate waste or other violations of law by the Company’s Board with respect to these matters. We are currently unable to predict the outcome of this matter. ​ Because the results of legal proceedings and claims are inherently unpredictable and uncertain, we are currently unable to predict whether the legal proceedings we are involved in will, either individually or in the aggregate, have a material adverse effect on our business, financial condition, or cash flows. The outcomes of legal proceedings and claims could be material to the Company’s operating results for any particular period, depending in part, upon the operating results of such period. Regardless of the outcome, litigation has the potential to have an adverse impact on us due to any related defense and settlement costs, diversion of management resources, and other factors.

Stock-based Compensation

Stock-based Compensation	6 Months Ended
	Dec. 31, 2022
Stock-based Compensation
Stock-based Compensation	Note 10: A summary of our aggregate stock-based compensation expense is set forth below. Stock-based compensation expense is included in corporate, general and administrative expenses on our consolidated statements of operations. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six months ended December 31, ​ Three months ended December 31, ​ 2022 2021 ​ 2022 2021 ​ in thousands ​ in thousands ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stock options $ 533 ​ $ 90 ​ $ 261 ​ $ 90 Profits interests units 456 ​ 1,029 ​ 202 ​ 439 Restricted stock units ​ 1,523 ​ ​ 622 ​ ​ 749 ​ ​ 254 Total stock-based compensation expense $ 2,512 ​ $ 1,741 ​ $ 1,212 ​ $ 783 ​ 2020 Equity Incentive Plan Profits Interests TCO Group Holdings, L.P. (the “LP”), the Company’s largest shareholder and prior to the IPO, the Company’s parent, maintains the 2020 Equity Incentive Plan pursuant to which interests in the LP in the form of Class B Units (profits interests) could be granted to employees, directors, consultants, and advisers. A maximum number of 16,162,177 Class B Units were authorized for grant under the 2020 Equity Incentive Plan. As of December 31, 2022, a total of 13,009,137 profits interests units had been granted under the 2020 Equity Incentive Plan. The Company used the Monte Carlo option model to determine the fair value of the profits interests units at the time of the grant. There were no grants following the IPO and during the six months ended December 31, 2022. A summary of profits interests activity for the six months ended December 31, 2022 was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of ​ Weighted average Time-based unit awards ​ units ​ grant date fair value ​ ​ ​ ​ ​ ​ Outstanding balance, June 30, 2022 2,158,072 ​ $ 1.28 Granted ​ — ​ $ — Forfeited (49,654) ​ $ 1.28 Vested ​ (844,081) ​ $ 1.28 Outstanding balance, December 31, 2022 1,264,337 ​ $ 1.28 ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of ​ Weighted average Performance-based unit awards ​ units ​ grant date fair value ​ ​ ​ ​ ​ ​ Outstanding balance, June 30, 2022 2,217,865 ​ $ 0.57 Granted ​ — ​ $ — Forfeited (99,307) ​ $ 0.57 Vested ​ — ​ $ — Outstanding balance, December 31, 2022 2,118,558 ​ $ 0.57 ​ The total unrecognized compensation cost related to profits interests units outstanding as of December 31, 2022 was $2.5 million, comprised (i) $1.3 million related to time-based unit awards expected to be recognized over a weighted-average period of 0.9 years and (ii) $1.2 million related to performance-based unit awards, which will be recorded when it is probable that the performance-based criteria will be met. 2021 Omnibus Incentive Plan In March 2021, the compensation committee of our Board of Directors approved the InnovAge Holding Corp. 2021 Omnibus Incentive Plan (the “2021 Omnibus Incentive Plan”), pursuant to which various stock-based awards may be granted to employees, directors, consultants, and advisers. The total number of shares of the Company’s common stock authorized under the 2021 Omnibus Incentive Plan is 14,700,000. The Company has issued time-based restricted stock units under this plan to its employees which generally vest (i) on March 4, 2023, the second anniversary of the grant date, or (ii) over a three-year period with one Restricted Stock Units A summary of time-based vesting restricted stock units activity for the six months ended December 31, 2022 was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ average ​ ​ Number of ​ ​ grant-date fair Restricted stock units - time based ​ awards ​ ​ value per share ​ ​ ​ ​ ​ ​ Outstanding balance, June 30, 2022 476,768 ​ $ 9.69 Granted 986,200 ​ $ 5.97 Forfeited ​ (155,741) ​ $ 5.48 Vested ​ (97,727) ​ $ 4.50 Outstanding balance, December 31, 2022 1,209,500 ​ $ 6.41 ​ The total unrecognized compensation cost related to time based restricted stock units outstanding as of December 31, 2022 was $5.1 million and is expected to be recognized over a weighted-average period of 2.3 years. A summary of performance based vesting restricted stock units activity for the six months ended December 31, 2022 was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ average ​ ​ Number of ​ ​ grant-date fair Restricted stock units - performance based ​ awards ​ ​ value per share ​ ​ ​ ​ ​ ​ Outstanding balance, June 30, 2022 258,767 ​ $ 5.18 Granted ​ — ​ $ — Forfeited ​ — ​ $ — Vested — ​ $ — Outstanding balance, December 31, 2022 258,767 ​ $ 5.18 ​ The total unrecognized compensation cost related to performance based vesting restricted stock units outstanding as of December 31, 2022 was $1.0 million and is expected to be recognized over a weighted-average period of 2.8 years. Nonqualified Stock Options A summary of time-based vesting stock option activity for the six months ended December 31, 2022 was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ average ​ ​ Number of ​ ​ grant-date fair Stock options - time based ​ awards ​ ​ value per share ​ ​ ​ ​ ​ ​ Outstanding balance, June 30, 2022 554,499 ​ $ 1.61 Granted 81,082 ​ $ 0.80 Forfeited ​ — ​ $ — Vested ​ (138,624) ​ $ 0.28 Outstanding balance, December 31, 2022 496,957 ​ $ 0.90 ​ The total unrecognized compensation cost related to time-based vesting stock options outstanding as of December 31, 2022 was $0.5 million and is expected to be recognized over a weighted-average period of 2.4 years. The fair value of the time-based stock options granted during the six months ended December 31, 2022, was based upon the Black-Scholes option pricing model using the assumptions in the following table: ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ Expected volatility ​ ​ 34.5 % Weighted-average expected life (years) - time vesting units ​ ​ 2.9 ​ Interest rate ​ 1.56 % Dividend yield ​ 0 % Weighted-average fair values ​ $ 0.80 ​ Fair value of underlying stock $ 3.70 ​ ​ A summary of performance-based vesting stock option activity for the six months ended December 31, 2022 was as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ average ​ ​ Number of ​ ​ grant-date fair Stock options - performance based ​ awards ​ ​ value per share ​ ​ ​ ​ ​ ​ Outstanding balance, June 30, 2022 776,299 ​ $ 3.08 Granted — ​ $ — Forfeited ​ — ​ $ — Vested ​ — ​ $ — Outstanding balance, December 31, 2022 776,299 ​ $ 3.08 ​ The total unrecognized compensation cost related to performance-based vesting stock options outstanding as of December 31, 2022 was $1.7 million and is expected to be recognized over a weighted-average period of 2.9 years.

Income Taxes

Income Taxes	6 Months Ended
	Dec. 31, 2022
Income Taxes
Income Taxes	Note 11: Income Taxes The Company recorded an income tax benefit of $2.9 million and an income tax provision of $1.2 million for the three months ended December 31, 2022 and 2021, respectively. The Company recorded an income tax benefit of $6.4 million and an income tax provision of $4.2 million for the six months ended December 31, 2022 and 2021, respectively. This represents an effective tax rate of 20.9% and 32.5% for the three months ended December 31, 2022 and 2021, respectively. This represents an effective tax rate of 20.9% and 32.5% for the six months ended December 31, 2022 and 2021, respectively. The effective rate for the six months ended December 31, 2022 was different from the federal statutory rate primarily due to the Company’s book loss offset partially by disallowed officers’ compensation under Internal Revenue Code (“IRC”) Section 162(m), disallowed stock options related to the profit interest units, exclusion of losses from entities not subject to tax, and lobbying expenses which occurred during the three month period. The Company assesses the valuation allowance recorded against deferred tax assets at each reporting date. The determination of whether a valuation allowance for deferred tax assets is appropriate requires the evaluation of positive and negative evidence that can be objectively verified. Consideration must be given to all sources of taxable income available to realize deferred tax assets, including, as applicable, the future reversal of existing temporary differences, future taxable income forecasts exclusive of the reversal of temporary differences and carryforwards, taxable income in carryback years and tax planning strategies. In estimating income taxes, the Company assesses the relative merits and risks of the appropriate income tax treatment of transactions taking into account statutory, judicial, and regulatory guidance. As of the six-month period ended December 31, 2022, the Company has determined that it is not “more likely than not” that the deferred tax assets associated with certain state net operating losses will be realized and as such continues to maintain a valuation allowance against these state deferred tax assets. The Company has provided $4.1 million at each of December 31, 2022 and June 30, 2022, as a valuation allowance against its deferred tax assets for state net operating losses where there is not sufficient positive evidence to substantiate that these deferred tax assets will be realized at a more-likely-than-not level of assurance.

Earnings per Share

Earnings per Share	6 Months Ended
	Dec. 31, 2022
Earnings per Share
Earnings per Share	Note 12: Basic earnings (loss) per share (“EPS”) is computed using the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed using the weighted-average number of common shares outstanding during the period, plus the dilutive effect of outstanding options, using the treasury stock method and the average market price of the Company’s common stock during the applicable period. When a loss from continuing operations exists, all dilutive securities and potentially dilutive securities are anti-dilutive and are therefore excluded from the computation of diluted earnings per share. When net income from continuing operations exists, performance-based units, are omitted from the calculation of diluted EPS until it is determined that the performance criteria has been met at the end of the reporting period. For the three and six months ended December 31, 2022, 424,316 and 14,076 potentially diluted securities, respectively, were excluded from the weighted-average shares used to calculate the diluted net loss per common share as they would have an anti-dilutive effect. There were no potentially dilutive shares for the three and six months ended December 31, 2021, therefore, there was no difference between basic and diluted net loss per common shares. ​ The following table sets forth the computation of basic and diluted net loss per common share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended December 31, Six months ended December 31, in thousands, except share values 2022 2021 2022 2021 Net income (loss) attributable to InnovAge Holding Corp. ​ $ (9,793) ​ $ 1,323 ​ $ (22,866) ​ $ 9,009 Weighted average common shares outstanding (basic) ​ 135,578,888 ​ 135,516,513 ​ 135,572,503 ​ 135,516,513 EPS (basic) ​ $ (0.07) ​ $ 0.01 ​ $ (0.17) ​ $ 0.07 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Dilutive shares ​ — ​ — ​ — ​ — Weighted average common shares outstanding (diluted) ​ 135,578,888 ​ 135,516,513 ​ 135,572,503 ​ 135,516,513 EPS (diluted) ​ $ (0.07) ​ $ 0.01 ​ $ (0.17) ​ $ 0.07 ​

Segment Reporting

Segment Reporting	6 Months Ended
	Dec. 31, 2022
Segment Reporting
Segment Reporting	Note 13: The Company applies ASC Topic 280, " Segment Reporting The Company evaluates performance and allocates capital resources to each segment based on an operating model that is designed to maximize the provision of services provided and profitability. The Company does not review assets by segment and therefore assets by segment are not disclosed below. For the periods presented, all of the Company’s long-lived assets were located in the United States and all revenue was earned in the United States. The Company’s management uses Center-level Contribution Margin as the measure for assessing performance of its segments. Center-level Contribution Margin is defined as total revenues less external provider costs and cost of care (excluding depreciation and amortization), which includes all medical and pharmacy costs. The Company allocates corporate level expenses to its segments with a majority of the allocation going to the PACE segment. The following table summarizes the operating results regularly provided to the CODM by reportable segment for the three months ended December 31, 2022 and 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2022 ​ December 31, 2021 (In thousands) PACE All other (1) Totals PACE All other (1) Totals Capitation revenue ​ $ 167,140 ​ $ — ​ $ 167,140 ​ $ 174,964 ​ $ — ​ $ 174,964 Other service revenue ​ 99 ​ 217 ​ 316 ​ 60 ​ 326 ​ 386 Total revenues ​ 167,239 ​ 217 ​ 167,456 ​ 175,024 ​ 326 ​ 175,350 External provider costs ​ 93,507 ​ — ​ 93,507 ​ 91,033 ​ — ​ 91,033 Cost of care, excluding depreciation and amortization ​ 51,184 ​ 192 ​ 51,376 ​ 42,478 ​ 433 ​ 42,911 Center-Level Contribution Margin ​ 22,548 ​ 25 ​ 22,573 ​ 41,513 ​ (107) ​ ​ 41,406 Overhead costs (2) ​ 32,532 ​ 59 ​ 32,591 ​ 35,160 ​ 1 ​ 35,161 Depreciation and amortization ​ 3,555 ​ 107 ​ 3,662 ​ 3,185 ​ 107 ​ 3,292 Interest expense, net ​ (177) ​ (46) ​ (223) ​ (624) ​ (50) ​ (674) Other expense (income) ​ 444 ​ — ​ 444 ​ 29 ​ (1) ​ 28 Income (Loss) Before Income Taxes ​ $ (13,272) ​ $ (187) ​ $ (13,459) ​ $ 2,573 ​ $ (266) ​ $ 2,307 ​ The following table summarizes the operating results regularly provided to the CODM by reportable segment for the six months ended December 31, 2022 and 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2022 ​ December 31, 2021 in thousands PACE All other (1) Totals PACE All other (1) Totals Capitation revenue ​ $ 338,071 ​ $ — ​ $ 338,071 ​ $ 347,518 ​ $ — ​ $ 347,518 Other service revenue ​ 176 ​ 427 ​ 603 ​ 69 ​ 833 ​ 902 Total revenues ​ 338,247 ​ 427 ​ 338,674 ​ 347,587 ​ 833 ​ 348,420 External provider costs ​ 189,744 ​ — ​ 189,744 ​ 181,045 ​ — ​ 181,045 Cost of care, excluding depreciation and amortization ​ 104,595 ​ 338 ​ 104,933 ​ 82,579 ​ 1,060 ​ 83,639 Center-Level Contribution Margin ​ 43,908 ​ 89 ​ 43,997 ​ 83,963 ​ (227) ​ 83,736 Overhead costs (2) ​ 67,107 ​ 79 ​ 67,186 ​ 62,551 ​ (13) ​ 62,538 Depreciation and amortization ​ 6,881 ​ 214 ​ 7,095 ​ 6,370 ​ 215 ​ 6,585 Interest expense, net ​ (735) ​ (91) ​ (826) ​ (1,120) ​ (101) ​ (1,221) Other expense (income) ​ 480 ​ — ​ 480 ​ (464) ​ (1) ​ (465) Income (Loss) Before Income Taxes ​ $ (30,335) ​ $ (295) ​ $ (30,630) ​ $ 13,458 ​ $ (531) ​ $ 12,927 (1) Center-level Contribution Margin from segments below the quantitative thresholds are attributable to two operating segments of the Company. Those segments consist of Homecare and Senior Housing. Neither of those segments has ever met any of the quantitative thresholds for determining reportable segments. (2) Overhead consists of the Sales and marketing and Corporate, general and administrative financial statement line items.

Related Party Transactions

Related Party Transactions	6 Months Ended
	Dec. 31, 2022
Related Party Transactions
Related Party Transactions	Note 14: Pursuant to the PWD Amended and Restated Agreement of Limited Partnership, the general partner, who is a subsidiary of the Company (the “General Partner”), helped fund operating deficits and shortfalls of PWD in the form of a loan. At each of December 31, 2022 and June 30, 2022, $0.7 million was recorded in Deposits and other. Additionally, the General Partner is paid an administration fee of $35,000 per year.

Subsequent Events

Subsequent Events	6 Months Ended
	Dec. 31, 2022
Subsequent Events
Subsequent Events	Note 15: Subsequent Events On January 23, 2023, CMS and the Colorado Department of Healthcare Policy & Financing (“HCPF”) released the enrollment sanctions for all of our Colorado centers. CMS and HCPF will require the Company to conduct post-sanction corrective action and monitoring activities to address any issues identified during the validation audits. The release of both sanctions permits the Company to resume normal enrollment of eligible Colorado seniors into its PACE program at its six Colorado centers.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Dec. 31, 2022
Summary of Significant Accounting Policies
Basis of Preparation and Principles of Consolidation	Basis of Preparation and Principles of Consolidation The unaudited interim condensed consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to such regulations. These financial statements have been prepared on a basis consistent with the accounting principles applied for the fiscal year ended June 30, 2022. In the opinion of management, all adjustments (consisting of all normal and recurring adjustments) considered necessary for a fair presentation have been included. The condensed consolidated financial statements include the accounts of InnovAge, its wholly owned subsidiaries, variable interest entities (“VIEs”) for which it is the primary beneficiary and entities for which it has a controlling interest. All intercompany accounts and transactions have been eliminated in consolidation. The Company does not have any components of comprehensive income and comprehensive income is equal to net income (loss) reported in the statements of operations for all periods presented.
Property and Equipment	Property and Equipment Property and equipment were comprised of the following as of December 31, 2022 and June 30, 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Estimated ​ ​ ​ ​ dollars in thousands ​ Useful Lives ​ December 31, 2022 ​ June 30, 2022 Land N/A ​ $ 11,980 ​ $ 11,980 Buildings and leasehold improvements 10 - 40 years ​ 122,885 ​ 122,076 Software 3 - 5 years ​ 27,532 ​ 16,264 Equipment and vehicles 3 - 7 years ​ 49,847 ​ 47,546 Construction in progress N/A ​ 37,091 ​ 35,479 ​ ​ ​ 249,335 ​ ​ 233,345 Less: accumulated depreciation and amortization ​ ​ (63,561) ​ (57,085) Total property and equipment, net ​ ​ ​ $ 185,774 ​ $ 176,260 ​ Depreciation of $3.3 million and $2.8 million was recorded during the three months ended December 31, 2022 and 2021, respectively. Depreciation of $6.5 million and $6.1 million was recorded during the six months ended December 31, 2022 and 2021, respectively.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02 Leases Revenue from contracts with customers (Topic 606) and leases (Topic 842) – Effective dates for certain entities We adopted the new standard on July 1, 2022 using the modified retrospective transition approach as permitted in ASU 2018-11. In accordance with this approach, the effective date of Topic 842 is also the application date of the new requirements, with prior comparative periods presented in the financial statements with the legacy requirements of ASC Topic 840, Leases. We elected the package of practical expedients which permits us not to reassess under the new lease standard our prior conclusions for lease identification and lease classification on expired or existing contracts and whether initial direct costs previously capitalized would qualify for capitalization under the new lease standard. We also elected to adopt the optional transition method which allows an entity to recognize, if necessary, a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company did not elect the practical expedient to use hindsight in determining the lease term and in assessing impairment conclusions on the ROU assets. Comparative periods presented in the financial statements continue to be presented in accordance with GAAP related to leases prior to transitioning to the new lease standard. The adoption of Topic 842 resulted in the recognition of operating lease liabilities and ROU assets of $25.1 million and $23.6 million, respectively, while our accounting for capital leases (now referred to as finance leases) remained substantially unchanged. The impact of adopting Topic 842 was not material to our Statements of Operations and Statements of Cash Flows. See Note 7, “Leases.”
Recent Accounting Pronouncements Not Yet Adopted	​ Recent Accounting Pronouncements Not Yet Adopted Financial Instruments In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments ( ) We do not expect that any other recently issued accounting guidance will have a significant effect on our condensed consolidated financial statements.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Dec. 31, 2022
Summary of Significant Accounting Policies
Schedule of property and equipment	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Estimated ​ ​ ​ ​ dollars in thousands ​ Useful Lives ​ December 31, 2022 ​ June 30, 2022 Land N/A ​ $ 11,980 ​ $ 11,980 Buildings and leasehold improvements 10 - 40 years ​ 122,885 ​ 122,076 Software 3 - 5 years ​ 27,532 ​ 16,264 Equipment and vehicles 3 - 7 years ​ 49,847 ​ 47,546 Construction in progress N/A ​ 37,091 ​ 35,479 ​ ​ ​ 249,335 ​ ​ 233,345 Less: accumulated depreciation and amortization ​ ​ (63,561) ​ (57,085) Total property and equipment, net ​ ​ ​ $ 185,774 ​ $ 176,260

Revenue Recognition (Tables)

Revenue Recognition (Tables)	6 Months Ended
	Dec. 31, 2022
Revenue Recognition
Schedule of source of revenue	​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ ​ 2022 2021 Medicaid 55 % 54 % Medicare 45 % 46 % Private pay and other * % * % Total 100 % 100 % * Less than 1% ​
Schedule of concentration of net receivable	​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ June 30, ​ ​ 2022 2022 Medicaid 40 % 70 % Medicare 53 % 22 % Private pay and other 7 % 8 % Total 100 % 100 % ​

Investments (Tables)

Investments (Tables)	6 Months Ended
	Dec. 31, 2022
Investments
Schedule of equity method and cost method investments	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ June 30, in thousands 2022 2022 Cost method investments ​ $ 4,645 ​ $ 4,645 Equity method investments ​ 848 ​ 848 Total investments ​ $ 5,493 ​ $ 5,493 ​

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Dec. 31, 2022
Fair Value Measurements
Schedule of fair value of assets measured on recurring basis	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and ​ ​ Short- ​ ​ ​ ​ Amortized ​ ​ Unrealized ​ ​ Unrealized ​ ​ Fair ​ ​ Cash ​ ​ term ​ in thousands ​ ​ Cost ​ ​ Gains ​ ​ Losses ​ ​ Value ​ ​ Equivalents ​ ​ Investments ​ Cash ​ $ 18,858 ​ $ — ​ $ — ​ $ 18,858 ​ $ 18,858 ​ $ — ​ Level 1 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Money market funds ​ ​ 80,602 ​ ​ — ​ ​ — ​ ​ 80,602 ​ ​ 80,602 ​ ​ — ​ Mutual funds ​ ​ 45,000 ​ ​ 424 ​ ​ — ​ ​ 45,424 ​ ​ — ​ ​ 45,424 ​ Total ​ $ 144,460 ​ $ 424 ​ $ — ​ $ 144,884 ​ $ 99,460 ​ $ 45,424 ​ ​

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	6 Months Ended
	Dec. 31, 2022
Goodwill and Intangible Assets
Summary of intangible assets by major class	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, ​ June 30, in thousands 2022 2022 Definite-lived intangible assets ​ $ 6,600 ​ $ 6,600 Indefinite-lived intangible assets ​ ​ 2,000 ​ ​ 2,000 Total intangible assets ​ ​ 8,600 ​ ​ 8,600 Accumulated amortization ​ ​ (3,072) ​ ​ (2,742) Balance as of end of period ​ $ 5,528 ​ $ 5,858 ​

Leases (Tables)

Leases (Tables)	6 Months Ended
	Dec. 31, 2022
Leases
Schedule of assets and liabilities related to leases	​ ​ ​ ​ ​ Component of Lease Balances Balance Sheet Line Items ​ Six months ended December 31, ​ ​ ​ 2022 ​ ​ in thousands Assets: ​ ​ ​ Operating lease assets Operating lease assets $ 22,223 Finance lease assets Property and equipment, net 11,153 Total leased assets ​ $ 33,376 ​
Schedule of lease cost	​ ​ ​ ​ ​ Component of Lease Cost Statements of Operations Line Items ​ Six months ended December 31, ​ ​ ​ 2022 ​ ​ in thousands Operating lease cost Cost of care excluding depreciation and amortization and Corporate, general and administrative $ 2,557 Finance lease expense: ​ ​ ​ Amortization of leased assets Depreciation and amortization 1,685 Interest on lease liabilities Interest expense, net ​ 562 Variable lease cost Cost of care excluding depreciation and amortization and Corporate, general and administrative ​ — Short-term lease cost Cost of care excluding depreciation and amortization and Corporate, general and administrative ​ 17 Total lease expense ​ $ 4,821 ​
Schedule of weighted average lease terms and discount rates	​ ​ ​ ​ Weighted average remaining lease term: ​ December 31, ​ ​ 2022 Operating leases 8.8 years Finance leases ​ 3.8 years ​ ​ ​ ​ ​ Weighted average discount rate: ​ December 31, ​ ​ ​ 2022 ​ Operating leases 6.61 % Finance leases ​ 8.53 % ​
Schedule of future maturities of lease payments for operating leases	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating ​ Finance ​ ​ ​ in thousands ​ Lease ​ Lease ​ Total Amount remaining in 2023 ​ $ 2,552 ​ $ 2,580 ​ $ 5,132 2024 ​ 4,542 ​ 4,263 ​ 8,805 2025 ​ 4,136 ​ 3,480 ​ 7,616 2026 ​ 4,061 ​ 2,456 ​ 6,517 2027 ​ 3,764 ​ 1,760 ​ 5,524 Thereafter ​ 10,302 ​ 686 ​ 10,988 Total lease payments ​ 29,357 ​ 15,225 ​ 44,582 Less liability accretion / imputed interest ​ (5,889) ​ (2,329) ​ (8,218) Total lease liabilities ​ 23,468 ​ 12,896 ​ 36,364 Less: Current lease liabilities ​ 3,434 ​ 3,864 ​ 7,298 Total long-term lease liabilities ​ $ 20,034 ​ $ 9,032 ​ $ 29,066 ​
Schedule of future maturities of lease payments for finance leases	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating ​ Finance ​ ​ ​ in thousands ​ Lease ​ Lease ​ Total Amount remaining in 2023 ​ $ 2,552 ​ $ 2,580 ​ $ 5,132 2024 ​ 4,542 ​ 4,263 ​ 8,805 2025 ​ 4,136 ​ 3,480 ​ 7,616 2026 ​ 4,061 ​ 2,456 ​ 6,517 2027 ​ 3,764 ​ 1,760 ​ 5,524 Thereafter ​ 10,302 ​ 686 ​ 10,988 Total lease payments ​ 29,357 ​ 15,225 ​ 44,582 Less liability accretion / imputed interest ​ (5,889) ​ (2,329) ​ (8,218) Total lease liabilities ​ 23,468 ​ 12,896 ​ 36,364 Less: Current lease liabilities ​ 3,434 ​ 3,864 ​ 7,298 Total long-term lease liabilities ​ $ 20,034 ​ $ 9,032 ​ $ 29,066 ​
Schedule of operating lease minimum lease payments	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating ​ Capital in thousands ​ Lease ​ Lease Amount remaining in 2023 ​ $ 4,873 ​ $ 4,405 2024 ​ 4,581 ​ 3,909 2025 ​ 4,122 ​ 3,126 2026 ​ 4,061 ​ 2,092 2027 ​ 3,764 ​ 1,393 Thereafter ​ 10,265 ​ 535 Total minimal rental payments ​ 31,666 ​ 15,460 Less: Amount representing interest ​ ​ ​ ​ (2,652) Subtotal ​ ​ ​ ​ 12,808 Current portion ​ ​ ​ ​ 3,368 Long-term portion ​ ​ ​ ​ $ 9,440 ​
Schedule of capital lease minimum lease payments	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating ​ Capital in thousands ​ Lease ​ Lease Amount remaining in 2023 ​ $ 4,873 ​ $ 4,405 2024 ​ 4,581 ​ 3,909 2025 ​ 4,122 ​ 3,126 2026 ​ 4,061 ​ 2,092 2027 ​ 3,764 ​ 1,393 Thereafter ​ 10,265 ​ 535 Total minimal rental payments ​ 31,666 ​ 15,460 Less: Amount representing interest ​ ​ ​ ​ (2,652) Subtotal ​ ​ ​ ​ 12,808 Current portion ​ ​ ​ ​ 3,368 Long-term portion ​ ​ ​ ​ $ 9,440 ​

Long-Term Debt (Tables)

Long-Term Debt (Tables)	6 Months Ended
	Dec. 31, 2022
Long-Term Debt
Schedule of long-term debt	​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, June 30, ​ ​ 2022 ​ 2022 ​ ​ in thousands Senior secured borrowings: ​ ​ ​ ​ ​ ​ Term Loan Facility ​ $ 69,375 ​ $ 71,250 Convertible term loan ​ 2,306 ​ 2,327 Total debt ​ 71,681 ​ 73,577 Less: unamortized debt issuance costs ​ 1,359 ​ 1,574 Less: current maturities ​ 3,794 ​ 3,793 Noncurrent maturities ​ $ 66,528 ​ $ 68,210 ​

Stock-based Compensation (Table

Stock-based Compensation (Tables)	6 Months Ended
	Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Schedule of stock-based compensation expense	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Six months ended December 31, ​ Three months ended December 31, ​ 2022 2021 ​ 2022 2021 ​ in thousands ​ in thousands ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stock options $ 533 ​ $ 90 ​ $ 261 ​ $ 90 Profits interests units 456 ​ 1,029 ​ 202 ​ 439 Restricted stock units ​ 1,523 ​ ​ 622 ​ ​ 749 ​ ​ 254 Total stock-based compensation expense $ 2,512 ​ $ 1,741 ​ $ 1,212 ​ $ 783 ​
Profits Interests Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Summary of profits interests transactions and number of units outstanding	​ ​ ​ ​ ​ ​ ​ ​ ​ Number of ​ Weighted average Time-based unit awards ​ units ​ grant date fair value ​ ​ ​ ​ ​ ​ Outstanding balance, June 30, 2022 2,158,072 ​ $ 1.28 Granted ​ — ​ $ — Forfeited (49,654) ​ $ 1.28 Vested ​ (844,081) ​ $ 1.28 Outstanding balance, December 31, 2022 1,264,337 ​ $ 1.28 ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of ​ Weighted average Performance-based unit awards ​ units ​ grant date fair value ​ ​ ​ ​ ​ ​ Outstanding balance, June 30, 2022 2,217,865 ​ $ 0.57 Granted ​ — ​ $ — Forfeited (99,307) ​ $ 0.57 Vested ​ — ​ $ — Outstanding balance, December 31, 2022 2,118,558 ​ $ 0.57 ​
Performance Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Summary of restricted stock units activity	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ average ​ ​ Number of ​ ​ grant-date fair Restricted stock units - performance based ​ awards ​ ​ value per share ​ ​ ​ ​ ​ ​ Outstanding balance, June 30, 2022 258,767 ​ $ 5.18 Granted ​ — ​ $ — Forfeited ​ — ​ $ — Vested — ​ $ — Outstanding balance, December 31, 2022 258,767 ​ $ 5.18 ​
Time Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Summary of restricted stock units activity	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ average ​ ​ Number of ​ ​ grant-date fair Restricted stock units - time based ​ awards ​ ​ value per share ​ ​ ​ ​ ​ ​ Outstanding balance, June 30, 2022 476,768 ​ $ 9.69 Granted 986,200 ​ $ 5.97 Forfeited ​ (155,741) ​ $ 5.48 Vested ​ (97,727) ​ $ 4.50 Outstanding balance, December 31, 2022 1,209,500 ​ $ 6.41 ​
Time-based option awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Summary of weighted-average assumptions	​ ​ ​ ​ ​ ​ ​ ​ 2022 ​ Expected volatility ​ ​ 34.5 % Weighted-average expected life (years) - time vesting units ​ ​ 2.9 ​ Interest rate ​ 1.56 % Dividend yield ​ 0 % Weighted-average fair values ​ $ 0.80 ​ Fair value of underlying stock $ 3.70 ​ ​
Summary of stock option activity	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ average ​ ​ Number of ​ ​ grant-date fair Stock options - time based ​ awards ​ ​ value per share ​ ​ ​ ​ ​ ​ Outstanding balance, June 30, 2022 554,499 ​ $ 1.61 Granted 81,082 ​ $ 0.80 Forfeited ​ — ​ $ — Vested ​ (138,624) ​ $ 0.28 Outstanding balance, December 31, 2022 496,957 ​ $ 0.90 ​
Performance-based option awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Summary of stock option activity	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ average ​ ​ Number of ​ ​ grant-date fair Stock options - performance based ​ awards ​ ​ value per share ​ ​ ​ ​ ​ ​ Outstanding balance, June 30, 2022 776,299 ​ $ 3.08 Granted — ​ $ — Forfeited ​ — ​ $ — Vested ​ — ​ $ — Outstanding balance, December 31, 2022 776,299 ​ $ 3.08 ​

Earnings per Share (Tables)

Earnings per Share (Tables)	6 Months Ended
	Dec. 31, 2022
Earnings per Share
Schedule of earnings per share	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three months ended December 31, Six months ended December 31, in thousands, except share values 2022 2021 2022 2021 Net income (loss) attributable to InnovAge Holding Corp. ​ $ (9,793) ​ $ 1,323 ​ $ (22,866) ​ $ 9,009 Weighted average common shares outstanding (basic) ​ 135,578,888 ​ 135,516,513 ​ 135,572,503 ​ 135,516,513 EPS (basic) ​ $ (0.07) ​ $ 0.01 ​ $ (0.17) ​ $ 0.07 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Dilutive shares ​ — ​ — ​ — ​ — Weighted average common shares outstanding (diluted) ​ 135,578,888 ​ 135,516,513 ​ 135,572,503 ​ 135,516,513 EPS (diluted) ​ $ (0.07) ​ $ 0.01 ​ $ (0.17) ​ $ 0.07 ​

Segment Reporting (Tables)

Segment Reporting (Tables)	6 Months Ended
	Dec. 31, 2022
Segment Reporting
Schedule of operating results by reportable segments	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2022 ​ December 31, 2021 (In thousands) PACE All other (1) Totals PACE All other (1) Totals Capitation revenue ​ $ 167,140 ​ $ — ​ $ 167,140 ​ $ 174,964 ​ $ — ​ $ 174,964 Other service revenue ​ 99 ​ 217 ​ 316 ​ 60 ​ 326 ​ 386 Total revenues ​ 167,239 ​ 217 ​ 167,456 ​ 175,024 ​ 326 ​ 175,350 External provider costs ​ 93,507 ​ — ​ 93,507 ​ 91,033 ​ — ​ 91,033 Cost of care, excluding depreciation and amortization ​ 51,184 ​ 192 ​ 51,376 ​ 42,478 ​ 433 ​ 42,911 Center-Level Contribution Margin ​ 22,548 ​ 25 ​ 22,573 ​ 41,513 ​ (107) ​ ​ 41,406 Overhead costs (2) ​ 32,532 ​ 59 ​ 32,591 ​ 35,160 ​ 1 ​ 35,161 Depreciation and amortization ​ 3,555 ​ 107 ​ 3,662 ​ 3,185 ​ 107 ​ 3,292 Interest expense, net ​ (177) ​ (46) ​ (223) ​ (624) ​ (50) ​ (674) Other expense (income) ​ 444 ​ — ​ 444 ​ 29 ​ (1) ​ 28 Income (Loss) Before Income Taxes ​ $ (13,272) ​ $ (187) ​ $ (13,459) ​ $ 2,573 ​ $ (266) ​ $ 2,307 ​ The following table summarizes the operating results regularly provided to the CODM by reportable segment for the six months ended December 31, 2022 and 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2022 ​ December 31, 2021 in thousands PACE All other (1) Totals PACE All other (1) Totals Capitation revenue ​ $ 338,071 ​ $ — ​ $ 338,071 ​ $ 347,518 ​ $ — ​ $ 347,518 Other service revenue ​ 176 ​ 427 ​ 603 ​ 69 ​ 833 ​ 902 Total revenues ​ 338,247 ​ 427 ​ 338,674 ​ 347,587 ​ 833 ​ 348,420 External provider costs ​ 189,744 ​ — ​ 189,744 ​ 181,045 ​ — ​ 181,045 Cost of care, excluding depreciation and amortization ​ 104,595 ​ 338 ​ 104,933 ​ 82,579 ​ 1,060 ​ 83,639 Center-Level Contribution Margin ​ 43,908 ​ 89 ​ 43,997 ​ 83,963 ​ (227) ​ 83,736 Overhead costs (2) ​ 67,107 ​ 79 ​ 67,186 ​ 62,551 ​ (13) ​ 62,538 Depreciation and amortization ​ 6,881 ​ 214 ​ 7,095 ​ 6,370 ​ 215 ​ 6,585 Interest expense, net ​ (735) ​ (91) ​ (826) ​ (1,120) ​ (101) ​ (1,221) Other expense (income) ​ 480 ​ — ​ 480 ​ (464) ​ (1) ​ (465) Income (Loss) Before Income Taxes ​ $ (30,335) ​ $ (295) ​ $ (30,630) ​ $ 13,458 ​ $ (531) ​ $ 12,927 (1) Center-level Contribution Margin from segments below the quantitative thresholds are attributable to two operating segments of the Company. Those segments consist of Homecare and Senior Housing. Neither of those segments has ever met any of the quantitative thresholds for determining reportable segments. (2) Overhead consists of the Sales and marketing and Corporate, general and administrative financial statement line items.

Business (Details)

Business (Details) - PACE	6 Months Ended
	Dec. 31, 2022 segment item Center
Segment Reporting Information [Line Items]
Number of PACE centers excluding non-consolidating joint ventures | Center	18
Percentage of obligation for health care costs	100%
Operating segments
Segment Reporting Information [Line Items]
Number of reportable segments | segment	1
Number of PACE participants | item	6,460

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Jun. 30, 2022
Summary of Significant Accounting Policies
Property and equipment gross	$ 249,335		$ 249,335		$ 233,345
Less accumulated depreciation and amortization	(63,561)		(63,561)		(57,085)
Total property and equipment, net	185,774		185,774		176,260
Depreciation	3,300	$ 2,800	6,500	$ 6,100
Land
Summary of Significant Accounting Policies
Property and equipment gross	11,980		11,980		11,980
Buildings and leasehold improvements
Summary of Significant Accounting Policies
Property and equipment gross	122,885		$ 122,885		122,076
Buildings and leasehold improvements | Minimum
Summary of Significant Accounting Policies
Estimated Useful Lives			10 years
Buildings and leasehold improvements | Maximum
Summary of Significant Accounting Policies
Estimated Useful Lives			40 years
Software
Summary of Significant Accounting Policies
Property and equipment gross	27,532		$ 27,532		16,264
Software | Minimum
Summary of Significant Accounting Policies
Estimated Useful Lives			3 years
Software | Maximum
Summary of Significant Accounting Policies
Estimated Useful Lives			5 years
Equipment and vehicles
Summary of Significant Accounting Policies
Property and equipment gross	49,847		$ 49,847		47,546
Equipment and vehicles | Minimum
Summary of Significant Accounting Policies
Estimated Useful Lives			3 years
Equipment and vehicles | Maximum
Summary of Significant Accounting Policies
Estimated Useful Lives			7 years
Construction in progress
Summary of Significant Accounting Policies
Property and equipment gross	$ 37,091		$ 37,091		$ 35,479

Summary of Significant Accoun_5

Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Jul. 01, 2022
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease liabilities	$ 23,468
Operating lease assets	$ 22,223
Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease liabilities		$ 25,100
Operating lease assets		$ 23,600

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Jun. 30, 2022
Revenue Recognition
Pooled capitated payment			100%
Allowances for uncollectable accounts	$ 4,202		$ 4,202		$ 3,403
Amortization period of cost to obtain contract			3 years
Contract assets	$ 500		$ 500		$ 0
Capitated revenues | Customer concentration risk
Revenue Recognition
Risk percentage			100%	100%
Medicare Part D | Capitated revenues | Customer concentration risk
Revenue Recognition
Risk percentage	12%	12%	12%	12%
Senior Housing | Other service revenue | Customer concentration risk
Revenue Recognition
Risk percentage	0.20%	0.20%	0.20%	0.30%
Medicaid | Capitated revenues | Customer concentration risk
Revenue Recognition
Risk percentage			55%	54%

Revenue Recognition - Source of

Revenue Recognition - Source of Revenue (Details) - Capitated revenues - Customer concentration risk	6 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Disaggregation of Revenue [Line Items]
Risk percentage	100%	100%
Medicaid
Disaggregation of Revenue [Line Items]
Risk percentage	55%	54%
Medicare
Disaggregation of Revenue [Line Items]
Risk percentage	45%	46%
Private pay and other | Maximum
Disaggregation of Revenue [Line Items]
Risk percentage	1%

Revenue Recognition - Concentra

Revenue Recognition - Concentration of Net Receivable (Details) - Accounts Receivable - Customer concentration risk	6 Months Ended	12 Months Ended
	Dec. 31, 2022	Jun. 30, 2022
Disaggregation of Revenue [Line Items]
Risk percentage	100%	100%
Medicaid
Disaggregation of Revenue [Line Items]
Risk percentage	40%	70%
Medicare
Disaggregation of Revenue [Line Items]
Risk percentage	53%	22%
Private pay and other
Disaggregation of Revenue [Line Items]
Risk percentage	7%	8%

Investments - Equity Method and

Investments - Equity Method and Cost Method Investments (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Jun. 30, 2022
Investments
Cost method investments	$ 4,645	$ 4,645
Equity method investments	848	848
Total investments	$ 5,493	$ 5,493

Investments (Details)

Investments (Details)		1 Months Ended	6 Months Ended		12 Months Ended
	Mar. 18, 2019 USD ($)	Aug. 31, 2021 USD ($) shares	Dec. 31, 2022 USD ($) item	Dec. 31, 2021 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($)	Apr. 02, 2020 USD ($)	Jun. 14, 2019 USD ($)
Investments
Number of investments | item			2
Observable price changes			$ 0	$ 0
Cash consideration				$ 2,000,000
Cash	$ 9,000,000		99,460,000			$ 184,429,000
Land	$ 4,200,000
Redeemable noncontrolling interests			14,100,000
InnovAge Sacramento
Investments
Membership interest (as a percent)	59.90%
InnovAge Sacramento
Investments
Percentage of additional membership interest					0.10%
PWD
Investments
Maximum exposure amount in VIE			$ 800,000
SH1
Investments
Partnership interest (as a percent)			0.01%
InnovAge California Pace-Sacramento, LLC
Investments
Cash contributions					$ 52,000
InnovAge California Pace-Sacramento, LLC | Adventist Health System/West Joint Venture
Investments
Cash contributions	$ 5,800,000
InnovAge California Pace-Sacramento, LLC | Eskaton
Investments
Cash contributions	$ 3,000,000
InnovAge California Pace-Sacramento, LLC | InnovAge Sacramento | Adventist Health System/West Joint Venture
Investments
Membership interest (as a percent)	26.40%
InnovAge California Pace-Sacramento, LLC | InnovAge Sacramento | Eskaton
Investments
Membership interest (as a percent)	13.70%
Jetdoc, Inc.
Investments
Shares acquired | shares		806,481
Cash consideration		$ 2,000,000
Maximum exposure to loss of the cost method investments		$ 2,000,000
Dispatch Health Holdings, Inc.
Investments
Maximum exposure to loss of the cost method investments							$ 2,600,000
Series B Preferred Stock | Dispatch Health Holdings, Inc.
Investments
Investments in securities								$ 1,500,000
Series C Preferred Stock | Dispatch Health Holdings, Inc.
Investments
Investments in securities							$ 1,100,000

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($)	6 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Sep. 30, 2022	Jun. 30, 2022	Sep. 30, 2021	Jun. 30, 2021
Fair Value Measurements
Redeemable Noncontrolling Interests	$ 14,054,000	$ 18,850,000	$ 14,734,000	$ 15,278,000	$ 16,431,000	$ 16,986,000
Transfers into Level 3	0	0
Transfers out of Level 3	$ 0	$ 0

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value of Assets Measured on Recurring Basis (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Fair values, Assets Measured on a Recurring Basis
Amortized Cost	$ 144,460
Unrealized Gains	424
Fair Value	144,884
Cash and Cash Equivalents	99,460
Short-term Investments	45,424
Cash
Fair values, Assets Measured on a Recurring Basis
Amortized Cost	18,858
Fair Value	18,858
Cash and Cash Equivalents	18,858
Money market funds | Level 1
Fair values, Assets Measured on a Recurring Basis
Amortized Cost	80,602
Fair Value	80,602
Cash and Cash Equivalents	80,602
Mutual funds | Level 1
Fair values, Assets Measured on a Recurring Basis
Amortized Cost	45,000
Unrealized Gains	424
Fair Value	45,424
Short-term Investments	$ 45,424

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2022 USD ($) item	Dec. 31, 2021 USD ($)	Jun. 30, 2022 USD ($)
Goodwill and Intangible Assets
Goodwill	$ 124,217		$ 124,217		$ 124,217
Number of reporting units | item			3
Impairment of goodwill			$ 0	$ 0
Amortization expense	$ 200	$ 200	300	300
Intangible asset impairments			$ 0	$ 0

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Intangible Asset by Major Class (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Jun. 30, 2022
Intangible Assets, Net (Including Goodwill) [Abstract]
Definite-lived intangible assets	$ 6,600	$ 6,600
Indefinite-lived intangible assets	2,000	2,000
Total intangible assets	8,600	8,600
Accumulated amortization	(3,072)	(2,742)
Balance as of end of period	$ 5,528	$ 5,858

Leases - Balance Sheet Classifi

Leases - Balance Sheet Classification (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Assets:
Operating lease assets	$ 22,223
Finance lease assets	$ 11,153
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Property, Plant and Equipment, Net
Total leased assets	$ 33,376

Leases - Components of Lease Co

Leases - Components of Lease Cost (Details) $ in Thousands	6 Months Ended
	Dec. 31, 2022 USD ($)
Components of lease cost
Total lease expense	$ 4,821
Cost of care excluding depreciation and amortization and Corporate, general and administrative
Components of lease cost
Operating lease cost	2,557
Short-term lease cost	17
Depreciation and amortization
Components of lease cost
Amortization of leased assets	1,685
Interest expense, net
Components of lease cost
Interest on lease liabilities	$ 562

Leases - Weighted-Average Lease

Leases - Weighted-Average Lease Terms and Discount Rates (Details)	Dec. 31, 2022
Leases
Weighted average remaining lease term, Operating leases	8 years 9 months 18 days
Weighted average remaining lease term, Finance leases	3 years 9 months 18 days
Weighted average discount rate, Operating leases	6.61%
Weighted average discount rate, Finance leases	8.53%

Leases - Future Maturities of L

Leases - Future Maturities of Lease Payments (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Jun. 30, 2022
Operating Lease
Amount remaining in 2023	$ 2,552
2024	4,542
2025	4,136
2026	4,061
2027	3,764
Thereafter	10,302
Total lease payments	29,357
Less liability accretion / imputed interest	(5,889)
Total lease liabilities	23,468
Less: Current lease liabilities	3,434
Total long-term lease liabilities	20,034
Finance Lease
Amount remaining in 2023	2,580
2024	4,263
2025	3,480
2026	2,456
2027	1,760
Thereafter	686
Total lease payments	15,225
Less liability accretion / imputed interest	(2,329)
Total lease liabilities	12,896
Less: Current lease liabilities	3,864	$ 3,368
Total long-term lease liabilities	9,032	$ 9,440
Lease liability
Amount remaining in 2023	5,132
2024	8,805
2025	7,616
2026	6,517
2027	5,524
Thereafter	10,988
Total lease payments	44,582
Less liability accretion / imputed interest	(8,218)
Total lease liabilities	36,364
Less: Current lease liabilities	7,298
Total long-term lease liabilities	$ 29,066

Leases - Future Minimum Lease P

Leases - Future Minimum Lease Payments (Details) $ in Thousands	Jun. 30, 2022 USD ($)
Operating Lease
Amount Remaining in 2023	$ 4,873
2024	4,581
2025	4,122
2026	4,061
2027	3,764
Thereafter	10,265
Total minimal rental payments	31,666
Capital Leases
Amount Remaining in 2023	4,405
2024	3,909
2025	3,126
2026	2,092
2027	1,393
Thereafter	535
Total minimal rental payments	15,460
Less: Amount representing interest	(2,652)
Subtotal	12,808
Current portion	3,368
Long-term portion	$ 9,440

Long-Term Debt - Schedule of Lo

Long-Term Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Jun. 30, 2022
Debt Instrument [Line Items]
Total debt	$ 71,681	$ 73,577
Less unamortized debt issuance costs	1,359	1,574
Less current maturities	3,794	3,793
Noncurrent maturities	66,528	68,210
Senior secured term loan
Debt Instrument [Line Items]
Total debt	69,375	71,250
Convertible term loan
Debt Instrument [Line Items]
Total debt	$ 2,306	$ 2,327

Long-Term Debt (Details)

Long-Term Debt (Details) - USD ($)			6 Months Ended
	Mar. 08, 2021	Sep. 01, 2015	Dec. 31, 2022	Jun. 30, 2022
Debt Instrument [Line Items]
Outstanding borrowings			$ 71,681,000	$ 73,577,000
Revolving credit facility
Debt Instrument [Line Items]
Remaining borrowing capacity			97,200,000
Letters of credit, issued amounts			2,800,000
Senior secured term loan
Debt Instrument [Line Items]
Outstanding borrowings			69,375,000	71,250,000
Convertible term loan
Debt Instrument [Line Items]
Outstanding borrowings			2,306,000	$ 2,327,000
Interest rate (as a percent)		6.68%
Monthly principal and interest payments		$ 20,000
2021 Credit Agreement | Revolving credit facility
Debt Instrument [Line Items]
Loan amount	$ 100,000,000
Outstanding borrowings			0
Amortization of deferred financing costs			200,000
Deferred financing costs amortized			$ 2,000,000
Revolving credit facility fee	0.25%
2021 Credit Agreement | Senior secured term loan
Debt Instrument [Line Items]
Loan amount	$ 75,000,000
Percentage of aggregate outstanding principal amount	1.25%
Interest rate (as a percent)			6.14%

Stock-based Compensation - Comp

Stock-based Compensation - Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	$ 2,512	$ 1,741	$ 1,212	$ 783
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	533	90	261	90
Profits Interests Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	456	1,029	202	439
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	$ 1,523	$ 622	$ 749	$ 254

Stock-based Compensation - Prof

Stock-based Compensation - Profits Interests (Details) - 2020 Equity Incentive Plan	6 Months Ended
	Dec. 31, 2022 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Profits interests granted	13,009,137
Granted (in shares)	0
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized	16,162,177

Stock-based Compensation - Mont

Stock-based Compensation - Monte Carlo Option Pricing Model (Details) $ / shares in Units, $ in Millions	6 Months Ended
	Dec. 31, 2022 USD ($) $ / shares
Profits Interests Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	$ 2.5
Time Vesting Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	$ 1.3
Weighted-average period (in years)	10 months 24 days
Performance Vesting Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	$ 1.2
Time-based options awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	34.50%
Expected term (in years)	2 years 10 months 24 days
Interest rate	1.56%
Dividend yield	0%
Weighted-average fair values | $ / shares	$ 0.80
Fair value of underlying stock | $ / shares	$ 3.70
Weighted-average period (in years)	2 years 4 months 24 days
Performance-Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	$ 1
Weighted-average period (in years)	2 years 9 months 18 days
Time-Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	$ 5.1
Weighted-average period (in years)	2 years 3 months 18 days

Stock-based Compensation - Pr_2

Stock-based Compensation - Profits Interests Transactions and Number of Units Outstanding (Details)	6 Months Ended
	Dec. 31, 2022 $ / shares shares
Time Vesting Units
Number of Units
Outstanding balance, June 30, 2022 | shares	2,158,072
Forfeited | shares	(49,654)
Vested (in shares) | shares	(844,081)
Outstanding balance, December 31, 2022 | shares	1,264,337
Weighted-Average Grant Date FV
Outstanding balance, June 30, 2022 | $ / shares	$ 1.28
Forfeited | $ / shares	1.28
Vested | $ / shares	1.28
Outstanding balance, December 31, 2022 | $ / shares	$ 1.28
Performance Vesting Units
Number of Units
Outstanding balance, June 30, 2022 | shares	2,217,865
Forfeited | shares	(99,307)
Outstanding balance, December 31, 2022 | shares	2,118,558
Weighted-Average Grant Date FV
Outstanding balance, June 30, 2022 | $ / shares	$ 0.57
Forfeited | $ / shares	0.57
Outstanding balance, December 31, 2022 | $ / shares	$ 0.57

Stock-based Compensation - 2021

Stock-based Compensation - 2021 Omnibus Incentive Plan (Details)	6 Months Ended
	Dec. 31, 2022 shares
2021 Omnibus Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized	14,700,000
Vesting period	3 years
Percentage of vesting	33.33%
Time-Based Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years

Stock-based Compensation - 20_2

Stock-based Compensation - 2021 Omnibus Incentive Plan (RSU Activity) (Details)	6 Months Ended
	Dec. 31, 2022 $ / shares shares
Time-Based Restricted Stock Units
Number of Units
Outstanding balance, June 30, 2022 | shares	476,768
Granted | shares	986,200
Forfeited | shares	(155,741)
Vested (in shares) | shares	(97,727)
Outstanding balance, December 31, 2022 | shares	1,209,500
Weighted-Average Grant Date FV
Outstanding balance, June 30, 2022 | $ / shares	$ 9.69
Granted | $ / shares	5.97
Forfeited | $ / shares	5.48
Vested | $ / shares	4.50
Outstanding balance, December 31, 2022 | $ / shares	$ 6.41
Performance-Based Restricted Stock Units | 2021 Omnibus Incentive Plan
Number of Units
Outstanding balance, June 30, 2022 | shares	258,767
Outstanding balance, December 31, 2022 | shares	258,767
Weighted-Average Grant Date FV
Outstanding balance, June 30, 2022 | $ / shares	$ 5.18
Outstanding balance, December 31, 2022 | $ / shares	$ 5.18

Stock-based Compensation - Time

Stock-based Compensation - Time-based Awards (Details) - Time-based options awards $ / shares in Units, $ in Millions	6 Months Ended
	Dec. 31, 2022 USD ($) $ / shares shares
Number of Options
Outstanding balance, June 30, 2022 | shares	554,499
Granted (in shares) | shares	81,082
Vested (in shares) | shares	(138,624)
Outstanding balance, December 31, 2022 | shares	496,957
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Outstanding balance, June 30, 2022 | $ / shares	$ 1.61
Granted | $ / shares	0.80
Vested | $ / shares	0.28
Outstanding balance, December 31, 2022 | $ / shares	$ 0.90
Unrecognized compensation cost | $	$ 0.5
Weighted-average period (in years)	2 years 4 months 24 days

Stock-based Compensation - Perf

Stock-based Compensation - Performance-based Awards (Details) - Performance-based option awards - USD ($) $ / shares in Units, $ in Millions	6 Months Ended
	Dec. 31, 2022	Jun. 30, 2022
Number of Options
Outstanding balance, June 30, 2022	776,299
Outstanding balance, December 31, 2022	776,299
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Outstanding balance, June 30, 2022	$ 3.08	$ 3.08
Outstanding balance, December 31, 2022	$ 3.08
Unrecognized compensation cost	$ 1.7
Weighted-average period (in years)	2 years 10 months 24 days

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021	Jun. 30, 2022
Income Taxes
Income tax expense (benefit)	$ (2,912)	$ 1,201	$ (6,383)	$ 4,197
Effective tax rate (as a percent)	20.90%	32.50%	20.90%	32.50%
Valuation allowance	$ 4,100		$ 4,100		$ 4,100

Earnings per Share (Details)

Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Earnings per Share
Dilutive shares	424,316	0	14,076	0
Net income (loss) attributable to InnovAge Holding Corp.	$ (9,793)	$ 1,323	$ (22,866)	$ 9,009
Weighted average common shares outstanding (basic)	135,578,888	135,516,513	135,572,503	135,516,513
EPS (basic)	$ (0.07)	$ 0.01	$ (0.17)	$ 0.07
Weighted average common shares outstanding (diluted)	135,578,888	135,516,513	135,572,503	135,516,513
EPS (diluted)	$ (0.07)	$ 0.01	$ (0.17)	$ 0.07

Segment Reporting (Details)

Segment Reporting (Details)	6 Months Ended
	Dec. 31, 2022 segment division
PACE
Segment Reporting Information [Line Items]
Number of operating segments	3
Operating segments
Segment Reporting Information [Line Items]
Number of operating segments	5
Operating segments | PACE
Segment Reporting Information [Line Items]
Number of geographic divisions | division	3
Number of reportable segments	1
Operating segments | Others
Segment Reporting Information [Line Items]
Number of operating segments	2

Segment Reporting - Operating R

Segment Reporting - Operating Results (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2021
Segment Reporting Information [Line Items]
Total revenues	$ 167,456	$ 175,350	$ 338,674	$ 348,420
External provider costs	93,507	91,033	189,744	181,045
Cost of care, excluding depreciation and amortization	51,376	42,911	104,933	83,639
Interest expense, net	(223)	(674)	(826)	(1,221)
Other expense (income)	(444)	(28)	(480)	465
Income (Loss) Before Income Taxes	(13,459)	2,307	(30,630)	12,927
Capitation revenue
Segment Reporting Information [Line Items]
Total revenues	167,140	174,964	338,071	347,518
Other service revenue
Segment Reporting Information [Line Items]
Total revenues	316	386	603	902
Operating segments
Segment Reporting Information [Line Items]
Total revenues	167,456	175,350	338,674	348,420
External provider costs	93,507	91,033	189,744	181,045
Cost of care, excluding depreciation and amortization	51,376	42,911	104,933	83,639
Center-Level Contribution Margin	22,573	41,406	43,997	83,736
Overhead costs	32,591	35,161	67,186	62,538
Depreciation and amortization	3,662	3,292	7,095	6,585
Interest expense, net	(223)	(674)	(826)	(1,221)
Other expense (income)	444	28	480	(465)
Income (Loss) Before Income Taxes	(13,459)	2,307	(30,630)	12,927
Operating segments | Capitation revenue
Segment Reporting Information [Line Items]
Total revenues	167,140	174,964	338,071	347,518
Operating segments | Other service revenue
Segment Reporting Information [Line Items]
Total revenues	316	386	603	902
Operating segments | PACE
Segment Reporting Information [Line Items]
Total revenues	167,239	175,024	338,247	347,587
External provider costs	93,507	91,033	189,744	181,045
Cost of care, excluding depreciation and amortization	51,184	42,478	104,595	82,579
Center-Level Contribution Margin	22,548	41,513	43,908	83,963
Overhead costs	32,532	35,160	67,107	62,551
Depreciation and amortization	3,555	3,185	6,881	6,370
Interest expense, net	(177)	(624)	(735)	(1,120)
Other expense (income)	444	29	480	(464)
Income (Loss) Before Income Taxes	(13,272)	2,573	(30,335)	13,458
Operating segments | PACE | Capitation revenue
Segment Reporting Information [Line Items]
Total revenues	167,140	174,964	338,071	347,518
Operating segments | PACE | Other service revenue
Segment Reporting Information [Line Items]
Total revenues	99	60	176	69
Operating segments | Others
Segment Reporting Information [Line Items]
Total revenues	217	326	427	833
Cost of care, excluding depreciation and amortization	192	433	338	1,060
Center-Level Contribution Margin	25	(107)	89	(227)
Overhead costs	59	1	79	(13)
Depreciation and amortization	107	107	214	215
Interest expense, net	(46)	(50)	(91)	(101)
Other expense (income)		(1)		(1)
Income (Loss) Before Income Taxes	(187)	(266)	(295)	(531)
Operating segments | Others | Other service revenue
Segment Reporting Information [Line Items]
Total revenues	$ 217	$ 326	$ 427	$ 833

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($)	6 Months Ended
	Dec. 31, 2022	Jun. 30, 2022
Related Party Transaction [Line Items]
Revenue from related parties	$ 35,000
Deposits and other
Related Party Transaction [Line Items]
Loans and leases receivable, related parties	$ 700,000	$ 700,000