Apollo Medical Holdings, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Variable Interest Entities (VIEs) (Tables)

Variable Interest Entities (VIEs) (Tables)

9 Months Ended

Sep. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Assets and Liabilities, Variable Interest Entities

The following table includes assets that can only be used to settle the liabilities of APC and its VIEs, including Alpha Care and Accountable Health Care and to which the creditors of ApolloMed have no recourse, and liabilities to which the creditors of APC, including Alpha Care and Accountable Health Care, have no recourse to the general credit of ApolloMed, as the primary beneficiary of the VIEs. These assets and liabilities, with the exception of the investment in a privately held entity that does not report net asset value per share and amounts due to affiliates, which are eliminated upon consolidation with NMM, are included in the accompanying consolidated balance sheets (in thousands). The assets and liabilities of the Company’s other consolidated VIEs were not considered significant.


	September 30, 2021		December 31, 2020
Assets

Current assets
Cash and cash equivalents	$	121,258	$	126,158
Investment in marketable securities	124,569		67,637
Receivables, net	15,927		5,155
Receivables, net – related party	50,454		46,718
Income taxes receivable	4,267		—
Other receivables	293		1,084
Prepaid expenses and other current assets	9,808		14,863
Loan receivable – related party	4,000		—
Amount due from affiliate	15,764		—
Total current assets	346,340		261,615

Noncurrent assets
Land, property and equipment, net	47,253		27,599
Intangible assets, net	61,140		69,250
Goodwill	109,460		109,460
Loans receivable – related parties	104		4,145
Investment in affiliates	994,785		225,144
Investments in other entities – equity method	45,046		43,516
Investment in privately held entities	405		36,584
Restricted cash	—		500
Operating lease right-of-use assets	5,258		6,298
Other assets	2,533		17,177

Total noncurrent assets	1,265,984		539,673

Total assets	$	1,612,324	$	801,288

Current liabilities


	September 30, 2021		December 31, 2020
Accounts payable and accrued expenses	$	15,202	$	12,963
Fiduciary accounts payable	8,827		9,642
Medical liabilities	34,998		37,684
Income taxes payable	—		4,225
Dividends payable	556		485
Amount due to affiliate	—		22,698
Current portion of long-term debt	207		201
Finance lease liabilities	110		102
Operating lease liabilities	1,231		1,242

Total current liabilities	61,131		89,242

Noncurrent liabilities
Long-term debt, net of current portion and deferred financing costs	7,245		7,379
Deferred tax liability	18,941		9,144
Finance lease liabilities, net of current portion	221		311
Operating lease liabilities, net of current portion	4,262		5,242
Other long-term liabilities	1,010		—

Total noncurrent liabilities	31,679		22,076

Total liabilities	$	92,810	$	111,318

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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