Nutex Health Inc 10-Q for FY2023 Q1

Nutex Health Inc. (NUTX)

10-Q 2023-05-15 For: 2023-03-31

Added on April 10, 2026

About this 10-Q

Nutex Health Inc filed this 10-Q on May 15, 2023, covering the quarter ended March 31, 2023 (FY2023 Q1).

Headline figures

Quarter ended March 31, 2023, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $56.33M; down 28.8% from $79.13M a year earlier
Net loss: $5.15M; compared with net income of $21.44M a year earlier
Diluted EPS: -$0.01; compared with $0.04 a year earlier

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Delaware	11-3363609
(State or other jurisdiction	(I.R.S. Employer
of incorporation or organization)	Identification No.)

6030 S. Rice Ave, Suite C,
Houston, Texas	77081
(Address of principal executive offices)	(Zip code)

(713) 660-0557
(Registrant’s telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.001 par value	NUTX	NASDAQ



Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐


Introductory Note
Note About Forward-Looking Statements

Part I — Financial Information
Item 1.	Financial Statements	4
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	31
Item 4.	Controls and Procedures	31

Part II — Other Information
Item 1.	Legal Proceedings	32
Item 1A.	Risk Factors	32
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	35
Item 3.	Defaults upon Senior Securities	35
Item 4.	Mine Safety Disclosures	35
Item 5.	Other Information	35
Item 6.	Exhibits	36


	March 31, 2023		December 31, 2022
Assets
Current assets:
Cash and cash equivalents	$	32,836,535	$	34,255,264
Accounts receivable		50,977,291		57,777,386
Accounts receivable - related parties		538,283		538,183
Inventories		3,485,445		3,533,285
Prepaid expenses and other current assets		829,553		1,869,806
Total current assets		88,667,107		97,973,924
Property and equipment, net		77,116,496		82,094,352
Operating right-of-use assets		17,454,733		20,466,632
Finance right-of-use assets		208,619,460		192,591,624
Intangible assets, net		20,804,971		21,191,390
Goodwill, net		17,010,637		17,010,637
Other assets		422,926		423,426

Total assets	$	430,096,330	$	431,751,985

Liabilities and Equity
Current liabilities:
Accounts payable	$	15,048,720	$	23,614,387
Accounts payable - related parties		3,925,297		3,915,661
Lines of credit		2,672,893		2,623,479
Current portion of long-term debt		10,456,134		12,546,097
Operating lease liabilities, current portion		1,495,409		1,703,014
Finance lease liabilities, current portion		4,118,170		4,219,518
Accrued expenses and other current liabilities		10,162,166		6,240,813
Total current liabilities		47,878,789		54,862,969
Long-term debt, net		25,108,364		23,051,152
Operating lease liabilities, net		16,634,948		19,438,497
Finance lease liabilities, net		221,394,523		203,619,756
Deferred tax liabilities		9,541,552		10,452,211
Total liabilities		320,558,176		311,424,585

Commitments and contingencies

Equity:
Common stock, $0.001 par value; 900,000,000 shares authorized; 651,926,125 and 650,223,840 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively		651,926		650,224
Additional paid-in capital		460,396,700		458,498,402
Accumulated deficit		(368,433,204)		(363,285,925)
Nutex Health Inc. equity		92,615,422		95,862,701
Noncontrolling interests		16,922,732		24,464,699
Total equity		109,538,154		120,327,400

Total liabilities and equity	$	430,096,330	$	431,751,985


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	Three Months Ended March 31,
	2023		2022
Revenue:
Hospital division	$	49,288,164	$	79,127,242
Population health management division		7,041,253		-
Total revenue		56,329,417		79,127,242

Operating costs and expenses:
Payroll and benefits		25,836,673		25,610,217
Contract services		9,189,331		4,918,632
Medical supplies		4,023,882		4,259,479
Depreciation and amortization		3,993,747		2,396,861
Other		8,438,061		6,126,557
Total operating costs and expenses		51,481,694		43,311,746

Gross profit		4,847,723		35,815,496

Corporate and other costs:
Facilities closing costs		217,266		-
Stock-based compensation expense		1,900,000		-
General and administrative expenses		7,175,544		6,576,523
Total corporate and other costs		9,292,810		6,576,523

Operating income (loss)		(4,445,087)		29,238,973

Interest expense, net		3,140,089		1,855,974
Other expense		247,455		2,380,545
Income (loss) before taxes		(7,832,631)		25,002,454

Income tax expense (benefit)		(910,659)		176,323

Net income (loss)		(6,921,972)		24,826,131

Less: net income (loss) attributable to noncontrolling interests		(1,774,693)		3,383,288

Net income (loss) attributable to Nutex Health Inc.	$	(5,147,279)	$	21,442,843

Earnings (loss) per common share
Basic	$	(0.01)	$	0.04
Diluted	$	(0.01)	$	0.04


	Common Stock			Additional Paid-in		Retained Earnings		Noncontrolling		Total
	Shares	Amount		Capital		(Accumulated Deficit)		Interests		Equity

Balance at January 1, 2022	592,791,712	$	592,792	$	11,742,891	$	102,315,623	$	76,929,704	$	191,581,010
Contributions	-		-		-		-		3,869,201		3,869,201
Distributions	-		-		-		(27,114,936)		(5,738,045)		(32,852,981)
Net income	-		-		-		21,442,843		3,383,288		24,826,131
Balance at March 31, 2022	592,791,712	$	592,792	$	11,742,891	$	96,643,530	$	78,444,148	$	187,423,361

Balance at January 1, 2023	650,223,840		650,224		458,498,402		(363,285,925)		24,464,699		120,327,400
Deconsolidation of Real Estate Entity	-		-		-		-		(4,258,133)		(4,258,133)
Common stock issued for exercise of warrants	702,285		702		(702)		-		-		-
Common stock issued to Apollo Medical Holdings, Inc.	1,000,000		1,000		1,899,000		-		-		1,900,000
Contributions	-		-		-		-		28,000		28,000
Distributions	-		-		-		-		(1,537,141)		(1,537,141)
Net loss	-		-		-		(5,147,279)		(1,774,693)		(6,921,972)
Balance at March 31, 2023	651,926,125	$	651,926	$	460,396,700	$	(368,433,204)	$	16,922,732	$	109,538,154


Fair value of Clinigence common shares at $6.40 per share (50,961,109 shares)	$	326,151,098
Fair value of Clinigence outstanding common stock options and warrants		110,543,915
Total consideration	$	436,695,013


Cash and cash equivalents	$	12,716,228
Accounts receivable, net		2,127,076
Prepaid expenses and other current assets		127,384
Property and equipment, net		14,793
Right of use asset, net		86,989
Intangible assets, net		21,668,000
Goodwill		414,006,378
Accounts payable and accrued expenses		(3,966,100)
Deferred revenue		(92,111)
Convertible notes payable, net		(3,771,858)
Term note payable		(674,526)
Lease liability		(91,238)
Deferred tax liability		(5,456,002)
Assets acquired	$	436,695,013


	Three Months Ended March 31,
	2022

Revenue	$	85,336,417
Net income attributable to Nutex Health Inc.		7,180,154
Basic earnings per share		0.01
Diluted earning per share		0.01


	Useful		March 31,		December 31,
	Life (years)		2023		2022

Buildings and improvements		39	$	9,086,826	$	8,521,996
Land		-		2,650,670		3,721,576
Leasehold improvements		10-39		28,855,241		28,855,239
Construction in progress		-		13,560,583		19,389,329
Medical equipment		10		29,220,485		28,744,664
Office furniture and equipment		7		2,860,680		2,860,680
Computer hardware and software		5		3,221,577		1,713,434
Vehicles		5		135,590		135,590
Signage		10		1,163,722		1,163,722
Total cost				90,755,374		95,106,230
Less: accumulated depreciation				(13,638,878)		(13,011,878)
Total property and equipment, net			$	77,116,496	$	82,094,352


	Gross		Accumulated		Net Carrying		Weighted Average
March 31, 2023	Carrying Amount		Amortization		Amount		Useful Life (in years)
Amortizing intangible assets:
Member relationships	$	16,899,000	$	1,126,599	$	15,772,401		15
Management contracts		2,021,000		126,313		1,894,687		16
Customer contracts		914,000		60,933		853,067		15
Trademarks		1,425,000		150,033		1,274,967		7-12
PHP technology		409,000		81,800		327,200		5
Indefinite life intangible - license		682,649		-		682,649		-
Total	$	22,350,649	$	1,545,678	$	20,804,971

December 31, 2022
Amortizing intangible assets:
Member relationships	$	16,899,000	$	844,950	$	16,054,050		15
Management contracts		2,021,000		94,734		1,926,266		16
Customer contracts		914,000		45,700		868,300		15
Trademarks		1,425,000		112,525		1,312,475		7-12
PHP technology		409,000		61,350		347,650		5
Indefinite life intangible - license		682,649		-		682,649		-
Total	$	22,350,649	$	1,159,259	$	21,191,390


	Maturity	Interest	March 31,		December 31,
	Dates	Rates	2023		2022

Term loans secured by all assets	04/2023 - 11/2030	3.25 - 6.00%	$	10,965,545	$	11,341,934
Term loans secured by property and equipment	01/2024 - 10/2029	4.19 - 6.90%		10,815,089		9,299,197
Line of credit secured by all assets	04/2023 - 11/2025	4.50 - 6.50%		2,672,894		2,623,479
Term loans of consolidated Real Estate Entities	08/2023 - 03/2037	3.59 - 4.80%		13,886,997		15,068,920
Total				38,340,525		38,333,530
Less: unamortized debt issuance costs				103,134		112,802
Less: short-term lines of credit				2,672,893		2,623,479
Less: current portion of long-term debt				10,456,134		12,546,097
Total long-term debt			$	25,108,364	$	23,051,152


	Three Months Ended March 31,
	2023		2022

Insurance		93%		96%
Self pay		4%		3%
Workers compensation		1%		1%
Medicare/Medicaid		2%		0%
Total		100%		100%


					Weighted Average
	Options		Weighted Average		Remaining Contractual
	Outstanding		Exercise Price		Life (Years)

Options outstanding at December 31, 2022		5,147,770	$	2.30		7.60
Options exercised		-		-
Options cancelled		-		-
Options outstanding at March 31, 2023		5,147,770	$	2.32		7.35


Expiration	Number		Number		Exercise
Date	Outstanding		Exercisable		Price

March 15, 2025		157,196		157,196	$	4.47
January 27, 2027		180,000		180,000		1.50
May 11, 2027		350,000		350,000		1.50
June 6, 2027		3,600		3,600		36.25
August 16, 2027		25,000		25,000		2.51
January 28, 2028		180,000		180,000		1.61
January 27, 2030		296,865		296,865		1.50
February 28, 2030		95,794		95,794		1.25
June 30, 2030		117,056		117,056		1.45
August 4, 2029		40,480		40,480		5.56
January 28, 2031		1,000,000		1,000,000		1.61
February 28, 2031		200,000		200,000		2.00
September 9, 2031		1,934,779		1,934,779		2.75
September 9, 2031		410,000		410,000		2.75
December 17, 2031		157,000		157,000		3.50
Total		5,147,770		5,147,770


					Weighted Average
	Warrants		Weighted Average		Remaining Contractual
	Outstanding		Exercise Price		Life (years)

Warrants outstanding at December 31, 2022		11,033,015	$	1.96		3.80
Warrants exercised		(806,453)		1.55
Warrants expired		(1,500)		1.55
Warrants outstanding at March 31, 2023		10,225,062	$	1.99		3.53


	March 31, 2023
	Real Estate		Physician		AHISP
	Entities		LLCs		IPA

Current assets	$	4,671,762	$	6,288,095	$	8,016,463
Property and equipment, net		10,975,277		3,668		-
Other long-term assets		19,634,442		-		16,254,462

Total assets	$	35,281,481	$	6,291,763	$	24,270,925

Current liabilities		1,038,381		5,400,568		24,240,245
Long-term liabilities		13,838,569		-		30,680

Total liabilities		14,876,950		5,400,568		24,270,925

Equity		20,404,531		891,195		-

Total liabilities and equity	$	35,281,481	$	6,291,763	$	24,270,925


Exhibit No.	Description
10.1*	Employment Agreement by and between the Company and Pamela Montgomery dated August 8, 2022.
31.1*	Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*	Certification of the Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (This exhibit shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Further, this exhibit shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.)
32.2*	Certification of the Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (This exhibit shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Further, this exhibit shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.)
101.INS*	XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH*	XBRL Taxonomy Extension Schema Document.
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF*	XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document.
104	Cover Page Interactive Data File - The cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.


	Nutex Health Inc.

	By:	/s/ Thomas T. Vo
		Thomas T. Vo
		Chief Executive Officer and Chairman of the Board (principal executive officer)


	By:	/s/ Jon C. Bates
		Jon C. Bates
		Chief Financial Officer (principal financial officer and principal accounting officer)

COMPANY:

NUTEX HEALTH INC.

By:		/s/ Thomas T. Vo

Printed Name:				Thomas T. Vo

Its:	CEO

Date:			August 8, 2022

EMPLOYEE:

By:		/s/ Pamela Montgomery

Printed Name:				Pamela Montgomery

Date:			August 8, 2022

Date:	May 15, 2023	By:	/s/ Thomas T. Vo
			Thomas T. Vo
			Chief Executive Officer and Chairman of the Board
			(principal executive officer)