Nutex Health Inc 10-Q for FY2023 Q3

Nutex Health Inc. (NUTX)

10-Q 2023-11-09 For: 2023-09-30

Added on April 10, 2026

About this 10-Q

Nutex Health Inc filed this 10-Q on November 9, 2023, covering the quarter ended September 30, 2023 (FY2023 Q3).

Headline figures

Quarter ended September 30, 2023, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $62.72M; up 120.9% from $28.4M a year earlier
Net loss: $5.54M; compared with a net loss of $412.19M a year earlier
Diluted EPS: -$0.01; compared with -$0.62 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	30
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	41
Item 4.	Controls and Procedures	41

Part II — Other Information
Item 1.	Legal Proceedings	42
Item 1A.	Risk Factors	43
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	44
Item 3.	Defaults upon Senior Securities	44
Item 4.	Mine Safety Disclosures	44
Item 5.	Other Information	44
Item 6.	Exhibits	45


	September 30, 2023		December 31, 2022
Assets
Current assets:
Cash and cash equivalents	$	26,826,733	$	34,255,264
Accounts receivable		53,209,834		57,777,386
Accounts receivable - related parties		1,487,591		538,183
Inventories		2,682,716		3,533,285
Prepaid expenses and other current assets		5,645,296		1,869,806
Total current assets		89,852,170		97,973,924
Property and equipment, net		85,496,612		82,094,352
Operating right-of-use assets		16,712,230		20,466,632
Finance right-of-use assets		247,593,480		192,591,624
Intangible assets, net		21,624,132		21,191,390
Goodwill, net		17,935,036		17,010,637
Other assets		419,882		423,426

Total assets	$	479,633,542	$	431,751,985

Liabilities and Equity
Current liabilities:
Accounts payable	$	17,599,047	$	23,614,387
Accounts payable - related parties		6,144,188		3,915,661
Lines of credit		3,371,676		2,623,479
Current portion of long-term debt		19,644,656		12,546,097
Operating lease liabilities, current portion		1,562,385		1,703,014
Finance lease liabilities, current portion		4,171,489		4,219,518
Accrued expenses and other current liabilities		14,773,273		6,240,813
Total current liabilities		67,266,714		54,862,969
Long-term debt, net		19,303,829		23,051,152
Operating lease liabilities, net		15,874,261		19,438,497
Finance lease liabilities, net		263,791,711		203,619,756
Deferred tax liabilities		8,492,294		10,452,211
Total liabilities		374,728,809		311,424,585

Commitments and contingencies

Equity:
Common stock, $0.001 par value; 950,000,000 shares authorized; 670,711,741 and 650,223,840 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively		670,712		650,224
Additional paid-in capital		466,711,720		458,498,402
Accumulated deficit		(377,454,642)		(363,285,925)
Nutex Health Inc. equity		89,927,790		95,862,701
Noncontrolling interests		14,976,943		24,464,699
Total equity		104,904,733		120,327,400

Total liabilities and equity	$	479,633,542	$	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 September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Revenue:
Hospital division	$	54,585,263	$	21,244,305	$	155,485,230	$	151,976,226
Population health management division		8,137,709		7,150,753		22,491,613		13,594,007
Total revenue		62,722,972		28,395,058		177,976,843		165,570,233

Operating costs and expenses:
Payroll and benefits		28,873,144		29,048,207		79,570,519		79,014,608
Contract services		9,035,650		8,557,373		27,972,854		26,536,452
Medical supplies		3,460,130		2,486,083		10,748,214		9,327,114
Depreciation and amortization		4,745,941		4,330,167		12,908,848		9,859,513
Other		9,541,894		7,686,132		25,215,549		22,092,033
Total operating costs and expenses		55,656,759		52,107,962		156,415,984		146,829,720

Gross profit (loss)		7,066,213		(23,712,904)		21,560,859		18,740,513

Corporate and other costs:
Facilities closing costs		-		-		217,266		-
Acquisition costs		43,464		-		43,464		3,885,666
Stock-based compensation expense		49,167		81,249		2,198,812		135,415
Impairment of goodwill		-		398,135,038		-		398,135,038
General and administrative expenses		7,794,808		6,751,548		24,730,168		17,404,637
Total corporate and other costs		7,887,439		404,967,835		27,189,710		419,560,756

Operating loss		(821,226)		(428,680,739)		(5,628,851)		(400,820,243)

Interest expense, net		4,098,179		3,402,606		12,081,316		9,628,189
Other expense (income)		(53,206)		(630,450)		70,721		346,873
Loss before taxes		(4,866,199)		(431,452,895)		(17,780,888)		(410,795,305)

Income tax expense (benefit)		(342,259)		(8,543,880)		(2,068,530)		11,285,729

Net loss		(4,523,940)		(422,909,015)		(15,712,358)		(422,081,034)

Less: net income (loss) attributable to noncontrolling interests		1,018,451		(10,722,749)		(1,543,641)		(12,052,765)

Net loss attributable to Nutex Health Inc.	$	(5,542,391)	$	(412,186,266)	$	(14,168,717)	$	(410,028,269)

Loss per common share:
Basic	$	(0.01)	$	(0.62)	$	(0.02)	$	(0.65)
Diluted	$	(0.01)	$	(0.62)	$	(0.02)	$	(0.65)


	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
Reverse acquisition with Clinigence	50,961,109		50,961		436,449,305		—		194,747		436,695,013
Notes payable converted to common stock	2,622,819		2,623		4,062,749		—		—		4,065,372
Common stock issued for exercise of warrants	2,147,252		2,147		4,116,994		—		—		4,119,141
Common stock issued for exercise of options	312,019		312		644,662		—		—		644,974
Stock-based compensation	83,547		83		54,083		—		—		54,166
Deconsolidation of Real Estate Entities	—		—		—		(6,466,946)		(32,336,946)		(38,803,892)
Contributions	—		—		—		—		861,916		861,916
Distributions	—		—		—		(7,341,202)		(7,637,993)		(14,979,195)
Net loss	—		—		—		(19,284,846)		(4,713,304)		(23,998,150)
Balance at June 30, 2022	648,918,458		648,918		457,070,684		63,550,536		34,812,568		556,082,706
Notes payable converted to common stock	851,611		852		1,319,148		—		—		1,320,000
Stock-based compensation	—		—		81,249		—		—		81,249
Contributions	—		—		—		—		94,260		94,260
Distributions	—		—		—		—		(2,141,198)		(2,141,198)
Net loss	—		—		—		(412,186,266)		(10,722,749)		(422,909,015)
Balance at September 30, 2022	649,770,069	$	649,770	$	458,471,081	$	(348,635,730)	$	22,042,881	$	132,528,002


	Nine months ended September 30, 2022
		As				As
		Reported		Revisions		Revised
Revised statements of operations
Net income (loss)	$	(432,412,571)	$	10,331,537	$	(422,081,034)
Less: net income (loss) attributable to noncontrolling interests		(12,052,765)		-		(12,052,765)
Net income (loss) attributable to Nutex Health Inc.	$	(420,359,806)	$	10,331,537	$	(410,028,269)


	Three months ended September 30, 2022
		As				As
		Reported		Revisions		Revised
Revised statements of operations
Net income (loss)	$	(433,240,552)	$	10,331,537	$	(422,909,015)
Less: net income (loss) attributable to noncontrolling interests		(10,722,749)		-		(10,722,749)
Net income (loss) attributable to Nutex Health Inc.	$	(422,517,803)	$	10,331,537	$	(412,186,266)

Revised statements of changes in equity
Balance at June 30, 2022
Common stock	$	649,770	$	-	$	649,770
Additional paid-in capital		468,802,618		10,331,537		458,471,081
Retained earnings		(358,967,267)		(10,331,537)		(348,635,730)
Noncontrolling interest		22,042,881		-		22,042,881
Total at September 30, 2022	$	132,528,002	$	-	$	132,528,002


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


	Nine Months Ended September 30,
	2022

Revenue	$	171,779,408
Net loss attributable to Nutex Health Inc.		(434,709,956)
Basic earnings per share		(0.69)
Diluted earnings per share		(0.69)


	Useful		September 30,		December 31,
	Life (years)		2023		2022

Buildings and improvements		39	$	8,968,439	$	8,521,996
Land		-		4,401,888		3,721,576
Leasehold improvements		10-39		28,855,241		28,855,239
Construction in progress		-		16,356,304		19,389,329
Medical equipment		10		34,163,757		28,744,664
Office furniture and equipment		7		3,333,445		2,860,680
Computer hardware and software		5		4,204,638		1,713,434
Vehicles		5		135,590		135,590
Signage		10		1,429,628		1,163,722
Total cost				101,848,930		95,106,230
Less: accumulated depreciation				(16,352,318)		(13,011,878)
Total property and equipment, net			$	85,496,612	$	82,094,352


	Gross		Accumulated		Net Carrying		Weighted Average
September 30, 2023	Carrying Amount		Amortization		Amount		Useful Life (in years)
Amortizing intangible assets:
Member relationships	$	18,491,000	$	1,689,899	$	16,801,101		15
Management contracts		2,021,000		189,469		1,831,531		16
Customer contracts		914,000		91,400		822,600		15
Trademarks		1,425,000		225,049		1,199,951		7-12
PHP technology		409,000		122,700		286,300		5
Indefinite life intangible - license		682,649		-		682,649		-
Total	$	23,942,649	$	2,318,517	$	21,624,132

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	September 30,		December 31,
	Dates	Rates	2023		2022

Term loans secured by all assets	01/2024 - 12/2028	4.15 - 7.71%	$	8,555,677	$	11,341,934
Term loans secured by property and equipment	01/2024 - 10/2028	3.59 - 9.75%		11,216,145		9,299,197
Line of credit secured by all assets	01/2024 - 11/2025	4.00 - 8.00%		3,371,676		2,623,479
Term loans of consolidated Real Estate Entities	10/2023 - 03/2037	2.84 - 5.75%		13,371,325		15,068,920
Unsecured convertible term notes	10/2025	8.00 - 10.00%		990,000		—
Pre-paid advance (convertible debt)	03/2024	0.00%		5,661,124		—
Total				43,165,947		38,333,530
Less: unamortized issuance costs and discount				845,786		112,802
Less: short-term lines of credit				3,371,676		2,623,479
Less: current portion of long-term debt				19,644,656		12,546,097
Total long-term debt			$	19,303,829	$	23,051,152


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

Options outstanding at April 1, 2022 merger date		6,500,010	$	2.30		6.62
Options exercised		(312,019)		2.08
Options cancelled		—		—
Options outstanding at September 30, 2022		6,187,991	$	2.30		6.17

Options outstanding at December 31, 2022		5,147,770	$	2.30		7.60
Options exercised		—		—
Options cancelled		—		—
Options outstanding at September 30, 2023		5,147,770	$	2.30		6.85


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

	Shares (in thousands)		Weighted Average Grant-Date Fair Value Per Share

Non-vested awards, January 1, 2023		—		—
Granted		604		$1.01
Vested		(215)		1.01
Non-vested awards, September 30, 2023		389		$1.01


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

Warrants outstanding at April 1, 2022 merger date		12,401,240	$	2.04		4.65
Warrants exercised		(2,187,225)		2.27
Warrants outstanding at September 30, 2022		10,214,015	$	2.04		4.60

Warrants outstanding at December 31, 2022		11,033,015	$	1.96		3.80
Warrants issued		1,237,500		0.40
Warrants exercised		(1,456,453)		1.55
Warrants expired		(3,000)		25.00
Warrants outstanding at September 30, 2023		10,811,062	$	1.83		3.35


	September 30, 2023
	Real Estate		Physician		AHISP
	Entities		LLCs		IPA

Current assets	$	438,235	$	6,111,810	$	10,326,963
Property and equipment, net		-		3,668		91,546
Other long-term assets		46,730,762		-		29,653

Total assets	$	47,168,997	$	6,115,478	$	10,448,162

Current liabilities		876,464		5,854,614		10,448,162
Long-term liabilities		13,324,617		-		-

Total liabilities		14,201,081		5,854,614		10,448,162

Equity		32,967,916		260,864		-

Total liabilities and equity	$	47,168,997	$	6,115,478	$	10,448,162


Exhibit No.	Description
10.01*	Employment Agreement, dated as of August 28, 2023, between the Company and Joshua DeTillio.
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:	8/28/2023


EMPLOYEE:

JOSHUA DETILLIO

By:	/s/ Joshua DeTillio

Printed Name:	Joshua DeTillio

Date:	8/28/2023


“Covered Entity”			“Business Associate”

Nutex Health, Inc.			Joshua DeTillio


By:			By:

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