RADNET, INC. – 10-Q – Administration’s Dialogue and Evaluation of Monetary Situation and Outcomes of Operations – InsuranceNewsNet

It's best to learn the next dialogue and evaluation of our monetary situation
and outcomes of operations along with our unaudited condensed
consolidated monetary statements and notes thereto included in Half I, Merchandise 1
of this Quarterly Report on Type 10-Q and with our audited consolidated
monetary statements and notes thereto for the 12 months ended December 31, 2021
included in our Annual Report on Type 10-Okay for the fiscal 12 months ended December
31, 2021 filed with the U.S. Securities and Trade Fee (SEC) on March
1, 2022.

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Ahead-Trying Statements

This quarterly report on Type 10-Q comprises "forward-looking statements" inside
the which means of Part 27A of the Securities Act of 1933, as amended (the
"Securities Act") and Part 21E of the Securities Trade Act of 1934, as
amended. Ahead-looking statements replicate present views about future occasions
and are primarily based on our at present accessible monetary, financial and aggressive
knowledge and on present enterprise plans. Precise occasions or outcomes might differ
materially relying on dangers and uncertainties that will have an effect on our operations,
markets, providers, costs and different components.

In some circumstances, you'll be able to determine forward-looking statements by terminology such
as "might," "will," "ought to," "count on," "intend," "plan," "anticipate," "imagine,"
"estimate," "predict," "potential," "proceed," "assumption" or the unfavourable of
these phrases or different comparable terminology. Ahead-looking statements on this
quarterly report embrace, amongst others, statements we make concerning:

•anticipated developments in our revenues, working bills or capital expenditures,
and our monetary steering;

•anticipated future market acceptance for our services or products, and the
anticipated safety afforded by our aggressive strengths within the markets we
serve;

•potential timing and impression of adjustments in rules impacting our enterprise;

•the continuing impression on our enterprise, suppliers, payors, clients, referral
sources, companions, sufferers and staff of the COVID-19 pandemic;

•the anticipated impact of the measures we’re taking to reply to the COVID-19
pandemic

•our skill to efficiently purchase and combine new imaging operations;

•value financial savings, efficiencies and enhancements anticipated from our investments in
synthetic intelligence and machine studying services; and

•our future liquidity and our persevering with skill to service and stay in
compliance with relevant debt covenants or refinance our present indebtedness.

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Ahead-looking statements are neither historic information nor assurances of future
efficiency. As a result of forward-looking statements relate to the long run, they're
inherently topic to recognized and unknown dangers, uncertainties and different components
which can be tough to foretell and our of our management. Our precise outcomes, degree
of exercise, efficiency or achievements could also be materially totally different from any
future outcomes, ranges of exercise, efficiency or achievements expressed or
implied by these forwards-looking statements. Necessary components that might trigger
our precise outcomes to vary materially from these indicated or implied in our
forward-looking statements embrace the components included in "Danger Components," in
our annual report on Type 10-Okay for the fiscal 12 months ended December 31, 2021 or
supplemented by the knowledge in Half II- Merchandise 1A beneath. It's best to think about
the inherent limitations on, and dangers related to, forward-looking
statements and never unduly depend on the accuracy of predictions contained in such
forward-looking statements.

Any forward-looking assertion on this quarterly report is predicated on data
at present accessible to us and speaks solely as of the date of this report. We do
not undertake any duty to launch publicly any revisions to those
forward-looking statements to bear in mind occasions or circumstances that
happen after the date of this quarterly report or any unanticipated occasions which
might trigger precise outcomes to vary from these expressed or implied by the
forward-looking statements contained on this quarterly report, besides as
required by legislation.


Overview

We're a number one nationwide supplier of freestanding, fixed-site outpatient
diagnostic imaging providers in the USA primarily based on variety of places
and annual imaging income. At June 30, 2022, we operated, straight or
not directly by means of joint ventures with hospitals, 353 facilities situated in
Arizona, California, Delaware, Florida, Maryland, New Jersey, and New York. Our
operations comprise two segments for monetary reporting functions for this
reporting interval, Imaging Facilities and Synthetic Intelligence

Our Imaging Middle section offers physicians with imaging capabilities to
facilitate the prognosis and therapy of illnesses and problems. Companies
embrace magnetic resonance imaging (MRI), computed tomography (CT), positron
emission tomography (PET), nuclear drugs, mammography, ultrasound, diagnostic
radiology (X-ray), fluoroscopy and different associated procedures. The overwhelming majority
of our facilities supply multi-modality imaging providers, a technique that
diversifies income streams, reduces publicity to reimbursement adjustments and
offers sufferers and referring physicians one location to serve the wants of
a number of procedures. Included within the section is our eRad subsidiary, which
designs the underlying important scheduling, knowledge storage and retrieval techniques
needed for imaging heart operation.

Our Synthetic Intelligence ("AI") section that has been established by means of our
acquisitions of DeepHealth, Nulogix Aidence Holding B.V. and Quantib B.V.. Our
present AI focus is to develop options that make use of machine studying to help
radiologists and different clinicians in deciphering photos and enhancing affected person
care, initially within the fields of mind, breast, prostate, and pulmonary
diagnostics.

We derive considerably all of our income, straight or not directly, from charges
charged for the diagnostic imaging providers carried out at our facilities. The
following desk exhibits our facilities in operation and revenues for the six months
ended June 30, 2022 and June 30, 2021:

                                  Six Months Ended June 30,
                                       2022                  2021
Facilities in operation                                 353      353
Web revenues (hundreds of thousands)   $         696                     $ 649


Our income is derived from a various mixture of payors, together with personal, managed
care capitated and authorities payors. We imagine our payor variety mitigates
our publicity to doable unfavorable reimbursement developments inside anyone payor
class. As well as, our expertise with capitation preparations over the past
a number of years has supplied us with the experience to handle utilization and
pricing successfully, leading to a predictable stream of income.
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Our whole service payment revenues in the course of the three and 6 months ended June 30,
2022 and 2021 are introduced within the desk beneath. Our imaging evaluation is predicated on
an allocation of the estimated transaction worth with the affected person between the
main affected person classification of insurance coverage protection. Extra revenues are
earned from our administration providers supplied to joint ventures and our software program
and AI subsidiaries.

                                              Three Months Ended             Six Months Ended
                                                   June 30,                      June 30,
In Hundreds                                 2022           2021           2022           2021
Industrial insurance coverage                      $ 195,066      $ 187,354      $ 383,615      $ 369,566
Medicare                                     77,879         71,407        148,800        134,877
Medicaid                                      9,704          9,039         18,788         17,486
Employees' compensation/private damage        13,138         10,556         25,586         20,966
Different affected person income                         7,567          5,189         14,689          9,961
Administration payment income                        5,592          5,533         11,100         10,752
Software program income                              2,421          2,628          6,419          5,054
Different                                         3,577          3,788          8,623          6,409
Income below capitation preparations        37,874         38,424         76,365         74,166
Imaging Middle Section Income              352,818        333,918        693,985        649,237
AI Section Income                            1,557              -          2,156              -
Complete service income                     $ 354,375      $ 333,918      $ 696,141      $ 649,237


Latest Developments

By means of the second quarter ended June 30, 2022 our imaging enterprise continued to
broaden, with process volumes returning to ranges skilled earlier than the
COVID-19 pandemic, with identical heart process volumes rising 3.7% and
total process volumes rising 6.2% over the identical interval in 2021. We
opened a internet of six imaging facilities within the first half of 2022, by means of a
mixture of acquisition and inner growth. We continued to pursue our
technique of enlargement inside geographic areas, with a focus on including
new services in Maryland. Whereas imaging volumes returned to pre-pandemic
ranges, our operations have skilled results from the pandemic and associated
macroeconomic points. We're experiencing tighter labor markets, leading to
elevated salaries as we search to retain our expert workforce. Our acquisitions
of Aidence Holding B.V. and Quantib B.V. have expanded our AI initiatives to
embody imaging diagnostics options for essentially the most prevalent cancers. Efforts
in AI are largely within the product growth stage presently and we count on
that the section will proceed to expertise working losses for the
foreseeable future as we search to safe each regulatory approvals and market
acceptance for our merchandise.

Fairness Investments, Acquisitions and Tendencies, and Joint Enterprise Exercise

Now we have developed our medical imaging enterprise by means of a mix of natural
development, fairness investments, acquisitions and three way partnership formations. The
data beneath updates our exercise of such issues contained in our annual
report on Type 10-Okay for the 12 months ended December 31, 2021.

Fairness Investments

As of June 30, 2022, we now have three fairness investments for which a good worth is
not readily determinable and subsequently the entire quantities invested are acknowledged
at value as follows:

Medic Imaginative and prescient Imaging Options Ltd., primarily based in Israel, focuses on software program
packages that present compliant radiation dose structured reporting and enhanced
photos from diminished dose CT scans. Our funding of $1.2 million represents a
14.21% fairness curiosity within the firm. No observable worth adjustments or impairment
in our funding was recognized in the course of the three and 6 months ended June
30,2022.

Turner Imaging Methods, primarily based in Utah, develops and markets moveable X-ray
imaging techniques that present a person the power to amass X-ray photos wherever
and every time they're wanted. On February 1, 2018, we bought 2.1 million
most well-liked shares in Turner Imaging Methods for $2.0 million. On January 1, 2019
we funded a convertible promissory be aware in
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the quantity of $0.1 million that transformed into a further 80,000 shares
efficient December 21, 2019. No observable worth adjustments or impairment in our
funding was recognized in the course of the three and 6 months ended June 30,2022.

WhiteRabbit.ai Inc., primarily based in California, is at present growing a synthetic
intelligence suite which goals to enhance the velocity and accuracy of most cancers
detection in radiology and enhance affected person care. On November 5, 2019 we acquired
an fairness curiosity within the firm for $1.0 million and in addition loaned the corporate
$2.5 million in help of it operations. No observable worth adjustments,
impairment in our funding or impairment of the mortgage receivable was recognized
in the course of the three and 6 months ended June 30,2022.

Acquisitions


Imaging Middle

In the course of the first quarter of 2022, we accomplished the acquisition of sure belongings
of the next entities, which both interact straight within the apply of
radiology or related companies. The first cause for these acquisitions
was to strengthen our presence within the Maryland market. These acquisitions are
reported as a part of our Imaging Middle section. We made a good worth
dedication of the acquired belongings and assumed liabilities and the next
had been recorded (in 1000's):
       Entity                Date Acquired    Complete Consideration        Property & Tools       Proper of Use Belongings        Goodwill               Proper of Use Liabilities
           IFRC LLC*^             1/1/2022                      4,800                      2,103                        857           2,697                              (857)
           IFRC LLC*^             1/1/2022                      8,200                      2,910                      1,703           5,271                            (1,703)
                Complete                                          13,000                      5,013                      2,560           7,968                            (2,560)


*Honest Worth Dedication is Remaining
^ IFRC LLC acquisitions consisted of three subsidiaries of IFRC, one among which
was bought individually by a three way partnership with Calvert Medical Imaging
Facilities, LLC.

Synthetic Intelligence

Aidence Holding B.V.

On January 20, 2022, we accomplished our acquisition of all of the fairness pursuits of
Aidence Holding B.V. ("Aidence") a synthetic intelligence enterprise centered
on lung most cancers screening, in an mixture inventory and money buy. Aidence is
reported as a part of our synthetic intelligence section and was acquired to
improve our AI capabilities. The transaction was accounted for as an acquisition
of a enterprise and whole buy consideration was decided to be
roughly $45.2 million together with i) 1,117,872 shares issued at $26.80 per
share with a good worth of $30.0 million ii) money of $1.8 million and iii)
assuming liabilities of $11.9 million, $7.4 million in milestone contingent
consideration and money holdback of $4.5 million and iv) a settlement of a mortgage
from RadNet of $1.5 million. As well as we paid sure vendor closing prices
by means of the issuance of 23,362 shares at a good worth of $0.6 million. We
preliminarily recorded $1.0 million in present belongings, $0.2 million in property
plant and gear, $27.7 million in intangible belongings, $3.2 million in
liabilities and $19.0 million in goodwill.

Quantib B.V.

On January 20, 2022, we accomplished our acquisition of all of the fairness pursuits of
Quantib B.V. ("Quantib") a synthetic intelligence enterprise centered on
prostate most cancers screening, in a mix inventory and money buy. Quantib is
reported as a part of our synthetic intelligence section, and was acquired to
improve our AI capabilities. The transaction was accounted for as an acquisition
of a enterprise and whole buy consideration was decided to be
roughly $42.3 million together with i) 965,058 shares issued at $26.80 per
share with a good worth of $25.9 million ii) money of $11.8 million and iii)
113,303 shares with a good worth on the date of shut of $3.0 million and money
holdback of $1.6 million to be issued 18 months after acquisition topic to
adjustment for any indemnification claims. We preliminarily recorded $2.4
million million in present belongings, $0.1 million in property plant and gear,
$21.3 million in intangible belongings, $3.7 million in liabilities and $22.2
million in goodwill.

As we finalize our estimation of the honest worth of the belongings acquired and
liabilities assumed, extra changes could also be recorded in the course of the
measurement interval (a interval to not exceed 12 months). The preliminary accounting is
incomplete as of June 30, 2022 for the acquired belongings and liabilities as we're
at present within the technique of finishing the evaluation of valuation
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inputs and assumptions in addition to finishing the evaluation of the tax
attributes of the enterprise mixture. The finalization of the acquisition
accounting valuation evaluation might lead to a change within the valuation of the
deferred tax belongings and liabilities and intangible belongings, together with the
opening working capital accounts, which may have a fabric impression on our
outcomes of operations and monetary place.

Formation of majority owned subsidiary

Frederick County Radiology, LLC

On April 1, 2022 we fashioned Frederick County Radiology, LLC ("FCR"), a
partnership with Frederick Well being Hospital, Inc. ("Hospital"). The operation
provides multi-modality providers out of six places in Frederick, Maryland. We
contributed the operations of 4 facilities to the enterprise and Hospital
contributed $5.5 million in mounted belongings, $3.0 million in gear, $10.8
million in goodwill. On account of the the transaction, we retain a 65%
controlling financial curiosity in FCR and Hospital retains a preliminary $10.7
million or 35% noncontrolling financial curiosity in FCR. The preliminary accounting
is preliminary as of June 30, 2022 for the acquired belongings and liabilities as we
are at present within the technique of finishing the evaluation of valuation inputs
and assumptions in addition to finishing the evaluation of the tax attributes of
the enterprise mixture.

Superior Radiology at Capital Area, LLC

On June 15, 2022 we entered into Superior Radiology at Capital Area, LLC, a
partnership with Dimension Well being Company. ("Dimension"), and affiliate of
the College of Maryland. The operation will present multi-modality providers
out of two but to be decided places within the Largo, Maryland space. The
enterprise was initially capitalized with nominal quantities of $5.1 thousand for a
51% financial curiosity from us and $4.9 thousand from Dimension for a 49%
financial curiosity.

Joint Enterprise Exercise

Acquisition by fairness technique investee

In the course of the first quarter of 2022, our three way partnership with Calvert Medical Imaging
Middle, LLC, accomplished the acquisition of sure belongings to strengthen our
presence within the Maryland market. We made a good worth dedication of the
acquired belongings and assumed liabilities and the next had been recorded (in
1000’s):

        Entity                 Date Acquired    Complete Consideration        Property & Tools       Proper of Use Belongings        Goodwill               Proper of Use Liabilities
            IFRC LLC *^             1/1/2022                      3,922                      2,121                      1,295           1,801                            (1,295)


*Honest Worth Dedication is Remaining
^ IFRC LLC acquisitions consisted of three subsidiaries of IFRC, two of which
had been bought individually by wholly owned RadNet subsidiaries.

The next desk is a abstract of our funding in joint ventures in the course of the
six months ended June 30, 2022 (in 1000’s):

Steadiness as of December 31, 2021                    $ 42,229
Fairness in earnings in these joint ventures            5,266

Fairness contributions in present joint ventures 1,441
Steadiness as of June 30, 2022

                        $ 48,936


We charged administration service charges from the facilities underlying these joint
ventures of roughly $5.6 million and $5.5 million for the three months
ended June 30, 2022 and 2021 and $11.1 million and $10.8 million for the six
months ended June 30, 2022 and 2021, respectively.

On June 24, 2022, we made a further fairness contribution to our three way partnership
in Arizona of $1.4 million. Our fairness possession curiosity proportion within the
enterprise didn’t change.

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The next desk is a abstract of key steadiness sheet knowledge for these joint
ventures as of June 30, 2022 and December 31, 2021 and earnings assertion knowledge for
the six months ended June 30, 2022 and 2021 (in 1000’s):

                                                                   June 30,            December 31,
Steadiness Sheet Information:                                                  2022                  2021
Present belongings                                                  $    39,840          $      37,186
Noncurrent belongings                                                    88,754                 73,592
Present liabilities                                                 (12,322)               (12,919)
Noncurrent liabilities                                              (27,363)               (22,370)
Complete internet belongings                                                $    88,909 

$ 75,489

E book worth of RadNet three way partnership pursuits                    $    41,099 

$ 34,930
Value in extra of ebook worth of acquired three way partnership
pursuits

                                                             7,837                  7,299
Complete worth of RadNet three way partnership pursuits                   $    48,936 

$ 42,229

Revenue assertion knowledge for the six months ended June 30, 2022

 2021
Web income                                                 $ 69,757      $ 64,636
Web earnings                                                  $ 10,497      $ 10,258

Essential Accounting Insurance policies

The Securities and Trade Fee defines important accounting estimates as
these which can be each most necessary to the portrayal of an organization's monetary
situation and outcomes of operations and require administration's most tough,
subjective or complicated judgment, typically on account of the necessity to make estimates
in regards to the impact of issues which can be inherently unsure and will change in
subsequent intervals. In Notice 2 to our consolidated monetary statements on this
quarterly report and in our annual report on Type 10-Okay for the 12 months ended
December 31, 2021, we focus on our important accounting insurance policies, together with
these that don't require administration to make tough, subjective or complicated
judgments or estimates. Probably the most important areas involving administration's
judgments and estimates are described beneath.

Use of Estimates

The monetary statements had been ready in accordance with U.S. typically
accepted accounting rules (GAAP), which requires administration to make
estimates and assumptions that have an effect on the quantities reported within the monetary
statements and accompanying notes. These estimates and assumptions have an effect on
varied issues, together with our reported quantities of belongings and liabilities in our
consolidated steadiness sheets on the dates of the monetary statements; our
disclosure of contingent belongings and liabilities on the dates of the monetary
statements; and our reported quantities of revenues and bills in our
consolidated statements of operations in the course of the reporting intervals. These
estimates contain judgments with respect to quite a few components which can be tough
to foretell and are past administration's management. In consequence, precise quantities
may materially differ from these estimates.

Revenues

Our revenues typically relate to internet affected person charges obtained from varied payors
and sufferers themselves below contracts by which our efficiency obligations are
to offer diagnostic providers to the sufferers. Revenues are recorded in the course of the
interval our obligations to offer diagnostic providers are happy. Our
efficiency obligations for diagnostic providers are typically happy over a
interval of lower than sooner or later. The contractual relationships with sufferers, in
most circumstances, additionally contain a third-party payor (Medicare, Medicaid, managed care
well being plans and business insurance coverage corporations, together with plans provided by means of
the medical health insurance exchanges) and the transaction costs for the providers
supplied are dependent upon the phrases supplied by (Medicare and Medicaid) or
negotiated with (managed care well being plans and business insurance coverage corporations)
the third-party payors. The cost preparations with third-party payors for the
providers we offer to the associated sufferers sometimes specify funds at
quantities lower than our customary fees and customarily present for funds primarily based
upon predetermined charges per diagnostic providers or discounted fee-for-service
charges. Administration frequently evaluations the contractual estimation course of to
think about and incorporate updates to legal guidelines and rules, adjustments in enterprise
and financial situations, and the frequent adjustments in managed care contractual
phrases ensuing from contract re-negotiations and renewals.

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Because it pertains to the Group, this service payment income contains funds for each
the skilled medical interpretation income acknowledged by them in addition to
the cost for all different elements associated to our offering the imaging providers,
for which we earn administration charges. Because it pertains to others facilities, this service
payment income is earned by means of offering the usage of our diagnostic imaging
gear and the supply of technical providers in addition to offering
administration providers reminiscent of clerical and administrative personnel,
bookkeeping and accounting providers, billing and assortment, provision of
medical and workplace provides, secretarial, reception and transcription providers,
upkeep of medical data, and promoting, advertising and marketing and promotional
actions.
Our revenues are primarily based upon our administration's estimate of quantities we count on to be
entitled to obtain from sufferers and third-party payors. Estimates of
contractual allowances below Medicare, Medicaid, managed care and business
insurance coverage are primarily based upon historic assortment expertise of the funds
obtained from such payors in accordance with the underlying contractual
agreements. Revenues associated to uninsured sufferers and uninsured copayment and
deductible quantities for sufferers who've well being care protection might have worth
concessions utilized. We additionally document estimated implicit worth concessions (primarily based
totally on historic assortment expertise) associated to uninsured accounts to
document self-pay revenues on the estimated quantities we count on to gather.

Underneath capitation preparations with varied well being plans, we earn a per-enrollee
quantity every month for making accessible diagnostic imaging providers to all plan
enrollees below the capitation association. Income below capitation
preparations is acknowledged within the interval by which we're obligated to offer
providers to plan enrollees below contracts with varied well being plans. Our
estimates and assumptions associated to income recognition didn't change
materially for the quarter ended June 30, 2022.

Supplier Reduction Fund (COVID-19 Stimulus Funding)

The Supplier Reduction Fund provides authorities help to eligible suppliers
all through the healthcare system in help of sure bills or misplaced income
attributable to the coronavirus pandemic. Now we have recorded supplier reduction
funding in our condensed Consolidated Statements of Operations within the quantity of
$43.0 thousand for the three months ended June 30, 2021 and $6.3 million for the
six months ended June 30, 2021. No supplier reduction funding was obtained for the
three and 6 months ended June 30,2022. Typically, the division of Well being and
Human Companies ("HHS") doesn't intend to recoup funds so long as a supplier's
misplaced income and elevated bills exceed the quantity of supplier reduction funding
one has obtained. HHS reserves the precise to audit Reduction Fund recipients within the
future to make sure that this requirement is met and acquire any Reduction Fund
quantities that had been made in error or exceed misplaced income or elevated bills due
to the pandemic. Failure to adjust to the phrases and situations could also be grounds
for recoupment. In recognizing income related to supplier reduction funding
our administration is required to evaluate whether or not our operations have meet the
relevant necessities for the funding obtained. In the course of the quarter ended
June 30, 2022, we continued to guage our working leads to gentle of the
most up-to-date authorities steering and primarily based on our evaluation, the quantity of
income acknowledged is suitable.

Accounts Receivable

Considerably all of our accounts receivable are due below fee-for-service
contracts from third get together payors, reminiscent of insurance coverage corporations and
government-sponsored healthcare packages, or straight from sufferers. Companies
are typically supplied pursuant to one-year contracts with healthcare suppliers.
Receivables typically are collected inside trade norms for third-party
payors. We constantly monitor collections from our payors and preserve an
allowance for dangerous money owed primarily based upon particular payor assortment points that we now have
recognized and our historic expertise. Our estimates and assumptions for
allowances on our account receivable didn't change materially in the course of the
quarter ended June 30, 2022.

Enterprise Mixture

We consider all acquisitions below the framework Clarifying the Definition of a
Enterprise within the accounting steering. As soon as a purchase order has been decided to be
the acquisition of a enterprise, we're required to acknowledge the belongings acquired
and the liabilities assumed at their acquisition date honest values. Any portion
of the acquisition consideration transferred in extra of the web of the
acquisition date honest values of the belongings acquired and the liabilities assumed,
is allotted to goodwill. The allocation requires our administration to make
estimates of the worth of varied belongings acquired and liabilities assumed. Whereas
we use our greatest estimates and assumptions to precisely worth belongings acquired
and liabilities assumed on the acquisition date, our estimates are inherently
unsure and topic to refinement. In consequence, in the course of the measurement interval,
which can be as much as one 12 months from the acquisition date, we document changes to
the belongings acquired and liabilities assumed with the corresponding offset to
goodwill. Upon the conclusion of the measurement interval or ultimate dedication
of the values of belongings acquired or liabilities assumed, whichever comes first,
any subsequent changes are recorded to our consolidated statements of
operations.

Goodwill and Indefinite Lived Intangibles

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Goodwill at June 30, 2022 totaled $577.8 million. Indefinite Lived Intangible
Belongings at June 30, 2022 had been $12.7 million and are related to the worth of
sure commerce title intangibles. Our administration evaluations the honest worth of our
reporting models on an annual foundation to find out if an occasion has occurred which
recommend that the honest worth of a reporting unit could also be impaired. Once we
decide the carrying worth of a reporting unit exceeds its honest worth, an
impairment cost could be acknowledged and mustn't exceed the entire quantity of
goodwill allotted to that reporting unit. The evaluation of honest worth requires our
administration to make assessments of the enterprise and monetary prospects for a
specific reporting unit. We examined goodwill for impairment on October 1, 2021.
We additionally proceed at common intervals to contemplate the present and anticipated
future financial and market situations surrounding the COVID-19 pandemic and to
date haven't had a sign of goodwill impairment being extra probably than
not by means of June 30, 2022.

Latest Accounting Requirements

See Notice 3, Latest Accounting and Reporting Requirements to the monetary
statements included on this report for additional data.

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Outcomes of Operations

The next desk units forth, for the three and 6 months ended June 30, 2022
and 2021, the share that sure objects within the statements of operations
bears to whole service income, inclusive of income below capitation contracts.