10-Q 1 uph-20220930.htm 10-Q uph-20220930
000177014112/312022Q3FALSE0.10.40.10.1P3MP2YP3MP2YP3MP2Y0.40.10.100017701412022-01-012022-09-300001770141us-gaap:CommonStockMember2022-01-012022-09-300001770141uph:RedeemableWarrantsMember2022-01-012022-09-3000017701412022-12-28xbrli:shares00017701412022-09-30iso4217:USD00017701412021-12-310001770141us-gaap:ServiceMember2022-07-012022-09-300001770141us-gaap:ServiceMember2021-07-012021-09-300001770141us-gaap:ServiceMember2022-01-012022-09-300001770141us-gaap:ServiceMember2021-01-012021-09-300001770141us-gaap:LicenseAndServiceMember2022-07-012022-09-300001770141us-gaap:LicenseAndServiceMember2021-07-012021-09-300001770141us-gaap:LicenseAndServiceMember2022-01-012022-09-300001770141us-gaap:LicenseAndServiceMember2021-01-012021-09-300001770141us-gaap:ProductMember2022-07-012022-09-300001770141us-gaap:ProductMember2021-07-012021-09-300001770141us-gaap:ProductMember2022-01-012022-09-300001770141us-gaap:ProductMember2021-01-012021-09-3000017701412022-07-012022-09-3000017701412021-07-012021-09-3000017701412021-01-012021-09-30iso4217:USDxbrli:shares0001770141us-gaap:CommonStockMember2021-12-310001770141us-gaap:AdditionalPaidInCapitalMember2021-12-310001770141us-gaap:TreasuryStockCommonMember2021-12-310001770141us-gaap:RetainedEarningsMember2021-12-310001770141us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001770141us-gaap:ParentMember2021-12-310001770141us-gaap:NoncontrollingInterestMember2021-12-310001770141us-gaap:CommonStockMember2022-01-012022-03-310001770141us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310001770141us-gaap:ParentMember2022-01-012022-03-3100017701412022-01-012022-03-310001770141us-gaap:RetainedEarningsMember2022-01-012022-03-310001770141us-gaap:NoncontrollingInterestMember2022-01-012022-03-310001770141us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310001770141us-gaap:CommonStockMember2022-03-310001770141us-gaap:AdditionalPaidInCapitalMember2022-03-310001770141us-gaap:TreasuryStockCommonMember2022-03-310001770141us-gaap:RetainedEarningsMember2022-03-310001770141us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310001770141us-gaap:ParentMember2022-03-310001770141us-gaap:NoncontrollingInterestMember2022-03-3100017701412022-03-310001770141us-gaap:CommonStockMember2022-04-012022-06-300001770141us-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-300001770141us-gaap:ParentMember2022-04-012022-06-3000017701412022-04-012022-06-300001770141us-gaap:TreasuryStockCommonMember2022-04-012022-06-300001770141us-gaap:NoncontrollingInterestMember2022-04-012022-06-300001770141us-gaap:RetainedEarningsMember2022-04-012022-06-300001770141us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-012022-06-300001770141us-gaap:CommonStockMember2022-06-300001770141us-gaap:AdditionalPaidInCapitalMember2022-06-300001770141us-gaap:TreasuryStockCommonMember2022-06-300001770141us-gaap:RetainedEarningsMember2022-06-300001770141us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-300001770141us-gaap:ParentMember2022-06-300001770141us-gaap:NoncontrollingInterestMember2022-06-3000017701412022-06-300001770141us-gaap:AdditionalPaidInCapitalMember2022-07-012022-09-300001770141us-gaap:ParentMember2022-07-012022-09-300001770141us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300001770141us-gaap:NoncontrollingInterestMember2022-07-012022-09-300001770141us-gaap:RetainedEarningsMember2022-07-012022-09-300001770141us-gaap:CommonStockMember2022-09-300001770141us-gaap:AdditionalPaidInCapitalMember2022-09-300001770141us-gaap:TreasuryStockCommonMember2022-09-300001770141us-gaap:RetainedEarningsMember2022-09-300001770141us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-09-300001770141us-gaap:ParentMember2022-09-300001770141us-gaap:NoncontrollingInterestMember2022-09-300001770141us-gaap:CommonStockMember2020-12-310001770141us-gaap:AdditionalPaidInCapitalMember2020-12-310001770141us-gaap:TreasuryStockCommonMember2020-12-310001770141us-gaap:RetainedEarningsMember2020-12-310001770141us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001770141us-gaap:ParentMember2020-12-310001770141us-gaap:NoncontrollingInterestMember2020-12-3100017701412020-12-310001770141us-gaap:CommonStockMember2021-01-012021-03-310001770141us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310001770141us-gaap:ParentMember2021-01-012021-03-310001770141us-gaap:NoncontrollingInterestMember2021-01-012021-03-3100017701412021-01-012021-03-310001770141us-gaap:RetainedEarningsMember2021-01-012021-03-310001770141us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310001770141us-gaap:CommonStockMember2021-03-310001770141us-gaap:AdditionalPaidInCapitalMember2021-03-310001770141us-gaap:TreasuryStockCommonMember2021-03-310001770141us-gaap:RetainedEarningsMember2021-03-310001770141us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310001770141us-gaap:ParentMember2021-03-310001770141us-gaap:NoncontrollingInterestMember2021-03-3100017701412021-03-310001770141us-gaap:CommonStockMember2021-04-012021-06-300001770141us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-300001770141us-gaap:ParentMember2021-04-012021-06-300001770141us-gaap:NoncontrollingInterestMember2021-04-012021-06-3000017701412021-04-012021-06-300001770141us-gaap:RetainedEarningsMember2021-04-012021-06-300001770141us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-300001770141us-gaap:CommonStockMember2021-06-300001770141us-gaap:AdditionalPaidInCapitalMember2021-06-300001770141us-gaap:TreasuryStockCommonMember2021-06-300001770141us-gaap:RetainedEarningsMember2021-06-300001770141us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300001770141us-gaap:ParentMember2021-06-300001770141us-gaap:NoncontrollingInterestMember2021-06-3000017701412021-06-300001770141us-gaap:AdditionalPaidInCapitalMember2021-07-012021-09-300001770141us-gaap:ParentMember2021-07-012021-09-300001770141us-gaap:CommonStockMember2021-07-012021-09-300001770141us-gaap:RetainedEarningsMember2021-07-012021-09-300001770141us-gaap:NoncontrollingInterestMember2021-07-012021-09-300001770141us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-300001770141us-gaap:CommonStockMember2021-09-300001770141us-gaap:AdditionalPaidInCapitalMember2021-09-300001770141us-gaap:TreasuryStockCommonMember2021-09-300001770141us-gaap:RetainedEarningsMember2021-09-300001770141us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-300001770141us-gaap:ParentMember2021-09-300001770141us-gaap:NoncontrollingInterestMember2021-09-3000017701412021-09-3000017701412021-06-09xbrli:pure0001770141us-gaap:SubsequentEventMember2022-12-082022-12-080001770141uph:TTCHealthcareIncMember2022-01-012022-09-300001770141uph:TTCHealthcareIncMember2021-01-012021-09-300001770141uph:GlocalHealthcareSystemsPrivateLimitedMember2022-01-012022-09-300001770141uph:GlocalHealthcareSystemsPrivateLimitedMember2021-01-012021-09-300001770141uph:InnovationsGroupIncMember2022-01-012022-09-300001770141uph:InnovationsGroupIncMember2021-01-012021-09-300001770141uph:CloudbreakHealthLLCMember2022-01-012022-09-300001770141uph:CloudbreakHealthLLCMember2021-01-012021-09-300001770141us-gaap:SubsequentEventMember2022-12-0500017701412022-07-012022-07-310001770141us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2022-07-0100017701412022-07-0100017701412022-07-012022-07-010001770141srt:MinimumMemberus-gaap:SubsequentEventMember2022-12-052022-12-050001770141srt:MaximumMemberus-gaap:SubsequentEventMember2022-12-052022-12-050001770141srt:MinimumMembersrt:ScenarioForecastMember2022-12-310001770141srt:MaximumMembersrt:ScenarioForecastMember2022-12-310001770141uph:TTCHealthcareIncMember2022-01-250001770141uph:TTCHealthcareIncMember2021-01-262022-01-250001770141uph:TTCHealthcareIncMember2021-01-250001770141us-gaap:MediumTermNotesMemberuph:TTCHealthcareIncMemberuph:PaycheckProtectionProgramLoansCARESActMemberuph:PaycheckProtectionProgramCARESActMember2021-02-012021-02-280001770141us-gaap:MediumTermNotesMemberuph:TTCHealthcareIncMemberuph:PaycheckProtectionProgramLoansCARESActMemberuph:PaycheckProtectionProgramCARESActMember2021-03-012021-03-310001770141uph:TTCHealthcareIncMember2021-01-252021-06-090001770141uph:TTCHealthcareIncMember2021-04-012021-06-300001770141uph:TTCHealthcareIncMember2021-10-012021-12-310001770141uph:TTCHealthcareIncMemberus-gaap:TradeNamesMember2021-01-252021-01-250001770141uph:GlocalHealthcareSystemsPrivateLimitedMember2022-03-260001770141uph:GlocalHealthcareSystemsPrivateLimitedMember2021-03-272022-03-260001770141uph:GlocalHealthcareSystemsPrivateLimitedMember2021-03-260001770141uph:GlocalHealthcareSystemsPrivateLimitedMember2021-04-012021-06-300001770141uph:GlocalHealthcareSystemsPrivateLimitedMember2021-07-012021-09-300001770141uph:GlocalHealthcareSystemsPrivateLimitedMember2021-10-012021-12-310001770141uph:GlocalHealthcareSystemsPrivateLimitedMember2022-01-012022-03-310001770141uph:GlocalHealthcareSystemsPrivateLimitedMemberus-gaap:IntellectualPropertyMember2021-03-262021-03-260001770141uph:InnovationsGroupIncMember2022-04-270001770141uph:InnovationsGroupIncMember2021-04-270001770141uph:InnovationsGroupIncMember2021-04-282022-04-270001770141us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMemberuph:InnovationsGroupIncMember2021-09-300001770141uph:InnovationsGroupIncMember2021-10-012021-12-310001770141uph:InnovationsGroupIncMemberus-gaap:TradeNamesMember2021-04-272021-04-270001770141uph:InnovationsGroupIncMemberus-gaap:IntellectualPropertyMember2021-04-272021-04-270001770141uph:InnovationsGroupIncMembersrt:MinimumMemberus-gaap:IntellectualPropertyMember2021-04-272021-04-270001770141uph:InnovationsGroupIncMembersrt:MaximumMemberus-gaap:IntellectualPropertyMember2021-04-272021-04-270001770141uph:InnovationsGroupIncMemberus-gaap:CustomerRelationshipsMember2021-04-272021-04-270001770141uph:InnovationsGroupIncMemberus-gaap:LeaseAgreementsMember2021-04-272021-04-270001770141uph:InnovationsGroupIncMember2021-04-272021-04-270001770141uph:CloudbreakHealthLLCMember2022-06-090001770141uph:CloudbreakHealthLLCMember2021-06-102022-06-090001770141uph:CloudbreakHealthLLCMember2021-06-090001770141uph:CloudbreakHealthLLCMember2021-07-012021-09-300001770141uph:CloudbreakHealthLLCMember2021-10-012021-12-310001770141uph:CloudbreakHealthLLCMember2022-04-012022-06-300001770141uph:CloudbreakHealthLLCMemberus-gaap:TradeNamesMember2021-06-092021-06-090001770141us-gaap:IntellectualPropertyMemberuph:CloudbreakHealthLLCMember2021-06-092021-06-090001770141uph:CloudbreakHealthLLCMemberus-gaap:CustomerRelationshipsMember2021-06-092021-06-090001770141uph:CloudbreakHealthLLCMember2021-06-092021-06-090001770141srt:AmericasMember2022-07-012022-09-300001770141srt:AmericasMember2021-07-012021-09-300001770141srt:AmericasMember2022-01-012022-09-300001770141srt:AmericasMember2021-01-012021-09-300001770141srt:EuropeMember2022-07-012022-09-300001770141srt:EuropeMember2021-07-012021-09-300001770141srt:EuropeMember2022-01-012022-09-300001770141srt:EuropeMember2021-01-012021-09-300001770141srt:AsiaMember2022-07-012022-09-300001770141srt:AsiaMember2021-07-012021-09-300001770141srt:AsiaMember2022-01-012022-09-300001770141srt:AsiaMember2021-01-012021-09-300001770141us-gaap:RevenueFromContractWithCustomerMemberuph:RevenueRecognitionTimingMemberus-gaap:TransferredOverTimeMember2022-07-012022-09-300001770141us-gaap:RevenueFromContractWithCustomerMemberuph:RevenueRecognitionTimingMemberus-gaap:TransferredOverTimeMember2021-07-012021-09-300001770141us-gaap:RevenueFromContractWithCustomerMemberuph:RevenueRecognitionTimingMemberus-gaap:TransferredOverTimeMember2022-01-012022-09-300001770141us-gaap:RevenueFromContractWithCustomerMemberuph:RevenueRecognitionTimingMemberus-gaap:TransferredOverTimeMember2021-01-012021-09-300001770141uph:SubscriptionsMember2022-09-300001770141uph:SubscriptionsMember2022-10-012022-09-3000017701412023-01-01uph:SubscriptionsMember2022-09-300001770141uph:ProgramManagementAndServicesMember2022-09-300001770141uph:ProgramManagementAndServicesMember2022-10-012022-09-3000017701412023-01-01uph:ProgramManagementAndServicesMember2022-09-3000017701412022-10-012022-09-3000017701412023-01-012022-09-300001770141us-gaap:LandMember2022-09-300001770141us-gaap:LandMember2021-12-310001770141us-gaap:BuildingMember2022-09-300001770141us-gaap:BuildingMember2021-12-310001770141us-gaap:LeaseholdImprovementsMember2022-09-300001770141us-gaap:LeaseholdImprovementsMember2021-12-310001770141uph:MedicalAndSurgicalEquipmentMember2022-09-300001770141uph:MedicalAndSurgicalEquipmentMember2021-12-310001770141uph:ElectricalAndOtherEquipmentMember2022-09-300001770141uph:ElectricalAndOtherEquipmentMember2021-12-310001770141uph:ComputerEquipmentFurnitureAndFixturesMember2022-09-300001770141uph:ComputerEquipmentFurnitureAndFixturesMember2021-12-310001770141us-gaap:VehiclesMember2022-09-300001770141us-gaap:VehiclesMember2021-12-310001770141us-gaap:SoftwareAndSoftwareDevelopmentCostsMember2022-09-300001770141us-gaap:SoftwareAndSoftwareDevelopmentCostsMember2021-12-310001770141us-gaap:ConstructionInProgressMember2022-09-300001770141us-gaap:ConstructionInProgressMember2021-12-310001770141us-gaap:TradeNamesMember2021-12-310001770141uph:TechnologyAndIntellectualPropertyMember2021-12-310001770141us-gaap:CustomerRelationshipsMember2021-12-310001770141us-gaap:LeaseAgreementsMember2021-12-310001770141us-gaap:TradeNamesMember2022-01-012022-09-300001770141uph:TechnologyAndIntellectualPropertyMember2022-01-012022-09-300001770141us-gaap:CustomerRelationshipsMember2022-01-012022-09-300001770141us-gaap:LeaseAgreementsMember2022-01-012022-09-300001770141us-gaap:TradeNamesMember2022-09-300001770141uph:TechnologyAndIntellectualPropertyMember2022-09-300001770141us-gaap:CustomerRelationshipsMember2022-09-300001770141us-gaap:LeaseAgreementsMember2022-09-300001770141srt:MinimumMemberus-gaap:TradeNamesMember2022-01-012022-09-300001770141srt:MaximumMemberus-gaap:TradeNamesMember2022-01-012022-09-300001770141srt:MinimumMemberuph:TechnologyAndIntellectualPropertyMember2022-01-012022-09-300001770141srt:MaximumMemberuph:TechnologyAndIntellectualPropertyMember2022-01-012022-09-30uph:segment00017701412021-12-312021-12-310001770141us-gaap:ConvertibleDebtMemberuph:TwentyTwentyFiveNotesMember2022-09-300001770141us-gaap:ConvertibleDebtMemberuph:TwentyTwentyFiveNotesMember2021-12-310001770141uph:UnsecuredConvertibleNotesDue2026Memberus-gaap:ConvertibleDebtMember2022-09-300001770141uph:UnsecuredConvertibleNotesDue2026Memberus-gaap:ConvertibleDebtMember2021-12-310001770141uph:OtherDebtFacilitiesMember2022-09-300001770141uph:OtherDebtFacilitiesMember2021-12-310001770141uph:ProviderReliefFundsCARESActMemberus-gaap:UnsecuredDebtMember2022-09-300001770141uph:ProviderReliefFundsCARESActMemberus-gaap:UnsecuredDebtMember2021-12-310001770141us-gaap:NotesPayableOtherPayablesMemberuph:SellerNotesMember2022-09-300001770141us-gaap:NotesPayableOtherPayablesMemberuph:SellerNotesMember2021-12-310001770141uph:UnsecuredConvertibleNotesDue2026Memberus-gaap:ConvertibleDebtMember2021-06-150001770141uph:UnsecuredConvertibleNotesDue2026Memberus-gaap:ConvertibleDebtMember2021-06-152021-06-150001770141uph:UnsecuredConvertibleNotesDue2026Memberus-gaap:ConvertibleDebtMember2022-08-120001770141uph:UnsecuredConvertibleNotesDue2026Memberus-gaap:ConvertibleDebtMember2022-07-012022-09-300001770141uph:UnsecuredConvertibleNotesDue2026Memberus-gaap:ConvertibleDebtMember2022-01-012022-09-300001770141uph:UnsecuredConvertibleNotesDue2026Memberus-gaap:ConvertibleDebtMember2021-01-012021-09-300001770141uph:UnsecuredConvertibleNotesDue2026Memberus-gaap:ConvertibleDebtMember2021-07-012021-09-300001770141uph:UnsecuredConvertibleNotesDue2026Memberus-gaap:ConvertibleDebtMember2022-08-122022-08-120001770141us-gaap:ConvertibleDebtMemberuph:TwentyTwentyFiveNotesMember2022-08-120001770141us-gaap:ConvertibleDebtMemberuph:TwentyTwentyFiveNotesMember2022-08-122022-08-1200017701412022-08-122022-08-120001770141us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMemberus-gaap:ConvertibleDebtMemberuph:TwentyTwentyFiveNotesMember2022-08-122022-08-120001770141us-gaap:SubsequentEventMemberus-gaap:ConvertibleDebtMemberuph:TwentyTwentyFiveNotesMember2022-12-152022-12-150001770141us-gaap:ConvertibleDebtMemberuph:TwentyTwentyFiveNotesMember2022-01-012022-09-300001770141us-gaap:ConvertibleDebtMemberuph:TwentyTwentyFiveNotesMember2022-07-012022-09-300001770141us-gaap:SubsequentEventMemberus-gaap:ConvertibleDebtMemberuph:TwentyTwentyFiveNotesMember2022-12-290001770141us-gaap:RevolvingCreditFacilityMemberuph:LoanAgreementMemberus-gaap:LineOfCreditMemberuph:TTCHealthcareIncMember2021-01-240001770141uph:LoanAgreementMemberuph:TTCHealthcareIncMemberuph:TermLoanMember2021-01-240001770141us-gaap:RevolvingCreditFacilityMemberuph:LoanAgreementMemberus-gaap:LineOfCreditMember2021-06-092021-06-090001770141uph:LoanAgreementMemberuph:TermLoanMember2021-06-092021-06-090001770141uph:LoanAgreementMember2021-06-090001770141uph:LoanAgreementMember2021-06-092021-06-090001770141us-gaap:SecuredDebtMemberuph:INRDenominatedTermLoansMemberuph:GlocalHealthcareSystemsPrivateLimitedMember2021-12-310001770141us-gaap:SecuredDebtMembercurrency:INRuph:INRDenominatedTermLoansMemberuph:GlocalHealthcareSystemsPrivateLimitedMember2021-12-31iso4217:INR0001770141us-gaap:SecuredDebtMembersrt:MinimumMemberuph:INRDenominatedTermLoansMemberuph:GlocalHealthcareSystemsPrivateLimitedMember2022-09-300001770141us-gaap:SecuredDebtMembersrt:MaximumMemberuph:INRDenominatedTermLoansMemberuph:GlocalHealthcareSystemsPrivateLimitedMember2022-09-300001770141us-gaap:SecuredDebtMemberuph:INRDenominatedTermLoansMemberuph:GlocalHealthcareSystemsPrivateLimitedMember2022-04-012022-06-300001770141us-gaap:SecuredDebtMemberuph:INRDenominatedTermLoansMemberuph:GlocalHealthcareSystemsPrivateLimitedMember2022-01-012022-06-300001770141us-gaap:SecuredDebtMemberuph:INRDenominatedTermLoansMemberuph:GlocalHealthcareSystemsPrivateLimitedMember2021-10-012021-12-310001770141uph:ConvertibleNoteDue2021Memberus-gaap:ConvertibleDebtMember2021-03-230001770141uph:ConvertibleNoteDue2021Memberus-gaap:ConvertibleDebtMember2021-03-232021-03-230001770141uph:ConvertibleNoteDue2021Memberus-gaap:ConvertibleDebtMember2021-06-092021-06-090001770141uph:ConvertibleNoteFivePercentDueJanuary2026Memberus-gaap:ConvertibleDebtMember2021-01-060001770141uph:ConvertibleNoteFivePercentDueJanuary2026Memberus-gaap:ConvertibleDebtMember2021-06-092021-06-090001770141uph:ConvertibleNoteFivePercentDueJanuary2026Memberus-gaap:ConvertibleDebtMember2021-06-090001770141uph:ThrasysIncMemberus-gaap:MediumTermNotesMemberuph:PaycheckProtectionProgramLoansCARESActMemberuph:PaycheckProtectionProgramCARESActMember2020-04-300001770141us-gaap:MediumTermNotesMemberuph:BehavioralHealthServicesLLCMemberuph:PaycheckProtectionProgramLoansCARESActMemberuph:PaycheckProtectionProgramCARESActMember2020-04-300001770141us-gaap:MediumTermNotesMemberuph:TTCHealthcareIncMemberuph:PaycheckProtectionProgramLoansCARESActMemberuph:PaycheckProtectionProgramCARESActMember2020-04-30uph:loan_agreement0001770141us-gaap:MediumTermNotesMemberuph:PaycheckProtectionProgramLoansCARESActMemberuph:PaycheckProtectionProgramCARESActMember2020-04-300001770141uph:ThrasysIncMemberus-gaap:MediumTermNotesMemberuph:PaycheckProtectionProgramLoansCARESActMemberuph:PaycheckProtectionProgramCARESActMember2020-12-310001770141us-gaap:MediumTermNotesMemberuph:TTCHealthcareIncMemberuph:PaycheckProtectionProgramLoansCARESActMemberuph:PaycheckProtectionProgramCARESActMember2020-12-31uph:loan0001770141us-gaap:MediumTermNotesMemberuph:TTCHealthcareIncMemberuph:PaycheckProtectionProgramLoansCARESActMemberuph:PaycheckProtectionProgramCARESActMember2020-01-012020-12-310001770141uph:BehavioralHealthServicesLLCMemberuph:ProviderReliefFundsCARESActMemberus-gaap:UnsecuredDebtMember2020-04-012020-07-310001770141uph:TTCHealthcareIncMemberuph:ProviderReliefFundsCARESActMemberus-gaap:UnsecuredDebtMember2021-01-012021-01-310001770141uph:BehavioralHealthServicesLLCMemberuph:ProviderReliefFundsCARESActMemberus-gaap:UnsecuredDebtMember2022-03-310001770141uph:TTCHealthcareIncMemberuph:ProviderReliefFundsCARESActMemberus-gaap:UnsecuredDebtMember2022-03-310001770141uph:ThrasysIncMembersrt:AffiliatedEntityMember2021-12-310001770141uph:ThrasysIncMembersrt:AffiliatedEntityMember2022-09-300001770141uph:ThrasysIncMembersrt:AffiliatedEntityMember2022-01-012022-09-30uph:quarterly_installment0001770141uph:ThrasysIncMembersrt:AffiliatedEntityMember2022-07-012022-09-300001770141uph:ThrasysIncMembersrt:AffiliatedEntityMember2021-07-012021-09-300001770141uph:ThrasysIncMembersrt:AffiliatedEntityMember2021-01-012021-09-300001770141us-gaap:NotesPayableOtherPayablesMemberuph:SellerNotesMember2021-06-092021-06-090001770141us-gaap:NotesPayableOtherPayablesMemberuph:SellerNotesMember2021-08-012021-08-310001770141us-gaap:NotesPayableOtherPayablesMemberuph:SellerNotesMember2022-08-012022-08-310001770141us-gaap:NotesPayableOtherPayablesMemberuph:SellerNotesMember2022-07-012022-09-300001770141us-gaap:NotesPayableOtherPayablesMemberuph:SellerNotesMember2021-07-012021-09-300001770141us-gaap:NotesPayableOtherPayablesMemberuph:SellerNotesMember2022-01-012022-09-300001770141us-gaap:NotesPayableOtherPayablesMemberuph:SellerNotesMember2021-01-012021-09-300001770141us-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2022-09-300001770141us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-09-300001770141us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-09-300001770141us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2022-09-300001770141us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-09-300001770141us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-09-300001770141us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-09-300001770141us-gaap:FairValueMeasurementsRecurringMember2022-09-300001770141us-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001770141us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001770141us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001770141us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001770141us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001770141us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001770141us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001770141us-gaap:FairValueMeasurementsRecurringMember2021-12-310001770141us-gaap:MoneyMarketFundsMember2022-09-300001770141us-gaap:MoneyMarketFundsMember2021-12-310001770141us-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputSharePriceMember2022-09-300001770141us-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputSharePriceMember2021-12-310001770141us-gaap:MeasurementInputPriceVolatilityMemberus-gaap:FairValueInputsLevel3Member2022-09-30uph:pure0001770141us-gaap:MeasurementInputPriceVolatilityMemberus-gaap:FairValueInputsLevel3Member2021-12-310001770141us-gaap:MeasurementInputRiskFreeInterestRateMemberus-gaap:FairValueInputsLevel3Member2022-09-300001770141us-gaap:MeasurementInputRiskFreeInterestRateMemberus-gaap:FairValueInputsLevel3Member2021-12-310001770141us-gaap:MeasurementInputExercisePriceMemberus-gaap:FairValueInputsLevel3Member2022-09-300001770141us-gaap:MeasurementInputExercisePriceMemberus-gaap:FairValueInputsLevel3Member2021-12-310001770141us-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputExpectedTermMember2022-09-30uph:Year0001770141us-gaap:FairValueInputsLevel3Memberus-gaap:MeasurementInputExpectedTermMember2021-12-310001770141srt:MinimumMemberuph:ConversionPeriodsMemberus-gaap:FairValueInputsLevel3Member2022-09-300001770141srt:MaximumMemberuph:ConversionPeriodsMemberus-gaap:FairValueInputsLevel3Member2022-09-300001770141srt:MinimumMemberuph:ConversionPeriodsMemberus-gaap:FairValueInputsLevel3Member2021-12-310001770141srt:MaximumMemberuph:ConversionPeriodsMemberus-gaap:FairValueInputsLevel3Member2021-12-310001770141srt:MinimumMemberuph:FutureSharePriceMemberus-gaap:FairValueInputsLevel3Member2022-09-300001770141srt:MaximumMemberuph:FutureSharePriceMemberus-gaap:FairValueInputsLevel3Member2022-09-300001770141srt:MinimumMemberuph:FutureSharePriceMemberus-gaap:FairValueInputsLevel3Member2021-12-310001770141srt:MaximumMemberuph:FutureSharePriceMemberus-gaap:FairValueInputsLevel3Member2021-12-310001770141uph:PrivatePlacementWarrantsMember2022-09-300001770141uph:PIPESubscriptionWarrantsMember2022-09-300001770141uph:PrivatePlacementWarrantsMember2021-12-310001770141uph:PIPESubscriptionWarrantsMember2021-12-310001770141uph:PIPESubscriptionWarrantsMember2022-07-012022-09-300001770141uph:PrivatePlacementWarrantsMember2022-07-012022-09-300001770141uph:PrivatePlacementWarrantsMember2022-01-012022-09-300001770141uph:PIPESubscriptionWarrantsMember2022-01-012022-09-300001770141us-gaap:RestrictedStockUnitsRSUMember2022-09-300001770141us-gaap:EmployeeStockOptionMember2022-09-300001770141uph:UnsecuredConvertibleNotesDue2025Member2022-09-300001770141uph:UnsecuredConvertibleNotesDue2026Member2022-09-300001770141uph:PublicWarrantsMember2022-09-300001770141uph:EquityIncentive2021PlanMember2022-09-300001770141uph:KeposAlphaFundLPMemberuph:ForwardSharePurchaseAgreementMember2021-12-310001770141uph:KeposAlphaFundLPMemberuph:ForwardSharePurchaseAgreementMember2022-04-012022-04-300001770141uph:Cloudbreak2015IncentivePlanMember2021-12-310001770141uph:Cloudbreak2015IncentivePlanMember2022-01-012022-09-300001770141uph:Cloudbreak2015IncentivePlanMember2022-09-300001770141uph:EquityIncentive2021PlanMemberus-gaap:RestrictedStockUnitsRSUMember2021-12-310001770141uph:EquityIncentive2021PlanMemberus-gaap:RestrictedStockUnitsRSUMember2022-01-012022-03-310001770141uph:EquityIncentive2021PlanMemberus-gaap:RestrictedStockUnitsRSUMember2022-03-310001770141uph:EquityIncentive2021PlanMemberus-gaap:RestrictedStockUnitsRSUMember2022-04-012022-06-300001770141uph:EquityIncentive2021PlanMemberus-gaap:RestrictedStockUnitsRSUMember2022-06-300001770141uph:EquityIncentive2021PlanMemberus-gaap:RestrictedStockUnitsRSUMember2022-07-012022-09-300001770141uph:EquityIncentive2021PlanMemberus-gaap:RestrictedStockUnitsRSUMember2022-09-300001770141uph:RelatedPartyLessorMembersrt:MinimumMember2022-01-012022-09-300001770141uph:RelatedPartyLessorMembersrt:MaximumMember2022-01-012022-09-300001770141srt:MinimumMemberuph:ThirdPartyLessorMember2022-01-012022-09-300001770141srt:MaximumMemberuph:ThirdPartyLessorMember2022-01-012022-09-300001770141uph:RelatedPartyLessorMember2022-07-012022-09-300001770141uph:RelatedPartyLessorMember2021-07-012021-09-300001770141uph:RelatedPartyLessorMember2022-01-012022-09-300001770141uph:RelatedPartyLessorMember2021-01-012021-09-300001770141uph:ThirdPartyLessorMember2022-07-012022-09-300001770141uph:ThirdPartyLessorMember2021-07-012021-09-300001770141uph:ThirdPartyLessorMember2022-01-012022-09-300001770141uph:ThirdPartyLessorMember2021-01-012021-09-300001770141uph:RelatedPartyLessorMember2022-09-300001770141uph:ThirdPartyLessorMember2022-09-300001770141uph:McKinseyUnitedStatesMember2022-03-012022-03-310001770141uph:McKinseyUnitedStatesMember2022-03-310001770141uph:McKinseyUnitedStatesMember2022-09-300001770141uph:AdvisoryServicesAgreementDisputeMember2022-01-012022-09-300001770141uph:AdvisoryServicesAgreementDisputeMember2022-09-300001770141uph:AdvisoryServicesAgreementDisputeMember2021-12-310001770141uph:ThrasysIncMember2008-01-012009-12-310001770141uph:ThrasysIncMemberus-gaap:InternalRevenueServiceIRSMember2022-01-012022-09-300001770141uph:ThrasysIncMemberus-gaap:CaliforniaFranchiseTaxBoardMember2022-01-012022-09-300001770141uph:ThrasysIncMember2022-09-300001770141us-gaap:StockCompensationPlanMember2022-07-012022-09-300001770141us-gaap:StockCompensationPlanMember2021-07-012021-09-300001770141us-gaap:StockCompensationPlanMember2022-01-012022-09-300001770141us-gaap:StockCompensationPlanMember2021-01-012021-09-300001770141us-gaap:RestrictedStockUnitsRSUMember2022-07-012022-09-300001770141us-gaap:RestrictedStockUnitsRSUMember2021-07-012021-09-300001770141us-gaap:RestrictedStockUnitsRSUMember2022-01-012022-09-300001770141us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-09-300001770141us-gaap:WarrantMember2022-07-012022-09-300001770141us-gaap:EmployeeStockOptionMember2022-07-012022-09-300001770141us-gaap:RestrictedStockUnitsRSUMember2022-07-012022-09-300001770141us-gaap:ConvertibleDebtSecuritiesMemberuph:TwentyTwentyFiveNotesMember2022-07-012022-09-300001770141us-gaap:ConvertibleDebtSecuritiesMemberuph:UnsecuredConvertibleNotesDue2026Member2022-07-012022-09-300001770141us-gaap:WarrantMember2021-07-012021-09-300001770141us-gaap:EmployeeStockOptionMember2021-07-012021-09-300001770141us-gaap:ConvertibleDebtSecuritiesMemberuph:UnsecuredConvertibleNotesDue2026Member2021-07-012021-09-300001770141us-gaap:WarrantMember2022-01-012022-09-300001770141us-gaap:EmployeeStockOptionMember2022-01-012022-09-300001770141us-gaap:RestrictedStockUnitsRSUMember2022-01-012022-09-300001770141us-gaap:ConvertibleDebtSecuritiesMemberuph:TwentyTwentyFiveNotesMember2022-01-012022-09-300001770141us-gaap:ConvertibleDebtSecuritiesMemberuph:UnsecuredConvertibleNotesDue2026Member2022-01-012022-09-300001770141us-gaap:ForwardContractsMember2022-01-012022-09-300001770141us-gaap:WarrantMember2021-01-012021-09-300001770141us-gaap:EmployeeStockOptionMember2021-01-012021-09-300001770141us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-09-300001770141us-gaap:ConvertibleDebtSecuritiesMemberuph:UnsecuredConvertibleNotesDue2026Member2021-01-012021-09-300001770141uph:UnsecuredConvertibleNotesDue2026Memberus-gaap:ForwardContractsMember2021-01-012021-09-300001770141srt:AffiliatedEntityMember2022-09-300001770141uph:FormerShareholderAndChairmanMemberuph:RelatedPartyManagementFeesMember2022-07-012022-09-300001770141uph:FormerShareholderAndChairmanMemberuph:RelatedPartyManagementFeesMember2022-01-012022-09-300001770141uph:FormerShareholderAndChairmanMemberuph:RelatedPartyManagementFeesMember2021-01-012021-09-300001770141uph:FormerShareholderAndChairmanMemberuph:RelatedPartyManagementFeesMember2021-07-012021-09-300001770141uph:FormerShareholderAndChairmanMemberuph:RelatedPartyManagementFeesMember2022-09-300001770141uph:FormerShareholderAndChairmanMemberuph:RelatedPartyManagementFeesMember2021-12-310001770141uph:GuaranteedPaymentsMembersrt:AffiliatedEntityMember2022-07-012022-09-300001770141uph:GuaranteedPaymentsMembersrt:AffiliatedEntityMember2021-07-012021-09-300001770141uph:GuaranteedPaymentsMembersrt:AffiliatedEntityMember2022-01-012022-09-300001770141uph:GuaranteedPaymentsMembersrt:AffiliatedEntityMember2021-01-012021-09-300001770141uph:GuaranteedPaymentsMembersrt:AffiliatedEntityMember2022-09-300001770141uph:GuaranteedPaymentsMembersrt:AffiliatedEntityMember2021-12-310001770141uph:IntegratedCareManagementSegmentMember2022-07-012022-09-300001770141uph:IntegratedCareManagementSegmentMember2021-07-012021-09-300001770141uph:IntegratedCareManagementSegmentMember2022-01-012022-09-300001770141uph:IntegratedCareManagementSegmentMember2021-01-012021-09-300001770141uph:VirtualCareInfrastructureSegmentMember2022-07-012022-09-300001770141uph:VirtualCareInfrastructureSegmentMember2021-07-012021-09-300001770141uph:VirtualCareInfrastructureSegmentMember2022-01-012022-09-300001770141uph:VirtualCareInfrastructureSegmentMember2021-01-012021-09-300001770141uph:ServicesSegmentMember2022-07-012022-09-300001770141uph:ServicesSegmentMember2021-07-012021-09-300001770141uph:ServicesSegmentMember2022-01-012022-09-300001770141uph:ServicesSegmentMember2021-01-012021-09-300001770141uph:IntegratedCareManagementSegmentMember2022-09-300001770141uph:IntegratedCareManagementSegmentMember2021-12-310001770141uph:VirtualCareInfrastructureSegmentMember2022-09-300001770141uph:VirtualCareInfrastructureSegmentMember2021-12-310001770141uph:ServicesSegmentMember2022-09-300001770141uph:ServicesSegmentMember2021-12-310001770141us-gaap:CorporateMember2022-09-300001770141us-gaap:CorporateMember2021-12-310001770141srt:AmericasMember2022-09-300001770141srt:AmericasMember2021-12-310001770141srt:AsiaMember2022-09-300001770141srt:AsiaMember2021-12-31


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

___________________________________
FORM 10-Q
___________________________________

(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2022
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number: 001-38924

UpHealth, Inc.
(Exact Name of Registrant as Specified in its Charter)

Delaware
83-3838045
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer Identification No.)
14000 S. Military Trail,
Suite 20333484
Delray Beach,Florida
(Address of principal executive offices)
(Zip Code)
(888) 424-3646
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.0001 per share
UPH.BC
New York Stock Exchange
Redeemable Warrants, exercisable for one share of Common Stock at an exercise price of $115.00 per share
UPH.WS.BC
New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No

As of December 28, 2022, the registrant had 15,054,431 shares of common stock, $0.0001 par value per share, outstanding.



TABLE OF CONTENTS
 
Page
 
 




Part 1 - Financial Information

Item 1. Financial Statements
3


UPHEALTH, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, unaudited)
 
September 30, 2022December 31, 2021
ASSETS
Current Assets:
Cash and cash equivalents$22,608 $58,192 
Restricted cash 18,609 
Accounts receivable, net22,626 22,761 
Inventories2,762 2,928 
Due from related parties21 40 
Prepaid expenses and other current assets4,077 4,217 
Total current assets52,094 106,747 
Property and equipment, net20,075 56,072 
Intangible assets, net56,474 115,313 
Goodwill195,028 284,268 
Equity investment21,200  
Deferred tax assets83  
Other assets454 6,907 
Total assets$345,408 $569,307 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable$16,393 $13,604 
Accrued expenses41,238 36,084 
Deferred revenues4,407 2,649 
Due to related party209 47 
Income taxes payable229 739 
Related-party debt, current403 657 
Debt, current10 22,093 
Forward share purchase liability 18,051 
Other liabilities, current3,758 2,780 
Total current liabilities66,647 96,704 
Related-party debt, noncurrent343 331 
Debt, noncurrent143,303 98,417 
Deferred tax liabilities 28,281 
Warrant liabilities, noncurrent61 252 
Derivative liability, noncurrent692 7,977 
Other liabilities, noncurrent2,880 3,502 
Total liabilities213,926 235,464 
Commitments and Contingencies (Note 11)
Stockholders’ Equity:
Common stock2 1 
Additional paid-in capital686,518 665,474 
Treasury stock, at cost(17,000) 
Accumulated deficit(538,854)(343,209)
Accumulated other comprehensive loss (3,802)
Total UpHealth, Inc., stockholders’ equity130,666 318,464 
Noncontrolling interests816 15,379 
Total stockholders’ equity131,482 333,843 
Total liabilities and stockholders’ equity$345,408 $569,307 
The accompanying notes are an integral part of these condensed consolidated financial statements.
4


UPHEALTH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts, unaudited)
 Three Months Ended September 30,Nine Months Ended September 30,
 2022202120222021
Revenues:
Services$27,600 $21,977 $81,382 $45,563 
Licenses and subscriptions2,019 10,956 10,612 23,759 
Products9,047 12,259 26,312 20,568 
Total revenues38,666 45,192 118,306 89,890 
Costs of revenues:
Services13,440 12,434 42,647 26,497 
License and subscriptions463 6,350 913 13,020 
Products6,264 8,461 18,550 14,104 
Total costs of revenues20,167 27,245 62,110 53,621 
Gross profit18,499 17,947 56,196 36,269 
Operating expenses:
Sales and marketing4,771 3,090 10,983 5,670 
Research and development2,231 1,916 5,600 5,759 
General and administrative13,922 11,452 42,213 22,481 
Depreciation and amortization3,336 3,626 13,272 7,496 
Stock-based compensation2,126 410 4,588 410 
Lease abandonment expenses 915 75 915 
Goodwill and intangible asset impairment106,096  112,270  
Acquisition, integration, and transformation costs6,049 1,227 15,182 36,566 
Total operating expenses138,531 22,636 204,183 79,297 
Loss from operations(120,032)(4,689)(147,987)(43,028)
Other income (expense):
Interest expense(6,708)(8,145)(20,306)(13,760)
Gain on consolidation of equity investment   640 
Loss on deconsolidation of subsidiary(37,708) (37,708) 
Gain on fair value of derivative liability223 49,885 6,893 49,885 
Gain on fair value of warrant liabilities 373 190 1,447 
Gain (loss) on extinguishment of debt(14,610) (14,610)151 
Other income, net, including interest income32 259 30 40 
Total other income (expense)(58,771)42,372 (65,511)38,403 
Income (loss) before income tax benefit (expense)(178,803)37,683 (213,498)(4,625)
Income tax benefit (expense)13,219 (6,695)17,744 357 
Net income (loss) before loss from equity investment(165,584)30,988 (195,754)(4,268)
Loss from equity investment   (561)
Net income (loss)(165,584)30,988 (195,754)(4,829)
Less: net income (loss) attributable to noncontrolling interests178 231 (109)147 
Net income (loss) attributable to UpHealth, Inc.$(165,762)$30,757 $(195,645)$(4,976)
Net income (loss) per share attributable to UpHealth, Inc.:
Basic$(11.17)$2.61 $(13.41)$(0.52)
Diluted$(11.17)$2.60 $(13.41)$(0.52)
Weighted average shares outstanding:
Basic14,842 11,763 14,588 9,519 
Diluted14,842 11,807 14,588 9,519 
The accompanying notes are an integral part of these condensed consolidated financial statements.
5


UPHEALTH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(In thousands, unaudited)
 
 Three Months Ended September 30,Nine Months Ended September 30,
 2022202120222021
Net income (loss)$(165,584)$30,988 $(195,754)$(4,829)
Foreign currency translation adjustments, net of tax 19 (3,857)(3,459)
Comprehensive income (loss)(165,584)31,007 (199,611)(8,288)
Comprehensive income (loss) attributable to noncontrolling interests178 231 (109)147 
Comprehensive income (loss) attributable to UpHealth, Inc.$(165,762)$30,776 $(199,502)$(8,435)
The accompanying notes are an integral part of these condensed consolidated financial statements.

6


UPHEALTH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(In thousands, unaudited)
Common StockTreasury Stock
SharesAmountAdditional
Paid-In
Capital
SharesAmountAccumulated
Deficit
Accumulated Other
Comprehensive
Loss
Total UpHealth, Inc.
Stockholders’
Equity
Noncontrolling
Interests
Total
Stockholders’
Equity
Balance at December 31, 2021(1)
14,428 $1 $665,474  $ $(343,209)$(3,802)$318,464 $15,379 $333,843 
Equity award activity, net of shares withheld for taxes(1)
37 — (67)— — — — (67)— (67)
Stock-based compensation— — 1,374 — — — — 1,374 — 1,374 
Net loss— — — — — (17,445)— (17,445)(260)(17,705)
Foreign currency translation adjustments— — — — — — (1,377)(1,377)(1,377)
Balance at March 31, 2022(1)
14,465 1 666,781   (360,654)(5,179)300,949 15,119 316,068 
Equity award activity, net of shares withheld for taxes(1)
390 (1,160)— — — — (1,159)— (1,159)
Stock-based compensation— — 1,088 — — — — 1,088 — 1,088 
Common stock repurchased in connection with forward share purchase agreement(1)
(170)— 17,000 170 (17,000)— — — —  
Purchase of noncontrolling interest— — — — — — — — (139)(139)
Distribution to noncontrolling interests— — — — — — — — (30)(30)
Net loss— — — — — (12,438)— (12,438)(27)(12,465)
Foreign currency translation adjustments— — — — — — (2,480)(2,480)— (2,480)
Balance at June 30, 2022(1)
14,685 2 683,709 170 (17,000)(373,092)(7,659)285,960 14,923 300,883 
Equity award activity, net of shares withheld for taxes(1)
206 — (30)— — — — (30)— (30)
Issuance of common stock in connection with 2025 Notes(1)
115 — 713 — — — — 713 — 713 
Stock-based compensation— — 2,126 — — — — 2,126 — 2,126 
Deconsolidation of subsidiary— — — — — — 7,659 7,659 (14,285)(6,626)
Net loss— — — — — (165,762)— (165,762)178 (165,584)
Balance at September 30, 2022(1)
15,006 $2 $686,518 170 $(17,000)$(538,854)$ $130,666 $816 $131,482 
(1)Amounts as of September 30, 2022 and before that date differ from those published in our prior condensed consolidated financial statements as they were retrospectively adjusted as a result of the Reverse Stock Split (as described below in Note 1, Organization and Business). Specifically, the number of common shares outstanding during periods before the Reverse Stock Split are divided by the exchange ratio of 10:1, such that each ten shares of common stock were combined and reconstituted into one share of common stock effective December 8, 2022.








7


UPHEALTH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(In thousands, unaudited)

Common StockTreasury Stock
SharesAmountAdditional
Paid-In
Capital
SharesAmountAccumulated
Deficit
Accumulated Other
Comprehensive
Loss
Total UpHealth, Inc.
Stockholders’
Equity
Noncontrolling
Interests
Total
Stockholders’
Equity
Balance at December 31, 2020(1)(2)
7,002 $1 $222,906  $ $(2,186)$ $220,721 $ $220,721 
Issuance of common stock for formation(1)(2)
875  87,409 — — — — 87,409 17,389 104,798 
Net loss— — — — — (2,949)— (2,949)(78)(3,027)
Foreign currency translation adjustments— — — — — — (1,159)(1,159)— (1,159)
Balance at March 31, 2021(1)(2)
7,877 1 310,315   (5,135)(1,159)304,022 17,311 321,333 
Issuance of common stock to consummate business combinations(1)(2)
2,616  243,587 — — — — 243,587 (2,239)241,348 
Merger recapitalization(1)(2)
947  54,605 — — — — 54,605 — 54,605 
PIPE common stock issuance(2)
300 — 27,079 — — — — 27,079 — 27,079 
Forward share repurchase agreement(2)
— — (17,000)— — — — (17,000)— (17,000)
Issuance of common stock for debt conversion(1)(2)
20 — 1,879 — — — — 1,879 — 1,879 
Net loss— — — — — (32,783)— (32,783)(6)(32,789)
Foreign currency translation adjustments— — — — — — (2,319)(2,319)— (2,319)
Balance at June 30, 2021(2)
11,760 1 620,465   (37,918)(3,478)579,070 15,066 594,136 
Purchase consideration adjustment— — 677 — — — — 677 — 677 
Exercise of stock option, net(2)
20 — 319 — — — — 319 — 319 
Stock-based compensation— — 410 — — — — 410 — 410 
Net income— — — — — 30,757 — 30,757 231 30,988 
Foreign currency translation adjustments— — — — — — 19 19 — 19 
Balance at September 30, 2021(2)