Revenue Recognition (Tables)

9 Months Ended

Sep. 30, 2018

Revenue from Contract with Customer [Abstract]

Schedule of Change in Accounting Estimate

The table below presents the impact of the adoption of ASC 606 on the Company’s condensed consolidated statements of income.

	Three months ended September 30, 2018
	Under ASC		Effect of ASC		As Reported
	605		606		Under ASC 606
Risk pool settlements and incentives	$	32,288,932	$	25,500,000	$	57,788,932
Total revenue		141,780,410		25,500,000		167,280,410
Provision for income taxes		7,450,124		7,135,818		14,585,942
Net income		20,261,258		18,364,182		38,625,440
Net income attributable to noncontrolling interest		13,358,562		16,160,481		29,519,043
Net income attributable to Apollo Medical Holdings, Inc.	$	6,902,696	$	2,203,701	$	9,106,397
Earnings per share - basic	$	0.21	$	0.07	$	0.28
Earnings per share - diluted	$	0.18	$	0.06	$	0.24

	Nine months ended September 30, 2018
	Under ASC		Effect of ASC		As Reported
	605		606		Under ASC 606
Risk pool settlements and incentives	$	60,741,885	$	28,900,000	$	89,641,885
Total revenue		385,551,683		28,900,000		414,451,683
Provision for income taxes		15,251,328		8,087,261		23,338,589
Net income		41,395,949		20,812,739		62,208,688
Net income attributable to noncontrolling interest		29,962,523		18,315,211		48,277,734
Net income attributable to Apollo Medical Holdings, Inc.	$	11,433,426	$	2,497,528	$	13,930,954
Earnings per share - basic	$	0.35	$	0.08	$	0.43
Earnings per share - diluted	$	0.30	$	0.07	$	0.37

The table below presents the impact of the adoption of ASC 606 on the Company’s consolidated balance sheet.

	September 30, 2018
	Under ASC		Effect of ASC		As Reported
	605		606		Under ASC 606
Assets
Trade accounts receivable, net	$	41,184,171	$	28,900,000	$	70,084,171
Total assets		522,998,869		28,900,000		551,898,869
Noncurrent liabilities
Deferred tax liability		26,564,409		8,087,261		34,651,670
Mezzanine equity
Noncontrolling interest in Alliled Pacific of California IPA		206,832,046		18,315,211		225,147,257
Shareholders’ equity
Retained earnings		14,602,537		2,497,528.00		17,100,065
Total liabilities, mezzanine equity and stockholders' equity	$	522,998,869	$	28,900,000	$	551,898,869

Schedule of Prospective Adoption of New Accounting Pronouncements

The cumulative effect of changes made to the Company’s condensed consolidated balance sheet as of January 1, 2018 for the adoption of Topic 606 were as follows:

	Balance at December 31, 2017		Adjustments due to Topic 606		Balance at January 1, 2018
Current Assets
Receivables	$	20,117,304	$	11,600,000	$	31,717,304
Liabilities, Mezzanine Equity and Stockholders’ Equity
Noncurrent Liabilities
Deferred tax liability	$	24,916,598	$	3,246,098	$	28,162,696
Mezzanine equity
Noncontrolling interest in Allied Pacific of California IPA	$	172,129,744	$	7,351,434	$	179,481,178
Stockholders’ Equity
Retained earnings	$	1,734,531	$	1,002,468	$	2,736,999

Disaggregation of Revenue

The following table presents disaggregated revenue generated by each payor type for the three and nine months ended September 30, 2018 and 2017:

Three Months Ended	September 30, 2018		September 30, 2017
Commercial	$	136,477,858	$	95,225,914
Medicare		30,534,724		1,840,804
Medicaid		183,618		-
Other third parties		84,210		67,563
Revenue	$	167,280,410	$	97,134,281

Nine Months Ended	September 30, 2018		September 30, 2017
Commercial	$	339,721,075	$	258,462,109
Medicare		73,995,902		5,163,909
Medicaid		543,762		-
Other third parties		190,944		156,025
Revenue	$	414,451,683	$	263,782,043