
	December 31, 2021		Allocation of Income (Loss)		Funding reclassified to loan receivable		Funding		Entity Consolidated		Distribution		September 30, 2022
LaSalle Medical Associates – IPA Line of Business	$	3,034	$	3,885	$	(2,125)	$	—	$	—	$	—	$	4,794
Pacific Medical Imaging & Oncology Center, Inc.	1,719		(20)		—		—		—		—		1,699
531 W. College, LLC – related party	17,230		(420)		—		350		—		—		17,160
One MSO, LLC – related party	2,910		306		—		—		—		(400)		2,816
Tag-6 Medical Investment Group, LLC – related party	4,830		153		—		1,435		(6,418)		—		—
CAIPA MSO, LLC	11,992		493		—		—		—		—		12,485
	$	41,715	$	4,397	$	(2,125)	$	1,785	$	(6,418)	$	(400)	$	38,954

LMA was founded by Dr. Albert Arteaga in 1996 and operates as an IPA delivering high-quality care. In September 2021, APC-LSMA sold 21.25% of its interest in LMA back to Dr. Arteaga for $6.4 million, which resulted in APC-LSMA owning a 25% interest in LMA as of September 30, 2022. The investment is deemed Excluded Assets that are solely for the benefit of APC and its shareholders.

APC accounts for its investment in LMA under the equity method as APC has the ability to exercise significant influence, but not control over LMA’s operations. For the three months ended September 30, 2022 and 2021, APC recognized income from this investment of $1.3 million and a loss of $0.3 million, respectively, in the accompanying consolidated statements of operations. For the nine months ended September 30, 2022 and September 30, 2021, APC recognized income from this investment of $3.9 million and a loss of $4.7 million, respectively, in the accompanying consolidated statements of operations. The accompanying consolidated balance sheets include the related investment balances of $4.8 million and $3.0 million at September 30, 2022 and December 31, 2021, respectively.

LMA’s summarized balance sheets at September 30, 2022 and December 31, 2021, and summarized statements of operations for the nine months ended September 30, 2022 and 2021, with respect to its IPA line of business are as follows (in thousands):


	September 30, 2022		December 31, 2021
	(unaudited)		(unaudited)

Assets

Cash and cash equivalents	$	17,996	$	6,619
Restricted cash	699		696
Receivables, net	7,355		2,269
Loan receivable	2,250		2,250

Total assets	$	28,300	$	11,834

Liabilities and Stockholders’ Deficit
Current liabilities	$	33,468	$	32,405
Stockholders’ deficit	(5,168)		(20,571)

Total liabilities and stockholders’ deficit	$	28,300	$	11,834


	Nine Months Ended September 30,
	2022		2021
	(unaudited)		(unaudited)

Revenues	$	190,731	$	144,417
Expenses	180,696		155,786

Income (loss) from operations	10,035		(11,369)

Other loss	(48)		—


Net income (loss)	$	9,987	$	(11,369)

APC-LSMA and PMIOC entered into a share purchase agreement whereby APC-LSMA purchased a 40% ownership interest in PMIOC. Incorporated in California in 2004, PMIOC provides comprehensive diagnostic imaging services using state-of-the-art technology. PMIOC offers high-quality diagnostic services, such as MRI/MRA, PET/CT, CT, nuclear medicine, ultrasound, digital x-rays, bone densitometry, and digital mammography, at its facilities. The investment is deemed Excluded Assets that are solely for the benefit of APC and its shareholders.

APC accounts for its investment in PMIOC under the equity method of accounting as APC has the ability to exercise significant influence, but not control over PMIOC’s operations. For the three months ended September 30, 2022 and 2021, APC recognized loss from this investment of approximately $42,000 and income of $0.2 million, respectively, in the accompanying consolidated statements of operations. For the nine months ended September 30, 2022 and 2021, APC recognized loss of approximately $20,000 and income of $0.1 million, respectively, in the accompanying consolidated statements of operations. The accompanying consolidated balance sheets had investment balances of $1.7 million and $1.7 million at September 30, 2022 and December 31, 2021, respectively.

APC has a 50% ownership in 531 W. College LLC and accounts for its investment in 531 W. College, LLC under the equity method of accounting as APC has the ability to exercise significant influence, but not control over the operations of this joint venture. 531 W. College, LLC owns a former hospital campus in Los Angeles that is now leased to tenants. The investment is deemed Excluded Assets that are solely for the benefit of APC and its shareholders.

For the three months ended September 30, 2022 and 2021, APC recognized a loss from this investment of $0.1 million and $34,000, respectively, in the accompanying consolidated statements of operations. For the nine months ended September 30, 2022 and 2021, APC recorded a loss from this investment of $0.4 million and $0.1 million, respectively, in the accompanying consolidated statements of operations. The accompanying consolidated balance sheets include the related investment balances of $17.2 million and $17.2 million at September 30, 2022 and December 31, 2021, respectively.

APC has a 50% interest in One MSO. One MSO owns an office building in Monterey Park, California that is leased to tenants, including NMM. The investment is deemed Excluded Assets that are solely for the benefit of APC and its shareholders. For the three months ended September 30, 2022 and 2021, APC recognized income of $52,000 and $0.1 million, respectively, in the accompanying consolidated statements of operations. For the nine months ended September 30, 2022 and 2021, APC recognized income of $0.3 million and $0.4 million, respectively, in the accompanying consolidated statements of operations. The accompanying consolidated balance sheets include the related investment balances of $2.8 million and $2.9 million at September 30, 2022 and December 31, 2021, respectively.

APC had a 50% interest in Tag 6. Tag 6 leases its building to tenants and shares common ownership with certain board members of APC and as such is considered a related party. On August 31, 2022, using cash comprised solely of Excluded Assets, APC acquired the remaining 50% interest in Tag 6 for $4.9 million. As a result, Tag 6 is a 100% owned subsidiary of APC and is included in the consolidated financial statements.

For the three months ended September 30, 2022 and 2021, and prior to consolidation of Tag 6, APC recognized income of $42,000 and $45,000, respectively, in the accompanying consolidated statements of operations. For the nine months ended September 30, 2022 and 2021, and prior to consolidation of Tag 6, APC recognized income of $0.2 million and $0.2 million, respectively, in the accompanying consolidated statements of operations.

In August 2021, ApolloMed purchased 30% interests in CAIPA MSO, LLC for $11.7 million. CAIPA MSO is a New York-based management services organization affiliated with Chinese-American IPA d/b/a Coalition of Asian-American IPA (“CAIPA”), a leading independent practice association serving the greater New York City area.

ApolloMed accounts for its investment in CAIPA MSO under the equity method of accounting as ApolloMed has the ability to exercise significant influence, but not control over CAIPA MSO’s operations. For the three months ended September 30, 2022 and 2021, ApolloMed recognized income from investment of $0.2 million and $45,000, respectively, in the accompanying consolidated statements of operations. For the nine months ended September 30, 2022 and 2021, ApolloMed recognized income of $0.5 million and $45,000, respectively, in the accompanying consolidated statements of operations. The accompanying consolidated balance sheets include the related investment balances of $12.5 million and $12.0 million as of September 30, 2022 and December 31, 2021, respectively.

In May 2018, APC purchased 270,000 membership interests of MediPortal LLC, a New York limited liability company, for $0.4 million or $1.50 per membership interest, which represented an approximately 2.8% ownership interest. In connection with the initial purchase, APC received a five-year warrant to purchase an additional 270,000 membership interests. A five-year option to purchase an additional 380,000 membership interests and a five-year warrant to purchase 480,000 membership interests were contingent upon the portal completion date. However, APC did not exercise the option after completion of the portal. As APC does not have the ability to exercise significant influence, and lacks control over the investee, this investment is accounted for using a measurement alternative, which allows the investment to be measured at cost, adjusted for observable price changes and impairments, with changes recognized in net income.

In July 2019, NMM and AchievaMed, Inc., a California corporation (“AchievaMed”), entered into an agreement in which NMM would purchase 50% of the aggregate shares of capital stock of AchievaMed over a period of time not to exceed five years. As a result of this transaction NMM invested $0.5 million for a 10% interest. The related investment balance of $0.5 million is included in investments in privately held entities in the accompanying consolidated balance sheets as of September 30, 2022.