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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Cash flows from operating activities:    
Net loss $ (117,868) $ (57,684)
Adjustments to reconcile net loss to net cash provided by operating activities:    
Depreciation and amortization 24,285 35,343
Amortization of deferred financing costs and debt discount 1,972 1,714
Deferred taxes (513) 337
Stock-based compensation 32,537 28,962
Acquisition-related contingent consideration paid   (67)
Impairment charges 46,355  
Loss on divestiture of business 2,879  
Other noncash items (9) 9
Changes in operating assets and liabilities, net of effect of divestiture:    
Accounts receivable, net 5,107 789
Inventories (291) (866)
Prepaid expenses and other current assets (1,375) (6,084)
Client claims receivables (4,936) (872)
Other assets (1,357) (2,604)
Accounts payable 5,074 1,587
Accrued expenses and other liabilities 13,534 2,138
Client claims payables 1,139 423
Other long-term liabilities 3,220 (108)
Net cash provided by operating activities 9,753 3,017
Cash flows from investing activities:    
Purchases of property and equipment (1,021) (1,611)
Software development costs (23,860) (22,649)
Proceeds from divestiture of business [1] 118,561  
Net cash provided by (used in) investing activities 93,680 (24,260)
Cash flows from financing activities:    
Proceeds from exercise of stock options 64 3,683
Payments for employee taxes for shares withheld (1,112)  
Payments for debt financing costs (350) (8)
Borrowings on line of credit 27,700 17,500
Repayments of line of credit (57,200)  
Payment of acquisition-related notes payable   (13,000)
Payments of acquisition-related contingent consideration   (99)
Repayments of long-term debt and finance leases   (4)
Net cash (used in) provided by financing activities (30,898) 8,072
Net increase (decrease) in cash and restricted cash 72,535 (13,171)
Cash and restricted cash, beginning of period 15,706 28,532
Cash and restricted cash, end of period [2] 88,241 15,361
Supplemental disclosure of cash flow information:    
Purchases of property and equipment and software development included in accounts payable and accrued expenses 1,082 370
Cash paid for interest 7,204 8,169
Cash paid for taxes 137 44
Interest costs capitalized to software development costs 257 $ 216
Employee taxes for shares withheld included in accrued expenses $ 1,028  
[1] The cash proceeds received from divestiture of business do not include $1,477 of additional consideration subsequently received by the Company in October 2022 due to customary post-closing adjustments or $3,000 of transaction costs incurred as of the sale date and expected to be paid in the fourth quarter of 2022. See Note 3 for additional information.
[2] The cash flows related to discontinued operations have not been segregated. Accordingly, the unaudited consolidated statements of cash flows include the results of continuing and discontinued operations. As a result of the divestiture, the changes in operating assets and liabilities for the nine months ended September 30, 2022 exclude changes related to the divested business. See Note 3 for discussion of discontinued operations and divestiture of business.