Related Party Transactions

3 Months Ended

Mar. 31, 2022

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

One of our subsidiaries had amounts due to the seller of the subsidiary, in a prior transaction unrelated to the merger with UpHealth Holdings, representing contingent consideration, accrued interest, and accrued preferred dividends totaling $4.2 million. The amount was paid in full during the three months ended June 30, 2021.

The subsidiary also has a management agreement with a related party (our chief financial officer, who is the former shareholder and chairman of the subsidiary). Management fee expenses incurred were none and approximately $0.1 million for the three months ended March 31, 2022 and 2021, respectively. There were no unpaid management fees at March 31, 2022 and December 31, 2021.

The consulting firm noted in Note 8, Debt, is a related party through an officer of the Company, who is also a significant shareholder and a member of our board of directors.

See Note 8, Debt, for related party long-term debt.

See Note 18, Commitments and Contingencies, for leases with related parties.

The Company makes guaranteed payments to related parties. Guaranteed payments aggregated $1.4 million and none for the three months ended March 31, 2022 and 2021, respectively. These amounts are presented in cost of goods and services in the

consolidated statement of operations. We had unpaid guaranteed payments of $0.1 million and $0.3 million as of March 31, 2022 and December 31, 2021, respectively, which is included in accrued liabilities on the consolidated balance sheet.