Supplemental Financial Statement Information

3 Months Ended

Mar. 31, 2024

Supplemental Financial Statement Information

As discussed in Note 1, Organization and Business, we deconsolidated UpHealth Holdings and its subsidiaries as of September 30, 2023; accordingly, the financial results of UpHealth Holdings and its subsidiaries for the three month ended March 31, 2023 are included in our unaudited condensed consolidated financial statements and the financial position of UpHealth Holdings as of March 31, 2024 and December 31, 2023 and the financial results of UpHealth Holdings and its subsidiaries for the three months ended March 31, 2024 are not included in our unaudited condensed consolidated financial statements.

Also, as discussed in Note 3 Discontinued Operations, on November 16, 2023 we agreed to sell 100% of the equity interest in Cloudbreak to Forest Buyer, LLC. The Sale closed on March 15, 2024. Accordingly, we have presented the financial position of Cloudbreak as of December 31, 2023 as held for sale and the results of operations of Cloudbreak for the period from January 1, 2024 to March 15, 2024 and for the three months ended March 31, 2023 as discontinued operations in the accompanying unaudited condensed consolidated financial statements.

Property and equipment, net consisted of the following:


(In thousands)	March 31, 2024		December 31, 2023
Computer equipment, furniture and fixtures	43		43
Capitalized software development costs	1,997		1,997
	2,040		2,040
Accumulated depreciation and amortization	(1,506)		(1,336)
Total property and equipment, net	$	534	$	704

As discussed in Note 3, Discontinued Operations, $8.8 million of property and equipment, net are included in assets held for sale, noncurrent in the unaudited condensed consolidated balance sheet as of December 31, 2023.

Depreciation expense was $0.2 million and $0.4 million for the three months ended March 31, 2024 and 2023, respectively.

Accrued expenses consisted of the following:


(In thousands)	March 31, 2024		December 31, 2023
Accrued professional fees	$	527	$	1,499
Accrued payroll and bonuses	6,309		5,691
Accrued interest on debt	2,495		846
Other accruals	182		196
Total accrued expenses	$	9,513	$	8,232

As discussed in Note 3, Discontinued Operations, $2.4 million of accrued expenses are included in liabilities held for sale, noncurrent in the unaudited condensed consolidated balance sheet as of December 31, 2023.

Other liabilities, noncurrent consisted of the following:


(In thousands)	March 31, 2024		December 31, 2023
Derivative liability, noncurrent	$	59	$	59
Warrant liabilities, noncurrent	17		17
Liability for uncertain tax positions, noncurrent	4,519		$	—
Total other liabilities, noncurrent	$	4,595	$	76