SEGMENT INFORMATION (Tables)

6 Months Ended

Jun. 30, 2022

Schedule of Segment Reporting Information, by Segment

Presented in the tables below is revenue and Segment Adjusted EBITDA by reportable segment:


	For the Three Months Ended June 30, 2022				For the Six Months Ended June 30, 2022
(in thousands)	Technology Enabled Solutions		Advisory Services		Technology Enabled Solutions		Advisory Services
Revenue	$	75,619	$	14,163	$	158,785	$	27,705
Segment Adjusted EBITDA	$	8,668	$	5,897	$	21,038	$	11,221


	For the Three Months Ended June 30, 2021				For the Six Months Ended June 30, 2021
(in thousands)	Technology Enabled Solutions		Advisory Services		Technology Enabled Solutions		Advisory Services
Revenue	$	61,366	$	13,882	$	130,949	$	26,931
Segment Adjusted EBITDA	$	15,877	$	5,264	$	32,253	$	8,602

The following table presents a reconciliation of Segment Adjusted EBITDA to the condensed consolidated U.S. GAAP net income (loss) from operations:


(in thousands)	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2022		2021		2022		2021
Technology Enabled Solutions Segment Adjusted EBITDA	$	8,668	$	15,877	$	21,038	$	32,253
Advisory Services Segment Adjusted EBITDA	5,897		5,264		11,221		8,602
Total	$	14,565	$	21,141	$	32,259	$	40,855
Unallocated(1)	$	(2,387)	$	(2,873)	$	(4,761)	$	(4,991)
Adjustments to reconcile to U.S. GAAP net income (loss)
Depreciation and amortization	(9,012)		(7,823)		(17,264)		(15,194)
Interest, net	(4,188)		(6,394)		(7,908)		(11,861)
Income tax provision	2,683		5,166		3,359		6,173
Cost of COVID-19(2)	—		(1,127)		(274)		(2,311)
Sales and use tax	—		(2,570)		—		(3,968)
Non-cash stock compensation expense	(2,866)		(1,083)		(4,130)		(2,073)
Transaction related costs and restructuring charges(3)	(5,754)		(1,556)		(6,395)		(2,642)
Acquisition bonus expense	(88)		(96)		(147)		(289)
Inventory step-up(4)	(2,838)		—		(4,731)		—
Loss on extinguishment of debt	—		(5,015)		—		(5,015)
Director and officer prior act liability insurance policy (5)	—		(7,861)		—		(7,861)
Other(6)	(5)		(3,052)		(1,052)		(4,900)
Net income (loss)	$	(9,890)	$	(13,143)	$	(11,044)	$	(14,077)

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(1)Represents certain corporate costs associated with the executive compensation, legal, accounting, finance and other costs not specifically attributable to the segments.

(2)Expenses incurred due to the COVID-19 pandemic are primarily related to higher pricing from vendors due to supply chain disruptions and product shortages and higher employee costs due to hazard pay for our employees. While we had previously expected that these costs would not be an adjustment in the calculation of Segment Adjusted EBITDA after 2021, the COVID-19 pandemic has not subsided and during 2022, to a lesser extent, we have continued to incur higher product costs due to higher pricing from vendors for certain items (e.g., masks and other similar high demand products). We now expect that these expenses will not be an adjustment in the calculation of Segment Adjusted EBITDA after 2022.

(3)Transaction related costs and restructuring charges primarily consist of public company readiness costs, expenses for corporate development such as mergers and acquisitions activity, due diligence costs, going private costs and restructuring charges such as severance costs.

(4)Incremental cost of products associated with the step-up of inventory recognized in purchase accounting for the HealthSmart acquisition.

(5)In connection with the IPO, we made a $7.9 million one-time payment on a 3-year director and officer prior act liability insurance policy. We deemed this policy to be a retroactive insurance policy and in accordance with ASC 720-20-25, “Retrospective Contracts”, we expensed the premium of $7.9 million in June 2021.

(6)These adjustments include individual adjustments related to fees associated with obtaining the incremental term loans, management fees, management service agreement termination fee, and board of director related fees.