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SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

Schedule of Service Fee Revenue

Our total service revenues during the three and six months ended June 30, 2024 and 2023 are presented in the table below based on an allocation of the estimated transaction price with the patient between the primary patient classification of insurance coverage (in thousands):

			Three Months Ended June 30,												Six Months Ended June 30,
			2024						2023						2024						2023
Commercial insurance			$	256,517					$	220,618					$	497,145					$	433,673
Medicare			101,719						87,787						195,186						172,757
Medicaid			11,001						9,798						21,906						19,763
Workers' compensation/personal injury			10,997						12,580						22,837						25,017
Other patient revenue			12,432						10,196						23,897						19,751
Management fee revenue			6,106						4,033						12,014						8,281
Heart and lung			3,936						2,123						7,857						3,936
Other			4,209						5,180						8,604						10,480
Revenue under capitation arrangements			36,969						39,797						71,487						77,941
Imaging Center Segment Revenue			443,886						392,112						860,933			860933000			771,599
Digital Health Segment Revenue			15,828						11,603						30,488						22,680
Total service revenue			$	459,714					$	403,715					$	891,421					$	794,279

Schedule of Goodwill

Activity in goodwill for the six months ended June 30, 2024 is provided below (in thousands):

			Imaging Center						Digital Health						Total
Balance as of December 31, 2023			606,557						$	72,906					$	679,463
Goodwill from acquisitions			31,549						—						31,549
Valuation adjustment			(358)						—						(358)
Currency translation			(184)						(1,490)						(1,674)
Segment reorganization			(12,300)						12,300						—
Balance as of June 30, 2024			$	625,264					$	83,716					$	708,980

Schedule of Annual Amortization Expense

The components of intangible assets, both finite and indefinite, along with annual amortization expense that will be recorded over the next five years at June 30, 2024 and December 31, 2023 are as follows (in thousands):

As of June 30, 2024:

			2024*						2025						2026						2027						2028						Thereafter						Total						Weighted average amortization period remaining in years
Management service contracts			$	1,144					$	2,287					$	2,287					$	2,287					$	2,287					$	6,671					$	16,963					7.4
Covenant not to compete and other contracts			517						865						578						283						193						48						2,484						3.2
Customer lists			612						1,093						971						795						758						10,481						14,710						17.5
Patent and trademarks			150						301						301						301						301						180						1,534						5.5
Developed technology			3,738						7,476						7,436						6,902						6,902						6,620						39,074						6.0
Trade names amortized			39						77						77						77						63						27						360						4.8
Trade names indefinite life			—						—						—						—						—						7,100						7,100						—
IPR&D			—						—						—						—						—						1,824						1,824						—
Total annual amortization			$	6,200					$	12,099					$	11,650					$	10,645					$	10,504					$	32,951					$	84,049

*Excluding the six months ended June 30, 2024

As of December 31, 2023:

			2024						2025						2026						2027						2028						Thereafter						Total						Weighted average amortization period remaining in years
Management service contracts			$	2,287					$	2,287					$	2,287					$	2,287					$	2,287					$	6,671					$	18,106					7.9
Covenant not to compete and other contracts			946						714						427						132						45						6						2,270						3.4
Customer lists			1,234						1,104						981						797						764						10,564						15,444						17.7
Patent and trademarks			316						316						316						315						300						164						1,727						5.8
Developed technology			7,785						7,785						7,745						7,210						7,046						6,117						43,688						5.7
Trade names amortized			77						77						77						77						63						27						398						5.3
Trade names indefinite life			—						—						—						—						—						7,100						7,100						—
IPR&D			—						—						—						—						—						1,882						1,882						—
Total annual amortization			$	12,645					$	12,283					$	11,833					$	10,818					$	10,505					$	32,531					$	90,615

Schedule of Effect of Derivative Instruments on Comprehensive Income( Loss)

A tabular presentation of the effect of derivative instruments on our consolidated statement of comprehensive income of the 2019 Swaps which remain ineffective is as follows (amounts in thousands):

For the three months ended June 30, 2024

Account

March 31, 2024 Balance

Amount of comprehensive loss recognized on derivative net of taxes

Amount of loss reclassified out of accumulated OCI into income (prior period effective portion), net of taxes*

June 30, 2024 Balance

Location

Accumulated Other Comprehensive Loss, net of taxes

$(10,886)

$—

$6,517

$(4,369)

Equity

*Net of taxes of $2.2 million for the three months ended June 30, 2024.

For the six months ended June 30, 2024

Account

December 31, 2023 Balance

Amount of comprehensive loss recognized on derivative net of taxes

Amount of loss reclassified out of accumulated OCI into income (prior period effective portion), net of taxes*

June 30, 2024 Balance

Location

Accumulated Other Comprehensive Loss, net of taxes

$(11,625)

$—

$7,256

$(4,369)

Equity

*Net of taxes of $2.4 million for the six months ended June 30, 2024.

A tabular presentation of the effect of derivative instruments on our statement of operations of the 2019 Swaps which remain ineffective is as follows (amounts in thousands):

For the three months ended June 30, 2024

Ineffective interest rate swap

Amount of loss recognized in income on derivative (current period ineffective portion)

Location of loss recognized in Income on derivative (current period ineffective portion)

Amount of loss reclassified from accumulated OCI into income (prior period effective portion)

Location of loss reclassified from accumulated OCI into income (prior period effective portion)

Interest rate contracts

$

(1,890)

Other income (expense)

$

6,517

Interest Expense

For the six months ended June 30, 2024

Ineffective interest rate swap

Amount of gain recognized in income on derivative (current period ineffective portion)

Location of gain recognized in Income on derivative (current period ineffective portion)

Amount of loss reclassified from accumulated OCI into income (prior period effective portion)

Location of loss reclassified from accumulated OCI into income (prior period effective portion)

Interest rate contracts

$

(674)

Other income (expense)

$

7,256

Interest Expense

Schedule of Business Acquisitions by Acquisition, Contingent Consideration

A tabular rollforward of contingent consideration is as follows (amounts in thousands):

For the three months ended June 30, 2024
Entity						Account						March 31, 2024 Balance						Settlement of contingent consideration						Change in valuation of contingent consideration						Currency translation						June 30, 2024 Balance
Heart and Lung						Accrued expenses						4,246						$	(3,614)					$	—					$	—					$	632
For the three months ended June 30, 2023
Entity						Account						March 31, 2023 Balance						Settlement of contingent consideration						Change in valuation of contingent consideration						Currency translation						June 30, 2023 Balance
Heart and Lung						Accrued Expenses & Other Long Term Liabilities						13,130						$	—					$	867					$	361					$	14,358
For the six months ended June 30, 2024
Entity						Account						January 1, 2024 Balance						Settlement of contingent consideration						Change in valuation of contingent consideration						Currency translation						June 30, 2024 Balance
Heart and Lung						Accrued expenses						6,879						$	(8,221)					$	1,060					$	914					$	632
For the six months ended June 30, 2023
Entity						Account						January 1, 2023 Balance						Settlement of contingent consideration						Change in valuation of contingent consideration						Currency translation						June 30, 2023 Balance
Heart and Lung						Accrued Expenses & Other Long Term Liabilities						11,656						$	—					$	1,991					$	711					$	14,358

Schedule of Fair Value of Assets and Liabilities

The tables below summarize the estimated fair values of certain of our financial assets that are subject to fair value measurements, and the classification of these assets on our condensed consolidated balance sheets, as follows (in thousands):

			As of June 30, 2024
			Level 1						Level 2						Level 3						Total
Current and long term assets
2019 Swaps - Interest Rate Contracts			$	—					$	14,443					$	—					$	14,443

			As of December 31, 2023
			Level 1						Level 2						Level 3						Total
Current and long term assets
2019 Swaps - Interest Rate Contracts			$	—					$	15,118					$	—					$	15,118

The table below summarizes the estimated fair values of holdback relating to our Heart and Lung Imaging Limited acquisition on November 1, 2022 that are subject to fair value measurements and the classification of these liabilities on our condensed consolidated balance sheets, as follows (in thousands):

			As of June 30, 2024
			Level 1						Level 2						Level 3						Total
Accrued expenses
Heart and Lung			$	—					$	—					$	632					$	632

			As of December 31, 2023
			Level 1						Level 2						Level 3						Total
Accrued expenses
Heart & Lung Imaging Limited			$	—					$	—					$	6,879					$	6,879

The table below summarizes the estimated fair value compared to our face value of our long-term debt as follows (in thousands):

			As of June 30, 2024
			Level 1						Level 2						Level 3						Total Fair Value						Total Face Value
Barclays Term Loans and Truist Term Loan			$	—					$	1,017,813					$	—					$	1,017,813					$	1,015,625

			As of December 31, 2023
			Level 1						Level 2						Level 3						Total Fair Value						Total Face Value
Barclays Term Loans and Truist Term Loan			$	—					$	824,759					$	—					$	824,759					$	823,063

Schedule of Earnings Per Share

Earnings per share is based upon the weighted average number of shares of common stock and common stock equivalents outstanding, net of common stock held in treasury, as follows (in thousands except share and per share data):

			Three Months Ended June 30,												Six Months Ended June 30,
			2024						2023						2024						2023
NET (LOSS) INCOME ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS			$	(2,982)					$	8,369					$	(5,761)					$	(12,636)
BASIC NET (LOSS) INCOME PER SHARE ATTRIBUTABLE TO RADNET, INC.'S COMMON STOCKHOLDERS
Weighted average number of common shares outstanding during the period			73,419,124						59,880,803						71,795,080						59,221,453
Basic and diluted net loss per share attributable to RadNet, Inc.'s common stockholders			$	(0.04)					$	0.14					$	(0.08)					$	(0.21)
DILUTED NET (LOSS) INCOME PER SHARE ATTRIBUTABLE TO RADNET, INC.'S COMMON STOCKHOLDERS
Weighted average number of common shares outstanding during the period			73,419,124						59,880,803						71,795,080						59,221,453
Add non-vested restricted stock subject only to service vesting			—						205,413						—						—
Add additional shares issuable upon exercise of stock options and contingently issuable shares			—						830,769						—						—
Weighted average number of common shares used in calculating diluted net income per share			73,419,124						60,916,985						71,795,080						59,221,453
Changes in FV associated with contingently issuable shares			$	—					$	(934)					$	—					$	—
Net (loss) income attributable to RadNet, Inc's common stockholders for diluted share calculation			$	(2,982)					$	7,435					$	(5,761)		$	—		$	(12,636)
Diluted net (loss) income per share attributable to RadNet, Inc.'s common stockholders			$	(0.04)					$	0.12					$	(0.08)					$	(0.21)
Earnings per share disclosures:
Fair value change for contingently issuable shares excluded from the computation of diluted per share amounts as its effect would be antidilutive			$	—					$	—					$	—					$	1,696,000
Stock options and non-vested restricted awards excluded from the computation of diluted per share amounts as their effect would be antidilutive:
Non-vested restricted stock subject to service vesting			670,486						—						685,104						644,623
Shares issuable upon the exercise of stock options			799,502						82,775						831,647						759,313
Contingently issuable shares			—						—						—						193,207

Schedule of Investment in Joint Ventures

The following table is a summary of our investment in joint ventures during the six months ended June 30, 2024 (in thousands):

Balance as of December 31, 2023			$	92,710
Equity in earnings in these joint ventures			7,713
Distribution of earnings			(1,000)
Equity contributions in existing joint ventures			1,421
Balance as of June 30, 2024			$	100,844

Schedule of Joint Venture Investment and Financial Information

The following table is a summary of key balance sheet data for these joint ventures as of June 30, 2024 and December 31, 2023 and income statement data for the six months ended June 30, 2024 and 2023 (in thousands):

Balance Sheet Data:			June 30, 2024						December 31, 2023
Current assets			$	55,812					$	39,819
Noncurrent assets			221,521						224,936
Current liabilities			(50,151)						(46,587)
Noncurrent liabilities			(74,074)						(70,834)
Total net assets			$	153,108					$	147,334

Income statement data for the six months ended June 30,			2024						2023
Net revenue			$	130,546					$	84,699
Net income			$	14,657					$	5,827

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