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SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

Schedule of Service Fee Revenue

Our total service revenues during the three and nine months ended September 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 September 30,												Nine Months Ended September 30,
			2024						2023						2024						2023
Commercial insurance			$	255,375					$	218,923					$	752,514					$	652,597
Medicare			102,852						89,981						298,001						262,719
Medicaid			10,894						10,519						32,804						30,279
Workers' compensation/personal injury			10,232						9,745						33,088						34,785
Other patient revenue			10,607						10,443						34,524						30,191
Management fee revenue			6,242						3,922						18,255						12,203
Heart and lung			4,696						2,441						12,553						6,377
Other			10,314						3,768						18,918						14,248
Revenue under capitation arrangements			33,563						40,041						105,050						117,982
Imaging Center Segment Revenue			444,775						389,783						1,305,707						1,161,381
Digital Health Segment Revenue			16,367						12,185						46,856						34,866
Total service revenue			$	461,142					$	401,968					$	1,352,563					$	1,196,247

Schedule of Goodwill

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

			Imaging Center segment						Digital Health segment						Total
Balance as of December 31, 2023			606,557						$	72,906					$	679,463
Goodwill from acquisitions			30,729						—						30,729
Currency translation			1,223						426						1,649
Segment reorganization			(12,300)						12,300						—
Balance as of September 30, 2024			$	626,209					$	85,632					$	711,841

Schedule of Annual Amortization Expense

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

As of September 30, 2024:

			2024*						2025						2026						2027						2028						Thereafter						Total						Weighted average amortization period remaining in years
Management service contracts			$	572					$	2,287					$	2,287					$	2,287					$	2,287					$	6,669					$	16,389					7.2
Covenant not to compete and other contracts			261						897						610						315						225						68						2,376						3.1
Customer lists			318						1,141						1,019						844						803						11,108						15,233						17.4
Patent and trademarks			78						311						311						311						311						197						1,519						5.2
Developed technology			1,913						7,651						7,611						7,077						7,077						6,856						38,185						5.8
Trade names amortized			19						77						77						77						63						27						340						4.5
Trade names indefinite life			—						—						—						—						—						8,500						8,500						—
IPR&D			—						—						—						—						—						1,899						1,899						—
Total annual amortization			$	3,161					$	12,364					$	11,915					$	10,911					$	10,766					$	35,324					$	84,441

*Excluding the nine months ended September 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 September 30, 2024

Account

June 30, 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*

September 30, 2024 Balance

Location

Accumulated Other Comprehensive Loss, net of taxes

$(4,369)

$—

$986

$(3,383)

Equity

*Net of taxes of $0.4 million for the three months ended September 30, 2024.

For the nine months ended September 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*

September 30, 2024 Balance

Location

Accumulated Other Comprehensive Loss, net of taxes

$(11,625)

$—

$8,242

$(3,383)

Equity

*Net of taxes of $2.8 million for the nine months ended September 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 September 30, 2024

Ineffective interest rate swap

Amount recognized (current period ineffective portion)

Location recognized in profit and loss (current period ineffective portion)

Amount reclassified from accumulated OCI (prior period effective portion)

Location reclassified from accumulated OCI into profit and loss (prior period effective portion)

Interest rate contracts

$

6,755

Other income (expense)

$

986

Interest Expense

For the nine months ended September 30, 2024

Ineffective interest rate swap

Amount recognized (current period ineffective portion)

Location recognized in profit and loss (current period ineffective portion)

Amount reclassified from accumulated OCI (prior period effective portion)

Location reclassified from accumulated OCI into profit and loss (prior period effective portion)

Interest rate contracts

$

7,429

Other income (expense)

$

8,242

Interest Expense

Schedule of Business Acquisitions by Acquisition, Contingent Consideration

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

For the three months ended September 30, 2024
Entity						Account						June 30, 2024 Balance						Settlement of contingent consideration						Change in valuation of contingent consideration						Currency translation						September 30, 2024 Balance
Heart and Lung						Accrued expenses						632						$	—					$	—					$	—					$	632
For the three months ended September 30, 2023
Entity						Account						June 30, 2023 Balance						Settlement of contingent consideration						Change in valuation of contingent consideration						Currency translation						September 30, 2023 Balance
Heart and Lung						Accrued Expenses & Other Long Term Liabilities						14,358						$	(3,402)					$	915					$	(772)					$	11,099
For the nine months ended September 30, 2024
Entity						Account						January 1, 2024 Balance						Settlement of contingent consideration						Change in valuation of contingent consideration						Currency translation						September 30, 2024 Balance
Heart and Lung						Accrued expenses						6,879						$	(8,221)					$	1,060					$	914					$	632
For the nine months ended September 30, 2023
Entity						Account						January 1, 2023 Balance						Settlement of contingent consideration						Change in valuation of contingent consideration						Currency translation						September 30, 2023 Balance
Heart and Lung						Accrued Expenses & Other Long Term Liabilities						11,656						$	(3,402)					$	2,906					$	(61)					$	11,099

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 September 30, 2024
			Level 1						Level 2						Level 3						Total
Long term assets
2019 Swaps - Interest Rate Contracts			$	—					$	7,689					$	—					$	7,689

			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 September 30, 2024
			Level 1						Level 2						Level 3						Total
Accrued expenses
Heart & Lung Imaging Limited			$	—					$	—					$	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 the face value of our long-term debt as follows (in thousands):

			As of September 30, 2024
			Level 1						Level 2						Level 3						Total Fair Value						Total Face Value
Barclays Term Loan and Truist Term Loan			$	—					$	1,010,778					$	—					$	1,010,778					$	1,009,687

			As of December 31, 2023
			Level 1						Level 2						Level 3						Total Fair Value						Total Face Value
Barclays Term Loan 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 September 30,												Nine Months Ended September 30,
			2024						2023						2024						2023
NET INCOME (LOSS) ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS			$	3,209					$	17,540					$	(2,552)					$	4,904
BASIC NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS
Weighted average number of common shares outstanding during the period			73,494,709						67,793,404						72,587,321						62,113,707
Basic net income (loss) per share attributable to RadNet, Inc.'s common stockholders			$	0.04					$	0.26					$	(0.04)					$	0.08
DILUTED NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO RADNET, INC. COMMON STOCKHOLDERS
Weighted average number of common shares outstanding during the period			73,494,709						67,793,404						72,587,321						62,113,707
Add non-vested restricted stock subject only to service vesting			233,235						217,238						—						202,082
Add additional shares issuable upon exercise of stock options and contingently issuable shares			1,437,491						799,176						—						905,462
Weighted average number of common shares used in calculating diluted net income per share			75,165,435						68,809,818						72,587,321						63,221,251
Diluted net income (loss) income per share attributable to RadNet, Inc.'s common stockholders			$	0.04					$	0.25					$	(0.04)					$	0.08
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			—						—						680,318						—
Shares issuable upon the exercise of stock options			—						88,600						820,932						761,708
Shares issuable subject to satisfaction of certain contingencies			—						—						—						193,207
Weighted average shares for which the exercise price exceeds average market price of common stock			—						—						—						94,346

Schedule of Investment in Joint Ventures

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

Balance as of December 31, 2023			$	92,710
Equity in earnings in these joint ventures			11,308
Distribution of earnings			(1,000)
Equity contributions in existing joint ventures			1,496
Balance as of September 30, 2024			$	104,514

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 September 30, 2024 and December 31, 2023 and income statement data for the nine months ended September 30, 2024 and 2023 (in thousands):

Balance Sheet Data:			September 30, 2024						December 31, 2023
Current assets			$	64,175					$	39,819
Noncurrent assets			219,478						224,936
Current liabilities			(41,550)						(46,587)
Noncurrent liabilities			(70,607)						(70,834)
Total net assets			$	171,496					$	147,334

Income statement data for the nine months ended September 30,			2024						2023
Net revenue			$	195,905					$	129,020
Net income			$	23,949					$	7,906

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