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Acquisitions of Businesses (Tables) | 9 Months Ended
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Sep. 30, 2025
Acquisitions of Businesses [Abstract] |
Clinic Acquisition | 2025 Acquisitions
|  |  |  | % Interest |  | Number of |
Acquisition |  | Date |  | Acquired |  | Clinics |
July 2025 Acquisition |  | July 31, 2025 |  | 60% |  | 3 |
April 2025 Acquisition |  | April 30, 2025 |  | 40% |  | * |
February 2025 Acquisition |  | February 28, 2025 |  | 65% |  | 3 |
* | Home-care business
2024 Acquisitions
|  |  |  | % Interest |  | Number of |
Acquisition |  | Date |  | Acquired |  | Clinics |
November 2024 Acquisition |  | November 30, 2024 |  | 75% |  | 8 |
October 2024 Acquisition |  | October 31, 2024 |  | 50% |  | 50 |
August 2024 Acquisition |  | August 31, 2024 |  | 70% |  | 8 |
April 2024 Acquisition |  | April 30, 2024 |  | ** |  | * |
March 2024 Acquisition |  | March 29, 2024 |  | 50% |  | 9 |
* | IIP business.
** | On April 30, 2024, one of the Company’s primary IIP businesses, Briotix Health Limited Partnership, acquired 100% of an IIP business.
Purchase Price Allocation | The following table provides details on the preliminary purchase price allocation for the acquisitions described above.
|  | Physical Therapy |
|  | Operations |
|  | (In thousands) |
Cash paid, net of cash acquired |  | $ | 15,214 |
Seller note |  |  | 300 |
Deferred payments |  |  | - |
Contingent payments |  |  | 5,731 |
Total consideration |  | $ | 21,245 |
Estimated fair value of net tangible assets acquired: |  |  |  |
Total current assets |  | $ | 918 |
Total non-current assets |  |  | 240 |
Total liabilities |  |  | (495 | )
Net tangible assets acquired |  |  | 663 |
Customer and referral relationships |  |  | 5,981 |
Non-compete agreement |  |  | 310 |
Tradenames |  |  | 1,442 |
Goodwill |  |  | 20,903 |
Fair value of non-controlling interest (classified as redeemable non-controlling interest) |  |  | (8,054 | )
|  | $ | 21,245 |
The following table provides details on the purchase price allocations for the March 2024 Acquisition, the April 2024 Acquisition, the August 2024 Acquisition and preliminary purchase price allocations for the other acquisitions described above.
|  | Physical Therapy |
|  | IIP |  |  | Operations |  |  | Total |
|  | (In thousands) |
Cash paid, net of cash acquired |  | $ | 23,106 |  |  | $ | 109,983 |  |  | $ | 133,089 |
Seller note |  |  | 455 |  |  |  | 1,220 |  |  |  | 1,675 |
Deferred payments |  |  | - |  |  |  | 1,500 |  |  |  | 1,500 |
Contingent payments |  |  | 2,100 |  |  |  | 15,571 |  |  |  | 17,671 |
Total consideration |  | $ | 25,661 |  |  | $ | 128,274 |  |  | $ | 153,935 |
Estimated fair value of net tangible assets acquired: |  |  |  |  |  |  |  |  |  |  |  |
Total current assets |  | $ | 1,132 |  |  | $ | 9,447 |  |  | $ | 10,579 |
Total non-current assets |  |  | 563 |  |  |  | 30,360 |  |  |  | 30,923 |
Total liabilities |  |  | (463 | ) |  |  | (29,402 | ) |  |  | (29,865 | )
Net tangible assets acquired |  |  | 1,232 |  |  |  | 10,405 |  |  |  | 11,637 |
Customer and referral relationships |  |  | 6,500 |  |  |  | 52,630 |  |  |  | 59,130 |
Non-compete agreement |  |  | 210 |  |  |  | 3,590 |  |  |  | 3,800 |
Tradenames |  |  | 1,400 |  |  |  | 12,477 |  |  |  | 13,877 |
Goodwill |  |  | 16,319 |  |  |  | 149,315 |  |  |  | 165,634 |
Fair value of non-controlling interest (classified as redeemable non-controlling interest) |  |  | - |  |  |  | (100,143 | ) |  |  | (100,143 | )
|  | $ | 25,661 |  |  | $ | 128,274 |  |  | $ | 153,935 |
Operating results of the VIEs | The table below presents the operating results of the VIEs.
|  | Three Months Ended |  |  | Nine Months Ended |
|  | September 30, 2025 |  |  | September 30, 2025 |
|  | (In thousands) |
Net revenue |  | $ | 22,848 |  |  | $ | 65,771 |
Operating cost: |  |  |  |  |  |  |  |
Salaries and related costs |  |  | 13,436 |  |  |  | 39,516 |
Rent, supplies, contract labor and other |  |  | 5,277 |  |  |  | 13,855 |
Depreciation and amortization |  |  | 1,116 |  |  |  | 4,030 |
Provision for credit losses |  |  | 228 |  |  |  | 655 |
Total operating cost |  |  | 20,057 |  |  |  | 58,056 |
Gross profit |  |  | 2,791 |  |  |  | 7,715 |
Gain on fair value adjustments |  |  | (764 | ) |  |  | (764 | )
Other expense |  |  | 3 |  |  |  | 9 |
Provision for income taxes |  |  | 11 |  |  |  | 193 |
Net income |  | $ | 3,541 |  |  | $ | 8,277 |

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