NONE false 0001800682 0001800682 2024-04-03 2024-04-03

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): April 11, 2024 (April 3, 2024)

 

 

 

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Cano Health, Inc.

(Exact name of registrant as specified in its charter)

 

 

 

Commission File Number: 001-39289

 

Delaware   98-1524224
(State or other jurisdiction of
incorporation or organization)
  (IRS Employer
Identification No.)
9725 NW 117th Avenue, Miami, FL   33178
(Address of principal executive offices)   (Zip Code)

(855) 226-6633

(Registrant’s telephone number, including area code)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading
Symbol(s)

 

Name of each exchange
on which registered

Class A common stock, $0.01 par value per share   CANOQ   OTC Pink Marketplace

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 


As previously disclosed in a Current Report on Form 8-K filed by the Company on February 5, 2024, on February 4, 2024, Cano Health, Inc. (the “Company”) and certain of its direct and indirect subsidiaries (collectively, the “Debtors”) filed voluntary petitions (the “Chapter 11 Cases”) in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”) seeking relief under Chapter 11 of Title 11 of the United States Code (the “Bankruptcy Code”). The Chapter 11 Cases are being jointly administered under Case No. 24-10164. The Debtors continue to operate their business and manage their properties as “debtors-in-possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court. Additional information about the Chapter 11 Cases, including access to Bankruptcy Court documents, is available online at https://www.kccllc.net/CanoHealth, a website administered by Kurtzman Carson Consultants LLC, the Debtors’ Bankruptcy Court-approved third-party bankruptcy claims and noticing agent, and on the docket of the Chapter 11 Cases, which can be accessed via PACER at https://pacer.gov. The information on these websites and docket is not incorporated by reference into, and does not constitute part of, this Current Report on Form 8-K.

 

Item 8.01

Other Events.

On April 3, 2024, the Company filed with the Bankruptcy Court the monthly operating report for the period beginning February 1, 2024 and ending February 29, 2024 (collectively, the “Monthly Operating Report”). The Monthly Operating Report is attached to this Current Report on Form 8-K (the “Form 8-K”) as Exhibit 99.1 and is incorporated herein by reference in its entirety. This Form 8-K (including the exhibit hereto) will not be deemed an admission as to the materiality of any information filed herewith. The Monthly Operating Report and other filings with the Bankruptcy Court related to the Chapter 11 Cases may be available electronically at https://www.kccllc.net/CanoHealth. Documents and other information available on such website are not part of this Form 8-K and shall not be deemed incorporated by reference into this Form 8-K.

Cautionary Statement Regarding the Monthly Operating Report

The Company cautions investors and potential investors not to place undue reliance upon the information contained in the Monthly Operating Report, which was not prepared for the purpose of providing the basis for an investment decision relating to any of the Company’s securities. The Monthly Operating Report is limited in scope, covers a limited time period and has been prepared solely for the purpose of complying with the Bankruptcy Court’s monthly reporting requirements. The Monthly Operating Report was not audited or reviewed by independent accountants, was not prepared in accordance with generally accepted accounting principles in the United States, is in a format prescribed by applicable bankruptcy laws or rules, and is subject to future adjustment and reconciliation. There can be no assurance that, from the perspective of an investor or potential investor in the Company’s securities, the Monthly Operating Report is complete. The Company has not yet completed its quarter-end financial close processes for the fiscal quarter ended March 31, 2024, as such the information contained in the Monthly Operating Report is based on financial information currently available to the Company, including certain assumptions and estimates by management, and should be considered preliminary. As such, the Company’s actual results for the quarterly period covered in part by the Monthly Operating Report may materially vary from the preliminary results presented in such report. The Monthly Operating Report also contains information for periods which are shorter or otherwise different from those required in the Company’s reports pursuant to the Exchange Act, and such information might not be indicative of the Company’s financial condition or operating results for the period that would be reflected in the Company’s financial statements or in its reports pursuant to the Exchange Act. Results set forth in the Monthly Operating Report should not be viewed as indicative of future results.

Forward Looking Statements

This Current Report on Form 8-K contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Forward-looking statements relate to future events and involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and could materially affect actual results, performance or achievements. These forward-looking statements generally can be identified by words such as “will,” “shall,” “may,” “anticipates,” “forecasts,” “plans,” “seeks,” or other words or phrases of similar import. Such statements include, without limitation, statements regarding: (i) that certain Restructuring Support Agreement between the Company, certain of its direct and indirect subsidiaries and the lenders party thereto, dated as of February 4, 2024 (the “RSA”), the transactions contemplated thereby, and the expected benefits thereof, including that it will enable the Company to substantially reduce its debt and position the Company to achieve long-term success and maximize value; (ii) the


Company’s Chapter 11 Cases, including, without limitation, the outcome of the Chapter 11 Cases and the Company’s expectations as to receipt of and timing for the Bankruptcy Court approvals and the timing of its emergence from the proceedings, as well as the expected benefits of the proceedings, such as that they will strengthen the Company’s financial condition, position the Company to advance its ongoing transformation plan that is designed to significantly reduce costs, enhance productivity, and improve cash flow, ensure patients continue to receive high-quality care across medical centers and improve health outcomes for patients at a lower cost, including the benefits from such activities, including our expectations regarding achieving approximately $290 million of cost reductions by the end of 2024, including approximately $105 million in initiatives currently in process or already implemented (the “Transformation Plan”); (iii) the availability of liquidity from the Company’s debtor-in-possession financing, including the Senior Secured Superpriority Debtor-in-Possession Credit Agreement, dated as of February 7, 2024, and the various conditions to which such debtor-in-possession financing is subject and the risk that these conditions may not be satisfied for various reasons, including for reasons outside of the Company’s control, as well as the Company’s planned uses of such funds, including, without limitation that the new capital will provide sufficient liquidity to support the Company’s ongoing operations throughout the restructuring process; (iv) the Company’s execution of one or more aspects of the Transformation Plan; and (v) the Company’s anticipated performance, operations, financial strength, potential, and prospects for long-term shareholder value creation, anticipated results of operations, including our business strategies, our projected costs, prospects and plans, and other aspects of our operations or operating results. It is uncertain whether any of the events anticipated by the forward-looking statements will occur, or, if any of them do, what impact they will have on our results of operations and financial condition. Important risks and uncertainties that could cause our actual results and financial condition to differ materially from those indicated in forward-looking statements include, among others: changes in market or industry conditions, the regulatory environment, competitive conditions, and/or consumer receptivity to our services; changes in our strategy, future operations, prospects and plans; our ability to realize expected financial results, including with respect to patient membership, total revenue and earnings; our ability to predict and control our medical cost ratio; our ability to maintain our relationships with health plans and other key payors; our future capital requirements and sources and uses of cash, including funds to satisfy our liquidity needs; our ability to attract and retain members of management and our Board of Directors; and/or our ability to recruit and retain qualified team members and independent physicians. Actual results may also differ materially from such forward-looking statements for a number of other reasons, including those set forth in our filings with the SEC, including, without limitation, in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the SEC on April 1, 2024 (the “2023 Form 10-K”), as well as our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K that we have filed or will file with the SEC during 2023 and 2024 (which may be viewed on the SEC’s website at http://www.sec.gov or on our website at http://www.investors.canohealth.com/ir-home), as well as reasons including, without limitation, our experiencing delays or difficulties in, and/or unexpected or less than anticipated results from: (i) our efforts to successfully pursue the Chapter 11 Cases; (ii) less than expected benefits from the RSA; (iii) less than expected access to liquidity and greater than anticipated costs and expenses; and/or (iv) less than expected cost reductions and/or any of the other expected benefits from the Transformation Plan, such as due to higher than expected costs and charges to achieve one or more aspects of such plan or delays in achieving such benefits. For a detailed discussion of other risks and uncertainties that could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, please refer to our filings with the SEC, including, without limitation, our 2023 Form 10-K and our other SEC filings noted above. Factors other than those listed above could also cause our results to differ materially from expected results. Forward-looking statements speak only as of the date they are made and, except as required by law, we undertake no obligation or duty to publicly update or revise any forward-looking statement, whether to reflect actual results of operations; changes in financial condition; changes in general U.S. or international economic, industry conditions; changes in estimates, expectations or assumptions; or other circumstances, conditions, developments or events arising after the issuance of this Current Report on Form 8-K. Additionally, the business and financial materials and any other statement or disclosure on or made available through the Company’s websites or other websites referenced herein shall not be incorporated by reference into this Current Report on Form 8-K.

The Company cautions that trading in the Company’s securities during the pendency of the Chapter 11 Cases is highly speculative and poses substantial risks. Trading prices for the Company’s securities may bear little or no relationship to the actual recovery, if any, by holders of the Company’s securities in the Chapter 11 Cases. Holders of shares of the Company’s Class A common stock could experience a complete loss on their investment, depending on the outcome of the Chapter 11 Cases.


Item 9.01.

Financial Statements and Exhibits.

(d) Exhibits

The exhibits listed on the Exhibit Index are incorporated herein by reference.

Exhibit Index

 

Exhibit
No.

  

Description

99.1    Cano Health, Inc. Monthly Operating Report for the period ended February 29, 2024
104    Cover page Interactive Data File (embedded within the Inline XBRL document).

 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

      CANO HEALTH, INC.
April 11, 2024     By:  

/s/ Mark D. Kent

      Mark D. Kent
      Chief Executive Officer

Exhibit 99.1

 

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UNITED STATES BANKRUPTCY COURT DISTRICT OF Delaware In Re. Cano Health, Inc. § Case No. 24-10164 § § Lead Case No. 24-10164 Debtor(s) § Jointly Administered Chapter 11 Reporting Period Ended: 02/29/2024 Petition Date: 02/04/2024 Months Pending: 1 Industry Classification: 6 2 1 1 Reporting Method: Accrual Basis Cash Basis Debtor’s Full-Time Employees (current): 0 Debtor’s Full-Time Employees (as of date of order for relief): 0 Supporting Documentation (check all that are attached): (For jointly administered debtors, any required schedules must be provided on a non-consolidated basis for each debtor) Statement of cash receipts and disbursements Balance sheet containing the summary and detail of the assets, liabilities and equity (net worth) or deficit Statement of operations (profit or loss statement) Accounts receivable aging Postpetition liabilities aging Statement of capital assets Schedule of payments to professionals Schedule of payments to insiders All bank statements and bank reconciliations for the reporting period Description of the assets sold or transferred and the terms of the sale or transfer /s/ Eladio Gil Eladio Gil Signature of Responsible Party Printed Name of Responsible Party 04/03/2024 Date 9725 NW 117th Ave, Miami, FL 33178 Address STATEMENT: This Periodic Report is associated with an open bankruptcy case; therefore, § 1320.4(a)(2) applies.


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Case 24-10164-KBO Doc 561 Filed 04/03/24 Page 2 of 34 Debtor’s Name Cano Health, Inc. Case No. 24-10164 Part 1: Cash Receipts and Disbursements Current Month Cumulative a. Cash balance beginning of month $18,070 b. Total receipts (net of transfers between accounts) $22,048 $22,048 c. Total disbursements (net of transfers between accounts) $0 $0 d. Cash balance end of month (a+b-c) $40,117 e. Disbursements made by third party for the benefit of the estate $0 $0 f. Total disbursements for quarterly fee calculation (c+e) $0 $0 Part 2: Asset and Liability Status Current Month (Not generally applicable to Individual Debtors. See Instructions.) a. Accounts receivable (total net of allowance) $0 b. Accounts receivable over 90 days outstanding (net of allowance) $0 c. Inventory (Book Market Other (attach explanation)) $0 d Total current assets $0 e. Total assets $0 f. Postpetition payables (excluding taxes) $0 g. Postpetition payables past due (excluding taxes) $0 h. Postpetition taxes payable $0 i. Postpetition taxes past due $0 j. Total postpetition debt (f+h) $0 k. Prepetition secured debt $0 l. Prepetition priority debt $0 m. Prepetition unsecured debt $0 n. Total liabilities (debt) (j+k+l+m) $0 o. Ending equity/net worth (e-n) $0 Part 3: Assets Sold or Transferred Current Month Cumulative a. Total cash sales price for assets sold/transferred outside the ordinary $0 $0 course of business b. Total payments to third parties incident to assets being sold/transferred outside the ordinary course of business $0 $0 c. Net cash proceeds from assets sold/transferred outside the ordinary course of business (a-b) $0 $0 Part 4: Income Statement (Statement of Operations) Current Month Cumulative (Not generally applicable to Individual Debtors. See Instructions.) a. Gross income/sales (net of returns and allowances) $1,253 b. Cost of goods sold (inclusive of depreciation, if applicable) $0 c. Gross profit (a-b) $1,253 d. Selling expenses $0 e. General and administrative expenses $700,703 f. Other expenses $0 g. Depreciation and/or amortization (not included in 4b) $0 h. Interest $0 i. Taxes (local, state, and federal) $0 j. Reorganization items $0 k. Profit (loss) $-699,449 $-699,449


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Case 24-10164-KBO Doc 561 Filed 04/03/24 Page 3 of 34 Debtor’s Name Cano Health, Inc. Case No. 24-10164 Part 5: Professional Fees and Expenses Approved Approved Paid Current Paid Current Month Cumulative Month Cumulative a. Debtor’s professional fees & expenses (bankruptcy) Aggregate Total Itemized Breakdown by Firm Firm Name Role i ii iii iv v vi vii viii ix x xi xii xiii xiv xv xvi xvii xviii xix xx xxi xxii xxiii xxiv xxv xxvi xxvii xxviii xxix xxx xxxi xxxii xxxiii xxxiv xxxv xxxvi UST Form 11-MOR (12/01/2021) 3


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Case 24-10164-KBO Doc 561 Filed 04/03/24 Page 4 of 34 Debtor’s Name Cano Health, Inc. Case No. 24-10164 xxxvii xxxvii xxxix xl xli xlii xliii xliv xlv xlvi xlvii xlviii xlix l li lii liii liv lv lvi lvii lviii lix lx lxi lxii lxiii lxiv lxv lxvi lxvii lxviii lxix lxx lxxi lxxii lxxiii lxxiv lxxv lxxvi lxxvii lxxvii UST Form 11-MOR (12/01/2021) 4


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Case 24-10164-KBO Doc 561 Filed 04/03/24 Page 5 of 34 Debtor’s Name Cano Health, Inc. Case No. 24-10164 lxxix lxxx lxxxi lxxxii lxxxii lxxxiv lxxxv lxxxvi lxxxvi lxxxvi lxxxix xc xci xcii xciii xciv xcv xcvi xcvii xcviii xcix c ci Approved Approved Paid Current Paid Current Month Cumulative Month Cumulative b. Debtor’s professional fees & expenses (nonbankruptcy) Aggregate Total Itemized Breakdown by Firm Firm Name Role i ii iii iv v vi vii viii ix x xi xii xiii xiv UST Form 11-MOR (12/01/2021) 5


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Case 24-10164-KBO Doc 561 Filed 04/03/24 Page 6 of 34 Debtor’s Name Cano Health, Inc. Case No. 24-10164 xv xvi xvii xviii xix xx xxi xxii xxiii xxiv xxv xxvi xxvii xxviii xxix xxx xxxi xxxii xxxiii xxxiv xxxv xxxvi xxxvii xxxvii xxxix xl xli xlii xliii xliv xlv xlvi xlvii xlviii xlix l li lii liii liv lv lvi UST Form 11-MOR (12/01/2021) 6


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Case 24-10164-KBO Doc 561 Filed 04/03/24 Page 7 of 34 Debtor’s Name Cano Health, Inc. Case No. 24-10164 lvii lviii lix lx lxi lxii lxiii lxiv lxv lxvi lxvii lxviii lxix lxx lxxi lxxii lxxiii lxxiv lxxv lxxvi lxxvii lxxvii lxxix lxxx lxxxi lxxxii lxxxii lxxxiv lxxxv lxxxvi lxxxvi lxxxvi lxxxix xc xci xcii xciii xciv xcv xcvi xcvii xcviii UST Form 11-MOR (12/01/2021) 7


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Case 24-10164-KBO Doc 561 Filed 04/03/24 Page 8 of 34 Debtor’s Name Cano Health, Inc. Case No. 24-10164 xcix c c. All professional fees and expenses (debtor & committees) $0 $0 $0 $0 Part 6: Postpetition Taxes Current Month Cumulative a. Postpetition income taxes accrued (local, state, and federal) $0 $0 b. Postpetition income taxes paid (local, state, and federal) $0 $0 c. Postpetition employer payroll taxes accrued $0 $0 d. Postpetition employer payroll taxes paid $0 $0 e. Postpetition property taxes paid $0 $0 f. Postpetition other taxes accrued (local, state, and federal) $0 $0 g. Postpetition other taxes paid (local, state, and federal) $0 $0 Part 7: Questionnaire—During this reporting period: a. Were any payments made on prepetition debt? (if yes, see Instructions) Yes No b. Were any payments made outside the ordinary course of business Yes No without court approval? (if yes, see Instructions) c. Were any payments made to or on behalf of insiders? Yes No d. Are you current on postpetition tax return filings? Yes No e. Are you current on postpetition estimated tax payments? Yes No f. Were all trust fund taxes remitted on a current basis? Yes No g. Was there any postpetition borrowing, other than trade credit? Yes No (if yes, see Instructions) h. Were all payments made to or on behalf of professionals approved by Yes No N/A the court? i. Do you have: Worker’s compensation insurance? Yes No If yes, are your premiums current? Yes No N/A (if no, see Instructions) Casualty/property insurance? Yes No If yes, are your premiums current? Yes No N/A (if no, see Instructions) General liability insurance? Yes No If yes, are your premiums current? Yes No N/A (if no, see Instructions) j. Has a plan of reorganization been filed with the court? Yes No k. Has a disclosure statement been filed with the court? Yes No l. Are you current with quarterly U.S. Trustee fees as Yes No set forth under 28 U.S.C. § 1930? UST Form 11-MOR (12/01/2021) 8


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Case 24-10164-KBO Doc 561 Filed 04/03/24 Page 9 of 34 Debtor’s Name Cano Health, Inc. Case No. 24-10164 Part 8: Individual Chapter 11 Debtors (Only) a. Gross income (receipts) from salary and wages $0 b. Gross income (receipts) from self-employment $0 c. Gross income from all other sources $0 d. Total income in the reporting period (a+b+c) $0 e. Payroll deductions $0 f. Self-employment related expenses $0 g. Living expenses $0 h. All other expenses $0 i. Total expenses in the reporting period (e+f+g+h) $0 j. Difference between total income and total expenses (d-i) $0 k. List the total amount of all postpetition debts that are past due $0 l. Are you required to pay any Domestic Support Obligations as defined by 11 Yes No U.S.C § 101(14A)? m. If yes, have you made all Domestic Support Obligation payments? Yes No N/A Privacy Act Statement 28 U.S.C. § 589b authorizes the collection of this information, and provision of this information is mandatory under 11 U.S.C. §§ 704, 1106, and 1107. The United States Trustee will use this information to calculate statutory fee assessments under 28 U.S.C. § 1930(a)(6). The United States Trustee will also use this information to evaluate a chapter 11 debtor’s progress through the bankruptcy system, including the likelihood of a plan of reorganization being confirmed and whether the case is being prosecuted in good faith. This information may be disclosed to a bankruptcy trustee or examiner when the information is needed to perform the trustee’s or examiner’s duties or to the appropriate federal, state, local, regulatory, tribal, or foreign law enforcement agency when the information indicates a violation or potential violation of law. Other disclosures may be made for routine purposes. For a discussion of the types of routine disclosures that may be made, you may consult the Executive Office for United States Trustee’s systems of records notice, UST-001, “Bankruptcy Case Files and Associated Records.” See 71 Fed. Reg. 59,818 et seq. (Oct. 11, 2006). A copy of the notice may be obtained at the following link: http:// www.justice.gov/ust/eo/rules_regulations/index.htm. Failure to provide this information could result in the dismissal or conversion of your bankruptcy case or other action by the United States Trustee. 11 U.S.C. § 1112(b)(4)(F). I declare under penalty of perjury that the foregoing Monthly Operating Report and its supporting documentation are true and correct and that I have been authorized to sign this report on behalf of the estate. /s/ Eladio Gil Eladio Gil Signature of Responsible Party Printed Name of Responsible Party Chief Financial Officer 04/03/2024 Title Date UST Form 11-MOR (12/01/2021) 9


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Case 24-10164-KBO Doc 561 Filed 04/03/24 Page 10 of 34 Debtor’s Name Cano Health, Inc. Case No. 24-10164 UST Form 11-MOR (12/01/2021) 10


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Case 24-10164-KBO Doc 561 Filed 04/03/24 Page 11 of 34 Debtor’s Name Cano Health, Inc. Case No. 24-10164 Bankruptcy1to50 Bankruptcy51to100 NonBankruptcy1to50 NonBankruptcy51to100 UST Form 11-MOR (12/01/2021) 11


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Case 24-10164-KBO Doc 561 Filed 04/03/24 Page 12 of 34 Debtor’s Name Cano Health, Inc. Case No. 24-10164 PageThree PageFour UST Form 11-MOR (12/01/2021) 12


IN THE UNITED STATES BANKRUPTCY COURT

FOR THE DISTRICT OF DELAWARE

 

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    x     
In re   :      Chapter 11
    :     
CANO HEALTH, INC., et al.,   :      Case No. 24-10164 (KBO)
    :     
    :     
Debtors.1   :      (Jointly Administered)

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    x     

STATEMENTS OF LIMITATIONS,

METHODOLOGY, AND DISCLAIMERS REGARDING

MONTHLY OPERATING REPORT FOR THE PERIOD

FROM FEBRUARY 4, 2024 THROUGH FEBRUARY 29, 2024

Introduction

Cano Health, Inc. and certain of its subsidiaries, as debtors and debtors in possession (collectively, the “Debtors”) in the above-captioned chapter 11 cases (the “Chapter 11 Cases”) have prepared and filed the attached Monthly Operating Report (this “MOR”) for the period including February 4, 2024 through February 29, 2024 (the “Reporting Period”) in the United States Bankruptcy Court for the District of Delaware (the “Court”). The Debtors have prepared this MOR with the assistance of their advisors and professionals solely for the purpose of complying with the reporting requirements applicable in the Chapter 11 Cases.

Although the Debtors generally prepare their financial statements on a consolidated basis, this MOR has been prepared on an entity-by-entity basis (excluding most intercompany eliminations) for each of the Debtors. This MOR is unaudited, limited in scope, and does not purport to represent financial information prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), nor is it in accordance with federal or state securities laws or other applicable non-bankruptcy law or in lieu of complying with any periodic reporting requirements thereunder. This MOR is not intended to fully reconcile to the consolidated financial information prepared by the Debtors. Information contained in this MOR is derived from the Debtors’ books and records, but does not reflect in all circumstances the presentation for U.S. GAAP or U.S. Securities and Exchange Commission reporting purposes. In order to comply with their obligations to provide MORs during these Chapter 11 Cases, the Debtors have prepared this MOR using the best information presently available to them, which has been collected, maintained, and prepared in accordance with their historical accounting practices, prior to consolidating and eliminating entries. The results of operations, financial position, and schedule of receipts and disbursements contained herein are not necessarily indicative of results that may be expected for any period other the Reporting Period, and may not necessarily reflect the Debtors’ future consolidated results of operations, financial position, and schedule of receipts and disbursements. The Debtors caution readers not to place undue reliance upon this MOR. There can be no assurance that such information is complete, and this MOR may be subject to revision.

 

 

1 

The last four digits of Cano Health, Inc.’s tax identification number are 4224. A complete list of the Debtors in the chapter 11 cases may be obtained on the website of the Debtors’ claims and noticing agent at https://www.kccllc.net/CanoHealth. The Debtors’ mailing address is 9725 NW 117th Avenue, Miami, Florida 33178.

 

Official MOR Form    Monthly Operating Report About Debtor Entities’ Value, Operations, Profitability and Cash Flows   1


Interest in Subsidiaries and Affiliates

Cano Health, Inc. (“CHI”) owns the equity interests in Primary Care (ITC) Intermediate Holdings, LLC (“PCIH”) through 67.72% economic interests and 100% voting interests. PCIH owns 100% of the membership interests in Cano Health, LLC (“CH LLC”). CH LLC directly or indirectly owns 100% of the membership interests in all remaining Debtors.

In order for the Debtors to deliver healthcare services to patients in certain markets, the Debtors contracted with entities (the “Physicians Groups”) that enabled the Debtors to employ healthcare providers to contract with managed care payors. Each Physician Group contracted with the Company through a Management Services Agreement (“MSA”), which allowed such Physician Groups to provide certain services. Prior to the Petition Date, the Debtors terminated such MSAs and have sold all or substantially all of the assets of the Physicians Groups.

Notwithstanding such agreements having been terminated, the MOR for CH LLC provides financial figures for the Physician Groups, which include Cano Health Texas, PLLC, Cano Health Nevada, PLLC, Cano Health California, PC, CHC Provider Network, PC and Cano Health Illinois, PLLC.

Reservation of Rights

This MOR is limited in scope, covers a limited time period, and has been prepared solely for the purpose of complying with the monthly reporting requirements of the Debtors’ Chapter 11 Cases. The unaudited financial information has been derived from the Debtors’ books and records. The information presented herein has not been subject to all procedures that typically would be applied to financial information in accordance with U.S. GAAP. Upon the application of such procedures, the Debtors believe that the financial information could be subject to material change. The information furnished in this MOR includes normal recurring adjustments but does not include all of the adjustments that typically would be made for interim financial information presented in accordance with U.S. GAAP.

Although the Debtors made commercially reasonable efforts to ensure the accuracy and completeness of this MOR, inadvertent errors and omissions may occur. Accordingly, the Debtors hereby reserve all of their rights to dispute the nature, validity, status, enforceability, or executory natures of any claim amount, agreement, representation, or other statement set forth in this MOR. Further, the Debtors reserve the right to amend or supplement this MOR in all respects, as may be necessary and appropriate, but shall be under no obligation to do so. Nothing contained in this MOR shall constitute a waiver of any of the Debtors’ rights or an admission with respect to the Chapter 11 Cases.

The Debtors’ management prepared this MOR with the assistance of their advisors, and relied on financial data derived from their books, records, and historical financial statements that were available at the time of this MOR’s preparation. Eladio Gil, the Debtors’ Interim Chief Financial Officer, has signed each MOR. Mr. Gil is an authorized signatory for each of the Debtors. In reviewing and signing this MOR, Mr. Gil necessarily has relied upon the efforts, statements, advice, and representations of various personnel employed by the Debtors and their advisors. Mr. Gil has not (and could not have) personally verified the accuracy of each statement, representation, and answer contained in each MOR.

MOR Form

Part 1: Cash Receipts and Disbursements

Reported cash receipts may include intercompany Debtor-to-Debtor transactions given the nature of the Debtors’ cash management system and the reporting requirements for this MOR. Reported cash disbursements exclude any intercompany Debtor-to-Debtor transactions and only represent payments made to external third parties. As a result, the estimated disbursements reported on Part 1 of the MOR may not agree with the Debtors’ bank statements or the Debtors’ books and records. Reconciling differences will exist between bank statement balances and balance sheet cash balances due to routine timing differences between payment execution in the Debtors’ financial system and disbursement of funds from Debtor bank accounts.

 

Official MOR Form    Monthly Operating Report About Debtor Entities’ Value, Operations, Profitability and Cash Flows   2


Part 2: Asset and Liability Status

Please refer to the “Introduction,” “Interest in Subsidiaries and Affiliates” and “Reservation of Rights” notes above for information about presentation and limitations that may exist in the MOR.

Postpetition payables primarily consists of trade payables balances.

Part 3: Assets Sold or Transferred

No such transactions or activities occurred during the Reporting Period. Please refer to the “Introduction,” “Interest in Subsidiaries and Affiliates” and “Reservation of Rights” notes above for information about presentation and limitations that may exist in the MOR.

Part 4: Income Statement (Statement of Operations)

Please refer to the “Introduction,” “Interest in Subsidiaries and Affiliates” and “Reservation of Rights” notes above for information about presentation and limitations that may exist in the MOR.

Part 5: Professional Fees and Expenses

The Debtors did not make any payments to any restructuring professionals or committee professionals (whether retained or anticipated to be retained) during the Reporting Period.

Part 6: Postpetition Taxes

In the ordinary course of business, the Debtors are obligated to pay certain taxes and governmental fees. On March 5, 2024 (outside the Reporting Period), the Court entered the Final Order Pursuant to 11 U.S.C. §§ 105(a), 363(b), 507(a), and 541(d) (I) Authorizing Debtors to Pay Prepetition Taxes and Fees, and (II) Granting Related Relief [Docket No. 242] authorizing, but not directing, the Debtors to, among other things, pay Taxes and Fees that arise or accrue in the ordinary course of business on a postpetition basis consistent with prepetition practices. The Debtors believe that they are current with respect to any postpetition Taxes and Fees that have come due.

Part 7(g): Postpetition Borrowing

On March 6, 2024, the Court entered the Final Order Pursuant to 11 U.S.C. §§ 105, 361, 362, 363, 364, 507, and 552 and Fed. R. Bankr. P. 2002, 4001, 6003, 6004, and 9014 for (I) Authority to (A) Obtain Postpetition Financing, (B) Use Cash Collateral (C) Grant Liens and Provide Superpriority Administrative Expense Status, (D) Grant Adequate Protection, and (E) Modify the Automatic Stay, and (II) Related Relief [Docket No. 271] authorizing the Debtors to (i) obtain postpetition financing (the “DIP Financing”) to fund the costs of implementing the Debtors’ restructuring in the form of a superpriority senior secured multiple draw term loan credit facility in the aggregate principal amount of $150,000,000, and (ii) the Debtors’ use of cash collateral. During the Reporting Period, the Debtors drew $50,000,000 under the DIP Financing.

 

Official MOR Form    Monthly Operating Report About Debtor Entities’ Value, Operations, Profitability and Cash Flows   3


UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

 

In re: Cano Health, Inc., et al.

Debtor Cash Receipts and Disbursements

 

Case No: 24-10164

Reporting Period: February 4 – February 29, 2024

$ in thousands

 

 

Case Number    24-10164      24-10165      24-10166      24-10167      24-10168      24-10169      24-10170      24-10171      24-10172      24-10173  
     Cano Health,
Inc.
     Primary Care
(ITC)

Intermediate
Holdings,
LLC
     Complete Medical
Billing and
Coding

Services, LLC
     Cano Health,
LLC
     Cano Health
of Puerto

Rico LLC
     CHPR MSO
LLC
     Cano Health
of Florida,
LLC
     Cano Health
CA1 MSO,
LLC
     Physicians
Partners

Group
Merger,
LLC
     Cano Health
Nevada
Network,
LLC
 

Receipts

     22        —         —         16,298        —         —         —         —         68        —   

DIP Funds Received

     —         —         —         50,000        —         —         —         —         —         —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Receipts

     22        —         —         66,298        —         —         —         —         68        —   

Disbursements

  

Operating Disbursements

     —         —         —         3,403        —         —         —         —         —         —   

Operating Professional Costs

     —         —         —         —         —         —         —         —         —         —   

Payroll & Benefits

     —         —         —         13,466        —         —         —         —         —         —   

Pharmacy Rx Costs

     —         —         —         —         —         —         —         —         —         —   

PPG

     —         —         —         —         —         —         —         —         —         —   

Provider Payments

     —         —         —         4,299        —         —         —         —         1        —   

Operating Disbursements (Auto Debits)

     —         —         —         1,052        —         —         —         —         —         —   

Hartford L/C Increase

     —         —         —         —         —         —         —         —         —         —   

Transaction Fees and Other Disbursements

     —         —         —         3,557        —         —         —         —         —         —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Disbursements

     —         —         —         25,776        —         —         —         —         1        —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Cash Flow

   $ 22      $ —       $ —       $ 40,523      $ —       $ —       $ —       $ —       $ 67      $ —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

Official MOR Form    Monthly Operating Report About Debtor Entities’ Value, Operations, Profitability and Cash Flows   4


UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

 

In re: Cano Health, Inc., et al.

Debtor Cash Receipts and Disbursements

(continued)

 

Case No: 24-10164

Reporting Period: February 4 – February 29, 2024

$ in thousands

 

 

Case Number    24-10174      24-10175      24-10176      24-10177      24-10178      24-10179      24-10180      24-10181      24-10182      24-10183  
     Comfort
Pharmacy 2,
LLC
     Cano Medical
Center of
West Florida,
LLC
     Cano
Occupational
Health, LLC
     CH Dental
Administrative
Services LLC
     American
Choice
Healthcare,
LLC
     Physicians
Partners
Group
Puerto
Rico, LLC
(FL)
     DGM
MSO,
LLC
     Cano PCP
Wound
Care,
LLC
     Cano
Research
LLC
     Cano
Personal
Behavior
LLC
 

Receipts

     767        5        —         —         5,037        —         438        —         —         —   

DIP Funds Received

     —         —         —         —         —         —         —         —         —         —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Receipts

     767        5        —         —         5,037        —         438        —         —         —   

Disbursements

                             

Operating Disbursements

     —         —         —         —         —         —         —         —         —         —   

Operating Professional Costs

     —         —         —         —         —         —         —         —         —         —   

Payroll & Benefits

     —         —         —         —         —         —         —         —         —         —   

Pharmacy Rx Costs

     510        —         —         —         —         —         —         —         —         —   

PPG

     —         —         —         —         —         —         —         —         —         —   

Provider Payments

     —         —         —         —         1,381        —         233        —         —         —   

Operating Disbursements (Auto Debits)

     —         —         —         —         —         —         —         —         —         —   

Hartford L/C Increase

     —         —         —         —         —         —         —         —         —         —   

Transaction Fees and Other Disbursements

     —         —         —         —         —         —         —         —         —         —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Disbursements

     510        —         —         —         1,381        —         233        —         —         —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Cash Flow

   $ 257      $ 5      $ —       $ —       $ 3,656      $ —       $ 205      $ —       $ —       $ —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

Official MOR Form    Monthly Operating Report About Debtor Entities’ Value, Operations, Profitability and Cash Flows   5


UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

 

In re: Cano Health, Inc., et al.

Debtor Cash Receipts and Disbursements

(continued)

 

Case No: 24-10164

Reporting Period: February 4 – February 29, 2024

$ in thousands

 

 

Case Number    24-10184      24-10185     24-10186      24-10187      24-10188      24-10189      24-10190      24-10191      24-10192      24-10193  
     Cano PCP
MSO,
LLC
     Physicians
Partners
Group
Puerto
Rico, LLC
(PR)
    Cano HP
MSO,
LLC
     Cano PCP,
LLC
     Orange
Healthcare
Administration,
LLC
     ACH
Management
Services,
LLC
     Physicians
Partners
Group of
FL, LLC
     Cano
Behavior
Health
LLC
     PPG
Puerto
Rico
Blocker,
Inc.
     Orange Care
Group South
Florida
Management
Services
Organization,
LLC
 

Receipts

     —         —        —         1        —         186        —         —         —         —   

DIP Funds Received

     —         —        —         —         —         —         —         —         —         —   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Receipts

     —         —        —         1        —         186        —         —         —         —   

Disbursements

                            

Operating Disbursements

     —         —        —         —         —         —         —         —         —         —   

Operating Professional Costs

     —         —        —         —         —         —         —         —         —         —   

Payroll & Benefits

     —         —        —         —         —         —         —         —         —         —   

Pharmacy Rx Costs

     —         —        —         —         —         —         —         —         —         —   

PPG

     —         0       —         —         —         —         —         —         —         —   

Provider Payments

     —         —        —         —         —         —         —         —         —         —   

Operating Disbursements (Auto Debits)

     —         —        —         —         —         —         —         —         —         —   

Hartford L/C Increase

     —         —        —         —         —         —         —         —         —         —   

Transaction Fees and Other Disbursements

     —         —        —         —         —         —         —         —         —         —   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Disbursements

     —         0       —         —         —         —         —         —         —         —   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Cash Flow

   $ —       $ (0   $ —       $ 1      $ —       $ 186      $ —       $ —       $ —       $ —   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

Official MOR Form    Monthly Operating Report About Debtor Entities’ Value, Operations, Profitability and Cash Flows   6


UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

 

In re: Cano Health, Inc., et al.

Debtor Cash Receipts and Disbursements

(continued)

 

Case No: 24-10164

Reporting Period: February 4 – February 29, 2024

$ in thousands

 

 

Case Number    24-10194      24-10195      24-10196      24-10197      24-10198      24-10199      24-10200      24-10201      24-10202      24-10203  
     Cano Belen,
LLC
     Cano Health
Illinois
Network,
LLC
     Orange
Accountable
Care
Organization
of South
Florida LLC
     Cano Health
New Mexico
LLC
     Cano
Pharmacy,
LLC
     Orange
Accountable
Care
Organization,
LLC
     IFB
Pharmacy,
LLC
     American
Choice
Commercial
ACO, LLC
     Belen
Pharmacy
Group,
LLC
     Orange
Care
IPA of
New
York,
LLC
 

Receipts

     639        —         —         3        2,158        —         —         145        0        —   

DIP Funds Received

     —         —         —         —         —         —         —         —         —         —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Receipts

     639        —         —         3        2,158        —         —         145        0        —   

Disbursements

                             

Operating Disbursements

     —         —         —         —         —         —         —         —         —         —   

Operating Professional Costs

     —         —         —         —         —         —         —         —         —         —   

Payroll & Benefits

     —         —         —         —         —         —         —         —         —         —   

Pharmacy Rx Costs

     —         —         —         —         1,433        —         —         —         —         —   

PPG

     —         —         —         —         —         —         —         —         —         —   

Provider Payments

     —         —         —         —         —         —         —         —         —         —   

Operating Disbursements (Auto Debits)

     —         —         —         —         —         —         —         —         —         —   

Hartford L/C Increase

     —         —         —         —         —         —         —         —         —         —   

Transaction Fees and Other Disbursements

     —         —         —         —         —         —         —         —         —         —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Disbursements

     —         —         —         —         1,433        —         —         —         —         —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Cash Flow

   $ 639      $ —       $ —       $ 3      $ 725      $ —       $ —       $ 145      $ 0      $ —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

Official MOR Form    Monthly Operating Report About Debtor Entities’ Value, Operations, Profitability and Cash Flows   7


UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

 

In re: Cano Health, Inc., et al.

Debtor Cash Receipts and Disbursements

(continued)

 

Case No: 24-10164

Reporting Period: February 4 – February 29, 2024

$ in thousands

 

 

Case Number    24-10204      24-10205      24-10206      24-10207      24-10208      24-10209      24-10210      24-10211  
     University
Health Care
Pharmacy,
LLC
     Orange Care
IPA of
New Jersey,
LLC
     Cano Health
New York,
IPA, LLC
     Total Care
ACO,
LLC
     Clinical
Research of
Hollywood,
P.A.
     Cano Health
CA1, LLC
     Cano Health
Illinois 1
MSO, LLC
     Solis
Network
Solutions,
LLC
 

Receipts

     644        —         —         —         —         —         —         —   

DIP Funds Received

     —         —         —         —         —         —         —         —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Receipts

     644        —         —         —         —         —         —         —   

Disbursements

                       

Operating Disbursements

     —         —         —         —         —         —         —         —   

Operating Professional Costs

     —         —         —         —         —         —         —         —   

Payroll & Benefits

     —         —         —         —         —         —         —         —   

Pharmacy Rx Costs

     374        —         —         —         —         —         —         —   

PPG

     —         —         —         —         —         —         —         —   

Provider Payments

     —         —         —         —         —         —         —         —   

Operating Disbursements (Auto Debits)

     —         —         —         —         —         —         —         —   

Hartford L/C Increase

     —         —         —         —         —         —         —         —   

Transaction Fees and Other Disbursements

     —         —         —         —         —         —         —         —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Disbursements

     374        —         —         —         —         —         —         —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Cash Flow

   $ 270      $ —       $ —       $ —       $ —       $ —       $ —       $ —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

Official MOR Form    Monthly Operating Report About Debtor Entities’ Value, Operations, Profitability and Cash Flows   8


UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

 

In re: Cano Health, Inc., et al.

   Case No: 24-10164

Debtor Balance Sheets

   as of February 29, 2024
   $ in thousands

 

 

Case Number   24-10164     24-10165     24-10166     24-10167     24-10168     24-10169     24-10170     24-10171     24-10172     24-10173  
Entity   Cano Health, Inc.     Primary Care (ITC)
Intermediate
Holdings, LLC
    Complete Medical
Billing and Coding
Services, LLC
    Cano Health, LLC     Cano Health of
Puerto Rico LLC
    CHPR MSO LLC     Cano Health of
Florida, LLC
    Cano Health CA1
MSO, LLC
    Physicians Partners
Group Merger, LLC
    Cano Health
Nevada Network,
LLC
 

Assets

                   

Current assets:

                   

Cash, cash equivalents and restricted cash

    —        —        —        44,384       103       —        —        —        87       —   

Accounts receivable, net of unpaid service provider costs

    —        —        —        58,618       —        —        —        —        —        —   

Prepaid expenses and other current assets

    —        —        —        27,172       (0     —        (2     —        —        —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total current assets

    —        —        —        130,174       103       —        (2     —        87       —   

Property and equipment, net

    —        —        —        49,040       —        —        —        1       —        —   

Operating lease right of use assets

    —        —        —        61,848       5       —        —        —        —        —   

Goodwill

    —        —        —        (0     —        —        —        —        —        —   

Payor relationships, net

    —        —        —        520,342       —        —        —        —        —        —   

Other intangibles, net

    —        —        —        163,090       —        —        —        —        —        —   

Other assets

    (0     —        —        4,777       —        —        —        —        —        —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Assets

    (0     —        —        929,272       108       —        (2     1       87       —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Liabilities and stockholder’s equity

                   

Current liabilities:

                   

Accounts payable and accrued expenses

    —        —        —        114,589       37       —        (0     —        —        —   

Current portion of notes payable

    —        —        —        1,218,798       —        —        —        —        —        —   

Current portion of finance lease liabilities

    —        —        —        3,018       —        —        —        —        —        —   

Current portion due to seller

    —        —        —        48,245       —        —        —        —        —        —   

Current portion of operating lease liabilities

    —        —        —        22,096       7       —        —        —        —        —   

Other current liabilities

    145       —        —        69,452       —        —        —        —        —        —   

Intercompany

    (1,186,706     —        —        1,149,729       336       —        44       2,356       1,702       —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total current liabilities

    (1,186,561     —        —        2,625,928       380       —        44       2,356       1,702       —   

Notes payable, net of current portion and debt issuance costs

    —        —        —        (0     —        —        —        —        —        —   

Long term portion of operating lease liabilities

    —        —        —        108,589       5       —        —        —        —        —   

Due to seller, net of current portion

    —        —        —        0       —        —        —        —        —        —   

Long term portion of finance lease liabilities

    —        —        —        6,456       —        —        —        —        —        —   

Contingent considerations, net of current portion

    —        —        —        (0     —        —        —        —        —        —   

Other liabilities

    —        —        —        1,921       —        —        —        —        —        —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

    (1,186,561     —        —        2,742,894       385       —        44       2,356       1,702       —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Stockholder’s Equity/Members’ Capital Shares of Class A common stock $0.0001 par value

    25       —        —        —        —        —        —        —        —        —   

Shares of Class B common stock $0.0001 par value

    31       —        —        —        —        —        —        —        —        —   

Members’ capital

    1,657       —        —        154,669       —        —        —        —        —        —   

Additional paid-in capital

    1,059,040       —        —        —        —        —        —        —        —        —   

Accumulated deficit

    125,808       —        —        (1,968,291     (277     —        (46     (2,355     (1,615     —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Stockholders’ Equity (Deficit) / Members’ Capital (Deficit)

    1,186,561       —        —        (1,813,622     (277     —        (46     (2,355     (1,615     —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Liabilities and Stockholders’ Equity (Deficit) / Members’ Capital (Deficit)

    (0     —        —        929,272       108       —        (2     1       87       —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

Official MOR Form    Monthly Operating Report About Debtor Entities’ Value, Operations, Profitability and Cash Flows   9


UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

 

In re: Cano Health, Inc., et al.    Case No: 24-10164
Debtor Balance Sheets (continued)    as of February 29, 2024
     $ in thousands

 

 

Case Number   24-10174     24-10175     24-10176     24-10177     24-10178     24-10179     24-10180     24-10181     24-10182     24-10183  
Entity   Comfort Pharmacy
2, LLC
    Cano Medical
Center of West
Florida, LLC
    Cano Occupational
Health, LLC
    CH Dental
Administrative
Services LLC
    American Choice
Healthcare, LLC
    Physicians Partners
Group Puerto Rico,
LLC (FL)
    DGM MSO, LLC     Cano PCP
Wound
Care, LLC
    Cano Research LLC     Cano Personal
Behavior LLC
 

Assets

                   

Current assets:

                   

Cash, cash equivalents and restricted cash

    253       —        —        —        35,700       —        101       —        —        —   

Accounts receivable, net of unpaid service provider costs

    1,086       —        —        —        6,603       —        (21,006     —        —        —   

Prepaid expenses and other current assets

    (54     —        —        —        473       —        2       —        —        —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total current assets

    1,285       —        —        —        42,776       —        (20,903     —        —        —   

Property and equipment, net

    —        —        —        —        21       —        —        —        —        —   

Operating lease right of use assets

    —        —        —        —        —        —        —        —        —        —   

Goodwill

    —        —        —        —        —        —        —        —        —        —   

Payor relationships, net

    —        —        —        —        —        —        —        —        —        —   

Other intangibles, net

    —        —        —        —        —        —        —        —        —        —   

Other assets

    —        —        —        —        —        —        —        —        —        —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Assets

    1,285       —        —        —        42,797       —        (20,903     —        —        —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Liabilities and stockholder’s equity

                   

Current liabilities:

                   

Accounts payable and accrued expenses

    439       —        —        —        11,304       —        1,157       —        —        —   

Current portion of notes payable

    —        —        —        —        —        —        —        —        —        —   

Current portion of finance lease liabilities

    —        —        —        —        —        —        —        —        —        —   

Current portion due to seller

    —        —        —        —        —        —        —        —        —        —   

Current portion of operating lease liabilities

    (21     —        —        —        —        —        —        —        —        —   

Other current liabilities

    —        —        —        —        1,742       —        —        —        —        —   

Intercompany

    (2,159     —        —        —        35,772       —        (28,261     —        —        —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total current liabilities

    (1,741     —        —        —        48,818       —        (27,104     —        —        —   

Notes payable, net of current portion and debt issuance costs

    —        —        —        —        —        —        —        —        —        —   

Long term portion of operating lease liabilities

    —        —        —        —        —        —        —        —        —        —   

Due to seller, net of current portion

    —        —        —        —        —        —        —        —        —        —   

Long term portion of finance lease liabilities

    —        —        —        —        —        —        —        —        —        —   

Contingent considerations, net of current portion

    —        —        —        —        —        —        —        —        —        —   

Other liabilities

    —        —        —        —        —        —        —        —        —        —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

    (1,741     —        —        —        48,818       —        (27,104     —        —        —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Stockholder’s Equity/Members’ Capital

                   

Shares of Class A common stock $0.0001 par value

    —        —        —        —        —        —        —        —        —        —   

Shares of Class B common stock $0.0001 par value

    —        —        —        —        —        —        —        —        —        —   

Members’ capital

    —        —        —        —        —        —        —        —        —        —   

Additional paid-in capital

    —        —        —        —        —        —        —        —        —        —   

Accumulated deficit

    3,026       —        —        —        (6,021     —        6,201       —        —        —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Stockholders’ Equity (Deficit) / Members’ Capital (Deficit)

    3,026       —        —        —        (6,021     —        6,201       —        —        —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Liabilities and Stockholders’ Equity (Deficit) / Members’ Capital (Deficit)

    1,285       —        —        —        42,797       —        (20,903     —        —        —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

Official MOR Form    Monthly Operating Report About Debtor Entities’ Value, Operations, Profitability and Cash Flows   10


UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

 

In re: Cano Health, Inc., et al.    Case No: 24-10164
Debtor Balance Sheets (continued)    as of February 29, 2024
   $ in thousands

 

 

Case Number   24-10184     24-10185     24-10186     24-10187     24-10188     24-10189     24-10190     24-10191     24-10192     24-10193  
Entity   Cano PCP MSO,
LLC
    Physicians Partners
Group Puerto Rico,
LLC (PR)
    Cano HP MSO,
LLC
    Cano PCP, LLC     Orange Healthcare
Administration,
LLC
    ACH Management
Services, LLC
    Physicians Partners
Group of FL, LLC
    Cano Behavior
Health LLC
    PPG Puerto Rico
Blocker, Inc.
    Orange Care Group
South Florida
Management
Services
Organization, LLC
 

Assets

                   

Current assets:

                   

Cash, cash equivalents and restricted cash

    —        48       —        —        —        —        —        —        —        —   

Accounts receivable, net of unpaid service provider costs

    —        (536     17,888       —        —        —        (2,807     —        —        —   

Prepaid expenses and other current assets

    19       1,737       10       —        —        —        —        —        —        —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total current assets

    19       1,248       17,898       —        —        —        (2,807     —        —        —   

Property and equipment, net

    —        67       —        —        —        —        —        —        —        —   

Operating lease right of use assets

    —        (1     —        —        —        —        —        —        —        —   

Goodwill

    —        —        —        —        —        —        —        —        —        —   

Payor relationships, net

    —        —        —        —        —        —        —        —        —        —   

Other intangibles, net

    —        —        —        —        —        —        —        —        —        —   

Other assets

    —        7       —        —        —        —        —        —        —        —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Assets

    19       1,322       17,898       —        —        —        (2,807     —        —        —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Liabilities and stockholder’s equity

                   

Current liabilities:

                   

Accounts payable and accrued expenses

    0       (46     4,992       —        —        —        1,709       —        —        —   

Current portion of notes payable

    —        —        —        —        —        —        —        —        —        —   

Current portion of finance lease liabilities

    —        —        —        —        —        —        —        —        —        —   

Current portion due to seller

    —        —        —        —        —        —        —        —        —        —   

Current portion of operating lease liabilities

    —        (5     —        —        —        —        —        —        —        —   

Other current liabilities

    —        142       —        —        —        —        —        —        —        —   

Intercompany

    112       6,918       (7,616     —        —        —        (791     —        6       —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total current liabilities

    112       7,010       (2,624     —        —        —        918       —        6       —   

Notes payable, net of current portion and debt issuance costs

    —        —        —        —        —        —        —        —        —        —   

Long term portion of operating lease liabilities

    —        (1     —        —        —        —        —        —        —        —   

Due to seller, net of current portion

    —        —        —        —        —        —        —        —        —        —   

Long term portion of finance lease liabilities

    —        —        —        —        —        —        —        —        —        —   

Contingent considerations, net of current portion

    —        —        —        —        —        —        —        —        —        —   

Other liabilities

    —        9       —        —        —        —        —        —        —        —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

    112       7,017       (2,624     —        —        —        918       —        6       —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Stockholder’s Equity/Members’ Capital

                   

Shares of Class A common stock $0.0001 par value

    —        —        —        —        —        —        —        —        —        —   

Shares of Class B common stock $0.0001 par value

    —        —        —        —        —        —        —        —        —        —   

Members’ capital

    —        —        —        —        —        —        —        —        —        —   

Additional paid-in capital

    —        —        —        —        —        —        —        —        —        —   

Accumulated deficit

    (93     (5,695     20,522       —        —        —        (3,724     —        (6     —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Stockholders’ Equity (Deficit) / Members’ Capital (Deficit)

    (93     (5,695     20,522       —        —        —        (3,724     —        (6     —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Liabilities and Stockholders’ Equity (Deficit) / Members’ Capital (Deficit)

    19       1,322       17,898       —        —        —        (2,807     —        —        —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

Official MOR Form    Monthly Operating Report About Debtor Entities’ Value, Operations, Profitability and Cash Flows   11


UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

 

In re: Cano Health, Inc., et al.    Case No: 24-10164
Debtor Balance Sheets (continued)    as of February 29, 2024
   $ in thousands

 

 

Case Number   24-10194     24-10195     24-10196     24-10197     24-10198     24-10199     24-10200     24-10201     24-10202     24-10203  
Entity   Cano Belen, LLC     Cano Health
Illinois Network,
LLC
    Orange
Accountable Care
Organization of
South Florida
LLC
    Cano Health New
Mexico LLC
    Cano Pharmacy,
LLC
    Orange
Accountable Care
Organization,
LLC
    IFB Pharmacy,
LLC
    American Choice
Commercial
ACO, LLC
    Belen Pharmacy
Group, LLC
    Orange Care
IPA of New
York, LLC
 

Assets

                   

Current assets:

                   

Cash, cash equivalents and restricted cash

    —        —        —        8       1,017       —        9       —        0       —   

Accounts receivable, net of unpaid service provider costs

    —        —        —        (251     1,702       —        114       —        229       —   

Prepaid expenses and other current assets

    —        —        —        12       753       —        0       —        (15     —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total current assets

    —        —        —        (232     3,473       —        123       —        214       —   

Property and equipment, net

    —        —        —        9       111       —        9       —        3       —   

Operating lease right of use assets

    —        —        —        15       (169     —        —        —        (35     —   

Goodwill

    —        —        —        —        —        —        —        —        —        —   

Payor relationships, net

    —        —        —        —        —        —        —        —        —        —   

Other intangibles, net

    —        —        —        —        —        —        —        —        —        —   

Other assets

    —        —        —        —        —        —        —        —        —        —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Assets

    —        —        —        (208     3,414       —        132       —        181       —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Liabilities and stockholder’s equity

                   

Current liabilities:

                   

Accounts payable and accrued expenses

    —        —        —        23       1,259       —        0       —        0       —   

Current portion of notes payable

    —        —        —        —        —        —        —        —        —        —   

Current portion of finance lease liabilities

    —        —        —        31       —        —        —        —        —        —   

Current portion due to seller

    —        —        —        —        —        —        —        —        —        —   

Current portion of operating lease liabilities

    —        —        —        354       13       —        —        —        (26     —   

Other current liabilities

    —        —        —        —        —        —        —        —        —        —   

Intercompany

    —        —        —        13,106       10,451       —        1,098       —        1,387       —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total current liabilities

    —        —        —        13,514       11,722       —        1,098       —        1,362       —   

Notes payable, net of current portion and debt issuance costs

    —        —        —        —        —        —        —        —        —        —   

Long term portion of operating lease liabilities

    —        —        —        2,263       (194     —        —        —        (12     —   

Due to seller, net of current portion

    —        —        —        —        —        —        —        —        —        —   

Long term portion of finance lease liabilities

    —        —        —        49       —        —        —        —        —        —   

Contingent considerations, net of current portion

    —        —        —        —        —        —        —        —        —        —   

Other liabilities

    —        —        —        —        (39     —        —        —        —        —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

    —        —        —        15,826       11,489       —        1,098       —        1,350       —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Stockholder’s Equity/Members’ Capital

                   

Shares of Class A common stock $0.0001 par value

    —        —        —        —        —        —        —        —        —        —   

Shares of Class B common stock $0.0001 par value

    —        —        —        —        —        —        —        —        —        —   

Members’ capital

    —        —        —        —        —        —        —        —        —        —   

Additional paid-in capital

    —        —        —        —        —        —        —        —        —        —   

Accumulated deficit

    —        —        —        (16,034     (8,075     —        (966     —        (1,169     —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Stockholders’ Equity (Deficit) / Members’ Capital (Deficit)

    —        —        —        (16,034     (8,075     —        (966     —        (1,169     —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Liabilities and Stockholders’ Equity (Deficit) / Members’ Capital (Deficit)

    —        —        —        (208     3,414       —        132       —        181       —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

Official MOR Form    Monthly Operating Report About Debtor Entities’ Value, Operations, Profitability and Cash Flows   12


UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

 

In re: Cano Health, Inc., et al.    Case No: 24-10164
Debtor Balance Sheets (continued)    as of February 29, 2024
   $ in thousands

 

 

Case Number   24-10204     24-10205     24-10206     24-10207     24-10208     24-10209     24-10210     24-10211  
Entity   University Health
Care Pharmacy,
LLC
    Orange Care
IPA of
New Jersey, LLC
    Cano Health
New York,
IPA, LLC
    Total Care
ACO, LLC
    Clinical Research
of Hollywood,
P.A.
    Cano Health
CA1, LLC
    Cano Health
Illinois 1
MSO, LLC
    Solis Network
Solutions,
LLC
 

Assets

               

Current assets:

               

Cash, cash equivalents and restricted cash

    6       —        —        —        —        —        —        —   

Accounts receivable, net of unpaid service provider costs

    1,368       —        —        —        —        —        —        —   

Prepaid expenses and other current assets

    183       —        —        —        —        —        —        —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total current assets

    1,556       —        —        —        —        —        —        —   

Property and equipment, net

    —        —        —        —        —        —        —        —   

Operating lease right of use assets

    (165     —        —        —        —        —        —        —   

Goodwill

    —        —        —        —        —        —        —        —   

Payor relationships, net

    —        —        —        —        —        —        —        —   

Other intangibles, net

    —        —        —        —        —        —        —        —   

Other assets

    —        —        —        —        —        —        —        —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Assets

    1,391       —        —        —        —        —        —        —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Liabilities and stockholder’s equity

               

Current liabilities:

               

Accounts payable and accrued expenses

    39       —        —        —        —        —        —        —   

Current portion of notes payable

    —        —        —        —        —        —        —        —   

Current portion of finance lease liabilities

    —        —        —        —        —        —        —        —   

Current portion due to seller

    —        —        —        —        —        —        —        —   

Current portion of operating lease liabilities

    15       —        —        —        —        —        —        —   

Other current liabilities

    —        —        —        —        —        —        —        —   

Intercompany

    2,517       —        —        —        —        —        —        —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total current liabilities

    2,572       —        —        —        —        —        —        —   

Notes payable, net of current portion and debt issuance costs

    —        —        —        —        —        —        —        —   

Long term portion of operating lease liabilities

    (70     —        —        —        —        —        —        —   

Due to seller, net of current portion

    —        —        —        —        —        —        —        —   

Long term portion of finance lease liabilities

    —        —        —        —        —        —        —        —   

Contingent considerations, net of current portion

    —        —        —        —        —        —        —        —   

Other liabilities

    —        —        —        —        —        —        —        —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

    2,502       —        —        —        —        —        —        —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Stockholder’s Equity/Members’ Capital

               

Shares of Class A common stock $0.0001 par value

    —        —        —        —        —        —        —        —   

Shares of Class B common stock $0.0001 par value

    —        —        —        —        —        —        —        —   

Members’ capital

    —        —        —        —        —        —        —        —   

Additional paid-in capital

    —        —        —        —        —        —        —        —   

Accumulated deficit

    (1,111     —        —        —        —        —        —        —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Stockholders’ Equity (Deficit) / Members’ Capital (Deficit)

    (1,111     —        —        —        —        —        —        —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Liabilities and Stockholders’ Equity (Deficit) / Members’ Capital (Deficit)

    1,391       —        —        —        —        —        —        —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

Official MOR Form    Monthly Operating Report About Debtor Entities’ Value, Operations, Profitability and Cash Flows   13


UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

 

In re: Cano Health, Inc., et al.    Case No: 24-10164
Debtor Statement of Income (Loss)    Reporting Period: February 1 – February 29, 2024
     $ in thousands

 

 

Case Number

  24-10164     24-10165     24-10166     24-10167     24-10168     24-10169     24-10170     24-10171     24-10172     24-10173  
    Cano Health, Inc.     Primary Care (ITC)
Intermediate
Holdings, LLC
    Complete Medical
Billing and
Coding Services,
LLC
    Cano Health,
LLC
    Cano Health of
Puerto Rico
LLC
    CHPR MSO
LLC
    Cano Health
of
Florida, LLC
    Cano Health
CA1 MSO,
LLC
    Physicians Partners
Group Merger,
LLC
    Cano Health
Nevada
Network,
LLC
 

Revenues

                   

Capitated revenue

    —        —        —        86,227       —        —        —        —        —        —   

Fee-for-service and other revenue

    —        —        —        1,433       —        —        —        —        —        —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Revenues

    —        —        —        87,660       —        —        —        —        —        —   

Operating Expenses

                   

Third-party medical costs

    —        —        —        80,194       —        —        —        —        —        —   

Direct patient expense

    —        —        —        7,442       —        —        —        —        —        —   

Selling, general and administrative expense

    701       —        —        25,321       38       —        —        1,042       —        —   

Depreciation and amortization expense

    —        —        —        6,100       —        —        —        —        —        —   

Transaction costs and other

    —        —        —        438       —        —        —        —        —        —   

Fair value adjustment—contingent considerations

    —        —        —        —        —        —        —        —        —        —   

Credit loss on other assets

    —        —        —        —        —        —        —        —        —        —   

Goodwill impairment loss

    —        —        —        —        —        —        —        —        —        —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Operating Expenses

    701       —        —        119,495       38       —        —        1,042       —        —   

Income (loss) from Operations

    (701     —        —        (31,835     (38     —        —        (1,042     —        —   

Other (Expense) Income

                   

Interest expense

    —        —        —        (1,499     —        —        —        —        —        —   

Interest income

    1       —        —        12       —        —        —        —        —        —   

Loss on extinguishment of debt

    —        —        —        —        —        —        —        —        —        —   

Change in fair value of warrant liabilities

    —        —        —        —        —        —        —        —        —        —   

Other expenses

    —        —        —        (1,209     —        —        —        (52     —        —   

Reorganization expense

    —        —        —        (20,892     —        —        —        —        —        —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Other Expenses, Net

    1       —        —        (23,588     —        —        —        (52     —        —   

Income tax expense (benefit)

    —        —        —        —        —        —        —        —        —        —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Income (loss)

    (699     —        —        (55,423     (38     —        —        (1,094     —        —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

Official MOR Form    Monthly Operating Report About Debtor Entities’ Value, Operations, Profitability and Cash Flows   14


UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

 

In re: Cano Health, Inc., et al.

Debtor Statement of Income (Loss) (continued)

 

Case No: 24-10164

Reporting Period: February 1 – February 29, 2024

$ in thousands

 

 

 

Case Number      24-10174       24-10175        24-10176        24-10177        24-10178        24-10179        24-10180       24-10181        24-10182        24-10183  
    
Comfort Pharmacy
2, LLC
 
 
   

Cano Medical
Center of West
Florida, LLC
 
 
 
    
Cano Occupational
Health, LLC
 
 
    

CH Dental
Administrative
Services LLC
 
 
 
    
American Choice
Healthcare, LLC
 
 
    

Physicians Partners
Group Puerto Rico,
LLC (FL)
 
 
 
     DGM MSO, LLC      
Cano PCP Wound
Care, LLC
 
 
     Cano Research LLC       
Cano Personal
Behavior LLC
 
 

Revenues

                           

Capitated revenue

     —        —         —         —         92,969        —         8,735       —         —         —   

Fee-for-service and other revenue

     827       —         —         —         —         —         1       —         —         —   
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total Revenues

     827       —         —         —         92,969        —         8,736       —         —         —   

Operating Expenses

                           

Third-party medical costs

     —        —         —         —         86,408        —         8,747       —         —         —   

Direct patient expense

     887       —         —         —         1,595        —         167       —         —         —   

Selling, general and administrative expense

     1       —         —         —         115        —         0       —         —         —   

Depreciation and amortization expense

     —        —         —         —         1        —         —        —         —         —   

Transaction costs and other

     —        —         —         —         —         —         —        —         —         —   

Fair value adjustment - contingent considerations

     —        —         —         —         —         —         —        —         —         —   

Credit loss on other assets

     —        —         —         —         —         —         —        —         —         —   

Goodwill impairment loss

     —        —         —         —         —         —         —        —         —         —   
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total Operating Expenses

     889       —         —         —         88,119        —         8,914       —         —         —   

Income (loss) from Operations

     (62     —         —         —         4,850        —         (178     —         —         —   

Other (Expense) Income

                           

Interest expense

     —        —         —         —         —         —         —        —         —         —   

Interest income

     —        —         —         —         —         —         —        —         —         —   

Loss on extinguishment of debt

     —        —         —         —         —         —         —        —         —         —   

Change in fair value of warrant liabilities

     —        —         —         —         —         —         —        —         —         —   
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Other expenses

     —        —         —         —         6        —         —        —         —         —   

Reorganization expense

     —        —         —         —         —         —         —        —         —         —   

Total Other Expenses, Net

     —        —         —         —         6        —         —        —         —         —   

Income tax expense (benefit)

     —        —         —         —         —         —         —        —         —         —   
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Net Income (loss)

     (62     —         —         —         4,856        —         (178     —         —         —   
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

 

Official MOR Form    Monthly Operating Report About Debtor Entities’ Value, Operations, Profitability and Cash Flows   15


UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

 

In re: Cano Health, Inc., et al.

Debtor Statement of Income (Loss) (continued)

 

Case No: 24-10164

Reporting Period: February 1 – February 29, 2024

$ in thousands

 

 

Case Number    24-10184      24-10185     24-10186      24-10187      24-10188      24-10189      24-10190     24-10191      24-10192      24-10193  
     Cano PCP MSO, LLC      Physicians Partners
Group Puerto Rico,
LLC (PR)
    Cano HP MSO, LLC      Cano PCP, LLC      Orange Healthcare
Administration, LLC
     ACH Management
Services, LLC
     Physicians Partners
Group of FL, LLC
    Cano Behavior
Health LLC
     PPG Puerto Rico
Blocker, Inc.
     Orange Care Group
South Florida
Management
Services
Organization, LLC
 

Revenues

                           

Capitated revenue

     —         —        25,536        —         —         —         2,709       —         —         —   

Fee-for-service and other revenue

     —         —        —         —         —         —         —        —         —         —   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total Revenues

     —         —        25,536        —         —         —         2,709       —         —         —   

Operating Expenses

                           

Third-party medical costs

     —         (548     21,396        —         —         —         2,986       —         —         —   

Direct patient expense

     —         —        597        —         —         —         9       —         —         —   

Selling, general and administrative expense

     —         0       81        —         —         —         —        —         —         —   

Depreciation and amortization expense

     —         1       —         —         —         —         —        —         —         —   

Transaction costs and other

     —         —        —         —         —         —         —        —         —         —   

Fair value adjustment - contingent considerations

     —         —        —         —         —         —         —        —         —         —   

Credit loss on other assets

     —         —        —         —         —         —         —        —         —         —   

Goodwill impairment loss

     —         —        —         —         —         —         —        —         —         —   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total Operating Expenses

     —         (546     22,074        —         —         —         2,995       —         —         —   

Income (loss) from Operations

     —         546       3,461        —         —         —         (286     —         —         —   

Other (Expense) Income

                           

Interest expense

     —         —        —         —         —         —         —        —         —         —   

Interest income

     —         —        —         —         —         —         —        —         —         —   

Loss on extinguishment of debt

     —         —        —         —         —         —         —        —         —         —   

Change in fair value of warrant liabilities

     —         —        —         —         —         —         —        —         —         —   

Other expenses

     —         —        —         —         —         —         —        —         —         —   

Reorganization expense

     —         —        —         —         —         —         —        —         —         —   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total Other Expenses, Net

                                                                   

Income tax expense (benefit)

     —         —        —         —         —         —         —        —         —         —   

Net Income (loss)

     —         546       3,461        —         —         —         (286     —         —         —   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

 

Official MOR Form    Monthly Operating Report About Debtor Entities’ Value, Operations, Profitability and Cash Flows   16


UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

 

In re: Cano Health, Inc., et al.

Debtor Statement of Income (Loss) (continued)

 

Case No: 24-10164

Reporting Period: February 1 – February 29, 2024

$ in thousands

 

 

Case Number   24-10194     24-10195     24-10196     24-10197     24-10198     24-10199     24-10200     24-10201     24-10202     24-10203  
    Cano Belen, LLC     Cano Health Illinois
Network, LLC
    Orange Accountable
Care Organization of
South Florida LLC
    Cano Health New
Mexico LLC
    Cano Pharmacy, LLC     Orange Accountable
Care Organization,
LLC
    IFB Pharmacy, LLC     American Choice
Commercial ACO,
LLC
    Belen Pharmacy
Group, LLC
    Orange Care IPA of
New York, LLC
 

Revenues

                   

Capitated revenue

    —        —        —        —        —        —        —        —        —        —   

Fee-for-service and other revenue

    —        —        —        3       2,095       —        (24     —        (15     —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Revenues

    —        —        —        3       2,095       —        (24     —        (15     —   

Operating Expenses

                   

Third-party medical costs

    —        —        —        63       —        —        —        —        —        —   

Direct patient expense

    —        —        —        0       2,182       —        51       —        (0     —   

Selling, general and administrative expense

    —        —        —        36       153       —        (1     —        23       —   

Depreciation and amortization expense

    —        —        —        0       8       —        0       —        0       —   

Transaction costs and other

    —        —        —        —        —        —        —        —        —        —   

Fair value adjustment - contingent considerations

    —        —        —        —        —        —        —        —        —        —   

Credit loss on other assets

    —        —        —        —        —        —        —        —        —        —   

Goodwill impairment loss

    —        —        —        —        —        —        —        —        —        —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Operating Expenses

    —        —        —        100       2,343       —        50       —        23       —   

Income (loss) from Operations

    —        —        —        (97     (248     —        (74     —        (38     —   

Other (Expense) Income

                   

Interest expense

    —        —        —        —        (0     —        —        —        —        —   

Interest income

    —        —        —        —        —        —        —        —        —        —   

Loss on extinguishment of debt

    —        —        —        —        —        —        —        —        —        —   

Change in fair value of warrant liabilities

    —        —        —        —        —        —        —        —        —        —   

Other expenses

    —        —        —        —        —        —        —        —        —        —   

Reorganization expense

    —        —        —        —        —        —        —        —        —        —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Other Expenses, Net

    —        —        —        —        (0     —        —        —        —        —   

Income tax expense (benefit)

    —        —        —        —        —        —        —        —        —        —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Income (loss)

    —        —        —        (97     (248     —        (74     —        (38     —   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

Official MOR Form    Monthly Operating Report About Debtor Entities’ Value, Operations, Profitability and Cash Flows   17


UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

 

In re: Cano Health, Inc., et al.

Debtor Statement of Income (Loss) (continued)

 

Case No: 24-10164

Reporting Period: February 1 – February 29, 2024

$ in thousands

 

 

Case Number    24-10204      24-10205      24-10206             24-10208      24-10209      24-10210      24-10211  
     University Health      Orange Care IPA of      Cano Health New      24-10207      Clinical Research of      Cano Health CA1,      Cano Health Illinois      Solis Network  
     Care Pharmacy, LLC      New Jersey, LLC      York, IPA, LLC      Total Care ACO, LLC      Hollywood, P.A.      LLC      1 MSO, LLC      Solutions, LLC  

Revenues

                       

Capitated revenue

     —         —         —         —         —         —         —         —   

Fee-for-service and other revenue

     675        —         —         —         —         —         —         —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Revenues

     675        —         —         —         —         —         —         —   

Operating Expenses

                       

Third-party medical costs

     —         —         —         —         —         —         —         —   

Direct patient expense

     579        —         —         —         —         —         —         —   

Selling, general and administrative expense

     36        —         —         —         —         —         —         —   

Depreciation and amortization expense

     —         —         —         —         —         —         —         —   

Transaction costs and other

     —         —         —         —         —         —         —         —   

Fair value adjustment—contingent considerations

     —         —         —         —         —         —         —         —   

Credit loss on other assets

     —         —         —         —         —         —         —         —   

Goodwill impairment loss

     —         —         —         —         —         —         —         —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Operating Expenses

     615        —         —         —         —         —         —         —   

Income (loss) from Operations

     61        —         —         —         —         —         —         —   

Other (Expense) Income

                       

Interest expense

     —         —         —         —         —         —         —         —   

Interest income

     —         —         —         —         —         —         —         —   

Loss on extinguishment of debt

     —         —         —         —         —         —         —         —   

Change in fair value of warrant liabilities

     —         —         —         —         —         —         —         —   

Other expenses

     —         —         —         —         —         —         —         —   

Reorganization expense

     —         —         —         —         —         —         —         —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Other Expenses, Net

                                                       

Income tax expense (benefit)

     —         —         —         —         —         —         —         —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Income (loss)

     61        —         —         —         —         —         —         —   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

Official MOR Form    Monthly Operating Report About Debtor Entities’ Value, Operations, Profitability and Cash Flows   18


UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

 

In re: Cano Health, Inc., et al.

Schedule of Post-Petition Borrowing Activity

 

Case No: 24-10164

Reporting Period: February 4 – February 29, 2024

 

 

The Debtors hereby submit this attestation regarding postpetition borrowing during the period of February 4 through February 29, 2024.

In accordance with the Debtors’ FINAL ORDER PURSUANT TO 11 U.S.C. §§ 105, 361, 362, 363, 364, 507, AND 552 AND FED. R. BANKR. P. 2002, 4001, 6003, 6004, AND 9014 FOR (I) AUTHORITY TO (A) OBTAIN POSTPETITION FINANCING, (B) USE CASH COLLATERAL (C) GRANT LIENS AND PROVIDE SUPERPRIORITY ADMINISTRATIVE EXPENSE STATUS, (D) GRANT ADEQUATE PROTECTION, AND (E) MODIFY THE AUTOMATIC STAY, AND (II) RELATED RELIEF [Docket No. 271], Debtor Cano Health, LLC, initiated the following borrowing during this reporting period, which was deposited to Cano Health, LLC account *7721:

$50,000,000 on February 7, 2024

 

/s/ Eladio Gil     April 3, 2024
Signature of Authorized Individual     Date
Eladio Gil     Chief Financial Officer
Printed Name of Authorized Individual     Title of Authorized Individual

 

 

Official MOR Form    Monthly Operating Report About Debtor Entities’ Value, Operations, Profitability and Cash Flows   19


UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

 

In re: Cano Health, Inc., et al.

Schedule of Payments on Prepetition Debt

  

Case No: 24-10164

Reporting Period: February 4 – February 29, 2024

 

 

All payments made by the Debtors during the Reporting Period (and included in the disbursements reported in this MOR) were authorized under various final orders granted by the Court, which authorized the Debtors’ various motions that were filed following the commencement of the Chapter 11 Cases.

 

/s/ Eladio Gil     April 3, 2024
Signature of Authorized Individual     Date
Eladio Gil     Chief Financial Officer
Printed Name of Authorized Individual     Title of Authorized Individual

 

 

Official MOR Form    Monthly Operating Report About Debtor Entities’ Value, Operations, Profitability and Cash Flows   20


UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

 

In re: Cano Health, Inc., et al.

Schedule of Payments to Insiders

  

Case No: 24-10164

Reporting Period: February 4 – February 29, 2024

 

 

The Debtors hereby submit this attestation regarding payments to insiders during the period of February 4 through February 29, 2024.

With respect to insiders, all cash payments made were on account of ordinary course salaries and authorized travel and expense reimbursements.

No non-cash transfers were made during this reporting period.

 

/s/ Eladio Gil     April 3, 2024
Signature of Authorized Individual     Date
Eladio Gil     Chief Financial Officer
Printed Name of Authorized Individual     Title of Authorized Individual

 

 

Official MOR Form    Monthly Operating Report About Debtor Entities’ Value, Operations, Profitability and Cash Flows   21


UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

 

In re: Cano Health, Inc., et al.

All bank statements and bank reconciliations for the reporting period

  

Case No: 24-10164

Reporting Period: February 4 – February 29, 2024

 

 

The Debtors hereby submit this attestation regarding bank account reconciliations in lieu of providing copies of bank statements, bank reconciliations, and journal entries.

The Debtors’ standard practice is to ensure that bank reconciliations are completed as part of the month end close each reporting period. I attest that each of the Debtors’ bank accounts has been reconciled in accordance with their standard practices.

 

/s/ Eladio Gil     April 3, 2024
Signature of Authorized Individual     Date
Eladio Gil     Chief Financial Officer
Printed Name of Authorized Individual     Title of Authorized Individual

 

 

Official MOR Form    Monthly Operating Report About Debtor Entities’ Value, Operations, Profitability and Cash Flows   22
v3.24.1.u1
Document and Entity Information
Apr. 03, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Apr. 03, 2024
Entity Registrant Name Cano Health, Inc.
Entity File Number 001-39289
Entity Incorporation State Country Code DE
Entity Tax Identification Number 98-1524224
Entity Address Address Line 1 9725 NW 117th Avenue
Entity Address City Or Town Miami
Entity Address State Or Province FL
Entity Address Postal Zip Code 33178
City Area Code 855
Local Phone Number 226-6633
Written Communications false
Soliciting Material false
Pre Commencement Tender Offer false
Pre Commencement Issuer Tender Offer false
Security 12b Title Class A common stock, $0.01 par value per share
Trading Symbol CANOQ
Security Exchange Name NONE
Entity Emerging Growth Company false
Amendment Flag false
Entity Central Index Key 0001800682

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