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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)
May 5, 2022
NantHealth, Inc.
(Exact name of registrant as specified in its charter)
Delaware001-3779227-3019889
(State or other jurisdiction of
incorporation)
(Commission File Number)(IRS Employer
Identification No.)

3000 RDU Drive, Suite 200
Morrisville, North Carolina 27560
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (855) 949-6268

Not Applicable
(Former name or former address, if changed since last report)
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 (see General Instruction A.2. below):
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))

Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.0001 per shareNHNasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §(§230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §(§240.12b-2).

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.   



Item 2.02Results of Operations and Financial Condition.

On May 5, 2022, NantHealth, Inc. publicly disseminated a press release announcing its financial results for the three months ended March 31, 2022. A copy of the press release is furnished as Exhibit 99.1 hereto and incorporated herein by reference.

As provided in General Instruction B.2 to Form 8-K, the information furnished in Item 2.02 and Exhibit 99.1 of this Current Report on Form 8-K shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, and such information shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01
Financial Statements and Exhibits.

(d) Exhibits. The following is furnished as an exhibit to this Current Report on Form 8-K:
Exhibit No.Description
99.1





SIGNATURE
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 hereunto duly authorized.
NantHealth, Inc.
Date:May 5, 2022By:/s/ Bob Petrou
Bob Petrou
Chief Financial Officer


Exhibit 99.1
 nanthealthlogoaa10.jpg
Investor Contact:
Robert Jaffe
rjaffe@rjaffeco.com
424.288.4098

NANTHEALTH REPORTS 2022 FIRST QUARTER FINANCIAL RESULTS

Q1 2022 Financial Highlights:
Total net revenue was $16.4 million
Gross margin was 56% of total revenue
Post Quarter End:
NaviNet Open Won MedTech Breakthrough “Healthcare Insurance Innovation Award.” This is the second year in a row that a NantHealth product has been recognized for this award

Morrisville, NC – May 5, 2022 — NantHealth, Inc. (NASDAQ-GS: NH), a leading provider of enterprise solutions that help businesses transform complex data into actionable insights, today reported financial results for its first quarter ended March 31, 2022.

“We are pleased to start the year with positive momentum, with our 2022 first quarter revenue increasing over the previous quarter,” said Ron Louks, Chief Operating Officer, NantHealth.

“To help drive further growth, we continue to invest in the development of our products and services, including the expansion of our cloud and data analytics capabilities. These investments are delivering results in multiple ways, including the launch of several new applications on our new cloud platform. Eviti Connect expansion continued with Autoimmune Diseases and our NantHealth Partner Portal which added on-demand customer access to interactive reporting. We are also seeing continued interest in our data enrichment services, as well as pilot programs for The OpenNMS Group Inc.’s cloud services.”

Software and Services Q1 Highlights:

Clinical Decision Support (Eviti®):

Signed a multi-year renewal with a leading nonprofit, multi-state health plan serving government sponsored programs. The agreement significantly expands the scope of Eviti Connect for Oncology services provided to the plan, including the addition of full delegation services and evidence-based radiation oncology care

Expanded full delegation capabilities to include radiation oncology services in addition to medical oncology, enabling customers to assign prior authorization decisions to NantHealth

New functionality that allows health plan customers to approve and assign a prior authorization Eviti code to portions of a treatment plan, eliminating the need for complete plan resubmission and speeding up treatment to patients

Payer Engagement (NaviNet®):

Received HITRUST certification, a highly stringent benchmark that ensures NantHealth continues to meet key regulations and industry-defined security requirements. This places NantHealth and NaviNet Open in an elite group of organizations worldwide that have earned this status for information security




In May 2022, won the MedTech Breakthrough “Healthcare Insurance Innovation Award,” recognized for the platform’s innovative ability to break through digital health and technology markets

Enhanced NaviNet Open Authorizations with new processes for automating the collection of additional procedure code modifiers and reducing the need for manual follow-up by the health plan

Network Monitoring and Management (The OpenNMS Group, Inc.):

Released OpenNMS Meridian 2022, the optimized and hardened version of the OpenNMS platform available to annual maintenance subscribers for use in production environments. Meridian 2022 features enhanced security, improved analytics for NetFlow processing, simplified Minion communication and enhanced geolocation with IP addresses

Signed several new professional services agreements with customers using the Horizon and Meridian versions of the OpenNMS platform. This work in collaboration with customers helps to improve the extensibility, reliability, and scalability of the platform for the entire user community

Completed global delivery of 1U hardware appliances, expanding the existing hardware appliance beta program with a large consumer electronics retailer


First Quarter Financial Results: 2022 vs 2021

For the 2022 first quarter:

Total net revenue was $16.4 million compared with $16.2 million.

Gross profit was $9.2 million, or 56% of total net revenue, compared with $9.1 million, or 56% of total net revenue.

Selling, general and administrative (SG&A) expenses increased to $15.0 million from $12.5 million.

Research and development (R&D) expenses increased to $5.7 million from $5.0 million.

Net loss from continuing operations, net of tax, was $16.0 million, or $0.14 per share, compared with $15.4 million, or $0.14 per share.

On a non-GAAP basis, net loss from continuing operations was $12.2 million, or $0.11 per share, compared with $9.6 million, or $0.09 per share.

At March 31, 2022, cash and cash equivalents totaled $16.1 million.

Conference Call Information and Forward-Looking Statements
Later today, the company will host a conference call at 1:30 p.m. PT (4:30 p.m. ET) to review its results of operations for the first quarter ended March 31, 2022. The conference call will be available to interested parties by dialing 800-920-5526 from the U.S. or Canada, or 212-231-2907 from international locations. The call will be broadcast via the Internet at www.nanthealth.com. Listeners are encouraged to visit the website at least 10 minutes prior to the start of the scheduled presentation to register, download and install any necessary audio software. A playback of the call will be archived and accessible on the same website for at least three months.

Discussion during the conference call may include forward-looking statements regarding topics such as the company’s financial status and performance, regulatory and operational developments, and other comments the company may make about its future plans or prospects in response to questions from participants on the conference call.




Use of Non-GAAP Financial Measures
This news release contains references to Non-GAAP financial measures, including adjusted net loss and adjusted net loss per share, which are financial measures that are not prepared in conformity with United States generally accepted accounting principles (U.S. GAAP). The Company’s management believes that the presentation of Non-GAAP financial measures provides useful supplementary information regarding operational performance, because it enhances an investor’s overall understanding of the financial results for the Company’s core business. Additionally, it provides a basis for the comparison of the financial results for the Company’s core business between current, past and future periods. Other companies may define these measures in different ways. Non-GAAP financial measures should be considered only as a supplement to, and not as a substitute for or as a superior measure to, financial measures prepared in accordance with U.S. GAAP. Non-GAAP per share numbers are calculated based on one class of common stock and do not incorporate the effects, if any, of using the two-class method.

About NantHealth, Inc.
NantHealth, a member of the NantWorks ecosystem of companies, provides enterprise solutions that help businesses transform complex data into actionable insights. By offering efficient ways to move, interpret and visualize complex and highly sensitive information, NantHealth enables customers in healthcare, life sciences, logistics, telecommunications and other industries to automate, understand and act on data while keeping it secure and scalable. NantHealth’s product portfolio comprises the latest technology in payer/provider collaboration platforms for real-time coverage decision support (Eviti and NaviNet), and data solutions that provide multi-data analysis, reporting and professional services offerings (Quadris). The OpenNMS Group, Inc., a NantHealth subsidiary, helps businesses monitor and manage network health and performance. For more information, visit nanthealth.com, follow us on Twitter, Facebook, LinkedIn and YouTube and subscribe to our blog.

This news release contains certain statements of a forward-looking nature relating to future events or future business performance. Forward-looking statements can be identified by the words “expects,” “anticipates,” “believes,” “intends,” “estimates,” “plans,” “will,” “outlook” and similar expressions. Forward-looking statements are based on management’s current plans, estimates, assumptions and projections, and speak only as of the date they are made. Risks and uncertainties include, but are not limited to: our ability to successfully integrate a complex learning system to address a wide range of healthcare issues; our ability to successfully amass the requisite data to achieve maximum network effects; appropriately allocating financial and human resources across a broad array of product and service offerings; raising additional capital as necessary to fund our operations; our ability to grow the market for our software and data solutions; successfully enhancing our software and data solutions to achieve market acceptance and keep pace with technological developments; customer concentration; competition; security breaches; bandwidth limitations; our ability to integrate The OpenNMS Group, Inc. into our operations; our use and distribution of open source software; our ability to obtain necessary regulatory approvals, certifications and licenses; dependence upon senior management; the need to comply with and meet applicable laws and regulations; unexpected adverse events; and anticipated cost savings. We undertake no obligation to update any forward-looking statement in light of new information or future events, except as otherwise required by law. Forward-looking statements involve inherent risks and uncertainties, most of which are difficult to predict and are generally beyond our control. Actual results or outcomes may differ materially from those implied by the forward-looking statements as a result of the impact of a number of factors, many of which are discussed in more detail in our reports filed with the Securities and Exchange Commission.

FINANCIAL TABLES FOLLOW



NantHealth, Inc.
Consolidated Balance Sheets
(Dollars in thousands)
March 31,
2022
December 31,
2021
(Unaudited)
Assets
Current assets
Cash and cash equivalents$16,078 $29,084 
Accounts receivable, net5,025 5,810 
Related party receivables, net505 506 
Prepaid expenses and other current assets4,518 4,010 
Total current assets26,126 39,410 
Property, plant, and equipment, net11,956 12,366 
Goodwill98,333 98,333 
Intangible assets, net36,807 39,039 
Related party receivable, net of current1,012 1,012 
Operating lease right-of-use assets5,673 6,048 
Other assets1,494 1,620 
Total assets$181,401 $197,828 
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable$5,288 $3,204 
Accrued and other current liabilities12,712 16,358 
Deferred revenue2,704 2,440 
Related party payables, net4,302 5,161 
Notes payable— 782 
Total current liabilities25,006 27,945 
Deferred revenue, net of current1,793 2,024 
Related party liabilities40,136 38,278 
Related party promissory note112,666 112,666 
Related party convertible note, net62,285 62,268 
Convertible notes, net74,623 74,603 
Deferred income taxes, net1,680 1,775 
Operating lease liabilities5,711 6,248 
Other liabilities34,098 34,013 
Total liabilities357,998 359,820 
Stockholders' deficit
Common stock, $0.0001 par value per share, 750,000,000 shares authorized; 115,550,244 and 115,505,244 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively12 12 
Additional paid-in capital892,546 891,105 
Accumulated deficit(1,068,847)(1,052,897)
Accumulated other comprehensive loss(308)(212)
Total stockholders' deficit$(176,597)$(161,992)
Total liabilities and stockholders' deficit$181,401 $197,828 



NantHealth, Inc.
Consolidated Statements of Operations
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended
March 31,
20222021
Revenue
Software-as-a-service related$15,771 $15,757 
Maintenance464 383 
Professional services138 27 
Total software-related revenue16,373 16,167 
Other— 
Total net revenue16,373 16,170 
Cost of Revenue
Software-as-a-service related5,563 5,535 
Maintenance369 207 
Professional services— 
Amortization of developed technologies1,247 1,247 
Total software-related cost of revenue7,179 6,996 
Other— 47 
Total cost of revenue7,179 7,043 
Gross Profit9,194 9,127 
Operating Expenses
Selling, general and administrative14,980 12,502 
Research and development5,715 5,013 
Amortization of acquisition-related assets
985 985 
Total operating expenses21,680 18,500 
Loss from operations(12,486)(9,373)
Interest expense, net(3,450)(3,568)
Other income (expense), net(2,570)
Loss from continuing operations before income taxes(15,930)(15,511)
Provision for (benefit from) income taxes20 (8)
Net loss from continuing operations(15,950)(15,503)
Income from discontinued operations, net of tax attributable to NantHealth— 
Net loss(15,950)(15,499)
Net loss attributable to noncontrolling interests— (91)
Net loss attributable to NantHealth$(15,950)$(15,408)
Basic and diluted net loss per share attributable to NantHealth:
Total net loss per share - common stock$(0.14)$(0.14)
Weighted average shares outstanding
Basic and diluted - common stock115,521,243 111,319,061 




NantHealth, Inc.
Non-GAAP Net Loss from Continuing Operations Attributable to NantHealth and
Non-GAAP Net Loss Per Share from Continuing Operations Attributable to NantHealth
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended
March 31,
20222021
Net loss from continuing operations attributable to NantHealth$(15,950)$(15,412)
Adjustments to GAAP net loss from continuing operations attributable to NantHealth:
Stock-based compensation expense from continuing operations1,390 883 
Change in fair value of derivatives liability— (4)
Change in fair value of Bookings Commitment94 2,463 
Noncash interest expense related to convertible notes37 323 
Intangible amortization from continuing operations2,232 2,212 
Tax benefit resulting from certain noncash tax items(40)(43)
Total adjustments to GAAP net loss from continuing operations attributable to NantHealth3,713 5,834 
Net loss from continuing operations attributable to NantHealth - Non-GAAP$(12,237)$(9,578)
Weighted average basis common shares outstanding115,521,243 111,319,061 
Net loss per common share from continuing operations attributable to NantHealth - Non-GAAP$(0.11)$(0.09)

Reconciliation of Net Loss per Common Share from Continuing Operations Attributable to NantHealth
to Net Loss per Common Share from Continuing Operations Attributable to NantHealth - Non-GAAP
(Unaudited)
Three Months Ended
March 31,
20222021
Net loss per common share from continuing operations attributable to NantHealth$(0.14)$(0.14)
Adjustments to GAAP net loss per common share from continuing operations attributable to NantHealth:
Stock-based compensation expense from continuing operations0.01 0.01 
Change in fair value of derivatives liability— — 
Change in fair value of Bookings Commitment— 0.02 
Noncash interest expense related to convertible notes— — 
Intangible amortization from continuing operations0.02 0.02 
Tax benefit resulting from certain noncash tax items— — 
Total adjustments to GAAP net loss per common share from continuing operations attributable to NantHealth0.03 0.05 
Net loss per common share from continuing operations attributable to NantHealth - Non-GAAP$(0.11)$(0.09)