Quarterly report pursuant to Section 13 or 15(d)

Assets Held for Sale

v3.23.1
Assets Held for Sale
 3 Months Ended
Mar. 31, 2023
Discontinued Operations and Disposal Groups [Abstract]  
Assets Held for Sale
3.    Assets Held for Sale
2022 Disposal Group Held for Sale

During the fourth quarter of 2022, the IPA reporting unit was classified as held for sale in the Consolidated Balance Sheet within our 2022 Form 10-K as of December 31, 2022. The reporting unit continues to be classified as held for sale for the reporting period ended March 31, 2023. Management made certain judgements when assessing if this sale qualified for the presentation and disclosure requirements of a discontinued operation as defined under ASC 205, Presentation of Financial Statements, and concluded that the sale is not a strategic shift and therefore is not considered a discontinued operation. The Group continues to explore the sale of the IPA Business in 2023. Accordingly, the assets and liabilities of the IPA Business
continued to be classified within the current section of the Unaudited Condensed Consolidated Balance Sheet as of March 31, 2023.

The following presents the major classes of assets and liabilities for the IPA reporting unit held for sale:

As of March 31, 2023
As of December 31, 2022
(in thousands) $ $
Cash and cash equivalents 52,131  60,745 
Prepayments and contract assets 413  396 
Right of use assets - Non-current 1,277  1,319 
Trade and other receivables 7,371  9,529 
Property, plant and equipment 201  221 
Goodwill 32,444  32,444 
Other intangible assets 14,960  14,960 
Assets held for sale 108,797  119,614 
Trade and other payables 10,241  8,493 
Accruals and other liabilities 3,071  3,479 
Claims payable 45,317  41,650 
Lease liabilities - Non-current 1,470  1,374 
Premium Deficiency Reserve - Current 10,252  14,736 
Liabilities held for sale 70,351  69,732 

The IPA Business had the following pre-tax losses for each three months ended March 31:

(in thousands)
IPA Business Net loss from operations before income taxes $
2023 (7,989)
2022 (443)
4. Disposals

2023 Disposal

On March 29, 2023, the Company entered into a Stock Purchase Agreement (“SPA”) with an unrelated third party (the “Buyer”) for the sale of the reporting unit higi SH Holdings, Inc. (“Higi”), which was classified as held for sale in the Company’s Consolidated Balance Sheets as of December 31, 2022 included in our 2022 Form 10-K. As a result of the sale, which closed on March 29, 2023, the entire issued share capital of Higi was transferred to the Buyer for $0.8 million of cash consideration, of which $0.5 million was received on execution of the SPA and $0.3 million is to be paid 90 days after the closing, resulting in the recognition of a Loss on sale of subsidiary of $0.6 million in the Unaudited Condensed Statements of Operations and Other Comprehensive Loss for the three months ended March 31, 2023.


Effect of disposal:


As of March 29, 2023
(in thousands)
$
Cash and cash equivalents (158)
Prepayments and contract assets (996)
Right of use assets - Non-current (1,466)
Trade and other receivables (3,461)
Accruals and other liabilities 2,476 
Contract liabilities – Current 686 
Lease liabilities - Current 190 
Lease liabilities - Non-current 1,317 
Net assets and liabilities derecognized (1,412)
Consideration received 766 
Loss on disposal (646)