(1) General
Information
AdaptHealth Corp. and subsidiaries (AdaptHealth or the Company),
f/k/a DFB Healthcare Acquisitions Corp. (DFB), is a national leader
in providing patient-centered, healthcare-at-home solutions
including home medical equipment, medical supplies, and related
services. AdaptHealth focuses primarily on providing (i) sleep
therapy equipment, supplies and related services (including CPAP
and bi PAP services) to individuals suffering from obstructive
sleep apnea (OSA), (ii) medical devices and supplies to patients
for the treatment of diabetes (including continuous glucose
monitors (CGM) and insulin pumps), (iii) home medical equipment
(HME) to patients discharged from acute care and other facilities,
(iv) oxygen and related chronic therapy services in the home, and
(v) other HME medical devices and supplies on behalf of chronically
ill patients with wound care, urological, incontinence, ostomy and
nutritional supply needs. AdaptHealth services beneficiaries of
Medicare, Medicaid and commercial payors.
On July 8, 2019, AdaptHealth Holdings LLC (AdaptHealth Holdings)
entered into an Agreement and Plan of Merger (the Merger
Agreement), as amended on October 15, 2019, with DFB, pursuant to
which AdaptHealth Holdings combined with DFB (the Business
Combination). The Business Combination closed on November 8,
2019.
Unless the context otherwise requires, “the Company”, “we,” “us,”
and “our” refer, for periods prior to the closing of the Business
Combination, to AdaptHealth Holdings and its subsidiaries and, for
periods upon or after the closing of the Business Combination, to
AdaptHealth Corp. and its subsidiaries, including AdaptHealth
Holdings and its subsidiaries.
The consolidated interim financial statements are unaudited, but
reflect all normal recurring adjustments that are, in the opinion
of management, necessary to fairly present the information set
forth herein. The interim consolidated financial statements should
be read in conjunction with the audited consolidated financial
statements and related notes included in the Company’s Annual
Report on Form 10-K/A for the year ended December 31, 2020. Interim
results are not necessarily indicative of the results for a full
year.
There have been no material changes in the Company’s significant
accounting policies as compared to the significant accounting
policies described in the Company’s Annual Report on Form 10-K/A
for the year ended December 31, 2020.
(a) Basis
of Presentation
The
consolidated interim financial statements of the Company have been
prepared in accordance with accounting principles generally
accepted in the United States of America (U.S. GAAP). In the
opinion of management, the consolidated interim financial
statements include all necessary adjustments for a fair
presentation of the financial position and results of operations
for the periods presented.
The Business Combination was accounted for as a reverse
recapitalization, with DFB treated as the acquired company and
AdaptHealth Holdings as the acquirer, for financial reporting
purposes. Therefore, the equity structure has been restated to that
of the Company.
The Company is an “emerging growth company,” as defined in Section
2(a) of the Securities Act of 1933, as amended, (the Securities
Act), as modified by the Jumpstart our Business Startups Act of
2012, (the JOBS Act), and it may take advantage of certain
exemptions from various reporting requirements that are applicable
to other public companies that are not emerging growth companies
including, but not limited to, not being required to comply with
the auditor attestation requirements of Section 404 of the
Sarbanes-Oxley Act, reduced disclosure obligations regarding
executive compensation in its periodic reports and proxy
statements, and other exemptions. We will remain an emerging growth
company until the earliest of (i) the last day of the fiscal year
in which the market value of our Class A Common Stock that is held
by non-affiliates exceeds $700 million as of June 30 of that fiscal
year, (ii) the last day of the fiscal