0001834376-24-000086 | 10-Q | XBRL Viewer

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Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Professional Liability The Company pays fixed premiums for annual professional liability insurance coverage under a claims-made policy. Under such policy, only claims made and reported to the insurer are covered during the policy term, regardless of when the incident giving rise to the claim occurred. The Company records claim liabilities and expected recoveries, if any, at gross amounts. The Company is not currently aware of any unasserted claims or unreported incidents that are expected to exceed medical malpractice insurance coverage limits. Litigation From time to time, the Company may be involved in various legal proceedings and be subject to claims. The Company regularly evaluates the status of claims and legal proceedings in which it is involved in order to assess whether a loss is probable or there is a reasonable possibility that a loss may have been incurred, and to determine whether accruals are appropriate. The Company expenses legal costs as such costs are incurred. Civil Investigative Demands In July 2021, the Company received a civil investigative demand from the Attorney General for the State of Colorado under the Colorado Medicaid False Claims Act. The demand requested information and documents regarding Medicaid billing, patient services and referrals in connection with the Company’s PACE program in Colorado. We continue to fully cooperate with the Attorney General. In February 2022, the Company received a civil investigative demand from the Department of Justice (“DOJ”) under the Federal False Claims Act on similar subject matter. The demand requested information and documents regarding audits, billing, orders tracking, and quality and timeliness of patient services in connection with the Company’s PACE programs in the states where the Company operated as of 2022 (California, Colorado, New Mexico, Pennsylvania, and Virginia). In December 2022, the Company received a supplemental civil investigative demand requesting supplemental information on the same matters. The Company continues to fully cooperate with the DOJ. In October 2024, the Company received a civil investigative demand from the DOJ under the Federal False Claims Act on a similar subject matter. The demand requests information and documents regarding the Company's relationship as a PACE provider with residential care facilities in California and Colorado, related housing costs, and enrollment practices. The Company is fully cooperating with the DOJ and producing the requested information and documentation. We are currently unable to predict the outcome of these investigations. Stockholder Lawsuits On October 14, 2021, and subsequently amended on June 21, 2022, the Company was named as a defendant in a putative class action complaint filed in the District Court for the District of Colorado on behalf of individuals who purchased or acquired shares of the Company’s common stock during a specified period (the "Securities Action"). Through the complaint, plaintiffs are asserting claims against the Company, certain of the Company’s officers and directors, Apax Partners, L.P., Welsh, Carson, Anderson & Stowe and the underwriters in the Company’s IPO, alleging violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 and Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 for making allegedly inaccurate and misleading statements and omissions in connection with the Company’s IPO and subsequent earnings calls and public filings, and seeking compensatory damages, among other things. On September 13, 2022, the Company and the officer and director defendants and Apax Partners, L.P. and Welsh, Carson, Anderson & Stowe filed a motion to dismiss the amended complaint for failure to state a claim upon which relief can be granted. On December 22, 2023, the District Court granted in part and denied in part the motion to dismiss. On September 17, 2024, plaintiffs filed a second amended complaint to add four additional defendants, WCAS Management Corporation, WCAS Management, L.P., WCAS Management, LLC, and TCO Group Holdings, L.P., renames Apax Partners, L.P. as Apax Partners US LLC and drops Welsh, Carson, Anderson & Stowe as a defendant. The action is currently stayed as to WCAS Management Corporation, WCAS Management L.P., WCAS Management, LLC and TCO Group Holdings, L.P. but otherwise continues to be in discovery. On April 20, 2022, the Board of Directors of the Company received a books and records demand pursuant to Section 220 of the Delaware General Corporation Law, from a purported stockholder of the Company, Brian Hall, in connection with the stockholder’s investigation of, among other matters, potential breaches of fiduciary duty, mismanagement, self-dealing, corporate waste or other violations of law by the Company’s Board with respect to these matters. On May 15, 2023, Mr. Hall filed a lawsuit in the Delaware Court of Chancery asserting derivative claims for breach of fiduciary duty against certain of the Company’s current and former officers and directors generally relating to alleged failures by the defendants to take remedial actions to address the matters that resulted in sanctions by CMS at certain of the Company’s centers, and alleged misstatements in the Company’s public filings relating to those matters. On June 28, 2023, upon stipulation of the parties, the court entered an order staying the litigation pending the resolution of the motion to dismiss in the Securities Action or upon fifteen days’ notice by any party to the litigation. On January 22, 2024, upon stipulation of the parties, the court entered an order further staying the litigation pending the close of fact discovery in the Securities Action. We are currently unable to predict the outcome of these matters. Because the results of legal proceedings and claims are inherently unpredictable and uncertain, we are currently unable to predict whether the legal proceedings we are involved in will, either individually or in the aggregate, have a material adverse effect on our business, financial condition, or cash flows. The outcomes of legal proceedings and claims could be material to the Company’s operating results for any particular period, depending in part, upon the operating results of such period. Regardless of the outcome, litigation has the potential to have an adverse impact on us due to any related defense and settlement costs, diversion of management resources, and other factors.

Summary of Significant Accounting Policies (Policies)	3 Months Ended
Summary of Significant Accounting Policies (Policies)	Sep. 30, 2024
Accounting Policies [Abstract]
Basis of Preparation and Principles of Consolidation	Basis of Preparation and Principles of Consolidation The unaudited interim condensed consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to such regulations. These financial statements have been prepared on a basis consistent with the accounting principles applied for the fiscal year ended June 30, 2024. In the opinion of management, all adjustments (consisting of all normal and recurring adjustments) considered necessary for a fair presentation have been included. The condensed consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries and variable interest entities (“VIEs”) for which it is the primary beneficiary and entities for which it is the controlling interest. All intercompany accounts and transactions have been eliminated in consolidation. The Company does not have any components of comprehensive income and comprehensive income is equal to net loss reported in the statements of operations for all periods presented.
Recent Accounting Pronouncements Not Yet Adopted	Recent Accounting Pronouncements Not Yet Adopted Segment Reporting In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses that are regularly provided to the chief operating decision maker. Additionally, ASU 2023-07 requires that all existing annual segment disclosures be provided on an interim basis and clarifies that single reportable segment entities are subject to the disclosure requirement under Topic 280 in its entirety. ASU 2023-07 will be applied retrospectively and is effective for fiscal years beginning after December 15, 2023 and interim periods beginning after December 15, 2024. The Company is evaluating the impact of ASU 2023-07 on our condensed consolidated financial statements. Income Taxes In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 requires additional disclosures related to rate reconciliation, income taxes paid, and other disclosures. ASU 2023-09 requires public companies to annually (i) disclose specific categories in the rate reconciliation and (ii) provide additional information for reconciling items that meet a quantitative threshold. Additionally, ASU 2023-09 requires public companies to annually disclose the amount of income taxes paid, disaggregated by federal, state, and foreign taxes, as well as the amount of income taxes paid by individual jurisdiction. For smaller reporting companies, such as us, ASU 2023-09 is effective for annual periods beginning after December 15, 2025. The Company is currently evaluating the impact of ASU 2023-09 on our condensed consolidated financial statements. We do not expect that any other recently issued accounting guidance will have a significant effect on our condensed consolidated financial statements.

Stock-based Compensation - Schedule of Profits Interests Transactions and Number of Units Outstanding (Details)	3 Months Ended
	Sep. 30, 2024 $ / shares shares
Time Vesting Units
Number of units
Outstanding balance, beginning (in shares) \| shares	1,287,113
Granted (in shares) \| shares	0
Forfeited (in shares) \| shares	0
Vested (in shares) \| shares	(379,917)
Outstanding balance, ending (in shares) \| shares	907,196
Weighted average grant date fair value
Outstanding balance, beginning (in dollars per share) \| $ / shares	$ 5.52
Granted (in dollars per share) \| $ / shares	0
Forfeited (in dollars per share) \| $ / shares	0
Vested (in dollars per share) \| $ / shares	1.28
Outstanding balance, ending (in dollars per share) \| $ / shares	$ 7.30
Performance Vesting Units
Number of units
Outstanding balance, beginning (in shares) \| shares	1,371,671
Granted (in shares) \| shares	0
Forfeited (in shares) \| shares	0
Vested (in shares) \| shares	0
Outstanding balance, ending (in shares) \| shares	1,371,671
Weighted average grant date fair value
Outstanding balance, beginning (in dollars per share) \| $ / shares	$ 1.55
Granted (in dollars per share) \| $ / shares	0
Forfeited (in dollars per share) \| $ / shares	0
Vested (in dollars per share) \| $ / shares	0
Outstanding balance, ending (in dollars per share) \| $ / shares	$ 1.55

Acquisitions - Schedule of Business Acquisitions, by Acquisition (Details) - USD ($) $ in Thousands			10 Months Ended
	Sep. 30, 2024	Dec. 01, 2023	Sep. 30, 2024	Jun. 30, 2024
Business Acquisition [Line Items]
Measurement period, adjustments accounts receivable, net			$ (124)
Goodwill	$ 139,949		139,949	$ 139,949
Concerto
Business Acquisition [Line Items]
Cash Consideration	23,916	$ 23,916
Total Consideration	23,916	23,916
Accounts receivable, net	439	563	439
Measurement period, adjustments accounts receivable, net			(100)
Prepaid expenses	1,069	330	1,069
Measurement period adjustments, prepaid expenses			739
Property and equipment, net	7,969	7,969	7,969
Operating lease assets	7,815	6,892	7,815
Measurement period adjustments, operating lease assets			923
Goodwill	15,732	17,348	15,732
Measurement period adjustments, goodwill			(1,616)
Deposits and other	343	343	343
Accounts payable and accrued expenses	(275)	(353)	(275)
Measurement period adjustments, accounts payable and accrued expenses			78
Reported and estimated claims	(111)	(111)	(111)
Operating lease obligations	(8,941)	(8,941)	(8,941)
Finance lease obligations	(124)	(124)	(124)
Fair value of assets and liabilities	$ 23,916	$ 23,916	23,916
Measurement period adjustments, fair value of assets and liabilities			$ 0

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Operating Activities
Net loss	$ (5,710)	$ (10,962)
Adjustments to reconcile net loss to net cash used in operating activities
Provision for uncollectible accounts	82	1,077
Depreciation and amortization	5,410	4,269
Operating lease rentals	1,572	1,103
Amortization of deferred financing costs	107	107
Stock-based compensation	2,161	1,823
Deferred income taxes	403	226
Other, net	126	58
Changes in operating assets and liabilities, net of acquisitions
Accounts receivable, net	1,290	(20,918)
Prepaid expenses	(3,885)	734
Deposits and other	653	(591)
Accounts payable and accrued expenses	(9,495)	(7,303)
Reported and estimated claims	1,039	(676)
Due to Medicaid and Medicare	388	1,140
Operating lease liabilities	(1,657)	(1,048)
Deferred revenue	0	(2,024)
Net cash used in operating activities	(7,516)	(32,985)
Investing Activities
Purchases of property and equipment	(2,200)	(2,571)
Purchases of short-term investments	(590)	(570)
Net cash used in investing activities	(2,790)	(3,141)
Financing Activities
Payments for finance lease obligations	(1,124)	(1,164)
Principal payments on long-term debt	(949)	(948)
Repurchase of equity securities	(4,821)	0
Taxes paid related to net settlements of stock-based compensation awards	(728)	(614)
Net cash used in financing activities	(7,622)	(2,726)
DECREASE IN CASH, CASH EQUIVALENTS & RESTRICTED CASH	(17,928)	(38,852)
CASH, CASH EQUIVALENTS & RESTRICTED CASH, BEGINNING OF PERIOD	56,960	127,265
CASH, CASH EQUIVALENTS & RESTRICTED CASH, END OF PERIOD	39,032	88,413
Supplemental Cash Flows Information
Interest paid	1,181	404
Income taxes paid	1	0
Property and equipment included in accounts payable	$ 102	$ 281

Related Party Transactions	3 Months Ended
Related Party Transactions	Sep. 30, 2024
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions Pursuant to the PWD Amended and Restated Agreement of Limited Partnership, CCH helped fund operating deficits and shortfalls of PWD in the form of a loan (the “PWD Loan”). The PWD Loan did not accrue interest. Additionally, CCH was paid an administration fee of less than $0.1 million per year. On March 13, 2024, PWD entered into a Purchase and Sale Agreement for the sale of all of PWD's property, including the Senior Housing unit. On May 2, 2024, PWD closed on the sale of its Senior Housing property for $9.5 million. Upon completion of the sale, PWD ceased providing senior housing services and was dissolved. Following the dissolution, the remaining proceeds from the sale were distributed in accordance with the partnership agreement and as otherwise agreed by the partners. The Company received net proceeds of $4.8 million in connection with the dissolution.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

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+ Details

Stock-based Compensation - 2021 Omnibus Incentive Plan (Details)	1 Months Ended
	Mar. 31, 2021 shares
Time Based Restricted Stock Units
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting period	3 years
Time Based Restricted Stock Units \| Vesting, Year 1
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Percentage of vesting	33.33%
Time Based Restricted Stock Units \| Vesting, Year 2
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Percentage of vesting	33.33%
Time Based Restricted Stock Units \| Vesting, Year 3
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Percentage of vesting	33.33%
Time-Based Stock Options
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Vesting period	3 years
2021 Omnibus Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares authorized (in shares)	14,700,000

Segment Reporting (Tables)

3 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Schedule of Operating Results by Reportable Segments

The following table summarizes the operating results regularly provided to the CODM by segment for the three months ended September 30, 2024 and 2023:


	September 30, 2024						September 30, 2023
(In thousands)	PACE		All other(a)		Totals		PACE		All other(a)		Totals
Capitation revenue	$	204,800	$	—	$	204,800	$	182,173	$	—	$	182,173
Other service revenue	96		246		342		86		226		312
Total revenues	204,896		246		205,142		182,259		226		182,485
External provider costs	107,214		—		107,214		99,358		—		99,358
Cost of care, excluding depreciation and amortization	63,234		153		63,387		55,097		153		55,250
Center-Level Contribution Margin	34,448		93		34,541		27,804		73		27,877
Overhead costs(b)	34,027		—		34,027		34,317		9		34,326
Depreciation and amortization	5,295		115		5,410		4,157		112		4,269
Interest expense, net	1,199		44		1,243		616		45		661
Other income	(833)		—		(833)		(643)		—		(643)
Loss Before Income Taxes	$	(5,240)	$	(66)	$	(5,306)	$	(10,643)	$	(93)	$	(10,736)

_________________________________

(a)Center-level Contribution Margin from a segment below the quantitative thresholds is attributable to the Senior Housing operating segment of the Company. This segment has never met any of the quantitative thresholds for determining reportable segments.

(b)Overhead consists of the Sales and marketing and Corporate, general and administrative financial statement line items.

Segment Reporting - Schedule of Operating Results by Reportable Segments (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Segment Reporting Information [Line Items]
Total revenues	$ 205,142	$ 182,485
External provider costs	107,214	99,358
Cost of care, excluding depreciation and amortization	63,387	55,250
Center-Level Contribution Margin	34,541	27,877
Overhead costs	34,027	34,326
Depreciation and amortization	5,410	4,269
Interest expense, net	1,243	661
Other income	(833)	(643)
Income (Loss) Before Income Taxes	(5,306)	(10,736)
Capitation revenue
Segment Reporting Information [Line Items]
Total revenues	204,800	182,173
Other service revenue
Segment Reporting Information [Line Items]
Total revenues	342	312
PACE
Segment Reporting Information [Line Items]
Total revenues	204,896	182,259
External provider costs	107,214	99,358
Cost of care, excluding depreciation and amortization	63,234	55,097
Center-Level Contribution Margin	34,448	27,804
Overhead costs	34,027	34,317
Depreciation and amortization	5,295	4,157
Interest expense, net	1,199	616
Other income	(833)	(643)
Income (Loss) Before Income Taxes	(5,240)	(10,643)
PACE \| Capitation revenue
Segment Reporting Information [Line Items]
Total revenues	204,800	182,173
PACE \| Other service revenue
Segment Reporting Information [Line Items]
Total revenues	96	86
All other
Segment Reporting Information [Line Items]
Total revenues	246	226
External provider costs	0	0
Cost of care, excluding depreciation and amortization	153	153
Center-Level Contribution Margin	93	73
Overhead costs	0	9
Depreciation and amortization	115	112
Interest expense, net	44	45
Other income	0	0
Income (Loss) Before Income Taxes	(66)	(93)
All other \| Capitation revenue
Segment Reporting Information [Line Items]
Total revenues	0	0
All other \| Other service revenue
Segment Reporting Information [Line Items]
Total revenues	$ 246	$ 226

Income Taxes	3 Months Ended
Income Taxes	Sep. 30, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company recorded an income tax expense of $0.4 million and an income tax expense of $0.2 million for the three months ended September 30, 2024 and 2023, respectively. This represents an effective tax rate of (7.6)% and (2.1)% for the three months ended September 30, 2024 and 2023, respectively. The effective rate for the three months ended September 30, 2024 was different from the federal statutory rate primarily due to the Company’s book loss offset partially by disallowed officers’ compensation under Internal Revenue Code (“IRC”) Section 162(m), disallowed stock options related to the profit interest units, exclusion of losses from entities not subject to tax, lobbying expenses, a change to the Pennsylvania tax rate, and the increase in the Company's valuation allowance against net operating losses which occurred during the three-month period. The Company assesses the valuation allowance recorded against deferred tax assets at each reporting date. The determination of whether a valuation allowance for deferred tax assets is appropriate requires the evaluation of positive and negative evidence that can be objectively verified. Consideration must be given to all sources of taxable income available to realize deferred tax assets, including, as applicable, the future reversal of existing temporary differences, future taxable income forecasts exclusive of the reversal of temporary differences and carryforwards, taxable income in carryback years and tax planning strategies. In estimating income taxes, the Company assesses the relative merits and risks of the appropriate income tax treatment of transactions taking into account statutory, judicial, and regulatory guidance. As of the three-month period ended September 30, 2024, the Company determined that it is not “more likely than not” that the deferred tax assets associated with certain state net operating losses will be realized and as such continues to maintain a valuation allowance against these state deferred tax assets. The Company also determined it is not "more likely than not" that the deferred tax assets associated with certain federal net operating losses will be realized and as such has included a valuation allowance against these federal deferred tax assets. The Company has provided $20.3 million at September 30, 2024 and $15.9 million at June 30, 2024, as a valuation allowance against its deferred tax assets for federal and state net operating losses and state 163(j) interest expense limitations where there is not sufficient positive evidence to substantiate that these deferred tax assets will be realized at a more-likely-than-not level of assurance.

- Definition

The entire disclosure for income tax.

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-URI https://asc.fasb.org/1943274/2147482685/740-10-50-21

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-17

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-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2

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-Topic 740
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-Section 50
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+ Details

Fair Value Measurements - Schedule of Fair Value of Cash, Cash Equivalents and Marketable Securities by Significant Investment Category (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Jun. 30, 2024
Fair values, Assets Measured on a Recurring Basis
Amortized Cost	$ 85,170	$ 102,502
Fair Value	85,678	102,779
Cash and Cash Equivalents	39,019	56,946
Short- term Investments	46,659	45,833
Cash
Fair values, Assets Measured on a Recurring Basis
Amortized Cost	27,540	25,793
Fair Value	27,540	25,793
Cash and Cash Equivalents	27,540	25,793
Short- term Investments	0	0
Money market funds \| Level 1
Fair values, Assets Measured on a Recurring Basis
Amortized Cost	11,479	31,153
Fair Value	11,479	31,153
Cash and Cash Equivalents	11,479	31,153
Short- term Investments	0	0
Mutual funds \| Level 1
Fair values, Assets Measured on a Recurring Basis
Amortized Cost	46,151	45,556
Fair Value	46,659	45,833
Cash and Cash Equivalents	0	0
Short- term Investments	$ 46,659	$ 45,833

Related Party Transactions (Details) - USD ($) $ in Millions		3 Months Ended
	May 02, 2024	Sep. 30, 2024
Related Party Transaction [Line Items]
Proceeds from sale of senior housing property	$ 4.8
Pinewood Lodge, LLP (PWD)
Related Party Transaction [Line Items]
Proceeds from sale of senior housing property	$ 9.5
Administrative Fee Per Year
Related Party Transaction [Line Items]
Administrative fee per year		$ 0.1

Long-Term Debt

3 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

Long-Term Debt

Long-term debt consisted of the following at September 30, 2024 and June 30, 2024:


	September 30, 2024		June 30, 2024
	in thousands
Senior secured borrowings:
Term Loan Facility	$	62,813	$	63,750
Convertible term loan	2,227		2,239
Total debt	65,040		65,989
Less: unamortized debt issuance costs	608		716
Less: current maturities	3,795		3,795
Noncurrent maturities	$	60,637	$	61,478

2021 Credit Agreement

On March 8, 2021, the Company entered into a credit agreement (as amended, the “2021 Credit Agreement”) that replaced its prior credit agreement. The 2021 Credit Agreement consists of a senior secured term loan (the “Term Loan Facility”) of $75.0 million principal amount and a revolving credit facility (the “Revolving Credit Facility”) of $100.0 million maximum borrowing capacity, each with a maturity date of March 8, 2026. Borrowing capacity under the Revolving Credit Facility is subject to (i) any issued amounts under our letters of credit, which as of September 30, 2024 was $5.2 million, and (ii) applicable covenant compliance restrictions and any other conditions precedent to borrowing. Loans under the 2021 Credit Agreement are secured by substantially all of the Company’s assets. Principal on the Term Loan Facility is paid each calendar quarter in an amount equal to 1.25% of the initial term loan on closing date.

Outstanding principal amounts under the 2021 Credit Agreement accrue interest at a variable interest rate. As of September 30, 2024, the interest rate on the Term Loan Facility was 6.94%. Under the terms of the 2021 Credit Agreement, the Revolving Credit Facility fee accrues at 0.25% of the average daily unused amount and is paid quarterly. As of September 30, 2024, we had no borrowings outstanding, $5.2 million of letters of credit issued, and $94.8 million of remaining capacity under the Revolving Credit Facility.

The 2021 Credit Agreement requires the Company to meet certain operational and reporting requirements, including, but not limited to, a secured net leverage ratio. Additionally, annual capital expenditures and permitted investments, including acquisitions, are limited to amounts specified in the 2021 Credit Agreement. The 2021 Credit Agreement also provides certain restrictions on dividend payments and other equity transactions and requires the Company to make prepayments under specified circumstances. As of September 30, 2024, the Company was in compliance with the covenants of the 2021 Credit Agreement.

The deferred financing costs of $2.0 million are amortized over the term of the underlying debt and unamortized amounts have been offset against long-term debt in the condensed consolidated balance sheets. Total amortization of deferred financing costs was $0.1 million for each of the three months ended September 30, 2024 and 2023.

Convertible Term Loan

On June 29, 2015, SH1 entered into a convertible term loan. Principal and interest payments of $0.02 million are due monthly. The loan bears interest at an annual rate of 6.68%, with the remaining principal balance due upon maturity at August 20, 2030. The loan is secured by a deed of trust to Public Trustee, assignment of leases and rents, security agreements, and SH1’s fixture filing.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

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+ Details

Stock-based Compensation - Profits Interests (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Common Class B
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Profits interests granted (in shares)	0	1,963,700
Profits interests units
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unrecognized compensation cost	$ 3.7
Time Vesting Units
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Profits interests granted (in shares)	0
Unrecognized compensation cost	$ 1.6
Weighted-average period (in years)	3 years 2 months 12 days
Performance Vesting Units
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Profits interests granted (in shares)	0
Unrecognized compensation cost	$ 2.1
2020 Equity Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Profits interests granted (in shares)	15,222,837
Maximum \| 2020 Equity Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares authorized (in shares)	16,162,177

Long-Term Debt (Tables)

3 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

Schedule of Long-term Debt

Long-term debt consisted of the following at September 30, 2024 and June 30, 2024:


	September 30, 2024		June 30, 2024
	in thousands
Senior secured borrowings:
Term Loan Facility	$	62,813	$	63,750
Convertible term loan	2,227		2,239
Total debt	65,040		65,989
Less: unamortized debt issuance costs	608		716
Less: current maturities	3,795		3,795
Noncurrent maturities	$	60,637	$	61,478

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(22))
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+ Details

Fair Value Measurements (Tables)

3 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Schedule of Fair Value of Cash, Cash Equivalents and Marketable Securities by Significant Investment Category

The following table shows the Company’s cash, cash equivalents and marketable securities by significant investment category as of September 30, 2024 and June 30, 2024:


	September 30, 2024
in thousands	Amortized Cost		Fair Value		Cash and Cash Equivalents		Short- term Investments
Cash	$	27,540	$	27,540	$	27,540	$	—
Level 1
Money market funds	11,479		11,479		11,479		—
Mutual funds	46,151		46,659		—		46,659
Total	$	85,170	$	85,678	$	39,019	$	46,659

	June 30, 2024
in thousands	Amortized Cost		Fair Value		Cash and Cash Equivalents		Short- term Investments
Cash	$	25,793	$	25,793	$	25,793	$	—
Level 1
Money market funds	31,153		31,153		31,153		—
Mutual funds	45,556		45,833		—		45,833
Total	$	102,502	$	102,779	$	56,946	$	45,833

Revenue Recognition

3 Months Ended

Sep. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Under ASC 606, revenue is recognized when a customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine revenue recognition, the Company performs the following five steps: (i) Identify the contract(s) with a customer; (ii) Identify the performance obligations in the contract; (iii) Determine the transaction price; (iv) Allocate the transaction price to the performance obligations in the contract; and (v) Recognize revenue as the entity satisfies a performance obligation.

Capitation Revenue and Accounts Receivable

Our capitation revenue relates to contracts with participants in which our performance obligation is to provide healthcare services to the participants. Revenues are recorded during the period our obligations to provide healthcare services are satisfied as noted below within each service type. The Company contracts directly with Medicare and Medicaid on a per member, per month (“PMPM”) basis. We receive 100% of the pooled capitated payment to directly provide or manage the healthcare needs of our participants.

Fees are recorded gross in revenues because the Company is acting as a principal in providing for or overseeing comprehensive care provided to the participants. Neither the Company nor any of its affiliates is a registered insurance company because state law in the states in which it operates does not require such registration for risk-bearing providers.

In general, a participant enrolls in the PACE program and is considered a customer of InnovAge. The Company considers all contracts with participants as a single performance obligation to provide comprehensive medical, health, and social services that integrate acute and long-term care. The Company identified that contracts with customers in the PACE program have similar performance obligations and therefore groups them into one portfolio. This performance obligation is satisfied over time as the Company provides comprehensive care to its participants.

Our revenues are based on the estimated PMPM amounts we expect to be entitled to receive from the capitated fees per participant that are paid monthly by Medicaid, Medicare, the VA, and private pay sources. Medicaid and Medicare capitation revenues are based on PMPM capitation rates under the PACE program. VA is included in “Private Pay and other” and is also capitated. Private pay includes direct payments from participants who do not qualify for the full capitated rate and have to pay all or a portion of the capitated rate. Costs to obtain contracts consist of sales commissions for new enrollees and are included in Deposits and other on our condensed consolidated balance sheets. These costs are amortized over a three-year period which corresponds to the average time a participant is enrolled in the PACE program. As of September 30, 2024 and June 30, 2024, contract assets included within deposits and other were $3.3 million and $2.8 million, respectively.

The Company disaggregates capitation revenue from the following sources for the three months ended:


	September 30,
	2024		2023
Medicaid	55	%	55	%
Medicare	45	%	45	%

Total	100	%	100	%

The Company determined the transaction price for these contracts is the amount we expect to be entitled to, which is the most likely amount. For certain capitation payments, the Company is subject to retroactive premium risk adjustment payments according to the CMS risk adjustment payment timeline. Specifically, there is a midyear true up payment based on updated risk score calculations and a final true up payment to allow for complete diagnosis submission. The Company estimates the amount of the adjustment and records it monthly on a straight-line basis. These adjustments are not expected to be material.

The capitation revenues are recognized based on the estimated PMPM transaction price to transfer the service for a distinct increment of the series (i.e. month). We recognize revenue over time in the month in which participants are entitled to receive comprehensive care benefits during the contract term. As the period between the time of service and time of payment is typically one year or less, the Company elected the practical expedient under ASC 606-10-32-18 and did not adjust for the effects of a significant financing component.

The Company also provides prescription drug benefits in accordance with Medicare Part D. Monthly payments received from CMS and the participants represent the bid amount for providing prescription drug coverage. The portion received from CMS is subject to risk sharing through Medicare Part D risk-sharing corridor provisions. These risk-sharing corridor provisions compare costs targeted in the Company’s bid to actual prescription drug costs. The Company estimates and records a monthly adjustment to Medicare Part D revenues associated with these risk-sharing corridor provisions. Medicare Part D comprised 13% of capitation revenues for each of the three months ended September 30, 2024 and 2023.

The Company provides comprehensive healthcare services to participants on the basis of capitated or fixed fees per participant that are paid monthly by Medicare, Medicaid, the VA and private pay sources. Our accounts receivable as of September 30, 2024 and June 30, 2024 were primarily from capitation revenue arrangements. The concentration of net receivables from participants and third-party payers was as follows:


	September 30, 2024		June 30, 2024
Medicaid	86	%	71	%
Medicare	10	%	22	%
Private pay and other	4	%	7	%
Total	100	%	100	%

The Company records accounts receivable at net realizable value based upon the estimated amounts the Company expects to be entitled to receive from Medicare, Medicaid, the VA and private pay sources. Estimated reimbursement amounts are adjusted in future periods as final settlements are determined. Accounts are written off as bad debts when they are deemed uncollectible based upon individual credit evaluations and specific circumstances underlying the accounts.

Other Service Revenue and Accounts Receivable

Other service revenue primarily consists of revenues derived from state food grants and rent revenues. Accounts receivable related to other service revenue were not significant as of both September 30, 2024 and June 30, 2024.

Laws and regulations governing the Medicare and Medicaid programs are complex and subject to change, as well as government review. Failure to comply with these laws can expose the entity to significant regulatory action, including fines, penalties, and exclusion from the Medicare and Medicaid programs. See Note 9, “Commitments and Contingencies.”

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
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-URI https://asc.fasb.org/1943274/2147479806/606-10-50-9

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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-Topic 606
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-URI https://asc.fasb.org/606/tableOfContent

+ Details

Goodwill and Intangible Assets - Schedule of Intangible Asset (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Jun. 30, 2024
Intangible Assets, Net (Including Goodwill) [Abstract]
Definite-lived intangible assets	$ 6,600	$ 6,600
Indefinite-lived intangible assets	2,000	2,000
Total intangible assets	8,600	8,600
Accumulated amortization	(4,227)	(4,062)
Balance as of end of period	$ 4,373	$ 4,538

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Jun. 30, 2024
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ 404	$ 226
Effective tax rate (as a percent)	(7.60%)	(2.10%)
Valuation allowance	$ 20,300		$ 15,900

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 270
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482964/270-10-50-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (ee)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-12

Reference 4: http://www.xbrl.org/2003/role/exampleRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 231
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482663/740-10-55-231

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-9

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 6.I.7)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 8
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483443/250-10-50-8

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482685/740-10-50-10

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-22

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(9))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477250/944-220-S99-1

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Section 45
-Paragraph 2
-Subparagraph (a)
-SubTopic 20
-Topic 740
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482659/740-20-45-2

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h))
-SubTopic 10
-Topic 235
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

+ Details

Business (Details)	3 Months Ended
Business (Details)	Sep. 30, 2024 segment participant center
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable segments \| segment	1
Number of PACE participants \| participant	7,210
Number of PACE centers excluding non-consolidating joint ventures \| center	20
Percentage of obligation for health care costs	100.00%

Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Jun. 30, 2024	Sep. 30, 2023	Jun. 30, 2023
Fair Value Disclosures [Abstract]
Redeemable noncontrolling interests	$ 21,657	$ 22,200	$ 12,138	$ 12,708

Goodwill and Intangible Assets (Tables)

3 Months Ended

Sep. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Asset

Intangible assets consisted of the following as of:


in thousands	September 30, 2024		June 30, 2024
Definite-lived intangible assets	$	6,600	$	6,600
Indefinite-lived intangible assets	2,000		2,000
Total intangible assets	8,600		8,600
Accumulated amortization	(4,227)		(4,062)
Balance as of end of period	$	4,373	$	4,538

Goodwill and Intangible Assets

3 Months Ended

Sep. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill represents the excess of cost over the fair value of net assets acquired. Goodwill amounted to $139.9 million at each of September 30, 2024 and June 30, 2024. Goodwill is not amortized.

Pursuant to ASC 350, “Intangibles – Goodwill and Other,” we review the recoverability of goodwill annually as of April 1 or whenever significant events or changes occur which might impair the recovery of recorded amounts. For purposes of the annual goodwill impairment assessment, the Company identified two reporting units, East and West. There were no indicators of impairment identified and no goodwill impairment recorded during the three months ended September 30, 2024 and 2023.

Intangible assets consisted of the following as of:


in thousands	September 30, 2024		June 30, 2024
Definite-lived intangible assets	$	6,600	$	6,600
Indefinite-lived intangible assets	2,000		2,000
Total intangible assets	8,600		8,600
Accumulated amortization	(4,227)		(4,062)
Balance as of end of period	$	4,373	$	4,538

Intangible assets consist primarily of customer relationships acquired through business acquisitions. The Company recorded amortization expense of $0.2 million for each of the three months ended September 30, 2024 and 2023.

We review the recoverability of other intangible assets in conjunction with long-lived assets whenever events or changes in circumstances indicate the carrying amount of such assets may not be recoverable. There were no intangible asset impairments recorded during the three months ended September 30, 2024 and 2023.

Stock-based Compensation (Tables)

3 Months Ended

Sep. 30, 2024

Share-Based Payment Arrangement [Abstract]

Schedule of Stock-based Compensation Expense

A summary of our aggregate stock-based compensation expense is set forth below. Stock-based compensation expense is included in corporate, general and administrative expenses on our condensed consolidated statements of operations.


	Three months ended September 30,
	2024		2023
	in thousands

Stock options	$	186	$	223
Profits interests units	174		376
Restricted stock units	1,801		1,224
Total stock-based compensation expense	$	2,161	$	1,823

Schedule of Profits Interests Transactions and Number of Units Outstanding

A summary of profits interests activity for the three months ended September 30, 2024 is as follows:


Time-based unit awards	Number of units	Weighted average grant date fair value

Outstanding balance, June 30, 2024	1,287,113	$	5.52
Granted	—	$	—
Forfeited	—	$	—
Vested	(379,917)	$	1.28
Outstanding balance, September 30, 2024	907,196	$	7.30


Performance-based unit awards	Number of units	Weighted average grant date fair value

Outstanding balance, June 30, 2024	1,371,671	$	1.55
Granted	—	$	—
Forfeited	—	$	—
Vested	—	$	—
Outstanding balance, September 30, 2024	1,371,671	$	1.55

Schedule of Restricted Stock Units Activity

A summary of time-based vesting restricted stock units activity for the three months ended September 30, 2024 is as follows:


Restricted stock units - time based	Number of awards	Weighted average grant-date fair value per share

Outstanding balance, June 30, 2024	2,864,319	$	8.15
Granted	132,559	$	6.29
Forfeited	(45,846)	$	5.27
Vested	(341,622)	$	5.33
Outstanding balance, September 30, 2024	2,609,410	$	8.47

A summary of performance based vesting restricted stock units activity for the three months ended September 30, 2024 is as follows:


Restricted stock units - performance based	Number of awards	Weighted average grant-date fair value per share

Outstanding balance, June 30, 2024	258,767	$	5.18
Granted	—	$	—
Forfeited	—	$	—
Vested	—	$	—
Outstanding balance, September 30, 2024	258,767	$	5.18

Schedule of Stock Option Activity

A summary of time-based vesting stock option activity for the three months ended September 30, 2024 is as follows:


Stock options - time based	Number of awards	Weighted average grant-date fair value per share

Outstanding balance, June 30, 2024	554,499	$	1.77
Granted	—	$	—
Forfeited	—	$	—
Exercised	—	$	—
Expired	—	$	—
Outstanding balance, September 30, 2024	554,499	$	1.77

Exercisable balance, September 30, 2024	381,216	$	0.16

A summary of performance-based vesting stock option activity for the three months ended September 30, 2024 is as follows:


Stock options - performance based	Number of awards	Weighted average grant-date fair value per share

Outstanding balance, June 30, 2024	776,299	$	3.08
Granted	—	$	—
Forfeited	—	$	—
Vested	—	$	—
Outstanding balance, September 30, 2024	776,299	$	3.08

Leases - Schedule of Future Maturities of Lease Payments for Operating / Finance Leases (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Jun. 30, 2024
Operating Lease
Amount remaining in 2025	$ 6,023
2026	5,988
2027	5,742
2028	4,952
2029	4,097
Thereafter	11,582
Total lease payments	38,384
Less liability accretion / imputed interest	(9,081)
Total lease liabilities	29,303
Less: Current lease liabilities	4,311	$ 4,145
Total long-term lease liabilities	24,992	26,275
Finance Lease
Amount remaining in 2025	6,615
2026	5,389
2027	4,514
2028	2,461
2029	555
Thereafter	0
Total lease payments	19,534
Less liability accretion / imputed interest	(3,316)
Total lease liabilities	16,218
Less: Current lease liabilities	5,365	4,599
Total long-term lease liabilities	10,853	$ 12,743
Total
Amount remaining in 2025	12,638
2026	11,377
2027	10,256
2028	7,413
2029	4,652
Thereafter	11,582
Total lease payments	57,918
Less liability accretion / imputed interest	(12,397)
Total lease liabilities	45,521
Less: Current lease liabilities	9,676
Total long-term lease liabilities	$ 35,845

Acquisitions - Narrative (Details)			10 Months Ended
Acquisitions - Narrative (Details)	Sep. 30, 2024 USD ($)	Dec. 01, 2023 USD ($) program	Sep. 30, 2024 USD ($)
Business Acquisition [Line Items]
Measurement period, adjustments accounts receivable, net			$ 124,000
Concerto
Business Acquisition [Line Items]
Number of programs acquired \| program		2
Cash payments to acquire business	$ 23,916,000	$ 23,916,000
Goodwill expected to be deductible for income tax purposes		$ 0
Measurement period adjustments, prepaid expenses			739,000
Measurement period adjustments, operating lease assets			923,000
Measurement period, adjustments accounts receivable, net			100,000
Measurement period adjustments, accounts payable and accrued expenses			78,000
Measurement period adjustments, goodwill			$ 1,616,000

Share Repurchase Program	3 Months Ended
Share Repurchase Program	Sep. 30, 2024
Equity [Abstract]
Share Repurchase Program	Share Repurchase Program On June 10, 2024, the Board announced the authorization of a share repurchase program of up to $5.0 million of the Company's common stock. On September 26, 2024, the Board announced the authorization of an additional $2.5 million shares of the Company's common stock. During the three months ended September 30, 2024, the Company repurchased 801,287 shares of its common stock for approximately $4.8 million, of which 800,813 were placed in Treasury.

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-13

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-14

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477968/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147477968/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 505
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478448/946-505-50-6

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480237/815-40-50-6

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480008/505-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(e)(1))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 505
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/505/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-13

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-13

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-13

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-14

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-14

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 16
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-16

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-18

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-18

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481112/505-10-50-18

+ Details

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2024	Jun. 30, 2024
Statement of Financial Position [Abstract]
Allowance for loss	$ 3,693	$ 6,729
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock authorized (in shares)	500,000,000	500,000,000
Common stock issued (in shares)	136,362,736	136,152,858
Common stock outstanding (in shares)	135,538,698	136,116,299
Treasury stock at cost (in shares)	837,372	36,559

Commitments and Contingencies (Details) - defendant	Sep. 17, 2024	Jun. 28, 2023
Commitments and Contingencies Disclosure [Abstract]
Pending litigation, additional defendants added to amended complaint	4
Pending litigation, motion to dismiss resolution, notice period		15 days

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Revenues
Total revenues	$ 205,142	$ 182,485
Expenses
External provider costs	107,214	99,358
Cost of care, excluding depreciation and amortization	63,387	55,250
Sales and marketing	6,492	5,379
Corporate, general and administrative	27,535	28,947
Depreciation and amortization	5,410	4,269
Total expenses	210,038	193,203
Operating Loss	(4,896)	(10,718)
Other Income (Expense)
Interest expense, net	(1,243)	(661)
Other income	833	643
Total other expense	(410)	(18)
Income (Loss) Before Income Taxes	(5,306)	(10,736)
Provision for Income Taxes	404	226
Net Loss	(5,710)	(10,962)
Less: net loss attributable to noncontrolling interests	(781)	(658)
Net Loss Attributable to InnovAge Holding Corp.	$ (4,929)	$ (10,304)
Weighted-average number of common shares outstanding - basic (in shares)	135,769,835	135,790,401
Weighted-average number of common shares outstanding - diluted (in shares)	135,769,835	135,790,401
Net loss per share - basic (in dollars per share)	$ (0.04)	$ (0.08)
Net loss per share - diluted (in dollars per share)	$ (0.04)	$ (0.08)
Capitation revenue
Revenues
Total revenues	$ 204,800	$ 182,173
Other service revenue
Revenues
Total revenues	$ 342	$ 312

Leases - Schedule of Weighted Average Lease Terms and Discount Rates (Details)	Sep. 30, 2024	Sep. 30, 2023
Leases [Abstract]
Weighted average remaining lease term, Operating leases	7 years 6 months	7 years 8 months 12 days
Weighted average remaining lease term, Finance leases	3 years 3 months 18 days	3 years 8 months 12 days
Weighted average discount rate, Operating leases	6.85%	6.62%
Weighted average discount rate, Finance leases	7.82%	7.87%

Acquisitions (Tables)

3 Months Ended

Sep. 30, 2024

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

Schedule of Preliminary Allocation of the Purchase Price

The following table presents the preliminary allocation of the purchase price to the assets acquired and liabilities assumed as of the acquisition date, measurement period adjustments and the allocation as of September 30, 2024:


	Preliminary allocation		Measurement period adjustments		Adjusted allocation
	in thousands

Cash Consideration	$	23,916	$	—	$	23,916
Total Consideration	$	23,916	$	—	$	23,916

Accounts receivable, net	$	563	$	(124)	$	439
Prepaid expenses	330		739		1,069
Property and equipment, net	7,969		—		7,969
Operating lease assets	6,892		923		7,815
Goodwill	17,348		(1,616)		15,732
Deposits and other	343		—		343
Accounts payable and accrued expenses	(353)		78		(275)
Reported and estimated claims	(111)		—		(111)
Operating lease obligations	(8,941)		—		(8,941)
Finance lease obligations	(124)		—		(124)
Fair value of assets and liabilities	$	23,916	$	—	$	23,916

Schedule of Assets Acquired and Liabilities Assumed


	Preliminary allocation		Measurement period adjustments		Adjusted allocation
	in thousands

Cash Consideration	$	23,916	$	—	$	23,916
Total Consideration	$	23,916	$	—	$	23,916

Accounts receivable, net	$	563	$	(124)	$	439
Prepaid expenses	330		739		1,069
Property and equipment, net	7,969		—		7,969
Operating lease assets	6,892		923		7,815
Goodwill	17,348		(1,616)		15,732
Deposits and other	343		—		343
Accounts payable and accrued expenses	(353)		78		(275)
Reported and estimated claims	(111)		—		(111)
Operating lease obligations	(8,941)		—		(8,941)
Finance lease obligations	(124)		—		(124)
Fair value of assets and liabilities	$	23,916	$	—	$	23,916

Segment Reporting - Narrative (Details)	3 Months Ended
Segment Reporting - Narrative (Details)	Sep. 30, 2024 segment division
Segment Reporting Information [Line Items]
Number of operating segments	3
Number of reportable segments	1
PACE
Segment Reporting Information [Line Items]
Number of operating segments	2
Number of geographic divisions \| division	2

Revenue Recognition - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Jun. 30, 2024
Revenue Recognition
Pooled capitated payment	100.00%
Amortization period of cost to obtain contract	3 years
Contract assets	$ 3.3		$ 2.8
Revenue from Contract with Customer Benchmark \| Customer Concentration Risk
Revenue Recognition
Risk percentage	100.00%	100.00%
Medicare Part D \| Revenue from Contract with Customer Benchmark \| Customer Concentration Risk
Revenue Recognition
Risk percentage	13.00%	13.00%

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Long-Term Debt - Narrative (Details) - USD ($)			3 Months Ended
Long-Term Debt - Narrative (Details) - USD ($)	Mar. 08, 2021	Jun. 29, 2015	Sep. 30, 2024	Sep. 30, 2023	Jun. 30, 2024
Debt Instrument [Line Items]
Total debt			$ 65,040,000		$ 65,989,000
Term Loan Facility
Debt Instrument [Line Items]
Total debt			62,813,000		63,750,000
Convertible term loan
Debt Instrument [Line Items]
Interest rate (as a percent)		6.68%
Total debt			2,227,000		$ 2,239,000
Monthly principal and interest payments		$ 20,000.00
2021 Credit Agreement \| Revolving Credit Facility
Debt Instrument [Line Items]
Loan amount	$ 100,000,000.0
Letters of credit, issued amounts			5,200,000
Commitment fee percentage	0.25%
Total debt			0
Remaining borrowing capacity			94,800,000
Deferred financing costs amortized			2,000,000.0
Amortization of deferred financing costs			$ 100,000	$ 100,000
2021 Credit Agreement \| Term Loan Facility
Debt Instrument [Line Items]
Loan amount	$ 75,000,000.0
Percentage of aggregate outstanding principal amount (as a percent)	1.25%
Interest rate (as a percent)			6.94%

Cover - shares	3 Months Ended
Cover - shares	Sep. 30, 2024	Nov. 04, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
Document Transition Report	false
Entity File Number	001-40159
Entity Registrant Name	InnovAge Holding Corp.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	81-0710819
Entity Address, Address Line One	8950 E. Lowry Boulevard
Entity Address, City or Town	Denver
Entity Address, State or Province	CO
Entity Address, Postal Zip Code	80230
City Area Code	844
Local Phone Number	803-8745
Title of 12(b) Security	Common Stock, $0.001 par value
Trading Symbol	INNV
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		135,455,244
Entity Central Index Key	0001834376
Current Fiscal Year End Date	--06-30
Document Fiscal Year Focus	2025
Document Fiscal Period Focus	Q1
Amendment Flag	false

Segment Reporting

3 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Segment Reporting

The Company applies ASC Topic 280, "Segment Reporting," which establishes requirements to report selected segment information quarterly and to report annually entity-wide disclosures about operations, major customers and the geographies in which the entity holds material assets and reports revenue. An operating segment is defined as a component that engages in business activities whose operating results are reviewed by the Company’s chief executive officer, who is the chief operating decision maker (“CODM”), and for which discrete financial information is available. The Company has determined that it has three operating segments, two of which are related to the Company’s PACE offering. The PACE-related operating segments are based on two geographic divisions, which are East and West. Due to the similar economic characteristics, nature of services, and customers, we have aggregated our East and West operating segments into one reportable segment for PACE. The Company’s remaining operating segment primarily relates to Senior Housing, which is an immaterial operating segment, and shown below as "Other" along with certain corporate unallocated expenses.

The Company evaluates performance and allocates capital resources to each segment based on an operating model that is designed to maximize the quality of care provided and profitability. The Company does not review assets by segment and therefore assets by segment are not disclosed below. For the periods presented, all of the Company’s long-lived assets were located in the United States and all revenue was earned in the United States.

The CODM uses Center-level Contribution Margin as the measure for assessing performance of its operating segments. Center-level Contribution Margin is defined as total segment revenues less external provider costs and cost of care (excluding depreciation and amortization). The Company allocates corporate level expenses to its segments with a majority of the allocation going to the PACE segment.

The following table summarizes the operating results regularly provided to the CODM by segment for the three months ended September 30, 2024 and 2023:


	September 30, 2024						September 30, 2023
(In thousands)	PACE		All other(a)		Totals		PACE		All other(a)		Totals
Capitation revenue	$	204,800	$	—	$	204,800	$	182,173	$	—	$	182,173
Other service revenue	96		246		342		86		226		312
Total revenues	204,896		246		205,142		182,259		226		182,485
External provider costs	107,214		—		107,214		99,358		—		99,358
Cost of care, excluding depreciation and amortization	63,234		153		63,387		55,097		153		55,250
Center-Level Contribution Margin	34,448		93		34,541		27,804		73		27,877
Overhead costs(b)	34,027		—		34,027		34,317		9		34,326
Depreciation and amortization	5,295		115		5,410		4,157		112		4,269
Interest expense, net	1,199		44		1,243		616		45		661
Other income	(833)		—		(833)		(643)		—		(643)
Loss Before Income Taxes	$	(5,240)	$	(66)	$	(5,306)	$	(10,643)	$	(93)	$	(10,736)

_________________________________

(b)Overhead consists of the Sales and marketing and Corporate, general and administrative financial statement line items.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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+ Details

Stock-based Compensation

3 Months Ended

Sep. 30, 2024

Share-Based Payment Arrangement [Abstract]

Stock-based Compensation


	Three months ended September 30,
	2024		2023
	in thousands

Stock options	$	186	$	223
Profits interests units	174		376
Restricted stock units	1,801		1,224
Total stock-based compensation expense	$	2,161	$	1,823

2020 Equity Incentive Plan

Profits Interests

TCO Group Holdings, L.P. (the “LP”), the Company’s largest shareholder and prior to the IPO, the Company’s parent, maintains the TCO Group Holdings, L.P. Equity Incentive Plan (the "2020 Equity Incentive Plan") pursuant to which interests in the LP in the form of Class B Units (profits interests) may be granted to employees, directors, consultants, advisers, and other services providers (including partners) of the LP or any of its affiliates, including the Company. A maximum number of 16,162,177 Class B Units are authorized for grant under the 2020 Equity Incentive Plan. Both performance-based and time-based units have been issued under the plan. As of September 30, 2024, a total of 15,222,837 profits interests units had been granted under the 2020 Equity Incentive Plan.

The Company used the Monte Carlo option model to determine the fair value of the granted profits interests units at the time of the grant. Expected stock price volatility is based on consideration of indications observed from several publicly traded peer companies. The risk-free interest rate is based on a treasury instrument whose term is consistent with the expected life of the unit. The dividend yield percentage is zero because the Company neither currently pays dividends nor intends to do so during the expected term. The expected term of the units represents the time the units are expected to be outstanding. A total of 1,963,700 Class B Units were awarded during the three months ended September 30, 2023 to the Company's Chief Executive Officer and Chief Financial Officer. There were no Class B Units awarded during the three months ended September 30, 2024.

A summary of profits interests activity for the three months ended September 30, 2024 is as follows:


Time-based unit awards	Number of units	Weighted average grant date fair value

Outstanding balance, June 30, 2024	1,287,113	$	5.52
Granted	—	$	—
Forfeited	—	$	—
Vested	(379,917)	$	1.28
Outstanding balance, September 30, 2024	907,196	$	7.30


Performance-based unit awards	Number of units	Weighted average grant date fair value

Outstanding balance, June 30, 2024	1,371,671	$	1.55
Granted	—	$	—
Forfeited	—	$	—
Vested	—	$	—
Outstanding balance, September 30, 2024	1,371,671	$	1.55

The total unrecognized compensation cost related to profits interests units outstanding as of September 30, 2024 was $3.7 million, comprised (i) $1.6 million related to time-based unit awards expected to be recognized over a weighted-average period of 3.2 years and (ii) $2.1 million related to performance-based unit awards, which will be recorded when it is probable that the performance-based criteria will be met.

2021 Omnibus Incentive Plan

In March 2021, the Compensation Committee of the Board of Directors approved the InnovAge Holding Corp. 2021 Omnibus Incentive Plan (“2021 Omnibus Incentive Plan”), pursuant to which various stock-based awards may be granted to employees, directors, consultants, and advisers. The total number of shares of the Company’s common stock authorized under the 2021 Omnibus Incentive Plan is 14,700,000. The Company has issued time-based restricted stock units under this plan to its employees which generally vest over a three-year period with one-third vesting on each anniversary of the date of grant. Certain other vesting periods have also been used. The grant date fair value of restricted stock units with time-based vesting is based on the closing market price of our common stock on the date of grant. Certain other awards under this plan, including units and stock options, vest upon achieving specific share price performance criteria and are determined to have performance-based vesting conditions. The Company has also issued time-based vesting stock options under this plan to its employees which generally vest in equal parts over a three-year period.

Restricted Stock Units

A summary of time-based vesting restricted stock units activity for the three months ended September 30, 2024 is as follows:


Restricted stock units - time based	Number of awards	Weighted average grant-date fair value per share

Outstanding balance, June 30, 2024	2,864,319	$	8.15
Granted	132,559	$	6.29
Forfeited	(45,846)	$	5.27
Vested	(341,622)	$	5.33
Outstanding balance, September 30, 2024	2,609,410	$	8.47

The total unrecognized compensation cost related to time based restricted stock units outstanding as of September 30, 2024 was $9.1 million and is expected to be recognized over a weighted-average period of 4.2 years.

A summary of performance based vesting restricted stock units activity for the three months ended September 30, 2024 is as follows:


Restricted stock units - performance based	Number of awards	Weighted average grant-date fair value per share

Outstanding balance, June 30, 2024	258,767	$	5.18
Granted	—	$	—
Forfeited	—	$	—
Vested	—	$	—
Outstanding balance, September 30, 2024	258,767	$	5.18

The total unrecognized compensation cost related to performance based vesting restricted stock units outstanding as of September 30, 2024 was $0.3 million and is expected to be recognized over a weighted-average period of 1.3 years.

Nonqualified Stock Options

A summary of time-based vesting stock option activity for the three months ended September 30, 2024 is as follows:


Stock options - time based	Number of awards	Weighted average grant-date fair value per share

Outstanding balance, June 30, 2024	554,499	$	1.77
Granted	—	$	—
Forfeited	—	$	—
Exercised	—	$	—
Expired	—	$	—
Outstanding balance, September 30, 2024	554,499	$	1.77

Exercisable balance, September 30, 2024	381,216	$	0.16

The total unrecognized compensation costs related to time-based vesting stock options outstanding as of September 30, 2024 was $0.07 million and is expected to be recognized over a weighted-average period of 1.6 years.

A summary of performance-based vesting stock option activity for the three months ended September 30, 2024 is as follows:


Stock options - performance based	Number of awards	Weighted average grant-date fair value per share

Outstanding balance, June 30, 2024	776,299	$	3.08
Granted	—	$	—
Forfeited	—	$	—
Vested	—	$	—
Outstanding balance, September 30, 2024	776,299	$	3.08

The total unrecognized compensation cost related to performance-based vesting stock options outstanding as of September 30, 2024 was $0.6 million and is expected to be recognized over a weighted-average period of 1.4 years.

Subsequent Events	3 Months Ended
Subsequent Events	Sep. 30, 2024
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events The Company has evaluated subsequent events through November 5, 2024, the date on which the condensed consolidated financial statements were issued and noted there were none except as disclosed in Note 9, "Commitments and Contingencies".

Stock-based Compensation - Schedule of Restricted Stock Units Activity (Details) $ / shares in Units, $ in Millions	3 Months Ended
	Sep. 30, 2024 USD ($) $ / shares shares
Time Based Restricted Stock Units
Number of awards
Outstanding balance, beginning (in shares) \| shares	2,864,319
Granted (in shares) \| shares	132,559
Forfeited (in shares) \| shares	(45,846)
Vested (in shares) \| shares	(341,622)
Outstanding balance, ending (in shares) \| shares	2,609,410
Weighted average grant-date fair value per share
Outstanding balance, beginning (in dollars per share) \| $ / shares	$ 8.15
Granted (in dollars per share) \| $ / shares	6.29
Forfeited (in dollars per share) \| $ / shares	5.27
Vested (in dollars per share) \| $ / shares	5.33
Outstanding balance, ending (in dollars per share) \| $ / shares	$ 8.47
Unrecognized compensation cost \| $	$ 9.1
Weighted-average period (in years)	4 years 2 months 12 days
Performance Based Restricted Stock Units
Number of awards
Outstanding balance, beginning (in shares) \| shares	258,767
Granted (in shares) \| shares	0
Forfeited (in shares) \| shares	0
Vested (in shares) \| shares	0
Outstanding balance, ending (in shares) \| shares	258,767
Weighted average grant-date fair value per share
Outstanding balance, beginning (in dollars per share) \| $ / shares	$ 5.18
Granted (in dollars per share) \| $ / shares	0
Forfeited (in dollars per share) \| $ / shares	0
Vested (in dollars per share) \| $ / shares	0
Outstanding balance, ending (in dollars per share) \| $ / shares	$ 5.18
Unrecognized compensation cost \| $	$ 0.3
Weighted-average period (in years)	1 year 3 months 18 days

Share Repurchase Program (Details) - USD ($) $ in Millions	3 Months Ended
Share Repurchase Program (Details) - USD ($) $ in Millions	Sep. 30, 2024	Sep. 26, 2024	Jun. 10, 2024
Common Stock
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share repurchase program, number of shares repurchased (in shares)	801,287
Payments for repurchase of common stock	$ 4.8
Shares repurchased at cost (in shares)	800,813
Treasury Stock
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares repurchased at cost (in shares)	800,813
June 2024 Repurchase Program
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share repurchase program, authorized, amount			$ 5.0
September 2024 Repurchase Program
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share repurchase program, authorized, amount		$ 2.5

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

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+ Details

Business	3 Months Ended
Business	Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business	Business InnovAge Holding Corp. and its subsidiaries (“InnovAge” or the "Company") are headquartered in Denver, Colorado. The Company’s participant-centered care delivery approach is designed to improve the quality of care the Company’s participants receive, while keeping them in their homes for as long as safely possible. Through the Company’s Program of All-Inclusive Care for the Elderly (“PACE”) program, the Company fulfills a broad range of medical and ancillary services for seniors, including in-center services such as primary care, physical therapy, occupational therapy, speech therapy, dental services, mental health and psychiatric services, meals, and activities; transportation to and from the PACE center and third-party medical appointments; and care management. The Company manages its business as one reportable segment, PACE. As of September 30, 2024, the Company served approximately 7,210 PACE participants, making it the largest PACE provider in the United States of America (the “U.S.”) based upon participants served, and operated 20 PACE centers across Colorado, California, Florida, New Mexico, Pennsylvania and Virginia. PACE is a fully-capitated managed care program, which serves the frail elderly, and predominantly dual-eligible, population in a community-based service model. We define dual-eligible seniors as individuals who are 55+ and qualify for benefits under both Medicare and Medicaid. InnovAge provides all needed healthcare services through an all-inclusive, coordinated model of care, and the Company is at risk for 100% of healthcare costs incurred with respect to the care of its participants. PACE programs receive capitation payments directly from Medicare Parts C and D, Medicaid, Veterans Administration (“VA”), and private pay sources. Additionally, under the Medicare Prescription Drug Plan, the Centers for Medicare and Medicaid Services (“CMS”) share part of the risk for providing prescription medication to the Company’s participants. The Company’s common stock is traded on the Nasdaq Stock Market LLC (“NASDAQ”) under the ticker symbol “INNV”.

Long-Term Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Jun. 30, 2024
Debt Instrument [Line Items]
Total debt	$ 65,040	$ 65,989
Less: unamortized debt issuance costs	608	716
Less: current maturities	3,795	3,795
Long-term debt, net of debt issuance costs	60,637	61,478
Term Loan Facility
Debt Instrument [Line Items]
Total debt	62,813	63,750
Convertible term loan
Debt Instrument [Line Items]
Total debt	$ 2,227	$ 2,239

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

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+ Details

- Definition

Amount of unamortized debt discount (premium) and debt issuance costs.

+ References + Details

Stock-based Compensation - Schedule of Time-based Awards (Details) - Time-based Options Awards $ / shares in Units, $ in Thousands	3 Months Ended
	Sep. 30, 2024 USD ($) $ / shares shares
Number of awards
Outstanding balance, beginning (in shares) \| shares	554,499
Granted (in shares) \| shares	0
Forfeited (in shares) \| shares	0
Exercised (in shares) \| shares	0
Expired (in shares) \| shares	0
Outstanding balance, ending (in shares) \| shares	554,499
Exercisable balance (in shares) \| shares	381,216
Weighted average grant-date fair value per share
Outstanding balance, beginning (in dollars per share) \| $ / shares	$ 1.77
Granted (in dollars per share) \| $ / shares	0
Forfeited (in dollars per share) \| $ / shares	0
Exercised (in dollars per share) \| $ / shares	0
Expired (in dollars per share) \| $ / shares	0
Outstanding balance, ending (in dollars per share) \| $ / shares	1.77
Exercisable balance (in dollars per share) \| $ / shares	$ 0.16
Unrecognized compensation cost \| $	$ 70
Weighted-average period (in years)	1 year 7 months 6 days

Leases - Schedule of Balance Sheet Classification (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Jun. 30, 2024
Assets:
Operating lease assets	$ 27,385	$ 28,416
Finance lease assets	$ 14,553	$ 15,908
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization	Property, Plant, and Equipment and Finance Lease Right-of-Use Asset, after Accumulated Depreciation and Amortization
Total leased assets	$ 41,938	$ 44,324

Summary of Significant Accounting Policies - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Jun. 30, 2024
Summary of Significant Accounting Policies
Property and equipment, gross	$ 282,452		$ 280,441
Less: accumulated depreciation and amortization	(92,552)		(87,419)
Total property and equipment, net	189,900		193,022
Depreciation	5,200	$ 4,100
Land
Summary of Significant Accounting Policies
Property and equipment, gross	11,970		11,970
Buildings and leasehold improvements
Summary of Significant Accounting Policies
Property and equipment, gross	$ 156,141		156,064
Buildings and leasehold improvements \| Minimum
Summary of Significant Accounting Policies
Estimated Useful Lives	10 years
Buildings and leasehold improvements \| Maximum
Summary of Significant Accounting Policies
Estimated Useful Lives	40 years
Software
Summary of Significant Accounting Policies
Property and equipment, gross	$ 30,980		30,678
Software \| Minimum
Summary of Significant Accounting Policies
Estimated Useful Lives	3 years
Software \| Maximum
Summary of Significant Accounting Policies
Estimated Useful Lives	5 years
Equipment and vehicles
Summary of Significant Accounting Policies
Property and equipment, gross	$ 69,704		69,495
Equipment and vehicles \| Minimum
Summary of Significant Accounting Policies
Estimated Useful Lives	3 years
Equipment and vehicles \| Maximum
Summary of Significant Accounting Policies
Estimated Useful Lives	7 years
Construction in progress
Summary of Significant Accounting Policies
Property and equipment, gross	$ 13,657		$ 12,234

Earnings per Share (Tables)

3 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Schedule of Computation of Basic and Diluted Net Loss Per Common Share

The following table sets forth the computation of basic and diluted net loss per common share:


	Three months ended September 30,
in thousands, except share values	2024		2023
Net loss attributable to InnovAge Holding Corp.	$	(4,929)	$	(10,304)
Weighted average common shares outstanding (basic)	135,769,835		135,790,401
EPS (basic)	$	(0.04)	$	(0.08)

Dilutive shares	—		—
Weighted average common shares outstanding (diluted)	135,769,835		135,790,401
EPS (diluted)	$	(0.04)	$	(0.08)

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2024	Jun. 30, 2024
Current Assets
Cash and cash equivalents	$ 39,019	$ 56,946
Short-term investments	46,659	45,833
Restricted cash	13	14
Accounts receivable, net of allowance ($3,693 – September 30, 2024 and $6,729 – June 30, 2024)	46,735	48,106
Prepaid expenses	22,804	18,919
Income tax receivable	3,324	3,324
Total current assets	158,554	173,142
Noncurrent Assets
Property and equipment, net	189,900	193,022
Operating lease assets	27,385	28,416
Investments	2,645	2,645
Deposits and other	4,913	5,949
Goodwill	139,949	139,949
Other intangible assets, net	4,373	4,538
Total noncurrent assets	369,165	374,519
Total assets	527,719	547,661
Current Liabilities
Accounts payable and accrued expenses	45,849	55,459
Reported and estimated claims	56,443	55,404
Due to Medicaid and Medicare	15,584	15,197
Current portion of long-term debt	3,795	3,795
Current portion of finance lease obligations	5,365	4,599
Current portion of operating lease obligations	4,311	4,145
Total current liabilities	131,347	138,599
Noncurrent Liabilities
Deferred tax liability, net	7,863	7,460
Finance lease obligations	10,853	12,743
Operating lease obligations	24,992	26,275
Other noncurrent liabilities	1,317	1,298
Long-term debt, net of debt issuance costs	60,637	61,478
Total liabilities	237,009	247,853
Commitments and Contingencies (See Note 9)
Redeemable Noncontrolling Interests (See Note 4)	21,657	22,200
Stockholders’ Equity
Common stock, $0.001 par value; 500,000,000 authorized as of September 30, 2024 and June 30, 2024; 136,362,736 issued and 135,538,698 outstanding as of September 30, 2024 and 136,152,858 issued and 136,116,299 outstanding as of June 30, 2024	$ 136	$ 136
Treasury stock at cost (in shares)	837,372	36,559
Treasury stock at cost, 837,372 and 36,559 shares as of September 30, 2024 and June 30, 2024, respectively	$ (5,000)	$ (179)
Additional paid-in capital	339,048	337,615
Retained deficit	(73,240)	(68,311)
Total InnovAge Holding Corp.	260,944	269,261
Noncontrolling interests	8,109	8,347
Total stockholders’ equity	269,053	277,608
Total liabilities and stockholders’ equity	$ 527,719	$ 547,661

Goodwill and Intangible Assets - Narrative (Details)	3 Months Ended
Goodwill and Intangible Assets - Narrative (Details)	Sep. 30, 2024 USD ($) reporting_unit	Sep. 30, 2023 USD ($)	Jun. 30, 2024 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 139,949,000		$ 139,949,000
Number of reporting units \| reporting_unit	2
Impairment loss	$ 0	$ 0
Intangible asset amortization expense	200,000	200,000
Intangible asset impairments	$ 0	$ 0

- Definition

Amount, after accumulated impairment loss, of asset representing future economic benefit arising from other asset acquired in business combination or from joint venture formation or both, that is not individually identified and separately recognized.

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+ Details

Revenue Recognition - Schedule of Disaggregation of Revenue (Details) - Revenue from Contract with Customer Benchmark - Customer Concentration Risk	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Revenue Recognition
Risk percentage	100.00%	100.00%
Medicaid
Revenue Recognition
Risk percentage	55.00%	55.00%
Medicare
Revenue Recognition
Risk percentage	45.00%	45.00%

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Leases - Schedule of Components of Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Component of Lease Cost
Total lease expense	$ 2,918	$ 2,291
Cost of care excluding depreciation and amortization and Corporate, general and administrative
Component of Lease Cost
Operating lease cost	1,535	1,118
Variable lease cost	6	0
Short-term lease cost	22	38
Depreciation and amortization
Component of Lease Cost
Amortization of leased assets	1,355	1,102
Interest expense, net
Component of Lease Cost
Interest on lease liabilities	$ 0	$ 33

Leases

3 Months Ended

Sep. 30, 2024

Leases [Abstract]

Leases

Leasing Arrangements as Lessee

The Company leases certain property and equipment under various third-party operating and finance lease agreements. The Company determines if an arrangement is or contains a lease at the lease inception date by evaluating whether the arrangement conveys the right to use an identified asset and whether the Company obtains substantially all of the economic benefits from and has the ability to direct the use of the asset. The leases are noncancelable and expire on various terms from 2024 through 2037. We determine if an arrangement is a lease upon commencement of the contract. If an arrangement is determined to be a long-term lease (greater than 12 months), we recognize a right-of-use ("ROU") asset and lease liability based on the present value of the future minimum lease payments over the lease term at the commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. Our lease terms may also include options to extend or terminate the lease when it is reasonably certain that we will exercise those options. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term.

We have elected to apply the short-term lease exception for contracts that have a lease term of twelve months or less and do not include an option to purchase the underlying asset. Therefore, we do not recognize a ROU asset or lease liability for such contracts. We recognize short-term lease payments as expense on a straight-line basis over the lease term. Variable lease payments that do not depend on an index or rate are recognized as expense. Certain leases include escalations based on inflation indexes and fair market value adjustments. Operating lease liabilities are calculated using the prevailing index or rate at lease commencement for such leases.

The following table presents the components of our ROU assets and their classification in our Balance Sheet as of:


Component of Lease Balances	Balance Sheet Line Items	September 30, 2024		June 30, 2024
in thousands
Assets:
Operating lease assets	Operating lease assets	$	27,385	$	28,416
Finance lease assets	Property and equipment, net	14,553		15,908
Total leased assets		$	41,938	$	44,324

The following table presents the components of our lease cost and the classification of such costs in our condensed consolidated statements of operations for the three months ended September 30:


		Three Months Ended September 30,
Component of Lease Cost	Statements of Operations Line Items	2024		2023
in thousands
Operating lease cost	Cost of care excluding depreciation and amortization and Corporate, general and administrative	$	1,535	$	1,118
Finance lease expense:
Amortization of leased assets	Depreciation and amortization	1,355		1,102
Interest on lease liabilities	Interest expense, net	—		33
Variable lease cost	Cost of care excluding depreciation and amortization and Corporate, general and administrative	6		—
Short-term lease cost	Cost of care excluding depreciation and amortization and Corporate, general and administrative	22		38
Total lease expense		$	2,918	$	2,291

The following table includes the weighted-average lease terms and discount rates for operating and finance leases as of September 30:


Weighted average remaining lease term:	September 30, 2024	September 30, 2023
Operating leases	7.5 years	7.7 years
Finance leases	3.3 years	3.7 years


Weighted average discount rate:	September 30, 2024		September 30, 2023
Operating leases	6.85	%	6.62	%
Finance leases	7.82	%	7.87	%

The following table includes the future maturities of lease payments for operating leases and finance leases for periods subsequent to September 30, 2024:


in thousands	Operating Lease		Finance Lease		Total
Amount remaining in 2025	$	6,023	$	6,615	$	12,638
2026	5,988		5,389		11,377
2027	5,742		4,514		10,256
2028	4,952		2,461		7,413
2029	4,097		555		4,652
Thereafter	11,582		—		11,582
Total lease payments	38,384		19,534		57,918
Less liability accretion / imputed interest	(9,081)		(3,316)		(12,397)
Total lease liabilities	29,303		16,218		45,521
Less: Current lease liabilities	4,311		5,365		9,676
Total long-term lease liabilities	$	24,992	$	10,853	$	35,845

Leases

Leasing Arrangements as Lessee

The following table presents the components of our ROU assets and their classification in our Balance Sheet as of:


Component of Lease Balances	Balance Sheet Line Items	September 30, 2024		June 30, 2024
in thousands
Assets:
Operating lease assets	Operating lease assets	$	27,385	$	28,416
Finance lease assets	Property and equipment, net	14,553		15,908
Total leased assets		$	41,938	$	44,324

The following table presents the components of our lease cost and the classification of such costs in our condensed consolidated statements of operations for the three months ended September 30:


		Three Months Ended September 30,
Component of Lease Cost	Statements of Operations Line Items	2024		2023
in thousands
Operating lease cost	Cost of care excluding depreciation and amortization and Corporate, general and administrative	$	1,535	$	1,118
Finance lease expense:
Amortization of leased assets	Depreciation and amortization	1,355		1,102
Interest on lease liabilities	Interest expense, net	—		33
Variable lease cost	Cost of care excluding depreciation and amortization and Corporate, general and administrative	6		—
Short-term lease cost	Cost of care excluding depreciation and amortization and Corporate, general and administrative	22		38
Total lease expense		$	2,918	$	2,291

The following table includes the weighted-average lease terms and discount rates for operating and finance leases as of September 30:


Weighted average remaining lease term:	September 30, 2024	September 30, 2023
Operating leases	7.5 years	7.7 years
Finance leases	3.3 years	3.7 years


Weighted average discount rate:	September 30, 2024		September 30, 2023
Operating leases	6.85	%	6.62	%
Finance leases	7.82	%	7.87	%

The following table includes the future maturities of lease payments for operating leases and finance leases for periods subsequent to September 30, 2024:


in thousands	Operating Lease		Finance Lease		Total
Amount remaining in 2025	$	6,023	$	6,615	$	12,638
2026	5,988		5,389		11,377
2027	5,742		4,514		10,256
2028	4,952		2,461		7,413
2029	4,097		555		4,652
Thereafter	11,582		—		11,582
Total lease payments	38,384		19,534		57,918
Less liability accretion / imputed interest	(9,081)		(3,316)		(12,397)
Total lease liabilities	29,303		16,218		45,521
Less: Current lease liabilities	4,311		5,365		9,676
Total long-term lease liabilities	$	24,992	$	10,853	$	35,845

Stock-based Compensation - Schedule of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total stock-based compensation expense	$ 2,161	$ 1,823
Stock options
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total stock-based compensation expense	186	223
Profits interests units
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total stock-based compensation expense	174	376
Restricted stock units
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Total stock-based compensation expense	$ 1,801	$ 1,224

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

Stock-based Compensation - Schedule of Performance-based Awards (Details) - Performance Shares $ / shares in Units, $ in Millions	3 Months Ended
	Sep. 30, 2024 USD ($) $ / shares shares
Number of awards
Outstanding balance, beginning (in shares) \| shares	776,299
Granted (in shares) \| shares	0
Forfeited (in shares) \| shares	0
Vested (in shares) \| shares	0
Outstanding balance, ending (in shares) \| shares	776,299
Weighted average grant-date fair value per share
Outstanding balance, beginning (in dollars per share) \| $ / shares	$ 3.08
Granted (in dollars per share) \| $ / shares	0
Forfeited (in dollars per share) \| $ / shares	0
Vested (in dollars per share) \| $ / shares	0
Outstanding balance, ending (in dollars per share) \| $ / shares	$ 3.08
Unrecognized compensation cost \| $	$ 0.6
Weighted-average period (in years)	1 year 4 months 24 days

Revenue Recognition (Tables)

3 Months Ended

Sep. 30, 2024

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregation of Revenue

The Company disaggregates capitation revenue from the following sources for the three months ended:


	September 30,
	2024		2023
Medicaid	55	%	55	%
Medicare	45	%	45	%

Total	100	%	100	%

Schedule of Concentration of Net Receivable

The concentration of net receivables from participants and third-party payers was as follows:


	September 30, 2024		June 30, 2024
Medicaid	86	%	71	%
Medicare	10	%	22	%
Private pay and other	4	%	7	%
Total	100	%	100	%

Revenue Recognition - Schedule of Concentration of Net Receivable (Details) - Accounts Receivable - Customer Concentration Risk	3 Months Ended	12 Months Ended
	Sep. 30, 2024	Jun. 30, 2024
Revenue Recognition
Risk percentage	100.00%	100.00%
Medicaid
Revenue Recognition
Risk percentage	86.00%	71.00%
Medicare
Revenue Recognition
Risk percentage	10.00%	22.00%
Private pay and other
Revenue Recognition
Risk percentage	4.00%	7.00%

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Cost and Equity Method Investments - Narrative (Details)				1 Months Ended	3 Months Ended				12 Months Ended
	May 28, 2024 USD ($)	May 02, 2024 USD ($)	Mar. 18, 2019 USD ($)	Aug. 31, 2021 USD ($) shares	Sep. 30, 2024 USD ($) investment	Mar. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)	Sep. 30, 2023 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Apr. 02, 2020 USD ($)	Jun. 14, 2019 USD ($)
Debt and Equity Securities, FV-NI [Line Items]
Equity method investments					$ 2,600,000						$ 2,600,000
Number of investments \| investment					1
Observable price changes					$ 0			$ 0
Proceeds from sale of senior housing property		$ 4,800,000
Cash and cash equivalents			$ 9,000,000.0		39,019,000					$ 56,946,000
Land			$ 4,200,000
Redeemable noncontrolling interests					$ 21,700,000					$ 22,200,000
InnovAge Sacramento
Debt and Equity Securities, FV-NI [Line Items]
Percentage of additional membership interest									0.10%
InnovAge Florida PACE – Orlando
Debt and Equity Securities, FV-NI [Line Items]
Cash contributions	$ 26,100,000
Controlling membership interest	90.00%
InnovAge Sacramento
Debt and Equity Securities, FV-NI [Line Items]
Membership interest (as a percent)			59.90%
Pinewood Lodge, LLP (PWD)
Debt and Equity Securities, FV-NI [Line Items]
Proceeds from sale of senior housing property		$ 9,500,000
Variable Interest Entity, Not Primary Beneficiary
Debt and Equity Securities, FV-NI [Line Items]
Maximum exposure amount in VIE								800,000
Cash contributions									$ 100,000
Variable Interest Entity, Not Primary Beneficiary \| Adventist Health System/West Joint Venture
Debt and Equity Securities, FV-NI [Line Items]
Cash contributions			$ 5,800,000
Variable Interest Entity, Not Primary Beneficiary \| Eskaton
Debt and Equity Securities, FV-NI [Line Items]
Cash contributions			$ 3,000,000.0
Variable Interest Entity, Not Primary Beneficiary \| InnovAge Florida PACE – Orlando
Debt and Equity Securities, FV-NI [Line Items]
Cash and cash equivalents	$ 2,900,000
Membership interest (as a percent)	10.00%
Variable Interest Entity, Not Primary Beneficiary \| InnovAge Sacramento \| Adventist Health System/West Joint Venture
Debt and Equity Securities, FV-NI [Line Items]
Membership interest (as a percent)			26.40%
Variable Interest Entity, Not Primary Beneficiary \| InnovAge Sacramento \| Eskaton
Debt and Equity Securities, FV-NI [Line Items]
Membership interest (as a percent)			13.70%
Variable Interest Entity, Primary Beneficiary
Debt and Equity Securities, FV-NI [Line Items]
Partnership interest (as a percent)					0.01%
Jetdoc, Inc.
Debt and Equity Securities, FV-NI [Line Items]
Observable price changes								0
Shares acquired (in shares) \| shares				806,481
Payments to acquire investments				$ 2,000,000.0
Cost method investment, impairment losses						$ 100,000	$ 1,900,000
Dispatch Health Holdings, Inc.
Debt and Equity Securities, FV-NI [Line Items]
Observable price changes					$ 0			$ 0
Maximum exposure to loss of the cost method investments					$ 2,600,000
Dispatch Health Holdings, Inc. \| Series B Preferred Stock
Debt and Equity Securities, FV-NI [Line Items]
Equity securities, FV-NI, current													$ 1,500,000
Dispatch Health Holdings, Inc. \| Series C Preferred Stock
Debt and Equity Securities, FV-NI [Line Items]
Equity securities, FV-NI, current												$ 1,100,000

Summary of Significant Accounting Policies

3 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

The Company described its significant accounting policies in Note 2, “Summary of Significant Accounting Policies” of the Notes to Consolidated Financial Statements in its Annual Report on Form 10-K for the year ended June 30, 2024 (“2024 10-K”). There were no significant changes to those accounting policies during the three months ended September 30, 2024.

Basis of Preparation and Principles of Consolidation

The unaudited interim condensed consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to such regulations. These financial statements have been prepared on a basis consistent with the accounting principles applied for the fiscal year ended June 30, 2024. In the opinion of management, all adjustments (consisting of all normal and recurring adjustments) considered necessary for a fair presentation have been included. The condensed consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries and variable interest entities (“VIEs”) for which it is the primary beneficiary and entities for which it is the controlling interest. All intercompany accounts and transactions have been eliminated in consolidation.

The Company does not have any components of comprehensive income and comprehensive income is equal to net loss reported in the statements of operations for all periods presented.

Property and Equipment

Property and equipment were comprised of the following as of September 30, 2024 and June 30, 2024:


dollars in thousands	Estimated Useful Lives	September 30, 2024		June 30, 2024
Land	N/A	$	11,970	$	11,970
Buildings and leasehold improvements	10 - 40 years	156,141		156,064
Software	3 - 5 years	30,980		30,678
Equipment and vehicles	3 - 7 years	69,704		69,495
Construction in progress	N/A	13,657		12,234
		282,452		280,441
Less: accumulated depreciation and amortization		(92,552)		(87,419)
Total property and equipment, net		$	189,900	$	193,022

Depreciation of $5.2 million and $4.1 million was recorded during the three months ended September 30, 2024 and 2023, respectively.

Recent Accounting Pronouncements Not Yet Adopted

Segment Reporting

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses that are regularly provided to the chief operating decision maker. Additionally, ASU 2023-07 requires that all existing annual segment disclosures be provided on an interim basis and clarifies that single reportable segment entities are subject to the disclosure requirement under Topic 280 in its entirety. ASU 2023-07 will be applied retrospectively and is effective for fiscal years beginning after December 15, 2023 and interim periods beginning after December 15, 2024. The Company is evaluating the impact of ASU 2023-07 on our condensed consolidated financial statements.

Income Taxes

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 requires additional disclosures related to rate reconciliation, income taxes paid, and other disclosures. ASU 2023-09 requires public companies to annually (i) disclose specific categories in the rate reconciliation and (ii) provide additional information for reconciling items that meet a quantitative threshold. Additionally, ASU 2023-09 requires public companies to annually disclose the amount of income taxes paid, disaggregated by federal, state, and foreign taxes, as well as the amount of income taxes paid by individual jurisdiction. For smaller reporting companies, such as us, ASU 2023-09 is effective for annual periods beginning after December 15, 2025. The Company is currently evaluating the impact of ASU 2023-09 on our condensed consolidated financial statements.

We do not expect that any other recently issued accounting guidance will have a significant effect on our condensed consolidated financial statements.

Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Earnings Per Share [Abstract]
Potentially anti-dilutive shares (in shares)	102,985	348,090
Net loss attributable to InnovAge Holding Corp.	$ (4,929)	$ (10,304)
Weighted average common shares outstanding (basic) (in shares)	135,769,835	135,790,401
EPS (basic) (in dollars per share)	$ (0.04)	$ (0.08)
Dilutive shares (in shares)	0	0
Weighted average common shares outstanding (diluted) (in shares)	135,769,835	135,790,401
EPS (diluted) (in dollars per share)	$ (0.04)	$ (0.08)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

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-URI https://asc.fasb.org/1943274/2147480097/470-10-S99-1B

Reference 29: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(B))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480097/470-10-S99-1B

Reference 30: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
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-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iv))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480097/470-10-S99-1B

Reference 31: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(5))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147480097/470-10-S99-1B

Reference 32: http://www.xbrl.org/2003/role/disclosureRef
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Reference 33: http://www.xbrl.org/2003/role/disclosureRef
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Reference 34: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 35: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Section 45
-Paragraph 1A
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482790/220-10-45-1A

Reference 36: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
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-Section 45
-Paragraph 1B
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482790/220-10-45-1B

Reference 37: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 942
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-Paragraph 1
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-URI https://asc.fasb.org/1943274/2147478524/942-220-S99-1

+ Details

Summary of Significant Accounting Policies (Tables)

3 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

Schedule of Property and Equipment

Property and equipment were comprised of the following as of September 30, 2024 and June 30, 2024:


dollars in thousands	Estimated Useful Lives	September 30, 2024		June 30, 2024
Land	N/A	$	11,970	$	11,970
Buildings and leasehold improvements	10 - 40 years	156,141		156,064
Software	3 - 5 years	30,980		30,678
Equipment and vehicles	3 - 7 years	69,704		69,495
Construction in progress	N/A	13,657		12,234
		282,452		280,441
Less: accumulated depreciation and amortization		(92,552)		(87,419)
Total property and equipment, net		$	189,900	$	193,022

Earnings per Share

3 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Earnings per Share

Basic earnings (loss) per share (“EPS”) is computed using the weighted-average number of common shares outstanding during the period. Diluted EPS is computed using the weighted-average number of common shares outstanding during the period, plus the dilutive effect of outstanding options and other equity awards, using the treasury stock method and the average market price of the Company’s common stock during the applicable period. When a loss from continuing operations exists, all dilutive securities and potentially dilutive securities are anti-dilutive and are therefore excluded from the computation of diluted EPS. When net income from continuing operations exists, performance-based units are omitted from the calculation of diluted EPS until it is determined that the performance criteria has been met at the end of the reporting period. For the three months ended September 30, 2024 and 2023, there were 102,985 and 348,090, respectively, performance-based awards excluded from the calculation of diluted EPS.

The following table sets forth the computation of basic and diluted net loss per common share:


	Three months ended September 30,
in thousands, except share values	2024		2023
Net loss attributable to InnovAge Holding Corp.	$	(4,929)	$	(10,304)
Weighted average common shares outstanding (basic)	135,769,835		135,790,401
EPS (basic)	$	(0.04)	$	(0.08)

Dilutive shares	—		—
Weighted average common shares outstanding (diluted)	135,769,835		135,790,401
EPS (diluted)	$	(0.04)	$	(0.08)

Leases (Tables)

3 Months Ended

Sep. 30, 2024

Leases [Abstract]

Schedule of Balance Sheet Classification

The following table presents the components of our ROU assets and their classification in our Balance Sheet as of:


Component of Lease Balances	Balance Sheet Line Items	September 30, 2024		June 30, 2024
in thousands
Assets:
Operating lease assets	Operating lease assets	$	27,385	$	28,416
Finance lease assets	Property and equipment, net	14,553		15,908
Total leased assets		$	41,938	$	44,324

Schedule of Components of Lease Cost

The following table presents the components of our lease cost and the classification of such costs in our condensed consolidated statements of operations for the three months ended September 30:


		Three Months Ended September 30,
Component of Lease Cost	Statements of Operations Line Items	2024		2023
in thousands
Operating lease cost	Cost of care excluding depreciation and amortization and Corporate, general and administrative	$	1,535	$	1,118
Finance lease expense:
Amortization of leased assets	Depreciation and amortization	1,355		1,102
Interest on lease liabilities	Interest expense, net	—		33
Variable lease cost	Cost of care excluding depreciation and amortization and Corporate, general and administrative	6		—
Short-term lease cost	Cost of care excluding depreciation and amortization and Corporate, general and administrative	22		38
Total lease expense		$	2,918	$	2,291

Schedule of Weighted Average Lease Terms and Discount Rates

The following table includes the weighted-average lease terms and discount rates for operating and finance leases as of September 30:


Weighted average remaining lease term:	September 30, 2024	September 30, 2023
Operating leases	7.5 years	7.7 years
Finance leases	3.3 years	3.7 years


Weighted average discount rate:	September 30, 2024		September 30, 2023
Operating leases	6.85	%	6.62	%
Finance leases	7.82	%	7.87	%

Schedule of Future Maturities of Lease Payments for Operating Leases

The following table includes the future maturities of lease payments for operating leases and finance leases for periods subsequent to September 30, 2024:


in thousands	Operating Lease		Finance Lease		Total
Amount remaining in 2025	$	6,023	$	6,615	$	12,638
2026	5,988		5,389		11,377
2027	5,742		4,514		10,256
2028	4,952		2,461		7,413
2029	4,097		555		4,652
Thereafter	11,582		—		11,582
Total lease payments	38,384		19,534		57,918
Less liability accretion / imputed interest	(9,081)		(3,316)		(12,397)
Total lease liabilities	29,303		16,218		45,521
Less: Current lease liabilities	4,311		5,365		9,676
Total long-term lease liabilities	$	24,992	$	10,853	$	35,845

Schedule of Future Maturities of Lease Payments for Finance Leases

The following table includes the future maturities of lease payments for operating leases and finance leases for periods subsequent to September 30, 2024:


in thousands	Operating Lease		Finance Lease		Total
Amount remaining in 2025	$	6,023	$	6,615	$	12,638
2026	5,988		5,389		11,377
2027	5,742		4,514		10,256
2028	4,952		2,461		7,413
2029	4,097		555		4,652
Thereafter	11,582		—		11,582
Total lease payments	38,384		19,534		57,918
Less liability accretion / imputed interest	(9,081)		(3,316)		(12,397)
Total lease liabilities	29,303		16,218		45,521
Less: Current lease liabilities	4,311		5,365		9,676
Total long-term lease liabilities	$	24,992	$	10,853	$	35,845

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Capital Stock	Additional Paid-in Capital	Retained Earnings (Deficit)	Treasury Stock	Noncontrolling Interests
Balances, Beginning (in shares) at Jun. 30, 2023		135,639,845
Balances, Beginning at Jun. 30, 2023	$ 302,092	$ 136	$ 332,107	$ (35,944)	$ 0	$ 5,793
Treasury Stock, Beginning (in shares) at Jun. 30, 2023					0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation (in shares)		347,849
Stock-based compensation	1,823		1,823
Tax withholding related to net share settlements of stock-based compensation awards (in shares)		(102,854)
Tax withholding related to net share settlements of stock-based compensation awards	(614)		(614)
Net loss	(10,392)			(10,304)		(88)
Balances, Ending (in shares) at Sep. 30, 2023		135,884,840
Balances, Ending at Sep. 30, 2023	292,909	$ 136	333,316	(46,248)	$ 0	5,705
Treasury Stock, Ending (in shares) at Sep. 30, 2023					0
Beginning balance at Jun. 30, 2023	12,708
Redeemable non-controlling interests (Temporary Equity)
Net loss	(570)
Ending balance at Sep. 30, 2023	12,138
Redeemable non-controlling interests (Temporary Equity)
Net Income (Loss)	$ (10,962)
Balances, Beginning (in shares) at Jun. 30, 2024	136,116,299	136,116,299
Balances, Beginning at Jun. 30, 2024	$ 277,608	$ 136	337,615	(68,311)	$ (179)	8,347
Treasury Stock, Beginning (in shares) at Jun. 30, 2024	36,559				36,559
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation (in shares)		341,619
Stock-based compensation	$ 2,161		2,161
Tax withholding related to net share settlements of stock-based compensation awards (in shares)		(118,407)
Tax withholding related to net share settlements of stock-based compensation awards	(728)		(728)
Shares repurchased at cost (in shares)		800,813			800,813
Shares repurchased at cost	(4,821)				$ (4,821)
Net loss	$ (5,167)			(4,929)		(238)
Balances, Ending (in shares) at Sep. 30, 2024	135,538,698	135,538,698
Balances, Ending at Sep. 30, 2024	$ 269,053	$ 136	$ 339,048	$ (73,240)	$ (5,000)	$ 8,109
Treasury Stock, Ending (in shares) at Sep. 30, 2024	837,372				837,372
Beginning balance at Jun. 30, 2024	$ 22,200
Redeemable non-controlling interests (Temporary Equity)
Net loss	(543)
Ending balance at Sep. 30, 2024	21,657
Redeemable non-controlling interests (Temporary Equity)
Net Income (Loss)	$ (5,710)

Cost and Equity Method Investments	3 Months Ended
Cost and Equity Method Investments	Sep. 30, 2024
Investments, Debt and Equity Securities [Abstract]
Cost and Equity Method Investments	Cost and Equity Method Investments The Company held cost method investments of $2.6 million as of both September 30, 2024 and June 30, 2024. Nonconsolidated Entities Cost Method Investments The Company maintains one investment that is accounted for using the cost method. The Company's ownership interest is less than 20% of the voting stock of the investment and the Company does not have the ability to exercise significant influence over the operating and financial policies of the investments. The investment does not have a readily determinable fair value and the Company has elected to record the investments at cost, less impairment, if any, plus or minus any changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. During the three months ended September 30, 2024 and 2023, there were no observable price changes or impairment recorded. Jetdoc In August 2021, the Company acquired a minority interest equal to 806,481 shares of the outstanding common stock of Jetdoc, Inc. (“Jetdoc”), a telehealth and virtual urgent care app dedicated to effectively connecting users with medical professionals, for cash consideration of $2.0 million. We determined that indicators of impairment were present as of December 31, 2023, and recognized an impairment loss of $1.9 million during the three months then ended. During the three months ended March 31, 2024, we determined that the remaining balance of our investment in Jetdoc was impaired and recognized an additional impairment loss of $0.1 million. During the three months ended September 30, 2023, there were no observable price changes or impairments recorded. As of September 30, 2024, the Company did not have any ownership interest in Jetdoc. DispatchHealth On June 14, 2019, the Company invested $1.5 million in DispatchHealth Holdings, Inc. ("DispatchHealth"), through the purchase of a portion of its outstanding Series B Preferred Stock. On April 2, 2020, the Company invested an additional $1.1 million through the purchase of a portion of its outstanding Series C Preferred Stock. As of September 30, 2024, the balance of the Company’s investment was $2.6 million, which represents the maximum exposure to loss. The investment does not have a readily determinable fair value and the Company has elected to record the investment at cost, less impairment, if any, plus or minus any changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. During the three months ended September 30, 2024 and 2023, there were no observable price changes or impairments. Equity Method Investments Pinewood Lodge Through May 2, 2024, the Company’s operations included a Senior Housing unit that primarily included the accounts of Continental Community Housing (“CCH”), a wholly-owned subsidiary of the Company and the general partner of Pinewood Lodge, LLLP (“PWD”), which was organized to develop, construct, own, maintain, and operate certain apartment complexes intended for rental to low-income elderly individuals aged 62 or older. PWD was accounted for using the equity method of accounting. As of September 30, 2023, the balance of the Company’s investment in PWD was $0.8 million, which represented the maximum exposure to loss. On March 13, 2024, PWD entered into a Purchase and Sale Agreement for the sale of all of PWD's property, including the Senior Housing unit. On May 2, 2024, PWD closed on the sale of its Senior Housing property for $9.5 million. Upon completion of the sale, PWD ceased providing senior housing services and in June 2024 was dissolved. Following the dissolution, the remaining proceeds from the sale were distributed in accordance with the partnership agreement and as otherwise agreed by the partners. Consolidated Entities Controlling Interest InnovAge Florida PACE – Orlando On May 28, 2024, the Company entered into a joint venture with Orlando Health (“OHI”) to develop and manage PACE centers to serve communities in Orlando, Florida. In connection with the joint venture, OHI, InnovAge Orlando PACE II, LLC ("InnovAge Orlando"), the joint venture, and the Company entered into a Contribution Agreement pursuant to which OHI made a cash contribution of $2.9 million to InnovAge Orlando for a proportionate 10% interest ownership. The Company's total contribution was $26.1 million for its controlling membership interest of 90%. As a result, the joint venture’s results are consolidated in the Company’s condensed consolidated financial statements. Noncontrolling Interest Senior Housing The Company’s operations include a 0.01% partnership interest in InnovAge Senior Housing Thornton, LLC (“SH1”), which was organized to develop, construct, own, maintain, and operate certain apartment complexes intended for rental to low-income elderly individuals aged 62 or older. SH1 is a VIE. The Company is the primary beneficiary of SH1 and consolidates SH1 as it has the power to direct the activities that are most significant to SH1 and has an obligation to absorb losses or the right to receive benefits from SH1. The most significant activity of SH1 is the operation of the senior housing facility. The Company has provided a subordinated loan to SH1 and has provided a guarantee for a convertible term loan held by SH1. Redeemable Noncontrolling Interest InnovAge Sacramento On March 18, 2019, in connection with the formation of InnovAge Sacramento, the joint venture with Adventist Health System/West (“Adventist”) and Eskaton Properties, Incorporated (“Eskaton”), the Company contributed $9.0 million in cash and land valued at $4.2 million for a 59.9% membership interest in the joint venture. Adventist contributed $5.8 million in cash and Eskaton contributed $3.0 million in cash for membership interests of 26.4% and 13.7%, respectively. In fiscal year 2021, the Company made an additional contribution of $0.1 million and obtained an additional 0.1% membership interest in the joint venture, which resulted in the Company obtaining control and consolidating InnovAge Sacramento as of January 1, 2021. The InnovAge California PACE-Sacramento LLC Limited Liability Company Agreement (the “JV Agreement”) includes numerous provisions whereby, if certain conditions are met, the joint venture may be required to purchase, at fair market value, certain members’ interests or certain members may be required to purchase, at fair market value, the interests of certain other members. The Company’s investment in InnovAge Sacramento includes a put right for the noncontrolling interest holders to require the Company to repurchase the interest of the noncontrolling interest holders at fair value, after the initial term of the management services agreement in 2028. As of September 30, 2024, none of the conditions specified in the JV Agreement had been met. Accordingly, these put rights held by the noncontrolling interests of the joint venture are required to be presented as temporary equity and are recorded as redeemable noncontrolling interests on our condensed consolidated balance sheets. As of September 30, 2024 and June 30, 2024, the Company's redeemable noncontrolling interest was recorded at fair value of $21.7 million and $22.2 million, respectively.

Acquisitions

3 Months Ended

Sep. 30, 2024

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

Acquisitions

On December 1, 2023, the Company acquired all of the issued and outstanding membership interests of two California-based PACE programs, ConcertoCare PACE of Bakersfield, LLC and ConcertoHealth PACE of Los Angeles, LLC (collectively "Concerto"), from Perfect Health, Inc. d/b/a ConcertoCare, a tech-enabled, value-based provider of at-home, comprehensive care for seniors and other adults with unmet health and social needs, for $23.9 million. We believe the Concerto acquisition complements our California PACE centers. The acquisition was funded through cash on hand. Results of operations from the acquired centers are included in our condensed consolidated statements of operations for the three months ended September 30, 2024 and were not significant to our results. Costs related to the acquisition during the three months ended September 30, 2024 were insignificant. Acquisition related costs were expensed as incurred and have been recorded in corporate, general and administrative expenses in our condensed consolidated statements of operations.

The Concerto acquisition was accounted for using the purchase method of accounting. The purchase price has been preliminarily allocated to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. During the measurement period, which is up to one year from the acquisition date, we may adjust provisional amounts that were recognized at the acquisition date to reflect new information obtained about facts and circumstances that existed as of the acquisition date. The fair values of assets acquired and liabilities assumed may change as the valuation of intangible assets, working capital adjustments, and overall purchase price allocation are being finalized. Goodwill represents the excess of the purchase price over the fair value of net assets acquired. Goodwill recognized represents the

estimated future economic benefits arising from expected growth opportunities for the Company and is not deductible for income tax purposes.


	Preliminary allocation		Measurement period adjustments		Adjusted allocation
	in thousands

Cash Consideration	$	23,916	$	—	$	23,916
Total Consideration	$	23,916	$	—	$	23,916

Accounts receivable, net	$	563	$	(124)	$	439
Prepaid expenses	330		739		1,069
Property and equipment, net	7,969		—		7,969
Operating lease assets	6,892		923		7,815
Goodwill	17,348		(1,616)		15,732
Deposits and other	343		—		343
Accounts payable and accrued expenses	(353)		78		(275)
Reported and estimated claims	(111)		—		(111)
Operating lease obligations	(8,941)		—		(8,941)
Finance lease obligations	(124)		—		(124)
Fair value of assets and liabilities	$	23,916	$	—	$	23,916

Since the preliminary allocation, we recognized a measurement period adjustment for lease incentives related to tenant improvements. The adjustment resulted in an increase of $0.7 million to prepaid expenses and $0.9 million to operating lease assets, a decrease of $0.1 million to accounts receivable and $0.1 million to accounts payable and accrued expenses, and a corresponding decrease of $1.6 million to goodwill. The Company does not expect any additional adjustments.

Fair Value Measurements

3 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants, at the measurement date. A fair value hierarchy was established that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources outside the reporting entity. Unobservable inputs are inputs that reflect the Company’s own assumptions based on market data and assumptions that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The sensitivity to changes in inputs and their impact on fair value measurements can be significant.

The three levels of inputs that may be used to measure fair value are:

Level 1Unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access at the measurement date

Level 2Quoted prices in markets that are not active or inputs that are observable, either directly or indirectly, for substantially the full term of the assets or liabilities

Level 3Unobservable inputs to the valuation techniques that are significant to the fair value measurements of the assets or liabilities

The following table shows the Company’s cash, cash equivalents and marketable securities by significant investment category as of September 30, 2024 and June 30, 2024:


	September 30, 2024
in thousands	Amortized Cost		Fair Value		Cash and Cash Equivalents		Short- term Investments
Cash	$	27,540	$	27,540	$	27,540	$	—
Level 1
Money market funds	11,479		11,479		11,479		—
Mutual funds	46,151		46,659		—		46,659
Total	$	85,170	$	85,678	$	39,019	$	46,659

	June 30, 2024
in thousands	Amortized Cost		Fair Value		Cash and Cash Equivalents		Short- term Investments
Cash	$	25,793	$	25,793	$	25,793	$	—
Level 1
Money market funds	31,153		31,153		31,153		—
Mutual funds	45,556		45,833		—		45,833
Total	$	102,502	$	102,779	$	56,946	$	45,833

Recurring Measurements

The Company’s investment in InnovAge Sacramento includes a put right for the noncontrolling interest holders to require the Company to repurchase the interest of the noncontrolling interest holders at fair value, after the initial term of the management services agreement in 2028. As a result, at each fiscal period end the Company reports this put right at the greater of (i) carrying value of the redeemable noncontrolling interest or (ii) fair value of the redeemable noncontrolling interest. Because this asset does not have observable inputs, Level 3 inputs are used to measure fair value. The fair value of the redeemable noncontrolling interest is determined utilizing a discounted cash flow model. As of September 30, 2024 and June 30, 2024, the Company’s redeemable noncontrolling interest was recorded at fair value of $21.7 million and $22.2 million, respectively.

There were no transfers in and out of Level 3 during the three months ended September 30, 2024 and 2023. The Company’s policy is to recognize transfers as of the actual date of the event or change in circumstances.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 107
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482078/820-10-55-107

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 820
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-Name Accounting Standards Codification
-Section 55
-Paragraph 100
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482078/820-10-55-100

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
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-Paragraph 2
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

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-Name Accounting Standards Codification
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-Paragraph 2E
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-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
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-Paragraph 6A
-Subparagraph (h)
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-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
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-Topic 820
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-Section 50
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
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-Section 50
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-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482106/820-10-50-2

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 940
-SubTopic 820
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147478119/940-820-50-1

+ Details

Stock-based Compensation - Schedule of Profits Interests Transactions and Number of Units Outstanding (Details)	3 Months Ended
	Sep. 30, 2024 $ / shares shares
Time Vesting Units
Number of units
Outstanding balance, beginning (in shares) \| shares	1,287,113
Granted (in shares) \| shares	0
Forfeited (in shares) \| shares	0
Vested (in shares) \| shares	(379,917)
Outstanding balance, ending (in shares) \| shares	907,196
Weighted average grant date fair value
Outstanding balance, beginning (in dollars per share) \| $ / shares	$ 5.52
Granted (in dollars per share) \| $ / shares	0
Forfeited (in dollars per share) \| $ / shares	0
Vested (in dollars per share) \| $ / shares	1.28
Outstanding balance, ending (in dollars per share) \| $ / shares	$ 7.30
Performance Vesting Units
Number of units
Outstanding balance, beginning (in shares) \| shares	1,371,671
Granted (in shares) \| shares	0
Forfeited (in shares) \| shares	0
Vested (in shares) \| shares	0
Outstanding balance, ending (in shares) \| shares	1,371,671
Weighted average grant date fair value
Outstanding balance, beginning (in dollars per share) \| $ / shares	$ 1.55
Granted (in dollars per share) \| $ / shares	0
Forfeited (in dollars per share) \| $ / shares	0
Vested (in dollars per share) \| $ / shares	0
Outstanding balance, ending (in dollars per share) \| $ / shares	$ 1.55

Stock-based Compensation - Schedule of Time-based Awards (Details) - Time-based Options Awards $ / shares in Units, $ in Thousands	3 Months Ended
	Sep. 30, 2024 USD ($) $ / shares shares
Number of awards
Outstanding balance, beginning (in shares) \| shares	554,499
Granted (in shares) \| shares	0
Forfeited (in shares) \| shares	0
Exercised (in shares) \| shares	0
Expired (in shares) \| shares	0
Outstanding balance, ending (in shares) \| shares	554,499
Exercisable balance (in shares) \| shares	381,216
Weighted average grant-date fair value per share
Outstanding balance, beginning (in dollars per share) \| $ / shares	$ 1.77
Granted (in dollars per share) \| $ / shares	0
Forfeited (in dollars per share) \| $ / shares	0
Exercised (in dollars per share) \| $ / shares	0
Expired (in dollars per share) \| $ / shares	0
Outstanding balance, ending (in dollars per share) \| $ / shares	1.77
Exercisable balance (in dollars per share) \| $ / shares	$ 0.16
Unrecognized compensation cost \| $	$ 70
Weighted-average period (in years)	1 year 7 months 6 days