# EDGAR Filing Document

**Accession Number:** 0001671284
**File Stem:** 0001671284-23-000010
**Filing Date:** 2023-3
**Character Count:** 69228
**Document Hash:** a34b1080552449f9d6c0492aa1ddc013
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001671284-23-000010.hdr.sgml**: 20230301

**ACCESSION NUMBER**: 0001671284-23-000010

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20230228

**ITEM INFORMATION**: Entry into a Material Definitive Agreement

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230301

**DATE AS OF CHANGE**: 20230301

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Bright Health Group Inc.
- **CENTRAL INDEX KEY:** 0001671284
- **STANDARD INDUSTRIAL CLASSIFICATION:** HOSPITAL & MEDICAL SERVICE PLANS [6324]
- **IRS NUMBER:** 474991296
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-40537
- **FILM NUMBER:** 23689646

**BUSINESS ADDRESS:**
- **STREET 1:** 8000 NORMAN CENTER DRIVE
- **STREET 2:** SUITE 900
- **CITY:** MINNEAPOLIS
- **STATE:** MN
- **ZIP:** 55437
- **BUSINESS PHONE:** 612-238-1321

**MAIL ADDRESS:**
- **STREET 1:** 8000 NORMAN CENTER DRIVE
- **STREET 2:** SUITE 900
- **CITY:** MINNEAPOLIS
- **STATE:** MN
- **ZIP:** 55437

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Bright Health Inc.
- **DATE OF NAME CHANGE:** 20160404

?xml version="1.0" ? bhg-20230228

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K** 

**CURRENT REPORT**

**Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934**

Date of Report (date of earliest event reported) February 28, 2023

**Bright Health Group, Inc.** 

**(Exact name of registrant as specified in its charter)**

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| | | |
|:---|:---|:---|
| **Delaware** | 001-40537 | **47-4991296** |
| (State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) |

---

---

| | |
|:---|:---|
| **8000 Norman Center Drive Suite 900, Minneapolis, Minnesota** | **55437** |
| Address of Principal Executive Office | (Zip Code) |

---

**(612) 238-1321** 

Registrant's telephone number, including area code

**Not Applicable**

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

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

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

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

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

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

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| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| **Common Stock, par value $0.0001 per share** | **BHG** | **New York Stock Exchange** |

---

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

Emerging growth company ☐

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

□

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**Item 1.01 Entry into a Material Definitive Agreement.**

On February 28, 2023, Bright Health Group, Inc. ("Bright Health" or the "Company") entered into a limited waiver and consent (the "Waiver") under the Credit Agreement, dated as of March 1, 2021 (as amended by the First Amendment dated as of August 2, 2021, the Second Amendment dated as of November 20, 2021, the Third Amendment dated as of November 8, 2022, and as further amended, supplemented or otherwise modified from time to time prior to the date hereof, the "Credit Agreement"), by and among the Company, JPMorgan Chase Bank, N.A., as administrative agent, and the lenders party thereto. The Waiver, among other matters, provides for a temporary waiver for the period from January 25, 2023 through April 30, 2023 (the "Waiver Period") of compliance with the minimum liquidity covenant set forth in Section 11.12.2 of the Credit Agreement. During the Waiver Period, the Company will be subject to a minimum liquidity covenant of not less than $75 million until March 3, 2023, and not less than $85 million thereafter until the end of the Waiver Period. In addition, during the Waiver Period, the Company will not have access to certain negative covenant baskets and will be subject to additional cash-flow and cash balance reporting requirements. The foregoing description of the Waiver does not purport to be complete and is subject to and qualified in its entirety by reference to the full text of the Waiver, a copy of which is filed as Exhibit 10.1 hereto and incorporated by reference herein.

Any future non-compliance with the covenants under the Credit Agreement or uncertainty of being able to obtain any additional waivers or amendments of the terms of the Credit Agreement may result in the obligations under the Credit Agreement being accelerated.

**Item 2.02. &nbsp;&nbsp;&nbsp;&nbsp;Results of Operations and Financial Condition.**

On March 1, 2023, the Company issued a news release announcing its financial results for the fourth quarter ended December 31, 2022. A copy of the news release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference.

The information in Item 2.02 and Exhibit 99.1 of this Current report on Form 8-K shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall such information and exhibits be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.

**Item 9.01.&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits.**

**(d) Exhibits.**

---

| | |
|:---|:---|
| **Exhibit<br>No.** | **Description** |
| 10.1 | <u>[Limited Waiver and Consent, dated as of February 28, 2023, among Bright Health Group, Inc., the other loan parties party thereto, the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent.](ex101_limitedwaiverandcons.htm)</u> |
| 99.1 | <u>[News Release, dated](ex991_brighthealthgroupinc.htm)[March](ex991_brighthealthgroupinc.htm)[1](ex991_brighthealthgroupinc.htm)[, 202](ex991_brighthealthgroupinc.htm)[3](ex991_brighthealthgroupinc.htm)</u> |
| 104 | The cover page from the Current Report on Form 8-K formatted in Inline XBRL. |

---

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**SIGNATURES**

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

---

| | | | |
|:---|:---|:---|:---|
| | | BRIGHT HEALTH GROUP, INC. | BRIGHT HEALTH GROUP, INC. |
| Date: | March 1, 2023 | By: | /s/ Jeff Craig |
|  |  | Name: | Jeff Craig |
|  |  | Title: | General Counsel and Corporate Secretary |

---

## Exhibit 10.1

**Exhibit 10.1**

LIMITED WAIVER AND CONSENT dated as of February 28, 2023 (this "<u>Waiver</u>"), among BRIGHT HEALTH GROUP, INC. (the "<u>Company</u>"), the other LOAN Parties party hereto, and JPMORGAN CHASE BANK, N.A., in its capacity as administrative agent (the "<u>Administrative Agent</u>").

Reference is made to the Credit Agreement dated as of March 1, 2021 (as amended by the First Amendment dated as of August 2, 2021, the Second Amendment dated as of November 20, 2021, the Third Amendment dated as of November 8, 2022, and as further amended, supplemented or otherwise modified from time to time prior to the date hereof, the "<u>Credit Agreement</u>"), among the Company, the Lenders party thereto and the Administrative Agent. Capitalized terms used and not otherwise defined herein shall have the meanings assigned to them in the Credit Agreement.

By Notice of Default dated February 13, 2023, the Company notified the Administrative Agent of the Company's failure to maintain the Minimum Liquidity as required pursuant to Section 11.12.2 of the Credit Agreement. The Administrative Agent promptly provided such Notice of Default to the Lenders.

The Company has requested, and the Administrative Agent and the Lenders party hereto (which constitute the Required Lenders) agree, in accordance with Section 15.1 of the Credit Agreement, to grant a temporary waiver of compliance with Section 11.12.2 of the Credit Agreement.

NOW, THEREFORE, in consideration of the premises and covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:

**Section 1.<u>Temporary Waiver and Consent</u>**. Subject to the satisfaction of the conditions precedent set forth in Section 4 hereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Other than with respect to Sections 2.1.2(c), 11.4(b)(ii) (except with respect to the sale, transfer or other disposition of DocSquad, LLC which the Required Lenders hereby permit the Company to consummate notwithstanding the foregoing or any of the provisions of Section 11.4(b)(ii) of the Credit Agreement to the contrary) and 12.2.1(b) (except with respect to any Letters of Credit to be issued for the sole purpose of replacing Letters of Credit issued in connection with surety bonds required by the Centers for Medicare and Medicaid Services ("CMS"), such replacement Letters of Credit not to exceed the aggregate amount of issued CMS-required Letters of Credit on the date of this Waiver) of the Credit Agreement, but for all other purposes of the Credit Agreement and the other Loan Documents, the Lenders party hereto hereby grant a one-time waiver during the Waiver Period (as defined below) of any Unmatured Event of Default or Event of Default that may have resulted, or may hereafter result, solely as a result of the failure by the Company to comply with Section 11.12.2 of the Credit Agreement for the period commencing on January 25, 2023 and ending on and including April 30, 2023 (the "<u>Waiver Period</u>") and herby waive, during the Waiver Period only, the requirements of the Company to comply with 11.12.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)In the event that (i) the Company breaches any of the covenants set forth

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in Section 2 hereof during the Waiver Period or (ii) an Event of Default, other than an Event of Default that is waived pursuant to Section 1(a) hereof, occurs, this Waiver (other than Sections 6, 7, 8, 9 and 10) shall automatically terminate and cease to be of any further force and effect without any notice or any other action on the part of the Administrative Agent, any Lender or any other Person.

**Section 2.<u>Covenants</u>**. From and after the Waiver Effective Date and during the Waiver Period, the Company agrees that it will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Minimum Liquidity</u>. Not permit the Minimum Liquidity to be less than (i) $75,000,000 at any time during the period commencing on the Waiver Effective Date and ending on and including March 3, 2023 and (ii) $85,000,000 at any time thereafter during the Waiver Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Certain Baskets Unavailable During Waiver Period</u>. Not, and not permit any Subsidiary to, (i) create, incur or assume or suffer to exist any Debt pursuant to Section 11.1(i) of the Credit Agreement (other than Debt outstanding on the Waiver Effective Date and Debt in an aggregate principal amount not to exceed $10,000,000 at any time outstanding); (ii) create or permit to exist any Liens in an aggregate principal amount pursuant Section 11.2(s) of the Credit Agreement (other than Liens outstanding on the Waiver Effective Date and Liens securing obligations in an aggregate amount not to exceed $5,000,000 at any time outstanding); (iii) make any Restricted Payments pursuant to Sections 11.3(iii) or 11.3(v) of the Credit Agreement (other than Restricted Payments pursuant to such clauses in aggregate amount not to exceed $3,000,000 during the Waiver Period for the purpose of withholding or similar taxes payable or expected to be payable by any future, current or former employee, director, or officer (or any of their respective immediate family members) of the Company or any Subsidiary of the Company in connection with the exercise or vesting of Equity Interests or other equity awards or any repurchases, redemptions, acquisitions, retirements or withholdings of Equity Interests in connection with any exercise of Equity Interests or other equity options or warrants or the vesting of Equity Interests or other equity awards if such Equity Interests represent all or a portion of the exercise price of, or withholding obligation with respect to, such options or, warrants or other Equity Interests or equity awards), (iv) make any Acquisitions under Section 11.4(viii) of the Credit Agreement (other than the Acquisition, approved after the date hereof (including with respect to the terms of any seller financing or earn-out arrangements relating thereto) by prior written consent of Required Lenders, by the Company or one of its Subsidiaries of all or a portion of the Equity Interests of the acquisition target previously and separately identified to the Administrative Agent and the Lenders); or (v) (A) make any Investment pursuant to Section 11.9(d) of the Credit Agreement or (B) make or permit to exist any Investment pursuant to Section 11.9(i) of the Credit Agreement in an aggregate amount at any one time outstanding of more than $2,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Cash Flow Forecast and Budget to Actual Reconciliation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)At or prior to 5:00 p.m., New York time, on March 3, 2023, deliver to the Administrative Agent a preliminary thirteen (13)-week cash flow forecast;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)At or prior to 5:00 p.m., New York time, on each of March 31, 2023 and April 30, 2023, deliver to the Administrative Agent a final thirteen (13)-week cash forecast (including, in the case of the March 31, 2023 forecast, a bridge analysis to the monthly cash flow report provided to the Administrative Agent and the Lenders on January 20, 2023), such forecast to be in customary form and to provide a level of detail substantially similar to forecasts previously delivered to the Administrative Agent and the Lenders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)At or prior to 5:00 p.m., New York time, on each of April 15, 2023 and April 30, 2023, deliver to the Administrative Agent a report in customary form and which provides a level of detail substantially similar to the reports previously delivered to the Administrative Agent and the Lenders, reconciling the Company's actual financial results through each of April 7, 2023 (with respect to the April 15, 2023 report) and April 21, 2023 (with respect to the April 30, 2023 report), respectively, with the projections contained in the thirteen (13)-week cash flow forecast delivered on March 31, 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Cash Balance Report</u>. At or prior to 5:00 p.m., New York time, on each Business Day during the Waiver Period, deliver to the Administrative Agent a report in form reasonably satisfactory to the Administrative Agent setting forth the aggregate amount of Unrestricted Cash of the Loan Parties as of the close of business on the prior Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)<u>Collateral Information</u>. (i) No later than March 3, 2023, deliver to the Administrative Agent an updated Perfection Certificate and bring-down Lien search results for each of the Loan Parties from the Office of the Secretary of State of the jurisdiction of organization of such Loan Party, and (ii) no later than March 15, 2023, deliver to the Administrative Agent a cash management system schematic in form reasonably satisfactory to the Administrative Agent that outlines the Loan Parties' deposit accounts and that specifies how cash flows through such deposit accounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)<u>Waiver Covenant Breach Notice</u>. Promptly after a Responsible Officer of the Company obtains actual knowledge of any breach by the Company of any of the covenants set forth in this Section 2, provide written notice thereof to the Administrative Agent.

**Section 3.<u>Other Agreements.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Regulated Subsidiaries.</u> The Company acknowledges and agrees that, notwithstanding anything to the contrary in the Credit Agreement, and for avoidance of doubt, each of Bright Health Insurance Company of Florida and Bright HealthCare Insurance Company of Texas shall constitute a "Significant Subsidiary" for purposes of (a) Section 13.1(c) of the Credit Agreement and (b) this Waiver and the covenants and agreements set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Receivership, etc.</u> The Company further agrees that the 90-day period specified in Section 13.1(c) shall not apply (i.e., the appointment of a trustee, receiver or other custodian for the Company or any of its Significant Subsidiaries or for a substantial part of the

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property of any thereof shall constitute and immediate Event of Default under the Credit Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Notice of Regulator Action</u>. The Company shall promptly notify the Administrative Agent if any insurance regulator (i) has threatened (in writing) to place the Company or any of its Significant Subsidiaries in receivership or (ii) has otherwise threatened (in writing) to take any material regulatory action in respect of the Company or any of its Significant Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Management Fees</u>. The Company shall use all commercially reasonable efforts (including under available regulatory processes) to timely collect all management fees due to the Company and its Significant Subsidiaries from applicable payors.

**Section 4.<u>Representations and Warranties</u>**. The Company represents and warrants that as of the date hereof and the Waiver Effective Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)After giving effect to this Waiver, the representations and warranties contained in Section IX of the Credit Agreement are true and correct (other than any Unmatured Events of Default or Events of Default that are being waived pursuant to Section 1 hereof) (i) in the case of the representations and warranties qualified as to materiality, in all respects and (ii) otherwise, in all material respects; except in the case of any such representation and warranty that expressly relates to a prior date, in which case such representation and warranty shall be so true and correct on and as of such prior date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)After giving effect to this Waiver, no Unmatured Event of Default or Event of Default has occurred and is continuing (other than any Unmatured Events of Default or Events of Default that are being waived pursuant to Section 1 hereof).

**Section 5.<u>Conditions to Effectiveness</u>**.

This Waiver shall become effective on the first date (the "<u>Waiver Effective Date</u>") on which the Administrative Agent shall have received executed counterparts of this Waiver by (i) the Company, (ii) each of the other Loan Parties, (iii) the Administrative Agent and (iv) the Required Lenders.

The Administrative Agent shall notify the Company and the Lenders of the Waiver Effective Date and such notice shall be conclusive and binding.

**Section 6.<u>Fees and Expenses</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Company agrees to reimburse the Administrative Agent for its reasonable and documented out-of-pocket expenses incurred by it (i) in connection with this Waiver, including the reasonable and documented or invoiced out-of-pocket fees, expenses, disbursements and other charges of Cravath, Swaine & Moore LLP, counsel for the Administrative Agent and (ii) if and when deemed reasonably necessary or appropriate by the Administrative Agent, either prior to or following the expiry of the Waiver Period, the reasonable and documented or invoiced out-of-pocket fees, expenses, disbursements and other charges of one firm of counsel experienced in healthcare regulatory issues in each relevant jurisdiction in which a Significant

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Subsidiary that is an Insurance Subsidiary is formed, incorporated or organized, as reasonably determined by the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)For the avoidance of doubt, the Company agrees to pay, upon receipt of written invoice with reasonable detail, the reasonable and documented fees and out-of-pocket expenses related to any engagement by the Administrative Agent on its own behalf or on behalf of the Lenders of one firm of financial advisors for the Administrative Agent and the Lenders in connection with, as a result of or related to, this Waiver or the events giving rise to this Waiver or any matter arising therefrom, and that such reasonable and documented hourly fees and out-of-pocket expenses are deemed to be out-of-pocket expenses within the scope of Section 15.4.1 of the Credit Agreement; provided that the Company shall not be required to reimburse the Administrative Agent or the Lenders for any "success fee", "transaction-based fee" or similar fee that may be or become payable to any such financial advisor and such fees shall not be deemed to be reasonable out-of-pocket expenses under the scope of Section 15.4.1 of the Credit Agreement.

**Section 7.<u>Counterparts</u>**.

This Waiver may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. The words "execution", "signed", "signature", "delivery", and words of like import in or relating to this Waiver and/or any document to be signed in connection with this Waiver and the transactions contemplated hereby shall be deemed to include Electronic Signatures, deliveries or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be.

**Section 8.<u>Governing Law; Waiver of Right to Trial by Jury, Etc</u>**.

THIS WAIVER AND ANY CLAIM, CONTROVERSY, DISPUTE OR CAUSE OF ACTION ARISING UNDER OR RELATED TO THIS WAIVER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE SUBSTANTIVE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CHOICE OF LAW DOCTRINES. The provisions of Sections 15.4, 15.6, 15.7, 15.15, 15.20 and 15.24 of the Credit Agreement are hereby incorporated by reference as if set forth in full herein, *mutatis mutandis*.

**Section 9.<u>Headings</u>**.

The headings of this Waiver are for purposes of reference only and shall not be deemed to limit, amplify or modify the terms of this Waiver, nor affect the meaning hereof.

**Section 10.<u>Effect of Waiver; References to the Credit Agreement</u>**.

Except as expressly set forth herein, this Waiver shall not by implication or otherwise limit, impair, constitute a waiver of or otherwise affect the rights and remedies of the Administrative Agent or any other Secured Party under the Credit Agreement or any agreement or document relating thereto, and except as expressly provided in this Waiver, shall not alter, modify, amend or in any way affect any of the terms, conditions,

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obligations, covenants or agreements contained in the Credit Agreement or any such other agreement or document, all of which are ratified and affirmed in all respects and shall continue in full force and effect. This Waiver shall not, and shall not be deemed to, establish a custom or course of dealing (including, without limitation, the establishment of a custom or course of dealing requiring the Administrative Agent or any other Secured Parties to notify the Company of (i) any Unmatured Event of Default or Event of Default, (ii) its obligations under the Credit Agreement, or (iii) the exercise of any rights of the Administrative Agent or any other Secured Party under the Credit Agreement, any of the other Loan Documents, or at law and in equity). This Waiver shall constitute a Loan Document for all purposes of the Credit Agreement and the other Loan Documents. On and after the Waiver Effective Date, each reference in the Credit Agreement to "this Agreement", "hereunder", "hereof" or words of like import referring to the Credit Agreement shall mean and be a reference to the Credit Agreement as waived and consented to hereby. Nothing herein shall entitle the Company to a consent to, or a waiver, extension, amendment, modification or other change of, any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any agreement or document relating thereto in any similar or different circumstances.

**Section 11.<u>Conduct of Administrative Agent and Secured Parties; Release of Claims.</u>**

The Borrower and the other Loan Parties, (collectively, the "Releasors"), acknowledge and agree that through the date hereof, each Secured Party has acted in good faith and has conducted itself in a commercially reasonable manner in its relationships with the Releasors in connection with this Agreement and in connection with the Obligations, the Credit Agreement, and the other Loan Documents, and the obligations and liabilities of the Releasors existing thereunder or arising in connection therewith, and the Releasors hereby waive and release any claims to the contrary. The Releasors hereby release, acquit, and forever discharge each Secured Party and its Affiliates (including, without limitation, its parent and its subsidiaries) and their respective officers, directors, employees, agents, attorneys, advisors, successors and assigns, both present and former (collectively, the "Secured Party Affiliates") from any and all manner of losses, costs, defenses, damages, liabilities, deficiencies, actions, causes of action, suits, debts, controversies, damages, judgments, executions, claims, demands, and expenses whatsoever, asserted or unasserted, known or unknown, foreseen or unforeseen, in contract, tort, law or equity (generically, "Claims"), prior to, through, and including this date, that any Releasor has or may have against any Secured Party and/or any Secured Party Affiliate by reason of any action, failure to act, event, statement, accusation, assertion, matter, or thing whatsoever arising from or based on facts occurring prior to the effectiveness of this Waiver that arises out of or is connected to the Loan Documents or the Obligations. Each of the Releasors hereby unconditionally and irrevocably agrees that it will not sue any Secured Party or any Secured Party Affiliate on the basis of any Claim released, remised, and discharged by such Releasor pursuant to this paragraph. If any Releasor violates the foregoing covenant, each Releasor, agrees to pay, in addition to such other damages as any Secured Party or any Secured Party Affiliate may sustain as a result of such violation, all reasonable and documented attorneys' fees and costs incurred by any Secured Party or any Secured Party Affiliate as a result of such violation.

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**<u>Section 12.</u><u>Reaffirmations by Loan Parties.</u>**

Each of the Loan Parties, as debtor, grantor, pledgor, guarantor, assignor, or in any other similar capacity in which such Loan Party grants liens or security interests in its property or acts as a guarantor, hereby (a) ratifies and reaffirms all of its payment and performance obligations, contingent or otherwise, under each of the Loan Documents to which it is a party (after giving effect hereto) and (b) to the extent such Loan Party granted liens on or security interests in any of its property pursuant to any such Loan Document as security for, or guaranteed, the Obligations under the Loan Documents, ratifies and reaffirms such grant of security interests and liens and such guarantee and confirms and agrees that such security interests and liens hereafter secure all of the Obligations.

**[Remainder of page left intentionally blank]**

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IN WITNESS WHEREOF, the parties hereto have caused this Waiver to be duly executed as of the date first above written.

BRIGHT HEALTH GROUP, INC.,

as the Company

By: <u>/s/ Jeff Craig</u> 

Name: Jeff Craig

Title: General Counsel and Corporate Secretary

BRIGHT HEALTH MANAGEMENT, INC.

BRIGHT HEALTH SERVICES, INC.

MEDICAL PRACTICE HOLDING

COMPANY, LLC

BRIGHTHEALTH NETWORKS, LLC

NEUEHEALTH ADVANTAGE ACO, LLC

NEUEHEALTH PREMIER ACO, LLC

NEUEHEALTH PARTNERS, LLC

NEUEHEALTH PARTNERS OF FLORIDA,

LLC

NEUEHEALTH PARTNERS OF

CALIFORNIA, LLC

NEUEHEALTH LLC

DOCSQUAD, LLC

NEUEHEALTH COMMUNITY ACO, LLC

NEUEHEALTH PARTNERS FLORIDA RBE,

LLC

NEUEHEALTH PARTNERS TEXAS RBE,

LLC

as Guarantors

By: <u>/s/ Jeff Craig</u> 

Name: Jeff Craig

Title: Secretary

[Signature Page to Limited Waiver and Consent to Credit Agreement]

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JPMORGAN CHASE BANK, N.A.,

as Administrative Agent and Lender

By: <u>/s/ Joon Hur</u> 

Name: Joon Hur

Title: Executive Director

[Signature Page to Limited Waiver and Consent to Credit Agreement]

------

BARCLAYS BANK PLC,

as Lender

By: <u>/s/ Ronnie Glenn</u> 

Name: Ronnie Glenn

Title: Director

[Signature Page to Limited Waiver and Consent to Credit Agreement]

------

GOLDMAN SACHS LENDING PARTNERS LLC,

as Lender

By: <u>/s/ Keshia Leday</u> 

Name: Keshia Leday

Title: Authorized Signatory

[Signature Page to Limited Waiver and Consent to Credit Agreement]

------

MORGAN STANLEY SENIOR FUNDING, INC.,

as Lender

By: <u>/s/ Roberto Ellinghaus</u> 

Name: Roberto Ellinghaus

Title: Vice President

[Signature Page to Limited Waiver and Consent to Credit Agreement]

------

BANK OF AMERICA, N.A.,

as Lender

By: <u>/s/ Joseph L. Corah</u> 

Name: Joseph L. Corah

Title: Managing Director

[Signature Page to Limited Waiver and Consent to Credit Agreement]

## Exhibit 99.1

**Exhibit 99.1**

![bhglogo_jpegxearningsx0802.jpg](bhglogo_jpegxearningsx0802.jpg)

**BRIGHT HEALTH GROUP REPORTS FOURTH QUARTER AND FULL YEAR 2022 RESULTS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•* Q4'22 Results from Continuing Business: Revenue of $551.4 million, Net Loss of $188.2 million, Adjusted EBITDA Loss of $108.5 million**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Full Year 2022 Results from Continuing Operations: Revenue of $2.4 billion, Net Loss of $638.0 million, Adjusted EBITDA Loss of $233.5 million**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Maintaining expectation for 2023 Adjusted EBITDA profitability**<sup>†</sup>

**MINNEAPOLIS, MN (March 1, 2023) (BUSINESSWIRE)** – Bright Health Group, Inc. ("Bright Health" or the "Company") (NYSE: BHG), the technology enabled, value-driven healthcare company serving aging and underserved consumers with unmet clinical needs, today reported financial results for its fourth quarter and full year ended December 31, 2022.

"The Fourth Quarter and Fiscal Year of 2022 marked a year of significant transition, as we focus on our continuing business, which is anchored by our Consumer Care and Bright HealthCare segments, and successfully exit our ACA insurance business" said Mike Mikan, President and CEO of Bright Health Group. "While we recognize the significant work ahead of us, we have conviction in our go forward strategy. We are taking actions to best position the business for capital efficient, long-term growth as work to build a strong foundation with value-driven care. We are also taking early, but meaningful, steps to refocus and simplify our business, while we are gaining more certainty on the final obligations for our discontinued operations and strengthening our capital position."

"As we continue to expand our refined model, we are confident that the continuing business is well-suited to capitalize on both the market environment as it stands today and the significant future upside of the industry," added Mr. Mikan. "Most importantly, none of this would be possible without our dedicated team. In the face of a challenging year, we are grateful for their unwavering commitment to our mission, making healthcare right, together."

**Key Metrics**

---

| | | |
|:---|:---|:---|
| | **As of December 31,** | **As of December 31,** |
| | **2022** | **2021** |
| **Consumer and Patient Metrics** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Bright HealthCare Commercial Consumers | **1020000** | 610000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Bright HealthCare Medicare Advantage Consumers | **125000** | 117000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Consumer Care Value-Based Consumers | **530000** | 170000 |

---

------

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
| *($ in thousands)* | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| **Financial Metrics** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Revenue | $**551425** | $380223 | $**2412030** | $1513033 |
| &nbsp;&nbsp;&nbsp;&nbsp;Medical Cost Ratio - Bright HealthCare<sup>(1)</sup> | **100.1%** | 96.9% | **93.9%** | 97.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating Cost Ratio | **33.7%** | 49.4% | **26.2%** | 34.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;GAAP Net Loss<sup>(2)</sup> | $**(668561)** | $(816165) | $**(1359880)** | $(1178365) |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted EBITDA (non-GAAP)  | $**(108516)** | $(121071) | $**(233489)** | $(321317) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Medical Cost Ratio for Bright HealthCare for the three months ended December 31, 2022 and 2021, include a 210 basis point and 290 basis point, respectively, unfavorable impact from COVID-19 related costs. Medical Cost Ratio for the twelve months ended December 31, 2022 and 2021, include a 220 basis point and 460 basis point, respectively, unfavorable impact from COVID-19 related costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)The GAAP Net Loss for the twelve months ended December 31, 2022 included EBITDA related adjustments from continuing operations of $404.5 million, and over $180 million of investment impairments, restructuring costs, goodwill and intangibles impairments and other exit related costs related to discontinued operations.

See the table at the end of this release for additional information and a reconciliation of the non-GAAP measure used in the table above.

**Financial Outlook**

For full year 2023, Bright Health Group is providing the following guidance and commentary:

Bright Health Group's 2023 outlook remains consistent with the update provided in January 2023, but the company's expectation for Revenue is now lower due to our finalized accounting treatment on certain value-based care contracts. Operating Cost expectations are unchanged, but is now forecast to be a higher percent of Revenue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Bright Health Group's Enterprise Revenue is expected to be between $2.9 billion and $3.1 billion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On a segment basis, Bright HealthCare Revenue is expected to be greater than $1.8 billion, while Consumer Care Revenue is expected to be between $1.1 billion and $1.3 billion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Enterprise Adjusted Operating Cost Ratio is expected to be between 13% and 14%<sup>†</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Bright Health Group expects to be Adjusted EBITDA profitable in 2023<sup>†</sup>

**Liquidity and Going Concern**

Bright Health Group noted in a Form 8-K filed this morning that during the First Quarter of 2023 the Company breached the minimum liquidity covenant of its credit facility. Bright Health has been working cooperatively with its bank group and, as described in such Form 8-K, has entered into a waiver and amendment to its credit facility which reduced the minimum liquidity requirement until April 30th. As of February 24, 2023, the Company possesses more than $150 million in non-regulated cash, nearly all of which is in cash and cash equivalents. Additionally, the Company had over $2.8 billion of additional cash and short- or long-term investments held by its regulated insurance subsidiaries as of December 31, 2022.

Bright Health Group expects to file its Annual Report on Form 10-K within the next 15 days, which will include a disclosure around substantial doubt of the Company's ability to continue as a "going concern". This is predicated on the Company's ability to obtain additional capital to fund our ongoing operations over the next twelve months. The Bright Health Board of Directors has formed a Special Committee and the Company has hired outside advisors to

------

evaluate options addressing the Company's liquidity position that ensure the best possible outcome for Bright Health.

**Earnings Conference Call**

As previously announced, Bright Health Group will discuss the Company's results, strategy, and outlook on a conference call with investors at 8:00 a.m. Eastern Time today. Bright Health Group will host a live webcast of this conference call which can be accessed from the Investor Relations page of the company's website (investors.brighthealthgroup.com). Following the call, a webcast replay will be available on the same site. This earnings release and the Form 8-K filed March 1, 2023, can be accessed on the Investor Relations page of the Company's website. We routinely post important information on our website, including corporate and investor presentations and financial information. We intend to use our website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Such disclosures will be included in the Investor Relations section of our website. Accordingly, investors should monitor this portion of our website, in addition to following our press releases, U.S. Securities and Exchange Commission ("SEC") filings and public conference calls and webcasts.

**About Bright Health Group**

Bright Health Group is a technology enabled, value-driven healthcare company that organizes and operates networks of affiliate care providers to be successful at managing population risk. We focus on serving aging and underserved consumers that have unmet clinical needs through our Fully Aligned Care Model in Florida, Texas and California, some of the largest markets in healthcare where 26% of the U.S. aging population call home. We believe everyone should have access to personal, affordable, and high-quality healthcare. Our mission is to Make healthcare right. Together. For more information, visit www.brighthealthgroup.com.

**Notes**

<sup>†</sup> Reconciliations of projected Adjusted EBITDA and projected Adjusted Operating Cost Ratio to the most directly comparable GAAP financial measures are not provided because the Company is unable to provide such reconciliations without unreasonable effort. The inability to provide a reconciliation is due to the uncertainty and inherent difficulty predicting the occurrence, the financial impact and the periods in which the non-GAAP adjustments may be recognized. With respect to Adjusted EBITDA, these GAAP measures may include the impact of such items as interest expense, income tax expense, depreciation and amortization, impairment of goodwill or intangible assets, transaction costs, share-based compensation expense, changes in the fair value of equity securities, changes in the fair value of contingent consideration, contract termination costs, restructuring costs; and the tax effect of all such items. Historically, the Company has excluded these items from non-GAAP financial measures. With respect to Adjusted Operating Cost Ratio, these GAAP measures may include the impact of such items as stock-based compensation, changes in the fair value of contingent consideration, contract termination costs, and depreciation and amortization. The Company currently expects to continue to exclude these items in future disclosures of non-GAAP financial measures and may also exclude other items that may arise (collectively, "non-GAAP adjustments"). The decisions and events that typically lead to the recognition of non-GAAP adjustments, such as a decision to exit part of the business, are inherently unpredictable as to if or when they may occur. For the same reasons, the Company is unable to address the probable significance of the unavailable information, which could be material to future results.

**Forward-Looking Statements**

Statements made in this release that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements and should be evaluated as such. Forward-looking statements include information concerning possible or assumed future results of operations, including descriptions of our business plan and strategies. These statements often include words such as "anticipate," "expect," "plan," "believe," "intend," "project," "forecast," "estimates," "projections," "outlook," "ensure," and other similar expressions. These forward-looking statements include any statements regarding our plans and expectations with respect to Bright Health Group, Inc. Such forward-looking statements are subject to various risks, uncertainties and assumptions. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated

------

in these statements. Factors that might materially affect such forward-looking statements include: our ability to continue as a going concern; our ability to comply with the terms of our credit facility, including financial covenants, both during and after any waiver period, and/or obtain any additional waivers of any terms of our credit facility to the extent required; our ability to quickly and efficiently wind down our IFP businesses and MA businesses outside of California; potential disruptions to our business due to our corporate restructuring and resulting headcount reduction; our ability to accurately estimate and effectively manage the costs relating to changes in our businesses offerings and models; a delay or inability to withdraw regulated capital from our subsidiaries; a lack of acceptance or slow adoption of our business model; our ability to retain existing consumers and expand consumer enrollment; our and our Care Partner's abilities to obtain and accurately assess, code, and report risk adjustment factor scores; our ability to contract with care providers and arrange for the provision of quality care; our ability to accurately estimate our medical expenses, effectively manage our costs and claims liabilities or appropriately price our products and charge premiums; our ability to obtain claims information timely and accurately; the impact of the ongoing COVID-19 pandemic on our business and results of operations; the risks associated with our reliance on third-party providers to operate our business; the impact of modifications or changes to the U.S. health insurance markets; our ability to manage the growth of our business; our ability to operate, update or implement our technology platform and other information technology systems; our ability to retain key executives; our ability to successfully pursue acquisitions and integrate acquired businesses; the occurrence of severe weather events, catastrophic health events, natural or man-made disasters, and social and political conditions or civil unrest; our ability to prevent and contain data security incidents and the impact of data security incidents on our members, patients, employees and financial results; our ability to comply with requirements to maintain effective internal controls; our ability to adapt to the new risks associated with our expansion into ACO Reach; and the other factors set forth under the heading "Risk Factors" in the Company's reports on Form 10-K, Form 10-Q, and Form 8-K (including all amendments to those reports) and our other filings with the SEC. Except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason after the date of this release to conform these statements to actual results or changes in our expectations.

###

**Investor Contact:** 

Stephen Hagan

IR@brighthealthgroup.com

**Media Contact:** 

media@brighthealthgroup.com

------

**Bright Health Group, Inc. and Subsidiaries**

**Consolidated Balance Sheets**

*(in thousands, except share and per share data)*

**(Unaudited)**

---

| | | |
|:---|:---|:---|
| | **As of December 31,** | **As of December 31,** |
| | **2022** | **2021** |
| **Assets** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $**466325** | $289283 |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term investments | **13206** | 144477 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net of allowance of $6,098 and $3,417, respectively | **73605** | 98882 |
| &nbsp;&nbsp;&nbsp;&nbsp;Direct contracting performance year receivable | **99181** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Current assets of discontinued operations | **2783474** | 1027345 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaids and other current assets | **134843** | 100213 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total current assets** | **3570634** | 1660200 |
| Other assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term investments | **5401** | 18608 |
| &nbsp;&nbsp;&nbsp;&nbsp;Property, equipment and capitalized software, net | **42596** | 38344 |
| &nbsp;&nbsp;&nbsp;&nbsp;Goodwill | **760078** | 830992 |
| &nbsp;&nbsp;&nbsp;&nbsp;Intangible assets, net | **249083** | 336995 |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term assets of discontinued operations | **—** | 668695 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other non-current assets | **37260** | 44505 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total other assets** | **1094418** | 1938139 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total assets** | $**4665052** | $3598339 |
| **Liabilities, Redeemable Noncontrolling Interests, Redeemable Preferred Stock and Shareholders' Equity (Deficit)** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Medical costs payable | $**411753** | $263187 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | **67854** | 57888 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unearned revenue | **242** | 2585 |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term borrowings | **303947** | 155000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current liabilities of discontinued operations | **2783474** | 1696040 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current liabilities | **121424** | 108849 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total current liabilities** | **3688694** | 2283549 |
| &nbsp;&nbsp;Other liabilities | **36673** | 41263 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities** | **3725367** | 2324812 |
| Redeemable noncontrolling interests | **219758** | 128407 |
| Redeemable Series A preferred stock, $0.0001 par value; 750,000 and — shares authorized in 2022 and 2021, respectively; 750,000 and — shares issued and outstanding in 2022 and 2021, respectively | **747481** |  |
| Redeemable Series B preferred stock, $0.0001 par value; 175,000 shares authorized in 2022 and 2021, respectively; 175,000 and — shares issued and outstanding in 2022 and 2021, respectively | **172936** |  |
| Shareholders' equity (deficit): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock, $0.0001 par value; 3,000,000,000 shares authorized in 2022 and 2021; 630,271,508 and 628,622,872 shares issued and outstanding in 2022 and 2021, respectively | **63** | 63 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | **2972271** | 2861243 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated deficit | **(3156395)** | (1700851) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive (loss) income | **(4429)** | (3335) |
| &nbsp;&nbsp;&nbsp;&nbsp;Treasury stock, at cost, 2,522,148 shares at December 31, 2022 and 2021 | **(12000)** | (12000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total shareholders' equity (deficit)** | **(200490)** | 1145120 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities, redeemable noncontrolling interests, redeemable preferred stock and shareholders' equity (deficit)** | $**4665052** | $3598339 |

---

------

**Bright Health Group, Inc. and Subsidiaries**

**Consolidated Statements of Income (Loss)**

*(in thousands, except share and per share data)*

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Twelve Months Ended December 31,** | **Twelve Months Ended December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| Revenue: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Premium revenue | $**354842** | $398150 | $**1764949** | $1390330 |
| &nbsp;&nbsp;&nbsp;&nbsp;Direct Contracting revenue | **188652** |  | **654087** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Service revenue | **10731** | 11028 | **48013** | 42469 |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment income | **(2800)** | (28955) | **(55019)** | 80234 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total revenue** | **551425** | 380223 | **2412030** | 1513033 |
| Operating expenses: |  |  | **—** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Medical costs | **519291** | 359820 | **2206243** | 1294158 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating costs | **185731** | 187797 | **632030** | 527453 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring charges | **20869** |  | **31739** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Goodwill impairment | **1208** |  | **71225** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Intangible assets impairment | **—** |  | **42611** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | **10402** | 9358 | **50430** | 35049 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total operating expenses** | **737501** | 556975 | **3034278** | 1856660 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Operating loss** | **(186076)** | (176752) | **(622248)** | (343627) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | **6386** | 947 | **12821** | 7230 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other income | **—** |  | **(784)** | (1226) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Loss from continuing operations before income taxes** | **(192462)** | (177699) | **(634285)** | (349631) |
| &nbsp;&nbsp;Income tax (benefit) expense | **(4228)** | (8295) | **3680** | (26521) |
| &nbsp;&nbsp;&nbsp;**Net loss from continuing operations** | **(188234)** | (169404) | **(637965)** | (323110) |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss from discontinued operations, net of tax | **(480327)** | (646761) | **(721915)** | (855255) |
| **Net loss** | $**(668561)** | $(816165) | $**(1359880)** | $(1178365) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net earnings from continuing operations attributable to noncontrolling interests | $**(11012)** | $(1143) | $**(95664)** | $(6497) |
| &nbsp;&nbsp;&nbsp;&nbsp;Series A preferred stock dividend accrued | $**(9806)** | $— | $**(37889)** | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Series B preferred stock dividend accrued | $**(1798)** | $— | $**(1798)** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net loss attributable to Bright Health Group, Inc. common shareholders** | $**(691177)** | $(817308) | $**(1495231)** | $(1184862) |
| **Basic and diluted loss per share attributable to Bright Health Group, Inc. common shareholders** |  |  |  |  |
| Continuing operations | **(0.34)** | (0.27) | **(1.23)** | (0.84) |
| Discontinued operations | **(0.76)** | (1.03) | **(1.15)** | (2.18) |
| Basic and diluted loss per share | **(1.10)** | (1.30) | **(2.38)** | (3.02) |

---

------

**Bright Health Group, Inc. and Subsidiaries**

**Consolidated Statements of Cash Flows**

*(in thousands)*

**(Unaudited)**

---

| | | |
|:---|:---|:---|
| | **Twelve Months Ended December 31,** | **Twelve Months Ended December 31,** |
| | **2022** | **2021** |
| Cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss | $**(1359880)** | $(1184862) |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | **50575** | 35484 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment of intangibles | **49331** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment of goodwill | **75372** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation | **109713** | 68423 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | **2027** | (25654) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized gain on equity securities | **55449** | (80231) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment of investments | **67723** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other, net | **17077** | 20254 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in assets and liabilities, net of acquired assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | **28787** | (32941) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Direct Contracting receivable | **(99181)** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets | **(14744)** | (143463) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Medical cost payable | **279563** | 475461 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risk adjustment payable | **1012720** | 742075 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and other liabilities | **2727** | 192611 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unearned revenue | **(42760)** | 14902 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash provided by operating activities** | **234499** | 82059 |
| Cash flows used in investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of investments | **(1457444)** | (1017588) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sales, paydown, and maturities of investments | **1055479** | 926901 |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of property and equipment | **(27448)** | (30414) |
| &nbsp;&nbsp;&nbsp;&nbsp;Business acquisitions, net of cash acquired | **(310)** | (431791) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash used in investing activities** | **(429723)** | (552892) |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of preferred stock | **920417** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of common stock | **1315** | 11390 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net proceeds from short-term borrowings | **148947** | 155000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments for debt issuance costs | **—** | (3391) |
| &nbsp;&nbsp;&nbsp;&nbsp;Distribution to noncontrolling interest holders | **(4311)** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from IPO | **—** | 887328 |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments for IPO offering costs | **—** | (6686) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash provided by financing activities** | **1066368** | 1043641 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net increase in cash and cash equivalents** | **871144** | 572808 |
| Cash and cash equivalents – beginning of year | **1061179** | 488371 |
| Cash and cash equivalents – end of year | $**1932323** | $1061179 |

---

------

**Bright Health Group, Inc. and Subsidiaries**

**Segment Information**

*(in thousands)*

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| ***Bright HealthCare*** | **Three Months Ended** | **Three Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
| *($ in thousands)* | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
| **Statements of income (loss) data:** | **2022** | **2021** | **2022** | **2021** |
| Bright HealthCare: |  |  |  |  |
| Revenue: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premium revenue | **393200** | 367910 | **1652045** | 1297273 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment income | **328** | (185) | **410** | (80) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | **393528** | 367725 | **1652455** | 1297193 |
| Operating expenses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Medical costs | **393406** | 356591 | **1550934** | 1262407 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating costs | **59715** | 70491 | **187191** | 189648 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill impairment | **—** |  | **70017** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | **4411** | 4342 | **17702** | 14245 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | **457532** | 431424 | **1826289** | 1466300 |
| **Operating loss** | $**(64004)** | $(63699) | $**(173834)** | $(169107) |
| Medical Cost Ratio (MCR) | **100.1%** | 96.9% | **93.9%** | 97.3% |

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| | | | | |
|:---|:---|:---|:---|:---|
| ***Consumer Care*** | **Three Months Ended** | **Three Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
| *($ in thousands)* | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
| **Statements of income (loss) data:** | **2022** | **2021** | **2022** | **2021** |
| Consumer Care |  |  |  |  |
| Revenue: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premium revenue | $**168063** | $116418 | $**1141936** | $338391 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Direct Contracting revenue | **188652** |  | **654087** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Service revenue | **10731** | 11028 | **48013** | 42469 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment income | **(3128)** | (28770) | **(55429)** | 80314 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenue | **364318** | 98676 | **1788607** | 461174 |
| Operating expenses: |  |  | **—** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Medical costs | **476316** | 221143 | **1844578** | 432318 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating costs | **57799** | 39155 | **189586** | 125444 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill impairment | **1208** |  | **1208** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intangible assets impairment | **—** |  | **42611** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | **3680** | 3971 | **24252** | 18333 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | **539003** | 264269 | **2104351** | 576095 |
| **Operating loss** | $**(174685)** | $(165593) | $**(315744)** | $(114921) |

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**Non-GAAP Financial Measures**

We use the non-GAAP financial measure Adjusted EBITDA. We define Adjusted EBITDA as Net Loss excluding loss from discontinued operations, Interest Expense, Income Taxes, Depreciation and Amortization, adjusted for the impact of impairment of goodwill or intangible assets, acquisition and financing-related transaction costs, share-based compensation, changes in the fair value of contingent consideration, changes in the fair value of equity securities, contract termination costs and restructuring costs. This non-GAAP measure has been presented in this quarterly Earnings Release as a supplemental measure of financial performance that is not required by or presented in accordance with GAAP because we believe it assists management and investors in comparing our operating performance across reporting periods on a consistent basis by excluding and including items that we do not believe are indicative of our core operating performance. Management believes this measure is useful to investors in highlighting trends in our operating performance, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which we operate and capital investments. Management uses Adjusted EBITDA to supplement GAAP measures of performance in the evaluation of the effectiveness of our business strategies, to make budgeting decisions, to establish discretionary annual incentive compensation and to compare our performance against that of other peer companies using similar measures. Management supplements GAAP results with non-GAAP financial measures to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone.

Adjusted EBITDA is not a recognized term under GAAP and should not be considered as an alternative to Net Income (Loss) as a measure of financial performance or any other performance measure derived in accordance with GAAP. Additionally, Adjusted EBITDA is not intended to be a measure of free cash flow available for management's discretionary use as it does not consider certain cash requirements such as interest payments, tax payments and debt service requirements. The presentation of Adjusted EBITDA has limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Because not all companies use identical calculations, the presentation of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company.

The following table provides a reconciliation of net loss to Adjusted EBITDA for the periods presented:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended <br>December 31,** | **Three Months Ended <br>December 31,** | **Twelve Months Ended <br>December 31,** | **Twelve Months Ended <br>December 31,** |
|<br>*($ in thousands)* | **2022** | **2021** | **2022** | **2021** |
| **Net loss** | $**(668561)** | $(813375) | $**(1359880)** | $(1178365) |
| &nbsp;&nbsp;&nbsp;Loss from discontinued operations <sup>(a)</sup> | **480327** | 646762 | **721915** | 855255 |
| &nbsp;&nbsp;&nbsp;EBITDA adjustments from continuing operations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense | **6386** | 948 | **12821** | 7230 |
| &nbsp;&nbsp;&nbsp;Income tax (benefit) expense | **(4228)** | (8296) | **3680** | (26521) |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | **10402** | 9358 | **50430** | 35049 |
| &nbsp;&nbsp;&nbsp;Goodwill impairment | **1208** |  | **71225** |  |
| &nbsp;&nbsp;&nbsp;Intangible assets impairment | **—** |  | **42611** |  |
| &nbsp;&nbsp;&nbsp;Transaction costs <sup>(b)</sup> | **1407** | (4854) | **1661** | 2064 |
| &nbsp;&nbsp;&nbsp;Share-based compensation expense <sup>(c)</sup> | **32450** | 25190 | **109713** | 68423 |
| &nbsp;&nbsp;&nbsp;Change in fair value of equity securities <sup>(d)</sup> | **10892** | 28780 | **80231** | (80231) |
| &nbsp;&nbsp;&nbsp;Change in fair value of contingent consideration <sup>(e)</sup> | **332** | (5584) | **332** | (4221) |
| &nbsp;&nbsp;&nbsp;Contract termination costs <sup>(f)</sup> | **—** |  | **1241** |  |
| &nbsp;&nbsp;&nbsp;Restructuring costs <sup>(g)</sup> | **20869** |  | **30531** |  |
| &nbsp;&nbsp;&nbsp;**EBITDA adjustments from continuing operations** | **79718** | **45542** | **404476** | **1793** |
| **Adjusted EBITDA** | $**(108516)** | $(121071) | $**(233489)** | $(321317) |

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(a)Beginning in fourth quarter of 2022, Adjusted EBITDA excludes the impact of discontinued operations. The comparable period in 2021 has been recast to exclude these impacts. Represents losses associated with the Commercial business segment that we exited at the end of 2022. The loss from discontinued operations includes over $165 million and over $180 million of investment impairments, restructuring costs, goodwill and intangibles impairments and other exit related costs for the three and twelve months ended December 31, 2022, respectively.

(b)Transaction costs include accounting, tax, valuation, consulting, legal and investment banking fees directly relating to business combinations and certain costs associated with our initial public offering. These costs can vary from period to period and impact comparability, and we do not believe such transaction costs reflect the ongoing performance of our business.

(c)Represents non-cash compensation expense related to stock option and restricted stock unit award grants, which can vary from period to period based on a number of factors, including the timing, quantity and grant date fair value of the awards.

(d)Beginning in 2022, Adjusted EBITDA excludes the impact of changes in unrealized gains and losses on equity securities. The comparable period in 2021 has been recast to exclude changes in unrealized gains and losses on equity securities.

(e)Represents the non-cash change in fair value of contingent consideration from business combinations, which is remeasured at fair value each reporting period.

(f)Represents amounts paid for early termination of existing vendor contracts.

(g)Restructuring costs represent severance costs as part of a workforce reduction in 2022 and impairment of certain long-lived assets relating to our decision to exit the Commercial business for the 2023 plan year.

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