Cautionary Note About Forward-Looking Statements
Throughout this Annual Report on Form 10-K for the year ended June 30, 2021 (this “Annual Report”), we make “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). This Annual Report contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact included in this Annual Report are forward-looking statements. Forward-looking statements give our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “anticipate,” “estimate,” “expect,” “project,” “plan,” “intend,” “believe,” “may,” “will,” “should,” “can have,” “likely” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. For example, all statements we make relating to our estimated and projected costs, expenditures, cash flows, growth rates and financial results, our plans and objectives for future operations, growth or initiatives, strategies or the expected outcome or impact of pending or threatened litigation are forward-looking statements. All forward-looking statements are subject to risks and uncertainties (many of which may be amplified on account of the novel coronavirus disease (“COVID-19”) pandemic) that may cause actual results to differ materially from those that we expected, including:
| ● | the risk that the cost of providing services will exceed our compensation under PACE; |
| ● | the dependence of our revenues and operations upon a limited number of government payors; |
| ● | the effects of rules governing the Medicare, Medicaid or PACE programs; |
| ● | the risk that our submissions to government payors may contain inaccurate or unsupportable information regarding risk adjustment scores of participants; |
| ● | the impact on our business of non-renewal or termination of capitation agreements with government payors; |
| ● | the impact of state and federal efforts to reduce healthcare spending; |
| ● | the effects of a pandemic, epidemic or outbreak of an infectious disease, including the ongoing outbreak of COVID-19; |
| ● | the effect of our relatively limited operating history as a for-profit company on investors’ ability to evaluate our current business and future prospects; |
| ● | the viability of our growth strategy and our ability to realize expected results; |
| ● | our ability to attract new participants and grow our revenue; |
| ● | reduction in budget appropriations or any other adverse developments in the state of Colorado; |
| ● | our ability to manage our growth effectively, execute our business plan, maintain high levels of service and participant satisfaction and adequately address competitive challenges; |
| ● | our ability to compete in the healthcare industry; |
| ● | the concentration of our presence in Colorado, California, New Mexico, Pennsylvania and Virginia; |
| ● | the impact on our business of an economic downturn; |
| ● | the impact on our business of security breaches, loss of data or other disruptions causing the compromise of sensitive information or preventing us from accessing critical information; |
| ● | the potential adverse impact of inspection, reviews, audits, investigations, legal proceedings, enforcement actions and litigation; |
| ● | our ability to effectively invest in, implement improvements to and properly maintain the uninterrupted operation and data integrity of our information technology and other business systems; |
| ● | our ability to accurately estimate incurred but not reported medical expense or the risk scores of our participants; |
| ● | risks associated with our use of “open-source” software; |
| ● | the impact on our business of the termination of our leases, increases in rent or inability to renew or extend leases; |
| ● | the impact of failures by our suppliers, material price increases on supplies or limitations on our ability to access new technology or medical products; |
| ● | our ability to maintain our corporate culture; |
| ● | the impact of competition for physicians and other clinical personnel and related increases in our labor costs; |
| ● | the impact of negative publicity regarding the managed healthcare industry; |
| ● | the impact of pandemics, such as the COVID-19 pandemic, weather and other factors beyond our control; |
| ● | our ability to maintain and enhance our reputation and brand recognition; |
| ● | our ability to maintain profitability in an environment of increasing expenses; |
| ● | the impact on our business of disruptions in our disaster recovery systems or business continuity planning; |
| ● | changes in accounting principles and guidance, resulting in unfavorable accounting charges or effects; |
| ● | our dependence on our senior management team and other key employees; |
| ● | our ability to attract, retain and contract with highly qualified personnel; and |
| ● | other factors disclosed in the section entitled “Risk Factors” and elsewhere in this Annual Report. |
We derive many of our forward-looking statements from our operating budgets and forecasts, which are based on many detailed assumptions. While we believe that our assumptions are reasonable, we caution that it is very difficult to predict the impact of known factors, and it is impossible for us to anticipate all factors that could affect our actual results. Important factors that could cause actual results to differ materially from our expectations, or cautionary statements, are disclosed under the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this Annual Report. You should evaluate all forward-looking statements made in this Annual Report in the context of these risks and uncertainties.
We caution you that the important factors referenced above may not contain all of the factors that are important to you. In addition, we cannot assure you that we will realize the results or developments we expect or anticipate or, even if substantially realized, that they will result in the consequences or affect us or our operations in the way we expect. The forward-looking statements included in this Annual Report are made only as of the date hereof. We undertake no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.