onem-20210930
false2021Q30001404123--12-31P10Y12P3Y0M0D00014041232021-01-012021-09-30xbrli:shares00014041232021-10-25iso4217:USD00014041232021-09-3000014041232020-12-31iso4217:USDxbrli:shares0001404123onem:MedicareRevenueMember2021-07-012021-09-300001404123onem:MedicareRevenueMember2020-07-012020-09-300001404123onem:MedicareRevenueMember2021-01-012021-09-300001404123onem:MedicareRevenueMember2020-01-012020-09-300001404123onem:CommercialRevenueMember2021-07-012021-09-300001404123onem:CommercialRevenueMember2020-07-012020-09-300001404123onem:CommercialRevenueMember2021-01-012021-09-300001404123onem:CommercialRevenueMember2020-01-012020-09-3000014041232021-07-012021-09-3000014041232020-07-012020-09-3000014041232020-01-012020-09-300001404123us-gaap:RedeemableConvertiblePreferredStockMember2020-12-310001404123us-gaap:CommonStockMember2020-12-310001404123us-gaap:AdditionalPaidInCapitalMember2020-12-310001404123us-gaap:RetainedEarningsMember2020-12-310001404123us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001404123us-gaap:ParentMember2020-12-310001404123us-gaap:NoncontrollingInterestMember2020-12-310001404123us-gaap:AdditionalPaidInCapitalMemberus-gaap:AccountingStandardsUpdate202006Membersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2020-12-310001404123us-gaap:AccountingStandardsUpdate202006Membersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:RetainedEarningsMember2020-12-310001404123us-gaap:AccountingStandardsUpdate202006Membersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:ParentMember2020-12-310001404123us-gaap:AccountingStandardsUpdate202006Membersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2020-12-310001404123srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:RetainedEarningsMemberus-gaap:AccountingStandardsUpdate201613Member2020-12-310001404123srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:ParentMemberus-gaap:AccountingStandardsUpdate201613Member2020-12-310001404123srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:AccountingStandardsUpdate201613Member2020-12-310001404123us-gaap:CommonStockMember2021-01-012021-03-310001404123us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310001404123us-gaap:ParentMember2021-01-012021-03-3100014041232021-01-012021-03-310001404123us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310001404123us-gaap:RetainedEarningsMember2021-01-012021-03-310001404123us-gaap:RedeemableConvertiblePreferredStockMember2021-03-310001404123us-gaap:CommonStockMember2021-03-310001404123us-gaap:AdditionalPaidInCapitalMember2021-03-310001404123us-gaap:RetainedEarningsMember2021-03-310001404123us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310001404123us-gaap:ParentMember2021-03-310001404123us-gaap:NoncontrollingInterestMember2021-03-3100014041232021-03-310001404123us-gaap:CommonStockMember2021-04-012021-06-300001404123us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-300001404123us-gaap:ParentMember2021-04-012021-06-3000014041232021-04-012021-06-300001404123us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-300001404123us-gaap:RetainedEarningsMember2021-04-012021-06-300001404123us-gaap:RedeemableConvertiblePreferredStockMember2021-06-300001404123us-gaap:CommonStockMember2021-06-300001404123us-gaap:AdditionalPaidInCapitalMember2021-06-300001404123us-gaap:RetainedEarningsMember2021-06-300001404123us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300001404123us-gaap:ParentMember2021-06-300001404123us-gaap:NoncontrollingInterestMember2021-06-3000014041232021-06-300001404123us-gaap:CommonStockMember2021-07-012021-09-300001404123us-gaap:AdditionalPaidInCapitalMember2021-07-012021-09-300001404123us-gaap:ParentMember2021-07-012021-09-300001404123us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-300001404123us-gaap:RetainedEarningsMember2021-07-012021-09-300001404123us-gaap:RedeemableConvertiblePreferredStockMember2021-09-300001404123us-gaap:CommonStockMember2021-09-300001404123us-gaap:AdditionalPaidInCapitalMember2021-09-300001404123us-gaap:RetainedEarningsMember2021-09-300001404123us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-300001404123us-gaap:ParentMember2021-09-300001404123us-gaap:NoncontrollingInterestMember2021-09-300001404123us-gaap:RedeemableConvertiblePreferredStockMember2019-12-310001404123us-gaap:CommonStockMember2019-12-310001404123us-gaap:AdditionalPaidInCapitalMember2019-12-310001404123us-gaap:RetainedEarningsMember2019-12-310001404123us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310001404123us-gaap:ParentMember2019-12-310001404123us-gaap:NoncontrollingInterestMember2019-12-3100014041232019-12-310001404123us-gaap:RedeemableConvertiblePreferredStockMember2020-01-012020-03-310001404123us-gaap:ParentMember2020-01-012020-03-3100014041232020-01-012020-03-310001404123us-gaap:CommonStockMember2020-01-012020-03-310001404123us-gaap:AdditionalPaidInCapitalMember2020-01-012020-03-310001404123us-gaap:IPOMember2020-01-012020-03-310001404123us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-03-310001404123us-gaap:RetainedEarningsMember2020-01-012020-03-310001404123us-gaap:NoncontrollingInterestMember2020-01-012020-03-310001404123us-gaap:RedeemableConvertiblePreferredStockMember2020-03-310001404123us-gaap:CommonStockMember2020-03-310001404123us-gaap:AdditionalPaidInCapitalMember2020-03-310001404123us-gaap:RetainedEarningsMember2020-03-310001404123us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-310001404123us-gaap:ParentMember2020-03-310001404123us-gaap:NoncontrollingInterestMember2020-03-3100014041232020-03-310001404123us-gaap:AdditionalPaidInCapitalMember2020-04-012020-06-300001404123us-gaap:ParentMember2020-04-012020-06-3000014041232020-04-012020-06-300001404123us-gaap:CommonStockMember2020-04-012020-06-300001404123us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-04-012020-06-300001404123onem:ThreePercentConvertibleSeniorNotesDueInTwoThousandAndTwentyFiveMember2020-04-012020-06-300001404123us-gaap:NoncontrollingInterestMember2020-04-012020-06-300001404123us-gaap:RetainedEarningsMember2020-04-012020-06-300001404123us-gaap:RedeemableConvertiblePreferredStockMember2020-06-300001404123us-gaap:CommonStockMember2020-06-300001404123us-gaap:AdditionalPaidInCapitalMember2020-06-300001404123us-gaap:RetainedEarningsMember2020-06-300001404123us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-300001404123us-gaap:ParentMember2020-06-300001404123us-gaap:NoncontrollingInterestMember2020-06-3000014041232020-06-300001404123us-gaap:CommonStockMember2020-07-012020-09-300001404123us-gaap:AdditionalPaidInCapitalMember2020-07-012020-09-300001404123us-gaap:ParentMember2020-07-012020-09-300001404123us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-07-012020-09-300001404123us-gaap:RetainedEarningsMember2020-07-012020-09-300001404123us-gaap:NoncontrollingInterestMember2020-07-012020-09-300001404123us-gaap:RedeemableConvertiblePreferredStockMember2020-09-300001404123us-gaap:CommonStockMember2020-09-300001404123us-gaap:AdditionalPaidInCapitalMember2020-09-300001404123us-gaap:RetainedEarningsMember2020-09-300001404123us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-09-300001404123us-gaap:ParentMember2020-09-300001404123us-gaap:NoncontrollingInterestMember2020-09-3000014041232020-09-300001404123srt:MinimumMember2021-01-012021-09-300001404123srt:MaximumMember2021-01-012021-09-30xbrli:pure0001404123us-gaap:CustomerConcentrationRiskMemberonem:CustomerEMemberus-gaap:AccountsReceivableMember2020-01-012020-12-310001404123onem:CustomerFMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:AccountsReceivableMember2021-01-012021-09-300001404123onem:CustomerFMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:AccountsReceivableMember2020-01-012020-12-310001404123onem:CustomerHMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:AccountsReceivableMember2021-01-012021-09-300001404123onem:CustomerHMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:AccountsReceivableMember2020-01-012020-12-310001404123onem:CustomerIMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:AccountsReceivableMember2021-01-012021-09-300001404123us-gaap:SalesRevenueNetMemberonem:CustomerAMemberus-gaap:CustomerConcentrationRiskMember2020-07-012020-09-300001404123us-gaap:SalesRevenueNetMemberonem:CustomerAMemberus-gaap:CustomerConcentrationRiskMember2021-01-012021-09-300001404123us-gaap:SalesRevenueNetMemberonem:CustomerAMemberus-gaap:CustomerConcentrationRiskMember2020-01-012020-09-300001404123us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMemberonem:CustomerEMember2020-01-012020-09-300001404123us-gaap:SalesRevenueNetMemberonem:CustomerFMemberus-gaap:CustomerConcentrationRiskMember2020-07-012020-09-300001404123us-gaap:SalesRevenueNetMemberonem:CustomerFMemberus-gaap:CustomerConcentrationRiskMember2021-01-012021-09-300001404123us-gaap:SalesRevenueNetMemberonem:CustomerFMemberus-gaap:CustomerConcentrationRiskMember2020-01-012020-09-300001404123us-gaap:SalesRevenueNetMemberonem:CustomerIMemberus-gaap:CustomerConcentrationRiskMember2021-07-012021-09-300001404123onem:CapitatedMedicareRevenueMember2021-01-012021-09-300001404123us-gaap:AccountingStandardsUpdate202006Membersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2021-01-010001404123us-gaap:AccountingStandardsUpdate202006Membersrt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember2021-01-010001404123us-gaap:AccountingStandardsUpdate202006Memberonem:DebtEquityComponentMemberonem:ConvertibleSeniorNotesDueTwoThousandAndTwentyFiveMember2021-07-012021-09-300001404123us-gaap:AccountingStandardsUpdate202006Memberonem:DebtEquityComponentMemberonem:ConvertibleSeniorNotesDueTwoThousandAndTwentyFiveMember2021-01-012021-09-300001404123srt:MinimumMemberonem:PCsMemberus-gaap:VariableInterestEntityPrimaryBeneficiaryMember2021-01-012021-09-300001404123onem:PCsMemberus-gaap:VariableInterestEntityPrimaryBeneficiaryMembersrt:MaximumMember2021-01-012021-09-300001404123onem:PCsMemberus-gaap:VariableInterestEntityPrimaryBeneficiaryMember2021-01-012021-09-300001404123onem:PCsMemberus-gaap:VariableInterestEntityPrimaryBeneficiaryMember2021-09-300001404123onem:PCsMemberus-gaap:VariableInterestEntityPrimaryBeneficiaryMember2020-12-310001404123us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMember2021-09-300001404123us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel2Member2021-09-300001404123us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MoneyMarketFundsMember2021-09-300001404123us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2021-09-300001404123us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2021-09-300001404123us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2021-09-300001404123us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2021-09-300001404123us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-09-300001404123us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignGovernmentDebtMemberus-gaap:FairValueInputsLevel1Member2021-09-300001404123us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignGovernmentDebtMemberus-gaap:FairValueInputsLevel2Member2021-09-300001404123us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignGovernmentDebtMemberus-gaap:FairValueInputsLevel3Member2021-09-300001404123us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignGovernmentDebtMember2021-09-300001404123us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel1Member2021-09-300001404123us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel2Member2021-09-300001404123us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel3Member2021-09-300001404123us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMember2021-09-300001404123us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2021-09-300001404123us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2021-09-300001404123us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2021-09-300001404123us-gaap:FairValueMeasurementsRecurringMember2021-09-300001404123us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMember2020-12-310001404123us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel2Member2020-12-310001404123us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MoneyMarketFundsMember2020-12-310001404123us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2020-12-310001404123us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel1Member2020-12-310001404123us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel2Member2020-12-310001404123us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel3Member2020-12-310001404123us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMember2020-12-310001404123us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2020-12-310001404123us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-12-310001404123us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2020-12-310001404123us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001404123us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember2020-12-310001404123us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMemberus-gaap:FairValueInputsLevel2Member2020-12-310001404123us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember2020-12-310001404123us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember2020-12-310001404123us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel1Member2020-12-310001404123us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel2Member2020-12-310001404123us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel3Member2020-12-310001404123us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommercialPaperMember2020-12-310001404123us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2020-12-310001404123us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-12-310001404123us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2020-12-310001404123us-gaap:FairValueMeasurementsRecurringMember2020-12-310001404123onem:ThreePercentConvertibleSeniorNotesDueInTwoThousandAndTwentyFiveMember2021-09-300001404123onem:ThreePercentConvertibleSeniorNotesDueInTwoThousandAndTwentyFiveMember2020-12-310001404123us-gaap:MoneyMarketFundsMember2021-09-300001404123us-gaap:USTreasurySecuritiesMember2021-09-300001404123us-gaap:ForeignGovernmentDebtMember2021-09-300001404123us-gaap:CommercialPaperMember2021-09-300001404123us-gaap:MoneyMarketFundsMember2020-12-310001404123us-gaap:CommercialPaperMember2020-12-310001404123us-gaap:CashEquivalentsMember2020-12-310001404123us-gaap:USTreasurySecuritiesMember2020-12-310001404123us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember2020-12-310001404123us-gaap:CommercialPaperMember2020-12-310001404123onem:CapitatedMedicareRevenueMember2021-07-012021-09-300001404123onem:CapitatedMedicareRevenueMember2020-07-012020-09-300001404123onem:CapitatedMedicareRevenueMember2020-01-012020-09-300001404123onem:FeeForServiceAndOtherMedicareRevenueMember2021-07-012021-09-300001404123onem:FeeForServiceAndOtherMedicareRevenueMember2020-07-012020-09-300001404123onem:FeeForServiceAndOtherMedicareRevenueMember2021-01-012021-09-300001404123onem:FeeForServiceAndOtherMedicareRevenueMember2020-01-012020-09-300001404123onem:PartnershipRevenueMember2021-07-012021-09-300001404123onem:PartnershipRevenueMember2020-07-012020-09-300001404123onem:PartnershipRevenueMember2021-01-012021-09-300001404123onem:PartnershipRevenueMember2020-01-012020-09-300001404123onem:NetFeeForServiceRevenueMember2021-07-012021-09-300001404123onem:NetFeeForServiceRevenueMember2020-07-012020-09-300001404123onem:NetFeeForServiceRevenueMember2021-01-012021-09-300001404123onem:NetFeeForServiceRevenueMember2020-01-012020-09-300001404123onem:MembershipRevenueMember2021-07-012021-09-300001404123onem:MembershipRevenueMember2020-07-012020-09-300001404123onem:MembershipRevenueMember2021-01-012021-09-300001404123onem:MembershipRevenueMember2020-01-012020-09-300001404123onem:GrantIncomeMember2021-07-012021-09-300001404123onem:GrantIncomeMember2020-07-012020-09-300001404123onem:GrantIncomeMember2021-01-012021-09-300001404123onem:GrantIncomeMember2020-01-012020-09-300001404123onem:NetFeeForServiceRevenueMemberonem:CommercialAndGovernmentThirdPartyPayersMember2021-07-012021-09-300001404123onem:NetFeeForServiceRevenueMemberonem:CommercialAndGovernmentThirdPartyPayersMember2020-07-012020-09-300001404123onem:NetFeeForServiceRevenueMemberonem:CommercialAndGovernmentThirdPartyPayersMember2021-01-012021-09-300001404123onem:NetFeeForServiceRevenueMemberonem:CommercialAndGovernmentThirdPartyPayersMember2020-01-012020-09-300001404123onem:NetFeeForServiceRevenueMemberonem:PatientsIncludingSelfPayInsuranceCoPaysAndDeductiblesMember2021-07-012021-09-300001404123onem:NetFeeForServiceRevenueMemberonem:PatientsIncludingSelfPayInsuranceCoPaysAndDeductiblesMember2020-07-012020-09-300001404123onem:NetFeeForServiceRevenueMemberonem:PatientsIncludingSelfPayInsuranceCoPaysAndDeductiblesMember2021-01-012021-09-300001404123onem:NetFeeForServiceRevenueMemberonem:PatientsIncludingSelfPayInsuranceCoPaysAndDeductiblesMember2020-01-012020-09-300001404123onem:CARESActMemberonem:GrantIncomeMemberonem:CovidNineteenMember2021-07-012021-09-300001404123onem:CapitatedAccountsReceivableMember2021-09-300001404123onem:CapitatedAccountsReceivableMember2020-12-310001404123onem:OtherAccountsReceivableMember2021-09-300001404123onem:OtherAccountsReceivableMember2020-12-310001404123onem:CapitatedAccountsReceivableMember2021-09-012021-09-3000014041232021-10-012021-09-3000014041232022-10-012021-09-300001404123srt:MinimumMember2021-09-300001404123srt:MaximumMember2021-09-300001404123us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2021-09-300001404123onem:IoraIncMember2021-09-012021-09-010001404123onem:IoraIncMemberus-gaap:CommonStockMember2021-09-012021-09-010001404123us-gaap:EmployeeStockOptionMemberonem:IoraIncMember2021-09-012021-09-010001404123onem:IoraIncMember2021-09-01onem:marketonem:Segment0001404123onem:IoraIncMember2021-09-010001404123us-gaap:LineOfCreditMemberonem:IoraIncMember2021-09-012021-09-010001404123onem:IoraIncMember2021-09-012021-09-300001404123onem:IoraIncMemberonem:MedicareAdvantageContractsMember2021-09-012021-09-010001404123onem:IoraIncMemberonem:CMMIDirectContractingContractMember2021-09-012021-09-010001404123onem:IoraIncMemberus-gaap:TradeNamesMember2021-09-012021-09-010001404123us-gaap:AcquisitionRelatedCostsMember2021-07-012021-09-300001404123us-gaap:AcquisitionRelatedCostsMember2020-07-012020-09-300001404123us-gaap:AcquisitionRelatedCostsMember2021-01-012021-09-300001404123us-gaap:AcquisitionRelatedCostsMember2020-01-012020-09-300001404123onem:AmortizationAndDepreciationExpenseMember2021-07-012021-09-300001404123onem:AmortizationAndDepreciationExpenseMember2020-07-012020-09-300001404123onem:AmortizationAndDepreciationExpenseMember2021-01-012021-09-300001404123onem:AmortizationAndDepreciationExpenseMember2020-01-012020-09-300001404123onem:StockBasedCompensationCostsMember2021-07-012021-09-300001404123onem:StockBasedCompensationCostsMember2020-07-012020-09-300001404123onem:StockBasedCompensationCostsMember2021-01-012021-09-300001404123onem:StockBasedCompensationCostsMember2020-01-012020-09-300001404123onem:ChangeInTaxEffectMember2021-07-012021-09-300001404123onem:ChangeInTaxEffectMember2020-07-012020-09-300001404123onem:ChangeInTaxEffectMember2021-01-012021-09-300001404123onem:ChangeInTaxEffectMember2020-01-012020-09-30onem:business_acquired0001404123us-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMember2021-01-012021-09-300001404123us-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMember2021-09-300001404123us-gaap:CustomerRelationshipsMemberus-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMember2021-01-012021-09-300001404123srt:MinimumMemberus-gaap:CustomerRelationshipsMember2021-01-012021-09-300001404123us-gaap:CustomerRelationshipsMembersrt:MaximumMember2021-01-012021-09-3000014041232021-01-012021-06-300001404123onem:MedicareAdvantageContractsMember2021-09-300001404123onem:CMMIDirectContractingContractMember2021-09-300001404123us-gaap:TradeNamesMember2021-09-300001404123us-gaap:CustomerRelationshipsMember2021-09-300001404123onem:ConvertibleSeniorNotesDueTwoThousandAndTwentyFiveMember2020-05-310001404123onem:ConvertibleSeniorNotesDueTwoThousandAndTwentyFiveMember2020-09-300001404123onem:ConvertibleSeniorNotesDueTwoThousandAndTwentyFiveMember2020-05-012020-05-31onem:Tradingday0001404123onem:ScenarioPlanOneMemberonem:ConvertibleSeniorNotesDueTwoThousandAndTwentyFiveMember2020-05-012020-05-310001404123onem:ScenarioPlanTwoMemberonem:ConvertibleSeniorNotesDueTwoThousandAndTwentyFiveMember2020-05-012020-05-310001404123onem:ConvertibleSeniorNotesDueTwoThousandAndTwentyFiveMember2021-09-300001404123onem:ConvertibleSeniorNotesDueTwoThousandAndTwentyFiveMember2021-07-012021-09-300001404123onem:ConvertibleSeniorNotesDueTwoThousandAndTwentyFiveMember2020-07-012020-09-300001404123onem:ConvertibleSeniorNotesDueTwoThousandAndTwentyFiveMember2021-01-012021-09-300001404123onem:ConvertibleSeniorNotesDueTwoThousandAndTwentyFiveMember2020-01-012020-09-300001404123onem:TwoThousandSeventeenEquityIncentivePlanMember2020-01-012020-01-310001404123onem:A2007EquityIncentivePlanMember2020-01-012020-01-310001404123onem:TwoThousandTwentyEquityIncentivePlanMember2020-01-012020-01-310001404123us-gaap:EmployeeStockOptionMemberonem:TwoThousandTwentyEquityIncentivePlanMember2020-01-012020-01-310001404123onem:TwoThousandTwentyEquityIncentivePlanMember2021-09-300001404123onem:TwoThousandTwentyESPPMember2020-01-310001404123onem:TwoThousandTwentyESPPMember2021-01-010001404123onem:TwoThousandTwentyESPPMember2021-09-300001404123onem:TwoThousandTwentyESPPMember2021-01-012021-09-300001404123onem:TwoThousandTwentyESPPMember2021-07-012021-09-300001404123onem:TwoThousandTwentyESPPMember2020-07-012020-09-300001404123onem:TwoThousandTwentyESPPMember2020-01-012020-09-300001404123onem:TwoThousandTwentyEmployeeStockPurchasePlanMember2020-12-310001404123onem:TwoThousandTwentyEmployeeStockPurchasePlanMember2020-01-012020-12-310001404123onem:TwoThousandTwentyEmployeeStockPurchasePlanMember2021-01-012021-09-300001404123onem:TwoThousandTwentyEmployeeStockPurchasePlanMember2021-09-300001404123onem:AssumedEquityPlanMemberus-gaap:StockCompensationPlanMember2021-09-010001404123onem:AssumedEquityPlanMemberus-gaap:StockCompensationPlanMember2021-09-012021-09-010001404123us-gaap:PerformanceSharesMember2020-01-012020-12-31onem:tranche0001404123us-gaap:ShareBasedCompensationAwardTrancheOneMemberus-gaap:PerformanceSharesMember2020-12-310001404123us-gaap:ShareBasedCompensationAwardTrancheOneMemberus-gaap:PerformanceSharesMember2020-01-012020-12-310001404123us-gaap:PerformanceSharesMemberus-gaap:ShareBasedCompensationAwardTrancheTwoMember2020-12-310001404123us-gaap:PerformanceSharesMemberus-gaap:ShareBasedCompensationAwardTrancheTwoMember2020-01-012020-12-310001404123us-gaap:PerformanceSharesMemberus-gaap:ShareBasedCompensationAwardTrancheThreeMember2020-12-310001404123us-gaap:PerformanceSharesMemberus-gaap:ShareBasedCompensationAwardTrancheThreeMember2020-01-012020-12-310001404123us-gaap:PerformanceSharesMemberonem:ShareBasedCompensationAwardTrancheFourMember2020-12-310001404123us-gaap:PerformanceSharesMemberonem:ShareBasedCompensationAwardTrancheFourMember2020-01-012020-12-310001404123us-gaap:PerformanceSharesMember2021-01-012021-09-300001404123us-gaap:PerformanceSharesMember2021-07-012021-09-300001404123us-gaap:PerformanceSharesMember2021-09-300001404123us-gaap:RestrictedStockMemberonem:TwoThousandTwentyEmployeeStockPurchasePlanMember2020-12-310001404123us-gaap:RestrictedStockMemberonem:TwoThousandTwentyEmployeeStockPurchasePlanMember2021-01-012021-09-300001404123us-gaap:RestrictedStockMemberonem:TwoThousandTwentyEmployeeStockPurchasePlanMember2021-09-300001404123us-gaap:SellingAndMarketingExpenseMember2021-07-012021-09-300001404123us-gaap:SellingAndMarketingExpenseMember2020-07-012020-09-300001404123us-gaap:SellingAndMarketingExpenseMember2021-01-012021-09-300001404123us-gaap:SellingAndMarketingExpenseMember2020-01-012020-09-300001404123us-gaap:GeneralAndAdministrativeExpenseMember2021-07-012021-09-300001404123us-gaap:GeneralAndAdministrativeExpenseMember2020-07-012020-09-300001404123us-gaap:GeneralAndAdministrativeExpenseMember2021-01-012021-09-300001404123us-gaap:GeneralAndAdministrativeExpenseMember2020-01-012020-09-300001404123us-gaap:EmployeeStockOptionMember2021-01-012021-09-300001404123us-gaap:EmployeeStockOptionMember2020-01-012020-09-300001404123us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-09-300001404123us-gaap:RestrictedStockUnitsRSUMember2020-01-012020-09-300001404123onem:WarrantsToPurchaseCommonStockMember2021-01-012021-09-300001404123onem:WarrantsToPurchaseCommonStockMember2020-01-012020-09-300001404123onem:SharesHeldInEscrowAccountMember2021-01-012021-09-300001404123onem:SharesHeldInEscrowAccountMember2020-01-012020-09-30onem:Plaintiff00014041232018-05-012018-05-31onem:complaint0001404123onem:StockholderLitigationRelatedToIoraHealthAcquisitionMember2021-07-012021-08-310001404123onem:IoraIncMembersrt:MaximumMember2021-06-210001404123onem:IoraIncMember2021-06-21

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2021
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from           to
Commission File Number: 001-39203
1LIFE HEALTHCARE, INC.
(Exact name of registrant as specified in its charter)
Delaware76-0707204
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
One Embarcadero Center, Suite 1900
San Francisco, CA 94111
(Address of principal executive offices and zip code)

(415) 814-0927
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading
Symbol(s)
 Name of each exchange on which registered
Common Stock, $0.001 par value ONEM The Nasdaq Global Select Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes  ☒    No  ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes  ☒    No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer   Accelerated filer 
    
Non-accelerated filer   Smaller reporting company 
       
  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. 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes      No  ☒
As of October 25, 2021, the registrant had 190,888,777 shares of common stock, $0.001 par value per share, outstanding. 





Table of Contents
 
  Page
PART I. 
Item 1.
 
 
 
 
 
 
Item 2.
Item 3.
Item 4.
   
PART II. 
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.
 
Where You Can Find More Information
Investors and others should note that we announce material financial and other information using our investor relations website, press releases, SEC filings and public conference calls and webcasts. We also post supplemental materials on the “Events” section of our investor relations website at investor.onemedical.com. Except as specifically noted herein, information on or accessible through our website is not, and will not be deemed to be, a part of this Quarterly Report on Form 10-Q or incorporated by reference into any other filings we may make with the U.S. Securities and Exchange Commission (the “SEC”).
We also use our Facebook, Twitter and LinkedIn accounts as a means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD. The information we post through these social media channels may be deemed material. Accordingly, investors should monitor these accounts, in addition to following our press releases, SEC filings and public conference calls and webcasts. This list may be updated from time to time. The information we post through these channels is not a part of this Quarterly Report on Form 10-Q. These channels may be updated from time to time on our investor relations website.
i


PART I—FINANCIAL INFORMATION
Item 1. Financial Statements.
1LIFE HEALTHCARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except par value amounts)
(unaudited)
September 30, 2021December 31, 2020
Assets  
Current assets:  
Cash and cash equivalents$469,813 $112,975 
Short-term marketable securities120,236 570,023 
Accounts receivable, net102,233 67,895 
Inventories6,785 7,113 
Prepaid expenses and other current assets48,060 16,693 
Total current assets747,127 774,699 
Restricted cash3,964 1,911 
Property and equipment, net181,739 126,037 
Right-of-use assets250,026 138,840 
Intangible assets, net363,117  
Goodwill1,151,425 21,301 
Deferred income taxes 2,656 
Other assets12,166 5,546 
Total assets$2,709,564 $1,070,990 
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable$15,330 $12,654 
Accrued expenses91,636 46,527 
Deferred revenue, current46,368 35,966 
Operating lease liabilities, current29,059 17,418 
Other current liabilities26,587 4,861 
Total current liabilities208,980 117,426 
Operating lease liabilities, non-current261,820 153,614 
Convertible senior notes309,376 241,233 
Deferred income taxes89,696  
Deferred revenue, non-current28,883 7,624 
Other non-current liabilities23,127 2,618 
Total liabilities921,882 522,515 
Commitments and contingencies (Note 13)
Stockholders' Equity:
Common stock, $0.001 par value, 1,000,000 and 1,000,000 shares authorized as of September 30, 2021 and December 31, 2020, respectively; 192,020 and 134,472 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively
192 134 
Additional paid-in capital2,310,251 918,118 
Accumulated deficit(522,765)(369,785)
Accumulated other comprehensive income4 8 
Total stockholders' equity1,787,682 548,475 
Total liabilities and stockholders' equity$2,709,564 $1,070,990 
 
The accompanying notes are an integral part of these condensed consolidated financial statements.
1


1LIFE HEALTHCARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share amounts)
(unaudited)
 
Three Months Ended September 30,Nine Months Ended September 30,
 2021202020212020
Net revenue
Medicare revenue$30,462 $ $30,462 $ 
Commercial revenue120,871 101,667 362,639 258,423 
Total net revenue151,333 101,667 393,101 258,423 
Operating expenses:
Medical claims expense26,085  26,085  
Cost of care, exclusive of depreciation and amortization shown separately below78,443 58,781 216,457 163,780 
Sales and marketing14,380 7,914 37,639 28,847 
General and administrative93,070 40,059 234,611 118,236 
Depreciation and amortization12,045 5,735 25,944 16,123 
Total operating expenses224,023 112,489 540,736 326,986 
Loss from operations(72,690)(10,822)(147,635)(68,563)
Other income (expense), net:
Interest income535 235 719 1,635 
Interest and other expense(4,464)(5,647)(10,149)(7,676)
Change in fair value of redeemable convertible preferred stock warrant liability   (6,560)
Total other expense, net(3,929)(5,412)(9,430)(12,601)
Loss before income taxes(76,619)(16,234)(157,065)(81,164)
Provision for (benefit from) income taxes1,984 181 2,143 109 
Net loss(78,603)(16,415)(159,208)(81,273)
Less: Net loss attributable to noncontrolling interest   (704)
Net loss attributable to 1Life Healthcare, Inc. stockholders$(78,603)$(16,415)$(159,208)$(80,569)
Net loss per share attributable to 1Life Healthcare, Inc.  stockholders — basic and diluted$(0.51)$(0.13)$(1.11)$(0.71)
Weighted average common shares outstanding — basic and diluted153,700 128,557 142,990 113,253 
 
 
The accompanying notes are an integral part of these condensed consolidated financial statements.
2


1LIFE HEALTHCARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(Amounts in thousands)
(unaudited)
 
Three Months Ended September 30,Nine Months Ended September 30,
 2021202020212020
Net loss$(78,603)$(16,415)$(159,208)$(81,273)
Other comprehensive loss:
Net unrealized loss on short-term marketable securities(4)(6)(4)(13)
Comprehensive loss(78,607)(16,421)(159,212)(81,286)
Less: Comprehensive loss attributable to noncontrolling interest   (704)
Comprehensive loss attributable to 1Life Healthcare, Inc. stockholders$(78,607)$(16,421)$(159,212)$(80,582)
 
 
The accompanying notes are an integral part of these condensed consolidated financial statements.

3


1LIFE HEALTHCARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT)
(Amounts in thousands)
(unaudited)
 
 Redeemable Convertible Preferred StockCommon StockAdditional Paid-In CapitalAccumulated DeficitAccumulated Other Comprehensive Income (Loss)Total Stockholders' Equity (Deficit) Attributable to 1Life Healthcare, Inc. StockholdersNoncontrolling
Interest
Total Stockholders' Equity (Deficit)
 SharesAmountSharesAmount
Balances at December 31, 2020 $ 134,472 $134 $918,118 $(369,785)$8 $548,475 $ $548,475 
Impact of adoption of ASU 2020-06(73,393)6,656 (66,737)(66,737)
Impact of adoption of ASC 326(428)(428)(428)
Exercise of stock options2,584 3 13,476 13,479 13,479 
Issuance of common stock for settlement of RSUs241 — — — 
Stock-based compensation expense26,328 26,328 26,328 
Net unrealized gain (loss) on short-term marketable securities12 12 12 
Net loss(39,318)(39,318)— (39,318)
Balances at March 31, 2021 $ 137,297 $137 $884,529 $(402,875)$20 $481,811 $ $481,811 
Exercise of stock options353 1 2,627 2,628 2,628 
Issuance of common stock under the employee stock purchase plan107 2,972 2,972 2,972 
Issuance of common stock for settlement of RSUs17 — — 
Stock-based compensation expense26,332 26,332 26,332 
Net unrealized gain (loss) on short-term marketable securities(12)(12)(12)
Net loss(41,287)(41,287)(41,287)
Balance at June 30, 2021 $ 137,774 $138 $916,460 $(444,162)$8 $472,444 $ $472,444 
Exercise of stock options647 1 3,355 3,356 3,356 
Issuance of common stock for settlement of RSUs16 — — 
Issuance of common stock in acquisition53,583 $53 1,313,259 1,313,312 1,313,312 
Equity awards assumed in acquisition48,643 48,643 48,643 
Stock-based compensation expense28,534 28,534 28,534 
Net unrealized gain (loss) on short-term marketable securities(4)(4)(4)
Net loss(78,603)(78,603)(78,603)
Balances at September 30, 2021 $ 192,020 $192 $2,310,251 $(522,765)$4 $1,787,682 $ $1,787,682 
The accompanying notes are an integral part of these condensed consolidated financial statements.

4



1LIFE HEALTHCARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT)
(Amounts in thousands)
(unaudited)
Redeemable Convertible Preferred StockCommon StockAdditional Paid-In CapitalAccumulated DeficitAccumulated Other Comprehensive Income (Loss)Total Stockholders' Equity (Deficit) Attributable to 1Life Healthcare, Inc. StockholdersNoncontrolling InterestTotal Stockholders' Equity (Deficit)
SharesAmountSharesAmount
Balances at December 31, 201986,252 $402,488 18,952 $19 $93,945 $(281,068)$38 $(187,066)$3,035 $(184,031)
Exercise of redeemable convertible preferred stock warrant5 76   
Conversion of redeemable convertible preferred stock into common stock upon closing of initial public offering(86,257)(402,564)86,257 86 402,478 402,564 402,564 
Issuance of common stock upon closing of initial public offering, net of issuance costs and underwriting fees of $23,631
20,125 20 258,099 258,119 258,119 
Fair value adjustment to redeemable convertible preferred stock warrants upon conversion into common stock warrants13,740 13,740 13,740 
Exercise of stock options294 — 1,534 1,534 1,534 
Exercise of common stock warrants11 — 73 73 73 
Cashless exercise of common stock warrants464 1 — 1 1 
Stock-based compensation expense10,325 10,325 10,325 
Net unrealized gain on short-term marketable securities44 44 44 
Net loss(33,853)(33,853)(704)(34,557)
Balances at March 31, 2020 $ 126,103 $126 $780,194 $(314,921)$82 $465,481 $2,331 $467,812 
Reimbursed secondary offering issuance costs784 784 784 
Exercise of stock options103 562 562 562 
Stock-based compensation expense8,363 8,363 8,363 
Net unrealized gain on short-term marketable securities(51)(51)(51)
Equity component of convertible senior notes, net of issuance costs of $2,243
73,370 73,370 73,370 
VIE deconsolidation (2,331)(2,331)
Net loss(30,301)(30,301)(30,301)
Balances at June 30, 2020 $ 126,206 $126 $863,273 $(345,222)$31 $518,208 $ $518,208 
Exercise of stock options5,939 6 23,652 23,658 23,658 
Cashless exercise of common stock warrants104 — — 
Issuance of common stock under the employee stock purchase plan297 1 3,533 3,534 3,534 
Stock-based compensation expense8,635 8,635 8,635 
Net unrealized loss on short-term marketable securities(6)(6)(6)
Net loss(16,415)(16,415)(16,415)
Balances at September 30, 2020 $ 132,546 $133 $899,093 $(361,637)$25 $537,614 $ $537,614 
 
The accompanying notes are an integral part of these condensed consolidated financial statements.
5


1LIFE HEALTHCARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(unaudited) 
Nine Months Ended September 30,
 20212020
Cash flows from operating activities:  
Net loss$(159,208)$(81,273)
Adjustments to reconcile net loss to net cash used in operating activities:
Provision for bad debts551 128 
Depreciation and amortization25,944 16,123 
Amortization of debt discount and issuance costs1,406 4,402 
Accretion of discounts and amortization of premiums on short-term investments, net802 (787)
Change in fair value of redeemable convertible preferred stock warrant liability 6,560 
Reduction of operating lease right-of-use assets14,312 10,039 
Stock-based compensation81,194 27,323 
Deferred income taxes2,143  
Other non-cash items692 (11)
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable, net(10,639)(20,255)
Inventories398 (1,396)
Prepaid expenses and other current assets(19,833)3,530 
Other assets1,293 (637)
Accounts payable144 (2,189)
Accrued expenses31,560 16,416 
Deferred revenue6,261 16,190 
Operating lease liabilities(14,193)(8,503)
Other liabilities21,841 8,353 
Net cash used in operating activities(15,332)(5,987)
Cash flows from investing activities:
Purchases of property and equipment(43,893)(51,494)
Purchases of short-term marketable securities(79,984)(657,211)
Proceeds from sales and maturities of short-term marketable securities528,965 256,315 
Acquisitions of businesses, net of cash and restricted cash acquired(23,257) 
Issuance of note receivable(30,000) 
VIE deconsolidation (810)
Net cash provided by (used in) investing activities351,831 (453,200)
Cash flows from financing activities:
Proceeds from issuance of convertible senior notes 316,250 
Payment of convertible senior notes issuance costs (9,374)
Proceeds from initial public offering 281,750 
Payment of underwriting discount and commissions, and offering costs (21,322)
Proceeds from the exercise of stock options19,463 25,754 
Proceeds from employee stock purchase plan2,972 3,533 
Proceeds from the exercise of redeemable convertible preferred and common stock warrants 110 
Repayment of notes payable (3,300)
Payment of principal portion of finance lease liability(43)(44)
Net cash provided by financing activities22,392 593,357 
Net increase in cash, cash equivalents and restricted cash358,891 134,170 
Cash, cash equivalents and restricted cash at beginning of period115,005 29,329 
Cash, cash equivalents and restricted cash at end of period$473,896 $163,499 
Supplemental disclosure of non-cash investing and financing activities:
Purchases of property and equipment included in accounts payable and accrued expenses$8,860 $3,594 
Equity consideration for business acquisition$1,361,955 $ 
Reimbursement of secondary offering costs in prepaid expenses and other current assets$ $784 
 
The accompanying notes are an integral part of these condensed consolidated financial statements.
6


NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in thousands, except per share amounts)
(unaudited)

1.Nature of the Business and Basis of Presentation
1Life Healthcare, Inc. (“1Life”) was incorporated in Delaware on July 25, 2002. 1Life’s headquarters are located in San Francisco, California. 1Life has developed a modernized healthcare membership model based on direct consumer enrollment and third-party sponsorship across commercially insured and Medicare populations. Our membership model includes seamless access to 24/7 digital health services paired with inviting in-office care routinely covered by most health care payers, and allows us to engage in value-based care across all age groups, including through At-Risk arrangements as defined in Note 2 “Summary of Significant Accounting Policies” with the Center for Medicare & Medicaid Services ("CMS") and select Medicare Advantage health plans, in which the Company is responsible for managing a range of healthcare services and associated costs of its members. 1Life is also an administrative and managerial services company that provides services pursuant to contracts with physician-owned professional corporations (“One Medical PCs”) that provide medical services virtually and in-office.
On September 1, 2021, 1Life completed the acquisition of Iora Health, Inc. ("Iora Health"), a human-centered, value-based primary care group with built-for-purpose technology focused on serving the Medicare population.
Iora Health and Iora Senior Health, Inc. (“Iora Senior Health”) are administrative and managerial service companies that provide services pursuant to contracts with physician-owned professional corporations (“Iora PCs”, together with the One Medical PCs, the “PCs”) that provide medical services virtually and in-office .
Iora Health is an administrative and managerial services company that provides services pursuant to contracts with Iora Health NE DCE, LLC, a limited liability company that participates in the Center for Medicare and Medicaid Services’ direct contracting model (the “DCE entity”). Iora Health, Iora Senior Health, the Iora PCs and the DCE entity are collectively referred to herein as “Iora”. See Note 7 "Business Combinations" to the unaudited condensed consolidated financial statements.
1Life, Iora Health, Iora Senior Health, the PCs and the DCE entity are collectively referred to herein as the “Company”. 1Life and the One Medical PCs operate under the brand name One Medical.
Basis of Presentation
The Company has prepared the accompanying unaudited condensed consolidated financial statements in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP") and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Pursuant to these rules and regulations, the Company has condensed or omitted certain information and footnote disclosures it normally includes in its annual consolidated financial statements prepared in accordance with U.S. GAAP.
The accompanying condensed consolidated financial statements include the accounts of 1Life, Iora Health and Iora Senior Health, their wholly owned subsidiaries, and variable interest entities (“VIE”) in which 1Life, Iora Health and Iora Senior Health have an interest and are the primary beneficiaries. See Note 3, “Variable Interest Entities”. All significant intercompany balances and transactions have been eliminated in consolidation. The noncontrolling interest attributable to the Company’s variable interest entities are presented as a separate component of equity in the condensed consolidated balance sheets.
In management’s opinion, the Company has made all adjustments (consisting only of normal, recurring adjustments, except as otherwise indicated) necessary to fairly state its condensed consolidated financial position, results of operations, comprehensive loss and cash flows. The Company’s interim period operating results do not necessarily indicate the results that may be expected for any other interim period or for the full fiscal year. These financial statements and accompanying notes should be read in conjunction with the consolidated financial statements and notes thereto in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020 as filed with the SEC on March 17, 2021 (the “Form 10-K”).
Use of Estimates
The preparation of condensed consolidated financial statements and related disclosures in conformity with U.S. GAAP and regulations of the SEC requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Estimates include, but are not limited to, revenue
7


recognition, the liability for unpaid medical claims expense, determination of useful lives for intangible assets, self-insurance reserves, contingent liabilities and income taxes. Actual results could differ from these estimates and may result in material effects on the Company’s operating results and financial position.
Due to the COVID-19 global pandemic, the global economy and financial markets have been disrupted and there continues to be a significant amount of uncertainty about the length and severity of the consequences caused by the pandemic. The Company has considered information available to it as of the date of issuance of these financial statements and is not aware of any specific events or circumstances that would require an update to its estimates or judgments, or an adjustment to the carrying value of its assets or liabilities. The accounting estimates and other matters assessed include, but were not limited to, revenue recognition, allowance for doubtful accounts and goodwill and other long-lived assets. These estimates may change as new events occur and additional information becomes available. Actual results could differ materially from these estimates.
The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted on March 27, 2020. Intended to provide economic relief to those impacted by the COVID-19 pandemic, the CARES Act includes various tax and lending provisions, among others. Under the CARES Act, the Company received an income grant from the Provider Relief Fund administered by the Department of Health and Human Services (“HHS”) during the nine months ended September 30, 2021. See Note 5, “Revenue Recognition”.
Cash, Cash Equivalents and Restricted Cash
The Company considers all short-term, highly liquid investments purchased with an original maturity of three months or less at the date of purchase to be cash equivalents. Cash deposits are all in financial institutions in the United States. Cash and cash equivalents consist of cash on deposit, investments in money market funds and commercial paper. Restricted cash represents cash held under letters of credit for various leases and certain At-Risk arrangements. The expected duration of restrictions on the Company’s restricted cash generally ranges from 1 to 9 years.
The reconciliation of cash, cash equivalents and restricted cash reported within the applicable balance sheet line items that sum to the total of the same such amount shown in the condensed consolidated statements of cash flows is as follows:
 September 30,December 31,September 30,December 31,
 2021202020202019
Cash and cash equivalents$469,813 $112,975 $161,468 $27,390 
Restricted cash, current (included in prepaid expenses and other current assets)119 119 17 17 
Restricted cash, non-current3,964 1,911 2,014 1,922 
Total cash, cash equivalents, and restricted cash$473,896 $115,005 $163,499 $29,329 
Concentration of Credit Risk and Significant Customers
Financial instruments that potentially subject the Company to concentration of credit risk consist of cash, cash equivalents, marketable securities and accounts receivable. The Company’s cash balances with individual banking institutions might be in excess of federally insured limits. Cash equivalents are invested in highly rated money market funds and commercial paper. The Company’s marketable securities are invested in U.S. Treasury obligations, U.S. government agency securities, foreign government bonds and commercial paper. The Company is not exposed to any significant concentrations of credit risk from these financial instruments. The Company has not experienced any losses on its deposits of cash, cash equivalents or marketable securities. The Company grants unsecured credit to patients, most of whom reside in the service area of the One Medical or Iora facilities and are largely insured under third-party payer agreements. The Company’s concentration of credit risk is limited by the diversity, geography and number of patients and payers.
8


The table below presents the customers or payers that individually represented 10% or more of the Company’s accounts receivable, net balance as of September 30, 2021 and December 31, 2020. 
 September 30,December 31,
 20212020
Customer E*12 %
Customer F23 %24 %
Customer H10 %16 %
Customer I22 %*
* Represents percentages below 10% of the Company’s accounts receivable in the period.
The table below presents the customers or payers that individually represented 10% or more of the Company’s net revenue for the three and nine months ended September 30, 2021 and 2020.
 Three Months Ended September 30,Nine Months Ended September 30,
 2021202020212020
Customer A*13 %11 %12 %
Customer E***10 %
Customer F*12 %11 %12 %
Customer I13 %***
* Represents percentages below 10% of the Company’s net revenue in the period.
2.Summary of Significant Accounting Policies
The Company’s significant accounting policies are discussed in Note 2 “Summary of Significant Accounting Policies” in Item 15 of its Form 10-K. Except for the accounting policies updated below as a result of the acquisition of Iora Health, Inc., there have been no significant changes to these policies for the three and nine months ended September 30, 2021.
Accounts Receivable, net
Accounts receivable is comprised of amounts due from third-party payers, patients, health system and other partners for healthcare services and amounts due from enterprise clients, schools and universities who purchase access to memberships for their employees, students and faculty. Third-party payers include private payers, and government payers such as CMS. The Company reports accounts receivable net of estimated contractual adjustments and any allowance for credit losses. Capitated accounts receivables and payables related to At-Risk arrangements are recorded net on the condensed consolidated balance sheets when a legal right of offset exists.
Collection of accounts receivable is the Company’s primary source of cash and is critical to its operating performance. The Company’s primary collection risks relate to co-payments and other amounts owed by patients and risk reserve balances with payers. The Company regularly reviews the adequacy of the allowance for credit losses based on a combination of factors, including historical losses adjusted for current market conditions, the Company’s customers’ financial condition, delinquency trends, aging behaviors of receivables and credit and liquidity indicators for industry groups, and future market and economic conditions. Accounts receivable deemed uncollectable are charged against the allowance for credit losses when identified. Increases and decreases in the allowance for credit losses from patient service revenue are included in net revenue in the consolidated statements of operations.
Business Combinations
The Company recognizes identifiable assets acquired and liabilities assumed at their acquisition date fair values. Goodwill is measured as the excess of the consideration transferred over the fair value of assets acquired and liabilities assumed on the acquisition date. Acquisition-related expenses are recognized separately from the business combination and are expensed as incurred. While the Company uses its best estimates and assumptions as part of the purchase price allocation process to accurately value assets acquired and liabilities assumed, these estimates are inherently uncertain and subject to refinement. The authoritative guidance allows a measurement period of up to one year from the date of acquisition to make adjustments to the preliminary allocation of the purchase price. As a result, during the measurement period the Company may record adjustments
9


to the fair values of assets acquired and liabilities assumed, with the corresponding offset to goodwill to the extent that it identifies adjustments to the preliminary purchase price allocation. Upon conclusion of the measurement period or final determination of the values of the assets acquired and liabilities assumed, whichever comes first, any subsequent adjustments will be recorded to the consolidated statement of operations.
Medicare Revenue
Medicare revenue is generated as (i) Capitated Medicare Revenue and (ii) fee-for-service and other Medicare revenue.
Capitated Medicare Revenue
The Company receives a per member per month (“PMPM”) fee under At-Risk arrangements, which refers to a model in which the Company receives a PMPM fee from the third-party payer, and is responsible for managing a range of healthcare services and associated costs of its members. Under certain contracts, the Company adjusts the PMPM fees for a percentage share of any additional gross revenues and associated medical claims expense generated by the provision of healthcare services not directly provided by the Company. The capitated revenues, medical claims expense, and related adjustments are recorded gross because the Company is acting as a principal in arranging, providing, and controlling the managed healthcare services provided to the eligible enrolled members. Neither the Company nor any of its affiliates is a registered insurance company because state law in the states in which any of them operates does not require such registration for risk-bearing providers. The Company’s contracts, which are negotiated by the payer on behalf of its enrolled members, generally have a term of two years or longer.
The Company considers its obligation to provide healthcare services to all enrolled members under a given contract as a single performance obligation. This performance obligation is to stand ready to provide managed healthcare services and it is satisfied over time as measured by months of service provided. The Company’s revenues are based on the PMPM amounts it is entitled to receive from the payers. The total amounts of PMPM fees earned will fluctuate due to changes in the member population and the member's health status (acuity). The Company does not estimate the PMPM variable consideration because the performance obligation is a stand-ready obligation, the consideration is remitted monthly, and the variable consideration earned is directly related to the period in which the services are performed.
The adjustment to the PMPM fees must be estimated due to reporting lag times, and requires significant judgment. These are estimated using the expected value methodology based on historical data and actuarial inputs. Final adjustments related to the contracts may take up to 18 months due to reserves for claims incurred but not reported. The Company recognizes revenue in the month in which eligible members are entitled to receive healthcare benefits during the contract term. The Company does not have a historical pattern of granting material concessions or waiving fees and, as such, does not include any such estimate in the transaction price of its contracts.
Fee-for-service and Other Medicare Revenue
The Company recognizes fee-for-service Medicare revenue as services are rendered, which are delivered over a period of time but typically within one day, when the Company provides services to the patient. The Company receives payments for services from third-party payers as well as from patients where they may bear some cost of the service in the form of co-pays, coinsurance or deductibles. Providing medical services to patients represents the Company’s performance obligation under these contracts, and accordingly, the transaction price is allocated entirely to the one performance obligation. Fee-for-service Medicare revenue is reported net of provisions for contractual allowances from third-party payers and patients. The Company does not have a historical pattern of granting material concessions or waiving fees and, as such, does not include any such estimate in the transaction price of its fee-for-service contracts. The Company may be entitled to one-time payments under certain contracts to compensate the Company for clinical start-up, administration, and on-going coordination of care activities. Such payments are recognized ratably over the length of the term stated in the contracts as they are refundable on a pro-rata basis if the Company ceases to provide services at the specified clinics prior to the contractual end date. These payments are part of the transaction price that is fully allocated to the single performance obligation to provide healthcare services on a stand-ready basis.
Medical Claims Expense
Medical claims expenses consist of certain third-party medical expenses paid by payers contractually on behalf of the Company. Medical claims expense is recognized in the period in which services are provided and includes an estimate of the Company’s obligations for medical services that have been provided to its members and patients but for which claims have not been received or processed, and for liabilities for third-party physician, hospital and other medical expense disputes. Medical
10


claims expenses include such costs as inpatient and outpatient services, certain pharmacy benefits and physician services by providers other than the physicians employed by the Company.
The cost of healthcare services provided or contracted for is accrued in the period in which the services are rendered. These costs includes an estimate, supported by actuarial inputs, of the related liability for medical claims incurred in the period but not yet reported (“IBNR”), which is based on historical claims experience. Changes in this estimate can materially affect, either favorably or unfavorably, results from operations and overall financial position. The estimated reserve for incurred and not reported ("IBNR") claims liability is included in accounts receivable, net in the condensed consolidated balance sheets.
Emerging Growth Company Status
The Company is an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. The Company has elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that it (i) is no longer an emerging growth company or (ii) affirmatively and irrevocably opt out of the extended transition period provided in the JOBS Act. As a result, these financial statements may not be comparable to companies that comply with the new or revised accounting pronouncements as of public company effective dates. The Company will cease to be an emerging growth company, as defined in the JOBS Act, at the end of this fiscal year ending December 31, 2021.
Recently Adopted Pronouncements as of September 30, 2021
In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies the accounting for convertible instruments by removing certain separation models in Subtopic 470-20, Debt—Debt with Conversion and Other Options, for convertible instruments and also increases information transparency by making disclosure amendments. The standard is effective for private companies for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years.
The Company early adopted this standard on January 1, 2021 on a modified retrospective basis. Under previous GAAP, instruments that may be partially settled in cash were in the scope of the “cash conversion” model, which required conversion features to be separately reported in equity. Upon the adoption of ASU 2020-06, the cash conversion model was eliminated and the Company no longer separates its convertible senior notes (“the 2025 Notes”) into liability and equity components and instead accounts for the 2025 Notes as a single liability instrument. As a result, there is no longer a debt discount or subsequent amortization to be recognized as interest expense. Further, ASU 2020-06 requires the use of the if-converted method for diluted earnings per share calculation, and no longer allows the use of the treasury stock method for instruments with flexible settlement arrangements. Under the previous treasury stock method, only the excess of the average stock price of the Company’s common stock for the reporting period over the conversion price was used in determining the impact to the diluted earnings per share denominator. Under the current if-converted method, all underlying shares shall be included in the denominator regardless of the average stock price for the reporting period, in addition to adding back to the numerator, the related interest expense from the stated coupon and the amortization of issuance costs, if dilutive.
The prior period consolidated financial statements have not been retrospectively adjusted and continue to be reported under the accounting standards in effect for those periods. Accordingly, the cumulative-effect adjustment to the opening balance of accumulated deficit as of January 1, 2021 was as follows:
December 31, 2020
As Reported
Effect of the Adoption of ASU 2020-06January 1, 2021
As Adjusted
Liabilities
   Convertible senior notes $241,233 $66,737 $307,970 
Stockholders' Equity
   Additional paid-in capital918,118 (73,393)844,725 
   Accumulated deficit$(369,785)$6,656 $(363,129)
11


The impact of adoption on the condensed consolidated statements of operations for the three and nine months ended September 30, 2021 was primarily a reduction of non-cash interest expense of $3,311 and $9,719, respectively. The reduction in interest expense decreased the net loss attributable to common stockholders and decreased the basic net loss per share. The required use of the if-converted method for earnings per share does not impact the diluted net loss per share as long as the Company is in a net loss position. The adoption had no impact on the condensed consolidated statement of cash flows.
In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and also issued subsequent amendments to the initial guidance (collectively, Topic 326). Topic 326 replaces the existing incurred loss impairment model with an expected credit loss model and requires a financial asset measured at amortized cost to be presented at the net amount expected to be collected. For available-for-sale debt securities with unrealized losses, the standard limits the amount of credit losses to be recognized to the amount by which carrying value exceeds fair value and requires the reversal of previously recognized credit losses if fair value increases. The Company early adopted the standard on January 1, 2021 using a modified retrospective approach with no material impact to the condensed consolidated financial statements.
In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which aligns the requirements for capitalizing implementation costs incurred in a cloud computing arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use-software. The Company adopted the standard on January 1, 2021 on a prospective basis. The adoption did not have a material impact on the Company’s condensed consolidated financial statements.
Recently Issued Accounting Pronouncements Not Yet Adopted as of September 30, 2021
There have been no recent accounting pronouncements or changes in accounting pronouncements that are of significance or potential significance to the Company as of September 30, 2021.
3.Variable Interest Entities
1Life, Iora Health and Iora Senior Health's agreements with the PCs generally consist of both Administrative Services Agreements (“ASAs”), which provide for various administrative and management services to be provided by 1Life, Iora Health or Iora Senior Health, respectively, to the PCs, and succession agreements, which provide for transition of ownership of the PCs under certain conditions ("Succession Agreements").
The ASAs typically provide that the term of the arrangements is ten to twenty years with automatic renewal for successive one-year terms, subject to termination by the contracting parties in certain specified circumstances. The outstanding voting equity instruments of the PCs are owned by nominee shareholders appointed by 1Life, Iora Health or Iora Senior Health (or the PC in one instance) under the terms of the Succession Agreements or other shareholders who are also subject to the terms of the Succession Agreements. 1Life, Iora Health and Iora Senior Health have the right to receive income as an ongoing administrative fee in an amount that represents the fair value of services rendered and has provided all financial support through loans to the PCs. 1Life, Iora Health and Iora Senior Health have exclusive responsibility for the provision of all nonmedical services including facilities, technology and intellectual property required for the day-to-day operation and management of each of the PCs, and makes recommendations to the PCs in establishing the guidelines for the employment and compensation of the physicians and other employees of the PCs. In addition, the agreements provide that 1Life, Iora Health and Iora Senior Health have the right to designate a person(s) to purchase the stock of the PCs for a nominal amount in the event of a succession event. Based upon the provisions of these agreements, 1Life determined that the PCs are variable interest entities due to its equity holder having insufficient capital at risk, and 1Life has a variable interest in the PCs.
The contractual arrangement to provide management services allows 1Life, Iora Health or Iora Senior Health to direct the economic activities that most significantly affect the PCs. Accordingly, 1Life, Iora Health or Iora Senior Health is the primary beneficiary of the PCs and consolidates the PCs under the VIE model. Furthermore, as a direct result of nominal initial equity contributions by the physicians, the financial support 1Life, Iora Health or Iora Senior Health provides to the PCs (e.g. loans) and the provisions of the nominee shareholder succession arrangements described above, the interests held by noncontrolling interest holders lack economic substance and do not provide them with the ability to participate in the residual profits or losses generated by the PCs. Therefore, all income and expenses recognized by the PCs are allocated to 1Life stockholders. The aggregate carrying value of the current assets and liabilities included in the condensed consolidated balance sheets for the PCs after elimination of intercompany transactions and balances were $181,992 and $115,417, respectively, as of September 30, 2021 and $48,182 and $31,462, respectively, as of December 31, 2020. The PCs did not have noncurrent assets or liabilities.
12


4.Fair Value Measurements and Investments
Fair Value Measurements
The following tables present information about the Company’s financial assets measured at fair value on a recurring basis:
 Fair Value Measurements as of September 30, 2021 Using:
 Level 1Level 2Level 3Total
Assets:    
Cash equivalents:
Money market fund$411,735 $ $ $411,735 
Short-term investments:
U.S. Treasury obligations60,222   60,222 
Foreign government bonds 5,034  5,034 
Commercial paper 54,980  54,980 
 Total financial assets$471,957 $60,014 $ $531,971 
 Fair Value Measurements as of December 31, 2020 Using:
 Level 1Level 2Level 3