2025-11-13T16:02:05-06:00 2024-12-31 331374517 PKF O'CONNOR DAVIES ADVISORY LLC 500 MAMARONECK AVENUE SUITE 301 HARRISON NY 105281633 990 2024-01-01 450553664 HEALTHIX INC HEAL 8776954749 462 SEVENTH AVENUE 8TH FLOOR NEW YORK NY 10018 TODD M ROGOW PRESIDENT & CEO 8776954749 2025-11-13 1 1 MELISSA MODELSON P01603524 9143818900 2025-11-13 2024 2025-03-06 01:10:19Z TODD M ROGOW 462 SEVENTH AVENUE 8TH FLOOR NEW YORK NY 10018 26795681 0 X WWW.HEALTHIX.ORG X 2007 NY THE MISSION OF THE COMPANY IS TO CREATE AN ACHIEVABLE, SUSTAINABLE AND REPLICABLE MODEL FOR INTEGRATING CLINICAL INFORMATION ACROSS MULTIPLE HEALTH CARE ORGANIZATIONS WHICH SUPPORTS NEW YORK STATE AND FEDERAL STRATEGIC HEALTH INFORMATION TECHNOLOGY (HIT) PLANS TO (A) IMPROVE ACCESS TO PATIENT DATA AT THE POINT OF CARE; (B) IMPROVE HEALTH CARE QUALITY; AND (C) REDUCE INAPPROPRIATE UTILIZATION AND COST. 18 18 107 19 0 0 20003787 23064073 4397628 3006757 572074 724851 0 0 24973489 26795681 0 0 0 0 14277493 16641229 0 0 0 10202871 9547673 24480364 26188902 493125 606779 26541737 28668489 5576682 7096655 20965055 21571834 X THE MISSION OF HEALTHIX INC. IS TO CREATE AN ACHIEVABLE, SUSTAINABLE AND REPLICABLE MODEL FOR INTEGRATING CLINICAL INFORMATION ACROSS MULTIPLE HEALTH CARE ORGANIZATIONS WHICH SUPPORTS NEW YORK STATE AND FEDERAL STRATEGIC HEALTH INFORMATION TECHNOLOGY (HIT) PLANS TO (A) IMPROVE ACCESS TO PATIENT DATA AT THE POINT OF CARE; (B) IMPROVE HEALTH CARE QUALITY; AND (C) REDUCE INAPPROPRIATE UTILIZATION AND COST. 0 0 22019325 0 3006757 SHIN-NY GRANT/HCRA/MEDICAID PROGRAMPROGRAM DESCRIPTIONHEALTHIX WORKS WITH OUR PARTICIPANTS TO INTEGRATE THEM INTO THE HIE AND TO WORK WITH THEM TO DESIGN AND DEVELOP PRODUCTS AND SERVICES THAT HELP THEM TO IMPROVE CARE THROUGH BETTER CARE COORDINATION. IN 2024 WE USED THE FUNDING FROM SHIN-NY/HCRA/MEDICAID TO SUPPORT CUSTOMER ENGAGEMENT, COMPLIANCE, RELATIONSHIP MANAGEMENT, PROJECT MANAGEMENT, OPERATIONS, DEVELOPMENT, DATA QUALITY IMPROVEMENT, ENGINEERING, QUALITY ASSURANCE AND SUPPORT. OUR CUSTOMER ENGAGEMENT TEAM RECRUITED NEW PARTICIPANTS, ENSURED COMPLIANCE WITH STATE PRIVACY & SECURITY POLICIES AND PREPARED STATEMENTS OF WORK TO HAND OFF TO THE PROJECT MANAGEMENT, CUSTOMER EXPERIENCE AND DEVELOPMENT & ENGINEERING TEAMS. CUSTOMER ENGAGEMENT TEAM WAS COMPRISED OF TWO CUSTOMER ENGAGEMENT MANAGERS REPORTING INTO THE VICE PRESIDENT OF CUSTOMER EXPERIENCE. THE COMPLIANCE DEPARTMENT IS COMPRISED OF AN ASSISTANT VICE PRESIDENT OF COMPLIANCE AND PRIVACY OFFICER AND FIVE COMPLIANCE STAFF. THE PROJECT MANAGEMENT DEPARTMENT IS COMPRISED OF A VICE PRESIDENT, FIVE PROJECT MANAGERS, A PROJECT MANAGEMENT TEAM LEAD, A QUALITY ASSURANCE LEAD, TWO QUALITY ASSURANCE ENGINEERS, A MANAGER OF OPERATIONS WITH TWO ANALYSTS AND A TRAINING SPECIALIST. THE CUSTOMER EXPERIENCE TEAM IS COMPRISED OF A VICE PRESIDENT, A DIRECTOR OF RELATIONSHIP MANAGEMENT WITH EIGHT RELATIONSHIP MANAGERS, A COMMUNICATIONS MANAGER, AN ASSISTANT VICE PRESIDENT OF CUSTOMER SUPPORT WITH SEVEN CUSTOMER SUPPORT STAFF. THE DEVELOPMENT OPERATIONS TEAM IS LED BY A SENIOR DIRECTOR AND COMPRISED OF A DIRECTOR OF DATA STRATEGY AND EIGHT DATA ANALYSTS, A DIRECTOR OF DEVELOPMENT WITH FIVE INTEGRATION ENGINEERS AND A SYSTEMS ENGINEERING TEAM COMPRISED OF EIGHT NETWORK ENGINEERS. THE INFORMATION SECURITY GROUP REPORTS INTO THE CIO AND IS COMPRISED OF A CHIEF INFORMATION SECURITY OFFICER AND TWO INFORMATION SECURITY ANALYSTS. IN ADDITION, THE SHIN-NY GRANT/HCRA/MEDICAID PROGRAM FUNDING SUPPORTED OFFICE SPACE AND DATA CENTER OPERATIONS.ACCOMPLISHMENTSIN 2024 HEALTHIX COMPLETED 234 PROJECTS INCLUDING CUSTOMER PROJECTS, INTERNAL PROJECTS, VENDOR DEVELOPMENT PROJECTS, PRODUCT DEVELOPMENT PROJECTS, GRANTS PROJECTS AND PUBLIC HEALTH PROJECTS. THE CUSTOMER PROJECTS INCLUDED CONNECTING NEW PARTICIPANTS TO HEALTHIX AND PROVIDING THEM WITH STANDARD AND CUSTOM SERVICES. NYC DOHMHIN 2024 HEALTHIX CONTINUED A TWO-YEAR CONTRACT WITH THE NEW YORK CITY DEPARTMENT OF HEALTH AND MENTAL HYGIENE (DOHMH) TO DEVELOP NEW FUNCTIONALITY AND INFRASTRUCTURE IMPROVEMENTS TO ENHANCE THE DEPARTMENT'S ABILITY TO PERFORM DISEASE SURVEILLANCE AND EPIDEMIOLOGY. THE CONTRACT WAS EXTENDED DUE TO PENDING DELIVERY COMPLETIONS. THE CONTRACT WAS EXECUTED IN JUNE OF 2023 AND HEALTHIX EARNED $217,000 OF THE DELIVERABLES BY DECEMBER 31, 2024.RESEARCH REVENUECLINITHINK RECEIVED DE-IDENTIFIED PATIENT DATA FROM HEALTHIX TO EVALUATE EVIDENCE FOR A POTENTIAL CLINICAL TRIAL. HEALTHIX PROVIDED BOTH STRUCTURED AND UNSTRUCTURED DATA THROUGH CLINITHINK'S APPLICATION HOSTED IN THE DATA CENTER. COLLABORATION WITH CLINITHINK DETERMINED THE VIABILITY OF PROCEEDING WITH A TRIAL. TECHNICAL DEBT REMEDIATION HEALTHIX HAS PLAYED AN INTEGRAL ROLE THROUGHOUT THE EVOLUTION OF THE STATEWIDE HEALTH INFORMATION NETWORK FOR NEW YORK (SHIN-NY), CONTRIBUTING FROM ITS INCEPTION THROUGH THE ESTABLISHMENT OF OPERATIONAL HIES STATEWIDE. THE ORGANIZATION'S CURRENT STRUCTURE IS THE RESULT OF CONSOLIDATING FIVE SMALLER HIESNYCLIX, LIPIX, BHIX, EHEALTH NETWORK OF LONG ISLAND, AND INTERBORO. THESE MERGERS, IN COMBINATION WITH HEALTHIX'S PARTICIPATION IN NYEC'S SERVICE PLATFORM INITIATIVE AND THE SUBSEQUENT TRANSFER OF SUPPORT AND DEVELOPMENT TO NYEC, HAVE LED TO A SIGNIFICANT ACCUMULATION OF CUSTOM DATA CLASSES REQUIRING EVALUATION, INTEGRATION, REDUCTION, AND POSSIBLE REMOVAL.THIS CUSTOM CODEBASE IS DISTRIBUTED ACROSS FIVE PACKAGES, ENCOMPASSING APPROXIMATELY 9,000 CLASSES AND IMPACTING AROUND 430 PRODUCTIONS SLATED FOR UPDATES. THE FOCUS OF THE CURRENT PROJECT IS TO UPDATE FOUR SOFTWARE PACKAGES, WHILE THE FIFTH PACKAGE WILL CONTINUE SUPPORTING ESSENTIAL CUSTOM FUNCTIONALITIES.HEALTHIX'S VENDOR, INTERSYSTEMS HEALTHSHARE, IS TRANSITIONING AWAY FROM A PLATFORM THAT PREVIOUSLY PERMITTED EXTENSIVE CUSTOMIZATION. WITH EACH NEW UPGRADE, THE VENDOR IS MOVING TOWARD "DEPLOYED CODE," A MODEL WITH LIMITED EXTENSIBILITY. THIS SHIFT SIGNIFICANTLY HEIGHTENS THE URGENCY TO COMPLETE THE ONGOING CODE INTEGRATION AND MODERNIZATION PROJECT.INVESTMENT IN TRANSFORMATION THE FOUNDATION OF THIS PROJECT IS THE EXISTING HEALTHIX PROVIDER TOOLKIT THAT WAS DESIGNED TO MEET THE VALUE-BASED CARE NEEDS OF FQHCS. WE REVIEWED THE EXISTING FUNCTIONALITY TO DETERMINE IF ANY OF IT IS TRANSFERABLE TO THE NEEDS OF CBOS AND BHOS. IN ADDITION, WE WILL DEVELOP NEW FUNCTIONALITY SPECIFICALLY DESIGNED FOR THE NEEDS OF CBOS AND BHO. MANY CBOS AND BHOS LACK THE STAFF AND TECHNOLOGY TO COLLECT CLINICAL DATA OR ALERTS, RELYING MAINLY ON THE HEALTHIX PORTAL. HOWEVER, THIS PORTAL FOCUSES ON INDIVIDUAL PATIENTS AND DOES NOT OFFER POPULATION-LEVEL ANALYSIS. THIS PROJECT DEVELOPED A CBO-BHO TOOLKIT THAT WILL ADDRESS THESE INFORMATION GAPS BY HELPING USERS IDENTIFY CARE GAPS, LOCATE HIGH-RISK PATIENTS FOR OUTREACH, AND ASSESS CARE COORDINATION.AT THE BEGINNING OF 2023, HEALTHIX LAUNCHED A NEW SERVICE TO SUPPORT PROVIDERS IN POPULATION HEALTH AND VALUE-BASED CARE. THE NEW SERVICE IS DESIGNED TO HELP PROVIDERS IDENTIFY AND FOLLOW UP WITH HIGH-RISK PATIENTS AND MEET QUALITY MEASURES AND ACHIEVE HIGHER INCENTIVE PAYMENTS. HEALTHIX HAS INVESTED IN THE DEVELOPMENT AND SUBSIDIZED THE LICENSE FEES IN ORDER TO ENHANCE ADOPTION. AS THE PRODUCT MATURES AND IS ABLE TO DEMONSTRATE VALUE, CUSTOMERS WILL BE ASKED TO PAY MARKET RATES FOR THE SERVICE AND PROVIDE A NEW REVENUE STREAM FOR HEALTHIX. DURING THE YEAR ENDED DECEMBER 31, 2024, THE COMPANY RECORDED $937,500 IN REVENUE IN CONNECTION WITH THIS PROGRAM.PUBLIC HEALTH DATA LAKEDURING THE YEAR ENDED DECEMBER 31, 2024, THE COMPANY RECORDED $420,000 IN REVENUE IN CONNECTION WITH THIS PROGRAM.1115 WAIVER AND HRSN IMPLEMENTATIONDURING THE YEAR ENDED DECEMBER 31, 2024, THE COMPANY RECORDED $175,000 IN REVENUE IN CONNECTION WITH THE 1115 WAIVER PROGRAM AND $170,000 IN CONNECTION WITH THE HRSN IMPLEMENTATION PROGRAM.LOCAL HEALTH DEPARTMENT REPORTINGDURING THE YEAR ENDED DECEMBER 31, 2024, THE COMPANY RECORDED $150,000 IN REVENUE IN CONNECTION WITH THIS PROGRAM.SMART ON FHIR(HIXNY)DURING THE YEAR ENDED DECEMBER 31, 20234, THE COMPANY RECORDED $25,000 IN REVENUE IN CONNECTION WITH THIS PROGRAM. 22019325 1 1 0 1 0 0 0 0 0 0 1 0 0 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 1 X 15 0 107 1 0 0 0 0 0 0 0 0 0 0 0 0 X 18 18 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 NY X X GERI ALMER 8776954749 462 SEVENTH AVENUE 8TH FLOOR NEW YORK NY 10018 LARRY MCREYNOLDS CHAIR 4.00 X X 0 0 0 DAVID COHEN MD CHAIR THRU NOV 2024 4.00 X X 0 0 0 GERALD J KELLY DO VICE CHAIR 1.00 X X 0 0 0 CHARLES KING TREASURER/SECRETARY 1.00 X X 0 0 0 LORI ANDRADE DIRECTOR 1.00 X 0 0 0 MICHAEL BOUTON MD DIRECTOR 1.00 X 0 0 0 TAVORA AL BUCHMAN PHD DIRECTOR 1.00 X 0 0 0 PAUL CASALE MD DIRECTOR 1.00 X 0 0 0 GABRIEL M COHEN MD DIRECTOR 1.00 X 0 0 0 K TORIAN EASTERLING MD DIRECTOR 1.00 X 0 0 0 DAVID ALAN HORWITZ MD DIRECTOR 1.00 X 0 0 0 IRENE KOCH ESQ DIRECTOR 1.00 X 0 0 0 DAVID LEVENTHAL DIRECTOR 1.00 X 0 0 0 MARC D PARADIS DIRECTOR 1.00 X 0 0 0 DONNA REY EDD DIRECTOR 1.00 X 0 0 0 FRED S SGANGA DIRECTOR 1.00 X 0 0 0 MATTHEW SIEGLER DIRECTOR 1.00 X 0 0 0 GRETCHEN VAN WYE PHD DIRECTOR 1.00 X 0 0 0 ANUP VIDYARTHY DIRECTOR 1.00 X 0 0 0 TODD M ROGOW PRESIDENT & CEO 40.00 X 599799 0 203040 JOHN GUASTELLA SVP & CFO 40.00 X 360036 0 120546 NICHOLAS VANDUYNE SVP & CIO 40.00 X 349616 0 119239 MAGDALENA MANDZIELEWSKA AVP COMPLIANCE & PRIVACY 40.00 X 221849 0 51788 JOHN R CHOW CISO 40.00 X 227460 0 83400 KIMBERLY FRANCOIS VP PROJECT MGMT & INNOVATION 40.00 X 256885 0 45685 THOMAS MOORE SVP STRATEGY & PARTNERSHIPS 32.00 X 326010 0 56216 VIVIENNE DESTEFANO SVP CORPORATE AFFAIRS 40.00 X 333837 0 95383 MAUREEN O'CONNOR VP CUSTOMER EXPERIENCE & MARKETING 40.00 X 240763 0 79389 STEPHANIE B SCOTT VP PEOPLE & ORGANIZATIONAL TRANSFORMATION 40.00 X 230660 0 41350 GERI ALMER AVP FINANCE & CONTROLLER 40.00 X 220648 0 58077 3367563 0 954113 60 0 1 0 J2 INTERACTIVE LLC 2 THIRTEENTH STREET CHARLESTOWN MA 02129 IT CONSULTING/STAFF AUGMENTATION 507735 CROWN LEADERSHIP LLC 16105 VILLARREAL DE AVILA TAMPA FL 33613 LEADERSHIP/BUSINESS GROWTH ACCELERATOR C 369677 MEDITOLOGY SERVICES 5256 PEACHTREE ROAD SUITE 190 ATLANTA GA 30341 CONSULTING SERVICES/STAFF AUGMENTATION 332648 INFORMD LLC 17 HENRY AVENUE HICKSVILLE NY 11801 IT (VALUE-BASED CARE TOOLKIT) CONSULTING 149995 GARFUNKEL WILD PC 111 GREAT NECK ROAD GREAT NECK NY 11021 LEGAL SERVICES 130651 7 23064073 23064073 CONTRACT REVENUE 518210 2948402 2948402 CONFERENCE REVENUE 518210 58355 58355 3006757 724751 724751 100 0 100 100 100 26795681 3006757 0 724851 2313259 1259419 1053840 83599 83599 11196559 9997880 1198679 472352 428312 44040 1408470 1253018 155452 1166990 989036 177954 190624 161554 29070 65480 55494 9986 17197 17197 409558 347099 62459 326556 276756 49800 225777 191348 34429 6558394 5555616 1002778 418954 355064 63890 166878 141429 25449 158554 134375 24179 600893 509263 91630 408808 346465 62343 26188902 22019325 4169577 0 1966281 643567 12282946 16516669 7165100 5884287 1105829 896550 1820073 1873106 3175287 2284437 1461358 890850 740150 1963460 26541737 28668489 4610299 4336069 396184 1002440 570199 1758146 5576682 7096655 X 20965055 21571834 20965055 21571834 26541737 28668489 606779 0 X X 0 1 X 1 1 1 X 27777561 22194016 19859197 20003787 23064073 112898634 1167985 1353589 1027148 4397628 3006757 10953107 28945546 23547605 20886345 24401415 26070830 123851741 0 236700 1387868 1624568 236700 1387868 1624568 122227173 16792 11574 3169 571324 724751 1327610 16792 11574 3169 571324 724751 1327610 41000 41000 28962338 23559179 20930514 24972739 26795581 125220351 0.97610 0.98030 0.01060 0.00540 X SCHEDULE A, PART III, LINE 12, EXPLANATION OF OTHER INCOME: RECOVERY OF BAD DEBT - 2022 AMOUNT: $ 41,000. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 1 17197 17197 0 PART II-B, LINE 1: AMOUNT REPORTED ON LINE 1I REPRESENTS FEE PAID TO OTHER CONSULTANT FOR STATE BILL RELATED TO HEALTH INFORMATION NETWORK. 32599 12492 20107 2805015 1978129 826886 337673 293816 43857 890850 SECURITY DEPOSITS 123518 RIGHT OF USE - OPERATING LEASES, NET 1758146 ACCRUED INTEREST RECEIVABLE 81796 1963460 OPERATING LEASE LIABILITIES 1758146 1758146 X 26605726 0 26605726 189955 189955 26795681 25998947 0 25998947 189955 189955 26188902 PART X, LINE 2: THE COMPANY RECOGNIZES THE EFFECT OF INCOME TAX POSITIONS THAT ARE MORE LIKELY THAN NOT TO BE SUSTAINED. MANAGEMENT HAS DETERMINED THAT THE COMPANY HAS NO UNCERTAIN TAX POSITIONS THAT WOULD REQUIRE FINANCIAL STATEMENT RECOGNITION OR DISCLOSURE. THE COMPANY IS NO LONGER SUBJECT TO EXAMINATIONS BY THE APPLICABLE TAXING JURISDICTIONS FOR PERIODS PRIOR TO DECEMBER 31, 2021. PART XI, LINE 4B - OTHER ADJUSTMENTS: GAIN ON SALE OF ASSETS REPORTED ON PART VIII, LINE 7 100. CONFERENCE INCOME REPORTED ON PART VIII, LINE 1 AND LINE 2 189,855. PART XII, LINE 4B - OTHER ADJUSTMENTS: GAIN ON SALE OF ASSETS REPORTED ON PART VIII, LINE 7 100. CONFERENCE INCOME REPORTED ON PART VIII, LINE 1 AND LINE 2 189,855. X X X X 0 0 0 0 0 0 0 1 0 TODD M ROGOW PRESIDENT & CEO 464210 0 134828 0 761 0 158195 0 44845 0 802839 0 134828 0 JOHN GUASTELLA SVP & CFO 303345 0 54571 0 2120 0 75372 0 45174 0 480582 0 54571 0 NICHOLAS VANDUYNE SVP & CIO 294258 0 53368 0 1990 0 77078 0 42161 0 468855 0 53368 0 VIVIENNE DESTEFANO SVP CORPORATE AFFAIRS 276490 0 55227 0 2120 0 74908 0 20475 0 429220 0 55227 0 THOMAS MOORE SVP STRATEGY & PARTNERSHIPS 267992 0 55941 0 2077 0 31331 0 24885 0 382226 0 55941 0 MAUREEN O'CONNOR VP CUSTOMER EXPERIENCE & MARKETING 208645 0 30802 0 1316 0 44477 0 34912 0 320152 0 30802 0 JOHN R CHOW CISO 198197 0 28457 0 806 0 39939 0 43461 0 310860 0 19969 0 KIMBERLY FRANCOIS VP PROJECT MGMT & INNOVATION 223070 0 31418 0 2397 0 45498 0 187 0 302570 0 23963 0 GERI ALMER AVP FINANCE & CONTROLLER 196943 0 22496 0 1209 0 31319 0 26758 0 278725 0 18746 0 MAGDALENA MANDZIELEWSKA AVP COMPLIANCE & PRIVACY 197623 0 23440 0 786 0 31313 0 20475 0 273637 0 19533 0 STEPHANIE B SCOTT VP PEOPLE & ORGANIZATIONAL TRANSFORM 207801 0 22413 0 446 0 37808 0 3542 0 272010 0 19075 0 PART I, LINE 7 AN EMPLOYEE MAY RECEIVE AN ANNUAL BONUS EQUAL TO AS MUCH AS 12% OF HIS/HER BASE IN 2024 SALARY (EXCEPT FOR SENIOR MANAGEMENT WHO ARE ELIGIBLE FOR AN ENHANCED PERFORMANCE-BASED BONUS). THE BONUS WILL BE DETERMINED BASED UPON PERFORMANCE OBJECTIVES OUTLINED BY THE EMPLOYEE'S MANAGER AND DISCUSSED WITH THE EMPLOYEE, IN MOST CIRCUMSTANCES, EARLY IN THE FIRST QUARTER OF THE COMPENSATION YEAR. FOR NEW EMPLOYEES, WHOSE FIRST ANNUAL BONUS IS PRORATED FROM THEIR DATE OF HIRE TO THE END OF THE YEAR, THEIR PERFORMANCE OBJECTIVES ARE DISCUSSED WITH THEM SHORTLY AFTER THEY ARE HIRED. ONCE THE COMPANY'S FISCAL YEAR HAS ENDED, A PERFORMANCE EVALUATION IS PREPARED TO SEE IF THE EMPLOYEE HAS MET THE CRITERIA FOR INCENTIVE PAY FOR THE PERFORMANCE OBJECTIVES OUTLINED, AND THE MANAGER DETERMINES HOW THE EMPLOYEE HAS PERFORMED. AN OVERALL RATING IS ASSIGNED TO THE PERFORMANCE. THIS OVERALL RATING IS THE DETERMINING FACTOR FOR THE PERCENTAGE BONUS WHICH THE EMPLOYEE HAS EARNED FOR THE PREVIOUS FISCAL YEAR. A SCHEDULE IS DISTRIBUTED TO ALL EMPLOYEES WHICH SHOWS THE PERCENTAGE BONUS AN EMPLOYEE CAN EARN BASED UPON HOW THEIR PERFORMANCE IS RATED. THIS SCHEDULE ALSO BRIEFLY SUMMARIZES THE COMPANY'S INCENTIVE COMPENSATION PROGRAM. THIS IS DISTRIBUTED TO EMPLOYEES IN THE COMPENSATION YEAR SO THAT EACH EMPLOYEE AND THEIR MANAGER ARE AWARE OF WHAT CAN BE EARNED. PAYMENT OF ANY INCENTIVE COMPENSATION IS WHOLLY DEPENDENT UPON THE COMPANY MEETING ITS OPERATING INCOME TARGET, AS IS ESTABLISHED AT THE BEGINNING OF EACH FISCAL YEAR AND APPROVED BY THE BOARD OF DIRECTORS. ONCE THE COMPANY'S BOOKS ARE CLOSED IN THE SUBSEQUENT PERIOD, THE COMPANY THEN COMPARES ITS ACTUAL OPERATING INCOME TO ITS TARGETED OPERATING INCOME. ASSUMING THE OPERATING INCOME TARGET IS MET OR EXCEEDED, MANAGEMENT THEN INFORMS THE HEALTHIX FINANCE COMMITTEE OF THIS. PROPOSED BONUSES ARE THEN SUBMITTED TO THE CEO (OR PREPARED BY HIM FOR HIS DIRECT REPORTS). AS LONG AS THE BONUSES ARE WITHIN THE AMOUNTS BUDGETED BY THE COMPANY, THE EXECUTIVE COMMITTEE HAS GIVEN THE CEO THE AUTHORITY TO APPROVE THE BONUS PAYMENTS. THE BONUS PAYMENTS TO BE PAID OCCURS IN THE FIRST QUARTER OF THE YEAR FOLLOWING THE YEAR IN WHICH THEY WERE EARNED (THE COMPENSATION YEAR). INCENTIVE COMPENSATION EARNED IN 2023 AND PAID/TAXABLE IN 2024 IS REPORTED ON SCHEDULE J, PART II, COLUMN B (II). SEE PART V SEE PART V 83599 SEE PART V 0 FORM 990, SCHEDULE L, PART IV, LINE 1: NAME OF INTERESTED PERSON: JUSTIN CHOWRELATIONSHIP BETWEEN THE INTERESTED PERSON AND ORGANIZATION: FAMILY MEMBER OF THE CISODESCRIPTION OF TRANSACTION: JUSTIN CHOW IS AN EMPLOYEE OF HEALTHIX FORM 990, PART I, QUESTION 5, AND PART V, QUESTION 2A: THE ORGANIZATION CONTRACTED WITH A PROFESSIONAL EMPLOYER ORGANIZATION (PEO) FOR SERVICES, INCLUDING BUT NOT LIMITED TO, PAYROLL, TIMEKEEPING, EMPLOYEE BENEFITS, HR ADMINISTRATION AND WORKFORCE REGULATORY COMPLIANCE NEEDS. AS THE EMPLOYER OF RECORD FOR TAX PURPOSES, FORMS W-2 AND W-3 ARE ISSUED BY THE PEO AND FILED UNDER THE PEO'S FEDERAL EIN. IN THIS CO-EMPLOYMENT ARRANGEMENT, THE ORGANIZATION IS THE COMMON LAW EMPLOYER AND, ACCORDINGLY, COMPENSATION IS REPORTED ON FORM 990, PART VII, SECTION A AND PART IX, LINES 5-10. FORM 990, PART VI, SECTION B, LINE 11B AFTER THE FORM IS PREPARED BY OUTSIDE ACCOUNTANTS, IT WILL FIRST BE REVIEWED BY THE AVP FINANCE/CONTROLLER. IF THERE ARE ANY SUGGESTED CHANGES OR MODIFICATIONS, SHE WILL COMMUNICATE DIRECTLY WITH THE OUTSIDE ACCOUNTANTS. ONCE THE AVP FINANCE/CONTROLLER IS SATISFIED WITH THE 990, SHE WILL PASS IT ON TO THE CEO FOR HIS REVIEW. ONCE THE CEO IS SATISFIED WITH THE 990, THE NEXT STEP IS TO PASS IT ON TO THE CHAIRMAN OF THE FINANCE COMMITTEE, WHO IS A MEMBER OF THE EXECUTIVE COMMITTEE AND THE BOARD OF DIRECTORS, FOR HIS REVIEW. ONCE THIS INDIVIDUAL IS SATISFIED WITH THE 990, IT WILL BE PASSED ON TO THE FULL EXECUTIVE COMMITTEE. THIS COMMITTEE IS A SUBSET OF THE FULL HEALTHIX, INC. BOARD AND IS CHARGED WITH MAKING MANY KEY DECISIONS AFFECTING THE COMPANY. IT IS THIS GROUP OF INDIVIDUALS THAT WILL AUTHORIZE THE FILING OF THE 990. ONCE THE EXECUTIVE COMMITTEE IS SATISFIED WITH THE 990 AND HAS AUTHORIZED ITS FILING, THE AVP FINANCE/CONTROLLER WILL PROVIDE AN ELECTRONIC COPY TO THE FULL BOARD OF DIRECTORS PRIOR TO THE EXTENDED DUE DATE OF THE RETURN. THE BOARD WILL BE INFORMED THAT THE EXECUTIVE COMMITTEE HAS REVIEWED AND APPROVED THE 990. IF ANY BOARD MEMBER HAS ANY QUESTIONS OR CONCERNS THEY WILL BE INSTRUCTED TO CONTACT THE AVP FINANCE/CONTROLLER, WHO WILL RESOLVE THEIR INQUIRIES PROMPTLY. FORM 990, PART VI, SECTION B, LINE 12C ALL DIRECTORS, OFFICERS, AND KEY PERSONS WILL, AT LEAST ANNUALLY THEREAFTER, FILE A WRITTEN CONFLICT OF INTEREST DISCLOSURE STATEMENT WITH HEALTHIX' AVP OF COMPLIANCE, PRIVACY OFFICER. HEALTHIX' AVP OF COMPLIANCE, PRIVACY OFFICER WILL PROVIDE A SUMMARY OF ALL COMPLETED STATEMENTS TO THE CHAIR OF THE AUDIT AND COMPLIANCE COMMITTEE OF THE BOARD FOR REVIEW. A NEW DIRECTOR MUST FILE CONFLICT OF INTEREST PRIOR TO BEING ELECTED TO BECOME A HEALTHIX BOARD MEMBER. FOR DIRECTORS, THE CONFLICT OF INTEREST DISCLOSURE STATEMENT WILL SPECIFICALLY INCLUDE, AMONG OTHER DISCLOSABLE CONFLICTS OF INTEREST, A STATEMENT IDENTIFYING, TO THE BEST OF THE DIRECTOR'S KNOWLEDGE, ANY ENTITY OF WHICH HE OR SHE IS AN OFFICER, DIRECTOR, TRUSTEE, MEMBER, OWNER (EITHER AS A SOLE PROPRIETOR OR A PARTNER), OR EMPLOYEE AND WITH WHICH HEALTHIX HAS A RELATIONSHIP, AND ANY TRANSACTION IN WHICH HEALTHIX IS A PARTICIPANT AND IN WHICH THE DIRECTOR MIGHT HAVE A DISCLOSABLE CONFLICT OF INTEREST. ALL COMPLETED CONFLICT OF INTEREST DISCLOSURE STATEMENTS THAT RAISE AN ACTUAL OR POTENTIAL CONFLICT OF INTEREST, OR THAT CREATE THE APPEARANCE OF AN ACTUAL OR POTENTIAL CONFLICT OF INTEREST, WILL BE FORWARDED BY THE CHAIR OF THE AUDIT AND COMPLIANCE COMMITTEE TO THE AUDIT AND COMPLIANCE COMMITTEE FOR THEIR CONSIDERATION. THE AUDIT AND COMPLIANCE COMMITTEE OF THE BOARD WILL CONDUCT A FULL REVIEW OF ALL MATTERS (E.G., CONTRACTS, TRANSACTIONS OR ARRANGEMENTS) FOR WHICH AN ACTUAL OR POTENTIAL CONFLICT OF INTEREST OR THE APPEARANCE OF AN ACTUAL OR POTENTIAL CONFLICT OF INTEREST HAS BEEN IDENTIFIED. IN SO DOING, THE AUDIT AND COMPLIANCE COMMITTEE OF THE BOARD WILL: A. CONSIDER ALL RELEVANT FACTS AND CIRCUMSTANCES INVOLVED IN THE MATTER, AND IN PARTICULAR, WHAT IS FAIR, REASONABLE AND IN THE BEST INTERESTS OF HEALTHIX; B. EXCLUDE THE AFFECTED INDIVIDUAL(S) FROM BEING PRESENT AT OR PARTICIPATING IN, OR BEING COUNTED IN THE QUORUM FOR, THE DELIBERATIONS OR VOTING ON THE MATTER; C. PROHIBIT THE AFFECTED INDIVIDUAL(S) FROM ANY ATTEMPT TO INFLUENCE IMPROPERLY THE DELIBERATIONS OR VOTING ON THE MATTER; D. PERMIT THE AFFECTED INDIVIDUAL(S), UPON REQUEST OF THE AUDIT AND COMPLIANCE COMMITTEE OF THE BOARD, TO PRESENT INFORMATION CONCERNING THE MATTER AT A MEETING PRIOR TO COMMENCEMENT OF DELIBERATIONS OR VOTING ON THE MATTER. E. NOT PERMIT ANY DIRECTOR TO VOTE OR BE COUNTED IN DETERMINING THE QUORUM FOR ANY VOTE, ON ANY TRANSACTION BETWEEN HEALTHIX AND ANOTHER CORPORATION, FIRM, ASSOCIATION OR OTHER ENTITY IN WHICH THE DIRECTOR IS AN OFFICER OR DIRECTOR OR HAS A DIRECT OR INDIRECT SUBSTANTIAL FINANCIAL INTEREST. THE AUDIT AND COMPLIANCE COMMITTEE OF THE BOARD WILL MAKE A FINAL AND BINDING DETERMINATION AS TO WHETHER A CONFLICT OF INTEREST EXISTS OR MAY EXIST ON ANY MATTER IN WHICH THERE IS A DISCLOSABLE CONFLICT OF INTEREST, AND WHAT COURSE HEALTHIX WILL TAKE IN CONNECTION WITH THE MATTER. THE AUDIT AND COMPLIANCE COMMITTEE OF THE BOARD WILL CONTEMPORANEOUSLY DOCUMENT IN WRITING IN APPROPRIATE MINUTES OF ANY MEETING AT WHICH THE MATTER IS DELIBERATED OR VOTED UPON ALL DELIBERATIONS AND DETERMINATIONS RELATING THERETO, INCLUDING, AT A MINIMUM: 1. THE NAMES AND POSITIONS OF PERSONS WHO DISCLOSED THAT THEY WERE RELATED PARTIES OR OTHERWISE WERE FOUND TO BE RELATED PARTIES OR TO HAVE A CONFLICT OF INTEREST, A DESCRIPTION OF THE NATURE OF THE RELATIONSHIP AND/OR SUBSTANTIAL FINANCIAL INTEREST WHICH GAVE RISE TO SUCH DISCLOSURE OR IDENTIFICATION, AND A DESCRIPTION OF THE CONTRACT, TRANSACTION OR ARRANGEMENT AT ISSUE; 2. THE NAMES OF THE AUDIT AND COMPLIANCE COMMITTEE WHO WERE PRESENT DURING THE TAKING OF THE ACTION TO DETERMINE WHETHER A CONFLICT OF INTERESTS WAS PRESENT, AND THE BASIS FOR THERE BEING A QUORUM FOR THE TAKING OF SUCH ACTION WITHOUT INCLUDING ANY RELATED PARTIES OR AFFECTED PARTIES; 3. THE STEPS TAKEN BY THE AUDIT AND COMPLIANCE COMMITTEE MEMBERS OF THE BOARD TO DETERMINE WHETHER A CONFLICT OF INTEREST WAS PRESENT; 4. THE AUDIT AND COMPLIANCE COMMITTEE BOARD MEMBER'S DECISION AS TO WHETHER A CONFLICT OF INTERESTS WAS PRESENT AND THE BASIS FOR SUCH DECISION; 5. THE AUDIT AND COMPLIANCE COMMITTEE BOARD MEMBER'S DECISION AS TO WHETHER TO PROCEED WITH THE MATTERS (INCLUDING, BUT NOT NECESSARILY LIMITED TO, WHETHER THE MATTER IS AS FAIR AND REASONABLE TO HEALTHIX AS WOULD OTHERWISE THEN BE OBTAINABLE BY HEALTHIX) AND THE NAMES OF THE PERSONS WHO VOTED TO APPROVE THE MATTER. FORM 990, PART VI, SECTION B, LINE 15 COMPENSATION DECISIONS AT HEALTHIX ARE BASED ON A REVIEW OF MARKET COMPARABILITY DATA, TOTAL COMPENSATION PHILOSOPHY, AND ORGANIZATIONAL PERFORMANCE GOALS. WHILE A NEW INDEPENDENT SALARY STUDY HAS NOT BEEN CONDUCTED IN RECENT YEARS, THE COMPANY CONTINUES TO RELY ON CURRENT, REPUTABLE COMPENSATION DATA SOURCES AND PUBLICLY AVAILABLE INDUSTRY BENCHMARKS TO ASSESS MARKET COMPETITIVENESS. IN DETERMINING PAY, HEALTHIX ALSO CONSIDERS THE VALUE OF ITS COMPREHENSIVE BENEFITS PROGRAM, RETIREMENT CONTRIBUTIONS, AND OTHER NON-SALARY REWARDS THAT SUPPORT OVERALL EMPLOYEE WELL-BEING. THE FOUNDATION FOR CURRENT COMPENSATION PRACTICES IS A FORMAL MARKET STUDY CONDUCTED IN 2019 BY JER HR GROUP, LLC, AN INDEPENDENT COMPENSATION CONSULTING FIRM. THIS STUDY, FINALIZED IN JANUARY 2020, ESTABLISHED SALARY RANGES AND MEDIAN MARKET BENCHMARKS FOR THE CEO, EXECUTIVE MANAGEMENT, KEY POSITIONS, AND MOST STAFF ROLES. THE REPORT WAS REFERENCED AGAIN IN 2022 AND 2023 TO VALIDATE ONGOING PAY DECISIONS AND CONFIRM THAT EXECUTIVE COMPENSATION REMAINED ALIGNED WITH PREVAILING MARKET CONDITIONS. THE EXECUTIVE COMMITTEE OF THE BOARD, ACTING AS THE COMPENSATION COMMITTEE, CONTINUES TO OVERSEE AND APPROVE ANNUAL MERIT AND INCENTIVE PROGRAMS. GOALS ARE ESTABLISHED AT THE START OF EACH YEAR, PERFORMANCE IS REVIEWED AT YEAR-END, AND INCENTIVE AWARDS ARE APPROVED AND PAID IN ACCORDANCE WITH THESE RESULTS. THIS PROCESS PROVIDES AN APPROPRIATE LEVEL OF INDEPENDENT REVIEW, COMPARABILITY ANALYSIS, AND DOCUMENTATION TO SUPPORT FAIR AND REASONABLE COMPENSATION PRACTICES. GOALS WERE SET FOR ALL EMPLOYEES AT THE BEGINNING OF 2024, AND THEIR PERFORMANCE WAS MEASURED AGAINST GOALS AFTER 2024 CONCLUDED. BONUSES WHICH WERE ACCRUED AT 12/31/23 (BASED ON 2023 PERFORMANCE) WERE PAID IN 2024, AND THOSE WHICH WERE ACCRUED AT 12/31/24 (BASED ON 2024 PERFORMANCE) WERE PAID OUT IN 2025. THE INCENTIVE COMPENSATION (I.E. BONUS) AND MERIT INCREASE PROGRAMS WERE APPROVED BY THE EXECUTIVE COMMITTEE FOR BOTH 2024 & 2023, AND WERE ALSO DISTRIBUTED TO ALL EMPLOYEES. THE BY-LAWS CREATE A COMMITTEE OF THE BOARD WITH FULL POWERS OF THE BOARD TO REVIEW AND APPROVE THE COMPENSATION OF OFFICERS AND OTHER KEY EMPLOYEES. THE COMMITTEE, WHICH IS HEALTHIX'S EXECUTIVE COMMITTEE, CONSISTS OF TRUSTEES WHO HAVE NO CONNECTION TO HEALTHIX EXCEPT AS TRUSTEES AND THEY HAVE NO CONFLICTS AS TO MATTERS THEY CONSIDER. THE COMMITTEE MEETS SEVERAL TIMES A YEAR AS NEEDED, AND REVIEWS AND DETERMINES CEO COMPENSATION AS WELL AS THE OVERALL MERIT AND INCENTIVE COMPENSATION PROGRAMS FOR THE REST OF THE COMPANY. AS A RESULT OF THE INDEPENDENT SURVEYS INDICATED ABOVE, THE COMMITTEE HAS LET THE CEO DETERMINE COMPENSATION ADJUSTMENTS FOR OFFICERS AND KEY PERSONNEL, BASED ON THAT SURVEY'S RESULTS. THE EXECUTIVE COMMITTEE APPROVES INCENTIVE COMPENSATION FOR THE COMPANY'S SENIOR LEADERSHIP TEAM. THIS PROCESS WAS LAST UNDERTAKEN IN 2024. THE EXECUTIVE COMMITTEE'S APPROVAL FOR CEO COMPENSATION IS DOCUMENTED VIA THE COMMITTEE CHAIR'S SIGNATURE ON THE CEO'S PAYROLL CHANGE FORM. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS FORM 990 AND FORM 1023 AVAILABLE FOR PUBLIC INSPECTION AS REQUIRED UNDER SECTION 6104 OF THE INTERNAL REVENUE CODE. IT IS POSTED ON GUIDESTAR.ORG AND OTHER SIMILAR TYPES OF WEBSITES. IN ADDITION, THE FINANCIAL STATEMENTS, CONFLICT OF INTEREST POLICY, ARTICLES OF INCORPORATION AND BY-LAWS ARE ALSO AVAILABLE UPON WRITTEN REQUEST OR BY CALLING THE ORGANIZATION DIRECTLY. FORM 990, PART XII, LINE 2C: THE ORGANIZATION'S AUDIT AND COMPLIANCE COMMITTEE ASSUMES RESPONSIBILITY FOR THE OVERSIGHT OF THE AUDIT OF ITS FINANCIAL STATEMENTS AND SELECTION OF ITS INDEPENDENT AUDITORS. THE POLICY FOR SELECTION AND OVERSIGHT OF THE INDEPENDENT AUDITORS HAS NOT CHANGED SINCE LAST YEAR.