Core Viewpoint - DocGo Inc. is facing legal scrutiny due to allegations of false statements regarding the educational background of its former CEO and misleading claims about its business operations, leading to significant insider stock sales and a subsequent drop in stock price [2][3]. Group 1: Legal Issues - Schubert Jonckheer & Kolbe LLP is investigating potential legal claims against DocGo related to alleged false statements about the former CEO's educational qualifications and the company's business development efforts [1]. - A U.S. District Court ruling allows a securities fraud lawsuit against DocGo and its former CEO to proceed, citing "indisputably false" statements made with intent to defraud [2]. - The lawsuit claims that DocGo misled investors about the former CEO's graduate degree, its Medicaid enrollment efforts, and its relationship with UnitedHealthcare [2]. Group 2: Financial Impact - During the period of alleged misconduct, insiders sold approximately $4 million worth of DocGo stock [2]. - Following the revelation that the former CEO did not have a graduate degree and that DocGo failed to enroll anyone in Medicaid, the company's stock price fell by 25% [2].

Summary of Dotco Inc. (DocGo) Conference Call Company Overview - **Company Name**: Dotco Inc. (Ticker: DCGO) - **Industry**: Mobile healthcare and medical transportation - **Core Mission**: Deliver healthcare at any address, improving health outcomes by meeting patients where they are [3][9] Key Points and Arguments 1. **Service Model**: Dotco provides tech-driven mobile care, focusing on bringing healthcare to patients in their homes, offices, or community settings [6][10] 2. **Market Opportunity**: The total addressable market (TAM) for home healthcare is estimated at $265 billion, with a significant shift towards non-traditional providers [33] 3. **Patient Engagement**: The company has a high patient net promoter score of 87, indicating strong satisfaction among patients [11] 4. **Cost Savings**: Dotco has saved partners over $265 million through emergency department diversion programs, reducing unnecessary hospital visits [12] 5. **Growth Metrics**: In the last year, Dotco provided care across 31 states and the UK, with over 1.5 million patient interactions and 8.8 million miles traveled [12][13] 6. **Financial Performance**: The company reported $96 million in revenue for Q1, with an adjusted gross margin of 32.1% [20][21] 7. **Cash Position**: Dotco has over $100 million in cash on the balance sheet, up from approximately $58.9 million the previous year [20][22] 8. **Strategic Partnerships**: The company has signed contracts with major health plans, increasing the number of patients assigned to their services from 500,000 to over 900,000 [23] 9. **Chronic Disease Focus**: The CDC estimates that 90% of the $4.5 trillion in annual healthcare spending is for individuals with chronic diseases, highlighting the need for Dotco's services [24][25] 10. **Technology Integration**: Dotco's proprietary technology platform enhances efficiency in patient care delivery and integrates with hospital systems for better patient management [42][43] Additional Important Insights - **Emergency Response**: Dotco played a significant role during the COVID-19 pandemic and the migrant crisis, providing testing, vaccinations, and medical care [16][17] - **Vertical Integration**: The company has a vertically integrated model, combining technology, staffing, and clinical services to enhance patient care [47] - **Future Outlook**: Dotco is optimistic about the growth potential in mobile health and medical transportation, even as they wind down emergency services related to COVID-19 [44][45] - **Healthcare System Efficiency**: The company aims to reduce hospital readmissions and improve bed management through efficient medical transportation services [30][42] This summary encapsulates the key points discussed during the Dotco Inc. conference call, highlighting the company's innovative approach to healthcare delivery and its significant market potential.

Company Overview - DocGo is a leading provider of technology-enabled mobile healthcare[14] - The company delivers healthcare at any address[14] - DocGo has a proprietary technology backbone and visionary leadership team[9, 11] Financial Performance & Metrics - Total cash was $103.1 million as of March 31, 2025, up from $58.9 million on March 31, 2024[27] - Total revenue for Q1 2025 was $96.0 million[88] - Adjusted EBITDA loss for Q1 2025 was $3.9 million[87] - Adjusted gross margin for Q1 2025 was 32.1%[88] Market & Services - The total addressable market for at-home care in the U S is $265 billion[42] - The company's mobile health segment revenue for Q1 2025 was $45.2 million[88] - The company's medical transportation segment revenue for Q1 2025 was $50.8 million[88]

Financial Data and Key Metrics Changes - The company celebrated its ten-year anniversary and reported facilitating care across its ten millionth patient interaction, indicating significant growth in scale and impact [12][13] - The company achieved record levels in medical transportation trip volume in Q1 2025 and anticipates continued growth with new customers [16][17] Business Line Data and Key Metrics Changes - In the Care Gap closure program, total assigned lives increased to over 900,000, up from 700,000 just a quarter ago [20] - Visit volumes in the Care Gap program scaled from 2,500 visits in Q4 2023 to over 4,400 in Q4 2024, with projections of more than 11,500 visits in Q4 2025, representing a fourfold increase in two years [20] Market Data and Key Metrics Changes - The company provided services across 31 states in the US and the UK, with its proprietary tech platform calculating over 15 million estimated arrival times for customers [14] - The company’s care gap closure program achieved a net promoter score of 86, significantly higher than the healthcare industry benchmark of 58 [15] Company Strategy and Development Direction - The company aims to build a long-term sustainable business by focusing on its core medical transportation and mobile health services, which are expected to grow in 2025 and 2026 [16][26] - The strategic decision to enhance operations and technology is intended to support the growing needs of the customer base and ensure predictable long-term growth [15][26] Management's Comments on Operating Environment and Future Outlook - Management highlighted the increasing demand for services due to chronic diseases and the need for proactive care, which aligns with the company's offerings [22][23] - The company is positioned to address significant challenges in the US healthcare system, including high costs and clinician burnout, by providing accessible care [23][27] Other Important Information - The company acquired PTI Health, a mobile lab collection and phlebotomy business, which is expected to complete 125,000 blood draws in 2025 and over 200,000 in 2026 [21] - The company is actively managing SG&A expenses and believes it has the financial strength to fund its next growth phase [26] Q&A Session Summary Question: What are the key milestones achieved by the company recently? - The company recently facilitated care for its ten millionth patient and achieved record trip volumes in medical transportation [12][16] Question: How does the company plan to address the challenges in the healthcare system? - The company aims to provide proactive care to manage chronic diseases and reduce costs, thereby benefiting the overall healthcare ecosystem [23][27]

Summary of DocGo (DCGO) FY Conference Call - June 09, 2025 Company Overview - **Company**: DocGo (DCGO) - **Industry**: Mobile healthcare and medical transportation - **Core Business**: Provides medical transportation and mobile healthcare services, focusing on bringing care to patients where needed and transporting patients to care locations [4][5] Key Points and Arguments Business Model and Growth - **Medical Transportation**: The company has a robust medical transportation platform, which includes a tech platform that calculates estimated times of arrival (ETAs) for medical transport, having calculated 15 million ETAs last year [5][6] - **Crisis Response**: The company played a significant role during the COVID-19 pandemic and the migrant crisis in New York City, which helped establish its reputation and capabilities [6][7] - **Patient Care**: Over the past ten years, DocGo has cared for 10 million patients, focusing on expanding capabilities in home healthcare and medical transportation [8] - **Revenue Guidance**: The medical transit business is projected to generate $315 million at the midpoint, with growth driven by partnerships with large hospital systems [9][10] Growth Drivers - **Hospital Partnerships**: The company partners with major hospital systems, utilizing its tech platform to manage patient flow and transportation, which has led to organic growth [10][12] - **Market Expansion**: DocGo is expanding geographically, with recent expansions into Chattanooga and Dallas-Fort Worth, and is targeting a growth trajectory of 20% by increasing transit numbers from 575,000 to 700,000 [16][18] - **Service Expansion**: There is potential to deepen relationships with existing hospital systems by offering additional services beyond medical transportation, such as cardiac monitoring and transitional care management [15][19] Market Dynamics - **Fragmented Industry**: The medical transportation industry is highly fragmented, and DocGo's investment in technology allows it to capture market share by providing a more efficient service compared to traditional methods [21][22] - **Predictability in Operations**: The company’s model provides predictability for hospital systems, allowing them to manage patient flow more effectively, which is a significant value proposition [29][27] Financial Performance and Guidance - **Accounts Receivable**: The company has made progress in collecting outstanding receivables, reducing the balance from $150 million to $100 million [67] - **Municipal Revenue**: The company has removed municipal revenue from guidance due to unpredictability but expects to report it separately as it comes in [70][71] Payer-Facing Business - **Care Gap Services**: The company is expanding its payer-facing business by addressing care gaps for patients who are chronically ill and have difficulty accessing care [35][36] - **Patient Engagement**: DocGo has successfully engaged with a growing list of patients, now totaling 900,000, to close care gaps, which is a significant growth opportunity [39][43] - **Revenue Model**: Currently, the company operates on a fee-for-service model, with plans to transition to value-based payments as it establishes a primary care practice [46][44] Operational Efficiency - **Labor Model**: The company employs a unique model where licensed practical nurses (LPNs) are dispatched to patients' homes, directed by centralized healthcare providers, optimizing resource use [61][62] - **Cost Management**: DocGo is rationalizing its SG&A expenses while maintaining capabilities for future growth, particularly in the payer and provider verticals [79][80] Additional Important Insights - **Patient Management**: The company emphasizes the importance of patient bed management for hospitals, which can save significant costs associated with building new capacity [28][29] - **Long-Term Relationships**: DocGo aims to fill the void for patients without primary care providers, establishing long-term relationships where necessary [56][57] - **Future Outlook**: The company is optimistic about its growth trajectory, with plans to expand services and geographic reach while maintaining a focus on operational efficiency and patient care [54][55]

Company Performance - DocGo Inc. reported a quarterly loss of $0.09 per share, missing the Zacks Consensus Estimate of a loss of $0.01, and compared to earnings of $0.09 per share a year ago, representing an earnings surprise of -800% [1] - Motion Acquisition posted revenues of $96.03 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 0.90%, and down from year-ago revenues of $192.09 million [2] - Over the last four quarters, Motion Acquisition has surpassed consensus EPS estimates just once and has not been able to beat consensus revenue estimates [2] Stock Performance - Motion Acquisition shares have lost approximately 43.4% since the beginning of the year, while the S&P 500 has declined by -4.3% [3] - The current consensus EPS estimate for the coming quarter is $0.01 on $92.8 million in revenues, and $0.07 on $401.83 million in revenues for the current fiscal year [7] Industry Outlook - The Medical Services industry is currently in the top 22% of over 250 Zacks industries, indicating a favorable outlook as the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8] - The estimate revisions trend for Motion Acquisition is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [6]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $96 million, down from $192.1 million in Q1 2024, primarily due to the decline in the government vertical, especially in migrant-related projects [18] - The company recorded a net loss of $11.1 million in Q1 2025 compared to a net income of $10.6 million in Q1 2024, reflecting the drop in revenues [19] - Adjusted EBITDA for Q1 2025 was a loss of $3.9 million, down from adjusted EBITDA of $24.1 million in Q1 2024 [20] - SG&A as a percentage of total revenues was 46.7% in Q1 2025, compared to 26.8% in Q1 2024, indicating a significant increase due to the decline in migrant revenues [23] Business Line Data and Key Metrics Changes - Mobile health revenue for Q1 2025 was $45.2 million, down from $143.9 million in Q1 2024, driven by the anticipated wind down of migrant revenues [19] - Medical transportation services revenue increased to $50.8 million in Q1 2025 from $48.2 million in Q1 2024, supported by growth in several markets [19] - The medical transportation business is expected to generate $225 million in revenue for 2025, while the payer and provider business is projected to generate $50 million [17] Market Data and Key Metrics Changes - The company has seen growth in medical transportation services in markets including Delaware, Tennessee, Pennsylvania, New Jersey, Wisconsin, Upstate New York, and the UK [19] - The payer and provider vertical has exceeded 900,000 assigned lives, up from 700,000 just a quarter ago, indicating strong demand [10] Company Strategy and Development Direction - The company has removed its government population health vertical from its 2025 guidance due to ongoing policy changes and budget cuts, leading to substantial uncertainty [5][7] - The focus is on building the company around innovative solutions for payers, providers, and health systems, particularly in mobile health and medical transportation [8] - The company is undertaking cost-cutting measures while investing in growing segments, aiming for positive adjusted EBITDA in 2026 [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of the medical transportation and payer/provider verticals despite the challenges in the government sector [8][17] - The anticipated adjusted EBITDA loss for 2025 is primarily due to elevated SG&A levels during the transition period [15] - Management highlighted the importance of patient satisfaction and the positive impact of their services on healthcare outcomes, which is expected to drive future growth [40][70] Other Important Information - The company plans to report any significant non-migrant municipal work as upside revenue in future quarters [17] - The balance sheet remains healthy, with expectations of positive cash flow from operations despite projected losses [16][25] - The company has initiated a stock buyback program, repurchasing nearly 2 million shares for approximately $5.8 million [26] Q&A Session Summary Question: What is the expected government revenue for the remainder of the year? - Management clarified that government population health revenues have been removed from guidance, and any new deployments will be reported separately as upside [30][31] Question: How is the payer business performing? - The payer business is experiencing healthy demand, with plans focused on reducing medical loss ratios and improving quality metrics [38][40] Question: What caused the revenue miss in Q1? - The revenue miss was attributed to the government vertical, with delays in contract launches and RFP responses impacting expected revenues [46][51] Question: What is the margin profile of the migrant-related revenue? - The margin for the migrant program was about 34%, consistent with previous quarters, while the non-migrant mobile health segment had higher margins [75] Question: Are there risks from tariffs on medical equipment? - Management indicated that tariffs could impact the cost of maintaining the fleet and procuring new vehicles, but they are well-positioned to manage these costs [77][78]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $96 million, down from $192.1 million in Q1 2024, primarily due to the decline in the government vertical, especially in migrant-related projects [20][21] - The company recorded a net loss of $11.1 million in Q1 2025 compared to a net income of $10.6 million in Q1 2024, reflecting the drop in revenues [21] - Adjusted EBITDA for Q1 2025 was a loss of $3.9 million, down from an adjusted EBITDA of $24.1 million in Q1 2024 [22] Business Line Data and Key Metrics Changes - Mobile health revenue for Q1 2025 was $45.2 million, down from $143.9 million in Q1 2024, driven by the anticipated wind down of migrant revenues [21] - Medical transportation services revenue increased to $50.8 million in Q1 2025 from $48.2 million in Q1 2024, supported by growth in several markets [21] - The medical transportation business is expected to have adjusted EBITDA of greater than $15 million in 2025, with a projected total of approximately 575,000 transports by the end of 2025 [11][19] Market Data and Key Metrics Changes - The company has seen substantial growth in its payer and provider vertical, exceeding 900,000 assigned lives, up from 700,000 just a quarter ago [12] - The number of care gap closure and transitional care management visits is projected to grow from over 4,400 in Q4 2024 to over 11,500 in Q4 2025, indicating a significant expansion [13] Company Strategy and Development Direction - The company has removed its government population health vertical from its 2025 guidance due to ongoing policy changes and budget cuts, leading to substantial uncertainty [7][9] - The focus is on building the company around innovative solutions for payers, providers, and health systems, particularly in mobile health and medical transportation [10] - Cost-cutting measures have been initiated, with SG&A reduced by approximately $3.1 million sequentially in Q1 2025, while still investing in growth areas [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of the medical transportation and payer/provider verticals, despite the challenges in the government sector [10][19] - The company anticipates positive cash flow from operations and expects to exit the year with over $110 million in cash, despite projecting a consolidated adjusted EBITDA loss for the year [18][27] Other Important Information - The company has initiated a stock buyback program, repurchasing nearly 2 million shares for approximately $5.8 million in Q1 2025 [28] - The balance sheet remains healthy, with expectations for improved cash flow from operations as accounts receivable from migrant programs are collected [27] Q&A Session Summary Question: What is the expected government revenue for the remainder of the year? - Management clarified that government population health revenues have been removed from guidance, and any new deployments will be reported separately as upside [32][33] Question: How is the company balancing SG&A cuts with staffing for future government engagements? - Management is restructuring shared services for savings while reinvesting in growing parts of the business to ensure readiness for future growth [34][35] Question: What is the margin profile of the migrant-related revenue compared to core business? - The margins on the migrant program were about 34%, while the non-migrant mobile health segment had a gross margin of 35.9% in Q4 2024 [80] Question: Are there any risks from tariffs on medical equipment? - Management indicated that tariffs could impact the cost of maintaining the fleet and procuring new vehicles, but they are in a good position to manage these costs [81][82]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $96 million, down from $192.1 million in Q1 2024, primarily due to the decline in the government vertical, especially in migrant-related projects [19] - The company recorded a net loss of $11.1 million in Q1 2025 compared to a net income of $10.6 million in Q1 2024 [20] - Adjusted EBITDA for Q1 2025 was a loss of $3.9 million, down from an adjusted EBITDA of $24.1 million in Q1 2024 [21] - The adjusted gross margin for Q1 2025 was 32.1%, compared to 35% in Q1 2024 [21] Business Line Data and Key Metrics Changes - Mobile health revenue for Q1 2025 was $45.2 million, down from $143.9 million in Q1 2024, driven by the anticipated wind down of migrant revenues [20] - Medical transportation services revenue increased to $50.8 million in Q1 2025 from $48.2 million in Q1 2024, supported by growth in several markets [20] - The medical transportation business is expected to have an adjusted EBITDA of greater than $15 million in 2025, with projected total transports reaching approximately 575,000 by the end of 2025 [10] Market Data and Key Metrics Changes - The company has seen substantial growth in its payer and provider vertical, exceeding 900,000 assigned lives, up from 700,000 just a quarter ago [11] - The number of care gap closure and transitional care management visits is projected to grow from approximately 4,400 in Q4 2024 to over 11,500 in Q4 2025 [12] Company Strategy and Development Direction - The company has removed its government population health vertical from its 2025 guidance due to ongoing policy changes and budget cuts, leading to substantial uncertainty [6] - The focus is on building the company around innovative solutions for payers, providers, and health systems, particularly in mobile health and medical transportation [9] - Cost-cutting measures have been initiated, with SG&A reduced by approximately $3.1 million sequentially in Q1 2025, while the company plans to aggressively cut SG&A over the next several quarters [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of the medical transportation and payer/provider verticals despite the challenges in the government sector [9] - The company anticipates positive cash flow from operations and expects to exit the year with over $110 million in cash, despite projecting a consolidated adjusted EBITDA loss for the year [17] - Management highlighted the importance of their technology platform in securing new contracts and improving patient outcomes [11] Other Important Information - The company has initiated a stock buyback program, repurchasing nearly 2 million shares for approximately $5.8 million in Q1 2025 [27] - The balance sheet remains healthy, with expectations for improved cash flow from operations as accounts receivable from migrant programs are collected [26] Q&A Session Summary Question: What is the expected government revenue for the remainder of the year? - Management clarified that government population health revenues have been removed from guidance, and any new deployments will be reported separately as upside [31][32] Question: How is the company balancing SG&A cuts with staffing for future government engagements? - Management indicated they are restructuring shared services for savings while reinvesting in growing parts of the business to prepare for future growth [33][34] Question: What is the demand outlook for the payer business? - Management noted healthy demand in the payer segment, with proactive healthcare services aimed at reducing medical loss ratios and improving quality metrics [39][41] Question: What caused the revenue miss in Q1? - The revenue miss was attributed to the government vertical, with delays in contract launches and RFP responses impacting expected revenues [48][55] Question: What is the margin profile of the migrant-related revenue? - The margins on the migrant program were about 34%, consistent with previous quarters, while the non-migrant mobile health segment had higher margins [78] Question: Are there risks from tariffs on medical equipment? - Management acknowledged potential tariff impacts on fleet procurement and maintenance but expressed confidence in their fleet management capabilities [80]

[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) This section presents the company's financial statements, management's discussion and analysis, market risk disclosures, and controls and procedures [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The company experienced a significant revenue decline and a shift to net loss in Q1 2025, with decreased assets and equity, while operating cash flow turned positive Condensed Consolidated Balance Sheet Highlights | Metric | March 31, 2025 (Unaudited) ($) | December 31, 2024 (Audited) ($) | | :--- | :--- | :--- | | **Total Current Assets** | 262,531,431 | 304,486,263 | | **Total Assets** | 430,792,998 | 455,621,132 | | **Total Current Liabilities** | 107,571,098 | 121,806,577 | | **Total Liabilities** | 128,868,195 | 140,442,002 | | **Total Stockholders' Equity** | 301,924,803 | 315,179,130 | Condensed Consolidated Statements of Operations Highlights | Metric | Three Months Ended March 31, 2025 ($) | Three Months Ended March 31, 2024 ($) | | :--- | :--- | :--- | | **Revenues, net** | 96,033,055 | 192,087,529 | | **(Loss) income from operations** | (13,997,438) | 15,875,367 | | **Net (loss) income** | (11,079,300) | 10,603,379 | | **Net (loss) income per share - Diluted** | (0.09) | 0.10 | Condensed Consolidated Statements of Cash Flows Highlights | Metric | Three Months Ended March 31, 2025 ($) | Three Months Ended March 31, 2024 ($) | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | 9,655,467 | (10,639,744) | | **Net cash used in investing activities** | (5,733,052) | (1,699,741) | | **Net cash used in financing activities** | (8,518,416) | (881,579) | | **Net decrease in cash and restricted cash** | (4,278,263) | (13,324,123) | [Notes to Unaudited Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section details the company's segment operations, customer concentration, recent acquisition, and ongoing legal proceedings, alongside key accounting policies - The company operates in three segments: Mobile Health Services, Transportation Services, and Corporate. The Corporate segment handles shared services and does not generate revenue[28](index=28&type=chunk) - The company has significant customer concentration, with one customer accounting for **47% of revenues** and **45% of net accounts receivable** for the three months ended March 31, 2025[43](index=43&type=chunk) - On February 10, 2025, the Company acquired **100% of Professional Technicians, LLC (PTI)** for **$4.0 million** in cash consideration and up to **$1.5 million** in contingent consideration[128](index=128&type=chunk) - The company is involved in several legal proceedings, including California Labor Actions, a Stockholder Action, and a Cybersecurity Action, with some reaching settlement in principle[231](index=231&type=chunk)[234](index=234&type=chunk)[237](index=237&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=48&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Result%20of%20Operations) Management discusses a 50% revenue decrease in Q1 2025, primarily from the Mobile Health segment, leading to an operating loss, while Transportation Services showed modest growth Q1 2025 vs Q1 2024 Results of Operations ($ in Millions) | Metric | Q1 2025 ($ in Millions) | Q1 2024 ($ in Millions) | Change ($ in Millions) | Change % | | :--- | :--- | :--- | :--- | :--- | | **Revenues, net** | 96.0 | 192.1 | (96.1) | (50.0)% | | **Cost of revenues** | 65.2 | 124.8 | (59.6) | (47.8)% | | **(Loss) income from operations** | (14.0) | 15.9 | (29.9) | (188.1)% | | **Net (loss) income** | (11.1) | 10.6 | (21.7) | (204.7)% | - Mobile Health Services revenue decreased by **$98.7 million (68.6%)** YoY, primarily due to the ongoing wind-down of migrant-related services in New York[280](index=280&type=chunk) - Transportation Services revenue increased by **$2.6 million (5.4%)** YoY, driven by a **5.9% increase in trip volumes**, although the average trip price decreased from **$400 to $378**[281](index=281&type=chunk) - The company generated **$9.6 million** in cash from operations in Q1 2025, a significant improvement from a **$10.6 million** use of cash in Q1 2024, mainly due to a **$31.4 million decrease in accounts receivable**[302](index=302&type=chunk)[303](index=303&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=66&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from interest rates and significant customer concentration, with limited foreign exchange exposure, and does not use hedging instruments - The company is subject to interest rate risk on its Revolving Facility, with **$30 million** outstanding as of March 31, 2025, where a hypothetical **10% change** would have had a neutral net impact on financial statements for the quarter[339](index=339&type=chunk) - Foreign exchange risk from U.K. operations is considered limited, with a hypothetical **10% change** in the exchange rate in Q1 2025 changing total revenues by approximately **1.1%**[340](index=340&type=chunk) - Significant customer concentration risk exists, with one customer accounting for **47% of revenues** and **45% of net accounts receivable** in Q1 2025, compared to two customers accounting for **39% and 32% of revenues** respectively in Q1 2024[342](index=342&type=chunk) [Controls and Procedures](index=67&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were **effective** as of the end of the period covered by the report[343](index=343&type=chunk) - No changes occurred in the company's internal control over financial reporting during the quarter ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, internal controls[344](index=344&type=chunk) [PART II - OTHER INFORMATION](index=69&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, equity security sales, and other required disclosures [Legal Proceedings](index=69&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in several legal actions, including resolved California Labor Actions, ongoing Stockholder Action, and a settled Cybersecurity Action - The company is subject to legal proceedings arising in the ordinary course of business, as detailed in Note 19 of the financial statements[348](index=348&type=chunk) [Risk Factors](index=69&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes have been made to the risk factors disclosed in the **2024 Annual Report on Form 10-K**[350](index=350&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=69&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company actively repurchased shares under its program in Q1 2025, with approximately **$16.3 million** remaining for future repurchases Share Repurchases in Q1 2025 | Month | Total Number of Shares Purchased | Average Price Paid per Share ($) | Approximate Dollar Value of Shares that May Yet be Purchased ($) | | :--- | :--- | :--- | :--- | | January 2025 | — | — | 22,045,655 | | February 2025 | — | — | 22,045,655 | | March 2025 | 1,953,169 | 2.92 | 16,332,764 | | **Total** | **1,953,169** | **2.92** | **16,332,764** | - The Board authorized a new share repurchase program for up to **$26 million**, which expires on **June 30, 2025**[352](index=352&type=chunk) [Defaults Upon Senior Securities](index=70&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) None [Mine Safety Disclosures](index=70&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Not applicable [Other Information](index=70&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter - No directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement or non-Rule 105b-1 trading arrangement during the quarter[361](index=361&type=chunk) [Exhibits](index=70&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including the company's certificate of incorporation, bylaws, and officer certifications, as well as Inline XBRL data files