PART I - FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents DocGo Inc.'s unaudited condensed consolidated financial statements for Q1 2023 and 2022, encompassing balance sheets, statements of operations, equity changes, cash flows, and detailed notes on accounting policies, operations, and acquisitions [Unaudited Condensed Consolidated Balance Sheets](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) This table presents DocGo Inc.'s financial position, detailing assets, liabilities, and equity as of March 31, 2023, and December 31, 2022 | Metric | March 31, 2023 (Unaudited, $) | December 31, 2022 (Audited, $) | | :-------------------------------- | :-------------------------- | :-------------------------- | | Cash and cash equivalents | $120,056,897 | $157,335,323 | | Accounts receivable, net | $131,599,567 | $102,995,397 | | Total current assets | $258,393,842 | $271,080,905 | | Total assets | $407,545,176 | $393,277,628 | | Total current liabilities | $108,974,683 | $100,158,490 | | Total liabilities | $123,624,152 | $114,350,237 | | Total stockholders' equity | $283,921,024 | $278,927,391 | [Unaudited Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20%28Loss%29%20Income) This table outlines DocGo Inc.'s financial performance, including revenue, expenses, and net income (loss) for the three months ended March 31, 2023, and 2022 | Metric | Three Months Ended March 31, 2023 ($) | Three Months Ended March 31, 2022 ($) | | :-------------------------------------------------------- | :-------------------------------- | :-------------------------------- | | Revenue, net | $113,002,703 | $117,891,552 | | Total expenses | $119,905,290 | $107,796,987 | | (Loss) Income from operations | $(6,902,587) | $10,094,565 | | Net (loss) income | $(3,918,790) | $9,372,437 | | Net (loss) income attributable to stockholders of DocGo Inc. and Subsidiaries | $(3,465,670) | $10,629,694 | | Net (loss) income per share - Basic | $(0.03) | $0.11 | | Net (loss) income per share - Diluted | $(0.03) | $0.09 | [Unaudited Condensed Consolidated Statements of Changes in Stockholders' Equity](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) This section details the changes in DocGo Inc.'s stockholders' equity, including net loss, additional paid-in capital, and foreign currency adjustments for the three months ended March 31, 2023 - For the three months ended March 31, 2023, DocGo Inc.'s total stockholders' equity increased from **$278,927,391** at December 31, 2022, to **$283,921,024** Key changes included an increase in additional paid-in capital by **$8,598,429**, a net loss attributable to stockholders of **$(3,465,670)**, and a foreign currency translation adjustment of **$243,658**[18](index=18&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This table summarizes DocGo Inc.'s cash inflows and outflows from operating, investing, and financing activities for the three months ended March 31, 2023, and 2022 | Cash Flow Activity | Three Months Ended March 31, 2023 ($) | Three Months Ended March 31, 2022 ($) | | :----------------- | :-------------------------------- | :-------------------------------- | | Operating Activities | $(23,117,951) | $18,264,682 | | Investing Activities | $(1,689,495) | $(1,137,040) | | Financing Activities | $(11,951,059) | $2,496,798 | | Net (decrease) increase in cash and restricted cash | $(36,590,356) | $19,618,577 | | Cash and restricted cash at end of period | $127,518,718 | $198,724,307 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed disclosures on DocGo's accounting policies, business operations, acquisitions, financial instruments, and other significant financial events for the reporting period [1. Description of Organization and Business Operations](index=12&type=section&id=1.%20Description%20of%20Organization%20and%20Business%20Operations) DocGo Inc. is a healthcare transportation and mobile health services company operating in the US and UK, utilizing proprietary technology. The company was formed through a reverse recapitalization in November 2021, with Ambulnz, Inc. being the accounting acquirer - DocGo Inc. provides healthcare transportation and mobile health services in major metropolitan cities in the United States and the United Kingdom, leveraging proprietary dispatch and communication technology[29](index=29&type=chunk) - The company's formation involved a business combination in November 2021, where Motion Acquisition Corp. merged with Ambulnz, Inc., with Ambulnz, Inc. treated as the accounting acquirer in a reverse recapitalization[26](index=26&type=chunk)[35](index=35&type=chunk) [2. Summary of Significant Accounting Policies](index=13&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) This section outlines DocGo's key accounting policies, including the basis of presentation under U.S. GAAP, principles of consolidation (including a Variable Interest Entity, MD1 Medical Care P.C.), foreign currency translation, use of estimates, self-insurance reserves, and fair value measurements. It also details policies for revenue recognition, stock-based compensation, earnings per share, equity method investments, and leases, and notes the company's status as an 'emerging growth company' - DocGo consolidates MD1 Medical Care P.C. as a Variable Interest Entity (VIE) because it has the power to direct MD1's activities and the obligation to absorb its losses, despite not having direct equity ownership[37](index=37&type=chunk) - The company's revenue is primarily derived from Transportation Services and Mobile Health Services, recognized when performance obligations are satisfied, typically based on fixed or usage-based fees[84](index=84&type=chunk)[85](index=85&type=chunk) Revenue Disaggregation by Geography and Service Line (Three Months Ended March 31) | Revenue Breakdown | 2023 ($) | 2022 ($) | | :---------------- | :------------ | :------------ | | **Primary Geographical Markets** | | | | United States | $98,909,521 | $115,053,431 | | United Kingdom | $14,093,182 | $2,838,121 | | **Major Segments/Service Lines** | | | | Transportation Services | $40,055,946 | $27,812,510 | | Mobile Health | $72,946,757 | $90,079,042 | | **Total revenue** | $113,002,703 | $117,891,552 | - DocGo is an 'emerging growth company' and has elected not to opt out of the extended transition period for complying with new or revised financial accounting standards, which may affect comparability with other public companies[48](index=48&type=chunk)[50](index=50&type=chunk) - The Company had one customer that accounted for approximately **46% of sales** and **62% of net accounts receivable** for the three months ended March 31, 2023, indicating a significant customer concentration[45](index=45&type=chunk) [3. Property and Equipment, net](index=24&type=section&id=3.%20Property%20and%20Equipment%2C%20net) DocGo's net property and equipment increased to $21.7 million as of March 31, 2023, from $21.3 million at December 31, 2022, with transportation equipment being the largest component. Depreciation expenses significantly increased year-over-year | Asset Category | March 31, 2023 ($) | December 31, 2022 ($) | | :--------------- | :------------- | :---------------- | | Transportation equipment | $21,907,460 | $20,773,862 | | Medical equipment | $5,835,273 | $5,177,520 | | Total property and equipment, net | $21,729,460 | $21,258,175 | | Depreciation expenses (3 months ended March 31) | $1,482,610 | $711,878 | [4. Acquisition of Businesses and Asset Acquisitions](index=24&type=section&id=4.%20Acquisition%20of%20Businesses%20and%20Asset%20Acquisitions) DocGo completed several acquisitions in 2022 and early 2023, including Government Medical Services, Exceptional Medical Transportation, Ryan Brothers Fort Atkinson, Community Ambulance Services, Location Medical Services, and Cardiac RMS. These acquisitions expanded its medical transportation and mobile health services, with Cardiac RMS (acquired March 31, 2023) marking an entry into cardiac remote monitoring - On March 31, 2023, DocGo acquired **51% of Cardiac RMS, LLC (CRMS)** for **$10 million** in cash and stock, with an additional **$15.8 million** probable contingent consideration, expanding into cardiac implantable electronic device remote monitoring and virtual care management[113](index=113&type=chunk) - In 2022, DocGo acquired Government Medical Services, Exceptional Medical Transportation, Ryan Brothers Fort Atkinson, Community Ambulance Service Ltd (UK), and Location Medical Services, LLC, totaling **$94.97 million** in consideration, primarily to expand medical transportation services and market presence[106](index=106&type=chunk)[107](index=107&type=chunk)[108](index=108&type=chunk)[109](index=109&type=chunk)[112](index=112&type=chunk)[114](index=114&type=chunk) - The acquisition of Community Ambulance Service Ltd resulted in a gain on bargain purchase of **$1,593,612** due to acquired net assets exceeding the purchase price[109](index=109&type=chunk)[115](index=115&type=chunk) [5. ABC Transaction and Held for Sale](index=28&type=section&id=5.%20ABC%20Transaction%20and%20Held%20for%20Sale) Ambulnz Health, LLC (Health) commenced an assignment for the benefit of creditors (ABC) on February 3, 2023, a state-governed liquidation process. As of December 31, 2022, Health's assets and liabilities were classified as held for sale, reflecting the company's intention to liquidate - Ambulnz Health, LLC (Health) initiated an assignment for the benefit of creditors (ABC) on February 3, 2023, a state-law governed liquidation process, leading to the termination of employees and transfer of assets to an assignee[117](index=117&type=chunk)[118](index=118&type=chunk) - As of December 31, 2022, Health's assets and liabilities, including **$4.48 million** in assets and **$4.48 million** in liabilities, were classified as held for sale at the lower of carrying value or fair value less costs to sell[119](index=119&type=chunk)[122](index=122&type=chunk) [6. Goodwill](index=29&type=section&id=6.%20Goodwill) DocGo recognized a non-cash goodwill impairment charge of $2.9 million for its Health reporting unit in 2022 due to the ABC transaction. Despite this, the carrying value of goodwill increased to $47.7 million by March 31, 2023, primarily from new acquisitions - A non-cash goodwill impairment charge of **$2,921,958** was recognized for the Health reporting unit in 2022, primarily due to the ABC filing, which had no impact on cash flow or liquidity[123](index=123&type=chunk)[124](index=124&type=chunk) Goodwill Carrying Value Changes | Metric | Amount ($) | | :-------------------------- | :------------- | | Balance as of December 31, 2022 | $38,900,413 | | Goodwill acquired during the period | $8,642,190 | | CTA | $126,051 | | Balance as of March 31, 2023 | $47,668,654 | [7. Intangibles](index=31&type=section&id=7.%20Intangibles) DocGo's net intangible assets significantly increased to $38.9 million as of March 31, 2023, from $23.0 million at December 31, 2022, primarily driven by additions to customer relationships and operating licenses from acquisitions. Amortization expenses also rose year-over-year | Intangible Asset Category | March 31, 2023 (Net Carrying Amount, $) | December 31, 2022 (Net Carrying Amount, $) | | :------------------------ | :----------------------------------- | :------------------------------------ | | Operating licenses | $9,399,004 | $8,799,004 | | Customer relationship | $27,322,949 | $11,803,653 | | Total intangibles, net | $38,939,054 | $22,969,246 | | Amortization expenses (3 months ended March 31) | $1,365,636 | $633,363 | - The estimated future amortization expense for definite life intangible assets is projected to be **$3.1 million** for the remainder of 2023 and **$3.8 million** in 2024[130](index=130&type=chunk) [8. Accrued Liabilities](index=33&type=section&id=8.%20Accrued%20Liabilities) DocGo's total accrued liabilities decreased slightly to $30.5 million as of March 31, 2023, from $31.6 million at December 31, 2022. Accrued subcontractors and accrued general expenses remain the largest components | Accrued Liability Category | March 31, 2023 ($) | December 31, 2022 ($) | | :------------------------- | :------------- | :---------------- | | Accrued subcontractors | $8,889,201 | $8,101,150 | | Accrued general expenses | $7,080,279 | $11,436,462 | | Accrued workers compensation and insurance liabilities | $6,564,201 | $3,766,469 | | Total accrued liabilities | $30,544,082 | $31,573,031 | [9. Line of Credit](index=33&type=section&id=9.%20Line%20of%20Credit) DocGo entered into a new $90 million revolving loan and security agreement in November 2022, maturing in November 2027, with an option to increase by $50 million. This facility replaced a previous $12 million line of credit that was repaid in December 2022. As of March 31, 2023, no amounts were outstanding under the new facility - On November 1, 2022, DocGo secured a new revolving loan and security agreement with a maximum advance of **$90 million**, maturing on November 1, 2027, and an option to increase by **$50 million**[135](index=135&type=chunk) - The new revolving facility is secured by a first-priority lien on substantially all of the Company's present and future personal and intangible assets and is subject to financial covenants[135](index=135&type=chunk) - As of March 31, 2023, DocGo had not made any draws under the new **$90 million** revolving facility, and no amounts were outstanding[135](index=135&type=chunk) [10. Notes Payable](index=34&type=section&id=10.%20Notes%20Payable) DocGo's total notes payable remained stable at approximately $1.9 million as of March 31, 2023, primarily consisting of equipment and financing loans with interest rates between 2.5% and 8%, maturing through 2027. The current portion of notes payable was $0.65 million | Metric | March 31, 2023 ($) | December 31, 2022 ($) | | :-------------------------------- | :------------- | :---------------- | | Equipment and financing loans payable | $1,922,223 | $1,901,514 | | Total notes payable | $1,922,223 | $1,901,514 | | Less: current portion | $(649,808) | $(664,913) | | Total non-current portion | $1,272,415 | $1,236,601 | - Future minimum annual maturities of notes payable are **$425,309** for the remainder of 2023, **$478,492** in 2024, and **$463,573** in 2025[139](index=139&type=chunk) [11. Business Segment Information](index=35&type=section&id=11.%20Business%20Segment%20Information) Beginning Q1 2023, DocGo reports in three segments: Transportation Services, Mobile Health Services, and Corporate. While Mobile Health Services generated higher revenue in Q1 2022, Transportation Services saw significant growth in Q1 2023. The Corporate segment, introduced for shared services, reported a substantial operating loss due to increased infrastructure and stock compensation costs - DocGo now reports in three operating segments: Transportation Services, Mobile Health Services, and Corporate, with the Corporate segment introduced in Q1 2023 to analyze shared services and personnel[141](index=141&type=chunk) Operating Results by Business Segment (Three Months Ended March 31) | Metric | Transportation Services (2023, $) | Mobile Health Services (2023, $) | Corporate (2023, $) | Total (2023, $) | Transportation Services (2022, $) | Mobile Health Services (2022, $) | Corporate (2022, $) | Total (2022, $) | | :-------------------------- | :----------------------------- | :---------------------------- | :--------------- | :----------- | :----------------------------- | :---------------------------- | :--------------- | :----------- | | Revenues | $40,055,946 | $72,946,757 | $- | $113,002,703 | $27,812,510 | $90,079,042 | $- | $117,891,552 | | Income (loss) from operations | $1,083,040 | $13,188,159 | $(21,173,786) | $(6,902,587) | $(2,538,760) | $23,402,298 | $(10,768,973) | $10,094,565 | | Total assets | $118,998,556 | $152,352,877 | $136,193,743 | $407,545,176 | $73,244,007 | $48,736,456 | $203,215,841 | $325,196,304 | - The Corporate segment's operating loss significantly increased from **$(10.8) million** in Q1 2022 to **$(21.2) million** in Q1 2023, primarily due to higher stock compensation and investments in corporate infrastructure[143](index=143&type=chunk) [12. Equity](index=35&type=section&id=12.%20Equity) DocGo's share repurchase program, authorized in May 2022 for up to $40 million, saw no repurchases in Q1 2023. In 2022, the company repurchased 536,839 shares for $3.7 million, which were subsequently cancelled - DocGo's share repurchase program, authorized for up to **$40 million**, resulted in no share repurchases during the first quarter of 2023[145](index=145&type=chunk) - In 2022, the company repurchased **536,839 shares** of common stock for **$3,731,712**, which were subsequently cancelled[145](index=145&type=chunk) [13. Stock Based Compensation](index=37&type=section&id=13.%20Stock%20Based%20Compensation) As of March 31, 2023, DocGo had 11.2 million stock options outstanding with a weighted-average exercise price of $7.15, and 3.2 million options vested. Unrecognized compensation for stock options was $32.1 million, expected to be recognized over approximately 2 years. For RSUs, 225,579 units were outstanding, with $1.9 million in unrecognized compensation cost Stock Option Activity (Three Months Ended March 31, 2023) | Metric | Options Shares | Weighted Average Exercise Price ($) | | :-------------------------- | :------------- | :------------------------------ | | Balance as of Dec 31, 2022 | 11,571,308 | $7.11 | | Exercised during the year | (96,101) | $2.60 | | Cancelled during the year | (267,539) | $7.74 | | Balance as of March 31, 2023 | 11,207,668 | $7.15 | | Options vested and exercisable at March 31, 2023 | 3,153,550 | $6.12 | - Total unrecognized compensation related to unvested stock option awards was **$32,118,556** as of March 31, 2023, expected to be recognized over a weighted-average period of approximately **2 years**[150](index=150&type=chunk) - For Restricted Stock Units (RSUs), **225,579 units** were non-vested as of March 31, 2023, with **$1,934,998** in unrecognized compensation cost expected to be recognized over approximately **1.1 years**[153](index=153&type=chunk)[154](index=154&type=chunk) [14. Leases](index=38&type=section&id=14.%20Leases) DocGo's operating lease ROU assets increased to $9.4 million and liabilities to $9.7 million as of March 31, 2023, with a weighted average remaining lease term of 4.86 years. Finance lease ROU assets were $9.2 million and liabilities $8.8 million, with a weighted average remaining lease term of 3.66 years. Cash payments for operating leases increased significantly year-over-year Operating Lease Position (March 31, 2023) | Metric | March 31, 2023 ($) | December 31, 2022 ($) | | :------------------------ | :------------- | :---------------- | | Lease right-of-use assets | $9,375,132 | $9,074,277 | | Total lease liability | $9,668,609 | $9,366,006 | | Weighted average remaining lease term | 4.86 years | | | Weighted average discount rate | 5.99% | | | Operating lease expense (3 months ended March 31) | $756,245 | $462,625 | Finance Lease Position (March 31, 2023) | Metric | March 31, 2023 ($) | December 31, 2022 ($) | | :------------------------ | :------------- | :---------------- | | Lease right-of-use assets | $9,170,429 | $9,039,663 | | Total lease liability | $8,834,857 | $8,646,803 | | Weighted average remaining lease term | 3.66 years | | | Weighted average discount rate | 5.95% | | | Finance lease payment (3 months ended March 31) | $744,030 | $622,575 | - In June 2022, the Company recognized a **$1.4 million** gain on lease remeasurement due to a reassessment of finance lease estimates for vehicle mileage and residual value, leading to a decision to purchase vehicles at lease end[167](index=167&type=chunk) [15. Other Income (Expenses)](index=41&type=section&id=15.%20Other%20Income%20%28Expenses%29) DocGo reported total other income of $853,927 for the three months ended March 31, 2023, a significant improvement from a loss of $(281,949) in the prior year. This was primarily driven by a substantial increase in net interest income | Other Income (Expenses) Category | Three Months Ended March 31, 2023 ($) | Three Months Ended March 31, 2022 ($) | | :------------------------------- | :-------------------------------- | :-------------------------------- | | Interest income (expense), net | $809,172 | $(135,606) | | Loss on remeasurement of warrant liabilities | $- | $(58,749) | | Loss on equity method investments | $(115,286) | $(83,341) | | Loss on disposal of fixed assets | $(54,839) | $- | | Other income (expenses) | $214,880 | $(4,253) | | Total other income (expenses) | $853,927 | $(281,949) | [16. Related Party Transactions](index=43&type=section&id=16.%20Related%20Party%20Transactions) DocGo engaged in related party transactions, including legal services from Ely D. Tendler Strategic & Legal Services PLLC (owned by the General Counsel) totaling $234,230 in Q1 2023, and subcontractor services from PrideStaff (owned by an operations manager and spouse) totaling $93,311 in Q1 2023 - DocGo paid **$234,230** for legal services to Ely D. Tendler Strategic & Legal Services PLLC, a firm owned by the Company's General Counsel, during the three months ended March 31, 2023[177](index=177&type=chunk) - Subcontractor payments to PrideStaff, a related party owned by an operations manager and spouse, amounted to **$93,311** for the three months ended March 31, 2023, a decrease from **$209,153** in the prior year[178](index=178&type=chunk) [17. Income Taxes](index=43&type=section&id=17.%20Income%20Taxes) DocGo recorded an income tax benefit of $2.1 million for the three months ended March 31, 2023, compared to an expense of $0.4 million in the prior year, reflecting a pre-tax loss in the current period and the inclusion of state income taxes from new jurisdictions Income Tax Benefit (Provision) and Effective Tax Rate | Metric | Three Months Ended March 31, 2023 ($) | Three Months Ended March 31, 2022 ($) | | :------------------------ | :-------------------------------- | :-------------------------------- | | Income tax benefit (provision) | $2,129,870 | $(440,179) | | Effective tax rate | 38.21% | 4.85% | [18. 401(K) Plan](index=43&type=section&id=18.%20401%28K%29%20Plan) DocGo established a 401(k) plan in January 2022 for eligible U.S. employees but did not make any employer contributions as of March 31, 2023 - DocGo established a 401(k) plan in January 2022 for eligible U.S. employees but made no employer contributions as of March 31, 2023[180](index=180&type=chunk) [19. Legal Proceedings](index=43&type=section&id=19.%20Legal%20Proceedings) DocGo recorded a $1.0 million liability as of March 31, 2023, for an agreed-upon settlement of class-based claims under California state law, stemming from wage and hour violations alleged in a consolidated lawsuit - DocGo recorded a **$1,000,000** liability as of March 31, 2023, for a preliminarily approved settlement of class-based claims related to wage and hour violations under California state law[182](index=182&type=chunk)[183](index=183&type=chunk) [20. Risk and Uncertainties](index=44&type=section&id=20.%20Risk%20and%20Uncertainties) The COVID-19 pandemic had mixed impacts on DocGo, initially decreasing transportation volumes but accelerating demand for mobile health services. While COVID-19 testing revenue has significantly declined, the company anticipates continued growth in mobile health and transportation services due to secular factors like an aging population and patient preference for at-home care - COVID-19 testing activity, a significant revenue driver in 2021 and early 2022, has slowed considerably and is expected to account for an insignificant proportion of total revenues in 2023 and beyond[186](index=186&type=chunk)[187](index=187&type=chunk) - DocGo's business plan assumes continued recovery of industry-wide transportation volumes and increased demand for Mobile Health services, driven by longer-term secular factors such as an aging population and patient desire for treatments outside traditional settings[187](index=187&type=chunk)[200](index=200&type=chunk) [21. Subsequent Events](index=44&type=section&id=21.%20Subsequent%20Events) In April 2023, DocGo acquired the remaining noncontrolling interest in FMC NA for $7.0 million, consisting of $3.0 million in equity and $4.0 million in cash, resulting in 100% ownership - In April 2023, DocGo purchased the remaining noncontrolling interest in FMC NA for **$7,000,000**, comprising **$3,000,000** in equity (**360,145 shares**) and **$4,000,000** in cash, achieving **100% ownership**[188](index=188&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Result of Operations](index=45&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Result%20of%20Operations) This section provides management's perspective on DocGo's financial condition and results of operations for the three months ended March 31, 2023, compared to 2022. It covers an overview of the business, the impact of COVID-19, factors affecting performance, detailed analysis of revenue and expenses by segment, liquidity, capital resources, and critical accounting policies [Cautionary Note Regarding Forward-Looking Statements](index=45&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This section advises readers that the report contains forward-looking statements subject to risks and uncertainties, with no obligation for future updates - The report contains forward-looking statements regarding DocGo's plans, strategies, and financial prospects, which are subject to substantial risks and uncertainties beyond management's control[190](index=190&type=chunk) - DocGo explicitly states it undertakes no obligation to publicly update or revise any forward-looking statements due to new information, future events, or otherwise[192](index=192&type=chunk) [Overview](index=45&type=section&id=Overview) This section provides a general introduction to DocGo's business as a healthcare transportation and mobile services company, outlining its operating segments and recent financial performance - DocGo, founded in 2015, is a healthcare transportation and mobile services company operating in the US and UK, leveraging proprietary technology for in-person medical treatment[193](index=193&type=chunk) - Beginning Q1 2023, DocGo reports in three operating segments: Transportation Services, Mobile Health Services, and a new Corporate segment for shared services, with prior-year figures adjusted for comparability[194](index=194&type=chunk)[195](index=195&type=chunk) - For the three months ended March 31, 2023, the Company recorded a net loss of **$3.9 million**, a decline from net income of **$9.4 million** in the prior-year period[196](index=196&type=chunk) [COVID-19 Impact](index=46&type=section&id=COVID-19%20Impact) This section discusses the mixed impact of COVID-19 on DocGo's business, noting the decline in testing revenue but the acceleration and diversification of mobile health services - COVID-19 initially caused a decline in non-emergency medical transport and event-related revenues but accelerated demand for mobile health services, which has since diversified beyond COVID-19 testing[197](index=197&type=chunk)[199](index=199&type=chunk) - COVID-19 testing revenue significantly declined in Q3 and Q4 2022 and Q1 2023, becoming an insignificant proportion of total revenues as the pandemic enters an endemic phase[199](index=199&type=chunk) - The pandemic accelerated the diversification and expansion of the Mobile Health segment, which is now DocGo's larger operating segment in terms of revenues and personnel[199](index=199&type=chunk) [Factors Affecting Our Results of Operations](index=48&type=section&id=Factors%20Affecting%20Our%20Results%20of%20Operations) This section identifies key internal and external factors influencing DocGo's financial performance, including market conditions, acquisitions, competition, and macroeconomic trends - DocGo's operating results are influenced by its ability to obtain operating licenses, the success of its acquisition strategy, conditions in healthcare transportation and mobile health markets, and the competitive environment[203](index=203&type=chunk)[204](index=204&type=chunk)[205](index=205&type=chunk)[208](index=208&type=chunk) - Overall macroeconomic conditions, including rising interest rates, inflation, potential recession, and financial institution instability, significantly impact DocGo's financial performance, particularly by compressing gross profit margins due to increased labor, fuel, and medical supply costs[209](index=209&type=chunk)[214](index=214&type=chunk) - Future revenue growth depends on penetrating new and existing markets, controlling expenses (especially labor and vehicle costs), and continuous investment in R&D for innovative software services and mobile applications[203](index=203&type=chunk)[213](index=213&type=chunk)[215](index=215&type=chunk) [Components of Results of Operations](index=50&type=section&id=Components%20of%20Results%20of%20Operations) This section describes the primary components of DocGo's financial results, detailing revenue and cost structures across its Transportation Services, Mobile Health Services, and Corporate segments - DocGo's business is divided into three reportable segments: Transportation Services, Mobile Health Services, and Corporate, with all revenue and cost of goods sold contained within the first two segments[217](index=217&type=chunk) - Cost of revenues primarily includes revenue-generating wages, vehicle insurance, maintenance, fuel, laboratory fees, facility rent, medical supplies, and subcontractors, expected to rise with revenue[219](index=219&type=chunk) - Operating expenses, such as general and administrative, depreciation and amortization, legal and regulatory, technology and development, and sales, advertising, and marketing, are expected to increase to support business growth and public company operations[220](index=220&type=chunk)[221](index=221&type=chunk)[223](index=223&type=chunk)[224](index=224&type=chunk)[225](index=225&type=chunk) [Results of Operations (Comparison of the Three Months Ended March 31, 2023 and March 31, 2022)](index=52&type=section&id=Results%20of%20Operations%20%28Comparison%20of%20the%20Three%20Months%20Ended%20March%2031%2C%202023%20and%20March%2031%2C%202022%29) This section provides a detailed comparative analysis of DocGo's financial performance, including revenue, cost of revenue, and operating expenses, for Q1 2023 versus Q1 2022 [Consolidated Revenue](index=54&type=section&id=Consolidated%20Revenue) This section analyzes DocGo's total revenue performance, highlighting a slight decrease for the three months ended March 31, 2023, compared to the prior year | Metric | Three Months Ended March 31, 2023 ($) | Three Months Ended March 31, 2022 ($) | Change ($) | Change (%) | | :------- | :-------------------------------- | :-------------------------------- | :--------- | :--------- | | Revenue, net | $113.0 million | $117.9 million | $(4.9) million | (4%) | [Mobile Health Revenue](index=54&type=section&id=Mobile%20Health%20Revenue) This section details the decline in Mobile Health revenue, primarily due to reduced COVID-19 testing services, partially offset by growth in other mobile health offerings | Metric | Three Months Ended March 31, 2023 ($) | Three Months Ended March 31, 2022 ($) | Change ($) | Change (%) | | :-------------------------------- | :-------------------------------- | :-------------------------------- | :--------- | :--------- | | Mobile Health revenue | $72.9 million | $90.1 million | $(17.2) million | (19.1%) | | Estimated COVID-19 testing revenue | $1.0 million | $38.0 million | $(37.0) million | (97.4%) | [Transportation Services Revenue](index=54&type=section&id=Transportation%20Services%20Revenue) This section highlights the significant growth in Transportation Services revenue, driven by increased trip volumes, higher average trip prices, and strategic acquisitions | Metric | Three Months Ended March 31, 2023 ($) | Three Months Ended March 31, 2022 ($) | Change ($) | Change (%) | | :-------------------- | :-------------------------------- | :-------------------------------- | :--------- | :--------- | | Transportation Services revenue | $40.1 million | $27.8 million | $12.3 million | 44% |\ | Trip volumes | 58,176 | 48,110 | 10,066 | 21% | | Average trip price | $415 | $353 | $62 | 17.6% | - The increase in average trip price was also supported by an **8.7%** increase in the average Medicare reimbursement rate for ambulance transports[231](index=231&type=chunk) [Cost of Revenue](index=54&type=section&id=Cost%20of%20Revenue) This section examines the increase in DocGo's total cost of revenue and its percentage of revenue, attributing it to higher compensation and vehicle costs, despite reduced COVID-related expenses | Metric | Three Months Ended March 31, 2023 ($) | Three Months Ended March 31, 2022 ($) | Change ($) | Change (%) | | :-------------------- | :-------------------------------- | :-------------------------------- | :--------- | :--------- | | Total cost of revenue | $81.2 million | $78.0 million | $3.2 million | 4.1% | | Cost of revenue as % of revenue | 71.9% | 66.2% | 5.7 pp | | - Key drivers for the increase in cost of revenue included a **$15.7 million** increase in total compensation and a **$0.6 million** increase in vehicle costs, partially offset by a **$1.9 million** decline in subcontracted labor, an **$8.2 million** decrease in medical supplies, and a **$3.4 million** decline in lab fees[233](index=233&type=chunk) - For Mobile Health, cost of revenues as a percentage of revenues increased to **72.3%** in Q1 2023 from **62.7%** in Q1 2022, due to declining COVID-testing revenues and higher compensation expenses[234](index=234&type=chunk) - For Transportation Services, cost of revenues as a percentage of revenues declined to **71.1%** in Q1 2023 from **77.3%** in Q1 2022, reflecting higher per-trip prices, increased standby contracts, and lower average fuel prices[235](index=235&type=chunk) [Operating Expenses](index=55&type=section&id=Operating%20Expenses) This section details the substantial increase in DocGo's operating expenses, driven by higher compensation, depreciation, legal fees, and IT infrastructure investments | Metric | Three Months Ended March 31, 2023 ($) | Three Months Ended March 31, 2022 ($) | Change ($) | Change (%) | | :-------------------- | :-------------------------------- | :-------------------------------- | :--------- | :--------- | | Total operating expenses | $38.7 million | $29.8 million | $8.9 million | 30% | | Operating expenses as % of revenue | 34.3% | 25.3% | 9.0 pp | | - Key increases included **$6.9 million** in total compensation (driven by stock compensation), **$1.4 million** in depreciation and amortization, **$2.3 million** in legal and regulatory fees, **$1.2 million** in insurance costs, and **$1.0 million** in IT infrastructure[236](index=236&type=chunk) - These increases were partially offset by a **$3.0 million** decline in bad debt expense, a **$0.5 million** decline in commissions, and a **$0.5 million** decline in marketing costs[236](index=236&type=chunk) - Corporate segment operating expenses significantly increased from **$10.8 million** in Q1 2022 to **$21.12 million** in Q1 2023, primarily due to higher headcount and stock compensation for corporate infrastructure[239](index=239&type=chunk) [Interest Income/(Expense), Net](index=55&type=section&id=Interest%20Income%2F%28Expense%29%2C%20Net) This section reports a shift to net interest income, reflecting higher cash balances and increased market interest rates for the three months ended March 31, 2023 | Metric | Three Months Ended March 31, 2023 ($) | Three Months Ended March 31, 2022 ($) | | :------------------------ | :-------------------------------- | :-------------------------------- | | Interest income (expense), net | $809,172 | $(135,606) | [Gain/(loss) on Remeasurement of Warrant Liabilities](index=55&type=section&id=Gain%2F%28loss%29%20on%20Remeasurement%20of%20Warrant%20Liabilities) This section notes the absence of warrant liability remeasurement gain or loss in Q1 2023, following the redemption of warrants in the prior year | Metric | Three Months Ended March 31, 2023 ($) | Three Months Ended March 31, 2022 ($) | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Loss on remeasurement of warrant liabilities | $- | $(58,749) | [Gain/(Loss) on Equity Method Investment](index=55&type=section&id=Gain%2F%28Loss%29%20on%20Equity%20Method%20Investment) This section reports an increased loss from equity method investments, reflecting DocGo's share of losses from a minority-interest entity | Metric | Three Months Ended March 31, 2023 ($) | Three Months Ended March 31, 2022 ($) | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Loss on equity method investments | $(115,286) | $(83,341) | [Gain/(loss) on Disposal of Fixed Assets](index=56&type=section&id=Gain%2F%28loss%29%20on%20Disposal%20of%20Fixed%20Assets) This section reports a loss on the disposal of fixed assets for the three months ended March 31, 2023, with no comparable event in the prior year | Metric | Three Months Ended March 31, 2023 ($) | Three Months Ended March 31, 2022 ($) | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Loss on disposal of fixed assets | $(54,839) | $- | [Income Tax Benefit/(Expense)](index=57&type=section&id=Income%20Tax%20Benefit%2F%28Expense%29) This section details a shift to an income tax benefit, reflecting a pre-tax loss in Q1 2023 and the inclusion of state income taxes from new jurisdictions | Metric | Three Months Ended March 31, 2023 ($) | Three Months Ended March 31, 2022 ($) | | :------------------------ | :-------------------------------- | :-------------------------------- | | Income tax benefit (provision) | $2.1 million | $(0.4) million | [Net Loss Attributable to Noncontrolling Interest](index=57&type=section&id=Net%20Loss%20Attributable%20to%20Noncontrolling%20Interest) This section reports a decrease in net loss attributable to noncontrolling interests, indicating improved performance in DocGo's joint venture investments | Metric | Three Months Ended March 31, 2023 ($) | Three Months Ended March 31, 2022 ($) | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net loss attributable to noncontrolling interests | $(0.5) million | $(1.3) million | [Liquidity and Capital Resources](index=57&type=section&id=Liquidity%20and%20Capital%20Resources) DocGo's liquidity is primarily supported by existing cash, expected operating cash flows, and a $90 million revolving credit line (undrawn as of March 31, 2023). The company anticipates these resources will be sufficient for at least the next twelve months, despite a decrease in working capital and cash balances due to acquisitions and operational timing - DocGo's primary sources of liquidity include equity financing, operating cash flows, and a **$90 million** revolving loan and security agreement, which was undrawn as of March 31, 2023[246](index=246&type=chunk)[247](index=247&type=chunk) - The company anticipates that existing cash, future operating cash flows, and the available line of credit will be sufficient to meet operating requirements for at least the next **twelve months**[249](index=249&type=chunk) - Future capital requirements are dependent on potential acquisitions, technology investments, and growth rates, and may be affected by external factors like interest rates and inflation[246](index=246&type=chunk) [Capital Resources](index=58&type=section&id=Capital%20Resources) This section details DocGo's working capital and available cash, noting a decrease primarily due to reduced cash balances and increased current liabilities | Metric | As of March 31, 2023 ($) | As of March 31, 2022 ($) | Change ($) | Change (%) | | :---------------- | :------------------- | :------------------- | :--------- | :--------- | | Current assets | $258.4 million | $268.2 million | $(9.8) million | (4%) | | Current liabilities | $109.0 million | $61.0 million | $48.0 million | 79% | | Total working capital | $149.4 million | $207.2 million | $(57.8) million | (28%) | | Available cash | $120.1 million | $188.4 million | $(68.3) million | (36.3%) | - Working capital decreased by **$57.8 million** to **$149.4 million** as of March 31, 2023, primarily due to reduced cash balances and increased current liabilities from business growth and acquisition-related payables[250](index=250&type=chunk) [Cash Flows](index=58&type=section&id=Cash%20Flows) This section analyzes DocGo's cash flow activities, highlighting cash used in operating, investing, and financing activities for the three months ended March 31, 2023 | Cash Flow Activity | Three Months Ended March 31, 2023 ($) | Three Months Ended March 31, 2022 ($) | Change ($) | Change (%) | | :----------------- | :-------------------------------- | :-------------------------------- | :--------- | :--------- | | Operating Activities | $(23.1) million | $18.3 million | $(41.4) million | (226%) | | Investing Activities | $(1.7) million | $(1.1) million | $(0.6) million | (55%) | | Financing Activities | $(12.0) million | $2.5 million | $(14.5) million | (580%) | | Net (decrease) increase in cash | $(36.6) million | $19.7 million | $(56.3) million | (286%) | - Operating activities used **$23.1 million** of cash in Q1 2023, primarily due to a net loss of **$3.9 million** and a **$24.7 million** increase in accounts receivable, partially offset by non-cash charges[252](index=252&type=chunk) - Investing activities used **$1.7 million** in Q1 2023, mainly for property and equipment acquisitions (**$2.0 million**) and intangibles (**$1.4 million**), partially offset by cash from an acquisition (**$1.6 million**)[254](index=254&type=chunk) - Financing activities used **$12.0 million** in Q1 2023, driven by **$11.5 million** in deferred payments for acquisitions and **$0.8 million** in finance lease payments, partially offset by **$0.4 million** from stock option exercises[256](index=256&type=chunk) [Critical Accounting Policies](index=61&type=section&id=Critical%20Accounting%20Policies) This section outlines DocGo's key accounting policies, including consolidation, business combinations, goodwill impairment, and revenue recognition, which involve significant management judgments and estimates - DocGo's financial statements are prepared under U.S. GAAP, consolidating wholly-owned subsidiaries and Variable Interest Entities (VIEs) like MD1 Medical Care P.C., where the company has power and benefits[261](index=261&type=chunk)[264](index=264&type=chunk) - Business combinations are accounted for using the acquisition method, recording acquired assets and liabilities at fair value, with goodwill representing the excess purchase price over identifiable net assets[266](index=266&type=chunk)[267](index=267&type=chunk) - Goodwill is not amortized but tested for impairment annually or more frequently if indicators suggest impairment, such as the **$5.1 million** impairment related to Ambulnz Health, LLC's liquidation in 2022[270](index=270&type=chunk)[272](index=272&type=chunk) - Revenue recognition follows ASC 606, identifying performance obligations and recognizing revenue as benefits are consumed by the customer, typically based on fixed or usage-based fees, net of estimated contractual allowances[273](index=273&type=chunk)[274](index=274&type=chunk)[275](index=275&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=64&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) DocGo's primary market risks include interest rate risk (minimal impact due to fixed-rate notes payable and undrawn credit line), foreign exchange risk (limited due to majority USD transactions), and concentration of credit risk from cash deposits and major customers - DocGo's principal market risk is interest rate volatility on cash equivalents, but cash flows are not expected to be significantly affected due to fixed interest rates on notes payable and an undrawn revolving credit facility[278](index=278&type=chunk) - Foreign exchange risk is limited as the majority of transactions are in U.S. dollars, with a foreign exchange gain of **$243,658** in Q1 2023, and no hedging strategies are currently utilized[279](index=279&type=chunk) - The company faces concentration of credit risk, with one customer accounting for approximately **46% of sales** and **62% of net accounts receivable** for the three months ended March 31, 2023[280](index=280&type=chunk)[281](index=281&type=chunk) [Item 4. Controls and Procedures](index=64&type=section&id=Item%204.%20Controls%20and%20Procedures) DocGo's management, including its principal executive and financial officers, concluded that the company's disclosure controls and procedures were effective as of March 31, 2023. There were no material changes in internal control over financial reporting during the quarter - DocGo's disclosure controls and procedures were deemed effective as of March 31, 2023, ensuring timely and accurate reporting of information[282](index=282&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter ended March 31, 2023[283](index=283&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=66&type=section&id=Item%201.%20Legal%20Proceedings) DocGo is subject to legal proceedings and claims in the ordinary course of business, with details provided in Note 19 of the financial statements. The company also receives information requests from government agencies and takes appropriate action - DocGo is involved in legal actions and claims arising in the ordinary course of business, with specific details referenced in Note 19 of the unaudited Condensed Consolidated Financial Statements[285](index=285&type=chunk) - The company is also subject to requests for information and investigations from government agencies related to regulatory or investigational authority[286](index=286&type=chunk) [Item 1A. Risk Factors](index=66&type=section&id=Item%201A.%20Risk%20Factors) As of the filing date, there have been no material changes to the risk factors previously disclosed in DocGo's Annual Report on Form 10-K for the year ended December 31, 2022 - No material changes to the risk factors disclosed in the Annual Report on Form 10-K for the year ended December 31, 2022, have occurred as of the date of this Quarterly Report on Form 10-Q[287](index=287&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=66&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) DocGo issued $1.0 million worth of common stock in a private placement to four accredited investors as part of its acquisition of Cardiac RMS, LLC on March 31, 2023. The company also reported no share repurchases in Q1 2023 under its $40 million program, which had seen $3.7 million in repurchases in 2022 - On March 31, 2023, DocGo issued **$1,000,000** worth of common stock in a private placement to four accredited investors as part of the acquisition of **51% of Cardiac RMS, LLC**[288](index=288&type=chunk)[289](index=289&type=chunk) - No shares were repurchased during the first quarter of 2023 under the **$40 million** share repurchase program, which is set to expire on November 24, 2023[290](index=290&type=chunk) [Item 3. Defaults Upon Senior Securities](index=66&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) DocGo reported no defaults upon senior securities for the period - There were no defaults upon senior securities[291](index=291&type=chunk) [Item 4. Mine Safety Disclosures](index=66&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to DocGo Inc - This item is not applicable[292](index=292&type=chunk) [Item 5. Other Information](index=66&type=section&id=Item%205.%20Other%20Information) DocGo reported no other information for the period - There is no other information to report[293](index=293&type=chunk) [Item 6. Exhibits](index=68&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Quarterly Report on Form 10-Q, including organizational documents, officer certifications, and XBRL-related documents - The exhibits include the Second Amended and Restated Certificate of Incorporation, Amended and Restated Bylaws, an Offer Letter, and certifications from the Principal Executive Officer and Principal Financial Officer[295](index=295&type=chunk) - XBRL Instance Document and Taxonomy Extension documents (Schema, Calculation, Definition, Label, Presentation) are also filed as exhibits[295](index=295&type=chunk) [Signatures](index=69&type=section&id=Signatures) The report is duly signed on May 9, 2023, by Anthony Capone, Chief Executive Officer, and Norman Rosenberg, Chief Financial Officer, on behalf of DocGo Inc - The report was signed on May 9, 2023, by Anthony Capone, Chief Executive Officer, and Norman Rosenberg, Chief Financial Officer, confirming due authorization[298](index=298&type=chunk)[300](index=300&type=chunk)

Financial Data and Key Metrics Changes - In 2022, the company generated revenues of $440.5 million, up from $318.7 million in 2021, representing a growth rate of 38% [35] - Adjusted EBITDA for 2022 amounted to $41.3 million, up more than 60% from $25.1 million in 2021 [56] - Net income for 2022 was $30.7 million, up nearly 60% from $19.2 million in 2021 [56] - The company expects 2023 revenue guidance in the range of $500 million to $510 million, representing year-over-year growth of about 14% to 16% [62] Business Line Data and Key Metrics Changes - Mobile health revenue amounted to $325.8 million in 2022, up 39% from $234.4 million in 2021 [54] - Medical transportation revenue was $114.7 million in 2022, up 36% from 2021, driven by higher trip counts and average price per trip [83] - The gross margin for mobile health improved to 38.9% in 2022 compared to 38.1% in 2021, while transportation gross margins were 24.5%, virtually unchanged from 24.7% in 2021 [84] Market Data and Key Metrics Changes - The company has 34 active RFP submissions pending award totaling over $1 billion in aggregate contract value [48] - The current backlog stands at $180 million over three years, expected to be fully rolled out by the end of Q3 2023 [36] Company Strategy and Development Direction - The company is transitioning its medical transportation business to a leased hour model, which provides downside margin protection and greater visibility to revenues [12][41] - The focus is on maximizing profitability and reducing costs, with initiatives like rapid normalization to cut startup costs [50][79] - The company plans to exit lower profitability markets while repositioning assets to service more lucrative contracts [80] Management's Comments on Operating Environment and Future Outlook - Management has prepared for the expiration of the Federal public health emergency on May 11, 2023, and this is fully considered in the 2023 guidance [52] - The company anticipates continued strong demand from customers in both mobile health and transportation services [62] - Management expressed confidence in achieving a gross margin of approximately 37% by the end of 2023 [46] Other Important Information - The company plans to continue its stock buyback program, with approximately $36 million remaining in the approved program [61] - The company has been successful in securing a $94 million medical transportation contract, which is a 100% leased hour contract [37] Q&A Session Summary Question: Confirmation on leased hour contracts in transportation business KPIs - Management acknowledged the suggestion and indicated they would consider how to report those KPIs moving forward [8][9] Question: Impact of public health emergency roll-off on business - Management explained that they have planned for this and structured contracts to mitigate impacts, as they do not operate on a fee-for-service basis [15][13] Question: Startup expenses composition and reduction timeline - Management detailed that labor costs, particularly from staffing agencies and overtime, are significant contributors to startup expenses, and they expect to reduce these costs over time [94][19] Question: Transition to leased hour model and customer retention - Management indicated that customer retention during the transition is expected to be strong, as hospitals are well-informed about the changes [99][73] Question: Revenue recognition from the $180 million backlog - Management clarified that the revenue from the backlog will be recognized in a linear fashion, with full run rate expected by Q4 2023 [108][105]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 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 001-39618 DocGo Inc. (Exact name of Registrant as specified in its Charter) | Delaware | 85-2515483 | | --- | --- | | (State or other jur ...

Financial Data and Key Metrics Changes - Total revenue for Q3 2022 increased by 22% year-over-year to $104.3 million, up from $85.8 million in Q3 2021 [5][27] - Adjusted EBITDA for Q3 2022 was $8.4 million, representing 8% of revenue, compared to $4 million or 4.7% of revenue in the prior year [38] - Net income improved to $2.5 million in Q3 2022 from $800,000 in Q3 2021, with a significant increase in gross margin percentage to 31.7% from 30.1% [30][31] Business Line Data and Key Metrics Changes - Mobile health revenue for Q3 2022 was $76.6 million, up from $67.9 million in Q3 2021, representing a 13% increase [28] - Medical transportation revenue rose to $27.7 million in Q3 2022 from $17.9 million in Q3 2021, marking an increase of approximately 55% [28] - Mobile health revenue accounted for 73% of total revenue in Q3 2022, down from 79% in the prior year [29] Market Data and Key Metrics Changes - Revenue generated by the UK market grew by 15% to $3 million during Q3 2022, representing approximately 3% of total revenue [29] - The company transitioned from mass COVID testing, which accounted for mid-single digits of total revenue in Q3 2022, down from approximately 35% in Q3 2021 [6][28] Company Strategy and Development Direction - The company is focusing on population health programs, which are gaining traction with increased budgets from municipal, state, and federal programs [6] - DocGo is expanding its mobile health and medical transport businesses while developing new markets to support scalable growth [8][12] - The company plans to leverage its technology investments and strategic acquisitions to enhance service offerings and capture a larger market share [17][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong demand for mobile health and transportation services, leading to an increase in revenue guidance for 2022 to a range of $430 million to $440 million [5][41] - The company anticipates that the initial launch expenses for new projects will normalize after 90 to 120 days, leading to long-term profitability [14][88] - Management highlighted the importance of maintaining high employee satisfaction and retention rates to ensure quality service delivery [80][81] Other Important Information - The CEO announced plans to retire effective December 31, 2022, with the current president, Anthony Capone, set to assume the CEO role [43][44] - The company has successfully integrated its mobile health services with existing transportation contracts, enhancing its service offerings [56] Q&A Session Summary Question: Can you provide details on the Westpac relationship and its impact on RPM strategy? - The relationship focuses on urgent care services to prevent hospital admissions, with a pricing structure based on hourly rates and potential bonus payments for successful patient outcomes [46][48] Question: How does the Epic integration enhance mobile health services? - The integration allows for easier ordering of mobile health services alongside transportation, making it a significant differentiator in contracts with health systems [53][56] Question: What is the strategy for pacing new contract ads and potential bottlenecks? - The company has demonstrated proficiency in scaling large projects quickly, allowing for rapid contract growth without significant bottlenecks [60][62] Question: How does DocGo's business model insulate it from labor headwinds? - The company operates a lease labor model, which allows for flexibility in staffing and pricing adjustments based on inflationary pressures, unlike traditional fee-for-service models [70][75] Question: What is the company's approach to employee retention? - The company offers competitive wages, bonuses based on customer satisfaction, and equity participation, contributing to high employee retention rates [80][81]

[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) This section provides DocGo Inc.'s unaudited condensed consolidated financial information and management's analysis for the reported periods [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents DocGo Inc.'s unaudited condensed consolidated financial statements, including balance sheets, statements of operations and comprehensive income, statements of changes in stockholders' equity, and statements of cash flows, along with detailed notes explaining significant accounting policies, business operations, and financial details for the periods ended September 30, 2022, and December 31, 2021 [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's assets, liabilities, and equity at specific points in time Total Assets: | Metric | Sep 30, 2022 (Unaudited) | Dec 31, 2021 (Audited) | | :----- | :----------------------- | :--------------------- | | Total Assets | $355,920,210 | $309,602,652 | Total Liabilities: | Metric | Sep 30, 2022 (Unaudited) | Dec 31, 2021 (Audited) | | :----- | :----------------------- | :--------------------- | | Total Liabilities | $85,087,351 | $82,545,628 | Total Stockholders' Equity: | Metric | Sep 30, 2022 (Unaudited) | Dec 31, 2021 (Audited) | | :----- | :----------------------- | :--------------------- | | Total Stockholders' Equity | $270,832,859 | $227,057,024 | [Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) This statement details the company's revenues, expenses, and net income over specific reporting periods Revenue, Net: | Period | Sep 30, 2022 | Sep 30, 2021 | Change (YoY) | | :----- | :----------- | :----------- | :----------- | | Three Months | $104,319,894 | $85,838,988 | +21.5% | | Nine Months | $331,730,750 | $197,394,379 | +68.0% | Net Income (Loss): | Period | Sep 30, 2022 | Sep 30, 2021 | Change (YoY) | | :----- | :----------- | :----------- | :----------- | | Three Months | $2,466,486 | $801,566 | +207.7% | | Nine Months | $23,594,786 | $(1,095,427) | N/A (swing to profit) | Basic EPS: | Period | Sep 30, 2022 | Sep 30, 2021 | | :----- | :----------- | :----------- | | Three Months | $0.03 | $0.06 | | Nine Months | $0.26 | $0.00 | Diluted EPS: | Period | Sep 30, 2022 | Sep 30, 2021 | | :----- | :----------- | :----------- | | Three Months | $0.03 | $0.04 | | Nine Months | $0.24 | $0.00 | [Unaudited Condensed Consolidated Statements of Changes in Stockholders' Equity](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) This statement outlines the changes in the company's equity accounts over a specified period Total Stockholders' Equity: | Date | Amount | | :--- | :----- | | Sep 30, 2022 | $270,832,859 | | Dec 31, 2021 | $227,057,024 | | Sep 30, 2021 | $67,063,620 | Additional Paid-in Capital: | Date | Amount | | :--- | :----- | | Sep 30, 2022 | $301,522,213 | | Dec 31, 2021 | $283,161,216 | | Sep 30, 2021 | $143,289,262 | Accumulated Deficit: | Date | Amount | | :--- | :----- | | Sep 30, 2022 | $(37,036,937) | | Dec 31, 2021 | $(63,556,714) | | Sep 30, 2021 | $(87,117,532) | [Unaudited Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This statement summarizes the cash inflows and outflows from operating, investing, and financing activities Net Cash Provided by Operating Activities: | Period | Sep 30, 2022 | Sep 30, 2021 | Change (YoY) | | :----- | :----------- | :----------- | :----------- | | Nine Months | $37,607,545 | $6,853,001 | +448.8% | Net Cash Used in Investing Activities: | Period | Sep 30, 2022 | Sep 30, 2021 | Change (YoY) | | :----- | :----------- | :----------- | :----------- | | Nine Months | $(37,793,968) | $(4,447,371) | +750.0% | Net Cash Provided by Financing Activities: | Period | Sep 30, 2022 | Sep 30, 2021 | Change (YoY) | | :----- | :----------- | :----------- | :----------- | | Nine Months | $685,871 | $6,127,746 | -88.8% | Cash and Restricted Cash at End of Period: | Date | Amount | | :--- | :----- | | Sep 30, 2022 | $179,352,324 | | Sep 30, 2021 | $43,162,495 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the unaudited condensed consolidated financial statements [1. Description of Organization and Business Operations](index=10&type=section&id=1.%20Description%20of%20Organization%20and%20Business%20Operations) This note outlines the company's formation, business combination, and primary service offerings - DocGo Inc. consummated a business combination with Ambulnz, Inc. on November 5, 2021, accounted for as a reverse recapitalization[32](index=32&type=chunk)[33](index=33&type=chunk) - DocGo raised **$158.0 million** of net proceeds from the business combination, comprising **$43.4 million** from Motion's trust account and **$114.6 million** from PIPE Financing[34](index=34&type=chunk) - The Company provides healthcare transportation and mobile health services in major metropolitan cities in the U.S. and U.K., performing in-person care at various non-traditional locations[35](index=35&type=chunk) [2. Summary of Significant Accounting Policies](index=10&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) This note details the accounting principles and methods used in preparing the financial statements - The Unaudited Condensed Consolidated Financial Statements are prepared in accordance with U.S. GAAP and SEC interim reporting rules, to be read in conjunction with the 2021 Form 10-K[37](index=37&type=chunk) - The Company consolidates MD1 Medical Care P.C. as a Variable Interest Entity (VIE) due to its controlling financial interest, having the power and rights to control all activities and absorbing all losses[43](index=43&type=chunk)[44](index=44&type=chunk) - For the nine months ended September 30, 2022, one customer accounted for approximately **33% of sales** and **35% of net accounts receivable**, and another customer accounted for **11% of sales** and **0.1% of net accounts receivable**[52](index=52&type=chunk) - DocGo is an 'emerging growth company' and has elected not to opt out of the extended transition period for new or revised financial accounting standards, which may affect comparability with other public companies[56](index=56&type=chunk)[57](index=57&type=chunk) - Revenue is generated from Transportation Services and Mobile Health services, recognized when performance obligations are satisfied, typically immediately or over time for fixed-fee Mobile Health services[94](index=94&type=chunk)[101](index=101&type=chunk) Revenue Breakdown (Nine Months Ended Sep 30, 2022 vs. 2021): | Category | Sep 30, 2022 | Sep 30, 2021 | Change (YoY) | | :----------------------- | :----------- | :----------- | :----------- | | **Primary Geographical Markets:** | | | | | United States | $322,706,143 | $190,595,217 | +69.3% | | United Kingdom | $9,024,607 | $6,799,162 | +32.7% | | **Major Segments/Service Lines:** | | | | | Transportation Services | $77,657,852 | $65,657,141 | +18.3% | | Mobile Health | $254,072,898 | $131,737,238 | +92.9% | - The Company holds **50% interests** in RND Health Services Inc. (acquired Oct 2021 for **$655,876**) and National Providers Association, LLC (acquired Nov 2021 for **$30,000**, now **50% owned**), accounted for using the equity method[107](index=107&type=chunk)[110](index=110&type=chunk) [3. Property and Equipment, net](index=21&type=section&id=3.%20Property%20and%20Equipment,%20net) This note details the company's property and equipment assets and related depreciation expenses Property and Equipment, Net: | Date | Amount | | :--- | :----- | | Sep 30, 2022 | $17,577,830 | | Dec 31, 2021 | $12,733,889 | Depreciation Expense (Nine Months Ended Sep 30): | Year | Amount | | :--- | :----- | | 2022 | $2,592,244 | | 2021 | $1,697,380 | [4. Acquisition of Businesses](index=21&type=section&id=4.%20Acquisition%20of%20Businesses) This note provides details on the businesses acquired by the company during the reporting period - On July 6, 2022, Holdings acquired **100%** of Government Medical Services, LLC (GMS) for **$20.3 million** in cash, plus **$3.0 million** upon meeting certain performance conditions[119](index=119&type=chunk) - On July 13, 2022, the Company acquired **100%** of Exceptional Medical Transportation, LLC (Exceptional) for **$13.7 million**, consisting of **$7.7 million cash** at closing and **$6 million** payable over 24 months[121](index=121&type=chunk) - On August 9, 2022, the Company acquired **100%** of Ryan Brothers Fort Atkinson, LLC (RT) for **$11.4 million**, including **$7.4 million cash** at closing and **$4.0 million** of estimated contingent consideration over 24 months[126](index=126&type=chunk) Total Consideration for Q3 2022 Acquisitions: | Acquisition | Cash Consideration | Due to Seller | Contingent Consideration | Amounts held under escrow | Total Consideration | | :---------- | :----------------- | :------------ | :----------------------- | :------------------------ | :------------------ | | Ryan Brothers | $7,422,252 | - | $4,000,000 | - | $11,422,252 | | Exceptional | $6,375,000 | $6,000,000 | - | $1,333,333 | $13,708,333 | | GMS | $20,338,789 | - | - | - | $20,338,789 | | **Total** | **$34,136,041** | **$6,000,000** | **$4,000,000** | **$1,333,333** | **$45,469,374** | [5. Goodwill](index=24&type=section&id=5.%20Goodwill) This note provides information on the company's goodwill balance and changes during the period Goodwill Carrying Value: | Date | Amount | | :--- | :----- | | Sep 30, 2022 | $34,533,363 | | Dec 31, 2021 | $8,686,966 | - Goodwill acquired during the period amounted to **$25,846,397**[131](index=131&type=chunk) [6. Intangibles](index=24&type=section&id=6.%20Intangibles) This note details the company's intangible assets and their associated amortization expenses Net Intangibles: | Date | Amount | | :--- | :----- | | Sep 30, 2022 | $20,647,790 | | Dec 31, 2021 | $10,678,049 | Amortization Expense (Nine Months Ended Sep 30): | Year | Amount | | :--- | :----- | | 2022 | $2,269,423 | | 2021 | $1,432,983 | Future Amortization Expense (as of Sep 30, 2022): | Year | Amortization Expense | | :--- | :------------------- | | 2022 (remaining) | $680,930 | | 2023 | $2,078,406 | | 2024 | $1,510,563 | | 2025 | $1,460,965 | | 2026 | $1,094,588 | | Thereafter | $4,934,074 | | **Total** | **$11,759,526** | [7. Accrued Liabilities](index=25&type=section&id=7.%20Accrued%20Liabilities) This note provides a breakdown of the company's accrued liabilities and their changes Total Accrued Liabilities: | Date | Amount | | :--- | :----- | | Sep 30, 2022 | $38,558,074 | | Dec 31, 2021 | $35,110,877 | - Key increases in accrued liabilities include payroll, general expenses, subcontractors, and workers' compensation, while accrued bonus and lab fees decreased[137](index=137&type=chunk) [8. Line of Credit](index=25&type=section&id=8.%20Line%20of%20Credit) This note details the company's revolving loan and bridge credit agreement - The Company has a revolving loan and bridge credit agreement with a maximum advance amount of **$12,000,000**[138](index=138&type=chunk) - The interest rate is the Wall Street Journal Prime Rate (**6.25%** at Sep 30, 2022) plus **1.00%**, with a minimum of **5.00%** per annum[138](index=138&type=chunk) - As of September 30, 2022, the outstanding balance on the line of credit was **$1,000,000**, drawn in January 2022 to fund operations[138](index=138&type=chunk) [9. Notes Payable](index=26&type=section&id=9.%20Notes%20Payable) This note outlines the company's notes payable, including their purpose, interest rates, and maturities Total Notes Payable: | Date | Amount | | :--- | :----- | | Sep 30, 2022 | $2,136,808 | | Dec 31, 2021 | $1,903,288 | - Notes payable are primarily for transportation equipment, with interest rates ranging from **2.5% to 8%** and maturities through 2051[141](index=141&type=chunk) Future Minimum Annual Maturities (as of Sep 30, 2022): | Year | Notes Payable | | :--- | :------------ | | 2022 (remaining) | $137,959 | | 2023 | $582,722 | | 2024 | $446,812 | | 2025 | $386,785 | | 2026 | $311,769 | | Thereafter | $270,761 | | **Total Maturities** | **$2,136,808** | [10. Business Segment Information](index=26&type=section&id=10.%20Business%20Segment%20Information) This note provides financial data for the company's operating segments: Transportation Services and Mobile Health - DocGo operates in two segments: Transportation Services and Mobile Health services, with performance evaluated by the chief operating decision maker based on revenue streams[144](index=144&type=chunk) Nine Months Ended Sep 30, 2022 Segment Performance: | Metric | Transportation Services | Mobile Health Services | Total | | :-------------------------- | :---------------------- | :--------------------- | :---------- | | Revenues | $77,657,852 | $254,072,898 | $331,730,750 | | Income (loss) from operations | $(33,035,470) | $54,786,982 | $21,751,512 | | Total assets | $173,789,449 | $182,130,761 | $355,920,210 | | Depreciation and amortization expense | $6,271,952 | $981,704 | $7,253,656 | | Stock compensation | $1,253,450 | $3,280,309 | $4,533,759 | | Long-lived assets | $19,584,744 | $53,174,239 | $72,758,983 | Three Months Ended Sep 30, 2022 Segment Performance: | Metric | Transportation Services | Mobile Health Services | Total | | :-------------------------- | :---------------------- | :--------------------- | :---------- | | Revenues | $27,670,109 | $76,649,785 | $104,319,894 | | Income (loss) from operations | $(4,213,156) | $8,412,346 | $4,199,190 | [11. Equity](index=28&type=section&id=11.%20Equity) This note describes changes in the company's equity, including stock conversions and repurchase programs - DocGo's Series A preferred stock was cancelled and converted into common stock during the November 2021 merger[152](index=152&type=chunk) - The Board authorized a share repurchase program on May 24, 2022, to purchase up to **$40 million** of common stock, expiring November 24, 2023[160](index=160&type=chunk) - During the second quarter of 2022, the Company repurchased **70,000 shares** of common stock for **$498,000**; no shares were repurchased in the third quarter of 2022[160](index=160&type=chunk) [12. Stock Based Compensation](index=29&type=section&id=12.%20Stock%20Based%20Compensation) This note details the company's stock-based compensation plans and related activity - The Company established the DocGo Inc. Equity Incentive Plan in 2021, reserving **16,607,894 shares** of common stock for issuance[163](index=163&type=chunk) Stock Option Activity (Nine Months Ended Sep 30, 2022): | Metric | Options Shares | Weighted Average Exercise Price | | :-------------------------- | :------------- | :------------------------------ | | Balance as of Dec 31, 2021 | 8,422,972 | $6.21 | | Granted/Vested during year | 2,183,026 | $5.92 | | Exercised during year | (1,637,159) | $2.04 | | Cancelled during year | (706,642) | $7.71 | | Balance as of Sep 30, 2022 | 8,262,197 | $7.04 | - Total unrecognized compensation related to unvested stock option awards was **$27,812,078**, expected to be recognized over a weighted-average period of approximately **3.73 years**[170](index=170&type=chunk) - As of September 30, 2022, the Company had **$1,241,163** in unrecognized compensation cost related to non-vested RSUs, expected to be recognized over approximately **3.1 years**[176](index=176&type=chunk) [13. Leases](index=32&type=section&id=13.%20Leases) This note provides information on the company's operating and finance leases, including costs and liabilities Total Lease Cost (Nine Months Ended Sep 30): | Year | Operating Lease Expense | Short-term Lease Expense | Total Lease Cost | | :--- | :---------------------- | :----------------------- | :--------------- | | 2022 | $1,517,541 | $863,316 | $2,380,857 | | 2021 | $1,446,067 | $256,448 | $1,702,515 | Operating Lease Liabilities (Sep 30, 2022): | Category | Amount | | :-------------------------- | :----------- | | Lease right-of-use assets | $8,185,547 | | Lease liability - current portion | $2,059,278 | | Lease liability, net of current portion | $6,406,246 | | Total lease liability | $8,465,524 | Finance Lease Liabilities (Sep 30, 2022): | Category | Amount | | :-------------------------- | :----------- | | Lease right-of-use assets | $9,421,196 | | Lease liability - current portion | $2,858,968 | | Lease liability, net of current portion | $6,086,521 | | Total lease liability | $8,945,489 | - A gain of **$1.4 million** was recorded in June 2022 from the remeasurement of finance leases, resulting from a decision to purchase vehicles at the end of their lease terms[191](index=191&type=chunk) [14. Other Expense](index=36&type=section&id=14.%20Other%20Expense) This note details other non-operating expenses, including warrant liability remeasurement - For the three months ended September 30, 2022, the Company recorded a loss of approximately **$1.8 million** from the remeasurement of warrant liabilities, reflecting an increase in DocGo's stock price[199](index=199&type=chunk) - All outstanding warrants were redeemed in September 2022[199](index=199&type=chunk) [15. Related Party Transactions](index=36&type=section&id=15.%20Related%20Party%20Transactions) This note discloses transactions with related parties, including legal and subcontractor services Legal Services Payments to Ely D. Tendler Strategic & Legal Services PLLC (owned by General Counsel): | Period | Amount | | :----- | :----------- | | Nine Months Ended Sep 30, 2022 | $704,593 | | Nine Months Ended Sep 30, 2021 | $476,293 | Subcontractor Payments to Pride Staff (owned by operations manager and spouse): | Period | Amount | | :----- | :----------- | | Nine Months Ended Sep 30, 2022 | $364,844 | | Nine Months Ended Sep 30, 2021 | $592,417 | [16. Income Taxes](index=37&type=section&id=16.%20Income%20Taxes) This note provides information on the company's income tax expense and its drivers Income Tax Expense (Nine Months Ended Sep 30): | Year | Amount | | :--- | :----------- | | 2022 | $1,163,755 | | 2021 | $613,531 | - The increase in income tax expense resulted from higher pretax income and state income taxes in new jurisdictions[206](index=206&type=chunk) [17. 401(K) Plan](index=37&type=section&id=17.%20401(K)%20Plan) This note describes the company's 401(k) plan for eligible U.S. employees - The Company established a 401(k) plan in January 2022 for eligible U.S. employees[207](index=207&type=chunk) - No employer contributions were made to the 401(k) plan as of September 30, 2022[207](index=207&type=chunk) [18. Legal Proceedings](index=37&type=section&id=18.%20Legal%20Proceedings) This note details the company's legal proceedings and related liabilities - As of September 30, 2022, the Company recorded a **$1,000,000 liability** for an agreed settlement of class-based wage and hour claims (Stephanie Zamora, Jascha Dlugatch, et al. v. Ambulnz Health, LLC, et al.)[209](index=209&type=chunk) - The proposed settlement received preliminary court approval on September 9, 2022[210](index=210&type=chunk) [19. Risk and Uncertainties](index=38&type=section&id=19.%20Risk%20and%20Uncertainties) This note discusses the impact of the COVID-19 pandemic and other risks on the company's operations - The COVID-19 pandemic had a mixed impact, initially causing a decline in non-emergency medical transportation but leading to incremental revenue from FEMA projects and significant growth in Mobile Health services, particularly COVID-19 testing[214](index=214&type=chunk)[215](index=215&type=chunk) - The pandemic accelerated the diversification and expansion of the Mobile Health segment, which has now become the Company's larger operating segment, driven by secular factors like patient desire for non-traditional care settings[215](index=215&type=chunk)[216](index=216&type=chunk) - Medicare accelerated payments of approximately **$2,397,024** received in April 2020 were fully repaid by September 30, 2022[219](index=219&type=chunk) [20. Subsequent Events](index=39&type=section&id=20.%20Subsequent%20Events) This note describes significant events that occurred after the reporting period - On October 12, 2022, the Company acquired Community Ambulance Service Ltd in the United Kingdom for approximately **£4.8 million** in cash to increase its presence and access municipal contracts[220](index=220&type=chunk) - On November 1, 2022, the Company entered into a new revolving loan and security agreement for a maximum of **$90,000,000**, with an option to increase by an additional **$50,000,000**, maturing on November 1, 2027[221](index=221&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Result of Operations](index=40&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Result%20of%20Operations) This section analyzes DocGo's financial condition and operating results, including business overview, COVID-19 impact, key factors, and liquidity for the reported periods [Overview](index=40&type=section&id=Overview) This section provides a general description of DocGo's business, its operating segments, and key financial highlights - DocGo, incorporated in 2015, is a healthcare transportation and mobile services company operating in major metropolitan cities in the U.S. and U.K.[225](index=225&type=chunk) - The Company derives revenue primarily from two operating segments: Transportation Services (emergency and non-emergency ambulance transport) and Mobile Health Services (at-home/office care, COVID-19 testing, event services)[226](index=226&type=chunk)[227](index=227&type=chunk) Net Income (Loss): | Period | Sep 30, 2022 | Sep 30, 2021 | | :----- | :----------- | :----------- | | Three Months | $2.5 million | $0.8 million | | Nine Months | $23.6 million | $(1.1) million | [COVID-19](index=41&type=section&id=COVID-19) This section discusses the mixed impact of the COVID-19 pandemic on the company's business operations and strategic direction - COVID-19 had a mixed impact, initially causing a decline in non-emergency medical transport volumes but leading to positive business impacts from FEMA projects and the expansion of Rapid Reliable Testing (RRT) for COVID-19 testing[230](index=230&type=chunk)[231](index=231&type=chunk) - RRT, part of the Mobile Health segment, has grown significantly and expanded beyond COVID-19 testing, accelerating the diversification of the Company's business, with Mobile Health now being the larger operating segment[233](index=233&type=chunk) - The Company's business plan assumes continued recovery of industry-wide transportation volumes and increased demand for mobile health services, driven by long-term secular factors[235](index=235&type=chunk) [Factors Affecting Our Results of Operations](index=42&type=section&id=Factors%20Affecting%20Our%20Results%20of%20Operations) This section analyzes key internal and external factors influencing the company's financial performance, including acquisitions, market conditions, and inflation - DocGo completed three acquisitions during the nine months ended September 30, 2022, for an aggregate payment of **$34.1 million** (excluding **$1.3 million** held in escrow), as part of its strategy to obtain operating licenses and expand market presence[238](index=238&type=chunk) - Trip volumes increased by approximately **29%** for the three months ended September 30, 2022, and **13%** for the nine months ended September 30, 2022, due to customer base growth, new market entry, and acquisitions[266](index=266&type=chunk)[287](index=287&type=chunk) - The average trip price increased from **$303 to $374** (Q3 YoY) and **$297 to $362** (9M YoY), reflecting a shift to higher-priced transports, acquisition of licenses for higher acuity transports, and a **5.1% increase** in Medicare reimbursement rates[266](index=266&type=chunk)[287](index=287&type=chunk) - The inflation rate reached approximately **9.1%** in June 2022 and **8.2%** in September 2022, impacting the Company's expenses (wages, fuel, medical supplies) and compressing gross profit margins as higher costs are difficult to pass on to customers[250](index=250&type=chunk) - The Company's performance is dependent on investments in research and development to continually develop and introduce innovative new software services, integrations, and mobile applications[251](index=251&type=chunk) [Components of Results of Operations](index=44&type=section&id=Components%20of%20Results%20of%20Operations) This section describes the primary revenue streams and expense categories that constitute the company's operating results - Revenue is generated from the Company's ambulance Transportation Services segment and its Mobile Health segment[255](index=255&type=chunk) - Cost of revenues primarily includes revenue-generating wages, vehicle insurance, maintenance, fuel, laboratory fees, facility rent, medical supplies, and subcontractors[256](index=256&type=chunk) - Operating expenses consist of general and administrative, depreciation and amortization, legal and regulatory, technology and development, and sales, advertising and marketing expenses[257](index=257&type=chunk)[258](index=258&type=chunk)[259](index=259&type=chunk)[260](index=260&type=chunk)[261](index=261&type=chunk) [Results of Operations](index=46&type=section&id=Results%20of%20Operations) This section provides a detailed analysis of the company's financial performance for the reported periods [Comparison of the three months ended September 30, 2022 and 2021](index=46&type=section&id=Comparison%20of%20the%20three%20months%20ended%20September%2030,%202022%20and%202021) This section compares the company's financial performance for the three-month periods ended September 30, 2022, and 2021 - Total revenues for the three months ended September 30, 2022, increased by **$18.5 million (22%)** to **$104.3 million** compared to the same period in 2021[265](index=265&type=chunk) - Transportation Services revenue increased by **$9.8 million (55%)** to **$27.7 million**, driven by a **29% increase** in trip volumes and a rise in average trip price from **$303 to $374**[266](index=266&type=chunk) - Mobile Health revenue increased by **$8.7 million (13%)** to **$76.6 million**, primarily due to the expansion of services, outweighing a decline in COVID-19 testing revenue[267](index=267&type=chunk) - Cost of revenue as a percentage of revenue decreased to **68.3%** in Q3 2022 from **69.9%** in Q3 2021, despite absolute dollar increases in compensation and vehicle costs, partially offset by decreases in lab fees and subcontracted labor[268](index=268&type=chunk)[269](index=269&type=chunk) - Operating expenses increased by **18%** to **$28.8 million** but declined as a percentage of revenue to **27.7%** (from **28.3%**) due to increased overall revenues and the semi-fixed nature of corporate infrastructure costs[273](index=273&type=chunk) - The Company recorded a **$1.8 million loss** from the remeasurement of warrant liabilities in Q3 2022, reflecting an increase in DocGo's stock price, with all outstanding warrants redeemed in September 2022[279](index=279&type=chunk) [Comparison of the nine months ended September 30, 2022 and 2021](index=50&type=section&id=Comparison%20of%20the%20nine%20months%20ended%20September%2030,%202022%20and%202021) This section compares the company's financial performance for the nine-month periods ended September 30, 2022, and 2021 - Total revenues for the nine months ended September 30, 2022, increased by **$134.3 million (68%)** to **$331.7 million** compared to the same period in 2021[285](index=285&type=chunk) - Transportation Services revenue increased by **$12.0 million (18%)** to **$77.6 million**, driven by a **13% increase** in trip volumes and a rise in average trip price from **$297 to $362**[287](index=287&type=chunk) - Mobile Health revenue increased by **$122.3 million (93%)** to **$254.1 million**, primarily due to the expansion of services, including COVID-19 testing and vaccination[288](index=288&type=chunk) - Cost of revenue as a percentage of revenue decreased to **66.1%** in the first nine months of 2022 from **69.4%** in the prior year, despite absolute dollar increases in compensation, subcontracted labor, and medical supplies, partially offset by lower lab fees[289](index=289&type=chunk)[290](index=290&type=chunk) - Operating expenses increased by **49.5%** to **$90.5 million** but decreased as a percentage of revenue to **27.3%** (from **30.6%**) due to the significant increase in overall revenues and the semi-fixed nature of corporate infrastructure costs[294](index=294&type=chunk) - The Company recorded a **$1.1 million gain** from the remeasurement of warrant liabilities in the nine months ended September 30, 2022, due to a decline in DocGo's stock price[300](index=300&type=chunk) - A gain of approximately **$1.4 million** was recorded from the remeasurement of finance leases in the nine months ended September 30, 2022[302](index=302&type=chunk) [Liquidity and Capital Resources](index=54&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's ability to generate and manage cash, including sources of funds and capital allocation strategies - DocGo's principal sources of liquidity include equity financing, with approximately **$158.1 million** net proceeds from the November 2021 merger, and operating cash flows[307](index=307&type=chunk) Working Capital: | Date | Amount | Change (YoY) | | :--- | :----- | :----------- | | Sep 30, 2022 | $180.9 million | +507% | | Sep 30, 2021 | $29.8 million | | Cash Flow Summary (Nine Months Ended Sep 30): | Activity | 2022 | 2021 | Change (YoY) | | :-------------------------------- | :----- | :----- | :----------- | | Operating Activities | $37.6 million | $6.9 million | +445% | | Investing Activities | $(37.8) million | $(4.4) million | +759% | | Financing Activities | $0.7 million | $6.0 million | -88% | - Subsequent to Q3 2022, on November 1, 2022, the Company entered into a new revolving loan and security agreement for a maximum of **$90 million**, with an option to increase by an additional **$50 million**[308](index=308&type=chunk) - As of September 30, 2022, **$39.5 million** remained available for share repurchases under the **$40 million** program approved on May 24, 2022; no shares were repurchased during Q3 2022[322](index=322&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=57&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, DocGo Inc. is exempt from providing detailed quantitative and qualitative disclosures about market risk - DocGo is a smaller reporting company and is not required to provide detailed quantitative and qualitative disclosures about market risk[324](index=324&type=chunk) [Item 4. Controls and Procedures](index=57&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that DocGo's disclosure controls and procedures were effective as of September 30, 2022, and reported no material changes in internal control over financial reporting during the quarter - Management concluded that the Company's disclosure controls and procedures were effective as of September 30, 2022[325](index=325&type=chunk) - There were no material changes in internal control over financial reporting during the quarter ended September 30, 2022[326](index=326&type=chunk) [PART II - OTHER INFORMATION](index=58&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) This part contains other required disclosures, including legal proceedings, risk factors, and details on equity securities [Item 1. Legal Proceedings](index=58&type=section&id=Item%201.%20Legal%20Proceedings) DocGo Inc. is involved in legal proceedings and claims in the ordinary course of business, with further details provided in Note 18 of the financial statements - The Company is subject to legal proceedings, claims, and litigation arising in the ordinary course of business, with details in Note 18 of the financial statements[329](index=329&type=chunk) - DocGo receives requests for information from government agencies in connection with their regulatory or investigational authority[330](index=330&type=chunk) [Item 1A. Risk Factors](index=58&type=section&id=Item%201A.%20Risk%20Factors) This section highlights new risk factors related to inflation and the share repurchase program, which could impact gross margins and stock price - No material changes to risk factors disclosed in the 2021 Form 10-K, other than the inflation rate risk and share repurchase risk[331](index=331&type=chunk) - The inflation rate reached **8.2%** in September 2022, and if it remains above anticipated levels, gross margins could be below plan, adversely affecting business, operating results, and cash flows[332](index=332&type=chunk) - The share repurchase program is discretionary, and any future decisions to reduce or discontinue repurchases could cause the market price for common stock to decline and negatively impact investor confidence[333](index=333&type=chunk)[334](index=334&type=chunk)[335](index=335&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=59&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Board approved a **$40 million** share repurchase program on May 24, 2022, expiring November 24, 2023, with **$39.5 million** remaining available as of September 30, 2022 - The Board approved a share repurchase program on May 24, 2022, to purchase up to **$40 million** of the Company's common stock, expiring November 24, 2023[337](index=337&type=chunk) - No shares were repurchased during the three months ended September 30, 2022[337](index=337&type=chunk) - As of September 30, 2022, **$39.5 million** remained available for share repurchases under the program[337](index=337&type=chunk) [Item 3. Defaults Upon Senior Securities](index=59&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) DocGo Inc. reported no defaults upon senior securities for the period - No defaults upon senior securities were reported[338](index=338&type=chunk) [Item 4. Mine Safety Disclosures](index=59&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to DocGo Inc.'s operations - This item is not applicable to the Company[339](index=339&type=chunk) [Item 5. Other Information](index=59&type=section&id=Item%205.%20Other%20Information) No other information was reported under this item - No other information was reported under this item[340](index=340&type=chunk) [Item 6. Exhibits](index=60&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including corporate governance documents, a new credit agreement, and various certifications - Key exhibits include the Second Amended and Restated Certificate of Incorporation, Amended and Restated Bylaws, a Credit Agreement dated November 1, 2022, and various certifications (31.1, 31.2, 32.1, 32.2) and XBRL documents[342](index=342&type=chunk) [Signatures](index=61&type=section&id=Signatures) The report was signed on behalf of DocGo Inc. by Andre Oberholzer, Chief Financial Officer, on November 8, 2022 - The report was signed by Andre Oberholzer, Chief Financial Officer of DocGo Inc., on November 8, 2022[347](index=347&type=chunk)

Financial Data and Key Metrics Changes - Revenue for Q2 2022 increased by 76% year-over-year to $109.5 million, up from $62.2 million in Q2 2021 [6][20] - Adjusted EBITDA for Q2 2022 grew to $12.3 million, compared to $3.4 million in the prior year [25] - Net income for Q2 2022 was $11.8 million, a significant improvement from $100,000 in Q2 2021 [23][24] - Total gross margin percentage increased to 35.9% in Q2 2022 from 34% in the same period of 2021 [26] Business Line Data and Key Metrics Changes - Mobile health revenue for Q2 2022 was $87.3 million, up 163% from $33.2 million in Q2 2021 [21] - Excluding mass COVID testing, mobile health revenue was $59.3 million, an increase of 156% year-over-year [21] - Medical transportation revenues decreased to $22.2 million from $28.9 million in Q2 2021, with recurring transportation revenues increasing by 8% to $20.2 million [21][22] Market Data and Key Metrics Changes - Revenue generated from the UK market increased by 45% to $3.2 million, representing approximately 3% of total revenue [23] - Mass COVID testing revenues for the quarter were approximately $28 million, expected to decline significantly in Q3 [7][31] Company Strategy and Development Direction - The company is focusing on expanding its mobile health services and pursuing M&A opportunities to enhance profitability and market reach [9][40] - The transition from COVID-related services to primary care and other non-COVID services is expected to be seamless, with minimal impact on revenue generation [8][54] - The company aims to maintain a strong balance sheet and cash flow to support growth initiatives [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about strong operational execution and increased revenue guidance for 2022, now projected between $425 million and $435 million [6][33] - The company anticipates continued demand for mobile health and transportation services, with a focus on municipal contracts as a stable revenue source [11][54] - Management acknowledged inflationary pressures on labor and fuel costs but remains committed to improving gross margins [30][44] Other Important Information - The company has significantly enhanced its RFP capabilities, allowing for increased bidding on larger contracts [11] - DocGo's NPS score for mobile health services was an impressive 77, indicating strong customer satisfaction [14] - The company announced a share repurchase program of up to $40 million, having repurchased 70,000 shares at an average cost of $7.10 during the quarter [29] Q&A Session Summary Question: Can you provide transport volumes and pricing for the quarter? - Management did not disclose specific transport volumes but indicated an increase in trip volume and price per call, projecting a 30% growth in transportation revenue [35][36] Question: What is the outlook for M&A opportunities? - The focus is on mobile health services, with expectations of more opportunities arising in the near future [39][40] Question: How does the guidance reflect organic growth versus M&A? - The increase in guidance is primarily based on organic growth, with some small tuck-in acquisitions for licensing capabilities [42][43] Question: What are the expectations for gross margins in the second half of the year? - Management expects to maintain or improve gross margins, despite inflationary pressures [44][56] Question: Can you provide insights on new contracts and the pipeline? - Management noted strong contract signing activity and a robust pipeline, particularly in municipal contracts [49][54]

[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including balance sheets, statements of operations, changes in stockholders' equity, and cash flows, with accompanying notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheets (June 30, 2022 vs. December 31, 2021) | Metric | June 30, 2022 | December 31, 2021 | | :--------------------------- | :---------------- | :---------------- | | Total Assets | $331,855,388 | $309,602,652 | | Total Liabilities | $77,461,692 | $82,545,628 | | Total Stockholders' Equity | $254,393,696 | $227,057,024 | [Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20%28Loss%29) Revenue, Net | Period | 3 Months Ended June 30, 2022 | 3 Months Ended June 30, 2021 | 6 Months Ended June 30, 2022 | 6 Months Ended June 30, 2021 | | :-------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | **Amount** | $109,519,304 | $62,185,997 | $227,410,856 | $111,555,391 | | **YoY Change (3 Months)** | **+76.1%** | | | | | **YoY Change (6 Months)** | | | **+103.9%** | | Net Income (Loss) Attributable to Stockholders of DocGo Inc. and Subsidiaries | Period | 3 Months Ended June 30, 2022 | 3 Months Ended June 30, 2021 | 6 Months Ended June 30, 2022 | 6 Months Ended June 30, 2021 | | :-------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | **Amount** | $12,735,653 | $(1,646,216) | $23,365,347 | $(3,324,580) | Net Income (Loss) Per Share Attributable to DocGo Inc. and Subsidiaries | Metric | 3 Months Ended June 30, 2022 | 3 Months Ended June 30, 2021 | 6 Months Ended June 30, 2022 | 6 Months Ended June 30, 2021 | | :-------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | **Basic** | $0.13 | $(18.19) | $0.23 | $(36.73) | | **Diluted** | $0.11 | $(18.19) | $0.20 | $(36.73) | [Unaudited Condensed Consolidated Statements of Changes in Stockholders' Equity](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) - Total Stockholders' Equity increased from **$227,057,024** as of December 31, 2021, to **$254,393,696** as of June 30, 2022[18](index=18&type=chunk) - Common Stock issued and outstanding increased to **100,685,290** shares as of June 30, 2022, from **100,133,953** shares as of December 31, 2021[18](index=18&type=chunk) - Additional paid-in capital increased by **$4,140,251** from December 31, 2021, to June 30, 2022, primarily due to stock option exercises and stock-based compensation[18](index=18&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net Cash Flow by Activity (Six Months Ended June 30) | Activity | 2022 | 2021 | | :-------------------------------- | :---------------- | :---------------- | | Net cash provided by operating activities | $30,186,977 | $(1,145,393) | | Net cash used in investing activities | $(1,958,085) | $(3,599,334) | | Net cash provided by financing activities | $1,122,290 | $7,048,733 | | Net increase in cash and restricted cash | $29,355,753 | $2,406,659 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures for the unaudited condensed consolidated financial statements, covering business operations, accounting policies, assets, liabilities, equity, revenue recognition, and other financial instruments [1. Description of Organization and Business Operations](index=10&type=section&id=1.%20Description%20of%20Organization%20and%20Business%20Operations) - DocGo Inc. completed a business combination with Ambulnz, Inc. on **November 5, 2021**, making Ambulnz a wholly-owned subsidiary[31](index=31&type=chunk)[32](index=32&type=chunk) - The business combination generated **$158.0 million** in net proceeds, including **$43.4 million** from Motion's trust account and **$114.6 million** from PIPE Financing[33](index=33&type=chunk) - DocGo operates as a healthcare transportation and mobile health services company, utilizing proprietary dispatch and communication technology in the U.S. and U.K[34](index=34&type=chunk) [2. Summary of Significant Accounting Policies](index=11&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) - The merger between Motion and Ambulnz was accounted for as a reverse recapitalization, with Ambulnz, Inc. treated as the accounting acquirer for financial reporting purposes[42](index=42&type=chunk) - The Company consolidates MD1 Medical Care P.C. as a variable interest entity (VIE) due to its controlling financial interest[44](index=44&type=chunk) - As of June 30, 2022, two major customers accounted for approximately **30%** and **17%** of sales, and **15%** and **12%** of net accounts receivable, respectively[52](index=52&type=chunk) Revenue by Geographical Markets (Six Months Ended June 30) | Market | 2022 | 2021 | | :----- | :--- | :--- | | U.S. | $221,368,244 | $107,308,709 | | U.K. | $6,042,612 | $4,246,682 | | **Total** | **$227,410,856** | **$111,555,391** | Revenue by Major Segments/Service Lines (Six Months Ended June 30) | Segment | 2022 | 2021 | | :--------------------------- | :---------------- | :---------------- | | Transportation Services | $49,987,743 | $47,740,979 | | Mobile Health | $177,423,113 | $63,814,412 | | **Total** | **$227,410,856** | **$111,555,391** | [3. Property and Equipment, net](index=20&type=section&id=3.%20Property%20and%20Equipment%2C%20net) Property and Equipment, Net (June 30, 2022 vs. December 31, 2021) | Category | June 30, 2022 | December 31, 2021 | | :--------------------------- | :---------------- | :---------------- | | Office equipment and furniture | $2,292,194 | $1,977,808 | | Buildings | $527,284 | $527,284 | | Land | $37,800 | $37,800 | | Transportation equipment | $14,027,121 | $13,772,251 | | Medical equipment | $4,285,584 | $3,949,566 | | Leasehold improvements | $603,073 | $616,446 | | **Total Gross** | **$21,773,056** | **$20,881,155** | | Less: Accumulated depreciation | $(9,543,059) | $(8,147,266) | | **Property and equipment, net** | **$12,229,997** | **$12,733,889** | - Depreciation expense for the six months ended June 30, 2022, was **$1,441,438**, up from **$1,099,192** in

Financial Data and Key Metrics Changes - Total revenue for Q1 2022 was $118 million, a growth of 137% compared to Q1 2021 [6][25] - Adjusted EBITDA for Q1 2022 was $13.9 million, significantly improved from $0.4 million in Q1 2021, with an adjusted EBITDA margin of 11.8% [8][25] - Net income for Q1 2022 was $9.4 million, a substantial improvement from a net loss of $2 million in Q1 2021 [9][25] - Cash and cash equivalents as of March 31, 2022, totaled $188.4 million, up from $135.5 million at the end of 2021 [28] Business Line Data and Key Metrics Changes - Mobile Health division generated revenue of $90.1 million in Q1 2022, a 193% increase from $30.7 million in Q1 2021 [7][25] - Transportation revenue was $27.8 million, a 46% increase from $19 million in Q1 2021 [8][25] - Excluding COVID testing revenue, total Q1 revenues increased approximately 2.7 times year-over-year, from about $29 million in Q1 2021 to approximately $80 million in Q1 2022 [25] Market Data and Key Metrics Changes - The UK market revenue grew by 40% to $2.8 million during Q1 2022, representing about 2% of total revenue [25] - The company provided services in 29 states and the UK, with significant growth opportunities in both existing and new markets [10][20] Company Strategy and Development Direction - The company aims to transition from COVID-related services to longer-term non-COVID work, focusing on building lasting customer relationships [9][19] - Plans to expand direct-to-consumer offerings and enhance technology integration with existing healthcare systems [15][64] - The company is pursuing international expansion, particularly in the UK, while also targeting the untapped U.S. market [20][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for mobile health and transportation services, maintaining revenue guidance of $400 million to $420 million for 2022 [31][54] - The transition from COVID testing to new mobile health contracts is expected to be seamless, with a focus on timing and resource allocation [41][60] - Management highlighted the significant market opportunity for home-based care, projecting a shift of up to $265 billion in medical care to home settings by 2025 [23] Other Important Information - The company unveiled the first zero-emission all-electric ambulance in the U.S. and aims to convert to an all-electric fleet by 2032 [21] - The company has expanded its workforce, with over 4,000 full-time personnel, primarily clinical providers, and anticipates reaching around 5,000 by year-end [44] Q&A Session Summary Question: What is the COVID testing revenue for 2021? - The estimated COVID testing revenue for 2021 was $110 million, with an anticipated $55 million for 2022 in the first half [36][37] Question: How is the transition from COVID contracts to long-term work progressing? - The transition is primarily about timing, ensuring personnel are ready for new contracts as COVID work winds down [41][42] Question: What is the final provider headcount at the quarter end? - The final provider headcount was over 4,000, with expectations to reach around 5,000 by the end of the year [44] Question: How does the revenue transition from COVID testing to new services look? - The revenue model remains consistent, with minimal variation as practitioners transition from COVID testing to other clinical services [45][46] Question: What are the gross margin targets for mobile health and transportation? - Long-term gross margin targets are 50% to 53% for mobile health and 40% to 42% for transportation [69]

[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for the three months ended March 31, 2022, and 2021, including balance sheets, statements of operations, changes in stockholders' equity, and cash flows, along with detailed notes [Condensed Consolidated Financial Statements](index=5&type=section&id=Condensed%20Consolidated%20Financial%20Statements) For Q1 2022, DocGo reported significant year-over-year revenue growth, primarily driven by its Mobile Health segment, achieving a net income of **$9.4 million** from a prior-year net loss, with increased total assets and cash reserves Condensed Consolidated Statement of Operations (Q1 2022 vs Q1 2021) | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :--- | :--- | :--- | | **Revenue, net** | $117,891,552 | $49,688,856 | | **Income (loss) from operations** | $10,094,565 | ($1,873,958) | | **Net income (loss)** | $9,372,437 | ($1,998,996) | | **Net income (loss) attributable to stockholders** | $10,629,694 | ($1,678,364) | | **Net income (loss) per share - Basic** | $0.11 | ($0.03) | | **Net income (loss) per share - Diluted** | $0.09 | ($0.03) | Condensed Consolidated Balance Sheet Highlights | Metric | March 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $188,353,909 | $175,537,221 | | **Total current assets** | $268,170,785 | $256,032,491 | | **Total assets** | $325,196,304 | $309,602,652 | | **Total current liabilities** | $60,992,489 | $57,875,921 | | **Total liabilities** | $84,931,995 | $82,545,628 | | **Total stockholders' equity** | $240,264,309 | $227,057,024 | Condensed Consolidated Statement of Cash Flows (Q1 2022 vs Q1 2021) | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | $18,264,682 | ($1,384,175) | | **Net cash used in investing activities** | ($1,137,040) | ($1,276,054) | | **Net cash provided by (used in) financing activities** | $2,496,798 | ($550,591) | | **Net increase (decrease) in cash and restricted cash** | $19,618,577 | ($3,202,822) | [Notes to Unaudited Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's business operations, significant accounting policies, and specifics on financial statement line items, including reverse recapitalization accounting, revenue disaggregation, customer concentration, stock-based compensation, and COVID-19 impact - The company operates as a healthcare transportation and mobile health services provider in the US and UK, becoming a public company (DocGo Inc.) on November 5, 2021, after a merger with Motion Acquisition Corp, accounted for as a reverse recapitalization with Ambulnz, Inc. as the accounting acquirer[28](index=28&type=chunk)[31](index=31&type=chunk)[38](index=38&type=chunk) Revenue by Segment and Geography (Q1 2022 vs Q1 2021) | Category | Service Line | Q1 2022 Revenue | Q1 2021 Revenue | | :--- | :--- | :--- | :--- | | **Segment** | Transportation Services | $27,812,510 | $19,124,020 | | | Mobile Health | $90,079,042 | $30,564,836 | | **Geography** | United States | $115,053,431 | $47,681,374 | | | United Kingdom | $2,838,121 | $2,007,482 | | **Total** | | **$117,891,552** | **$49,688,856** | - The company has significant customer concentration, with two customers accounting for **34%** and **19%** of sales, respectively, for the quarter ended March 31, 2022[48](index=48&type=chunk) - The COVID-19 pandemic had a mixed impact, reducing non-emergency medical transport volumes but significantly boosting revenue through the company's Rapid Reliable Testing (RRT) subsidiary, part of the Mobile Health segment[181](index=181&type=chunk)[182](index=182&type=chunk) - As of March 31, 2022, the company had **$22.9 million** in total unrecognized compensation related to unvested stock option awards, expected to be recognized over a weighted-average period of **3.58 years**[149](index=149&type=chunk) - The company recorded a liability of **$1,000,000** for an agreed settlement related to various class-based claims under Federal and California State law, which is subject to court approval[178](index=178&type=chunk) [Management's Discussion and Analysis (MD&A)](index=35&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's Q1 2022 performance, highlighting a **137%** increase in total revenue to **$117.9 million**, driven by a **194%** surge in Mobile Health services, achieving a net income of **$9.4 million** from a prior-year loss [Results of Operations](index=39&type=section&id=Results%20of%20Operations) In Q1 2022, total revenues grew **137%** to **$117.9 million**, with Mobile Health revenue increasing **194%** to **$90.1 million** and Transportation Services revenue growing **46%** to **$27.8 million**, leading to improved gross margin and an operating income of **$10.1 million** Consolidated Results of Operations (in Millions) | Metric | Q1 2022 | Q1 2021 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Revenues, net** | $117.9 | $49.7 | $68.2 | 137% | | **Cost of revenue** | $78.0 | $35.9 | $42.1 | 117% | | **Income/(loss) from operations** | $10.1 | ($1.9) | $12.0 | N/A | | **Net income (loss)** | $9.4 | ($2.0) | $11.4 | N/A | - Mobile Health revenue surged by **194%** to **$90.1 million**, primarily due to the expansion of COVID-19 related testing and other healthcare services[224](index=224&type=chunk) - Transportation Services revenue increased by **46%** to **$27.8 million**, driven by a **5%** rise in trip volumes and a significant increase in the average price per trip from **$283** to **$353**[223](index=223&type=chunk) - Cost of revenue as a percentage of revenue decreased to **66.2%** from **72.2%** in Q1 2021, indicating improved gross margin despite increased absolute costs for labor, supplies, and fuel[225](index=225&type=chunk) [Liquidity and Capital Resources](index=42&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity position is strong, with cash of **$188.4 million** and working capital of **$207.2 million** as of March 31, 2022, primarily due to November 2021 merger proceeds and **$18.2 million** in cash generated from operations - The company received net proceeds of approximately **$158.1 million** from its merger in November 2021, significantly bolstering its liquidity[240](index=240&type=chunk) Working Capital (in Millions) | Metric | March 31, 2022 | March 31, 2021 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Current Assets** | $268.2 | $62.7 | $205.5 | 328% | | **Current Liabilities** | $61.0 | $31.0 | $30.0 | 97% | | **Total working capital** | $207.2 | $31.7 | $175.5 | 554% | - Net cash provided by operating activities was **$18.2 million** for Q1 2022, a significant improvement from the **$1.4 million** used in Q1 2021, driven by net income and favorable working capital changes[246](index=246&type=chunk) [Critical Accounting Policies](index=45&type=section&id=Critical%20Accounting%20Policies) This section outlines the company's most critical accounting policies, which involve significant judgments and estimates, including the basis of presentation (reverse recapitalization), consolidation of a Variable Interest Entity (VIE), business combinations, goodwill impairment testing, revenue recognition, and income taxes - The merger with Motion Acquisition Corp. was accounted for as a reverse recapitalization, with Ambulnz, Inc. treated as the accounting acquirer[256](index=256&type=chunk) - The company consolidates MD1 Medical Care P.C., a Variable Interest Entity (VIE), because it has the power to direct its activities and absorbs its losses[258](index=258&type=chunk) - Goodwill and indefinite-lived intangible assets are not amortized but are tested for impairment annually on December 31, or more frequently if events indicate potential impairment[264](index=264&type=chunk)[266](index=266&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=47&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is classified as a smaller reporting company and is therefore not required to provide the disclosures typically found under this item - As a smaller reporting company, DocGo is exempt from the requirement to provide quantitative and qualitative disclosures about market risk[273](index=273&type=chunk) [Controls and Procedures](index=47&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of March 31, 2022, with no material changes to internal control over financial reporting identified during the quarter - Management concluded that the company's disclosure controls and procedures are effective in ensuring timely and accurate reporting[274](index=274&type=chunk) - There were no changes during the quarter ended March 31, 2022, that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[275](index=275&type=chunk) [PART II - OTHER INFORMATION](index=48&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Legal Proceedings & Risk Factors](index=48&type=section&id=Item%201.%20Legal%20Proceedings%20%26%20Item%201A.%20Risk%20Factors) The company is involved in legal proceedings arising in the ordinary course of business, and while most risk factors remain unchanged from the 2021 Form 10-K, a new risk related to inflation has been highlighted due to increasing costs compressing gross margins - The company is subject to legal proceedings and government information requests that arise in the ordinary course of business[277](index=277&type=chunk)[278](index=278&type=chunk) - A new inflation rate risk has been identified, noting that the high inflation rate in Q1 2022 (reaching **8.5%** in March) has increased expenses for wages, fuel, and medical supplies, compressing gross profit margins[280](index=280&type=chunk) [Other Disclosures (Items 2, 3, 4, 5, 6)](index=48&type=section&id=Other%20Disclosures%20%28Items%202%2C%203%2C%204%2C%205%2C%206%29) This section confirms there were no unregistered sales of equity securities, no defaults upon senior securities, and no other material information to report during the period, with a list of exhibits filed with the 10-Q provided - The company reports no unregistered sales of equity securities, defaults on senior securities, mine safety disclosures, or other information for the quarter[280](index=280&type=chunk)[281](index=281&type=chunk)[282](index=282&type=chunk)[283](index=283&type=chunk)

Financial Data and Key Metrics Changes - Full year 2021 total company revenue reached $318.7 million, a growth of over 239% compared to $94 million in 2020 [5][29] - Adjusted full year 2021 EBITDA was $25.1 million, a significant improvement from an adjusted EBITDA loss of $8.1 million in 2020 [6][31] - Net income for the full year was $19.2 million, compared to a net loss of $14.8 million in 2020 [31][32] - Q4 2021 total revenue was over $121 million, representing a growth of 289% from $31 million in Q4 2020 [27][29] - Q4 adjusted EBITDA grew to $17.3 million, compared to an EBITDA loss of $2.9 million in the prior year [28][31] Business Line Data and Key Metrics Changes - Mobile Health revenue for fiscal 2021 was $234.4 million, up 659% from $31 million in the prior year [29] - Medical transportation revenue amounted to $84.3 million, a 33% increase from $63.1 million in fiscal 2020 [29] - Q4 Mobile Health revenue was $102.6 million, compared to $15.8 million in Q4 2020, reflecting a growth of approximately 6.5 times [27][28] - Medical transport revenue in Q4 was $18.7 million, up 21% from $15.4 million in Q4 2020 [28] Market Data and Key Metrics Changes - The U.S. addressable market for the company's services is estimated to be approximately $102 billion, largely untapped [23] - A report by McKinsey suggests that up to $265 billion in medical care currently delivered in healthcare facilities will shift to home-based care by 2025 [24] - The company has provided mobile health solutions in 29 states and is licensed to operate in more [12] Company Strategy and Development Direction - The company aims to expand its mobile health and transportation services, focusing on high-quality, affordable healthcare delivery [8][10] - A notable contract with Aetna in New York and New Jersey is expected to drive future growth, providing services to over 2.5 million people [14] - The company is piloting a direct-to-consumer offering to provide cost-effective treatment alternatives for non-emergency conditions [15] - Investments in technology are seen as a significant competitive advantage, enhancing care coordination and patient experience [16][25] Management's Comments on Operating Environment and Future Outlook - Management anticipates a conservative approach to COVID testing revenue, projecting no revenue from it after Q2 2022 [7][42] - Demand for services remains strong, particularly due to staffing shortages in hospitals and healthcare systems [46][48] - The company expects to achieve fiscal 2022 revenues of approximately $400 million to $420 million, representing a 26% to 32% increase over 2021 [7][33] Other Important Information - The company hired over 900 new employees in Q4 2021, totaling over 2,300 hires for the year [32] - Cash and cash equivalents totaled $175.5 million as of December 30, 2021, with minimal debt of approximately $2 million [32] Q&A Session Summary Question: Growth rate and catalysts for mobile transport - Management indicated that growth in transportation is dependent on securing new licenses, with expectations of 35% to 40% growth per year [35][36] Question: Guidance on gross margin - Management expects gross margins to improve over time, targeting 51% to 52% for mobile health and 40% to 43% for transportation [38][52] Question: COVID revenue assumptions for 2022 - Management anticipates COVID testing revenue to drop to zero by July 1, 2022, with a conservative approach to forecasting [42][86] Question: Demand environment and staffing shortages - Management noted strong demand due to staffing shortages in healthcare systems, with a focus on providing services without adding strain to existing staff [46][48] Question: Visibility into 2022 revenue - Management outlined a five-point process for revenue guidance, considering existing contracts, pipeline contracts, and market expansion [58][63]