DocGo (US:DCGO)2025-05-08 20:35PART I - FINANCIAL INFORMATION This section presents the company's financial statements, management's discussion and analysis, market risk disclosures, and controls and procedures Financial Statements The company experienced a significant revenue decline and a shift to net loss in Q1 2025, with decreased assets and equity, while operating cash flow turned positive Condensed Consolidated Balance Sheet Highlights | Metric | March 31, 2025 (Unaudited) ($) | December 31, 2024 (Audited) ($) | | :--- | :--- | :--- | | Total Current Assets | 262,531,431 | 304,486,263 | | Total Assets | 430,792,998 | 455,621,132 | | Total Current Liabilities | 107,571,098 | 121,806,577 | | Total Liabilities | 128,868,195 | 140,442,002 | | Total Stockholders' Equity | 301,924,803 | 315,179,130 | Condensed Consolidated Statements of Operations Highlights | Metric | Three Months Ended March 31, 2025 ($) | Three Months Ended March 31, 2024 ($) | | :--- | :--- | :--- | | Revenues, net | 96,033,055 | 192,087,529 | | (Loss) income from operations | (13,997,438) | 15,875,367 | | Net (loss) income | (11,079,300) | 10,603,379 | | Net (loss) income per share - Diluted | (0.09) | 0.10 | Condensed Consolidated Statements of Cash Flows Highlights | Metric | Three Months Ended March 31, 2025 ($) | Three Months Ended March 31, 2024 ($) | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | 9,655,467 | (10,639,744) | | Net cash used in investing activities | (5,733,052) | (1,699,741) | | Net cash used in financing activities | (8,518,416) | (881,579) | | Net decrease in cash and restricted cash | (4,278,263) | (13,324,123) | Notes to Unaudited Condensed Consolidated Financial Statements This section details the company's segment operations, customer concentration, recent acquisition, and ongoing legal proceedings, alongside key accounting policies - The company operates in three segments: Mobile Health Services, Transportation Services, and Corporate. The Corporate segment handles shared services and does not generate revenue28 - The company has significant customer concentration, with one customer accounting for 47% of revenues and 45% of net accounts receivable for the three months ended March 31, 202543 - On February 10, 2025, the Company acquired 100% of Professional Technicians, LLC (PTI) for $4.0 million in cash consideration and up to $1.5 million in contingent consideration128 - The company is involved in several legal proceedings, including California Labor Actions, a Stockholder Action, and a Cybersecurity Action, with some reaching settlement in principle231234237 Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) Management discusses a 50% revenue decrease in Q1 2025, primarily from the Mobile Health segment, leading to an operating loss, while Transportation Services showed modest growth Q1 2025 vs Q1 2024 Results of Operations ($ in Millions) | Metric | Q1 2025 ($ in Millions) | Q1 2024 ($ in Millions) | Change ($ in Millions) | Change % | | :--- | :--- | :--- | :--- | :--- | | Revenues, net | 96.0 | 192.1 | (96.1) | (50.0)% | | Cost of revenues | 65.2 | 124.8 | (59.6) | (47.8)% | | (Loss) income from operations | (14.0) | 15.9 | (29.9) | (188.1)% | | Net (loss) income | (11.1) | 10.6 | (21.7) | (204.7)% | - Mobile Health Services revenue decreased by $98.7 million (68.6%) YoY, primarily due to the ongoing wind-down of migrant-related services in New York280 - Transportation Services revenue increased by $2.6 million (5.4%) YoY, driven by a 5.9% increase in trip volumes, although the average trip price decreased from $400 to $378281 - The company generated $9.6 million in cash from operations in Q1 2025, a significant improvement from a $10.6 million use of cash in Q1 2024, mainly due to a $31.4 million decrease in accounts receivable302303 Quantitative and Qualitative Disclosures About Market Risk The company faces market risks from interest rates and significant customer concentration, with limited foreign exchange exposure, and does not use hedging instruments - The company is subject to interest rate risk on its Revolving Facility, with $30 million outstanding as of March 31, 2025, where a hypothetical 10% change would have had a neutral net impact on financial statements for the quarter339 - Foreign exchange risk from U.K. operations is considered limited, with a hypothetical 10% change in the exchange rate in Q1 2025 changing total revenues by approximately 1.1%340 - Significant customer concentration risk exists, with one customer accounting for 47% of revenues and 45% of net accounts receivable in Q1 2025, compared to two customers accounting for 39% and 32% of revenues respectively in Q1 2024342 Controls and Procedures Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report343 - No changes occurred in the company's internal control over financial reporting during the quarter ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, internal controls344 PART II - OTHER INFORMATION This section covers legal proceedings, risk factors, equity security sales, and other required disclosures Legal Proceedings The company is involved in several legal actions, including resolved California Labor Actions, ongoing Stockholder Action, and a settled Cybersecurity Action - The company is subject to legal proceedings arising in the ordinary course of business, as detailed in Note 19 of the financial statements348 Risk Factors There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes have been made to the risk factors disclosed in the 2024 Annual Report on Form 10-K350 Unregistered Sales of Equity Securities and Use of Proceeds The company actively repurchased shares under its program in Q1 2025, with approximately $16.3 million remaining for future repurchases Share Repurchases in Q1 2025 | Month | Total Number of Shares Purchased | Average Price Paid per Share ($) | Approximate Dollar Value of Shares that May Yet be Purchased ($) | | :--- | :--- | :--- | :--- | | January 2025 | — | — | 22,045,655 | | February 2025 | — | — | 22,045,655 | | March 2025 | 1,953,169 | 2.92 | 16,332,764 | | Total | 1,953,169 | 2.92 | 16,332,764 | - The Board authorized a new share repurchase program for up to $26 million, which expires on June 30, 2025352 Defaults Upon Senior Securities None Mine Safety Disclosures Not applicable Other Information No directors or officers adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter - No directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement or non-Rule 105b-1 trading arrangement during the quarter361 Exhibits This section lists the exhibits filed with the Form 10-Q, including the company's certificate of incorporation, bylaws, and officer certifications, as well as Inline XBRL data files