DocGo (DCGO) - 2022 Q2 - Quarterly Report

PART I - FINANCIAL INFORMATION Item 1. Financial Statements 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 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) 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 - Total Stockholders' Equity increased from $227,057,024 as of December 31, 2021, to $254,393,696 as of June 30, 2022[18] - 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] - 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] Unaudited Condensed Consolidated Statements of Cash Flows 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 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 - DocGo Inc. completed a business combination with Ambulnz, Inc. on November 5, 2021, making Ambulnz a wholly-owned subsidiary[31][32] - 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] - 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] 2. Summary of Significant Accounting Policies - 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] - The Company consolidates MD1 Medical Care P.C. as a variable interest entity (VIE) due to its controlling financial interest[44] - 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] 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 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