What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-11-10 compared with 2025-08-07 · 156 added, 159 removed, 440 unchanged (42% of the section changed)

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The discussion and analysis below contain certain forward-looking statements about our business and operations that are subject to the risks, uncertainties and other factors described in the section entitled “Risk Factors” included in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024, and as may be updated in this and other subsequent Quarterly Reports on Form 10-Q.

These risks, uncertainties and other factors could cause our actual results to differ materially from those expressed in, or implied by, the forward-looking statements.

These risks, uncertainties and other factors could cause our actual results or outcomes to differ materially from those expressed in, or implied by, the forward-looking statements.

Please refer to the section below entitled “Cautionary Note Regarding Forward-Looking Statements.”

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our ability to expand our programs with insurance partners, hospital systems, municipalities and other strategic partners;

our ability to successfully implement our business strategy, including delivering value to shareholders via buybacks, funding new strategic relationships and potentially repaying our line of credit;

our ability to successfully implement our business strategy, including delivering value to shareholders via buybacks and funding new strategic relationships;

our ability to establish, maintain and grow customer relationships;

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our ability to retain our workforce and management personnel and successfully manage leadership transitions;

availability of healthcare professionals and other personnel;

the availability of healthcare professionals

and other personnel;

changes in the cost of labor;

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risks associated with our share repurchase program;

overall macroeconomic and geopolitical conditions, including the interest rate environment, the inflationary environment, the potential recessionary environment, regional conflict and tensions, financial institution instability and any prospect of a shutdown of the U.S.

federal government;

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Net revenue from Transportation Services is derived from the transportation of patients based on billings to third party payors and healthcare facilities.

For the three months ended June 30, 2025, the Company recorded a net loss of $13.3 million, compared to net income of $5.8 million in the three months ended June 30, 2024.

For the six months ended June 30, 2025, the Company recorded a net loss of $24.3 million, compared to net income of $16.5 million in the six months ended June 30, 2024.

For the three months ended September 30, 2025, the Company recorded a net loss of $29.7 million, compared to net income of $4.5 million in the three months ended September 30, 2024.

For the nine months ended September 30, 2025, the Company recorded a net loss of $54.0 million, compared to net income of $21.0 million in the nine months ended September 30, 2024.

Factors Affecting Our Results of Operations

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our competitive environment;

federal government;

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declined during the second half of 2024, and the annual inflation rate declined to 2.9% for the full year 2024 from 4.1% in 2023 and 8.0% in 2022.

For 2025 to date, the inflation rate has remained moderate, with readings of 3.0% in January, 2.8% in February, 2.4% in March, 2.3% in April, 2.4% in May and 2.7% in June.

However, the introduction of new tariffs on imported goods has led to the prospect of increased inflation over the second half of 2025 and beyond.

For 2025 to date, the inflation rate has remained moderate, with monthly year-over-year readings between 2.3% and 3.0%.

However, the introduction of new tariffs on imported goods, and the uncertainty surrounding the tariff rates, has led to the prospect of increased inflation over the fourth quarter of 2025 and beyond.

The increased inflation rate witnessed between 2021 and 2024 had an impact on the Company’s expenses in several areas, including wages, fuel and medical and other supplies.

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Future acquisitions may also include companies that may help drive revenue, profitability, cash flow and stockholder value.

During the six months ended June 30, 2025, the Company completed one acquisition, for $4.2 million.

The Company did not complete any acquisitions during the six months ended June 30, 2024.

During the nine months ended September 30, 2025, the Company completed one acquisition, for $4.2 million.

The Company did not complete any acquisitions during the nine months ended September 30, 2024.

Investing in R&D and Enhancing our Customer Experience

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For example, starting in the second quarter of 2023, the Company began providing services to the recent migrant population in New York City and in upstate New York.

Some of these services were provided pursuant to a contract with an ending date during the second quarter of 2024.

While a portion of that

contract was extended through December 31, 2024, other services began to wind down in May 2024.

Some of these services

were provided pursuant to a contract with an ending date during the second quarter of 2024.

While a portion of that contract was extended through December 31, 2024, other services began to wind down in May 2024.

The wind-down of all services under such contract was completed in the fourth quarter of 2024.

While the Company continued to provide services under other contracts during the first and second quarters of 2025, the wind-down of those services is nearly complete and the Company expects that the revenues from these migrant-related projects will be significantly lower in 2025 than they were in 2024 and in the second half of 2023.

While the Company continued to provide services under other contracts during the first nine months of 2025, the wind-down of the remaining migrant-related services under other contracts is nearly complete, and the Company expects that the revenues from any remaining migrant-related projects will be relatively insignificant in 2026.

As such, despite the Company’s expectation for revenue growth in other business lines within the Mobile Health Services segment, we expect that overall Mobile Health Services revenues will be lower in 2026 than they were in 2025, given the absence of migrant-related project revenues.

In addition, government contract work subjects the Company to government audits, investigations and proceedings, which could lead to the Company to being barred from government work or subjected to fines if it is determined that a statute, rule, regulation, policy or contractual provision has been violated.

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Our sales, advertising and marketing expenses consist of costs directly associated with our sales and marketing activities, which primarily include sales commissions, marketing programs, trade shows and promotional materials and general branding.

We expect our sales, advertising and marketing expenses to continue to increase over time as we increase our marketing activities, expand into new geographic markets and customer verticals, particularly in the Mobile Health segment;

and continue to build brand awareness.

Interest Expense

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Results of Operations

Comparison of the Three Months Ended June 30, 2025 and 2024

Three Months Ended June 30, Change

Comparison of the Three Months Ended September 30, 2025 and 2024

Three Months Ended September 30, Change

$ in Millions 2025 2024

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Sales, advertising and marketing 0.4 0.6 % 0.4 0.3 % — — %

Finite-lived intangible asset impairment 8.0 11.3 % — — % 8.0 100.0 %

Goodwill impairment 8.7 12.3 % — — % 8.7 100.0 %

Total expenses 112.8 159.3 % 128.6 92.7 % (15.8) (12.3) %

2 unchanged sentences

Interest expense, net (0.2) (0.2) % (0.5) (0.4) % 0.3 60.0 %

Change in fair value of contingent liability — — % (0.3) (0.2) % 0.3 100.0 %

Loss on change in fair value of contingent consideration (1.1) (1.6) % — — % (1.1) (100.0) %

Loss on equity method investments — — % (0.1) — % 0.1 100.0 %

Other income 0.1 0.1 % 0.3 0.2 % (0.2) (66.7) %

Other income (expense) 0.1 0.1 % (0.5) (0.4) % 0.6 120.0 %

Total other expense (1.2) (1.7) % (1.1) (0.8) % (0.1) (9.1) %

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and Subsidiaries $ (27.8) (39.2) % $ 5.5 4.0 % $ (33.3) (605.5) %

For the three months ended June 30, 2025, total revenues were $80.4 million, a decrease of $84.5 million, or 51.2%, compared to the three months ended June 30, 2024.

For the three months ended September 30, 2025, total revenues were $70.8 million, a decrease of $67.9 million, or 49.0%, compared to the three months ended September 30, 2024.

Mobile Health Services

For the three months ended June 30, 2025, Mobile Health Services revenues were $30.8 million, a decrease of $85.9 million, or 73.6%, compared to the three months ended June 30, 2024.

For the three months ended September 30, 2025, Mobile Health Services revenues were $20.7 million, a decrease of $70.0 million, or 77.2%, compared to the three months ended September 30, 2024.

The decline in revenues was due to the ongoing wind-down of migrant-related services, which had ramped up sharply in the third quarter of 2023 and peaked in the first quarter of 2024.

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The wind-down of all services under such contract was completed in the fourth quarter of 2024.

While the exact timing of the wind-down of the remaining migrant-related services under other contracts is still uncertain, this process is nearly complete and the Company expects that the revenues from any remaining migrant-related projects will be significantly lower in 2025 than in 2024 and the second half of 2023.

As such, while we expect to launch new Mobile Health Services projects in 2025 and to expand existing projects, we expect that overall Mobile Health Services revenues will be significantly lower in 2025 than they were in 2024.

The wind-down of the remaining migrant-related services under other contracts is nearly complete, and the Company expects that the revenues from any remaining migrant-related projects will be relatively insignificant in 2026.

Transportation Services

For the three months ended June 30, 2025, Transportation Services revenues were $49.6 million an increase of $1.4 million, or 2.9%, compared to the three months ended June 30, 2024.

This increase was despite a 1.5% decrease in U.S.

trip volumes, to 72,598 trips in the three months ended June 30, 2025, from 73,722 trips for the three months ended June 30, 2024.

Offsetting this decline in volume was an increase in the average trip price to $410 in the three months ended June 30, 2025, from $393 in the three months ended June 30, 2024.

The increase in the average trip price in the 2025 period reflected a shift in mix toward higher-priced transports when compared to the same period in 2024 in some of the Company’s markets.

For the three months ended September 30, 2025, Transportation Services revenues were $50.1 million, an increase of $2.1 million, or 4.4%, compared to the three months ended September 30, 2024.

This increase was due to a 2.5% increase in U.S.

trip volumes, to 71,541 trips in the three months ended September 30, 2025, from 69,776 trips for the three months ended September 30, 2024.

The average trip price rose to $411 in the three months ended September 30, 2025, from $404 in the three months ended September 30, 2024.

Cost of revenues

For the three months ended June 30, 2025, total cost of revenues (exclusive of depreciation and amortization) decreased by 49.6% compared to the three months ended June 30, 2024, while revenues decreased by approximately 51.2%.

Cost of revenues as a percentage of revenues increased to 68.4% in the three months ended June 30, 2025 from 66.2% in the three months ended June 30, 2024.

Total cost of revenues in the three months ended June 30, 2025 decreased by $54.1 million compared to the same period in 2024.

This decrease was primarily attributable to a $9.4 million decrease in total compensation, a $31.0 million decline in subcontracted labor costs and a $9.6 million decline in medical and related supplies, all of which were driven by the Mobile Health Services segment, due to the ongoing wind-down of migrant-related projects during the quarter;

a $1.3 million decrease in vehicle costs and a $2.8 million net decrease in other cost of revenues categories.

For the Mobile Health Services segment, cost of revenues (exclusive of depreciation and amortization) in the three months ended June 30, 2025 amounted to $20.8 million, down 72.2% from $74.9 million in the three months ended June 30, 2024.

For the three months ended September 30, 2025, total cost of revenues (exclusive of depreciation and amortization) decreased by 40.7% compared to the three months ended September 30, 2024, while revenues decreased by approximately 49.0%.

Cost of revenues as a percentage of revenues increased to 74.4% in the three months ended September 30, 2025 from 64.0% in the three months ended September 30, 2024.

Total cost of revenues in the three months ended September 30, 2025 decreased by $36.1 million compared to the same period in 2024.

This decrease was primarily attributable to a $7.0 million decrease in total compensation, a $24.7 million decline in subcontracted labor costs and a $4.8 million decline in medical and related supplies, all of which were driven by the Mobile Health Services segment, due to the ongoing wind-down of migrant-related projects during the quarter, and a $2.3 million net decrease in other cost of revenues categories.

These decreases were partially offset by a $2.7 million increase in vehicle costs, due to an increase in expenses arising from prior-year insurance claims and increased reserves for future claims.

For the Mobile Health Services segment, cost of revenues (exclusive of depreciation and amortization) in the three months ended September 30, 2025 amounted to $17.1 million, down 69.2% from $55.5 million in the three months ended September 30, 2024.

Cost of revenues as a percentage of revenues increased to 82.6% from 61.2% in the prior year period, due to the decline in Mobile Health Services revenues, driven by the wind-down of migrant-related projects and lower margins from the early-stage care gap closure business.

For the Transportation Services segment, cost of revenues (exclusive of depreciation and amortization) in both the three months ended June 30, 2025 and 2024 amounted to $34.2 million.

Cost of revenues as a percentage of revenues decreased to 69.0% from 71.0% in the prior year quarter, as revenues increased while cost of revenues remained essentially unchanged.

Total compensation increased by 15.0% year-over-year, reflecting increased field headcount and temporary increases in the effective hourly wage for certain shifts in some of the Company’s markets, as the Company aggressively expands its staff in order to reduce its reliance on subcontractors.

Costs for subcontractors declined by 44.9% when compared to last year’s first quarter, reflecting a planned reduction in the number of ambulance trips that were completed

by subcontractors in instances where the Company previously did not have sufficient personnel capacity to provide the requested services.

For the Transportation Services segment, cost of revenues (exclusive of depreciation and amortization) in the three months ended September 30, 2025 amounted to $35.6 million, up 6.9% from $33.3 million in the three months ended September 30, 2024.

Cost of revenues as a percentage of revenues increased to 71.1% from 69.4% in the prior year quarter, despite the revenue increase, due to increased compensation and higher vehicle costs.

Total compensation increased by 15.0% year-over-year, reflecting increased field headcount and temporary increases in the effective hourly wage for certain shifts in

some of the Company’s markets, as the Company aggressively expands its staff in order to reduce its reliance on subcontractors.

Costs for subcontractors declined by 38.1% when compared to last year’s third quarter, reflecting a planned reduction in the number of ambulance trips that were completed by subcontractors in instances where the Company previously did not have sufficient personnel capacity to provide the requested services.

Vehicle costs were driven higher partly due to increased insurance costs arising from prior period claims and increased reserves for future claims.

Operating expenses

For the three months ended June 30, 2025, the Company recorded $42.9 million of operating expenses compared to $45.7 million for the three months ended June 30, 2024, a decrease of 6.1%.

As a percentage of revenue, operating expenses increased from 27.7% in the second quarter of 2024 to 53.4% in the second quarter of 2025, reflecting the decrease in revenues described above.

The decrease of $2.8 million in operating expenses related to a $5.1 million decrease in travel-related expenses, all due to the ongoing wind-down of the Mobile Health Services segment’s migrant-related projects.

This decline was partially offset by an increase of $1.8 million in total compensation as well as a net $0.5 million increase spread across a variety of other operating expense categories.

The Company anticipates that operating expenses will continue to decline as certain ongoing cost-containment efforts take hold.

For the Mobile Health Services segment, operating expenses in the three months ended June 30, 2025 were $10.6 million, down 32.9% from $15.8 million in the three months ended June 30, 2024.

Operating expenses as a percentage of revenues increased to 34.4% in the second quarter of 2025, from 13.5% in the second quarter of 2024, reflecting the drop in Mobile Health Services revenues in relation to the ongoing wind-down of migrant-related projects in New York.

For the Transportation Services segment, operating expenses in both the three months ended June 30, 2025 and 2024 were $16.1 million.

Operating expenses as a percentage of revenues decreased slightly, to 32.5% for the three months ended June 30, 2025 from 33.4% in the three months ended June 30, 2024, due to the increased revenues in the current year period.

For the Corporate segment, which represents primarily shared services that are not contained within the entities included in either the Mobile Health Services or Transportation Services segments, operating expenses in the three months ended June 30, 2025 were $16.2 million, up 17.4% from $13.8 million in the three months ended June 30, 2024, as higher stock compensation costs and professional fees outweighed a decline in subcontractor expenses and insurance costs.

Corporate expenses amounted to approximately 20.1% of total consolidated revenues in the second quarter of 2025, compared to 8.4% in the second quarter of 2024, reflecting the decline in total consolidated revenues.

For the three months ended September 30, 2025, the Company recorded $60.1 million of operating expenses compared to $39.8 million for the three months ended September 30, 2024, an increase of 51.0%.

As a percentage of revenue, operating expenses increased from 28.7% in the third quarter of 2024 to 84.9% in the third quarter of 2025, reflecting the decrease in revenues described above, combined with the increase in operating expenses.

The increase of $20.3 million in operating expenses related primarily to several impairment charges for various intangible assets, including a $6.5 million impairment of the carrying value of the customer relationships for the Company’s Rapid Temps entity, an $8.7 million impairment of the goodwill related to the Rapid Temps entity, and a $1.5 million impairment of the carrying value of trade credits the Company had received in lieu of cash payment from a Mobile Health customer in a prior year period.

In addition, a $5.0 million increase in total compensation and a net $1.6 million increase spread across a variety of other operating expense categories were partially offset by a $3.0 million decrease in travel-related expenses due to the ongoing wind-down of the Mobile Health Services segment’s migrant-related projects.

The Company anticipates that operating expenses will decline as certain ongoing cost-containment efforts take hold.

For the Mobile Health Services segment, operating expenses in the three months ended September 30, 2025 were $26.2 million, up 98.5% from $13.2 million in the three months ended September 30, 2024, reflecting increased investments made in the Company’s nascent care gap closure business and the impairments described above.

Operating expenses as a percentage of revenues increased to 126.6% in the third quarter of 2025, from 14.6% in the third quarter of 2024, reflecting the significant drop in Mobile Health Services revenues in relation to the ongoing wind-down of migrant-related projects in New York.

For the Transportation Services segment, operating expenses in the three months ended September 30, 2025 were $15.6 million, up 5.4% from $14.8 million in the three months ended September 30, 2024.

Operating expenses as a percentage of revenues increased slightly, to 31.1% for the three months ended September 30, 2025 from 30.8% in the three months ended September 30, 2024.

For the Corporate segment, which represents primarily shared services that are not contained within the entities included in either the Mobile Health Services or Transportation Services segments, operating expenses in the three months ended September 30, 2025 were $18.3 million, up 55.1% from $11.8 million in the three months ended September 30, 2024, as higher stock compensation costs, insurance costs and professional fees outweighed a decline in subcontractor expenses.

Corporate expenses amounted to approximately 25.8% of total consolidated revenues in the third quarter of 2025, compared to 8.5% in the third quarter of 2024, reflecting the increased expenses and the decline in total consolidated revenues.

Interest expense, net

For both the three months ended June 30, 2025 and 2024, the Company recorded $0.5 million of interest expense, net.

Interest expenses on borrowings under the Prior Revolving Facility outweighed interest earned on balances in the Company’s interest-bearing accounts in both of the three month periods ended June 30, 2025 and 2024.

Change in fair value of contingent liability

During the three months ended June 30, 2025, the Company did not record a gain or loss for the change in fair value of contingent consideration.

During the three months ended June 30, 2024, the Company recorded a loss for the change in fair value of contingent consideration of $0.3 million.

During the three months ended September 30, 2025, the Company recorded a $0.2 million interest expense, net compared to a $0.5 million interest expense, net in three months ended September 30, 2024.

Loss on change in fair value of contingent consideration

During the three months ended September 30, 2025, the Company recorded a $1,052,394 loss on the change in fair value of contingent consideration.

During the three months ended September 30, 2024, the Company recorded a loss for the change in fair value of contingent consideration of $44,520.

Loss on equity method investments

During the three months ended June 30, 2025, the Company recorded a loss on equity method investments of $38,817, representing its share of the losses incurred by an entity in which the Company has a minority interest.

During the three months ended June 30, 2024, the Company recorded a loss on equity method investments of $64,014.

During the three months ended June 30, 2025, the Company recorded other income of $0.1 million, compared to other income of $0.3 million in the three months ended June 30, 2024.

During the three months ended September 30, 2025, the Company recorded a loss on equity method investments of

$27,035, representing its share of the losses incurred by an entity in which the Company has a minority interest.

During the three months ended September 30, 2024, the Company recorded a loss on equity method investments of $82,742.

Other income (expense)

During the three months ended September 30, 2025, the Company recorded other income of $0.1 million, compared to other expense of $0.5 million in the three months ended September 30, 2024.

Benefit from (provision for) income taxes

During the three months ended June 30, 2025, the Company recorded an income tax benefit of $4.6 million, compared to an income tax provision of $3.7 million in the three months ended June 30, 2024.

The increased tax expense in the 2024

period was due to the recording of higher pretax income in the 2024 period, as well as increased state and local taxes in the jurisdictions in which the Company did business in the 2024 period.

During the three months ended September 30, 2025, the Company recorded an income tax benefit of $13.5 million, compared to an income tax provision of $4.5 million in the three months ended September 30, 2024.

The tax benefit in the current year period reflects the recording of a pretax loss, as compared to pretax income in the 2024 period.

Net loss attributable to noncontrolling interests

For the three months ended June 30, 2025, the Company had net loss attributable to noncontrolling interests of approximately $2.1 million, compared to net loss attributable to noncontrolling interests of approximately $0.7 million for the three months ended June 30, 2024.

Comparison of the Six Months Ended June 30, 2025 and 2024

Six Months Ended June 30, Change

For the three months ended September 30, 2025, the Company had net loss attributable to noncontrolling interests of approximately $1.9 million, compared to net loss attributable to noncontrolling interests of approximately $1.0 million for the three months ended September 30, 2024.

Comparison of the Nine Months Ended September 30, 2025 and 2024

Nine Months Ended September 30, Change

$ in Millions 2025 2024

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Sales, advertising and marketing 1.1 0.4 % 1.1 0.2 % — — %

Finite-lived intangible asset impairment 8.0 3.2 % — — % 8.0 100.0 %

Goodwill impairment 8.7 3.5 % — — % 8.7 100.0 %

Total expenses 320.8 129.7 % 459.5 92.7 % (138.7) (30.2) %

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Interest expense, net (1.1) (0.4) % (1.4) (0.3) % 0.3 21.4 %

Change in fair value of contingent liability — — % (0.3) (0.1) % 0.3 100.0 %

Loss on change in fair value of contingent consideration (1.1) (0.4) % (0.4) (0.1) % (0.7) (175.0) %

Loss on equity method investments (0.1) (0.1) % (0.2) — % 0.1 50.0 %

(Loss) gain on disposal of fixed assets — — % 0.1 — % (0.1) (100.0) %

Other (expense) income (0.1) (0.1) % 0.1 — % (0.2) (200.0) %

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and Subsidiaries $ (48.3) (19.5) % $ 23.2 4.7 % $ (71.5) (308.2) %

For the six months ended June 30, 2025, total revenues were $176.5 million, a decrease of $180.5 million, or 50.6%, compared to the six months ended June 30, 2024.

For the nine months ended September 30, 2025, total revenues were $247.3 million, a decrease of $248.4 million, or 50.1%, compared to the nine months ended September 30, 2024.

Mobile Health Services

For the six months ended June 30, 2025, Mobile Health Services revenues were $76.0 million, a decrease of $184.7 million, or 70.8%, compared to the six months ended June 30, 2024.

For the nine months ended September 30, 2025, Mobile Health Services revenues were $96.7 million, a decrease of $254.6 million, or 72.5%, compared to the nine months ended September 30, 2024.

The decline in revenues was due to the ongoing wind-down of migrant-related services, which had ramped up sharply in the third quarter of 2023 and peaked in the first quarter of 2024.

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The wind-down of all services under such contract was completed in the fourth quarter of 2024.

The wind-down of the remaining migrant-related services under other contracts is nearly complete and the Company expects that the revenues from any remaining migrant-related projects will be relatively insignificant in 2026.

Transportation Services

For the six months ended June 30, 2025, Transportation Services revenues were $100.5 million, an increase of $4.1 million, or 4.3%, compared to the six months ended June 30, 2024.

For the nine months ended September 30, 2025, Transportation Services revenues were $150.6 million, an increase of $6.2 million, or 4.3%, compared to the nine months ended September 30, 2024.

This increase was due to a 2.2% increase in U.S.

trip volumes, to 146,728 trips in the six months ended June 30, 2025, from 143,699 trips for the six months ended June 30, 2024.

trip volumes, to 218,269 trips in the nine months ended September 30, 2025, from 213,475 trips for the nine months ended September 30, 2024.

The increase in trip volumes was due to a combination of growth in the Company’s customer base in certain core markets and increased volumes with existing customers.

Our average trip price decreased slightly, to $394 in the six months ended June 30, 2025, from $396 in the six months ended June 30, 2024.

The decline in the average trip price in the 2025 period reflected a shift in mix toward lower-priced transports when compared to the same period in 2024 in some of the Company’s markets, particularly in the first quarter of the year.

Our average trip price increased slightly, to $400 in the nine months ended September 30, 2025, from $399 in the nine months ended September 30, 2024.

Cost of revenues

For the six months ended June 30, 2025, total cost of revenues (exclusive of depreciation and amortization) decreased by 48.6% compared to the six months ended June 30, 2024, while revenues decreased by approximately 50.6%.

Cost of revenues as a percentage of revenues increased to 68.1% in the six months ended June 30, 2025 from 65.5% in the six months ended June 30, 2024.

Total cost of revenues in the six months ended June 30, 2025 decreased by $113.7 million compared to the same period in 2024.

This decrease was primarily attributable to a $16.5 million decrease in total compensation, a $62.4 million decline in subcontracted labor costs and a $23.3 million decline in medical and related supplies, all of which were driven by the Mobile Health Services segment, due to the ongoing wind-down of migrant-related projects during the quarter;

a $2.7 million decrease in vehicle costs;

a $2.0 million decline in travel-related costs for field employees;

and a $6.8 million net decrease in other cost of revenues categories.

For the Mobile Health Services segment, cost of revenues (exclusive of depreciation and amortization) in the six months ended June 30, 2025 amounted to $52.1 million, down 68.9% from $167.7 million in the six months ended June 30, 2024.

For the nine months ended September 30, 2025, total cost of revenues (exclusive of depreciation and amortization) decreased by 46.4% compared to the nine months ended September 30, 2024, while revenues decreased by approximately 50.1%.

Cost of revenues as a percentage of revenues increased to 69.9% in the nine months ended September 30, 2025 from 65.1% in the nine months ended September 30, 2024.

Total cost of revenues in the nine months ended September 30, 2025 decreased by $149.7 million compared to the same period in 2024.

This decrease was primarily attributable to a $23.5 million decrease in total compensation, an $87.1 million decline in subcontracted labor costs and a $28.1 million decline in medical and related supplies, all of which were driven by the Mobile Health Services segment, due to the ongoing wind-down of migrant-related projects during the quarter, a $1.9 million decline in travel-related costs for field employees, and a $9.1 million net decrease in other cost of revenues categories.

For the Mobile Health Services segment, cost of revenues (exclusive of depreciation and amortization) in the nine months ended September 30, 2025 amounted to $69.2 million, down 69.0% from $223.2 million in the nine months ended September 30, 2024.

Cost of revenues as a percentage of revenues increased to 71.6% from 63.5% in the prior year period, due to the decline in Mobile Health Services revenues, driven by the wind-down of migrant-related projects, and lower margins from the early-stage care gap closure business.

For the Transportation Services segment, cost of revenues (exclusive of depreciation and amortization) in the six months ended June 30, 2025 amounted to $68.1 million, up 3.0% from $66.1 million in the six months ended June 30, 2024.

Cost of revenues as a percentage of revenues decreased to 67.8% from 68.6% in the prior year quarter, as the increase in revenues outpaced the increase in cost of revenues.

Total compensation increased by 14.8% year-over-year, reflecting increased field headcount and temporary increases in the effective hourly wage for certain shifts in some of the Company’s markets, as the Company aggressively expands its staff in order to reduce its reliance on subcontractors.

Costs for subcontractors declined by 39.3% when compared to last year’s first half, reflecting a planned reduction in the number of

ambulance trips that were completed by subcontractors in instances where the Company previously did not have sufficient personnel capacity to provide the requested services.

For the Transportation Services segment, cost of revenues (exclusive of depreciation and amortization) in the nine months ended September 30, 2025 amounted to $103.7 million, up 4.3% from $99.4 million in the nine months ended September 30, 2024.

Cost of revenues as a percentage of revenues increased only slightly to 68.9% from 68.8% in the prior year period, as the increase in revenues was in line with the increase in cost of revenues.

Total compensation increased by 10.0% year-over-year, reflecting increased field headcount and temporary increases in the effective hourly wage for certain

shifts in some of the Company’s markets, as the Company aggressively expands its staff in order to reduce its reliance on subcontractors.

Costs for subcontractors declined by 38.9% when compared to the first nine months of last year, reflecting a planned reduction in the number of ambulance trips that were completed by subcontractors in instances where the Company previously did not have sufficient personnel capacity to provide the requested services.

Operating expenses

For the six months ended June 30, 2025, the Company recorded $87.8 million of operating expenses compared to $97.1 million for the six months ended June 30, 2024, a decrease of 9.6%.

As a percentage of revenue, operating expenses increased from 27.2% in the first half of 2024 to 49.7% in the first half of 2025, reflecting the decrease in revenues described above.

The decrease of $9.3 million in operating expenses related to a $12.5 million decrease in travel-related expenses, due to the ongoing wind-down of the Mobile Health Services segment’s migrant-related projects.

This decline was partially offset by a $2.5 million increase in total compensation and a net $0.7 million increase spread across a variety of other operating expense categories.

The Company anticipates that operating expenses will continue to decline as certain ongoing cost-containment efforts take hold.

For the Mobile Health Services segment, operating expenses in the six months ended June 30, 2025 were $22.1 million, down 36.3% from $34.7 million in the six months ended June 30, 2024.

Operating expenses as a percentage of revenues increased to 29.1% in the second quarter of 2025, from 13.3% in the second quarter of 2024, reflecting the drop in Mobile Health Services revenues in relation to the ongoing wind-down of migrant-related projects in New York.

For the Transportation Services segment, operating expenses in the six months ended June 30, 2025 were $31.8 million, up 1.6% from $31.3 million in the six months ended June 30, 2024.

Operating expenses as a percentage of revenues decreased to 31.6% for the six months ended June 30, 2025 from 32.5% in the six months ended June 30, 2024, due to the increased revenues in the current year period.

For the Corporate segment, which represents primarily shared services that are not contained within the entities included in either the Mobile Health Services or Transportation Services segments, operating expenses in the six months ended June 30, 2025 were $33.9 million, up 9.0% from $31.1 million in the six months ended June 30, 2024, as higher stock compensation costs outweighed a decline in subcontractor expenses and professional fees.

Corporate expenses amounted to approximately 19.2% of total consolidated revenues in the first half of 2025, compared to 8.7% in the first half of 2024, reflecting the decline in total consolidated revenues.

For the nine months ended September 30, 2025, the Company recorded $147.9 million of operating expenses compared to $136.9 million for the nine months ended September 30, 2024, an increase of 8.0%.

As a percentage of revenue, operating expenses increased from 27.6% in the first nine months of 2024 to 59.8% in the first nine months of 2025, primarily reflecting the decrease in revenues described above.

The increase of $11.0 million in operating expenses related to a $7.5 million increase in total compensation, a total of $16.7 million in impairment charges for intangible assets and goodwill in the third quarter of 2025 as described above, and a $2.6 million increase in professional fees due primarily to ongoing legal matters, which outweighed a $15.4 million decrease in travel-related expenses due to the ongoing wind-down of the Mobile Health Services segment’s migrant-related projects and a net $0.4 million decrease spread across a variety of other operating expense categories.

The Company anticipates that operating expenses will decline as certain ongoing cost-containment efforts take hold.

For the Mobile Health Services segment, operating expenses in the nine months ended September 30, 2025 were $48.3 million, up 0.8% from $47.9 million in the nine months ended September 30, 2024.

Operating expenses as a percentage of revenues increased to 49.9% in the nine months ended September 30, 2025, from 13.6% in the nine months ended September 30, 2024, reflecting the drop in Mobile Health Services revenues in relation to the ongoing wind-down of migrant-related projects in New York and the impairment described above.

For the Transportation Services segment, operating expenses in the nine months ended September 30, 2025 were $47.5 million, up 3.0% from $46.1 million in the nine months ended September 30, 2024.

Operating expenses as a percentage of revenues decreased to 31.5% for the nine months ended September 30, 2025 from 31.9% in the nine months ended September 30, 2024, due to the increased revenues in the current year period.

For the Corporate segment, which represents primarily shared services that are not contained within the entities included in either the Mobile Health Services or Transportation Services segments, operating expenses in the nine months ended September 30, 2025 were $52.1 million, up 21.4% from $42.9 million in the nine months ended September 30, 2024, reflecting higher total compensation and insurance and increased professional fees.

Corporate expenses amounted to approximately 21.1% of total consolidated revenues in the nine months ended September 30, 2025, compared to 8.7% in the nine months ended September 30, 2024, reflecting both the increase in absolute dollar expenses and the decline in total consolidated revenues.

Interest expense, net

For both the six months ended June 30, 2025 and 2024, the Company recorded $0.9 million of interest expense, net.

Interest expenses on borrowings under the Prior Revolving Facility outweighed interest earned on balances in the Company’s interest-bearing accounts in both of the six month periods ended June 30, 2025 and 2024.

Change in fair value of contingent liability

During the six months ended June 30, 2025, the Company did not record a gain or loss for the change in fair value of contingent consideration.

During the six months ended June 30, 2024, the Company recorded a loss for the change in fair value of contingent consideration of $0.3 million.

For the nine months ended September 30, 2025, the Company recorded $1.1 million of interest expense, net, compared to $1.4 million in the nine months ended September 30, 2024.

Interest expenses on borrowings under the Prior Revolving Facility outweighed interest earned on balances in the Company’s interest-bearing accounts in both of the nine month periods ended September 30, 2025 and 2024.

However, net interest expense for the 2025 period was lower than in the 2024 period, reflecting the repayments of the amounts outstanding under the Prior Revolving Facility in August 2025.

Loss on change in fair value of contingent consideration

During the nine months ended September 30, 2025, the Company recorded a $1.1 million loss for the change in fair value of contingent consideration.

During the nine months ended September 30, 2024, the Company recorded a loss for the change in fair value of contingent consideration of $0.4 million.

Loss on equity method investments

During the six months ended June 30, 2025, the Company recorded a loss on equity method investments of $0.1 million, representing its share of the losses incurred by an entity in which the Company has a minority interest.

During the six months ended June 30, 2024, the Company also recorded a loss on equity method investments of $0.1 million.

(Loss) gain on disposal of fixed assets

During the six months ended June 30, 2025, the Company recorded a loss on the disposal of fixed assets of $33,215, compared to a gain on the disposal of fixed assets of $65,398 during the six months ended June 30, 2024.

During the nine months ended September 30, 2025, the Company recorded a loss on equity method investments of $0.1 million, representing its share of the losses incurred by an entity in which the Company has a minority interest.

During the nine months ended September 30, 2024, the Company recorded a loss on equity method investments of $0.2 million.

Other (expense) income

During the six months ended June 30, 2025, the Company recorded other expense of $0.2 million, compared to other income of $0.5 million in the six months ended June 30, 2024.

During the nine months ended September 30, 2025, the Company recorded other expense of $0.1 million, compared to other income of $0.1 million in the nine months ended September 30, 2024.

Benefit from (provision for) income taxes

During the six months ended June 30, 2025, the Company recorded an income tax benefit of $8.4 million, compared to an income tax provision of $8.8 million in the six months ended June 30, 2024.

During the nine months ended September 30, 2025, the Company recorded an income tax benefit of $21.9 million, compared to an income tax provision of $13.3 million in the nine months ended September 30, 2024.

The recording of a tax benefit in the current period compared to a tax provision in the prior year period is due to the recording of a pretax loss in the current period compared to pretax income in the prior year period.

Net loss attributable to noncontrolling interests

For the six months ended June 30, 2025, the Company had net loss attributable to noncontrolling interests of approximately $3.8 million, compared to net loss attributable to noncontrolling interests of approximately $1.3 million for the six months ended June 30, 2024.

For the nine months ended September 30, 2025, the Company had net loss attributable to noncontrolling interests of approximately $5.7 million, compared to net loss attributable to noncontrolling interests of approximately $2.2 million for the nine months ended September 30, 2024.

Liquidity and Capital Resources

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The Company has also funded these activities through operating cash flows.

Despite the fact that the Company generated operating cash flow for the six months ended June 30, 2025, operating cash flows are not always sufficient to meet immediate obligations arising from current operations.

Despite the fact that the Company generated operating cash flow for the nine months ended September 30, 2025, operating cash flows are not always sufficient to meet immediate obligations arising from current operations.

For example, as the business has grown, the Company’s expenditures for human capital and supplies have expanded accordingly, and the timing of the payments for payroll and to associated vendors, compared to the timing of receipts of cash from customers, frequently results in the need to use existing cash balances to fund working capital needs.

During the second half of 2023 and during the year ended December 31, 2024, as a greater proportion of the Company’s overall revenues were generated through services provided to municipal customers with long payment cycles, and expenditures made by the Company to allow for the provision of these services were substantial, operating cash flows were not sufficient to meet these demands for working capital, leading to a marked decline in the Company’s cash balances, which improved in the second half of 2024, as invoices were collected.

As more of these invoices are collected, the Company expects cash flows to be sufficient for near term working capital needs.

As more of these invoices are collected, the Company expects cash flows to be sufficient for near term working capital needs, even if further operating losses are generated.

The Company’s future working capital needs depend on many factors, including the overall growth of the Company and the various payment terms that are negotiated with customers and vendors.

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If the Company’s growth rate is higher than is currently anticipated, resulting in greater-than-anticipated capital requirements, the Company might need to, or choose to, raise additional capital through debt or equity financings.

This last factor was evident at different times during 2023 and 2024, leading to a draw down in the Company’s credit line during the fourth quarter of 2023 and during the first quarter of 2024, as described below.

This last factor was evident at different times during 2023 and 2024, leading to a draw down in the Company’s credit line during the fourth quarter of 2023 and during the first quarter of 2024.

On November 1, 2022, the Company entered into the Prior Credit Agreement, which provided for the Prior Revolving Facility in the initial aggregate principal amount of $90.0 million.

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The initial applicable margins were 1.25% for an adjusted term SOFR loan and 0.25% for a base rate loan and were updated based on the Company’s consolidated net leverage ratio.

The Prior Revolving Facility was scheduled to mature on November 1, 2027 and was secured by a first-priority lien on substantially all of the Company’s present and future personal assets and intangible assets.

The Prior Revolving Facility was scheduled to mature on November 1, 2027 and was secured by a first-priority lien on substantially all of the

Company’s present and future personal assets and intangible assets.

The Prior Revolving Facility was subject to certain financial covenants, such as a net leverage ratio and interest coverage ratio, as defined in the Prior Credit Agreement.

There was a total of $30.0 million outstanding under the Prior Revolving Facility as of June 30, 2025.

On August 1, 2025, the

Company repaid these outstanding balances, and there were no amounts outstanding as of the date of the filing of this Quarterly Report on Form 10-Q.

On August 1, 2025, the Company repaid the outstanding balances, and there were no amounts outstanding related to the Prior Revolving Facility as of the date of the filing of this Quarterly Report on Form 10-Q.

On August 7, 2025, the Company amended and restated the Prior Credit Agreement.

The Credit Agreement provides for a revolving credit facility up to an aggregate principal amount of $55.0 million and borrowings thereunder are subject to a borrowing base formula based on eligible receivables as described therein.

The Credit Agreement provides for the Revolving Facility of up to an aggregate principal amount of $55.0 million, and borrowings thereunder are subject to a borrowing base formula based on eligible receivables as described therein.

The Revolving Facility includes the ability for the Company to request an increase to the commitment by an additional amount of up to $20.0 million, though neither Lender nor any other lender is obligated to provide any such additional commitment.

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The applicable margin for an adjusted term SOFR loan is 2.00% and the applicable margin for a base rate loan is 1.00%.

The Revolving Facility matures on November 1, 2027, the five-year anniversary of the original closing date of the Revolving Facility.

The Revolving Facility matures on November 1, 2027, the five-year anniversary of the original closing date of the Prior Credit Agreement.

The Credit Agreement is secured by a first-priority lien on substantially all of the Company’s present and future personal assets and intangible assets.

The Credit Agreement is subject to a certain minimum liquidity financial covenant, as defined in the Credit Agreement.

There was a total of $0 outstanding under the Revolving Facility as of the date of this Quarterly Report on Form 10-Q.

There were no amounts outstanding under the Revolving Facility as of the date of this Quarterly Report on Form 10-Q.

Considering the foregoing, the Company anticipates that its existing balances of cash and cash equivalents, future expected cash flows generated from its operations and amounts available under the Revolving Facility will be sufficient to satisfy operating requirements for at least the next twelve months.

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Capital Resources

Working capital as of June 30, 2025 and December 31, 2024 was as follows:

June 30 December 31 Change

Working capital as of September 30, 2025 and December 31, 2024 was as follows:

September 30 December 31 Change

$ in Millions 2025 2024

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Total working capital $ 116.6 $ 182.7 $ (66.1) (36.2) %

As of June 30, 2025, available cash totaled $104.2 million, which represented an increase of $14.9 million compared to December 31, 2024, as increased collections leading to a decline in accounts receivable during the six months ended June 30, 2025, which outweighed a net loss and cash used for share repurchases and an acquisition.

As of June 30, 2025, working capital amounted to $136.5 million, which represented a decrease of $46.2 million compared to December 31, 2024, as a large decline in accounts receivable outweighed an increase in cash and a decline in accounts payable and accrued liabilities.

Current assets declined by $67.9 million, due to the large drop in accounts receivable, which outweighed a decline in current liabilities in the six months ended June 30, 2025, due to lower accounts payable and a reduction in accrued liabilities, reflecting lower invoices and accrued liabilities in the current period for certain expenses, such as subcontracted labor.

Cash flows as of the six months ended June 30, 2025 and 2024 were as follows:

Six Months Ended June 30, Change

As of September 30, 2025, available cash totaled $73.4 million, which represented a decrease of $15.9 million compared to December 31, 2024, as a net loss and repayment of $30.0 million in outstanding borrowings under the Prior Credit Agreement outweighed the impact of increased collections, which led to a decline in accounts receivable during the nine months ended September 30, 2025.

As of September 30, 2025, working capital amounted to $116.6 million, which represented a decrease of $66.1 million compared to December 31, 2024, as a large decline in accounts receivable and a decline in cash outweighed a decline in accounts payable.

Current assets declined by $114.3 million, due primarily to the large drop in accounts receivable, as well as the declines in cash, slightly offset by an increase in other current assets and a small increase in prepaid expenses.

Cash flows as of the nine months ended September 30, 2025 and 2024 were as follows:

Nine Months Ended September 30, Change

$ in Millions 2025 2024

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Effect of exchange rate changes 0.3 0.5 (0.2) (40.0) %

Net increase in cash $ 1.2 $ 13.6 $ (12.4) (91.2) %

Net (decrease) increase in cash $ (29.7) $ 36.4 $ (66.1) (181.6) %

Operating Activities

During the six months ended June 30, 2025, operating activities provided $43.2 million of cash, despite a net loss of $24.3 million.

Non-cash charges amounted to $11.0 million and included $9.7 million of stock compensation expense, $5.0 million in depreciation of property and equipment and right-of-use assets, $2.7 million from amortization of intangible assets and bad debt expense of $2.5 million.

During the nine months ended September 30, 2025, operating activities provided $44.9 million of cash, despite a net loss of $54.0 million.

Non-cash charges amounted to $25.0 million and included $14.3 million of stock compensation expense, $8.7 million goodwill impairment, $8.0 million of finite-lived asset impairment, $7.5 million in depreciation of property and equipment and right-of-use assets, $4.2 million from amortization of intangible assets, bad debt expense of $3.7 million, loss on change in fair value of contingent consideration of $1.0 million and a loss on equity method investment of $0.1 million.

These were partially offset by $22.3 million in deferred taxes and $0.2 million in accretion of discount related to restricted investments.

Changes in assets and liabilities resulted in approximately $56.5 million in positive operating cash flow, as an $86.2 million decrease in accounts receivable, reflecting collections of invoices from large municipal customers, a $1.0 million decrease in other assets and a $0.3 increase in operating lease liabilities and right-of-use assets were partially offset by a $7.5 million decrease in accrued liabilities, a $18.2 million decrease in accounts payable and a $5.3 million increase in prepaid expenses and other current assets.

During the six months ended June 30, 2024, operating activities provided $26.2 million of cash, aided by net income of $16.5 million.

Non-cash charges amounted to $16.2 million and included $5.1 million in depreciation of property and equipment and right-of-use assets, $3.3 million from amortization of intangible assets, $6.6 million of stock compensation expense, bad debt expense of $2.8 million, a loss of $0.1 million from an investment that is accounted for under the equity method and a change in the fair value of contingent consideration of $0.3 million.

Changes in assets and liabilities resulted in approximately $73.9 million in positive operating cash flow, as a $100.7 million decrease in accounts receivable, reflecting collections of older invoices from large municipal customers, a $1.0 million decrease in other assets, and a $0.4 million increase in operating lease liabilities and right-of-use assets were partially offset by a $20.2 million decrease in accounts payable, $5.4 million increase in prepaid expenses and other current assets and a $2.6 million decrease in accrued liabilities.

During the nine months ended September 30, 2024, operating activities provided $57.4 million of cash, aided by net income of $21.0 million.

Non-cash charges amounted to $21.5 million and included $9.7 million of stock compensation expense, $7.7 million in depreciation of property and equipment and right-of-use assets, $4.9 million from amortization of intangible assets, bad debt expense of $3.8 million, a change in the fair value of contingent consideration of $0.4 million, and a loss of $0.2 million from an investment that is accounted for under the equity method.

These were partially offset by $5.2 million in deferred taxes.

Changes in assets and liabilities resulted in approximately $6.5 million in negative operating cash flow, as a $1.6 million increase in accounts receivable, primarily driven by an increased amount of business with municipalities, which tend to have longer payment cycles, and a $28.0 million decrease in accrued liabilities due to payment of certain payables were partially offset by a $10.8 million increase in accounts payable and a $12.3 million decrease in prepaid expenses and other current assets.

Changes in assets and liabilities resulted in approximately $14.9 million in positive operating cash flow, as a $19.8 million decline in accounts receivable, reflecting collections of invoices from large municipal customers, a $12.3 million decrease in prepaid expenses and other current assets, and a $15.3 million increase in accounts payable outweighed a $31.5 million decline in accrued liabilities and a $1.0 million increase in other assets.

Investing Activities

During the six months ended June 30, 2025, investing activities used $27.1 million of cash and restricted cash and consisted of the purchase of restricted investments of $22.2 million, the acquisition of a business of $3.6 million, the purchase of property and equipment totaling approximately $2.2 million, and the acquisition of intangibles of $1.6 million, partially offset by $2.3 million in proceeds from the sale of restricted investments and $0.2 million in cash proceeds from the disposal of property and equipment.

During the six months ended June 30, 2024, investing activities used $3.6 million of cash and consisted of the acquisition of property and equipment totaling approximately $2.0 million and the acquisition of intangibles in the amount of $1.6 million.

During the nine months ended September 30, 2025, investing activities used $26.0 million of cash and restricted cash and consisted of the purchase of restricted investments of $24.7 million, the acquisition of a business of $3.6 million, the purchase of property and equipment totaling approximately $3.0 million, and the acquisition of intangibles of $2.3 million, partially offset by $7.4 million in proceeds from the sale of restricted investments and $0.2 million in cash proceeds from the disposal of property and equipment.

During the nine months ended September 30, 2024, investing activities used $5.2 million of cash and consisted of the purchase of property and equipment totaling approximately $2.9 million, the acquisition of intangibles in the amount of $2.2 million and the purchase of an equity method investment in the amount of $0.3 million, partially offset by $0.2 million in cash proceeds from the disposal of property and equipment.

Financing Activities

During the six months ended June 30, 2025, financing activities used $15.9 million of cash, as the Company spent approximately $10.8 million on its share repurchase program, made $2.7 million in payments under the terms of a finance lease, paid $1.3 million in taxes related to shares withheld for employee taxes, made $0.8 million in payments due to seller and made $0.3 million in earnout payments on contingent liabilities.

During the six months ended June 30, 2024, financing activities used $8.9 million of cash, as $45.0 million in proceeds from the Prior Revolving Facility were mostly offset by $40.0 million in repayments of the Prior Revolving Facility.

In addition, the Company spent approximately $9.8 million on its share repurchase program, $2.0 million in payments under the terms of a finance lease, $1.6 million in earnout payments on contingent liabilities, $0.2 million in dividends paid to a noncontrolling interest and $0.3 million in taxes related to shares withheld for employee taxes.

Future minimum annual maturities of notes payable as of June 30, 2025 are as follows (in thousands):

During the nine months ended September 30, 2025, financing activities used $48.9 million of cash, as the Company spent $30.0 million on the repayment of the Prior Revolving Facility, spent approximately $10.8 million on its share repurchase program, made $4.0 million in payments under the terms of a finance lease, made $1.9 million in earnout payments on contingent liabilities, paid $1.4 million in taxes related to shares withheld for employee taxes, made $0.9 million in

payments due to seller, and made $0.2 million in distributions to noncontrolling interests, partially offset by $0.3 million in proceeds from notes payable.

During the nine months ended September 30, 2024, financing activities used $16.3 million of cash, as $45.0 million in proceeds from the Prior Revolving Facility were mostly offset by $40.0 million in repayments of the Prior Revolving Facility.

In addition, the Company spent approximately $11.1 million on its share repurchase program, $3.1 million in payments under the terms of a finance lease, $3.0 million in payments of amounts due to seller, $1.8 million in the acquisition of noncontrolling interest , $1.6 million in earnout payments on contingent liabilities, $0.3 million in dividends paid to a noncontrolling interest, and $0.4 million in taxes related to shares withheld for employee taxes.

Future minimum annual maturities of notes payable as of September 30, 2025 are as follows (in thousands):

Notes Payable

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Long-term portion of notes payable $ 195.7

Future minimum lease payments under finance leases as of June 30, 2025 are as follows (in millions):

Future minimum lease payments under finance leases as of September 30, 2025 are as follows (in millions):

Finance Leases

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Present value of future minimum lease payments $ 16.4

Future minimum lease payments under operating leases as of June 30, 2025 are as follows (in millions):

Future minimum lease payments under operating leases as of September 30, 2025 are as follows (in millions):

2025, remaining $ 1.4

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The Company has therefore determined that it is the primary economic beneficiary of the PCs and appropriately consolidates them as VIEs.

Net loss for the Company’s VIEs was $2,392,937 and $81,978 for the three months ended June 30, 2025 and 2024, respectively, and $4,104,448 and $357,883 for the six months ended June 30, 2025 and 2024, respectively.

Total assets, exclusive of intercompany assets, amounted to $6,759,053 and $3,122,209 as of June 30, 2025 and December 31, 2024, respectively.

Total liabilities, exclusive of intercompany liabilities, were $11,543,036 and $3,801,744 as of June 30, 2025 and December 31, 2024, respectively.

The Company’s VIEs’ total stockholders’ deficit was $4,783,983 and $679,535 as of June 30, 2025 and December 31, 2024, respectively.

Net loss for the Company’s VIEs was $2,111,569 and $67,785 for the three months ended September 30, 2025 and 2024, respectively, and $6,216,018 and $425,668 for the nine months ended September 30, 2025 and 2024, respectively.

Total assets, exclusive of intercompany assets, amounted to $6,985,326 and $3,122,209 as of September 30, 2025 and December 31, 2024, respectively.

Total liabilities, exclusive of intercompany liabilities, were $13,880,879 and $3,801,744 as of September 30, 2025 and December 31, 2024, respectively.

The Company’s VIEs’ total stockholders’ deficit was $6,895,553 and $679,535 as of September 30, 2025 and December 31, 2024, respectively.

Self-Insurance Reserves

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On a regular basis, the liabilities are evaluated for appropriateness with claims reserve valuations.

To limit exposure to some risks, the Company maintains insurance coverage with varying limits and retentions, including stop-loss insurance coverage for workers’ compensation, healthcare benefits and auto liability.

Fair Value of Financial Instruments

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Unobservable inputs which are supported by little or no market activity and values determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant judgment or estimation.

Fair value measurements discussed herein are based upon certain market assumptions and pertinent information available to management as of June 30, 2025 and December 31, 2024.

For certain financial instruments, including cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, restricted cash, accounts payable and accrued

expenses, and due to seller, the carrying amounts approximate their fair values as it is short term in nature.

Fair value measurements discussed herein are based upon certain market assumptions and pertinent information available to management as of September 30, 2025 and December 31, 2024.

For certain financial instruments, including cash, accounts receivable, prepaid expenses, other current assets, restricted cash, accounts payable, accrued expenses, and due to seller, the carrying amounts approximate their fair values as it is short term in nature.

The notes payable are presented at their carrying value, which, based on borrowing rates currently available to the Company for loans with similar terms, approximates its fair values.

The Company’s restricted cash equivalents and restricted investments are valued at quoted market prices in active markets for similar assets, which the Company receives from the financial institutions that hold such investments on its behalf.

The Company’s cash equivalents, restricted cash equivalents and restricted investments are valued at quoted market prices in active markets for similar assets, which the Company receives from the financial institutions that hold such investments on its behalf.

This fair value determination is categorized as Level 1 within the fair value hierarchy.

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Accounts receivable are net of insurance provider contractual allowances, which are estimated at the time of billing based on contractual terms or other arrangements.

The Company maintains an allowance for credit losses for accounts receivable, net which is recorded as an offset to accounts receivable, net and changes in this allowance are recorded within general and administrative expenses in the unaudited Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income.

The carrying amount of accounts receivable represents the maximum credit risk exposure of these assets.

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As of January 1, 2025, the Company held a beginning balance in its allowance for credit losses on accounts receivable of $5,873,942.

The Company recognized an additional provision for credit losses and write offs of $1,238,462 and $(928,106), respectively, for the three months ended June 30, 2025, and $2,504,678 and $(2,286,032), respectively, for the six months ended June 30, 2025.

The Company’s balance in its allowance for credit losses amounted to $6,092,588 as of June 30, 2025.

The Company recognized an additional provision for credit losses and write offs of $1,255,945 and $(1,649,986), respectively, for the three months ended September 30, 2025, and $3,760,623 and $(3,936,018), respectively, for the nine months ended September 30, 2025.

The Company’s balance in its allowance for credit losses amounted to $5,698,547 as of September 30, 2025.

Business Combinations

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(iii) current, historical or projected deterioration of our financial performance;

or (iv) a sustained decrease in our market capitalization, as indicated by our publicly quoted share price, below our net book value.

or (iv) a sustained decrease in our market capitalization, as indicated by our publicly quoted share price, below our net carrying value.

Revenue Recognition

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For these services, revenues are recorded net of estimated contractual allowances for claims subject to contracts with responsible paying entities.

The Company estimates contractual allowance at the time of billing

based on contractual terms, historical collections or other arrangements.

The Company estimates contractual allowance at the time of billing based on contractual terms, historical collections or other arrangements.

The Company also estimates the amount unbilled at month end and recognizes such amounts as revenue, based on available data and customer history.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis