DocGo Inc. 10-Q

Item 3. Quantitative and Qualitative Disclosures about Market Risk We are exposed to certain market risks, including those relating to changes in interest rates and foreign currency exchange rates. We do not enter into instruments for trading or speculative purposes. 66 Table of Contents Interest Rate Risk We are subject to interest rate risk relating to our cash equivalents and borrowings under our Credit Agreement, which bear interest at a per annum rate equal to (i) at our option, (x) the base rate or (y) the adjusted term SOFR rate, plus (ii) the applicable margin. 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 applicable interest rate is set for a specific term when amounts are drawn down under the terms of the Revolving Facility, and future draws, if any, under the Credit Agreement may be subject to a higher or lower interest rate, depending upon, among other things, the then-prevailing SOFR rate. To date, the Company has not utilized interest rate hedging or other strategies in an attempt to mitigate our interest rate risk. A hypothetical 10% change in interest rates during the nine months ended September 30, 2025 would have had a neutral net impact on our unaudited Condensed Consolidated Financial Statements, as changes in amounts paid for interest expense would have offset changes in interest income earned on cash balances. Foreign Exchange Risk We operate our business primarily within the U.S. and currently execute a majority of our transactions in U.S. dollars. However, we are exposed to limited foreign exchange risk as a result of our U.K. operations. The foreign exchange (loss) gain for the three months ended September 30, 2025 and 2024 were $(319,851) and $934,774, respectively, and $1,103,149 and $828,613 for the nine months ended September 30, 2025 and 2024, respectively. We have not utilized hedging or other strategies with respect to such foreign exchange exposure. This limited foreign currency translation risk is not expected to have a material impact on our unaudited Condensed Consolidated Financial Statements. A hypothetical 10% change in the applicable foreign exchange rate during the nine months ended September 30, 2025 would have resulted in a change in total revenues of approximately 1.8% and 1.2% for the three and nine months ended September 30, 2025, respectively, and a change in total assets of approximately 0.3% for the nine months ended September 30, 2025. Concentrations of Risk The Company’s financial instruments that are exposed to concentrations of credit risks primarily consist of cash, cash equivalents, restricted cash, restricted cash equivalents, restricted investments, and accounts receivable. The Company attempts to minimize concentration of credit risk by maintaining its cash and restricted cash with institutions of sound financial quality. At times, cash balances may exceed limits federally insured by the Federal Deposit Insurance Corporation. The Company believes it is not exposed to significant credit risk due to the financial strength of the depository institutions in which the funds are held. Most of the Company’s cash equivalents, restricted cash equivalents, and restricted investments are invested in U.S. treasury securities and corporate bonds, all of which have credit ratings of “A” or above. With respect to accounts receivable, the Company had two customers that accounted for approximately 21% and 19%, respectively, of net accounts receivable as of September 30, 2025, and two customers that accounted for approximately 39% and 37%, respectively, of net accounts receivable as of December 31, 2024. In terms of revenues, the Company had two customers that accounted for approximately 19% and 11%, respectively, of revenues for the three months ended September 30, 2025, and two customers that accounted for approximately 41% and 21%, respectively, of revenues for the three months ended September 30, 2024. The Company had one customer that accounted for approximately 37% of revenues for the nine months ended September 30, 2025, and two customers that accounted for approximately 36% and 31%, respectively, of revenues for the nine months ended September 30, 2024. We perform ongoing evaluations of customers’ financial condition, creditworthiness and payment performance. Based on these evaluations, we consider whether or not the accounts receivable exposure to any specific customer is within an acceptable range for that customer.