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. 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 six months ended June 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 gain (loss) for the three months ended June 30, 2025 and 2024 were $927,462 and $33,973, respectively, and $1,423,000 and $(106,161) for the six months ended June 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 consolidated financial statements. A hypothetical 10% change in the applicable foreign exchange rate during the six months ended June 30, 2025 would have resulted in a change in total revenues of approximately 1.5% and 0.9% for the three and six months ended June 30, 2025, respectively, and a change in total assets of approximately 0.3% for the six months ended June 30, 2025. Concentrations of Risk Our financial instruments that are exposed to concentrations of credit risk consist primarily of cash, cash equivalents, restricted cash and accounts receivable. Although we deposit our cash, cash equivalents and restricted cash with multiple financial institutions in the United States and in foreign countries, our deposits, at times, may exceed federally insured 63 Table of Contents limits. We do not believe we are exposed to significant credit risk due to the financial strength of the depository institutions in which the funds are held. With respect to accounts receivable, the Company had two customers that accounted for approximately 28% and 25%, respectively, of net accounts receivable as of June 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 one customer that accounted for approximately 34% of revenues for the three months ended June 30, 2025, and two customers that accounted for approximately 37% and 31%, respectively, of revenues for the three months ended June 30, 2024. The Company had one customer that accounted for approximately 42% of revenues for the six months ended June 30, 2025, and two customers each accounted for approximately 35% of revenues for the six months ended June 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.