What changed in this filing

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Item 1. Financial Statements

2024-10-22 compared with 2024-07-23 · 96 added, 73 removed, 405 unchanged (29% of the section changed)

4 unchanged sentences

(Amounts in thousands, except share amounts) As of

September 30,

2024 December 31,

1 unchanged sentence

Cash and cash equivalents $ 656,900 $ 245,449

Accounts receivable and unbilled, net (includes $ 2.7 million and $ 2.4 million with related parties at June 30, 2024 and December 31, 2023, respectively)

Accounts receivable and unbilled, net (includes $ 9.9 million and $ 2.4 million with related parties at September 30, 2024 and December 31, 2023, respectively)

311,466 298,400

Prepaid expenses and other current assets (includes $ 0.3 million with related parties at June 30, 2024 and December 31, 2023)

Prepaid expenses and other current assets (includes $ 0.3 million with related parties at December 31, 2023)

64,229 49,979

9 unchanged sentences

Current liabilities:

Accounts payable (includes $ 0.4 million and $ 3.1 million with related parties at June 30, 2024 and December 31, 2023, respectively)

Accounts payable (includes $ 0.2 million and $ 3.1 million with related parties at September 30, 2024 and December 31, 2023, respectively)

$ 26,201 $ 31,869

Accrued expenses 306,868 292,961

Advanced billings (includes $ 10.8 million and $ 10.1 million with related parties at June 30, 2024 and December 31, 2023, respectively)

Advanced billings (includes $ 12.8 million and $ 10.1 million with related parties at September 30, 2024 and December 31, 2023, respectively)

670,939 559,860

9 unchanged sentences

5,000,000 shares authorized;

no shares issued and outstanding at June 30, 2024 and December 31, 2023

no shares issued and outstanding at September 30, 2024 and December 31, 2023

Common stock - $ 0.01 par-value;

250,000,000 shares authorized at June 30, 2024 and December 31, 2023;

31,001,549 and 30,752,292 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively

Treasury stock - 70,073 and 70,573 shares at June 30, 2024 and December 31, 2023, respectively

250,000,000 shares authorized at September 30, 2024 and December 31, 2023;

31,081,601 and 30,752,292 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively

Treasury stock - 70,073 and 70,573 shares at September 30, 2024 and December 31, 2023, respectively

( 12,235 ) ( 12,322 )

Additional paid-in capital 836,903 802,681

Accumulated deficit ( 30,790 ) ( 221,645 )

Retained earnings (Accumulated deficit) 65,636 ( 221,645 )

Accumulated other comprehensive loss ( 9,176 ) ( 10,072 )

6 unchanged sentences

(Amounts in thousands, except per share amounts) Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

Revenue, net (includes $ 11.2 million and $ 13.3 million with related parties for the three months ended June 30, 2024 and 2023, respectively, and $ 24.0 million and $ 29.1 million with related parties for the six months ended June 30, 2024 and 2023, respectively)

Revenue, net (includes $ 15.5 million with related parties for the three months ended September 30, 2024 and 2023, and $ 39.5 million and $ 44.6 million with related parties for the nine months ended September 30, 2024 and 2023, respectively)

$ 533,317 $ 492,499 $ 1,572,465 $ 1,387,441

26 unchanged sentences

(Amounts in thousands) Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

Net income $ 96,426 $ 70,550 $ 287,368 $ 204,512

Other comprehensive (loss) income

Other comprehensive income (loss)

Foreign currency translation adjustments, net of taxes 3,413 ( 1,676 ) 896 ( 478 )

22 unchanged sentences

BALANCE — June 30, 2023 $ 306 $ ( 12,322 ) $ 785,292 $ ( 371,022 ) $ ( 11,194 ) $ 391,060

Net income 70,550 70,550

Foreign currency translation ( 1,676 ) ( 1,676 )

Stock-based compensation expense 5,007 5,007

Stock options exercised 1 5,695 5,696

Repurchases of common stock 275 275

BALANCE — September 30, 2023 $ 307 $ ( 12,322 ) $ 795,994 $ ( 300,197 ) $ ( 12,870 ) $ 470,912

Treasury Stock

Capital Accumulated Deficit Accumulated

Capital Retained Earnings (Accumulated Deficit) Accumulated

Comprehensive

11 unchanged sentences

BALANCE — June 30, 2024 $ 310 $ ( 12,235 ) $ 818,903 $ ( 30,790 ) $ ( 12,589 ) $ 763,599

Net income 96,426 96,426

Foreign currency translation 3,413 3,413

Stock-based compensation expense 11,727 11,727

Stock options exercised 1 6,273 6,274

BALANCE — September 30, 2024 $ 311 $ ( 12,235 ) $ 836,903 $ 65,636 $ ( 9,176 ) $ 881,439

See notes to condensed consolidated financial statements.

2 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Amounts in thousands) Six Months Ended

(Amounts in thousands) Nine Months Ended

September 30,

CASH FLOWS FROM OPERATING ACTIVITIES:

37 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

June 30, 2024

September 30, 2024

(1) Basis of Presentation

15 unchanged sentences

In the fourth quarter of 2022, the Board approved a stock repurchase program of up to $ 500.0 million.

The Company did no t execute any share repurchases during the three and six months ended June 30, 2024.

During the three and six months ended June 30, 2023, the Company repurchased 126,281 shares and 781,068 shares for $ 23.9 million and $ 144.0 million, respectively.

As of June 30, 2024, the Company has remaining authorization of $ 308.8 million under the repurchase program.

The Company did not execute any share repurchases during the three and nine months ended September 30, 2024.

The Company did not execute any share repurchases during the three months ended September 30, 2023.

During the nine months ended September 30, 2023, the Company repurchased 781,068 shares for $ 144.0 million.

As of September 30, 2024, the Company has remaining authorization of $ 308.8 million under the repurchase program.

Repurchases under the share repurchase program are executed in the open market or negotiated transactions under trading plans put in place pursuant to Rule 10b5-1.

5 unchanged sentences

The guidance is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted.

The Company is currently evaluating the effect this standard will have on its consolidated financial statements and related disclosures.

The Company expects to adopt the standard in the fourth quarter of 2024 by adding additional segment related disclosures to the consolidated financial statement footnotes.

In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740):

8 unchanged sentences

The Company does not compute diluted EPS in cases where the inclusion of such additional shares would be anti-dilutive in effect.

The following table sets forth the computation of basic and diluted earnings per share for the three and six months ended June 30, 2024 and 2023 (in thousands, except for earnings per share):

The following table sets forth the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2024 and 2023 (in thousands, except for earnings per share):

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

12 unchanged sentences

Net income per common share—Diluted $ 3.01 $ 2.22 $ 8.96 $ 6.42

During the six months ended June 30, 2024, the Company had (in thousands) 4.8 stock options that were excluded due to the exercise price exceeding the average fair value of the Company’s common stock during the period.

During the three and six months ended June 30, 2023, the Company had (in thousands) 16.7 stock options that were excluded due to the exercise price exceeding the average fair value of the Company’s common stock during the period.

During the three and nine months ended September 30, 2024, the Company had (in thousands) 5.6 and 80.2 stock options, respectively, that were excluded due to the exercise price exceeding the average fair value of the Company’s common stock during the period.

During the nine months ended September 30, 2023, the Company had (in thousands) 0.6 stock options that were excluded due to the exercise price exceeding the average fair value of the Company’s common stock during the period.

(3) Fair Value Measurements

6 unchanged sentences

The fair value of financial instruments such as cash and cash equivalents, accounts receivable and unbilled, net, accounts payable, accrued expenses and advanced billings approximate their carrying amounts due to their short term maturities.

The Company does not have material recurring fair value measurements as of June 30, 2024.

There were no material transfers between Level 1, Level 2 or Level 3 during the three and six months ended June 30, 2024 or June 30, 2023.

The Company does not have material recurring fair value measurements as of September 30, 2024.

There were no material transfers between Level 1, Level 2 or Level 3 during the three and nine months ended September 30, 2024 and September 30, 2023.

(4) Contract Assets and Contract Liabilities

6 unchanged sentences

Accounts receivable and unbilled, net consisted of the following (in thousands):

September 30,

2024 December 31,

6 unchanged sentences

Advanced billings consisted of the following (in thousands):

September 30,

2024 December 31,

Advanced billings $ 670,939 $ 559,860

As of June 30, 2024 and December 31, 2023, the Company had approximately $ 3.2 billion and $ 2.9 billion of performance obligations remaining to be performed for active projects.

As of September 30, 2024 and December 31, 2023, the Company had approximately $ 3.5 billion and $ 2.9 billion of performance obligations remaining to be performed for active projects.

(5) Intangible Assets, Net

Intangible assets, net consisted of the following (in thousands):

September 30,

2024 December 31,

8 unchanged sentences

Total intangible assets, net $ 34,727 $ 35,809

As of June 30, 2024, estimated amortization expense of the Company’s intangible assets for each of the next five years is as follows (in thousands):

As of September 30, 2024, estimated amortization expense of the Company’s intangible assets for each of the next five years is as follows (in thousands):

Remainder of 2024

1 unchanged sentence

Accrued expenses consisted of the following (in thousands):

September 30,

2024 December 31,

13 unchanged sentences

The Loan Agreement contains certain events of default, including, among others, non-payment of principal or interest and breach of the covenants.

As of June 30, 2024 and December 31, 2023, there were less than $ 0.1 million in letters of credit outstanding related to certain operating lease obligations, which are secured by the Credit Facility.

The Company enters into leases for real estate and equipment.

4 unchanged sentences

The components of lease expense were as follows (in thousands):

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

2 unchanged sentences

Supplemental cash flow information related to the leases was as follows (in thousands):

Six Months Ended June 30,

Nine Months Ended September 30,

Cash paid for amounts included in the measurement of lease liabilities:

3 unchanged sentences

Supplemental balance sheet information related to the leases was as follows (in thousands):

September 30,

2024 December 31,

13 unchanged sentences

Operating leases 5.7 % 5.6 %

Lease payments due related to lease liabilities as of June 30, 2024 were as follows (in thousands):

Lease payments due related to lease liabilities as of September 30, 2024 were as follows (in thousands):

Related Party

13 unchanged sentences

Total $ 92,048 $ 59,845 $ 151,893

As of September 30, 2024, we have additional leases with contractual obligations, which have not yet commenced , including future payments of $ 4.8 million.

(9) Shareholder’s Equity and Stock-Based Compensation

The Company granted 2,991 awards to employees under the 2016 Incentive Award Plan during the six months ended June 30, 2024, consisting of 2,491 RSU having five year vesting schedules and 500 RSU having four year vesting schedules.

The Company granted an additional 5,718 stock option awards to non-employee directors under the 2016 Incentive Award Plan during the six months ended June 30, 2024.

The Company granted 191,776 awards to employees under the 2016 Incentive Award Plan during the nine months ended September 30, 2024, consisting of 116,626 RSU and 24,650 stock option awards having five year vesting schedules, 500 RSU having four year vesting schedules and 50,000 stock option awards that vested upon issuance.

The Company granted an additional 6,542 stock option awards to non-employee directors under the 2016 Incentive Award Plan during the nine months ended September 30, 2024.

These awards are scheduled to vest on the earlier of (a) the day immediately preceding the date of the first annual meeting following the date of grant and (b) the first anniversary of the date of grant, subject to the non-employee director continuing in service through the applicable vesting date.

1 unchanged sentence

The following table sets forth the Company’s stock option activity:

Six Months Ended June 30, 2024

Nine Months Ended September 30, 2024

Stock Options Weighted Average

7 unchanged sentences

The following table sets forth the Company’s RSA/RSU activity:

Six Months Ended

June 30, 2024

Nine Months Ended

September 30, 2024

Outstanding and unvested - beginning of period 390,998

4 unchanged sentences

Stock-based compensation expense recognized in the condensed consolidated statements of operations related to all outstanding stock-based compensation awards is summarized below (in thousands):

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

3 unchanged sentences

(10) Income Taxes

The Company’s effective income tax rate was 20.0 % and 19.4 % for the three months ended June 30, 2024 and 2023, respectively.

The Company's effective income tax rate was 14.5 % and 17.2 % for the six months ended June 30, 2024 and 2023, respectively.

The Company’s effective income tax rate for the three months ended June 30, 2024 and the six months ended June 30, 2024 varied from the U.S.

The Company’s effective income tax rate was 18.8 % and 15.2 % for the three months ended September 30, 2024 and 2023, respectively.

The Company's effective income tax rate was 16.0 % and 16.5 % for the nine months ended September 30, 2024 and 2023, respectively.

The Company’s effective income tax rate for the three months ended September 30, 2024 and the nine months ended September 30, 2024 varied from the U.S.

statutory rate of 21 % primarily due to the impact of the state taxes, which was favorably offset by excess tax benefits recognized from share-based compensation and tax benefits related to Foreign Derived Intangible Income (FDII).

2 unchanged sentences

The Company is involved in legal proceedings from time to time in the ordinary course of its business, including employment claims and claims related to other business transactions.

The Company cannot predict with certainty the outcome of such proceedings, but it believes that adequate reserves have been recorded and losses already recognized with respect to such proceedings, which were immaterial as of June 30, 2024 and December 31, 2023.

There is a reasonable possibility that a loss exceeding amounts already recognized may be incurred related to these actions;

however, the Company believes that such potential losses were immaterial as of June 30, 2024.

however, the Company believes that such potential losses were immaterial as of September 30, 2024.

Purchase Commitments

The Company has several minimum purchase commitments for project related supplies totaling $ 14.9 million as of June 30, 2024.

The Company has several minimum purchase commitments for project related supplies totaling $ 15.9 million as of September 30, 2024.

In return for the commitment, Medpace receives preferential pricing.

3 unchanged sentences

The Company periodically extends short term loans or advances to employees, typically upon commencement of employment.

Total receivables as a result of these employee advances of $ 0.3 million at June 30, 2024 and December 31, 2023 and are included in the Prepaid expenses and other current assets and Other assets line items of the condensed consolidated balance sheets, respectively, depending on the contractual repayment date.

Total receivables as a result of these employee advances of $ 0.3 million at September 30, 2024 and December 31, 2023, and are included in the Prepaid expenses and other current assets and Other assets line items of the condensed consolidated balance sheets, respectively, depending on the contractual repayment date.

Service Agreement

3 unchanged sentences

Subsequently, the Company and LIB have entered into several task orders for the Company to perform clinical trial related services.

The Company recognized total revenue from LIB of $ 3.9 million and $ 9.7 million during the three months ended June 30, 2024 and 2023, respectively, and $ 10.4 million and $ 23.0 million during the six months ended June 30, 2024 and 2023, respectively, in the Company’s condensed consolidated statements of operations.

As of June 30, 2024 and December 31, 2023, respectively, the Company had Advanced billings from LIB of $ 6.4 million and $ 7.6 million in the condensed consolidated balance sheets.

In addition, as of June 30, 2024 and December 31, 2023, respectively, the Company had Accounts receivable and unbilled, net from LIB of $ 0.4 million and $ 0.5 million in the condensed consolidated balance sheets.

The Company recognized total revenue from LIB of $ 8.3 million and $ 10.1 million during the three months ended September 30, 2024 and 2023, respectively, and $ 18.7 million and $ 33.1 million during the nine months ended September 30, 2024 and 2023, respectively, in the Company’s condensed consolidated statements of operations.

As of September 30, 2024 and December 31, 2023, respectively, the Company had Advanced billings from LIB of $ 7.2 million and $ 7.6 million in the condensed consolidated balance sheets.

In addition, as of September 30, 2024 and December 31, 2023, respectively, the Company had Accounts receivable and unbilled, net from LIB of $ 8.3 million and $ 0.5 million in the condensed consolidated balance sheets.

CinRX Pharma, subsidiaries and affiliates (“CinRx”)

1 unchanged sentence

The Company and CinRx have entered into several task orders for the Company to perform clinical trial related services.

The Company recognized total revenue from CinRx of $ 7.3 million and $ 3.6 million during the three months ended June 30, 2024 and 2023, respectively, and $ 13.6 million and $ 6.1 million during the six months ended June 30, 2024 and 2023, respectively, in the Company’s condensed consolidated statements of operations.

As of June 30, 2024 and December 31, 2023, respectively, the Company had Advanced billings from CinRx of $ 4.4 million and $ 2.5 million in the condensed consolidated balance sheets.

As of June 30, 2024 and December 31, 2023 the Company had Accounts receivable and unbilled, net from CinRx of $ 2.3 million and $ 1.9 million, respectively, in the condensed consolidated balance sheets.

In addition, as of June 30, 2024 and December 31, 2023 the Company had Prepaid expenses and other current assets with CinRx of $ 0.3 million and $ 0.2 million, respectively, in the condensed consolidated balance sheets.

The Company recognized total revenue from CinRx of $ 7.2 million and $ 5.3 million during the three months ended September 30, 2024 and 2023, respectively, and $ 20.8 million and $ 11.4 million during the nine months ended September 30, 2024 and 2023, respectively, in the Company’s condensed consolidated statements of operations.

As of September 30, 2024 and December 31, 2023, respectively, the Company had Advanced billings from CinRx of $ 5.6 million and $ 2.5 million in the condensed consolidated balance sheets.

As of September 30, 2024 and December 31, 2023 the Company had Accounts receivable and unbilled, net from CinRx of $ 1.6 million and $ 1.9 million, respectively, in the condensed consolidated balance sheets.

In addition, as of September 30, 2024 and December 31, 2023 the Company had Prepaid expenses and other current assets with CinRx of less than $ 0.1 million and $ 0.2 million, respectively, in the condensed consolidated balance sheets.

The Summit Hotel (“The Summit”)

1 unchanged sentence

Medpace incurs travel lodging and meeting expenses at The Summit.

Medpace incurred expenses of $ 0.1 million during the three months ended June 30, 2024 and 2023, and $ 0.2 million during the six months ended June 30, 2024 and 2023 at The Summit.

Medpace incurred expenses of $ 0.1 million during the three months ended September 30, 2024 and 2023, and $ 0.3 million during the nine months ended September 30, 2024 and 2023 at The Summit.

Leased Real Estate

6 unchanged sentences

The Company has determined that the lease is an operating lease.

Operating lease cost recognized for the three months ended June 30, 2024 and 2023 was $ 0.7 million.

Operating lease cost recognized for the six months ended June 30, 2024 and 2023 was $ 1.4 million and $ 1.3 million, respectively.

Operating lease cost recognized for the three months ended September 30, 2024 and 2023 was $ 0.7 million.

Operating lease cost recognized for the nine months ended September 30, 2024 and 2023 was $ 2.1 million and $ 2.0 million, respectively.

The operating lease cost was allocated between Total direct costs and Selling, general and administrative in the condensed consolidated statements of operations.

The Operating lease right-of-use assets at June 30, 2024 and December 31, 2023 were $ 18.5 million and $ 19.3 million, respectively, in the condensed consolidated balance sheets.

The current and long-term portions of the lease liabilities at June 30, 2024 were $ 1.6 million and $ 17.3 million, respectively, and were recognized in Other current liabilities and Operating lease liabilities in the condensed consolidated balance sheets.

The Operating lease right-of-use assets at September 30, 2024 and December 31, 2023 were $ 18.1 million and $ 19.3 million, respectively, in the condensed consolidated balance sheets.

The current and long-term portions of the lease liabilities at September 30, 2024 were $ 1.6 million and $ 16.9 million, respectively, and were recognized in Other current liabilities and Operating lease liabilities in the condensed consolidated balance sheets.

The current and long-term portions of the lease liabilities at December 31, 2023 were $ 1.5 million and $ 18.1 million, respectively, and were recognized in Other current liabilities and Operating lease liabilities in the condensed consolidated balance sheets.

6 unchanged sentences

The Company has determined that the lease is an operating lease.

Operating lease cost recognized for the three months ended June 30, 2024 and 2023 was $ 1.4 million.

Operating lease cost recognized for the six months ended June 30, 2024 and 2023 was $ 2.8 million.

Operating lease cost recognized for the three months ended September 30, 2024 and 2023 was $ 1.5 million.

Operating lease cost recognized for the nine months ended September 30, 2024 and 2023 was $ 4.3 million.

The operating lease cost was allocated between Total direct costs and Selling, general and administrative in the condensed consolidated statements of operations.

The Operating lease right-of-use assets at June 30, 2024 and December 31, 2023 were $ 51.0 million and $ 51.9 million, respectively, in the condensed consolidated balance sheets.

The current and long-term portions of the lease liabilities at June 30, 2024 were $ 1.4 million and $ 62.8 million, respectively, and were recognized in Other current liabilities and Operating lease liabilities in the condensed consolidated balance sheets.

The Operating lease right-of-use assets at September 30, 2024 and December 31, 2023 were $ 50.6 million and $ 51.9 million, respectively, in the condensed consolidated balance sheets.

The current and long-term portions of the lease liabilities at September 30, 2024 were $ 1.5 million and $ 62.4 million, respectively, and were recognized in Other current liabilities and Operating lease liabilities in the condensed consolidated balance sheets.

The current and long-term portions of the lease liabilities at December 31, 2023 were $ 1.3 million and $ 63.5 million, respectively and were recognized in Other current liabilities and Operating lease liabilities in the condensed consolidated balance sheets.

4 unchanged sentences

The Company has determined that the lease is an operating lease.

Operating lease cost recognized for the three months ended June 30, 2024 and 2023 was $ 0.7 million.

Operating lease cost recognized for the six months ended June 30, 2024 and 2023 was $ 1.3 million.

Operating lease cost recognized for the three months ended September 30, 2024 and 2023 was $ 0.6 million.

Operating lease cost recognized for the nine months ended September 30, 2024 and 2023 was $ 1.9 million.

The operating lease cost was allocated between Total direct costs and Selling, general and administrative in the condensed consolidated statements of operations.

The Operating lease right-of-use assets at June 30, 2024 and December 31, 2023 were $ 7.5 million and $ 8.5 million, respectively, in the condensed consolidated balance sheets.

The current and long-term portions of the lease liabilities at June 30, 2024 were $ 2.1 million and $ 5.3 million, respectively, and were recognized in Other current liabilities and Operating lease liabilities in the condensed consolidated balance sheets.

The Operating lease right-of-use assets at September 30, 2024 and December 31, 2023 were $ 6.9 million and $ 8.5 million, respectively, in the condensed consolidated balance sheets.

The current and long-term portions of the lease liabilities at September 30, 2024 were $ 2.2 million and $ 4.8 million, respectively, and were recognized in Other current liabilities and Operating lease liabilities in the condensed consolidated balance sheets.

The current and long-term portions of the lease liabilities at December 31, 2023 were $ 2.1 million and $ 6.4 million, respectively, and were recognized in Other current liabilities and Operating lease liabilities in the condensed consolidated balance sheets.

6 unchanged sentences

The Company has determined that the lease is an operating lease.

Operating lease cost recognized for the three months ended June 30, 2024 and 2023 was $ 0.8 million and $ 0.2 million.

Operating lease cost recognized for the six months ended June 30, 2024 and 2023 was $ 1.5 million and $ 0.5 million.

Operating lease cost recognized for the three months ended September 30, 2024 and 2023 was $ 0.7 million and $ 0.3 million, respectively.

Operating lease cost recognized for the nine months ended September 30, 2024 and 2023 was $ 2.2 million and $ 0.8 million, respectively.

The operating lease cost was allocated between Total direct costs and Selling, general and administrative in the condensed consolidated statements of operations.

The Operating lease right-of-use assets at June 30, 2024 and December 31, 2023 were $ 2.0 million and $ 3.4 million, respectively, in the condensed consolidated balance sheets.

The current and long-term portions of the lease liabilities at June 30, 2024 were $ 0.9 million and $ 2.0 million, respectively, and were recognized in Other current liabilities and Operating lease liabilities in the condensed consolidated balance sheets.

The Operating lease right-of-use assets at September 30, 2024 and December 31, 2023 were $ 1.4 million and $ 3.4 million, respectively, in the condensed consolidated balance sheets.

The current and long-term portions of the lease liabilities at September 30, 2024 were $ 0.9 million and $ 1.8 million, respectively, and were recognized in Other current liabilities and Operating lease liabilities in the condensed consolidated balance sheets.

The current and long-term portions of the lease liabilities at December 31, 2023 were $ 0.9 million and $ 2.5 million, respectively, and were recognized in Other current liabilities and Operating lease liabilities in the condensed consolidated balance sheets.

4 unchanged sentences

The Aircraft Management Company also makes the private aviation charter aircraft available to third parties.

The Company incurred travel expenses of $ 0.7 million and $ 0.4 million during the three months ended June 30, 2024 and 2023, respectively, and $ 1.0 million and $ 0.8 million during the six months ended June 30, 2024 and 2023, respectively, related to these travel services.

The Company incurred travel expenses of $ 0.4 million and $ 0.7 million during the three months ended September 30, 2024 and 2023, respectively, and $ 1.4 million and $ 1.5 million during the nine months ended September 30, 2024 and 2023, respectively, related to these travel services.

These travel expenses are recorded in Selling, general and administrative in the Company’s condensed consolidated statements of operations.

As of June 30, 2024 and December 31, 2023, the Company had Accounts payable to the Aircraft Management Company of $ 0.3 million and $ 0.4 million, respectively, in the condensed consolidated balance sheets.

As of September 30, 2024 and December 31, 2023, the Company had Accounts payable to the Aircraft Management Company of $ 0.1 million and $ 0.4 million, respectively, in the condensed consolidated balance sheets.

(13) Entity Wide Disclosures

2 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

1 unchanged sentence

Oncology $ 164,917 $ 149,326 $ 483,067 $ 438,366

Other 112,432 101,055 220,832 188,159

Metabolic 124,733 103,118 334,674 277,818

Other 107,371 106,160 328,203 294,319

Cardiology 55,814 44,360 172,150 142,107

3 unchanged sentences

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 1. Financial Statements