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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2024
OR
¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number: 001-39618
DocGo Inc.
(Exact Name of Registrant as Specified in Its Charter)
Delaware85-2515483
(State or Other Jurisdiction of
Incorporation or Organization)
(I.R.S. Employer
Identification Number)
35 West 35th Street, Floor 6
New York, New York
10001
(Address of Principal Executive Offices)(Zip Code)
(844) 443-6246
(Registrant’s Telephone Number, Including Area Code)

N/A
(Former Name, Former Address and Former Fiscal Year, If Changed Since Last Report)
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of Each Exchange on Which Registered
Common Stock, par value $0.0001 per shareDCGOThe Nasdaq Stock Market LLC
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
x
Accelerated filer
¨
Non-accelerated filer
¨
Smaller reporting company
¨
Emerging growth company
¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x
As of May 6, 2024, 101,565,541 shares of the registrant’s common stock, par value $0.0001 per share, were issued and outstanding.


Table of Contents
i

PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
1

DocGo Inc. and Subsidiaries
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
March 31,
2024
December 31,
2023
UnauditedAudited
ASSETS
Current assets:
Cash and cash equivalents$41,244,446 $59,286,147 
Accounts receivable, net of allowance of $6,319,441 and $6,276,454 as of March 31, 2024 and December 31, 2023, respectively
283,127,437 262,083,462 
Prepaid expenses and other current assets10,759,696 17,499,953 
Total current assets335,131,579 338,869,562 
Property and equipment, net16,315,633 16,835,484 
Intangibles, net36,764,034 37,682,928 
Goodwill47,489,759 47,539,929 
Restricted cash17,649,417 12,931,839 
Operating lease right-of-use assets9,125,733 9,580,535 
Finance lease right-of-use assets13,385,131 12,003,919 
Equity method investments470,406 553,573 
Deferred tax assets11,945,760 11,888,539 
Other assets2,407,665 2,565,649 
Total assets$490,685,117 $490,451,957 
LIABILITIES AND STOCKHOLDERS’ EQUITY  
Current liabilities:  
Accounts payable$25,628,149 $19,827,258 
Accrued liabilities70,178,256 91,340,609 
Line of credit30,000,000 25,000,000 
Notes payable, current26,367 28,131 
Due to seller7,819,147 7,823,009 
Contingent consideration19,781,737 19,792,982 
Operating lease liability, current2,835,458 2,773,020 
Finance lease liability, current3,866,929 3,534,073 
Total current liabilities160,136,043 170,119,082 
Notes payable, non-current33,726 41,586 
Operating lease liability, non-current6,720,787 7,223,941 
Finance lease liability, non-current8,718,460 7,896,392 
Total liabilities175,609,016 185,281,001 
Commitments and contingencies
Stockholders’ equity:  
Common stock ($0.0001 par value; 500,000,000 shares authorized as of March 31, 2024 and December 31, 2023; 102,961,495 and 104,055,168 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively)
10,297 10,406 
Additional paid-in-capital320,135,875 320,693,866 
Accumulated deficit(10,166,861)(21,394,310)
Accumulated other comprehensive income1,344,771 1,484,905 
Total stockholders’ equity attributable to DocGo Inc. and Subsidiaries311,324,082 300,794,867 
Noncontrolling interests3,752,019 4,376,089 
Total stockholders’ equity315,076,101 305,170,956 
Total liabilities and stockholders’ equity$490,685,117 $490,451,957 
    The accompanying notes are an integral part of these unaudited Condensed Consolidated Financial Statements.
2

DocGo Inc. and Subsidiaries
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
Three Months Ended
March 31,
20242023
Revenues, net$192,087,529 $113,002,703 
Expenses:
Cost of revenues (exclusive of depreciation and amortization, which is shown separately below)124,808,914 81,226,498 
Operating expenses:
General and administrative40,181,035 29,220,317 
Depreciation and amortization4,182,781 3,649,329 
Legal and regulatory4,313,503 3,638,321 
Technology and development2,388,919 1,863,579 
Sales, advertising and marketing337,010 307,246 
Total expenses176,212,162 119,905,290 
Income (loss) from operations15,875,367 (6,902,587)
Other income (expense):
 Interest (expense) income, net(369,008)809,172 
Change in fair value of contingent liability6,446  
Loss on equity method investments(83,167)(115,286)
Loss on remeasurement of operating and finance leases(4,697) 
Gain (loss) on disposal of fixed assets52,835 (54,839)
Other income244,607 214,880 
Total other income (expense)(152,984)853,927 
Net income (loss) before income tax provision15,722,383 (6,048,660)
(Provision for) benefit from income taxes(5,119,004)2,129,870 
Net income (loss)10,603,379 (3,918,790)
Net loss attributable to noncontrolling interests(624,070)(453,120)
Net income (loss) attributable to stockholders of DocGo Inc. and Subsidiaries11,227,449 (3,465,670)
Other comprehensive income
Foreign currency translation adjustment(140,134)243,658 
Total comprehensive income (loss)$11,087,315 $(3,222,012)
Net income (loss) per share attributable to DocGo Inc. and Subsidiaries - Basic $0.11 $(0.03)
Weighted-average shares outstanding - Basic103,818,362102,579,291
Net income (loss) per share attributable to DocGo Inc. and Subsidiaries - Diluted $0.10 $(0.03)
Weighted-average shares outstanding - Diluted108,506,435102,579,291
The accompanying notes are an integral part of these unaudited Condensed Consolidated Financial Statements.
3

DocGo Inc. and Subsidiaries
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

Common Stock
Additional
Paid-in-
Capital
Accumulated
Deficit
Accumulated
Other
Comprehensive
Loss
Noncontrolling
Interests
Total
Stockholders’
Equity
SharesAmount
Balance - December 31, 2022102,411,162$10,241 $301,451,435 $(28,972,216)$741,206 $5,696,725 $278,927,391 
Exercise of stock options96,10110 249,705 — — — 249,715 
UK Ltd. restricted stock— 167,175 — — — 167,175 
Stock-based compensation424,91142 8,181,549 — — — 8,181,591 
Health liquidation— — 70,284 — — 70,284 
Net loss attributable to noncontrolling interests— — — — (453,120)(453,120)
Foreign currency translation— — — 243,658 — 243,658 
Net loss attributable to stockholders of
DocGo Inc. and Subsidiaries
— — (3,465,670)— — (3,465,670)
Balance - March 31, 2023102,932,174$10,293 $310,049,864 $(32,367,602)$984,864 $5,243,605 $283,921,024 

Common Stock
Additional
Paid-in-
Capital
Accumulated
Deficit
Accumulated
Other
Comprehensive
Income
Noncontrolling
Interests
Total
Stockholders’
Equity
SharesAmount
Balance - December 31, 2023104,055,168$10,406 $320,693,866 $(21,394,310)$1,484,905 $4,376,089 $305,170,956 
Common stock repurchased(1,255,614)(126)(4,877,433)— — — (4,877,559)
Stock-based compensation165,68817 4,340,388 — — — 4,340,405 
Shares withheld for taxes(3,747)— (20,946)— — — (20,946)
Net loss attributable to noncontrolling interests— — — — (624,070)(624,070)
Foreign currency translation— — — (140,134)— (140,134)
Net income attributable to stockholders of
DocGo Inc. and Subsidiaries
— — 11,227,449 — — 11,227,449 
Balance - March 31, 2024102,961,495$10,297 $320,135,875 $(10,166,861)$1,344,771 $3,752,019 $315,076,101 
The accompanying notes are an integral part of these unaudited Condensed Consolidated Financial Statements.
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DocGo Inc. and Subsidiaries
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended
March 31,
20242023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)$10,603,379 $(3,918,790)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation of property and equipment1,431,308 1,482,610 
Amortization of intangible assets1,694,983 1,365,636 
Amortization of finance lease right-of-use assets1,056,490 801,083 
(Gain) loss on disposal of assets(52,835)54,839 
Deferred income tax(55,776)(1,015,555)
Loss on equity method investments83,167 115,286 
Bad debt expense1,357,621 (1,902,587)
Stock-based compensation3,988,339 8,450,016 
Loss on remeasurement of operating and finance leases4,697  
Gain on liquidation of business 70,284 
Change in fair value of contingent consideration(6,446) 
Changes in operating assets and liabilities:
Accounts receivable(22,401,596)(24,668,050)
Prepaid expenses and other current assets6,728,337 (174,059)
Other assets(62,016)274,683 
Accounts payable5,800,891 (2,581,796)
Accrued liabilities(20,810,287)(1,471,551)
Net cash used in operating activities(10,639,744)(23,117,951)
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property and equipment(951,702)(1,976,075)
Acquisition of intangibles(773,039)(1,405,444)
Acquisition of businesses 1,574,604 
Proceeds from disposal of property and equipment25,000 117,420 
Net cash used in investing activities(1,699,741)(1,689,495)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from revolving credit line45,000,000  
Repayments of revolving credit line(40,000,000) 
Repayments of notes payable(9,624)(129,370)
Due to seller(3,862)(11,494,549)
Proceeds from exercise of stock options 416,890 
Payments for taxes related to shares withheld for employee taxes(20,946) 
Common stock repurchased(4,877,559) 
Payments on obligations under finance lease(969,588)(744,030)
Net cash used in financing activities(881,579)(11,951,059)
Effect of exchange rate changes on cash and cash equivalents(103,059)168,149 
Net decrease in cash and restricted cash(13,324,123)(36,590,356)
Cash and restricted cash at beginning of period72,217,986 164,109,074 
Cash and restricted cash at end of period$58,893,863 $127,518,718 
The accompanying notes are an integral part of these unaudited Condensed Consolidated Financial Statements.
5

DocGo Inc. and Subsidiaries
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(CONTINUED)
Three Months Ended
March 31,
20242023
Supplemental disclosure of cash and non-cash transactions:
Cash paid for interest$448,057 $32,827 
Cash paid for interest on finance lease liabilities$181,883 $126,584 
Cash paid for income taxes$557,598 $40,050 
Right-of-use assets obtained in exchange for lease liabilities$2,791,964 $926,468 
Remeasurement of finance lease right-of-use asset due to lease modification$300,000 $ 
Fixed assets acquired in exchange for notes payable$ $150,079 
Supplemental non-cash investing activity:
Acquisition of business funded by acquisition payable$ $19,473,805 
Reconciliation of cash and restricted cash
Cash$41,244,446 $120,056,897 
Restricted cash17,649,417 7,461,821 
Total cash and restricted cash shown in statement of cash flows$58,893,863 $127,518,718 
The accompanying notes are an integral part of these unaudited Condensed Consolidated Financial Statements.
6

DocGo Inc. and Subsidiaries
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. Description of Organization and Business Operations
Background

On November 5, 2021, DocGo Inc., a Delaware corporation, then known as Motion Acquisition Corp. (collectively with its subsidiaries, the “Company”), consummated a business combination pursuant to that certain Agreement and Plan of Merger, dated March 8, 2021 (the “Merger Agreement”), by and among the Company, Motion Merger Sub Corp., a Delaware corporation and a direct wholly owned subsidiary of the Company (“Merger Sub”), and Ambulnz, Inc., a Delaware corporation (“Ambulnz”). The transactions contemplated by the Merger Agreement are referred to herein as the “Business Combination.” In connection with the closing of the Business Combination, the Company changed its name from Motion Acquisition Corp. to DocGo Inc.

As contemplated by the Merger Agreement and as described in the Company’s definitive proxy statement/consent solicitation/prospectus filed with the U.S. Securities and Exchange Commission (the “SEC”) on October 14, 2021, Merger Sub merged with and into Ambulnz, with Ambulnz continuing as the surviving corporation. As a result of the Business Combination, Ambulnz became a wholly owned subsidiary of the Company and each share of Series A preferred stock of Ambulnz, no par value, Class A common stock of Ambulnz, no par value, and Class B common stock of Ambulnz, no par value, was cancelled and converted into the right to receive a portion of the merger consideration issuable as common stock of the Company, par value $0.0001 (“Common Stock”), pursuant to the terms and conditions set forth in the Merger Agreement.
In connection with the Business Combination, the Company raised $158,000,000 of net proceeds. This amount consisted of (i) $43,400,000 of cash held in the Company’s trust account established in connection with its initial public offering, net of the Company’s transaction costs and underwriters’ fees of $9,600,000, and (ii) $114,600,000 of cash from the sale of shares of Common Stock to certain investors at a price of $10.00 per share in a private placement that closed concurrently with the Business Combination (the “PIPE Financing”), net of $10,400,000 in transaction costs in connection with the PIPE Financing. These transaction costs consisted of banking, legal and other professional fees, which were recorded as a reduction to additional paid-in capital.
Ambulnz was originally formed in Delaware on June 17, 2015 as Ambulnz, LLC, a limited liability company. On November 1, 2017, with an effective date of January 1, 2017, Ambulnz converted its legal structure from a limited liability company to a C-corporation and changed its name to Ambulnz, Inc. Ambulnz is the sole owner of Ambulnz Holdings, LLC (“Holdings”), which was formed in the state of Delaware on August 5, 2015 as a limited liability company. Holdings is the owner of multiple operating entities incorporated in various states in the U.S. as well as within England and Wales, U.K.
The Business
The Company is a mobile healthcare services company that uses proprietary dispatch and communication technology to help provide (i) quality mobile, in-person medical treatment directly to patients in the comfort of their homes, workplaces and other non-traditional locations and (ii) healthcare transportation in major metropolitan cities in the United States (“U.S.”) and the United Kingdom (“U.K.”).

The Company conducts business in three operating segments: Mobile Health Services, Transportation Services and Corporate. Mobile Health Services include a wide variety of healthcare services performed at homes, offices and other locations and event services such as on-site healthcare support at sporting events and concerts. This segment also provides total care management solutions to large, typically underserved, population groups primarily through arrangements with municipalities, which include healthcare services as well as ancillary services, such as shelter. Transportation Services encompass both emergency response and non-emergency transport services. Non-emergency transport services include ambulance transports and wheelchair transports. Net revenue from Transportation Services is derived from the transportation of patients based on billings to third party payors and healthcare facilities. The Company’s Corporate segment primarily represents shared services and personnel that support both the Mobile Health Services and Transportation Services segments. It contains operating expenses such as information technology costs, certain insurance costs and the compensation costs of senior and executive leadership. None of the Company’s revenues or cost of revenues are reported within the Corporate segment.
7

DocGo Inc. and Subsidiaries
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)
2. Summary of Significant Accounting Policies
Basis of Presentation
The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the U.S. (“U.S. GAAP”) and applicable rules and regulations of the SEC regarding interim financial reporting. Certain information and disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. As such, the information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Consolidated Financial Statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2023.
The Consolidated Balance Sheet as of December 31, 2023 included herein was derived from the audited financial statements as of that date but does not include all disclosures including notes required by U.S. GAAP.
Principles of Consolidation
The unaudited Condensed Consolidated Financial Statements include the accounts and operations of DocGo Inc. and its subsidiaries. All intercompany accounts and transactions are eliminated upon consolidation. Noncontrolling interests (“NCI”) on the unaudited Condensed Consolidated Financial Statements represent a portion of consolidated joint ventures and variable interest entities ("VIEs") in which the Company does not have direct equity ownership. Certain amounts in the prior periods’ unaudited Condensed Consolidated Statements of Changes in Stockholders’ Equity and Condensed Consolidated Statements of Cash Flows have been reclassified to conform to the current period presentation.
The Business Combination was accounted for as a reverse recapitalization in accordance with U.S. GAAP (the “Reverse Recapitalization”). Under this method of accounting, the Company was treated as the “acquired” company for financial reporting purposes. Accordingly, for accounting purposes, the Reverse Recapitalization was treated as the equivalent of Ambulnz stock for the net assets of the Company, accompanied by a recapitalization. The net assets of the Company are stated at historical cost, with no goodwill or other intangible assets recorded. The consolidated assets, liabilities and results of operations prior to the Reverse Recapitalization are those of Ambulnz. The shares and corresponding capital amounts and earnings per share available for common stockholders prior to the Business Combination have been retroactively restated as shares reflecting the exchange ratio (645.1452 to 1) established in the Business Combination. Further, Ambulnz was determined to be the accounting acquirer in the transaction, and as such, the acquisition is considered a business combination under Accounting Standards Codification (“ASC”) Topic 805, Business Combinations (“ASC 805”) and was accounted for using the acquisition method of accounting.
In accordance with ASC 810, Consolidation (“ASC 810”), the Company assesses whether it has a variable interest in legal entities in which it has a financial relationship and, if so, whether or not those entities are VIEs. For those entities that qualify as VIEs, ASC 810 requires the Company to determine if the Company is the primary beneficiary of the VIE, and if so, to consolidate the VIE.

The Company holds variable interests in legal entities that contract with physicians and other health professionals that provide services on behalf of the Company. These entities are considered VIEs since they do not have sufficient equity to finance their activities without additional subordinated financial support. An enterprise having a controlling financial interest in a VIE must consolidate the VIE if it is the primary beneficiary, meaning it has (1) the power to direct the activities of the VIE that most significantly impacts the VIE’s economic performance (power) and (2) the obligation to absorb losses of the VIE that potentially could be significant to the VIE or the right to receive benefits from the VIE that potentially could be significant to the VIE (benefits). The Company has the power and rights to control all activities of its VIEs and funds and absorbs all losses of its VIEs. The Company has determined that it is the primary beneficiary of its VIEs and therefore appropriately consolidates its VIEs.

Net loss for the Company's VIEs was $275,905 and $186,637 for the three months ended March 31, 2024 and 2023, respectively. The total assets amounted to $5,364,950 and $4,364,274 as of March 31, 2024 and December 31, 2023, respectively. Total liabilities were $6,088,439 and $4,811,857 as of March 31, 2024 and December 31, 2023, respectively. The Company's VIEs' total stockholders’ deficit was $723,489 and $447,583 as of March 31, 2024 and December 31, 2023, respectively.
8

DocGo Inc. and Subsidiaries
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)
Foreign Currency
The Company’s functional currency is the U.S. dollar. The functional currency of our foreign operation is the British pound. Assets and liabilities of foreign operations denominated in local currencies are translated at the spot rate in effect at the applicable reporting date, except for equity accounts, which are translated at historical rates. The unaudited Condensed Consolidated Statements of Operations and Comprehensive Income are translated at the weighted average rate of exchange during the applicable period. The resulting unrealized cumulative translation adjustment for the three months ended March 31, 2024 and 2023 were $(140,134) and $243,658, respectively.
Use of Estimates
The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and expenses; the disclosure of contingent assets and liabilities in its financial statements; and the reported amounts of expenses during the reporting period. The most significant estimates in the Company’s financial statements relate to revenue recognition related to the allowance for doubtful accounts, stock-based compensation, calculations related to the incremental borrowing rate for the Company’s lease agreements, estimates related to ongoing lease terms, software development costs, impairment of long-lived assets, goodwill and indefinite-lived intangible assets, business combinations, reserve for losses within the Company’s insurance deductibles, income taxes and deferred income tax. These estimates and assumptions are based on current facts, historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the recording of expenses that are not readily apparent from other sources.

Actual results may differ materially and adversely from these estimates. To the extent there are material differences between the estimates and actual results, the Company’s future results of operations could be adversely affected.
Self-Insurance Reserves
The Company self-insures a number of risks, including, but not limited to, workers’ compensation, general liability, auto liability and certain employee-related healthcare benefits. Standard actuarial procedures and data analysis are used to estimate the liabilities associated with these risks on an undiscounted basis. The recorded liabilities reflect the ultimate cost for claims incurred but not paid and any estimable administrative run-out expenses related to the processing of these outstanding claim payments. 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, general liability and auto liability.
Concentration of Credit Risk and Off-Balance Sheet Risk
The Company is potentially subject to concentration of credit risk with respect to its cash, cash equivalents and restricted cash, which the Company attempts to minimize by maintaining cash, cash equivalents and restricted cash with institutions of sound financial quality. At times, cash balances may exceed limits federally insured by the Federal Deposit Insurance Corporation (“FDIC”). 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. The Company has no financial instruments with off-balance sheet risk of loss.
Major Customers
The Company had one customer that accounted for approximately 39% of revenues and 34% of net accounts receivable and another customer that accounted for 32% of revenues and 46% of net accounts receivable for the three months ended March 31, 2024.
The Company had one customer that accounted for approximately 46% of revenues and 62% of net accounts receivable for the three months ended March 31, 2023.
Major Vendor

The Company had one vendor that accounted for approximately 18% and 18% of total cost for the three months ended March 31, 2024 and 2023, respectively. The Company expects to maintain this relationship with the vendor and believes the services provided by this vendor are available from alternative sources.
9

DocGo Inc. and Subsidiaries
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)
Reclassifications
Certain reclassifications of amounts previously reported have been made to the accompanying unaudited Condensed Consolidated Financial Statements to maintain consistency between periods presented. The reclassifications had no impact on previously reported net income or retained earnings.
Cash and Cash Equivalents
Cash and cash equivalents include all highly liquid investments with an original maturity of three months or less. The Company maintains most of its cash and cash equivalents with financial institutions in the U.S. The Company’s accounts at financial institutions in the U.S. are insured by the FDIC and are in excess of FDIC insured limits. The Company had cash balances of approximately $5,047,684 and $3,699,793 with foreign financial institutions on March 31, 2024 and December 31, 2023, respectively.
Restricted Cash
Cash and cash equivalents subject to contractual restrictions and not readily available are classified as restricted cash in the unaudited Condensed Consolidated Balance Sheets. Restricted cash is classified as either a current or non-current asset depending on the restriction period. The Company is required to pledge or otherwise restrict a portion of cash and cash equivalents as collateral for self-insurance exposures, transportation equipment leases and a standby letter of credit as required by its insurance carrier (see Notes 9 and 14).
The Company utilizes a combination of insurance and self-insurance programs, including a wholly owned captive insurance entity, to provide for the potential liabilities for certain risks, including workers’ compensation, automobile liability, general liability and professional liability. Liabilities associated with the risks that are retained by the Company within its high deductible limits are not discounted and are estimated, in part, by considering claims experience, exposure and severity factors and other actuarial assumptions. The Company has commercial insurance in place for catastrophic claims above its deductible limits.
ARM Insurance, Inc., a Vermont-based wholly owned captive insurance subsidiary of the Company, charges the operating subsidiaries premiums to insure the retained workers’ compensation, automobile liability, general liability and professional liability exposures. Pursuant to Vermont insurance regulations, ARM Insurance, Inc. maintains certain levels of cash and cash equivalents related to its self-insurance exposures.
The Company also maintains certain cash balances related to its insurance programs, which are held in a self-depleting trust and restricted as to withdrawal or use by the Company other than to pay or settle self-insured claims and costs. These amounts are reflected in “Restricted cash” in the accompanying unaudited Condensed Consolidated Balance Sheets.
Fair Value of Financial Instruments
ASC 820, Fair Value Measurements, provides guidance on the development and disclosure of fair value measurements. Under this accounting guidance, fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability.
The accounting guidance classifies fair value measurements in one of the following three categories for disclosure purposes:
Level 1:    Quoted prices in active markets for identical assets or liabilities.
Level 2:    Inputs other than Level 1 prices for similar assets or liabilities that are directly or indirectly observable in the marketplace.
Level 3:    Unobservable inputs that 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.
10

DocGo Inc. and Subsidiaries
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)
Fair value measurements discussed herein are based upon certain market assumptions and pertinent information available to management as of March 31, 2024 and December 31, 2023. For certain financial instruments, including cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, restricted cash, accounts payable, accrued expenses, and due to seller, the carrying amounts approximate their fair values as they are 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.

Level 3 instruments are valued based on unobservable inputs that are supported by little or no market activity and reflect the Company’s own assumptions in measuring fair value. Future changes in fair value of the contingent financial milestone consideration, as a result of changes in significant inputs such as the discount rate and estimated probabilities of financial milestone achievements, could have a material effect on the unaudited Condensed Consolidated Statements of Operations and Comprehensive Income and Condensed Consolidated Balance Sheets in the period of the change.

In connection with the acquisition of Ryan Bros. Fort Atkinson, LLC (“Ryan Brothers”), the Company recorded $4,000,000 in contingent consideration to be paid based on the completion of certain performance obligations over a 24-month period. The Company recorded a change in fair value of contingent consideration in the amount of $7,284 and $0 for the three months ended March 31, 2024 and 2023, respectively. There was a remaining contingent liability balance of $1,828,302 and $1,821,018 as of March 31, 2024 and December 31, 2023, respectively (see Note 4).

In connection with the acquisition of Exceptional Medical Transportation, LLC (“Exceptional”), the Company also agreed to pay up to $2,000,000 in contingent consideration upon meeting certain performance conditions within two years of the closing date of such acquisition. The Company recorded a change in fair value of contingent consideration in the amount of $(13,730) and $0 for the three months ended March 31,2024 and 2023, respectively. There was a remaining contingent liability balance of $265,571 and $279,301 as of March 31, 2024 and December 31, 2023, respectively (see Note 4).

In connection with the acquisition of Location Medical Services, LLC (“LMS”), the Company recorded $2,475,540 in contingent consideration to be paid upon LMS meeting certain performance conditions in 2023. The Company did not record a change in fair value of contingent consideration for the three months ended March 31, 2024 and 2023, but recorded $(4,799) and $50,542 as a result of foreign exchange movement for the three months ended March 31, 2024 and 2023, respectively. There was a remaining contingent liability balance of $600,029 and $604,827 as of March 31, 2024 and December 31, 2023, respectively (see Note 4).

In connection with the acquisition of Cardiac RMS, LLC (“CRMS”), the Company recorded $15,822,190 in contingent consideration to be paid out over 36 months for the remaining 49% equity of CRMS, based on CRMS’ attainment of full-year EBITDA targets. The Company did not record a change in fair value of contingent consideration for the three months ended March 31, 2024 and 2023, respectively. There was a remaining contingent liability balance of $17,087,835 as of March 31, 2024 and December 31, 2023 (see Note 4).

Accounts Receivable

The Company contracts with hospitals, healthcare facilities, businesses, state and local government entities, and insurance providers to provide Mobile Health Services and to transport patients at specified rates. These rates are either on a per procedure or per transport basis, or on an hourly or daily basis. Accounts receivable consist of billings for healthcare and transportation services provided to patients. Billings typically are either paid or settled on the patient’s behalf by health insurance providers, managed care organizations, treatment facilities, government sponsored programs or businesses or patients directly. Accounts receivable are net of insurance provider contractual allowances, which are estimated at the time of billing based on contractual terms or other arrangements. Accounts receivable are periodically evaluated for collectability based on past credit history with payors and their current financial condition. Changes in the estimated collectability of accounts receivable are recorded in the results of operations for the period in which the estimate is revised. Accounts receivable deemed uncollectible are offset against the allowance for uncollectible accounts. The Company generally does not require collateral for accounts receivable.
Property and Equipment
Property and equipment are stated at cost, net of accumulated depreciation and amortization. When an item is sold or retired, the costs and related accumulated depreciation or amortization are eliminated, and the resulting gain or loss, if any, is recorded in operating expenses in the unaudited Condensed Consolidated Statement of Operations and Comprehensive
11

DocGo Inc. and Subsidiaries
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)
Income. The Company provides for depreciation and amortization using the straight-line method over the estimated useful lives of the respective assets. A summary of estimated useful lives is as follows:
Estimated Useful Life
Buildings39 years
Office equipment and furniture3 years
Vehicles
5-8 years
Medical equipment5 years
Leasehold improvementsShorter of useful life of asset or lease term
Expenditures for repairs and maintenance are expensed as incurred. Expenditures that improve an asset or extend its estimated useful life are capitalized.
Software Development Costs
Costs incurred during the preliminary project stage, maintenance costs and routine updates and enhancements of products are expensed as incurred. The Company capitalizes software development costs intended for internal use in accordance with ASC 350-40, Internal-Use Software. Costs incurred in developing the application of its software and costs incurred to upgrade or enhance product functionalities are capitalized when it is probable that the expenses would result in future economic benefits to the Company and the functionalities and enhancements are used for their intended purpose. Capitalized software costs are amortized over its useful life.
Estimated useful life of software development activities are reviewed annually or whenever events or changes in circumstances indicate that intangible assets may be impaired and adjusted as appropriate to reflect upcoming development activities that may include significant upgrades or enhancements to the existing functionality.
Business Combinations
The Company accounts for its business combinations under the provisions of ASC 805-10, Business Combinations (“ASC 805-10”), which requires that the acquisition method of accounting be used for all business combinations. Assets acquired and liabilities assumed, including noncontrolling interests, are recorded at the date of acquisition at their respective fair values. ASC 805-10 also specifies criteria that intangible assets acquired in a business combination must meet to be recognized and reported apart from goodwill.
Goodwill represents the excess purchase price over the fair value of the tangible net assets and intangible assets acquired in a business combination. If the business combination provides for contingent consideration, the Company records the contingent consideration at fair value at the acquisition date and any changes in fair value after the acquisition date are accounted for as measurement-period adjustments. Changes in fair value of contingent consideration resulting from events after the acquisition date, such as earn-outs, are recognized as follows: (1) if the contingent consideration is classified as equity, the contingent consideration is not re-measured and its subsequent settlement is accounted for within equity, or (2) if the contingent consideration is classified as a liability, the changes in fair value are recognized in earnings. For transactions that are business combinations, the Company evaluates the existence of goodwill or a gain from a bargain purchase. The Company capitalizes acquisition-related costs and fees associated with asset acquisitions and immediately expenses acquisition-related costs and fees associated with business combinations.
The estimated fair value of net assets to be acquired, including the allocation of the fair value to identifiable assets and liabilities, is determined using established valuation techniques. Management uses assumptions based on historical knowledge of the business and projected financial information of the target. These assumptions may vary based on future events, perceptions of different market participants and other factors outside the control of management, and such variations may be significant to estimated values.
Impairment of Long-Lived Assets
The Company evaluates the recoverability of the recorded amount of long-lived assets, primarily property and equipment and finite-lived intangible assets, whenever events or changes in circumstance indicate that the recorded amount of an asset may not be fully recoverable. An impairment is assessed when the undiscounted expected future cash flows derived from
12

DocGo Inc. and Subsidiaries
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)
an asset are less than its carrying amount. If an asset is determined to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the asset exceeds its fair value. Assets targeted for disposal are reported at the lower of the carrying amount or fair value less cost to sell.
Goodwill and Indefinite-Lived Intangible Assets
Goodwill represents the excess of the total purchase consideration over the fair value of the identifiable assets acquired and liabilities assumed in a business combination. Goodwill and indefinite-lived intangible assets are not amortized but are tested for impairment at the reporting unit level annually on December 31 or more frequently if events or changes in circumstances indicate that it is more likely than not to be impaired. These events include: (i) severe adverse industry or economic trends; (ii) significant company-specific actions, including exiting an activity in conjunction with restructuring of operations; (iii) current, historical or projected deterioration of the Company’s financial performance; or (iv) a sustained decrease in the Company’s market capitalization, as indicated by its publicly quoted share price, below its net book value.
Line of Credit
The costs associated with the Company’s line of credit are deferred and recognized over the term of the line of credit as interest expense.
Related Party Transactions
The Company defines related parties as affiliates of the Company, entities for which investments are accounted for by the equity method, trusts for the benefit of employees, principal owners (beneficial owners of more than 10% of the voting interest), management, members of immediate families of principal owners or management and other parties with which the Company may deal with if one party controls or can significantly influence management or the operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests.
Related party transactions are recorded within operating expenses in the Company’s unaudited Condensed Consolidated Statement of Operations and Comprehensive Income. For details regarding the related party transactions that occurred during the three months ended March 31, 2024 and 2023 refer to Note 16.
Revenue Recognition
On January 1, 2019, the Company adopted ASC 606, Revenue from Contracts with Customers (“ASC 606”).
To determine revenue recognition for contractual arrangements that the Company determines are within the scope of ASC 606, the Company performs the following five steps: (1) identify each contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to performance obligations in the contract; and (5) recognize revenue when (or as) the relevant performance obligation is satisfied. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services the Company provides to the customer.

The Company generates revenues from the provision of (1) Mobile Health Services and (2) Transportation Services. Since the customer simultaneously receives and consumes the benefits provided by the Company as the performance obligations are fulfilled, the Company satisfies performance obligations immediately. The Company has utilized the “right to invoice” expedient, which allows an entity to recognize revenue in the amount of consideration to which the entity has the right to invoice when the amount that the Company has the right to invoice corresponds directly to the value transferred to the customer. Revenues are recorded net of estimated contractual allowances for claims subject to contracts with responsible paying entities. The Company estimates contractual allowances at the time of billing based on contractual terms, historical collections or other arrangements. All transaction prices are fixed and determinable, which includes a fixed base rate, fixed mileage rate and an evaluation of historical collections by each payor.
Nature of Our Services
Revenue is primarily derived from:

i.Mobile Health Services: These services include a wide variety of healthcare services performed at homes, offices and other locations and event services such as on-site healthcare support at sporting events and concerts. This
13

DocGo Inc. and Subsidiaries
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)
segment also provides total care management solutions to large, typically underserved population groups, primarily through arrangements with municipalities, which include healthcare services as well as ancillary services, such as shelter.

ii.Transportation Services: These services encompass both emergency response and non-emergency transport services. Non-emergency transport services include ambulance transports and wheelchair transports. Net revenue from Transportation Services is derived from the transportation of patients based on billings to third party payors and healthcare facilities.

For Mobile Health Services, the performance of the services and any related support activities in the majority of the Company’s contracts are a single performance obligation under ASC 606. Mobile Health Services are typically billed based on a fixed rate (i.e., time and materials separately or combined) fee structure taking into consideration staff and materials utilized. The Company also concluded that Transportation Services and any related support activities are a single performance obligation under ASC 606. The transaction price is determined by the fixed rate usage-based fees or fixed fees that are agreed upon in the Company’s executed contracts.

As the performance associated with such services is known and quantifiable at the end of a period in which the services occurred (i.e., monthly or quarterly), revenues are typically recognized in the respective period performed. The typical billing cycle for Mobile Health Services and Transportation Services is same day to five days with payments generally due within 30 days. For large municipal customers in the Mobile Health Services segment, invoices are generally produced on a monthly basis, in arrears, and are generally due within 30-60 days of when they are submitted to the customer. For Transportation Services, the Company estimates the amount unbilled at month end and recognizes such amounts as revenue, based on available data and customer history. Since the majority of the Company’s Mobile Health Services and Transportation Services each represent a single performance obligation, allocation is not necessary as the transaction price (fees) for the services provided is standard and explicitly stated in the contractual fee schedule and/or invoice. For contracts with multiple distinct performance obligations, the Company allocates the transaction price based on their agreed-upon price to the individually identified performance obligations in the contract. The Company monitors and evaluates all contracts on a case-by-case basis to determine if multiple performance obligations are present in a contractual arrangement.

For Mobile Health Services, the customer also generally simultaneously receives and consumes the benefits provided by the Company as the performance obligations are fulfilled. Therefore, the Company satisfies performance obligations at the same time. For certain Mobile Health Services that have a fixed fee arrangement and are provided over time, revenue is recognized over time as the services are provided to the customer. For Transportation Services, since the customer simultaneously receives and consumes the benefits provided by the Company as the performance obligations are fulfilled, the Company satisfies performance obligations at the same time. For Transportation Services, where the customer pays fixed rate usage-based fees, the actual usage in the period represents the best measure of progress.

In the following table, revenues are disaggregated as follows:
Revenue BreakdownThree Months Ended
March 31,
20242023
Primary Geographical Markets
United States$179,110,846 $98,909,521 
United Kingdom12,976,683 14,093,182 
Total revenues$192,087,529 $113,002,703 
Major Segments/Service Lines
Mobile Health Services$143,941,158 $72,946,757 
Transportation Services48,146,371 40,055,946 
Total revenues$192,087,529 $113,002,703 
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(CONTINUED)
Stock-Based Compensation
The Company maintained stock incentive plans under which the Company may issue incentive and non-qualified stock options, restricted stock units and performance-based stock units. The Company accounts for stock-based compensation using the provisions of ASC 718, Stock-Based Compensation, which requires the recognition of the fair value of stock-based compensation. The Company expenses stock-based compensation over the requisite service period based on the estimated grant-date fair value of the awards. The Company estimates the fair value of stock option grants using the Black-Scholes option pricing model, and the assumptions used in calculating the fair value of stock-based awards represent management’s best estimates and involve inherent uncertainties and the application of management’s judgment. The Company accounts for forfeitures as they occur. For performance-based awards, expense is recognized over the period from the grant date to the estimated attainment date, which is the derived service period of the award, if management determines that it is probable that the performance-based vesting conditions will be achieved. All stock-based compensation costs are recorded in operating expenses in the unaudited Condensed Consolidated Statements of Operations and Comprehensive Income.
Earnings per Share
Earnings per share represents the net income attributable to stockholders divided by the weighted-average number of shares outstanding during the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue Common Stock were exercised or converted into Common Stock during the reporting periods. Potential dilutive Common Stock equivalents consist of the incremental shares of Common Stock issuable upon exercise of warrants and the incremental shares issuable upon conversion of stock options. In reporting periods in which the Company has a net loss, the effect is considered anti-dilutive and excluded from the diluted earnings per share calculation.
The following table presents the calculation of basic and diluted net income per share to stockholders of DocGo Inc. and Subsidiaries:
Three Months Ended
March 31,
20242023
Net income (loss) attributable to stockholders of DocGo Inc. and Subsidiaries$11,227,449 $(3,465,670)
Weighted-average shares outstanding - Basic103,818,362 102,579,291 
Effect of dilutive options4,688,073 1,236,473 
Weighted-average shares outstanding - Diluted108,506,435 102,579,291 
Net income (loss) per share attributable to DocGo Inc. and Subsidiaries - Basic 0.11 (0.03)
Net income (loss) per share attributable to DocGo Inc. and Subsidiaries - Diluted 0.10 (0.03)
Anti-dilutive employee share-based awards excluded8,675,277 9,337,239 
Equity Method Investment

The Company uses the equity method to account for investments in which the Company has the ability to exercise significant influence over the operating and financial policies of the investee but does not exercise control. The Company’s judgment regarding its level of influence over an equity method investee includes considering key factors, such as ownership interest, representation on the board of directors and participation in policy-making decisions.
Under the equity method, the Company’s investment is initially measured at cost and subsequently increased or decreased to recognize the Company’s share of income and losses of the investee, capital contributions and distributions and impairment losses. The Company performs a qualitative assessment annually and recognizes an impairment if there are sufficient indicators that the fair value of the investment is less than carrying value.

On October 26, 2021, the Company acquired a 50% interest in RND Health Services Inc. (“RND”) for $655,876. During the year ended December 31, 2023, the Company made an additional investment amounting to $298,932. The Company’s carrying value in RND, an equity method investee, is reflected in the caption “Equity method investments” in the unaudited Condensed Consolidated Balance Sheets. Changes in value of RND are recorded in “(Loss) gain on equity method investments” in the unaudited Condensed Consolidated Statements of Operations and Comprehensive Income.
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(CONTINUED)

On November 1, 2021, the Company acquired a 20% interest in National Providers Association, LLC (“NPA”) for $30,000. Effective December 21, 2021, three members withdrew from NPA, resulting in the remaining two members obtaining the remaining ownership percentage. As of March 31, 2024 and December 31, 2023, the Company owned 50% of NPA. The Company’s carrying value in NPA, an equity method investee, is reflected in the caption “Equity method investments” in the unaudited Condensed Consolidated Balance Sheets. Changes in value of NPA are recorded in “(Loss) gain on equity method investments” in the unaudited Condensed Consolidated Statements of Operations and Comprehensive Income.
Leases
The Company categorizes leases at its inception as either operating or finance leases based on the criteria in ASC 842, Leases (“ASC 842”). The Company adopted ASC 842 on January 1, 2019, using the modified retrospective approach, and has established a right-of-use asset and a current and non-current lease liability for each lease arrangement identified. The lease liability is recorded at the present value of future lease payments discounted using the discount rate that approximates the Company’s incremental borrowing rate for the lease established at the commencement date, and the right-of-use asset is measured as the lease liability plus any initial direct costs, less any lease incentives received before commencement. The Company recognizes a single lease cost, so that the remaining cost of the lease is allocated over the remaining lease term on a straight-line basis.
The Company has lease arrangements for vehicles, equipment and facilities. These leases typically have original terms not exceeding 10 years and in some cases contain multi-year renewal options, none of which are reasonably certain of exercise. The Company’s lease arrangements may contain both lease and non-lease components. The Company has elected to combine and account for lease and non-lease components as a single lease component. The Company has incorporated residual value obligations in leases for which there are such occurrences. Regarding short-term leases, ASC 842-10-25-2 permits an entity to make a policy election not to apply the recognition requirements of ASC 842 to short-term leases. The Company has elected not to apply the ASC 842 recognition criteria to any leases that qualify as short-term leases.
Income Taxes
Income taxes are recorded in accordance with ASC 740, Income Taxes (“ASC 740”), which provides for deferred taxes using an asset and liability approach. The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or its tax returns. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Valuation allowances are provided if based upon the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company accounts for uncertain tax positions in accordance with the provisions of ASC 740. When uncertain tax positions exist, the Company recognizes the tax benefit of tax positions to the extent that the benefit would more likely than not be realized assuming examination by the taxing authority. The determination as to whether the tax benefit will more likely than not be realized is based upon the technical merits of the tax position as well as consideration of the available facts and circumstances. The Company recognizes any interest and penalties accrued related to unrecognized tax benefits as income tax expense.
Recently Issued Accounting Standards Not Yet Adopted
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosure ("ASU 2023-07"). ASU 2023-07 updates reportable segment disclosure requirements, primarily through requiring enhanced disclosures about significant segment expenses and information used to assess segment performance. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2023-07 on its disclosures.
In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09"). ASU 2023-09 includes amendments requiring enhanced income tax disclosures, primarily related to standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The guidance is effective for fiscal years beginning after December 15, 2024, with early adoption permitted, and should be applied either prospectively or retrospectively. The Company is currently evaluating the impact of adopting ASU 2023-09 on its disclosures.
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(CONTINUED)
3. Property and Equipment, Net
Property and equipment, net as of March 31, 2024 and December 31, 2023 are as follows:
March 31,
2024
December 31,
2023
Transportation equipment$17,493,078 $17,438,072 
Medical equipment7,623,138 7,104,161 
Office equipment and furniture3,916,431 3,701,657 
Leasehold improvements756,577 709,619 
Buildings527,284 527,283 
Land37,800 37,800 
30,354,308 29,518,592 
Less: Accumulated depreciation(14,038,675)(12,683,108)
Property and equipment, net$16,315,633 $16,835,484 
During the three months ended March 31, 2024, the Company disposed of assets with a cost of $102,079 and accumulated depreciation of $61,834 for proceeds of $93,080. The Company recorded a gain on disposal of assets of $52,835 for the three months ended March 31, 2024.
The Company recorded depreciation expense of $1,431,308 and $1,482,610 for the three months ended March 31, 2024 and 2023, respectively.
4. Acquisition of Businesses
Exceptional Medical Transportation, LLC
On July 13, 2022, Holdings acquired 100% of the outstanding shares of common stock of Exceptional, a provider of medical transportation services, in exchange for $13,708,333 consisting of $7,708,333 in cash at closing and $6,000,000 payable over a 24-month period following the closing date of the acquisition. The Company also agreed to pay up to $2,000,000 in contingent consideration upon meeting certain performance conditions within two years of the closing date of such acquisition.
During the three months ended March 31, 2024, the Company recorded a change in contingent consideration in the amount of $(13,730). During the year ended December 31, 2023, the Company made a payment for the first installment due on the contingent liability in the amount of $426,655. The estimated contingent consideration amount payable for Exceptional was $265,571 and $279,301 as of March 31, 2024 and December 31, 2023, respectively. Additionally, the Company paid $3,000,000 of the $6,000,000 remaining purchase price payable as of December 31, 2023. As of March 31, 2024 and December 31, 2023, there was a due to seller balance of $3,000,000.
Ryan Bros. Fort Atkinson, LLC
On August 9, 2022, Holdings acquired 100% of the outstanding shares of common stock of Ryan Brothers, a provider of medical transportation services, in exchange for an aggregate purchase price of $11,422,252, consisting of $7,422,252 in cash at closing and an estimated $4,000,000 in contingent consideration to be paid out over 24 months, commencing on August 1, 2022, based on performance of certain obligations.
During the three months ended March 31, 2024, the Company recorded a change in contingent consideration in the amount of $7,284. During the year ended December 31, 2023, the Company made a payment for the first installment due on the contingent liability in the amount of $1,840,026. The estimated contingent consideration amount payable for Ryan Brothers was $1,828,302 and $1,821,018 as of March 31, 2024 and December 31, 2023, respectively.


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Location Medical Services, LLC
On December 9, 2022, Holdings, through UK Ltd., acquired 100% of the outstanding shares of common stock of LMS. The aggregate purchase price consisted of $302,450 in cash consideration. The Company also agreed to pay LMS an additional $11,279,201 in deferred consideration and an estimated $2,475,540 in contingent consideration upon LMS meeting certain performance conditions in 2023.
The Company recorded $(4,799) and $50,542 in foreign exchange movement during the three months ended March 31, 2024 and 2023, respectively. The estimated contingent consideration amount payable for LMS was $600,029 and $604,827 as of March 31, 2024 and December 31, 2023, respectively. Additionally, the Company paid $11,279,201 of deferred consideration to LMS during the year ended December 31, 2023. As of March 31, 2024 and December 31, 2023, there was no remaining due to seller amounts outstanding.
On April 2, 2024, the Company paid the contingent consideration balance in the amount of $600,029.
Cardiac RMS, LLC

On March 31, 2023, Holdings acquired 51% of the outstanding shares of common stock of CRMS, a provider of cardiac implantable electronic device remote monitoring and virtual care management services. The closing consideration of $10,000,000 consisted of $9,000,000 in cash and $1,000,000 worth of shares of Common Stock issued in a private placement transaction. A further probable consideration of $15,822,190 is to be paid out over 36 months following the closing of the transaction for the remaining 49% equity of CRMS, based on CRMS’ attainment of full-year EBITDA targets. $5,000,000 of such further probable consideration is to be paid in cash and the remaining $10,822,190 is to be paid in shares of Common Stock. Acquisition costs are included in general and administrative expenses and totaled $229,937 for the year ended December 31, 2023. During the year ended December 31, 2023, the Company recorded a change in contingent consideration in the amount of $1,265,645. As of March 31, 2024 and December 31, 2023, there was a remaining contingent liability balance of $17,087,835.
Ambulnz-FMC North America LLC

On April 1, 2023, the Company acquired the remaining outstanding shares of common stock of Ambulnz-FMC North America LLC (“FMC NA”), a prominent healthcare company that focuses on providing vital products and services for patients suffering from kidney diseases and renal failure, from its joint venture with Holdings in exchange for $4,000,000 in cash and $3,000,000 in Common Stock. Acquisition costs are included in general and administrative expenses totaling approximately $35,560 for the year ended December 31, 2023.

Healthworx LLC

On May 10, 2023, the Company acquired the remaining outstanding shares of common stock of Healthworx LLC (“Healthworx”), a provider of management, administration and support services to service providers focused on medical testing and diagnostic screening, from its joint venture with Rapid Reliable Testing, LLC (“RRT”) in exchange for $1,385,156 in cash.

The following table presents the assets acquired and liabilities assumed at the date of the acquisitions:
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(CONTINUED)
FMC NA
CRMSLMSRyan BrothersExceptionalTotal
Consideration:
Cash consideration$4,000,000 $9,000,000 $302,450 $7,422,252 $6,375,000 $27,099,702 
Stock consideration3,000,000 1,000,000    4,000,000 
Due to seller  11,279,201  6,000,000 17,279,201 
Amounts held under an escrow account    1,333,333 1,333,333 
Contingent liability 15,822,190 2,475,540 4,000,000 1,080,000 23,377,730 
Total consideration$7,000,000 $25,822,190 $14,057,191 $11,422,252 $14,788,333 $73,089,966 
Recognized amounts of identifiable assets acquired and liabilities assumed
Cash$ $1,574,604 $5,404,660 $620,548 $299,050 $7,898,862 
Accounts receivable 2,033,533 623,635 5,844,494 3,785,490 12,287,152 
Other current assets 293,478 134,216 136,157  563,851 
Property, plant and equipment  519,391 2,125,134 2,450,900 5,095,425 
Intangible assets 15,930,000 2,419,600 387,550 125,000 18,862,150 
Total identifiable assets acquired 19,831,615 9,101,502 9,113,883 6,660,440 44,707,440 
Accounts payable 28,978 40,447 44,911  114,336 
Due to seller 2,448,460  5,844,494 4,084,540 12,377,494 
Other current liabilities 174,177 1,012,992 286,792  1,473,961 
Total liabilities assumed 2,651,615 1,053,439 6,176,197 4,084,540 13,965,791 
Noncontrolling interests2,567,037     2,567,037 
Goodwill 8,642,190 6,009,128 8,484,566 12,212,433 35,348,317 
Additional paid-in-capital4,432,963     4,432,963 
Total purchase price$7,000,000 $25,822,190 $14,057,191 $11,422,252 $14,788,333 $73,089,966 
There were no new acquisitions for the three months ended March 31, 2024.







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(CONTINUED)
Pro Forma Disclosures
The following unaudited pro forma combined financial information for the three months ended March 31, 2023 gives effect to the acquisitions disclosed above as if they had occurred on January 1, 2023. The pro forma information is not necessarily indicative of the results of operations that actually would have occurred under the ownership and management of the Company.
Three Months Ended March 31, 2023
Revenue$116,116,322 
Net loss(2,879,996)
The unaudited pro forma combined financial information presented above includes the accounting effects of the acquisitions, including, to the extent applicable, amortization charges from acquired intangible assets, depreciation of property and equipment that have been revalued, transaction costs, interest expense, and the related tax effects. There were no new acquisitions for the three months ended March 31, 2024.

5. ABC Transaction and Held for Sale

In 2022, the Company started discussions regarding the potential liquidation process of Ambulnz Health, LLC (“Health”) through an assignment for the benefit of creditors (“ABC”), with a targeted timeline for the transaction to be fully closed by December 31, 2022. The conversation involved operations, human resources, external legal counsel, and Amb, LLC, a California limited liability company (the “Assignee”). Due to operational processes, the filing was extended and finalized on February 3, 2023.

An ABC is a liquidation process governed by state law (California law in this instance) that is an alternative to a bankruptcy case under federal law. Prior to commencing the ABC, Health ceased business operations and all of its employees were terminated and treated in accordance with California law. In the ABC, all of Health’s assets were transferred to the Assignee, who acted as a fiduciary for creditors and in a capacity equivalent to that of a bankruptcy trustee. The Assignee was responsible for liquidating the assets. Similar to a bankruptcy case, there was a claims process. Creditors of Health received notice of the ABC and a proof of claim form and were required to submit a proof of claim in order to participate in distribution of net liquidation proceeds by the Assignee.

As of December 31, 2022, Health met the criteria to be classified as held for sale. As a result, the Company was required to record the respective assets and liabilities at the lower of carrying value or fair value, less any costs to sell and present the related assets and liabilities as separate line items in the Condensed Consolidated Balance Sheets.

The intercompany receivables and intercompany payables were eliminated in the Company’s Condensed Consolidated Balance Sheet as of December 31, 2022.
6. Goodwill

The Company recorded an aggregate of $8,642,190 in goodwill in connection with its acquisitions in the year ended December 31, 2023.

The Company also updated the carrying value of the goodwill in its unaudited Condensed Consolidated Balance Sheets to reflect the currency translation adjustment. The carrying value of goodwill amounted to
$47,489,759 as of March 31, 2024. The changes in the carrying value of goodwill for the three months ended March 31, 2024 are as noted in the table below:
Carrying Value
Balance as of December 31, 2023$47,539,929 
Currency translation adjustment(50,170)
Balance as of March 31, 2024$47,489,759 
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(CONTINUED)
7. Intangibles
Intangible assets consisted of the following as of March 31, 2024 and December 31, 2023:
March 31, 2024
Estimated Useful
Life (Years)
Gross Carrying
Amount
AdditionsAccumulated
Amortization
Net Carrying
Amount
Patents15 years$83,784 $ $(16,988)$66,796 
Computer software5 years247,828  (238,007)9,821 
Operating licensesIndefinite9,399,004  — 9,399,004 
Internally developed software
4-5 years
10,078,087 793,240 (9,702,883)1,168,444 
Material contractsIndefinite62,550  — 62,550 
Customer relationships
8-9 years
28,337,524 (17,474)(4,126,814)24,193,236 
Trademark
8 years
343,747 (2,727)(56,837)284,183 
Non-compete agreements
5 years
100,000  (20,000)80,000 
Trade credits5 years1,500,000   1,500,000 
$50,152,524 $773,039 $(14,161,529)$36,764,034 
December 31, 2023
Estimated Useful
Life (Years)
Gross Carrying
Amount
AdditionsAccumulated
Amortization
Net Carrying
Amount
Patents15 years$62,823 $20,961 $(15,592)$68,192 
Computer software5 years247,828  (235,967)11,861 
Operating licensesIndefinite8,799,004 600,000 — 9,399,004 
Internally developed software
4-5 years
8,284,058 1,794,029 (8,821,563)1,256,524 
Material contractsIndefinite62,550  — 62,550 
Customer relationships
8-9 years
12,397,954 15,939,570 (3,334,925)25,002,599 
Trademark8 years326,646 17,101 (46,549)297,198 
Non-compete agreements5 years 100,000 (15,000)85,000 
Trade credits5 years 1,500,000  1,500,000 
$30,180,863 $19,971,661 $(12,469,596)$37,682,928 
The intangible assets include an immaterial foreign currency translation adjustment in the amount of $(3,050) for the three months ended March 31, 2024. Intangible asset balances are translated into U.S. dollars using exchange rates in effect at period end, and adjustments related to foreign currency translation are included in other comprehensive income.
The Company recorded amortization expense of $1,694,983 and $1,365,636 for the three months ended March 31, 2024 and 2023, respectively.
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(CONTINUED)
Future amortization expense at March 31, 2024 for the next five years and in the aggregate are as follows:
Amortization
Expense
2024, remaining$2,956,034 
20253,897,755 
20263,247,408 
20273,246,694 
20283,230,233 
Thereafter9,224,356 
Total$25,802,480 

8. Accrued Liabilities
Accrued liabilities consisted of the following as of March 31, 2024 and December 31, 2023:
March 31,
2024
December 31,
2023
Accrued subcontractors$19,039,490 $37,858,755 
Accrued general expenses19,644,487 27,001,232 
Accrued workers' compensation and other insurance liabilities14,825,588 12,881,902 
Accrued payroll8,070,291 6,464,192
Accrued bonus6,096,8004,784,005 
Other current liabilities2,501,600 2,350,523 
Total accrued liabilities$70,178,256 $91,340,609 
9. Line of Credit

On November 1, 2022, the Company entered into a credit agreement (the "Credit Agreement") with two banks, with one bank in the capacity as a lender and the administrative agent (collectively with the other lender, the “Lenders”). The Credit Agreement provides for a revolving credit facility in the initial aggregate principal amount of $90,000,000 (the “Revolving Facility”). The Revolving Facility includes the ability for the Company to request an increase to the commitment by an additional amount of up to $50,000,000, though no Lender (nor the Lenders collectively) is obligated to increase its respective commitments. Borrowings under the Revolving Facility bear interest at a per annum rate equal to: (i) at the Company’s option, (x) the base rate or (y) the adjusted term SOFR rate, plus (ii) the applicable margin. The applicable margins are based on the Company’s consolidated net leverage ratio, adjusted on a quarterly basis. The initial applicable margins are 1.25% for an adjusted term SOFR loan and 0.25% for a base rate loan and will be updated based on the Company's consolidated net leverage ratio. The Revolving Facility matures on November 1, 2027, the five-year anniversary of the closing date. The Revolving Facility is secured by a first-priority lien on substantially all of the Company’s present and future personal assets and intangible assets. The Revolving Facility is subject to certain financial covenants such as a net leverage ratio and interest coverage ratio, as defined in the Credit Agreement.

As of December 31, 2023, there was a $25,000,000 outstanding balance on the Revolving Facility. The Company drew down an additional $15,000,000 on February 8, 2024 under the Revolving Facility. On February 27, 2024, the Company paid the $40,000,000 line of credit balance. On March 4, 2024, the Company drew down $15,000,000 and made an additional $15,000,000 draw on March 18, 2024. As of March 31, 2024, the outstanding balance of the line of credit was $30,000,000 and the unused line of credit was $60,000,000. The Company incurred $449,099 and $0 in interest charges relating to its line of credit for the three months ended March 31, 2024 and 2023, respectively, which is reflected in interest income (expense) on the Company's unaudited Condensed Consolidated Statements of Operations and Comprehensive Income.
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(CONTINUED)
10. Notes Payable
The Company has various loans with finance companies with monthly installments aggregating $2,864, inclusive of interest ranging from 2.5% through 7.5%. The loan notes mature at various times through 2026 and are secured by transportation equipment.
The following table summarizes the Company’s notes payable:
March 31,
2024
December 31,
2023
Equipment and financing loans payable, between 2.5% and 7.5% interest and maturing between June 2024 and August 2026
$60,093 $69,717 
Total notes payable60,093 69,717 
Less: current portion of notes payable26,367 28,131 
Total non-current portion of notes payable$33,726 $41,586 
Interest expense was $883 and $29,034 for the three months ended March 31, 2024 and 2023, respectively.
Future minimum annual maturities of notes payable as of March 31, 2024 are as follows:
Notes Payable
2024, remaining$19,981 
202525,781 
202614,331 
Total maturities60,093 
Current portion of notes payable(26,367)
Long-term portion of notes payable$33,726 
11. Business Segment Information

The Company conducts business in three operating segments: Mobile Health Services, Transportation Services and Corporate. In accordance with ASC 280, Segment Reporting, operating segments are components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision makers, the Company’s Chief Executive Officer and Chief Financial Officer, in deciding how to allocate resources and assessing performance. Prior to 2023, the Company reported in two segments, because the Company’s entities have two main revenue streams. Beginning with the first quarter of 2023, the Company began reporting in three operating segments, adding a Corporate segment to allow for analysis of shared services and personnel that support both the Mobile Health Services and Transportation Services segments. Previously, these costs had been allocated almost entirely to the Transportation Services segment. All of the Company’s revenues and cost of revenues continue to be reported within the Transportation Services and Mobile Health Services segments. The Corporate segment contains operating expenses such as information technology costs, certain insurance costs and the compensation costs of senior and executive leadership. The segment reporting for the prior-year period has been adjusted to conform to the new methodology, for the purposes of allowing a clearer analysis of year-over-year performance. The Company’s Chief Executive Officer and Chief Financial Officer evaluate the Company’s financial information and resources and assess the performance of these resources by revenue stream and by operating income or loss performance.

The accounting policies of the segments are the same as the accounting policies of the Company as a whole. The Company evaluates the performance of its Mobile Health Services, Transportation Services and Corporate segments based primarily on results of operations.
23

DocGo Inc. and Subsidiaries
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)
Operating results for the business segments of the Company are as follows:

Mobile Health
Services
Transportation
Services
CorporateTotal
Three Months Ended March 31, 2024
Revenues$143,941,158 $48,146,371 $ $192,087,529 
Income (loss) from operations32,212,025 1,016,298 (17,352,956)15,875,367 
Total assets290,217,792 134,876,411 65,590,914 490,685,117 
Depreciation and amortization expense1,200,642 1,998,455 983,684 4,182,781 
Stock compensation1,912,290 138,424 1,937,625 3,988,339 
Long-lived assets46,236,132 66,118,463 10,725,695 123,080,290 
Capital expenditures129,190 3,208,082 798,213 4,135,485 
Three Months Ended March 31, 2023
Revenues$72,946,757 $40,055,946 $ $113,002,703 
Income (loss) from operations13,188,159 1,083,040 (21,173,786)(6,902,587)
Total assets152,352,877 118,998,556 136,193,743 407,545,176 
Depreciation and amortization expense716,539 1,863,304 1,069,486 3,649,329 
Stock compensation116,934 259,693 8,073,389 8,450,016 
Long-lived assets32,775,318 82,637,490 11,469,921 126,882,729 
Capital expenditures26,090,733 3,625,456 1,499,647 31,215,836 
Long-lived assets include property and equipment, goodwill, intangible assets, operating lease right-of-use assets and finance lease right-of-use assets.
Geographic Information
The following table summarizes long-lived assets by geographic location for the three months ended March 31, 2024 and 2023:
March 31,
2024
March 31,
2023
Primary Geographical Markets
United States$103,643,069 $108,243,999 
United Kingdom19,437,221 18,638,730 
Total Long-Lived Assets$123,080,290 $126,882,729 
Revenues by geographic location are included in Note 2.
12. Equity
Share Repurchase Program

On May 24, 2022, the Company’s Board of Directors (the “Board of Directors”) authorized a share repurchase program to purchase up to $40,000,000 of Common Stock (the “2022 Program”). During the second and fourth quarter of 2022, the Company repurchased 536,839 shares of its Common Stock for $3,731,712. These shares were subsequently cancelled. The 2022 Program, which did not obligate the Company to repurchase a specific number of shares, expired on November 24, 2023.

On January 31, 2024, the Company's Board of Directors authorized a new share repurchase program pursuant to which the Company may purchase up to $36,000,000 in shares of Common Stock during a six-month period ending July 30, 2024 (the "Repurchase Program"). The Repurchase Program does not obligate the Company to repurchase a specific number of shares.
24

DocGo Inc. and Subsidiaries
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)

Under the terms of the Repurchase Program, the Company may purchase shares of Common Stock on a discretionary basis from time to time through open market repurchases or privately negotiated transactions or through other means, including by entering into Rule 10b5-1 trading plans or accelerated share repurchase programs, in each case, during an “open window” and when the Company does not possess material non-public information.

The timing, manner, price and amount of shares repurchased under the Repurchase Program will depend on a variety of factors, including stock price, trading volume, market conditions, corporate and regulatory requirements and other general business considerations. The Repurchase Program may be modified, suspended or discontinued at any time without prior notice.

Repurchases under the Repurchase Program may be funded from the Company’s existing cash and cash equivalents, future cash flow or proceeds of borrowings or debt offerings.

During the three months ended March 31, 2024, the Company repurchased and subsequently cancelled 1,255,614 shares of Common Stock for $4,877,559.
13. Stock-Based Compensation
Stock Options
In 2021, the Company established the DocGo Inc. 2021 Equity Incentive Plan (the “Plan”), which replaced Ambulnz, Inc.’s 2017 Equity Incentive Plan. The Plan initially reserved 16,607,894 shares of Common Stock for issuance under the Plan. The Company’s stock options generally vest on various terms based on continuous services over periods ranging from three to five years. The stock options are subject to time vesting requirements through 2033 and are nontransferable. Stock options granted have a maximum contractual term of 10 years. As of March 31, 2024, approximately 5.1 million employee stock options had vested.
The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing model. Before the consummation of the Business Combination, management took the average of several publicly traded companies that were representative of the Company’s size and industry in order to estimate its expected stock volatility. Subsequent to the Business Combination, the Company utilized publicly available pricing. The expected term of the options represented the period of time the instruments were expected to be outstanding. The Company based the risk-free interest rate on the rate payable on the U.S. Treasury securities corresponding to the expected term of the awards at the date of grant. Expected dividend yield was zero based on the fact that the Company had not historically paid and does not intend to pay a dividend in the foreseeable future.
The following assumptions were used to compute the fair value of the stock option grants during the three months ended March 31, 2024 and 2023:
Three Months Ended March 31,
20242023
Risk-free interest rate4.3 %
0.7% - 4.3%
Expected term (in years)56.25
Volatility70.7 %
60% - 69%
Dividend yield % %

25

DocGo Inc. and Subsidiaries
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)
The following table summarizes the Company’s stock option activity under the Plan for the three months ended March 31, 2024:
Options
Shares
Weighted
Average
Exercise Price
Weighted
Average
Remaining
Contractual
Life in Years
Aggregate
Intrinsic
Value
Balance as of December 31, 202311,942,264 $7.36 8.16$50,315,593 
Granted/vested50,000 3.66 — — 
Exercised  — — 
Cancelled(203,279)5.69 — — 
Balance as of March 31, 202411,788,985 7.38 8.0549,866,336 
Options vested and exercisable as of March 31, 20245,135,931 $6.89 7.53$2,173,571 
The aggregate intrinsic value in the above table is calculated as the difference between the fair value of the Common Stock price and the exercise price of the stock options. The weighted average grant date fair value per share for stock option grants during the three months ended March 31, 2024 and the year ended December 31, 2023 was $3.66 and $7.93, respectively.
For the three months ended March 31, 2024 and 2023, the total recorded stock-based compensation related to stock option awards granted was $2,455,143, and $2,706,591, respectively.
On March 31, 2024 and December 31, 2023, the total unrecognized compensation related to unvested stock option awards granted was $19,926,689 and $29,058,756, respectively, which the Company expects to recognize over a weighted-average period of approximately 1.77 years.
Restricted Stock Units
The fair value of restricted stock units (“RSUs”) is determined on the date of grant. The Company records compensation expenses in the unaudited Condensed Consolidated Statements of Operations and Comprehensive Income on a straight-line basis over the vesting period for RSUs. The vesting period for employees and members of the Board of Directors ranges from one to four years.
26

DocGo Inc. and Subsidiaries
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)
Activity under RSUs during the three months ended March 31, 2024 was as follows:
RSUsWeighted-
Average
Grant Date
Fair Value
Per RSU
Balance as of December 31, 20232,424,095 $5.61 
Granted818,2473.67 
Vested(165,688)4.23 
Forfeited  
Balance as of March 31, 20243,076,6545.16 
Vested and unissued as of March 31, 202458,4345.85 
Non-vested as of March 31, 20243,018,220 $5.16 
The total grant-date fair value of RSUs granted during the three months ended March 31, 2024 was $2,999,432.
For the three months ended March 31, 2024 and 2023, the Company recorded stock-based compensation expense related to RSUs of $1,184,394 and $429,675, respectively.
On March 31, 2024, and December 31, 2023, the total unrecognized compensation related to unvested RSUs granted was $13,987,767, and $12,602,662, respectively, which is expected to be recognized over a weighted-average period of approximately 2.1 years.
Performance-based Stock Units
The fair value of performance-based restricted stock units (“PSUs”) is determined on the date of grant. The Company records compensation expense in the unaudited Condensed Consolidated Statement of Operations and Comprehensive Income on a straight-line basis over the vesting period for PSUs. The vesting period for employees and members of the Board of Directors ranges from one to four years.
Activity under PSUs during the three months ended March 31, 2024 was as follows:
PSUsWeighted-
Average
Grant Date
Fair Value
Per PSU
Balance as of December 31, 20231,085,270 $5.16 
Granted  
Vested  
Forfeited  
Balance as of March 31, 20241,085,2705.16 
Vested and unissued as of March 31, 2024  
Non-vested as of March 31, 20241,085,270 $5.16 
The total grant-date fair value of PSUs granted during the three months ended March 31, 2024 was $0.
For the three months ended March 31, 2024 and 2023, the Company recorded stock-based compensation expense related to PSUs of $348,802 and $0, respectively, which are included in accrued liabilities.
27

DocGo Inc. and Subsidiaries
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)
As of March 31, 2024, and December 31, 2023, the total unrecognized compensation related to unvested PSUs granted was $5,178,365, and $5,527,166, respectively, which is expected to be recognized over a weighted-average period of approximately 3.8 years.
14. Leases
Operating Leases
The Company is obligated to make rental payments under non-cancellable operating leases for office, dispatch station space and transportation equipment, expiring at various dates through 2032. Under the terms of the leases, the Company is also obligated for its proportionate share of real estate taxes, insurance and maintenance costs of the property. The Company is required to hold certain funds in restricted cash and cash equivalents accounts under some of these agreements.
Certain leases for property and transportation equipment contain options to purchase, extend or terminate the lease. Determining the lease term and amount of lease payments to include in the calculation of the right-of-use asset and lease obligations for leases containing options requires the use of judgment to determine whether the exercise of an option is reasonably certain and whether the optional period and payments should be included in the calculation of the associated right-of-use asset and lease obligation. In making such determination, the Company considers all relevant economic factors that would require whether to exercise or not exercise the option.
The Company’s lease agreements generally do not provide an implicit borrowing rate. Therefore, the Company used a benchmark approach to derive an appropriate imputed discount rate. The Company benchmarked itself against other companies of similar credit ratings and comparable quality and derived imputed rates, which were used to discount its real estate lease liabilities. The Company used estimated borrowing rates of 6% on January 1, 2019 for all leases that commenced prior to that date for office spaces and transportation equipment.
Loss on Lease Remeasurement
In March 2024, the Company reassessed the use of an office space for one entity. As a result, the Company terminated the leased office space, which resulted in a loss of $7,306 recorded as loss from remeasurement of operating lease on the unaudited Condensed Consolidated Statement of Operations and Comprehensive Income during the three months ended March 31, 2024.
Lease Cost
The table below comprises operating lease expenses for the three months ended March 31, 2024 and 2023:
Three Months Ended
March 31,
Components of total lease cost:20242023
Operating lease expense$936,750 $756,245 
Short-term lease expense468,874 336,318 
Total lease cost - operating leases$1,405,624 $1,092,563 
28

DocGo Inc. and Subsidiaries
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)
Lease Position as of March 31, 2024
Right-of-use assets and lease liabilities for the Company’s operating leases were recorded in the unaudited Condensed Consolidated Balance Sheets as follows:
March 31, 2024December 31, 2023
Assets
Lease right-of-use assets$9,125,733 $9,580,535 
Total lease assets$9,125,733 $9,580,535 
Liabilities  
Current liabilities:  
Lease liability - current portion$2,835,458 $2,773,020 
Noncurrent liabilities:  
Lease liability, net of current portion6,720,787 7,223,941 
Total lease liability$