Company: PIII
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001628280-25-015305
Chunk: 29

Company: P3 Health Partners Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 7
Chunk 29
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 table summarizes current and long-term material cash requirements as of December 31, 2024:

Material Cash RequirementsTotalLess than1 year1-3years3-5yearsMore than5 years(in thousands)Unpaid claims(1)$255,089 $255,089 $— $— $— Long-term debt, principal(2)168,807 65,000 40,375 63,432 — Long-term debt, interest(3)84,870 19,518 56,773 8,579 — Operating lease liabilities(4)19,612 3,996 6,862 5,961 2,793 Total$528,378 $343,603 $104,010 $77,972 $2,793 

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(1)Represents unpaid claims due to third parties for health care services provided to members, including estimates for incurred but not reported claims. Estimates for incurred claims are based on historical enrollment and cost trends while also taking into consideration operational changes. Future and actual results typically differ from estimates. Differences could result from an overall change in medical expense per members, changes in member mix or simply due to addition of new members.

(2)Represents principal payments only. We will pay interest on outstanding indebtedness based on the rates and terms summarized in Note 10 “Debt” in our consolidated financial statements.

(3)Represents interest expected to be incurred on our long-term debt based on amounts outstanding as of December 31, 2024 as summarized in Note 10 “Debt” in our consolidated financial statements.

(4)Represents minimum operating lease payments, excluding potential lease renewals. See Note 13 “Commitments and Contingencies” in our consolidated financial statements.

Liquidity and Going Concern

As discussed above, we have experienced losses since our inception, and as of December 31, 2024, we had an accumulated deficit of $503.2 million. For the year ended December 31, 2024, we incurred net losses of $310.4 million and used $110.1 million of cash for operating activities. As of December 31, 2024, we had $38.8 million of unrestricted cash and cash equivalents, $154.8 million of outstanding indebtedness, of which $65.0 million is classified as current on our balance sheet, and $255.1 million of unpaid claims. We expect