Company: PIII
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001628280-25-015305
Chunk: 183

Company: P3 Health Partners Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 7
Chunk 183
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 by June 30, 2027, the SEC has not removed the applicable requirement from Regulation S-X or Regulation S-K, the pending content of the related amendment 

P3 Health Partners Inc. | 2024 Form 10-K | 94

will be removed from the Codification and will not become effective for any entity. The Company is evaluating the effect ASU 2023-06 will have on its consolidated financial statements and related disclosures.

Note 5: Fair Value Measurements and HierarchyInformation about the Company’s financial liabilities measured at fair value on a recurring basis is presented below:Level 1Level 2Level 3Total(in thousands)Warrant liability as of December 31, 2024$127 $— $10,185 $10,312 Warrant liability as of December 31, 2023$1,056 $— $29 $1,085 The key Level 3 weighted average inputs into the option pricing model related to the private placement warrants to purchase Class A common stock were as follows:December 31,20242023Volatility91.7 %75.0 %Risk-free interest rate4.4 %4.0 %Exercise price$0.50 $11.50 Expected term 6.2 years2.9 yearsGenerally, an increase in the market price of the Company’s shares of common stock, an increase in the volatility of the Company’s shares of common stock, and an increase in the remaining term of the warrants would each result in a directionally similar change in the estimated fair value of the Company’s warrant liabilities. Such changes would increase the associated liability while decreases in these assumptions would decrease the associated liability. An increase in the risk-free interest rate would result in a decrease in the estimated fair value measurement and thus a decrease in the associated liability. The Company has not, and does not plan to, declare dividends on its common stock and, as such, there is no change in the estimated fair value of the warrant liabilities due to the dividend assumption.The following table sets forth a summary of changes in the fair value of the Company’s private placement warrants to purchase Class A common stock, which are considered to be Level 3 fair value measurements:December 31,20242023(in thousands)Beginning balance $29 $40 Issuance of May 2024 Common Warrants (see Note 12)31,341 — Mark-to-market adjustment of stock warrants(21