Company: PIII
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001628280-25-026021
Chunk: 68

Company: P3 Health Partners Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 68
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 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:Three Months Ended March 31,20252024(in thousands)Beginning balance $10,185 $29 Mark-to-market adjustment of stock warrants(3,322)(5)Ending balance$6,863 $24 The Company recorded gains of $3.3 million and $0.2 million from changes in the fair value of stock warrants for the three months ended March 31, 2025 and 2024, respectively.The book value of cash; clinic fees, insurance receivables, and other receivables; accounts payable; and accrued expenses and other current liabilities approximate fair value because of the short maturity and high liquidity of these instruments.

Note 6: Property and EquipmentThe Company’s property and equipment balances consisted of the following:March 31, 2025December 31, 2024(in thousands)Leasehold improvements$2,391 $2,332 Furniture & fixtures1,066 1,106 Computer equipment & software7,064 7,060 Medical equipment1,050 1,082 Software (development in process)343 343 Vehicles633 659 Other32 — 12,579 12,582 Less: accumulated depreciation(7,271)(6,848)Property and equipment, net$5,308 $5,734 Total depreciation of property and equipment recognized on the condensed consolidated statements of operations was $0.6 million and $0.5 million for the three months ended March 31, 2025 and 2024, respectively.Assets Held for SaleOn November 30, 2024, the Company and certain of its subsidiaries (the “Sellers”) entered into an asset purchase agreement with certain entities affiliated with an entity in which Chicago Pacific Founders (“CPF”), the Company’s principal stockholder, has an ownership interest (the “Buyers”), which was amended on December 30, 2024, effective as of December 5, 2024 (as amended, the “Florida Asset Purchase Agreement”). Pursuant to the Florida Asset Purchase Agreement, the Sellers sold to the Buyers all of the assets, clinical and non-clinical, exclusively or primarily used by the Company’s MA-related business operated out of Eagle Park, Florida (the “Florida Assets”). The Company closed on the sale of the remaining Florida assets