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

Company: P3 Health Partners Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 10
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3Total(in thousands)Warrant liability as of March 31, 2025$127 $— $6,863 $6,990 Warrant liability as of December 31, 2024$127 $— $10,185 $10,312 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:March 31, 2025December 31, 2024Volatility93.5 %91.7 %Risk-free interest rate4.0 %4.4 %Exercise price$0.50 $0.50 Expected term 6.0 Years6.2 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 declared, 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.

P3 Health Partners Inc. | Q1 2025 Form 10-Q | 13

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: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