Company: PIII
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001628280-25-026021
Chunk: 41

Company: P3 Health Partners Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 41
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 If we are unable to obtain additional funding when needed, we will need to curtail planned activities, divest certain operations, sell certain assets or reduce our costs, which will likely have an unfavorable effect on our ability to execute on our business plan, and have an adverse effect on our business, results of operations, and future prospects.

The unaudited condensed consolidated financial statements included elsewhere in this Form 10-Q have been prepared assuming we will continue as a going concern and do not include any adjustments that might result from the outcome of these uncertainties.

Cash Flows

The following table summarizes our cash flows:

Three Months Ended March 31,20252024(in thousands)Net cash used in operating activities$(33,466)$(20,030)Net cash provided by (used in) investing activities— — Net cash provided by financing activities30,657 11,401 Net change in cash$(2,809)$(8,629)

Operating Activities

Net cash used in operating activities was $33.5 million for the three months ended March 31, 2025, compared to net cash used in operating activities of $20.0 million for the three months ended March 31, 2024. Significant changes impacting net cash used in operating activities during the three months ended March 31, 2025 as compared to the three months ended March 31, 2024 were primarily due to changes in working capital.

Financing Activities

Net cash provided by financing activities was $30.7 million for the three months ended March 31, 2025, primarily consisting of proceeds from the borrowings on the VGS 4 Promissory Note and short-term financing agreements for the funding of certain insurance policies. Net cash provided by financing activities was $11.4 million for the three months ended March 31, 2024, consisting of proceeds from the issuance of the VGS 2 Promissory Note and short-term financing agreements for the funding of certain insurance policies.

Critical Accounting Estimates

The discussion and analysis of our financial condition and results of operations are based upon our condensed consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of these condensed consolidated financial statements requires management to use judgment in the application of accounting policies, including making estimates and assumptions that could affect assets and liabilities, revenue and expenses and related disclosures of contingent assets and liabilities. Management bases its estimates on the best information available at the time, its experiences and various other assumptions believed to be reasonable under the circumstances.