Company: PIII
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001832511-25-000025
Chunk: 99

Company: P3 Health Partners Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 99
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 changes and their impact on cash flows. The amendments address these concerns by improving income tax disclosures, primarily related to the rate reconciliation and income taxes paid information. The amendments in this update are effective for annual periods beginning after December 15, 2024 and should be applied prospectively. Retrospective application is permitted. The Company expects to adopt this ASU on a prospective basis. The adoption will impact the Company’s disclosures but is not expected to have a material impact on the Company’s results of operations or financial condition.ASU 2023-06, Disclosure Improvements: Codification Amendments In Response to the SEC’s Disclosure Update and Simplification Initiative (“ASU 2023-06”)ASU 2023-06 clarifies or improves disclosure and presentation requirements on a variety of topics and aligns the requirements in the Codification with the SEC’s regulations. The effective date for each amendment will be the date on which the SEC’s removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. The amendments in this update should be applied prospectively. If 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 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.

P3 Health Partners Inc. | Q3 2025 Form 10-Q | 14

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 September 30, 2025$99 $— $7,429 $7,528 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:September 30, 2025December 31, 2024Volatility95.3 %91.7 %Risk-free interest rate3.8 %4.4 %Exercise price$25.29 $25.00 Expected term 5.5 years6.2 yearsThe exercise price for December