DocGo (DCGO) risk factors, FY2025 10-K

Risks Related to DocGo’s Business Strategy

1. 01DocGo’s failure to successfully implement its business strategy could adversely affect its business
2. 02DocGo incurs significant up-front costs in its client relationships and any inability to maintain and grow these client relationships over time or to recover these costs could adversely affect its business
3. 03The growth of DocGo’s business depends, in part, on its ability to execute on its acquisition strategy
4. 04DocGo’s acquisition strategy exposes it to significant risks and additional costs
5. 05Any inability to successfully integrate acquisitions or realize their anticipated benefits could adversely affect DocGo’s business
6. 06DocGo’s inability to manage its growth through acquisitions, including its inability to manage the integration process, and to realize the anticipated benefits of an acquisition could have a material adverse effect on its business, financial condition and results of operations

Risks Related to DocGo’s Business and Industry

1. 07The high level of competition in DocGo’s industry could adversely affect its business
2. 08DocGo’s revenues could be adversely affected if it loses some or all of its business under existing contracts
3. 09DocGo’s reliance on government contracts could adversely affect its business
4. 10A significant portion of DocGo’s recent revenue is derived from a small number of large customers38% rewritten
5. 11Impairments of the carrying value of DocGo’s goodwill and other intangible assets have adversely affected its financial condition and results of operations and could again in the futureNew
6. 12Negative media coverage and publicity could damage DocGo's reputation and harm its ability to bid for and win government and other contracts
7. 13In order to effectively provide its services, DocGo’s suppliers must provide it with sufficient vehicles and medical and other supplies at acceptable costs and on a timely basis. Such vehicles and supplies must also comply with regulatory requirements and quality control standards and meet agreed upon specifications
8. 14In addition, geopolitical events, inflation, increased tariffs, trade disputes and other factors affecting the macroeconomic environment could negatively impact the price and availability of vehicles and supplies that DocGo purchases from its suppliers
9. 15DocGo’s participation in partnerships driven by value-based reimbursement models may have a material adverse effect on its business, financial condition and results of operations
10. 16DocGo may enter into a large-scale deployment of resources in response to a national emergency as a subcontractor to FEMA or other similar entities, which may adversely affect DocGo’s business
11. 17The COVID-19 pandemic and related direct and indirect impacts adversely affected, and a future health crisis may adversely affect, DocGo’s Transportation Services segment. COVID-19 also heightened, and a future health crisis may heighten, various risks related to DocGo’s business

Risks Related to DocGo’s Limited Operating History

1. 18DocGo’s limited operating history may make it difficult to evaluate its business, which may be unsuccessful
2. 19DocGo has a history of losses, faces the possibility of further operating losses in the future and may not achieve or sustain profitability or have sufficient liquidity to continue operating as plannedNew
3. 20If DocGo is unable to effectively manage its growth, its financial performance and future prospects will be adversely affected

Risks Related to Information Technology

1. 21DocGo’s proprietary software may not operate properly, which could damage DocGo’s reputation, give rise to claims against DocGo or divert application of DocGo’s resources from other purposes, any of which could harm DocGo’s business, financial condition and results of operations
2. 22If DocGo cannot implement its solution for clients or resolve any technical issues in a timely manner, DocGo may lose clients and its reputation may be harmed
3. 23DocGo’s reliance on third-party software could adversely affect its business
4. 24Some of DocGo’s software and systems contain open-source software, which may pose particular risks to DocGo’s proprietary software, technologies, products and services in a manner that could harm its business
5. 25Security breaches, loss of data and other disruptions or cybersecurity incidents could compromise sensitive business, customer or patient information or prevent DocGo from accessing critical information and expose it to liability, which could adversely affect DocGo’s business
6. 26The use of artificial intelligence (“AI”) in DocGo’s operations poses inherent risks and could adversely affect DocGo’s business72% rewritten

Risks Related to DocGo’s Operations

1. 27DocGo’s current liquidity could raise substantial doubt about its ability to continue as a going concern, which may materially and adversely affect its business, financial condition, results of operations and prospectsNew
2. 28DocGo’s success depends on its key management personnel
3. 29DocGo’s labor costs are significant and any inability to control those costs could adversely affect its business
4. 30DocGo’s inability to successfully recruit, train and retain qualified healthcare professionals could adversely affect its business
5. 31DocGo’s employees may work in challenging environments, which could result in liability or other costs that could adversely affect DocGo’s business
6. 32DocGo’s inability to collect on its customer receivables or unfavorable shifts in payor mix could adversely affect its business
7. 33DocGo may not accurately assess the costs it will incur under new revenue opportunities
8. 34If DocGo is unable to successfully develop new offerings and technologies or adapt to rapidly changing technology and industry standards or changes to regulatory requirements, DocGo’s business could be adversely affected
9. 35DocGo’s marketing efforts to help grow its business may not be effective
10. 36DocGo’s insurance coverage, including the reserves DocGo establishes with respect to its insurable losses, could adversely affect its business
11. 37DocGo is required to make capital expenditures in order to remain competitive
12. 38DocGo’s international operations in the United Kingdom subject it to additional risks that could adversely affect its business
13. 39DocGo’s business could be materially and adversely affected by natural disasters, other catastrophic events, acts of war or terrorism, cybersecurity incidents and/or other acts by third parties
14. 40We are subject to regulations, reporting requirements, standards or expectations regarding the environmental impact of our business, which have the potential to disrupt our business or otherwise adversely impact our business, financial conditions or results of operations63% rewritten
15. 41Rising inflation may negatively impact DocGo’s business and financial results61% rewritten

Risks Related to DocGo’s Intellectual Property

1. 42DocGo’s failure to protect or enforce its intellectual property rights could impair its ability to protect its technology and brand
2. 43Claims by others that DocGo infringed their proprietary technology or other intellectual property rights could adversely affect DocGo’s business

Risks Related to DocGo’s Legal and Regulatory Environment

1. 44DocGo could be subject to lawsuits for which it does not have sufficient reserves, which could have a material adverse effect on DocGo’s business, financial condition and results of operations
2. 45DocGo is subject to a variety of federal, state and local laws and regulatory regimes, including a variety of labor laws and regulations and SEC rules and regulations, and changes to or the failure to comply with these laws and regulations could adversely affect DocGo’s business
3. 46DocGo’s ability to utilize its net operating loss carryforwards and certain other tax attributes may be limited30% rewritten
4. 47Changes in tax laws or unanticipated tax liabilities could adversely affect DocGo’s effective income tax rate and profitability35% rewritten
5. 48Changes in accounting rules, assumptions or judgments could materially and adversely affect DocGo
6. 49DocGo’s internal control over financial reporting may not be effective, and its independent registered public accounting firm may not be able to certify as to their effectiveness, which could adversely affect DocGo’s business
7. 50DocGo conducts business in the heavily regulated healthcare industry, and any failure to comply with these laws and government regulations could require DocGo to make significant changes to its operations and could have a material adverse effect on its business, financial condition and results of operations
8. 51DocGo is required to comply with laws governing the transmission, security and privacy of health information and personally identifiable information45% rewritten
9. 52privacy, data protection and information security creates significant compliance issues for DocGo and potentially restricts its ability to collect, use and disclose data and can expose it to additional expense, adverse publicity and liabilityNew
10. 53If DocGo does not effectively adapt to changes in the healthcare industry, including changes to laws and regulations regarding telehealth, DocGo’s business may be harmed
11. 54DocGo must be properly enrolled in governmental healthcare programs before it can receive reimbursement for services, and there may be delays in the enrollment process
12. 55Reductions in Medicare reimbursement rates or changes in the rules governing the Medicare program could have a material adverse effect on DocGo76% rewritten
13. 56State and federal efforts to reduce Medicaid spending could adversely affect DocGo81% rewritten
14. 57combined with slower state revenue growth, has led both the federal government and many states to institute measures aimed at controlling the growth of Medicaid spending, and in some instances reducing aggregate Medicaid spendingNew
15. 58DocGo has been the subject of federal, state and municipal investigations, audits and compliance reviews and may be subject to additional investigations, audits and reviews in the future
16. 59DocGo’s business practices may be found to constitute illegal fee-splitting or corporate practice of medicine, which may lead to penalties and could adversely affect DocGo’s business

Risks Related to DocGo’s Indebtedness

1. 60These limitations could adversely affect DocGo’s operating performance, growth, profitability and financial condition, which would make it more difficult for it to generate sufficient cash flow to satisfy its obligations under its indebtedness
2. 61The terms of the Credit Agreement and potential future debt arrangements could restrict its current and future operations, particularly its ability to respond to changes or to take certain actions35% rewritten
3. 62If the financial institutions that are lenders under the Revolving Facility fail to extend credit under the facility, DocGo’s liquidity and results of operations may be adversely affected55% rewritten
4. 63DocGo might incur future debt, which could further increase the risks to its financial condition described above63% rewritten
5. 64If DocGo is unable to generate sufficient cash to service its indebtedness, it may be forced to take other actions to fund the satisfaction of its obligations under its indebtedness, which may not be successful
6. 65DocGo’s variable rate indebtedness could subject it to interest rate risk, which could cause its debt service obligations to increase significantly

Risks Related to Ownership of Common Stock

1. 66Nasdaq may delist DocGo’s securities from trading on its exchange, which could limit investors’ ability to make transactions in its securities and subject DocGo to additional trading restrictions100% rewritten
2. 67The Common Stock is listed on Nasdaq under the symbol “DCGO.” DocGo is required to meet continued listing requirements for its securities to continue to be listed on Nasdaq, including having a minimum number of public securities holders and a minimum stock priceNew
3. 68The Notice had no immediate effect on the continued listing status of the Common Stock on The Nasdaq Capital Market, and therefore, DocGo’s listing remains fully effectiveNew
4. 69Because there are no current plans to pay cash dividends on Common Stock for the foreseeable future, you may not receive any return on investment unless you sell your Common Stock for a price greater than that which you paid for it
5. 70If securities analysts do not publish research or reports about DocGo’s business or if they downgrade the Common Stock or DocGo’s sector, DocGo’s stock price and trading volume could decline
6. 71Future sales, or the perception of future sales, by DocGo or its stockholders in the public market could cause the market price for Common Stock to decline
7. 72DocGo’s share repurchase program may subject it to certain risks, and DocGo cannot provide any guarantees that it will repurchase Common Stock pursuant to its share repurchase program
8. 73Anti-takeover provisions in DocGo’s organizational documents could delay or prevent a change of control37% rewritten
9. 74action arising under the Securities Act, to the fullest extent permitted by law, shall be the federal district courts of the U.S.; provided however, these provisions of the certificate of incorporation will not apply to suits brought to enforce a duty or liability created by the Exchange Act (as explained below)New
10. 75The market price and trading volume of Common Stock may be volatile, and the value of Common Stock has declined and could continue to decline
11. 76Future issuances of debt securities and equity securities may adversely affect DocGo, including the market price of Common Stock and may be dilutive to existing stockholders