The Company tests goodwill for impairment for its reporting units annually as of July 1, or more frequently when events or changes in circumstances indicate that impairment may have occurred. The Company reviews its intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset group may not be recoverable.

During the second quarter of 2025, the Company determined that, based on its qualitative assessment for each reporting unit, factors existed that required the Company to test its goodwill and indefinite-lived intangible assets for impairment under ASC 350. These factors included a decline in the market price of the Company’s common stock and changes in key assumptions from the prior year’s annual goodwill assessment resulting from lower-than-expected operating results during the first half of 2025. As a result, the estimated fair values of the Company’s PCS and Monitoring reporting units were below their respective carrying amounts, and the Company recognized goodwill impairment charges accordingly. In performing its impairment analysis, the Company also incorporated factors and assumptions that existed as of the testing date and that were related to the Company’s subsequent Chapter 11 bankruptcy filing since those conditions were known or knowable as of the testing date.

As a result, the Company performed a quantitative assessment and determined that the goodwill at its PCS and Monitoring reporting units was impaired. As such, during the second quarter of 2025, the Company recorded a non-cash goodwill impairment charge of $263.4 million, of which $211.8 million was recorded in the PCS reporting unit and $51.6 million was recorded in the Monitoring reporting unit. This impairment is recorded in “Impairment of goodwill” on the Company’s unaudited condensed consolidated statement of operations.

During the second quarter of 2024, the Company determined that based on its qualitative assessment for each reporting unit, factors existed which required the Company to test its goodwill and indefinite-lived intangible assets for impairment. These factors included changes in key assumptions from the prior year annual goodwill assessment as a result of lower than anticipated operating results during the first half of 2024 as compared to forecast which resulted in a decrease in the fair value of the Company's Monitoring reporting unit such that the fair value was less than its carrying value. As a result, during the second quarter of 2024, the Company recorded a non-cash goodwill impairment charge of $105.3 million in the Monitoring reporting unit.

After recording the respective impairment of goodwill charges during the second quarters of 2025 and 2024, respectively, the associated reporting units had a combined $281.6 million of goodwill remaining as of June 30, 2025 and $545.0 million as of December 31, 2024. If, among other factors, (i) the Company's equity values were to decline significantly, (ii) the Company experienced additional adverse impacts associated with macroeconomic factors, including increases in the estimated weighted average cost of capital, or (iii) the adverse impacts stemming from competition, economic, regulatory or other factors were to cause the Company's results of operations or cash flows to be worse than currently anticipated, the Company could conclude in future periods that additional impairment charges of certain reporting units are required in order to reduce the carrying values of goodwill. Any such impairment charges could be significant.


	NEMT		PCS		Monitoring		Corporate and Other		Total
Goodwill balance as of December 31, 2023, before cumulative loss	$	231,186	$	552,775	$	280,663	$	30	$	1,064,654
Accumulated loss on impairment	(96,000)		(137,331)		(45,769)		—		(279,100)
Goodwill balance as of December 31, 2023, after cumulative loss	135,186		415,444		234,894		30		785,554
Impairment of goodwill	—		—		(105,302)		—		(105,302)
Balance at June 30, 2024 and December 31, 2024	135,186		415,444		129,592		30		680,252
Impairment of goodwill	—		(211,780)		(51,614)		—		(263,394)
Balance at June 30, 2025	$	135,186	$	203,664	$	77,978	$	30	$	416,858

Intangible assets are comprised of acquired payor networks, trademarks and trade names, developed technology, non-compete agreements, licenses, and an assembled workforce. Finite-lived intangible assets are amortized using the straight-line method over the estimated economic lives of the assets. These finite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Indefinite-lived intangible assets are not amortized, but are tested for impairment annually and more frequently if events occur or circumstances change that indicate an asset may be impaired. Based on the continued value of the definite-lived and indefinite-lived intangible assets acquired, the Company did not identify any circumstances during the three and six months ended June 30, 2025 that would require an impairment test for the intangible assets.