DocGo Inc.DCGO
DocGo Inc. Leases Disclosure
Leases
Lease Terms and Discount Rate
The Company has lease arrangements for properties, vehicles and transportation equipment. Certain leases contain options to purchase, extend or terminate the lease. Determining the lease term and amount of lease payments to include in the calculation of the right-of-use asset and lease obligations for leases containing options requires the use of judgment to determine whether the exercise of an option is reasonably certain and whether the optional period and payments should be included in the calculation of the associated right-of-use asset and lease obligation. In making such determination, the Company considers all relevant economic factors.
The Company’s lease agreements generally do not provide an implicit borrowing rate. Therefore, the Company used a benchmark approach to derive an appropriate imputed discount rate. The Company benchmarked itself against other companies of similar credit ratings and comparable quality and derived imputed rates, which were used to discount its real estate lease liabilities. The Company used estimated borrowing rates of 6% on January 1, 2019 for all leases that commenced prior to that date for office spaces, vehicles and transportation equipment.
Lease Costs
The table below comprises lease expenses for the years ended December 31, 2025, 2024 and 2023, respectively:
| Year Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Components of total lease cost: | ||||||||||||||||||||
| Operating lease expense | $ | 5,391,278 | $ | 3,851,686 | $ | 3,418,134 | ||||||||||||||
| Finance lease expense: | ||||||||||||||||||||
| Amortization of right-of-use assets | 5,216,009 | 4,617,262 | 6,352,754 | |||||||||||||||||
| Interest on lease liabilities | 958,553 | 769,041 | 600,239 | |||||||||||||||||
| Finance lease expense | 6,174,562 | 5,386,303 | 6,952,993 | |||||||||||||||||
| Short-term lease expense | 820,215 | 2,580,933 | 1,678,487 | |||||||||||||||||
| Total lease cost | $ | 12,386,055 | $ | 11,818,922 | $ | 12,049,614 | ||||||||||||||
Lease Payments
The table below comprises lease payments for the years ended December 31, 2025, 2024 and 2023, respectively:
| Year Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Components of total lease payments: | ||||||||||||||||||||
| Operating lease payments | $ | 5,131,291 | $ | 3,711,545 | $ | 3,287,125 | ||||||||||||||
| Finance lease payments | 5,385,581 | 4,334,463 | 4,270,553 | |||||||||||||||||
| Total lease payments | $ | 10,516,872 | $ | 8,046,008 | $ | 7,557,678 | ||||||||||||||
Operating Leases
The Company is obligated to make rental payments under non-cancellable operating leases for office, dispatch station space and transportation equipment, expiring at various dates through 2034. Under the terms of the leases, the Company is also obligated for its proportionate share of real estate taxes, insurance and maintenance costs of the property.
Gain (Loss) on Lease Remeasurement
During the year, the Company reassessed the use of some office spaces, resulting in the early termination of leased office spaces. The Company recorded a gain from remeasurement of operating lease of $656, a loss of $(13,469), and a gain of $4,566 for the years ended December 31, 2025, 2024 and 2023, respectively.
Sublease Income
During the year ended December 31, 2025, the Company subleased a portion of its corporate office space in New York, NY. The sublease entered into has a lease term of one year and four months and has been classified as an operating lease by the Company. Sublease income was $326,205, $9,373, and $0 for the years ended December 31, 2025, 2024 and 2023, respectively. The Company continues to sublease its office space in Houston, TX. The sublease was entered in 2023, has a lease term of three years and has been classified as an operating lease by the Company. Sublease income was $77,762, $75,931, and $12,580 for the years ended December 31, 2025, 2024 and 2023, respectively. The Company used to sublease its office in Colorado and the lease term ended in February 2023. Sublease income was $8,522 for the year ended December 31, 2023. The Company recognizes sublease income as rental income, presented in the Company’s Consolidated Statements of Operations and Comprehensive (Loss) Income under other (expense) income.
Lease Position as of December 31, 2025 and 2024
Right-of-use lease assets and lease liabilities for the Company’s operating leases were recorded in the Consolidated Balance Sheets as follows:
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Assets | |||||||||||
| Lease right-of-use assets | $ | 11,520,781 | $ | 11,958,698 | |||||||
| Total lease assets | $ | 11,520,781 | $ | 11,958,698 | |||||||
| Liabilities | |||||||||||
| Current liabilities: | |||||||||||
| Lease liability - current portion | $ | 4,650,953 | $ | 3,844,561 | |||||||
| Noncurrent liabilities: | |||||||||||
| Lease liability, net of current portion | 7,563,664 | 8,599,072 | |||||||||
| Total lease liability | $ | 12,214,617 | $ | 12,443,633 | |||||||
The table below presents certain information related to the weighted average remaining lease term and the weighted average discount rate for the Company’s operating leases as of December 31, 2025:
| Weighted average remaining lease term (in years) - operating leases | 3.08 | ||||
| Weighted average discount rate - operating leases | 5.96 | % | |||
Undiscounted Cash Flows
Future minimum lease payments under the operating leases as of December 31, 2025 are as follows:
| Operating Leases | |||||
| 2026 | $ | 5,252,299 | |||
| 2027 | 3,723,164 | ||||
| 2028 | 2,735,201 | ||||
| 2029 | 1,355,260 | ||||
| 2030 | 153,941 | ||||
| Thereafter | 208,043 | ||||
| Total future minimum lease payments | 13,427,908 | ||||
| Less effects of discounting | (1,213,291) | ||||
| Present value of future minimum lease payments | $ | 12,214,617 | |||
Finance Leases
The Company leases vehicles under non-cancelable finance lease agreements with a liability of $16,727,594 and $14,725,605 as of December 31, 2025 and 2024, respectively, and a right-of-use net of $17,420,424 and $15,337,299 as of
December 31, 2025 and 2024, respectively (accumulated depreciation of $11,739,994 and $9,128,202 as of December 31, 2025 and 2024, respectively).
Loss on Lease Remeasurement
During the year, the Company returned a number of leased vehicles, resulting in the termination of contract of these leased vehicles. The Company recorded a loss on remeasurement of finance lease of $43,023, $18,894 and $5,432 during the years ended December 31, 2025, 2024 and 2023, respectively.
Lease Position as of December 31, 2025 and 2024
Right-of-use lease assets and lease liabilities for the Company’s finance leases were recorded in the Consolidated Balance Sheets as follows:
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Assets | |||||||||||
| Lease right-of-use assets | $ | 17,420,424 | $ | 15,337,299 | |||||||
| Total lease assets | $ | 17,420,424 | $ | 15,337,299 | |||||||
| Liabilities | |||||||||||
| Current liabilities: | |||||||||||
| Lease liability - current portion | $ | 5,509,687 | $ | 4,694,467 | |||||||
| Noncurrent liabilities: | |||||||||||
| Lease liability, net of current portion | 11,217,907 | 10,031,138 | |||||||||
| Total lease liability | $ | 16,727,594 | $ | 14,725,605 | |||||||
Lease Terms and Discount Rate
The table below presents certain information related to the weighted average remaining lease term and the weighted average discount rate for the Company’s finance leases as of December 31, 2025:
| Weighted average remaining lease term (in years) - finance leases | 3.37 | |||||||
| Weighted average discount rate - finance leases | 5.90 | % | ||||||
Undiscounted Cash Flows
Future minimum lease payments under the finance leases as of December 31, 2025 are as follows:
| Finance Leases | |||||
| 2026 | $ | 6,348,226 | |||
| 2027 | 5,213,744 | ||||
| 2028 | 3,931,548 | ||||
| 2029 | 2,288,850 | ||||
| 2030 | 736,100 | ||||
| Thereafter | — | ||||
| Total future minimum lease payments | 18,518,468 | ||||
| Less effects of discounting | (1,790,874) | ||||
| Present value of future minimum lease payments | $ | 16,727,594 | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 16, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Mar 14, 2023 | |
| 2021 | Mar 15, 2022 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.