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Pacific Health Care Organization (PFHO-0.89%), Inc. has submitted its Form 10-K filing for the fiscal year ended December 31, 2024.
The filing details the company's operations as a workers' compensation cost containment specialist, providing services primarily in California. The company operates through its wholly-owned subsidiaries, including Medex Healthcare, Inc., Medex Managed Care, Inc., and Medex Medical Management, Inc.
Total revenues for the fiscal year 2024 increased by 8% compared to 2023, amounting to $6,065,390. The increase was driven by higher revenues from medical provider networks (MPN), medical bill review, utilization review, and medical case management services.
Operating expenses rose by 5% in 2024, primarily due to increases in salaries and wages, professional fees, and general and administrative expenses. Despite the increase in expenses, income from operations grew by 26% year-over-year.
Net income for the year was $883,584, reflecting a 15% increase from the previous year. Basic and fully diluted earnings per share were $0.07, compared to $0.06 in 2023.
The company reported a working capital of $12,335,274 as of December 31, 2024, with cash and cash equivalents totaling $2,070,476. Investments in U.S. Treasury bills amounted to $9,033,761.
The filing also notes a material weakness in internal control over financial reporting related to the identification and recording of loan amounts payable and accounting for dividends paid. The company has implemented remediation efforts to address these issues.
Pacific Health Care Organization continues to focus on expanding its services and customer base, with a particular emphasis on its employee advocate services, which have been extended to six states outside of California.
The company acknowledges its dependence on a few significant customers, with three major customers accounting for 43% of total sales in 2024. The loss of one or more significant customers could materially impact future revenues.
The filing includes a discussion of potential risks, including competition, regulatory changes, and cybersecurity threats, which could affect the company's operations and financial performance.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Pacific Health Care Organization annual 10-K report dated March 19, 2025. To report an error, please email earnings@qz.com.