Condensed Financial Information of Registrant (Parent Company Only)

12 Months Ended

Dec. 31, 2023

Condensed Financial Information Disclosure [Abstract]

Condensed Financial Information of Registrant (Parent Company Only)

Sterling Check Corp. (Parent Company Only)

Condensed Balance Sheets


	December 31,
(in thousands, except share and par value amounts)	2023		2022
ASSETS
Cash and cash equivalents	$	1,061	$	11
Investment in subsidiaries of Parent	700,883		736,635
Total assets	$	701,944	$	736,646
LIABILITIES AND STOCKHOLDERS’ EQUITY
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY:
Preferred stock ($0.01 par value; 100,000,000 shares authorized; no shares issued or outstanding)	—		—
Common stock ($0.01 par value; 1,000,000,000 shares authorized; 99,966,158 shares issued and 93,194,403 shares outstanding as of December 31, 2023; 97,765,120 shares issued and 96,717,883 shares outstanding as of December 31, 2022)	98		76
Additional paid-in capital	983,283		942,789
Common stock held in treasury (6,771,755 shares and 1,047,237 shares as of December 31, 2023 and 2022, respectively)	(88,918)		(14,859)
Accumulated deficit	(186,564)		(186,448)
Accumulated other comprehensive loss	(5,955)		(4,912)
Total stockholders’ equity	701,944		736,646
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	701,944	$	736,646

Sterling Check Corp. (Parent Company Only)

Condensed Statements of Operations and Comprehensive Income (Loss)


	Year Ended December 31,
(in thousands, except share and per share data)	2023		2022		2021
Equity in net (loss) income of subsidiaries	$	(116)	$	19,410	$	(18,527)
NET (LOSS) INCOME	(116)		19,410		(18,527)
Subsidiaries’ other comprehensive loss	(1,043)		(5,005)		(964)
COMPREHENSIVE (LOSS) INCOME	$	(1,159)	$	14,405	$	(19,491)

Net (loss) income per share attributable to stockholders
Basic	$	0.00	$	0.21	$	(0.21)
Diluted	$	0.00	$	0.20	$	(0.21)
Weighted average number of shares outstanding—basic and diluted
Basic	91,587,311		94,052,435		90,218,386
Diluted	91,587,311		98,866,004		90,218,386

A condensed statement of cash flows has not been presented as Sterling Check Corp. (the Parent) had no material operating, investing, or financing cash flow activities for the years ended December 31, 2023, 2022 and 2021.

Basis of Presentation

These condensed parent company-only financial statements have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X, as the restricted net assets of the subsidiaries of the Parent (as defined in Rule 4-08(e)(3) of Regulation S-X) exceed 25% of the consolidated net assets of the Parent. The ability of the Parent’s operating subsidiaries to pay dividends may be restricted due to the terms of the 2022 Credit Agreement, as described in Note 9, “Debt” to the audited consolidated financial statements.

These condensed parent company financial statements have been prepared using the same accounting principles and policies described in the notes to the consolidated financial statements, with the only exception being that the parent company accounts for its subsidiaries using the equity method. These condensed financial statements should be read in conjunction with the audited consolidated financial statements and related notes thereto.