MARPAI REPORTS SECOND QUARTER 2024 FINANCIAL RESULTS
Company continues to drive towards profitability
Q2 2024 Financial Highlights:
- Net revenues were approximately
$7.2 million for the three months endedJune 30, 2024 , down$2.9 million , or 28% lower year over year, compared to the three months endedJune 30, 2023 . - Operating expenses were
$14.3 million for the three months endedJune 30, 2024 (including a charge for the impairment of goodwill and intangibles of$7.6 million ), higher by$3.4 million , or 32% higher year over year compared to the three months endedJune 30, 2023 . - Operating loss was
$12.3 million for the three months endedJune 30, 2024 , higher by$5.0 million , or 69% higher year over year compared to the three months endedJune 30, 2023 . - Net loss was
$13.0 million for the three months endedJune 30, 2024 , higher by$5.5 million , or 72% higher year over year compared to the three months endedJune 30, 2023 . - Basic and diluted earnings per share were (
$1.23 ) for the three months endedJune 30, 2024 , down ($0.13 ) per share year over year compared to the three months endedJune 30, 2023 .
"The Company continues to show progress towards our goal of profitability," said
Webcast and Conference Call Information
Investors interested in listening to the conference call may do so by dialing (800)-836-8184 for domestic callers or +1-646-357-8785 for international callers, or via webcast: https://app.webinar.net/lrwPxYJnvpY
About
Forward-Looking Statement Disclaimer
This press release contains forward-looking statements, as that term is defined in the Private Litigation Reform Act of 1995, that involve significant risks and uncertainties. Forward-looking statements can be identified through the use of words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," "guidance," "may," "can," "could", "will", "potential", "should," "goal" and variations of these words or similar expressions. For example, the Company is using forward looking statements when it discusses the Q1 2025 sales pipeline and the expected timing of its highlighting of its pipeline. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect Marpai's current expectations and speak only as of the date of this release. Actual results may differ materially from
More detailed information about
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CONDENSED CONSOLIDATED BALANCE SHEET |
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(in thousands, except share and per share data) |
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(Unaudited) |
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|
|
|
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ASSETS: |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$ 1,293 |
|
$ 1,147 |
Restricted cash |
|
12,762 |
|
12,345 |
Accounts receivable, net of allowance for credit losses of |
|
805 |
|
1,124 |
Unbilled receivable |
|
568 |
|
768 |
Due from buyer for sale of business unit |
|
800 |
|
800 |
Prepaid expenses and other current assets |
|
967 |
|
901 |
Total current assets |
|
17,195 |
|
17,085 |
|
|
|
|
|
Property and equipment, net |
|
546 |
|
611 |
Capitalized software, net |
|
933 |
|
2,127 |
Operating lease right-of-use assets |
|
2,253 |
|
2,373 |
|
|
— |
|
3,018 |
Intangible assets, net |
|
— |
|
5,177 |
Security deposits |
|
1,267 |
|
1,267 |
Other long-term asset |
|
22 |
|
22 |
Total assets |
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$ 22,216 |
|
$ 31,680 |
LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY |
|
|
|
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Current liabilities: |
|
|
|
|
Accounts payable |
|
$ 3,172 |
|
$ 4,649 |
Accrued expenses |
|
2,643 |
|
2,816 |
Accrued fiduciary obligations |
|
9,948 |
|
11,573 |
Deferred revenue |
|
1,295 |
|
661 |
Current portion of operating lease liabilities |
|
541 |
|
512 |
Current portion of convertible debenture, net |
|
1,089 |
|
— |
Other short-term liabilities |
|
— |
|
632 |
Total current liabilities |
|
18,688 |
|
20,843 |
|
|
|
|
|
Other long-term liabilities |
|
20,144 |
|
19,401 |
Convertible debenture, net of current portion |
|
4,451 |
|
— |
Operating lease liabilities, net of current portion |
|
3,405 |
|
3,684 |
Deferred tax liabilities |
|
1,190 |
|
1,190 |
Total liabilities |
|
47,878 |
|
45,118 |
COMMITMENTS AND CONTINGENCIES |
|
|
|
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STOCKHOLDERS' (DEFICIT) EQUITY |
|
|
|
|
Common stock, |
|
1 |
|
1 |
Additional paid-in capital |
|
68,455 |
|
63,307 |
Accumulated deficit |
|
(94,118) |
|
(76,746) |
Total stockholders' (deficit) equity |
|
(25,662) |
|
(13,438) |
Total liabilities and stockholders' (deficit) equity |
|
$ 22,216 |
|
$ 31,680 |
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
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(in thousands, except share and per share data) |
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(Unaudited) |
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|
|
Three Months Ended |
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|
|
|
|
|
Revenue |
|
$ 7,189 |
|
$ 10,047 |
Costs and expenses |
|
|
|
|
Cost of revenue (exclusive of depreciation and amortization |
|
5,174 |
|
6,430 |
General and administrative |
|
3,721 |
|
5,725 |
Sales and marketing |
|
436 |
|
1,473 |
Information technology |
|
1,210 |
|
1,319 |
Research and development |
|
8 |
|
523 |
Depreciation and amortization |
|
914 |
|
1,003 |
Impairment of goodwill and intangible assets |
|
7,588 |
|
— |
Loss on disposal of assets |
|
— |
|
344 |
Facilities |
|
411 |
|
500 |
Total costs and expenses |
|
19,462 |
|
17,317 |
Operating loss |
|
(12,273) |
|
(7,270) |
Other income (expenses) |
|
|
|
|
Other income |
|
120 |
|
50 |
Interest expense, net |
|
(872) |
|
(333) |
Foreign exchange (loss) gain |
|
(1) |
|
(3) |
Loss before provision for income taxes |
|
(13,026) |
|
(7,556) |
Income tax expense |
|
— |
|
— |
Net loss |
|
$ (13,026) |
|
$ (7,556) |
Net loss per share, basic & fully diluted |
|
$ (1.23) |
|
$ (1.10) |
Weighted average common shares outstanding, basic and
|
|
10,626,516 |
|
6,844,778 |
|
|
|
|
|
|
|
|
|
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
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(in thousands, except share and per share data) |
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(Unaudited) |
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|
|
Six Months Ended |
||
|
|
|
|
|
Revenue |
|
$ 14,574 |
|
$ 19,719 |
Costs and expenses |
|
|
|
|
Cost of revenue (exclusive of depreciation and amortization |
|
10,045 |
|
12,838 |
General and administrative |
|
7,142 |
|
10,951 |
Sales and marketing |
|
1,038 |
|
3,652 |
Information technology |
|
2,334 |
|
3,506 |
Research and development |
|
15 |
|
1,024 |
Depreciation and amortization |
|
1,865 |
|
2,047 |
Impairment of goodwill and intangible assets |
|
7,588 |
|
— |
Loss on disposal of assets |
|
— |
|
344 |
Facilities |
|
885 |
|
1,150 |
Total costs and expenses |
|
30,912 |
|
35,512 |
Operating loss |
|
(16,338) |
|
(15,793) |
Other income (expenses) |
|
|
|
|
Other income |
|
240 |
|
101 |
Interest expense, net |
|
(1,270) |
|
(718) |
Foreign exchange (loss) gain |
|
(4) |
|
(19) |
Loss before provision for income taxes |
|
(17,372) |
|
(16,429) |
Income tax expense |
|
— |
|
— |
Net loss |
|
$ (17,372) |
|
$ (16,429) |
Net loss per share, basic & fully diluted |
|
$ (1.73) |
|
$ (2.70) |
Weighted average common shares outstanding, basic and
|
|
10,016,146 |
|
6,080,200 |
|
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
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(in thousands, except share and per share data) |
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(Unaudited) |
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|
|
Three Months Ended |
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|
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|
|
|
Cash flows from operating activities: |
|
|
|
|
Net loss |
|
$ (17,372) |
|
$ (16,429) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
Depreciation and amortization |
|
1,865 |
|
2,046 |
Loss on disposal of assets |
|
— |
|
344 |
Loss on sale of receivables |
|
306 |
|
— |
Share-based compensation |
|
2,421 |
|
990 |
Shares issued to vendors in exchange for services |
|
— |
|
79 |
Amortization of right-of-use asset |
|
120 |
|
1,049 |
Gain on termination of lease |
|
— |
|
33 |
Impairment of goodwill and intangible assets |
|
7,588 |
|
— |
Non-cash interest |
|
646 |
|
776 |
Amortization of debt discount |
|
62 |
|
— |
Changes in operating assets and liabilities: |
|
|
|
|
Accounts receivable and unbilled receivable |
|
519 |
|
74 |
Prepaid expense and other assets |
|
(66) |
|
425 |
Security deposit |
|
— |
|
(14) |
Accounts payable |
|
(1,477) |
|
729 |
Accrued expenses |
|
(173) |
|
(235) |
Accrued fiduciary obligations |
|
(1,625) |
|
1,713 |
Operating lease liabilities |
|
(250) |
|
(1,343) |
Due To related party |
|
— |
|
(4) |
Other liabilities |
|
731 |
|
1,028 |
Net cash used in operating activities |
|
(6,705) |
|
(8,739) |
Cash flows from investing activities: |
|
|
|
|
Disposal of property and equipment |
|
— |
|
18 |
Net cash provided by (used in) investing activities |
|
— |
|
18 |
Cash flows from financing activities: |
|
|
|
|
Proceeds from issuance of common stock in a public offering, net |
|
— |
|
6,432 |
Proceeds from stock options exercises |
|
1,509 |
|
— |
Proceeds from issuance of convertible debentures |
|
5,978 |
|
— |
Payments of convertible debenture issuance costs |
|
(499) |
|
— |
Payments to buyer of receivables |
|
(1,816) |
|
— |
Proceeds from issuance of common stock in a public offering, net |
|
(631) |
|
— |
Proceeds from issuance of common stock in a private offering, net |
|
2,727 |
|
— |
Net cash provided by financing activities |
|
7,268 |
|
6,432 |
|
|
|
|
|
Net decrease in cash, cash equivalents and restricted cash |
|
563 |
|
(2,289) |
|
|
|
|
|
Cash, cash equivalents and restricted cash at beginning of period |
|
13,492 |
|
23,117 |
Cash, cash equivalents and restricted cash at end of period |
|
$ 14,055 |
|
$ 20,828 |
|
|
|
|
|
Reconciliation of cash, cash equivalents, and restricted cash reported in
|
|
|
|
|
Cash and cash equivalents |
|
$ 1,293 |
|
$ 8,726 |
Restricted cash |
|
12,762 |
|
12,102 |
Total cash, cash equivalents and restricted cash shown in the condensed
|
|
$ 14,055 |
|
$ 20,828 |
Supplemental disclosure of cash flow information |
|
|
|
|
Cash paid for interest |
|
$ 1,259 |
|
$ — |
Supplemental disclosure of non-cash activity |
|
|
|
|
Measurement period adjustment to |
|
$ — |
|
$ 198 |
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