EX-99.1 2 ea022070901ex99-1_marpai.htm PRESS RELEASE OF MARPAI, INC. DATED NOVEMBER 11, 2024

Exhibit 99.1 

 

 

MARPAI reports Third QUARTER 2024 financial results

 

Turnaround continues to gain traction

 

Tampa, November 11, 2024, Marpai, Inc. (“Marpai” or the “Company”) (OTCQX: MRAI), a technology platform company, which operates as a national Third-Party Administrator (TPA) through its subsidiaries and is transforming the $22 billion TPA market by offering affordable, intelligent, healthcare solutions to self-funded employer health plans, announced financial results for the third quarter of 2024. The Company expects to hold a webcast to discuss the results on November 12, 2024.

 

Q3 2024 Financial Highlights:

 

Net revenues were approximately $7.0 million for the three months ended September 30, 2024, down $1.7 million, or 20% lower year over year, compared to the three months ended September 30, 2023.

 

Operating expenses were $10.1 million for the three months ended September 30, 2024, down $5.7 million, or 36% lower year over year compared to the three months ended September 30, 2023.

 

Operating loss was $3.1 million for the three months ended September 30, 2024, lower by $4.0 million, or 57% lower year over year compared to the three months ended September 30, 2023.

 

Net loss was $3.6 million for the three months ended September 30, 2024, lower by $3.7 million, or 51% lower year over year compared to the three months ended September 30, 2023.

 

Basic and diluted earnings per share were ($0.30) for the three months ended September 30, 2024, up $0.68 per share year over year compared to the three months ended September 30, 2023.

 

“As you can see from our highlights, we continue to make strong progress with our turnaround efforts. Our goal remains profitability and positive cash flow,” said Damien Lamendola, Chief Executive Officer of Marpai. “We have some exciting developments that we will be announcing in the fourth quarter.”

 

Webcast and Conference Call Information

 

Marpai expects to host a conference call and webcast on Tuesday, November 12, 2024, at 8:30 a.m. ET to review the Company’s operational and financial highlights for its third quarter ended September 30, 2024.

 

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/Jd298rR8DBe

 

 

 

 

 

About Marpai, Inc.

 

Marpai, Inc. (OTCQX: MRAI) is a technology platform company which operates subsidiaries that provide TPA and value-oriented health plan services to employers that directly pay for employee health benefits. Primarily competing in the $22 billion TPA sector serving self-funded employer health plans representing over $1 trillion in annual claims. Through its Marpai Saves initiative, the Company works to deliver the healthiest member population for the health plan budget. Operating nationwide, Marpai offers access to leading provider networks including Aetna and Cigna and all TPA services. For more information, visit www.marpaihealth.com, the content of which is not incorporated by reference into this press release. Investors are invited to visit https://www.ir.marpaihealth.com. Investor Relations contact: Steve Johnson steve.johnson@marpaihealth.com

 

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 that it continues to make strong progress with its turnaround efforts, that its goal remains profitability and positive cash flow and that it expects to have some exciting developments that it will be announcing in the fourth quarter. 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 Marpai’s current expectations depending upon a number of factors. These factors include, among others, adverse changes in general economic and market conditions, competitive factors including but not limited to pricing pressures and new product introductions, uncertainty of customer acceptance of new product offerings and market changes, risks associated with managing the growth of the business. Except as required by law, Marpai does not undertake any responsibility to revise or update any forward-looking statements whether as a result of new information, future events or otherwise.

 

More detailed information about Marpai and the risk factors that may affect the realization of forward-looking statements is set forth in Marpai’s filings with the Securities and Exchange Commission. Investors and security holders are urged to read these documents free of charge on the SEC’s web site at http://www.sec.gov.

 

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MARPAI, INC. AND SUBSIDIARES

CONDENSED CONSOLIDATED BALANCE SHEET

(in thousands, except share and per share data)

(Unaudited)

 

   September 30,
2024
  December 31,
2023
       
ASSETS:      
Current assets:      
Cash and cash equivalents  $830   $1,147 
Restricted cash   10,978    12,345 
Accounts receivable, net of allowance for credit losses of $0 and $25   1,228    1,124 
Unbilled receivable   579    768 
   Due from buyer for sale of business unit   500    800 
Prepaid expenses and other current assets   771    901 
Total current assets   14,886    17,085 
           
Property and equipment, net   514    611 
Capitalized software, net   752    2,127 
Operating lease right-of-use assets   2,192    2,373 
Goodwill       3,018 
Intangible assets, net       5,177 
Security deposits   1,248    1,267 
Other long-term asset   15    22 
Total assets  $19,607   $31,680 
LIABILITIES AND STOCKHOLDERS’  (DEFICIT) EQUITY          
Current liabilities:          
Accounts payable  $3,764   $4,649 
Accrued expenses   2,957    2,816 
Accrued fiduciary obligations   7,969    11,573 
Deferred revenue   1,390    661 
Current portion of operating lease liabilities   559    512 
Current portion of convertible debenture, net   1,540     
Other short-term liabilities       632 
Total current liabilities   18,179    20,843 
           
Other long-term liabilities   20,467    19,401 
Convertible debenture, net of current portion   4,072     
Operating lease liabilities, net of current portion   3,257    3,684 
Deferred tax liabilities   1,190    1,190 
Total liabilities   47,165    45,118 
COMMITMENTS AND CONTINGENCIES          
STOCKHOLDERS’ (DEFICIT) EQUITY          
Common stock, $0.0001 par value, 227,791,050 shares authorized; 13,747,982 shares and 7,960,938 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively   1    1 
Additional paid-in capital   70,119    63,307 
Accumulated deficit   (97,678)   (76,746)
Total stockholders’ (deficit) equity   (27,558)   (13,438)
Total liabilities and stockholders’ (deficit) equity  $19,607   $31,680 

 

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MARPAI, INC. AND SUBSIDIARES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share data)

(Unaudited)

 

   Three Months Ended
   September 30,
2024
  September 30,
2023
Revenue  $7,008   $8,729 
Costs and expenses          
Cost of revenue (exclusive of depreciation and amortization shown separately below)   5,033    5,691 
General and administrative   2,813    4,986 
Sales and marketing   345    1,842 
Information technology   1,273    1,269 
Research and development   7    267 
Depreciation and amortization   213    927 
Loss on disposal of assets       7 
Loss on sale of business unit   73     
Facilities   311    769 
Total costs and expenses   10,068    15,758 
Operating loss   (3,060)   (7,029)
Other income (expenses)          
Other income   119    130 
Interest expense, net   (620)   (383)
Foreign exchange (loss) gain   1    (14)
Loss before provision for income taxes   (3,560)   (7,296)
Income tax expense        
Net loss  $(3,560)  $(7,296)
Net loss per share, basic & fully diluted  $(0.30)  $(0.98)
Weighted average common shares outstanding, basic and diluted   12,043,931    7,479,401 

 

 

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MARPAI, INC. AND SUBSIDIARES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share data)

(Unaudited)

 

   Nine Months Ended
   September 30,
2024
  September 30,
2023
Revenue  $21,582   $28,448 
Costs and expenses          
Cost of revenue (exclusive of depreciation and amortization shown separately below)   15,078    18,530 
General and administrative   9,954    15,938 
Sales and marketing   1,383    5,494 
Information technology   3,608    4,775 
Research and development   22    1,291 
Depreciation and amortization   2,078    2,974 
Impairment of goodwill and intangible assets   7,588     
Loss on disposal of assets       350 
Loss on sale of business unit   73     
Facilities   1,197    1,918 
Total costs and expenses   40,981    51,270 
Operating loss   (19,399)   (22,822)
Other income (expenses)          
Other income   360    231 
Interest expense, net   (1,890)   (1,102)
Foreign exchange (loss) gain   (3)   (32)
Loss before provision for income taxes   (20,932)   (23,725)
Income tax expense        
Net loss  $(20,932)  $(23,725)
Net loss per share, basic & fully diluted  $(1.96)  $(3.62)
Weighted average common shares outstanding, basic and diluted   10,697,008    6,552,575 

 

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MARPAI, INC. AND SUBSIDIARES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands, except share and per share data)

(Unaudited)

  

   Nine Months Ended
   September 30,
2024
  September 30,
2023
Cash flows from operating activities:      
Net loss  $(20,932)  $(23,725)
Adjustments to reconcile net loss to net cash used in operating activities:          
Depreciation and amortization   2,078    2,974 
Loss on disposal of assets   —     350 
Loss on sale of receivables   306    —  
Share-based compensation   2,786    1,837 
Loss on sale of business unit   73    —  
Common Stock issued to vendors in exchange for services       79 
Amortization of right-of-use asset   181    1,289 
Gain on termination of lease       33 
Impairment of goodwill and intangible assets   7,588    —  
Non-cash interest   975    1,204 
Amortization of debt discount and debt issuance costs   128    —  
Changes in operating assets and liabilities:          
Accounts receivable and unbilled receivable   85    639 
Prepaid expense and other assets   136    216 
Due from buyer for sale of business unit   227    —  
Security deposit   19    (16)
Accounts payable   (885)   336 
Accrued expenses   141    (693)
Accrued fiduciary obligations   (3,604)   853 
Operating lease liabilities   (380)   (1,670)
Due To related party       (3)
Other liabilities   827    973 
Net cash used in operating activities   (10,251)   (15,324)
Cash flows from investing activities:          
Disposal of property and equipment       27 
Net cash provided by (used in) investing activities       27 
Cash flows from financing activities:          
Proceeds from issuance of common stock in a public offering, net       6,432 
Proceeds from sale of future cash receipts on accounts receivable   1,509     
Proceeds from issuance of convertible debentures   5,978     
Payments of convertible debenture issuance costs   (499)    
Payments to buyer of receivables   (1,816)    
Payments to seller for acquisition   (631)    
Proceeds from issuance of common stock in a private offering, net   4,026     
Net cash provided by financing activities   8,567    6,432 
           
Net decrease in cash, cash equivalents and restricted cash   (1,684)   (8,865)
           
Cash, cash equivalents and restricted cash at beginning of period   13,492    23,117 
Cash, cash equivalents and restricted cash at end of period  $11,808   $14,252 
           
Reconciliation of cash, cash equivalents, and restricted cash reported in the condensed consolidated balance sheet          
Cash and cash equivalents  $830   $3,018 
Restricted cash   10,978    11,234 
Total cash, cash equivalents and restricted cash shown in the condensed  consolidated statement of cash flows  $11,808   $14,252 
Supplemental disclosure of cash flow information          
Cash paid for interest  $1,508   $ 
Supplemental disclosure of non-cash activity          
Measurement period adjustment to Goodwill  $   $198 

 

 

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