MARPAI REPORTS THIRD QUARTER 2024 FINANCIAL RESULTS

Turnaround continues to gain traction

TAMPA, Fla., Nov. 11, 2024 /PRNewswire/ -- 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.

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.

MARPAI, INC. AND SUBSIDIARIES 

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

 

MARPAI, INC. AND SUBSIDIARIES 

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

 

MARPAI, INC. AND SUBSIDIARIES 

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

 

MARPAI, INC. AND SUBSIDIARIES 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands, except share and per share data)

(Unaudited)



Nine Months Ended



September 30, 2024


30-Sep-23

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

 

(PRNewsfoto/Marpai)

SOURCE Marpai

For further information: Investor Relations contact: Steve Johnson steve.johnson@marpaihealth.com