MARPAI REPORTS THIRD QUARTER 2024 FINANCIAL RESULTS
PR Newswire
TAMPA, Fla., Nov. 11, 2024
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)
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