MTBC, Inc. (MTBC) Q4 2020 Earnings Conference Call February 25, 2021 8:30 AM ET Company Participants Kim Blanche - General Counsel and VP Compliance Mahmud Haq - Founder and Executive Chairman Stephen Snyder - Chief Executive Officer, Director Hadi Chaudhry - President and Director Bill Korn - Chief Financial Officer Karl Johnson - Chief Growth Officer Juan Molina - Divisional President Conference Call Participants Jeffrey Cohen - Ladenburg Thalmann Marc Wiesenberger - B. Riley Securities Allen Klee - Maxim ...

Q4 and Full Year 2020 Results A leading healthcare technology company with a complete suite of proprietary, cloudbased solutions for healthcare providers NASDAQ Global Market: MTBC, MTBCP Safe Harbor Statements This presentation contains forward-looking statements within the meaning of the federal securities laws. These statements relate to anticipated future events, future results of operations or future financial performance. In some cases, you can identify forward-looking statements by terminology such a ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark one) [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 or [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-36529 MTBC, Inc. (Exact name of registrant as specified in its charter) Delaware 22-3832302 (State or other jurisdiction of inco ...

November 2020 Investor Presentation A leading healthcare technology company with a complete suite of proprietary, cloudbased solutions for healthcare providers NASDAQ Global Market: MTBC, MTBCP Safe Harbor Statements This presentation contains forward-looking statements within the meaning of the federal securities laws. These statements relate to anticipated future events, future results of operations or future financial performance. In some cases, you can identify forward-looking statements by terminology ...

MTBC, Inc. (MTBC) Q3 2020 Earnings Conference Call November 9, 2020 8:30 AM ET Company Participants Kim Blanche - General Counsel Steve Snyder - Chief Executive Officer Mahmud Haq - Founder and Executive Chairman Bill Korn - Chief Financial Officer A. Hadi Chaudhry - President Conference Call Participants Jeffrey Cohen - Ladenburg Marc Weisenberger - B. Riley Richard Baldry - Roth Capital Gene Mannheimer - Dougherty & Co Bill Sutherland - The Benchmark Company Allen Klee - National Securities Kevin Dede - H ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark one) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 or [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-36529 MTBC, Inc. (Exact name of registrant as specified in its charter) Delaware 22-3832302 (State or other jurisdiction ...

Financial Performance & Growth - MTBC achieved accelerating revenue growth with a targeted strategy, resulting in a 49% Compound Annual Growth Rate (CAGR)[6, 15] - Q3 2020 revenue reached $31.6 million, an 88% year-over-year increase, setting a new record[6] - Q3 2020 Adjusted EBITDA was $4.2 million, a 62% year-over-year increase, also setting a new record[6] - The company reaffirmed its full-year revenue outlook of $105-$107 million and adjusted EBITDA of $12-$13 million[23] - The company's revenue run rate for 2020 is projected to be $130-$135 million[6] Acquisitions & Integration - Strategic acquisitions, including Meridian Medical Management and CareCloud Corporation, are key to MTBC's growth strategy[3, 6] - CareCloud's operating expenses were reduced by 46% by Q3 post-acquisition, and Meridian's operating expenses were reduced by 16% by Q3 post-acquisition[18] Capitalization - As of November 6, 2020, MTBC's equity value was $116 million for common stock and $138 million for Series A Preferred Stock[21]

l © 8 $ GII R TUES 19 talkEHR™ $ R ·CD NASDAQ Global Market: MTBC, MTBCP August 2020 Safe Harbor Statements This presentation contains forward-looking statements within the meaning of the federal securities laws. These statements relate to anticipated future events, future results of operations or future financial performance. In some cases, you can identify forward-looking statements by terminology such as "anticipate", "believe", "continue", "could", "estimate", "expect", "goals", "intend", "likely", "may ...

Part I. Financial Information [Condensed Consolidated Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) The company's financial position significantly changed in the first half of 2020, driven by acquisitions that doubled total assets to **$125.9 million**, increased liabilities to **$46.5 million**, and despite **30%** revenue growth to **$41.4 million**, resulted in a **$7.3 million** net loss and negative **$2.9 million** operating cash flow [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2020, total assets increased to **$125.9 million** from **$56.4 million** at year-end 2019, primarily due to acquisitions significantly boosting goodwill and intangible assets, while total liabilities rose to **$46.5 million** Condensed Consolidated Balance Sheet Highlights (in thousands) | Balance Sheet Item | June 30, 2020 (Unaudited) | Dec 31, 2019 | | :--- | :--- | :--- | | **Total Current Assets** | $31,000 | $31,002 | | **Goodwill** | $49,708 | $12,634 | | **Intangible Assets, net** | $31,793 | $5,977 | | **Total Assets** | **$125,915** | **$56,403** | | **Total Current Liabilities** | $28,289 | $11,178 | | **Borrowings under line of credit** | $9,750 | $0 | | **Total Liabilities** | **$46,548** | **$13,565** | | **Total Shareholders' Equity** | **$79,367** | **$42,838** | [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the six months ended June 30, 2020, revenue grew **30%** to **$41.4 million** driven by acquisitions, but operating expenses increased faster, resulting in a **$7.3 million** net loss, significantly wider than the prior year Financial Performance (Unaudited, in thousands, except per share data) | Metric | Q2 2020 | Q2 2019 | Six Months 2020 | Six Months 2019 | | :--- | :--- | :--- | :--- | :--- | | **Net Revenue** | $19,579 | $16,749 | $41,446 | $31,830 | | **Operating Loss** | ($4,610) | ($1,228) | ($7,447) | ($1,466) | | **Net Loss** | ($4,793) | ($771) | ($7,294) | ($1,067) | | **Net Loss Per Share** | ($0.65) | ($0.19) | ($1.07) | ($0.34) | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2020, net cash used in operating activities was **$2.9 million**, a significant shift from the prior year, while investing activities used **$27.2 million** primarily for acquisitions, offset by **$23.1 million** from financing activities Cash Flow Summary (Unaudited, in thousands) | Activity | Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | ($2,929) | $3,313 | | Net cash used in investing activities | ($27,155) | ($2,504) | | Net cash provided by (used in) financing activities | $23,059 | ($4,258) | | **Net Decrease in Cash** | **($7,462)** | **($3,889)** | - The company paid **$23.7 million** in cash for acquisitions during the first six months of 2020[28](index=28&type=chunk) - Financing activities were primarily driven by **$19.0 million** in net proceeds from issuing preferred stock and drawing **$19.5 million** from a line of credit, offset by a **$9.75 million** repayment of the same line[28](index=28&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the significant impact of the 2020 CareCloud and Meridian acquisitions, which involved **$23.7 million** cash and substantial stock, adding **$37.1 million** to goodwill, driving SaaS revenue growth, and shaping the company's two operating segments - The company is a healthcare IT firm offering a suite of cloud-based EHR and practice management solutions, primarily growing through acquisitions[29](index=29&type=chunk)[30](index=30&type=chunk) 2020 Acquisitions Summary | Acquisition | Date | Cash Paid (net) | Stock/Warrants Issued | | :--- | :--- | :--- | :--- | | **CareCloud** | Jan 2020 | ~$11.9M | 760,000 Preferred Shares, 2M Warrants | | **Meridian** | June 2020 | ~$11.9M | 200,000 Preferred Shares, 2.25M Warrants | - Goodwill increased by **$37.1 million** in the first six months of 2020, with **$22.9 million** from the CareCloud acquisition and **$14.2 million** from the Meridian acquisition[44](index=44&type=chunk)[56](index=56&type=chunk)[65](index=65&type=chunk) Revenue Disaggregation (Q2 2020 vs Q2 2019, in thousands) | Revenue Source | Q2 2020 | Q2 2019 | Change | | :--- | :--- | :--- | :--- | | Revenue cycle management | $11,365 | $11,367 | ~0% | | **SaaS solutions** | **$3,757** | **$66** | **+5592%** | | Practice management | $2,453 | $3,289 | -25% | | **Total** | **$19,579** | **$16,749** | **+17%** | - The company operates in two segments: Healthcare IT and Practice Management; for the six months ended June 30, 2020, Healthcare IT generated **$36.0 million** in revenue with a **($4.5 million)** operating loss, while Practice Management generated **$5.5 million** in revenue with **$81 thousand** operating income[145](index=145&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the **30%** revenue growth to acquisitions, which also significantly increased operating expenses, while acknowledging potential COVID-19 impacts on client patient volumes and managing liquidity challenges from negative operating cash flow through a preferred stock offering - The COVID-19 pandemic did not materially adversely affect financial results for the first two quarters of 2020, but future patient visit volumes for clients remain uncertain[155](index=155&type=chunk)[157](index=157&type=chunk) - The company's competitive advantage stems from leveraging its offshore workforce in Pakistan and Sri Lanka, where labor costs are approximately **one-tenth** of comparable U.S. costs[162](index=162&type=chunk)[170](index=170&type=chunk) Adjusted EBITDA Reconciliation (in thousands) | Metric | Six Months 2020 | Six Months 2019 | | :--- | :--- | :--- | | **GAAP Net Loss** | **($7,294)** | **($1,067)** | | Stock-based compensation | $3,188 | $1,550 | | Depreciation & amortization | $3,738 | $1,593 | | Transaction & integration costs | $1,100 | $939 | | Other adjustments | $226 | ($195) | | **Adjusted EBITDA** | **$958** | **$2,720** | - Revenue for the first six months of 2020 increased by **$9.6 million** (**30%**), with acquired customers contributing approximately **$18.6 million** of the total **$41.4 million** revenue[207](index=207&type=chunk)[208](index=208&type=chunk) - Operating expenses for the first six months of 2020 increased significantly due to acquisitions, with Selling & Marketing up **331%** and Research & Development up **847%** compared to the prior year period[209](index=209&type=chunk)[210](index=210&type=chunk)[212](index=212&type=chunk) - Negative operating cash flow of **$2.9 million** was primarily due to paying down approximately **$9.9 million** in net payables assumed as part of the CareCloud and Meridian acquisitions[224](index=224&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) As a smaller reporting company, the company is not required to provide disclosures regarding market risk - The company is a smaller reporting company and is not required to provide disclosures about market risk[234](index=234&type=chunk) [Controls and Procedures](index=44&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2020, with no material changes to internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of June 30, 2020[237](index=237&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, these controls[238](index=238&type=chunk) Part II. Other Information [Legal Proceedings](index=45&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in an arbitration proceeding with Randolph Pain Relief and Wellness Center (RPRWC) seeking approximately **$11 million** in damages from its subsidiary, MAC, which the company intends to vigorously defend - The primary legal proceeding involves an arbitration demand from Randolph Pain Relief and Wellness Center (RPRWC) against the company's subsidiary, MAC[82](index=82&type=chunk) - RPRWC's claimed damages have varied, with the latest estimate being approximately **$11 million** plus costs; the company plans to defend vigorously against the claims[84](index=84&type=chunk) [Risk Factors](index=45&type=section&id=Item%201A.%20Risk%20Factors) The primary risk factor is the ongoing COVID-19 pandemic, which could reduce client patient volumes, impacting **65%** of revenue, challenge acquisition integration, and negatively affect liquidity and access to capital - The COVID-19 pandemic poses a significant risk, as approximately **65%** of the company's revenue is directly tied to cash collected by its healthcare provider customers, which could decline due to fewer patient visits[244](index=244&type=chunk) - The pandemic creates challenges for the integration of the CareCloud and Meridian acquisitions, potentially delaying the realization of expected benefits[248](index=248&type=chunk) - The ultimate impact of the COVID-19 pandemic is highly uncertain and will depend on the spread of the virus, its severity, duration, and governmental responses[249](index=249&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=46&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) On June 16, 2020, the company issued **200,000** shares of Series A Preferred Stock and warrants for **2,250,000** common shares at **$7.50** per share as partial consideration for the Meridian acquisition, exempt from registration under Section 4(a)(2) of the Securities Act - On June 16, 2020, the company issued **200,000** shares of Series A Preferred Stock and warrants to purchase **2,250,000** shares of common stock as partial consideration for the Meridian acquisition[251](index=251&type=chunk) - The issuance was an unregistered sale, exempt from registration under Section 4(a)(2) of the Securities Act as a transaction not involving a public offering[251](index=251&type=chunk)

PART I. FINANCIAL INFORMATION [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) The unaudited condensed consolidated financial statements for Q1 2020 report a net loss on increased revenues, primarily driven by acquisitions, with total assets significantly rising due to the CareCloud acquisition and detailed notes on key events and segment performance [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheet Highlights (Unaudited) | Account | March 31, 2020 | December 31, 2019 | | :--- | :--- | :--- | | **Assets** | | | | Cash | $8,395,321 | $19,994,134 | | Total current assets | $23,405,685 | $31,002,135 | | Goodwill | $38,351,775 | $12,633,696 | | Intangible assets - net | $17,337,093 | $5,977,225 | | **Total Assets** | **$89,832,645** | **$56,403,465** | | **Liabilities & Equity** | | | | Total current liabilities | $18,177,371 | $11,177,836 | | Borrowings under line of credit | $9,750,000 | $0 | | **Total Liabilities** | **$32,635,686** | **$13,565,140** | | **Total Shareholders' Equity** | **$57,196,959** | **$42,838,325** | - The significant increase in Goodwill and Intangible Assets is primarily due to the acquisition of CareCloud in January 2020[17](index=17&type=chunk)[44](index=44&type=chunk) [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Statement of Operations Summary (Unaudited, for the three months ended March 31) | Metric | 2020 | 2019 | | :--- | :--- | :--- | | **Net Revenue** | **$21,867,169** | **$15,080,211** | | Total operating expenses | $24,704,371 | $15,318,208 | | Operating Loss | ($2,837,202) | ($237,997) | | **Net Loss** | **($2,501,770)** | **($295,691)** | | Net loss attributable to common shareholders | ($5,144,686) | ($1,788,391) | | Net loss per common share (basic and diluted) | ($0.42) | ($0.15) | - Revenue grew **45%** year-over-year, primarily driven by acquisitions, however, operating expenses also increased significantly, leading to a larger operating and net loss compared to the prior year[19](index=19&type=chunk)[187](index=187&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary (Unaudited, for the three months ended March 31) | Activity | 2020 | 2019 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | ($3,883,414) | $937,509 | | Net cash used in investing activities | ($14,033,196) | ($510,938) | | Net cash provided by (used in) financing activities | $6,809,586 | ($2,586,271) | | **Net Decrease in Cash** | **($11,598,813)** | **($1,945,836)** | | **Cash - end of the period** | **$8,395,321** | **$12,526,647** | - Cash used in investing activities surged due to **$11.9 million** paid for the CareCloud acquisition, while cash from financing activities was positive due to drawing **$9.75 million** from the line of credit[28](index=28&type=chunk)[205](index=205&type=chunk) - Operating cash flow was negative **$3.9 million**, primarily because the company assumed and paid approximately **$5.1 million** of net payables from the CareCloud acquisition[203](index=203&type=chunk)[207](index=207&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - On January 8, 2020, the Company acquired CareCloud Corporation for a total consideration including approximately **$11.9 million** in cash, assumption of approximately **$5.1 million** in working capital deficiency, **760,000 shares** of Preferred Stock, and warrants, which added **$7.6 million** in revenue for the quarter[38](index=38&type=chunk)[39](index=39&type=chunk)[46](index=46&type=chunk) Disaggregation of Revenue (for the three months ended March 31) | Revenue Source | 2020 | 2019 | | :--- | :--- | :--- | | Revenue cycle management services | $13,189,963 | $10,516,840 | | SaaS solutions | $3,613,514 | $40,602 | | Practice management services | $3,026,304 | $2,960,467 | | Other Services | $1,938,388 | $1,262,302 | | **Total** | **$21,867,169** | **$15,080,211** | - The company reports in two segments: Healthcare IT and Practice Management, with Healthcare IT generating **$18.8 million** in revenue and an operating loss of **($1.7 million)**, and Practice Management generating **$3.0 million** in revenue with an operating loss of **($19 thousand)** for Q1 2020[133](index=133&type=chunk) - Subsequent to the quarter end, in April 2020, the Company sold **828,000 shares** of its Series A Preferred Stock, receiving net proceeds of approximately **$19.1 million**[134](index=134&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=28&type=page&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the **45% year-over-year revenue growth** to **$21.9 million** for Q1 2020, primarily due to acquisitions, alongside significant increases in operating expenses, a decline in Adjusted EBITDA, and the potential impacts of the COVID-19 pandemic on future results and liquidity Q1 2020 vs Q1 2019 Results of Operations ($M) | Metric | Q1 2020 | Q1 2019 | Change (%) | | :--- | :--- | :--- | :--- | | Net Revenue | $21.9 | $15.1 | +45% | | Direct Operating Costs | $13.6 | $9.8 | +38% | | Selling and Marketing | $1.6 | $0.4 | +338% | | Research and Development | $2.3 | $0.3 | +816% | | General and Administrative | $5.6 | $4.2 | +34% | | **Operating Loss** | **($2.8)** | **($0.2)** | N/A | - The COVID-19 pandemic did not materially adversely affect Q1 2020 results, but management expects it to impact the second quarter and beyond, particularly as a majority of revenue is tied to client collections which may decline due to fewer patient visits[139](index=139&type=chunk)[140](index=140&type=chunk)[225](index=225&type=chunk) Non-GAAP Financial Measures (in thousands) | Metric | Q1 2020 | Q1 2019 | | :--- | :--- | :--- | | GAAP net loss | ($2,502) | ($296) | | **Adjusted EBITDA** | **$767** | **$1,580** | | GAAP operating loss | ($2,837) | ($238) | | **Non-GAAP adjusted operating income** | **$428** | **$1,147** | | **Non-GAAP adjusted net income** | **$354** | **$1,277** | - Liquidity was managed by drawing the full **$9.75 million** available on its SVB line of credit in Q1 2020, and in April 2020, the company raised an additional **$19.1 million** in net proceeds from a preferred stock sale, a portion of which was used to repay the credit line[204](index=204&type=chunk)[211](index=211&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=38&type=page&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) As a smaller reporting company, MTBC, Inc. is not required to provide the information requested under this item - The company is a smaller reporting company as defined by 17 C.F.R. 229.10(f)(1) and is not required to provide information under this item[214](index=214&type=chunk) [Controls and Procedures](index=38&type=page&id=Item%204.%20Controls%20and%20Procedures) Based on an evaluation as of March 31, 2020, the company's management, including the Chief Executive Officer and Chief Financial Officer, concluded that the disclosure controls and procedures were effective at a reasonable assurance level, with no material changes in internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that as of March 31, 2020, the company's disclosure controls and procedures were effective at the reasonable assurance level[218](index=218&type=chunk) - No changes in internal control over financial reporting occurred during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, internal controls[219](index=219&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=40&type=page&id=Item%201.%20Legal%20Proceedings) The company refers to Note 8 of the financial statements regarding an arbitration demand filed by Randolph Pain Relief and Wellness Center (RPRWC) against its subsidiary, MTBC Acquisition Corp. (MAC), seeking **$6.6 million** in damages, though MTBC, Inc. itself is not compelled to participate - The company is involved in an arbitration proceeding where a claimant, RPRWC, seeks **$6.6 million** in damages from its subsidiary, MAC, for an alleged breach of a billing services agreement[73](index=73&type=chunk)[75](index=75&type=chunk) - On February 6, 2020, a court granted summary judgment in favor of MTBC, Inc., holding that it cannot be compelled to participate in the arbitration, which will proceed only against the subsidiary, MAC[74](index=74&type=chunk) [Risk Factors](index=40&type=page&id=Item%201A.%20Risk%20Factors) This section primarily focuses on the risks associated with the COVID-19 pandemic, including its negative impact on healthcare provider customers and the company's revenue, challenges to global operations, and volatility in financial markets - The business is subject to significant risks from the COVID-19 pandemic, which could harm operations, financial condition, and growth[224](index=224&type=chunk) - A key risk is the financial health of healthcare provider customers, as suspended elective procedures and fewer patient visits will likely harm their financial condition, adversely affecting MTBC's revenue, since approximately **60%** of it is tied to customer cash collections[225](index=225&type=chunk) - The pandemic has caused significant volatility in financial markets, which could reduce the company's ability to access capital and negatively affect liquidity and the value of its stock[227](index=227&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=page&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) On January 8, 2020, in connection with the CareCloud acquisition, the company issued **760,000 shares** of its Series A Preferred Stock to the seller, exempt from registration under Section 4(a)(2) of the Securities Act as a private offering - As partial consideration for the CareCloud acquisition, the company issued **760,000 shares** of Series A Preferred Stock on January 8, 2020[229](index=229&type=chunk) - The transaction was exempt from registration under Section 4(a)(2) of the Securities Act as a private offering not involving public distribution[229](index=229&type=chunk) [Defaults Upon Senior Securities](index=41&type=page&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) Not applicable [Mine Safety Disclosures](index=41&type=page&id=Item%204.%20Mine%20Safety%20Disclosures) Not applicable [Other Information](index=41&type=page&id=Item%205.%20Other%20Information) Not applicable [Exhibits](index=42&type=page&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications from the Principal Executive Officer and Principal Financial Officer, and XBRL (eXtensible Business Reporting Language) data files - The report includes required certifications from the CEO and CFO under Exchange Act Rules 13a-14(a)/15d-14(a) and Section 1350 of the Sarbanes-Oxley Act[234](index=234&type=chunk) - Interactive Data Files (XBRL) are included as exhibits, covering the instance document, schema, and various linkbases (calculation, label, presentation, definition)[234](index=234&type=chunk)