Core Insights - Marpai, Inc. is taking significant steps to transform self-funded employer health plans through a strategic collaboration with Empara, a healthcare technology innovator, and the rollout of Empara's Health Engagement Platform [1][2] Group 1: Company Overview - Marpai operates in the $22 billion Third-Party Administrator (TPA) market, focusing on self-funded employer health plans that account for over $1 trillion in annual claims [3] - The company aims to enhance the healthcare experience by consolidating multiple fragmented tools into a unified platform that provides intuitive access to benefits for plan members and administrators [2][3] Group 2: Strategic Initiatives - The integration of Empara's platform is expected to drive operational improvements and enhance benefit utilization, ultimately empowering users to manage their health interactions and costs more effectively [2][3] - Marpai anticipates having the full platform operational by the end of the second quarter of 2025, indicating a commitment to rapid implementation of these changes [3]

Core Viewpoint - Health In Tech has announced a strategic collaboration with Vitable and MARPAI to introduce a competitively priced self-funded health plan, aiming to enhance affordability and efficiency in healthcare access [1][3]. Company Overview - Health In Tech is an Insurtech platform company utilizing third-party AI technology to streamline processes in the healthcare industry, focusing on vertical integration, process simplification, and automation [5]. - Vitable offers a hybrid Direct Primary Care health plan that provides easy access to primary care and mental health services, targeting the under- and uninsured workforce [6]. - Marpai, Inc. operates in the TPA sector, providing value-oriented health plan services to employers, competing in a market worth $22 billion [7]. Collaboration Details - The collaboration aims to leverage Vitable's Direct Primary Care model and MARPAI's self-funded health plans to deliver competitive quotes through Health In Tech's eDIYBS platform [2][4]. - Vitable's enhanced primary care plan includes in-person and virtual access, mental health programs, free prescription drugs, and lab work, all under a low monthly fee with $0 out-of-pocket costs for members [2][6]. - The partnership is expected to improve member satisfaction and healthcare cost containment, with a focus on delivering comprehensive care [3][4].

Company Overview - Marpai, Inc. operates as a national Third-Party Administrator (TPA) in the $22 billion TPA market, focusing on affordable healthcare solutions for self-funded employer health plans [1][6] - The company aims to transform the TPA market by providing intelligent healthcare solutions and has a significant presence in managing over $1 trillion in annual claims [6] Recent Funding - Marpai announced an additional funding of $5,000,000 from JGB Collateral LLC, intended for growth initiatives and general working capital [1][5] - The company previously entered into a Securities Purchase Agreement to sell Senior Secured Convertible Debentures totaling $11,830,000 for a purchase price of $11,000,000 [2] - Amendments to the Purchase Agreement allowed for an additional $5,376,000 in Debentures, with $2,000,000 already delivered and $3,000,000 held in escrow pending certain conditions [3][4] Management Commentary - The CEO of Marpai expressed satisfaction with the ongoing relationship with JGB and emphasized that the proceeds will support growth initiatives and enhance working capital [5]

Company Overview - Marpai, Inc. operates as a technology platform company and a national Third-Party Administrator (TPA) through its subsidiaries, focusing on the $22 billion TPA market by providing affordable and intelligent healthcare solutions to self-funded employer health plans [1][4] - The company primarily competes in the TPA sector, which serves self-funded employer health plans that represent over $1 trillion in annual claims [4] Recent Financial Activity - Marpai announced a private placement offering, issuing 621,194 shares of its Class A common stock at a price of $1.13 per share, resulting in aggregate gross proceeds of $701,950 [1] - The investors in this offering included an institutional fund and certain officers and directors of the company [1] - The net proceeds from the offering are intended for general working capital [1] Market Position and Strategy - Through its Marpai Saves initiative, the company aims to deliver the healthiest member population for the health plan budget [4] - Marpai provides access to leading provider networks, including Aetna and Cigna, and offers a comprehensive range of TPA services [4]

Core Insights - Marpai, Inc. is transforming the $22 billion Third-Party Administrator (TPA) market by providing affordable and intelligent healthcare solutions for self-funded employer health plans [1][4] - The company has secured several significant new accounts for 2025, including clients from the restaurant, hospital, and housing industries, which collectively represent thousands of employee lives [2][3] - Marpai is on track for expected break-even performance in early 2025 due to new sales and ongoing cost efficiencies [3] Company Overview - Marpai operates as a national TPA through its subsidiaries, focusing on value-oriented health plan services for employers that directly pay for employee health benefits [4] - The company competes in a sector that serves self-funded employer health plans, which account for over $1 trillion in annual claims [4] - Marpai's initiatives, such as Marpai Saves, aim to deliver healthier member populations while managing health plan budgets [4] Sales and Growth Strategy - The addition of a new sales team in early 2024 has enabled Marpai to target new business and renewals effectively, traditionally focused on January 1st [2] - The company has reported successful client acquisitions, including a 4,000-employee restaurant group and a 6,000-employee hospital group, set to transition in 2025 [2][3] - Marpai's CEO highlighted the sales team's success in leveraging the Marpai Saves initiative to provide immediate value to targeted industries [3]

Financial Data and Key Metrics Changes - The company ended the quarter with just over $800,000 in cash on hand [14] - Revenue declined by approximately 3% from Q2, while operating expenses were cut by 15%, saving approximately $1.8 million [14] - Operating loss, excluding a $7.6 million impairment of intangibles and goodwill from Q2, was reduced from approximately $4.7 million to approximately $3.1 million for Q3 [14] - Cash used in operations stabilized at $3.5 million for the third quarter [15] Business Line Data and Key Metrics Changes - Significant improvements in operational efficiency were noted, with average claim processing time and average call answer time decreasing by 75% and 80%, respectively [6] - A major project is expected to reduce TPA expenses by over 25% in Q1 2025 [7] Market Data and Key Metrics Changes - The TPA industry has seen substantial growth due to complex healthcare regulations and rising costs, with Marpai positioned to handle administrative burdens for businesses [8] - Marpai has secured clients that will experience growth throughout the year, including a 4,000-life employee restaurant group and a 6,000-employee hospital group [10] Company Strategy and Development Direction - The company is focused on creating long-term value for shareholders and has a robust sales pipeline extending beyond Q1 2025 [4][9] - Marpai is leveraging advanced technologies to streamline processes and improve the overall employee benefit experience [9] - The company is committed to reducing costs and improving operational efficiencies, including bringing customer service in-house [12] Management's Comments on Operating Environment and Future Outlook - Management anticipates a positive impact on the TPA industry due to recent election results, reducing the threat of a single-payer system [5] - The leadership team is committed to creating value for shareholders and is motivated by their commitment to customers and partners [16] Other Important Information - A new institutional investor, the IFCM MicroCap Fund, has become a large shareholder in Marpai [17] - The company encourages shareholders to provide ideas and suggestions for continued growth [18] Q&A Session Summary - The conference concluded without a Q&A session, as indicated by the operator's closing remarks [18]

Revenue Performance - Total revenue for the three months ended September 30, 2024, was $7.0 million, a decrease of 19.7% from $8.7 million in the same period of 2023[110] - For the nine months ended September 30, 2024, total revenue was $21.6 million, down 24.1% from $28.4 million in 2023[111] Cost and Expenses - Cost of revenue for the three months ended September 30, 2024, was $5.0 million, a decrease of 11.6% from $5.7 million in 2023[113] - General and administrative expenses for the three months ended September 30, 2024, were $2.8 million, down 43.6% from $5.0 million in 2023[115] - General and administrative expenses decreased to $10.0 million for the nine months ended September 30, 2024, down from $15.9 million for the same period in 2023, a reduction of approximately 37.7%[116] - Sales and marketing expenses for the nine months ended September 30, 2024, were $1.4 million, a decrease of 74.5% from $5.5 million in the same period in 2023[118] - Information technology expenses decreased to $3.6 million for the nine months ended September 30, 2024, compared to $4.8 million for the same period in 2023, a reduction of 25%[120] - Research and development expenses fell to $22 thousand for the nine months ended September 30, 2024, down from $1.3 million in the same period in 2023, a decrease of approximately 98.3%[122] - The company reported a significant decrease in research and development expenses, down 97.4% to $7,000 for the three months ended September 30, 2024[108] - Depreciation and amortization expenses decreased to $2.1 million for the nine months ended September 30, 2024, from $3.0 million in the same period in 2023, a reduction of approximately 30%[124] Operating Performance - Operating loss for the three months ended September 30, 2024, was $(3.1) million, a 56.5% improvement from $(7.0) million in 2023[108] - Net loss for the three months ended September 30, 2024, was $(3.6) million, a 51.2% improvement from $(7.3) million in 2023[108] Strategic Initiatives - The company is exploring strategic alternatives to maximize shareholder value, including potential mergers or sales[105] - The company plans to adapt its approach to better serve customer needs amid evolving market conditions[110] Financial Position - As of September 30, 2024, the company had an accumulated deficit of approximately $97.7 million and unrestricted cash and cash equivalents of approximately $830 thousand[128] - Net cash used in operating activities totaled $10.3 million for the nine months ended September 30, 2024, a decrease of $5.0 million compared to $15.3 million for the same period in 2023[138] - The company raised $8.6 million from financing activities during the nine months ended September 30, 2024, an increase of approximately 32.6% compared to $6.4 million in the same period in 2023[139] Impairment and Interest - The company recorded a goodwill and intangible asset impairment charge of $7.6 million in June 2024 due to continued operating losses and negative cash flows[125] - Interest expense increased to $1.9 million for the nine months ended September 30, 2024, compared to $1.1 million for the same period in 2023, an increase of approximately 71.8%[127] Stock Listing - The company transitioned its common stock listing from Nasdaq to OTCQX effective May 29, 2024[103]

Financial Performance - Net revenues for Q3 2024 were approximately $7.0 million, down $1.7 million, or 20% year over year compared to Q3 2023[2] - Operating expenses decreased to $10.1 million, down $5.7 million, or 36% year over year compared to Q3 2023[2] - Operating loss was $3.1 million, a reduction of $4.0 million, or 57% lower year over year compared to Q3 2023[3] - Net loss for Q3 2024 was $3.6 million, down $3.7 million, or 51% lower year over year compared to Q3 2023[3] - Net loss for the nine months ended September 30, 2024, was $20,932 thousand, compared to a net loss of $23,725 thousand for the same period in 2023, representing a 12% improvement[14] Earnings and Shareholder Value - Basic and diluted earnings per share improved to ($0.30), up $0.68 per share year over year compared to Q3 2023[4] Cash Flow and Liquidity - Cash used in operating activities decreased to $10,251 thousand from $15,324 thousand year-over-year, indicating a 33% reduction in cash outflow[14] - Total cash, cash equivalents, and restricted cash at the end of the period was $11,808 thousand, down from $14,252 thousand at the end of September 30, 2023[14] - The company experienced a net cash provided by financing activities of $8,567 thousand, compared to $6,432 thousand in the prior year[14] Assets and Liabilities - Total current assets decreased to $14.9 million as of September 30, 2024, down from $17.1 million at December 31, 2023[9] - Total liabilities increased to $47.2 million as of September 30, 2024, compared to $45.1 million at December 31, 2023[9] Company Strategy and Future Outlook - The company aims for profitability and positive cash flow as part of its turnaround efforts[4] - Marpai operates in the $22 billion TPA market, serving self-funded employer health plans with over $1 trillion in annual claims[6] - The company plans to announce exciting developments in the fourth quarter of 2024[4] Non-Cash and Other Expenses - The company reported a non-cash interest expense of $975 thousand for the nine months ended September 30, 2024[14] - Share-based compensation increased to $2,786 thousand from $1,837 thousand, reflecting a 52% rise year-over-year[14] - Impairment of goodwill and intangible assets was recorded at $7,588 thousand, indicating significant asset write-downs[14] - Cash paid for interest was $1,508 thousand, with no interest payments reported in the previous year[15] - The company reported a loss on the sale of receivables amounting to $306 thousand, which was not present in the previous year[14] - Proceeds from the issuance of convertible debentures amounted to $5,978 thousand, contributing to financing activities[14]

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 res ...

TAMPA, Fla., Nov. 8, 2024 /PRNewswire/ -- Marpai, Inc. ("Marpai" or the "Company") (OTCQX: MRAI), a technology platform company, operates as a national Third-Party Administrator (TPA) through its subsidiaries. We're transforming the $22 billion TPA market by offering affordable, intelligent, healthcare solutions to selffunded employer health plans. The Company will host a conference call and webcast on Tuesday, November 12 at 8:30 a.m. ET to present the Company's operational and financial highlights for its ...