Financial Data and Key Metrics Changes - In Q1 2025, the company's revenue was $2 million, reflecting a 25% decrease compared to the same period last year due to the loss of a customer [15] - The average revenue per enrolled member per month was approximately $254, down from $500 in Q4 2024 and $504 in Q1 2024 [17] - Gross margin for Q1 was 37%, a decrease from 61% in Q4 2024 and 63.6% in Q1 2024, primarily driven by the loss of a customer and a shift in member mix [20] Business Line Data and Key Metrics Changes - The total enrolled members reached 3,165 at the end of Q1, nearly doubling year over year, with over 1,150 members in the Engage program [6][16] - The company added 2,039 new members during the quarter, the highest since Q3 2021, contrasting with 1,641 in Q4 2024 and 925 in Q1 2024 [18] - The average monthly disenrollment rate was 10%, down from 19% in Q4 2024 and 22% in Q1 2024 [19] Market Data and Key Metrics Changes - The company has achieved state Medicaid provider approval in two states and is working to expand its footprint [8] - The outreach pool averaged 27,204 for the quarter, leading to a 30% enrollment rate, down from 50% in Q4 2024 [18] Company Strategy and Development Direction - The company aims to double its run rate revenue in 2025 compared to 2024, driven by successful conversions of prospective customers [6] - The Engage solution is expanding market reach by serving members who may not require the full Whole Health Plus program [7] - The company is focused on converting its strong pipeline into signed contracts while nurturing relationships with existing customers [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about converting prospective customers, particularly a large Midwestern Medicaid plan [5][10] - The overall reaction from prospects to the enhanced solution suite has been extremely positive, with health plans acknowledging the need for more intensive behavioral health support [12] - The company anticipates revenues for Q2 2025 in the range of $2.2 million to $2.6 million, representing an 8% to 22% sequential increase [22] Other Important Information - The company reported cash flow from operations for Q1 was negative $2.7 million, an improvement from negative $3.3 million in the same period last year [21] - Cash reserves stood at $4.1 million at the end of the quarter, down from $5.7 million at the end of 2024 [21] - The company has secured up to $10 million of additional financing available as needed in the short term [22] Q&A Session Summary - No specific questions or answers were documented in the provided content, indicating that the call may have concluded without a formal Q&A session.

Revenue Performance - Revenue for Q1 2025 was $2.0 million, a decrease of 25% from $2.7 million in Q1 2024, primarily due to a decrease in total average enrolled members[157] - Total revenue decreased by $0.7 million, or 25%, to $2.017 million for the three months ended March 31, 2025, compared to $2.680 million in the same period of 2024[169] Operating Expenses and Loss - Total operating expenses for Q1 2025 were $6.6 million, up from $6.0 million in Q1 2024, with increases in research and development and general administrative expenses[168] - Total operating expenses increased by $0.6 million, or 10%, to $6.596 million for the three months ended March 31, 2025, driven by increases in research and development and general and administrative costs[172] - Operating loss for Q1 2025 was $(5.9) million, compared to $(4.3) million in Q1 2024, indicating a worsening financial performance[168] - Operating loss increased by $1.577 million, or 37%, to $5.850 million for the three months ended March 31, 2025[172] Cash Flow and Liquidity - Cash flow from operations improved to $(2.7) million in Q1 2025 from $(3.3) million in Q1 2024, attributed to increased collections on accounts receivable and efficient cash flow management[158] - Net cash used in operating activities improved to $2.723 million for the three months ended March 31, 2025, compared to $3.259 million in the same period of 2024[181] - Total cash as of March 31, 2025, was $4.1 million, with negative working capital of approximately $3.1 million[175] - The company was not in compliance with consolidated liquidity or consolidated recurring revenue covenants as of March 31, 2025, raising substantial doubt about its ability to continue as a going concern[178] Member Enrollment and Outreach - Callable outreach pool for WholeHealth+ increased by 45% to 7,319 members as of March 31, 2025, compared to 5,057 members a year earlier[159] - Callable outreach pool for Ontrak Engage reached 22,152 members as of March 31, 2025, reflecting the program's launch on an à la carte basis in early 2024[160] - The company aims to increase eligible members by signing new contracts and identifying more eligible members within existing contracts[161] Debt and Financing - The company entered into an agreement with Acuitas to purchase up to $5.0 million in Demand Notes and $5.0 million in senior secured non-convertible promissory notes[153] - Interest expense, net increased by $858,000, or 469%, to $183,000 for the three months ended March 31, 2025, due to a higher average total outstanding loan balance[174] - The company had $13.5 million of secured debt outstanding as of March 31, 2025, with additional borrowing of $0.5 million under the Keep Well Agreement on May 9, 2025[176] Customer Relations - A health plan customer notified the company of its intent to discontinue services after December 2024, leading to disenrollment of related members[152] - The company has a minimum guarantee of $5.8 million over a two-year period with a customer, extended to June 30, 2025, with $4.6 million invoiced as of March 31, 2025[163] Cost of Revenue and Profitability - Cost of revenue increased by $0.3 million, or 30%, to $1.271 million for the three months ended March 31, 2025, primarily due to higher employee compensation and benefit costs[170] - Gross profit decreased by $1.0 million to $746,000, with gross profit margin declining by 27% to 37% for the three months ended March 31, 2025[171]

Financial Performance - Q4 2024 revenue was $3.1 million, an 11% decrease year over year; full year revenue was $10.8 million, down 15% year over year[5]. - Q4 2024 operating loss was $(4.4) million, a 16% improvement from $(5.2) million in Q4 2023; full year operating loss was $(17.8) million, a decrease of 16% year over year[6]. - Q4 2024 Adjusted EBITDA improved to $(2.8) million, a 20% improvement year over year; full year Adjusted EBITDA was $(12.8) million, a 13% improvement year over year[5]. - The company experienced a net loss of $(5.2) million in Q4 2024, compared to a net loss of $(6.4) million in Q4 2023[6]. - Non-GAAP net loss for the full year 2024 was $(15.4) million, compared to $(24.9) million for the prior year[10]. - Revenue for Q4 2024 was $3,146 million, a decrease of 11.1% from $3,539 million in Q4 2023[27]. - Gross profit for the year ended December 31, 2024, was $6,824 million, down 22.4% from $8,800 million in 2023[27]. - Operating loss for Q4 2024 was $4,363 million, compared to a loss of $5,213 million in Q4 2023, showing an improvement of 16.3%[27]. - Net loss attributable to common stockholders for the year ended December 31, 2024, was $79,015 million, significantly higher than $36,874 million in 2023[27]. - Adjusted EBITDA for the year ended December 31, 2024, was $(12,825) million, an improvement from $(14,730) million in 2023[35]. Cash and Liabilities - Cash and restricted cash at the end of Q4 2024 was $5,710 million, down from $9,701 million at the end of Q4 2023[32]. - Total current liabilities increased to $8,780 million in 2024 from $3,942 million in 2023, reflecting a rise of 123.4%[30]. - Stock-based compensation expense for the year ended December 31, 2024, was $3,920 million, an increase of 32.8% from $2,948 million in 2023[32]. - Total assets increased to $21,075 million in 2024 from $19,846 million in 2023, representing a growth of 6.2%[30]. - Weighted-average common shares outstanding increased to 4,643 million in 2024 from 744 million in 2023, a significant rise of 524.3%[39]. Membership and Contracts - Total enrolled members in the WholeHealth+ program decreased to 1,409 at the end of Q4 2024 from 1,758 at the end of Q4 2023[10]. - The callable outreach pool for WholeHealth+ was 4,908 at December 31, 2024, down from 6,689 at September 30, 2024[10]. - The company signed a new agreement with Intermountain Health to deliver WholeHealth+ to approximately 2,300 Medicare Advantage members[10]. - A three-year contract extension was announced with Sentara Health Plans following several expansions in 2024[5]. Future Outlook - For Q1 2025, the company estimates revenue in the range of $2.0 million to $2.3 million[13].

Revenue and Financial Performance - Revenue for 2024 was $10.8 million, a decrease of 15% from $12.7 million in 2023, primarily due to a reduction in average enrolled members[222]. - Total revenue decreased by $1.9 million, or 15%, in 2024 compared to 2023, primarily due to a decrease in average enrolled members[235]. - Gross profit decreased by $2.0 million, or 22%, with a gross profit margin of 63% in 2024, down from 69% in 2023[236][237]. - The company incurred a net loss of $25.5 million in 2024, compared to a net loss of $27.9 million in 2023[234]. - Cash flow from operations improved to $(13.4) million in 2024 from $(15.5) million in 2023, attributed to a decrease in net loss and improved operating expenses from strategic headcount reductions[223]. Operating Expenses and Cost Management - Total operating expenses decreased by $5.3 million, or 18%, in 2024, with significant reductions in research and development, sales and marketing, and general and administrative costs[238]. - Interest expense, net decreased by $5.4 million, or 75%, in 2024, attributed to lower average outstanding loan balances[242]. - The company implemented multiple restructuring plans over the last two years, resulting in a reduction of annual compensation costs by approximately $2.0 million in February 2024 and $2.7 million in March 2023[218]. Cash and Liquidity - As of December 31, 2024, total cash was $5.7 million, with a working capital of approximately $0.8 million and an average monthly cash burn rate of $1.1 million[244]. - The company has raised concerns about its ability to continue as a going concern due to insufficient cash on hand to meet obligations for the next 12 months[248]. - The company anticipates requiring additional capital to fund operations through and beyond the second quarter of 2025, raising substantial doubt about its ability to continue as a going concern[246][247]. - The company has approximately $13.6 million of secured debt outstanding under the Keep Well Agreement[248]. Customer and Program Developments - A health plan customer accounted for approximately 59% of revenue in 2024, billing $6.5 million, while another customer represented 33.8% of revenue in 2023, billing $4.3 million[215]. - The callable outreach pool for the WholeHealth+ program increased to 4,908 at December 31, 2024, up 127% from 2,161 at the end of 2023, due to program expansion with a major health plan customer[224]. - The callable outreach pool for the Ontrak Engage program was 20,648 at December 31, 2024, reflecting the launch of this program on an à la carte basis in the first half of 2024[225]. - Management is actively pursuing growth strategies and engaging with prospects and existing customers to expand business relationships[245]. Stock and Debt Transactions - The company executed a 1-for-15 reverse stock split effective September 23, 2024, to enhance its stock price and marketability[209]. - Acuitas agreed to purchase $5.0 million of Keep Well Notes, with the purchase completed as of the filing date, and the payment due after August 30, 2025[210]. - Acuitas may purchase up to an additional $5.5 million of Keep Well Notes, with ongoing discussions regarding this potential purchase[248]. - Debt issuance costs for 2024 included $3.3 million related to promissory notes and $2.7 million of warrants expensed[240]. Legal and Compliance Matters - Legal defense costs related to various securities class actions and investigations totaled approximately $5.2 million, with $4.9 million paid by the insurer as of December 31, 2024[217]. - The company was not in compliance with the consolidated recurring revenue covenant of $11.0 million as of December 31, 2024, but was in compliance with the consolidated liquidity covenant[245]. Other Financial Information - The company reported a net cash used in operating activities of $13.4 million for the year ended December 31, 2024, an improvement from $15.5 million in 2023[249]. - Net cash provided by financing activities was $9.6 million in 2024, primarily from $8.0 million in borrowings under the Keep Well Agreement and $3.5 million from warrant exercises[251]. - The company utilized $0.2 million in investing activities in 2024, compared to $0.3 million in 2023, related to capitalized software development costs[250]. - The company conducted its annual goodwill impairment test on October 1, 2024, and determined no impairment existed[263]. - Research and development costs are expensed as incurred, primarily including personnel and related expenses for software development[262]. - Deferred revenue represents billed but unrecognized revenue, recognized as performance obligations are satisfied[261].

Financial Data and Key Metrics Changes - In Q3 2024, the company's revenue reached $2.6 million, reflecting a 31% decrease compared to the same period last year due to the loss of a customer at the beginning of the year [24] - The average revenue per health plan enrolled member per month was approximately $449, down from $462 in Q2 2024 and $552 in Q3 2023, primarily due to a mix shift from newer customers with different pricing structures [25] - The gross margin for Q3 was 62%, a decrease from 65.6% in Q2 2024 and 72% in Q3 2023, with expectations of maintaining current levels but potential slight decreases during new customer expansions [29] - Operating cash flow for Q3 showed a negative $1.4 million, an improvement from negative $1.8 million in the same quarter last year [30] Business Line Data and Key Metrics Changes - The company added 1,166 new members during Q3, compared to 881 in Q2 2024 and 1,272 in Q3 2023, indicating a growing membership base [26] - The enrollment rate for Q3 was 64%, up from 61% in Q2 2024 and 50% in Q3 2023, attributed to higher enrollment rates from new customers [27] - The average monthly disenrollment rate stood at 11%, consistent with prior periods [28] Market Data and Key Metrics Changes - The company secured two new regional health plan customers and four health plan expansions since January, showcasing the versatility of its offerings across various plan types [10] - The current customer base under contract accounts for approximately $11 million to $13 million of annual revenue, with potential additional revenue of $9 million to $12 million from opportunities at the bottom of the sales funnel [31][32] Company Strategy and Development Direction - The company is focused on strategic growth and innovation, with recent announcements regarding mental health digital twin and comprehensive healthcare integration framework [18] - The Engage solution is being offered to members across multiple lines of businesses, including Medicaid HARP, Medicare Advantage, and Commercial, indicating a broadening of service offerings [9] Management's Comments on Operating Environment and Future Outlook - Management highlighted macro trends driving demand for services, including elevated medical cost trends in Medicaid plans and the need for improved risk scoring [13] - The company anticipates Q4 2024 revenues in the range of $2.9 million to $3.2 million, representing a 12% to 23% sequential increase [33] Other Important Information - The company has four active prospects in the late stages of the sales cycle, representing significant potential for future growth [19] - The company experienced a cash reserve decrease to $8 million from $9.7 million at the end of the previous year [30] Q&A Session Summary - The Q&A session concluded without specific questions being documented in the provided content, indicating a focus on the management's remarks and financial results rather than audience inquiries.

Financial Performance - Q3 2024 revenue was $2.6 million, a 31% decrease year over year[1] - Q3 2024 operating loss was $(5.1) million, a 26% increase year over year[1] - Q3 2024 adjusted EBITDA was $(3.3) million, a 24% decline year over year[1] - The company reported a net loss of $(5.6) million for Q3 2024, compared to a net loss of $(6.4) million for the same period in 2023[5] - Revenue for the three months ended September 30, 2024, was $2,569,000, a decrease of 30.8% compared to $3,715,000 for the same period in 2023[23] - Operating loss for the three months ended September 30, 2024, was $(5,107,000), compared to $(4,064,000) for the same period in 2023, reflecting a 25.7% increase in losses[23] - Net loss attributable to common stockholders for the nine months ended September 30, 2024, was $(27,043,000), a decrease of 4.2% from $(28,240,000) in the same period of 2023[23] - For the three months ended September 2024, the net loss was $5,580, compared to a net loss of $6,418 for the same period in 2023, representing a decrease of 13%[28] - The adjusted EBITDA for the nine months ended September 2024 was $(9,989), an improvement from $(11,172) for the same period in 2023, indicating a reduction in losses of approximately 10.6%[27] - The operating loss for the three months ended September 2024 was $(5,107), compared to $(4,064) for the same period in 2023, indicating a decline of 25.7%[27] - The EBITDA for the three months ended September 2024 was $(4,997), compared to $(3,446) for the same period in 2023, reflecting an increase in losses of 45%[27] Membership and Partnerships - Total enrolled members in the WholeHealth+ program were 2,007 at the end of Q3 2024, compared to 2,297 at the end of Q3 2023[8] - The company signed a 2-year strategic partnership with a large regional health plan in August 2024 to deliver behavioral health solutions[8] Cash and Assets - Cash and restricted cash at the end of the period was $7,966,000, down from $9,701,000 at the beginning of the period[26] - Total current liabilities increased to $8,657,000 as of September 30, 2024, compared to $3,942,000 at December 31, 2023[25] - Long-term debt increased to $2,169,000 from $1,467,000, indicating a rise in financial leverage[25] - Total assets as of September 30, 2024, were $22,398,000, an increase from $19,846,000 at December 31, 2023[25] Expenses and Costs - Research and development expenses for the three months ended September 30, 2024, were $1,224,000, a decrease of 21.2% from $1,552,000 in the prior year[23] - Stock-based compensation expense for the three months ended September 2024 was $1,712, up from $797 in the same period last year, reflecting a 114% increase[28] - The company incurred restructuring, severance, and related costs of $290 for the nine months ended September 2024, down from $457 in the same period last year[27] Certifications and Initiatives - The company achieved HITRUST Risk-based, 2-year (r2) certification for its Advanced Engagement System, ensuring high standards of data security[9] - The company announced the launch of Ontrak Quality, aimed at improving healthcare quality measures and closing care gaps[8] Stock and Dividends - The company executed a reverse stock split at a ratio of 1-for-15 effective September 23, 2024[1] - Dividends on preferred stock - undeclared for the three months ended September 2024 were $(2,239), consistent with the same amount in the prior year[28] - The weighted-average common shares outstanding for the three months ended September 2024 was 4,420, significantly higher than 327 for the same period in 2023[28] - The company reported a gain on the change in fair value of warrant liability of $(1) for the three months ended September 2024, compared to $(38) for the same period in 2023[28]

Revenue Performance - Revenue for Q2 2024 was $2.5 million, a decrease of 17% from $3.0 million in Q2 2023, and $5.1 million for the first half of 2024, down 7% from $5.5 million in the same period last year [146]. - Total revenue decreased by $0.5 million, or 17%, in the three months ended June 30, 2024 compared to the same period of 2023, and decreased by $0.4 million, or 7%, in the six months ended June 30, 2024 compared to the same period of 2023 [159]. - Government revenue decreased by $0.414 million, or 21%, in the three months ended June 30, 2024 compared to the same period in 2023 [158]. Cash Flow and Liquidity - Cash flow from operations for Q2 2024 was $(4.5) million, an improvement from $(5.1) million in Q2 2023, and $(7.7) million for the first half of 2024, up from $(10.1) million in the same period last year [147]. - As of June 30, 2024, total cash was $7.3 million, with a working capital of approximately $8.1 million [170]. - Net cash used in operating activities for the six months ended June 30, 2024 was $7.7 million, an improvement from $10.1 million in the same period in 2023 [178]. - Net cash provided by financing activities was $5.4 million for the six months ended June 30, 2024, compared to $10.6 million in 2023, primarily from borrowings under the Keep Well Agreement [180]. - The average monthly cash burn rate from operations for the six months ended June 30, 2024 was $1.3 million [170]. - The company plans to continue exploring other sources of capital and managing operating costs to increase liquidity [174]. - The company expects its cash on hand and the $5.0 million of Demand Notes from Acuitas will be sufficient to meet obligations for at least the next 12 months [177]. Operating Expenses and Profitability - Total operating expenses decreased by $1.1 million, or 17%, in the three months ended June 30, 2024 compared to the same period in 2023 [164]. - Total operating expenses decreased by $4.1 million, or 26%, in the six months ended June 30, 2024 compared to the same period in 2023 [165]. - Gross profit decreased by $0.5 million, or 25%, in the three months ended June 30, 2024 compared to the same period in 2023, and decreased by $0.5 million, or 14%, in the six months ended June 30, 2024 compared to the same period in 2023 [162]. - The gross profit margin decreased to 66% for the three months ended June 30, 2024 compared to 73% for the same period in 2023 [161]. - Operating loss improved by $0.581 million, or 13%, in the three months ended June 30, 2024 compared to the same period in 2023 [163]. Customer and Program Developments - The callable outreach pool for the WholeHealth+ program decreased by 31% to 7,511 at June 30, 2024, from 10,879 at June 30, 2023, primarily due to a health plan customer discontinuing services [148]. - A new customer agreement was announced in May 2024 with a regional Medicaid health plan for WholeHealth+ and Ontrak Engage solutions, pending state approval [148]. - The callable outreach pool for the Ontrak Engage program was 589 at June 30, 2024, reflecting the launch of this program on an à la carte basis in 2024 [149]. - The company aims to increase eligible members by signing new contracts and identifying more eligible members within existing contracts [150]. Debt and Interest Expenses - The company incurred $5.9 million in debt issuance costs for the three and six months ended June 30, 2024, related to Demand Notes [167]. - As of June 30, 2024, $6.9 million of secured debt was outstanding under the Keep Well Agreement, with $4.8 million payable after August 30, 2025 [171]. - Interest expense, net decreased from $2.223 million in the three months ended June 30, 2023 to $0.326 million in the three months ended June 30, 2024 [157]. - Interest expense, net decreased to $(326) for the three months ended June 30, 2024, an 85% reduction from $(2,223) in 2023, primarily due to a lower average outstanding loan balance [168]. Research and Development - Research and development costs decreased by $0.5 million, or 33%, in the three months ended June 30, 2024 compared to the same period in 2023 [163].

Financial Data and Key Metrics Changes - For Q2 2024, the company recorded revenue of $2.5 million, a 17% year-over-year decrease primarily due to a 7% decrease in total average enrolled members compared to Q2 2023 [14] - The average revenue per health plan enrolled member per month decreased to $463 in Q2 2024 from $504 in Q1 2024 and $528 in Q2 2023 [14] - The gross margin for Q2 2024 was 65.7%, slightly up from 63.6% in Q1 2024 but down from 72.8% in Q2 2023 [16] Business Line Data and Key Metrics Changes - The company enrolled a total of 881 members during Q2 2024, compared to 925 in Q1 2024 and 1,091 in Q2 2023 [15] - The average monthly disenrollment rate improved to 10% in Q2 2024 from 22% in Q1 2024 [16] - The company graduated 178 enrolled members during the quarter, equating to about 12% of the enrolled members at the beginning of the quarter [16] Market Data and Key Metrics Changes - The outreach pool averaged 5,764 for Q2 2024, with an annualized enrollment rate of 61%, down from 108% in Q1 2024 and up from 43% in Q2 2023 [15] - The outreach pool increased to 8,100 by the end of Q2 2024, indicating potential for increased member enrollments in the second half of the year [15] Company Strategy and Development Direction - The company signed a contract with a new regional health plan in the Northeast, which is expected to double the current outreach pool once launched [4] - The company is focused on integrating behavioral and physical health services and enhancing value-based care models through advanced technology and AI [7] - The company aims to expand its customer relationships and is in the final contracting phase with another prominent health system representing approximately 80,000 Medicare Advantage lives [12] Management's Comments on Operating Environment and Future Outlook - Management noted that many Medicaid plans are facing funding and utilization challenges, and the company's solutions are designed to address these issues [5] - The company expects revenue contributions to start in Q4 2024, but it will still be ramping up at that time [20] - Management expressed confidence in the pipeline, with approximately 26 active prospects representing about 15 million members across all lines of business [12] Other Important Information - The company ended Q2 2024 with cash of $7.3 million, down from $9.7 million at the end of the previous year [17] - The company drew down $4.5 million from the Keep Well Agreement, leaving $10.5 million available for future draws [17] - For Q3 2024, the company anticipates revenues in the range of $2.4 million to $2.8 million, excluding revenue from the new customer [18] Q&A Session Summary Question: Do you expect quarter-over-quarter revenue growth starting in the fourth quarter? - Management expects revenue contribution to start in Q4 but will still be ramping up at that time [20] Question: What is your pro forma debt? - Pro forma debt is approximately $6.5 million, including accrued interest [22] Question: How many future prospective clients do you have now? - The company has 26 active prospects representing about 15 million lives [23] Question: Have you started reaching out to CCP's eligible members in Florida? - Yes, the company has started reaching out and had a successful implementation [24] Question: How much cash did you raise since the end of the quarter? - The company has access to $10 million from the Keep Well Agreement and $15.9 million from warrants [27]

Company Performance - Ontrak, Inc. reported a quarterly loss of $0.19 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.10, representing an earnings surprise of -90% [1] - The company posted revenues of $2.45 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 5.73%, and down from $2.96 million in the same quarter last year [2] - Over the last four quarters, Ontrak has surpassed consensus EPS estimates only once and has not beaten consensus revenue estimates during this period [2] Stock Performance - Ontrak shares have declined approximately 47.5% since the beginning of the year, contrasting with the S&P 500's gain of 9% [3] - The current Zacks Rank for Ontrak is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is -$0.10 on revenues of $3 million, while for the current fiscal year, it is -$0.40 on revenues of $11.8 million [7] - The outlook for the Medical - Outpatient and Home Healthcare industry, where Ontrak operates, is currently in the top 29% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8]

Financial Performance - Q2 2024 revenue was $2.5 million, a 17% decrease year over year[3] - Revenue for Q2 2024 was $2,451,000, a decrease of 17.2% compared to $2,960,000 in Q2 2023[17] - Gross profit for Q2 2024 was $1,607,000, down 25.4% from $2,156,000 in Q2 2023[17] - Operating loss for Q2 2024 was $(4,047,000), compared to $(4,628,000) in Q2 2023, representing a 12.5% improvement[17] - Adjusted EBITDA for Q2 2024 was $(3.3) million, an 8% decline year over year[5] - Adjusted EBITDA for Q2 2024 was $(3,332,000), compared to $(3,090,000) in Q2 2023, indicating a decline of 7.8%[22] - Net loss attributable to common stockholders for Q2 2024 was $(12,527,000), compared to $(8,994,000) in Q2 2023, an increase of 39.5%[17] - Net loss for the three months ended June 30, 2024, was $10.289 million, compared to a loss of $6.756 million for the same period in 2023, representing an increase of 52.5%[23] - Non-GAAP net loss attributable to common stockholders for the six months ended June 30, 2024, was $12.223 million, down from $18.042 million in the same period of 2023, showing a 32.5% improvement[23] - Net loss per common share for the three months ended June 30, 2024, was $(0.19), compared to $(1.84) for the same period in 2023, indicating a significant reduction in losses[23] - Non-GAAP net loss per common share for the three months ended June 30, 2024, was $(0.09), compared to $(1.66) in the same period of 2023, reflecting a 94.2% improvement[23] Cash and Assets - Cash and restricted cash at the end of Q2 2024 was $7,292,000, down from $10,094,000 at the end of Q2 2023[20] - Total assets increased to $25,275,000 as of June 30, 2024, compared to $19,846,000 at the end of 2023[19] - Total liabilities rose to $9,862,000 as of June 30, 2024, up from $5,575,000 at the end of 2023[19] Membership and Outreach - Total enrolled members in the WholeHealth+ program increased to 1,752 at the end of Q2 2024, up from 1,521 at the end of Q1 2024[6] - The total callable outreach pool for WholeHealth+ was 7,511 at June 30, 2024, compared to 5,057 at March 31, 2024[6] - A new contract with a large northeast regional health plan is expected to double the outreach pool for the WholeHealth+ solution[2] - The company achieved $721 per member per month cost savings for a Medicaid health plan's members through the WholeHealth+ program[6] Technology and Innovation - The company launched the Mental Health Digital Twin technology to provide personalized insights and recommendations[6] - The company adopted the Comprehensive Healthcare Integration framework to enhance its care delivery model[6] Future Projections - The estimated revenue for the quarter ending September 30, 2024, is projected to be between $2.4 million and $2.8 million[7] Expenses and Costs - Research and development expenses for Q2 2024 were $1,026,000, down 33.1% from $1,537,000 in Q2 2023[17] - Stock-based compensation expense for the three months ended June 30, 2024, was $442,000, down from $892,000 in the same period of 2023, showing a decrease of 50.5%[23] - Debt issuance costs expensed related to Demand Notes for the three months ended June 30, 2024, amounted to $3.262 million, with no comparable expense in the same period of 2023[23] - Restructuring, severance, and related costs for the six months ended June 30, 2024, totaled $290,000, compared to $457,000 in the same period of 2023, indicating a reduction in restructuring costs[23] - Gain on termination of operating lease for the six months ended June 30, 2024, was $(471,000), reflecting a loss compared to no gain in the same period of 2023[23]