Group 1 - Halper Sadeh LLC is investigating potential violations of federal securities laws and breaches of fiduciary duties related to the sale of Olo Inc. to Thoma Bravo for $10.25 per share in cash [1] - Enzo Biochem, Inc. is being investigated for its sale to Battery Ventures for $0.70 per share in cash [2] - Streamline Health Solutions, Inc. is under investigation for its sale to MDaudit for $5.34 per share in cash [2] Group 2 - Halper Sadeh LLC may seek increased consideration for shareholders, additional disclosures, and other relief on behalf of shareholders [3] - Shareholders are encouraged to contact Halper Sadeh LLC to discuss their legal rights and options [4] - The firm represents investors globally who have experienced securities fraud and corporate misconduct, recovering millions for defrauded investors [4]

[Executive Summary](index=1&type=section&id=Streamline%20Health%C2%AE%20Reports%20Fiscal%20First%20Quarter%202025%20Financial%20Results) Streamline Health reported strong Q1 fiscal 2025 financial improvements and announced a definitive merger agreement with MDaudit [Fiscal First Quarter 2025 Financial Highlights](index=1&type=section&id=Fiscal%20First%20Quarter%20Financial%20Results) Streamline Health reported a 12% increase in total revenue to $4.8 million for Q1 fiscal 2025, driven by successful implementation of new SaaS contracts Fiscal First Quarter Financial Highlights: | Metric | Q1 Fiscal 2025 | Q1 Fiscal 2024 | Change (YoY) | | :------------------------- | :------------- | :------------- | :----------- | | Total Revenue | $4.8 million | $4.3 million | +12% | | SaaS Revenue | $3.4 million | $2.7 million | +23% | | SaaS % of Total Revenue | 70% | 63% | +7 ppts | | Net Loss | ($1.6 million) | ($2.7 million) | Improved | | Adjusted EBITDA | $0.2 million | ($0.7 million) | Improved | Cash and Cash Equivalents: | Metric | As of April 30, 2025 | As of January 31, 2025 | Change (QoQ) | | :------------------------- | :------------------- | :------------------- | :----------- | | Cash & Cash Equivalents | $1.4 million | $2.2 million | ($0.8 million) | [Definitive Merger Agreement with MDaudit](index=1&type=section&id=Definitive%20Merger%20Agreement%20with%20MDaudit) Streamline Health announced a definitive merger agreement where MDaudit will acquire the company in an all-cash transaction valued at approximately $37.4 million - MDaudit will acquire Streamline Health in an all-cash transaction valued at approximately **$37.4 million**, including debt[6](index=6&type=chunk) - Shareholders will receive **$5.34 per share** in cash, representing a **138% premium** to Streamline's closing price on May 28, 2025, and a **117% premium** to its 30-day volume-weighted average stock price[6](index=6&type=chunk) - The merger is expected to close during the third quarter of calendar year 2025[6](index=6&type=chunk) [Company Overview](index=2&type=section&id=About%20Streamline) Streamline Health Solutions, Inc. provides integrated solutions and analytics to healthcare organizations for revenue cycle management [About Streamline Health Solutions, Inc.](index=2&type=section&id=About%20Streamline) Streamline Health Solutions, Inc. (Nasdaq: STRM) is a provider of integrated solutions, technology-enabled services, and analytics that enable healthcare organizations to proactively address revenue leakage and improve financial performance through compliant revenue generation - Streamline Health Solutions, Inc. enables healthcare organizations to proactively address revenue leakage and improve financial performance[7](index=7&type=chunk) - The company delivers integrated solutions, technology-enabled services, and analytics to drive compliant revenue[7](index=7&type=chunk) [Non-GAAP Financial Measures Explanation](index=2&type=section&id=Non-GAAP%20Financial%20Measures) Adjusted EBITDA is a key non-GAAP financial measure used by management to evaluate operational performance and financial health [Definition of Adjusted EBITDA](index=2&type=section&id=Non-GAAP%20Financial%20Measures) Streamline Health utilizes Adjusted EBITDA as a non-GAAP financial measure to evaluate and make operating decisions, believing it provides useful supplemental information - Adjusted EBITDA is a non-GAAP financial measure used by management to evaluate and make operating decisions[8](index=8&type=chunk) - Adjusted EBITDA is defined as net earnings (loss) plus interest expense, tax expense, depreciation and amortization, share-based compensation, significant non-recurring operating expenses, restructuring expenses, impairment of goodwill and long-lived assets, and transactional related expenses[9](index=9&type=chunk) [Legal and Regulatory Information](index=2&type=section&id=Safe%20Harbor%20Statement%20under%20the%20Private%20Securities%20Litigation%20Reform%20Act%20of%201995) This section details forward-looking statements, merger risks, proxy information, and participant disclosures for the proposed transaction [Safe Harbor Statement](index=2&type=section&id=Safe%20Harbor%20Statement%20under%20the%20Private%20Securities%20Litigation%20Reform%20Act%20of%201995) This section contains forward-looking statements regarding future events, including the proposed merger, its timing, and expected benefits - The press release contains forward-looking statements regarding future events, including the proposed merger and its expected timing and value[10](index=10&type=chunk) - These statements are subject to various known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially[10](index=10&type=chunk)[11](index=11&type=chunk)[12](index=12&type=chunk) - Readers are cautioned not to rely on these forward-looking statements, and the Company does not undertake any obligation to update them, except as required by law[12](index=12&type=chunk) [Additional Information and Where to Find It](index=4&type=section&id=Additional%20Information%20and%20Where%20to%20Find%20It) This press release does not constitute an offer to sell or a solicitation of an offer to buy securities, with important merger-related information to be filed with the SEC - The Company intends to file a proxy statement on Schedule 14A with the SEC in connection with the proposed merger[13](index=13&type=chunk) - Stockholders are advised to read the proxy statement and other documents filed with the SEC for important information about the proposed merger[13](index=13&type=chunk) - All such documents will be available free of charge at the SEC's website (http://www.sec.gov) and the Company's website (www.streamlinehealth.net)[13](index=13&type=chunk) [Participants in the Solicitation](index=4&type=section&id=Participants%20in%20the%20Solicitation) The Company's directors and executive officers may be deemed participants in the solicitation of proxies from stockholders regarding the proposed merger - The Company's directors and executive officers may be deemed participants in the solicitation of proxies for the proposed merger[14](index=14&type=chunk) - Information regarding their ownership of common stock and interests in the merger is available in the Company's Form 10-K/A and will be set forth in the proxy statement[14](index=14&type=chunk) [Company Contact](index=4&type=section&id=Company%20Contact) Investor inquiries are directed to Jacob Goldberger, Vice President of Finance, for corporate and financial information [Investor Relations Contact](index=4&type=section&id=Company%20Contact) For investor inquiries, Jacob Goldberger, Vice President of Finance, serves as the primary contact - Contact Person: Jacob Goldberger, Vice President, Finance[15](index=15&type=chunk) - Phone: 303-887-9625[15](index=15&type=chunk) - Email: jacob.goldberger@streamlinehealth.net[15](index=15&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=5&type=section&id=STREAMLINE%20HEALTH%20SOLUTIONS%2C%20INC.%20UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) This section presents Q1 2025 unaudited statements of operations, balance sheets, cash flows, and Adjusted EBITDA reconciliation [Statements of Operations](index=5&type=section&id=STREAMLINE%20HEALTH%20SOLUTIONS%2C%20INC.%20UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For the three months ended April 30, 2025, Streamline Health reported total revenues of $4.81 million, an increase from $4.33 million in the prior year Unaudited Condensed Consolidated Statements of Operations (Three Months Ended April 30): | Metric | 2025 (in thousands) | 2024 (in thousands) | | :-------------------------------- | :------------------ | :------------------ | | **Revenues:** | | | | Software as a service | $3,359 | $2,723 | | Maintenance and support | $737 | $890 | | Professional fees and licenses | $714 | $717 | | **Total revenues** | **$4,810** | **$4,330** | | **Operating expenses:** | | | | Cost of software as a service | $1,380 | $1,348 | | Cost of maintenance and support | $32 | $42 | | Cost of professional fees and licenses | $808 | $887 | | Selling, general and administrative expense | $2,788 | $3,192 | | Research and development | $903 | $1,111 | | **Total operating expenses** | **$5,911** | **$6,580** | | **Operating loss** | **($1,101)** | **($2,250)** | | Interest expense | ($543) | ($465) | | Valuation adjustments | — | ($24) | | Other | ($1) | — | | **Loss before income taxes** | **($1,645)** | **($2,739)** | | Income tax benefit | — | — | | **Net loss** | **($1,645)** | **($2,739)** | | **Net loss per common share – basic and diluted** | **($0.40)** | **($0.71)** | | Weighted average number of common shares – basic and diluted | 4,128,029 | 3,881,606 | [Balance Sheets](index=6&type=section&id=STREAMLINE%20HEALTH%20SOLUTIONS%2C%20INC.%20UNAUDITED%20CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of April 30, 2025, total assets were $35.83 million, a slight increase from $35.58 million at January 31, 2025 Unaudited Condensed Consolidated Balance Sheets (as of): | Metric | April 30, 2025 (in thousands) | January 31, 2025 (in thousands) | | :-------------------------------- | :---------------------------- | :---------------------------- | | **ASSETS** | | | | Cash and cash equivalents | $1,449 | $2,183 | | Accounts receivable, net | $4,184 | $1,585 | | Contract receivables | $637 | $1,571 | | Prepaid and other current assets | $310 | $438 | | **Total current assets** | **$6,580** | **$5,777** | | Property and equipment, net | $45 | $49 | | Capitalized software development costs, net | $4,778 | $4,850 | | Intangible assets, net | $10,026 | $10,435 | | Goodwill | $13,276 | $13,276 | | Other non-current assets | $1,122 | $1,192 | | **Total non-current assets** | **$29,247** | **$29,802** | | **Total assets** | **$35,827** | **$35,579** | | **LIABILITIES AND STOCKHOLDERS' EQUITY** | | | | Accounts payable | $1,547 | $1,541 | | Accrued expenses | $1,626 | $1,921 | | Term loan, net | $7,277 | $7,709 | | Line of credit | $2,000 | $1,000 | | Notes payable, net | $4,703 | $4,415 | | Deferred revenues (current) | $7,126 | $6,099 | | Acquisition earnout liability | $377 | $377 | | **Total current liabilities** | **$24,656** | **$23,062** | | Deferred revenues (non-current) | $116 | $240 |\ | **Total non-current liabilities** | **$116** | **$240** | | **Total liabilities** | **$24,772** | **$23,302** | | Common stock | $43 | $43 | | Additional paid in capital | $138,515 | $138,092 | | Accumulated deficit | ($127,503) | ($125,858) | | **Total stockholders' equity** | **$11,055** | **$12,277** | | **Total liabilities and stockholders' equity** | **$35,827** | **$35,579** | [Statements of Cash Flows](index=7&type=section&id=STREAMLINE%20HEALTH%20SOLUTIONS%2C%20INC.%20UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) For the three months ended April 30, 2025, net cash used in operating activities was ($0.97 million), an improvement from ($1.20 million) in the prior year Unaudited Condensed Consolidated Statements of Cash Flows (Three Months Ended April 30): | Metric | 2025 (in thousands) | 2024 (in thousands) | | :-------------------------------- | :------------------ | :------------------ | | **Net loss** | **($1,645)** | **($2,739)** | | Depreciation and amortization | $1,042 | $1,120 | | Accrued interest expense - notes payable | $189 | $152 | | Valuation adjustments | — | $24 | | Share-based compensation expense | $430 | $499 | | Changes in assets and liabilities: | | | | Accounts and contract receivables | ($1,665) | $17 | | Other assets | $66 | ($100) | | Accounts payable | $6 | ($161) | | Accrued expenses and other liabilities | ($295) | ($262) | | Deferred revenue | $903 | $251 | | **Net cash used in operating activities** | **($969)** | **($1,199)** | | Capitalization of software development costs | ($232) | ($232) | | **Net cash used in investing activities** | **($232)** | **($232)** | | Repayment of bank term loan | ($500) | ($250) | | Repayment of line of credit | — | ($1,500) | | Proceeds from issuance of common stock | — | $100 | | Proceeds from notes payable | — | $4,400 | | Proceeds from line of credit | $1,000 | — | | Payments of acquisition earnout liabilities | — | ($447) | | Payments for deferred financing costs | — | ($16) | | Repurchase of common shares to satisfy employee tax withholding | ($33) | ($67) | | **Net cash provided by financing activities** | **$467** | **$2,220** | | **Net decrease in cash and cash equivalents** | **($734)** | **$789** | | Cash and cash equivalents at beginning of period | $2,183 | $3,190 | | **Cash and cash equivalents at end of period** | **$1,449** | **$3,979** | [Reconciliation of Net Loss to Non-GAAP Adjusted EBITDA](index=8&type=section&id=STREAMLINE%20HEALTH%20SOLUTIONS%2C%20INC.%20RECONCILIATION%20OF%20NET%20LOSS%20TO%20NON-GAAP%20ADJUSTED%20EBITDA) The reconciliation shows a significant improvement in Adjusted EBITDA, moving from a loss of ($0.70 million) in Q1 2024 to a positive $0.23 million in Q1 2025 Reconciliation of Net Loss to Non-GAAP Adjusted EBITDA (Three Months Ended): | Metric | April 30, 2025 (in thousands) | April 30, 2024 (in thousands) | | :-------------------------------- | :---------------------------- | :---------------------------- | | Net Loss | ($1,645) | ($2,739) | | Interest expense | $543 | $465 | | Depreciation and amortization | $875 | $1,017 | | **EBITDA** | **($227)** | **($1,257)** | | Share-based compensation expense | $430 | $499 | | Non-cash valuation adjustments | — | $24 | | Acquisition-related costs, severance, and transaction-related bonuses | $23 | $31 | | **Adjusted EBITDA** | **$226** | **($703)** |

PART I. FINANCIAL INFORMATION [Item 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS](index=3&type=section&id=Item%201.%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section presents the unaudited condensed consolidated financial statements, including balance sheets, statements of operations, stockholders' equity, and cash flows, along with detailed notes explaining the basis of presentation, significant accounting policies, business combinations, operating leases, debt, income taxes, equity, commitments, related party transactions, and subsequent events [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The Condensed Consolidated Balance Sheets provide a snapshot of the company's financial position at April 30, 2025, and January 31, 2025, showing a slight increase in total assets, an increase in total liabilities, and a decrease in total stockholders' equity Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | April 30, 2025 | January 31, 2025 | | :-------------------------------- | :------------- | :--------------- | | Total Assets | $35,827 | $35,579 | | Total Liabilities | $24,772 | $23,302 | | Total Stockholders' Equity | $11,055 | $12,277 | | Cash and cash equivalents | $1,449 | $2,183 | | Accounts receivable, net | $4,184 | $1,585 | | Deferred revenues (current) | $7,126 | $6,099 | | Term loan, net | $7,277 | $7,709 | | Line of credit | $2,000 | $1,000 | | Notes payable, net | $4,703 | $4,415 | [Unaudited Condensed Consolidated Statements of Operations](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) The Unaudited Condensed Consolidated Statements of Operations show a significant reduction in net loss for the three months ended April 30, 2025, compared to the prior year, driven by increased total revenues, particularly from Software as a Service (SaaS), and reduced operating expenses Unaudited Condensed Consolidated Statements of Operations Highlights (Three Months Ended April 30, in thousands) | Metric | 2025 | 2024 | Change | % Change | | :----------------------------------- | :----- | :----- | :----- | :------- | | Total Revenues | $4,810 | $4,330 | $480 | 11% | | Software as a service revenue | $3,359 | $2,723 | $636 | 23% | | Maintenance and support revenue | $737 | $890 | $(153) | (17)% | | Professional fees and licenses revenue | $714 | $717 | $(3) | (0)% | | Operating Loss | $(1,101) | $(2,250) | $1,149 | (51)% | | Net Loss | $(1,645) | $(2,739) | $1,094 | (40)% | | Basic and Diluted Net Loss Per Share | $(0.40) | $(0.71) | $0.31 | (44)% | [Unaudited Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) The Unaudited Condensed Consolidated Statements of Stockholders' Equity detail the changes in equity for the three months ended April 30, 2025, and 2024, primarily reflecting the impact of net loss and share-based compensation Stockholders' Equity Changes (Three Months Ended April 30, in thousands) | Metric | April 30, 2025 | January 31, 2025 | | :-------------------------- | :------------- | :--------------- | | Total Stockholders' Equity | $11,055 | $12,277 | | Net Loss | $(1,645) | $(1,645) | | Share-based compensation | $456 | $456 | | Common stock (Shares) | 4,324,091 | 4,264,482 | [Unaudited Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The Unaudited Condensed Consolidated Statements of Cash Flows indicate a net decrease in cash and cash equivalents for the three months ended April 30, 2025, primarily due to cash used in operating activities and reduced cash provided by financing activities compared to the prior year Cash Flow Summary (Three Months Ended April 30, in thousands) | Cash Flow Activity | 2025 | 2024 | | :----------------------------------- | :----- | :----- | | Net cash used in operating activities | $(969) | $(1,199) | | Net cash used in investing activities | $(232) | $(232) | | Net cash provided by financing activities | $467 | $2,220 | | Net decrease in cash and cash equivalents | $(734) | $789 | | Cash and cash equivalents at end of period | $1,449 | $3,979 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed explanations and disclosures supporting the condensed consolidated financial statements, covering the company's business, accounting policies, debt, equity, and significant events, including a pending merger and ongoing going concern uncertainties [NOTE 1 — BASIS OF PRESENTATION](index=9&type=section&id=NOTE%201%20%E2%80%94%20BASIS%20OF%20PRESENTATION) This note outlines the company's business as a healthcare information technology solutions provider, the basis for preparing the financial statements, and significant events such as a reverse stock split and a pending merger, while also highlighting a going concern uncertainty - The Company operates as a single segment, providing **healthcare information technology solutions** and associated services, including licensing **Coding & Clinical Documentation Improvement (CDI) solutions**, **eValuator coding analysis platform**, **RevID**, and other workflow software applications, as well as audit and consulting services[21](index=21&type=chunk)[23](index=23&type=chunk) - The Company's **financial statements** are prepared on a **going concern basis**, but management projects probable **non-compliance with certain financial covenants** under its current credit agreement in the **next twelve months**, raising substantial doubt about its ability to continue as a **going concern**[25](index=25&type=chunk)[27](index=27&type=chunk) - A **1-for-15 reverse stock split** was effected on **October 4, 2024**, retrospectively adjusting all **shares** and per-**share** data without changing authorized **shares** or par value[29](index=29&type=chunk)[30](index=30&type=chunk) - On **May 29, 2025**, the Company entered into a **Merger Agreement with Mist Holding Co.**, under which the Company will become a wholly-owned subsidiary of **Parent**[31](index=31&type=chunk) [NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=11&type=section&id=NOTE%202%20%E2%80%94%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This note details the company's key accounting policies, including its single operating segment, revenue recognition practices, fair value measurements for financial instruments, equity award accounting, and recent accounting pronouncements, emphasizing the use of estimates in financial reporting - The Company operates as a **single operating segment**, with the Chief Executive Officer (CODM) reviewing consolidated **financial information** to assess performance and allocate resources[33](index=33&type=chunk) Disaggregated Revenue by Type (Three Months Ended April 30, in thousands) | Revenue Type | 2025 | 2024 | | :----------------------- | :----- | :----- | | Software as a service | $3,359 | $2,723 | | Maintenance and support | $737 | $890 | | Professional fees and licenses | $714 | $717 | | Total revenues | $4,810 | $4,330 | - **Cash and cash equivalents** are classified as **Level 1 fair value measurements**. The **term loan**, **line of credit**, and **notes payable** are **Level 2 measurements**. The **acquisition earnout liability** transferred out of **Level 3** as of **April 30, 2024**[39](index=39&type=chunk)[40](index=40&type=chunk)[43](index=43&type=chunk)[44](index=44&type=chunk) - Approximately **$2,701,000** in **revenue** was recognized from **deferred revenues outstanding** as of **January 31, 2025**, during the **three months ended April 30, 2025**. **Remaining performance obligations** were **$28,988,000** as of **April 30, 2025**, with **48%** expected to be recognized over the next **12 months**[49](index=49&type=chunk) - **Share-based compensation expense** was **$430,000** for the **three months ended April 30, 2025**, compared to **$499,000** for the same period in **2024**[55](index=55&type=chunk) - **Warrants** were initially classified as a **liability** due to a potential cash settlement feature but were reclassified to **equity** after the **Registration Statement on Form S-3** was declared effective on **June 10, 2024**, eliminating the cash settlement feature[99](index=99&type=chunk)[100](index=100&type=chunk) [NOTE 3 — BUSINESS COMBINATION](index=21&type=section&id=NOTE%203%20%E2%80%94%20BUSINESS%20COMBINATION) This note details the acquisition of Avelead Consulting, LLC

Core Insights - Streamline Health Solutions reported a total revenue increase of approximately 12% to $4.8 million for the first quarter of fiscal 2025 compared to $4.3 million in the same period of fiscal 2024, driven by new SaaS contracts despite some client non-renewals [2][4] - SaaS revenue grew by 23% to $3.4 million, representing 70% of total revenue in Q1 2025, up from 63% in Q1 2024 [3] - The company experienced a reduced net loss of $1.6 million in Q1 2025, an improvement from a net loss of $2.7 million in Q1 2024, attributed to increased revenue and cost savings from strategic restructuring [4][5] - Streamline Health Solutions entered into a definitive merger agreement with MDaudit for an all-cash transaction valued at approximately $37.4 million, with a share price premium of 138% over the last trading day prior to the announcement [6] Financial Performance - Total revenue for Q1 2025 was $4.8 million, a 12% increase from $4.3 million in Q1 2024 [2] - SaaS revenue for Q1 2025 was $3.4 million, a 23% increase from $2.7 million in Q1 2024, making up 70% of total revenue [3] - Adjusted EBITDA improved to $0.2 million in Q1 2025 from a loss of $0.7 million in Q1 2024, reflecting the company's focus on SaaS revenue growth and cost savings [5][18] Balance Sheet and Cash Flow - As of April 30, 2025, cash and cash equivalents were $1.4 million, down from $2.2 million as of January 31, 2025 [4][16] - Total assets increased to $35.8 million as of April 30, 2025, compared to $35.6 million as of January 31, 2025 [16] - Total liabilities rose to $24.8 million as of April 30, 2025, from $23.3 million as of January 31, 2025 [16] Merger Agreement - The merger with MDaudit is expected to close in the third quarter of calendar year 2025, with MDaudit acquiring all outstanding shares of Streamline stock for $5.34 per share [6]

Core Points - Class Action Attorney Juan Monteverde's firm, Monteverde & Associates PC, is investigating Streamline Health Solutions, Inc. regarding its sale to MDaudit for $5.34 per share [1] - The firm has a successful track record in recovering millions for shareholders and is recognized as a Top 50 Firm in the 2024 ISS Securities Class Action Services Report [1] Company Information - Monteverde & Associates PC is headquartered in the Empire State Building, New York City, and operates as a national class action securities firm [2] - The firm has a history of litigating and recovering money for shareholders, including cases that have reached the U.S. Supreme Court [2] Contact Information - Shareholders with concerns regarding Streamline Health Solutions can contact Juan Monteverde via email or telephone for additional information [3]

Core Viewpoint - MDaudit is set to acquire Streamline Health Solutions in a cash transaction valued at approximately $37.4 million, which includes debt, aiming to enhance financial performance and billing compliance in healthcare organizations [2][3]. Company Overview - MDaudit is a cloud-based platform focused on continuous risk monitoring, helping healthcare organizations minimize billing risks and maximize revenues [2][12]. - Streamline Health Solutions provides solutions that enable healthcare providers to improve financial performance and address revenue leakage [13]. Merger Details - The acquisition will involve MDaudit purchasing all outstanding shares of Streamline stock for $5.34 per share, representing a premium of 138% over Streamline's closing price on May 28, 2025 [3][7]. - The merger is expected to close in the third quarter of 2025, after which Streamline will become a wholly-owned subsidiary of MDaudit and its stock will no longer be listed on the Nasdaq [8]. Strategic Rationale - The merger aims to combine Streamline's pre-bill integrity solutions with MDaudit's billing compliance and revenue integrity platform, enhancing the ability to unify data silos and improve revenue cycle management [4][5]. - Both companies share a vision of improving financial stability for healthcare organizations, which is increasingly important given the financial pressures faced by health systems [5][6]. Financial Implications - The combined entity will support healthcare organizations with an aggregate Net Patient Revenue exceeding $300 billion, providing enhanced visibility and actionable insights across the revenue cycle [1][4].

Financial Data and Key Metrics Changes - As of January 31, 2025, the company reported total revenue of $17.9 million for the twelve months ended, down from $22.6 million in the previous fiscal year [14] - The net loss for the fourth quarter of fiscal 2024 was $2.1 million, compared to a net loss of $1.4 million in the same quarter of the previous year [16] - Cash and cash equivalents decreased to $2.2 million as of January 31, 2025, from $3.2 million a year earlier [17] Business Line Data and Key Metrics Changes - Booked SaaS Annual Contract Value (ACV) was $14 million as of January 31, 2025, and increased to $14.6 million by April 30, 2025 [14][16] - SaaS revenue for the fourth quarter of fiscal 2024 was $3.1 million, representing 66% of total revenue, down from $3.4 million or 64% in the same quarter of the previous year [16] Market Data and Key Metrics Changes - The company experienced a churn of $700,000 primarily due to two clients lost to acquisitions [7] - The denial prevention functionality is expected to significantly enhance the financial impact of the eValuator platform, potentially increasing inpatient financial impact by over 15% and doubling the impact on outpatient cases [10] Company Strategy and Development Direction - The company has decided to discontinue selling its quality module as an independent unit to focus resources on initiatives that expand the core value proposition [9] - The launch of the denial prevention functionality is seen as timely, addressing the surge in denial activity from commercial payers [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving an EBITDA profitable run rate during the first half of fiscal 2025 [14] - The company is focusing on enhancing client relationships and leveraging successful client stories to drive bookings [28] Other Important Information - The company amended certain financial covenants related to its senior term loan and revolving line of credit on March 28, 2025 [17] - The implementation timeline for eValuator has improved significantly, with recent implementations completed in as little as 42 days [26] Q&A Session Summary Question: Can you talk about the denials prevention product and its marketability? - Management highlighted the importance of integrating denial signals into the pre-bill workflow to enhance claim accuracy, which clients find immensely valuable [22][23] Question: What changes have enabled quicker implementations? - The company has standardized data and training processes, significantly reducing implementation times from four to six months to two to three months [27] Question: What gives confidence in building momentum for bookings? - Management noted increased top-of-funnel activity driven by client success stories and recent events, indicating a positive trend in bookings [28][29]

Financial Performance - Total revenues for fiscal year 2024 decreased to $17,901,000, down 20.5% from $22,596,000 in fiscal year 2023[246] - Net loss for fiscal year 2024 was $10,159,000, an improvement from a net loss of $18,697,000 in fiscal year 2023, representing a 45.4% reduction in losses[246] - Operating expenses for fiscal year 2024 totaled $25,930,000, down 38.5% from $42,243,000 in fiscal year 2023[246] - The company reported a basic and diluted earnings per share of $(2.53) for fiscal year 2024, compared to $(4.96) for fiscal year 2023[246] - Operating loss for fiscal year 2024 was $8.03 million, compared to an operating loss of $19.65 million in fiscal year 2023, indicating an improvement[263] - The Company recorded a net loss of $10.16 million for fiscal year 2024, compared to a net loss of $18.7 million in fiscal year 2023[263] Assets and Liabilities - Total assets decreased from $41,735,000 in 2024 to $35,579,000 in 2025, representing a decline of approximately 14.4%[242] - Cash and cash equivalents decreased from $3,190,000 in 2024 to $2,183,000 in 2025, a reduction of about 31.5%[242] - Accounts receivable decreased from $4,237,000 in 2024 to $1,585,000 in 2025, a decline of approximately 62.6%[242] - Total current liabilities increased to $23,062,000 in January 2025, up from $13,682,000 in January 2024[244] - Total stockholders' equity decreased to $12,277,000 in January 2025, down from $18,814,000 in January 2024[244] - The Company has approximately $13.1 million in total outstanding debt as of January 31, 2025, classified as a current liability[261] Cash Flow and Financing - The Company anticipates the need for additional liquidity in the next twelve months due to insufficient cash flow from operations[260] - The Company recorded a net cash used in operating activities of $1,514,000 for fiscal year 2024, an improvement from $2,215,000 in fiscal year 2023[251] - The Company recorded a term loan principal balance of $7,500,000 as of January 31, 2025, down from $9,000,000 in the previous year, representing a decrease of approximately 16.67%[360] - The Company has a revolving line of credit with an outstanding balance of $1,000,000 as of January 31, 2025, compared to $1,500,000 in the previous year, indicating a reduction of 33.33%[364] - The Company incurred $200,000 in financing costs related to the Loan Agreement, which are being amortized over the term of the loan[363] Research and Development - Research and development expenses for fiscal year 2024 were $4,629,000, a decrease of 18.8% from $5,704,000 in fiscal year 2023[246] - The Company recorded an impairment of long-lived assets amounting to $963,000 in fiscal year 2023[281] - Capitalized software development costs for internal-use software amounted to $4,850,000 and $5,511,000 as of January 31, 2025 and 2024, respectively[283] Impairment and Valuation - The Company recorded a goodwill impairment of $9,813,000 for fiscal 2023[328] - The Company identified indicators of impairment due to a legacy client not renewing its contract and initiated impairment testing[387][392] - The Company has established a valuation allowance for deferred tax assets when it is more likely than not that some or all of the deferred tax assets will not be realized[338] Tax Positions - The Company recorded a reserve for uncertain tax positions of $331,000 as of January 31, 2025, down from $340,000 in 2024[404] - The federal tax benefit at the statutory rate for 2024 is $2,134,000, compared to $3,887,000 in 2023, indicating a decrease of approximately 45%[400] - The total deferred tax assets increased to $21,670,000 in 2025 from $19,651,000 in 2024, primarily due to changes in allowances and deferred revenue[400] Strategic Restructuring - The company executed a Strategic Restructuring on October 16, 2023, leading to a reduction of 26 employees, approximately 24% of its workforce, incurring one-time restructuring costs of approximately $759,000[344] - The company has recognized all expenses associated with the Strategic Restructuring as of the end of fiscal 2023, including severance and professional fees[344] Revenue Recognition - The Company utilizes the portfolio approach for revenue recognition, applying the revenue model to a portfolio of contracts with similar characteristics[304] - Revenue recognized over time was $17,617,000 in fiscal year 2024, down from $22,358,000 in fiscal year 2023, indicating a decline of approximately 21%[311] - Deferred revenue as of January 31, 2025, was $28,899,000, with an expectation to recognize approximately 47% over the next 12 months[312]

Financial Data and Key Metrics Changes - Total revenue for Q4 fiscal 2024 was $4.7 million, down from $5.4 million in Q4 fiscal 2023 [14] - For the twelve months ended January 31, 2025, revenue totaled $17.9 million, compared to $22.6 million in fiscal 2024 [14] - SaaS revenue for Q4 fiscal 2024 was $3.1 million, representing 66% of total revenue, down from $3.4 million or 64% in Q4 fiscal 2023 [15] - Net loss for Q4 fiscal 2024 was $2.1 million, compared to a net loss of $1.4 million in Q4 fiscal 2023 [16] - Cash and cash equivalents as of January 31, 2025, were $2.2 million, down from $3.2 million a year earlier [17] Business Line Data and Key Metrics Changes - Booked SaaS ACV as of January 31, 2025, was $14 million, increasing to $14.6 million by April 30, 2025 [7][14] - The company experienced $1.4 million in new SaaS ACV bookings, offset by $700,000 in churn due to client acquisitions [7] - SaaS revenue for the twelve months ending January 31, 2025, totaled $11.8 million, down from $14.1 million in the previous fiscal year [15] Market Data and Key Metrics Changes - The company noted a surge in denial activity across the industry, particularly from commercial payers, impacting revenue cycle management [11] - The introduction of denial prevention functionality is expected to significantly enhance the financial impact of the eValuator platform [10] Company Strategy and Development Direction - The company has decided to discontinue selling its quality module as an independent unit to focus resources on more impactful initiatives like denial prevention [9] - The new denial prevention functionality is expected to expand the inpatient financial impact of eValuator by over 15% and potentially double the impact on outpatient cases [10] - The company aims to achieve an EBITDA profitable run rate during the first half of fiscal 2025 [14][13] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of helping healthcare systems succeed in revenue cycle management to ensure they are paid for the care provided [13] - The company is optimistic about future bookings due to increased client engagement and successful user stories shared at conferences [27] Other Important Information - The company amended certain financial covenants related to its senior term loan and revolving line of credit on March 28, 2025 [17] - An additional $1 million was drawn from the revolving line of credit after the fiscal period ended [18] Q&A Session Summary Question: Can you talk about the denials prevention product and its marketability? - Management highlighted the value of the new denial prevention functionality, which helps clients ensure claims are accurate before submission, addressing a significant industry issue [22][23] Question: What changes have enabled quicker implementation timelines? - Management noted improvements in standardizing data and training, resulting in reduced implementation times for eValuator from four to six months to two to three months [25][26] Question: What gives confidence in building momentum for stronger bookings? - Management indicated that increased client engagement and successful case studies shared at events have led to more top-of-funnel activity, suggesting a positive trend in bookings [27][28]

[Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) This section provides an overview of the company's financial performance, including management's strategic insights, detailed GAAP and non-GAAP results for fiscal year 2024, and future business outlook [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlights over $210 million in annualized client financial impact and focuses on targeted innovation for fiscal 2025, including new denial prevention functionality - The company's solutions are delivering an annualized financial impact of more than **$210 million** to its clients[2](index=2&type=chunk) - Fiscal 2025 will focus on targeted innovation, highlighted by the new denial prevention functionality within the eValuator solution, designed to help clients prevent denials in real-time[2](index=2&type=chunk) [Fiscal Fourth Quarter and Full Year 2024 GAAP Financial Results](index=1&type=section&id=Fiscal%20Fourth%20Quarter%20and%20Full%20Year%202024%20GAAP%20Financial%20Results) Fiscal 2024 GAAP results show total revenue decreased to $17.9 million, while net loss significantly improved to ($10.2 million) due to the absence of prior year impairment charges Fiscal Year Revenue Performance (GAAP) | Category | Fiscal Year 2024 | Fiscal Year 2023 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $17.9 million | $22.6 million | -20.8% | | SaaS Revenue | $11.8 million | $14.1 million | -16.3% | Quarterly Revenue Performance (GAAP) | Category | Q4 2024 | Q4 2023 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $4.7 million | $5.4 million | -13.0% | | SaaS Revenue | $3.1 million | $3.4 million | -8.8% | Net Loss Performance (GAAP) | Period | Net Loss 2024 | Net Loss 2023 | | :--- | :--- | :--- | | Fiscal Year | ($10.2 million) | ($18.7 million) | | Fourth Quarter | ($2.1 million) | ($1.4 million) | - The improvement in the full-year net loss was primarily the result of **$10.8 million** of non-cash impairment charges incurred in fiscal 2023 that did not recur in fiscal 2024[5](index=5&type=chunk) - As of January 31, 2025, cash and cash equivalents were **$2.2 million**, down from **$3.2 million** a year prior. The outstanding balance on the revolving credit facility was reduced to **$1.0 million** from **$1.5 million**[6](index=6&type=chunk) [Fiscal Fourth Quarter and Full Year 2024 Non-GAAP Financial Results](index=2&type=section&id=Fiscal%20Fourth%20Quarter%20and%20Full%20Year%202024%20Non-GAAP%20Financial%20Results) Fiscal 2024 Non-GAAP results show Adjusted EBITDA improved to a ($1.3 million) loss, while Booked SaaS ACV decreased to $14.0 million but is projected to recover Adjusted EBITDA Performance (Non-GAAP) | Period | Adjusted EBITDA 2024 | Adjusted EBITDA 2023 | | :--- | :--- | :--- | | Fiscal Year | ($1.3 million) | ($1.4 million) | | Fourth Quarter | $35,000 | $0.4 million | Booked SaaS Annual Contract Value (ACV) | Date | Total Booked SaaS ACV | Implemented ACV | Unimplemented ACV | | :--- | :--- | :--- | :--- | | Jan 31, 2024 | $15.0 million | N/A | N/A | | Jan 31, 2025 | $14.0 million | $12.3 million | $1.7 million | | Apr 30, 2025 (Expected) | $14.6 million | $13.1 million | $1.5 million | - The decrease in booked SaaS ACV was largely due to previously reported client non-renewals, which was partially offset by **$3.5 million** of new bookings during fiscal year 2025[8](index=8&type=chunk) [Business Outlook](index=2&type=section&id=Business%20Outlook) The company expects to achieve a positive Adjusted EBITDA run rate in the first half of fiscal 2025 but refrains from specific bookings guidance due to timing unpredictability - The company reiterated its expectation to achieve an adjusted EBITDA positive run rate during the first half of fiscal 2025[10](index=10&type=chunk) - Due to continued unpredictability in the timing of closing new contracts, the Company has not provided more specific guidance related to the timing of bookings[10](index=10&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's consolidated financial statements, including detailed statements of operations, balance sheets, and cash flows for the reported periods [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Fiscal year 2024 statements of operations show total revenues decreased to $17.9 million, while operating expenses significantly declined, leading to a reduced net loss of ($10.2 million) Fiscal Year 2024 vs 2023 Statement of Operations Highlights | Metric | Fiscal Year 2024 | Fiscal Year 2023 | | :--- | :--- | :--- | | Total Revenues | $17,901,000 | $22,596,000 | | Total Operating Expenses | $25,930,000 | $42,243,000 | | Impairment Charges | $0 | $10,776,000 | | Operating Loss | ($8,029,000) | ($19,647,000) | | Net Loss | ($10,159,000) | ($18,697,000) | | Basic and Diluted EPS | ($2.53) | ($4.96) | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) As of January 31, 2025, total assets decreased to $35.6 million, primarily due to lower cash and receivables, resulting in a decline in total stockholders' equity to $12.3 million Balance Sheet Highlights (As of Jan 31) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $2,183,000 | $3,190,000 | | Total Current Assets | $5,777,000 | $8,836,000 | | Total Assets | $35,579,000 | $41,735,000 | | Total Current Liabilities | $23,062,000 | $13,682,000 | | Total Liabilities | $23,302,000 | $22,921,000 | | Total Stockholders' Equity | $12,277,000 | $18,814,000 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Fiscal year 2024 cash flow statements show improved net cash used in operating activities at ($1.5 million), with a net decrease in cash and cash equivalents of ($1.0 million) for the period Cash Flow Summary (Fiscal Year) | Cash Flow Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | ($1,514,000) | ($2,215,000) | | Net cash used in investing activities | ($858,000) | ($1,621,000) | | Net cash provided by financing activities | $1,365,000 | $428,000 | | **Net decrease in cash** | **($1,007,000)** | **($3,408,000)** | | Cash at end of period | $2,183,000 | $3,190,000 | [Supplemental Information](index=2&type=section&id=Supplemental%20Information) This section provides supplemental financial data, including the reconciliation of GAAP net loss to non-GAAP Adjusted EBITDA, and details for the upcoming conference call [Reconciliation of Net Loss to Non-GAAP Adjusted EBITDA](index=8&type=section&id=Reconciliation%20of%20Net%20Loss%20to%20Non-GAAP%20Adjusted%20EBITDA) This section reconciles the GAAP net loss to non-GAAP Adjusted EBITDA, showing an Adjusted EBITDA loss of ($1.3 million) for fiscal year 2024 after various adjustments Reconciliation of Net Loss to Adjusted EBITDA (Fiscal Year) | (in thousands) | 2024 | 2023 | | :--- | :--- | :--- | | Net loss | $(10,159) | $(18,697) | | Plus: Interest, Taxes, D&A | $6,357 | $5,254 | | Plus: Share-based compensation | $1,964 | $2,102 | | Plus: Impairment charges | $0 | $10,776 | | Other adjustments | $542 | $(821) | | **Adjusted EBITDA** | **$(1,296)** | **$(1,386)** | - Adjusted EBITDA is a non-GAAP measure defined as net earnings (loss) adjusted for interest, taxes, depreciation, amortization, share-based compensation, and other significant non-recurring or transactional expenses[15](index=15&type=chunk) [Conference Call Information](index=2&type=section&id=Conference%20Call%20Information) Details for the upcoming conference call on May 2, 2025, at 9:00 AM ET are provided, including access methods and replay availability - A conference call will be held on Friday, May 2, 2025, at **9:00 AM ET**[11](index=11&type=chunk) - A replay of the call will be available by phone until May 9, 2025, and an online replay will be available for six months in the Investor Relations section of the company's website[12](index=12&type=chunk)