Streamline Health is leading an industry movement to improve hospital financial performance through pre-bill technology solutions. RevID's automated charge reconciliation accelerates cash flow by ensuring that providers can accurately capture, bill and ultimately be paid for all the care they provide. Streamline Health Solutions, Inc. (Nasdaq: STRM) enables healthcare organizations to proactively address revenue leakage and improve financial performance. We deliver integrated solutions, technology-enabled s ...

Client Concentration and Revenue Impact - Streamline Health Solutions, Inc. reported a significant client concentration, with one client accounting for approximately $5.1 million, or 10% of total revenue in fiscal 2023[32]. - A significant SaaS client, which contributed approximately 19% of revenue in fiscal 2022, did not renew its contract effective December 31, 2023, impacting future revenue projections[43]. - A client representing approximately $4.4 million, or 19%, of revenue for fiscal 2023 terminated its contract effective December 31, 2023[70]. - The company's five largest clients accounted for 38% and 46% of total revenue for the fiscal years ended January 31, 2024 and 2023, respectively[60]. - Clients derive a substantial portion of revenue from third-party payors, including Medicare and Medicaid, impacting sales and profitability[76]. Acquisitions and Growth Strategies - The company completed the acquisition of Avelead for approximately $29.7 million, which included $12.5 million in cash and $6.5 million in common stock, enhancing its revenue cycle management capabilities[35]. - The company has completed acquisitions in the past and anticipates making additional acquisitions in the future, which may involve integration challenges[61][63]. - The Company secured five significant new clients in fiscal 2023, including its first enterprise client using multiple products[152]. Financial Performance and Projections - The Company reported total revenues of $22,596,000 for the fiscal year ended January 31, 2024, a decrease of 9% from $24,889,000 in 2023[158]. - Total revenues for fiscal 2023 decreased by 9% to $22,596,000 from $24,889,000 in fiscal 2022[161]. - Net loss for the fiscal year 2024 was $18,697,000, compared to a net loss of $11,379,000 in 2023, representing a 64% increase in losses[158]. - The Company recorded a net loss of $18,697,000 for fiscal 2023, compared to a net loss of $11,379,000 in fiscal 2022[200]. - Adjusted EBITDA improved by 63%, resulting in a loss of $1,386,000 in 2024 compared to a loss of $3,757,000 in 2023[158]. - Adjusted EBITDA for fiscal 2023 was $(1,386,000), improving from $(3,757,000) in fiscal 2022, with an Adjusted EBITDA margin of (6%) compared to (15%) in the prior year[200]. Operational Changes and Workforce - As of January 31, 2024, Streamline Health had 77 employees, reflecting a net decrease of 35 employees during fiscal 2023[45]. - The Company recognized a one-time restructuring cost of $759,000 due to a reduction in force, which affected 26 employees or approximately 24% of the workforce[153]. - The Company expects to realize approximately $5,800,000 in annualized cost savings from the Strategic Restructuring initiatives[153]. Technology and Product Development - The RevID solution provides automated, daily reconciliation of clinical event activity to billing charge items, reducing revenue leakage by ensuring accurate billing prior to submission[21]. - The eValuator platform offers 100% automated coding analysis on a pre-bill basis, allowing providers to optimize reimbursements and mitigate billing risks[23]. - The Compare module automates the reconciliation of data across different software systems used by hospitals, addressing discrepancies and errors in real-time[24]. - Streamline Health's solutions are primarily delivered through a SaaS model, allowing for secure access and reducing the need for manual intervention in revenue cycle processes[20]. - The company is investing in the eValuator platform and new software technologies related to high automation and machine-based analytics, with uncertain market interest[68]. Compliance and Regulatory Environment - Regulatory changes in the healthcare industry could materially impact the demand for the company's solutions and services[71][72]. - The company is compliant with applicable environmental laws, with no anticipated material effects on capital expenditures or earnings[55]. - The company utilizes a Code of Business Conduct and Ethics to guide its employees and has an anonymous compliance hotline for reporting noncompliance[56]. Market Conditions and Risks - The company faces significant competition from larger firms with more resources, which may adversely affect its market position[77]. - The healthcare industry is evolving rapidly, necessitating the company to adapt to changing conditions to remain competitive[78]. - Rapid technology changes and short product life cycles could harm the company's business if it fails to innovate[80]. - The company acknowledges potential risks associated with client contract terminations, which could adversely affect revenue streams[70]. - Economic conditions, including the ongoing conflict between Russia and Ukraine, may adversely affect the company's business and operating results[106]. - The COVID-19 pandemic has had an adverse impact on the company's revenue and may continue to affect its financial condition[110]. Financial Obligations and Capital Structure - The company has a credit facility with Western Alliance Bank, including a term loan of $10,000,000 and a revolving line of credit of $2,000,000[101]. - The loan agreement requires principal repayments of $500,000 in the second year, $1,000,000 in the third year, $2,000,000 in the fourth year, and $3,000,000 in the fifth year[102]. - As of January 31, 2024, the company was not in compliance with certain financial covenants but received a waiver on February 7, 2024[103]. - The company is required to maintain a minimum bid price of $1.00 per share to comply with Nasdaq listing requirements[122]. - On October 24, 2023, the company received a notice from Nasdaq indicating that its stock price had been below the minimum bid price for 30 consecutive business days[123]. - The company has until April 22, 2024, to regain compliance with the minimum bid price requirement[124]. Impairments and Asset Management - The Company recorded a goodwill impairment of $9,813,000 in the fiscal year 2024[158]. - The Company recorded a goodwill impairment charge of $9.8 million due to a significant decrease in share price and a client's intent not to renew a contract[211]. - An impairment charge of $1.0 million was recognized for long-lived assets, primarily related to client relationships expected to be non-core going forward[212]. - The annual goodwill assessment for fiscal 2023 was completed as of October 31, 2023, using a weighted sum of income and market approaches[210]. - The fair value of the reporting unit was determined to be lower than the carrying value, indicating potential impairment[211]. - The Company reviews the carrying value for impairment whenever indicators suggest that assets might be impaired[209].

Financial Data and Key Metrics Changes - The net loss for the fourth quarter of fiscal 2023 was $1.4 million, an improvement from a loss of $2.2 million in the same quarter of fiscal 2022 [7] - For fiscal 2023, the total net loss was $18.7 million compared to a net loss of $11.4 million in fiscal 2022, primarily due to a noncash impairment charge [7] - Total revenue for the fourth quarter of fiscal 2023 was $5.4 million, down from $6.7 million in the fourth quarter of fiscal 2022 [78] - Fiscal 2023 total revenue was $22.6 million, compared to $24.9 million in fiscal 2022, attributed to lower revenue from legacy contracts but offset by higher SaaS revenue [78] Business Line Data and Key Metrics Changes - SaaS revenue grew by $0.3 million in the fourth quarter and $1.7 million for the fiscal year compared to the prior year periods [6] - The company reported a significant shift towards high-margin SaaS revenue, contributing to improved adjusted EBITDA [59] Market Data and Key Metrics Changes - The company anticipates a sequential decline in SaaS revenues during the first quarter of fiscal 2024 due to changes in the client base [57] - The market is seeing a trend where health systems are increasingly looking for technology vendors to solve specific problems rather than fully outsourcing solutions [82] Company Strategy and Development Direction - The company is focusing on innovation and growth strategies, including a displacement campaign, an emphasis on partnerships, and upselling within the existing client base [77] - The company aims to achieve a breakeven run rate during the second half of fiscal 2024 as it implements $3.9 million of unimplemented bookings [52][88] - The development of AI technology is a key focus, with enhancements expected to improve financial impact and user experience [26][49] Management Comments on Operating Environment and Future Outlook - Management acknowledged the challenging operating environment for health systems, emphasizing the need for technology solutions to navigate reimbursement complexities [76] - The management expressed optimism about the future, citing the necessity of their solutions in the market and the potential for growth despite past challenges [55][56] Other Important Information - The company had $3.2 million in cash as of January 31, 2024, down from $6.6 million a year earlier, with a term loan balance of $9 million [29] - Total operating expenses for fiscal 2023 were $42 million, up from $35.7 million in fiscal 2022, primarily due to a noncash impairment charge [79] Q&A Session Summary Question: How has the hospital spending environment evolved? - Management noted that while last year was challenging, there are signs of improvement as health systems are returning to focus on solving their issues [9][32] Question: Can you elaborate on the recent enterprise client wins? - Management highlighted that trust built over years with existing clients led to recent cross-selling opportunities, indicating a potential $30 million total addressable ARR [11][63] Question: What is the status of unimplemented SaaS contracts? - Management confirmed that the $15.6 million in Booked SaaS ACV includes unimplemented contracts, with a clear path to implementation expected within the year [68][88] Question: Can you provide details on the new channel partner? - Management is in negotiations for a new channel partner that would provide mutual benefits to both client bases, emphasizing the importance of a beneficial relationship [89] Question: What is the company's strategy to improve messaging and sales? - Management is working on enhancing messaging to demonstrate the impact of their solutions on the overall cost to collect, aiming to better engage with revenue cycle executives [71][91]

Exhibit 99.1 Net loss for the fourth quarter of fiscal 2023 was ($1.4 million) compared to a net loss of ($2.2 million) during the fourth quarter of fiscal 2022. Fiscal 2023 net loss totaled ($18.7 million) compared to a net loss of ($11.4 million) during fiscal 2022. The change in net loss was primarily attributable to non-cash impairment charges of $10.8 million offset by lower headcount associated with the non- renewal of a large consulting services contract, cost savings achieved through the previously ...

Following an efficient implementation process, a leading Florida-based healthcare provider is expanding its footprint and utilization of eValuator Atlanta, GA, April 29, 2024 (GLOBE NEWSWIRE) -- Streamline Health Solutions, Inc. (NASDAQ:STRM), a leading provider of solutions that enable healthcare providers to improve financial performance, announced that it has expanded its existing contract with a 1,250 bed, Epic-based academic medical center serving central Florida. The health system recently completed i ...

700-Bed health system adds eValuator™, becomes second healthcare provider leveraging both eValuator and RevID to improve revenue integrity pre-bill Atlanta, GA, April 25, 2024 (GLOBE NEWSWIRE) -- Streamline Health Solutions, Inc. (NASDAQ:STRM), a leading provider of solutions that enable healthcare providers to improve financial performance, announced that it has expanded its partnership with a 5 facility, 700-bed Oracle EHR based health system. The system has been using RevID's automated charge reconciliat ...

Atlanta, GA, April 22, 2024 (GLOBE NEWSWIRE) -- Streamline Health Solutions, Inc. ("Streamline" or the "Company") (NASDAQ:STRM), a leading provider of solutions that enable healthcare providers to proactively address revenue leakage and improve financial performance, today announced that it will release its financial results for the three and twelve month periods ended January 31, 2024 on Monday April 29, 2024 after the close of the financial markets. The Company will conduct a conference call on Tuesday, A ...

Streamline expects $4.5 million of additional liquidity will enable achievement of previously announced adjusted EBITDA breakeven of $15.5 million of installed SaaS ARR during the second half of fiscal 2024 Expanded board of directors with appointment of CEO Benjamin Stilwill and Matthew EtheridgeClosed private placement of unsecured subordinated notes and warrants and private placement of common stock resulting in aggregate gross proceeds of approximately $4.5 millionModified existing senior loan covenants ...

6 facility New York health system becomes first client leveraging both eValuator and RevID to improve revenue integrity pre-bill Atlanta, GA, Jan. 02, 2024 (GLOBE NEWSWIRE) -- Streamline Health Solutions, Inc. (NASDAQ:STRM), a leading provider of solutions that enable healthcare providers to improve financial performance, announced that it has expanded an existing contract with a 6 facility, Oracle Cerner-EHR based health system. The system has been using eValuator for pre-bill code auditing for more than 3 ...

Streamline Health Solutions Inc. (NASDAQ:STRM) Q3 2023 Earnings Call Transcript December 14, 2023 9:00 AM ET Company Participants Jacob Goldberger - Director, Investor Relations and FP&A Tee Green - Executive Chairman Ben Stilwill - Chief Executive Officer B.J. Reeves - CFO Conference Call Participants Matt Hewitt - Craig-Hallum Brooks O'Neil - Lake Street Capital Markets Operator Greetings, and welcome to the Streamline Health Solutions Third Quarter 2023 Earnings Conference Call. [Operator Instructions]. ...