OneMedNet (ONMD) - 2024 Q1 - Quarterly Report

Revenue Performance - For the three months ended March 31, 2024, total revenue increased by 24% to $248 million, driven by a 34$317 million, representing 128% of total revenue, a decrease of 17% as a percentage of revenue compared to 145% in the prior year [120]. - General and administrative expenses rose by 152% to $1.4 million, primarily due to increased professional fees and employee-related costs [122]. - Sales and marketing expenses decreased by 12$229 thousand, attributed to a reduction in salaries and benefits [123]. - Research and development expenses decreased by 24% to $445 thousand, mainly due to a reduction in stock compensation expenses [124]. - Interest expense for the three months ended March 31, 2024, was$42 thousand, a new expense category compared to the previous year [125]. Net Loss and Financial Performance - The net loss for the three months ended March 31, 2024, was $2.1 million, a decrease of 73$7.8 million in the same period last year [118]. - For the three months ended March 31, 2024, the company reported a net loss of $2.1 million, compared to a net loss of$7.8 million for the same period in 2023, representing a 73% improvement in net loss year-over-year [135][139]. - Adjusted EBITDA for the three months ended March 31, 2024, was $(1.946) million, an increase from$(1.103) million in the same period of 2023, indicating a worsening in operational performance [135]. - The company’s net cash and cash equivalents used in operating activities were primarily due to a net loss adjusted for non-cash items, including stock-based compensation [138][139]. Cash Flow and Financing - Net cash used in operating activities was $1.5 million for the three months ended March 31, 2024, compared to$1.0 million for the same period in 2023, reflecting increased cash outflows [138][139]. - The company utilized $6 thousand in investing activities for property and equipment purchases during the three months ended March 31, 2024, while no cash was used in investing activities in the same period of 2023 [140]. - Net cash provided by financing activities was$1.7 million for the three months ended March 31, 2024, compared to $0.9 million in the same period of 2023, indicating an increase in financing inflows [141][142]. Future Outlook and Concerns - The company anticipates that its cash and cash equivalents will not be sufficient to meet foreseeable cash needs for at least the next 12 months, raising substantial doubt about its ability to continue as a going concern [143]. - Future capital requirements will depend on growth rate, research and development spending, and potential acquisitions, with uncertainty regarding the ability to raise additional financing [144]. - As of March 31, 2024, the company reported total contractual obligations of$15.979 million, with $5.874 million due within one year [146]. Business Developments - The Business Combination on November 7, 2023, resulted in a total consideration of approximately$200 million [104]. - The Company’s Common Stock began trading on the Nasdaq Global Market under the symbol "ONMD" effective November 8, 2023 [104]. Financial Metrics - The Company utilizes Adjusted EBITDA as a non-GAAP financial measure to evaluate its financial performance and operational results [130]. - Adjusted EBITDA is defined as U.S. GAAP net loss excluding interest expense, income tax expense, depreciation and amortization, stock-based compensation, and other nonrecurring items [133][134].