OneMedNet (ONMD) - 2024 Q2 - Quarterly Report

Revenue Performance - Total revenue for the three months ended June 30, 2024, increased by 31% to $227 million compared to$173 million in the same period of 2023[134]. - For the six months ended June 30, 2024, total revenue increased by 34% to $476 million, driven by a 738$342 million[149][150]. Subscription Revenue - Subscription revenue decreased by $32 million, or 18$173 million in Q2 2023 to $141 million in Q2 2024 due to the planned discontinuation of the BEAM platform[135]. - The company plans to discontinue the BEAM platform in 2025, which has impacted subscription revenue growth[150]. Cost of Revenue - Cost of revenue increased by$99 million, or 43%, from $230 million in Q2 2023 to$329 million in Q2 2024, with cost of revenue as a percentage of revenue rising to 145%[134][136]. - Cost of revenue for the same period rose to $646 million, but as a percentage of revenue, it decreased by 10$1.1 million, or 175%, to $1.7 million in Q2 2024, primarily due to increased professional fees and a commitment fee from the SEPA[138]. - General and administrative expenses surged by 164$3.1 million, largely due to increased professional fees associated with being a public company[153]. - Sales and marketing expenses decreased by $58 thousand, or 19$253 thousand in Q2 2024, attributed to lower salaries and benefits[139]. - Sales and marketing expenses decreased by 15% to $483 thousand, attributed to reduced salaries and benefits, despite increased spending on trade shows and subscriptions[154]. - Research and development expenses decreased by$0.2 million, or 34%, to $0.4 million in Q2 2024, mainly due to reduced stock compensation and professional fees[140]. - Research and development expenses fell by 29$828 thousand, mainly due to a decrease in stock compensation expenses[155]. Net Loss - Net loss for the three months ended June 30, 2024, was $3.6 million, a decrease of$6 million, or 63%, from a net loss of $9.6 million in Q2 2023[134]. - The net loss for the six months ended June 30, 2024, improved to$5.7 million from a loss of $17.4 million in the prior year, reflecting a reduction of 67$5,698 thousand, a significant improvement from a net loss of $17,444 thousand in the same period of 2023[173]. Cash Flow - Net cash used in operating activities was$3,053 thousand for the six months ended June 30, 2024, compared to $1,966 thousand for the same period in 2023[174][176]. - The net cash used in operating activities for the six months ended June 30, 2024, was primarily due to a net loss offset by non-cash items totaling$1,395 thousand[176]. - Net cash provided by financing activities increased to $3,720 thousand for the six months ended June 30, 2024, from$2,014 thousand in the same period of 2023[180][181]. Future Outlook - The company anticipates future capital requirements will depend on growth rate, R&D spending, and potential acquisitions[183]. - The company does not believe its cash and cash equivalents are sufficient to meet foreseeable cash needs for at least the next 12 months[182]. - The company plans to raise cash for operations through debt and equity offerings due to recurring losses from operations[182]. Business Combination - The Business Combination on November 7, 2023, involved a total consideration of approximately $200 million, resulting in the company being renamed OneMedNet Corporation[120]. Fair Value Changes - The change in fair value of the Yorkville Note resulted in an increase of$823 thousand during the six months ended June 30, 2024[159]. Adjusted EBITDA - Adjusted EBITDA for the three months ended June 30, 2024, was calculated to reflect ongoing business operations, excluding interest expense and other non-core items[167]. - Adjusted EBITDA for the six months ended June 30, 2024, was $(4,306) thousand, compared to$(2,433) thousand for the same period in 2023[173].