Marpai(US:MRAI)2024-08-07 21:25Financial Performance - Total revenue for Q2 2024 was $7.2 million, a decrease of 28.4% from $10 million in Q2 2023, primarily due to customer turnover [90]. - Operating loss for Q2 2024 increased to $12.3 million, compared to a loss of $7.3 million in Q2 2023, representing a 68.8% increase in losses [90]. - Net loss for Q2 2024 was $13.0 million, a 72.4% increase from a net loss of $7.6 million in Q2 2023 [90]. - Total costs and expenses for Q2 2024 were $19.5 million, an increase of 12.4% from $17.3 million in Q2 2023 [90]. - For the six months ended June 30, 2024, total revenue was $14.6 million, down 26.1% from $19.7 million in the same period of 2023 [91]. Expenses and Cost Management - Cost of revenue for Q2 2024 was $5.2 million, down 19.5% from $6.4 million in Q2 2023, aligning with the revenue decline [93]. - General and administrative expenses decreased to $3.7 million for Q2 2024 from $5.7 million in Q2 2023, a reduction of $2.0 million, primarily due to alignment actions and elimination of non-value added services [95]. - Sales and marketing expenses fell to $436 thousand for Q2 2024 from $1.5 million in Q2 2023, a decrease of $1.0 million, attributed to alignment actions [96]. - Information technology expenses decreased to $1.2 million for Q2 2024 from $1.3 million in Q2 2023, a reduction of $109 thousand, due to alignment actions [97]. - Research and development expenses dropped significantly by 98.5% to $8, compared to $523 in Q2 2023 [90]. - Research and development expenses dropped to $8 thousand for Q2 2024 from $523 thousand in Q2 2023, a decrease of $515 thousand, due to the elimination of non-value added projects [98]. Impairments and Financial Adjustments - The company reported an impairment of goodwill and intangible assets of $7.6 million in Q2 2024, which was not present in Q2 2023 [90]. - The company recorded a goodwill and intangible asset impairment charge of $7.6 million for Q2 2024 due to continued revenue shortfalls and negative operating cash flows [101]. Debt and Cash Flow - Interest expense increased to $872 thousand for Q2 2024 from $333 thousand in Q2 2023, an increase of $539 thousand, primarily due to new debt obligations [102]. - As of June 30, 2024, the company had an accumulated deficit of approximately $94.1 million and unrestricted cash of approximately $1.3 million [103]. - Net cash used in operating activities was $6.7 million for the six months ended June 30, 2024, a decrease of $2.0 million compared to $8.7 million for the same period in 2023 [108]. - Net cash provided by financing activities was $7.3 million for the six months ended June 30, 2024, an increase of $836 thousand compared to $6.4 million in the same period in 2023 [109]. Strategic Initiatives - The company is exploring strategic alternatives to maximize shareholder value, including potential mergers or sales [87]. - The company plans to transition its common shares from the Nasdaq to the OTCQX Market [85]. - The company is seeking additional funding alternatives to support operations and may need to scale back or divest assets if unable to raise capital [105].