Revenue Performance - Total revenue for the three months ended September 30, 2024, was $142 million, a decrease of 56% compared to $326 million in the same period of 2023[143]. - Subscription revenue decreased by 60% to $102 million from $256 million year-over-year, primarily due to the planned discontinuation of the BEAM platform in 2025[145]. - Web imaging revenue declined by 43% to $40 million from $70 million year-over-year, attributed to lower deliveries during the period[145]. - Total revenue for the nine months ended September 30, 2024, decreased by 9% to $617 million from $681 million in the same period of 2023[161]. - Subscription revenue decreased by 26% to $443 million, primarily due to the planned discontinuation of the BEAM platform in 2025[162]. - Web imaging revenue increased by 102% to $174 million, driven by enhanced focus on iRWD sales[162]. Expenses and Costs - Cost of revenue increased to $226 million, representing 159% of total revenue, compared to $293 million or 90% of revenue in the prior year[146][147]. - General and administrative expenses rose by 42% to $1.9 million from $1.3 million, driven by increased professional fees and salaries[148]. - Sales and marketing expenses decreased by 42% to $0.1 million from $0.2 million, mainly due to reduced consulting expenses[149]. - Research and development expenses decreased by 26% to $0.3 million from $0.4 million, primarily due to lower professional fees and hosting expenses[150]. - The cost of revenue increased by 22% to $872 million, primarily due to increased iRWD data and consulting costs[164]. - General and administrative expenses rose by 99% to $4.9 million, largely due to increased professional fees associated with being a public company[165]. Net Loss and Financial Performance - The net loss for the three months ended September 30, 2024, was $2.1 million, a significant improvement from a net loss of $13.8 million in the same period of 2023[143]. - Net loss for the nine months ended September 30, 2024, was $7.8 million, a significant reduction from a net loss of $31.3 million in the same period of 2023, representing a 75% improvement[161]. Cash Flow and Liquidity - Net cash used in operating activities was $5.0 million for the nine months ended September 30, 2024, compared to $3.1 million in the same period of 2023[179]. - Net cash provided by financing activities increased to $9.2 million for the nine months ended September 30, 2024, up from $3.4 million in the same period of 2023[183]. - As of September 30, 2024, total material cash requirements amount to $18,200 million, with accounts payable and accrued expenses at $6,161 million[187]. - Management expressed uncertainty regarding the company's ability to maintain liquidity sufficient to operate effectively, raising substantial doubt about its ability to continue as a going concern[185]. Business Developments - The Business Combination on November 7, 2023, resulted in a total consideration of approximately $200 million, leading to the company's name change to OneMedNet Corporation[128][129]. Accounting and Reporting - The company utilizes estimates, assumptions, and judgments in financial reporting, which may lead to actual results differing from reported figures[188]. - There have been no material changes to critical accounting policies and estimates through September 30, 2024, compared to those discussed in the Form 10-K/A[190]. - Recently issued accounting pronouncements that may impact financial position are disclosed in the condensed consolidated financial statements[191]. - The company qualifies as a smaller reporting company and is not required to provide certain market risk disclosures[192]. Future Outlook - Future capital requirements will depend on growth rate, R&D spending, sales and marketing expansion, new product introductions, and potential acquisitions[186].
OneMedNet (ONMD) - 2024 Q3 - Quarterly Report