Financial Performance - Total revenue for the three months ended March 31, 2024, was $248 million, representing a 24% increase from $200 million in the same period of 2023[106]. - Subscription revenue (BEAM) increased by 20% to $201 million, while web imaging revenue (iRWD) rose by 42% to $47 million[107]. - The net loss for the three months ended March 31, 2024, was $2.1 million, a decrease of 73% from a net loss of $7.8 million in the same period of 2023[106]. - Adjusted EBITDA for Q1 2024 was $(1.946) million, compared to $(1.103) million in Q1 2023, indicating a worsening operational performance year-over-year[120]. - The net loss for Q1 2024 was $2.109 million, a significant improvement from a net loss of $7.826 million in Q1 2023[120]. Expenses - Cost of revenue for the three months ended March 31, 2024, was $317 million, which is 128% of revenue, down from 145% in the same period of 2023[108]. - General and administrative expenses surged by 152% to $1.4 million, primarily due to increased professional fees and employee-related costs[109]. - Sales and marketing expenses decreased by 12% to $229 thousand, attributed to reduced salaries and benefits[110]. - Research and development expenses fell by 24% to $445 thousand, mainly due to a decrease in stock compensation expenses[111]. - Interest expense for the three months ended March 31, 2024, was $42 thousand, compared to no interest expense in the same period of 2023[112]. Cash Flow and Liquidity - Net cash used in operating activities was $1.547 million in Q1 2024, compared to $1.0 million in Q1 2023, reflecting increased operational cash outflows[124][125]. - Net cash provided by financing activities increased to $1.680 million in Q1 2024 from $0.876 million in Q1 2023, primarily due to related party loans and a revolving line of credit[127][128]. - The company reported $5.874 million in accounts payable and accrued expenses due within the next year as of March 31, 2024[131]. - Management anticipates raising cash for operations through debt and equity offerings due to insufficient liquidity to meet foreseeable cash needs for at least the next 12 months[129]. - The company incurred $6,000 in cash used for investing activities in Q1 2024, primarily for property and equipment purchases, compared to no cash used in Q1 2023[126]. Business Developments - The Business Combination on November 7, 2023, had a total consideration of approximately $200 million, resulting in the company being renamed to OneMedNet Corporation[93][94]. - The company plans to continue focusing on digital medical image management and expanding its market presence through new product offerings and strategic initiatives[92]. Future Outlook - The change in fair value of convertible promissory notes contributed $4.414 million to non-cash adjustments in Q1 2023, highlighting significant financial instrument volatility[125]. - The company expects ongoing operating losses and has raised substantial doubt regarding its ability to continue as a going concern[129]. - Future capital requirements will depend on growth rate, R&D spending, and potential acquisitions, with uncertainty about raising additional funds on acceptable terms[130].
DATA KNIGHTS ACQUISITION(DKDCA) - 2024 Q1 - Quarterly Report