Marpai(MRAI) - 2025 Q1 - Quarterly Results

Management Commentary and Business Outlook Management emphasizes significant operational expense reductions, viewing it as an inflection point, with a strategic focus on new initiatives and achieving profitability by year-end 2025 - The company reports consistent double-digit success in cutting operating expenses and improving its bottom line, which management believes is a critical inflection point[3] - Key initiatives for Q2 2025 include launching the Healthcare Management tool with Empara, making advancements with MarpaiRx, and onboarding a new Chief Operating Officer[3] - Marpai's stated goal is to achieve profitability and positive cash flow by the end of 2025[3][6] Q1 2025 Financial Highlights Despite a 27% year-over-year decrease in net revenues to $5.4 million, Q1 2025 saw significant operational improvements, reducing operating expenses by 33% and narrowing net loss by 29% to $3.1 million Q1 2025 vs Q1 2024 Financial Performance (in millions) | Metric | Q1 2025 | Q1 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | Net Revenues | $5.4 | ~$7.4 | -27% | | Operating Expenses | $7.7 | ~$11.5 | -33% | | Operating Loss | ($2.3) | ~($4.1) | -45% | | Net Loss | ($3.1) | ~($4.3) | -29% | | Basic & Diluted EPS | ($0.21) | ($0.46) | +$0.25 | - The company held $0.7 million in unrestricted cash on hand as of March 31, 2025[5] Condensed Consolidated Financial Statements The unaudited condensed consolidated financial statements for Q1 2025 provide a comprehensive overview of the company's financial position, operational performance, and cash flow movements Condensed Consolidated Balance Sheet As of March 31, 2025, total assets were $13.7 million and total liabilities were $43.9 million, resulting in a widened stockholders' deficit of $30.2 million compared to year-end 2024 Balance Sheet Summary (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $729 | $764 | | Total Assets | $13,718 | $12,878 | | Total Liabilities | $43,922 | $40,587 | | Total Stockholders' Deficit | ($30,204) | ($27,709) | Condensed Consolidated Statement of Operations Q1 2025 revenue decreased to $5.4 million, but a 33% reduction in total costs and expenses led to a narrowed operating loss of $2.3 million and a net loss of $3.1 million Statement of Operations Summary (in thousands) | Account | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Revenue | $5,418 | $7,385 | | Total costs and expenses | $7,668 | $11,450 | | Operating loss | ($2,250) | ($4,065) | | Net loss | ($3,069) | ($4,346) | | Net loss per share, basic & diluted | ($0.21) | ($0.46) | Condensed Consolidated Statement of Cash Flows Net cash used in operating activities significantly improved to $0.1 million in Q1 2025, supplemented by cash from investing activities and $1.9 million from financing, primarily convertible debentures Cash Flow Summary (in thousands) | Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($115) | ($3,585) | | Net cash provided by investing activities | $500 | $0 | | Net cash provided by financing activities | $1,892 | $3,705 | | Cash, cash equivalents and restricted cash at end of period | $11,509 | $13,612 | - Key financing activities in Q1 2025 included $3.0 million in proceeds from issuing convertible debentures. In contrast, Q1 2024 financing included $2.7 million from a private stock offering and $1.5 million from the sale of future cash receipts[14] About Marpai, Inc. and Other Information Marpai, Inc. is a technology platform providing TPA services to self-funded employer health plans in a $22 billion market, with the report including standard forward-looking statement disclaimers - Marpai is a technology platform company providing TPA services to self-funded employer health plans, competing in a $22 billion sector[4] - The company offers nationwide access to leading provider networks, including Aetna and Cigna[4] - The press release includes a forward-looking statement disclaimer, cautioning that actual results may differ materially from current expectations due to various factors[6][7]