Revenue Performance - Revenue for Q1 2025 was $2.0 million, a decrease of 25% from $2.7 million in Q1 2024, primarily due to a decrease in total average enrolled members[157]. - Total revenue decreased by $0.7 million, or 25%, to $2.017 million for the three months ended March 31, 2025, compared to $2.680 million in the same period of 2024[169]. Operating Expenses and Losses - Total operating expenses for Q1 2025 were $6.6 million, up from $6.0 million in Q1 2024, with increases in research and development and general administrative expenses[168]. - Total operating expenses increased by $0.6 million, or 10%, to $6.596 million for the three months ended March 31, 2025, compared to $5.978 million in 2024[172]. - Operating loss for Q1 2025 was $(5.9) million, compared to $(4.3) million in Q1 2024, indicating a worsening financial performance[168]. - Operating loss increased by $1.577 million, or 37%, to $5.850 million for the three months ended March 31, 2025[172]. Net Loss and Financial Challenges - Net loss for Q1 2025 was $(6.9) million, compared to $(4.5) million in Q1 2024, reflecting increased operational challenges[168]. - Interest expense, net increased by $858,000, or 469%, to $(183,000) for the three months ended March 31, 2025, compared to $(1.041 million) in 2024[174]. - The company is not in compliance with the consolidated liquidity or consolidated recurring revenue covenants as of March 31, 2025[178]. Cash Flow and Liquidity - Cash flow from operations improved to $(2.7) million in Q1 2025 from $(3.3) million in Q1 2024, attributed to increased collections on accounts receivable and efficient cash flow management[158]. - Net cash used in operating activities was $2.723 million for the three months ended March 31, 2025, an improvement from $3.259 million in 2024[181]. - Total cash as of March 31, 2025, was $4.1 million, with negative working capital of approximately $3.1 million[175]. Member Enrollment and Programs - Callable outreach pool for WholeHealth+ increased by 45% to 7,319 members as of March 31, 2025, compared to 5,057 members in the same period last year[159]. - Callable outreach pool for Ontrak Engage program reached 22,152 members as of March 31, 2025, reflecting the program's launch on an à la carte basis in early 2024[160]. - A health plan customer notified the company of its intent to discontinue services after December 2024, leading to disenrollment of related members[152]. - The company aims to increase eligible members by signing new contracts and identifying more eligible members within existing contracts[161]. Debt and Financing - The company entered into an agreement with Acuitas to purchase up to $5.0 million in principal amount of Demand Notes and senior secured non-convertible promissory notes[153]. - The company had $13.5 million of secured debt outstanding as of March 31, 2025, with additional borrowing of $0.5 million under the Keep Well Agreement on May 9, 2025[176]. Cost of Revenue and Gross Profit - Cost of revenue increased by $0.3 million, or 30%, to $1.271 million for the three months ended March 31, 2025, compared to $0.975 million in 2024[170]. - Gross profit decreased by $1.0 million to $746,000, with a gross profit margin decline of 27% to 37% for the three months ended March 31, 2025[171].
ONTRAK(OTRKP) - 2025 Q1 - Quarterly Report