Financial Performance - Total revenues for Q1 2025 were $3,321,485, a significant increase of 104.3% compared to $1,620,995 in Q1 2024[17] - Subscription fees decreased to $827,345 in Q1 2025 from $1,005,202 in Q1 2024, representing a decline of 17.7%[17] - Professional services and other fees increased to $896,680 in Q1 2025 from $327,843 in Q1 2024, marking a growth of 173.5%[17] - Net loss for Q1 2025 was $3,959,440, compared to a net income of $94,750 in Q1 2024[17] - The company reported a gross margin of $1,859,971 for Q1 2025, compared to $1,234,742 in Q1 2024, indicating a growth of 50.6%[17] - Operating expenses for Q1 2025 were $3,691,289, significantly higher than $1,130,682 in Q1 2024, an increase of 226.5%[17] Cash and Liabilities - Cash at the end of Q1 2025 was $410,122, up from $326,115 at the end of Q4 2024, reflecting a 25.7% increase[20] - Total current liabilities increased to $21,982,860 as of March 31, 2025, compared to $19,010,320 as of December 31, 2024, an increase of 15.5%[15] - The Company reported total liabilities of $5,635,549 as of March 31, 2024, after adjustments, reflecting an increase of $821,292[30] Business Combinations and Financing - The company completed a business combination with VSee Lab, Inc. and iDoc Virtual Telehealth Solutions, Inc. on June 24, 2024, which was accounted for as a reverse recapitalization[23] - The company has entered into an equity line of credit agreement for up to $50 million over a 36-month period following the business combination[23] - The Company is negotiating additional financing to support working capital needs and growth initiatives[28] - The Company has an equity line of credit purchase agreement allowing for the issuance of up to $50,000,000 in common stock[28] Revenue Recognition and Accounting - The Company recognizes revenue in accordance with ASC 606, reflecting the expected consideration received for services provided[42] - Revenue from telemedicine care services is recognized when administrative, business, and medical records are provided as required[64] - Revenue is presented net of estimated contractual adjustments, service credits, and expected credit losses, reflecting historical collection experience and market conditions[58] Intangible Assets and Impairment - As of March 31, 2025, the net intangible assets amounted to $10,442,500, after accounting for accumulated amortization of $1,657,500 for the three months ended March 31, 2025[90] - The Company recorded non-cash goodwill impairment charges of $56,675,210 for the year ended December 31, 2024, due to the fair value of the Telehealth Services reporting unit being less than its carrying value[88] - The Company performed a qualitative analysis for impairment indicators as of March 31, 2025, concluding that no adverse indicators were identified[88] Lease Liabilities - The Company has operating lease liabilities of $325,396 as of March 31, 2025, with future minimum rent payments totaling $436,350[103] - For the three months ended March 31, 2025, the Company recorded operating lease expenses of $35,635[105] - The finance lease liabilities amounted to $282,877 as of March 31, 2025, with total future minimum lease payments of $319,302[108] Shareholder Equity and Stock Issuance - The Company issued 5,542,500 shares of common stock and 300 shares of Series A preferred stock as part of the business combination, totaling 5,692,500 shares on an as-converted basis[99] - The Company has 10,000,000 shares of preferred stock authorized, with 6,158 shares of Series A Preferred Stock issued and outstanding as of March 31, 2025[209] - Series A preferred stockholders are entitled to cumulative participating dividends when declared, prior to any dividends to common stockholders[211] Taxation - For the three months ended March 31, 2025, the Company reported an income tax expense of $13,505, compared to $0 for the same period in 2024[206] - The effective tax rate for the three months ended March 31, 2025, was (0.35%), compared to 0.00% for the same period in 2024[206] - The Company does not have any uncertain income tax positions as of March 31, 2025, and December 31, 2024[208] Customer and Vendor Relationships - The Company has two major customers whose accounts receivable represented 58% of total accounts receivable as of March 31, 2025[202] - One customer accounted for approximately 26% of the Company's total revenue for the three months ended March 31, 2025, compared to 12% for the same period in 2024[203] - One vendor represented 21% of the Company's total accounts payable and accrued liabilities as of March 31, 2025, down from 22% as of December 31, 2024[204]
VSee Health, Inc.(VSEE) - 2025 Q1 - Quarterly Report