OneMedNet (ONMD) - 2025 Q3 - Quarterly Report

Revenue Performance - Total revenue for the three months ended September 30, 2025, was $177 million, a 25% increase compared to $142 million in the same period of 2024[142] - Total revenue for the nine months ended September 30, 2025, decreased by 24% to $468 million from $617 million in 2024[159] - Subscription revenue from the BEAM platform decreased by 100% to $0 due to its decommissioning on May 31, 2025, compared to $102 million in the prior year[143] - Subscription revenue dropped by 76% to $105 million, primarily due to the planned decommissioning of the BEAM platform[160] - Web imaging revenue increased by 343% to $177 million from $40 million, driven by enhanced focus on iRWD sales[143] - Web imaging revenue increased by 109% to $363 million, driven by enhanced focus on iRWD sales[160] Expenses and Costs - Cost of revenue increased by 77% to $399 million, with a cost of revenue as a percentage of revenue rising to 225% from 159%[144] - Cost of revenue increased by 30% to $1,136 million, resulting in a gross margin loss of $668 million[159] - General and administrative expenses decreased by 24% to $1.4 million from $1.8 million, primarily due to reduced professional fees[145] - General and administrative expenses decreased by 18% to $4.0 million, mainly due to reduced professional fees[163] - Sales and marketing expenses increased by 117% to $0.3 million from $0.1 million, driven by increased personnel costs[146] - Sales and marketing expenses rose by 36% to $0.8 million, attributed to increased personnel costs[164] Financial Position and Cash Flow - Net loss for the three months ended September 30, 2025, was $741 million, a 647% improvement from a loss of $2,058 million in the prior year[142] - Net cash used in operating activities was $5.8 million, primarily from non-cash charges of $6.3 million[179] - Net cash provided by investing activities was $2.4 million, mainly from Bitcoin sales of $4.8 million[181] - Net cash provided by financing activities was $3.4 million, consisting of $2.5 million from private placements and $1.7 million from related party investments[183] Liquidity and Capital Requirements - Management does not believe that cash and cash equivalents are sufficient to meet foreseeable cash needs for at least the next 12 months[185] - Total material cash requirements as of September 30, 2025, amount to $4,235 million, with $3,847 million due in accounts payable and accrued expenses[188] - Future capital requirements will depend on growth rate, R&D spending, sales and marketing expansion, and potential acquisitions[187] - There is uncertainty regarding the company's ability to maintain liquidity due to recurring losses and the need for additional financing[185] Accounting and Reporting - Management's estimates and assumptions in financial reporting may lead to actual results differing from reported figures[189] - No material changes to critical accounting policies and estimates have occurred through September 30, 2025, from those discussed in the Form 10-K[190] - Recently issued accounting pronouncements that may impact financial position are disclosed in the condensed consolidated financial statements[191] - The company is classified as a smaller reporting company and is not required to provide certain market risk disclosures[192] Other Financial Metrics - Interest expense decreased by 83% to $6 thousand from $36 thousand, attributed to lower interest on loans converted to shares[148] - Interest expense decreased by 51% to $59 thousand, due to lower interest on loans converted to shares[166] - Gain on troubled debt restructuring amounted to $1.9 million due to settlement agreements with vendors for reduced fees[157] - Change in fair value of derivative liability was $402 million, driven by expected draws on the SEPA facility during the commitment period[154]