Revenue and Growth - Total revenues for the three months ended September 30, 2025, were $3,980,655, an increase of 18.6% compared to $3,354,437 for the same period in 2024[20] - Subscription fees decreased to $894,514 for the three months ended September 30, 2025, down 13.8% from $1,037,457 in 2024[20] - Gross margin for the nine months ended September 30, 2025, was $5,521,759, up from $4,796,441 in 2024, reflecting a growth of 15.1%[20] - The Company won new contracts with larger hospitals and entered new markets, indicating positive revenue growth potential[32] Financial Performance - Net loss for the nine months ended September 30, 2025, was $6,862,468, compared to a net loss of $54,493,913 for the same period in 2024[20] - The Company reported a net loss of $289,745 for the three months ended September 30, 2025, compared to a net loss of $53,922,561 for the same period in 2024, indicating a significant improvement[82] - Cash used in operating activities for the nine months ended September 30, 2025, was $1,519,632, an improvement from $2,815,248 in 2024[23] Assets and Liabilities - Total current assets increased to $3,718,385 as of September 30, 2025, from $3,020,967 as of December 31, 2024, representing a growth of 23.1%[17] - Total liabilities rose to $24,282,620 as of September 30, 2025, compared to $20,010,976 as of December 31, 2024, indicating an increase of 21.7%[18] - Total stockholders' deficit improved to $(5,575,498) as of September 30, 2025, compared to $(18,488) as of December 31, 2024[18] Impairment and Adjustments - The company reported a goodwill impairment charge of $56,675,210 for the three months ended June 30, 2024, which was not repeated in 2025[20] - The company experienced a goodwill impairment charge of $56,675,210 in 2024, which was not present in 2025[23] - The Company identified errors in previously issued financial statements, leading to a restatement of the interim condensed consolidated financial statements as of September 30, 2024[33] Cash Flow and Financing - VSee Health's net cash provided by financing activities was $1,689,052 for the nine months ended September 30, 2025, compared to $5,045,235 in 2024[23] - The Company recorded a loss on issuance of financial instruments of $443,020 in 2025, compared to $2,213,234 in 2024[23] - The Company has an outstanding balance of $456,097 on the revolving line of credit as of September 30, 2025, with interest recorded as $15,886 for the three months ended September 30, 2025[168] Contracts and Revenue Recognition - Subscription revenue is recognized over time as customers receive services, with each module treated as a distinct performance obligation[61] - The Company has service contracts with hospitals typically ranging from two to three years, with an automatic renewal process, indicating stable revenue streams[56] - Revenue from telemedicine services is recognized when the Company satisfies its performance obligations, which are based on the number of services provided[70] Acquisitions and Business Combinations - On June 24, 2024, the Company completed a business combination with VSee Lab and iDoc, resulting in a name change to VSee Health, Inc. and an equity line of credit agreement for up to $50 million over 36 months[27] - The acquisition of iDoc was treated as a business combination, with excess purchase consideration recorded as goodwill[28] - The Company has developed technology valued at $10 million and customer relationships valued at $2.1 million as part of the iDoc acquisition[112] Going Concern and Liquidity - The Company reported significant doubts about its ability to continue as a going concern due to persistent operating losses and a deteriorating liquidity position[29] - Management has taken measures to address liquidity concerns, but there is no assurance that these plans will be successful within one year[30] Lease and Operating Expenses - Operating expenses for the three months ended September 30, 2025, were $4,130,817, significantly lower than $61,079,702 in the same period of 2024 due to reduced impairment charges[20] - The Company recorded operating lease expense of $35,635, compared to $13,476 for the same period in 2024, reflecting increased lease costs[116] - The weighted average remaining lease term for operating leases was 2.8 years as of September 30, 2025, down from 3.6 years as of December 31, 2024[119]
VSee Health, Inc.(VSEE) - 2025 Q3 - Quarterly Report