Streamline Health(US:STRM)2021-12-14 16:00Revenue Growth - Total revenues for the three months ended October 31, 2021, increased by 109% to $5,514,000 compared to $2,641,000 for the same period in 2020[137]. - Software as a Service (SaaS) revenue for the three months ended October 31, 2021, increased by 214% to $2,825,000 from $900,000 in the prior year[137]. - Professional services revenue for the three months ended October 31, 2021, increased by 486% to $944,000 compared to $161,000 in the same period last year[137]. - The company recorded $814,000 in professional services revenue from Avelead since its acquisition, contributing to the overall increase in professional services revenue[139]. Expenses - Selling, general, and administrative expenses for the three months ended October 31, 2021, increased by 51% to $3,439,000 from $2,283,000 in the prior year[147]. - Cost of sales for the three months ended October 31, 2021, increased by 77% to $2,623,000 compared to $1,479,000 in the same period last year[142]. - Research and development expenses for the three months ended October 31, 2021 were $1,339,000, a 78% increase from $753,000 in the prior year[149]. - Total research and development costs for the nine months ended October 31, 2021 were $4,328,000, a 24% increase from $3,491,000 in the prior year[150]. - Sales and marketing expenses increased by approximately $267,000 for the three and nine months ended October 31, 2021, primarily due to the Avelead acquisition and expansion of sales personnel[148]. - Non-routine costs for the three months ended October 31, 2021 were $1,933,000, representing a 100% increase compared to the prior year[151]. Financial Performance - For the three months ended October 31, 2021, the company reported a loss from continuing operations of $4,379,000 compared to a loss of $1,069,000 for the same period in 2020[166]. - The company reported a net loss from continuing operations of $(6,913,000) for the nine months ended October 31, 2021, compared to $(3,209,000) for the same period in 2020[178]. - Adjusted EBITDA for the nine months ended October 31, 2021 was $(1,737,000), an improvement from $(1,741,000) in the same period of 2020, with an adjusted EBITDA margin of (15%) compared to (21%) in 2020[166]. - The company had a diluted loss per share of $(0.10) for the three months ended October 31, 2021, compared to $(0.04) for the same period in 2020[166]. Cash Flow and Financing - The company had cash and cash equivalents of approximately $10,409,000 as of October 31, 2021, up from $2,409,000 at January 31, 2021[171]. - The company raised approximately $16.1 million from a public offering of 10,062,500 shares of common stock at $1.60 per share, which closed on March 2, 2021[171]. - The company invested $12,354,000 in Avelead during the nine months ended October 31, 2021, with net cash used in investing activities totaling $(12,620,000)[179]. - Net cash used in operating activities for the nine months ended October 31, 2021 was $(4,022,000), compared to $(3,683,000) for the same period in 2020[178]. - The company received a new term loan facility with a maximum principal amount of $10,000,000, which bears interest at a rate equal to the Prime Rate plus 1.5%[172]. - The company recorded a forgiveness of a PPP loan and accrued interest amounting to $2,327,000 for the nine months ended October 31, 2021[155]. Strategic Acquisitions - The acquisition of Avelead on August 16, 2021, is expected to enhance the company's revenue integrity solutions for healthcare providers[135]. - The company experienced a shift from perpetual software licenses to Software as a Service (SaaS) offerings, impacting revenue recognition[138]. - The company expects total research and development expenses to continue increasing due to ongoing projects related to Avelead and eValuator[150]. Other Financial Metrics - Total other income (expense) for the three months ended October 31, 2021 was $(555,000), a significant decrease from $2,000 in the prior year, reflecting a 27,850% change[154]. - Interest expense for the nine months ended October 31, 2021 was $(107,000), a 174% increase from $(39,000) in the prior year[154]. - The company has a substantial amount of net operating losses for federal and state income tax purposes, with an income tax expense of $9,000 for the nine months ended October 31, 2021[156]. - The company recorded a loss on exit from a membership agreement of $105,000 in the nine months ended October 31, 2020, which was not present in the current year[152]. - The company anticipates lower SaaS revenues in the fourth quarter due to slower contracting processes attributed to COVID-19[141]. - The company was in compliance with the covenants of the Second Amended Loan and Security Agreement for the period ended October 31, 2021[173].