Financial Performance - Net revenue for Q2 2023 was $8,526,000, a decrease of 26.6% compared to $11,588,000 in Q2 2022[22] - For the six months ended June 30, 2023, revenue was $18,364,000, down 19% from $22,644,000 in the same period of 2022[48] - Revenue for the quarter ended June 30, 2023, decreased by $3 million, or 26%, to $8.5 million compared to $11.5 million for the same quarter in 2022[186] - The operating loss for the three months ended June 30, 2023, was $(1,595,000), an increase in loss of 11% from $(1,433,000) in the same period of 2022[49] - The total segment operating profit decreased by $0.49 million, or 65%, to $0.26 million for the quarter ended June 30, 2023, compared to $0.75 million for the same quarter in 2022[201] Assets and Equity - Total assets decreased to $16,068,000 as of June 30, 2023, down from $20,763,000 as of December 31, 2022, representing a decline of 22.5%[20] - Total stockholders' equity decreased to $8,051,000 as of June 30, 2023, down from $12,388,000 at the end of 2022, a decline of 34.8%[20] - As of June 30, 2023, the company reported total intangible assets of $16,473,000, with net carrying amounts of $8,921,000 after accumulated amortization[98] Cash Flow and Expenses - Cash and cash equivalents dropped to $132,000 at the end of Q2 2023, down from $1,341,000 at the end of 2022, a decrease of 90.2%[20] - The company experienced a net cash used in operating activities of $(2,826,000) for the six months ended June 30, 2023, compared to $602,000 provided in the same period of 2022[28] - Cash inflow from financing activities was $1.6 million for the six months ended June 30, 2023, compared to $1 million for the same period in 2022[212] Customer Concentration - The top customer contributed $4,519,000, accounting for 53% of total revenue for the three months ended June 30, 2023, compared to 39% in the same period of 2022[50][51] - For the quarter ended June 30, 2023, revenue from the top five customers accounted for approximately 81% of total revenue, compared to 73% for the same quarter in 2022[94] Research and Development - Research and development expenses were $102,000 in Q2 2023, significantly lower than $646,000 in Q2 2022, reflecting a decrease of 84.2%[22] - The company’s research and development expenses primarily consist of employee-related costs for software developers and engineers, aimed at enhancing cloud-based platform applications[174] Debt and Liabilities - The company has a credit facility from Seacoast business funding with a balance of $2,352 thousand as of June 30, 2023, compared to $3,212 thousand at December 31, 2022[120] - The debt-to-equity ratio increased to 0.45 for the quarter ended June 30, 2023, compared to 0.20 for the quarter ended December 31, 2022[203] Stock and Equity Compensation - The company has reserved 600,000 shares under the "2020 Stock Incentive Plan" for stock-based compensation[91] - As of June 30, 2023, the company had 84,356 unvested options with a weighted average grant date fair value of $3.7 per option, and $309 thousand of unrecognized share-based compensation expense related to these options[141][142] Legal and Regulatory - The company has not been involved in any legal proceedings that could materially affect its financial condition[132] - The company is currently evaluating the impact of new accounting pronouncements on its consolidated financial statements[129] Business Strategy and Market Position - The company continues to focus on digital transformation and cloud solutions for the healthcare sector, leveraging technologies such as AI and Big Data[30] - Healthcare Triangle, Inc. is in the early stages of marketing its SaaS offerings, including DataEz, CloudEz, and Readabl.AI, with uncertain impacts on future revenue growth[164] - The company anticipates increasing its employee strength due to investments in sales and marketing to promote solutions in various geographies[162]
Healthcare Triangle(HCTI) - 2023 Q2 - Quarterly Report