Healthcare Triangle(US:HCTI)2022-08-08 12:00Financial Performance - Net revenue for the three months ended June 30, 2022, was $11,588,000, representing a 15.3% increase from $10,050,000 in the same period of 2021[21] - The company reported a net loss of $405,000 for the three months ended June 30, 2022, compared to a net income of $304,000 in the same period of 2021[21] - Total revenue for the six months ended June 30, 2022, was $22,644, representing a 26% increase from $18,003 in 2021[64] - Revenue for the quarter ended June 30, 2022, increased by $1.5 million, or 15%, to $11.6 million compared to $10.1 million for the same quarter in 2021[193] - Revenue from Software Services increased by $3.4 million, or 105%, to $6.6 million for the quarter ended June 30, 2022, compared to $3.2 million for the same quarter in 2021[205] - Revenue from Managed Services and Support decreased by $1.4 million, or 26%, to $3.9 million for the quarter ended June 30, 2022, compared to $5.3 million for the same quarter in 2021[205] - Revenue from Customer 1 decreased by $0.2 million, or 2%, to $8.3 million for the six months ended June 30, 2022, compared to $8.5 million for the same period in 2021[214] Expenses and Liabilities - Operating expenses for the six months ended June 30, 2022, totaled $9,460,000, an increase of 64.5% compared to $5,774,000 for the same period in 2021[21] - Cost of Revenue (exclusive of depreciation/amortization) increased by $1.7 million, or 26%, to $8.4 million for the quarter ended June 30, 2022, compared to $6.7 million for the same quarter in 2021[208] - General and Administrative expenses increased by $0.4 million, or 38%, to $1.4 million for the quarter ended June 30, 2022, compared to $1 million for the same quarter in 2021[200] - Research and Development expenses decreased by $0.2 million, or 21%, to $0.6 million for the quarter ended June 30, 2022, compared to $0.8 million for the same quarter in 2021[198] - Sales and Marketing expenses increased by $0.8 million, or 105%, to $1.6 million for the quarter ended June 30, 2022, compared to $0.8 million for the same quarter in 2021[199] - The company’s total liabilities decreased slightly to $8,283,000 as of June 30, 2022, from $8,478,000 as of December 31, 2021[19] Assets and Equity - Total current assets decreased to $8,578,000 as of June 30, 2022, down from $11,804,000 as of December 31, 2021, reflecting a decline of 27.5%[19] - Total stockholders' equity decreased to $14,106,000 as of June 30, 2022, down from $16,135,000 as of December 31, 2021, a decline of 12.6%[19] - The accounts receivable balance as of June 30, 2022, was $6,547, down from $9,672 at the end of 2021[71] - The net intangible assets increased to $11,005,000 as of June 30, 2022, from $10,458,000 in 2021, marking an increase of approximately 5.2%[99] Shareholder Information - The weighted average shares outstanding for basic net income per common share was 35,484,290 for the three months ended June 30, 2022, compared to 29,579,405 for the same period in 2021[21] - Basic earnings per share (EPS) for the three months ended June 30, 2022, was $(0.011), consistent with the diluted EPS of $(0.011), while the basic EPS for the same period in 2021 was $0.011[153] - The Company issued 807,500 Incentive Stock Options (ISO) at an exercise price of $0.40, vesting over four years, with the first 25% vesting on the one-year anniversary of the grant[142] - As of June 30, 2022, the balance of outstanding stock options was 1,866,219, with 2,133,781 shares available under the equity compensation plan[147] Acquisitions and Investments - The company acquired Devcool Inc. for a purchase price of $7.7 million on December 10, 2021, enhancing its capabilities in solving complex technology problems in the healthcare industry[29] - The acquisition of Devcool, Inc. was completed for a total purchase price of $7,773, with $1,289 recorded as goodwill[114] Market and Operational Insights - The company operates in three distinct reportable segments: Software Services, Managed Services and Support, and Platform Services, focusing on optimizing healthcare IT infrastructures[41][42] - The impact of COVID-19 has not materially affected the company's financial condition, but it has accelerated the adoption of digital solutions in the healthcare sector[33] - The Company aims to enhance its solutions and services to support healthcare delivery organizations and improve operational efficiencies[158] Future Outlook - Research and development expenses are expected to increase in absolute dollars as the Company focuses on developing new product offerings[180] - Sales and marketing expenses are anticipated to continue increasing in absolute dollar terms to support business expansion[182] - General and administrative expenses are expected to rise to support business growth, although they may decrease as a percentage of revenue over the long term[184]