ienect (US:ICCT)2023-11-20 22:00Revenue Performance - Total revenue for the nine months ended September 30, 2023, decreased by 4% to $5.7 million compared to $5.9 million in the same period in 2022[163] - Revenue for the three months ended September 30, 2023, increased by 6% to $2.0 million from $1.9 million in the same period in 2022[168] - Net revenues for the nine months ended September 30, 2023 decreased to $5.7 million, a 4% decline compared to $5.9 million for the same period in 2022[176] - Subscription Software and Services revenues decreased slightly to $5.1 million from $5.3 million, attributed to changes in ePrescription mandates[177] - Subscription revenue related to SaaS and MSaaS offerings accounted for 92% of total revenue for the three months ended September 30, 2023[158] - Professional services and other revenue accounted for 8% of total revenue for the three months ended September 30, 2023[159] Profitability and Expenses - Gross profit percentage increased to 74% for the nine months ended September 30, 2023, compared to 70% in 2022, with gross profit increasing by $37,000[165] - Selling, general and administrative expenses for the three months ended September 30, 2023, increased by 67% to $3.6 million from $2.2 million in 2022[170] - Selling, general and administrative expenses increased by 30% to $9.2 million from $6.4 million, primarily due to higher payroll and merger-related costs[180] - Net loss attributable to common stockholders for the three months ended September 30, 2023, was $3.9 million, a 179% increase from $1.4 million in 2022[168] Cash Flow and Financing - Net cash used in operating activities was $1.8 million for the nine months ended September 30, 2023, slightly higher than $1.7 million in 2022[191] - Net cash used in investing activities surged to $10.0 million from $0.2 million, mainly due to a Forward Purchase Agreement costing $7.8 million[192] - Net cash provided by financing activities was $12.0 million, significantly higher than $2.0 million in the prior year, driven by debt transactions and preferred stock issuance[193] - The company raised $540,000 from the sale of common stock and $3.7 million in gross proceeds from secured notes and convertible notes in the first nine months of 2023[167] Financial Position and Concerns - The company has an accumulated deficit of $107.4 million and a net working capital deficit of $7.0 million, raising concerns about its ability to continue as a going concern[188] - Preferred dividends for the nine months ended September 30, 2023 were $0.2 million, compared to none in 2022, related to Series A Preferred Stock[186] - The company entered into a Purchase Agreement to sell up to $40 million of common stock over a 36-month period, subject to certain conditions[194] Future Outlook - The company expects the growth rate of its SaaS and MSaaS subscription offerings to outpace that of professional services over time[165] - Interest expense for the nine months ended September 30, 2023 rose to $1.0 million, a 79% increase from $0.6 million in 2022, due to additional bridge debt[182]