Ontrak(US:OTRK)2023-05-12 20:32Revenue Performance - Revenue for the three months ended March 31, 2023, was $2.5 million, a decrease of 52% compared to $5.3 million for the same period in 2022[151] - Total revenue decreased by $2.7 million, or 52%, to $2.5 million for the three months ended March 31, 2023, compared to $5.3 million in the same period of 2022[162] - Commercial revenue dropped by $1.6 million, or 64%, to $0.9 million, while government revenue decreased by $1.2 million, or 41%, to $1.6 million[162] Operating Performance - Operating loss for the three months ended March 31, 2023, was $(7.2) million, an improvement from $(13.1) million for the same period in 2022[161] - Operating loss improved by $5.9 million, or 45%, to $7.2 million for the three months ended March 31, 2023[168] - Gross profit decreased by $0.7 million to $1.7 million, with a gross profit margin increase of 21% to 67% for the three months ended March 31, 2023[166] Cash Flow and Liquidity - Cash flow from operations improved to $(5.0) million for the three months ended March 31, 2023, compared to $(10.5) million for the same period in 2022, reflecting a 53% year-over-year improvement[152] - Net cash used in operating activities was $5.0 million for the three months ended March 31, 2023, compared to $10.5 million in the same period of 2022[180] - Cash and restricted cash totaled $12.1 million as of March 31, 2023, with a working capital of approximately $7.2 million[174] - The company plans to explore other sources of capital and continue cost optimization initiatives to improve liquidity and operational efficiency[178] - As of March 31, 2023, $6.0 million remained to be borrowed under the Keep Well Agreement, which is a primary source of working capital[176] Cost Management - Total operating expenses decreased to $8.9 million for the three months ended March 31, 2023, down from $15.6 million in the same period in 2022[161] - Total operating expenses fell by $6.6 million, or 43%, to $8.9 million, primarily due to reductions in research and development, sales and marketing, and general and administrative costs[168] - Approximately 19% of employee positions were eliminated in March 2023, expected to result in annual compensation cost savings of approximately $2.7 million[142] Future Outlook - The company expects to continue incurring net losses and negative operating cash flows due to customer terminations and operational challenges[174] - The company’s programs aim to improve member health and deliver validated cost savings to healthcare payors by integrating evidence-based interventions and telehealth services[137] Shareholder Actions - The company issued 2,038,133 shares of common stock to Acuitas as part of the Keep Well Agreement on February 22, 2023[146] - The company borrowed $4 million under the Keep Well Agreement on both January 5, 2023, and March 6, 2023, issuing warrants for shares of common stock in connection with these borrowings[148] Outreach and Engagement - The effective outreach pool increased by 124% to 8,865 at March 31, 2023, compared to 3,950 at March 31, 2022, due to enhanced predictive algorithms and program expansions[151]