Financial Performance - Net revenue for Q1 2024 was $4,109,000, a decrease of 58% compared to $9,838,000 in Q1 2023[21] - Net loss for Q1 2024 was $1,862,000, compared to a net loss of $3,278,000 in Q1 2023, representing a 43.2% improvement[21] - Revenue for the quarter ended March 31, 2024, was approximately $4.1 million, a decrease of $5.7 million or 58% compared to $9.8 million for the quarter ended March 31, 2023[159] - Basic and diluted EPS for the quarter ended March 31, 2024, were $(0.42) and $(0.42) respectively, compared to $(0.79) for the same period in 2023[154] - The total segment operating loss improved by 89% to $(115,000) from $(1,046,000) in the prior year[52] Revenue Breakdown - Software services revenue decreased by 33% to $2,025,000, managed services and support revenue decreased by 69% to $1,996,000, and platform services revenue decreased by 74% to $88,000[51] - Revenue from Software Services decreased by $3.6 million, or 82%, to $0.79 million for the quarter ended March 31, 2024, compared to $4.4 million for the same period in 2023[196] - Revenue from the top five customers accounted for approximately 70% of total revenue for the quarter ended March 31, 2024, down from 80% in the same quarter of 2023[90] - Revenue concentration from the top five customers for the three months ended March 31, 2024, shows Customer 1 contributing 20% and Customer 2 contributing 18%[53] Expenses and Cost Management - Operating expenses decreased by 43.3% from $4,802,000 in Q1 2023 to $2,722,000 in Q1 2024[21] - Research and development expenses were $127,000 in Q1 2024, down from $539,000 in Q1 2023, a reduction of 76.5%[21] - Marketing and advertising expenses for the quarters ended March 31, 2024, and March 31, 2023, were $268,000 and $214,000 respectively[89] - General and administrative expenses decreased by $0.4 million, or 28%, to $1.2 million for the quarter ended March 31, 2024, compared to $1.6 million for the same period in 2023[200] - Sales and marketing expenses decreased by $0.9 million, or 50%, to $0.88 million for the quarter ended March 31, 2024, compared to $1.7 million for the same period in 2023[199] Assets and Liabilities - Total current assets decreased by 44.6% from $5,729,000 as of December 31, 2023, to $3,169,000 as of March 31, 2024[19] - Total liabilities decreased by 22.4% from $9,511,000 as of December 31, 2023, to $7,383,000 as of March 31, 2024[19] - The company has a total outstanding debt of $1,250,000 as of March 31, 2024, down from $2,000,000 as of December 31, 2023, after repaying $787,000 of convertible promissory notes during the quarter[113][114] - Cash and cash equivalents decreased from $1,234,000 at the beginning of Q1 2024 to $301,000 at the end of the period[25] Financing and Investment - The company issued 417,395 shares during Q1 2024, increasing additional paid-in capital to $26,256,000[23] - An institutional investor has agreed to purchase convertible promissory notes totaling up to $5,200,000, resulting in gross proceeds of up to $4,420,000 for the Company[37] - The Parent Company, SecureKloud Technologies, Inc., is willing to invest an additional $5 million in equity to support the Company's working capital and investment requirements[38] - The Company has sold $956,000 of shares through the ATM Sales Agreement and plans to sell an additional capacity of approximately $500,000[36] Operational Insights - The company continues to focus on digital transformation solutions for the healthcare sector, leveraging technologies such as AI and Big Data[28] - The Company operates in three distinct reportable segments: Software Services, Managed Services and Support, and Platform Services[47] - The company aims to shift focus towards Managed Services and Support and Platform Services to drive long-term revenue growth and enhance customer retention[206] Future Outlook - The company plans to continue investing in sales and marketing to promote its solutions, anticipating an increase in employee strength due to these investments[168] - Research and development expenses are expected to increase in absolute dollars as the company focuses on developing new product offerings and enhancing existing ones[181] - General and administrative expenses are anticipated to increase to support business growth, although they are expected to decrease as a percentage of revenue over the long term[186] - The company expects that the recent financing transactions will positively impact stockholders' equity by Q4 2024[37]
Healthcare Triangle(HCTI) - 2024 Q1 - Quarterly Report