Revenue grows to
Reaffirms 2022 revenue guidance of
“The first quarter performance was a strong start to 2022," said
First Quarter 2022 Financial Results
●
Three months ended | Year-over- | ||||||
year % | |||||||
2022 | 2021 | change | |||||
Unaudited | Unaudited | ||||||
Total revenue | $6,391,279 | $1,620,609 | 294% | ||||
Net loss | $(11,854,088) | $(4,515,653) | -163% | ||||
Basic and diluted loss per share | $(0.37) | $(0.19) | -95% | ||||
Proforma revenue | $6,391,279 | $3,629,521 | 76% | ||||
Adjusted EBITDA1 | $(3,411,368) | $(2,854,769) | -19% |
● Revenue for the quarter was
● Net Loss for the quarter was
● Adjusted EBITDA for the quarter was negative
●
(1) This release uses non-GAAP financial measures that are adjusted for the impact of various
First Quarter Operational Highlights
- Revenue growth continued with strong year-over-year performance
- Healthcare information revenue grew 5x year-over-year to
$3.5 million - Healthcare information contracted backlog continued to grow with new strategic accounts
- Launched Chronos, our newest hybrid longitudinal healthcare information product
- Expanded existing point of sale footprint into new markets (e.g.,
New Mexico adult-use)
Quarterly Conference Call and Webcast
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Source:
Cautionary Statements Regarding Forward-Looking Statements
This release contains “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. In this context, forward-looking statements often address expected future business and financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” “will,” “would,” “target,” similar expressions and variations or negatives of these words. In particular, this release includes an estimate of our full year 2022 revenue outlook as of
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||
2022 | 2021 | |||
Unaudited | ||||
ASSETS | ||||
Current assets: | ||||
Cash and cash equivalents | ||||
Marketable securities | 12,393,430 | 12,399,361 | ||
Accounts receivable, net | 3,193,881 | 1,947,540 | ||
Contract assets | 1,687,813 | 1,056,891 | ||
Prepaid expenses | 935,907 | 1,017,927 | ||
Other assets | 368,712 | 900,242 | ||
Total current assets | 33,333,137 | 35,985,766 | ||
Property and equipment, net | 2,386,533 | 1,531,959 | ||
Intangible assets, net | 8,482,349 | 9,051,184 | ||
9,099,372 | 9,099,372 | |||
Right of use assets, net | 798,016 | 859,637 | ||
Deposits and other assets | 322,159 | 314,443 | ||
Total assets | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Current liabilities: | ||||
Accounts payable | ||||
Accrued expenses | 3,559,286 | 4,068,109 | ||
Short-term operating lease liabilities | 246,920 | 247,325 | ||
Notes payable | - | 13,122 | ||
Warrant liability | 149,394 | 369,234 | ||
Deferred revenues | 2,964,222 | 976,268 | ||
Total current liabilities | 8,176,054 | 6,799,125 | ||
Long-term liabilities: | ||||
Long-term operating lease liabilities | 551,970 | 611,523 | ||
Convertible notes payable, net of debt issuance costs ( | 24,471,781 | 24,260,448 | ||
Total long-term liabilities | 25,023,751 | 24,871,971 | ||
Total liabilities | 33,199,805 | 31,671,096 | ||
Commitments and contingencies | ||||
Stockholders' equity: | ||||
Common Stock; par value | 31,929 | 31,773 | ||
Preferred Stock; par value | - | - | ||
Additional paid-in capital | 65,864,050 | 57,959,622 | ||
Accumulated deficit | (44,674,218) | (32,820,130) | ||
Total stockholders' equity | 21,221,761 | 25,171,265 | ||
Total liabilities and stockholders' equity | ||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||
(UNAUDITED) | |||
For the Three Months Ended | |||
2022 | 2021 | ||
Revenues: | |||
Information and Software | |||
Services | 428,706 | 96,311 | |
Other | 153,479 | 115,320 | |
Total revenues | 6,391,279 | 1,620,609 | |
Costs and Expenses: | |||
Cost of revenues | 1,567,549 | 457,886 | |
Research and development | 3,222,871 | 1,497,838 | |
Sales and marketing | 1,411,314 | 598,975 | |
General and administrative | 6,088,454 | 2,784,562 | |
Separation expenses | 5,611,857 | - | |
Gain on sale of assets | (202,159) | - | |
Depreciation and amortization | 605,674 | 187,584 | |
Transaction related expenses | - | 1,210,279 | |
Total costs and expenses | 18,305,560 | 6,737,124 | |
Loss From Operations | (11,914,281) | (5,116,515) | |
Other Income (Expense): | |||
Change in fair value of warrant liability | 219,840 | 623,627 | |
Interest and investment income | 4,488 | 1,241 | |
Interest expense | (237,111) | - | |
Foreign currency related gains (losses) | 77,976 | (24,006) | |
Total other income, net | 65,193 | 600,862 | |
Net loss before income taxes | (11,849,088) | (4,515,653) | |
Income tax expense | (5,000) | - | |
Net Loss | (11,854,088) | (4,515,653) | |
Basic and diluted net loss per common share | |||
Weighted-average shares outstanding: | 31,857,685 | 24,033,512 | |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||
(UNAUDITED) | ||||
For the Three Months Ended | ||||
2022 | 2021 | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net loss | ||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Depreciation and amortization | 605,674 | 187,584 | ||
Amortization on right of use asset | 61,621 | 115,191 | ||
Gain on sale of assets | (202,159) | - | ||
Amortization of debt issuance costs | 1,333 | - | ||
Accrued interest on Convertible Notes | 210,000 | - | ||
Realized and unrealized gain on marketable securities | (3,399) | (2,156) | ||
Provision for doubtful accounts | 22,210 | 14,632 | ||
Stock-based compensation expense | 7,904,584 | 863,883 | ||
Change in fair value of warrant liability | (219,840) | (623,627) | ||
Issuance of warrants in connection with transaction expenses | - | 389,976 | ||
Change in operating assets and liabilities: | ||||
Accounts receivable | (1,280,960) | (4,610) | ||
Contract assets | (630,922) | 33,502 | ||
Prepaid expenses | 82,020 | (235,486) | ||
Changes in lease liabilities during the period | (59,958) | (8,657) | ||
Deposits and other assets | 523,814 | (416,399) | ||
Accounts payable | 131,165 | 625,066 | ||
Accrued expenses | (508,823) | 92,566 | ||
Deferred revenues | 1,987,954 | (124,610) | ||
Other long-term liabilities | - | (2) | ||
Net cash used in operating activities | (3,229,774) | (3,608,800) | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Additions to property and equipment | (902,420) | (64,041) | ||
Proceeds from sale of assets | 225,575 | - | ||
Purchase of marketable securities | (12,390,670) | - | ||
Sale of marketable securities | 12,400,000 | 4,000,000 | ||
Cash acquired as part of business combination | - | 1,310,977 | ||
Net cash (used in) provided by investing activities | (667,515) | 5,246,936 | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Proceeds from exercise of MOR Class B options | - | 292,830 | ||
Payments on notes payable and financing arrangements | (13,122) | (682) | ||
Net cash (used in) provided by financing activities | (13,122) | 292,148 | ||
Net change in cash | (3,910,411) | 1,930,284 | ||
Cash and cash equivalents, beginning of period | 18,663,805 | 665,463 | ||
Cash and cash equivalents, end of period | ||||
Supplemental disclosure of cash flow information | ||||
Cash paid for interest | $- | |||
Cash paid for taxes | $- | $- | ||
Non-cash Investing Activities: | ||||
Non-cash consideration for Helix acquisition | $- | |||
Non-GAAP Financial Measures
In this press release, we have provided certain non-GAAP measures, which we define as financial information that has not been prepared in accordance with
Adjusted EBITDA is used by our management as an additional measure of our Company’s performance for purposes of business decision-making, including developing budgets, managing expenditures and evaluating potential acquisitions or divestitures. Period-to-period comparisons of Adjusted EBITDA help our management identify additional trends in our Company’s financial results that may not be shown solely by period-to-period comparisons of net income. In addition, we may use Adjusted EBITDA in the incentive compensation programs applicable to some of our employees in order to evaluate our Company’s performance. Our management recognizes that Adjusted EBITDA has inherent limitations because of the excluded items, particularly those items that are recurring in nature. In order to compensate for those limitations, management also reviews the specific items that are excluded from Adjusted EBITDA, but included in net income, as well as trends in those items.
We believe that the presentation of Adjusted EBITDA is useful to investors in their analysis of our results for reasons similar to the reasons why our management finds it useful and because it helps facilitate investor understanding of decisions made by management in light of the performance metrics used in making those decisions. In addition, as more fully described below, we believe that providing Adjusted EBITDA, together with a reconciliation of net loss to Adjusted EBITDA, helps investors make comparisons between our Company and other companies that may have different capital structures, different effective income tax rates and tax attributes, different capitalized asset values and/or different forms of employee compensation. However, Adjusted EBITDA is not intended as a substitute for comparisons based on net loss. In making any comparisons to other companies, investors need to be aware that companies use different non-GAAP measures to evaluate their financial performance. Investors should pay close attention to the specific definition being used and to the reconciliation between such measures and the corresponding
The following is an explanation of the items excluded by us from Adjusted EBITDA but included in net loss:
• Depreciation and Amortization. Depreciation and amortization expense is a non-cash expense relating to capital expenditures and intangible assets arising from acquisitions that are expensed on a straight-line basis over the estimated useful life of the related assets. We exclude depreciation and amortization expense from Adjusted EBITDA because we believe that (i) the amount of such expenses in any specific period may not directly correlate to the underlying performance of our business operations and (ii) such expenses can vary significantly between periods as a result of new acquisitions and full amortization of previously acquired tangible and intangible assets. Accordingly, we believe that this exclusion assists management and investors in making period-to-period comparisons of operating performance. Investors should note that the use of tangible and intangible assets contributed to revenue in the periods presented and will contribute to future revenue generation and should also note that such expense will recur in future periods.
• Stock-Based Compensation Expense. Stock-based compensation expense is a non-cash expense arising from the grant of stock-based awards to employees. We believe that excluding the effect of stock-based compensation from Adjusted EBITDA assists management and investors in making period-to-period comparisons in our Company’s operating performance because (i) the amount of such expenses in any specific period may not directly correlate to the underlying performance of our business operations and (ii) such expenses can vary significantly between periods as a result of the timing of grants of new stock-based awards, including grants in connection with acquisitions. Additionally, we believe that excluding stock-based compensation from Adjusted EBITDA assists management and investors in making meaningful comparisons between our Company’s operating performance and the operating performance of other companies that may use different forms of employee compensation or different valuation methodologies for their stock-based compensation. Investors should note that stock-based compensation is a key incentive offered to employees whose efforts contributed to the operating results in the periods presented and are expected to contribute to operating results in future periods. Investors should also note that such expenses will recur in the future.
• Interest Expense. Interest expense is associated with the 3.5% Convertible Notes due 2025 entered into on
• Investment Income. Investment income is associated with the level of marketable debt securities and other interest-bearing accounts in which we invest. Interest and investment income can vary over time due to a variety of financing transactions, changes in interest rates, cash used to fund operations and capital expenditures and acquisitions that we have entered into or may enter into in the future. We exclude interest and investment income from Adjusted EBITDA (i) because these items are not directly attributable to the performance of our business operations and, accordingly, their exclusion assists management and investors in making period-to-period comparisons of operating performance and (ii) to assist management and investors in making comparisons to companies with different capital structures. Investors should note that interest income will recur in future periods.
• Foreign Currency Related Gains (Losses). Foreign currency related gains (losses) result from foreign currency transactions and translation gains and losses related to
• Other Items. We engage in other activities and transactions that can impact our net loss. In the periods being reported, these other items included: (i) change in fair value of warrant liability which related to warrants assumed in the acquisition of Helix; (ii) transaction related expenses which consist of professional fees and other expenses incurred in connection with the acquisition of Helix; and (iii) other income which consists of profits on marketable security investments. We exclude these other items from Adjusted EBITDA because we believe these activities or transactions are not directly attributable to the performance of our business operations and, accordingly, their exclusion assists management and investors in making period-to-period comparisons of operating performance. Investors should note that some of these other items may recur in future periods.
• Gain on sale of assets. On
• Separation expenses. During
• Income tax expense. Medical Outcomes Research Analytics, LLC was organized as a limited liability company until the completion of the Helix acquisition. As a result, we were treated as a partnership for federal and state income tax purposes through
There are limitations to using non-GAAP financial measures because non-GAAP financial measures are not prepared in accordance with
The non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact upon our reported financial results. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which items are adjusted to calculate our non-GAAP financial measures. We compensate for these limitations by analyzing current and future results on a
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with
The following table reconciles the specific items excluded from
Reconciliation of | |||
(UNAUDITED) | |||
Three Months Ended | |||
2022 | 2021 | ||
Revenues: | |||
Information and Software | |||
Services | 428,706 | 96,311 | |
Other | 153,479 | 115,320 | |
Total revenues | |||
- | |||
Net loss | |||
Depreciation & amortization | 605,674 | 187,584 | |
Stock based compensation expense | 7,904,584 | 863,883 | |
Change in fair value of warrant liability | (219,840) | (623,627) | |
Transaction related expenses | - | 1,210,279 | |
Interest and investment income (expense) | 232,623 | (1,241) | |
Foreign currency related gains | (77,976) | 24,006 | |
Gain on sale of security monitoring assets | (202,159) | - | |
Severance expense | 194,814 | - | |
Income tax expense | 5,000 | - | |
Adjusted EBITDA | |||
Source:
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