Full Year Benefit of Maestro Acquisition and
Q4 Corrective Actions Driving Financial Improvement
TAMPA,
Fla., March 26, 2024 /PRNewswire/
-- Marpai, Inc. ("Marpai" or the "Company") (Nasdaq:
MRAI), an independent national Third-Party Administration
(TPA) company transforming the $22
billion TPA market supporting self-funded employer health
plans with affordable, intelligent healthcare, today announced
financial results for the fourth quarter and fiscal year 2023. The
Company expects to hold a webcast to discuss the results on
March 27, 2024.
Q4 2023 Financial Highlights:
- Net revenues were $8.7 million
for the three months ended December 31,
2023, an improvement of $1.1
million, or 14% higher year over year, for the three months
ended December 31, 2022.
- Gross profit was $3.0 million for
the three months ended December 31,
2023, an improvement of $0.2
million, or 6.5% higher year over year for the three months
ended December 31, 2022.
- Operating expenses were $8.2
million for the three months ended December 31, 2022, an improvement of $3.6 million, or 30.6% lower year over year for
the three months ended December 31,
2022.
- Operating loss was $5.2 million
for the three months ended December 31,
2022, an improvement of $3.8
million, or 42.3% lower year over year for the three months
ended December 31, 2022.
- Net loss was $5.0 million for the
three months ended December 31, 2022,
an improvement of $3.5 million, or
41.1% lower year over year for the three months ended December 31, 2022.
- Basic and diluted earnings per share were ($0.65) an improvement of $1.00 per share year over year for the three
months ended December 31, 2022.
Full Year 2023 Highlights:
- Net revenues were $37.2 million
for the year ended December 31, 2023,
an improvement of $12.8 million, or
52.6% higher year over year compared to the year ended December 31, 2022.
- Gross profit was $12.9 million
for the year ended December 31, 2023,
an improvement of $5.7 million, or
79.2% higher year over year compared to the year ended December 31, 2022.
- Operating expenses were $40.9
million, for the year ended December
31, 2023, an increase of $6.7
million, or 19.7% higher year over year compared to the year
ended December 31, 2022. The
$1.3 million variance for the
operating expenses and operating loss from our previously announced
preliminary results was due to the reclassification of $3.0 million goodwill impairment and $1.7 million gain on sale of our non-core FSA
business.
- Operating loss was $28.0 million
for the year ended December 31, 2023,
or an increase of $1.0 million, or
3.8% higher year over year compared to the year ended December 31, 2022.
- Net loss was $28.8 million for
the year ended December 31, 2023, an
increase of $2.3 million, or 8.6%
higher, compared to the year ended December
31, 2022.
- Basic and diluted earnings per share were ($4.14) for the year ended December 31, 2023, an improvement of $1.09 per share compared to the year ended
December 31, 2022.
"The Company delivered on several actions identified when the
new executive team joined in early November
2023," said Damien Lamendola,
Chief Executive Officer of Marpai. "We are starting to gain the
benefits of the Maestro Health acquisition. We remain committed to
our overall vision that Marpai Saves, through
operational and financial improvements, reduces costs for our
clients and improves the quality of care for our members."
Webcast and Conference Call Information
Marpai expects to host a conference call and webcast on
Wednesday, March 27, 2024, at
8:30 a.m. ET to answer questions
about the Company's operational and financial highlights for its
fourth quarter and year ended December 31,
2023.
Investors interested in listening to the conference call may do
so by dialing (800)-836-8184 for domestic callers or
+1-646-357-8785 for international callers, or via webcast:
https://app.webinar.net/8OgAYdJmbd9
About Marpai, Inc.
Marpai, Inc. (Nasdaq: MRAI) is a leading, national TPA company
bringing value-oriented health plan services to employers that
directly pay for employee health benefits. Primarily competing in
the $22 billion TPA sector serving
self-funded employer health plans representing over $1 trillion in annual claims. Marpai works to
deliver the healthiest member population for the health plan
budget. Operating nationwide, Marpai offers access to leading
provider networks including Aetna and Cigna and all TPA services.
For more information, visit www.marpaihealth.com, the content
of which is not incorporated by reference into this press
release.
Forward-Looking Statement Disclaimer
This press release contains forward-looking statements, as that
term is defined in the Private Litigation Reform Act of 1995, that
involve significant risks and uncertainties. Forward-looking
statements can be identified through the use of words such as
"anticipates," "expects," "intends," "plans," "believes," "seeks,"
"estimates," "guidance," "may," "can," "could", "will",
"potential", "should," "goal" and variations of these words or
similar expressions. For example, the Company is using forward
looking statements when it discusses its financial results and that
it remains committed to its overall vision that Marpai Saves,
through operational and financial improvements, reduces cost for
its clients and improving the quality of care for its members.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which reflect Marpai's current
expectations and speak only as of the date of this release. Actual
results may differ materially from Marpai's current expectations
depending upon a number of factors. These factors include, among
others, adverse changes in general economic and market conditions,
competitive factors including but not limited to pricing pressures
and new product introductions, uncertainty of customer acceptance
of new product offerings and market changes, risks associated with
managing the growth of the business. Except as required by law,
Marpai does not undertake any responsibility to revise or update
any forward-looking statements whether as a result of new
information, future events or otherwise.
More detailed information about Marpai and the risk factors that
may affect the realization of forward-looking statements is set
forth in Marpai's filings with the Securities and Exchange
Commission. Investors and security holders are urged to read these
documents free of charge on the SEC's web site
at http://www.sec.gov.
|
MARPAI, INC. AND
SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands)
|
|
|
|
December 31,
2023
|
|
December 31,
2022
|
|
|
|
|
|
|
ASSETS:
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
1,147
|
|
$
13,765
|
|
Restricted
cash
|
|
12,345
|
|
9,353
|
|
Accounts receivable,
net of allowance for credit losses of $24,617 and
$23,458
|
|
1,125
|
|
1,438
|
|
Unbilled
receivable
|
|
768
|
|
350
|
|
Due from buyer for sale
of business unit
|
|
800
|
|
|
|
Prepaid expenses and
other current assets
|
|
892
|
|
1,602
|
|
Other
receivables
|
|
8
|
|
31
|
|
Total current
assets
|
|
17,085
|
|
26,538
|
|
|
|
|
|
|
Property and equipment,
net
|
|
611
|
|
1,506
|
|
Capitalized software,
net
|
|
2,128
|
|
4,589
|
|
Operating lease
right-of-use assets
|
|
2,373
|
|
3,842
|
|
Goodwill
|
|
3,017
|
|
5,837
|
|
Intangible assets,
net
|
|
5,177
|
|
6,323
|
|
Security
deposits
|
|
1,267
|
|
1,293
|
|
Other long-term
asset
|
|
21
|
|
22
|
|
Total
assets
|
|
$
31,679
|
|
$
49,950
|
|
LIABILITIES AND
STOCKHOLDERS' (DEFICIT) EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
|
$
4,649
|
|
$
1,458
|
|
Accrued
expenses
|
|
2,816
|
|
5,275
|
|
Accrued fiduciary
obligations
|
|
11,573
|
|
9,024
|
|
Deferred
revenue
|
|
661
|
|
288
|
|
Current portion of
operating lease liabilities
|
|
512
|
|
1,311
|
|
Other short-term
liabilities
|
|
632
|
|
—
|
|
Due to related
party
|
|
—
|
|
3
|
|
Total current
liabilities
|
|
20,843
|
|
17,360
|
|
|
|
|
|
|
Other long-term
liabilities
|
|
19,401
|
|
20,204
|
|
Operating lease
liabilities, net of current portion
|
|
3,684
|
|
4,772
|
|
Deferred tax
liabilities
|
|
1,189
|
|
1,480
|
|
Total
liabilities
|
|
45,117
|
|
43,815
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
STOCKHOLDERS'
(DEFICIT) EQUITY
|
|
|
|
|
|
Common stock, $0.0001
par value, 227,791,050 shares authorized; 7,960,938 issued and
outstanding at December 31, 2023 and 5,319,758 issued
and outstanding at December 31,
2022 (1)
|
|
1
|
|
1
|
|
Additional paid-in
capital
|
|
63,307
|
|
54,128
|
|
Accumulated
deficit
|
|
(76,746)
|
|
(47,994)
|
|
Total stockholders'
(deficit) equity
|
|
(13,438)
|
|
6,134
|
|
Total liabilities
and stockholders' (deficit) equity
|
|
$
31,679
|
|
$
49,950
|
|
MARPAI, INC. AND
SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS
OF OPERATIONS
|
|
(in
thousands)
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
|
December 31,
2023
|
|
December 31,
2022
|
|
Revenue
|
|
$
37,155
|
|
$
24,342
|
|
Costs and
expenses
|
|
|
|
|
|
Cost of revenue
(exclusive of depreciation and amortization
shown separately below)
|
|
24,239
|
|
17,136
|
|
General and
administrative
|
|
19,177
|
|
12,319
|
|
Sales and
marketing
|
|
6,597
|
|
6,939
|
|
Information
technology
|
|
5,834
|
|
6,373
|
|
Research and
development
|
|
1,312
|
|
3,708
|
|
Depreciation and
amortization
|
|
3,897
|
|
3,538
|
|
Impairment of
goodwill
|
|
3,018
|
|
-
|
|
Facilities
|
|
2,472
|
|
1,013
|
|
Loss on disposal of
assets
|
|
335
|
|
273
|
|
Gain on sale of
business unit
|
|
(1,749)
|
|
-
|
|
Total
costs and expenses
|
|
65,132
|
|
51,299
|
|
Operating
loss
|
|
(27,977)
|
|
(26,957)
|
|
Other
expenses
|
|
|
|
|
|
Other income
|
|
489
|
|
235
|
|
Interest expense,
net
|
|
(1,527)
|
|
(267)
|
|
Foreign exchange
loss
|
|
(27)
|
|
—
|
|
Loss before
provision for income taxes
|
|
(29,042)
|
|
(26,989)
|
|
Income tax
benefit
|
|
(290)
|
|
(521)
|
|
Net
loss
|
|
$
(28,752)
|
|
$
(26,468)
|
|
Net loss per share,
basic & fully diluted
|
|
$
(4.14)
|
|
$
(5.23)
|
|
Weighted average
common shares outstanding, basic and
diluted
|
|
6,951,669
|
|
5,059,959
|
|
|
|
|
|
|
MARPAI, INC. AND
SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS
OF OPERATIONS
|
|
(in
thousands)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
December 31,
2023
|
|
December 31,
2022
|
|
Revenue
|
|
$
8,707
|
|
$
7,628
|
|
Costs and
expenses
|
|
|
|
|
|
Cost of revenue
(exclusive of depreciation and amortization
shown separately below)
|
|
5,709
|
|
4,813
|
|
General and
administrative
|
|
3,239
|
|
4,379
|
|
Sales and
marketing
|
|
1,103
|
|
2,109
|
|
Information
technology
|
|
1,059
|
|
2,510
|
|
Research and
development
|
|
21
|
|
1,024
|
|
Depreciation and
amortization
|
|
923
|
|
1,034
|
|
Impairment of
goodwill
|
|
3,018
|
|
—
|
|
Facilities
|
|
554
|
|
426
|
|
Loss on disposal of
assets
|
|
(15)
|
|
213
|
|
Gain on sale of
business unit
|
|
(1,749)
|
|
-
|
|
Total
costs and expenses
|
|
13,862
|
|
16,508
|
|
Operating
loss
|
|
(5,155)
|
|
(8,880)
|
|
Other
expenses
|
|
|
|
|
|
Other income
|
|
258
|
|
107
|
|
Interest expense,
net
|
|
(425)
|
|
(226)
|
|
Foreign exchange
loss
|
|
6
|
|
5
|
|
Loss before
provision for income taxes
|
|
(5,316)
|
|
(8,994)
|
|
Income tax
benefit
|
|
(290)
|
|
(521)
|
|
Net
loss
|
|
$
(5,026)
|
|
$
(8,473)
|
|
Net loss per share,
basic & fully diluted
|
|
$
0.65
|
|
$
1.63
|
|
Weighted average
common shares outstanding, basic and
diluted
|
|
7,738,879
|
|
5,186,573
|
|
MARPAI, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
|
|
|
|
Twelve Months
Ended
|
|
|
December 31,
2023
|
|
December 31,
2022
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
Net loss
|
|
$
(28,752)
|
|
$
(26,468)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
|
3,897
|
|
3,538
|
|
Loss on disposal of
assets
|
|
335
|
|
273
|
|
Share-based
compensation
|
|
2,099
|
|
3,105
|
|
Warrant
expense
|
|
242
|
|
—
|
|
Shares issued to
vendors in exchange for services
|
|
79
|
|
39
|
|
Amortization of
right-of-use asset
|
|
1,502
|
|
599
|
|
Goodwill
impairment
|
|
3,018
|
|
—
|
|
Gain on sale of
business unit
|
|
(1,749)
|
|
—
|
|
Non-cash
interest
|
|
1,527
|
|
259
|
|
Deferred
taxes
|
|
(290)
|
|
(521)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
Accounts receivable and
unbilled receivable
|
|
(105)
|
|
(597)
|
|
Prepaid expense and
other assets
|
|
710
|
|
893
|
|
Other
receivables
|
|
22
|
|
60
|
|
Security
deposit
|
|
26
|
|
—
|
|
Accounts
payable
|
|
3,191
|
|
181
|
|
Accrued
expenses
|
|
(2,496)
|
|
(2,052)
|
|
Accrued fiduciary
obligations
|
|
2,548
|
|
(12,823)
|
|
Operating lease
liabilities
|
|
(1,887)
|
|
(661)
|
|
Due To related
party
|
|
(3)
|
|
(3)
|
|
Other
liabilities
|
|
337
|
|
(1,068)
|
|
Other asset
|
|
—
|
|
7
|
|
Net cash
used in operating activities
|
|
(15,749)
|
|
(35,239)
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
Cash and restricted
cash acquired as part of acquisitions
|
|
—
|
|
33,388
|
|
Capitalization of
software development costs
|
|
—
|
|
(603)
|
|
Proceeds from sale of
business unit
|
|
1,000
|
|
—
|
|
Disposal of property
and equipment
|
|
27
|
|
—
|
|
Purchase of property
and equipment
|
|
—
|
|
(363)
|
|
Net cash provided by
(used in) investing activities
|
|
1,027
|
|
32,422
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
Proceeds from issuance
of common stock in a public offering, net
|
|
6,432
|
|
—
|
|
Payments to seller for
acquisition
|
|
(1,663)
|
|
—
|
|
Proceeds from issuance
of warrants
|
|
32
|
|
—
|
|
Proceeds from issuance
of common stock in a private offering, net
|
|
295
|
|
—
|
|
Proceeds from stock
option exercises
|
|
—
|
|
—
|
|
Net cash provided by
financing activities
|
|
5,096
|
|
—
|
|
|
|
|
|
|
Net decrease in
cash, cash equivalents and restricted cash
|
|
(9,626)
|
|
(2,817)
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at beginning of
period
|
|
23,117
|
|
25,934
|
|
Cash, cash
equivalents and restricted cash at end of period
|
|
$
13,491
|
|
$
23,117
|
|
|
|
|
|
|
Reconciliation of
cash, cash equivalents, and restricted cash reported in
the condensed consolidated balance
sheet
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
1,147
|
|
$
13,764
|
|
Restricted
cash
|
|
12,344
|
|
9,353
|
|
Total cash, cash
equivalents and restricted cash shown in the condensed
consolidated statement of cash flows
|
|
$
13,491
|
|
$
23,117
|
|
Supplemental
disclosure of non-cash activity
|
|
|
|
|
|
Measurement period
adjustment to Goodwill
|
|
$
198
|
|
$
—
|
|
Long term liability
incurred in connection with the acquisition of Maestro Health,
LLC
|
|
$
—
|
|
$
19,900
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/marpai-reports-fourth-quarter-and-full-year-2023-financial-results-302100113.html
SOURCE Marpai