NEW
YORK, May 11, 2022 /PRNewswire/ --
Marpai, Inc. ("Marpai" or the "Company") (Nasdaq:
MRAI), an AI-technology company transforming the $22B Third-Party Administrator (TPA) market
supporting self-funded employer health plans, today reported
financial results for the first quarter ended March 31, 2022.
The Company's consolidated results of operations include the
results of operations of Marpai and its wholly owned subsidiary,
Marpai Health, Inc., for all periods presented, and the
results of Continental Benefits, LLC ("Continental Benefit") since
its acquisition on April 1, 2021.
Financial Highlights
- Net revenue of approximately $6.2
million for the first quarter of 2022, compared to net
revenue of approximately $5.9 million
for the fourth quarter of 2021, representing a sequential increase
of approximately $300,000, or
5.5%.
- The number of our customers' employees covered under the
Company's administered health plans was 21,139, 25,195 and 25,136
on March 31, 2022, December 31, 2021, and September 30 ,2021, respectively.
- Operating expenses (including cost of revenues) were
approximately $11.8 million for the
first quarter of 2022, as compared to approximately $11.6 million for the fourth quarter of 2021, and
approximately $1.4 million for the
first quarter of 2021, reflecting the acquisition of Continental
Benefit, which increased the overall level of activity of the
Company.
- Net loss was approximately $5.5
million for the first quarter of 2022, compared to net loss
of approximately $5.7 million for the
fourth quarter of 2021, and a net loss of approximately
$1.6 million for the first quarter of
2021.
- Adjusted negative EBITDA of approximately $4.0 million for the first quarter of 2022
compared to negative EBITDA of approximately $4.7 million in the fourth quarter of 2021 and
negative EBITDA of approximately $1.2
million for the first quarter of 2021. A
reconciliation of GAAP to non-GAAP measures has been provided in
the financial statement tables included in this press release. An
explanation of these measures is also included below under the
heading "Non-GAAP Financial Measures."
"We continue to expand our partnerships with top healthcare
brokers focusing on the upcoming selling season," said Edmundo Gonzalez, Chief Executive Officer of
Marpai. "Our investments over the past quarters are aimed at
making meaningful progress in terms of new business wins, with key
dates for us to implement new business being October 1st, 2022, and January 1st, 2023.
Second Quarter 2022 Financial Guidance
The Company expects the second quarter 2022 revenue to be in a
range of $5.2 million to $5.5 million.
The foregoing forward-looking statements reflect our
expectations as of today's date. Given the number of risk factors,
uncertainties and assumptions discussed below, actual results may
differ materially. We do not intend to update our financial outlook
until our next quarterly results announcement.
Webcast and Conference Call Information
Marpai will host a conference call and webcast tomorrow, on
Thursday, May 12,
2022 at 8:30 a.m. ET to answer questions about
the Company's operational and financial highlights for
its first quarter of 2022.
Investors interested in listening to the conference call may do
so by dialing (866)-652-5200 for domestic callers or
+1-412-902-4216 for international callers, or by dialing
1-855-669-9657 for Canadian callers ,or via webcast:
https://app.webinar.net/weABj0MVL1g
For interested individuals unable to join the conference call, a
recording of the webcast will also be available on the Marpai, Inc.
investor relations site https://ir.marpaihealth.com.
About Marpai, Inc.
Marpai, Inc. (Nasdaq: MRAI) is a technology company bringing
AI-powered health plan services to employers providing health
benefits to employees. Primarily competing within the $22B TPA (Third Party Administrator) sector
serving self-funded health plans and representing over $1T in
annual health care claims, Marpai's SMART services focus on
reducing claims costs, lowering reinsurance premiums, and elevating
care quality for plan members. Marpai's proprietary deep learning
algorithms predict potential near-term health events for members to
prevent costly claims and improve health outcomes. Operating
nationwide, Marpai offers access to provider networks including
Aetna and Cigna, and partners with brokers and consultants. For
more information, visit www.marpaihealth.com.
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, including statements
regarding anticipated second quarter 2022 results. 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 the expected timing of new
business wins and its second quarter revenue guidance. 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.
Use of Non-GAAP Financial Measures and Their
Limitations
In addition to our results and measures of performance
determined in accordance with U.S. GAAP presented in this press
release, we believe that certain non-GAAP financial measures are
useful in evaluating and comparing our financial and operational
performance over multiple periods, identifying trends affecting our
business, formulating business plans and making strategic
decisions.
Adjusted EBITDA is a key performance measure that our management
uses to assess our financial performance and is also used for
internal planning and forecasting purposes.
We believe that Adjusted EBITDA, together with a reconciliation
to net loss, helps identify underlying trends in our business and
helps investors make comparisons between our company and other
companies that may have different capital structures, tax rates, or
different forms of employee compensation. Accordingly, we believe
that Adjusted EBITDA provides useful information to investors and
others in understanding and evaluating our operating results,
enhancing the overall understanding of our past performance and
future prospects, and allowing for greater transparency with
respect to a key financial metric used by our management in its
financial and operational decision-making. Our use of Adjusted
EBITDA has limitations as an analytical tool, and you should not
consider these measures in isolation or as a substitute for
analysis of our financial results as reported under U.S. GAAP. Some
of these potential limitations include:
- other companies, including companies in our industry which have
similar business arrangements, may report Adjusted EBITDA, or
similarly titled measures but calculate them differently, which
reduces their usefulness as comparative measures;
- although depreciation and amortization expenses are non-cash
charges, the assets being depreciated and amortized may have to be
replaced in the future, and Adjusted EBITDA does not reflect cash
capital expenditures for such replacements or for new capital
expenditure requirements;
- Adjusted EBITDA also does not reflect changes in, or cash
requirements for, our working capital needs or the potentially
dilutive impact of stock-based compensation; and
- Adjusted EBITDA does not reflect the interest expense, or the
cash requirements necessary to service interest or principal
payments, on our debt that we may incur.
Because of these and other limitations, you should consider our
non-GAAP measures only as supplemental to other GAAP-based
financial measures.
MARPAI, INC. AND
SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(in thousands, except
share and per share data)
|
(unaudited)
|
|
|
|
|
31-Mar 2022
|
31-Dec 2021
|
ASSETS
|
|
|
Current
assets:
|
|
|
Cash and cash
equivalents
|
$
14,108
|
$19,183
|
Restricted
cash
|
8,004
|
6,751
|
Accounts
receivable
|
110
|
209
|
Unbilled,
receivable
|
-
|
15
|
Prepaid expenses
and other current assets
|
567
|
743
|
Other current
assets
|
90
|
91
|
Total current assets
|
22,879
|
26,992
|
|
|
|
Property and equipment,
net
|
923
|
890
|
Capitalized software,
net
|
6,161
|
6,305
|
Operating lease
right-of-use assets
|
1,919
|
2,044
|
Goodwill
|
2,383
|
2,383
|
Intangible
assets,net
|
5,288
|
5,508
|
Security
deposits
|
52
|
52
|
Other long-term
asset
|
28
|
28
|
Total
assets
|
$
39,633
|
$44,202
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
Current
liabilities:
|
|
|
Accounts
payable
|
$
1,065
|
$
1,126
|
Accrued
expenses
|
2,174
|
2,525
|
Accrued fiduciary
obligations
|
6,669
|
5,541
|
Deferred
revenues
|
1,242
|
1,165
|
Current portion
of operating lease obligations
|
813
|
784
|
Due to related
party
|
4
|
4
|
Total current liabilities
|
11,967
|
11,145
|
|
|
|
Other long-term
liabilities
|
45
|
45
|
Operating lease
liabilities, net of current portion
|
1,152
|
1,302
|
Deferred tax
liabilities
|
2,001
|
2,001
|
Total liabilities
|
15,165
|
14,493
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY
|
|
|
Common stock,
$0.0001 par value, 227,791,050 shares authorized; 20,299,727
issued and outstanding
|
|
|
at
March 31, 2022 and December 31, 2021
|
2
|
2
|
Additional
paid-in-capital
|
51,481
|
51,232
|
Accumulated
deficit
|
(27,015)
|
(21,526)
|
Total stockholders'
equity
|
24,468
|
29,708
|
Total
liabilities & stockholders' equity
|
$
39,633
|
$44,201
|
MARPAI, INC. AND
SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands, except
share and per share data)
|
(unaudited)
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
2022
|
2021
|
|
Revenues
|
$
6,219
|
$
-
|
|
|
|
|
|
Costs and
Expenses
|
|
|
|
|
|
|
|
Cost of revenue
(exclusive of depreciation and
|
|
|
|
amortization
shown separately below)
|
4,547
|
0
|
|
General and
Administrative
|
2,902
|
802
|
|
Sales and
Marketing
|
1,559
|
321
|
|
Information
Technology
|
1,134
|
0
|
|
Research
and development
|
593
|
264
|
|
Depreciation and
amortization
|
826
|
18
|
|
Facilities
|
197
|
0
|
|
Total costs and
expenses
|
11,758
|
1,405
|
|
Operating
Loss
|
(5,539)
|
(1,405)
|
|
Other income
(expenses)
|
|
|
|
Interest expense
, net
|
(4)
|
(184)
|
|
Other
income
|
49
|
7
|
|
Foreign exchange
loss
|
4
|
(10)
|
|
(Loss) income before
provision for income taxes
|
(5,490)
|
(1,592)
|
|
Income tax
benefit
|
0
|
0
|
|
Net
loss
|
(5,490)
|
(1,592)
|
|
|
|
|
|
Net loss per share,
basic & fully diluted
|
0
|
-1
|
|
|
|
|
|
Weighted average
number of common shares, basic
|
19,629,213
|
2,897,412
|
|
and fully
diluted
|
MARPAI, INC. AND
SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(UNAUDITED)
|
|
|
Three Months Ended
March 31,
|
|
2022
|
|
2021
|
Cash flows (used in)
operating activities
|
|
|
|
Net loss
|
$ (5,490)
|
|
$ (1,592)
|
Adjustments to
reconcile net loss to net cash (used in) operating
activities:
|
|
|
|
Depreciation and
amortization
|
826
|
|
18
|
Share-based
compensation
|
666
|
|
231
|
Amortization of
right-to-use asset
|
33
|
|
21
|
Amortization of
debt discount
|
-
|
|
27
|
Non-cash
interest
|
-
|
|
155
|
Changes in
operating assets and liabilities:
|
|
|
|
Accounts
receivable and unbilled receivebles
|
113
|
|
-
|
Prepaid expenses
and other assets
|
176
|
|
107
|
Other
receivables
|
2
|
|
-
|
Accounts
payable
|
(61)
|
|
327
|
Accrued
expenses
|
(768)
|
|
(31)
|
Accrued fiduciary
obligations
|
1,128
|
|
-
|
Operating lease
liabilities
|
(30)
|
|
(23)
|
Other
liabilities
|
77
|
|
-
|
Net cash (used in
) operating activities
|
(3,328)
|
|
(760)
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
Capitalization of
software development costs
|
(393)
|
|
(500)
|
Purchase of
property and equipment
|
(101)
|
|
(10)
|
Net cash (used
in) investing activities
|
(494)
|
|
(510)
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
Proceeds from
convertible notes
|
-
|
|
325
|
Proceeds from
issuance of warrants
|
-
|
|
51
|
Net cash provided
by financing activities
|
-
|
|
376
|
|
|
|
|
|
|
|
|
Net increase in
cash, cash equivalents and restricted cash
|
(3,822)
|
|
(894)
|
Cash, cash
equivalents and restricted cash at beginning of the
period
|
25,934
|
|
1,818
|
Cash, cash
equivalents and restricted cash at end of period
|
22,112
|
|
924
|
|
|
|
|
Reconciliation of
cash, cash equivalents and restricted cash reported in
the
|
|
|
|
condensed
consolidated balance sheet
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$ 14,108
|
|
$
863
|
Restricted
cash
|
8,004
|
|
61
|
Total cash, cash
equivalents and restricted cash as shown in
the
|
|
|
|
condensed
consolidated balance sheet
|
$ 22,112
|
|
$
924
|
MARPAI, INC. AND
SUBSIDIARIES
|
RECONCILIATION OF
NET LOSS TO NON-GAAP ADJUSTED EBITDA
|
(in
thousands)
|
(unaudited)
|
|
|
Three Months Ended
March 31,
|
|
2022
|
2021
|
|
|
|
Net
loss
|
$
(5,490)
|
$
(1,592)
|
Interest expense
and foreign exchange loss, net
|
(49)
|
187
|
Depreciation and
amortization expense
|
826
|
18
|
Stock based
compensation expense
|
666
|
231
|
|
|
|
Adjusted
EBITDA
|
(4,047)
|
(1,156)
|
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SOURCE Marpai