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“Our 2021 second-quarter financial results were in-line with our expectations and remained steady compared with the previous quarter,” said
As a result of the
Software and Services Highlights:
Business and Financial Highlights
For the 2021 second quarter:
Conference Call Information and Forward-Looking Statements
Later today, the Company will host a conference call at
Discussion during the conference call may include forward-looking statements regarding topics such as the Company’s financial status and performance, regulatory and operational developments, and other comments the Company may make about its future plans or prospects in response to questions from participants on the conference call.
Use of Non-GAAP Financial Measures
This news release contains references to Non-GAAP financial measures, including adjusted net loss and adjusted net loss per share, which are financial measures that are not prepared in conformity with
About
This news release contains certain statements of a forward-looking nature relating to future events or future business performance. Forward-looking statements can be identified by the words “expects,” “anticipates,” “believes,” “intends,” “estimates,” “plans,” “will,” “outlook” and similar expressions. Forward-looking statements are based on management’s current plans, estimates, assumptions and projections, and speak only as of the date they are made. Risks and uncertainties include, but are not limited to: our ability to successfully integrate a complex learning system to address a wide range of healthcare issues; our ability to successfully amass the requisite data to achieve maximum network effects; appropriately allocating financial and human resources across a broad array of product and service offerings; raising additional capital as necessary to fund our operations; our ability to grow the market for our software and data solutions; successfully enhancing our software and data solutions to achieve market acceptance and keep pace with technological developments; customer concentration; competition; security breaches; bandwidth limitations; our ability to integrate
Consolidated Balance Sheets (Dollars in thousands) |
|||||||
|
|
|
|
||||
|
(Unaudited) |
|
|
||||
Assets |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
51,993 |
|
|
$ |
22,787 |
|
Accounts receivable, net |
4,629 |
|
|
3,273 |
|
||
Related party receivables, net |
704 |
|
|
1,031 |
|
||
Prepaid expenses and other current assets |
3,936 |
|
|
3,504 |
|
||
Total current assets |
61,262 |
|
|
30,595 |
|
||
Property, plant, and equipment, net |
12,648 |
|
|
13,102 |
|
||
|
98,333 |
|
|
98,333 |
|
||
Intangible assets, net |
43,504 |
|
|
47,969 |
|
||
Related party receivable, net of current |
1,144 |
|
|
823 |
|
||
Operating lease right-of-use assets |
6,740 |
|
|
7,539 |
|
||
Other assets |
1,648 |
|
|
1,927 |
|
||
Total assets |
$ |
225,279 |
|
|
$ |
200,288 |
|
|
|
|
|
||||
Liabilities and Stockholders' Equity |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable |
$ |
2,323 |
|
|
$ |
5,122 |
|
Accrued and other current liabilities |
11,983 |
|
|
13,975 |
|
||
Deferred revenue |
1,251 |
|
|
1,166 |
|
||
Related party payables, net |
4,550 |
|
|
4,238 |
|
||
Notes payable |
— |
|
|
268 |
|
||
Related party convertible note, net |
4,988 |
|
|
9,411 |
|
||
Convertible notes, net |
4,473 |
|
|
90,578 |
|
||
Total current liabilities |
29,568 |
|
|
124,758 |
|
||
Deferred revenue, net of current |
1,240 |
|
|
393 |
|
||
Related party liabilities |
34,653 |
|
|
31,091 |
|
||
Related party promissory note |
112,666 |
|
|
112,666 |
|
||
Related party convertible note, net |
62,234 |
|
|
— |
|
||
Convertible notes, net |
74,563 |
|
|
— |
|
||
Deferred income taxes, net |
1,672 |
|
|
1,853 |
|
||
Operating lease liabilities |
7,261 |
|
|
8,170 |
|
||
Other liabilities |
37,527 |
|
|
32,757 |
|
||
Total liabilities |
361,384 |
|
|
311,688 |
|
||
Commitments and Contingencies (Note 14) |
|
|
|
||||
|
|
|
|
||||
Stockholders' deficit |
|
|
|
||||
Common stock, |
12 |
|
|
11 |
|
||
Additional paid-in capital |
889,189 |
|
|
891,583 |
|
||
Accumulated deficit |
(1,025,349) |
|
|
(1,003,210) |
|
||
Accumulated other comprehensive loss |
(122) |
|
|
(168) |
|
||
Total |
(136,270) |
|
|
(111,784) |
|
||
Noncontrolling interests |
165 |
|
|
384 |
|
||
Total stockholders' deficit |
(136,105) |
|
|
(111,400) |
|
||
Total liabilities and stockholders' deficit |
$ |
225,279 |
|
|
$ |
200,288 |
|
Consolidated Statements of Operations (Dollars in thousands, except per share amounts) (Unaudited) |
|||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Revenue |
|
|
|
|
|
|
|
||||||||
Software-as-a-service related |
$ |
15,504 |
|
|
$ |
17,521 |
|
|
$ |
31,261 |
|
|
$ |
35,642 |
|
Maintenance |
413 |
|
|
— |
|
|
795 |
|
|
— |
|
||||
Professional services |
173 |
|
|
— |
|
|
200 |
|
|
— |
|
||||
Total software-related revenue |
16,090 |
|
|
17,521 |
|
|
32,256 |
|
|
35,642 |
|
||||
Other |
— |
|
|
64 |
|
|
3 |
|
|
123 |
|
||||
Total net revenue |
16,090 |
|
|
17,585 |
|
|
32,259 |
|
|
35,765 |
|
||||
|
|
|
|
|
|
|
|
||||||||
Cost of Revenue: |
|
|
|
|
|
|
|
||||||||
Software-as-a-service related |
5,444 |
|
|
5,916 |
|
|
10,979 |
|
|
11,617 |
|
||||
Maintenance |
270 |
|
|
— |
|
|
477 |
|
|
— |
|
||||
Professional services |
1 |
|
|
— |
|
|
7 |
|
|
— |
|
||||
Amortization of developed technologies |
1,247 |
|
|
1,143 |
|
|
2,494 |
|
|
2,286 |
|
||||
Total software-related cost of revenue |
6,962 |
|
|
7,059 |
|
|
13,957 |
|
|
13,903 |
|
||||
Other |
47 |
|
|
259 |
|
|
93 |
|
|
611 |
|
||||
Total cost of revenue |
7,009 |
|
|
7,318 |
|
|
14,050 |
|
|
14,514 |
|
||||
|
|
|
|
|
|
|
|
||||||||
Gross Profit |
9,081 |
|
|
10,267 |
|
|
18,209 |
|
|
21,251 |
|
||||
|
|
|
|
|
|
|
|
||||||||
Operating Expenses |
|
|
|
|
|
|
|
||||||||
Selling, general and administrative |
11,837 |
|
|
11,995 |
|
|
24,340 |
|
|
24,422 |
|
||||
Research and development |
4,849 |
|
|
4,215 |
|
|
9,862 |
|
|
7,765 |
|
||||
Amortization of acquisition-related assets |
985 |
|
|
866 |
|
|
1,971 |
|
|
1,733 |
|
||||
Total operating expenses |
17,671 |
|
|
17,076 |
|
|
36,173 |
|
|
33,920 |
|
||||
|
|
|
|
|
|
|
|
||||||||
Loss from operations |
(8,590) |
|
|
(6,809) |
|
|
(17,964) |
|
|
(12,669) |
|
||||
Interest expense, net |
(3,803) |
|
|
(4,773) |
|
|
(7,371) |
|
|
(9,430) |
|
||||
Other expense, net |
(3,051) |
|
|
(6,751) |
|
|
(5,621) |
|
|
(3,297) |
|
||||
Loss from related party equity method investment |
— |
|
|
(29,918) |
|
|
— |
|
|
(31,702) |
|
||||
Loss from continuing operations before income taxes |
(15,444) |
|
|
(48,251) |
|
|
(30,956) |
|
|
(57,098) |
|
||||
Provision for (benefit from) income taxes |
6 |
|
|
4 |
|
|
(2) |
|
|
97 |
|
||||
Net loss from continuing operations |
(15,450) |
|
|
(48,255) |
|
|
(30,954) |
|
|
(57,195) |
|
||||
Income (loss) from discontinued operations, net of tax attributable to |
19 |
|
|
(34) |
|
|
24 |
|
|
31,971 |
|
||||
Net loss |
(15,431) |
|
|
(48,289) |
|
|
(30,930) |
|
|
(25,224) |
|
||||
Net loss attributable to noncontrolling interests |
(128) |
|
|
— |
|
|
(219) |
|
|
— |
|
||||
Net loss attributable to |
$ |
(15,303) |
|
|
$ |
(48,289) |
|
|
$ |
(30,711) |
|
|
$ |
(25,224) |
|
|
|
|
|
|
|
|
|
||||||||
Basic and diluted net (loss) income per share attributable to |
|
|
|
|
|
|
|
||||||||
Continuing operations - common stock |
$ |
(0.13) |
|
|
$ |
(0.44) |
|
|
$ |
(0.27) |
|
|
$ |
(0.52) |
|
Discontinued operations - common stock |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
0.29 |
|
Total net loss per share - common stock |
$ |
(0.13) |
|
|
$ |
(0.44) |
|
|
$ |
(0.27) |
|
|
$ |
(0.23) |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding |
|
|
|
|
|
|
|
||||||||
Basic and diluted - common stock |
114,512,542 |
|
|
110,831,456 |
|
|
112,924,619 |
|
|
110,731,925 |
|
Non-GAAP Net Loss from Continuing Operations Attributable to
Non-GAAP Net Loss Per Share from Continuing Operations Attributable to (Dollars in thousands, except per share amounts) (Unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Net loss from continuing operations attributable to |
$ |
(15,322) |
|
|
$ |
(48,255) |
|
|
$ |
(30,735) |
|
|
$ |
(57,195) |
|
Adjustments to GAAP net loss from continuing operations attributable to |
|
|
|
|
|
|
|
||||||||
Loss on Exchange and Prepayment of 2016 Notes |
742 |
|
|
— |
|
|
742 |
|
|
— |
|
||||
Loss from related party equity method investment |
— |
|
|
29,918 |
|
|
— |
|
|
31,702 |
|
||||
Stock-based compensation expense from continuing operations |
851 |
|
|
396 |
|
|
1,734 |
|
|
1,128 |
|
||||
Change in fair value of derivatives liability |
— |
|
|
58 |
|
|
(4) |
|
|
63 |
|
||||
Change in fair value of Bookings Commitment |
2,340 |
|
|
6,855 |
|
|
4,803 |
|
|
3,727 |
|
||||
Noncash interest expense related to convertible notes |
374 |
|
|
1,593 |
|
|
697 |
|
|
3,135 |
|
||||
Intangible amortization from continuing operations |
2,212 |
|
|
2,009 |
|
|
4,425 |
|
|
4,019 |
|
||||
Securities litigation costs |
— |
|
|
— |
|
|
— |
|
|
(103) |
|
||||
Tax (benefit) provision resulting from certain noncash tax items |
(45) |
|
|
(36) |
|
|
(88) |
|
|
(36) |
|
||||
Total adjustments to GAAP net loss from continuing operations attributable to |
6,474 |
|
|
40,793 |
|
|
12,309 |
|
|
43,635 |
|
||||
Net loss from continuing operations attributable to |
$ |
(8,848) |
|
|
$ |
(7,462) |
|
|
$ |
(18,426) |
|
|
$ |
(13,560) |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average basis common shares outstanding |
114,512,542 |
|
|
110,831,456 |
|
|
112,924,619 |
|
|
110,731,925 |
|
||||
|
|
|
|
|
|
|
|
||||||||
Net loss per common share from continuing operations attributable to |
$ |
(0.08) |
|
|
$ |
(0.07) |
|
|
$ |
(0.16) |
|
|
$ |
(0.12) |
|
Reconciliation of Net Loss per Common Share from Continuing Operations Attributable to
to Net Loss per Common Share from Continuing Operations Attributable to (Unaudited) |
|||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Net loss per common share from continuing operations attributable to |
$ |
(0.13) |
|
|
$ |
(0.44) |
|
|
$ |
(0.27) |
|
|
$ |
(0.52) |
|
Adjustments to GAAP net loss per common share from continuing operations attributable to |
|
|
|
|
|
|
|
||||||||
Loss on Exchange and Prepayment of 2016 Notes |
0.01 |
|
|
— |
|
|
0.01 |
|
|
— |
|
||||
Loss from related party equity method investment |
— |
|
|
0.28 |
|
|
— |
|
|
0.29 |
|
||||
Stock-based compensation expense from continuing operations |
0.01 |
|
|
— |
|
|
0.02 |
|
|
0.01 |
|
||||
Change in fair value of derivatives liability |
— |
|
|
— |
|
|
— |
|
|
— |
|
||||
Change in fair value of Bookings Commitment |
0.01 |
|
|
0.06 |
|
|
0.03 |
|
|
0.03 |
|
||||
Noncash interest expense related to convertible notes |
— |
|
|
0.01 |
|
|
0.01 |
|
|
0.03 |
|
||||
Intangible amortization from continuing operations |
0.02 |
|
|
0.02 |
|
|
0.04 |
|
|
0.04 |
|
||||
Securities litigation costs |
— |
|
|
— |
|
|
— |
|
|
— |
|
||||
Tax (benefit) provision resulting from certain noncash tax items |
— |
|
|
— |
|
|
— |
|
|
— |
|
||||
Total adjustments to GAAP net loss per common share from continuing operations attributable to |
0.05 |
|
|
0.37 |
|
|
0.11 |
|
|
0.40 |
|
||||
Net loss per common share from continuing operations attributable to |
$ |
(0.08) |
|
|
$ |
(0.07) |
|
|
$ |
(0.16) |
|
|
$ |
(0.12) |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20210805005860/en/
rjaffe@rjaffeco.com
424.288.4098
Source: