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“Our 2020 third quarter total software-related revenue increased to
“At the same time, we ramped up our investment in R&D. We continued our development of data solutions capabilities, by expanding our software portfolio and service offerings, and investing in cloud, SaaS and AI technologies.
“We are making excellent progress on integrating the highly complementary OpenNMS business into our operations. OpenNMS provides a number of cross marketing opportunities, by leveraging NantHealth’s data science and AI competencies and OpenNMS’ network monitoring solutions for critical data flows. In addition, we believe the acquisition will drive opportunities to expand into industries beyond healthcare and bring new sets of services to customers of both entities.”
Software and Services Highlights:
Business and Financial Highlights
For the 2020 third 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; achieving significant commercial market acceptance for our sequencing and molecular analysis solutions; establish relationships with, key thought leaders or payers’ key decision makers in order to establish GPS Cancer as a standard of care for patients with cancer; our ability to grow the market for our Systems Infrastructure, and applications; successfully enhancing our Systems Infrastructure and applications to achieve market acceptance and keep pace with technological developments; customer concentration; competition; security breaches; bandwidth limitations; our ability to integrate OpenNMS into our operations;; our ability to obtain regulatory approvals; dependence upon senior management; the need to comply with and meet applicable laws and regulations; unexpected adverse events; clinical adoption and market acceptance of GPS Cancer; and anticipated cost savings. We undertake no obligation to update any forward-looking statement in light of new information or future events, except as otherwise required by law. Forward-looking statements involve inherent risks and uncertainties, most of which are difficult to predict and are generally beyond our control. Actual results or outcomes may differ materially from those implied by the forward-looking statements as a result of the impact of a number of factors, many of which are discussed in more detail in our reports filed with the
Consolidated Balance Sheets | |||||||
(Dollars in thousands) | |||||||
(Unaudited) | |||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ |
25,908 |
|
$ |
5,243 |
|
|
Accounts receivable, net |
|
4,195 |
|
|
6,179 |
|
|
Related party receivables, net |
|
1,577 |
|
|
823 |
|
|
Prepaid expenses and other current assets |
|
4,460 |
|
|
19,341 |
|
|
Current assets of discontinued operation |
|
- |
|
|
6,327 |
|
|
Total current assets |
|
36,140 |
|
|
37,913 |
|
|
Property, plant, and equipment, net |
|
14,232 |
|
|
14,985 |
|
|
|
98,333 |
|
|
97,307 |
|
||
Intangible assets, net |
|
50,202 |
|
|
51,848 |
|
|
Investment in related party |
|
- |
|
|
31,702 |
|
|
Related party receivable, net of current |
|
612 |
|
|
1,108 |
|
|
Operating lease right-of-use assets |
|
7,604 |
|
|
8,470 |
|
|
Other assets |
|
1,856 |
|
|
1,818 |
|
|
Noncurrent assets of discontinued operation |
|
- |
|
|
21,336 |
|
|
Total assets | $ |
208,979 |
|
$ |
266,487 |
|
|
Liabilities and Stockholders' Equity | |||||||
Current liabilities | |||||||
Accounts payable | $ |
2,151 |
|
$ |
3,377 |
|
|
Accrued and other current liabilities |
|
14,833 |
|
|
31,988 |
|
|
Deferred revenue |
|
3,276 |
|
|
7,098 |
|
|
Related party payables, net |
|
4,606 |
|
|
4,120 |
|
|
Notes payable |
|
1,065 |
|
|
238 |
|
|
Current liabilities of discontinued operation |
|
- |
|
|
10,680 |
|
|
Total current liabilities |
|
25,931 |
|
|
57,501 |
|
|
Deferred revenue, net of current |
|
715 |
|
|
1,129 |
|
|
Related party liabilities |
|
29,365 |
|
|
24,227 |
|
|
Related party promissory note |
|
112,666 |
|
|
112,666 |
|
|
Related party convertible note, net |
|
9,268 |
|
|
8,864 |
|
|
Convertible notes, net |
|
89,023 |
|
|
84,648 |
|
|
Deferred income taxes, net |
|
1,697 |
|
|
1,669 |
|
|
Operating lease liabilities |
|
8,508 |
|
|
9,728 |
|
|
Other liabilities |
|
24,135 |
|
|
21,542 |
|
|
Noncurrent liabilities of discontinued operation |
|
- |
|
|
1,649 |
|
|
Total liabilities |
|
301,308 |
|
|
323,623 |
|
|
Stockholders' deficit | |||||||
Common stock, |
|
11 |
|
|
11 |
|
|
Additional paid-in capital |
|
890,590 |
|
|
889,955 |
|
|
Accumulated deficit |
|
(983,108 |
) |
|
(946,884 |
) |
|
Accumulated other comprehensive loss |
|
(283 |
) |
|
(218 |
) |
|
Total |
|
(92,790 |
) |
|
(57,136 |
) |
|
Noncontrolling interests |
|
461 |
|
|
- |
|
|
Total stockholders' deficit | (92,329 |
) |
(57,136 |
) |
|||
Total liabilities and stockholders' deficit | $ |
208,979 |
|
$ |
266,487 |
|
Consolidated Statements of Operations | |||||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||||
2020 |
|
2019 |
|
2020 |
|
2019 |
|||||||||
Revenue | |||||||||||||||
Software-as-a-service related | $ |
18,355 |
|
$ |
18,328 |
|
$ |
53,997 |
|
$ |
54,421 |
|
|||
Maintenance |
|
299 |
|
|
- |
|
|
299 |
|
|
- |
|
|||
Professional services |
|
62 |
|
|
- |
|
|
62 |
|
|
- |
|
|||
Total software-related revenue | $ |
18,716 |
|
$ |
18,328 |
|
$ |
54,358 |
|
$ |
54,421 |
|
|||
Sequencing and molecular analysis |
|
49 |
|
|
276 |
|
|
172 |
|
|
1,581 |
|
|||
Home health care services |
|
- |
|
|
- |
|
|
- |
|
|
2,863 |
|
|||
Total net revenue | $ |
18,765 |
|
$ |
18,604 |
|
$ |
54,530 |
|
$ |
58,865 |
|
|||
Cost of Revenue | |||||||||||||||
Software-as-a-service related | $ |
5,935 |
|
$ |
5,638 |
|
$ |
17,552 |
|
$ |
17,004 |
|
|||
Maintenance |
|
131 |
|
|
121 |
|
|
131 |
|
|
288 |
|
|||
Professional services |
|
15 |
|
|
- |
|
|
15 |
|
|
- |
|
|||
Amortization of developed technologies |
|
1,222 |
|
|
1,143 |
|
|
3,508 |
|
|
3,519 |
|
|||
Total software-related cost of revenue | $ |
7,303 |
|
$ |
6,902 |
|
$ |
21,206 |
|
$ |
20,811 |
|
|||
Sequencing and molecular analysis |
|
216 |
|
|
462 |
|
|
827 |
|
|
4,066 |
|
|||
Home health care services |
|
- |
|
|
- |
|
|
- |
|
|
1,471 |
|
|||
Total cost of revenue | $ |
7,519 |
|
$ |
7,364 |
|
$ |
22,033 |
|
$ |
26,348 |
|
|||
Gross Profit | $ |
11,246 |
|
$ |
11,240 |
|
$ |
32,497 |
|
$ |
32,517 |
|
|||
Operating Expenses | |||||||||||||||
Selling, general and administrative |
|
12,442 |
|
|
13,708 |
|
|
36,864 |
|
|
42,843 |
|
|||
Research and development |
|
4,681 |
|
|
3,262 |
|
|
12,446 |
|
|
10,503 |
|
|||
Amortization of acquisition-related assets |
|
958 |
|
|
1,054 |
|
|
2,691 |
|
|
3,162 |
|
|||
Impairment of intangible asset |
|
- |
|
|
- |
|
|
- |
|
|
3,977 |
|
|||
Total operating expenses | $ |
18,081 |
|
$ |
18,024 |
|
$ |
52,001 |
|
$ |
60,485 |
|
|||
Loss from operations |
|
(6,835 |
) |
|
(6,784 |
) |
|
(19,504 |
) |
|
(27,968 |
) |
|||
Interest expense, net |
|
(4,861 |
) |
|
(4,556 |
) |
|
(14,291 |
) |
|
(13,443 |
) |
|||
Other income (expense), net |
|
747 |
|
|
(3,586 |
) |
|
(2,550 |
) |
|
(5,022 |
) |
|||
Loss from related party equity method investment |
|
- |
|
|
(1,983 |
) |
|
(31,702 |
) |
|
(6,401 |
) |
|||
Loss from continuing operations before income taxes | $ |
(10,949 |
) |
$ |
(16,909 |
) |
$ |
(68,047 |
) |
$ |
(52,834 |
) |
|||
Provision for (benefit from) income taxes |
|
77 |
|
|
(529 |
) |
|
174 |
|
|
(659 |
) |
|||
Net loss from continuing operations | $ |
(11,026 |
) |
$ |
(16,380 |
) |
$ |
(68,221 |
) |
$ |
(52,175 |
) |
|||
(Loss) income from discontinued operations, net of tax attributable to |
|
(16 |
) |
|
3 |
|
|
31,955 |
|
|
1,162 |
|
|||
Net loss | $ |
(11,042 |
) |
$ | (16,377 |
) |
$ | (36,266 |
) |
$ |
(51,013 |
) |
|||
Net loss attributable to noncontrolling interests | $ |
(42 |
) |
|
- |
|
|
(42 |
) |
|
- |
|
|||
Net loss attributable to |
$ |
(11,000 |
) |
$ |
(16,377 |
) |
$ |
(36,224 |
) |
$ |
(51,013 |
) |
|||
Basic and diluted net income (loss) per share attributable to |
|||||||||||||||
Continuing operations - common stock | $ |
(0.10 |
) |
$ |
(0.15 |
) |
$ |
(0.62 |
) |
$ |
(0.47 |
) |
|||
Discontinued operations - common stock | $ |
- |
|
$ |
- |
|
$ |
0.29 |
|
$ |
0.01 |
|
|||
Total net loss per share - common stock | $ |
(0.10 |
) |
$ |
(0.15 |
) |
$ |
(0.33 |
) |
$ |
(0.46 |
) |
|||
Weighted average shares outstanding | |||||||||||||||
Basic and diluted - common stock |
|
110,929,357 |
|
|
110,619,905 |
|
|
110,859,611 |
|
|
110,261,279 |
|
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
|
|
Nine Months Ended
|
|||||||||||||
2020 |
|
2019 |
|
2020 |
|
2019 |
|||||||||
Net loss from continuing operations attributable to |
$ |
(10,984 |
) |
$ |
(16,380 |
) |
$ |
(68,179 |
) |
$ |
(52,175 |
) |
|||
Adjustments to GAAP net loss from continuing operations attributable to |
|||||||||||||||
Loss from related party equity method investment |
|
- |
|
|
1,983 |
|
|
31,702 |
|
|
6,401 |
|
|||
Stock-based compensation expense from continuing operations |
|
633 |
|
|
521 |
|
|
1,761 |
|
|
1,797 |
|
|||
Change in fair value of derivatives liability |
|
(56 |
) |
|
- |
|
|
7 |
|
|
- |
|
|||
Change in fair value of Bookings Commitment |
|
(657 |
) |
|
3,159 |
|
|
3,070 |
|
|
4,664 |
|
|||
Noncash interest expense related to convertible notes |
|
1,644 |
|
|
1,446 |
|
|
4,779 |
|
|
4,207 |
|
|||
Intangible amortization from continuing operations |
|
2,165 |
|
|
2,197 |
|
|
6,184 |
|
|
6,681 |
|
|||
Impairment of intangible asset |
|
- |
|
|
- |
|
|
- |
|
|
3,977 |
|
|||
Loss on sale of business |
|
- |
|
|
- |
|
|
- |
|
|
582 |
|
|||
Securities litigation costs |
|
- |
|
|
500 |
|
|
(103 |
) |
|
500 |
|
|||
Tax provision (benefit) resulting from certain noncash tax items |
|
20 |
|
|
(885 |
) |
|
(16 |
) |
|
(519 |
) |
|||
Total adjustments to GAAP net loss from continuing operations attributable to |
3,749 |
|
8,921 |
|
47,384 |
|
28,290 |
|
|||||||
Net loss from continuing operations attributable to |
$ |
(7,235 |
) |
$ |
(7,459 |
) |
$ |
(20,795 |
) |
$ |
(23,885 |
) |
|||
Weighted average shares outstanding |
|
110,929,357 |
|
|
110,619,905 |
|
|
110,859,611 |
|
|
110,261,279 |
|
|||
Net loss per share from continuing operations attributable to |
$ |
(0.07 |
) |
$ |
(0.07 |
) |
$ |
(0.19 |
) |
$ |
(0.22 |
) |
|||
Reconciliation of Net Loss per Common Share from Continuing Operations Attributable to |
|||||||||||||||
Three Months Ended
|
|
Nine Months Ended
|
|||||||||||||
2020 |
|
2019 |
|
2020 |
|
2019 |
|||||||||
Net loss per common share from continuing operations attributable to |
$ |
(0.10 |
) |
$ |
(0.15 |
) |
$ |
(0.62 |
) |
$ |
(0.47 |
) |
|||
Adjustments to GAAP net loss per common share from continuing operations attributable to |
|||||||||||||||
Loss from related party equity method investment |
|
- |
|
|
0.03 |
|
|
0.28 |
|
|
0.04 |
|
|||
Stock-based compensation expense from continuing operations |
|
0.01 |
|
|
- |
|
|
0.02 |
|
|
0.02 |
|
|||
Change in fair value of derivatives liability |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||
Change in fair value of Bookings Commitment |
|
(0.01 |
) |
|
0.03 |
|
|
0.03 |
|
|
0.04 |
|
|||
Noncash interest expense related to convertible notes |
|
0.01 |
|
|
0.01 |
|
|
0.04 |
|
|
0.04 |
|
|||
Intangible amortization from continuing operations |
|
0.02 |
|
|
0.02 |
|
|
0.06 |
|
|
0.06 |
|
|||
Impairment of intangible asset |
|
- |
|
|
- |
|
|
- |
|
|
0.04 |
|
|||
Loss on sale of business |
|
- |
|
|
- |
|
|
- |
|
|
0.01 |
|
|||
Securities litigation costs |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|||
Tax provision (benefit) resulting from certain noncash tax items |
|
- |
|
|
(0.01 |
) |
|
- |
|
|
- |
|
|||
Total adjustments to GAAP net loss per common share from continuing operations attributable to |
0.03 |
|
0.08 |
|
0.43 |
|
0.25 |
|
|||||||
Net loss per common share from continuing operations attributable to |
$ |
(0.07 |
) |
$ |
(0.07 |
) |
$ |
(0.19 |
) |
$ |
(0.22 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20201105006175/en/
Investor Contact:
rjaffe@rjaffeco.com
424.288.4098
Source: