Core Viewpoint - Semler Scientific, Inc. has announced an upsized offering of $85 million in 4.25% convertible senior notes due 2030, increasing from a previously announced $75 million, with the offering expected to close on January 28, 2025 [1] Key Elements of the Transaction - The notes will be senior unsecured obligations accruing interest at 4.25% per year, maturing on August 1, 2030, with an initial conversion rate of 13.0826 shares per $1,000 principal amount, equating to a conversion price of approximately $76.44 per share, representing a 25% premium over the last reported sale price on January 23, 2025 [2][3] - Semler Scientific may redeem the notes starting August 4, 2028, if certain stock price conditions are met, at a redemption price equal to 100% of the principal amount plus accrued interest [3] - In the event of a "fundamental change," noteholders may require Semler Scientific to repurchase their notes at 100% of the principal amount plus accrued interest [4] Use of Proceeds - The estimated net proceeds from the offering will be approximately $81.4 million, or $95.8 million if the option for additional notes is fully exercised, with approximately $6.6 million allocated for capped call transactions and the remainder for general corporate purposes, including Bitcoin acquisition [5] Capped Call Transactions - Capped call transactions have been entered into to offset potential dilution from the conversion of notes, with an initial cap price of approximately $107.01 per share, representing a 75% premium over the last reported sale price on January 23, 2025 [7][8] - The option counterparties may engage in derivative transactions and purchase Semler Scientific's common stock, which could influence the market price of the stock and the notes [9][10] Company Overview - Semler Scientific, Inc. specializes in technology products and services for healthcare providers, particularly in combating chronic diseases, with its flagship product QuantaFlo® aiding in the diagnosis of cardiovascular diseases [13]

Core Insights - Semler Scientific, Inc. announced preliminary unaudited financial results for Q4 2024, highlighting significant unrealized gains from Bitcoin holdings [1][2] - The company will provide full financial results and an update on Bitcoin holdings on February 18, 2025 [1][4] Financial Performance - Preliminary revenues are estimated between $12.1 million and $12.5 million [8] - Income from operations is projected to be between $3.4 million and $3.7 million [8] - An unrealized gain from the change in fair value of Bitcoin holdings is approximately $28.9 million [8] - Cash, restricted cash, and cash equivalents as of December 31, 2024, are approximately $9.0 million [8] Bitcoin Holdings - As of January 17, 2025, Semler Scientific holds 2,321 bitcoins, acquired for a total of $191.9 million at an average price of $82,689 per bitcoin [3]

Core Viewpoint - Semler Scientific, Inc. plans to offer $75 million in convertible senior notes due 2030, with an option for an additional $15 million, to qualified institutional buyers, subject to market conditions [1][2] Group 1: Offering Details - The notes will be senior unsecured obligations, accruing interest payable semiannually, with conversion options including cash, common stock, or a combination [2] - The interest rate and other terms will be determined at the time of pricing the offering, which is subject to market conditions [2] Group 2: Use of Proceeds - A portion of the net proceeds will be used for capped call transactions, while the remainder will be allocated for general corporate purposes, including the acquisition of bitcoin [3] Group 3: Capped Call Transactions - Semler Scientific expects to enter into capped call transactions to offset potential dilution from the conversion of the notes, with adjustments based on the number of shares underlying the notes [4] - If additional notes are purchased, further capped call transactions are anticipated [4] Group 4: Market Activity - The option counterparties may engage in derivative transactions and purchase common stock, which could influence the market price of Semler Scientific's common stock and the notes [5][6] Group 5: Company Overview - Semler Scientific is focused on developing technology products for healthcare providers, with its flagship product, QuantaFlo®, aiding in the diagnosis of cardiovascular diseases [9] - The company has adopted bitcoin as its primary treasury asset, indicating a strategic investment approach [9]

Company Strategy - Semler Scientific announced a Bitcoin Treasury strategy in May 2024 and allocated its entire treasury into BTC, holding through volatile and bearish BTC price action [3] Investment Philosophy - The investment philosophy focuses on deep fundamentals, impactful narratives, and Austrian economics, with a long-horizon research emphasis on digital assets, macro, and general value opportunities [3] - Short-horizon research concentrates on options and volatility for income generation and hedging [3] Industry Focus - The company has a global, long-run macro view as the basis for investment considerations, particularly in digital assets and macro trends [3]

Company Updates - Semler Scientific, Inc. has acquired 211 bitcoins for $21.5 million between December 5, 2024, and December 15, 2024, at an average price of $101,890 per bitcoin, resulting in a total holding of 2,084 bitcoins valued at approximately $168.6 million [2][4] - The company has filed a second prospectus supplement to its S-3 Shelf to offer an additional $50 million of shares under its existing ATM offering, increasing the total amount offered to $150 million [4][22] - As of December 13, 2024, Semler Scientific has generated approximately $100 million in gross proceeds from its ATM offering [4] Bitcoin Activity - Semler Scientific's BTC Yield was reported at 67.0% from October 1, 2024, to December 15, 2024, and 92.8% from July 1, 2024, to December 15, 2024 [5][12] - The BTC Yield is used as a key performance indicator (KPI) to assess the effectiveness of the company's bitcoin acquisition strategy, which is believed to be beneficial to stockholders [6][12] Financial Metrics - The company reported its Basic Shares Outstanding as 6,987,000 on June 30, 2024, increasing to 9,267,000 by December 15, 2024 [9] - The Assumed Diluted Shares Outstanding increased from 8,086,000 on June 30, 2024, to 9,967,000 by December 15, 2024 [9][11]

Core Viewpoint - Semler Scientific, Inc. has seen a significant increase in stock value, rising over 130% in November due to its strategic pivot towards Bitcoin investments, introducing "Bitcoin Yield" as a key performance indicator [1][2] Company Overview - Semler Scientific specializes in healthcare technology solutions aimed at improving clinical efficiency for healthcare providers in the U.S. [2][3] - The company's flagship product, QuantaFlo, is a diagnostic tool for evaluating vascular health, while it also offers Insulin Insights for optimizing insulin dosing [3] Bitcoin Investment Strategy - In November, Semler increased its Bitcoin holdings by purchasing 215 Bitcoin for $17.7 million, raising its total to 1,273 Bitcoin at an average acquisition price of nearly $69,700 [4][5] - This acquisition was partially funded through an at-the-market stock offering that generated $21.5 million by selling 505,544 shares [4] Financial Performance - Semler's Q3 earnings report showed diluted EPS of 72 cents, exceeding the forecast of 48 cents, largely due to $1.1 million in unrealized gains from Bitcoin [6] - However, revenue declined to $13.5 million in Q3 from $16.3 million in the same period last year, indicating challenges in its core business [7][8] Market Position and Speculation - Semler's embrace of Bitcoin has positioned it as a speculative favorite among investors, similar to other crypto-related stocks, although it remains primarily a healthcare company [2][5] - The company's pivot to Bitcoin may be a strategy to diversify earnings and attract investor interest amid declining revenues in its core business [8] Risks and Challenges - The volatility of Bitcoin presents a risk to Semler's earnings, especially given the reliance on unrealized gains that have supported recent financial results [10] - The core business continues to face challenges, including declining revenues and limited customer base expansion [10]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___ to ___ Commission File Number: 001-36305 SEMLER SCIENTIFIC, INC. (Exact name of registrant as specified in its charter) Delaware 26-1367393 (St ...

The medical device company has made a peculiar bet on a popular cryptocurrency.Semler Scientific (SMLR -2.31%) shot up 24.5% in October, according to data from S&P Global Market Intelligence. The medical device company has started buying up Bitcoin with cash on its balance sheet, which is correlating its stock price to the popular cryptocurrency. Even after the price jump last month, the stock is still down 35.4% in the last five years as it saw slowing revenue and declining operating margins.Here's why Sem ...

Semler Scientific, Inc. (NASDAQ:SMLR) Q3 2024 Earnings Conference Call November 4, 2024 4:30 PM ET Company Participants Doug Murphy-Chutorian - Chief Executive Officer Eric Semler - Chairman Jennifer Oliva Herrington - Chief Operating Officer Renae Cormier - Chief Financial Officer Conference Call Participants Operator Good afternoon, everyone, and welcome to the Semler Scientific Third Quarter 2024 Financial Results Conference Call. All participants will be in a listen only mode. After today's prepared rem ...

Exhibit 99.1 Semler Scientific® Reports Third Quarter 2024 Financial Results and Additional Bitcoin Purchases Santa Clara, CA – November 4, 2024 – Semler Scientific, Inc. (Nasdaq: SMLR), a pioneer in developing and marketing technology products and services to healthcare providers to combat chronic diseases, today reported financial results for the third quarter ended September 30, 2024. In addition, Semler Scientific announced the purchase of an additional 47 bitcoins for an aggregate amount of $3.0 millio ...