OptimizeRx(OPRX) - 2024 Q3 - Quarterly Report

Financial Performance - Net revenue for the three months ended September 30, 2024, was $21,309 thousand, a 30.5$16,331 thousand in the same period of 2023[6] - Gross profit for the nine months ended September 30, 2024, was $22,456 thousand, compared to$18,094 thousand for the same period in 2023, reflecting a 24.5% increase[6] - The company reported a net loss of $9,124 thousand for the three months ended September 30, 2024, compared to a net loss of$2,865 thousand in the same period in 2023[6] - The company reported a net loss of $20,032 thousand for the nine months ended September 30, 2024, compared to a net loss of$13,424 thousand for the same period in 2023, representing a 49.5% increase in losses[12] - The company reported a net loss of $9,124,000 for the three months ended September 30, 2024, compared to a net loss of$6,900,000 for the previous quarter[8] - The company had a net loss of $4,008,000 for the quarter ended June 30, 2024, indicating a worsening financial performance compared to the previous quarter[8] Operating Expenses - Total operating expenses for the three months ended September 30, 2024, were$22,009 thousand, up from $13,353 thousand in the same period of 2023, representing a 64.9$992,000 for the quarter ended September 30, 2024[8] - Stock-based compensation expenses for options and restricted stock amounted to $2,604,000 for the three months ended September 30, 2024[8] Cash and Assets - Cash and cash equivalents increased to$16,126 thousand as of September 30, 2024, from $13,852 thousand at the end of 2023, marking a 16.4$165,199 thousand as of September 30, 2024, down from $183,374 thousand at the end of 2023, a decline of 9.9$26,327,000 as of September 30, 2024, down from $36,253,000 at the end of 2023, indicating a decline of 27.5$4,691 thousand for the nine months ended September 30, 2024, compared to cash used in operating activities of $982 thousand in the same period of 2023[12] - Cash and cash equivalents at the end of the period were$16,126 thousand, an increase from $9,923 thousand at the end of the same period in 2023[12] Equity and Shares - As of September 30, 2024, the total stockholders' equity for OptimizerX Corporation is$114,465,000, down from $126,553,000 at the beginning of the year, reflecting a net loss of$84,290,000[8] - The total number of common shares outstanding increased to 20,069,432 as of September 30, 2024, from 19,899,679 at the beginning of the year[8] - The weighted average number of shares outstanding for basic loss per share was 18,323,542 for the three months ended September 30, 2024, compared to 16,637,606 for the same period in 2023[6] - The accumulated deficit increased to $84,290,000 as of September 30, 2024, compared to$64,258,000 at the beginning of the year[8] Goodwill and Impairment - The company recorded a goodwill impairment of $7,489 thousand for the three months ended September 30, 2024[6] - Goodwill impairment of$7,489 thousand was recorded during the nine months ended September 30, 2024, indicating a significant decline in the company's market capitalization[12] - The company experienced a triggering event for goodwill impairment testing due to a sustained decline in stock price and market capitalization[33] - As of September 30, 2024, the carrying amount of goodwill was $70.9 million, down from$78.4 million as of December 31, 2023, with a noncash goodwill impairment charge of $7.5 million recorded[34] Debt and Liabilities - The company entered into a$40 million term loan on October 11, 2023, related to the acquisition of Medicx Health, with long-term debt net amounting to $33.3 million as of September 30, 2024[35] - The term loan bears an interest rate of 14.0$437,000, with future minimum lease payments totaling $482,000[43] Revenue Recognition - Revenue recognition policies include unbilled amounts of$6.0 million as of September 30, 2024, compared to $3.3 million at December 31, 2023[59] - The net contract balance for contracts in progress increased significantly to$23.2 million as of September 30, 2024, from $2.0 million at December 31, 2023[61] - Deferred revenue as of September 30, 2024, was$786,000, compared to $188,000 as of September 30, 2023, indicating a significant increase[65] - Revenue recognized over time for the nine months ended September 30, 2024, was$54,189,000, compared to $40,421,000 for the same period in 2023, reflecting a year-over-year increase of 34.0$817,000 reported[80] - Commitments for future minimum payments as of September 30, 2024, totaled $16.7 million, with payments due from 2024 to 2028[79] Acquisitions - The company acquired 100$23,852 thousand, while the net loss for the same period was $3,484 thousand[19]