Streamline Health(STRM) - 2025 Q4 - Annual Report

Financial Performance - Total revenues for fiscal year 2024 decreased to $17,901,000, down 20.5$22,596,000 in fiscal year 2023[246] - Net loss for fiscal year 2024 was $10,159,000, an improvement from a net loss of$18,697,000 in fiscal year 2023, representing a 45.4% reduction in losses[246] - Operating expenses for fiscal year 2024 totaled $25,930,000, down 38.5$42,243,000 in fiscal year 2023[246] - The company reported a basic and diluted earnings per share of $(2.53) for fiscal year 2024, compared to$(4.96) for fiscal year 2023[246] - Operating loss for fiscal year 2024 was $8.03 million, compared to an operating loss of$19.65 million in fiscal year 2023, indicating an improvement[263] - The Company recorded a net loss of $10.16 million for fiscal year 2024, compared to a net loss of$18.7 million in fiscal year 2023[263] Assets and Liabilities - Total assets decreased from $41,735,000 in 2024 to$35,579,000 in 2025, representing a decline of approximately 14.4%[242] - Cash and cash equivalents decreased from $3,190,000 in 2024 to$2,183,000 in 2025, a reduction of about 31.5%[242] - Accounts receivable decreased from $4,237,000 in 2024 to$1,585,000 in 2025, a decline of approximately 62.6%[242] - Total current liabilities increased to $23,062,000 in January 2025, up from$13,682,000 in January 2024[244] - Total stockholders' equity decreased to $12,277,000 in January 2025, down from$18,814,000 in January 2024[244] - The Company has approximately $13.1 million in total outstanding debt as of January 31, 2025, classified as a current liability[261] Cash Flow and Financing - The Company anticipates the need for additional liquidity in the next twelve months due to insufficient cash flow from operations[260] - The Company recorded a net cash used in operating activities of$1,514,000 for fiscal year 2024, an improvement from $2,215,000 in fiscal year 2023[251] - The Company recorded a term loan principal balance of$7,500,000 as of January 31, 2025, down from $9,000,000 in the previous year, representing a decrease of approximately 16.67$1,000,000 as of January 31, 2025, compared to $1,500,000 in the previous year, indicating a reduction of 33.33$200,000 in financing costs related to the Loan Agreement, which are being amortized over the term of the loan[363] Research and Development - Research and development expenses for fiscal year 2024 were $4,629,000, a decrease of 18.8$5,704,000 in fiscal year 2023[246] - The Company recorded an impairment of long-lived assets amounting to $963,000 in fiscal year 2023[281] - Capitalized software development costs for internal-use software amounted to$4,850,000 and $5,511,000 as of January 31, 2025 and 2024, respectively[283] Impairment and Valuation - The Company recorded a goodwill impairment of$9,813,000 for fiscal 2023[328] - The Company identified indicators of impairment due to a legacy client not renewing its contract and initiated impairment testing[387][392] - The Company has established a valuation allowance for deferred tax assets when it is more likely than not that some or all of the deferred tax assets will not be realized[338] Tax Positions - The Company recorded a reserve for uncertain tax positions of $331,000 as of January 31, 2025, down from$340,000 in 2024[404] - The federal tax benefit at the statutory rate for 2024 is $2,134,000, compared to$3,887,000 in 2023, indicating a decrease of approximately 45%[400] - The total deferred tax assets increased to $21,670,000 in 2025 from$19,651,000 in 2024, primarily due to changes in allowances and deferred revenue[400] Strategic Restructuring - The company executed a Strategic Restructuring on October 16, 2023, leading to a reduction of 26 employees, approximately 24% of its workforce, incurring one-time restructuring costs of approximately $759,000[344] - The company has recognized all expenses associated with the Strategic Restructuring as of the end of fiscal 2023, including severance and professional fees[344] Revenue Recognition - The Company utilizes the portfolio approach for revenue recognition, applying the revenue model to a portfolio of contracts with similar characteristics[304] - Revenue recognized over time was$17,617,000 in fiscal year 2024, down from $22,358,000 in fiscal year 2023, indicating a decline of approximately 21$28,899,000, with an expectation to recognize approximately 47% over the next 12 months[312]