Marpai, Inc., a technology-driven healthcare third-party administrator, reported a decrease in revenue for the quarter ended September 30, 2024, with total revenue falling to $7.008 million from $8.729 million in the same period last year, marking a 19.7% decline. The company's net loss improved, however, from $7.296 million to $3.560 million, a 51.2% reduction. The decrease in revenue was attributed to customer turnover, while the reduction in net loss was due to cost-saving measures and the alignment of two TPA companies into one. Operating expenses also saw a significant decrease, with general and administrative expenses dropping by 43.6% to $2.813 million, and sales and marketing expenses reducing by 81.3% to $345 thousand. The company also reported an impairment charge of $7.588 million for goodwill and intangible assets. Marpai's...Show More

Marpai, Inc., a technology-driven healthcare third-party administrator, reported a decrease in revenue for the quarter ended September 30, 2024, with total revenue falling to $7.008 million from $8.729 million in the same period last year, marking a 19.7% decline. The company's net loss improved, however, from $7.296 million to $3.560 million, a 51.2% reduction. The decrease in revenue was attributed to customer turnover, while the reduction in net loss was due to cost-saving measures and the alignment of two TPA companies into one. Operating expenses also saw a significant decrease, with general and administrative expenses dropping by 43.6% to $2.813 million, and sales and marketing expenses reducing by 81.3% to $345 thousand. The company also reported an impairment charge of $7.588 million for goodwill and intangible assets. Marpai's liquidity remains a concern, with an accumulated deficit of approximately $97.7 million and negative working capital of approximately $3.3 million. The company is exploring strategic alternatives to maximize shareholder value, which may include a sale, merger, or strategic investment financing. Marpai's financial performance is also impacted by its reliance on a major customer, which accounted for 14.6% of total revenue for the quarter. The company's cash flows from operations were negative at $10.251 million, a decrease from the previous year's $15.324 million. Marpai's management has acknowledged substantial doubt about the company's ability to continue as a going concern and is seeking additional funding to support ongoing operations.