• Delisting or suspension action stayed pending the issuance of a final decision

NEW YORK, Dec. 1, 2023 /PRNewswire/ -- Marpai, Inc. ("Marpai" or the "Company") (Nasdaq: MRAI), an independent national Third-Party Administrator (TPA) company transforming the $22 billion TPA market supporting self-funded employer health plans, today announced that it has requested and been granted a hearing before the Nasdaq Listing Qualifications Panel ("Panel") to appeal the determination by the Listing Qualifications Department of The Nasdaq Stock Market (the "Staff") and request a further extension of time and present its plan to regain compliance with Nasdaq Listing 5550(b)(2). The hearing is scheduled for March 24, 2024.

The requested appeal stays any delisting or suspension action pending the issuance of a final decision by the Panel. The Panel has broad discretionary public interest authority, which includes the discretion to grant the Company up to an additional 180 calendar days from November 28, 2023, to regain compliance. The Panel can also exercise that authority to apply additional or more stringent criteria for the continued listing of the Company's common stock or suspend or delist securities. Ultimately, there is no guarantee that the Panel will grant an extension of the compliance period.

About Marpai, Inc.

Marpai, Inc. (Nasdaq: MRAI) is a leading, national TPA (Third Party Administrator) company bringing value-oriented health plan services to employers that directly pay for employee health benefits. Primarily competing in the $22 billion TPA sector serving self-funded employer health plans representing over $1 trillion in annual claims. Marpai works to deliver the healthiest member population for the health plan budget. Operating nationwide, Marpai offers access to leading provider networks including Aetna and Cigna and all TPA services. For more information, visit www.marpaihealth.com, the content of which is not incorporated by reference into this press release.

Forward-Looking Statement Disclaimer

This press release contains forward-looking statements, as that term is defined in the Private Litigation Reform Act of 1995, that involve significant risks and uncertainties. Forward-looking statements can be identified through the use of words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," "guidance," "may," "can," "could", "will", "potential", "should," "goal" and variations of these words or similar expressions. For example, the Company is using forward looking statements when it discusses its belief that the third quarter results reflect continued momentum towards sustainable profitability. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect Marpai's current expectations and speak only as of the date of this release. Actual results may differ materially from Marpai's current expectations depending upon a number of factors. These factors include, among others, adverse changes in general economic and market conditions, competitive factors including but not limited to pricing pressures and new product introductions, uncertainty of customer acceptance of new product offerings and market changes, risks associated with managing the growth of the business. Except as required by law, Marpai does not undertake any responsibility to revise or update any forward-looking statements whether as a result of new information, future events or otherwise.

More detailed information about Marpai and the risk factors that may affect the realization of forward-looking statements is set forth in Marpai's filings with the Securities and Exchange Commission. Investors and security holders are urged to read these documents free of charge on the SEC's web site at http://www.sec.gov.

 

MARPAI, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands,, except share and per share data)
(UNAUDITED)




September 30, 2023


December 31, 2022



(Unaudited)



ASSETS:





Current assets:





Cash and cash equivalents


$                    3,018


$                       13,764

Restricted cash


11,234


9,353

Accounts receivable, net of allowance for credit  

losses of $23,458 and $23,458


977


1,438

Unbilled receivable


595


350

Prepaid expenses and other current assets


961


1,602

Other receivables


32


31

Total current assets


16,817


26,538






Property and equipment, net


663


1,506

Capitalized software, net


2,743


4,589

Operating lease right-of-use assets


2,520


3,842

Goodwill


6,035


5,837

Intangible assets, net


5,502


6,323

Security deposits


1,309


1,293

Other long-term asset


22


22

Total assets


$                  35,611


$                       49,950

LIABILITIES AND STOCKHOLDERS'  (DEFICIT) EQUITY





Current liabilities:





Accounts payable


$                    3,101


$                         1,458

Accrued expenses


4,660


5,275

Accrued fiduciary obligations


9,878


9,024

Deferred revenue


1,261


289

Current portion of operating lease liabilities


600


1,311

Other short-term liabilities


947


Due to related party



3

Total current liabilities


20,447


17,360






Other long-term liabilities


19,113


20,203

Operating lease liabilities, net of current portion


3,813


4,772

Deferred tax liabilities


1,480


1,480

Total liabilities


44,853


43,815

COMMITMENTS AND CONTINGENCIES





STOCKHOLDERS' (DEFICIT) EQUITY





Common stock, $0.0001 par value, 227,791,050
shares authorized; 7,810,625 and 5,319,758 issued and
outstanding at September 30, 2023 and December 31,
2022, respectively (1)


1


1

Additional paid-in capital


62,476


54,128

Accumulated deficit


(71,719)


(47,993)

Total stockholders' (deficit) equity


(9,242)


6,135

Total liabilities and stockholders' (deficit) equity


$                  35,611


$                       49,950







(1)  Reflects 1-for-4 reverse stock split that became effective June 29, 2023. See Note 1 to the unaudited condensed consolidated financial statements.

 

MARPAI, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except share and per share data)
(Unaudited)




Three Months Ended



September 30, 2023


September 30, 2022

Revenue


$                  8,729


$                        4,938

Costs and expenses





Cost of revenue (exclusive of depreciation and amortization

 shown separately below)


5,691


3,626

General and administrative


4,986


2,718

Sales and marketing


1,842


1,054

Information technology


1,269


1,538

Research and development


267


782

Depreciation and amortization


927


842

Loss on disposal of assets


7


Facilities


768


193

Total costs and expenses


15,757


10,753

Operating loss


(7,028)


(5,815)

Other income (expenses)





Other income


130


56

Interest expense, net


(384)


(3)

Foreign exchange (loss) gain


(14)


(19)

Loss before provision for income taxes


(7,296)


(5,781)

Income tax expense



Net loss


$               (7,296)


$                     (5,781)

Net loss per share, basic & fully diluted (1)


$                 (0.98)


$                       (1.14)

Weighted average common shares outstanding, basic and
   diluted (1)


7,479,401


5,087,164


(1)  Reflects 1-for-4 reverse stock split that became effective June 29, 2023. See Note 1 to the unaudited condensed consolidated financial statements.

 

MARPAI, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except share and per share data)
(Unaudited)





Nine Months Ended




September 30, 2023


September 30, 2022

Revenue



$     28,448


$     16,713

Costs and expenses






Cost of revenue (exclusive of depreciation and

amortization shown separately below)



18,530


12,324

General and administrative



15,938


7,940

Sales and marketing



5,494


4,830

Information technology



4,775


3,862

Research and development



1,291


2,684

Depreciation and amortization



2,974


2,444

Loss on disposal of assets



350


60

Facilities



1,918


586

Total costs and expenses



51,270


34,730

Operating loss



(22,822)


(18,017)

Other income (expenses)






Other income



231


95

Interest expense, net



(1,102)


(7)

Foreign exchange (loss) gain



(32)


(5)

Loss before provision for income taxes



(23,725)


(17,934)

Income tax expense




Net loss



$   (23,725)


$   (17,934)

Net loss per share, basic & fully diluted (1)



$       (3.62)


$       (3.58)

Weighted average common shares outstanding, basic and
   diluted (1)



6,552,575


5,004,779


(1)  Reflects 1-for-4 reverse stock split that became effective June 29, 2023. See Note 1 to the unaudited condensed consolidated financial statements.

 

MARPAI, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, except share and per share data)
(Unaudited)




Nine Months Ended




September 30, 2023


September 30, 2022

Cash flows from operating activities:





Net loss


$             (23,725)


$                   (17,934)

Adjustments to reconcile net loss to net cash used in

operating activities:





Depreciation and amortization


2,974


2,444

Loss on disposal of assets


350


60

Share-based compensation


1,837


2,433

Shares issued to vendors in exchange for services


79


31

Amortization of right-of-use asset


1,289


517

Gain on termination of lease


33


Non-cash interest


1,204


Changes in operating assets and liabilities:





Accounts receivable and unbilled receivable


641


16

Prepaid expense and other assets


216


377

Other receivables


(2)


35

Security deposit


(16)


Accounts payable


336


(433)

Accrued expenses


(693)


(436)

Accrued fiduciary obligations


853


(1,642)

Operating lease liabilities


(1,670)


(512)

Due To related party


(3)


Other liabilities


973


(295)

Net cash used in operating activities


(15,324)


(15,339)

Cash flows from investing activities:





Capitalization of software development costs



(810)

Disposal of property and equipment


27


Purchase of property and equipment



(70)

Net cash provided by (used in) investing activities


27


(880)

Cash flows from financing activities:





Proceeds from stock options exercises


0


Proceeds from issuance of common stock in a public

offering, net


6,432


Net cash provided by financing activities


6,432







Net decrease in cash, cash equivalents and restricted cash


(8,865)


(16,219)






Cash, cash equivalents and restricted cash at beginning of period


23,117


25,934

Cash, cash equivalents and restricted cash at end of period


$                14,252


$                        9,715






Reconciliation of cash, cash equivalents, and restricted cash
reported in the condensed consolidated balance sheet





Cash and cash equivalents


$                  3,018


$                        4,748

Restricted cash


11,234


4,966

Total cash, cash equivalents and restricted cash shown in the
condensed consolidated statement of cash flows


$                14,252


$                        9,714

Supplemental disclosure of non-cash activity





Measurement period adjustment to Goodwill


$                        198


$                                —







 

(PRNewsfoto/Marpai)

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SOURCE Marpai

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