false 0001008586 0001008586 2024-06-11 2024-06-11
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The
Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): June 11, 2024
 
Streamline Health Solutions, Inc.
(Exact name of registrant as specified in its charter)
 
Delaware
 
0-28132
 
31-1455414
(State or other jurisdiction of incorporation)
 
(Commission File Number)
 
(I.R.S. Employer Identification No.)
 
2400 Old Milton Pkwy., Box 1353
Alpharetta, GA 30009
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (888) 997-8732
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class
 
Trading Symbol
 
Name of each exchange on which registered
Common Stock, $0.01 par value
 
STRM
 
Nasdaq Capital Market
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
 
 

 
Item 2.02
Results of Operations and Financial Condition.
 
On June 11, 2024, Streamline Health Solutions, Inc. (the “Company”) issued a press release announcing first quarter fiscal 2024 financial results for the quarter ended April 30, 2024. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
 
The information contained in this Item 2.02, as well as Exhibit 99.1 referenced herein, is being “furnished” and, as such, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be incorporated by reference in any filing under the Securities Act of 1933, as amended, unless the Company expressly so incorporates such information by reference.
 
Item 9.01
Financial Statements and Exhibits.
 
(d) Exhibits.
 
EXHIBIT
NUMBER
 
DESCRIPTION
     
99.1*
 
104
 
Cover Page Interactive Data File (embedded within the Inline XBRL document)
 
*Filed herewith.
 
 

 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
STREAMLINE HEALTH SOLUTIONS, INC.
   
Date: June 11, 2024
By:
/s/ Bryant J. Reeves, III
   
Bryant J. Reeves, III
   
Chief Financial Officer
 
 

Exhibit 99.1

 

Streamline Health® Reports Fiscal First Quarter 2024 Financial Results

 

 

Net loss of ($2.7 million) during the first quarter of fiscal 2024 compared to net loss of ($2.9 million) during the first quarter of fiscal 2023

 

 

Adjusted EBITDA improved to a loss of ($0.7 million) during the first quarter of fiscal 2024 vs. a loss of ($1.3 million) during the first quarter of fiscal 2023

 

 

$15.6 million of Booked SaaS ACV as of April 30, 2024 vs. $15.0 million of booked SaaS ACV as of January 31, 2024

 

 

Company reiterated $15.5 million implemented SaaS ARR adjusted EBITDA breakeven run rate expectation

 

 

Atlanta, GA, June 11, 2024 (Globe Newswire) – Streamline Health Solutions, Inc. (Streamline or the Company) (Nasdaq: STRM), a leading provider of solutions that enable healthcare providers to proactively address revenue leakage and improve financial performance, today announced financial results for the fiscal first quarter of 2024 which ended April 30, 2024.

 

Fiscal First Quarter Financial Results

 

Total revenue for the first quarter of fiscal 2024 was $4.3 million as compared to $5.3 million during the first quarter of fiscal 2023. The change in total revenue was attributable to previously announced client non-renewals offset by successful implementation of new SaaS contracts.

 

SaaS revenue totaled $2.7 million and $3.2 million and represented 63% and 60% of total revenue during the first quarter of fiscal 2024 and 2023 respectively. As previously reported, the Company had a SaaS contract which did not renew at the end of its 2023 fiscal year. On a pro forma basis, excluding the revenue recognized from that contract SaaS revenue grew 22% in the first quarter of fiscal 2024 compared to the first quarter of fiscal 2023.

 

Net loss for the first quarter of fiscal 2024 was ($2.7 million) compared to a net loss of ($2.9 million) during the first quarter of fiscal 2023. The improved net loss despite lower revenue resulted from cost savings achieved through the strategic restructuring executed during fiscal 2023 offset by higher interest expense and non-cash valuation adjustments.

 

Cash and cash equivalents as of April 30, 2024 was $4.0 million compared to $3.2 million as of January 31, 2024. The Company had access to $2.0 million of liquidity through its revolving credit facility as of April 30, 2024, compared to $0.5 million as of January 31, 2024. During the first quarter of fiscal 2024 the Company closed a private placement of common stock, unsecured promissory notes and warrants resulting in aggregate gross proceeds of approximately $4.5 million.

 

Adjusted EBITDA for the first quarter of fiscal 2024 was ($0.7 million) compared to ($1.3 million) during the first quarter of fiscal 2023. The significant improvement of Adjusted EBITDA is the result of the Company’s focus on the growth of its SaaS revenue solutions as well as significant cost savings achieved through the previously announced strategic restructuring.

 

As of April 30, 2024, the Company’s total Booked SaaS Annual Contract Value (“ACV”) was $15.6 million compared to $15.0 million as of January 31, 2024. $11.6 million of the Booked SaaS ACV was implemented as of April 30, 2024 as compared to $11.1 million as of January 31, 2024. Subsequent to the end of the fiscal quarter, the Company successfully booked additional contracts and implemented existing contracts. As a result, as of June 11, 2024 booked SaaS ACV totaled $15.9 million and $13.1 million was implemented.

 

Booked SaaS ACV represents the annualized value of all executed SaaS contracts, including contracts that have not been fully implemented as of the measurement date, assuming any contract that expires during the twelve months following the measurement date is renewed on its existing terms unless the Company has knowledge of the non-renewal.

 

The Company reiterated that it believes its adjusted EBITDA breakeven run rate is $15.5 million of SaaS ARR and that it expects to achieve this run rate during the second half of fiscal 2024. Due to the continued unpredictability of timing related to the closing of new contracts, the Company has not provided more specific guidance related to the timing of bookings.

 

Management Commentary

 

“As a result of executing contract implementations while expanding our footprint with new and existing clients we expect to achieve ongoing adjusted EBITDA profitability during the second half of this fiscal year,” stated Ben Stilwill, President and Chief Executive Officer, of the Company. “Furthermore, we continue to improve the impact of our existing solutions for clients by incorporating novel AI techniques furthering our mission to ensure our nation’s health systems are paid for all of the care they provide.”

 

Conference Call

 

The Company will conduct a conference call on Wednesday, June 12, 2024, at 9:00 AM ET to review results and provide a corporate update. Interested parties can access the call by joining the live webcast: click here to register. You can also join by phone by dialing 877-407-8291.

 

A replay of the conference call will be available from Wednesday, June 12, 2024 at 12:00 PM ET to Wednesday, June 19, 2024 at 12:00 PM ET by dialing 877-660-6853 or 201-612-7415 with conference ID 13746953. An online replay of the presentation will also be available for six months following the presentation in the Investor Relations section of the Streamline website, www.streamlinehealth.net.

 

About Streamline

 

Streamline Health Solutions, Inc. (Nasdaq: STRM) enables healthcare organizations to proactively address revenue leakage and improve financial performance. We deliver integrated solutions, technology-enabled services and analytics that drive compliant revenue leading to improved financial performance across the enterprise. For more information, visit www.streamlinehealth.net.

 

Non-GAAP Financial Measures

 

Streamline reports its financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). Streamline’s management also evaluates and makes operating decisions using various other measures. One such measure is adjusted EBITDA, which is a non-GAAP financial measure. Streamline’s management believes that this measure provides useful supplemental information regarding the performance of Streamline’s business operations.

 

Streamline defines “adjusted EBITDA” as net earnings (loss) plus interest expense, tax expense, depreciation and amortization expense of tangible and intangible assets, share-based compensation expense, significant non-recurring operating expenses, restructuring expenses, impairment of goodwill and long-lived assets and transactional related expenses including: gains and losses on debt and equity conversions, associate severances and related alignment expenses, associate inducements, and professional and advisory fees. A table reconciling this measure to “net loss,” to the extent relevant items were recognized in the periods covered, is included in this press release.

 

Booked SaaS ACV represents the annualized value of all executed SaaS contracts, including contracts that have not been fully implemented, as of the measurement date, assuming any contract that expires during the twelve months following the measurement date is renewed on its existing terms unless the Company has knowledge of the non-renewal. Booked SaaS ACV should be viewed independently of revenue and does not represent revenue calculated in accordance with GAAP on an annualized basis, as it is an operating metric that can be impacted by contract execution start and end dates and renewal rates. Booked SaaS ACV is not intended to be a replacement for, or forecast of, revenue. There is no GAAP measure comparable to Booked SaaS ACV.

 

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

 

Statements made by Streamline Health Solutions, Inc. that are not historical facts are forward-looking statements that are subject to certain risks, uncertainties and important factors that could cause actual results to differ materially from those reflected in the forward-looking statements included herein. Forward-looking statements contained in this press release include, without limitation, statements regarding the Company’s growth prospects, anticipated bookings, recognition of revenue from contracts included in Booked SaaS ACV,  anticipated cost savings from previously announced strategic restructuring, expected improved implementation timelines and lower expenses for our clients, industry trends and market growth, adjusted EBITDA, success of future products and related expectations and assumptions. These risks and uncertainties include, but are not limited to, the timing of contract negotiations and execution of contracts and the related timing of the revenue recognition related thereto, the potential cancellation of existing contracts or clients not completing projects included in the backlog and Booked SaaS ACV, achievement of a breakeven SaaS ARR run rate, the impact of competitive solutions and pricing, solution demand and market acceptance, new solution development and enhancement of current solutions, key strategic alliances with vendors and channel partners that resell the Company’s solutions, the ability of the Company to generate cash from operations, the availability of additional debt and equity financing to fund the Company’s ongoing operations, the ability of the Company to control costs, the effects of cost-containment measures implemented by the Company, availability of solutions from third party vendors, the healthcare regulatory environment, potential changes in legislation, regulation and government funding affecting the healthcare industry, healthcare information systems budgets, availability of healthcare information systems trained personnel for implementation of new systems, as well as maintenance of legacy systems, fluctuations in operating results, effects of critical accounting policies and judgments, changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other similar entities, changes in economic, business and market conditions impacting the healthcare industry generally and the markets in which the Company operates and nationally, the Company’s ability to maintain compliance with the terms of its credit facilities, and other risks detailed from time to time in the Streamline Health Solutions, Inc. filings with the U. S. Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s analysis only as of the date hereof. The Company undertakes no obligation to publicly release the results of any revision to these forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as required by law.

 

Company Contact

 

Jacob Goldberger
Vice President, Finance
303-887-9625
jacob.goldberger@streamlinehealth.net

 

 

 

 

 

 

STREAMLINE HEALTH SOLUTIONS, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(rounded to the nearest thousand dollars, except share and per share information)

 

 

Three Months Ended April 30,

 

2024

 

2023

Revenues:

         

Software as a service

$

2,723,000

 

 $

3,175,000

Maintenance and support

 

890,000

   

1,157,000

Professional fees and licenses

 

717,000

   

1,000,000

Total revenues

 

4,330,000

   

5,332,000

Operating expenses

         

Cost of software as a service

 

1,348,000

   

1,589,000

Cost of maintenance and support

 

42,000

   

89,000

Cost of professional fees and licenses

 

887,000

   

1,108,000

Selling, general and administrative expense

 

3,192,000

   

3,841,000

Research and development

 

1,111,000

   

1,701,000

Total operating expenses

 

6,580,000

   

8,328,000

Operating loss

 

 (2,250,000)

   

 (2,996,000)

Other (expense)/income:

         

Interest expense

 

 (465,000)

   

 (248,000)

Valuation adjustments

 

 (24,000)

   

364,000

Other

 

                   —

   

32,000

Loss before income taxes

 

 (2,739,000)

   

 (2,848,000)

Income tax benefit (expense)

 

                   —

   

 (53,000)

Net loss

$

    (2,739,000)

 

 $

    (2,901,000)

Basic and Diluted Earnings Per Share:

         

Net loss per share, basic and diluted

$

 (0.05)

 

 $

 (0.05)

Weighted average number of common shares - basic and diluted

 

58,224,090

   

55,970,880

 

 

 

 

 

 

STREAMLINE HEALTH SOLUTIONS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(rounded to the nearest thousand dollars, except share and per share information)

 

 

 

 

April 30, 2024

 

January 31, 2024

 

(Unaudited)

   

ASSETS

         

Current assets:

         

Cash and cash equivalents

$

3,979,000

  $

3,190,000

Accounts receivable, net of allowance for credit losses of $117,000 and $86,000, respectively

 

4,706,000

    4,237,000

Contract receivables

 

294,000

    780,000

Prepaid and other current assets

 

722,000

    629,000

Total current assets

 

9,701,000

    8,836,000

Non-current assets:

         

Property and equipment, net of accumulated amortization of $304,000 and $291,000 respectively

 

76,000

    88,000

Capitalized software development costs, net of accumulated amortization of $8,396,000 and $7,960,000, respectively

 

5,624,000

    5,798,000

Intangible assets, net of accumulated amortization of $4,428,000 and $4,019,000, respectively

 

11,662,000

    12,071,000

Goodwill

 

13,276,000

    13,276,000

Other

 

1,386,000

    1,666,000

Total non-current assets

 

32,024,000

    32,899,000

Total assets

$

41,725,000

  $

$41,735,000

           

LIABILITIES AND STOCKHOLDERS EQUITY

         

Current liabilities:

         

Accounts payable

$

1,120,000  

$

1,253,000

Accrued expenses

  1,777,000    

2,023,000

Current portion of term loan

  1,750,000    

1,500,000

Deferred revenues

  7,351,000    

7,112,000

Acquisition earnout liability

  817,000    

1,794,000

Total current liabilities

  12,815,000    

13,682,000

Non-current liabilities:

         

Term loan, net of current portion and deferred financing costs

  7,089,000    

7,566,000

Line of credit

     

1,500,000

Notes payable, net of current portion and deferred financing costs

  3,587,000    

Warrants - common stock

  746,000    

Deferred revenues, less current portion

  185,000    

173,000

Total non-current liabilities

  11,607,000    

9,239,000

Total liabilities

  24,422,000    

22,921,000

Commitments and contingencies  Note 8

         

Stockholders equity:

         

Common stock, $0.01 par value per share, 85,000,000 shares authorized; 61,825,587 and 58,945,498 shares issued and outstanding, respectively

  617,000    

590,000

Additional paid in capital

  135,124,000    

133,923,000

Accumulated deficit

 

(118,438,000)

   

(115,699,000

Total stockholders’ equity

  17,303,000    

18,814,000

Total liabilities and stockholders’ equity

$

41,725,000  

$

41,735,000

 

 

 

 

 

 

 

 

STREAMLINE HEALTH SOLUTIONS, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(rounded to the nearest thousand dollars)

 

   

Three Months Ended April 30,

   

2024

 

2023

Net loss

 

$

(2,739,000)

 

$

(2,901,000)

             

Adjustments to reconcile net loss to net cash used in operating activities:

           

Depreciation and amortization

   

1,120,000

   

1,059,000

Accrued interest expense - notes payable

   

152,000

   

Valuation adjustments

   

24,000

   

(364,000)

Benefit for deferred income taxes

   

   

39,000

Share-based compensation expense

   

499,000

   

572,000

Changes in assets and liabilities:

           

Accounts and contract receivables

   

17,000

   

3,900,000

Other assets

   

(100,000)

   

(15,000)

Accounts payable

   

(161,000)

   

(327,000)

Accrued expenses and other liabilities

   

(262,000)

   

(795,000)

Deferred revenue

   

251,000

   

(1,042,000)

Net cash (used in) provided by operating activities

   

(1,199,000)

   

126,000

Cash flows from investing activities:

           

Purchases of property and equipment

   

   

(29,000)

Capitalization of software development costs

   

(232,000)

   

(404,000)

Net cash (used in) investing activities

   

(232,000)

   

(433,000)

Cash flows from financing activities:

           

Repayment of bank term loan

   

(250,000)

   

(125,000)

Repayment of line of credit

   

(1,500,000)

   

Proceeds from issuance of common stock

   

100,000

   

Proceeds from notes payable

   

4,400,000

   

Payments of acquisition earnout liabilities

   

(447,000)

   

Payments for deferred financing costs

   

(16,000)

   

Payments related to settlement of employee share-based awards

   

(67,000)

   

(179,000)

Net cash (used in) provided by financing activities

   

2,220,000

   

(304,000)

Net (decrease) increase in cash and cash equivalents

   

789,000

   

(611,000)

Cash and cash equivalents at beginning of period

   

3,190,000

   

6,598,000

Cash and cash equivalents at end of period

 

$

3,979,000

 

$

5,987,000

 

 

 

 

 

STREAMLINE HEALTH SOLUTIONS, INC.

RECONCILIATION OF NET LOSS TO NON-GAAP ADJUSTED EBITDA

(Unaudited, rounded to the nearest thousand dollars)

   

Three Months Ended

In thousands, except per share data

 

April 30, 2024

 

April 30, 2023

Adjusted EBITDA Reconciliation

           

Net Loss

 

$

(2,739)

 

$

(2,901)

Interest expense

   

465

   

248

Income tax expense

   

   

53

Depreciation and amortization

   

1,017

   

1,031

EBITDA

 

$

(1,257)

 

$

(1,569)

Share-based compensation expense

   

499

   

572

Non-cash valuation adjustments

   

24

   

(364)

Acquisition-related costs, severance, and transaction-related bonuses

   

31

   

57

Other non-recurring charges

   

   

(33)

Adjusted EBITDA

 

$

(703)

 

$

(1,337)

 

 

Source: Streamline Health Solutions, Inc.

 
v3.24.1.1.u2
Document And Entity Information
Jun. 11, 2024
Document Information [Line Items]  
Entity, Registrant Name Streamline Health Solutions, Inc.
Document, Type 8-K
Document, Period End Date Jun. 11, 2024
Entity, Incorporation, State or Country Code DE
Entity, File Number 0-28132
Entity, Tax Identification Number 31-1455414
Entity, Address, Address Line One 2400 Old Milton Pkwy., Box 1353
Entity, Address, City or Town Alpharetta
Entity, Address, State or Province GA
Entity, Address, Postal Zip Code 30009
City Area Code 888
Local Phone Number 997-8732
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock
Trading Symbol STRM
Security Exchange Name NASDAQ
Entity, Emerging Growth Company false
Amendment Flag false
Entity, Central Index Key 0001008586

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