Assure Holdings Corp. reported significant financial challenges in its 10-Q filing for the quarter ending June 30, 2024. The company experienced a notable decline in total current assets, which fell to $4.6 million from $6.7 million at the end of 2023. Total assets also decreased to $5.3 million from $7.5 million, while current liabilities rose to $23.8 million, up from $22.2 million. The accumulated deficit worsened to $(74.2 million) compared to $(70.6 million) at the end of the previous fiscal year, and total shareholders’ deficit increased to $(18.6 million) from $(15.3 million).

Revenue for the three months ended June 30, 2024, was $1,000, a sharp decline from $67,000 in the same period of 2023. For the six months, revenue dropped to $10,000 from $182,000 year-over-year. Despite the revenue decline, general and administrative expenses decreased significantly to $1.2 million from $3.2 million for the three months ended June 30, 2023. The loss from operations improved to $(1.4 million) from $(3.8 million) in the prior year, while the net loss for the quarter was $(255,000), a substantial reduction from $(6.1 million) in the same period of 2023.

The company’s strategic developments included the completion of a significant asset sale on March 26, 2024, which involved the disposal of most of its clinical operations to National Neuromonitoring Services, LLC. This sale was part of a broader strategic review initiated in September 2023 to explore alternatives for maximizing shareholder value. Additionally, Assure entered into a merger agreement with Danam, which was later terminated on June 11, 2024, due to alleged misrepresentations by Danam. This termination resulted in a $1 million termination fee recorded in accrued expenses.

Assure's cash position deteriorated, with cash at the end of the period reported at $45,000, down from $123,000 at the end of 2023. The company indicated that its current cash and estimated cash from operations are insufficient to meet working capital needs, raising substantial doubt about its ability to continue as a going concern. As a result, Assure plans to seek equity or debt financing and has implemented significant cost-cutting measures.

The company also faced compliance issues with Nasdaq, leading to its common stock being delisted effective July 24, 2024, after failing to meet minimum bid price and stockholders’ equity requirements. Following the delisting, Assure's common stock began trading on the OTC Markets under the symbol "IONM."