iCAD Reports $7.6 Million Revenue in Q2 2022, Net Loss of $3.1 Million

iCAD, Inc. reported a total revenue of $7.6 million for the second quarter of 2022, reflecting a decrease of 3.2% compared to $7.8 million in the same period of 2021. The decline was primarily driven by a 24.7% drop in revenue from the Therapy segment, which fell to $2.3 million, while the Detection segment saw a 10.4% increase, reaching $5.3 million. For the first half of 2022, total revenue was $15.1 million, down 8.3% from $16.5 million in the first half of 2021. The company reported a net loss of $3.1 million for the second quarter, slightly improved from a loss of $3.3 million in the prior year, and a total net loss of $6.7 million for the first half of 2022, compared to $4.9 million in the same period of 2021.

The company’s financial position showed a decrease in total assets, which fell to $58.4 million as of June 30, 2022, down from $62.2 million at the end of 2021. Current assets also decreased to $45.3 million, primarily due to a reduction in cash and cash equivalents, which stood at $27.2 million, down from $34.3 million at the end of 2021. iCAD's total liabilities increased to $17.4 million, compared to $15.7 million at the end of 2021, largely due to an increase in deferred revenue. The company’s stockholders’ equity decreased to $41.0 million from $46.5 million, reflecting the net losses incurred during the period.

Operationally, iCAD has seen a shift in customer demand towards subscription licenses, which are recognized over time, potentially impacting short-term revenue recognition. The company noted that the COVID-19 pandemic continues to affect its operations, particularly in the Therapy segment, where product and service revenues were adversely impacted. The company also reported an increase in its allowance for doubtful accounts, reflecting concerns over customer cash flows due to ongoing economic uncertainties.

Looking ahead, iCAD remains cautious about the potential impacts of the COVID-19 pandemic and geopolitical tensions, particularly in Eastern Europe, on its business operations and financial performance. The company believes its current liquidity, bolstered by cash reserves, is sufficient to sustain operations for at least the next 12 months. However, it acknowledges that any resurgence of the pandemic or significant changes in market conditions could necessitate additional financing, which may not be guaranteed. The company continues to monitor its liquidity closely and is focused on adapting to changing market dynamics.