Marpai, Inc. reported its financial results for the three and nine months ended September 30, 2024, revealing significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the three months ended September 30, 2024, Marpai generated revenue of $7,008,000, a decrease of 19.7% from $8,729,000 in the same period of 2023. For the nine-month period, revenue totaled $21,582,000, down 24.1% from $28,448,000 in 2023. The decline in revenue was primarily attributed to reduced income from third-party administration (TPA) services, which fell from $8,639,000 to $6,984,000 for the quarter and from $28,213,000 to $21,504,000 for the nine months.

Despite the revenue decline, total costs and expenses also decreased significantly, with Q3 2024 expenses at $10,068,000 compared to $15,758,000 in Q3 2023, and nine-month expenses dropping from $51,270,000 to $40,981,000. This led to an operating loss of $(3,060,000) for Q3 2024, an improvement of 56.5% from $(7,029,000) in Q3 2023. The nine-month operating loss also improved to $(19,399,000) from $(22,822,000) in the prior year.

Net losses showed a similar trend, with a net loss of $(3,560,000) for Q3 2024, down from $(7,296,000) in Q3 2023, and a nine-month net loss of $(20,932,000), improved from $(23,725,000) in the previous year. The net loss per share for Q3 2024 was $(0.30), a significant improvement from $(0.98) in Q3 2023.

Marpai's financial position as of September 30, 2024, showed total current assets of $14,886,000, down from $17,085,000 at the end of 2023, and total assets decreased to $19,607,000 from $31,680,000. The accumulated deficit increased to $(97,678,000) from $(76,746,000) at the end of 2023, while total stockholders’ deficit rose to $(27,558,000) from $(13,438,000).

Strategically, Marpai has been active in capital raising efforts, issuing convertible debentures and common stock to finance operations. The company plans to continue raising capital through equity sales and debt issuance, with potential dilution to existing shareholders. Additionally, Marpai sold certain assets related to its consumer-directed benefits business for $1 million in cash and is exploring strategic alternatives to maximize shareholder value, including potential mergers or sales.

The company has also faced challenges, including a transition from Nasdaq to the OTCQX market, which has resulted in reduced trading activity. Management has expressed substantial doubt about the company's ability to continue as a going concern over the next twelve months due to liquidity issues.