OneMedNet Reports 24% Revenue Growth but Faces $2.1 Million Net Loss

OneMedNet Corporation reported its financial results for the three months ended March 31, 2024, revealing a total revenue of $248,000, a 24% increase from $200,000 in the same period of the previous year. The growth was primarily driven by a 20% rise in subscription revenue, which reached $201,000, and a 42% increase in web imaging revenue, which totaled $47,000. Despite the revenue growth, the company incurred a net loss of $2.1 million, a significant improvement compared to the $7.8 million loss reported in the prior year, reflecting a 73% reduction in losses.

The company's operating expenses rose to $2.0 million, up from $1.4 million in the previous year, largely due to increased general and administrative costs, which surged by 152% to $1.4 million. This increase was attributed to higher professional fees associated with being a public company, as well as increased employee salaries and benefits. Research and development expenses decreased by 24% to $445,000, while sales and marketing expenses saw a slight decline of 12% to $229,000.

In terms of operational metrics, OneMedNet's total assets increased to $750,000 as of March 31, 2024, compared to $464,000 at the end of the previous fiscal year. The company reported a total stockholders' deficit of $15.7 million, up from $13.4 million, primarily due to the accumulated deficit growing to $93.5 million. The number of shares outstanding increased to 23,850,010, reflecting the issuance of shares in connection with the company's recent business combination.

Strategically, OneMedNet underwent a significant transformation following its merger with Data Knights Acquisition Corp. on November 7, 2023. This business combination has positioned OneMedNet to enhance its market presence in the healthcare software sector, focusing on digital medical image management. The company is actively seeking additional working capital through equity or debt offerings to support its operations and growth initiatives, as its current cash balance of $174,000 is insufficient to fund operations for the next twelve months.

Looking ahead, OneMedNet's management has expressed intentions to raise additional capital to meet its operational and capital requirements. However, there is substantial uncertainty regarding the company's ability to secure such financing on favorable terms, which raises concerns about its ability to continue as a going concern. The company plans to focus on expanding its customer base and enhancing product adoption rates to improve its financial performance in the coming quarters.