Streamline Health Solutions, Inc. reported a decline in revenue for the three and six months ended July 31, 2024, with total revenues of $4,476,000 and $8,807,000, respectively, down 22% and 21% from $5,770,000 and $11,102,000 in the same periods of 2023. The decrease was attributed to client non-renewals, which accounted for a loss of $953,000 in the three-month period and $1,897,000 in the six-month period. SaaS revenue also fell, decreasing by $453,000 and $905,000 for the respective periods.

Despite the revenue drop, total operating expenses decreased to $6,691,000 for the three months and $13,271,000 for the six months, down from $8,368,000 and $16,696,000 in 2023. This reduction in expenses contributed to an improved operating loss of $(2,215,000) for the three months and $(4,464,000) for the six months, compared to $(2,598,000) and $(5,594,000) in the prior year. However, the net loss increased slightly to $(2,803,000) for the three months and $(5,542,000) for the six months, compared to $(2,515,000) and $(5,416,000) in 2023.

The company’s cash and cash equivalents rose to $3,536,000 as of July 31, 2024, from $3,190,000 at the end of January 2024. However, total assets decreased to $39,025,000 from $41,735,000, primarily due to declines in accounts receivable and non-current assets. Total liabilities increased slightly to $23,127,000, with current liabilities decreasing to $12,529,000.

Strategically, Streamline Health Solutions underwent a significant restructuring in October 2023, resulting in a workforce reduction of 26 employees, approximately 24% of its staff, incurring one-time costs of $759,000. The company also engaged in discussions with Western Alliance Bank regarding refinancing its existing debt, which totals approximately $12.4 million, with $2 million classified as a current liability.

In terms of acquisitions, the company issued shares related to the earnout liability from its acquisition of Avelead Consulting, LLC, and as of July 31, 2024, the remaining earnout liability was $577,000. The company also recorded a valuation adjustment of $159,000 related to this earnout.

Overall, while Streamline Health Solutions has made strides in reducing operating expenses, it continues to face challenges with revenue generation and maintaining compliance with financial covenants, raising concerns about its ability to continue as a going concern within the next year.