SANTA
CLARA, Calif., Nov. 4, 2024
/PRNewswire/ -- Semler Scientific, Inc. (Nasdaq: SMLR), a pioneer
in developing and marketing technology products and services to
healthcare providers to combat chronic diseases, today reported
financial results for the third quarter ended September 30, 2024. In addition, Semler
Scientific announced the purchase of an additional 47 bitcoins for
an aggregate amount of $3.0 million
from operating cash flow since August 26,
2024. Semler Scientific now holds 1,058 bitcoins for a total
purchase amount of $71.0 million as
of November 4, 2024.
"We are pleased to report strong performance from our healthcare
business with income from operations of $5.1
million in the third quarter," said Doug Murphy-Chutorian, MD, chief executive
officer of Semler Scientific. "We remain laser focused on acquiring
and holding bitcoin, while
supporting innovation and growth in our healthcare business."
"We are capitalizing on the opportunity to maximize stakeholder
value by accumulating bitcoin," said
Eric Semler, chairman of Semler
Scientific. "We plan to continue to purchase bitcoin with cash from operations and with cash proceeds
from our sales under our ATM program. In addition, we are exploring
additional financing opportunities that will enable us to acquire
even more bitcoin."
FINANCIAL RESULTS
For the third quarter ended September 30,
2024, compared to the corresponding period of 2023, Semler
Scientific reported:
- Revenues of $13.5 million, a
decrease of $2.8 million, or 17%,
compared to $16.3 million.
- Cost of revenues of $1.2 million,
an increase of $0.1 million, or 4%,
compared to $1.1 million.
- Total operating expenses, which include cost of revenues, of
$8.4 million, a decrease of
$1.6 million, or 16%, compared to
$10.0 million.
- Income from operations of $5.1
million, a decrease of $1.2
million, or 20%, compared to $6.3
million.
- Pre-tax income of $6.4 million
(which includes an unrealized gain from the change in fair value of
Semler Scientific's bitcoin holdings
of $1.1 million), a decrease of
$0.6 million, or 9%, compared to
$7.0 million.
- Income tax expense of $0.8
million, or an effective tax rate of 12%, compared to
$1.5 million, or an effective tax
rate of 21%.
- Net income of $5.6 million or
$0.80 per basic share and
$0.72 per diluted share, an increase
of $0.1 million, or 2%, compared to
net income of $5.5 million, or
$0.82 per basic share and
$0.71 per diluted share.
Semler Scientific's two largest customers (including their
affiliates) comprised 44% and 29% of third quarter 2024 revenues,
respectively, and its three largest customers comprised 36%,
28% and 11% of third quarter 2023 revenues, respectively.
BITCOIN HOLDINGS
As of September 30, 2024, Semler
Scientific held 1,018 bitcoins with a fair value of $64.5 million, which reflects a cumulative
reduction in fair value of $3.9
million. During the third quarter ended September 30, 2024, Semler Scientific purchased
141 bitcoins for an aggregate cost of $8.4
million.
Subsequently through November 4,
2024, Semler Scientific purchased an additional 40 bitcoins
for an aggregate cost of $2.6
million. Semler Scientific's total holdings as of
November 4, 2024 are 1,058 bitcoins
for an aggregate purchase amount of $71.0
million from operating cashflow. All purchase amounts
include fees and expenses.
ATM Update
As previously disclosed in Semler Scientific's registration
statement on Form S-3 that became effective on August 13, 2024, Semler Scientific entered into a
Controlled Equity Offeringsm Sales Agreement (the
Sales Agreement) with Cantor Fitzgerald & Co., pursuant to
which the Company may issue and sell from time to time up to
$50.0 million of its common stock in
an at-the-market (ATM) offering. As of September 30, 2024, Semler Scientific had sold an
aggregate of 86,734 shares under the Sales Agreement for aggregate
net proceeds (less sales commissions) of approximately $2.5 million.
Notice of Conference Call
Semler Scientific will host a conference call today at
4:30 p.m. ET. The call will address
results of the third quarter ended September
30, 2024, as well as provide a business update on Semler
Scientific's strategies for the near-term future. Questions
can be submitted prior to the start of the call to
ir@semlerscientific.com.
Participants are encouraged to pre-register for the conference
call using the following link:
https://dpregister.com/sreg/10193272/fda6de9798. Callers
who pre-register will be given a conference passcode and unique PIN
to gain immediate access to the call and bypass the live operator.
Participants may pre-register at any time, including up to and
after the call start time. Those without internet access or who are
unable to pre-register may dial in by calling:
Domestic callers: (833) 816–1161
International callers: (412) 317–0717
Please specify to the operator that you would like to join the
"Semler Scientific Call." The conference call will be archived on
Semler Scientific's website at www.semlerscientific.com.
|
Semler
Scientific, Inc.
Condensed Statements
of Income
Unaudited
(In thousands of
U.S. Dollars, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended September 30,
|
|
For the nine months
ended September 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
13,512
|
|
$
|
16,316
|
|
$
|
43,881
|
|
$
|
53,127
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
1,156
|
|
|
1,111
|
|
|
3,657
|
|
|
3,599
|
|
Engineering and product
development
|
|
|
1,186
|
|
|
1,174
|
|
|
3,764
|
|
|
4,566
|
|
Sales and
marketing
|
|
|
2,976
|
|
|
3,423
|
|
|
10,107
|
|
|
13,601
|
|
General and
administrative
|
|
|
3,129
|
|
|
3,710
|
|
|
8,962
|
|
|
11,028
|
|
Strategic
streamlining
|
|
|
—
|
|
|
599
|
|
|
—
|
|
|
599
|
|
Total operating
expenses
|
|
|
8,447
|
|
|
10,017
|
|
|
26,490
|
|
|
33,393
|
|
Income from
operations
|
|
|
5,065
|
|
|
6,299
|
|
|
17,391
|
|
|
19,734
|
|
Interest and dividend
income
|
|
|
168
|
|
|
692
|
|
|
1,699
|
|
|
1,772
|
|
Change in fair value of
notes held for investment
|
|
|
—
|
|
|
—
|
|
|
128
|
|
|
(217)
|
|
Change in fair value of
digital assets
|
|
|
1,137
|
|
|
—
|
|
|
(3,918)
|
|
|
—
|
|
Other income
(expense)
|
|
|
5
|
|
|
(3)
|
|
|
8
|
|
|
(3)
|
|
Other income
(expense), net
|
|
|
1,310
|
|
|
689
|
|
|
(2,083)
|
|
|
1,552
|
|
Pre-tax
income
|
|
|
6,375
|
|
|
6,988
|
|
|
15,308
|
|
|
21,286
|
|
Income tax
provision
|
|
|
766
|
|
|
1,474
|
|
|
3,615
|
|
|
4,924
|
|
Net income
|
|
$
|
5,609
|
|
$
|
5,514
|
|
$
|
11,693
|
|
$
|
16,362
|
|
Net income per share,
basic
|
|
$
|
0.80
|
|
$
|
0.82
|
|
$
|
1.68
|
|
$
|
2.44
|
|
Weighted average number
of shares used in computing basic net income per share
|
|
|
7,045,108
|
|
|
6,717,301
|
|
|
6,961,095
|
|
|
6,708,675
|
|
Net income per share,
diluted
|
|
$
|
0.72
|
|
$
|
0.71
|
|
$
|
1.50
|
|
$
|
2.09
|
|
Weighted average number
of shares used in computing diluted net income per share
|
|
|
7,771,088
|
|
|
7,818,236
|
|
|
7,783,350
|
|
|
7,847,390
|
|
Semler
Scientific, Inc.
Condensed Balance
Sheets
(In thousands of
U.S. Dollars, except share and per share data)
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
|
2024
|
|
2023
|
|
|
|
Unaudited
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
6,568
|
|
$
|
57,200
|
|
Restricted
cash
|
|
|
133
|
|
|
132
|
|
Trade accounts
receivable, net of allowance for credit losses of $266 and $287,
respectively
|
|
|
6,667
|
|
|
6,125
|
|
Short-term notes held
for investment
|
|
|
6,100
|
|
|
—
|
|
Inventory,
net
|
|
|
380
|
|
|
445
|
|
Prepaid expenses and
other current assets
|
|
|
1,646
|
|
|
2,042
|
|
Total current
assets
|
|
|
21,494
|
|
|
65,944
|
|
Assets for lease,
net
|
|
|
1,737
|
|
|
2,285
|
|
Property and equipment,
net
|
|
|
548
|
|
|
720
|
|
Long-term
investments
|
|
|
512
|
|
|
512
|
|
Notes held for
investment
|
|
|
—
|
|
|
5,372
|
|
Intangible digital
assets
|
|
|
64,482
|
|
|
—
|
|
Other non-current
assets
|
|
|
106
|
|
|
270
|
|
Deferred tax assets,
net of valuation allowance of $936 and $0, respectively
|
|
|
3,315
|
|
|
2,962
|
|
Total
assets
|
|
$
|
92,194
|
|
$
|
78,065
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
545
|
|
$
|
402
|
|
Accrued
expenses
|
|
|
5,258
|
|
|
4,502
|
|
Deferred
revenue
|
|
|
805
|
|
|
1,120
|
|
Other short-term
liabilities
|
|
|
231
|
|
|
176
|
|
Total current
liabilities
|
|
|
6,839
|
|
|
6,200
|
|
|
|
|
|
|
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
|
Other long-term
liabilities
|
|
|
—
|
|
|
70
|
|
Total long-term
liabilities
|
|
|
—
|
|
|
70
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
Common stock, $0.001
par value; 50,000,000 shares authorized; 7,334,600 and 7,099,441
shares issued, and 7,120,178 and 6,885,019 shares outstanding
(treasury shares of 214,422 and 214,422), respectively
|
|
|
7
|
|
|
7
|
|
Additional paid-in
capital
|
|
|
13,852
|
|
|
11,985
|
|
Retained
earnings
|
|
|
71,496
|
|
|
59,803
|
|
Total stockholders'
equity
|
|
|
85,355
|
|
|
71,795
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
92,194
|
|
$
|
78,065
|
|
Semler
Scientific, Inc.
Condensed Statements
of Cash Flows
Unaudited
(In thousands of
U.S. Dollars)
|
|
|
|
|
|
|
|
|
|
Nine months ended
September 30,
|
|
|
2024
|
|
2023
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
Net income
|
|
$
|
11,693
|
|
$
|
16,362
|
|
|
|
|
|
|
|
|
Reconciliation of Net
Income to Net Cash Provided by Operating Activities:
|
|
|
|
|
|
|
|
Depreciation
|
|
|
480
|
|
|
439
|
|
Deferred tax
expense
|
|
|
(353)
|
|
|
(478)
|
|
Loss on disposal of
assets for lease
|
|
|
323
|
|
|
355
|
|
Loss on disposal of
inventory
|
|
|
—
|
|
|
171
|
|
Gain on short-term
investments
|
|
|
—
|
|
|
(307)
|
|
Allowance for credit
losses
|
|
|
(21)
|
|
|
203
|
|
Change in fair value
of notes held for investment
|
|
|
(128)
|
|
|
217
|
|
Change in fair value
of digital assets
|
|
|
3,918
|
|
|
—
|
|
Stock-based
compensation
|
|
|
498
|
|
|
907
|
|
Changes in Operating
Assets and Liabilities:
|
|
|
|
|
|
|
|
Trade accounts
receivable
|
|
|
(512)
|
|
|
(2,284)
|
|
Inventory
|
|
|
65
|
|
|
30
|
|
Prepaid expenses and
other current assets
|
|
|
388
|
|
|
(478)
|
|
Other non-current
assets
|
|
|
64
|
|
|
98
|
|
Accounts
payable
|
|
|
143
|
|
|
(535)
|
|
Accrued
expenses
|
|
|
756
|
|
|
2,250
|
|
Other current and
non-current liabilities
|
|
|
(16)
|
|
|
(22)
|
|
Deferred
revenue
|
|
|
(315)
|
|
|
(40)
|
|
Net Cash Provided
by Operating Activities
|
|
|
16,983
|
|
|
16,888
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
Additions to property
and equipment
|
|
|
(48)
|
|
|
(310)
|
|
Purchase of notes held
for investment
|
|
|
(500)
|
|
|
(1,000)
|
|
Purchase of digital
assets
|
|
|
(68,400)
|
|
|
—
|
|
Proceeds from
maturities of short-term investments
|
|
|
—
|
|
|
59,719
|
|
Purchase of short-term
investments
|
|
|
—
|
|
|
(57,869)
|
|
Purchase of assets for
lease
|
|
|
(35)
|
|
|
(773)
|
|
Net Cash Used in
Investing Activities
|
|
|
(68,983)
|
|
|
(233)
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
Repurchase of
warrants
|
|
|
—
|
|
|
(1,949)
|
|
Proceeds from issuance
of common stock
|
|
|
2,536
|
|
|
—
|
|
Taxes paid related to
net settlement of equity awards
|
|
|
(874)
|
|
|
(247)
|
|
Stock issuance
expenses
|
|
|
(588)
|
|
|
—
|
|
Proceeds from exercise
of stock options
|
|
|
295
|
|
|
24
|
|
Net Cash Provided
by (Used in) Financing Activities
|
|
|
1,369
|
|
|
(2,172)
|
|
(DECREASE)
INCREASE IN CASH
|
|
|
(50,631)
|
|
|
14,483
|
|
CASH, CASH
EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF
PERIOD
|
|
|
57,332
|
|
|
23,014
|
|
CASH, CASH
EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD
|
|
$
|
6,701
|
|
$
|
37,497
|
|
Semler
Scientific, Inc.
Digital Assets-
Additional Information
Rollforward of
bitcoin holdings
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Source of Capital
Used to Purchase Bitcoin
|
|
Digital Assets at
Cost
(in thousands)
|
|
Change in Fair
Value
(in thousands)
|
|
Digital Assets at
Fair Value
(in thousands)
|
|
Approximate Number
of Bitcoin Held
|
|
Approximate
Average Purchase Price Per Bitcoin
|
|
Balance as of March 31,
2024
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
—
|
|
$
|
—
|
|
Digital assets
purchased
|
(a)
|
|
|
60,000
|
|
|
|
|
|
60,000
|
|
877
|
|
|
68,436
|
|
Change in fair value of
the digital assets
|
|
|
|
|
|
|
(5,055)
|
|
|
(5,055)
|
|
|
|
|
|
|
Balance as of June 30,
2024
|
|
|
$
|
60,000
|
|
$
|
(5,055)
|
|
$
|
54,945
|
|
877
|
|
$
|
68,436
|
|
Digital assets
purchased
|
(b)
|
|
|
8,400
|
|
|
—
|
|
|
8,400
|
|
141
|
|
|
67,177
|
|
Change in fair value of
the digital assets
|
|
|
|
—
|
|
|
1,137
|
|
|
1,137
|
|
—
|
|
|
—
|
|
Balance as of September
30, 2024
|
|
|
$
|
68,400
|
|
$
|
(3,918)
|
|
$
|
64,482
|
|
1,018
|
|
$
|
67,177
|
|
|
|
(a)
|
Cash from
operations
|
|
(b)
|
Cash from operations
and proceeds from ATM offering.
|
About Semler Scientific, Inc.:
Semler Scientific, Inc. is a pioneer in developing and marketing
technology products and services to healthcare providers to combat
chronic diseases. Its flagship product, QuantaFlo®, which is
patented and cleared by the U.S. Food and Drug Administration
(FDA), is a rapid point-of-care test that measures arterial blood
flow in the extremities. The QuantaFlo test aids in the diagnosis
of cardiovascular diseases, such as peripheral arterial disease
(PAD), and Semler Scientific is seeking a new 510(k) clearance for
expanded-indications. QuantaFlo is used by healthcare providers to
evaluate their patient's risk of mortality and major adverse
cardiovascular events (MACE). Semler Scientific also invests in
bitcoin and has adopted Bitcoin as its primary treasury asset.
Additional information about Semler Scientific can be found at
www.semlerscientific.com.
Forward-Looking Statements
This press release contains "forward-looking" statements. Such
statements can be identified by, among other things, the use of
forward-looking language such as the words "believe," "goal,"
"may," "will," "intend," "expect," "anticipate," "estimate,"
"project," "would," "could" or words with similar meaning or the
negatives of these terms or by the discussion of strategy or
intentions. The forward-looking statements in this release include
express or implied statements regarding acquiring and holding
bitcoin; as well as innovation and
growth in its healthcare business; and sales of securities under
the Sales Agreement and other financings to support additional
bitcoin purchases; seeking a new
510(k) clearance for QuantaFlo with expanded indications; among
others. Such forward-looking statements are subject to a number of
risks and uncertainties that could cause Semler Scientific's actual
results to differ materially from those discussed here, such as
risks inherent with investing in bitcoin, including bitcoin's volatility; risk of implementing a new
bitcoin treasury strategy; risk that
insurance plans and other customers will not continue to license
its cardiovascular testing products; risk of changes in the
reimbursement landscape for its customers including related to the
Centers for Medicare and Medicaid Services (CMS) rate announcement;
risk of obtaining a new 510(k) clearance for expanded indications;
along with those other risk factors detailed in Semler Scientific's
filings with the Securities and Exchange Commission. These
forward-looking statements involve assumptions, estimates, and
uncertainties that reflect current internal projections,
expectations or beliefs. There can be no assurance that such
statements will prove to be accurate, and actual results and future
events could differ materially from those anticipated in such
statements. All forward-looking statements contained in this press
release are qualified in their entirety by these cautionary
statements and the risk factors described above. Furthermore, all
such statements are made as of the date of this press release and
Semler Scientific assumes no obligation to update or revise these
statements unless otherwise required by law.
No Offer or Solicitation
This press release does not and shall not constitute an offer to
sell or a solicitation of an offer to buy any securities of Semler
Scientific, Inc., nor shall there be any offer, solicitation or
sale of such securities, in any state or jurisdiction in which such
an offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state or jurisdiction.
INVESTOR CONTACT:
Renae Cormier
Chief Financial Officer
ir@semlerscientific.com
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SOURCE Semler Scientific, Inc.