SANTA
CLARA, Calif., Aug. 5, 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 second quarter ended June 30, 2024. In addition, the Company announced
the purchase of an additional 101 bitcoins for an aggregate amount
of $6.0 million. Since announcing the
adoption of a bitcoin treasury strategy on
May 28, 2024, the Company has
purchased 929 bitcoins for a total of $63.0
million.
"We are pleased to report strong income from operations of
$5.4 million in the second quarter,"
said Doug Murphy-Chutorian, MD,
chief executive officer of Semler Scientific. "We remain laser
focused on acquiring and holding bitcoin, while
supporting and expanding our healthcare business."
"We are very encouraged by the strong positive reaction to our
recent announcement of a bitcoin treasury strategy,"
said Eric Semler, chairman of Semler
Scientific. "We continue to firmly believe that
bitcoin is a compelling investment and plan on
acquiring additional bitcoins with our cash from operations, as
well as with cash generated from the sale of securities under our
$150.0 million shelf registration
statement, once effective."
FINANCIAL RESULTS
For the second quarter ended June 30,
2024, compared to the corresponding period of 2023, Semler
Scientific reported:
- Revenues of $14.5 million, a
decrease of $4.1 million, or 22%,
compared to $18.6 million.
- Cost of revenues of $1.3 million,
an increase of $0.1 million, or 3%,
compared to $1.2 million
- Total operating expenses, which include cost of revenues, of
$9.1 million, a decrease of
$2.3 million, or 20%, compared to
$11.4 million.
- Income from operations of $5.4
million, a decrease of $1.8
million, or 25%, compared to $7.2
million.
- Pre-tax net income of $1.1
million (which includes the change in fair value on our
bitcoin holdings of negative $5.1 million), a decrease of $6.6 million, or 85%, compared to $7.7 million.
- Income tax expense of $1.1
million, or an effective tax rate of 99%, compared to
$1.8 million, or an effective tax
rate of 23%.
- Net income of $11 thousand, or
breakeven, a decrease of $5.9
million, or 100%, compared to net income of $5.9 million, or $0.88 per basic share and $0.75 per diluted share.
Semler Scientific's three largest customers (including their
affiliates) comprised 44%, 27% and 11% of second quarter 2024
revenues, respectively, and its two largest customers
comprised 37% and 34% of second quarter 2023 revenues,
respectively.
BITCOIN HOLDINGS
On May 28, 2024, Semler Scientific
announced the initial purchase of 581 bitcoins for an aggregate
amount of $40.0 million. On
June 6, 2024, the Company announced
the purchase of an additional 247 bitcoins for an aggregate amount
of $17.0 million. On June 28, 2024, the Company purchased an
additional 49 bitcoins for an aggregate cost of $3.0 million. As of June
30, 2024, the Company held 877 bitcoins with a fair value of
$54.9 million, which reflects a
cumulative reduction in fair value of $5.1
million.
Subsequently through August 5,
2024, the Company has purchased an additional 52 bitcoins
for an aggregate cost of $3.0
million. Semler Scientific's total holdings as of
August 5, 2024 are 929 bitcoins for
an aggregate purchase amount of $63.0
million. All purchase amounts include fees and expenses.
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 second quarter ended June 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/10190580/fcfdde76dc. 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
June 30,
|
|
For the six months ended
June 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
14,465
|
|
$
|
18,605
|
|
$
|
30,368
|
|
$
|
36,811
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
1,255
|
|
|
1,219
|
|
|
2,501
|
|
|
2,488
|
|
Engineering and product
development
|
|
|
1,440
|
|
|
1,762
|
|
|
2,578
|
|
|
3,392
|
|
Sales and
marketing
|
|
|
3,456
|
|
|
4,985
|
|
|
7,131
|
|
|
10,177
|
|
General and
administrative
|
|
|
2,964
|
|
|
3,459
|
|
|
5,832
|
|
|
7,318
|
|
Total operating
expenses
|
|
|
9,115
|
|
|
11,425
|
|
|
18,042
|
|
|
23,375
|
|
Income from
operations
|
|
|
5,350
|
|
|
7,180
|
|
|
12,326
|
|
|
13,436
|
|
Interest and dividend
income
|
|
|
714
|
|
|
597
|
|
|
1,534
|
|
|
1,080
|
|
Change in fair value of
notes held for investment
|
|
|
128
|
|
|
(111)
|
|
|
128
|
|
|
(217)
|
|
Change in fair value of
digital assets
|
|
|
(5,055)
|
|
|
—
|
|
|
(5,055)
|
|
|
—
|
|
Other (expense)
income, net
|
|
|
(4,213)
|
|
|
486
|
|
|
(3,393)
|
|
|
863
|
|
Pre-tax
income
|
|
|
1,137
|
|
|
7,666
|
|
|
8,933
|
|
|
14,299
|
|
Income tax
provision
|
|
|
1,126
|
|
|
1,787
|
|
|
2,849
|
|
|
3,451
|
|
Net income
|
|
$
|
11
|
|
$
|
5,879
|
|
$
|
6,084
|
|
$
|
10,848
|
|
Net income per share,
basic
|
|
$
|
0.00
|
|
$
|
0.88
|
|
$
|
0.88
|
|
$
|
1.62
|
|
Weighted average number
of shares used in computing basic net
income per share
|
|
|
6,944,664
|
|
|
6,707,341
|
|
|
6,918,709
|
|
|
6,704,306
|
|
Net income per share,
diluted
|
|
$
|
0.00
|
|
$
|
0.75
|
|
$
|
0.78
|
|
$
|
1.38
|
|
Weighted average number
of shares used in computing diluted
net income per share
|
|
|
7,795,149
|
|
|
7,867,001
|
|
|
7,789,101
|
|
|
7,887,584
|
|
Semler
Scientific, Inc.
|
|
Condensed Balance
Sheets
|
|
(In thousands of
U.S. Dollars, except share and per share data)
|
|
|
|
June 30,
|
|
December 31,
|
|
|
2024
|
|
2023
|
|
|
Unaudited
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
7,332
|
|
$
|
57,200
|
|
Restricted
cash
|
|
|
132
|
|
|
132
|
|
Trade accounts
receivable, net of allowance for credit losses of $243 and $287,
respectively
|
|
|
7,470
|
|
|
6,125
|
|
Short-term notes held
for investments
|
|
|
6,100
|
|
|
—
|
|
Inventory,
net
|
|
|
385
|
|
|
445
|
|
Prepaid expenses and
other current assets
|
|
|
2,271
|
|
|
2,042
|
|
Total current
assets
|
|
|
23,690
|
|
|
65,944
|
|
Assets for lease,
net
|
|
|
1,768
|
|
|
2,285
|
|
Property and equipment,
net
|
|
|
620
|
|
|
720
|
|
Long-term
investments
|
|
|
512
|
|
|
512
|
|
Notes held for
investment
|
|
|
—
|
|
|
5,372
|
|
Intangible digital
assets
|
|
|
54,945
|
|
|
—
|
|
Other non-current
assets
|
|
|
127
|
|
|
270
|
|
Deferred tax assets,
net of valuation allowance of $1,207 and $0,
respectively
|
|
|
3,124
|
|
|
2,962
|
|
Total
assets
|
|
$
|
84,786
|
|
$
|
78,065
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders'
Equity
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
227
|
|
$
|
402
|
|
Accrued
expenses
|
|
|
5,086
|
|
|
4,502
|
|
Deferred
revenue
|
|
|
840
|
|
|
1,120
|
|
Other short-term
liabilities
|
|
|
211
|
|
|
176
|
|
Total current
liabilities
|
|
|
6,364
|
|
|
6,200
|
|
|
|
|
|
|
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
|
Other long-term
liabilities
|
|
|
24
|
|
|
70
|
|
Total long-term
liabilities
|
|
|
24
|
|
|
70
|
|
Commitments and
contingencies (Note 15)
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
Common stock, $0.001
par value; 50,000,000 shares authorized; 7,202,146 and 7,099,441
shares
issued, and 6,987,724 and 6,885,019 shares outstanding (treasury
shares of 214,422 and
214,422), respectively
|
|
|
7
|
|
|
7
|
|
Additional paid-in
capital
|
|
|
12,504
|
|
|
11,985
|
|
Retained
earnings
|
|
|
65,887
|
|
|
59,803
|
|
Total stockholders'
equity
|
|
|
78,398
|
|
|
71,795
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
84,786
|
|
$
|
78,065
|
|
Semler
Scientific, Inc.
|
|
Condensed Statements
of Cash Flows
|
|
Unaudited
|
|
(In thousands of
U.S. Dollars)
|
|
|
|
Six months ended June 30,
|
|
|
2024
|
|
2023
|
|
CASH FLOWS FROM OPERATING
ACTIVITIES:
|
|
|
|
|
|
|
|
Net income
|
|
$
|
6,084
|
|
$
|
10,848
|
|
|
|
|
|
|
|
|
Reconciliation of Net
Income to Net Cash Provided by Operating Activities:
|
|
|
|
|
|
|
|
Depreciation
|
|
|
346
|
|
|
279
|
|
Deferred tax
expense
|
|
|
(163)
|
|
|
(207)
|
|
Loss on disposal of
assets for lease
|
|
|
319
|
|
|
114
|
|
Gain on short-term
investments
|
|
|
—
|
|
|
(237)
|
|
Allowance for credit
losses
|
|
|
(44)
|
|
|
92
|
|
Change in fair value
of notes held for investment
|
|
|
(128)
|
|
|
217
|
|
Change in fair value
of digital assets
|
|
|
5,055
|
|
|
—
|
|
Stock-based
compensation
|
|
|
295
|
|
|
860
|
|
Changes in Operating
Assets and Liabilities:
|
|
|
|
|
|
|
|
Trade accounts
receivable
|
|
|
(1,292)
|
|
|
(2,240)
|
|
Inventory
|
|
|
60
|
|
|
(7)
|
|
Prepaid expenses and
other current assets
|
|
|
(135)
|
|
|
(950)
|
|
Other non-current
assets
|
|
|
43
|
|
|
106
|
|
Accounts
payable
|
|
|
(175)
|
|
|
(326)
|
|
Accrued
expenses
|
|
|
584
|
|
|
3,495
|
|
Other current and
non-current liabilities
|
|
|
(291)
|
|
|
13
|
|
Net Cash Provided by Operating
Activities
|
|
|
10,558
|
|
|
12,057
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING
ACTIVITIES:
|
|
|
|
|
|
|
|
Additions to property
and equipment
|
|
|
(48)
|
|
|
(260)
|
|
Purchase of notes held
for investment
|
|
|
(500)
|
|
|
(500)
|
|
Purchase of digital
assets
|
|
|
(60,000)
|
|
|
—
|
|
Proceeds from
maturities of short-term investments
|
|
|
—
|
|
|
57,707
|
|
Purchase of short-term
investments
|
|
|
—
|
|
|
(49,728)
|
|
Purchase of assets for
lease
|
|
|
|
|
|
(674)
|
|
Net Cash (Used in) Provided by Investing
Activities
|
|
|
(60,548)
|
|
|
6,545
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING
ACTIVITIES:
|
|
|
|
|
|
|
|
Repurchase of
warrants
|
|
|
—
|
|
|
(1,949)
|
|
Taxes paid related to
net settlement of equity awards
|
|
|
(45)
|
|
|
(172)
|
|
Stock issuance
expenses
|
|
|
(102)
|
|
|
—
|
|
Proceeds from exercise
of stock options
|
|
|
269
|
|
|
—
|
|
Net Cash Provided by (Used in) Financing
Activities
|
|
|
122
|
|
|
(2,121)
|
|
(DECREASE) INCREASE IN
CASH
|
|
|
(49,868)
|
|
|
16,481
|
|
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING
OF PERIOD
|
|
|
57,332
|
|
|
23,014
|
|
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF
PERIOD
|
|
$
|
7,464
|
|
$
|
39,495
|
|
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
|
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 expansion of the healthcare
business; seeking a new 510(k) clearance for QuantaFlo with
expanded indications for use; purchase of additional bitcoin; value
of bitcoin and ability to execute on the bitcoin treasury strategy;
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 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 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.