BOCA RATON, Fla. - VSee Health, Inc. (NASDAQ: VSEE), a telehealth service provider, today announced a business update and its financial results for the second quarter and first half of the year ending June 30, 2024. Following its recent merger and public listing, the company reported a revenue increase and expansion of services.
The company successfully completed its de-SPAC transaction, transitioning from Digital Health Acquisition Corp. to VSee Health, enhancing its telehealth capabilities, especially in acute care and tele-intensivist services. This merger combined the strengths of VSee Lab and iDoc Telehealth Solutions, aiming to foster growth and technological advancements in virtual care.
VSee Health has also formed a partnership with Ava Robotics to develop a telehealth robot, extending medical care into intensive care units remotely. Moreover, the company launched Aimee, a virtual healthcare service accessible regardless of insurance status, and contracted with Seven Corners Correctional Health to provide specialty care in federal prisons.
The financial results for the second quarter of 2024 show an increase in revenue to $1.7 million, up 33% from the same period in 2023. This growth is attributed to higher professional, technical, and engineering fees from new and existing customers. Operating expenses, however, rose by 69% due to transaction costs from the merger and increased legal and administrative fees.
The net loss for the quarter was $0.3 million, or $0.06 per share, which is a decrease from the net loss of $0.4 million, or $0.09 per share, in the second quarter of 2023. For the first half of 2024, revenue was up 11% to $3.2 million, and the net loss decreased by 62% to $0.3 million, or $0.07 per share.
Pro forma financial results, assuming the merger with iDoc occurred at the beginning of 2023, showed a slight decrease in total revenues for the first half of 2024 compared to the same period in 2023, with a net loss of $2.0 million, or $0.14 per share.
VSee Health's cash and cash equivalents stood at $1.1 million as of June 30, 2024. These results reflect the company's strategic initiatives to expand its service offerings and market reach, positioning it for potential revenue growth in the telehealth industry.
This article is based on a press release statement from VSee Health, Inc.
In other recent news, VSee Health, Inc. disclosed a Nasdaq compliance issue due to a delayed quarterly financial report filing, which is a non-compliance with the exchange's listing requirements. The company has been given until November 5, 2024, to present a plan to regain compliance. VSee Health has expressed its intention to comply and plans to file the delayed Form 10-Q as soon as possible.
In governance, VSee Health expanded its Board of Directors by appointing Cydonii V. Fairfax and David L. Wickersham as new Class III directors. Both Fairfax and Wickersham meet the independence criteria as defined by Nasdaq rules.
VSee Health also amended the terms of its convertible promissory note with an institutional investor, extending the maturity date to June 30, 2026, and guaranteeing eighteen months of interest. Additionally, the company issued an Equity Purchase Commitment Note of $500,000, payable in company shares at an initial price of $10 per share.
These recent developments also include the launch of a new telehealth program through its subsidiary iDoc Telehealth Solutions, Inc., in collaboration with the United States Federal Bureau of Prisons. The initiative aims to deliver outpatient specialty medical services to inmates across several federal prisons.
InvestingPro Insights
As VSee Health, Inc. (NASDAQ: VSEE) navigates through its post-merger phase, the company's financial health and stock performance present a mixed picture. According to InvestingPro data, VSee Health's market capitalization stands at $21.3 million, reflecting the company's modest size within the telehealth industry. Despite the reported revenue increase, the company's revenue for the last twelve months as of Q1 2024 experienced a decline of 7.41%. This indicates that while VSee Health is expanding its services, it faces challenges in maintaining consistent revenue growth.
The stock's performance has been notably turbulent, with a 1-month price total return showing a significant 15.2% drop, and a staggering 87.83% decline over the past year. This volatility is in line with an InvestingPro Tip stating that the stock generally trades with high price volatility and has fared poorly over the last month. Additionally, the company's short-term obligations exceed its liquid assets, which could signal potential liquidity risks that investors may need to monitor closely.
InvestingPro Tips further reveal that VSee Health does not pay a dividend to shareholders, which may influence the investment decisions of income-focused investors. For those considering investing in VSee Health, there are additional InvestingPro Tips available, which could provide deeper insights into the company's financial health and stock performance.
For a more comprehensive analysis and further InvestingPro Tips on VSee Health, interested readers can explore the detailed insights at https://www.investing.com/pro/VSEE.
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