OneMedNet Reports 31% Revenue Increase but $3.6 Million Net Loss in Q2 2024

OneMedNet Corporation reported its financial results for the second quarter of 2024, revealing a total revenue of $227,000, a 31% increase from $173,000 in the same period of 2023. The company's revenue streams include subscription revenue, which decreased by 18% to $141,000, and web imaging revenue, which saw significant growth, reaching $86,000 compared to no revenue in the prior year. Despite the overall revenue increase, the company reported a net loss of $3.6 million for the quarter, a substantial improvement from a net loss of $9.6 million in the second quarter of 2023.

In the first half of 2024, OneMedNet's total revenue increased by 34% to $476,000, driven primarily by a notable rise in web imaging revenue, which surged to $134,000 from $16,000 in the same period last year. The company’s accumulated deficit as of June 30, 2024, stood at $97.1 million, reflecting ongoing challenges in achieving profitability. Operating expenses for the quarter rose to $2.4 million, up from $1.5 million in the previous year, largely due to increased general and administrative costs associated with being a public company.

Strategically, OneMedNet underwent a significant business combination in November 2023, merging with Data Knights Acquisition Corp. This merger has positioned OneMedNet to focus on its core offerings in digital medical image management and exchange. The company has also been actively managing its capital structure, including the issuance of convertible promissory notes and PIPE notes, which have contributed to its current liabilities totaling $20.2 million as of June 30, 2024.

Operationally, OneMedNet has seen a shift in its customer base and product focus, with a planned discontinuation of its BEAM platform by 2025. This transition has led to a halt in renewals for many customers, impacting subscription revenue. However, the company is enhancing its focus on its iRWD product, which has resulted in increased customer deliveries. As of June 30, 2024, OneMedNet had 24,050,010 shares of common stock outstanding, reflecting ongoing efforts to manage its equity structure.

Looking ahead, OneMedNet's management has expressed concerns regarding its ability to continue as a going concern, citing insufficient cash reserves to meet operational needs for the next twelve months. The company plans to raise additional capital through equity or debt offerings to support its operations and growth initiatives. The outlook remains cautious as OneMedNet navigates the complexities of its business model and market conditions while striving for profitability.