Company Overview

OneMedNet Corporation is a company that provides innovative solutions to unlock the significant value contained within the clinical image archives of healthcare providers. The company employs its OneMedNet iRWD™ solution, which securely de-identifies, searches, and curates a data archive locally, bringing a wealth of internal and third-party research opportunities to providers. By leveraging its extensive federated provider network, technology, and in-house clinical expertise, OneMedNet successfully meets the most rigorous Real World Data life science requirements.

Business Combination

On November 7, 2023, OneMedNet completed a business combination with Data Knights, whereby a subsidiary of Data Knights merged with and into Legacy ONMD, with Legacy ONMD surviving as a wholly-owned subsidiary of Data Knights. Following the business combination, Data Knights changed its name to “OneMedNet Corporation”. The total consideration for the business combination and related transactions was approximately $200 million.

Key Components of Consolidated Statements of Operations

Revenue The company generates revenue from two streams: (1) iRWD, which provides regulatory grade imaging and clinical data in the pharmaceutical, device manufacturing, contract research organizations, and AI markets, and (2) BEAM, which is a medical imaging exchange platform between hospital/healthcare systems, imaging centers, physicians, and patients. iRWD revenue is recognized when the data is delivered to the customer, while BEAM revenue is subscription-based and recognized ratably over the subscription period.

Cost of Revenue The company’s cost of revenue is composed of hosting, labor, and data costs associated with its distinct performance obligations.

General and Administrative General and administrative functions include finance, legal, operations, human resources, and information technology support, and include costs such as salaries, benefits, maintenance, supplies, professional fees, and depreciation.

Research and Development Costs incurred in the research and development of the company’s products are expensed as incurred, and include personnel, contracted services, materials, and indirect costs involved in the design and development of new products and services, as well as hosting expense.

Sales and Marketing Sales and marketing costs consist of labor and tradeshow costs.

Interest Expense Interest expense consists of interest incurred on outstanding debt facilities, including loans with related parties, deferred underwriter fees, insurance premiums paid in exchange for a note payable, and the company’s line of credit.

Other (Income) Expenses, Net Other (income) expenses, net, primarily includes changes in fair value of convertible debt, PIPE Notes, Yorkville Note, warrants, and the company’s Bitcoin holdings, as well as foreign exchange and tax expenses.

Results of Operations

The following table summarizes the company’s consolidated statements of operations data for the years ended December 31, 2024 and 2023:

Metric	2024	2023	$ Change	% Change
Subscription revenue	$351	$878	$(527)	-60%
Web imaging revenue	$292	$143	$149	104%
Total revenue	$643	$1,021	$(378)	-37%
Cost of revenue	$924	$1,150	$(226)	-20%
Gross margin	$(281)	$(129)	$(152)	118%
General and administrative	$7,027	$3,544	$3,483	98%
Sales and marketing	$830	$1,115	$(285)	-26%
Research and development	$1,467	$2,065	$(598)	-29%
Total operating expenses	$9,324	$6,724	$2,600	39%
Loss from operations	$(9,605)	$(6,853)	$(2,752)	40%
Net loss	$(10,129)	$(33,780)	$23,651	-70%

Revenue The company’s revenue decreased by 37% in 2024 compared to 2023, primarily due to a $0.5 million decrease in subscription revenue from the planned discontinuation of the BEAM platform, partially offset by a $0.1 million increase in web imaging revenue from the company’s enhanced focus on iRWD sales.

Cost of Revenue The decrease in cost of revenue of $0.2 million was primarily attributable to a decrease in software and hosting costs due to the planned shutdown of the BEAM platform and a decrease in personnel costs, partially offset by an increase in iRWD data charges.

General and Administrative General and administrative expenses increased by $3.5 million in 2024, primarily due to increases in accounting, audit, tax, legal, and insurance costs related to the company’s enhanced public company reporting obligations and regulatory requirements after the business combination.

Sales and Marketing Sales and marketing expenses decreased by $0.3 million in 2024, primarily due to a decrease in personnel costs driven by decreased headcount.

Research and Development Research and development expenses decreased by $0.6 million in 2024, primarily due to decreases in stock-based compensation expense and third-party contractor costs.

Liquidity and Capital Resources As of December 31, 2024, the company’s principal sources of liquidity were net proceeds from debt and equity financings, as well as cash received from customers. The company used $7.0 million in cash for operating activities, $2.0 million in cash for investing activities, and received $9.1 million in cash from financing activities during 2024.

Contractual Obligations and Commitments and Going Concern Outlook Management believes that the company’s current cash and cash equivalents are not sufficient to meet its foreseeable cash needs for at least the next 12 months, and the company will need to raise additional capital through a public or private offering to fund its operations and capital requirements. This raises substantial doubt about the company’s ability to continue as a going concern.

Critical Accounting Policies and Estimates The company’s critical accounting policies and estimates include revenue recognition, fair value of certain debt and liability instruments, and the fair value option of accounting.