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MARPAI REPORTS FIRST QUARTER 2025 FINANCIAL RESULTS

1. Marpai reports Q1 2025 revenues at $5.4 million, down 27% year-over-year. 2. Operating expenses decreased by 33%, indicating tighter cost management efforts. 3. Operating loss improved by 45% to $2.3 million, signaling positive trends. 4. CEO forecasts profitability and positive cash flow by the end of 2025. 5. Cash reserves are low at $0.7 million, may raise investor concerns.

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FAQ

Why Bullish?

Despite reduced revenues, improved losses and operational efficiency signal a turnaround. Historically, companies showing financial improvements often recover positively in the market.

How important is it?

The company's trajectory towards profitability may attract investors, though current losses remain a concern.

Why Short Term?

Immediate market sentiment may shift positively due to Q1 results, but sustainability is critical. For context, similar companies saw short-term spikes after reporting efficiency gains.

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Marpai's turnaround momentum is building , /PRNewswire/ -- Marpai, Inc. ("Marpai" or the "Company") (OTCQX: MRAI), a leader in innovative healthcare technology and Third-Party Administration (TPA) services, announced financial results for the first quarter of 2025. The Company expects to hold a webcast to discuss the results on May 15, 2025. Marpai CEO Damien Lamendola commented, "Our consistent double-digit success in cutting operating expenses and improving our bottom line signals what we believe is a critical inflection point for the Company. Looking ahead to the second quarter, we are focused on completing several key initiatives, including the launch of our Healthcare Management tool with Empara, LLC ("Empara"), exciting advancements with MarpaiRx, and the onboarding of our new Chief Operating Officer, Dallas Scrip. Our unwavering goal is to achieve profitability and positive cash flow by the end of 2025." Q1 2025 Financial Highlights: Net revenues were approximately $5.4 million for the three months ended March 31, 2025, down $2.0 million, or 27% lower year over year, compared to the three months ended March 31, 2024. Operating expenses were $7.7 million for the three months ended March 31, 2025, down $3.8 million, or 33% lower year over year, compared to the three months ended March 31, 2024. Operating loss was $2.3 million for the three months ended March 31, 2025, lower by $1.8 million, or 45% lower year over year, compared to the three months ended March 31, 2024. Net loss was $3.1 million for the three months ended March 31, 2025, lower by $1.3 million, or 29% lower year over year, compared to the three months ended March 31, 2024. Basic and diluted earnings per share were ($0.21) for the three months ended March 31, 2025, an improvement of $0.25 per share year over year, compared to the three months ended March 31, 2024. The Company had $0.7 million in unrestricted cash on hand at the end of three months ended March 31, 2025, down $0.1 million from the three months ended March 31, 2024. Webcast and Conference Call Information Marpai expects to host a conference call and webcast on Thursday, May 15, 2025, at 8:30 a.m. ET to review the Company's operational and financial highlights for its first quarter ended March 31, 2025. Investors interested in listening to the conference call may do so by dialing (800)-836-8184 for domestic callers or +1-646-357-8785 for international callers, or via webcast: https://app.webinar.net/e6RGaxOgz3n About Marpai, Inc. Marpai, Inc. (OTCQX: MRAI) is a technology platform company which operates subsidiaries that provide TPA and value-oriented health plan services to employers that directly pay for employee health benefits. Primarily competing in the $22 billion TPA sector serving self-funded employer health plans representing over $1 trillion in annual claims. Through its Marpai Saves initiative, the Company works to deliver the healthiest member population for the health plan budget. Operating nationwide, Marpai offers access to leading provider networks including Aetna and Cigna and all TPA services. For more information, visit www.marpaihealth.com, the content of which is not incorporated by reference into this press release. Investors are invited to visit https://ir.marpaihealth.com. Forward-Looking Statement Disclaimer This press release contains forward-looking statements, as that term is defined in the Private Litigation Reform Act of 1995, that involve significant risks and uncertainties. Forward-looking statements can be identified through the use of words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," "guidance," "may," "can," "could", "will", "potential", "should," "goal" and variations of these words or similar expressions. For example, the Company is using forward-looking statements when it discusses that it continues to make strong progress with its turnaround efforts, that improvements in its operating expenses and bottom line signals a critical inflection point for the Company, quarter, that it expects to complete several key initiatives, including the launch of its Healthcare Management tool with Empara and advancements with MarpaiRx, and that its goal remains profitability and positive cash flow by the end of 2025. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect Marpai's current expectations and speak only as of the date of this release. Actual results may differ materially from Marpai's current expectations depending upon a number of factors. These factors include, among others, adverse changes in general economic and market conditions, competitive factors including but not limited to pricing pressures and new product introductions, uncertainty of customer acceptance of new product offerings and market changes, risks associated with managing the growth of the business. Except as required by law, Marpai does not undertake any responsibility to revise or update any forward-looking statements whether as a result of new information, future events or otherwise. More detailed information about Marpai and the risk factors that may affect the realization of forward-looking statements is set forth in Marpai's filings with the Securities and Exchange Commission. Investors and security holders are urged to read these documents free of charge on the SEC's web site at http://www.sec.gov. MARPAI, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEET (in thousands, except share and per share data) (Unaudited) March 31, 2025 December 31, 2024 ASSETS: Current assets: Cash and cash equivalents $                         729 $                         764 Restricted cash 10,780 8,468 Accounts receivable, net of allowance for credit losses of $1 and $1 as of March 31, 2025 and Dec 31, 2024 368 837 Unbilled receivables 374 569 Due from buyer for sale of business unit — 500 Prepaid expenses and other current assets 615 759 Total current assets 12,866 11,897 Capitalized software, net 334 441 Operating lease right-of-use assets 281 296 Security deposits  229 229 Other long-term asset 8 15 Total assets $                    13,718 $                    12,878 LIABILITIES AND STOCKHOLDERS'  DEFICIT Current liabilities: Accounts payable $                      2,736 $                      3,109 Accrued expenses 1,906 2,585 Accrued fiduciary obligations 8,227 6,308 Deferred revenue 806 625 Current portion of operating lease liabilities 248 244 Current portion of convertible debentures, net 3,037 3,106 Other short-term liabilities 2,834 3,005 Total current liabilities 19,794 18,982 Other long-term liabilities 15,329 14,891 Convertible debentures, net of current portion 8,069 5,921 Operating lease liabilities, net of current portion 730 793 Total liabilities 43,922 40,587 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' DEFICIT Common stock, $0.0001 par value, 227,791,050 shares authorized; 14,896,686 shares and 14,237,176 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively 1 1 Additional paid-in capital 71,698 71,124 Accumulated deficit (101,903) (98,834) Total stockholders' deficit (30,204) (27,709) Total liabilities and stockholders' deficit $                    13,718 $                    12,878 MARPAI, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data) (Unaudited) Three Months Ended  March 31, 2025 March 31, 2024 Revenue $                      5,418 $                      7,385 Costs and expenses Cost of revenue (exclusive of depreciation and amortization shown separately below) 3,484 4,871 General and administrative 2,283 3,421 Information technology 1,390 1,124 Sales and marketing 245 602 Research and development 7 7 Depreciation and amortization 107 951 Facilities 152 474     Total costs and expenses 7,668 11,450 Operating loss (2,250) (4,065) Other income (expenses) Other income — 120 Interest expense, net (819) (398) Foreign exchange loss — (3) Loss before provision for income taxes (3,069) (4,346) Income tax expense — — Net loss $                    (3,069) $                    (4,346) Net loss per share, basic & fully diluted $                      (0.21) $                      (0.46) Weighted average common shares outstanding, basic and diluted 14,770,867 9,405,775 MARPAI, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (Unaudited) Three Months Ended  March 31, 2025 March 31, 2024 Cash flows from operating activities: Net loss $                    (3,069) $                    (4,346) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 107 951 Share-based compensation 574 561 Amortization of right-of-use asset 15 62 Non-cash interest expense 463 423 Amortization of debt premium and debt issuance costs (9) — Changes in operating assets and liabilities: Accounts receivable and unbilled receivables 664 800 Prepaid expense and other assets 151 (99) Accounts payable (373) (825) Accrued expenses (679) 215 Accrued fiduciary obligations 1,919 (2,063) Operating lease liabilities (59) (126) Other liabilities 181 862     Net cash used in operating activities (115) (3,585) Cash flows from investing activities: Proceeds from sale of business unit 500 — Net cash provided by investing activities 500 — Cash flows from financing activities: Proceeds from sale of future cash receipts on accounts receivable — 1,509 Proceeds from issuance of convertible debentures 3,000 — Payments of debt issuance costs (162) — Payments to buyer of receivables — (57) Payments on convertible debentures (750) — Payments to seller for acquisition (196) (474) Proceeds from issuance of common stock in a private offering, net — 2,727 Net cash provided by financing activities 1,892 3,705 Net increase in cash, cash equivalents and restricted cash 2,277 120 Cash, cash equivalents and restricted cash at beginning of period 9,232 13,492 Cash, cash equivalents and restricted cash at end of period $                    11,509 $                    13,612 Reconciliation of cash, cash equivalents, and restricted cash reported in   the condensed consolidated balance sheet Cash and cash equivalents $                         729 $                         851 Restricted cash 10,780 12,761 Total cash, cash equivalents and restricted cash shown in the condensed   consolidated statement of cash flows $                    11,509 $                    13,612 Supplemental disclosure of cash flow information Cash paid for interest $                         403 $                           — SOURCE Marpai WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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