Semler Scientific : reg; Reports First Quarter 2025 Financial Results, BTC Yield of 22.2% YTD; Now holds 3,808 BTC

Published: 2025-05-13 16:23:13 ET SMLR

Published on 05/13/2025 at 16:23

CAMPBELL, Calif., May 13, 2025/PRNewswire/ -- Semler Scientific, Inc. (Nasdaq: SMLR), a publicly traded company that has adopted bitcoinas its primary treasury reserve asset and is one of the leading corporate holders of bitcoin, today reported financial results for the first quarter ended March 31, 2025 and provided an update on its bitcoinholdings and other key performance indicators (KPIs).

"We continue to accretively grow our bitcoinarsenal using operating cash flow and proceeds from debt and equity financings," said Eric Semler, chairman of Semler Scientific. "And we are excited to launch the Semler Scientific dashboard today on our website to provide the public with regularly updated information on our bitcoinholdings and other key metrics."

"Our healthcare business is seeing green shoots from the cardiovascular product line that we introduced to our large enterprise customer base this year," said Doug Murphy-Chutorian, MD, chief executive officer of Semler Scientific. "We are expecting growth and cash generation from these FDA-cleared products and services, which will add to our bitcointreasury strategy."

BITCOINTREASURY HIGHLIGHTS AND OTHER RECENT DEVELOPMENTS

BitcoinDashboard

Today, Semler Scientific launched a dashboard on its website, www.semlerscientific.com, as a disclosure channel to provide broad, non-exclusionary distribution of information regarding Semler Scientific's bitcoinholdings to the public. Some of the information distributed through the website dashboard may be considered material information. Semler Scientific intends to use this website dashboard as a means of complying with its disclosure obligations under Regulation FD. The website dashboard will include information regarding market data for Semler Scientific's common stock and bitcoin, BTC Yield, BTC Gain and BTC $ Gain KPIs, bitcoinpurchases, bitcoinholdings, and other related information. Investors and others are encouraged to regularly review the information that Semler Scientific makes public via the website dashboard.

FINANCIAL RESULTS

For the first quarter ended March 31, 2025, Semler Scientific reported:

Semler Scientific's two largest customers (including their affiliates) comprised 42% and 32% of first quarter revenues in 2025, respectively, and its three largest customers comprised 45%, 25% and 11% of first quarter 2024 revenues, respectively.

Notice of Conference Call

Semler Scientific will host a conference call today at 4:30 p.m. ET. The call will address the results of the first quarter ended March 31, 2025, 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 [email protected].

Participants are encouraged to pre-register for the conference call using the following link: https://dpregister.com/sreg/10198429/fed9df5e40. 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.

Statements of Operations

Unaudited

(In thousands of U.S. Dollars, except share and per share data)

For the three months ended March 31,

2025

2024

Revenues

8,835

15,903

Operating expenses:

Cost of revenues

937

1,247

Engineering and product development

1,315

1,138

Sales and marketing

3,041

3,675

General and administrative

4,893

2,867

Litigation contingency

29,750

Total operating expenses

39,936

8,927

(Loss) income from operations

(31,101)

6,976

Interest (expense) income

(943)

819

Impairment of investments

(1,000)

Change in fair value of intangible digital assets

(41,829)

Other income

Other (expense) income, net

(43,768)

821

Pre-tax (loss) income

(74,869)

7,797

Income tax (benefit) provision

(10,167)

1,724

Net (loss) income

(64,702)

6,073

Net (loss) income per share, basic

(6.74)

0.88

Weighted average number of shares used in computing basic net (loss) income per share

9,596,037

6,892,742

Net (loss) income per share, diluted

(6.74)

0.78

Weighted average number of shares used in computing diluted net (loss) income per share

9,596,037

7,782,393

Semler Scientific, Inc.

Balance Sheets

(In thousands of U.S. Dollars, except share and per share data)

March 31,

December 31,

2025

2024

Unaudited

Assets

Current Assets:

Cash and cash equivalents

9,737

8,819

Restricted cash

134

133

Short-term notes receivable

6,100

Short-term deposits

250

Trade accounts receivable, net of allowance for credit losses of $147 and $199 respectively

3,139

4,378

Inventory

370

358

Prepaid expenses and other current assets

4,822

2,900

Total current assets

18,452

22,688

Assets for lease, net

1,469

1,423

Property and equipment, net

427

487

Long-term investments

512

Long-term notes receivable

1,500

Intangible digital assets

263,504

214,633

Other non-current assets

Deferred tax assets

7,517

Total assets

293,445

239,828

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable

590

140

Accrued expenses

4,397

5,173

Accrued contingent liability

29,750

Deferred revenue

711

774

Other short-term liabilities

219

226

Total current liabilities

35,667

6,313

Long-term liabilities:

Deferred tax liability

2,765

Long-term notes payable

96,095

Total long-term liabilities

96,095

2,765

Commitments and contingencies

Stockholders' equity:

Common stock, $0.001 par value; 50,000,000 shares authorized; 9,810,908 and 9,770,908 shares issued, and 9,596,486 and 9,556,486 shares outstanding (treasury shares of 214,422 and 214,422), respectively

Additional paid-in capital

125,673

130,039

Retained earnings

36,000

100,702

Total stockholders' equity

161,683

230,750

Total liabilities and stockholders' equity

293,445

239,828

Semler Scientific, Inc.

Statements of Cash Flows

Unaudited

(In thousands of U.S. Dollars)

For the three months ended March 31,

2025

2024

CASH FLOWS FROM OPERATING ACTIVITIES:

Net (loss) income

(64,702)

6,073

Reconciliation of Net (Loss) Income to Net Cash (Used in) Provided by Operating Activities:

Depreciation

120

176

Amortization of debt issuance costs

111

Deferred tax expense

(10,284)

(136)

Loss on disposal of assets for lease

105

189

Allowance for credit losses

(52)

(55)

Change in fair value of digital assets

41,829

Stock-based compensation

1,483

Impairment of investments

1,135

Changes in Operating Assets and Liabilities:

Trade accounts receivable

1,306

Inventory

(12)

Prepaid expenses and other current assets

(2,188)

(455)

Other non-current assets

Accounts payable

451

Accrued interest

616

Accrued expenses

28,241

(196)

Other current and non-current liabilities

(23)

(131)

Deferred revenue

(63)

Net Cash (Used in) Provided by Operating Activities

(1,906)

5,624

CASH FLOWS FROM INVESTING ACTIVITIES:

Additions to property and equipment

(4)

Purchase of digital assets

(90,700)

Proceeds from maturities of notes receivable

3,600

Purchase of assets for lease

(210)

(77)

Net Cash Used in Investing Activities

(87,310)

(81)

CASH FLOWS FROM FINANCING ACTIVITIES:

Taxes paid related to net settlement of equity awards

(45)

Proceeds from issuance of debt

100,000

Debt issuance costs

(4,017)

Capital call premium

(7,740)

Proceeds from issuance of common stock

2,187

Stock issuance expenses

(295)

Proceeds from exercise of stock options

Net Cash Provided by Financing Activities

90,135

NET INCREASE IN CASH AND CASH EQUIVALENTS

919

5,554

CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD

8,952

57,332

CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD

9,871

62,886

Digital Assets- Additional Information

Rollforward of bitcoinholdings

Unaudited

(in thousands of U.S. Dollars, except bitcoinheld and price per bitcoin)

Source of

Approximate

Capital

Average

Used to

Purchase

Digital Assets

Change in

Digital Assets

Approximate

Price Per

Bitcoin

at Cost

Fair Value

at Fair Value

BitcoinHeld

Bitcoin(in $)

Balance as of December 31, 2023

Digital assets purchased

Balance as of March 31, 2024

Digital assets purchased

(a)

60,000

877

68,436

Change in fair value of the digital assets

(5,055)

Balance as of June 30, 2024

60,000

(5,055)

54,945

877

68,436

Digital assets purchased

(b)

8,400

141

59,372

Change in fair value of the digital assets

1,137

Balance as of September 30, 2024

68,400

(3,918)

64,482

1,018

67,177

Digital assets purchased

(b)

121,300

1,280

94,755

Change in fair value of the digital assets

28,851

Balance as of December 31, 2024

189,700

24,933

214,633

2,298

82,538

Digital assets purchased

(c)

90,700

894

101,531

Change in fair value of the digital assets

(41,829)

Balance as of March 31, 2025

280,400

(16,896)

263,504

3,192

87,854

(a)

Cash from operations.

(b)

Cash from operations and proceeds from ATM offering.

(c)

Proceeds from 4.25% senior convertible notes.

BitcoinYield Key Performance Indicators

Unaudited

(In thousands)

12/31/2024

3/31/2025

5/12/2025

Total bitcoin holdings

2,298

3,192

3,808

Shares outstanding

Basic shares outstanding

9,556

9,596

11,611

Stock options outstanding

692

1,140

1,350

2030 senior notes

935

Assumed diluted shares outstanding (1)

10,248

11,671

13,896

BTC Yield % QTD

21.9 %

0.2 %

BTC Yield % YTD

21.9 %

22.2 %

(1)

Assumed Diluted Shares Outstanding refers to the aggregate of Semler Scientific's Basic Shares outstanding as of the end of each period plus all the additional shares that would result from the assumed conversion of all outstanding convertible notes and related capped calls, and exercise of all outstanding stock option awards. Assumed Diluted Shares Outstanding is not calculated using the treasury method and does not take into account any vesting conditions (in the case of equity awards), the exercise price of any stock option awards or any contractual conditions limiting convertibility of outstanding convertible notes or settlement of capped calls.

Semler Scientific, Inc.

Reconciliation of GAAP to Non-GAAP measures

Unaudited

(in thousands)

Three months ended March 31,

2025

2024

(Unaudited)

Reconciliation of non-GAAP income (loss) from operations:

(Loss) income from operations

(31,101)

6,976

Contingent liability

29,750

Stock-based compensation expense

1,483

Non-GAAP income from operations

132

7,003

Important Information about BTC Yield, BTC Gain and BTC $ Gain (KPIs)

BTC Yield, BTC Gain and BTC $ Gain are KPIs that Semler Scientific uses to help assess the performance of its strategy of acquiring bitcoinin a manner it believes is accretive to stockholders.

BTC Yield is a KPI that represents the percentage change period-to-period of the ratio between Semler Scientific's bitcoinholdings and its Assumed Diluted Shares Outstanding. Assumed Diluted Shares Outstanding refers to the aggregate of Semler Scientific's actual shares of common stock outstanding as of the end of each period plus all additional shares that would result from the assumed exercise of all outstanding stock option awards. Assumed Diluted Shares Outstanding is not calculated using the treasury method and does not take into account any vesting conditions or the exercise price of any stock option awards.

BTC Gain is a KPI that represents the number of bitcoins held by Semler Scientific at the beginning of a period multiplied by the BTC Yield for such period.

BTC $ Gain is a KPI that represents the dollar value of the BTC Gain calculated by multiplying the BTC Gain by the market price of bitcoinas of 4:00 p.m. ET on the Coinbaseexchange on the last day of the applicable period. Semler Scientific has elected 4:00 p.m. ET on the last day of the applicable period as the date and time of determination of the market price of bitcoinsolely for the purpose of facilitating this illustrative calculation.

Non-GAAP Financial Measure:

Semler Scientific prepares its condensed financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) and pursuant to accounting requirements of the Securities and Exchange Commission. In an effort to provide investors with additional information regarding the results and to provide a meaningful period-over-period comparison of Semler Scientific's financial performance, Semler Scientific sometimes uses non-U.S. GAAP financial measures (NGFMs) as defined by the Securities and Exchange Commission. In this press release, Semler Scientific is providing a supplemental NGFM, non-GAAP income from operations, which NGFM excludes (i) non-cash stock-based compensation expense, and (ii) the DOJ contingent liability, which is a non-recurring item.

Semler Scientific believes this NGFM measure is useful to investors and analysts in comparing its performance across reporting periods on a consistent basis as it excludes a significant non-cash expense and a non-recurring item that Semler Scientific believes are not reflective of its general business performance. Accounting for stock-based compensation expense requires management judgment, and the resulting stock-based compensation expense could vary significantly in comparison to other companies. The DOJ investigation and resulting contingent liability is non-recurring in nature. Semler Scientific used this NGFM to evaluate Semler Scientific's financial performance against internal budgets and targets. Semler Scientific believes the use of this NGFM can also facilitate comparison of Semler Scientific's operating results to those of its competitors. Semler Scientific believes this NGFM should be considered in addition to, and not in lieu of, GAAP financial measures. Semler Scientific's NGFM may be different from the same NGFM used by other companies.

About Semler Scientific, Inc.:

Semler Scientific, Inc. is a publicly traded company that has adopted bitcoinas its primary treasury reserve asset and is one of the leading corporate holders of bitcoin. In May 2024, Semler Scientific became the second U.S. publicly traded company to adopt a bitcointreasury strategy. By using proceeds from equity and debt financings, as well as cash flows from operations, Semler Scientific intends to strategically accumulate bitcoin. In addition, through its healthcare business, Semler Scientific is a pioneer in developing and marketing technology products and services to assist its customers in evaluating and treating 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). Additional information about Semler Scientific can be found at www.semlerscientific.com.

Semler Scientific intends to use its bitcoindashboard and its Investor Relations website as a means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor Semler Scientific's bitcoindashboard and Investor Relations website, in addition to following Semler Scientific's press releases, SEC filings, public conference calls, presentations, and webcasts.

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 acquiring and holding bitcoin; sales of securities under the new ATM offering and other financings to support additional bitcoinpurchases; the strategy for, and innovation and growth in, its healthcare business, including growth and cash generation from FDA-cleared products; seeking a new 510(k) clearance for QuantaFlo with expanded indications; and potential DOJ settlement; 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 risks inherent with investing in bitcoin, including bitcoin's volatility; risk of implementing a new bitcointreasury strategy; risk that insurance plans and other customers will not continue to license its cardiovascular testing products or license new FDA-cleared products and services; 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; risks related to reaching a final settlement with DOJ, including risk that DOJ will file complaint seeking in excess of the agreed amount if unable to agree on final settlement terms; risks related to Semler Scientific's indebtedness; 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 press 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 [email protected]

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SOURCE Semler Scientific, Inc.

Disclaimer

Semler Scientific Inc. published this content on May 13, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 13, 2025 at 20:22 UTC.