Semler Scientific Inc (SMLR) 2024 Q3 法說會逐字稿

Good afternoon, everyone and welcome to the Semler Scientific third quarter, 2024 financial results conference call.

大家下午好，歡迎參加 Semler Scientific 2024 年第三季財務業績電話會議。

All participants will be in a listen-only mode after today's prepared remarks as time permits management will take questions submitted prior to this call via email.

在今天準備好的發言之後，所有參與者都將處於聆聽模式，如果時間允許，管理層將透過電子郵件回答本次電話會議之前提交的問題。

Please note this event is being recorded. Before we begin Semler Scientific needs to remind you that certain comments made during this call may constitute forward-looking statements and are made pursuant to and within the meaning of the safe harbor provisions of the private Securities Litigation Reform Act of 1995 as amended.

請注意此事件正在被記錄。在我們開始之前，Semler Scientific 需要提醒您，在本次電話會議中發表的某些評論可能構成前瞻性陳述，並且是根據經修訂的1995 年私人證券訴訟改革法案的安全港條款並在其含義範圍內發表的。

These include statements regarding the expectations for expansion of the business, the development and marketing of additional products including receipts and timing of an additional 510 K clearance for quantum flow and our recently adopted Bitcoin Treasury strategy that plans to acquire additional Bitcoin. Such forward-looking statements are subject to both known and unknown risks and uncertainties that could cause actual results to differ materially from such statements.

其中包括有關業務擴展的預期、其他產品的開發和營銷的聲明，包括量子流額外 510 K 清算的收據和時間安排，以及我們最近採用的計劃購買額外比特幣的比特幣財政部策略。此類前瞻性陳述受到已知和未知的風險和不確定性的影響，可能導致實際結果與此類陳述有重大差異。

Risks and uncertainties are described in the press release and our SEC filings.

新聞稿和我們向 SEC 提交的文件中描述了風險和不確定性。

The forward-looking statements made today are as of as of the date of this call. The company does not undertake any obligation to update forward-looking statements.

今天發表的前瞻性聲明截至本次電話會議之日。該公司不承擔任何更新前瞻性陳述的義務。

If you do not have a copy of today's release, you obtain one by visiting the investor relations page of the website of our Scientific.com.

如果您沒有今天新聞稿的副本，您可以透過造訪 Scientific.com 網站的投資者關係頁面取得一份。

Now, I'd like to introduce Doug Murphy-Chutorian CEO of Semler Scientific.

現在，我想介紹一下 Semler Scientific 的執行長 Doug Murphy-Chutorian。

Good afternoon, everyone.

大家下午好。

Thank you for joining us for our third quarter 2024 results call. Once again, we retrieved strong income from operations and use most of our cash and cash equivalent to buy Bitcoin as of November 5, 2024, we hold 1,058 Bitcoins and now I will turn the call over to Eric Semler, our Chairman who will provide you with an update on our Bitcoin strategy, Eric.

感謝您參加我們的 2024 年第三季業績電話會議。截至2024 年11 月5 日，我們再次從營運中獲得了強勁的收入，並使用大部分現金和現金等價物購買了比特幣，我們持有1,058 個比特幣，現在我將把電話轉給我們的董事長埃里克·塞姆勒(Eric Semler)，他將為您提供艾瑞克，更新了我們的比特幣策略。

Thank you Doug and thank you to all our shareholders for listening in today with our third quarter results. We are very pleased to announce the excellent progress we are making with our strategy of accumulating Bitcoin using both our strong operating cash flow and our ATM program. We have added meaningfully to our Bitcoin per share, as an operating business we're able to use cash flows as well as proceeds from equity issuances to acquire Bitcoin, which serves as our primary treasury reserve asset. We view our $71 million of Bitcoin purchases to date as highly accretive to our equity. Since announcing our Bitcoin Treasury reserve strategy in May, we have even greater confidence today in the investment upside of Bitcoin and the unique opportunity we have to use our balance sheet to drive outsized returns in our stock. We intend to continue to use our operating cash and ATM to buy more Bitcoin. We will act prudently and use our ATM when we believe it is a creative to do so.

謝謝道格，也感謝我們所有的股東今天聆聽我們第三季的業績。我們非常高興地宣布，我們利用強大的營運現金流量和 ATM 程式累積比特幣的策略取得了巨大進展。我們已經有意義地增加了每股比特幣，作為一家營運企業，我們能夠使用現金流以及股票發行收益來收購比特幣，比特幣是我們的主要庫存儲備資產。我們認為迄今為止 7,100 萬美元的比特幣購買對我們的股權有很大的增值作用。自從五月宣布我們的比特幣國債儲備策略以來，我們今天對比特幣的投資優勢以及我們必須利用我們的資產負債表來推動股票超額回報的獨特機會更加充滿信心。我們打算繼續使用我們的營運現金和 ATM 購買更多比特幣。當我們認為這樣做具有創造性時，我們將謹慎行事並使用我們的 ATM。

Furthermore, we are exploring a wide range of additional financing options to raise more cash to acquire more Bitcoin. All financing options will be thoroughly evaluated and pursued methodically and responsibly.

此外，我們正在探索各種額外的融資方案，以籌集更多現金來購買更多比特幣。所有融資方案都將經過徹底評估，並有條不紊、負責任地進行。

Now, I'm pleased to introduce our COO Jennifer Oliva Herrington to provide an overview and update of our core medical products and services business, Jen.

現在，我很高興介紹我們的營運長 Jennifer Oliva Herrington，她概述並更新了我們的核心醫療產品和服務業務。

Thank you, Eric. Today, I'll be presenting an overview of our market development and opportunities, Renae Cormier our CFO will be providing information about third quarter, 2024 financial results.

謝謝你，埃里克。今天，我將概述我們的市場發展和機遇，我們的財務長 Renae Cormier 將提供有關 2024 年第三季財務業績的資訊。

Summer is a pioneer in developing and marketing technology products and services to health care providers to combat chronic diseases. In conjunction with our Bitcoin Treasury Strategy, we will continue to focus on our core medical products and services business.

Summer 是向醫療保健提供者開發和行銷技術產品和服務以對抗慢性病的先驅。結合我們的比特幣財務策略，我們將繼續專注於我們的核心醫療產品和服務業務。

Our core product QuantaFlo is a non invasive point of care device that aids clinicians in the early diagnosis of Peripheral artery disease or PAD.

我們的核心產品 QuantaFlo 是一種非侵入性護理點設備，可幫助臨床醫生早期診斷週邊動脈疾病或 PAD。

With a fast based model we generate recurring revenue from a large under penetrated market.

透過基於快速的模型，我們從一個未滲透的大市場中產生經常性收入。

[Semler] mission is to improve health care outcomes by supporting early detection of cardiovascular diseases a major global burden to the health care system.

[Semler] 的使命是透過支持心血管疾病的早期發現來改善醫療保健結果，心血管疾病是全球醫療保健系統的主要負擔。

Cardiovascular disease ranks as a top concern in health care expenditures and global mortality underscoring the imperative for early identification of cardiac conditions.

心血管疾病是醫療保健支出和全球死亡率中最受關注的問題，凸顯了早期識別心臟病的必要性。

We are committed to expanding our product offerings and advancing research to stay at the forefront of medical innovation. Our long term vision includes extending our reach to encompass additional cardiovascular applications, reflecting our dedication to continuous expansion.

我們致力於擴大我們的產品範圍並推進研究，以保持在醫療創新的前沿。我們的長期願景包括擴大我們的業務範圍以涵蓋更多心血管應用，這反映了我們對持續擴張的奉獻精神。

As we continue to innovate, we announced earlier this year that we are seeking a new 510 K clearance for an extension to our QuantaFlo product. We hope that we will obtain the 510 k clearance for this extension in the first half of 2025.

隨著我們不斷創新，我們在今年稍早宣布，我們正在尋求新的 510 K 許可，以擴展我們的 QuantaFlo 產品。我們希望能夠在 2025 年上半年獲得此次延期的 510 k 許可。

In the meantime, we continue to promote QuantaFlo as a valuable tool as an aid in the diagnosis of PAD and work to establish it as the standard of care.

同時，我們繼續推廣 QuantaFlo 作為一種有價值的工具，幫助診斷 PAD，並努力將其確立為護理標準。

Our strategy includes expanding our customer base by adding new medical centers growing within value based care providers and growing new markets that will benefit from PAD testing.

我們的策略包括透過增加基於價值的護理提供者內部發展的新醫療中心以及發展將從 PAD 測試中受益的新市場來擴大我們的客戶群。

I will now turn the call over to Renae to discuss our financial highlights, Renee.

我現在將把電話轉給 Renae，討論我們的財務亮點，Renee。

Thank you, Jen. I will cover our third quarter financial results and then speak more about our Bitcoin holdings and use of ATM under our effective S-3 registration statement following our remarks and as time permits, we will answer questions that have been submitted via email.

謝謝你，珍。我將介紹我們第三季度的財務業績，然後在我們的發言後根據有效的S-3 註冊聲明更多地討論我們的比特幣持有量和ATM 的使用情況，並且在時間允許的情況下，我們將回答透過電子郵件提交的問題。

Total revenues in Q3 2024 were $13.5 million which was down about 17% compared to the third quarter of 2023.

2024 年第三季的總營收為 1,350 萬美元，比 2023 年第三季下降約 17%。

We expect revenues in the fourth quarter to follow a similar cadence we saw in 2023 in the third quarter of 2024 our two largest customers including their related affiliates comprised 44% and 29% of quarterly revenues respectively.

我們預計第四季度的收入將遵循 2023 年第三季的類似節奏，2024 年第三季我們的兩個最大客戶（包括其相關附屬公司）分別佔季度收入的 44% 和 29%。

Operating expenses in Q3 2024 which includes cost of revenue were $8.4 million. A decrease of 16% year over year income from operation was $5.1 million compared to $6.3 million in the prior year.

2024 年第三季的營運費用（包括收入成本）為 840 萬美元。營業收入為 510 萬美元，較前一年的 630 萬美元下降 16%。

For the remainder of the year, we're focused on tight expense control as we continue to implement our Bitcoin Treasury strategy.

在今年剩下的時間裡，我們將繼續實施比特幣財務策略，並專注於嚴格的費用控制。

Other income net was $1.3 million and included a gain of $1.1 million from the change in fair value of our Bitcoin holdings.

其他淨收入額為 130 萬美元，其中包括我們持有的比特幣公允價值變動帶來的 110 萬美元收益。

We have elected to early adopt a ASU 2023-08 which is the new standard issued by the Fed before accounting for disclosure of crypto assets. ASU 2023-08 requires Bitcoin assets to be measured at fair value with gains and losses from changes in the fair value to be recognized in net income in each reporting period.

我們選擇提前採用 ASU 2023-08，這是聯準會在考慮加密資產揭露之前發布的新標準。ASU 2023-08 要求比特幣資產以公允價值計量，公允價值變動產生的利得和損失應在每個報告期間的淨利潤中確認。

Well, this may introduce volatility into our reported net income. It will not impact our cash flow from operations which we intend to invest in additional Bitcoin purchases.

嗯，這可能會為我們報告的淨利潤帶來波動。這不會影響我們打算投資額外購買比特幣的業務現金流。

Net income was 5.6 million or $0.80 per basic share and $0.72 per fully diluted share compared to net income of $5.5 million or $0.82 per basic share and $0.71 per fully diluted share in Q3 2023 cash, cash equivalent and restricted cash at September 30th 2024 was $6.7 million, outside of working capital needs we intend to use our liquid assets including operating cash generation to acquire more Bitcoin.

淨利為560 萬美元，即每股基本股0.80 美元，每股完全稀釋股0.72 美元，而2023 年第三季的淨利為550 萬美元，即每股基本股0.82 美元，每股完全稀釋股0.71 美元。 。

In August, our self registration statement on form S-3 became effective under which we may from time to time offer issue and sell debt securities, common stock and our warrants with a total value of up to $150 million.

8 月，我們在 S-3 表格上的自我登記聲明生效，根據該聲明，我們可以不時發行和出售總價值高達 1.5 億美元的債務證券、普通股和認股權證。

At the same time, we filed a $50 million at the market or ATM offering prospectus covering the offering issuance and sale of common stock. We intend to utilize the ATM when market conditions are favorable and we'll use the proceeds primarily for general corporate purposes including the acquisition of Bitcoin.

同時，我們在市場或ATM上提交了一份5000萬美元的招股說明書，涵蓋了普通股的發行和銷售。我們打算在市場條件有利時使用 ATM，我們將主要將所得款項用於一般公司用途，包括收購比特幣。

During the third quarter of 2024 we sold approximately 87,000 shares under the ATM for an aggregate net proceeds less sales commission of approximately $2.5 million.

2024 年第三季度，我們透過 ATM 出售了約 87,000 股股票，扣除銷售佣金後的淨收益總額約為 250 萬美元。

We utilize these proceeds as well as cash from operations to purchase additional Bitcoin.

我們利用這些收益以及營運現金來購買額外的比特幣。

During the third quarter of 2024 we purchased 142 Bitcoins for an aggregate cost of $8.4 million. Subsequent to quarter end, we purchased an additional 40 Bitcoins for an aggregate cost of $2.6 million and now hold a total of 1,058 Bitcoin.

2024 年第三季度，我們購買了 142 個比特幣，總成本為 840 萬美元。季度末後，我們又買了 40 個比特幣，總成本為 260 萬美元，現在總共持有 1,058 個比特幣。

Now we'll begin our Q&A we received some questions ahead of release that we try to address in the prepared remarks. We do have some time for additional questions.

現在我們將開始問答，我們在發布之前收到了一些問題，我們試圖在準備好的評論中解決這些問題。我們確實有時間回答其他問題。

The first one is, does the company have an imminent pathway to becoming registered for the trading of options of its shares which could be a creative for shareholders?

第一個問題是，公司是否有一個迫在眉睫的途徑來註冊其股票選擇權交易，這對股東來說可能是個創意？

So the process of listing options comes at the request of a broker dealer to an exchange. The exchange will look at several different criteria that the stock must satisfy in order for options to be traded we believe that the only criteria we do not meet is a public float of $7 million freely tradable shares given our high insider ownership, we can continue to increase our shares outstanding as we execute on our ATM and believe we can eventually satisfy all requirements in order for the exchange to list options for our stock.

因此，列出期權的過程是應經紀交易商向交易所提出的要求而進行的。交易所將考慮股票必須滿足的幾個不同標準才能進行期權交易，我們認為，我們唯一不滿足的標準是公眾持股量為700 萬美元的可自由交易股票，考慮到我們的內部人員所有權較高，我們可以繼續當我們在 ATM 上執行交易時，我們會增加已發行股票，並相信我們最終能夠滿足交易所列出我們股票選擇權的所有要求。

Our next question is for Eric, can you give an update on your capital market strategy? Does the company have any plans to issue bonds or convertible debt to acquire more Bitcoin per share?

我們的下一個問題是艾瑞克（Eric），您能否介紹一下您的資本市場策略的最新情況？該公司是否有計劃發行債券或可轉換債券以每股收購更多比特幣？

Thanks, Renae.

謝謝，蕾娜。

As we mentioned earlier, we plan to continue purchasing Bitcoin with cash generated from operations and from our ATM program and we are also exploring additional financing options to raise more cash to acquire more Bitcoin and we fully understand the wisdom and benefits of sourcing cash from straight debt and convertible bonds as long as they are executed on reasonable terms.

正如我們之前提到的，我們計劃繼續用營運和ATM 計劃產生的現金購買比特幣，我們也正在探索其他融資方案，以籌集更多現金來購買更多比特幣，我們充分理解直接從銀行獲取現金的智慧和好處。

Thanks Eric, I can take the next question. So what's driving the underlying trends in the business and what do you expect for the remainder of the year?

謝謝艾瑞克，我可以回答下一個問題。那麼是什麼推動了業務的基本趨勢以及您對今年剩餘時間的期望是什麼？

So we continue to see demand for software licenses relating to our QuantaFlo product, we do see continued testing and we're expanding our customer base beyond managed care, reaching clinics and value based care providers. As the clinical importance of testing is still recognized. Our priority for the rest of the year is to maximize operating income beyond maintaining sufficient working capital to support innovate and grow our operations we plan to allocate the remainder of our operating cash generation into additional Bitcoin purchases.

因此，我們繼續看到與我們的QuantaFlo 產品相關的軟體許可證的需求，我們確實看到了持續的測試，並且我們正在將我們的客戶群擴展到管理護理之外，擴展到診所和基於價值的護理提供者。由於測試的臨床重要性仍然得到認可。我們今年剩餘時間的首要任務是最大限度地提高營業收入，除了維持足夠的營運資金以支持創新和發展我們的業務之外，我們計劃將剩餘的營運現金產生分配到額外的比特幣購買中。

So this final question, Eric you can take, is Semler going to release Bitcoin yield metrics.

所以，艾瑞克（Eric）你可以接受的最後一個問題是，塞姆勒（Semler）是否會發布比特幣收益率指標。

Thanks Renae. We believe that BTC yield is an excellent KPI for tracking the performance of our strategy to acquire Bitcoin in a creative way for our stakeholders. Bitcoin yield represents the percentage change period to period of the ratio between the company's Bitcoin holdings and it's assumed diluted shares outstanding, we closely monitor our Bitcoin yield internally and we were very pleased with our high 10s positive Bitcoin yield in the third quarter. This was driven by a 16% increase in our total Bitcoin holdings. While at the same time, our assumed diluted shares outstanding remained flat, assume diluted shares outstanding are based on the assumed exercise of all outstanding stock option awards not taking into account any vesting conditions or exercise price is a relatively straightforward calculation that can be done based on our public disclosures. As we get more experience with this KPI Bitcoin yield we will consider including it in our press releases in the future. Renae.

謝謝蕾娜。我們相信，比特幣收益率是一個很好的關鍵績效指標，可以用來追蹤我們以創造性方式為利害關係人獲取比特幣的策略的績效。比特幣收益率代表了公司持有的比特幣與假設的稀釋流通股之間的比率隨時間變化的百分比，我們在內部密切監控我們的比特幣收益率，我們對第三季度10 倍以上的正比特幣收益率感到非常滿意。這是由於我們的比特幣總持有量增加了 16%。同時，我們假設稀釋後的流通股保持不變，假設稀釋後的流通股是基於假設行使所有流通在外的股票選擇權獎勵，不考慮任何歸屬條件或行使價，這是一個相對簡單的計算，可以根據關於我們的公開披露。隨著我們對這一 KPI 比特幣收益率獲得更多經驗，我們將考慮將其納入未來的新聞稿中。蕾娜。

Thank you, Eric. And thank you everyone for your questions. As we wrap up this conference call, we want to emphasize our ongoing commitment to our medical software licensing business and continued execution of our Bitcoin Treasury strategy. We appreciate your participation in today's discussion and thank you for your ongoing support operator.

謝謝你，埃里克。感謝大家提出的問題。在結束本次電話會議時，我們想強調我們對醫療軟體授權業務的持續承諾以及比特幣金庫策略的持續執行。我們感謝您參與今天的討論，並感謝您一直以來對營運商的支持。

Ladies and gentlemen, with that, we'll be concluding today's conference call and presentation. Thank you for joining, you may now disconnect your lines.

女士們、先生們，我們今天的電話會議和演示就到此結束。感謝您的加入，您現在可以斷開線路了。