Adjustments for Non-Cash Items (USD, thousands)

Stock-Based Compensation (USD, thousands)

Changes in Working Capital (USD, thousands)

Capital Expenditures (CapEx) (USD, thousands)

Proceeds from / Repayments of Debt (USD, thousands)

Share Repurchases (USD, thousands)

Dividend Payments (USD, thousands)

Net Change in Cash (USD, thousands)

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0500bba37d3a9b656c9cef609b0444155bd7a19b16e8d31db83bdb1f96020511

Percentage workforce reduction (percentage)

Number of employees reduced (employees)

96e418783443dad8610414db7b7279585eb17253a7d892d5fc0e3e6f46624546

Revenue - Products (USD, thousands)

Revenue - Services (USD, thousands)

Total Revenue (USD, thousands)

Cost of Revenue - Products (USD, thousands)

Cost of Revenue - Services (USD, thousands)

Cost of Revenue - Amortization and Depreciation (USD, thousands)

Total Cost of Revenue (USD, thousands)

Gross Profit (USD, thousands)

Operating Expenses - Engineering and Product Development (USD, thousands)

Operating Expenses - Marketing and Sales (USD, thousands)

Operating Expenses - General and Administrative (USD, thousands)

Operating Expenses - Amortization and Depreciation (USD, thousands)

Total Operating Expenses (USD, thousands)

Loss from Operations (USD, thousands)

Other Income/ (Expense) - Interest Expense (USD, thousands)

Other Income/ (Expense) - Interest Income (USD, thousands)

Other Income/ (Expense) - Other income (expense), net (USD, thousands)

Loss Before Provision for Income Taxes (USD, thousands)

Provision for Income Taxes (USD, thousands)

Loss from Continuing Operations (USD, thousands)

Loss from Discontinued Operations, Net of Tax (USD, thousands)

Net Loss and Comprehensive Loss (USD, thousands)

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e0a8f7419ab1855815900ecead8ce53c1912450f1456a1370a46840cd459a6d4

The total assets dropped sharply in Q4 2023 primarily because the company completed the **sale of its Xoft Business Line** in October 2023. This sale resulted in the removal of various associated assets from the balance sheet, including a significant reduction in **held-for-sale current and noncurrent assets** and a decrease in **inventory** due to the divestiture. Additionally, there were declines in **prepaid expenses and other current assets**, as well as continued **amortization of intangible assets**, which all contributed to the overall drop from **$51,705 thousand in December 2022** to **$41,418 thousand in December 2023**.  **[0001437749-24-007449_ex_598956.htm:4]** **[0001437749-24-010091_icad20231231_10k.htm:84]** **[0001437749-24-010091_icad20231231_10k.htm:81]** 

Why did Total assets drop so sharply in Q4 2023?

The significant decrease in Total liabilities in Q4 2023 was primarily caused by the **sale and divestiture of the Xoft business line**, which led to a reduction in liabilities associated with that segment. The related assets and liabilities were classified as held for sale, and its operations were reported as discontinued operations, contributing to the overall decrease in liabilities.  **[0001437749-24-007449_ex_598956.htm:4]** **[0001437749-24-010091_icad20231231_10k.htm:58]** **[0001437749-24-010091_icad20231231_10k.htm:84]** 

What caused the significant decrease in Total liabilities in Q4 2023?

In Q4 2023, **iCAD's cash and cash equivalents were higher** primarily due to several factors. **Proceeds from the sale of its Xoft business** added significant cash inflows (a **$5 million cash receipt** plus **$0.7 million held in escrow**).  **[0001437749-24-010091_icad20231231_10k.htm:84]**  Additionally, the company **raised approximately $2 million in net proceeds** through at-the-market common stock offerings in Q3 2023, which contributed to solidifying its cash position.  **[ICAD_3377701_6]**  Furthermore, **improved operating efficiency** led to a reduction in cash outflow—from **$3.1 million in Q4 2022 to $1.5 million in Q4 2023**—and overall lower net cash used for operating activities.  **[0001437749-24-007449_ex_598956.htm:0]**  Collectively, these measures resulted in a higher cash balance in Q4 2023.  **[0001437749-24-007449_ex_598956.htm:4]** **[0001437749-24-010091_icad20231231_10k.htm:81]** 

Why was Cash and cash equivalents higher in Q4 2023?

6ed0e185eeb15c3ba6f77c38fc3b51cf595772cbdd411cb9bbec4788cfde1447

The sharp increase in Q4 2023’s total revenue was driven primarily by a **7.8% increase in product revenue (an increase of $216 thousand)**, which resulted from **higher demand for products**. This growth more than offset a **5.8% decrease in service revenue (a decline of $110 thousand)**, leading to an overall revenue increase of **$106 thousand (2.3%)** compared to Q4 2022.  **[0001437749-24-007449_ex_598956.htm:0]** **[0001437749-24-010091_icad20231231_10k.htm:59]** 

What drove the sharp increase in Total Revenue in Q4 2023?

The turnaround in Q4 2023 was driven by several factors. The company implemented significant **cost-cutting measures**, reducing operating expenses by **22%**, which helped lower the overall cost base. Additionally, the **gross profit margin improved from 84% to 91%**, enhancing profitability. There was also revenue growth, with total revenue increasing and a notable **8% rise in product revenue** that helped offset a decline in service revenue. Finally, a substantial improvement in **non-GAAP adjusted EBITDA**, moving from a loss of **$3.1 million** to **$0.4 million**, also contributed to the improved net performance in the quarter.  **[ICAD_3377701_6]** **[0001437749-24-007449_ex_598956.htm:0]** 

Why did Net Loss and Comprehensive Loss turn positive in Q4 2023?

The significant increase in Revenue - Products in Q4 2023 was primarily driven by the company’s shift to a **subscription-based revenue model** and **increased customer demand for subscription licenses**, which resulted in a 7.8% growth compared to Q4 2022.  **[0001437749-24-007449_ex_598956.htm:0]** **[0001437749-24-010091_icad20231231_10k.htm:59]** 

Why did Revenue - Products jump significantly in Q4 2023?

The reversal in Cost of Revenue - Services in Q4 2023, where the figure dropped to **$109,000** from **$301,000** in Q4 2022 (a reduction of **$192,000** or approximately **63.8%**), does not have a clearly defined single cause according to the documents. However, this significant shift has been attributed to the company's **cost-cutting measures** and a **shift toward a subscription-based revenue model**, which likely contributed to lower service-related costs overall.  **[0001437749-24-007449_ex_598956.htm:5]** **[ICAD_3377701_6]** **[0001437749-24-010091_icad20231231_10k.htm:59]** 

What led to the reversal in Cost of Revenue - Services in Q4 2023?

The sharp decline in **Cost of Revenue - Products** in Q3 2024 was primarily driven by a **change in the mix of products sold**. There was a notable reduction in the proportion of **hardware** in the product mix, which tends to incur higher costs. This adjustment contributed to a decrease of **$66,000**, translating to a **25.1%** drop compared to Q3 2023.  **[0001437749-24-035016_icad20240930c_10q.htm:20]** 

What factors contributed to the sharp decline in Cost of Revenue - Products in Q3 2024?

bd287f8b0928f4a05bbb5f55f365ab32691e4d8bbe8874532ae3301af0270610

Net loss [USD, thousands]

Amortization [USD, thousands]

Depreciation [USD, thousands]

Non-cash lease expense [USD, thousands]

Impairment of operating lease asset [USD, thousands]

Bad debt provision [USD, thousands]

Stock-based compensation [USD, thousands]

Deferred tax [USD, thousands]

Other adjustments to net loss [USD, thousands]

Changes in Accounts receivable [USD, thousands]

Changes in Inventory [USD, thousands]

Changes in Prepaid and other assets [USD, thousands]

Changes in Accounts payable [USD, thousands]

Changes in Accrued and other expenses [USD, thousands]

Changes in Lease liabilities [USD, thousands]

Changes in Deferred revenue [USD, thousands]

Total adjustments to net loss [USD, thousands]

Net cash used for operating activities [USD, thousands]

Additions to property and equipment [USD, thousands]

Capitalization of internal-use software development costs [USD, thousands]

Net cash used for investing activities [USD, thousands]

Proceeds from option exercises pursuant to stock option plans [USD, thousands]

Proceeds from issuances of common stock, net of issuance costs [USD, thousands]

Net cash provided by financing activities [USD, thousands]

Decrease in cash and cash equivalents [USD, thousands]

Interest paid [USD, thousands]

Right-of-use asset obtained in exchange for operating lease liability [USD, thousands]

Gain on sale of business [USD, thousands]

Stock-based compensation expense [USD, thousands]

Other, net adjustments to net loss [USD, thousands]

Proceeds from sale of business, net of transaction costs [USD, thousands]

Additions to patents, technology and other [USD, thousands]

Issuance of common stock pursuant to Employee Stock Purchase Plan [USD, thousands]

Issuance of common stock pursuant to stock option plans [USD, thousands]

Cash and cash equivalents, beginning of period [USD, thousands]

Cash and cash equivalents, end of period [USD, thousands]

4b1ac0944da451637677edc570408344f5346b7817ef3dd01a89c916a7dff6e1

ICAD Inc (ICAD)

Financials