OneMedNet (NASDAQ: ONMD) Q1 loss, cash crunch and Nasdaq risk
OneMedNet Corporation reported Q1 2026 revenue of $96,000 and a net loss of $2.5 million, reflecting a 30% revenue decline and wider losses versus Q1 2025. Cost of revenue of $0.5 million produced a negative gross margin, and operating expenses remained high at $2.2 million.
Cash and cash equivalents fell to $233,000 as of March 31, 2026, against $5.6 million of total liabilities and a stockholders’ deficit of $4.1 million. Management disclosed substantial doubt about the company’s ability to continue as a going concern and is relying on equity financing, including a Yorkville SEPA draw and related-party subscriptions.
The company holds a small Bitcoin position, realizes gains and losses from sales, and received an April 2026 Nasdaq notice for noncompliance with the $1.00 minimum bid price rule, with a grace period to regain compliance.
Positive
- None.
Negative
- Severe liquidity and going concern risk: Q1 2026 cash was only $233,000 versus $5.6 million of liabilities and a $4.1 million stockholders’ deficit, and management states that these conditions raise substantial doubt about the company’s ability to continue as a going concern.
- Ongoing losses with negative gross margin: Revenue of $96,000 in Q1 2026 could not cover $476,000 of cost of revenue and $2.2 million of operating expenses, leading to a $2.5 million net loss and continued cash burn.
- Nasdaq listing risk: In April 2026, Nasdaq notified OneMedNet that it no longer meets the $1.00 minimum bid price requirement, and failure to regain compliance within the grace period could jeopardize its Nasdaq Capital Market listing.
Insights
OneMedNet faces acute liquidity pressure, ongoing losses, and Nasdaq listing risk.
OneMedNet generated Q1 2026 revenue of only $96,000 against a net loss of $2.45M, producing a negative gross margin and continued operating losses. Cash fell to $233,000 while total liabilities reached $5.59M, leaving a stockholders’ deficit of $4.08M.
Management explicitly states that these conditions raise substantial doubt about the ability to continue as a going concern. Operations are being funded by external capital, including $0.5M from Yorkville SEPA draws and $0.5M from a related-party equity subscription, plus subsequent April subscriptions totaling about $1.0M.
The April 2026 Nasdaq notice for noncompliance with the $1.00 minimum bid price adds listing risk if the share price does not recover before the October 2026 deadline. Future filings will clarify whether revenue growth, cost control, and additional financings are sufficient to address the going concern uncertainty.
Key Figures
Key Terms
going concern financial
Standby Equity Purchase Agreement financial
SEPA derivative liabilities financial
real-world data financial
Nasdaq Listing Rule 5550(a)(2) regulatory
emerging growth company regulatory
Earnings Snapshot
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
(Mark One)
| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For
the quarterly period ended
OR
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
FOR THE TRANSITION PERIOD FROM TO
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telephone number, including area code:
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Indicate
by check mark whether the Registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
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has been subject to such filing requirements for the past 90 days.
Indicate
by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule
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Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| ☒ | Smaller reporting company | ||
| Emerging growth company |
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
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As
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Table of Contents
| Page | |||
| CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS | ii | ||
| PART I. | FINANCIAL INFORMATION | ||
| Item 1. | Condensed Consolidated Financial Statements | 1 | |
| Unaudited Condensed Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025 | 1 | ||
| Unaudited Condensed Consolidated Statements of Operations for the three months ended March 31, 2026 and 2025 | 2 | ||
| Unaudited Condensed Consolidated Statements of Changes in Stockholders’ Deficit for the three months ended March 31, 2026 and 2025 | 3 | ||
| Unaudited Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2026 and 2025 | 4 | ||
| Notes to Unaudited Condensed Consolidated Financial Statements | 5 | ||
| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 14 | |
| Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 20 | |
| Item 4. | Controls and Procedures | 20 | |
| PART II. | OTHER INFORMATION | ||
| Item 1. | Legal Proceedings | 21 | |
| Item 1A. | Risk Factors | 21 | |
| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 21 | |
| Item 3. | Defaults Upon Senior Securities | 21 | |
| Item 4. | Mine Safety Disclosures | 21 | |
| Item 5. | Other Information | 21 | |
| Item 6. | Exhibits | 22 | |
| Signature | 23 | ||
| i |
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain statements that we make from time to time, including statements contained in this Quarterly Report on Form 10-Q (this “Report”) constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, and of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements other than statements of historical facts contained in this Report are forward-looking statements. The forward-looking statements in this Report are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition, and results of operations. In some cases, you can identify these forward-looking statements by terms such as “anticipate,” “believe,” “continue,” “could,” “depends,” “estimate,” “expects,” “intend,” “may,” “ongoing,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would” or the negative of those terms or other similar expressions, although not all forward-looking statements contain those words. We have based these forward-looking statements on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, strategy, short- and long-term business operations and objectives, and financial needs.
Our operations involve risks and uncertainties, many of which are outside our control, and any one of which, or a combination of which, could materially affect our results of operations and whether the forward-looking statements ultimately prove to be correct. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. Forward-looking statements in this Report include, without limitation, statements reflecting management’s expectations regarding future financial performance and operating expenditures (including our ability to continue as a going concern, to raise additional capital and to succeed in our future operations), expected growth, profitability and business outlook, liquidity, operating expenses, and enhancement of our internal control structure.
Forward-looking statements are only current predictions and are subject to known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from those anticipated by such statements. These factors include, among other things, the unknown risks and uncertainties that we believe could cause actual results to differ from these forward looking statements as set forth under the heading, “Risk Factors” and elsewhere in this Report and other documents we file with the SEC. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all of the risks and uncertainties that could have an impact on the forward-looking statements, including without limitation, risks and uncertainties relating to:
| ● | our projected financial position and estimated cash burn rate; | |
| ● | our estimates regarding expenses, future revenues and capital requirements; | |
| ● | our ability to continue as a going concern; | |
| ● | our ability to raise substantial additional capital in sufficient amounts or on acceptable terms to fund our operations and our business plan; | |
| ● | risks inherent with investing in Bitcoin, including Bitcoin’s volatility; | |
| ● | our ability to implement our Bitcoin treasury strategy and its effects on our business; | |
| ● | our ability to reverse the recent decline in our revenue and resume growing our revenue; | |
| ● | our ability to obtain and maintain intellectual property protection for our current products and services; |
| ii |
| ● | our ability to protect our intellectual property rights and the potential for us to incur substantial costs from lawsuits to enforce or protect our intellectual property rights; | |
| ● | the possibility that a third party may claim we have infringed, misappropriated or otherwise violated their intellectual property rights and that we may incur substantial costs and be required to devote substantial time defending against these claims; | |
| ● | our reliance on third-party suppliers; | |
| ● | the success of competing products or services that are or become available; | |
| ● | our ability to expand our organization to accommodate potential growth and our ability to retain and attract key personnel; | |
| ● | the potential for us to incur substantial costs resulting from lawsuits against us and the potential for these lawsuits to cause us to limit our commercialization of our products and services; and | |
| ● | changes in demand for our products and services as a result of geopolitical and/or macroeconomic conditions. |
These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described in “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025 and in other documents we file with the Securities and Exchange Commission. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this Report may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.
You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. Moreover, except as required by law, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. We undertake no obligation to update publicly any forward-looking statements for any reason after the date of this Report to conform these statements to actual results or to changes in our expectations.
You should read this Report and the documents that we incorporate by reference in this Form 10-Q with the understanding that our actual future results, levels of activity, performance and events and circumstances may be materially different from what we expect. As a result of a number of known and unknown risks and uncertainties, our actual results or performance may be materially different from those expressed or implied by these forward-looking statements including those described in this Report and in the “Risk Factors” section of our Annual Report on Form 10-K and other documents we file with the Securities and Exchange Commission.
| iii |
PART I—FINANCIAL INFORMATION
Item 1. Condensed Consolidated Financial Statements
ONEMEDNET CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
(Unaudited)
March 31, 2026 | December 31, 2025 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | $ | ||||||
| Investment in crypto assets – Bitcoin | ||||||||
| Accounts receivable, net | ||||||||
| Prepaid expenses and other current assets | ||||||||
| Total current assets | ||||||||
| Property and equipment, net | ||||||||
| Total assets | $ | $ | ||||||
| Liabilities and stockholders’ deficit | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued expenses | $ | $ | ||||||
| Deferred revenues | ||||||||
| Loans payable | ||||||||
| SEPA put option liability | ||||||||
| Total current liabilities | ||||||||
| Loans payable, net of current portion | ||||||||
| Warrant liabilities | ||||||||
| Total liabilities | ||||||||
| Commitments and contingencies (Note 13) | - | - | ||||||
| Stockholders’ deficit: | ||||||||
| Preferred Stock, par value $ | - | - | ||||||
| Common Stock, par value $ | ||||||||
| Additional paid-in capital | ||||||||
| Treasury stock, at cost, | ( | ) | ( | ) | ||||
| Accumulated deficit | ( | ) | ( | ) | ||||
| Total stockholders’ deficit | ( | ) | ( | ) | ||||
| Total liabilities and stockholders’ deficit | $ | 1,507 | $ | 2,151 | ||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
| 1 |
ONEMEDNET CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)
| 2026 | 2025 | |||||||
Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Revenue | ||||||||
| Subscription revenue | $ | - | $ | |||||
| Data delivery revenue | ||||||||
| Total revenue | ||||||||
| Cost of revenue | ||||||||
| Gross margin | ( | ) | ( | ) | ||||
| Operating expenses | ||||||||
| General and administrative | ||||||||
| Sales and marketing | ||||||||
| Research and development | ||||||||
| Total operating expenses | ||||||||
| Loss from operations | ( | ) | ( | ) | ||||
| Other (income) expense, net | ||||||||
| Interest expense | ||||||||
| Change in fair value of warrants | ( | ) | ||||||
| Change in fair value of convertible notes | - | ( | ) | |||||
| Change in fair value crypto assets – Bitcoin | ( | ) | ||||||
| Realized loss (gain) on sale of crypto assets – Bitcoin | ( | ) | ||||||
| Change in fair value of SEPA derivative liabilities | ( | ) | ( | ) | ||||
| Total other (income), net | ( | ) | ( | ) | ||||
| Net loss | $ | ( | ) | $ | ( | ) | ||
| Earnings per share: | ||||||||
| Basic and diluted net loss per common share outstanding | $ | ( | ) | $ | ( | ) | ||
| Basic and diluted weighted average number of common shares outstanding | ||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
| 2 |
ONEMEDNET CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN
STOCKHOLDERS’ DEFICIT
(In thousands, except share data)
(Unaudited)
Three Months Ended March 31, 2026
| Shares | Amount | Shares | Amount | Capital | Deficit | Deficit | ||||||||||||||||||||||
| Additional | Total | |||||||||||||||||||||||||||
| Common Stock | Treasury Stock | Paid-in | Accumulated | Stockholders’ | ||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Capital | Deficit | Deficit | ||||||||||||||||||||||
| Balances as of December 31, 2025 | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | |||||||||||||||
| Issuance of common stock in connection with Yorkville SEPA | - | - | - | - | ||||||||||||||||||||||||
| Issuance of common stock in connection with subscription agreement with related party | - | - | - | - | ||||||||||||||||||||||||
| Stock-based compensation expense | - | - | - | - | - | |||||||||||||||||||||||
| Net loss | - | - | - | - | - | ( | ) | ( | ) | |||||||||||||||||||
| Balances as of March 31, 2026 | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | |||||||||||||||
Three Months Ended March 31, 2025
| Additional | Total | |||||||||||||||||||||||||||
| Common Stock | Treasury Stock | Paid-in | Accumulated | Stockholders’ | ||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Capital | Deficit | Deficit | ||||||||||||||||||||||
| Balances as of December 31, 2024 | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | |||||||||||||||
| Issuance of common stock in connection with September 2024 private placement | - | - | - | - | - | - | ||||||||||||||||||||||
| Partial conversion of Yorkville Note | - | - | - | - | ||||||||||||||||||||||||
| Stock-based compensation expense | - | - | - | - | - | |||||||||||||||||||||||
| Net loss | - | - | - | - | - | ( | ) | ( | ) | |||||||||||||||||||
| Balances as of March 31, 2025 | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | |||||||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
| 3 |
ONEMEDNET CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
| 2026 | 2025 | |||||||
Three Months Ended March 31, |
||||||||
| 2026 | 2025 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | ( |
) | $ | ( |
) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | ||||||||
| Stock-based compensation expense | ||||||||
| Change in fair value of warrant liabilities | ( |
) | ||||||
| Change in fair value of convertible notes | - | ( |
) | |||||
| Change in fair value of crypto assets – Bitcoin | ( |
) | ||||||
| Change in fair value of SEPA derivative liabilities | ( |
) | ( |
) | ||||
| Realized loss (gain) on sale of crypto assets – Bitcoin | ( |
) | ||||||
| Non-cash interest | - | |||||||
| Change in operating assets and liabilities: | ||||||||
| Accounts receivable | ( |
) | ( |
) | ||||
| Prepaid expenses and other current assets | ( |
) | ||||||
| Accounts payable and accrued expenses | ||||||||
| Deferred revenues | ( |
) | ||||||
| Net cash used in operating activities | ( |
) | ( |
) | ||||
| Cash flows from investing activities: | ||||||||
| Purchases of property and equipment | ( |
) | ( |
) | ||||
| Sales of crypto assets – Bitcoin | ||||||||
| Net cash provided by investing activities | ||||||||
| Cash flows from financing activities: | ||||||||
| Proceeds from Yorkville SEPA | - | |||||||
| Proceeds from subscription agreement | - | |||||||
| Repayment of loans payable | ( |
) | ( |
) | ||||
| Net cash provided by (used in) financing activities | ( |
) | ||||||
| Net decrease in cash and cash equivalents | ( |
) | ( |
) | ||||
| Cash and cash equivalents at beginning of period | ||||||||
| Cash and cash equivalents at end of period | $ | $ | ||||||
| Supplemental disclosures of cash flow information: | ||||||||
| Cash paid for interest | $ | $ | ||||||
| Cash paid for taxes | $ | $ | - | |||||
| Supplemental disclosures of non-cash investing and financing activities: | ||||||||
| Issuance of common stock upon partial conversion of Yorkville Note | $ | - | $ | |||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
| 4 |
ONEMEDNET CORPORATION
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. Description of Business
Organization and Description of Business
OneMedNet Corporation (the “Company”) is a healthcare software company with solutions focused on digital medical image management, exchange, and sharing. The Company was founded in Delaware on November 20, 2015. The Company has been solely focused on creating solutions that simplify digital medical image management, exchange, and sharing. The Company has one wholly owned subsidiary, OneMedNet Technologies (Canada) Inc., incorporated on October 16, 2015 under the provisions of the Business Corporations Act of British Columbia whose functional currency is the Canadian dollar. The Company’s headquarters location is Eden Prairie, Minnesota.
On November 7, 2023, Data Knights Merger Sub, Inc. (“Merger Sub”), a Delaware corporation and a wholly owned subsidiary of Data Knights Acquisition Corp. (“Data Knights”), a Delaware corporation, merged with and into OneMedNet Solutions Corporation (formerly named OneMedNet Corporation) (“Legacy ONMD”), with Legacy ONMD surviving as a wholly owned subsidiary of Data Knights (the “Business Combination”). Following the consummation of the Business Combination, Data Knights was renamed to “OneMedNet Corporation.”
Basis of Presentation and Consolidation
The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules and regulations, certain notes or other financial information normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The interim unaudited condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal, recurring adjustments that are necessary to present fairly the Company’s results for the interim periods presented. The results from operations for the three months ended March 31, 2026 are not necessarily indicative of the results to be expected for the year ending December 31, 2026, or for any future annual or interim period.
The accompanying interim unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes for the year ended December 31, 2025 in the Company’s Annual Report on Form 10-K, filed with the SEC on March 30, 2026 (the “Form 10-K”).
The interim unaudited condensed consolidated financial statements include the consolidated accounts of the Company’s wholly owned subsidiary, OneMedNet Technologies (Canada) Inc. All significant intercompany transactions have been eliminated in consolidation.
Liquidity and Going Concern
The
Company has incurred recurring net losses since its inception, including $
To continue and expand its operations, the Company will be required to, and management plans to, raise additional working capital through equity or debt offerings and ultimately hopes to attain profitable operations to fulfill its operating and capital requirements for at least 12 months from the date of the issuance of the condensed consolidated financial statements. However, the Company may not be able to secure such financing in a timely manner or on favorable terms, if at all. Furthermore, if the Company issues equity securities to raise additional funds, its existing stockholders may experience dilution, and the new equity securities may have rights, preferences and privileges senior to those of the Company’s existing stockholders. The condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of assets and liabilities that might be necessary should the Company be unable to continue as a going concern. The Company’s continuation as a going concern is dependent upon its ability to continue receiving working capital cash payments and generating cash flow from operations.
| 5 |
Risks and Uncertainties
The Company is subject to risks common to companies in the markets it serves, including, but not limited to, global economic and financial market conditions, fluctuations in customer demand, acceptance of new products, development by its competitors of new technological innovations, dependence on key personnel, and protection of proprietary technology.
In addition, the Company has invested in Bitcoin, which is a crypto asset. Crypto assets are loosely regulated and there is no central marketplace for currency exchange. Supply is determined by a computer code, not by a central bank, and prices have been extremely volatile. Certain crypto asset exchanges have been closed due to fraud, failure or security breaches. Any of the Company’s crypto assets that reside on an exchange that shuts down may be lost. Several factors may affect the price of crypto assets, including, but not limited to: supply and demand, investors’ expectations with respect to the rate of inflation, interest rates, currency exchange rates or future regulatory measures (if any) that restrict the trading of crypto assets, and the use of crypto assets as a form of payment. There is no assurance that crypto assets will maintain their long-term value in terms of purchasing power in the future, or that acceptance of crypto asset payments by mainstream retail merchants and commercial businesses will continue to grow.
As crypto assets have grown in popularity and market size, various countries and jurisdictions have begun to develop regulations governing the crypto asset industry. To the extent future regulatory actions or policies limit the ability to exchange crypto assets or utilize them for payments, the demand for crypto assets could be reduced. Furthermore, regulatory actions may limit the ability of end-users to convert crypto assets into fiat currency (e.g., U.S. dollars) or use crypto assets to pay for goods and services. Such regulatory actions or policies could result in a reduction of demand, and in turn, a decline in the underlying crypto asset unit prices.
The effect of any future regulatory change on crypto assets in general is impossible to predict, but such change could be substantial and adverse to the Company and the value of the Company’s investments in crypto assets.
Crypto assets are not insured or protected under the Federal Deposit Insurance Corporation (“FDIC”) or the Securities Investor Protection Company (“SIPC”). Accordingly, with respect to its Bitcoin investment, the Company does not enjoy the protections of other assets covered by the FDIC or SIPC.
2. Summary of Significant Accounting Policies
Except as described below, the accounting policies of the Company are set forth in Note 2 to the consolidated financial statements contained in the Form 10-K, and the accounting policies followed by the Company for interim financial reporting are consistent with the accounting policies therein.
Emerging Growth Company Status
The Company is an “emerging growth company”, as defined in the Jumpstart Our Business Startups Act of 2012 (“JOBS Act”). Under the JOBS Act, emerging growth companies can take advantage of an extended transition period for complying with new or revised accounting standards, delaying the adoption of these accounting standards until they would apply to private companies. The Company has elected to use this extended transition period for complying with certain new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that it (1) is no longer an emerging growth company or (2) affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act.
Reclassification
Certain prior period amounts have been reclassified to conform to the current year presentation. These reclassifications had no impact on the Company’s net loss, net cash flows, or stockholders’ deficit.
| 6 |
Accounting Pronouncements Not Yet Adopted
In November 2024, the FASB issued ASU 2024-03, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”), which requires public entities, at annual and interim reporting periods, to disclose in a tabular format additional information about specific expense categories in the notes to the consolidated financial statements. ASU 2024-03 is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2024-03 on the presentation of its condensed consolidated financial statements and footnotes.
The Company has reviewed other recently issued accounting pronouncements and concluded that either they are not applicable to the business or no material effect is expected upon future adoption.
3. Segment Information
Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision maker (“CODM”), or decision-making group, in deciding how to allocate resources and in assessing performance. The Company considers its chief executive officer to be the Company’s CODM. The CODM manages its operations and allocates resources based on the Company’s consolidated results and therefore operates as one segment.
The Company’s operations consist of its real-world data (“RWD”) platform, which enables life sciences and healthcare customers to access curated clinical and imaging datasets, as well as its legacy data exchange (BEAM) platform that facilitates the secure exchange and aggregation of medical imaging data. The Company decommissioned its legacy BEAM platform in May 2025 as part of its strategic transition to a unified real-world data platform. Revenue associated with the BEAM platform was generated through the date of decommissioning and will not continue in future periods.
The Company’s method for measuring segment profitability is operating loss, which the CODM uses to assess performance and make decisions for resource allocation, consistent with the measurement principles for operating loss as reported on the Company’s consolidated statements of operations. The CODM uses consolidated operating loss to set budgets, evaluate margins, review actual results, and to make decisions whether to engage in capital management transactions.
The significant expenses regularly reviewed by the CODM are consistent with those reported on the Company’s consolidated statements of operations, and expenses are not regularly reviewed on a more disaggregated basis for purposes of assessing segment performance and deciding how to allocate resources.
The Company’s disaggregation of revenue by major product offering is consistent with its presentation on the Company’s consolidated statements of operations. The table below provides the Company’s total revenue by geographic region based on the location of the customer (in thousands):
Schedule of Revenue by Geographic Region
| 2026 | 2025 | |||||||
Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Americas | $ | $ | ||||||
| Rest of World | ||||||||
| Total | $ | $ | ||||||
| 7 |
4. Crypto Assets Held
The Company’s crypto assets are comprised solely of Bitcoin. In accordance with ASC Topic 820, Fair Value Measurement, the Company measures the fair value of its Bitcoin based on the quoted end-of-day price on the measurement date for a single Bitcoin on an active trading platform, River.com. Management has determined that River.com, an active exchange market, represents a principal market for Bitcoin and the end-of-day quoted price is both readily available and representative of fair value (Level 1 inputs). The following table sets forth the units held, cost basis, and fair value of its investments in crypto assets, as shown on the condensed consolidated balance sheets (in thousands):
Schedule of Crypto Assets Held
| March 31, 2026 | ||||||||||||
| Units | Cost Basis | Fair Value | ||||||||||
| Crypto assets held: | ||||||||||||
| Bitcoin | $ | $ | ||||||||||
| Total | $ | $ | ||||||||||
| December 31, 2025 | ||||||||||||
| Units | Cost Basis | Fair Value | ||||||||||
| Crypto assets held: | ||||||||||||
| Bitcoin | $ | $ | ||||||||||
| Total | $ | $ | ||||||||||
The following table presents a reconciliation of the fair values of the Company’s investments in crypto assets for the three months ended March 31, 2026 (in thousands):
Schedule of Crypto Assets Reconciliation of Fair Values
| Bitcoin | ||||
| Balance, December 31, 2025 | $ | |||
| Dispositions | ( | ) | ||
| Unrealized loss, net | ||||
| Balance, March 31, 2026 | $ | |||
Dispositions
are the result of sales of Bitcoin. During the three months ended March 31, 2026, the Company had Bitcoin dispositions of $
5. Accounts Payable and Accrued Expenses
Accounts payable and accrued expenses consisted of the following (in thousands):
Schedule of Accounts Payable and Accrued Expenses
March 31, 2026 | December 31, 2025 | |||||||
| As of | ||||||||
March 31, 2026 | December 31, 2025 | |||||||
| Professional fees | $ | $ | ||||||
| Payroll liabilities | ||||||||
| Data provider costs | ||||||||
| Other | ||||||||
| Total | $ | $ | ||||||
6. Debt
The following table summarizes outstanding debt for the periods indicated (in thousands):
Schedule of Outstanding Debt
March 31, 2026 | December 31, 2025 | |||||||
| As of | ||||||||
March 31, 2026 | December 31, 2025 | |||||||
| Loans payable | ||||||||
| Stock repurchase loan | $ | $ | ||||||
| Insurance premium loan | ||||||||
| Extension loans | ||||||||
| Loans payable | ||||||||
| Long-term loans payable | ||||||||
| Extension loans | ||||||||
| Stock repurchase loan | ||||||||
| Long- term loans payable | ||||||||
| Total | $ | $ | ||||||
| 8 |
7. Stockholders’ Deficit
SEPA Draws
As
further described in the Form 10-K, the Company entered into a Standby Equity Purchase Agreement (“SEPA”) with YA II PN,
LTD, a Cayman Islands exempt limited partnership managed by Yorkville Advisors Global, LP (“Yorkville”). Under the SEPA,
the Company has the right to sell to Yorkville up to $
The
fair value of the derivative liability related to the embedded put option was estimated at $
During
the three months ended March 31, 2026, the Company delivered two advance notices for the sale of
The
estimated issuance date fair value and remeasurement adjustment for the embedded put option and embedded forward option are presented
as a single line within other (income) expense, net in the accompanying consolidated statements of operations under the caption change
in fair value of SEPA derivative liabilities. The embedded put option fair value adjustment was a gain of $
Subscription Agreement – Related Party
On
February 6, 2026, the Company entered into a subscription agreement with a related party investor pursuant to which the Company agreed
to issue and sell
ARC Forward Contract
As
of March 31, 2026 and December 31, 2025, the Company had an outstanding forward contract to issue
| 9 |
8. Net Loss per Share
The Company excluded the following potential shares of common stock, presented based on amounts outstanding at each period end, from the computation of diluted net loss per share for the periods indicated because including them would have had an anti-dilutive effect:
Schedule of Antidilutive Earnings Per Share
| 2026 | 2025 | |||||||
| Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Restricted stock units | ||||||||
| Warrants for Common Stock | ||||||||
| Convertible debt | - | |||||||
| Deferred underwriter fees | - | |||||||
| Loan extensions | ||||||||
| Total common stock equivalents | ||||||||
9. Stock-Based Compensation
The Company recorded stock-based compensation expense in the following categories on the accompanying condensed consolidated statements of operations for the periods presented (in thousands):
Schedule of Restricted Stock Awards
| 2026 | 2025 | |||||||
| Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Cost of revenue | $ | $ | ||||||
| General and administrative | ||||||||
| Sales and marketing | ||||||||
| Research and development | ||||||||
| Total stock-based compensation expense | $ | $ | ||||||
10. Stock Warrants
The Company has the following warrants outstanding for the periods presented:
Schedule of Warrants Outstanding
March 31, 2026 |
December 31, 2025 |
|||||||
| As of | ||||||||
March 31, 2026 |
December 31, 2025 |
|||||||
| Liability Classified Warrants | ||||||||
| Business Combination Warrants | ||||||||
| PIPE Warrants | ||||||||
| Subtotal | ||||||||
| Equity Classified Warrants | ||||||||
| Public Warrants | ||||||||
| Private Placement Warrants | ||||||||
| Subtotal | ||||||||
| Grand Total | ||||||||
| Warrants outstanding | ||||||||
| 10 |
11. Fair Value Measurements
The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis, inclusive of related party (in thousands):
Schedule of Assets and Liabilities Measured at Fair Value
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| March 31, 2026 | ||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Assets: | ||||||||||||||||
| Money market funds | $ | $ | - | $ | - | $ | ||||||||||
| Bitcoin | - | - | ||||||||||||||
| Total assets, at fair value | $ | $ | - | $ | - | $ | ||||||||||
| Liabilities: | ||||||||||||||||
| Business Combination Warrants | $ | - | $ | - | $ | $ | ||||||||||
| PIPE Warrants | - | - | ||||||||||||||
| SEPA put option liability | - | - | ||||||||||||||
| Total liabilities, at fair value | $ | - | $ | - | $ | $ | ||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| December 31, 2025 | ||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Assets: | ||||||||||||||||
| Money market funds | $ | $ | - | $ | - | $ | ||||||||||
| Bitcoin | - | - | ||||||||||||||
| Total assets, at fair value | $ | $ | - | $ | - | $ | ||||||||||
| Liabilities: | ||||||||||||||||
| Business Combination Warrants | $ | - | $ | - | $ | $ | ||||||||||
| PIPE Warrants | - | - | ||||||||||||||
| SEPA put option liability | - | - | ||||||||||||||
| Total liabilities, at fair value | $ | - | $ | - | $ | $ | ||||||||||
Business Combination Warrants and PIPE Warrants
The following table presents the changes in the Business Combination Warrants and PIPE Warrants measured at fair value during the three months ended March 31, 2026 (in thousands):
Schedule of Warrants and Notes Measured at Fair Value
Business Combination Warrants | PIPE Warrants | |||||||
| Balance, December 31, 2025 | $ | $ | ||||||
| Changes in fair value | ( | ) | ( | ) | ||||
| Balance, March 31, 2026 | $ | $ | ||||||
The Company remeasured the fair value of the Business Combination Warrants and PIPE Warrants at March 31, 2026 using the Black-Scholes option-pricing model with the following assumptions:
Schedule of Fair Value Assumptions and Valuation
| As of March 31, 2026 | ||||||||
| PIPE | Business Combination | |||||||
| Warrants | Warrants | |||||||
| Stock price | $ | $ | ||||||
| Exercise price | $ | $ | ||||||
| Expected volatility | % | % | ||||||
| Weighted average risk-free rate | % | % | ||||||
| Expected dividend yield | - | - | ||||||
| Warrants measurement input | - | - | ||||||
| Expected term (in years) | ||||||||
| 11 |
The Company remeasured the fair value of the Business Combination Warrants and PIPE Warrants at December 31, 2025 using the Black-Scholes option-pricing model with the following assumptions:
| Warrants | Warrants | |||||||
| As of December 31, 2025 | ||||||||
| PIPE | Business Combination | |||||||
| Warrants | Warrants | |||||||
| Stock price | $ | $ | ||||||
| Exercise price | $ | $ | ||||||
| Expected volatility | % | % | ||||||
| Weighted average risk-free rate | % | % | ||||||
| Expected dividend yield | % | % | ||||||
| Warrants measurement input | % | % | ||||||
| Expected term (in years) | ||||||||
SEPA Derivative Liability
The following table presents the changes in the SEPA derivative liabilities measured at fair value during the three months ended March 31, 2026 (in thousands):
| SEPA
Put Option Liability |
SEPA
Forward Option Liability |
|||||||
| Balance, December 31, 2025 | $ | $ | - | |||||
| Changes in fair value | ( |
) | ( |
) | ||||
| Conversions to Common Stock | - | |||||||
| Balance, March 31, 2026 | $ | $ | - | |||||
The estimated fair value of the SEPA put option derivative liability was determined using a Monte Carlo simulation model in order to project the future path of the Company’s stock price over the commitment period with the following assumptions:
March 31, 2026 | December 31, 2025 | |||||||
| As of | ||||||||
March 31, 2026 | December 31, 2025 | |||||||
| Term (in years) | ||||||||
| Starting stock price | $ | $ | ||||||
| Expected volatility | % | % | ||||||
| Risk-free rate | % | % | ||||||
| Derivative liability | % | % | ||||||
The SEPA forward option liability was deemed to have no value at March 31, 2026 and December 31, 2025 as there were no outstanding notices for the sale of the Company’s Common Stock.
12. Related Party Transactions
Subscription
Agreement – As described in Note 7, the Company issued
Accounting Services – The Company engages an accounting firm to provide accounting and bookkeeping services, which is majority owned by the Company’s Chief Financial Officer (“CFO”), who serves as an independent contractor to the Company.
For
the three months ended March 31, 2026 and 2025, the Company incurred expenses of $
As of March 31, 2026 and December 31, 2025, there were no amounts payable to the accounting firm.
| 12 |
Software Development Services – The Company engages a software development company to provide software development services, which is wholly owned by the Company’s Chief Technology Officer (“CTO”), who is an employee of the Company.
For
the three months ended March 31, 2026 and 2025, the Company incurred expenses of $
The Company believes that the terms of its arrangements with these vendors are consistent with those that would have been obtained from unaffiliated third parties.
13. Commitments and Contingencies
Lease Agreement
The
Company has a month-to-month lease for a suite at a cost of $
Litigation
From time to time, the Company may become involved in legal proceedings arising in the ordinary course of business. Liabilities for loss contingencies arising from claims, assessments, litigation, fines, penalties, and other sources are recognized, if and when it is probable that a liability has been incurred and the amount can be reasonably estimated.
On November 6, 2025, ARC Group Limited and ARC Opportunity Fund Limited (together, “ARC”) filed a complaint against the Company and certain officers of the Company in the District Court of Minnesota, Fourth Judicial District (the “ARC complaint”). The ARC complaint alleges that the Company has breached certain contracts that the Company entered into with ARC before the closing of the Business Combination, including certain financial advisory contracts entered into by the Company at the direction of the sponsor of the Business Combination (the “sponsor”; the Company notes that the sponsor is an affiliate of ARC). Specifically, the ARC complaint asserts that the Company breached these contracts by issuing certain shares of Common Stock to ARC contemporaneously with the closing of the Business Combination and improperly cancelling those shares after the Business Combination as well as by failing to pay ARC certain cash amounts when due. The ARC complaint seeks an order of specific performance requiring the Company to reinstate the cancelled shares of Common Stock or, in the alternative, compensatory damages for such cancellation as well as payment of the other purported amounts due. The ARC complaint also asserts tort claims arising out of the Company’s actions and seeks compensatory damages (plus prejudgment interest) and punitive damages in connection with such claims but does not specify an amount of damages.
The
Company notes that no shares of Common Stock were actually issued to ARC prior to or contemporaneously with the closing of the Business
Combination and that, as of March 31, 2026 and as previously disclosed on its Form 10-K for the fiscal year ended December 31, 2025,
the Company has recorded a forward contract to issue
The Company was not subject to any other material legal proceedings during the three months ended March 31, 2026 and 2025.
14. Subsequent Events
The Company has evaluated subsequent events occurring through May 15, 2026, the date the condensed consolidated financial statements were issued, for events requiring recording or disclosure in the Company’s condensed consolidated financial statements.
In
April 2026, the Company entered into subscription agreements with two related party investors pursuant to which the Company agreed to
issue and sell an aggregate of
In
April 2026, the Company issued
| 13 |
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following discussion and analysis are intended to help you understand our business, financial condition, results of operations, liquidity, and capital resources. You should read this discussion in conjunction with the Company’s consolidated financial statements and related notes included elsewhere in this Report and in the Form 10-K.
In addition to historical financial analysis, this discussion and analysis contains forward-looking statements based upon current expectations that involve risks, uncertainties, and assumptions, as described under the heading “Cautionary Note Regarding Forward-Looking Statements.” Actual results and timing of selected events may differ materially from those anticipated in these forward-looking statements as a result of various factors, risks and uncertainties, including those set forth under “Risk Factors” included elsewhere (or incorporated by reference) in this Report and in the Form 10-K. Unless the context otherwise requires, references in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” to “OneMedNet”, “we”, “us”, “our,” and “the Company” are intended to mean the business and operations of OneMedNet Corporation and its consolidated subsidiary following the completion of the business combination on November 7, 2023 involving OneMedNet Solutions Corporation (formerly named OneMedNet Corporation) (“Legacy ONMD”), with Legacy ONMD surviving as a wholly owned subsidiary of Data Knights Acquisition Corp. (“Data Knights”) (the “Business Combination”).
Company Overview
We provide innovative solutions that unlock the significant value contained within the clinical image archives of healthcare providers. We employ our 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 our extensive federated provider network, together with our technology and in-house clinical expertise, OneMedNet successfully meets the most rigorous Real World Data life science requirements.
Nasdaq Compliance
On April 14, 2026, the Company received notice from Nasdaq indicating that the Company, based on the closing bid price of the Company’s common stock for the last 30 consecutive business days, is not in compliance with the $1.00 minimum bid price requirement for continued listing on The Nasdaq Capital Market, as set forth in Nasdaq Listing Rule 5550(a)(2) (the “Bid Price Rule”). In accordance with Nasdaq Listing Rule 5810(c)(3)(A), the Company has a period of 180 calendar days, or until October 12, 2026, to regain compliance with the Bid Price Rule. To regain compliance, the minimum bid price of the Company’s common stock must meet or exceed $1.00 per share for a minimum of ten consecutive business days during this 180-calendar day grace period. In the event the Company does not regain compliance with the Bid Price Rule by October 12, 2026, the Company may be eligible for an additional 180-calendar day compliance period. The Company intends to continue to actively monitor the bid price of its common stock and may, if appropriate, consider implementing available options to regain compliance with the Bid Price Rule.
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 is sold on a fixed fee basis based on the number of data units and the cost per data unit committed to in the customer contract. Revenue is recognized when the data is delivered to the customer. BEAM revenue is subscription-based revenue that is recognized ratably over the subscription period committed to by the customer. The Company invoices its BEAM customers quarterly or annually in advance with the customer contracts automatically renewing unless the customer issues a cancellation notice. The BEAM platform was decommissioned in May 2025, and no revenue was generated from this platform thereafter.
| 14 |
The Company excludes from revenue taxes collected from a customer that are assessed by a governmental authority and imposed on and concurrent with a specific revenue-producing transaction. The transaction price for the products is the invoiced amount. Advance billings from contracts are deferred and recognized as revenue when earned. Deferred revenue consists of payments received in advance of performance under the contract. Such amounts are generally recognized as revenue over the contractual period. The Company receives payments from customers based upon contractual billing schedules. Accounts receivable are recorded when the right to consideration becomes unconditional. Payment terms on invoiced amounts typically range from zero to 90 days, with typical terms of 30 days.
Cost of Revenue
Our cost of revenue is composed of our distinct performance obligations of hosting, labor, and data cost.
General and Administrative
General and administrative functions include finance, legal, operations, human resources, and information technology support. These functions include costs for items such as salaries and benefits and other personnel-related costs, maintenance and supplies, professional fees for external legal, accounting, and other consulting services, and depreciation expense.
Research and Development
Costs incurred in the research and development of our products are expensed as incurred. Research and development costs 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
Our sales and marketing costs consist of labor and tradeshow costs.
Other (Income) Expenses, Net
Interest Expense
Interest expense consists of interest incurred on our outstanding debt facilities, including loans with related parties, deferred underwriter fees and insurance premiums paid in exchange for a note payable.
Change in Fair Value of Warrants
We have outstanding warrants that were issued at the closing of the Business Combination, which are accounted for as liabilities at fair value. These warrants are subsequently re-measured at fair value on our consolidated balance sheets at the end of each reporting period and at settlement, as applicable, and changes in fair value are recognized in the consolidated statements of operations.
Change in Fair Value of Convertible Notes
We have elected the fair value option of accounting for the PIPE Notes issued in the Business Combination and the Yorkville Note issued with the SEPA. These instruments contained embedded derivatives that would require bifurcation and separate accounting; therefore, we made the election to measure the entire contingently convertible debt instruments, including accrued interest, at fair value. These instruments are subsequently re-measured at fair value on our consolidated balance sheets at the end of each reporting period and at settlement, as applicable, and changes in fair value are recognized in the consolidated statements of operations. The PIPE Notes and Yorkville Note were both settled in 2025 and were no longer outstanding as of December 31, 2025.
| 15 |
Change in Fair Value of Crypto Assets – Bitcoin
We have adopted a Bitcoin strategy on the balance sheets as a forward-looking approach to corporate treasury management that incorporates digital currencies. Our Bitcoin holdings are held at fair value on the consolidated balance sheets and are re-measured at the end of each reporting period based on the quoted end-of-day price provided by a reputable and liquid exchange.
Realized Loss (Gain) on Sale of Crypto Assets – Bitcoin
As part of our Bitcoin strategy, we routinely sell quantities held as part of our corporate treasury strategy to fund operations as needed. We recognize a realized gain upon sale when the price of Bitcoin is higher than its initial purchase price.
Change in Fair Value of SEPA Derivative Liabilities
We entered into a SEPA arrangement with Yorkville during 2024 that gave us the right, but not the obligation, to require Yorkville to purchase shares over a two-year commitment period, subject to volume limits. The put option is recognized at inception and the forward option is recognized upon issuance of notice for the sale of the Company’s Common Stock. The liabilities are subsequently re-measured at fair value on our consolidated balance sheets at the end of each reporting period, with changes in fair value recognized in the consolidated statements of operations.
Results of Operations
Comparison of the Three Months Ended March 31, 2026 and 2025
The following table sets forth our condensed consolidated statements of operations data for the periods presented:
Three Months Ended March 31, | Change | |||||||||||||||
| 2026 | 2025 | $ | % | |||||||||||||
| Revenue | ||||||||||||||||
| Subscription revenue | $ | - | $ | 58 | $ | (58 | ) | -100 | % | |||||||
| Web imaging revenue | 96 | 79 | 17 | 22 | % | |||||||||||
| Total revenue | 96 | 137 | (41 | ) | -30 | % | ||||||||||
| Cost of revenue | 476 | 361 | 115 | 32 | % | |||||||||||
| Gross margin | (380 | ) | (224 | ) | (156 | ) | 70 | % | ||||||||
| Operating expenses | ||||||||||||||||
| General and administrative | 1,483 | 1,362 | 121 | 9 | % | |||||||||||
| Sales and marketing | 378 | 290 | 88 | 30 | % | |||||||||||
| Research and development | 311 | 348 | (37 | ) | -11 | % | ||||||||||
| Total operating expenses | 2,172 | 2,000 | 172 | 9 | % | |||||||||||
| Loss from operations | (2,552 | ) | (2,224 | ) | (328 | ) | 15 | % | ||||||||
| Other (income) expense, net | ||||||||||||||||
| Interest expense | 10 | 31 | (21 | ) | -68 | % | ||||||||||
| Change in fair value of warrants | (16 | ) | 3 | (19 | ) | -633 | % | |||||||||
| Change in fair value of convertible notes | - | (163 | ) | 163 | -100 | % | ||||||||||
| Change in fair value of crypto assets – Bitcoin | (102 | ) | 662 | (764 | ) | -115 | % | |||||||||
| Realized loss (gain) on sale of crypto assets – Bitcoin | 188 | (531 | ) | 719 | -135 | % | ||||||||||
| Change in fair value of SEPA derivative liabilities | (179 | ) | 324 | 145 | -45 | % | ||||||||||
| Total other income, net | (99 | ) | (322 | ) | (223 | ) | -69 | % | ||||||||
| Net loss | $ | (2,453 | ) | $ | (1,902 | ) | $ | (551 | ) | 29 | % | |||||
| 16 |
Revenue
Three Months Ended March 31, | Change | |||||||||||||||
| 2026 | 2025 | $ | % | |||||||||||||
| Subscription revenue (BEAM) | $ | - | $ | 58 | $ | (58 | ) | -100 | % | |||||||
| Web imaging revenue (Real-World Data) | 96 | 79 | 17 | 22 | % | |||||||||||
| Total | $ | 96 | $ | 137 | $ | (41 | ) | -30 | % | |||||||
Total revenue decreased by 30% or $0.04 million during the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The decrease was primarily due to a $0.06 million decrease in subscription revenue (BEAM) as a direct result of decommissioning this platform in May 2025, which is partially offset by a $0.02 million increase in data delivery revenue (BEAM) as a result of our strategic transition to a unified real-world data platform, which has led to growth in our customer base and thus a higher volume of data deliveries during the three months ended March 31, 2026.
Cost of Revenue
| Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Cost of revenue | 476 | 361 | ||||||
| % of revenue | 496 | % | 264 | % | ||||
Cost of revenue was $0.5 million for the three months ended March 31, 2026, compared to $0.4 million for the three months ended March 31, 2025, an increase of $0.1 million, or 32%. The increase of $0.1 million was primarily due to an increase in data and curation charges to support the increase in data delivery revenue generated by our iRWD platform.
General and Administrative
General and administrative expenses were $1.5 million for the three months ended March 31, 2026, compared to $1.4 million for the three months ended March 31, 2025, an increase of $0.1 million, or 9%. The increase of $0.1 million was primarily due to an increase of $0.1 million in share-based compensation expense as we made a significant number of RSU grants in the fourth quarter of 2025 that were not outstanding during the three months ended March 31, 2025.
Sales and Marketing
Sales and marketing expenses were $0.4 million for the three months ended March 31, 2026, compared to $0.3 million for the three months ended March 31, 2025, an increase of $0.1 million, or 30%. The increase of $0.1 million was primarily due to an increase of $0.1 million in salary and related personnel costs, which is driven by increased headcount to support iRWD sales growth.
Research and Development
Research and development expenses for the three months ended March 31, 2026 were generally consistent with research and development expenses for the three months ended March 31, 2025.
Interest Expense
Interest expense for the three months ended March 31, 2026 was generally consistent with interest expense for the three months ended March 31, 2025.
| 17 |
Change in Fair Value of Warrants
The change in fair value of warrants is composed of the re-measurement adjustment for our liability-classified warrants that were issued in connection with the Business Combination. The change is mainly due to the resulting fluctuations in the market price of shares of Common Stock.
Change in Fair Value of Convertible Notes
The change in fair value of convertible notes is composed of the re-measurement adjustment for the PIPE Notes and Yorkville Note (each, as defined in the Form 10-K) which are carried at fair value. The change is mainly due to the resulting fluctuations in the market price of shares of Common Stock. Both instruments were converted or repaid in the second quarter of 2025; therefore, no re-measurement adjustment was required for the three months ended March 31, 2026.
Change in Fair Value of Crypto Assets – Bitcoin
The change in fair value of crypto assets – Bitcoin during the three months ended March 31, 2026 and 2025 reflects the change in the price of Bitcoin.
Realized Loss (Gain) on Sale of Crypto Assets – Bitcoin
The realized loss (gain) on sale of crypto assets – Bitcoin during the three months ended March 31, 2026 and 2025 reflects the change in the market price of Bitcoin upon sale compared to its purchase price.
Change in Fair Value of SEPA Derivative Liabilities
The change in fair value of SEPA derivative liabilities is primarily driven by expected sales of our Common Stock to Yorkville and projections on the future path of the Company’s stock price during the commitment period. The gain for the three months ended March 31, 2026 is primarily driven by us delivering advance notices under the SEPA leading to less availability at the end of the reporting period.
Liquidity and Capital Resources
As of March 31, 2026, our principal sources of liquidity were proceeds from related party investors, private placement transactions, investments in Bitcoin and cash received from customers.
The following table shows net cash and cash equivalents used in operating activities, net cash and cash equivalents used in investing activities, and net cash and cash equivalents provided by financing activities during the periods presented:
| Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Net cash provided by (used in) | ||||||||
| Operating activities | $ | (1,542 | ) | $ | (1,854 | ) | ||
| Investing activities | 352 | 1,920 | ||||||
| Financing activities | 838 | (94 | ) | |||||
Operating Activities
Our net cash and cash equivalents used in operating activities consists of net loss adjusted for certain non-cash items, including depreciation and amortization, stock-based compensation expense, changes in fair value of liability classified financial instruments, as well as changes in operating assets and liabilities. The primary changes in working capital items, such as the changes in accounts receivable and deferred revenue, result from the difference in timing of payments from our customers related to contract performance obligation. This may result in an operating cash flow source or use for the period, depending on the timing of payments received as compared to the fulfillment of the performance obligation.
| 18 |
During the three months ended March 31, 2026, we used $1.5 million of cash in operating activities, primarily resulting from our net loss of $2.5 million, offset by non-cash charges of $0.3 million and cash provided by changes in our operating assets and liabilities of $0.6 million.
During the three months ended March 31, 2025, we used $1.9 million of cash in operating activities, primarily resulting from our net loss of $1.9 million and non-cash charges of $0.1 million, offset by cash provided by changes in our operating assets and liabilities of $0.2 million.
Investing Activities
Our investing activities have consisted primarily of property and equipment purchases and Bitcoin purchases and sales.
During the three months ended March 31, 2026, net cash provided by investing activities was $0.4 million, primarily consisting of proceeds from Bitcoin sales of $0.4 million.
During the three months ended March 31, 2025, net cash provided by investing activities was $1.9 million, primarily consisting of proceeds from Bitcoin sales of $1.9 million.
Financing Activities
During the three months ended March 31, 2026, net cash provided by financing activities was $0.8 million, consisting of $0.5 million in net proceeds from the Yorkville SEPA, $0.5 million in net proceeds from a related party subscription agreement, partially offset by repayments of $0.1 million for our loans payable.
During the three months ended March 31, 2025, net cash used in financing activities was $0.1 million, consisting of repayments of $0.1 million for our loans payable.
Contractual Obligations and Commitments and Going Concern Outlook
Currently, management does not believe that our cash and cash equivalents are sufficient to meet our foreseeable cash needs for at least the next 12 months. Our foreseeable cash needs, in addition to our recurring operating expenses, include our expected capital expenditures to support the expansion of our infrastructure and workforce, interest expense and minimum contractual obligations. Management intends to raise cash for operations through debt and equity offerings. As a result of the Company’s recurring loss from operations and the need for additional financing to fund its operating and capital requirements there is uncertainty regarding the Company’s ability to maintain liquidity sufficient to operate its business effectively, which raises substantial doubt as to the Company’s ability to continue as a going concern.
Our future capital requirements will depend on many factors, including our growth rate, the timing and extent of spending to support research and development efforts, the expansion of sales and marketing activities, the introduction of new and enhanced product and service offerings, and the cost of any future acquisitions of technology or businesses. In the event that additional financing is required from outside sources, we may be unable to raise the funds on acceptable terms, if at all.
The following table summarizes our material cash requirements as of March 31, 2026:
| Payments due in: | ||||||||||||
| Total | Less than 1 year | 1-3 years | ||||||||||
| Accounts payable & accrued expenses | $ | 3,941 | $ | 3,941 | $ | - | ||||||
| Loans payable | 837 | 661 | 176 | |||||||||
| $ | 4,778 | $ | 4,602 | $ | 176 | |||||||
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Critical Accounting Policies and Estimates
Our management’s discussion and analysis of financial condition and results of operations is based on our consolidated financial statements which have been prepared in accordance with GAAP. In preparing our financial statements, we make estimates, assumptions, and judgments that can have a significant impact on our reported revenue, results of operations, and net income or loss, as well as on the value of certain assets and liabilities on our balance sheet during and as of the reporting periods. These estimates, assumptions, and judgments are necessary because future events and their effects on our results of operations and the value of our assets cannot be determined with certainty and are made based on our historical experience and on other assumptions that we believe to be reasonable under the circumstances. These estimates may change as new events occur or additional information is obtained, and we may periodically be faced with uncertainties, the outcomes of which are not within our control and may not be known for a prolonged period of time. Because the use of estimates is inherent in the financial reporting process, actual results could differ from those estimates.
For a discussion of our critical accounting estimates, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Form 10-K, the notes to our audited financial statements appearing in the Form 10-K, and the notes to the financial statements appearing elsewhere in this Report. Except as described in this Report, there have been no material changes to these critical accounting policies and estimates through March 31, 2026 from those discussed in the Form 10-K.
Recently Issued and Adopted Accounting Pronouncements
A description of recently issued accounting pronouncements that may potentially impact our financial position and results of operations is disclosed in Note 2 to our condensed consolidated financial statements included elsewhere in this Report.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information required under this item.
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act), as of March 31, 2026. Based on such evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that as of March 31, 2026, our disclosure controls and procedures were ineffective because of material weaknesses in our internal controls over financial reporting which were not designed properly to ensure proper identification of non-routine transactions and ensure appropriate segregation of duties.
Material Weaknesses
Management is aware of material weaknesses in the Company’s internal control related to user access/segregation of duties, lack of a formalized control environment and oversight of controls over financial reporting and revenue recognition. Due to the limited transactional volume currently experienced, combined with our financial limitations, we do not currently have an expanded accounting department that would allow us to better segregate duties. Over time, as we continue to grow and add accounting staff, we expect to continue to enhance our internal control structure, including appropriate segregation of duties. Management has begun taking remediation steps to address the material weakness, including the hiring of a full-time controller in July 2025 and adding additional review procedures over our financial records. This remediation is an ongoing process and there can be no assurance that it will effectively address the material weakness.
Changes in Internal Control Over Financial Reporting
Except as described above, there were no other changes in our internal control over financial reporting during the three months ended March 31, 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
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PART II – OTHER INFORMATION
Item 1. Legal Proceedings.
For information regarding litigation, see Part I – Item 1. Condensed Consolidated Financial Statements, Note 13 - Commitments and Contingencies.
Item 1A. Risk Factors.
In addition to the other information set forth in this Report, you should carefully consider the factors discussed in the “Risk Factors” in the Form 10-K and our other public filings, which could materially affect our business, financial condition or future results. There have been no material changes from risk factors previously disclosed in “Risk Factors” in the Form 10-K and our other public filings.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
The Company entered into a subscription agreement, dated February 6, 2026, with Dr. Thomas Kosasa, a director of the Company, pursuant to which the Company issued 595,238 shares of its Common Stock to Dr. Kosasa at a price of $0.84 per share. The Company received net proceeds of approximately $0.5 million from the related party subscription agreement. These shares were issued in reliance on the exemption from registration provided by Section 4(a)(2) under the Securities Act of 1933, as amended.
Except as set forth above, during the three months ended March 31, 2026, we did not have issuances of unregistered securities not previously included in a Current Report on Form 8-K.
Item 3. Defaults Upon Senior Securities.
None.
Item 4. Mine Safety Disclosures.
Not applicable.
Item 5. Other Information.
During
the three months ended March 31, 2026, no director or officer of the Company
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Item 6. Exhibits.
The following documents are included as exhibits to this Report:
| Exhibit Number | Description | |
| 3.1 | Third Amended and Restated Certificate of Incorporation of OneMedNet Corporation (incorporated by reference to Exhibit 3.1 to the Company’s Form 8-K, filed with the SEC on November 13, 2023). | |
| 3.2 | Amended and Restated Bylaws of OneMedNet Corporation (incorporated by reference to Exhibit 3.2 to the Registrant’s Current Report on Form 8-K filed with the SEC on November 13, 2023). | |
| 31.1* | Certification of Chief Executive Officer (Principal Executive Officer) Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
| 31.2* | Certification of Chief Financial Officer (Principal Financial Officer) Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
| 32.1# | Certification of Chief Executive Officer (Principal Executive Officer) Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
| 32.2# | Certification of Chief Financial Officer (Principal Financial Officer) Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document | |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
| 104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
* Filed herewith.
# The certifications furnished in Exhibit 32.1 and Exhibit 32.2 hereto are deemed to accompany this Report and will not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, except to the extent that the registrant specifically incorporates it by reference.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on May 15, 2026.
| OneMedNet Corporation | ||
| By: | /s/ Robert Golden | |
| Robert Golden | ||
Chief Financial Officer (Duly Authorized Officer and Principal Financial and Accounting Officer) | ||
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