Q2 2024 Semler Scientific Inc Earnings Call

Speaker Change: Good afternoon, and welcome to the Semler Scientific 2024 Second Quarter Financial Results Conference Call. All participants will be in listen-only mode.

Unknown Executive: Financial Results Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.

Unknown Executive: Answer Results Conference Call. All participants will be in listen-only mode.

Unknown Executive: Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's prepared remarks, as time permits, management will take questions submitted prior to this call via email. Please note that this event is being recorded.

Speaker Change: Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.

Unknown Executive: After today's prepared remarks, as time permits, management will take questions submitted prior to this call via email. Please note this event is being recorded.

Speaker Change: After today's prepared remarks, as time permits, management will take questions submitted prior to this call via email. Please note, this event is being recorded.

Unknown Executive: 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. These include statements regarding the expectations for expansion of the business and the development and the marketing of additional products, including receipt and timing of an additional 510(k) clearance for Quantaflow and are recently adopted Bitcoin Treasury strategy and 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.

Unknown Executive: 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 Security Litigation Reform Act of 1995, as amended. These include statements regarding the expectations for expansion of the business and the development and marketing of additional products, including receipt and timing of an additional $510K clearance for Quantaflow and our recently adopted Bitcoin treasury strategy, and plans to acquire additional Bitcoin.

Unknown Executive: Such forward-looking statements are subject to both known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed. Those risks and uncertainties are described in the press release and in our SEC filing. The forward-looking statements made today are as of the date of this call, and the company does not undertake any obligation to update the forward-looking statements. If you do not have a copy of today's release, you may obtain one by visiting the Investor Relations page of the website Semler Scientific.com. Now, I would like to introduce Doug Murphy Katorian, CEO of Semler Scientific. Please go ahead.

Speaker Change: Before we begin, Semler Scientific needs to remind you that certain comments made during this call may constitute forward-looking statements.

Speaker Change: and are made pursuant to and within the meaning of the safe harbor provisions of the Private Security Litigation Reform Act of 1995 as amended.

Speaker Change: These include statements regarding the expectations for expansion of the business and the development and the marketing of additional products.

Speaker Change: Including receipt and timing of an additional 510k clearance for Quantaflow and our recently adopted Bitcoin treasury strategy and plans to acquire additional Bitcoin.

Speaker Change: 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.

Unknown Executive: Those risks and uncertainties are described in the press release and are SEC filings.

Speaker Change: Those risks and uncertainties are described in the press release and our SEC filings. The forward-looking statements made today are as of the date of this call, and the company does not undertake any obligation to update the forward-looking statements.

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

Unknown Executive: If you do not have a copy of today's release, you may obtain one by visiting the Investor Relations page of the website SemlerScientific.com.

Speaker Change: If you do not have a copy of today's release, you may obtain one by visiting the Investor Relations page of the website SemlerScientific.com.

Douglas Murphy: Now, I would like to introduce Doug Murphy, Catorian CEO, Semler Scientific. Please go ahead.

Speaker Change: Now, I would like to introduce Doug Murphy-Katorian, CEO of Semler Scientific. Please go ahead.

Doug Murphy Katorian: Good afternoon, everybody. Thank you for joining our second quarter 2024 results call. Once again, we achieved strong income from operations and used most of our cash and cash equivalents to purchase Bitcoin. We may now hold 929 Bitcoins as of August 5th, 2024. Now I'd like to hand the call over to Eric Semler, our chairman, who will discuss our Bitcoin strategy in more detail.

Douglas Murphy: Good afternoon, everybody. Thank you for joining our second quarter, 224 results of call. Once again, we achieved strong information from operations and use most of our academic questions to focus on Bitcoin.

Doug Murphy-Katorian: Good afternoon, everybody. Thank you for joining our second quarter 2024 results call.

Speaker Change: Once again, we achieved strong interim operations and used most of our cash and cash equivalents to purchase Bitcoin. We may now hold 900...

Douglas Murphy: We now hold 929 Bitcoin as of August 5, 2024.

Speaker Change: 29 bitcoins as of August 5th, 2024.

Eric Semler: Now I'd like to hand the call over to Eric Semler, our Chairman, who will discuss our coin strategy in more detail. Thank you, Doug. It's great to be on the call today.

Speaker Change: Now, I'd like to hand the call over to Eric Semler, our chairman, who will discuss our Bitcoin strategy in more detail. Eric.

Eric Semler: Thank you, Doug. It's great to be on the call today. In May, we announced that our board of directors had adopted Bitcoin as our primary Treasury Reserve asset. We are very encouraged by the strong positive reaction to this announcement. We are in the fortunate position of being a company with a strong balance sheet driven by a high-margin business that has consistently generated cash. We are also fortunate that our board members and executive officers collectively beneficially own approximately 30% of the company's outstanding shares and are intensely focused on maximizing shareholder value.

Eric Semler: Our board and senior management have spent extensive time examining potential uses of cash, including acquisitions and stock repurchases. But after studying various alternatives, we decided that holding Bitcoin would be the best use of our cash. We view Bitcoin as a compelling investment. We are encouraged by the growing global acceptance and institutionalization of Bitcoin, which has been accelerated by the SEC's approval in January 2024 of 11 Bitcoin spot ETFs. These ETFs have reported tens of billions of dollars of net inflows with investments from a large number of institutions, including global banks, pensions, endowments, and registered investment advisors.

Eric Semler: In May, we announced that our Board of Directors adopted Bitcoin as our primary treasury reserve asset. We are very encouraged by the strong positive reaction to the announcement. We are in the fortunate position of being a company with a strong balance sheet, driven by a high-margin business that has consistently generated cash. We are also fortunate that our board members and executive officers collectively beneficially own approximately 30% of the company's outstanding shares and are intensely focused on maximizing shareholder value. Our Board and senior management have spent extensive time examining potential uses of cash, including acquisitions and stock repurchases.

Eric Semler: Thank you Doug, it's great to be on the call today.

Eric Semler: In May, we announced that our Board of Directors adopted Bitcoin as our primary Treasury Reserve asset.

Speaker Change: We are very encouraged by the strong, positive reaction to this announcement.

Speaker Change: We are in the fortunate position of being a company with a strong balance sheet driven by a high margin business that has consistently generated cash.

Speaker Change: We are also fortunate that our board members and executive officers collectively beneficially own approximately 30% of the company's outstanding shares and are intensely focused on maximizing shareholder value.

Speaker Change: Our board and senior management have spent extensive time examining potential uses of cash, including acquisitions and stock repurchases.

Eric Semler: But after studying various alternatives, we decided that holding Bitcoin would be the best use of our cash. We view Bitcoin as a compelling investment. We are encouraged by the growing global acceptance and institutionalization of Bitcoin, which has been accelerated by the SEC's approval in January 2024 of 11 Bitcoin spot ETFs. These ETFs have reported tens of billions of dollars of net inflows, with investments from a large number of institutions, including global banks, pensions, endowments, and registered investment advisors. It is currently estimated that more than 10 percent of all Bitcoins are now held by institutions. We believe Bitcoin has unique attributes as a scarce and finite asset that can serve as a reasonable inflation hedge and safe haven amid global instability.

Speaker Change: But after studying various alternatives, we decided that holding Bitcoin would be the best use of our cash.

Speaker Change: We view Bitcoin as a compelling investment. We are encouraged by the growing global acceptance and institutionalization of Bitcoin, which has been accelerated by the SEC's approval in January 2024 of 11 Bitcoin spot ETS.

Speaker Change: These ETFs have reported tens of billions of dollars of net inflows with investments from a large number of institutions.

Speaker Change: Including global banks, pensions, endowments, and registered investment advisors. It is currently estimated that more than 10% of all bitcoins are now held by institutions.

Jennifer Oliva Herrington: It is currently estimated that more than 10% of all bitcoins are now held by institutions. We believe Bitcoin has unique attributes as a scarce and finite asset that can serve as a reasonable inflation hedge and safe haven amid global instability. Bitcoin is often compared to gold, which has been viewed as a dependable store of value throughout history. Like gold, Bitcoin is viewed as a scarce asset. The ultimate supply of Bitcoin is limited to 21 million coins, and approximately 94% of its supply already exists.

Speaker Change: We believe Bitcoin has unique attributes as a scarce and finite asset that can serve as a reasonable inflation hedge and safe haven amid global instability.

Eric Semler: Bitcoin is often compared to gold, which has been viewed as a dependable store of value throughout history. Like gold, Bitcoin is viewed as a scarce asset. The ultimate supply of Bitcoin is limited to 21 million coins, and approximately 94 percent of its supply already exists. We believe that Bitcoin's finite, digital, and decentralized nature, as well as its architectural resilience, make it preferable to gold, which has a market capitalization more than 16 times higher than the market cap of Bitcoin. Given our view that Bitcoin is a comparable and possibly better store of value than gold, we believe that Bitcoin will approach or exceed the value of gold over time.

Speaker Change: Bitcoin is often compared to gold, which has been viewed as a dependable store of value throughout history.

Speaker Change: Like gold, Bitcoin is viewed as a scarce asset. The ultimate supply of Bitcoin is limited to 21 million coins, and approximately 94% of its supply already exists.

Jennifer Oliva Herrington: We believe that Bitcoin's finite, digital, and decentralized nature, as well as its architectural resilience, make it preferable to gold, which has a market capitalization more than 16 times higher than the market cap of Bitcoin. Given our view that Bitcoin is a comparable and possibly better store of value than gold, we believe that Bitcoin will approach or exceed the value of gold over time. In light of the substantial gap in value between gold and Bitcoin, we believe that Bitcoin has the potential to generate outsized returns as it gains increasing acceptance as digital gold.

Speaker Change: We believe that Bitcoin's finite, digital, and decentralized nature, as well as its architectural resilience, make it preferable to gold, which has a market capitalization more than 16 times higher than the market cap of Bitcoin.

Speaker Change: Given our view that Bitcoin is a comparable and possibly better store of value than gold, we believe that Bitcoin will approach or exceed the value of gold over time.

Eric Semler: In light of the substantial gap in value between gold and Bitcoin, we believe that Bitcoin has the potential to generate outsized returns as it gains increasing acceptance as digital gold.

Speaker Change: In light of the substantial gap in value between gold and bitcoin, we believe that bitcoin has the potential to generate outsized returns as it gains increasing acceptance as digital gold.

Eric Semler: We are highly committed to our Bitcoin strategy. As an operating company, we intend to use our cash flow as well as proceeds from equity capital raises to accumulate Bitcoin.

Jennifer Oliva Herrington: We are highly committed to our Bitcoin strategy. As an operating company, we intend to use our cash flow, as well as proceeds from equity capital raises, to accumulate Bitcoin. 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.

Speaker Change: We are highly committed to our Bitcoin strategy. As an operating company, we intend to use our cash flow, as well as proceeds from equity capital raises, to accumulate Bitcoin.

Jennifer Oliva Harrington: Now, I'm pleased to introduce our COO, Jennifer Oliva Harrington, to provide an overview and update of our core medical products and services business. Jen. Thank you, Eric. Today, I will be presenting an overview of our market development and opportunities.

Speaker Change: 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? Thank you. Thank you. Thank you.

Jennifer Oliva Herrington: Today, I will be presenting an overview of our market development and opportunities. Renee Cormier, our CFO, will be providing information about second quarter 2024 financial results. Medtronic is a pioneer in developing and marketing technology products and services to healthcare providers to combat chronic diseases.

Jennifer Oliva-Herrington: Thank you, Eric. Today, I will be presenting an overview of our market development and opportunities. Renee Cormier, our CFO , will be providing information about second quarter 2024 financial results.

Jennifer Oliva Harrington: Renee Cornere, our CFO, will be providing information about 2nd quarter 2024 financial results. Some are as a pioneer in developing and marketing technology products and services to health care providers to come back chronic diseases. In conjunction with our Bitcoin Treasury strategy, we will continue to focus on our core medical products and services business. We remain dedicated to our customers and our goal of operating a growing and profitable health care company. Our main product, Quantiflow, is a medical device that is a non-invasive point of care test that measures arterial blood flow in the extremities to aid clinicians in early diagnosis of peripheral or child disease or PAD.

Speaker Change: Semler is a pioneer in developing and marketing technology products and services to healthcare providers to combat chronic diseases.

Jennifer Oliva Herrington: In conjunction with our Bitcoin Treasury strategy, we will continue to focus on our core medical products and services business. We remain dedicated to our customers and our goal of operating a growing and profitable health care company. Our main product, QuantiFlow, is a medical device that is a non-invasive point-of-care test that measures arterial blood flow in the extremities to aid clinicians in the early diagnosis of peripheral arterial disease, or PAD. Our technology brings cardiovascular testing to the forefront of medicine. We have a high leverage distribution model as Quantaflow is sold on a SAAS basis with a high recurring revenue stream from this subscription-based licensing model that has a large and under-penetrated TAM.

Speaker Change: In conjunction with our Bitcoin treasury strategy, we will continue to focus on our core medical products and services business.

Speaker Change: We remain dedicated to our customers and our goal of operating a growing and profitable health care company.

Speaker Change: Our main product, QuantiFlow, is a medical device that is a non-invasive point-of-care test that measures arterial blood flow in the extremities to aid clinicians in the early diagnosis of peripheral arterial disease, or PAD.

Jennifer Oliva Harrington: Our technology brings cardiovascular testing to the front lines of medicine. We have a high leverage distribution model as Quantiflow was sold on a SaaS basis with a high recurring revenue stream from this subscription-based licensing model that has a large and under penetrated TAM. Semler's operating focus remains supporting the identification of chronic diseases by our customers, which continues to burden our health care system. Cardiovascular disease ranks as a top concern in health care expenditures and global mortality, underscoring the imperative for early identification of cardiac conditions. We remain committed to research and development as we prioritize the enhancement of existing products and data services to stay in the forefront of innovation and consistently deliver cutting-edge solutions to our customers.

Speaker Change: Our technology brings cardiovascular testing to the front lines of medicine.

Speaker Change: We have a high leverage distribution model as QuantiFlow is sold on a SAS basis with a high recurring revenue stream from this subscription-based licensing model that has a large and underpenetrated TAM.

Renee Cormier: Semler's operating focus remains supporting the identification of chronic diseases by our customers, which continues to burden our healthcare system. Cardiovascular disease ranks as a top concern in healthcare expenditures and global mortality, underscoring the imperative for early identification of cardiac conditions. We remain committed to research and development as we prioritize the enhancement of existing products and data services to stay in the forefront of innovation and consistently deliver cutting-edge solutions to our customers.

Speaker Change: Semler's operating focus remains supporting the identification of chronic diseases by our customers, which continues to burden our healthcare system.

Speaker Change: Cardiovascular disease ranks as a top concern in health care expenditures and global mortality, underscoring the imperative for early identification of cardiac condition.

Speaker Change: We remain committed to research and development as we prioritize the enhancement of existing products and data services to stay in the forefront of innovation and consistently deliver cutting-edge solutions to our customers.

Jennifer Oliva Harrington: Our long-term vision includes extending our reach to encompass additional cardiovascular applications, reflecting our dedication to continuous expansion. In the interim, we continue the promotion and selling of chronic low as a valuable aid in the diagnosis of POD. We continue seeking to further establish Quantiflow with standard of care for our PAD diagnosis, leveraging the demonstrated clinical benefit of early detection and preventative care. We believe this approach holds the potential to not only save lives, but also to lower health care expenditures. We will continue diversifying our customer base by adding new medical centers, expanding our reach within value-based care providers, and growing opportunities within additional markets that will benefit from PAD testing.

Renee Cormier: Our long-term vision includes extending our reach to encompass additional cardiovascular applications, reflecting our dedication to continuous expansion. In the interim, we continue the promotion and sale of Quantaflow as a valuable aid in the diagnosis of PAD. We continue seeking to further establish QuantiFlow as standard of care for our PAD diagnosis, leveraging the demonstrated clinical benefit of early detection and preventative care. We believe this approach holds the potential to not only save lives but also to lower health care expenditures.

Speaker Change: Our long-term vision includes extending our reach to encompass additional cardiovascular applications, reflecting our dedication to continuous expansion.

Speaker Change: In the interim, we continue the promotion and selling of Quantaflow as a valuable aid in the diagnosis of PAD.

Speaker Change: We continue seeking to further establish Quantaflow as standard of care for our PAD diagnosis, leveraging the demonstrated clinical benefit of early detection and preventative care.

Speaker Change: We believe this approach holds the potential to not only save lives, but also to lower health care expenditures.

Renee Cormier: We will continue diversifying our customer base by adding new medical centers, expanding our reach within value-based care providers, and growing opportunities within additional markets that will benefit from PAD testing. I will now turn the call over to Renee to discuss our financial highlights.

Speaker Change: We will continue diversifying our customer base by adding new medical centers, expanding our reach within value-based care providers, and growing opportunities within additional markets that will benefit from PAD testing.

Renae Cormier: I will now turn the call over to Renee to discuss our financial highlights. Thank you, Jim. I'll cover our second quarter financial results and then speak more about our Bitcoin holdings and recently filed S-3. Following our remarks, and as time permits, we will answer questions that have been submitted via email.

Speaker Change: I will now turn the call over to Renee to discuss our financial highlights.

Renee Cormier: Thank you, Jen. I'll cover our second quarter financial results and then speak more about our Bitcoin holdings and recently filed S3. Following our remarks, and as time permits, we will answer questions that have been submitted via email. Total revenues in Q2 2024 were $14.5 million, which was down about 22% compared to the second quarter of 2023. For the remainder of 2024, we anticipate our revenues could follow a similar cadence that we saw in 2023, with H1 more heavily weighted versus H2.

Renae: Thank you, Jen. I'll cover our second quarter financial results and then speak more about our Bitcoin holdings and recently filed S3. Following our remarks, and as time permits, we will answer questions that have been submitted via email.

Renae Cormier: Total revenues in Q2 2024 were $14.5 million, which was down about 22% compared to the second quarter of 2023. For the remainder of 2024, we anticipate our revenues could follow a similar cadence that we saw in 2023, with H1 more heavily weighted versus H2. In the second quarter of 2024, our three largest customers, including their related affiliates, comprise 44%, 27%, and 11% of quarterly revenues, respectively.

Renae: Total revenues in Q2 2024 were $14.5 million, which was down about 22% compared to the second quarter of 2023.

Renae: For the remainder of 2024, we anticipate our revenues could follow a similar cadence that we saw in 2023, with H1 more heavily weighted versus H2.

Renee Cormier: In the second quarter of 2024, our three largest customers, including their related affiliates, comprised 44%, 27%, and 11% of quarterly revenues, respectively. Operating expenses in Q2 2024, which included cost of revenue of $9.1 million, a decrease of 20% year over year. Income from operations was $5.4 million compared to $7.2 million in the prior year.

Renae: In the second quarter of 2024, our three largest customers, including their related affiliates, comprised 44 percent, 27 percent, and 11 percent of quarterly revenues, respectively.

Renae Cormier: Operating expenses in Q2 2024, which includes cost of revenue, were $9.1 million, a decrease of 20% year over year. Income from operation was $5.4 million, compared to $7.2 million in the prior year. For the remainder of the year, we are focused on tight expense control as we continue to implement our Bitcoin treasury strategy. Other expenses net was $4.2 million, and included to change in fair value of our Bitcoin holdings of negative $5.1 million.

Renae: Operating expenses in Q2 2024, which includes cost of revenues, were $9.1 million, a decrease of 20% year-over-year.

Renae: Income from operation was $5.4 million compared to $7.2 million in the prior year.

Renee Cormier: For the remainder of the year, we are focused on tight expense control as we continue to implement our Bitcoin Treasury strategy. Other expenses net were $4.2 million and included a change in the fair value of our Bitcoin holding of negative $5.1 million. We have elected to early adopt ASU 2023-08, which is the new standard issued by the FASB for accounting for and disclosure of crypto assets. ASU 202308 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 for each reporting period.

Renae: For the remainder of the year, we are focused on tight expense control as we continue to implement our Bitcoin treasuring strategy.

Renae: Other expenses net was $4.2 million and included to change in fair value of our Bitcoin holding of negative $5.1 million.

Renae Cormier: We have elected to early adopt ASU 2023-08, which is the new standard issued by Pfizer for accounting for and 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 that income for each recording period.

Renae: We have elected to early adopt ASU.

Renae: 2023-08, which is the new standard issued by the FASB for accounting for and disclosure of crypto assets.

Renae: ASU 202308 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 for each reporting period.

Renae Cormier: David. While 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. Net income was $0 per basic share and $0 per fully diluted share, compared to net income of $5.9 million or 88 cents per basic share and 75 cents per fully diluted share in Q2 2023.

Renee Cormier: Well, this may introduce volatility into our reported net income, but it will not impact our cash flow from operations, which we intend to invest in additional Bitcoin purchases. Net income was nil, or $0 per basic share and $0 per fully diluted, compared to net income of $5.9 million or $0.88 per basic share and $0.75 per fully diluted share in Q2 2023.

Speaker Change: Well, this may introduce volatility into our reported net income.

Speaker Change: It will not impact our cash flow from operations, which we intend to invest in additional Bitcoin purchases.

Speaker Change: Net income was nil, or $0 per basic share and $0 per fully diluted share.

Speaker Change: Compared to net income of $5.9 million or $0.88 per basic share and $0.75 per fully diluted share in Q2 2023.

Renae Cormier: We ended the first quarter of 2024 with $62.8 million in cash and cash equivalents. In the second quarter of 2024, we had a strong quarter of cash generation of nearly $5.9 million. As of August 5th, 2024, we have acquired 929 Bitcoin at an aggregate purchase price of $63.9, inclusive of season expenses. Cash, cash equivalent, and a strict to cash at June 30th, 2024 was $7.5 million. Outside of working capital needs, we intend to use our liquid assets, including operating cash generations, to acquire more Bitcoin.

Renee Cormier: We ended the first quarter of 2024 with $62.8 million in cash and cash equipment. In the second quarter of 2024, we had a strong quarter of cash generation of nearly $5 million. As of August 5, 2024, we have acquired 929 bitcoins at an aggregate purchase price of $63 million, inclusive of fees and expenses. Cash, Cash Equivalent, and Restricted Cash at June 30, 2024 with $7.5 million. Outside of working capital needs, we intend to use our liquid assets, including operating cash generation, to acquire more Bitcoin.

Speaker Change: We ended the first quarter of 2024 with $62.8 million in cash and cash equivalents.

Speaker Change: In the second quarter of 2024, we had a strong quarter of cash generation of nearly $5 million.

Speaker Change: As of August 5, 2024, we have acquired 929 bitcoins at an aggregate purchase price of $63 million, inclusive of fees and expenses.

Speaker Change: Cash, Cash Equivalent, and Restricted Cash at June 30, 2024 with $7.5 million.

Speaker Change: Outside of working capital needs, we intend to use our liquid assets, including operating cash generation, to acquire more bitcoin.

Renae Cormier: In early June, we filed a shell registration statement on Form S-3 with amendments filed on July 11th and July 31st, 2024, under which we may, from time to time, offer and sell that securities, common stock, and are worn with a total value of up to $150 million, once the registration statement is declared effective by the SEC. At the same time, we filed a $50 million at-the-market or ATM offering perspectives, covering the offering, issuance, and sale of common stock. The S3 is not yet effective. When effective, 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.

Renee Cormier: In early June, we filed a shelf registration statement on form S, with amendments filed on July 11th and July 31st, 2024, under which we may, from time to time, offer, issue, and sell debt securities, common stock, and or warrants with a total value of up to $150 million once the registration statement is declared effective by the SEC. 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. The S3 is not yet effective.

Speaker Change: In early June , we filed this Shelf Registration Statement on Form S-3 with amendments filed on July 11 and July 31, 2024.

Speaker Change: Under which we may, from time to time, offer, issue and sell debt securities, common stock and or warrants with a total value of up to $150 million once the registration statement is declared affected by the SEC.

Speaker Change: 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.

Unknown Executive: When effective, 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 goods. That concludes our prepared remarks. We'll now begin our Q&A. We received a lot of great questions ahead of the release, and I will address a few of these that we did not address in the prepared remarks already. We do have the first question here. It's for Eric.

Speaker Change: The S3 is not yet effective. When effective, we intend to utilize the ATM when market conditions are favorable and will use the proceeds primarily for general corporate purposes, including the acquisition of Bitcoin.

Unknown Executive: That concludes our prepared remarks. We'll now begin our Q&A. We received a live great question ahead of the release, and I will address a few of these that we did not address in the prepared remarks already. We do have the first question here.

Speaker Change: That concludes our prepared remarks. We'll now begin our Q&A.

Speaker Change: So we received a lot of great questions ahead of the release, and I will address a few of these that we did not address in the prepared remarks already.

Eric Semler: How did you decide to embark on your Bitcoin strategy? And do you plan on purchasing other cryptocurrencies other than Bitcoin?

Eric Semler: For Eric, how did you decide to embark on your Bitcoin strategy, and do you plan on purchasing cryptocurrency other than Bitcoin? Thanks for name. We've had a successful medical technology operating company with high cash generation and minimal capital needs. Along the way, we've accumulated a large cash balance of nearly $63 million. As we have been looking for ways to deploy this cash to maximize shareholder value, our board and our senior leadership decided that buying Bitcoin made sense as an investment. Our decision was influenced by micro-strategy success, and the increasing institutional ownership of Bitcoin, as we've seen with the tens of billions of dollars of inflows into the Bitcoin ETFs and investments in them by pension funds, endowments, banks, and investment advice.

Speaker Change: We do have the first question here. It's for Eric. How did you decide to embark on your Bitcoin strategy and do you plan on purchasing cryptocurrency other than Bitcoin?

Eric Semler: We've had a successful medical technology operating company with high cash generation and minimal capital needs. And along the way, we've accumulated a large cash balance of nearly $63 million. And as we have been looking for ways to deploy this cash to maximize shareholder value, our board and our senior leadership decided that buying Bitcoin made sense as an investment. Our decision was influenced by MicroStrategy's success and the increasing institutional ownership of Bitcoin, as we've seen with the tens of billions of dollars of inflows into the Bitcoin ETF and investments in them by pension funds, endowments, banks, and investment advisors.

Eric Semler: Thanks, Renee.

Eric Semler: We've had a successful medical technology operating company with high cash generation and minimal capital needs and along the way we've accumulated a large cash balance of nearly 63 million dollars.

Speaker Change: And as we have been looking for ways to deploy this cash to maximize shareholder value, our board and our senior leadership decided that buying Bitcoin made sense as an investment.

Speaker Change: Our decision was influenced by MicroStrategy's success and the increasing institutional ownership of Bitcoin.

Speaker Change: As we've seen with the tens of billions of dollars of inflows into the Bitcoin ETFs and investments in them by pension funds, endowments, banks, investment advisors.

Eric Semler: We believe that Bitcoin's unique attribute, including its ultimate finite supply, its discounted value versus gold, its decentralized structure, and its growing global acceptance, differentiated from fiat money, and also from other cryptocurrency assets, and we have no plans to purchase cryptocurrency assets other than Bitcoin.

Eric Semler: We believe that Bitcoin's unique attributes, including its ultimate finite supply, its discounted value versus gold, its decentralized structure, and its growing global acceptance, differentiate it from fiat money and also from other cryptocurrency assets. And we have no plans to purchase any cryptocurrency assets other than Bitcoin.

Speaker Change: We believe that Bitcoin's unique attributes, including its ultimate finite supply, its discounted value versus gold, its decentralized structure, and its growing global acceptance, differentiate it from fiat money and also from other cryptocurrency assets.

Speaker Change: and we have no plans to purchase cryptocurrency assets other than Bitcoin.

Unknown Executive: Thanks, Eric. I can take our next question.

Jennifer Oliva Herrington: Thanks, Eric. I can take our next question. What's driving the underlying trends in the business? And what do you expect for the remainder of the year? So we are still experiencing demand for software licenses related to our Quantico products. We're seeing continued testing and are acquiring new customers outside the managed care space, including at clinics and also at value-based care providers, as the clinical value of testing really remains important.

Unknown Executive: What's driving the underlying trends in the business, and what do you expect for the remainder of the year? So we are still experiencing demand for software licenses related to our quantum build product. We're seeing continued testing and are obtaining new customers outside demand care space, including at clinics and also at value-based care providers, as the clinical value of testing really remains important.

Speaker Change: Thanks, Eric. I can take our next question. What's driving the underlying trends in the business? And what do you expect for the remainder of the year?

Speaker Change: So we are still experiencing demand for software licenses related to our Quantico products.

Speaker Change: We're seeing continued testing and are obtaining new customers outside the managed care space including at clinics and also at value-based care providers as the clinical value of testing really remains important.

Unknown Executive: So our focus for the rest of the year will be to tightly control expenses and to maximize the operating income. So outside of ensuring adequate working capital to run and grow our operating business, we do intend to deploy the remainder of our operating cash generation into additional Bitcoin purchases.

Jennifer Oliva Herrington: Our focus for the rest of the year will be to tightly control expenses and maximize operating income. Therefore, outside of ensuring adequate working capital to run and grow our operating business, we do intend to deploy the remainder of our operating cash generation into additional Bitcoin purchases. So the next question here that we have is around our S3. So where are we in the S3 process, and what capital instruments do you intend to use?

Speaker Change: So our focus for the rest of the year will be to tightly control expenses and to maximize operating income.

Speaker Change: So, outside of ensuring adequate working capital to run and grow our operating business,

Speaker Change: We do intend to deploy the remainder of our operating cash generation into additional Bitcoin purchases.

Unknown Executive: So the next question here that we have is around our S3. So where are we in the S3 process, and what capital instruments do you intend to use? We did initially file our self-registration on Gene6 with the SEC. So once this becomes effective, it will allow us to issue up to 150 million in debt securities, comments Doc, and or warrant. The SEC responded with questions primarily regarding our new Bitcoin strategy and disclosures around the same. We replied to their questions and comments and filed an amended S-3 on July 11th. And after reviewing, we're receiving further questions regarding our Bitcoin strategy. We did file another amended S3 on July 31st.

Speaker Change: So the next question here that we have is around S3. So where are we in the S3 process and what capital instruments do you intend to use?

Jennifer Oliva Herrington: We did initially file our self-registration on June 6th with the SEC. So once this becomes effective, it will allow us to issue up to $150 million in debt securities or stock in our warrants. The SEC responded with questions primarily regarding our new Bitcoin strategy and disclosures around the same. We replied to their questions and comments and filed an amended S3 on July 11th. And after reviewing, we're receiving further questions regarding our Bitcoin strategy. We did file another amended S3 on July 31.

Speaker Change: We did initially file our self-registration on June 6th with the SEC. So once this becomes effective, it will allow us to issue up to $150 million in debt securities come in stock in our warrants.

Speaker Change: The SEC responded with questions primarily regarding our new Bitcoin strategy and disclosures around the same.

Speaker Change: We replied to their questions and comments and filed an amended S3 on July 11th and after reviewing, we're receiving further questions regarding our Bitcoin strategy. We did file another amended S3 on July 31st.

Unknown Executive: So we're waiting for the SEC to confirm that has no further comments on the S3 and declare our S3 effective. So once effective, we do plan to tap our 50 million dollar ATM offering to issue equity, assuming, of course, that market conditions are favorable. We plan to use the ATM proceeds for general corporate purposes, including buying more Bitcoin. So given that we are an operating company and we do have followed cash generation, and we're seeking to do additional financing, we do believe that we are in a strong position to build our Bitcoin arsenal over time.

Unknown Executive: So we're waiting for the SEC to confirm that it has no further comments on the S3 and declare our S3 effective. Once effective, we do plan to tap our $50 million ATM offering to issue equity, assuming, of course, that market conditions are favorable. We plan to use the ATM proceeds for general corporate purposes, including buying more Bitcoin. So given that we are an operating company, and we do have solid cash generation, and we're seeking to do additional financing, we do believe that we are in a strong position to build our Bitcoin arsenal over time. So, looks like we do have time for one more question. So, Eric, this one is for you again. Can you talk about your long-term strategy related to Bitcoin and the initial reaction to your strategy?

Speaker Change: So we're waiting for the SEC to confirm that it has no further comments on the S3 and declare our S3 effective.

Speaker Change: So once effective, we do plan to tap our $50 million ATM offering to issue equity, assuming of course that market conditions are favorable. We plan to use the ATM proceeds for general corporate purposes, including buying more Bitcoin.

Speaker Change: So given that we are an operating company and we do have solid cash generation and we're seeking to do additional financing, we do believe that we are in a strong position to build our Bitcoin arsenal over time.

Unknown Executive: So it looks like we do have time for one more question.

Eric Semler: So Eric, this one is for you again. Can you talk about your long-term strategy related to Bitcoin and initial reaction to your strategy? Sure, great question. We're among a small number of public companies leading institutional Bitcoin adoption and the establishment of Bitcoin as a primary treasury reserve, and given our strong conviction in Bitcoin as a store of value and as a compelling investment. We intend to hold Bitcoin for the long term. We strongly believe that institutional adoption of Bitcoin will gain continued traction and drive overwhelming demand for it.

Speaker Change: So, looks like we do have time for one more question. So, Eric, this one is for you again. Can you talk about your long-term strategy related to Bitcoin and initial reaction to your strategy?

Eric Semler: Sure, great question. We're among a small number of public companies leading institutional Bitcoin adoption and the establishment of Bitcoin as a primary treasury reserve. And given our strong conviction in Bitcoin as a store of value and as a compelling investment, we intend to hold Bitcoin for the long term. We strongly believe that institutional adoption of Bitcoin will gain continued traction and drive overwhelming demand for it. I recently attended and spoke on a panel at Bitcoin 2024 in Nashville.

Speaker Change: Sure, great question. We're among a small number of public companies leading institutional Bitcoin adoption and the establishment of Bitcoin as a primary Treasury reserve. And given our strong conviction in Bitcoin as a store of value and as a compelling investment, we intend to hold Bitcoin for the long term.

Speaker Change: We strongly believe that institutional adoption of Bitcoin will gain continued traction and drive overwhelming demand for it.

Eric Semler: I recently attended and spoke on a panel at Bitcoin 2024 in Nashville. There were 35,000 attendees at the conference, including two presidential candidates, several U.S. Senators and congressmen, and I was amazed by the outpouring and support that we received at the conference for our Bitcoin community, and we are thrilled.

Speaker Change: I recently attended and spoke on a panel at Bitcoin 2024 in Nashville.

Eric Semler: There were 35,000 attendees at the conference, including two presidential candidates, several U.S. Senators, and Congressmen, and I was amazed by the outpouring of support that we received at the conference for our Treasury Reserve Strategy. Semler Scientific has truly been embraced by the Bitcoin community, and we are thrilled.

Speaker Change: There were 35,000 attendees at the conference, including two presidential candidates, several U.S. Senators and Congressmen, and I was amazed by the outpouring of support that we received at the conference for our Treasury Reserve Strategy.

Speaker Change: Semler Scientific has truly been embraced by the Bitcoin community and we are thrilled.

Unknown Executive: Thank you, Eric, and thank you, everyone, for your questions.

Unknown Executive: Thank you, Eric. And thank you everyone for your questions.

Unknown Executive: As we wrap up this conference call, we wanted to emphasize our ongoing commitment for a medical stop for 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.

Speaker Change: Thank you, Eric, and thank you everyone for your questions. As we wrap up this conference call, we wanted to emphasize our ongoing commitment for medical software licensing business and continued execution of our Bitcoin treasury strategy.

Unknown Executive: As we wrap up this conference call, we wanted to emphasize our ongoing commitment to the 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. The conference is now concluded. Thank you for attending today.

Speaker Change: We appreciate your participation in today's discussion and thank you for your ongoing support. Operator.

Unknown Executive: Operators?

Unknown Executive: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Unknown Executive: The conference is now concluded. Thank you for attending today's presentation.

unknown: ?? ?? ?? [inaudible]

Unknown Executive: You may now disconnect. Once again, the Summer Scientific Conference has concluded; you made this connector lines.

Speaker Change: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Speaker Change: Who Passed? Thanks for watching!

unknown: Once again, the Semler Scientific Conference has concluded. You may disconnect your lines.

unknown: [inaudible]

Speaker Change: Once again, the Semler Scientific Conference has concluded. You may disconnect your lines.