Business Context and Reporting Period
Company: OneMedNet Corporation (ONMD)
Filing Type: Form 10-Q (Unaudited)
Period Ended: June 30, 2026
Business Overview: OneMedNet provides healthcare software solutions focused on digital medical image management and Real-World Data (RWD) platforms. The company recently decommissioned its legacy BEAM platform in May 2025 to transition fully to its iRWD platform. The company is classified as a non-accelerated filer, smaller reporting company, and emerging growth company.
Key Financial Metrics
| Metric | Three Months Ended June 30, 2026 | Six Months Ended June 30, 2026 | As of June 30, 2026 |
|---|---|---|---|
| Total Revenue | $292,000 | $388,000 | - |
| Net Loss | $(2,172,000) | $(4,625,000) | - |
| Gross Margin | $(565,000) | $(1,154,000) | - |
| Operating Loss | $(2,261,000) | $(4,813,000) | - |
| Cash and Cash Equivalents | - | - | $358,000 |
| Total Debt (Loans Payable) | - | - | $701,000 |
| Stockholders' Deficit | - | - | $(3,518,000) |
Note: All figures in thousands except per share data. The company reported a negative gross margin due to costs exceeding revenue.
Material Changes vs. Prior Period
- Revenue Growth: Total revenue increased 88% ($137,000) for the three months ended June 30, 2026, compared to the same period in 2025. This was driven by a 170% increase in data delivery revenue ($292,000 vs. $108,000), offset by the complete cessation of subscription revenue ($0 vs. $47,000) following the BEAM platform decommissioning.
- Profitability: The company swung from a net income of $2,982,000 in Q2 2025 to a net loss of $2,172,000 in Q2 2026. The prior year income was significantly inflated by a $3,707,000 gain on troubled debt restructurings, which did not recur in 2026.
- Crypto Assets: The company liquidated all Bitcoin holdings during the period. As of June 30, 2026, crypto assets held were $0, down from $506,000 at December 31, 2025. This resulted in a realized loss of $46,000 for the quarter.
- Operating Expenses: Total operating expenses decreased slightly by 7% ($125,000) year-over-year for the quarter, primarily due to reduced professional fees, though sales and marketing expenses increased by 52%.
Guidance, Outlook, Risks, and Unusual Items
- Going Concern: Management has raised substantial doubt about the company's ability to continue as a going concern. With a cash balance of $358,000 and recurring operating losses, the company does not have sufficient liquidity to fund operations for the next 12 months without additional financing.
- Liquidity Strategy: The company raised approximately $3.0 million in the first half of 2026 through related party subscription agreements ($2.1 million) and the 2024 Standby Equity Purchase Agreement (SEPA) ($1.0 million). A new 2026 SEPA was entered into on July 1, 2026, allowing for up to $25.0 million in future sales.
- Nasdaq Compliance: The company received notice of non-compliance with the $1.00 minimum bid price requirement. It has an 180-day grace period until October 12, 2026, to regain compliance.
- Internal Controls: Management concluded that disclosure controls and procedures were ineffective due to material weaknesses in internal controls over financial reporting, specifically regarding segregation of duties and oversight of non-routine transactions.
- Legal Proceedings: A complaint filed by ARC Group Limited regarding contract breaches was voluntarily dismissed without prejudice in March 2026. The company denies liability and has not recorded a liability for this matter.
Investor Verification Checklist
- Cash Runway: Verify the sufficiency of the $358,000 cash balance against the current burn rate and the timeline for securing the additional capital required to avoid insolvency.
- Revenue Sustainability: Assess the durability of the data delivery revenue growth in the absence of the legacy BEAM subscription revenue stream.
- Debt Obligations: Review the terms of the $701,000 in outstanding loans payable and the potential for further dilution from the new 2026 SEPA.
- Stock Price Compliance: Monitor the stock price to determine if the company can meet the $1.00 minimum bid price requirement by October 12, 2026, to avoid delisting.
- Related Party Transactions: Scrutinize the terms and pricing of the $2.1 million raised from related party investors to ensure they are consistent with arm's length transactions.