OneMedNet Corp (ONMD) Q1 2026 Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended March 31, 2026. OneMedNet Corporation is a healthcare software company focused on digital medical image management and real-world data (RWD) solutions. The company operates as a single segment following the decommissioning of its legacy BEAM platform in May 2025. The company is classified as a smaller reporting company and an emerging growth company.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Total Revenue | $96,000 | $137,000 |
| Cost of Revenue | $476,000 | $361,000 |
| Gross Margin | $(380,000) | $(224,000) |
| Operating Expenses | $2,172,000 | $2,000,000 |
| Net Loss | $(2,453,000) | $(1,902,000) |
| Cash and Equivalents (End of Period) | $233,000 | $144,000 |
| Total Debt (Current + Long-term) | $837,000 | $974,000 |
| Stockholders' Deficit | $(4,079,000) | $(16,550,000) |
Note: All figures in thousands except per share data. The company reported a negative gross margin due to high data curation costs relative to revenue.
Material Changes vs. Prior Period
- Revenue Decline: Total revenue decreased 30% to $96,000. This was driven by a 100% drop in subscription revenue ($0 vs. $58,000) following the decommissioning of the BEAM platform, partially offset by a 22% increase in data delivery revenue ($96,000 vs. $79,000).
- Increased Loss: Net loss widened by 29% to $2.45 million, primarily due to higher operating expenses and a shift in non-operating income/expense dynamics.
- Bitcoin Strategy: The company sold Bitcoin during the quarter, resulting in a realized loss of $188,000 and an unrealized loss of $102,000. Bitcoin holdings dropped from 6 units ($506,000) to 1 unit ($66,000).
- Capital Raises: The company raised approximately $975,000 in the quarter through a Standby Equity Purchase Agreement (SEPA) with Yorkville and a related-party subscription agreement.
Outlook, Risks, and Management Commentary
- Going Concern: Management has raised substantial doubt about the company's ability to continue as a going concern. Cash on hand ($233,000) is insufficient to fund operations for the next 12 months. Additional equity or debt financing is required.
- Nasdaq Compliance: On April 14, 2026, the company received notice of non-compliance with Nasdaq's $1.00 minimum bid price rule. It has 180 days (until October 12, 2026) to regain compliance.
- Internal Controls: Disclosure controls and procedures were deemed ineffective due to material weaknesses in segregation of duties and oversight of financial reporting.
- Legal Proceedings: A complaint filed by ARC Group Limited regarding contract breaches was voluntarily dismissed without prejudice on March 19, 2026. The company denies liability and has not recorded additional liabilities.
- Subsequent Events: In April 2026, the company raised an additional ~$1.0 million from related party investors and issued stock to settle ~$0.2 million in unpaid officer salaries.
Investor Verification Checklist
- Liquidity Runway: Verify the timeline and terms of any new financing required to sustain operations beyond the current cash balance of $233,000.
- Nasdaq Status: Monitor the stock price to ensure it meets the $1.00 minimum bid requirement within the 180-day grace period to avoid delisting.
- Revenue Sustainability: Assess the growth trajectory of the iRWD platform to determine if it can replace the lost BEAM subscription revenue and cover the high cost of revenue.
- Related Party Transactions: Review the terms of recent capital raises and salary settlements with related parties for potential dilution or conflicts of interest.
- Bitcoin Volatility: Evaluate the impact of the company's remaining Bitcoin holdings and future sales on the volatility of its financial statements.