CareCloud, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Liquidity

Liquidity	9 Months Ended
Sep. 30, 2016
Liquidity [Abstract]
Liquidity	2. LIQUIDITY The Company generated net losses before tax of $4.6 million for the nine months ended September 30, 2016, and $1.4 million for the three months ended September 30, 2016. Net cash used in operating activities was $494,000 for the nine months ended September 30, 2016. The Company continues to reduce expenses, with the goal of generating positive cash flow from operations. The Company has a credit facility with Opus Bank (Opus) established in the third quarter of 2015, which provides additional liquidity. The credit facility includes term loans plus a line of credit that have a combined borrowing limit of $10 million, all of which were fully utilized as of September 30, 2016. The term loans expire September 1, 2019 and the line of credit expires September 1, 2018 unless renewed. The Company relies on the term loans and line of credit for working capital purposes. (See Note 8.) The Company completed a preferred stock offering in November 2015 and raised approximately $4.7 million after expenses. An additional preferred stock offering was completed in July, 2016, which raised approximately $1.3 million after expenses. The preferred stock is redeemable at the Companys option after five years, and is not subject to conversion, mandatory redemption or sinking fund provisions. The Company had a current cash balance of $7.1 million at September 30, 2016. In October, as a result of the MediGain acquisition, the Company made the initial $2 million payment. The Company is preparing to file a Form S-1 to sell additional Series A Preferred Stock to fund the remaining $5 million unsecured payment related to the MediGain acquisition (See Note17.) Upon completion of this offering, we believe we will have sufficient cash to meet our working capital and capital expenditures requirements for at least the next 12 months. Although MTBC believes there will be sufficient investor interest and is confident in its ability to raise adequate capital, there is no assurance that the Companys anticipated preferred stock offering will be successful or raise sufficient funds. In the event the Company is not able to raise sufficient funds in time to make the payment in January, 2017, then we will seek other sources of financing.

Liquidity

9 Months Ended

Sep. 30, 2016

2. LIQUIDITY

The Company generated net losses before tax of $4.6 million for the nine months ended September 30, 2016, and $1.4 million for the three months ended September 30, 2016. Net cash used in operating activities was $494,000 for the nine months ended September 30, 2016. The Company continues to reduce expenses, with the goal of generating positive cash flow from operations.

The Company has a credit facility with Opus Bank (Opus) established in the third quarter of 2015, which provides additional liquidity. The credit facility includes term loans plus a line of credit that have a combined borrowing limit of $10 million, all of which were fully utilized as of September 30, 2016. The term loans expire September 1, 2019 and the line of credit expires September 1, 2018 unless renewed. The Company relies on the term loans and line of credit for working capital purposes. (See Note 8.)

The Company completed a preferred stock offering in November 2015 and raised approximately $4.7 million after expenses. An additional preferred stock offering was completed in July, 2016, which raised approximately $1.3 million after expenses. The preferred stock is redeemable at the Companys option after five years, and is not subject to conversion, mandatory redemption or sinking fund provisions.

The Company had a current cash balance of $7.1 million at September 30, 2016. In October, as a result of the MediGain acquisition, the Company made the initial $2 million payment. The Company is preparing to file a Form S-1 to sell additional Series A Preferred Stock to fund the remaining $5 million unsecured payment related to the MediGain acquisition (See Note17.) Upon completion of this offering, we believe we will have sufficient cash to meet our working capital and capital expenditures requirements for at least the next 12 months. Although MTBC believes there will be sufficient investor interest and is confident in its ability to raise adequate capital, there is no assurance that the Companys anticipated preferred stock offering will be successful or raise sufficient funds. In the event the Company is not able to raise sufficient funds in time to make the payment in January, 2017, then we will seek other sources of financing.