Assure (IONM) investor relations material

Executive summary

• Completed sale of most clinical operations and assets on March 26, 2024, retaining limited IONM services in Arizona and Montana and focusing on billing, collections, and revenue cycle management.

• Entered into a definitive merger agreement with Danam Health, Inc.; post-merger, Danam equityholders will own 90% of the combined company, which will be renamed Danam Health Holdings Corp.

• Settled a Department of Justice investigation for $1 million related to historical billing practices, with payments to be made over 12 months.

• Facing ongoing Nasdaq listing compliance challenges, with an extension granted until July 22, 2024, to meet requirements, contingent on merger completion.

Financial highlights

• Revenue from continuing operations was $9,000 for Q1 2024, down 92% year-over-year due to exit from managed service agreements.

• Net loss for Q1 2024 was $3.8 million, compared to $3.1 million in Q1 2023.

• Income from discontinued operations was $908,000, up from $425,000 in Q1 2023, driven by a $666,000 gain on asset sale.

• Cash balance at March 31, 2024, was $376,000, with negative working capital of $19.0 million.

Outlook and guidance

• Current cash and projected cash flows are insufficient for the next 12 months; company intends to seek additional equity or debt financing.

• Management expects remaining MSA relationships to be terminated in 2024 and is focused on completing the merger with Danam Health.

• No assurance of regaining Nasdaq compliance; delisting could materially impact liquidity and financing ability.

• Significant cost-cutting measures have been implemented to address going concern risks.