CareCloud (MTBC) Registration Filing summary

Company overview and business model

• Provides technology-enabled revenue cycle management and generative AI solutions for healthcare providers, including cloud-based software, digital health services, and professional staffing.

• Offers proprietary software and business services to increase financial and operational performance for clients ranging from small practices to large health systems.

• Leverages a global workforce, including over 3,300 offshore employees, to deliver cost-effective solutions and support industry consolidation through acquisitions.

• Revenue model is primarily based on a percentage of client collections, aligning financial performance with client outcomes.

• Serves over 40,000 providers in approximately 2,600 practices and hospitals, with additional clients in healthcare service organizations.

Financial performance and metrics

• As of March 31, 2025, 42,321,129 shares of common stock were outstanding, with 984,530 shares of Series A Preferred Stock and 1,511,372 shares of Series B Preferred Stock outstanding.

• The company has a history of raising capital through public offerings, including $99.3 million from Series A Preferred Stock between 2015 and 2020.

• Dividends on preferred stock were suspended in December 2023 and resumed in February 2025, with 14 months of payments in arrears as of March 31, 2025.

Use of proceeds and capital allocation

• Net proceeds from offerings are expected to be used for general corporate purposes, including acquisitions, organic growth, capital expenditures, investments, working capital, and redemption of preferred stock.

• Pending use, proceeds may be invested in short-term, interest-bearing instruments or other investment-grade securities.