MARPAI, INC REPORTS THIRD QUARTER 2022 RESULTS.

NEW YORK: Marpai, Inc. ("Marpai" or the "Company") (Nasdaq: MRAI), an AI-technology company transforming the $22 billion Third-Party Administrator (TPA) market supporting self-funded employer health plans, today reported financial results for the third quarter ended September 30, 2022.

The Company's consolidated results of operations include the results of operations of Marpai and its wholly owned subsidiary, Marpai Health, Inc., for all periods presented, and the results of Marpai Administrators, LLC (formerly Continental Benefits, LLC) since its acquisition on April 1, 2021.

Financial Highlights

Net revenue of approximately $4.9 million for the three months ended September 30, 2022, compared to net revenue of approximately $5.6 million for the three months ended June 30, 2022, representing a sequential decrease of approximately $619,000, or 11.1%. This decline was caused by the third quarter decline in the number of our customers' employees covered under our plans.

The number of our customers' employees covered under the Company's administered health plans was 16,357, 21,074 and 21,139 on September 30, 2022, June 30, 2022, and March 31, 2022, respectively. As we explained on our second quarter earnings conference call, effective September 1, 2022, we decided not to renew the contracts of three customers who in our opinion were failing to fulfil their contractual obligations. These three customers accounted for more than 4,000 employees.

Operating expenses (including cost of revenues) were approximately $10.8 million for the three months ended September 30, 2022, as compared to approximately $12.2 million for the three months ended June 30, 2022, and approximately $11.8 million for the three months ended March 31, 2022.

Operating expenses (including cost of revenues) excluding stock based compensation expenses were approximately $10.1 million for the three months ended September 30, 2022 compared to approximately $11.1 million for the three months ended June 30, 2022, and approximately $11.1 million for the three months ended December 31, 2021.

Net loss was approximately $5.8 million for the three...