Microcap Investing Cliff Notes

Microcap Investing Cliff Notes

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Microcap Investing Cliff Notes
Microcap Investing Cliff Notes
MS Microcaps Conference comprehensive summary: HQI, MRAI, BOF, ACCS, USAQ, LAKE, INX.V, IEHC, CCEL, FPAY, TGEN, MIND, DAIO, BLM.V, QUIK, TSSI, BRM.V, FTG.TO, FSI, KLNG

MS Microcaps Conference comprehensive summary: HQI, MRAI, BOF, ACCS, USAQ, LAKE, INX.V, IEHC, CCEL, FPAY, TGEN, MIND, DAIO, BLM.V, QUIK, TSSI, BRM.V, FTG.TO, FSI, KLNG

For your convenience: Conference videos and summaries in one place

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MS Microcaps LLC
Mar 17, 2025
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Microcap Investing Cliff Notes
Microcap Investing Cliff Notes
MS Microcaps Conference comprehensive summary: HQI, MRAI, BOF, ACCS, USAQ, LAKE, INX.V, IEHC, CCEL, FPAY, TGEN, MIND, DAIO, BLM.V, QUIK, TSSI, BRM.V, FTG.TO, FSI, KLNG
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For those of you that like to do research and in order to help all of you with your navigational experience regarding our Virtual Conference we just hosted between March 3 and March 7, we thought it would be a good idea to publish the videos of all 18 companies in one post, along with our takeaways from each presentation. Hope you enjoy!

Marpai, Inc. (MRAI)

Conference Day 1 - Marpai (MRAI)

Conference Day 1 - Marpai (MRAI)

MS Microcaps LLC
·
Mar 6
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Positive Takeaways

  • Turnaround Progress & Profitability Focus:

    • The company has significantly reduced costs while improving operational efficiency.

    • Goal: Achieve EBITDA profitability in 2025, with a long-term goal of $5M+ EBITDA (tied to management’s stock incentives).

  • Recurring Revenue Model with Strong Customer Retention:

    • Marpai operates a subscription-based model, receiving recurring per-member-per-month (PMPM) payments from self-insured employers.

    • Provides cost savings services via AI-driven claims processing, fraud detection, and predictive analytics.

  • Revenue Growth Through Smarter Client Acquisition:

    • New leadership has ended unprofitable contracts while targeting higher-margin customers.

    • Sales team actively pursuing mid-year and off-cycle renewals, reducing reliance on January 1 renewals.

  • Operational Efficiency & AI Utilization:

    • Claims processing time improved from 30 days to 7-9 days.

    • Customer service wait times reduced from 2 minutes to 11 seconds.

    • AI has cut disease detection time from 2.5 years to 6 months, improving early intervention programs.

  • High Insider Ownership & Management Commitment:

    • 61% insider ownership, with CEO Damien Lamendola personally investing $3M+ into the company.

    • Management is aligned with shareholders, ensuring disciplined execution.

Cautious Takeaways

  • Revenue Decline Due to Contract Rationalization:

    • Revenue decreased as unprofitable customers were dropped, but this sets the stage for stronger long-term profitability.

  • Limited Cash Reserves & Recent Debt Financing:

    • The company raised $5M in December 2024, but may need additional funding depending on sales performance.

    • Management avoided convertible equity, keeping dilution risk lower.

  • Competitive Industry with Large Incumbents:

    • While Marpai benefits from its AI-driven approach, it competes against major insurers and regional TPAs with deep client relationships.

  • Challenges in Scaling & Acquisition Strategy:

    • The company moved away from acquiring small TPAs, instead focusing on organic client wins.

    • While this is a less disruptive approach, it may slow near-term scaling compared to M&A-driven expansion.

  • OTC Listing Limits Market Visibility:

    • Marpai voluntarily delisted from NASDAQ to avoid dilution but aims to uplist again once profitability is achieved.

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