VSEE HEALTH, INC. Files Q2 2024 10-Q

TL;DR

VSEE HEALTH Q2 2024 10-Q filed. Formerly Digital Health Acquisition Corp.

AI Summary

VSEE HEALTH, INC. filed its 10-Q for the period ending June 30, 2024. The company, formerly known as DIGITAL HEALTH ACQUISITION CORP. until May 26, 2021, is based in Boca Raton, Florida. The filing details financial information and business operations for the second quarter of 2024.

Why It Matters

This filing provides investors with a quarterly update on VSEE HEALTH, INC.'s financial performance and operational status, crucial for investment decisions.

Risk Assessment

Risk Level: medium — As a 10-Q filing, it contains detailed financial information that could reveal significant risks or opportunities for investors.

Key Players & Entities

• VSEE HEALTH, INC. (company) — Filer of the 10-Q
• DIGITAL HEALTH ACQUISITION CORP. (company) — Former name of VSEE HEALTH, INC.
• 20240630 (date) — End of the reporting period
• 20240923 (date) — Filing date
• BOCA RATON, FL (location) — Company's business address

FAQ

Key Financial Figures

• $0.0001 — ch registered Common Stock, par value $0.0001 per share VSEE The Nasdaq Stock Mar
• $11.50 — (1) share of common stock at a price of $11.50 per whole share VSEEW The Nasdaq St

Filing Documents

• vsee-20240630x10q.htm (10-Q) — 2846KB
• vsee-20240630xex31d1.htm (EX-31.1) — 16KB
• vsee-20240630xex31d2.htm (EX-31.2) — 15KB
• vsee-20240630xex32d1.htm (EX-32.1) — 12KB
• 0001558370-24-012936.txt ( ) — 15427KB
• vsee-20240630.xsd (EX-101.SCH) — 132KB
• vsee-20240630_cal.xml (EX-101.CAL) — 87KB
• vsee-20240630_def.xml (EX-101.DEF) — 626KB
• vsee-20240630_lab.xml (EX-101.LAB) — 927KB
• vsee-20240630_pre.xml (EX-101.PRE) — 868KB
• vsee-20240630x10q_htm.xml (XML) — 2829KB

Financial Statements

Financial Statements 6 Condensed Consolidated Balance Sheets as of June 30, 2024 (Unaudited) and December 31, 2023 6 Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2024 and 2023 (Unaudited) 7 Condensed Consolidated Statements of Shareholders' Equity (Deficit) for the three and six months ended June 30, 2024 and 2023 (Unaudited) 8 Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023 (Unaudited) 10 Notes to Condensed Consolidated Financial Statements (Unaudited) 11 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 61 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 76 Item 4.

Controls and Procedures

Controls and Procedures 76 Part II Other Information Item 1.

Legal Proceedings

Legal Proceedings 77 Item 1A.

Risk Factors

Risk Factors 77 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 77 Item 3. Defaults Upon Senior Securities 78 Item 4. Mine Safety Disclosures 78 Item 5. Other Information 78 Item 6. Exhibits 78 Exhibit Index

Signatures

Signatures 81 2 Table of Contents Cautionary Note on Forward-Looking Statements This Quarterly Report on Form 10-Q contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements appear in a number of places in this Form 10-Q including, without limitation, in the section titled " Management's Discussion and Analysis of Financial Condition and Results of Operations ". In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. Forward-looking statements are typically identified by words such as "plan," "believe," "expect," "anticipate," "intend," "outlook," "estimate," "forecast," "project," "continue," "could," "may," "might," "possible," "potential," "predict," "should," "would" and other similar words and expressions, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements are based on the current expectations of our management and are inherently subject to uncertainties and changes in circumstances and their potential effects and speak only as of the date of such statement. There can be no assurance that future developments will be those that have been anticipated. These forward-looking statements involve a number of risks, uncertainties or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those factors described in "Risk Factors" in the Form 8-K filed by us on June 28, 2024 and the following: We operate in a competitive industry, and if either is not able to compete effectively, its business, financial

—FINANCIAL INFORMATION

PART I —FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements VSEE HEALTH, INC. ( FKA DIGITAL HEALTH ACQUISITION CORP.) CONDENSED CONSOLIDATED BALANCE SHEETS June 30, December 31, 2024 2023 (Unaudited) ASSETS Current assets Cash $ 1,105,971 $ 118,734 Accounts receivable, net of allowance for credit losses of $ 1,741,238 and $ 32,457 as of June 30, 2024, and December 31, 2023, respectively 2,513,855 628,480 Due from related party 785,934 — Prepaids and other current assets 760,789 79,920 Total current assets 5,166,549 827,134 Note receivable, related party 245,500 — Right-of-use assets, net (related party portion $ 260,373 and zero as of June 30, 2024, and December 31, 2023, respectively) 691,684 — Intangible assets 12,100,000 — Goodwill 59,900,694 — Fixed assets, net 883,323 3,657 Total assets $ 78,987,750 $ 830,791 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Current liabilities Accounts payable and accrued liabilities $ 6,752,985 $ 1,824,408 Deferred revenue 1,023,492 802,524 Due to related party 456,858 338,506 Right-of use liability - operating (related party portion $ 101,401 and zero as of June 30, 2024, and December 31, 2023, respectively) 222,910 — Right-of use liability - financing 507,538 — Factoring payable 348,463 — Encompass Purchase liability 268,038 — SAFE Note — 135,000 Contingent liability — 600,000 ELOC 638,321 — ELOC Note 500,000 — Additional Bridge Note 397,408 — Exchange Note 5,666,873 — Quantum Convertible Note 4,697,050 — Loan payable, related party, net of discount 471,651 323,000 Line of credit and note payable, net of discount 928,280 220,000 Total current liabilities 22,879,867 4,243,438 Line of credit and notes payable, less current portion, net of discount 593,941 — Right-of-use liability - operating, less current portion (related party portion $ 163,658 and zero as of June 30, 2024, and December 31, 2023, re

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View this 10-Q filing on SEC EDGAR