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Our first question is from Alan Klee with MaximGov.

You expect to make second half 26 different from first half from a financial perspective?

Alan, forgive us. Would you mind just repeating that? We lost the volume for a minute.

Oh, just what are the major factors that you expect to make second half 26 financially different from first half 26? Okay.

Okay, very good. And I'll let Norm dig into that a little bit more. But as you said, the second half of the year, we expect to be much stronger than the first half of the year. Part of that is simply related to the natural seasonality that exists in our space. So a component of that is seasonality. But if we look at the revenue, only part of that is really seasonality. The other part of that relates to the fact that we will continue to layer growth on top of the existing business that we have, both through the expansion of the existing customer relationships from the enterprise relationships, and also through the Empower cross-selling that is well underway. So part of the story will be revenue. If you think about from a revenue perspective, will need to go from roughly $32 million in Q2 to $33, $34 million per quarter in the balance of the year to achieve our guidance. And we feel comfortable that that is very doable. The other part of it really relates more to the adjusted EBITDA and EPS component. So if we think about Some of the downward pressure from a profitability perspective, some of the downward pressure really relates to the fact that we've been spending significant energies integrating the MedSphere acquisition. So from the perspective of the performance of the MedSphere acquisition, we've really been very pleased. But as we talked about at the time when we acquired MedSphere, there's significant tech debt that we knew going into the acquisition really had to be remediated. So we've been working hard to deploy the research and development resources that are necessary to accomplish that to really ensure that we have a solid foundation moving forward. Some of that development work relates to also making sure that the platform is really driven by AI, like the balance of our ambulatory platform. and a lot of that energy and those resources have really been spent during the first half of the year, but we believe we'll see the benefits of that in the second half of the year. Also from an integration perspective and cost duplication, we see a significant amount of that integration efforts really being in our rear view mirror having already been accomplished. There's still some more work to be done, but but the lion's share of that was completed during the first and second quarters of the year. We'll see the benefits of that in the second half of the year. Are there other areas that would be helpful to talk about? Well, I think, you know, Steve, that was comprehensive.

You know, our amortization will be decreasing, Alan. You know, we use a declining balance. It's an accelerated amortization that's related to the intangibles. That will be decreasing over time. and as Steve said, we look very carefully at our forecasted revenue and expenses. We feel comfortable with the sales pipeline and what opportunities will turn into recognized revenue and also how we're going to manage those expenses going forward.

That was very comprehensive. Thank you. And then for the Empower Healthcare and Compliance Partners acquisition, should we be thinking of this as and so forth. So, again, the acquisition we closed in the middle of May. So, from the perspective of Q2 results, it had minimal impact and, frankly,

Overall, it won't have a material impact on the financial data from the perspective of revenue contribution or overall EBITDA. But the benefit that we see really will be twofold. First of all, we're able now to be able to take the healthcare compliance and all the defense services that are really critical. and becoming more and more important to the providers who we serve. And we're able to incorporate that expertise and that knowledge base now into our broader platform. And we expect to be able to roll out a SAS version of what has been up to this point in time delivered manually from the perspective of the professionals delivering these services We'll scale that and be able to bring that to the market in a SaaS platform that will be further supplemented and augmented by the professionals who we have on board through Empower. So part of it will be taking our existing customer base and cross-selling that customer base into the SaaS platform. The other part will be being able to leverage cross-selling from the perspective of the existing Empower clients and cross-selling our revenue cycle management services and EHR solutions into that base. The individual who now serves as the president of Empower, Mitch Brie, joined us through that acquisition for the company that he founded and grew. And just as a side note, we've known Mitch for some time. and Mitch has referred business to us that today represents about 10% of our overall revenue on an annualized basis. So he's really been instrumental in terms of partnering with us and helping us grow our business from an organic perspective. And we think that he can do far more by being a member of the team and by having a overall structure as part of the acquisition that heavily aligned, that heavily aligns Mitch and Empower with what we're trying to achieve in terms of growth. And in terms of the overall structure, I would just note that the overall structure of the acquisition really followed and tracked the same sort of structure you've seen in prior acquisitions with a minimal amount down, roughly 30% of the trailing revenues, trailing 12 months revenue, paid at closing, and then the balance of that will be paid from an earn out that's really based upon the ability of Empower to help us grow and to be successful in leading cross-selling initiatives.

Thank you.

On slide 11 of the presentation, I think it's Stratus AI front desk it might be referring to. You have a section called demand and you say you talk of new business sign through Q2, demand across. Basically, I was wondering if you could dig into a little bit of when you say new business sign through Q2 and demand from across the client base.

Absolutely. So from an AI perspective, I'll let Hadi talk a little bit more about the AI initiatives that we're seeing success on today, both in terms of Shikratis and also within our broader platform. And one other thing I'd mention, too, is that we're in conversations also, and some of these conversations are in the relatively early phases, but we're in active conversations with private equity groups about whether or not there may be an opportunity that relates to their portfolio companies. So private equity groups that are focused on healthcare companies. And we really see an opportunity to be able to partner with these private equity groups long-term and to be able to assist them in accomplishing the ability to optimize their overall revenue structure and increase revenues while at the same time being able to be effective in helping them reduce their costs. So really the same thing that we do as we acquire companies, we think we can accomplish the same thing on their behalf. And a lot of those discussions really revolve around our ability to assist them in particular with regard to the AI needs that their portfolio companies have. Again, no No promise that any of these individual conversations will result in new business, but we've had some promising conversations. But in terms of the overall AI, if you don't mind just providing a little bit more color on that, that'd be great.

Thanks, Steve. So as Steve mentioned, in terms of the Stratus AI to your question, we continue to see the demand. We continue to sign up more deals on Stratus AI and other AI products. We are extensively in the implementation phase, and I think when we get to a point of where the numbers, the AI-specific revenue numbers are scalable enough that we should be able to start disclosing, we will separate it out from the technology-enabled services revenue. But if you look at it from the AI, it's the same three tracks we continue. One is using it internally to perform the work more efficiently and effectively and cost-efficiently, and then the front-end application that we are developing and selling to the customers.

Okay. Thank you so much. Thank you.

Once again, if you would like to ask a question, please press star 1 on your telephone keypad. Our next question is from Richard Hatke with Zax. Please proceed with your question.

Hello, everyone. Yeah, I'm feeling at least I had to jump off at 9, so as you know, I'm going to ask a couple questions on her behalf. How are you doing?

Doing well, Richard. Thanks for calling in.

All right. All right. Yeah, good. Now, you know... Her first set of questions related to AI and what's going on there. I think you guys have covered that quite extensively, both in your remarks and in answer to the previous question. I think you've covered that. I think she got what she needs there. Let's talk about cross-selling a little bit. Hadi, you made a comment that you're in the early innings of cross-selling opportunities. Are you referring to Empower and MedSphere or just Empower? Let's just focus on MedSphere. Have you exhausted all the opportunities there?

Good question. And if we kind of break that up, so from the perspective of Empower, we're focused heavily today on these cross-selling initiatives. So cross-selling is already well underway with regards to Empower. We don't have any new signings yet in terms of from the perspective of the Empower cross-selling, but but since it's only been a couple months, I guess that would be understandable. From the MedSphere perspective, we still have significant opportunity to score additional wins from a MedSphere cross-selling perspective. We've already really seen some pretty significant traction in terms of the hospitals that we're working with from MedSphere acquisition perspective. We've been able to cross-sell and to expand the overall wallet share of those hospitals. Having said that, I still think we're just beginning in the whole scheme of cross-selling from a MedSphere perspective. Hadi, you might have something.

Right. So, naturally, the one that you were referring to, Richard, that I was referring to, and I'm being careful here because that deal has not yet been signed. All that I can say that we are in active conversation with one existing PE-backed, a large enterprise client about an AI-powered platform engagement. So we will hold the specifics for now in terms of the name, the scope, or any number until it gets materialized. I would simply frame it as a strong validation of our capabilities in AI and over the decades that we have developed into our space. So that's other than the empower or the cross-sell opportunities that Steve was referring to.

Okay, excellent. Thank you. Now, next question I think is related. Lisa was of the understanding that you have tripled your sales force. I'm not sure what over period of time that was. How's that changed your expectations? Are they up to speed? Do you plan to expand any further? Could you talk a little bit about your sales force?

We've really significantly expanded the overall sales force, and the sales force continues to be focused primarily on cross-selling, expanding the existing wallet share. That's where we see the opportunity. That's where we're seeing the successes. And from an expense structure perspective in terms of the overall cost, it's less expensive to sell to our existing customers as opposed to pursuing more broadly net new wins. So we continue to focus on that cross-selling. The team is fully up to speed in terms of our applications. Many of the individuals who are part of this expanded sales team joined us through the MedSphere acquisition, so they already understood their applications, understand the place in the market for those various applications and solutions, and also how the position Those solutions from a cross-selling perspective.

Okay, excellent. Thank you for that. Just one final question, different subject completely. You had that cyber breach back, I guess it was in Q1, March, something like that. Any update on that? Insurance is going to substantially cover all the costs, too early to tell. Any update there?

Certainly based upon what we know today, we don't believe that this incident will have any material impact on our operations or financial conditions. So we still feel very strongly that that's the case. But if we just back up for a minute, we just talk more generally about the security incident. I think you're referring to the March 16th incident that we had. And you'll recall this was really an incident that affected a single environment within CareCloud Health. And we were really thankful that we had the ability to fully restore our system the same day that it was impacted. We restored it the same afternoon that it was impacted. And also I'd say beyond that, from the perspective of customers, I think they can rest assured that we were able to expel the bad actor from our system on that same day, on March 16th. And we've since had forensic analyses performed that validate our belief that we had cut off their access or essentially kicked them out of the system on March 16th. So it was a limited universe of our overall platform and client base. It was restored quickly and the threat no longer to the best of our knowledge exists within our platform as validated by our third-party forensic examiner. We're in the process right now of sending out notices to the patients who were impacted by that breach. So that's well underway. And we continue once again to believe that the insurance coverage will provide Everything that we need from a financial perspective to be able to both communicate to the patients to perform the forensic analysis, which is already in our rear view mirror, legal costs, litigation fees, and the like, we believe will be within that premium. I'm sorry, within that coverage amount.

Okay. Sounds like you had it very well contained. That's excellent. All right, well then I'll just leave you with this. It looks to me like you met or slightly exceeded Lisa's expectations for you top and bottom line for Q2, so that's good. Anyway, thank you and thanks for taking my call.

Thank you, Richard.

Once again, if you would like to ask a question, please press star 1 on your telephone keypad. We have reached the end of the question and answer session. I would like to turn the floor back over to Norman Roth for closing comments.

Thank you everyone for attending our closing. Have a great day.

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.