Reliq Health Technologies, Inc. Files Q2 FY2022 Quarterly Financial Statements, Provides Corporate Update
March 01 2022 - 8:46PM
Reliq Health Technologies Inc. (TSXV:RHT or
OTCQB:RQHTF) (“
Reliq” or the
“
Company”), a rapidly growing global healthcare
technology company that specializes in developing innovative
Virtual Care solutions for the multi-billion dollar Healthcare
market, today announced that the consolidated financial statements
(“Financial Statements”) and Management’s Discussion and Analysis
(“MD&A”) for the quarter ended December 31, 2021, are now
available on the Company’s profile on SEDAR (www.sedar.com).
“We have now filed our quarterly financials for
Q2 Fiscal Year 2022,” said Dr. Lisa Crossley, CEO of Reliq Health
Technologies, Inc. “The first two quarters of FY2022 were a period
of rapid growth for the Company. Revenues for the period from July
1 – December 31, 2021 were $3,748,292 as compared to $843,449 for
the period from January 1 – June 30, 2021, an increase of over
344%. Gross Margin improved to 74% in Q2 FY2022 as compared to 58%
for FY2021. Despite the dramatic resurgence of COVID (Omicron
variant) in Q2 FY2022, the Company reached a revenue run rate of $2
Million/month as of December 31, 2021, where run rate represents
the number of subscribers onboarded as of the given date. Revenue
run rate is a leading indicator of revenue that is expected to be
recognized within the following two to three months as patients
complete training and adapt to using the platform consistently in
order to reach the required compliance thresholds. As previously
disclosed, during the pandemic the Company extended flexible
payment terms to clients and received similarly generous payment
terms from our key suppliers. Receivables older than one year are
expected to be paid in full by our clients by the end of March 2022
and the Company expects to collect all other receivables in a
timely manner going forward now that most of our clients have
resumed normal operations.”
The Company is also pleased to provide the
following corporate update.
1. Highlights from Q2 FY2022 Quarterly Financial
Statements
During the period ending December 31, 2021 and
subsequent, the Company:
- Increased sales before returns
quarter-over-quarter by 36% to $2,183,075 relative to the previous
quarter (Q1 FY 2022 - $1,608,168).
- Increased gross profits
quarter-over-quarter to $1,583,702 in Q2 FY2022 (Q1 FY2022:
$1,159,024). Gross Margin for the quarter was 74%, a significant
increase as compared to FY 2021 (58%).
- Increased working capital
significantly to $5,921,491 as at December 31, 2021 (June 30, 2021
- $939,933).
- Reduced current liabilities to
$945,347 as at December 31, 2021 (June 30, 2021 - $2,238,209).
- After adjusting for non-cash
expenses including share-based compensation and accretion and
one-time non-reoccurring expenses including legal fees related to
the settlement of the proposed Class Action claim and expenses
relating to prior quarters, the Company’s adjusted EBITDA (gain)
for Q2 FY2022 was $48,062 (Q2 FY2021 adjusted EBITDA (loss):
$1,684,491).
- Signed implementation plan
agreements with current clients that are expected to add over
10,000 new patients to the platform in Calendar Year 2022,
leveraging the new Medicare Remote Therapeutic Monitoring billing
codes for patients with musculoskeletal or respiratory conditions.
Five new billing codes for RTM were introduced on January 1, 2022,
allowing clinicians to provide ongoing in-home treatment and
monitoring for patients with musculoskeletal and respiratory
conditions. RTM involves having patients use medical devices that
collect non-physiological data such as therapy/medication adherence
and therapy/medication response, and also allows for patient
self-reporting of key metrics such as pain level, mobility,
nighttime waking due to breathing difficulties, etc. The new RTM
codes have increased Reliq’s target patient population by over 20
million newly eligible patients to over 57 Million total eligible
patients.
- Signed an agreement with Data Soft
Logic (DSL) to provide iUGO Care to DSL’s existing and new clients.
Data Soft Logic currently has over 600 home health and hospice care
agency clients who work with more than 1,000 primary care
physicians to provide care to over 500,000 Medicare and Medicaid
patients. Reliq expects to begin onboarding DSL’s patients in Q2
Calendar Year 2022 and to ramp up to adding over 50,000 new
patients per year each year beginning in 2023, at an estimated
revenue of $60 per patient per month.
- Signed an agreement with Cognizant
to leverage Cognizant’s Care Management resources for future
deployments of Reliq’s iUGO Care software to large scale clients.
Cognizant provides services to 300+ health systems and over 347,000
care providers who together provide care to over 200 million lives
globally. The agreement with Cognizant will allow Reliq to scale to
new levels and provide even the largest healthcare organizations
with confidence that the Company can meet the needs of their
patient populations, no matter the size, allowing Reliq to access
new opportunities to provide virtual care to much larger patient
populations both within the US and globally.
- Signed contracts with 39 new US
primary care physician practices and 10 other healthcare
organizations in specialties including hospice care, nephrology,
orthopedics, long term care, cardiology and care management.
- Signed contracts with 9 new home
health agencies in the US.
2. Overview of Revenue
Run Rate, Revenue Recognition and Guidance
Despite the dramatic resurgence of COVID
(Omicron variant) in Q2 FY2022, the Company reached a revenue run
rate of $2 Million per month or $24 million per year at the end of
the quarter (December 31, 2021). Revenue run rate is calculated
using the number of subscribers as of the given timepoint and is an
indication of the revenue expected over the next year, excluding
new clients and patients subsequently announced within the given
year. New patient revenue is typically recognized after the
second or third full month that a patient is on the platform when
patients typically reach the required compliance
thresholds. Therefore, revenue run rate is a leading indicator
of revenue which is expected to be recognized approximately three
months later. Revenue run rate differs from revenue guidance in
that guidance includes expected growth over the year.
3. Outlook for Calendar
Year 2022
The Company expects to generate $40 Million CAD
in revenue in Calendar Year 2022.
4. Date for Webinar to
Review Q3 FY2022 Financials
The Company’s consolidated financial statements
for Q3 FY2022 (quarter ending March 31, 2022) are due to be filed
on or before May 30, 2022. The webinar to review the financial
statements will be scheduled on or before May 31, 2022.
About Reliq HealthReliq Health
Technologies is a rapidly growing global healthcare technology
company that develops innovative Virtual Care solutions for the
multi-billion dollar Healthcare market. Reliq’s powerful iUGO Care
platform supports care coordination and community-based healthcare.
iUGO Care allows complex patients to receive high quality care at
home, improving health outcomes, enhancing quality of life for
patients and families and reducing the cost of care delivery. iUGO
Care provides real-time access to remote patient monitoring data,
allowing for timely interventions by the care team to prevent
costly hospital readmissions and ER visits. Reliq Health
Technologies trades on the TSX Venture under the symbol RHT and on
the OTC as RQHTF.
ON BEHALF OF THE BOARD“Dr. Lisa Crossley”CEO and Director
For further information please contact:
Company ContactInvestor Relations at
ir@reliqhealth.com
US Investor Relations ContactInvestor
RelationsLytham Partners, LLCBen ShamsianNew York |
Phoenix646-829-9701shamsian@lythampartners.com
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
Cautionary Statements Regarding Forward
Looking Information
Certain statements in this press release
constitute forward-looking statements, within the meaning of
applicable securities laws. All statements that are not historical
facts, including without limitation, statements regarding future
estimates, plans, programs, forecasts, projections, objectives,
assumptions, expectations or beliefs of future performance, are
"forward-looking statements".
We caution you that such "forward-looking
statements" involve known and unknown risks and uncertainties that
could cause actual and future events to differ materially from
those anticipated in such statements.
Forward-looking statements include, but are not
limited to, statements with respect to commercial operations,
including technology development, anticipated revenues, projected
size of market, and other information that is based on forecasts of
future results, estimates of amounts not yet determinable and
assumptions of management.
Reliq Health Technologies Inc. (the
"Company") does not intend and does not assume any
obligation, to update these forward-looking statements except as
required by law. These forward-looking statements involve risks and
uncertainties relating to, among other things, technology
development and marketing activities, the Company's historical
experience with technology development, uninsured risks. Actual
results may differ materially from those expressed or implied by
such forward-looking statements.
SOURCE: Reliq Health Technologies Inc.
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