Reliq Health Technologies, Inc. Files Q3 FY2022 Quarterly Financial Statements, Provides Corporate Update
May 30 2022 - 8:32PM
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 March 31, 2022, are now
available on the Company’s profile on SEDAR (www.sedar.com).
“We have now filed our quarterly financials for
Q3 Fiscal Year 2022,” said Dr. Lisa Crossley, CEO of Reliq Health
Technologies, Inc. “The first three quarters of FY2022 were a
period of rapid growth for the Company. Revenues for the nine
months ended March 31, 2022 increased by over 490% to $6,263,304 as
compared to $1,060,701 for the nine months ended March 31, 2021.
Gross Margin improved to 70% for the nine month period as compared
to 47% for the comparable period in FY2021. Despite the significant
resurgence of COVID-19 (Omicron variant) in late 2021 / early 2022,
revenue from software and services sales more than doubled
quarter-over-quarter from Q2 to Q3 FY2022, consistent with the
Company’s prior statements that by the end of Calendar 2022 the
majority of the Company’s revenue would be generated by software
and services sales vs device sales. The Company expects the bulk of
its growth to occur in the second half of this calendar year as
previously disclosed larger clients come online and the impact of
COVID-19 on operations is reduced.”
The Company is also pleased to provide the
following corporate update.
-
Highlights from Q3 FY2022 Quarterly Financial
StatementsDuring the nine month period ending March 31,
2022 and subsequent, the Company:
- Increased sales
for the nine months ended March 31, 2022 by over 490% to $6,263,304
relative to the nine months ended March 31, 2021 ($1,060,701).
- Increased
revenue from software and services quarter-over-quarter doubled to
$1,067,426 (December 31, 2021 - $524,547). Going forward the
Company expects the majority of its revenue to come from software
and services vs hardware sales.
- Increased gross
profits for the nine months ended March 31, 2022 to $4,378,830
(March 31, 2021 - $502,529). Gross margins for the period increased
to 70% (March 31, 2021 - 47%) as high margin software and services
revenues increased and margins on device sales improved as customer
demand increased.
- Increased gross
profits quarter-over-quarter to $1,636,105 for the three-months
ended March 31, 2022 (three-months ended December 31, 2021 -
$1,583,702). Gross Margin for the quarter was 65%. The slight
decrease in gross margin during this period was due to a temporary
increase in device costs which has subsequently been resolved as
the Company identified new device suppliers. Gross margins are
expected to return to the target 75% in the second half of calendar
year 2022 due to reduced device costs and an increase in the
percentage of the Company’s total revenues from higher margin
software and services vs hardware.
- Increased
working capital to $6,941,912 (December 31, 2021 -
$5,921,491).
- After adjusting
for non-cash expenses including share-based compensation and
accretion, and one-time non-reoccurring expenses including
development costs associated with implementing the FHIR standard,
the Company’s adjusted EBITDA (gain) for Q3 FY2022 was $63,235 (Q3
FY2021 adjusted EBITDA (loss) - $1,216,689).
- On January 1,
2022 CMS introduced five new billing codes for Remote Therapeutic
Monitoring (RTM), 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 in the US alone.
- 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 80 new US primary care physician practices and 13 other
healthcare organizations in specialties including hospice care,
nephrology, orthopedics, long term care, skilled nursing, hospital
care, cardiology and care management.
- Signed contracts
with 16 new home health agencies in the US and 3 adult medical day
care facilities.
- Signed an
agreement with a US Contract Research Organization to use Reliq’s
iUGO Care software and Patient Engagement services to support their
oncology and other clinical trials.2. Notes on Accounts
Receivable
- Receivables aged
over one year as of March 31, 2022 have now been collected. These
receivables related to services delivered during the pandemic to
clients who were provided with flexible payment terms due to the
impact of COVID-19 on their businesses. Going forward receivables
are expected to be collected per the Company’s standard payment
terms.
- To date the
majority of the Company’s revenues have been generated through the
sale of devices. Subsequent to July 1, 2021 all device purchases
are associated with a subscription for software and services, and
therefore are a direct leading indicator of future software and
services revenue. Clients are offered 12- or 24-month payment plans
for hardware purchases. The Company charges a higher price for
devices that are paid for through payment plans and therefore
generates higher margin revenue for these devices. Because hardware
revenue is collected on a monthly basis over a 12- or 24-month
period per the purchase payment plan, the Company’s receivables
will continue to increase as device sales increase. This is as
expected and is not an indication that the receivables are at risk
of not being collected. As the Company’s software and services
revenue increases as a percentage of total sales, the outstanding
receivables as a percentage of total sales will decrease.
- Note that
revenue from hardware sales (corresponding to the total purchase
price of the devices) is recognized when the client takes
possession of the hardware. Hardware revenue is then received
monthly in accordance with the hardware purchase payment plan.
Software and services revenue is recognized on a monthly basis for
software and services delivered in the given month and is collected
monthly in accordance with the Company’s standard Net 60 day
payment terms.
3. Impact of COVID-19 on
Operations in Q3 FY2022Revenue for the quarter ending
March 31, 2022 was temporarily impacted by the COVID-19 surge
caused by the Omicron variant during the period from November 2021
through February 2022. During this period, many of the patients on
the iUGO Care platform contracted COVID-19. Some of these patients
became sufficiently ill that they required hospitalization or were
temporarily prescribed in person home care visits. Under the terms
of the Medicare and Medicaid virtual care programs leveraged by the
Company’s clients, clinicians cannot bill for many of the
proactive, preventative services delivered using the iUGO Care
platform for any month in which a patient receives acute care in
the form of hospitalization or prescribed in person home care
visits. The Company was therefore not able to provide billable
services to those specific patients during the month in which they
received acute care due to COVID-19, and as a result was not able
to bill the associated client for affected patients during the
acute care period. In addition, many of the Company’s physician and
home health agency clients and their clinical staff contracted
COVID-19 during the Omicron wave, which in some cases resulted in
longer training and patient engagement times for new patients. For
these clients this increased the time from which their patients
were onboarded to the point at which the Company was able to bill
for its services to over 90 days. Despite the challenges associated
with the Omicron variant surge, the Company’s software and services
revenue increased over 200% from Q2 to Q3.
While there is the potential for COVID-19 surges
in the future, these waves will only have a short term impact on
revenue. Overall the long term impact of the COVID-19 pandemic on
the Company’s business is strongly positive, as it led to a
significant increase in the scope and reimbursement levels of the
virtual care programs funded by the Centers for Medicare &
Medicaid Services, and drove a dramatic increase in acceptance and
adoption of virtual care solutions in the Community Healthcare
market. As a result, the market demand for the Company’s products
and services has increased exponentially over the last nine
months.
4. Date for Webinar to
Review FY2022 Annual Audited FinancialsThe Company’s
consolidated audited annual financial statements for FY2022 (year
ending June 30, 2022) are due to be filed on or before October 28,
2022. The webinar to review the financial statements will be
scheduled on or before October 29, 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 ContactLytham 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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