Reliq Health Technologies, Inc. Files Q1 FY 2023 Financial Statements, Announces Record Growth
November 29 2022 - 10:55PM
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 financial statements (“Financial
Statements”) and Management’s Discussion and Analysis (“MD&A”)
for the quarter ended September 30, 2022 (Q1 FY 2023), are now
available on the Company’s profile on SEDAR (www.sedar.com).
“We have now filed our financials for the first
quarter of Fiscal Year 2023,” said Dr. Lisa Crossley, CEO of Reliq
Health Technologies, Inc. “The Company achieved record revenues of
$3,472,237 for the three months ending September 30, 2022, despite
the significant impact the hurricanes during this period had on
patients and clinicians in Florida, Puerto Rico and the US Virgin
Islands. Software and services revenue continues to increase as
percentage of total revenue, consistent with the Company’s previous
guidance that high margin software and services will account for
the majority of its revenue in 2023 and beyond. Reliq remains on
track to onboard over 100,000 patients to the platform by the end
of December 2022 and over 200,000 by mid-calendar year 2023.”
“Subsequent to Q1 FY 2023, the Company added a
new market segment to its total addressable market - Skilled
Nursing Facilities (SNFs). SNFs represent a large and previously
untapped market for Reliq’s products. There are over 15,000 SNFs in
the United States and over 1.5 million Medicare patients received
care in a SNF setting in 2021 (www.cms.gov). Since October, 2022
the Company has signed contracts with Skilled Nursing Facility
networks in Florida and California to onboard 105 facilities to its
iUGO Care platform. These contracts are expected to add over 10,000
new patients per month to Reliq’s platform, or over 120,000
patients per year every year beginning in 2023. Reliq will provide
TCM to newly discharged patients from these SNFs at a rate of $60
per patient, with recurring revenue from RPM, CCM and BHI of
$65/patient per month, at 75% gross margin. The Company expects its
rapid expansion into the Skilled Nursing space to accelerate in
2023 as SNFs face increasing pressure from payors to reduce length
of stay for patients while also avoiding readmissions. Reliq’s iUGO
Care solutions improve post-discharge health outcomes for SNF
patients and reduce readmissions, while also generating new revenue
streams for the facilities.”
The Company is also pleased to provide the
following corporate update.
1. Highlights from Q1 FY 2023 Annual Audited Financial
StatementsDuring the three-month period ending September
30, 2022 and subsequent, the Company:
- Increased sales
for the three months ended September 30, 2022 by over 2X to
$3,472,237 relative to the three months ended September 30, 2021
($1,608,168).
- Increased
revenue from software and services by over 291% to $1,422,671
relative to the three months ended September 30, 2021 ($363,884).
Going forward the Company expects the majority of its revenue to
come from software and services vs hardware sales.
- Increased gross
profits for the three months ended September 30, 2022 to $2,174,595
(September 30, 2021 - $1,159,024). Gross margins for the period
were 60% due to a temporary increase in device costs which has
subsequently been resolved as the Company added new device
suppliers. Gross margins are expected to reach 75% in calendar year
2023 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.
- Loss for the
period improved by over 3,335% to $122,475 (loss) for the three
months ending September 30, 2022, as compared to $4,209,932 (loss)
for the three months ending September 30, 2021.
- 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 Q1 FY 2023 was $610,412, a
720% increase relative to the comparative period (Q1 FY 2022
adjusted EBITDA (gain) - $74,126).
- The Company
expanded into the Skilled Nursing Facility (SNF) market,
significantly increasing its total addressable market. There are
over 15,000 SNFs in the United States and over 1.5 million Medicare
patients received care in a SNF setting in 2021 (www.cms.gov).
- Signed a
contract with a network of Skilled Nursing Facilities in Florida to
deploy its iUGO Care platform in 90 facilities. The contract is
expected to add over 108,000 patients to the platform every year
beginning in 2023.
- Signed a
contract with a network of Skilled Nursing Facilities in California
to deploy its iUGO Care platform in 15 facilities. The contract is
expected to add over 12,000 patients to the platform every year
beginning in 2023.
- Signed a
contract with a large physician practice network in Florida to
onboard over 50,000 patients to its iUGO Care platform by the end
of 2023.
- Signed contracts
with 26 additional new clients including physician practices, home
health agencies, pain management clinics and rural health
clinics.
2. Notes on Accounts Receivable and Revenue from
Financing
- 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. Guidance for
2023
Given the impact on the business of the Omicron
wave of COVID-19 in the first half of Calendar Year 2022 and the
hurricanes in Texas, Florida and the US Virgin Islands in
September, 2022, the Company expects previously forecasted revenues
to be achieved approximately 4-6 months later than originally
anticipated. The Company currently has over $15 Million in device
orders from clients that it had originally expected to fulfill by
the end of Calendar Year 2022, but due to the conditions described
above clients asked to delay shipment of the devices for a number
of months. Since the Company recognizes revenue from devices only
once the customer has taken possession of the device, the $15
Million in revenue from these device orders will be received in the
first half of Calendar Year 2023 instead of in Calendar Year 2022
as initially expected. All device orders are associated with
software and services subscriptions and are therefore a leading
indicator of future software and services revenue.
4. Date for Webinar to
Review Q2 FY 2023 Annual Audited FinancialsThe Company’s
quarterly financial statements for Q2 FY 2023 (quarter ending
December 31, 2022) are due to be filed on or before March 1, 2023.
The webinar to review the financial statements will be scheduled on
or before March 2, 2023.
About Reliq HealthReliq Health
Technologies is a rapidly growing global healthcare technology
company that specializes in developing innovative Virtual Care
solutions for the multi-billion dollar Healthcare market. Reliq’s
powerful iUGO Care platform supports care coordination and
community-based virtual 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 Hea`lth Technologies trades on
the TSX Venture under the symbol RHT, on the OTC as RQHTF and on
the Frankfurt Stock Exchange under the WKN: A2AJTB.
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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