Reliq Health Technologies, Inc. Files Q2 FY 2023 Financial Statements, Announces Record Revenues of $12.6M for Calendar Year 2023
March 01 2023 - 9:06PM
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 condensed interim consolidated
financial statements (“Financial Statements”) and Management’s
Discussion and Analysis (“MD&A”) for the quarter ended December
31, 2022 (Q2 FY 2023), are now available on the Company’s profile
on SEDAR (www.sedar.com).
“We have now filed our financials for the second
quarter of Fiscal Year 2023,” said Dr. Lisa Crossley, CEO of Reliq
Health Technologies, Inc. “The Company achieved record revenues of
$4,118,524 for the three months ending December 31, 2022, and
$12,683,030 for the twelve months ending December 31, 2022.
Software and services revenue continues to increase as percentage
of total revenue, increasing over 229% to $1,727,817 relative to
the three months ended December 31, 2021 ($524,547). This is
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. As discussed on our last webinar in January,
2023, the Company has prioritized increasing the pace of
Collections and reducing the Time to Adherence for patients. Over
the last two months the Company has made significant progress on
both initiatives and expects to be current on Accounts Receivable
and to have taken over management of adherence for all new and
existing clients by the end of the fiscal year (June 30,
2023).”
The Company is also pleased to provide the
following corporate update.
1. Highlights
from Q2 FY 2023 Interim Financial Statements
During the
three-month period ending December 31, 2022 and subsequent, the
Company:
- Increased sales for the three months
ended December 31, 2022 by over 90% to $4,118,524 relative to the
three months ended December 31, 2021 ($2,140,124).
- Increased revenue from software and
services by over 3X to $1,727,817 relative to the three months
ended 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 three months ended September 30, 2022 by 121% to
$2,561,929 (December 31, 2021 - $1,159,024). Gross margins for the
period were 62% 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 decreased by 97% to $71,254 (loss) for the three months
ending December 31, 2022, as compared to $2,155,111 (loss) for the
three months ending December 31, 2021.
- After adjusting
for non-cash expenses including share-based compensation,
depreciation and accretion, and one-time non-reoccurring expenses
including development costs associated with implementing the FHIR
standard, the Company’s adjusted EBITDA (gain) for Q2 FY 2023 was
$723,339, a 1,405% increase relative to the comparative period (Q2
FY 2022 adjusted EBITDA (gain) - $48,062).
- 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 189 facilities. The contract is
expected to add over 206,000 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.
2. Notes on
Time to Adherence
- In calendar year 2022, the Company
allowed clients to manage patient adherence on their own, based on
clients’ assertions that they had the necessary resources and
expertise to take on this responsibility. This resulted in delays
in billing, as Reliq can’t deliver billable services to clients
unless their patients are adherent (collecting vitals at least 16
days out of each month).
- The Company has
conclusively demonstrated that adherence is achieved much sooner if
Reliq manages the process instead of clients. As a result, the
Company has made the following changes to its business model:
- As of January 1,
2023, all new contracts specify that clients must authorize Reliq
to contact patients in order to ensure adherence. Account Managers
are working with existing clients to obtain similar
authorizations.
- The iUGO Care
platform has been updated to provide timely alerts to Care Managers
if a patient is at risk of non-adherence for a given month.
- Reliq is
leveraging its Interactive Voice Recognition (IVR) technology to
provide daily reminders to patients who are non-adherent.
- Reliq Care
Managers will call patients who need additional adherence
support.
3. Notes on
Accounts Receivable
- In calendar
years 2021 and 2022, the Company was very accommodating to clients
and provided flexible payment terms in response to challenges they
faced (COVID, overall market conditions, etc.), in order to
demonstrate good faith and earn a reputation as a trusted partner
in the healthcare market. This resulted in longer collection times
but was critical to ensuring the long-term success of the
Company.
- As of January 1,
2023, all Reliq Account Managers have been instructed to make
collections their top priority. The Company expects to be current
on its Accounts Receivable by the end of FY 2023 (June 30,
2023).
- 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.
4. Dates for
Upcoming Webinars
The Company’s
quarterly financial statements for Q2 FY 2023 (quarter ending March
31, 2023) are due to be filed on or before May 30, 2023. The
webinar to review the financial statements will be scheduled on or
before May 31, 2023. The Company will also hold an additional
webinar on April 12, 2023 to provide an interim update on progress
in key areas.
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 Health 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
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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
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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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