Q1 2020 Reliq Health Technologies Inc Earnings Call
VANCOUVER Jul 7, 2020 (Thomson StreetEvents) -- Edited Transcript of Reliq Health Technologies Inc earnings conference call or presentation Monday, December 2, 2019 at 2:00:00pm GMT
TEXT version of Transcript
* Lisa Crossley
Reliq Health Technologies Inc. - CEO & Director
Lisa Crossley, Reliq Health Technologies Inc. - CEO & Director 
Hello and welcome to Reliq Health Technologies Corporate Update for December 2, 2019. Thank you very much for joining us. My name is Lisa Crossley, and I'm the CEO at Reliq Health.
Before we get started, I will just provide a little context and say that this webinar will be fairly brief. Our previous webinar was just over a month ago, and it's been a very busy month for us, but also a bit of a short month with the U.S. Thanksgiving and then keeping our U.S. clients busy. So this will be a fairly brief update, but certainly, we'll be keeping in touch regularly going forward.
So this one is focused really just on the quarterly financials for Q1 fiscal year 2020. And as I say, as other material developments occur, we'll certainly be scheduling follow-up webinars to update the market as appropriate.
Reminder that this presentation will contain some forward-looking statements and to please interpret those according to this disclaimer.
Reminder for those of you who might be new to the story that Reliq Health Technologies is a health care technology company that's headquartered in Hamilton, Ontario, Canada. Most of our clients are in the United States, and we have U.S. offices in both Florida and Texas.
Today's webinar, we will review the first quarter fiscal year 2020 financials. Our fiscal year is July 1 to June 30, so these financials cover the period from July 1, 2019 to September 30, 2019. In addition, I want to talk just a little bit about our change of auditor and the rationale for that and how that change is progressing. I'll review our forecast for fiscal year 2020, and then we'll talk about the date for the next quarterly update so everyone can get that on their calendar.
So the first quarter fiscal year 2020 financials, again, July 1 to September 30, 2019. In this quarter, the company's revenues exceeded the total revenues for all 4 quarters of fiscal year 2019, so definitely, we're moving in the right direction. As I've said on previous webinars and in previous news releases, the company expects to double revenues quarter-over-quarter, for the remainder of fiscal year 2020 at least, so this is really just the beginning of a significant uptick in the revenues that we expect to bring in.
And another point we wanted to highlight around the company's current cash position, which we are quite happy with, is that subsequent to Q1 fiscal 2020, so subsequent to September 30, 2019, i.e., in the last 2 months, the company has received gross proceeds of over $2 million from warrant exercises and over $250,000 from stock option exercises. So in combination with revenues, we're very comfortable with our current cash position.
In terms of capital needs, I know we've discussed this previously, but I think it bears reiterating. The company is on track to reach profitability in Q3 fiscal 2020, which, again, is the quarter ending March 31, 2020. We currently have assets or inventory with a market value of over $3 million, and that's the ForaCare D40g blood pressure and blood glucose monitoring devices, at which most of our shareholders are aware we own. These can be sold at a profit independent of iUGO subscriptions as needed.
So what that means is, while we typically sell these 2 clients and to deploy to patients who are going to be onboarded onto our system and where necessary, we can sell the hardware on its own -- I think in the last quarterly presentation, I used the word we can liquidate the inventory and perhaps that gave some listeners the mistaken impression that we would be looking to sell this hardware at or below -- or rather below market value. That is not the case.
These devices have market value. They are certainly in high demand in the market, and so we have the option going forward to monetize that asset by selling these at a profit, either as part of our subscription model or independently to generate free cash. And as a result, the company does not anticipate needing to do an equity raise in fiscal year 2020, even independent of the hardware assets, and we are not contemplating an equity raise in fiscal year 2020 at this point. And we do not believe that one will be needed in order to take us to profitability.
All right. A minute or 2 of your time for a discussion of the change of auditor. As we disclosed last month, for this fiscal year and beyond, the company has moved to working with KPMG LLP as our auditors. We are working with audit partners out of the Hamilton office. That is much more convenient for me since I am based out of the Hamilton office as well. And certainly, we'll make things simpler going forward during the quarterly review than during the annual audit.
Moving to one of the big 4 audit firms is something that the company has been planning on for quite some time and very pleased to be able to execute on that plan last month. It's part of our ongoing commitment to continuously improving and optimizing our financial controls and compliance. And it's also -- I think it's been very important for the company to be able to complete the due diligence process with KPMG. It was certainly an intensive due diligence process that started last spring, and we're very happy that KPMG is in a position where they're a company taking us on as a client and are excited about working with us as we are excited about working with them.
There are a number of reasons for moving to one of the big 4 audit firms. We certainly thank our previous auditor for all of his hard work and support over the years. But having one of the big 4 firms is a big competitive advantage when it comes to working with large U.S. clients and partners, which, as I've mentioned previously, is really the direction the company is going in and working with larger multi-state and even multinational clients and partners in the next fiscal year -- in this fiscal year and beyond.
It's something that I think really helps to provide credibility to the company in the eyes of partners and clients and also just provides that assurance to clients, partners and to shareholders that there is that oversight and those financial controls and put plans in place. It's also critical to our plans, which we discussed many times over the last few years. But at the appropriate time, certainly, the company's intent is to uplist to either the TSX and/or the NASDAQ. And in order to do that, I think having one of the big 4 audit firms as a partner from this point on is really critical.
One of the advantages is working with one of the really big firms is not only do you have that kind of reputational advantage of working with KPMG, but they have considerable breadth in terms of the expertise and additional services that we're able to access as and when we need them, and this would include advice on cross-border transactions on establishing U.S. entities, on tax implications of doing business in the various jurisdictions. So there's a lot of value that we'll get out of this partnership, and it's definitely something that I think is very timely for the company. It's very important, and we'll be happy that we have that in place now.
I'm just going to reiterate or revisit our fiscal year 2020 forecast. We discussed this on the last webinar, but I think for anyone who's new to the story who's a recent investor, it certainly bears repeating. We will be cash flow positive by the end of this quarter. So by the end of December 2019, we expect to achieve profitability in the next quarter. So by the end of March 2020 and beyond that, we're looking at quite rapid growth.
So as I've said, we expect to at least double revenues every quarter for the next 3 quarters, this quarter included. And beyond that, we certainly are continuing to anticipate very rapid growth. It is the kind of business where securing that initial customer base is really the toughest step, that first step. And as we continue on, it's essentially auto-catalytic, so it becomes easier to attract and onboard new clients.
And as I've said in previous webinars and in news releases, we are looking at moving up to a different scale of client and partner as we move forward and have already announced a client who has pharmacies in over 10 states. So we now have clients in over 15 states in the U.S. as well as in Australia and Canada. And we'll be continuing to work with, I think, the larger scale clients as we move forward. So we do anticipate a very significant growth in not just fiscal year 2020, but also in calendar year 2020.
The last thing that I will say in this brief update is our Q2 fiscal year 2020 financials are due on or before March 2, 2020, which means that a webinar to discuss those financials specifically will be scheduled on or before March 30, 2020. Obviously, as we move forward, we'll be looking to turning around our financials a little quicker in anticipation of an uplift, where we would need to have the financials prepared and released or filed at an earlier date than on the venture exchange.
We'll see how that goes this quarter as we're just beginning to work with the new auditors. But should that -- the financials be filed prior to March 2, the webinar will be scheduled accordingly for prior to market open the next day. In the interim, I certainly expect that we will have occasion to host a webinar prior to March 3. And as we have material news to disclose and to discuss with our shareholders, we will schedule webinars as appropriate so that we can explain some of the more material developments that take place with the company as we continue to grow and expand.
But in the meantime, we wanted to thank everyone very much for taking a few minutes out of your day today to review our quarterly financials and to allow us to give you some of these updates. We look forward to touching base again in the new year. I hope everyone has a very happy holidays, and I hope our U.S. clients and partners had a wonderful U.S. Thanksgiving. And we'll speak to you all again very soon. Thanks.