HAMILTON, Ontario, Nov. 29, 2022 (GLOBE NEWSWIRE) -- 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 Statements
During 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 Financials
The 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 Health
Reliq 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:
Investor Relations at firstname.lastname@example.org
US Investor Relations Contact
Lytham Partners, LLC
New York | Phoenix
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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.