IR reply with specific YR 2020 signed contract detailsThis are my questions sent this week regarding contracts of YR 2020:
Hi Scott, Thanks for your previous prompt reply. I have some questions regarding contracts signed this year: (1) Are all the contracts signed outside of Texas purely for Medicare patients? And so far all contracts signed for Texas are for Medicaid patients? Are there any for Medicare patients in Texas? (2) Are contracts of a fixed time frame and with a minimum subscription reached before an extension to a longer term, meaning is there a trial period? (3) since the company does not assume face to face sales to patients and leave it to the healthcare agents then is there a mechanism the company can check into how much time and effort the sales is done? (4) since last February (signed agreement with Comprehensive Partners) has revenue been collected from any of the contracts up today? (5) I personally hold the belief that before the coming quarterly reports the continuous share price retreat since March can be only changed when the company resume guidance and visibility on cash flow, revenue and growth. Is it going to happen as a show of management’s confidence?
And IR reply today as follows: 1) Most of our partners (DigiiMed, MTE, DHP, Blum) work with insurance companies, physician ACOs or IPAs, skilled nursing facilities and long term care providers in addition to physician practices focused on Medicare patients. Reliq has contracts in Texas with physician practices that are serving Medicare patients and Maxlink Health is focused mainly on Medicare physician practices in Texas.
2) The contracts do not have a trial period. We have in the past had pilot contracts with customers but those were announced as such.
3) It is not true that Reliq does not have face to face time with customers. We are involved with almost every customer our partners are working with. Most sales calls include a Reliq business development, sales or implementation manager. The Reliq team tracks the progress of each individual account the Company’s partners are working on.
4) I am not able to provide information On specific accounts to individual investors that has not been made public due to selective disclosure regulations.
5) Reliq has been able to determine with more certainty each month the rate of onboarding and revenue collection in the new Covid environment. I expect guidance to resume in the near term.
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My comment here on the reply:
There could be onboarding going on (not 100% certain) but the tone of the reply does not tell much. Although the company is said to be on top of the sales activity they are entirely relying on the partners’ performance. They track the progress and appears to have close to no say in how pushy to run the sales.
What disturbs me is the lack of progress provided on each contract p when I bring up the declining share price. The usual excuses were used - nondisclosure agreement. They couldn’t even just say as legitimate as it can be like - “we are onboarding on all signed contracts, though progress varies with individual accounts”. So could it be a fact that some contracts still has zero onboards?
I believe Scott has done his job and whatever is sent must have the management checked and approved beforehand.