Reliq Health Technologies Inc V.RHT

RE:RE:i finally have figured out why run rate 2m in Dec 2021

[mingzhu]

Thank you for the clarification. i think 75% margin is not software margin but the combination of soft and hardware. RHT has achieved 72% margin for combined revenue of sott and hardware in previous Q. If i put 75% for software margin in my equation for last Q, the hardware would be 59% margin which is too high for hardware sale, and CEO mentioned this Q hardware margin was too low, and she would change supplier. So if i put 75% for software, hardware would be even higher next Q. math is wonderful thing and very objective. In the equation all numbers are related, to change one number, another number has to change too. 90% software margin is very reasonable estimate 

theinvestor22 wrote: Good morning mingzhu.  As you know, the company didn't split out SaaS revenue for fiscal Q1 of 2022, but it can be calculated another way.  If you go to the fiscal Q2 2022 (31 Dec 2021) income statement, you'll find that 6 month services revenue was $888,431.  Deduct from that the 3 month services revenue of $524,547 and, voila, you get $363,884 for Q1 SaaS, which nicely rounds to $364k.

I like your thinking about patient onboarding, compliance and revenue recognition.  Quite insightful.  Just one caution, though.  While it might be reasonable to apply this approach to the upcoming quarter or two, covid might have played a big part in the slow ramp, so the underlying conditions might change going forward.

Just one small other point.  As I recall, one of your prior calculations used a 90% gross margin for the company's SaaS revenue.  Since Reliq's SaaS isn't the same as many other types of SaaS (think call centre, patient eligibility, billing, etc. involvement), I would think the gross margin should be lower.  The company says in pretty much every news release they expect a 75% gross margin, so I think we should go with that.  If I've recalled this incorrectly, please feel free to ignore this paragraph.

Have a great rest of weekend!

mingzhu wrote: with 40k patients resulted only in $1m SaaS revenue in Q1 2022. First, 3 months revenue delay, second,  it took 6 months for new boarded patients to comply from 0 to 60%, 12 months to 80%, and 90% thereafter. That means those 40k patients only be fully billable 90% in Q1 2023, not 2022.  CEO did not exagerate the run rate and 40k patients on board.

Here  are my revenue calculations based on compliance rate from 0 to 90% in comparison with real reported SaaS revenue in the past 3 Qs :

reported revenue: 364k(?)    525k    1,067k
My calcualtions :    265k      580k    966k

 I put ? on the 364k because i did not see 1.6m revenue breakdown of soft and hardware in that Q report. I took it  from Investor22 number. Investor22 may has to check the number again or give the source. People can see my calculations are really close to real numbers. Therefor I am so confident my estimated SaaS 1.9m revenue is very close to real number in incoming report. As for the 3.1m hardware revenue, it may be overstated a little because i presume every new patient needs a device, but that is not true. play on n safe side, the total revenue should be in the range $ 4m to $5.1m.