Reliq Health Technologies Inc V.RHT.H

Misreading the MD&A???

[mcv1]

There is clearly a disconnect between the October 15th new release stating cash flow positive this quarter and the MD&A talking about onboarding 10,000 new patients by December 31, 2019.

I think people may be misreading the MD&A. I believe in the context of the paragraph the 10,000 patients are new ones since onboarding was restarted. I believe it does not include all the patients from Paz, Rio Grande etc. which is supposed to be 48,000 total patients based on an April 2018 investor presentation. So if you add the 10k +48k patients you get 58k patients. I am assuming $30 per patient since most are at $50/ month from the old Paz & Rio Grande contracts you get: 58,000 patients X $30/ month X 3 months = $5.22 million. Q4 had expenses of $4.75 million. So if expenses don't go up much in Q1 and Q2 then cash flow positive is reasonable to assume.

Just because we don't see the revenue in June 2019 might be because they didn't getting the billing issues sorted out until summer to get paid from Paz and Rio Grande. I don't know if this is case. I may be totally wrong and 10k is the total number of patients. But this makes no sense since there were 12k patients onboarded in April 2018 and I doubt this number went down. I believe it went up and we are just starting to collect revenues from these clients.

Would be useful if someone clarified this point with Lisa. People may be needlessly panicking by misreading the MD&A. Any comments?