A follow up posting from @azzy_m over at ceo.ca Here it is. Really good info. Kudos to @azzy_m:
In reading some of the comments here, I wanted to go back and check my notes to see if there were any details I missed that may provide further colour to his responses. Not trying to take sides here but want to make sure all relevant info is presented.
On the extended payment terms piece, he used the following hypothetical: let's say a practice owed Reliq about 100k in fees. Although telehealth is not their core business, allowing them extended payment terms would help them keep staff and keep the business active. With them staying active, they could likely grow 2-3x over the years and would be a better partner to Reliq in the long term than them cutting staff, closing offices, etc, and being a smaller business or going under.
He also mentioned that most of the extended payment terms were for devices and the devices are not reimbursed all upfront. They are usually reimbursed piecemeal month over month so its not like the doctors were sitting on all this cash from reimbursements.
On a separate note, I emailed Scott a follow up question because I had forgot to ask it during the call:
Question: has any of the outstanding A/R as of Sep 30 been collected to date? If so, how much?
Answer: "We are collecting AR every month. I don’t know how much has been collected since the end of September but based on previous conversations with finance I would expect it to be in the hundreds of thousands of dollars this quarter."