Reliq Health Technologies Inc V.RHT.H

RE:New Press Release - Reliq Health Technologies, Inc. Provides Update on Status of Management Cease Trade Order

[lscfa]

Auditors likely scrutinizing the nature of the contracts between Reliq and clients. Reliq records full purchase price of hardware as revenue when device is shipped but 9 months later client still has not made a single monthly payment because patient has not activated the device yet.

One of the things that we've learned that I found very interesting when our care managers started reaching out to patients who are not adherent, so once we contacted the existing clients and gotten permission to contact the patients about adherence, it turned out -- in a large number of the cases, the issue is that the patient had received the hardware, it might have been six or nine months previously but were still waiting for a call for their -- from their doctor to teach them how to use the unit or even just tell them, okay, you should start collecting your data and I'll be checking in on you.