RE:RE:RE:RE:RE:RE:RE:Try this? SH deleted my post three times re PUMP AND DUMPMaybe they should re write the below response to the WhiteDiamond short report now that the alleged pump and dump is before the BCSEC?
The Company has become aware of an article published by a Company called White Diamond Research that is filled with misinformation, partial information and speculation not supported by the facts. Reliq has corrected and clarified the information below. We have also sent the article to our US Legal team to determine what recourse is available.
Reliq’s revenue has increased significantly the past few quarters and is expected to continue to grow, the software and professional services offerings have significantly expanded over the past few years, large and small customers continue to sign-up for the services across the US at a rapid rate and Reliq has successfully collected all older revenue and is now collecting newer revenue on a more timely schedule. Reliq has also gone through 2 audited annual financials with KPMG which are more costly than using lower tier accounting firms but worth it for the confidence it should bring to investors in the Company’s financial statements.
I won’t get into a lot of detail around the billing issues in 2018 since that is old news and has been discussed extensively other than to show the progress the Company has made since then. In 2017-2018 Reliq had 1 product (RPM software) for 1 market (Texas Medicaid) and today Reliq provides software and professional services (implementation, care management and billing) for over 10 programs with over 20 billing codes for Medicare in all 50 US States and territories, Medicaid RPM, private pay RPM and emergency alert at adult medical facilities, hospice at home, long term care facilities and skilled nursing facilities.
Reliq also in 2017-2018 relied on customers (Home Health Agencies and ACOs) to ensure patients were eligible and to bill correctly for reimbursement. As previously disclosed customers were not the experts in eligibility and builling that the Company expected. Since then, Reliq has become the expert in patient eligibility and billing and now provide those professional services to clients
Reliq did not restate revenue and did not admit to fraud in 2018. There was a press release in October 2018 that erroneously said the company was going to restate 2018 revenue but that corrected 2 weeks later during the year-end financial release. All uncollectable revenue due to billing issues by customers was moved to bad debt. This issue was reviewed extensively by both BCSC and TSX.V Regulators and in both cases, they did not require Reliq to make any changes to prior financials. All revenue in 2017 and 2018 was properly recognized.
Receivables have been discussed at length by the Company. Reliq extended payment terms to customers during Covid as did Reliq’s suppliers. All receivables older than 1 year have been collected and new receivables are being collected in a timely manner
Eugene Beukman and Aman Thindal did not found Reliq. Reliq was previously a Company called Moseda which hired Dr. Crossley who acquired the Care Kit technology that became Reliq.
CareKit had been in operation since early 2015 and was acquired by Reliq in February 2016. The founders and principals in CareKit were Leo Godreault and Giancarlo DiLeo. Both came to work for Reliq as part of the acquisition. Leo still works at Reliq. The founders started developing the product in early 2015 with help from the Ontario Telemedicine Network and presented the product in May 2015 at an e-health conference.
The CareKit Acquisition was for 600,000 shares in Moseda (approximately $120,000 at the stock price at the time) and $9,400,000 performance warrants at the current market price of $0.20. If the Company or the CareKit product did not perform well the shares and warrants would not be worth anything.
Dr. Crossley has not sold a single share of her Reliq stock and has invested hundreds of thousand dollars into the Company and recently exercised over $200,000 of options @$1.12 to show investors she has full confidence in the company.
Cognizant – The press release that Reliq put out (which was approved by Cognizant) clearly states the relationship between Cognizant and Reliq and has been publicly discussed many times. As has been publicly disclosed, Reliq is using Cognizant for Care Management for larger clients. This agreement allows Reliq to scale Care Managers faster and at a lower cost than the Company could do on its own (faster growth and lower costs – win/win for investors). In addition, it provides large customers with confidence to move forward with a small company like Reliq with Cognizant managing the Care Management for their account.
Cognizant has promoted the partnership on an earnings call, on twitter and on Facebook. They don’t do that with every “customer” they have. The Cognizant CEO specifically discussed Reliq in an earnings call along with Humana ($77 billion in revenue) during the healthcare segment. Cognizant has thousands of “customers” but chose to highlight their relationship with Reliq because they expect significant revenue to be generated from the relationship. Reliq or Cognizant IR can only provide to individual investors what has been publicly disclosed by their respective Companies due to selective disclosure laws.
Reliq has also disclosed that the two companies are working on providing Reliq’s iUGO solutions to new and existing Cognizant customers. Reliq and Cognizant have already submitted two RFPs to large health organizations and Reliq has been training Cognizant sales teams in the iUGO Care product. Conversion of large customers is a longer sales cycle and no announcement on new sales with Cognizant are expected until the second half of Calendar 2022 at the earliest.
Why hasn’t this been disclosed publicly by Cognizant? As a large Company ($45 billion market cap) their level of Material disclosure is much higher than Reliq.
As a note: Cognizant has complained to Reliq (as have many customers) about the overzealous (to put it nicely) Reliq investors calling Cognizant’s investor relations in an attempt to receive insider information about the partnership. This kind of activity is the reason Reliq very rarely mentions customer’s names in press releases.
Customers – Reliq has over 100 customers at all different levels of activity. Customers in Texas, Puerto Rico, California, and Nevada are growing the fastest as indicated by our recent press releases. Reliq has over 500k patients (excluding Blum and MaxMD) in the pipeline from existing contracts and 200k with defined implementation plans (again that does not include Blum or MaxMD).
Blum and MaxMD – These were two customers signed pre-covid that had active programs with Reliq before March 2020 and still have active contracts. With Blum specifically, we had defined implementation plans and onboarding scheduled for thousands of patients just as Covid hit. For many of Reliq’s customers, Covid presented challenges and opportunities. Some customers never fully recovered, and others delayed their implementations. All press releases with customers or partners quotes were written or edited and approved by the person providing the quote. The multiple Blum press releases were extremely complementary about the Reliq technology and team.
As previously disclosed, during Covid, all guidance was suspended due to the uncertainty of the timing of business. All guidance since Covid does not include any revenue from Blum or MaxMD but Reliq has had many customers that were inactive during Covid but have become very active during the last two quarters.