Reliq Health Technologies Inc V.RHT.H

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:CEO Chris

[lscfa]

Shields is confused. He says co. was not cash flow positive because it had to raise money but also says that raise was for growth (not to keep the lights on).
 

• (1) “So as we put in the filing documents, the majority of the funds from the private placement are put towards growth with our new clients. I could go through the list, but a lot of it is in hiring new staff and travel, since we’re now starting with these new clients to be operating in states that we didn’t have physical footprints. So we have implementation teams that now go to those states to help onboard the large skilled nursing facility that is in eight states. Most of those states are states we haven’t previously operated in. So we have to bring our staff in early on and then backfill by hiring additional staff physically in those states. And there’s a lag between bringing people on, getting them trained, onboarding the clients, and then when the clients start to get reimbursed for those patients, and then pay us.”
• (2) “It’s hard to say whether we need a raise or not. … We could sign an additional several large U.S. health plans or Medicare Advantage plans and require more funds for growth. So it’ll depend on the growth rate and how quickly between the start of onboarding of these new clients and them getting the patients on, getting their reimbursement, and us billing for services. That lag time will determine if we need additional funds. … No, we’re not [cashflow positive] because we just needed to raise money. If we were cashflow positive, we wouldn’t have had to raise the additional capital."