Post by
Mitch43 on May 30, 2023 11:01pm
news release
2. COMPANY HIGHLIGHTS During the three months ended March 31, 2023 and subsequent, the Company: • Increased net revenue for the three months ended March 31, 2023 by over 88% to $4,741,037 relative to the three months ended March 31, 2022 ($2,515,013). • Increased revenue from software and services by 69% to $1,804,891 relative to the three months ended March 31, 2022 ($1,067,426). Going forward the Company expects the majority of its revenue to come from software and services vs hardware sales. • Increased gross profits for the three months ended March 31, 2023 by over 95% to $3,201,727 (March 31, 2022 - $1,636,105). Gross margins for the period were 68% and are expected to exceed 70% by the end of calendar year 2023 due to reduced device costs and an increase in the percentage of the Company’s total revenues from higher margin software and services vs hardware. • The Company reported a gain of $731,017 for the three months ended March 31, 2023 as compared to a loss of (811,042) for the period ending March 31, 2022. After adjusting for non-cash expenses including share-based compensation, depreciation and accretion, and one-time non-reoccurring expenses including development costs associated with implementing the FHIR standard, the Company’s adjusted EBITDA (gain) for Q3 FY 2023 was $1,448,490 a 2,190% increase relative to the comparative period (Q3 FY 2022 adjusted EBITDA (gain) - $63,235). • Continued to expand in the Skilled Nursing Facility (SNF) space, adding over 120 new SNFs since January 1, 2023. • Signed a new contract with a large US healthcare system that operates over 1,200 care centers across seven US States, including Skilled Nursing Facilities (SNFs), hospitals, home health agencies, hospice agencies and primary care clinics. The healthcare system has more than 10 million patient encounters a year across their network. • Signed a new contract with a large US health plan that operates Accountable Care Organizations (ACOs) in five US States with over 3,000 doctors and more than 1,000,000 patients. Accountable Care Organizations (ACOs), are groups of healthcare providers who work together under a value-based care model to reduce healthcare costs and improve quality of care. The ACOs in this client’s network include over 3,000 physicians and serve more than a million patients. • Began the process of taking over Adherence Management for all clients as of January 1, 2023. As of March 31, 2023, the Company had assumed responsibility for Adherence Management for 30% of its existing clients and improved the average Adherence levels for the associated patients associated with these clients from <20% to approximately 70%. The Company expects to be managing Adherence for essentially all of its clients by the end of FY 2023 (June 30, 2023
Reliq Health Technologies Inc. Management’s Discussion and Analysis - Period Ended March 31, 2023 Financial Condition, Liquidity, and Requirements Outlook The Company’s cash balance and working capital position may not be able to sustain the Company’s existing operations. Major Contracts The Company has and may enter into major contracts that are complex and have several delivery milestones. These contracts are often subject to delay, change, revision and renewal. There is no guarantee that the Company can complete all activities on time and on budget and that the funding available will be adequate to meet adjustments to the contract. Failure by the Company to fulfill such contracts on a timely basis is a significant risk to the Company. Risk to Reputation Reputation is a critical asset in the investment industry. Potential damage to that reputation is a significant risk for the Company. Any of the risks identified herein could damage the Company’s reputation, which in turn, could result in a lack of client or employee confidence, legal liability and difficulties in raising capital. Risks Related to Investments The Company intends to expand its operations and business by investing in additional businesses, products or technologies. Investments may involve a number of special risks, including diversion of management’s attention, failure to retain key personnel, unanticipated events or circumstances, and legal liabilities. In addition, there can be no assurance that the businesses, products or technologies, if any, will achieve anticipated revenues and income. Investments could also result in potentially dilutive issuances of equity securities. The failure of the Company to manage its investment strategy successfully could have a material adverse effect on the Company’s business, results of operations and financial condition. Dependence on Key Personnel The success of the Company is largely dependent on the performance of its key senior management employees. Failure to retain key employees and to attract and retain additional key employees with necessary skills could impact the Company’s growth and profitability. The Company’s progress to date in commercializing its proprietary products has been dependent, to a significant extent, on the skills of its senior management. The departure or death of certain members of the executive team could have an adverse effect on the Company. The Company has experienced changes in its management personnel and further changes may occur in the future. The Company may face transitional difficulties in connection with these changes, and there can be no assurance that the Company will be able to attract and retain highly-skilled and qualified personnel to replace employees who leave the Company. Industry Growth There can be no assurance that the market for the Company’s existing products will continue to grow or that the Company will be successful in independently establishing markets for its products. If the markets in which the Company’s products compete fail to grow or grow more slowly than the Company currently anticipates, or if the Company is unable to establish markets for its new products, the Company’s operating results and financial condition could be adversely affected. Economic Slowdown From time to time markets have witnessed the weakening of global macro-economic conditions, including the current economic slowdown that may lead to a recession. This weakness could have adverse effects on the investments of the Company’s ability to continue as a going concern. However, the Company’s solutions create new revenue streams for its clients without requiring upfront investment. As a result, the Company expects demand for its products to continue to grow even if the economy contracts further. Management of Future Growth and Expansion Planned expansion of the Company’s business and its future success will depend on its ability to manage growth as it expands its products and marketing capacities, which may place a significant strain on the Company’s management resources, employees and operations, as well as its ability to finance such growth. To manage growth effectively, the Company will be required to continue to implement changes in certain aspects of its business, expand its operations, and develop, train, manage and assimilate an increasing number of management-level and other employees. If management is unable to manage growth effectively, the Company’s business, prospects, financial condition and operating results could be affected. Reliq Health Technologies Inc. Management’s Discussion and Analysis - Period Ended March 31, 2023 Legislative, Insurance, Compliance Costs, Regulatory Action and Environment To comply with various increasing and complex regulatory reporting and standards involves significant cost. Changes to securities regulatory standards, accounting policies, and compliance reporting could place an additional expense burden on the Company. Insurers may increase premiums as the Company’s business continue to grow so future premiums for the Company’s insurance policies, including directors’ and officers’ insurance policies, could be subject to increase. 14. INFORMATION REGARDING FORWARD LOOKING STATEMENTS This MD&A contains certain forward-looking statements. Forward-looking statements include but are not limited to the timing and amount of estimated future program development, costs of production, capital expenditures, permitting timelines, currency fluctuations, requirements for additional capital, Government regulation, environmental risks, disputes or claims and limitations on insurance coverage and the timing and possible outcome of pending litigation. In certain cases, forwardlooking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes” or variations of such words and phrases, or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others; the actual results of current activities, conclusions or economic evaluations, changes in project parameters as plans continue to be refined, failure of plant, equipment or processes to operate as anticipated, accidents, delays in obtaining government approvals or financing, risks relating to the integration of acquisitions and to international operations. While the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise except as required by law. DISCLOSURE CONTROLS AND PROCEDURES AND INTERNAL CONTROLS OVER FINANCIAL REPORTING Disclosure controls and procedures (“DC&P”) are intended to provide reasonable assurance that material information is gathered and reported to senior management to permit timely decisions regarding public disclosure. Internal controls over financial reporting (“ICFR”) are intended to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with IFRS accounting principles. TSX Venture-listed companies are not required to provide representations in their annual and interim filings relating to the establishment and maintenance of DC&P and ICFR, as defined in Multinational Instrument MI 52-109. In particular, the CEO and CFO certifying officers do not make any representations relating to the establishment and maintenance of (a) controls and other procedures designed to provide reasonable assurance that information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation, and (b) processes to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for externa purposes in accordance with the issuer’s GAAP