Reliq Health Technologies Inc V.RHT.H

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

HAMILTON, Ontario, Nov. 14, 2023 (GLOBE NEWSWIRE) -- Reliq Health Technologies Inc. (TSXV:RHT or OTC:RQHTF or WKN:A2AJTB) (“Reliq” or the “Company”), a rapidly growing global healthcare technology company that develops innovative Virtual Care solutions for the multi-billion dollar Healthcare...read article.

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Every other co. puts a new expected date in their biweekly default NRs but not Reliq.    e.g.  "In a follow up to the Company’s bi-weekly status update of February 16, 2023, the Company continues to work towards finalizing its Annual Filings and expects to be in a position to file on or before March 31, 2023."  

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2 yrs in a row audited results are delayed. Will anyone believe the unaudited quarterly reporting? Also, don't believe the revenue growth no.s Crossley keeps bragging about. Those revenue no.s are largely hardware where co. records the full sale price immediately but collects it over 12 to 24 months starting when the client finally gets the damn patient to adhere.

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  I guess we should have expected it     Qtr ending Mar 22 Mar 23 Trade receivables  2,458,888 (e) 2,924,708 Long Term Receivables 5,156,222 (e) 18,290,711 Total

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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

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Years ago Crossley said "contracts" were 5 years. Has been mute every since. With the 2 year payment plans for hardware, are contracts now 2 years with hardware and SAAS bundled together? If clients are making bundled payments, and only if patients are compliant, auditors may make co. change the way hardware revenue is recorded. No more all upfront reporting.  

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What changed since last year's audit? Reliq stated that beginning with f2023 it only sells hardware with a SAAS service. Thus it can be argued that the performace obligation is one of supplying the hardware AND the service and they are not distinct obligations. Therefore the hardware revenue should not be recognized as a lump sum at the point when the device is delivered to the client's

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If the fins for q1,q2,q3 are restated for this almost all the hardware revenues disappears and so does the long term receivables. How will market react?