Reliq Health Technologies Inc V.RHT.H

CEO Chris

[AricanTwin]

Most important Chris’s remark ….. With our limit to the capital markets we have less capital available for growth than we could take advantage of. As soon as we get back to trading, we’ll have access to additional capital if needed. Collections has eased somewhat our cash burden, but we were on a very extensive growth phase, which required a lot of capital.

[kusio1]

So more dilution? What are they going to do? A raise at 2 cents US?

[lscfa]

I think Crossley bs-ed the device manufacturers into supplying the devices on the same 24 month payment plans as Reliq was supposed to be collecting from patients. But Reliq's failed effort to collect the monthly payments from patients in a timely fashion spooked device suppliers. Now they want Reliq to pay for the damn devices upfront. This will take huge captial. At $300/device it means

[lscfa]

Correction: the $300 figure is Reliq's revenue. Assuming 50% margin device cost is $150 so 100,000 patients means $15M in capital required.

[kusio1]

That is a plausible scenario. So 12mln at 2 cents per share, adjusted for currency exchange would mean about 430mln shares issued in order to get 100,000 more of non-paying patients. Holy mother of dilutions

[lscfa]

You missed the point. Positive cash flow from operations is not large, say $2M/qtr, so that will only buy 13,000 additional devices per qtr. That's the pace of growth unless Reliq raises additional capital.

[EdinColorado]

This seemed to be as concerning to me: "We’ve been adding clients on a regular basis, but we probably have toned back a bit on the growth just to conserve cash."  Does that mean they have a wait list, a backlog, or they've quit seeking contracts? The secrecy seems as present after the interview as before. I liked that the host kept pushing on reporting financials and

[kusio1]

There is no positive cash flow from operations,  that's the entire problem. The 13k per quarter growth wouldn't be a problem, because then the subsequent quarter would grow by 17k, then 23k, etc (3 patient fees paying for one device).  But there is no growth, because there is no cash, because they aren't getting paid

[kusio1]

What they are doing now is trying to justify issuing couple hundred millions of shares for a cent or two each, so that some gullible people might believe it is for 'growth' and they get to pay their salaries for a bit longer.

[lscfa]

Stop looking in rear view mirror....Co. was nearly cash flow positive in March 2023 qtr. and trending in right direction....March 2024 must be cash flow positive. Assumptions: fx effects removed from editda calc as it vacillates and averages out over time. Revenue and costs of devices are not cash flows as payments received over 24 months so all device  margin is removed to simply even

[kusio1]

They explicitly told you in the interview (with Chris Shields) that they aren't cash flow positive. I am not sure how much more proof do you need

[lscfa]

Use your brain. Shields talking about an accounting term "cash used in operating activities", which includes changes in non-cash working capital items. Economic reality is closer to my no.s.

[kusio1]

I am well aware of what cash flow is, what it's accounting meaning is. How you got conclusion from (paraphrasing) "well, we wouldn't have to raise money if we were cash flow positive" which was said in the interview? - I have no clue. The fact stands. As recently as January 2024 current CEO said they aren't cash flow positive. How you arrive at your conclusions which are in

[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