Telehealth company Reliq Health Technologies Inc. (RHT:TSX.V; RQHTF:OTCQB; A2AJTB:WKN) expects to collect over US$5 million in payments for fiscal year 2023 ending in June, compared to US$2.5 million in fiscal years 2021 and 2022 combined.
The company expects to be profitable for the quarter and initiate a share buyback program this year, Chief Executive Officer Lisa Crossley said during a webinar with shareholders this week.
"We're going to have a much more comfortable cash position in the remainder of 2023 than we have the last few years," Crossley said. "So that's a very nice position for the company to be in."
Crossley said the company does not expect to need to raise capital in 2023 and expects to uplist to the NASDAQ exchange in the second half of the year.
"We are working hard to achieve the revenue milestones and certainly the adherence and collection milestones that will allow us to proceed with that," she said.
Technical analyst Clive Maund recommended the stock shortly after news broke last year that the company's cash intake went up 485% from the fiscal year 2021 to the fiscal year 2022.
In an April 3 note, Sadif Analytics also upgraded RHT to Above Average from Average.
The company "has fair financials and good earnings quality," the note said, adding the stock was "safe."
Technical analyst Clive Maund of CliveMaund.com recommended the stock shortly after news broke last year that the company's cash intake went up 485% from the fiscal year 2021 to the fiscal year 2022. Writing for Streetwise Reports, he said he would "stay long" on the stock.
The global telehealth market Reliq serves is anticipated to reach US$380 billion by 2023, according to a Research and Markets report.
The pandemic "led to increased awareness about telemedicine solutions, propelled the adoption rates among patients and providers, and increased the investment activities in the market," the report said.
The Catalyst: Rising Revenues, Collections
Earlier this year, the company reported that revenue from software and services from its iUGO platform continued to increase.
It had revenues of CA$4.12 million for the second quarter of the 2023 fiscal year, compared to CA$2.14 million during the quarter that ended Dec. 31, 2021. For the 12 months ending Dec. 31, 2022, it had revenues of CA$12.68 million.
Reliq has said it expects to accelerate its growth "significantly" this year after its cash intake went up 485% to CA$8.6 million from the fiscal year 2021 to the fiscal year 2022.
The global telehealth market Reliq serves is anticipated to reach US$380 billion by 2023, according to a Research and Markets report.
One issue the company has faced has been collecting outstanding balances from clients. Crossley said the company had collected over US$1 million in payments since Jan. 1.
"I really need to stress the majority of that collection took place in the last few weeks," she said. "So, it takes a little while to mobilize our clients. And we gave the account managers their sort of marching orders at the beginning of January to go out and enforce collections and get these payment plans put in place."
All Reliq clients are now signed up for payment plans, and clients have started making payments, Crossley said.
"We expect to be caught up on receivable collections by the end of June 2023," she said.
Reliq has also had issues with patients adhering to the iUGO platform. The company is taking over responsibility for that for all clients, using voice recognition or automated phone calls to provide daily reminders to non-adhering patients.
"Our existing clients previously had adherence levels for their patient populations that were below 30% as of the end of the 2022 calendar year," Crossley said. "We've taken over adherence for over 30% of those existing clients to date. … By the end of June, we expect that figure to be essentially 100% or very close."
Largest Client Going Live
This week, Reliq announced it had signed seven new contracts with physician practices and home health agencies in Nevada and Texas.
It also said it has started onboarding patients for its largest client yet, a healthcare system with more than 1,200 care centers in seven states that are expected to add over 2,000 new patients per month to the iUGO platform with an average revenue of US$65 per patient per month.
Crossley has said the company services more than 100,000 on iUGO and expects to have as many as 200,000 patients on the platform by the middle of 2023.
Streetwise Ownership Overview*
Reliq Health Technologies Inc. (RHT:TSX.V; RQHTF:OTCQB; A2AJTB:WKN)
Diseases the platform aims to manage include chronic obstructive pulmonary disease (COPD), congestive heart failure, diabetes, hypertension, and others. Patients get audible reminders to step on a scale, take their blood pressure, or prick their fingers for glucose monitoring. The information is automatically uploaded to the cloud.
iUGO draws on data from fall detection devices, medication tracking, and vitals data to flag patients at home or in facilities who need additional monitoring.
Ownership and Share Structure
About 8% of Reliq’s shares are owned by insiders, including Crossley, with 1.6% or 3.22 million shares. About 0.3% of the company is owned by institutional investors, including FNB Wealth Management, with 0.02% or 0.03 million shares, according to Reuters.
Other top investors include Eugene Beukman, who owns 0.11% or 0.23 million shares, and Brian Storseth, who owns 0.07% or 0.14 million shares, Reuters said.
Crossley said 91.7% of the company is retail.
The company has 200.58 million shares outstanding, with about 197 million free-floating. It has a market cap of CA$106.25 million and trades in a 52-week range of CA$0.81 and CA$0.36.
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Disclosures for Sadif Analytics, April 3, 2023:
This report is for information purposes only and is not a solicitation or advice to buy or sell any security. The data contained within this report is not warranted to be accurate or complete. This report is only intended as a summary of SADIF's stock ratings and not a recommendation for stock purchase or sale. Redistribution of this report without explicit permission is strictly prohibited. All logos are the copyright property of their respective companies and are used here only to aid the reader in identification of the subject of the article. The author of this article does not hold a position in any of the companies featured within this report.
