Reliq Health Technologies Inc. (RHT:TSX.V; RQHTF:OTCQB; A2AJTB:WKN) is onboarding 500 patients in Florida, Nevada and the Virgin Islands to its expanded mental health services portfolio, part of its iUGO Care platform, and expects to add another 10,000 by year-end, according to a news release. Reliq develops and provides software-as-a-service solutions for delivering virtual medical care to patients.
"The company expects to generate an average revenue of $576 per patient per year, or $48 per patient per month, for these patients at 70% gross margin," Chief Executive Officer (CEO) Chris Shields said in the release.
Using this component of iUGO Care, Reliq's hardware and software solution, clinicians may identify and treat patients with undiagnosed mental health needs, as explained in the release. Eligible patients will receive ongoing behavioral health or collaborative care management services, for which their physician will pay Reliq's standard monthly subscription fees. In addition, patients will receive two cognitive assessments per year, for which their physician will pay Reliq a one-time, per-assessment fee.
In other news, Reliq's board has appointed Kevin Cornish as the company's new chief financial officer following the resignation of Michael Frankel. A certified public accountant with a Master of Business Administration degree, Cornish has 17 years of leadership experience in finance, strategy and operations. In the past he has worked with various start-ups and guided companies through turnarounds successfully.
"Mr. Cornish possesses the critical skills and experience that will enable Reliq to continue to grow its business in size and complexity," Shields said.
More revenue growth expected
Headquartered in Ontario, Canada, Reliq provides modular software solutions and care management services via its iUGO Care platform.
These comprehensive turnkey solutions benefit health care providers, patients and payers, the company noted in its investor presentation. It affords clinicians an easy way to provide a wide range of virtual healthcare services to their at-risk patients and to seamlessly launch these new billable offerings. Patients, even ones with complex health situations, receive high-quality care in the home, leading to improved outcomes that ultimately improve their and their family's quality of life. This approach reduces the costs of care delivery, a positive to payers.
Reliq, profitable since Q1/23, is currently in a period of rapid growth, the company said. Its revenue more than doubled between fiscal year 2022 (FY22) and FY23 and are expected to do the same in FY24.
Driving the health care tech firm's organic growth is recurring revenue from its SaaS subscriptions. Revenue from software and services increased by more than two and half times between FY22 and FY23 and is expected to more than triple in FY24.
Most recently, Reliq expanded an existing contract with a large U.S. health plan operating accountable care organizations and health maintenance organizations in five states and encompassing more than 3,000 doctors and 1,000,000 patients, noted a news release. As a result, about 50,000 of these patients are to be onboarded to the iUGO Care platform by the end of 2025.
Last year, as announced in a separate news release, Reliq signed its first contract with an entity in Mexico, a health care organization in San Luis Potosi.
Sector Expansion to Continue
The virtual health care market in the U.S. is forecasted to expand at a 30.75% compound annual growth rate between 2022 and 2030, according to Grand View Research. In 2021, the market was valued at US$4.2 billion.
Mainly fueling this growth will be the continuous development of advanced technologies, increasing patient demand and regulatory reforms, the report said. Another driver will be the shortage of physicians in the country.
The Catalyst: More Business
Investors can expect catalysts for Reliq in the form of it landing additional contracts and further onboarding patients to its virtual health care platform, the company said.
Reliq is currently rated Buy, by at least one analyst, Allen Klee with Maxim Group.
Jefferson Research's analysis of Reliq's last reported quarter's performance highlighted strong earnings quality as operating cash flow increased during the three months. Balance sheet quality also was strong given better receivables and inventory positions.
This growing company in an expanding sector warrants consideration by investors, experts said.
Ownership and Share Structure
According to Reuters, three strategic investors own 1.76%, or 3.87 million (3.87M) shares, of Reliq. These individuals are Reliq's former CEO and director Lisa Crossley with 1.59% or 3.51M shares, Co-founder Eugene Beukman with 0.1% or 0.23M shares and former Reliq board chairman Brian Storseth with 0.06% or 0.14M shares.
A total of four institutions hold 2.81% or 6.2M shares of Reliq. They are Seven Canyon Advisors Inc. with 2.27% or 4.99M shares, StoneCastle Investment Management Inc. with 0.27% or 0.6M shares, Penserra Capital Management LLC with 0.26% or 0.58M shares and FNB Wealth Management with 0.01% or 0.03M shares.
Retail investors own the remaining 95.43%.
In terms of share structure, Reliq has 220.16M outstanding shares and 216.29M free float traded shares.
The company's market cap is CA$34.79 million. Over the past 52 weeks, Reliq's stock has traded between CA$0.19 and CA$0.66 per share.
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