Co. Adding 500 Patients to Its Mental Health Care Platform

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 US$576 per patient per year, or US$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 successfully guided companies through turnarounds.

"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 healthcare 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 for 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 is expected to do the same in FY24.

Driving the healthcare tech firm's organic growth is recurring revenue from its SaaS subscriptions. Revenue from software and services increased by more than two and a 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, encompassing more than 3,000 doctors and 1,000,000 patients, noted in 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 healthcare organization in San Luis Potosi.

Sector Expansion To Continue

The virtual healthcare 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 healthcare platform, the company said.

Reliq is currently rated Buy by at least one analyst, Allen Klee, with Maxim Group, according to TipRanks.

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 was also strong, given better receivables and inventory positions.

This growing company in an expanding sector warrants consideration by investors, experts said.

Ownership and Share Structure

About 8% of Reliq's shares are owned by insiders, including former Chief Executive Officer Lisa Crossley, with 1.6% or 3.51 million shares.

About 0.3% of the company is owned by institutional investors, including FNB Wealth Management, with 0.01% or 0.03 million shares, according to Reuters.

Other top investors include Eugene Beukman, who owns 0.10% or 0.23 million shares, and Brian Storseth, who owns 0.06% or 0.14 million shares, Reuters said.

The company said 91.7% of the company is retail.

The company has 220.16 million shares outstanding, with about 216 million free-floating. It has a market cap of CA$53.88 million and trades in a 52-week range of CA$0.66 and CA$0.195.

Important Disclosures:

1. Reliq Health Technologies is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000. 
2. Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
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