Reliq Health Technologies Inc. (RQHTF) Files Quarterly Financial Statements, Provides Corporate Update

As previously announced, Reliq will be hosting a webinar today, March 3^rd at 9:00am EST at http://bit.ly/39LtXMy.  For those who are not able to attend the webinar, a recording of the webinar will be available on the Company’s website immediately following the session.  A written summary of the material updates to be presented in the webinar is also provided below.

Agenda for Webinar

1. Highlights from Q2 FY2020 Financial Statements
2. Review of key new contracts
3. Review of Behavioral Health billing codes
4. Review of Call Center support services
5. Update on Guidance
6. Date for next quarterly call

1. Q2 FY2020 Financial Statements

The quarterly financial statements for Q2 FY2020 (quarter ending December 31, 2019) have been filed on SEDAR under the Company’s profile.

Highlights:

• Revenues increased by 56% over the previous quarter.
• The Company came within $77,000 of cashflow positive, with one-time expenses including payment of outstanding legal fees from the litigation concluded in July, 2019 and payment for outstanding contract development fees accounting for the higher than projected expenditures.
• Subsequent to the quarter ending December 31, 2019, the Company received gross proceeds of $998,925 from option exercises by employees and consultants.
• The Company does not expect to need to raise funds to reach profitability in 2020.

2. Review of New Contracts

As previously disclosed, the Company has signed several significant new contracts, in keeping with its strategy to expand throughout the US and to focus on clients with larger patient populations.  The new clients include:

• Comprehensive Partners – Over 25,000 eligible Medicare patients across Florida to be onboarded onto the iUGO Care Remote Patient Monitoring (RPM) and Chronic Care Management (CCM) platform.  Go-live was March 2, 2020.
• MaxMD – Reliq has partnered with MaxMD, a leading US provider of secure healthcare information technology and interoperability solutions.  MaxMD has customers in all 50 States and Puerto Rico, including hospitals, outpatient facilities, health departments, commercial payors and Medicare & Medicaid.  The partnership allows MaxMD to offer their clients new options to expand access to care, improve health outcomes and reduce healthcare costs by using Reliq’s iUGO Care Remote Patient Monitoring (RPM) and Chronic Care Management (CCM) platform, and enables Reliq to “plug and play” with multiple complex legacy clinical information systems using MaxMD’s powerful interoperability technology.
• Blum Telehealth – Over 50,000 eligible Medicare patients receiving care through more than 150 Rural Health Clinics (RHCs) and Federally Qualified Health Centers (FQHCs) throughout Louisiana to be onboarded onto the iUGO Care CCM and BHI platform.  Go-live scheduled for April 2020.

In order to secure these larger scale contracts and prepare for go-lives in March and April, the Company redirected many of its resources away from Texas for the past few months.  Normal operations are expected to resume in Texas in early Q4 FY2020.

3. Review of Behavioral Health Billing Codes

Behavioral Health Integration (BHI) enhances standard primary care by adding two key services: care management support for patients receiving behavioral health treatment and regular psychiatric inter-specialty consultation.  Integrating behavioral health care with primary care can improve outcomes and reduce healthcare costs associated with ER visits and inpatient admissions for the millions of Americans with mental or behavioral health conditions.  Reliq’s new iUGO Care BHI module allows clinicians to leverage the Centers for Medicare & Medicaid Services (CMS) billing codes for General BHI Services and Psychiatric Collaborative Care Model Services (CoCM) to improve patient care and generate substantial new revenues for their practices.  These billing codes include:

• CPT 99492: Initial psychiatric care management (70 minutes)

             o   Approximately $162 USD per patient

• CPT 99493 – Ongoing psychiatric care management (60 minutes per month)

             o   Approximately $129 USD/patient/month

• CPT 99494 – Additional 30 minutes/month of psychiatric care management

             o   Approximately $67 USD/patient/month

• CPT 99484 – General BHI care management services (20 minutes per month)

             o   Approximately $48 USD/patient/month

4. Review of Call Center Support Services

As previously disclosed, the Company opened a US Sales Office and Call Center in Port St Lucie, Florida to provide paid support services for its clients, including onboarding, training, patient engagement and case management.  The services Reliq is able to offer through the Call Center are a key differentiator for the Company and were critical to securing the large-scale contracts the Company recently announced (as described in Section 2 above), and will generate up to $52 per patient per month in revenue for services, which is in addition to the standard monthly subscription fees for the iUGO Care Software as a Service.

5. Update on Guidance

Going forward the Company will provide guidance in terms of revenue and margins instead of patient numbers since the revenue generated per patient varies significantly depending on the payor (Medicare, Medicaid or private insurer) and the products and services provided.  As larger scale deployments using the Call Center are part of a new business model for the Company, management will provide detailed guidance for the rest of calendar 2020 early next quarter (Q4 FY2020 / Q2 CY2020) after the first few large clients have gone live.  Generally, the Company expects revenues to increase by 50-100% each quarter through fiscal year 2020, with revenue growth accelerating significantly in fiscal year 2021 (July 1, 2020 – June 30, 2021).