Mr. Jay Bedard reports

CLOUD DX REPORTS FY2022 RESULTS

Cloud DX Inc. has released its results for the 12 months ending Dec. 31, 2022.

Earnings call webinar:

• Monday May 15, 2023, 11 a.m. PT (2 p.m. ET);
• Register on-line.

Summary of results:

• Revenue:
  • For the year ended Dec. 31, 2022, total reported revenue of $1,166,003 increased by $383,706, or 49 per cent, compared with the same period in 2021.
  • Product revenue more than doubled, by $316,633, or 108.3 per cent, while subscription revenue increased by $142,791, or 38.6 per cent, versus FY 2021, due primarily to new patient enrolments in Canada and the United States.
  • These positive results show that Cloud DX revenues from new and expanded contracts are accelerating year-over-year.
  • Professional services revenue decreased by $75,718 due to fewer customization, integration and optimization contracts invoiced in the period.
  • Government grant funding was $493,962 in FY 2022, a 59-per-cent decrease from FY 2021 due to the timing of payments on active grants. Fluctuations in professional services revenue and grant funding amounts from period to period is not unusual.
• Expenses:
  • Annual operating expenses decreased $389,568, or 3.6 per cent, in the year compared with the same period in 2021, mainly due to a 93-per-cent decrease in stock-based compensation, offset by increases in salaries, wages and benefits reflecting recent inflation.
  • Cost of sales in Q3 increased by $71,819 in 2022, due to purchase of additional inventories of Connected Health kits and adjustments to COGS (cost of goods sold).

Please see the Q3 consolidated financial statements and Q3 MD&A (management's discussion and analysis) for more details.

Customer statistics FY 2022

The company executed or extended 28 new commercial contracts as of Dec. 31, 2022, compared with 12 contracts/extensions in all of 2021, an increase of 233 per cent.

In the United States, contracts were signed with large clinical practices in Massachusetts, Pennsylvania, Michigan and Alaska. Oregon Health and Science University extended their contract to use Connected Health to educate nurses on remote patient monitoring (RPM).

In Canada, notable contracts include a unique partnership with Equitable Life, and the first Medtronic Canada hospital contract. In 2022, the company was awarded six contracts for RPM with five paramedic services in Ontario, for community long-term care.

On Aug. 8, 2022, Cloud DX announced a partnership with Teladoc Health, the largest telemedicine provider in the world. Teladoc Health delivers care through video to over 55 million people annually. The agreement includes integration of Teladoc software into Cloud DX Connected Health, which is now being jointly marketed to providers in Canada, the U.S. and other countries.

On Nov. 8, 2022, the company announced the continuous connected patient care (CCPC) project, led by Cloud DX and Medtronic, in partnership with St. Paul's Hospital, Providence Health Care, Simon Fraser University, 3D Bridge Solutions Inc. and Excelar Technologies. This $12.8-million project received $5.2-million in non-dilutive funding from the digital technology supercluster.

Subsequent events

The company announced a private placement on Jan. 20, 2023, offering investors units consisting of one common share and one share purchase warrant, priced at 14 cents per unit. The term of the warrants is three years, with an exercise price of 21 cents/share. If the company's stock trades at or above 42 cents/share for 20 consecutive days, the term of the warrants is reduced to 15 days from the date of notice. In connection with the closing of the first tranche of the private placement on March 15, 2023, investors subscribed for 18,584,878 units at a price of 14 cents per unit for aggregate gross proceeds of $2,601,884.

The company has announced 15 new or extended contracts to date in 2023, including new contracts with Canadian hospitals, community care organizations and paramedic services.

About Cloud DX Inc.

Accelerating digital health care, Cloud DX is on a mission to make health care better for everyone. Its Connected Health remote patient monitoring platform is used by health care enterprises and care teams across North America to virtually manage chronic disease, enable aging in place, and deliver hospital-quality postsurgical care in the home. The company's partners achieve better health care and patient outcomes, reduce the need for hospitalization or readmission, and reduce health care delivery costs through more efficient use of resources. Cloud DX is the co-winner of the Qualcomm Tricorder XPRIZE, 2022 Top Innovator by Canadian Business, a 2021 Edison Award winner, a Fast Company World Changing Idea finalist, and one of Canada's 10 most prominent telehealth providers. Cloud DX is an exclusive partner to Medtronic Canada, Teladoc Health Canada and Equitable Life of Canada.

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