Mr. Chris Cosgrove reports

COMPREHENSIVE HEALTHCARE SYSTEMS INC. PROVIDES CORPORATE UPDATE AND STRATEGIC PLAN

Comprehensive Healthcare Systems Inc. has provided its company update for Q1 2024.

Comprehensive Healthcare Systems is pleased to provide an update on the business ending Feb. 29, 2024.

Key highlights:

• Completed major operational restructuring, resulting in significant cost savings.
• Achieved realignment of cost structure to current revenue base.
• The company expects to report positive EBIDTA (earnings before interest, taxes, depreciation and amortization) on an adjusted go-forward basis in Q1 2024, not including legacy payments and extraordinary items, against an average cash loss of over $300,000 (U.S.) per month as reported in the quarter ending Sept. 30, 2023. This does not include legacy payables under previous management and extraordinary items.
• Implemented price rationalization across the client base to account for increased inflation, resulting in enhanced revenue.
• Well positioned to explore additional revenue opportunities from current client base.
• Strong pipeline of new business development opportunities.
• Internalized technology team and reduced reliance on third party vendors, resulting in better quality control and improved performance for clients.
• Strengthened management team in areas of operations and technology.
• Improved customer experience: Customer support response improved 300 per cent year-over-year.
• The company continues to diligence strategic opportunities that could enhance shareholders' value.

Operational improvements

Having completed the company's organizational restructuring in Q3/Q4, fiscal year 2023, has allowed Comprehensive Healthcare to complete the rollout of its new development and support strategy. The company implemented a strategy to secure and internalize its fulfillment team and discontinued using third party vendors. This has resulted in a significant saving for the company. The company and its clients are also seeing the positive effects from those efforts. Client support response has improved by almost 300 per cent year-over-year, and the company's new client engagement methodology has improved the level of client satisfaction, utilizing a better communication process and hitting committed delivery dates.

As Comprehensive Healthcare implements new clients this year, it will be utilizing a new methodology which leverages preferred content from some of the company's strongest clients in the market. This will allow the company to accelerate delivery, reduce cost and drive speed to value for its clients. These strategies are all geared toward Comprehensive Healthcare's goal of an industry-leading client experience.

Financial metrics improvements

As these changes have had a positive effect for the company's clients, they have also done the same for Comprehensive Healthcare's financial health. Better delivery has driven down the company's costs of sales, driving increased EBITDA profitability. Comprehensive Healthcare is pleased to report that the company has made significant improvements in aligning its cost structure to the current revenue base. The company expects to report positive EBIDTA on an adjusted go-forward basis in Q1 2024, not including legacy payments and extraordinary items, against an average cash loss of over $300,000 (U.S.) per month, as reported in the quarter ending Sept. 30, 2023. This does not include legacy payables under previous management and extraordinary items. This puts Comprehensive Healthcare on a path to being in better financial health and in a better position to invest more in its technology, cybersecurity protocols and product enhancements this year.

While the financial performance has improved, like other small-growth companies, Comprehensive Healthcare continues to look at additional capital options. The company is in active discussions with potential strategic investors to secure more robust working capital cushion, and to implement organic and acquisition-based growth strategies. This will allow the company to expand its sales and marketing efforts, along with product and technology advancements.

Growth -- organic/inorganic

Comprehensive Healthcare continues to see a high demand for its solutions in the market. The company's unique ability to deliver a fully integrated solution, supporting all aspects of the benefits management continuum, including, but not limited to: Member engagement, eligibility, claims adjudication, annuities, cobra and reporting/analytics, allows the company to stand alone in a market that is highly fragmented. An integrated solution allows clients to leverage one vendor for their technology requirements, bringing them more capabilities which can streamline their processes and reduce costs of managing multiple vendors. With over 1,200 Taft Hartley unions, and 130,000 third party administrators (TPAs) throughout the United States, the company has a large addressable market to cater to.

Comprehensive Healthcare is one of only a few providers that provides a fully integrated health care benefits administration software platform to the Taft Hartley unions, which self-administer their health care plans, which gives the company a great opportunity to secure future contracts. The company is pleased to report that it has a strong pipeline of business development opportunities, and it will vigorously pursue these prospects during the year 2024.

The opportunity to grow through acquisition is also an initiative for 2024. In a highly fragmented market, having the ability to leverage more capabilities, technology and tech-enabled services allows the company to provide more value for its clients, and drive larger revenue growth in the market. The TPA market has been a very active space for acquisition opportunities.

With the company's software's ability to automate up to 80 per cent of the claims adjudication process, it is a natural fit for Comprehensive Healthcare to bring TPAs into the company's Novus360 technology platform. The market growth for the TPAs is driven by the rise in adoption of TPAs in the health insurance industry, rise for need for operational efficiency and transparency in the health insurance business, and technological advancements in TPA services. In a report titled "Insurance third party administrator market" published in September, 2023, Allied Market Research projects this global market to reach $795-billion by 2032.

Comprehensive Healthcare currently has identified at least two targets for acquisition and is evaluating ist acquisition financing options to advance such transactions.

Moving forward

Over the next few quarters, the company will continue to work to refine its new processes as Comprehensive Healthcare continues to increase its ability to drive high levels of satisfaction to its new and existing clients.

As the new leadership team has taken over, Comprehensive Healthcare will also continue to focus on managing the past payables and debt that had been incurred by previous leadership, and work to drive that down over the next couple years.

"We are excited to have transformed Comprehensive Healthcare into a cash flow positive business on a go-forward basis, with a very focused go-to-market strategy and message," cited Chris Cosgrove, Comprehensive Healthcare's chief executive officer. "With a fully integrated platform, along with a host of tech-enabled solutions to complement the technology, it provides us a unique competitive market advantage which will allow us to drive significant growth."

About Comprehensive Healthcare Systems Inc.

Comprehensive Healthcare Systems is a corporation incorporated under the laws of the Province of Alberta and is the parent company of Comprehensive Healthcare Systems Inc. (Delaware). The company is a vertically integrated software-as-a-service (SaaS) company focused on digitizing health care with health care benefits administration solutions, providing reliable and high-volume transaction capable systems. The company's state-of-the-art Novus360 health care welfare and benefits administration (HWBA) SaaS platform is used by clients for all aspects of health care benefits administration (including self-financed employers, providers and labour unions), providing health care administrative software and technology-enabled services.

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