Dr. Lisa Crossley reports

RELIQ HEALTH TECHNOLOGIES, INC. FILES Q3 FY 2023 FINANCIAL STATEMENTS, ANNOUNCES RECORD REVENUE AND FIRST EBITDA POSITIVE QUARTER

Reliq Health Technologies Inc.'s condensed interim consolidated financial statements and management's discussion and analysis for the quarter ended March 31, 2023, are available on the company's profile on SEDAR.

"We have now filed our financials for the third quarter of fiscal year 2023," said Dr. Lisa Crossley, chief executive officer of Reliq. "The company achieved record revenues of $4,741,037 for the three months ending March 31, 2023, and had our first profitable quarter with a gain from operations of $731,017. Software and services revenue continues to increase as percentage of total revenue, increasing over 69 per cent to $1,804,891 relative to the three months ended March 31, 2022 ($1,067,426). This is consistent with the company's previous guidance that high-margin software and services will account for the majority of its revenue by the end of 2023 and beyond. Since Jan. 1, 2023, the company has added over 120 new skilled nursing facilities to its client base and signed new contracts with a large U.S. health care system client and a large U.S. health plan. It is a tremendous validation of Reliq's unique value proposition that we are able to attract these very large clients. We expect to see increasing traction with large clients through the remainder of 2023 and beyond."

The company is also pleased to provide the following corporate update.

1. Highlights from third quarter fiscal 2023 interim financial statements

During the three-month period ended March 31, 2023, and subsequent, the company:

• Increased sales for the three months ended March 31, 2023, by over 88 per cent to $4,741,037 relative to the three months ended March 31, 2022 ($2,431,511);
• Increased revenue from software and services by over 69 per cent to $1,804,891 relative to the three months ended March 31, 2022 ($1,067,426); the company expects the majority of its revenue to come from software and services versus hardware sales by 2024;
• Increased gross profits for the three months ended March 31, 2023, by 95 per cent to $3,201,727 (March 31, 2022: $1,636,105); gross margins for the period were 68 per cent and are expected to exceed 70 per cent by the end of calendar year 2023 due to reduced device costs and an increase in the percentage of the company's total revenues from higher-margin software and services versus hardware;
• The company reported a gain of $731,017 for the three months ended March 31, 2023, as compared with a loss of ($811,042) for the three months ended March 31, 2022;
• After adjusting for non-cash expenses, including share-based compensation, depreciation and accretion, and one-time non-reoccurring expenses, including development costs associated with implementing the FHIR standard, the company's adjusted EBITDA (gain) for Q3 FY 2023 was $1,448,490, a 2,190-per-cent increase relative to the comparative period (Q3 FY 2022 adjusted EBITDA (gain): $63,235);
• Continued to expand in the skilled nursing facility (SNF) space, adding over 120 new SNFs since Jan. 1, 2023;
• Signed a new contract with a large U.S. health care system that operates over 1,200 care centres across seven U.S. states, including skilled nursing facilities (SNFs), hospitals, home health agencies, hospice agencies and primary care clinics; the health care system has more than 10 million patient encounters a year across its network;
• Signed a new contract with a large U.S. health plan that operates accountable care organizations (ACOs) in five U.S. states with over 3,000 doctors and more than one million patients; accountable care organizations (ACOs) are groups of health care providers who work together under a value-based care model to reduce health care costs and improve quality of care; the ACOs in this client's network include over 3,000 physicians and serve more than a million patients.

2. Notes on adherence and accounts receivable:

• The company began the process of taking over adherence management for all clients as of Jan. 1, 2023. As of March 31, 2023, the company had assumed responsibility for adherence management for 30 per cent of its existing clients and improved the average adherence levels for the associated patients associated with these clients from less than 20 per cent to approximately 70 per cent. The company expects to be managing adherence for essentially all of its clients by the end of FY 2023 (June 30, 2023).
• The company expects to have all clients caught up on accounts receivable by the end of FY 2023 (June 30, 2023).

3. Dates for coming webinars

The company will host webinars in mid-July and early September (exact dates to be determined) to provide interim updates on progress in key areas.

About Reliq Health Technologies Inc.

Reliq is a rapidly growing global health care technology company that specializes in developing innovative virtual care solutions for the multibillion-dollar health care market. Reliq's powerful iUGO Care platform supports care co-ordination and community-based virtual health care. iUGO Care allows complex patients to receive high-quality care at home, improving health outcomes, enhancing quality of life for patients and families, and reducing the cost of care delivery. iUGO Care provides real-time access to remote patient monitoring data, allowing for timely interventions by the care team to prevent costly hospital readmissions and emergency room visits. Reliq trades on the TSX Venture Exchange under the symbol RHT, on the OTC as RQHTF and on the Frankfurt Stock Exchange under the WKN: A2AJTB.

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