Mr. Dan Matlow reports
VITALHUB REACHES PROFITABILITY IN Q1 WHILE RECOGNIZING $2.9 MILLION IN REVENUE
Vitalhub Corp. has filed its consolidated financial statements and management's discussion and analysis report for the quarter ended March 31, 2018, with the Canadian securities authorities. These documents may be viewed under the company's profile on SEDAR.
When asked to comment on the results of Q1 2018, Vitalhub chief executive officer Dan Matlow said: "We are starting to realize the impact of our strategy as we combine our acquisitions for the first time. As a company with an M&A based strategy, we are focused on the adjusted EBITDA number which is solid. Although we experienced some one-time revenue gains through the sale of perpetual licences, our overall deferred revenue for active contracted projects and our overall sales pipeline remains strong. We will continue to work on integrating the companies, optimizing our cost structure, improving efficiencies and increasing our sales presence for our new projects such as the WellLinc blockchain and mobile solution."
Highlights for the quarter ended March 31, 2018, include:
The acquisition of HI Next Inc. was completed on Jan. 10, 2018. HI Next owns TREAT, a Web-based electronic health record and care co-ordination platform built for health care providers. HI Next has historical unaudited revenues of $2,695,000, $3,329,000 and $3,572,000 for the previous three fiscal years (2015, 2016 and 2017).
On Jan. 19, 2018, the company completed the acquisition of Clarity through the purchase of select assets of Clarity Healthcare Solutions. Clarity develops and deploys a Web-based interface and data entry solution to perform in-patient assessments for long-term care providers. Clarity had approximately $200,000 in revenue in its last fiscal year.
Revenue for the three months ended March 31, 2018, was $2,923,390, representing an increase of 2,172.3 per cent over revenues of $128,653 in the same period last year.
The company reached profitability for the three months ended March 31, 2018, with net income of $6,350 as compared with a net loss of $365,213 in the previous period. Adjusted earnings before interest, taxes, depreciation and amortization for the three months ended March 31, 2018, were $750,875 compared with adjusted EBITDA of ($284,007) in the previous period.
During the period, the company sold a licence to a customer which granted such customer a non-exclusive, transferable, perpetual, irrevocable, worldwide and royalty-free licence of the HI Next software. During the period, the company recognized $1,613,362 of perpetual licence fees and $58,015 of services revenue, with the remaining balance of $1,719,499 in deferred revenue.
On Jan. 30, 2018, the company announced it had joined Hyperledger and an elite group of health care companies including Aetna, Change Healthcare, Eli Lilly & Company, and PwC, which are early adopters of Hyperledger technologies, and are building production deployments of blockchain solutions across the health care sector. With a dedicated blockchain development team, the company is committed to helping the health care industry use blockchain solutions, which hold the promise of unifying disparate processes, increasing data flow and liquidity, reducing costs, and improving patient experience and outcomes.
On Feb. 7, 2018, the company announced
the introduction of WellLinc, a proprietary electronic health record interoperability solution powered by blockchain technology. WellLinc leverages blockchain technology to address multiple challenges associated with the exchange of health information across the continuum of care. The company has chosen the mental health space as an initial area of focus, both due to the size of the market opportunity and the serious gaps that exist in mental health care delivery resulting from inadequate access to available patient health information.
For the quarter ended March 31, 2018, the company added 16 new customers in New York state, through the Behavioral Health Information Technology Grant Program funding program for adult behavioural health home and community-based service providers. The company will have an opportunity to expand its number of New York state customers, as they experience continued success with implementations across the BH-IT program.
Manitoba's Northern Regional Hospital has licensed the company's B Care electronic health record software to support their child and adult in-patient and community mental health programs. This sale is the first implementation of an EHR and the interRAI Child and Youth Mental Health (ChYMH) and Adolescent Supplement to support the province's Healthy Child Manitoba program. This implementation will serve as a demonstration site that will be evaluated for applications across the rest of the province.
The company signed several additional contracts in the quarter including: Bluewater Health, Ontario, Canada; HKS Counselling Services, Ontario, Canada; United Chiefs and Councils of Mnidoo Mnising, Ontario, Canada; Alzheimer's Society of Toronto, Ontario, Canada; and Stella's Place, Ontario, Canada.
Subsequent to the quarter, Vitalhub and EY Canada's health practice formally agreed to work together on a co-marketing initiative to bring WellLinc to market on a global basis. Vitalhub's WellLinc solution uses blockchain technology to enable the secure and interoperable exchange of electronic health data, across the continuum of care. The relationship with EY Canada health practice will afford Vitalhub with reach and access into a significant global distribution network across the target customer demographic.
About Vitalhub Corp.
Vitalhub uses Web, mobile and blockchain technology to create disruptive software-as-a-service-based health care applications that solve industry-wide problems. Vitalhub's aim is to create high-value, secured solutions that enable broad interoperability among existing health data systems. Vitalhub is primarily focused on working with organizations in the mental health and long-term care space, to further extend organization's applications across the continuum of care, powered by the security, efficiency and trust of blockchain technology.
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