VitalHub Reaches Profitability in Q1 While Recognizing $2.9 Million in Revenue
May 29 2018 - 12:11PM
VitalHub Corp. (the “Company” or “VitalHub”) (TSXV:VHI) announced
today it 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 at
www.sedar.com.
When asked to comment on the results of Q1 2018, VitalHub CEO
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 licenses, 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 H.I. Next Inc. (“HI Next”) was completed on
January 10, 2018. HI Next owns “TREAT”, a web‐based electronic
health record and care coordination platform built for health care
providers. HI Next has historical unaudited revenues of $2.695
million, $3.329 million and $3.572 million for the previous three
fiscal years (2015, 2016 and 2017).
- On January 19, 2018, the Company completed the
acquisition of Clarity through the purchase of select
assets of Clarity Healthcare Solutions (“Clarity”). 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 2172.3% 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
to a net loss of $365,213 in the previous period. Adjusted EBITDA
for the three months ended March 31, 2018 was $750,875 compared to
adjusted EBITDA of ($284,007) in the previous period.
- During the period, the Company sold a license to a
customer which granted such customer a nonexclusive,
transferable, perpetual, irrevocable, worldwide and royalty free
license of the HI Next software. During the period, the Company
recognized $1,613,362 of perpetual license fees and $58,015 of
services revenue, with the remaining balance of $1,719,499 in
deferred revenue.
- On January 30, 2018, the Company announced it had
joined Hyperledger and an elite group of healthcare
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 healthcare sector. With a dedicated Blockchain
development team, the Company is committed to helping the
healthcare 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 February 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 (“BH-IT”) funding
program for adult behavioural health home and community-based
service (“BH-HCBS”) 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 (“EHR")
to support their child and adult inpatient 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, ON, Canada; HKS
Counselling Services, ON, Canada; United Chiefs and Councils of
Mnidoo Mnising, ON, Canada; Alzheimer’s Society of Toronto, ON,
Canada; and Stella’s Place, ON, Canada.
SUBSEQUENT EVENT
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:
VitalHub uses web, mobile, and Blockchain technology to create
disruptive SaaS-based healthcare 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.
The Company has a robust two-pronged growth strategy, targeting
organic growth opportunities within its product suite, and pursuing
an aggressive M&A plan. Currently, VitalHub serves 200+ clients
across North America. VitalHub is based in Toronto, Canada, with an
offshore development hub in Sri Lanka. The Company is publicly
traded on the TSX Venture Exchange under the symbol "VHI".
CAUTIONARY STATEMENT
The TSX Venture Exchange has in no way passed upon the merits of
the transactions and has neither approved nor disapproved the
contents of this press release. Neither the TSX Venture Exchange
nor its Regulation Services Provider (as that term is defined in
the policies of the TSX Venture Exchange) accepts responsibility
for the adequacy or accuracy of this press release.
CONTACT INFORMATION
Dan Matlow Chief Executive Officer, Director (416) 727-9061
dan.matlow@vitalhub.com
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