Reliq Health Technologies Inc. (TSXV:RHT or
OTCQB:RQHTF) (“
Reliq” or the
“
Company”), a technology company that develops
innovative mobile health (mHealth) and telemedicine solutions for
the community-based healthcare market, today provided an update on
the ongoing litigation the Company had previously announced in a
news release on February 26, 2019.
As disclosed in the Company’s February 26, 2019
news release, Reliq Health Technologies Inc. had previously
commenced actions against Stephen Samson, Boby Deveros, Claudio
Damaso, George Rayner, Shelby Neal, Accuhealth Technologies LLC,
Evelyn Technologies LLC, and Evelyn Technologies Canada Inc. in the
Ontario Superior Court of Justice, the Superior Court of the State
of Delaware and the US District Court, Southern District of Texas,
Houston Division.
The Company is pleased to announce that Reliq
and all of the defendants have agreed to settle all claims and
causes of action between them, and are currently finalizing the
documents necessary to implement the settlement. The
settlement with Ms. Neal is subject to the satisfaction of certain
agreed conditions.
The Company also announced today that as a
result of a review by the TSX Venture Exchange, Reliq is providing
the following clarification of a previous disclosure.
On October 16, 2018, the Company issued a press
release stating it had decided to restate certain financial
information reported for the quarter ended March 31, 2018. In
that release, the Company further stated that it would issue
restated Q3 interim financial statements upon the completion of the
June 30, 2018 audit. The audited financial statements were
filed on October 29, 2018. Following discussions with the
Company’s auditors which took place after the October 16, 2018
press release but before the audited financial statements were
filed on October 29, 2018, it was determined that it would be more
appropriate to reflect the impact of the collection issues by
recognizing bad debt of $1,137,170 in Q4 FY2018 instead of
restating revenues for Q3 FY2018. The bad debt was recorded in the
annual audited financial statements filed on October 29, 2018 and
was discussed in the accompanying annual MD&A. This
position was taken for the revenue recognized from January 1, 2018
to March 31, 2018 because, at the time, some or all of the
outstanding revenue was believed to be collectible.
The Company’s news release issued on February
26, 2019 should not have referred to a “restatement”, but rather to
the events that led to the October 16, 2018 announcement of a
restatement. As described above, a restatement was ultimately
determined not to be the appropriate treatment of the collection
issues, which were recognized instead as bad debt as described
below.
As disclosed in the Company’s annual audited
consolidated financial statements for the year ended June 30, 2018,
the Company recognized revenue that is consistent with paragraph 20
of IAS 18 – Revenue (“IAS 18”), that is (1) the amount of revenue
can be reliably measured, (2) it is probable that economic benefits
associated with the transaction will flow to the Company, (3) the
stage of completion at the balance sheet date can be measured
reliably, and (4) the costs incurred, or to be incurred, in respect
of the transaction can be measured reliably. The Company’s
financial statements are prepared using management’s estimates,
judgments and assumptions as at the date of the reporting.
Consistent with IAS 8 – Accounting policies, changes in accounting
estimates and errors (“IAS 8”), hindsight should not be used when
applying a new accounting policy to, or correcting amounts for, a
prior period, either in making assumptions about what management’s
intentions would have been in a prior period or estimating the
amounts recognized, measured or disclosed in a prior period.
The decision to recognize bad debt of $1,137,170 in Q4 FY2018
instead of restating revenues was made in accordance with IAS 8 as
described above.
In addition, the Company wishes to clarify the
reason behind the decrease in the reported number of patients
onboarded from March 31, 2018 to March 1, 2019. As of March
31, 2018, the Company reported over 12,000 patients
onboarded. As disclosed in the Company’s press release on
October 16, 2018, the Company had encountered unanticipated issues
with patients’ eligibility and the manual claims submission
process, and had ultimately determined that it would likely be
unable to collect revenue for an - as of October 16, 2018 - still
to be determined number of these patients. As disclosed in
the Company’s MD&A for the quarter ended December 31, 2018, the
Company’s focus for November and December 2018 was the screening of
these patients for eligibility and the removal of any patients who
were ineligible for reimbursement for Reliq’s services from its
platform. In early 2019 the Company determined that as of
December 31, 2018 there were 2,713 patients of the original 12,000+
patient population who both still required Reliq’s services and
were eligible for reimbursement for telemonitoring services, and
the Company therefore reported this number in the quarterly
financial statements issued March 1, 2019 as the total number of
patients onboarded and billable as of December 31, 2018. The
Company has implemented several changes to ensure that issues with
eligibility and claims submission do not affect Reliq’s revenue
collections going forward:
- Reliq will no longer rely on
customer screening for patient qualification and eligibility.
Going forward the Company will screen patients using its own
software tools and processes, which are now in place.
- The Company has revised its
standard client agreement to require payment for services rendered
within 60 days of month’s end, irrespective of whether or not the
client has received reimbursement from the payor in
question.
The Company is therefore confident that going
forward any revenue projected for onboarded patients will be
collectible.
ON BEHALF OF THE BOARD
“Dr. Lisa Crossley”
CEO and Director
ABOUT RELIQ HEALTH
Reliq Health Technologies is a healthcare
technology company that specializes in developing innovative
software solutions for the Community Care market. Reliq’s powerful
iUGO Care platform supports care coordination and community-based
healthcare. The iUGO Care platform integrates wearables, sensors,
voice technology and intuitive mobile apps and desktop user
interfaces for patients, clinicians and healthcare
administrators. 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 ER visits.
Reliq Health Technologies trades on the TSX Venture under the
symbol RHT and on the OTCQB as RQHTF.
For further information please contact:
Investor Relations at ir@reliqhealth.com
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 release.
Cautionary Statements Regarding Forward
Looking Information
Certain statements in this press release
constitute forward-looking statements, within the meaning of
applicable securities laws. All statements that are not
historical facts, including without limitation, statements
regarding future estimates, plans, programs, forecasts,
projections, objectives, assumptions, expectations or beliefs of
future performance, are "forward-looking statements".
We caution you that such "forward-looking
statements" involve known and unknown risks and uncertainties that
could cause actual and future events to differ materially from
those anticipated in such statements.
Forward-looking statements include, but are not
limited to, statements with respect to commercial operations,
including technology development, anticipated revenues, projected
size of market, and other information that is based on forecasts of
future results, estimates of amounts not yet determinable and
assumptions of management.
Reliq Health Technologies Inc. (the
"Company") does not intend and does not assume any
obligation, to update these forward-looking statements except as
required by law. These forward-looking statements involve risks and
uncertainties relating to, among other things, technology
development and marketing activities, the Company's historical
experience with technology development, uninsured risks. Actual
results may differ materially from those expressed or implied by
such forward-looking statements.
SOURCE: Reliq Health Technologies Inc.
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