Highmark Interactive Inc. Reports Fiscal First Quarter 2022 Financial Results
ACCESSWIRE
5 min read
TORONTO, ON / ACCESSWIRE / May 27, 2022 / Highmark Interactive Inc. (TSXV:HMRK) ("Highmark"), a global leader in digital health technologies, today reported its fiscal quarter end results for the three months ended March 31, 2022. All results are reported under International Financial Reporting Standards ("IFRS") and in Canadian dollars, unless otherwise specified.
Highmark Interactive Inc.
Key Highlights and Developments During Fiscal First Quarter 2022
On February 3, 2022 Highmark announced the roll-out of its EQ Remote Monitoring solution to US Orthopedic Alliance ("USOA"), an organization committed to delivering robust health information technologies and practice management resources to orthopedic-specific group practices, ambulatory surgery centers and specialty surgery hospitals. The EQ Remote Monitoring platform will enable the physician to monitor a patient before and after surgery and between clinical visits to inform and personalize the patient's treatment plan. Remote physiologic monitoring (RPM) is a recently added reimbursement code by Medicare in the United States. It enables physicians to add remote monitoring to their services to improve patient outcomes. The Highmark EQ Remote Monitoring platform is a mobile application downloaded to a patient's smart device. Highmark has continued to build on its strategic partnership with USOA. The evolution of the relationship has led to a robust sales pipeline. In addition, Highmark's direct to clinician (i.e. orthopedic surgical centers and medical offices) activities has added to the RPM pipeline, with the expectation being that Highmark will begin deployment before end of the second quarter of 2022.
Subsequent Developments
On May 19, 2022 Highmark announced further traction in the Canadian market for its EQ and BrainFx assessment platform through their adoption by sport and neurorehabilitation clinics. In addition to the Company expanding its footprint in the Ottawa region amateur sports leagues, Highmark was added to the preferred provider networks of several disability management firms including Acclaim Ability Management, a national provider of disability management services, and Organizational Solutions Inc.. In addition, Highmark has continued to leverage the Highmark assessment suite to differentiate its services in the neurorehabilitation market and this year to date had received more than CAD$260,000 in new clinical services referrals that will be delivered over the course of 2022. This technology-enabled model of care facilitates not only new growth within Highmark itself but serves as the model for adoption by other neurorehabilitation services.
By fusing proprietary digital clinical decision support technology with virtual and traditional models of healthcare service, Highmark is committed to delivering better outcomes for people struggling with brain health and mental health.
Dr. Sanjeev Sharma, CEO of Highmark, noted, "We're pleased that integration of the three acquisitions completed in 2021 has gone as well as it has, as the Company is beginning to see wins collaboratively in the marketplace. We expect operational synergies to enable ongoing strong organic growth, both in Canada and the broader US market." Furthermore, said Sharma, "While operating within a difficult macroeconomic climate is challenging, the Company has never had as robust a sales pipeline as it does today. The primary driver of that is Highmark's software has been deemed reimbursable as per regulations of the largest purchaser of health care on the planet; the United States Centers for Medicare and Medicaid Services (CMS). Highmark's FDA cleared software is a net income generator for clinicians, with its cost being covered for patients. As such, the company is excited about being able to begin executing against its robust RPM pipeline, with deployment targeted for the second quarter of 2022."
Financial Highlights
The financial results for the three months ended March 31, 2022 include the results of BrainFx Inc. following the May 17, 2021 acquisition and the results of Complex Injury Rehab following the November 9, 2021 acquisition.
For the first fiscal quarter ended March 31, 2022, revenue was $669,685, a 446% increase over 2021 first quarter revenue of $122,596. The revenue increase included the revenue from Complex Injury Rehab and BrainFx. First quarter operating expenses increased from $867,708 to $1,446,179 for the three months ended March 31, 2022 compared to the same period last year. In comparison to the first quarter of 2021, the company has increased headcount by just over 328%, and is continuing to grow to meet expected sales demand over the balance of the year. Offsetting the inclusion of BrainFx and of Complex Injury Rehab expenses during the first quarter of 2022, the Company incurred lower legal and accounting expenses associated with the costs of the Qualifying Transaction with Stormcrow and the acquisitions of BrainFx, Complex Injury and Highmark Health. Other expenses increased from $13,542 to $197,582 for the three months ended March 31, 2022 and March 31, 2021 respectively. The increase is attributable to interest costs and the deferred finance costs associated with the bridge loan and convertible debt added in the second quarter of 2021. Comprehensive loss for the three months ended March 31, 2022 was $1,476,350 and $842,538 for the three months ended March 31, 2021.
Selected Consolidated Financial Information
The following tables set forth selected financial information derived from the Company's unaudited condensed interim financial statements for the three months ended March 31, 2022 and March 31, 2021. The following information should be read in conjunction with the financial statements and management discussion and analysis, which are available under the Company's SEDAR profile at www.sedar.com.
Quarterly Financial Information
Highmark Interactive Inc., Friday, May 27, 2022, Press release picture
About Highmark Interactive
Highmark Interactive was created to change the paradigm of testing and management for brain and mental health. Highmark's approach is focused on providing real-time data to health providers to support proactive, preventative interventions and targeted care planning to improve health outcomes.
In addition to a growing network of virtual, in-person and hybrid clinics, Highmark Interactive offers the world's first gamified, FDA cleared patient-led assessments as well as digital clinician-led assessments of neurofunction. Together, the technology is used in more than 300 multidisciplinary rehabilitation clinics globally.
By unlocking insights, Highmark's platform enables precision medicine and creates a more contemporary model for delivering better outcomes in medical, mental health and rehabilitation services.
For further information: Highmark Interactive Inc. Investor Relations ir@highmark.tech
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