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Bought some shares of Reliq Health Technologies yesterday and today. This is a Canadian company mostly operating in Texas.

Reliq’s iUGO Care platform provides remote patient monitoring, telemedicine and care coordination solutions for hospitals, home care agencies and family practices/Accountable Care Organizations (ACOs) providing care for patients in their homes. iUGO Care allows caregivers to monitor patients’ vital signs, activity and medication adherence in the home. Clinicians can receive automated alerts if a patient’s health starts to deteriorate allowing them to intervene early, before an ER visit or hospital admission is required.

Approximately 66% of all Medicare and Medicaid patients have two or more chronic conditions such as diabetes, congestive heart failure, hypertension, COPD, etc. In 2016 over 57 Million Americans were covered by Medicare or Medicaid, meaning that over 38 Million Americans qualified for virtual care in the home under new CMS billing code 99490 for Chronic Care Management1. The value of the CCM market for patients covered by Medicare/Medicaid was therefore valued at over $20 Billion USD in 2016. Currently at least one in 4 Americans have two or more chronic diseases2, or over 81 Million adults. As the population grows and as private insurers (HMOs) also begin to provide coverage for CCM programs, the total market value for in-home virtual care is expected to exceed $50 Billion USD annually by 2021.

So the iUGO system is a combination of devices placed in the patient's home to allow the patient to be monitored. The wifi devices are used to monitor and remind patients of their medication, monitor things like blood pressure and allow the patient to ask the devices questions.

The purpose of iUGO is to improve patient outcomes at less cost. Reliq charges Medicare about $50/month for each patient. Doesn't sound like much but the company claims 80% margins and the potential population of patients is gigantic. The company was shooting for around 2,000 new patients a month but has recently run into a couple of obstacles. Patients needed more handholding to get their systems installed and to be able to use the system correctly. Also their main client couldn't get the automated electronic blood pressure monitors needed to gain important readings from the patients.

Reliq had just raised cash so ordered a large number(27,500) of the devices and will sell them to their clients at a small profit. But the most important thing is that new signups will resume their previous pace. In addition, today they announced a deal with a bigger organization called CareOne to help with new clients. CareOne is bigger and has staff in much of the Southern US. They will help with patients who need more help using the iUGO system. Medicare will be billed for the extra help and Reliq will get $25/ installation as well.

These two recent events allowed Reliq to reaffirm their original guidance for 12/18. They expect to have 30,000 patients enrolled by 1/19 and continue growing at 2500-5000 new patients a month.

Their Q3 showed a large loss, mostly due to a large non cash charge for stock options granted officers totaling C$3.5million. But cashflow is close to breakeven. Their latest presentation forecasts net profits in early 2019.

Here is the latest presentation:

http://reliqhealth.com/investors/corporate-presentation/

142million shares outstanding fully diluted

Market cap about C$200million

Total revs/qtr 1.3 million with only two months included in latest report. Said they have 12,000 patients enrolled so Q4 ending 6/30/18 should have revs in the 1.8million range @ $50/patient.