We've been waiting for this for a while so this is pretty exciting. Today EWLL filed an 8K with the SEC with a copy of their first big contract.
You can read the entire contract here.
As you know they've really been focusing on Workman's Comp companies because of the millions of workers they cover. Outside of government there are probably more whale-sized clients in Workman's Comp than any other industry.
The company they announced today is a good example. The name of the company is First Managed Care Option (First MCO) and they manage some BIG clients.
One of their clients for example is Walmart. It's not clear if it's the whole company, or just a region but Walmart is the largest employer in the US.
And what's exciting is that First MCO has contracted for three completely separate services from EWLL--which means three separate revenue streams.
1) First MCO is providing it to all their employees. It's a great benefit and it will make believers out of their own people.
2) EWLL will provide monitoring for any of their covered individuals on a workmans comp claim to verify the patient is actually doing their exercises. This is a HUGE problem is the workmans comp world and why patients are out of work for so long. There are mandates they have to be trying to get better to keep getting paid while they are off work, but there is currently no way to verify whether the patient is in compliance.
Now there is--and everyone in that industry will demand this service. The beauty of it is the margins--there is no physical therapist required--it's all done automatically with pictures taken every few seconds. It's $100 per patient and almost all that money goes to the bottom line.
3) EWLL will assess EVERY patient that needs physical therapy (keep in mind that's over HALF of all workman's comp claims) and then recommend either an in-clinic session or remote sessions. EWLL gets paid for the assessment and they get paid for the remote sessions.
The great thing about this agreement is unlike the $49 or $59 per session we've seen proposed in the past--this is 75% of standard in-clinic costs for the assessment--and 70% of standard in-clinic rates for a treatment. With the lowest in-clinic rate currently around $100 that's at least $70 coming to EWLL for each session--and likely more.
And in the Workman's Comp space literally every American worker HAS to be covered by law.
So this is just the first contract of many--and even though First MCO is big, it's a baby compared to what's coming.
EWLL has 5 contracts out besides this one just waiting to get signed and sent back. The companies have already given a tentative 'yes' and they are in the implementation and logistics stage. The next one that is likely to sign is 24 times bigger in annual revenue than this first company.
Those five contracts could all come in within the next 30 days and the revenue for this first contract is starting in just a month or so--in November. That means revenues by EWLL's fourth quarter earnings release.
So far EWLL has presented to 101 Workman's Comp companies and the companies are extremely interested. Just the patient monitoring will save them millions from patients that are getting paid to stay home with no intention of ever getting better. The Workman's Comp companies HAVE to have this service--and it's a nice lead-in to providing remote physical therapy as well.
Based on the pipeline and the interest we're already seeing we could see 5 new contracts over the next 30 days and as many as 25 by the end of the year.
The long walk in the desert is over--revenue is coming down the pipe--and that changes everything.
As you've seen the convertible sellers are devasting the stock--they are the only ones selling. The sooner we get rid of these pariahs the better.
With these new contracts the stock will start to rise--and when it does Doug--the Chairman of the Board--will access the 1.5 million Trident funds already committed and take the convertible sellers out for good.
For now EWLL doesn't want to make any big public announcements about these contracts as they don't want to invite competition until they can really get rooted into the sector--but an 8K is public information and investors will start to see what's going on--especially after the 2nd, 3rd and 4th contracts are filed.
Today is a big day, but the next 30 days could completely turn this company around.
This is going to be a completely different company by the end of the year so it wouldn't be surprising to see an uplisting in the first half of next year.
