Highlights taken from SOLI's 10-Q:
In April, 2019 the Company purchased certain software and related assets from KB Medical Systems, LLC primarily its industry proven, full-spectrum, robust CareClix™ software. The Company estimated the timeframe to develop software would hamper its ability to participate in the projected growth of telemedicine. The Company also estimated the cost of development would be much greater than the $1,900,000 price paid in the asset acquisition. It was very important to the Company to have software that was industry proven in a timely manner in order to reach large clients as they respond to the Medicare expansion coming in 2020. The Company was pleased to purchase the software along with other incidental assets from KB Medical Systems, LLC. The Company formed a new corporation, “CareClix, Inc”. The Company has employed the co-founder of KB Medical Systems, LLC, Dr. John Korangy. Dr. Korangy will take the role of CEO of the newly formed subsidiary. Mr Charles Scott, and Josh Flood are both using their unique skills to rapidly expand the capacity and marketing of the Company. Mr Charles Scott has taken the position of Chief Sales Officer. Using his sales experience and expertise, he has began to develop and expand a new reseller team. The Company plans to expand its areas of focus including, but not limited to US Federal Government, Direct-to-consumer, and Home healthcare. The Company has registered with the US Federal Government and began responding to RFPs. We expect to expand sales in this sector as we increase our working capital. The Company plans to launch a direct-to-consumer offering before year end. The Company is also actively involved in completing its Service Organization Control 2 non-financial reporting audit. Our current business plan will require additional working capital to expand our business operations and staff, which we anticipate will require an additional funding event by the end of the 2019 fiscal year. We also plan on continuing our merger and acquisition effort.
The Bipartisan Budget Act of 2018, signed into law by the President on February 9, 2018, introduced “the most significant changes ever made to Medicare law to use telehealth,” according to Senator Brian Schatz. "Key elements of the bill include: (1) expanding stroke telemedicine coverage; (2) improving access to telehealth-enabled home dialysis oversight; (3) enabling patients to be provided with free at-home telehealth dialysis technology without the provider violating the Civil Monetary Penalties Law; (4) allowing Medicare Advantage (MA) plans to include delivery of telehealth services in a plan’s basic benefits; and (5) giving Accountable Care Organizations (ACOs) the ability to expand the use of telehealth services." https://www.foley.com/en/insights/publications/2018/02/top-5-ways-telehealth-will-change-under-the-new-fe. We anticipate this change in the reimbursement policy will have a dramatic effect on the telemedicine industry. The Company is aggressively pursuing readiness for this incredible opportunity and the acquisition of the CareClix™ software was an initial step in that process.
In April 2019, CMS announced the 2020 Rate Announcement and Final Call Letter that gives Medicare Advantage plans flexibility to offer chronically ill patients a broader range of supplemental telehealth benefits. These changes represent an incredible new opportunity for the Company to increase its business as the industry is projected to grow. “A recent report is projecting that the global telemedicine market will expand from its current $38.3 billion valuation to $130.5 billion by 2025.” https://www.mobihealthnews.com/content/report-global-telemedicine-market-will-hit-130b-2025
Our plan of operations is as follows:
3rd Quarter 2019 Recruit and train reseller team. Expand online branding and advertising. Hire key staff. Improve sales and support infrastructure for CareClix, Inc.
4th Quarter 2019 Launch Direct-to-Customer offering. Increasing Billing Capacity. CareClix sales activity within target verticals. Replenish CHII line of credit.
1st Quarter 2020 Expand target areas for CareClix. Relaunch “Panoxol” brand. Aggressively expand marketing to Medicare partnered clients.
2nd Quarter 2020 Increase staff, Increase advertising and product sales,