As you all know, I started a position in Reliq $RQHTF at the beginning of March at @.69 cents. I plan to add to that position, and I am bothered that I did not have a limit set @ .50 cents. In the investment plan I sent out to the members, I identified .50 cents as a potential support level, which I felt would be the ideal price point for adding and continuing to build my position. The stock recently pulled to .50 cents, but by the end of that trading day, it was back up over .60 cents, currently priced at .67 cents. I should have had my limit buy GTC, but with everything going on and my trying to get caught up after my battle with Covid, my intent fell through the cracks.
Regardless, after having an opportunity to speak with CEO Dr. Lisa Crossley this week to get an update on recent developments at Reliq, I am planning to add to my position in the upcoming week. I would love to get filled closer to .50 cents. I will place a limit buy GTC @ .50 cents, and I will be adding more shares in the active market in the .60-.65 cent range.
Reliq has performed admirably over the last several quarters with continued revenue growth. The knock-on Reliq Health is its high level of receivables and days outstanding. Dr. Crossley explained that the company has transitioned from hardware and SAAS software being sold independently from one another. To a model where the hardware and software are bundled together for their customers under a higher margin profile. At the same time, they are providing attractive terms for their new and existing clients that have the hardware and are now adding the IUGO Care platform.
While some may perceive receivables as high, the margins are pretty healthy on both the hardware (which is typically low margin) and the software and, in my view, makes up for carrying a heavier load on the receivables end.
Reliq Health's "IUGO Care" platform is a win for the healthcare system, and it benefits everyone. Patients, clinicians, and payors. Providing clinicians a comprehensive turnkey solution to seamlessly roll out a new billable virtual care service that makes getting prescription refills or doctor visits much more efficient, less time-consuming, and less costly for the patient.
Covid helped fuel the need and the growth of telemedicine and patient care. Reliq Technologies is generating strong gross margins of 75 % and EBITDA margins of 45%. At the moment, Reliq is traded on the pink sheets and does have plans to up-list to the NASDAQ when it makes sense to do so. Before the NASDAQ up-list, I would not be surprised if Reliq moved from the pinks to the OTCQX, which is more aligned with the ultimate goal of a NASDAQ uplisting and would potentially give Reliq an easier transition to the NASDAQ.
OTCQX
"The OTCQX Market is the top tier, with the most stringent entry requirements. According to OTC Markets, companies trading on OTCQX must "meet high financial standards, follow best practice corporate governance, demonstrate compliance with U.S. securities laws, be current in their disclosure, and have a professional third-party sponsor introduction."
More specifically, these companies must meet a reporting standard in terms of how they report financial information. They must also have a board of directors with at least two independent directors, an audit committee that conducts annual financial audits, have new annual shareholders meetings and release annual financial reports 15 days prior to each meeting. "
Source Yahoo Finance wrote and provided by Benzinga
OTCQX Vs OTCQB Vs Pink: Understanding OTC Markets' Different Tiers (yahoo.com)
While Reliq is not yet profitable, revenues from July 1st-December 31st, 2021, were $3,748,292. Compared to $843,449. for January 1st-June 30th, 2021. Which represents an increase of 344 %
Dr. Crossley and her team are executing the strategy to achieve the executive team's vision for Reliq ultimately. There are no signs that the revenue growth above will be slowing down. Reliq is expanding its customer base with new product applications and expanding into new segments of the health care industry with impressive new partnerships. As an example, Reliq recently signed a contract with Cognizant. Some people may be wondering, who is that? Not to discredit Cognizant, but it isn't exactly a household name.
Intuition engineered—human insight, superhuman speed | Cognizant
As you can see from the slide above, Cognizant is a massive player in the healthcare industry. It is a bit unusual to have a pink sheet listed company sign a partnership agreement with a multi-billion dollar Fortune 500 company would be an understatement. I think the current market climate. Specifically, the micro/small-cap space has played a role in the under-appreciation & the significance of what this partnership means for Reliq moving forward. Not to mention the intangible benefits Reliq is likely to recognize over time. Little things like credibility and ** validation of the product and service** that Reliq provides.
Let's not stop there. How about the signed contract with ** Data Soft Logic**?
Home Health Software | Hospice Software | Data Soft Logic
"Data Soft Logic was founded and is managed by a team of people that have experience in various levels of post-acute care. Agency owners, billers, coders, and nurses all work together to make sure our software solutions meet the needs of agencies of all sizes. We know what its like to struggle and grow as a small agency, and we know what it takes to maximize the efficiency of a large agency. We've taken our combined experience and commitment to bettering patient care and delivered intelligent software solutions to healthcare providers all over the country for over 14 years."
Watch this video from CMS and learn about the telehealth services' benefit
"Medicare Coverage and Payment for Virtual Services"
Source Data Soft Logic website
The contract with Data Soft Logic is anticipated and publicly stated that it will add** "50K NEW patients** to Reliq's platform and** $36 million*in revenue **EVERY YEAR* from 2023 on. "
Another catalyst for Reliq is the five new billing codes that* "medicare introduced in January 2022 for remote monitioring of musculoskeletal and respiratory conditions, which expands Reliq's target patient population by over 20 million newly edgible patients to more than 57 million patients." *
Source Reliq's March 2nd 2022 Corporate update
I love the Reliq story because of the transparency Dr. Crossley provides. If you are an experienced investor, you will likely agree with me that it almost always seems to take longer for things to develop than what we have planned in our minds. Wallstreet is often slow to recognize the true potential of a company like Reliq because it isn't even on most investment funds' radar because it is a pink sheet listed stock. In the latest update, Dr. Crossley posted a slide titled "Key Metric Definitions," which I have inserted below.
Do you think Reliq would need that slide for an analyst at an institutional fund? I am reasonably sure that slide is intended for retail investors so that they limit their over-exuberance on expectations.
Dr. Crossley anticipates that Reliq's rapid growth will continue and "accelerate significantly" in the remainder of 2022.
Source Reliq's March 2nd 2022 Corporate update
Since the March presentation, Reliq has announced a significant new market segment where Reliq will be providing its unique services.
"We are very excited to be moving into the clinical trials space," said Dr. Lisa Crossley, CEO at Reliq Health Technologies, Inc. "The oncology clinical trial market alone is valued at over $10 billion USD and is growing at over 5% per year. Using our iUGO Care platform and Patient Engagement services, Contract Research Organizations (CROs) can monitor trial-specific metrics such as medication adherence, side effects/safety and efficacy, and can also monitor existing comorbidities that must be tightly controlled during clinical trials such as hypertension, diabetes and other chronic conditions. We are very pleased to be working with our new client, a highly respected and experienced CRO that in the last year alone conducted over 1,000 clinical trials involving over 200,000 physicians and more than 600 clinical sites. We will be utilizing a combination of our proprietary solutions for the clinical trials, including iUGO Care, iUGO Home, iUGO Voice, and the MiUGO patient portal. This contract is expected to generate recurring revenue of approximately $40 per patient per month. The company expects to onboard over 3,000 clinical trials patients in 2022 through this contract."
I could go into more detail about the product and services that Reliq provides. However, that is why I interviewed Dr. Crossley and sent it out to all the AWT members in February. If you have not done so, I highly recommend you watch the interview to learn more about Dr. Crossley and Reliq Health Technologies and form your own opinion on whether this company has the makings of yet another "Hidden Gem!" I will soon be doing another exclusive interview update with Dr. Crossley for the AWT members.
Since writing this for the Pro members of AWT, a new development occurred, forcing me to add to this piece and share it publicly for the benefit of other Reliq shareholders that may be fearful after the "hit piece" was released by a known short seller.
"Reliq Health Technologies – Masquerading As a Healthcare Technology Company But Is Really Based On Stock Promotion and Lies"
There are two jobs that I often think about and wonder why anyone would want to take them. One is the President of the United States. The other is a CEO of a publicly-traded company.
Being President of the United States is a tough job, no matter who steps into the office or their intent. A good portion of society will hate and despise everything that they stand for, and the President has no control over Washington or the politicians and their agenda.
Anyone that has ever started their own business knows how difficult it is to build a successful business. When you run a publicly-traded company, you are accountable to the shareholders, and often the shareholders are not realistic with their expectations. We live in a society of instant gratification. It takes time to build a profitable and successful company. Many stakeholders get impatient and fail to recognize specific challenges that a company may run into that lengthens the path to success—little things like Covid & supply chain issues that no one could have predicted. Leading a business is difficult enough. The whole reason companies go public is typically to help fund the company's growth until they become self-sustaining and, hopefully at some point, profitable! That is how the stakeholders ultimately get rewarded for supporting the company by becoming part-owners and helping it during its unprofitable growth period.
CEOs are expected to share the company's vision, build a team to help execute that vision, and lead the company to success. That is tough enough to do in private, but it is ten times more challenging when you are a public company. You have all kinds of regulations, government watchdogs, and rules to follow. CEOs of publicly traded companies also have to answer to the shareholders, who are not always savvy and astute investors.
Throw on top of that the pariah short-sellers looking for an opportunity to scare the daylights out of those novice investors who do not have any conviction in the stocks they own. These characters use sensational headlines like the one above to instill fear and panic in shareholders who have not done any due diligence to make them feel more comfortable owning shares in a company that an immoral fearmonger puts a hit piece out on.
When shareholders see stuff like this, you must ask yourself this question. What is the purpose of the article? What is the agenda of the person that wrote it?
I meet with every CEO and often other executive team members of every company I invest with. I believe that it is essential to understand a company's vision, the size of the addressable market, the product or service they intend to provide, the health of the cap structure, and most importantly, to look the person in the eye that is leading the charge.
Please understand some good investigators put out quality research to prove that a company is potentially a fraud or that something is not right about a company. There is a place for short-sellers, and quality research questions the viability of a company's claims. It is always good to look at both sides of a story to give you a balanced approach to viewing a potential investment before you jump in. I am not advocating eliminating short-sellers or quality investigations into publicly traded companies.
I despise the articles that try to destroy a company's reputation and call into question the integrity of the CEO as a person. These short-sellers will take something like previously stated milestones by the CEO that are not met and try to infer that that CEO is a liar and not to be trusted. Anyone that has run a business knows that forecasting is not a precise science. Some things come up in business and in life that creates setbacks. (Covid, supply chain issues, contracts get delayed, projects get pushed back because of circumstances beyond anyone's control) Deadlines get missed all the time in business. Not because the CEO is a liar, but because that is what happens when running a business.
I will not give the firm the privilege of naming them in this piece. I am confident you will be able to find that on your own. I will point out a few things I think are worth highlighting.
The article questions the relationship that Reliq has with Cognizant, suggesting that because of the conversation that this short-seller had with someone who answered the phone over at Cognizant, Reliq is a customer and that the opportunity for substantial future revenue opportunities do not exist for Reliq. Please look at the following document that I pulled off the Cognizant website of their last quarter's earnings call.
Source Cognizant Website Earnings call
Below you will find Reliq's response to the false allegations and the action that Reilq has pursued regarding the article.
Source Crwe website
I would also like to bring to your attention that Dr. Lisa Crossley has not sold one share of her Reliq stock holdings. Dr. Crossley also recently exercised over two hundred thousand dollars worth of stock options with a strike price of 1.12 a share.
I could go on to refute every misrepresentation of the hit piece article, but I would prefer to get clarity from Dr. Crossley. That does not seem to be the type of action you would expect from someone running a so-called "pump and dump."
You can watch the interview I did with Dr. Crossley in February and your due diligence to help you decide whether Reliq Health Technologies is what this misguided short seller says it is.
I will be doing a follow-up interview as soon as possible. Stay tuned for the interview.
Beyond AWT and associated sites the only other approved distributor of this article is Streetwise Reports
