TORONTO, ON / ACCESSWIRE / August 22, 2022 (Updated August 27, 2022) / Highmark Interactive Inc. (TSXV:HMRK) (the “Company” “Highmark”), a global leader in digital health technologies, will report its fiscal second quarter results for the three and six months ended June 30, 2022.
Operational Developments During Fiscal Second Quarter 2022.
Highmark Interactive Inc. continued to build on its momentum from the first quarter of its EQ Remote Monitoring (RPM) solution for orthopedic clinicians in the United States with its June 8, 2022 announcement collaborating with Urgent Orthopedic Care Inc. (UOC). UOC is a multi-clinic orthopedic organization which manages over 10,000 patients annually. Highmark’s EQ RPM platform is ideal for pre & post-surgical monitoring, in addition to between clinician visits. Highmark’s EQ Balance is FDA-cleared software as a Medical Device (SAMD). Remote physiologic monitoring (RPM) is a recently added reimbursement code by Medicare in the United States and now with many commercial issuers. RPM provides the clinician with a tool for more precise care and better patient outcomes. Highmark is pleased to announce the UOC partnership is now live as of August 2022.
As noted in Highmark’s February 3, 2022 press release, in adopting Highmark’s EQ Remote Monitoring platform, a typical surgeon can generate an additional USD$200,000 in revenue annually based on billing approximately $270 per patient with at least 735 patients per year, all while identifying and addressing concerns earlier that can minimize or prevent significantly more expensive downstream costs.
Highmark earns a minimum of two months of monitoring per patient generating SaaS revenue of USD$60/patient/year. Highmark’s model for orthopedic practices is a hybrid of recurring SaaS revenue with additional per patient use and implementation fees. During the initial USOA roll-out to 15 surgeons, Highmark anticipates generating an annual minimum of USD$50,000 per surgeon. Subsequent expansion of the roll-out to USOA’s growing network of more than 100 surgeons will generate incremental set-up and recurring fees. The potential addressable market for the EQ Remote Monitoring Solution includes approximately 30,000 orthopedic surgeons in the United States alone.
Highmark was also very excited to have launched Phase 1 of the THINK AHEAD Pathways Program with the Emergency Room (“ER”) at a Greater Toronto Area Hospital on June 14, 2022 with the program being deployed and live as of July 2022. In the first thirty days, we have received referrals for approximately 1.6 patients per day versus projections of 2 referrals per day. We believe through more engagement and awareness of the program we will be inline with our forecast of patient volumes.
This is the first of 13 additional ER’s in the GTA expected before the end of 2023. The program offers physician follow-up and remote monitoring of neurological function to patients over the age of 12 and who have suffered a head injury. The physician can immediately review their current symptoms, balance and cognitive status using the Highmark telehealth portal, creating a more efficient clinical session without compromising quality.
Phase 1 deployments are anticipated to generate annualized recurring revenue of $3 million by fall of 2022. Phase 1 is anticipated to be an equal mix of SaaS revenue and clinical services. By the end of Q2 2023, the rollout schedule targets a total of 10 ER’s generating approximately $10 million in annualized revenue, 75% consisting of SaaS revenue.
Financial Highlights as at and for the Three and Six Months Ended June 30, 2022
*EBITDA is calculated as loss before income taxes, non-cash interest expense, accretion expense, share-based compensation, and depreciation and amortization.
CEO Sanjeev Sharma notes, “The organization’s hyper focus on its core technology streams is translating into accelerated on-boarding of Emergency Rooms. We believe this hyper-focused approach will support the SAAS revenue and EBITDA targets we’ve set over the next 12 months.”
Insider Financing in August 2022
On August 20th, the Company issued a CDN $1Million dollar 8% convertible note, paid semi-annually for a term of two years with a conversion price based on a future equity issuance. The funds will be used for the purposes of working capital to expedite sales and marketing initiatives for the THINK AHEAD pathways program and the continued expansion of HMRK’s FDA approved EQ software into the U.S.
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 and balance. Together. The technology is used in more than 350 health organizations 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.
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Learn more: https://www.highmark.tech/
For further information:
Highmark Interactive Inc.
Sanjeev Sharma, President & CEO. sanjeev@highmark.tech or 1-855-969-5079
Investor Relations
ir@highmark.tech