Maxim Group’s discussion with RHT.V’s Interim CEO, Chris Shields

RHT.V’s Interim CEO, Chris Shields, appeared this afternoon (January 24, 2024) at M-Vest’s (a division of investment banking firm Maxim Group LLC) 2024 Healthcare IT Virtual Conference. Here are some of the highlights from his comments that will be of particular interest to investors who are very familiar with the story, and want to know about the company’s current situation:

• “Our number one priority is getting our financials filed.”
• “Our number two and three priorities are growing these large health care companies in the U.S. that we signed last year … they have millions of patients that can be added to the platform … to keep them happy, keep growing the business we have with them while we grow our other existing business.”
• “We consistently get feedback from all of our clients that they’ve done searches, looked at a number of companies in this space, and consistently they say our platform is by far the best out there.”
• “Our technology is the best out there where you can do the most from a – I’ll call it a triage perspective.”
• “And so between making it simple for the patient, but having a strong in-the-background platform that can generate lots of data, identify patients at risk, and provide the assessment on whether different treatments may be working for those patients. That’s really the number one thing that differentiates us for most companies out there.”
• “I’d say the second thing that really differentiates us is the fact that we’ve been doing this for so long. We have lots of data to show our customers on the efficacy of these programs, whether it’s improvement in health outcomes or whether it’s keeping patients out of the hospital or being readmitted to a skilled nursing facility.”
• “And then the third thing I would say is really the fact that we’ve put together a turnkey program. When we first started doing a lot of these activities we found all kinds of different bottlenecks and points at which our clients would stall out. And so, over time, we’ve removed all of those.”
• “We feel that, over the long term, big data will be as big a part of our revenue generation as the rest of the business.”

Allen Klee, Research Analyst at Maxim Group, posed two questions received from the viewing audience: (1) So how are you spending the funds from your recent raise? (2) Is the company cashflow positive, and will further financing or private placements be required?

• (1) “So as we put in the filing documents, the majority of the funds from the private placement are put towards growth with our new clients. I could go through the list, but a lot of it is in hiring new staff and travel, since we’re now starting with these new clients to be operating in states that we didn’t have physical footprints. So we have implementation teams that now go to those states to help onboard the large skilled nursing facility that is in eight states. Most of those states are states we haven’t previously operated in. So we have to bring our staff in early on and then backfill by hiring additional staff physically in those states. And there’s a lag between bringing people on, getting them trained, onboarding the clients, and then when the clients start to get reimbursed for those patients, and then pay us.”
• (2) “It’s hard to say whether we need a raise or not. … We could sign an additional several large U.S. health plans or Medicare Advantage plans and require more funds for growth. So it’ll depend on the growth rate and how quickly between the start of onboarding of these new clients and them getting the patients on, getting their reimbursement, and us billing for services. That lag time will determine if we need additional funds. … No, we’re not [cashflow positive] because we just needed to raise money. If we were cashflow positive, we wouldn’t have had to raise the additional capital.”

In conclusion, Mr. Shields addressed the company’s current status regarding filing of their financials and the Cease Trade Order:

• “So we’re still working towards that. We expect to have it resolved in the relative short term. I can’t give any specific timing here, but we will be having some additional press releases coming out to give more clarity on that.”