Stockwatch

Carespan Health Inc
Symbol	CSPN
Shares Issued	47,282,297
Close 2023-08-29	C$ 0.10
Market Cap	C$ 4,728,230
Recent Sedar Documents

Carespan Health's June 30 cash at $86,925 (U.S.)

2023-08-29 16:39 ET - News Release

Subject: CareSpan Health, Inc. Re: News for Dissemination Word Document File: '\\swfile\EmailIn\20230829 131045 Attachment CareSpan - News Release - June Interim Statements.docx' CARESPAN HEALTH, INC. ISSUES SECOND QUARTER and First Six Months ended June 30, 2023 FINANCIAL STATEMENTS VANCOUVER, BC, August 29, 2023 /CNW/ - CareSpan Health, Inc. (TSXV: CSPN) (the "Company" or "CareSpan"), a company addressing the shortage in primary care and mental health through its provider networks, American-APN and American-Med Psych, and its leading "Clinic-in-the-Cloud" integrated digital care platform, is pleased to announce its consolidated results for the quarter ended June 30, 2023. All amounts are expressed in U.S. dollars. The Company's profitability improved during the quarter compared to the same period last year despite the decline in revenue due to the reduction of Covid-related cases and typical seasonality. Operating (loss) in Q2 2023 improved by 22% from Q2 2022. This was achieved through a steady shift to higher-margin services and continued cost containment and productivity measurestaken by the Company starting in 2022, reducing operating expenses by $1,124,120, or 48%, from Q2 2022 to Q2 2023. The decline in patient encounters and revenue between the first six months of 2023 compared to the first six months of June 30, 2022 is due singularly to the significant drop in COVID-19- related encounters and associated reimbursements. The surge in COVID-19/Omicron-related cases in Q4 2021 and Q1 2022, and its subsequent decline is consistent with COVID-19 case patterns experienced across the United States. The decline in revenue from Q1 2023 to Q2 2023 is related to the typical seasonality of clinical encounters. While COVID 19-related encounters declined, patient visits related to medical assessments for U.S. military veterans increased by over 70% for the same period, from 670 in the first six months of 2022 compared to over 1,150 in the first six months of 2023. According to Rembert de Villa, Chairman and CEO, "We continue to scale services that drive improved productivity and margins, such as conducting medical assessments for U.S. military veterans. As we reported in our 2022 annual results, we are focused on accelerating our path to get to cash flow positive by executing on the current backlog of higher-margin contracts, developing new contracts for our members, and right-sizing operations and SG&A. In Q2 2023, we continued to be very intentional in our in our technology spend, enhancing our 'Clinic-in-the-Cloud' platform through high-impact functions and features that improve revenue capture and profitability." Leslie Markow, Chief Financial Officer, explains, "Highlights of our financial results are as follows: Second Quarter 2023 Financial Highlights The number of billed patient encounters decreased to 6,014 in Q2 2023 from 9,256 in Q2 2022 due to the decrease in visits relating to COVID-19 cases, as mentioned above. Operating expenses in Q2 2022 were $2,244,739 compared to $1,220,619 in Q2 2023, an improvement of $1,124,120 or 48%. This was primarily the result of a reduction in practice fees, as well as cost reduction measures to reduce salary costs, contractor costs, information technology costs, while improving productivity. The resulting operating loss for Q2 2023 was ($478,360) compared to $(1,234,126) in Q2 2022, an improvement of 61%. Total Comprehensive (Loss) for the Company was ($293,753) in Q2 2023 compared to ($1,218,334) in Q12 2022. (Loss) per share improved from ($0.04) in Q2 2022 1 to ($0.01) in Q2 2023. 2022. The weighted average number of common shares outstanding was 30,725,486 at December 31, 2022, and 46,823,795 at June 30, 2023. Adjusted EBITDA improved to ($241,717) in Q1 2023 compared to ($1,139,931) in Q2 2022. The Company's cash balance was $86,925 at June 30, 2023 compared to $393,746 as of December 31, 2022. Trade and accounts receivable declined from $985,473 at December 31, 2022 compared to $483,715 due to cash receipts in the first half of 2023 and lower encounters in the first six months of 2023, as described above. Accounts payable, accrued liabilities and amounts due to related parties increased from $2,264,246 at December 31, 2022 to $2,336,864 at June 30, 2023. The increase is due to payments to vendors offset by loans provided of $490,000 received in the first six months ended June 30, 2023. Shareholders' (deficiency) increased from ($1,766,224) on June 30, 2023 compared to ($885,025) on December 31, 2023., Events Subsequent to June 30, 2023 The Company signed a Software-as-a-Service (SaaS)agreement with Golden Care Solutions of Minnesota for the use of the CareSpan platform for Golden Care's operations. Golden Care Solutions is a nationwide network of medical service companies and medical practices that provides turnkey solutions for revenue enhancement, productivity enhancement, and improved outcomes. A separate press release will be issued shortly announcing the recent signing of this agreement. The Company is in the process of finalizing the agreement with ChopraX, announced in Q2 2023, as well as mobilizing resources to launch Chopra Whole Person Care, powered by CareSpan, in Q3/Q4 of this year. After June 30, 2023, the Company received loans from the Chairman and CEO and a third party of $100,000. These loans are due in one year, bearing an interest rate of 12%. The loan holders have the option to be converted into a future qualified equity financing in excess of CAD $1 million. The Company's loan from a former director of $165,000 plus interest, previously due March 31, 2023, was extended to August 31, 2023. Outlook CareSpan is focused on executing its growth strategy in 2023 and beyond and achieving positive cash flow position, mainly through the following: Finalization of the Definitive Agreement and execution of Chopra Whole Person Care, a unique integrative medicine offering to market in the U.S. and globally, leveraging the Chopra brand, clinical methodology and protocols, and provider relationships, as well as CareSpan's Clinic-in-the-Cloud platform and operations. Focus on delivering on the backlog of signed contracts for U.S. military veterans' assessments, as well as medical supervision of remote patient monitoring for patients of weight loss programs. Narrowed focus on recruiting clinicians (mainly Nurse Practitioners) specifically in geographies matching these contracts to accelerate growth post onboarding and improve revenue and margins for both CareSpan and its clinician members. Maintain productivity and continued reduced cost structure to improve cash flow enroute to being cash flow positive. The Company intends to continue strict control of expenses by focusing mainly on expense items that are directly tied to revenue capture. About CareSpan Health, Inc. CareSpan is a healthcare technology and services company incorporated in British Columbia. CareSpan's proprietary "Clinic-in-the Cloud" is a clinical workflow driven platform designed by doctors that integrates remote patient monitoring, diagnostic tools, the patient's electronic health record, care collaboration capabilities, patient engagement and e-prescribing and lab ordering. CareSpan's platform seamlessly supports both in-person and virtual/telehealth care. CareSpan is using this platform combined with essential business services to build provider networks across the U.S. that deliver primary and chronic care, and urgent care as well as behavioral health care. About American-APN and American-MedPsych American-APN is one of the first professional "group practices without walls" that brings highly qualified Nurse Practitioners to those in need of health care under a collaborative care system that uses digital technologies. American-APN was created for and by advanced practice nurses and NPs (Nurse Practitioners). It is operated exclusively by its nurse practitioner membership with its own executive leadership and board of directors. American-MedPsych brings together behavioral health specialists in their own "practice without walls," allowing them to collaborate with American-APN and other primary care providers to address the growing behavioral health shortage in the United States. American-MedPsych is a growing national group practice of behavioral specialists delivering care using the CareSpan Clinic and supported by CareSpan Integrated Network's management services organization. American-MedPsych specialists uses sophisticated digital care tools in collaboration with primary care counterparts to manage reinforcing conditions such as depression and diabetes, substance abuse and pain, stress, and job performance, to alleviate suffering and improve outcomes. Members of both networks benefit from the suite of technology and business services and solutions offered by CareSpan Integrated Networks. ON BEHALF OF THE BOARD OF DIRECTORS: Rembert de Villa Chairman and Chief Executive Officer For further information please visit: http://www.carespanhealth.com, http://www.americanapn.com and http://www.americanmedpsych.com Use of Non-IFRS Measures This press release refers to certain non-IFRS (International Financial Reporting Standards) measures including, but not limited to Adjusted EBITDA (as defined herein). These measures do not have a standardized meaning prescribed by IFRS and therefore they may not be comparable to similarly titled measures presented by other companies and should not be construed as an alternative to other financial measures determined in accordance with IFRS. Rather, these non-IFRS measures are provided as additional information to complement IFRS measures by providing a further understanding of operations from management's perspective. Accordingly, non-IFRS measures should not be considered in isolation nor as a substitute for analysis of financial information reported under IFRS. Management believes that these non-IFRS measures provide useful information to investors in measuring the financial performance of Company for the reasons outlined below. Management uses Adjusted earnings before interest, income taxes, depreciation, and amortization ( "Adjusted EBITDA" ) as a key financial metric to evaluate Company's operating performance as a complement to results provided in accordance with IFRS. The term "Adjusted EBITDA", as defined by management, refers to net income (loss) before adjusting earnings for finance costs, income taxes, stock-based compensation, amortization, non-recurring items, and severance costs. We believe that the items excluded from Adjusted EBITDA are not connected to and do not represent the operating performance of Company. We believe that Adjusted EBITDA is useful supplemental information as it provides an indication of the results generated by Company's main business activities prior to taking into consideration how those activities are financed and taxed as well as expenses related to stock-based compensation, depreciation, amortization, restructuring costs, other expense (income), and foreign exchange (gain) loss. Accordingly, we believe that this measure may also be useful to investors in enhancing their understanding of Company's operating performance. It is a key measure used by Company's management and board of directors to understand and evaluate Company's operating performance, to prepare annual budgets and to help develop operating plans. Forward-Looking Statements This news contains "forward-looking statements" within the meaning of applicable Canadian securities laws (collectively, "forward-looking statements") which reflect the current expectations of management of the company's future growth, results of operations, performance, and business prospects and opportunities, including the statements made above with respect to: (i) the Company's anticipation of scaling the business going forward. (. Forward-looking statements are frequently, but not always, identified by words such as "may", "would", "could", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential for", "intend" and similar expressions or the negative of these terms or other comparable terminology, although these words may not be present in all forward-looking statements. Forward-looking statements are based on management's assumptions as at the date of the forward-looking statements are provided.. Though management believes that its assumptions are reasonable in the circumstances, forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance or achievements to differ materially from all or any of the future results, performance or achievements expressed or implied by forward-looking statements. Risk factors that could cause the Company's actual results, performance, or achievements to differ from the forward-looking statements in this news release. and prospective investors should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in the news release are based upon what management currently believes to be reasonable assumptions, the Company cannot assure prospective investors that actual results, performance or achievements will be consistent with these forward-looking statements. Except as required by law, the Company expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. SOURCE CareSpan Health, Inc. PDF Document File: Attachment CareSpan - News Release - June Interim Statements (004).pdf CARESPAN HEALTH, INC. ISSUES SECOND QUARTER and First Six Months ended June 30, 2023 FINANCIAL STATEMENTS VANCOUVER, BC, August 29, 2023 /CNW/ CareSpan Health, Inc. (TSXV: CSPN) (the "Company" or "CareSpan"), a company addressing the shortage in primary care and mental health through its provider networks, American-APN and American-Med Psych, and its leading "Clinic-in-the-Cloud" integrated digital care platform, is pleased to announce its consolidated results for the quarter ended June 30, 2023. All amounts are expressed in U.S. dollars. The Company's profitability improved during the quarter compared to the same period last year despite the decline in revenue due to the reduction of Covid-related cases and typical seasonality. Operating (loss) in Q2 2023 improved by 22% from Q2 2022. This was achieved through a steady shift to higher-margin services and continued cost containment and productivity measurestaken by the Company starting in 2022, reducing operating expenses by $1,124,120, or 48%, from Q2 2022 to Q2 2023. The decline in patient encounters and revenue between the first six months of 2023 compared to the first six months of June 30, 2022 is due singularly to the significant drop in COVID-19- related encounters and associated reimbursements. The surge in COVID-19/Omicron-related cases in Q4 2021 and Q1 2022, and its subsequent decline is consistent with COVID-19 case patterns experienced across the United States. The decline in revenue from Q1 2023 to Q2 2023 is related to the typical seasonality of clinical encounters. While COVID 19-related encounters declined, patient visits related to medical assessments for U.S. military veterans increased by over 70% for the same period, from 670 in the first six months of 2022 compared to over 1,150 in the first six months of 2023. According to Rembert de Villa, Chairman and CEO, "We continue to scale services that drive improved productivity and margins, such as conducting medical assessments for U.S. military veterans. As we reported in our 2022 annual results, we are focused on accelerating our path to get to cash flow positive by executing on the current backlog of higher-margin contracts, developing new contracts for our members, and right-sizing operations and SG&A. In Q2 2023, we continued to be very intentional in our in our technology spend, enhancing our `Clinic-in-the-Cloud' platform through high-impact functions and features that improve revenue capture and profitability." Leslie Markow, Chief Financial Officer, explains, "Highlights of our financial results are as follows: Second Quarter 2023 Financial Highlights dot The number of billed patient encounters decreased to 6,014 in Q2 2023 from 9,256 in Q2 2022 due to the decrease in visits relating to COVID-19 cases, as mentioned above. dot Operating expenses in Q2 2022 were $2,244,739 compared to $1,220,619 in Q2 2023, an improvement of $1,124,120 or 48%. This was primarily the result of a reduction in practice fees, as well as cost reduction measures to reduce salary costs, contractor costs, information technology costs, while improving productivity. dot The resulting operating loss for Q2 2023 was ($478,360) compared to $(1,234,126) in Q2 2022, an improvement of 61%. dot Total Comprehensive (Loss) for the Company was ($293,753) in Q2 2023 compared to ($1,218,334) in Q12 2022. dot (Loss) per share improved from ($0.04) in Q2 2022 1 to ($0.01) in Q2 2023. 2022. The weighted average number of common shares outstanding was 30,725,486 at December 31, 2022, and 46,823,795 at June 30, 2023. dot Adjusted EBITDA improved to ($241,717) in Q1 2023 compared to ($1,139,931) in Q2 2022. dot The Company's cash balance was $86,925 at June 30, 2023 compared to $393,746 as of December 31, 2022. dot Trade and accounts receivable declined from $985,473 at December 31, 2022 compared to $483,715 due to cash receipts in the first half of 2023 and lower encounters in the first six months of 2023, as described above. dot Accounts payable, accrued liabilities and amounts due to related parties increased from $2,264,246 at December 31, 2022 to $2,336,864 at June 30, 2023. The increase is due to payments to vendors offset by loans provided of $490,000 received in the first six months ended June 30, 2023. dot Shareholders' (deficiency) increased from ($1,766,224) on June 30, 2023 compared to ($885,025) on December 31, 2023., Events Subsequent to June 30, 2023 dot The Company signed a Software-as-a-Service (SaaS)agreement with Golden Care Solutions of Minnesota for the use of the CareSpan platform for Golden Care's operations. Golden Care Solutions is a nationwide network of medical service companies and medical practices that provides turnkey solutions for revenue enhancement, productivity enhancement, and improved outcomes. A separate press release will be issued shortly announcing the recent signing of this agreement. dot The Company is in the process of finalizing the agreement with ChopraX, announced in Q2 2023, as well as mobilizing resources to launch Chopra Whole Person Care, powered by CareSpan, in Q3/Q4 of this year. dot After June 30, 2023, the Company received loans from the Chairman and CEO and a third party of $100,000. These loans are due in one year, bearing an interest rate of 12%. The loan holders have the option to be converted into a future qualified equity financing in excess of CAD $1 million. The Company's loan from a former director of $165,000 plus interest, previously due March 31, 2023, was extended to August 31, 2023. Outlook CareSpan is focused on executing its growth strategy in 2023 and beyond and achieving positive cash flow position, mainly through the following: dot Finalization of the Definitive Agreement and execution of Chopra Whole Person Care, a unique integrative medicine offering to market in the U.S. and globally, leveraging the Chopra brand, clinical methodology and protocols, and provider relationships, as well as CareSpan's Clinic-in-the-Cloud platform and operations. dot Focus on delivering on the backlog of signed contracts for U.S. military veterans' assessments, as well as medical supervision of remote patient monitoring for patients of weight loss programs. dot Narrowed focus on recruiting clinicians (mainly Nurse Practitioners) specifically in geographies matching these contracts to accelerate growth post onboarding and improve revenue and margins for both CareSpan and its clinician members. dot Maintain productivity and continued reduced cost structure to improve cash flow enroute to being cash flow positive. The Company intends to continue strict control of expenses by focusing mainly on expense items that are directly tied to revenue capture. About CareSpan Health, Inc. CareSpan is a healthcare technology and services company incorporated in British Columbia. CareSpan's proprietary "Clinic-in-the Cloud" is a clinical workflow driven platform designed by doctors that integrates remote patient monitoring, diagnostic tools, the patient's electronic health record, care collaboration capabilities, patient engagement and e-prescribing and lab ordering. CareSpan's platform seamlessly supports both in-person and virtual/telehealth care. CareSpan is using this platform combined with essential business services to build provider networks across the U.S. that deliver primary and chronic care, and urgent care as well as behavioral health care. About American-APN and American-MedPsych American-APN is one of the first professional "group practices without walls" that brings highly qualified Nurse Practitioners to those in need of health care under a collaborative care system that uses digital technologies. American-APN was created for and by advanced practice nurses and NPs (Nurse Practitioners). It is operated exclusively by its nurse practitioner membership with its own executive leadership and board of directors. American-MedPsych brings together behavioral health specialists in their own "practice without walls," allowing them to collaborate with American-APN and other primary care providers to address the growing behavioral health shortage in the United States. American-MedPsych is a growing national group practice of behavioral specialists delivering care using the CareSpan Clinic and supported by CareSpan Integrated Network's management services organization. American-MedPsych specialists uses sophisticated digital care tools in collaboration with primary care counterparts to manage reinforcing conditions such as depression and diabetes, substance abuse and pain, stress, and job performance, to alleviate suffering and improve outcomes. Members of both networks benefit from the suite of technology and business services and solutions offered by CareSpan Integrated Networks. ON BEHALF OF THE BOARD OF DIRECTORS: Rembert de Villa Chairman and Chief Executive Officer For further information please visit: http://www.carespanhealth.com, http://www.americanapn.com and http://www.americanmedpsych.com Use of Non-IFRS Measures This press release refers to certain non-IFRS (International Financial Reporting Standards) measures including, but not limited to Adjusted EBITDA (as defined herein). These measures do not have a standardized meaning prescribed by IFRS and therefore they may not be comparable to similarly titled measures presented by other companies and should not be construed as an alternative to other financial measures determined in accordance with IFRS. Rather, these non- IFRS measures are provided as additional information to complement IFRS measures by providing a further understanding of operations from management's perspective. Accordingly, non-IFRS measures should not be considered in isolation nor as a substitute for analysis of financial information reported under IFRS. Management believes that these non-IFRS measures provide useful information to investors in measuring the financial performance of Company for the reasons outlined below. Management uses Adjusted earnings before interest, income taxes, depreciation, and amortization ( "Adjusted EBITDA" ) as a key financial metric to evaluate Company's operating performance as a complement to results provided in accordance with IFRS. The term "Adjusted EBITDA", as defined by management, refers to net income (loss) before adjusting earnings for finance costs, income taxes, stock-based compensation, amortization, non-recurring items, and severance costs. We believe that the items excluded from Adjusted EBITDA are not connected to and do not represent the operating performance of Company. We believe that Adjusted EBITDA is useful supplemental information as it provides an indication of the results generated by Company's main business activities prior to taking into consideration how those activities are financed and taxed as well as expenses related to stock-based compensation, depreciation, amortization, restructuring costs, other expense (income), and foreign exchange (gain) loss. Accordingly, we believe that this measure may also be useful to investors in enhancing their understanding of Company's operating performance. It is a key measure used by Company's management and board of directors to understand and evaluate Company's operating performance, to prepare annual budgets and to help develop operating plans. Forward-Looking Statements This news contains "forward-looking statements" within the meaning of applicable Canadian securities laws (collectively, "forward-looking statements") which reflect the current expectations of management of the company's future growth, results of operations, performance, and business prospects and opportunities, including the statements made above with respect to: (i) the Company's anticipation of scaling the business going forward. (. Forward-looking statements are frequently, but not always, identified by words such as "may", "would", "could", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential for", "intend" and similar expressions or the negative of these terms or other comparable terminology, although these words may not be present in all forward-looking statements. Forward-looking statements are based on management's assumptions as at the date of the forward-looking statements are provided.. Though management believes that its assumptions are reasonable in the circumstances, forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance or achievements to differ materially from all or any of the future results, performance or achievements expressed or implied by forward-looking statements. Risk factors that could cause the Company's actual results, performance, or achievements to differ from the forward-looking statements in this news release. and prospective investors should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in the news release are based upon what management currently believes to be reasonable assumptions, the Company cannot assure prospective investors that actual results, performance or achievements will be consistent with these forward-looking statements. Except as required by law, the Company expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. SOURCE CareSpan Health, Inc.