HEALWELL AI Reports Record Revenue and a Healthy Balance Sheet in Q2-2024

Rhea-AI Summary

HEALWELL AI Inc. (TSX: AIDX) (OTCQX: HWAIF) reported record quarterly revenue of $5.44 million in Q2-2024, a 205% increase from Q2-2023. The company also achieved net income of $2.54 million, compared to a loss of $9.81 million in Q2-2023. This turnaround was primarily due to settling past liabilities and successful equity financing of $20 million.

Key highlights include:

• Adjusted Gross Profit of $3.76 million, up 669% year-over-year
• Adjusted Gross Margin of 69%, up from 27% in Q2-2023
• Cash balance of $19.82 million as of June 30, 2024
• Acquisition of BioPharma Services Inc. and Verosource Solutions Inc. on July 1, 2024

HEALWELL aims to reach a revenue run-rate approaching $100 million by year-end, driven by M&A activities and increased adoption of its AI-powered healthcare solutions.

Positive

• Record quarterly revenue of $5.44 million, up 205% year-over-year
• Net income of $2.54 million, compared to a loss of $9.81 million in Q2-2023
• Adjusted Gross Profit increased by 669% to $3.76 million
• Adjusted Gross Margin improved to 69% from 27% in Q2-2023
• Successful $20 million equity financing completed
• Cash balance increased to $19.82 million
• Strategic acquisitions of BioPharma Services and Verosource Solutions completed
• Aiming for revenue run-rate approaching $100 million by year-end

Negative

• Adjusted EBITDA loss of $3.68 million in Q2-2024
• Remaining debt of $13.2 million in convertible debentures and loans

• HEALWELL achieved record quarterly revenue from continuing operations of $5.44 million in Q2-2024, 205% higher than the $1.78 million generated in Q2-2023 and 19% higher than the $4.58 million generated in Q1-2024.

• HEALWELL also reported net income of $2.54 million as compared to a loss of $9.81 million in Q2 2023. This was primarily due to the successful removal and settling of a significant number of liabilities incurred in past years.

• Management maintains a positive outlook, with HEALWELL's yearly revenue run-rate now exceeding $65 million and aiming to reach a figure that is approaching $100 million by year-end, driven by a robust M&A pipeline supported by its strong cash balance, including proceeds from its recent $20 million equity financing.

• HEALWELL has now successfully launched its two-tiered business model of leveraging data science and Artificial Intelligence (AI) to support healthcare providers with co-pilot technologies and meet the needs of the pharmaceutical industry related to research and development and clinical trials orchestration.

Toronto, Ontario--(Newsfile Corp. - August 12, 2024) - HEALWELL AI Inc. (TSX: AIDX) (OTCQX: HWAIF) ("HEALWELL" or the "Company"), a healthcare technology company focused on AI and data science for preventative care, is pleased to announce its condensed interim consolidated financial results for the quarter ended June 30, 2024.

Dr. Alexander Dobranowski, Chief Executive Officer of HEALWELL, commented, "During the quarter, we not only delivered record revenue and profitability, but we also significantly improved our balance sheet. We successfully completed a $20 million equity financing sourced mainly from long term institutional investors as well as settled and removed a number of liabilities incurred in past years which led to a significant net profit in Q2. The combination of these two events has notably strengthened our financial position, providing us with the necessary resources to advance our strategic objectives. The enhanced financial stability enabled us to complete the acquisitions of BioPharma and VeroSource on July 1, 2024, two pivotal moves that align seamlessly with our growth strategy. These acquisitions not only broaden our market presence but also enhance our capabilities, positioning us for robust expansion and long-term success."

Dr. Alexander Dobranowski further added, "Our robust acquisition pipeline, coupled with our strong cash position, strategically positions us for substantial growth ahead. We anticipate that our strategic initiatives will drive us to achieve a figure approaching $100 million revenue run-rate by year-end, having already exceeded $65 million. This growth is underpinned by our continued focus on ramping up physician adoption of the HEALWELL platform, accelerating the sales of our AI tools and technology, and broadening our reach within the WELL Health ecosystem. We are seeing unprecedented opportunities in healthcare data science and artificial intelligence, and we believe that our advanced AI co-pilot technology is at the forefront of this evolution. Our commitment to enhancing healthcare delivery through innovative technology remains unwavering, and we are poised to capitalize on these opportunities to drive substantial value for our stakeholders."

Anthony Lam, Chief Financial Officer of HEALWELL, commented, "During the quarter, in addition to our successful equity financing, we received approximately $8.8 million from the exercise of in-the-money warrants, both of which significantly strengthened our balance sheet. We reduced our liabilities by $14.3 million and acquired the remaining 20% interest in MCI Polyclinic Group. All together between a reduction in liabilities and injection of new capital, we strengthened the balance sheet by $43.1 million during the quarter. We are now well-positioned to explore strategic acquisitions throughout the year from a stronger financial position. Our debt is now limited to $13.2 million in convertible debentures and loans, excluding earn-outs to acquisition partners. Our convertible debt is expected to convert into equity, potentially reducing that $13.2 million of debt to a mere $1.6 million. It should be noted that if all of the Company's outstanding in-the-money warrants were to be exercised, our cash balance would grow to approximately $45 million. With our robust financial position and reduced liabilities, we are confident in our ability to continue executing our strategic initiatives and delivering value to our stakeholders."

A summary of the Company's financial and operational results is set out below, and more detailed information is contained in the interim consolidated financial statements and related management discussion and analysis, which are available on the Company's SEDAR+ page at www.sedarplus.com. Financial measures described as "Adjusted" in this news release are non-IFRS financial measures and may not be comparable to other similar measures disclosed by other companies. Please see Non-IFRS Financial Measures below for more information.

Second Quarter 2024 Financial Highlights

Significant financial highlights for the Company's continuing operations during the three months ended June 30, 2024 included the following:

• HEALWELL achieved quarterly revenue from continuing operations of $5.44 million in Q2-2024, 205% higher than the $1.78 million generated in Q2-2023. The growth in revenue is primarily attributed to the acquisition of Intrahealth Systems Limited ("Intrahealth") and Pentavere Research Group ("Pentavere").

• HEALWELL achieved Adjusted Gross Profit⁽²⁾ of $3.76 million during Q2-2024, an increase of 669% compared to $0.49 million in Q2-2023. The increase in Adjusted Gross Profit is primarily attributed to the addition of Intrahealth and Pentavere.

• HEALWELL achieved an Adjusted Gross Margin⁽²⁾ percentage of 69% during Q2-2024, compared to 27% in Q2-2023. The improvement in Adjusted Gross Margin was also primarily due to the addition of Intrahealth and Pentavere.

• During Q2-2024, HEALWELL reported an Adjusted EBITDA⁽¹⁾ loss of $3.68 million, compared to a loss of $9.89 million in Q2-2023. The improvement in Adjusted EBITDA was due to reduced operating expenses and elimination of loss-making clinic operations coupled with an increase in revenues to produce improved results over the comparable periods in 2023.

• HEALWELL reported $2.54 million in Net Income as compared to a loss of $9.81 million in Q2 2023. This was primarily due to the successful removal and settling of a significant number of liabilities incurred in past years.

• As at June 30, 2024, HEALWELL had $19.82 million in cash, compared to $11.34 million as at March 31, 2024. This increase was driven by an equity offering raising gross proceeds of $20 million, and the exercise of in-the-money warrants totaling approximately $8.8 million.

Second Quarter 2024 Business and Operational Highlights

Significant business and operational highlights for the Company during the three months ended June 30, 2024 included:

• Equity Financing: On May 22, 2024, the Company conducted a private placement issuing 14,815,000 Subordinate Voting Shares at $1.35 per share, generating gross proceeds of $20 million. As part of this offering, the Company granted 7,407,500 initial warrants and 586,677 compensation warrants to the underwriters. These warrants are exercisable to acquire one Subordinate Voting Share each over a 24-month period following the placement's closing at a price of $1.80 per share for the initial warrants and $1.35 per share for the compensation warrants.

• New CFO: On June 4, 2024, the Company appointed Mr. Anthony Lam as its new Chief Financial Officer.

• Acquisition of Remaining 20% Interest in MCI Polyclinic: On June 17, 2024, the Company acquired the remaining 20% equity interest in MCI Polyclinic Group Inc. ("MCI Polyclinic"). The acquisition was implemented by having MCI Polyclinic, a subsidiary of HEALWELL, purchase for cancellation the 20% equity interest owned by Health Network Efficiencies Inc. for $625,000 in cash and the transfer of Executive Medical Concierge Canada (2021) Ltd., one of MCI Polyclinic's subsidiaries. This transaction makes MCI Polyclinic now wholly-owned by HEALWELL.

• Settlement of Indebtedness: On or about June 28, 2024, MCI Medical Clinics Inc. ("MCI Medical"), a subsidiary of HEALWELL, entered into settlement agreements in respect of certain outstanding payables and lease arrangements, resulting in the extinguishment of approximately $2.9 million of payment arrears and approximately $3.9 million of potential future liabilities relating to rent and operating costs. Subsequently, MCI Medical also received the forgiveness of approximately $7.9 million of loans originally advanced by The First Canadian Wellness Co Inc. ("FCW") in 2022 and 2023, as originally provided under the debt resolution and acknowledgement agreement between the Company, WELL Health Technologies Corp. ("WELL Health") and FCW dated July 19, 2023.

• Investment in X.AI: On June 26, 2024, the Company completed an investment of US$2 million (CAD$2.75 million) in X.AI Corp., an artificial intelligence company founded by Elon Musk in 2023. The investment was made indirectly through a Think 1st Principles investment vehicle. Through this investment, the Company has gained access to the closed X.AI Developer Program, allowing the Company to leverage the world-leading technical and AI-oriented expertise and resources of X.AI Corp.

Events Subsequent to June 30, 2024

Significant business and operational highlights for the Company subsequent to June 30, 2024 included:

• Acquisition of BioPharma Services Inc: On July 1, 2024, the Company acquired 100% of the shares of Biopharma from Think Research Corporation for a total purchase price of approximately $15 million. Founded in 2006, BioPharma is dedicated to advancing medical science in order to improve the lives of its patients by bringing pharmaceutical products to the market through high quality medical research. It uses state-of-the-art facilities and scientific expertise to provide customers with clinical trial services along with a full suite of support services.

• Acquisition of Verosource Solutions Inc: On July 1, 2024, the Company acquired 100% shares of Verosource for a total purchase price of approximately $24.5 million. Founded in 2014, Verosource provides a VS Platform, which is an end-to-end, customizable, cloud-based solution that enables people, clinicians, and decision-makers to seamlessly access and work with healthcare data. It helps customers in digital transformation, integration of systems, adoption with right-fit cloud services, advanced analytics, enterprise resource planning and IT strategy.

• Participation in Health Compass II Project: On July 10, 2024, WELL Health announced HEALWELL AI's participation in the Health Compass II project, the largest DIGITAL initiative to date, which is supported by $15.3 million in federal funding over four years. HEALWELL AI's Decision Compass module will enhance early diagnosis and care for rare and complex diseases through advanced AI technology. This collaboration underscores HEALWELL AI's commitment to advancing healthcare through AI and interoperability, benefiting providers and patients across Canada.

Webcast and Conference Call Details:

HEALWELL will be holding a conference call and simultaneous webcast to discuss its financial results on Monday, August 12, 2024 at 5:30 pm ET (2:30 pm PT). The call will be hosted by Dr. Alexander Dobranowski, Chief Executive Officer, and Anthony Lam, Chief Financial Officer. Please dial-in 10 minutes prior to the start of the call.

Date: Monday, August 12, 2024
Time: 5:30 pm ET / 2:30 pm PT

For attendees who wish to join by webcast, the event can be accessed at: https://edge.media-server.com/mmc/p/ejqqmqy4

Attendees who wish to join by phone must visit the following link and pre-register: https://register.vevent.com/register/BIa66ea4dcfe1b4dd981a3ee71ae03ad54

Selected Financial Information
(in thousands of dollars, except percentages and per share amounts)

		Three months ended						Period over						Six months ended						Period over
		June 30						period Change						June 30						period Change
		2024			2023			$			%			2024			2023			$			%
		($ in thousands except percentages)												($ in thousands except percentages)
Continuing operation
Revenue		5,442			1,785			3,657			205			10,022			3,757			6,265			167
Cost of Revenue		2,129			1,454			675			46			4,319			2,923			1,396			48
Gross Profits		3,313			331			2,982			902			5,703			834			4,869			584
Research and development		800			700			100			14			1,717			2,551			(834	)		(33	)
Sales and marketing		1,503			318			1,185			372			2,264			638			1,626			255
General and administrative		8,346			2,964			5,382			182			14,494			5,316			9,178			173
Impairment of right of use assets		850			-			850			-			850			-			850			-
Impairment of goodwill and intangibles		-			7,629			(7,629	)		(100	)		-			7,629			(7,629	)		(100	)
		11,499			11,611			(112	)		(1	)		19,325			16,134			3,191			20
Financing expenses		622			418			204			49			1,475			637			838			131
Other income		(159	)		(4	)		(155	)		3,875			(351	)		(10	)		(341	)		3,410
Share of comprehensive loss from associate		-			(26	)		26			(100	)		-			-			-			-
Changes in fair value of call options		250			-			250			-			650						650
Changes in fair value of contingent consideration payable		-			(30	)		30			(100	)		-			(37	)		37			(100	)
Changes in fair value of investments		-			11			(11	)		(100	)		-			134			(134	)		(100	)
Loss on settlement of shares-contingent consideration		-			-			-			-			-			677			(677	)		(100	)
Debt forgiveness		(7,863	)		-			(7,863	)		-			(7,863	)		-			(7,863	)		-
Liability extinguishment		(3,088	)		-			(3,088	)					(3,088	)		-			(3,088	)		-
Impairment of investment in an associate		-			-			-			-			-			2,180			(2,180	)		(100	)
		(10,238	)		369			(10,607	)		(2,872	)		(9,177	)		3,581			(12,758	)		(356	)
Income (Loss) before taxes		2,052			(11,649	)		13,701			(118	)		(4,445	)		(18,881	)		14,436			(76	)
Income tax recovery		(531	)		(731	)		200			(27	)		(765	)		(950	)		185			(19	)
Net Income (loss)-continuing operation		2,583			(10,918	)		13,501			(124	)		(3,680	)		(17,931	)		14,251			(79	)
Net profit (loss) on discontinued operations, net of tax		(43	)		1,105			(1,148	)		(104	)		(54	)		667			(721	)		(108	)
Net Income (loss)		2,540			(9,813	)		12,353			(126	)		(3,734	)		(17,264	)		13,530			(78	)
Continuing operation
Adjusted Gross Profit (1)		3,761			489			3,272			669			6,596			1,150			5,446			474
Adjusted Gross Margin (1)		69%			27%			42%			152			66%			31%			35%			115
Adjusted EBITDA (1)		(3,676	)		(9,893	)		6,217			(63	)		(6,275	)		(12,615	)		6,340			(50	)
Adjusted EBITDA Margin (1)		(68%)			(554%)			(487%)			(88	)		(63%)			(336%)			273%			(81	)
Discontinued operation
Adjusted Gross Profit (1)		105			2,944			(2,839	)		(96	)		340			6,271			(5,931	)		(95	)
Adjusted Gross Margin (1)		44%			34%			10%			30			71%			35%			37%			106
Adjusted EBITDA (1)		43			(433	)		476			(110	)		45			(418	)		463			(111	)
Adjusted EBITDA Margin (1)		17.8%			(5%)			23%			(455	)		9.4%			(2%)			12%			(510	)
Net income/(loss) attributable to Company shareholders
- Continuing operation		2,625			(8,700	)		11,325			(130	)		(3,289	)		(17,902	)		14,613			(82	)
- Discontinued operation		(43	)		(1,105	)		1,062			(96	)		(54	)		667			(721	)		(108	)
		2,582			(9,805	)		12,387			(126	)		(3,343	)		(17,235	)		13,892			(81	)
Weighted average number of
Of Share outstanding: Basic and diluted		125,215			53,870									119,205			52,900
Net income (loss) per share -Basic and diluted
- Continuing operation		0.02			(0.16	)								(0.03	)		(0.34	)
- Discontinued operation		(0.0003	)		(0.02	)								(0.0005	)		0.01
		0.02			(0.18	)								(0.03	)		(0.33	)
(1) Adjusted Gross Profit, Adjusted Gross Margin, Adjusted EBITDA and Adjusted EBITDA Margin are non-IFRS measures. Please see "Non-IFRS Measures" above for an explanation of the composition of these measures and their usefulness, and "Reconciliation of Non-IFRS Measures" below for a reconciliation of these measures to the IFRS measures found in the Financial Statements.

 

Selected Statement of Financial Position Data

		June 30 2024			December 31 2023
		$ in thousands
Cash		19,823			19,162
Accounts receivable		4,021			1,115
Call options		850			1,500
Net investment in subleases		297			375
Investment in equity securities		3,162			410
Other assets		4,211			1,440
Advance against Investment		8,427			-
Assets classified as held for sale		-			1,150
Liabilities associated with assets classified as held for sale		-			(897	)
Accounts payable and accrued liabilities		(4,533	)		(6,421	)
Bank loan		(1,570	)		(1,541	)
Related party loan		(10,594	)		(11,181	)
Lease liabilities		(3,544	)		(5,274	)
Other liabilities		-			(86	)
Debenture Payable		(2,859	)		(2,932	)
Non-controlling interest redeemable liability		-			(1,282	)
Liability for contingent consideration		(260	)		(260	)

 

Non-IFRS Financial Measures

The terms Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Gross Profit and Adjusted Gross Margin used in this document do not have any standardized meaning under IFRS, may not be comparable to similar financial measures disclosed by other companies and should not be considered a substitute for, or superior to, IFRS financial measures. Readers are advised to review the section entitled "Non-IFRS Financial Measures" in the Company's management discussion and analysis for the quarter ended June 30, 2024, available on the Company's SEDAR+ page at www.sedarplus.com, for a detailed explanation of the composition of these measures and their uses.

(1) The following table reconciles Adjusted EBITDA and Adjusted EBITDA Margin to net income (loss) for the six-month and three-month periods ended June 30, 2024 and 2023:

		Three months ended						Six months ended
		June 30						June 30
		2024			2023			2024			2023
		$ in thousands						$ in thousands
Total Revenue
- Continuing operation		5,442			1,785			10,022			3,757
- Discontinued operation		241			8,604			477			18,166
		5,683			10,389			10,499			21,923
Net (loss) income
- Continuing operation		2,583			(10,918	)		(3,680	)		(17,931	)
- Discontinued operation		(43	)		1,105			(54	)		667
		2,540			(9,813	)		(3,734	)		(17,264	)
Add back (deduct)
Continuing operation
Depreciation and amortization		2,146			776			4,001			1,591
Net finance charges		622			418			1,475			637
Other income		(159	)		(4	)		(351	)		(10	)
Share of comprehensive loss (income) from associate		-			(26	)		-			-
Gain/ Loss on settlement of shares-contingent consideration		-			-			-			677
Impairment of investment in associate		-			-			-			2,180
Changes in fair value of Call options		250			-			650			-
Changes in fair value of contingent consideration		-			(30	)		-			(37	)
Changes in fair value of investments		-			11			-			134
Share-based payment expense		702			714			1,183			1,121
Acquisition related expenses		560			-			1,072			-
Expected credit loss (recovery)		23			(103	)		12			(27	)
Income taxes recovery		(531	)		(731	)		(765	)		(950	)
Liability Extinguishment		(3,088	)		-			(3,088	)		-
Debt forgiveness		(7,863	)		-			(7,863	)		-
Impairment on right of use asset		850			-			850			-
Loss on Disposal of fixed assets		229			-			229			-
Discontinued operation
Depreciation and amortization		1			421			2			870
Net finance charges		7			56			19			200
Impairment charged (reversal)		-			147			-			-
Loss (gain) on disposal of subsidiary		78			(2,106	)		78			(2,106	)
Expected credit recovery		-			(56	)		-			(49	)
		-
Adjusted EBITDA
- Continuing operation		(3,676	)		(9,893	)		(6,275	)		(12,615	)
- Discontinued operation		43			(433	)		45			(418	)
Adjusted EBITDA Margin
- Continuing operation		(68%)			(554%)			(63%)			(336%)
- Discontinued operation		18%			(5%)			9%			(2%)

 

(2) The following table reconciles Adjusted Gross Profit and Adjusted Gross Margin to revenue and cost of revenue for the six-month and three-month periods ended June 30, 2024:

		Three months ended						Period over						Six months ended						Period over
		June 30						period Change						June 30						period Change
		2024			2023			$			%			2024			2023			$			%
		($ in thousands except percentages)												($ in thousands except percentages)
Revenue
- Continuing operation		5,442			1,785			3,657			205			10,022			3,757			6,265			167
- Discontinued operation		241			8,604			(8,363	)		(97	)		476			18,166			(17,689	)		(97	)
Cost of revenue
- Continuing operation		2,129			1,454			675			46			4,319			2,923			1,396			48
- Discontinued operation		135			6,081			(5,946	)		(98	)		135			12,766			(12,631	)		(99	)
Add:
Depreciation and amortization
- Continuing operation		448			158			290			184			893			317			576			182
- Discontinued operation		1			421			(420	)		(100	)		2			(870	)		(868	)		(100	)
Continuing operation
Adjusted Gross Profit		3,761			489			3,272			669			6,596			1,150			5,446			474
Adjusted Gross Margin		69%			27%									66%			31%
Discontinued operation
Adjusted Gross Profit		105			2,944			(2,839	)		(96	)		340			6,271			(5,931	)		(95	)
Adjusted Gross Margin		44%			34%									71%			35%

 

Dr. Alexander Dobranowski
Chief Executive Officer
HEALWELL AI Inc.

About HEALWELL

HEALWELL is a healthcare technology company focused on AI and data science for preventative care. Its mission is to improve healthcare and save lives through early identification and detection of disease. Using its own proprietary AI technology and competencies which includes data science, electronic health records and clinical research offerings, the Company is developing and commercializing advanced clinical decision support systems that can help healthcare providers detect rare and chronic diseases, improve efficiency of their practice and ultimately help improve patient health outcomes. HEALWELL is publicly traded on the Toronto Stock Exchange under the symbol "AIDX" and on the OTC Exchange under the symbol "HWAIF". To learn more about HEALWELL, please visit healwell.ai.

Forward Looking Statements

Certain statements in this press release, constitute "forward-looking information" and "forward looking statements" (collectively, "forward looking statements") within the meaning of applicable Canadian securities laws and are based on assumptions, expectations, estimates and projections as of the date of this press release. Forward-looking statements include statements with respect to the Company's acquisition pipeline, its plans and strategies for achieving organic and inorganic growth, and the anticipated performance of the Company and its subsidiaries in 2024, including potential revenue growth and changes to cashflow and EBITDA. The words " "improve", "grow", "position", "continuing", "potential", "future", "anticipated", "expect", "outlook", "believe", "opportunities" "aiming", "driven by", "poised" or variations of such words and phrases or statements that certain future conditions, actions, events or results "will", "may", "could", "would", "should", "might" or "can", or negative versions thereof, "occur", "continue" or "be achieved", and other similar expressions, identify forward-looking statements. Forward-looking statements are necessarily based upon management's perceptions of historical trends, current conditions and expected future developments, as well as a number of specific factors and assumptions that, while considered reasonable by the Company as of the date of such statements, are outside of the Company's control and are inherently subject to significant business, economic and competitive uncertainties and contingencies which could result in the forward-looking statements ultimately being entirely or partially incorrect or untrue. Forward looking statements contained in this press release are based on various assumptions, including, but not limited to, the following: the Company's ability to maintain its relationships with its commercial partners and to successfully implement its strategic alliances with them; the Company's future access to debt and equity financing; the availability of working capital and sources of liquidity; the Company's ability to achieve its growth and revenue strategies; the availability of potential acquisition targets, the Company's ability to complete acquisitions successfully, and the terms on which acquisitions may be completed; the demand for the Company's products and fluctuations in future revenues; the availability of future business ventures, commercial arrangements and acquisition targets or opportunities and the Company's ability to consummate them and to effectively integrate future acquisition targets into its platform; the Company's ability to grow its customer base; the effects of competition in the industry; the requirement for increasingly innovative product solutions and service offerings; trends in customer growth; the stability of general economic and market conditions; currency exchange rates and interest rates; the Company's ability to comply with applicable laws and regulations; the Company's continued compliance with third party intellectual property rights; and that the risk factors noted below, collectively, do not have a material impact on the Company's business, operations, revenues and/or results. By their nature, forward-looking statements are subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct, and that objectives, strategic goals and priorities will not be achieved. Past performance is not indicative of future results.

Known and unknown risk factors, many of which are beyond the control of the Company, could cause the actual results of the Company to differ materially from the results, performance, achievements or developments expressed or implied by such forward-looking statements. Such risk factors include but are not limited to those factors which are discussed under the section entitled "Risk Factors" in the Company's annual information form dated April 1, 2024, which is available under the Company's SEDAR+ profile at www.sedarplus.com. The risk factors are not intended to represent a complete list of the factors that could affect the Company and the reader is cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking statements. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are provided for the purpose of providing information about management's expectations and plans relating to the future. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law. All of the forward-looking statements contained in this press release are qualified by these cautionary statements.

For more information:
Pardeep S. Sangha
Investor Relations, HEALWELL AI Inc.
Phone: 604-572-6392
ir@healwell.ai

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/219714

FAQ

What was HEALWELL AI's revenue in Q2-2024?

HEALWELL AI reported record quarterly revenue of $5.44 million in Q2-2024, representing a 205% increase from Q2-2023.

How much net income did HEALWELL AI (HWAIF) report for Q2-2024?

HEALWELL AI reported net income of $2.54 million for Q2-2024, compared to a loss of $9.81 million in Q2-2023.

What was HEALWELL AI's cash balance as of June 30, 2024?

HEALWELL AI's cash balance was $19.82 million as of June 30, 2024, up from $11.34 million as of March 31, 2024.

What acquisitions did HEALWELL AI complete after Q2-2024?

HEALWELL AI completed the acquisitions of BioPharma Services Inc. and Verosource Solutions Inc. on July 1, 2024.

What is HEALWELL AI's revenue run-rate target for year-end 2024?

HEALWELL AI aims to reach a revenue run-rate approaching $100 million by year-end 2024.