-
HEALWELL achieved record annual revenue from continuing operations of approximately $39 million in fiscal 2024, an increase of 433% compared to fiscal 2023. HEALWELL achieved record quarterly revenue from continuing operations of $15.2 million in Q4-2024, 692% higher than the $1.9 million generated in Q4-2023 and 11% higher than the $13.7 million generated in Q3-2024
-
On December 16, 2024, HEALWELL announced the acquisition of Orion Health Holdings Limited (“Orion Health”, or “Orion”), a leader in global healthcare technology, with over 70 worldwide customers in 11 countries. Orion is expected to contribute more than $100 million in annual revenues and propel the Company into being Adjusted EBITDA positive thereafter. Furthermore, in anticipation of the closing of the Orion Health acquisition, the Company has proactively executed several cost optimization initiatives.
-
The Orion Health acquisition is expected to close on April 1, 2025. Between the recently signed $50 million credit agreement with Scotiabank and RBC, and the capital raised through the Company’s recently completed subscription receipt financings, HEALWELL has financing arrangements for over $100 million in place to support the closing of this acquisition.
Fiscal 2024 Annual Financial Highlights:
Significant financial highlights for the Company’s continuing operations during the year ended December 31, 2024 included:
- HEALWELL achieved annual revenue from continuing operations of approximately $39 million during 2024, an increase of 433% compared to revenue of $7.3 million in 2023.
- HEALWELL achieved Gross Profit(2) of $17.3 million in 2024, compared to $1.2 million in 2023.
- HEALWELL achieved a Gross Margin(2) percentage of 44% during 2024 compared to 17% in 2023.
- During fiscal 2024, HEALWELL reported Adjusted EBITDA(1) loss of $16 million, compared to an Adjusted EBITDA loss of $7.9 million in 2023.
Fourth Quarter 2024 Financial Highlights
Significant financial highlights for the Company’s continuing operations during the three months ended December 31, 2024 included:
- Significant financial highlights for the Company’s continuing operations during the three months ended December 31, 2024 included:
- HEALWELL achieved quarterly revenue from continuing operations of $15.2 million in Q4-2024, an increase of 692% compared to revenue of $1.9 million generated in Q4-2023. The growth in revenue is primarily attributable acquisitions, including Pentavere Research Group (“Pentavere“), Intrahealth Systems Limited (“Intrahealth“), BioPharma Services Inc. (“BioPharma“), VeroSource Solutions Inc. (“VeroSource“) and Mutuo Health Solutions Inc. (“Mutuo”). Mutuo .
- HEALWELL achieved Gross Profit(2) of $7.0 million during Q4-2024, an increase of 1,179% compared to $0.54 million in Q4-2023. The increase in Gross Profit is primarily attributed to an increase in revenue from the acquisitions made over the past year.
- HEALWELL achieved a Gross Margin(2) percentage of 46% during Q4-2024, compared to 28% in Q4-2023. The improvement in Gross Margin was also primarily due to the contribution of higher gross margin acquisitions of Intrahealth and VeroSource.
- During Q4-2024, HEALWELL reported an Adjusted EBITDA(1) loss of $5.4 million, compared to loss of $1.5 million in Q4-2023.
- As of December 31, 2024, HEALWELL had $9.4 million in cash, compared to $15.2 million as of September 30, 2024.
Fourth Quarter 2024 Business and Operational Highlights
Significant business and operational highlights for the Company during the three months ended December 31, 2024 included:
- Investment in Abstractive Health to Advance Generative AI-Powered Clinical Documentation: On October 22, 2024, HEALWELL announced a USD$250,000 strategic investment and commercialization agreement with Abstractive Health (“Abstractive Health”), a healthcare AI company specializing in providing physicians with an automated, accurate and medically relevant AI assistant that delivers patient summaries using proprietary generative AI technology.
- Acquisition of Mutuo Health Solutions: On November 1, 2024, HEALWELL acquired a 51% controlling interest in Toronto-based Mutuo for a total purchase price of approximately $5.7 million. Mutuo is a Software-as-a-Service (SaaS) platform that utilizes artificial intelligence to automate medical transcription and note generation for healthcare professionals. The company’s flagship product, AutoScribe, transcribes clinician-patient conversations into accurate medical notes in real time, integrated seamlessly with Electronic Medical Records (EMR) systems such as PS Suite, Oscar EMR, Cerner, and Epic.
- Expansion of Pharmaceutical Partnerships: On November 5, 2024, HEALWELL announced its subsidiaries executed five new Master Services Agreements (MSAs) with pharmaceutical partners, enhancing commercialization opportunities for its AI-powered patient identification solutions.
- Pentavere Receives Prix Galien USA 2024 Award for Best Digital Health Startup: On November 12, 2024, the Company announced Pentavere received the prestigious Prix Galien USA 2024 Award for Best Digital Health Startup for its contributions in AI and Life Sciences. The Prix Galian Award is among the global health innovation industry’s most renowned honors, recognizing outstanding biomedical, medical and technological achievements that improve the human condition.
- VeroSource Solutions Drives Expansion in Canadian Healthcare Sector: On November 27, 2024, HEALWELL’s subsidiary, VeroSource Solutions, reported rapid expansion in Canada’s public healthcare sector. More than 600,000 New Brunswick residents can now generate a Patient Summary via the MyHealthNB platform, powered by VeroSource technology.
- HEALWELL to Acquire Orion Health, Creating a Global Leader in AI-Driven Healthcare: On December 16, 2024, HEAWELL announced that it entered into an agreement to acquire 100% of the shares of Auckland, New Zealand based Orion Health, a subscription license and services revenue business serving marquee public sector clients globally with data interoperability and healthcare navigation products and services. The aggregate purchase price of the transaction is $175 million NZD plus a performance based earnout of up to a further $25 million NZD. On closing, HEALWELL will satisfy the purchase price of $144 million CAD with$86 million CAD in cash and $57.4 million CAD in HEALWELL Class A Subordinate Voting Shares. The acquisition of Orion Health will represent a transformative milestone in HEALWELL’s journey to become a global leader in healthcare technology and artificial intelligence. The transaction is expected to close on April 1, 2025 and remains subject to a limited number of conditions precedent.
- HEALWELL Upsizes Bought Deal Offering to $55 Million: On December 16, 2024 and December 17, 2024, the Company announced that it had entered into (and subsequently amended) a letter agreement to complete a $55.0 million subscription receipt financing, on a bought-deal basis, to support the acquisition of Orion Health (the “Bought-Deal Acquisition Financing”), with Eight Capital and Scotia Capital Inc. acting as joint-bookrunners on behalf of a syndicate of underwriters.
Events Subsequent to December 31, 2024
Significant business and operational highlights for the Company subsequent to December 31, 2024 included:
- Shareholder Approval for Orion Health Acquisition: On January 15, 2025, HEALWELL obtained written shareholder approval for its pending acquisition of Orion Health and related financing. This approval represents a key step in finalizing the acquisition and integrating Orion Health into HEALWELL’s growing AI-driven healthcare ecosystem.
- $25.5M Equity Tranche Completion: On January 21, 2025, HEALWELL announced the closing of the first tranche of its Bought Deal Acquisition Financing, raising aggregate gross proceeds of approximately $25.5 million.
- $30M Convertible Debt Tranche Closure: On January 28, 2025, HEALWELL announced the closing of the second tranche of its Bought Deal Acquisition Financing, raising aggregate gross proceeds of $27.3 million, after considering the OID (Original Issue Discount) on the underlying debentures.
- Strategic Cost Optimization Initiative: On February 3, 2025, HEALWELL provided a corporate update highlighting a cost optimization initiative aimed at streamlining operations and maximizing M&A efficiencies. The Company expects to achieve at least $3.0 million in annual cost savings, reinforcing its commitment to operational excellence.
- Khure Health’s Expansion in AI-Powered Disease Detection: On February 24, 2025, HEALWELL’s Khure Health reported a significant acceleration in user adoption and partnerships in its AI-powered co-pilots for disease detection. In Q4 2024 alone, Khure Health assisted physicians in identifying over 43,000 high-risk patients, further strengthening its impact on preventive care and physician support.
- $50M Credit Agreement Led by Scotiabank and RBC to Support Orion Acquisition: On February 26, 2025, HEALWELL announced the signing of a $50 million credit agreement, led by Scotiabank and RBC, to support its acquisition of Orion Health. The financing includes a $20 million term loan and a $30 million revolving credit facility, with an additional uncommitted accordion feature of up to $25 million. Combined with recent capital raises, HEALWELL has secured over $100 million in funding for the transaction. The Company has initiated the pre-closing reorganization process with a target closing date of April 1, 2025, marking a significant step in expanding its global healthcare intelligence platform.
HEALWELL AI Fourth Quarter and Year End 2024 Financial Results Conference Call
HEALWELL will be holding a conference call and simultaneous webcast to discuss its financial results on Wednesday, March 26, 2025 at 1:00 pm ET (10:00 am 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: Wednesday March 26, 2025
Time: 1:00 PM ET / 10:00 AM PT
Webcast link: https://www.gowebcasting.com/13983
Toll-Free North America: 1-833-752-3509
International Toll: 1-647-846-7993
When connecting to the conference call via phone, please dial in 10 minutes prior to the start of the call and ask to join the “HEALWELL AI Inc. Conference Call.”
HEALWELL AI INC. (formerly known as MCI ONEHEALTH TECHNOLOGIES INC.)
|
Consolidated Statement of Financial Position |
|
|
|
|
|
|||||||||||||||
|
(In thousands of Canadian dollars, except per share amounts) |
|
|
|
|
|
|||||||||||||||
|
As at 31 December 2024 and 2023 |
|
|
|
|
|
|||||||||||||||
|
|
(unaudited)
|
|
|
December 31, |
|
December 31, 2023 |
||||||||||||||
|
Assets |
|
|
|
|
|
|||||||||||||||
|
Current assets |
|
|
|
|
|
|||||||||||||||
|
|
Cash and cash equivalents |
|
|
9,413 |
|
19,162 |
||||||||||||||
|
|
Accounts receivable |
|
|
5,969 |
|
1,115 |
||||||||||||||
|
|
Contract assets |
|
|
326 |
|
– |
||||||||||||||
|
|
Prepaid and other assets |
|
|
2,351 |
|
1,203 |
||||||||||||||
|
|
Lease receivables |
|
|
269 |
|
126 |
||||||||||||||
|
|
|
|
|
18,327 |
|
21,606 |
||||||||||||||
|
|
Assets classified as held for sale |
|
|
– |
|
1,150 |
||||||||||||||
|
|
|
|
18,327 |
|
22,756 |
|||||||||||||||
|
Non-current assets |
|
|
|
|
|
|||||||||||||||
|
|
Property and equipment |
|
|
793 |
|
531 |
||||||||||||||
|
|
Intangible assets |
|
|
28,303 |
|
12,506 |
||||||||||||||
|
|
Right-of-use assets |
|
|
4,122 |
|
3,202 |
||||||||||||||
|
|
Goodwill |
|
|
65,601 |
|
12,305 |
||||||||||||||
|
|
Investment in equity securities |
|
|
4,114 |
|
410 |
||||||||||||||
|
|
Call option and warrants |
|
|
2,251 |
|
1,500 |
||||||||||||||
|
|
Other assets |
|
|
115 |
|
237 |
||||||||||||||
|
|
Lease receivables |
|
|
366 |
|
249 |
||||||||||||||
|
|
|
|
123,992 |
|
53,696 |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||
|
Liabilities |
|
|
|
|
|
|||||||||||||||
|
Current liabilities |
|
|
|
|
|
|||||||||||||||
|
|
Accounts payable and accrued liabilities |
|
|
9,605 |
|
5,978 |
||||||||||||||
|
|
Acquisition related payables |
|
|
6,596 |
|
443 |
||||||||||||||
|
|
Deferred revenue |
|
|
2,453 |
|
335 |
||||||||||||||
|
|
Related party loan-current |
|
|
1,780 |
|
672 |
||||||||||||||
|
|
Contingent consideration |
|
|
1,391 |
|
– |
||||||||||||||
|
|
Other liabilities |
|
|
– |
|
86 |
||||||||||||||
|
|
Lease liability |
|
|
946 |
|
1,010 |
||||||||||||||
|
|
Liabilities associated with assets classified as held for sale |
|
|
– |
|
897 |
||||||||||||||
|
|
|
|
22,771 |
|
9,421 |
|||||||||||||||
|
Long-term liabilities |
|
|
|
|
|
|||||||||||||||
|
|
Lease liability |
|
|
5,237 |
|
4,264 |
||||||||||||||
|
|
Related party loan |
|
|
9,478 |
|
10,508 |
||||||||||||||
|
|
Deferred tax liabilities |
|
|
5,250 |
|
2,024 |
||||||||||||||
|
|
Contingent consideration |
|
|
3,351 |
|
260 |
||||||||||||||
|
|
Non-controlling interest redeemable liability |
|
|
– |
|
1,282 |
||||||||||||||
|
|
Debentures payable |
|
|
2,970 |
|
2,932 |
||||||||||||||
|
|
Loan payable |
|
|
1,792 |
|
1,541 |
||||||||||||||
|
|
|
|
50,849 |
|
32,232 |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||
|
Shareholders’ equity |
|
|
|
|
|
|||||||||||||||
|
|
Share capital |
|
|
140,388 |
|
67,368 |
||||||||||||||
|
|
Convertible debenture options reserve |
|
|
1,733 |
|
1,964 |
||||||||||||||
|
|
Contributed surplus |
|
|
16,987 |
|
12,567 |
||||||||||||||
|
|
Translation reserve |
|
|
(3) |
|
– |
||||||||||||||
|
|
Deficit |
|
|
(94,389) |
|
(69,249) |
||||||||||||||
|
|
Equity attributable to HEALWELL AI Inc. |
|
|
64,716 |
|
12,650 |
||||||||||||||
|
|
Non-controlling interest |
|
|
8,675 |
|
8,814 |
||||||||||||||
|
|
|
|
73,391 |
|
21,464 |
|||||||||||||||
|
|
|
|
123,992 |
|
53,696 |
|||||||||||||||
|
HEALWELL AI INC. (formerly known as MCI ONEHEALTH TECHNOLOGIES INC.) |
||||||||||||||||||||
|
Consolidated Statement of Profit (Loss) and Comprehensive Income (Loss) |
||||||||||||||||||||
|
(In thousands of Canadian dollars, except per share amounts) |
||||||||||||||||||||
|
For the years ended 31 December 2024 and 2023 |
||||||||||||||||||||
|
HEALWELL AI INC. (formerly known as MCI ONEHEALTH TECHNOLOGIES INC.) |
||||||||||||
|
Consolidated Statement of Profit (Loss) and Comprehensive Income (Loss) |
||||||||||||
|
(In thousands of Canadian dollars, except per share amounts) |
||||||||||||
|
For the years ended 31 December 2024 and 2023 |
||||||||||||
|
|
|
December 31, |
|
|||||||||
|
(unaudited) |
|
|
2024 |
2023 |
|
|||||||
|
Continuing operations |
|
|
|
|||||||||
|
Revenue |
|
|
38,972 |
|
7,317 |
|
||||||
|
Total revenue |
|
|
38,972 |
|
7,317 |
|
||||||
|
Cost of revenue |
|
|
21,657 |
|
6060 |
|
||||||
|
Gross profit |
|
|
17,315 |
|
1,257 |
|
||||||
|
|
|
|
|
|
|
|||||||
|
Expenses |
|
|
|
|
|
|
||||||
|
General and administrative |
|
|
42,694 |
|
1,088 |
|
||||||
|
Research and development |
|
|
|
|
|
|
|
|
5,795 |
|
4,811 |
|
|
Sales and marketing |
|
|
2,381 |
|
1,280 |
|
||||||
|
Impairment charges |
|
|
|
|
|
|
|
|
5,385 |
|
10,896 |
|
|
Operating expenses |
|
|
56,255 |
|
28,971 |
|
||||||
|
|
|
|
|
|
|
|||||||
|
Loss before other expense (income) and taxes |
|
|
(38,940) |
|
(27,714) |
|
||||||
|
|
|
|
|
|
|
|||||||
|
Financing expenses |
|
|
|
|
|
|
|
|
1,972 |
|
1,755 |
|
|
Changes in fair value of call options |
|
|
|
|
|
|
|
|
950 |
|
– |
|
|
Changes in fair value of contingent consideration |
|
|
|
|
|
|
|
|
(2,580) |
|
223 |
|
|
Changes in fair value of investments |
|
|
|
|
|
|
|
|
(277) |
|
134 |
|
|
Loss on settlement of shares-contingent consideration |
|
|
|
|
|
|
|
|
– |
|
677 |
|
|
Loss on fixed assets write off |
|
|
|
|
|
|
|
|
228 |
|
– |
|
|
Debt forgiveness |
|
|
|
|
|
|
|
|
(7,863) |
|
– |
|
|
Liability extinguishment |
|
|
|
|
|
|
|
|
(3,088) |
|
– |
|
|
Impairment of investment in an associate |
|
|
|
|
|
|
|
|
– |
|
2,180 |
|
|
|
|
(10,658) |
|
4,969 |
|
|||||||
|
Loss before taxes from continuing operations |
|
|
(28,282) |
|
(32,683) |
|
||||||
|
Income taxes recovery |
|
|
(1,685) |
|
(542) |
|
||||||
|
Net loss for the period on continuing operations, net of tax |
|
|
|
|
|
|
|
|
(26,597) |
|
(32,141) |
|
|
Net (loss) profit on discontinued operations, net of tax |
|
|
|
|
|
|
|
|
(54) |
|
596 |
|
|
Net loss for the period |
|
(26,651) |
|
(31,545) |
|
|||||||
|
|
|
|
|
|
||||||||
|
Other Comprehensive Expense |
|
|
|
|
|
|||||||
|
Foreign currency translation of foreign operations |
|
(3) |
|
– |
|
|||||||
|
Net comprehensive loss for the period |
|
(26,654) |
|
(31,545) |
|
|||||||
|
|
|
|
|
|
||||||||
|
Net (loss)/profit attributed to |
|
|
|
|
|
|||||||
|
Non-controlling interests |
|
(1,187) |
|
52 |
|
|||||||
|
Shareholders of HEALWELL AI Inc. |
|
|
|
|
|
|
|
|
(25,464) |
|
(31,597) |
|
|
|
|
|
|
|
|
|
|
|
(26,651) |
|
(31,545) |
|
|
Net comprehensive (loss) earnings attributable to |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling interests |
|
(1,187) |
|
52 |
|
|||||||
|
Shareholders of HEALWELL AI Inc. |
|
(25,467) |
|
(31,597) |
|
|||||||
|
|
(26,654) |
|
(31,545) |
|
||||||||
|
Loss per share attributable to HEALWELL AI Inc. |
|
|
|
|
|
|||||||
|
Basic and diluted – Continuing operations |
|
(0.19) |
|
(0.56) |
|
|||||||
|
Basic and diluted – Discontinued operations |
|
|
|
|
|
|
|
|
(0.00) |
|
0.01 |
|
|
Basic and diluted -Continuing & discontinued operations |
|
(0.19) |
|
(0.55) |
|
|||||||
HEALWELL AI INC. (formerly known as MCI ONEHEALTH TECHNOLOGIES INC.)
Consolidated Statement of Cash Flows
(In thousands of Canadian dollars, except per share amounts)
For the years ended 31 December 2024
|
December 31, |
|||||||||
|
(unaudited) |
2024 |
2023 |
|
||||||
|
Operating activities: |
|
||||||||
|
Net loss and comprehensive loss for the period |
(26,651) |
|
($ 31,545) |
|
|||||
|
Items not affecting cash: |
|
|
|
||||||
|
Depreciation and amortization |
7,297 |
|
3,341 |
|
|||||
|
Deferred tax recovery |
(2,042) |
|
(561) |
|
|||||
|
Non-cash interest accreted income |
(43) |
|
(15) |
|
|||||
|
Non-cash interest accreted expense |
186 |
|
149 |
|
|||||
|
Share based compensation |
5,741 |
|
3,261 |
|
|||||
|
Expected credit losses |
12 |
|
11 |
|
|||||
|
Fair value changes in contingent consideration |
(2,580) |
|
223 |
|
|||||
|
Loss on settlement of shares-contingent consideration |
– |
|
677 |
|
|||||
|
Impairment on intangible |
– |
|
10,896 |
|
|||||
|
Impairment |
|
|
|
5,363 |
|
– |
|||
|
Changes in fair value of investments |
149 |
|
134 |
|
|||||
|
Changes in fair value of call options |
949 |
|
– |
|
|||||
|
Interest on related party loan |
650 |
|
1,127 |
|
|||||
|
Assets written off |
258 |
|
– |
|
|||||
|
Interest on bank loan |
39 |
|
– |
|
|||||
|
Debt forgiveness |
(7,863) |
|
(370) |
|
|||||
|
Liability extinguishment |
(3,088) |
|
– |
|
|||||
|
Impairment on investments in associates |
– |
|
2,180 |
|
|||||
|
Non-cash operating items: |
(21,623) |
|
(10,492) |
|
|||||
|
Net Change in non-cash operating items: |
(3,443) |
|
1,066 |
|
|||||
|
Net cash flows used in operating activities from continuing operations |
(25,066) |
|
(9,426) |
|
|||||
|
Net cash flows generated in operating activities from discontinued operations |
21 |
|
(1,372) |
|
|||||
|
Net cash flows used in operating activities |
(25,045) |
|
(10,798) |
|
|||||
|
Investing activities |
|
|
|
|
|||||
|
Acquisition of subsidiaries, net of cash acquired |
(10,634) |
|
(1,143) |
|
|||||
|
Proceeds from sale of Ontario clinics and subsidiary |
– |
|
2,035 |
|
|||||
|
Investment in equity securities |
(3,704) |
|
(410) |
|
|||||
|
Net cash inflow on disposal of subsidiary |
– |
|
1,000 |
|
|||||
|
Dividend received |
– |
|
100 |
|
|||||
|
Purchase of intangible assets |
|
|
|
(1,220) |
|
– |
|
||
|
Purchase of property and equipment |
(91) |
|
(66) |
|
|||||
|
Net cash flows (used in) generated from investing activities from continuing operations |
(15,649) |
|
1,516 |
|
|||||
|
Net cash flows used in investing activities from discontinued operations |
– |
|
(62) |
|
|||||
|
Net cash flows (used in) generated from investing activities |
(15,649) |
|
1,454 |
|
|||||
|
Financing activities |
|
|
|
|
|||||
|
Advances from related parties-net |
1,839 |
|
3,270 |
|
|||||
|
Proceeds from the issuance of shares |
|
|
19,119 |
|
– |
|
|||
|
Buyback of Polyclinic NCI Shares |
|
|
|
(625) |
|
– |
|
||
|
Proceeds from issuance of shares and warrants |
9,876 |
|
17,447 |
|
|||||
|
Proceeds from issuance of debenture and warrants, net of expenses |
|
|
– |
|
9,810 |
|
|||
|
Proceeds from issuance of shares against settlement of RSUs |
|
|
1,667 |
|
– |
||||
|
Repayment of bank loan |
– |
|
(1,685) |
|
|||||
|
Lease payments |
|
|
(1,168) |
|
(576) |
|
|||
|
Lease payments received |
|
237 |
|
168 |
|
||||
|
Net cash flows from financing activities from continuing operations |
30,945 |
|
28,534 |
|
|||||
|
Net cash flows used in financing activities from discontinued operations |
– |
|
(1,339) |
|
|||||
|
Net cash flows from financing activities |
30,945 |
|
27,095 |
|
|||||
|
Net (decrease) increase in cash and cash equivalents |
(9,749) |
|
17,751 |
|
|||||
|
Cash and cash equivalent at beginning of the period |
19,162 |
|
1,411 |
|
|||||
|
Cash and cash equivalent at ending of the period |
9,413 |
|
19,162 |
|
|||||
Selected Financial Information
(in thousands of dollars, except percentages and per share amounts)
|
(unaudited)
|
Three months ended |
Period over |
Year ended |
Period over |
||||||
|
|
December 31 |
period Change |
December 31 |
period Change |
||||||
|
|
2024 |
2023(2) |
$ |
% |
2024 |
2023(2) |
$ |
% |
||
|
|
($ in thousands except percentages) |
|||||||||
|
Continuing operations |
|
|
|
|
|
|
|
|
||
|
Revenues |
15,211 |
1,921 |
13,290 |
692 |
38,972 |
7,317 |
31,655 |
433 |
||
|
Cost of revenue |
8,253 |
1,377 |
6,876 |
499 |
21,657 |
6,060 |
15,597 |
257 |
||
|
Gross profit |
6,958 |
544 |
6,414 |
1,179 |
17,315 |
1,257 |
16,058 |
1,277 |
||
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
||
|
Research and development General and administrative |
2,849 |
282 |
2,567 |
912 |
5,795 |
632 |
5,163 |
817 |
||
|
Sales and marketing General and administrative |
721 |
207 |
514 |
248 |
2,381 |
600 |
1,781 |
297 |
||
|
General and administrative |
13,874 |
3,941 |
9,933 |
252 |
42,716 |
16,842 |
25,874 |
154 |
||
|
Impairment charges |
4,513 |
3,143 |
1,370 |
44 |
5,363 |
10,896 |
(5,533) |
(51) |
||
|
|
21,957 |
7,573 |
14,384 |
1,455 |
56,255 |
28,971 |
27,285 |
1,217 |
||
|
|
|
|
|
|
|
|
|
|
||
|
Finance expenses |
448 448 |
615 |
(167) |
(27) |
1,972 |
1,755 |
217 |
2 |
||
|
Changes in fair value of call options |
50 |
– |
50 |
– |
950 |
– |
950 |
– |
||
|
Changes in fair value of contingent consideration |
(2,730) |
(1,537) |
(1,156) |
75 |
(2,580) |
223 |
(2,803) |
(1,257) |
||
|
Changes in fair value of investments |
(277) |
– |
(277) |
– |
(277) |
134 |
(411) |
(307) |
||
|
Loss on settlement of shares-contingent consideration |
– |
– |
– |
– |
– |
677 |
(677) |
(100) |
||
|
Loss on fixed assets write off |
– |
– |
– |
– |
228 |
– |
228 |
– |
||
|
Debt forgiveness |
– |
– |
– |
– |
(7,863) |
– |
(7,863) |
– |
||
|
Liability extinguishment |
– |
– |
– |
– |
(3,088) |
– |
(3,088) |
– |
||
|
Impairment of investment in an associate |
– |
– |
– |
– |
– |
2,180 |
(2,180) |
(100) |
||
|
|
2,509 |
(922) |
(1,587) |
172 |
(10,658) |
4,969 |
(15,627) |
(314) |
||
|
|
|
|
|
|
|
|
|
|
||
|
Loss before taxes |
(12,490) |
(6,107) |
(6,383) |
105 |
(28,282) |
(32,683) |
4,401 |
(13) |
||
|
Income tax recovery |
(687) |
652 |
(1,339) |
(205) |
(1,685) |
(542) |
(1,143) |
211 |
||
|
|
|
|
|
|
|
|
|
|
||
|
Net loss-continuing operation |
(11,803) |
(6,759) |
(5,044) |
75 |
(26,597) |
(32,141) |
5,544 |
(17) |
||
|
|
|
|
|
|
|
|
|
|
||
|
Net (income)/loss on discontinued operations, net of tax |
– |
– |
– |
– |
(54) |
596 |
(650) |
(109) |
||
|
|
|
|
|
|
|
|
|
|
||
|
Net loss |
(11,803) |
(6,759) |
(5,044) |
75 |
(26,651) |
(31,545) |
4,894 |
(16) |
||
|
|
|
|
|
|
|
|
|
|
||
|
Continuing operation |
|
|
|
|
|
|
|
|
||
|
Adjusted EBITDA (1) |
(5,470) |
(1,464) |
(4,006) |
274 |
(16,003) |
(7,954) |
(8,049) |
101 |
||
|
Adjusted EBITDA margin (1) |
(36.0) |
(76.2) |
40.2 |
(52.8) |
(41.1) |
(108.7) |
67.6 |
(62.2) |
||
|
|
|
|
|
|
|
|
|
|
||
|
Discontinued operation |
|
|
|
|
|
|
|
|
||
|
Adjusted EBITDA (1) |
– |
112 |
(112) |
(100) |
(21) |
(297) |
276 |
(93) |
||
|
Adjusted EBITDA margin (1) |
– |
22.6 |
(22.6) |
(100) |
(4.4) |
(1.2) |
(3.2) |
270.3 |
||
|
|
|
|
|
|
|
|
|
|
||
|
Net (loss) attributable to Company shareholders |
|
|
|
|
|
|
|
|
||
|
– Continuing operation |
(12,368) |
(6,759) |
(5,609) (5,609) |
83 |
(25,410) |
(32,193) |
6,783 |
(21) |
||
|
– Discontinued operation |
– |
– |
– |
– |
(54) |
596 |
(650) |
(109) |
||
|
|
(12,368) |
(6,759) |
(5,609) |
83 |
(25,464) |
(31,597) |
6,133 |
(19) |
||
|
Weighted average number of |
|
|
|
|
|
|
|
|
||
|
Of Share outstanding: Basic and diluted |
53,728 |
68,312 |
|
|
135,561 |
57,032 |
|
|
||
|
|
|
|
|
|
|
|
|
|
||
|
Net income (loss) per share -Basic and diluted |
|
|
|
|
|
|
|
|
||
|
– Continuing operation |
(0.23) |
(0.10) |
|
|
(0.19) |
(0.56) |
|
|
||
|
– Discontinued operation |
– |
– |
|
|
(0.0004) |
0.01 |
|
|
||
|
|
(0.23) |
(0.10) |
|
|
(0.19) |
(0.55) |
|
|
||
(1) 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.
(2) Certain Financial Statement Line Items on the 2023 Profit and Loss Statement have been re-classified to conform to the methodology used to prepare the 2024 Profit and Loss statement.
Selected Statement of Financial Position Data
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 and year ended December 31, 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.
The following table reconciles Adjusted EBITDA and Adjusted EBITDA Margin to net income (loss) for the three-months and fiscal year ended December 31, 2024 and December 31, 2023:
|
|
Three months ended |
Year ended |
|||
|
|
December 31 |
December 31 |
|||
|
|
2024 |
2023 |
2024 |
2023 |
|
|
|
$ in thousands |
||||
|
Total Revenue |
|
|
|
|
|
|
– Continuing operation |
15,211 |
1,921 |
38,972 |
7,317 |
|
|
– Discontinued operation |
– |
495 |
477 |
24,979 |
|
|
|
15,211 |
2,416 |
39,449 |
32,296 |
|
|
Net (loss) income |
|
|
|
|
|
|
– Continuing operation |
(11,803) |
(6,759) |
(26,597) |
(32,141) |
|
|
– Discontinued operation |
– |
448 |
(54) |
596 |
|
|
|
(11,803) |
(6,311) |
(26,651) |
(31,545) |
|
|
Add back (deduct) |
|
|
|
|
|
|
Continuing operation |
|
|
|
|
|
|
Depreciation and amortization |
1,202 |
1,150 |
7,298 |
3,341 |
|
|
Net finance charges |
448 |
615 |
1,972 |
1,755 |
|
|
Other Expenses |
103 |
– |
– |
– |
|
|
Restructuring cost |
75 |
– |
652 |
– |
|
|
Gain /(Loss) on settlement of shares-contingent consideration |
– |
– |
– |
677 |
|
|
Impairment of investment in associate |
– |
– |
– |
2,180 |
|
|
Changes in fair value of call options |
50 |
– |
950 |
– |
|
|
Changes in fair value of contingent consideration |
(2,730) |
(1,537) |
(2,580) |
223 |
|
|
Changes in fair value of investments |
(277) |
– |
(277) |
134 |
|
|
Share-based payment expense |
2,721 |
743 |
7,141 |
3,261 |
|
|
Acquisition related expenses |
893 |
529 |
2,462 |
2,272 |
|
|
Expected credit losses (recovery) |
– |
– |
– |
(11) |
|
|
Income taxes recovery (expense) |
(687) |
652 |
(1,685) |
(542) |
|
|
Liability extinguishment |
– |
– |
(3,088) |
– |
|
|
Debt forgiveness |
– |
– |
(7,863) |
– |
|
|
Impairment charges |
4,535 |
3,143 |
5,385 |
10,896 |
|
|
Loss / (Gain) on disposal of assets |
– |
– |
228 |
– |
|
|
Discontinued operation |
|
|
|
|
|
|
Depreciation and amortization |
– |
117 |
2 |
1,312 |
|
|
Net finance charges |
– |
15 |
19 |
309 |
|
|
Impairment charges (reversal) |
– |
75 |
– |
221 |
|
|
Loss (gain) on disposal of subsidiary |
– |
(543) |
– |
(2,560) |
|
|
Expected credit recovery |
– |
– |
12 |
(175) |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
|
|
|
|
|
– Continuing operation |
(5,407) |
(1,464) |
(16,003) |
(7,954) |
|
|
– Discontinued operation |
– |
112 |
(21) |
(297) |
|
|
Adjusted EBITDA Margin |
|
|
|
|
|
|
– Continuing operation |
(35.55) |
(76.20) |
(41.6) |
(108.7) |
|
|
– Discontinued operation |
– |
22.63 |
(4.4) |
(1.19) |
|
|
|
($ in thousands except percentages) |
|||||||
|
|
Three months ended December 31 |
|||||||
|
(unaudited) |
2024 |
2023 |
Period over Change |
|||||
|
|
Continuing operation |
Discontinued operation |
Total |
Continuing operation |
Discontinued operation |
Total |
$ |
% |
|
|
|
|
|
|
|
|
||
|
AI and Data sciences |
1,932 |
– |
1,932 |
53 |
– |
53 |
1,879 |
3,646.0 |
|
Healthcare Software |
4,863 |
– |
4,863 |
– |
– |
– |
4,863 |
100.0 |
|
Clinical Research and Patient services |
8,416 |
– |
8,416 |
1,868 |
496 |
2,364 |
6,052 |
256.0 |
|
|
15,211 |
– |
15,211 |
1,921 |
496 |
2,417 |
12,794 |
529.3 |
|
|
($ in thousands except percentages) |
|||||||
|
|
Twelve months ended December 31 |
|||||||
|
(unaudited) |
2024 |
2023 |
Period over Change |
|||||
|
|
Continuing operation |
Discontinued operation |
Total |
Continuing operation |
Discontinued operation |
Total |
$ |
% |
|
|
|
|
|
|
|
|||
|
AI and Data sciences |
4,610 |
– |
4,610 |
670 |
– |
670 |
3,940 |
588.1 |
|
Healthcare Software |
15,102 |
– |
15,102 |
– |
– |
– |
15,102 |
100.0 |
|
Clinical Research and Patient services |
19,260 |
477 |
19,737 |
6,647 |
24,978 |
31,625 |
(11,888) |
(37.6) |
|
|
38,972 |
477 |
39,449 |
7,317.00 |
24,978 |
32,295 |
7,154 |
22.2 |
Dr. Alexander Dobranowski
Chief Executive Officer
HEALWELL AI Inc.
HEALWELL is a healthcare artificial intelligence company focused on preventative care. Its mission is to improve healthcare and save lives through early identification and detection of disease. Using its own proprietary technology, 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 executing a strategy centered around developing and acquiring technology and clinical sciences capabilities that complement the Company’s road map. 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 https://healwell.ai/.
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, including statements about the potential for HEALWELL and its partners to continually leverage advancements in expert AI technologies to develop new products and services or enhance existing ones to serve its existing (and future) customer base, and are based on assumptions, expectations, estimates and projections as of the date of this press release. Forward-looking statements are often, but not always, identified by words or phrases such as “possibility”, “opportunity”, “pending”, “proposition”, “continue to”, “improve” 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” be taken, occur or be achieved, or the negative of any of these terms . 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 HEALWELL as of the date of such statements, are outside of HEALWELL’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: HEALWELL’s ability to maintain and leverage is relationships with its commercial partners; the continued adoption of the software, tools and solutions created by HEALWELL; that HEALWELL will be successful in identifying, executing and integrating new acquisitions, investments and/or partnerships, the stability of general economic and market conditions; sufficiency of working capital and access to financing; HEALWELL’s ability to comply with applicable laws and regulations; HEALWELL’s continued compliance with third party intellectual property rights; the effects of competition in the industry; the requirement for increasingly innovative product solutions and service offerings; technologies working as intended or at all; trends in customer growth and the adoption of new technologies in the industry; and that the risk factors noted below, collectively, do not have a material impact on HEALWELL’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.
Known and unknown risk factors, many of which are beyond the control of HEALWELL, could cause the actual results of HEALWELL 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 HEALWELL’s most recent annual information form dated April 1, 2024, which is available under HEALWELL’s SEDAR+ profile at www.sedarplus.ca. The risk factors are not intended to represent a complete list of the factors that could affect HEALWELL 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. HEALWELL 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