We recently drank Guinness at Joey’s in Vancouver with a veteran merchant banker.
Trying to establish the legitimacy of a business plan, we proudly declared, “It’s not sizzle – it’s steak!”
The merchant banker stared at us with dumbfounded pity.
“It’s easier to sell sizzle,” he said.
And so it is with the blockchain sector.
A lot of vapour (story-telling) – not much protein (sales).
But then there’s VitalHub (VHI.V) – a carnivorous tech company that continues to load raw meat onto the BBQ.
VHI marries medical information networks with blockchain technology. The company’s robust two-pronged growth strategy, targets growth opportunities within its product suite while pursuing an aggressive M&A plan.
Financial highlights for last quarter included revenue of $2,923,390, representing an increase of 2172.3% over the same period last year.
Despite an orgy of deals, in the last six months VHI stock price has pulled back with the rest of the blockchain sector.
On August 21, 2018 VHI announced the sale of the TREAT EHR solution to a Toronto-based young adult mental health agency.
TREAT will replace the existing documentation, supporting the facility’s programming and reporting needs.
TREAT will capture the participant’s demographic and clinical data in standard modules; progress notes, assessments and interdisciplinary care plans.
“This sale of TREAT serves as further evidence of our leadership position supporting Ontario’s mental health providers,” stated Dan Matlow, CEO of VitalHub. “We aim to establish VitalHub as the dominant provider of EHR solutions for mental health providers.”
The TREAT sale follows VHI’s July 31, 2018 sale of the B Care Electronic Health Record to support William Osler Health System’s Cardiac Care Program.
“B Care”, is a flexible web-based solution tailored to specific client requirements, providing an ability to leverage existing processes and workflow.
The B Care platform overcomes the limitations of paper-based records and provides clinicians with productivity gains – enabling faster access to patient records while eliminating the shuffling of paper records between clinics. This allows physicians to spend more time with patients.
The Osler hospital system serves 1.3 million residents.
Two weeks earlier on July 17, 2018 VHI announced the sale of VH LTC solution to a 263-bed long term care facility located in the Stanley Park area of Kitchener.
The VH LTC solution is designed specifically for Long-Term Care and retirement living, streamlining the way frontline staff access information about their Long-Term Care residents.
The solution enables front line clinicians to become mobile, providing fingertip access to what used to be manual paper forms, schedules, task lists, etc.
VH LTC integrates smartphone and tablet technology into clinical workflow, creating the ability to document and record critical resident information at the point of care, and enabling the automated transition of care and workflow management, observation tracking, interdisciplinary communication and team collaboration.
The Province of Ontario has an annual Long-Term Care spend of $4.07 billion, attributed across 77,541 long-stay beds.
On June 19, 2018 VHI announced two sales of its VH LTC solution.
The first sale was completed with Saint Luke’s Place, a seniors’ residential facility located in Cambridge, Ontario, operating 114 Long-Term Care beds.
The second sale was completed with Golden Dawn Senior Citizens’ Home, dedicated to the care of the elderly.
Golden Dawn operates a Long-Term Care Facility and Senior Citizen Apartment complex located in Lion’s Head, Ontario, and has 45 Long-Term Care beds.
Q1, 2018 Consolidated Financial Statements revealed the following highlights:
- Acquisition of H.I. Next, which has historical unaudited revenues of $2.695 million, $3.329 million and $3.572 million for 2015, 2016 and 2017.
- Acquisition of Clarity, with $200,000 in revenue in its last fiscal year.
- Royalty-free license sale to a customer of HI Next software.
- $1,613,362 of perpetual license fees and $58,015 of services revenue, with the remaining balance of $1,719,499 in deferred revenue.
- Introduction of WellLinc, a proprietary electronic health record interoperability solution powered by blockchain technology.
- 16 new customers in New York State, through the Behavioral Health Information Technology Grant Program.
- Licensed B Care Electronic Health Record software to Manitoba’s Northern Regional Hospital
- Additional contracts in the quarter including: Bluewater Health, ON, Canada; HKS Counselling Services, ON, Canada; United Chiefs and Councils of Mnidoo Mnising, ON, Canada; Alzheimer’s Society of Toronto, ON, Canada; and Stella’s Place, ON, Canada.
- Revenue of $2,923,390, representing an increase of 2172.3% over the same period last year.
According to Canadian Centre for Addiction and Mental Health, the economic burden of mental illness in Canada is estimated at $51 billion per year, including health care costs and lost productivity.
There is a general need to digitize medical records. With the mentally ill, that need is more pressing because the patients are less capable of summarizing their own clinical histories.
With the August 21, 2018 sale of the TREAT EHR solution to the young adult mental health agency, VHI has planted a flag in this gigantic market.
That’s not sizzle.
Full Disclosure: VitalHub is an Equity Guru marking client, we also own stock.