TORONTO, ON / ACCESSWIRE / May 3, 2022 / Highmark Interactive Inc. (TSX.V:HMRK) ("Highmark"), a global leader in digital health technologies, today reported its fiscal year end results for the three and twelve months ended December 31, 2021. All results are reported under International Financial Reporting Standards ("IFRS") and in Canadian dollars, unless otherwise specified.
Key Highlights and Developments During Fiscal Fourth Quarter 2021
The Qualifying Transaction was completed on November 11, 2021 by way of a three-cornered amalgamation, pursuant to which Subco amalgamated with Highmark Innovation Inc ("Highmark Innovations") and the Company, which now holds the assets of Highmark Innovations as a wholly-owned subsidiary, changed its name to Highmark Interactive Inc. Immediately prior to the close of the Qualifying Transaction, the Company consolidated its common shares on a 6 to 1 basis (the "Share Consolidation"). The Corporation issued securities of the Corporation in exchange for securities of Highmark Innovations. Pursuant to the Qualifying Transaction, each Highmark shareholder received 1.40235 common shares in the capital of the Corporation for each outstanding Highmark common share. Upon the close of the Qualifying Transaction, the Company successfully became listed on Tier 1 of the TSX Venture Exchange under the symbol "HMRK".
Concurrently with and as a component of the Qualifying Transaction, the Corporation completed the acquisitions of Complex Injury Rehab Inc. ("Complex Injury") and Highmark Health Mississauga Inc. ("Highmark Health"). Complex Injury is a community-based multidisciplinary rehabilitation clinic focused on providing integrated specialty care to patients with a variety of injuries, with a specific focus on neurological or complex injuries. Highmark Health is a community-based multidisciplinary healthcare clinic focused on providing integrated specialty care to patients with a variety of injuries, with a principal focus on patients who had suffered traumatic brain injury with a significant emphasis on the use of medical device technology. Highmark Health and Complex Injury will continue to operate as the clinical healthcare segment offering expert clinical services and unique digital technologies to augment clinical care for better patient outcomes.
On October 5, 2021 Highmark announced the collaboration of BrainFx, a wholly-owned subsidiary, and Mayo Clinic to assess the impact of "Long COVID" or "Post-COVID-19 Syndrome" on cognitive function. The teams will leverage the medical expertise of Mayo Clinic Drs. Vanichkachorn and Cowl and Highmark's BrainFx Virtual Cognitive Assessment platform to develop and pilot the COVID-19 Cognitive Recovery Tracker™ (CCRT) first within Mayo Clinic sites and then expand the pilot nationally.
On December 3, 2021 Highmark announced that Ball State University selected Highmark's EQ Elite brain and mental health performance platform for their athletic departments after a formal Request For Proposal (RFP) process. Further demonstrating Highmark's momentum in NCAA schools moving to Highmark's EQ platform, The Company announced the State University of New York ("SUNY") at Albany recently shifted away from its long-standing incumbent to begin deployment of Highmark's EQ Elite Platform across all of their men's and women's fall sport programs.
On December 14, 2021 Highmark announced the addition of the Ottawa University Gee Gees and NAIT Ooks to the growing number of institutions that have selected EQ Elite to ensure the health, safety and performance of its students. The Gee Gees have deployed the EQ Platform across its Men's football program with a commitment to add additional programs in 2022 and the Ooks have expanded EQ Elite across all student athletes involved in collision sport.
By fusing proprietary, digital clinical decision support technology with virtual and traditional models of health service, Highmark is committed to delivering better outcomes for people struggling with their brain or mental health.
Dr. Sanjeev Sharma, CEO of Highmark, noted, "2021 was a transformative year for Highmark. We completed 3 acquisitions and a financing before going public on the TSXV. We're building a world class technology platform that will generate improved patient outcomes. We will continue to structure significant channel partnerships to facilitate deployment of our technology through the US market. In addition, the fusion of our hybrid clinical model will position Highmark to deliver new models of care within the domestic market. We are grateful to all of our stakeholders for their ongoing support. We are excited to deploy disruptive technology, enabling continued growth of the business over the coming year."
Subsequent Developments
On February 3, 2022 Highmark announced the roll-out of its EQ Remote Monitoring solution to US Orthopedic Alliance ("USOA"), an organization committed to delivering robust health information technologies and practice management resources to orthopedic-specific group practices, ambulatory surgery centers and specialty surgery hospitals. The EQ Remote Monitoring platform will enable the physician to monitor a patient before and after surgery and between clinical visits to inform and personalize the patient's treatment plan. Remote physiologic monitoring is a recently added reimbursement code by Medicare in the United States. It enables physicians to add remote monitoring to their services to improve patient outcomes. The Highmark EQ Remote Monitoring platform is a mobile application downloaded to a patient's smart device.
Financial Highlights
The 2021 financial results include the results of BrainFx Inc. for the period following the May 17, 2021 acquisition and the results of Complex Injury Rehab for the period following the November 9, 2021 acquisition. Highmark Health's results included throughout the entire reporting period due to common control.
For our fourth fiscal quarter ended December 31, 2021, revenue was $601,024, a $443,458 increase over 2020 fourth quarter revenue of $157,566. The revenue increase included the revenue from Complex Injury Rehab and BrainFx following their acquisition. Fourth quarter operating expenses increased from $878,500 to $1,679,127 year over year. In addition to the inclusion of BrainFx and of Complex Injury Rehab expenses during 2021, the company also incurred professional fees associated with the cost of the acquisitions and the Qualifying Transaction. Other income and expenses decreased from $250,960 to ($526,783) for the three months ended December 31, 2020 and December 31, 2021 respectively. The decrease is attributable to the non-cash listing expense, interest costs associated with the debt added in 2021, deferred finance cost on the bridge loan and convertible debt offset by the gain on the extinguishment of the contingent share consideration liability related to the acquisition of BrainFx Inc. Comprehensive loss for the three months ended December 31, 2021 was $1,884,045 and $551,683 for the three months ended December 31, 2020.
For our year ended December 31, 2021, revenue was $1,045,181, a $308,803 increase over 2020 revenue of $736,378. The revenue increase included Complex Injury Reb clinical services revenue and BrainFx revenue. Annual operating expenses increased from $2,363,562 to $4,867,744 year over year. In addition to the inclusion of Complex Injury Rehab expenses during 2021, the company also incurred $1,115,955 of professional fees associated with the cost of the acquisitions and the Qualifying Transaction. Other income and expenses decreased from $278,968 to ($348,482) for the twelve months ended December 31, 2020 and December 31, 2021 respectively. The decrease is attributable to the non-cash listing expense, interest costs associated with the debt added in 2021, deferred finance cost on the bridge loan and convertible debt offset by the gain on the extinguishment of the contingent share consideration liability related to the acquisition of BrainFx Inc. Comprehensive loss for the twelve months ended December 31, 2021 was $4,666,145 and $1,674,740 for the twelve months ended December 31, 2020.
Selected Consolidated Financial Information
The following tables set forth selected financial information derived from the Company's unaudited condensed interim financial statements for the three months ended December 31, 2021 and December 31, 2020 and the audited annual consolidated financial statements for the twelve months ended December 31, 2021. and December 31, 2020. The following information should be read in conjunction with the financial statements and management discussion and analysis, which are available under the Company's SEDAR profile at www.sedar.com.
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SOURCE: Highmark Interactive Inc.