Cloud DX Reports Fiscal 2021 Annual Results
KITCHENER, ON / ACCESSWIRE / May 2, 2022 / Cloud DX (TSXV:CDX) (OTCQB:CDXFF), (the “Company”) a leading North American provider of virtual care and remote patient monitoring solutions today reports results for the full year 2021.
Key Developments:
- Subscription Revenue of $369,863 was 23% higher for the year compared to 2020.
- Product Revenue of $292,344 was 59% lower due to timing of equipment orders.
- Total Revenue of $782,297 was 33% lower due to lower Product Revenue.
- Government funding was $1,205,085 (vs $1,395,016 in 2020).
- Overall, new and existing contract activity was negatively impacted by Delta and Omicron waves in Q3 and Q4, 2021 which slowed some adoption.
- Operating Expenses increased 53% due to hiring of key staff, one-time share-based compensation increase as part of the QT and a one-time impairment in Inventory.
- New partnerships in the fourth quarter, including with Medtronic Canada resulted in potential increased access to over 1,000,000 patients.
2021 Annual Financial Highlights
Revenue
For the year ended December 31, 2021, the key metric of subscription revenue increased 22.8% from $301,213 to $369,863. Overall revenue was lower by $381,498 or 32.8% due primarily to delays in some product orders, which won’t be recognized until 2022. Professional and other revenue was lower by $32,585 or 21.3% due primarily to COVID waves in Q3 and Q4 which paused some contracts (please see Audited Consolidated Financial Statements). Government grant funding was $1,205,085 in 2021, a 13.6% reduction from 2020 due primarily to the completion of an Ontario Centre for Innovation (OCI)-funded project.
Expenses
Operating expenses increased $3,730,325 or 53.4% in the year ended December 31, 2021, mainly due to the Company focusing on implementing infrastructure to support scaling of the business. Due to hiring additional employees in 2021, salaries and wages increased by $2,165,288 or 60.6%. One-time costs include an increase of $672,122 in share-based compensation at the QT, and a $289,160 impairment to Inventory. Research and development expenses fell by $76,643 or 13.9% between 2020 and 2021 due to completion of the initial phases of the NGEN Project in 2020. Please see Audited Consolidated Financial Statements for more details.
Customer Statistics
Cloud DX has seen access to available patients suited to its remote patient monitoring products increase due to the execution of 12 contracts over the course of 2021. In particular, contracts with Lung Health Ontario, Hamilton Health Sciences, University of Waterloo and 8 US clinics with partner Maxwell Telecare showed accelerating growth in the period. On December 1, 2021, the Company announced an exclusive contract with Medtronic Canada, under which that company (subsidiary of Medtronic PLC (NYSE:MDT)) agreed to integrate Cloud DX Connected Health into all its main lines of business in Canada. Medtronic stated that they serve up to 1,000,000 patients in Canada annually.
Subsequent Events
From January 1, 2022 to date, the Company has announced 12 new commercial contracts and the extension of 2 provincial/territorial government contracts, a performance that matches productivity in all of 2021.
About Cloud DX
Accelerating virtual healthcare, Cloud DX is on a mission to make healthcare better for everyone. Our Connected Health TM remote patient monitoring platform is used by healthcare enterprises and care teams across North America to virtually manage chronic disease, enable aging in place, and deliver hospital-quality post-surgical care in the home. Our partners achieve better healthcare and patient outcomes, reduce the need for hospitalization or re-admission, and reduce healthcare delivery costs through more efficient use of resources. Cloud DX is the co-winner of the Qualcomm Tricorder XPRIZE, a 2021 Edison Award winner, a Fast Company “World Changing Idea” finalist, and was named a “New Innovator 2022” by Canadian Business magazine. Cloud DX is an exclusive virtual care partner to Medtronic Canada and Equitable Life.
Cloud DX Investor Site https://ir.clouddx.com/overview/default.aspx
For media inquiries please contact:
Janine Scott
Marketing Lead
888-543-0944
janine.scott@CloudDX.com
For investor inquiries please contact:
Jay Bedard
Cloud DX Investor Relations
647-881-8418
jay.bedard@CloudDX.com
Forward-Looking Information
This news release contains forward-looking statements and information within the meaning of applicable securities legislation. Often, but not always, forward-looking statements and information can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements or information involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements or information contained in this news release.
Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. In making the forward-looking statements in this news release, the Corporation has applied several material assumptions, including without limitation, information concerning the receipt of approval from the TSX Venture Exchange, the use of proceeds and the Corporation’s marketing and research and development strategies and the expected benefits thereof.
Although management of the Corporation has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information.
The securities of the Corporation have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) or any U.S. state securities laws and may not be offered or sold in the United States absent registration or an available exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there by any sale of the securities referenced in this press release, in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Neither the TSX Venture Exchange nor its Regulation Services 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: Cloud DX Inc.
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