Rushnet, Inc Announces Debt Restructuring to Greatly Increase Profitability and Cash Flow

ALPHARETTA, GA / ACCESSWIRE / May 20, 2022 / RushNet, Inc (OTC PINK:RSHN), (the “Company”) is pleased to announce the debt restructuring for the existing lab purchase of heliosDX. As per the original agreement, heliosDX is to make a $64,000 payment monthly, with a balloon payment due in 2024.

The original purchase amount of the laboratory was for $6,000,000 and currently with the new amortization schedule the company has an outstanding balance of approximately $4,400,000. The amendment to the current debt liability will allow heliosDX to defer payment until March 31, 2023, at an interest rate of 2% above prime on the monthly payment, and not the sum of the overall balance. This is a significant advantage for heliosDX as the company is paying very little in interest to push the debt payments until 2023. heliosDX and the debtee have the right on a quarterly basis to end the restructuring should it no longer be needed.

The advantage of such restructuring significantly impacts heliosDX and the bottom-line. As we’ve progressed through the spinout process from Rushnet Inc., with subsequent increased expenditures from legal counsel, accountants, auditors, and other one-time costs, we have seen our profits erode as indicated in Quarter 1 financials. This will immediately relieve pressure.

The restructuring allows the company to immediately impact profitability and cash flow. In addition, it allows the company to avoid any adverse loan debt refinancing which would be a detriment to the business and shareholders.

This restructuring would not have been possible without the willingness of the debtee to understand and buy into the long-term vision of the company and its goals. heliosDX would like to offer a sincere thank you to the previous management of Chattahoochee Physicians Laboratory Services for truly acting as a partner and adjusting the terms of debt in the best interest of the company and its shareholders.

About HeliosDx:

heliosDX is a National Clinical Reference Laboratory offering High-Complexity Urine Drug Testing (UDT), Behavioral Drug Testing, Allergy Droplet Cards, Oral Fluids, Infectious Disease (PCR), and NGS Genetic Testing. We are contracted in 44 of the lower 48 states and looking to expand our reach and capabilities. We intend to always stay ahead of the curve by continually investing in our infrastructure with the most efficient scientific proven instruments and latest cutting-edge software for patient and physician satisfaction. In management’s opinion, following such best practices are intended to allow heliosDX to provide physicians fast and accurate reporting, meeting, and exceeding industry benchmarks. It is our goal to excel in patient and client care through physician designed panels that aid in testing compliance and reporting education.

Contact: Ashley Sweat
asweat@heliosdx.com
www.heliosdx.com
Twitter Handle: @dx_helios

Safe Harbor Notice

Certain statements contained herein are “forward-looking statements” (as defined in the Private Securities Litigation Reform Act of 1995). The Company cautions that statements, and assumptions made in this news release constitute forward-looking statements and make no guarantee of future performance. Forward-looking statements are based on estimates and opinions of management at the time statements are made. These statements may address issues that involve significant risks, uncertainties, estimates made by management. Actual results could differ materially from current projections or implied results. The Companies undertake no obligation to revise these statements following the date of this news release.

Investor caution/added risk for investors in companies claiming involvement in COVID-19 initiatives –

On April 8, 2020, SEC Chairman Jay Clayton and William Hinman, the Director of the Division of Corporation Finance, issued a joint public statement on the importance of disclosure during the COVID-19 crisis.

The SEC and Self-Regulatory Organizations are targeting public companies that claim to have products, treatment, or other strategies with regard to COVID-19.

The ultimate impact of the COVID-19 pandemic on the Company’s operations is unknown and will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the duration of the COVID-19 outbreak. Additionally, new information may emerge concerning the severity of the COVID-19 pandemic, and any additional preventative and protective actions that governments, or the Company, may direct, which may result in an extended period of continued business disruption, reduced customer traffic and reduced operations. Any resulting financial impact cannot be reasonably estimated at this time.

We further caution investors that our primary focus and goal is to battle this pandemic for the good of the world. As such, it is possible that we may find it necessary to make disclosures which are consistent with that goal, but which may be averse to the pecuniary interests of the Company and of its shareholders.

SOURCE: RushNet, Inc.

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