HEALWELL AI achieved quarterly revenue from continuing operations of $4.58 million in Q1-2024, 132% higher compared to $1.97 million generated in Q1-2023 and 139% higher than $1.92 million generated in Q4-2023. Since its relaunch in Q4-2023 and its acquisition of Intrahealth, an enterprise class EHR service provider on February 1, 2024, the Company's annual revenue run rate has more than doubled to over $20 million with the largest component of revenues now coming from SaaS and services. Management provides a positive outlook based on strong and active acquisition and business development pipeline with the potential to more than double HEALWELL's yearly revenue run-rate to over $40 million using the Company's existing cash on hand, not including the proceeds of the recently announced bought deal financing for up to $20 million. HEALWELL's strategic alliance with WELL Health Technologies Corp. (TSX:WELL) continues to flourish. WELL recently launched the second-generation of WELL AI Decision Support, an AI physician co-pilot powered by HEALWELL, which has expanded its scope from providing clinical decision support for rare disease diagnosis and preventative care to now include advanced chronic diseases screening, arriving just six months after the initial launch. TORONTO, May 14, 2024 (GLOBE NEWSWIRE) -- HEALWELL AI Inc. ("HEALWELL" or the "Company") (TSX:AIDX) (OTCQX:HWAIF), (formerly known as MCI Onehealth Technologies Inc.), a healthcare technology company focused on AI and data science for preventative care, is pleased to announce its interim consolidated financial results for the quarter ended March 31, 2024. Dr. Alexander Dobranowski, HEALWELL's CEO, commented, "The first quarter marked an exceptional continuation of our journey since rebranding as HEALWELL AI last year and embracing our mission to revolutionize healthcare and enhance lives through early disease detection, powered by cutting-edge AI and data science technologies. Just six months after powering our partner WELL's first-generation physician co-pilot, which was focused on rare disease detection, we have launched what we believe is currently the Canadian market's only commercially available AI powered physician co-pilot that is integrated with a major EHR and assists with chronic disease detection. Given the importance of chronic disease to our healthcare ecosystem as the leading cause of death and disability, we couldn't be prouder to bring this profound new capability to physicians via our partnership with WELL and our exclusive role powering their WELL AI Decision Support Tools." Dr. Dobranowski further adds, "We're incredibly optimistic about our future trajectory, driven by a combination of organic growth and strategic mergers and acquisitions. Currently, our robust acquisition pipeline positions us for substantial expansion, potentially doubling our current revenue run-rate of over $20 million to exceed $40 million annually, leveraging our existing cash reserves. Our key areas of focus include ramping up physician adoption of the HEALWELL platform, accelerating sales of our AI tools and technology, broadening Intrahealth's reach, and deepening our integration within the WELL ecosystem. We're witnessing an unprecedented opportunity in healthcare data science and artificial intelligence, and we're poised to capitalize on it." Scott Nirenberski, HEALWELL's CFO, commented, "HEALWELL closed the first quarter with a cash balance of $11.3 million. The recent announcement of an upsized bought deal financing of up to $20 million will, on completion, further strengthen our financial position, providing a substantial increase in cash reserves to fuel future M&A endeavors. It's important to note that our Q1 results do not fully reflect the Company's current run-rate revenues, as the Intrahealth acquisition, finalized in February, is anticipated to contribute over $12 million in annualized revenue, as well as positive EBITDA. Looking forward, we are optimistic about the prospects for both our top and bottom-line performance." A summary of the Company's financial and operational results is set out below, and more detailed information is contained in the interim consolidated financial statements and related management discussion and analysis, which are available on the Company's SEDAR+ page at www.sedarplus.com. Financial measures described as "Adjusted" in this news release are non-IFRS financial measures and may not be comparable to other similar measures disclosed by other companies. Please see Non-IFRS Financial Measures below for more information. First Quarter 2024 Financial Highlights Significant financial highlights for the Company's continuing operations during the three months ended March 31, 2024 included: HEALWELL achieved quarterly revenue from continuing operations of $4.58 million during Q1-2024, an increase of 132% compared to $1.97 million generated in Q1-2023. The growth in revenue is primarily attributed to the addition of Intrahealth Systems Limited ("Intrahealth"). HEALWELL achieved Adjusted Gross Profit(2) of $2.84 million during Q1-2024, an increase of 329% compared to $0.66 million in Q1-2023. The increase in Gross Profit is primarily attributed to higher revenue in the quarter from the acquisition of Intrahealth. HEALWELL achieved an Adjusted Gross Margin(2) percentage of 62% during Q1-2024, compared to 33% in Q1-2023. The improvement in Adjusted Gross Margin improvement was due to the contribution of higher margin revenue from Intrahealth. During Q1-2024, HEALWELL reported Adjusted EBITDA(1) loss of $2.56 million, compared to a loss of $1.86 million in Q1-2023. As at March 31, 2024, HEALWELL had $11.34 million in cash, compared to $19.16 million as at December 31, 2023. The decrease in cash balance was due to the acquisition of Intrahealth.   First Quarter 2024 Business and Operational Highlights Significant business and operational highlights for the Company during the three months ended March 31, 2024 included: Intrahealth Acquisition: On February 1, 2024, the Company announced that it had completed the acquisition of Intrahealth. Intrahealth is an advanced SaaS based Electronic Health Records ("EHR") management platform for small and medium enterprise healthcare organizations across Canada, Australia, and New Zealand. Intrahealth is expected to generate over $12 million in revenues in 2024, which reflects double digit organic growth. Historically, Intrahealth has achieved over 80% gross margins, produced positive EBITDA, and positive cashflows. Over 80% of its revenue is high margin recurring revenue. Chairman of the Board Appointment: On February 27, 2024, the Company announced the appointment of Hamed Shahbazi as Chairman of the Board of HEALWELL. Mr. Shahbazi is currently the Chairman and CEO of WELL, Canada's largest owner operator of outpatient medical clinics and leading digital health service providing software and services to more than one third of all Canadian physicians. Mr. Shahbazi has served on the Board of HEALWELL since its relaunch on October 1, 2023. Concurrent to Mr. Shahbazi's appointment, Mr. Kingsley Ward stepped down from HEALWELL's Chairman position but continues to serve as an independent director on HEALWELL's board. WELL USA and Circle Medical Partnership: On March 14, 2024, the Company announced new commercial agreements with WELL Health USA and Circle Medical, expanding into the US market. The agreements will allow HEALWELL to provide US patients with access to its subsidiaries Pentavere Research Group Inc. ("Pentavere") and Khure Health Inc. ("Khure") for the purposes of earlier diagnosis and identification of patients with potential risks of certain conditions. Events Subsequent to March 31, 2024 Significant business and operational highlights for the Company subsequent to March 31, 2024 included: HEALWELL AI's Pentavere's Landmark Publication: On April 4, 2024, the Company's subsidiary, Pentavere, published a ground-breaking paper validating the use of generative AI to identify rare lung cancer patients. Through innovative research and collaboration with industry leaders, Pentavere is unlocking the potential of AI to drive meaningful improvements in patient outcomes and advance precision medicine initiatives globally. Launch of Second Generation WELL AI Decision Support: On May 2, 2024, the Company and WELL introduced the second generation of the WELL AI Decision Support ("WAIDS"). This enhanced version features advanced chronic disease screening, including detection capabilities for chronic kidney disease, hypertension, and diabetes. WAIDS now identifies over one hundred diseases, providing actionable clinical insights at the point of care to aid in patient risk stratification and contribute to the management of chronic disease-related costs in Canada, estimated at approximately $190 billion annually. Bought Deal Financing: On May 6, 2024, the Company announced it has upsized its previously announced $16,000,065 bought deal offering to 12,592,600 units of the Company (the "Units"), on a "bought deal" private placement basis, at a price of $1.35 per Unit (the "Issue Price") for gross proceeds of $17,000,010 (the "Offering"). Each Unit is comprised of one Class A subordinate voting share of the Company (a "Subordinate Voting Share") and one-half of one Subordinate Voting Share purchase warrant (each whole warrant, a "Warrant") of the Company. Each Warrant shall entitle the holder thereof to purchase one Subordinate Voting Share at an exercise price of $1.80 for a period of two (2) years. The Company agreed to amend the terms of the agent's option granted to the underwriters to permit the underwriters to purchase up to an additional 2,222,400 Units at the offering price. In the event the option is exercised in full, the aggregate gross proceeds of the offering will be $20,000,250. The financing remains subject to the satisfaction of certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange. Webcast and Conference Call Details: As previously announced, HEALWELL will be holding a conference call and simultaneous webcast to discuss its financial results on Tuesday May 14, 2024 at 5:00 pm ET (2:00 pm PT). The call will be hosted by Dr. Alexander Dobranowski, Chief Executive Officer, and Scott Nirenberski, Chief Financial Officer. Please dial-in 10 minutes prior to the start of the call. Date: Tuesday May 14, 2024Time: 5:00 pm ET / 2:00 pm PTFor attendees who wish to join by webcast, the event can be accessed at: https://edge.media-server.com/mmc/p/iboe8jex Attendees who wish to join by phone must visit the following link and pre-register: https://register.vevent.com/register/BI10befc2e470d4f5c82cbd87e488dee0f Selected Financial Information(in thousands of dollars, except percentages and per share amounts) Results of Operations           Three months ended Period over   March 31 period Change   2024 2023 $ %   ($ in thousands except percentages) Continuing operation         Revenue 4,579   1,974   2,605   132   Cost of Revenue 2,190   1,471   719   49   Gross Profits 2,389   503   1,886   375             Research and development 916   1,850   (934)   (50)   Sales and marketing 760   187   573   306   General and administrative 6,149   2,242   3,907   174     7,825   4,279   3,546   83             Net financing expenses 673   242   431   178   Share of comprehensive loss from associate -   26   (26)   (100)   Changes in fair value of Call options 400   -   400   -   Changes in fair value of contingent consideration -   (7)   7   (100)   Gain on settlement of shares-contingent consideration -   677   (677)   (100)   Impairment of investment in an associate -   2,303   (2,303)   (100)     1,073   3,241   (2,168)   (67)             Loss before taxes (6,509)   (7,017)   508   (7)   Income tax (recovery) (234)   (218)   (16)   7   Net loss-continuing operation (6,275)