VANCOUVER, BC, July 8, 2024 /CNW/ - CareSpan Health, Inc. (TSXV:CSPN) ("CareSpan" or the "Company") a digital healthcare company focusing on primary care and mental health through its provider networks American-APN and American-Med Psych, and its "Clinic-in-the-Cloud" integrated digital care platform, announces its audited consolidated financial results for the fiscal year ended December 31, 2023 and unaudited results for the three-month period ended March 31, 2024. The Company also provides an update on the CTO (as defined herein). All amounts are expressed in this press release are in United States dollars. Update on Cease Trade Order On June 12, 2024, the Company filed, together with the applicable fees, its audited financial statements for the year ended December 31, 2022, related management's discussion and analysis, and the certification of annual filings for the period ended December 31, 2023. On June 24, 2024, the Company filed, together with the applicable fees, its interim financial statements for the three-month period ended March 31, 2024, related management's discussion and analysis, and the certification of interim filings for the period ended March 31, 2024. The Company has submitted an application to the TSX Venture Exchange (the "Exchange") to reinstate trading of the common shares of the Company on the Exchange. The Exchange has confirmed that trading of the Common Shares will resume on July 10, 2024. 2023 Financial Highlights Revenue: CareSpan reported total revenue of $2.52 million for the year ended December 31, 2023, a decrease from $4.54 million for 2022. The decline was primarily due to a strategic shift from low-margin to higher-margin business contracts. Operating Expenses: Operating expenses decreased to $4.6 million for the year ended December 31, 2023 from $8.17 million for 2022; a significant portion of the cost reduction was due to a decrease in payments to practices as that portion of the Company's business decreased and its focus shifted to higher margin contracts.  There was also a significant decrease in labor costs, information technology costs, and general administrative expenses for the 2023 year. "In 2023, we made strategic decisions to pivot our business model towards higher-margin SaaS offerings and contracts serving U.S. military veterans," stated Darrell Messersmith, Chief Executive Officer of CareSpan. "This transition necessitated a deliberate, strategic shift from low-margin to higher-margin engagements that we anticipate will improve revenue quality in the long-term. With this focus implemented during the year 2023, we are confident in our ability to drive long-term value." Detailed Look Revenue: CareSpan reported a decrease in annual revenue to $2.52 million for the period ended December 31, 2023, down from $4.54 million for 2022. The decline in revenue was primarily attributed to a programmed decrease in the Company's provider network business that was not yielding the expected margins.  During the past year, the Company's shift was a strategic realignment to focus to support third party contracts with the VA, involving medical examinations for returning veterans and reservists. This business segment has growth potential and improved margins for CareSpan. The Company dedicated its resources to the recruitment of providers for these contracts in 2023 and Q1 2024. These providers are subject to typical stringent credentialing requirements and processes that takes multiple months to complete.  The Company has started to generate network growth through contracting new providers in 2023, as providers became credentialed and are expecting the realization of revenue to continue during 2024 and beyond. Operating Expenses: As the Company pivoted and transitioned its business, revenue from the prior provider network ...