Wearable Health Solutions, Inc.’s (OTC: WHSI) is already starting to sell its technology-advanced iHelp4GMAX™ PERS (Personal Emergency Remote Solutions) device with a strengthened balance sheet as shown in its new 10K filing. An exclusive interview with management Harrysen Mittler, Chairman; Peter Pizzino, President; and Vincent Miceli, CFO. WHSI documents its 10K deleveraging with sharply lower debt, strengthened buying power via a Reg. A filing and multiple revenue streams.
New 10K Shows How WHSI Deleverages Debt
Its new 10K for the FY ended June 30, 2022, WHSI reported its total loans and debts outstanding were reduced to $413,099 in 2022 from $853,244 in 2021 — a 51.5% sharp drop. It also cut its accounts payable to $57,940 in the 2022 period from $331,876 — an 82.5% decline. An earlier Reg. A filing by WHSI fueled its buying power to build more iHelp4GMAX™ PERS devices inventory it sought to sell the marketplace.
Fully subscribed, the earlier $5 million Reg. A filing proceeds primarily went to $1,085,000 for product upgrades and inventory, the Company says.
“We’ve finally got all the 4G access we’ve need now to meet effectively with the dealers,” Mittler says. “We are well positioned to execute here. We are delivering products into the marketplace.”
Vincent Miceli, CFO, explained how paying down some $300,000 de-levers the balance sheet . “It’s a stronger balance sheet. Now we’ve addressed the supply chain issues, including lockdowns in China, and now we have the proper team in place exercising on global issues.”
In the 10K, WHSI reports an annual revenue run rate of $1,045,890 for the FY period ended June 30, 2022.
Pizzino, WHSI President, Addresses The Future
Peter Pizzino, president of WHSI, said the company is now balancing its sales to two markets: dealers and end-users. “We are now heavily concentrated on selling the dealers. But we’ve made significant strides in the past year, especially using social media, to balance the streams out. Caregivers want a nurse in the home for remote monitoring, not nursing homes only.”
In its new 10K filing, WHSI reported 2022 hardware revenue of $134,045 and service revenue of $911,845. In 2021, those streams had been $399,602 for hardware revenue and $994,547 for service. In the future, Pizzino said, those streams would level out and sharply higher margins would be apparent as more end user sales are made.
Why WHSI Likes The PERS Market
WHSI sees these positive moves in the PERS Market:
- New entrants include international retailer Best Buy, publicly-traded Modivcare and NFP Advocate Aurora. Private equity players have also shown interest.
- According to UN statistics, by 2060 the worldwide population will have aged to over 75 to 61.6%.
- 90% of seniors say they intend to remain in their homes for the next 5-10 years.
- According to market research, three million Americans aged 65 and older are treated for falls annually
- The core offering solution for all these issues is 24/7 monitoring. These include end user portal monitoring, call triage and telemedicine.
- At just a 12.4% penetration of the market today of ages 70 and older, this is now a $2.1 billion marketplace — with plenty of room to grow forward in the future.
- Purchase from Philips for $750M of its Lifeline PERS brand (owned by Philips since 2006) by Connect America.
WHSI’s Track Record In PERS Market
- WHSI’s own investor’s deck shows it has served 8,500 end users as of October 2022. This includes a current order book of some 2,000+ potential activations.
- WHSI sees the PERS market as highly fragmented and highly competitive. It is bullish and seeks some 5,000 new devices to feed the marketplace.
- Its iHelp MAX™4G pendant device is seen as a next-generation unit to be telehealth ready along with its platform which can be plugged into numerous other devices to enable remote monitoring and data collection of essential vital signs in real time. Its IoT backend platform is a cloud-hosted service. The result is state of the art remote patient monitoring.
- Litchfield Hills Research initiated coverage of WHSI with a ‘buy’ rating and a $0.20 price target. That target is based partially on Litchfield’s assumption of a WHSI break-even by FY 2024 and remains profitable. “WHSI’s the iHelp™ MAX is being introduced and appears to us to be one of, if not the most, advanced medical monitoring system on the market. It connects through WIFI, Bluetooth and 4G and can be used from nearly anywhere.”
CONCLUSION
WHSI is at a turning point in the PERS care marketplace. Its high-tech new iHelp MAX™ 4G device is primed, built for dual-action entry into a low-penetration, fast-growth marketplace of dealers and end-users. Overriding global logistics concerns, WHSI has now proper inventory levels to sell into the market its state-of-the-art device. Its newest 10K shows this is a Company able to de-lever its debt — loans and payables — and is ready to grow. An experienced management team is ready to expand its market share. The fact that large players are entering this growth PERS market is another positive — as is the new report by Litchfield Hills Research recommending a ‘buy’ rating. The market is positive and WHSI is using both social media and its established contacts with an established network of dealers and end users to grow. Its reg. A filing ensures it has enough inventory to meet dealer demand.
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