Loading, Please Wait...
CHICAGO, Aug. 15, 2018 (GLOBE NEWSWIRE) -- United American Healthcare Corporation (OTC:UAHC) (the “Company” or “UAHC Holding”), today announced the release of its unaudited first quarter report ending March 31, 2018 (“Quarterly Report”). The Quarterly Report can be found here. Additionally, the Company provided a summary of financial results from the report and an overview of recent operational highlights.
UAHC Holding Highlights:
UAHC Holding reported first quarter 2018 consolidated net income and comprehensive income of $0.1 million and $0.4 million, respectively. The Company’s subsidiary, Pulse Systems, LLC (“Pulse Systems” or “Pulse”), contributed $0.4 million to UAHC Holding’s reported consolidated net income, compared to its net income contribution of $0.3 million in first quarter of 2017. UAHC Holding’s consolidated comprehensive income for the period was negatively impacted by a change in fair value of an outstanding put obligation of $(0.5) million and other declines in the fair value of investment assets held by its subsidiary, UAHC Ventures, LLC (“UAHC Ventures”).
Other financial highlights for the first quarter ending March 31, 2018, include:
Additionally, as discussed in the Quarterly Report’s financial statement footnote, ‘Subsequent Events,’ the Company made interest and principal payments in April and May of 2018, which extinguished that certain Promissory Note dated August 18, 2017 issued by the Company to St. George Investments, LLC with a principal amount of $2,000,000 (“August 2017 Note”). The Company also made an interest and principal payment in June of 2018, which extinguished that certain Promissory Note dated October 10, 2017 issued by the Company to St. George Investments, LLC with a principal amount of $600,000 (“October 2017 Note”).
Both the August 2017 Note and October 2017 Note were issued in exchange for capital used to fund investments made by the Company’s subsidiary, UAHC Ventures. Further, both notes were paid with cash using the proceeds from the sale of common stock by UAHC Ventures from its conversion of a convertible note receivable into equity. The aforementioned debt reduction payments reduced the outstanding balances of the August 2017 Note and October 2017 Note to zero and there are no remaining obligations due thereunder.
UAHC Parent intends to continue using proceeds from the liquidation of its convertible debt investments to reduce debt on its balance sheet and to fund expansion and upgrades of Pulse’s manufacturing equipment.
Pulse Systems, LLC:
The Company’s wholly owned subsidiary, Pulse Systems, a contract manufacturing company that provides services to the medical device industry, continued to show positive growth in first quarter of 2018. Pulse’s sales revenue for the three months ending March 31, 2018 was $3.1 million compared to sales revenue of $2.5 million in the first quarter of 2017, which represents a 24% increase between comparative periods.
Pulse System’s Chief Executive Officer, Herb Bellucci, commented that “Following our solid performance in 2017, Pulse kicked off 2018 with strong first quarter shipment revenue, which was achieved through both an increase in business from our on-going production accounts, as well as emerging product development opportunities with new customers.”
Other Pulse financial and operating highlights for the first quarter ending March 31, 2018, include:
UAHC Ventures, LLC
The Company formed UAHC Ventures in fiscal year 2017 to pursue strategic opportunities in emerging and high-growth sectors such as blockchain technologies and cryptocurrency. UAHC Ventures made its first investment in the third quarter of 2017 through a $2.0 million purchase of a secured convertible promissory note (“MGTI Note”) and warrant to purchase common stock (“MGTI Warrant”) from MGT Capital Investments, Inc. (OTC:MGTI) (“MGTI”).
In first quarter of 2018, UAHC Ventures began realizing income from its MGTI investment as it exercised its right to convert the MGTI Note into shares of the issuer’s common stock and it sold a portion of those conversion shares in the open market. During the three months ending March 31, 2018, UAHC Ventures received proceeds of $2.0 million and recognized realized income from the sale of trading securities of $1.2 million, both of which relate to sales of MGTI common stock received from the debt conversion. As of March 31, 2018, the unsold conversion shares are reported in the Company’s consolidated financial statements as ‘Trading Securities’ at their fair market value.
The Company’s valuation of its UAHC Ventures’ MGTI Warrant for the three months ending March 31, 2018 resulted in the Company reporting an unrealized loss of $3.9 million in consolidated net income from the “Change in value of derivatives – warrants.” The primary driver in the decrease of fair market value reported was the change in the quoted price of the underlying MGTI common stock, which the Company considers when assessing the value of the MGTI Warrant on an “as-exercised” basis.
About United American Healthcare Corporation
United American Healthcare Corporation (“UAHC”), through its subsidiary UAHC Ventures, LLC, pursues opportunities in various growth industries. Additionally, UAHC subsidiary Pulse Systems, LLC, is a contract manufacturing company that provides services to the medical device industry.
This press release contains forward-looking statements. The words or phrases “would be,” “will allow,” “intends to,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” or similar expressions are intended to identify forward-looking statements. All information set forth in this news release, except historical and factual information, represents forward-looking statements. This includes all statements about the Company’s plans, beliefs, estimates and expectations. These statements are based on current estimates and projections, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These risks and uncertainties include issues related to: rapidly changing technology and evolving standards in the industries in which the Company and its subsidiaries operate; the ability to obtain sufficient funding to continue operations, maintain adequate cash flow, profitably exploit new business, and license and sign new agreements; the unpredictable nature of consumer preferences; and other factors set forth in the Company’s most recently filed annual report and registration statement. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s analysis only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. Readers should carefully review the risks and uncertainties described in other documents that the Company files from time to time at OTCMarket.com.
Christina Saxton Chief Financial Officer 312-297-7018 firstname.lastname@example.org