Highmark Interactive Inc. Reports Fiscal First Quarter 2022 Financial Results - Seite 2

By fusing proprietary digital clinical decision support technology with virtual and traditional models of healthcare service, Highmark is committed to delivering better outcomes for people struggling with brain health and mental health.

Dr. Sanjeev Sharma, CEO of Highmark, noted, "We're pleased that integration of the three acquisitions completed in 2021 has gone as well as it has, as the Company is beginning to see wins collaboratively in the marketplace. We expect operational synergies to enable ongoing strong organic growth, both in Canada and the broader US market." Furthermore, said Sharma, "While operating within a difficult macroeconomic climate is challenging, the Company has never had as robust a sales pipeline as it does today. The primary driver of that is Highmark's software has been deemed reimbursable as per regulations of the largest purchaser of health care on the planet; the

United States Centers for Medicare and Medicaid Services (CMS). Highmark's FDA cleared software is a net income generator for clinicians, with its cost being covered for patients. As such, the company is excited about being able to begin executing against its robust RPM pipeline, with deployment targeted for the second quarter of 2022."

Financial Highlights

The financial results for the three months ended March 31, 2022 include the results of BrainFx Inc. following the May 17, 2021 acquisition and the results of Complex Injury Rehab following the November 9, 2021 acquisition.

For the first fiscal quarter ended March 31, 2022, revenue was $669,685, a 446% increase over 2021 first quarter revenue of $122,596. The revenue increase included the revenue from Complex Injury Rehab and BrainFx. First quarter operating expenses increased from $867,708 to $1,446,179 for the three months ended March 31, 2022 compared to the same period last year. In comparison to the first quarter of 2021, the company has increased headcount by just over 328%, and is continuing to grow to meet expected sales demand over the balance of the year. Offsetting the inclusion of BrainFx and of Complex Injury Rehab expenses during the first quarter of 2022, the Company incurred lower legal and accounting expenses associated with the costs of the Qualifying Transaction with Stormcrow and the acquisitions of BrainFx, Complex Injury and Highmark Health. Other expenses increased from $13,542 to $197,582 for the three months ended March 31, 2022 and March 31, 2021 respectively. The increase is attributable to interest costs and the deferred finance costs associated with the bridge loan and convertible debt added in the second quarter of 2021. Comprehensive loss for the three months ended March 31, 2022 was $1,476,350 and $842,538 for the three months ended March 31, 2021.