QHSLab, Inc. Reports First Quarter Financial Results

324% Sequential Revenue Growth in Q1 2023 Compared to Q4 2022 for its Digital Medicine Services.

	●	Total Q1 2023 revenue of $352,799 increased 32% over Q4 2022 revenue
	●	Expanded gross margin in Q1 2023 to 53% resulting in a 300-basis point increase in gross profit compared to the Q4 2022
	●	Digital Medicine Subscription and Services Recurring Revenue combined grew by 168% in Q1 2023 compared to Q4 2022
	●	Shareholders are invited to an upcoming webinar to hear from current physician customers that are actively engaged and utilizing the QHSLab Digital Medicine Platform in their practices.

WEST PALM BEACH, FL, May 15, 2023 (GLOBE NEWSWIRE) -- QHSLab, Inc. (the “Company”) (OTCQB: USAQ), a company focused on providing clinicians with tools to leverage proactive, value-based healthcare solutions through emerging digital health and point-of-care technologies, today announced its first-quarter financial results for the period ended March 31, 2023, reporting strong sequential growth and setting expectations for the remainder of fiscal 2023.

First Quarter 2023 Financial Results

*QHSLab began selling Digital Medicine Subscriptions and Services in the third quarter of 2022 and reported 324% Sequential Recurring Revenue Growth in Q1 2023 Compared to Q4 2022 for its Digital Medicine Integrated Service Program (ISP).

• Revenues for the three months ended March 31, 2023, were $352,799, an increase of $85,082 over revenues of $267,717 reported in the fourth quarter of 2022 due to growth in both Digital Medicine Subscriptions and Digital Medicine ISP sales, which the Company initiated in the third quarter of 2022.
• First-quarter 2023 sales of Digital Medicine Subscriptions were $20,461 compared to fourth-quarter 2022 sales of $12,350; first-quarter 2023 sales of Digital Medicine ISP Services were $34,467 compared to sales of $8,137 in the prior quarter. Digital Medicine ISP Service sales grew by 324% sequentially in Q1 2023 compared to Q4 2022.
• The Company generated a gross profit of $187,342, or a gross margin of approximately 53.1%, in the first quarter of 2023 compared to a gross profit of $135,015, or a gross margin of 50.4% in the fourth quarter of 2022. The increase was primarily attributable to the larger base of sales as well as the transition to higher margin software as a service (SaaS) income.
• Net operating loss (NOL) of $120,758 in Q1 2023 decreased by 17.1% compared to $145,701 in Q4 2022 due to higher gross profit margin and top-line revenue.

Operational Highlights