“We had another outstanding quarter with record revenue and positive Adjusted EBITDA...Our focus in 2024 is to continue growing revenue, being a profitable company and introducing our story to more potential shareholders” - Shane Madden, CEO of Hydreight

VANCOUVER, British Columbia and LAS VEGAS, Aug. 28, 2024 (GLOBE NEWSWIRE) -- Hydreight Technologies Inc. (“Hydreight” or the “Company”) ( TSXV: NURS )( OTCQB: HYDTF )( FSE: SO6 ), a fast-growing mobile clinical network and medical platform which enables flexible at-home medical services across 50 states in the United States, is pleased to announce its financial results for the first quarter ended June 30, 2024. All financial information is presented in Canadian dollars unless otherwise indicated.

Summary of Q2, 2024 Financial Highlights:

• Q2, 2024 GAAP revenue was $4.10 million an increase of 52% compared to Q2, 2023.
• Q2, 2024 topline¹ record revenue of $5.59 million, an increase of 27% compared to Q2, 2023.
• Q2, 2024 Adjusted EBITDA¹ was $218K compared to ($456K) in the comparative quarter.
• Q2, 2024 gross margin of $1.56 million compared to $1.08 million in Q2, 2023.
• Hydreight has secured national medical spa partners with collectively almost 700 locations sold and 140 opened across the United States.
• The total number of pharmacy orders through Hydreight platform year to date has increased by about 74% in comparison to the same period last year.
• The company has never raised or borrowed any additional capital since the original going public transaction in December 2022.
• The Company’s cash position at June 30, 2024 is $1.40 million.
• Hydreight announced a partnership with DSV Global and VS Digital Health called VSDHOne, a telemedicine solution that helps companies launch a direct to consumer (“D2C”) healthcare brand in all 50 States. The purpose of launching VSDHOne is to make it easy for any existing brick and mortar or individual to launch a D2C healthcare brand in a few days without worrying about compliance, doctor network, telemedicine and ecommerce technology, medical direction and oversight, pharmacy network, and medical legal framework covering all 50 States. With the marriage of virtual and at facility healthcare features, companies can expand beyond their current Brick and Mortar solution.
• Investor webinar, Tuesday, September 3, 2024, at 11:00am PT/ 2:00pm ET

Shane Madden, CEO of Hydreight commented, “We had an outstanding quarter with record revenue, Adjusted EBITDA¹ and Adjusted Revenue¹. Our investment in our technology and infrastructure in 2023 helped us to become the mobile medicine solutions for nurses, bricks and mortar and D2C businesses. We are very excited for our “VSDHONE” products expansion and cashflow in the next 12 months.”

The Company believes the following Non-GAAP¹ financial measures provide meaningful insight to aid in the understanding of the Company’s performance and may assist in the evaluation of the Company’s business relative to that of its peers:

	Three months ended June 30,					Six months ended June 30,
	2024		2023		% change	2024		2023		% change
Adjusted Revenue	$	5,589,481	$	4,416,103	27%	$	10,456,485	$	8,083,524	29%
Deduct - deferred business partner contract revenue	(186,935)		190,934			(303,913)		171,886
Deduct - business partner payouts on app service gross revenue	1,676,204		1,525,501			3,282,580		2,863,554
GAAP Revenue	$	4,100,212	$	2,699,668	52%	$	7,477,818	$	5,048,084	48%
Adjusted Gross Margin	$	1,372,862	$	1,270,762	8%	$	2,487,218	$	2,294,147	8%
Deduct - deferred business partner contract revenue	(186,935)		190,934			(303,913)		171,886
GAAP Gross Margin	$	1,559,797	$	1,079,828	44%	$	2,791,131	$	2,122,261	32%
Adjusted EBITDA	$	217,708	$	(455,580)	148%	$	171,835	$	(561,936)	131%
Deduct - amortization and depreciation	24,636		$	16,310		71,189		32,258
Deduct - share-based payments	220,159		$	-		436,454		-
GAAP Net Loss	$	(27,087)	$	(471,890)	94%	$	(335,808)	$	(594,194)	43%

¹ Refer to Use of Non-GAAP Financial Measures

The table below sets out a summary of certain financial results of the Company over the past eight quarters and is derived from the audited annual consolidated financial statements and unaudited quarterly consolidated financial statements of the Company.

		Net Loss After Taxes	Comprehensive Loss	Basic and Diluted Loss Per Share
Fiscal Quarter Ended	Revenue
June 30, 2024	4,100,212	(27,087)	(48,184)	(0.00)
March 31, 2024	3,377,606	(308,721)	(370,559)	(0.01)
December 31, 2023	3,373,193	(898,561)	(865,068)	(0.02)
September 30, 2023	3,088,219	(466,973)	(548,954)	(0.01)
June 30, 2023	2,699,668	(471,890)	(405,638)	(0.01)
March 31, 2023	2,348,416	(122,304)	(121,502)	(0.00)
December 31, 2022	1,695,134	(5,060,755)	(5,062,144)	(1.44)
September 30, 2022	1,136,510	(240,360)	(298,367)	(0.07)

The Company has experienced dramatic user growth over the past two years as can be seen by the consistent revenue growth over the past eight quarters.

The Company continues to deliver on its mission of building the largest mobile clinical network in the United States. Through its medical network, pharmacy network and proprietary technology platform that adheres to the complex healthcare legislation across 50 states, Hydreight has provided a fully integrated solution for healthcare providers to become independent contractors.

Hydreight remains focused on its strategic priorities of (1) Profitability (2) adding more product and service offerings for its customers, (3) introducing Hydreight story with more potential shareholders (4) driving white label partnerships and Nurses to the platform and (5) looking for strategic tuck in M&A opportunities to scale and grow the business quickly and efficiently. Hydreight will continue to invest into its technology to ensure continuous improvements, advancements and updates adhering to changes within the healthcare industry.

Please see SEDAR+ for the Company's condensed interim consolidated unaudited financial statements and MD&A for the three and six months ended June 30, 2024 and 2023 and for the Company’s audited annual consolidated financial statements and MD&A for the year ended December 31, 2023 and 2022.

Investor Webinar:

The Company’s management team will be hosting a webinar to discuss the financials and provide corporate updates:

Date/Time: Tuesday, Sept. 3, 2024, at 11am PT / 2pm ET

Registration link: https://hydreight.zoom.us/webinar/register/WN_6V91HNW2QlCJ0x-UUIo-rA

About Hydreight Technologies Inc.

Hydreight Technologies Inc. is building the largest mobile clinic network in the United States. Its proprietary, fully integrated platform hosts a network of over 2500 nurses, over 100 doctors and a pharmacy network across 50 states. The platform includes a built-in, easy-to-use suite of fully integrated tools for accounting, documentation, sales, inventory, booking, and managing patient data, which enables licensed healthcare professionals to provide services directly to patients at home, office or hotel. Hydreight is bridging the gap between provider compliance and patient convenience, empowering nurses, med spa technicians, and other licensed healthcare professionals. The Hydreight platform allows healthcare professionals to deliver services independently, on their own terms, or to add mobile services to existing location-based operations. Hydreight has a 503B pharmacy network servicing all 50 states and is closely affiliated with a U.S. certified e-script and telemedicine provider network.

On behalf of the Board of Directors
Shane Madden
Director and Chief Executive Officer
Hydreight Technologies Inc.

Contact

Email: ir@hydreight.com; Telephone: (480) 790 6886

This press release does not constitute an offer of securities for sale in the United States. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent U.S. registration or an applicable exemption from U.S. registration requirements.

Use of Non-GAAP Financial Measures:

This release contains references to non-GAAP financial measures Adjusted Revenue, Adjusted Gross Margin, and Adjusted EBITDA. The Company defines Adjusted Revenue as gross cash income before adjustment for the deferred portion of business partner contract revenue and gross receipts from Hydreight App service sales. The Company defines Adjusted Gross Margin as GAAP gross margin plus inventory impairment plus the deferred portion of business partner contract revenue. The Company defines Adjusted EBITDA as net income (loss) before interest, taxes, depreciation and amortization and before (i) transaction, restructuring, and integration costs and share-based payments expense, and (iii) gains/losses that are not reflective of ongoing operating performance. The Company believes that the measures provide information useful to its shareholders and investors in understanding the Company’s operating cash flow growth, user growth, and cash generating potential for funding working capital requirements, service future interest and principal debt repayments and fund future growth initiatives. These non-GAAP measures may assist in the evaluation of the Company’s business relative to that of its peers more accurately than GAAP financial measures alone. This data is furnished to provide additional information and does not have any standardized meaning prescribed by GAAP. Accordingly, it should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP and is not necessarily indicative of other metrics presented in accordance with GAAP.

Neither TSXV nor its Regulation Services Provider (as that term is defined in policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release. This press release does not constitute an offer of securities for sale in the United States. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent U.S. registration or an applicable exemption from U.S. registration requirements.

Cautionary Note Regarding Forward-Looking Information

This press release contains statements which constitute “forward-looking information” within the meaning of applicable securities laws, including statements regarding the plans, path to profitability, intentions, beliefs and current expectations of the Company with respect to future business activities and operating performance. Forward-looking information is often identified by the words “may”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” or similar expressions and includes information regarding expectations for the Company's growth and profitability in 2024.

Investors are cautioned that forward-looking information is not based on historical facts but instead reflects the Company’s management’s expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although the Company believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the Company. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are the following: the ability to obtain requisite regulatory and other approvals with respect to the business operated by the Company and/or the potential impact of the listing of the Company’s shares on the TSXV on relationships, including with regulatory bodies, employees, suppliers, customers and competitors; changes in general economic, business and political conditions, including changes in the financial markets; changes in applicable laws; compliance with extensive government regulation; and the diversion of management time as a result of being a publicly listed entity. This forward-looking information may be affected by risks and uncertainties in the business of the Company and market conditions.

Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.

¹See Use of Non-GAAP Financial Measures