ICR - INTELICARE HOLDINGS LTD

Listed: 29 MAY 2020 Headquarters: Australia

Since listing: -73.68% Last 12 months: -62.96%

InteliCare (ICR) sells an ongoing $33/week subscription service to their home monitoring system, which is designed to detect and prevent falls and other health ailments in elderly and disabled people. In short, they're bringing SaaS to Grandma’s house when she doesn’t want to get shipped off to a nursing home. ICR service the Australian market, and despite having the catchy phone number of (855)70-CARED they don’t appear to have any sales or real presence in the US.

What’s going well?

ICR’s most recent annual report advises sales revenue was up 179% year on year (YoY) to $927k, while sales was up 36% YoY to $363k and toal users was up 62% YoY. Their $1.3m cap raise was a passable success, with a 44% uptake from eligible shareholders. They’ve also increased subscriber numbers from ~600 to ~1000 during 2021, on the back of heavy B2B and B2C marketing campaigns that delivered a 7.5x B2C growth.

What’s not going well?

Money, it's a gas. Since listing on the ASX ICR have netted a $1.2m loss and their most recent $1.69m loss. In short their issue is they’re not getting enough customers because no one knows their product exists. 75% of people had never heard of any “assisted technology brands'' and of those who do know brands 16% know of InteliCare (which made them #1 for brand recognition). Quickmafs shows that only 4% of their target audience knows who InteliCare is, and that’s AFTER the brand awareness marketing campaign. The share price has also taken a beating down 73.68% over the last two years since listing which suggests no relief in sight for shareholders in the foreseeable future.

What are the good signs?

New CEO Daniel Pilbrow seems well credentialed for the role, and his salary of $280k plus $150k STIs and a stack of performance options demonstrates he’s willing to put his money where his mouth is in terms of turning the business around. The company appears to have realised their biggest issue is a lack of sector awareness, and the heavy marketing should allow them to continue getting their brand out there as a workaround solution to what will become a growing issue as the country continues to age.

What are the bad signs?

Then CEO Jason Waller stated in his June 2020 report to shareholders that “I sincerely believe there is enormous potential in our product and strategy”. Protip, anytime you see a CEO using the words ‘sincerely believe’ that means it’s not overly sincere, as was reflected by the fact that just 10 months later sincere believer Jason left the company this week to “pursue other business opportunities” after only three years at the helm. They still have him listed as the CEO on their website in the ‘About Us’ section, which shows they don’t have a lot of transitional handover experience. They’re also haemorrhaging cash and don’t seem to have a way of stemming the outflows, as their current strategy has been to cap raise their way out of it while they wait for revenues to catch up.

TLDR: Not a great investment right now, revisit in 12 months time.

ONE - Oneview Healthcare PLC

Listed: 17 MARCH 2016 Headquarters: Ireland

Since listing: -92.81% Last 12 months: -45.24%

Oneview Healthcare Plc (ONE) is a software and solutions company that provides interactive healthcare technologies for patients, families and caregivers. Essentially they aim to do two things, give those stuck in hospital more technology to play with so you’ve got something to do while recovering, and inject some basic tech upgrades into the medical side of things while they’re at it. If this struck you as a bit of a strange idea for a company that’s got a $119m market cap, don’t worry, you’re not alone. This overview is light on numbers, because there’s so much more to unpack here.

What’s going well?

In 2021 company’s gross profits increased from €7.1m to €9.73m. Cash on hand jumped from €6.8m to €15.1m and the balance sheet looks 50% healthier this year at €21m. Basic loss per share decreased from 0.05 to 0.02, but that’s because they went from 181m shares on issue (SOI) to 431m SOI. They also announced yesterday they had settled a lawsuit against fellow ASX small cap REG and will receive a $2m settlement as a result.

What’s not going well?

If the above figures were the ‘good figures’ then the bad figures are simply those that are even less pretty. Current liabilities have gone from €8.7m to €10.2m and while their total comprehensive loss declined from €9.13m to €8.35m they’re still losing substantial amounts of money year on year.

What are the good signs?

None, there are no good signs for this company. So instead I’ll talk a little bit about their product OneView and why after 14 years of existence they’re only in 9,467 beds. Are you currently in hospital but still living in the early 2000s where mobile phones, laptops and tablets weren’t really a thing? OneView offers “full HD movies featuring your choice of latest releases and classics”, of which they use ‘Paddington 2’ as the example, just in case you’re not in enough pain already and wish to suffer more. Does your hospital have building automation, but don’t trust you with the remote control to use it? OneView allows you to set your own room temperature, and turn the lights on and off using their device. Has your family blocked your number because you’re annoying and won’t stop being a burden? Get around this by constantly video calling them via the OneView app instead.

Admittedly there are some useful functions in their product (hospital meal planning, translator services, educational videos such as giving yourself an insulin shot, however they’ve spread themselves too thin in making OneView an all in one solution, when realistically if they focused on making your hospital experience more streamlined, and less on the keeping you entertained, they’d probably do much better. They need to use the KISS principle of solving the hospital related problems, and instead of having numerous entertainment apps that all require ongoing costs, upgrades and maintenance, instead letting the insured use their own phone/laptop/family to keep them entertained during the stay.

What are the bad signs?

Where to start? On 20 October the share price was $0.46. On 15 November the company announced a $20m cap raise at $0.27 when the share price was $0.32. On 17 December the SPP was withdrawn, as the share price had fallen below the SPP offer price. The following month they announced the temporary CFO who had overseen this disaster was now appointed as the full time CFO, presumably not on a performance related basis.

Their March 2022 annual report to shareholders uses this image, which needs more jpeg. Much like the ICR example above it’s one of those small things that demonstrate the company lacks an attention to detail and stands out like a sore thumb when conducting even basic DD on a company. They’ve also lost more than $10m per year over the last two years, the share price is down 92.81% since listing in 2016, down 45.24% over the last two years, and they’ve only made it into two new hospitals over the last 12 months.

TLDR: An absolute dog stock, even worse than Z1P.

Part 1 can be found here.