Q2 2024 Ontrak Inc Earnings Call

Speaker Change: Good day, and thank you for standing by. Welcome to the Ontrak Health second quarter 24 earnings call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session.

Operator: At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone, and you will then hear an automated message advising you what to say. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Ryan Halsted.

Speaker Change: To ask a question during the session, you will need to press star one one on your telephone And you will then hear an automated message advising your hand is raised

Speaker Change: To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Ryan Halsted.

Ryan Halsted: Thank you, operator. And thank you all for participating in today's call. Joining the call are Brandon LaVerne, Chief Executive Officer and Chief Operating Officer, Mary Lou Osborne, President and Chief Commercial Officer, and James Park, Chief Financial Officer. Earlier today, Ontrak released financial results for the quarter ended June 30, 2024.

Speaker Change: Please go ahead.

Ryan Halsted: Thank you, Operator, and thank you all for participating in today's call. Joining the call are Brandon LaVerne, Chief Executive Officer and Chief Operating Officer, Mary Lou Osborne, President and Chief Commercial Officer, and James Park, Chief Financial Officer.

Speaker Change: Earlier today, Ontrak released financial results for the quarter ended June 30, 2024. A copy of the press release is available on the company's website.

Ryan Halsted: A copy of the press release is available on the company's website. Before we begin, I would like to make the following remarks concerning forward with these statements. All statements in this conference call other than historical facts are forward-looking statements; the words anticipate, the reuse, estimate. Specks, Intend, Guidance, Confidence, Targets, Projects, and some other expressions typically are used to identify forward-looking stakeholders. These forward-width statements are not guarantees of future performance that may involve us in our subject to certain risks and uncertainties.

Ryan Halsted: Other factors that may affect contract business, financial condition, and other operating results, which include, but are not limited to, the risk factors described in the risk factor section of the form 10-day and form 10-Q as filed with the SEC. Therefore, actual outcomes and results may differ materially from those expressed or implied by these forward-looking statements. The Company expressly disclaims any intent or obligation to update these forward listings. With that said, I'd like to turn the call over to Brandon.

Speaker Change: Before we begin, I would like to make the following remarks concerning forward-looking statements.

Speaker Change: All statements in this conference call, other than historical facts, are forward-looking statements.

Speaker Change: The words anticipate, believes, estimates,

Speaker Change: expects, intends, guidance, confidence, targets, projects, and some other expressions typically are used to identify forward-looking statements.

Speaker Change: These forward-looking statements are not guarantees of future performance, but may involve and are subject to certain risks and uncertainties. Other factors that may affect a contract's business, financial condition, and other operating results which include, but are not limited to, the risk factors described in the risk factors section of the Form 10-K and Form 10-Q as filed with the SEC.

Speaker Change: Therefore, actual outcomes and results may differ materially from those expressed or implied by these forward-looking statements.

Speaker Change: expressly disclaims any intent or obligation to update these forward-looking statements. With that, I'd like to turn the call over to Brandon.

Brandon LaVerne: Thank you, Ryan, and thank you, everyone, for being on our call today.

Brandon LaVerne: I'd like to start with the exciting news we shared earlier today regarding the signing of a contract with our newest customer, a prestigious regional health plan in the Northeast.

Brandon LaVerne: Our initial analysis of their enrollment and eligibility data suggests an outreach pool for Whole Health Plus that will approximately double our current outreach pool once launched, while also providing for our Engage solution in support of thousands of other members with behavioral health needs.

Brandon LaVerne: This two-year agreement is yet another opportunity to collaborate with a new customer and deliver a recently enhanced advanced engagement system. We will also incorporate the newly adopted comprehensive healthcare integration framework that we announced last quarter. As Mary Little discussed in more detail, our pipeline of prospects is progressing nicely through our sales sector. With Community Care Plan's launch last quarter and this new customer expected to launch around the end of this quarter, the proven clinical and financial outcomes that our solutions deliver are getting traction among our customers and prospects and their respective members. At the same time, many Medicaid plans face funding and utilization challenges and are still dealing with the fallout of re-determination post-pandemic.

Brandon LaVerne: This two-year agreement is yet another opportunity to collaborate with a new customer and deliver our recently enhanced Advanced Engagement System. We will also incorporate the newly adopted Comprehensive Healthcare Integration Framework that we announced last quarter.

Brandon LaVerne: As Mary Lou will discuss in more detail, our pipeline of prospects is progressing nicely through our sales cycle.

Mary Lou: With Community Care Plan launched last quarter, and this new customer expected to launch around the end of this quarter, the proven clinical and financial outcomes that our solutions deliver are gaining traction among our customers and prospects and their respective members.

Mary Lou: At the same time, many Medicaid plans face funding and utilization challenges and are still dealing with the fallout of redeterminations post-pandemic.

Brandon LaVerne: Our solution helps address these problems for our customers. For example, we just completed and announced our final study result with an existing Medicaid customer that demonstrated a statistically significant difference in savings of $721 per member per month of all-cause medical costs over 24 full months for members in our program. Additionally, the study resulted in a statistically significant difference in medical cost savings of $508 per member per month for members that did not graduate from our program.

Mary Lou: Our solution helps address these problems for our customers.

Mary Lou: For example, we just completed and announced our final study result with an existing Medicaid customer that demonstrated statistically significant difference in difference savings of $721 per member per month of all-cause medical costs over 24 full months for members in our program

Mary Lou: Additionally, the study resulted in statistically significant difference in difference medical cost savings of five hundred and eight dollars per member per month for members that did not graduate from our program.

Brandon LaVerne: These results solidify the strength of our holistic approach and demonstrate our ability to make an impact on underserved populations in a short enrollment period, driving results for our customers. We are at an inflection point where significant growth in our prospects is beginning to convert to customers, and existing customers are seeking expansion. We are prepared for the company to operate at scale. First, our technology is designed to be flexible, allowing for seamless integration with the diverse systems and technological infrastructure that our customers may use.

Mary Lou: These results solidify the strength of our holistic approach and demonstrate our ability to make an impact on underserved populations in a short enrollment period, driving results for our customers.

Speaker Change: We're at an inflection point where significant growth in our prospects is beginning to convert to customers and existing customers are seeking expansion.

Mary Lou: We are prepared for the company to operate at scale. First, our technology is designed to be flexible, allowing for seamless integration with the diverse systems and technological infrastructure that our customers may use.

Brandon LaVerne: We have incorporated AI components and other advanced systems throughout our entire platform. This comprehensive integration enables us to effectively combine behavioral and physical health services, facilitating the implementation of value-based care models and enhancing patient engagement. For example, the mental health digital twin technology that we announced earlier this quarter seamlessly fuses human empathy with data-driven insights to help integrate our care delivery. Second, we adopted a comprehensive healthcare integration framework that prioritizes clinical and financial outcomes in a value-based care approach.

Mary Lou: We have incorporated AI components and other advanced systems throughout our entire platform.

Speaker Change: This comprehensive integration enables us to effectively combine behavioral and physical health services, facilitating the implementation of value-based care models, and enhancing patient engagement.

Speaker Change: For example, the Mental Health Digital Twin technology that we announced earlier this quarter seamlessly fuses human empathy with data-driven insights to help integrate our care delivery.

Mary Lou: Second, we adopted the Comprehensive Healthcare Integration Framework, which prioritizes clinical and financial outcomes in our value-based care approach. This ensures tangible benefits for the members we serve, and ultimately for our health plan customers.

Brandon LaVerne: This ensures tangible benefits for the members we serve and ultimately for our health plan customers. Third, we have improved the efficiency of how our frontline staff engage with and care for our members with the integration of various system tools such as our next best action engine to prioritize and organize tasks across caseloads, as well as leveraging AI to summarize completed calls. These and numerous other operational enhancements implemented over the past year and several more to come.

Mary Lou: Third, we have improved the efficiency and how our frontline staff engage with and care for our members with the integration of various system tools such as our next best action engine to prioritize and organize tasks across caseloads as well as leveraging AI to summarize completed calls.

Mary Lou: With these and numerous other operational enhancements implemented over the past year and several more to come, we believe we are well equipped to operate at scale across all geographic markets and business lines efficiently.

Speaker Change: Now I'd like to turn the call over to Mary Lou Osborne, our President and Chief Commercial Officer, who will speak more about our pipeline progress.

Mary Osborne: Thanks, Brandon. As Brandon mentioned, and we announced this morning, for the second quarter in a row, I'm excited to share that we signed a new Health Plan customer. Our focus with this newest customer is on improving access to quality behavioral health care that is integrated with physical care, while also providing support and resources to empower members to achieve their health and wellness goals. We are working with the customer to go live over the next 60 days, launching our Whole Health Plus program and our Engage coaching-only solution to their members in multiple lines of business, including Medicaid, HARP, and Commercial.

Speaker Change: Thanks, Brandon. As Brandon mentioned, and we announced this morning, for the second quarter in a row, I'm excited to share that we've signed a new health plan customer.

Speaker Change: Our focus with this newest customer is on improving access to quality behavioral health care that integrates with physical care, while also providing support and resources to empower members in achieving their health and wellness goals.

Speaker Change: We are working with the customer to go live over the next 60 days, launching our Whole Health Plus program and our Engage coaching-only solution to their members in multiple lines of businesses, including Medicaid, HARP, and commercial.

Mary Osborne: As a reminder, our Whole Health Plus solution uses advanced data analytics and risk assessment tools to identify high-cost complex members with chronic comorbidities and underlying but unaddressed behavioral health conditions. Once identified, members are proactively engaged through a unique blend of human interaction combined with augmented intelligence and offered personal care coaching support. Our advanced engagement system, coupled with an evidence-based clinical model, provides care coaching tailored to each member's specific circumstances, including behavioral health provider visits, as needed, and is designed to improve clinical outcomes and produce significant savings.

Speaker Change: As a reminder, our Whole Health Plus solution uses advanced data analytics and risk assessment tools to identify high-cost, complex members with chronic comorbidities and underlying but unaddressed behavioral health conditions.

Speaker Change: Once identified, members are proactively engaged through a unique blend of human interaction combined with augmented intelligence and offered personal care coaching support.

Speaker Change: Our advanced engagement system, coupled with an evidence-based clinical model, provides care coaching tailored to each member's specific circumstances, including behavioral health provider visits, as needed, and is designed to improve clinical outcomes and produce significant savings.

Mary Osborne: Our engaged solution is a coaching-specific alternative for members not eligible for whole health plus who would benefit from ongoing care coaching to help them address physical and behavioral health challenges and social needs without the need for provider intervention.

Speaker Change: Our ENGAGE solution is a coaching-specific alternative for members not eligible for Whole Health Plus who would benefit from ongoing care coaching to help them address physical and behavioral health challenges and social needs without the need for provider intervention.

Mary Osborne: While there is no guarantee of future expansions, we expect to achieve the desired clinical and financial outcomes to put ourselves in a position for future growth with this customer. In addition to this exciting new customer contract, we remain in the final contracting phase with another prominent health system in the West, representing approximately 80,000 Medicare Advantage lives. We have received approval of our financial proposal, and the statement of work is in final review.

Speaker Change: While there is no guarantee of future expansions, we expect to achieve the desired clinical and financial outcomes to put ourselves in a position for future growth with this customer.

Speaker Change: In addition to this exciting new customer contract, we remain in the final contracting phase with another prominent health system in the West, representing approximately 80,000 Medicare Advantage lives.

Speaker Change: We have received approval of our financial proposal and the statement of work is in final review.

James Park: This health system is seeking to start our engagement with their Medicare Advantage members, and once clinical and financial outcomes are achieved, the intent is to expand the partnership to a larger membership cohort across multiple lines of business representing an opportunity of a 1,000,000-million-lot. Our pipeline remains strong, with approximately 26 active prospects representing about 15 million members across all lines of business. Of these, there are three, in addition to the one I mentioned earlier, that we feel have moved near the bottom of our pipeline funnel, representing over 500,000 lives in government lines of business.

Speaker Change: This health system is seeking to start our engagement for their Medicare Advantage members and once clinical and financial outcomes are achieved, the intent is to expand the partnership to a large membership cohort across multiple lines of business representing an opportunity of a 1 million Thank you very much.

Speaker Change: Our pipeline remains strong with approximately 26 active prospects representing about 15 million members across all lines of business.

Speaker Change: Of these, there are three in addition to the one I mentioned earlier that we feel have moved near the bottom of our pipeline funnel, representing over 500,000 lives in government lines of business.

James Park: Finally, we are happy with our continued progress in expanding current customer relationships. Our implementation with Community Care Plan has been successful, and we are now preparing to work with them on plans for their expanded membership in 2025 following the award of additional regions across the state of Florida. We also continue to have productive conversations with each of our other existing customers on expansion opportunities into additional lines of business. Now, I would like to turn the call over to our Chief Financial Officer, James Park.

Speaker Change: Finally, we are happy with our continued progress in expanding current customer relationships. Our implementation with Community Care Plan has been successful, and we are now preparing to work with them on plans for their expanded membership in 2025 following the award of additional regions across the state of Florida.

Speaker Change: We also continue to have productive conversations with each of our other existing customers on expansion opportunities into additional lines of business.

Brandon LaVerne: Thank you, Ryan, and thank you everyone for being on our call today. I'd like to start with the exciting news we shared earlier today regarding the signing of a contract with our newest customer, a prestigious regional health plan in the Northeast. Our initial analysis of their enrollment and eligibility data suggests an outreach pool for Whole Health Plus that will approximately double our current outreach pool once launched, while also providing for our Engage solution in support of thousands of other members with behavioral health needs.

Speaker Change: And now, I would like to turn the call over to our Chief Financial Officer, James Park.

James Park: During the second quarter, we recorded revenue of $2.5 million, a 17% year-over-year decrease due primarily to a 7% decrease in total average and real members during the second quarter of 2024 compared to the same period in 2023. At the beginning of the quarter, we had 1,521 year-old members and ended with 1,752 at the end of the quarter. For a simple average of 1,637, Of the enrolled members, 58 are members enrolled in our engaged program, which we launched this quarter with our new customer.

James Park: Thanks, Mary Lou.

James Park: During the second quarter, we recorded revenue of $2.5 million, a 17% year-over-year decrease due primarily to a 7% decrease in total average enrolled members during the second quarter of 2024 compared to the same period in 2023.

Speaker Change: At the beginning of the quarter we had 1,521 year old members and ended with 1,752 at the end of the quarter for a simple average of 1,637.

James Park: Of the enrolled members, 58 are members enrolled in our ENGAGE program, which we launched this quarter with our new customer.

James Park: This equates to a revenue of about $463 per health plan enrolled member per month for the quarter, a decrease from $504 per health plan enrollment per month in Q1 of 2024 and a decrease from $528 in Q2 of 2023. The decrease is primarily due to a large percentage of our immune members being enrolled towards the end of the quarter, as well as the addition of engaged members, which will have a lower revenue partner. Do the remainder of the year.

Speaker Change: This equates to a revenue of about $463 per health sign rule member per month for the quarter. A decrease of from $500 per health sign rule member per month in Q1 of 2024 and a decrease from 528 in Q2 of 2023.

Speaker Change: The decrease is primarily due to a large percentage of our human members being enrolled towards the end of the quarter, as well as the addition of engaged members, which will have a lower revenue per annual number.

James Park: We expect a per-number per month revenue to be lower on a year over year basis as we integrate new pricing strategies and increase the mix of engagement. Regarding our Q2 member metrics, we enrolled a total of 881 members during the quarter compared to 925 in Q1 of 2024 and 1,091 in Q2 of 2023. Right in the Q2 group, Rossin Rona Spire Outreach School, which averaged 5,764 for the quarter, it analyzed to a 61% enrollment rate, compared to 108% enrollment rate in Q1 of 2024 and 43% in Q2 of 2020.

Speaker Change: Through the remainder of the year, we expect the per-member per-month revenue to be lower on a year-over-year basis as we integrate new pricing strategies and increase the mix of engaged members.

Speaker Change: Regarding our Q2 member metrics, we enrolled a total of 881 members during the quarter compared to 925 in Q1 of 2024 and 1,091 in Q2 of 2023.

Speaker Change: Dividing Q2 growth enrollments by our outreach goal, which averaged 5,764 for the quarter, it annualizes to a 61% enrollment rate, compared to 108% enrollment rate in Q1 of 2024 and 43% of Q2 of 2023.

James Park: We ended the quarter with an outreach pool of 8,100, and therefore expect member enrollments to increase nicely in the second half of the year as compared to the prior year and sequentially. Our average monthly disadvantage rate was 10% in the current quarter, compared to 22% in 2021 of 2024 and 12% in Q2 of 2023. The prior quarter had higher disenrollment due to an expiring customer contract and would otherwise have normalized at 11%.

Speaker Change: We ended the quarter with an outreach pool of 8,100, and therefore expect member enrollments to increase nicely in the second half of the year as compared to the prior year and sequentially.

Speaker Change: Our average monthly disenrollment rate was 10% in the current quarter, compared to 22% in Q1 of 2024 and 12% in Q2 of 2023.

Speaker Change: The prior quarter at higher distance enrollment due to inspiring customer contract and would otherwise normalize at 11%.

James Park: Further, we graduated 178 enrolled members during the quarter. This equates to about 12% of the enrolled members in the program at the beginning of the quarter, which is slowly higher than prior periods. The impact of all this was a net enrollment increase of 231 members during the quarter.

Speaker Change: Further, we graduate at 178 November as during the quarter.

James Park: Our gross margin for the first quarter was 65.7%, which increased slightly from 63.6% in Q1 of 2024 and decreased from 72.8% in the second quarter of last year. We expect our gross margins to remain at current levels, but they can slightly decrease in periods when we launch new customer expansions as we hire member-facing employees in advance. Turning to the balance sheet and cash flow, our cash flow from operations in the second quarter was negative $4.5 million, compared to negative $5.1 million in the second quarter of last year and negative $3.3 million in Q1 of 2024.

James Park: We ended the quarter with cash of $7.3 million, down from $9.7 million at the end of last year. As previously announced, in Q1 of 2024, we completed an amendment to the Keep Well Agreement that gives us access to up to $50 million of senior secured demand notes, which is set up as monthly drawdowns over the next year, subject to a proof at the time of the draw.

Speaker Change: As previously announced in Q1 of 2024, we completed an amendment to the keep whole agreement that gives us access to up to $50 million senior secured demand nodes, which is set up us monthly dropdowns over the next year subject to approval at the time of a draw.

James Park: During the quarter, we drew down a total of $4.5 million of demand notes, leaving $10.5 million available for future draws subject to approval. In addition, during the second quarter, we received cash proceeds of $2 million from the sale of Lawrence, which continues to build our capital to execute our pact. While we can't predict if and when the remaining ones will be exercised, the total amount of ones at their exercise price would equate to an additional $15.9 million in cash.

Speaker Change: During the quarter, we drew down a total of $4 5 million booked.

Speaker Change: Demand notes, leaving $10 $5 million available for future draws subject to approval.

Speaker Change: In addition, during the second quarter, we received cash proceeds of $2 million from the exercise of warrants, which continues to build our capital to execute on our pipeline.

Speaker Change: While we cannot predict if and when the remaining warrants will be exercised the total amount of warrants at an exercise price would equate to an additional 15.

Speaker Change: $9 million in cash.

James Park: For Q3 2024, we anticipate revenues in the range of $2.4 million and $2.8 million, which doesn't include any revenue for the new customer we discussed, as we expect new member enrollments for these customers to commence in early Q4. To provide a high-level view of our revenue model, applying our historical percentage of members that are typically eligible for our program, enrollment rates, average enrollment period, and other assumptions in line with our current and past customers.

Speaker Change: For Q3, 2024, we anticipate revenues in the range of two $4 million and $2 $8 million, which doesn't include any revenue source of new customer we discussed as we expect new member enrollments for those customers to commence in early Q4.

Speaker Change: To provide high level view of our revenue model applying our historical percentage of members that are typically eligible for our program enrollment rates average enrollment period and all of our assumptions in line with our current and past customers.

Speaker Change: That equates to approximately 15% to $20 annual revenue per health plan member for the total population that we target for <unk> plus.

Speaker Change: For example.

Speaker Change: 100000, total lives would equate to approximately $1 5 million.

Speaker Change: To $2 million of annual recurring revenue for our <unk> plus product.

James Park: It equates to approximately $16-$20 of annual revenue per health plan member for the total population that we target for a whole lot. For example, a customer with 100,000 total lives would equate to approximately $1.5 million to $2 million of annual recurring revenue for our whole Health Plus product. Now we will open up for questions. Thank you.

Speaker Change: Now we will open up for questions. Thank you.

Operator: Thank you. At this time, we will conduct the question and answer session. Please stand by while we compile the Q&A rough. The first question comes from the line of Jonathan Aschoff of Roth Capital Partners. Your line is now open.

Speaker Change: Thank you at this time, we will conduct a question and answer session. Please standby, while we compile the Q&A roster.

Speaker Change: The first question comes from the line of Jonathan Asia.

Jonathan Asia: Ross Capital Partners. Your line is now open.

Jonathan Asia: Thank you good afternoon, and congrats on the deal you announced in the middle of the day.

Speaker Change: The questions I have I was just kind of quickly do you expect quarter over quarter revenue growth starting in the fourth quarter or is that fourth quarter is still at the same risk of having the exact same revenue guidance that you gave for last quarter and currently just gave for this quarter.

Brandon LaVerne: Jonathan, thanks for the question. We do expect revenue contribution to start in Q4, but it will still be ramping up at that time, so the foray will likely start kicking in earlier next year.

Speaker Change: Hey, Jonathan Thanks for the question.

Speaker Change: We do expect revenue contribution to start in Q4, but it will still be ramping up at that time.

Speaker Change: Full rate will likely start to kick in.

Speaker Change: Earlier next year.

Jonathan Aschoff: Okay, let's see, you said you had $4.5 million that you drew down from Keepwell, and you said there was $10.5 million left to withdraw. Is that accurate?

Speaker Change: Okay.

Speaker Change: Let's see you said that you had $4 5 million that you drew down from Keith will and you said there was $10 5 million left left withdrawal is that accurate.

Speaker Change: That's correct, yes, the original amount was $15 million in total.

James Park: and James Park. Thank you. Thank you. Okay, and so let's see, what is your pro-format deck? to thank everybody.

Speaker Change: Okay.

Speaker Change: What is your what is your pro forma debt.

Speaker Change: Like 66 something million yes.

Speaker Change: Okay.

Speaker Change: $6 7 million straight from the balance sheet nothing nothing extra after the quarter or what is it pro forma including.

Speaker Change: Since July 1st drawdown.

Jonathan Aschoff: Six-and-a-half, and a little bit of change for interest that we've experienced.

Speaker Change: $6 five a little bit of change for interest, though we've accrued.

Jonathan Aschoff: Okay, I have a total number of outstanding warnings.

Speaker Change: Okay, how about the <unk>.

Speaker Change: Total number of outstanding warrants.

Operator: and Oral Ops Danny. Uh, that's, Shoe-hundredons, safety-knowing off-way.

Speaker Change: Overall outstanding.

Speaker Change: That's.

Speaker Change: $250 million roughly.

Speaker Change: Okay.

Jonathan Aschoff: How many future prospective clients do you have now? I had in a prior note that you had 26. Assuming we cannot... 25, is it more? Yeah, we are at 26. Hi Jonathan, it's Mary LaVerne. We have 26 active prospects and about 15 million lives associated with that, and so as our new customers come off the list, we're adding new customers all the time, the Crossback race. Um, have you already started reaching out to CCP's eligible members in Florida, or have you not?

Speaker Change: That's close enough.

Speaker Change: Many future prospective clients that you have now had in our prior note that you had 26 I'm, assuming we can not one off for the northeast deal that you did but.

Speaker Change: Do you have 25 or is it more now.

Speaker Change: We are at 26.

Speaker Change: Hi, Jonathan It's Mary the last 126 active prospects and about $15 million.

Speaker Change: Lines associated with that.

Speaker Change: And so as our new as our new customers coming off the list, we're adding new customers all the time.

Speaker Change: Yes have you already started reaching out to CCP is eligible members in Florida or have you not yet started doing that.

Speaker Change: Yeah.

Mary Osborne: Yes, we have, and I'll ask James to jump in on this, but also Jonathan, just so you know. We had a very successful implementation. We also got great satisfaction results from our new customer. And as you know, we talked about this in our previous earnings call, our customer was awarded five regions in the most recent Medicaid RFP. They are projected to grow, you know, above where they are currently. So that's some of the background, and I'll turn it over to James to talk more.

Speaker Change: Yes, we have.

Speaker Change: And I'll ask James to.

Speaker Change: Jump in on this but also Jonathan just so you know.

James Park: We had a very successful implementation.

James Park: We also got great satisfaction results.

Speaker Change: Our new customer.

Speaker Change: And as you know.

Jonathan Asia: And we talked about this in our previous earnings call. Our customer was awarded five regions in the most recent Medicaid RFP. So.

Speaker Change: They are projected to grow.

Speaker Change: Above where they are currently so that's some of the background and I'll turn it over to James to talk Mark actually right before you do that.

Mary Osborne: David Elis. Bill at one, or is it two or three or anywhere from four to five? Yeah, they are currently in one region, and they were awarded five regions, including the one they have, and that will start in January 2025.

Speaker Change: CCP is still at one region or is it two or three yes.

James Park: Yes. They are currently in one region and they were awarded five regions, including the one they have.

James Park: And that will start January 2025.

Operator: Start rowing towards five.

James Park: Yes, I'll start growing towards five one at a time.

Operator: It'll It'll begin January 1, and it will be available in five regions across the state of Florida.

James Park: It will begin January one.

James Park: They will be live in five regions across the sector. Thank you.

Operator: and then James.

James Park: Yes.

James Park: And then James.

James Park: So yeah, and we did successfully launch and start enrolling members. So, you know, I don't think we disclosed exactly how many, but, you know, it was a success.

James Park: So yes, we did successfully launch started enrolling members.

Speaker Change: So I don't think we disclose exactly how many but.

James Park: There was also a successful launch.

James Park: Okay.

Speaker Change: And I would just add we're pretty much on forecast with with the the members we enrolled.

James Park: Both in whole health, plus as well as the engage solution. So.

James Park: Both of those are launched and so far so good very successful.

Speaker Change: Okay, and lastly can you help me out with pro forma cash seven three plus what have you raised since the end of the quarter.

Jonathan Aschoff: Sorry, are you asking how much we have?

Speaker Change: Sorry, you're asking how much we have.

Jonathan Aschoff: How much cash did you raise since the end of the quarter? You know, to add to 7.3 gives you a total that is pro-4.

Speaker Change: How much cash did you raise since the end of the quarter to add to seven three gives you a total that is pro forma cash.

Operator: St. Thomas, St. Thomas.

Speaker Change: Well, we have accessed 10 million of the.

James Park: Keep although we still have access to.

Speaker Change: The $15 nine knowing that we have access to appropriate warrants. So we're in.

Speaker Change: Active discussions to.

Speaker Change: We're putting up the capital for the quarter remarks.

Speaker Change: As well okay.

Jonathan Aschoff: Thank you very much, guys.

Speaker Change: Alright of resources currently.

Speaker Change: Thank you very much guys.

Jonathan Asia: Thank you Jonathan.

Operator: You. This concludes the question and answer session. I would now like to turn it back to Brandon LaVerne, CEO, for closing remarks.

Speaker Change: Thank you.

Speaker Change: This concludes the question and answer session I would now like to turn it back to Brandon Laverne CEO for closing remarks.

Brandon LaVerne: Alright, thank you, and thank you everyone for joining our call with us today. I hope you have a great day.

Brandon LaVerne: Alright, Thank you and thank you everyone for joining our call with US today I Hope you have a great day.

Operator: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

Speaker Change: Thank you for your participation in today's conference. This does conclude the program you may now disconnect.

Speaker Change: Okay.

Speaker Change: [music].

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: Okay.

James Park: and I would just add that we're pretty much on forecast with the members we enrolled, both in health class as well as the engage solution. Both of those have been launched and are so far very good, very successful, and lastly, can you help me out with proof?

Jonathan Aschoff: Thank you. Good afternoon, and I congratulate you on some of the wheel you announced in the middle of the day. The questions I have are, you know, quarter over quarter revenue growth, you know, starting in the fourth quarter, or is that fourth quarter still at the same risk of having the exact same revenue guidance that you gave for last quarter and currently just gave for this quarter.

James Park: Well, we have the access, the 10 million other people that we still have access to, the $15.9 million that we have access to through the warrants. So we're in active discussions to open up the capital for vote for those amounts, as well as, you know, other sources currently.

Brandon LaVerne: We believe we are well equipped to operate at scale across all geographic markets and business lines decisions. Now I'd like to turn the call over to Mary Du Osborne, our president and chief commercial officer, who will speak more about our pipeline progress.