Executive Summary

Q3 2020 had no filed 10‑Q or earnings materials; the company disclosed “inability to file [the] 3rd quarter Form 10‑Q” due to severe working capital deficiency, and said additional financing or restructuring would be needed to become current .
Liquidity remains the core risk: Q2 cash was $4,075 with negative working capital of $8.1M; management explicitly stated, “We do not have sufficient cash on hand to operate” and planned to raise capital, but offered no execution certainty .
Operations and IP are intertwined with Bistromatics (PHZIO/MSK360); EWLL maintains a 15% stake, but no current business update from Bistromatics was available, limiting visibility into commercial traction in Q3 .
Revenue ramp existed in prior quarters (Q1: $14.4K; Q2: $123.8K), but losses were driven primarily by derivative liability mark‑to‑market and interest expense; Q3 results were not reported .
Near‑term stock catalysts hinge on financing/M&A progress and resumption of SEC filings; absent those, risk of continued illiquidity and limited communications persists .

What Went Well and What Went Wrong

What Went Well

Early commercialization prior to Q3: EWLL began generating revenue in Q4 2019 and recorded $14.4K in Q1 and $123.8K in Q2, showing initial monetization of PHZIO/MSK360 .
Product portfolio breadth: PHZIO, MSK360, Pre‑Hab, and RA360 expanded the addressable market across PT, MSK, and pre‑surgical pathways, supporting multi‑use cases .
Stated provider agreements and partnerships: management referenced signed partnerships (e.g., CareIQ/CorVel) and up to 16 provider agreements in the funnel, indicating potential channels for adoption .

What Went Wrong

Q3 non‑reporting: EWLL explicitly reported an inability to file its Q3 10‑Q, citing working capital deficiency; communications may be constrained without new financing, materially limiting transparency .
Liquidity and going‑concern: Q2 cash was $4,075 with negative working capital of $8.1M and management warned it lacks sufficient cash to operate, heightening solvency risk .
Capital structure pressure: Massive share issuance from debt conversions and large derivative liabilities drove substantial GAAP losses; Q2 net loss was $2.96M, with derivative liability fair‑value changes a key driver .

Financial Results

Quarterly performance (oldest → newest)

Metric	Q1 2020	Q2 2020	Q3 2020
Revenue ($USD)	$14,375	$123,780	N/A – 10‑Q not filed
Net Income ($USD)	$(3,528,599)	$(2,960,927)	N/A – 10‑Q not filed
Basic & Diluted EPS ($USD)	$(0.02)	$(0.00)	N/A – 10‑Q not filed
Operating Income / EBIT ($USD)	$(986,733)	$(534,936)	N/A – 10‑Q not filed
Net Income Margin %	−24,557.8% (calc from Rev+NI)	−2,391.9% (calc from Rev+NI)	N/A – 10‑Q not filed
EBIT Margin %	−6,864.0% (calc from Rev+EBIT)	−432.0% (calc from Rev+EBIT)	N/A – 10‑Q not filed

Notes: Margins are computed using reported GAAP revenues and losses; extremely negative margins reflect de minimis revenue relative to operating losses .

Prior-year comparison (for context)

Metric	Q1 2019	Q2 2019
Revenue ($USD)	$0	$0
Net Income ($USD)	$(1,338,471)	$(1,765,310)
Basic & Diluted EPS ($USD)	$(0.40)	$(0.01)

KPIs and operating context

KPI	Q1 2020	Q2 2020	Q3 2020
Patients treated per day (approx.)	“Nearly 1,000” (management statement)	Not quantified in filing	No update; Bistromatics business update not available
PHZIO sessions expected in 2020	300,000 (management expectation)	Not reiterated numerically	No update
Provider agreements (indicative)	“7 partnerships” referenced; also “~16 provider agreements” cited in MD&A	Continued channel focus; no precise count update	No update

Segment reporting: No segment disclosures provided in Q1/Q2 filings; operations described around PHZIO/MSK360 product silos without segment financials .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
SEC filing status	Q3 2020	Filed Q1 and Q2 10‑Qs	Inability to file Q3 10‑Q; future communications may be constrained without financing	Lowered (delay)
Capital needs	Next 12 months	“Require up to $1.6M” (Q1)	“Require up to $1.6M” (Q2)	Maintained
Financing outlook	2020	Planned capital raise by “second quarter” (Q1)	Capital raise anticipated by “third quarter” (Q2)	Deferred timing

No revenue, margin, tax, or segment guidance was provided in filings; commentary emphasized financing and operational restructuring over quantified outlook .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q‑2 and Q‑1)	Current Period (Q3 2020)	Trend
Telehealth product suite (PHZIO/MSK360/Pre‑Hab/RA360)	Emphasis on multi‑product expansion and digital PT disruption	No new detail; reliance on Bistromatics continues	Narrative paused due to non‑reporting
Channel/agreements	CareIQ/CorVel, Slingshot, StudentVIP; 7 partnerships; ~16 provider agreements	No update disclosed	Stagnant/uncertain
Liquidity/going concern	Explicit warnings; negative working capital; minimal cash	Same; Q2 cash $4,075; “do not have sufficient cash”	Deteriorating communications; financial strain persists
Corporate/management changes; Bistromatics	CEO transition; Services Agreement expired; VAR repositioning contemplated	15% ownership retained; no Bistromatics business update	Execution uncertainty
Regulatory/legal/compliance	Internal controls not effective; derivative liability accounting	Inability to file Q3 10‑Q	Heightened reporting risk

No Q3 earnings call or Q&A transcript was available; the only Q3 communication was the 8‑K disclosing non‑filing .

Management Commentary

“eWellness Healthcare Corporation (OTC: EWLL) continues to experience a high working capital deficiency resulting in the inability to file the 3rd quarter Form 10‑Q… If any additional financing, company restructuring and/or merger and acquisition opportunities are completed, the Company will endeavor to bring its SEC filings current. However, there is no guarantee…” .
“We do not have sufficient cash on hand to operate… Our ability to meet our obligations and continue to operate as a going concern is highly dependent on our ability to obtain additional financing.” (Q2 MD&A) .
On platform operations and repositioning: “PHZIO and MSK360 systems are currently operated on behalf of the Company by Bistromatics Inc. in Canada… [EWLL] will likely re‑position… as a Value Added Reseller… and [be] granted a significant percentage ownership of Bistromatics…” (Q2) .

Q&A Highlights

No Q3 earnings call or Q&A session; the only disclosure was the 8‑K describing inability to file and financing uncertainty .

Estimates Context

Wall Street consensus estimates (S&P Global) for Q3 2020 and prior quarters were unavailable for EWLL due to missing CIQ mapping; we attempted retrieval but data was not provided. If consensus becomes available, we will benchmark actuals versus the S&P Global mean. Values retrieved from S&P Global.*

Key Takeaways for Investors

The core near‑term issue is solvency: minimal cash ($4,075 in Q2) and an $8.1M negative working capital deficit; immediate financing is required to restore reporting and operational visibility .
Q3 provides no new financials; the 8‑K non‑filing and lack of Bistromatics update sharply widens the uncertainty band around revenue trajectory and execution .
Prior quarters show small revenue ramp ($14.4K → $123.8K), but GAAP losses are driven by derivative liability revaluation and financing costs—investors should focus on capital structure deleveraging and terms of any new funding .
Strategic path hinges on formalizing a new Services/VAR agreement with Bistromatics to align economics and reduce arrears; clarity on ownership, IP rights, and commercialization responsibilities is essential .
Trading implications: news sensitivity is extreme—financing/M&A announcements or resumption of SEC filings could drive outsized moves; absent that, prolonged illiquidity and dilution risk from conversions remain elevated .
Governance/compliance risk: repeated statements of ineffective disclosure controls and now non‑filing increase regulatory and reputational risk; monitor any remediation plans .
Thesis consideration: without credible capital and operating updates, the equity is a binary setup tied to financing and restructuring outcomes rather than fundamentals.

Appendix: Additional Context

Balance sheet pressure (Q2): derivative liability $4.30M; convertible debt (net of discount) $1.98M; total liabilities $8.27M; total assets $0.18M .
Share issuance from conversions (H1’20): 7.84B common shares issued for debt conversions; preferred shares vesting tied to deferred compensation programs .
Internal controls: management concluded disclosure controls were not effective in Q1 and Q2 .

Citations:
EWLL 8‑K (Item 2.02) dated 2020‑12‑21
EWLL Q2 2020 10‑Q – Financial Statements
EWLL Q2 2020 10‑Q – Derivative Valuation
EWLL Q2 2020 10‑Q – MD&A Results of Operations
EWLL Q2 2020 10‑Q – Liquidity & Capital Resources
EWLL Q2 2020 10‑Q – Controls and Procedures
EWLL Q1 2020 10‑Q – Financial Statements
EWLL Q1 2020 10‑Q – Statement of Cash Flows and Note 1 (operating KPIs)
EWLL Q1 2020 10‑Q – MD&A Overview
EWLL Q1 2020 10‑Q – MD&A market/product discussion
EWLL Q1 2020 10‑Q – Provider agreements list
EWLL Q1 2020 10‑Q – Controls and Procedures

Disclaimer: Estimates were unavailable from S&P Global at the time of this analysis due to missing CIQ mapping. Values retrieved from S&P Global.*

eWELLNESS HEALTHCARE Corp (EWLL)·Q3 2020 Earnings Summary