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HealthLynked Corp (HLYK)·Q1 2020 Earnings Summary

Executive Summary

  • Q1 2020 revenue rose to $1.34M, up from ~$1.17M in both Q4 and Q3 2019, driven primarily by Naples Center for Functional Medicine (NCFM) ($0.85M) and the launch of Bridging the Gap Physical Therapy (BTG) ($0.08M); net loss narrowed to $0.58M from $1.13M in Q3 2019 .
  • No 8‑K Item 2.02 press release specific to Q1 2020 and no earnings call transcript were available in the document set; the April 1, 2020 8‑K furnished FY19/Q4 results and COVID-19 app traction, and the 10‑Q provided the full quarterly financials -.
  • Consensus estimates were unavailable via S&P Global for HLYK; comparisons to Street were not possible (we attempted to retrieve Q1 2020 EPS and revenue estimates but data was unavailable) [GetEstimates error].
  • Near-term catalysts and risks: rapid COVID-19 app adoption (1.65M downloads in ~3 weeks), pending CHM/AHP ACO acquisition, and PPP loans post-quarter provide potential support; however, going‑concern risk persists with $3.75M working capital deficit and reliance on external financing .

What Went Well and What Went Wrong

  • What Went Well

    • Health services growth: Q1 revenue of $1.34M vs. $0.46M in Q1 2019, with contributions from NCFM ($846k) and BTG ($83k) .
    • Operating leverage improved: operating loss narrowed to $0.53M from $0.82M in Q1 2019; G&A fell 26% YoY reflecting cost controls in Digital Healthcare .
    • Engagement catalyst: CEO highlighted COVID-19 tracker as the #1 trending medical app on Apple’s App Store (~1.65M downloads; ~80k chat users) and strategic role of the PAH technology in social distancing—supporting brand visibility and network adoption .

  • What Went Wrong

    • Ongoing liquidity pressure: working capital deficit of $3.75M, accumulated deficit of $16.61M, and going‑concern emphasis; continued dependence on equity, convertible notes, and related‑party loans .
    • Financing frictions: Q1 saw $0.47M loss on debt extinguishment and $0.29M in discount amortization tied to convertible notes activity; costly capital structure limits flexibility .
    • Lack of formal guidance/call: no Q1 2020 guidance disclosed and no earnings call transcript available, constraining visibility into trajectory and Street expectations -.

Financial Results

MetricQ3 2019Q4 2019Q1 2020
Revenue ($)$1,172,561 $1,172,878 $1,336,940
Operating Income (Loss) ($)$(815,691) $(871,882) $(527,634)
Net Income (Loss) ($)$(1,125,280) $(2,463,028) $(580,216)
Diluted EPS ($)$(0.01) —$(0.01)

Segment revenue – Q1 2020

SegmentRevenue ($)
Health Services$1,336,940
Digital Healthcare (eliminations on consolidation)$0 (segment billed $1,356 internally, eliminated)

Additional Q1 2020 drivers and costs

  • Revenue mix: NCFM $846,272; BTG $82,738; NWC down $57,061 YoY .
  • G&A: $510,976 (down from $691,802 in Q1 2019) .
  • Cash: $204,266 at March 31, 2020 .

Estimates vs. actuals (S&P Global)

  • Consensus revenue/EPS for Q1 2020: unavailable; we attempted to retrieve “Revenue Consensus Mean” and “Primary EPS Consensus Mean,” but data was not available via S&P Global for HLYK during this request window. As a result, no beat/miss assessment can be provided [GetEstimates error].

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
———No formal quantitative guidance disclosed in Q1 2020 filings/8‑K— -

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2: Q3 2019; Q-1: Q4 2019)Current Period (Q1 2020)Trend
Digital engagement/COVID-19 app— in Q3; Q4 press release (filed 4/1) highlights #1 trending COVID-19 app, ~1.65M downloads, ~80k chat users Continued emphasis on network/technology; operational focus in filings; app traction remains a brand catalyst Positive visibility, strategic optionality
M&A/ACO expansionNCFM acquisition detailed; segment revenue mix shifting to Health Services Signed merger to acquire CHM/AHP to create ACO division (pending closing) Broadening into value-based care (ACO)
Cost structure & G&AElevated in Q3 from financing/derivatives; Digital Healthcare costs meaningful G&A down 26% YoY; shift to indirect sales; operating loss narrows Improving operating discipline
Liquidity/financingReliance on converts; going-concern raised Going-concern persists; more convert issuance/repayments; PPP loans subsequent to quarter Still a key risk; added temporary relief
Physician/practice operationsNCFM integration; NWC staffing turnover cited historically BTG launched; NWC down YoY in Q1 Mixed: new practices offset legacy softness

Management Commentary

  • “Our company grew 131% in the last quarter… The HealthLynked COVID-19 tracker has been the #1 trending most downloaded medical app in the Apple App Store with over approximately 1.65 million downloads in the past 3 weeks and approximately 80,000 users in the COVID-19 chat.” — Michael Dent, M.D., Chairman & CEO .
  • On operating model and PAH: “Our patient access hub ‘PAH’ technology allows patients to check in from their smart phones to maintain social distancing and prevent the spread of COVID-19.” .
  • Liquidity posture: Management disclosed going‑concern uncertainties and plans to fund operations via equity, convertible notes, related‑party loans, and improving profitability; working capital deficit was $3.75M as of March 31, 2020 .

Q&A Highlights

  • No earnings call transcript was available for Q1 2020 in the document set; therefore, there are no Q&A themes to summarize -.

Estimates Context

  • Wall Street consensus (S&P Global) for Q1 2020 revenue and EPS was unavailable for HLYK during our query window, so we cannot assess beats/misses or implied revisions at this time [GetEstimates error].
  • Where to adjust estimates: Given revenue contribution disclosures (NCFM, BTG) and reduced G&A, models should reflect higher Health Services mix and sustained operating efficiency; financing costs and debt extinguishment losses remained elevated in Q1 and may normalize if refinancing/repayment cadence slows .

Key Takeaways for Investors

  • Execution improving in Health Services: NCFM and BTG are driving growth and narrowing operating loss; monitor sustainability as elective care normalizes post-COVID disruptions .
  • Strategic optionality from CHM/AHP ACO deal: If closed and integrated, it opens a value‑based care revenue stream and potential flywheel for Network adoption .
  • COVID-19 app traction provides marketing leverage at low cost, potentially accelerating provider/patient onboarding to the HealthLynked Network .
  • Liquidity remains the gating factor: Going‑concern, heavy use of converts, and related‑party debt underscore dilution/default risks; PPP loans after quarter‑end provide temporary relief but do not replace durable cash generation .
  • No formal guidance/call limits visibility; near-term trading likely tied to financing updates, ACO transaction milestones, and incremental disclosures on Network monetization -.
  • For modeling: bake in $1.34M quarterly revenue baseline with Health Services mix, continued operating discipline in G&A, and episodic financing charges tied to convert activity .

Supporting documents reviewed in full:

  • Q1 2020 Form 10‑Q (filed May 15, 2020) -
  • FY 2019 Form 10‑K (filed Mar 30, 2020), including operational context -
  • 8‑K (filed Apr 1, 2020) furnishing FY19/Q4 press release and COVID‑19 app metrics -
  • Q3 2019 Form 10‑Q (filed Nov 14, 2019) for trend analysis -