Name: HealthLynked Corp Q2 2017 Earnings Call
Start: 2017-08-15T00:00:00.000Z

Executive Summary

Revenue of $0.517M rose 3% year over year and approximately 9% quarter over quarter, driven by stronger performance at Naples Women’s Center (NWC) and early sales efforts for the HealthLynked Network .
Operating loss widened to $0.483M (vs. $0.183M last year; $0.387M in Q1) due to ~$0.125M of public filing-related costs and ~$0.150M incremental salaries/benefits tied to network growth and public listing readiness .
Net loss was $0.561M and EPS was $(0.01), pressured by $0.059M amortization of debt discounts and $0.020M interest expense on convertible notes and related-party debt .
Liquidity remains tight: cash of $19k, working capital deficit of ~$0.958M, and “going concern” language; management intends to fund operations via an up-to-$3M ELOC, equity sales, and related-party loans, though low trading volumes may limit ELOC capacity near term .
Catalysts: OTCQB listing (May 10), test launch in three Florida markets (June), sales team buildout, and investor webcast (July 13) supporting awareness and commercial ramp .

What Went Well and What Went Wrong

“NWC... had a very strong quarter with $516,798 in revenue compared to last quarter of $476,118 in revenue - a 9% increase.” — Dr. Michael Dent (CEO), highlighting q/q momentum at the core practice .
Initial HealthLynked Network sales launched in Orlando, Tampa, and Jacksonville with “promising” early results and positive reception from physicians, reinforcing commercial viability .
Corporate milestones: OTCQB trading (May 10), S-1 effectiveness for a $3M Investment Agreement, and $395k raised YTD (Q1 press release), supporting funding flexibility and public profile .

Operating loss expanded materially y/y, reflecting higher legal/accounting/public listing costs and investment in sales/overhead ahead of product launch; net loss rose to $0.561M .
Financing structure weighed on GAAP results via amortization of debt discounts ($0.059M in Q2) and interest expense ($0.020M), elevating other expenses vs. prior year .
Liquidity and access-to-capital risks: cash of $19k and going-concern disclosure; ELOC put capacity constrained by low stock trading volumes, potentially limiting near-term funding .

Metric	Q2 2016	Q1 2017	Q2 2017
Revenue ($USD)	$502,278	$476,118	$516,798
Operating Loss ($USD)	$(183,287)	$(387,490)	$(482,570)
Net Loss ($USD)	$(189,271)	N/A	$(561,304)
Basic EPS ($USD)	$(0.00)	N/A	$(0.01)

Margins

Metric	Q2 2016	Q1 2017	Q2 2017
EBIT Margin %	(36.5%)	(81.4%)	(93.4%)
Net Income Margin %	(37.7%)	N/A	(108.6%)

Segment Breakdown (Q2)

Segment	Q2 2016 Revenue ($USD)	Q2 2016 OpEx ($USD)	Q2 2016 Op Income ($USD)	Q2 2017 Revenue ($USD)	Q2 2017 OpEx ($USD)	Q2 2017 Op Income ($USD)
NWC	$502,278	$638,075	$(135,797)	$516,798	$553,587	$(36,789)
HLKD (Network)	$0	$47,490	$(47,490)	$0	$445,781	$(445,781)
Total	$502,278	$685,565	$(183,287)	$516,798	$999,368	$(482,570)

KPIs and Balance Sheet Highlights

KPI	Q2 2017
Cash ($USD)	$19,138
Accounts Receivable, net ($USD)	$144,601
Working Capital Deficit ($USD)	$(957,992)
Convertible Notes Payable ($USD)	$642,540
Warrants Outstanding (count; Wgt Avg Exercise $)	18,566,389; $0.23
Options Outstanding (count)	2,349,996
Basic Weighted Avg Shares (Q2)	69,411,880

Metric	Period	Previous Guidance	Current Guidance	Change
Capital Needs (Operating Funding)	Q3 2017	N/A	~$375,000 required to execute plan	Introduced
Capital Needs (Operating Funding)	Q4 2017	N/A	~$375,000 required to execute plan	Introduced
Convertible Note Maturities (Repayment Plan)	2018 (Jan/Jul)	N/A	Expect repayment of $111k (Jan 22), $550k (Jul 7), $50k (Jul 11) via ELOC puts, equity sales, related-party loans or conversion	Maintained disclosure
Access to ELOC	Ongoing	ELOC available post-registration	Low trading volumes may constrain ELOC put capacity; alternative financing may be required	Risk highlighted

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q2 2017)	Trend
Network Launch/Technology	Q-1: “software development... scheduled for release next month” ; Q-2 (Q4’16): no public filings located	Test-launched in three Florida markets; positive physician reception	Improving execution
Sales Organization	Q-1: Hired Chief Commercial Officer; sales training and first hires	Launched sales in Orlando/Tampa/Jacksonville	Scaling commercialization
Financing & Liquidity	Q-1: S-1 effective; $3M Investment Agreement; equity raised	Going concern; tight cash; ELOC constrained by low trading volume; note extensions and factoring (July/Aug)	Persistent funding reliance
Physician Capacity	Q-1: Dr. Dent retired from practice in 2016	Plan to replace with surgeon; potential +$650k annual revenue	Potential positive driver
Legal/Regulatory	No material proceedings disclosed (Q-1/Q2)	No material proceedings disclosed	Stable

“NWC... had a very strong quarter with $516,798 in revenue compared to last quarter of $476,118 in revenue - a 9% increase.” — Dr. Michael Dent, Chairman & CEO .
“We have also launched sales efforts in three cities in Florida... Our initial results are very promising... being well received by the physician community.” — Dr. Michael Dent .
“We commenced trading on the OTCQB on May 10th... The SEC declared our S1 filing related to our $3M Investment Agreement effective... We have also raised $395,000 this year...” — Q1 press release .
Liquidity plan: repay convertible notes via ELOC puts/equity/loans; caution on low trading volume limiting ELOC availability .

No Q2 2017 earnings call transcript was available in the document set. The company conducted an investor webcast (VirtualInvestorConferences.com) on July 13, 2017, but no transcript was provided in filings .

Wall Street consensus (S&P Global) for Q2 2017 EPS, revenue, and EBITDA was unavailable due to data access limits at time of retrieval. Values retrieved from S&P Global were unavailable.

Revenue stabilized with q/q improvement at NWC while the HealthLynked Network begins commercial rollout; near-term revenue remains practice-led with network upside dependent on sales execution .
Losses widened due to upfront public-company and go-to-market costs; expect continued operating losses as commercialization scales unless funding and adoption accelerate .
Liquidity risk is elevated (cash $19k, working capital deficit ~$0.958M); funding strategy hinges on ELOC, equity issuance, and debt; low volume constrains ELOC effectiveness, raising financing execution risk .
Capital structure includes sizable warrants/options and convertible notes that may be dilutive upon conversion or exercise; monitor maturity extensions and financing terms .
Physician capacity rebuild (post-CEO retirement) and potential acquisitions of medical practices could add revenue and patient networks, supporting network adoption .
Short-term trading: headlines around financings, note extensions, and sales milestones likely drive volatility; liquidity events are key catalysts .
Medium-term thesis: execution on physician onboarding, patient adoption, and monetization via provider subscriptions/telemedicine is critical to transitioning from practice-driven revenue to scalable platform economics .