Hello and welcome to the HEALWELL AI first quarter 2024 financial results conference 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. To ask the question during this session, you will need to press Star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press Star 11 again. I would now like to turn the call over to Pardeep Sangha. You may begin.
Hello. Thank you, operator. Joining me on the call today are Dr. Alexander Dobranowski, CEO of HEALWELL, and Scott Nirenberski, the company's CFO. I trust that everyone has received a copy of our financial results press release that was issued earlier today. Listeners are also encouraged to download a copy of our quarterly financial statements and management discussion analysis, which will be available later tonight on SEDAR+. Please note, portions of today's call, other than historical performance, include statements of forward-looking information within the meaning of applicable securities laws. These statements are made under the safe harbor provisions of those laws. Please refer to today's press release and to our management discussion analysis for more details on the company's risks and forward-looking statements. We provide forward-looking statements solely for the purpose of providing information about management's current expectations and plans relating to the future.
We do not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations or any change in adverse conditions, assumptions, circumstances on which any such statement is based, except if it is required by law. We use terms such as Adjusted EBITDA on this conference call, which is a non-IFRS and non-GAAP measure. For more information on how we define these terms, please refer to the definitions that are set out in our management discussion and analysis. With that, let me turn the call over to Dr. Alexander Dobranowski, CEO.
Thank you, Pardeep, and good day, everyone. We truly appreciate everyone for joining us today. I'd like to start today by providing a background on what is HEALWELL AI and who we are. HEALWELL AI is a healthcare technology company focused on AI and data science for preventative care. Our mission is to improve healthcare and save lives through the early identification and detection of disease. Using our own proprietary technology, we are also developing and commercializing advanced clinical decision support systems, also referred to as co-pilot technologies, that can help healthcare providers detect hundreds of diseases, including complex, chronic, and rare conditions, improve efficiency of their practice, accelerate R&D efforts for therapeutic development and clinical research, and ultimately, and most importantly, help to materially improve patient health outcomes. The earlier the detection, the greater the likelihood of treatment being successful. This is where AI comes in.
AI can screen and structure historical patient clinical information to help inform physicians of markers and signals for potential disease in patients earlier, helping to dramatically reduce detection time. Utilizing AI technologies in preventative care can allow us to identify patients in a more personalized and proactive manner before their health reaches higher risk stages. I'd like to start the call with some introductory knowledge about the company and guidance to proceed with our full review of financial results for this call, following which I'll provide a more fulsome discussion highlighting our vision, strategic plan for the company, the tremendous market opportunity, and also some very exciting and material updates on what we have accomplished subsequent to the quarter. Afterwards, we'll have time for Q&A and concluding remarks.
The first quarter marked an exceptional continuation of our journey and embracing of our mission to revolutionize healthcare and enhance disease detection, powered by our cutting-edge AI and data science technologies. Now, let's look at some of our recent achievements. HEALWELL debuted on October 1, 2023, and since then, we've been extremely busy, and we have achieved many key milestones. We forged a transformative strategic partnership with WELL Health Technologies, who owns and operates the largest clinic network in Canada and our largest shareholder. We completed three financings, including a CAD 10 million convertible debenture, an CAD 8 million bought deal equity financing, and a CAD 11.5 million bought deal equity financing, both of which were upsized. In addition, we recently announced a bought deal equity financing of up to CAD 20 million, which we expect to close on or around May 24th.
Counting all financings and assuming full uptake on the most recent financing would effectively bring the total amount of capital raised to CAD 49.5 million in since launch seven months ago. In parallel, our M&A team has been very active, having successfully completed two exciting and material acquisitions of Pentavere and IntraHealth and made an equity investment in Doctorly. On the business development side, we announced new commercial agreements with WELL Health USA and Circle Medical, expanding our footprint into the U.S. market, plus we made material headway from an AI perspective, as highlighted by Pentavere's groundbreaking publication validating the use of generative AI to identify rare lung cancer patients as a global first.
In addition, just six months after powering our partner WELL's first-generation digital physician co-pilot, which was focused on rare disease detection, we have launched what we believe to be the Canadian market's only commercially available AI physician co-pilot that is integrated with a major EMR and assists with chronic disease detection. Given the important cause of chronic disease to our healthcare ecosystem as the leading cause of death and disability, we couldn't be more proud to bring this profound new capability to physicians via our partner WELL Health and our exclusive role as powering their WELL AI Decision Support tools and WELL recently introduced the second-generation WELL AI Decision Support WADS powered by HEALWELL AI. These milestones have established the framework for the company's growth and future success. We're very optimistic about our future trajectory, driven by a combination of organic growth and future strategic actions.
As we mentioned in our Q4 conference call only a few weeks ago, currently, our robust acquisition pipeline positions us potentially doubling our current revenue run rate from CAD 20 million to exceeding CAD 40 million annually, leveraging our existing cash reserves. With a strong foundation in place, HEALWELL AI is primed for sustained growth. Beyond activities, our key areas of focus include ramping up physician adoption of the HEALWELL AI platform, deepening our integration within the WELL Health ecosystem, accelerating the sales of our AI tools and technology under the Khure Health and Pentavere platforms, adding new financial agreements in partnership with life sciences companies, health systems, and other commercial partners, and broadening the reach of our IntraHealth adding AI capabilities. We're witnessing an unprecedented opportunity in healthcare AI, and we're uniquely poised to capitalize it.
Although still in its early days, the healthcare AI sector is rapidly evolving and also rapidly growing. We believe the landscape can be more ideal for us to be positioned as an early mover and to build a high-growth leading AI company. I'll expand on this but also provide additional details on the company's outlook, but first, I'd like to turn it over to our CFO Scott, who will review the financial results for the first quarter of 2024.
Thank you, Alex. It's important to note that our Q1 results do not fully reflect these accounting run rate revenues, as the IntraHealth acquisition finalized in February is anticipated to contribute over CAD 12 million in annualized revenue looking forward. We are optimistic about the prospects for both our near-term bottom line performance as well as the financial strength of the company. Our first quarter 2024 results are as follows. The results are results from continuing operations. Healwell achieved quarterly revenues of CAD 4.58 million in 2024 compared to revenue of CAD 1.47 million generated during 2023. Revenue growth was driven by the acquisitions of IntraHealth and Pentavere, while Khure continued to make progress in its recovery and actually achieved its highest revenue level in the last 12 months. Healwell achieved gross profit of CAD 2.84 million in Q1 2024 compared to CAD 661,000 during Q1 2023.
Healwell's gross margin percentage in 2024 was 62% compared to 33% in Q1 2023. The margin percentage was due to contribution from higher margin revenues from IntraHealth and Pentavere, as well as solid growth in clinic research operations at MCI Polyclinic Group and ongoing recovery in Khure. During Q1 2024, Healwell reported Adjusted EBITDA loss of CAD 1.56 million compared to an Adjusted EBITDA loss of CAD 1.86 million in Q1 2023. The larger loss was driven by the company's marketing to drive sales and its brand awareness and elevate its brand awareness. I will now provide an update on our cash and debt position. We ended the quarter, March 31, 2024, with CAD 11.3 million in cash.
Total reported debt was CAD 21.2 million and really consists of CAD 9.6 million in face value of convertible debentures, CAD 7.5 million in legacy debt, which is expected to be forgiven in the coming quarters, a 5-year VTB loan to Well for the acquisition of IntraHealth, and CAD 1.6 million in low-interest loans at Pentavere. It is important to note that a significant portion of the company's debt is either expected to be forgiven or converted into the company at favorable prices. If you assume all of this debt is either forgiven or converted, it would leave the company with only CAD 6.6 million in debt, of which CAD 5 million is the VTB loan, which will be paid off during 2024, leaving us with a remaining of only CAD 1.6 million low-interest bearing loans to Pentavere.
As such, on completion of the recently announced bought deal financing, we anticipate having cash to continue fueling the company's acquisition and organic growth strategies. The cash decline from CAD 19.2 million year 2023 to CAD 11.3 million at the end of Q1 was largely due to the IntraHealth acquisition as well as increased marketing activities that we discussed earlier in the call for sales and branding awareness. Subsequent to the end of the quarter, on May 6, 2024, the company announced its third bought deal public offering financing at a price of CAD 1.35 per unit for aggregate gross proceeds of approximately CAD 7 million. This offering has been upsized with an option to the underwriters to purchase additional units, which, if exercised in full, aggregate gross proceeds of the offer would be up to CAD 20 million. In summary, I'm pleased to report that HEALWELL's outlook is bright.
It's in strong financial position and has capital to fund future acquisitions and execute on its growth strategy initiatives. I'll now turn it back over to Alex.
Thank you, Scott. I'd like to continue by providing an update on the WELL Health relationship. As we know, WELL Health is Canada's largest owner-operator of outpatient medical clinics and leading digital health services, providing software services to more than one-third of all Canadian physicians. WELL Health also has a substantial business in the United States. WELL Health is a large company. On February 27th, the company appointment of Hamed Shahbazi as chairman of the board of HEALWELL. Hamed Shahbazi is currently the chairman and CEO of WELL Health and has also served HEALWELL since its launch on October 1, 2023. The appointment of Hamed Shahbazi to the chair of HEALWELL is strategically important for HEALWELL and HEALWELL, given the shared objectives between the companies.
On March 21, 2024, we announced that we will make service agreements with both WELL Health USA and U.S.-based Circle Medical to expand our footprint in the U.S.
and equip healthcare with an advanced suite of AI-driven preventative care solutions. One way to conceptualize the HEALWELL relationship with WELL Health is to highlight that WELL Health has a multi-jurisdictional clinical footprint, digital tools, and the patient volumes, while HEALWELL has artificial intelligence technology and data science capabilities and expertise. In order to maximize chances of success, we need to continue to onboard and engage with providers. This is critical to the success of any technology or AI-oriented healthcare company. WELL Health provides us with this access, as well as WELL Health effectively white-labeling HEALWELL technology as WELL AI Decision Support. On May 7th, HEALWELL and WELL Health introduced the second generation of the WELL AI Decision Support WADS. This features advanced chronic disease screening, including detection capabilities for chronic kidney disease, hypertension, and diabetes.
WADS now identifies over 100 diseases, providing actionable clinical insights at the point of care to aid in patient risk stratification and contribute to the management of chronic disease-related costs in Canada, estimated at a staggering approximate CAD 190 billion annually. This highlights the commitment of WELL Health to these technologies and why this will be a driver of success for HEALWELL. What an opportunity this is for success to the entire WELL Health clinic provider footprint. I'd like to spend a few minutes now talking about our revenue segments. The company generates revenue in three distinct sections: one, AI and data science; two, healthcare SaaS; and three, patient services and clinical research. The first section I'll unpack is AI and data science, which is integration of cutting-edge artificial intelligence technologies within the healthcare landscape through technology-enabled rare and chronic disease screening from its Khure Health and Pentavere divisions.
Leveraging state-of-the-art AI algorithms and advanced analytics, HEALWELL AI analyzes extensive clinical data sets to extract invaluable insights. These insights are then transformed into actionable recommendations empowering physicians with early disease detection capabilities. This proactive approach optimizes the patient care pathway, ensuring swift and accurate diagnosis and treatment. Our AI and data science division serves a clientele of life sciences, pharmaceutical, medical, and precision medicine companies. I'm proud to announce that we have signed MSAs, or master service agreements, with 14 different pharma and life sciences companies, including six of the top 10 largest pharma companies in the world. This is a substantial accomplishment for a small company like HEALWELL AI, and we expect this number to continue to grow in the coming quarters.
We are also exploring a strategy to grow our AI-oriented revenues within the public sector framework, leveraging WELL's ability to work successfully commercially with the public sector, plus also with potential insurance space. I will provide more updates on this in the future. Our AI and data science business is a two-sided network. On one side are the life sciences companies and other commercial partners, and on the other side is our compliant access to our relationships with entities such as WELL Health, hospitals, and healthcare systems. Although it may take additional effort to design and scale a two-sided network, in our view, once established, these types of networks tend to be durable and highly valuable.
We attract world-class pharma and life sciences companies because of our credibility in healthcare AI, punctuated by the fact that we have now published over 25 manuscripts in peer-reviewed medical journals that confirm the efficacy of some of our artificial intelligence technologies in certain clinical applications. The second revenue stream is healthcare software-as-a-service revenue provided by IntraHealth. IntraHealth is an enterprise-grade EHR platform, and HEALWELL benefits from IntraHealth's clientele of healthcare providers, hospitals, and clinics, extensive network of over 15,000 healthcare service providers across multiple jurisdictions spanning Canada, Australia, and New Zealand. IntraHealth's SaaS-based model has historically yielded over 80% gross margins alongside positive EBITDA and cash flows, a significant portion of revenue deriving from high-margin recurring sources.
The third revenue segment of patient services consists of clinical research delivered by Canadian Phase Onward HEALWELL CRO, providing life science research services and revenue-related consultations delivered through the company's polyclinic group in Ontario. Clinical research revenues are contract-based revenues, but this segment operates on a per-visitor or per-project basis and has a track record of positive EBITDA. It also caters to diverse clientele, including government health insurance reimbursement and life science research sectors. Importantly, I'll now provide more details on our M&A strategy. HEALWELL is executing a strategy centered around developing and acquiring technology and clinical sciences capabilities that help companies become roadmap. With this strategy, HEALWELL is targeting AI and data science companies that expand our current early disease detection capabilities, along with technology and healthcare software companies that provide access to additional clinical information and mature recurring revenue.
Since our debut in October, we've made two notable acquisitions: Pentavere and IntraHealth. On December 4th, HEALWELL AI acquired Pentavere Research Group, one of Canada's leading AI companies focused on early disease detection. Pentavere is a healthcare AI company that helps identify patients for approved medications or interventions, finding effectively patients that have fallen through the cracks. Pentavere has developed and validated AI capabilities and data strengthening, a key competency to unlock clinical value for patients and providers with a proven track record and commercialization of real-world evidence that provides new pharma relationships to the HEALWELL AI ecosystem. On February 1st, HEALWELL AI acquired IntraHealth. The company is a venture capital company that accommodates 15,000 healthcare service providers across multiple jurisdictions and provides the company with access to deploy its artificial intelligence technology. IntraHealth is a SaaS-based multinational EHR provider supporting clinical work across Canada, Australia, and New Zealand.
Historically, IntraHealth has achieved over 80% gross margins, produced positive EBITDA, and positive cash flows. Over 80% of its revenue is high-margin recurring revenue. We are currently executing on a plan to deeply integrate our industry-led AI tools within IntraHealth to create a next-generation AI-powered EHR to help significantly amplify healthcare providers and allow them to drive better health outcomes. We have started by integrating our clinical co-pilot tools into the IntraHealth offering, providing both AI-enabled rare and chronic disease screening capabilities. We have a very full and active pipeline of acquisition opportunities. We are currently looking at numerous compelling acquisitions that fall into two distinct categories. The first are AI and data science companies that expand current capabilities and are focused on early disease detection across all domains. These types of targets are now starting to demonstrate revenue traction and achieve validation that their technologies work safely and reliably.
This is a very exciting time to be targeting AI-oriented healthcare companies, as companies with these types of capabilities simply didn't exist before. Pentavere is an excellent example of the kind of companies we are targeting in this first category. The second category of acquisition targets are mature operating companies with strong financial profiles that would be vertically integrated with our AI technologies to drive incremental revenue and cash flow. Healthcare software companies, clinical research companies, and also digital health companies are great examples. These types of companies provide us with a vector of access to more patients, providers, and clinical information, but also, importantly, have a very strong profile from a financial fundamentals perspective, with maturing revenues, positive EBITDA, and free cash flows. IntraHealth is an excellent example of the kind of companies we are targeting in this second category.
I will now provide brief details further explaining advanced clinical decision support, or in other words, what our physician co-pilot tools are and how this ties back to our main strategy. As we continue to expand our capabilities at HEALWELL, we will ultimately build a platform that can not just help screen and risk identify patients for rare and chronic diseases, but also have robust capabilities to support clinician decision-making across all clinical domains. This is what we mean by advanced clinical decision support. This is what we're working towards. As we acquire and also build out these capabilities, we will be continuing to launch in parallel what we call clinician co-pilot tools that will be specific for a particular clinical domain.
For instance, our first validated and commercialized co-pilot tool is Khure Health Co-Pilot that was built under our Khure Health banner and white-labeled as WELL AI Decision Support, which we updated to its second generation this quarter. Looking toward the future, you can picture HEALWELL's AI capabilities rapidly accomplishing the acquisition of targets, as I mentioned in the first category, building out the foundational platform for advanced clinical decision support, and then we will be deploying these technologies into our partner healthcare systems like WELL Health and also into our own platforms of access highlighted by our second category of target companies. This we believe to be quite a compelling and sustainable strategy. Now, from an outlook perspective, we have an extremely positive outlook based on our organic growth profile and our M&A strategy.
I am most excited by the immense potential for growth and innovation, particularly in the realm of AI technology. HEALWELL's strategic focus on organic growth aligns perfectly with this trend. We currently have a strong and active acquisition pipeline with the potential to more than double our revenue by the end of the year using just the cash we have on hand. Then, the cash proceeds from the recently announced CAD 20 million bought deal financing will allow us to even further accelerate our ability to execute on our capital allocation and M&A strategy. I want to reiterate that HEALWELL is a healthcare AI and data science company that has proven results and revenue from six of the top 10 largest pharma companies. The WELL Health relationship accelerates our growth with exclusive access to providers across North America.
As Scott reported, we have a very strong balance sheet, which enables us to execute on our capital allocation plan. M&A will play a significant role. We have already completed two key transactions with a path to more than double our revenue, as I mentioned, in the coming months. We believe that since we have the necessary building blocks in place to successfully execute in healthcare AI, the time is now to plant our flagship engine in healthcare AI and execute against this mission. Finally, I'd like to thank the entire team at HEALWELL, whose hard work continues to help us reach higher levels . I'd like to thank our investment banking partners. I'd like to thank Hamed and the leadership team at WELL Health. Plus, I'd like to thank my board of directors. Also, I'd like to thank you all for joining us on this call today.
We look forward to providing an update next quarter. I'll now hand it back to the operator.
Thank you. Ladies and gentlemen, as a reminder to ask the question, please press star 1 1 on your telephone and then wait to hear your name announced. To withdraw your question, please press star 1 1 again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Jason Zandberg with Zenith Capital Partners. Your line is open.
Hi, and thanks for taking my questions. Congratulations on a great quarter. That was better than I'd anticipated, so again, congratulations on the strong top line. I'm just wondering if you can break out. I haven't seen the MD&A, so I'm not sure if you're breaking this up. But if you could break out the contribution from IntraHealth in those two months after the acquisition was closed.
Yeah, give me one second, Jason, and I'll get that for you.
I mean, I would make the assumption that it's CAD 12 million run rate, 2 months equals CAD 2 million, but I'm not sure if this means.
Yeah, that's a fair point. It's pretty close to what you said. It's obviously growing, and it actually did a little better than what we had expected it to do in the two months that we were operating it. So it's actually off to a really, really great start. But basically, it was just north of CAD 2 million. CAD 2,036,000.
Perfect. No, that's great. As well, your G&A expense for the quarter was CAD 6.1. I just wanted to find out whether there's any sort of noise in that number, given some sort of one-time expenses maybe related to IntraHealth or some other. Or is this sort of a number that we can use to model going forward, give or take a small amount?
Yeah, so the G&A definitely had some noise in it because there is we did M&A in the quarter, and with M&A, you've got charges for legal and acquisition expenses. That was over CAD 500,000, CAD 525,000.
Okay. Okay, so maybe CAD 500,000 or CAD 500,000-CAD 1 million in sort of noise in that quarter. Otherwise, it would sort of be a.
Yeah. Yeah. And then for the quarter, there was also CAD 480,000 in share-based expense, so non-cash expense that was in there.
Got it. Okay, well, that's helpful. And then just lastly, just the work that Pentavere did with the J&J study and Princess Margaret Cancer Centre, I've talked to a few people that have essentially said that the generative AI that was used to analyze and structure this data would have been possible to do the study without that component. So I'm just wondering, my question is sort of, is this work creating sort of ripples in the industry where you're seeing inbound inquiries from other organizations seeking similar services for other studies?
Hey, Jason, really good to speak with you, and thanks for the questions. So the answer to that is yes. And look, I don't think we'd be in the habit to deplete every type of research artifact that we produce, but this was especially important because it was an example of working with the largest pharma company in the world and one of the most prestigious cancer institutes globally, right, and applying an important generative AI use case in precision oncology. So in our view, that was actually a global first. So we have had some inbounds from all sorts of different states, right, those that want to participate in the use of these types of technologies, those that want to learn more. It's been fairly exciting.
Okay, that's fantastic. Congrats on the strong quarter, and I'll pass the line.
Thanks, Jason.
Thank you. Please stand by for our next question. Our next question comes from the line of Kieran Chhabra with Eight Capital. Your line is open.
Hey, guys. Congratulations on the quarter as well. To start here, I'd like to touch on your internal product roadmap. As seen with WADS and chronic diseases, are you going to be adding on more specialty diseases there, or are there other capabilities you want to maybe build without buying?
Yeah, Kieran, hey, very good to speak to you. Thanks for attending and for your questions. So the answer to your question is absolutely, right, and we're going to add to this ongoing co-pilot capability in different subclinical domains, both through our own R&D efforts and through acquisition, right? There are so many different specialties and subspecialties that we're not going to endeavor to try to build it all organically, but definitely complement through acquisition.
Got it. Any other commentary? Alex touched on improving adoption of the CDS with physicians. Can you comment on some of the measures you're implementing there to improve that adoption?
Well, Kieran, one of the important metrics that we're using internally and will share more externally, but is just how many physicians are being onboarded, and then the continuing use of our platform, right? And so both of these metrics are quite important, and we're seeing success along both.
Okay. Then finally here, you have an increased capacity for M&A. Now, does this change the profile of the two types of targets you're looking at today maybe versus earlier this year? I'll leave it there.
Yeah. So Kieran, as I've previously communicated, right, we have confidence in and a strong line of sight to doubling our top line, and that was harnessing the cash we had on hand prior to this financing. So to answer your question, when this financing closes, right, then yes, we may make some adjustments in terms of the profile that we're targeting.
Thanks, guys.
Thanks, Kiran.
Thank you. As a reminder, ladies and gentlemen, that's star 1 1 to ask the question. Please stand by for our next question. Our next question comes from the line of Gabriel Leung with Beacon Securities. Your line is open.
Hey, good afternoon, and thanks for taking my questions. It's two things. Alex, during your preamble, you'd alluded to potentially doing some work with private and public insurers. I'm just curious if you can elaborate a little bit on that and what some of your goals are within that region there?
Yeah. So Gabe, this is an important part of our strategy. It's in the early days, right? And we've been successfully now commercializing with life sciences partners. We're entering our fourth year of tenders or so for a bit longer. So there's some pedigree in being able to deliver valuable clinical insights to these types of partners. But where we see an additional dramatic value opportunity is actually working with public sector participants and also on the insurer side, both in Canada and the U.S. and the West. I'll leave it at that, Gabe, but this is a really, really important driver where we think we'll also be able to calibrate the sales of these types of products that we've been delivering to life sciences also in a subscription-type format. So there'll be some updates on that front in coming quarters.
Gotcha. No, thanks for that. Second, I think the previous question asked about adoption rates, but I'm actually kind of curious. In terms of your AI platform, how important is healthcare practitioner adoption? Can't you, on their behalf, run patient screens for life sciences companies without the healthcare practitioner themselves actually using the platform? I guess, what's more important, adoption or having your platform integrated into as many EMRs, EHRs as possible?
So Gabe, where we're endeavoring to take the direction of Healwell is to really have this unifying platform of clinical decision support, right? And today, we can screen and treat patients at high risk of rare diseases. And also, we announced recently the capability in chronic diseases, right? But there's other clinical opportunities that we'll be expanding into, right? So then when a practitioner uses this technology, it's very relevant for their day-to-day work, right? Because in the background, we'll be screening against conditions across all specialties and subspecialties. So that's where we're headed. Now, we always want to work with our provider partners. So their adoption and onboarding is very important, right? This is a physician-led company, right? My background is a. And we're always orienting this around, can we actually improve patient outcomes? So that's number one, right?
We rely on our provider partners, right, for feedback and how to improve this technology, etc. But there are other opportunities to scale. For instance, how Pentavere has done some really, really important work with their focus on real-world evidence clinical generation, where that isn't necessarily reliant on any specific provider base, just in partnership with other healthcare systems where you can then work with commercial partners, right, without needing specific onboarding requirements of a number of providers. So to answer your question, right, there's opportunities in both domains, but where we see the value of opportunities, of course, working with providers on the two-sided network, as I explained.
Gotcha. That's a tough question. Feedback and that breadth of progress.
Thank you.
Thank you, Gabe.
I would now like to turn the call over to Pardeep for additional questions.
Hi. Yeah, I've received a call and question here from Michael Freeman of Raymond James by email. He asks, with regards to IntraHealth, if you can elaborate on how it makes sense for the IntraHealth platform to live under HEALWELL's roof instead of under WELL's. Maybe you can just elaborate on the AI next-gen EMR you're building here at HEALWELL.
Yeah. I think it was really an appropriate move, right, from IntraHealth to come under the HEALWELL banner, really specifically because at HEALWELL, we have the artificial intelligence capabilities and technologies to ameliorate that platform. I mentioned, from an M&A perspective, we're focused also on the second category of targets, which are mature operating companies that don't necessarily have the AI. Well, we have the AI where we can then level up these companies. That was a big part of the rationale of bringing IntraHealth under the HEALWELL banner.
A second question from Michael Freeman from Raymond James. With regards to Khure Health and WADS, what kind of feedback have you had in terms of WADS thus far? And also, the second-generation WADS screen features, are they being launched among Khure Health's other customers as well, other than WELL Health?
So I'll answer the second question, and the answer is yes, right? This is not just a level up in capability that's only been offered within WELL Health, but also the other groups that we're in partnership with that are using the Khure Health platform. And to answer the first question, we've had resoundingly positive feedback. And I think I'll highlight one particular individual, the Chief Medical Officer at WELL Health. He was able to harness this technology, use it, test it, and I believe was really impressed with its capabilities. He's also a practicing physician, and in his clinical practice, live, we were able to help risk stratify patients at high risk of certain conditions that weren't previously identified for those issues. So really strong positive feedback.
That's all the questions I have on my email. Operator, can you provide the instructions again for questions?
Sure. As a reminder, ladies and gentlemen, that's star 11 to ask the question. I'm showing no further questions. I would now like to turn the call back over to Alex for closing remarks. I'm showing no further questions in the queue. I would now like to turn the call back over to Alex for closing remarks.
Operator, thank you. In closing, I'd like to thank everyone once again for joining our call today. Thank you to the analysts for their questions. Everyone, please stay safe and stay healthy. We look forward to providing more updates in the future. Thank you very much.
Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.