MCI Onehealth Third Quarter Financial Results

November 14, 2022
  • Clinical data insights pipeline grows to $6.5 million
  • Solid increase in per patient revenue
  • Record number of physicians in network


  • 16% increase in year-to-date revenue over the same period last year, reflecting higher patient volumes from the Company’s clinics, telehealth services, MCI Connect virtual healthcare services and the acquisitions of Khure Health (“Khure”) and the Polyclinic Group of Companies (“Polyclinic”) in 2021. Quarterly revenue of $12.6 million remained stable over the same period last year, as revenue from new data initiatives offsets a decline in revenue from decreased demand for COVID testing.
  • Polyclinic and Khure acquisitions performing well, with quarterly revenue growing over 38.6% for the rare disease data screening product anchored by Khure and 92.0% for Polyclinic over the same period last year.
  • Per patient revenue up 6.2% over the same quarter last year.
  • Roll-out of the Company’s Data Insights as a Service offering continues, as the Company begins servicing customers looking for clinical data insights from its data lake of over 3 million health records, which are highly relevant for pharma, life sciences, health industry, clinical researchers and AI-technology developers.
  • Number of physicians in the MCI network at record numbers, ending the third quarter with approximately 280 physicians and specialists providing care in-clinic and virtually, with the Company on track to increase its physician base by over 20% in 2022.

TORONTO, Nov. 14, 2022 (GLOBE NEWSWIRE) -- MCI Onehealth Technologies Inc. (“MCI” or the “Company”) (TSX: DRDR), a clinician-led healthcare technology company focused on increasing access to and quality of healthcare, today released its financial results for the three- and nine-month periods ended September 30, 2022.

“Despite our soft third quarter, which is typical for the business and is usually followed by significant patient-services gains in the fourth quarter, we have nonetheless made significant gains in key elements of the business, including achieving a record number of physicians in our roster and a strong increase in per patient revenue,” said Dr. Alexander Dobranowski, CEO of MCI. “The increase in per patient revenue is a direct result of the technology and data-driven initiatives we’ve made to optimize patient care pathways by improving access to specialists and the use of data to flag potential gaps in diagnostic and preventative care that still linger from the pandemic backlog. Our successes in using data are attracting additional international customers for our data insights as a service, with our pipeline growing to $6.5 million this quarter and momentum expected to continue into our fourth quarter.”

A summary of MCI’s financial and operational highlights for the quarter are set out below, and more detailed information is contained in the financial statements and related management discussion and analysis, which are available on MCI’s SEDAR page at Financial measures described as “Adjusted” in this news release are non-IFRS financial measures and may not be comparable to other similar measures disclosed by other companies. Please see Non-IFRS Financial Measures below for more information.

Third Quarter 2022 Highlights

Significant financial and operational highlights for MCI during the third quarter of 2022 included:

  • Revenue Growth: Revenue held steady at $12,587 for the three-months ended September 30, 2022 as compared to $12,642 in the same period in 2021, and increased 16%, or $5,540, for the nine-month period ended September 30, 2022 as compared to the same period in 2021. Revenue growth continues to be driven primarily by higher patient volumes from the Company’s clinics, telehealth services, MCI Connect virtual healthcare services and the acquisitions of Khure and Polyclinic.
  • Smart Referral System: The Company continues to make significant progress in utilization of its smart referral system, the first application to leverage the data backbone which the Company has developed with a leading data analytics partner, streamlining the flow of patient referrals from general practitioners to specialists within the Company’s network, optimizing patient care pathways and increasing revenue from existing customers. Specialist revenue is up 9% for Q3 FY22 compared with Q3 FY21.
  • Information and Data Analytics: The third quarter saw the introduction of a new revenue stream generated by the Company’s data insights as a service offering, which is anticipated to grow in significance in the short- to medium-term. MCI currently provides data insights as a service in six categories: rare disease; complex major medical/chronic; patient cohort building; clinical trial recruitment; synthetic health data and bespoke insights. Such services are targeted primarily at pharmaceutical companies, life science companies, precision medicine companies and top-tier university centres. International partnerships with Palantir and MDClone were announced in Q3 and are active components of the Company’s current data offering.
  • Personnel: The Company hired 20 new physicians in the third quarter of 2022, reaching a record high roster of physicians of approximately 280 and anticipates that its physician base will have increased by over 20% by the end of 2022.
  • Health Technology & Research Services: The Company’s health technology and research services generated revenue of $0.4 million in the three-month period ended September 30, 2022, up 19% over the same quarter last year, and year-to-date revenue of $1,718, up 324% over the same period last year. Revenue from health technology and research services has been driven by the Company’s Khure and Polyclinic acquisitions, which have increased the depth of the Company’s revenue mix.
  • Corporate Health Services: The Company added 20 new corporate health customers in the third quarter of 2022, including Meridian, Cowan and Intermac in the insurance sector. Overall revenue from CHS declined during the three-month period ended September 30, 2022 by 58% to $0.54 million, due to decreased demand for COVID-19 services, but is projected to recover as more customers are onboarded and new services including a Digital Wellness Platform and Seniors’ Health sector offering are launched in addition to increased traffic to MCI’s e-commerce storefront.  
  • Net Losses:   Net losses for the quarter were $9.1 million, as compared to a loss of $5.4 million in the same quarter in the previous year. The increase in net losses was driven primarily by the write-down of a $3.4 million deferred tax asset and a $0.2 million impairment, and revenue and net losses otherwise remained fairly steady quarter-over-quarter. The Company’s expenses have generally shifted away from general and administrative expenses and towards research and development spending as the Company increases its operational efficiency and focuses more time and attention on research and development projects relating to the launch of the Company’s data backbone and standing up the Company’s data lake.  
  • Adjusted EBITDA: Adjusted EBITDA(1) for the quarter was negative $2.2 million, as compared to an Adjusted EBITDA of negative $1.8 million in the same period last year.


MCI expects to continue to accelerate total company revenue growth through the end of fiscal 2022 and into 2023 as it executes its strategic plan on multiple fronts including:

  • Continued momentum targeting the $300 billion North America data and analytics market segment opportunity, with MCI’s Data Insights as a Service platform that provides advanced analytics to third parties, activating the continually growing pipeline of engagements, currently valued at $6.5 million.
  • Organic growth of government insured health services from its omnichannel network of clinics, telehealth, the MCI Connect virtual platform and a substantial increase in its physician base from new and more cost-efficient physician recruiting efforts.
  • Continued organic growth in health services provided to corporate customers, as it expands its customer base, increases the number of available service offerings and ramps up its efforts to service national and Calgary-based customers via the now-launched MCI Connect in Alberta, including medical and cosmetic botox, mental health services and the anticipated launch of MCI Wellness Connect in partnership with a world-leading provider of enterprise-level app-based corporate wellness program.
  • Fully utilizing new technology partnerships and strategic acquisitions to further activate MCI’s pipeline of interests in health data insights from the Company’s data lake.
  • More than 15 clinical trial and screening engagements with global pharma companies actively underway.
  • Launch of versions of MCI Connect for mobile phones and connected wearables such as Apple iWatch, and of the MCI Connect service now active for its Alberta-based patients and nationally to corporate clients.
  • Acquisitions of specialty clinics and patient-facing partnerships with specialty services, including in the areas of eye health, cardiac health and weight management, to expand its health service offerings and enter new markets by leveraging technology to deliver more services to its large and growing patient and physician base and to gain more patients, fueling further expansion of its clinical records data lake.

To support the Company’s growth and its various initiatives, the Company is pursuing additional sources of financing while continuing to implement revenue growth and expense reduction strategies. There can be no assurance that the Company will be able to secure additional financing, or to secure it on terms favourable to the Company, or that its revenue growth and expense reduction strategies will be successful. See “Forward-Looking Statements” below and the “Liquidity and Capital Resources” section of the Company’s management discussion and analysis for the third quarter of 2022 for additional information.

Conference Call Details

MCI will hold a conference call and webcast to discuss progress on its key strategic initiatives and financial results for the third quarter of 2022, on November 14, 2022, at 5:30 pm ET. Please be advised that the process for listening to and participating in MCI’s quarterly conference call has changed. MCI strongly encourages attendees to join by webcast.

For attendees who wish to join by webcast, the event can be accessed at:

Attendees who wish to join by phone must visit the following link and pre-register:

Participants are encouraged to access the call or webcast at least 10 minutes prior to start.

Selected Unaudited Financial Information
(In thousands of dollars, except percentages and per share amounts)

 Three months endedPeriod overNine months endedPeriod over
 September 30period ChangeSeptember 30period Change
  2022  2021$% 2022  2021$%
 ($ in thousands except percentages)
Revenues$12,587 $12,642$(55)NM$39,421 $33,881 $5,540 16 
Cost of sales 8,917  9,227 (310)(3) 27,572  23,820  3,752 16 
Gross profit 3,670  3,415 255 7  11,849  10,061  1,788 18 
Research and development

General and administrative
 1,836  279 1,557 NM 5,881  970  4,911 NM
Sales and marketing

General and administrative
 158  988 (830)(84) 1,069  2,145  (1,076)(50)
General and administrative 6,795  7,478 (683)(9) 19,839  18,207  1,632 9 
  8,789  8,745 44 1  26,789  21,322  5,467 26 
Net finance costs 331  131 200 153  644  339  305 90 
(Income)/loss on investments 50  9 41 NM 237  (3) 240 NM
FV changes-contingent consideration 75  - 75 NM 233  -  233 NM
Impairment charges 200  - 200 NM 200  -  200 NM
Gain on sublease (187) - (187)NM (190) -  (190)NM
  469  140 329 235  1,124  336  788 235 
Income (loss) before taxes (5,588) (5,470)118 2  (16,064) (11,597) (4,467)39 
Income taxes 3,512  (32)3,544 NM 1,481  (867) 2,348 271 
Net Income (loss) (9,100) (5,438)(3,662)67  (17,545) (10,730) (6,815)64 
Adjusted gross profit (2) 3,987  3,573 413 12  12,324  10,325  1,999 19 
Adjusted gross margin (2) 31.7% 28.3%   31.3% 30.5%  
Adjusted EBITDA (1) (2,152) (1,824)(328)18  (7,570) (3,186) (4,384)138 
Adjusted EBITDA margin (1) (17.1) (14.4%)   (19.2%) (9.4%)  
Weighted average number of        
Of Share outstanding: Basic and diluted 50,075,202  49,540,229    50,075,202  47,630,393   
Net income (loss) per share -Basic and diluted$(0.18)$(0.11)  $(0.35)$(0.23)  

(1), (2) Financial measures described as “Adjusted” in the table above are non-IFRS financial measures and may not be comparable to other similar measures disclosed by other companies, please see Non-IFRS Financial Measures below for more information.

Selected Statement of Financial Position Data

 September 30, 2022December 31, 2021
 $ in thousands
Cash$1,302 $7,142 
Accounts receivable 4,559  6,328 
Accounts payable and accrued liabilities (6,901) (9,527)
Bank loan (1,615) - 
Related party loan (3,224) - 
Lease liabilities (13,098) (14,347)
Other liabilities (130) (130)
Non-controlling interest redeemable liability (1,305) (1,305)
Liability for contingent consideration (3,355) (3,122)

Non-IFRS Financial Measures

The terms Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Gross Profit and Adjusted Gross Margin used in this document do not have any standardized meaning under IFRS, may not be comparable to similar financial measures disclosed by other companies and should not be considered a substitute for, or superior to, IFRS financial measures. Readers are advised to review the section entitled “Non-IFRS Financial Measures” in the Company’s management discussion and analysis for the quarter ended September 30, 2022, available on MCI’s SEDAR page at, for a detailed explanation of the composition of these measures and their uses.

(1) The following table reconciles Adjusted EBITDA and Adjusted EBITDA Margin to net income (loss) for the three- and nine-month periods ended September 30, 2022, and September 30, 2021:

 Three months endedNine months ended
 September 30September 30
  2022  2021  2022  2021 
 $ in thousands
Total Revenue$12,587 $12,642 $39,421 $33,881 
Net income (loss) (9,100) (5,438) (17,545) (10,730)
Add back (deduct)    
Depreciation and amortization 1,813  1,329  3,877  3,012 
Net finance charges 331  131  644  339 
Loss/(income) from investments 50  9  237  (3)
Expected credit losses (6) 310  23  310 
Income taxes expense (recovery) 3,512  (32) 1,481  (867)
Impairment charges 200  -  200  - 
Gain on sublease contracts (187) -  (190) - 
Share-based payment expense 1,089  1,722  3,224  4,370 
Lease interest revenue (13) (17) (43) (41)
Acquisition related legal expenses 71  145  246  383 
Fair value changes in contingent consideration 75  -  233  - 
Adjusted EBITDA$(2,152)$(1,824)$(7,570)$(3,186)
Adjusted EBITDA Margin (17.1%) (14.4%) (19.2%) (9.4%)

(2) The following table reconciles Adjusted Gross Profit and Adjusted Gross Margin to revenue and cost of sales for the three- and nine-month periods ended September 30, 2022, and September 30, 2021:

 Three months endedPeriod overNine months endedPeriod over
 September 30period ChangeSeptember 30period Change
  2022  2021 $% 2022  2021 $%
 ($ in thousands except percentages)
Revenue$12,587 $12,642 $(55)NM$39,421 $33,881 $5,540 16%
Cost of sales 8,917  9,227  (310)(3%) 27,572  23,820  3,752 16%
Depreciation and amortization (317) (158) (158)100% (475) (264) (211)80%
  8,600  9,069  (468)(5%) 27,097  23,556  3,541 15%
Adjusted gross profit$3,987 $3,573   $12,324 $10,325   
Adjusted gross margin 31.7% 28.3%   31.3% 30.5%  

About MCI
MCI is a healthcare technology company focused on empowering patients and doctors with advanced technologies to increase access, improve quality, and reduce healthcare costs. As part of the healthcare community for over 30 years, MCI operates one of Canada’s leading primary care networks with approximately 280 physicians and specialists, serves more than one million patients annually and had nearly 300,000 telehealth visits last year, including online visits via MCI additionally offers an expanding suite of occupational health service offerings that support a growing list of nearly 600 corporate customers. Led by a proven management team of doctors and experienced executives, MCI remains focused on executing a strategy centered around acquiring technology and health services that complement the company’s current roadmap. For more information, visit

For media enquiries please contact:
Nolan Reeds | | +1 (416) 440-4040 ext. 158

Forward Looking Statements

Certain statements in this press release, constitute “forward-looking information” and "forward looking statements" (collectively, "forward looking statements") within the meaning of applicable Canadian securities laws and are based on assumptions, expectations, estimates and projections as of the date of this press release. Forward-looking statements include statements with respect to projected revenues, earnings, growth rates, targets, revenue mix, product plans, use of proceeds, new business ventures, commercial arrangements and potential acquisitions, as well as MCI's future growth, strategic transformation plan, results of operations, performance and business prospects and opportunities. The words “plans”, “expects”, “projected”, “estimated”, “forecasts”, “anticipates”, “intend”, “guidance”, “outlook”, “potential”, “prospects”, “seek”, “aim”, “strategy”, “targets” or “believes”, “for use in”, “growth”, “expansion”, “to pursue”, “to develop”, “future”, “later”, “on track”, “pipeline”, “to be gained”, “poised”, “continues to”, “facilitate”, “is developing”, “coming online” or variations of such words and phrases or statements that certain future conditions, actions, events or results “will”, “may”, “could”, “would”, “should”, “might” or “can”, or negative versions thereof, “occur”, “continue” or “be achieved”, and other similar expressions, identify forward-looking statements. Forward-looking statements are necessarily based upon management’s perceptions of historical trends, current conditions and expected future developments, as well as a number of specific factors and assumptions that, while considered reasonable by MCI as of the date of such statements, are outside of MCI's control and are inherently subject to significant business, economic and competitive uncertainties and contingencies which could result in the forward-looking statements ultimately being entirely or partially incorrect or untrue. Forward looking statements contained in this press release are based on various assumptions, including, but not limited to, the following: MCI's ability to achieve its growth strategy; the demand for MCI's products and fluctuations in future revenues; the availability of future business ventures, commercial arrangement and acquisition targets or opportunities and MCI’s ability to consummate them; MCI’s ability to effectively roll out its smart referral system and stand-up its data lake; MCI’s ability to effectively integrate existing and future acquisition targets into its platform; the effects of competition in the industry; the requirement for increasingly innovative product solutions and service offerings; trends in customer growth; sufficiency of current working capital to support future operating and working capital requirements; the stability of general economic and market conditions; currency exchange rates and interest rates; equity and debt markets continuing to provide MCI with access to capital; MCI’s ability to continue to operate as a going concern; MCI's ability to comply with applicable laws and regulations; MCI's continued compliance with third party intellectual property rights; the anticipated effects of COVID-19; and that the risk factors noted below, collectively, do not have a material impact on MCI's business, operations, revenues and/or results. By their nature, forward-looking statements are subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct, and that objectives, strategic goals and priorities will not be achieved.

Readers are encouraged to review the “Liquidity and Capital Resources” section of the Company’s MD&A, together with Note 2(c)(ix) of the Company’s financial statements, for the third quarter of 2022, which indicate the existence of material uncertainties that cast significant doubt on the Company’s ability to continue as a going concern. The Company’s ability to continue as a going concern is dependent on, among other things, its ability to meet its financing requirements on a continuing basis, to have access to financing and to generate positive operating results. While the Company has been successful in securing financing in the past and believes it will be able to continue to satisfy its financing requirements and ultimately achieve necessary levels of profitability and positive cash flows from operations, raising additional funds and improving operating results are dependent on a number of factors outside the Company’s control and, as such, there can be no assurance that the Company will be able to do so in the future.

Known and unknown risk factors, many of which are beyond the control of MCI, could cause the actual results of MCI to differ materially from the results, performance, achievements or developments expressed or implied by such forward-looking statements. Such risk factors include but are not limited to those factors which are discussed under the section entitled “Risk Factors” in MCI's annual information form dated March 31, 2022, each of which is available under MCI's SEDAR profile at The risk factors are not intended to represent a complete list of the factors that could affect MCI and the reader is cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking statements. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are provided for the purpose of providing information about management’s expectations and plans relating to the future. MCI disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law. All of the forward-looking statements contained in this press release are qualified by these cautionary statements.