ALPHARETTA, GA / ACCESSWIRE / April 7, 2021 / RushNet, Inc. (OTC PINK:RSHN), ('the Company') recently acquired and D/B/A Chattahoochee Labs/HeliosDx, is pleased to announce a record-setting first quarter with total revenues of $1,252,000. The first quarter proved challenging on many fronts. As previously noted, we expanded our testing capacity, as well as our testing capabilities. This process commenced in Q4 2020, but the bulk of the work and disruption took place in Q1 2021.
Even through the struggles of growing our capacity and capabilities, we still managed to set new company benchmarks. We saw our revenue jump from same time in Q1 2020 to Q1 2021 by 7.59%. The total revenue booked in Q1 2021 is approximately $1,252,000. Additionally, our testing volume jumped from Q1 2020 compared to Q1 2021 by 56.90%. This represents a growth in testing volume of approximately 2,350 additional tests. This is yet again another new record the company set for itself. 'This is the real story of the first quarter,' says Ashley Sweat, CEO of HeliosDx/Chattahoochee Labs, and now CEO of RushNet Inc.
We are not a transactional business and often our revenue recognition cycle, based on our method of accounting, can range from a couple weeks to a few months. It is in typical fashion we see volume increase before we report revenue increase. This means we are well positioned in Q2 to see our revenue begin to follow the volume of testing experienced in the preceding quarter. An increase in revenue is expected in Q2 due to the increase testing demands in Q1 with carryover into Q2. This will undoubtedly accompany a commensurate growth in EBITDA.
As previously reported in our most recent press release, HeliosDX enjoyed an adjusted EBITDA of approximately $1.3M in calendar 2020. We expect more in 2021. By contrast, we expect to post a loss for Q1 2021. Over the course of the last 3 to 4 months we have seen our expenditures adjust dramatically. The reason is twofold. First, to meet the growing demand, we invested in specialized equipment, resulting in an incremental increase in costs. The expected first quarter loss was principally attributable to the acquisition of our new instruments, thus further expanding our testing capabilities which are set to go live in April 2021. We spent more than $700,000 over the course of the last 3 to 4 months to accomplish this enhanced capacity. Fortunately, we were able to fund this from operations without toxic debt. No further significant spending is required, and we are now well positioned for Q2 and the remainder of 2021 to see profits move greatly.
Currently, the company is working diligently to prepare past disclosures to file with the OTC Markets to move RSHN to Pink Current. Lastly, the company is also preparing documentation to file with FINRA for the r/s, company name change, and company symbol change.
Recently, Mr. Sweat put out a more personal letter to the shareholders via the company's Twitter handle, @dx_helios. This letter can be found through this link.
About HeliosDx and Chattahoochee Labs:
Having begun operations in 2015, the company has witnessed profit and exceptional growth each year and is predicting well over 6 million dollars in revenue in 2021. This year we take on our third mass spectrometer, the powerful Absciex 4500, which will allow us to serve the massive needs of our clientele, which has been under strain. With the procurement of a new QuantStudio 12x we now have the ability to test 1500 Covid19 patients per day. With infectious disease testing validations being completed next week, we will be able to better serve clients all over by creating more robust testing menus and quicker turnaround time for Covid19, UTI, and RPP testing. Furthermore, with the assumption of our Ion S5 GeneStudio NGS testing equipment, we are poised for the huge genetics market that is so underserved.
Safe Harbor Notice
Certain statements contained herein are 'forward-looking statements' (as defined in the Private Securities Litigation Reform Act of 1995). The Companies caution that statements, and assumptions made in this news release constitute forward-looking statements and makes no guarantee of future performance. Forward-looking statements are based on estimates and opinions of management at the time statements are made. These statements may address issues that involve significant risks, uncertainties, estimates made by management. Actual results could differ materially from current projections or implied results. The Companies undertake no obligation to revise these statements following the date of this news release.
Investor caution/added risk for investors in companies claiming involvement in COVID-19 initiatives:
On April 8, 2020, SEC Chairman Jay Clayton and William Hinman, the Director of the Division of Corporation Finance, issued a joint public statement on the importance of disclosure during the COVID-19 crisis.
The SEC and Self-Regulatory Organizations are targeting public companies that claim to have products, treatment or other strategies with regard to COVID-19.
The ultimate impact of the COVID-19 pandemic on the Company's operations is unknown and will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the duration of the COVID-19 outbreak. Additionally, new information may emerge concerning the severity of the COVID-19 pandemic, and any additional preventative and protective actions that governments, or the Company, may direct, which may result in an extended period of continued business disruption, reduced customer traffic and reduced operations. Any resulting financial impact cannot be reasonably estimated at this time.
We further caution investors that our primary focus and goal is to battle this pandemic for the good of the world. As such, it is possible that we may find it necessary to make disclosures which are consistent with that goal, but which may be adverse to the pecuniary interests of the Company and of its shareholders.
SOURCE: RushNet, Inc.
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