Healwell Al Inc
TSX:AIDX
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Hello and welcome to the Healwell AI First Quarter 2024 Financial Results Conference Call. [Operator Instructions].
I would now like to turn the call over to Pardeep Sangha. You may begin.
Hello. Thank you, operator. Joining me in 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 and analysis, which will be available later tonight on SEDAR+.
Please note, portion 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 law. 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 events, conditions, assumptions or circumstances on which any such statement is based, except as required by law.
We use terms such as adjusted EBITDA on this conference call, which are -- which is a non-IFRS and non-GAAP measure. For more information on how we define these terms, please refer to definitions that are set out in our management discussion and analysis.
And 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 [indiscernible] 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 copilot technologies that can help healthcare providers detect hundreds of diseases, including complex, chronic and rare condition, 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 [ provide ] signals for potential disease in patients earlier, helping to dramatically reduce detection time.
Utilizing AI technologies can allow us to identify patients in a more personalized and proactive manner before their health reaches higher risk stages. I'd like to call [Audio Gap] following which I'll provide a more fulsome discussion highlighting our vision, strategic plan for the company, the tremendous market opportunity and also 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 our mission to revolutionize healthcare and enhance lives through early 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 achieved many to [ key milestones ]. We forged a transformative strategic partnership with WELL Health Technologies, who owns and operates the largest clinic network in Canada [Audio Gap] a shareholder. We completed 3 financings including a $10 million convertible debenture, and [ $8 million bought deal ] equity financing and a $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 $20 million, which we expect to close on or around May 24. [indiscernible] and assuming full uptake on the most recent financing, would effectively bring the total amount of capital raised to $49.5 million [indiscernible] 7 months ago.
In parallel, our M&A team has been very active, having successfully completed 2 exciting [indiscernible] 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 [indiscernible] as highlighted by Pentavere's groundbreaking publication validating the use of generative AI to identify rare [Audio Gap] global first.
In addition, just 6 months after powering our partner, WELL's first generation [Audio Gap] 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 assist with chronic disease detection.
Given the important process of [indiscernible] healthcare ecosystem is the leading cause of death and disability, we couldn't be more proud to bring this profound new capability to physicians with WELL Health and our exclusive role is powering their Well AI decision sport tools and well recently introduced the [indiscernible] AI decision support waves powered by Healwell Technology.
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 strategic mergers and acquisitions. As we mentioned in our Q4 conference call only a few weeks ago, currently, our robust acquisition pipeline positions us [Audio Gap] potentially doubling our current revenue run rate from $20 million to exceeding $40 million annually, leveraging our existing cash reserves. With a strong foundation in place, Healwell is primed for sustained growth.
Beyond our [indiscernible] our key areas of focus include ramping up physician adoption of the Healwell 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, added [indiscernible] commercial agreements and partnership with life sciences companies, health systems and other commercial partners, and broadening the reach of our [indiscernible] adding AI capabilities. We're witnessing an unprecedented opportunity in healthcare AI, we're uniquely [indiscernible].
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 and will 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 the [indiscernible] run rate revenues as the Intrahealth acquisition finalized in February, is anticipated to contribute over $12 million in annualized revenue and [indiscernible] [ positive EBITDA ] for '24. Looking forward, we are optimistic about the prospects both topline and bottom line performance as well as the financial strength of the company.
Our first quarter 2024 results are as follows: [indiscernible] results are our results from continuing operations. Healwell achieved quarterly revenues of $4.58 million in [ Q1 2024 ] compared to a [ revenue growth ] [indiscernible] 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 $2.84 million in Q1 2024 compared to $661,000 during Q1 2023. Healwell's gross margin [ percentage ] volume in 2024 was 62% compared to 33% in Q1 2023. The increase in 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 $2.56 million compared to an adjusted EBITDA loss of $1.86 million in Q1 2023. The larger loss was driven by the [Audio Gap] marketing 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 $11.3 million in cash. Total reported debt was $21.2 million and really consists of $9.6 million in face value of convertible debentures, $7.5 million legacy debt, which is expected to be forgiven in the coming quarters, [indiscernible] loan to WELL for the acquisition of Intrahealth and $1.6 million in low interest loans at Pentavere.
It is important to add, a significant portion of the company's debt is either expected to be forgiven or converted [Audio Gap] somebody at favorable prices. If you assume all of this debt is either forgiven or converted, it would leave the company with only [indiscernible] in debt, of which $5 million is the VTB loan, which will be paid off during 2024, leaving us with the remaining of only [Audio Gap] interest-bearing loans to Pentavere.
As such, on completion of the recently announced bought deal financing, we anticipate having [Audio Gap] to continue fueling the company's acquisition and organic growth strategies. The cash declined from $19.16 million in the year 2023 to $11.3 million at the end of Q1 was largely due to the Intrahealth acquisition, as well as increased marketing activities as we discussed earlier in the call for sales and branding awareness.
Subsequent to the end of the quarter, on May 6, 2024, the company has announced its [ bought deal ] public offering financing at a price of $1.35 per unit for aggregate gross proceeds [Audio Gap]. This offering has been upsized with an option to the underwriters to purchase additional units, which if exercised in full, [Audio Gap] gross proceeds of the offer would be up to $20 million.
In summary, I'm pleased to report that Healwell's outlook is [indiscernible] It's in strong financial position and has capital to fund future acquisitions and execute on its growth strategy initiatives. I'm now handing 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 [indiscernible] more than 1/3 of all Canadian physicians. WELL also has a substantial business in the United States. WELL Health is [Audio Gap].
On February 27, the company appointed Hamed Shahbazi as Chairman of the Board of Healwell. Hamed is currently the Chairman and CEO of WELL Health, and [Audio Gap] Healwell since its launch on October 1, 2023. The appointment of Hamed to the Chair of Healwell is strategically important for shareholders [Audio Gap] given the shared objectives between the companies.
On March 21, 2024, we announced a [Audio Gap] service agreements with both WELL Health USA and U.S.-based Circle Medical Technologies 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 is a multi-jurisdictional clinical footprint, digital tools and the patient volumes while Healwell is artificial intelligence technology and data science capabilities and expertise. [indiscernible] 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. And WELL Health provides us with this access. WELL health effectively white labeling Healwell technology as WELL AI decision support.
That means Healwell and WELL Health introduced the second generation of the WELL AI Decision Support WAIDS. This [indiscernible] features advanced chronic disease screening, including detection capabilities for chronic kidney disease, hypertension and diabetes. WAIDS now identifies over 100 diseases, providing actionable clinical insights at the point of care to aid in patient risk stratification [indiscernible] contribute to the management of chronic disease related costs in Canada estimated at a staggering approximate $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 the [indiscernible] 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 3 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 with the 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 analyzes extensive clinical data sets to extract invaluable insights. These insights are then transformed into actionable recommendations [Audio Gap] with early disease detection capabilities. This proactive approach optimizes the patient care pathway ensuring swift diagnosis and treatment.
Our AI and data science division serves a clientele of life sciences, pharmaceutical met by [indiscernible] 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 6 of the top 10 largest pharma companies in the world. This is a substantial [indiscernible] to all company like Healwell, 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 the potential [Audio Gap] insurance space. I will provide more updates on this in the future.
Our AI and data science business is [indiscernible] beside network. On one side or the life sciences companies and other commercial partners. And on the other side is our compliant acts to [indiscernible] relationships with entities such as WELL health, hospitals and healthcare systems. Although they take additional efforts in [indiscernible] a 2-sided network, in our view once established, these types of networks tend to be durable and highly valuable.
We [indiscernible] contract 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 implications.
The second revenue stream is healthcare, Software as a Service revenue provided by Intrahealth. Intrahealth is enterprise-grade EHR platform and Healwell benefits from Intrahealth's clientele of healthcare providers, [indiscernible] hospital has its extensive network of over 15,000 healthcare service providers across multiple jurisdictions spanning Canada, Australia and New Zealand. Intrahealth SaaS-based model has historically yielded over 80% gross margins. Alongside positive EBITDA and cash flow [indiscernible] portion of revenue deriving from high-margin recurring sources.
The third revenue segment of patient services consists of clinical research delivered by Canada 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, [indiscernible] on a per visit or per project basis and has a track record of positive EBITDA. It also caters to diverse clientele, including [indiscernible] 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 [indiscernible] companies 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 made 2 notable acquisitions [indiscernible] of Intrahealth.
On December 4, Healwell acquired Pentavere Research Group, one of Canada's AI companies focused on early disease detection. Pentavere is a healthcare AI company that helps identify patients for approved medications [ through interventions ] finding effectively patients that have fallen to the [ cracks ]. Pentavere has developed and validated AI capabilities and [Audio Gap] string to action, a key competency to unlock clinical value for patients and providers with a proven track record and commercialization of [Audio Gap] pharma relationships to the Healwell ecosystem.
Then on February 1, Healwell acquired Intrahealth. An [Audio Gap] healthcare service providers across multiple jurisdictions and provides the [indiscernible] to deploy its artificial intelligence technology. Intrahealth is a SaaS-based multinational EHR provider supporting clinicians and [indiscernible] 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 [indiscernible] AI in tools within Intrahealth to create a next-generation AI-powered EHR and 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 [indiscernible].
We have a very full and active pipeline of acquisition opportunities. We are currently looking at numerous compelling acquisitions that follow on 2 distinct categories. The first are AI and data science companies that expand current capabilities and are focused on early disease detection [Audio Gap]. These types of targets are now starting to demonstrate revenue traction and achieve validation that technologies -- for safety and [indiscernible].
This is a very exciting time to be targeting AI-oriented healthcare companies as companies with these types of capabilities simply didn't exist [indiscernible] years ago. 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 companies provide us with a vector of access to more patients, providers and clinical information, but also importantly, have a very strong profile of financial fundamentals perspective with maturing revenues, positive EBITDA and free cash flows. Intrahealth is an excellent example of [Audio Gap] targeting in the second category.
I will now provide brief details further explaining advanced [ clinical decisions ] or in other words, what our physician co-pilot tools and how this ties back to our main strategy. As we continue to plan to expand on our capabilities at Healwell, we will ultimately build a platform that cannot just help screen and risk identify patients for rare and chronic diseases [Audio Gap] to have capabilities to support clinician decision-making across all clinical domains. This is what we mean by advanced clinical decision support and what we're working towards.
As we acquire and also build out these capabilities, we will be continuing to launch in parallel what we [indiscernible] co-pilot tools that will be specific for particular clinical domain. For instance, our first validated and commercialized co-pilots -- [indiscernible] co-pilot that was built under our Khure Health banner and white labeled as well AI Decision Support, which [indiscernible] to its second generation this quarter.
Looking towards the future, you can picture Healwell's AI capability is [Audio Gap] 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 [Audio Gap] 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 and 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 $20 million [ bought deal equity 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's healthcare AI and data science company that has proven results and revenue from 6 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 2 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 [indiscernible] in health care AI and execute against this mission.
Finally, I'd like to thank the entire team at Healwell, whose hard work continue to open 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 would like to thank my Board. 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.
[Operator Instructions]. First question comes from the line of Jason Zandberg with Ventum Financial.
Congratulations on the great quarter, that was better than I had anticipated. So again, congratulations on the strong topline. I'm just wondering if you can break out -- I haven't seen the MD&A so I'm not sure, if you were -- If you could break out the contribution from Intrahealth from those two months after the acquisition was closed.
Yes. Give me one second, Jason, I'll get that for you.
I mean I would make the assumption that it's $12 million run rate, 2 months equals to $2 million, but I'm not sure if there's...
Yes. No, no, that's a fair point. It's pretty close to what you said. It's obviously growing and it's actually did a little better than what we had expected it to do, in the 2 months that we were operating it. So it's actually after a really, really great start. But basically, it was just north of $2 million.
Okay. Perfect. I know it's great. As well, your G&A expense for the quarter was $6.1 million. 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?
Yes. 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 $0.5 million, $525,000.
Okay. So maybe $0.5 million -- $0.5 million to $1 million in sort of noise in the quarter, otherwise, it was...
Yes. And then for the quarter, there was also $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 GnG study in [indiscernible] Hospital, I've talked to a few people that have essentially said that the generative AI that was used to analyze and structure this data, it wouldn't have been possible to do the study without that component. So just wondering, my question sort of is this -- has this work creating sort of ripples in the industry where you're seeing inbound inquiries from other organizations seeking similar services for other studies?
Jason. Really good to speak with you, and thanks for the questions. So the answer to that is yes. And I don't think we'd be in the habit to [indiscernible] every research artifact that we produce -- but 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 and precision on [indiscernible]. So in our view, that was actually a global [ pursuit ]. So we have had some inbounds from all sorts of different things, 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. Again, congrats on the strong quarter, and I'll pass the line.
Our next question comes from the line of Kiran Sritharan with Eight Capital.
Congratulations on the quarter as well. To start here, I'd like to touch on your internal product roadmap as seen with WAIDS and chronic diseases. Are you going to be adding on more speciality diseases there? Or are there other capabilities you want to maybe build without buying?
Yes. Kiran, very good 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 [indiscernible] potentials that we're not going to endeavor to try to build it all organically, but definitely complement through acquisition.
Got it. And your 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, Kiran, one of the important metrics that [Audio Gap] or 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. And then finally here, you have an increased capacity for M&A now. Does this change the profile of the 2 types of targets you're looking at today maybe versus earlier this year? And I'll leave it there.
As I've previously communicated, right, we have confidence in a strong line of sight to doubling our topline. 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, that we may make some adjustments in terms of the profile that we're targeting.
[Operator Instructions]. Our next question comes from Gabriel Leung with Beacon Securities.
Two things. Alex, during your preamble, you alluded to potentially doing some work with private and public insurers. And I'm just curious if you can elaborate a little bit on that and what some of your goals are within that region.
Yes. So Gabe, this is -- it's an important part of our strategy. It's in early days, right? And we've been successfully now commercializing with Life Sciences partners. We're entering our full [indiscernible] for a bit longer. So there's some pedigree in being able to deliver valuable clinical insights to these types of partners.
But where would we see a -- an additional dramatic value opportunity is that partially with -- public sector participants and also on the insurer side, both in Canada [indiscernible]. 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 Science is also in the subscription type format. So there'll be some updates on that front in coming quarters.
Got you. 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, Isn't it -- 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 an 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 [indiscernible] patients at high risk of rare diseases. And also, we announced recently the capability in chronic diseases right? So there's other [ clinical decision support ] that will 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 approved partners. So their adoption and onboarding is very important, right. This is a physician-led company, right, my [indiscernible] and we're always orienting this around, can we actually improve patient outcomes? So that's number one, right? So -- and we rely on our provider partners [ right ] for feedback and how do we improve this technology, et cetera.
But there are other qualities to scale like, for instance, how Pentavere has done some really, really important work with their focus on real-world [indiscernible] that isn't necessarily reliant on any specific provider base, just in partnership and [indiscernible] with other healthcare systems where you can then work with commercial partners, right, without meeting specific onboarding requirements of a number of providers. So to answer your question, right, there's opportunities in both domains, but there's -- where we see the [indiscernible] value of opportunities, of course, working with providers on the 2-sided network, as I explained.
Thank. I would now like to turn the call over to Pardeep for additional questions.
I've received a question here from Michael Freeman of Raymond James by e-mail. He asked with regards to Intrahealth, if you can elaborate on how it makes sense for an Intrahealth platform to [indiscernible] Healwell's route instead of under WELL, maybe just elaborate on the AI next-gen EMR, you're building here at Healwell.
Yes. And I think it was really an appropriate move right, from Intrahealth to come with the Healwell banner, 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 [ AI ], where we have the AI, where we can then level up these companies. So that was a big part of the rationale in bringing Intrahealth under the Healwell banner.
A second question from Michael Freeman from Raymond James. With regards to Khure Health and WAIDS, what kind of feedback have you had in terms of WAIDS thus far? And also the second generation WAIDS screen features, are they being launched among Khure Health other customers as well other than at WELL Health?
So I'll answer the second question, and the answer is yes, right? It's -- this is not just a level up in capability that's only been offered within WELL Health but also -- the other [indiscernible] we're in partnership with that are using the Khure Health platform. And to answer the first question, we have resoundingly positive feedback. And I think I'll highlight 1 particular individual, the Chief Medical Officer of WELL Health, he was able to harnesses this technology, use it, test it, and I believe was really impressed with its capabilities. And he's also a practice physician and in his clinical practice, live, we were able to help [indiscernible] 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 e-mail. Operator, can you provide the instructions again for questions?
[Operator Instructions]. 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 the questions Everyone, please 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.