Authentidate (“the Company”) provides secure web-based software applications and telehealth products and services. The Company’s offerings enable healthcare organizations to increase revenues, improve productivity, enhance patient care, and reduce costs by eliminating paper and manual work steps while enhancing compliance with regulatory requirements. Authentidate’s customers include leading homecare companies, health systems, physician groups, and government organizations aiming to improve workflow efficiency and reduce the estimated $600 billion healthcare organizations spent on paperwork annually.
Authentidate web-based software applications integrate to form a continuum of care solution for health care providers (illustrated in the Figure below). The Company’s web-based applications incorporate workflow automation, electronic signatures, and transaction management capabilities based on its proprietary Inscrybe® platform. With web-based software like Inscrybe® Hospital Discharge and Inscrybe® Healthcare Referral and Order Management, users can streamline critical workflows, including referrals, order processing, hospital discharge referrals, secure patient communications, and other important healthcare processes. At present, there are approximately 1,000 customer locations and 100,000 referring physicians using the Inscrybe® Healthcare Referral and Order Management systems, generating recurring revenue based on transaction volumes, as well as through monthly subscriptions.
Moreover, Authentidate’s offerings also includes the ExpressMD™ remote patient monitoring solutions, incorporating Electronic House Call™ (EHC), an FDA 510(k)-cleared in-home patient vital signs monitoring system; Interactive Voice Response system, for phone-entered results; and a web application based on the Inscrybe® platform that enable caregivers to securely yet remotely monitor patients. Through the development of its remote monitoring solutions, Authentidate is working to improve care for patients with chronic illnesses, such as congestive heart failure (CHF), chronic obstructive pulmonary disease (COPD), diabetes, and sleep apnea. Both Inscrybe® and ExpressMD™ have shown to offer significant reductions in administrative and patient care costs while improving care.
Authentidate believes that it is well positioned for growth based on current levels of customer interest, large addressable markets for its products and services, increasing awareness of its solutions, and the experience of its management. Company growth may also be positively impacted by national healthcare reform and industry trends toward reducing hospital stays, readmissions, and costs of care by improving in-home and preventative care, automation, and accountability.
Second Quarter FY 2012 Highlights
- For the first six months of FY 2012 (ended December 31, 2011), Authentidate reported revenues of $1,412,000 versus $1,428,000 for year-ago period due to greater revenues from telehealth products and services offset by lower revenues from hosted software services.
- During the period, the Company deployed telehealth infrastructure at the U.S. Department of Veterans Affairs (VA) in Austin, Texas, as well as received initial product orders and commenced the training for four additional regions designated by the VA for this project. The contract for the supply of home telehealth solutions to VA facilities, was awarded to only six companies and could be valued at up to $122 million for Authentidate, depending on the number of units purchased during the base year and during four consecutive one-year renewal options.
- On November 21, 2011, the Company completed a transaction with EncounterCare Solutions, Inc., its former joint venture partner in ExpressMD™ Solutions, LLC, by which the Company acquired full ownership of ExpressMD™ as well as a global royalty-free license to use EncouterCare’s intellectual property for the continued to commercialization and development of the remote patient monitoring devices and services. With this transaction, ExpressMD™ became a wholly owned subsidiary of Authentidate.
- On October 7, 2011, the Company announced that it entered into agreements with institutional and accredited investors for a direct placement of $4,112,500 of Common Stock and Warrants at a unit price of $0.70 per share and warrant. Through this offering, Authentidate received net proceeds of over $3.6 million. At December 31, 2011, Authentidate held cash, cash equivalents, and marketable securities of approximately $2.1 million and working capital for continuing operations of nearly $4.2 million.