CORRECTION — Assure Holdings Reports First Quarter 2021 Financial Results

First Quarter 2021 Managed Case Quantity Elevated 34% to 2,794

DENVER, Might 14, 2021 (GLOBE NEWSWIRE) — In a launch issued beneath the identical headline earlier right this moment by Guarantee Holdings Corp. (TSXV: IOM; OTCQB: ARHH), the CONDENSED INTERIM CONSOLIDATED STATEMENT OF INCOME/(LOSS) desk was omitted and the monetary tables weren’t aligned with the suitable headings. These points have been corrected on this model. No adjustments have been made to any monetary information or textual content on this announcement. The corrected launch follows:

Guarantee Holdings Corp. (the “Firm” or “Guarantee”) (TSXV: IOM; OTCQB: ARHH), a supplier of intraoperative neuromonitoring providers (“IONM”), reported monetary outcomes for the primary quarter ended March 31, 2021.

Administration Commentary

“Guarantee made important deliberate investments within the first quarter to construct the organizational infrastructure needed for supporting dramatically increasing scale pushed by natural and M&A progress, launching a telehealth providing for skilled neurology providers, delivering distinctive high quality of service to the surgeons we help, constructing an industry-leading income cycle administration perform and including competencies that successfully differentiate the Firm from IONM friends,” stated John A. Farlinger, Guarantee’s government chairman and CEO. “On the again of our first quarter investments, we’re already starting to expertise the carry in process quantity anticipated within the second quarter, as Guarantee centered on finishing and integrating current acquisitions. We anticipate our process quantity to speed up considerably within the second half of the yr, as we execute in opposition to our key company aims: scaling our platform by way of each natural progress and M&A, improvement of an in-network income stream, bettering the efficiency of Guarantee’s billing and collections perform and turning into acknowledged medical care leaders within the IONM {industry}.”

“We raised our steerage for full-year 2021 whole procedures to 17,000, representing an anticipated enhance in circumstances of greater than 70% in contrast with 2020 and a rise of 165% since 2019. This displays our confidence in continued robust natural progress and pro-rated contributions from two Texas-based IONM corporations, Sentry Neuromonitoring and Elevation, that Guarantee acquired within the second quarter of 2021. This steerage excludes any potential M&A within the second half of the yr. In 2020, Sentry carried out greater than 5,500 IONM procedures and Elevation carried out roughly 550. These acquisitions are in line with our strategic plan to create scale by augmenting our natural progress with accretive M&A alternatives. In each circumstances, Guarantee’s present presence in Texas supplied the Firm with precious perception on how we will maximize surgeon relationships to win new enterprise, enhance historic collections on a per process foundation and leverage scale to barter new in-network agreements with payors within the native market. The acquisition of Sentry additionally facilitated the enlargement of our operational footprint to 10 states with the addition of Missouri and Kansas, the place Sentry has present operations. We imagine that the ultimate phrases for these acquisitions have been favorable from a cost schedule and value of capital perspective.”

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“One other contributor to progress in 2021 and past is predicted to return from our current enlargement into telehealth by way of the launch {of professional} neurology providers for IONM. The providing is an easy transition as we exchange a third-party vendor with skilled providers furnished by way of an entirely owned subsidiary. Offering telehealth neurology providers on our personal platform ought to permit Guarantee to regulate high quality of service in all points of our IONM providing, which is a key consideration for payors as we negotiate new in-network agreements. Moreover, providing telehealth providers strengthens our providing as we place to promote on to hospitals and enhances continuity with the surgeons we help. It additionally facilitates the seize of a larger share of income and margin on every IONM process in our present operations and positions Guarantee to drive new natural progress. We’re already performing circumstances with the preliminary roll-out centered on offering telehealth neurology providers to Guarantee sufferers, and we in the end anticipate to broaden and help different IONM suppliers and hospitals. Additional, we intend to market this providing to docs and medical teams that want telehealth neurology providers related to epilepsy, electroencephalogram (EEG) and sleep problems, amongst different providers.”

“Guarantee is constant to drive money collections enhancements that started once we introduced income cycle administration in-house after we terminated a legacy third social gathering vendor as a result of poor efficiency. We made investments to speed up collections by automating a course of that had beforehand been virtually fully guide and to develop and enhance our in-network income stream. Practically 30% of Guarantee’s total industrial insurance coverage quantity is now in contractual charges, both straight or not directly with payors, serving to to cut back danger, reduce complexity, shield our liquidity and speed up the timing of funds. Moreover, we lately introduced the signing of an in-network insurance coverage agreement with Aetna Colorado and are in lively negotiations with quite a few different potential companions.”

“Guarantee is coming into the following part of progress and evaluating plenty of promising alternatives which have the potential to considerably drive significant top-line progress and market share seize in 2021 and past. These investments require a specific amount of upfront spending, together with to open new markets, however we imagine that the dimensions we can be gaining could have a considerable and extremely favorable influence on our profitability sooner or later. I’m assured our workforce will proceed to efficiently execute the Firm’s progress plans as we put together for a possible uplisting to a significant U.S. trade later this yr.”

Guarantee can be submitting its quarter-end monetary statements with SEDAR and the SEC at www.sedar.com, www.sec.gov and the Firm web site.

First Quarter 2021 Monetary Highlights vs. First Quarter 2020 (All forex reported in U.S. {Dollars})

• Whole income was $4.eight million versus $4.Three million.

• Managed circumstances elevated 34% to 2,794 versus 2,087.

• Normal and administrative bills have been $3.1 million in comparison with $2.2 million, reflecting our investments to construct Guarantee’s administration workforce {and professional} charges associated to monetary transactions, SEC registration (S-1) and reporting and acquisitions.

• Internet lack of $(1.2) million in comparison with web lack of $(0.4) million.

• Internet loss per diluted share of $(0.02) in comparison with web lack of $(0.01) per diluted share.

• Adjusted EBITDA was $(1.0) million versus $0.2 million.

• The Firm collected $6.1 million in comparison with $5.eight million for a mixture of technical IONM providers and money collected from PEs for skilled IONM providers.

• The Firm collected $3.1 million versus $3.Zero million for IONM income that it retains 100%.

• In March 2021, Guarantee acquired a $1.7 million second draw mortgage supplied beneath the USA Small Enterprise Administration Paycheck Safety Program pursuant to the Coronavirus Help, Reduction, and Financial Safety Act. Guarantee anticipates that each one or a portion of the mortgage can be forgiven because the Firm expects to keep up its employment and compensation inside designated parameters.

Operational Steerage

The Firm forecasts 17,000 whole procedures for full-year 2021, a report quantity representing a rise of greater than 70% in contrast with 2020.

This projection is predicated on natural progress and the acquisitions of Sentry Neuromonitoring and Elevation. It doesn’t account for the influence from anticipated M&A exercise that will happen within the second half of 2021. As well as, the steerage displays the influence to-date of COVID-19, however not a considerable future disruption regarding the pandemic.

Subsequent Occasions: Accomplished Acquisition of Sentry Neuromonitoring and Elevation LP and Debt Settlement Settlement

In April 2021, Guarantee accomplished the beforehand introduced acquisition of all property (the “Acquisition”) of Sentry Neuromonitoring (“Sentry”), one of many largest IONM service suppliers in Texas.

The acquisition of Sentry had 4 main impacts: First, it strengthened and diversified Guarantee’s income stream with a considerable enhance in variety of procedures. Second, it expanded Guarantee’s scale in Texas, which the Firm expects will create extra alternative for in-network negotiations with insurance coverage corporations. Third, it expanded Guarantee’s attain with the addition of Missouri and Kansas, the place Sentry has present operations. Fourth, it’s anticipated to be accretive in 2021 and past.

In 2020, on an unaudited foundation, Sentry generated roughly $5 million of incremental money receipts from income. Sentry’s whole variety of procedures was roughly 5,500 in 2020.

Guarantee paid US$3,500,000 to Sentry (the “Buy Worth”) as consideration for the Acquired Property. The Buy Worth is payable as follows: (i) a money cost of US$1,225,000, payable over a three-year interval, and (ii) the issuance of 1,660,583 frequent shares within the capital of the Firm (the “Widespread Shares”) at a deemed value of US$1.37 per share.

As well as, in March 2021, Guarantee acquired the property of Elevation EP, LLC (“Elevation”), a Texas-based IONM service supplier. In 2020, Elevation carried out roughly 550 IONM procedures.

The Firm additionally declares that it has entered into an settlement to challenge 75,000 Widespread Shares at a deemed worth of $1.53 per share to settle an excellent debt with an arm’s size service supplier (the “Debt Settlement”). The Widespread Shares are topic to a maintain interval in accordance with relevant Canadian and U.S. securities legal guidelines. The Debt Settlement was conditionally accepted by the TSX Enterprise Alternate (“TSXV”) on Might 3, 2021.

The Firm submitted an preliminary itemizing software to checklist on Nasdaq.

Convention Name

The Firm will maintain a convention name right this moment, Might 14, 2021, at 12:00 p.m. Japanese time to debate its first quarter 2021 outcomes.

Date: Friday, Might 14, 2021
Time: 12:00 p.m. Japanese time (10:00 a.m. Mountain time)
Toll-free dial-in quantity: 1-877-407-0792
Worldwide dial-in quantity: 1-201-689-8263
Convention ID: 13719448

Please name the convention phone quantity 5-10 minutes previous to the beginning time. An operator will register your identify and group.

The convention name can be broadcast stay and accessible for replay here.

A replay of the convention name can be accessible after 3:00 p.m. Japanese time on the identical day by way of Might 28, 2021.

Toll-free replay quantity: 1-844-512-2921
Worldwide replay quantity: 1-412-317-6671
Replay ID: 13719448

Non-GAAP Measures

This press launch contains sure measures which haven’t been ready in accordance with Usually Accepted Accounting Principals (“GAAP”) reminiscent of Adjusted EBITDA, case quantity, circumstances and managed circumstances. The non-GAAP measures introduced are unlikely to be corresponding to comparable measures introduced by different issuers. References to Adjusted EBITDA are to web revenue/(loss) excluding curiosity, taxes, depreciation and amortization, share-based compensation, acquire on payroll safety program mortgage and acquire on extinguishment of acquisition debt. Reference to case quantity, circumstances and managed circumstances are to procedures monitored by the Firm. Not one of the foregoing non-GAAP measures is an earnings measure acknowledged by GAAP and do not need a standardized which means prescribed by GAAP. Administration believes that Adjusted EBITDA, case quantity, managed circumstances and circumstances are applicable measures in evaluating the Firm’s efficiency. Readers are cautioned that Adjusted EBITDA, managed circumstances, case quantity and circumstances shouldn’t be construed as alternate options to web revenue (as decided beneath GAAP), as indicators of economic efficiency or to money movement from working actions (as decided beneath GAAP) or as measures of liquidity and money movement.

About Guarantee Holdings

Guarantee Holdings Corp. is a Colorado-based firm that works with neurosurgeons and orthopedic backbone surgeons to supply a turnkey suite of providers that help intraoperative neuromonitoring actions throughout invasive surgical procedures. Guarantee employs its personal employees of technologists and makes use of its personal state-of-the-art monitoring gear, handles 100% of intraoperative neuromonitoring scheduling and setup, and payments for all technical providers supplied. Guarantee Neuromonitoring is acknowledged as offering the very best stage of affected person care within the {industry} and has earned The Joint Fee’s Gold Seal of Approval®. For extra data, go to the Firm’s web site at www.assureneuromonitoring.com.

Ahead-Trying Statements

This information launch might comprise “forward-looking statements” inside the which means of relevant securities legal guidelines, together with, however not restricted to: the Firm’s enlargement and financing and M&A plans; the Firm’s income and money movement; the gathering of excellent quantities owed to the Firm; feedback with respect to methods, expectations, deliberate operations and future actions of the Firm; the maximization of the Firm’s in-network income; the Firm’s enlargement into telehealth and the anticipated results thereof; plans to uplist to a significant U.S. trade; the rescheduling of postponed procedures; the Firm’s accounting practices; the influence of COVID-19; the entire variety of procedures for 2021; collections of accounts receivable together with a significant share of the 2018 reserved receivables and the Acquisition and the anticipated results thereof. Ahead-looking statements might usually be recognized by way of the phrases “anticipates,” “expects,” “plans,” “ought to,” “may,” “might,” “will,” “believes,” “estimates,” “potential,” or “proceed” and variations or comparable expressions. These statements are primarily based upon the present expectations and beliefs of administration and are topic to sure dangers and uncertainties that would trigger precise outcomes to vary materially from these described within the forward-looking statements. These dangers and uncertainties embody, however usually are not restricted to: the Firm’s income accrual charges might expertise important decline in 2021; the Firm might not enhance its scale and broaden into new states in 2021; the Firm’s capability to efficiently broaden; the Firm might not enhance its income and money movement; the Firm’s capability to gather overdue accounts receivable; the accuracy of the reservations made to receivables; the Firm might not be capable of maximize the Firm’s in-network income and negotiate new in-network agreements; the Firm’s enlargement into telehealth might not end result within the negotiation of recent in-network agreements and strengthen the Firm’s place to promote on to hospitals; the Firm might not carry out 17,000 procedures in 2021; the TSX Enterprise trade might not approve the Debt Settlement; all or a portion of the $1.7 million Mortgage is probably not forgiven; the Firm might not keep its employment and compensation framework inside the parameters of the Coronavirus Help, Reduction, and Financial Safety Act; the Firm’s resolution to additional scale back its accrual fee and income per process expectations might not scale back its down-side danger; uncertainties associated to market circumstances and our capability to qualify for an inventory on Nasdaq; the uncertainty surrounding the unfold of COVID-19 and the influence it’ll have on the Firm’s operations and financial exercise on the whole; and the dangers and uncertainties mentioned in our most up-to-date annual and quarterly studies filed with the Canadian securities regulators and accessible on the Firm’s profile on SEDAR at www.sedar.com and people included within the Firm’s registration assertion on Kind S-1 filed with the USA Securities and Alternate Fee and accessible at www.sec.gov. Readers are cautioned to not place undue reliance on forward-looking statements. Besides as required by regulation, Guarantee doesn’t intend, and undertakes no obligation, to replace any forward-looking statements to replicate, specifically, new data or future occasions.

Neither the TSX Enterprise Alternate nor its Regulation Providers Supplier (as that time period is outlined within the insurance policies of the TSX Enterprise Alternate) accepts accountability for the adequacy or accuracy of this launch.

Contact

Scott Kozak, Investor and Media Relations
Guarantee Holdings Corp.
1-720-287-3093
Scott.Kozak@assureiom.com

SCHEDULE A

ASSURE HOLDINGS CORP.
CONDENSED INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(in hundreds of United States {Dollars})

ASSURE HOLDINGS CORP.
CONDENSED INTERIM CONSOLIDATED STATEMENT OF INCOME/(LOSS)
(in hundreds of United States {Dollars}, besides per share quantities)

ASSURE HOLDINGS CORP.
RECONCILIATION OF NON-GAAP ADJUSTED EBITDA TO NET LOSS
(in hundreds of United States Greenback

ASSURE HOLDINGS CORP.
EARNINGS PER SHARE
(in hundreds of United States {Dollars}, besides per share quantities)