CHICAGO, Dec. 29, 2017 (GLOBE NEWSWIRE) -- United American Healthcare Corporation (the “Company”), today announced that it plans to release its consolidated financial operational results for the three and nine months ended September 30, 2017 by December 31, 2017.
UAHC Ventures, LLC
The Company’s wholly-owned subsidiary, UAHC Ventures, LLC (“UAHC Ventures”), was formed on July 21, 2017 with the purpose of pursuing strategic investment opportunities in growth industries such as digital currency. On August 23, 2017, the Company announced that UAHC Ventures partnered with MGT Capital Investments, Inc. (“MGTI”) by investing $2 million in MGTI through the purchase of a Secured Convertible Promissory Note (“Note”) and Warrant to Purchase Common Stock (“Warrant”), the proceeds of which were to be utilized by MGTI to further expand and develop its Bitcoin mining operations.
UAHC Ventures purchased the $2,410,000 face value Note at a $400,000 discount (the “Note Discount”). Additionally, transaction costs of $10,000 were included in the initial principal balance of the Note. Generally Accepted Accounting Principles (“GAAP”) require the Company to recognize periodic interest income related to the Note Discount over the expected life of the investment at the Effective Interest Rate of the Note, which is 99.9%. Additionally, the convertible features of the Note and the structure of the Warrant, including conversion and exercise prices that are at a discount to MGTI’s market price as of September 30, 2017, have implied values that have also been recorded in accordance with GAAP in the Company’s third quarter fiscal year 2017 consolidated financial statements. The captured value of the Note Discount and implied values of the Note and Warrant have had a positive impact on the Company’s financial results.
Pulse Systems, LLC
The Company’s wholly-owned subsidiary, Pulse Systems, LLC (“Pulse”), is a contract manufacturing company that provides services to the medical device industry. Pulse’s Sales Income grew by 17.8% year over year for the nine months beginning January 1st and ending September 30th. This increase in Sales Income combined with reductions in Pulse’s cost of goods sold during the nine months ended September 30, 2017, resulted in a year over year increase in Gross Profit of 34.5%.
Additionally, Pulse implemented effective cash management strategies in fiscal year 2017 to date that have resulted in a significant year over year decrease in debt, while also investing capital into state of the art technology and equipment that enhances their competitiveness and their ability to provide its customers with the highest standard of manufacturing services.
About United American Healthcare Corporation
United American Healthcare Corporation (“UAHC”), through its subsidiary, UAHC Ventures, LLC, pursues strategic investment opportunities in various growth industries. Additionally, UAHC, through its subsidiary Pulse Systems, LLC, is a contract manufacturing company that provides services to the medical device industry.
Forward-looking Statements
This press release contains forward-looking statements. The words or phrases "would be," "will allow," "intends to," "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project," or similar expressions are intended to identify "forward-looking statements." All information set forth in this news release, except historical and factual information, represents forward-looking statements. This includes all statements about the Company's plans, beliefs, estimates and expectations. These statements are based on current estimates and projections, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These risks and uncertainties include issues related to: rapidly changing technology and evolving standards in the industries in which the Company and its subsidiaries operate; the ability to obtain sufficient funding to continue operations, maintain adequate cash flow, profitably exploit new business, license and sign new agreements; the unpredictable nature of consumer preferences; and other factors set forth in the Company's most recently filed annual report and registration statement. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. Readers should carefully review the risks and uncertainties described in other documents that the Company files from time to time with the U.S. Securities and Exchange Commission.