Uphealth (UPH) investor relations material

Executive summary

• UpHealth completed the sale of Cloudbreak for $180 million, using proceeds to pay down debt and fund operations; the company no longer operates Virtual Care Infrastructure or Integrated Care Management platforms, focusing on Services through TTC, which remains deconsolidated due to bankruptcy proceedings.

• UpHealth Holdings and key subsidiaries remain in Chapter 11, with ongoing restructuring and a proposed sale of TTC to fund a plan of reorganization; there is substantial doubt about UpHealth's ability to continue as a going concern.

• The company reported no revenues for Q1 2024 due to the sale and deconsolidation of major business units; net income was driven by discontinued operations, primarily the gain on the Cloudbreak sale.

Financial highlights

• Q1 2024 total revenues: $0, down from $24.7 million in Q1 2023, due to asset sales and deconsolidations.

• Net income for Q1 2024: $25.4 million, compared to a net loss of $8.1 million in Q1 2023, primarily due to a $37.3 million gain from discontinued operations (Cloudbreak sale).

• Gross profit for Q1 2024: $0, down from $12.5 million in Q1 2023.

• Operating expenses for Q1 2024: $5.4 million, down 72% year-over-year.

• Cash and cash equivalents at March 31, 2024: $1.0 million, with $169.4 million in restricted cash.

Outlook and guidance

• No revenues, gross profit, or costs of revenues are expected for the remainder of 2024 due to the sale and deconsolidation of operating businesses.

• The company anticipates a decrease in operating expenses and interest expense as debt is paid down and operations are further reduced.

• UpHealth's future depends on the outcome of the Chapter 11 process and the potential sale of TTC; there may be little to no residual value for shareholders.