Despite $20 million in losses, CEO of Naples health care tech firm invests $1 million.
Dr. Michael Dent, founder and CEO of HealthLynked Corp., a personalized health care network based in Naples, is investing in his company. He is contributing $1 million in financing for the company, according to a recent article by Mark Gordon of Business Observer.
According to PitchBook data, the fundraising round is significant, accounting for around 20% of the company’s total sales of $4.97 million in the fiscal year ending March 31. HealthLynked, which uses cloud-based software to connect doctors, patients, and medical data, was started in 2016 and employs approximately 40 people. It is publicly traded over the counter with the ticker name HLYK.
According to the company, Dent’s investment demonstrates his “unwavering belief in the company’s mission and commitment to protecting shareholder interests as HealthLynked continues to gain traction in the market.”
It also coincides with the company’s transition period. In its first-quarter earnings statement, posted on May 16, the firm stated that while it is “steadfast in its mission to revolutionize global health care delivery,” revenue streams will shift from clinical operations to app-based services by 2024.
Officials say the move is aimed at prioritizing app-based health care solutions such as telehealth services, AI-powered personalized health care guidance, and streamlined appointment booking. “Our commitment to delivering innovative health care solutions remains unwavering as we transition revenue sources from clinical services to our growing network membership over the next 4 to 6 months,” Dent stated in a release dated May 16.
The revenue model transition occurs as the corporation deals with numerous years of losses, including -$10.21 million in fiscal 2021, -$8.86 million in fiscal 2022, and -$1.01 million in fiscal 2023.
According to the release, Dent’s financing is “expected to provide HealthLynked with additional capital to further expand its offerings and accelerate its growth.”
“Providing Funding to HealthLynked is a testament to my belief in the transformative power of our services and our mission to create a more efficient health care system for the benefit of everyone,” Dent writes in the news release.
This article originally appeared on Business Observer