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United American Healthcare Corp (OTCMKTS:UAHC) Is Proving Its Resilience

United American Healthcare Corp (OTCMKTS:UAHC) Is Proving Its Resilience
Written by
Jim Bloom
Published on
December 22, 2017
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United American Healthcare Corp (OTCMKTS:UAHC), by its core operations, was expected to lose value, especially when its stagnant revenues and declining OPEX were considered. However, the stock’s price has rallied, as a result of the performance of its subsidiaries and the income from other operations. In this article, we provide details on UAHC and what its subsidiaries have been up to in recent months.Here is the stock’s price movement below: UAHC Daily ChartBrief HistoryUnited American Healthcare Corp. was founded in 1983 and is based in Chicago, Illinois, it is a healthcare management company which provides contract manufacturing services to the medical device industry, with a focus on precision laser-cutting capabilities and the processing of thin-wall tubular metal components, sub-assemblies and implants, primarily in the cardiovascular market. It provides services through its wholly owned subsidiary, Pulse Systems LLC., which provides contract manufacturing services to the medical device industry including laser-based metal fabrication services, supplying precision components to customers developing products for use in a wide range of medical specialties, including cardiology, neurology, orthopedics, gynecology, ophthalmology and urology. The company also offers an array of surface treatment options to medical device manufacturers for electropolishing, passivation, and grit-blasting. Its components are used in medical device applications, such as cardiovascular stents, heart valve replacements, arterial wound closures, spinal repairs, breast biopsies, and brain aneurysm repairs.The firm also pursues strategic investment opportunities in high growth industries through its fully owned subsidiary UAHC Ventures.Recent DevelopmentsIn October, UAHC Ventures, LLC, a wholly-owned subsidiary of United American Healthcare Corporation, revealed that it had invested $600,000 with SinglePoint, Inc through the purchase of a Secured Promissory Note and Warrant.In exchange for UAHC Ventures’ investment, SinglePoint, Inc has issued UAHC Ventures both a Secured Convertible Promissory Note in the original principal amount of $0.67 million and a warrant to purchase five million shares of SING’s common stock. Monthly redemption payments due under the financing begin twelve months following the close of the transaction and may be made in cash or by converting redemption amounts into shares of SinglePoint, Inc’s common stock.UAHC Ventures was formed to pursue strategic investment opportunities in high growth industries. SinglePoint, Inc specializes in the development of mobile bitcoin payment platforms which will be designed to meet the high demand for customer payments solutions in the cannabis and medical marijuana industry.As at May 2017, Pulse Systems LLC, another subsidiary of United American Healthcare Corporation made a major investment in a state-of-the-art Tsugami Laser-cutting System. The investment in the new technology is cost effective for medical device product developers, and increases efficiency by combining CNC machining and laser cutting in a single setup.The Tsugami Laser combines features of both a Swiss Screw machine (see explanation here) and a laser tube cutting system by adding a fiber laser cutting head to a standard screw machine. The laser is essentially acting as an additional "live tool" with unique capabilities in laser cutting of thin wall materials, in addition to the conventional turning and milling capabilities of a Swiss screw machine.Pulse's Tsugami Swiss Laser is equipped to run materials (tubing or solid bar) in any size from 0.8mm to 20mm (.031" to .787") diameter. The particular Swiss Laser configuration that Pulse has implemented has been uniquely developed to particular specifications, and is capable of 11 axes of motion.Designs that previously would have required costly secondary operations can now be fabricated in a single set-up for production. For prototyping, especially in materials not commonly available as tubing (i.e., titanium or non-standard stainless steel alloys), laser-cut prototypes can easily be produced from solid bar by drilling and turning prior to laser-cutting, eliminating the need for custom ordering of expensive and long lead time tube materials.Company FinancialsThe firm’s revenues suffered a slight decline, falling from $8.99 million in 2015 to $8.87 million in 2016, a drop of 1.33%. However, the increase in SGA expenses dropped operating income (EBIT) by over 50% across 2015 and 2016.The year ended on a positive note however, as additional income from other operations was as high as $1.68 million leading to net income of $1.4 million, a massive turnaround from a net loss of $0.82 million in 2015.The income statement shows that the firm is highly geared, with its total liabilities more than double its total assets. This is likely to have contributed to its increase in cash on the company’s books although liquidity remains very low at 0.15.ConclusionAlthough its performance has not been at the level of investors’ expectations, UAHC has continued to show commitment to improving its business and maximizing shareholder value.We will be updating our subscribers as soon as we know more. For the latest updates on UAHC, sign up below!For the full story, check out our complete coverage on UAHC.Disclosure: We have no position in UAHC and have not been compensated for this article.

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