Shareholder Update - February 2022
Read the Latest Analyst Coverage
Analyst: Theodore O’Neill
Firm: Litchfield Hills Research, LLC
Telephone: 860-435-0150
Email: Theodore@HillsResearch.Com
https://www.usaqcorp.com/analyst-coverage
Dear Shareholder,
We hope this correspondence finds you well and healthy during this time. It is our distinct pleasure to share with you the progress made by USA Equities Corp (USAQ) during 2021 and relay some of our plans for the new year. We've experienced tremendous growth throughout 2021 and gained momentum throughout the year coming into 2022.
What We've Accomplished in the Past Six Months:
In early June, USA Equities Corp acquired the method patent, trademark, and website associated with AllergiEnd®'s diagnostic and allergen immunotherapy product portfolio from MedScience Research Group, Inc. This acquisition allowed USAQ to integrate and leverage the AllergiEnd® product portfolio and increase revenue. Later in June, USAQ entered a distribution agreement with a prominent physician management services organization for AllergiEnd® products and services, facilitating the working relationship between USAQ and physicians while providing marketing and advertising expertise.
August marked another milestone by publishing an original research paper entitled "Allergies in Primary Care: A Study of the Allergy Management Evaluation (AME) Tool" on Consultant360.com, a direct-to-practitioner website. This research evaluated the QHSLab Allergy Assessment and highlighted the attractiveness of our targeted solutions and strong value proposition. In addition, this study demonstrated that (1) patients rated the user interface "easy to navigate" and "easy to answer all the questions" (2) clinicians found the patient reports were "easy to interpret" and "useful additions to their patient encounter," and (3) that future integration of the AME with electronic medical records would be advantageous for managing clinician workflow efficiency. August concluded with the announcement of strong financial results and a successful $750,000 raise.
The third and fourth quarters of the year also marked significant product development growth for USAQ, including the launch of the "Q-Scale" in October. The Q-Scale ("Quality of Life" Scale) was designed to meet the growing demand for mental health services and strengthen USAQ's product portfolio. The Q-Scale assesses and screens patients for mental and emotional health-related issues while providing reimbursements for physicians for offering the assessment. As a result, revenue surpassed $1 million in the nine months ending 2021, compared to $0 for the same period in 2020, and our gross margin of 48% increased 290 basis points versus Q2 2021.
To close 2021, USA Equities Corp introduced the AllergiQT™ – Quick Test, an FDA-cleared skin test for environmental and food allergens designed for non-allergy specialists in primary care settings. This launch strengthened USAQ's comprehensive allergy treatment plan and addressed a market of more than 60 million Americans with allergic disorders.
Our Dynamic Plans for 2022:
USA Equities Corp (USAQ: OTCQB) provides primary care physicians digital medicine solutions and point of care diagnostic tests. Our flagship product, QHSLab, has garnered brand recognition, and we have decided to make QHSLab, Inc. our permanent name effective December 2021.
Under its new name QHSLab, Inc., USA Equities Corp will continue to expand its unique digital medicine platform that uses a systems-based approach, prioritizing prevention and disease management. Our robust platforms include numerous screening assessments, point-of-care diagnostics, home therapeutic monitoring, and specialty pharmacy treatments that address the root causes of chronic disease, not merely the symptoms. For example, individuals with chronic illnesses often present to their doctors with other comorbidities. In addition, if they are newly diagnosed with a chronic disease, patients will often progress to other disease states if risk factors and lifestyle behaviors remain unchecked. QHSLab offers a comprehensive platform, not a single product for a single condition, and continues to develop those proprietary solutions. The highest level of patient care centers around a holistic approach, and physicians, to provide this care, need a platform that meets this demand. In addition, patients want a unique and personalized experience from their doctor, and doctors are prioritizing complete, patient-centered care.
Today's electronic medical records are not providing this window into the practice and are therefore insufficient in their ability to inform patient care. In addition, physicians are working longer hours to meet patient demands. Our platform views physicians' entire population instead of individual patients, stratifying the data and providing a visual representation of this population's risk profile of their patients. We will soon release digital medicine instruments for managing hypertension, chronic pain, and sleep apnea, growing our revenue per customer and putting even more power in the hands of the independent primary care physician practice.
Sales and Marketing Strategy:
USA Equities Corp has a defined target audience of 250,000 independent primary care providers in the United States. However, data procured through survey assessments suggest that 30% of primary care physicians in the United States (approximately 75,000 providers) are currently or intend to begin services such as QHSLab. Therefore, our near-term goal is to recruit 5,000 provider customer accounts (~7% of those who reported that they intend to start a service like QHSLab), purchasing $10,000 - $20,000 worth of annual products and services ($50-100mm yearly revenue).
We base our target list on actual physician behaviors, including data on services offered by their practice, their relevance to our platform, and filtered based on geographic location. Our marketing strategy combines traditional outreach approaches, grassroots prospecting efforts, and digital advertising, including email, fax, telemarketing, targeted digital ads, direct mail, canvassing, referrals, and more. We also provide a myriad of educational opportunities, including e-learning, expert-led webinars, and CME workshops in partnership with the University of Miami Miller School of Medicine. Current distribution channels include MSO's and IPA's, with plans to expand through local and national distributors and GPO's.
On behalf of the entire USAQ team, we thank you for your investment in the #FutureofMedicine. We're proud of the tremendous strides made in 2021 and look forward to continuing the momentum and surpassing expectations throughout 2022 and beyond.