United American Healthcare Corporation Reports Strong Income Growth in Q3 Fiscal Year 2017 Propelled by Performance of its Wholly Owned Subsidiaries

CHICAGO, Jan. 23, 2018 (GLOBE NEWSWIRE) -- United American Healthcare Corporation (OTC:UAHC) (the “Company” or “UAHC Parent”), today announced the release of its unaudited third quarter report ending September 30, 2017. The quarterly report can be found here. Additionally, the Company provided a summary of financial results from the report and an overview of recent operational highlights.

The Company experienced significant income growth in the three-month and nine-month periods ending September 30, 2017, driven by strong performances from the Company’s wholly owned subsidiaries Pulse Systems, LLC (“Pulse”), a contract manufacturing company that provides services to the medical device industry, and newly formed UAHC Ventures, LLC (“UAHC Ventures”), a strategic investment organization focusing on opportunities in emerging and high-growth sectors such as blockchain technologies and cryptocurrency.

UAHC Parent reported a consolidated year-over-year third-quarter increase in net income of 668% and a net comprehensive income increase of 1,312% for the same period. Further, for the nine-months ending September 30, 2017, the Company reported a year-over-year increase in net income of 452% and an increase in net-comprehensive income of 828%.

Other financial highlights for the year-to-date period ending September 30, 2017, include:

  • An increase in total assets of 165% as of September 30, 2017, compared to December 31, 2016;
  • An increase in the total shareholder equity of 137% as of September 30, 2017, compared to December 31, 2016;
  • A year-over-year increase in gross profit from manufacturing services of 7.75% and 32% for the three-month and nine-month periods ending September 30, 2017, respectively; and
  • An increase in earnings per share from net income of 300% for the nine-months ending September 30, 2017, compared to the nine-months ending September 30, 2016.

Pulse Systems, LLC
Pulse experienced positive growth in sales revenue during the third-quarter of 2017, achieving shipments of $2.68 million compared to shipments of $2.17 million in the third-quarter of 2016, which represents a 23% increase between the comparative periods. Additionally, for the nine-month period ending September 30, 2017, shipments were $7.92 million, compared with $6.73 million for the equivalent 2016 period, resulting in a year-over-year increase of 18%. This sales growth was largely the result of strong customer orders that were successfully converted to shipment revenue through the expansion of Pulse’s laser machining operations including increasing manufacturing capacity through the addition of a third operating shift.

Further, Pulse’s management has focused on generating new customer accounts and retaining core customers by further investing in its sales and marketing efforts, and making capital investments in state-of-the-art equipment that enhance its competitiveness through its ability to provide customers with a more diverse range of manufacturing capabilities at competitive pricing, all while maintaining its high standard of quality. Management also improved organizational efficiencies and developed more effective cash management strategies that have resulted in higher margins and a reduction in debt.

Pulse’s Chief Executive Officer, Herb Bellucci, commented that “Contract manufacturing activity in the medical device industry appears to have built momentum in 2017. As a leading indicator of continued growth in our market segment, we have experienced an impressive increase in the number of quote requests from potential customers of more than 40% this year versus last. In response to this significant business opportunity, Pulse has invested in customer service capabilities and personnel to further improve our communications and responsiveness, and to capture and support this new business.”

UAHC Ventures, LLC 
UAHC Ventures made its first investment in Q3 2017 through a $2.0 million purchase of a secured convertible promissory note (“Note”) and warrant to purchase common stock (“Warrant”) from MGT Capital Investments, Inc. (OTC:MGTI) (“MGTI”), the proceeds from which were for funding MGTI’s further expansion and development of its bitcoin mining operations. The Company’s valuation of its UAHC Ventures’ investments in MGTI for the period ending September 30, 2017 resulted in the Company reporting unrealized gains of $7.14 million in consolidated net income from the change in value of the Warrant and an additional $5.94 million of unrealized gains in consolidated other comprehensive income from the change in value of the Note.

“The first three quarters of 2017 were an extremely exciting time for UAHC,” said John Fife, Chief Executive Officer of UAHC and President of UAHC Ventures. “We made a well-timed strategic investment through our UAHC Ventures subsidiary that resulted in initial valuation results, indicating the likely future realization of a substantial return on investment. Also, Pulse Systems was able to focus on fundamental organizational and operational business initiatives that have shown an immediate positive impact on the company’s profitability, which will contribute to its continued success. I am confident in these companies as well as UAHC’s performance as a whole as we review the final financial results for fourth quarter of fiscal year 2017, and as we move into fiscal year 2018.”

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 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, and 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 at