Attached files
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| 8-K - UAHC 8-K - UNITED AMERICAN HEALTHCARE CORP | uahc8k.htm |
Exhibit 20.1
United American Healthcare Corp
Annual Meeting December 8, 2011
Management Presentation
Description of Business
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From November 1993 to June 2009 UAHC Health Plan of Tennessee, Inc provided managed care benefits in the TennCare program
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The TennCare operations are closed and substantially complete
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June 18, 2010 UAHC acquired Pulse Systems LLC
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Pulse Systems LLC
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Provides contract manufacturing services to the medical device industry
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Precision laser-cutting
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Processing of thin-wall tubing
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Restructured bank debt terms with the Fifth Third Bank in June 2011 to provide increased borrowings for capital equipment and expansion of services
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Fiscal Year 2011 Financial Results
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Net loss of $7.1 million – loss of $.73 per share
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Pulse Systems LLC – Net income of $0.9 million
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Corporate Operations had a loss of $8.4 million
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Majority of corporate loss resulted from charge related to the change in fair value of the put obligation and professional fees
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Cash and investments were $1,500,000 at year end 6/30/11
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Most of cash is at Pulse and restricted pursuant to loan covenants
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Quarter-1 Financial Results
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Net loss of $640,000 – loss of $.06 per share
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Pulse Systems LLC – Breakeven for the first quarter
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Corporate Operations were loss of $657,000
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Majority of corporate loss related to interest expense, professional fees and insurance
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Cash and investments were $1,600,000 at end of Q-1
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Most of cash is at Pulse and restricted pursuant to loan covenants
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Significant Events
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Closed Michigan offices and moved operations to Chicago, Illinois
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Change of Management and reduction of operating expenses
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Settled “STEP-Galloway” litigation in conjunction with St George Investments LLC
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Ongoing Obligations
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Monthly Working Capital - $10,000 to $20,000
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Monthly D&O Insurance - $11,000
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Monthly Pulse Sellers Note $50,000, Balance $300,000
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Monthly Redemption of Pulse Preferred Units $40,000 and balloon payment of $1,360,000 June 2012
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Monthly Payment to William Brooks of $10,000 until Mach 2012 and a final payment of $160,000 in cash or art due December 2011
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A Payment to STEP in the amount of $225,409 payable from sale of art, or earlier of receipt of escrowed monies from the State of Tennessee or a refinancing of the Pulse Systems LLC Fifth Third credit facility or June 12, 2012
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Fifth Third Bank loan to Pulse Systems LLC $2,437,500 due June 2013
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Need for Additional Capital
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The Company needs to find additional debt or equity capital to fund the ongoing obligations
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Capital may be provided by affiliates such as members of the board of directors
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Any financing may result in significant dilution of the Company’s existing shareholders
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The Company is receptive to financing proposals from any shareholder
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