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spk00: Thank you, and good morning.
spk02: I want to welcome all the participants to our MARPE Investor Webcast. I'll start with the necessary safe harbor agreement. Please bear with me. It's a lot of legalese. So this presentation and the statements of representatives and partners of MARPE Inc., the company, related thereto contain or may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other U.S. federal securities laws as amended. Statements that are not statements of historical fact may be deemed to be forward-looking statements. For example, when it discusses expected cost reductions, the expected time of certain planned company events, and growth in the future. The company is using forward-looking statements in this presentation when it discusses the benefits to be derived from the company's products, the expected timeline of certain planned company events, the expected benefits to be derived from the acquisition of Maestro Health, including number of live expected revenue and cash on hand, and the company's trends, market penetration, and growth in the future. Without limiting the generality of the foregoing, words such as plan, project, potential, seek, may, will, expect, believe, anticipate, intend, could, estimate, or continue are intended to identify forward-looking statements. Forward-looking statements are based on management's current expectations, estimates, projections, and assumptions about future events and are subject to several factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions about the company, which are difficult to predict. including projections of the company's future financial results, its anticipated growth strategies, and anticipated trends in the business and in the market generally. Readers are cautioned not to place undue reliance on these forward-looking statements, which will reflect the company's current expectations and speak only to the data of this presentation. Actual results may differ materially from the company's current expectations, depending on a number of factors. These factors include, among others, adverse changes in general economic and market conditions, competitive factors including but not limited to pricing pressures and new product introductions, uncertainty of customer acceptance of new product offerings and market changes, risk associated with managing the growth of the business, additional factors that could cause or contribute to differences between the company's actual results and the four looking statements include, but are not limited to, those risks discussed in the company's filings with the U.S. Securities and Exchange Commission, the SEC, including, but not limited to, the risks detailed in the company's annual report on Form 10-K for the fiscal year ended December 31, 2022, and any subsequent filings with the SEC. Readers are cautioned that actual results, including without limitation the timing for and results of the company's plan as described herein, may differ significantly from those set forth in the forward-looking statements. The company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law. I want to say a reminder that we will not be taking questions live during today's webcast. For those of you who submitted questions ahead of time, we tried to integrate those answers within our presentation. And at the end of the presentation, you will see the information to submit additional questions that we will address either on our investor website through a Q&A or in a future webcast. And now I will turn it over to our Chief Executive Officer, Damian Amendola, to review today's agenda.
spk01: Good morning. Today we will cover five key agenda items with you. First, we will discuss the recent changes in leadership and executive management. Second, we would like to share with you the recent actions that MARPE has undertaken. Third, we will review several key initiatives that MARPE has in place to execute. And finally, we will share MARPE's strategic vision.
spk02: Thank you, Damien. It is my pleasure to formally introduce Damien Lamandola, our new Chief Executive Officer. Damien is a serial entrepreneur and founder of several healthcare-based businesses with a background in chemical engineering and a history of growing healthcare businesses to profitable billion-dollar companies. Damien sold a national PBM, a pharmacy benefit management company, WellDineRx, to the Carlisle Group in 2017. In addition, he founded Continental Benefits, a national independent third-party administrator, in 2013 and sold it to Marpay in 2021. He also serves as a director for Marpay Inc. Damien currently serves as the president of Hillcore Holdings, a family office focused on healthcare, real estate, technology, and private equity investments. Damien and his affiliated companies is the largest shareholder in Marpay.
spk01: Thank you, Steve. It's my pleasure to introduce Steve Johnson as Marpay's new Chief Financial Officer. Steve also serves as the Chief Financial Officer for Hillcorp Holdings and was formerly the Chief Financial Officer for Continental Benefits. Steve has worked for Hill Corps over seven years and has tremendous experience in finance and accounting in multiple industries. Steve is a former Navy officer and graduate of Columbia Business School with dual concentrations in finance and accounting. And finally, I'd like to also highlight our new board member, Mike Bindi. Mike is currently serving as a Chief Financial Officer of Care and Health, which provides a cloud-based platform that is secure, scalable, and customizable. Previously, Mike founded Advanced Medical Pricing Solutions, or AMPS. AMPS is a national leader in healthcare cost containment solutions. Under Mike's leadership, AMPS drove tens of millions of dollars of client savings during his tenure. Mike brings to Marpay over 30 years of experience in healthcare benefits. Mike is a welcome addition to our board.
spk02: Now we'll go over some of our recent actions. It's been a busy month for Damien and me as we joined the Marpay executive team on November 6th. Our prior experience with Connell Benefits and Damien's position on the Marpay board allowed us to hit the ground running. I'd like to cover some of the recent actions that we have undertaken. First, we withdrew our S-1 registration as market conditions were not suitable for Marpay or really any other small cap stock to raise equity. We followed that with an immediate cost reduction action to help extend our cash flow. We executed a 20-person reduction in force, which is expected to save over $3 million annually with a one-time severance cost of approximately $200,000. We are also in the process of negotiating a significantly reduced cash severance packages with our former executive team. And there remains a strong commitment by senior leadership where recent purchases within the past two weeks by our chairman and Damien, which were both released in S4 filings with the SEC, your own Etienne bought 100,000 shares and Damien bought 200,000 shares. We also are working on some additional initiatives. MARPE is in the process of selling a non-core asset. We are also in negotiations with AXA to extend the payment term associated with the acquisition of Maestro. Details to be provided once confirmed through an 8K. However, I am at liberty to say that the current $900,000 that is, slated to be due December 31st. AXA has agreed to split those payments equally over the next six months and we're making the first payment tomorrow and we'll be making subsequent payments on the 15th of the month for the next five remaining months. And again, once We have those details. We'll, of course, release them in a 8K. And we're also actively working on additional sources of non-dilutive capital. And once confirmed, those details will also be released in a future 8K. As you can see, our immediate focus is righting the ship. Demianet will now cover some of our near-term objectives.
spk01: Thanks, Steve. One of the key issues we saw was that Marpay needed to do a better job of the basic blocking and tackling to support our clients as we got distracted by the integration of Maestro. Focusing on claims processing turnaround, our customer service average speed answer, claims processing accuracy are just a few of the operational metrics that we've targeted for immediate improvement. We're also hiring an additional core PPA industry expertise while also leveraging our relationships to drive new business in Q1 of next year. While a significant number of large employers are on a calendar-based health plan, one of the key advantages of our small business group program is that they renew throughout the year, allowing us to capture new business in the off cycle. We are also targeting key board replacements with expertise in finance and marketing. We've reached out to several of our top clients and will be implementing and executive sponsorship program to make sure we're taking their feedback to heart. Many of them have shared great ideas that we can put in place immediately. We're also targeting our organic sales growth on low-margin, high-labor industries that can benefit from our cost containment and value-based programs, achieving cost reductions in year one. MarketPay continues to drive proactive, outcome-driven care for our members while providing – with proven clinical solutions and world-class partners. We will complete our ongoing plans and focus on the core programs while making improvements with our existing customers.
spk02: Dave? Thank you. As we transition to the strategic vision of MARPE and detailing that, I'd like to point to the chart that you see on your screen is health insurance is – the second largest cost expense to a company, just behind the actual employee compensation. We believe MARPAY is uniquely qualified with national coverage through the Aetna and Cigna networks, along with our datalytics and value-based care partners, to bring this major employer cost down for our clients and their employees. What's very interesting in this graphic is it shows that while 82 cents of every dollar is spent on actual healthcare services, we have found in our RFP and quoting process that many companies just look at the administrative fees, which is typically less than 5% of healthcare spend when they're doing their cost comparison. And they miss the opportunity to have Marpay take a holistic approach to reducing the cost of healthcare for them and their members. Our vision is to achieve double-digit cost savings on the 82 cents of every dollar that is spent on actual healthcare services. We need to continue to educate our customers and future customers that this is the biggest opportunity for them to reduce the cost of healthcare.
spk01: On this slide, I'd like to point out that We believe that MARPE has key advantages with our robust data analytics and artificial intelligence algorithms to identify and provide active consultation and programs to address the issues quickly before they become high-cost treatment protocols. Think of the movie Moneyball, where a baseball team takes the data from all the previous games and predict the quality of players and how certain teams perform. MARPE does the same thing, but uses claims history and the proprietary algorithms, save customers and our members money, and provide better, higher quality of care to our members. On this slide are key plans for the next five years of immediate actions that will stabilize the company, improve customer service, strengthen our balance sheet, and allow the market to value our stock appropriately, given the growth that Marpay is targeting. Once the immediate needs are addressed, we will be developing a world-class sales team to drive organic growth, and we expect to start acquiring more TPAs using the lessons learned from the Maestro acquisition and the standardization of our systems. We envision multiple acquisitions starting in 2025. Moreover, we'll be using our technical expertise to drive more efficiencies across all operations. We've done it before with Well9RX, and we're looking forward to doing it again with TomorrowPay, but this time better and faster. Steve?
spk02: All right, I'd like to wrap up with one key comment. We received a delisting notice from NASDAQ regarding our noncompliance with the company's market values to securities. We will appeal the delisting determination today, which would suspend the delisting process until the hearings panel make a final determination. We filed an 8K announcing that earlier this morning, and we want to make sure we addressed it on the call. Further details will be released as we get notification of when to expect that hearing. And we believe that our actions and protocols that we have in place and that Damian outlined will help us alleviate that issue. non-compliance before our hearing. I also want to thank everyone for participating in our investor webcast today. For additional further information, please feel free to contact me via email as shown on your screen, or please visit our investor relations website at ir.marpayhealth.com for all the latest information. A reminder that this webcast will be available for replay through December 6th. I want to thank everybody for joining us and looking forward to providing more updates as we continue to improve and grow. Thank you.
spk00: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.
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