Page 1

+ Skylight Skylight Health Group Reports Record Second Quarter 2021 Financial Results Revenue Growth of 184 % Year over Year and 103 % Growth Compared to the Previous Quarter TORONTO , ON - August 16 , 2021 - Skylight Health Group Inc. ( NASDAQ : SLHG ; TSXV : SLHG ) ( " Skylight Health " or the " Company ” ) , a multi - state primary care management group in the United States , today announced its financial results for the second quarter ended June 30 , 2021 . Second Quarter Highlights : ● ● Revenue increased 184 % to $ 10.5 million , driven by acquisitions and organic growth , compared to $ 3.7 million for the same period last year , and up 103 % from $ 5.2 million for the first quarter of 2021 ; Organic growth from existing Primary Care clinics of approximately 13 % during the quarter ; Adjusted EBITDA was a loss of $ 1.5 million , driven by investments into people , technology and professional fees tied to acquisitions ; On April 5 , 2021 , the Company completed the acquisition of Rocky Mountain in Denver , CO and on June 23 , 2021 , Doctors Center in Denver , CO ; The Company acquired ACO Partners LLC , a new Accountable Care Organization ( " ACO ” ) that will begin participating in the Medicare Shared Savings Program offered by the Centers for Medicare and Medicaid Services ( " CMS " ) effective January 1 , 2022 ; Executed clinical trial contracts expected to generate revenue with strong margin potential ; Net loss from operations was $ 3.5 million , with approximately $ 0.9 million in one - time expenses tied to the Nasdaq up list , professional fees and the large Rocky Mountain acquisition and $ 1.1 million in non - cash items ; and Cash balance of $ 11.8 million as of June 30 , 2021 . " We are excited that we achieved our largest revenue quarter in the history of the Company . The second quarter continued the transformative growth that started in the first quarter of this year , " said Prad Sekar , CEO of Skylight Health . " We've identified two key growth areas that will remain a focus for the last half of the year and onwards : the growth through strategic acquisitions and the participation of value - based care under the Medicare Shared Savings program for our traditional Medicare patients beginning in 2022 . Revenue increased 184 % from the same period last year due to additional revenue being contributed by the clinics acquired during the fiscal year ended December 31 , 2020 , and the six months ended June 30 , 2021. The third quarter of 2021 will be the first period that includes a full three months of contribution by Rocky Mountain and Doctors Center Inc. The Company remains committed to a strong growth by acquisition model fueled by a strengthened balance sheet and robust pipeline . The Company also saw organic growth of approximately 13 % from prior acquisitions driven by improved revenue cycle management , provider access and patient flow post acquisition , compared to the first quarter of 2021 . The Company ended the quarter with the addition of new clinics , providers and patient panels . As of the end of the second quarter , the Company had approximately 88,000 lives vs 21,000 lives compared to the previous quarter . Eligible managed care lives represented over 15 % of that population . Traditional Medicare patients will begin participation in the CMS MSSP program starting January 2022. This platform will help validate Skylight's business model of shifting fee for service practices into value - based care arrangements . Net loss was driven by approximately $ 0.9 million in one - time expenses that were tied to the efforts to see through the Nasdaq up list . These included professional fees and other marketing efforts . Other one - time