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Think Research Reports Record Q1 2022 Revenue with Continued Growth in the Software and Data Solutions Segment

  • Total revenue increased 142% over the same period in 2021
  • Software and data revenue in Q1 2022 increased by 41% over Q4 2021 reflecting recent major contract wins
  • Financial flexibility significantly enhanced post quarter-end as Think closed an initial draw of $10 million under a convertible debt facility of up to $25 million, and signed a $4.1 million software and data agreement with a global pharmaceutical company

TORONTO, ONMay 30, 2022 – Think Research Corporation (TSX.V:THNK) (OTCQB: THKKF) (“Think” or the “Company”), a healthcare technology company focused on transforming healthcare through knowledge-based digital health software solutions, today reported financial results for the first quarter ending March 31, 2022. Additional information concerning the Company, including our unaudited consolidated interim financial statements and related Management’s Discussion and Analysis (“MD&A”) can be found under the Company’s profile on SEDAR at and on our website. With over 13,000 enterprise healthcare facilities under license, Think’s solutions enable more than 300,000 doctors, nurses and pharmacist users to leverage our essential data service to help ensure everyone gets the best possible health care.

“We are very pleased to report record revenue for the first quarter of 2022, which we achieved despite facing some program setbacks in clinical research and clinical services caused by the Omicron COVID-19 outbreak in January,” said Sachin Aggarwal, Think’s CEO. “Our software and data solutions segment served as a solid offset to these unforeseen events and helped to augment our overall performance until the affected revenue streams recovered in the latter part of the quarter. Think’s results in the first quarter of 2022 prove that our diversified revenue streams afford us resilience and greater sustainability, and as a result, we believe the Company is on-track to meet our internal growth and profitability targets.”

Key Financial & Operating Highlights: 

  • Record revenue of $20.2M increased by 142% or $11.8 million compared to $8.4 million generated in Q1 2021. 
  • Operating cash flow increased by $10.9 million to $3.1 million in Q1 of 2022 compared to cash used in operating activities of $7.8 million in Q1 of 2021 due primarily to improved cash collections and other operational improvements.
  • Sequentially, revenue grew by 6% or $1.1 million compared to $19.1 million in Q4 2021. Due to major contract deployments, the software and data segment grew by $2.5 million or 41% compared to Q4 2021 and contributed $8.5 million to revenue in the quarter. This revenue growth offset a $1.4 million decline in revenue across the Company’s other segments which arose due primarily to delays in clinical research and clinical service operations associated with the Omicron outbreak. 
  • Gross profit in the first quarter of 2022 increased by 71% to $9.1 million compared to $5.3 million recorded in Q1 of the previous year, while gross margin was 45.1% compared to 63.8% in the prior year, reflecting a change in revenue mix due to acquisitions completed during 2021. Relative to Q4 2021, the gross margin percentage declined from 47.7% primarily due to the delays in the clinical operations segment related to Omicron disruptions.
  • Four acquisitions completed during 2021 contributed sizeable revenue streams and enabled Think to benefit from significant expense leverage. Think realized integration synergies totaling approximately $5.8 million on an annualized basis in 2021, with an additional $1.1 million realized in the first quarter of 2022. Total operating expenses including non-cash items increased by 51% or $4.8 million to $14.1 million compared to $9.3 million in the same quarter of 2021, while operating expenses excluding non-cash stock-based compensation and depreciation and amortization increased by 35% or $2.4 million to a total of $9.4 million compared to $7.0 million in the same period of 2021. 
  • The Company announced on February 23, 2022, that Think had processed a record 300,000 digital referrals in fiscal year 2021 through its continued partnership with the Ontario eServices Program and Cognisant MD. This growth in usage follows a June 10, 2021 announcement on increased access to the Company’s digital referral product for the Province of Ontario, resulting in an annual license fee increase of greater than $1.5 million.
  • Adjusted EBITDA improved to near the break-even mark in Q1 2022 with a loss of $0.3 million due to stronger revenue and realized synergies. Adjusted EBITDA Margin1 (as defined herein) loss improved to 1.4% compared to an Adjusted EBITDA Margin loss of 19.7% in Q1 2021. These improvements contribute to Think advancing its goal of generating positive Adjusted EBITDA in 2022. (See “Cautionary Note Regarding Non-IFRS Financial Measures” for further information.)
  • Organic growth and the increases in revenue and gross profit from recent acquisitions were not sufficient to offset an associated increase in non-cash amortization on acquired intangibles, other operating expenses, and finance costs, resulting in net loss increasing to $6.2 million in Q1 2022 compared to a net loss of $5.0 million in Q1 2021. 
  • The Company’s cash balance at March 31, 2022, was $6.1 million, down from a $6.3 million balance on December 31, 2021, with liquidity enhanced subsequent to the quarter end by way of the convertible debt facility. 

Highlights Subsequent to Quarter-End

  • As mentioned above, on April 22, 2022, Think secured a credit agreement with Beedie Investments Ltd. (“Beedie”) for a secured non-revolving convertible term loan of up to $25 million (the “Convertible Loan”), maturing on May 10, 2026 (the “Beedie Credit Agreement”). 
  • On May 10, 2022, Think closed an initial advance of $10 million under the Convertible Loan (the “Initial Advance”), following which the Company may from time to time borrow the remaining unadvanced portion of the Convertible Loan by one or more subsequent advances which may only be used by the Company to complete acquisitions of complementary businesses or as otherwise agreed to by Beedie. Beedie has the option to convert all or a portion of all advances into common shares of Think subject to the terms of the Beedie Credit Agreement.
  • On May 18, 2022, Think announced that its subsidiary, MDBriefcase Group Inc., has been contracted to deliver a content and learning management solution on behalf of a top 20 global pharmaceutical company. The contract has a total value of approximately $4.1 million, with revenue to be earned based on the achievement of various contractual milestones and the delivery of applicable programming.

Selected Financial Information1

In thousands of Canadian dollarsThree months ended March 31, 2022Three months ended March 31, 2021Increase (Decrease)
Gross Profit9,1145,34171%
Operating Expenses14,0879,30251%
Net Income(6,198)(5,043)23%
Adjusted EBITDA(290)(1,644)
Adjusted EBITDA Margin-1.4%-19.7%

1 Includes non-IFRS financial measures and non-IFRS ratios. See the “Cautionary Note Regarding Non-IFRS Financial Measures” section of this press release for the relevant definition of each non-IFRS financial measure and non-IFRS ratio and a reconciliation of each non-IFRS financial measure to net loss, the most directly comparable IFRS measure.


The Company plans to grow revenue with improving margins by becoming an increasingly essential provider of data solutions for healthcare practitioners everywhere, enabling them to deliver the best possible outcomes for all patients.

To fulfill this objective, the focus of Think’s operations is threefold:

  1. Add more users to current licenses by promoting adoption and usage. Currently, more than 300,000 clinicians, including doctors, nurses and pharmacists use Think’s solutions. As we add more users, our solutions become more essential to health systems and licensees.
  2. Increase revenue per user by increasing the number of content services and data solutions that a licensed user adopts and uses regularly.
  3. Monetize licensed users directly, over and above facilities licenses, through various methods such as Think’s direct-to-user clinical education offerings.

The objective of this operational focus, both in the short and long-term, is to generate organic revenue growth with improved margins, and to realize positive Adjusted EBITDA.

Conference Call Notification

Think will be holding a conference call via webcast on May 30, 2022, at 9:00 a.m. EST, hosted by CEO Sachin Aggarwal and interim CFO John Hayes, with a Q&A session to follow. To register for the conference call, please click here.

Conference call dial-in:

Toronto: 1-416-764-8659

North American Toll-Free: 1-888-664-6392

Conference ID: 11593959

About Think Research Corporation

Think Research Corporation is an industry leader in delivering knowledge-based digital health software solutions. The Company’s focused mission is to organize the world’s health knowledge so everyone gets the best care. Its evidence-based healthcare technology solutions support the clinical decision-making process and standardize care, to facilitate better health care outcomes. The Company gathers, develops, and delivers knowledge-based solutions globally to customers which typically include enterprise clients, hospitals, health regions, health care professionals, and / or governments. The Company has gathered a significant amount of data by building its repository of knowledge through its network and group of companies (including acquired companies).

Think licenses its solutions to over 13,000 facilities for over 300,000 primary care, acute care, and long-term care doctors, nurses and pharmacists that rely on the content and data provided by Think to support their practices.  Millions of patients and residents annually receive better care due to the essential data that Think produces, manages, and delivers.

In addition, the Company collects and manages pharmaceutical and clinical trial data via BioPharma Services Inc. (“BioPharma”).  BioPharma is a leading provider of bioequivalence and Phase 1 clinical research services to pharmaceutical companies globally. Think’s other services include a network of digital-first primary care clinics and medical clinics providing elective surgery.

Caution Regarding Forward-Looking Statements

This press release contains “forward-looking information” within the meaning of applicable securities laws. Forward-looking information may be identified by statements including words such as: “anticipate,” “intend,” “plan,” “budget,” “believe,” “project,” “estimate,” “expect,” “scheduled,” “forecast,” “strategy,” “future,” “likely,” “may,” “to be,” “could,”, “would,” “should,” “will” and similar references to future periods or the negative or comparable terminology, as well as terms usually used in the future and the conditional. Statements including forward-looking information may include, without limitation, statements regarding the Company’s Adjusted EBITDA in 2022, future license fee growth associated with the Company’s digital referral product, the availability of subsequent advances under the Convertible Loan, the use of the proceeds of the Convertible Loan, the expected value of contracts entered into with certain customers, and statements made in the “Outlook” section of this press release, including those regarding the Company’s growth strategy and its plans and tactics to achieve growth objectives.

Forward-looking information reflects management’s current beliefs and is based on assumptions that may prove to be incorrect, including but not limited to the Company’s business objectives, results of operations, financial results and trading activity in the Common Shares. The Company considers these assumptions to be reasonable in the circumstances. However, there can be no assurance that such assumptions will reflect the actual outcome of such items or factors. By its nature, forward-looking information involves known and unknown risks, uncertainties, changes in circumstances and other factors which may be outside of the Company’s control and which may cause the Company’s actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. The Company’s actual results may differ materially from those indicated in the forward-looking information. Important factors that could cause actual results to differ materially from those indicated in the forward-looking information include, among others, the risk factors described under the heading “Risk Factors” in the Company’s Management’s Discussion & Analysis for the year ended December 31, 2021, which is available on the Company’s profile at The Company has assumed that the risk factors referred to above will not cause such forward-looking statements and information to differ materially from actual results or events. The reader is cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking statements.

Other than as specifically required by applicable Canadian law, the Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, whether as a result of new information, future events or results, or otherwise.

This press release contains financial outlook information within the meaning of applicable securities laws. The financial outlook included in this press release includes, but is not limited to: the Company’s goal of generating positive Adjusted EBITDA in 2022, anticipated future license fee growth associated with the Company’s digital referral product, the expected revenues to be realized from MDBriefCase Group Inc.’s contract with its global pharmaceutical company client, and, the Company’s objective to grow revenue with improving margins and with positive Adjusted EBITDA. The financial outlook set out in this press release is subject to the same assumptions, risk factors, limitations and qualifications set out in these cautionary statements. The financial outlook contained in this press release was approved by management as of the date of the Company’s MD&A for the three months ended March 31, 2022, and was provided for the purpose of providing an outlook of the Company’s activities and results and may not be appropriate for other purposes. Management believes that the financial outlook has been prepared on a reasonable basis, reflecting reasonable assumptions, estimates and judgments; however, actual results of the Company’s operations may vary from those described herein. The Company disclaims any intention or obligation to update or revise any financial outlook contained in this press release, whether as a result of new information, future events or results or otherwise, unless required pursuant to applicable Canadian law. Readers are cautioned that the financial outlook contained in this press release should not be used for purposes other than for which it is disclosed herein.

Additional information about the risks and uncertainties of the Company’s business and material factors or assumptions on which information contained in forward‐looking statements is based is provided in its disclosure materials, including the Company’s MD&A for the three months ended March 31, 2022, and for the year ended December 31, 2021, which are available under the Company’s profile on SEDAR at

Cautionary Note Regarding Non-IFRS Financial Measures

This press release makes reference to certain non-GAAP financial measures and non-GAAP ratios. These measures and ratios are not recognized measures under International Financial Reporting Standards (“IFRS”), do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures and ratios are provided as additional information to complement those IFRS measures included in the Company’s financial statements by providing further understanding of the Company’s results of operations from management’s perspective. Non-IFRS measures and ratios have limitations as analytical tools and should not be considered in isolation nor as a substitute for analysis of the Company’s financial information reported under IFRS and should be read in conjunction with the consolidated financial statements for the periods indicated. The Company uses non-IFRS financial measures and ratios, including “EBITDA”, “Adjusted EBITDA” and “Adjusted EBITDA Margin” to provide investors with supplemental measures of its operating performance and to eliminate items that have less bearing on operating performance or operating conditions, highlighting trends in its core business that may not otherwise be apparent when relying solely on IFRS financial measures. Specifically, the Company believes that Adjusted EBITDA and Adjusted EBITDA Margin, when viewed with the Company’s results under IFRS and the accompanying reconciliations, provides useful information about the Company’s business by removing potential distortions that may arise from transactions that are not operational in nature. By eliminating potential differences in results of operations between periods caused by factors such as restructuring, impairment and other charges, the Company believes that Adjusted EBITDA and Adjusted EBITDA Margin can provide a useful additional basis for comparing the current performance of the underlying operations being evaluated. The Company’s agreements with its senior lender includes certain financial performance covenants which include EBITDA (as defined in the Company’s credit agreement with its senior lender) as a component of the covenant calculations. The Company is also required to maintain certain levels of EBITDA on a consolidated basis in accordance with the terms of its credit agreements. The Company believes that securities analysts, investors and other interested parties frequently use non-IFRS financial measures and ratios in the evaluation of issuers. The Company’s management also uses non-IFRS financial measures and ratios in order to facilitate operating performance comparisons from period to period.

Non-GAAP financial measures and non-GAAP ratios used in this press release include:

EBITDA” means net income (loss) before amortization and depreciation expenses, finance and interest costs, and provision for income taxes.

Adjusted EBITDA” adjusts EBITDA for non-cash stock-based compensation expense, gains or losses arising from redemption of securities issued by the Company, asset impairment charges, gains or losses from disposals of property and equipment, foreign exchange gains or losses, impairment charges on property and equipment, business acquisition costs, and restructuring charges.

Adjusted EBITDA Margin” means Adjusted EBITDA divided by revenue of the Company for the applicable period.

A reconciliation of EBITDA and Adjusted EBITDA to IFRS net income (loss) is presented below:

Three months ended March 31, 2022Three months ended March 31, 2021
Net loss                          (6,198)                      (5,043)
Depreciation and amortization                             3,636                           975 
Finance costs                            1,076                           271 
Income tax expense (recovery)                            (913)                              — 
EBITDA                          (2,399)                      (3,797)
Acquisition, restructuring and other                            1,062                           811 
Stock-based compensation                            1,047                         1,342 
Adjusted EBITDA                            (290)                      (1,644)

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For more information:

For further information: Mark Sakamoto, Executive Vice President, Think Research, 416.388.7119,

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