Business Description
We develop and market healthcare industry solutions designed to improve delivery
of healthcare by means of mobile technology. Our software-as-a-service (“SaaS”)
platform and related services provide a catalog of vetted mobile app tools that
can be rapidly customized and implemented by healthcare organizations with goals
of addressing many key pain points of the industry, including preventable readmissions,
adherence to treatment plans, management of chronic conditions. Our flagship
product is the MobileSmith® Platform (the “Platform”). The Platform
is an innovative hosted set of tools that enables organizations to rapidly create,
deploy, and manage custom, native smartphone and tablet apps specific to healthcare
industry deliverable across iOS and Android mobile platforms without writing
a single line of code. Platform related services often include data integration,
training and integration of third party services. We also provide consulting
services, which include assistance with design and implementation of mobile
strategy, implementation of mobile marketing strategy and development of mobile
apps. Revenue from such services is included in the Professional Services and
Other Revenue line of our Statement of Operations.
In our business model the customers acquire access to the Platform through
user subscription agreements and are able to obtain control of mobile app production.
We often refer to our business model as platform-as-a-service ("PaaS"),
because we not only offer cloud software to create mobile apps, we offer infrastructure
to host the newly created mobile apps, back-office tools to manage those apps,
cloud tools to connect customers data or ability to incorporate existing third
party software code into customer apps. Out Platform is a truly comprehensive
offering and thus more accurately described by the PaaS model. In the industry
and this report terms SaaS and PaaS may be used interchangeably as common reference
to cloud computing model.
Our business model allows for creation and management of any desired number
of apps by our customers for a monthly subscription fee. The on-demand PaaS
model developed using multi-tenant architecture enables end users to visit a
website and use the PaaS applications, all via a web browser, with no installation,
no special information technology knowledge and no maintenance. The PaaS application
is transformed into a service that can be used anytime and anywhere by the end
user. Multi-tenant PaaS applications also permit us to add needed functionality
to our applications in one location for the benefit of all end users. This capability
allows us to provide upgrades universally.
We identified several trends in healthcare that are affecting use of mobile
technology in healthcare market:
' Increased pressures on healthcare industry to provide consumer-focused services,
as evidenced by entry of non-traditional healthcare players, like retail pharmacies
into offering primary healthcare nation wide;
' Tech-savvy Generation X and Millennial consumers are becoming primary healthcare
consumers and are demanding ease of use and transparency in healthcare and expect
mobile access to healthcare services, information and interaction with the healthcare
provider via mobile device;
' Increasing pressure from both government regulation and the traditional private
payers to reduce costs by compensating healthcare providers based on value and
outcome delivered.
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