KALLO INC. As used herein, the term "we," "our," "us," and the "Company" refers to
This section of the report includes a number of forward-looking statements that
reflect our current views with respect to future events and financial
performance. Forward-looking statements are often identified by words like:
believe, expect, estimate, anticipate, intend, project and similar expressions,
or words which, by their nature, refer to future events. You should not place
undue certainty on these forward-looking statements, which apply only as of the
date of this report. These forward-looking statements are subject to certain
risks and uncertainties that could cause actual results to differ materially
from historical results or our predictions. All funds are reflected in
Any reading of this Quarterly Report on Form 10-Q should also include a reading
of Item 1A, Risk Factors in our Annual Report on Form 10-K for the fiscal year
ending
We are a small company with limited financial and managerial resources and we are insolvent. There is substantial doubt that we can continue as an on-going business for the next twelve months unless we obtain additional capital to pay our bills and meet our operating expenses. This is because we have generated insignificant revenues from our operations during the last ten years. We have been able to remain in business as a result of investments, in debt or equity securities, by our officers and directors and by other unrelated parties. We expect to incur operating losses in the foreseeable future and our ability to continue as a going concern is dependent upon our ability to raise additional money through investments by others and achieve profitable operations. There is no assurance that we will be able to raise additional money or that additional money or that additional financing will be available to us on satisfactory terms or that we will be able to achieve profitable operations. The consolidated statements were prepared under the assumption that we will continue as a going concern, however, there can be no assurance that such financial support shall be ongoing or available on terms or conditions acceptable to the Company. This raises substantial doubt about our ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.
For the last ten fiscal years, starting
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In 2017 the
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We have entered into four major concession agreements with four key governmental
institutions in
Project Description Kallo SPV
1 Tamale Military Hospital project K-TMH Ghana Limited
2 Cape Coast Teaching Hospital project K-UCC Cape Coast Limited
3 Sunyani Teaching Hospital project K-UENR Sunyani Limited
4 Ho Teaching Hospital project K-UHAS Ho Limited These agreements are effective upon execution and the concession period will start from the date on which financial close is achieved with the Lenders and all conditions precedent are satisfied or waived. The financing has not closed yet and there is no guarantee that financial close will be achieved.
The Global need for standardized healthcare service delivery to all geographies and to all people is the fundamental business driver for the innovation of the Kallo Integrated Delivery System - "KIDS".
This unique and comprehensive concept was developed based on first hand discovery and a detailed study of ground realities and causal analysis over 15 years. The business issues in the current healthcare systems are addressed by intricate orchestration of technologies both proprietary and off the shelf to create a standardized healthcare delivery model across the continuum of care.
A strategic market approach was defined for customers to take a well-informed decision and to work with Kallo on a national strategy for healthcare infrastructure and a standardized healthcare services delivery model across the country. This led to the development of a structured business development process and management for business success.
After many years of hard work in developing countries we now see a dynamic shift in the thought process within the developing countries to consider innovative solutions leveraging technology for strengthening and advancing their healthcare infrastructure and services delivery for all citizens alike.
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Plan of Operation
The following plan of operation contains forward-looking statements, which involve risks and uncertainties. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of certain factors, including those set forth elsewhere in this document. Because of the speculative nature of our operations and the nature of the African countries we are attempting to do business with, there is no assurance that any of the planned operations will occur.
To the extent that we are financially able and if circumstances allow, we plan to continue to develop components of Kallo Integrated Delivery System:
Kallo Integrated Delivery System (KIDS)
MobileCareTM - a mobile trailer that opens into a state of the art clinical setup in a vehicle equipped with the latest technology in healthcare. More than just a facility, MobileCare TM can instantly connect the onboard physician with specialists for on-demand consultation via satellite through its Telehealth system. This is truly a holistic approach to delivering healthcare to the remotely located. For many rural communities, the nearest hospital, doctor or nurse may be hundreds of kilometers away. In many cases, this gap can be bridged using Telehealth technology that allows patients, nurses and doctors to talk as if they were in the same room.
RuralCareTM - prefabricated modular healthcare units focused in rural areas where no roads infrastructure is available. They are equipped to provide primary healthcare including X-Ray, ultrasound, surgery, pharmacy and lab services. Ranging from 1,200 to 3,800 square feet, these clinics can be up and running in disaster zones or rural areas in as little as one week. Similar to the MobileCare TM product, RuralCare TM also utilizes satellite communications to access the Telehealth system.
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Our overall healthcare mission is to "reach the unreached". Based on our own internal assessments conducted by our officers and without the benefit of any independent third party evaluation, we believe that may be able to offer end-to-end solution that may include the following:
Global command center - located in the Kallo headquarters in
Regional command centers, Clinical and Administrative - located in the urban area hospitals and connected with satellite communications, these centers coordinate all aspects of the healthcare delivery solution with the Mobile clinics and Rural clinics including clinical services, Telehealth services, pharmacy and medical consumable coordination as well as escalations to the Global response center.
Emergency Medical Services - provides ground and air ambulance vehicles for emergency patient transport. We have now incorporated Medical Drone Services.
Based solely on our internal management assessments conducted without the benefit of any independent third-party review or evaluation, we believe that our end-to-end delivery solution is equipped with necessary medical equipment as per regional healthcare requirements. We also install our copyrighted software and third party software as required along with a five (5) year support agreement renewable after the five (5) year initial term that includes the medical equipment, software licenses, installation implementation and training. If we are successful then we anticipate that may, if circumstances are favorable, allow us to generate an ongoing revenue stream for service, maintenance, spare-parts, and consumables. However, we can not assure you that even if we are able to achieve these goals that we can do so at levels that may allow us to achieve and sustain positive cash flow and profitability. We have incurred significant and protracted losses and we have no record of achieving and sustaining positive cash flow and profitability and we can not be certain that we will achieve either or both of these goals at any time in the future.
Business Overview
The Global need for standardized healthcare service delivery to all geographies and to all people is the fundamental business driver for the innovation of the Kallo Integrated Delivery System - "KIDS".
This unique and comprehensive concept was developed based on first hand discovery and a detailed study of ground realities and causal analysis over 15 years. The business issues in the current healthcare systems are addressed by intricate orchestration of technologies both proprietary and off the shelf to create a standardized healthcare delivery model across the continuum of care.
A strategic market approach was defined for customers to take a well-informed decision and to work with Kallo on a national strategy for healthcare infrastructure and a standardized healthcare services delivery model across the country. This led to the development of a structured business development process and management for business success.
The business development model, unique to KIDS, included in-country stakeholder workshops and white-board sessions on the KIDS concept and its application in their context of healthcare infrastructure and healthcare services delivery model.
Kallo instituted the concept of conducting detailed Clinical, Engineering and Technology studies led by Kallo to establish detailed requirements for preparation of a customized proposal for the country and a phased roll out plan.
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In addition, Kallo has addressed the major issue of financing such large initiatives in under developed countries by developing a network of financial institutions and Banks across the globe focused on humanitarian and healthcare projects.
Go-To-Market Strategy
Our Sales Go-To-Market Strategy is segmented based on the varying needs of our customers in the following three categories:
1. Full solution with Kallo Integrated Delivery System (KIDS) - typically longer
sales cycle and includes the end to end solution of Mobile Clinics , Rural Poly
Clinics , Global and Regional response centers, Clinical and Administrative
command centers, telehealth support, Kallo University training, pharmacy and
medical consumable support and Emergency services with ground and air
ambulance vehicles. This solution is focused on the end-to-end healthcare
needs of developing countries.
2. Medical Tourism
3. COVID-19 Rapid Response Program
Kallo's Value Proposition
? Laying the foundational elements in building the primary care infrastructure
for an entire country
? Providing Technologies for current and future adoption of advancements in
clinical services such as Telemedicine, remote maintenance and management etc.
? Creating operational policies and procedures to set higher standards of care
? Provide Education and training to build resource capacity within the country
? KIDS provide a modular and flexible Point-of-Care facility to enable healthcare
services from cities to the most rural areas in a given country and helps
overcome inequalities in healthcare services across all geographies.
Kallo's Key Market Differentiators
Kallo differentiates itself in our market segment by offering the most comprehensive and holistic healthcare deliver solution available to meet the needs of developing countries and countries with rural and remote populations. Kallo has invested considerable time and energy studying and understanding the healthcare needs of our target market.
Unequivocal Differentiators
1. Care platforms (Point-of-care facilities -
Modular Hospitals) manufactured to North American and internationally accepted
standards
2. Programs, facilities and services set-up to proactively detect and treat
infectious diseases
3. On-going Tele-health service support, leveraging both local and international
expertise
4. On-going education, training, & certification programs offered through Kallo
University
5. On-going service & maintenance programs for all facilities and equipment
6. Leverages local skillsets and creates employment opportunities
Competitive Landscape
Healthcare landscape is the most complex industry at large. It has developed in each area of its function in an isolated fashion and hence today we have disparate functions, technologies and infrastructure. Globally healthcare industry leaders are working hard to bring a synchronized approach in patient encounter, diagnosis and treatment including preventive care. Kallo has leaped into the future with the KIDS concept and have successfully brought together technologies including global telemedicine, infrastructure and functional expertise leading the industry and have created the Kallo business ecosystem.
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Kallo Integrated Delivery System (KIDS) has been the key to our success in the under-developed, countries and will take a lead into developing and developed countries with the flexibility of deploying components of KIDS.
Need for additional capital
We have incurred significant and protracted operating losses since inception and
have an accumulated deficit and a working capital deficit at
We cannot guarantee we will be successful in our business operations. Our business is subject to risks inherent in the establishment of a business enterprise, including limited capital resources and possible cost overruns due to price increases in services and products.
To become profitable and competitive, we anticipate that we will have to sell our products and services in sufficient volumes and with margins that may allow us to achieve profitability. We cannot assure you or anyone that we will be successful in these efforts and that we will avoid any of the severe financial and nonfinancial consequences that commonly result when a corporation is insolvent.
There is no guaranty that we will obtain sufficient additional financing on a timely basis and on reasonable terms. If financing is not available on satisfactory terms, we may be unable to continue, develop, or expand our operations. Any equity financing will likely result in immediate and substantial dilution of existing stockholders.
Results of operations Revenues
We did not generate any revenues during the six months ended
Expenses
During the three months ended
The increase in our total expenses for the three months ended
During the six months ended
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The decrease in salaries and compensation of
The Company is operating with a minimal number of full time employees and office space until it can secure new contracts.
Net Loss
During the three months ended
During the six months ended
Liquidity and capital resources
As at
Cash used in operating activities amounted to
Cash provided by financing activities amounted to
There was no cash movement in investing activities during the current six months
period ended
As of
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