SEB is a technology company with two divisions, the Benefits Division and the Technology Division, providing business processes software, solutions and services to corporate and government clients with specialty practices focused on managing group benefit solutions and health claims processing environments. The core expertise of the
SEB's Benefits Practice is focused on two primary target markets in
SEB's business growth strategy for developing the benefits business has the following components:
-- Maintaining the leading technology platform for managing group benefit solutions and health claims processing environments. This includes developing unique benefit solutions made possible by the technology platform. -- Acquiring and making investments in existing benefit administration businesses and technology companies serving the corporate and government markets with the objective of expanding SEB's health benefit footprint across
Canada. -- Transitioning to the SEB technology environment the benefits-processing (administration, claims-adjudication and reporting) currently outsourced by the acquired businesses to third parties. -- Creating new unique benefits solutions made possible by the SEB technology platform.
The progress SEB has made in 2011 through the early part of fiscal 2014 has positioned the company to achieve strong growth and sustainable profitability.
SEB's Technology Platform Provides Competitive Advantage in Benefits Management
SEB has spent over
SEB's technology platform manages the total business processing services for group benefit solutions and health claims processing on one fully-integrated technology environment. The SEB technology platform is open architecture, rules based and modular, and allows clients to utilize either a fully integrated solution or modules. SEB's real time "rules-based adjudication" environment is very unique, and when combined with the fully-integrated Administration, Payment Processing, Billing and Reporting modules, will provide very sophisticated and highly competitive solutions to the marketplace, both in
The health benefits division of SEB operates as a Third Party Administrator ("TPA") and technology provider supporting unique benefit solutions. The immediate opportunity for SEB is to increase the capture and retention of revenue by providing fully integrated services and solutions, currently being outsourced by most TPAs and Insurers to third parties.
SEB's Growth Strategy based on acquisitions and organic initiatives
Through acquisitions, SEB is acquiring the client relationships and vendor status to support a complementary organic growth model with both employers and government business opportunities. On the employee group benefit side, acquisitions and investments target TPAs, as well as broker and consultant organizations that provide solutions and services to employers. The objective is to secure the client relationships and transition many of the front and back-office business processes to the SEB technology environment over time; in effect, capturing revenue that was previously being outsourced. On the government side, SEB is targeting technology companies (primarily IT) that have established vendor relationships, security clearances and project references that are required to bid on government outsourcing contracts.
The growth plan for 2014 is acquisition-based, complemented by organic growth initiatives, with the objective of reaching consolidated profitability within the fiscal year 2014 and establishing a solid base of business and clients from which to launch stronger organic growth initiatives. From the beginning of Fiscal 2013 until now, SEB has closed 5 acquisitions and has announced a sixth that is expected to give the company a solid base of sustainable profitable revenue in excess of
Company developments during the quarter ending
March 14, 2014-SEB acquired Adeeva Nutritionals Canada Inc.and the wellness assets and business of Dr. James Meschino Healthand Wellness. -- March 18, 2014-SEB's wholly owned subsidiary, Somos Consulting Group Ltd., acquired APS - Antian Professional Services Inc.-- May, 2014-4,216,000 shares were issued upon exercise of share purchase warrants resulting in a cash inflow of $1,366,850. The exercise price of the warrants ranged from $0.30to $0.50. Insiders represented $1,000,000of the proceeds of the warrants exercised of which $560,500were proceeds from warrants executed at $0.50.
Company developments subsequent to
Financial Results for the quarter ended
For the quarter ending
Revenue for the quarter was
Cost of revenues
The Compensation portion of Cost of revenues primarily reflects the cost of contractors of Somos, Inforica and Antian.
Of the other operations costs, the largest was salaries and other compensation costs of
The major source of cash during the quarter was proceeds from the exercise of 4,216,000 warrants in the amount of
The unaudited condensed interim consolidated financial statements and related MD&A for the period ended
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