The Novita Healthcare Ltd (ASX: NHL) share price has been racing higher again on Wednesday.
In afternoon trade the early childhood technology company's shares are up a further 33% to 9.9 cents.
This latest gain means that its shares are now up a staggering 900% since this time last month.
Why is the Novita Healthcare share price rocketing higher?
Investors have been fighting to get hold of the company's shares over the last couple of weeks thanks to updates on its TALi Detect and TALi Train programs.
TALi Detect is a 20-min digital game-based screening tool available to all children to assess potential attention deficits.
TALi Train is a 25-session intensive digital program. It strengthens children's three core attention skills – Selective Attention, Sustained Attention and Executive Attention.
Both programs have recently received determinations that they can be delivered via the U.S. Reimbursement Code system.
Managing Director, Glenn Smith, explained why this is such a big positive.
He said: "The U.S. clinical market represents a massive opportunity for TALi and leveraging this CPT Code will assist us in securing relevant channel partners and customers in order to realise that opportunity. On average, in the U.S., every classroom of 30 students has up to 3 children with ADHD with 6.1m children diagnosed with ADHD currently in the U.S. As such, we are committed to ensuring that children have access to the TALi technology platform as we believe the technology can significantly improve their lives and reduce health care expenditure."
"TALi Train is currently the only regulatory cleared early childhood digital cognitive assessment and training program and with all development and compliance requirements achieved we are now set to execute on our go to market strategy to realise the potential of this world-leading technology," Mr Smith added.
What now for Novita Healthcare?
The company intends to provide further guidance on the deployment and billing schedule in the near future.
It is currently engaging with physicians, customers, and any potential partners in the United States. This is in preparation for a launch over the coming quarters.
This could mean it won't be too long before Novita Healthcare is generating revenues. Though, given its relatively slender cash balance, I suspect a capital raising may be on the horizon.
Novita isn't the only small cap on the rise today. Both Bubs Australia Ltd (ASX: BUB) and Pushpay Holdings Ltd (ASX: PPH) are pushing higher after positive announcements.
