HC Innovations, Inc. announced that on July 24, 2009, Mr. Brett Cohen resigned from his position as the Executive Vice President of Operations of the company effective immediately.

HC Innovations, Inc. said in Form 10-Q/A filed with Securities and Exchange Commission (SEC), “The current financial position of the Company, including access to cash available through the revolving line of credit, will allow the Company to sustain its operations for the next twelve months. Based on our current financial resources, however, we will require additional working capital to fund our ongoing business and to implement our current business strategy, including acquisitions and further development of our proprietary software systems, beyond the next twelve months. The Company intends to do this through capital raising efforts. To this end, the Company’s management will work with the Board of Directors to evaluate our current capital raising efforts. At present, the Company is in discussion with several parties relative to a potential infusion of capital to the Company, either through the issuance of convertible debt or shares of our common or preferred stock. However, to date, no definitive agreement has been entered into by the Company and no assurance can be given that our efforts to obtain additional capital will be successful.” It added, “Although the Company is evaluating its capital raising opportunities, there can be no assurance that additional financing will be available, or if available, that such financing will be on favorable terms. Any such failure to secure additional financing could impair our ability to achieve our business strategy. If additional capital is not raised or if we are unable to improve our cash flow and liquidity position, we may not be able to continue our operations beyond the next twelve months.”

On July 15, 2009, HC Innovations Inc. announced that it entered into a Vendor Services Agreement with Touchstone Health HMO Inc. Under the terms of the Agreement, the Company will provide certain care management services for Touchstone plan members who are deemed to be medically complex.