4DMedical : Amended Quarterly Activity Report & Appendix 4C - Q4 FY2022

ASX announcement

ASX:4DX

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Quarterly Activity Report and Appendix 4C for Q4 FY2022

26 July 2022

Highlights

• 4DMedical secures a national contract with I-MED, Australia's largest diagnostic imaging network.
• Substantial progress in the I-MED rollout with the growth from four to seven sites.
• 4DMedical progresses its clinical pilot at Providence St. Joseph Hospital in Orange, California with first scans successfully delivered.
• Findings from the COPD clinical trial undertaken at Johns Hopkins were presented at ATS and concluded 4DMedical's XV Technology™ showed significant promise as a tool to phenotype or classify disease.
• 4DMedical makes two changes to its senior executive team with the appointment of Mr John Livingston as Senior Strategist and Executive Director, and Mr Simon Glover as Chief Financial Officer.
• 4DMedical is well funded to progress commercialisation opportunities with cash balances of $51.1 million and zero debt as of 30 June 2022.
• To watch a presentation on the June quarter highlights by CEO Andreas Fouras,click here.

Melbourne, Australia, 26 July 2022: Respiratory imaging technology company 4DMedical Limited (ASX:4DX, "4DMedical", or the "Company") today announces its Quarterly Activity Report and Appendix 4C Cash Flow Report for the quarter ended 30 June 2022.

4DMedical expands I-MED relationship with national contract

On 28 June 2022, 4DMedical announced that it had signed a three-year national contract with I-MED Radiology Network (I-MED), Australia's largest outsourced provider of radiology, offering a range of diagnostic services to private and public hospitals through a network of 250 clinics spread across Australia.

The contract expands and formalises an existing commercial arrangement that resulted in the successful rollout of the Company's XV Technology™ across I-MED clinics located in Berwick, Brisbane, Wagga Wagga, Launceston, and Albury. 4DMedical has now delivered XV Lung Ventilation Analysis Software (XV LVAS™) scans to patients at each of these sites with disease indications including long COVID, asthma, Chronic Obstructive Pulmonary Disease (COPD) and silicosis. Since the end of the reporting period, 4DMedical's XV Technology™ has been installed at Traralgon in Victoria and St. Andrews in South Australia.

As 4DMedical expands its offering through a rapidly developing product pipeline, the I-MED collaboration may provide streamlined adoption across Australia without requiring extensive pilot programs for these new products.

In an associated positive development, 4DMedical and I-MED have agreed to establish a Lung Centre of Excellence leveraging 4DMedical's lung imaging technology. Combined with the nationwide agreement now in place, this centre of excellence will enable world-class research and development activities to advance diagnostic imaging throughout Australia.

The future of lung health

Melbourne	Los Angeles
Level 7	21255 Burbank Boulevard	4DMedical Limited
700 Swanston St,	Suite 102, Woodland Hills,	ABN: 31 161 684 831
Carlton, VIC, 3053	CA, 91367	Email: [e-mail]	1
Tel: [phone]	Tel: [phone]	www.4DMedical.com

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Johns Hopkins clinical trial results presented at ATS

In mid-May investigators from Johns Hopkins and the University of Miami presented findings from their COPD study at the International Conference of the American Thoracic Society (ATS), which indicated that 4DMedical's XV LVAS™ technology showed significant promise as a tool to phenotype or classify COPD disease. This means that clinicians and investigators now have access to powerful imaging biomarkers that can regionally identify functional pathology. According to the World Health Organisation, COPD is the third leading cause of death worldwide.

Clinical trials remain a fundamental pillar of the Company's commercialisation strategy. In addition to driving awareness of 4DMedical's technologies amongst the medical community. The data from the clinical trials provide evidence for indication-specific use by clinicians. The Company currently has eight clinical trials running at hospitals in the US and Australia, including Cleveland Clinic, Duke, Vanderbilt, and The Alfred.

4DMedical makes key changes to its senior executive team

On 23 May, 4DMedical announced the appointment of experienced Company Director, John Livingston, as Senior Strategist and Executive Director. Mr Livingston has significant commercial experience in relation to business strategy, sales and systems in digital radiology, having previously been the Founder and CEO of Integral Diagnostics (ASX:IDX). He will be responsible for helping to drive sales revenue and will also assist by representing 4DMedical at industry events and in communications with key partners.

In another key hire made during the reporting period, 4DMedical appointed experienced ASX-listed MedTech CFO Simon Glover as its new Chief Financial Officer (CFO), effective 25 July. Mr Glover has significant corporate experience in relation to commercialisation, business strategy and a track record of driving revenue growth. He joins 4DMedical after three years serving SaaS MedTech MedAdvisor Limited (ASX: MDR) in the role of CFO.

Mr Glover is in a unique position to leverage his experience at MedAdvisor, which had global operations across the US, UK, Asia, and Australia. Prior to his time at MedAdvisor, Mr Glover held senior finance leadership roles for Coles Group (ASX:COL), Tabcorp Holdings Limited (ASX:TAH), Jetstar (ASX:QAN) and KPMG.

4DMedical well-funded to progress commercialisation strategy

4DMedical's cash balance as of 30 June 2022 was $51.1 million. Cash received from operations for the quarter includes receipts of $3.7 million in government grants and tax incentives and $0.2 million from customer receipts including both hardware and SaaS revenues.

Operating cash outflows were $12.0 million, mainly relating to payments for research and development, staff costs, administration, and general operating costs.

Based on the Company's net cash outlay expectations and allowing for an additional $15.0 million in MRFF funds yet to be received and the existing strong cash balance of $51.1 million, the Company has a significant cash runway of at least six quarters.

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Use of Funds (Listing Rule 4.7C.2)
	Prospectus
	dated 6 July		Period ended
	2020		30 June 2022
	Amount		Amount	% of
Uses of Funds	($'000)	%	($'000)	total
Marketing through clinical trials and trade	$15,230	30.5%	$9,083	59.6%
shows
Operating expenditure (inc. governance &	$13,035	26.1%	$19,344	148.4%
working capital)
Product R&D and platform development	$12,810	25.6%	$18,341	143.2%
US sales and distribution (inc. clinical	$3,075	6.1%	$8,642	281.0%
liaison & reimbursement)
Intellectual property and trademarks	$1,450	2.9%	$330	22.8%
Cost of the offer	$4,400	8.8%	$4,456	101.3%
Total from proceeds of issue of New Shares	$50,000		$60,196

The expenditure for the 24 months ended 30 June 2022, as set out in the table above, is broadly in accordance with the Use of Funds outlined in the Company's prospectus dated 6 July 2020. The largest deviation relates to the significant underspend in marketing through tradeshows, with every relevant tradeshow in Australia and the USA since the IPO cancelled due to COVID.

Related Party Transactions (Listing Rule 4.7C.3)

Payments to related parties of $0.3 million included in Item 6 of the attached Appendix 4C Cash Flow Report were for salaries and fees paid to executive and non-executive directors during the quarter ended 30 June 2022.

4DMedical Managing Director and Chief Executive Officer Dr Andreas Fouras said: "The commercialisation of our unique medical technology continued in earnest over the June 2022 quarter. A key highlight was the very significant contract we signed with I-MED, Australia's largest outsourced provider of radiology. It will see our XV Technology™ rolled out across the country. We anticipate that 4DMedical will generate material additional revenues on the back of this now wider I-MED agreement.

We were also thrilled to see the release of another package of study results indicating that 4DMedical's XV LVAS™ technology had significant promise as a tool to phenotype or classify COPD disease. Such trials remain a crucial component of our commercialisation strategy, and we are now eagerly awaiting the results of other studies being undertaken at US and Australian hospitals that are now in the wrap-up stage."

-ENDS-

Authorised by the 4DMedical Board of Directors.

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Contacts

Corporate	Media
Melanie Leydin	Julia Maguire
Company Secretary	[phone]
[e-mail]	[e-mail]

About 4DMedical

4DMedical Limited (ASX:4DX) is a global medical technology company that has created a step change in the capacity to accurately and quickly understand lung function of patients with respiratory diseases.

Through its flagship patented XV Technology™, 4DMedical enables physicians to understand regional airflow in the lungs and identify respiratory deficiencies earlier and with greater sensitivity as they breathe. This technology powers 4DMedical's FDA-cleared XV Lung Ventilation Analysis Software (XV LVAS™), which is the first and only modality that can dynamically quantify ventilation throughout the lungs. It additionally exposes the patient to lower levels of radiation relative to other diagnostic methods, a clear advantage when disease progression and therapeutic effectiveness need to be regularly monitored.

XV LVAS™ reports are prepared utilising 4DMedical's Software as a Service delivery model using existing hospital imaging equipment or the company's own revolutionary XV Scanner.

To learn more, please visit: www.4dmedical.com

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Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

Name of entity
4DMedical Limited
ABN	Quarter ended ("current quarter")
31 161 684 831	30 June 2022
Consolidated statement of cash flows	Current quarter	Year to date
	$A'000	(12 months)
		$A'000

1. Cash flows from operating activities

1.1	Receipts from customers	207	430
1.2	Payments for
	(a)	research and development	(4,976)	(16,813)
	(b)	product manufacturing and operating
		costs	(1)	(810)
	(c)	advertising and marketing	(934)	(2,538)
	(d)	leased assets	(308)	(923)
	(e)	staff costs	(3,019)	(10,681)
	(f)	administration and corporate costs	(2,901)	(6,543)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	15	93
1.5	Interest and other costs of finance paid	(80)	(179)
1.6	Income taxes paid	-	-
1.7	Government grants and tax incentives (GST
	inclusive)	3,735	12,643
1.8	Other (provide details if material)	8	51
1.9	Net used in operating activities	(8,254)	(25,270)

2. Cash flows from investing activities

2.1 Payments to acquire or for:

(a)	entities	-	-
(b)	businesses	-	-
(c) property, plant and equipment	(103)	(2,647)
(d)	investments	-	-
(e)	intellectual property	-	-
ASX Listing Rules Appendix 4C (17/07/20)		Page 1
+ See chapter 19 of the ASX Listing Rules for defined terms.