Quarterly Activity Report and Appendix 4C
ASX:4DX
Inaugural clinical SaaS revenue as operations gain momentum
29 April 2022
Highlights
4DMedical deployed the world's first dedicated lung scanner, the XV Scanner, integrating the Company's proprietary XV Technology™ software with dedicated hardware
The XV Scanner is expected to accelerate uptake of the Company's core SaaS product and offer multiple pathways to drive the Company's commercialisation plans
4DMedical progressed its clinical pilot at Providence St. Joseph Hospital in California with first scans successfully delivered
Further expansion of the I-MED commercial rollout, with the radiology group's Brisbane, Wagga Wagga and Albury sites added during the quarter
Operating cash inflow of $9.0 million reported, including inaugural clinical SaaS revenue, and the second tranche payment under the MRFF grant
4DMedical's cash position remains strong, with cash balances of $60.0 million as at 31 March, leaving the Company well-funded to progress commercialisation opportunities
Melbourne, Australia, 29 April 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 31 March 2022.
4DMedical's XV Scanner now deployed at the Prince of Wales Hospital in Sydney
In March 2022, 4DMedical announced it had successfully developed and deployed the world's first and only dedicated lung scanner, the XV Scanner, to the Prince of Wales Hospital in Sydney. The XV Scanner integrates 4DMedical's proprietary XV Technology™ software with purpose-built hardware, providing doctors and patients with unprecedented and highly visual insight into respiratory function via automated scans.
The XV Scanner opens the way for accelerated uptake in the Company's core SaaS product by facilitating access to XV Technology™ for more patients, including children and the very unwell (who are unable to be scanned using conventional imaging equipment), while increasing throughput and reducing costs for healthcare providers.
The scanner was unveiled at the Sydney hospital, meeting the key milestones under the Australian Federal Government's Medical Research Future Fund (MRFF) Frontier Stage 2 initiative ahead of schedule. The development of the XV Scanner was funded through MRFF's $28.9m five-year grant awarded to 4DMedical subsidiary Australian Lung Health Initiative Pty Ltd. Please refer to the following link to view Federal Health Minister Greg Hunt discussing the XV Scanner.
First commercial revenue from XV LVAS™ software at I-MED clinics
4DMedical's XV LVAS™ software was successfully installed at I-MED Radiology Network (I-MED) clinics in Brisbane, Wagga Wagga and Albury during the quarter. The company received first payments for the delivery of XV LVAS™ scans at these initial I-MED clinics.
The Company continues to work towards installing its XV LVAS™ software in other selected locations across I-MED's nationwide network of clinics over coming months. I-MED is Australia's largest
The future of lung health
Melbourne Level 7
Los Angeles
700 Swanston St, Carlton, VIC, 3053 Tel: +61 (3) 9545 5940
21255 Burbank Boulevard Suite 102, Woodland Hills, CA, 91367
Tel: +1 (818) 403-8490
4DMedical Limited ABN: 31 161 684 831 Email:info@4DMedical.comwww.4DMedical.com
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outsourced provider of radiology, with more than 200 clinics nationwide, offering a range of diagnostic imaging services to private and public hospitals.
Imaging commences at Providence St. Joseph Hospital clinical pilot
Shortly after the end of the quarter, the Company announced the commencement of a key US-based clinical pilot, with first scans successfully occurring at Providence St. Joseph Hospital in Orange, California. Under this clinical pilot, 4DMedical's XV LVAS™ software is being commercially used to assist in screening for multiple respiratory conditions, including Chronic Obstructive Pulmonary Disease (COPD) and long-COVID.
St. Joseph Hospital is one of 52 hospitals within the Providence Health & Services network, the third largest not-for profit health system in the US.
These successful scans at St. Joseph Hospital build on previous and concurrent use of XV Technology™ in clinical trials undertaken at other US sites, including Johns Hopkins Medical Center, Cleveland Clinic, Vanderbilt University Medical Center, Duke University Hospital and the University of Miami.
In addition, 4DMedical continued to make progress towards other commercial pilots in the US during the quarter. The Company has a strong near-term commercialisation pipeline in the US market, particularly within the large and important Veterans Health Administration (VHA) healthcare system.
The VHA healthcare system represents the largest integrated healthcare system in the US, providing life-long care and services to eligible military veterans and their families. The US$250B p.a. VHA operates 1,255 healthcare facilities, including 170 medical centres and 1,074 outpatient clinics, offering a variety of care plans to over 9 million veterans enrolled in the VA healthcare program. As announced last year, 4DMedical has won the right to paid contracts in the VHA without the need for further reimbursement.
4DMedical's CEO presents to Goldman Sachs Healthcare Conference
During the quarter, CEO Andreas Fouras presented at the Goldman Sachs Healthcare IT Series. Please refer to the followinglink to view the investor presentation from the event.
4DMedical well-funded to progress commercialisation strategy
4DMedical's cash balance was $60.0 million as at 31 March 2022. Cash received from operations for the quarter included receipt of $8.9 million (including GST) of the MRFF grant and $0.1 million from customers including I-MED.
MRFF funding received to date total $14.4 million including GST, of which $8.9 million including GST was received during the quarter.
Operating cash outflows were $8.4 million, mostly 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 plus the existing strong cash balance of $60.0 million, the Company has a significant cash runway of at least seven quarters.
Use of Funds (Listing Rule 4.7C.2)
Uses of FundsProspectus dated 6 July 2020 Amount ($'000)
Period ended
%
31 March 2022 Amount ($'000)
% of total
Marketing through clinical trials and trade $15,230 30.5% shows
$7,085 46.5%
Operating expenditure (inc. governance & $13,035 26.1% working capital)
$17,212 132.0%
Product R&D and platform development $12,810 25.6%
$15,133 118.1%
US sales and distribution (inc. clinical $3,075 6.1% liaison & reimbursement)
$7,195 234.0%
Intellectual property and trademarks $1,450 2.9%
Cost of the offer $4,400 8.8%
$278 19.2% $4,456 101.3%
Total from proceeds of issue of New Shares
$50,000
$51,359
The expenditure for the 21-month period ended 31 March 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 US since the IPO through to the end of this reporting period cancelled due to COVID. This table includes expenditures funded by the MRFF grant.
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 was for salaries and fees paid to executive and non-executive directors during the quarter ended 31 March 2022.
-ENDS-
Authorised by the 4DMedical Board of Directors.
Contacts
Corporate | Media |
Melanie Leydin | Julia Maguire |
Company Secretary | + 61 (02) 8999 3699 |
companysecretary@4DMedical.com | julia@thecapitalnetwork.com.au |
About 4DMedical |
Based in Melbourne, Australia and Los Angeles, U.S., 4DMedical Limited was founded in 2012 and is listed on the Australian Securities Exchange (ASX:4DX).
4DMedical is a medical technology company focused on delivering the global gold standard in respiratory diagnostics for all lung disorders, including: coronavirus, asthma, chronic obstructive pulmonary disease (COPD), cystic fibrosis and cancer.
The unique and transformative XV TechnologyTM accurately and quickly scans lung function as the patient breathes, enabling early diagnosis and the monitoring of changes over time.
Our Software-as-a-Service (SaaS) delivered Ventilation Reports provide information and insights far beyond the capabilities of conventional modalities, showing subtle variations in lung function down to the finest details in specific regions of each lung, and with lower exposure to radiation than traditional methods.
Respiratory diagnostics is a US$31 billion per annum global industry. 4DMedical is disrupting this sector and is committed to providing better information to doctors and patients about lung function.
Better information means better decisions and better outcomes.
Learn more:https://4DMedical.com
Appendix 4C
Quarterly cash flow report for entities subject to Listing Rule 4.7B
Name of entity
4DMedical Limited
ABN
31 161 684 831
Quarter ended ("current quarter")
31 March 2022
ASX Listing Rules Appendix 4C (17/07/20)
1. | Cash flows from operating activities | ||
1.1 | Receipts from customers | 223 | |
74 | |||
1.2 | Payments for | ||
(3,782) | (11,837) | ||
(a) research and development | |||
(b) product manufacturing and operating | |||
costs | (591) | (809) | |
(c) advertising and marketing | (661) | (1,604) | |
(d) leased assets | (238) | (615) | |
(e) staff costs | (2,589) | (7,662) | |
(f) administration and corporate costs | (496) | (3,642) | |
1.3 | Dividends received (see note 3) | - | - |
1.4 | Interest received | 23 | 78 |
1.5 | Interest and other costs of finance paid | (61) | (99) |
1.6 | Income taxes paid | - | - |
1.7 | Government grants and tax incentives | 8,908 | 8,908 |
1.8 | Other (provide details if material) | 32 | 43 |
1.9 | Net cash from/(used in) operating | ||
activities | 619 | (17,016) | |
2. | Cash flows from investing activities | ||
2.1 | Payments to acquire or for: | ||
(a) entities | - | - | |
(b) businesses | - | - | |
(c) property, plant and equipment | (405) | (2,544) | |
(d) investments | - | - | |
(e) intellectual property | - | - | |
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+ See chapter 19 of the ASX Listing Rules for defined terms.
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4DMedical Ltd. published this content on 28 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 April 2022 02:01:04 UTC.