IME Chart, page-199

This is my basic, naive, imprecise interpretation. If anyone who knows how to calculate these things properly can comment then I would be much obliged. As a fellow IME holder I would love to hear more from the experienced guys here.

I'm always keen to learn and I'm a little concerned about some of the smaller companies and how they will fare in the current climate. Especially since pretty much all hospitals over the next at least 6 months will be focusing on almost nothing except COVID-19. There are reports of almost any type of medical specialist being made "front line ready" in western countries. This makes me concerned that even radiology will be distracted and IME will have trouble converting sales over the next 12 months.

Rough calculations based on 4E preliminary report 2019

• 2019 EOY EBIT of negative $4,623,965.
• Makes an average cash burn rate in 2019 of ~$385,330 per month (EBIT / 12)
• Cash in the bank at end of 2019 was $7.1 million
• $7.1mill / average cash burn rate = 18.4 months cash runway (from start of 2020)
• Given we're almost in April, that's ~15 months of cash runway from now

Assumptions

• No big capital outlays in the next 15 months.
• Revenue stays the same (hopefully it will increase of course we have the COVID factor)

Points of interest
The item in the report noted as "radiology services expenses". This is the single biggest increase in cost to the company from 2019. It went from half a million in 2018 to more than 3 million a year in 2019. It sounds like a great R&D opportunity to teach the AI how to work and get it into the field, but it's also very expensive. Does anyone know whether the intention is to keep this going long term, or is it a temporary cost incurred over a short term partnership until the AI has learned enough to continue without further investment?

This item is stated as a strategic initiative where "Radiology Services Expenses for the year were $3.1m (2018: $0.5m). The company has three contracts in which it provides Radiology services, i.e. radiological interpretation as part of the whole contract, the largest of which is the recent Colsubsidio contract. IMEXHS has entered into a limited number of these contracts due to the strategic benefit it derives in developing its Artificial Intelligence capabilities. In addition to the increase in our image library for AI mentioned earlier, by using HIRUKO in the real world, IMEXHS has the opportunity".

Any thoughts would be appreciated.