Ann: Half Year Accounts 31 December 2024, page-2

AI Summary of Echo IQ Limited's Half-Year FinancialReport (31 December 2024)

Company Overview

• Entity Name: Echo IQ Limited (ASX: EIQ)
• ABN: 48 142 901 353
• Reporting Period: Half-year ended 31 December 2024
• Principal Activity: Development of AI-based cardiovascular diagnostic solutions

Financial Performance

• Revenue: Increased 533.8% to $101,409 (previous period: $16,000)
• Loss After Tax: Increased 125.4% to $6.21 million (previous period: $2.76 million)
• Net Tangible Assets per Security: Increased from 0.16 cents to 0.86 cents
• Cash and Cash Equivalents:$5.35 million (up from $2.12 million)
• Capital Raised:$7.1 million through share issuance

Key Developments

1. FDA Clearance for EchoSolv-AS

• EchoSolv-AS, the company’s AI tool for detecting severe Aortic Stenosis (AS), received FDA clearance in October 2024.
• Deployment began at Beth Israel Deaconess Medical Center (BIDMC), a Harvard-affiliated hospital.
• The company identified a Miscellaneous Code (93799) for reimbursement, estimated between US$100-$150 per use.

Commercialisation Strategy

• Integration partnership signed with ScImage Inc., a US-based leader in imaging management.
• EchoSolv-AS integrated into PICOM365 Cloud, used by 2,000+ US healthcare sites.
• Application for a Category III CPT code expected to further enhance reimbursement.

Expansion into Heart Failure Diagnostics

• EchoSolv-HF (Heart Failure AI tool) achieved 86-97% detection accuracy in clinical studies.
• Pre-submission meeting requested with FDA for validation trial.
• Heart failure market estimated at US$70 billion annually.

Leadership Changes

• Dustin Haines appointed as CEO (January 2025), bringing 25+ years of experience in US healthcare.
• Ken Nelson (US-based medtech executive) joined the board, strengthening US presence.

Financial Position & Market Outlook

• No dividends declared.
• $1.26 million received under the R&D Tax Incentive Scheme.
• The company remains focused on scaling AI solutions in US healthcare markets.

Conclusion

Echo IQ made significant progress in commercialising its AI-driven cardiovascular solutions, particularly with FDA approval and UShospital partnerships. However, despite strong revenue growth, the company continues to operate at a substantial loss, highlighting the costs associated with its aggressive expansion and R&D efforts.