Ann: Quarterly Activity Report and Appendix 4C for Q3 FY2025, page-10

The Good (What They Nailed)

• Revenue growth:
  Operating revenue up 103% year-on-year is impressive — no need to sugar-coat that. It shows the technology is gaining traction after years of groundwork. Also, gross margins of 91.4%? That's excellent — most SaaS companies would be jealous.

• Commercial wins:
  Renewals with Cleveland Clinic, new contracts with Qscan and Lake Imaging, and a strengthening relationship with Philips are all strong green flags. Having Philips’ CEO mention them in front of Congress is the kind of free PR money literally can’t buy.

• Cost control efforts:
  They’ve finally hit the brakes on spending (cutting $6.5m/year), and trimmed headcount down from 142 to 117 FTEs. It sounds like they stopped playing “burn cash like a tech startup” and are finally acting like a listed company.

• Cash on hand:
  $16.8m is decent — they're not at "pants around ankles" level, but they aren't lounging on a pile of money either. Their cash runway is about 1.5 quarters, which is tight but not immediately catastrophic.

The Bad (Where It’s a Bit Hairy)

• Still burning cash — badly:
  Despite bragging about wins, they burnt $11.2m in the quarter. Even with cost reductions, you can’t call that “business as usual.” Without the $13.9m capital raise (Placement + SPP), they would have been in trouble. Big promises to fix this next quarter — but we'll believe it when we see it.

• Philips deal = Potential, not revenue yet:
  Training 200 Philips staff is cute, but unless those people are closing deals (and the report carefully says contracts are "imminent", not done), it’s still vapourware. They need to turn the Philips hype into cold, hard cash fast.

• FDA submission delay:
  CT:VQ™ is still “nearing submission.” It's a classic biotech move to dangle a regulatory filing “just around the corner.” Until it's filed and approved, it's all potential, no outcome. Investors hate moving goalposts.

• Canadian opportunity is overstated:
  The section hyping Canada was over the top. Yes, Canada spends more per capita on healthcare than Australia, but it’s a bureaucratic minefield with painfully slow tech adoption in healthcare. Just being approved there doesn’t mean much yet.

• Shareholder dilution:
  The Placement and SPP were essential — but remember: issuing more shares = more slices from the same pie. If they don’t start ramping revenue quickly, they'll have to tap the market again, and shareholders will get even more diluted.

The Ugly (The Bit No One Talks About)

• The “disconnect” comment at the end:
  The CEO says:

  “There has never been a bigger disconnect between operational success and the share price.”
  Translation? The market doesn't believe them yet.
  You can cry about being undervalued all you like — but if investors are still selling after 103% revenue growth and a Philips partnership, maybe it’s because they see a deeper risk you aren’t addressing (like profitability, cash burn, or execution delays).

• Buzzword overdose:
  Phrases like “revolutionising lung diagnostics,”“disrupting a billion dollar segment,” and “owning the lung market” are borderline cringe if you aren’t actually profitable yet. Investors get turned off by too much chest-beating without proof.

Overall Verdict:

✅ Momentum is improving.
❌ Execution risk remains massive.
⏳ You are betting they can commercialise very quickly — otherwise, it’s another capital raise in late 2025.

If you believe in 4DX, you're betting on two things:

• Philips channels start delivering sales fast.

• FDA approval for CT:VQ™ is achieved without drama.

If either one misses, expect a lot more pain before the "disconnect" closes.