Ann: Quarterly Activity Report and Appendix 4C for Q3 FY2025, page-40

Certainly from a cashflow perspective, and what was said at the time, Imbio has not delivered.

However, and it has been posted about many times before, 4DX had to buy Imbio as they were missing part of an offering (the AI bit and the other bit), that other companies provided.

Companies like Imbio don't grow on trees, it's not like walking into Woolies and buying apples. It takes years to find, and the acquisition target must be at the right stage of their cycle, and willing to be bought. Imbio was probably the only option they had at the time to complete their offering and fend off competition in the long-run.

Having a portfolio of products does make it easier to open doors and sell one or more of those products. It just looks more impressive.

However, 4DX probably miscalculated how much 'cross-selling' they could do to their newly purchased Imbio customer base. Imbio customers buying 4DX services, and vice versa. This mistake is often made during acquisitions and cross-selling is harder than people think.

The other thing is that 4DX is building a business for an exit itself - it will be sold in the future. When this is your plan, you must build and acquire based on the value those things would add to your business if it was bought by someone else, and how appealing it would be for a sale, as well as near-term cashflow.

The Imbio acquisition, as well as the development of the XV Scanner, were both, probably, in-part strategic moves by the company for a future exit, even though they were (unfairly) sold to investors as cash-generating.

Dr Mogel even alluded to this on a webinar with The Imagine Wire one time when he mentioned the XV Scanner roll-out would be for 'someone else who produces' hardware, or words to that effect. (I wonder who that would be?)

Yes in the short-term, given we need cash, Imbio seems like a bad move, but you have to take these opportunities when they arise, as there are no shops selling AI lung imaging companies to buy whenever you want.

It shouldn't have been sold to us investors as cash-generating. However long-term I think it will be seen as a phenomenal move, once these current cashflow pains are out the way.