Takeaways from Webinar.Recap of 2023 (Craig)-NASDAQ failing...

Takeaways from Webinar.

Recap of 2023 (Craig)
-NASDAQ failing explanation was interesting. Essentially media and marketing silence combined with poor cash balance in quarterly report started a sequence of events that led to share price dropping. So much so that NASDAQ listing would see them in Microcap territory when the US investors they’d spoken with were limited to Small Caps.

Cap raise (Neil)
- 289m shares on issue, $0.08 share price.
- Post Cap raise, market cap of $23.1m including $11.75m cash
- Post C2 venture CFA, market cap of $29.1m including $17.75m cash
- Getting close to $10m in revenue forecast for full year (this includes Clinchain $6m+)
- 7 conditions for ASX delisting. ASX have full discretion, could add or waive conditions.

Strategic/Go to Market (Catherine)
- Pulse has been demoed in US and global (lesser)
- $50 per device per month sold as subscription, leased pack of five. Clinics don’t have to look after device, can swap out. As data comes in can enrich their decision making and reporting.
- Expect 85% margin.
- Targeting three big markets i.e Remote patient monitoring $200m+.
- 5% market share would see $100m+ recurring revenue (Heart failure 5% alone = $166m)

Questions:
- Certainty of cash required, they’ve run models, cash raise in excess of requirements.
- Greatest near term opportunity, bit of waffle, take away was focusing on current markets services, use data to drive expansion
- Production runs, small trial first of 100-200 to seed initial partnerships, then 3k run, 7k run, 10k run regular cadence. - FDA clearance for Band, up to FDA. New directors, 1 US and 1 Aus, will be announced after prospectus notice.

Personal thoughts (my opinion)
- With cash reserves and revenue of $4m (I disagree with Neil’s point on Clinichain being included hence not $10m), at market cap of $23.1m to $29.1m, feel CDX is undervalued.
- Despite imminent release, the potential and exposure to huge markets, not expecting early revenues from Pulse to be huge. Rather they’ll be modest, may just make profitability in early phases. The data gathering I think is key and will lead to where the money making is.
- Feel the initial $50 subscription price is extremely low, suspect this is intentional, get it into as many hands as possible, generate data and tailor service to become essential/embedded to everyday (like all good subscription models). Once stuck would expect them to raise prices.