Ann: Investor Webinar Presentation, page-9

YouTube Video Link:https://www.youtube.com/watch?v=xnHGxUeO160

AI Summary

Title: Echo IQ - US Commercialization Strategy andBusiness Update
Speaker: Dustin Haynes (CEO, Echo IQ)

Introduction (00:00 -02:00)

• Host: Sam Jacobs introduces the webinar, featuring CEO Dustin Haynes.
• Agenda: Update on Echo IQ’s US commercialization strategy, EchoSolve product, clinical pipeline, and business opportunities.
• Q&A: Moderated by Chief Commercial Officer Dion Strum.

Company Overview andMission (02:00 - 07:00)

• Dustin Haynes’ Background:
  • Joined as CEO in January.
  • 25 years of experience in pharmaceuticals, biotech, and medical devices.
  • Expertise in US commercialization.
• Mission of Echo IQ:
  • AI-driven diagnostic tool for detecting aortic stenosis and heart conditions.
  • Focus on early, accurate diagnosis to reduce cardiovascular mortality.

Technology andCompetitive Edge (07:00 - 12:00)

• EchoSolve: AI-based decision support tool integrating with hospital systems.
• How It Works:
  • Extracts echocardiogram data (not images).
  • Uses AI to detect structural heart diseases in real-time (3 seconds).
  • No reliance on age, gender, or race (removes bias).
• Comparison to Competitors:
  • Competitors rely on image-based AI, leading to slower processing times.
  • Echo IQ processes raw measurement data for greater accuracy and efficiency.

Market Opportunity(12:00 - 18:00)

• Cardiovascular Disease: Leading cause of death globally, high healthcare costs.
• Market Size:
  • Aortic stenosis (AS) market: $10B in the US, growing 10% annually.
  • Heart failure market: $70B, with 50% of cases underdiagnosed.
  • 6 million echocardiograms yearly for AS, 10 million for heart failure.
• Revenue Potential:
  • Insurance reimbursement for EchoSolve expected to be $100-$150 per test.
  • Future expansion into heart failure diagnosis (reimbursement of $200-$300 per test).

US Expansion &Business Progress (18:00 - 25:00)

• Commercialization Strategy:
  • Beth Israel hospital fully integrated with Echo IQ.
  • 5+ hospitals & clinics onboarded, 60+ in active discussions.
  • Contract sales team deployed across 75% of the US market.
• Key Partnerships: Partnering with imaging companies and hospital software providers for faster adoption.
• Regulatory & Reimbursement Updates:
  • Applying for Category 3 CMS reimbursement code (meeting scheduled in May 2024).
  • Current temporary code (93766) allows reimbursement of $148 per test.
• IP Protection: Patents filed globally (US, Canada, Europe, Asia, Middle East).
• Investor Relations:
  • Increasing interest from US investors.
  • Planning an OTCQB listing for US trading access.

Key BusinessDevelopments & Industry Engagement

• Upcoming Conferences:
  • Presenting at investor and cardiology conferences in New York and California.
  • Late-breaking science presentation at the American Cardiology Conference in Chicago (by Prof. David Playford).
  • Findings will highlight Echo IQ’s AI efficiency in clinical settings.
• Pilot Studies & Clinical Integration:
  • Australia Pilot Study: Testing AI in real-world clinics, showing improved patient identification rates.
  • Beth Israel Health Outcomes Study (Harvard-affiliated):
    • Aim: Demonstrate cost savings & efficiency of AI-based diagnostics.
    • Essential for securing insurance reimbursement.
    • Results expected later in 2024.

Reimbursement Strategy& Business Model

• US Insurance & Medicare Codes:
  • Current reimbursement: Temporary "miscellaneous" code (93766) at $148 per test.
  • Commercial Insurance (Medicare Advantage): Some insurers pay ~$223 per test.
  • Goal: Upgrade to Category 3 CMS code (meeting scheduled for mid-2024).
  • Ultimate Aim: Achieve Category 1 code (full reimbursement, ~$250 per test).
• Revenue Model:
  • Hospitals subscribe to EchoSolve AI.
  • Hybrid model: Combines subscription fees + insurance reimbursement.
  • As reimbursement improves, Echo IQ’s revenue scales up.

Hospital Integrations& US Expansion Plan

• Current Progress:
  • 5+ hospitals actively integrating EchoSolve AI.
  • 60+ hospitals in discussions, with hundreds more targeted.
  • Aim to convert free trials into long-term subscriptions.
• Timeline & Growth Strategy:
  • First half of 2024: Expanding hospital trials.
  • Second half of 2024: Expected to see first revenue streams.
  • 2025 & Beyond: Heart failure detection rollout (AI model already built, pending FDA approval).

Investor Updates &OTCQB Listing

• US Stock Market Expansion:
  • OTCQB listing underway (expected by mid-2024).
  • Enables US investors to buy shares directly.
  • Echo IQ meeting with venture capital, family offices, and institutional investors.
• International Expansion:
  • Europe: Seeking distributor partnerships.
  • Middle East: Interest from Saudi Arabia & UAE in AI-based diagnostics.

Competitive Advantage& Financials

• Competitive Edge:
  • Patent protection: Strong global IP portfolio.
  • AI outperforms traditional diagnosis.
  • First-mover advantage in AI-driven heart failure detection.
• Financials & Capital Planning:
  • ~$5 million in cash reserves.
  • Monthly burn rate: $400,000+ per month.
  • No immediate need for capital raise, but will evaluate strategic investments.
  • Focused on fiscally responsible spending (downsizing office, investing in key areas).

CEO’s Reflections onFirst 60 Days

• Dustin Haynes (CEO) says the role has "exceeded expectations."
• Team is "running ahead" of him, showing strong focus and execution.
• Small but highly efficient team delivering results.

Final Takeaways

✅ AI-powered real-time diagnosis of heart disease. ✅Faster & more accurate than traditional echocardiogram reading. ✅Massive market opportunity ($80B+ combined). ✅ US expansion wellunderway, strong hospital interest. ✅ CMS reimbursementapproval pending (critical milestone for revenue growth). ✅OTCQB listing in progress to attract US investors.

Echo IQ is well-positioned for rapid growth,leveraging AI, strategic partnerships, and market expansion opportunities.