What I perceived as some of the key takeout's from the annual report impacting the next couple of quarters. Very bulish about the medium term !
1) Mobvoi launch this quarter ( Q2, FY22 )
Mobvoi Product Launch Update
In September 2020, CardieX announced a commercial partnership with Mobvoi for a new health smartwatch that incorporates a suite of ATCOR’s biometric algorithms and AI powered health analytics. Mobvoi, backed by Google, is one of China’s most innovative AI, wearable and tech companies. The commercial partnership agreement for the development of the smartwatch will feature ATCOR’s patented SphygmoCor® technology and include our new sensor parameters (ATCOR’s world-first PPG sensor algorithm).
In anticipation of the smartwatch launch in Q2FY22, both companies have been developing a PR and launch marketing plan for the device with our new digital, brand and marketing agency as well as commencing discussions with multiple tech-exhibitions and upcoming conferences to showcase the device at launch in order to achieve maximum impact. No FDA clearance is required for the Mobvoi health smartwatch as it is not being marketed as a medical device.
2) Our SAAS platform, CONNEQT Digital Health update
CONNEQT’s upcoming digital platform consists of several connected devices and digital solutions for remote patient monitoring and consumer health. Together, these digital health assets provide clinicians and consumers with a proprietary suite of health tools unique to our FDA-cleared SphygmoCor® technology.
CONNEQT has two digital platforms and solutions in fast-track development which align with CONNEQT’s new product roadmap including:
i) The CONNEQT app – a consumer companion app for our “Pulse” device and CONNEQT Band, which incorporates health coaching, remote patient monitoring, and our patented heart-health parameters. The CONNEQT app will have the ability to remotely share your health readings with your physician and have both a free and subscription component.
ii) The CONNEQT Physician Portal – our physician portal and companion SaaS solution that, paired with the “Pulse”, provides physicians with the ability to directly monitor and care for patients remotely – and directly integrates our devices within the physicians billing and patient management systems. The physician portal will be a subscription SaaS solution.
3) We have a lot riding on the option conversion. Hoping for Pulse FDA submission news or Mobvoi launch to drop before the conversion date, or else another CR is looming
During the financial year shareholders continued to support the Company with both the August 2020 $2.5m capital raising and the December 2020 SPP, which was oversubscribed by 230%, raising an additional $3.2m. At year end we had a satisfactory level of cash reserves and, following positive discussions with the Company’s largest option holders, we are confident that the upcoming November 2021 options will be strongly supported as the exercise date draws closer. In addition, all directors have advised that they will be exercising their options entitlements, to the fullest extent possible, which includes CardieX’s largest share and option holder C2 Ventures Pty Limited, (jointly owned by CEO Craig Cooper and myself). On the basis of a strong option take-up, CardieX is well capitalised for its upcoming product launches.
At 30 June 2021, the Company had a cash balance of AU$3.67 million. CardieX’s listed options (ASX:CDXO - $0.05 exercise price, November 2021 expiry) have the potential to raise AU $6.29 million if fully exercised. Unlisted options if fully exercised would raise a further AU$1.87 million on the same terms. Together the listed and unlisted options have the potential to raise a total of AU $8.16 million if fully exercised.
4) CONNEQT Pulse is looking good, but a warning on possible delay in FDA process
The “Pulse” device, which now falls under the CONNEQT product offering, is a new home-based heart health vital signs monitoring system that uses ATCOR’s FDA-cleared SphygmoCor® technology. “Pulse” will allow cloud-connected remote patient monitoring of a patient’s cardiovascular diagnostics including our patented SphygmoCor® health parameters – a process that was previously only available through specialist clinicians.
The “Pulse” device will be the first new medical device for ATCOR since 2012 and significantly expands the commercial market opportunity for CardieX into the multi-billion dollar remote patient monitoring, telehealth and digital health markets.
Importantly, although all our product development is moving rapidly, and all major commercial partnerships are now in place to facilitate product development and launch, ultimately, all commercial launch timeframes are subject to FDA clearance which is out of the Company’s control and driven primarily by the FDA backlog at the relevant time.
5) Craig has 16 Million reasons to get the VWAP up significantly in October/November
Number of performance rights Will vest if 30 Day VWAP exceeds: Expiry Date of Performance Milestone 8,000,000 $0.08 30/11/2021 8,000,000 $0.12 30/11/2021
CDX Price at posting:
6.0¢ Sentiment: Buy Disclosure: Held
