Positive news - cash flow plus 3 new team members employed
Resonance Health Limited today released its 2nd quarter Cash Flow Report for the period ending 31 December 2015. Cash at 31 December 2015 was $2.405million. Image analysis services for the quarter were 22% higher than in the same quarter the previous year. This volume increase is the result of successful activities to grow routine clinical use of our services by referring clinicians and drive further demand for tests through our collaborative programs with pharmaceutical companies. Receipts from customers for the quarter were lower as a result of pre-payments received in prior quarters for services delivered in this quarter. A new large order was secured this quarter from a pharmaceutical collaborator with payment to be received next quarter. FerriScan® continues to be a significant focus in our marketing efforts as we identify new target markets to drive revenue and maintain the sustainability of the Company. New opportunities are being generated by applying the FerriScan technology for iron assessments in organs other than the liver. Targeted marketing has also been undertaken to develop strategically valuable HepaFat-Scan® opportunities and pharmaceutical marketing remains a high priority for HepaFat-Scan. During the quarter the Company:
Attended the Annual Liver Meeting organised by the American Association for the Study of Liver Diseases (AASLD) in San Francisco, USA focusing on promoting HepaFat-Scan to Key-Opinion-Leaders and pharmaceutical companies.
Attended the Annual Meeting of the American Society of Hematology (ASH) in Orlando, USA where we focused on promoting FerriScan, expanded on relationships with existing customers and generated valuable new leads.
Secured use of HepaFat-Scan in the high profile London Marathon Study to measure the impact of intense exercise on heart muscle in 120 participants. The addition of HepaFat Scan provides a valuable opportunity to examine any relationship between intense exercise and liver fat volume alongside cardiac function.
Research and development spend was in line with our planned budget of $138,000 and focused on the development of a non-invasive liver fibrosis measurement technology and utilisation of the FerriScan technology in new disease indications. During the quarter:
Chief Scientific Officer, Prof Tim St Pierre, presented the abstract on our prototype fibrosis measurement technology at the Annual Liver Meeting (AASLD).
The Company commenced its delivery of bone marrow iron assessments for a small pharmaceutical sponsored study.
The Company reached an agreement with CSIRO to continue collaborations in 2016, focusing on development of a non-invasive liver fibrosis measurement.
Recruitment continued for the Australian Liver Surgery HepaFat-Scan study and the paediatric HepaFat-Scan validation study with Children’s Healthcare of Atlanta.
Research into the measurement of liver fibrosis based on the FerriScan technology showed promising results.
Further achievements for the quarter included:
The Company celebrated the significant milestone of delivering over 30,000 FerriScans to patients worldwide.
A record monthly volume of analyses was achieved in December 2015.
Three new team members were recruited to assist in our growing business areas; an Account Manager in Marketing and Sales (Ms Julie Weir), and a Clinical Manager (Dr Sherif Boulos) and a Scientific Research Officer (Associate Prof. Michael House) in Research and Development.
An investigation commenced into an opportunity for a HepaFat-Scan study in diabetes patients.
Potential collaborations are being explored for additional new HepaFat-Scan studies in order to further demonstrate its potential.
Continued engagement with pharmaceutical companies to develop future collaborations.
In the next quarter and coming 12 months the focus will continue to be on growth and development. The Company is looking to recruit an additional resource to further strengthen the Marketing field team and target specific growth areas. It is anticipated the Company will further expand its R&D team as we continue to develop our suite of products.
RHT Price at posting:
2.4¢ Sentiment: Buy Disclosure: Held
