Echo IQ (EIQ) Q4 2024 TU earnings summary

Strategic and operational highlights

• Submitted FDA 510(k) application for EchoSolv after successful US Reader Study; FDA review ongoing with additional information requested and response expected soon.

• Entered a commercial licensing agreement with ScImage Inc., integrating EchoSolv into the PICOM365 platform, targeting deployment in key US cardiology practices and hospitals.

• Commenced a new clinical study with St. Vincent's Institute to validate a novel AI algorithm for heart failure detection, aiming for FDA clearance and reimbursement codes.

• EchoSolv demonstrated at a major US heart conference, showing 15% higher detection of severe aortic stenosis compared to human diagnosis, with significant benefits for underdiagnosed cases.

• Echo IQ's heart failure innovation to be featured in two late-breaking science presentations at the European Society of Cardiology Congress in August 2024.

Financial and corporate update

• Cash and cash equivalents at 30 June 2024 were $2.117M, with $2.125M received from option exercises during the quarter.

• Net cash used in operating activities for the quarter was $1.684M, with estimated 1.3 quarters of funding available at current burn rate.

• $122,000 paid to related parties for director salaries and associated costs.

• No further performance securities to be issued under the lapsed Alerte Echo IQ Pty Ltd acquisition agreement.

• Directors expect to receive a $1.2M R&D tax rebate in coming quarters and are confident in raising additional capital if needed.

Outlook and upcoming priorities

• Focus on securing FDA clearance for the AI solution for aortic stenosis and advancing reimbursement code applications in the US.

• Support commercial applications in the US Remote Patient Monitoring sector and convert sales pipeline into agreements.

• Continue clinical validation of the heart failure AI algorithm.