IP : Intelligent Ultrasound Group plc - Half Year Report

Intelligent Ultrasound (AIM: MED ), the artificial intelligence (AI) based ultrasound software and simulation company, announces its unaudited half year results to 30 June 2020. Despite the global impact of Covid19, the Company reduced its EBITDA ¹ loss to £1.2m ( H1 2019: loss of £1.3m) on a reduced revenue of £2.5m ( H1 2019: £3.1m) and continued to successfully progress the development of four AI software products. The Company also successfully raised £5.2m from new and existing shareholders in May 2020.

Financial Highlights

• Generated revenue of £2.5m (H1 2019: £3.1m)
• Reduction in SG&A costs limited the EBITDA loss for the period to £1.2m (H1 2019: loss of £1.3m)
• Successful placing raising £5.2m in May 2020
• Cash balance at 30 June 2020 of £10.1m (31 December 2019: £7.3m)
• Net cash used in operating activities of £1.5m (H1 2019: £1.7m)

Operational and Recent Highlights

Clinical AI Division

• First ScanNav AI image analysis software remains on track for 2021 revenue generation
• Commercial discussions with a number of OEMs for ScanNav AnatomyGuide software continue
• Post period end, CE regulatory paperwork for ScanNav AnatomyGuide, filed on 24 July 2020
• Completed first AI models for the new ScanNav Lung/Covid19 image analysis software
• Completed AI proof of concept for ScanNav Prostate image analysis software

Simulation Division

• Covid19 module released on BodyWorks Eve simulator in March was offered free to existing customers and used to train frontline staff, especially in London (Nightingale Hospital) and New York (VA Harbor Healthcare)
• Successfully minimised the impact of Covid19 despite the severe constraints on selling and marketing products into hospitals
• Moved to a new warehouse facility in Caerphilly, providing larger manufacturing and distribution capacity for our all Group products

¹EBITDA is a non-GAAP measure defined as operating loss before depreciation, amortisation, and impairment

Riccardo Pigliucci, Chairman, commented: 'This is clearly a volatile time for businesses in almost all regions of the world. We are pleased to have traded relatively well during the first wave of the pandemic, but it remains hard to predict sales with the current restrictions and the potential for a second wave of the virus, further limiting access to our customers and collaborators in hospitals around the world.

'However, despite these restrictions, the management remain confident that our strong cash position, combined with a growing ultrasound simulator product range and a stream of future clinical AI revenues that we anticipate will start generating revenues next year, should enable the Group to reach its profitability inflection point. We are grateful to our shareholders for their support and look forward to updating the market as we continue to increase value in the business.'

Enquiries:

Intelligent Ultrasound Group plc	www.intelligentultrasound.com
Stuart Gall, CEO Helen Jones, CFO	Tel: [phone]
Cenkos Securities	Tel: [phone]
Giles Balleny/Cameron MacRitchie ( Nominated Adviser ) Michael Johnson/Julian Morse (Corporate Broking)
Walbrook PR	Tel: [phone] or [e-mail]
Anna Dunphy/Paul McManus	Mob: [phone]/Mob: [phone]

About Intelligent Ultrasound ( www.investors.intelligentultrasound.com )

Intelligent Ultrasound (AIM: MED), the intelligent ultrasound software and simulation company, develops artificial intelligence-based clinical image analysis software tools, augmented reality-based needle guidance software and advanced hi-fidelity haptic and manikin-based training simulators for medical practitioners.

Based in Cardiff in the UK and Atlanta in the US, the Group operates two divisions:

Intelligent Ultrasound Simulation Division

Focusses on hi-fidelity ultrasound education and training through simulation. Its three main products are the ScanTrainer obstetrics and gynaecology training simulator, the HeartWorks echocardiography training simulator and the BodyWorks Eve Point of Care and Emergency Medicine training simulator. To date nearly 900 simulators have been sold to over 500 medical institutions around the world.

Intelligent Ultrasound Clinical AI Division

Focusses on developing deep learning-based algorithms to make ultrasound machines smarter and more accessible. Products in development include ScanNav which uses machine-learning based algorithms to automatically identify and grade ultrasound images to provide scan assessment and audit of protocol-based ultrasound scanning; and ScanNav AnatomyGuide, which aims to simplify ultrasound-guided needling by providing the user with real-time AI-based needle guidance software for a range of medical procedures.

Some products in the pipeline may require US FDA or other regulatory approval, as such this material should be considered informational only and does not constitute an offer to sell or infer claims or benefits.