Total Brain : December 2021 Quarterly Report (PDF)

For personal use only

28 January 2022

Australian Securities Exchange (ASX) Announcement

December 2021 Quarterly Update and Appendix 4C

Total Brain Limited ("Total Brain," "TTB" or "the Company"), a digital mental health SaaS company, is pleased to report on its activities for the quarter ended 31 December 2021. Key highlights from the quarter are set out below.

• During the quarter, Total Brain announced the following deals in its pharma support segment to license research data from its iSPOT-D (International Study to Predict Optimized Treatment for Depression):
  o As previously announced on 21 December, Janssen Research & Development, LLC, a division of Johnson & Johnson, entered a perpetual, non-exclusive license with Total Brain for USD $2.2M (A$ 3,058m).
  o As previously announced on 29 December, Alto Neuroscience, Inc. entered a perpetual, non-exclusive license with Total Brain for USD $500K (A$695k).
• Total Brain commenced invoicing its population health segment partner, IBM, with a first invoice for A$150K of revenue. This revenue was related to the set-up work and platform licensing for the official launch of the TTB Inside implementation of IBM's Health & Wellness 360 application with end users of IBM's first client.

• 1. Upon billing, TTB also recognized A$600K in its annual recurring revenue ("ARR") run rate which is the annual contractual fee for the minimum user population of 25,000 users with this client which was previously announced on 14 September 2021
• A new provider support segment deal was signed with Kerna Health to integrate Total Brain's platform into Kerna's Behavioral Health Technologies.
• 1. The deal expands Total Brain's provider support business market share.

1. Under the terms of the non-exclusive deal, and as the partnership scales over the upcoming 12-18 months, Total Brain's assessment and self-care tools will become available to all Kerna's managed patients as part of the TTB Inside

implementation. Further, Kerna's provider clients will have access to Total Brain's patient management and reporting capabilities.

• 1. Kerna has an extensive customer network which includes physician offices, hospitals, accountable care organizations, and long-term care facilities, with plans for significant growth in 2022.
• Total Brain grew its provider support segment client base in the last quarter through TTB Direct implementations, adding 9 new provider customers. In total, they represent an initial A$71k in initial ARR to the company, and each has the potential to scale as they add more patients to the platform. This growth is attributed to the company's complete rebuild of its provider platform earlier in 2021.

1

Total Brain Limited | ABN 24 094 069 682

15 Belvoir Street, Surry Hills NSW 2021, Australia

[e-mail] | totalbrain.com

For personal use only

• On 8 December 2021, announced that it had entered into a A$2m loan with Mitchell Asset Management that serves as an advance payment of the R&D tax incentive refund
  o TTB will repay the loan on receipt of the R&D tax rebate o The rebate is forecast in the Jan to March quarter
• On 19 November 2021 the Company announced that it had extended the term of the June 2021 unsecured loans to 18 March 2022.
  o The remaining balance is equal to A$1.2m.
• During the quarter, Total Brain collected A$3,961k in cash receipts, representing a 615% increase quarter-on-quarter.
• Total cash outflows via payments from operating and investing activities (items 1.2 and
  2.1 in Appendix 4C) decreased by 25% quarter-on-quarter (A$969k decrease).
  o Outside of customary fluctuations in the timing of payments and expenses part of the normal course of business, Total Brain expects this level of business expenses to continue in the following quarter.
  o Note: In accordance with Listing Rule 4.7C, payments made to related parties and their associates included in item 6.1 of the Appendix 4C include payments for remuneration of director fees to executive and non-executive directors in the normal course of business, excluding reimbursements of out-of-pocket expenses which is equivalent to the previous quarters expense.

Matthew Mund

Interim CEO

Total Brain Limited

For further queries please contact:

Investor	Media
Simon Poidevin	Nigel Kassulke
President - Australia & New Zealand	Managing Director, Teneo Consulting
E:[e-mail]	M: [phone]
	E:[e-mail]
About Total Brain Limited (ASX: TTB)

Total Brain Limited is a San Francisco and Sydney based company that has developed and offers Total Brain, the world's first mental health self-monitoring & self-care system powered by the largest standardized brain database. Its SaaS platform has helped more than 1 million registered users to-date scientifically measure and optimize their brain capacities while managing the risk of common mental conditions. Benefits for employers, large organisations and insurers include productivity improvements and healthcare cost reduction. For more information, please visit www.totalbrain.comand follow us on Twitter,LinkedInand Facebook.

Authorised on behalf of the Total Brain board of directors by Non-Executive Director Matt Morgan.

2

Total Brain Limited | ABN 24 094 069 682

15 Belvoir Street, Surry Hills NSW 2021, Australia

[e-mail] | totalbrain.com

For personal use only

Rule 4.7B

Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

Name of entity

Total Brain Limited
ABN	Quarter ended ("current quarter")
24 094 069 682	31 Dec 2021

Consolidated statement of cash flows	Current quarter	Year to date
			$A'000	(6 months)
				$A'000
1.	Cash flows from operating activities
1.1	Receipts from customers	3,961	4,515
1.2	Payments for
	(a)	research and development	-	-
	(b) product manufacturing and operating	(227)	(506)
		costs
	(c)	advertising and marketing	(177)	(440)
	(d)	leased assets	-	-
	(e)	staff costs	(2,208)	(4,611)
	(f) administration and corporate costs	(299)	(773)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	-	-
1.5	Interest and other costs of finance paid	(133)	(133)
1.6	Income taxes paid	-	-
1.7	Government grants and tax incentives	-	-
1.8	Other (provide details if material)	-	-
1.9	Net cash from / (used in) operating	917	(1,948)
	activities
2.	Cash flows from investing activities
2.1	Payments to acquire:
	(a)	entities	-	-
	(b)	businesses	-	-
	(c) property, plant and equipment	-	(10)
	(d)	investments	-	-
	(e)	intellectual property	(950)	(2,351)
	(f)	other non-current assets	-	-

ASX Listing Rules Appendix 4C (01/12/19)	Page 1
+ See chapter 19 of the ASX Listing Rules for defined terms.

For personal use only

Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows	Current quarter	Year to date
			$A'000	(6 months)
				$A'000
2.2	Proceeds from disposal of:
	(a)	entities	-	-
	(b)	businesses	-	-
	(c) property, plant and equipment	-	-
	(d)	investments	-	-
	(e)	intellectual property	-	-
	(f)	other non-current assets	-	-
2.3	Cash flows from loans to other entities	-	-
2.4	Dividends received (see note 3)	-	-
2.5	Other (provide details if material)	-	-
2.6	Net cash from / (used in) investing	(950)	(2,361)
	activities
3.	Cash flows from financing activities
3.1	Proceeds from issues of equity securities	-	6,523
	(excluding convertible debt securities)
3.2	Proceeds from issue of convertible debt	-	-
	securities
3.3	Proceeds from exercise of options	-	-
3.4	Transaction costs related to issues of	-	(472)
	equity securities or convertible debt
	securities
3.5	Proceeds from borrowings	2,197	2,197
3.6	Repayment of borrowings	(99)	(791)
3.7	Transaction costs related to loans and	-	-
	borrowings
3.8	Dividends paid	-	-
3.9	Other (provide details if material)	-	-
3.10	Net cash from / (used in) financing	2,098	7,457
	activities

4. Net increase / (decrease) in cash and cash equivalents for the period

4.1	Cash and cash equivalents at beginning of	2,594	1,427
	period
4.2	Net cash from / (used in) operating	917	(1,948)
	activities (item 1.9 above)
4.3	Net cash from / (used in) investing activities	(950)	(2,361)
	(item 2.6 above)
4.4	Net cash from / (used in) financing activities	2,098	7,457
	(item 3.10 above)

ASX Listing Rules Appendix 4C (01/12/19)	Page 2
+ See chapter 19 of the ASX Listing Rules for defined terms.

For personal use only

Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows	Current quarter	Year to date
		$A'000	(6 months)
			$A'000
4.5	Effect of movement in exchange rates on	(52)	32
	cash held
4.6	Cash and cash equivalents at end of	4,607	4,607
	period
5.	Reconciliation of cash and cash	Current quarter	Previous quarter
	equivalents	$A'000	$A'000
	at the end of the quarter (as shown in the
	consolidated statement of cash flows) to the
	related items in the accounts
5.1	Bank balances	4,607	2,594
5.2	Call deposits	-	-
5.3	Bank overdrafts	-	-
5.4	Other (provide details)	-	-
5.5	Cash and cash equivalents at end of	4,607	2,594
	quarter (should equal item 4.6 above)
6.	Payments to related parties of the entity and their	Current quarter
	associates		$A'000
6.1	Aggregate amount of payments to related parties and their	212
	associates included in item 1
6.2	Aggregate amount of payments to related parties and their	-
	associates included in item 2

Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments

Item 6.1 includes payments for remuneration of director fees to executive and non-executive directors in the normal course of business, excluding reimbursements of out-of-pocket expenses which is equivalent to the previous quarters expense

ASX Listing Rules Appendix 4C (01/12/19)	Page 3
+ See chapter 19 of the ASX Listing Rules for defined terms.