Interim results

 

Operational Highlights

  • Enrollment on track in the Biomedical Advanced Research and Development Authority (“BARDA”) Burn AI Training Study: 145 of the targeted 190 adult subjects (76%) and 25 of the targeted 60 pediatric subjects (41%).
  • Burn Image Assessment Study (“BIAS”) findings: burn specialists and Emergency Department (“ED”) physicians significantly less accurate in assessing wound healing vs non-healing than DeepView™.
  • Diabetic foot ulcer (“DFU”) AI Model created post Clinical Training Study with 81% accuracy. This is the live AI algorithm in use in the DFU Clinical Validation Study.
  • Initiated DFU Clinical Validation Study in June: up to 200 adult subjects across seven potential clinical sites. Data expected to support regulatory submission.
  • Filled key positions in Regulatory, Operations, Marketing, Administration, and Engineering to accelerate commercialization readiness.
  • Won Best Technology Award at the European Mediscience Awards in June. Criteria for winning technology: innovative, well-funded, capable of significant commercial success.

Post-Period Highlights

  • Awarded US$ 8.2 million US Government contract expansion with BARDA to accelerate commercialization pathway for the DeepView™ technology, bringing the total government funding commitment received by Spectral MD to over $125 million since 2013.
  • Strong DFU Clinical Validation study enrollment: 56/200 subjects enrolled since June initiation, remaining on track to report results in early 2023. This represents an important study to support the Company as it prepares FDA and CE mark submissions for DeepView®'s DFU indication, planned in 2023.

Financial Highlights

  • R&D revenue up 76% to US$ 12.3 million (H1 2021: US$ 7.0 million): accelerating BARDA funded studies.
  • Cash on hand of US$ 15.6 million on 30 June 2022 (H1 2021: US$ 18.5 million)
  • Removal of ‘Regulation S’ market trading restrictions from shares following the first anniversary on AIM.
  • Expanded Analyst research coverage to include Stifel and WH Ireland, in addition to SP Angel’s existing coverage.

Wensheng Fan, Chief Executive Officer of Spectral MD, said: “The Company has made solid progress in H1 2022 and is on schedule regarding the development of, and clinical studies for, Burn, DFU, and handheld applications. With the recent addition of the US$ 8.2 million BARDA contract expansion, we believe that the likelihood of potential federal procurement has increased, with an expedited timeline to award.

“Over the balance of 2022 and 2023, we will remain focused on completing enrollment in both Burn and DFU clinical studies and continuing to accelerate investment into the Company’s commercial readiness. We believe DeepView™ is the market leading technology that has the potential to disrupt current treatment pathways, and to improve the standard of care for many patients across multiple geographical markets and applications. We remain confident in our strategic approach and that our transformative technology is well positioned for success in providing Day One wound healing assessments.”

Market Abuse Regulation (MAR) Disclosure

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ('MAR'). Upon the publication of this announcement via Regulatory Information Service ('RIS'), this inside information is now considered to be in the public domain.

 

 

To The Members of Spectral MD

I am pleased to present the interim results for the six months ended 30 June 2022, for Spectral MD Holdings, Ltd. Spectral MD continues to make significant advances in the development of the DeepView™ Wound Imaging Technology for both Burn and DFU indications towards commercialization.

The development of each software / AI application involves an initial study for training the AI algorithm followed by a separate clinical validation study, subsequently followed by regulatory submission. Below is an update / outlook on each application, and on other key strategic elements.

Burn Indication (BARDA)

Update

Spectral MD has received substantial support from the US Government, with contracts from institutions such as the Biomedical Advanced Research and Development Authority (“BARDA”), National Science Foundation (“NSF”), National Institute of Health (“NIH”) and Defense Health Agency (“DHA”) in support of the Burn indication for its DeepView™ platform. Total grant funding awarded to date from these organizations is over US$ 125 million, including the recently awarded US$ 8.2 million contract expansion. Under the terms of the BARDA contracts, Spectral MD is reimbursed for qualifying spending as it enrolls subjects and progresses its clinical objectives.

This recent US$ 8.2 million contract expansion from BARDA will further accelerate the commercialization pathway for the Company’s DeepView™ Wound Imaging System. The award expands the current clinical training study for burn wounds, provides funds necessary to further increase DeepView™’s interoperability with health systems’ electronic health records (“EHR”), and provides funds to support the Company’s manufacturing capacity readiness.

In H1 2022, the Company passed the 150 subject enrollment mark in the Burn AI Training Study (initiated in 2021), with 145/190 adult subjects and 25/60 pediatric subjects enrolled, totaling 170 subjects (31 December 2021: 39 subjects). The study is currently running at eight clinical sites, with four additional sites in the engagement phase. The data collected during this study will further expand Spectral MD’s database of proprietary and clinically validated burn wound data points, which is used to train the deep learning AI algorithm.  As of 30 June 2022, this database was composed of 3.5 terabytes and 145 billion pixels. This database presents both a significant barrier to entry to would-be competitors in wound care healing assessment, and a potential additional commercial opportunity for the Company to develop further in the future.

Conference/Publication Update

In April 2022, the Company attended two US national conferences: the American Burn Association Conference and the American Academy of Emergency Medicine Conference. The Company gave a podium presentation on its Expanded Proof of Concept (ePoc) study results at the American Burn Association annual meeting. The presentations were as follows:

  • “Rise of the (Learning) Machines: Artificial Intelligence for the Assessment of Adult Thermal Burns”
  • “Iterative refinement of a histologic algorithm for burn depth categorization based on 1142 consecutive burn wound biopsies”
  • “Initial Experience Using Artificial Intelligence for the Assessment of Pediatric Burn Depth”

Burn Image Assessment Study (BIAS) Update

The Company conducted the BIAS study at both the American Burn Association and American Academy of Emergency Medicine Conference. The study demonstrated when looking at burn wound images, burn specialists and Emergency Department (“ED”) physicians are less accurate in assessing the areas of healing vs non-healing potential compared to the DeepView™ technology. Dr. Jeff Carter, Chief Medical Consultant of Spectral MD, and Treasurer of the American Burn Association (“ABA”), reiterated this point, as he stated: “It is surprising to find that 29% of the study participants’ clinical judgment suggested surgery on burn wounds that will heal, which leads to unnecessary surgery and waste of resources.”

Outlook

In H2 2022, we look forward to building on the rapid enrollment progress we experienced in H1. While the recent US$ 8.2 million expansion of Option 1B of our current BARDA contract will extend the clinical study into 2023, the Company and BARDA are optimistic about its potential to accelerate the commercialization of Burn DeepView™ technology in the US.

The Company continues to be in regular communication with BARDA to further develop our human resource leadership and infrastructure readiness for any potential federal level commercial contract award. The Company is fully committed to upscaling its operations and infrastructure in the near term to support BARDA’s procurement needs to distribute the DeepView® technology into hospitals including EDs across the US from 2024.

While our commercial priority for the Burn indication continues to be BARDA, the Company is also optimistic about the potential to accelerate the commercialization of its Burn DeepView™ technology in the UK and EU and looks forward to providing further updates on international expansion in due course.  

Diabetic Foot Ulcer (“DFU”) Indication

Update

Building upon promising results from the DFU Clinical Training Study, the Company successfully created a DFU AI Model in the first quarter of 2022, with 81% accuracy from a large and diverse population set.

In June 2022, Spectral MD initiated the Clinical Validation study to continue the development of its DFU application for the DeepView™ Wound Imaging System. The study will collect data from up to 200 adult subjects across seven potential clinical sites to further develop DeepView™’s AI algorithm. Patient enrollment for the validation study began in June and is expected to be completed by end of 2022, with final analysis compilation of the algorithm in early 2023.

The data collected from the validation study will be used to bolster the Company’s existing proprietary and clinically validated database of DFU images and physiologic information, and to train and improve the DeepView™ AI algorithm. Additionally, this study will collect data from a broader population set of up to 200 subjects, increasing geographic and ethnic diversity in the enrollment cohort. The data collected will provide important clinical evidence, as the Company prepares FDA, CE and UKCA mark regulatory submissions for DeepView™’s DFU indication, planned in 2023 - one of the necessary milestones required to commercialize DeepView®’s DFU application.

Outlook

In June, the Company successfully initiated the DFU Clinical Validation study and began patient enrollment. Post period end, we successfully enrolled 56 subjects, and we look forward to the continued enrollment progress which is expected to conclude by the end of 2022.

In anticipation of the Company’s plan to begin clinical studies in the EU and UK, Spectral MD has engaged in a clinical partnership with the Royal College of Surgeons Ireland, as well as other key opinion leaders to provide the Company greater knowledge in the wound sector outside of the US.

The regulatory submissions are planned to take place in early 2023 with expected clearances in the same year. Commercialization in the US is expected to start in the second half of 2023, followed by the UK and EU.

Technology Miniaturization (Handheld device)

Update

On 23 June 2021, the Company was awarded a two-year Sequential Phase II Small Business Technology 5 Transfer (STTR) contract for US$ 1.1 million by the DHA within the US Department of Defense. This funding enables the Company to research and develop a fully handheld and wireless version of the DeepView™ solution. The Company has previously been awarded STTR Phase I and Phase II contracts from the DHA.

In the 6-month period ended 30 June 2022, the Company has made considerable progress in the development of the miniaturized DeepView™ technology. The Company has developed a fully functional prototype of the DeepView™ technology, with the key optical and computing capabilities now in a fully handheld and wireless version.

Outlook

Building upon the progress made so far, the Company is working towards initiating a clinical study that will utilize and validate the DeepView™ fully handheld and wireless technology.

People and Organization

Update

With the Company’s accelerating development, much focus has been given to the development, hiring, and retention of highly skilled and focused individuals. In H1 2022, the Company saw headcount growth of +31% YoY with the addition of 14 full-time employees. The Company currently has 63 full-time employees in the US and UK. The Company continues to prioritize recruitment in the areas of operations, sales, marketing, government contracts, and product development, which it believes will enable the Company to meet its technology, IP, clinical, regulatory and commercialization readiness goals in 2022 and 2023.

In H1 2022, the Company successfully strengthened the leadership team by appointing Christine Marks to VP of Marketing and Commercialization and Vince Capone to General Counsel. Other key technical positions critical to development and commercialization were also filled, including a Data Science Manager, Algorithm Development Manager, Project Managers, Data Scientists, and Software Engineering Manager.

Outlook

The Company expects to increase its customer facing personnel to include clinical research staff, clinical educators, field service technicians and product management.

Intellectual Property (IP) Development

Developing and protecting Spectral MD’s intellectual property is one of the Company’s key priorities. In H1 2022, the Company filed a total of three new applications, including one US divisional application (reflective mode multi-spectral time-resolved optical imaging methods for tissue classification), one international Patent Cooperation Treaty application (high-precision, single-aperture, MSI snapshot imaging with multiplexed illumination), and one new provisional application (topological characterization and assessment of tissue).

Two new patents were allowed, including US patents in the MSI amputation site analysis/tissue classification family and in the original MSI+ Photoplethysmography (PPG) tissue classification family. In addition, during the period we have completed validation of our trademark registrations across all future major commercial markets.

Financial Review

Revenue of US$ 12.3 million represents research and development revenue in H1 2022. This is realization of non-dilutive research and development contracts with BARDA and DHA (H1 2021: US$ 7.0 million). This 76% increase versus 2021 arises from the increase in research and development activities under the contracts in clinical training and validation studies.

The cost of sales in H1 2022 was US$ 7.1 million (H1 2021: US$ 3.8 million) and gross profit was US$ 5.2 million (H1 2021: US$ 3.3 million). This is entirely associated with BARDA and DHA research and development contract activities.

During H1 2022, operating expenses increased US$ 1.4 million year over year to US$ 5.6 million (H1 2021: US$ 4.2 million). This is predominantly driven by the DFU indication development, and by development of organizational infrastructure to support near term commercialization - in particular additional personnel described above.

During H1 2022, the operating loss was US$ (0.5) million (H1 2021: loss of US$ (0.9) million). During H1 2022, adjusted EBITDA was a profit of US$ 0.2 million (H1 2021: loss of US$ (0.2) million). 

Cash and cash equivalents totaled US$ 15.6 million at the end of H1 2022 (H1 2021: US$ 18.5 million). H1 2021 cash balance included proceeds from the AIM listing on 22 June 2021. The H1 2022 cash figure represents a strong working capital performance, as management has made permanent improvements in the accounts receivable cycle.

Notes Payable totaled US$ 0.0 million [(H1 2021: US$ 0.8 million] at the end of H1 2022. During H1 2022, the Company repaid the remaining balance of a promissory note entered in 2020 with JPMorgan Chase Bank, N.A., as lender, pursuant to the Paycheck Protection Program (“PPP”) of the US government COVID-19 small business stimulus.

In conjunction with the closing of Company’s initial public offering on the AIM market in 2021, the Company issued 762,712 warrants, with a strike price of US$ 0.89 and a ten-year life, to SP Angel, who acts as nominated advisor and joint broker to the Company. As of June 30, 2022, the strike price was US$0.72. The change in the strike price is due to the change in exchange rates as the warrants will settle in shares denominated in British pounds. The fair value was calculated to be US$ 0.2 million (2021: US$ 0.5 million) at the end of 2021.

Effective 1 January 2022, the Company accounts for its leases under Accounting Standards Codification (“ASC”) 842, Leases. Under this guidance, arrangements meeting the definition of a lease are classified as operating or financing leases and are recorded in the condensed consolidated balance sheets as both a right of use asset and a lease liability, calculated by discounting fixed lease payments over the lease term at the rate implicit in the lease or the Company’s incremental borrowing rate. See additional discussion regarding lease accounting in the in the Consolidated Financial Statements and Footnotes

Following the first anniversary of the Company’s admission to the AIM market, the ‘Regulation S’ market trading restrictions were removed from the shares of common stock, save for those held by certain controlling shareholder thus enabling wider market access to acquire and sell stock via multiple trading platforms. Additionally, the removal of the charter restriction on the Spangenberg entities’ acquisition of further shares announced on 7 July 2022 provides further sources of potential market liquidity.

In H1 2022 and post period-end the Company widened its Research analyst coverage, with new research published by Stifel and WH Ireland in addition to SP Angel.

R&D Pipeline Strategy

The Company has begun to further assess other disease indications for DeepView™, following initial investigation studies already completed prior to the IPO in 2021. This exercise will result in an expanded and prioritized pipeline of future commercial opportunities, using the common DeepView™ hardware platform. Plurality of indications’ potential is an important criterion in BARDA’s evaluation of potential commercial contracts. The Company will continue to evaluate and investigate the data commercialization strategy: it will further expand its database of proprietary and clinically validated wound data points and continue to work towards assessing additional monetary value of this dataset.

Closing Statements

The Company has made solid progress on schedule in its development and clinical studies for Burn, DFU, and handheld applications in H1 2022. With the addition of the US$ 8.2 million BARDA contract expansion, we believe that the likelihood of a potential federal procurement has increased, with an expedited timeline to award.

Over the balance of 2022 and 2023, we will remain focused on completing enrollment in both Burn and DFU clinical studies. We believe DeepView™ is the market leading technology that has the potential to disrupt current treatment pathways, and to improve the standard of care for many patients across multiple geographical markets and applications. We remain confident in our strategic approach and that our transformative technology is well positioned for success in providing Day One wound healing assessments.

 

Wensheng Fan
Chief Executive Officer

 

 

Risk Management

The Company continues to assess, monitor, and mitigate the risks in the business. The principal risks, and the current assessment of the risk status and mitigation effectiveness are listed in the table below.

 

Risk Description Risk Status Mitigation Mitigation Effectiveness
BARDA Burn development is heavily dependent on BARDA funding Unchanged Maintaining strong relationships and project focus Effective – entered Option 1B expansion to accelerate commercialization pathway for the DeepView™ technology
DHA Development of a handheld device is reliant on funding Unchanged Maintaining strong relationships and project focus Effective – entered Phase II contract in June 2021 and project is on schedule to be completed in 2023 as planned
Loss of a major customer No commercial sales have been made, almost all revenue from fixed fees
and costs payable by BARDA
Unchanged Maintaining a strong relationship with BARDA and expect diversification of customers in future years following commercialization Effective – entered Option 1B expansion to accelerate commercialization pathway for the DeepView™ technology
Commercial The DeepView® system has yet to be launched into the US, UK, EU and other markets and so adoption and market penetration can only be estimated Unchanged Maintaining strong relationships and project focus Effective – expanding London office, established an EU presence in Dublin/Ireland, and engaged with Royal College of Scotland and other key opinion leaders; hired a VP of Commercialization and Marketing, continue to work with external consultants
Research and development Complex scientific research is necessary in the life sciences and medical device development sector Unchanged Recruiting and retaining highly skilled employees Effective – in H1 2022, the Company saw headcount growth of +30% YoY with the addition of 20 full-time employees. The Company currently has 62 full-time employees in the US and UK.
Product development timelines Unpredictability of the rate of patient recruitment into clinical trials Unchanged Maintaining strong relationships and project focus Effective – on schedule with trials
Regulatory approvals and compliance Obtain various regulatory approvals (including the FDA and EMA approvals) Unchanged Conducting thorough clinical and product market research and maintaining strong relationships with regulatory authorities Effective – engaged in regular discussion to update FDA and established partnerships with world leading expert teams of scientific
and regulatory affairs staff
Technological change Changing customer requirements and the introduction of products or services or enhancements embodying new technology Unchanged Continues to invest in technical developments and apply for patents Effective – issued additional patents in H1 2022

 

Non-GAAP measures as defined by the Company

The Company uses adjusted EBITDA as a non-GAAP metric when measuring performance, including when measuring current period results against prior periods adjusted EBITDA.

Because of their non-standardized definitions, non-GAAP measures (unlike GAAP measures) may not be comparable to the calculation of similar measures of other companies. Supplemental non-GAAP measures are presented solely to permit investors to more fully understand how Spectral MD management assesses underlying performance. Supplemental non-GAAP measures are not, and should not be viewed as, a substitute for GAAP measures.

Adjusted EBITDA

The Company defines adjusted earnings before interest, tax, depreciation and amortization ("adjusted EBITDA") as net income/(loss) excluding income taxes, depreciation of property, plant and equipment (including any related impairment charges), amortization of intangible assets (including any related impairment charges), interest expense, stock compensation, any non-operating financial income and expense.

 

 

Independent Auditors’ Review Report

The Board of Directors Spectral MD Holdings, Ltd.

Results of Review of Consolidated Interim Financial Information

We have reviewed the accompanying consolidated balance sheet of Spectral MD Holdings, Ltd. and its subsidiaries (the Company) as of June 30, 2022, the related consolidated statements of income and statements of changes in equity for the six-month periods ended June 30, 2022 and 2021, and the related consolidated statements of cash flows for the six-month periods ended June 30, 2022 and 2021, and the related notes (collectively referred to as the consolidated interim financial information).

Based on our reviews, we are not aware of any material modifications that should be made to the accompanying consolidated interim financial information for it to be in accordance with U.S. generally accepted accounting principles.

Basis for Review Results

We conducted our reviews in accordance with auditing standards generally accepted in the United States of America (GAAS) applicable to reviews of interim financial information. A review of consolidated interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. A review of consolidated interim financial information is substantially less in scope than an audit conducted in accordance with GAAS, the objective of which is an expression of an opinion regarding the financial information as a whole and accordingly, we do not express such an opinion. We are required to be independent of the Company and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our reviews. We believe that the results of the review procedures provide a reasonable basis for our conclusion.

Emphasis of Matter

As discussed in note 2 to the consolidated interim financial information, as of January 1, 2022, the Company adopted new accounting guidance, ASC Topic 842, Leases. Our review report is not modified with respect to this matter.

Responsibilities of Management for the Consolidated Interim Financial Information

Management is responsible for the preparation and fair presentation of the consolidated interim financial information in accordance with U.S. generally accepted accounting principles and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated interim financial information that is free from material misstatement, whether due to fraud or error.

 

KPMG LLP
Dallas, Texas
September 15, 2022

 

 

Consolidated Balance Sheets
FOR THE PERIOD ENDED 30 JUNE 2022, and 31 DECEMBER 2021

  UNAUDITED   
  30 JUN 2022  31 DEC 2021  
  US$ 000’s  US$ 000’s  
Assets      
Current assets:      
Cash and cash equivalents  15,577  16,121  
Accounts receivable, net  1,866  1,435  
Unbilled revenue  752  -  
Prepaid expenses and other current assets  531  858  
Total current assets  18,726  18,414  
      
Non-current assets:      
Property and equipment, net  26  32  
Right-of-use assets  350  -  
Other noncurrent assets  -  40  
Total Assets  19,102  18,486  
      
Liabilities, temporary equity and stockholders' equity      
Current liabilities:      
Accounts payable  3,001  1,740  
Accrued expenses  2,032  2,391  
Lease liabilities  324  -  
Notes payable  -  583  
Warrant liability  158  186  
Total current liabilities  5,515  4,900  
Total Liabilities  5,515     4,900  
      
      
Stockholders' Equity      
Common stock ($0.001 par value); 400,000,000 shares authorized; 135,559,564 and 135,034,564 shares  issued and outstanding as of June 30, 2022 and December 31, 2021, respectively  136  135  
Additional paid-in capital  23,266  22,640  
Accumulated deficit  (9,815)  (9,189)  
Total Stockholders' equity  13,587  13,586  
Total Liabilities, and Stockholders' Equity  19,102  18,486  
 
See accompanying notes to the unaudited consolidated financial statements

 

 

Consolidated Statements of Operations
FOR THE SIX MONTHS ENDED 30 JUNE 2022, and 2021

 UNAUDITED  UNAUDITED 
 SIX MONTHS SIX MONTHS
 ENDED ENDED
 30 JUN 2022  30 JUN 2021  
 US$ 000’s  US$ 000’s  
     
Research and development revenue 12,305  7,023  
Cost of revenue (7,132)  (3,770)  
Gross profit 5,173  3,253  
     
Operating costs and expenses:     
General and administrative 5,633 4,167  
Total operating costs and expenses 5,633  4,167  
Operating income (loss) (460)  (914)  
     
Other income (expense):     
Interest expense (2)  (4)  
Change in fair value of warrant liability 28  40  
Foreign exchange transaction loss (204)  -  
Other income 18  -  
Total other income (expense) (160)  36  
     
(Loss) income before income taxes (620)  (878)  
Benefit (provision) for income taxes (6)  (8)  
Net (loss) income (626)  (886)  
Dividend on Series A preferred stock -  (1,259)  
Net (loss) income applicable to common stockholders (626)  (2,145)  
Net (loss) income per share of common stock     
Basic and Diluted (0.00)  (0.02)  
Weighted average common shares outstanding     
Basic and Diluted 135,323,279  130,409,618  

See accompanying notes to the unaudited consolidated financial statements

 

 

Consolidated Statements of Cash Flows
FOR THE SIX MONTHS ENDED 30 JUNE 2022, and 2021

 UNAUDITED UNAUDITED
 SIX MONTHS SIX MONTHS
 ENDED ENDED
 30 JUN 2022 30 JUN 2021
 US$ 000’s US$ 000’s
Cash flows from operating activities:    
Net (loss) income (626) (886)
Adjustments to reconcile net (loss) income to net cash (used in)
 provided by operating activities:
   
Depreciation expense 6 -
Stock based compensation 627 667
Amortization of right-of-use assets 251  -
Change in fair value of warrant liability (28) (40)
Changes in operating assets and liabilities:    
Accounts receivable (431) 1,420
Unbilled revenue (752)  -
Prepaid expenses and other current assets 327 (114)
Other assets 40 (3)
Accounts payable 1,261 (2,342)
Accrued expenses (336) 64
Lease liabilities (300) -
Net cash (used in) provided by operating activities 39 (1,234)
Cash flows from financing activities:    
Proceeds from issuance of common stock and warrant, net of issuance costs - 14,591
Proceeds from stock option exercise - 2
Payments for notes payable (583) -
Net cash (used in) provided by financing activities (583) 14,593
Net increase (decrease) in cash and cash equivalents (544) 13,359
Cash and cash equivalents, beginning of period 16,121 5,125
Cash and cash equivalents, end of period 15,577 18,484
    
Supplemental cash flow information:    
Cash paid for interest 11 -
Cash paid for income taxes   -
    
Noncash financing activities disclosure:    
Cumulative dividend on Series A preferred stock   1,259
Conversion of preferred stock to common stock   2,373
Right-of-use assets exchanged for lease liabilities624 -

See accompanying notes to the unaudited consolidated financial statements

 

 

Unaudited Consolidated Statements of Changes in Equity
FOR THE SIX MONTHS ENDED 30 JUNE 2022, and 2021

          Additional Total
       Paid-in Accumulated  Stockholders'
  Preferred Stock  Common Stock Capital Deficit Equity
  Shares Amount  Shares Amount
    US$ 000’s  US$ 000’s US$ 000’s US$ 000’s US$ 000’s
 Balance at December 31, 2021-  -  135,034,564  135  22,640  (9,189)   13,586
 Stock options exercised – cashless -  -  150,000  -  -  -   -
 Stock compensation- - 375,000 1 626 -  627
 Net loss- - - - - (626)  (626)
 Balance at June 30, 2022 - - 135,559,564 136 23,266 (9,815)  13,587
                
          Additional Total
          Paid-in Accumulated  Stockholders'
  Preferred Stock  Common Stock  Capital Deficit Equity
  Shares Amount Shares Amount        
    US$ 000’s   US$ 000’s  US$ 000’s  US$ 000’s   US$ 000’s
 Balance at December 31, 20204,324,330 1,114 61,347,000 61 6,096 (5,022)  1,135
 Issuance of common stock for cash - - 19,067,797 19 15,595              -   15,614
 Issuance cost, net of $0.5 million warrant liability - - - - (1,506)              -   (1,506)
 Cumulative dividend on Series A preferred stock - 1,259 - - (1,259) -  (1,259)
 Conversion of preferred stock to common stock (4,324,330) (2,373) 53,889,765 54 2,319 -  2,373
 Stock option exercised for cash - - 22,500 - 2 -  2
 Stock compensation - - 312,504 1 666 -  667
 Other adjustments - - - - - (12)  (12)
 Net loss - - - - - (886)  (886)
 Balance at June 30, 2021 - - 134,639,566 135 21,913 (5,920)  16,128

See accompanying notes to the unaudited consolidated financial statements