Final Results

Strong foundations laid ahead of planned regulatory submissions in 2023

Highlights
Chief Executive's Review
Risk Management
Independent Auditors' Report
Balance Sheets
Statements of Operations
Statements of Changes in Equity
Statements of Cash Flows

Results Download

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Risk	Description	Risk Status	Mitigation	Mitigation Effectiveness
BARDA	Burn development is heavily dependent on BARDA funding	Unchanged	Maintaining strong relationships and project focus	Effective – BARDA awarded an expansion of Option 1B in August 2022. Federal contract opportunity initiated for Health and Human Services Burn Wound Imaging technology. Company responded with proposal and will be evaluated for contract fulfillment.
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
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 – BARDA awarded an expansion of Option 1B in August 2022. Federal contract opportunity initiated for Health and Human Services Burn Wound Imaging technology. Company responded with proposal and will be evaluated for contract fulfillment.
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 – Increased marketing team by two product managers (US & UK). Outlined evidence needed in US & UK to support claims post regulatory approval and securing physicians to run case studies.
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 – hired 16 new employees with world leading capabilities in 2022
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 2022

	2022	2021
	US$	US$
Net loss	(2,912)	(3,988)
Adjust:
Depreciation Expense	11	1
Provision for Income Taxes	106	(98)
Interest Expense	12	17
EBITDA	(2,783)	(4,068)
Additional Adjustments:
Stock based Compensation	1,155	1,365
Change in fair value of warrant liability	(57)	(298)
Foreign exchange transaction loss	253	188
Other income	(49)	-
Adjusted EBITDA	(1,481)	(2,813)

	2022 US$	2021 US$
Assets
Current assets:
Cash and cash equivalents	14,174	16,121
Accounts receivable, net	2,294	1,435
Unbilled revenue	618	71
Prepaid expenses and other current assets	601	840
Total current assets	17,687	18,467
Non-current assets:
Property and equipment, net	21	32
Right-of-use assets	1,008	-
Other noncurrent assets	–	40
Total Assets	18,716	18,539
Liabilities and stockholders' equity
Current liabilities:
Accounts payable	2,759	1,414
Accrued expenses	2,631	2,603
Lease liabilities, short-term	680	–
Notes payable	175	583
Warrant liability	129	186
Total current liabilities	6,374	4,786
Lease liabilities, long-term	346
Total Liabilities	6,720	4,786

Commitments and contingencies (Note 8)

Stockholders' Equity
Common stock (US$0.001 par value); 400,000,000 shares authorized;
135,409,564 and 135,034,564 shares issued and outstanding as of
December 31, 2022 and 2021, respectively	135	135
Additional paid-in capital	23,795	22,640
Accumulated deficit	(11,934)	(9,022)
Total Stockholders' equity	11,996	13,753
Total Liabilities and Stockholders' Equity	18,716	18,539

	2022 US$	2021 US$
Research and development revenue	25,368	15,239
Cost of revenue	(14,531)	(8,187)
Gross profit	10,837	7,052
Operating costs and expenses: General and administrative	13,484	11,231
Total operating costs and expenses	13,484	11,231
Operating income (loss)	(2,647)	(4,179)
Other income (expense):
Interest expense	(12)	(17)
Change in fair value of warrant liability	57	298
Foreign exchange transaction loss	(253)	(188)
Other income	49	-
Total other income (expense)	(159)	93
(Loss) income before income taxes	(2,806)	(4,086)
Benefit (provision) for income taxes	(106)	98
Net (loss) income	(2,912)	(3,988)
Dividend on Series A preferred stock	–	(1,259)
Net loss attributable to common stockholders	(2,912)	(5,247)
Net (loss) income per share of common stock Basic and Diluted	(0.02)	(0.05)
Weighted average common shares outstanding Basic and Diluted	135,442,441	100,291,815