EIQ getting some good results with its heart failure studies. What is truly shocking is that heart failure accounts for 17% of the US health care expenditure! And Echosolve HF seems to significantly help the correct diagnosis of the disease. Of course there is a long way to go to finish the studies, get FDA approval and build a real business but it is nice to see another component to the business.

EIQ heart failure announcement Nov 2025.pdf

Nessy

held.

Latest 4C showed no revenue but did give a timeline for resubmission of the CPT III reimbursement code. Pushes expected revenue to 4Q?

$18M in the bank with a cash burn of $6.5M in the last 12 months. Will be interesting to see the 1Q of CY26 to get an indication of when cash flow positive may occur. Possible re-rate on FDA clearance and CPT reimbursement code before then but expecting the SP to be pretty static until then.

"There are three CPT Editorial Panel Cycles per year and Echo IQ completed resubmission prior to the deadline of 11 June 2025, allowing the Company to present its application in September 2025 for a potential code receipt shortly thereafter."

Still predicting H2 25 FDA clearance for HF on the back of the Mayo Clinic validation study.

"Separately to this, negotiations with large device manufacturers, global pharmaceutical companies and other hospital groups continued to advance pleasingly.”  Strange wording, very vague.

OUTLOOK

Completion of the Company’s validation study for EchoSolv HF in collaboration with the Mayo Clinic Platform and finalising requirements for FDA submission and subsequent clearance

Convert its growing pipeline of US hospital groups, pharmaceutical companies and device manufacturers to increase uptake of EchoSolv AS in the US

Commencement of integration opportunities with SARC MedIQ’s large network of US hospital groups, healthcare organisations and other large multi-clinic sites

Advance preparations and presentation to CMS and progress work towards a Category III CPT code and designated CPT code for EchoSolv AS allowing for reimbursement for US users

I like the deal today.

Not sure of the revenue and how this works, however happy to have exposure to over 300 healthcare facilities and 1500 physicians.

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02966379-2A1607958&v=4a466cc3f899e00730cfbfcd5ab8940c41f474b6

Hold IRL

Help me please, Strawpeople! Have a read of this - EIQ US listing.pdf

So, EIQ is going to be listed on the OTCQB market to facilitate access to US investors. Does this purely mean US investors can buy the current EIQ shares available in Australia during the US opening times? No dilution? Possible big changes in price as our market opens if there is strong buying/selling there? Would appreciate information from anyone and also whether people think this is a good move generally (and more specifically for a small AI health company).

Nessy

Disc: held

An interesting announcement for EIQ today. This is the next part of the business, diagnosing heart failure better (huge market). Mayo is a great partner for continued research. Interesting they are still expecting FDA approval 2nd half CY25, even with Trumps cuts to the FDA system. Let's see if that gets pushed back.

Disc - held.

ASX announcement.

No talk of revenue, however a nice deal to land and expand in my opinion.

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02930295-2A1587640&v=7bc42bd11d853ed5e8c28f2ffcd6a069ee5cd6b4

Disc : Hold

Interesting the run in EIQ of recent on no news. Up over 20% in the last couple of weeks, some reasonable volume too. Adam Dawes did give it a rev on Equity Mates on Feb 11, maybe has helped it on its way to almost all time highs. Funny that the description he gave of the company wasn't really what I would call totally accurate! Has this made EIQ a "popular" stock?? Or is there an announcement coming up??

Nessy

Held

EIQ reimbursement rates Dec 2024.pdf

Not sure I really understand insurance reimbursement rates in the US, even having worked there it is still somewhat of a mystery to me. I guess the good thing is the announced rate seems to be higher than what was expected.

Nessy

held IRL & SM

Great interview as always Strawman.

COO Philip seemed to get a little vague when he was asked specific questions. For example:

i) In relation to the competitor company Icardio with the product Echocardio, whom received FDA approval in the same month as EchoIQ. When asked what this competitor approval meant for EchoIQ, he responded they were about “measurement”. How the two FDA approved software systems differed and why the EIQ product was superior was not well explained.

ii)       When asked the question in relation to progress of the Hydrix (HYD) 3 year agreement signed in April 2023 with EIQ to sell the “Echosolve” software in Australia NZ and Singapore, he was again vague. Philip talked about a pilot being extended out with Hendrix and these things taking time to get moving.  Well, the total operational revenue in FY 24 was only $44,500. This does not speak to a business or relationship that is firing.  In addition, you would think the recent FDA approval might have stirred some interest in the Australian market Philip could expand on.  

iii) Philip was asked about the announced (16/9/24) Icardio.ai collaboration with Abbott to develop artificial intelligence for Abbott’s imaging devices, the response was along the lines of: Well, this does not preclude Abbott from entering an agreement with EIQ. A fair enough statement as far as it goes, but not one that would encourage an investor to open their wallet.

Maybe Philip is not giving too much away because of the competition and the critical stage the company is at.  Fair enough too, and maybe I am being way too harsh.  

It would be great if there is a Strawman Cardio somewhere out there in the medical heartland (note the ingenious word pun), or someone knows one whom can give an objective opinion on EIQ’s software?  Because F*&^%ed if I know what to think.

@Strawman , great interview with Philip Woolff from EIQ. He strikes me as a man with great vision and a reasonably clear pathway to get where he thinks EIQ can go. It will be very interesting to see how the new American leader can start to commercialise their product in the new year. One question I have only just thought of that would have been worth asking is how long he thinks FDA approval would take for the heart failure side of the business - perhaps you can send him that and see if he replies. Once cash starts to flow it does seem like a favourable acquisition for a bigger US group, especially at its small valuation.

Nessie

disc: held

@Strawman , maybe you could reach out for another EIQ meeting. Lots of recent interest with the FDA approval. Hype in the stock price too, probably too much. Would be good to ask about how their research in to heart failure is going given it is potentially a bigger market.

Cheers,

Nessy

EIQ significantly derisked with FDA approval of AS diagnosis. Reimbursement codes next step and announcement of CEO should build momentum.

Highlights:

510(k) clearance secured from FDA allows for EIQ’s AI-enabled solution, EchoSolv AS to be marketed and sold in the USA

EIQ is in advanced discussions with a range of US healthcare providers around the potential uptake of EchoSolv AS – pipeline is well established with multiple groups

Ongoing liaison with device manufacturers and pharmaceutical companies advancing to broaden commercialisation pipeline

Work alongside US consultancy to obtain reimbursement codes for use of EchoSolv AS under insurance to scale up following FDA clearance

Company is well funded to advance multiple, near-term commercialisation opportunities

Advanced discussion with potential US based CEO with extensive healthcare, commercialisation and reimbursement experience.

“Following clearance, the Company is now aggressively focused on commercialisation."

Hot copper email sent out sharing a next investors article about EIQ. ("The Company has been engaged by EIQ to share our commentary on the progress of our Investment in EIQ over time").

Headline is that FDA approval could be any day now. The article does give a detailed run down on the company and outlines the risks. Their view is that it will take at least 12 months to ramp up sales. It does note that they have an investment in the company and include their investment memo.

Highlights of their thesis

"The data shows that the AI algorithm works.

Imminent share price catalyst in potential aortic stenosis FDA approval.

Multi-billion dollar market target for “heart failure” diagnostics assistant.

Second catalyst for FDA approval on heart failure could be within 12 months.

Exclusive commercial access to the world's biggest heart data repository

Clear pathways to commercialisation in the USA - the biggest healthcare market in the world.

SaaS revenue model, potential to rapidly grow revenue and/or secure large licensing deals.

Cost savings, 3 seconds until results, removing bias"

Could provide some momentum to the SP.

Disc: held in SM and RL

Investor presentation webinar gives some possible revenue and answers some of the questions regarding progress.

Anticipated reimbursement for Aortic Stenosis is US$68 of which EIQ gets 25% at ~90+% margin. US $8.5M ARR @10% market share (conservative 5M number of Echocardiograms only Medicare, total could be closer to 35M). In contrast the same market share for Heart Failure is $264 @25% or $42M as the penalties for hospitals are much higher if the patient returns to hospital following missed diagnosis or insufficient treatment.

Reimbursement allows EIQ to clip the ticket rather than charging the medical centre.

$4M cash burn in last 12 months. Stated that HF approval not needed to be a successful company. AS treatment in UK only @10% so large market expansion potential for device/ drug treatment.

HF FDA approval expected in the next 12 months. Reimbursement should follow shortly after.

Licensing discussions ongoing with device manufacturers, pharmaceutical firms and hardware producers. Expected to peak post approval and reimbursement.

Accepted that initial push on missed diagnoses had not been well received and so now focusing more on improved workflow and practitioner assist. Although the algorithm is black box they are trying to show how the numerical data generated leads to the decision to provide greater transparency.

Claiming competitors AI solutions were about improving the image rather than aiding the decision but pretty vague.

Suggesting that once a partner top US hospital is using the product, liability concern issues will drive wider adoption.

Following the study results announcement EIQ went into a trading halt for a CR. Despite earlier statements about options providing sufficient funding I had taken a small $1K position in RL assuming that a raise was coming and hoping to take part. However $7.1M was raised only from institutional investors @15c. "Several new institutional investors introduced to the register."

$4.65M for commercialisation, $1M for product development, $0.45M for FDA and trial costs and $1M for working capital.

47.4M new shares issued a dilution of 9% @5.4% to 5day VWAP so at least not heavily discounted. SP currently @16.7 so in the money.

EIQ announces positive study results for Heat Failure AI solution. FDA decision for Aortic Stenosis due soon and now pursuing approval for heart failure.

Highlights:

• Echo IQ recently completed two clinical studies to evaluate the performance of its Heart Failure AI system in detecting new onset heart failure:

o EIQ’s AI-alone detects 86% of heart failure cases (vs 46% detection observed in current standard clinical practice)

o Combination of AI and clinical evaluation increases diagnosis accuracy to 97% in high-risk individuals

• Heart failure is the leading cause of re-hospitalisation in the US, accounts for 17%(1) of all US healthcare expenditure and is a US$60bn market annually.

• Results were presented by invitation at Late Breaking Science sessions at the European Society of Cardiology (ESC) Congress 2024, the world’s largest and most renowned cardiology congress.

• Positive results form the basis for FDA application for EIQ’s AI solution as a diagnostic aid for the detection of heart failure.

• Groundbreaking results highlight EIQ’s potential ability to positively impact heart failure health economics – Reimbursement strategy being progressed.

• Significant commercial interest established and expected to scale in light of significance of results.

“The current status quo is not acceptable, since many patients with heart failure do not receive a clear diagnosis, and similarly other individuals at risk of heart failure may not be identified. The results of these studies demonstrate our ability to positively change the diagnostic landscape and to improve on current practices, with the goal of enhancing our patients lives.”

Proposed regulatory pathway and commercial opportunities: Following the presentation of these results at ESC Congress 2024, the Company remains well placed to advance its regulatory strategy with an application for US FDA clearance for its heart failure solution. Work is now underway toward a pre-submission meeting with the regulator, which will provide additional insight into its clearance pathway. Concurrently, Echo IQ has been engaging with a number of leading global pharmaceutical companies and device manufacturers, with both on-market and planned therapies for heart failure and associated conditions. These results are expected to advance these discussions ahead of potential commercial uplift with counterparties.

EIQ FDA submission 2024.pdf

90 days till the results of the FDA submission approximately. Will be waiting patiently for this one!

Nessy

held

EIQ quarterly report for the 3rd quarter here EIQ quarterly Q3 2024.pdf

Looking for a CEO again. Hopefully a better choice this time.

US Reader study finished which enables FDA submission in next 2 weeks. Apparently it takes about 100 days for approval (if given). This will be the critical cornerstone of the business. I believe they have extensive good research to back up their application.

The next phase is adapting EchoSolv to heart failure, which is the leading cause of hospital admissions for over 65's worldwide. Their new algorithm for heart failure has been lodged for patent. EIQ expects an Australian study to start shortly and be completed by August 2024. Assuming a successful outcome, a US study would be initiated shortly after.

Boom or bust? Seems the research is good for FDA approval and commercialisation channels are being put in place. Given this is broadly in my area of health I am happy to have a small holding.

Nessy

EIQ letter.pdf

So the former CEO did buy before a market sensitive announcement about completion of the US Reader Study, but he had no knowledge of the upcoming announcement. It was his cultural fit that the company wasnt happy with. Does one say the appointment was not well researched enough or he was a very good actor and his real personality wasnt evident until he was a few months in to the job. Hopefully the latter and the board made a good swift decision before too much harm was done. Time will tell.

Nessy

held

So the new CEO from end of Jan 2024 is now the former CEO...... Never like those sorts of announcements. I wonder if it was anything to do with him buying 500k shares on market just recently.

Nessy

disc - held

Looks to be a well credentialed appointment to help direct a promising product to market.

EIQ CEO appt.pdf

Nessy

Disc: held IRL & SM

EIQ update Dec 2023.pdf

Steady progress to FDA approval. Also searching for a new CEO who is capable of driving the next phase. Credit to the current team to recognise they may need help in taking that step to further commercialisation and cash generation.

Nessy

disc: held

EIQ announcing progress towards "whole of heart solution". This is where their product becomes compelling as it covers most/ all of the conditions a cardiologist is concerned about. The access to the largest echo-cardiogram database should give them the ability to have greater accuracy if their algorithm can utilise it. New SaaS contracts pending

Six new cardiac decision-support solutions to be introduced between November 2023 & January 2024.

Product expansion will significantly increase EchoSolv’s addressable market.

EchoSolv platform advances towards delivering a “total heart solution” for 8 cardiovascular diseases and diagnostic indicators.

1. Diastolic Dysfunction

2. Heart Failure

3. Hypertension

4. Left Atrial Volume

5. Left Ventricular Mass

6. Mitral Stenosis

Based principally on current industry diagnostic guidelines, these new modules fall outside the scope of FDA regulation which allows us to fast-track their introduction to the market.

Separately, new revenue-generating Software as a Solution (SaaS) contracts for EchoSolvTM’s current modules are pending.

“We are also pleased to confirm that our commercial pipeline for EchoSolv’s current SaaS offering continues to build very favourably and we anticipate adding new revenue-generating contracts with hospitals and cardiologists in the near-term. There are a number of avenues to build the revenue base beyond SaaS deployments and a number of exciting opportunities continue to advance in this regard too.”

Held in SM and RL

EIQ pathway for FDA approval.pdf

Good info from EIQ showing progression to FDA approval and patients obtaining a rebate from health insurance. Also gives an indication of revenue from a scan. Many things in place for bigger things to happen in early 2024 it seems

Nessy

held in both

No revenue for this quarter and a cash burn of $1.7M. Next quarter has $500K options already exercised (remainder CY24, 145M outstanding ranging from 4c to 30c) and $650K R+D rebate. Should see some small revenue start next quarter but with $3.3M cash a raise is looking probable. Significant revenue likely following FDA approval early CY24. IP protection noted in quarterly report as a priority.

Pathway to FDA on-track, with reader study underway and final clearance anticipated Q4CY2023 /Q1CY2024

Echo IQ and EchoSolv(TM) will also be featured by Hydrix Medical at the Cardiac Society of Australia and New Zealand Conferenced in Auckland, New Zealand in August 2023. Echo IQ's Chief Medical Advisor will also be speaking at this important regional conference.

Increased operating expenses, reflecting an emphasis on sales and marketing activities, are starting to yield positive commercial impact, as reflected by the new partnerships and contracts announced . The Echo IQ Board of Directors was enhanced with the appointment of Simon Tolhurst, an experienced lawyer with expertise in competition law and mergers and acquisitions.

Commissioned broker report with a valuation of $0.59 gives a good detailed overview of the company and investment thesis.

Based on our modelling of revenues and expenses, we see EIQ achieving breakeven at the EBITDA line in FY25.

Financing EIQ’s first product EchoSolv™ was launched in December 2022. Growing the business in the near term is dependent on cash from revenue which is currently generated solely by EchoSolv™. As such, and until the product is generating sufficient income, the company will be reliant on access to external funding. 

Intellectual property EIQ is using a broad single patent approach across all conditions related to structural heart disease to protect its intellectual property. Its Australian provisional patent application (2022901868) is called ‘Systems and Methods for AI-assisted Echocardiography’. Intellectual property risk, notwithstanding the granting of the patent, could be offset by gaining a first-mover advantage, which – given the multifaceted commercialisation activity to date and lack of direct competition in imaging – seems within reach.

Next heart condition for Echosolv. This starts to build the advantage that EIQ can have if it can continue to leverage the big data lead and keep developing new applications to make their product the must have solution.

Echo IQ introduces new EchoSolv module for Mitral Regurgitation

Mitral Regurgitation is the most common type of heart valve abnormality, and is subject to high rates of under-diagnosis

AI-backed decision support solution designed to increase identification of the progression of chronic Mitral Regurgitation

New solution development complete, with availability from August 2023

Sales pipeline for EchoSolvTM continues to grow with new deployments pending 

"We can now pursue sales of the AI-backed software that supports improved detection of two forms of heart disease, thus increasing its commercial appeal to cardiologists, hospitals and healthcare facilities. Prior to the launch of the software in August, we expect to report a number of new sales of EchoSolvTM given the strong growth in our sales pipeline recently.” 

Held

First Australian contract in Queensland @70k/year. Sounds like it will also be a test bed for other forms of structural heart disease. Good to see revenue starting and will be interesting to see the next set of results to get some idea of margin.

Highlights:

• EchoSolv to be deployed in Gold Coast Private Hospital representing the maiden sale of EIQ’s AI-backed SaaS technology into a large hospital

• Sales pipeline is building strongly in the US and Australia

The agreement is for an initial term of 12 months which commences upon receipt by the Company of historical measurement data from GCPH for initial review. The agreement includes standard commercial terms for a contract of this nature and is expected to generate revenues to Echo IQ of approximately $70,000 annually. The agreement also provides GCPH with early-access to new AI-backed solutions from Echo IQ designed to address additional forms of structural heart disease.

Gold Coast Private Hospital is a leading Queensland hospital and part of HealthscopeLtd’s network of 42 hospitals across Australia.

Here in rl and sm

EchoSolv to be made available to 700 US cardiovascular facilities through Studycast integration agreement. No details as to how this affects margins (as it clips the ticket on sales) but a good way to make access to EchoSolv easy and raise the profile by being showcased at American Society of Echocardiology Conference.

Highlights:

Integration Partner agreement with Core Sound Imaging

Core Sound Imaging supplies comprehensive imaging workflow platform, Studycast to medical facilities in 49 US states and territories and 7 countries. Agreement will see EchoSolvTM integration made available to 700 cardiovascular facilities

EchoSolvTM to be integrated into Studycast imaging and reporting platform

Rapid uptake to be supported by strong presence at ASE Conference, June 2023 Sydney

Under the terms of the one-year agreement, EchoSolv will be integrated into the Studycast system. Echo IQ will remain responsible for the direct sale of EchoSolv to prospective users, however access to EchoSolv will be simple and fast with this new turnkey integration interface.

User benefits of this agreement include:

1. Every user of Studycast will have access to the integration, enabling them to leverage the diagnostic support power of EchoSolv;

2. Users will be able to embed EchoSolv assessments into current reporting; and

3. Technical integration for mutual customers of EchoSolv and Studycast is no longer necessary with access via built-in integration.

The agreement gives Echo IQ several important benefits as commercial roll-out of EchoSolv accelerates. Studycast customers will be able to gain access to EchoSolv almost instantly. They can do so with zero additional technical integration required, and they can see EchoSolv assessments directly embedded into their existing diagnostic workflow.

Pursuant to the agreement, the Company will pay Core Sound Imaging an integration licensing fee. New and existing users will be able to access EchoSolv via the Studycast platform by entering into a direct sale with the Company. 

Comments

Core Sound Imaging COO and founding partner, Laurie Smith, said: “We expect our Studycast clients to benefit immediately from the AI-backed decision support capability of EchoSolv. Having the flexibility to use this novel technology without the complexities of manual set-up will make the adoption of AI in cardiovascular care easier and simpler than many may have imagined. We are delighted to be showcasing EchoSolv later this month at ASE 2023 (the American Society of Echocardiology Conference) and expect our customers to embrace this important solution as part of the Studycast Integration Program.”

Echo IQ Executive Chair, Andrew Grover, added: “Studycast has significant market penetration in US cardiovascular hospitals and this established presence and trust delivers and outstanding commercial opportunity to Echo IQ given Core Sound Imaging’s acceptance of our technology. The value of this two-year agreement should not be underestimated by our shareholders and it is further validation of EchoSolv. Commercial take up of EchoSolv is gathering pace in the US and Australia and we anticipate more revenue-generating deployments to be reported shortly.”

EIQ organising its approach in to the US by partnering with American College of Cardiology. Appointing a distributor for ANZ and S ingapore. Still no detail on pricing model but some info on the rolling commission in the ANZS distributor Hydrix ASX announcement.

• Echo IQ enters US partnership with MedAxiom, an American College of Cardiology company

MedAxiom is linked to over 475 cardiovascular organisations in the United States encompassing 6,500 cardiovascular leaders, over 13,200 clinicians and around 2,700 administrators.

• Echo IQ appoints Hydrix Medical Pty. Ltd, a subsidiary of Hydrix Limited (ASX:HYD), as sales partner for Australia, New Zealand, Singapore

Under the terms of this three-year re-seller agreement, Hydrix Medical will promote, market and sell EchoSolv to the cardiology healthcare sector. More than 1 million echocardiograms and 10,000 Aortic Valve replacements are carried out annually in Australia, New Zealand, and Singapore

Echo IQ will pay Hydrix a sales commission on each qualified customer contract facilitated by Hydrix, and entered into by Echo IQ directly with the customer. A portion of the commission is payable to Hydrix upfront after Echo IQ completes the initial customer implementation, and thereafter on each contract anniversary date for the remainder of the contract period, based on the recurring fees payable by the customer to Echo IQ.

• US commercial team strengthened with recruitment of an experienced and well networked East Coast Business Development Manager

• Australian commercial team increased with recruitment of Queensland Business Development Manager

The Company retains the ability to sell directly in Queensland to ensure Echo IQ continues to benefit from direct industry engagement and to incorporate market insights into its product roadmap.

”Advanced commercial discussions are ongoing with several healthcare providers across Australia and the US which gives me great confidence in progress of the commercialisation of EchoSolvTM. Echo IQ looks to be exceptionally well-placed for the year ahead.”

Media from Ch9 and The Australian following the trial results.

https://www.theaustralian.com.au/science/artificial-intelligence-gives-new-hope-for-sufferers-of-severe-heart-problem/news-story/82e5d3be198c466eea85fc675fca709d

https://www.9news.com.au/national/how-ai-is-helping-with-life-threatening-heart-diagnoses/c5f84633-bb29-48c3-b57c-308aa4f3fc51

EIQ results update.pdf

Interesting research results, especially the gender bias in diagnosis (no idea how that can happen). Further confirmation that their software is doing what it is meant to. Next step is a commercial agreement.

Disc: held IRL & SM

Further good results from second clinical trial with some comments in the announcement that suggests a marketing approach. Incorrect/inaccurate diagnosis leading to malpractice suits and an increase in recipients for device manufacturers. Trial was funded by one such company. Now to get the adoption and revenue going.

Echo IQ’s EchoSolv AI technology identified 72% more patients with severe aortic stenosis than human diagnosis alone

• Trial revealed that women were 66% less likely to have been accurately diagnosed than men using human-only assessment: EchoSolvTM resolves this discrimination

• Study was funded by Edwards Lifesciences (NYSE:EW)(Edwards Lifesciences Corp. engages in patient-focused medical innovations for heart disease and critical care monitoring. Its products are categorized into four main areas: Transcatheter Aortic Valve Replacement, Transcatheter Mitral and Tricuspid Therapies, Surgical Structural Heart, and Critical Care)

• Clinical trials now completed at St. Vincent’s Hospitals and Beth Israel Deaconess Medical Center (USA) with more than 40,000 echocardiograms reviewed

• Trial results support rapid commercial deployment of EchoSolvTM in multiple sites and markets

In the United States, diagnostic errors affect an estimated 12 million adults each year. Furthermore, we know that 1 in 3 medical malpractice cases resulting in death or permanent disability are due to inaccurate or delayed diagnosis. EchoSolvTM has clearly demonstrated how valuable it can be in clinical practice and we are pleased to see a number of facilities in Australia and the US evaluating our technology.

Device manufacturers, such as replacement valve manufacturers, could potentially see an increase in suitable recipients for their proven therapies.

We look forward to sharing more news in the weeks ahead as Echo IQ starts to capitalise on these exciting results.”

Trading Halt! The trading halt is requested pending an announcement by the Company in relation to the Australian Clinical Study Results - could be further reinforcement this tech is good (hopefully). Still no word on contracts in the US for commercialisation. Waiting and holding IRL and on Strawman

Trading halt is requested pending an announcement by the Company in relation to the Australian Clinical Study Results. SP has made a recovery in recent days so investors are assuming it will be positive.

Podcast from last year gives a good overview of the company and where it is headed. 2 main take aways for me are the processing of existing Echocardiograms does not require FDA approval so some revenue to come this year as mentioned in the 4C today and in discussion with heart valve manufacturers who obviously have an interest in identifying more patients to treat. FDA approval projected Q3 23 will allow the identification of patients outside current guidelines which is where their product has an edge.

”The Company completed a capital raising of $3.5m during the quarter. This, coupled with careful management of the Company cost-base resulted in Echo IQ finishing the quarter in a strong financial position, and able to deliver against its strategic priorities, with $3.536m cash on hand. In the next 6 months, the Company expects its financial position to be positively impacted by the commencement of commercial revenues from EchoSolvTM as well as Research and Development grants and the exercising of up to $3 million in $0.08 options expiring at the end of June 2023.”

”Echo IQ is moving ever-closer to the commercial introduction of its solution for retrospective and real-time identification of guideline-defined severe aortic stenosis and steady progress being made towards FDA certification of its ai-backed phenotype solution, expected Q3 2023.”

Disc: have taken a position in SM and a small position in RL.

Ultromics are in the same field received $33M in series B funding in 2021. Spun out of the University of Oxford and built-in partnership with the U.K.'s National Health Service (NHS). They already have partnerships with Mayo Clinic, Janssen, Microsoft Azure and the American society of echocardiography. FDA and CE Mark. Need to read more of the research to see where Echo IQ is going to have enough advantage to catch up in US / Euro market.

Ultromics receives FDA Clearance for its Breakthrough Device EchoGo® Heart Failure: An AI-based platform that enables precision detection of heart failure with preserved ejection fraction.

EIQ St V's research Dec 2022.pdf

Kicking another goal with the research. Confirming their technology further. Sets themselves up for commercialization outside of the US too. Let's see what the next step is.

Nessy

held

Well, it seems the AI tech in this one is fast approaching commercialization (or making EIQ a takeover target). The heart valve scanning they do is picking up a much larger group of aortic stenosis patients than is currently being picked up. The importance of this is that AS is deadly and early treatment is more than just a gold standard. This is not a reversible disease by my understanding so early detection is really important. The attachment is an easy read and has good statistics (patient numbers in the study are over 30k to pretty solid).

EIQ research update Dec 1.pdf

Nessy

disc: held

EIQ trading halt 29 Nov.pdf

Trading halt pending release of US clinical study results. Could be very interesting.

EIQ quarterly Oct 2022.pdf

Interesting quarterly. Cap raise and cash at bank will get them through 2023. Hitting pretty good milestones in the US after presenting at the cardiac conference mentioned in a previous straw. I like the following points.

In a further sign of US traction, Echo IQ was recently selected for inclusion in the coveted 2022 HeartX Accelerator, a cardiovascular-focused healthcare accelerator that helps to fast-track deployment of new cardiovascular innovations. This program is powered by HealthTech Arkansas and MedAxiom and selects only 5 accomplished, early-stage companies to take part each year from several hundred that apply. 

Appointment of Echo IQ USA President Donald Fowler - seems a guy with good credentials including 26 years at Siemens.

The Company is pleased to advise that, in line with guidance provided in the last quarterly update, it has been granted certification in both HIPAA SOC2 compliance - big things for the US market.

Still a speculative health tech company at this stage with a potential big market. When/if it shows further promise likely to be snapped up by a big health care company. I have some knowledge of this area and am happy with a small "bet" on it.

Disc: held IRL and on strawman

EIQ presentation Europe.pdf

These guys have just presented at a top level cardiac conference in Europe. Their AI seems to be gaining traction. They have some cash in the bank to keep them going. This is not what you would call a viable business at this stage but has very good potential and is most likely a takeover target by a big health company. Being in the health field myself it seems to have a good asymmetric upside for those willing.

Disc: held IRL and on Strawman

EIQ investor preso.pdf

Interesting to follow the progression to FDA clearance in the US. Cardiac problems are a massive market in the US. This AI seems to be starting to stack up well. Early stages yet but very interesting.

HWH could be an interesting company to keep an eye on and has gained some interest recently.  Small cap of 64M and only has 980k earnings but increasing at a reasonable rate.  3.8M cash at hand but burned 3M last year so may need to raise capital at some stage soon.  

AI is always difficult to assess. From what I can read they have a variety of components of their business. Intelfuze takes data from multiple sources as well as human input to predict any outcome.  Was originally developed for use in military intelligence and still have a contract in place for this it seems.  Appraise, Mailout and Elvis platforms help prevent health insurance fraud (working with HCF currently). Their software is also being used in the fintech environment to help enable lenders assess potential clients with a high degree of success. Have just purchased Echo IQ which is possibly the most exciting opportunity.  This AI review of echocardiograms can help with the earlier diagnosis of aortic stenosis (a fairly large problem in the community) which can lead to early treatment and reversing of the condition.  They have been fully funded by Edwards Lifesciences, a US$74B health care company in the US, for a clinical trial of the platform and will advance to FDA approval after.  Obviously a potentially massive market for them. Working in the health industry I can see this being potentially a large opportunity and that seems to be showing in the share price right now.

Management looks strong with reasonable skin in the game and plenty of performance options available.  Izzy Whitelock as CEO has solid experience in AI but is still young enough to be sharp, and is backed up by Andrew Grover and Stephen Formica who both have many years of experience growing businesses.

As for valuation, that is where I struggle and would be happy to accept opinions.  In its current form it is probably over valued (may reach break even in 3 years if it sustains 45% yoy growth), however if its study in to aortic stenosis is positive and approved by FDA it could be headed for exponential growth or a takeover target.