CardieX : 2021Annual Report

Annual Report

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CARDIEX LIMITED

AND CONTROLLED ENTITIES

ABN 81 113 252 234

CORPORATE DIRECTORY

DIRECTORS

Mr. Niall Cairns (Executive Chairman)

Mr. King Nelson

Mr. Craig Cooper (Chief Executive Officer)

Mr Jarrod White

JOINT COMPANY SECRETARIES

Mr. Jarrod White

Mr. Philip Leighfield (resigned 17 June 2021)

Mr Nicholas Marshall (appointed 17 June 2021)

CHIEF FINANCIAL OFFICER

Mr. Jarrod White

REGISTERED OFFICE AND PRINCIPAL PLACE OF BUSINESS

Suite 303, Level 3

15 Lime Street

Sydney NSW 2000

Telephone: [phone]

Email: [e-mail]

Website:www.CardieX.com

SHARE REGISTRY

Link Market Services

Level 12, 680 George Street

Sydney NSW 2000

Telephone: [phone]

Website:www.linkmarketservices.com

AUDITOR

BDO Audit Pty Ltd

Level 11, 1 Margaret Street

Sydney NSW 2000

Telephone: [phone]

Facsimile: [phone]

Website:www.bdo.com.au

CORPORATE ACCOUNTANT

Traverse Accountants

Suite 305, Level 3

35 Lime Street

Sydney NSW 2000

Website:www.traverseaccountants.com.au

STOCK EXCHANGE LISTING

CardieX Limited's shares are listed on the Australian Securities Exchange (ASX code: CDX).

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TABLE OF CONTENTS

Chairman's Report	Page	3
CEO's Report and Overview of Operations	Page	4
Directors' Report	Page	9
Remuneration Report	Page	14
Auditor's Independence Declaration	Page	19
Consolidated Statement of Profit or Loss and Other Comprehensive Income	Page	20
Consolidated Statement of Financial Position	Page	21
Consolidated Statement of Changes in Equity	Page	23
Consolidated Statement of Cash Flows	Page	24
Notes to the Consolidated Financial Statements	Page	25
Directors' Declaration	Page	66
Independent Auditor's Report	Page	67
Shareholder Information	Page	70

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CARDIEX LIMITED

AND CONTROLLED ENTITIES

ABN 81 113 252 234

Chairman's Report

My Fellow Shareholders,

It is my pleasure to present the 2021 Annual Report for CardieX Limited.

The past year has been one of significant development as we continue to execute on our strategic plan for the Company.

Our ATCOR division delivered >30% sales growth, in constant currency and that growth is continuing into the FY22 year. Our current expectation is that ATCOR will be profitable by the end of FY22.

Our new CONNEQT division is also on track to launch several new devices and digital solutions in FY22 targeting multi-billion-dollar global healthcare markets. More details are provided in the "CEO Overview of Operations" below.

During the financial year shareholders continued to support the Company with both the August 2020 $2.5m capital raising and the December 2020 SPP, which was oversubscribed by 230%, raising an additional $3.2m. At year end we had a satisfactory level of cash reserves and, following positive discussions with the Company's largest option holders, we are confident that the upcoming November 2021 options will be strongly supported as the exercise date draws closer. In addition, all directors have advised that they will be exercising their options entitlements, to the fullest extent possible, which includes CardieX's largest share and option holder C2 Ventures Pty Limited, (jointly owned by CEO Craig Cooper and myself). On the basis of a strong option take-up, CardieX is well capitalised for its upcoming product launches.

I have great confidence for the year ahead as we continue to drive value for all our shareholders, and I would like to personally thank you for your ongoing support.

My best regards,

Niall Cairns

Executive Chairman

CardieX Limited

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CARDIEX LIMITED

AND CONTROLLED ENTITIES

ABN 81 113 252 234

Chief Executive Officer's Report & Overview of Operations

My Fellow Shareholders,

This last year has continued our transition from a pure medical device business to a multi-platform developer of consumer and medical devices & software/SaaS based healthcare solutions.

Going into this next year I couldn't be more excited and energized about our new product development and the impact we are poised to make on global health outcomes. More detail is provided in my "CEO Overview of Operations" below.

I would like to thank my fellow Board members and management and staff at CardieX who have worked tirelessly to realise our vision as we continue to grow shareholder value.

My best regards,

Craig Cooper

CEO & Managing Director

CardieX Limited

CEO Overview of Operations

During FY21, CardieX operated sales, development, and marketing activities in 6 key market sectors:

1. The sale and marketing of XCEL and Oscar 2 medical devices for the management and diagnosis of cardiovascular disease, hypertension, and other vascular health disorders ($US2.5b mkt size: 2025);
2. The provision of clinical trial services to research and pharmaceutical companies and institutions;
3. Development of consumer & medical wearable technologies ($US37.6b mkt size: 2025);
4. Technology licensing;
5. Digital health including telehealth, SaaS, and clinician and consumer digital solutions ($US509b mkt size: 2025); and
6. The development of home vital signs monitors incorporating the company's patented & FDA-cleared SphygmoCor® technology.

All of CardieX's products and product development activity are founded in our core arterial waveform technology - known globally as "SphygmoCor®". Our SphygmoCor® technology currently has more than 4,500 installations worldwide and is used by leading research and pharmaceutical companies, such as Bayer, AstraZeneca, GSK as well as other leading healthcare institutions. CardieX is the only company that has FDA clearance for measuring central blood pressure, arterial stiffness, and other proprietary cardiovascular and arterial health parameters non- invasively in all adult subjects.

Towards the end of FY21, we underwent a significant corporate restructure. CardieX subsidiary ATCOR Medical, Inc was renamed simply "ATCOR" and we launched a new consumer focused brand called "CONNEQT".

ATCOR continues to focus on vital signs monitors and SaaS solutions for hospital, research & pharma, and specialist clinician markets while our new consumer brand, CONNEQT has been created to focus on home health devices, wearables, and consumer and medical health apps.

Under the CONNEQT brand, the Company is on track to launch multiple new products and devices in FY22. One of these products is the CONNEQT "Pulse" - a world-first dual blood pressure monitor, which will also be the first consumer vital signs monitor to include central blood pressure and ATCOR's patented SphygmoCor® technology The other major product targeted for release in FY22 is the CONNEQT Band wearable - which will include a full suite of patented health parameters as well as a comprehensive ecosystem of unique health and wellness features focused on heart health. We also continue to target a Q2FY2022 release of our smartwatch developed in partnership with Mobvoi.

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