Echo IQ : Half Year Accounts 31 December 2021

For personal use only

Echo IQ Limited

And Controlled Entities

(formerly Houston We Have Limited)

ABN: 48 142 901 353

CONSOLIDATED INTERIM FINANCIAL REPORT For the Half Year Ended 31 December 2021

For personal use only

Contents

Corporate Directory	2
Directors' Report	3
Auditor's Independence Declaration	6
Consolidated Statement of Profit or Loss and Other Comprehensive Income	7
Consolidated Statement of Financial Position	8
Consolidated Statement of Changes in Equity	9
Consolidated Statement of Cash Flows	10
Notes to the Financial Statements	11
Directors' Declaration	24
Independent Auditor's Review Report	25

Echo IQ Limited and Controlled Entities

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Corporate Directory

Directors
Andrew Grover	Executive Chairman
Steven Formica	Non-Executive Director
Steve Picton	Non-Executive Director
Company Secretary
Jessamyn Lyons

Business Office

Suite 404, 309 George Street

Sydney NSW 2000

Telephone: [phone]

Registered Office

Level 3, 35 Outram Street

West Perth WA 6005

Website & Email [e-mail]

Share Registry

Computershare Investor Services Pty Ltd

Level 11, 172 St Georges Terrace

Perth WA 6000

Telephone: [phone]

Facsimile: [phone]

Email:[e-mail]

Auditors

KPMG

Level 11, Corporate Centre One

Cnr Bundall Road and Slater Avenue

Bundall QLD 4217

Securities Exchange

Australian Securities Exchange [ASX: EIQ]

Echo IQ Limited and Controlled Entities

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Directors' Report

The Directors present the financial report of the Consolidated Entity for the six months ended 31 December 2021, together with review report thereon. The Consolidated Entity consists of Echo IQ Limited (the Company) and the entities it controlled at period end or from time to time during the financial period.

Directors

The names of Directors who held office during or since the end of the period:

Andrew Grover

Executive Chairman

Andrew has 25 years' experience in management, business development, sales & marketing, administration and technology across a diverse range of industries. As a founder and investor in numerous innovative companies, Andrew's businesses have been featured in BRW Fast 100 and Deloitte's Fast 50 over several years. Andrew has had several successful exits and has consulted to medium and top 100 companies. Andrew was also CEO of an executive recruitment agency which was acquired by an ASX listed company.

Andrew has served as a Director since 24 May 2019.

Andrew has no former or other current ASX listed directorships.

Steven Formica

Non-Executive Director

Steven brings to the Group practical management and business development experience. He has been a successful businessman and operations manager for over 30 years in several privately held business ventures including manufacturing, construction, landscape contracting, property development and integrated wholesale and retail businesses. More recently he has been a successful investor and non- executive director in mineral resource companies.

Steve has served as a Director since 2 July 2018.

Steve is currently Chairman of Ragnar Metals Ltd. In the past 3 years, he has been a director of Jade Gas Holdings Limited (formerly High Grade Metals Limited), Bowen Coal Limited, Lindian Resources Limited and Orminex Limited.

Steve Picton

Non-Executive Director (appointed 20 October 2021)

Steve holds a Bachelor of Science in technology and a Master of Science (Business) from London Business School and is both a Chartered Engineer and a Member of The Institute of Company Directors. He is also a Sloan Fellow which was awarded to him in 1993 by the Sloan Foundation as part of the joint MIT, Stanford and LBS programme. He has over 25 years' experience in the technology industry having held senior positions in British Telecom (BT) and AAPT prior to him forming gotalk and relaunching LBNCo.

Elizabeth Whitelock

Managing Director and Chief Executive Officer (resigned 22 October 2021)

Elizabeth was a co-founder of Houston We Have Software Pty Ltd and was the Group's CEO. Elizabeth started her career in the UK working for the Metropolitan Police Force and has over 25 years' experience in senior management and CEO roles. Elizabeth has worked with organization such as IBM, Information Builders, SAS, Ingres and Microstrategy. These roles shared a focus on Information Management Products and Services and have highlighted her strengths in strategic communications, sales, marketing partner programs while cementing customer relationships.

Elizabeth served as a Director from 8 September 2016 to 22 October 2021.

Elizabeth has no former or other current ASX listed directorships.

Company Secretary

Jessamyn Lyons has held office as the Company Secretary since her appointment on 22 October 2021 and since the end of the period. Lisa Wynne held office until her resignation on 22 October 2021.

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Directors' Report

Review of Results and Operations

Results Overview

The Group reported a loss for the half year ended 31 December 2021 of $3,533,027 (31 December 2020: loss of $1,117,302).

Included in the loss for the half year were non-cash Share Based Payments expenses of $2,018,853, for options issued (as outlined in detail in notes 12 and 13 to the financial statements).

Operating revenue for the half year totalled $452,679 and operating expenses (excluding Share Based Payments expense) totalled $2,005,853.

Key Business Activities

Subsequent to the acquisition of Echo IQ Global Pty Ltd in June 2021, the Group has undertaken a strategic restructure to focus on Medical Technology and using its artificial intelligence capability to transform the diagnosis of structural heart diseases, starting with aortic stenosis.

The first half of the financial year saw the following key activities undertaken:

• Commencement of maiden clinical studies of Echo IQ technology at St Vincents' hospitals in Sydney and Melbourne, fully funded by Edwards LifeSciences (NYSE: EW);
• A change in company name to Echo IQ from Houston We Have, reflecting the change in primary focus;
• Investment to extend agreement with National Echo Database of Australia (NEDA) for exclusive commercial access to new and additional cardiac health data; and
• Expansion of the leadership team to include internationally experienced Medical Technology professionals in regulatory affairs and commercial development.

In addition to the above, the Group continued its services to the Health Insurance sector, and there continues to be opportunities to bring proprietary software to the Prometheus client base in a complementary and value-adding manner. The Group also continued its contract with the Australian Department of Defence.

Financial Position and Cash Flow

The net assets of the Group as at 31 December 2021 totalled $8,481,428 compared with $9,835,602 at 30 June 2021.

The net cash outflow for the Group for the half totalled $1,293,287 (31 December 2020: net cash outflow of $701,840).

Cash outflows from operations totalled $1,114,349 compared with outflows $691,282 for 31 December 2020.

The total of investing cash outflows for the period totalled $338,938. There were no investing cashflows for the half year to 31 December 2020.

Net cash inflows from financing activities for the half year to 31 December 2021 were $160,000, received upon the exercise of options. For the prior comparative period, net cash outflows from financing activities totalled $10,558, which was solely from the repayment of lease liabilities.

Dividends

No dividends were paid during the period and no recommendation is made as to payment of dividends.

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