HealthBeacon : Annual Report 2020

Financial Statements

Healthbeacon Limited

For the year ended 31 December 2020

Registered number: 530689

Healthbeacon Limited

Company Information

Directors	Conor Hanley
	James Joyce
	Emanuela Saccarola (resigned 8 September 2020)
	Elliott Griffin
	William G McCabe
	John Armstrong
	Kieran Fox
	Declan Magee (resigned 14 August 2020)
	Mary Harney (appointed 8 September 2020)
	Keeshia Muhammad (appointed 8 September 2020)
Company secretary	Kieran Daly
Registered number	530689
Registered office	Unit 20
	Naas Road Business Park
	Muirfield Drive
	Naas Road
	Dublin 12
Independent auditor	Grant Thornton
	Chartered Accountants & Statutory Audit Firm
	City Quay
	Dublin 2
Bankers	Bank of Ireland
	28 Main Street
	Blackrock
	Dublin
Solicitors	Byrne Wallace
	88 Harcourt Street
	Dublin 2

Healthbeacon Limited

Contents

Page

Directors' report	1	- 3
Directors' responsibilities statement		4
Independent auditor's report	5	- 8
Statement of comprehensive income		9
Statement of financial position	10
Statement of changes in equity	11
Notes to the financial statements	12	- 25

Healthbeacon Limited

Directors' report

For the year ended 31 December 2020

The directors present their annual report and the audited financial statements for the year ended 31 December 2020.

Principal activities

The principal activity of the company is innovation in the area of medical adherence.

Business review

Despite the very challenging effects of Covid-19, the financial year ended 31 December 2020 represented a year of progress for the Company. During the year it established 10 new partnerships with global pharmaceutical companies, specialty pharmacy groups and health insurance organisations. These partnerships will facilitate the expansion and diversification of the Company's future revenue stream. The Company made further advancements in its product development, bringing to market its HB Smart 2.5, HB Flexi and HB Companion App. The Company grew its headcount and made a number of significant governance enhancements with Mary Harney and Keeshia Muhammad being appointed to the Board in September 2020. In addition, in November 2020 the Company appointed Laurence Flavin as its CFO.

Results and dividends

The loss for the year, after taxation, amounted to €3,365,832 (2019 - loss €2,596,083).

The directors do not recommend the payment of a dividend.

Directors and their interests

In accordance with Section 329 of the Companies Act 2014, the directors' shareholdings and the movements therein during the year ended 31 December 2020 were as follows:

	Ordinary shares	Preference shares
			of €1 each			of €1 each
	31/12/20	1/1/20	31/12/20	1/1/20
Conor Hanley	10		10		1	-
James Joyce	936		936		-		-
Emanuela Saccarola (resigned 8 September 2020)	-		-		-		-
Elliott Griffin	-		-		-		-
William G McCabe	-		-		1,151	1,071
John Armstrong	15		15		19		-
Kieran Fox	-		-		411	364
Declan Magee (resigned 14 August 2020)	73		73		5		-
Mary Harney (appointed 8 September 2020)	-		-		-		-
Keeshia Muhammad (appointed 8 September 2020)	-		-		-		-
	1,034		1,034		1,587		1,435

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Healthbeacon Limited

Directors' report (continued)

For the year ended 31 December 2020

In addition to the above, Conor Hanley, a director of the company was issued 20 share options at €2,500 on 1 April 2015. These share options vested immediately. Originally the exercise date was 1 January 2020 and during the financial year 2019 it was extended to 1 January 2021. 100 Share options at €1,875 were also issued to Kieran Daly, the secretary of the company, on the same date with the same terms.

William G McCabe has an interest in the company arising from the investment by Oyster Capital Investments Ltd. In accordance with the reporting requirements, shares issued to Oyster Capital Investments Ltd are linked to William G McCabe due to their connection. Kieran Fox also has an indirect interest in the company due to his connection with Quorndon Capital Investments.

Accounting records

The measures taken by the directors to ensure compliance with the requirements of Sections 281 to 285 of the Companies Act 2014 with regard to the keeping of accounting records, are the employment of appropriately qualified accounting personnel and the maintenance of computerised accounting systems. The company's accounting records are maintained at the company's registered office at Unit 20 Naas Road Business Park, Muirfield Drive, Naas Road, Dublin 12.

Research and development activities

The company is involved in the design and development of injectable medication adherence technology and devices. During the year incurred €761,905 (2019: €785,451) in development costs that were capitalised and a further €86,711 (2019: €58,828) of research costs that were expensed.

Going concern

The Company recorded a loss for the financial year of €3,365,832 (2019: €2,596,083). After making enquiries and reviewing the company's forecasts and projections, the directors have reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The Company is projecting to double the revenues in 2021 and is projecting profits from 2022 onwards due to its broadening partnership base that continues to develop. In addition to this, the Company is planning a further fundraise in 2021 which will support the Company's growth projections and provide further support to infrastructure and R&D. The fundraising is expected to be at least €10,000,000. Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements.

Statement on relevant audit information

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:

• so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and
• the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

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