ImpediMed : Appendix 4C & Quarterly Activities Report

ASX:IPD

QUARTERLY ACTIVITIES REPORT

APPENDIX 4C -

Quarter Ended 31 March 2022

28 April 2022

FORWARD-LOOKING STATEMENTS

This announcement contains or may contain forward-looking statements that are based on management's beliefs, assumptions and expectations and on information currently available to management.

All statements that address operating performance, events or developments that we expect or anticipate will occur in the future are forward-looking statements, including without limitation our expectations with respect to our ability to expand sales and market acceptance in the US and Australia including our estimates of potential revenues, costs, profitability and financial performance; our ability to develop and commercialise new products including our ability to obtain reimbursement for our products; our expectations with respect to our clinical trials, including enrolment in or completion of our clinical trials and our associated regulatory submissions and approvals; our expectations with respect to the integrity or capabilities of our intellectual property position.

Management believes that these forward-looking statements are reasonable as and when made. You should not place undue reliance on forward-looking statements because they speak only as of the date when made. ImpediMed does not assume any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. ImpediMed may not actually achieve the plans, projections or expectations disclosed in forward-looking statements. Actual results, developments or events could differ materially from those disclosed in the forward-looking statements.

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FORWARD-LOOKINGSTATEMENTS

THREE KEY MESSAGES

Continued momentum

• • Record quarter for SOZO® Revenue and SOZO SaaS Revenue

• • Quarter still significantly impacted by COVID-19

• • March 2022 saw a strong turnaround in Patient Testing and sales

• • Surpassed 400k Patient Tests, providing real-world data for new applications

• • Growing, high-quality pipeline of sales opportunities

Assembling tools to accelerate growth

• • Reimbursement key

• • PREVENT Trial published February 2022

• • Case Assistance Program continues to deliver outstanding results

• • Growing number of IDN* and MSA** agreements signed

• • SOZO v4.1 software brings compliance module and EHR integration capability

• • SOZO II on track for commercial launch by the end of calendar year 2022

Focused on path to break-even

• • Focused on increasing sales and average monthly license fees

• • Reimbursement and compliance with the LPP* are critical to improved patient and economic outcomes

• • Net Operating Cash Outflows anticipated to decrease with Q4 FY'22 to be below $3.0 million

• • Sufficient cash to reach break-even

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*LPP: Lymphoedema Prevent Program

Q3 FY'22 OVERALL BUSINESS RESULTS

TOTAL REVENUE

$2.5m

SOZO Business

✓ RECORD QUARTER + 28%

YOY

$0.2m

• • SaaS Revenue from Core Business

  Legacy Business

• • SaaS Revenue from Clinical Business (AstraZeneca)

• • New SOZO contracts signed and device revenue

^ YOY denotes Year-over-Year change in metric.

All FY'22 revenue and cash flow numbers are unaudited.

All figures are stated in Australian dollars (AUD) unless otherwise notated.

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$2.7m

TOTAL REVENUE + 18%

YOY^

$42.9m

CASH ON HAND

$2.6m

$(6.5)m

CASH RECEIPTSNET OPER. CASH OUTFLOW

Q3 FY'22 BUSINESS PERFORMANCE

Revenue and SaaS Metrics

SOZO Revenue

• • Significant levels of disruption across the US due to Omicron during the first two months of the quarter

  (Excluding Legacy)

  $2,500,000

• • Record results for Total Revenue, SOZO Revenue and SOZO SaaS Revenue despite these headwinds

• • $2.3m SOZO SaaS Revenue, +29% YOY

• • $7.9m ARRi, of which $6.8m relates to the Core Business, +37% YOY

  $2,000,000

• • $14.6m CRPii, +1%YOY

• • $2.2m in TCViii signed in Q3 FY'22

• • 90%+ SaaS Gross Margins

• • 2% Churn Rate & 97% Renewal Rate

  $1,500,000

• • 17 units sold, primarily to existing US customers; 840+ units now sold overall

  • • Sales to US customers have higher monthly license fees and therefore a larger impact on both ARR and CRP

• • Second AstraZeneca contract extended and expanded:

  $1,000,000

  • • Adding 3 months to duration

  • • Utilises an additional 23 SOZO units

  • • Generates ~$500k in additional revenue in coming quarters

Cash Flow

$500,000

• • $2.6 million in Cash Receipts from Customers

• • In line with the prior Appendix 4C commentary, Q3 FY'22 Net Operating Cash Outflows increased temporarily to $6.5 million

  $-

• • Cash Receipts from Customers to steadily increase in Q4 FY'22

  Q4'17

  Q1'18

  Q2'18

  Q3'18

  Q4'18

  Q1'19

  Q2'19

  Q3'19

  Q4'19

  Q1'20

  Q2'20

  Q3'20

  Q4'20

  Q1'21

  Q2'21

  Q3'21

  Q4'21

  Q1'22

  Q2'22

  Q3'22

• • Net Operating Cash Outflows expected to revert to <$3.0 million in Q4 FY'22

SaaS^Device and Contract Fees

i Annual Recurring Revenue (ARR): The amount of revenue reasonably expected to be booked for the next 12-month period based on existing signed contracts, and assuming installation upon sale.

^The values shown are for SaaS Revenue are across all lines of business, including the Core Business and Clinical Business. The Company began breaking out revenue from the Clinical Business in Q1 FY'21.

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ii Contracted Revenue Pipeline (CRP): Future period revenue amounts related to TCViii that are yet to be reported as recognised revenue.

All FY'22 revenue and cash flow numbers are unaudited.

All figures are stated in Australian dollars (AUD) unless otherwise notated.

iii Total Contract Value (TCV): Total value of customer contracts including one-time and recurring revenue.