Opyl : Business Update & Appendix 4C

For personal use only

29 July 2022

Opyl Appendix 4C - Quarter (Q2) ending 30 June 2022

Opin delivers: new customers, exceeds patient recruitment outcomes, and hits data targets

Melbourne, Australia - Opyl Limited (ASX:OPL) today released its Appendix 4C quarterly cash flow statement for the three month period ending 30 June 2022 (Q4 FY 2022) and provided an update on its clinical trial recruitment platform, Opin.

Highlights

• Revenue up 3rd year in a row
• Opin signs new biopharma customers
• Opin platform enhanced for better patient and customer experience
• Total available funding at the end of the period of $1.136M

The company has closed off another positive year as revenue has continued to increase for 3rd year in a row largely driven by the evolution of Opin as reported in previous quarter updates.

Opin's outstanding patient recruitment results, expanded services capabilities, and new user features are attracting considerable interest from customers. New global biopharma and medical research institute customers signing to Opin in the past eight weeks, demonstrate maturation of the high value sales pipeline to conversion. Although these new customer contracts are not material individually, these contracts demonstrate validation of Opin's competitive offering and move into to the AUD$4.8bn global clinical trial recruitment market1.

"Opin has significantly exceeded all expectations in patient recruitment performance with 100% of all customer project recruiting either on time or ahead of plan," said Michelle Gallaher Opyl CEO. "We are now seeing an uplift in sales enquiries and conversion to contracts, as the platform continues to evolve. Word of mouth is spreading about our performance reputation."

The new Opin user features make the search and discover experience on the platform easier for study participants to navigate, find information and share as well as access key eligibility information.

The new customer dashboard, Opin Track, ensures research customers can monitor recruitment progress and access information securely and in real time. Opin Track allows us to service a large number of customers concurrently, capturing performance metrics demonstrating Opin's superior recruitment outcomes and the ability to scale the business. Opin's recruitment success continues to grow in neurology and oncology, with new projects in rare diseases, dermatology, ophthalmology, and sleep disorders.

1 Global Clinical Trials Recruitment Market. Roots Analysis June 2021. https://www.rootsanalysis.com/

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The Opin patient database has shown a 790% increase in patient registrations each week since January 2022, and a parallel drop in cost per acquisition per patient (down 196%). The patient database growth is a major advantage in swiftly matching eligible patients to clinical trials and giving customers rapid recruitment.

Trial Key, Opyl's clinical trial prediction and protocol design platform has passed several critical development milestones to plan.

"Trial Key remains a core development priority for Opyl," said Gallaher. "Trial Key works with Opin to provide accurate predictions of recruitment success, helping to forecast customer success."

Opyl is collaborating with RMIT University's School of Computational Sciences in developing Trial Key, accessing financial and data science capabilities under the Innovation Connections Grant.

Financials

Opyl closed Q4 FY 2022 with $786K in cash, with receipts from customers for the quarter of $251K down from $383K in the previous quarter largely due to pre-payment of larger engagements. Full year receipts from customers of $998K up from $710K in FY21.

Opyl has total available funding at the end of the period of $1.136M as a result of securing a R&D forward funding finance facility of $350K from FIFO Capital that has been put in place at a very low cost to the company. This facility may be drawn against however it is not expected to be drawn against.

Net outflows from operating activities of $396K decreased from $99K inflow in Q3 FY 2022 primarily due to the receipt of the R&D refund $361K and a decrease in receipts from customers as outlined above. Full year net outflow from operating activities of $1.518M increased from $635K in the previous year as a result of planned increase in staff costs, costs of sales and investment in product development

In accordance with Listing Rule 4.7C.1, a summary of the net cash operating outflows for the quarter ended 30 June 2022 is as follows:

	$	'000
Research and development	$	126
Advertising and marketing	$	12
Staff Costs	$	331
Administration and corporate costs	$	322

As stated at item 1.2 (e) of the Appendix 4C, staff costs for the quarter of $331K, include $44K for Director Fees, which is in line with expectations.

In reference to item 1.2.(f), administration and corporate costs have increased by $97K. The increase relates to seasonal costs such as periodic compliance costs which include ASX fees, general businesses expenditure, and ongoing accounting and tax support.

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Research and development

During the quarter, the company continued to invest in refining Opin, improving functionality and user experience for both patients and customers. The scheduled refresh was delivered ahead of plan this week.

Trial Key, the company's clinical trial protocol design and prediction platform, development focused on AI and machine learning technologies to automatically link trials between various phases, an identified shortfall of clinical trial databases globally. These links provide a richer dataset and improve Trial Key's accuracy and power, leading to improved clinical trial protocol design. Future development using NLP and deep learning will allow these linkages to improve the Trial Key model accuracy.

In accordance with Listing Rule 4.7B, Opyl advises that it made related party payments of $18K to Advantage Data and $28K to Zappli for ongoing R&D activities related to developing Opin and Trial Key, the company's two clinical trial efficiency platforms. The company continues to leverage the AI and data science expertise of the company's executive director Damon Rasheed.

Opyl CEO, Michelle Gallaher will host an update for shareholders. Pre-registration is required. Details of the webinar are:

Date: Thursday 4 August 2022

Time: 12.15pm Australian Eastern Standard Time

Registration via Webinar Ninja: https://tinyurl.com/yz2ee5wx

The Board has authorised this announcement for release to the ASX

-ENDS-

For media and investor enquiries: [e-mail]

For clinical trial recruitment enquiries: [e-mail]

www.opyl.ai

www.opin.ai

Opyl is a new generation Australian digital health company that applies artificial intelligence to improving clinical trials. Our platforms make clinical trials more efficient and easier to access, giving patients more options and saving medical researchers time and money.

Our key offering for biopharma, medtech, government and healthcare organisations:

• clinical trial recruitment solutions
• clinical trial predictive analytics and protocol design
• deep social media insights and analysis

Follow Opyl on Twitter (@Opylai), LinkedIn and Facebook

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Rule 4.7B

Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

Name of entity

Opyl Limited

ABN	Quarter ended ("current quarter")
71 063 144 865	30 June 2022

Consolidated statement of cash flows	Current quarter	Year to date (12
		$A'000	months)
			$A'000
1.	Cash flows from operating activities
1.1	Receipts from customers	251	998
1.2	Payments for
	(a) research and development	(126)	(382)

1. product manufacturing and operating costs

	(c)	advertising and marketing	(12)	(91)
	(d)	leased assets
	(e)	staff costs (Includes $44k payment for	(331)	(1,321)
		the quarter to directors)
	(f)	administration and corporate costs	(322)	(1,064)
1.3	Dividends received (see note 3)
1.4	Interest received
1.5	Interest and other costs of finance paid
1.6	Income taxes paid	-	(19)
1.7	Government grants and tax incentives	-	361
1.8	Other (provide details if material)
1.9	Net cash from / (used in) operating	(540)	(1,518)
	activities

2.	Cash flows from investing activities
2.1	Payments to acquire:
	(a)	entities
	(b)	businesses
	(c)	property, plant and equipment	-	(10)
	(d)	investments

ASX Listing Rules Appendix 4C (01/12/19)	Page 1
+ See chapter 19 of the ASX Listing Rules for defined terms.

For personal use only

Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows	Current quarter	Year to date (12
	$A'000	months)
		$A'000

1. intellectual property (amount is paid to a related party for in-house software development)

	(f)	other non-current assets
2.2	Proceeds from disposal of:
	(a)	entities
	(b)	businesses
	(c)	property, plant and equipment
	(d)	investments
	(e)	intellectual property
	(f)	other non-current assets
2.3	Cash flows from loans to other entities
2.4	Dividends received (see note 3)
2.5	Other (provide details if material)
2.6	Net cash from / (used in) investing	-	(10)
	activities

3. Cash flows from financing activities

1. Proceeds from issues of equity securities (excluding convertible debt securities)
2. Proceeds from issue of convertible debt securities

3.3 Proceeds from exercise of options

3.4 Transaction costs related to issues of equity securities or convertible debt securities

3.5	Proceeds from borrowings
3.6	Repayment of borrowings
3.7	Transaction costs related to loans and	(2)	(2)
	borrowings

3.8 Dividends paid

3.9 Other (payments for share buyback)

3.10 Net cash from / (used in) financing	(2)	(2)
activities

ASX Listing Rules Appendix 4C (01/12/19)	Page 2
+ See chapter 19 of the ASX Listing Rules for defined terms.