Announcement PDF ASX Announcement – 31 July 2024 QUARTERLY ACTIVITIES & CASHFLOW REPORT Highlights • • • • • • Record receipts from customers of $3.77M - up 228% or $2.62M from the March quarter of $1.15M, and up 226% or $2.62M from pcp FY23 of $1.16M Net positive cashflows from operating activities of $2.04M, and net positive cashflows of $1.39M for the full year Major clinical trial announced in Aug 2023 progressing to schedule with patient recruitment nearing completion Acquisition of TrialsWest completed and integration well underway, with current trading performance of TrialsWest above expectations Opening of second trial site for TrialsWest expected in Q1FY25 Cash at bank increased to $6.85M at the end of the quarter Resonance Health Ltd (ASX: RHT) (Resonance Health or Company) is pleased to release its Appendix 4C and Quarterly Activities & Cashflow Report for the quarter ended 30 June 2024. Major Milestones The Company continues to rapidly and profitably scale up its operations with the achievement of several major milestones during the quarter. In particular, the Company’s wholly owned clinical research organisation (CRO) business, CRO Services Pty Ltd, is nearing completion of patient recruitment for the major clinical trial announced in August 2023 (Clinical Trial). Resonance Health achieved ongoing growth in analysis volumes in its Software-as-a-MedicalDevice (SaMD) business and completed the acquisition of TrialsWest Pty Ltd (TrialsWest) in the June quarter. The Company’s CRO business, which is serving as CRO and local sponsor for a major global pharma company’s Clinical Trial (see ASX release dated 18 Aug 2023), has progressed the Clinical Trial with patient recruitment nearing completion in July. This is an important milestone in the Clinical Trial and highlights the commitment by Resonance Health’s highly credentialed team. $2.17M in payments related to the Clinical Trial were receipted during the quarter. To the end of June 2024, the Company had invoiced $3.84M in milestone payments with the remainder of the total Clinical Trial contract value of $6.33M to be invoiced in future periods. Resonance Health continues discussions with the international sponsor pharma company about new clinical trials. The Company’s global SaMD business continued to grow with analysis volumes trending upwards during the quarter along with a number of new customer sites being setup globally to use Resonance Health’s SaMD products. Development of the Company’s new Non-Invasive MRI Liver Fibrosis SaMD product is progressing well through its Extended-Proof-of-Concept Trial (EPOC). The global market for this new SaMD product is potentially significant and conversations have now commenced with several of the Company’s global pharma Resonance Health Ltd ABN: 96 006 762 492 141 Burswood Road, Burswood, WA 6100, AUSTRALIA Postal: PO Box 71, Burswood, WA 6100, AUSTRALIA www.resonancehealth.com T + 61 8 9286 5300 info@resonancehealth.com customers about the new SaMD product being used by them for ‘investigational use’ upon completion of the EPOC. Completion of the TrialsWest acquisition was another major milestone during the quarter. TrialsWest is one of Australia’s most experienced and successful clinical research centres. Notably, its performance in the last quarter of FY24 was well above expectations. The Company expects to open a second TrialsWest site in Perth in Q1FY25. The TrialsWest expansion is a key 3rd plank driving Resonance Health’s growth with both organic and acquisitive expansion expected in future periods. Financial & Operating Performance Continued strong demand in diagnostics, clinical trials, and milestone payments from the Clinical Trial being run by the Company’s CRO business contributed to receipts of $3.77M for the quarter, an increase of 226% compared to the FY23 pcp of $1.16M. Total Receipts for the FY24 full year were $8.11M (unaudited) up 87% compared to full year FY23 receipts of $4.33M. The Company’s balance sheet remains strong with a cash balance of $6.85M at the end of quarter, bolstered by strong trading and the receipt of the R&D tax incentive rebate (see ASX release dated 7 June 2024). The Company has a $3.2M senior debt facility with NAB that was established to partially finance the TrialsWest acquisition. There is currently $3.17M outstanding under the facility. With respect to item 6 of the Appendix 4C cash flow report for the quarter, payments to related parties of approximately $111K were made during the quarter. This comprised of $50K paid to Mr Mitchell Wells for consulting and company secretarial services provided during the quarter and partially for the March 2024 quarter. Remuneration of $61.1k was paid to non-executive directors for their service. This announcement has been authorised for release in accordance with the delegated authority of the Board of Directors of Resonance Health Ltd. For further information please contact: Andrew Harrison – Chief Executive Officer E: andrewh@resonancehealth.com P: +61 (0)8 9286 5300 About Resonance Health Resonance Health is an Australian healthcare technology and services company. The Company’s services are used globally by clinicians in the management of human diseases and by pharmaceutical and therapeutic companies in their clinical trials. Resonance Health has gained endorsement by leading physicians worldwide for providing high quality quantitative assessments essential in managing diseases and drug development. Resonance Health’s dedication to scientific rigour and quality has enabled it to achieve regulatory clearances for a range of Software-as-Medical Devices (SaMDs) in the USA, Europe, UK, and Australia, and to proudly carry ISO 13485 certification for the design and manufacture of medical devices. Regulatory cleared SaMD products, some of which incorporate Artificial Intelligence (AI), include: § FerriScan®, a core-lab product that provides an accurate assessment of liver iron concentration (LIC) through non-invasive MRI-based technology, for use in the assessment of individuals with iron overload conditions. Internationally recognised as the gold standard in LIC assessment. § FerriSmart®, an AI-trained, non-invasive MRI-based device for the automated real-time assessment of LIC in patients, calibrated against the global gold standard, FerriScan®. Page 2 § HepaFatScan®, an MRI-based solution which provides a reliable non-invasive assessment of liver-fat in liver tissue for use in the assessment of individuals with confirmed or suspected fatty-liver-disease. § HepaFatSmart ®, an AI-trained, non-invasive device for the automated real-time multi-metric assessment of liver-fat in patients, for the assessment of individuals with confirmed or suspected fatty liver disease. § LiverSmart®, an AI-trained, non-invasive MRI-based multi-parametric device combining FerriSmart® and HepaFat-AI® into a consolidated report providing accurate assessment of LIC and liver fat. § CardiacT2*, the most widely accepted MRI method for assessing heart iron loading. Resonance Health offers a dual analysis of FerriScan® and CardiacT2*. CardiacT2* is TGA and CE Marking regulatory cleared. The Company has a development pipeline of additional medical imaging analysis products and services, including the MRI Liver Fibrosis Project, aimed at accurately assessing the presence and progression of liver fibrosis utilising non-invasive MRI analysis. The Company also has a clinical-trial-sites business which includes site management operations after the completion of the acquisition of TrialsWest Pty Ltd on 31 May 2024. Stakeholders, including clinicians, patients, and shareholders, are encouraged to register their interest at www.resonancehealth.com and to follow Resonance Health on Facebook, LinkedIn, and Twitter. Page 3 Rule 4.7B Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B Name of entity Resonance Health Limited ABN Quarter ended (“current quarter”) 96 006 762 492 30 June 2024 Consolidated statement of cash flows Current quarter $A’000 Year to date (12 months) $A’000 3,774 8,110 (264) (854) (263) (906) (959) (3,486) (1,115) (2,502) 72 152 797 873 2,042 1,387 (4,000) (4,000) (9) (229) (42) (149) 1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) research and development (b) product manufacturing and operating costs (c) advertising and marketing (d) leased assets (e) staff costs (f) administration and corporate costs 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 1.7 Government grants and tax incentives 1.8 Other (provide details if material) 1.9 Net cash from / (used in) operating activities 2. Cash flows from investing activities 2.1 Payments to acquire or for: (a) entities (b) businesses (c) property, plant and equipment (d) investments (e) intellectual property (f) other non-current assets ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms. Page 1 Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B Consolidated statement of cash flows 2.2 Current quarter $A’000 Year to date (12 months) $A’000 436 436 (3,615) (3,942) 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 (Cash acquired from acquisition of Trialswest) 2.6 Net cash from / (used in) investing activities 3. Cash flows from financing activities 3.1 Proceeds from issues of equity securities (excluding convertible debt securities) 3.2 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 3,200 3,200 3.6 Repayment of borrowings (27) (27) 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other: - Lease payments (15) (128) - Net payments for cash backed guarantees (16) (36) 3,142 3,009 3.10 Net cash from / (used in) financing activities ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms. Page 2 Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B Consolidated statement of cash flows 4. Net increase / (decrease) in cash and cash equivalents for the period 4.1 Cash and cash equivalents at beginning of period Current quarter $A’000 Year to date (12 months) $A’000 5,324 6,362 4.2 Net cash from / (used in) operating activities (item 1.9 above) 2,042 1,387 4.3 Net cash from / (used in) investing activities (item 2.6 above) (3,616) (3,942) 4.4 Net cash from / (used in) financing activities (item 3.10 above) 3,142 3,009 4.5 Effect of movement in exchange rates on cash held (38) 38 4.6 Cash and cash equivalents at end of period 6,854 6,854 5. Reconciliation of cash and cash equivalents Current quarter $A’000 Previous quarter $A’000 at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts 5.1 Bank balances 3,403 938 5.2 Call deposits 3,450 4,386 5.3 Bank overdrafts 5.4 Other (provide details) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above) 6,854 5,324 6. Payments to related parties of the entity and their associates 6.1 Aggregate amount of payments to related parties and their associates included in item 1 6.2 Aggregate amount of payments to related parties and their associates included in item 2 Current quarter $A'000 111 Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments. ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms. Page 3 Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B 7. Financing facilities Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 3,173 3,173 3,173 3,173 7.1 Loan facilities 7.2 Credit standby arrangements 7.3 Other (please specify) 7.4 Total financing facilities 7.5 Unused financing facilities available at quarter end 7.6 Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well. NIL Secured Financing Facility from National Australia Bank, facility expiry date is 31 March 2027. Interest rate is BBSY + 2.5% per annum. 8. Estimated cash available for future operating activities $A’000 8.1 Net cash from / (used in) operating activities (item 1.9) 2,042 8.2 Cash and cash equivalents at quarter end (item 4.6) 6,854 8.3 Unused finance facilities available at quarter end (item 7.5) 8.4 Total available funding (item 8.2 + item 8.3) 8.5 Estimated quarters of funding available (item 8.4 divided by item 8.1) 6,854 N/A Note: if the entity has reported positive net operating cash flows in item 1.9, answer item 8.5 as “N/A”. Otherwise, a figure for the estimated quarters of funding available must be included in item 8.5. 8.6 If item 8.5 is less than 2 quarters, please provide answers to the following questions: 8.6.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not? Answer: N/A 8.6.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful? Answer: N/A 8.6.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis? Answer: N/A Note: where item 8.5 is less than 2 quarters, all of questions 8.6.1, 8.6.2 and 8.6.3 above must be answered. ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms. Page 4 Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B Compliance statement 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A. 2 This statement gives a true and fair view of the matters disclosed. Date: 31 July 2024 Authorised by: By the Board of Directors of Resonance Health Limited Notes 1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so. 2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report. 3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity. 4. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [name of board committee – eg Audit and Risk Committee]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”. 5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively. ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms. Page 5