Announcement PDF ImpediMed Limited 1/50 Parker Court Pinkenba, QLD, 4008 Australia E: investorrelations@impedimed.com W : impedimed.com 31 January 2025 Companies Announcements Office Australian Securities Exchange Quarterly Activity and Cash Flow Report Key Highlights for the Second Quarter • Record revenue of A$3.3m (vs A$2.7 million in Q1 FY25) • Record cash receipts of A$3.4m (vs A$2.7 million in Q1 FY25) • Net operating cash outflows of A$2.5 million for the quarter (vs. A$4.8 million in Q1 FY25) • Cash balance of A$17.7 million • Annual Recurring Revenue of A$12.5 million (vs. A$11.6 million in Q1 FY25) • SOZO Core Business TCV of A$3.2 million (vs. A$4.8 million in Q1 FY25) • Reimbursed covered lives increased to 258.5 million up from 146.6 million reported in Q1 FY25, with continued growth in payor coverage • 25 states now above 80% reimbursed coverage up from 16 reported in Q1 FY25 • Lead pipeline continues to grow, +112% YOY to 622 units ImpediMed Limited (ASX:IPD) (ImpediMed or the Company) announces the release of the Quarterly Activities Report and Appendix 4C Cash Flow Report for the quarter ending 31 December 2024 (Q2 FY25). Senior management changes Andrew Grant completed his six-month appointment as VP of Product Development and Customer Solutions and was reappointed to the Board of Impedimed as a Non-Executive Director. Reimbursement Reimbursement coverage continues to improve with Payor coverage increasing to 75% of the population or 258.5 million covered lives, up from 146.6 million covered lives reported in Q1 FY25. 25 States are now above 80% coverage, up from 16 States reported in Q1 FY25. 11 of the top 15 payors now reimburse patients for SOZO lymphoedema measurements, including 4 of the top 5. Page | 1 Key sales metrics and financial update Implementing the new go-to-market strategy is on track. Increased scheduled media activity and conference attendance continues to drive awareness, lead generation and supports clinical adoption. The opportunity pipeline continues to grow, increasing to 622 units, up 112% over the year. 49 units were sold in the quarter, up 75% vs Q1 FY25. 20 units were sold in the US and 29 SOZO units sold in rest of the world (ROW). Churn remains low at 3%. ImpediMed recorded a record unaudited total revenue of A$3.3 million for the quarter ending 31 December 2025 compared with A$2.7 million for the preceding quarter ending 30 September 2024 (Q1 FY25). The increase reflected distributor inventory restocking which is reported as ROW sales, and a weakening of the AUD vs USD, both reversals of the experience in the previous quarter. The Core Business Total Contracted Value (TCV) signed during the quarter was A$3.2 million, compared with A$4.8 million in Q1 FY25. The reduction reflected two factors. The largest factor was the reduction in the number of units due for renewal compared with the previous quarter, when a very large customer renewed. The second factor was the reduction in the number of new units sold.The Company is encouraged by the quality of accounts initiated or renewed in the quarter, together with continued strong price increases on renewals, averaging 23% in the quarter. The additional TCV signed in the quarter grew the Core Business Annual Recurring Revenue (ARR) to A$12.5 million for the 12 months to 31 December 2025. This compares with an ARR at the end of Q1 FY25 of $11.6 million. Summary of cash receipts and outflows During Q2 FY25 the Company had net cash outflows from operating activities of A$2.5 million, which is net of record cash receipts from customers of A$3.4 million. The net cash outflow from operating activities was a reduction from the A$4.8 million recorded in Q1 FY25, reflecting the positive impact from the R&D tax credit received in the quarter and the timing of administration costs recognised in the previous quarter. After adjusting for the R&D tax credit, net operating cash outflows of A$3.4 million was in line with market guidance of A$3.5 million. The majority of the cash outflows for the quarter related to staff costs which totalled A$4.5 million. At September 2025, ImpediMed has a total cash balance of A$17.7 million comprising A$2.2 million cash in bank and A$15.5 million in term deposits. Payments to related parties and their associates during the quarter disclosed in Section 6 of the Appendix 4C totalled A$93,000 and comprised payments to Non-Executive Directors. Approved for release by the Board of ImpediMed Limited. Page | 2 Investor Conference Call Investors are invited to join a conference call hosted by Managing Director and CEO Dr Parmjot Bains and Executive Director and CF&OO McGregor Grant at 11.00am AEDT on Friday 31 January 2025. To pre-register please follow this link https://s1.c-conf.com/diamondpass/10044928oi9u87.html. For more information, contact Dr Parmjot Bains or McGregor Grant on +61 7 3860 3700. Page | 3 About ImpediMed Founded and headquartered in Brisbane, Australia with US and European operations, ImpediMed is a medical technology company that uses bioimpedance spectroscopy (BIS) technology to generate powerful data to maximise patient health. ImpediMed produces the SOZO® Digital Health Platform, which is FDA-cleared, CE-marked, and ARTG-listed for multiple indications, including lymphoedema, heart failure, and protein calorie malnutrition and sold in select markets globally. In March 2024, the NCCN Clinical Practice Guidelines In Oncology (NCCN Guidelines®) for Survivorship continue to reference bioimpedance spectroscopy as the recommended objective tool to screen at-risk cancer patients for early signs of lymphoedema. With the SOZO Digital Health Platform and L-Dex®, ImpediMed is the only company to offer FDA-cleared technology that uses bioimpedance spectroscopy for the clinical assessment of lymphoedema. The connected digital health platform and large, attractive cancer-related lymphoedema market present an opportunity for continued strong growth through ImpediMed’s SaaS subscription-based business. For more information, visit www.impedimed.com. Forward Looking Statements This announcement contains or may contain forward-looking statements that are based on ImpediMed Limited (ImpediMed) 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. Any forward-looking statements, including projections, guidance on future revenues, earnings and estimates, are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. While management has prepared this information based on its current knowledge and understanding and in good faith, there are risks and uncertainties involved which could cause actual results to differ from projections. You should not place undue reliance on forward-looking statements which speak only as of the date when made. Except as required by law, ImpediMed does not assume any obligation to publicly update or revise any forwardlooking 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 and no representation, warranty or assurance (express or implied) is given or made in relation to any forward-looking statement by any person (including ImpediMed Limited). Page | 4 Rule 4.7B Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B Name of entity ImpediMed Limited ABN Quarter ended (“current quarter”) 65 089 705 144 31 December 2024 Consolidated statement of cash flows Current quarter $A’000 1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for Year to date (6 months) $A’000 3,419 6,137 (a) research and development (78) (166) (b) product manufacturing and operating costs (389) (703) (c) advertising and marketing (117) (418) - - (e) staff costs (4,801) (9,700) (f) (1,637) (3,836) - - 217 496 (d) leased assets 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 915 915 1.8 Other (provide details if material) - - 1.9 Net cash from / (used in) operating activities (2,471) (7,275) 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 - - (144) (591) (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 (6 months) $A’000 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 activities (144) (591) 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 - - 3.6 Repayment of borrowings - - 3.7 Transaction costs related to loans and borrowings - - 3.8 Dividends paid - - 3.9 Other (provide details if material) (115) (222) 3.10 Net cash from / (used in) financing activities (115) (222) Item 3.9: Cash inflows during the period relate to a temporary timing difference in relation to GST on capital raising costs, offset slightly by the recognition of costs under AASB 16 Leases for the Group’s premises leases. 4. Net increase / (decrease) in cash and cash equivalents for the period 4.1 Cash and cash equivalents at beginning of period 4.2 Net cash from / (used in) operating activities (item 1.9 above) ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms. 18,648 24,632 (2,471) (7,275) Page 2 Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B Consolidated statement of cash flows Current quarter $A’000 Year to date (6 months) $A’000 4.3 Net cash from / (used in) investing activities (item 2.6 above) (144) (591) 4.4 Net cash from / (used in) financing activities (item 3.10 above) (115) (222) 4.5 Effect of movement in exchange rates on cash held 1,775 1,149 4.6 Cash and cash equivalents at end of period 17,693 17,693 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 2,235 6,244 5.2 Call deposits 15,458 18,388 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) 17,693 24,632 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 93 6.2 Aggregate amount of payments to related parties and their associates included in item 2 - Current quarter $A'000 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 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. 8. Estimated cash available for future operating activities 8.1 Net cash from / (used in) operating activities (item 1.9) (2,471) 8.2 Cash and cash equivalents at quarter end (item 4.6) 17,693 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) - $A’000 17,693 7.2 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: 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: 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: 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 January 2025 Authorised by: Board of Directors 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