Analytica Quarterly Cashflow Report for Quarter Ended 31st December 2016

29th January 2016, ASX Announcement

Analytica Ltd (ASX: ALT) manufacturer of the PeriCoach® System, today released its Appendix 4C – Quarterly Cashflow report for the quarter ended 31st December 2016.

Receipts from sales of PeriCoach in Analytica’s key markets of Australia, the UK and the US totalled $47,000 while marketing and sales expenditure for the quarter totalled $714,000. During the quarter, Analytica developed distribution agreements with partners in the UK. One of these partners is the number one supplier of pelvic health devices to consumers in that market. By the June quarter 2016, Analytica also expects to have identified and completed distribution agreements with a number of distribution partners in the Australian market. These agreements could be important in assisting the growth of PeriCoach sales in the future as the company seeks to partner PeriCoach with a major multi-national corporation.

R&D expenditure was $424,000 for the quarter. The release of PeriCoach in the USA, UK and Australia provided Analytica with an important opportunity to engage with specialist pelvic floor clinicians in those countries. These relationships combined with the deep experience of the company’s clinical advisory boards has enabled Analytica to publish papers and testimonials and importantly its has assisted in the on going development of PeriCoach. The company has continued to exhibit PeriCoach at major international urology and gynecology conferences and continues to receive very positive feedback.

Analysis of the significant amount of data being collected from PeriCoach users is providing valuable feedback for the development of next generation of PeriCoach. Through sales of PeriCoach, Analytica is building the world’s largest database on the pelvic floor muscle exercise. Development of future generations of PeriCoach will ensure more detailed and extensive data becomes available. In order to stay at the forefront of treating stress urinary incontinence Analytica will make a significant investment in the development of analytical tools to utilise this data, providing superior treatment options for health providers.

Continuing to develop PeriCoach will not only extend the company’s leadership but may also open additional higher value markets and increase the opportunity to partner with multi-national medical device companies.

Analytica will continue to concentrate on specific market segments while focussing on the further development of the PeriCoach.

During the quarter, Analytica also made solid progress with its post-approval clinical trial, which will provide independent data and further evidence of PeriCoach’s value. Three additional trial sites were added with additional patients being enrolled.

The cash balance as at 31st December was -$6,000 which was assisted by a loan from the Chairman of $277,000, from the previously announced $400,000 loan facility. However, this cash balance did not include the benefit of the R&D tax incentive of $1.901 million received after quarter end on 18th January. As at 27 January 2016, Analytica’s cash balance was $1.197 million.

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