HealthBeacon plc

INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2022

Increasing Momentum, Added to Digital Health Formulary, Managed through Chip Supply Headwind

Dublin, 30 September 2022, HealthBeacon plc ("HealthBeacon" or the "Company") and together with its subsidiary undertakings (together the "Group"), a leading Irish digital therapeutics company, announces its interim results for the six months ended 30 June 2022.

FINANCIAL HIGHLIGHTS

H1 2022 financial highlights (comparison to H1 2021):

· Deployed units increasing 144% to 10,206 (June 2021: 4,182)

· 57% growth in revenue to €0.9 million (June 2021: €0.5 million)

· Gross profit margin excluding Direct-to-Consumer ("DTC") sell-in revenue of 38% (June 2021: 57%)

· Net cash position at 30 June 2022 of €20.0 million (December 2021: €26.6 million)

· Well positioned to deliver 10x growth in units over the next 18 months

Six months ended 30 June	H1 2022	H1 2021	Change
	€'000	€'000	%
Revenue	867	545	57%
Gross Profit	87	313	(72%)
Gross Profit Margin (Group)	10%	57%
Gross Profit Margin (ex. DTC sell-in) Adjusted EBITDA*	38% (4,573)	57% (2,028)
Net cash	20,028	1,512
Units Deployed** (units '000)	10.2	4.2	143%

*Adjusted EBITDA is a non-accounting term which the Company has defined as: Excluding Share Based Compensation, Expected Credit Losses, Fx Gains/Losses and Warranty Expenses

**Units Deployed are units on lease or that have been sold to third parties

STRATEGIC AND OPERATIONAL HIGHLIGHTS

HealthBeacon continues to add new customers underpinning growth to 100k units by end of Q1 2024

· Continued expansion of client base to 25 currently, from 19 at the end of 2021

· Signed a major commercial contract in March 2022 with Evernorth, one of the largest independent pharmacy benefits manager and speciality pharmacy services in the US, owned by Cigna Corporation (NYSE: CI US).

· Added to Evernorth's Digital Health Formulary in September 2022, an industry leading platform of credible health apps validating the quality and effectiveness of HealthBeacon's Injection Care Management System ("ICMS")

· Commenced Specialty Pharmacy programmes, now working with three of the top five speciality pharmacy organisations in the US, commercialisation and scaling during 2023 from these programmes

· Launched inaugural NHSx programme in the UK, and actively engaged with a number of NHS Trusts on potential deployment

· Entered into partnership with the American Pharmacists Association Foundation ('APhA'), the largest national professional association of pharmacists in the US

· Commenced trial of the ICMS platform in the US in relation to Medicare reimbursement and expect to see further progress in H1 2023

Fully secured supply chain to deliver 100k units over the next 18 months

· Placed build order for 35,000 units to meet anticipated demand from pharmaceutical clients, specialty pharmacy, DTX and DTC channel

· Resolved the supply chain delay in H1 2022 in relation to key chip components

Continued innovation in partnership with customers

· Received approval from the Environmental Protection Agency ("EPA") for its Green Labs for sustainable processing of sharps bins and injection waste; launched Novartis sustainable waste management service in Ireland

· Launched Green Labs Dublin in April 2022 and Green Labs USA in September 2022

· Launched the Company's Patient Safety Software with key long-term partner in Ireland with negotiations under way for further rollout in Europe

· Launched Pill Management System and Integrated Smart Scale, for commercialisation into 2024, as part of the overall ambition to be the leading global medication adherence solution provider

Outlook

· HealthBeacon's ongoing engagement with new and prospective customers, together with the increasingly supportive reimbursement and healthcare system backdrop, underpins the current ten-fold growth expectations to the end of Q1 2024 and the very significant potential of the business beyond with the launch of new products and services.

· Implementation, systems and hiring progressing while strengthening the foundation for the rollout of products and services across key clients on the path to 100,000 units with run rate revenues of at least €25 million at that point

· Expect ca 15,000 units deployed by year end

Jim Joyce, HealthBeacon plc Chief Executive Officer said:

"HealthBeacon's vision is to become the world's leading digital therapeutics platform for patients managing medications in the home. During H1 2022 we generated significant momentum, despite some meaningful global supply chain challenges, adding important new clients, new products, key hires and expanding our capabilities, infrastructure and routes to market. The progress we have made to date, particularly in the specialty pharmacy services channel, has set the foundation for us to become market leaders and to provide a ten-fold increase in the number of patients using our technology in 2024. We are excited by the progression and momentum the business has made in the time since its listing on the Euronext Dublin Growth Market"

ANALYST PRESENTATION

A conference call for investors and analysts will be held today 30 September at 12:00pm. Please use the link here. An accompanying presentation is available at www.HealthBeacon.com

CONTACT DETAILS:
HealthBeacon plc: Laurence Flavin		Investor.Relations@HealthBeacon.com
Goodbody (Euronext Listing Sponsor and Broker): David Kearney		+353 (1) 667 0420
Stephen Kane
Drury (Public Relations):
Billy Murphy		+353 (0) 87 231 3085
Paul Clifford		+353 (0) 87 327 2161

About HealthBeacon plc

Headquartered in Dublin, HealthBeacon is an Irish digital therapeutics company that develops smart tools for managing medications for patients in the home. The HealthBeacon Injection Care Management System tracks adherence and persistence with medication schedules through the provision of medication management reminders, safe and sustainable sharps disposal devices, educational tools, and artificial intelligence (AI) driven data analytics. Peer reviewed evidence supports a 19% improvement in therapy persistence by patients and up to 26% improvement in adherence to therapy, which improves clinical outcomes and significantly improves efficiency in health systems. The Company has expanded its offering to growth management with the launch of its integrated Smart Scale and oral adherence with the launch of HB Smart Pills^TM which integrate with its existing technology. The Company operates across Europe, North America and the United Kingdom and employs more than 70 people and has obtained more than 30 design and utility patents. The Company's mission is to become the world's leading digital therapeutics platform for patients managing medications in the home.

Cautionary statement

This announcement contains certain projections and other forward-looking statements with respect to the financial condition, results of operations, businesses and prospects of HealthBeacon plc. These statements are based on current expectations and involve risk and uncertainty because they relate to events and depend upon circumstances that may or may not occur in the future. There are a number of factors which could cause actual results or developments to differ materially from those expressed or implied by these projections and forward-looking statements. Any of the assumptions underlying these projections and forward-looking statements could prove inaccurate or incorrect and therefore any results contemplated in the projections and forward-looking statements may not actually be achieved. Recipients are cautioned not to place undue reliance on any projections and forward-looking statements contained herein. Except as required by law or by any appropriate regulatory authority, HealthBeacon plc undertakes no obligation to update or revise (publicly or otherwise) any projection or forward-looking statement, whether as a result of new information, future events or other circumstances.

Overview

H1 2022 was a positive foundation setting period for HealthBeacon in its mission to become the world's leading digital therapeutics platform for patients managing medications in the home demonstrating demand across our existing customer base, our ability to acquire new customers and commencement of the DTC channel entry in North America.

The Company continues to actively look to acquire new customers and during 2022 increased its client base from 18 at the end of 2021 to 25 customers currently. In February 2022, the Company announced that it had added five pharmaceutical and national healthcare systems to its client base including the UK's National Health Service (NHS) and the Irish Health Service Executive (HSE). These additions further strengthen the Company's customer base which includes companies such as AbbVie, Accord Healthcare, Amryt, Clonmel Healthcare, HSE, NHS, Novartis, Sanofi, Teva and Viatris.

In March 2022, the Company signed a major contract with Evernorth and was added to its Digital Health Formulary. This provides HealthBeacon with streamlined and integrated access to pharma manufacturers and access to a group with over 100 million patients which further underpins the path to 100,000 units.

The Company launched its Pill Management System the 'HB Smart Pills^tm', The Pills solution, which provides smart storage for up to 6 weeks of doses for as many as 9 different medications, and integrates seamlessly with the Company's existing technology platform. The innovative system notifies the member patient when prescription refills are required and records visual images of pill containers to ascertain medication adherence.

The Company launched its Smart Scale, an integrated solution that forms part of its ICMS. The HealthBeacon Smart Scale enables patients to add weight monitoring to its ICMS, as the connected weight scale tracks weight progression, providing clinical teams with insights on specific medication outcomes. These innovations have come in partnership with our growing customer base and we expect that commercialisation will occur into 2024, underpinning future growth and our ambition to be the world's leading digital therapeutics platform for patients managing medications in the home.

The Company placed a build order for 35,000 Smart Sharps Bin units to meet anticipated demand during 2022 from pharmaceutical clients, specialty pharmacy and DTC.

While the Company experienced unanticipated delays in the near-term supply of chip components for its Smart Sharps Bin during the period, this has been fully resolved and we now have security of supply to achieve the expected 100,000-unit deployment by the end of Q1 2024.

The Company received approval from the EPA for its Green Labs and launched the offering in partnership with Novartis. The labs have been built in Dublin and Orlando to provide sustainable processing of sharps bins and injection waste management services.

In February 2022, the results of HealthBeacon's latest study, published in the prestigious International Journal of Clinical Pharmacy, proves the significant impact the Company's ICMS can have on medication adherence for patients across a range chronic, autoimmune conditions. The new peer reviewed evidence demonstrates up to a 26% improvement in medication adherence by patients using the Company's ICMS. This Medication Adherence study represents the Company's 6th peer reviewed study of Injection Care Management and Adherence.

Orla O'Gorman joined the Board as a Non-Executive Director in April 2022. Orla is a Chartered Accountant and Non-Executive Director of Cairn Homes plc and Elite SpA. Orla is a member of the European Commission's SME Technical Expert Group; Chartered Accountants Ireland Sustainability Expert Working Group and the Ethics and Governance Committee; and the Advisory Board of Elkstone Ventures. She was previously Head of Equity at the Irish Stock Exchange.

Omar Sosa joined as Vice President of Global Operations. He has previously held senior roles at Priority Health Care, Aetna Specialty, Oncology Therapeutics Network, Shoppers Drug Mart. Omar founded Mevesi Inc, a business intelligence and data warehousing company serving the pharmacy industry and served as CEO until it was acquired in 2018. Omar will oversee HealthBeacon's business operations as it scales.

In September 2022, the Company entered a commercial partnership with the APhA. The partnership will enable patients to access enhanced medication use support through an integrated pharmacist offering with the HealthBeacon Injection Care Management System ("ICMS") products in community pharmacies across the United States.

Commenced trading in the U.S. on the OTCQX Market under the ticker 'HBCNF'. The OTCQX is the top tier of the three marketplaces for the over the counter (OTC) trading of stocks and is operated by the OTC Markets Group. For companies listed on a qualified international exchange, trading on the OTCQX facilitates more efficient access to the U.S. financial markets for HealthBeacon and, through streamlined market standards, enables transparent trading of the Company's stock for U.S. investors.

Financial Review

Revenues of €0.7 million were up 57% on June 2021. Revenue is comprised of revenue from Patient Support Programmes ("PSP") of €0.4 million and Direct to Consumer ("DTC") of €0.3 million. Expansion of the customer base, provision of software licences and the introduction of the DTC offering in North America are key contributors to the growth in revenue.

The Company had a net cash position of €20.0 million at 30 June 2022 (December 2021: €26.6 million). The decrease in cash is attributable to the prepayments made to secure parts for the 35,000 unit order, working capital requirements and fund day-to-day operations.

Commercial signing and implementation with Evernorth a top-5 US Specialty Pharmacy and Insurance group of our smart sharps bin will build significant momentum for the Company into 2023.

Reported gross profit margin for the Company was 10%. The gross profit margin excluding the DTC channel was 38% (June 2021: 57%). Gross Margin excluding DTC declined due to an increase in data and connectivity costs. The final DTC sale to Hamilton Beach was completed in H1 2022 however the launch did not take place until March, hence the Company generated revenue on the initial unit sale to Hamilton Beach and did not generate revenue from the sell through to the end user. As noted in the July trading update DTC rollout has been slower than anticipated and is expected to be c.10% of the 100,000 near term unit target. As DTC units are sold from Hamilton Beach to the end user HealthBeacon will receive revenue from its share of the mark-up on the unit and the monthly subscription recurring revenue which is paid by the end user. The Company continues to expect run rate gross margins in excess of 60% as outlined at the time of the IPO.

The Company recorded a loss from operating activities of €6.2 million (June 2021: loss €2.5 million). Costs relating to increases in wages and salaries including non-cash Share Based Compensation expense of €1.0m contributed to the increase in the operating loss for 2022. Average headcount increased to 73 employees (June 2021: 53 employees) as operations scale to meet the expected growth and demand.

Principal Risks and Uncertainties

The Company has a risk management structure in place, which is designed to identify, manage and mitigate business risk. Risk assessment and evaluation is an essential part of the Company's internal control system. It is designed to enable the Company to meet its business objectives by appropriately managing, rather than eliminating, these risks.

Strategic, Operational and Financial Risks

Global Macro-Environment: The Company's business is inﬂuenced by economic conditions in Ireland, North America, Europe and by global economic conditions. Levels of healthcare spending and spending on pharmaceutical products and medical devices have been and could be adversely affected by decreases in people holding health insurance policies, disposable income decreases, tax increases, unemployment increases, or the spending patterns of customers changing to reﬂecting increased uncertainty or apprehension regarding economic conditions or cessation of reimbursement schemes. Any of these factors could have an adverse effect on the Company's ability to deliver results.

Partnerships: The success of our business depends on achieving our strategic objectives, including through entering into strategic partnerships with pharmaceutical, specialty pharmacy and retail partners where we may have a lesser degree of control over the business operations, which may expose us to additional operational, financial, legal or compliance risks.

Product Adoption: There is early-stage uncertainty around the rate or level of patient and medical professional adoption of the Company's Injection Care Management System and the reliance on reimbursement schemes remains a primary risk in achieving the Company's strategy. The Company's strategy depends on the continued growth of the remote healthcare market in the United States, Europe, and elsewhere. These trends which are unrelated to the performance of the Company may have a material adverse effect on the performance of the Company itself.

Intellectual Property: Our intellectual property portfolio may not prevent competitors from independently developing products and services similar to or duplicative to ours, and the value of our intellectual property may be negatively impacted by external dependencies. If we are not able to protect our intellectual property, the value of our brand and other intangible assets may be diminished, and our business may be adversely affected. The Company invests in R&D in order to protect and expand its current IP suite and offer new solutions to patients for managing their medications, there is no guarantee that R&D investment may result in new product development or protect the Company against technological changes.

Supply Chain: Significant material shortages, supplier capacity constraints, supplier production disruptions, supplier quality and sourcing issues or price increases could increase our operating costs and adversely impact the competitive positions of our products. Our reliance on third-party suppliers, contract manufacturers and service providers, and third parties to secure materials, parts and components used in our products exposes us to volatility in the prices and availability of these materials, parts, components and services. A disruption to these providers could have an adverse effect on our ability to meet our commitments to customers or increase our operating costs. Quality, capability and sourcing issues experienced by third-party providers can also adversely affect our costs, margin rates and the quality and effectiveness of our products and services and result in liability and reputational harm.

Environment and Sustainability: The increasing global focus on environmental and sustainability governance is recognised by the Group, and by its stakeholders. Failure to appropriately assess, monitor and manage the Group's impact on the environment and the communities in which it operates may result in reputational damage, impacting the Group's ability to deliver results.

Growth Management: With continuous execution on growth initiatives, strategies and operating plans, the Company anticipates expansion of its service offerings to new therapeutic areas as well as future expansion into select international markets. Any failures to effectively execute on growth initiatives, business strategies, or operating plans will adversely affect the Company's operations. If the Company is unable to attract new clients or expand members with existing clients, revenue growth may take longer than expected. Any inability to offer high-quality member support to patients could also adversely affect the Company's relationships with future and prospective payers, members, and subsequently adversely impact the Company's future operations and financial condition.

Licences and Regulatory: The Company is dependent to a signiﬁcant degree on certain licences and regulatory approvals to conduct its business. The Company is also subject to domestic, European and foreign laws and regulations including but not limited to with respect to healthcare, consumer protection, privacy and data protection, employment, accounting, customs, tax, antitrust and competition matters. A failure to obtain, maintain, or comply with the terms of such licences, applicable laws and regulations could have an adverse impact on the Company.

Treasury and Foreign Currency: The Company is exposed to liquidity, interest rate and credit risks. The Company's reporting currency is Euro. Exposure to foreign currency is present in the normal course of business, together with the Company operating in jurisdictions outside of the Eurozone.

Statement of Directors' responsibilities

The Directors confirm to the best of their knowledge that the condensed consolidated interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting, as adopted by the EU, and to the best of their knowledge and belief:

a) the condensed consolidated interim financial statements comprising the Condensed Consolidated Group Income Statement, the Condensed Consolidated Group Statement of Comprehensive Income, the Condensed Consolidated Group Balance Sheet, the Condensed Consolidated Group Cash Flow Statement, the Condensed Consolidated Group Statement of Changes in Equity and related notes have been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU, and are prepared in order to comply with the Euronext Growth Market Rule Book;

b) the interim results include a fair review of the important events that have occurred during the first six months of the financial year and their impact on the condensed consolidated interim financial statements for the half year ended 30 June 2022.

Signed on behalf of the Board

J Joyce L Flavin

29 September 2022 29 September 2022

Consolidated Statement of Profit or Loss and Other Comprehensive Income

For the six months ended 30 June 2022

		(unaudited)	(unaudited)
		6 months to	6 months to
		30-Jun	30-Jun
		2022	2021
		€'000	€'000
Income	Note
Lease Revenue	4	208	316
Revenue from Contracts with Customers	3	659	229
Total Revenues		867	545
Cost of Sales	7	(780)	(232)
Gross Profit		87	313


Operating Income / (Expenses)
Impairment losses on Financial Assets	16	(9)	-
Other Operating Expenses	7	(6,295)	(2,819)
Other Operating Income	6	66	-
Loss from Operating Activities		(6,151)	(2,506)

Finance Costs
Finance Income	8	67	-
Finance Expense	8	(115)	(8)
Net Finance Costs		(48)	(8)

Loss before Taxation		(6,199)	(2,514)
Tax Expense	9	-	-
Loss from Continuing Operations		(6,199)	(2,514)

Other Comprehensive Income / (Expense)

Measured through Other Comprehensive Income		-	-
Tax on Other Comprehensive Income		-	-
Other Comprehensive Income / (Expense)		-	-
Total Comprehensive Loss for the year		(6,199)	(2,514)

All amounts are attributable to the owners of the parent.

Basic Earnings per Ordinary Share	10	(0.37)	(0.25)
Diluted Earnings per Ordinary Share	10	(0.37)	(0.25)

All income relates to continuing operations. All profits and total comprehensive income for the current and preceding financial year are attributable to the equity holders of the company. The accompanying notes form an integral part of these financial statements.

J Joyce L Flavin

Director Director

29 September 2022 29 September 2022

Consolidated Statement of Financial Position
As at 30 June 2022

		(unaudited)
		30-Jun	31-Dec
		2022	2021
		€'000	€'000
Non-Current Assets	Note
Intangible Assets	11	2,803	2,651
Property & Equipment	12	1,116	1,203
		3,919	3,854

Current Assets
Inventories	14	244	127
Trade and Other Receivables	16	2,181	2,348
Cash and Cash Equivalents	17	20,028	26,613
		22,453	29,088
Total Assets		26,372	32,942

Equity
Share Capital	19	42	42
Other Reserves	19	1,232	231
Share Premium	19	29,926	29,926
Accumulated Deficit	19	(7,133)	(934)
Total Equity		24,067	29,265

Non-Current Liabilities
Trade and Other Payables	18	127	112
		127	112

Current Liabilities
Trade and Other Payables	18	2,178	3,565
		2,178	3,565
Total Liabilities		2,305	3,677
Total Equity and Liabilities		26,372	32,942

J Joyce L Flavin

Director Director

29 September 2022 29 September 2022

Company Statement of Financial Position
As at 30 June 2022

		(unaudited)
		30-Jun	31-Dec
		2022	2021
		€'000	€'000
Non-Current Assets	Note
Intangible Assets	11	2,803	2,651
Property & Equipment	12	970	1,012
		3,772	3,663

Current Assets
Inventories	14	244	127
Trade and Other Receivables	16	2,217	2,384
Cash and Cash Equivalents	17	19,985	26,587
		22,446	29,098
Total Assets		26,219	32,761

Equity
Share Capital	19	42	42
Other Reserves	19	1,232	231
Share Premium	19	29,926	29,926
Accumulated Deficit	19	(7,036)	(848)
Total Equity		24,164	29,351

Non-Current Liabilities
Trade and Other Payables	18	-	-
		-	-

Current Liabilities
Trade and Other Payables	18	2,055	3,410
		2,055	3,410
Total Liabilities		2,055	3,410
Total Equity and Liabilities		26,219	32,761

J Joyce L Flavin

Director Director

29 September 2022 29 September 2022


Consolidated Statement of Changes in Equity For the six months ended 30 June 2022

		Share	Other	Share	Accumulated	Total
		Capital	Reserves	Premium	Deficit	Equity
		€'000	€'000	€'000	€'000	€'000

As at 1 January 2021	Note	6	-	18,072	(11,006)	7,072
Loss for the financial year		-	-	-	(2,514)	(2,514)
Shares issuance	19	-	-	357	-	357
As at 30 June 2021 (unaudited)		6	-	18,429	(13,520)	4,915

As at 1 January 2021		42	231	29,926	(934)	29,265
Loss for the financial year		-	-	-	(6,199)	(6,199)
Long term incentive plan	19	-	1,001	-	-	1,001
As at 30 June 2022 (unaudited)		42	1,232	29,926	(7,133)	24,067


Company Statement of Changes in Equity
For the six months ended 30 June 2022
		Share	Other	Share	Accumulated	Total
		Capital	Reserves	Premium	Deficit	Equity
		€'000	€'000	€'000	€'000	€'000

As at 1 January 2021	Note	6	-	18,072	(10,930)	7,148
Loss for the financial year		-	-	-	(2,508)	(2,508)
Shares issuance	19	-	-	357	-	357
As at 30 June 2021 (unaudited)		6	-	18,429	(13,438)	4,996

As at 1 January 2022		42	231	29,926	(848)	29,351
Loss for the financial year		-	-	-	(6,188)	(6,188)
Long term incentive plan	19	-	1,001	-	-	1,001
As at 30 June 2022 (unaudited)		42	1,232	29,926	(7,036)	24,164

Consolidated Statement of Cash Flows
For the six months ended 30 June 2022


		(unaudited)	(unaudited)
		30-Jun	30-Jun
		2022	2021
	Note	€	€
Loss Before Tax		(6,199)	(2,514)
Adjustments for:
Depreciation of Property & Equipment	12	266	235
Amortisation of Intangible Assets	11	295	243
Credit Impairment Charge	16	9	-
Interest Expense on Leases	8	4	5
Share Based Payments	7	-	-
Warranty Expense	18	-	-
Foreign exchange loss/(gain)	8	(67)	3
		(4,684)	(2,028)


(Increase)/Decrease in Receivables		224	(344)
(Increase)/Decrease in Inventory		(117)	10
Increase/(Decrease) in Payables		(1,300)	(145)
Net Cash outflow from Operating Activities		(5,877)	(2,507)

Investing Activities
Additions to Property, Plant & Equipment	12	(180)	(139)
Additions to Intangible Assets	11	(446)	(353)
Net Cash outflow from Investing Activities		(626)	(492)

Financing Activities
Proceeds from the issuance of share capital	19	-	357
Lease liability payments	22	(82)	(64)
Net Cash inflow/(outflow) from Financing Activities		(82)	293


Net increase/(decrease) in cash and cash equivalents		(6,585)	(2,706)
Cash and cash equivalents at the beginning of the period		26,613	4,235
Cash and cash equivalents at the end of the period		20,028	1,529

Company Statement of Cash Flows
For the six months ended 30 June 2022


		(unaudited)	(unaudited)
		30-Jun	30-Jun
		2022	2021
	Note	€	€
Loss Before Tax		(6,188)	(2,508)
Adjustments for:
Depreciation of Property & Equipment	12	222	201
Amortisation of Intangible Assets	11	295	243
Credit Impairment Charge	16	9	-
Interest Expense on Leases		1	2
Share Based Payments	7	999	-
Warranty Expense	18	9	-
Foreign exchange loss/(gain)		(67)	1
		(4,721)	(2,061)


(Increase)/Decrease in Receivables		224	(314)
(Increase)/Decrease in Inventory		(117)	10
Increase/(Decrease) in Payables		(1,328)	(169)
Net Cash outflow from Operating Activities		(5,942)	(2,534)

Investing Activities
Additions to Property, Plant & Equipment	12	(180)	(139)
Additions to Intangible Assets	11	(446)	(353)
Net Cash outflow from Investing Activities		(626)	(492)

Financing Activities
Proceeds from the issuance of share capital	19	-	357
Lease liability payments	22	(34)	(42)
Net Cash inflow/(outflow) from Financing Activities		(34)	315


Net increase/(decrease) in cash and cash equivalents		(6,602)	(2,711)
Cash and cash equivalents at the beginning of the period		26,587	4,223
Cash and cash equivalents at the end of the period		19,985	1,512

Notes to the Consolidated Financial Statements

1. General information

Basis of preparation

The condensed consolidated interim financial statements of HealthBeacon plc and its subsidiaries (the 'Group') have been prepared in accordance with IAS 34, Interim Financial Reporting, as endorsed by the European Union.

The financial information in the condensed interim consolidated financial statements has been prepared on a basis consistent with that adopted for the year ended 31 December 2021. The accounting policies applied in the interim financial statements are the same as those applied in the 2021 Annual Report.

The Half-Yearly Financial Report is unaudited and has not been reviewed by the Group's auditor pursuant to the Financial Reporting Council guidance on Review of Interim Financial Information. These interim financial statements are prepared in order to comply with the Euronext Growth Market Rule Book and are not statutory financial statements as they do not include all of the information required for full annual financial statements and should be read in conjunction with the HealthBeacon Group Annual Report (statutory financial statements) for the year ended 31 December 2021. The audit report on those statutory financial statements was unqualified and did not contain any matters to which attention was drawn by way of emphasis.

The preparation of interim financial statements in compliance with IAS 34 requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the interim financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The areas involving a high degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in the Group's Annual Report for the year ended 31 December 2021 in note 1 and 2 on pages 41 to 50.

The Group's interim financial statements are prepared for the six-month period ended 30 June 2022. The interim financial statements incorporate the Company and all of its subsidiary undertakings. A subsidiary undertaking is consolidated by reference to whether the Group has control over the subsidiary undertaking. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity.

HealthBeacon plc is incorporated in the Republic of Ireland under registration number 530689 with a registered office at Unit 20 Naas Road Business Park, Muirfield Drive, Naas Road, Dublin 12, D12 WD85, Ireland.

Going Concern

The financial statements have been prepared under the assumption that the Group and Company operates on a going concern basis and on an accruals basis and under the historical cost convention as modified to include the fair valuation of certain financial instruments.

The Group and Company recorded a loss for the financial period. After making enquiries and reviewing the Group and Company's forecasts and projections, the Directors have reasonable expectation that the Group and Company has adequate resources to continue in operational existence for the foreseeable future. The Group and Company is projecting to significantly increase revenues in 2022 and is projecting profits in the near term onwards due to its broadening partnership base. In 2021, the Group and Company has successfully fundraised through the issuance of convertible loan notes facilitating the investment in the projected growth. The Group also completed an equity listing on the Euronext Growth which will further support the Group's long-term strategy, including investment in infrastructure and research and development. Accordingly, the Directors continue to adopt the going concern basis in preparing the financial statements.

2. New Standards

New Standards, Amendments, and Interpretations

There have been no accounting standards, amendments and interpretations that are effective for the first time in respect of the Group condensed interim financial statements for the six months ended 30 June 2022.

New Standards and Interpretations not yet adopted

Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2022 reporting periods and have not been adopted by the Group. These standards are not expected to have a material impact in the current or future reporting periods and on foreseeable future transactions.

3. Revenue

The Group generates revenues primarily from the sale of data and project management services and through the lease of injectable care management systems.

	30-Jun	30-Jun
	2022	2021
	€'000	€'000
Income
Revenue from Contracts	659	229
Lease Revenues (note 4)	208	316
Total Revenue	867	545

Major Products/service lines

Point in time
Activation Fees	26	28
Unit Sales	296	-
Total Point in time	322	28

Over time
Data & Project Management Services	225	103
Licence Fees	52	41
Other	60	56
Total over time	337	200
Total Revenue from Contracts	659	228

The Company's largest customer is a US-listed company with an investment grade rating that accounted for 34% of Total Revenues in 2022 (2021: 0%).

The decline in customer concentration is attributable to the end of the exclusivity agreement with a client during the proof of concept phase, new market entries and customer expansion.

The Group has deferred income balances that are due to be recognised within the next financial year of €74,939 (2021: €143,931).

For information on the Company's contract balances, including movements during the period, refer to note 18.

4. Lease Revenues

	30-Jun	30-Jun
	2022	2021
	€'000	€'000

Lease Revenues	208	316

5. Segment Information

The Group has two operating segments being Patient Support Programmes (PSP) and Direct-to-Consumer (DTC). These operating segment reflects the Group's organisational structure and the nature of the financial information reported to and assessed by the Group Chief Executive and Chief Financial Officer, who are together determined to fulfill the role of Chief Operating Decision Maker (as defined in IFRS 8).

The principal factors employed in identifying the two operating segments were:

- the Group's organisational structure in 2022;

- the nature of the internal reporting documentation such as management accounts and budgets; and

- the degree of homogeneity of products and services from which revenue is derived.

Following consideration of the above there has been no additional operating or reportable segment identified.

The Group will continue to monitor the quantitative thresholds included in IFRS 8 and the qualitative guidance for operating and reportable segment identification.

The accounting policies of the reportable segments are the same as the Group's accounting policies described in these financial statements. Segment gross profit or loss represents the profit or loss earned by each segment without allocation of central operating expenses, other operating income and interest costs. This is the measure reported to the Chief Operating Decision Maker for the purpose of resource allocation and assessment of segment performance.

	PSP	DTC	Total	PSP	DTC	Total
	30-Jun	30-Jun	30-Jun	30-Jun	30-Jun	30-Jun
	2022	2022	2022	2021	2021	2021
	€'000	€'000	€'000	€'000	€'000	€'000

Revenue from Contracts	363	296	659	229	-	229
Lease Revenue	208	-	208	316	-	316
Total Revenue	571	296	867	545	-	545
Cost of Goods Sold	(354)	(426)	(780)	(232)	-	(232)
Gross Profit	217	(130)	87	313	-	313

Centralised Operating Expenses			(6,295)			(2,819)
Credit Impairment Charge			(9)			-
Other Operating Income			66			-
Finance Expense			(48)			(8)
Loss before Tax			(6,199)			(2,514)

Inter-segment sales for the financial period amounted to Nil (2021: Nil). All sales are to external customers. The management information provided to the Chief Operating Decision Maker does not include an analysis by reportable segment of assets and liabilities and accordingly no analysis by reportable segment of total assets or total

liabilities is disclosed.

Assets and liabilities are reported to the Board at a Group level and are not reported on a segmental basis.

The Group operates in three principal geographical areas: Republic of Ireland (country of domicile), the United States of America and Europe. The Group's revenue from continuing operations with external customers is detailed below:

	PSP	DTC	Total	PSP	DTC	Total
	30-Jun	30-Jun	30-Jun	30-Jun	30-Jun	30-Jun
	2022	2022	2022	2021	2021	2021
Geographical Breakdown of Revenue	€'000	€'000	€'000	€'000	€'000	€'000
Geographical Breakdown of Revenue
United States of America	76	296	372	79	-	-
Ireland	321	-	321	314	-	-
Europe	174	-	174	152	-	-
	571	296	867	545	-	545

The Group retains the majority of its assets in its country of domicile. The necessary geographical information is not readily available and due to the cost of producing discrete financial information in relation to the other Geographies in which it operates the Group has not disclosed this information. The Group will continue to monitor this.

As part of its expansion into the United States of America and the Direct-to-Consumer channel the Group entered an exclusivity agreement with an established retail partner. The Group sells products to the retail partner who then distributes these to consumers. Once sold to the consumer the Group receives a profit share on the difference between the initial selling price to their partner and the final selling price to the consumer less allowable costs.

Once sold through to the end customer, the Group receives monthly subscription revenues from the ultimate purchaser. The final sale was completed in the period and launch did not take place until March 2022, the Group generated revenue on the initial sale but did not generate revenue from the sell through to the consumer.

6. Other Operating Income

	30-Jun	30-Jun
	2022	2021
	€'000	€'000

Other Operating Income	66	-

During the financial period ended 30 June 2022, HealthBeacon recognised Government grant income totaling €66,000 (2021: Nil).

As part of the Group's R&D it is eligible for grants and tax credits from Government bodies. The grants received relate to eligible expenditure that involves the Group receiving income for expenses such as staff costs incurred in the development of Intellectual Property and other Intangible Assets.

7. Loss from Operating Activities

Operating loss has been arrived at after charging:

	30-Jun	30-Jun
	2022	2021
	€'000	€'000
Cost of Sales Analysis:
Amortisation	83	59
Depreciation	62	82
Data Connectivity & Services	204	76
Direct-to-Consumer Units	426	-
Other	4	15
	780	232

The Group recognised an inventory expense of €425,923 in cost of sales during the period (2021: Nil).

	30-Jun	30-Jun
	2022	2021
	€'000	€'000
Operating Costs Analysis
Accounting and Auditing	94	60
Marketing Costs	111	4
Development Costs	84	77
Other Operating Expenses	598	181
Office Costs	204	81
Depreciation & Amortisation	416	337
Staff and Consultancy Costs	4,749	2,055
Distribution costs	48	24
	6,304	2,819


Auditors Remuneration	23	15
Other Services	-	-
Tax Advisory Services	71	8
	94	23

Staff Costs
	30-Jun	30-Jun
	2022	2021
	€'000	€'000
Wages and Salaries	4,081	1,591
Pension Costs	54	17
	4,135	1,608

€423,737 of staff costs were capitalised during the financial period 2022 (2021: €Nil). Staff costs increased in the period due to increased employment levels.

Recognised within staff costs in the financial period is a share based payment expense of €998,563 (2021: €Nil) in relation to the 2021 long term incentive plan (Note 19).

8. Net Finance Costs
	30-Jun	30-Jun
	2022	2021
	€'000	€'000
Finance (Income)/Expense
Bank Charges	3	-
Interest Expense	108	-
Interest Expense on Leases	4	5
Foreign Exchange (Gain)/Loss	(67)	3
	48	8


9. Taxation
	30-Jun	30-Jun
	2022	2021
	€'000	€'000
a) Analysis of tax (expense)/income for the year
Current tax income:
Current year	-	-

Deferred tax - origination and reversal of temporary differences
Current year	-	-
Tax income	-	-

b) Factors affecting the tax (charge)/income for the year

Loss before tax at 12.5% (2021: 12.5%)	(6,199)	(2,514)

Tax on Loss at 12.5% (2021: 12.5%)	775	314

Adjustment to loss brought forward	(775)	(314)
Tax on Income	-	-

HealthBeacon has unrecognised deferred tax assets at the end of the reporting period of €3.2m (2021: €2.4m).

10. Earnings per Share

Both the basic and diluted earnings per share have been calculated using the loss attributable to shareholders of the parent company as the numerator, i.e. no adjustment to the loss was necessary in 2022 or 2021

The reconciliation of the weighted average number of shares for the purpose of diluted earnings per share to the weighted average number of ordinary shares used in the calculation of basic earnings per share is as follows

	30-Jun	30-Jun
	2022	2021
	'000	'000

Weighted average number of shares used in basic EPS	16,890	10,040
Weighted average number of shares used in diluted EPS	16,890	10,040

The Group and Company have updated the comparative EPS calculation for 2021 due to a share re- organisation that took place in November 2021. The re-organisation was necessary to re-register the Company from a Limited Company to a Public Limited Company with the Irish Companies Registration Office. The Company was required to have a minimum issued and paid up Ordinary Share Capital of €25,000. The Company issued bonus shares to existing Ordinary and Preference holders from existing reserves to achieve this.

11. Intangible Assets

Group and Company at 30 June 2022

	Prototype &	Patents,
	Software	trademarks
	Development	& licences	Total
	€'000	€'000	€'000
Cost
Opening Cost	3,791	248	4,039
Additions	437	9	446
Closing Cost	4,228	257	4,485

Amortisation
Opening Accumulated Amortisation	1,372	15	1,387
Amortisation for the period	290	5	295
Closing Accumulated Amortisation	1,662	20	1,682

Closing Net Book Value	2,566	237	2,803
Opening Net Book Value	2,419	233	2,651

Group and Company at 31 December 2021

	Prototype &	Patents,
	Software	trademarks
	Development	& licences	Total
	€'000	€'000	€'000
Cost
Opening Cost	3,226	236	3,462
Additions	565	12	577
Closing Cost	3,791	248	4,039

Amortisation
Opening Accumulated Amortisation	880	8	888
Amortisation for the financial year	492	7	499
Closing Accumulated Amortisation	1,372	15	1,387

Closing Net Book Value	2,419	233	2,651
Opening Net Book Value	2,346	228	2,574

12. Property and Equipment

Group at 30 June 2022

			Fixtures,	Right
	Development	HealthBeacon	Fittings	of Use	Production
	Units	Devices	Equipment	Asset	Equipment	Total
	€'000	€'000	€'000	€'000	€'000	€'000
Cost
Opening	209	1,979	245	845	142	3,420
Additions	-	-	180	-	-	180
Closing	209	1,979	425	845	142	3,600

Depreciation & Impairment
Opening	209	1,218	129	614	47	2,217
Depreciation	-	144	44	72	7	266
Closing	209	1,362	173	686	54	2,483

NBV Closing	-	617	252	159	88	1,116
NBV Opening	-	761	116	231	95	1,203

Group at 31 December 2021

			Fixtures,	Right
	Development	HealthBeacon	Fittings	of Use	Production
	Units	Devices	Equipment	Asset	Equipment	Total
	€'000	€'000	€'000	€'000	€'000	€'000
Cost
Opening	209	1,857	176	586	141	2,969
Additions	-	-	69	-	1	451
Closing	209	1,979	245	845	142	3,420

Depreciation & Impairment
Opening	186	934	111	467	32	1,730
Depreciation	23	284	18	147	15	487
Closing	209	1,218	129	614	47	2,217

NBV Closing	0	761	116	231	95	1,203
NBV Opening	23	923	65	119	109	1,239

Company at 30 June 2022

			Fixtures,	Right
	Development	HealthBeacon	Fittings	of Use	Production
	Units	Devices	Equipment	Asset	Equipment	Total
	€'000	€'000	€'000	€'000	€'000	€'000
Cost
Opening	209	1,979	245	333	142	2,908
Additions	-	-	180	-	-	180
Closing	209	1,979	425	333	142	3,088

Depreciation & Impairment
Opening	209	1,218	129	294	47	1,897
Depreciation	-	144	44	28	7	222
Closing	209	1,362	173	322	54	2,118

NBV Closing	-	617	252	10	88	970
NBV Opening	-	761	116	40	95	1,011

Company at 31 December 2021


			Fixtures,	Right
	Development	HealthBeacon	Fittings	of Use	Production
	Units	Devices	Equipment	Asset	Equipment	Total
	€'000	€'000	€'000	€'000	€'000	€'000
Cost
Opening	209	1,857	176	333	141	2,716
Additions	-	-	69	-	1	191
Closing	209	1,979	245	333	142	2,908

Depreciation & Impairment
Opening	186	934	111	225	32	1,488
Depreciation	23	284	18	68	15	408
Closing	209	1,218	129	294	47	1,896

NBV Closing	0	761	116	40	95	1,012
NBV Opening	23	923	65	108	109	1,228

During the financial period, no assets owned by the Group or the Company were subject to impairment (2021: Nil).

13. Investment in Subsidiaries

	30-Jun	31-Dec
	2022	2021
	€'000	€'000

At Cost	-	-

The principal subsidiary undertakings, the capital of which consists of ordinary shares


Owned by the Company	Principal Activities	Incorporated
HealthBeacon US Inc. (1)	Operations	USA
Health Beacon Canada Inc. (2)	Operations	Canada

Registered addresses of entities above, denoted by reference attached to each entity
1. 251 Little Falls Drive, New Castle, Wilmington, Delaware, 19808.
2. 7100-380 rue Saint-Antoine O, Montréal (Québec) H2Y3X7

14. Inventories

	Group	Group	Company	Company
	30-Jun	31-Dec	30-Jun	31-Dec
	2022	2021	2022	2021
	€'000	€'000	€'000	€'000

Parts	227	127	227	127
Finished Goods	17		17
Total Inventory	244	127	244	127

15. Financial Instruments

The Group's financial instruments that are not carried at fair value and for which fair value is disclosed are categorised by the level of fair value hierarchy. The different levels are based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement. The levels have been defined as follows:

Level 1	Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.

Level 2	Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3	Unobservable inputs for the asset or liability

The Group's financial assets and liabilities measured at amortised cost all fall within Level 2. Fair values are estimated on the basis that the carrying value has been determined to be a good approximation of fair value.

16. Trade and Other Receivables
	Group	Group	Company	Company
	30-Jun	31-Dec	30-Jun	31-Dec
	2022	2021	2022	2021
	€'000	€'000	€'000	€'000

Trade Debtors - net	697	1,213	775	1,291
VAT Receivable	98	492	98	492
Other Debtors	1,194	446	1,152	404
Employee Loans	192	197	192	197
	2,181	2,348	2,217	2,384

Age analysis of net trade debtors:
Less than one month	576	1,099	576	1,099
One to two months	38	66	38	66
More than two months	83	48	161	126
	697	1,213	775	1,291

All of the Group and Company's trade and other receivables in the comparative periods have been reviewed for indicators of impairment. The impaired trade receivables are from a customer in the Irish patient services market.

The Group has recognised an expected credit loss of €9,009 in the period to 30 June 2022 (2021: €464).

The Company has recognised an expected credit loss of €8,992 in the period to 30 June 2022 (2021: €464)

Note 21 includes disclosures relating to the credit risk exposures and analysis of the allowance for expected credit losses. Both the current and comparative impairment provision apply the IFRS 9 expected loss model.

Outstanding customer balances are regularly monitored for evidence of customer financial difficulties including payment default, breach of contract etc. Significant balances are reviewed individually while smaller balances are grouped and assessed collectively. Receivable balances are in general unsecured and non-interest bearing.

Due to the global financial uncertainty arising from the COVID-19 pandemic, consideration has been given as to whether or not the future credit risk on trade and other receivables has

been elevated for the period ended 30 June 2022.

There have been no other significant changes to the Company's credit risk parameters or to the composition of the Company's trade receivables portfolio during the financial period.

Trade receivables are written off when there is no reasonable expectation of recovery. Where recoveries are made, these are recognised in the consolidated statement of profit or

loss and other comprehensive income.

17. Cash and Cash Equivalents

	Group	Group	Company	Company
	30-Jun	31-Dec	30-Jun	31-Dec
	2022	2021	2022	2021
	€'000	€'000	€'000	€'000


Cash at Bank	20,028	26,613	19,985	26,587

18. Trade and Other Payables

	Group	Group	Company	Company
	30-Jun	31-Dec	30-Jun	31-Dec
	2022	2021	2022	2021
	€'000	€'000	€'000	€'000

Trade Creditors	790	1,309	738	1,257
Employee Tax Payable	244	1,186	244	1,186
Other Creditors	81	49	81	49
Accruals	893	769	893	769
Deferred Income	75	90	75	90
Directors Loan	8	10	8	10
Lease Liabilities	213	264	15	49
	2,305	3,678	2,055	3,410
Analysed as:
Non-Current	127	112	-	-
Current	2,178	3,565	2,055	3,410
	2,305	3,677	2,055	3,410

The Group and Company recognised a warranty of €11,692 in relation to units sales for its Direct-to-Consumer channel (2021: € 26,260).

Non-current trade and other payables consists of operating lease liabilities (under IFRS 16). All other trade and other payables are due within 12 months.

19. Equity

Share Capital

The share capital of the Group and the Company consists only of fully paid ordinary shares with nominal (par) value of €0.0025 per share.

	Group	Group	Company	Company
	30-Jun	31-Dec	30-Jun	31-Dec
	2022	2021	2022	2021

	€'000	€'000	€'000	€'000
Ordinary Share Capital	42	42	42	42
	42	42	42	42

Share capital in each period as presented are fully allotted, called up and paid. Preference share capital is preferred on liquidation.

	Group	Group	Company	Company
	30-Jun	31-Dec	30-Jun	31-Dec
	2022	2021	2022	2021
Shares Issued and Fully Paid
- Beginning of the year	15,816,251	2,456,800	15,816,251	2,456,800
- Issued on exercise of share options	-	286,070	-	286,070
- Issued on conversion of Convertible Loan Note	-	1,116,631	-	1,116,631
- Bonus issue as part of share reorganisation	-	7,555,246	-	7,555,246
- Issued on Admission to Euronext Growth Market	-	4,373,504	-	4,373,504
- Issued on Private Placement	-	28,000	-	28,000
Shares Issued and Fully Paid	15,816,251	15,816,251	15,816,251	15,816,251
Shares Authorised for Share Based Payments	1,173,375	1,173,375	1,173,375	1,173,375
Total Shares outstanding at 31 December	16,989,626	16,989,626	16,989,626	16,989,626

The share capital of HealthBeacon consists only of fully paid ordinary shares with a nominal (par) value of €0.0025 per share. All shares are equally eligible to receive dividends and the repayment of capital and represent one vote at shareholders' meetings of HealthBeacon plc.

Additional shares were issued during 2021 relating to share-based payments. The Group issued 4,273,504 shares on 15 December 2021, corresponding to 33% of total shares issued. Each share has the same right to receive dividends and the repayment of capital and represents one vote at shareholders' meetings of HealthBeacon plc

Movement in the financial year ended 31 December 2021

Total consideration received for the allotment of both ordinary and preference shares during the financial year was €31.4m (2020: €5.3m). The shares were issued in accordance

with planned funding requirements. The new shares have been presented as share capital and share premium. Each share carrys one vote per share.

The Company was admitted to trading on the Growth Market in Euronext Dublin in December 2021 raising €25 million gross of transaction costs. As part of its funding plan the Group raised an additional €5.7m in a convertible loan note. The value of the convertible loan note on conversion was €6.5m. There were additional options exercised of €0.4m and the remainder of the 2020 Series A of €0.4m.

Equity settled share based payments

On 1 April 2015, share options were granted over 353,952 ordinary shares to five individuals 3,233 of these share options were granted at an exercise price of€1.16 and the remaining were granted at an exercise price of€1.55. The options vested immediately and were originally due to expire on 1 January 2020 however during the financial year 2019 this was extended to the option price was in excess of the market value for all parties, therefore no expense has been recognised in respect of this.160,006 options were issued during year ended 31 December 2020

127,682 share options were granted to Oyster at an exercise price of €3.25 and vest immediately. 32,324 were allocated to two individuals at the same exercise price and vested immediately.

The share options were issued at current valuation with no discount therefore no expense has been recognised in respect of this.

The fair value of the options granted in 2015 during the start up phase of the company were granted at a value in excess of the latest fundraising performed by the Group. The Group was unable to reliably estimate the fair value of the equity instruments granted at the measurement date due to the uncertainty surrounding the future value of the company over the vesting period. The Group measured the value of the options at their intrinsic value.

The 2020 options granted were granted at the latest fundraising price which took place during December 2020.

In November 2021 the Company entered into a Long Term Incentive Plan with key management, staff and contractors. This is the only share based payment scheme in place within the Group. The programme is equity settled. The award vests if the participant remains within the Groups service over the agreed vesting period. The maximum term of the awards granted under the scheme is 4 years.

The shares were granted for Nil consideration, the awards were granted when the Company was a private limited company pre-IPO filing. The fair value of the awards granted were determined on this basis taking account of the private market value of the shares being the difference in marketability and the liquidity of the shares. The fair value of the shares were determined to be €3.47 per share at the grant date.

	No. of Shares	Weighted average
		exercise price (€)

Outstanding at 31 December 2020	513,958	2.08
Forfeited	227,888	2.46
Exercised	286,070	1.54
Outstanding at 31 December 2021	-	-

Outstanding at 30 June 2022	-	-

Exercisable at 31 December 2021	-	-
Exercisable at 30 June 2022	-	-

Share premium account

The share premium account includes any premiums received on the issue of share capital, less any transaction costs associated with the issuing of shares.

Accumulated Deficit

The profit and loss account includes all current and prior period retained profits and losses. Adjustments regarding prior period errors are also included here.

During the prior financial year there was €18.3m transferred from share premium to the accumulated deficit as part of the shareholder reorganisation.

Other Reserves

Other reserves comprises of the share based payment expense as part of the Long Term Incentive Plan.

20. Related Party Transactions Group and Company

All transactions were made on terms equivalent to an arm's length transactions. Balances are included within Trade & Other Payables (Note 18)

		Group	Group	Company	Company
		30-Jun	30-Jun	30-Jun	30-Jun
		2022	2021	2022	2021
		€'000	€'000	€'000	€'000
Jim Joyce	Charged	-	-	-	-
(CEO)	Balance(s) (Note 18)	10	-	10	-
	Payment for services provided to the Company

John Armstrong	Charged	42	42	42	42
Oncology Limited	Balance(s) (Note 18)	42	49	42	49
	Consultancy Fees paid to John Armstrong who was a director in 2021 and resigned in November 2021


KeePointe	Charged	88	75	88	75
Marketing LLC	Balance(s) (Note 18)	-	25	-	25
	Payment to Keeshia Muhammad who was a director in 2021 and resigned in November 2021


BVP Investments	Charged	-	13	-	13
Limited	Balance(s) (Note 18)	-	-	-	-
	Payment to BVP which is controlled by Elliot Griffin who was a director in 2021 and resigned in November 2021

During the period Directors of the Group acquired shareholdings through options exercised and participation in the Convertible Loan Note entered into. Rob Garber and Rebecca Shanahan contributed €100,000 each to the total borrowing of €5.65m.

Mary Harney exercised options granted during 2020 which were at the current market value at the grant date.

Unless otherwise stated, none of the transactions incorporate special terms and conditions and no guarantees were given or received. Outstanding balances are usually settled in cash.

21. Financial Risk Management

The Group is exposed to various risks in relation to financial instruments. The Group's financial assets and liabilities by category are summarised in Note 15. The main types of risks are market risk (currency risk), credit risk and liquidity risk.

The Group's risk management is coordinated at its headquarters, in close cooperation with the board of Directors, and focuses on actively securing the Group's short to medium-term cash flows by minimising the exposure to volatile financial markets. Long-term financial investments are managed to generate lasting returns.

The Group does not actively engage in the trading of financial assets for speculative purposes nor does it write options. The most significant financial risks to which the Group is exposed to are described below.

The Group has no borrowings and is not subject to interest rate risk.

a. Currency Risk

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates.

The Group has operations located in the United States where revenue and expenses incurred are primarily denominated in United States Dollars. To mitigate the Group's exposure to foreign currency risk to the extent that it is possible the Group will seek to keep transactions involving foreign currency to a minimum and will seek wherever possible to have transactions conducted in Euro rather than an alternative foreign currency. The Group will match payments received in a foreign currency with expenses in the same currency where possible. Total revenue for the period to 30 June 2022 from activities in North America was €369,653 (2021: €41,951).

For the reporting period if the Euro had been 5% stronger/weaker the underlying loss would have been €15,614 higher/lower (2021: €3,249).

Currency risk is not material to the current operations of the Group. Through expansion the Group will evaluate and implement risk management procedures to minimise and mitigate the Group's exposure to fluctuations in foreign exchange rates.

b. Credit Risk

Credit risk is the risk that a counterparty fails to discharge an obligation to the Group. The Group is exposed to credit risk from financial assets including cash and cash equivalents held at banks, trade and other receivables.

Credit risk management

The credit risk is managed on a group basis based on the Group's credit risk management policies and procedures.

The credit risk in respect of cash balances held with banks and deposits with banks are managed via diversification of bank deposits and are only with major reputable financial institutions.

Trade receivables

The Group applies the IFRS 9 simplified model of recognising lifetime expected credit losses for all trade receivables as these items do not have a significant financing component.

In measuring the expected credit losses, the trade receivables have been assessed on

collective basis as they possess shared credit risk characteristics. They have been grouped based on the days past due and also according to the geographical location of the customer.

		Group		Group		Company		Company
		30-Jun-22		31-Dec-21		30-Jun-22		31-Dec-21
	ECL	Carrying		Carrying		Carrying		Carrying
	Provision	Amount	ECL	Amount	ECL	Amount	ECL	Amount	ECL
		€'000	€'000	€'000	€'000	€'000	€'000	€'000	€'000
Cat 1	0.00%	-	-	-	-	-	-	-	-
Cat 2	0.12%	20,858	24	28,450	36	20,815	24	28,423	36
Cat 3	2.78%	1,385	39	643	18	1,385	39	643	18
Cat 4	25-100%	28	28	28	28	28	28	28	28
		22,271	91	29,121	82	22,228	91	29,094	82

Group
Loss allowances as at 31 December 2020									38
Loss allowance recognised during the financial year									44
Loss allowances as at 31 December 2021									82
Loss allowance recognised during the financial year									9
Loss allowances as at 30 June 2022									91

Company
Loss allowances as at 31 December 2020									38
Loss allowance recognised during the financial year									44
Loss allowances as at 31 December 2021									82
Loss allowance recognised during the financial year									9
Loss allowances as at 30 June 2022									91

c. Liquidity Risk

Liquidity risk is that the Group might be unable to meet its obligations as they fall due. The Group manages its liquidity needs by monitoring forecast cash inflows and outflows due in day-to-day business.

The Group's objective is to maintain cash to meet its liquidity requirements for 30-day periods at a minimum. This objective was met for the reporting period. Funding for long-term liquidity needs is additionally secured through fundraising from external parties and existing shareholders.

The Group considers expected cashflows from financial assets in assessing and managing liquidity risk, in particular its cash resources and trade receivables. The Groups existing cash resources and trade receivables significantly exceed the current cash outflow requirements when compared to trade and other payables. Cashflows from trade and other receivables are all contractually due within six months.

	Group		Group		Company		Company
	30-Jun-22		31-Dec-21		30-Jun-22		31-Dec-21
	Carrying	Contract	Carrying	Contract	Carrying	Contract	Carrying	Contract
	Value	Outflow	Value	Outflow	Value	Outflow	Value	Outflow
	€'000	€'000	€'000	€'000	€'000	€'000	€'000	€'000
Trade creditors	790	790	1,309	1,309	738	738	1,257	1,257
Other Creditors	81	81	49	49	81	81	49	49
Accruals	893	893	769	769	893	893	769	769
Directors Loan	8	8	10	10	8	8	10	10
Lease Liabilities	213	223	264	278	15	15	47	49
	1,986	1,995	2,401	2,415	1,735	1,735	2,132	2,134

	Group		Group		Company		Company
	30-Jun-22		31-Dec-21		30-Jun-22		31-Dec-21
	Due	Due	Due	Due	Due	Due	Due	Due
	< 1 year	> 1 year	< 1 year	> 1 year	< 1 year	> 1 year	< 1 year	> 1 year
	€'000	€'000	€'000	€'000	€'000	€'000	€'000	€'000
Trade creditors	790	-	1,309	-	738	-	1,257	-
Other Creditors	81	-	49	-	81	-	49	-
Accruals	893	-	769	-	893	-	769	-
Directors Loan	8	-	10	-	8	-	10	-
Lease Liabilities	90	133	171	107	15	-	49	-
	1,863	133	2,308	107	1,735	-	2,134	-

d. Capital Management

The Group is not regulated but it aims to maintain capital resources commensurate with the nature, scale and risk profile of its business. It regards its capital as the total equity as shown on the consolidated statement of financial position.

22. Leases

Lease liabilities are presented in the consolidated statement of financial positions as follows:

	Group	Group	Company	Company
	30-Jun	31-Dec	30-Jun	31-Dec
	2022	2021	2022	2021
	€'000	€'000	€'000	€'000

Current	86	164	15	47
Non-Current	127	100	-	-
	213	264	15	47

Minimum lease payments due

Group
30 June 2022
	< 1 year	1-2 years	2-3 years	3-4 years	4-5 years	> 5 years	Total
Lease Payments	90	39	40	41	12	-	223
Finance Charges	(5)	(3)	(2)	(0)	(0)	-	(9)
	86	37	39	41	12	-	213

31 December 2021
	< 1 year	1-2 years	2-3 years	3-4 years	4-5 years	> 5 years	Total
Lease Payments	171	49	-	-	-	-	278
Finance Charges	(7)	(3)	--	--	--	-	(14)
	164	46	-	-	--	-	264

Company
30 June 2022
	< 1 year	1-2 years	2-3 years	3-4 years	4-5 years	> 5 years	Total
Lease Payments	15	-	-	-	-	-	15
Finance Charges	-	-	-	-	-	-	-
	15	-	-	-	-	-	15

31 December 2021
	< 1 year	1-2 years	2-3 years	3-4 years	4-5 years	> 5 years	Total
Lease Payments	49	-	-	-	-	-	49
Finance Charges	(2)	-	-	-	-	-	(2)
	47	-	-	-	-	-	47

Reconciliation of Liabilities arising from financing activities

	Group	Company
	Lease	Lease
	Liabilities	Liabilities
	€'000	€'000
31 December 2020	138	127
Cash flows
-Repayments	(160)	(84)
Non-Cash
- Finance Expenses	26	4
- Addition	259	-
31 December 2021	264	47
Cash flows
- Repayments	(82)	(35)
Non-Cash
- Finance Expenses	32	3
30 June 2022	213	15

The future minimum lease payments receivable under non-cancellable operating leases are as follows:

	30-Jun	30-Jun
	2022	2021
	€'000	€'000

Within one year	208	316
In the second year	-	-
In the third year	-	-
In the fourth year	-	-
In the fifth year	-	-
After five years	-	-
	208	316

The 30 June 2022 and 30 June 2021 lease receivable due within one year is an estimate. The Groups leases do not include a required or minimum number of units subject to lease charges. An expectation of the amounts receivable for future years has not been included on this basis.

The Group has 3 right-of-use asset leases in place as at 30 June 2022. These relate to 1 office and 2 warehouse leases. The average remaining lease term on the office buildings is 1 year and the warehouse is 4 years. The leases do not contain variable lease payments, extension options, purchase options, or termination options.

23. Capital Commitments

The Group has no capital commitments at the reporting period end (31 December 2021: Nil)

24. Contingent Liabilities

The Group has no contingent liability at the reporting period end (31 December 2021: Nil)

25. Subsequent Events

The Group Directors continue to monitor and assess the impact of Covid-19 and the situation in Ukraine.

26. Approval of Financial Statements

The Directors approved these financial statements on 29 September 2022.