Mid-August 2023, Imaging Biometrics, IQ-AI’s principal portfolio investment, announced a new distribution partnership with GE Healthcare Technologies (GEHC: Nasdaq). Pacts with GE and two other top-tier players in the medical imaging sector gives the Company access to an impressive footprint in the medical imaging sector well beyond what might otherwise be possible for a newcomer like Imaging Biometrics. Imaging Biometrics management revealed the Company’s expanding market access has filled its business pipeline with 45 prospects that are in various stages of vetting the Company’s AI-driven solutions for improving and enhancing data collected from medical imaging scans.
Along with the release of financial results for the first half of 2023, management guided for a significant increase at the topline at the second half 2023, as new customers move forward with subscriptions and licenses. We expect the Company to clear the GBp 800,000 revenue level in the current year, closing the gap to breakeven. Indeed, in the next fiscal year we estimate the Company could deliver positive cash flow for the first time.
The Company has made progress with its maiden effort in medical compound development, sponsoring a Phase I clinical trial of gallium maltolate for treatment of glioblastoma brain tumors. The trial design was recently expanded by 50% to 36 patients and the trial scope extended to determine an appropriate dosage for use in a Phase II clinical trial. Enrollment of patients with tumors has proceeded well, enabling trial completion in early 2024. Results analysis and reporting is expected in late 2024. We expect the Company to find a development partner to help support a Phase II effort.
We reiterate our Speculative Buy rating of IQAO.L and IQAIF.QB/OTC. The Imaging Biometrics team is busy pushing forward with new product development as well as market penetration, adding value to the Company with each accomplishment. Most projects in either the medical imaging solutions portfolio or in the Company new therapeutic compound development effort require several quarters if not years to bring to market. Accordingly, the stock is appropriate for investors with an extended investment horizon and the patience for hold long positions through to the achievement of milestones and objectives.
Click on the image below to see additional details in the full 13-page report published August 29, 2023.
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