ADHERIUM LIMITED APPENDIX 4E PRELIMINARY FINANCIAL

ADHERIUM LIMITED

ABN 24 605 352 510

ASX: ADR

APPENDIX 4E

PRELIMINARY FINANCIAL STATEMENTS

FOR THE YEAR ENDED

30 JUNE 2024

Adherium Limited

ABN 24 605 352 510

Adherium Limited provides the following information under listing rule 4.3A:

Details of the reporting period and the previous corresponding period

• Reporting period 12 months ended 30 June 2024

• Previous corresponding period 12 months ended 30 June 2023

Results for announcement to the market

12 months

30 June

2024

2023

Change

Revenue from ordinary activities

840,982

3,195,530

(2,354,548)

(73.7%)

Profit (loss) from ordinary activities after

tax attributable to members

(10,224,173)

(9,857,586)

(366,587)

(3.7%)

Net profit (loss) for the period attributable

to members

(10,317,331)

(9,851,490)

(465,841)

(4.7%)

Dividends:

Amount per Ordinary Share

Franked amount per Ordinary Share

Nil

Record date for determining entitlements

to the dividends

N/A

Net tangible asset backing per Ordinary

0.9 cents

0.2 cents

Commentary on results

Transformational Progress and Strategic US Commercialisation Focus

Adherium has significantly advanced its commercial strategy by concentrating on scalable partnerships and

customer relationships, aiming to achieve cash flow positivity by growing its remote patient monitoring

services in the United States – the largest healthcare market in the world and the only market offering

reimbursement for remote patient monitoring.

Adherium has been diligently developing its remote patient monitoring model to ensure its success. The

initiative aims to assist patients in mastering proper inhaler techniques while ensuring adherence to their

prescribed treatment regimens. In early July 2024, Adherium established a new model with Senta and Allergy

Partners, integrating their patient populations into our remote monitoring system—a novel approach not

previously attempted.

As pioneers in this field, we are committed to refining our model until it is proven effective before scaling up

operations. We have initiated campaigns targeting both patients and physicians; securing commitments from

doctors to collaborate with Adherium is crucial for implementing our adherence and technique monitoring

program successfully.

Our program is designed not only to help asthma sufferers with proper inhaler technique but also to make

sure they take their medications as prescribed. By ensuring regular use of inhalers under proper guidance of

our respiratory therapists our goal is for them to experience fewer breathing difficulties and life-threatening

exacerbations, supporting significantly improved quality of life.

Adherium Limited

ABN 24 605 352 510

Strategic Partnerships and Major Milestones

• Allergy Partners: Our collaboration with Allergy Partners, the largest allergy and asthma practice in the

US, integrates the Hailie® platform into their care approach, enhancing asthma management for over

300,000 patients.

• SENTA Partners: We have established a strategic partnership with SENTA Partners, a premier specialty

allergy and asthma group in the US. This collaboration will roll out the Hailie® platform across SENTA’s

extensive network, improving patient adherence and health outcomes.

• Intermountain Health: Our partnership with Intermountain Health has commenced with the delivery of

1,750 next-generation Hailie® Smartinhaler® sensors. Positive data from this program will demonstrate

how Hailie® devices can help hospital systems reduce their 30-day readmission rate and create a standard

of care model for all hospital systems. Our first patient enrolled in February.

• NuvoAir Medical: A new agreement with NuvoAir Medical includes a minimum purchase of 1,000 Hailie®

sensors, further expanding our reach in the US market.

• Valued Relationships Inc. (VRI), a Modivcare service: Strategic partnership with VRI, a leader in remote

patient monitoring solutions. This collaboration will enhance our capabilities by providing comprehensive

respiratory care and monitoring, leveraging VRI’s extensive network and expertise.

• Rimidi: New partnership signed in April 2024 focusing on integrating Adherium’s innovative Hailie®

Smartinhalers® into Rimidi’s comprehensive clinical management platform now used by health systems,

capitated health plans and physician practices across 17 states in the US.

Clinical Studies

AstraZeneca has selected Adherium’s Smartinhaler technology for its upcoming study. This agreement is

supported by a $1.1M contract with AstraZeneca to test the capabilities of Adherium’s Hailie® Smartinhaler®

platform.

Recent Regulatory Advancements

The US FDA has granted clearance for Adherium’s Hailie® sensor to be used with AstraZeneca's Airsupra® and

Breztri® inhalation devices on April 15, 2024. Adherium is now a global leader in the provision of digital health

solutions, with 14 US FDA (510K) cleared inhalation sensors now on market.

Financial Performance and Capital Raising

Adherium successfully completed a capital raising of $8.37 million. This funding is driving strategic research

and product development, sales, marketing, business development, and customer onboarding, ensuring we

continue to scale and meet growing market demands.

Future Outlook

Our mission is to have Hailie® become part of the ‘Standard of Care’ for Asthma and COPD management.

Currently, our focus is targeted to remote patient monitoring (RPM) and remote therapeutic monitoring (RTM)

in the USA. With the strategic partnerships we have in place and the number of patients that we can assist, as

we continue to scale will allow the Company to achieve breakeven and beyond. Proving our business model

will generate consistent revenue through USA market expansion utilising proven reimbursement vehicles and

validate the cost-effectiveness and clinical benefits of the Hailie® solution.

As we achieve success in this market, the Company will explore opportunities in the USA Value-Based

Healthcare (VBHC) market using health economic evidence. The Company will leverage validated data to

expand market reach and improve financial returns as evidence shows significant cost savings and improved

patient outcomes.

Adherium Limited

ABN 24 605 352 510

Following this phase, we will look to deploy our proven business model in other attractive markets such as the

UK & Australia, replicating the USA success targeting where need is highest and leveraging the proven health

economic benefits from the USA implementation. This will involve promoting substantial cost savings to

government/payors, patient benefits for asthma and COPD populations and reduced hospital service demand,

especially ER visits, through early interventions.

Financial commentary

The loss for the year after tax was $10,224,173 compared to $9,857,586 in 2023.

Revenue to 30 June 2024 was $840,982 compared with $3,195,530 in the prior year. The decrease occurred

due to a decline in clinical trial and project revenue as the Company focuses its commercial strategy in the USA

offering remote patient monitoring services.

Research and development activities to 30 June 2024 amounted to $4,144,960 compared with $4,725,231 in

the prior year, the decreased expenditure reflecting the shift from clinical trials and product development to

commercialisation of existing devices and software platform.

Sales and Marketing costs were $2,138,032 to 30 June 2024, compared with $4,006,309 in the prior year. This

decrease was a result of the completion of investment in partner platform integrations and partner costs in

relation to the SBRI NHS project.

Administrative expenses increased to $5,061,483 in year ended 30 June 2024 from $4,853,833 in the year

ended 30 June 2023. Administrative payroll increased to $1,407,585 from $1,318,630 in the prior year

reflecting a change of employee department classification. Administrative consulting fees increased $102,924

to support the US commercial strategy. Non-cash costs included asset depreciation and amortisation expense

of $108,091 compared to $190,872 in the prior year and unrealised currency gains of $144,990 compared to

an unrealised currency loss of $4,386 in the prior year relating to intercompany loan balances.

In addition to the changes noted above, the loss for the year after tax was $10,224,173 compared to

$9,857,586 in 2023. A key component of the increased loss was the year-on-year decrease in revenue of

$2,354,548.

Adherium ended the year to 30 June 2024 with cash of $6,197,538 compared to $9,077,258 in the prior year.

Dividends

The board has not declared dividends or made dividend payments in the periods ended 30 June 2023 and

2024. The Company does not have any dividend or distribution reinvestment plans in operation.

Details of entities over which control has been gained or lost

There have been no changes in control over entities in the year ended 30 June 2024.

Details of associates and joint venture

Adherium does not have any associates or joint ventures.

Adherium Limited

ABN 24 605 352 510

Trends in Performance

Adherium has pivoted from a clinical trials company to a data driven and remote patient monitoring company

that provides adherence and technique monitoring to their customers for a monthly subscription fee. The

company will record a net loss of $10,224,173 for the year, primarily due to reduced sales volume, increased

resources to commercialise the technology and delays in patient onboarding due to modifications of the

patient onboarding monitoring program to meet the needs of our customers and their patients.

Audit status

This Appendix 4E and the included financial information are based on financial statements which are in the

process of being audited, and the audited financial statements will be published in September 2024. As in prior

years, the independent auditor's report may contain an emphasis of matter reflecting a material uncertainty in

respect of going concern related to the raising of additional capital or alternative funding until the group is

supported by cash flows from operations. Despite this, the Directors are of the view that adoption of the going

concern basis of preparation of the financial statements continues to be appropriate.

Financial report

The following financial report included in this Appendix 4E does not include all notes of the type normally

included within the annual financial report and therefore cannot be expected to provide a complete

understanding of the financial performance, financial position and operating, financing and investing activities

of the consolidated entity as the full financial report. The financial report should be read in conjunction with

any public announcements made by Adherium Limited in accordance with the continuous disclosure

obligations of the ASX Listing Rules. The accounting policies applied are the same as those noted in the most

recent interim financial report and the previous annual report.

Adherium Limited

ABN 24 605 352 510

Consolidated Statement of Profit or Loss and Other Comprehensive Income

for the year ended 30 June 2024

The accompanying notes form part of this financial report.

Adherium Limited

ABN 24 605 352 510

Consolidated Statement of Financial Position as at 30 June 2024

The accompanying notes form part of this financial report.

Adherium Limited

ABN 24 605 352 510

Consolidated Statement of Changes in Equity

for the year ended 30 June 2024

The accompanying notes form part of this financial report.

Adherium Limited

ABN 24 605 352 510

Consolidated Statement of Cash Flows

for the year ended 30 June 2024

The accompanying notes form part of this financial report.

Adherium Limited

ABN 24 605 352 510

Notes to the condensed consolidated financial statements

for the year ended 30 June 2024

2. Segment Information

The Group has considered the requirements for segmental reporting as set out in AASB 8: Operating

Segments. The standard requires that operating segments are reported in a manner consistent with the

internal reporting provided to the chief operating decision-maker. The chief operating decision-maker has

been identified as the Chief Executive Officer. The Group has determined that one segment exists for the

Group’s Hailie® Smartinhaler®.

Adherium Limited

ABN 24 605 352 510

Adherium Limited

ABN 24 605 352 510

8. Events occurring after balance date

Subsequent to the balance sheet date, there was a cancellation of 1,773,540 Stock Appreciation Rights (SARs)

on 17 August 2024 for nil consideration. The cancellation was due to employment vesting conditions not met

due to the departure of the former CEO with a fair value of $146,317 calculated at the date of grant.

Funds totalling $570,000 for the subscription of 28,500,000 shares by Management and the Board as approved

at the EGM held on 21 June 2024 were received before 30 June 2024. However, the issue of these shares did

not occur until 1 July 2024.

There are no other events occurring after the balance sheet date which require disclosure or adjustment in the

financial statements.