In-Depth interview with MD Philip Daffas, page-12

Quarterly Update: December 2018 PainChek®
Transforming Pain Management

The company and technology have progressed from a concept to a market reality in less than two years, generating rapid initial sales and receiving market acceptance as a new solution for a large, global unmet clinical problem. In the process, we have validated the initial enterprise (B2B) business model in Australia, built a strong sales pipeline for 2019 and established a base for international expansion during the next 12 months. In parallel, new projects including the children’s App continue to make positive progress.
PainChek’s initial market entry has been focused on dementia care within the Australian Residential Aged Care (RAC) market. In Australia, there are 950 RAC operators who manage a total of 2,700 facilities with 210,000 resident beds. There are 400,000 people living with dementia in Australia of which 115,000 are within Residential Aged Care(1).

• All key measures continue to increase positively with revenue, contracted beds and assessments growing significantly through the year and quarter on quarter.

• The mix of RAC clients is well balanced between large, mid and small sized RAC’s and the pipeline for new clients continues to increase. In addition, the two annual contracts that were up for renewal during the past quarter were both renewed for a further year under the same terms.

• The December 31st Annualised Recurring Revenue (ARR) of $143,790 excludes the proposed Allity Aged Care full roll out planned for CY2019 (see ASX joint release January 16th 2019) which will increase the number of contracted beds to more than 5,000 and, when implemented, increases ARR to approximately $310,000. This will represent 2.5% penetration of the beds in the Australian RAC market.