TIDMTRLS
RNS Number : 2698A
Trellus Health PLC
23 May 2023
Trellus Health plc
("Trellus Health", the "Company" or the "Group")
Final Results
LONDON, U.K. AND NEW YORK, U.S. (23 May 2023): Trellus Health
plc (AIM: TRLS), which is commercializing a scientifically
validated, personalized resilience-based condition management
solution for chronic health conditions at their intersection with
mental health, announces its audited final results for the year
ended 31 December 2022.
Operational and financial highlights (including post-period
end)
-- Dr. Marla Dubinsky, Co-Founder of Trellus Health, appointed CEO in July 2022
-- Adopted new coaching-based condition management model,
facilitating rapid rollout of the Trellus Elevate(TM) Program
across the US and Canada
-- Launched Direct-to-Consumer ("D2C") model in July, focused on
early adopter program to kick-start early patient engagement and
support business-to-business-to-consumer ("B2B2C) engagement, with
partnerships secured with patient advocacy and groups and GI
platforms to provide widespread reach to GI (gastrointestinal)
patients.
-- Signed two B2B2C contracts with the Mount Sinai Health System
("Mount Sinai") in October 2022, making the Trellus IBD program
available to all Mount Sinai Health System employees; the second
contract was to make the Trellus IBD and IBS programs available to
eligible members of a large NY state labor union that provides
health services to its members through Mount Sinai
-- Signed an initial demonstration project with a New York-based
health insurance company with more than 1.8 million members to make
Trellus IBD program available as a health plan benefit to certain
members under its Medicaid managed care plan.
-- Launched Resilience Program for IBS (irritable bowel syndrome),
-- Several key appointments made, including:
o Dr Daniel Mahony, Senior Independent Non-Executive Director,
as Non-Executive Chairman
o Steve Young as Chief Financial Officer
o Aled Stevenson, previously US Executive VP of Sales and
Development, as Chief Operating Officer
o Traci Entel as Non-Executive Director
-- Net cash of $19.08m (31 December 2021: $32.0m) - reflecting
continued effective cash management and providing a runway into at
least 2025 (on conservative growth assumptions)
-- Adjusted EBITDA* loss of $8.1m, in line with expectations (FY 2021: $5.7m loss)
* Earnings before interest, tax, depreciation and amortization
adjusted for exceptional items
Dr. Marla Dubinsky, Chief Executive Officer of Trellus Health,
said: "I am very proud of the progress that Trellus Health has made
during the year and the milestones we have achieved. We are now
firmly in our commercialization phase with a market-ready solution,
our first B2B2C contracts secured and seeing increasing momentum
with prospective new partners, including major health plans.
"Our ongoing D2C offering continues to yield important data and
learnings allowing us to prove the scalability and impact of the
Trellus Elevate Program supporting and informing our B2B2C
engagement.
"I expect 2023 to be a pivotal year for Trellus Health as we
continue our B2B2C engagement to secure larger pilot agreements and
subsequently more expansive contracts and build the evidence base
of the cost savings provided by our solution, and further our goal
of changing the lives of as many people living with chronic
conditions as possible."
A copy of the investor presentation is available here:
https://trellushealth.com/investors/annual-interim-reports/
The Company will also host a live online presentation at 5pm BST
on 23 May 2023 through the digital platform Investor Meet Company .
Investors can sign up for free via:
https://www.investormeetcompany.com/trellus-health-plc/register-investor
A recording of the presentation and responses to the Q&A
sessions will also be available afterwards.
For further information please contact:
Trellus Health plc https://trellushealth.com/
Dr. Marla Dubinsky, Chief Executive Via Walbrook PR
Officer and Co-Founder
Dr. Daniel Mahony, Chairman
Singer Capital Markets (Nominated Tel: +44 (0)20 7496 3000
Adviser and Broker)
Aubrey Powell / Jen Boorer
Walbrook PR Tel: +44 (0)20 7933 8780 or
trellus@walbrookpr.com
Paul McManus / Sam Allen / Phillip Mob: +44 (0)7980 541 893 / 0 7748 651 727
Marriage / 07867 984 082
About Trellus Health plc ( www.trellushealth.com )
Trellus Health (LSE: TRLS) is the first resilience based digital
health company focused on the intersection of chronic illness and
mental health. Trellus Health integrates its proprietary
resilience-based methodology with the technology, tools, and team
to deliver a whole-person technology-enhanced experience that
results in relieving disease burden, building self-management
skills and promoting positive health behaviours that improves
outcomes and enables thriving in the face of a chronic condition.
Through its TrellusElevate(TM) connected health platform and
companion App, the company addresses both physical and behavioural
health together, in context, to improve outcomes and reduce
healthcare costs across the healthcare ecosystem.
The Company was founded by Mount Sinai faculty members Marla C.
Dubinsky, MD and Laurie Keefer, PhD, both with over 50 years of
combined clinical and research experience in IBD, IBS and
psychogastroenterology, respectively.
The Company was initially focused on inflammatory bowel disease
("IBD"), which includes the chronic incurable conditions of Crohn's
Disease and ulcerative colitis but has now added Irritable Bowel
Syndrome ("IBS"). Given the common emotional and mental health
struggles often experienced by individuals suffering from a variety
of chronic conditions, Trellus Health considers its approach to
have potential utility and demand across many conditions.
The TrellusElevate(TM) platform is the Company's proprietary
connected health platform that incorporates the GRITT(TM)
methodology and learnings on resilience from clinical research and
practice conducted at the Mount Sinai IBD Center for more than five
years. This proprietary, resilience-driven methodology has been
scientifically validated to demonstrate meaningful improvements in
patient outcomes, 71% reduction in Emergency Department (A&E)
visits, and 94% reduction in unplanned hospitalisations, which the
directors of the Company believe indicates the potential for
significant cost savings for healthcare payers. Patients with IBD
managed with the proprietary resilience methodology also
experienced a 49% reduction in required opioid use and a 73%
reduction in corticosteroid use 12 months following starting the
program which is a major indicator of improved health outcomes(2)
.
The Trellus IBD program described is based on technology
developed by Mount Sinai faculty and licensed to Trellus Health.
Mount Sinai and Mount Sinai faculty, including Marla Dubinsky, MD,
and Laurie Keefer, PhD, have a financial interest in Trellus
Health. Mount Sinai has representation on the Trellus Health Board
of Directors.
Shares in Trellus Health were admitted to trading on AIM in May
2021, under the ticker TRLS. For more information on Trellus
Health, visit: www.trellushealth.com
1) Source:
https://www.cdc.gov/chronicdisease/about/costs/index.htm )
2) Source:
https://www.sciencedirect.com/science/article/pii/S1542356521012258
)
CHAIRMAN'S STATEMENT
I am pleased to report on my first set of results as Chair of
Trellus Health, following my appointment in February 2023.
Overview
The year saw solid progress for the Company, with the team
adapting well to a strategic shift that has seen traction and
delivery of our resilience-based methodology, with Trellus Health
now a commercial-stage business with a market-ready solution and
our first paying customers now coming through. Our
Direct-to-Consumer ("D2C") offering of The Trellus Resilience
Training and Self-Management Solution (the "Trellus Program") was
launched during the year, with the positive initial data received
from it helping to secure our first
Business-to-Business-to-Consumer ("B2B2C") pilot and demonstration
contracts.
Trellus Health now offers a comprehensive GI (Gastrointestinal)
solution for both inflammatory bowel disease ("IBD") and irritable
bowel syndrome ("IBS"), which significantly increases the number of
patients who can be helped by our program. This was made
significantly easier by investment we have made in our program to
enable expansion into new indications in future, as we look to
deliver the Company's vision of a world where every person with a
chronic condition has hope and thrives.
We continue to target further projects with partners including
employers, regional and national health plans, and pharmaceutical
companies. Initially these will be smaller in scale to demonstrate
the improvements in patient outcomes and healthcare economics. The
data generated from these is already proving useful in our
continuing push to capture larger B2B2C pilots and demonstrations,
on which discussions are progressing positively, including with
major health plans.
A full summary of our progress and achievements made during the
year, as well as further detail on our expanded strategy, are
covered in the Chief Executive Officer's Review.
Board and Senior Management Team
During the year and post-period end, we announced several
changes to the Board and senior management team.
In July 2022, we appointed Trellus Health Co-Founder, Dr. Marla
Dubinsky, to the position of Chief Executive Officer. Marla is a
Professor of Pediatrics and Medicine at the Icahn School of
Medicine at Mount Sinai, New York, and has been engaged in IBD
clinical and translational research for over two decades. Marla's
standing in her field was underlined when she was awarded the 2022
Sherman Prize, a prestigious US national award that recognizes
individuals with an extraordinary track record of achievement, who
make exceptional and pioneering contributions to transform IBD
care.
At the same time as Marla's appointment as CEO in July 2022, we
appointed Aled Stevenson, previously US Executive VP of Sales and
Development, to the position of Chief Operating Officer. In August
2022, we announced the appointment of Steve Young, an experienced
Chief Financial Officer of AIM-listed companies, as our new CFO. We
also announced the appointment of Traci Entel, an experienced
management consultant and global HR executive, as a Non-Executive
Director in June 2022.
Post-period end, I was appointed Non-Executive Chairman from my
previous position of Senior Independent Non-Executive Director,
after Julian Baines stepped down from the Board following his
appointment as Executive Chairman of EKF Diagnostics Holdings plc
("EKF"). I would like to thank Julian again for his contribution to
Trellus Health, from his early involvement leading to investment
from EKF, through his guidance during our IPO in May 2021, and
beyond to our recent commercial progress.
We believe we have a Board and senior management team in place
with the necessary skills to execute our evolved commercial
strategy over the coming years, and I have been pleased to see the
progress made, particularly since Marla's appointment.
Outlook
I was pleased to see the progress made by the team during the
year with Trellus Health signing its first commercial B2B2C
contracts, despite difficult market conditions. Our evolved
strategy should continue to see us enrolling new D2C members with
our partners, who provide great reach into the US
gastroenterological community, while simultaneously scaling to
larger and more material B2B2C projects over time. I am confident
that this is the best strategy to commercialize and drive adoption
of the Trellus Program.
We expect our business model to exhibit significant scaling in
due course as we receive monthly recurring membership fees for each
user of the platform, and initial evidence suggests a strong
retention on the platform. At this early stage we expect our
smaller B2B2C projects to provide a modest number of users and
revenues. However, we are confident we can demonstrate to our
partners that we can meet or even exceed the cost savings indicated
in our initial projects and illustrate a clear and very substantial
return on investment (ROI). This should lead to the expansion of
our partnership agreements to make the Trellus Program available to
all their eligible members or employees. For this reason, our
smaller-scale demonstration projects, and the data we are already
generating, are key for the future of the business. The ongoing
dialogue with larger health plans has been encouraging as we look
to secure new pilot programs throughout North America, and we look
forward to providing updates on these discussions when appropriate.
These are expected to serve as catalysts to faster growth, both
from the expansion within the broader base of eligible members as
pilots are expanded, and from using the data from these projects in
discussions with new partners to begin new demonstration projects
with a greater number of patients.
Our management team continues to focus on good cash control and
our net cash position of $19.1 million as of 31 December 2022 is
sufficient to provide a runway into at least 2025 (on conservative
growth assumptions) , providing the Company with the resources
necessary to demonstrate further commercial traction and create
substantial shareholder value.
Dr. Daniel Mahony
Non-Executive Chairman
23 May 2023
CHIEF EXECUTIVE OFFICER'S REVIEW
Since my appointment as CEO in July 2022, we have made very good
progress, with the Company having successfully entered its
commercial phase following a refining of our strategy to best
deliver our resilience-driven connected health self-management
solution. I have been delighted with the various partnerships that
we have secured, with Trellus Health now ready to scale up into
larger B2B2C projects during 2023 and reach many more patients with
both our existing and potential new partners. It's been incredibly
fulfilling to see the feedback received from our early users and
seeing the Trellus Method truly change lives at an increasing
scale.
Commercialization strategy and progress
In July 2022, we commenced the rollout of our direct-to-consumer
(D2C) model, with a targeted approach focused on an early adopter
program to kick-start early patient engagement and drive awareness
and demand. The D2C model ran alongside our original
business-to-business-to-consumer (B2B2C) model, which focused on
regional and national health plans, employers, health systems, GI
provider networks and pharmaceutical companies.
We are using the data gained from our D2C users to validate the
use and outcomes of the Trellus Method and support B2B2C engagement
in larger project opportunities to enable the wider rollout of the
Trellus Program. Our strategy is to scale these larger projects and
demonstrate the cost savings that can be achieved by our partners
when using the Trellus Program, until a point where they make the
Program available to all their eligible members or employees. We
intend to continue our D2C offering for the foreseeable future, to
support those living with chronic gastrointestinal (GI) conditions
who may not have the Trellus Program covered by their employers or
health plans.
I have included an outline of our progress in both of our models
below.
1) D2C early adopters
We signed two agreements during the year that have expanded our
D2C reach to nationwide consumers. The first is a licensing
agreement with the Crohn's and Colitis Foundation, the largest
patient advocacy group for IBD in the US. We also signed a
collaboration agreement with GI OnDemand, a leading GI virtual
integrated care platform, which offers exclusive access to the
Trellus Program to over 16,000 GI professionals. These two channels
alone provide the broadest possible reach into the US
gastroenterological community, thus providing the most direct
channels to market via both patients and GI providers nationwide.
Importantly, we do not need to employ costly targeted marketing in
our D2C models, as our partners can make their own members aware of
the availability of the Trellus Program.
Our initial sponsorship program with patient advocacy groups,
Athletes vs Crohn's and Colitis and Connecting to Cure to cover the
costs of the program for 100 early adopters has fully enrolled and
now concluded. Our initial free membership offering was an
important step for Trellus as we were able to prove the scalability
and impact of our platform and services on engagement and outcomes.
As of February 1(st) , all D2C members are now paying a monthly
membership fee. We have over 130 DTC members currently
enrolled.
2) B2B2C model
In October 2022, we signed two contracts with the Mount Sinai
Health System ("Mount Sinai"). The first contract has seen Mount
Sinai make the Trellus IBD program available to, and paid for, as a
wellness benefit, to all Mount Sinai Health System employees,
focusing initially on IBD. The second contract was to make the
Trellus IBD and IBS programs available to eligible patients, again
as a wellness benefit, who are members of a large NY state labor
union, which provides health services to its members through Mount
Sinai. These two agreements became active in the early part of 2023
following the completion of technology integration and marketing
materials, and we are now starting to see enrollment from these
contracts.
Post-period end, we also secured an agreement for a
demonstration project of 50 initial patients with IBD with a New
York-based health insurer with more than 1.8 million members. This
B2B2C partnership saw the Trellus IBD program being made available
as a health plan benefit to certain members of the health plan
under its Medicaid managed care plan. Running for an initial
12-month term, the agreement can be extended by mutual agreement,
with patient enrolment having begun.
Our activities to date have provided useful data and insights
and served as the backbone for advanced discussions with a major
health plan for a pilot study at a greater scale than those
undertaken to date. As part of the project scope and design,
Trellus Health is undertaking enhancement of its IBD platform to
ensure that it can meet the requirements of the health plan's
members. While there is never certainty as to timing or outcome
from such negotiations, nor as to the speed of implementation
following contractual agreement, there appears to be serious intent
by the partner, and we are similarly motivated to pursue this
opportunity so that the Trellus solution begins to be offered at a
greater scale. The pilot study would be expected to begin to
generate meaningful data 6-12 months from implementation, which
could facilitate a faster and more substantive roll-out amongst the
health plan's sizeable volume of IBD members than that seen to
date.
User feedback
The initial outcomes of the program among our early adopter DTC
members have been highly positive. Midway through the Trellus IBD
Program:
-- 57% of members surveyed reported an increase in their
self-confidence in how to manage their condition.
-- 65% of members surveyed reported an increase in their
self-management skills and behavior change.
-- 74% of members surveyed reported an improvement in their emotional and mental wellbeing.
Expansion into Irritable Bowel Syndrome (IBS) and beyond
Trellus Health is targeting large, multi-billion-dollar
addressable markets for chronic conditions, where there is a
significant unmet need to provide whole-person, clinical, mental,
and behavioral support, empowering members by teaching them the art
of self-management and self-care.
While our initial focus was on IBD, in February 2023, we
launched the Trellus Method for IBS, ahead of schedule, using
existing resources. IBS is another chronic GI condition that has
significant similarities with IBD from a symptom burden and
emotional perspective, often having a significant impact on a
person's quality of life. IBS also has a much higher prevalence
than IBD, impacting c. 10% of the US population (c. 30m patients
for IBS compared to c. 3m for IBD). The Trellus Method for IBS is
now available through our D2C offering, as well as through the
expansion of our Mount Sinai labor union contract to offer our
program to members with IBD and IBS.
I am proud that we now offer a comprehensive GI solution
covering both IBD and IBS and have scope to improve the lives of
many more patients. We believe our solution can be used across many
other chronic conditions to deliver meaningfully improved
healthcare outcomes whilst reducing costs, and this expansion into
IBS has represented the first step.
Market Ready Solution
During the year, we continued investment into the
TrellusElevate(TM) platform to create a fully integrated and
seamless workflow. Our team, led by our CTO Jamey Hancock, has
worked incredibly hard to build a proprietary structure that gives
Trellus Health a competitive advantage, with inherent value as a
health management platform, as opposed to simply being a telehealth
or behavioral health mobile app.
Our proprietary platform provides coaching and engagement,
delivers digital health modules, and can identify those patients
likely to incur healthcare costs, with secure channels to manage
workflows, provide analytics and support the healthcare
professional's decision-making process. We are unique in this space
by integrating coordination, communication, and analytics in one
end-to-end platform. This provides expandability, flexibility,
scalability, and control for our team, allowing us to integrate new
features and adapt much faster than our peer group, and allows us
to scale to other GI and non-GI conditions.
We have invested in making Trellus an API (application
programming interface)-first platform; this means that we have full
control over the entire platform, and can seamlessly expand into
new indications, as we have done already with IBS. In contrast,
competitors may face issues when trying to perform similar
expansions, including compatibility issues, versioning problems,
and data mapping difficulties, making it a time-consuming and a
costly process.
Consequently, we have built our platform in a way that is
adaptable to any chronic condition, either directly or with
partners, giving flexibility and security to create value for our
customers and partners.
During the year, we made several other improvements to our
platform, including optimizing the IBD and IBS user experience
features and launching a new learning management system (LMS),
which allows us to receive feedback from care teams and clinicians.
We also increased the scalability of the resilience team through
implementing greater levels of automation, allowing us to handle a
larger volume of patients, and improved our registration process
and the speed of enrollment.
Maintained strong cash position and effective cash
management
During 2022, we took important steps to ensure careful cash
management and the reduction of cash burn despite the investments
made in our platform. Costs across staffing and consultancy fees,
development costs and other software and technology related
expenses have been reduced without any detriment to our growth
strategy . As a result, as of 31 December 2022, Trellus Health's
net cash position was $19.08 million, ahead of expectations,
providing a runway into 2025 on conservative growth assumptions and
giving confidence that we are well funded to deliver commercial
success and cash generation.
Financial Performance
The financial performance of the Company for the year ended 31
December 2022, continues to reflect the costs incurred with the
development phase of the TrellusElevate(TM) technology platform. In
the latter half of the year initial revenues have been received
from adopters of the platform.
Income Statement
The Company commenced revenue generation in the second half of
the year ending 31 December 2022 through paid sponsorships and
self-paying members that are early adopters of the platform. The
main components of the administrative expenses totalling US $8.8m
(2021: US $5.9m) were employee related costs of US $4.7m (2021: US
$4.3m) (excluding the share-based payment charge of US $0.06m
(2021: US $0.14m), professional costs of US $1.1m (2021: US $1.3m),
and other operating expenses of US $2.3m (2021: US $0.4). Total
depreciation and amortisation were $0.66m (2021: US $0.03m). Cost
savings have been identified and implemented across all areas of
the business.
The Company incurred a share-based payments charge of US $0.06m
(2021: US $ 0.14m). The full benefit will be spread over the
vesting periods, which is a weighted average of 2.3 years.
Statement of Financial Position and Cash Flow Statement
The principal asset of the Company is the development costs
relating to the TrellusElevate(TM) technology platform and software
purchased for US $6.7m (US $2.9m in 2022 and US $3.8m in 2021)
along with the exclusive licence acquired from Mount Sinai for the
GRITT(TM) technology, licensed for US $0.5m in 2021, together with
related equipment.
The cash position of the Company as of 31 December of US $19.1m
(2021: US $32.0m) remains strong, with expenditure in the second
half of 2022 reducing significantly compared to the first half as
cost control measures were implemented. Due to the depreciation in
the value of sterling against the US dollar over 2022, and the
substantial funds held in sterling at year end, a foreign exchange
loss of US $1.4m (2021: $1.7m) decreased the year end cash
balance.
Summary
I am very proud of the progress made by the Company. During the
year we adopted a new coaching-based condition management model ,
which has facilitated rapid rollout of our program across the US
and Canada. The early adopter D2C roll out was a very important
step forward, as it allowed us to generate important data, refine
the program and has provided the evidence we needed to demonstrate
that we can replicate and scale the exceptional outcomes that were
seen in the original research conducted at Mount Sinai.
Our first B2B2C contracts in late 2022 with Mount Sinai also
represented a great step forward for Trellus Health, and
enrollments have begun to take place from these post-period end.
Our agreement with the New York health plan is also now active with
patient enrollment having begun. We continue to have multiple
meetings with senior level management and are actively developing
project scope with large health plans, employers as well as
pharmaceutical companies and we look forward to providing updates
on these discussions when appropriate.
With the clear progress made in both D2C and B2B2C, as well as
our IBS expansion, investment made in the TrellusElevate(TM)
platform and a healthy cash runway, we are firmly on the path to
deliver further commercial traction through larger B2B2C pilot
agreements and subsequently more expansive contracts, and
ultimately change the lives of more patients living with chronic
conditions. 2023 will be an important year for Trellus Health as we
continue our strategy of securing material revenues via B2B2C
agreements and demonstrating the value of our platform to our
existing partners. I would like to thank our employees,
shareholders, and partners for their support during the year.
Dr. Marla Dubinsky
Chief Executive Officer and Co-Founder
23 May 2023
Consolidated Income Statement and Other Comprehensive Income
for the year ended 31 December 2022
2022 2021
Notes $'000 $'000
----------------------------------------------------- ---------- ------------------- -------------------
Revenue 18 25
Cost of Sales - -
Gross Profit 18 25
Administrative Expenses (8,828) (5,927)
------------------------------------------------------- ---------- ------------------- -------------------
Operating Loss (8,810) (5,902)
Depreciation, amortization and impairment 659 32
Share-based payments 8 62 139
EBITDA before exceptional items and share-based
payments (8,089) (5,731)
Finance Income - -
Finance Costs - -
------------------------------------------------------- ---------- ------------------- -------------------
Loss before Income Tax (8,810) (5,902)
Income Tax Charge 3 - -
------------------------------------------------------- ---------- ------------------- -------------------
Loss for the Year (8,810) (5,902)
------------------------------------------------------- ---------- ------------------- -------------------
Loss per share
Basic and Diluted (US $
cents) 4 (0.05) (0.04)
------------------------------------------------------- ---------- ------------------- -------------------
The results reflected above relate to continuing operations. The
comparative period reflects the year ended 31 December 2021.
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2022
2022 2021
$'000 $'000
---------------------------------------------------- ------------------- -------------------
Loss for the year (8,810) (5,902)
Items that may be subsequently reclassified to
profit and loss
Currency translation differences (1,434) (1,725)
Total comprehensive loss for the year (10,244) (7,627)
------------------------------------------------------ ------------------- -------------------
Consolidated Statement of Financial Position
as at 31 December 2022
2022 2021
Notes $'000 $'000
--------------------------------------------- ---------- ---------------- ----------------
Assets
Non-Current Assets
Property, plant, and equipment 5 58 82
Intangible Assets 6 6,488 4,280
Total Non-Current Assets 6,546 4,362
--------------------------------------------- ---------- ---------------- ----------------
Current Assets
Trade receivables and prepaid expenses 283 451
Cash and cash equivalents 19,085 31,982
Total Current Assets 19,368 32,433
--------------------------------------------- ---------- ---------------- ----------------
Total Assets 25,914 36,795
--------------------------------------------- ---------- ---------------- ----------------
Share Capital and Equity
Share Capital 7 137 137
Share Premium 43,387 43,387
Share-based Payment Reserve 8 201 139
Foreign Currency Reserves (3,159) (1,725)
Retained Earnings (15,474) (6,664)
Total Equity 25,092 35,274
--------------------------------------------- ---------- ---------------- ----------------
Liabilities
Current Liabilities
Trade and other payables 822 1,521
Total Liabilities 822 1,521
--------------------------------------------- ---------- ---------------- ----------------
Total Equity and Liabilities 25,914 36,795
--------------------------------------------- ---------- ---------------- ----------------
Consolidated Statement of Cash Flows
for the year ended 31 December 2022
2022 2021
Notes $'000 $'000
------------------------------------------------ ---------- ---------------- ----------------
Cash Flow from Operating Activities
Loss for the period (8,810) (5,902)
Adjustments for:
Depreciation and amortisation 5,6 536 32
Impairment of Intangibles 6 123 0
Share-based payment expense 8 62 139
------------------------------------------------ ---------- ---------------- ----------------
(8,089) (5,731)
Decrease/(Increase) in trade and
other receivables 168 (440)
(Decrease)/Increase in trade and
other payables (699) 1,401
Net cash outflow from operating
activities (8,620) (4,772)
------------------------------------------------ ---------- ---------------- ----------------
Cash Flow from Investing Activities
Purchases of plant, property and
equipment 5 - (81)
Purchases of intangible assets 6 (2,908) (3,640)
------------------------------------------------ ---------- ---------------- ----------------
Net cash outflow from investing
activities (2,908) (3,721)
------------------------------------------------ ---------- ---------------- ----------------
Cash Flow from Financing Activities
Net proceeds from issue of ordinary
shares 7 - 38,516
Net cash Inflow from financing activities - 38,516
------------------------------------------------ ---------- ---------------- ----------------
Net (Decrease)/Increase in Cash
and Cash Equivalents (11,528) 30,023
------------------------------------------------ ---------- ---------------- ----------------
Cash and Cash Equivalents at the
Beginning of the Year 31,982 3,684
Exchange loss on Cash and Cash Equivalents (1,369) (1,725)
Cash and Cash Equivalents at the
End of the Year 19,085 31,982
------------------------------------------------ ---------- ---------------- ----------------
Consolidated Statement of Changes in Equity
Foreign
Share Share Premium Other Currency Retained
Capital Account Reserves Reserve Earnings Total
Consolidated $'000 $'000 $'000 $'000 $'000 $'000
-------------------- --------------- ---------------------------------- ------------------- ----------------------------- ------------------ ------------------
At 1 January
2021 12 4,996 - - (762) 4,246
-------------------- --------------- ---------------------------------- ------------------- ----------------------------- ------------------ ------------------
Comprehensive
Income
Loss for the
year (5,902) (5,902)
Currency
translation
differences - - - (1,725) - (1,725)
Total
Comprehensive
Loss for the
Year - - - (1,725) (5,902) (7,627)
-------------------- --------------- ---------------------------------- ------------------- ----------------------------- ------------------ ------------------
Issue of Share
Capital 61 38,455 - - - 38,516
Share capital
reconstruction 64 (64) - - - -
Share based
payment
reserve - - 139 - - 139
Balance at 31
December
2021 and
At 1 January
2022 137 43,387 139 (1,725) (6,664) 35,274
-------------------- --------------- ---------------------------------- ------------------- ----------------------------- ------------------ ------------------
Comprehensive
Income
Loss for the
year - - - - (8,810) (8,810)
Currency
translation
differences - - - (1,434) - (1,434)
-------------------- --------------- ---------------------------------- ------------------- ----------------------------- ------------------
Total
Comprehensive
Loss for the
Year - - - (1,434) (8,810) (10,244)
-------------------- --------------- ---------------------------------- ------------------- ----------------------------- ------------------ ------------------
Share Based
Payment
Reserve - - 62 - - 62
Balance at 31
December
2022 137 43,387 201 (3,159) (15,474) 25,092
-------------------- --------------- ---------------------------------- ------------------- ----------------------------- ------------------ ------------------
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2022
1. General information and basis of presentation
Trellus Health plc is a public limited company incorporated in
the United Kingdom (Registration Number 12743489), which is listed
on the AIM market of the London Stock Exchange. The address of the
registered office is Avon House, 19 Stanwell Road, Penarth, CF64
2EZ.
The principal activity of the Company is the delivery of
resilience-driven care for complex chronic conditions.
The financial information within this preliminary announcement
is extracted from the Group's consolidated financial statements for
the year ended 31 December 2022, which were approved by the Board
of Directors on 23 May 2023. This financial information does not
constitute statutory accounts within the meaning of sections 434(3)
and 435(3) of the Companies Act 2006 or contain sufficient
information to comply with the disclosure requirements of UK
adopted International Accounting Standards (IFRS).
The Group's consolidated financial statements for the year ended
31 December 2022 have been prepared in accordance with UK adopted
International Accounting Standards (IFRS) and with the requirements
of the Companies Act 2006 as applicable to companies reporting
under those standards. The Company's auditor, Crowe U.K. LLP, has
given an unqualified report on the consolidated financial
statements for the year ended 31 December 2022. The auditor's
report did not include reference to any matters to which the
auditor drew attention without qualifying its report and did not
contain any statement under section 498 of the Companies Act 2006.
The consolidated financial statements will be filed with the
Registrar of Companies, subject to their approval by the Company's
shareholders at the Company's next Annual General Meeting in June
2023.
Statutory accounts for the year to 31 December 2021 have been
delivered to the Registrar of Companies.
Certain statements in this announcement constitute
forward-looking statements. Any statement in this announcement that
is not a statement of historical fact including, without
limitation, those regarding the Company's future expectations,
operations, financial performance, financial condition and business
is a forward-looking statement. Such forward-looking statements are
subject to risks and uncertainties that may cause actual results to
differ materially. These risks and uncertainties include, amongst
other factors, changing economic, financial, business or other
market conditions. These and other factors could adversely affect
the outcome and financial effects of the plans and events described
in this announcement and the Company undertakes no obligation to
update its view of such risks and uncertainties or to update the
forward-looking statements contained herein. Nothing in this
announcement should be construed as a profit forecast.
2. Significant accounting policies
Going concern
The Group is in the development phase of its business and has
only generated revenues related to implementation services and
early patients in pilot scheme. At December 2022 the Group has
available cash resources of $19m.
The Board has considered the impact of the ongoing
Russia/Ukraine war and rising inflation. There has been minimal
impact on the Company to date and the Board anticipates minimal
on-going impact, due to the nature of the business.
The Directors have prepared cash flow forecasts for the Group
for a review period of over 12 months from the date of approval of
this historical financial information. These forecasts reflect an
assessment of current and future market conditions and their impact
on the Group's future cash flow performance.
The forecasts have been sensitised for additional costs which
may be incurred in the review period. In the sensitised scenario,
the forecasts indicate the Group would still have sufficient cash
to continue as a going concern.
Having considered the points above, the Directors remain
confident in the long-term future prospects for the Group, and
their ability to continue as a going concern for the foreseeable
future. They therefore adopt the going concern basis in preparing
the historical financial information of the Group.
While the financial information included in this preliminary
announcement has been prepared in accordance with the recognition
and measurement criteria of IFRS, this announcement does not itself
contain sufficient information to comply with IFRSs. The Company
will publish its full annual report containing financial statements
for the year ended 31 December 2022 before the end of May 2023,
together with a notice to shareholders of the Company's Annual
General Meeting ("AGM") which will be available on the Company's
website at www.trellushealth.com and at the Company's registered
office at Avon House, 19 Stanwell Road Penarth CF64 2EZ. The AGM
will be held in June 2023, with further information to be notified
at the time of the availability of the full annual report.
3. Tax expenses
2022 2021
$'000 $'000
------------------------------------ ------------------------ ------------------------
Current tax expense
Current tax on loss for the year - -
--------------------------------------- ------------------------ ------------------------
Total Current Tax - -
------------------------------------- ------------------------ ------------------------
Deferred Tax Asset
On losses generated in the year - -
--------------------------------------- ------------------------ ------------------------
Total Deferred Tax - -
------------------------------------- ------------------------ ------------------------
The reasons for the difference between the actual tax charge for
the year and the standard rate of corporation tax in the United
Kingdom applied to profits for the year are as follows:
2022 2021
$'000 $'000
Loss for the period (8,810) (5,902)
------------------------------------------------ ------------ ------------
Tax using the Company's domestic tax
rate of 19% (1,674) (1,121)
Expenses not deductible for tax purposes 31 76
Depreciation, amortisation and impairment
that are not deductible for tax purposes 117 6
Unrecognised deferred tax assets 1,526 1,039
------------------------------------------------ ------------ ------------
Total tax expense - -
------------------------------------------------ ------------ ------------
The unrecognised deferred tax relates to two elements: the
unrecognised deferred tax arising on share-based payments of US
$201,000 and unrecognised deferred tax on taxable losses of US $4
million (2021 - US $1.9m), based on total taxable losses carried
forward of US $19m (2021 - US $10m). No deferred tax asset is
recognised for these losses due to early stage in the development
of the Group's activities. The losses do not expire but can only be
used against trading profits from the same trade.
4. Loss per share
2022 2021
---------------------------------- ---------------- ----------------
Numerator $'000 $'000
Loss for the period (8,810) (5,902)
Denominator Number Number
Weighted average # of shares 161,508,333 131,734,028
------------------------------------ ---------------- ----------------
Resulting Loss per Share ($) (0.05) (0.04)
------------------------------------ ---------------- ----------------
The Company has one category of potential ordinary share, being
share options (see Note 8). The potential shares were not dilutive
in the period as the Group made a loss per share in line with IAS
33.
5. Property, Plant and equipment
All assets are equipments
US $'000
-------------------------------------------- -------- -------------------------
Cost
At 1 January 2021 12
Additions 81
At 31 December 2021 93
-------------------------
Depreciation
At 1 January 2021 (1)
Charge for the year (10)
At 31 December 2021 (11)
-------------------------
Net Book value at 31 December 2021 82
---------------------------
Cost
At 1 January 2022 and 31 December 2022 93
---------------------------
Depreciation
At 1 January 2022 (11)
Charge for the year (24)
At 31 December 2022 (35)
-------------------------
Net Book value at 31 December
2022 58
-------------------------
6. Intangible assets
Group Group Group
Software Development Licence Total
US $'000 US $'000 US $'000
----------------------------------- ------------------------- ------------------------- ----------------
Cost
At 1 January 2021 662 - 662
Additions 3,140 500 3,640
At 31 December 2021 3,802 500 4,302
------------------------- ------------------------- ----------------
Depreciation
At 31 January 2021 - - -
Charge for the year (22) - (22)
------------------------- -------------------------
At 31 December 2021 (22) - (22)
------------------------- ------------------------- ----------------
Net Book Value at 31 December
2021 3,780 500 4,280
------------------------- ------------------------- ----------------
Cost
At 1 January 2022 3,802 500 4,302
Additions 2,908 - 2,908
Foreign currency difference - (65) (65)
At 31 December 2022 6,710 435 7,145
------------------------- ------------------------- ----------------
Depreciation
At 31 January 2021 (22) - (22)
Charge for the year (471) (42) (513)
Impairment charge (122) - (122)
------------------------- -------------------------
At 31 December 2022 (615) (42) (657)
------------------------- ------------------------- ----------------
Net Book Value at 31 December
2022 6,095 393 6,488
------------------------- ------------------------- ----------------
The licence was acquired from Icahn School of Medicine at Mount
Sinai on 19 August 2021 for rights to intellectual property and
data to support the GRITT technology.
Capitalised development costs in relation to the Group's
software platform has been reviewed for indicators of impairment.
No indicators of impairment were identified although an impairment
charge of $122,000 was recognised in the period in relation to
specific aspects of capitalised expenditure considered to have no
value in use.
7. Share capital
2022 2022 2021
Number $'000 $'000
Ordinary Shares of GBP0.0006 each 161,508,333 137 137
--------------------------------------- ---------------- ---------- ----------
8. Share-based payment
On 1 January 2021, the Board adopted the Share Option Plan to
incentivise certain of the Group's employees and Directors. The
Share Option Plan provides for the grant of both EMI Options and
non-tax favoured options. Options granted under the Share Option
Plan are subject to exercise conditions as summarised below.
The Share Option Plan has a non-employee sub-plan for the grant
of Options to the Company's advisors, consultants, non-executive
directors, and entities providing, through an individual, such
advisory, consultancy, or office holder services and a US sub-plan
for the grant of Options to eligible participants in the Share
Option Plan and the Non-Employee Sub-Plan who are US residents and
US taxpayers.
The options vest equally over twelve quarters from the grant
date or 25% after twelve months and over eight quarters equally
thereafter. If options remain unexercised after the date one day
before the tenth anniversary of grant such options expire. The
options are subject to exercise conditions such that they shall,
subject to certain exceptions, vest in instalments over the three
years immediately following the date of grant, which vesting shall
accelerate in full in the event of a change of control of the
Company.
2022 2021
Weighted Weighted
Average average
Exercise 2022 exercise 2021
price Number price Number
($) ($)
Outstanding at 1 January 0.35 3,580,000 - -
Granted during the period 0.48 1,640,000 0.35 3,730,000
Exercised during the period - - 0.20 (33,333)
Expired during the period 0.44 (1,965,000) 0.20 (116,667)
--------------------------------- ------------- ---------------- ------------- --------------
Outstanding at 31 December 0.39 3,255,000 0.35 3,580,000
--------------------------------- ------------- ---------------- ------------- --------------
Exercisable at 31 December 0.25 1,973,125 0.23 665,833
--------------------------------- ------------- ---------------- ------------- --------------
The exercise price of options outstanding at 31 December 2022
ranged between 20 US cents and 68 cents and their weighted average
contractual life was 2.3 years.
The weighted average fair value of each option granted during
the year was $0.38 (2021: $0.32).
The fair value of each share option granted in 2022 has been
estimated using a Black-Scholes model and ranges from 1 US cent to
10 US cent. The inputs into the model are a share prices of 17 US
cent, 23 US cent, 26 US cent and 43 US cent, exercise prices of 48
US cent, expected volatility of 50%, no expected dividend yield,
contractual life of between 2.9 and 1.9 years and a risk-free
interest rate of 1.25% and 2.25%.
Related Party Transactions
9.
Outside of the remuneration previously disclosed in the report
of the remuneration committee on page 23, the Group received a $10k
reimbursement from Mount Sinai Hospital during 2022 for member set
up in connection with the related party contracts announced in
October 2022. There has been no revenue received in 2022 in
connection with these two related party contracts, with or via
Mount Sinai Hospital. The amount owed as at 31 December 2022 is $0
(2021: $0). The Group also paid a $100k management fee to Mount
Sinai Hospital during 2022, the amount outstanding at 31 December
2022 is $0 (2021: $0).
10. Events after the reporting date
There have been no events subsequent to the period end that
require disclosure in these financial statements.
11. Dividends
There were no dividends paid or proposed by the Company in
either year.
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END
FR UURUROOUVUUR
(END) Dow Jones Newswires
May 23, 2023 02:00 ET (06:00 GMT)
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