Perimeter Medical Imaging AI Reports Second Quarter 2022 Financial Results and Provides Corporate Update

Rhea-AI Summary

Perimeter Medical Imaging AI (TSX-V:PINK, OTC:PYNKF) reported its second quarter results on August 24, 2022. The company anticipates 10-20 commercial installations for its S-Series OCT device, reflecting increased market opportunities. Operating expenses amounted to $6.3 million, up from $3.1 million a year prior, while the net loss narrowed to $366,296 compared to $3.2 million in Q2 2021. Cash and cash equivalents stood at $44.97 million. The company is progressing in its pivotal clinical trial for the B-Series OCT system, with seven out of eight sites activated.

Positive

• Narrowed net loss of $366,296 in Q2 2022 compared to $3,238,722 in Q2 2021.
• Increased cash reserves of $44.97 million as of June 30, 2022.
• Strengthened leadership team with key appointments.

Negative

• Operating expenses rose to $6.32 million from $3.06 million year-over-year.
• Lengthened sales cycle due to larger average deal size and procurement processes.

Conference Call/Webcast Today at 5 pm ET

TORONTO & DALLAS--(BUSINESS WIRE)-- Perimeter Medical Imaging AI, Inc. (TSX-V:PINK)(OTC:PYNKF) (FSE:4PC) (“Perimeter” or the “Company”) – a medical technology company driven to transform cancer surgery with ultra-high-resolution, real-time, advanced imaging tools to address high unmet medical needs – today reported financial results for its second quarter ended June 30, 2022 and provided a corporate update.

Key Highlights

• The Company broadens the range of projected commercial installations to 10-20 units for the full year, reflecting increased volatility as the size of our average opportunity grows.
• The first commercial S-Series OCT installation in the state of California is completed.
• Company strengthens its leadership team with new additions to its Board of Directors and management.

Jeremy Sobotta, Perimeter’s Chief Executive Officer stated, “With several important milestones reached this quarter, momentum is building across all areas of our business. We remain highly confident about the market reception of our technology, including a pipeline where the average deal size is growing and exceeding our expectations. However, this creates a lengthened sales cycle as we navigate the broader procurement processes, and as such, we have expanded the range for our anticipated commercial installations due to that uncertainty.”

Mr. Sobotta continued, “In addition, patient recruitment continues in our multi-center pivotal clinical trial, which is evaluating our ‘next-gen’ ImgAssist AI technology as part of our B-Series OCT system. We have now activated seven of the eight sites and are pleased with the progress made despite the staffing shortages our clinical partners are experiencing. We are grateful to work with such engaged investigators who partner with us in overcoming these challenges because of the value they see in the technology.”

Mr. Sobotta added, “We also continue to attract top talent to Perimeter and are pleased to add the expertise of Anantha Kancherla and Chris Scott to our board of directors and senior leadership team, respectively. With a strong balance sheet and our driven team, Perimeter is well positioned to execute on our goal of transforming cancer surgery by advancing the standard of care, improving patient outcomes, and reducing healthcare costs with the use of our innovative technologies.”

Quarterly Updates

• On August 3, 2022, Perimeter announced its first commercial placement of an S-Series OCT device in the state of California at Pavilion Surgery Center, an affiliate of St. Joseph Hospital. The device will be used under the direction of Michele Carpenter, MD, a breast surgeon who performs breast conservation and other surgeries at Pavilion Surgery Center and marks the first commercial use of the technology in a standalone, ambulatory setting.
• Patient recruitment continues into a multi-center, randomized two-arm pivotal clinical trial evaluating Perimeter B-Series OCT combined with proprietary ImgAssist AI software. Led by Principal Investigator, Dr. Alastair Thompson at the Baylor College of Medicine in Houston, TX, seven of the eight clinical sites have now been activated.
• In late June 2022, Perimeter announced the appointment of Anantha Kancherla to the Board of Directors. Mr. Kancherla has significant experience in the field of artificial intelligence, including in his current role as Engineering Director at Meta, where he leads its AI platform.
• In early June 2022, Perimeter announced the appointment of Chris Scott as Chief Financial Officer. Mr. Scott brings extensive experience in finance and accounting, as well as operations at a public company within the MedTech sector.

Summary of Second Quarter 2022 Financial Results

All of the amounts are expressed in Canadian dollars unless otherwise indicated and are presented in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board applicable to the preparation of interim financial statements, including International Accounting Standard 34, Interim Financial Reporting.

Operating expenses for the three months ended June 30, 2022 were $6,322,619 compared to $3,056,431 during the same period in 2021.

Net finance income for the three months ended June 30, 2022 was $3,787,518, and included a $3,850,838 gain from the revaluation of the warrant liability, compared to finance costs of $(206,952) for the three months ended June 30, 2021.

Net loss for the three months ended June 30, 2022 was $(366,296) compared to $(3,238,722) for the same period in 2021.

For the six months ended June 30, 2022, cash used in operating activities was $(9,652,458).

As of June 30, 2022, cash and cash equivalents were $44,966,273.

For detailed financial results, please see Perimeter’s filings at www.sedar.com and on the company’s website at https://ir.perimetermed.com/.

Company Outlook

Perimeter’s sales and marketing efforts will continue to focus on placing its commercially available, flagship Perimeter S-Series OCT at leading hospitals where key opinion leaders can champion this innovative technology, with the goal of reaching an S-Series install base of 10 to 20 units by the end of 2022. In parallel, Perimeter’s clinical team will focus on the continued enrollment of patients and onboarding of healthcare institutions in the ongoing pivotal trial evaluating its next-gen investigational Perimeter B-Series OCT with ImgAssist AI when used in breast lumpectomy procedures, with the goal of gathering data from over 330 patients across eight sites and completing enrollment in early 2023.

Conference Call

The Company will host a conference call and live audio webcast today, August 24, 2022, at 5:00 pm Eastern Time to discuss its second quarter results and to provide a corporate update. To participate in the call, please dial 1-877-704-4453, or 1-201-389-0920 for international callers, and provide conference ID number 13732303. The call will also be broadcast live online through a listen-only webcast, which will be posted on the Investors section of the Company's website. The webcast will be archived on the Company's investor relations webpage for at least 90 days. A telephonic playback of the conference call will be available for 14 days after the conference call by calling 1-844-512-2921 or 1-412-317-6671 from abroad and referencing conference ID 13732303. The above listed dates and times are subject to change.

About Perimeter Medical Imaging AI, Inc.

Based in Toronto, Canada and Dallas, Texas, Perimeter Medical Imaging AI (TSX-V:PINK) (OTC:PYNKF) (FSE:4PC) is a medical technology company driven to transform cancer surgery with ultra-high-resolution, real-time, advanced imaging tools to address areas of high unmet medical need. Available across the U.S., our FDA-cleared Perimeter S-Series OCT system provides real-time, cross-sectional visualization of excised tissues at the cellular level. The breakthrough-device-designated investigational Perimeter B-Series OCT with ImgAssist AI represents our next-generation artificial intelligence technology that is currently being evaluated in a pivotal clinical trial, with support from a grant of up to US$7.4 million awarded by the Cancer Prevention and Research Institute of Texas. The company’s ticker symbol “PINK” is a reference to the pink ribbons used during Breast Cancer Awareness Month.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

This news release contains statements that constitute “forward-looking information” within the meaning of applicable Canadian securities legislation. In this news release, words such as “may,” “would,” “could,” “will,” “likely,” “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” and similar words and the negative form thereof are used to identify forward-looking statements. Forward-looking information may relate to management’s future outlook and anticipated events or results and may include statements or information regarding the future financial position, business strategy and strategic goals, competitive conditions, research and development activities, projected costs and capital expenditures, research and clinical testing outcomes, taxes and plans and objectives of, or involving, Perimeter. Without limitation, estimates regarding the number of Perimeter S-Series OCT instillations in 2022; information regarding the potential benefits of Perimeter S-Series OCT, Perimeter B-Series OCT, and Perimeter ImgAssist; Perimeter’s expected marketing activities and the expected details regarding Perimeter’s ongoing clinical trials, including the estimated completion date of enrollment, are forward-looking information. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, any particular result will be achieved. No assurance can be given that any events anticipated by the forward-looking information will transpire or occur. Forward-looking information is based on information available at the time and/or management’s good-faith belief with respect to future events and are subject to known or unknown risks, uncertainties, assumptions, and other unpredictable factors, many of which are beyond Perimeter’s control. Such forward-looking statements reflect Perimeter’s current view with respect to future events, but are inherently subject to significant medical, scientific, business, economic, competitive, political, and social uncertainties and contingencies. In making forward-looking statements, Perimeter may make various material assumptions, including but not limited to (i) the accuracy of Perimeter’s financial projections; (ii) obtaining positive results from trials; (iii) obtaining necessary regulatory approvals; and (iv) general business, market, and economic conditions. Further risks, uncertainties and assumptions include, but are not limited to, those applicable to Perimeter and described in Perimeter’s Management Discussion and Analysis for the year ended December 31, 2021, which is available on Perimeter’s SEDAR profile at www.sedar.com, and could cause actual events or results to differ materially from those projected in any forward-looking statements. Perimeter does not intend, nor does Perimeter undertake any obligation, to update or revise any forward-looking information contained in this news release to reflect subsequent information, events, or circumstances or otherwise, except if required by applicable laws.

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Chris Scott

Chief Financial Officer

or

Jodi Regts

Perimeter Medical Imaging AI, Inc.

Direct: 469-743-1834

Toll-free: 888-988-7465 (PINK)

Investors: investors@perimetermed.com

Media: media@perimetermed.com

Source: Perimeter Medical Imaging AI, Inc.

FAQ

What were Perimeter Medical Imaging AI's Q2 2022 financial results?

Perimeter reported a net loss of $366,296 and operating expenses of $6.32 million for Q2 2022.

What is the cash position of Perimeter Medical Imaging AI as of June 30, 2022?

The company had cash and cash equivalents of $44.97 million.

What is the target for S-Series OCT installations in 2022?

Perimeter aims for 10-20 S-Series OCT installations by the end of 2022.

How many sites are activated in Perimeter's pivotal clinical trial?

Seven out of eight sites are activated for the pivotal clinical trial evaluating the B-Series OCT system.