COMPUMEDICS LIMITED — Annual Report 2020

Sep 30, 2020

ANNUAL REPORT

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• SLEEP DIAGNOSTICS & TREATMENT

• NEURO DIAGNOSTICS

• BRAIN RESEARCH

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O V E R T H I RT Y
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• ULTRASONIC BLOOD FLOW MONITORING

• MEDICAL INNOVATIONS

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02 Who is Compumedics? 03 Financial Summary

• 04 Chairman’s Address 13 Global Markets

• 14 Core Business

• 16 Clients and Core Products 17 Strategic Growth Platforms 21 A Focused Strategy in Action 23 Board of Directors 24 Senior Management

Compumedics Limited ABN 95 006 854 897

Annual General Meeting Thursday, 19th November, 2020 at 10.30am

To be held at: Compumedics Limited 30-40 Flockhart Street Abbotsford Victoria 3067 and Virtually

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Who is Compumedics?

Since 1987 Compumedics has grown into a company:

with 130 employees across seven locations, Melbourne, Australia (Home Office), Charlotte, NC, USA, Hamburg, Dresden and Singen, Germany, Paris, France and Daejeon, South Korea.

which listed on the ASX on Dec 21, 2000.

that has generated more than $660m in revenues since listing of which over $550m have been export revenues

All $ = A$ unless otherwise specified

FINANCIAL SUMMARY

ALL FIGURES IN A$M UNLESS OTHERWISE STATED	TREND	2020	2019
Revenue for continuing operations		35.1	41.5
Earnings before interest, income tax, depreciation and amortisation(EBITDA) (underlying)		2.3	5.9
Earnings before interest and income tax(EBIT) (underlying)		0.5	5.4
Net operating profit after tax (NPAT)(underlying)		1.8	4.0
Research and development costs as a percentage of operating revenue		11	13
Total assets		35.5	38.7
Shareholders funds		21.8	27.3
Net tangible assets per share (cents)		10.3	11.6
Weighted average number of shares (million)		177	177
Earnings per share (basic) (cents)		0.1	2.3
Earnings per share based on earnings before interest, tax, depreciation and amortisation (cents)		0.1	2.3

• The FY20 net profit after tax (NPAT) (underlying) was down to AUD1.8M compared to AUD4.0M for the FY19. Earnings before interest, tax, depreciation and amortisation (EBITDA) (underlying) was AUD2.3M compared to AUD5.9M for the FY19.

• Revenues shipped and invoiced decreased by 15.5% to AUD35.1M over the previous financial year. Sales orders taken were down by 13.5% to AUD35.2M, for the core business compared to the previous financial year. The decrease in revenues primarily reflects the impact of containment measures around the world in relation to the COVID-19 Pandemic in the second half of FY20.

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Dear Compumedics investors, colleagues and business partners,

On behalf of the Board, management and the Compumedics team, I present to you the following highlights in the results contained within the Compumedics 2020 Annual Report.

Firstly, on behalf of the Board, management and the Compumedics team I would like to extend our thoughts of care and sympathy to all those who have suffered or been adversely impacted during this allencompassing COVID-19 pandemic.

Secondly, whilst our overall performance has obviously been impacted by the lockdown and other adverse events impacting us all, we are also highly conscious and grateful for the continued positive support of those individuals and organisations who have rallied behind Compumedics’ continued and relentless drive forward. Moreover, in the year past, in preparation for a rebound in the years ahead, we have continued to intensify our focus on not only prevailing through these current challenges, but also consolidating our position to build an even stronger growth-oriented business. Compumedics will, as demonstrated during all past global challenges, navigate through this pandemic and emerge a stronger, more resilient and valuable company from both an economic and job creation perspective, but also in accordance to our originating time-held values for people, ethics and contribution.

Thirdly, and finally before we review the year in progress and the journey ahead, I would like to take this opportunity to acknowledge and thank the ongoing support of our clients, Compumedics people, the many unsung heroes such as families, partners, colleagues and friends, our Governments, business partners, suppliers, and of course

our shareholders and other stakeholders, enabling us to prevail through this extremely challenging COVID-19 pandemic.

The COVID 19 pandemic has led to the company temporarily retracting its prior financial performance guidance. Revenue declined 15% to $35.1m for the year ended 30 June 2020, whilst net profit after tax (NPAT) on an underlying basis was down 55% to $1.8m compared to $4.0m for FY19. Earnings before interest, tax, depreciation and amortisation (EBITDA) on an underlying basis were down 61% to $2.3m compared to $5.9m for FY19. The focus on performance continues, even whilst maintaining a strong investment on key breakout growth opportunities including Orion LifeSpan™ MEG system and Somfit[®] sleep-health platform. Additionally, a strong ongoing focus on quality and efficiency improvements across all operational areas of the business continues to be a priority as we move through the impacts of the COVID-19 pandemic.

Revenues shipped and invoiced decreased 15.5% to $35.1m for FY20, compared to $41.5m for FY19. Sales orders taken for FY20 were down 13.5% for the core business compared to FY19.

Cash on hand increased to $6.4m for FY20, compared to $4.6m for FY19. Debt levels also increased to $3.5m compared to $1.6m for FY19, this was due to the payroll protection scheme in the US where the company received $0.9m (USD0.6m) which will be forgiven if certain conditions are met by 31 December 2020. In addition, substantial ongoing investments in the form of research and development (R&D) continued in the core neuro and sleep diagnostics business, together with strong commercial activation advancement across both new Orion LifeSpan™ MEG and Somfit[®] sleep-health business divisions.

KEY PERFORMANCE MEASURES (FY20 Pandemic Impacts and Opportunities)

NEXUS 360 TM	SOMFIT TM	FIRST MEG
CLOUD CLINIC SERVICES STRATEGY	CONSUMER SLEEP DEVICE COMMERCIALISATION ACTIVITIES ADVANCE	INSTALLATION PROGRESSING
46 SITES	270 BEDS	75,000 STUDIES
NEXUS 360 TM	NEXUS 360 TM	NEXUS 360 TM
53%	29%	67%
ORDERS TAKEN	NET PROFIT AFTER TAX	EBITDA
(CORE BUSINESS)	(UNDERLYING)	ING) LY (UNDER
$35.2M	55%	61%
Down 13.5%	$1.8M in FY20 vs $4.0M in FY19	$2.3M in FY20 vs $5.9M in FY19
		CORE BUSINESS*
REVENUE	CORE BUSINESS* EBITDA	NET PROFIT AFTER TAX
$35.1M	$3.6M	$3.7M
DOWN FROM $41.5M IN FY19	$3.6M in FY20 vs $7.4M in FY19	$3.7M in FY20 vs $5.9M in FY19

*Excludes Medical Innovation Strategic Investments

Further underscoring the strength of the core business profitability, over $3.0m was invested in next-generation growth platforms (medical innovations) including the new magnetoencephalography (MEG) neuroimaging business, eHealth (professional) sleep cloud services (Nexus 360), and Somfit[®] sleep-health platform, positioning Compumedics for ongoing growth coupled with significant upcoming business realisation opportunities.

A number of key milestones and positive outcomes were achieved during the 30 June 2020 (FY20) financial year. In particular, the US FDA 510(K) market clearance in February 2020 of our Neuroscan Orion LifeSpan™ MEG system paves the way for further commercial activation of this product.

Gross margins declined from 57% in FY19 to 51% in FY20, largely due to the decline in sales volumes, but still positively offset by our strengthened operational management team and reinvigorated drive to continue efficiency improvements throughout the organisation.

OPERATIONS

Solid Underlying Financial and Operational Performance. Compumedics continues to focus on its core strategy and operational execution, by way of early adaptation and deployment of a range of new operational productivity and business growth initiatives, designed to ultimately overcome the temporary pandemic setbacks. Moreover, the company has continued to maintain its underlying profitability and prudent cash management, as an essential element to its sustainability and related global job security, stability and certainty moving forward. As already noted, we are highly grateful to our Compumedics people, partners, suppliers, shareholders and other stakeholders, especially those who have taken the extra time to understand how we are not only navigating through the current challenges but clearly focussed on emerging as a stronger company with reinforced and expanded growth prospects, to further bolster future performance outcomes from our well established blue-chip customer based core business.

Ongoing Performance and Profitability Improvements. Importantly, both immediate refreshing of all sleep and neurodiagnostic product pipelines has been clearly demonstrated with new cutting-edge remote monitoring platforms now under regulatory market release processes. With the heightened use of online remote, telemedicine systems, Compumedics new range of Okti™ remote neurology and Falcon HST systems is ideally timed.

Compumedics remains focussed on continued review and potential improvement programs and initiatives, throughout the organisation. New operational key performance indicators continue to be deployed as a means of pre-empting potential or emergent issues, in order to enhance quality, whilst continuing to strive for reducing waste, and

enhancing productivity and efficiencies. Naturally, these aspects are designed to translate into greater corporate sustainability, including enhanced sales margins and profitability. As per prior years, these programs cover areas such as improving purchasing effectiveness and efficiencies, strengthening manufacturing, reinforcing our internal Compumedics manufactured consumable business strength and growth, and streamlining of logistics. Other programs continue to focus on continued growth and strengthening of our broad range of recurring revenue opportunities, enhanced online shopping cart capabilities, and implementation of global 24-hour help-desk support services.

PRODUCT DEVELOPMENT PIPELINE

The 2020 year in progress was a year of substantial research and development advancements along with regulatory activities, positioning Compumedics for a range of blockbuster new product releases and roll-outs for the 2021 year ahead. In particular, the new products rollouts play into Compumedics’ greatest ongoing legacy and strengths and the markets greatest current demands. That being the need for telemedicine or remote monitoring systems. In terms of Compumedics ongoing legacy, the company’s first generation of ambulatory systems (Compumedics P-Series) won some of the world’s most technologically competitive diagnostic monitoring contracts, including 2 NASA astronaut monitoring contracts (Space Shuttle and Space Station Missions). Compumedics was also awarded the contract to equip the world’s first and largest home sleep study of its kind (USA NIH funded 14000 patient Sleep Heart Health Study SHHS). Novel findings of the SHHS included increased incidence of heart failure amongst severe OSA sufferers (Gottlieb DJ et al. 2010) and the SDB association with allcause mortality, and specifically coronary artery disease (Quan SF et al. 2009). Compumedics won the highly competitive and prestigious NIH tender against 21 world leading sleep companies and the study involved 18 USA Medical Institutions/Organisations.

Consequently, to now be in the regulatory process phase in preparation for the imminent release of both Compumedics’ newly developed neuro and sleep diagnostic remote/telemedicine systems, comprising of the Okti ™ and “Falcon” HST ranges, respectively, is extraordinary positioning for core and emergent market business growth, for the year ahead, and beyond.

In general, Product R&D, across both core product groups, in conjunction with breakout business divisions, was maintained across all the Company’s divisions with a range of product updates, new product releases, and refreshed product pipelines. This underpins rapid emergence from the current pandemic set-back towards strong ongoing growth across the Compumedics[®] sleep, neuro-diagnostic, Neuroscan[®] research, DWL[®] (ultrasonic Doppler blood flow) and consumable businesses.

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Compumedics [®]
“Falcon”™ HST Solution
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“Falcon” HST

As noted above Compumedics led the market in diagnostic remote/ telemedicine monitoring and the new “Falcon” home sleep testing (HST) product range ushers in a new era of affordable premium HST performance capabilities. These capabilities include streamlined userfriendly interface, fully integrated with the Nexus 360 platform. The product represents a leap forward in HST usability with a focus on the ability for the patient to attach the device without reliance on technician intervention. Coupled with advanced communications technology and a raft of convenience features the new HST range will change the way our customers approach the HST market.

Okti ™

Compumedics has led the way in high density clinical systems for advanced epilepsy recordings as well as ambulatory portable acquisition. The Neuvo and Siesta products are still best in class in their segments. After several years in development, the latest generation of Compumedics amplifiers targeting the electroencephalograph market is only months away from release. This amplifier combines the best of the Neuvo and Siesta product lines in a single product. The Okti range will provide the markets leading solution for both ambulatory, long term, high density and research applications. With a focus on usability and size, including features specifically aimed at the increasing focus on cyber security in medicine, Okti represents a leap forward in both standard clinical practice and advanced data collection. With a fully integrated usability solution with a focus on disposable accessories, the Okti is optimised for the current and future needs of the clinical and research user.

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Compumedics [®] Okti™
Clinical and Research
EEG System
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CORiSS ™

Cortical stimulation is an increasing requirement for high-end epilepsy surgery programs. The need for a fully integrated cortical stimulator and switch matrix to allow neurologists and neurosurgeons to map out functional areas of the brain is becoming increasingly important as surgery emerges as the leading treatment for epilepsy. The Coriss cortical stimulator from Compumedics is designed to address this need and seamlessly integrate into the family of Compumedics products to

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Compumedics [®] CORiSS™ Cortical Stimulator
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provide a complete end-to-end solution. The Coriss product is finished awaiting final regulatory data collection. While this has been impacted by COVID-19 we expect its market release within 6 months.

Profusion ™ EEG

Profusion™ EEG is the clinical neurology software solution from Compumedics. It compliments the Profusion™ PSG, CURRY[®] and Nexus™ 360 products in providing a complete solution for Neurology clinical activities. With the release of version 5 of the EEG software last year we will be following it up this year with a number of breakout enhancements focused on the usability with an increasing focus on advanced algorithms to enhance the automated tools at the clinicians disposal.

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Compumedics [®]
Profusion EEG™
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Compumedics [®]
Profusion NeXus™ 360
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Profusion NeXus ™ 360

Nexus™ 360 continues to deliver the only full HTML 5 based laboratory management solution on the market.

Now established as a leading solution with an expanding installed base it continues to grow in capabilities and features. The addition of full native application support as well as full cloud-based solutions and now with full support for neurology laboratories, Nexus™ 360 continues to be the leading cloud or on-premise solution for efficient, standards compliant, secure management of patient data.

Having established a strong foundation in the USA sleep diagnostics markets, significant in-roads have also been made into neurodiagnostics and ambulatory EEG monitoring. Both the Compumedics/ cloud-hosted and on-premises deployment models have continued to expand in functionality and reliability with greater platform adoption in the Australian sleep and neuro-diagnostic markets whilst also serving as a platform for the Somfit home-monitoring device.

Leveraging from this success, international adoption of Nexus™ 360 has been achieved with installations in France, Thailand and New Zealand, alongside increased pipeline activity in Europe, South America and the Middle East. Additional product variants are currently under consideration for improved performance and greater uptake in small (1-4 bed facilities) that require a simplified database and remote accessibility.

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DWL[®] TCD in use with COVID-19

DWL[®] CONTINUED MARKET GEOGRAPHICAL DIVERSITY AND MARKET EXPANSION DRIVES PERFORMANCE

Despite an extraordinary year of COVID-19 consequences, including a 30% decrease in DWL China business, DWL’s global expansion initiatives still paved the way for an overall growth of 4% in the 2020FY. Some of these special performance highlights included United Kingdom sales growth of 155%, with Japan increasing by 66%, Vietnam up 66% from the prior year and DWL USA, Inc. was up 16% setting new records with over 1 million dollars in sales.

TCD in use with Sickle Cell (SC) Anemia

Sickle cell anemia is the result of sickle-shaped blood cell deformations, which often leads to stroke. DWL TCD is offering the unique opportunity to measure the vessel sections with the highest blood flow speeds and developed a special SC report for faster diagnosis. DWL is supplier for a medicine approval confirmatory study for treatment of SCD patients involving up to 50 intercontinental study sites and is well on the way to becoming the golden standard for SC diagnostics.

TCD in use for stroke management

These results position DWL well for the year ahead, with some extraordinary breakout product developments, such as robotic TCD to potentially transform diagnostic areas such as traumatic brain injury (TBI) and stroke diagnosis and management. The China market now also appear to be returning to strong growth following a temporary COVID-19 pause. In fact, quarter 1 of this year including China demonstrates record business and COVID-19 rebound.

DWL Continued Innovation and Diversity in TCD application

DWL is focused on expanding markets in intensive care medicine, stroke management, cardio surgery, anesthesia, neuro monitoring and neurosurgery.

TCD in use with COVID-19

Research results say that COVID-19 can be particularly dangerous in patients whose vascular function is already impaired and then leads to vascular inflammation, heart attack, stroke. TCD can help for early detection and therapy determination.

DWL in use for Traumatic Brain Injuries (TBI)

The development of robotic ultrasound will further strengthen the role of DWL in TBI diagnosis in the field of emergency and ICU for sports, battle fields and ambulances.

The upcoming DWL TBI detection solution will consist a dedicated automatic software solution and a robotic vessel detector.

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DWL [®] Robotic
Vessel Detector
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DWL TCD has its unique performance in detecting cerebral micro emboli. With this therapy can be determined more precisely and stroke patients can be protected against possible consequential damage with appropriate measures. In cooperation with European reference centers DWL is improving its emboli detection algorithm and equip a global multi-center study with DWL TCD systems.

TCD in use for Neurosurgery

Intraoperative examinations directly on the blood vessels enables neurosurgeons to control the quality of intra-operative surgery. With the new EZ-Dop™ system the potential to expand this market is huge.

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DWL[®] EZY-Dop™ System

TCD with Neuromonitoring Analysis (NMA[®] )

The use of the innovative screening software Neuromonitoring Analysis (NMA[®] ) allows cardiovascular surgeons, anaesthetists and intensivists quickly and reliably interpret the TCD signal in complex clinical situations providing valuable information for further disease assessment and therapy control.

DWL for patient data management

DWL offers a digital output interface to Philips IntelliVue[®] Monitors for clinical monitoring as well as an output interface to Cambridge ICM+[®] for brain monitoring.

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Compumedics[®] Neuroscan Orion LifeSpan™ MEG system

Dr. David Burton, Compumedics CEO with Mr. Thomas C. Bour, BNI COO.

ORION LIFESPAN™ MEG INSTALLED AT BNI

First-phase delivery of the initial Compumedics/Neuroscan Orion LifeSpan™ MEG system to USA-based Barrow Neurological Institute (BNI) at St. Joseph’s Hospital and Medical Center, located in Phoenix, Arizona, was completed at the start of the second quarter of 2019. This first phase focused on delivery of a system specifically designed for the evaluation of adult patients with unprecedented accuracy. The second , scheduled for FY20, was, like many other international projects, interrupted by COVID-19 restrictions on travel. Not sitting idle, we have taken the opportunity to further improve the design for the second and final stage of installation which includes the paediatric helmet, now planned for late 2020. This final stage of installation will of course be contingent upon the lifting of international travel restrictions.

While the initial post-installation recordings demonstrated the high quality of the magnetic field measures of brain activity, a number of changes have been implemented to further improve the signal-to-noise performance of the system. These include hardware changes to “harden” the systems resistance to radiated noise as well as software implementation of the latest algorithms for separating and suppression environmental noise from the brain’s magnetic field activity. Combined, these changes have significantly reduced noise levels in the traditional frequency used for neuro clinical diagnostics. The engineers at Compumedics Neuroscan, in partnership with our engineering partners at the Korea Research Institute for Science and Standards, continue to push for a much wider frequency range of performance, which will allow clinicians to perform their critical investigation into new frontiers. Fully powered by the CURRY[®] acquisition and analysis software, Compumedics/Neuroscan Orion LifeSpan™ MEG system will continue to expand the functionality for clinical/research MEG brain signal acquisition and analysis.

ORION LIFESPAN™ MEG CERTIFIED FOR CLINICAL USE IN THE USA

The Compumedics/Neuroscan Orion LifeSpan™ MEG system was submitted to the Department of Health and Human Services of the United States Food and Drug Administration for certification to allow clinical use of the instrument. After a thorough examination process which included attestations of safety, effectiveness, signal-to-noise ratio compared to earlier MEG technology and localization accuracy, the device was granted a 510(k) number allowing it to be marketed and used clinically. The granted indications for use state that “the Orion LifeSpan MEG noninvasively measures the magnetoencephalographic (MEG) (and, optionally, electroencephalographic (EEG) signals) produced by electrically active tissue of the brain. These signals are recorded by a computerized data acquisition system, displayed, and may then be interpreted by trained physicians to help localize these active areas. The locations may then be

correlated with anatomical information of the brain. MEG is routinely used to identify the locations of visual, auditory, and somatosensory in the brain when used in conjunction with evoked response averaging devices. MEG is also used to non-invasively locate regions of epileptic activity within the brain. The localization information provided by the device may be used, in conjunction with other diagnostic data, as an aid in neurosurgical planning. ”

Furthermore, the system installed at the company’s beta site was fieldevaluated by Underwriters Laboratories (UL) and given registration marks. The Magnetically Shielded Room there was likewise evaluated and successfully marked. 7

The Orion LifeSpan™ uses the advanced CURRY[®] software platform for both acquisition and analysis of MEG/EEG data. This software was previously fully FDA certified with a 510(k) number. Via CURRY[®] , the Compumedics/ Neuroscan Orion LifeSpan™ MEG system exclusively inherits the “gold standard” functionality for clinical/research MEG brain signal acquisition and analysis. Likewise, the SynAmps EEG used with the system was also previously fully FDA certified with a 510(k) number.

These certifications will allow users of the company’s technology to evaluate clinical epilepsy patients and those about to undergo resective brain surgery. Furthermore, they open the door for Compumedics to the larger mainstream clinical market within the USA. Other regulatory submissions, for example to Health Canada and the European CE Mark are now underway.

ONGOING ACTIVITIES TO DRIVE GROWTH

A submission to the FDA in June of 2019, culminated in a successful completion of the FDA 510(K) in February 2020. Following the completion of this critical 510(k) clearance, other regulatory submissions to Health Canada and the European CE Mark are now underway.

On the R&D front, further development continues on more comprehensive MEG offerings for both clinical and research applications with new MEG designs. These will accommodate both sitting and lying (supine) positions. These advancements, added to the existing two-helmet, supine-only design, will allow the company to address unmet needs in the adult/paediatric cognitive neurosciences market. This is in addition to features which allow the simultaneous testing of two patients or subjects simultaneously, which is of great interest in the emerging field of cognitive social science.

The ongoing improvements currently being integrated into the Orion design, coupled with FDA regulatory clearance for clinical use and the exclusive patented feature of the Compumedics/Neuroscan Orion LifeSpan™ MEG system will allow Compumedics Neuroscan to vigorously compete for all new MEG tenders as well as upgrades worldwide.

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CURRY[®] Neuroimaging Software

Enhancements to the Orion LifeSpan™ system include improvements to the CURRY acquisition/analysis software, environmental noise cancellation algorithms, along with more comprehensive MEG offerings for both clinical and research applications with new designs and ergonomics. These advancements, added to the existing offerings, will allow the company to address unmet needs in the adult/paediatric cognitive neurosciences market. These advancements will allow us to vigorously compete for all new MEG business worldwide.

With the delays imposed by COVID-19 restrictions, Compumedics is taking the opportunity, along with our beta site colleagues at BNI to further test all aspects of the Orion MEG/EEG system so that any outstanding issues and opportunities to further enhance performance of the system can be incorporated into the final Phase II installation. Compumedics plans to continue putting in place close working relationships between the company and the large CURRY[®] installed base, along with those facilities who will be using the Orion Lifespan™ MEG. This includes validation studies supporting new applications for MEG; cognitive function and dysfunction research; protocol development, especially those that will directly lead to clinical biomarkers; validation and verification studies; improved/ expanded funding for MEG, including research grants and especially clinical reimbursements (both public and private); etc. The company has a strong interest in expanding the role of MEG in detecting and diagnosing epilepsy, autism, dementia, Parkinson’s disease and other brain/nervous system disorders.

Neuroscan CURRY[®] and STIM™

In the next few months, version 9 of CURRY[®] will be replaced, once regulatory documents have been completed. This newest version of the Compumedics Neuroscan software platform, long recognized as the industry standard, has a number of new features and modules. These include a direct communication with PACs servers, the standard platform for storage of neuroimaging data including, MRI, fMRI, PET, CT, SPECT, and DTI data, all of which CURRY[®] can integrate and coregister. There is also a brand-new spike and seizure module, based on machine learning algorithms. Based on prior knowledge and training from data sets marked by epilepsy experts, this module provides precise capture of inter-ictal epilepsy spikes, with ability to sort spikes into different groups, and then perform source localization using a number of dipole or current-density reconstruction options. Seizure detection also allows the automatic marking of seizure onset and the identification of the EEG channels associated with this onset. Currently, Compumedics Neuroscan is working to transfer the functionality of this module from CURRY[®] , across to the Profusion™ EEG software, so it is also available

across the entire platform of Compumedics Clinical EEG products. This module allows Compumedics to compete directly with other vendors in the market who already provide such functionality. In addition to these new features, CURRY[®] now includes full processing of Diffusion Tensor Imaging or DTI data, with a full white matter tractography module. Tractography, extracted from diffusion tensor imaging MRI data, provides a detailed view of the “wiring” of the brain. While the grey matter of the brain is the origin of all cognitive function, the white matter axonal fibre tracts provide the backbone of communication between different areas of the brain.

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C URRY [®]
D TI Fiber-Tracking data
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Parallel with the significant changes in version 9 of CURRY[®] , work is progressing on developing a fully integrated high-density clinical EEG system with full capability of measuring brain activity evoked by the presentation of auditory, visual, tactile, or other forms of sensory stimulus presentation. Clinically, and for both EEG and MEG, this can be used to identify eloquent cortex, both from scalp EEG recordings and grid, depth, and stereotactic EEG recordings. Combined with a large expansion of functionality in CURRY[®] version 9 for pre-surgical planning, this platform offers a new fully integrated functionality for neurology programs that include neurosurgical treatment for epilepsy.

STIM™2, the experimental design software package has always focused on a core set of functions with a simple, easy to use programming interface. In the upcoming year, Compumedics Neuroscan will release an update to STIM™2 with an even simpler-to-use interface that allows the user to execute a number of standard auditory, visual, and tactile stimulation tasks with just a single click. There is no need to enter the programming interface with this new update. And to further expand functionality, this new interface allows customization for user-designed paradigms. As part of the purchase of STIM™2 with a support contract, users will be able to solicit programming assistance from the Neuroscan engineering team to develop custom paradigms that can be added to the one-click user interface.

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Compumedics/Neuroscan Fast-Emerging Orion LifeSpan™ MEG Brain Scanner Division

Magnetoencephalography (MEG) is the most sensitive and precise functional brain imaging technique currently available. It measures and localises signals using helmet-shaped arrays of superconducting sensors in real-time at a millisecond rate with millimetre accuracy. It is completely non-invasive, safe and silent. It has applications in both neuroscience and clinical diagnostics. Currently fewer than 200 MEG sites are active worldwide, so the opportunity for substantial growth in the market is enormous.

Magnetoencephalography (MEG) Functional Brain Imaging

The Compumedics Neuroscan Orion LifeSpan™ MEG system is a breakthrough in MEG technology, being the first to offer adult/paediatric capability in one instrument. MEG technology highlights include:

• The most accurate functional brain imaging technique currently available. It measures and localises signals using helmet-shaped arrays of super-conducting sensors in real-time at a millisecond rate with millimetre accuracy.

• Completely non-invasive, safe and silent. It has a wide array of existing and emerging applications in both basic science and clinical routine.

• Contributes to improved diagnostic outcomes. Data recorded from Compumedics/Neuroscan Orion LifeSpan™ MEG systems allow greater confidence in identifying areas of the brain generating epilepsy activity. This, in turn, increases confidence in surgical remediation and lead to better patient outcomes.

• Increasing clinical adoption and a wide variety of research applications. These factors point to a market that will grow exponentially in the coming years. The company is strategically focused and is continuing to drive progress forward in order to allow Compumedics to appropriately capitalise on this growth.

• Fully reimbursed by private and public insurance in the US, along with other countries.

Compumedics/Neuroscan Orion LifeSpan™ MEG

The Orion LifeSpan™ MEG is the culmination of decades of experience in the field:

• An ongoing technology transfer program executed in 2016 with the Korea Research Institute of Standards and Science (KRISS), offers the field an advanced, completely integrated and significantly more cost-efficient MEG platform for both research and clinical medicine. KRISS has been developing MEG technology since the 1990s.

• At the core of the new Orion LifeSpan™ MEG is the latest generation of MEG brain sensors, comprising of the patented DROS SQUID (Double Relaxation Oscillation Superconducting Quantum Interference Device).

• Importantly, at the heart of the Orion LifeSpan™ MEG is a unique integrated vacuum coolant system, enabling continuous helium recycling, which not only allows 24/7 uptime for the Orion LifeSpan™ MEG, but also drastically reduces operations expenses as traditional cyclical replacement of helium for the MEG has become prohibitive in supply consistency and in cost.

• This expertise, combined with the established SynAmps amplifier and CURRY[®] software capabilities of Compumedics, has resulted in the world’s most advanced MEG device.

• The unique Orion LifeSpan™ MEG system consists of a patent pending, rotating dual-helmet dewar for adult and paediatric patients (adult/adult, paediatric/paediatric options are available). With this, two MEG systems can be contained in a single magnetically shielded room (MSR), cutting in half the cost of having two MSRs with conventional MEG systems, one for a paediatrics and one for adults. The dual-helmet design also allows a single medical centre to expand their neurological health services and associated income base, by supporting a larger patient population, from infants through to adults.

Compumedics web-based sleep diagnostic platforms

These eHealth developments present significant efficiency gains for Compumedics’ existing and new customers, along with a highly scalable and effective business model for Compumedics and clients, alike.

Customers appreciate the industry-leading quality and sophistication of Compumedics’ “plug and play” amplifiers, coupled with the unique Compumedics single vendor solutions.

Nexus™ 360 enables a fully-integrated sleep web-based platform, incorporating the first of its kind “end-to-end” clinical enterprise solution for unsurpassed simplicity and efficiency, providing an effective user clinical work flow and user experience, along with a comprehensive range of enhanced reporting tools.

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Profusion Nexus™ 360 Web-Based Laboratory Management System

GROWTH OUTLOOK

In accordance to prior explanations, Compumedics is not looking at this global pandemic situation as a time for excuses but rather focussing on doubling our efforts to adapt and foster new initiatives applicable to these times, along with the challenges and opportunities, as we drive forward. We believe we have compensated for the slight setbacks as we work out better ways to operate, execute our focussed strategies and most importantly build our team, talent and reinvigorated focus on growth, moving forward.

We look forward to sharing with the markets, in due course, our modified and adapted but sharpened strategies and initiatives designed to make up for some of the lost traction during recent pandemic lockdowns.

New product platform roll-out to continue in FY21

As noted, and in accordance with Compumedics tradition of world’s best of class sleep and neuro-diagnostic monitoring systems we are pleased to be now in the final stages of preparing regulatory approvals as we prepare to release our new generation of remote monitoring EEG (Okti™), HST (“Falcon”) and continually updated Cloud services (Nexus™360) products and services for an exciting year ahead.

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Compumedics Falcon™ Home Sleep Testing Device

Compumedics/Neuroscan expansion into much larger MEG brain analysis imaging market

• The Company continues to successfully pursue further opportunities in this field during FY20 and is actively working known opportunities.

Growth in international markets with active sales expansion plans for China, Japan, Germany and USA

• Japan business growth led by our new partnership with Fukuda Denshi, a globally respected medical company, continues to build and grow.

• Our USA team and management, coupled with a number of clients, including leaders in the area of neuro and sleep diagnostic services, have helped strengthen and position our USA business for stability and growth moving forward.

• A number of our leading divisions such as DWL have already returned to overall growth, even in China, and are now leading the way in terms of both market and product diversification to already compensate for the pandemic setbacks.

eHealth business expansion with continued commercial activation of its flag-ship platform, Nexus™ 360

• Having established a strong foundation with our eHealth platforms based on NeXus 360 market penetration in the USA and Australia, Compumedics is poised for international expansion in both the sleep and neurodiagnostic eHealth markets with recent installations in France, Thailand and New Zealand.

• Compumedics has continually expanded the NeXus 360 installation base with over 45 sites (> 270 beds) in both the USA and Australia.

• The NeXus 360 platform generated $1.13m revenue in FY20, with total signed contract value exceeding A$1.5m in annual subscription fees.

• The number of patients recorded on the platform now exceeds 80,000, servicing large clients in both sleep and neurodiagnostic applications.

DWL business expansion opportunities following the granting of a servo-controlled robotic ultrasound patent, along with its new generation of EZ-Dop™ technology, along with colour ultrasonic and TCD advancements

• Compumedics/DWL patent, enabling a servo-controlled robotic ultrasound system. DWL produced the proof of concept for this exciting new system in the year in progress and are now rapidly moving to a clinically deployable system, expected in the year or years ahead. Compumedics are already seeking expressions of interest for collaborative partners and most importantly first-movers with DWL the original and current day founder and leader in clinically and research science deployed TCD systems. These “first-mover” reference sites include discussions with leading defence health innovators wishing to consider deployment of the new generation traumatic brain injury (TBI) and stroke diagnostic capabilities of these DWL PLL/robotic TCD systems to help save lives amongst the military personnel, ambulance service groups, emergency departments, and even leading athlete performance and health management groups, focussed and aware of ongoing TBI prevention and management.

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DWL[®] Neuro-Monitoring-Analysis (NMA)

12

SUMMARY AND FINANCIAL OUTLOOK

Compumedics remains well positioned, based on the solid overall FY20 performance, to reinvigorate growth, and indeed divisions such as DWL have already returned to growth with both new geographical market expansion, as well as existing major market growth in countries including USA and China.

Moreover, the existent core business, coupled with an array of new upcoming product releases, and the continued commercialisation progress across breakout divisions such as Orion LifeSpan™ MEG and Somfit[®] provide a promising outlook. In particular the Orion LifeSpan™ MEG FDA market clearance, earlier this year, is a milestone commercialisation achievement, further underscoring this exciting new breakout divisions outlook.

Despite margin being adversely impacted by a reduction in sales, during the temporary pandemic setbacks, the underlying profitability and efficiency measures continue in a positive direction.

Return to overall growth is expected, based on Compumedics existent distribution network coupled with the excellent ongoing performance from all divisions and star examples such as DWL[®] prevailing and growing amidst the pandemic by way of key markets such as USA and China swiftly returning back to growth, as well as product and geographical distribution expansion initiatives.

Notably, FY21 will see a number of major new product platform releases. These releases cover highly emergent growth demand for remote and telemedicine monitoring systems. Given Compumedics’ history with winning medical equipment supplier contracts, including multiple NASA monitoring contracts as well as the words largest of its kind sleep heart health study (SHHS), the company is now ideally positioned with its new generation of cutting-edge remote/telemedicine products and services. These products and services include its neuro (Okti ™), home sleep testing (HST’ “Falcon”) and continually upgraded Cloud services (Nexus360).

Nexus™ 360 has cemented its foundation as a proven platform for sleep diagnostics and neuro-monitoring lab management with some significant clients on-boarded in routine, long-term and ambulatory centres.

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Established as a sustainable pay-as-you-go annuity (SaaS) model, Nexus™ 360 will be further augmented in FY21 and beyond with tailored feature-sets for the ambulatory (OnSight™ and Somfit[®] ) markets.

In terms of FY21 outlook guidance, the company is demonstrating strong signs, as noted, and looks forward to sharing a number of positive announcements in the year ahead.

As a quick wrap-up, the FY20 was a year of staying the course and prudent management, to ensure the value of our company and our people’s jobs remained in focus throughout the temporary COVID-19 setbacks. FY21 will be a year to build on many of the new 2020 and 2021 initiatives to double our efforts on growth focus and make up for the temporary COVID-19 setbacks.

However, as also mentioned we do not see the FY21 year ahead as a time for excuses, but rather a time to consolidate and strengthen our position based on very early adaptation, deployment of new initiatives 11 of these new times of today and ahead, as well as preparing to intensify our focus and efforts towards future growth, as the restrictions of this 12 period ease off.

All of our core business divisions have progressed and stayed the course, whilst the commercialisation progress our Orion LifeSpan™ MEG and Somfit[®] breakout divisions have also progressed significantly. The aforementioned upcoming new product releases, together with demands for diagnosis and health management of neuro and sleep diagnostics will continue to underpin Compumedics growth amongst its well-established direct offices and distribution partner networks for the 2021 financial year, and many years ahead.

We would like to thank you all for your continued support and we look forward to driving on-going developments and associated announcements throughout the year ahead.

Yours sincerely,

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Dr. David Burton, Ph.D. Executive Chairman and Chief Executive Officer Compumedics Limited

Compumedics Okti[™] ambulatory EEG paediatric back-pack

GLOBAL MARKETS

Global

Neurodiagnostics market

Description of the market:

Global Neurodiagnostics is the study of electrical activity in the brain, spinal cord, nerves and muscles for the diagnosis and monitoring of neurological based diseases. Tests may be performed in hospital outpatient departments, neurophysiology labs, operating theatres, intensive care units and private practice.

Global Sleep Diagnostics market

Description of the market:

The global Sleep Diagnostics industry is comprised of diagnostic and therapeutic technologies and medicines. Compumedics’ core business lies in the design and manufacture of technologies for the diagnosis of sleep disorders – a market estimated to be worth AUD$250 million worldwide and growing.

Global Brain Research market

Description of the market:

Global Brain Research is the study of the brain’s functionality, using Quantitative EEG (QEEG) methods to supplement traditional EEG findings. With the advent of high speed digital information processing and statistical analysis, QEEGs extract and quantify brain electrical activity to address aspects of EEGs that cannot be appreciated visually.

Global Doppler Ultrasound market

Description of the market:

The Doppler Sonography technique utilises sound frequencies to measure the blood flow conditions in vessels and evaluate haemodynamics by using highquality diagnostic and monitoring systems.

DWL Doppler systems are used in a wide range of specialist branches of medicine including neurology, neurosurgery, cardio- and vascular surgery, anesthesia, intensive treatment, internal medicine, angiology and radiology.

The products are purchased by private practices and clinics, hospitals (both public and private), and by major universities, national research institutes and corporate research laboratories around the world.

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Current Market position:
AUS
1 3 1
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Competitive Advantages:

• 1 Complete range from clinical to research technologies

• 2 Uncompromised system design

• 3 Highest industry quality standards

• 4 Best in class brain analytics

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Current Market position:
AUS
1 3 1
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Competitive Advantages:

• 1 Innovative strength

• 2 Active involvement in sleep science globally

• 3 Market placement and momentum 4 Best in class sleep analytics

Current Market position:

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1 1 1
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Competitive Advantages:

• 1 Superior patented technology

• 2 Uncompromised system design

• 3 Unmatched innovation

• 4 Best in class brain analytics

Current Market position:

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1 1 1 1

Competitive Advantages:

• 1 Excellent signal and image quality

• 2 World best Signal to Noise Ratio

• 3 Product variety for monitoring application

• 4 Neuro-Monitoring Analysis (NMA[®] )

• 5 Emboli detection and differentiation

• 6 Customized Sickle Cell Disease diagnosis

• 7 Built in CO2 module

• 8 Standard, Advanced Reports and Structured Reporting (DICOM)

Current Market Share:

less than 1[%]

Key drivers:

The key drivers for achieving growth in this market are to have technologically superior products that differentiate Compumedics from existing competition. This will be achieved with the revolutionary upgrade to the Compumedics EEG range that includes new class-leading hardware, user-intuitive software platforms matched with a new range of disposable consumables. Compumedics is also tapping into new EEG clinical segments such as the Home video ambulatory EEG monitoring and cortical stimulation.

Current Market Share:

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6 [%]
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Key drivers:

To logically continue to expand our US and European sales and support infrastructure and to evolve the business to provide complete sleep medical solutions.

Current Market Share:

30[%]

Key drivers:

The key driver for growth in brain research will be to maintain Neuroscan’s preeminent technological lead and to back this by expanding the sales and support infrastructure to harness this expanding market opportunity. Expansion into markets including animal (non-human) EEG and pharmaceutical product development will be actively pursued worldwide.

Current Market Share:

less than 35[%]

Key drivers:

• Highly skilled R&D team with over 25 years of experience

• Diversity in TCD applications

• Specific solutions for specialised applications in the use of TCD

• Perfecting methods to become golden standard in TCD applications

• Record number of most relevant scientific reference publications

• 9 Digital interfaces

• 10 German quality engineering tradition

13 14

CORE BUSINESS - GROWTH DRIVERS

Compumedics will continue to grow its core sleep, neuro, brain research and blood flow monitoring businesses by:

Compumedics / Neuroscan LTEM innovative brain analysis software (CURRY® 9 close to release) and high performance amplifiers are unrivalled world class technology. CURRY® 9 releasing in FY 21.

We have >23,000 systems installed worldwide. Strong reputation and brand name. Customers like buying from Compumedics.

Earnings initiatives to continue to flow through in FY21 – FY22. New range of ambulatory products for Sleep and Neurology releasing FY21.

USA based business growing with further modifications and enhancements to the team being implemented to support stronger growth across the entire business there.

Continued expansion into untapped German market, and ongoing growth in France.

Continuing growth from China in sleep diagnostics with a stronger emphasis on the neurodiagnostic monitoring market there.

Ideally positioned to accelerate organic growth and value realisation.

CORE BUSINESS

Premium Focus now expanding to whole market.

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Compumedics has traditionally sold its products into the premium end of each of the markets it sells into. The company has recently launched, and commenced shipping, a new range of devices that have been specifically designed to be priced competitively for the majority of customers in the markets Compumedics sells into. Compumedics will use its branding and reputation in the premium end of the market to drive market expansion in the whole market, increasing the addressable market available to Compumedics by two to three times.

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15 16

CLIENTS AND CORE PRODUCTS

Key Clients

Compumedics has over 30 years of operations and in that time has worked with and established a client list of key opinion leaders, world wide which include:

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Core Products

Sleep Diagnostics

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Compumedics Grael [®] - 4K HD Compumedics Grael [®] PSG Compumedics Siesta [®] Compumedics Somté [® ] PSG Compumedics Profusion [TM ] Compumedics Profusion [TM ]
Sleep Software NeXus Software
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Neuro Diagnostics (including Brain Research)

Ultrasonic Blood Flow Monitoring

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Monitoring
Compumedics Compumedics Profusion [TM ] Compumedics CURRY [®]
Grael LT [®] - HD EEG EEG Software Neuroimaging Suite
Multi-Dop [® ] T digital
Compumedics Neuvo [®] Compumedics Grael EEG [®] ONsight [TM] A.V.S. Compumedics Quik-Cap [® ] EEG Doppler-Box [TM ] X
512 Channel Neuroimaging Suite - 4K HD Ambulatory EEG Video Solution Orion LifeSpan [TM] MEG Electrode Arrays
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FINANCIAL SUMMARYSTRATEGIC GROWTH PLATFORMS

The Company is focused on a number of substantial opportunities based on next-generation growth platforms applicable to DWL, Neuroscan brain imaging, and medical innovation projects such as eHealth, sleep treatment, and driver vigilance.

The MEG opportunity is highlighted here.

THE NEW ORION LIFESPAN™ MEG - AN EXCITING INNOVATION FROM COMPUMEDICS

What is MEG? How Does it Work?

Key Features

Developed by David Cohen at Massachusetts Institute of Technology in the 1970s, MEG technology can record the magnetic fields associated with electric currents generated by synchronously active populations of neurons in the brain.

• 186/138 adult/pediatric radial gradiometers

• ( > Spatial Density than Elekta)

• Simultaneous hyperscanning of two patients/subjects

• SQUID: Double relaxation oscillation SQUID (DROS)

MEG is based on the use of highly sensitive detectors called SQUIDs, or super-conducting quantum interference devices.

• Average sensitivity: Better than 3.0 fTrms/ Hz (@ 10 Hz)

• Integrated Zero-Loss Closed-Loop Helium Recycling

These superconducting magnetic field detectors can accurately measure the occurrence of spontaneous brain activity called spikes, which can be signatures of the existence and location of onset for epilepsy activity in the brain such as dementia, autism and epilepsy can be detected.

• Sample Freq 10 kHz Max Option, Resolution: 16/24 bits

• 32/64/128 Channel Integrated EEG

• Active MSR Shielding (medium strength)

• CURRY[®] fully integrated / STIM2 / Video Integration

The development and integration of a zero-loss helium recycling system (used to cool the SQUIDs into the operational superconducting state), reduces system operating costs by as much as $100,000 USD annually.

• Real Time Dipole Averaging and Clustering

• Real Time Event Averaging

• 3 CURRY[®] WorkStations: 1 Acquisition, 2 Analysis

• multiple system configurations are under development including sitting only and combine sitting/supine options to satisfy clinicials and researcher alike.

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Orion LifeSpan™ key advantages

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Patented dual helmet rotating adult/pediatric dewar

Patented Sensing System

Integrated zero-loss Helium recycling Vibration-free continuous operation Helium reliquification system integrated into the Orion LifeSpan™ MEG system for reduced running costs

17 18

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Neuroscan MEG Neuroimaging
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• The CURRY[®] Neuroimaging platform and MEG have a history stretching back over 30 years. CURRY was first conceived as a product in the early 1990’s when Philips Electronics investigated the feasibility of developing its own MEG hardware platform. Ultimately, the hardware platform did not survive, but the software, along with its core engineering architects, Dr. Manfred Fuchs and Dr. Michael Wagner, continued on.

• The benefits associated with CURRY’s ability to integrate MEG with EEG and co-register both kinds of high-temporal resolution functional imaging data with the structural neuroimaging data including MRI, CT, DTI, as well as PET, SPECT and fMRI accelerated the adoption of the software by both the research and clinical communities. Early clinical adopters, such as Dr. John Ebersole, supported and championed the benefits of source localization tools such as CURRY, contributing to the development of specific source analysis billing codes for EEG and MEG. For a long time, CURRY has been the de-facto software platform for clinical MEG community, particularly those assessing epilepsy. This has culminated in the adoption of CURRY as the standard analysis platform by the European Epilepsy Consortium.

Market & Competition

• The MEG market was previously estimated at about 20 systems a year at an average selling price of USD4.0m each = US$80m/pa. The current market, anticipating the BNI instillation has adopted a wait and see state.

• This is expected to grow about 10% a year, excluding China.

• It is estimated that China could double the existing market size to about 70 units a year.

• The dominant existing player is Elekta, based out of Sweden, but now owned by private equity, followed by Yokogawa (Japanese market not owned by Ricoh) and CTF MEG (a much smaller player).

Plan

• H2 FY21 – Complete installation of first sale to Barrow Neurological Institute in Phoenix, AZ, USA (COVID-19 delayed)

• FY21 – Secure second sale

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STRATEGIC GROWTH PLATFORMS

Compumedics’ cloud based sleep diagnostic platform includes a professional application, NeXus 360, and a consumer application, Somfit.[®] NeXus 360 has grown to over 30 sites in the USA and Australia.

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TM
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Laboratory Management System
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A Revolution in Laboratory Management

Introducing Compumedics Profusion neXus 360, the next generation of Profusion neXus. Built on the proven Profusion neXus platform with more than 15 years of customer use and thousands of users, Profusion neXus 360 offers the full functionality of Profusion neXus and more, in a fully web-based interface.

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Profusion NeXus 360 Features:

Platform and Browser Independent

• Simple, browser/internet-based access via HTML5

• Two-factor Authentication Access

• Digitally secure study “sign-off”

• User-defined, group-based access privileges

• Template/Document Integration

• Non-editable audit-log

• Multi-language Support (English, French, Chinese, Spanish)

• Fully managed Cloud Service, simple installation, reliable system backups and easy system updating

• In-lab acquisition and real-time uploading to the web

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PC / Computer
Phone
Tablet
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19

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Quality Sleep is Essential

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“Every aspect of who you are as a human, every capability is degraded, impaired, when you lose sleep. What does that mean? Your decision-making, reaction time, situational awareness, memory, communication, and those things go down by 20 to 50 percent.” (Mark Rosekind, member of the National Transportation Safety Board in Sleepless in America – National Geographic Channel Documentary December 2014)

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30-40%
of the population
1 in 5 people
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Why use Gold Standard Sleep Technology?

The technology in Somfit[®] is medically validated and the data collected 20 is Gold standard – meaning that it is the accepted methodology to accurately measure and detect REM, and the data can be used for medical consultations with your GP if and when the need arises.

What is Sleep Fitness?

Sleep fitness is getting the right type or stages of sleep and the right amount of sleep.

There are five stages of sleep, each characterized by different brain activity.

The most important sleep stages are REM (dream sleep) that enables brain restoration for learning and memory and deep sleep for body recovery.

The body also needs alignment of our internal circadian clock with the sleep/wake cycle - otherwise sleep quantity suffers (ie the “jet lag effect”) and sleep fitness is degraded.

Are you getting quality sleep (how do you know)?

Movement detection is not clinically accepted as a true measure of sleep-wake.

The American Academy of Sleep Medicine (AASM) recommends that to clinically and scientifically distinguish between various sleep stages to determine sleep quality or fitness - sleep scientists measure brain waves (electroencephalography or EEG), eye movements and muscle tone. This is the Gold Standard for a sleep test.

The Somfit[®]

For the first time, a fitness tracker with gold standard sleep technology.

At night, the Somfit[®] will track your sleep collecting medical grade data to provide true sleep insights - understand your night’s sleep architecture - accurately measure the quality of your sleep through accurate measurements of durations you spend in REM, deep sleep or light sleep.

Coaching

Empower yourself with accurate sleep data and with Compumedics’ strong ties with the sleep professional community and extensive experience in sleep monitoring, you can take intelligent action to improve your wellbeing and performance.

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Who is it for ?

• Athletes - managing and enhancing performance

• Diabetics

• Medical professionals - to assist treatments of insomnia or depression

• Anyone who wants to truly understand their sleep habits START STUDY for well being.

Somfit[®] coaching APP

The power inside

Powered with technologies from Compumedics, the company with over 30 years experience in professional sleep diagnostics and equipping leading sleep laboratories around the world with advanced sleep monitoring systems.

Compumedics offers expertise in medical product design, but significantly provides the advanced diagnostic-grade signal processing power for more accurate sleep staging and analysis in the Somfit.[®]

A FOCUSED STRATEGY IN ACTION

For over 30 years, Compumedics’ focus in Sleep and associated medical disorders has established a solid platform for growth.

Compumedics DWL awarded membership to Germany’s top 100 innovative companies.

Used by NASA to Germany’s top 100 and SHHS. innovative companies. Compumedics awarded the 2006 Frost & Sullivan Technology Leadership Award. Compumedics and S-Series – chairman inducted �������� into the Victorian digital sleep Manufacturing Hall system in of Fame. ����������� Somté[®] PSG is released - Compumedics establishedDr. David Burton NASA contracts won for International Space Station and Space Shuttle flight Compumedics recognised Compumedics was named Australian Exporter the simplest and most convenient way to meet requirements for recording founded Compumedics preparation of the Year. full PSG, in both attended to design and manufacture medical electronics. Prior to Compumedics, P-Series and NASA chose Compumedics’ P-Series Portable Sleep Monitoring System for the 1998 Neuro-mission Space Compumedics was awarded the 1998 Governor of Victoria Award for Victorian Exporter of the Year. and unattended settings. analysis and diagnosis S-Series released Shuttle flight preparations. depended, in large Compumedics announced Compumedics won the Compumedics was awarded part, upon manual the release of the P-Series contract to supply medical the 1998 AusIndustry recording methods, which were very time Portable Sleep Monitoring System with features hardware for the International Space Station’s Human Innovation Award. Compumedics was awarded Siesta leading wireless system 802™ – World consuming and costly including intelligent CPAP Research Facility (HRF) under the 1998 Telstra for sleep and EEG Somté[®] PSG - Full PSG to implement. control. contract to NASA. Innovation Award. - receives FDA clearance. absolutely anywhere. 1988 1993 1994 2001 2006 - 2009 2008 Grael[®] is released - 1987 1991 1995 19982000 2002Compumedics released the 1999 2005 world’s first High Definition and premier PSG/EEG, Grael.[®] Epworth installs first Chosen for world’s Compumedics’ ASX listing Compumedics’ completes Grael[®] wins Powerhouse Sleep Disorders UnitCompumedics’ first sleep system was installed $1.7M largest sleep studyCompumedics won the competitive US GovernmentCompumedics listed on the Australian Stock Exchange. first acquisition – Neuroscan. Museum Award & finalistat the Australian International Design Award. at the Epworth Hospital Sales split funded contract to supply the Sleep Disorders Unit equipment for the world’s largest (Melbourne, Victoria). sleep study (6000 patients). TIME magazine and the The five year Sleep Heart Health television series ‘Beyond Study (SHHS) was won against a 2000’ both featured the field of 22 competitors, including Epworth sleep center. multinationals. Compumedics Domestic Export $0.2m$1.5m supplied 40 P-Series Sleep Monitoring Systems along with 9 replay and 6 analysis systems. The equipment selection DWL division established for blood-flow Doppler technology. Grael��������������� ���������������[®] PSG/EEG committee was made up of sleep E-Series ��������� experts from 11 leading University EEG/PSG system Hospitals across the USA. Compumedics introduces Compumedics was granted IEC direct selling in Germany. 601-1 patient safety certification for its S-Series and P-Series products. Globally read TIME Sales revenue

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Globally read TIME
magazine cover and
article brings the
“Trouble with Sleep”
to the world.
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$ 20.2M

21 22

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Compumedics recognised
as one of Australia’s top 100
Health Innovators through Beijing Bestmed, Compumedics Announces
its world leading devices for Compumedics’ China- Successful MEG Installation at
sl eep diagnostics. based distributor invests BARROW NEUROLOGICAL INSTITUTE
$0.5M, becoming a
top 10 shareholder Compumedics wins major
- this injection of funds multi-million dollar MEG
contributes to Compumedics brain imaging contract.
further growth in the China
region. New Patent Grant Underpins
Growth Opportunities for
Compumedics’ DWL.
- New product development
based on patent for system of
Somnilink SPAP [®] detecting and treating blood
vessel stenosis or occlusions.
Somnilink SPAP receives CE and New products released -
TGA clearance.
NEW Neuroscan Quik-Caps
Now in Gel-based Electrode Arrays
in Neoprene and Silicone and
Liquid-Electrolyte Hydro Net Arrays.
Growth in China -
Compumedics confirms
strength in China with over
$5M in sales in 2017.
$7.5 Million Sleep Diagnostic
CURRY [®] SCAN 7 Systems Contract with New product released -
Neuroimaging Suite is Beijing Bestmed Accelerates Profusion NeXus 360 -
released Compumedics Strength A Revolution in Laboratory
Compumedics introduces Neuvo512 Channel EEG [®] LTM in China. Management.
direct selling in France.
2010 - 2013 2015 2017 2019
2011
2012 2014 2016 2018 2020
ehealth Business Compumedics Signs New products released -
focus in Asia. $3.6 Million Distribution
New contract signed with Agreement with
Bestmed (China) with potential Fukuda Denshi Co., Japan
25 YEARS revenue of US$5 million over Fukuda Denshi Co. becomes
OF DIAGNOSTICSEXCELLENCE the next three years growing to Compumedics’ new neuro
US$13.2 million within five years. diagnostic distributor in Japan.
Compumedics celebrates The deal further underpins
its 25 Year Silver Jubilee Company has now secured total Grael [®] PSG Grael [®] LT EEG Compumedics’ on-going growth
Anniversary. contracts for its eHealth platform in Asia and opens a new market
with potential incremental revenue New Grael [®] Range released for for Compumedics existing product
Neuvo [®] LTM, world’s first 512 of US$9.1 million over the market - Grael [®] PSG, Grael [®] LT and range – neuro-diagnostic and
channel wall system is released next three years. updates to Grael [®] and Grael [®] EEG monitoring products – in Japan. CURRY [®] 9 -
to market - the Ultimate Long-term Monitoring System. New products released - New e-Health Somfit [®] consumer New product released - Compumedics Neuroscan releases the latest in the CURRY [®]
product is developed -
GraelHigh-Definition EEG is released to market. [®] -HD EEG - Profusion EEG5 - World class EEG diagnostic software. ONsight Ambulatory Video EEG Solution™ A.V.S Neuroimaging Suite. ProFusion Sleep 5 & EEG 6 Latest generation ProFusion
Profusion Sleep4 - Monitor your Software suite for PSG and EEG
World class PSG patient’s home updated with even more user-
diagnostic software. ����� [®] Night ambulatory studies with CONFIDENCE! friendly features and functionality.
EEG with Video
Compumedics and KRISS (Korea recording in
Research Institute of Standards “Real Time”!
and Science) officiates technology
transfer agreement and MOU
for new advanced MEG.
Grael [®] -HD EEG
Successful completion of $6.5M
capital raising
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BOARD OF DIRECTORS
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Compumedics is committed to developing a world class working environment that rewards individuals for the contributions they, and their teams, make to the business each year. Compumedics is proud of the diversity of its people, and continues to develop its people infrastructure under the guidance of the Senior Management Team and the Board.

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Dr. David Burton, Ph.D.

Executive Chairman, CEO

Dr. David Burton, Ph.D., is the founder, Chairman and CEO of Compumedics. After establishment of Compumedics the company was listed on the ASX in 2000, and has been awarded 24 awards for design, innovation, business and exports including the Australian Exporter of the Year in 1998 and Small Business of the Year in 1999.

Dr. Burton started his career at the Bureau of Meteorology, where he studied radar techniques and electronic equipment. He founded Linear Transfer Pty Ltd, which designed, manufactured and marketed high fidelity recording and sound equipment. He was awarded an Associate Diploma in Engineering (Electronics) by the Royal Melbourne Institute of Technology and a Ph.D. (Eng. Sc.) by Monash University, Melbourne (Australia). Dr. Burton’s engineering background includes the design and project management of Compumedics’ first sleep laboratory and portable sleep systems. Dr. Burton has authored 150 patents or patent applications across more than 20 families of patents that form part of Compumedics’ intellectual property.

Dr. Burton has served as an advisor for the Victorian Government as a member of the Council for Knowledge, Innovation, Science and Engineering (KISE), being the Victorian Government’s key advisory body on issues and policies focusing on science and innovation.

Dr. Burton was presented the Clunies Ross National Science and Technology Award in 2002 for his development of innovative sleep monitoring technology. He was awarded the 2003 Centenary Medal by the Prime Minister and Governor General of Australia for outstanding contribution to science and technology, particularly public science policy. In 2003 Dr. Burton was awarded the Ernst & Young Victorian Entrepreneur of the year award for technology, communications, E-commerce and life sciences. In 2007 Dr. Burton was inducted into the Victorian Manufacturing Hall of Fame in recognition of manufacturing achievements and world-wide medical device exports.

Dr. Burton served as a Victorian Government adviser as a Board member of the Design Victoria (2008-2011), was appointed to the Academy of Technological Science and Engineering (ATSE) committee in 2012 and in recognition of his outstanding contribution to the profession of Biomedical Engineering and was awarded the 2012 David Dewhurst Award by Engineers Australia, College of Biomedical Engineers.

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Mr. David Lawson

Executive Director

Mr Lawson has been Chief Financial Office and the Company Secretary of the Company for over nineteen years. In that time, Mr Lawson has been extensively involved in the development of the Company including the Initial Public Offering of shares in the Company, the subsequent offshore acquisitions in the US and Germany, private equity placements and the recent refinancing of the Company. Mr Lawson also has been involved in the operational turn around of the Company and brings a significant amount of experience and knowledge to the Board.

Mr. Tucson Dunn

Non-Executive Director

Currently working with JLM Investment, (USA) as CEO of Healthcare where he is responsible for healthcare ventures.

Prior to joining JLM, Mr. Dunn served as Managing Director of Fosun Healthcare Holdings in Shanghai China. Mr. Dunn has over 25 years of international healthcare leadership experience developing and managing hospitals, clinics and related business throughout Asia, Middle East, Europe and USA.

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SENIOR MANAGEMENT

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Dr. David Burton, Ph.D. Executive Chairman, CEO

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Warwick Freeman Chief Technology Officer

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David Lawson Executive Director, Chief Financial Officer & Company Secretary

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Christoph Witte General Managing Director DWL Compumedics Germany GmbH

Your World of Sleep and Neuroscience

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World-Class
Sleep
Software
Web-based
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From Clinical to Research

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World-Class
Neurology &
Brain Research
Software
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O V E R T H I RT Y
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www.compumedics.com

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