Medicalgorithmics S.A. — Earnings Release 2024

May 20, 2024

Report Content Subject:Medicalgorithmics Has Recovered Nearly 50% of US Sales Compared to Q42023

CurrentReport No: 8/2024

Date: May 20,2024

Legal Basis:Article 17(1) of the MAR Regulation - Confidential Information

The ManagementBoard of Medicalgorithmics S.A., based in Warsaw (the _quot;Company_quot;; the_quot;Issuer_quot;), informs that the Company has estimated the value ofrecurring, average monthly revenues solely from ECG data analysisservices from the portfolio of contracts with three diagnostic centers(IDTFs) in the USA at USD 110.1 thousand per month (approximately PLN440 thousand at an exchange rate of USD/PLN 4.0), which the Managementconsiders a realistic and even conservative scenario.

The publishedvalue of estimated revenues of USD 110.1 thousand per month wascalculated as an average for the next 12 months (from May 2024 to April2025) for the three clients in the USA who started commercial use of theCompany's AI algorithm software between February 1 of this year and thedate of this report's publication.

This valueincludes the Company's estimated sales growth from these contracts (notcontractually guaranteed). Additionally, during this period, the Companygenerated approximately PLN 740 thousand in revenues from the sale ofPocket IV devices, which, being non-recurring, were not included in theabove estimates. Including them would significantly increase this value;however, these devices will generate significant future revenues fromECG analysis services.

This value marksa significant milestone in achieving the Company's goal of rebuildingsoftware services sales in the US market to the level of Q4 2023,amounting to an average of PLN 0.9 million per month. The Company hasachieved 49% of this goal in terms of the average 12-month value of ECGanalysis service sales (excluding device sales).

Additionally,the first revenues from these clients were achieved in February thisyear, and the invoiced revenues in April this year from the twocontracts launched by that time amounted to approximately USD 81.0thousand (approximately PLN 320.0 thousand), which represents 36% of thegoal.

The total valueof ECG analysis services and Pocket IV device sales in the USA in Q12024 amounted to PLN 1.2 million (including PLN 740 thousand from PocketIV device sales) and originated entirely from contracts launched thisquarter under the new strategy of offering ECG analysis services throughthe Company's AI software using third-party or in-house devices, in anon-exclusive model in the USA.

In line with itsgoals, the Company maintains the objective of launching at least twocontracts per quarter (from the USA or the global market).

This assumptionallows us to estimate that, by achieving the average revenues and thenumber of new clients assumed in this report, the Company will achievethe goal of rebuilding sales in the US market to Q4 2023 levels no laterthan the turn of Q3 and Q4 of this year. Additionally, the Companyexpects further non-recurring equipment orders, which will acceleratethe achievement of this goal.

The Company willinform, through current reports, about further progress and milestonesin executing the strategy and achieving the goal of rebuilding sales inthe US market to Q4 2023 levels and reaching the threshold of generatingpositive cash flows, including:

a) significantchanges in the estimated average monthly value of the contract portfolio,

b) thecommercial launches of additional contract portfolios, and

c) theacquisition of individual significant contracts.