Medicalgorithmics S.A. — Regulatory Filings 2023

Oct 20, 2023

Subject:Notification of an Agreement between Medicalgorithmics S.A. and aPublicly Traded Global Arrhythmia Diagnosis Device Provider

CurrentReport No: 31/2023_#160;

Date ofPreparation: October 20, 2023_#160;

Legal Basis:Art. 17 para. 1 of MAR Regulation - confidential information._#160;

The Board ofMedicalgorithmics S.A. based in Warsaw (_quot;Company_quot;; _quot;Issuer_quot;) announcesthe signing, on October 20, 2023, of an agreement (Memorandum ofUnderstanding, _quot;Agreement_quot;) with a publicly traded device manufacturerwith global operations and significant emphasis on cardiac monitoringand arrhythmia diagnostic devices (_quot;Partner_quot;). The Agreement's objectiveis to assess potential long-term collaboration aiming for the jointcommercialization of the Issuer's cloud ECG diagnostic solutions. Thefirst step in assessing the potential of the partnership will be theimplementation of a commercial pilot program, during which the Companywill integrate and test the software with a selected Partner's client.The details of the paid pilot program, including the pricing forservices, especially the EKG analyses conducted by the Issuer, will bespecified in a separate agreement or pilot agreements. According to theAgreement the pilot program's goal is to evaluate the efficiencyenhancement and added value achieved in diagnostic processes by theclient and Partner using the Issuer's software, which incorporates cloudsolutions and artificial intelligence (AI) algorithms for ECGdiagnostics.

This Agreementmarks another step in implementing the Company's strategy adopted afterBiofund Capital Management LLC became its major shareholder, aspublished in the Issuer's current report No. 16/2023 dated June 19,2023.

The Partner,with whom the Company signed the Agreement, is a significant entity inthe medical technology market for cardiological applications and aglobal device provider in Europe, North America, Asia, Africa, and SouthAmerica. The Company believes that entering into this Agreement couldhave substantial potential due to the possible significant scale ofcollaboration and revenues for the Issuer. Should a decision be made tocontinue the collaboration after the commercial pilot program covered bythe Agreement, a separate agreement on this subject will be signed. Theseparate agreement would set the provisions of the potentialcollaboration, including provisions of a revenue-sharing model fromarrhythmia diagnostics of the shared Partner's clients affected by thecollaboration and pricing for the conducted services, especially EKGanalyses. If a cooperative agreement is concluded after conducting thepilot and mutual intentions are confirmed, the Company will immediatelyinform about it in a separate current report.