Medicalgorithmics S.A. — Regulatory Filings 2023

Oct 11, 2023

Subject:Information on Medicalgorithmics S.A. signing an agreement with aNASDAQ-listed tech company that is a leading entity in the non-invasivecardiac monitoring diagnostic sector in the US market

CurrentReport No.: 30/2023

Date ofpreparation: 10 October 2023

Legal basis:Art. 17 para. 1 of the MAR Regulation - confidential information.

The Board ofMedicalgorithmics S.A., based in Warsaw (_quot;Company_quot;; _quot;Issuer_quot;), announcesthat on 10 October 2023, the Company entered into an agreement with oneof the top 3 leading entities (_quot;Partner_quot;) in the non-invasive cardiacdiagnostic and monitoring industry based in the United States, primarilyoperating in the US market, and publicly listed on NASDAQ.

The purpose ofthe Agreement is to allow the Partner to evaluate the potential use ofthe Company's technology integrated with the Partner's EKG signalrecorder. To this end, the Company's software will be integrated withthe Partner's EKG signal recorder by developing dedicated softwareessential for this evaluation (_quot;Software_quot;). As per the Agreement, afterthis evaluation, the next phase of collaboration may be a separateagreement regarding the joint undertaking of the CE certificationprocess (MDR EU Certificate) and obtaining other required permits forcommercializing the Partner's integrated technology with the Company'ssoftware. In line with the Agreement, if the Company obtains the EU MDR(EU Certificate) only for the dedicated Software within 6 (six) monthsof application submission, the Company will receive a fee of $250,000.00USD (approx. 1.1 PLN million). Furthermore, the Agreement confirms bothparties' interest in entering into a partnership agreement concerningthe Partner's continued use of the Company's products and services.

For theAgreement, the Company will utilize its artificial intelligence-basedcardiac analysis tools and software and tailor them for processing EKGsignals from the Partner's devices. After completing the softwareintegration of the Company with the Partner's devices, resulting in thededicated Software creation, the parties will collaborate for thetechnical assessment phase. During this cooperation stage, the Agreementforesees the Partner creating teams that will be trained by the Companyto handle the Software. The Company will train designated Partneremployees on the Software, enabling the Partner's employees to evaluateworkflow, clinical interface tools, system performance, and EKG analysis.

The Agreementaligns with the Company's strategy adopted after Biofund CapitalManagement LLC became its major shareholder and published in the form ofthe Issuer's current report No. 16/2023 dated 19 June 2023. The Companyis now in the phase of implementing this strategy by acquiringcommercial partners in a non-exclusive model. The Company has informedof lesser-scale agreements concerning integration services or letters ofintent in press releases.

Upon assessingthe US market, the Company determined that the counterparty with whichthe Company signed this Agreement is a significant player in the USmarket, it is one of the top 3 entities in the non-invasive cardiacdiagnostic and monitoring industry in the USA, both in terms of thenumber of patients they monitor annually and the yearly revenuesgenerated from cardiac ECG monitoring, publicly listed on NASDAQ. Theinitiation of this collaboration, which foresees the technologyevaluation, integration with the counterparty's system, and dedicatedsoftware creation, has significant implications for the Company'sstrategy implementation.

Concurrently,the Company announces that the parties are actively examining furthercollaboration possibilities. If a decision is made regarding continuedcollaboration, a separate agreement on this matter will be entered,which the Company will promptly report in a separate current report.