MICRO-X LIMITED — AGM Information 2018

Nov 20, 2018

Ltd

ACN 153 273 735

MX1 Annual General Meeting 2018 Micro-X: The End of the Beginning

Peter Rowland, Managing Director Wednesday 21[st] November 2018

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The MX1 Platform Technology Achievement The World’s First Electronic-Controlled X-Ray

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• Miniaturising X-Ray Sources

• FDA 510(k) & CE Mark approvals

• Micro-X now recognised globally

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The MX1 Core Business Model:

Developing & manufacturing innovative, ultra-lightweight, X-ray imaging products for global medical and security markets.

• Core technology is Carbon Nano-Tube (CNT) emitters

• Exclusively licenced from technology partner XinRay Systems

• Enables small size and electronic control of X-Ray tubes

• Path-to-market Partnership with global brand name, Carestream Health

• OEM supply ex-works Adelaide

• Follow-on product opportunities under discussion

• Leverage contracts with Australian Department of Defence & UK Government

• Unfulfilled need for deployable medical x-ray and stand-off IED imaging

• Appetite for a new paradigm in airport checkpoint security

• ADF as reference customer for MX1 brand development

• Prove new electronic beam 3-D imaging modality

• New products pioneer unique x-ray modality

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– First Product Now On Sale

Carestream DRX Revolution Nano

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• Carestream sales and marketing now taking orders

• In clinical use in US hospitals

• Initial user feedback very positive

• MX1 production deliveries against first order

• Air freight damage issues resolved

• Sales prospects strong

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The Long-Term Strategy Hasn’t Changed A journey of 1,000 miles starts with a single step

• Prove the CNT technology platform with the ‘Carestream DRX Revolution Nano’

Medical Security

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• Prove the MX1 team can deliver world-class innovation, design and manufacture

• Become established in both Medical and Security markets

• Create a Product Roadmap of opportunities where we can offer high customer value and there is no competitor

• Progress the opportunities in order of best risk/return

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Strategic Crossroads

The End of the Beginning

• We have invested in…..

• People, Culture, Technology, Partnerships

• Manufacturing, Facilities, Processes, Equipment, QMS, Regulatory Approvals,

• The platform technology, overcoming unexpected hurdles

• We have proven ourselves with a game-changing First Product

• The technology platform provides sustainable competitive advantage for the long-haul

• We have unique roadmap of high-margin products ahead with no competitors

• We have global x-ray industry leaders wanting to work with us

• How do we realise maximum value from these achievements?

• How do we accelerate the product revenues?

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Grand Alliance

Partnering to Accelerate Global Commercialisation

• Collaboration discussions have progressed well with a number of global radiology companies

• MX1 is looking for :

• A shared vision for technology and applications

• Investment to accelerate product development and commercialisation

• Technology synergy: 1 + 1 = 3

• New paths to market

• Access to additional resources for acceleration

• Project funding as well as corporate investment sought

• Expect an announcement in Q4 CY18

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Future Product Opportunity in Development

Rover

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• X-Ray tube re-designed for the more demanding, higher-energy exams used in trauma medicine

• Imaging tests for Australian Defence Force completed

• Operated up to 10kW (100kV, 100mAs)

• Australian Defence Force Radiologist imaging reviews shows full diagnostic quality

• Australian Army tender in evaluation.

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Future Product Opportunity in Development Mobile Backscatter Imager (MBI) for Counter-IED Assessment

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• Today Explosive Ordnance Disposal technicians exposed to high risk acquiring x-ray image to assess and render-safe IEDs

• • MX1 has demonstrated stand-off backscatter imaging to Australian Defence Force with 0.5mm resolution

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• Voice of Customer meetings conducted with Australian Defence Force and FBI & DoD in Washington DC

• Interest in product very strong

• New configuration of standalone imaging unit which can be picked up by any EOD robot

• More challenging weight target

• Addressable global market $1.8B

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Future Product Opportunity: Brain Perfusion CT Imaging

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• Multi-beam CT is small, light and affordable

• Potential fit to every ambulance

• Treatment can commence in Ambulance

• Addressable global market: $25B

• Stroke dichotomy: Thrombotic or Haemorrhagic? CT diagnosis must precede treatment

• Time to commencement of treatment biggest factor in recovery and on-going patient care costs.

• Stroke Ambulance is single-purpose due to large size of conventional CT imaging

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Future Product Opportunity:

3D Breast Imaging for Screening

• 2D projection x-ray imaging being replaced by 3D CT to improve diagnosis

• Pain from 20kg breast compression forces in current technology reduces patient participation in screening

• CNT technology product offers:

• No breast compression

• Short scan time

• No motion blur

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• Dual energy to improve detection

• Addressable global market: $1.3B

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Future Product Opportunity:

Bedside CT Imaging

• Risks in moving ICU Patients for a conventional CT scan

• Mobile Tomosynthesis Applications include:

• Coronary Artery CT, Pneumothorax, Pulmonary Tuberculosis, Mycobacterial Disease, Cystic Fibrosis

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• CT image slices shown below from proof-ofconcept imaging

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Future Product Opportunity: Airport Checkpoint X-Ray Security

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• Future Airport Checkpoint X-Ray concept uses same imaging module technology

• Combination Multi-beam CT & Backscatter with automated detection algorithms

• ECAC Detection Standards 3 & 4

• No divestment necessary - 1200 bags per hour possible (currently 200)

• Looking for global go-to-market partner

• Addressable global checkpoint CT market: $2.4B

• Contract from UK Government Future Airport Security Solutions

• “Finding Explosives in Electronics” leads to next-generation checkpoint x-ray

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MX1 Beyond the Crossroads Valuing the near-term Product Roadmap

• Commercialising product revenue quickly is important to derive most value

• The Grand Alliance allows parallel product development instead of serial

• Best products first

• Building Micro-X brand image by first product recognition also important

• NPV of the 9-year cashflows from these products (at 15% discount) points to a Billion dollar company.

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Questions
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