USCOM LIMITED — Annual Report 2018

Aug 21, 2018

ASX MEDIA RELEASE

Uscom Annual Report 2018

Total Revenue – $2.86M Cash on hand – $2.49M Cash Consumption - $1.70M R&D, regulatory & other non-recurring costs - >$1.50M Six-year compound growth in total Revenue – 22% per year New China operations established

SYDNEY, Australia, Tuesday 21[st] August 2018: Uscom Limited (ASX code: UCM) (the Company or Uscom ) a cardiovascular and pulmonary medical device company, today released its Appendix 4E – Annual Results for the 2018 financial year. The results in the attached Appendix 4E are reported in Australian dollars.

Summary

Total annual revenue - $2.86M (down 18%) Cash on hand – $2.49M (up 50%) Total shareholder equity - $4.84M (up 28%) Operating cash consumption - $1.70M R&D, regulatory & other non-recurring costs - >$1.50M Six-year compound growth in total revenues – 22% per year Five-year compound growth in annual cash receipts – 27% per year

Total Annual Revenue

==> picture [342 x 217] intentionally omitted <==

----- Start of picture text -----

$4,500,000
$4,000,000
$3,498,959
$3,500,000
$2,936,504
$2,861,708
$3,000,000
$2,500,000
$2,039,426
$2,000,000
$1,377,716
$1,500,000
$864,099 [$1,010,942 ]
$1,000,000
$500,000
$0
2012 2013 2014 2015 2016 2017 2018
----- End of picture text -----

Uscom annual total revenues demonstrating a decrease of 18% in 2018, while the trend line demonstrates a six-year compound growth rate of 22% pa.

Uscom Limited (ABN 35 091 028 090) Suite 2, Level 8 66 Clarence Street, Sydney NSW 2000 Australia T: +612 9247 4144 E: info@uscom.com.au W: www.uscom.com.au

ASX MEDIA RELEASE

The 18% dip in 2018 revenue was related to the interruption of manufacturing during relocation, expansion and re-approval of the company’s manufacturing facility spanning more than three months, The implementation of Uscom’s new China strategy also disturbed China sales. This is now settling and sales are expected to resume on trend, while the launch of our new products are expected to accelerate growth.

Cash consumption for the period was affected by front end spending on the relocation (>$200K), contracted R&D associated with Uscom product development ($0.85M) and European grants ($300k) with over $100K spent on regulatory applications. Thus ~$1.5M spend of the company’s $1.7M annual cash consumption for the year was attributable to R&D, regulatory and relocation.

Employee benefits for the period were down 24%, while the Chairman/CEO’s remuneration was down 61%.

The head office relocation was to expand manufacturing capacity in preparation for the anticipated increased demand from expanding China and US operations, and to facilitate BP+ manufacturing as regulatory certifications are received. This relocation further delayed orders as new regulatory approvals were necessary prior to resumption of manufacturing. Uscom’s new China operation is anticipated to grow rapidly over the next 12 months with significant uplift expected as new approvals are received.

Operational Highlights of FY 2018:

1. BP+ and BP+ Reporter released and prepared for launch

2. BP+ and BP+ Reporter CFDA and FDA applications (four applications each)

3. BP+ CE approval

4. SpiroSonic and SpiroReporter development

5. SpiroSonic and SpiroReporter CFDA and FDA regulatory applications (four applications each) 6. Relocation to expanded Sydney manufacturing facility to meet anticipated manufacturing demand

6. Establishment of Uscom China – new office, people, sales model, IP and regulatory, with partnership opportunities

7. Cornerstone international, Beijing based bio-investor acquires > 17% of Uscom and boosts capital reserves

8. US direct sales expansion in preparation for FDA and new product launches

Executive Chairman of Uscom, Associate Professor Rob Phillips said “ This was an exciting year for Uscom as we invested in expanded manufacturing, growing sales and distribution, and preparing for the launch of seven new products across multiple continents. Founding our company, acquiring two others, developing ten products and establishing global manufacturing, sales, marketing and distribution, and educating clinicians on new technologies to save patient’s lives has taken longer and cost more than we thought. But the opportunity is much greater than we ever anticipated. Uscom is a great healthcare investment having achieved 22% CAGR for the last 6 years as we invested in the foundations for global growth. We are now positioned for the surge in growth these new investments in the China, European and US markets will generate.”

Uscom Limited (ABN 35 091 028 090) Suite 2, Level 8 66 Clarence Street, Sydney NSW 2000 Australia T: +612 9247 4144 E: info@uscom.com.au W: www.uscom.com.au

ASX MEDIA RELEASE

About Uscom

Uscom Limited (UCM) : An ASX listed innovative medical technology company specialising in development and marketing of premium non-invasive cardiovascular and pulmonary medical devices. Uscom has a mission to demonstrate leadership in science and create noninvasive devices that assist clinicians improve clinical outcomes. Uscom has three practice leading suites of devices in the field of cardiac, vascular and pulmonary monitoring; the USCOM 1A advanced haemodynamic monitor, Uscom BP+ central blood pressure monitor, and the Uscom SpiroSonic digital ultrasonic spirometers. Uscom devices are premium resolution, noninvasive devices which deploy innovative and practice leading technologies approved or submitted for FDA, CE, CFDA and TGA regulatory approval and marketing into global distribution networks.

The USCOM 1A : A simple to use, cost-effective and non-invasive advanced haemodynamic monitor that measures cardiovascular function, detects irregularities and is used to guide treatment. The USCOM 1A device has major applications in Paediatrics, Emergency, Intensive Care Medicine and Anaesthesia, and is the device of choice for management of adult and paediatric sepsis, hypertension, heart failure and for the guidance of fluid, inotropes and vasoactive cardiovascular therapy.

The Uscom BP+ : A supra-systolic oscillometric central blood pressure monitor which measures blood pressure and blood pressure waveforms at the heart, as well as in the arm, information only previously available using invasive cardiac catheterisation. The Uscom BP+ replaces conventional and more widespread sub-systolic blood pressure monitors, and is the emerging standard of care measurement in hypertension, heart failure and vascular health. The Uscom BP+ provides a highly accurate and repeatable measurement of central and brachial blood pressure and pulse pressure waveforms using a familiar upper arm cuff. The BP+ is simple to use and requires no complex training with applications in hypertension and pre-eclampsia, heart failure, intensive care, general practice and home care. The Uscom BP+ is supported by the proprietary BP+ Reporter , an innovative stand alone software solution that provides a digital platform to archive patient examinations and images, trend measure progress over time, analyse pulse pressure waves and generate summary reports.

Uscom SpiroSonic digital multi-path ultrasonic spirometers : High fidelity, digital, pulmonary function testing devices based on multi path ultrasound technology. They require no calibration, are simple to disinfect, and are simple and accurate to use providing research quality pulmonary function testing in small hand held devices that can be used in research, clinical and home care environments. The devices can be coupled with mobile phone applications and proprietary SpiroSonic software platforms with wireless interfacing to provide remote telemonitoring of pulmonary disease. The devices are specialised for assessment of COPD, sleep disordered breathing, asthma, industrial lung disease and monitoring of pulmonary therapeutic compliance. The SpiroSonic devices are supported by the proprietary SpiroReporter , an innovative stand alone software solution that provides a digital platform to archive patient examinations and images, trend measure progress over time, analyse spirometry outputs and generate summary reports.

For more information, please visit: www.uscom.com.au

Uscom Contacts

Rob Phillips Executive Chairman rob@uscom.com.au

Brett Crowley Company Secretary secretary@uscom.com.au

Uscom Limited (ABN 35 091 028 090) Suite 2, Level 8 66 Clarence Street, Sydney NSW 2000 Australia T: +612 9247 4144 E: info@uscom.com.au W: www.uscom.com.au

ASX Media Release

Uscom Limited and its controlled entity ABN 35 091 028 090

ASX Preliminary final report – 30 June 2018

Contents

Results for announcement to the market	2
Dividends per share	2
Net Tangible Assets per ordinary share	2
Status of audit	2
Commentary	2
Financial highlights	2

Uscom Limited (ABN 35 091 028 090) Suite 2, Level 8, 66 Clarence Street , Sydney NSW 2000 Australia , T +612 9247 4144 F +612 9247 8157 www.uscom.com.au

ASX Media Release

Reporting period: Previous corresponding reporting period:

Financial year ended 30 June 2018 Financial year ended 30 June 2017

Results for announcement to the market

Revenues from ordinary activities	down	18%	to	$2,861,708
Lossfrom ordinary activities after tax attributable to members	up	9%	to	$1,960,923
Net Lossfor the period attributable to members	up	9%	to	$1,960,923

Dividends per Share

It is not proposed to pay a dividend.

Net Tangible Asset per Ordinary Share

	30	June 2018	30 June 2017
NTA backing		c0.027	c0.022

Status of audit

The accounts have been audited. The annual report, including the unqualified audit report is released the same time.

Commentary

Refer to Chairman’s Letter in 2018 Annual Report.

Financial highlights

Revenues from ordinary activities	$2,861,708
Loss from ordinary activities	$1,960,923
Sales Revenue	$2,168,051
Net operating cash outflow	$1,969,625
Net increase/(decrease) in cash held	$1,176,208
Cash held at end of the year	$1,663,565

Uscom Limited (ABN 35 091 028 090) Suite 2, Level 8, 66 Clarence Street , Sydney NSW 2000 Australia , T +612 9247 4144 F +612 9247 8157 www.uscom.com.au