USCOM LIMITED — Investor Presentation 2015

Jul 19, 2015

==> picture [88 x 98] intentionally omitted <==

Investor Presentation July 2015

Global Momentum

Rob Phillips

PhD(med), MPhil(med), FASE, DMU(cardiol) Associate Professor, Critical Care Research Group, School of Medicine, The University of Queensland CEO

The Measure of Life

Disclaimer

This presentation is intended to provide a general outline only and is not intended to be a definitive statement on the subject matter. The information in this presentation, whether written or verbal, has been prepared without taking into account the commercial, financial or other needs of any individual or organisation.

While Uscom (the "Company”) has taken due care in compiling the information, neither the Company nor its officers or advisors or any other person warrants the accuracy, reliability, completeness or timeliness of the information or guarantees the commercial or investment performance of the Company. Certain information may relate to protected intellectual property rights owned by Uscom. By viewing this presentation the viewer accepts the terms of the accompanying Company NDA. The information does not constitute advice of any kind and should not be relied on as such. Investors must make their own independent assessment of the Company and undertake such additional enquiries as they deem necessary or appropriate for their own investment purposes. Any and all use of the information is at your own risk.

==> picture [66 x 79] intentionally omitted <==

2

==> picture [590 x 357] intentionally omitted <==

See video at news.bbc.co.uk/2/hi/uk_news/england/nottinghamshire/8525901.stm or on Uscom YouTube channel

==> picture [66 x 79] intentionally omitted <==

3

Uscom Vision

Company of the Year, 2014 Johnson & Johnson Innovation Industry Excellence Awards

“A milestone driven Australian bio device company with real products, real revenue and real growth which is approaching profitability”

==> picture [368 x 47] intentionally omitted <==

==> picture [204 x 90] intentionally omitted <==

==> picture [37 x 44] intentionally omitted <==

4

Current Business

• Premium noninvasive cardiovascular monitoring devices

• Addressing the growing threat of superbugs

• Validated, clinically accepted, cost and life saving devices

• Patent protected with regulatory approvals and full ownership of IP

• Rapidly growing revenues in major markets and new untouched markets

2015 Financials

• Corporate Board & Management 2015 Financials

• ASX listed (UCM)  Rob Phillips, Chairman & CEO  Sales +125% H1 2015 YOY[]  Headquartered in Sydney  Sheena Jack, Director  Revenue +147% H1 2015  (HCF, Moneytime Health) YOY[] Market cap of $17m

• 80m shares on issue  Christian Bernecker, Director  Gross Margins ~ 78% (Stream) 

• Rob Phillips, Founder and Cash at bank $0.60m[** ] CEO, holds 21% of  Nick Schicht, General Manager  Company holds no debt company

==> picture [37 x 44] intentionally omitted <==

5

• Uscom half year reports

** Quarter ended 31 March

Current Products

USCOM 1A

Cardiac Output Monitor

==> picture [156 x 161] intentionally omitted <==

USCOM 1A

BP+

Blood Pressure Monitor

==> picture [222 x 123] intentionally omitted <==

==> picture [102 x 105] intentionally omitted <==

BP+

• World leading technology offering huge potential savings to global healthcare systems

• Next generation blood pressure monitoring providing central and brachial BP measurement

• Sold into hospitals, emergency departments, ICUs, anesthesia and paediatrics

• Growing global distribution and revenue

• Sold to hypertension & research clinics and ICUs

• Pulsecor acquired and integrated by Uscom in 2012 now preparing for mass market

Non-invasive, real time, beat-to-beat

haemodynamics

A stand-alone, non-invasive, accurate and compact system

6

Strong Competitive Advantage

USCOM 1A BP+

Cardiac Output Monitor

==> picture [156 x 161] intentionally omitted <==

USCOM 1A

Blood Pressure Monitor

==> picture [222 x 123] intentionally omitted <==

==> picture [102 x 105] intentionally omitted <==

BP+

• Measures flow at heart

• Measures pressure at heart

• Noninvasive – replaces catheters

• Noninvasive – replaces catheters

• Addresses superbug threat

• Superior to “arm” pressure

• Accurate, quick and simple to use

• Reduces drugs used

• Patent protected

• Patent protected

Disruptive devices which are superior to current products

==> picture [37 x 44] intentionally omitted <==

7

Targeting Strong Revenue Growth…

USCOM 1A

Cardiac Output Monitor

==> picture [156 x 161] intentionally omitted <==

USCOM 1A

BP+

Blood Pressure Monitor

==> picture [222 x 123] intentionally omitted <==

==> picture [102 x 105] intentionally omitted <==

BP+

• US$1.3bn global market with CAGR of 7.6%[** ]

• US$1.7bn global market with CAGR of 11.5%[** ]

• Increasing unit sales globally

• US$7m China distribution agreement signed[****]

• Australian reimbursement expected Q1 2016

• US reimbursement obtained for Q1 2016

• 80% Gross Margins & $12k profit / unit[***]

• 70% Gross Margins & US$1.1k profit / unit[***]

Global revenue opportunities only just beginning to be tapped, with two consecutive years of 60%[+] revenue growth[ *]

• 2014/15 FY figures unaudited

• ** Source: MedTech Insight; Transparency Market Research

• *** Average (figures vary from sale to sale)

• **** Distribution contingent on CFDA approval

==> picture [37 x 44] intentionally omitted <==

8

…to Continue Recent Trends On track to break even in 2016 by continuing 60%+ revenue growth

Sales Revenues

==> picture [228 x 181] intentionally omitted <==

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

$1,600k
Quarterly
$1,400k Cumulative Annual Sales
$1,200k
$1,000k
$800k
$600k
$400k
$200k
$0k
----- End of picture text -----

==> picture [235 x 34] intentionally omitted <==

Annual Net Loss

==> picture [381 x 223] intentionally omitted <==

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

2011 2012 2013 2104 2015 2016
$0k
-$500k
-$1,000k
-$1,500k
-$2,000k
-$2,500k

-$3,000k
----- End of picture text -----**

A number of key USCOM 1A and BP+ revenue drivers already in train, with June 2015 a profitable month **

==> picture [37 x 44] intentionally omitted <==

• Estimate

9

** June 15 figures unaudited

USCOM 1A Around the World

•• •[•][•][•] • •• • • • • • •• • • • • • • • • • • • • • • • • • • • Key Markets •[•] • 1. Nth America 2. Europe 3. AsiaPAC

Over 700 USCOM units sold worldwide

==> picture [37 x 44] intentionally omitted <==

10

Uscom Growth

Fluid, Sepsis

Hypertension & Vascular Health

& Heart Failure

• US 1.3bn market[ * ]

• US 1.7bn market[ *]

• CAGR of 7.6%[ *]

• CAGR of 11.5%[ *]

USCOM 1A

BP+

Cardiac Output Monitoring Blood Pressure Monitoring

==> picture [134 x 138] intentionally omitted <==

==> picture [122 x 124] intentionally omitted <==

COPD

& Asthma

• US 400m market[ *]

• CAGR of 6.5%[ *]

Unmet Need

Pulmonary Monitoring

?

Complementary products and technology

==> picture [37 x 44] intentionally omitted <==

11

• Source: MedTech Insight; Transparency Market Research

Thor Acquisition – the Next Step

==> picture [204 x 85] intentionally omitted <==

==> picture [160 x 98] intentionally omitted <==

==> picture [159 x 101] intentionally omitted <==

Uscom has signed an agreement to acquire 100% of Thor Laboratories *

Company Overview

2014 Financials

 High fidelity digital Doppler spirometry devices

• Sales revenue of $500k

 Established ISO manufacturing - 15 years

• Costs of $450k

 Global reach with CE, TGA and FDA approval

• Profits of $32k

 Reimbursement in multiple markets

• Cash, inventory and receivables of $350k

• Strong R&D and grant capabilities

• Gross margins of 70%+

Adding revenue, distribution, internationally accredited manufacturing, personnel and products

==> picture [37 x 44] intentionally omitted <==

12

• Agreement subject to DD and Uscom capital raise

Deal Rationale and Structure

==> picture [204 x 85] intentionally omitted <==

Revenue Synergies

• Established complementary distribution channels

• Complementary product sets

• Suited to huge China/US home care markets

• Cost & Development Synergies

• Low cost, established and accredited R&D/manufacturing

• New prototypes products already in testing

• Firm links with Budapest University

Combined Business is De-Risked

• Revenue diversification

Deal Structure

Total Consideration $1 million

= Upfront $700k cash

Earnouts

$100k cash (12 months) $100k cash (24 months) $100k shares (over 3 years)*

• Improved access to R&D grants

Acquisition includes $350k of cash, inventory and receivables

==> picture [37 x 44] intentionally omitted <==

13

• Consists of 500,000 shares (value based on a share price of $0.20)

Uscom Growth

Fluid, Sepsis

Hypertension & Vascular Health

& Heart Failure

• US 1.3bn market[ * ]

• US 1.7bn market[ *]

• CAGR of 7.6%[ *]

• CAGR of 11.5%[ *]

USCOM 1A

BP+

Cardiac Output Monitoring Blood Pressure Monitoring

==> picture [134 x 138] intentionally omitted <==

==> picture [122 x 124] intentionally omitted <==

COPD

& Asthma

• US 400m market[ *]

• CAGR of 6.5%[ *]

Thor Pulmonary Monitoring

==> picture [162 x 99] intentionally omitted <==

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

?
----- End of picture text -----

Complementary products and technology

==> picture [37 x 44] intentionally omitted <==

14

• Source: MedTech Insight; Transparency Market Research

Thor Manufacturing

==> picture [222 x 166] intentionally omitted <==

• Global approvals

• Manufacturing and R&D

• Experienced engineers

• Established reputation

• USCOM and BP+ reserve

• University Budapest links

==> picture [213 x 154] intentionally omitted <==

==> picture [214 x 144] intentionally omitted <==

==> picture [223 x 147] intentionally omitted <==

==> picture [217 x 144] intentionally omitted <==

Internationally ISO accredited medical device manufacturing

==> picture [37 x 44] intentionally omitted <==

15

Thor Products

Products in Market

Digital Doppler Spirometer Home use

With Diagnostics and WIFI Digital wifi spirometer

Professional System

Desktop with advanced software analytics

==> picture [182 x 115] intentionally omitted <==

==> picture [181 x 103] intentionally omitted <==

Products in Development

Prototype 1

Drug delivery measure

Prototype 2

Digital wifi spirometer

Prototype 3 Neonatal Asthma diagnostic

==> picture [182 x 121] intentionally omitted <==

==> picture [37 x 44] intentionally omitted <==

16

Uscom Post-Acquisition Manufacturing Products Distribution Sales Partners Revenue[] and R&D $1.0m 40 Thor 18 7 $2.5m 36 Uscom 3 2 Thor’s cost per head 2 products Attractive diversified Immediate 1/7 of Uscom’s to 9 products offering top line impact*

==> picture [37 x 44] intentionally omitted <==

17

• Estimated 2016 revenues

Acquisition and Growth

More products and increased distribution in US, Europe and Asia

2015	US	Euro	Asia	Revenue
1A	$0.2	$0.8	$1	$2
BP+	$0	$0	$0	$0
Thor	$0	$0.5	$0	$0

Revenue $2m

2020	US	Euro	Asia	Revenue
1A	$2	$2	$3	$7
BP+	$3	$3	$3	$9
Thor	$1	$1	$2	$4

Revenue $20m

$20m revenue in 2020 delivers a 5 year CAGR of 58%

==> picture [37 x 44] intentionally omitted <==

18

$20m Revenue by 2020

==> picture [44 x 15] intentionally omitted <==

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

Thor
----- End of picture text -----

Projected Revenues

==> picture [517 x 308] intentionally omitted <==

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

$18 m
$16 m
$14 m
$12 m
$10 m
$8 m
$6 m
$4 m
$2 m
$0 m
2015 2016 2017 2018 2019
----- End of picture text -----

==> picture [134 x 92] intentionally omitted <==

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

BP+
----- End of picture text -----

==> picture [94 x 97] intentionally omitted <==

==> picture [69 x 15] intentionally omitted <==

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

USCOM
----- End of picture text -----

==> picture [118 x 112] intentionally omitted <==

$20m revenue in 2020 delivers a 5 year CAGR of 58%

==> picture [37 x 44] intentionally omitted <==

19

Key Goals & Milestones

• Core focus is driving distribution to increase sales and grow revenue

• Key steps are reimbursement, regulatory approval and more distributors

• Active IR/capital markets program to address liquidity

• Also boosting resources to bed down Thor acquisition

Quarter 3 Quarter 4 Quarter 1 Quarter 2 2015 2015 2016 2016 Completion of USCOM 1A Australian BP+ Chinese Thor Integration Capital Raise IR program Reimbursement Approval Distribution Begins Completion of Thor Senior Sales & BP+ CFDA US Sales from BP+ Acquisition Marketing Hire Approval Reimbursement

Driving towards $20m revenue in 2020

==> picture [37 x 44] intentionally omitted <==

20

Key Business Risks & Mitigants

 Thor integration & key staff retention  Ongoing Thor business management  Competitiveness of market sectors  Thor distraction from USCOM & BP+  Regulatory costs and timelines  Distribution & revenue growth  Working capital requirements to support additional sales Key Risks		 Earn outs in Thor deal structure  Senior sales and marketing resource; increased marketing spend  Product diversification  Resources focussed on integration  Key Uscom and Thor staff  Senior sales and marketing resource  Additional WC in capital raise Key Mitigants

==> picture [37 x 44] intentionally omitted <==

21

July 2015 Capital Raise

 Raise managed by Patersons Securities

 Cornerstone private placement (PP) and share purchase plan (SPP)

Indicative Raise Overview

 10m PP + 2m SPP shares (vs. 80m currently on issue) Issuance Volume[ ]  3.3m options Issue Price $0.15 per share  Attaching Option 1-for-3 unlisted option  Strike $0.25 and maturity 31 July 2017  Available to PP subscribers only Capital Raise Target[] $1.8m Issuance Structure $1.5m PP and $0.3m SPP  Intended Use of Funds $1m Thor purchase and integration  Balance: sales, marketing, regulatory, reimbursement, working capital and IR

Capital facilitates Thor acquisition & integration and Uscom’s growth plans

==> picture [37 x 44] intentionally omitted <==

22

• Uscom reserves the right to take additional capital, but is under no obligation to do so

Uscom

Thor Acquisition – Value at many levels

New product suite ✓ Accredited manufacturing ✓ Skilled personnel ✓ Revenue ✓ Increased distribution ✓

==> picture [37 x 44] intentionally omitted <==

23

==> picture [88 x 98] intentionally omitted <==

Appendices

Uscom Products

Three product ranges each at commercialization phase

	Concept	Product	Pilot	Validation	Regulatory	Revenue	Global Distribution	Profit 2016
USCOM	✓	✓	✓	✓	✓	✓	✓	±✓
Uscom BP+	✓	✓	✓	✓	✓	✓	✓	±✓
Thor	✓	✓	✓	✓	✓	✓	✓	✓

Turning unrecognised IP into balance sheet value

==> picture [37 x 44] intentionally omitted <==

25

Regulatory Strategy

==> picture [204 x 85] intentionally omitted <==

 All devices CE and TGA approved

 Device FDA approval in process  Next step is CFDA approval

	USCOM 1A	BP+	Thor
FDA	✓	✓	P
CE	✓	✓	✓
CFDA	✓	P	--
TGA	✓	✓	✓

• ✓ Approved

• P[Preparation for submission ]

• Not yet submitted

==> picture [37 x 44] intentionally omitted <==

26

Reimbursement Strategy

Reimbursement consultant appointed

	USCOM 1A	Uscom BP+	Thor
MSAC (Aus)	Initiated	Background	Existing
CPT (USA)	Background	Granted	Existing
NHS (UK)	Review	Background	Existing
ROW	-	-	-

Timelines

• USCOM 1A : Australia Aug 2015; UK Oct 15; US 2016

• BP+ : Australia Nov 2015; UK Nov 2015

Thor devices mostly reimbursed

==> picture [37 x 44] intentionally omitted <==

27

USCOM Saving Lives

National ICU Study – Sepsis and septic shock mortality 6yr Australian Practice Audit ANZICS CORE Adult database

==> picture [587 x 265] intentionally omitted <==

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

30
25
20
15
BUSH protocol
10
introduced
5
0
2006 2007 2008 2009 2010 2011 2012
Bathurst USCOM Australia Australian Rural
----- End of picture text -----

Smith BE, Phillips RA, Madigan V, West MJ. Decreased Mortality, Morbidity and Emergency Transport in Septic Shock; A New Protocol Based on Advanced Noinvasive Haemodynamics (USCOM) and Early Antibiotics. Crit Care Med 2012; 40(12):1023. doi: 10.1097/01.ccm.0000424114.76434.7a

==> picture [37 x 44] intentionally omitted <==

28

USCOM Saving Lives

• 10 Million women get pre-eclampsia per year

• 76,000 mothers die per year (200 per day) and 500,000 unborn babies (1300 per day)

• Early detection and treatment associated with better

outcomes

• USCOM detects pre-eclampsia at 5 weeks not 20 weeks

as current

• USCOM recommended as pregnancy screening method to detect pre-eclampsia – one USCOM in every

==> picture [169 x 232] intentionally omitted <==

obstetrician’s office?

• G.M. Tiralongo, D. Lo Presti, I. Pisani, G. Gagliardi, R.L. Scala, G.P. Novelli, B. Vasapollo, A. Andreoli, H. Valensise. Assessment of total vascular resistance and total body water in normotensive women during the first trimester of pregnancy. A key for the prevention of preeclampsia. Hypertension pregnancy 2015; 5(2):DOI: http://dx.doi.org/10.1016/j.preghy.2015.02.001

==> picture [37 x 44] intentionally omitted <==

29

USCOM Reducing Costs

National ICU Study 6 yr Australian Practice Audit ANZICS CORE Adult database Mean Cost per Admission 2007- 2012

==> picture [456 x 198] intentionally omitted <==

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

$60,000
$48,000
$50,000
$41,645
$40,000
$30,000 $26,273
$20,000
$10,000
$0
Australian Australian Rural BUSH
----- End of picture text -----

Mean cost per hospitalisation for sepsis and septic shock patients between 2007 - 2012 assuming $1233 per ward day and $4427 per ICU day.

Smith BE, Phillips RA, Madigan V, West MJ. Decreased Mortality, Morbidity and Emergency Transport in Septic Shock; A New Protocol Based on Advanced Noinvasive Haemodynamics (USCOM) and Early Antibiotics. Crit Care Med 2012; 40(12):1023. doi: 10.1097/01.ccm.0000424114.76434.7a

==> picture [37 x 44] intentionally omitted <==

30

De-Risked Technology

Featured in 400+ peer reviewed publications and presentations

==> picture [95 x 126] intentionally omitted <==

==> picture [91 x 108] intentionally omitted <==

==> picture [98 x 113] intentionally omitted <==

==> picture [95 x 116] intentionally omitted <==

==> picture [89 x 105] intentionally omitted <==

==> picture [91 x 103] intentionally omitted <==

==> picture [85 x 103] intentionally omitted <==

==> picture [87 x 103] intentionally omitted <==

==> picture [86 x 104] intentionally omitted <==

==> picture [75 x 99] intentionally omitted <==

Sepsis, Heart failure, Hypertension, Fluid management, Emergency, Pediatrics, Cardiac transplantation, Electrophysiology, Emergency transport, Anesthesia, Liver transplantation, ICU, Pre-eclampsia, Pulmonary hypertension, Nurse outreach, Organ procurement, Haemodialysis, Neonates, infants, Children etc……..

==> picture [37 x 44] intentionally omitted <==

31

USCOM 1A Competitive Advantage

Method	Manufacturer	Technology	Rel+Rep	Non- invasive	Simple	Cost	Portable	SV beat to beat
USCOM 1A	Uscom	Doppler	✓	✓	✓	✓	✓	✓
BioZ	Samsung	BioImpedance	✗	✓	✓	✗	✓	✗
NiCOM	Cheetah	BioReactance	✗	✓	✓	✗	✓	✗
Nexfin	Bmeye	APP	✗	✓	✓	✓	✓	✗
CardioQ	Deltex	Doppler	✓	✗	✓	✗	✓	✗
LiDCO	LiDCO	LiCl dilutio +APP	✓	✗	✗	✗	✗	✗
LiDCOrapid	LiDCO	APP	✗	✗	✓	✗	✗	✗
PiCCO (mod Tx + PP)	Pulsion	APP	✓	✗	✗	✗	✗	✗
FloTrac	Edwards	APP	✗	✗	✗	✗	✗	✗
PAC (Tx)	Many	Thermodilution	✗	✗	✗	✗	✗	✗

==> picture [37 x 44] intentionally omitted <==

32

Testimonials

“This machine is saving lives, there are no two ways about it.”

Professor Brendan Smith, Anesthetist, Intensivist and Emergency Physician, N.S.W. Dept of Health, Australia

“USCOM has changed the way I look at the cardiovascular status of my patients.

It’s part of the initial shock evaluation and monitored regularly thereafter…. USCOM has now been established as the standard of care.”

Dr Akash Deep, Director of Paediatric ICU, King's College Hospital, London

“The USCOM device is a simple method of accurately and noninvasively measuring central circulation, a goal of cardiology for many years. The device has the potential to change the way we approach management of sepsis, heart failure and hypertension.”

Professor Malcolm West, Cardiologist, Mayne Professor of Medicine at The University of Queensland School of Medicine, Brisbane, Australia and Uscom Medical Advisory Board Member.

“I have used USCOM for over 5 years now on our very sick children, and use it to guide management. We are now beginning multi-centre, global research which will define the way USCOM is used in Paediatric Departments across the world.”

Dr Joe Brierley, Consultant Intensivist, Great Ormond Street Hospital for Sick Children, London, UK.

“The USCOM device is really good; I use it in all my aneasthetics. I think there should be one on every ICU bed and on every anaesthetic patient.”

Dr Steve Woodford, Consultant Anaesthetist, circulatory researcher at Australian School of Advanced Medicine, and Uscom Investor,

“To parents and doctors this machine, USCOM, is priceless. This machine is thought to have saved baby Abbie’s life.

BBC Documentary “New machine helps save babies life”, 2010, Nottingham Children’s Hospital

==> picture [37 x 44] intentionally omitted <==

33

==> picture [163 x 195] intentionally omitted <==

BP+ Competitive Advantage

==> picture [87 x 88] intentionally omitted <==

==> picture [121 x 83] intentionally omitted <==

==> picture [97 x 69] intentionally omitted <==

==> picture [125 x 81] intentionally omitted <==

Uscom BP+	TensioMed	BPLab	IEM	Centron	AtCor
Australia	Hungary	Russia	Germany	UK	Australia
USD 3,950	USD 6,000	USD 7,000	USD 7,000	USD 6,300	USD 14,000
1 min	2 min	2 min	2 min	1 min	1 min
Stand-alone	ABP, needs computer	ABP, needs computer	ABP, needs computer	Stand-alone	Needs computer
CE, FDA, TGA	CE	CE	CE, FDA	CE	CE, FDA
Aortic + brachial waveform	Central systolic BP	Rough waveform	Rough waveform	Rough waveform	Rough waveform
Physical model	Statistical regression	Transfer function	Transfer function	Transfer function	Transfer function

==> picture [37 x 44] intentionally omitted <==

34

Why ?

Independent research from Cambridge University, Weill Cornell, University of California, Wales Heart Institute – BP+ = Four stars

==> picture [604 x 274] intentionally omitted <==

BP+ is on the international space station

==> picture [37 x 44] intentionally omitted <==

35

McEniery CM, Cockcroft JR, Roman MJ, Franklin SS, Wilkinson AB. Central blood pressure: current evidence and clinical importance. Euro Heart J 2014;doi10.1093/ eurojeartj/eht565

BP+ US Reimbursement

==> picture [200 x 81] intentionally omitted <==

==> picture [102 x 105] intentionally omitted <==

==> picture [221 x 123] intentionally omitted <==

US Category 1 CPT Code recommended by AMA CPT panel *

 CPT Category 1 Code (9300X1)

 Non-invasive calculation and analysis of central arterial pressure waveforms with interpretation and report

 Effective January 2016

• BP+ has US FDA clearance

Key revenue driver for BP+ in the most important

market globally

==> picture [37 x 44] intentionally omitted <==

36

Broad Patent Portfolio

Core technology patent protected, with patents running to 024 and beyond

==> picture [155 x 80] intentionally omitted <==

==> picture [98 x 98] intentionally omitted <==

USCOM 1A

BP+

• 22 granted patents

• 34 granted patents

• 5 pending applications

 4 registered trademarks

 2 registered trademarks

IP protected in key markets

==> picture [37 x 44] intentionally omitted <==

37

Growth in Distribution

Distribution Agreements

==> picture [420 x 273] intentionally omitted <==

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

40
34
35
30
27
25
20
15
12
10
5
0
2013 2014 2015
----- End of picture text -----*

Further distribution through Thor and greater focus through recent hires

==> picture [37 x 44] intentionally omitted <==

38

• FY to date

George Ferenczi

• Founder of THOR

• 15 years building Thor and Thor products

• Innovative and global leading bio-engineer

• Specialist in Computer Engineering

• 10 years global executive management

• Experienced in channel management and distribution

• Will join Uscom as Manager of Product Development and manager of new operations

==> picture [208 x 253] intentionally omitted <==

George to split his time between Sydney and Budapest

==> picture [37 x 44] intentionally omitted <==

39

Spirometry

Lung disease increasing worldwide with reduced air quality – Asthma, COPD, Industrial lung disease

Spirometry

• Measures the volume, and rate of inspired and expired air to identify disease (Asthma and COPD), investigate SOB (short of breath), monitor disease and therapy, industrial disease detection, pre-op assessment, lung function recovery (smoking etc.)

Digital Doppler Spirometry

• Spirometry using Digital Doppler

• Identical technique to Uscom 1A

Market

• Asthma – 250-300m sufferers worldwide and 250,000 deaths and increasing

• COPD – 4th leading cause of US death, one US death per 4 minutes, and 24m sufferers

• Estimated - $400m USD with CAGR 6.5%

==> picture [37 x 44] intentionally omitted <==

40

Post-Acquisition Revenue Drivers

• US BP+ Re-imbursement - CPT category 1 code (9300X1) effective January 2016

• Thor FDA (pending)

• USCOM 1A and BP+ sales pipeline growing (Pioneer + Europe)

• Increased distribution (Uscom + Thor) – 30 to 60 (+100%) increases revenue for all products

• New clinical science

• 9 products with consumables – attractive to higher volume distributors

Great revenue opportunities

==> picture [37 x 44] intentionally omitted <==

41