REG - Trellus Health PLC - Preliminary Results
23/04/2024 07:00
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RNS Number : 6004L Trellus Health PLC 23 April 2024
Trellus Health plc
("Trellus Health", the "Company" or the "Group")
Preliminary Results for the Full Year ended 31 December 2023
Pivotal commercial progress and cash runway further extended into mid-2025
LONDON, U.K. AND NEW YORK, U.S. (23 April 2024). Trellus Health plc (AIM:
TRLS), a health services company delivering innovative, scientifically
validated programs and technologies designed to facilitate the management of
chronic conditions, improve health outcomes and lower the costs of care,
announces its unaudited preliminary results for the year ended 31 December
2023.
Operational highlights (including post-period end)
● Business-to-business-to-consumer ("B2B2C") agreement signed with a large US
national health plan, focused on inflammatory bowel disease ("IBD") condition
management, intended to run for up to 21 months, during which time members of
the health plan with IBD receiving care in two US states will be eligible to
participate in the Trellus Elevate™ IBD program.
● Completed initial direct-to-consumer ("D2C") program, with the data gained
from early users validating the use and outcomes of the Company's proprietary
methodology and supporting B2B2C engagement.
● Signed content licensing agreements with two large pharmaceutical companies
post-period end, highlighting the value and applicability of Trellus Health's
proprietary resilience-based methodology.
● Conclusion of pilot programs with a New York-based health insurance company to
make Trellus Elevate™ IBD program available as a health plan benefit to
certain members under its Medicaid managed care plan and a large New York
State labour union that offers health services and benefits to its members
through Mount Sinai. Despite their modest scale, the pilot agreements played a
pivotal role in scaling up, enabling TrellusElevate™ to be showcased to
potential partners and illustrate its delivery within a B2B2C model.
● In February 2023, appointed Dr Daniel Mahony, Senior Independent Non-executive
Director, as Non-executive Chairman, and Joy Bessenger as Chief Financial
Officer in September 2023. Christopher Mills stepped down as Non-executive
Director of the Board post-period end.
Financial highlights
● Net cash of $12.2m at 31 December 2023 (31 December 2022: $19.1m), with
continued emphasis on prudent resource management further extending the
Company's cash runway into mid-2025.
● Adjusted EBITDA* loss of $5.8m, in line with management expectations (31
December 2022: $8.09m loss).
* Earnings before interest, tax, depreciation and amortisation adjusted for
share-based payments
Dr. Marla Dubinsky, Chief Executive Officer of Trellus Health, said:
"The past year represented great progress for Trellus Health. Following the
successful completion of our direct-to-consumer model, which provided us with
data to further validate the Trellus Elevate™ program, our strategy has been
focused on securing and maturing larger B2B2C contracts in our core IBD
offering.
"Our early-stage pilots signed and then extended during the year provided
valuable insights for us. These learnings have enabled us to secure larger
B2B2C agreements with a focus on healthcare cost savings as well as improved
outcomes. Post-period end, we signed a pivotal contract and established an
important partnership with a large US health plan, which is making Trellus
Elevate™ accessible to more people than ever before. We launched the program
in mid-March and are very encouraged by the early adoption trends."
"Our content licensing agreements with two large pharmaceutical companies,
signed post-period end, illustrate the effectiveness of our go-to market
strategy as well as demonstrating a new revenue source.
"Alongside our commercial progress, our team has continued to enhance our
platform, and our disciplined cash management has extended our cash runway
further into mid-2025. Our focus in 2024 is to continue to build commercial
traction at scale. I firmly believe that we now have the foundations in place
to achieve long-term success and help as many people living with IBD as
possible to improve their lives."
Trellus Health will be hosting a live online presentation open to all
investors on Wednesday 24 April at 4.00pm (BST), via the Investor Meet Company
platform. Investors can sign up to Investor Meet Company for free and add to
meet Trellus Health via:
https://www.investormeetcompany.com/trellus-health-plc/register-investor
(https://www.investormeetcompany.com/trellus-health-plc/register-investor)
For further information please contact:
Trellus Health plc https://trellushealth.com/ (https://trellushealth.com/)
Dr. Marla Dubinsky, Chief Executive Officer and Co-Founder Via Walbrook PR
Dr. Daniel Mahony, Chairman
Singer Capital Markets (Nominated Adviser and Broker) Tel: +44 (0)20 7496 3000
Aubrey Powell / Jen Boorer
Walbrook PR Tel: +44 (0)20 7933 8780 or trellus@walbrookpr.com
(mailto:trellus@walbrookpr.com)
Paul McManus / Sam Allen / Phillip Marriage Mob: +44 (0)7980 541 893 / 07748 651 727 / 07867 984 082
About Trellus Health plc (www.trellushealth.com (http://www.trellushealth.com)
)
Trellus Health (AIM: TRLS) is a health services company providing value-based
innovative solutions and services for chronic condition management that
prioritises improved outcomes and member experiences while managing costs of
care.
Trellus Health integrates its proprietary resilience-based methodology with
the technology, tools, and expert coaching and educator team to deliver
Trellus Elevate™, a whole-person technology-enhanced experience that meets
each individual's unique needs and empowers them to master their physical and
emotional health. Trellus Elevate's™ clinically proven solutions result in
relieving disease burden, building self-management skills and promoting
positive health behaviours that improve outcomes and enables thriving in the
face of a chronic condition.
The Company's proven whole person approach recognises the interconnectedness
of various aspects of a person's life and aims to address the whole spectrum
of factors that influence behaviour, to promote comprehensive well-being and
human flourishing in a way that aligns with value-based care. Trellus Health's
approach enables better health outcomes in a member-centric, personalised and
comprehensive holistic solution.
The Company was founded by Mount Sinai faculty members Marla C. Dubinsky, MD
and Laurie Keefer, PhD, both experts at treating and healing both the physical
and emotional impacts of IBD and have been innovators for whole-person
healthcare for a combined 50 years.
The Company is initially focusing on chronic costly GI conditions that have
high mental health burden, such as inflammatory bowel disease ("IBD") which
includes the chronic incurable conditions of Crohn's Disease and ulcerative
colitis. Given the common emotional and mental health struggles often
experienced by individuals suffering from a variety of chronic conditions,
Trellus Health considers its approach to have potential utility and demand
across many conditions.
The Trellus Elevate™ program incorporates the GRITT™ methodology and
learnings on resilience from clinical research and practice conducted at the
Mount Sinai IBD Center for more than seven years. This proprietary,
resilience-driven methodology has been scientifically validated to demonstrate
meaningful improvements in patient outcomes, 71% reduction in Emergency
Department (A&E) visits, and 94% reduction in unplanned hospitalisations,
which the directors of the Company believe indicates the potential for
significant cost savings for healthcare payers and health systems. Patients
with IBD managed with the proprietary resilience methodology also experienced
a 49% reduction in required opioid use and a 73% reduction in corticosteroid
use 12 months following starting the program which is a major indicator of
improved health outcomes(1.)
Shares in Trellus Health were admitted to trading on AIM in May 2021, under
the ticker TRLS. For more information on Trellus Health, visit:
www.trellushealth.com (http://www.trellushealth.com)
(1) Source:
https://www.sciencedirect.com/science/article/pii/S1542356521012258
(https://www.sciencedirect.com/science/article/pii/S1542356521012258)
Forward-Looking Statements
Certain statements made in this announcement are forward-looking statements.
These forward-looking statements are not historical facts but rather are based
on the Company's current expectations, estimates, and projections about its
industry; its beliefs; and assumptions. Words such as 'anticipates',
'expects', 'intends', 'plans', 'believes', 'seeks', 'estimates', and similar
expressions are intended to identify forward-looking statements. These
statements are not guarantees of future performance and are subject to known
and unknown risks, uncertainties, and other factors, some of which are beyond
the Company's control, are difficult to predict, and could cause actual
results to differ materially from those expressed or forecasted in the
forward-looking statements.
The Company cautions security holders and prospective security holders not to
place undue reliance on these forward-looking statements, which reflect the
view of the Company only as of the date of this announcement. The
forward-looking statements made in this announcement relate only to events as
of the date on which the statements are made. The Company will not undertake
any obligation to release publicly any revisions or updates to these
forward-looking statements to reflect events, circumstances, or unanticipated
events occurring after the date of this announcement except as required by law
or by any appropriate regulatory authority.
CHAIR STATEMENT
2023 saw continued progress for Trellus Health, with the key foundations laid
to enable future growth in the business. The Company made significant steps in
commercialising the delivery of its resilience-based methodology, and ensured
that its resources and world-leading expertise can be used at scale to help
people living with inflammatory bowel disease (IBD) and to generate value for
all our stakeholders.
Overview
At the Company's interim results in September 2023, we announced that Trellus
Health had concluded offering its direct-to-consumer ("D2C") model for the
delivery of Trellus Elevate™. This model has allowed the team to utilise
valuable data gained from those early adopters to drive negotiations forward
and deliver larger-scale business-to-business-to-consumer ("B2B2C")
agreements, where the most significant commercial opportunity lies.
During the year, we made progress on the Company's core B2B2C model, which
targets employers, regional and national health plans, and pharmaceutical
companies with the activation of our first early-stage B2B2C pilot contracts.
As previously indicated, these initial, smaller-scale agreements were designed
primarily to demonstrate the improvements in patient outcomes and healthcare
economics in order to capture larger B2B2C pilot and demonstration projects.
Post-period end, the Company signed a key B2B2C agreement with a large US
health plan, where its members with IBD that are receiving care in two US
states will be eligible to receive Trellus Elevate™. The contract
demonstrates the headway made with its commercialisation strategy, and that
the continued emphasis on its core B2B2C model is the best approach to make
Trellus Elevate™ more widely available in order to build value for the
Company and its shareholders.
At the start of 2024, I was also pleased to see the initial delivery of
licensing agreements with two large pharmaceutical companies; one for the use
of proprietary resilience-based assessments in the setting of a clinical trial
and the other for the use of whole-person wellness content. These agreements
illustrate the effectiveness of our go-to market strategy and shows a
diversification of revenue while the partnership with the large US health plan
matures. It also highlights the value of Trellus' proprietary methodology,
developed and championed by our co-founders, and demonstrates how other
companies in the healthcare sector can benefit from understanding the impact
of an individual's resilience on a number of outcomes.
A full summary of our progress and achievements made during the year, as well
as further detail on the Company's strategy, are covered in the Chief
Executive Officer's Review.
Board and Senior Management Team
In February 2023, I was appointed Non-executive Chair, following Julian
Baines' appointment as Executive Chairman of EKF Diagnostics Holdings plc
("EKF").
In September 2023, the Company also announced the appointment of Joy Bessenger
as Chief Financial Officer, following the appointment of Steve Young, Interim
Chief Financial Officer, as full-time CFO of EKF. Joy has proven to be a very
strong addition to the Trellus Health team, and was instrumental in helping to
advance and execute our commercial strategy to secure key partnerships while
keeping disciplined control over the Company's finances, which has extended
our cash runway to mid-2025.
Post-period end, the Company also announced that Christopher Mills had stepped
down from his role on the Board as a Non-executive Director.
I would like to once again place on record my thanks to Julian, Steve and
Christopher for their significant contributions to the Company.
Outlook
I have been pleased to see the progress made by the entire Trellus Health team
during 2023 that has been translated into visible commercial traction in 2024.
Despite the challenging market conditions, the Company has delivered and
evolved its core strategy, not least securing its most significant commercial
contract to date with a large US health plan, while managing its expenditure
and resources to sharpen its focus on the largest commercial opportunities and
to extend its cash runway to mid-2025.
Our current B2B2C agreements - particularly our most recently signed contract
- are critical as we scale the business, both through expanding existing
agreements and by utilising data from our pilot programmes to secure new
partnerships. Trellus Health's resilience-based methodology is increasingly
being recognised by potential partners as a valuable tool, and as we build the
real-world evidence base, I am confident that the Company will be able to
achieve further commercial traction and build value for our stakeholders.
I would like to thank the team for their tireless hard work over the course of
the year, and our shareholders for their continued support.
Dr. Daniel Mahony
Non-executive Chairman
23 April 2024
CEO STATEMENT
In 2023, Trellus Health underwent a significant transformation, marked by the
achievement of numerous key milestones. We advanced substantially with our
business-to-business-to-consumer ("B2B2C") model and successfully implemented
and completed our direct-to-consumer ("D2C") approach. These advancements
culminated in the signing of a pivotal B2B2C agreement with a prominent US
health plan post-period end, establishing a solid initial partnership. This
collaboration will expand the accessibility of Trellus Elevate™ to more
individuals than ever before, providing essential support for managing
inflammatory bowel disease ("IBD"). Our continued disciplined cash control has
also ensured that we remain well-funded to pursue commercial traction into
mid-2025 with our existing resources.
Commercial progress
Successful Implementation and Completion of D2C
We launched our D2C model in July 2022, enrolling early adopters through our
D2C partner channel agreements, including the Crohn's and Colitis Foundation,
and GI OnDemand, with the main objective of validating the use and outcomes of
our proprietary methodology and supporting B2B2C engagement, whilst also
driving awareness and demand.
Following the completion of our initial D2C program we made the strategic
decision to prioritize our B2B2C model, where the Board believes the biggest
growth opportunity exists. We migrated our paying D2C members into a community
testing group, whereby they continue to receive access to Trellus Elevate™
free of charge and provide member feedback to help us further enhance the
platform, enabling us to deliver member-centric improvements faster for our
B2B2C partners.
B2B2C
Our B2B2C model continues to focus on executing agreements with regional and
national health plans, employers, health systems, gastrointestinal ("GI")
provider networks and pharmaceutical manufacturers to make TrellusElevate™
available at no cost to individuals diagnosed with IBD.
We made strong progress during 2023, with our first two pilot B2B2C contracts
with the Mount Sinai Health System becoming active for enrollment in early
2023, and a further contract being signed with a New York-based health insurer
in February 2023 These three pilots have now concluded and have provided
valuable insights into the optimal framework for larger agreements with
prospective B2B2C partners.
Despite their modest scale, these pilot agreements played a pivotal role in
scaling up, enabling us to showcase TrellusElevate™ to potential partners
and illustrate its delivery within a B2B2C model. Collaborative efforts
allowed us to identify strategies for successful implementation of agreements
while maximizing cost efficiencies and enhancing outcomes. Concurrently,
dedicated efforts were directed towards refining the Trellus Elevate™
platform, ensuring its readiness to meet the demands of expanded partnerships
and deliver an unparalleled user experience.
In February 2024, Trellus Health signed an agreement with a large US health
plan, focused on inflammatory bowel disease ("IBD") condition management. The
agreement is intended to run for up to 21 months, during which time members of
the health plan with IBD that are receiving care in two US states will be
eligible for participation in the Trellus Elevate™ IBD program. This
agreement makes Trellus Elevate™ available at a greater scale than it ever
has been before, and will also enable us to continue to demonstrate the
patient benefits and economic savings that can be delivered using our
methodology.
The initial six months of the agreement are the enrolment phase, during which
we will be prioritizing the onboarding of eligible members onto the platform
while collaboratively fostering sustained engagement among the health plan
members enrolled in our program. In March 2024, the health plan sent out its
first of multiple marketing materials to its providers and members,
highlighting Trellus Elevate™ as a complimentary health benefit resource.
Concurrently, we are directing our own digital marketing efforts via
geotargeting toward the two states covered by the agreement, to broaden
awareness of this program which is being made available at no cost to eligible
health plan members. Both our partner and Trellus Health are encouraged by the
early adoption trends. Engagement and other key milestones are reviewed
during our joint weekly steering committee calls.
The active marketing and focus on establishing multiple touchpoints with
eligible members and their health care providers demonstrate a strong
commitment from the health plan. Our partner has recognized the benefits that
Trellus Elevate™ can have for individuals with IBD, with a focus on improved
health outcomes and reduced total costs of care. I am confident that we will
be able to demonstrate a clear and substantial return for our partner,
potentially within twelve to eighteen months. Ideally, strong early data will
lead to the expansion of our agreement make Trellus Elevate™ more widely
available, and further validate the value to prospective partners.
Licensing agreements
Post-period end, we signed our first two licensing agreements with
pharmaceutical industry partners for elements of our resilience-based
methodology. One agreement is for the use of proprietary resilience-based
assessments in the setting of a clinical trial and the other is for the use of
whole-person wellness content. Both agreements show the increasing value that
B2B2C partners are placing on our scientifically validated methodology to
assess resilience, which can be applied to many areas beyond chronic condition
management, such as how resilience affects the subjective and objective way
people respond to different therapies.
These revenue-generating agreements, whilst modestly sized at this stage, are
an encouraging sign of both the growing understanding of resilience in the
healthcare world, as well as a potential additional and diversified revenue
stream at little to no additional resource cost to the Company.
Enhancing the user and partner experience
During 2023, we have made investments to enhance the Trellus Elevate™
engagement platform on both our member and provider-facing apps.
Our team, under the leadership of our CTO Jamey Hancock, has optimized the
member registration portal, allowing for seamless and efficient onboarding and
registration of eligible members, providing each B2B2C partner with a
customized portal. Additionally, significant improvements have been made to
the Trellus Elevate™ self-curriculum, including new and updated courses,
skills and lessons, all aimed at driving resilience and facilitating
behavioral change. Moreover, substantial progress has been made in gamifying
the platform, enhancing user engagement, and encouraging continued interaction
with Trellus Elevate™. Leveraging our proprietary algorithms, we have
increased automation in various areas such as symptom, biomarker and
medication tracking, further enhancing the platform's effectiveness. We have
also updated our provider app, whereby members can share their progress with
their own IBD provider in real time and the Trellus Team can communicate
directly with the provider in real time to optimize member outcomes.
Post-period end, we secured SOC 2 Type 2 designation for Trellus Elevate™,
which is considered the gold standard accreditation for a service organisation
in relation to its security, processing integrity and privacy controls and
practices.
In 2024, we are set to enhance our technological capabilities as planned,
enabling us to scale more efficiently through structuring and tailoring our
solution for specific populations. Given our previous level of technology
investment, this can be done effectively at modest spend. This strategic
approach will broaden our appeal to a wider range of potential B2B2C clients.
Financial position and current trading
As of 31 December 2023, Trellus Health's net cash position was $12.2m (31
December 2022: $19.1m). Through our disciplined cash management and
prioritization of resources, we have been able to extend our expected cash
runway until mid-2025, even on more conservative growth and revenue
assumptions than we hope to achieve.
Our adjusted EBITDA loss for the year was $5.8m (FY 2022: $8.1m), in-line with
management expectations.
Our efficient management of resource has been pleasing to see, and I am
confident that we are in a good position to deliver further commercial
progress and revenue growth using the runway that we have, in both our core
offering as well as through other avenues such as licensing agreements for
existing proprietary content. Due to our capital investment over the last
several periods, we have built a highly scalable large enterprise platform and
technology which was ready at time of launch with the large health plan. We
anticipate further reducing our expenditure this year, partly due to these
prior investments in establishing a go-to-market strategy and platform
tailored for major partners.
Strongly positioned for future growth
We have made significant strides throughout the past year, and this momentum
has continued in 2024. Witnessing the launch of our initial B2B2C contracts
and the successful execution of our D2C model has been particularly
gratifying. The insights gleaned from our D2C program, and our earlier small
scale B2B2C programs, played a pivotal role in securing our recent partnership
with a prominent US health plan, a collaboration that the team and I can be
immensely proud of. The commitment displayed by our health plan partner in
ensuring the success of our venture and the positive impact on their eligible
members has been very encouraging.
Our effort to enhance the platform underscores our commitment to provide both
users and partners with an unparalleled experience aimed at improving outcomes
and fostering behavioral change, ultimately leading to better outcomes and
reduced healthcare costs.
The strategic prioritization of our B2B2C core offering in IBD, coupled with
the extension of our cash runway into mid-2025, mark significant milestones
for us. By channelling our resources toward achieving meaningful commercial
traction in our B2B2C offering, I firmly believe we have laid the groundwork
for long-term success. We look forward to updating you on our progress as
projects are implemented and others added.
Dr. Marla Dubinsky
Chief Executive Officer and Co-Founder
23 April 2024
Consolidated Income Statement and Other Comprehensive Income
for the year ended 31 December 2023
2023 2022
Notes $'000 $'000
Revenue 19 18
Cost of Sales - -
Gross Profit 19 18
Administrative Expenses (6,822) (8,828)
Operating Loss (6,803) (8,810)
Depreciation, amortization and impairment 957 659
Share-based payments 8 24 62
EBITDA before exceptional items and share-based payments (5,822) (8,089)
Finance Income 464 -
Loss before Income Tax (6,339) (8,810)
Income Tax Charge 3 - -
Loss for the Year (6,339) (8,810)
Loss per share 4
Basic and Diluted (US $ cents) (0.04) (0.05)
The results reflected above relate to continuing operations. The comparative
period reflects the year ended 31 December 2022.
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2023
2023 2022
$'000 $'000
Loss for the year (6,339) (8,810)
Items that may be subsequently reclassified to profit and loss
Currency translation differences 724 (1,434)
Total comprehensive loss for the year (5,615) (10,244)
Consolidated Statement of Financial Position
as at 31 December 2023
2023 2022
Notes $'000 $'000
Assets
Non-Current Assets
Property, plant, and equipment 5 35 58
Intangible Assets 6 7,923 6,488
Total Non-Current Assets 7,958 6,546
Current Assets
Trade receivables and prepaid expenses 163 283
Cash and cash equivalents 12,166 19,085
Total Current Assets 12,329 19,368
Total Assets 20,287 25,914
Share Capital and Equity
Share Capital 7 137 137
Share Premium 43,387 43,387
Share-based Payment Reserve 8 225 201
Foreign Currency Reserves (2,435) (3,159)
Retained Earnings (21,813) (15,474)
Total Equity 19,501 25,092
Liabilities
Current Liabilities
Trade and other payables 786 822
Total Liabilities 786 822
Total Equity and Liabilities 20,287 25,914
Consolidated Statement of Cash Flows
for the year ended 31 December 2023
2023 2022
Notes $'000 $'000
Cash Flow from Operating Activities
Loss for the period (6,803) (8,810)
Adjustments for:
Depreciation and amortisation 5,6 716 536
Impairment of Intangibles 6 241 123
Share-based payment expense 8 24 62
(5,822) (8,089)
Decrease/(Increase) in trade and other receivables 120 168
(Decrease)/Increase in trade and other payables (36) (699)
Interest received 464 -
Net cash outflow from operating activities (5,274) (8,620)
Cash Flow from Investing Activities
Purchases of plant, property and equipment 5 - -
Purchases of intangible assets 6 (2,351) (2,908)
Net cash outflow from investing activities (2,351) (2,908)
Cash Flow from Financing Activities
Net proceeds from issue of ordinary shares 7 - -
Net cash Inflow from financing activities - -
Net (Decrease)/Increase in Cash and Cash Equivalents (7,625) (11,528)
Cash and Cash Equivalents at the Beginning of the Year 19,085 31,982
Exchange gain/(loss) on Cash and Cash Equivalents 706 (1,369)
Cash and Cash Equivalents at the End of the Year 12,166 19,085
Consolidated Statement of Changes in Equity
for the year ended December 31, 2023
Share Capital Share Premium Foreign Currency Reserve Other reserves Retained earnings
Total
Consolidated US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
At 1 January 2022 137 43,387 (1,725) 139 (6,664) 35,274
Comprehensive income
Loss for the year - - - (8,810) (8,810)
Currency translation differences - - (1,434) - - (1,434)
Total comprehensive loss for the year - - (1,434) - (8,180) (10,244)
Share based payment reserve - - - 62 - 62
Balance At 31 December and 1 January 2023 137 43,387 (3,159) 201 (15,474) 25,092
Comprehensive income
Loss for the year - - - - (6,339) (6,399)
Currency translation differences - - 724 - - 724
Total comprehensive loss for the year - - 724 - (6,339) (5,615)
Share based payment reserve - - - 24 - 24
At 31 December 2023 137 43,387 (2,435) 225 (21,813) 19,501
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2023
1. General information and basis of presentation
Trellus Health plc is a public limited company incorporated in the United
Kingdom (Registration Number 12743489), whose shares are admitted to trading
on the AIM market of the London Stock Exchange. The address of the registered
office is Avon House, 19 Stanwell Road, Penarth, CF64 2EZ.
The principal activity of the Company is the delivery of resilience-driven
care for complex chronic conditions.
These preliminary financial statements of the Group have been prepared in
accordance with UK-adopted International Accounting Standards and with the
requirements of the Companies Act 2006. The financial information included in
this preliminary announcement does not include all the disclosures required in
accounts prepared in accordance with UK adopted International Accounting
Standards (IFRS) and accordingly it does not itself comply with UK adopted
International Accounting Standards.
The audit of the statutory accounts for the year ended 31 December 2023 is not
yet complete. These accounts will be finalised on the basis of the financial
information presented by the directors in this preliminary announcement.
Statutory accounts for the year to 31 December 2022 have been delivered to the
Registrar of Companies.
Certain statements in this announcement constitute forward-looking statements.
Any statement in this announcement that is not a statement of historical fact
including, without limitation, those regarding the Company's future
expectations, operations, financial performance, financial condition and
business is a forward-looking statement. Such forward-looking statements are
subject to risks and uncertainties that may cause actual results to differ
materially. These risks and uncertainties include, amongst other factors,
changing economic, financial, business or other market conditions. These and
other factors could adversely affect the outcome and financial effects of the
plans and events described in this announcement and the Company undertakes no
obligation to update its view of such risks and uncertainties or to update the
forward-looking statements contained herein. Nothing in this announcement
should be construed as a profit forecast.
2. Material accounting policies
Going concern
The Group is in the development phase of its business and has only generated
revenues related to implementation services and early patients in pilot
scheme. At 31 December 2023 the Group has available cash resources of
$12.2m.
The Board has considered the impact of the ongoing Russia/Ukraine war and
rising inflation. There has been minimal impact on the Company to date and the
Board anticipates minimal on-going impact, due to the nature of the business.
The Directors have prepared cash flow forecasts for the Group for a review
period of over 12 months from the date of approval of this financial
statement. These forecasts reflect an assessment of current and future market
conditions and their impact on the Group's future cash flow performance.
The forecasts have been sensitised for additional costs which may be incurred
in the review period. In the sensitised scenario, the forecasts indicate the
Group would still have sufficient cash to continue as a going concern.
Having considered the points above, the Directors remain confident in the
long-term future prospects for the Group, and their ability to continue as a
going concern for the foreseeable future. They therefore adopt the going
concern basis in preparing the historical financial information of the Group
and the Company.
While the financial information included in this preliminary announcement has
been prepared in accordance with the recognition and measurement criteria of
IFRS, this announcement does not itself contain sufficient information to
comply with IFRSs. The Company will publish its full annual report containing
audited financial statements for the year ended 31 December 2023 before the
end of May 2024, together with a notice to shareholders of the Company's
Annual General Meeting ("AGM") which will be available on the Company's
website at www.trellushealth.com (http://www.trellushealth.com) and at the
Company's registered office at Avon House, 19 Stanwell Road Penarth CF64 2EZ.
The AGM will be held in June 2024, with further information to be notified at
the time of the availability of the full annual report.
3. Tax expenses
2023 2022
$'000 $'000
Current tax expense
Current tax on loss for the year - -
Total Current Tax - -
Deferred Tax Asset
On losses generated in the year - -
Total Deferred Tax - -
The reasons for the difference between the actual tax charge for the year and
the standard rate of corporation tax in the United Kingdom applied to profits
for the year are as follows:
2023 2022
$'000 $'000
Loss for the period (6,339) (8,810)
Tax using the Company's domestic tax rate of 19% (1,204) (1,674)
Expenses not deductible for tax purposes 90 31
Depreciation, amortisation and impairment that are not deductible for tax 174 117
purposes
Unrecognised deferred tax assets 1,940 1,526
Total tax expense - -
The unrecognised deferred tax relates to two elements: the unrecognised
deferred tax arising on share-based payments of US $225,000 and unrecognised
deferred tax on taxable losses of US $4.8m million (2022: US $4m), based on
total taxable losses carried forward of US $25m (2022 - US $19m). No deferred
tax asset is recognised for these losses due to early stage in the development
of the Group's activities. The losses do not expire but can only be used
against trading profits from the same trade.
4. Loss per share
2023 2022
Numerator $'000 $'000
Loss for the period (6,339) (8,810)
Denominator Number Number
Weighted average # of shares 161,508,333 161,508,333
Resulting Loss per Share ($) (0.04) (0.05)
The Company has one category of potential ordinary share, being share options
(see Note 8). The potential shares were not dilutive in the period as the
Group made a loss per share in line with IAS 33.
5. Property, Plant and equipment
All assets are equipment
Group
US $'000
Cost
At 1 January 2022 and 31 December 2022 93
Depreciation
At 1 January 2022 (11)
Charge for the year (24)
At 31 December 2022 (35)
Net Book value at 31 December 2022 58
Cost
At 1 January 2023 and 31 December 2023 93
Depreciation
At 1 January 2023 (35)
Charge for the year (23)
At 31 December 2023 (58)
Net Book value at 31 December 2023 35
6. Intangible assets
Software Development Licence Total
US $'000 US $'000 US $'000
Cost
At 1 January 2022 3,802 500 4,302
Additions 2,908 - 2,908
Foreign currency difference - (65) (65)
At 31 December 2022 6,710 435 7,145
Depreciation
At 1 January 2022 (22) - (22)
Chage for the year (471) (42) (513)
Impairment charge (122) - (122)
At 31 December 2022 (615) (42) (657)
Net Book Value at 31 December 2022 6,095 393 6,488
Cost
At 1 January 2023 6,710 435 7,145
Additions 2,351 - 2,351
Foreign currency difference - 18 18
At 31 December 2023 9,061 453 9,514
Depreciation
At 31 January 2023 (615) (42) (657)
Charge for the year (651) (42) (693)
Impairment charge (241) - (241)
At 31 December 2023 (1,507) (84) (1,591)
Net Book Value at 31 December 2023 7,554 369 7,923
The licence was acquired from Icahn School of Medicine at Mount Sinai on 19
August 2021 for rights to intellectual property and data to support the GRITT
technology.
Capitalised development costs in relation to the Group's software platform has
been reviewed for indicators of impairment. An impairment charge of $241,000
(2022 - $122,000) was recognised in the period in relation to specific aspects
of capitalised expenditure considered to have no value in use.
7. Share capital
2023 2023 2022
Number $'000 $'000
Ordinary Shares of £0.0006 each 161,508,333 137 137
8. Share-based payment
On 1 January 2021, the Board adopted the Share Option Plan to incentivise
certain of the Group's employees and Directors. The Share Option Plan provides
for the grant of both EMI Options and non-tax favoured options. Options
granted under the Share Option Plan are subject to exercise conditions as
summarised below.
The Share Option Plan has a non-employee sub-plan for the grant of Options to
the Company's advisors, consultants, non-executive directors, and entities
providing, through an individual, such advisory, consultancy, or office holder
services and a US sub-plan for the grant of Options to eligible participants
in the Share Option Plan and the Non-Employee Sub-Plan who are US residents
and US taxpayers.
The options vest equally over twelve quarters from the grant date or 25% after
twelve months and over eight quarters equally thereafter. If options remain
unexercised after the date one day before the tenth anniversary of grant such
options expire. The options are subject to exercise conditions such that they
shall, subject to certain exceptions, vest in instalments over the three years
immediately following the date of grant, which vesting shall accelerate in
full in the event of a change of control of the Company.
2023 2022
Weighted Weighted
Average Average
Exercise 2023 Exercise 2022
price ($) Number price ($) Number
Outstanding at 1 January 0.39 3,255,0000 0.35 3,580,000
Granted during the period - - 0.48 1,640,000
Exercised during the period - - - -
Forfeited during the period 0.30 (425,000) 0.44 (1,965,000)
Outstanding at 31 December 0.38 2,830,000 0.39 3,255,000
Exercisable at 31 December 0.35 2,427,917 0.25 1,973,125
The exercise price of options outstanding at 31 December 2023 ranged
between 20 US cents and 77 cents and their weighted average contractual life
was 2.3 years.
The weighted average fair value of each option granted during the year was
$Nil (2022: $0.05).
The fair value of each share option granted in 2022 has been estimated using a
Black-Scholes model and ranges from 1 US cent to 10 US cent. The inputs into
the model are a share prices of 17 US cent, 23 US cent, 26 US cent and 43 US
cent, exercise prices of 48 US cent, expected volatility of 50%, no expected
dividend yield, contractual life of between 2.9 and 1.9 years and a risk-free
interest rate of 1.25% and 2.25%.
9. Related Party Transactions
The Group received £nil (2022 - $10k) reimbursement from Mount Sinai Hospital
during 2023 for member set up in connection with the related party contracts
announced in October 2022. There has been no revenue received in 2023 and 2022
in connection with these two related party contracts, with or via Mount Sinai
Hospital. The amount owed as at 31 December 2023 is $0 (2022: $0). The Group
also paid £Nil (2022 - $100k) management fee to Mount Sinai Hospital during
2023, the amount outstanding at 31 December 2023 is $0 (2022:
$0).
10. Events after the reporting date
There have been no events subsequent to the period end that require disclosure
in these financial statements.
11. Dividends
There were no dividends paid or proposed by the Company in either year.
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