The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via the Regulatory Information Service, this inside information is considered to be in the public domain.
Intelligent Ultrasound Group plc
(the "Group" or the "Company" or "Intelligent Ultrasound")
Half Year Report
Intelligent Ultrasound Group plc (AIM: IUG), the 'classroom to clinic' ultrasound company, specialising in artificial intelligence (AI) software and simulation, announces its unaudited half year results to 30 June 2022.
Financial highlights
· Growth in revenue of 62% to £5.9m (H1 2021: £3.6m)
o Simulation revenue increased by 56% to £5.6m (H1 2021: £3.6m)
o Clinical AI revenue, which is in the early stage of commercialisation, increased by 486% to £0.3m (H1 2021: £0.1m)
· Operating loss for the period narrowed to £1.3m (H1 2021: loss of £2.3m)
· Cash and cash equivalents at 30 June 2022 of £3.5m (31 December 2021: £5.0m)
Operational highlights
· Direct sales, which together cover the UK and USA, grew by over 80% to £5.3m (H1 2021: £2.8m), helped by a high number of one-off orders from a UK NHS training initiative in the first quarter. The zero-covid policy in China negatively impacted Rest of World sales
· Announced an extension to the GE Healthcare agreement to enable GE Healthcare to utilise the ScanNav Assist AI software in a new women's health segment of automated ultrasound image analysis, that is outside the Group's original agreement
· Secured the status of a Carbon Neutral Company - a significant milestone as part of the Company's wider Environmental, Social, and Governance (ESG) goals
Post-period end
· The ScanNav real-time AI technology was incorporated by GE Healthcare into the new Voluson Expert 22 ultrasound machine, the second machine in the Voluson portfolio to incorporate Intelligent Ultrasound's AI software as an optional add-on
Stuart Gall, CEO of Intelligent Ultrasound commented: "This has been an excellent start to the year. Although Covid-19 has restricted sales in China, our simulation revenues grew by over 50% thanks to an outstanding performance from the UK and sales of the new clinical AI related products are starting to grow. The recent announcement that our ScanNav Assist software has now been incorporated on GE Healthcare's new Voluson Expert 22 ultrasound machine is particularly encouraging. We reduced our operating loss for the period to £1.3m and we remain confident that we can meet the market expectations of £10m revenue for FY2022. We continue to monitor closely our cash, investment in R&D and overheads against the anticipated sales growth curve in 2023, as we build a successful 'Classroom to Clinic' ultrasound business in this exciting sector of the market."
Enquiries:
| Intelligent Ultrasound Group plc | ||||
| Stuart Gall, CEO | Tel: +44 (0)29 2075 6534 | |||
| Helen Jones, CFO | | |||
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| Cenkos Securities | Tel: +44 (0)20 7397 8900 | |||
| Giles Balleny / Max Gould (Corporate Finance) |
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| Dale Bellis / Julian Morse (Sales) |
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| Walbrook PR | Tel: +44 (0)20 7933 8780 or intelligentultrasound@walbrookpr.com | |||
| Anna Dunphy | Mob: +44 (0)7876 741 001 | |||
About Intelligent Ultrasound Group
Intelligent Ultrasound (AIM: IUG) is one of the world's leading 'classroom to clinic' ultrasound companies, specialising in real-time hi-fidelity virtual reality simulation for the ultrasound training market ('classroom') and artificial intelligence-based clinical image analysis software tools for the diagnostic medical ultrasound market ('clinic'). Based in Cardiff in the UK and Atlanta in the US, the Group has two revenue streams:
Simulation
Real-time hi-fidelity ultrasound education and training through simulation. Our main products are the ScanTrainer obstetrics and gynaecology training simulator, the HeartWorks echocardiography training simulator, the BodyWorks Eve Point of Care and Emergency Medicine training simulator with Covid-19 module and the new BabyWorks Neonate and Paediatric training simulator. To date over 1,400 simulators have been sold to c. 700 medical institutions around the world.
Clinical AI software
Deep learning-based algorithms to make ultrasound machines smarter and more accessible using our proprietary ScanNav ultrasound image analysis technology. Current products on the market utilising this technology are GE Healthcare's SonoLyst software that is incorporated in their Voluson Expert 22 and SWIFT ultrasound machines; ScanNav Anatomy PNB that simplifies ultrasound-guided needling by providing the user with real-time AI-based anatomy highlighting for a range of medical procedures; and NeedleTrainer that teaches real-time ultrasound-guided needling and incorporates ScanNav Anatomy PNB.
NOTE: ScanNav Anatomy PNB is CE approved, but not yet available for sale in the US or any other territory requiring government approval for this type of product.
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2022
This has been an excellent trading period for the Group. A very strong simulation revenue performance in the UK was combined with encouraging growth in clinical AI software sales that puts us in a strong position to meet our FY 2022 target of £10m and continue the growth of the business into 2023.
Importantly, post-period end in July, our ScanNav Assist real-time AI technology was incorporated by GE Healthcare into the new Voluson Expert 22 ultrasound machine, the second machine in the Voluson portfolio to incorporate Intelligent Ultrasound's AI software as an option add-on.
We continue to believe that our 'classroom to clinic' ultrasound vision will enable us to build a successful business in this exciting sector of the market.
Simulation
Revenue
Our simulation revenue grew by 56% to £5.6m (H1 2021: £3.6m), our best start to the year since we listed the Company in 2014.
Our record sales were driven by an exceptional performance from the UK's direct sales team, who increased revenue by over 160% to £4.0m (H1 2021: £1.6m). The UK revenues were helped by a high number of one-off orders from a UK NHS training initiative in the first quarter. Although all our simulator sales are considered one-offs, we judged c.£1.4m of these UK sales to be exceptional.
Sales from the Group's direct sales team in USA showed a small decline of 13% to £1.1m (H1 2021: £1.3m), but the region is expected to grow sales in the second half of the year and with long-term growth expected from the US markets, we invested in increasing the size of the sales team during the period.
Sales from the Group's reseller network were impacted by the closing of the Chinese market due to Covid-19 and to a lesser extent by the impact of the war in Ukraine that has resulted in our sales into Russia being put on hold. As a result, Rest of the World revenue declined by 38% to £0.5m (H1 2021: £0.8m). With sales in China and Russia not expected to recover in the second half of the year, we anticipate our simulation reseller sales will improve in 2023.
Research and Development
In January 2022 at the International Meeting on Simulation in Healthcare (IMSH) in Los Angeles, we officially launched the new BabyWorks neonate and paediatric training simulator and the new 3D Echo add-on module for HeartWorks. Both products are expected to contribute to simulator revenues in H2 2022 and grow sales in 2023. During the year we also launched the new START 2.0 remote e-learning modules for the BodyWorks and HeartWorks platforms.
Clinical AI software
Revenue
Our clinical AI revenue, which is in the early stage of commercialisation, grew five-fold to £0.3m (H1 2021: £0.1m) as we continued to focus on moving AI into the clinic to give real-time support to clinicians whilst they are scanning.
We now have three products launched in the market:
· ScanNav Assist that is incorporated in two of GE Healthcare's Voluson ultrasound machines - the newly launched Expert 22 and the SWIFT
· ScanNav Anatomy Peripheral Nerve Block ("PNB"), our own CE approved, direct-to-market device, that simplifies ultrasound-guided needling by providing the user with real-time AI-based anatomy highlighting for a range of medical procedures
· NeedleTrainer, our own direct-to-market device, that teaches real-time ultrasound-guided needling and incorporates ScanNav Anatomy PNB
Good progress has been made in the early commercialisation of these AI related products and with ScanNav Anatomy PNB anticipated to receive FDA clearance in the second half of 2022, and a handheld compatible version of NeedleTrainer expected to launch in September 2022, AI revenue is expected to continue to grow in H2 and in 2023. To this end, we now have two dedicated salespeople selling NeedleTrainer and ScanNav Anatomy PNB in the UK and USA and will look to increase this resource as sales traction grows during 2023.
We continue to build an excellent partnership with GE Healthcare and in January 2022 announced an extension to our existing exclusive women's healthcare AI agreement with GE Healthcare to enable GE Healthcare to utilise the ScanNav Assist AI software in a new segment of automated ultrasound image analysis, that is outside the Group's original agreement. Although the terms of the agreement and the timings of the related product launch are undisclosed, this supplementary product line is expected to support the growth of the Group's royalty revenues in the longer term.
Research and Development
In the first half of 2022 we continued to focus on developing our partnership with GE Healthcare and commercialising ScanNav Assist, ScanNav Anatomy PNB and NeedleTrainer. As such, our development work on the ScanNav Detect abnormality detection software and the future ScanNav HealthCheck software for at-home scanning remain in the very early stages of development:
Operations
We continue to operate out of our head office in the centre of Cardiff and warehouse in Caerphilly and have successfully moved to a flexible work environment, whereby employees combine office and at-home working that is appropriate to the Company and employee.
Board changes
In June 2022, Professor Nazar Amso and David Baynes, who have been Directors within the Group respectively for 17 and 12 years, retired from the Board. We would like to take this opportunity to thank Nazar, the founder of the original Company, and David, the representative of the original major investor, for their significant contributions to the Company over the past years.
Post period end in August, we appointed Dr Christian Guttmann to the Board. Christian is a recognised leader in shaping the global agenda on AI regulation, standards, and guidelines, as well as having outstanding AI research, development and AI commercialisation experience. He has built over 100 novel AI systems and products and was the founder of the Global AI Institute which advises government ministers, thinktanks and businesses around the world.
Concurrent with his appointment, Andrew Barker, who has been a Non-executive Director since 2017, has announced his intention to retire from the Board effective 31 December 2022.
Christian will join the Audit and Risk Committee, effective with his appointment. Andrew will continue as Chair of the Remuneration Committee until 31 December, after which Michele Lesieur will take over as Chair of the committee.
Environmental, Social, and Governance (ESG)
In May we published our first ESG dashboard and report in the annual report and accounts and announced that we had secured the status of a Carbon Neutral Company - a significant ESG milestone in our wider ESG goals. The full report can be viewed at https://www.intelligentultrasound.com/esg/
Financial Review
· Revenue of £5.9m (H1 2021: £3.6m)
· Operating loss for the period of £1.3m (H1 2021: loss of £2.3m)
· Cash and cash equivalents at 30 June 2022 of £3.5m (31 December 2021: £5.0m)
· Net cash used in operating activities of £0.7m (H1 2021: £2.2m)
Driven by the exceptional simulation performance in the UK, H1 2022 revenues reached a record £5.9m, an increase of 62% compared to the first half of 2021 (H1 2021: £3.6m). Gross profit for the period increased by over 60% to £3.8m (H1 2021: £2.3m), an increase of £1.5m due to a mix of higher sales volumes and an improvement in average gross margin arising from the higher proportion of UK direct sales in the period. Clinical AI revenues from the expanded AI product range grew to £0.3m in H1 2022 (H1 2021: £0.1m).
Total research and development (R&D) expenditure on product development and regulatory costs in H1 2022 was £1.7m (H1 2021: £1.6m) of which £0.6m (H1 2021: £0.5m) has been capitalised in the period. Clinical AI development costs in H1 2022 include the additional Human Factors study performed in the US as part of the FDA regulatory filing process for ScanNav Anatomy PNB, the new handheld version of NeedleTrainer and the additional variants of the ScanNav Assist software. In addition, development of new cardiac pathology modules for BabyWorks started in H1 as well as ongoing development of HeartWorks and ScanTrainer.
The operating loss in H1 2022 fell by 43% to £1.3m (H1 2021: £2.3m) due to higher gross profit of £1.5m, offset by higher administrative expenses of £0.5m. Administrative expenses increased partly due to higher sales related costs such as sales commissions and distribution costs as well as headcount increases in the US sales function offset by higher capitalised R&D costs.
The Group had cash and cash equivalents of £3.5m at 30 June 2022 (31 December 2021: £5.0m), a movement of £1.5m in the period (H1 2021: £2.9m). Operating cash outflows before working capital movements were £0.9m lower in H1 2022 compared to H1 2021. After movements in working capital of £0.4m (H1 2022: £0.9m) and the remainder of the 2020 R&D tax credits received in the period of £0.2m (H1 2021: £nil), the net cash used in operating activities reduced to £0.7m (H1 2021: £2.2m).
In the period, cash outflows from investing activities totalled £0.7m, of which £0.6m related to capitalised R&D costs and £0.1m of property, plant and equipment. The net cash outflow from financing activities was £0.1m (H1 2021: £0.1m), principally relating to lease payments.
Outlook
This has been an excellent start to the year.
Although Covid-19 has restricted sales in China, our simulation revenues grew by over 50% thanks to an outstanding performance from the UK and growing sales of the new clinical AI related products. The recent announcement that our ScanNav Assist software has now been incorporated in GE Healthcare's new Voluson Expert 22 ultrasound machine is particularly encouraging.
We remain confident that we can meet the market expectations of £10m revenue for FY2022, and we continue to monitor closely our cash, investment in R&D and overheads against the anticipated sales growth curve in 2023, as we build a successful 'Classroom to Clinic' ultrasound business in this exciting sector of the market.
Stuart Gall
CEO
18 August 2022
CONSOLIDATED STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME
|
| Note | Unaudited 6 months ended 30 June 2022 | Unaudited 6 months ended 30 June 2021 | Audited year ended 31 December 2021 |
| | | £'000 | £'000 | £'000 |
| | | | | |
| REVENUE | 4 | 5,900 | 3,639 | 7,596 |
| Cost of sales | | (2,133) | (1,365) | (2,937) |
| GROSS PROFIT | 3,767 | 2,274 | 4,659 | |
| Other income | 6 | - | 2 | |
| Administrative expenses | (5,121) | (4,610) | (8,993) | |
| OPERATING LOSS |
| (1,348) | (2,336) | (4,332) |
| Finance income | | - | 1 | 1 |
| Finance costs | | (19) | (17) | (37) |
| LOSS BEFORE INCOME TAX |
| (1,367) | (2,352) | (4,368) |
| Taxation | 5 | 333 | 333 | 758 |
| LOSS ATTRIBUTABLE TO THE EQUITY SHAREHOLDERS OF THE PARENT |
| (1,034) | (2,019) | (3,610) |
| | | | | |
| OTHER COMPREHENSIVE (EXPENSE)/INCOME | | | | |
| Items that will or may be reclassified to profit or loss: | | | | |
| Exchange gain/(loss) arising on translation of foreign operations | | 175 | (15) | 33 |
| OTHER COMPREHENSIVE INCOME/(EXPENSE) FOR THE PERIOD | | 175 | (15) | 33 |
| TOTAL COMPREHENSIVE EXPENSE ATTRIBUTABLE TO THE EQUITY SHAREHOLDERS OF THE PARENT |
| (859) | (2,034)
| (3,577) |
| | | | | |
| LOSS PER ORDINARY SHARE (PENCE) ATTRIBUTABLE TO THE EQUITY SHAREHOLDERS OF THE PARENT Basic and diluted | 6 |
(0.38) |
(0.75) |
(1.34) |
| | | | | |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| | Note | Unaudited 30 June 2022 | Unaudited 30 June 2021 | Audited 31 December 2021 |
| | | £'000 | £'000 | £'000 |
| NON-CURRENT ASSETS | | | | |
| Intangible assets | 7 | 2,776 | 1,958 | 2,558 |
| Property, plant and equipment |
| 1,277 | 1,263 | 1,400 |
| Trade and other receivables | | 61 | 61 | 61 |
| | 4,114 | 3,282 | 4,019 | |
| CURRENT ASSETS | | | | |
| Inventories |
| 1,359 | 1,283 | 1,196 |
| Trade and other receivables |
| 2,193 | 2,716 | 2,650 |
| Current tax asset | | 1,107 | 1,008 | 954 |
| Cash and cash equivalents | | 3,544 | 5,849 | 4,950 |
| | 8,203 | 10,856 | 9,750 | |
| TOTAL ASSETS | 12,317 | 14,138 | 13,769 | |
| | | | | |
| CURRENT LIABILITIES | | | | |
| Trade and other payables | 8 | (1,966) | (1,895) | (2,767) |
| Deferred income | | (284) | (167) | (206) |
| Lease liabilities | | (117) | (206) | (213) |
| Provisions |
| (22) | (22) | (22) |
| | (2,389) | (2,290) | (3,208) | |
| NON-CURRENT LIABILITIES | | | | |
| Deferred income | (349) | (311) | (320) | |
| Lease liabilities | (447) | (564) | (457) | |
| Other payables | (65) | (65) | (65) | |
| | (861) | (940) | (842) | |
| TOTAL LIABILITIES | (3,250) | (3,230) | (4,050) | |
| NET ASSETS | 9,067 | 10,908 | 9,719 | |
| EQUITY | | | | |
| Share capital | 9 | 2,707 | 2,694 | 2,707 |
| Share premium | | 25,959 | 25,959 | 25,969 |
| Share warrants | | - | 126 | - |
| Accumulated losses | | (28,001) | (25,400) | (26,967) |
| Share-based payment reserve | | 1,580 | 1,095 | 1,373 |
| Merger reserve | | 6,538 | 6,538 | 6,538 |
| Foreign exchange reserve | | 119 | (104) | (56) |
| Other reserves | | 165 | - | 165 |
| TOTAL EQUITY |
| 9,067 | 10,908 | 9,719 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
| |
Share capital |
Share premium |
Share warrants |
Accumulated losses | Share-based payment reserve |
Merger reserve |
Foreign exchange reserve |
Other reserves |
Total equity |
| | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 |
| AT 1 JANUARY 2021 | 2,694 | 25,959 | 126 | (23,381) | 842 | 6,538 | (89) | - | 12,689 |
|
| | | | | | | | | |
| COMPREHENSIVE EXPENSE FOR THE PERIOD | | | | | | | | | |
| Loss for the period | - | - | - | (2,019) | - | - | - | - | (2,019) |
| Other comprehensive expense | - | - | - | - | - | - | (15) | - | (15) |
| TRANSACTIONS WITH OWNERS, RECORDED DIRECTLY IN EQUITY | | | | | | | | | |
| Share-based payments | - | - | - | - | 253 | - | - | - | 253 |
| AT 30 JUNE 2021 | 2,694 | 25,959 | 126 | (25,400) | 1,095 | 6,538 | (104) | - | 10,908 |
|
| | | | | | | | | |
| COMPREHENSIVE INCOME/(EXPENSE) FOR THE PERIOD | | | | | | | | | |
| Loss for the period | - | - | - | (1,591) | - | - | - | - | (1,591) |
| Other comprehensive income | - | - | - | - | - | - | 48 | - | 48 |
| TRANSACTIONS WITH OWNERS, RECORDED DIRECTLY IN EQUITY | | | | | | | | | |
| Issue of share capital | 13 | - | - | - | - | - | - | - | 13 |
| Exercise of share warrants | - | - | (126) | 24 | - | - | - | 165 | 63 |
| Share-based payments | - | - | - | - | 278 | - | - | - | 278 |
| AT 31 DECEMBER 2021 | 2,707 | 25,959 | - | (26,967) | 1,373 | 6,538 | (56) | 165 | 9,719 |
| | | | | | | | | | |
| COMPREHENSIVE INCOME/(EXPENSE) FOR THE PERIOD | | | | | | | | | |
| Loss for the period | - | - | - | (1,034) | - | - | - | - | (1,034) |
| Other comprehensive income | - | - | - | - | - | - | 175 | - | 175 |
| TRANSACTIONS WITH OWNERS, RECORDED DIRECTLY IN EQUITY | | | | | | | | | |
| Share-based payments | - | - | - | - | 207 | - | - | - | 207 |
| AT 30 JUNE 2022 | 2,707 | 25,959 | - | (28,001) | 1,580 | 6,538 | 119 | 165 | 9,067 |
CONSOLIDATED STATEMENT OF CASH FLOWS
| | | Unaudited 6 months ended 30 June 2022 | Unaudited 6 months ended 30 June 2021 | Audited 31 December 2021 |
| ||
| | | £'000 | £'000 | £'000 |
| ||
| | CASH FLOW FROM CONTINUING OPERATING ACTIVITIES | | | |
| ||
| | Loss before tax | (1,367) | (2,352) | (4,368) |
| ||
| | Add back: | | | |
| ||
| | Depreciation | 287 | 254 | 508 |
| ||
| | Amortisation of intangible assets | 363 | 470 | 680 |
| ||
| | Fair value adjustment to share warrants | - | - | 3 |
| ||
| | Finance costs | 19 | 16 | 36 |
| ||
| | Share-based payments expense | 207 | 253 | 530 |
| ||
| | Operating cash flows before movement in working capital | (491) | (1,359) | (2,611) |
| ||
| | Movement in inventories | (160) | (236) | (149) |
| ||
| | Movement in trade and other receivables | 531 | (691) | (592) |
| ||
| | Movement in trade and other payables | (743) | 55 | 1,045 |
| ||
| | Movement in provisions | - | 12 | 12 |
| ||
| | Cash used in operations | (863) | (2,219) | (2,295) |
| ||
| | Income taxes received/(paid) | 181 | (2) | 476 |
| ||
| | NET CASH FLOWS FROM OPERATING ACTIVITIES | (682) | (2,221) | (1,819) |
| ||
| | | | | | |||
|
| CASH FLOWS FROM INVESTING ACTIVITIES | | | | |||
|
| Purchase of property, plant and equipment | (157) | (113) | (503) | |||
|
| Interest receivable | - | 1 | 1 | |||
|
| Internally generated and purchase of intangible assets | (582) | (465) | (1,275) |
| ||
|
| NET CASH USED IN INVESTING ACTIVITIES | (739) | (577) | (1,777) |
| ||
|
| | | | |
| ||
|
| CASH FLOWS FROM FINANCING ACTIVITIES | | | |
| ||
|
| Issue of new shares | - | - | 13 |
| ||
|
| Principal elements of lease payments | (112) | (96) | (195) |
| ||
|
| Finance costs paid | (19) | (16) | (37) |
| ||
|
| NET CASH USED IN FINANCING ACTIVITIES | (131) | (112) | (219) |
| ||
|
|
NET DECREASE IN CASH AND CASH EQUIVALENTS | (1,552) | (2,910) | (3,815) |
| ||
|
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 4,950 | 8,774 | 8,774 |
| ||
|
| Exchange gains/(losses) on cash and cash equivalents | 146 | (15) | (9) |
| ||
|
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | 3,544 | 5,849 | 4,950 |
| ||
NOTES TO THE CONSOLIDATED INTERIM REPORT
for the six months ended 30 June 2022
1. BASIS OF PREPARATION AND ACCOUNTING POLICIES
The financial information contained in this interim report has not been audited by the Group's auditor and does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006. The Directors approved and authorised this interim report on 18 August 2021. The financial information for the preceding full year is extracted from the statutory accounts for the financial year ended 31 December 2021. Those accounts, upon which the auditor issued an unqualified opinion and did not include a statement under Section 498(2) or (3) of the Companies Act 2006, have been delivered to the Registrar of Companies.
This interim report has been prepared in accordance with UK AIM Rules for Companies. The Group has not applied IAS 34 "Interim Financial Reporting" (which is not mandatory for AIM listed companies) in the preparation of this interim report. The interim report has been prepared in a manner consistent with the accounting policies set out in the statutory accounts for the financial year ended 31 December 2021.
The Company is a limited liability company incorporated and domiciled in England & Wales and whose shares are quoted on AIM, a market operated by The London Stock Exchange. The Group financial statements are presented in pounds Sterling.
Going concern
The Board has reviewed recently updated cash flow forecasts for the period to the end of 2023 based on latest trading and estimates and assumptions for future product development projects, sales pipeline, revenues and costs and timing and quantum of investments in the R&D programmes. The forecasts indicate that the Group may need additional funding within the next 12 months. Although there is no guarantee, the Directors have a reasonable expectation that the Group will be able to obtain further financing to support its ongoing development and commercialisation activities and continue in operational existence for the next 12 months. On this basis, the Directors continue to apply the going concern basis in preparing this Interim report. Accordingly, the financial statements do not include any adjustments that would result from the going concern basis of preparation being inappropriate.
2. BASIS OF CONSOLIDATION
The consolidated interim report incorporates the results of the Company and its subsidiary undertakings.
3. NEW ACCOUNTING STANDARDS
Several amendments and interpretations apply for the first time in 2022, but do not have an impact on the interim condensed consolidated financial statements of the Group.
4. REVENUE ANALYSIS
The following table provides an analysis of the Group's revenue by type and geography based upon location of the Group's customers.
| Unaudited 6 months ended 30 June 2022 | Simulation | Clinical AI | Total |
| | £'000 | £'000 | £'000 |
| United Kingdom | 4,020 | 125 | 4,145 |
| North America | 1,096 | 83 | 1,179 |
| Rest of World | 484 | 92 | 576 |
| | 5,600 | 300 | 5,900 |
| Unaudited 6 months ended 30 June 2021 | Simulation | Clinical AI | Total |
| | £'000 | £'000 | £'000 |
| United Kingdom | 1,550 | 19 | 1,569 |
| North America | 1,261 | - | 1,261 |
| Rest of World | 777 | 32 | 809 |
| | 3,588 | 51 | 3,639 |
| Audited 12 months ended 31 December 2021 | Simulation | Clinical AI | Total |
| | £'000 | £'000 | £'000 |
| United Kingdom | 2,503 | 50 | 2,553 |
| North America | 2,733 | - | 2,733 |
| Rest of World | 2,154 | 156 | 2,310 |
| | 7,390 | 206 | 7,596 |
5. TAXATION
|
| Unaudited 6 months ended 30 June 2022
£'000 | Unaudited 6 months ended 30 June 2021
£'000 | Audited year ended 31 December 2021 £'000 |
| R&D tax credit | 336 | 335 | 769 |
| R&D tax credit relating to prior periods | - | - | (11) |
| US corporation tax | (3) | (2) | - |
| | 333 | 333 | 758 |
6. LOSS PER SHARE
|
| Unaudited 6 months ended 30 June 2022
£'000 | Unaudited 6 months ended 30 June 2021
£'000 | Audited year ended 31 December 2021 £'000 |
| Loss for the year after taxation | (1,034) | (2,019) | (3,610) |
|
Number of shares: |
No. |
No. |
No. |
| Basic and diluted weighted average number of ordinary shares | 270,653,485 | 269,396,792 | 269,964,886 |
| Basic and diluted loss pence per share | (0.38) | (0.75) | (1.34) |
In the periods ended 30 June 2022, 30 June 2021 and 31 December 2021 there were share options in issue which could potentially have a dilutive impact, but as the Group is loss making in all periods, they are anti-dilutive and therefore the weighted average number of ordinary shares for the purpose of the basic and dilutive loss per share is the same.
7. INTANGIBLE ASSETS
The net book value of intangible assets at 30 June 2022 includes intellectual property and brands acquired with the purchase of Intelligent Ultrasound Limited totalling £0.7m (31 December 2021: £0.8m). The remaining net book value of intangible assets relate to capitalised development costs of £2.0m.
8. CURRENT LIABILITIES - TRADE AND OTHER PAYABLES
|
| Unaudited 30 June 2022 £'000 | Unaudited 30 June 2021 £'000 | Audited 31 December 2021 £'000 |
| | | | |
| Trade payables | 874 | 894 | 1,353 |
| Taxation and social security | 137 | 180 | 179 |
| Accruals | 955 | 760 | 1,235 |
| Warrants | - | 61 | - |
| | 1,966 | 1,895 | 2,767 |
9. SHARE CAPITAL
|
| | |
| Allotted, issued and fully paid: | No. | £'000 |
| Ordinary shares of 1p each | | |
| Balance at 1 January 2022 | 270,653,485 | 2,707 |
| Shares issued for cash | - | - |
| Balance at 30 June 2022 | 270,653,485 | 2,707 |
| Balance at 31 December 2021 | 270,653,485 | 2,707 |
10. INTERIM ANNOUNCEMENT
A copy of this report will be posted on the Company's website at www.intelligentultrasound.com
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