• Operational restructuring delivers $4.7M in annualized cost savings
• New CONNEQT Pulse and App launch driving increased revenue
• Secured additional $446K in R&D loan facility post-quarter

Cardiex Ltd has reported its Q1 2025 quarterly cash flows, showcasing progress in its operational restructuring initiatives. The company has successfully centralized its engineering and development teams from the U.S. and other offshore locations to Sydney, resulting in a 30% reduction in its cost base and annualized cost savings of approximately $4.7 million (around $0.4 million per month) based on the FY25 year-to-date run rate. This has reduced the company's annual expense base from approximately $17 million in FY24 to a new level of about $10 million. These cost efficiencies are already contributing positively to cash flow in Q4, with full benefits expected to be realized in Q1 FY26.In addition, Cardiex launched the CONNEQT Pulse and App during Q3, which is already producing new sources of revenue from digital, product, and solution offerings. These new revenue streams, combined with the existing ATCOR business, are expected to deliver increasing sales revenue and gross margin that will positively contribute to cash flow in Q4 and into the future.The company has also taken steps to secure additional funding, with C2 Ventures, the lead shareholder, fully funding its $250,000 commitment to the December 2024 capital raising. Cardiex is working with its advisors and in discussions with C2 Ventures and investors in Australia and the U.S., with the expectation that additional capital will be raised in Q4 to enable the company to reach cash flow positive trading.Post quarter end, Cardiex increased its facility limit on its R&D Term Loan Facility with Mitchell Asset Management Pty Ltd, resulting in a draw down of an additional $446k from the facility.

The company's streamlining of operations, with significant expense base reductions, and increasing sales revenue from new and existing sources, are expected to deliver strongly positive cash flow results, initially reducing negative cash flow and then enabling a move to positive cash flow.