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INTERIM REPORT TABLE OF CONTENTS I. INTERIM MANAGEMENT REPORT 2 II. INTERIM CONDENSED UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MDXHEALTH SA 3 1. CONDENSED UNAUDITED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER C

Key Takeaway: I. INTERIM MANAGEMENT REPORT 2 II. INTERIM CONDENSED UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MDXHEALTH SA 3 1. CONDENSED UNAUDITED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 3 2. CONDENSED UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION 4 3

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I. INTERIM MANAGEMENT REPORT 2
II. INTERIM CONDENSED UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MDXHEALTH SA 3
1. CONDENSED UNAUDITED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 3
2. CONDENSED UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION 4
3. CONDENSED UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 5
4. CONDENSED UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS 6
5. EXPLANATORY NOTES 7
III. CORPORATE INFORMATION 15
This Interim Report contains forward-looking statements
and estimates with respect to the anticipated future performance of MDxHealth SA and its wholly-owned subsidiaries (hereinafter "mdxhealth"
or the "Company") and the market in which it operates. Such statements and estimates are based on assumptions and assessments
of known and unknown risks, uncertainties and other factors, which were deemed reasonable but may not prove to be correct. Actual events
are difficult to predict, may depend upon factors that are beyond the company's control, and may turn out to be materially different.
Important factors that could cause actual results, conditions and events to differ materially from those indicated in the forward-looking
statements include, among others, the following: uncertainties associated with the coronavirus (COVID-19) pandemic, including its possible
effects on our operations, and the demand for the Company's products; the Company's ability to successfully and profitably
market its products; the acceptance of its products and services by healthcare providers; the willingness of health insurance companies
and other payers to cover its products and services and adequately reimburse us for such products and services; and the amount and nature
of competition for its products and services. Mdxhealth expressly disclaims any obligation to update any such forward-looking statements
in this Interim Report to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances
on which any such statement is based unless required by law or regulation. This Interim Report does not constitute an offer or invitation
for the sale or purchase of securities or assets of mdxhealth in any jurisdiction. No securities of mdxhealth may be offered or sold within
the United States without registration under the U.S. Securities Act of 1933, as amended, or in compliance with an exemption therefrom,
and in accordance with any applicable U.S. securities laws.
Key non-audited financials, as of June 30,
Key unaudited consolidated figures for the six
months ended June 30, 2022 (thousands of US dollars, except per share data):
Jan-June 2022 Jan-June 2021 Change % Change
Services 12,975 10,462 2,513 24 %
Licenses and royalties 34 269 (235 ) (87 )%
Total Revenue 13,009 10,731 2,278 21 %
Gross Profit 5,772 5,215 557 11 %
Operating expenses (22,795 ) (17,658 ) (5,137 ) 29 %
Operating loss (17,023 ) (12,443 ) (4,580 ) 37 %
Net loss (18,104 ) (13,299 ) (4,805 ) 36 %
Basic and diluted loss per share (0.12 ) (0.12 ) 0 0 %
Total revenue for the first half of 2022 was $13.0
million compared to total revenue of $10.7 million for the first half of 2021, an increase of 21%. Services revenue amounted to $13.0
million, an increase of 24% as compared to $10.5 million a year earlier.
Gross profit on products and services for the
first half of 2022 was $5.8 million as compared to $5.2 million for the first half of 2021. Gross margins on products and services declined
to 44.4% for the first half of 2022 as compared to 48.6% for the same period in 2021, primarily due to timing of cash receipts for our
UTI test, which is expected to reverse in the second half of 2022. In addition, we expect coverage of our Select mdx test, as well as
our recently acquired Oncotype GPS business, to contribute further to gross margin growth in the second half of 2022.
Operating expenses in the first half of 2022 were
$22.8 million versus $17.7 million for the first half of 2021, primarily due to additional public company expenses as a result of the
Operating loss and net loss for the first half
of 2022 were $17.0 million and $18.1 million, respectively, with losses increasing compared to $12.4 million and $13.3 million, respectively,
over the same period in 2021, for the reasons stated above.
Justification to continue using the accounting
rules on the basis of going concern
The Company has experienced net losses and significant
cash used in operating activities since its inception in 2003, and as of June 30, 2022, had an accumulated deficit of $262.4 million,
a net loss of $18.1 million, and net cash used in operating activities of $15.1 million. Management expects the Company to continue to
incur net losses and have significant cash outflows for at least the next twelve months. While these conditions, among others, could raise
doubt about its ability to continue as a going concern, these consolidated financial statements have been prepared assuming that the Company
will continue as a going concern. This basis of accounting contemplates the recovery of its assets and the satisfaction of liabilities
in the normal course of business. A successful transition to attaining profitable operations is dependent upon achieving a level of positive
cash flows adequate to support the Company's cost structure.
As of June 30, 2022, the Company had cash and
cash equivalents of $40.0 million. Taking into account the above financial situation and on the basis of the most recent business plan,
the Company believes that it has sufficient cash to be able to continue its operations for at least the next twelve months from the date
of issuance of these financial statements, and accordingly has prepared the consolidated financial statements assuming that it will continue
as a going concern. This assessment is based on forecasts and projections within management's most recent business plan, which takes
into account the Company's acquisition of the Oncotype DX GPS business from Exact Sciences (discussed further in Footnote 10 -
Subsequent Events) as well as the Company's expected ability to realize cost reductions should these forecasts and projections not
Principal risks related to the business
The principal risks related to the mdxhealth's
business activities have been outlined in the 2021 Annual Report, which is available on the internet at www.mdxhealth.com/investors/financials
Declaration of responsible persons
The Board of Directors of MDxHealth SA, represented
by all its members, declares that, as far as it is aware, the financial statements in this Interim Report, made up according to the applicable
standards for financial statements, give a true and fair view of the equity, financial position and the results of the company and its
consolidated companies. The Board of Directors of MDxHealth SA, represented by all its members, further declares that this Interim Report
gives a true and fair view on the information that has to be contained herein. The condensed consolidated interim financial statements
have been prepared in accordance with International Accounting Standard (IAS) 34 (Interim Financial Reporting) as issued by the International
Accounting Standards Board, or IASB, and as adopted by the EU.
II. INTERIM CONDENSED UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
For the six months ended June 30, 2022
In thousands of USD (except per share data)
Condensed unaudited consolidated statement of profit or loss
Note Jan-June 2022 Jan-June 2021
Services 4 12,975 10,462
Licenses 4 0 250
Royalties and other revenues 4 34 19
Revenues 13,009 10,731
Cost of goods & services sold (7,237 ) (5,516 )
Gross Profit 5,772 5,215
Research and development expenses (3,585 ) (2,823 )
Selling and marketing expenses (9,848 ) (8,247 )
General and administrative expenses (9,636 ) (6,739 )
Other operating income, net 274 151
Operating loss (17,023 ) (12,443 )
Financial income 27 0
Financial expenses (1,107 ) (856 )
Loss before income tax (18,103 ) (13,299 )
Income tax (1 ) 0
Loss for the period (18,104 ) (13,299 )
Loss for the period attributable to the parent (18,104 ) (13,299 )
Loss per share attributable to parent
Basic and diluted (0.12 ) (0.12 )
Condensed unaudited consolidated statement of other comprehensive income
Loss for the period (18,104 ) (13,299 )
Other comprehensive income
Items that will be reclassified to profit or loss:
Exchange differences arising from translation of foreign operations 588 122
Total other comprehensive income 588 122
Total comprehensive loss for the period (net of tax) (17,516 ) (13,177 )
In thousands of USD
Note as of June 30, 2022 as of December 31, 2021
ASSETS
Intangible assets 3,104 3,448
Property, plant and equipment 2,364 1,671
Right-of-use assets 3,168 3,347
Non-current assets 8,636 8,466
Inventories 2,089 1,911
Trade receivables 6 5,036 4,582
Prepaid expenses and other current assets 2,724 1,615
Cash and cash equivalents 6 40,025 58,498
Current assets 49,874 66,606
Total assets 58,510 75,072
EQUITY
Share capital 128,454 128,454
Issuance premium 153,177 153,177
Accumulated deficit (262,406 ) (244,302 )
Share-based compensation 10,986 10,607
Foreign currency translation reserves (449 ) (1,037 )
Total equity 29,762 46,899
LIABILITIES
Deferred tax liability 129 0
Loans and borrowings 5 3,291 7,651
Lease liabilities 5 2,454 2,624
Other non-current financial liabilities 5/6/7 1,934 1,466
Non-current liabilities 7,808 11,741
Loans and borrowings 5 7,760 4,441
Lease liabilities 5 870 840
Trade payables 6 9,836 7,455
Other current liabilities 2,062 2,735
Other current financial liabilities 5/6/7 412 961
Current liabilities 20,940 16,432
Total liabilities 28,748 28,173
Total equity and liabilities 58,510 75,072
Attributable to owners of MDxHealth SA
In thousands of USD, except number of shares Number of shares Share capital and issuance premium Retained earnings Share-based compensation Translation reserves Total equity
Note 10 Note 9
Balance at January 1, 2021 90,691,449 213,065 (215,300 ) 9,385 (1,301 ) 5,849
Loss for the period (13,299 ) (13,299 )
Other comprehensive income 122 122
Total comprehensive income for the period (13,299 ) 122 (13,177 )
Transactions with owners in their capacity as owners:
Issuance of shares, net of transaction costs 27,777,777 28,336 28,336
Share-based compensation 486 486
Balance at June 30, 2021 118,469,226 241,401 (228,599 ) 9,871 (1,179 ) 21,494
Balance at January 1, 2022 155,969,226 281,631 (244,302 ) 10,607 (1,037 ) 46,899
Loss for the period (18,104 ) (18,104 )
Other comprehensive income 588 588
Total comprehensive income for the period (18,104 ) 588 (17,516 )
Transactions with owners in their capacity as owners:
Share-based compensation 379 379
Balance at June 30, 2022 155,969,226 281,631 (262,406 ) 10,986 (449 ) 29,762
In thousands of USD
Note Jan-June 2022 Jan-June 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Operating loss (17,023 ) (12,443 )
Depreciation and amortization 1,576 1,514
Share-based compensation 379 486
Non-cash fair value change (20 ) (195 )
Non-cash foreign exchange rate change 30 (339 )
Cash generated from operations before working capital changes (15,058 ) (10,977 )
Changes in operating assets and liabilities
(Increase)/decrease in inventories (178 ) 205
Increase in receivables (1,563 ) (474 )
Increase/(decrease) in payables 1,708 (396 )
Net cash outflow from operating activities (15,091 ) (11,642 )
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment (925 ) (411 )
Purchase of intangible assets (451 ) 0
Interests received 27 0
Net cash outflow from investing activities (1,349 ) (411 )
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of shares, net of transaction costs 0 28,336
Payment of loan obligation 5 (439 ) 0
Payment of lease liability 5 (663 ) (536 )
Payment of interest (511 ) (515 )
Net cash inflow from financing activities (1,613 ) 27,285
Net increase in cash and cash equivalents (18,053 ) 15,232
Cash and cash equivalents at beginning of the period 58,498 15,953
Effect of exchange rates (420 ) 133
Cash and cash equivalents at end of the period 40,025 31,318
MDxHealth, SA together with its subsidiaries are
herein referred to as "mdxhealth" or the "Company". Mdxhealth is a company domiciled in Belgium, with offices
and labs in the United States and The Netherlands. The reporting and functional currency of the Company is the U.S. Dollar.
The condensed consolidated interim financial statements
have been prepared in accordance with International Accounting Standard (IAS) 34 - Interim Financial Reporting, as issued by the
International Accounting Standards Board, or IASB, and as adopted by the EU.
These interim consolidated financial statements
do not include all the information required for full annual financial statements and should be read in conjunction with the consolidated
financial statements of the Company as of, and for the year ended, December 31, 2021.
The Company ended the period with $40.0 million
in cash and cash equivalents as of June 30, 2022, and continued to incur losses. The Company is expecting continued losses and negative
operating cash flows in the coming twelve months. Taking into account the above financial situation and on the basis of the most recent
business plan, the Company believes that it has sufficient cash to be able to continue its operations for at least the next twelve months
from the date of issuance of these financial statements, and accordingly has prepared the consolidated financial statements assuming that
it will continue as a going concern. This assessment is based on forecasts and projections within management's most recent business
plan as well as the Company's expected ability to realize cost reductions should these forecasts and projections not be met.
The Company applies the International Financial
Reporting Standards (IFRS) as issued by the IASB and as adopted by the EU. The same accounting policies, presentation and methods of computation
have been followed in these condensed financial statements as were applied in the preparation of the Company's financial statements
for the year ended December 31, 2021. No amendments to existing standards that became applicable as from January 1, 2022, have a material
impact on the consolidated financial statements or accounting policies.
The preparation of the interim condensed financial
statements in compliance with IAS 34 requires the use of certain critical accounting estimates. It also requires the Company's management
to exercise judgment in applying the Company's accounting policies. The Company has applied the same accounting policies and there
have been no material revisions to the nature and amount of estimates and judgments in its interim condensed financial statements.
The COVID-19 outbreak has impacted management's
estimates, judgments and assumptions, and could impact the Company's ability to develop business, conduct operations, and obtain
components used in its business. The situation is continuously evolving, therefore the extent to which the COVID-19 outbreak will continue
to impact business and the economy is highly uncertain and is extremely difficult to predict. Accordingly, the Company cannot accurately
Last updated: Aug 26, 2022