PainChek cuts losses with first revenue from pain recognition app
Health & Biotech
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Pain recognition app PainChek has slashed its losses in its latest half yearly after its commercial launch of the technology.
PainChek makes mobile medical apps that use facial recognition to assess pain in patients who are unable to communicate with their carers.
For the December half, the company (ASX:PCK) reported a loss of $3.4 million, compared to a $6.9 million loss the year before.
However cash receipts from licensing customers totalled just $14,940. The decrease in costs is largely attributable to a corporate restructure that cost upwards of $4 million last year.
Decreasing costs is a move forward for the electronic pain assessment tool – which changed its name from ePat to PainChek earlier this year.
Director Philip Dafas told Stockhead at the time the new name would be a winner.
The rebranding cost $161,000 in sales and marketing expenses — but it seems to be working.
An agreement with Dementia Services Australia was signed last year and will be rolled out throughout the current quarter. PainChek has a strong pipeline of enterprise clients through the residential aged care community.
After a $3.75 million capital raise in September the company finished the half-year with $4.7 million in the bank.
The stock fell 3 per cent to 6c on Monday.
The app is awaiting US regulatory approval from the Food and Drug Administration (FDA), and is confident it will pass by the end of 2018 for further global expansion of the technology.