Completion of the review of the Company’s product portfolio
Current Report No. 5/2021
Legal basis: Article 17(1) of MAR – inside information
The Management Board of Medicalgorithmics S.A. (“the Company”) hereby informs that as a result of reviewing the Company’s product portfolio, on March 4, 2021, adopted a resolution on discontinuation of further development works on the PocketECG 12Ch device. The Company previously announced in the periodic financial reports that works on the PocketECG 12Ch device was suspended at the stage of the YOKE prototype.
The decision of the Management Board is determined by willingness to optimize resources and competence. In the opinion of the Management Board, it is in the best interest of the Company to allocate resources and operations to projects with the best chance of quick commercialization in the short and medium term. As a result, the Company will focus on continuing the development of the following projects: the Patch ECG project, which is complementary to the PocketECG IV device already developed, and will enable the expansion of the service portfolio in the fastest growing segment of the cardiological diagnostics market in the US, and the TechBot project, development of which will improve the economic efficiency of the services offered.
The consequence of the this decision will be the recognition of a one-off financial event consisting in updating the value of assets assigned to the PocketECG 12Ch project by the amount of PLN 3.1 million. This event will have a negative impact on the financial result for 2020 and will not affect the Company’s current cash flow situation.
In the opinion of the Management Board, the decision made is in the best interest of the Company and the shareholders, as it will allow the Company to optimally use investment and operating expenditure in projects of fundamental importance for the sales growth and efficiency of the business activity.