- Digital healthcare company ResApp Health (RAP) has reported just $3000 in customer receipts over the September quarter
- Despite securing partnerships with telehealth companies for its respiratory diagnostic test, ResApp experienced less of an uptake than expected
- This is due to more free-to-use platforms and social distancing measures resulting in lower rates of acute respiratory disease
- Positively, however, ResApp launched its sleep apnoea screening test, SleepCheck, on the iPhone App Store in 36 countries
- SleepCheck has now been downloaded 3946 times and ResApp expects material customer receipts by the end of this quarter
- ResApp spent around $1.2 million on marketing, product manufacturing, as well as staff and admin costs
- It ended the quarter with around $5.8 million in cash reserves
- Company shares have dropped 11.8 per cent to trade for 9.7 cents
ResApp Health (RAP) has reported some less-than-pleasing results in its September 2020 quarterly report.
The digital healthcare company spent over $1.65 million on operating activities, including research and development, product manufacturing, as well as staff and administration costs.
However, ResApp did receive $196,000 in government grants and tax incentives from JobKeeper and cash flow boost programs, leaving it to go cashflow-negative by $1.45 million in the September quarter.
Unfortunately, ResApp received only $3000 from customer receipts.
At the turn of the new financial year, ResApp signed a two-year service agreement with Coviu to make its acute respiratory diagnostic test available to Coviu’s telehealth customers in Australia. Under the agreement, ResApp receives a licence fee of between $5 and $10 for each test.
This marked a significant deal as over 22,000 health professionals actively use the Coviu platform.
Unfortunately, however, ResApp didn’t witness too many tests from the partnership during the quarter. As it seems, this was due to Coviu’s GP user base moving to Coviu’s healthdirect video call platform, which is currently free to use due to COVID-19.
ResApp is discussing the possibility to have its ResAppDx test available on the healthdirect platform.
The company also noticed a similar trend with the launch of its software on Phenix Health’s telehealth mobile application.
Patients have been able to access free telehealth through their regular GP while Phenix hasn’t been able to offer bulk-billed consultations. Coupled with social distancing measures leading to reduced respiratory disease rates, Phenix hasn’t seen enough consultations that would require the use of the ResAppDx platform.
Nevertheless, the healthcare stock did continue to supply its technology to the Health Hub Doctors Morayfield clinic. The clinic tends to around 300 patients every day and has over 65 GPs and specialists. The partnership gives ResApp real-world evidence and feedback that can be used for commercialisation and research.
Before the end of the quarter, ResApp launched its sleep apnoea screening test, SleepCheck, on the iPhone App Store in 36 countries and is available in multiple languages.
ResApp attributes the mere $3000 in customer receipts to just receiving payment from Apple for SleepCheck downloads during June and July. It expects to receive payments for August and September downloads at the end of the current quarter.
Additionally, the recent launch of ResAppDx onto select Android devices will lead to new telehealth licensing opportunities.
Pleasingly, ResApp saw significant growth in SleepCheck downloads during the quarter. 3768 downloads were achieved — bringing the total amount to 3946. The company attributes this to its marketing campaign in August.
“Our national marketing campaign for SleepCheck has resulted in good uptake amongst consumers. Download rates have continued to grow strongly month-by-month and we anticipate that these will increase as more aggressive marketing continues in the UK and other countries,” Managing Director and CEO Dr Tony Keating said.
At the end of the quarter, ResApp had around $5.8 million in cash reserves.
Company shares have dropped 11.8 per cent to trade for 9.7 cents at 11:01 am AEDT.