Interim Report & Financial Statements

EDX Medical Group, plc ("EDX Medical", the "Company" or the "Group"), which develops innovative digital diagnostic products and services for the personalised treatment for cancer, heart disease and infectious diseases, today announces publication of its Interim Report and Financial Statements for the six-month period ended 30 September 2023.

Highlights:

Collaboration agreement with Thermo Fisher to jointly develop and potentially commercialise proprietary qPCR assays - including novel and innovative cancer diagnostic solutions.

Acquisition and integration of Hutano Diagnostics Ltd, enabling the Group to accelerate development of new 'point-of-care' tests to measure multiple markers of disease on a single device.

Strategic agreement with Guardant Health Inc. (NASDAQ: GH), a leading precision oncology company, as the exclusive distributor of blood-based liquid biopsy tests to healthcare providers in the Nordic region and the private healthcare sector in the UK.

Commencement of revenue generation through Guardant agreement.

Cash balance at 30 September 2023: £1,104,801.

Strategic investment from investors including: £500,000 from Boru Ltd, a private investment company which invests in growth companies on a global basis, at a price per share of £0.08, announced on 30 June 2023 and £350,000 from Seerave Enterprises Ltd, a philanthropic non-profit organisation which has a global commitment to improving patient access to personalised cancer treatment, at a price per share of £0.08 announced on 26 May 2023.

Jason Holt, Chairman of EDX Medical Group plc, commented:

"During the reporting period, the Group has continued to develop its strategy of creating innovative digital diagnostic healthcare products and services to address major diseases and enable better treatment and outcomes for patients.

"The imperative for the Group post this half-yearly interim reporting period remains growing our business rapidly as opportunities emerge to take forward products and projects with significant commercial potential.

"As we progress the commercial opportunities available, we will continue to explore emerging prospects for novel diagnostic products as well as assessing further investment options that expand the scale of and growth prospects for the Group."

Learn more: www.edxmedical.co.uk

EDX Medical Group Plc

Interim Report and Financial Statements

For the six-month period ended 30 September 2023

Company registration number: 13277385 (England and Wales)

EDX MEDICAL GROUP PLC

INTERIM REPORT AND FINANCIAL STATEMENTS

FOR THE SIX-MONTH PERIOD ENDED 30 SEPTEMBER 2023

CONTENTS

Page

INTERIM MANAGEMENT REPORT

During the reporting period, EDX Medical Group PLC ("EDX Medical," "the Company" or together with its subsidiaries "the Group") has continued to develop its strategy of creating innovative digital diagnostic healthcare products and services to address major diseases and enable better treatment and outcomes for patients.

The imperative for the Group post this half-yearly interim reporting period remains growing our business rapidly as opportunities emerge to take forward products and projects with significant commercial potential.

EDX Medical has invested in high quality commercial and scientific personnel as well as raising capital to undertake the necessary steps to grow our business. We have also invested sensibly in very compelling new product areas that have attractive future markets and revenue generation opportunities as follows:

Our acquisition and integration of Hutano Diagnostics Ltd ("Hutano"), based in Oxford, enables the Group to accelerate and expand our development capabilities of innovative, new 'point-of-care' tests capable of accurately measuring a combination of multiple markers of disease on a single device within minutes.

These new tests will be used by health professionals in their daily workplace to rapidly identify and characterise emerging signs of cancer, infections, and heart disease and can be carried out, without the delays and costs associated with laboratory testing.

The first products in development address the detection, characterisation and quantification of infectious diseases caused by bacteria and viruses such as fever and sepsis and are expected to be available commercially within the next twelve months.

Point-of-Care Testing is a global market opportunity for our business and the combination of Hutano's technology and our existing expertise with reagents and smart-phone digital readers positions the Group as pioneers in this area.

Post the reporting period, we finalised a strategic agreement with Guardant Health Inc. (NASDAQ: GH), a leading precision oncology company, as the exclusive distributor of Guardant Health's blood-based liquid biopsy tests to healthcare providers in the Nordic region and the private healthcare sector in the UK. This presents EDX Medical with an opportunity to drive forward with revenue generating products. Under the agreement, EDX Medical will distribute the Guardant360® CDx test for genomic testing in advanced cancer and the Guardant Reveal™ test for residual disease and recurrence detection.

The distribution contract with Guardant Health is another step in our strategy to provide healthcare professionals with world-class products and services to rapidly improve cancer diagnosis, drug therapy selection, and recurrence detection, delivering improved clinical outcomes for patients.

EDX Medical has also recently signed a collaboration agreement with Thermo Fisher to jointly develop and potentially commercialise a number of proprietary qPCR assays - including novel and innovative cancer diagnostic solutions. The multi project collaboration will harness Thermo Fisher's powerful technologies and information translation systems to deliver a number of advanced testing solutions in development at EDX Medical or licensed from partners, including a proprietary assay to enable personalised radiotherapy and a novel chemotherapy toxicity assay focusing on serious adverse events.

Financial Summary

During the period, the majority of the Company's administrative expenditure has related to expenses incurred in connection with preparing the Company to be able to deliver in line with the strategy outlined above. The loss for the six-month period was £1,336,723 (Loss in period to 30 September 2022: £684,854).

Trade and other receivables as at 30 September 2023 were £531,543 (September 2022: £193,024).

The cash balance as at 30 September 2023 was £1,104,801 (September 2022: £86,924).

Trade and other payables at 30 September 2023 were £547,846 (September 2022: £787,205).

Overall, at the period-end, net assets/(liabilities) were £388,000 (September 2022: (£691,397)).

The outlook for the remainder of the financial year remains positive. As we move towards our first anniversary as a listed company, we are now clearly entering into a new phase for the Group and during the first half of this financial year we have attracted significant new investment at a premium from investors who have embraced our vision. Our business strategy was endorsed at our recent AGM. As we progress the commercial opportunities available, we will continue to explore emerging prospects for novel diagnostic products as well as assessing further investment options that expand the scale of and growth prospects for the Group.

These prospects align with the EDX directors' belief of the need for better access to risk assessment, diagnosis and personalised treatment of illness. This need has never been greater as the post-pandemic world becomes accustomed to ever-increasing patient backlogs and the imperative drive for fast, effective diagnosis. Hence, the Group wishes to pioneer the universal trend of personalised medicine that detects the early onset of disease as well as accentuates accurate risk prediction. The Group sees this twin approach as the most impactful way to reduce deaths and lowering the future costs of healthcare provision globally.

Finally, as Chairman of EDX Medical Group Plc, I would like to thank my fellow Board directors, new investors, shareholders and all the teams within the Group who are working together to grow our new enlarged business in 2023 and beyond.

Jason Holt

Chairman

EDX MEDICAL GROUP PLC

CONDENSED CONSOLIDATED STATEMENT OF TOTAL

COMPREHENSIVE INCOME

FOR THE SIX-MONTH PERIOD ENDED 30 SEPTEMBER 2023

Earnings per share from continuing operations attributable to owners of the parent:

The notes on pages 8 to 13 form part of these interim financial statements.

EDX MEDICAL GROUP PLC

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2023

The Interim Report and Financial Statements were approved by the Board of Directors and authorised for issue on 8 December 2023.

The notes on pages 8 to 13 form part of these interim financial statements.

EDX MEDICAL GROUP PLC

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX-MONTH PERIOD ENDED 30 SEPTEMBER 2023

The notes on pages 8 to 13 form part of these interim financial statements.

EDX MEDICAL GROUP PLC

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX-MONTH ENDED 30 SEPTEMBER 2023

The notes on pages 8 to 13 form part of these interim financial statements.

EDX MEDICAL GROUP PLC

NOTES TO THE INTERIM FINANCIAL STATEMENTS

FOR THE SIX-MONTH PERIOD ENDED 30 SEPTEMBER 2023

Company information

EDX Medical Group Plc (the "Company") is a public limited company, limited by shares (not guarantee) and is incorporated and domiciled in the UK. The address of the registered office is 211 Milton Road, Cambridge, England, CB4 0WA The registered number of the Company is 13277385. The consolidated interim financial statements consolidate those of the Company and its subsidiaries. The principal activity of the Group is that of creating innovative health testing solutions and developing biological and digital technologies to improve the detection of diseases and disorders.

Summary of significant accounting policies

Basis of preparation

These condensed consolidated interim financial statements include the results of the Company and its subsidiaries ("the Group") for the six months ended 30 September 2023 and have not been audited. These condensed consolidated interim financial statements do not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006.

These condensed consolidated interim financial statements have been prepared in accordance with the AQSE Growth Market rules and the recognition and measurement requirements of UK-adopted International Accounting Standards ("UK-IAS") and adopting the accounting policies that will be applied in the 31 March 2024 annual financial statements.

The condensed consolidated interim financial statements have been prepared in accordance with the accounting policies adopted in the Group's most recent annual financial statements for the period ended 31 March 2023 and should be read in conjunction with these financial statements which is available on the Group's website www.edxmedical.co.uk

In the opinion of the Directors, the interim consolidated financial information presents fairly the financial position, and results from operations and cash flows for the period. The prior period comparatives are not comparable with the current interim period, given that the prior period is unaudited and not consolidated, due to the reverse takeover of EDX Medical Ltd by the Company which did not complete until November 2022.

The auditor's report on the statutory financial statements for the period ended 31 March 2023 was unqualified but did contain a material uncertainty with respect of going concern.

Basis of consolidation

The consolidated interim financial statements consolidate the interim financial statements of the Company and the results of its subsidiary undertakings EDX Medical Ltd, Torax Biosciences Limited and Hutano Diagnostics Ltd, made up to 30 September 2023.

On 27 September 2023, the Company acquired 100% of the share capital of Hutano Diagnostics Ltd in exchange for shares in the Company. This acquisition was accounted for using the acquisition method of accounting in accordance with IFRS 3 Business Combinations. Further details can be found in note 7.

Summary of significant accounting policies (continued)

Going concern

The condensed consolidated interim financial information for the six months ended 30 September 2023 have been prepared on the going concern basis. The forecasts for the Group include due consideration for contracted minimum revenues, potential future capital in-flows, continued operating losses, projected increase in cash-burn of the Group for a minimum period of at least twelve months from the date of approval of these interim financial statements.

However, the Group forecasts assume that further equity fundraising will be required in the next twelve months in order to implement its growth strategy and operate as a going concern. Although the entity has had past success in fundraising and continues to attract interest from investors, making the Board confident that such fundraising will be available to provide the required capital, there can be no guarantee that such fundraising will be available and, accordingly, this constitutes a material uncertainty over going concern, which the auditors made reference to in their audit report for the year ended 31 March 2023.

The interim financial statements have been prepared on a going concern basis and do not include the adjustments that would be required should the going concern basis of preparation no longer be appropriate.

Other gains/ (losses) - net

Business combinations

Summary of acquisition

The entire issued share capital of Hutano Diagnostics Ltd ("Hutano") was acquired by EDX Medical Group Plc on 27 September 2023 (the "Acquisition Date"). The initial purchase consideration to acquire 100% of the share capital of the Company was £1,000,000 to be satisfied by the issue of 9,090,909 new ordinary shares of £0.01 each in the Company at a deemed price of £0.11 per share plus contingent consideration of £200,000 to be satisfied by the issue of 1,818,182 new ordinary shares in the Company at a deemed price of £0.11 per share, conditional upon achieving agreed upon milestones.

On the Acquisition Date, one ordinary share of the Company was worth £0.028 in the market, establishing a fair value of the initial purchase consideration by way of issuing 9,090,909 acquisition shares of £254,544.

Management's expectation at the Acquisition Date was that the milestones would be met in full and have forecasted as such and therefore the contingent consideration has been included in the total consideration payable with no discount for the probability of the milestones not being met. The fair value of the contingent consideration by way of issuing 1,818,182 acquisition shares was £50,909. Therefore, the fair value consideration is £305,453.

Business combinations (continued)

The principal reason for the acquisition was the pooling of research and development resources allowing the Group to accelerate its efficiency in the development of its products.

The fair values include recognition of a technology-based intangible asset of £49,234 relates to the Hutano's modular lateral flow device ("LFD") platform technology and valuable know-how in developing LFDs and will be amortised over 20 years on a straight-line basis in line with the ongoing patent application.

Acquisition costs of £49,650 have been expensed to the Statement of Comprehensive Income and are within administrative expenses.

Intangible assets

Amortisation is recognised on a straight-line basis over a useful economic life of 10 years and has been charged to the Statement of Comprehensive Income.

Trade and other receivables

Convertible loan

Convertible loan note

In July 2022, the Group issued 1,400,000 convertible redeemable loan notes (CLNs) of £1.00 each, totalling £1,400,000, to settle an outstanding liability with Christopher Evans related to the sale of assets worth £1,404,923 to the Company. The CLNs were issued at par value, with no interest unless the Company faces administration or insolvency. The CLNs could be converted by the noteholder on or after October 31, 2022, contingent upon the Company's successful admission to the AQSE Growth Market, which occurred on November 14, 2022.

The conversion rate is one Company share per £0.06 nominal of CLN or a price per Company share reflecting a 20% discount to the volume-weighted average price (VWAP) over the three months prior to conversion date. The CLNs were presented in the Consolidated Statement of Financial Position as two separate components: 'Convertible loan - debt' and 'Convertible loan - derivative' due to the embedded derivative in conjunction with the host debt liability. The noteholder had the option to partially convert the CLNs but has not exercised this option as at 30 September 2023.

At 30 September 2023, the Company remeasured the derivative element at fair value using the Black Scholes option pricing model based on the exercise price of £0.06. The fair value at 30 September 2023 was £66,502, resulting in a gain on revaluation of the derivative being recognised of £27,385. Significant assumptions used in the fair value analysis include the volatility rate and the estimated date of conversion. The volatility of 68.3% was used in the determination of the fair value at 30 September 2023.

Given the option of the noteholder to convert the CLNs at their discretion, the debt and derivative liability elements have been classified as current liabilities. The host debt liability includes initial transaction costs of £15,786.

The holders of ordinary shares are entitled to one voting right per share and, subject to the provisions of the Companies Act 2006, are entitled to dividends out of the profits of the Company available for distribution.

New shares allotted

Bridgemere Securities Ltd ("Bridgemere Securities")

On 26 April 2023 the Company raised a total of £1,725,000 via the issue of 28,750,000 new ordinary shares in the Company at £0.06 per share. Bridgemere Securities invested £1,500,000 in the placing and bought a further 7,720,000 ordinary shares in the market between 20 and 21 April 2023 making Bridgemere Securities the second largest shareholder in the Company.

Seerave Enterprises Ltd ("Seerave Enterprises").

On 26 May 2023 the Company received a strategic investment of £350,000 from Seerave Enterprises via a subscription of 4,375,000 ordinary shares of £0.01 in the Company at a price of £0.08 per share.

Seerave Enterprises is a wholly owned subsidiary of the Seerave Foundation, a philanthropic non-profit organisation which has a global commitment to improving patient access to personalised cancer treatment. The Seerave Foundation awards traditional grants to academic researchers and makes selective equity investments into developing companies via its investment arm, Seerave Enterprises.

Boru Ltd ("Boru")

On 30 June 2023, the Company received a strategic investment of £500,000 from Boru via a subscription of 6,250,000 new ordinary shares of £0.01 each in the Company at a price of £0.08 per share.

Boru is a private investment company which invests in growth companies on a global basis in order to achieve its financial goals. The investment in the Company by Boru will be used to support the expansion of the Company's capabilities and support clients providing personalised care for cancer patients in the UK and Europe.

Hutano Diagnostics Limited ("Hutano")

On 27 September 2023 ("Acquisition Date") the Group acquired the entire issued share capital of Hutano.

The initial consideration was 9,090,909 new ordinary shares of £0.01 each in the Company at a price of £0.11 per share. Up to 1,818,182 additional consideration shares will be issued to the sellers on achievement of certain commercial milestones. The initial consideration shares will rank pari passu in all respects with the existing share capital of the Company. Further details on the acquisition can be found in Note 7.

Rights, preferences, and restrictions

Events after the reporting period

There have been no significant events since the end of the reporting period.