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ASX Announcement 25 February 2021 Cogstate Cogstate Limited ABN 80 090 975 723 Level 2 , 255 Bourke Street Melbourne Victoria 3000 Australia P +61 3 9664 1300 F +61 3 9664 1301 W cogstate.com 1H21 Financial Results & Business Outlook ( All figures in US $ ) Cogstate Ltd ( ASX : CGS ) has today released its Appendix 4D – half year report for the six months ended 31 December 2020 ( 1H21 ) . A summary of the 1H21 result is provided below . • Group Revenue increased 59 % on pcp to $ 13.9m in 1H21 * . • • • • • Earnings : PBT of - $ 0.4m ( pcp - $ 3.9m ) and NPAT of - $ 0.4m ( pcp - $ 2.7m ) * . The result included one - off adviser expenses of - $ 0.5m ( pre - tax ) relating to the Global agreement with Eisai . Clinical Trials - Strong result despite ongoing COVID disruptions . Clinical trials revenue was up 52 % on pcp to $ 12.6m , benefitting from the substantial increase in Clinical Sales contracts over the last 18 months . Executed new sales contracts in 1H21 totalled $ 22.6m , lower than a record $ 26.9m in pcp , but a solid result in light of ongoing COVID disruptions in our key offshore markets . Record high revenue backlog in Clinical trials of US $ 49.7m as at 31 December 2021 . Healthcare - landmark partnership with Eisai Eisai will now exclusively distribute Cogstate technology globally ( previously just Japan ) as a digital tool to assess brain - health in Healthcare and other markets ( excludes Clinical Trials ) . Cogstate received an upfront licence fee from Eisai of $ 15m in 2Q21 and will receive minimum Royalty payments of $ 10m over the first 5yrs . A further $ 20m minimum Royalty is payable over yrs 6-10yrs , subject to a termination right Eisai currently has after completion of yr5 . Cash Flow / Balance Sheet : Net cash flow from operations of $ 13.2m ( pcp - $ 1.2m ) . The Company had $ 18.5m net cash as at 31 Dec 20 ( calculated as gross cash less borrowings ) . Contracted future revenue : Following the execution of the global license agreement with Eisai , contracted future revenue has increased to $ 74.8 million , up 96 % on PCP ( approx . $ 12.2m to be recognised in 2H21 ) FY21 outlook : Targeting positive FY21 profit before tax . This assumes new and ongoing Clinical Trials revenue in 2H21 is not materially impacted by COVID . Summary of Results ( All figures are stated in US $ ) Total revenue from ordinary activities - Clinical Trials revenue - Healthcare revenue - Research revenue EBITDA Net Profit Before Tax Net Profit After Tax EPS Net operating cash flow 1H21 US $ 13,856,762 12,577,589 1,149,883 129,290 1H20 * US $ 8,722,068 8,252,878 MOVEMENT US $ 5,134,694 4,324,711 % 59 52 333,081 816,802 245 136,109 ( 6,819 ) ( 5 ) 712,012 ( 392,522 ) ( 2,930,490 ) ( 3,867,688 ) 3,642,502 124 3,475,166 90 ( 448,085 ) ( 2,739,942 ) 2,291,857 84 ( 0.003 ) ( 0.018 ) 0.015 83 83 13,216,098 ( 1,188,202 ) 14,404,300 1,212 * 1H20 numbers have been restated following a review of the application of the Group's accounting policy in respect of revenue relating to the grant of licences , provision of supporting services and the provision of server access , in accordance with the requirements of AASB 15 Revenue from Contracts with Customers ( see explanatory notes and reconciliation table on p.4 of this release ) .