The MyFiziq Ltd (ASX: MYQ) share price is gaining today as the company announced its half-yearly results after the close of trade on Friday.
Shares in the small-cap image capture and dimensioning technology provider are currently trading 2.09% higher, at a price of $1.96.
Strong revenue growth
The MyFiziq share price has shot up over the past month as the company’s revenue surged. For the half-year ending 31 December 2020, revenue rose 150.3% to $887,092.
However, this did not stop the company from slumping to a substantial half-year loss of $5.47 million, up from $2.9 million in 2019. The loss includes extensive share-based payments to suppliers, directors and employees under the company’s incentive plans. In addition, MyFiziq has incurred losses on its investments in various entities.
Regarding the company’s cash flow, net cash used in operating activities reduced from $1.77 million to $1.17 million. This is a $600,000 improvement on last year and was driven by a stable cost base and improvement in its collection of outstanding fees.
The company executed 15 binding agreements with channel partners across the six months. This boosted its cash balance, but it was its $5 million capital raise in October last year that generated meaningful cash. As such, this took the company’s overall balance to $4.7 million.
Strategic investments
MyFiziq’s joint venture partner, Body Composition Technologies (BTC), undertook a $1.92m capital raising during the period. Pouncing on the opportunity, MyFiziq invested $671,000 and now owns the majority stake with 54.5%.
The ASX listed company claims that although BCT has not yet started generating revenue, taking a majority stake provided the strategic advantage of consolidating additional revenue in the future.
Moreover, the company signed an agreement with Canadian-based Triage Technologies in December of last year. The deal will see MyFiziq take a strategic stake in Triage and licence the use of the Triage AI health assistant technology for integration into the company’s CompleteScan SaaS offering.
Under the terms of the agreement, MyFiziq will invest up to US$6 million into Triage, comprising US$3 million in cash and US$3 million in equity.
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- What’s going on with the MyFiziq (ASX:MYQ) share price today?
Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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