cambridge computed imaging

Feedback chairman says cancer software has ‘real potential’ – Proactive Investors

21st November 2016 / Leave a comment

By Ian Lyall – Proactive Investors

Distilled down to the basics, the company’s TexRAD technology is essentially a very smart piece of software that analyses medical images, to reveal features that are not always evident to the human eye.

Dr Alastair Riddell’s CV reveals a high-flying career with the forerunners of what are now GE Healthcare, Johnson & Johnson and Pfizer, followed by spells guiding businesses to IPO or trade sale.

So, what attracted him to the challenge of Feedback plc (LON:FDBK), an AIM-listed medical imaging firm worth less than £4mln?

“The persistence of Tom Charlton, who would not give me any peace until I said yes,” jokes Riddell.

Charlton is one of Feedback’s major shareholders who recruited the company’s new chairman.

However, Riddell’s mind was actually made up by cold hard data that underscored the potential of its main product, TexRAD.

“When I went to Cambridge and spoke to the people who do the work there it became clear there was real potential in this,” he told Proactive Investors.

“What really convinced me was a small study they’d done.”

Before we get to that study, it is worth getting a feel for TexRAD does.

It was the brainchild of the PhD of Dr Balaji Ganeshan, an expert on textural analysis of images gleaned from computed tomography (CT) scans.

Distilled down to the basics, it is essentially a very smart piece of software that analyses medical images, to reveal features that are not always evident to the human eye.

In doing so, it may “in a very statistical, objective and numerical way relate the output to a prognosis for the patient”, says Riddell.

Ganeshan carried out a study of patients with liver cancer using TexRAD and the results were, in the words of the Feedback chairman, “quite remarkable”.

“It quickly dawned on me that this could be a really valuable objective tool for giving an accurate prognosis,” he adds.

Riddell was announced as chairman in June, which hasn’t given him a lot of time to shape strategy.

But he has a good idea how to get the business into the full commercial phase within the next six to nine months.

He has hired a person with experience in the imaging industry to put together a marketing strategy and business plan “which should be sorted in the next few weeks”.

Feedback is already making money from TexRAD with sales to institutions carrying out research.

To fully commercialise the product it must be granted a CE Mark, European certification for the technology.

It hopes to receive the regulatory green light sometime in the first quarter of next year.

This will enable it to sell TexRAD to hospitals, where it will lend numerical support to the very skilled, interpretative work carried out by radiologists.

At that point it will require funds to hire a sales and sales support team, which in turn means Feedback will have to raise a little money to bankroll the expansion of what is currently a very lean team.

Riddell, the consummate City veteran, won’t say when he will call on shareholders, or just how much Feedback requires, but he acknowledges there will be a need to fund growth.

“We will go the market when I think we have a compelling story and we have some numbers for the market,” he says.

“We are not yet at that stage. We are ticking over; investing a little in market analysis and market development that I think will pay off.”

Riddell’s sights are set first and foremost on securing the CE mark. After that he expects to be able to unveil a new product that analyses tumour deposits in the lung.

In this regard it has partnership with a firm called Alliance Medical Group, which wants to integrate TexRAD into its scanners.

Meanwhile, a tie-up with a company in Poland called Future Processing provides Feedback with the coding know-how to develop a wider product suite.

Sales of the current product, though modest, reveal there is demand from a very specialist audience in the research sphere.

It means the technology is being cited in literature by some of the leading centres for cancer research – providing a great endorsement of the TexRAD from key opinion leaders.

In fact, the technology is also starting to make an impression with businesses operating in the field.

“My view is at the moment we are far too small and far too young to be engaged in corporate discussion,” says Riddell.

“But, if we can grow sales the way I hope we can grow them, then in two or three years we might look differently at these corporate approaches.”

In the meantime, it is about “investing in the company and doing things to a particular standard”, the Feedback chairman says.

“Of course, the next milestone will be getting the CE Mark for TexRAD,” he adds.

“This will enable us to market not just to scientists, but radiologists everywhere, which should lead to a marked expansion in sales.”

Full article here

‘Undoubtedly an exciting time for Texrad’ says Feedback Chairman – ProactiveInvestors Stocktube

17th November 2016 / Leave a comment

Feedback plc (FDBK) chairman Alastair Riddell caught up with Proactive’s Andrew Scott to discuss their latest results and outlook for the company.

Feedback (FDBK) – Collaboration with Future Processing

28th July 2016 / Leave a comment

Feedback plc (AIM: FDBK), the medical imaging software company is pleased to announce a large-scale collaboration with Future Processing Sp. z o.o. (“Future Processing”), a software development service provider based in Gliwice, Poland to develop medical imaging software. The collaboration will entail a substantially increased development team working on new products and the sharing of intellectual property and future revenues. This collaboration has resulted from Feedback’s assistance with a successful EU grant application made by Future Processing.

In September 2015, Mike Hayball, CEO of Cambridge Computed Imaging Limited, a wholly owned subsidiary of Feedback, (“CCI”) and Executive Director of Feedback, and Dr Stephen Brown, COO of CCI, began assisting Future Processing with a grant application to develop an innovative quantitative imaging product. The grant application was subsequently successful and has led to a significant expansion of the Future Processing healthcare team. CCI has had a working relationship with Future Processing since 2005.

The directors of Feedback believe that by CCI working jointly with the Future Processing healthcare team, CCI’s existing product portfolio can be improved and new products developed more rapidly including further applications for TexRAD. Although at this stage only a non-binding letter of intent has been agreed, the intention is for the Company to agree formal licences for new software products to be brought to market in 2017/18 under a shared revenue arrangement. In the current financial year, the Company will make substantial savings in software development costs and thereafter expects to benefit from its share of the revenue from sales of the new products.

“This is an exciting opportunity to expand the relationship with Future Processing to build a talented, dynamic team of medical imaging specialists.” said Mike Hayball, CEO of CCI.

“We are excited about this joint project. Together with CCI we will develop medical imaging software and bring innovative solutions to the healthcare sector.” said Jarosław Czaja, CEO of Future Processing.

For further information, contact:

Feedback plc Alastair Riddell / Mike Hayball / Trevor Brown	Tel: 01954 718072
Allenby Capital Limited (Nominated Adviser and Joint Broker) David Worlidge / James Thomas	Tel: 020 3328 5656
Peterhouse Corporate Finance Ltd (Joint Broker) Lucy Williams / Duncan Vasey	Tel: 020 7469 0936

Founded in 2001, CCI specialises in providing software for display, capture and analysis of medical images. Since its foundation, when it focused on supporting the needs of Papworth Hospital, the UK’s largest specialist cardiothoracic hospital, CCI has worked with facilities where its software is used to support diagnosis, plan treatment, measure response and share knowledge within multi-disciplinary teams. From 2011, CCI has worked with TexRAD and has been responsible for developing the innovative quantitative textural analysis platform.

Future Processing is an experienced Polish offshore software development service provider, working mostly with European companies located in the UK and Scandinavia. Since January 2016, it has been a strategic partner of Microsoft. Future Processing currently employs over 700 people and simultaneously runs more than 50 projects. Based in the heart of Upper Silesia, it is at the hub of European software talent, technical expertise and innovation. The new healthcare team consists of experienced scientists and engineers with extensive experience of software development, medical image processing, and machine learning.

Feedback (FDBK) – Interim Results for 6 months ended 30 Nov 2015

22nd February 2016 / Leave a comment

Feedback PLC (FDBK) – Interim Results for the six months ended 30 November 2015

Chairman’s Statement:

We are pleased to present the interim results for the six months ended 30 November 2015. Revenue for the six month period was £225,000 (2014: £229,000) and the loss after tax was £143,000. (2014: loss of £219,000). The loss before interest, tax and amortisation was £132,000 (2014: Loss £138,000). The cash balance as at 30 November 2015 was £164,000, (2014: £268,000).

The interim results show a small reduction in the loss for the period on similar levels of turnover to 2014. Cambridge Computed Imaging Limited again performed steadily as it continued to serve its established customer base. Revenue recognised from TexRAD research version sales in the six months was higher than in the comparable period in 2014, reflecting the contract wins that took place shortly before the end of the previous financial year. Revenue for the second half of the current financial year from TexRAD is also expected to be higher than in the comparable period. In line with management’s expectations, we have sold fewer research versions of TexRAD in recent months although there remains a good deal of customer interest from research institutions who are currently seeking grant funding. The Company has recently signed collaborative agreements with companies in Japan and South Korea to explore further selling opportunities in these markets for TexRAD research versions. The Company has also been looking to provide more support to research customers to assist them in analysing and interpreting the results of their studies. We have recently started work on one such project and this could prove to be a useful additional source of revenue in the future. Dr Balaji Ganeshan has been continuing his work supporting research into new potential applications of TexRAD. This has led to the publication of twelve peer-reviewed papers over the last year as well as a number of presentations at scientific conferences, including the Society of Cardiac MR Annual Scientific Sessions in Los Angeles last month.

In November 2015 the Company announced that it had signed a Memorandum of Understanding with Alliance Medical Group with the intention of integrating Feedback’s TexRAD texture analysis software into Alliance’s PET-CT lung cancer imaging service. The technical discussions have made good progress. A pilot implementation is currently underway and a retrospective study on a sample of studies with known clinical outcomes has shown promising preliminary results. The next stage will be to integrate with Alliance’s internal systems and evaluate our solution with multiple sites across the Alliance network. It is also anticipated that an abstract will be submitted to the Radiological Society of North America (RSNA) for intended publication at its annual conference in November 2016 which will highlight the results from the technical and clinical evaluation. Our development work with Alliance is considered to offer great potential as regards the future commercialisation of TexRAD software. Alliance and Feedback plan to undertake a multi-centre imaging research study to assess the use of TexRAD in lung cancer, with the eventual aim of gaining inclusion of texture analysis in the National Institute for Health and Care Excellence Lung Cancer pathway.

In 2015 the Company formed two joint venture companies, Stone Checker Software Ltd and Prostate Checker Ltd. These companies are at the stage of testing prototype versions of software containing TexRAD plug-ins, firstly on sample data sets and then on larger data sets. Both companies offer the prospect of developing innovative solutions where routine medical images can provide useful additional information for clinicians.

The Board believes the future for Feedback is hugely promising and we look forward to working closely with Alliance and developing our other collaborative ventures. We expect revenue in the second half of the current financial year to be broadly similar to the first half result. Operating expenses have been significantly reduced so when compared to the last financial year, the results for the current financial year are expected to show higher revenue and a reduced operating loss.

Tom Charlton

Chairman

Enquiries:

Feedback plc
Tom Charlton, Trevor Brown, Mike Hayball, Balaji Ganeshan
Tel: 01954 718072

Sanlam Securities UK Limited (Nominated advisor)
Simon Clements / James Thomas
Tel: 020 7628 2200

UNAUDITED INTERIM CONSOLIDATED INCOME STATEMENT
		unaudited	unaudited	audited
		6 months to 30 November 2015	6 months to 30 November 2014	Year to 31 May 2015
		£’000	£’000	£’000


Revenue		225	229	382
Cost of sales		(2)	(42)	(1)

Gross profit		223	187	381


Other operating expenses		(378)	(416)	(889)
Impairment of intangible assets		–	–	(689)


Total operating expenses		(378)	(416)	(1,578)


Operating loss		(155)	(229)	(1,197)
Net finance income		–	–	1


Loss before tax		(155)	(229)	(1,196)


Tax credit		12	10	85

Loss for the period attributable to the equity shareholders of the parent Loss on ordinary activities after tax		(143)	(219)	(1,111)



Other comprehensive expense
Translation differences on overseas operations		–	–	–


Total comprehensive expense for the period		(143)	(219)	(1,111)


Basic and diluted earnings per share	2	(0.07p)	(0.11p)	(0.58p)

UNAUDITED INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	Share Capital	Share Premium	Capital Reserve	Retained Earnings	Translation Reserve	Convertible Debt Option Reserve	Total
	£’000	£’000	£’000	£’000	£’000	£’000	£’000


Balance at 31 May 2014	477	1,409	300	(967)	(210)	189	1,198

Share option and warrant costs	–	–	–	3	–	–	3


Total comprehensive income for the period	–	–	–	(219)	–	–	(219)


Balance at 30 November 2014	477	1,409	300	(1,183)	(210)	189	982


Share option and warrant costs	–	–	–	(1)	–	–	(1)

Total comprehensive expense for the period	–	–	–	(892)	–	–	(892)


Balance at 31 May 2015	477	1,409	300	(2,076)	(210)	189	89

New shares issued	32	190	–	–	–	–	222

Costs associated with the raising of funds	–	(7)	–	–	–	–	(7)

Share option and warrant costs	–	–	–	4	–	–	4

Total comprehensive income for the period	–	–	–	(143)	–	–	(143)


Balance at 30 November 2015	509	1,592	300	(2,215)	(210)	189	165

UNAUDITED INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION
	unaudited		unaudited		audited
	30 November 2015		30 November 2014		31 May 2015
	£’000		£’000		£’000
ASSETS

Non-current assets
Property, plant and equipment	5		6		7
Intangible assets	125		839		140
Investments	5		–		–

	135		845		147

Current assets
Trade receivables	70		160		111
Other receivables	83		73		101
Cash and cash equivalents	164		268		63

	317		501		275

Total assets	452		1,346		422


EQUITY

Capital and reserves attributable to the Company’s equity shareholders
Called up share capital	509		477		477
Share premium account	1,592		1,409		1,409
Capital reserve	300		300		300
Translation reserve	(210)		(210)		(210)
Retained earnings	(2,215)		(1,183)		(2,076)
	(24)		798		(100)
Convertible debt option reserve	189		189		189
Total equity	165		982		89

LIABILITIES

Non-current liabilities
Deferred tax liabilities	24		70		28

Current liabilities
Trade payables	43		81		40
Other payables	220		213		265

	263		294		305

Total liabilities	287		364		333

Net assets	452		1,346		422


UNAUDITED INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
		unaudited		unaudited		audited
		6 months to 30 November 2015		6 months to 30 November 2014		Year to 31 May 2015
		£’000		£’000		£’000

Cash flows from operating activities
Loss before tax		(155)		(229)		(1,196)
Adjustments for:
Share option and warrant costs		4		3		1
Net finance income		–		–		(1)
Depreciation and amortisation		23		91		184
Impairment of intangible assets		–		–		689
Decrease/(increase) in trade receivables		41		(72)		(23)
Decrease in other receivables		26		49		52
Increase/(decrease) in trade payables		3		(145)		(185)
Decrease in other payables		(45)		(217)		(164)

		52		(291)		555

Net cash used in operating activities		(103)		(520)		(642)

Cash flows from investing activities
Purchase of tangible fixed assets		–		(6)		(9)
Purchase of intangible assets		(6)		(80)		(161)
Proceeds from sale of assets held for resale		–		–		1
Purchase of share in joint venture		(5)		–		–

Net cash used in investing activities		(11)		(86)		(169)

Cash flows from financing activities
Net proceeds from share issues		215		–		–

Net cash generated from financing activities		215		–		–


Net increase/(decrease) in cash and cash equivalents		101		(606)		(811)
Cash and cash equivalents at beginning of period		63		874		874

Cash and cash equivalents at end of period		164		268		63

FEEDBACK PLC

NOTES TO THE UNAUDITED INTERIM REPORT

1 BASIS OF PREPARATION

The consolidated interim financial statements have been prepared in accordance with the recognition and measurement principles of International Financial Reporting Standards as endorsed by the European Union (“IFRS”) and expected to be effective at the year end of 31 May 2016. The accounting policies are unchanged from the financial statements for the year ended 31 May 2015.

The information set out in this interim report for the six months ended 30 November 2015 does not comprise statutory accounts within the meaning of section 434 of The Companies Act 2006. The auditors’ report on the full statutory accounts for the period ended 31 May 2015 included an Emphasis of Matter paragraph in regard to Going Concern. The accounts for the period ended 31 May 2015 have been filed with the Registrar of Companies.

This interim report was approved by the directors on 19 February 2016.

2 LOSS PER SHARE

Basic earnings per share is calculated by reference to the loss on ordinary activities after and on the weighted average of shares in issue.

	unaudited	unaudited	audited
	As at 30 November 2015	As at 30 November 2014	As at 31 May 2015
	£’000	£’000	£’000

Net loss attributable to ordinary equity holders	(143)	(219)	(1,111)


	As at 30 November 2015	As at 30 November 2014	As at 31 May 2015
Weighted average number of ordinary shares for basic earnings per share	203,355,562	190,746,746	190,746,746
Effect of dilution:
Share Options	–	–	–
Warrants	–	–	–
Weighted average number of ordinary shares adjusted for the effect of dilution	203,355,562	190,746,746	190,746,746

Loss per share (pence)
Basic and Diluted	(0.07)	(0.11)	(0.58)

3 INTANGIBLE ASSETS

	Software	Customer relationships	Patents	Goodwill	Total
	£’000	£’000	£’000	£’000	£’000
Cost
At 31 May 2014	435	100	41	272	848

Additions	64	–	16	–	80

At 30 November 2014	499	100	57	272	928
Additions	64	–	17	–	81
At 31 May 2015	563	100	74	272	1,009
Additions	–	–	6	–	6
At 30 November 2015	563	100	80	272	1,015

Amortisation

At 31 May 2014	–	–	–	–	–
Charge for the period	73	13	4	–	90

As at 31 November 2014	73	13	4	–	90
Charge for the period	72	12	6	–	90
Impairment charge in the year	418	–	–	272	689
At 31 May 2015	563	25	10	272	869
Charge for the period	–	13	7	–	20
At 30 November 2015	563	38	17	272	890


Net Book Value
At 30 November 2015	–	62	63	–	125

At 31 May 2015	–	75	65	–	140
At 30 November 2014	426	87	53	272	838

4 AVAILABILITY OF THE INTERIM REPORT

Copies of the report will be available from the Company’s office and also from the Company’s website www.fbk.com

Feedback PLC – Announces final results & appoints Dr Balaji Ganeshan & Mike Hayball to the board

6th November 2015 / Leave a comment

Feedback plc is pleased to announce its final results for the year ended 31 May 2015.

CHAIRMAN’S STATEMENT

We are pleased to present the results for the year ended 31 May 2015. These are the first full year results to include the trading of the two medical imaging companies, Cambridge Computed Imaging Limited (‘CCI’) and TexRAD Limited, (‘TexRAD’) both of which we acquired in May 2014. Revenue for the year was £381,970 (2014: £7,250) and the loss after tax was £1,111,433 following the write down of intangible assets of £689,142 (2014: Loss £470,654). The Directors have considered it prudent to write down the carrying value of the intangible assets in the balance sheet in order to meet the requirements of IFRS. However, the Directors still believe the Company’s technology has great potential which will generate ongoing revenue and attract new collaboration partners. Cash as at 31 May 2015 was £63,261 (31 May 2014: £874,432) ahead of the placing announced on 3 June 2015 which raised £200,000. Cash balances at 31 October 2015 stood at £210,076.

The early part of the period saw the bedding in of the acquisitions with a focus on establishing the quality process and serving the existing customer base. CCI’s business was a steady performer attaining ISO 13485, the international standard relating to quality management systems for organisations involved in the manufacture of medical devices as well as adding further resource to the regulatory team. CCI provides all the regulatory, technical and development support to TexRAD while maintaining its principal business of supporting Papworth Hospital, Cambridgeshire with its PACS (Picture Archiving and Communication System). TexRAD, our texture analysis software product for analysing images from CT scans, was granted a European patent thus extending its portfolio of protected intellectual property.

There has been a focus on developing strategic collaborations for TexRAD while continuing the sales of research versions to world-leading research institutions. During the year, TexRAD has been purchased by institutions including ELK in Berlin, Velindre Cancer Centre in Cardiff, University of Tokyo Department of Radiology at the Institute of Medical Science in Japan, CHU de Reims in France and Seoul National University Bundang Hospital in South Korea, among others. The company was also delighted to announce on 9 September 2015 that TexRAD had completed its first sale to China with an installation at Peking University Medical College Hospital, Beijing. We have also worked closely with leading research groups with a view to commercialising TexRAD for specific applications. Since the year end and following the highly encouraging early results from a retrospective study into TexRAD’s potential use in the treatment of urolithiasis (formation of kidney stones), the Company formed a joint venture company, Stone Checker Software Ltd (‘Stone Checker’). Stone Checker will use our intellectual property in conjunction with other biomarkers to develop an integrated product to assist clinicians to determine which stones are most likely to respond to shock wave lithotripsy. We have, in the new financial year, formed another joint venture company, Prostate Checker Ltd to target a more effective method of diagnosing and assessing treatment options for prostate cancer.

Our collaborations with leading medical institutions are progressing well. Professor Ken Miles at the Diagnostic Radiology department at the Princess Alexandra Hospital in Brisbane, Australia has been doing valuable work in examining TexRAD’s potential for inclusion in radiology workflow, particularly in assisting treatment decisions and improving patient management in lung cancer. Professor Choi at the University of Texas MD Anderson Cancer Center in Houston, Texas, USA will be assessing TexRAD’s effectiveness for patients with kidney and adrenal cancers. Dr. Andrew Smith’s work on metastatic kidney cell cancer at the University of Mississippi Medical Center in Jackson, Mississippi, USA using TexRAD has been presented at the annual meeting of the Society of Computed Body Tomography and Magnetic Resonance in Toronto, Canada. McGill University Hospital in Montreal, Quebec, Canada will be focussing on breast cancer and appraising TexRAD’s use as a supplementary tool in digital mammography to achieve better patient management.

We continue to work with Imaging Endpoints II, LLC to serve the clinical trials market in the United States. We have recently delivered the latest version of our TexRAD clinical trials software with extra features and we are now working towards achieving 21 CFR Part 11 compliance. The last year has seen strong competition in the clinical trials market to win the available business from pharmaceutical companies. Nevertheless TexRAD is expected to be used in a study of colorectal cancer patients (stage IIIc) being treated with Bayer’s drug Regorafenib after adjuvant FOLFOX. Having re-evaluated the Company’s previous strategy for seeking FDA approval for TexRAD, the board now recognise that there are significant commercial opportunities available to Feedback if TexRAD were to be used in conjunction with other biomarkers to create integrated products for specific clinical applications. These products could then be marketed much more effectively to clinicians compared with a general software application. We may also prioritise CE marking in order to accelerate development of commercial products for the European markets. As a consequence of this new focus, FDA approval for TexRAD is no longer regarded as one of the Company’s principal corporate objectives.

Board Reorganisation

The Company today announces a reorganisation of the board of directors with immediate effect. Simon Barrell steps down from the Board to devote more time to his other business commitments. Tom Charlton becomes non-executive chairman and we welcome two of the senior management team, Dr Balaji Ganeshan and Mike Hayball to the plc board. In addition we are delighted to announce the appointment of Dr Alex Menys as a non-executive director. Dr Menys is a researcher at University College London and chief executive of Motilent Ltd, a developer of advanced medical imaging software aimed at maximising the effectiveness of radiology in the evaluation of gastrointestinal function.

We are very encouraged by the continued interest shown in TexRAD and the number of research papers being published which highlight its numerous potential applications. In order to generate optimum value for shareholders we shall be looking to support our collaboration partners and invest further in our newly-formed joint venture companies. The year ahead will also see the Company selling fewer research versions of TexRAD as we focus on setting up more joint venture companies and collaborations targeting specific applications for TexRAD’s clinical use to provide the foundation for TexRAD’s future commercial success.

Tom Charlton

Chairman

5 November 2015

For further information contact:

Feedback plc	Tel: 01954 718072
Tom Charlton/ Trevor Brown
Sanlam Securities UK (Nominated Adviser and Joint Broker)	Tel: 020 7628 2200
Simon Clements / James Thomas
Peterhouse Corporate Finance Ltd (Joint Broker)	Tel: 020 7469 0936
Lucy Williams / Duncan Vasey

Notes to editors:

TexRAD (is a novel sophisticated imaging risk stratification research tool that analyses the textures in existing radiological scans. This research software application analyses textures, detecting and measuring tumour heterogeneity (complexity) from these images, revealing more information from medical images than it is currently possible to see with the naked eye. Research to date has shown that TexRAD could potentially assist the clinician (as an ‘Imaging Biomarker’) in confident decision-making: assessing the prognosis, disease severity (e.g. risk of metastases) and response evaluation of patients with cancer. Currently TexRAD research has shown great potential in many different oncological sites, including, colorectal, breast, lung, prostate, oesophageal, head & neck, lymphoma, liver and renal cancers and could potentially be employed as a heterogeneity assessing tool in the era of ‘Precision and Personalized Medicine’. TexRAD is manufactured under licence by the ISO 13485 certified company Cambridge Computed Imaging Ltd, a subsidiary of Feedback plc. More information is available on www.fbk.com and www.texrad.com.

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MAY 2015

	Note	2015	2014
		£	£


REVENUE		381,970	7,250

Cost of sales		(1,434)	–

GROSS PROFIT		380,536	7,250

Other operating expenses		(888,600)	(313,904)
Costs associated with the acquisition of subsidiaries		–	(164,000)
Impairment of intangible assets	7	(689,142)	–

Total operating expenses		(1,577,742)	(477,904)

OPERATING LOSS		(1,197,206)	(470,654)

Net finance income		908	–

Loss on ordinary activities before taxation		(1,196,298)	(470,654)

Tax credit		84,865	–

LOSS ON ORDINARY ACTIVITIES AFTER TAX		(1,111,433)	(470,654)


Loss for the year attributable to the equity Shareholders of the Company		(1,111,433)	(470,654)

Other comprehensive income/(expense)
Translation differences on overseas operations		108	(3,104)

Total comprehensive expense for the year		(1,111,325)	(473,758)


LOSS PER SHARE (pence)

Basic and diluted	4	(0.58)	(0.35)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MAY 2015

GROUP	Share Capital	Share Premium	Capital Reserve	Retained Earnings	Translation Reserve	Convertible Debt Option Reserve	Total
	£	£	£	£	£	£	£


At 1 June 2013	327,367	851,334	299,900	(509,413)	(207,000)	–	762,188

New shares issued	149,500	598,000	–	–	–	–	747,500

Costs associated with the raising of funds	–	(40,000)	–	–	–	–	(40,000)

Share option and warrant costs	–	–	–	13,728	–	–	13,728

Convertible debt raised in the year	–	–	–	–	–	189,000	189,000

Total comprehensive expense for the year	–	–	–	(470,654)	(3,104)	–	(473,758)

At 31 May 2014	476,867	1,409,334	299,900	(966,339)	(210,104)	189,000	1,198,658

Share option and warrant costs	–	–	–	1,289	–	–	1,289

Total comprehensive expense for the year	–	–	–	(1,111,433)	108	–	(1,111,325)

At 31 May 2015	476,867	1,409,334	299,900	(2,076,483)	(209,996)	189,000	88,622

CONSOLIDATED BALANCE SHEET AT 31 MAY 2015

		2015	2014
	Notes	£	£
ASSETS
Non-current assets
Property, plant and equipment	6	6,915	1,444
Intangible assets	7	139,558	848,000
		146,473	849,444
Current assets
Trade receivables		110,870	87,610
Other receivables	8	101,259	120,879
Cash and cash equivalents		63,261	874,432
		275,390	1,082,921

Total assets		421,863	1,932,365


EQUITY
Capital and reserves attributable to the Company’s equity shareholders
Called up share capital	10	476,867	476,867
Share premium account		1,409,334	1,409,334
Capital reserve		299,900	299,900
Translation reserve		(209,996)	(210,104)
Retained earnings		(2,076,483)	(966,339)
		(100,378)	1,009,658

Convertible debt option reserve		189,000	189,000

TOTAL EQUITY		88,622	1,198,658

LIABILITIES
Deferred tax liabilities		27,911	80,000
		27,911	80,000
Current liabilities
Trade payables		40,368	225,157
Other payables	9	264,962	428,550

		305,330	653,707

Total liabilities		333,241	733,707

TOTAL EQUITY AND LIABILITIES		421,863	1,932,365

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MAY 2015

	2015	2014
	£	£

Cash flows from operating activities
Loss before tax	(1,196,298)	(470,654)
Adjustments for:
Share option costs	1,289	173
Cost of acquisition of subsidiaries	–	164,000
Net finance income	(908)	–
Depreciation and amortisation	184,170	–
Impairment of intangible assets	689,142	–
Foreign exchange difference	108	3,104
(Increase)/decrease in trade receivables	(23,260)	–
Decrease/(increase) in other receivables	52,396	(79,725)
(Increase)/decrease in trade payables	(184,789)	56,436
(Decrease) in other payables	(163,588)	(155,039)

	554,560	(11,051)

Net cash used in operating activities	(641,738)	(481,705)

Cash flows from investing activities
Purchase of tangible fixed assets	(9,329)	–
Purchase of intangible assets	(161,012)	–
Net finance income received	908	–
Proceeds from sale of assets held for resale	–	940,000
Cash received on purchase of subsidiaries	–	65,045
Cash paid on acquisition of subsidiaries	–	(31,400)
Cash on acquisition of subsidiaries including costs	–	(164,000)

Net (used by)/cash generated from investing activities	(169,433)	809,645

Cash flows from financing activities
Loan repayment	–	(245,000)
Equity based loan received	–	189,000
Net proceeds of share issue	–	260,000

Net cash generated from financing activities	–	204,000

Net (decrease)/ increase in cash and cash equivalents	(811,171)	531,940
Cash and cash equivalents at beginning of year	874,432	342,492

Cash and cash equivalents at end of year	63,261	874,432

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2015

1. General information

On 19 May 2014 the Company acquired two subsidiaries in the medical imaging sector, Cambridge Computed Imaging Limited and TexRAD Limited.

The Company is a public limited company domiciled in the United Kingdom and incorporated under registered number 00598696 in England and Wales. The Company’s registered office is Grange Park, Broadway, Bourn, Cambridgeshire, CB23 2TA.

The Company is listed on AIM of the London Stock Exchange. These Financial Statements were authorised for issue by the Board of Directors on the 5 November 2015.

2. Adoption of new and revised International Financial Reporting Standards

No new International Financial Reporting Standards (“IFRS”), amendments or interpretations became effective in 2015 which had a material effect on this financial information.

At the date of approval of this financial information, the following IFRS Standards and Interpretations, which have not been applied in these Financial Statements, were in issue but not yet effective. These new Standards, Amendments and Interpretations are those in issue but not yet effective which are expected to apply to the Group and are effective for accounting periods beginning on or after the dates shown below:

IFRS Standards and Interpretations issued (and EU adopted) but not yet effective:

IFRS 9 Financial Instruments (effective periods beginning 1 January 2018)
IFRS 15 Revenue from Contracts with Customers (effective periods beginning 1 January 2018)

The Group has not early adopted these amended standards and interpretations. The Directors do not anticipate that the adoption of these standards and interpretations will have a material impact on the reported results.

3. SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of preparation

These financial statements have been prepared in accordance with those IFRS standards and IFRIC interpretations issued and effective or issued and early adopted as at the time of preparing these statements. The policies set out below have been consistently applied to all the years presented.

No separate income statement is presented for the parent Company as provided by Section 408, Companies Act 2006.

(b) Basis of consolidation

The Group financial statements consolidate the financial statements of Feedback plc and its subsidiaries (the “Group”) for the years ended 31 May 2014 and 2015 using the acquisition method.

The financial statements of subsidiaries are prepared for the same reporting year as the parent company, using consistent accounting policies. All inter-company balances and transactions, including unrealised profits arising from them, are eliminated. Subsidiaries are fully consolidated from the date on which control is transferred to the Group and cease to be consolidated from the date on which control is transferred out of the Group.

(c) Going Concern

The Directors have produced forecasts which show that the Group and Company have adequate cash resources for at least the next twelve months from the date of this report and the Directors believe the Group could obtain further equity finance from the financial markets to support its re-evaluated corporate strategy, if required. The Directors believe that the company is a going concern and have therefore prepared the financial statements on a going concern basis.

4. LOSS PER SHARE

. Basic earnings per share is calculated by reference to the loss on ordinary activities after taxation of £1,111,433 (2014: £470,654) and on the weighted average of 190,746,746 (2014: 132,912,773) shares in issue.

	As at 31 May 2015	As at 31 May 2014
	£’000	£’000

Net loss attributable to ordinary equity holders	(1,111,433)	(470,654)

	As at 31 May 2015	As at 31 May 2014
Weighted average number of ordinary shares for basic earnings per share	190,746,746	132,912,773
Effect of dilution:
Share Options	–	–
Warrants	–	–
Weighted average number of ordinary shares adjusted for the effect of dilution	190,746,746	132,912,773

Loss per share (pence)
Basic	(0.58)	(0.35)
Diluted	(0.58)	(0.35)

There is no dilutive effect of the share options and warrants as the dilution would be negative.

5. INVESTMENTS

			Total
			£
COMPANY – Shares in Group undertakings

Cost

At 1 June 2013			1,867,000
Additions			467,455

At 31 May 2014			2,334,455

As at 31 May 2015			2,334,455

Provisions
At 1 June 2012			1,867,000
Provided in the year			–

At 31 May 2013			1,867,000

Provided in the year			–
At 31 May 2014			1,867,000
Provided in the year			467,455
At 31 May 2015			2,334,455


Net Book Value
At 31 May 2015			–
At 31 May 2014			467,455

At 31 May 2013			–

All of the above investments are unlisted.

Following the prudent write down of the intangible assets under the requirements of IFRS in the subsidiaries, the subsidiaries’ financial statements show that they have net liabilities. The directors have made full provision against the cost of investment in the subsidiaries due to the net liabilities shown in the subsidiary financial statements.

Particulars of principal subsidiary companies during the year, all the shares of which being beneficially held by Feedback PLC, were as follows:

Company	Activity	Country of and incorporation operation	Proportion of Shares held

Feedback Black Box Company Limited	Non trading	England	100% Ordinary £1

Feedback Data GmbH	Non trading (liquidated October 2015)	Germany	100% Specific capital

Brickshield Limited	Non trading	England	100% Ordinary £1

Cambridge Computed Imaging Limited	Medical Imaging	England	100% A Ordinary £1
			100% B Ordinary 1p

TexRAD Limited	Medical Imaging	England	100% Ordinary 1p

TexRAD Limited is owned 100% by virtue of a direct holding by Feedback plc of 91% and an indirect holding via Cambridge Computed Imaging Limited of 9%.

Feedback Data GmbH is a subsidiary of Feedback plc following the transfer of ownership from Feedback Data plc on 31 May 2013. The company was liquidated in October 2015.

All the subsidiary companies have been included in these consolidated financial statements.

2014 Acquisitions

Acquisition of Cambridge Computed Imaging Limited and TexRAD Limited in May 2014.

	Cambridge Computed Imaging Limited	TexRAD Limited	Total	Fair value adjustments	Fair Value of assets acquired
	£	£	£	£	£
Intangible assets	114,972	41,479	156,451	400,000	556,451
Tangible assets	1,444	–	1,444	–	1,444
	116,416	41,479	157,895	400,000	557,895
Current assets
Debtors	31,658	91,600	123,258	–	123,258
Cash	29,290	35,755	65,045	–	65,045
Deferred tax	–	–	–	(80,000)	(80,000)
Net liabilities	(260,559)	(209,598)	(470,157)	–	(470,157)
	(83,194)	(40,764)	(123,959)	320,000	196,041

Cost of acquisition
Issue of shares	200,000	227,501	427,501	–	427,501
Cash consideration	13,200	13,200	26,400	–	26,400
Issue of warrants	–	13,555	13,555	–	13,555
	213,200	254,256	467,456		467,456

Goodwill arising on consolidation representing intangible assets not qualifying for separable recognition.					271,415

The costs related to the acquisitions of £164,000 were recognised as part of the administration costs, although shown separately, in the statement of comprehensive income in the year to 31 May 2014. The subsidiaries contributed £7,000 of revenue to the group and no profit or loss in the period since acquisition.

In 2014, had the subsidiaries been part of the Group for the full year from 1 June 2013, Group revenue would have been £364,000 and Group loss would have been £471,000 for the year ended 31 May 2014.

None of the goodwill arising on consolidation is tax deductible.

6. PROPERTY, PLANT AND EQUIPMENT

	Plant and
	Equipment	Total
GROUP	£	£

Cost of valuation
At 31 May 2013	–	–

Acquired with subsidiary undertakings	1,444	1,444

At 31 May 2014	1,444	1,444
Additions	9,329	9,329

As 31 May 2015	10,773	10,773


Depreciation
At 31 May 2013	–	–

Charge for the year	–	–

At 31 May 2014	–	–

Charge for the year	3,858	3,858

At 31 May 2015	3,858	3,858

Net Book Value
At 31 May 2015	6,195	6,195

At 31 May 2014	1,444	1,444

At 31 May 2013	–	–

7. INTANGIBLE ASSETS

	Software	Customer relationships	Patents	Goodwill	Total
GROUP	£	£	£	£	£
Cost
At 31 May 2013	–	–	–	–	–
Additions	20,000	–	–	–	20,000
Acquired with subsidiary	415,000	100,000	41,585	271,415	828,000
At 31 May 2014	435,000	100,000	41,585	271,415	848,000
Additions	128,099	–	32,913	–	161,012

At 31 May 2015	563,099	100,000	74,498	271,415	1,009,012

Amortisation
At 31 May 2013	–	–	–	–	–
Charge for the year	–	–	–	–	–

At 31 May 2014	–	–	–	–	–
Charge for the year	145,372	25,000	9,940	–	180,312
Impairment charge in the year	417,727	–	–	271,415	689,142

At 31 May 2015	563,099	25,000	9,940	271,415	869,454

Net Book Value
At 31 May 2015	–	75,000	64,558	–	139,558

At 31 May 2014	435,000	100,000	41,585	271,415	848,000

At 31 May 2013	–	–	–	–	–

In accordance with the accounting policies and IFRS the Directors have assessed the carrying value of the intangible assets. Following their assessment the Directors have taken the prudent decision to write down the carrying value of some of the intangible assets in the balance sheet in order to meet the requirements of IFRS. However the Directors believe the Group’s technology has great potential and this write down does not reflect their commercial assessment of the value of the company’s intellectual property. Future expenditure on software development will be capitalised once the provisions of IAS 38 are met or written off as incurred until the provisions are met. The customer lists and patents are deemed to have ongoing value to the group.

8. OTHER RECEIVABLES

	Group		Company
	2015	2014	2015	2014
	£	£	£	£
Amounts falling due within one year
Amounts owing by subsidiary undertakings	–	–	16,909	209,000
Other receivables	14,290	94,638	5,699	78,350
Corporation tax recoverable	32,775	–	–	–
Prepayments	54,194	26,241	30,385	16,555

	101,259	120,879	52,993	303,905

Amounts of £356,991 due from the subsidiaries to Feedback plc have been provided for following the write down of the intangible assets under the requirements of IAS 36 the Directors have made a provision against the amounts due from the subsidiaries to reflect the impairment in the Feedback plc balance sheet.

9. OTHER PAYABLES

	Group		Company
	2015	2014	2015	2014
	£	£	£	£
Amounts falling due within one year
Other payables	9,396	195,743	16	6,003
Other taxes and social security	33,047	12,711	16,418	5,029
Accruals	28,701	48,666	18,024	20,755
Deferred income	193,818	171,430	–	–

	264,962	428,550	34,458	31,787

In 2014 comparatives included in other payables is an amount of £189,000 due to T Charlton. Mr Charlton had a debt due by Cambridge Computed Imaging Limited to Panvista Limited assigned to him. For further detail see note 23.

10. SHARE CAPITAL AND RESERVES

	2015	2014

	£	£
Authorised and issued share capital
Ordinary shares of 0.25 pence each	476,867	476,867

Allotted, called up and fully paid share capital:
	Number	Number
As at 1 June 2014	190,746,746	190,746,746

As at 31 May 2015	190,746,746	190,746,746

Share Options

Share options are granted to Directors and employees. Options are conditional on the employee completing a specific length of service (the vesting period). The options are exercisable from the end of the vesting period and lapse after ten years after the grant date. The Group has no legal or constructive obligation to repurchase or settle the options in cash.

Share options are valued using the Black-Scholes option pricing model and no performance conditions are included in the fair value calculations. The risk free rate was 1.64%. The expected volatility is based on historical volatility over the last two years and is estimated to be 25%. The average share price during the year was 0.85 pence. During the year the Company had the following share options in issue:

Number of options
At 1 June 2014	Granted	Cancelled	At 31 May 2015	Exercise price (pence)	Exercise date

4,000,000	–	4,000,000	–	1.25	21/05/14 to19/05/24
5,800,000	–	1,000,000	4,800,000	1.25	21/05/14 to19/05/24
4,000,000	–	–	4,000,000	3.00	21/05/15 to19/05/24
4,000,000	–	–	4,000,000	5.00	21/05/15 to19/05/24

17,800,000		5,000,000	12,800,000

All share options vest one year after the grant date. Each option can only be exercised from one year after the grant date to ten years after the date of grant.

In June 2015 1,600,000 options were exercised at a price of 1.25p

Warrants

Warrants were issued to the vendors of TexRAD Limited at the time of acquisition. The warrants are exercisable from the end of the vesting period and lapse ten years after the grant date. The Group has no legal or constructive obligation to repurchase or settle the warrants in cash.

Warrants are valued using the Black-Scholes pricing model and no performance conditions are included in the fair value calculations. The risk free rate was 1.64%. The expected volatility is based on historical volatility over the last two years and is estimated to be 25%. The average share price during the year was 0.85 pence. During the year the Company had in existence the following warrants:

Number of warrants
At 1 June 2014	Granted	Cancelled	At 31 May 2015	Exercise price (pence)	Exercise date

4,550,000	–	–	4,550,000	1.25	19/05/16 to 19/05/24
18,200,000	–	–	18,200,000	3.00	19/05/17 to 19/05/24
22,750,000	–	–	22,750,000

Reserves

The nature and purpose of each reserve within equity is as follows:

Share premium	Amount subscribed for share capital in excess of nominal value
Capital reserve	Reserve on consolidation of subsidiaries
Translation reserve	Gains and losses on the translation of overseas operations into GBP
Retained earnings	All other net gains and losses and transactions with owners not recognised elsewhere
Convertible debt option reserve	Amount of proceeds on issue of convertible debt relating to the equity component of the debt

11. NOTICE OF ANNUAL GENERAL MEETING (“AGM”) AND AVAILABILITY OF REPORT AND ACCOUNTS

The Company hereby announces that its AGM will be held at the offices of Sanlam Securities UK Limited, 10 King William Street, London EC4N 7TW at 2.00 p.m. on 30 November 2015.

The Company’s final report and accounts and notice of AGM will be posted to shareholders shortly and are available at the Company’s registered office, Unit 5 Grange Park, Broadway, Bourn, Cambridgeshire CB23 2TA and on its website: www.fbk.com

This information is provided by RNS

The company news service from the London Stock Exchange

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