Here’s why the Resapp (ASX:RAP) share price closed 5% lower

The Resapp (ASX: RAP) share price closed 5% lower today after the company reported a loss in first-half FY21 results. Here’s a closer look.

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The Resapp Health Ltd (ASX: RAP) share price spent today in the red after the company’s 1HY21 results came out this morning.

Apparently, investors weren’t impressed with the results and sent ResApp shares down 5.0% to close at 5.6 cents a share.

The company develops and commercialises its ResApp technology to provide healthcare solutions for respiratory disease. Let’s review the results to decipher what pushed the ResApp share price down for the day.

ResApp Health posts first-half loss

For the period ended 31 December 2020, the healthcare solutions provider reported a net loss of $3.1 million compared to the $3.8 million loss posted for 1HY20.

ResApp’s net asset position was $5.5 million.

At the end of 1HY21, ResApp Health’s cash and cash equivalents totalled $4.2 million, a bump up from $3.9 million at the end of 1HY20.

Revenue totalled $46K and the company received $345,300 in government grants and tax incentives.

ResApp reported a 41 cent loss per share for 1HY21 compared to a 55 cent loss per share for 1HY20.

The company spent $1.7 million during 1HY21 on research and development activities pertaining to its medical technology. During 1HY20, it spent $2.8 million.

New appointment

ResApp also today advised the market that Mike Connell has been appointed as vice president (VP), commercial.

The company said Mr Connell brought extensive experience in sales, marketing and strategy across the industry. 

In his new position, he will process the company’s growth strategy by pursuing a variety of international commercial activities. 

The company believes that Mr Connell’s strong sector understanding and networks will present the business with new opportunities going forward.

During his time with GlaxoSmithKline (GSK),  Mr Connell launched and led GSK’s European Established products business which delivered revenues totalling £3 billion during 2014.

He joins ResApp following time spent as general manager, corporate portfolio with Medibank.

About the ResApp share price

The ResApp share price has had a challenging past 12 months, crashing 74.5% over the period.

The company has a market capitalisation of $44.7 million and there are 758.1 million shares outstanding.

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