The Advanced Human Imaging Ltd (ASX: AHI) share price is sinking on its first day of trading in nearly 3 weeks. The image capture and dimensioning technology provider, formerly known as MyFiziq, ended its prolonged trading halt this morning with 2 pieces of seemingly positive news.
Despite the good news, the Advanced Human Imaging share price has plunged 5.3% and is swapping hands for $1.94 at the time of writing. An improvement, at least, on the intraday low of $1.85 that it plummeted to in opening trade.
Let's take a closer look at the 2 announcements the company shared this morning.
Image source: Getty Images
Agreements with Triage
Today, Advanced Human Imaging shared news of a binding technology license and a subscription agreement with Canada-based Triage Technologies Inc.
Through the agreements, Advanced Human Imaging will use Triage's dermatological AI system in its CompleteScan product. In return, the Advanced Human Imaging team will improve Triage's AI engine to provide an on-device application for consumers.
According to Triage, its AI program can identify 588 skin conditions, including all skin cancers. The company claims it is more effective in correctly identifying skin conditions than dermatologists.
Triage received a USA patent for its system in 2020 and expects further jurisdictions to follow.
Advanced Human Imaging's CompleteScan is a mobile-based app that analyses photos of a users' skin, face and body to provide a total health assessment.
As part of the agreement, Advanced Human Imaging will pay Triage US$3 million, US$600,000 of which is already paid. Advanced Human Imaging stated that some of these payments are 'at call' and are not binding commitments.
The payments will be spread out over 14 months as, while the company has the funds needed for the initial payments, the remaining payments will be made up of its cash flow or additional capital.
Advanced Human Imaging is also taking a strategic equity stake in Triage.
Letter of intent to acquire Physimax
The second piece of news out of Advanced Human Imaging today is its letter of intent to acquire Israel-based Physimax Technologies Limited.
Advanced Human Imaging has offered to purchase Physimax for US$6 million worth of its own shares. It has also agreed to issue a further US$2 million worth of shares through an earn-out agreement, the terms of which are yet to be released.
Physimax is a musculoskeletal assessment company. It has developed and patented software that tracks and improves musculoskeletal wellness and performance, using videos captured on mobile phones.
The technology does not need wearables. Instead, it measures and scores mobility, stability, strength, and movement control using movement patterns and analysis.
Its assessment is then paired with an AI-delivered, personalised workout program.
Physimax's software is used by healthcare providers, the NFL, NBA, pro-soccer teams and US military units.
Commentary from management
Advanced Human Imaging chair and CEO Vlado Bosanac commented on the agreement with Triage, saying:
By bringing in platforms like personal health/wellness and medical checking application, the addition of Triage not only broadens user/market interest in AHI capability, but also generates better service by combining all these functionalities directly on the smartphone/mobile device.
Mr Bosanac added that Physimax would be a welcome addition to the AHI MultiScan platform.
The Physimax team has spent 7 years developing, validating and commercialising the technology and has seen broad acceptance of the application worldwide with over 250,000 scans performed to date…
We will continue to identify opportunities of this kind that are complementary to the AHI offering, with a view to either a partnership or when advantageous, acquisition.
Advanced Human Imaging share price snapshot
The Advanced Human Imaging share price has bloomed on the ASX recently.
While it got off to a slow start this year, it's currently up by 52% year to date. It's also up a whopping 1,118% over the last 12 months.
The company has a market capitalisation of around $276 million, with approximately 134 million shares outstanding.
