(Alliance News) - IQ-AI Ltd on Friday said trading in the first half of 2020 was hurt by the Covid-19 pandemic but said it expects to see a recovery over the remainder of the year.
Shares in the medical software company were trading 9.0% lower at 4.52 pence each on Friday morning in London. The stock remains up 14% in the year so far.
IQ-AI said pretax loss for the three months ended June 30 was GBP363,529 widened significantly from GBP141,721 recorded the year prior. This was as revenue fell to GBP116,842 from GBP142,375. Administrative expenses were GBP460,165, up from GBP278,278.
The company said its revenue was hurt by the pandemic, due to medical treatments for other conditions being postponed, but it expects a return back to normalcy over the rest of 2020.
IQ-AI added it has taken a major step in disposing of its Stonechecker kidney stone software business to focus on the neuroimaging business of its Imaging Biometrics business. It added that should the sales process be successful, it will receive ongoing royalty on future sales in addition to the cash consideration.
"Whilst the unprecedented shock of the Covid-19 pandemic has understandably preoccupied and distracted our partners and customers, treatment priorities are now beginning to return to normal. The company has entered an exciting phase in its development, and we look forward to updating shareholders as events unfold," said Chief Executive Trevor Brown.
Cash held as at June end was GBP611,363.
By Ife Taiwo; ifetaiwo@alliancenews.com
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Iq-ai Ltd (IQAI)