VR1
Vection Technologies LTD
ASX
Massachusetts General Hospital trials Algho AI
Sentiment:
Trial Announcement
16 December 2024 6:30 PM
Vection Technologies' Algho AI, a 3D virtual assistant named Katherine, has moved into a full-scale trial at Massachusetts General Hospital, marking a significant step in AI healthcare integration.
Summary
- Vection Technologies' Algho AI, embodied by the 3D avatar Katherine, has progressed to a full-scale trial at Massachusetts General Hospital (MGH) after an initial implementation phase.
- MGH has renewed its license agreement for approximately $160,000 per year, which includes a provisional license for the first six months.
- The agreement also includes a scalable usage-based cost of about $0.26 per conversation, allowing for potential revenue growth as adoption increases.
- The trial is expected to run from February to July, with full integration planned for August 2025.
- Katherine is designed to streamline patient data collection and care planning within MGH's Raising Healthy Hearts program.
- The program aims to prevent cardiovascular diseases in children by identifying risk factors early and personalizing interventions.
- The trial aims to expand Katherine's deployment across MGH's facilities over the next 12 months.
- The pricing model combines a base annual license fee with usage-based costs, making it a scalable solution for multiple hospitals and therapeutic areas.
- The technology has potential applications beyond paediatric cardiology, including endocrinology and mental health.
Sentiment
Score: 8
Explanation: The document is very positive, highlighting a significant milestone with a major hospital, a scalable pricing model, and potential for future growth. The tone is optimistic and forward-looking.
Positives
- The full-scale trial at MGH validates the potential of Algho AI in a real-world healthcare setting.
- The scalable per-conversation pricing model allows for significant revenue growth as adoption increases.
- Katherine's integration into the Raising Healthy Hearts program enhances operational efficiency and patient care.
- The technology has potential for expansion into other therapeutic areas beyond paediatric cardiology.
- The partnership with MGH demonstrates Vection's ability to secure strategic agreements in the U.S.
Risks
- The success of the trial and full-scale integration is dependent on the technology performing as expected.
- The adoption rate of the technology may vary, impacting revenue projections.
- There are risks associated with the integration of new technology into existing healthcare workflows.
- The company is reliant on the success of the MGH trial to expand into other hospitals and therapeutic areas.
Future Outlook
The document highlights the potential for significant revenue growth through the scalable per-conversation pricing model and the expansion of Algho AI into other therapeutic areas and hospitals. The company anticipates the successful completion of the trial and full integration of the technology at MGH.
Management Comments
- Gianmarco Biagi, Managing Director of Vection Technologies, stated that the trial of Katherine at Massachusetts General Hospital is a significant milestone showcasing the innovative capabilities of Algho AI.
- Dr. Oscar Benavidez, Chief of Paediatric Cardiology at Massachusetts General Hospital for Children, said that the collaboration demonstrates the transformative potential of Algho AI in revolutionising healthcare delivery.
Industry Context
This announcement reflects the growing trend of integrating AI and virtual assistants into healthcare to improve efficiency, patient care, and data management. The use of a 'Hub & Spoke' model is also a growing trend in healthcare delivery.
Comparison to Industry Standards
- The use of AI-powered virtual assistants in healthcare is becoming more common, with companies like Babylon Health and Ada Health offering similar solutions, though not necessarily in a 3D avatar format.
- The pricing model of a base license fee plus usage-based costs is a common approach in the SaaS industry, but the specific cost of $0.26 per conversation is unique to this offering.
- The focus on paediatric cardiology and the 'Raising Healthy Hearts' program is a specific niche, differentiating it from broader AI healthcare solutions.
- MGH's research budget of $1.98 billion AUD highlights the scale of the hospital and the potential for significant impact from the trial.
Next Steps
- Complete the full-scale trial of Algho AI at MGH between February and July 2025.
- Achieve full integration of Algho AI at MGH by August 2025.
- Expand the deployment of Algho AI across MGH's facilities over the next 12 months.
- Explore opportunities to expand Algho AI into other therapeutic areas such as endocrinology and mental health.
- Finalize the acquisition of The Digital Box S.p.A. in early January 2025.
Key Dates
- 29 August 2024: Vection announced the proposed acquisition of Algho AI's creator, The Digital Box S.p.A.
- 17 December 2024: Date of the ASX release announcing the full-scale trial of Algho AI at MGH.
- Early January 2025: Expected finalization of the acquisition of The Digital Box S.p.A.
- February to July 2025: Expected timeline for completing the trial of Algho AI at MGH.
- August 2025: Scheduled integration of Algho AI at MGH.
Keywords
Algho AI, Massachusetts General Hospital, virtual assistant, healthcare, artificial intelligence, paediatric cardiology, integratedXR, Katherine, scalable, trial, revenue, digital health
VR1
Vection Technologies LTD
ASX
Sector: Software & Services
Filings with Classifications
Better than expected
29 June 2025 7:19 PM
Defence Contract Award
- The $4.4 million follow-on supply confirms a successful transition from a proof-of-concept pilot to production delivery, indicating strong client satisfaction and product viability.
- The cumulative revenue from this customer has reached approximately $10 million, demonstrating significant and growing engagement with a top-tier defence contractor.
- The planned approximately $21 million in additional contracted options for FY26-FY30 signals substantial future revenue potential and long-term partnership with a key client.
Better than expected
22 June 2025 7:26 PM
Contract Signing Announcement
- The company secured a significant $2.6 million agreement, which substantially exceeds its $500,000 materiality threshold, indicating a strong new contract win.
Better than expected
16 June 2025 6:53 PM
Strategic Partnership Announcement
- The $520,000 agreement exceeds the company's internal materiality threshold of $500,000, indicating a significant contract.
- The partnership targets high-growth markets, with agricultural robotics projected to reach $48 billion by 2030 and precision farming $24 billion by 2030.
- The modular platform architecture allows for cross-sector deployment, expanding the addressable market beyond agriculture.
Better than expected
9 June 2025 8:01 PM
Investor Presentation
- The company reported a 60% increase in 1H25 revenues year-on-year, indicating strong top-line growth.
- Recurring revenue grew by an impressive 204% year-on-year, demonstrating a shift towards a more stable and predictable revenue model.
- Vection achieved positive adjusted EBITDA in 1H25, a significant improvement from a negative EBITDA in the previous fiscal year, signaling enhanced profitability.
Better than expected
9 June 2025 6:37 PM
Product Launch and Strategic Partnership Announcement
- The launch on AWS Marketplace provides a significant strategic partnership and market reach that is better than a standalone product launch.
- The initial contracted annual recurring revenue of $400,000 from early implementations indicates strong immediate commercial traction.
- The solution addresses a large and growing market opportunity, with the global assistive technology market projected to reach $54.9 billion by 2033.
Better than expected
1 June 2025 6:22 PM
Contract Award Announcement
- The A$1 million defence order exceeds the company's A$500,000 materiality threshold, indicating a significant win.
- The order reinforces an ongoing relationship with a strategic customer, suggesting strong client satisfaction and potential for repeat business.
- The client has already indicated additional significant opportunities, pointing to a robust future pipeline.
Better than expected
28 April 2025 7:30 PM
Placement Announcement
- The company raised more capital than initially targeted, indicating strong investor demand.
Better than expected
27 April 2025 8:02 PM
FY25 Q3 Activity Report
- The company reported positive operational cash flow, a significant improvement from previous quarters.
- Recurring revenue increased substantially, indicating a more stable and predictable revenue stream.
- The company's cash position improved, providing greater financial flexibility.
Capital raise
27 April 2025 7:43 PM
Trading Halt Request
- Vection Technologies is planning a capital raising.
- The capital raising is to support the expansion of its AI business.
- The capital raising is to support the development of new markets.
Capital raise
27 February 2025 9:41 PM
Half-year report
- In FY25 Vection announced the proposed acquisition of The Digital Box ('TDB'), a generative AI specialist, in tandem with a $2m equity raising (ASX: 29 August 2024).
- On 5 September 2024, the Company issued 200,000,000 of ordinary fully paid shares at $0.10 ($2m placement as per announced of 29 August 2024).
Better than expected
27 February 2025 9:41 PM
Half Year Results
- The company's revenue increased by 15% compared to the previous period.
- The company reduced its total debt by $5.4 million.
- Earnings per share improved by 63%.
Better than expected
27 February 2025 9:41 PM
Half-year report
- The company's revenue increased by 14.9% compared to the previous period.
- The loss after tax decreased by 58.7% compared to the previous period.
- Underlying EBITDA turned positive, indicating improved operational efficiency.
Better than expected
27 January 2025 4:33 PM
Quarterly Report
- The company achieved a positive operating net cash flow in a historically weak quarter, which is better than expected.
- The company's revenue growth of 60% half-on-half is significantly better than previous periods.
- The increase in recurring revenue to 34% is a positive sign of business model improvement.
Better than expected
21 January 2025 4:22 PM
Sales Announcement
- The company has exceeded its materiality threshold of $0.5m in revenue with these new sales.
Capital raise
16 January 2025 4:23 PM
Merger Announcement
- Vection issued approximately 143 million new shares as part of the initial consideration for the acquisition.
- Up to 52 million further shares may be issued subject to TDB meeting agreed sales, EBITDA, and balance sheet objectives one year post-acquisition.
Better than expected
8 December 2024 5:35 PM
Contract Wins Announcement
- Vection Technologies secured new contracts exceeding $500,000, surpassing their defined materiality threshold.
Capital raise
28 November 2024 4:19 PM
Annual General Meeting Results
- Resolution 4 approved the issuance of shares to Mr. Jacopo Merli.
Better than expected
24 November 2024 4:19 PM
Corporate Presentation
- Q1 FY25 revenue exceeded expectations with a 32% year-on-year increase, driven by strong demand for Vection's AI and XR solutions.
Better than expected
14 November 2024 6:17 PM
Contract Announcement
- The $0.5 million contract exceeds expectations, demonstrating strong market demand for Vection's AI solutions and validating the strategic acquisition of TDB.
Better than expected
31 October 2024 6:15 PM
Contract Announcement
- The $1.6 million contract significantly exceeds Vection's announcement materiality threshold, indicating better-than-expected results.
Capital raise
28 October 2024 3:35 AM
Extraordinary General Meeting Results
- Share issuances related to the TDB acquisition.
- Issuance of shares to Exchange Capital Advisory Pty Ltd.
- Issuance of free attaching options.
- Issuance of broker options.
Better than expected
20 October 2024 6:57 PM
Partnership Announcement
- The $0.5 million sale of the 'Algho' platform to Dell exceeded expectations, demonstrating strong market demand and the platform's commercial viability.
Better than expected
9 October 2024 8:30 PM
Distribution Agreement Announcement
- The \$3.6 million deal exceeds the company's materiality threshold of \$500,000, indicating a positive outcome.
Delay expected
1 October 2024 5:02 AM
Trading Update
- There was a delay in lodging the annual report for the year ended June 30, 2024, which resulted in a suspension of trading.
Better than expected
30 September 2024 6:21 PM
Financial Results
- Vection Technologies exceeded expectations with 30% year-on-year revenue growth and a 34% increase in EBITDA.
Capital raise
30 September 2024 6:21 PM
Annual Report
- A $2 million placement of ordinary shares at $0.10 was issued on September 5, 2024.
- Up to circa 55 million Vection shares will be issued if TDB achieves sales and EBITDA objectives and balance sheet valuation targets one year post-acquisition.
Worse than expected
30 September 2024 6:21 PM
Annual Report
- Despite a 30% increase in revenue, Vection Technologies still reported a net loss after tax, indicating that expenses outweighed the revenue growth.
Worse than expected
30 September 2024 6:20 PM
Financial Results Correction
- The revised financial results show a significantly larger loss than initially reported, primarily due to adjustments in revenue recognition, share-based payments, and asset valuations.
Better than expected
30 July 2024 6:25 PM
FY24 Q4 Activity Report and Appendix 4C
- The company's cash receipts for Q4 FY24 were better than the prior corresponding period, increasing by 15%.
Better than expected
28 April 2024 7:54 PM
Quarterly Report
- The company's revenue, cash receipts, and contracted revenue all showed significant growth compared to previous periods, indicating better-than-expected performance.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.