GI DYNAMICS, INC. - FORM 8-K - EX-99.1

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8-K - 8-K - GI DYNAMICS, INC.	d558479d8k.htm

Exhibit 99.1


		Appendix 4C: Quarter Ended 31 March 2018

Boston, United States Sydney, Australia 30 April 2018 AEST		BOSTON and SYDNEY – 30 April 2018 – GI Dynamics, Inc. (ASX:GID) (the Company), a medical technology company that has developed an innovative device to improve outcomes for patients battling type 2 diabetes and obesity, today released its Appendix 4C — Quarterly Cash Flow Report for the quarter ending 31 March 2018 (the Quarter).

		Key Financial Information

		Appendix 4C, which has been prepared in U.S. dollars under U.S. GAAP, is attached and the results disclosed in Appendix 4C are unaudited. The Company also plans to file its Quarterly Report on Form 10-Q with the U.S. Securities and Exchange Commission and the Australian Securities Exchange on or before 15 May 2018. Form 10-Q will provide financial statements for the quarterly period ended 31 March 2018, along with management’s discussion and analysis of financial condition and results of operations.

		As of 31 March 2018, the Company had cash and cash equivalents of $2.6 million compared to $3.0 million on 31 December 2017. The decrease in the cash and cash equivalents balance for the quarter is primarily comprised of $2.0 million of net cash used in operating activities offset by net cash from financing activities of $1.5 million.

		About GI Dynamics

		GI Dynamics^®, Inc. (ASX:GID) is the developer of EndoBarrier, the first endoscopically-delivered device therapy for the treatment of type 2 diabetes and obesity. EndoBarrier is not currently approved for sale and is limited by federal law to investigational use only. Founded in 2003, GI Dynamics is headquartered in Boston, Massachusetts. For more information please visit www.gidynamics.com.
Investor Relations United States: Janell Shields +1 (781) 357-3280 investor@gidynamics.com		Forward-Looking Statements This announcement may contain forward-looking statements. These forward-looking statements are based on GI Dynamics management’s current estimates and expectations of future events as of the date of this announcement. Furthermore, the


Boston, United States Sydney, Australia 30 April 2018 AEST		estimates are subject to several risks and uncertainties that could cause actual results to differ materially and adversely from those indicated in or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, risks associated with our ability to continue to operate as a going concern, our ability to maintain compliance with our obligations under the existing Convertible Loan Note executed with Crystal Amber Fund Limited in June 2017, our ability to receive shareholder approval of our proposed convertible note and warrant financing with Crystal Amber Fund Limited, obtaining and maintaining regulatory approvals required to market and sell our products; obtaining funding from third parties; the consequences of stopping the ENDO trial and the possibility that future clinical trials will not be successful or confirm earlier results; the timing and costs of clinical trials; the timing of regulatory submissions; the timing, receipt and maintenance of regulatory approvals; the timing and amount of other expenses; the timing and extent of third-party reimbursement; intellectual-property risk; risks related to excess inventory; and risks related to assumptions regarding the size of the available market, the benefits of our products, product pricing, timing of product launches, future financial results and other factors, including those described in our filings with the U.S. Securities and Exchange Commission. Given these uncertainties, one should not place undue reliance on these forward-looking statements. We do not assume any obligation to publicly update or revise any forward-looking statements, whether as a result of new information or future events or otherwise, unless we are required to do so by law.

		###

Investor Relations United States: Janell Shields +1 (781) 357-3280 investor@gidynamics.com

Appendix 4C

Quarterly report for entities subject to Listing Rule 4.7B

+Rule 4.7B

Appendix 4C

Quarterly report for entities subject to Listing Rule 4.7B

Introduced 31/03/00 Amended 30/09/01, 24/10/05, 17/12/10, 01/09/16


Name of entity
GI Dynamics, Inc.

ABN		Quarter ended (“current quarter”)
151 239 388		31 March 2018


Consolidated statement of cash flows		Current quarter $’000 USD			Year to date $’000 USD
1.	Cash flows from operating activities
1.1	Receipts from customers		5			5
1.2	Payments for:
	(a) research and development		(233	)		(233	)
	(b) product manufacturing and operating costs		(15	)		(15	)
	(c) advertising and marketing		(25	)		(25	)
	(d) leased assets		—			—
	(e) staff costs		(547	)		(547	)
	(f) administration and corporate costs		(914	)		(914	)
1.3	Dividends received (see note 3)		—			—
1.4	Interest received		7			7
1.5	Interest and other costs of finance paid		—			—
1.6	Income taxes paid		(11	)		(11	)
1.7	Government grants and tax incentives		—			—
1.8	Other (provide details if material)		(250	)		(250	)

1.9	Net cash from / (used in) operating activities		(1,983	)		(1,983	)


2.	Cash flows from investing activities
2.1	Payment to acquire:
	(a) property, plant and equipment		—			—
	(b) businesses (see item 10)		—			—
	(c) investments		—			—


+ See chapter 19 for defined terms		Page 1

Appendix 4C

Quarterly report for entities subject to Listing Rule 4.7B


Consolidated statement of cash flows		Current quarter $’000 USD			Year to date $’000 USD
	(d) intellectual property		—			—
	(e) other non-current assets		—			—
2.2	Proceeds from disposal of:
	(a) property, plant and equipment		—			—
	(b) businesses (see item 10)		—			—
	(c) investments		—			—
	(d) intellectual property		—			—
	(e) other non-current assets		—			—
2.3	Cash flows from loans to other entities		—			—
2.4	Dividends received (see note 3)		—			—
2.5	Other (provide details if material)		—			—

2.6	Net cash from / (used in) investing activities		—			—


3.	Cash flows from financing activities
3.1	Proceeds from issues of shares		1,606			1,606
3.2	Proceeds from issue of convertible notes		—			—
3.3	Proceeds from exercise of share options		—			—
3.4	Transaction costs related to issues of shares, convertible notes or options		(103	)		(103	)
3.5	Proceeds from borrowings		—			—
3.6	Repayment of borrowings		—			—
3.7	Transaction costs related to loans and borrowings		—			—
3.8	Dividends paid		—			—
3.9	Other (provide details if material)		—			—

3.10	Net cash from / (used in) financing activities		1,503			1,503


4.	Net increase (decrease) in cash and cash equivalents for the period
4.1	Cash and cash equivalents at beginning of quarter/year to date		3,034			3,034
4.2	Net cash from / (used in) operating activities (item 1.9 above)		(1,983	)		(1,983	)
4.3	Net cash from / (used in) investing activities (item 2.6 above		—			—
4.4	Net cash from / (used in) financing activities (item 3.10 above)		1,503			1,503


+ See chapter 19 for defined terms		Page 2

Appendix 4C

Quarterly report for entities subject to Listing Rule 4.7B


Consolidated statement of cash flows		Current quarter $’000 USD		Year to date $’000 USD
4.5	Effect of movement in exchange rates on cash held		9		9

4.6	Cash and cash equivalents at end of quarter		2,563		2,563


5.	Reconciliation of cash and cash equivalents
	at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current Quarter $’000 USD		Previous Quarter $’000 USD
5.1	Bank balances		148		450
5.2	Call deposits		2,415		2,584
5.3	Bank overdrafts
5.4	Other (provide details)

5.5	Cash and cash equivalents at the end of quarter (should equal item 4.6 above)		2,563		3,034


6.	Payments to directors of the entity and their associates	Current quarter $’000 USD
6.1	Aggregate amount of payments to these parties included in item 1.2		—
6.2	Aggregate amount of cash flow from loans to these parties included in item 2.3		—
6.3	Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2

	No payments to directors in Q1 2018


7.	Payments to related entities of the entity and their associates	Current quarter $’000 USD
7.1	Aggregate amount of payments to these parties included in item 1.2		213
7.2	Aggregate amount of cash flow from loans to these parties included in item 2.3		—
7.3	Include below any explanation necessary to understand the transactions included in items

	Expenses incurred at wholly-owned subsidiaries of GI Dynamics.


+ See chapter 19 for defined terms		Page 3

Appendix 4C

Quarterly report for entities subject to Listing Rule 4.7B


8.	Financing facilities available Add notes as necessary for an understanding of the current position	Total facility amount at quarter end $’000 USD		Amount drawn at quarter end $’000 USD
8.1	Loan facilities
8.2	Credit standby agreements
8.3	Other (please specify)
8.4	Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additonal facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.

9.	Estimated cash outflows for next quarter			$’000 USD
9.1	Research and development				105
9.2	Product manufacturing and operating costs				—
9.3	Advertising and marketing				—
9.4	Leased assets				—
9.5	Staff costs				360
9.6	Administration and corporate costs				641
9.7	Other (provide details if material)				—
9.8	Total estimated cash outflows				1,106

10.	Acquisitions and disposals of business entities (items 2.1 (b) and 2.2 (b) above)	Acquisitions		Disposals
10.1	Name of entity		N/A		N/A
10.2	Place of incorporation or registration
10.3	Consideration for acquisition or disposal
10.4	Total net assets
10.5	Nature of business

Compliance statement

1	This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

2	This statement gives a true and fair view of the matters disclosed.


Sign here:		Date: 30 April 2018
	(Director of Finance and Secretary)

Print name:	Dave Bruce


+ See chapter 19 for defined terms		Page 4

Appendix 4C

Quarterly report for entities subject to Listing Rule 4.7B

Notes

The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report.

3.	Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.


+ See chapter 19 for defined terms		Page 5

GI DYNAMICS, INC. - FORM 8-K - EX-99.1 - May 1, 2018

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GI DYNAMICS, INC. Reports