Our FY 2024 Q2 Sales update. Today, I'm joined with our CFO, Justin. Good morning. Today, we're going to keep this slide up as we talk through our points. So, don't raise your hands if this slide doesn't change through. Look, we're really delighted with our Q2 results in no uncertain terms, how our H1 has shaped up. And so at the end of this session, we would like to open up to questions, and we'll answer those. So you've got two options there, which is raise your hand, and we'll get you off mute, and then you can ask the question. Or alternatively, you can type a question in the Q&A function, and we'll get that read out and go through. The questions are always helpful though, to give color and insight into this data, so looking forward to that part. Look, this was a good, solid performance from the group, and all products contributed, as well as all regions. We wanna get into how our strategy now is unfolding. Now, that is providing strong growth for the company, but importantly, those strong financial results as well. Whilst today is around our Q2 sales update, we will touch on some of those key financial metrics, but we will be covering that off in detail in our H1 results in late February. So look, let's get into some of the detail there. So new sales of AUD 3.1 million, of which there was AUD 2 million in ARR, and so you'll see the graph on the bottom left, which has been a good, consistent two million each quarter. 1.1 in project sales, and as you'd understand, project sales are good for us, certainly as a lead indicator to growth in the underlying business model, as well as driving into profit in the current year. 0.6 in aviation, 1.2 in industrial, and 0.1 in water. The focus has been also on cash management through the year, and it's prudent cost management that is driving our underlying financial results. And so we have certainly balanced FY 2024 with that, as well as growth moving forward. EVS Aviation, let's start with that and pull out some of the headlines there. Houston Airport in Texas, and also a major airport in the U.K., and we will give a little bit more color to that later in the year. At the moment, we'll remain as a major airport in the U.K., but it's a good win for us. Importantly, we now provide 18 of the 25 target opportunities in the U.K.. Strong growth from EVS Industrial, again, led strongly by the America. Also within waste and mining, which is consistent, and we're executing well to our strategy there. EVS Water had some really good success, so we're happy now with how our strategy is evolving. Certainly, less reliance on the utility, albeit still important, but really driving our business to business engagement moving through there. So that momentum in water is really paying dividends, and we're quite delighted with some of the wins through that. I will give some a little bit more color to it. Our underlying churn, excluding our one-off with defense, is consistent on 2.7%, which is a good, healthy number for the business and a key part of our business model moving forward. As a result of that, you know, we certainly reaffirm our position to deliver a positive Adjusted EBITDA less capitalized development on a run rate basis during FY 2024, which is an important target that we set at the start of the year, and we'll continue to focus on that through the year. So if we look at our Land, Expand, and Scale strategy, which is focusing in on some of the key customers and expansion capability, we're certainly getting good results of that, both in retention of customers, upsell with customers, you know, the renewals coming through, as well as then adding into new sites. We're also focused around our wanting to have an impact in certain segments in industrial segments. So take waste as an example. We know that we have got a strong value proposition, and as you'll see in the last few quarters, quarter-on-quarter, that we are getting solid waste traction, particularly in the America. Why is waste important for us? Waste is important 'cause in the America, it is actually the third largest contributor to greenhouse gas emissions, and we're working with both segments of the market, which is the private, you know, the big corporate owners of waste, as well as the municipality, the council-owned waste facilities. In mining, in particular, our land expansion scale is certainly proving strong dividends, expansion there with Teck and also with Glencore. Aviation, we do have global market leadership position in that, and, you know, we continue to drive that. And that's through product excellence, it is through strong product differentiation and also the service to support those customers. And we really are the global choice there, the technology leader that our customers are wanting to work with. So it certainly sets us up for a good position in the ongoing years, and the pipeline certainly supports that. So aviation, I might go a little bit of depth into the aviation part. So total sales of AUD 1.1 million, which, as I said earlier, 0.6 in new ARR, which brings up our ARR to AUD 36.5 million, which, excluding our churn event, represents a 10.3% growth, which we're really confident is a good number for our aviation business and one that we look to, you know, continue to push through that in the coming years. But let's spend a bit of time sitting on the Houston Airport. This is a major win in the U.S. for us, and one that the team have been working with the customer for a period of time. Good competition in that one, but there was certainly a high bar, high threshold there from the customer to have a strong technology solution and also a partner that could work with them. And so that was a three-year engagement that we've got. Certainly the U.S. team continues to have strong success in all parts of the U.S. and Canada, and this again, really cements it. So certainly in Texas, we have a strong foothold. Certainly in the America, we have a very strong foothold there. Major airport in the U.K. was signing up for five years there. But within our install base, if you look at the underlying part, as you know, we have over now 190 airports globally, with most of the global leading airports that you would be familiar with. But it's important that we serve them, we serve them well, and continue to innovate with them. And so we have had a good expansion there with Incheon International Airport in South Korea, and back in the U.K., Heathrow and London Gatwick expansion opportunities as well. And we'll continue to work with those customers to drive new solutions, and, and serve them, as well as growing our ARR. Here in Asia, we had our Hong Kong Civil Aviation Department, which upgraded a portion of its instrumentation, which was good for our non-recurring revenue. So the U.K., in there, so I mentioned before, 18 of the 25 airports are our target. We've got a long history of being successful in the U.K. and serving through those airports, and certainly when we had our noise forum late last year, it was well represented by the U.K. airports, and had very good discussions with them. But, you know, this airport, their existing noise management system has been in place there for several years. And as with most airports around the world, the community evolves, the community noise problem starts to evolve as well, and there's much greater scrutiny that comes in from the communities there. And so they certainly recognized that they had to change what they were doing. They went out to market with a rigorous RFP process, and we were successful in that. Again, we weren't the cheapest, in that, that's not our aim. We certainly had the most encompassing solution for this particular customer. Plus, also, our market leadership position in this one really gave a confidence that they are working with the world's best. And when you sign up to a five-year deal, you wanna be making sure that you're working with the global leaders, so supporting not only your needs today, but certainly well into the future. So we're excited to bring this new customer on and strengthen our broader U.K. capability within the aviation sector. Moving to industrial, total sales of AUD 1.8 million there. New ARR of AUD 1.2 million. The graph on the release there, you'll see, you know, it's a good, solid growth for our industrial part, AUD 1.2 million. But that's made up of a host of different customers in different geographic regions, which is quite exciting for us. Let's focus in on the America region, though, with Orange County, California, which is a new waste customer. As I said earlier, we have two value propositions here, dealing with the county and then also dealing with the private operator. There are two very distinct value propositions, but the strength of the Omnis product, which sits in the industrial portfolio, is that it can cater for both. The underlying problem statement is true, but the application is quite different. What's also exciting, though, is the additional site there with the waste management company in the U.S. They, for privacy reasons and their own, addressing their own issues there, you know, they're wanting to keep that name private. What it shows is we're now adding sites into that customer base. That's a true Land, Expand, and Scale opportunity that we've got there. Going to, you know, our existing customers, again, it's the backbone of the company. The backbone of our strategy is to serve those customers. Teck Resources in Canada, Cerrejón and Americas in South America has continued to expand. That's driven in part by products, also in part by our customer success strategy, where we're working with our customers to showcase what the technology can do, and work with them to expanding both its capability and its exposure to those particular sites. Back here in Australia, we're able to expand with our wastewater customer in Queensland, which is Urban Utilities, and also then back into the U.S. with our City of Chicago Department of Public Health, which is, again, really important for the business and understanding our strategy. We want to be landing customers, and then we want to be expanding with them. Glencore is certainly a success story for us, and we continue now to drive growth within that account. So we have Glencore certainly in South America adding new sites. We also have expansion, we also recently won in South Africa as well. So certainly Glencore will become more and more an important logo for us as we continue to work with them and drive value for them... In Southern Water, success story on two fronts there, and a good cross-sell opportunity as well, but we did at a fifth wastewater site for Southern Water in the U.K.. Churn had a slight increase in 7.3%, and that was actually in mining. But mining, you will get the odd churn event to go through. But as we've said, we've got significant expansion, and certainly our second half pipeline is very strong in mining, and even looking into FY 2025, we're seeing significant expansion opportunities in there. Touching on Glencore. Look, Glencore is a household name in mining. You know, we are lucky to have them as a customer, and that's really based on having such a strong relationship in Cerrejón, where we've been working with them now for many years and driving considerable value for that particular mine site. It is the largest coal mine in Latin America, you know, and it's strategically important to Glencore, plus also to the community that it serves. And it's an important one to understand in mining, that it always is a community that serves, a community that employs in the local region, and it's trying to get the balance of getting the mining operation to operate within the environmental and community parameters. We're really delighted to be working with Glencore, and we'll continue to focus on growth, both within existing Glencore sites and also new sites. Water, we had a particularly strong quarter, and if we go back to sharing our strategy previously, where we have opened up now to business-to-business engagement, as well as our utility focus, it certainly is providing strong dividends through there. So we've got new ARR of AUD 0.2 million coming through, which has now got our ARR up to AUD 1.7 million in there. So we're certainly delighted with the growth that we're seeing, but we're actually more delighted with the logos and the quality of customers that are now starting to use our technology. So the first point that we'll kick off with is Ace Water. Ace Water is a leading water treatment company in Singapore, and they've got a strong strategic footprint in there. We showcased our technology to them recently, and they were blown away by its capability and how they can see that it can serve certainly the Singaporean market and potentially other markets in Asia. And so this agreement will see that the EVS Water technology used initially in a small number of water reclamation plants and industrial wastewater plants, but then also grow out. So we want to be partnering with Ace Water, and this is very similar to what we did with Ion Exchange in India. So certainly our growth and our focus has been successful. Chadi has been very busy in driving this B2B exposure, so we're very happy with his progress as he has made in a relatively short space of time. Here in Australia, we signed up Origin Energy with Plant Designer. Now, you may remember Plant Designer is at the lower end of the price point for us. This is effectively a desktop application. It's cloud-based, but desktop application that you know uses to design water facilities. And so Origin Energy are using this to model out complex chemistry, which operates in the coal seam gas and wastewater treatment storage. And so they're going to use that to optimize and improve their operations. So certainly delighted to have Origin Energy as a customer. We also signed here now in Germany a very important opportunity for us, which is with Plant Designer, but with BASF. And BASF, as you can appreciate, is an industrial global industrial brand that has significant impact on this. So it's one of the most well-known industrial organizations globally. They're going to be modeling out water and wastewater treatment applications particular to their manufacturing facilities. It certainly has got potential now to scale globally, so our teams will be working with BASF to ensure success and maximize our growth potential. As I mentioned earlier, around Southern Water, we have had another cross-sell opportunity. What we're seeing with SeweX is almost always where we sell SeweX into a wastewater facility, we have an Omnis opportunity, and either one pulls through the other or the other pulls through. So SeweX in here has, we had already had a good, strong Omnis engagement within Southern Water. They've now got SeweX coming in. So this is our first SeweX application in the U.K. Happy to be working with Southern Water onto this one as well. It's interesting, again, slightly different application for SeweX there. Same underlying technology, which is great, but just a slightly different use case. As we expand our install base, we're starting to learn more and more about the different applications and needs in the different markets there. So certainly that's really good. I'll touch on Ace Water, so I won't go in much into that, but certainly with Ace Water and Ion Exchange, you know, we do have some really solid B2B engagements there. I just want to jump in, just to confirm those who were late to joining the call, just to confirm that there's not a presentation that we're running through today. It's just the title slide that you see is all we're presenting. We're just doing a walk through the release that's gone out to the ASX. Just confirming for those, Jason mentioned it at the start, but I'm sure that some people got held up in joining the call. Sorry, Jason. Thanks, Justin. No, it's good that you jumped in. So moving to, you know, page six on the slide. We have included at a constant currency basis there as we've grown out. Justin, is there anything you wanna touch there on to from ARR and the outlook? Yeah, well, thanks, Jason. The reason for showing constant currency is just to give the underlying movement and change in the business and growth in ARR over the period. Clearly, when you're looking at it on a reported basis and you see that it has dropped, that has been largely impacted by an adverse movement in US currency, certainly in the half year period. Showing constant currency gives us that confidence around where the underlying growth in the business is, or that the underlying business is growing, as we know, and the fact that we are impacted at this level by currency movements. When you're looking at a metric like this that drives, you know, revenue at the top line, what it's also associated with is the. On a results basis, we get the corresponding either benefit or downside when it comes to our cost. So it's not, it can't be taken in isolation, we look at it in a full sense of the business. Going forward, we'll continue to report on this basis so we can track, but we track back to the base being the last reporting date at 30 June. In terms of outlook, happy to rather than wait for the question to be fielded, but on the front foot, we are in the process of completing our half year audit review for the 31 December 2023 numbers. And that's progressing as expected, with the anticipation of a release in the late part of February. The results to date continue to demonstrate the growth that we're seeing in the business and the performance at the profitability metric that we described as our goal and target. We remain on target to achieve our run rate profitability in Adjusted EBITDA, less capitalized development costs, during the forecast period being Q4 FY 2024. Yeah, thanks. And I guess if we now look to the future, certainly the wins that we've announced in this quarter certainly cement the executions, the strategy in all three products: so aviation, industrial, and water. Particularly delighted with the traction that we have had in water in Q2. As always, we do, you know, deep analysis of the future pipeline. And what we can say there is that there is strong growth opportunities over the next H2, but into FY 25, so a rolling 18-month forecast. Certainly with aviation, there's good opportunities. And I think the forums that we held back at the end of last year, you know, certainly opened up numerous opportunities within our customer base as well. In mining, we're seeing really strong adoption of our technology in there. So the pipeline for mining is very strong in all regions actually, which is great. We're starting to open up new customer logos, which then opens up new geographic areas. The beauty of our business model, you know, and our existing global footprint, means that we are in the industrial part able to add customers effectively in any part of the world without really incurring any increase in headcount. And so the industrial platform is an incredibly scalable platform that we have got there. So our focus will be to work with logos, to work with key customers, and to drive product implementation and adoption in all of the different geographic areas to support our customers around the world. What you will see moving forward is certainly the gross margin improvements in the industrial part really start to leverage. What we have got is a very scalable platform in there. We also have an incredibly advanced platform that we are confident in. We have a very high hit rate on our sales pipeline, as well as strong product and customer usage adoption as well. So certainly the pipeline there is very healthy for the industrial part. ESG does help. Of course, ESG, you know, is a key driver for customers, but our focus has always been, you know, to drive ESG and operational improvement. And what you are seeing is a greater focus from our customers to drive that operational improvement to drive a net benefit, and that's certainly where we help. Water certainly has made that cut-through now in B2B, and, you know, you do not sign a BASF in the industrial sector without close scrutiny and understanding. So the work that the European team did to get that customer across the line onboarded, you know, and using the product, has been absolutely first class. So water represents a great opportunity for Envirosuite. So at that point, what we might do is throw to Q&A, and see where the questions come from. Great. Thanks, Jason and Justin, for delivering that update... So before I jump into the questions, just to remind everyone on how to engage with the Q&A section of today. So you can either raise your hand, and I'll come to you and take you off mute, and you can pose your question live on the call. Otherwise, there is the Q&A function that we have, which some people have been using during the session. Thank you. Please feel free to submit your questions using the Q&A function as well. So first question: There are a few questions actually, which are of a similar nature. So, thank you, Scott Lockwood, Chris Savage, and Robert Bruce. I'm gonna combine these questions kind of into one. So, guys, could you talk a little bit around the why the airport total ARR declined quarter-on-quarter from Q1 to Q2? And then one of these questions was also asking a bit more specifically about the churn event that we reported back in Q3 FY 2023, and why we're still seeing that impact. Yeah, look, thanks, Jeremy. Let me jump in on the first question in terms of churn and sorry, in terms of growth on a ARR. On a quarter-to-quarter basis, we have seen the total going from 37.2 on a reported basis, down to 36.5. We mentioned there's the impact of currency, and when you're a global business like Envirosuite, we being an Australian tech company, if you like, exporting our capability to global markets, we are exposed to currency. What we then do is when we're analyzing that, to really demonstrate where the growth of the business is coming from and what the underlying growth is, we then revert back to a constant currency basis, where we use the rate that exists as at 30 June. In this case, it's gonna be 30 June 2023. And on page six of our release, you can see the constant currency where we've been able to shift our aviation business from 36.4 at June to 37.1 at the end of December. So we've got that in our numbers and demonstrates the growth that we're seeing, that accords with what Jason's just been through. Why we keep referring back to our churn base, our churn number. And the churn event in Q3, our churn numbers are based on a last 12 months calculation, so it takes into account all the, you know, what the ARR was 12 months ago. We then look at the churn that's occurred, and we base it on that number. So as to give a true annual number rather than a quarterly annualized, because we see that the longer term trend is more reflective of the underlying performance in the business. So... When we get to the point that the churn event in Q3 has now come out, we'll stop reporting on that because it will be reflective of a 12-month post that churn event. Hopefully that assists in understanding that calculation. Thanks, Justin. Another question, similar, but at the company total ARR level. Can we talk to the quarter-on-quarter decline despite adding AUD 2 million in new ARR? And sort of a secondary comment to the question, the new ARR appears to be at odds with total ARR, you know, around the FX churn events and so on. So, if you could give a bit more color to that too, that'd be great, please. Look, thanks, Jeremy. So one of the pieces that we talk about when it comes to churn, and we've outlined in our definition, is that we look at our churn events as being those where the result with the customer or the outcome with the customer is that we've churned and no longer have an ongoing relationship with them, despite the opportunity to have that. Now, I'll give a corresponding component to that, which is we have downsells from existing customers that we don't account or we don't account—we record, but we don't determine that they are part of a churn event. They're a downsell and are otherwise excluded from the transaction. Typically in the past, for example, we've noted that we've got relationship with Lendlease, and Lendlease undertakes ongoing monitoring of various construction sites. Rather than showing the construction site that we know that's coming to an end as a churn event, we record that as a downsell. So there are circumstances where with a company or a construction company like Lendlease, where there are multiple environmental monitoring services provided to that customer and to various sites, we show the upsell as new ARR, but we certainly aren't showing that downsell as a churn because it's not necessarily, or it isn't a churn event. We also have other arrangements that are end of contract. So where, and we, we mentioned this at the end of Q1, where we had a number of low-margin, end-of-life, monitoring arrangements that we had, that, that hit our Q1 ARR, but we, we don't record them as a, as a churn event, on the basis that they're an, an end-of-life contract, with a determined end date in it. What, what we're trying to reflect in our churn is what is the impact on our underlying business and, and the customer uptake, on the product, and assessing it as a, you know, to the extent that there's a product market fit issue or, or matters of that nature, that we would then reflect back into our product roadmap, that we may be able to deliver, that service or that product capability down the track. There's always that underlying perspective of what is going on at the customer, why they churned, and getting a deep dive into that, and understanding it, is it product? Is it service, or is it price? As Jason mentioned before, customer success remains a very strong focus of the business to ensure that our customers are utilizing and getting the benefit of our platform on their day-to-day operations. Yeah, the only other thing I'd add to that is, you know, we are focused on improving the underlying results in the company. So gross margin is one of the key factors for this, and also the scalability of the business. So it's important to understand that, you know, going back to those NPI contracts, that, you know, we are focused there on the things that has got healthy gross margin that is beneficial for the business. And so from time to time, we need to make decisions with customers, or technology there, to make sure that we can achieve our end goal of getting this above a 60% gross margin business. Thanks, guys. A couple more questions around some of the churn numbers here. So, Jason, you mentioned in the industrial part of the update, we spoke about a mining site that churns. Chris Savage just asked if you could give a little more context around what happened at that particular mine? And then a question from Gary Merkel, which is really also going into and being around what are we... Can we talk to what we're learning or things we're putting in place to reduce future churn as well? Yeah, I might start with Gary's, Gary's question first, because I, I think that's sort of the, the, the leading part. Look, you've got-- we've now got almost 500 customer sites around the world with, with, with different forms of engagement, right? So you're always gonna have some variability to, to come into that. We have got incredibly low churn within the business. If you compare this to any other, you know, industrial type part, it's, it's very strong. And what we're looking for is customers that do have long-term ARR contracts that we can grow with. From time to time, you are gonna get a mine site, it might be an individual, that comes through and says, "Look, I want to try something different." So the mine site there, it was literally that somebody said, "Hey, listen, we want to try something different." Three months after they've tried something different, they've already spoken to us to say, "Hang on, we don't like the decision we made," and we've got strong engagement back, not only with that customer on that particular site, but actually more globally, with that particular customer. So learning is an incredibly important part, right? What was the missing piece in that for someone to try something different? We have got customer success now in each of the regions. So the regions take on a strong understanding of what actually is required, and how we need to go about the engagement with the customer, the use of the product adoptions. We have lead and lag indicators embedded into the product about how people are using it, what the adoption is. We understand, you know, the importance of having multiple touch points within the customer group. And so that is a continual focus for us. And we'll be, you know, moving forward. And as we go from 500 sites to 1,000 sites, inevitably you will get a site here or there. But the numbers, certainly with industrial and aviation, is incredibly low moving through. It is a constant learning part, and that is the key element there, that we're learning, we're adopting. What we're not seeing is we're not getting beat, not getting beaten on technology capability. We're not getting beaten on customer service. We're not getting beaten, you know, on the future expansion capabilities. We do have a price premium in the market, and we want to protect the price premium. What we deliver is certainly seen in the market as industry leading, and so we always need to protect that point. So hopefully that answers both questions. Thanks, Jason. Questions coming in via the Q&A function, which is great. Thanks, everyone. You're more than welcome to raise your hand and pose your question live as well, if you'd like. We've had a question come through from Tristan Whitehorn. So Tristan's recalling that in one of our previous briefing sessions, we spoke about how more and more we're seeing that the kind of business we're doing is requiring us to take responsibility for the instrumentation and, you know, property, plant and equipment more broadly. Are you able to comment on what proportion of our new revenue is being driven by PPE? Which is presumably dilutive of margin compared to the software component. Sure. Thanks, Jeremy. Look, I'll take that one. So we continue to monitor all opportunities that come through from the business or from the sales organization in terms of... And this is predominantly, I shouldn't say predominantly, it's only in the industrial space that we're seeing this in the aviation model, and certainly comes down to who the owners of airports tend to be. They have CapEx allocations for their instrumentation. So it's typically in the industrial business that we're seeing the move to instrumentation as an all-up bundled price under the under our, if you like, contract arrangement over the term of the contract life. In terms of margin, we look at all of our opportunities and price them based on margin from a budgeted perspective. There's no doubt that the margin on the instrumentation piece is slightly less, because we do have that instrumentation being third-party supplied in a lot of cases when we are supplying it, that comes via our main supplier there being Kunak. We then look at the platform margin. Yes, that will continue to be at a much higher rate, typically of a software company that is, you know, when you split out the instrumentation. In terms of our budget and our assessment of where we see it, we're seeing that, you know, on a rough run rate basis, it's around AUD 100 thousand-AUD 150 thousand a month that we are putting aside for instrumentation that's going out to sites under this, what we call an OpEx arrangement. We see it as beneficial in many ways. The first one is we have it bundled up as a responsibility under Envirosuite to manage this instrumentation. And we see the life of these instruments as being quite extended. When we price into the contract, our pricing is certainly looking to recover the cost of that instrumentation over a shorter term of the lifespan of that instrument. So we do have instances where we can replace that, where we can reuse that instrument if the contract comes to an end, or if the... When the contract is renewed, there's no need to update the instrumentation. The second thing we're seeing on the industrial space or in the industrial customer base is that we are open to other forms of instrumentation that can connect into our platform. That's unlike the aviation one, where the instrumentation is in a closed loop with our platform. Whereas under industrial, we have an open platform. That then enables customers that have got instrumentation already located on site to do, you know, on-the-spot type monitoring, to be able to connect that into our, to our platform. In those types of arrangements, we would expect obviously a significant, in higher gross margin from that particular customer base, and they continue to be opportunities that are presented into the business. Thanks, Justin. A question from Thomas Shakis. So going back to the conversation around downsells and churn, are you able to provide a net revenue retention measure over a 12-month basis, as is seen in software-as-a-service businesses? Yeah, it's a really good question. So that's actually something that we are starting to lead to and doing some internal calculations on that before we release it externally. But it, it is one of the key drivers for us internally. As I mentioned before, the lead lag indicators in the business that we, we do track through, but NRR is certainly an important one. Great. A couple of anonymous questions, but good ones to run through. This first one is probably a quick one, and I'll throw the second question in as well. First question: Is office rent costs included in your definition of Adjusted EBITDA? Second question: What should we be expecting in FY 2024 around share-based payments and restructuring costs? Okay. So look, I might... I'll take this one on board, but noting that this is a sales update, not a half year finance update. Let me give some color to the content. In terms of the office costs, without taking everyone down this journey of accounting standards, we do an add back on the for our office cost expense, whereby we bring in the depreciation component that is otherwise taken out at an EBITDA level. We add it back in to adjust the EBITDA, to give an equivalent, if you like, of what our cash costs would be, were we to show our building costs as the rent as a cash expense, as opposed to how it's accounted for under accounting standards. So we do bring in an equivalent thereof, because what we're particularly focused on is giving a view and perspective on EBITDA as being, or adjusted EBITDA for that matter, as being our proxy for cash. So the long answer to that is yes, we... Oh, sorry, the short answer to that long one is, yes, we do make the adjustment and bring it in, which is consistent and disclosed in our both annual report and in investor decks that we have presented to the market historically. Likewise, we do bring in our impact of share-based payments because we see them as a long-term incentive that's provided to the senior executive of the company. And in keeping with custom, we do exclude that from our Adjusted EBITDA calculation. In terms of the quantum and the phase of that, historically, we, we've got those recorded in our most recent 30 June annual report, and we will be providing an update to that number for 31 December, when we release our results later this month. Thanks, Justin. Couple questions to go. Ross Barrows. Thank you, Ross. You called out that the incremental ARR is around AUD 2 million a quarter. What and when is the catalyst for that metric to consistently move to AUD 3 million or AUD 4 million per quarter? Yeah, so great question, Ross. We, we set out this year to, first of all, achieve that the transition to, to cash flow positive, right? As we go from loss making into that part. And so we have certainly prioritized certain expenses, onto that one. That's not to say we haven't taken the foot off growth. Growth is still a key driver, but as our number one priority, right, we, we wanna make that transition through and then do that on a sustainable basis. What we have seen in different, quality of releases is where we have the large three or 3+ number, there's some large projects that have come in. And so that is timing dependent. We certainly have seen, both in H1 and H2, some significant projects with customers and a little bit of timing slippage. We're not gonna blame timing on this one, but it's a reality that certain large projects that do come through with customers in mining or aviation can have a material impact on the ARR. And so, you know, there's two things. One, you've got to build a pipeline, you've got to have sales people on the ground, and you've got to be able to scale that through. We have prioritized on transitioning to cash flow positive on a sustainable basis, you know, as well as tracking in these larger projects that we come through. So, you know, we would like to see that, you know, once we get through onto that cash flow positive, which is not far away, is that then we can certainly further invest into sales, sales and marketing, lead generation, to drive that. But our focus, our priority, is certainly on the underlying financial results for FY 2024. Thanks, Jason. Final question from Gary Merkel. Thanks, Gary. Are you still confident that you have sufficient liquidity to see the business through the free cash flow breakeven? Yeah. I mean, Justin, why don't you go first and then I'll close off? Yeah. Look, thanks. Thanks, Jason. In terms of liquidity and ability to move forward, as we've outlined, we have a debt facility at AUD 7.5 million, and for those who may not be familiar with the terms, our financing partner, Partners for Growth, have set our borrowing base as being 2.5 times average monthly revenue. So what that provides us with is the ability to extend that facility, you know, on the basis of should we need additional funding, we can take that. You know, based on some of the initial numbers that we produce monthly because we need to compare our covenants that they've otherwise outlined. We know that we have a facility that if we requested it, we could look to increase it up to around AUD 11 million. So we know that there's a facility there. Now, so that gives us an option, if you like, of liquidity, should we need it, that we can go and access debt. What we're also acutely aware of is our underlying working capital management, and we continue to work with all our customers, both existing and new, to ensure that cash flows on each project are strong and maintained and where possible, in a positive setup, so that when we're funding our instrumentation that we need to purchase for an industrial or aviation customer, that we're getting paid for that in reasonably quick turnaround. So the short of it is, yes, we're confident that we've got sufficient liquidity or access to funding without needing to go to the capital markets. There's a debt facility that we can draw on, as I mentioned, and we continue to work very strongly on cost management, but also working capital in terms of our AP, AR, and inventory levels. Yeah, I don't think I've got anything more to add to that. It is a focus for Justin and I, you know, the prudent cost management as we work down there, and we'll continue to do that. But, yeah, we're comfortable with where we are today. Thanks, guys. No further questions. Jason, I'll pass it back to you for some closing comments. Yeah, look, thanks, and really good questions today. Great that we were able to get into the detail. Sometimes there's only a handful, but that was good questions for us. Look, proud of the result of the AUD 2 million Q2. I think it sets us up for a strong finish into H2. We know the pipeline's there, and the pipeline there supports both water, aviation, and particularly industrial. So certainly keep tuned in to the growth that we're going to see across the board. Americas continues to be a shining light for us, you know, and that's based not only on the market forces, the huge markets there, but certainly the quality of the team, and the depth. So that's great. So yeah, I think H2 will finish well. Tune in, back end of February- Yep ...for the H1 results, and I think that's the part that, you know, we'll get into it and start to take you on a journey about how we're dealing with the financial part of the business. So yeah, good, good, good first half for the business, and certainly sets us up for a strong finish in H2. Yep. Great. All right. Thank you, and good morning.