Thank you for standing by and welcome to the ImExHS Limited first half fiscal year 2022 conference call. All participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand the conference over to Dr. Germán Arango, CEO and Managing Director. Please go ahead. Thank you. Good morning and thank you for joining us for the presentation of our first half 2022 results. I am Dr. Germán Arango, CEO of ImExHS, and with me on the call is our CFO, Reena Minhas. I will be taking you through a presentation pack put up on the ASX platform this morning, and it will be best if you have that in front of you. Turning to the agenda on slide two of the presentation, I will start with an overview of ImExHS and the highlights of our first half results. Reena will then cover the financials in more detail, and I will follow with our strategy and outlook before opening it up for questions. Turning to slide four, we will cover much of this during the presentation, so I will just give you a quick summary now. All the key metrics, both operational and financial, are showing a strong growth. We continue to develop a growing pipeline of opportunities and are in final advanced negotiation with two material contracts. Our radiology services business is mostly in Colombia. It is substantially differentiated through specialization, highly qualified doctors, and the use of ImExHS Enterprise software. All of which give us a substantial edge. The stock market downturn, most particularly in pre-profit tech stocks, has made us determined to swiftly get in a position to become cash positive and not reliant on the market in the future. To achieve that, we have focused the company on those elements in product, sales, and market development that will drive profit and cash. The equity capital raise is well underway with some elements completed. We thank our shareholders for their support and confidence. The investment the company has made in disruptive cloud-based medical imaging software is only at the beginning of the journey of its value. Slide five provides you with a summary of who we are. ImExHS was founded 10 years ago in Bogotá, Colombia, with the aim to democratize access to medical expertise through technology and services. The company consists of two businesses, medical imaging software and radiology services. The next slide six, shows our expanding global footprint. We have grown to be a leading radiology software and services provider in Latin America and are expanding overseas to markets such as the U.S. and Australia. Our software is installed in 418 sites used by over 2,600 radiologists across 15 countries and is developed by 37 engineers based in Colombia. Our services business has over 130 radiologists with 33 radiology centers in Colombia and teleradiology for customers in Spain and Mexico. Let us move on to the operational status and progress for the first half. On slide eight, we outline our operational highlights for the year. We continue to make good progress with ImExHS Cloud, formerly Aquila in the Cloud, our standardized radiology software solution with 140 contracts signed to date and an ARR of $2.8 million. This is the total contracted annualized value and includes both installed and billing and contracts not yet installed. While our standardized ImExHS Cloud product is growing, so is our IMEXHS Enterprise for large and more complex hospitals. Because it requires close collaboration with customers, it has mostly been approved for Colombia, Peru, Ecuador, and Mexico. Strengthening our partner network remains a priority, with six new partners from four countries, including the first entry into a Southeast Asia market through Thailand. Two key renewed contracts with Colsubsidio and Colombia's National Police were entered into in June, both with improved prices. Both contracts are for the complete outsourcing of radiology services, including ImExHS Enterprise software. The new contract with major hospital group Colsubsidio provides for additional services of nuclear medicine and enterprise software for ophthalmology, as well as an expansion in the number of sites from 23- 28 over time. IMEXHS Cloud beta product went live with three IMEXHS partners and is used by 66 active customers. This is an early version of our universal medical imaging software aimed at covering a wide range of ologies and able to adapt to necessary workflows for each. It represents an important step in our strategic path. The universal ImExHS Cloud will offer major benefits to multidisciplinary clinics, as well as provide a standard, easily configurable software package, which will be unique in the marketplace. We expect to release a general use software version in 2023. Moving to slide nine, path to profitability. Importantly, let me outline the actions taken to deliver our path to profitability. The planning is complete, and we are midway through implementing a cost out program aimed at getting to cash positive at the company level with both divisions profitable. We have refocused on the near-term sales pipeline and on product development, which will swiftly contribute to profit. Our sales capability is directed towards the immediate pipeline as opposed to longer-term market development. There have been minimal one-off costs incurred in H1, and further one-off costs are forecast for H2 to achieve ongoing operating and CapEx cost reductions. Development is directed towards near-term profitable outcomes, enhancements for radiology use, automation of onboarding IMEXHS Cloud, and of the help desk, which is also expected to see the acceleration of software contracts not yet installed. It looks like we've lost Dr. Germán Arango's line. Please hold while we reconnect. Hello? Okay. We're back live? Okay. The joys of telecommunications around the world. I'll pick up from where Germán Arango left off. My name is Doug Flynn. I'm the chairman of ImExHS. I think if I pick up from where we're at, which was the refocused development program means that completion of the universal imaging platform designed to provide for medical imaging workflows are now deferred until 2023. The strategic vision, which Germán Arango articulated earlier in the year, remains the goal. The companies also tightened its working capital processes, and we expect the cost out program to be largely complete by the end of Q3. We turn now to our financial highlights on slide 10. We've achieved good growth across our key financial metrics in the first half of FY22, both on a reported and constant currency basis. Revenue of $9.5 million was in line with plan, 83% higher compared to the prior year and up 82% on a constant currency basis. Annualized recurring revenue of $20.5 million was up 61% versus the prior year and 60% higher on a constant currency basis. The increase in ARR reflects increasing volumes in radiology services, new contract wins in both customized solutions and the standardized software product offering, offset by the customer who ceased to service. Our underlying EBITDA loss of $0.4 million was $1 million lower than last year's number due to contracts coming in stream and some cost reductions achieved in the first half. At June 30th, 2022, cash was AUD 0.9 million. Slide 11 shows the revenue and ARR split between our two businesses, software and services. The balance includes ARR from radiology services of AUD 12 million and AUD 8.5 million from software. The software ARR includes AUD 2.8 million from 140 active ImExHS Cloud contracts and AUD 5.7 million from ImExHS Enterprise. Let's move to the business update and starting on slide 12. Sorry, Doug, I'm already here. If you want, I can proceed. Please pick it up. Apologies for the interruption in the call. Let us move to a business update, and starting with the slide 12, let me take you through what make us unique and our offering compelling. Our multi-tenant, end-to-end cloud-based software platform for medical imaging does well across every segment of the market. It covers the requirements of the high-end hospitals with integrated AI and advanced post-processing and strong visualization tools in the viewer. Being at the same time flexible and cost-effective for the SME segment. Rapidly deployed and integrated with third-party software, simplifying the integration into new environments. The disruptive business models have been the key for the success in the geographical expansion. To remind the shareholders, there are two separate approaches to suit product characteristics and sales. IMEXHS Cloud and IMEXHS Enterprise. Turning to slide 13. ImExHS Enterprise is highly configurable and easily integrated into hospital enterprise systems. The same at large university hospitals and multi-site healthcare organizations. The average contract life is around five years, and there are circa 100 customers across eight countries. We continue to see strong growth in overall studies and revenues from both new and existing customers. By comparison, on slide 14, ImExHS Cloud is a standardized radiology solution launched in May 2020. It is a unique and successful offering in an under-penetrated global market. ImExHS Cloud gives small and medium-sized customers low-cost, rapidly deployable imaging software. Importantly, it provides the same sophisticated capability to be found in the most advanced hospitals in the world to each and every clinic that take it up. ImExHS Cloud makes an important contribution towards the democratization of healthcare. At June 2022, 140 deals with a combined ARR of $2.8 million across 11 countries has been signed, including the U.S. and Australia. Distribution is mostly via growing partner network, which generated 85% of cloud sales in the first half of FY22. We continue to see a strong pipeline of new opportunities. On slide 15, we outline the attributes of our radiology services. There are several key differentiators of what we offer, and key among them is that we exclusively use ImExHS software, which drives efficiency and diagnostic capabilities. Our principal business model is providing outsourced radiology services for hospitals and other healthcare establishments. This is an end-to-end service. We are not the only operator in Colombia, but are distinguished not only by the use of ImExHS software. We do, for example, make our software available to competitors. also by the level of specializations and high academic profile of radiologists and residency training for three universities. A smaller but growing part of the business is external teleradiology services for third parties. This provides great flexibility to remote access to the highest quality radiology specialists to international clients at Colombian costs. Let us return to the first half financials, and I will pass you to Reena. Thank you, Germán. I will now run through the first half FY22 financial performance of the company, starting on slide 17, progress in ARR. ARR of $20.5 million as at June 30th was up 61% versus PCP. ARR of $20.5 million consisted of $12 million from radiology services and $8.5 million from software. The software ARR includes $2.8 million from 140 active IMEXHS Cloud contracts and $5.7 million from IMEXHS Enterprise. On July 1, 2022 the radiology business ceased to service a customer with a poor payment record, and the associated ARR has been excluded. The increase versus PCP reflects increasing volumes in radiology services, new contract wins in both customized solutions and the standardized software product offering offset by the customer that we have ceased to service. The chart shows annualized recurring revenue which is currently billing as well as that which is yet to commence billing in a lighter shade. Turning to page 18, the income statement. First half FY22 revenue of $9.5 million was up 83% versus PCP and up 82% on a constant currency basis. The software and services split of revenue is $2.8 million and $6.7 million respectively. Recurring revenue represented 98% of total revenue in the half. The underlying EBITDA loss which excludes costs in relation to share-based payment expenses, foreign exchange movements, and one-off costs was $0.4 million versus a prior year underlying EBITDA loss of $1.4 million. Slide 19, the balance sheet. At June 30th, the company had a closing cash balance of $0.9 million and net assets of $15.4 million. Intangible assets consisted of goodwill of AUD 5.6 million, AUD 0.9 million of customer contracts and software assets of AUD 2.5 million. The increase in the intangible assets reflects the continued investment in software development during the half. Trade and other receivables were AUD 8.4 million at June 30th. After reviewing overdue receivables, we do not believe there are any unprovided credit risks. On page 20, net cash flows in operating activities was AUD 1.3 million, reflecting continued investment in working capital. At June 30th, the cash balance was AUD 0.9 million which was after the purchase of equipment of AUD 347,000 for a customer contract for which equipment financing was approved in early July and is expected to be received in this quarter to replace the initial cash outlay by the company. Net cash flows used in investing activities include capitalized development costs of AUD 0.9 million and a payment for the RIMAB acquisition of AUD 0.2 million. Germán has outlined, our work on our path to profit is near completion and should be clearly visible in the fourth quarter. Moving to slide 22. On the third of August, the company announced that it had received binding commitments for AUD 2 million via a placement to sophisticated and institutional investors and was also undertaking a non-renounceable pro rata entitlement offer to raise approximately a further AUD 2 million. Both the placement and the entitlement offer are fully underwritten. The first tranche of the fully underwritten placement to institutional and sophisticated investors was successfully completed on the August 9th, having issued 1.95 million new fully paid ordinary shares at an issue price of AUD 0.48. The directors have agreed to subscribe for an aggregate of 2.2 million new shares under the placement, subject to shareholder approval at an AGM of shareholders to be held on twenty-seventh of September 2022. The entitlement offer is a pro rata non-renounceable entitlement offer under which eligible shareholders were entitled to subscribe for one new share for every eight shares held. The entitlement offer closed on twenty-fifth of August, and the results will be available on the ASX later this week. I will now hand back to Germán to take you through the strategy and outlook on slide 24. Thank you, Reena. Thank you. We We are in advanced negotiation on two material contracts expected to be concluded within Q3. As I have said, we will largely have reset our cost base by the beginning of Q3. The refocusing that has gone on will help us operationally at several levels. Together with the growth in the business, we are forecasting to be EBITDA positive for FY22 and importantly, monthly run rate underlying cash break even during this second half. We are very confident of the actions being taken to refocus the company, which will underpin a path to profitability and cash. Our software clients love our product, and we continue to take profitable share in our radiology business. We very much appreciate the support of our shareholders, and we aim to deliver for you. Thank you. I will now hand over to the operator. Thank you. If you wish to ask a question, please press star then one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star then two. If you are using a speakerphone, please pick up your handset to ask your question. Your first question today comes from Richard Hogue, who's a private investor. Please go ahead. Thank you. Could you provide some insight into the average revenue per contract for Aquila in the Cloud and why it seems to be continuing to reduce? If I look at the first 12 contracts for $400,000, it's an ARR of around $33,000 a contract. When you got to the sort of $2 million mark, it seems to average around $20,000 a contract. The last quarter's additional contracts have only had another $100,000 ARR, which would be around $3,700 a contract, or roughly a tenth of what the first quarter of sales was. Is that because you're reducing prices or because you're signing contracts with much smaller volumes at this point? That would be helpful to understand. Thank you. Essentially the average is still around 20,000. The fact is that the mechanism we use for calculating our ARR is including the average of the actuals from the last three months. Given we have been deploying several deals in the recent period of time, normally the customers, as soon as we install the first install the software, there is a gradual ramp-up in the numbers until they achieve their normal volumes. This incorporation of the technology creates a gradual increase in the volumes. They spend a few months to achieve this average, normal average for them. Given the ARR is taking into account the average of the actual from the last three months, there is an effect on the calculation of the ARR. Again, the average for the deals we have been closing, in general, is still around $20,000. Thank you. Even if there are no new deals in the next quarter, the cumulative effect from the deals you've signed in this quarter would still continue to increase ARR as their volumes grow. If I understand that? Yeah. The existing deals will keep growing. They will have the internal normal growing as soon as they are deployed. In the first initial months they start from low volumes up until they achieve the lower normal and average volumes for them. This will represent an internal growing rate for the already deployed customers. And the other element of the calculation of the ARR is an estimation of the contracts that are signed and not deployed. Given the number of non-deployed deals is becoming very reduced compared to the numbers of already installed and billing deals, the average of those installed is correcting the number or affecting the number. this number will experience an internal growth that will normalize the ARR as soon as the initial period of time happens. Thank you. You're welcome. The next question comes from Iain Wilkie with Morgans Financial. Please go ahead. Hi, Germán. Hi, Reena. Just a couple from me. If you could just walk through the cost out program and what this entails again, please. I was sort of just trying to understand the scale of the one-off costs versus what you're looking to achieve in annualized savings, just to get a sense of you know, where you got into underlying EBITDA positive versus the reported figure. If you could just sort of talk through that'd be great. Sure, Iain. Well, first of all, as we have said, our guidance is intended to be EBITDA positive for the year and to be cash flow positive or break even on the run rate basis in the second half. This is actually in cash, not in accounting numbers. It's a cash effect that we're expecting to have. The plan is based on protecting the short-term sales pipeline and the requirement from the market in the short term. Most of our efforts are now focused on selling what is active in our pipeline and close to be delivered, to be signed. This attempt is backed by protecting the software development roadmap in everything related to this short-term plan, and in parallel to improve our post-sales support or help desk in order to protect our existing customers. We are also aiming to enhance our sales capabilities and technical capabilities with the automation, training, and several other strategies or activities. The important thing behind this is that we are maintaining the strategic view and plan that we have presented to investors early in this year. We may have some delays in some specific products, but the overall effect is that we have been able to reduce our cost base, protecting the short-term sales pattern, and also protecting our existing customers with an enhancement in the help desk and post-sales service activities. The overall effect, the progress of the plan, we are midway, we can say, or a bit more than midway. In the first half, we implemented probably a third of the total cost reduction. In this third quarter, we have been able to progress in the two additional thirds. Very soon we will have the plan fully implemented with the cost reduction having effect on our numbers. Okay, great. This one might be for Reena, but you sort of spoken before, but it doesn't appear at this stage to be any unprovided credit risk. If you can just touch on the receivables profile, I think you had around $6 million in that balance, and what your the general expected credit loss rates are based on those age brackets. I know over the last couple of years, they have improved significantly, but just sort of keen to hear your thoughts on where that sits now. Thanks. Hi, Ian. Yeah, they have improved significantly, and we've provided, I think $168,000 on the current balance at the moment. We've got a $168,000 provision on $4.7 million. That is done on a, you know, on a, especially in the radiology services business, it's done on a, you know, customer by customer. But you know, a small number of customers we go through and review that. Then on the software side, there's you know, we have a calculation that we do, you know, if it's over 90 days or 180 days, we've got a percentage that we provide for those. The provision at the moment is adequate for the $4.7 million of receivables that are sitting there in the current, actually, I should say. There's a portion of receivables in the non-current. The provision is the $169 thousand is adequate for that balance. Okay. That's awesome. Just last one from me. Germán, you sort of flagged those two major contracts coming soon, I think it was a couple of weeks or months ago. You're sort of still looking at third quarter. Does that sound about right? Yes, we are in a very advanced stage in both. We are in final discussions. This is what we expect. As always, with material contracts, sometimes there are delays in the very end of the process. As we have said in our guidance, this is our expectation to happen this within the quarter. Okay. Were these contracts based on a tender process or is it inbound or outbound? How are these ones sourced? One of those is a tender process, and the other one is a like a private RFP that we are already in the final stage. Right. Thanks. Thanks for that. That's That's it from me. Once again, if you wish to ask a question, please press star then one on your telephone and wait for your name to be announced. The next question comes from Nick Warrilow with 708 Capital. Please go ahead. Good day, Germán. Turning to slide 11 in your presentation deck. Question around billing versus not yet billing. Software revenue came in at $2.8 million for the half with an ARR of $8.5 million. I'm assuming given it was not, given the revenue recorded was not half of your ARR, that the difference reflects roughly the not yet billing component. If I flick that over towards radiology services, we record the revenue greater than half of your ARR. There's very little not yet billing in that component of the business. Is that a fair assumption? Hello, Nick. Yes, absolutely correct. In the radiology services side, everything is already deployed and billing. Sometimes it happens that the average of the last three months that we use for the calculation of the ARR is higher than the expected ARR. So you may have a bigger number. On the software side, definitely we have a group of deals that have been closed, signed, and are in the process to be deployed. Those are the not yet billing. The gap between the annualized revenue versus the ARR is. It represents that component. Okay. The software division, as you've broken it down here, should I assume that is 80% gross margin type SaaS revenue or not? Most of this is pure software. We have some enterprise deals with a mix of some pieces of hardware diluting partially the margin. Yeah, most part, the gross part of the software ARR has this financial model or numbers, yeah. Okay. Can you give me ballpark what sort of gross margin is attributable to that? You know, I won't hold you to it, but just a ballpark number. 60%-70%. From that, I don't have that number in the top of my mind, Nick. But it's something that we can review and send it to you. Okay. Because I'm trying to build a bridge to profitability here, right? Because I've got the businesses having, call it 4 divisions, your medical software imaging, your radiology services, your corporate overheads, and then you've got an R&D/sales division. If I can do your EBITDA contribution from imaging at sort of, you know, 70% gross margin, that's gonna give me kinda, what, $6 million EBITDA contribution from that division. 25% on services gets me to, you know, another $2-$3 million on top. I'm trying to work out what are your corporate overheads and what's your annual investment in R&D/sales as the non-revenue earning components to the business. Well, this is something that we have not provided guidance that we have not provided. Again, what the plan for the current year is that we are reusing cost base from the software development part essentially and from research and innovation. Let's say that is our group that is aimed to deliver some new software functionalities. And just taking out those elements, we are expecting, as we have said, to achieve the break even in the second half. This is what I can say from, let's say, avoiding any incorrect guidance, because we have not provided this detail of a split of our cost structure. What I can confirm you that is that the software, pure software is as you said, 80% gross margin. The radiology services is around 23% gross margin to 25%. When we have software plus services or plus hardware, we have outcomes that are creating a dilution of the margins from the software. This is what I can say. I don't know if Reena, you want to add something on this. Right, Germán. I think on the medical imaging software, as I said, $8.5 of the ARR is $2.8 for our kind of software as a service or the ImExHS Cloud business and the balance of ImExHS Enterprise. You know, the margins are different on those, you know, revenue types, I guess. You know, the software as a service of $2.8 million is, you know, more towards the 78% Germán's talking about, and then the enterprise can be at a lower rate. That's correct, Germán, isn't it? Yeah. Yeah. Well, going back years ago to when this business was just recently listed, you did provide a gross profit figure, right? Which is pretty illustrative of the margin that you're making, then we got to take your overheads out, considering that, because I think I'd like to see to show your ability to create operating leverage. It's all a bit lost in translation here. Sorry, Nick, can you say it again? 10 years ago. No, sorry. After you listed on the ASX, you did provide. Yeah. In your profit and loss statement, a gross profit line or a cost of goods sold. That is no longer there. Trying to work out what sort of margin you're making across your service offering is very difficult for investors to gauge. If you could reconsider that, I think that goes a long way. Yeah. Yeah, we will definitely consider it, and thank you for the suggestion. One of the things is that given that we have this mix of several elements with different margins, we are in the process since we did the acquisition of RIMAB to split out each group as a separated element to make it easier for the investors and for our operational purposes as well to be understood. We will take this consideration. Thank you very much. Okay. Well, I think that's it from me. Thanks for your time. Thank you, Nick. There are no further questions at this time. I'll now hand the call back over to Dr. Germán Arango for any closing remarks. Thank you very much, and thank you all for taking the time to join us. We are excited about the year ahead and look forward to updating you on our progress. Enjoy the rest of your day. That does conclude our conference for today. Thank you for participating. You may now disconnect.