I believe we can start. Hello, and welcome everyone to Banxa's webinar today. My name is Holger Arians. I'm Chairman and CEO of Banxa. Thank you everyone for joining from all around the world, I believe. I see a number of familiar names. Thank you for taking the time and the interest in our presentation today. Today we're going to present you the financial year 2023 results and Q1 FY 2024 results. Thank you. Zafer, if you can go to the next slide just to share who's presenting today. Besides me, I have Zafer Qureshi, who's Executive Director, Head of Corporate Affairs at Banxa. We have Josh D'Ambrosio, our Chief Commercial Officer, and Sean Moynihan, our COO and Interim CFO. The agenda today, I'm going to start with a short business update. We just had our last webinar in November, where we presented the FY 2022 results after the delayed audit. Today, Sean is going to walk you through our audited 2023 results and the unaudited Q1 results of FY 2022, 2024, excuse me. And then Zafer is going to touch on the path to profitability, which we've been spoken to earlier, and then we'll start with the question and answer session. If you have any questions during the webinar, please just hold them until the end, put them into the chat window or the question window, and we'll make sure that we have enough time to answer all of these. Okay, so just wanna start with a quick business update. Banxa is the leading on and off-ramp in the world. What that means is we're integrated with major crypto platforms like MetaMask or Trust Wallet or OKX, crypto exchange, and hundreds of others, where their users, their hundreds of million users, can basically just convert their fiat currency to cryptocurrency. For everyone who wants to do something in crypto or digital assets, their journey usually starts with fiat currency. So think about your Australian dollars, Canadian dollars, that you want to convert to Bitcoin, for example. Banxa is doing that inside all these platforms. We can do that because we have all the licenses and the payments, we have all the fraud controls, and the technology, most importantly, to source these coins, and settle them directly into your wallet. So that's what Banxa does, and we've been doing this very successfully. The business is now 10 years old, and we've transacted over $3 billion in that time. We have over 1 million customers and 5 million orders processed. In fact, we're processing 1 new order every 18 seconds, and that's still in a market which is only slowly warming up. I mentioned the partners that we have. Again, compared to the last bull cycle, where we had less than 100 partners, we now have 300 partners. So we're really everywhere. There are only a few big ones missing that we don't have yet, but we're obviously working on those. But you can see that Banxa has made great progress on that front, and that was always the goal for us to be pretty much everywhere. And Banxa is now a very well-known entity in this space, and all these major crypto platforms around the world are relying on our infrastructure. We continue to acquire licenses to be able to do what we're doing. The crypto money transmitter licenses in the U.S., for example, and other places in the world. So that is a very strong point of Banxa, and then we're obviously trying to offer as many payments as possible so that people have a good way into this industry, and out as well, 'cause we're doing off-ramping obviously as well, where you can convert your crypto back to fiat. Next slide, please, Zafer. I guess on the corporate side, we've removed the Management Cease Trade Order that was in place for two months' time while we were completing the audit. We have changed auditors after what happened with the FY 2022 audit. We've now new auditors that needed to get their head around the business, but also really didn't leave any stones unturned. So that was a very thorough review, but it has taken more time because it was the first one, and Banxa was still sort of processing the learnings from the FY 2022 audit, where regulation has changed and suddenly our processes had to be updated as well. So we're in a much better shape right now and have learned a lot, have implemented a lot, and part of that is also that we have now appointed Patrick Maguire as our official CFO. Sean Moynihan, our COO, has taken the role in the meantime and has done an incredible job of just jumping in without much background, taking over from the previous CFO, who left a little bit unexpected. We were very happy that Sean took this over and really uncovered many, many things that should have been done much earlier. So we're very happy with the outcome and the stability we have created for the future. So this chapter is closed. We're excited about the shape we've brought Banxa in on the financial systems and processes front and the structure, obviously, with our people. I guess on the corporate front, we have continued our turnaround. Zafer and I have really done a lot of heavy lifting over the last quarter. There was a capital raise in a very difficult market still. We have bought out the convertible note as a next step after the capital raise, and we've initiated board changes, and are continuing to look at the board composition, obviously. And then we're also reducing our cost of capital, the loans we're having, and just making things much more efficient. I think what's important is just to be patient on seeing these changes, because Banxa, with all our licenses, being a listed company, having gone through hypergrowth, it takes a long time to turn the ship around. And I really just would like to ask our shareholders, potential shareholders, to have the patience. There are great things happening, we're certainly seeing the market warming up, and we are very sure that the things are servicing very soon, and you will continue to see those results. And we're very excited of what we have achieved, but also what's in store for the next few months, and the next few years as well. I guess on the partner front, we have continued to onboard the major partners of the industry. Trust Wallet is probably the biggest wallet, together with MetaMask out there, with tens of millions of users. And Coinbase, we're on an aggregator called Onramper, who has integrated with Banxa, so we're now indirectly integrated in Coinbase, but also talking with them directly as well. So, I think that just validates the quality product we've built, and we've always focused on the product. We did have to get other things in the house in order. I think we have made great progress, and continue to do so. And we're getting a lot of good signals from the market as well. So, earlier this month, we had the Spot ETF approvals in the U.S., which sent a really strong signal to the market. What that helps with is just a much better user experience if people wanna get into this space. Much more trust and clarity on the regulatory front, which we've always waited for. The next milestone or event to look forward to is very soon as well, and there's usually a build-up in the market. The Bitcoin halving in April that usually gets more people excited and get back into the space to trade. So we are quite happy that the last two years are now behind us, and that there is an exciting time ahead of us, and hopefully our share price will also reflect that very soon, with all the work we're doing. So please stay tuned for what's going to come, and trust us on the work we've done that you might not see yet. But there's a lot going on, and I believe we got the message of there needed to be change, and we've done it. We continue working on it, and we're happy with the progress, but we're still, there's still a long way ahead of us. But we do have the confidence that we'll get there. And with that, let's get into the numbers. Sean, I'll hand over to you. Thanks, Holger, and hi, everyone. Thanks for joining. So yeah, excited to show you the numbers for FY 2023 and first quarter of FY 2024. Just to clarify, when we're talking about FY 2023, we're talking about the period of 1 July 2022 through to 30 June 2023, so we're working on the Australian financial year and not calendar years. Just wanted to clarify that in case anyone was uncertain. We presented an estimate for FY 2023 in the last webinar. Now we have the final audited numbers as Holger mentioned, that was completed the end of December. These are the final numbers for FY 2023. But they haven't really changed materially to the estimates we presented in the last webinar, except for perhaps the revenue item, and I'll talk to that a little bit as well on this slide. But just starting at the top line, the total transaction volume, so that's the total sales we process, otherwise acronym to TTV, is a really, really important metric for us, but won't be the most important metric, and I'll get to that in a second. So we did see a decrease in that, and quite a significant decrease in FY 2023, and that was driven by the contraction in crypto volumes. You know, through the bear market and, you know, many of you may already know, the crypto markets go through four-year cycles, two years of bull market and two years of bear, and we were in the bear market in FY 2023, and hopefully coming out of that pretty soon. So we did see a reduction in the TTV, but at the same time, there was an increase in the revenue, and you may be asking, you know, "How could that happen?" Quite simply, it's just how the revenue's recognized. And I talked through this a little bit in the last webinar, but realized some people may be joining in and not seen that one. But basically, we can recognize our revenue on two bases. One as an agent, and when we act as an agent, the revenue recognized is just our commission, and one as a principal, where we recognize 100% of the sales. So what has been happening throughout FY 2023, and it'll happen more in FY 2024, is we're acting more as a principal. The determination when we're a principal is essentially we're selling our own inventory. We're selling coins that are in our own wallet, which we have the keys to. We've been moving to doing that more, because one, it's more efficient in terms of settling to customers. The fees are lower if we settle from our own wallet versus a third-party wallet. And two, the security aspect as well, and I'm sure everyone's pretty familiar with FTX, and what happened to people holding funds in FTX, and still not being able to access those funds. So it's sort of twofold, and so you'll see this revenue item go up over time. And it can be a little bit disproportionate to the movements in the TTV. Because of that, what we really focus on, and we think are the two core metrics, which are the ones in green here, is the gross profit. So once we've netted out all the cost of sales, what's our gross profit and the net take rate? And we've been focusing really on trying to grow these metrics. Now, in FY 2023, we weren't able to grow the gross profit, unfortunately. But you can see that the decrease in it is only 17%, whereas the decrease in the total sales is 54%. And the reason for that is in the next line, you'll see the net take rate, that's gone up 80%. So we've been focusing really, really hard on being more efficient, focusing on reducing our cost of goods sold. And yeah, we're seeing great results there. And we're sort of getting to the point now where we, we'll definitely still see improvements, and we saw some improvement in Q1. But it's probably getting to the point where the improvements are gonna start to become incremental. We're not gonna see these huge uplifts in the net take rate. But what's really important is that we've got it to this point now, 'cause as Holger mentioned, we're expecting the market to really pick up, and we wanna be, you know, the most efficient we can be during that time. We saw a little bit of a decrease in our operating expenditure, so we have been doing some restructuring, and that went down by 21%. We saw a reduction in our operating income—sorry, an increase in our operating income and a reduction in our operating loss. You know, largely due to the operating expenditure being a little bit more efficient. And you see that through into the net loss and the Adjusted EBITDA. Cash went down a little bit, and that was really, you know, funding the product development, so we could enter new segments, such as the wallet segment's been a real core area of focus for us, and customizing our product to better suit that segment. And it has worked really well, which we'll see in the next slide. So now if we compare Q1 of FY 2024, so 1 July 2023 to 30 September 2023, to the corresponding period, the financial year before, we've had a massive uplift in TTV. You know, a massive uplift in revenue, but, you know, not all that's due to the increase in TTV. Like I said, we've been moving more to doing transactions on a principal basis, so we will naturally see that number go up a lot. But really importantly, we've seen a really big increase in the gross profit. And again, the net take rate has helped, but it's been a you know, twofold increase in the TTV and increase in the net take rate. A marginal reduction in our operating expenditure, so we're always working on, you know, how can we be more efficient there? And we want to always try to drive that down quarter on quarter. But yeah, at the same time, it may go up if we see opportunities in the market to grab more revenue. The operating loss went down because, you know, the gross profit has gone up. I should also mention in the prior financial year, in FY 2023, we did have AUD 3.2 million of other income, which you'll see in the P&L, and that was from a sale of a non-core business asset. So, you know, in FY 2023, that did reduce our net income and our net loss. But you'll see here that when we do the quarter-on-quarter comparison, and that sale of that asset happened in Q1 FY 2023, so that's why the net loss is lower relative to Q1 FY 2024, 'cause in Q1 FY 2024, we didn't have the sale of that asset. And, you know, the Adjusted EBITDA was lower in FY 2023, 'cause it was really boosted by the sale of that asset. Again, cash is down a little bit, but that's been really, you know, investing in the sales, you know, particularly in the wallet segment, which has driven the TTV and GP growth, so it has had a really great return on investment. And that's everything. Yeah, again, put your questions in the Q&A if you have any. Great. Thank you. Thank you, Sean. So on to, I guess, you know, how are we tracking forward? You know, well, since I joined as an Executive Director, our big initiative has been to get to profitability and get there as quickly as we can. You know, in this market, it's very critical that we operate, you know, within our means and are cash flow positive, because companies that are burning cash quite. We want to ensure that we're self-sustainable and moving forward. Excited to share with you guys that, you know, all the effort that we've been putting in optimizing our costs, getting more efficient over the last 3-4 months, you know, we're starting to see the fruits of all that effort. In January of, essentially this month, we are on track to be cash flow positive. Super excited about that. Just, double-clicking into it, how we've been able to do that, the cost optimization efforts. You know, since, when you compare us to Q1, we've really tried to hammer down on, you know, trying to become as lean, as we can, and reduced our costs, overall by 22% quarter-over-quarter. You know, you know, some of the efforts that have gone into that, like the key areas, so we're trying essentially restructuring our debt, you know, buying out the Lind secured convertible note, lowering our costs of liquid facilities, right-sizing our payroll, and, you know, enhancing a lot of the controls, and reducing unnecessary third-party processing costs. And then generally, just you know, in terms of our overall financial operations as well, ensuring that we have the funds in the right jurisdictions, the right bank accounts for you know, how the TTV is being processed in all these different areas. So that's, that's been you know, super critical in getting us to this point. And then, as kind of Sean has mentioned, you know, over the last 12 months, there's been a massive effort in trying to make sure that our net take rate, you know, we're essentially processing our transactions as efficiently as we can. And that's been a combination of product enhancements and generally ensuring that we're, you know, having the liquidity available where it needs to be, minimizing FX rates and things like that. So, you know, greater focus on the key markets and the key partners. Ensuring that we're using the right, you know, providing the right payment method to the customers, you know, through our partners, and ensuring that we have the adequate banking relationships in all the different jurisdictions that we operate in. That just ensures lower banking costs and just overall processing costs. So, you know, just that as we kind of look forward to 2024, really optimistic that the market is going to be on an upswing. And we wanted to really ensure that we're in a position to capitalize on that. But if it doesn't pan out, you know, based on you know, our expectations or the timing isn't right, that you know, we don't have a need to, or we're not continuing to burn cash and you know, we can essentially operate within our means. So super, super excited about 2024. You know, all the work that we've put in, there's you know, lots of you know, return that we're still yet to see from all our efforts. But you know, I'm really confident that 2024 will be a big year for Banxa and obviously all our shareholders. Thank you, guys. Appreciate, your contribution here. Let's go to the questions. There are only three questions. If there are any other questions, please, add them to the Q&A section here. We'll start with the first one. "Gentlemen, an update on the company's biometric suit, please." So for those of you who don't know, we received a legal claim out of the state of Illinois in the U.S. We've seen many other crypto companies receiving the same claim from the same claimant. We've identified a number of errors with this claim, and we formally responded. But other than that, there is no real update. And we'll just have to wait and see what the next steps are. But we are not very concerned about this. Zafer, you might be best placed to take the next one. "What are concrete steps Banxa is going to take in 2024 to increase stock price, shareholder value? Yeah, definitely. So, you know, generally, you know, I think the key thing is that if we create a good, strong, foundation for the business financially, in a, you know, be in a very strong, position, the share price naturally will reflect that. I mean, but when it, when it comes to the share price, there's, several factors that drive that. Some that are in our control, others that are driven by generally the market. So, you know, I think we're doing, all the right things, to move the levers, that are in our control. You know, making sure that financially, you know, first big thing is that we're, we're, operating, in a cash flow, you know, path moving forward, positive, cash flow. And then beyond that, I think the other things really is to now tell our story to all the investors out there. Really get out there in front of the right investors, and ensure that, you know, we get back on the radar. Because obviously, you know, the with the CTO, it we essentially fell off the radar of many investors. But now as the crypto market is picking back up, there's interest starting to come back into the sector. You know, it's important to basically get back on the radar. And, you know, we're gonna be doing that over the next couple of quarters. So super excited about that. Thank you, Zafer. The next question is, "What's the progress with U.S. expansion? There was a lot of news initially, and now there is radio silence. What is happening with Banxa and U.S. operations?" Josh, you're probably best placed to answer this one. Yeah, look, the U.S. launch is something we're very, very excited about. We talk about quite a bit. Obviously, myself being on the commercial side, I see immense opportunity and demand in that space. In terms of timing, that's something we're actually just working through at the moment, and we're hoping to come up with our formal plan on when that should exactly land. In the meantime, just worth noting, we do continue to serve the U.S. market at a large extent via our third-party provider, and looking to unlock further opportunities when we eventually do go live with our own infrastructure. Yeah, and I think today we have 34 of the money transmitter licenses, so we're still waiting for a few more there. But yeah, definitely gonna be activated this year, and we're very excited about it. But there's a lot of heavy lifting to get that done. Okay, and then the next question is, "Hi, guys, I didn't understand the Q1 FY 2024 revenue jump from AUD 13 million to AUD 85 million." That is a very good question because, perhaps, Sean, you can explain again how this revenue recognition is working there. Yeah, yeah, definitely. And it's a good question, and it does look like a bit of an anomaly, but it really just comes down to the accounting, you know, recognition of revenue. And as I described before, there's two types. So there's the, you know, are we acting as an agent, so selling someone else's inventory, or are we acting as a principal and selling our own inventory? Yeah, and this is similar to other, you know, online platforms. So, you know, Amazon would have the same considerations. If they're selling their own stock, they would be recognizing that revenue as principal, and if they're selling someone else's, it'd be on an agency basis. So if I just run through an example, might be the easiest way to explain it. If a customer buys $100 of Bitcoin from us, if we send them that Bitcoin from our own wallet, so we've got Bitcoin sitting in a wallet which we control, which we have inventory risk on, and we have the keys to, that would be, we'd be acting as a principal, and we'd recognize that full $100 as revenue. Now, if we settled that transaction from a third party's wallet, we'd be selling their inventory, and we'd only recognize our commission, which, you know, we went through before the net take rate's around about 2.8%. So we'd only recognize $2.80 as revenue. So what's been really happening is we've been having more transactions where we're acting as a principal. We've been settling more customer transactions from wallets which we control, and we're settling more transactions using our own inventory versus selling somebody else's. And as I mentioned before, the reasons for that are twofold. One, it's cheaper for us to do it, so that's what helps improves our net take rate. And two, it's more secure, 'cause we're the key holder, so if there can't be that insolvency event like in FTX. So we're trying to do more through our own wallets to provide, to secure up our funds. So hopefully that explains it. I know it's a little bit confusing. It's a relatively new thing in accounting still, and the standards are still being clarified, but it does create a bit of confusion, so hopefully that helps explain it. Yeah, and just one more thing to add on that. I, you know, generally, you know, our revenue is going to be volatile just because of the mix between agent and principal. The typical standard metric to be tracking, which we're going to be shifting more of our focus on in terms of our reporting, is the gross profit and the net take rate, which is generally kind of the standard, you know, metrics within the payment space. Yeah. Thank you, and here's another one: 'How will the change in gross profit in upcoming quarters affect operating costs? Will increased profit have a significant impact on costs, or will costs remain stable and profit go to the bottom line?' Perhaps, Sean, you can take this one. Yeah, yeah, another good question. So, most of our, our volume-based costs sit in our cost of goods sold, which is sitting above the gross profit item. So we should have already netted out those costs when we get to the gross profit line item. Now, there's a couple exceptions to that, and there's a couple software subscriptions, but they're, they're relatively small, like, they're, they're less than AUD 100,000, and I, I wouldn't expect their growth to be more than AUD 100,000 in a month. That would increase as our volume increases. Probably the main item, sitting below the line, sitting below the gross profit line, that, that goes into our, net outcome is, interest costs. So, you know, if the volume scales quickly, we'd need to source more liquidity to service that volume because of the delay in fiat settlement times over the weekend. So we would expect the interest costs to probably be the main item to go up, but it would be, you know, disproportionately less in its increase than the increase in gross profit. So yeah, we're now at that point where as the volumes, the TTV volumes go up and the gross profit goes up, the majority of that's gonna be going to bottom line. Yeah. Thank you, Sean. It's, it's scalable. There are obviously a few operational costs that need to keep up, but overall, this business is highly scalable. We've seen it in the last bull market where we didn't have all these efficiencies, and now, this is definitely going to reflect in the bottom line. So we're very excited about, the market warming up as well, with this, all the work we've done internally. Sean, there's another question for you: "Is there a way to only use our wallet instead of using third-party wallet partners to increase TTV? Yeah, look, we can use our own wallets. Now, that won't increase TTV, it would reduce our costs, and make our funds more secure. It just requires building some infrastructure, and there's a cost to building that. So sometimes it's better to use third-party solutions, particularly for coins or blockchains which haven't got a lot of adoption, so there's really not the payback for us in building that infrastructure for these coins and chains. So we will outsource to third parties in that instance. But yes, we wanna get to the point where, you know, the vast majority are processing through our own wallets. But yeah, that itself won't have an increase in TTV, it should help the GP and your bottom line. Here's another one. We've seen Bitcoin, Ethereum, USDT, and USDC volume increase 50%-80% in the October to December quarter, versus July to September. Are you seeing similar increases in TTV? Okay, so I think that's the market increasing, versus is our TTV also increasing? Perhaps Josh, you can take that one. Yeah, it's been really obviously quite good seeing that the market pick up in the last quarter or two. Particularly in that Q2, we certainly saw the broader market increase, as you've outlined there. In terms of our specific TTV, we have seen increases, we've seen increases in number of new users. In terms of, is it comparable? It's probably not quite to the extent that we've seen the growth in the overall crypto trading volume, and that's probably for a number of reasons. One is, it's the type of users that are getting back into this space. We've seen a number come in at the institutional level. And then number 2, a lot of the work we've been building in the non-custodial space, we're expecting to pick up further as that next wave of adoption comes through into retail. And so we're probably projecting the greater growth to come through 2024 in that space. But nevertheless, we have seen, yes, some growth across Q2 compared to Q1. Thank you, Josh. There are no more open questions at the moment. If there's anything after the webinar, please reach out to Zafer or myself. We really want to communicate much more proactively. We would like to hear from you. And again, we hope that you see the work that has been done at Banxa, especially over the last couple of months, how we are really trying to turn the ship around for hopefully a better market in the next two years. But even if the market is still a little bit slower, Banxa is getting in a really strong position. And we believe that we're building critical infrastructure for a space, which is, I always call it a generational event. It's as big or bigger than the Internet. And what we are doing is building this critical payment and compliance infrastructure, and I think we've proven with all the integrations that we have and the users and the partners that we can really deliver. But we also have to work within the constraints we have for a public company in a very new space. We have many, many licenses, so we can't always move that quickly. But there's been a lot of great work done, and we expect for this to continue, and for all our shareholders to see the fruits of that. So with that, please... What's another question? Let's quickly answer this one as the last one. Will U.S. expansion make a significant impact on TTV, considering the U.S. market is already being served through a third-party partner? Is there a set date for the expansion? Josh, we'll throw this one to you, and then we'll, I think we'll finalise for today. Yeah, sure. So for the U.S. expansion, as outlined, we do already serve that market, and that provides us broadly access to provide our products there. The opportunity for us is really, and we believe this industry does scale quite to quite a large extent over the coming years. It really offers us the ability to reduce costs in that market. The way we currently operate is we do get aggregated with a number of other providers, and so by providing those reduced costs, we do expect to see higher top-of-funnel growth from new users and return users, which would therefore drive a lot more TTV. The other key areas which are really important for us is it's the opportunity to add new revenue streams. And so there's a few different areas that that can get driven from. It can be from new coins and chains and other sort of features that we can't offer in the U.S. market, which we do offer globally. And there is quite a significant demand from a number of partners asking us to provide these products in the U.S., which we're currently unable to do so. And then the second area is a number of new products that we're working on in the background, to see how we can unlock those through that U.S. expansion. And then probably the third part worth noting is the U.S. regulatory environment is obviously always evolving. What we sort of foresee over the years to come is that hopefully we do get that greater clarity. But more and more, it's gonna be important to be sitting on top of our own licensing for any company operating at scale in this space. If you are not, and you do rely on that third party, you're going to be coming up against some really intense competition from those that do have the local infrastructure, as they can offer, will be well built to offer a much more seamless product. So we think it's just from a revenue protection point of view, really important, and equally on the TTV revenue growth, as well as the cost reduction in that kind of growing market. And then, sorry, again, in terms of that date start, that's exactly what we're trying to work on in the background, probably over the next coming weeks. When do we formally want to sort of set that go live, at least internally, and then be communicating that to the greater market? Awesome. Thank you, Josh, and thank you everyone at Banxa for presenting today. Thank you to our shareholders for dialing in. Again, reach out for any questions to Zafer or myself. I'm very happy to answer any of your questions or address concerns. Again, overall, we're really excited about the change we've brought and what's ahead of us, and hopefully also a market that is looking much better this year than last year. Thank you, everyone. Goodbye.