We can get started now, Andrew. Good morning slash afternoon, everyone. Thank you very much for joining us today. I'm Robert Kaul. I'm the founder and CEO of Cloud DX, and I'm very pleased today to be sharing with you the earnings report for fiscal year 2023, and all of our numbers and stats up till December 31st of 2023, and some comments on recent announcements that Cloud DX has made in 2024 as well. With me today is our investor relations manager, Andrew Reid, who will be handling the slides and also helping me with questions at the end of my presentation. I'd like to remind everyone that certain comments made or answers to questions that may occur on this call are subject to regular caveats concerning forward-looking information that is on the screen, and also available in our investor presentation on our website, and in our most recent MD&A, available both on our website and at SEDAR. Okay, so the agenda today is a quick review of Cloud DX business model for those who are joining us and may not be fully cognizant of how Cloud DX works. And then a detailed review of the 2023 financial statements and numbers, followed by a discussion of some subsequent events that have occurred in 2024, and then, time permitting, a time for questions. Questions may be submitted through the Q&A function at the bottom of your screen. If you can please identify who you are and where you are, and or where you're from, rather, when you're asking that question, it would be most appreciated. If we don't get to your questions today, Andrew and I will follow up later in the week. Also, just to note that this presentation is being recorded, and within an hour or two, it will be posted at the IR page or the investor page at clouddx.com. Okay, so just to review for everyone, Cloud DX is primarily a subscription-based or SaaS-based enterprise software business. The primary source of revenue at Cloud DX is subscriptions to our connected health platform. This is a platform that monitors patients remotely at home and provides a two-way link between those patients and their caregivers. I just want to share with everyone, you know, a few points about that. First of all, that monthly recurring revenue, which is the source of this subscription revenue, is high-quality revenue, with high gross margins of approximately 90% or higher. We are a B2B, B2G, or B2A business, B2A being academic customers, academic medical centers. Our contracts are typically 2-7 years long. They typically renew. We have an over 93% contract renewal rate, and at this point, on average, our per-patient or per-user monthly recurring revenue is between CAD 49 and CAD 127. To put that into context, a good way to think about that is that we make about CAD 1,000 per patient per year, or annual recurring revenue. About CAD 1,000. Fluctuates depending on some of the hardware costs, as you see here, also some service revenue and so on. So that number actually does change, but a good rule-of-thumb number is approximately CAD 1,000 per user, per year. In addition to that subscription revenue, we have 3 other revenue sources that you'll see in the financial statements. We have product revenue. The patients who use our platform are actually prescribed a kit of devices that include Health Canada-licensed and FDA-cleared medical devices like blood pressure cuffs, pulse oximeters, glucose meters, and also thermometers and weight scales. And they're interacting with Cloud DX through an app running on a smartphone or a tablet, and that tablet is sometimes part of the kit. All of that is prescribed by the physician to the patient. The patient doesn't pay anything for that. Then they go ahead and use that technology to communicate and to, in an autonomous way, manage their health at home. In addition to the hardware revenue, where we make about a 20% margin, we have a growing business of services and integrations, and that business in our financial statements is under the professional services and other revenue lines. And then the final source of cash at Cloud DX is government funding. This is in addition to the revenue contracts we sign with government agencies. This is non-dilutive cash that comes to the company, primarily for research and development purposes. We have received over CAD 6 million in cash, like that since we were founded, and at the moment, we're averaging a little under CAD 500,000 a year in non-recurring, or rather, a non-dilutive cash, and that has a separate line item on our financial statements. So let's just share quickly, why is the demand for remote patient monitoring and virtual care, why is it growing so fast? The reason it's growing so fast is because there are value propositions here for all the parties within the value chain in healthcare. Patients really, really like using Cloud DX technology. We have an over 95% patient satisfaction rate, which is the highest we're aware of in the entire industry. Because they get better outcomes at home, they feel in control of their health, and they know that they are avoiding hospitalizations, they're avoiding emergency room visits, and they're, in fact, in many cases, extending their lives. But healthcare providers, like doctors and nurses, respiratory therapists and other caregivers, also really like using technology by Cloud DX. It makes their jobs better. It makes it more efficient. A small team of caregivers can care for a large group of patients. That efficiency means that they're getting more work done. It also makes their lives easier because it automates a lot of work that they would otherwise have to do manually. And the third benefit that flows to a member of this sort of continuum is the cost savings that comes from these efficiencies, and that goes to the payers. In the Canadian context, payers are provincial health authorities and provincial ministries of health. In the American context, payers are insurance companies, and Medicare and Medicaid on the American public healthcare system as well. This care is more efficient. It means that the same amount of dollars is delivering better care for everyone, and that is why we're seeing such a huge spike in demand, as we'll see going forward. So let's now talk about highlights from 2023. I'm going to start with subscription revenue. We saw a 69% increase year-over-year in subscription revenue. So just to, again, wrap this up in a bow, every contract we sign at Cloud DX grows our subscription revenue line. Every contract includes patients that come on our system that are paying that monthly recurring revenue. Contracts at Cloud DX grow organically, in the sense that existing customers add more patients organically on an every year. And then, of course, every new contract we sign adds more patients on top of that. So this subscription revenue line is the endless growing snowball rolling down the mountain that is really starting to pick up speed now, and this 2023 number of 69% increase is a good example of that. On the product side, we increased product revenue by 15.4%. Product revenue lags a little bit behind subscription revenue because product revenue is mostly new contracts. When we sign up a new client, they need a certain number of X hundreds or sometimes thousands of Connected Health kits to give those patients, and most of our Canadian customers pay for those kits upfront. Most of our American customers rent or lease those kits from us and amortize the cost of the kit into their contract. So this product revenue you're seeing is mostly kits delivered to mostly Canadian brand-new Canadian clients. The third item on the agenda is professional services revenue. Now, this is something that's kind of interesting, because professional services is a basket of deliverables that we have. The big ones include enterprise license fees, just to use the platform itself. We also charge for integrations into electronic medical record systems, and that is a growing business that we're charging more and more for every quarter. We also charge for customizations, new services, new features, things that clients ask us to do for them, and then we typically are able to do that, and then turn around and sell those new features to our existing customers as well. So this is a great example of how fast this business, this part of the business, is growing for us, a 436% increase in professional services revenue. We believe, as 2024 rolls around, or continues on, that we're going to continue seeing growth in this particular line item. That means our total revenue for 2023 increased by 55.4%, from CAD 1.116 million to CAD 1.811 million. That's obviously a terrific number, it's great to see, but the more important number is the even higher increase in subscription revenue. As you see our subscription revenue increasing faster than our overall revenue, you know that subscriptions are becoming a larger and larger part of our overall revenue mix, which means that in the future, that snowball rolling down the mountain continues to get bigger. Just touching on government, government financing for a moment, as I mentioned, our government grant cash-in in 2023 was about CAD 453,000, and that was on par with 2022. We have two line items here now, inventory impairment of cost of inventory, and I want to explain this, because these items together, in our financial statements, are being recorded as cost of sales, but they're different. Cost of inventory is the cost we have to purchase additional blood pressure cuffs and tablet computers and pulse oximeters that we ship to our clients to give to patients. Inventory impairment is an IFRS-mandated decrease in value of inventory in stock if it's been in stock over 12 months. We have some long-term inventory that we've kept in stock because we were able to get a good deal on buying in bulk, for example, weight scales and also pulse oximeters. We also have an inventory of parts that will eventually be assembled into a new technology device that we've invented, that we are bringing to market, that is in the final stages of FDA and Health Canada approval. That inventory has been in our inventory for some time, and so therefore, these are non-cash inventory write-downs that will one day be corrected. I say that because when you add these two together, you see a gross profit of CAD 1.282 million, but that, in fact, is a little bit higher on the operational side because of those non-cash items. Nevertheless, from an IFRS point of view, our gross profit of CAD 1.28 is a double in gross profit from last year, and that should be expected. As subscription revenue becomes a larger and larger part of our revenue mix, it has by far the highest margins. So over time, investors should be looking for, and should see, Cloud DX overall profit margin continue to increase as that subscription revenue becomes more and more the dominant revenue in our revenue basket. In this case, an increase between 52%- 71% over the course of the year. We believe you're going to continue seeing that kind of profitability increase throughout 2024 and in years to come. Moving on to the expense side. We're pleased to say we were able to reduce operating expenses at Cloud DX, despite all this new business, by CAD 1.3 million. We've done that by being very aggressive at managing costs. We were able to, in a smart way, reduce some of our salary and staffing costs, partly through right-sizing departments, partly through organic change, and we've, in addition to that, pinched almost every other penny in our cost stack. So that is driving not only a reduction in overall costs that are long-term, which adds to profitability, but that efficiency also means that we're able to operate in a very lean way. All of this together then has led to a reduction in operating loss for Cloud DX from 2022 to 2023. We've brought our operating losses down by just under CAD 2 million. Now, I want to point out to everyone that the big changes in cost reductions began in Q1 and took several quarters in 2023 to work their way through our system. So we're seeing the full impact of those cost reductions on top of the impact in doubling of profitability, really kicking in in Q4 and roll into 2024. So this improvement in profitability is something that is ongoing. We're going to continue seeing that moving forward. During 2023, we raised a substantial sum in the form of convertible debt. The convertible debt at Cloud DX is now being managed. We'll touch on that in just a minute, but I want to point out that the interest line item in our financial statements is a non-cash item. All of our convertible notes are accruing interest, not paying cash interest. That interest is expected to be paid in the form of equity when those convertible notes convert. So from a non-cash plus cash point of view, our operating, our net loss rather, is flat from last year, but a much larger portion of that is now non-cash and is expected to be converted. Okay, so those are really great numbers, really excited about that. Let's flip to the next slide and just summarize for a quick second. We've seen an increase in revenue of 55.4% to just under CAD 2 million in revenue, but more importantly, we saw a doubling in gross profit margin by 112%, up to the amount noted. We've also seen that subscription revenue increase by 69%, faster than our total revenue, meaning the percentage of the overall revenue basket that is subscription revenue is increasing. Lastly, we were able to reduce our operating expenses by 20%. All of this is moving in the right direction and bringing Cloud DX closer and closer to cash flow positive, and that rate of change is increasing. Okay, now let's just quickly touch on some of the announcements we've made since January first of 2024. If you've had a glance at some of the press releases Cloud DX has put out, when we add up the contract value that we've announced so far this year, it's CAD 5.1 million. 10 new contracts and 14 renewed contracts, for a total of 26 contracts, either renewed or initiated. That has increased the number of patients that we currently cover by all of our existing contracts by 52%. That's the group of patients we're currently selling into. Our subscription line item, the number of subscriptions producing that monthly recurring or annual recurring revenue, has increased approximately 50% since January first. We have, as I mentioned earlier, a near perfect contract renewal rate. In fact, only one contract has paused so far, and as the next few weeks rolls around, there'll be even additional data being added to that pile. One more point that's very important to note for investors: as we grow and as we become the dominant provider of remote patient monitoring in Canada, we're in a position to raise our prices. We're happy to say that over the course of 2023, we were able to raise the monthly recurring revenue on our Canadian contracts by approximately 45%. In other words, in 2022, the average monthly recurring revenue on a Canadian contract was 35 CAD. In 2023, that increased to 49... Sorry, in 2024, rather, that increased to 49 CAD. So that is a substantial increase in profitability because the cost to deliver those contracts has remained the same. And there's one more piece of good news when it comes to gross margins from profitability. In our US contracts specifically, I mentioned earlier that most of our US customers are renting the Connected Health kits from Cloud DX, rather than paying for them upfront. Now, on the one hand, that means that that initial upfront product revenue doesn't flow through the financial statements, but on the other hand, it means that the margins on Canadian, on those particular US accounts is higher overall, 'cause once that kit is amortized, we don't change the price. So obviously, $58 or CAD 74 per patient per month in the US is our highest revenue line, our highest margin line, rather. But the change we're talking about here is the fact that more and more of our US clients are able to adopt a BYOD, or bring your own device, strategy. And all that means is that because the patient already has a smartphone or a tablet, we're not required to include that tablet in the kit that's provided by the doctor. That means that that tablet cost is no longer part of the amortization of that kit, and in the first year of those rentals, it raises the margin on those rentals by 30%. All of this means that from the point of view of profitability, Cloud DX has turned a massive corner from 2023 into 2024. Please, next slide. Now, I want to discuss some important news that we announced in March 2024. As I mentioned earlier, Cloud DX has raised substantial new capital in the form of convertible debt, and in 2024, we have begun converting that debt into shares. This transaction, in particular, is noteworthy because the convertible notes that converted on March 19 converted early. These are notes that are expected to mature in May, July, October, and January 2025. But CAD 4.2 million of those notes converted early at a premium to market. Price that those notes converted at is CAD 0.504 on average. And then, 26 million shares that were converted under those conversions joined a voluntary escrow pool for 2 years. So this is a group of investors who is extremely long on our story, recognizes that they're not interested in selling their stock, agreed to convert early at the price of conversion that was agreed to in their convertible note agreements, and then agreed to escrow their shares to make sure those shares did not hit the market and reduce Cloud DX's share price. Next slide, please. So this combines now into two different important investor-related notes. The first is that the business itself is growing very quickly. We've seen sales increase dramatically in 2024. Our new contracts are larger. We've seen that we have higher monthly recurring revenues now, plus lower costs, meaning higher profitability for every single contract we sign. We have extremely satisfied customers, and the evidence of that is not only surveys that we announce periodically, but also the sheer fact that the vast majority of our customers renew their contracts every year. Our subscription growth line item is growing faster than overall revenue. You take into account the share escrow. That means that that giant block of 26 million shares is not on the market, it's not expected to impact the share price, and that is a massive vote of confidence from those investors that took part in that escrow pool. 14 out of 17 of those investors are arm's length investors, and three of them are related parties. So we are in a very, very strong position now to return value to shareholders, which is why an investment in Cloud DX is pretty exciting right now. Demand for our services are increasing across both Canada and the U.S. We know that because both our phone has started to ring and because obviously we've had a huge burst in sales in 2024. We have more published peer-reviewed proof of efficacy than any provider in our space. We have the highest satisfaction scores of anyone we know of, both patient satisfaction scores and provider satisfaction score. We're by far the Canadian leader in remote patient monitoring, with a footprint from coast to coast to coast, all the way from the Yukon Territory to New Brunswick, all the way to the West Coast as well. And we still have some very powerful partnerships, with news and exciting stuff coming on the partnership side. As many of you may know, we're exclusive partners with Medtronic, which is the largest med device company in the world. We have ongoing projects with Medtronic that are coming to fruition and will lead to exciting news in 2024. We're also integrated partners with Teladoc Health. We have more news coming about that partnership in 2024 as well. And we announced a new partner, a global partner, during the Q1 of 2024, which is a company called Sanrai International. Sanrai International is a distributor of medical technology all over the Global South, with distributorships and dealerships in 65 countries. We've immediately begun work with them to begin bringing Cloud DX to partners outside of North America. So it's been an extraordinary year in 2023, and it's been an even more extraordinary four months in 2024, but, Cloud DX is absolutely in a terrific place to grow very quickly in the next, in the coming quarters. So that is now the end of my presentation, and I'm going to. I'll just pop into the app here and see if there are any questions anyone wants to ask. Again, please go to the bottom of your screen, click on the Q&A button if you want to ask a question. We'll give it just a couple minutes for everyone to figure out how to use the question button. Just to reiterate again, this recording of this presentation will be live on our website later on today. Also, if you are in our email database, we'll email you a link to the recording, so you can share it with others or take a look at it again. And, if any questions do occur to anyone, having had a chance to review the published financial statements on SEDAR, or the management, the MD&A, the management, questionnaire, please email Andrew or myself. We'll be happy to answer your questions going forward. A question regarding one of our new products, which is a product called Vitaliti. During the Q1 of 2024, we announced that, an academic research centre had placed the initial order for our Vitaliti wearable, which is a small device that's used by clinicians to monitor all the vital signs in the body, including blood pressure, for multiple days at a time, completely, remotely, and in a way that allows the patient to move around very easily. It's a tiny little device that just, adheres to the chest, with an earpiece that pops in your ear, to monitor heart rate, ECG, respiration rate, core body temperature, and so on. Vitaliti's been under development since 2017, when it formed the nucleus of our award-winning tricorder that won the Qualcomm Tricorder XPRIZE competition in that year. The institution that's worked with us the most on validating Vitaliti is McMaster University and Hamilton Health Sciences and the Population Health Research Institute. We've published papers on the efficacy of Vitaliti, and we have begun the work to get Vitaliti licensed by Health Canada and cleared by the FDA. In the meantime, Vitaliti has been purchased for a very large, multi-site, post-surgical academic study. This study is called Vision Two. It's going to monitor 20,000 patients over the next 4 years for 30 days after surgery, using the Vitaliti system sent home with each patient. Now, this type of giant academic study is common with brand-new technology, and we're able to actually deliver this technology under what's called an Investigational Testing Authority from Health Canada. So this is technology that's being used by clinicians to study the impact of technology like this. It's being used to monitor patients under strict academic scrutiny, and for that reason, we're able to proceed with this project, even ahead of Health Canada license and FDA clearance. But let's be clear, there's no risk to the patient because the entity that is actually delivering this technology to the patients has been studying it for five years and has conducted a whole series of tests, including tests that have been published, to prove the accuracy of our measurement of blood pressure, and tests to publish the accuracy of the Cloud DX system versus the systems that are commonly used in hospitals. Those papers are now either public or in the process of being published. So this is an ongoing project that will become bigger and bigger over the next few quarters and years, and will eventually lead to both full-scale approval of these technologies by regulators, but also a much larger deployment throughout the entire multi-site system that is currently adopting it for academic use. So that is the story with regards to Vitaliti and its first initial deployments under the Investigational Testing Authority for academic research, Canada and the United States. Okay, second question, and then I think at this point, we'll... If there are no more questions, we'll start wrapping it up. Just quickly, the question is asking for more detail about the concept of patients on our system and that subscription number, subscriber number. So, when Cloud DX signs up patients, we sign up patients in two really broad, different categories. Chronic disease patients who use the Cloud DX platform typically use that platform from the day it's prescribed for the rest of their life. The longest-running deployment of Cloud DX technology is with a partner, Markham Stouffville Hospital, which has been using our technology for six years. They are using our technology for complex chronic disease patients, including patients with COPD, which is obstructive pulmonary disease, heart failure, emphysema, uncontrolled hypertension. The longest running patients on that platform have been using the system that entire six years, and the oldest of them is over 100 years old. So that is a long-term deployment, where the same patient uses our technology day after day, year after year, for literally their entire life. The second type of deployment we do is in hospitals that are using our technology for patients after surgery. These post-surgical kits are sent home with the patient for anywhere from 2 weeks to 30 days, and are then returned to the hospital, sterilized, and reused for a different patient. So the kit is in constant use. However, it's being used for different patients. So what we've done is we've established a metric of active subscription, which combines these two different types of deployments. An active subscription could mean one patient using our technology for years and years, or a hospital using our technology for different patients every month, but still using that same kit for years and years. All of that bundled together is an active subscription. Back to what I said earlier, a typical active subscription at Cloud DX generates approximately CAD 1,000 per year in annual recurring revenue, and that's a blended revenue from the hardware and the subscription. That blend depends. It's about the same whether or not the patient is or the doctor, rather, is renting the kit, or whether the kit was paid for upfront by a Canadian province or Canadian health authority. So that's it's a broad bucket, but it's a, it's a rule-of-thumb number. What that means is every 1,000 patients on our system generates CAD 1 million in revenue. Every 10,000 patients is CAD 10 million, every 100,000 patients is CAD 100 million, and so on. So it's an easy way to keep track of Cloud DX recurring revenue going forward. At the end of 2023, we had approximately 1,500 patients on our system, and that means a run rate of about CAD 1.5 million, and that number has increased now. It's about to increase in Q2. By the end of Q2, we expect that number to be approximately 2,200 patients. By the time we reach approximately 9,000 patients, that recurring revenue, just going back to our financial statements, you'll see, is, is covering our operating expenses, which puts Cloud DX in the position of being operationally profitable. So that's a good rule of thumb for investors to think about. Okay, one more point. 2023 was a year of Canadian contracts. Most of the provinces in Canada during 2023 published a request for proposal, or RFP, to choose a vendor to provide RPM for multiple years going forward. Cloud DX won the vast majority of those. In fact, we won eight out of nine of those RFPs in 2023. Including all the largest ones, for Alberta Health Services, the entire province of Alberta, Alberta Primary Care Network, which is the primary care network in Alberta, and most importantly, Mohawk Medbuy. And when you look at our financial statements and you look at the MD&A, you'll see we discussed the Mohawk Medbuy contract. But essentially, Mohawk Medbuy is the largest hospital procurement agent in Canada. Over 100 hospital systems and provinces purchase everything they buy, from bedpans and bedsheets to syringes to remote monitoring, under a master contract with Mohawk Medbuy. We won that RFP to become the sole vendor of RPM for that entire group of hospital systems in Canada, which gives us coast-to-coast coverage, and means that if any hospital system in Canada chooses to deploy RPM, they have the choice of just purchasing it from Mohawk Medbuy, or they have to do their own RFP, which is a very time-consuming and costly endeavor. So Canadian business dominated 2023. American business is liable to grow much faster in 2024. We've turned our sales and marketing efforts to the U.S. We already have U.S. clients in five states, but there are much larger potential clients in our pipeline in the United States, and we expect to see organic growth in the Canadian market. We want all of those Canadian customers to continue growing their footprint and buying more from us. We want more and more hospitals under Mohawk Medbuy to order RPM from us. That is an organic growth process, but we can imagine exponential growth in the U.S. because there is no dominant player in the U.S. market. There are many, many companies there, but we are considered one of the more important players, and in fact, a company that measures these things, called KLAS, considers Cloud DX to be one of the top seven providers of remote monitoring in all of North America. So we expect to see more growth in the U.S., and you'll hear more and more about that in future earnings calls and in future, and in future press releases. Okay, so that seems to have wrapped up our questions, but if there are any further questions, please send us an email. In the meantime, I want to thank everybody for joining us today, and again, remind everyone that this is being recorded, and you will see the recording on our website shortly. Thank you for your interest in Cloud DX. Please go to our website, cloudDX.com, at any time to see what's new. And please, if you're not already on our mailing list, please give us your email, because we'll be emailing news to all of our email database and on our social feeds, on LinkedIn and Facebook and Twitter, as more and more news rolls out in the coming days. Cloud DX is in a fabulous position right now. We're growing extremely quickly, and your support is important to that growth as well. So thank you for your time today, everyone, and have a great rest of your afternoon.
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