All right, I'm gonna get started. My name is Robert Kaul. I'm the founder and CEO of Cloud DX, and today we're gonna review the corporate financial results for the first quarter of 2024. Please be reminded that you may be hearing forward-looking statements today. Forward-looking statements are covered by the forward-looking statement disclaimer that's found on our website and in our investor presentation packages. Without further ado, what we're gonna do is we're gonna move forward and look at the financial results for the quarter, and then talk about some of the year-to-date accomplishments for Cloud DX, as announced in press releases since January first of the year. I will also be reviewing really what we do for everyone, just so that if there's anyone on the call who's new to Cloud DX and new to our story, I can share with you sort of what we do and why we're special. Time permitting, we may be able to take a few questions from people present on the call. Please use the Q&A function. If I don't get to your question today, we apologize, and we will do everything we can to answer your question separately by email. Okay, we're pleased to report positive results for the first quarter of 2024, especially versus the same quarter in 2023. As you see here, subscription revenue increased by 23.7%. Now, as everybody who knows our story knows, the majority and the fastest-growing portion of our revenue is software-as-a-service subscriptions, which are paid for by hospital systems, doctor's offices, and academic medical centers. Patients who use the Cloud DX platform do not pay subscription fees. Our platform is prescribed by physicians. So the subscription revenue growing 23% is a very solid sign, a solid number. The product line dropped in the first quarter compared to last year, and this is simply a factor of when our Connected Health Kits are ordered, shipped, billed, and paid for. And so, in this particular quarter, most of the orders came later in the quarter. Most of those orders shipped at the very end of the quarter, and the payment and revenue from those shipments rolls into the next quarter. So that just is a quarter-by-quarter fluctuation that's very, very, common and not unusual at all for Cloud DX. What is very unusual, and very exciting and very different is that we have grown our services business, dramatically. Services are Cloud DX work that's done for our customers to make our platform perform better. It could be anything from integrations into electronic medical record systems, customizations, new features. In this case, it also includes a project that was announced during the quarter to deliver some of our new cutting-edge technology, a wearable sensor package called Vitaliti, to McMaster University in Canada, to do a very large, multi-site, multi-thousand-person clinical study of patients after surgery. That revenue is counted as, professional services, and in fact, some of that revenue is actually still coming. So to measure it with the kit values, the kit revenue, product revenue, also, our cost of product was smaller in this, quarter as well. So that's a much lower number, leading to a literally nearly doubling of our gross profit, and this is a trend you've seen with Cloud DX. We announced a very similar gross profit increase in our annual financials for 2023. So what this shows investors is that while our sales are growing, Cloud DX is also becoming dramatically more profitable quarter after quarter, and that's extremely good news. So gross profit margins in the quarter are booked at 94.6%, and that's because it represents primarily subscription revenue, which is extremely high-value revenue, extremely high profit margin revenue, and services revenue, which is also relatively high profit margin revenue. The profit margins on the products we sell is only about 20%. The other thing you'll note here is a CAD 701,000 decrease in operating expenses, and this is the result of all the economizing and all of the efforts made during 2023 and the first quarter of 2024 to make Cloud DX more efficient. That includes everything from right-sizing the staff to subletting or reducing our footprint on real estate, saving money on software subscriptions, and any way we can increase our efficiency and our productivity in order to bring the company to cash flow positive faster. And that's, I think, a very solid number. CAD 700,000 savings for the quarter translates into CAD 2.8 million in reductions of savings of costs in the year, which is absolutely material for a company our size. The last point here to make is government funding, as most folks who know our story very, very well know, our government funding fluctuates from quarter- to- quarter. We have active grant-funded projects on the go, and depending on which quarter the payment from the grant lands in, the government funding number changes accordingly. This number is under IFRS accounting rules. It's not considered revenue. If this was a company that was governed by a different set of accounting rules, that wouldn't be the case. But in any case, under IFRS, this is listed in a separate line in our financial statements but nevertheless represents an amount of cash that we use to pay for R&D at the company. So that leads to a CAD 919,000 improvement in EBITDA. Our EBITDA is, again, dropped from a -CAD 2 million to a - CAD 1 million. We're halfway to EBITDA positive in the quarter, which is, I think, a really great, number to look at, and it's a great statistic. Interest payments on convertible notes. Many investors who have followed our story know that we raised some in convertible note financing last year. That interest is accrued and, non-cash. Although that line is in our financial statements as a cost, and it is a cost, obviously, it's a cost that is borne, that is typically paid for upon conversion using shares, but it's a non-cash item from quarter- to- quarter. We're not paying cash for that interest. But with the interest included, even on a non-cash basis, we've still improved our net loss by CAD 481 thousand, which I think is a very solid beginning on our eventual profitability as a company. Okay, we're gonna move now. Just to quickly remind everyone, now that we've put a basis in everyone's mind about how the finances are looking in the first quarter, what exactly Cloud DX does. So MRR, in this case, stands for monthly recurring revenue. This just really explains the value of our software subscriptions. We've already mentioned that there are high-margin subscriptions that we're selling to hospitals, clinics, Canadian provincial health departments, academic research institutes. Typically, our contracts run from two years to seven years. Our longest-running contract is the Mohawk Medbuy contract, which is a Canada-wide procurement contract, which is a seven-year contract. Overall, our contract renewal rate is very, very high. So typically, we are able to bill on a monthly basis per subscription, anywhere from CAD 49- CAD 127. That gives you an idea, as our subscription numbers grow, how rapidly our revenue can grow. Next slide. So we've already spoken about product revenue that represents the medical device kits that we've been talking about. We've already talked about our service and integration line item, which includes all the different value adds you see here. We've talked about our government funding, which is a non-revenue item, but it's still additional cash. Next slide. With regards to subsequent events and year-to-date news, I wanna obviously emphasize the most recent news that the company has announced, which was the awarding of a CAD 9.4 million contract to Cloud DX from the British Columbia Provincial Health Services Authority. This contract is a three-year contract with two one-year renewal terms. And, we're very, very excited, of course, to be positioned as the vendor for this contract. It's a huge win for the company and for everyone. Next slide. That really sets the stage for a pretty terrific first quarter from the point of view of contracts. Overall, the value of the contracts that we've announced since January 1 is just over CAD 14 million. The number of patients or available patients that are covered by those contracts has essentially increased from roughly 100,000 to roughly 200,000. The number of subscriptions that are expected to complete between now and the end of Q2, so these are subscriptions in the pipeline, has increased from 1,570 at December 31. We're now projecting over 2,200 subscriptions. I mentioned a very, very high renewal rate. We have actually, in Canada, a 100% renewal rate, which is good as it gets. Occasionally, we do lose a client. In one particular case, we had a U.S. client, for example, who simply had changed direction when it came to how they were doing remote patient monitoring, partly because of staffing changes. They stepped back, and that, you know, spoiled our 100% contract renewal rate, but nevertheless, it's still extremely high, and that's a very, very powerful point. Our contracts tend to be in the terms of this kind of thing. They tend to be very sticky. We've already mentioned that our minimum monthly recurring revenue per subscription is now 49 CAD. That is a 45% increase from previous years. So in 2022 and 2023, we were typically charging about 35 CAD per patient or per contract or per subscription, rather, per month. That number is now a minimum of 49 CAD, and it's up as high as 127 CAD. And, one last point, when it comes to margins, especially margins on our U.S. contracts, we're seeing a trend, and the trend is that more of our patients with those clients are actually being able to use their own phone or their own iPad with our app downloaded from the App Store, as opposed to the company shipping a tablet computer in the Connected Health Kit. That reduces our costs and increases our margins, and the increase is roughly 30%. So these are some stats for the year, and they're very, very, encouraging. We have three big reasons why Cloud DX has won all this business, why this quarter, this first quarter of 2021 especially, has been a very productive quarter for the company. The first big differentiator for Cloud DX is that we have a track record of success. We have now the largest footprint of any company to do remote patient monitoring in Canada. We have the largest provincial contracts, like British Columbia, but also Alberta Health Services, the Alberta Primary Care Network, the Canada-wide Mohawk Medbuy contract, Yukon Territory, Province of Prince Edward Island, and so on. We have that track record. We also have the track record of working extremely well with our customers, and that's important. We have a scientific track record, with published peer-reviewed papers demonstrating and proving the efficacy of our platform, and we have a strong IP portfolio with 14 patents. On the subject of how our products perform, we address the concept of adherence, and adherence just means patients are able to use our system every single day very comfortably and very easily, which means that they are, in fact, adhering to the instructions from their physician. We have a very, very high patient compliance or patient adherence statistics at Cloud DX. We list here over 91% based on samples that we've done. We track patient performance and patient adherence. We're able to report to our users that a patient's non-compliant. We're actually able to address that with the patient directly through our service teams to ensure that they become compliant, and that compliance service is a huge differentiator for Cloud DX, and actually really helps drive business. In the United States context, in order to be reimbursed for remote patient monitoring that you bill to insurance or to Medicare, the patient compliance has to be there. If it's not there, then you can't bill. This is actually one of the things that slows and inhibits our competitors. They don't have the same tools and the same systems in place to provide compliance that we do. It's a very strong differentiator that is also driving patient satisfaction. Patient satisfaction and compliance obviously go hand in hand, but in published surveys and in surveys we've done that have been press- released, we've scored up to 100% patient satisfaction. Our patients really just love our system. And then the final point we'll make is that we have tremendous partnerships at Cloud DX. We are directly integrated partners with Teladoc Health in Canada, and Teladoc is our co-vendor, not formally, but informally, through the British Columbia contract, for example. Teladoc is also a vendor to British Columbia. Our systems work together in British Columbia. That strengthens our ability to grow quickly in British Columbia. We're also tightly integrated partners with Medtronic. New Medtronic technology is being integrated into the Cloud DX platform for eventual distribution around the world. We have, as we've already mentioned, a blanket contract for the whole country of Canada with the largest hospital procurement agent, which is Mohawk Medbuy. That means that any hospital system in Canada can go ahead to Mohawk, order remote patient monitoring from Mohawk under that master contract, without having to do any kind of separate RFP, which of course, is the way they would want to do it. We are seeing growth in that area as well. And then the last contract that was announced in Q1 of this 2024, is a contract with a company called Sunray International, and Sunray International has a footprint in, let's call it the Global South. They're one of the leading providers of home healthcare and oxygen therapy in Central and Latin America, Sub-Saharan Africa, the subcontinent and India, the Middle East, and other parts of the developing world. We're working directly with Sunray to begin introducing cloud technology to these new markets for eventual distribution in the next 3-6 quarters. So really, what we're looking at now is some pretty tremendous shareholder value. Sales are increasing. We've been managing our balance sheet, and that puts us in a strong position. Next slide. We're catching up. So what I'm gonna do now is I'm gonna quickly go to the Q&A section. Please ask some questions. We have just a few minutes to answer questions, and then we'll let everyone go. So this is an anonymous attendee. Thank you very much for asking. If we could become a billion-dollar company, and if so, what would the journey, timeline, and milestones look like? So obviously, proclaiming that you have an opportunity to be a billion-dollar company is a really, really big statement. That would require a large number of subscriptions. If you do the math on the monthly recurring revenue that we earn from each subscription, it averages out at a little over CAD 1,000 per subscription. That means that for every 10,000 subscriptions on our system, we would generate CAD 10 million in annual recurring revenue. At what point does a company become a billion-dollar company? That's a very, very large question, but I think that there's two things you can ask yourself. If this concept of virtual care and this concept of remote patient monitoring is slated to become more and more of an important part of how healthcare is delivered in the 21st century, in that case, what does that look like? And what kind of companies are gonna be winners in that space? And I think that we can ask ourselves, is it companies that have terrific track records, strong IP, scientific proof of efficacy, strong partnerships? We believe Cloud DX is in that category. A great question with regards to the contract values announced and what timeframe we're looking at for that, those funds to flow. Again, those contracts, in each announcement, it points out the length of those contracts, and they range from 2 years to 3 years to 5 years. So in some cases, it's spread out a little bit, and the larger ones, especially, will be producing the most revenue in 2025 and 2026. So we believe that, you know, the contracts will begin producing revenue in 2024, but will fulfill the most in 2025 and 2026, and on through from there. As you saw in our financial numbers, the burn rate or the operating expenses to Cloud DX are coming down, that the gross profit is going up. It's hard, it's hard to project, and we are not, at this point, giving the market guidance, formal guidance on when we expect to fully break even, and there's really only two reasons for that. One is that we're still working with the new clients that have come on. I mean, if you look at this timeline, we have, we've signed and announced these new contracts literally in the last matter of weeks. It's only been, it's been 10 weeks, 14 weeks. So each one of those contracts, we have to work through the deployment program and so on and so forth. But the announced numbers were the numbers that came from the client. So, I mean, that I hope that gives investors, you know, some clarity. This is not CAD 14 million in 2024, unfortunately, but nevertheless, this is a very solid base in Canada to grow into the United States and other countries. So we've come to the end of our questions. I want to thank everybody for your time today. Thank you for listening, and I want everyone to have a wonderful weekend. Thanks.
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