Good day, welcome to the Think Research second quarter 2021 financial results conference call. Today's conference is being recorded. At this time, I would like to turn the conference over to Sachin Aggarwal, CEO. Please go ahead, sir. Thank you very much. Good morning, everyone, and thanks for joining us today. If you're having trouble finding our financials, please go to our website. They are correctly posted there. There appears to be an OSC filing error. Don't make the mistake of reading the alternative company's financials in place of ours. They're smaller than us. Again, you can find the correct financials on our website. With me on the call today is Jae Cornelssen, our CFO of Think Research. He will review our financial performance for the quarter. Before that, I just want to give you some perspective on our recent transformative strategic acquisition that we announced. I'm going to also talk about a few key operational milestones and our KPIs for the quarter. After Jae reviews our financials, I'll give you some perspective on our revised outlook. I'd like to make sure to remind everyone that some statements made on today's call are forward-looking in nature, and therefore, they are subject to certain risks and uncertainties, which we outline in great detail in our regulatory filings, which may be found on SEDAR.com, for the most part being correct. Think Research is a global software as a service company. We provide actionable clinical knowledge in real time at the point of care for healthcare networks in eight countries. Our software is deployed in more than 2,800 healthcare facilities, and more than 300,000 clinicians use our solutions to keep their practices up to date. We also operate some private clinics, which act as a profitable test bed for our solutions and provide a critical feedback loop for us so we can continuously expand and improve both our knowledge base and our workflow solutions for customers all over the world. Our solution solves a large and expanding problem for clinicians everywhere, which is an explosion of unstructured evidence and data, from emails to faxes to Google searches and paper manuals at the point of care. Clinicians are wading through this information to determine best treatments, and it can take anywhere from 10 - 20 years for new best practices to get out to the point of care for a single treatment. Our mission is to organize the world's health knowledge so everyone gets the best care. We started trading on the TSX Venture Exchange on December 30th, so this is our second quarter of 2021, and it's our second quarter reporting operations as a public company. Subsequent to quarter end, we announced the acquisition of BioPharma Services Inc. for CAD 44.6 million of total consideration. This is a transformative transaction. It nearly doubles the scale of our business, and it also closes the final gap in the knowledge life cycle for our solutions while creating some new synergies in the pharmaceutical market. BioPharma, like other TRC business lines, is a knowledge business. They conduct phase I and bioequivalent studies for large, medium, and small pharmaceutical companies and biotechnology companies. Since their inception, they have participated in more than 2,000 clinical studies. The bottom line is that this acquisition goes a long way towards our mission to organize the world's health knowledge so everyone gets the best care. For Think, the acquisition of BioPharma Services also enhances our growth rate potential overall on a combined pro forma basis, gives us positive adjusted EBITDA, diversifies revenue streams across a new market, which further de-risks future market volatility in any one of our solutions. It delivers meaningful initial earnings and positive operating cash flow to start. It increases Think's global footprint, especially in the U.S. market. The integration plan for BioPharma leverages current Think technology to digitally transform BioPharma. This digitization will involve deploying certain existing Think technology to BioPharma, which is mission-critical to the future success of the CRO business, including electronic data capture and retention, digital consent and patient documentation, virtual and decentralized trial technology, a learning management system to train trial participants, and very importantly, a patient recruitment marketplace grafted onto the Think digital referral network to recruit clinically relevant patients for trials. Again, these are all technologies that exist today at scale in the Think tech stack. The impact of this digital transformation will be, first, to increase annual EBITDA margins from 10%-20%, which is in line with similar CROs that have digitized. Second, to provide more operational scalability so that we can increase profitable growth over time. Third, gain expected ongoing cost synergies, conservatively within six months. Fourth, gain operational synergies in sales, knowledge, and product development. Fifth, gain market synergies through dozens of shared and overlapping customers, particularly as between BioPharma and MDBriefCase across the pharmaceutical industry. The total consideration of the transaction comes in four forms. These are CAD 20 million of cash on close, CAD 18 million of Think common shares upon close, and two CAD 3.25 million deferred payments, the first being six months after close and the second 12 months, payable in shares or cash at our discretion. To help finance the cash portion of the transaction, we raised approximately CAD 14 million of equity through a non-brokered private placement. Today, we have sufficient available capital to close the transaction on or before September 15th, 2021. Notably, the anchor investor in this non-brokered round is the CEO of Northwest Healthcare Properties REIT, Paul Dalla Lana. We're excited about that investment. We believe it can offer promising strategic benefit to the company in the future. The company currently has CAD 10 million of available debt capital. Combined with CAD 1.6 million of operating cash flow reported for this quarter and CAD 3 million of cost synergies gained subsequent to quarter end, we're confident that we have sufficient available working capital to complete the integration, digitally transform BioPharma, and scale the entire company in line with our expectations. With respect to our second quarter performance, I'm really happy to report that it was a solid quarter by all measures. We reported a record CAD 10.2 million of revenue for the quarter. It was an increase of 167% over the same quarter last year, which was ahead of our expectations. Jae will go into more detail regarding our performance in just a few minutes. To give you some perspective on the progress that we're making in the market, I just want to highlight some operational achievements that we announced this quarter ended June 30th. First, I want to highlight two usage and demand milestones for our software. In late June, we announced that demand for our eForms electronic data capture software has increased by more than 140% year-over-year, and the demand for this solution continues to be strong. Next, Think provides solutions for digital referrals, as many of you know. In early June, we surpassed a milestone of 325,000 digital referrals in that quarter. The adoption of this solution continues to gain traction in key markets, we're pleased that it's become an increasingly important feature for clinicians to use, particularly in the province of Ontario, where it has recently gone from part of the province to contracted across the entire province. Second, channel partnerships are very important to our scaling strategy, especially as we've become more global. During the quarter, we attained three partnership milestones. On May 5th, 2021, the company announced that we partnered with the British Columbia Seniors Living Association to revitalize its Senior Standards Assessment Program. This is called the Seal of Approval. On May 27th, 2021, the company announced a multi-year partnership with the leading hospital information system in the Kingdom of Saudi Arabia to deploy our clinical content software across hospitals in the country. On June 1st, 2021, the company announced our enterprise telemedicine software platform is a listed partner on the PointClickCare marketplace, specifically aimed at long-term care and skilled nursing facilities in the U.S. Third, we continue to innovate. This quarter, we introduced a new solution innovation. On April 14th, 2021, the company announced the opening of a new digital-first clinic that modernizes and streamlines the patient experience by offering secure virtual and in-person care for an underserved region in the Greater Toronto Area. With that, I will turn the call over to Jae to review our financial performance for Q2 in more detail. Thank you, Sachin, and good morning, everyone. I will review our financials based on some key line items in the financial statements and the balance sheet. I just got word and checked the correct version of our financial statements in MD&A are now posted on SEDAR. For Q2 2021, we report the following. Revenue for the quarter was CAD 10.2 million, 167% increase over CAD 3.8 million reported for the second quarter of 2020. Sequential growth was a very solid 22% over Q1 2021. This is due to increasing uptake of our solutions across all business lines during the quarter. Recurring and highly reoccurring revenue with BioPharma combined after integration should be somewhere around 85% of total revenue. We will officially report on revenue broken down by line of business and type in Q4 once our financials for the year are audited and the definitions are clear. Gross profit for the quarter was CAD 5.7 million, 186% increase compared to CAD 2 million reported for Q2 2020. Gross profit increased due to revenue growth, primarily as a result of the acquisitions. Gross margin for the quarter was 56%, compared to 52% reported for Q2 of the prior year. The variance in margin is due to the increase in revenue, impact of acquisitions, partially offset by the temporary increase in expenses due to COVID-19 protocols in the clinics during the quarter. Once combined with BioPharma, total gross margins for total operations should come in in the high 40s range. For context, the general CRO industry operates in the mid-30s GM range. Total operating expenses was CAD 10 million, 106% increase over CAD 4.8 million for Q2 2020. The increase in expenses is due primarily to the addition of OpEx from recent acquisitions, higher depreciation and amortization, stock-based comp, and incremental reporting and compliance costs related to being a listed public company. Subsequent to quarter end, approximately CAD 3 million of cost synergies were realized with respect to the acquisitions, which will lower our total OpEx going forward. Adjusted EBITDA loss, a non-IFRS measure, was CAD 1.3 million for this quarter, compared to a loss of CAD 1.9 million for the equivalent period in the prior year. Sequentially, adjusted EBITDA loss declined by 29%, reported to the losses reported in Q2 2020. Adjusted EBITDA margins should improve dramatically going forward with announced cost synergies and EBITDA from BioPharma and new cost synergies from integration. Adjustments to EBITDA include stock-based comp, one-time transaction expenses, premium paid on redemption of Class A preferred shares, and foreign exchange adjustments. Net loss was CAD 5.6 million for the three months ended June 30th, 2021, compared to a loss of CAD 3.1 million for the equivalent period in the prior year. The difference in net loss was due to acquisitions and related acquisition costs, investments in growth, higher stock-based compensation, partially offset by increases in higher revenue. The net loss per share for the quarter was CAD 0.13, compared to CAD 0.12 for Q2 2020. We had cash on hand of CAD 6.7 million at June 30th, 2021, and net debt of CAD 2.5 million at the end of the quarter. I will now hand it back to Sachin for closing remarks ahead of Q&A. Thank you, Jae. I want to review what Think becomes once the transaction of BioPharma is completed. On a pro forma basis, we should generate well over CAD 80 million of revenue, with over CAD 3 million of annual adjusted EBITDA on a pro forma basis, conservative organic growth rate of 16%, and the potential to almost triple our adjusted EBITDA in fiscal 2022. Additionally, we have now over 200 research customers globally to go along with the nearly 300,000 clinicians and more than 2,800 hospitals, clinics, and long-term care facilities that are clients. Once the integration and digital transformation of BioPharma Services is completed using Think technology, approximately 85% of our combined revenue will be derived from software and technology, and our aggregate gross margin should be approaching 50%. Strategically, Think will have primary data through the entire clinical knowledge life cycle, from phase I drug trials, to the bedside, to real-world evidence. No other entity in Canada that we're aware of has that level of insight into clinical knowledge, nor the ability to commercialize it. We're becoming proficient at acquiring and integrating companies as well. Just by way of demonstration, just contemplate this. Exiting fiscal 2020, our total revenues were about CAD 16 million. Since then, we've diversified our revenue streams and have been a public company for only eight months. We've increased our annual revenue run rate nearly sixfold and become operating cash flow positive, with offerings spanning eight countries. Our revenue streams have diversified in line with our mission to bring new clinical knowledge to the bedside, to include everything from clinician referrals to education, to education-based workflows and knowledge-based workflows, to delivery, and now to pharmaceutical research, trials, and development. Notwithstanding future acquisitions, we should enter next year aiming for nearly CAD 100 million of revenue, free cash flow, and adjusted EBITDA margins in the high single digits. We're also not done with acquisitions. We continue to scan the market for more accretive M&A opportunities if they make sense for the mission and to shareholders. Our sales pipeline is growing both directly and through partnerships in all lines of software. We will continue to invest to expand and cultivate partnerships over the coming quarters, especially internationally. We are undertaking to clarify and simplify our branding as well. This will help all constituents that we communicate with, whether customers, users, partners, employees, or shareholders to better understand our value proposition, our offerings, and our culture. The quality of our revenue is extremely important to us. As we continue to integrate and scale organically, we anticipate that growth in software revenue should outpace growth in clinical services revenues over the coming quarters. This will result in a higher proportion of recurring and reoccurring revenue in the future compared to now. We're already high, but this will be higher. Think is in the middle of a revolution of data for healthcare, and we believe that we are uniquely positioned right now, especially as a public company, to seize the opportunity ahead of us. Frankly, we believe that we are proving it to shareholders right now. Our mission is to organize the world's health knowledge so everyone gets the best care. Speaking for all of us here at Think, we could not be more excited about the future. With that, operator, if you don't mind, please opening the line for analyst questions. Thank you. If you would like to ask a question, please signal by pressing star one on your telephone keypad. If you're using a speakerphone, please make sure your mute function is turned off to allow your signal to reach our equipment. Again, that's star one to ask a question. We'll pause for a moment to allow everyone an opportunity to signal for questions. We'll now take our first question. It comes from Rob Goff of Echelon. Please go ahead. Good morning, and thank you for taking my question, and congrats on a very strong quarter. Thank you, Rob, very much. Could you perhaps dive into the 85% of revenues are software and tech, or alternatively, it was expressed as recurring and highly recurring. Can you talk a little bit more about that mixed component? Yeah. Definitions? Yeah. Thank you. If we're dividing our revenue as between technology driven and non-technology driven, those would be services revenues, clinic direct to patients. The 15% relates to our clinical services revenue, right? The 85% is either recurring, and that's very classic software as a service, or highly reoccurring revenue. In that category, you would have long-term master services agreements with highly repeatable statements of work under them. Basically, long-term contracts with industry partners, for example, pharmaceutical clients. Okay. Thank you. You also indicated in your release that Clinic 360 was closed for the month of May. Could you discuss its impact within the quarter of the closing, its overall contribution to the quarter, and what its run rate might be given you've added space to Clinic 360? Right. I'll go through some of the qualitative impacts. It seems like a million years ago, but there was a shutdown last quarter, and the shutdown affected all non-essential healthcare services, including our clinics and Clinic 360 in particular, which was shut down, as were all other similar clinics across the province of Ontario. That resulted in a month of us being closed, and did negatively impact revenue for that month for us. Notwithstanding that, we've had a very positive top line for the quarter. I will say that we took great advantage of that month. When you're closed, you can move fast on certain operational efficiencies that are necessary. We undertook a renovation of the physical space in order to be able to increase throughput. One of the barriers that we faced, we've got very high demand for our services in that particular clinic. One of the barriers that we were facing is that we couldn't turn over patients fast enough due to some of the physical workflow in the space. We took advantage of that shutdown in order to reconfigure the clinic and have more recovery beds so that we could significantly increase the throughput. I will turn it over to Jae to talk about the financial metrics to the extent that we are disclosing that. Yeah. In our Q4s, just because of all the acquisitions and activity, we will be breaking down the various segments of our revenue. When we think about recurring revenue and reoccurring revenue, we think of that as kind of software or technology-related revenue, call it 70%. That other 30% would approximately be just pure clinic-related revenue that we think of as not being as recurring, but still very high-quality revenue, especially with the backlog in the healthcare system. It's performed extremely well. With respect to the renovations, we think that just removing some bottlenecks and optimizing that business, we can increase the throughput by up to 50% at Clinic 360. It has performed extremely well to date, which we expect to continue going forward just based on the large backlog in the healthcare system as a result of COVID. I'll just layer onto that just a tiny bit more to say that we will, in the future, as Jae says, after our Q4 breakout, the revenue segments. The one thing I'll say is that clinical services like Clinic 360 will be broken out separately. It is important to note that had it not been digitally enabled, had we not layered in software to capture that demand within the system, it wouldn't be possible. Even our clinical services, perhaps relative to some of our peers, are very highly digitally enabled. Okay. Thank you. If I may, one further question, could you perhaps give a bit more depth into the nature of the CAD 3 million in synergies? Thank you. Okay. Yeah, happily. They were headcount reductions. They're across all of the acquired entities, and plus some efficiencies at 360, where there may have been redundant staff, and there were excellent folks at some of our acquisition targets. Now, they're just being completed as we speak, but the vast majority are now done. Again, it's headcount reductions. Jae, anything to add to that? Yeah. It's been completed, and we still have more work to do and can realize more savings and synergies in addition to the CAD 3 million. Okay. Thank you. I will jump back in queue. Thank you. I will now take our next question. It comes from Kris Thompson of PI Financial. Please go ahead. Great. Thank you. Morning, gentlemen. Just to continue on the headcount reduction there, can you just remind us what your total headcount was with all the acquisitions and then what it is now? Yeah. We were approximately 240 all in. Today, we're just a tad higher than 200. Once we complete the acquisition of BioPharma, we will be very close to 500. Okay, thanks, Sachin. That's helpful. Let's just talk about BioPharma. I kind of missed that. Did you say the closing date would be on or before September 15th? Can you give us an idea of what we should model for a closing date? Yeah, that's exactly right. It'll be on or before September 15th. There are a couple of, as you can imagine, it's a complex organization, lots of MSAs. It's got some physical space as well. There are some consents and so on and so forth that are being obtained. We have no concerns about closing, and again, we have all the capital necessary to close. We are doing a couple things in parallel just to get them complete before closing. If you were to model September 15th, we would only be beating that. That might be sort of a safe outside date. Okay. That's fair enough. Maybe Jae, you mentioned the pro forma combined GM of the company would be around 40%. Can you just provide separate kind of gross margin and OpEx percentages on the BioPharma acquisition independently? Sorry. On a pro forma basis, we anticipate being in the high 40s, just to clarify, with respect to gross margin. The CRO industry in general is kind of around 30% gross margin range. I guess if you back into our EBITDA margin going forward, once you realize synergies in 2022 on a pro forma basis, will be about 10%. We plan on increasing that as we continue to digitalize and we continue to have incremental revenue, which becomes incremental EBITDA. Okay. I got it. You said, I think in the prepared remarks, that EBITDA can nearly triple in 2022. Is that half from organic or half from BioPharma? Can you give a breakdown in that way? Yeah. Right now, we just took a bunch of cost out of the business and realized some synergies with respect to previously completed acquisitions. We are still not done yet. We still have some work to do. However, we do think that there is significant savings to be realized by digitalizing BioPharma. As far as the split goes, and the numbers that we have published on the pro formas, we are not anticipating, or we have not forecast huge revenue synergies just to be conservative, but we definitely think that they are there. It is largely cost synergies, but the forecast does have significant upside. When you look at the CRO sector and the growth that is there, 8% organic growth for the sector as a whole approximately according to Global Market Insights. We are going to work with management at BioPharma, which is all being retained, who are very motivated given the large equity that they're retaining to continue to grow the business using our resources and the strong management team that we have at the company. Okay. Have you guys canvassed the key customers from that acquisition? What's their feedback and what's the customer concentration there? There's no meaningful customer concentration. They have a couple of clients that are in the mid-single digits, low to mid-single digits, but there's no single dominant client there. It's been very well received by the clients. Frankly, it's obvious to their clients where there's some natural overlap with the business of MDBriefCase. One of the most interesting aspects for some of these clients is that ability to now reach further into the product life cycle to get real-world evidence from the Think Research product. We're already having early conversations in respect of things like that. Okay. Thanks for taking my questions, guys. I do have some more, but I'll hop back in the queue just to give the others a chance. Thanks again. Thanks, Kris. We'll now take our next question. It comes from Doug Taylor of Canaccord. Please go ahead. Yeah. Thank you. Good morning. A couple more clarifications for me. You phrased your outlook for 2021, or 2022, I should say, pro forma, I think a little differently, but I just wanted to just generally understand whether the ranges that you provided at the time of the BioPharma acquisition announcement are still unchanged one way or the other. Correct. Okay. That makes that easy. The Clinic 360 business, if I'm looking through the disclosures here, seems to be tracking already in terms of revenue contribution for the six months ahead of what it was for all of 2020. First of all, could you confirm that's the order of magnitude of the increase in revenue? I know we're lapping some COVID impacted times and whether that's a good run rate to be using in Q3 and Q4 for that business. I guess just stepping back, with such strong growth from that business, could you maybe talk to either qualitatively or quantitatively what you think your organic growth rates are for the remaining businesses or I guess I should say legacy Think Research? That'd be helpful. I'll take the first half. A lot to chew off there. That business has performed extremely well. I guess it's not one of the primary ones that you would think of that would benefit as a result of COVID, but just due to the backlog in the healthcare system and not being able to do elective surgery, that business has grown significantly and performed extremely well, which is part of the reason why we invested and did the renovations in the month of May. With respect to going forward, we do expect that at least for Q3, Q4, that revenue will remain high at that business. From the intel that we have for elective surgery, there's a backlog of approximately five years. We expect that performance to continue to be strong going forward for that business. Yeah, that's right. In respect of the growth across the rest of the Think Research business, we have some fairly material announcements that we've made and more that are yet to come. The most notable of which being the significant expansion in the digital referrals contract here in the province of Ontario. That single contract adds seven figures to the revenue for the traditional or for the core Think Research business. We're of course, when you expand, when you have a major announcement like that, you don't see all the revenue in one quarter. It takes time to deploy, and that's how we're able to recognize the revenue as users go live. We have many thousands of users that will go live over the next number of years and that will see the revenue track up and result in quite significant organic growth across the core Think Research business. For the CAD 90 million-CAD 100 million in pro forma revenue targeted for 2022, what level of visibility do you have into that revenue base given your recurring and highly reoccurring sources? We have a significant sales funnel, and then we take that and then we probability weight that, and then we have ones that are, "Hey, yeah, we're pretty sure we're going to win these." We also have a significant backlog with respect to BioPharma and also MDB and other areas of our business, just because of the backlog created in the healthcare system. Taking 2021 and then looking forward to 2022, we've modeled in an organic growth rate of approximately 15%, but it's not a static number. As we said previously, we entered the year with approximately a CAD 60 million run rate, and we're going to leave the year with over CAD 80 million on a growth profile in the mid-teens. Next year, it's possible that we could continue to have growth that far exceeds that CAD 90 million-CAD 100 million. This is remarkable to me and just a testament to the entire Think team. We are very pleased with how our sales pipeline is going across all segments. We're confident that it's going to continue going forward into the future as we continue to scale to support the solid organic growth that we have. One last question from me. You mentioned this CAD 3 million in cost synergies, which you've already detailed that in a couple of earlier questions. I just want to make sure I'm clear that none of this has anything to do with BioPharma. Are you kind of pulling some of the projected synergies forward by reducing some headcount that you know you're going to be bringing in, maybe duplicate headcount with BioPharma? No, there will be a separate set of synergies. The CAD 3 million announced is headcount reductions to date. These are headcount reductions that were completed subsequent to quarter end, June 30th, and before the acquisition of BioPharma. Two things. One is we have further synergies that we continue to work on. We expect to see more synergies out of the core pre-BioPharma business. Right. We have synergies that we are expecting once we acquire BioPharma. We've modeled out what most of those look like. We have a very good sense. Conservatively, we are expecting just shy of CAD 3 million in those new savings after the acquisition of BioPharma. Those come principally from digitizing the business, actually. It'll be headcount reduction once you digitize the business. Okay. If I missed it, I apologize. Have you said what you expect the one-time cost related to getting those synergies is going to be in Q3 or going forward? No, we haven't, but it'll be published in our Q3. You'll see a bit of restructuring there with respect to the synergies. Okay. Thanks. I will pass the line. Thank you. We'll now take our next question. It comes from Gavin Fairweather of Cormark. Oh, hi there. Good morning. I wanted to start out just by digging into the 15% organic growth number that you referenced in your outlook. I think that you talked about recurring and reoccurring becoming a bigger piece of your business. Obviously faster organic growth in that bucket. Curious if you could talk about the largest contributors that you see to that across your businesses, just based on what you've seen in your pipeline and also the opportunities that you have across your businesses. Just as a reminder, Jae mentioned the almost 8% CAGR in the clinical research industry, we think that with synergies, with crossing over clients between our existing pharmaceutical clients and BioPharma, that's not very difficult to get up to the 15% range. We're actually modeling it 15% generally across the entire business. Right? We've already seen a number of announcements in the core Think Research business. We will have some announcements coming in the MDB and education business. Of course, you've already seen the growth in the clinic business. We have a high degree of visibility into the expected growth across the various segments already. We're modeling it pretty uniformly across the businesses. The one thing I'd say is that notwithstanding the renovations that we did at 360, eventually the physical infrastructure of those spaces does cap out. Right? This is why we're saying, over time, we anticipate more of the growth will come from the digital, the technology-driven side of the business. Helpfu l, I wanted to circle back on the Ontario eReferral contract. Can you just discuss kind of the expansion there, which new geos or areas of the province are now going live? Just help us understand how the pace of user onboarding is going to work from here. If I remember correctly, I think that there was a ceiling on the fees to some of the other members of the consortium. Do you expect a higher margin profile as the incremental revenue starts to roll in? Yes. Thanks. The digital referral contract, initially the contract, if you remember, you may or may not know, the province of Ontario used to be divided into 14 subregions called LHINs or Local Health Integration Networks. Under the contract, we had eight of those, eight of 14 that were in the contract already, seven of which had deployed. Right? seven of 14 had deployed. One was in contract but had not. The contract is now covering all 14 of those jurisdictions. Okay? With the announcement that it's going provincial, that means it's a sort of single workflow, and the contract gives staff to all those 14 regions now in order to be able to deploy. We're seeing hundreds of users, call it more than low single digit hundreds of users come on each month at this point. That'll be the pace at which the revenue increases. Obviously, as the users come on board, we get to recognize more revenue, and that'll grow. It'll grow and grow and grow quarter-over-quarter. In terms of the gross margin profile, you're exactly right. Good memory. The fees paid or the royalties paid to our partners do cap out. This will not be the year where you see that cap come into full play. You'll see that cap have a more material impact in our fiscal 2022. That's when you should start to see the gross margins for that particular product and product line increase more significantly. That's very helpful. Just lastly, for me, you talked about the BioPharma digitization. I know the deal isn't yet closed. I'm sure you've laid out a bunch of the plans on the integration side. It does sound like a pretty big change management exercise. How should we be thinking about the timing of integration? What are the key milestones that you would talk about and help us understand the timing of the lift in those EBITDA margins as you do digitize that business? Yes, obviously, we've had a lot of meetings with respect to integration. Key management at BioPharma is all on board. I'll remind everyone that they also have a 10% EBIT earn-out. We are fully aligned to the goal of taking some cost out of the business, which is one of the reasons why we're also doing this transactions with them, because we have all the tools to help them digitalize their business. With respect to timing, our goal is to be at a full run rate of synergies within six months. We already have the plan together, conservatively for the cost takeout, you could model in being at a full run rate within six months. With that being said, there will be some day one synergies, some synergies within 90 days, obviously we'll be at a full run rate within 180 days, is the goal. Great. Thanks so much. Our next question comes from Chi Le of Desjardins. Please go ahead. Good morning, Sachin and Jae. Morning. Morning, Chi. Congratulations on the good quarter. My first question would be on the M&A pipeline. Can you please provide more coloring to, say, the number of opportunities, LOIs, what are you seeing, and also the distribution of deals across your segments and geographies? Thanks. Thanks, Chi, and also thanks. Great to see you guys publishing last week. In terms of the total opportunity size, it's approximately 15 companies that are in our acquisition pipeline today. We have a number of those in LOI. We don't disclose the number of LOIs that are signed or that are underway. I will say that of those 15, 100% of them are in one of our four, really three out of the four pillars. We don't have any clinical services businesses that are in that 15. The 15 are distributed across the other three segments, the other three knowledge segments that are technology-driven. In terms of how advanced they are, there are some that are more advanced than others. I will say, of course, we're very mindful of dilution to existing shareholders. We're mindful of our current multiple, and of what we can and can't achieve, as between what is accretive and what's not accretive given our current multiple. We will be managing the M&A pipeline and executing on those that are the most advantageous for the company and for shareholders. We will be holding on some of the others until such time as we have some share price recovery. We also have other tools in our tool belt, as you're probably aware. We have debt available to us that can help to reduce the dilution for certain of the acquisitions. Yeah. That's great. great. Thank you, Sachin. Yeah, go ahead. Equity is precious, especially at these levels. We have on a pro forma basis with BioPharma, we have plenty of working capital going forward to support the business. Positive OCF, operating cash flow of CAD 1.7 million. We do not have to do a raise for the foreseeable future for working capital. Of course, if there is a large acquisition that is highly accretive, like BioPharma, then we will look to it. Again, equity is precious, and credit is widely available right now at good rates. That would be the preferred source of capital to do these transactions. That's great. Thank you. My next question would be on your partnership with CareRx to roll out virtual care across the home. What have you heard from CareRx or the resident at the homes that have these solutions? What are the plans that you have with CareRx to further roll out? How many homes are on the solutions right now? Thanks for that question. We have recently concluded the successful pilot in a small number of homes. We're now in rollout mode to a larger number of homes. You should expect to hear more from us with more details in the coming month or two, specifically on that topic. Okay, thank you. My last one would be on the research and development projects that you mentioned on your 2Q earnings. like the streamlining of the virtual care collaboration tool and the automation work of the eReferrals. Can you please provide more details on what these projects are about, and what are the costs that you have already incurred? How much are you planning to incur in the coming months until they're complete? That's disclosed in our financial statements as addition to intangibles for the portion of labor that we're capitalizing. Largely, the products are already out in the market. It's more just optimizing the back end, which is going to lead to higher margins going forward in the future. We expect to be done those in the very near term. Thank you. That's it for me. Our next question comes from Rob Goff of Echelon. Thanks again. I just want to go back to the 85% of revenues being from recurring and highly reoccurring. Would that include Clinic 360? No where there's a five-year backlog? No, that does not. Just to clarify, just so we're not mixing our messages. Prior to the acquisition of BioPharma, that percentage is roughly 70%. After the acquisition of BioPharma, that percentage is 85%. That does not include Clinic 360 in those numbers. I was pretty sure that it didn't, but it just struck me as interesting that there's a five-year backlog, but yet it doesn't go in within highly reoccurring. It accredits the quality of those revenues. Exactly. Well, that's a great point, and we appreciate that. I think it's just because our view is that the market doesn't fully understand. If it's clinical services, the market puts it in a particular bucket. We want to be clear with the market about exactly what our clinical services are, and they really are a declining portion of the business. They're an important portion of the business, and they will continue to be a declining portion of the business. Cool. If I could, on your R&D, where it was CAD 1.7 million on the quarter, it was associated with your virtual care, where you're looking to finish up Q4 2021, with respect to your eReferral, where it's looking to be completed over the next 12 months. How should we look at your R&D line? Is this a run rate that we'll see projects come and go and be replaced, or are current levels arguably somewhat elevated? Yeah. That's our current run rate. We're a tech company. We're doing all the work in-house, but we're a tech company. We're optimizing the back end of our existing products. We have some new stuff on the go as well. With respect to those two projects, as mentioned earlier, we're optimizing the back end, which should lead to higher margins going forward in the future. Okay, we should just use current rates as ongoing run rates? Correct. Yeah. Okay. Thank you. This concludes the Q&A section. I'd now like to hand the call back to Sachin Aggarwal for any additional comments or closing remarks. Oh, there's one more maybe that was just added in. Just one moment. We will now take our next question from Kris Thompson of PI Financial. Please go ahead. Hey, thanks, Sachin. Just one of two follow-ups. One on the USA performance looked strong in the quarter. What drove that? Is that the PointClickCare contract starting to churn some revenue? No, actually, it's MDB. It's the education business that drove significant growth in the U.S. We continue to see organic growth also out of MDB, and it is in line with the organic growth across the rest of the business. In this case, it happened to be largely driven by them in the U.S. market. Okay, that's helpful. Is that PointClickCare something going to be material, or is that just going to be small in the near term? It'll be material over time, but not in any one quarter. It'll build over time as skilled nursing facilities and long-term care facilities deploy our technology. Each contract, it requires a number of contracts in aggregate to be material. Okay. Just the last one here on the partnerships overseas, Origo in Iceland and OASIS in Saudi Arabia. I mean, can you just provide us any update there on rollout, how we should think about revenue growth there? Right now, in both cases, we are currently doing the technical integration with them. Having announced the partnerships, we've got to complete the technical integration, and then we approach the market together. We'll give you more information, I would say next quarter. With next quarter results, we should be able to give you more information on each of those. Okay. Thanks again, guys. No problem. I think that's back to operator. We have no further questions at this time. All right. Thank you very much to the operator, and thank you to everyone for joining us this morning. We wish you very safe and healthy times. Thank you very much. This concludes today's call. Thank you for your participation. You may now disconnect.