Thank you for standing by. This is the conference operator. Welcome to the Think Research Corporation Third Quarter 2023 results conference call. As a reminder, all participants are in listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star then one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star then zero. I would now like to turn the conference over to Sachin Aggarwal, Chief Executive Officer of Think Research. Please go ahead. All right. Thank you, operator, and good day to everyone who's joining us this morning. Also joining me on the call is our CFO, John Hayes, who's gonna review the financial results in more details after I discuss some operational achievements during the third quarter of 2023. Strength in our software and data division delivered a solid 71% organic growth in ARR coming out of our major platforms, which continues to be a really major focus of operations and now represents more than 55% of total revenue. That being said, unusual and unexpected delays and cancellations within the clinical research division have disrupted the rapid process improvements that we've reported in the previous three quarters and have set back this forward progress in the current period. We have acted quickly to mitigate the impacts of these divisions, in these particular divisions, while continuing to focus on growing our high-margin recurring revenue operations in order to regain our earnings momentum. Now, before I talk in more detail about our operational results, I just wanna briefly touch base on what we're becoming and where we think we have some major long-term opportunities. With our ongoing product development, we have found ourselves very well positioned to help Canadian healthcare systems everywhere to improve patient access to high-quality healthcare services where and when they're needed. As an industry leader in delivering knowledge-based digital health software and data solutions, our evidence-based healthcare solutions support clinical decision-making, improve access to services, enable practitioners to gain better capabilities and knowledge, and help to standardize care in order to facilitate better, better healthcare outcomes. The company has gathered a significant amount of data by building its repository of knowledge through its digital solutions, platforms, and group of companies. With this data, we strive to be more essential to our clients and their clinicians every day. This is reflected in our recent performance in the software and data division, in our pipeline, and I think more importantly, in the speed at which our pipeline is delivered. Our customer base typically includes enterprise clients, hospitals, large pharmacy networks, health regions, healthcare professionals, right up to and including provincial or state governments. Think's data and software division licenses its solutions to around 16,000 facilities for more than 331,000 primary care, acute care, and long-term care doctors, nurses, and pharmacists that rely on the software, content, and data that we provide to support their practices. Over 55% of our software and data revenue is recurring, driven by an increasing level of SaaS licensing, especially over the past few quarters. We expect recurring revenue to grow at a faster rate than total revenue for the foreseeable future. For example, in Q3, our ARR grew organically by 71% compared to last year. The bottom line, at least from Think's perspective, is that over 3 million patients and residents annually receive better care due to the essential data that Think produces, manages, and delivers. Think also operates a clinical services division, which includes primary care clinic and a medical clinic providing private pay elective surgeries. In addition, the company collects and manages pharmaceutical and clinical trial data in its clinical research division. Although clinical research revenue is typically contracted and scheduled well in advance, we sometimes suffer from individual study outcomes that are beyond our control, such as when a study sponsor is not able to formulate their drug on the agreed timeline, or a sponsor gathers all the data they need from a smaller number of patients than originally planned. For Q3, we had a significant decline in revenue in this division caused by trial study delays and a few cancellations. This surprised us. In response, during the quarter, we rationalized our services by closing our unprofitable St. Louis facility and are continuing to actively manage our expenses in this line of business. Notwithstanding the results in Q3, we have a very strong backlog, which continues to give us confidence into the future. In the first 9 months of 2023, the key drivers of revenue growth were clinical software and data, SaaS agreement with the province of Nova Scotia and mid-sized Pharmapod and LMS contracts. In our clinical services division, we have focused on operational rationalization since the beginning of the fiscal year to offset the impact of Ozempic on some of our revenue streams. During the reporting quarter, we also began to rationalize clinical research operations by closing our facility in St. Louis. We continue to leverage our talent and technology to deliver a robust and proven SaaS-based Digital Front door solution to the market, as well as a new SaaS-based learning management system. We're also gaining significant market traction with our Pharmapod solution, which provides medication safety to thousands of pharmacies and patients in North America. In addition, we're beginning to make progress towards bringing third-party software providers and third-party healthcare practitioners onto our key platforms, and that came to fruition in Nova Scotia. We've also started to work in more elements of artificial intelligence in all of our software and data offerings. We see these initiatives as ways to extend the solution and add more value to our relationships. Our platform partners are very eager to gain reach to over 331,000 clinicians. Now, I'd like to invite John Hayes, our CFO, to review the financial results in detail, for the quarter year to date. After we review the financials, I'm gonna conclude with a bit of an outlook, which offers some thoughts on how we plan to evolve and intentions and data service for clinicians. Over to you, John. Thanks, Sachin. Today's results, along with all of our risk disclosures, can be found in our MD&A and financial statements, which we posted to SEDAR earlier this morning. Now, before I outline our results, I'd like to address the covenant breaches that we noted in our MD&A financial statements and press release. We are actively addressing the breaches with our lenders, and they have been supportive. Our lending partners see that Think has grown. Well, we've shown strong earnings momentum over the past several quarters, and we're making good progress toward our goal of consistent positive cash flows, and that the downturn in Q3 was concentrated primarily in our clinical research business. Overall, we expect that our revenues will continue to grow, although not in a straight line, so we don't forecast that every quarter will be better than the one before. As this revenue grows, we expect that our cost base will grow at a slower rate, leading to increasing financial returns over time. We also believe that the predictability of our revenue is likely to improve because a larger portion of our data and software revenue will be recurring SaaS revenue, and that's a lot easier to forecast. Now, let's turn to our revenue and business line contributions. For Q3 2023, we reported revenue of CAD 19.2 million, an increase of CAD 0.8 million or 4% compared to CAD 18.4 million for the third quarter of 2022. Year-to-date revenue of CAD 63.5 million was up CAD 6.5 million, or 11% from CAD 57 million in the first nine months of the prior year. The sequential CAD 3.3 million or 15% decline in revenue for Q3 of this year, compared to CAD 22.5 million in Q2, related to a CAD 3.2 million decline in Think's clinical research business, which was the result of Think's study sponsor clients rescheduling and canceling contracts during the quarter. Now, these delays and cancellations reflect specific study decisions by the study sponsors, and they were not related to Think's operations. Let's focus now on what management believes is the key valuation driver for this business. Annual recurring revenue reached CAD 24.6 million at the end of September, representing growth of 71% compared to CAD 14.4 million at the end of September last year. This growth in ARR stemmed primarily from signing the minimum five-year SaaS agreement with the province of Nova Scotia, along with a steady stream of multiyear SaaS contracts. Think's net retention rate for ARR, defined as the total of retained revenue from existing customers over a one-year period, was 105% on September 30th. We're really encouraged that Think had essentially negative churn on a dollar comparison basis over the prior year. Gross profit of CAD 8.7 million for Q3 was flat compared to CAD 8.7 million in Q3 last year, while year-to-date gross profit of CAD 31.8 million represents an increase of CAD 4.6 million or 17% compared to gross profit of CAD 27.2 million in the year to date in the prior year. Gross profit was down 26% compared to the CAD 11.7 million recorded in the immediately preceding quarter. The flat year-over-year performance and the quarter-over-quarter decline reflects the high fixed cost nature of cost of sales in Think's clinical research business. Gross margin of 45% in Q3 represents a decrease from 47% in Q3 2022, again, due to the high fixed costs in the company's clinical research business. Gross margin was 50% in year-to-date, an increase from 48% in the first nine months of 2022 due to stronger performance in the first six months of this year. Turning now to expenses. Operating expenses declined to CAD 13.9 million in Q3 and CAD 42.1 million in the year-to-date this year, representing a decrease of 1% and 5% compared to the prior year periods. As a percentage of revenue, operating expenses declined to 73% and 66% in the 3 and 9 months ended September 30th this year, compared to 77% and 78% in the prior year periods, due primarily to the cost optimization program executed by the company-... Partially offset by additional investments in the development and marketing of Think's Flagship DFD and LMS products. One of the cost-saving measures Think implemented this quarter was to forego a review of the quarterly financial statements by Think's auditors at EY. In the current capital markets environment, this is a cost saving that some other TSXV companies use, and it makes sense for Think to do so also. We continue to work closely with EY on our disclosures and have been very helpful to us as ongoing audit clients, despite not being engaged to review the quarter. Adjusted EBITDA declined to a loss of CAD 1.5 million for Q3, compared to an adjusted EBITDA loss of CAD 0.7 million for Q3 in the previous year. Adjusted EBITDA for the current year-to-date was CAD 0.9 million, an improvement of CAD 3.5 million over the adjusted EBITDA loss of CAD 2.6 million in the comparative year-to-date period last year. The quarterly decline compared to 2022 was primarily due to the increased costs incurred in servicing new software and data services engagements, while costs associated with the clinical research line of business remained relatively level despite lower revenue. The improvements compared to the prior year-to-date were due primarily to improvements in revenue combined with operating cost reductions. The resulting EBITDA margin was a loss of 8% in Q3 and a profit of 1% in the year-to-date this year, compared to losses of 4% in Q3 last year and 4% in the first 9 months of 2022. Net loss was CAD 3.8 million for Q3 and CAD 9.7 million for year-to-date 2023, compared to CAD 6.5 million and CAD 20.1 million for the comparable periods in the prior year. The decrease in net loss when compared to last year is primarily due to a combination of higher revenue, lower operating costs, and lower acquisition and restructuring costs, partially offset by higher financing costs. Looking now at our balance sheet. At the end of Q3 this year, the company had a working capital deficiency of CAD 40.4 million, as compared to a working capital deficiency of CAD 39.3 million on December 31st, 2022. Of this deficiency, on September 30th this year, CAD 27.8 million relates to current long-term debt owed to the Bank of Nova Scotia and Beedie Capital, that has a term ending in September 2024. Because these balances become due in less than a year, they're now classified as current rather than long-term, the same as our reporting in Q3 last year. Both the Bank of Nova Scotia and Beedie Capital waived Think's covenant breaches up to the end of September. Management expects that the company will continue to have breaches of some of our covenants over the short term, including in the month of October. We're going to continue to work with our lenders to seek waivers for breaches in the normal course for future periods, if required. We expect our lenders to continue to be supportive of the company. However, as a result of these covenant concerns, the company's lenders have the option to demand repayment of their debt. Although management does not expect the company's lenders to take this action, this possibility raises doubt about the company's ability to continue as a going concern. We have repeated that disclosure in our financial statements and MD&A, as we did at the end of Q2. To address these concerns, earlier this month, on November 10th, Think entered into an agreement with Beedie Capital to provide up to an additional CAD 5 million of convertible debt under its CAD 25 million facility. Think is also actively engaging in discussions with our lenders regarding waivers for covenant concerns, as well as amendments to future covenants, and also maintaining focus on our previously announced cost optimization program. Although we can't guarantee a positive outcome based on preliminary conversations with Think's lenders and past experience, management is optimistic for a successful resolution to these issues. With that, I will turn the call back to Sachin. All right. Thank you, John. So increasingly, Think's software and data solutions are being seen as essential for constrained healthcare systems to improve patient access to high quality health services where and when they're needed. Our pipeline is full of these types of opportunities, and we are at late stages, in some cases, very late stages, of conversion on several. Our sales pipeline and backlog have never been stronger. We're very excited about the visibility into our software and data division we're working with, which is currently over 55% of total revenue. As we continue to scale this side of our business, we gain earnings leverage because these are our highest margin revenue streams as well. I'd like to just remind investors of what we're focusing on and why we expect to gain more leverage in our software and data business model. First, we're adding more users to current licenses by promoting adoption and usage. Year to date, we've increased our user base by more than 10%. There's a lot of room for us to increase users and usage of already deployed solutions, and as we add more users, our solutions become more essential to those licensees, which gives us pricing power and creates switching barriers. And here are some of the other things that are happening right now: Our new Digital Front Door solutions are solving urgent challenges for patient access to adequate health services, including primary care and emergency care for health networks and governments. Our learning management systems are being used to fill urgent knowledge and learning gaps through all lines of healthcare delivery, from hospitals to pharmacies, and to help standardize care across delivery geographies for our clients. Our connectivity solutions are helping patients get better referrals and practitioners to better manage their practices. Pharmpods is adding hundreds of pharmacies quarterly to keep patients safe from medication errors. Finally, with the user base now exceeding 331,000 clinicians, we believe that direct user licensing can generate entirely new revenue streams. We're actively engaged with third-party software and service providers to leverage our platform to add valuable features to these 331,000 and growing clinicians. Third parties are going live on our platform now, and our pipeline of potential service and software partners is growing. You should expect some forthcoming announcements that will really bring this to life. As we transform into a solutions-based organization focused on essential clinician data, we are excited with our annual growth rates and our path to profitability. Last quarter, we mentioned that due to the nature of some of our lines of business, we expect quarterly variances in performance due to project work that will show up in our results as delays or accelerations in programs. That did hit us in Q3. We're actively addressing these concerns and these occurrences, and we've begun to rationalize lower performing and lumpier, less predictable lines of business. In response to delays and cancellations in the clinical research line of business, we rationalized our operations by closing a facility in St. Louis. Additionally, in the clinical service line of business, we closed a non-performing clinic and sold off another one. We didn't announce that asset sale because, frankly, it's not meaningful enough to our operations. As a management team, we are committed to right-sizing our business, maximizing our margins, optimizing our costs, and focusing on growing the highest quality revenue streams available where we have competitive superiority. We have a track record of making hard decisions, and I'll bring your attention back to the time when we gained more than CAD 11.3 million of synergies from acquisitions and cost optimizations. This quarter, we also gained around CAD 2 million of cost savings by closing our St. Louis clinical research operation. We will continue to focus and optimize going forward, even as we dramatically grow revenue streams in the software and data division. To conclude, despite the lumpiness in revenue streams in our clinical research division, we're extremely excited about the prospects for Think over the coming quarters as we return to being a perpetually Adjusted EBITDA positive, high-growth company, driven primarily by both steady and step function organic growth and our high-margin, recurring revenue, software and data solutions division. That concludes our prepared remarks, and operator, please open up the line for questions. Thank you. We will now begin the question and answer session. To join the question queue, you may press star then one on your telephone keypad. You will hear a tone acknowledging your request. If you are using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star then two. The first question comes from Doug Taylor with Canaccord Genuity. Please go ahead. Yeah, thank you. Good morning. Obviously, the CRO, the clinical research segment, softness there caught us a bit off guard. So I got a couple questions about what's going on there, starting with, you know, the percentage or the mix of which you describe as, you know, slippage and timing issues versus outright cancellation, and then maybe helping us understand, you know, what you expect to recover in Q4 and beyond. Yeah, great. Thanks, Doug. So when... So, so it, it's a blend of both, and John can perhaps give details as to the relative percentage, if he has it. But, a great deal of it is slippage, and we often see, as you, as you'll recall, last year, we see Q3 as being a quarter, particularly over the summer months, where we tend to see a bit of slippage into Q4 and beyond. In this case, some of the cancellation is not outright cancellation of an entire research contract. It's cancellation of a portion. So it does occur on occasion where a clinical research client achieves their objectives on a smaller number of patients than is anticipated for a research study, right? And that actually happened more than once for us. And so as a consequence, the size, when we say cancellation, we also mean the size of the study declines, right? Relative to what's expected, and as a consequence, revenue is smaller. So we did have a sort of a material amount of this, obviously, in Q3. We do expect some recovery into Q4, but perhaps the more important thing, Doug, is that we will have an even stronger backlog, in fact, like a very, very strong backlog exiting the year, much stronger than we had at the start of the year, which in and of itself was stronger than it was the year before. So that gives us overall momentum confidence, but of course, within quarter to quarter, we have some variances. John- Go ahead, John. ... Only that, just draw your attention to some comments in the MD&A and the outlook section, where we say that we expect there's gonna be continued impact of these changes through the end of 2023 before normalizing in 2024, which aligns with Sachin's comments, that, you know, we've got pipeline coming in. We see, you know, some operational issues that we need to fix, right? Which is in terms of scheduling studies and so on, we're getting on top of that. And so, you know, in Q1, Q2, we think that we're going to be back on track. Some of these issues will have bled into Q4, but not as bad as Q3, I think is what Sachin said, and that seems to be the way things are playing out. And then, maybe just to expand or, or put a finer point on that, you talked about the closing of the St. Louis facility, driving an incremental CAD 2 million in annual cost savings. Like, to what degree was that reflected in Q3 versus what we should expect in Q4? And just, you know, just helping us to chart the path back to, you know, break even and profitability. Do you wanna take that, John? Yeah, sure. We closed that facility in late Q3, so the improvements will show up in Q4 and a little bit in Q3. Like, I think our actual closing date was September 5th, but then there are some additional costs that flow through in the last three weeks of September. So that should give you a sense of timing. And so, you know, triangulating from everything you've said here, is it fair to assume you, you expect, you expect still to be, you know, below break-even profitability then in Q4 and Q1 and Q2, is where you expect to inflect again? Is, is that a, a fair understanding of, of what you're trying to say? We're not gonna give guidance at this time, Doug, but, but I would say that we expect Q4 to be just overall to... to... Is your question relating to the clinical research division? I'm talking about the whole, the business as a whole. Yeah. Q4 is always a strong quarter for us, and even with a weaker clinical research division in Q4, relative to what we had originally planned for, Q4 is generally a good quarter for us. So we expect it to be stronger and we expect to continue growth, of course, into 2024. Okay, I'll pass the line. Thank you. The next question comes from Rob Goff with Echelon Wealth Partners. Please go ahead. Good morning, and thank you for taking my call. My questions would be perhaps a bit further along the same lines as Doug's. Could you talk to the outlook for the CRO in Q4, and just how much visibility do you have on the Q4? And then in terms of giving us some sort of, or helping us to manage our expectations for the new year, can you talk to where the pipeline might be at the end of the year and how that might compare year-over-year, i.e., is it up 10%? And does pipeline reflect minimums or expectations? Okay. So in respect of the clinical research business, the pipeline, or the, rather, the backlog is significantly stronger year-end. We don't yet have a sense of exactly where it will land. We've got a number of pipeline conversion items that may fall into November, December, and we've got... They may also bleed over into Q1 of 2024. So we'll perhaps be able to provide more detail on that in the future. We do have a good amount of visibility into Q4 because, of course, we're now at the end of November. So John, but again, while we're not providing guidance at this time, John, did you want to add anything to that? No, I think you've covered it well. I mean, just in terms of backlog, to your question, Rob, we have enough studies to meet our revenue targets for Q4. The challenges we face is occasionally, and a surprising number in Q3, of study sponsors saying, "Oh, wait a second, we're not quite ready." And so that, you know, that causes us problems with our clinic scheduling. So, I think that, when you talk about is the backlog sort of a given, like, is it real backlog? The answer is yes. There are some possibilities and it's contracted. There are some opportunities and some outs, like if there's a study that's five cohorts and they get the data they need after three, they can cancel. But, it's more in terms of the schedules moving and our, you know, our inability to, on short notice, plug a hole in the schedule with, with other studies that are in the backlog. I hope that helps. Thank you. And you made comment in terms of the software side, that there could be announcements within the forthcoming. Is there any additional color that you could provide on that? Yeah. So we have, we've got a significant number of larger contracts that are in our pipeline. I think we even we had talked about this at the end of Q2, with our Q2 reporting as well. Of course, with these very large contracts, they take time to convert. These are complex clients, and they have complex needs, and so timing can be a little bit uncertain. That being said, the pipeline is, again, the pipeline is significant, and it's quite mature, and these relate to our digital front door solutions... as well as from the Pharmapod solutions. So we feel very, very positive about our pipeline heading to the end of the year and the start of 2024. Exact timing, always a little bit uncertain. Okay. Thank you, guys. The next question comes from Jérôme Dubreuil with Desjardins. Please go ahead. Yes, good morning. Thanks for taking my questions. First one, again, on the St. Louis closure there. Are there costs related to this decision that we have not seen in the quarter yet, that are coming? Other one? Yeah, please. St. Louis is in Missouri, which is a right-to-work state, meaning that we do not have statutory severance. Yes, there were some costs. Those were almost all captured in Q3. There may be a little bit of wrap-up in terms of moving some samples from St. Louis to Canada. We haven't quite got that all sorted out yet, but for the most part, the costs are already captured in Q3, other than some, you know, smaller amounts that we're still nailing down. Okay. Thank you. Second one I have is, you know, you, you've talked extensively about the covenants in the, in your disclosures, so that's appreciated. But I, I wonder if, if there are some maybe softer covenants that, that you have in terms of the discussions with, with the banks, or the lenders. What are they looking for, going forward? Are there milestones that, that are, that are set at this time? Yeah, I don't completely understand your question, Jérôme. Maybe you could expand on that a bit. Yeah. Yeah, no, sure, no worries. So, basically, what are the lenders looking at to assess your progress? How are they assessing your progress towards success? Okay. So they track, they track three things quite closely. The first one is minimum liquidity, so they wanna make sure that we have enough cash to run the business. And so, you know, things got, tight. You know, we looked to our partners at Beedie, and they stepped in with some additional, capital, which is... And they did that, you know, as needed, and, that's very supportive. That also makes the relationship with, Scotiabank easier. So that's sort of the first covenant. They also do look at our, the company's performance, right? They look at the, adjusted EBITDA, and, you know, they wanna make sure that we're tracking, towards the, you know, the targets. So they do look at that one, and, we do provide them with forecasts, and so they can see where we're headed. And that gives them, along with the backlogs and so on, and the pipeline, you know, that gives them comfort that we're going in the right direction. And then finally, you know, the overall debt relative to our gross profit is sort of the third main thing that they look at. And so, you know, while the gross profit's going up, and, and that's good, you know, the debt is also going up. And so that's something that we're all constantly keeping an eye on, because there are debt repayments that happen with Scotiabank, around CAD 500,000 per quarter, starting in Q4. and so we just wanna make sure that with our partners at both Scotiabank and BD, that we have enough capital to run the business as we grow it, because I think collectively, the group's pretty excited about the opportunities in front of us and how the pipeline is converted, how the ARR has grown, and, you know, how much more it can grow in the coming quarters. Thank you. And then the last one I have is on the data solution side, on the Digital Front Door. How do you feel you are alone in that process in terms of supplier? I'm sure your potential clients are assessing all their options, but do you feel it's more of an assessment of how the product can be integrated, or are there other clear competitors that you still have at this point for the potential contracts you may have? Sorry, Jérôme, could you just repeat the last part of that? My phone got out there. Could you just repeat the question? Of course. No worries. So I'm wondering if you feel that you are alone in the process of winning the contracts in terms of digital front door, or if you believe that there are other competitors that are very serious that could also win the contract, or how do you feel your position in those RFPs? Yeah. Thank you. Thanks, Jérôme. In certain of the cases, we've already been notified that we are the winner of the RFP, and so there are just legal negotiations, conclusion of procurements, et cetera, et cetera, that are underway. In other cases, due to the unique nature of our offerings, we expect that there is no competition or that we are sole sourced in respect to those, in respect to those agreements. Those are for digital front door. For Pharmapod, we find that our product is in a league of its own... particularly for retail pharmacy clients and large chains. So similarly, we tend to have little or no direct competition in respect of those, those procurements. Those procurements tend to be more private sector as opposed to public sector. That's very helpful. And maybe just one follow-up on this one. If you're already the winner of RFPs, this is not something. This is something that you wait a little bit to disclose, because it's not necessarily set in stone. Is that how you have operated to disclose those contracts in the past? Or are we just business as usual while we're waiting for all the process to be concluded before these are announced? Yeah, exactly. It's business as usual, Jérôme. So there's typically a time gap between the awarding of an RFP, and then there's, of course, contract negotiations, there may be some privacy and security questionnaires and diligence that are then concluded and so on. So there's some process between the award of a contract and the signing of the contract, right? And it's typically on the signing of a material agreement that we that we announce the actual contract. Makes sense. Thanks a lot. This concludes the question and answer session. I would like to turn the conference back over to Sachin Aggarwal for any closing remarks. Please go ahead. Thank you, everyone, and thank you for taking the time this morning. Of course, we've had a surprisingly a surprising downturn in respect of our clinical research division for Q3 of 2023. That being said, we do want you to turn your attention to the data and software division of the company, where we're seeing really, really remarkable organic growth. We have very, very strong pipeline heading to the end of 2023 and into 2024, and, and we have, we've got really robust gross margins. So we are, we're very pleased, and we're very excited about what is yet to come for us in respect of the data and software division of the company. With that, thank you for taking the time, and we wish you all a good day. This concludes today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.