Hi, and welcome to today's presentation, where we have the pleasure to present Audientes. To help us through today's presentation, we are joined by CEO Steen Thygesen. As always, this event is your Q2 half year, 2023 reporting. I think, a little bit more insight, after your big strategy change we got out of, out of this report. So I think that is what we will hear a little bit more about. As always, you can ask questions down in the box down below. We do this in English due to that we are- you are, you are on the Swedish stock market, so we might have Swedish investors. But do feel free to ask in Danish. I will try and translate to the best of my ability. You can also try Swedish, and I will try to, maybe I will have a little harder time. But for now, I think I will hand the call over to you, Steen. Well, thank you very much, and welcome to everyone who is watching this, either in real time or at a later stage. So yes, so now we are reporting on our Q2, and also, of course, looking back at the half year numbers and sort of key events that took place in the beginning of this year. We have prepared a flow that will take us initially through the financial highlights and then look at where are we with our basically ongoing capitalization plan. And then looking at the product and what has actually happened in the market, and then specifically go-to-market update for both India and China. And then you can say, looking at the what the forthcoming events that we currently have planned are, and the reasons for why investing in Audientes. So let's. I guess many of you will have read our quarterly and half year report already, but these numbers are to be found in the report as well, and there's more detail on each of the different issues that we are highlighting here. But first of all, this first half for us was extremely busy, but it was also you can say saw a number of things that we took in hand in order really to sort of look forward and then trying to address issues in our operating model in India specifically that you mentioned, Michael, in terms of how we are going to market there. But essentially, the revenue we recorded for the second quarter was DKK 1 million, for the entire half year, it was DKK 1.3 million. So you can say we are moving forward at a pace that hopefully will see continued growth the coming quarters. The operating income we also had derived in this category of other income was around DKK 752,000, and that really was some subsidy from some marketing activities related to Japan, and also a sale of kind of project hours on a customer project. And all in all, of course, that adds to the cash income in the business. I would say operating profit-wise, we are still kind of investing in the business. This year, we saw the second quarter being significantly less than the, the sort of overall performance last year when we invested a lot in actually developing the product and starting to manufacture it. This year it was more about going to market, and then in the same time, we have carried out a number of cost savings. So quite significantly, I would say, the impact will be seen more in the second half this year, but we have been sort of slowing down from a cash burn. But although we did invest significantly, around more than DKK 8 million in the business in this first half, so of course, as we have been reducing staffing and so forth, we are really now starting to see the effect of that. I would say overall, we took care of a number of, you know, you can say, outstanding trade receivables related to sales carried out in 2022 that were not really kind of received as payments in cash. We took care of that in the course of the second quarter. I'll touch on that a bit later, but essentially right now we have a trade receivables of around 900,000 DKK at the end of Q2, which of course is not necessarily the situation as we are moving forward. We are seeking to really get paid as we are selling the products to our distribution and retail partners. But looking at the overall financial performance, sort of grouped after, you can say second quarter, first half, and so forth. Around DKK 1 million in sales revenue, second quarter. When you look at these numbers and compare with last year, I put sort of an asterisk around the Q2 2022 and half one 2022 numbers because, as you know, probably that we took a decision to basically take back unpaid products from partners that we have sold products into, but who had not paid us for those products. So we have been quite busy kind of clawing back the products and have been upgrading them to the new software release we have just put in the market this quarter. So now you can say we are starting from more or less a clean slate this year. I think that's kind of... I've touched on the key numbers already. Moving forward to the capitalization plan. I think we have been, of course, discussing and basically in May, we took out a new kind of smaller bridge loan from our existing bridge lenders. We are also right now in dialogue with the same group of actually addressing the larger bridge loan we have and those, the terms that are related to a program prolongation, kind of like extension of the loan or a refinancing of the kind of set of loans with sort of different terms and so on. So we are in the middle of that process, and we will be announcing about that when we are ready... What we do see, though, at the very end of second quarter, was this new partner in China, Hengtong partner company, who has been also investing in Audientes in the form of a directed issue of new shares. So we are quite excited about that. It gives us a new kind of, you can say, leg to stand on in the Chinese market with a partner who we think together with us, can really start to also realize some, some benefits from being present in that market. We are still open, though, to other partnerships, and strategic investors, and of course, we are continuing to evaluate opportunities in that regard. We talked a lot about our, our product kind of challenges last year because we launched a product, called Ven, a self-fitting hearing aid in the Indian market, where we, we encountered some challenges with the amplification levels. Basically, people asking for, can you actually address a heavier hearing loss? That, that we were initially setting out to do. So we've been spending effort last year on really creating an improvement in the whole software platform, and we launched that earlier in the year, and we started to ship products with that in Q2. In Q2, we've also been, of course, upgrading existing stock to that new software platform. And what it means now is that for both the Ven product, our self-fitting hearing aid, and Companion, our hearable, we now have a much improved and more performing platform from a kind of amplification point of view. But we also have one with very clear sound and noise reduction that really move our product up a notch, I would say. So we're quite excited about that. Of course, now in India and Nepal, where we're going to market with Ven, this really means that a lot more people with more significant hearing loss can benefit from our solution than they could before. For the Companion product, which is the product we are introducing now in China later this year, this really means that the overall sound experience has been improving significantly. So for us, of course, and for our technical team, this has been a very busy period that culminated with, I think, a really good offering in the market. Now, also with sort of language packs, so basically supporting a number of languages, including, of course, English, Danish, German, Swedish, but also like languages like Spanish, Japanese, and soon also Chinese. So for us, again, that supports our foray into the market around the world. So then, basically functionality-wise, has been improved with a number of you can say hidden qualities, but overall the value proposition for basically an affordable and accessible self-fitting hearing aid is kind of the same with the unique fitting paradigm that we're using and NAL-NL2, which is the industry standard and so forth. This really means we are still having a really interesting offering in the market, and that's what we are now, of course, going to market with in India in a slightly different way. Product-wise, we have a portfolio, so we are able to address both the kind of regulated markets as well as the non-regulated markets, where it's more about consumer electronics and getting them in front of people in different sales channels. But from a, you can say, product point of view, so Ven today is a product we are selling in India and in Nepal. Those are the countries where this is an offering, and we announced earlier this year that we have secured the first partner in Nepal, and we have started to ship products to them in the second quarter. And with India, we made this significant change also in the second quarter, where we partnered with earKART as a new exclusive distributor who is our main go-to-market partner across a number of channels, both business to business and B2C in India. So we have been really changing a lot of our execution platform in order to now start working with them on developing these different channels. And of course, we have significant expectations for what this is gonna amount to, based on the announcement we made earlier in the year, where we can see earKART becoming a very significant part of our expectations from the coming twelve months from when we launched with them in May. Companion for us is still, it's a quite young offering in our portfolio, but we did start marketing and selling this in online retail in Europe in the second quarter. And now we're starting to also put this into new markets such as China. And of course, this is you can say our lever for also entering other markets where we see a good fit. We did receive an initial order prepaid by Hengtong for DKK 562,000 for products that we are now working on delivering, subject to local go-to-market readiness later in the year. This, of course, for us is super exciting as a complementary leg to stand on, as I said earlier. So there is a question actually here, Steen. Why is China already pre-ordering? It's first in 2024, if I repeat your the question here, and I also think I read that in your report, that it's first there it starts selling. So, so- Right ... pre-ordering now, is that a way of- No supporting you, or is it a way of, actually want to be ahead of, Mm ... any supply chain issues or be ready? ... No, actually they, we aim to deliver the products this year, with the kind of local certification needed to enter the Chinese market as a consumer electronics device. So we are working on that right now, and as soon as we get that, we will essentially be shipping the products to them. And the prepayment issues was really, you can say, to counter this issue we had earlier last year, where we had significant outstanding stock with our partners. So now we have taken a different approach, and essentially we agreed that, in order, you can say, to make this work, we ask for, you can say, the initial payment for the initial order upfront. So this is- So, the reason why China first is 2024 is local. You need to have it certified in China, so that's your expectation for- Yeah, but it's not, it's not 2024. I think, as it says on the slide here, we are delivering them in 2024. Sorry, 2023. 2023, yeah. Yeah, yeah. So it is our aim to deliver them in kind of late Q4, so they can actually start selling them at that time. So we are working- Okay ... with Hengtong right now on the different go-to market aspects on, on, you can say, what channels, initially and so forth. So, so this, this is the aim. Perfect. Thank you. Yeah, so thanks for clarifying that. So the other thing I would say, you're seeing me shaking hands with Rohit Misra from earKART, and of course, we have been busy over the summer working with them on essentially, you can say, onboarding them as an Audientes partner, and now they're starting to go to market. So I think the coming month and years, of course, we'll see steadily progress on that. India is, of course, a huge country, so we are essentially trying to merge our existing partners with the ones that earKART also has, and hopefully out of this, we're becoming a very, you can say, solid base to start marketing and selling Ven in India going forward. earKART is now live with this sort of website, where you can see both the Audientes Ven offering and the more classic hearing aid that earKART is also offering to the channels, called EQFY. And sort of pricing-wise, EQFY as a kind of dual classic hearing aid retails for around INR 100,000, whereas Ven retails at INR 42,000. That's an increase in the retail price from previously because of, you can say, the new platform with the sort of improved features. So we're pricing that in a way that it sort of should basically fit in the market quite nicely. Excuse me, Steen, for not- Yeah ... having the Indian currency in my head. Mm-hmm. in dollar- Yeah ... or Danish krone around price, if you - Yes ... give us that. Well, let me just check here, because this is, essentially, of course, going a bit up and down, with- Yeah, yeah, I understand that. But, um- But just around, so we have a feel for So it is, the $42,000 is around 350, yes, DKK 350,000. Okay. INR 100,000, we can say that's around DKK 8,300- Danish ...... Danish krone. So, that is kind of the price that we also kind of see being possible in other markets. But, of course, they are pricing individually for the local market. If I remember correctly, you indicated at one point in time that between $300 and $400, was that your initial one? So, Right ... that's, is, was that correct? So- Yeah ... so get a feel of it. So it's 20% higher maybe than- Yeah ... than what you initially thought. Yeah. Yes. Perfect. Thank you for clarifying that. Okay. Now, just very briefly then on the Hengtong. So we have sort of now a partner that has kitted out and opened basically a customer service and kind of support center in Shenzhen, which of course is one of these large young cities in China, where there's a lot of technology and commerce taking place. So I spent some time there in July, and getting really to understand and work with the team more. We're very excited about this. For us, it's nice to have another large market where we can actually start hopefully making some inroads too, in the future. Right now, the aim is, we're going to market with Companion, but then in the future, the expectation is that the other products from us, including kind of the ones of medical-grade hearing aids, will also be introduced in China. So this is a hopefully starting of a good long-term collaboration in that regard. There's of course e-commerce in China is huge, and you know, how you penetrate with a sort of offering like ours, that's what we will see Hengtong focusing on with their online merchants and different other go-to-market partners. I think we're sort of getting to the end now of this set of slides that I prepared. So I think that the rationale for why investing or continue to invest in Audientes is that we have this, you can say, joint focus on both the sort of middle-income countries like India, I would also say China and Brazil in this regard, where there is millions who needs affordable hearing solutions, where there really is, you can say, millions that doesn't have a solution even today. And then there's this other opportunity that we're also looking at in countries like Japan, U.S., and maybe also E.U. at some point, but where there is still people who are looking for sort of different solutions, not necessarily medical, but something where they can help them hear better. This is kind of where we are specifically seeing our product, Companion, also being a really good fit. So we want to start making inroads in those markets again, step by step, as we have bandwidth and resources to do that. So I think overall, from a proposition point of view, we have this opportunity to extend existing markets with new quality solutions across both regulated and non-regulated product categories at competitive prices. And I think today, with those two products we have, with the upgraded software, we are in a good position now. So we are sort of, I think, on the way forward in a nice manner. From India, we are now moving to China as well, and then over time, in more and more countries around the world, is what I hope and believe we can achieve. So that essentially concludes my presentation, and we have a financial calendar that I look forward to meet you all again in November or maybe earlier. We need to, of course, expand this calendar with dates in 2024, and we are soon going to publish those dates as well. So thank you very much, and look forward to questions. Yeah. Let's jump into the first one. How far away are you from having secured your capital needs, you know? If I remember correctly, you indicated around DKK 6 million to bridge from where you are now to you hopefully cash flow positive in the business. So how should we think about—you've gotten DKK 1 million from the Chinese, the prepayments from the Chinese. Could we see that also as part of that? So some indications on how far you are and what your next steps are here. I know you can't be specific, but where you are looking for that extra money? Yeah, and I think that's a good question, and we haven't sort of published a master plan obviously around how we're going to do this, but we have really taken the view that the best way for us is to prove by, you can say, actually delivering to the market now, that we are heading in the right direction. So we also said, "Let's do this in sort of like step by step," almost like as a ladder, where we start with maybe like, you can say, the smaller bridge loan in the beginning of the kind of well, around May timeframe, plus then the Hengtong investment, plus the coming, you can say, rounds of either directed issues or other form for capital raise and loan financing, for that sake. So we are sort of on that ladder right now, and we are moving forward in a way where we will be building up kind of the, you can say, the funding as we move along the last of this half year. And then there's a question: How is Companion selling in Europe? Are we on the hundreds now, and which market are it sold in? Yeah, I would say in Europe, to be frank, we have really been focusing more on actually developing the Asian market. So we really looked at with our organization as it is currently, what do we have bandwidth to focus on? So we have kind of downprioritized the European marketing in favor of focusing on both India in particular, but then also on China and Japan as the sort of markets where we think this is where we actually have a really good opportunity to penetrate. So we have not really sold, I would say, hundreds in Europe yet. We are really, you can say, continuing to look for channel partners, but we are not yet out selling in large quantities in Europe. So right now, our business is significantly skewed towards Asia, as it kind of should be probably where we are right now. But, yeah. There's a question here, actually, regarding your, your business to business or getting new partners. Yeah. There's a lot of major trade organizations around the world around this year. So is that a way—are you going around to the trade shows and so on and try and get new partners? Is that a way, or is there other ways you are getting those partners? This is specifically to the trade shows around the world. Are we seeing you out there and trying to get partners, or is that too expensive way as it is right now in your situation? No, but again, it comes a bit back to where we are focusing and prioritizing. Right now, we actually have you can say, enough to work with right now in terms of both in India and in China, with partners there. In Japan, we are spending basically time developing through some you can say, channels and that we know and have access to. In other markets, I've been attending Mobile World Congress for many years in Barcelona every year, and of course, go there to meet and talk to partners. But we are not spending a lot of time on trade shows, I would say, around the world at the moment. We're really more focused on actually executing. Then are the cost levels in this quarter a level that you expect going forward? Is that a good proxy or for what- No, not, no. ... we should see? Do you have a more- No ... do you have more cost cutting coming in Q3? Yeah. Is everything in there in this quarter? Yeah. The effect of the different reductions we made in force and so on last quarter and the quarter before are starting to have an effect now, really in third quarter. Really in third quarter. So that's where we should maybe look for a It's not ... cost level going forward, not this one. We've lowered our you can say, kind of fixed cost base, but at the same time, with many of the things we're doing, we're using external consultants for, you can say, as experts for different tasks, and we're also using, of course, development partners and so on. So we are as we start to do certain things, we will of course, be utilizing, competent people, as we've done in the past, but our fixed cost base has been significantly reduced. Okay. Yeah. So, if I hear you right, and maybe also because you are finished with the development, a little bit lower cost base going forward, we could- That's correct ... expect to see that. Yeah, I think that that's safe to say. Yeah. Yeah... Then there's a question: how is the sales out in India? Do we have now some? And there's also a question, why did sales actually first start in July and August in India? So first, do we have any indication of the sales out, which is of course, selling in- Yeah. Is one thing, but selling out. And secondly, was it first in July and August it started in India, really selling? Yes. Yes, Yes, exactly. So we're a bit early on that curve in India still with the new partner. I think there is these, as I think I also mentioned on some of the other slides, there's these many different channels now online and more classic retail opticians and classic hearing clinics and so on. So that we are really working on enabling earKART to go to market, and they have, of course, their own execution. So I think in sort of later this year, we will start to see the real effect of this. Perfect. And then, what product is going to China? You said that you have put a lot of stock warehouse or a lot of your product into India to get it approved. Yes. So will you take from that to go to China, or do you need to produce new to supply the Chinese market? Is there other certification, other specifications? So a little bit about whether you can move some stock from India to China, or it needs to be new products. We prefer not to move stock from India, but we have some stock outside India that we're gonna start kind of fulfilling the initial orders with. Mm-hmm. And then, I think, ongoing we will be producing kind of new products for those markets. Perfect, and then there's a- And also because the localization for going into both China and Japan from a box point of view and so on, there's quite a few things like, gift cards and all things that has to be in the boxes, have to be in the local language. So we're doing a quite deep localization of the product in order now to introduce them in these new markets. Then there's a question here: When do we expect earKART will lay the next order? Is this something we can expect in some of the coming quarters, and will it be around the same size? I know you can't... you can give us indication and probably not tell us everything, but. Definitely in the coming quarters, but I will also say, probably not at the same size. It'll be more sort of... My expectation would be that they would order when they need in certain, you can say, buckets, amounts of products. That's what we have been discussing in the past lately, so. Then as an investor or an analyst, I will ask you, is that something you will send out newswise? Because, you know, it's important to follow that. Is that a big enough event for it to be an investor news? Maybe not a company announcement- Yeah ... but investor news, so you could get a feel before the next reporting. So, I- Yes, I- Would that be potentially a news coming from you? Well, that's a good point. I, I think it depends on the size and also is this something that was expected or is this something that- I know, I know. ... you can say? And then of course, we consult with the stock exchange on these matters, each time. And I think, right now, where we are, the order that we received from Hang Seng, for example, was of a size where it was substantial, so we communicated that. Maybe in the future when things are moving forward as expected, we may not announce every time. So, I think we have to see what sort of what will deserve a- I understand, but you are focused on it and saying, you know- Mm ...it, it's important for us, for investors to know. So if- Yes ... it's big enough, you will try and Yes ... and give it a news flow between the reports. Ab- absolutely. Perfect. Do you see the opportunities in, in the U.S., or are you only focused on an existing market right now? But of course, the U.S. is very, very interesting. I think you can say in order to step in there, I think we need to be at a different stage than we are right now. That's where, when we look at all the options we have, we have enough to do right now, and I think the U.S., we will get to that, but it won't be in this year. Then there's a question here: How is it going with the medical device approval, and when is it in place? And also about the certifications in India, like, if you can touch a little bit upon what you are looking at at this front for being able to sell in India, China, Europe, and so on- Yeah ... where you are in those steps. Exactly. So now, of course, we have more than India to think about in that regard. So some of the activities can be combined, and other activities are quite specific to each country. So we have been looking at that a good deal over the summer to figure out what is the best approach. So we are still having in mind that next year, 2024, is when we will be putting in the, you can say, the actual products with those local approvals in the market. So that, that's the... You can say that's the coming focus for our organization now, where we have the products at a good stage, but what is that we will be actually putting in the market? Is it, you can say the existing version with medical device, or is it an enhanced version with the sort of requisite approvals? We have been spending some time looking into that, and I think this is what we will be talking more about at a later stage. Perfect. It's the same for the certification of the medical- Yeah, they kind of go hand in hand, because either if it's a consumer electronics product, there's a set of certifications that is, you can say, more straightforward and simpler. Whereas a medical device, it's a more lengthy exercise that depends on also the sort of quality management system, operations, and other things in the company as such. So not just the product. Yeah. Perfect. I think that was the last question. Steen, thank you for taking the time, for taking- Yeah ... us through the results and answering questions. Thank you to the audience for listening in. May everybody have a nice day. Thank you very much.