Get started. Good morning, everyone. My name's Harry Simeonidis. I'm the President and CEO of Intelligent Bio Solutions. Today, we're going to be talking about a great product that we have commercially available outside of the U.S., I'll get into it in more detail. Just a forward-looking statement, just so everyone is aware. What we are, we're a medical device company, what we're really focusing on is technology that is non-invasive, that you can do real-time, and really close to the end user. All our testing is really about pain-fr ee, non-invasive testing. What I want to talk about today is one of our devices, I've got it here, and some cartridges here. What this does, it does drug testing. If you're familiar with drug testing today, you can actually do a urine test or a saliva test. What we do with our one, it is a lot different. Let me just go through it in concept in terms of what drugs mean and drugs of abuse and how it goes through your body. Anyone that ingests any kind of drug, marijuana, cocaine, whatever they do, it goes into your body, and your body starts processing, then it's the metabolic output of that drug is what we detect. Throughout all of our body, we excrete fluids. It could be either from urine, it could be from saliva. What we use is sweat from the tips of your fingertips. What we can actually do is detect drugs that you've ingested in your system from the sweat of your fingertips. What that means is you can actually do a drug test really simply by doing three simple steps. For us, it is on a cartridge. You place your finger on this cartridge, I'll do a quick demo on it. I won't actually do the drug test. This is our cartridge. What you do is you put your finger on the actual There's a little pad here that collects the sample of your sweat. You use each finger. You press it on the tip of your fingers about five seconds each time. Within a minute, you've collected 10 samples because you use all fingers. We've got a sample of your sweat. What we do then is we close this little loop here, press the buffer solution, then we place it inside our machine. Within 10 minutes, you get a result to see what is in your system. Where's my clicker? What is the benefits of this? If you've ever done a drug test or if you ever have to do one, the most commonly way to do it is doing a urine test. Here's some of the problems with a urine test. No one wants to do a urine test in front of someone else. That's problem number one. Collecting the sample is problem number two. I can collect the sweat of your fingertips right now. You don't have to say, "Oh, I can't go to the toilet. I don't have to urinate." There's no excuse you can't give me a sample straight away. With a urine test, we have to wait. "Are you ready to do a urine test? Have you got enough urine to do the test?" We have to watch you. We have to handle this warm substance and then test all this. There's so many different problems with doing a urine test. With us, it's as simple as put your fingers here, insert it in the machine, we get a result within 10 minutes. Done. Easy, simple, non-invasive, very fast. It's not what I would call watching people urinate. You can't game it because you can see me, what I'm doing right in front of you. Watching people urinate is a different aspect altogether. If you can see here from the chart, here are some of the different kinds of tests. There's a lot of reasons why ours is a lot better. I think the key one for us, the key differentiator, is the fact that our window of detection is the smallest within industry. What does that mean? A window of detection means is how far back can I actually measure to see if you've had something in your system, that you've taken the drugs. You would say, "Harry, it's better to have a big window of detection so you can detect people that's longer because we want to know what's happened five days ago or a week ago." That's not the case. What we're trying to do here is see the closer you've ingested something in your body, the more it infers if you're impaired. I'll give you some examples. Today, a lot of places in the U.S., and in Australia as well and across the world, You can have cannabis, right? You can smoke a joint if you want. If you smoke a joint on a Saturday night and you turn up to work on a Monday morning, are you high at this point? Probably not, right? Unless it's really strong stuff and you've had a lot of it. Usually you're not high, right, on the Monday morning. If you on a Monday morning go do a urine test, it will come back that you're positive for taking marijuana, but you're not high. You've had marijuana, yes. The thing is, the shorter the window, the better or more accurate it is to say you could be high because we've taken the test a lot closer to the point that you've taken the drug. For us is we've got a window of detection for anywhere from, depends on how it goes through your body, from 12 hours to 24 hours. Okay? If I've taken any drugs within that window, it will come back positive. Right? Which means, okay, you're closer to the point you could be high. What we're trying to do, it's like an alcohol test. An alcohol test today doesn't see if you drink. It wants to see, are you drunk? That's the whole purpose of having drug tests and alcohol tests. Us, it's the same thing. We don't care if you take drugs. We just want to know if you're impaired at the point that you're taking the drug. That's the most important aspect. As we legalize drugs more and more, the shorter the window of detection, the more important it is. For example, if you do a urine test, it can actually detect sometimes seven days, sometimes up to 14 days if you've had anything in your system. Saliva tests, anywhere from three to up to sometimes five days. If you want to see if someone takes drugs, if they are a drug user, this is not the test for them. You can go do a hair follicle test. It's probably the most accurate of things and goes back six months to see if he's taken the test. We're not here to look at people that take drugs. That's a different thing. We're here for drug testing at the workplace. That's one of the most important. Here it is again, just our window of detection. We have got the smallest window of detection, and that's why we're seeing a lot of our customers changing from urine or saliva and coming to sweat testing. Let me just talk about the market real quickly. If you don't know, unfortunately, there's a lot of people that take drugs, okay? It's becoming more and more prominent. What happens is it actually costs industry a lot of money. It's not only because of, there's accidents, there's loss of productivity. There's theft at the work site. There's a lot of aspects that start affecting companies from this drug abuse. There's a huge opportunity for people to start testing more and more people in terms of drugs. The U.S. market, it's growing. It's close to a $4 billion market, and it's actually growing more and more. What you'll see is as we legalize more and more drugs, drug testing will become more and more prominent because they have to screen workers to ensure that their work site is safe. A huge opportunity for us in the U.S. Just some other numbers in terms of the growth, in terms of what it is and the aspect. What you can see are these are the four most common drugs. We test for all of these drugs as well. Marijuana is probably the highest. You've got cocaine, methamphetamines, heroin. Opioids is another big problem. It's a big problem. It's growing. It's not going away, and we've got to test more and more for it. Here's an interesting statistic as well, that at least 70% of people that abuse drugs in some way, or alcohol, are employed. The reality is people are on work sites that do drink or do take drugs, and some of them are impaired at the point. Okay? Remembering, these are just some of the, in terms of some of the industries that we see that a lot of drug testing is taking place today. You can see the big ones in terms of construction, transportation, engineering, manufacturing. Anything blue-collar working is where you really want to test more and more. Currently today, we do sell this product. We sell it internationally. We have got a large customer base. These are just some of our customers. We do not sell this in the U.S. at this stage. We do sell it in the forensic market only. We need to get FDA approval to have this. It classifies this as a medical device. Everywhere else we sell it, they don't deem this as a medical device. It's a screening device, right, for non-medical applications. Because we're just trying to see if someone's fit for purpose at work. U.S. needs FDA. We're going through that process as we speak. If you want to know in terms of where we're up to, come and see me later, I'm at the booth, and find out, and I'll give you a kind of a brief. What you can see here, we're getting close to 500 active accounts. When we see active accounts are those customers that have ordered and repeat order. Right? It's important because what you've got here is this is the initial purchase. They'll get a reader and a couple cartridges. Recurring revenue is through cartridges, and that's how we track active customers. We've got more than 480 customers we've ever sold to, but these are the ones that keep ordering and recurring. Very active. Razor blade model, going through. Our target sectors, we love construction, engineering, and everything, we are looking at other opportunities in terms of government is a big one, but also in terms of police. If you look at law enforcement in terms of on-the-roadside testing, today, there isn't really a solution to actually test, okay, for roadside. There is a couple of places that do saliva. We're actually trialing this with a couple places. One is in the Italian police, I think. There's one in Saudi that we're testing, and there's one in Latin America we're testing as well, doing trials with the police, and one in Korea as well. The challenge for roadside testing is how long can you hold someone on the side of the road before they can go away, right? If we wanted to test the random person, say my colleague Spur here, and I say, "Spur is driving," I can't pull him aside and say, "Hey, Spur, I want you to urinate now in a cup in front of me" and wait about half an hour before I get the results. It's not practical. Even our test at 10 minutes is pushing the limit. Okay? Recently, we just announced that we're looking at ways of reducing this test down to sub five minutes. When you're getting into that couple of minutes to do the test, then it's a viable solution on roadside testing. That's a huge opportunity for us. We are looking at that. We are trialing it. That's a good opportunity for us as well. Government. Any way you can get into government in terms of military is another opportunity. We are starting to target other areas as well. Just quickly, in terms of the overall summary of this product, we do have a large population of people that are taking drugs. We've got a larger population of customers that actually want to find a better way of testing drugs. Our model is a razor-blade model. We generate approximately, we'll probably do about $4 million worth of revenue this year. What we said, it's a razor-blade model. One of these units, you're probably going to ask me how much. It's about, say, about $2,000 to go buy one of these, and then these are only $20 a test. Okay? Very cheap, very affordable for the customers. Now, for those people that want to know margins, approximately 50%, approximately 65%, that's increasing. That's getting close to now probably going to get close to 60%, maybe 70% margin, is the fact is we just moved manufacturing from the U.K., and we just moved it to a place in Asia. We reduced the manufacturing cost of this. This current product is all manufactured out of the U.K. For those that understand the U.K., it's probably not the most cheapest place to actually manufacture. That's why we're moving a lot of our manufacturing and increasing revenues. We've got so many patents protecting us. I think the last one we were awarded was in the U.S., so we're protected from both the technology from the cartridge and the actual drugs testing and also the reader itself. We've got patents protecting everywhere. Just going into just some of our financials. Strong growth, as you can see, going through. We love, well, I love, so does Spiro, but we really love quarter-on-quarter growth, year-on-year growth, but not only from a revenue standpoint, but from a margin. What we're trying to do is get both, increase our revenue, but also get margin relief in terms of productivity and scale and volume, and et cetera. You can grow revenue fast by dropping price, but we're not dropping price, and we're not going to do that aspect as well. First time we got our gross profit above 50%. Our target is 60% and beyond. We really want to get into that area as well. Just in terms of the usual stuff that people want to know, cap table, all the numbers are there. As you can see, we've got a clean cap table. It's very clean. No ratchets, no resets. It's very, very clean. It's a low shared, low stock, in terms of shares outstanding. We're undervalued. That's what I believe, but we can always debate that one. Again, just so you know, understand this, drug screening test does it within 10 minutes. Anyone that wants a drug screening test and wants to test themselves, more than happy to go. You can test it. If you don't believe it works, we do probably, last year, we did over 600,000 tests, so we know it works. If you want to see how it works, come and see us. We're on the booth, and I'll open it up for any questions. Yes, sir. Is there a software platform that goes along with it? Does the data get uploaded to cloud or any kind of additional analytics? Great question. Answer is no, no. I'll give you a couple there. This is not connected to the internet. It's not wireless. It's an old technology. We will be going to a wireless connecting and software. There's a lot of opportunities by doing that and then providing a software ecosystem for our customers. We will be looking down that pathway, but I'm not going to touch that until we get FDA clearance with it. The reason being is you open up a plethora of problems once you start going wireless and security or the data security. We were looking at that and I said, "You know what? Let's just get this approved like this." It's hard enough getting it approved with the FDA. They wanted us to do penetration and software and all this. We're not even connected to wireless, or got a system. All the results are stored on this. You can download it to a USB stick. You can print it out. It holds up to 200 tests. The customers do that and things like that. No, to your. We are looking at it. Yes. When you say 12 to 24-hour window? Yes Does that mean that somebody has consumed it's not going to be 12 hours before it detects it? If I've consumed it now, it's in my system. Okay. Up to 12 or up to 24, depending on the drug and how fast I metabolize the drug itself. Some people, so for example, it's like alcohol. Some people will drink alcohol, and within four or five hours, they're fine. Other people might take 10, 11 hours. All right. It's the same thing with drugs. Some people, drugs will stay in their system with sweat for up to 12 hours, some up to 24 hours. We detect, and one of our studies show it. Again, it's tough because there's so many different drugs, but let me just give you a range. Within half an hour to an hour, depending on the drug, once you've ingested, will start coming up positive straight away. If you're looking at the law enforcement angle, that becomes a critical factor. Remember, a lot of people turn around and say, "Oh yeah, but how accurate is it? What about this, and what about this?" We're not doing it today. No one else can do what we're doing anyway. We're coming up to a solution. Is this the most accurate drug testing device that you will ever do in the? No. The best way to do it is go to get a blood test right there and then, and get it done on an LC-MS system, and you get the best result. As a screening portable device that you can do within 10 minutes, nothing comes close to it. Nothing. A urine test, it takes longer than 10 minutes just to collect the urine sample. I'm done and dusted within 10 minutes. Got your sample and I've got your result on the screen. Yeah. When it comes to that aspect, we're the most accurate and we've got the shortest window, which means we're getting closer to the test, and we don't care if you're taking drugs long time ago. Sir? Is it a replacement for random drug testing? Yep. I mean, just so the employer just uses it and you have to almost make it optional, right? For the employees to use it. Yep. At least the employer can see who's clean. Yeah, absolutely. Look, a lot of our customers, and again, it's just for drug screening in the workplace, right? A lot of our customers use it randomly. They'll randomly go do their workforce, 10% of their workforce that month, and they'll just do it randomly. A lot of people do it, once there was an accident on site at work, they can quickly find out if that individual was under the influence, because that has bigger implications in terms of what it is. Yeah. Drug screening, it's a big thing. This is primarily targeted for workplace drug screening. There is a lot of people say, "Oh, do you do all the pre-employment drug testing?" That's not us. Pre-employment, go do another drug test that can show if this individual takes drugs. We just want to know you've turned up to work, are you under the influence? I'll give you one of the best examples is a bus driver that will take kids to school today should be drug tested. That's just me turning around and if you're taking kids. Now, if they do a drug screening test, this is what they'll do. They'll come in on a Monday morning and they'll say, "Oh, Harry, you're driving this truck. Can you do me a favor? Go do a test." I'll go, "Okay." I go do my urine test, I come back, and I go drive the bus. They've sent this urine test back to a lab. Three days later it comes back and says, "Oh, you were high on Monday." That defeated the purpose. I drove that day taking kids to school under the influence. With this, before I even start, I can turn around, before I started my shift, here I go. I do my drug screening. Within five minutes, by the time I have a cup of coffee before I start my shift, I'm cleared, go drive the truck. I'll take two more questions. Sir? What do you think about lawsuit and legal- Yep Not towards you, but in the U.S., you can sue a bus driver. This is the beautiful thing. That's not my issue. That's our customer's issue. They deal with it today anyway. They will do it with a urine test. They'll do it with a saliva test. They'll do the same thing. There is a lot of, depending on the jurisdictions and everything, in terms of can I test a person? Can I force them to be tested? Can I not, and everything? If they're allowed to, go ahead and test with ours. I'm not forcing anyone to do a test. The good thing is, if anyone does come back positive on one of our tests, then they take another sample from fingertip as well, and they send it to a lab, and that confirms it 100%, just in case they have to take any action against the individual. On that one, I know, but yeah. It should work in your favor. It should, you never know. I'll take one more question. Sir? Can you tell us where you are with the FDA? We will submit, we'll do a 510(k). We've completed most of our clinicals. Our last clinical trials we're completing this month, and we'll be submitting by September. We'll be doing the whole thing. We constantly give updates in terms of how we're progressing and what part of the clinical stages. We are doing a 510(k). We are doing a kind of off a predicate device. The problem is, I would say we're doing a De Novo in a 510(k) process because no one else does sweat. They're asking us questions that it doesn't make sense, but it is what it is. On that one, I'll do one more real quickly. Calibration, maintenance, how does that work? Unfortunately, this thing doesn't break down and there isn't a service opportunity for me, which I would love. We do calibrate these units. It has got a calibration cartridge. It does recommend after every 20 tests, it does get calibrated. There is that. The warranty on this one, like usual, it's one year. Our return rate out of field is now 3% or 4%, which is good but bad. I'd love a service business from it, but look, it's a reading device. It's like a mobile phone. It shouldn't break down. They're paying $2,000. Let it go. It's not that complex on that one. We're out on the booth. You can come and visit us. We've got some free time. If you want to be tested, come and have a test. Come and see us. Come and play with the unit itself. On that one, thank you very much for your time.