Ai-Media Technologies Limited (AIM.XA) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen. It's 10:00, so I think it's time to kick off. My job as Chairman will be tested on 2 fronts: The ability to start on time; and finish on time; and the rest of it hopefully goes well. But I'd like to welcome you to the Annual General Meeting for Ai-Media Technologies for 2025. And my name is John Martin. For those of you who don't know me, and I have the privilege of serving as the Chairman of Ai-Media. On behalf of the Board and the executive team, I'd like to extend our sincere thanks to all of the shareholders joining us in person and via the webcast. I would also like to thank our generous hosts, MA Financial, for making this very impressive venue available for our AGM and product demonstration afterwards. It's 10 a.m. We have a quorum present, and I would like to declare the meeting and poll formally open. Firstly, I'd like to acknowledge that we gather here today in the heart of Sydney. And I want to acknowledge the Gadigal people of the Eora nation, who are the Traditional Owners of the land on which we meet, and I pay my respects to elders, past and present. I'd like, before we kick off, to introduce directors and executives who are here today. And I'd just like to start with the Board. In terms of who is here in person, we have Cheryl Hayman on my far right; Brent Cubis, who's just here on my right; and of course, our CEO, who most of you will know well, Tony Abrahams; our Company Secretary, Lisa Jones, is in the front row with her hand up. Thank you, Lisa. Also joining us here in person, our CFO, Jason Singh. Jason, thank you. And our Chief Operating Officer, Donna Reed, up the back. Thanks, Donna. Bill McLaughlin, our Chief Product Officer, is attending online from New York. So Bill, we note you online. Our North American-based directors, Alison Loat; Otto Berkes; and Brad Bender are also attending online. As Otto and Brad are standing for election today for the first time, you'll see a short video address from them. The company's audit partner, Vince Snyders, and his team are also here from Deloitte, and I'd like to thank them for the work they did on the audit. So thank you very much. And they will be available to have -- meet any questions that you have about the audit that's taken place. I also welcome Glenn Rogers and his colleagues from Computershare, Ai-Media's share registry provider, who are in the room and will conduct the final voting poll. I'll now turn to the formal agenda. The purpose of today's meeting is obviously to deal with the business set out in the Notice of Annual General Meeting dated 20 August 2025. I will deliver the Chairman's report, and then our CEO, Tony Abrahams, will present a report on financial year '25 and our priorities for the coming year. We will then consider the resolutions set out in the notice of meeting. I will outline the voting arrangements ahead of that section. There will be an opportunity for shareholders to ask questions during the formal items of business as they relate to the resolution being considered. So I'll start off with my short Chairman's address. FY '25 marked a very important year of disciplined execution as we completed our final leg of our transition to a technology-led business. We delivered total revenue of $64.9 million with underlying EBITDA of $4.6 million. And more importantly, our gross margin improved to 86% -- sorry, improved to 69%. I just wish it was 86% for the whole business. Technology revenue increased by 19% year-on-year to 63% of total revenue, driven by an uptick in our high-margin technology solutions, which achieved 86% gross margin. Our business is now predominantly technology-led, reflecting our successful transition into a true technology business. Annual recurring revenue reached $17 million at 86% gross margin, reflecting the strength and scalability of our platform. Looking ahead, we are targeting 35% ARR growth in FY '26, signaling continued momentum and confidence in our strategic direction. Ai-Media evolved into a global SaaS company, originating from Australian services and U.S. hardware routes and is uniquely positioned with a live video AI infrastructure that enables some of the world's largest enterprises to seamlessly integrate AI into their workflows at scale. Operationally, we continue to streamline our legacy services footprint and focus investment on scaling our technology engine, enhancing our encoders, ICAP network, LEXI Text, newly launched LEXI Voice, our next-generation LEXI AI product currently in active development. In FY '25, we accelerated our go-to-market strategy. We expanded our presence from 13 to 36 countries. Growth was particularly strong in Europe, driven by favorable regulations such as the European Accessibility Act. Our encoded base grew from 5,094 units in FY '24 to 7,062 units in FY '25, with each encoder serving as a gateway to recurring SaaS usage. We have implemented strategic steps to improve efficiency and better align our sales teams' incentives with ARR growth. These targeted initiatives include simplifying commission structures, focusing on channel partnerships and continuing to reinvest in product and sales while reducing overhead in general and administrative areas. As we enter FY '26, we have focused on 3 clear strategic pillars: Product expansion; segment differentiation; and geographic penetration. These priorities support our medium-term aspiration to reach $150 million in revenue and $60 million in EBITDA by FY '29 with improving operating leverage. Our Board remains focused on ensuring strong oversight of strategy risk capital allocation and the latest -- and the talent required to drive execution. Over the past 12 months, as the company completed its transition to a technology-led business, we further renewed and strengthened the composition of our Board. I would like to welcome Otto Berkes and Brad Bender, who I mentioned at the start of the meeting, 2 exceptional U.S.-based technology directors who joined us in November '24. Otto is a globally respected technology leader who brings a wealth of experience in product development and innovation. He was one of the original founders of Xbox, a former CTO of both HBO and CA Technologies and held senior roles in a long career at Microsoft. Brad brings deep global product management and AI expertise following a distinguished 25-year career at Google, where he most recently served as Vice President of Product Management. Together, Otto and Brad now co-Chair our new Product and Technology Committee. This ensures that the Board remains aligned with the company's product strategy, technology road map and AI orchestration architecture. We are privileged to have very experienced directors leading our other Board committees. Brent chairs the Audit and Risk Committee, offering disciplined financial oversight of our financial management and risk framework. And Cheryl chairs the Remuneration and Noms Committee, supporting strong governance through leadership succession and long-term incentive structures. I would like to acknowledge our Toronto-based Nonexecutive Director, Alison Loat, who retires as a director today at the conclusion of this AGM. On behalf of the Board, I sincerely thank Alison for her outstanding service and commitment to Ai-Media over her last 7 years as director of the company. With the appointment of 2 new U.S.-based directors, experience and technology, Alison felt it was the right time to step back from the Board. We will miss Alison's contributions and wish her every success in the future. On behalf of the Board, I want to thank our customers, our partners and most importantly, our people across the globe for their continued commitment and resilience. I'd also like to thank our founding CEO, Tony Abrahams, his inspiring leadership, drive and commitment to the success of the business. And to you, our shareholders, thank you for your continued trust and support as Ai-Media embarks on an exciting phase of accelerated SaaS growth. Today's meeting will continue with our CEO, Tony, delivering his address, followed by the formal items of business, shareholder Q&A and some exciting, hopefully, live demonstration of our product suite. So no pressure on the team over here. So thanks again for joining us, and I'll now invite Tony to present his CEO's address.

Good morning, and thank you very much for joining us. I'm delighted to address you as Co-Founder and CEO of Ai-Media. 23 years into our journey, it feels as though we're only just beginning with a new AI technology stack, a transformed SaaS business model and a renewed world-class Board of Directors, led by John Martin, who has been steadfast in his partnership with me since joining the Board in 2010. Ai-Media was founded in Sydney in 2003 as a services business. EEG was founded in New York in 1980 as a hardware business. In May of 2021, those 2 parts converged, a pivotal turning point for our company. Today, Ai-Media is an AI-native global SaaS company orchestrating the future of live video with scalable cutting-edge technology. We have built a unique live video AI infrastructure that allows the world's largest enterprises to embed AI seamlessly into their workflows at scale. Our integrated ecosystem that you can see on the screen delivers end-to-end performance from capture through LEXI Automation, to enhanced output, including captions, translation and voice now with industry-leading speed and accuracy. LEXI Text delivers captions, as you can see, with latency as low as 3 seconds, while LEXI Voice operates at latency of just 8 seconds with European languages. FY '25, as John said, marked a decisive shift as Ai-Media became a technology-led company. Technology products accounted for 63% of revenue compared with 0 just 5 years at IPO. Tech revenue grew 19% to $41.1 million, while services revenue declined 25% to $23.7 million, a deliberate transition executed with discipline, and that will go down to 0 in December. The shift lifted gross margin, as John said, 69% on an overall basis, supported by the 86% gross margin on technology. Our annual recurring revenue reached $17 million with FY '26 projected to grow a further 35%. LEXI usage continues to scale rapidly. In FY '25, LEXI minutes reached 79.2 million, up from fewer than 10 million 4 years ago. LEXI now drives most usage across our ICAP network, compounding at a 4-year CAGR of 69%. We expect this momentum to continue. To align with our SaaS growth ambitions, for FY '26, 3 structural shifts are underway. First, we will finalize the services transition led by our Chief Operating Officer, Donna Reed. This will see a full exit from our legacy services by December this year, highlighted by the U.K. Parliament's adoption of 100% LEXI in October. This was a significant shift in the momentum for the sunset of that services business. We've now only got 2 customers left on the legacy services business, and that's Channel 9 and Channel 7, and they will be complete by December. Secondly, we have a much better commission model for sales. Directly tied to annual recurring revenue growth, we are sharpening incentives to deliver SaaS at scale. And third, we are building out our channels our indirect sales focus. Currently, only 16% of our sales come through channel partners. And over the next 5 years, we will invert this model to 85% indirect, enabling scale, lower cost and extending global reach with our 30-70 revenue split model across the globe. In terms of global expansion, our international footprint expanded to 36 countries in FY '25, up from 13 in FY '24. As John said, Europe led our growth, supported by the regulatory drivers like the European Accessibility Act with European encoder sales growing nearly fivefold in 1 year. As we build our durable moat, we see this moat across 5 interlocking pillars. First, in coders. We have 7,062 units installed which anchor workflows and serve as recurring revenue gateways when we attach LEXI SaaS to those contracts. In terms of the LEXI Suite, both LEXI Text expansion, LEXI Voice initial sales, and we will be releasing LEXI AI in April next year, all which will drive the increase in annual recurring revenue. The third element of our moat is probably the most difficult to replicate. This is workflow orchestration. Ai-Media, prior to the acquisition of EEG, developed this tool to assist when we still use respeakers to drive the AI. These integrations streamline operations, reduce manual effort and deepen stickiness while also offering our customers the opportunity to reduce headcount in other areas of their business. We are now going to charge for our professional services fees because we're getting feedback from those very large customers that they would like us to help them deliver benefits from LEXI in other areas of their business. And that is the new services line that will start from January. We expect that services line to comprise 20% of total sales at a gross margin of 50%. And I'm happy to take some questions on that because I do know there has been some uncertainty around that. As we've said, the old legacy services business will sunset. It will. It will go to 0, but we will have a new professional services business doing different elements of those services, but still, we expect that to be 20% of the total revenue pool going forward. The fourth element of the durable moat is the ICAP network. That ICAP network is the heartbeat of the LEXI system. We are now monetizing it, and we have successfully expanded that network beyond U.S. broadcast, and we see it going further still. And finally, something that we've been working on for the last 2 years is data security. Our customers are the largest B2B organizations in the world across broadcast, government and enterprise, making sure that all of their data is sovereign, compliant and protected behind firewalls is essential to signing contracts. And our SoC 2 compliance delivers trust and retention for these largest customers. In terms of encoders, they remain our entry point with each unit -- or selling for about $10,000, but representing USD 50,000 in lifetime value because of the SaaS usage that attaches to those encoders. This is the strategy for long-term growth. As John mentioned, in terms of efficiency and discipline, as we have been sunsetting that legacy services business that 5 years ago accounted for $60 million in revenue and in the last half was less than $10 million, we have been very focused on cost control. While sales and product investment increased by 24% and 15%, respectively. Our G&A expenses fell by 3%, reinforcing our focus on annual recurring revenue growth and efficiency. Now our medium-term FY '29 targets, which we first laid out to the market 18 months ago, we remain on track, $150 million in revenue and $60 million in EBITDA. To achieve that, we will expand our SaaS sales, accelerate our annual recurring revenue growth scale globally and transition our sales model to indirect sales with trusted partners in industries around the world. Our strategy is anchored in those 3 pillars that John mentioned. Product expansion, so scaling LEXI Text, adding in LEXI Voice and then LEXI AI; segment differentiation, deepening our access in government, enterprise and education; and thirdly, geographic penetration, replicating the amazing success that we've had in North America, in Europe and in Asia is the opportunity ahead. In FY '26, our Nine Squares framework for expansion directs our focus. We are focused in European broadcast, in enterprise, in particular, for LEXI Voice, and in government for North America. And I know this is the part that everyone has been waiting for. Have we got some proofs of concept on LEXI Voice, and we do. In line with our previous guidance, we anticipate meaningful revenue from LEXI Voice to flow from the second half of FY '26. We do have 5 exciting proofs of concept that we can share that demonstrate early adoption of LEXI Voice and give a clear pathway to scale. First is the Worcester Red Sox. On Korean night, real-time Korean commentary streamed directly to fans' smartphones via the stadium Wi-Fi. No new equipment, no costly interpreters, just seamless inclusivity at scale. Second case study is broadcast infrastructure. And this is PlayBox Neo. We integrated captions and multilingual voice translation into the native playout system of PlayBox ensuring compliance, reducing reliance on human capturing and expanding their audience reach. The one I'm probably most excited about is next, which is government in the U.S. This was actually a bit of a surprise. I didn't expect this one to come first. This is the city of Rialto. And for those of you who don't know, there are about 45,000 municipalities in the United States. This is the first. And the good news is it came through a channel partner who has connections with many of the others. We are delivering live English-into-Spanish voice translation and captions using our encoders, LEXI Text, LEXI Translate and LEXI Voice. While this delivers lower cost, ensures compliance and validates our municipal segment and secures our first LEXI Voice-contracted revenue in the government sector. And I actually have a direct quote from the customer that I can read that came in just this morning. This is from the customer at the City of Rialto in California. We intend to use LEXI Voice as a way to automate translation for a dedicated all-Spanish live stream. At my previous employer, we hired a firm of interpreters that would staff each and every meeting. That old personnel-heavy method has many drawbacks. Number one, price. It is expensive. Not to mention, they require 2 interpreters at once to switch out on a constant basis, so double the cost. Two, you need a place to put these 2 interpreters. We would routinely get complaints from the city council that they can hear the interpreters. Three, several times, the vendor screwed up or the interpreters just failed to show up, meaning no Spanish language stream. Number four, it required a lot of tech, additional mics, mixers, audio interfaces and cabling, et cetera, et cetera. Five, it required the interpreters to be sort of tech savvy to mute and unmute bit by bit. It wasn't seamless. All these reasons we elected to go with your LEXI Voice automated solution. So we will simply take our program feed, send it to the LEXI encoder, take the translated version out to a streaming encoder and done. Cannot get any easier than that. We're also going to take the audio and feed it into an assisted listening system so folks can listen in Spanish while attending the meeting in person. We don't plan on doing this, but I even floated the idea of feeding that translated audio into Zoom when they brought up a remote Spanish public comment which we did do at my previous job at the City of Riverside with live translators. So I think that gives you a sense of the scale of the opportunity here. And then looking forward, I'm going to Switzerland on next Tuesday, and I'll be there for most of October, and we are going to look at how we can deploy LEXI Voice in the multilingual environment in Geneva to reduce interpretation costs by 80%, increase the quality of service because the other thing about human interpreters is there is no quality control. Who knows whether they said the right thing at the right time, whereas we have got the text and the translated text, which you can see there on the screen. And then that will go through to the voice. So there is a full audit trail as well of the accuracy of everything that we do. And part of what Donna, as Chief Operating Officer, does is make sure that we have all of the data on the accuracy of all of our products and of course, the latency. We do everything live, and so it needs to come faster and faster. And then the last proof of concept is a global sports broadcaster, who we're working with at the moment, a very long-standing EEG customer who has now expanded to live, multilingual translation across tournaments. We are integrating LEXI Voice into their existing Ai-Media infrastructure. And the solution is scaling seamlessly. This is about increasing the return on investment for them, and it has reinforced Ai-Media as their trusted innovation partner. Together, these 5 early case studies show LEXI Voice as the key product transforming accessibility, reducing cost and creating scalable value for customers across industries way beyond captioning. In terms of our competitive position, we are leading. Ai-Media orchestrates the best-in-class AI technologies like Google, XL8, ElevenLabs, DeepL, ChatGPT and dozens more into secure enterprise-grade workflows where we can easily swap in and swap out different APIs depending on the performance that we get from our LEXI Lab, which is a key part of our Chief Product Officer, Bill McLaughlin, remit to ensure that we know what's the right horse for the course. So if we're translating from Mandarin into English, it might be a different engine than if we're going from English into Spanish, all of that needs to be done seamlessly at the back end. So to summarize, FY '25 delivered. We established ourselves as a SaaS business, uniquely positioned in AI for live video. $17 million in ARR at 86% gross margin with a 35% forecast growth in FY '26. We expanded into 23 new countries, and we have an expanding moat across encoders, security, workflows, networks and our expanding LEXI Suite. Importantly, as John said, we have a company-wide incentive structure now, which rewards and aligns growth to that of shareholders. And we are in the middle of a decisive shift to an indirect sales channel pathway, which will give us global leverage. On behalf of the Board and the executive team, I thank all our people, customers, partners and shareholders for your continued belief in our vision, particularly as we've gone through a transformation over the last 5 years. Together, we are successfully building sustainable leadership in AI-powered live video for secure, enterprise-grade applications worldwide. Thank you. I'll now hand back to John.

Thanks, Tony. I think I'd like to just move to really questions and comments from shareholders who hold a blue card or a yellow card in relation to anything that I said in my report and the CEO's report, Tony's report. So this is -- if you want to ask a question, it'd be great if you could state your name and whether you are a shareholder in your own right or you're attending as a proxy or attorney for another shareholder. So I open that up to anyone who'd like to ask some questions at this stage. We haven't entered into the formal part of the meeting yet. This is just really a commentary on what you've heard today.

My name is Jack Cole, I'm a shareholder. This one is for Tony. I'd like to just understand, you touched on your competitors there for a moment. Can you just maybe outline who you see as your key competitor and who you might be trying to replicate in some aspects or might be doing something better than you guys are currently?

Testing, testing. These guys -- so it's the hyperscalers. So everything that you see in LEXI Voice, these guys will develop themselves and will deliver themselves. Now the way I look at this is if you are getting live translation natively through Microsoft Teams, which was launched 3 weeks ago, so you can get effectively this service within Microsoft Teams. You can also get this LEXI Voice service through the new Apple AirPods. And you can also get it through Google Meet, and then Amazon's got a product for it as well, right? So we look at this and go, well, is that a competitor? Well, it is, right? Because they're offering that same service, and you could get live translation via the -- via Teams or you can get it via your AirPods. We are looking at doing that in a different environment. So the environment that we're looking at doing it in is an environment like this room. You can't use Microsoft Teams in this room. Also, when you're talking about AirPods -- and in fact, all of these settings here, it's a direct-to-consumer model. So the AirPod translation, so you're on a call. Let's say you buy the new AirPods and you're on a call and someone's speaking French, you can get it translated into English via your AirPods, but that's being done for you personally. We do it at source where we're plugged in right next to the broadcast stream, and then we broadcast with quality control, the actual translation to everyone. So no one needs to do any translation on their personal devices. And this takes all of the benefit of the isolated audio that we get through the encoder network, which we've built through LEXI Text. And what's important to note about LEXI Voice is that LEXI Voice is actually -- the first component of LEXI Voice is actually LEXI Text. So the fact that we've got the noise canceling -- effectively got the noise canceling inputs into the system, the fact that we are orchestrating that with topic models second by second so that it gets the level of accuracy and it understands the context based on data that is pre orchestrated and automated is not something that these guys do. So you then say, well, who actually does some of the automation. So then you move to this side of the graph, right? And so our traditional competitor in the -- these are our traditional competitors in the services space. So for example, we have -- Ai-Media's had the contracts with Channel 9, Channel 7 and Foxtel in this country. Red Bee has had the contracts with Channel 10 and ABC and SBS. And so they have been a traditional competitor of ours in this space. But as less and less is being done with humans, they're becoming less and less of a threat to us. And in fact, in the U.S. where everything is now on the ICAP network, they're customers of ours because they're now paying $2 an hour to access the ICAP network, which generates $1.5 million in revenue a year for us up from 0 when we acquired the business. And that was a change that we made 18 months ago. Our largest competitor in the U.S. is ENCO, and they produce encoders. Now they're -- they've got about 20% of the market. We have 80% of the market. They're the Jetstar. Now what's also interesting is that the city of Rialto, who I read you the quote on, pulled out their ENCO box. They had an ENCO box, and they pulled that out and replaced it with our encoder because obviously, ENCO is not going to give them live voice. So they just do captions. Same with voice interaction. So voice interaction, again, are on the lower end of this. We have not yet seen anyone who does the workflow orchestration live. And that's something that we believe is the critical component. And that's something, as I said, that Ai-Media built pre-acquisition of EEG. From 2010 until 2021, we invested $40 million in R&D. A large part of that went on that workflow orchestration. So it slots right in with the technology through the encoder.

Thanks for that question. Any follow-up from that? Are there shareholders who'd like to ask a question? You might have talked everyone out, Tony, after the results session.

All right. Well, if I don't see any more movement, I'll move on. So thank you. We'll now go down to the conduct of the meeting. And as set out in the notice of meeting explanatory statement, there are 7 items of business today, which are displayed on the screens behind me. And we're up to the first item. And before I get into the formal voting on this business, maybe I could just remind everyone about the voting arrangements today. Upon registering for the meeting this morning, you will have received either a blue-, yellow- or white-colored card. Those who received a blue or yellow admission card may speak and ask questions. The persons entitled to vote are all shareholders, representatives and attorneys of shareholders and proxy holders who hold blue voting admission cards, which will also be used as poll voting cards. If you are attending in more than one of those capacities, you will have been issued with as many blue voting admission cards as you have separate capacities. If anyone believes they are entitled to vote in any capacity and does not have a blue voting admission card, please raise your hand now and a team member from Computershare will assist you. No? Okay. Great. If you are a proxy holder, a summary of the votes to which you are entitled has been attached to the blue voting admission voting card. White cards have been assigned to visitors other than shareholders and do not carry rights to speak and ask questions when the business of the meeting is being conducted nor the right to vote. Yellow cards indicate you have voted already, but you can ask questions. If you have a question, please hold up your blue or yellow admission card and state your name prior to the question being asked. Please direct any questions you may have to me as the Chair. I will either deal with the question personally or ask someone who is better placed to respond. We will do our best to answer all relevant questions raised. We've got a very well-educated audience today. As Chairman of the meeting, it is my intention to cast any undirected proxy votes in favor of all resolutions. I will declare the proxies held by me at the start of each resolution by showing them on the screen. As you will see from the notice of meeting, the board recommended voting by direct vote for all resolutions. Direct voting enables shareholders to vote without attending the meeting or appointing a proxy. Voting on all items of business will be conducted by a poll. The vote by poll will be conducted by Computershare, and the poll is open for each of the resolutions in the notice of meeting. Glenn Rogers of Computershare, who's here in the room at the back there -- Glenn, thank you -- will conduct the poll as a returning officer. Your voting cards will be collected by Glenn before the poll is closed. If you need to leave early, please complete your voting card and present it to him. As Chairman of the meeting, I will ensure that there are opportunities for separate deliberations concerning the items of business at today's meeting. Discussion will be invited on each of the items. Please hold questions on executive rem until we get to the remuneration report resolution. I encourage debate in the airing of all issues. It is important, however, that comments and questions are succinct and restricted to the subject matter of the business and resolutions set out in the notice of meeting. Details of proxy and direct votes for each resolution will be shown on the screens at the conclusion of the discussion. So this is the start of the formal bit unless anyone stops me and ask a question. A copy of the notice of meeting and explanatory statement containing the resolutions to be considered were provided to shareholders on 26 August '25, and I will take the notice of meeting as read. I will now move to the formal agenda. Item 1, financial statements and reports. The first item of business is to receive and consider the annual financial report of the company for the financial year ended 30 June '25, together with the declaration of the directors, the directors' report, the remuneration report and the auditor's report. The reports are contained in the annual report, which was released to the market on 28 August 2025. I hope you had a chance to look at that. I will take the reports as read and now formally lay them before the meeting. Shareholders were invited to submit questions in advance of today's meeting to our auditor on the conduct of the audit, the preparation and content of the auditor's report, the accounting policies adopted by the company relating to preparation of the financial statements and the independence of the auditor in conducting the audit. Are there any questions on the annual report or audit opinion for either the auditor or the Board at this stage? Okay. There is no requirement for a vote on item 1, so I will now move to the items of business which require a formal resolution. Resolution 1 is the adoption of the remuneration report. The remuneration report -- sorry. Resolution 1 is an advisory nonbinding resolution required by the Corporations Act in relation to the adoption of the rem report, which forms part of the company's annual report. The remuneration report is set out on Pages 21 to 26 of the annual report and provides information concerning executive and director remuneration. The resolution is displayed on the screens. I will now be happy to answer any questions or receive any comments you may have on Ai-Media's remuneration report. Okay. If there are no questions, I will be -- details of the direct and proxy votes that have been received are displayed on the screens. I will now move on to Resolution 2, which is the election of Otto Berkes as a director. There's the resolution. Resolution 2 concerns the election of Otto Berkes. Otto's credentials have been outlined in the explanatory statement attached to the notice of meeting and are outlined in the annual report. Otto is currently in New York and has sent a short prerecorded video, which we will show now. [Presentation]

My name is Otto Berkes, and I'm happy to have the opportunity to introduce myself today. I started my career in technology at the very beginning of the personal computing revolution. My interest in computer graphics eventually led me to join Microsoft in 1991, just as Windows and graphical user interfaces were starting to take off. As the head of Windows graphics technology, my team and I led the effort partnering with NVIDIA and others to build and enable the first modern GPUs, the same architecture that is driving today's AI revolution. That work also paved the way for my co-founders and me to create Xbox. After an almost 20-year journey of incredible advances, the evolutionary arc of PC and game console graphics felt complete. I then joined HBO to help the company get out in front of the transformational shift to streaming video, and as HBO's Chief Technology Officer, built one of the largest streaming services in North America. And then as CTO at CA Technologies, a multibillion dollar enterprise software company, I led product innovation to help the company navigate the rapidly shifting needs of our customers. I have also had the opportunity to serve in a number of Board roles over the past 20 years, including private, public and nonprofit organizations. I currently serve on the Board of Integral Ad Science, a leading ad tech platform. The company is listed on the NASDAQ under the symbol IAS. I'm also on the Board of Intelligere, a privately held AI-based contract management software company. And I am the incoming Chair of the University of Vermont's Graduate College Advisory Board. Since joining Ai-Media's Board, I have also been co-Chairing the recently formed Product and Technology Committee. I was happy to accept the co-Chair role because it aligns so well with my experience guiding product and technology evolution. Although I am a technologist by training, my many experiences building products have taught me the importance of balancing market demand, customer needs and economics along with technological innovation and moving quickly at the right time. LEXI Voice is a great example. A few short years ago, a voice translation product for the broadcast industry simply wasn't feasible. But when the technology barriers finally came down, Ai-Media responded and rapidly developed LEXI Voice and brought it to the market. New products are always exciting, but I'm just as excited about the opportunities for Ai-Media to grow its business through regional expansion and new market segments. Sometimes the best growth opportunities are with what you already have. Finally, my Board work has shown me firsthand the importance and value of engaged, high-functioning Boards and their impact and importance in providing effective governance and strategic guidance. The outside perspectives that a diverse Board provides are crucial to driving robust decision-making and keeping the focus on the right things. And on that note, it's my privilege to stand for election as a Nonexecutive Director for Ai-Media. Thank you.

Okay. Thank you very much. Otto is actually on the call. So thanks, Otto, for that video that you made. It was very helpful. Is there anyone who would like to ask a question or express a view on this item? If not, the details of the direct and proxy votes that have been received are displayed on the screen. We're going to do a short inquiry into the people who voted no on this one. I now move on to Resolution 3. Resolution 3 concerns the election of Mr. Brad Bender. Brad's credentials have been outlined in the explanatory statement attached to the notice of meeting. Brad is currently in California and has also sent a short prerecorded video, which we will now show. [Presentation]

My name is Brad Bender, and I'm happy to be able to introduce myself today, and I'm honored to stand for formal election as a Nonexecutive Director of Ai-Media. I bring over 25 years of global product and management experience at Google and DoubleClick. At Google, I most recently served as Vice President of Product Management for Google News and Search ecosystems, leading AI-driven initiatives that reach billions of people worldwide. Before that, I founded and scaled the Google Display Network into a multibillion-dollar business and led Google's display and video advertising products. Before Google, I was Vice President of Product Management at DoubleClick across the U.S. and internationally. Today, I serve as an adviser, investor and independent director across public companies, startups and nonprofits. I'm proud to have had the opportunity to serve on a number of Boards. And for over 15 years, I've served on the Boards of public, private and nonprofit organizations. I currently sit on the board of Entravision, a global media, marketing and technology company. It's listed on the New York Stock Exchange under the symbol EDC. There, I serve on the Compensation Committee and supported a CEO transition as well as helped strengthen the company's technology strategy. Since joining the Ai-Media Board last November, I have co-Chaired the Product and Technology Committee with a focus on pragmatic governance and hands-on support in product and go-to-market excellence. I was happy to accept this role to help the company accelerate product development discipline and sharpen its ability to bring those innovations successfully to market. That's why I'm especially excited about Ai-Media's SaaS transformation and the opportunity to hyperscale our LEXI Text and LEXI Voice products. These products already prove their value every day in broadcast, enterprise and government markets. The opportunity now is to take that foundation and scale it globally across new geographies, verticals and customer segments, unlocking growth that could be both rapid and durable. This is where my background scaling Google's products worldwide is directly relevant. Building product market fit is just the first step. Creating the right go-to-market motion, pricing and customer success structures is what turned strong products into billion-dollar businesses. That's the journey I see Ai-Media on now with LEXI Text and LEXI Voice. Ai-Media's mission to make content accessible to everyone deeply resonates with me. I look forward to continuing to help the company execute its SaaS strategy deliver innovations globally and create real impact at scale. Thank you for your support.

Okay. Once again, would anyone like to ask a question or express a view on this item? If not, let's move to the proxy and direct votes which are on the screen. I now move on to resolution 4, which is the reelection of Cheryl Hayman as a director. So just for those of you who are not aware that, in fact, Brad and Otto were appointed in November '24, which meant that under the rules, they necessarily have to come up for election at the first opportunity, which is this meeting. So that's their first election as directors after their appointment. This resolution is for the reelection of Cheryl as a director. Cheryl's credentials have been outlined in the explanatory statement attached to the notice of meeting and are detailed in the annual report. Cheryl, is there anything you wish to say at this stage? Or do you want your record to speak for itself?

Well, first of all, I'll tell you this is why technology is better than humans in introducing themselves. It's been a privilege to serve on this Board since 2022. I've seen enormous change, some of which obviously Tony outlined in his extensive background goes way back further than me. I've got nearly 2 decades now scarily as a Board director across also listed, unlisted private, not-for-profit organizations, very diverse sectors, geographies and channels. So kind of wide and shallow, I guess, you would say. My background was in consumer marketing. So customers are at my heart as is inclusion, which is what drove me to Ai-Media back in the initial instance. So I'm all about customer centricity, growth and innovation, stakeholder engagement, people leadership and, I guess, contemporary Board issues and challenges. So this business is a brilliant business to be on the Board of. I think I've worked really well with Tony and Donna and the rest of the team in undermining -- underpinning -- undermining the past.

Not undermining.

People issue -- underpinning where we sit now with our remuneration strategies. It's all about people. And Tony and I speak a lot about this, but Tony has a strong radar when it comes to ensuring everybody in the organization is appropriately rewarded on the journey, which I find extremely refreshing. Some of my proudest achievements are sitting on the Board today, the appointment of Brent Cubis is our Chair of ARC and Nonexecutive Director; plus the process we ran in the U.S., which ended up with 2 extraordinary directors in the U.S., which I think makes this a really effective Board and actually a joy to be part of, if you're allowed to say that. I'd be honored to share this journey with you, and I thank you in advance for your support.

Thank you, Cheryl. Would anyone like to ask a question or express a view on this item? If not, we'll go to the proxy and direct votes that we've received. So I can now move on to resolution 5. Resolution 5 is the appointment of Grant Thornton as auditor. Resolution 5 seeks approval for the appointment of Grant Thornton Audit Pty. Ltd. as the company's auditor following a competitive tender process overseen by our Audit and Risk Committee. I would like to acknowledge Deloitte, who have been our auditors for many years, to thank them for their professionalism and dedication during that time. They're exceptional as auditors. Further details are set out in the explanatory statement attached to the notice of meeting as we have now received ASIC's consent to the resignation of Deloitte and the appointment of Grant Thornton will take effect at the conclusion of this meeting if the resolution is passed. Would anyone like to ask a question or express a view on this item? No? Okay. Well, then details of the votes, the direct and proxy votes are up on the screen. So I think the last resolution is the grant of restricted share units to Anthony Abrahams. Resolution 6 seeks approval for the grant of up to 700,000 restricted share units to our Managing Director and CEO, Anthony Abrahams, under our new long-term incentive plan. The introduction of the plan, which forms part of our 5-year strategic growth plan and aligns executive rem and shareholder interest through long-term equity participation was announced to the market on 8 May 2025. Given Tony as a director, shareholder approval is required for his grant of RSUs under the plan. Further details are set out in the explanatory statement attached to the notice of meeting. Would anyone like to ask a question or express a view on this item? If not, the details of the direct and proxy votes have been received and displayed on the screen. And now our shareholders, proxy holders and corporate representatives holding blue voting cards to complete the card if you have not already done so to finalize your poll votes as the poll will be closing shortly. With Glenn Rogers of Computershare, please come forward to collect the voting cards. Please put your voting card in the ballot box as this is brought around. If you do not have a pen or pencil, raise your hand and a staff member will pass you one. [Voting]

Yes, I got it. Sorry, I've just got to mark mine as the Chair. We'll just give a little more time for everyone to put their cards in. All right. It looks as though everyone's all done. Thank you very much, Glenn. So I think we're coming to the conclusion of the meeting. I now declare -- unless there's anything else, I now declare the meeting and the poll closed at 10:58. I think that's a win. So well done, everyone, for getting through that order business. Computershare will now count the votes, and the results will be available on the ASX platform later today. As you can see from the direct and proxy votes received, the resolutions are expected to pass by the required majorities. Do I have any further questions from the floor at this stage? Yes?

[indiscernible]

Yes. I think at this stage, any question in relation to the meeting and the resolutions.

My name is David, I'm a shareholder.

How are you, David? Thanks for attending today.

Just on -- I'm a shareholder, quite a few shares. But now we're in the meeting and you commented on shareholders and where they stand in benefits for the company. Now I know going back a bit, I think in the prospectus, you commented there was to be no dividends at this point in time. I personally am in favor of dividends when you got the money and the profit to justify them and that you just pay them really early. But I think the shareholders' entitled I think that his contribution, which isn't anything more than supporting the company's finances, what we recognize. And I'm really happy to hear you say what your intentions are for shareholders. I'm not saying to do something right now. It may not be the right time. But with small companies, there is necessarily, I suppose, the lack of constant information. And BHP has got something to say every day, you haven't. And I think also, when you have a look at the way the share price has reacted this year, there was obviously a gap between what people knew and what people have to wait for the annual meeting and not much in between. And I might add in that score, I now speak to you on this, that whoever is doing our shareholder answering the questions and so forth, to be fair, I didn't find very satisfactory at all, at all, at all 100 year down. So I'd like to think [indiscernible]. But back to the dividend, I just think as a shareholder, you'd like to think, well, I'd like to see the company grow. That's the main thing. But it's nice to know that there's a name there that gives a direct benefit to shareholders. So whether it's a big dividend or small -- and it sets a goal for the Board to say all these people here have put their money in. Otherwise, you wouldn't be listed. I mean I'd ask you the question if you don't agree with it. Why did you list? Now small companies are getting bigger all the time. So there's a lot of changes in the structure, but I still think that if you're making the profit and the profit is the shareholders' anyway, a small contribution to them would be, a, good and; b, a good guide as little as you can give a guide without having inside information and that sort of stuff available. So I strongly urge that you look at that. And whatever your policy is on this, I'd refer you to -- I'd like you to say it because otherwise -- and it's true -- you didn't mention the shareholders once in this meeting, except to thank them for something that they did. And I think it's worth doing. Other than that -- and it comes up also -- I didn't raise at when talking about Tony's remuneration. I don't think it's strictly the same thing. But everybody else gets a pay rise somewhere along the way. And I think the people who put the money in don't. [indiscernible]?

Thanks, David. That's very helpful that feedback. The only thing I'd say about where the company is in terms of its journey over the last 12 months to 24 months, we've now started to see the fruits of our strategy paying off in terms of being cash flow positive. While we may have what I describe as a healthy bank balance, I think that -- and we don't have a formal policy, let me just say that upfront. But I don't think we're at the stage of our evolution is merging to a technology-led business that it's a no-brainer for us to move into a dividend-paying phase. I think investors are seeing the #1 thing they want from us is to hit our marks when we're going for those 5-year targets on $150 million in revenue and $60 million in EBITDA. That is where the shareholders will get their greatest reward from in terms of us being able to absolutely hit our marks as we go forward because that really is what I would describe as the most obvious reward for all shareholders. I think if we're in a position where we're spending off so much cash that a dividend becomes a natural part of the thinking of the Board, well, I guess, as the directors will be very clear about that, that they would support it. There is no -- there is nothing in the Board that says we don't like paying dividends. I think that when we look at the rewards for shareholders going forward, though, we see the reward side of the equation really about the company's technology-led agenda driving the success of the growth of the price of shares being the, what I would describe as the best return for investors over a dividend-paying policy. Look, I don't want to drag this out too much, but look, I think your conversation is a good one. I would love to be in a position where I can say to you, David, in the future, we're just spinning off so much cash, David, a dividend for all shareholders is an obvious thing to do at this stage of our growth. I think there's also a bit of a message. There are a lot of market participants in this room. And one of the things that a young technology company like us who's made the transition from services to tech, we're looking to shift which category of the ASX we're in from services to technology. So we're a young technology company in that sense. It's unusual for a young technology company, at the earliest stage of its life, to start paying dividends. I think the market would see that as maybe putting up a hand a bit early to say, I'm not sure we know what we're going to do with our capital. And I think we're pretty clear as to how we're going to grow this business, and we will need capital to do that, not capital that we need to raise, but capital that we have today because we want to match spending our money with generating what I would describe as healthy earnings, which are going to support our growth as well. So I think that's hopefully a bit of an answer to your question of, call it, the dividend, why don't we get a dividend now. But we'll certainly take this back as a group of directors, and we'll talk about it privately, David. So thanks for raising it. Anything else? A little bit easier than that one, maybe. If not, I will call this meeting to a close, and we're now moving on to the fun bit, which is where we get some demonstration of technology and Tony, and things will range a little more freely than hearing me go through a formal setting. So thanks very much for your participation and patience doing the formal part of this business. And I'd also like to, on behalf of the Board, congratulate the 3 new directors being reelected. So well done, Otto, Brad and Cheryl.

Thank you very much, John. And for those who are online, we will -- this is an interactive demonstration of LEXI Voice. We will go through 3 distinct iterations of LEXI Voice. For those online, it will take about 5 minutes to 10 minutes, and then we will cease the webcast. And then for those who are in the room, we will have a short break and there's some refreshments. And then we will have the opportunity at these stations here for everyone to experience with the headphones, any different language combination that you want. And then up the back here, we have our very exciting LEXI Audio Description product, which is using all-native AI to describe what that labrador is doing on the screen. And this is a brand-new product that we launched just at IBC last week, and it is for blind and low-vision people. And so for blind and low-vision people access to television requires a description of what is actually going on in the visual elements when you can't actually hear -- when there's no noise. So you can see the labrador jumps out of the car, for example, and that's described on that video. So you can go and experience that as well. But for now, what we will do is we will do 3 different iterations of LEXI Voice. The first one will be me right now into Spanish. You'll start to hear this coming live. This is the 8-second delay of me speaking Spanish. And the way that this works is, as I said, LEXI Text first speaking. You can see it coming up in English. Then you can see the translated text into Spanish. And then it's that translated Spanish text that you're now hearing in the room. Now obviously, it doesn't really work in the room hearing me in English and hearing this in Spanish so this is just a bit of a demo so you can get a sense of it, okay? Normally, you would be doing it in headsets or you're doing it through an app with your AirPods or whatever you're listening into, and that's what we did in that Korea slide. [Foreign Language] I sound so good in Spanish, don't I? At some point, I thought I should learn Spanish, and now I don't think I need to. Now one of the things that you'll see and as Otto and Brad mentioned, the technical elements of the underpinnings of this solution have only recently become commercial grade. And so what we're actually going to show you today is actually where the cutting edge is in terms of what we're continuing to develop. So this solution from English into Spanish last year took 30 seconds in terms of delay. Now we're at somewhere -- we're around 8 seconds. So we're a little bit longer in here because we're not directly plugged into a device, but it's about 12 seconds. I think you heard it there. What we're going to demonstrate now is some of the more complex languages and how that works. And the way we're going to demonstrate that is we're going to go from Mandarin into English, and then we're going to go from Hindi into English. And we're not going to do it live. We're going to do it just so we're speaking it in, and then you can hear the translation come up straightaway. And think about it in terms of that city of Rialto use case. The only way of doing this in the past was having 2 interpreters sit in the room. So I'm going to invite Cindy, who works with us in marketing. And Cindy is going to demonstrate first our Mandarin. Thank you, Cindy.

[Presentation] [Foreign Language] to promote our cornerstone voice translation technology, hoping to bring it to more people. At these events, we allow visitors to wear headphones and hear the machine translate their own language. For example, our last exhibition in South Korea received a lot of praise, and they were very excited to hear their language through the headphones. We hope to bring this technology to more people. Thank you.

Thank you, Cindy. So now we're going to -- so again, right, this is at the cutting edge. So we can't yet do that live, but this will be in 6, 12 months will be exactly where we are with Spanish with the Asian languages. And now Jason is going to give us some Hindi.

[Presentation] I see some people actually speaking in the audience. [Foreign Language] LEXI Voice listens, translates and instantly provides captions and voiceovers in multiple languages. Experience it all together at live events around the world. [Foreign Language] You'll also get to check out LEXI Text, the world's most accurate subtitle provider. It delivers subtitles instantly with over 99% accuracy trusted by broadcasters. We've just made LEXI Text smart and capable. Whether you need subtitles in the cloud promise or a high-end IP workflow, LEXI Text ensures your video is always accessible. And finally, [Foreign Language] LEXI Text is worth a look. LEXI ID is our proprietary audio description tool. It makes video descriptions easy by finding and inserting narration into videos without any non-dialog. The result is a complete audio track that seamlessly integrates with the rest of the workflow. LEXI ID is fast and inexpensive enough to be applied to your entire video. Compliance becomes a breeze with LEXI ID, and your video content is clean for all. Thank you.

Thank you. Thank you. Thank you. So you've seen now a demonstration of how LEXI Live is working really well into European languages. And you've also got a sense of some of the tech barriers that we're working on to integrate that with the Asian languages. And so you can see that the translation is really good. The voice is really good, but the latency is still too long for something that you would want to do in terms of live. And that's where we spend our R&D effort. It's all about getting that latency down, getting the improvement in the quality and making sure that, that voice sounds as normal as possible. So this is where we will leave the webcast. I thank everyone who is online at the moment for having stayed and joined in. And hopefully, you've got a sense of LEXI Voice. And for those in the room, we'll take a short break, and then we'll reconfigure the room in terms of those stations where you can go and view things in terms of the demo. We've got a couple of different videos up there at the back for audio description. That is a fully automated service. That used to take 29 human hours to do 2 years ago, and it is now a button push. It is absolutely revolutionary. And in IBC in Amsterdam, that product got a lot of attention, and we were very, very happy for that. That's a recorded media solution, by the way. So this is both -- legacy voice is both live and recorded. That is a recorded solution at the back. So with that, I thank everyone online, and thank you, everyone, for coming and John and all of the Board. And please, thank you all for your support, and we look forward to continuing the journey to achieve those targets for FY '29 18 months into the 5-year plan. Thanks very much.