CONNEQT Health Limited (CQT) Earnings Call Transcript & Summary

Okay. It's just past 11:00 a.m. here in Sydney, so we'll make a start. Welcome, everyone, and thank you for joining today's webinar for an update on CardieX' business and operating activities. My name is Rod Hinchcliffe from M&C Partners, and I'll be moderating the call today. With me on the call is CardieX' Executive Chairman, Niall Cairns; Chief Executive Officer, Craig Cooper; and Chief Strategy Officer, Catherine Liao. The format for today, Craig and Catherine will go through a company presentation, which will be followed by a question-and-answer session. A number of questions have been submitted. [Operator Instructions] And just a reminder that today's webinar is being recorded. With that, I'll pass it over to you, Craig.

Thanks, Rod, and good morning, everybody from California. So here's what we want to cover today. Firstly, we'll get a brief overview of the capital raise that we're currently in the process of -- by Niall. I'll give a short recap of the investment thesis and fundamentally, why we're all here and on the call and why from our side and from your perspective, while we continue to support and invest in the company. We'll then talk about ATCOR, the business, the clinical trials business, our clinician business, our research market business and update you on where we are with that. We'll then shift to CONNEQT, how we're looking at our go-to-market strategy, how we're driving sales and conversions. Catherine will then share some consumer sales metrics and some examples of early adoption that we're seeing with the post in research markets, some exciting developments there. We're happy to share for the first time. We'll then also share publicly for the first time how we're looking at pricing going forward as we move towards migrating CONNEQT initially, but then as we move through the year, the ATCOR device portfolio as well on to a more licensing, subscription and membership-based model. And as part of that, we'll showcase version 2 of the CONNEQT App, which we're super excited about internally in terms of the opportunity, not just from the perspective of rounding out the ecosystem of the business, but also from the perspective of an independent opportunity to monetize that app separately from everything we're doing from a device perspective. So we'll finish by tying all this together in terms of where we're heading with the business, how we're looking at our full device ecosystem as we move forward as we look towards a more software-centric business with licensing, subscription and membership based revenue. So a lot to share. And throughout this, we'll try, as Rod mentioned, to cover some of the questions that we received online. And if we miss anything, we'll try and answer those towards the end or at the end of the presentation, I should say. Okay, a lot to cover. I'm going to pass it over to Niall for a quick overview of the current capital raise. Niall, over to you.

Thanks very much, Craig. Good morning, everyone. Thank you. So as you know, we're underway with a $6.5 million capital raising, which is in 2 parts. There's the placement, which has already been completed, raising out actually $2.4 million; and then a 1 for 4 pro rata nonrenounceable entitlement offer to raise $4.1 million. All of $0.04 a share. The entitlement offer closes on the 20th of June. The only other thing to mention is that the -- we will be holding an EGM, hopefully, in July, and that will be doing 2 things. It will be seeking approval from shareholders for C2 Ventures and directors' participation in this June placement, but also for the December placement that we committed to back there. We currently hold in C2 Ventures 30%, Craig and myself and C2 Ventures with our associates hold 36%. We are looking as part of this whole process to at least maintain that level. Next slide, please. So at the end of this capital raising, we should end up with just over 568 million shares, and at $0.04, that's a market cap of $22.7 million. Separate to that, obviously, are the listed options that are still in place. They expire in well, at the end of October this year, and then a small number of employee options and performance right. So at the end of the day, we should have 568 million shares on issue. Back to you, Craig.

All right. Thanks, Niall. I think I just want to jump in before we move forward because we did get a question about as you know, Niall, sort of alignment of CTV with other shareholders, given our holding, given it was an ironic concern, it was mostly founded and given the amount of capital that we had actually put in. So it's probably a good time to address that now before we move on because, look, I think as Niall outlined and particularly given the fact that we are, again, putting more cash into the company. I don't know how we could be any more aligned with smaller shareholders. I mean we sit side-by-side with all of you. We have more to gain than to lose than anyone. As I mentioned, we've led every single round since 2017 when we really picked the company up and created a vision and strategy for the business going forward. So look, we just get -- I just want to be very clear, we don't get any special treatment. We make money when everyone else makes money. We don't have any special liquidation sale or other preferences on our stock. There's no change of hands, stock ramps or bonuses. We have common stock and options just like everyone else. So the small amount of performance shares that we have, they trigger at levels that really everyone should be celebrating if we meet those milestones. So trust me, no one is more manically obsessed with making this successful than us and everyone in the team that's supporting us. So we hope that's clear. We hope it's appreciated. We obviously continue to support the company. We're more than happy to do it. This is our passion, our lifeblood is where we believe we're going to make an impact. And really from day 1 when we talk about the investment thesis for us being in the business, it really hasn't changed. I mean the vision that we had from day 1 in terms of recognizing the value of the technology, the market opportunity that we had in front of us, the uniqueness of the category that we had and the opportunity that was really at that time, very nascent, but was escalating in terms of the sector around longevity and the sort of categories that were being created in all these other medical and broad sort of longevity wellness markets, which I think as we sit here today is probably the biggest opportunity for us, which I'll talk about a little bit more in a moment. But then underpinning that, good tailwinds from the perspective of the CONNEQT business from the perspective of revenues, headwinds in the last year from the ATCOR business, which we'll talk about, which we see easing. So all in all, as we move through this year and into next year, the momentum we have, we're super excited about in terms of how we're executing and everything that we've got going on. So just when I talk about category creation, and I do it a lot with the team because it really underpins the vision that we have for the company because when we look at particularly the market that we are in here in the U.S. from the perspective of who we're comping ourselves against, I mean, many of these companies might not be household names in Australia. But these are multibillion unicorns, which are really -- some of them, in the case of levels health, levels health have only really appeared in the last 18 months. So when you look at the ones that we sort of comp against and the ones that are more prominent, levels, function, health, which is a health biomarker company, work from the perspective of performance sports or from the perspective of sleep, I mean then probably the grandfather of them all, which is Masimo, which is the original developer of pulse oximetry. These are the companies that we are comping against. These are the companies that have created categories out of white space and really take an ownership of them and created unicorns around them. So when I talk about category creation, this is really how I'm trying to position CardieX from the perspective of arterial health because this is really a huge white space for us in order to in order to own. And all of these have one thing in common. They all assess something, whether it's blood, whether it's fitness or the sleep, whether it's our blood oxygenation, they all assess something. So when you look at how we are building the business and the messaging, we're really, really at the right place, at the right time in terms of the opportunity because we have this specific sector that we are targeting and a specific question that people ask more than any question, just given the size of the market, which is really what is my risk of heart attack and stroke and what can I do about it? And there's really not anyone in the market that provides the analysis that we do from the perspective of the technology that we have in terms of answering this question, particularly from the perspective of the technology solution that we provide. So just to refresh everybody, so we provide very -- in order to satisfy that question, what we do is we provide very detailed biomarkers in terms of cardiovascular health in order to give a much better and deeper insight into the risk of cardiovascular disease. So they're unique to us in terms of the technology that we have. We invented the technology a little over 24 years ago when we were first able to show that we could extract these biomarkers on a noninvasive basis. So when Niall and I first got involved and we first discovered this, we're obviously super excited about the opportunity. But what was even more exciting was the fact that at the time and really up until we decided to launch the CONNEQT business, it was only being applied to a very small but very significant market, which was the market, which the ATCOR traditional business was targeting, which was specialist clinicians, pharmaceutical companies and research. But the vision that we had and which we've been executing against with CONNEQT is really taking that original technology, expanding it across mass health care markets at scale, putting a $35,000 device in a sub-$500 box and then really creating a business model outside of that which provided, as you'll see, a path to subscription and membership revenue and recurring revenue as we move forward. But all the building blocks were in place. We have unique CPT code. We are the only FDA-cleared device, which does full waveform analysis, which is really the technical term for what we do. We have a full suite of patents covering this and proprietary intellectual property. But more important than that, we've got 22-plus years of validation not just from a research perspective, we have probably -- it's a shock to most of you on this call. We have over 23,000 research publications in the PubMed citation here in the United States. And PubMed is the -- for those of you who aren't aware, it's the government database of all the research projects that are undertaken. So this is 23,000 research citations that we have underlying the value of the technology that we are bringing to market. So we have that historical legacy from a research perspective, but then also from the perspective of trust in terms of the best health care pharmaceutical companies, clinical organizations across that 24-plus years have been our customers and clients. So it's really -- when we look at what we're doing with CONNEQT, even though we kind of treat it like a start-up even though development started before COVID, but effectively, we've only really been in the market for a little over 4.5 months. To be able to come to the market with this kind of legacy as we grow the business, it's a significant value proposition that we continue to use through all the marketing and advertising in everything we do in order to expand that business. So anyway, just a little bit of a snapshot from a legacy perspective. And for those of you who are new on the call, we'll be posting this and obviously, we'll refer you to our website at cardiex.com and conneqthealth.com, if you want any more information. But fundamentally, the business remains the same in terms of how we're bifurcating it with the ATCOR Medical business, which has been the traditional business of the company with the XCEL device, which is really the OG of pulse wave analysis, has really been the tip of the spear for everything that we have done up until we launched the post device. It will continue this year to be the greatest -- well, this financial year, which is just ending this month, it will be the largest contributor still to that business. We'll see this flip next year as CONNEQT migrates over from the perspective of being the lead from a revenue perspective. But this business will continue from the perspective of being our key product into research markets, the clinical trial market and to specialist clinicians. Our research market this year has been good, but not great. It's been relatively flat. What has been soft, as we've announced previously has been the clinical trial markets. Mostly really due to just the pipeline in terms of what we had at the beginning of last year, not eventuating just through the natural sort of attrition of how these trials are run. We're still quietly confident that by the end of this current financial year, we'll have 1 clinical trial that we'll have contracted. And then it's just a matter of just expanding that business out as we move forward. I mean it's always been -- this business has always been spotty. We've had -- over the last 5 years, we've consistently had revenue from the business. We'd have 2 to 3 either re-ups, renewals, extensions or new trials each year. Sadly, the market really didn't really value this business because we really never got price inflections around those contracts, even though mostly -- most of the time, there were 9-figure contracts. But regardless, they've been a great cash support for the business that is now more and more as we move forward with CONNEQT being underpinned by the CONNEQT revenue. So this will continue to be a very specialist business. We're confident that we'll see those headwinds easing and that we'll be able to have better news on the clinical trial front, with our pharmaceutical company clients as we move forward. So let's talk about CONNEQT. So I think as everyone knows, we've got TGA approval a couple of weeks ago, which was just fantastic. I think it only took us 3 to 4 months in order to get that. So super excited about that. As we look -- as you look at how we are executing against that, the initial strategy is really just to use it as a basis to revisit the numerous health care provider groups, private hospital networks that have really come over the -- come over the transom over the last couple of years in terms of wanting a device that was maybe a little bit priced better within their budget range. So I mean that's really our first approach to the market. So the sales effort for Pulse in Australia at the moment will be led by the ATCOR team from the perspective of that team being the key drivers of our clinical sales as well as research sales and our pharma sales. So that's what they've been mandated to do. We're not in this financial -- well, in this calendar year, I should say, considering launching on a direct to consumer or direct to patient basis, I should say, in the same format that we are doing here in America. I mean that's just from the perspective of where we need to be focusing. We need to 100% be executing against our plans in the largest market in the world, which is the United States of America. And the market which gives us the biggest opportunity from a revenue perspective and from the perspective of shareholder value. So that's going to be our focus going forward. We can't bifurcate ourselves the size of the resources that we have and replicate what we spent 2 years from a plumbing and infrastructure perspective to develop in the U.S. in a market the size of Australia. It just doesn't make sense, and it would be foolish of us to do so. So for those of you who are wondering to the questions that we received around this, that's the position. It's also the reason why you obviously don't see us advertising in Australia, which was another question posed by a shareholder to us, as to why they can't find us on search or it's not on some of the paid channels or digital marketing. That's because 100% of those resources are dedicated to the U.S. I mean we have no -- and obviously, we're not going to feed the Facebook funnel, even more funds than we already do when there's no conversion opportunity around that. So I appreciate that you want to see it and be nice to see it across the Australian networks, but it just makes no sense. And that's really the reason why you're not seeing it in those markets. So anyway, so that's TGA. But from the perspective of the ecosystem that we're really building around the device, we were really not positioning ourselves as a device company. I mean this is really when I hark back to the start of this conversation in terms of where we're trying to position ourselves. When you look at what everyone else has done from the perspective of the playbook around providing assessments, be they through MRI machines, blood biomarkers, wearables, so on and so forth. It's exactly the playbook that we are developing around the CONNEQT Arterial Health Assessment. So you'll never see us selling a device or marketing a device if you're sitting here in the U.S. and you're being exposed to everything that we are doing, but you will see us marketing solutions for preventative health for specific disorders such as menopause, such as erectile dysfunction with arterial stiffness, obviously, heart disease, heart failure and targeting very specific markets around what we are doing, which I'll talk about more in a little bit in terms of sort of how we segment the market. But the package of what we are developing from the perspective of what we are marketing on conneqthealth.com is very, very much rooted in that vision and our concept of providing a full arterial health assessment. And a big part of that is the cardiovascular report that we launched, which on the face of it may seem simple, a report as to what your blood biomarkers are, but this is something that's really been 14 months in development from the perspective of the integration from an Rx Perspective with our cardiology, our telehealth provider in terms of getting on-demand, real-time prescriptions. So there's no delay in fulfilling those orders from the perspective of what we are providing into the market, not just to our customers from the perspective of on-demand reports as well as monthly sort of full trend reports, but also from the perspective of what we are providing to these people's positions, which is one of the biggest positive support tickets that we get back in terms of the whole assessment and what we are providing. So we're super excited about this. We think it's going to underpin the next stage of monetization. Well, the first step of the next stage of how we're looking at monetization from a recurring revenue perspective as we move forward. And we continue to dial it in and refine it. But this will -- this we hope our vision, I should say, not hope is for this to get to a scale of the closest comp comparable to who provides this in the market in the respect of arrhythmia and ECG, which is a company called Lifecore, which is doing a little over $100 million of revenue on the basis of this similar model that we have built out with these reports. So as I outlined at the start of the call, we're unique in this. Everything we provide from a reporting perspective is unique. It's being exceptionally well received in the market. So it really rounds out everything we're doing from a product perspective. So with all that sort of where do we sit in the market. So when you look across the landscape in the U.S. because we are U.S.-centric in terms of where we're positioning ourselves and the analysis that we undertake. Really, this is -- when you look at cardiovascular health and sort of the funnel of treatment and in diagnostics that you get put into once you sort of satisfy sort of threshold criteria with your primary care physician, this is really kind of what it looks like. So we have a big growth market here, multibillion-dollar market around personalized MRIs. It might be in Australia. I think it is -- there's a company called Prenuvo which is kind of the leading that. It's actually an Australian CEO. And then we have traditional scans like the coronary calcium score. We go head to head with all of these, but not just head-to-head, we go at them with a significant advantage from the perspective of where we sit in this ecosystem because we sit very, very much at the front end of diagnostics and prevention. This longevity market, which is forecast by the way, to be larger than the global pharmaceutical market in 4 years' time, really sits at the point of view of disease or at the back end in terms of isolating biomarkers, which have already been impacted by that disease. So corona calcium score, for example, is only effective if you've actually got coronary calcification. It doesn't give you any idea of risk of actually having calcification and Ergo risk of heart disease. So this is across the board. So we sit very much at the front end of this. So we are not targeting extending life so much as the longevity market is. We are targeting the biggest health disorder in the world, which actually shortens your life. So it's a unique messaging for us as we move to market, and it really positions us in terms of the companies which are really executing well against their individual offerings. So how do we do all this? And what's our go-to-market strategy look like? I mentioned earlier in terms of how we're segmenting the market out in terms of some of the personas that we are targeting, be it athletes with heart disease, be it people with long-haul COVID, which are at risk for cardiovascular disease. All of these come together in digital campaigns that we run across a sort of full suite of the platforms that we have available to us. So up to the last couple of weeks, the principal driver of our leads have been through the Meta universe of Facebook and Instagram. But more and more, we're migrating to our own organic lead generation in terms of the video -- videos we are launching across our own social channels with CONNEQT Health on Instagram, Facebook and on LinkedIn. But really, if you were here and you would sort of dipped the toe into our ecosystem, in any form, be it on our website or clicking a link on Instagram, you would see the scale of the media that would then be activated around you in terms of trying to convert you into a customer. But the front end of this is what's important. The front end and where, unfortunately, when you're buying a new -- when you're building a new brand, it's unavoidable. It's the creation of mind share across the market that we are targeting. So that's been a big part of what we've been doing from the perspective of branding, the influencer networks that we've been working with, both the paid and/or organically, for example, the lady on the right, just cardiovascular influencer who just reviews devices, just popped up on our feed, who had ordered independently and gave us an unboxing video. All of these things are what we're trying to cultivate and really, I said the heavy lift is in mind share. But then the next stage of that is really converting that mind share into market share. So we have to run both of those simultaneously. So again, to the shareholders that ask what are we doing from an advertising perspective, we're doing a hell of a lot. And it's really a significant part of -- well, I would say the majority part of the CONNEQT team from the perspective of the business, in terms of the day-to-day activities, activating new campaigns, ideating around new campaigns, manipulating the data. We've had questions over what are we learning from the data from our sales today. Well, the biggest learning is in the data around conversion, around allocation of funds in campaigns, managing the Facebook and the Meta algorithms and the same on YouTube, minimizing our cost of acquisition as much as possible, knowing when to turn on and off campaigns, what works, what doesn't. This is just a continual centrifugal force of energy and adoption to what the data is telling us. So here's just some sample campaigns, we do around the calcium score, or we do around sexual health and erectile dysfunction and arterial stiffness, for example. So it's a huge part of the business because really the CONNEQT business is a marketing business. And that's how we see ourselves and that's how we're trying to build the culture of that company in order to ensure that it's going to be a success. So I'll just highlight one thing that's really popped the last 6 weeks in terms of when we launched it. So I mentioned we have migrated from paid leads and our traditional mailing lists. And for those of you who have asked where we're at on the wait list, for example, that we launched last October, I mean that tailed off back in February, March was really when we saw from the data to sort of the last embers of that fire. So that's really been fully, fully squeezed. The good news is that those customers -- all those people on that wait list, we've seen very little churn. I would say less than 2% on the newsletter list for that. So they're still hanging around and watching us. And really, to be fair, those people who are on the wait list all signed up, the 23,000-plus from memory that signed up from that, really all signed up without actually knowing what we were going to charge them. So I think we did a great job in terms of converting at the price that we did. The next phase for us, as you'll see in a moment as to how we're going to look at that going forward in terms of the analysis that we've -- the deep analysis that we've done on a pricing perspective and the price elasticity around our offering. Anyway, so we'll talk about that in a moment. But what I did want to highlight is for those of you who have been on the website recently, we're now offering -- we developed in conjunction with the American Heart Association, a 28-day guide, to better arterial health. It's a 40 page, very detailed daily regime with notifications built into the app around arterial health, all driven towards lead generation. So these are all qualified leads. And as is indicated on the slide just in the past 4 weeks, we have over 4,000 people sign up for that. So this, we feel -- and this we feel going forward is going to be the best opportunity to convert on a constant basis in an organic environment, which we have 100% control over from the perspective of pricing. So just by way of example, we're seeing like sub-$1.30 leads for these sign-ups and in some cases, as low as $0.80 to $0.90. So this is phenomenal in the industry from the perspective of lead generation. So you might be asking, well, what do you mean by pay for leads? Well, obviously, we're running content across multiple platforms, which drive people to the site, which is more organic than conversion driven. For example, our best-performing page on the blog is around blueberries for arterial health. So at any one time, we have 30 people on the website, reading the blueberries for arterial health. So we're seeing those people convert at a significant level because they're obviously interested in it. They want to get more information. So it's a perfect opportunity for us to jump in there and put them into what we call a nurture campaign, which is really a funnel of newsletters that they start to get on a weekly basis, all with very sort of like analytically-driven psychological messaging around conversion. So everything is data driven as much as we can. It's where we live. It's where we have to from the perspective of conversion and everything we're trying to achieve for the company. So a little snapshot as to what we're doing from a marketing perspective. Sign up for the newsletter, please, so you can start getting more information around what we're doing in terms of visibility into the marketing. You can do that by just signing up for the report. And you'll get put into that funnel to see what it's like. Please go on to CONNEQT Health on Instagram and follow us. It means a lot to grow our subscriber base there. So when customers come in, they see we have scale that all helps. Share it, please, across all your social networks. We're all in this together. Every time we do a note internally, our team sends a note out to everyone. Hey, everybody. This is up on LinkedIn, Please, everyone share it. It's the scale of the network that helps us. So it'd be great if everyone on the call can sort of help us by jumping in there. Anyway, so that's a little bit of a snapshot as to that. I'll now pass it over to Catherine. Let's look at some deeper metrics around CONNEQT and how we're looking at the business going forward from the perspective of pricing, from the perspective of what we're doing from the ecosystem, and the software platform that we are building to support both CONNEQT and ATCOR and how we're looking at monetizing going forward. So Catherine, over to you.

Thank you, Craig. And our focus is 100% on growth and working on consistent growth cadence on a month-in and month-out basis. Obviously, A big focus is around direct-to-consumer because that's really kind of where our target is. But we are strongly seeing inputs and excitements elsewhere. And I thought I would first share, talk a little bit about what we are seeing from our classic research market. So first of all, the Pulse is already being adopted across a diverse area of research. So for example, in China, the Pulse is central to a 200,000 subject study in Shanghai, which the study will evaluate really the noninvasive assessment of central blood pressure in real-world community settings. We're also part of a study called POPPY at University of Cambridge, which is a 3,000 subject study that's using the Pulse to monitor the central hemodynamics of a woman from pregnancy planning, so preconception all the way to postpartum. And furthermore, the Pulse is being used to monitor arterial health in breast cancer, heart failure, public health studies on vaping, obesity and community wellness. And these studies show the versatility of Pulse and its potential to redefine how arterial health is being measured, managed and personalized across a large population. But that's just as encouraging as what we are -- what's really encouraging is what we're seeing outside of research and in the hands of everyday consumers. So what we've seen that is that our early pricing strategy validated a strong market interest. We confirm that consumers in the U.S. are willing to pay for an at-home arterial health assessment at a price point of USD 350. Those people that convert tend to fall into kind of a few clear groups, people with a family history of heart disease, maybe someone that has had a recent health scare or strong personal focus on longevity. And they are highly motivated and see immediate value in what the Pulse offers, and particularly with the cardiology report. But we also know that price point has its limits. While engagement has been strong, and we have, as Craig had mentioned, right, we have now converted as many of the 20,000 sign-up -- waitlist sign-ups as we had gathered. And you know what, that's not unexpected because many signed up before pricing was announced. And for some $350 may simply be more than they are ready to spend right now. And that's why we've been thinking about how do we lower that barrier to entry without sacrificing the long-term value or the lifetime value of a potential customer. And how we'll do that is actually by unbundling the hardware from service and while still be able to capture that value through subscription over time, especially with the long-term engagement. And by doing so, we'll be able to reach a broader audience without losing the depth of experience for those who are ready to commit today. What does that look like? Well, just to unlock the recurring revenue and better serve different customer segments, we are going to introduce a tier pricing model. So at the base, is a device-only option at $149. So it's a -- for someone who is really price sensitive, but that want some of these core metrics kind of kick the tires a little bit, but without that commitment of a larger spend. So as they kick the tire and with that, we'll introduce some -- a month-long freebie trial so that they can experience what we do offer longer-term. So with that, a little bit trial period, what we are looking to do is actually be able to convert them through in-app purchases. We have 2 different offerings. One is a onetime $99 upgrade, which brings the value that we can capture to about $250. That's perfect for those seeking advanced insights and reports with our ongoing costs because some people are just not subscription people. They rather pay as you go as they consume and exhaust the cardiology report. They will just buy another pack for $99. Now there are those that want a deeper ongoing relationship with their health, the prime tier, which will offer continuous insights, monthly reports and guided program that will be done on a subscription basis at $19.99 per month. Now that doesn't -- we are still maintaining the $350 pricing point, as we mentioned. So that we retained that bundle, but it will be described as a bundle and which will renew annually at $199. So a pricing structure like this allows us to capture the value across a wide range of users from the casual monitors who just want to kind of see a onetime information, test the water to those that are really seeking proactive subscription-based cardiovascular care. And of course, as we add new capabilities, new features into the app, we'll be able to increase other areas that we'll be able to monetize. And this is actually why the -- as we move into this the app becomes central to our business model. So by lowering the device cost, we are going to put the CONNEQT app into more hands, more hands, more eyeballs, more opportunity to convert and upsell. So unlike a traditional blood pressure apps, which many of you are probably familiar with and have used, they simply show numbers, and not much more. We have designed and are building the CONNEQT app to really engage, focusing on engagement to drive recurring revenue, offering insights, powering personalization. And really, our goal is to turn cardiovascular care into a daily habit or improvement in cardiovascular health into a daily habit. So to support the shift from a passive tracking to active engagement, a lot of our thinking goes into how can we embed behavioral science directly into the CONNEQT experience? I'm sure you'll have an app that you check daily, whether it's your fitness tracker, a calendar or your weather app, right? That's a kind of habitual interaction that we are building with CONNEQT. Our goal is to make the heart health part of a daily routine and not just something that you think about at the doctor's office. And we'll plan to do this by rewarding consistency using features like momentum tracking, achievement badges and personalized nudges to keep users motivated and engaged. And by reinforcing small daily actions, CONNEQT will create habit loops that keep users engaged and keep coming back and keeping happy and happily paying that subscription dollars because -- not because they have to, because it becomes just part of how they take care of themselves. And that's really how we turn onetime user into long-term health participants and increasing our annual recurring revenue. Of course, these individuals are the only ones who need better access to this kind of insights as we've expanded our conversations with pharmaceuticals and clinical partners, a different but equally important needs has also emerged. So what we've learned from working closely with pharma and clinical partners is this. They don't want access to just cardiovascular data. They actually want that data to connect directly into systems that they already use. I mean if you think about it, the way that health care clinical trials is moving into. It's all about how do we create different data lakes, how do we tie into the systems that sort of the existing? How does that data pass seamlessly from entities to entities? And so they don't want to look for one more dashboard or silo tools. In fact, many are already juggling too many disconnected platforms, which slows down workflow and creates unnecessary friction between data collection and meaningful insights into health care outcomes. So that feedback has reshaped how we think about our offering. Rather than building around our own devices, and with siloed dashboards with siloed data inputs and databases, we are evolving our approach to deliver biomarker data directly into our partners' existing environments, whether that's in a clinical trial, a hospital or a research setting. It's a lot more flexible and a partner-first model that opens up new opportunities and expands access to arterial health insights without forcing our partner organizations, our customers to change how they work. And this is what we call a biomarker as a service. So it's a cloud-based offering that we are looking to establish to become really the cardiovascular arterial health intelligence layer behind the next generation of digital health solutions. And I am so excited by this because we hold a unique set of IP and a unique set of data points that we can generate that no one else can. And so by taking our algorithm, putting into a cloud, putting an API in front of that, this unlocks real scalability. So instead of relying solely on proprietary hardware, we can now actually partner with device makers, health systems and digital health companies by embedding our technology wherever heart health insights are needed, right? All we can do is say, hey, give us a waveform from a cuff, perhaps a ring or any new hardware that may be coming out in the future, we are the one that can give you clinically validated meaningful vascular biomarker that no one else can. And that, to me, is the gold mine that in the opportunity that's ahead of us. So our cloud-based approach will enable a seamless integration, making it easy to deliver our biomarkers into existing systems, whether the data source is a piece of hardware or just a third-party health platform that wants to get additional insights. And our goal is to begin introducing SphygmoCor cloud to prospective licensing partner later this year as we explore new integration opportunities across clinical research and digital health settings.

Yes. The only thing I'll add to that, Catherine, that's fantastic, is to think of it like Intel inside for those of you who are familiar with that. So we're really the foundational sort of algorithm that drives sort of next-generation arterial biomarkers. And really, this underpins our -- not just our own device strategy, but also our licensing strategy, particularly from the perspective of wearables. So the ability just in a very simplistic format to take a signal from an Oura Ring, have that processed through the SphygmoCor, ping those biomarkers back to the Oura app and really just click the ticket every time that happens just like Intel and pretty much every single SaaS-based device system does globally. So that's -- I mean, this is -- it's a complex slide, but the simplicity of it is the ability for us to take what we've traditionally embedded from a firmware perspective or through a chip in a device, put it up into a cloud-based environment where we can then power multiple devices and multiple formats in terms of arterial health output. So we think this is the future. And this is -- when you look at what we are working on from the perspective of the next 6 months in terms of the outputs for the company. Most of it surrounds enabling the plumbing of SphygmoCor cloud, our wearable strategy, what we're doing from an app perspective as well as from the perspective of our new revenue strategy for the Pulse from the perspective of pricing and memberships that Catherine outlined. So key to that is get the new pricing launched, launching the next app, v2 as we're calling it, the Sphygmo cloud, as we're calling it, the biomarker as a service, together with what we're calling the wearable -- the SphygmoCor wearable development kit. This is basically the kit that we provide into developers in order to enable their device with our algorithms and connect into our cloud. So the launch of that. And then without forgetting about XCEL, our traditional products, this will be the first big upgrade for the XCEL in 8 years in terms of a bunch of backlog features and requirements that we've been constantly having requested by our clinical partners. So a lot of new releases in that respect. But I think the key for us is to show and demonstrate from a marketing and a conversion perspective that we're executing against CONNEQT and the arterial assessment service that we are offering and then have a steady delivery of news around that from the perspective of growth of, firstly, for this year will be based on devices. But from an analytics perspective, as we move through into '26 financial year, we'd be looking at a much sort of broader scope of metrics that we'd be looking to report from the perspective of conversions and membership subscriptions and so on and so forth. So we can -- not just for us and for our shareholders, but also from the perspective of the analysts that are covering us and what they are requesting from us going forward in terms of what they need to monitor going forward and how they are going to value us going forward. So these are all -- seem like simple things, but these are foundational to everything that we are building. So look forward for those. And then as I mentioned, new revenue contributions as we finish this financial year and kick off into '26 from the perspective of new pricing strategy. Greater success in the clinical trial group in '26 is a key theme. We're at the Drug Industry Association Conference at the end of this week and into next week. It's the biggest event for us every year. It's where we've traditionally got in most of our contracts. The last Bayer Trial we got through there. The [ Clinica ] trial, which was an outsized trial for us, as we all know. We got through the DIA. So we're participating in that over the course over the next 7 days. So that's where we're at. We feel very excited about what the next 12 months holds for us. We're all working extremely hard to make this a success. As I mentioned at the top of the call, we think we have a unique position in a market which is wide open to us to claim from a category perspective and create significant shareholder value around that. And ultimately, building a substantial company that not just drives shareholder value and wealth, which is important to all of us, but equally important for us as a company is impactful in everything that we are doing in terms of the technology solutions that we are providing. So with that, I'll finish up. While Catherine was talking, I went through the list of questions that we had, the 14 odd. The only one that we didn't cover was related to reimbursement codes, which I sort of talked about in the ATCOR slides. The question was, we understand Cardiex holds reimbursement codes in the U.S. Are they actually using these codes? Yes, absolutely, yes. Since day 1, the CPT code 93050, which is the code which covers post way form analysis is used across the board from a clinician perspective, our largest client just as an FYI, Southeastern cardiology builds a little over $1 million a year on that code. And just by way of reference, the codes, depending on what state and level of coverage you're in, it's about $16, $17. So there's a lot of tests that have been done out of that cardiology practice. And then we have sort of scaled use across all our clinician partners. But I will say just in closing, and on that point, is that from day 1, the code has never been a key driver of value for us when selling into a practice. For some practices, it's something which is utilized more than others. But really, the opportunity that we put in from a sales perspective, when we're talking to our customers, is always led by the value proposition from the perspective of earlier identification and prevention of vascular disease through unique biomarkers only available through the SphygmoCor technology. And more than anything else, it's important that, that resonates rather than us going in and saying, doctor X, if you buy our device, you'll be able to make $1,000 a month by charging Medicare back for it. So I think that's important, particularly as we look at the business and what we're building, we never really think about the codes. They're in the deck. They are now marketing materials to our clinicians. So it provides value to some physicians. But from our perspective, we're more interested in making an impact and selling that and proving that out with everything that we're doing with CONNEQT. So with that, I'll finish up and pass it back to you, Rod.

Thanks, Craig. It's a great rundown, and it brings today's webinar to a close if you feel you've -- we've missed your question or anyone has any further questions, you can always submit them via e-mail to [email protected]. Thanks, everyone, again, for joining us, and have a great day.

Thanks so much, Rod. Thank you, everybody.