Micro-X Limited (MX1) Earnings Call Transcript & Summary

First introduce my fellow directors. Our Managing Director and Chief Executive, Mr. Peter Rowland.

Thank you. Good morning, everyone.

And our nonexecutive directors, Mr. Patrick O'Brien, Dr. Alexander Gosling, Ms. Yasmin King and Mr. Jim McDowell. In addition, Mr. Justin Humphrey is here representing Grant Thornton, the company's auditors, should any questions or matters need to be directed to the auditors. As Kingsley mentioned, voting today will be conducted by way of a poll on all items of business. Please note that voting is now open. I will commence by providing you with my address to the meeting. On behalf of the Micro-X Board, I am pleased to welcome all shareholders to our 2021 Annual General Meeting, which is again being held virtually due to travel restrictions. Since I stepped into the role of Chair of Micro-X earlier this year, I've started to appreciate the significance of what the team has achieved, reinventing x-ray technology in a way that opens transformational opportunities by overcoming developmental hurdles and carbon nanotube technology that many others have tried and failed to achieve. We are well aware of the dangers in pioneering new technology, which can limit achievement of its commercial potential. And it is for this reason that we've devoted considerable time and resources over the last 2 years to transition and building our go-to-market strategies, capabilities and focus. Our goal is to establish Micro-X as an innovative x-ray company and in doing so, revolutionize the worldwide application of x-ray technology. So when we look at the many highlights of this year, from new products and approvals to major funding awards, one of the key achievements which stands out is the shift to creating a market-focused business unit for each of our 4 products, each with their own high-quality leader with commercial targets and accountability. To me, this is like having 4 individual high-value tech businesses, each with a $1 billion potential, all under the Micro-X umbrella and all sharing a common core technology. We did this to focus our skills and resources and to allow us to tailor each of our 4 product lines to their individual markets, customers, channels and needs. This allows each product line to focus on growth strategies, which suit its market needs and opportunities and which have the best chance of success. So when people ask me, who are the Micro-X competitors, I say we have a few. As we have 4 businesses, which each and their own right, is matching or beating their respective competitors in mobile radiology, bond detection, checkpoint security and medical CT imaging. We truly believe that few other Australian high-tech companies have this bright or big a future. Of all of our achievements during the year, the 2 most strategically important, with the fast tracking of our checkpoint security and mobile stroke imaging programs, from the development concepts into fully funded operationally resourced business units. The first of these occurred when the U.S. Department of Home Health Security selected Micro-X to develop the next generation of airport self-service security checkpoints and baggage screening with the award of up to USD 4 million. I'm proud to say today that we have 2 roles in this. First, as the integrator or in the world of defense, prime, for the next generation of airport security portals. The second is to provide hand baggage screening for the new portal. And in this, we are the only company that has been contracted to the U.S. Department of Homeland Security. The new passenger portals will change the airport experience for millions of air travelers as well as hugely improving threat detection. This unique award from the U.S. government provides a strong endorsement of the extent of our commercial opportunities created by our carbon nanotube technology. I know that Brian Gonzalez, who heads the business unit, and his growing team of engineers based in Seattle, are working hard to deliver the outcomes required. So that one day, shareholders may get to experience firsthand our advanced security capabilities, whether that be in an airport, train station, government building or even a sporting venue. The second strategic achievement was the selection by an international panel of experts of our CT stroke-imaging technology for $8 million of grant funding under the federal government's Medical Research Future Fund Frontier Health program in conjunction with the Australian Stroke Alliance. This funding will see our CT business unit, led by Anthony Skeats, develop a miniaturized lightweight brain CT scanner that will be able to provide stroke diagnosis on onboard road and air ambulances, allowing for immediate treatment of the stroke to begin. This pre-hospital stroke care inside the golden hour will make a huge difference in improved patient outcomes, particularly in remote and rural areas. Importantly, this funding from both the U.S. and Australian governments, puts us well on track to fully develop both the checkpoint and stroke technologies all the way to a commercial product. Retaining full IP ownership of both these final products gives us control of our destiny as we take them to market. Our existing commercial products in mobile radiology and bomb detection, which is currently in development, have also taken great strides. And I know Peter will touch on some of these points shortly. Each of these represents large and growing current revenue opportunities for Micro-X as we increase our market penetration. In our mobile DR business unit, we spent considerable efforts since shifting away from the exclusive OEM strategy late last year, to really build out our own world-class team of sales executives and new channel partners who can take the product to market. I'm delighted to welcome Charlie Hicks as business unit leader to drive this unit forward. And Charlie adds another level of commercial experience and capability in that sector, which I'm sure will be invaluable. I also look forward in the next 6 months or so to the full commercial launch of our IED x-ray camera, which we recently named Argus, inspired by the 100-eyed giant from Greek mythology. There is already strong customer interest from the police and military sectors in our prelaunch activities and industry exhibitions. So our focus is to deliver the product they so desperately need as soon as possible and turn the potential to save lives into a reality. Of course, none of this is possible without the funding of shareholders, and we appreciate the support when we raised $34 million this year, which allows us to strengthen our commercialization by bolstering sales and marketing activities, opening our Seattle office as well as retiring all of our debt to put us in a strong position from the balance sheet perspective. We're building a growing following of high-quality investors and institutions, and we continue to promote our message and stay engaged with our shareholders. Last year, we set ourselves the ambitious goal of having 4 high-margin product lines within 5 years. And I now believe we have the plans, the contracts and the people in place for this to become a reality. We will now build 4 businesses, each successful and rapidly growing in their own rights. On behalf of my fellow directors, I would like to thank all our shareholders for their ongoing support and also to Peter and the team for all their hard work and expertise in delivering yet another strong year of technological and commercial advances. I will now hand over to Peter, who will give a presentation on our business goals and outlook before turning to the proceedings of the Annual General Meeting. Thank you.

Thank you, David. Before I start my presentation, I'd like to share with you a video that we produced earlier this year for -- in this COVID time when we can't travel up to show how culture and describe the character of our company. [Presentation]

[Technical Difficulty] Apologies for that. It seems that making carbon nanotubes work is an awful lot easier than... [Presentation]

[Technical Difficulty] As I was trying to say, making carbon nanotubes is an awful lot easier than trying to get videos to play over Zoom, somewhat, obviously. Let's -- we'll play it again at the end when we can -- when you can enjoy it. But It's been very well received in -- by a number of people. And it is a way of -- a very good way of communicating, as I said, the character of our company and the way of our culture. So now let me turn to the presentation. A clear vision and focused execution is very much our mantra at the moment. It's been a huge year in 2021. The 2 highlights, as the Chair pointed out, are the 2 big contracts that fund us, was from the American government and the Australian government by the Stroke Alliance, which fund the 2 new exciting products that really power our future. The capital raising earlier in the year has capitalized us properly to start this ambitious journey, and we've made a lot of progress in a lot of other fronts as well. So we'll move on to those. The strategy, which we -- just go back 1 slide -- which we articulated last year at the AGM, is -- that is part of the clear vision. This hasn't changed. It's -- we have this technology. We think we have at least 5 or 6 years' lead over those that would try to follow us. And our strategy is all about how we monetize that. But the planks of it are early commercial leadership, just being successful and getting into the market quickly. We look for the low-hanging fruit products. And if we are commercializing those first, we have a clear commercial advantage ahead of everyone else. Our strategy again is to commercialize high-end value chain, and we'll see examples of that later in the presentation, turning the nano technology into larger and larger saleable items. And of course, our partners and collaborations remain a key plank. All of that boils to our 4 production lines, all based on the common technology. They've all got global sales volumes with no competitive alternative. Because of the -- no competitive alternative, they're high margin. And we're planning to have all of these operating and generating cash within 5 years. So the 4 product lines. It's -- and that's, as the Chair said, exactly how we want you to think of -- it's 1 company, but it's 4 businesses. Each of these 4 products produces a whole range of variants and subsequent products. So we're trying to think of these now as 4 business units, each of one which could be a company in its own right. As you see, the sales rollout is sequenced and the addressable market of each is enormous. So starting with mobile DR, driving point of care is -- we're serving a global trend here. And look, COVID has helped that. More and more health care is being provided at the point of care, less and less in big hospitals, and that's shaping our approach to this market. Our strategy now, led by Charlie Hicks, who knows this market so well, is 3 different kinds of paths to market. Obviously, OEMs are a key part. We started with Carestream no longer exclusive, but we're well down the track in discussions with other OEMs for global radiology distribution. But the bulk of our attention at the moment is independent distributorships and dealerships. A large number of small independent dealers selling a product now because of the work we've done during the year is a Micro-X branded product with the control of our own software detectors, so it's in entirely our product. And that's -- that gives us control of our destiny. The direct sales, we're doing in Australia, and that's looking to be very, very promising. We're quite excited about where we think we can get in Australia. And so we see a mixture of all 3 of those building the market share that we're looking for. Installed base is our friend. We've got over 250 units now in service in 30 countries. And we're already seeing that those are the countries where we're getting some sales traction repeat business now that the COVID surge has passed. $3.6 million for last year, plus, of course, the Australian Defense contract. But the customer demand is growing in all the key markets. We're looking, obviously, in -- it's a global market. The Seattle office is key in helping us as a base for future expansion. Also opened a base in the U.K. with our European sales manager, and that's allowing us to address the Middle East and Africa. And of course, Australia and Oceania with the ARTG listing is looking really good. We're looking at that from here. Of course, the next week, in fact -- I'm on a plane tomorrow, and it's a long time since I said that. We are coming out with our first public exhibition at the biggest radiology show in the world, the Radiological Society of North America, the annual meeting in Chicago. We have our own booth. That's what it looks like. That's what it will look like on Thursday when we're building it. But that really gives us a chance to launch the company and our technology, show the capability, sign up a lot more distributors and achieve some sales. Where the big focus of this is launching our second-generation product range and the promotion that we're now going to offer as part of this big launch -- splash -- I'm giving you a sneak preview here, is a tubes for life warranty. The data on our in-service reliability is now so good that we think we can offer a lifetime warranty on our x-ray tubes. But -- and that's -- that will really grab the market next week by storm because nobody else does that. No one else can get any closer to that. So our go-to-market strategy involves updated branding materials, much more customer focus, higher product margins, obviously, because we're going to market. We're getting closer to the customer ourselves. We're launching some new brand names, the [ Pico ], the medical device in acute hospitals and temporary facilities. The [ Neo ] is a specialist variant of that, that we're aiming at pediatric and neonatal intensive care units. And of course, the Rover, we're already pushing into military applications and has seen some very good results in door-to-door service, that we've got 2 door-to-door X-ray services operating here in Adelaide. And of course, launching into the veterinary market with our first trial there. So the key features which drive the sale. Look, the core competitive advantage in this business unit is obviously, it's the small size and weight, additional reliability that we can turn monetize. Workflow designed by radiographers, that's still really important. The best feedback we got was somebody who said that they thought that this unit has been designed by radiographers. That's exactly what we want. And our market offering is premium tier performance at mid-tier pricing with all the other benefits. But in the longer term, we're seeing this technology with very, very almost only software variations can offer new applications with -- in the same basically hardware in fluoroscopy and dual-energy imaging and bone mineral density management. That's part of our vision that mobile x-ray really is the future of a lot of general radiology in the future. X-ray cameras is saving lives in the world's most dangerous workplace. There's a couple of us on the call today that recognize that picture in the -- on the left there from our earlier years. But that's exactly the scenario that this unit is addressing. If you want to assess a terrorist device and provide explosive device with the conventional x-ray, you've got to somehow rather be able to place that detector, and that is extremely hazardous. That's the problem we're trying to solve. So how do we do it? The Argus does it with an integrated detector, it uses backscatter. So we call it a camera because it operates like a camera. It takes -- it's a point and shoot. The whole point is that you can get it carried down range by the robot pointed at the target, and you can see the image comes up on your tablet [indiscernible] on the way. It's a high-resolution image, small size. It's looking really attractive. It's a pivotal year for this product. We're in the final stages of design. We're hammering down to getting our -- we've been doing premarketing, obviously. But our first prototypes available early in next quarter for customer demonstrations with a product launch in quarter 2 leading to the long-term sales thereafter. This is -- it's a very high-margin device. So the timing of those sales is important to us, but it's a really exciting product. The addressable market is huge. It's -- police is key. There's over 5,000 in the military contra IED bomb squads. In North America alone, there's nearly 700 bomb squads. The U.S. Defense deploys over 2,000 EOD robots. So there's a lot more of this goes on, than you'd imagine. The -- we're already engaging with customers. We've hired 2 salespeople, 1 in Australia, 1 in the U.S.A. They are both previously bomb techs, so they know the world and they know that bomb disposal community. And we've been exhibiting in some of the major expositions to make this huge innovation well known. We've done 2 in Washington, D.C. and a really big one in London recently. And we're providing information to both U.K. and Australian government. Interestingly, we just last week responded to a request for information to the Australian Defense Force, and one of the things they were asking for with this group clearance, and it turns out that's a wonderful way of new application for the same technology. And as you see from the illustration on the left, which is what we're proposing to the Australian Defense Force, you get to sell 3 of the Arguses for each one of the equipment, which is always a nice gearing ratio for that. So checkpoints is our next business unit. A better experience for travelers is what we and our main customer, the Department of Homeland Security, is trying to achieve. I know it's a while since we've all been in airports, but we can still remember the horrors of what checkpoint looks like, and you always encounter that when you're short of time for a flight. But the -- this is a very customer-driven concept, to improve the travel experience. The TSA have long dreamt about how they could do this, and the idea of a self-service checkpoint has waited for an x-ray solution. And our x-ray is that solution that happens to be an x-ray solution that we pioneered in conjunction with the British government under the 2 contracts that we've got from them. But it's all about passenger managing themselves through the checkpoint experience. So it integrates with passport scanning and the photometric face ID, scanning of the body with millimeter wave and then x-ray, a CT image of the luggage. Automation improves the experience. It will be much faster. Because it's automated and because of our technology, we're going to get better threat detection, so it's safer. The indications are, and the TSA are very strong on this, that the passenger will respect privacy aspect of the self-screening portal and the -- not having to go through the sort of degradation of a lot of the personal examination. And of course, less interaction with security staff has really encouraged the department to move fast on this because of the COVID threat. Again, giant market, $24 billion in the U.S. in airports alone -- I'm sorry, $8 billion in U.S. airports. And in funding this, the TSA's annual manpower cost is $4 billion. So you don't have to reduce many of that before this pays for itself. I'll give you an idea on the space that the -- our units are tiny compared to the conventional x-ray lay. Our technology uniquely allows that. It's a CT image. As you see, it's a 3-dimensional image, as I said, based on the work we've done in the U.K. The U.S. government contract funds this development and obviously, all the airport's security is provided by the Department of Homeland Security. And of course, future applications using artificial intelligence is something that we're going to be building to just further improve how we can look at these images. The 2, as David mentioned earlier, we have to think of checkpoints in 2 halves. On one half it is the miniaturized CT, the baggage scanner itself based on our unique x-ray technology. But the fact that we've got the only contract to develop -- to design and develop the concept for this full cell service portal, integrating all this together. When I talked earlier about moving up the value chain, this is a really good example of that because now we're -- we've got the opportunity to design and integrate other centers to provide, on a turnkey basis, the entire portal. Again, the market for this is huge. Just the TSA, which is the operating arm of the Department of Homeland Security, operates 2,200 x-ray lanes. The -- each x-ray lane, if we said, okay, so how many of our self-service portals do you need to replicate the passenger throughput of today, the answer is 5. So 5 of our portals can do 300 passengers an hour. However, if you look at it on a real estate basis on the square meter footprint, each current x-ray lane has the same footprint as 8 of our portals. So we can almost double the throughput in the same space. And of course, space in a lot of airports is at a premium. So it's a really compelling and a giant market. And the message here is we understand exactly how important it is. And the opportunity we've got to move up the value chain as a leader and a prime contractor with our collaborators. So we're doing that in a number of areas, not just in the technology, leading the other innovation in automation and body scanning. But obviously, working with our customers and the regulators because this isn't going to be a new standard of detection and actively participating with the government and industry work [ shocks ] because we've got to bring the industry with us in this new journey. So lastly, our fourth business unit is CT. CT is so small, it can fly. The media event that we did at the Adelaide Airport here a little while ago when we signed the contract with the Australian Stroke Alliance has just about gone viral. So it's turning a lot of heads around the world. It's our first product in this CT area, and it's a really good low-hanging fruit application for this technology in stroke imaging. The whole idea here is taking stroke diagnosis from the hospital to the ambulance. Obviously, saving lives is what we're trying to do in the golden hour. We're fighting the fact that 2 million brain cells die per minute during an ischemic stroke, 3/4 of all strokes are ischemic. The key thing here is that the diagnostic standard for treatment is using CT to rule out any bleeding. It's most likely to be a belief that you have to confirm, as it's most likely to be a clot, but you have to confirm that there's more bleeding before you can administer clot-busting drugs, and that's the key thing that we can do. The early diagnosis allows treatment to happen in the ambulance, and the current technology is never going to proliferate. It's just too big, too clumsy and way too expensive. The interesting thing is the proliferation of interest in this because when we started working with the Melbourne Brain Centre, there were 3 of these trials happening in the world. Now you can see on the map, there are trials happening all over the world. All of these trial sites are gathering the same data, which is the huge improvement that you get in patient outcomes if you do point-of-care treatment in the ambulance. And so that says that the -- we're moving very quickly in this to where mobile stroke diagnosis and treatment becomes the new standard of care. The market opportunity is huge just because of the number of ambulances that can take it. And the whole point is you get the best -- I mean Melbourne has got one ambulance. So it's a bit of a lottery if you have a stroke in Melbourne, whether you get that ambulance or not. But when it's in every ambulance, you have the proliferation to make a difference. So this is how the technology works. A little reminder, some of you -- you may not have seen a CT machine, a big donut with its clothes off the floor. But that's been on the last, all 700 kilograms of it. And all that equipment that you see along the hole in the middle, all of that equipment in the gantry rotates at 200 revolutions per minute. When it winds up, it sounds like a jumbo jet starting. But it -- I mean, it really is huge. You see our solution, it's small. There are no moving parts. You can see the little miniature tubes, and if you can grab my video here. Here, where we're making the tubes, is one of the new mini tubes, which is the center of this product. It's absolutely tiny. You hold it in the palm of your hand. 29 of those, as you see, spaced together, there's an example there of the holding structure. It forms the arc. Each one of those in turn, flashes the tray image. And you can see from the image reconstruction already, and we've hardly started, we're seeing the kind of diagnostic information that you need to perform that diagnosis. So we're looking to have a commercial product in 4 years with this funding. As I said, by then, we are expecting it to be accepted -- the mobile stroke to be the accepted standard of care, and that's about the time that this unit becomes available. Proliferation is the key. The regulatory approval in 4 years is what we're working at, and we're really pleased to be working with this collaboration, particularly with Fujifilm, who produced the world's first curved detector. And we have one of our staff working and doing a PhD, in fact, at John Hopkins University who've done a lot of work in this [indiscernible] CT imagery construction, and they're very excited to be part of the team as well. So in summary, that's our 4 dedicated business and business units, 4 businesses. Yes, the idea of having them as business units is so that each one of those can be driven to maximize the growth in that particular area. You add them all up, we're looking at $30 billion of addressable market. And I think they're still gray numbers because the size that this company will grow to be in these 4 areas in coming years is going to be truly astounding. So that's where we are. Thank you, Chair.

Thank you very much, Peter. What I'd now like to do is call for any general questions attendees might have before we move to the formal proceedings for today. So if you could please lodge any general questions via the Zoom app, that will be fantastic. There will be opportunities for further questions, though, throughout each resolution.

We have some questions,[ now ].

Good. Thank you.

First question is I listened to your Alan Kohler interview, and he genuinely sounded blown away by your achievements. However, he did raise a point that Micro-X looks drastically undervalued and could be a target for takeover. Should we be looking at a dual NASDAQ listing to get our share price up to keep Micro-X Australian?

Well, I'll pass this to Peter. But my first of all is, dual listings are not simple. And for a company of our size, they're not straightforward. Over time, we might consider that. But I would say we're not going to consider it this time.

Yes. I think I would agree with that. Look, it is something that we've considered. It -- at the moment, it's a huge investment in resources and time when we're -- we want to be focused on our execution. At some point in the future and particularly as the footprint of our business in North America grows through our Seattle business, and of course, our work with the U.S. government on checkpoints is going to be driven out of that office. It is something that we'd obviously look at to give us access to the larger capital markets. But immediately, just the drain on resources, I think, could be counterproductive to that.

Our next question. What is our communications plan to maximize our PR and announcements?

Peter?

Look, we're -- look, to be absolutely honest, I think Nano X shows us that we can do a lot better in communicating. We plan to do an awful lot more. We're obviously increasing our resources in that area because just the amount of business that we have to communicate is larger and I would -- we've got many, many more stakeholders. So it is something that we're certainly looking at our comms and our marketing is an area that we're concentrating on at the moment, and you'll see some changes to that in the new year.

I think one of the things Peter has been doing and the team, they've -- he's carefully growing each of the business units and the teams so that we've got more horsepower in the markets in which we want to operate. So I think we'll find that over time, each of these business unit leaders, it's not just Peter out there, there'll be 4 other really senior voices that will be able to communicate the company's message and also the value and potential of our products. And obviously, in next week's show that Peter's going to, will be an important part of that.

Yes. And I have to say our company's personality is such that we like to actually have achieved things before we boast about them.

Our next question is for you, Peter. What's the one thing that keeps you up at night, worrying about the future of Micro-X?

Look, what was keeping me up at night was just managing the growth. I think the last 6 months, as we formed the company into business units, has helped me sleep a lot better because our style of company, our culture and our -- the way we work best, it isn't suited to a big monolithic culture. So these business -- this business unit structure means that, as David said, I've now got 4 people losing sleep instead of just me.

Our next question is in relation to the CNT-based CT scanner. Have you got a working product already? And if not, what are the main factors, other than capital, that prohibit or inhibit producing one as a proof of concept?

Look, we've done the proof of concept in -- I mean the nice thing is that you can do that very easily by simulating the multiple sources in the imaging. And that's shown that we can -- I mean already, we've done imaging where we can see a 4-millimeter bleed. The target is a 3-millimeter bleed, and the Johns Hopkins people reckon of their experience in modeling is showing us we can do better than one. So we will outperform CT. The big thing in that is this little baby here, the miniature tube. That's a whole new -- it's not complex technology, it's ceramic and it's [ brazy ] but that's something that we want to plan in-house. We know how to produce it right now. The challenges that lie ahead for us are producing it in volume because our prototype has got to be something that we can make in volume. You fast forward very quickly in between -- and the tube is going to be common to our checkpoints, but our main focus here is producibility. We're at -- very soon into production of these, we'll be making 200 x-ray tubes a day, and that's a whole new scale of production compared to where we are now, which is we're speaking to you today from our tube manufacturing facility. The high voltage is the other thing, but the work we've done in getting the -- our first high-voltage generator, which is looking very, very good. A huge credit to the engineers who've done so well in -- we've never done high-voltage before, doing it for the first time. We've outperformed the best-in-class globally in terms of the size and cost of what we've got. But that core design is going to service all our products, and particularly the CT. But -- so there's no invention left in that product, just a lot of good, solid engineering, which is stuff that we're pretty good at.

Last question, David, after the RSNA conference and owing to the fact that the traditional medical buying season is Christmas, can investors expect a sizable uplift in income?

Well, we've always hoped for. But of course, we've got to be realistic that from going to conferences to actually converting that into orders, there is going to be a gap. So we've got to be realistic. But yes, we hope in the second half of this financial year that we will see a lift in sales.

Yes. We're putting everything in place for success this year. It does take time for -- I mean during the course of this year, getting a product under our own brand name that we could sell that involved getting our own detector, our own software, integrating that, getting it FDA approved. And until you've got a product that's FDA approved, you can't find a distributor that's particularly interested. We're now starting to find the distributors, and we're getting them up to speed. We're training them. We've got a big training session of all our distributors arranged in the -- because everybody is coming to Chicago next week. But each of them have got a pipeline. The sales pipeline is -- I mean, you get some early wins. We've been doing some quite exciting demos in the last few weeks and months in the U.S. of some hospitals that are interested. Yes, we'll get some before the end of the year. but it's a slow building of the pipeline as all these investments really start to gain traction.

I think Peter, you made a very important point earlier in your presentation that we have over 200 units in the fields in hospitals. And what we're seeing is hospitals which have experience with our product is beginning repeat orders. So this is very promising and hopefully will underpin our sales pipeline as it builds.

Yes. I think what we've seen happen is that in COVID, the panic around getting chest x-rays was enormous. And people will be using whatever they could to x-rays, as there was a shortage in the marketplace. But that very, very high intensity workflow imaging that everybody was doing last year has kind of educated the market that not all mobiles are the same. That the staff that we designed into Rover that really helps the productivity and the workflow is -- has been appreciated last year, and people are coming back because they're not coming back. They're coming back and asking for our unit. They're not going out for tenders. So I think people are starting to realize, because of our experience, the true benefits of what this new technology can do.

Just have one last question.

Kingsley has got one last question. Have you got one last question, Kingsley?

I don't. No. [ It was a comment ]...

You're welcome. Shareholders, thank you very much for asking questions. It's excellent. Plenty of opportunities to ask more as we go through the formal matters, which I'm now going to proceed to. But please don't hesitate to send in questions as I'm speaking. The purpose of this meeting is set out in the Notice of Meeting discussed with shareholders. And unless there are any objections, I will take the notice as having been read. There are 16 items of business for today, as detailed on the slide you should now be seeing, and we will present on individual slides the proxies received for each. 15 of these require formal resolutions. As shown on the current slide, Resolution 11 being the approval of the additional 10% placement capacity, has been withdrawn. Proxy voting indicated the resolution would not achieve the required 75% to pass. Moving on to the first item, is that we receive and consider the financial accounts and the reports of the directors and auditors for the financial year ending 30th of June 2021. It's not a requirement that shareholders vote in relation to the accounts. However, we are pleased to answer any questions relating to them. Does any shareholder have any questions or comments? If you do, please submit them via Q&A. To get your questions asked, use the function on Zoom, as you've been doing. There will also be an option for general questions, which we'll have at the end of the formal business. Kingsley, do we have any questions on the financial accounts?

No, we don't.

Given that there are no further questions, we'll move to the formal resolutions that do need to be considered. Proxies received in relation to the formal resolutions are set out in each of the following slides. The first resolution requiring adoption is the resolution to adopt the remuneration report, forming part of the Directors' report for the financial year ending 30th of June 2021. I move that the renumeration report we adopted on the basis set out in the Notice of Meeting. Kingsley, does any shareholder have questions or comments?

No.

Thank you. I'll now move to the second resolution. The next item of business is the reelection of Dr. Alexander Gosling as a Director of the company. . I move that Alexander be reelected as a Director of the company on the basis set out in the Notice of Meeting. Kingsley, does any shareholder have any questions?

No, they don't.

Thank you. On each of these resolutions, you'll see the proxies as voted on the screen. I'll move to resolution 3. The next item of business is the reelection of Mr. Jim McDowell as a Director of the company. I move that Jim be reelected as a Director of the company on the basis set out in the Notice of Meeting. Does any shareholder have any questions or comments?

No, there are not.

Thank you. Moving to resolution 4. The next item requiring a resolution is to ratify the issue of 53,917,763 ordinary shares at $0.34 per share on the 5th of February 2021. And I move that the issue of 53,917,763 ordinary shares be ratified. Does any shareholder have any questions or comments?

No.

I would remind shareholders, if anyone does have any question or comments, please feel free to enter them at any time. I'm now going to hand you over to Peter to present the resolutions 5 and 6.

Thank you, David. The next item requiring a resolution is to approve the increase in maximum total fees payable to the nonexecutive directors. I move that the maximum total fees payable to nonexecutive directors be increased from $300,000 per annum to $700,000 per annum. Kingsley, does any shareholder have any questions or comments?

No, there are not, David.

Thank you. Okay, so I'll move to resolution 6, approval of the issue of performance rights to Mr. David Knox under the employee equity plan. . The next item requiring a resolution approving the issue of performance rights to David Knox under the employee equity plan. Details of the issue of securities to David under the plan are detailed in the explanation statement with the notice of AGM. I move that the issue of performance rights to David Knox be approved. Does any shareholder have any questions or comments?

No, there aren't, Peter.

Thank you. Then I will hand back to David.

Thank you, Peter. Now on to resolution 7. The next item requiring a resolution is to approve the issue of performance rights to Mr. Patrick O'Brien under the employee equity plan. Details of the issue of securities to Patrick under the plan are detailed and explanatory statement within the notice of AGM. I move that the issue of performance rights to Patrick O'Brien be approved. Does any shareholder have any questions or comments?

No, there aren't, David.

Thank you, Kingsley. resolution 8. The next item requiring a resolution is to approve the issue of performance rights to Ms. Yasmin King under the employee equity plan. Details of the issue of securities to Yasmin under the plan are detailed in the explanatory statement within the notice of AGM. I move that the issue of performance rights to Yasmin King be approved. Does any shareholder have any questions or comments, Kingsley?

No, there aren't, David.

I'll now move to item 9. The next item requiring a resolution is to approve the issue of performance rights to Dr. Alexander Gosling under the employee equity plan. Details of the issue of securities to Alexander under the plan are detailed in the explanatory statement within the notice of AGM. I move that the issue of performance rights to Alexander Gosling be approved. Does any shareholder have any questions or comments?

There are none, David.

Thank you, Kingsley. Resolution 10. The next item requiring a resolution is to approve the issue of performance rights to Mr. Jim McDowell under the employee equity plan. Details of the share of the issue of securities to Jim under the plan are detailed in the explanatory statement within the notice of AGM. I move that the issue of performance rights to Jim McDowell be approved. Does any shareholders have any questions, Kingsley?

No, there aren't, David.

I'll now hand over to Peter Rowland to present resolution 12.

Thank you, David. Next item of business is the approval of the issue of shares to Mr. David Knox in lieu of cash payments for directors' fees. The details of the issue of securities to David under the salary sacrifice arrangement are detailed in the explanatory statement within the notice of AGM. I move the shareholders approve the issue of shares to David Knox in lieu of cash payments for director's fees. Does any shareholder have any questions or comments?

No, there are none.

I'll now hand back to David to present the remaining resolutions.

Thank you, Peter. Resolution 13. The next item of business is the approval of the issue of shares to Mr. Patrick O'Brien in lieu of cash payments for directors' fees. Details of the issue of securities to Patrick under the salary sacrifice arrangements are detailed in the explanatory statement within the notice of AGM. I move that shareholders approve the issue of shares to Patrick O'Brien in lieu of cash payments for directors' fees. Does any shareholder have any questions or comments?

No, David.

Thank you. Resolution 14. The next item of business is the approval of the issue of shares to Ms. Yasmin King in lieu of cash payments with directors' fees. Details of the issue of securities to Yasmin under the salary sacrifice arrangement are detailed in the explanatory statement within the notice of AGM. . I move that shareholders approve the issue of shares to Yasmin King in lieu of cash payments for directors' fees. Does any shareholder of any questions or comments?

No, David.

Thank you. Resolution 15. The next item of business is the approval of the issue of shares to Dr. Alexander Gosling in lieu of cash payments for directors' fees. Details of the issue of securities to Alexander on the salary sacrifice arrangement that detailed in the explanatory statement within the notice of AGM. I move that shareholders approve the issue of shares to Alexander Gosling in lieu of cash payments for directors' fees. Does any shareholder have any questions or comments?

No, David.

Finally, resolution 16. The next item of business is the approval of the issue of shares to Mr. Jim McDowell in lieu of cash payments for director's fees. Details of the issue of securities to Jim under the salary sacrifice arrangements are detailed in the explanatory statement within the notice of AGM. I move that shareholders approve the issue of shares to Jim McDowell in lieu of cash payments for directors' fees. Does any shareholder have any questions or comments?

No, there are none, David.

That brings me to the end of the resolutions required to be voted on at this meeting. I now invite shareholders if you have any further questions or comments you'd like to make.

There are none, David. no question.

If that's the case, ladies and gentlemen, that concludes all the items of business. In a couple of minutes, I'll close the voting system. Please ensure that you've cast your vote on all the resolutions. I'll now pause for a couple of minutes to allow you time to finalize your voting. And in that time, we will play with sound, I hope, our brand video presentation from Peter's presentation earlier.