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

Welcome to the Annual General Meeting of Micro-X. My name is Rebecca Puddy, and I'm Head of Corporate Communications. I'd like to begin by acknowledging the traditional custodians of the country throughout Australia, including the Ghana people, the custodians of the land on which we meet today. We pay our respects to elders past and present and extend that respect to Aboriginal and Torres Strait Islander peoples here today. Today's meeting is being held in a hybrid format, both in-person at Tonsley and Adelaide and online via the Zoom webinar platform with voting to be facilitated via the Computershare meeting platform. This allows shareholders, proxies and guests to attend the meeting virtually if they choose. All attendees can watch a live webcast of. The meeting. In addition, shareholders and proxies have the ability to ask questions via Zoom and submit votes via the Computershare meeting platform by clicking the link published in the notice of meeting. For those attending in person today, we have a roving microphone available to ask questions at the relevant time in the meeting. If you are on Zoom, depending on the format of your video screen, you may find it helpful to select fit-to-window for the Zoom view options in the toolbar. Today's meeting is being recorded, and parts of it, including the Chair's address and the CEO presentation, will be uploaded to the company's website. Questions can be submitted on Zoom at any time from any registered shareholders. [Operator Instructions] Please note that while you can submit questions from now on, the Chair will not address them until the relevant time in the meeting. Please also note that your questions may be moderated or if we receive multiple questions on one topic, amalgamated together. For those attending in person, a roving microphone will be available for questions at the allotted time in the meeting. Finally, due to time constraints, it may not be possible to answer all questions. If this happens, we will answer them in due course via e-mail or by posting responses on the Investor Presentations section of our website. Voting today will be conducted by way of a poll on all items of business in order to provide you with enough time to vote. The Chair will shortly open voting for all resolutions. As mentioned earlier, voting today will be managed by the Computershare meeting platform as set out in the notice of meeting. If you have not already lodged your proxy vote, you may vote live and online during this meeting via Computershare. With us today is Debbie Bernard from Computershare, who will be acting as returning officer for the poll. If you've not already downloaded the application, please do so now. You will need your postcode and shareholder identification number to log in. The steps for voting are straightforward. However, if you require assistance, please contact Computershare on (613) 9415-4024. I will now introduce Mr. David Knox, Chair of Micro-X.

Thank you very much. Good morning, ladies and gentlemen, all shareholders and other interested parties. It is with pleasure that I also welcome you to the 2023 Annual General Meeting of Micro-X Limited. I am David Knox, and I will be your Chair for today's meeting. As the appointed hour has been reached and the quorum is present, I declare the meeting open. Before proceeding with the formal matters, let me first introduce my fellow nonexecutive Directors. Mr. Peter Rowland.

Yes, hi.

Mr. Jim McDowell, who -- with me today; Mr. Patrick O'Brien; Dr. Alexander Gosling; Mr. Ilona Meyer; and Andrew Hartmann, who are attending via Zoom. CEO Kingsley Hall is also attending via Zoom from the United States, where he has just returned from the latest RSNA Conference in addition to a number of meetings in New York and Seattle, and he's currently in New York. Mr. Andrew Tickle is here today representing BDO, the company's auditors. Should any questions or matters need to be directed to them. Welcome, Andrew. As Rebecca mentioned, voting today will be conducted by way of a poll on all items of business. Please note that voting is now open. Any shareholders, attorneys, proxies or corporate representatives attending the meeting in person will have been issued with a blue voting card upon registration. If you've not been registered vote, please see the Computershare staff at the entrance. I will commence providing you with my address to the meeting. On behalf of the Micro-X Board, I'm pleased to welcome you all shareholders to our 2023 Annual General Meeting held in a hybrid capacity at our offices in Tonsley, Adelaide and via an online webinar. Before we turn to the resolutions in the formal business of today's meeting, there will be a few remarks from me, followed by a presentation from our Chief Executive Officer, Kingsley Hall. We will then have the opportunity for questions. And for those shareholders who provided questions in advance of today's meeting, answers have been included in my address or will be referred to when the relevant resolution is introduced. I would add that both my Chair address and Kingsley's CEO presentation are now available on the ASX announcements platform. Over the past year, our company has continued to meet and overcome challenges as we push forward with our development and commercial objectives to build shareholder value. As a company, our purpose remains to create revolutionary x-ray imaging to better lives, and we're driven by our commitment to deliver life-saving and life-changing technology to people across the world. This year saw the departure of Mr. Peter Rowland, first as Managing Director, and today, he completes his tenure as a Non-Executive Director. Peter was instrumental in driving the value of our carbon nanotube technology. And then handing over to Kingsley Hall, he is underpinning the future commercial growth of the business. I would like to personally thank Peter for his commitment to the company and for his tireless work in building the company from a fledgling idea to where it stands today. Thank you, Peter. Since taking the reins in May this year, our new CEO, Kingsley, has led a detailed operational review on all aspects of the business to identify our strengths and areas where we need to improve. This was presented as a strategy refresh provided to all shareholders in August. And as Kingsley will touch on in his address shortly, we're already seeing some early progress on a number of fronts. For shareholders, our key message is that we're accelerating our transition from being an outstanding developer of technology to an organization that can monetize this technology to generate revenues and shareholder returns. To do this, we've streamlined the business, removing costs and complexities that can slow progress for a small and nimble commercial enterprise, such as Micro-X. This was no more evident than when the Australian government approached us to buy a large number of Micro-X Rovers under very short delivery time frames as part of their latest $20 million humanitarian aid package for Ukraine. Announced by the Prime Minister in Washington last month. Under a reshaped senior leadership team with Kingsley, Anthony Skeats as Chief Operating Officer and Dr. Brian Gonzalez as CEO of Americas and Chief Scientific Officer, we've also focused our development priorities and pushed to deepen funding partnerships, which can reduce our cash outflows and our time to market. On that front, you will shortly hear customer feedback on our Argus X-ray camera, which is now in the U.S. being demonstrated. Our first Baggage Scanner prototype has just arrived in Seattle, ahead of its delivery to the Department of Homeland Security. As we look back over the financial year '23, we are immensely proud that our medical x-ray systems are in use across Ukraine providing valuable diagnostic support to frontline surgical teams working to save the lives of those injured in the war. Rovers are also assisting team doctors to make faster and informed decisions about injuries in professional sports. They're also being deployed to patient bedsides in hospitals in more than 35 countries. More recently, we achieved our CE Mark, which will now open up the European market for our sales team and distributors. Our engagement with distributors has also grown and become better focused on their needs and requirements, particularly in the United States with MXR Imaging and Medlink. As we have said, we will work to drive sales through cost-effective channels such as distributors, whilst using our sales to reduce our excess inventory. In effect, we're reducing our inventory levels and turning the excess inventory into cash. We recognize that our Argus development program, while now largely complete, has taken longer than we had originally indicated and hoped. I can say that our engineers have worked tirelessly this year to identify and overcome challenges. That has resulted in a final pre-commercial system, of which we are proud. Our rigorous Argus testing included explosives hidden in car doors and landmines buried underground has passed with flying colors with images received over 1.5 kilometers away. Now as we move towards first sales of the Argus, our commercial team that includes defense veterans is driven by a commitment to deliver a tool that makes the work of bomb disposal professionals easier and far safer. With no similar product on the market, we are also confident of driving strong returns from our Argus sales. Likewise, our staff working on the development of our airport checkpoint and brain CT are driven by desire to improve passenger experience and save lives across the security and health domains. Each product offers significant global opportunities, both from a commercial and altruistic perspective. In each program, we have a large and recognized industry party funding our work. In airport security, this work is now pushing forward to deliver a checkpoint where traveling passengers can pass through airport security quickly and with minimal interaction with security officials much like in a self-service supermarket. This is incredibly important work. We continue -- we'll continue in partnership with the U.S. Department of Homeland Security and the TSA where our latest contract provides us up to AUD 21 million of funding as well as invaluable support and access for real-life airport testing in the coming years. Our other partnership with global x-ray technology component company, Varex Imaging, agreed this year as part of our execution of our plan to bring our proprietary technology to the world. The deal to license multi-beam carbon nanotube technology brings more non-dilutive funding to Micro-X and the opportunity to grow global recognition of our innovative technology. The partnership has also brought to our Board the expertise of Andrew Hartmann, a highly experienced sales and marketing executive from Varex Imaging. At this I am renominating to serve on the Board, along with Patrick O'Brien and Andrew Hartmann. Patrick is renominating for a further 2 years, taking him up to our 10-year tenure limit when he will retire in 2025. The Board supports all of these reelections. With the retirement of Peter at this AGM, the planned retirement of Dr. Alexander Gosling at next year's AGM and Patrick's retirement in 2025, the number of Non-Executive Directors will reduce from 7 down to 4. This ensures we retain a high-quality Board with experienced directors while offering the opportunity to bring in new directors with different skills for our journey ahead. As part of that process, we will consider the markets we are entering and the need for greater diversity. We also believe that there's a small and growing technology company, it is critical for us to attract the best talent in a highly competitive global market for human capital. The key element of our remuneration philosophy is to put in place equity incentives for our leadership, staff and directors, which rewards them for achieving agreed performance hurdles that will deliver success for both our company and shareholders. In today's meeting, we will be seeking approval to renew our employee incentive plan and also approval from myself and a number of my fellow directors to be issued with shares for our work as directors in lieu of cash payment. Also on renewal this year, we'll also conduct a review of the role of our independent auditor. Having worked with Grant Thornton for a number of years since we listed on the ASX. We thank Grant Thornton for their service and also welcome BDO Audit, is represented by Andrew here today, as the incoming auditors. Subject to the approval of this Annual General Meeting, we feel BDO has the skills and international breadth we need for our plans moving forward. And we apologize for any confusion related the oversight of not including Resolution 12 to appoint BDO as auditors in the original notice of this meeting. Over the coming year, the Micro-X team will continue to push forward with the development of groundbreaking x-ray technology to meet global challenges. I thank the team for their dedication to working diligently through any challenges they face in developing and commercializing our world-leading technology. 2024 will mark significant milestones as we move towards first sales of Argus, clinical trials of our brain CT and testing of the first Baggage Scanner prototypes. Our recent achievement of CE marking now means our Rover X-ray system can be sold in all major global markets, and I look forward to the expansion of our footprint over the coming year. I thank you for your ongoing support for the company and are pushed to realize the commercial potential of our technology across the health and security sectors. While I strongly believe our share price does not currently reflect the true value of our company, we remain focused on delivering on our stated milestones, building our partnerships and growing our revenues. We will continue to actively communicate with shareholders on our progress and will strive to attract new shareholders and investors for the future. I would like to take this opportunity to thank the staff in Micro-X who are working with great skill and diligence to deliver the Argus preproduction units and the Baggage Scanner prototype to the TSA for testing. I'd also like to reiterate my acknowledgment of the role Peter has played in the creation and growth of Micro-X. The future of the company will be built on the shoulders of his vision. I will now hand over to Kingsley Hall for his first AGM presentation as CEO on our recent progress and outlook. Thank you.

Thank you, David. Can we have the slides up? Can I -- Rebecca, can you share the slides. Thank you. Yes, so thank you, David. Well I have just come out of RSNA in Chicago from Sunday and through yesterday afternoon. It was a fantastic conference. We had the opportunity to spend quite a lot of time with our U.S. distributors, independent distributors, Medlink and MXR Imaging. Medlink, in particular, had the Rover Plus not only on their stand but in a very prime position within their stand. And I saw them talking many people through its attributes and its affordability and the way that they could operate it. MXR didn't have any equipment on the stand, but Rover featured quite prominently in the video spill that they had running on the televisions throughout their facility. So we're represented very, very well. We had a great opportunity to talk to a lot of the major players throughout the industry, Canon, Konica Minolta, Carestream. And obviously, Varex as well, we had the opportunity to speak with Sunny, who's Varex's Chief Executive, talked through the technology transfer agreement that we signed -- the collaboration that we signed with them last year, which is going very well. We've completed 3 of the 5 milestones and the remaining 2 milestones are scheduled to be completed over the next 3 to 4 months. All in all, a fantastic conference. There was significant interest in our brain CT scanner. We had a full-scale model at the conference. We had a lot of people come and show a lot of interest in it. There We had a couple of our mini tubes there that will power the scanner, and there was significant interest from many people in the conference and it was an outstanding conference. And we're well represented. I also had the opportunity to spend some quality time with our team in Seattle earlier this week and see that the prototype for the Baggage Scanner for TSA arrive safe and sound. They are taking great priorities that are taking images at our facility in Seattle, and we're now waiting for TSA to give us their timing of when they'd like to collect and start their testing. So all in all, great time here in the U.S. I wanted to kick off the formal part of the presentation by taking everybody through our company purpose, which is creating revolutionary imaging to better lives. We went through a process with all of our staff probably 6 months or so ago now. And what we really wanted to uncover was find out what it was that drove them to want to come to work every day and why it was so engaged. As David pointed out before, we've not only got an extremely talented workforce, but a very committed one. And what we found through the process was there were 3 really common threats and there was the creation and the technology. There was the commercialization of that technology and getting it into people's hands. And overwhelmingly, people really wanted to do something great with our technology, which is where the [ bettering ] lives came into It was a fantastic process, which I think everybody enjoyed. I believe the purpose very accurately reflects why our very committed staff love working at Micro-X. Thanks, Rebecca. Look, at the heart of our company is our technology, and it is the future of x-ray. It's smaller, it's lighter, it's more reliable than others, and it gives us the opportunity to access so many applications that traditional x-ray just can't access. All of our tubes, and you can see 3 of them there now on the screen. The one on the left is the tube that powers our Rover Plus, the bedside imager. The one in the middle is the tube that powers the Argus and the Baggage Scanner, which is at the heart of the Checkpoint project. And the 1 on the right at just 0.5 kilogram is the mini tube, which is the tube that will power our brain CT scanner. And we, in fact, took the first images with that tube just 1.5 weeks ago. So the dreams become a reality in that respect. As I said, it's the same technology platform [ being ] the electronically controlled carbon nanotube emitters, but we apply it across multiple applications. Thank you. Moving on -- and again, we'll talk about each of these 4 products in more detail, but just to go through this suite of products. On the -- moving from left to right, on the left is the Rover Plus, which is our mobile bedside imager, very lightweight ultra mobile, delivers high-quality images in any treatment area. And that can be in a hospital, in a deployed medical hospital on the front line in the Ukraine, as David mentioned, and as we've made announcements over the last year or 2. And we've also made a play into U.S. some of the U.S. elite sporting teams over the last 12 months or so as they can use it to image their athletes at the field of play rather than taking them off to a specialized center. Moving to the right is the Argus x-ray camera, world-first high-definition bomb imaging, doesn't need a separate detector. There's a detector build into the main unit. We'll talk about that a little bit later, but it will enables remote standoff imaging, keeping the operator away from the threat and again, saving lives for those IED operators or bomb disposal operators. Moving further to the right, the Checkpoints and Baggage Scanner at the heart of this project is the Baggage Scanner, which is the Micro-X Baggage Scanner. The overall Checkpoint portal project, of which we're the prime contractor, includes some outsourced componentry by the millimeter wave technology, essentially. We'll talk about that a little bit later, and that's underpinned by the significant contract we have with the TSA in the U.S. And finally, to the right is the brain CT the stroke imaging, which enables imaging and diagnostic imaging at the point of care or the point of incident for a stroke patient rather than having that patient need to find their way to a hospital and then into a CT -- into to a standard CT unit. Thanks. Moving through to the highlights from the 2023 financial year, and there have been a few. Of course, we had the leadership transition back in May of this year, not only my own role but also the promotion of Anthony Skeats to Chief Operating Officer and Brian Gonzales to CEO of Americas and Chief Scientific Officer. I couldn't be happier with the contribution that those guys continue to make in leading our... [Technical Difficulty] Okay. Moving to the right. We have $15 million worth of revenue in the 2023 year, which was up some 60-odd, 67% from the prior year. $3.8 million in product sales was broadly consistent with the prior year. Significant increase in our contracted engineering services, which is essentially the contracts with the TSA, the Medical Research Future Fund and their activity. Sorry, I'll just wait for -- you just reformatting that your screen back...

I think, Kingsley, anyone that's watching your presentation can pin the presentation on their own screen to make it bigger.

Okay. I'll keep talking. We also announced throughout 2023, a $15 million strategic collaboration with Varex Imaging, the world's largest x-ray tube manufacturer that involved $7.5 million equity contribution to Micro-X. And in addition to that, the $7.5 million technology transfer collaboration agreement where we will transfer the technology required for them to manufacture multi-beam carbon nanotube-based x-ray tubes. We announced towards the end of the year a $21 million or up to a $21 million contract extension with the Department of Homeland Security to further extend the Airport Checkpoint project, and I'll talk to that a little bit later. We announced some -- a significant reduction in our cost base. We took $2 million out of -- in annual savings out of our overhead costs in May of this year. And in addition to that, as a result of increasing our contract revenues and reassessing and recalibrating our development activities, we've significantly increased the proportion of our development costs, which are funded by external sources. And as a result, not needed to be funded by our own cash. We -- from the brain CT project, we presented a full-scale stroke-imaging model to Parliament House in Canberra in Australia. We announced the successful Argus field test that David mentioned earlier, where we took images of 2 potential bomb threats viewed from 1.5 kilometers away. We presented our first Argus customer demonstration in the U.S. We're doing another one right now, in fact, in Orlando, Florida. And we delivered the first Rover Plus military sale to the Australian Defense Force under JP2060. That was through South Australia, and we will be delivering the remaining units in the next week. I think they're due to leave our factory in the middle of next week. So all in all, fantastic year underpinned by great development and some really strong milestones. Thank you, Beck. In terms of 2024, we've kicked off the year really strongly. Our first quarter sales and orders were just shy of $3 million, $2.9 million. That compares quite strongly to, as I said previously, $3.8 million for last financial year. We announced $1.5 million for the Ukraine military assistance package, and we delivered the first units for JP2060 to SAR. We achieved in November of this year or late October of this year CE Mark Certification for the Rover Plus, which now -- and it's -- we're now approved to sell in all key global markets, the U.S. and right through Europe. And as I mentioned in the strategy presentation back in August, one of the key platforms for this year is to convert a large part of our $6 million worth of Mobile DR inventory that we held at the end of the year -- at the end of 2023, and we're well down the path of achieving that strategic objective also. From an Argus perspective, we've had multiple customer engagements. We continue to build interest in our customer pipeline. We've got a team in Orlando, Florida right now, demonstrating Argus at an IABTI, which is International Association of Bomb Technical Inspectors, Orlando, Florida. That's gone really, really well. The feedback from the people that have seen it so far, which includes bomb squads, police squads, fire squads, the FBI is that they find the unit really easy to learn, how to use. It's a one-touch imaging system. They're understanding how you would use it under different use scenarios. The images, they've been quite complementary about the images. We couldn't have asked for more. It's the best demonstration that we've done to date. And we continue to booking individual demonstrations, which will take place over the coming weeks and months. So we're very happy with how Argus has been received this week. To the right of the page, we announced in July of this year the extension to the DHS contract of $21 million -- up to $21 million. We've delivered the first prototype of the Baggage Scanner, which is currently in Seattle, awaiting testing by the TSA. We also received a couple of weeks ago a small additional contract extension, which will assist us in developing the software and algorithms that will go into that Baggage Scanner. And on the brain CT front, we took our first images with the new mini tube, which, as I mentioned earlier, 0.5 kilograms and an unbelievable piece of engineering. We've now manufactured a number of those tubes, and we will continue to manufacture more with prototypes to be delivered to the Australian Stroke Alliance in the early part of 2024. Thank you. Moving through the product portfolio. I think everyone is aware of our Mobile DR, the Rover Plus, those images that you can see there on the screen. Top left is the Rover Plus on a professional baseball field in the U.S. One of the customers that we sold that unit to. The unit on the right -- or the picture on the right, sorry, is actually the Rover being used in the Ukraine at the point of care and point of need. And the picture at the bottom is how the Rover would be used in normal clinical hospital situation. It has significant advantages. It's smaller, it's lighter, it's easier to use. Radiologists love it. They're working with their hands above their head for a lot of the day. And with the tube being so significantly lighter than a standard tube, the surrounding infrastructure is also lighter and that unit weighs about 95 kilograms when compared to some of the larger units with similar performance at 400 to 500 kilograms. We are commercializing and selling that unit through 2 major U.S. distributors, Medlink and MXR Imaging, as I mentioned earlier. We've got a growing number of dealers and distributors now being signed up across Europe and the EMEA and APAC. One of the other things that we talked about in my strategy presentation earlier this year was our desire to commercialize the core imaging chain outside of the Rover. We've had some very promising discussions in that regard as well of recent times. As I mentioned, we now have access in all key markets. And the product has demonstrated capability that we've got over 350 of them in use now across 35 countries. We've sold it to the Australian Defense Force. We've got multiple units now. I think it's about 28 units in circulation, in the Ukraine, taking images at the very front line. The feedback from the clinicians and the physicians that use it under those circumstances has been fantastic and very, very positive. Thank you. Moving to the Argus, which has been -- had some very exciting developments this year. The completion of the unit some time ago now or recent time was fantastic. Anthony Skeats, who's our Chief Operating Officer, is currently in Orlando, Florida attending the IABTI event that I talked about earlier, and the feedback has been fantastic. The unit has unique advantages. We've talked about them before. But just to give everyone a summary of it, it's the only remote -- remotely deployable unit in the world that will take backscatter images that can be viewed from quite some distance away. As you can see there in the top right-hand corner, the images are quite strong like they are viewed on a separate tablet. And that tablet is wirelessly connected to the Argus -- I beg your pardon, sorry, I've lost that deck. Thank you. The other thing that's included in the Argus and...

My apologies. Sorry, Kingsley, we're just having a few technological issues.

That's okay. That's okay. One of the points it's often left which we should make is that the Argus also includes 160,000-volt generator, which is manufactured in-house at Micro-X. So that main box that you see there in the top left-hand corner picture is probably 45-odd centimeters tall and 40 wide. It's slightly larger than a big serial box. And within that unit is the x-ray tube, 160,000 volt generator and an internal detector, which receives the backscatter image from a subject matter. It's an engineering feat. And now that it's moving into manufacturing, it's fantastic. In terms of our final steps to launch, we've commenced our customer demonstrations. They will ramp up in the very near future, and we look forward to announcing commercial success with the Argus as soon as we can. Thank you. [Presentation]

Yes. It really is a fantastic product. They're all of our staff, obviously, both from the sales and commercial team and also the engineering and scientific teams. It's a wonderful product. Moving on to Checkpoints, which is -- initially, we had 2 contracts, the Checkpoints. One was -- both from the TSA. One was to develop the actual Baggage Scanner, which is at the heart of the Checkpoint portal. And the second project was as prime contractor for the overall design of the Checkpoint portal, which is what you see there on the top left of that slide. It's faster, it's safer. It's an unbelievably scalable and very cost effective. For all of us who travel, we can all understand how it feels when you're standing in the line when you get through security. It's the future of travel. It also has applications outside of airports, obviously. The Baggage Scanner itself can form security at any area where there's passenger throughput, whether that be in high-rise buildings, it's sports stadiums, concert venues, shopping centers, we think the opportunities there are quite significant. As I mentioned, the total funding from the DHS is up to $28 million. Our Checkpoint design has been accepted. We'll talk in -- on the next slide, we'll talk about the stages in that next project. But the Baggage Scanner design is accepted also, and the prototype has been completed, first prototype delivered to Seattle. On top of the great benefits that our solution offers the traveler, it's a compelling value proposition. The TSA operate 2,200 lanes across 400-odd airports in the U.S. The total staffing costs for the TSA operators on those security gates is about $4 billion annually. We modeled that the potential to save the TSA $10 billion over 10 years of operation. And the market size globally just in airports is $24 billion. So it's a fantastic opportunity, not only for future travelers, but also for investment. Just working across briefly the DHS Checkpoints project. You can see the 2 circles on the left, which are green, are things that have already occurred. So the critical design review gate was passed in June of this year. About 1 month after that, up to $21 million contract extension was awarded to us by the TSA. That $21 million if it runs to the full distance will be 40 months. Across the first 18 months, we will build an initial prototype of the Checkpoint portal. There's $7.25 million committed from the DHS across that 18-month period. And that will be a fully integrated self-screening Checkpoint station. Over the following 22 months, and there's some overlap between those 2 periods. But over the following 22 months, there's a number of additional milestones. But at the end of it, we will have completed a full 6 station Checkpoint portal, which will be tested in TSA laboratories and then in the U.S. airport with travel and passengers. So there's really exciting times to head over the next 3 or so years with regards to that project. Thanks, Rebecca. And then finally, brian CT. I mean it's a fantastic development. It brings stroke diagnosis to the point of impact. It's a 70-kilogram unit. It's designed to fit in the back of an ambulance, in a helicopter. It will take an 8-second scan to give 3D imaging, which will get down to 0.5 milliliter of blood, which is the current diagnostic requirement. The majority, 85% of strokes clots and they can be treated quite effectively by clot busting drug, TPA. However, the clinicians won't administer that drug and [indiscernible] and rule out a bleed. Current requirement is to get to a hospital, which can take quite some time in whether it be metropolitan or in regional parts of the world. You then have a CT taken in our solution and ambulance would get to the patient, the patient would be laid in the bed there in the back of the ambulance. That arc that you see in the top left hand corner has 21 of our minitubes in it. Those tubes will be fired almost instantaneously and very quick succession. It will end up taking 63 images. Those images through the software reconstruction will be reconstructed into a 3-dimensional image of the brain. That image could be transmitted wirelessly to the neurologist who will read the image rule out of bleed and you can have your TPA administered in the back of the ambulance. The time is brain, as they say in stroke. And the earlier that you can get TPA administered, a much better rehabilitation and remediation opportunities. Not only is it great for the patient but also there's a significant reduction to the health care costs to the community and society. There are a number of mobile stroke units around the world at the moment. The research coming back from them has been phenomenally successful. Problem being no one can do it as small as us, and what is currently in use around the world are full-sized CT units in the back of a van. They're very expensive. And with our unit, we think we can make it significantly cheaper, which will enable a greater uptake and greater, again, life saving around the world. Thank you. Just refreshing on the strategy that we presented in August, it's really 6 platforms. The first one is, increase the commercial skills of the organization, and we are now much more commercially driven, as I mentioned earlier. We now talk commercially around every decision that's made. We prioritize commercial outcomes in all of our decision-making, and we're building a business above just the technology. That's over -- the overarching theme to our strategy. Secondly, we think we need to sweat the asset and leverage our technology. We've built enormous value in our IP and our technology, and it doesn't necessarily only need to be monetized through selling one of our products. We think there's more opportunities to sell our technology outside of our products. Thirdly, targeting larger and less competitive markets when we think about the movement into Argus, then into Checkpoints and then into Brain CT. Those markets sequentially are less competitive and significantly larger from an addressable market perspective, increasing margins and potential profitability. Four, we have derisked the business. We reduced the cost base, and we now have a much higher proportion of funded development costs and unfunded development costs further reducing our cash burn. Our fifth point, which is extremely important when we think about the brain CT and the Checkpoints project is commercializing through effective partnerships. We see moving forward the opportunity to partner with the right partners, commercialize our products quicker with less risk, and we think the opportunities to commercialize successfully will be greater by choosing the right partnerships moving forward. And then six, creating recurring revenue streams. Whilst historically, we've been a hardware business, as our imaging -- as imaging becomes more significant and it involves and improves, we think we should be able to earn additional fees from that moving forward and create recurring revenue streams from upgrading software reconstruction and imaging. Thank you, Beck. I mentioned our partners, the 3 major partners that I talked to here, TSA, which is up to $28 million worth of funding overall. The initial $7.25 million plus the $21 million extension, which is the Checkpoints project. Brain CT received $8 million contract from our partner, ASA, Australian Stroke Alliance, which is funded by the Medical Research Future Fund. And then thirdly, Varex Imaging, where our licensing partner made an equity investment in us last year. And also, we had a $7.5 million collaboration agreement to transfer technology associated with multibeam CNT emitters, not the single beam ones that our products are planned to use. Sorry, Beck. I've just lost that. So I've just lost that deck but I can talk to the slide. This slide essentially shows where the revenue commences for each of those 4 products that I just talked through. Rover, we're already in market. The main milestone there is we've just received CE Mark, which means we're now open for sale in Europe, and we are signing up dealers and distributors throughout Europe. We anticipate selling there in the very near future. Argus is in its very, very final stages now of compliance testing. As I said, we've demonstrated now a number of times this week in particular, and we will be in the market very, very soon. The third product being Checkpoints. There are essentially 2 commercial opportunities here. The first one is the Baggage Scanner itself, which we would anticipate bring in market in 2025. The second opportunity, which is the broader Checkpoint portal, which is the self-service Checkpoint portal inclusive of millimeter wave and -- millimeter wave and baggage scanning will be later. I think while it's fantastic to be developing with a customer like the TSA, I think that secondary opportunity will be adding to 2026, '27. And then the brain scanner, we're due to be delivering a prototype to the Hospital and the Adelaide Hospital in the first part of 2024, and we would see that entering revenue market in 2026 or so. So some great opportunities over the next 2 to 3 years. Thank you, Beck. Just to recap on the corporates and the financials. We have $15 million of revenue in 2023. We have $13 million of contracted revenues for 2024 in addition to our sales revenue, which, as I mentioned earlier, was just under $3 million for the first quarter. We're also very well down the track of converting that $6 million of inventory that we held at June into cash. We've share price at close of business yesterday at $0.12, gives us a market cap of about $62 million, a very strong institutional shareholders account for just over 40% of the business. Our Board has 5 and the retail community has just over 50%. Thank you. In summary, we are creating revolutionary imaging to better lives. We have world-class technology, a fantastic and very scalable facility in Adelaide with very high-quality technical and software teams, both in Adelaide and in Seattle. Partnerships will be very important to us moving forward, both industry partnerships and strategic partnerships. I thought they will be a part of the way we commercialize our products in the future. Growing revenue and raising our commercial performance to match that outstanding performance of our engineering and development teams is crucial. It is the highest priority for me. And lastly, we have enormous opportunities in front of us in the short term. We have milestones that we will make. It's going to be an exciting year ahead, and I look forward to leading our very talented staff on that journey. In summary, on behalf of the leadership team and all of our staff, I would like to echo David's words of appreciation for your ongoing support of Micro-X and also my and our appreciation for the great work that Peter put into building this company to get it to where it is today. I can assure you we will continue to work hard to achieve our strategic objectives, drive commercial outcomes and meet our contract milestones. Most of all, we are committed to growing value for you, our shareholders. Thank you very much.

Thank you, Kingsley. For those shareholders who are attending remotely today, the presentation will be made available on the website, if you are not able to see all of it. Thank you, David.

We'll now proceed with the 4 matters for today. The purpose of this meeting is set out in the notice of meeting and the addendum, both of which were dispatched to shareholders. Unless there are any objections, I will take the notice of meeting and addendum as having been read. There are 12 items of business for today, as detailed on the slide, you should now be seeing, and we will present on the individual slides the proxies received for each. 11 of the resolutions require formal approval. The first item is to receive and consider the financial accounts and the reports of directors and auditors for the financial year end of June 2023. It's not a requirement that shareholders vote in relation to the accounts. However, we're pleased to answer any questions relating to them and any other matter you would like to raise at this moment, as I mentioned. And we have Andrew Tickle from BDO with us in the room. If any shareholder have any questions or comments, if you do, please submit them via Zoom or through the roving microphone in person. There will also be an option for general questions at the end of our formal business. Does anyone have any questions? We have one in the room, which is great. Thank you.

[indiscernible] directors and shareholders [indiscernible] other shareholders because the share price has fallen, I suspect partly because the number of shares issued exceeds the market [indiscernible].

So obviously, as I said in my presentation, as Chair and as a Director of the company and having listened to Kingsley there, I think you'll all agree that the company appears to be undervalued for the prospects in front of us. That's -- is, I think, a matter of, in my view, fact. And it's one of the real reasons why we have to tell our story much better, while we have to encourage other shareholders to join and support the share price. Clearly, at the current situation, we believe the company is undervalued. You're absolutely right. To the matter of directors accepting shares, of course, the advantage of that, especially in a growing company, is its directors don't therefore receive cash. So effectively, we reduce the cash strain on the company, which is very important as you grow a company. So not all directors take the opportunity just to take their remuneration in shares with some of the directors do.

[indiscernible]

It has a very minor dilutionary effect. I think it's less than 0.3%. That's very minor.

[indiscernible]

Yes, you do, you do.

[indiscernible]

No, no. They're just -- yes, just instead of receiving remuneration every quarter, you take the average share price for the quarter and you issue shares at that share price. So they're not -- it's not an exercise. We're effectively just instead of receiving cash, you receive stock. And of course, that's a great strategy if the share price rises for the directors, but it falls [indiscernible] strategy, but it saves the company cash.

David, I've got another question that's been submitted online. It's in a similar vein. Does the Board expect to issue new shares to raise cash to support the company's operations in the next 12 months?

So as Kingsley has said, we're doing a huge amount of work in order to reduce our run rate, which we've done and Kingsley has taken $2 million out of the annual run rate is also with the help of the management team increase the amount of revenue that's coming in the door. You've already heard his figures for that, and the amount of -- that leaves the unfunded portion of the company is shrinking over time. So clearly, we will consider all strategic options and all strategies to continue to make sure the company remains strongly funded and have a good balance sheet.

[indiscernible]

Yes, of course. Fire away. You need -- we need a microphone before you do. Just wait for the mic, sorry. Otherwise, shareholders who are online can't hear.

Just want to make the comment. There's one thing to buy a share that's not paying any dividend. We accept that. But to buy a share that has declined in value more than half is actually another matter and that's a matter of concern. It should be a matter of concern.

We share your concern, of course, as directors. As I said, the share price is not where we believe the company's true value lies right now. Another shareholder in the room, which is good.

It's Jeff Kemp. What is your expectation that the research and development tax incentive refund and other government grants will continue as the amounts as a share of the revenue is approximately 49%?

Yes. So just to recap those that perhaps don't know. We apply and receive an R&D grant -- R&D rebate every year. It's BDO who have done the work for us for quite a number of years on that. That varies on how much R&D we do each year, and we receive that back from the [indiscernible] That's an important component of our funding, obviously. But it does depend upon you continuing to do R&D -- real R&D. So that's a very important aspect. The other sources of funding, as Kingsley said, have increased. So the money coming in from the TSA, we've significantly increased that with the contract extension and the brain scanner also we're hitting the milestones and therefore, the funding is coming in for that. So that's a very positive situation, and we'll continue to work with the TSA, our Transport Safety Agency, to deliver against their milestones, and ultimately, this extraordinary airport security system. Hi, [indiscernible], Just microphone, you need a mic, sorry. I know it's [ tempting. ]

With respect revenue is not profit. So -- and we can only go on the figures as of June 30, and there was a decrease in cash on hand of $5 million. And at June 30, there was $5 million cash at hand. So the company is actually probably -- well, I'm concerned about there's only $5 million that might -- I've got a question here, but it was -- is that a timing issue? And if not, it's concerning.

Yes, that obviously was before we got the R&D rebate. So there is always timing issues. But yes, the company right now is not cash flow positive. So yes, we have to create a cash flow positive company over the coming years. You do that, obviously, by successfully developing and marketing your products. And our first cab of the rank is Rover and the second cab is Argus. James?

You've obviously got 4 -- you've created 4 unbelievable leading-edge products, but they're obviously going to commercialize at different stages. Is there a concern that with the size of the company, you can cope with all 4? As you get bigger and bigger and you get to the full commercialization of 1 or 2, the Rover and et cetera, how do you then keep going with when you still got 2 or 3 years left of your compliance stuff for the next slot?

Yes. You are, of course, right. It is important that you have a laser-like focus on products that are coming to market. So obviously, I think there's a couple of things that Kingsley and his team have been doing. They've had a real focus on getting Rover and getting the CE Mark up. That's very important. The second thing is there's been an enormous effort, successful effort in getting Argus now down to wait and in the market for sale. And that is happening right now in Orlando. That's a big important milestone for us. So those are really important focus areas. The other two are on a longer time frame. If there's a third product that can be brought to market, it will be the Baggage Scanner independently. So that's going to be very exciting. But it is important. You're quite right to have a laser-like focus on making sure we deliver the next product, and it's done really well.

Would you continue to [indiscernible] potentially a joint venture or selling your technology to [indiscernible] at a price?

we have done that to Varex. So when Peter was still leading, Peter did a deal with Varex to do multibeam technology, which was technology we weren't developing. And that, of course, was very successful, and we're hitting the milestones with Varex right now. So that's been another funding opportunity. Varex is also really strategically important. They're the largest component manufacturer in the world for x-ray equip. So to have them as a partner, gives us access to one of the really big players. And we have Andrew on the Board, who is an extremely senior member of the Varex team. So we are very fortunate to have Varex as our partner. And as I say, our technical team is working with Varex to deliver the multibeam and that's going very well. The other thing just to say on this whole thing is that, as we showed right in the Kingsley's first side, the core technology is constant between all of the products.

And is there any competition?

You have microphone, sorry, sorry. We're in the room again. Microphone is passing around.

Yes. I wanted to ask, we haven't heard anything of competition.

So I'll ask Kingsley to answer that. Kingsley, are you -- can you answer that?

Yes. Can I have the question, please?

Competition, Kingsley. How is -- where is the competition going from, I think, the shareholder would like to know. Is that correct? Yes, yes.

Yes. So I think the best way to answer that is that the unique thing about our technology is that the portability that our tubes enable our applications to have it's much, much smaller. There isn't anybody else that's commercialized carbon nanotube x-rays the way that we have. So when you think about the types of products, if you look at the next 3 products, the Argus, the Checkpoint and then the brain CT, the thing that makes each one of those products unique is the fact that the tube so small and the product is so small. So for example, stroke CT scanner fits in the back of an ambulance. It's 70 kilograms as opposed to a full-scale CT. When you think about the Checkpoints, we fit 7 of our portals into the same space of an ordinary x-ray line at an airport and the Argus at [ 79 ] kilograms contains a tube, a generator and a detector. So the competition at this stage is quite limited. We need to make hay while the sun shines. We've got -- we know that we've got a head start, but we're not arrogant to the point where we don't think someone else is going to at some point be able to replicate what we do. So we need to get out in front and commercialize before they catch up.

Thank you. Are there any more questions? If there are any questions online? Yes, [indiscernible] let's have them.

David, we've got another question from a shareholder online, who is saying that Kingsley's Refreshed Strategy highlights the focus on ROI. Why hasn't the Board been focused on ROI in the past?

Well, I think the Board has been -- Micro-X and [indiscernible] of Peter has been really focused on making sure that we deliver a high-quality technological products that really serve the market. And that's been the focus. And we've got to this point, as you say, with 4 outstanding product lines. And now our focus, having got to that point, under Peter's leadership, our focus is now turning to how do we monetize these 4 products.

And on that, there's another question. Can you talk about your tech road map for nanotube? How small and light can you make the next generation of Rovers or other new applications?

So I'll turn to Kingsley on that, but I think a large amount of that answer is on Kingsley's slide where he shows the size of the tubes.

Yes, that's right, David. I mean, the first incarnation of our Rover tube was about 2.5 kilograms. It's now closer to 2. The minitube is 0.5 kilogram. I mean that's really -- so it's about the size of 2 golf balls. It fits very snugly in your hand. I've no doubt that as things progress, we'll make it smaller, but it's -- our tubes are already incredibly small relative to competition. But look -- and I think from a development perspective, we've got a lot going on, but the guys are always thinking about how we can do things better.

We've had some further questions about EMvision as well. I'll combine the questions because they're quite similar. Can you outline Micro-X's advantages over EMvision's scanner that is also lightweight?

I'll have to pass that to Kingsley. I don't know about EMvision's scanner.

Yes. So they're actually different technologies. I mean, our technology is actually designed to -- our technology is designed rather than to assess whether or not you had a stroke. Our technology is designed to tell you what type of stroke you've had and to rule out a bleed so that the clinician can administer TPA. I'm not aware if the EMvision product does that.

Thank you. That's all the questions for now. We've got some more general ones that we can address further on in the presentation.

Thank you. Are there any other questions in the room before I move? We'll get an opportunity to ask more questions at the end, if that's okay. But if there's not any more, I'll move on. So I'll move to the formal resolutions that need to be considered. The proxies received in relation to the formal resolutions are set out in the following slides. So the first item requiring a resolution is the adoption of the remuneration report forming part of the directors' report for the financial year ending 30th of June 2023. I move that the remuneration report be adopted on the basis set out in the notice of weeks. Rebecca, does any shareholder have any questions or comments.

No, David.

The next item of business is the reelection of Mr. Patrick O'Brien as the Director of the company. I move that Mr. Patrick O'Brien being a Director who retires pursuant to the constitution of the company and being eligible for reelection, offers himself for reelection and is hereby reelected as a Director of the company. Rebecca, does any shareholder have any questions or comments?

No, David.

Thank you. Turning to Resolution 3. The next item of business is the reelection of Mr. Andrew Hartmann as a Director of the company. I move that Mr. Andrew Hartmann being a Director, who was appointed by the company's directors on the 15th of December 2022 pursuant to the constitution of the company and being eligible for reelection, offers himself for reelection is hereby reelected as a Director of the company. Do we have any questions, Rebecca?

No, David.

I'm going to now hand over to Kingsley to act as the Chair of the meetings for Resolutions 4 and 5 because they concern me.

Thank you, David. Thank you. The next item of business is the reelection of Mr. David Knox as a Director of the company. I move that Mr. David Knox being a Director, who retires pursuant to the constitution of the company and being eligible for reelection, offers himself for reelection is hereby reelected as a Director of the company. Rebecca, does any shareholder have any questions or comments?

No, Kingsley.

Thank you. Since there are no further questions, the next item of business is the approval of the issue of shares to Mr. David Knox in lieu of cash payments for his directors' fees. I move that pursuant to and in accordance with ASX Listing Rule 10.11 and for all other purposes and conditional on Resolution 4 being approved in accordance with its terms, shareholders approve the issue of up to 1,009,090 shares to Mr. David Knox or his nominee on the terms and conditions set out in the explanatory statement accompanying this notice of annual general meeting. Does any shareholder have any questions or comments?

No, Kingsley.

Thank you, Rebecca. Since there are no further questions, I'll now hand back to David to Chair the remainder of the meeting.

Thank you, Kingsley. The next item of business is the approval of the issue of shares to Mr. James McDowell in lieu of cash payments for his directors' fees. I move that pursuant to and in accordance with the ASX Listing Rule 10.11 and for all other purposes, shareholders approve the issue of up to 655,910 shares to Mr. James McDowell on the terms and conditions set out in the explanatory statement accompanying this annual -- this notice of annual general meeting. Are there any questions?

No, David.

If not, Resolution 7. 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. I move that pursuant and in accordance with ASX Listing Rule 10.11 and for all other purposes, shareholders approve the issue of up to 655,910 shares to Mr. Patrick O'Brien on the terms and conditions set out in the explanatory statement accompanying this notice of annual general meeting. Are there any questions?

No, there are not.

The next item of business is the approval of the issue of shares to Mr. Alexander Gosling in lieu of cash payments for his directors' fees. I move the pursuant and in accordance with ASX Listing Rule 10.11 and for all other purposes, shareholders approve the issue of up to 655,910 shares to Mr. Alexander Gosling on the terms and conditions set out in the explanatory statement accompanying this notice of annual general meeting. Are there any questions?

There are not.

The next item of business is the approval of the issue of shares to Mr. Ilona Meyer in lieu of cash payments for directors' fees. I move that pursuant to in accordance with ASX Listing 10.11 and for all other purposes, shareholders approve the issue of up to 655,910 shares to Mr. Ilona Meyer on the terms and conditions set out in the explanatory statement accompanying this notice of the annual general Meeting. Has any shareholder of any questions?

No.

If not, I'll move to Resolution 10. The next item of business is the approval of the employee incentive plan. I move that for the purpose of ASX Listing Rule 7.2 and for all other purposes, shareholders approve the employee equity plan and employee gift plan, together with the employee incentive plan and the grant of incentive securities and the issue of underlying securities under the employee incentive plan on the terms and conditions set out in the explanatory statement. Are there any questions? There is a question in the room.

I'm old enough to think that using employment incentive schemes is a relatively new innovation that came from the states. It seems odd that you pay someone a salary to do a job and then you'll give them an incentive to do that job. I am in favor, however, in fact, of employees being considered should a dividend be paid to shareholders, but I'm unconvinced of the value or indeed the need for an employment incentive scheme.

Thank you. I can take that as a comment, but I will respond. The market for the type of people that Micro-X needs to develop this extraordinary technology then to market it globally requires us to absolutely attract the very best talent. Now we're sitting here in Flinders University. A number of our staff have come from this university. And the reason we're able to attract them is not just the proximity of the company, not just the culture of the company or its purpose, they're all extremely important. You will not attract a single graduate unless you have a really good purpose. But also the fact they know they are going to be rewarded along with shareholders on the success of this company. It is a tough road we've developed a small company like this to build the technology. And I believe that the way we incentivize the employees, it is an incentive, it's not base pay. It is at risk the way we incentivize employees is reasonable. It's fair and it aligns them to shareholders and it aligns them in, ties them in to the success of this company. And I think that is appropriate.

[indiscernible]

The corner of the room is also a corporate norm. It has become a corporate norm, but I still think you have to really look harder yourself and justify it. And I think we can, and we do for the state of the company. The other thing I really like about Micro-X and Peter led this philosophy and things he is following it is it's shared with all employees. So it's not the executive. It's not certainly not just a senior member of staff who are aligned, all employees participate in these plans. And therefore, all boats rise on the company's success, and I think that's appropriate. And we will continue to strive to attract the very best brands that we can into the company. Any other questions? Good question, though. Thank you for it. Any other questions?

No, David.

So I'll now turn to Item 11 -- Resolution 11. So the next item of business is approval of the adoption of the proposed constitution. I move that for the purposes of Section 136 of the Corporations Act and for all other purposes, the constitution of the company be repealed and replaced with the proposed constitution in the form annex of this notice, the effect on and from the date that this resolution is passed. Is there any shareholder of any questions or comments?

No, David.

The final resolution, Resolution 12, is the appointment of auditors. I move that for the purposes of section 327B of the Corporations Act and for all other purposes, approval is given for the appointment of BDO Audit Pty Ltd as auditor of the company. Rebecca, does any shareholder have any questions or comments on this resolution?

There's a question from the floor here, David.

We have a question from the floor.

I guess it's a matter for why did you change auditors? Is it a question of financing or they're cheaper or what have you all?

No, no. No, you don't choose your auditors on price. That's the first thing. The reason is Grant Thornton were our auditors from pre-IPO. And there comes a point where it's the right thing to do to change your auditors. Fresh eyes, new approach, new challenges for management and the Board, and that is appropriate. And all good companies do change auditors from time to time, and that's what's happened with us. So we welcome BDO, welcome Andrew as our new auditors. And thank you for shareholders support for that change as well. Are there any other questions? Now is a good moment.

We have got some additional ones that have been submitted from shareholders online. How many completed Argus units do we have ready to go to meet the much-wanted demand and what quality of completed units do you expect to be able to build each month?

I'll pass that to Kingsley.

Yes. Thank you, David. There are a number of units currently in circulation, both within our facility at Tonsley and being demonstrated to customers. In terms of our capacity, our facility is quite scalable. I'd like to think that demand will outstrip our ability to build them. But we manufacture the tube, we manufacture the generator. We're buying the detector and the actual construction process once you have those raw materials is not significant. So we're very confident that we'll be able to make demand in the short to medium term. And we bought -- I must say -- we bought -- in anticipation of the completion of the project, we bought a lot of the long lead time items over the past probably 6 to 7 months.

Kingsley, can you also please expand a little on the possibility of software as a source of revenue?

Yes. So I think one of the -- moving forward, imaging reconstruction and the imaging process will change over time, it will improve. And I think that as it improves, the hardware doesn't necessarily need to change. But I think as the software reconstruction and the imaging capabilities improve, whether it be Varex subscription model or whether it be by [indiscernible] updates, that's a service that we look forward to providing. I mean we've got a tremendous in-house software team. And it's high margin, and you don't necessarily need to change the hardware to improve the product.

Given the approximate commercial release dates for the Checkpoint Baggage Scanner and portable CT scanner being several years away, does the Board feel that sales of Argus and Rover units will be sufficient for the company to stand on its own 2 feet financially in the near future?

Kingsley?

Yes. Thank you, David. Look -- the revenues from Checkpoints and brain CT as completed products are 2 to 3 years away. As we've said recently and for some time, Argus is a high-margin product, higher margin than Rover. We have reduced our unfunded development costs. The development costs associated with our in-house generator and with Argus are now largely complete. So we will have sales revenues from Rover and from Argus. And in addition to that, we continue to see additional funding of nondilutive nature. So in not dissimilar ways to the Varex transaction, we will look to monetize our technology across a range of products, not necessarily just the 2 that we are on.

I think my only additional comment to that is both the brain CT and the airport checkpoints are funded programs.

Yes.

Micro-X tubes are smaller/lower power than competitors, but Rover is a similar size and form factor as competitors. Why isn't Rover smaller and lighter or has a different form factor to allow it to be used in different environments that competitors currently can't compete on?

Well, it's made for that reason. The genesis of the Rover project was an initial development contract with the Australian Defense Force to create a product that could work in a deployable military hospital. And in fact, we saw -- a couple of years ago now, we were successful in the tender for JP2060, which is to supply mobile x-rays into deployable medical hospitals because the Rover at 95 kilograms is significantly that if you run on a battery charge [indiscernible] is significantly more appropriate in nontraditional circumstances and environments than the competitor set. And it's exactly why it was created and it's materially lighter than that competitor set.

In a similar question, is there any discussion of getting the Micro-X tube into conventional in-room x-ray machines to reduce the weight of the ceiling suspension requirements?

Of course, that's the competitive advantage of our Micro-X kit.

Yes. If it's lighter and can do everything that the heavier unit can do, it's never a disadvantage.

There's also been discussion in the strategy refresh about commercializing Micro-X's unique technology, not just within the Rover cart, but also through the sale of components, such as the generators. Have any activities begun in this regard?

Kingsley?

Yes. Thank you, David. Part of our ordinary course of business now as we focus commercially like we do is to talk about all of those things. So there's a range of conversations going on at any time. And we've entered into small at this point, development contracts and early stage agreements to do work for people in both the tube and generator space.

But obviously, the first one of that is our deal with Varex for multibeam tubes.

Yes.

That's the first example [indiscernible].

That brings an end to all the questions.

Thank you very much. We have voted on all the resolutions. So the formal business of the meeting is coming into a close. In a couple of minutes, I'll close the voting system. Please ensure that you've cast your vote on all resolutions. For holders in the room, please place your voting cards in the ballot box circulating in the room. Please ensure it is signed in order for it to be counted. I'll now pause for 2 minutes to allow time for finalizing the vote and we have a short presentation. [Presentation] [Voting]

I declare that voting by poll is now closed. That concludes the formal business to be dealt with today. The results of the votes will be released to the ASX later today. For those attending today's Annual General Meeting in-person, I invite you to now move to the Micro-X building to tour the facility and meet some of our highly qualified staff. I thank you for attending both in the room and online, and I declare the meeting closed.