Tern Plc (TERN.L) Earnings Call Transcript & Summary

Well, good evening, everybody. If you can just bear with us a few moments while everybody joins that would be much appreciated. We've got quite a lot of attendees this evening, and it does take the Zoom system a minute or so for everybody to join. But as soon as the attendee list slows down, I'll get things underway. You see we've still got people joining. So if you can just bear with us a few moments longer, that would be much appreciated. Well, good evening. My name is Tim Metcalfe, Managing Director of IFC Advisory, which is Tern's Financial PR and Investor Relations Adviser. With me today, I've got Ian Ritchie and Albert Sisto from Tern; and Darron Antill and Alastair Williamson from [indiscernible] Tern's portfolio companies, Device Authority and Wyld Networks. We're also going to have presentations from Jo Halliday of Talking Medicines; and Richard Vincent of FundamentalVR. Unfortunately, both Jo and Richard are traveling on business this evening so they've kindly recorded their presentations as they couldn't join us at this time. So I'll be playing those. Following the 4 presentations, we'll have the opportunity for a question-and-answer session. I know many people have got questions they want answered. And I'd like to thank those who sent questions and observations in advance. But if you do have anything during sessions, please use your Q&A button at the bottom of the screen, type in what you want to be answered, and we will endeavor to answer those questions at the end of the presentations. So without further ado, we'll start the presentations. The first one is going to be a recording from Jo Halliday of Talking Medicines. So if you can bear with me with the technology, I will.

Good afternoon. I'm Jo Halliday, CEO of Talking Medicines, and I'm delighted to be here to give you an update of our Capital Markets Day on all that's been happening at Talking Medicines. I can give you a recap of our positioning, give you some sense of an update as to where we are from a business perspective and our outlook going forward. So Talking Medicines is an advanced data science company. We use AI to unlock intelligence, that's information about how patients and how health care professionals speak about their medicines. So we believe we can revolutionize the health care sector with a different kind of intelligence. The problem that we solve in the market is that pharmaceutical companies, the people that create the medicines have more prescriptions written than pills taken. So commercially, that means that the cost of poor adherence, and adherence is when people don't stick to the medicine as they've been prescribed, is a whacking big GBP 250 billion. About half of people don't take medicines as prescribed. So it's a huge problem, both commercially, as I've just talked about, but also from a societal impact on health. So there's a big problem about people taking their medicine. As I said, more prescriptions written than pills taken. And what the pharmaceutical companies do is they spend sizable chunk, GBP 30 billion, on marketing to address that gap to be able to talk to customers about their medicines, why they should be taking them, what the benefits of them are. Now pharmaceutical companies and their agencies can access heaps, absolutely heaps of unstructured data about patients and doctors, but they don't have the systems to decode it. And part of the problem is that patients and health care professional speak different languages. Doctors will speak in latin, and patients will speak what they see as normal language. So the two don't even come together. So being able to decode the clues about why people do and don't take their medicines, both from a patient and a health care professional perspective, is absolutely critical to addressing the commercial problem opportunity that I've outlined. For us, we can increase that productivity of finding the insight. So the insight is like a needle in a haystack, and we can lift that productivity by 80% using data science and advanced artificial intelligence. In the old world, advertising agencies on behalf of their pharmaceutical clients will be manually trawling through spreadsheets, filling in complex queries to try and extract intelligence from lots and lots of different sources, whether that's social media, whether that's research, transcripts. So they're trying to paint a picture, which is very costly and timely to pull. In the new world, with Talking Medicines, we're using AI and data science to deliver the answers to the questions on what they want to know. And those answers are at their fingertips. So it's transformational technology and access to health care intelligence. In terms of the old world, where would that intelligence have come from. So health professionals have been the bedrock of feedback. But as you can imagine, talking to one or two health professionals can be fairly biased. It's still part of the makeup of the feedback, but it can be unleashed in terms of the amount of health professionals that can be accessed through using AI. Focus groups have always been used by the industry that can be very limited in scope, very difficult to recruit the right people for the focus groups, so they can be quite limited in their nature. In-depth interviews are very, very good in terms of the insight that can be gained, but can be very, very expensive to run. And traditional social listening tools are broad based. They're not sector specific. So it's very difficult for them to be able to unlock the nuances of health care. We use this example a lot. Heather is a plant, it's a girls name, a medicine, which one am I listening to using a broad-based social listening tool. So without the AI classifiers trained to the patient and the [ HGP ], it's very, very difficult for that to unlock the same kind of quality insight that we can through our AI. And a lot of what we're talking about here is how to take away the bias and how to take away the noise from the absolutely invaluable clues about how people take medicines and why those gaps exist on taking them. Our solution, so our solution uses advanced data science and AI to basically access the conversational data and the insights within them. We call our solution DrugGPT. I'm going to show you a video in a second, which really brings that to life. And what we're doing is blending many, many sources of information. So they could come from the customers. it could be from research groups, they can come from open and close communities in terms of social media or places that doctors speak to each other or patients speak to each other. So we are very, very good at sourcing data, which will be raw and effectively dirty with lots of noise. We'll pull it through our models to be able to create a solution called DrugGPT, where our clients, the advertising agencies can ask questions of the data. So what I'm going to do here is show you a video to DrugGPT. [Presentation]

So that's giving you a sense of what we're offering to our customer and they're paying a subscription to be able to access their data vault, the data they want to see that's uncleaned and unclassified in DrugGPT. So our advantage is that we are able to bring them this information, this intelligence across drugs and disease areas. Our models are pretrained in-house. So we're not using their data to be able to do that taking long amounts of time. We pretrained our models to health care, and we're able to take that data in. We've got clear cleaning classification and labeling of data, which has come through our training, and we're ready to go. That gives us a competitive position to be the data partner, the AI data partner for agencies and our ability to bring natural language access to the intelligence to be able to ask questions within DrugGPT gives huge advantage in terms of give me the answer, and I see the answer immediately. We don't allow data to seep in or seep out, which is so, so important to our clients in terms of security and the compliance. And it's an important point on our advantage. We didn't just add AI's attack in 2024 because it was a cool thing to do. We have been an AI company for a number of years and our models have been trained properly and intelligently to be able to make the most of what is now a very hot market. In terms of where we sit with our AI, we do on purpose sit at the top of the tree. So we're vertical specialists, which means that our pricing can hold up a higher value than the commodity end of AI, and we're very proud that all of our training and our specialist knowledge and our data science combined with life science means that we can really be the vertical specialist for extracting intelligence from conversational data. I've touched on this during the video and before that we bring data from a number of sources. It tends to be unstructured and broad and messy. We put it through our AI, which includes natural language processing and understanding of linguistics. I talked at the beginning about patients and doctors speaking so differently, and it's delivered through DrugGPT, which you've seen an example of. So we have a proprietary system in terms of the way we process through to delivery of data. What we're doing right now, and we've been doing a lot of in quarter 1, 2024 is really looking at who we can work with to advance our moat, what makes us different and how can we protect that. So one example is our work with Socialgist. Yesterday, we were in New York at an exhibition with Socialgist and DrugGPT to show that we can source open community data. So that's where people talk in open forums. There's thousands, thousands of places that people talk about their medicines and their health care. By working with Socialgist, we're able to bring that data in, we're able to clean and classify it through the AI models, and that can be served up to customers. So customers are trading up to be able to access data with Socialgist. I'm working very closely with them as we've promoted on our social media has been a big, big advantage for customers when they don't have their own data and they want access to that open source data, particularly about patients. The same on close communities. We, again, have published in the domain about how we've worked with [indiscernible] who are an HGP community, where health care professionals speak to each other. That data has huge value in terms of the insights about why and how doctors are prescribing medicines. So we've worked very closely with [indiscernible]. And in an example of this is a white paper that we recently published on GLP-1 medications, which have been very, very topical in the news around weight loss versus diabetes in terms of the use of these medicines. So we've done some great work and we are really advancing our moat around our data sourcing to working with others and being able to offer that to our customers as an add-on. Our go-to-market is a subscription-based model. We're very much targeting the ad agencies who tend to be very, very concentrated in New York, which is a big advantage to us in terms of access to them. We also target health care data communities where they have their own data about patients and physicians that they need the data science to unlock the intelligence. We have had very, very good traction in quarter 1. We're very happy with the traction that is happening. And that's about onboarding new customers but also expanding within our customers are huge players. So there are many, many opportunities once we land within them to be able to expand. So good traction in quarter 1, and we look forward to updating more on that. And we're always looking ahead in terms of where the next adjacencies are. The benefits to agencies are absolutely zero learning curve from a modeling point of view. There's lots and lots of chat about hallucinations from AI. Our GPT sits on curated data. It doesn't need to make up. It only can extract intelligence about what is known. And that, again, is a big advantage. Our data is very clean. Our models are ready to go. There's no sort of learning time needed within client briefs And compliance, ethics and governance have always been so important to Talking Medicines, and we've taken our time to get it right on that front. We clearly differentiate competitors. We're not in clinical data. We're very much in this conversational data, and we're not at the cheaper end of the market in terms of pumping out the kind of commodity AI, and we're not social intelligence and social listening. So we feel that we've got a very clear place within the market that our customers are recognizing. As a team, we are laser focused on delivery, particularly at the commercial plan. We work very closely with Tern. Our [ system ] is our Chairman. And we have a number of advisers around us just to make sure we are absolutely making the most of 2024, where there are so many opportunities opening up around AI and partnership. Winning the AI award in New York that we mentioned in the last update has been a huge accelerator in terms of really breaking us into that network of ad agencies and we continue to publish and we continue to look to our patterns in terms of the moat that we're creating. Yesterday in New York, we were presenting an event. Just an example of how we have been accepted, and [ Elizabeth Fairley ] also, our founder, was speaking on stage about AI and Talking Medicines in front of target customers, the agencies. And that's a huge accolade to be invited to do these kinds of thought leadership, which really help us in terms of customer traction. So really to summarize, we've had a really, really strong start to 2024. We're here in New York a lot. We're very close to our customers. We're very focused on that expansion and that U.S. customer adoption is so critical to the next stage. And we're doing a lot around the marketing and thought leadership to make sure that the word of mouth is as strong as we can make it. Our formula of a team dedicated to purpose for health care intelligence plus our ability to curate and train those models and a unique product delivery is the success that we're seeing. Thank you very much for listening. I hope you have a good evening, and I look forward to updating you again in the future.

Well, thank you very much, Jo, for recording that. Time to move on to Device Authority, and Darron is thankfully with us in person this evening. Darron, I'll hand over to you to run through your presentation.

Thank you. Just checking if you can hear me. .

Can hear you very well.

Fantastic. Okay. Well, welcome, everybody, and I guess, hello again. Many of you have probably seen me present. I've attended a few of these sessions along the way. But good evening to everyone. So I've got, I guess, a quick update on the business. Clearly, we've had some change in the company in relation to new investors, and I wanted to talk about that and the difference that's going to make. But I guess for people who maybe who don't know us as well. Effectively, the team, we're 30 or so strong. We're very much focused on the development side in the U.K. with go-to-market in America. And clearly, in Europe, and we have one outlier because we have a lot of interaction with the India-based organizations that are often part of North American globals who's based in Bangalore. We talked about Device Authority being a U.K. limited company. We launched KSaaS back in end of 2022, that was significant. KSaaS been our cloud platform, and I'll talk about a bit why that's important. And I think along our journey, we've often talked about the value of strategic partners, and that still plays out today, and I've got a high-level update on where we are with that. Building out our product relevance and making sure we're adding new functionality, much of this is really built in terms of our product, that growth strategy being driven by customers who are looking for us to accelerate and advance functionality. And I think in the past, I've talked about automotive, medical and industrial sectors, and they still remain important to us, and now we effectively have 2 more revolving sectors, which I'll touch on around government and actually retail. But in terms of investment, I mean, clearly, we were delighted to get investment at the back end of the year from Ten Eleven. Ten Eleven is a significant cybersecurity specialists in VC, specializing in cybersecurity companies. They have a great track record. They have bought portfolio of cybersecurity companies. And the team, we've met, and actually, some of the partners we've met around the business in terms of how they've looked to help us already has been quite significant. And just to touch on some of the examples, they have great access to CISOs in a large level of enterprises. So being able to finesse our message, meet a number of the CISOs, not just in industry events, but one-on-ones has started to happen, which I think is very significant for us as an organization as the sort of IoT security challenge becomes a more topical agenda. They've got great assets and tools they've helped us with, but they've also really, I think, helped us in terms of being able to expand some of our marketing activity and footprint just by the level of investment and focusing on that to consciously build and increase our pipeline. Typically, in the past, our best opportunities have come from events or they've come specifically from some of the social media activity that you see us. But now we've got some specific sort of enterprise like the CISO led initiative as well funded and really supported by Ten Eleven. So we look forward to that in terms of helping us build out our business. I also just wanted to touch on [ Prelude ]. Again, a cybersecurity vendor based in Salt Lake City. They closely follow Ten Eleven. So if you -- in terms of the process we went through, we had a number of people that were interested in the company. And I guess, both Ten Eleven and Prelude stuck out for me is the absolute top 2. Hence, they chose us and we chose them. But what was really encouraging, it was -- why did they invest? And they told our employees a couple of kickoff meters we've had on. I thought I would just share that with you because they see, like Tern has or does many companies. But at the end of the day, we have a team, a good team. We have a product in a market that they see is growing and is challenging. And our product is real because they tested it and spoke to customers. Some of those were prospective customers, so not just people who are deployed. They see real problems getting solved. And I think what I like the way they describe real is many people come up with new technologies that are very disruptive, that throw out the old, but coming with the new, and that can work in certain market phenomenon. But I think in cybersecurity, where people have made significant investments and the threat landscape is somewhat increasing, you need to be able to work with the old because people aren't just going to throw out old investments, you need to evolve. And I think the effort we've put into our platform to make sure that we are interoperable, I think, it became very apparent, so that's encouraging here. So I just thought I'd share some of those things with you. But both Prelude and Ten Eleven have joined our Board, and new investors clearly given us cash on the balance sheet, but it's how we spend it to grow our business and look effectively to at least double our ARR, and we're aspiring to triple it this year and some companies are looking to significantly scale, which is great news. But I just wanted to, I guess, acknowledge. Tern clearly has been with us from day one. And I have worked -- still work closely with Bruce now. And I think at the end of the day, that we wouldn't have a company without the efforts and the inputs from Tern in the early stages. And I think that we got the company to a stage where we're then able to bring in, I guess, bigger funds and global partners. And so I think we're absolutely going in the right direction and we're on a journey. And generally, there's a tremendous amount of energy and enthusiasm there in terms of inside the company with the employees in terms of our potential. So let me just skip on. I just wanted to touch on, I guess, what we do and why we do it really is because of this slides. So this is data from IBM and Verizon, really, identities is the sort of Uber market we operate in, but for the Internet of Things. So device is typically that sit on the other side of the firewall. But human error is still the biggest issue and around credentials are still the biggest issue. So automation or eliminating that human error is fundamentally what it's all about. And effectively, our platform is designed to do that in its simplest form. I've talked before, so just to try and give, I guess, a holistic view, there are a number of companies on the left-hand side of this chart that are dealt with human identities. Many of them are IPOed and successful companies. Thoma Bravo another massive, big companies have bought many of them recently in terms of forward dropping identity, et cetera. So there's a large number of companies that have scaled and have been solving the problem of the human and the machine side. for the last 20-plus years, machine side less so. But the IoT challenge is a whole different ball game. It's really -- it's devices that sit, as I said, outside of the firewall, could be on an oil rig, it could be in a car, it could be a medical robot. Clearly, some of these devices connect to the enterprise, but they don't all. And so some of the organizations on the left are very much potential partners or potential competition in terms of how they look at whether they want to expand their footprint on the right-hand side. But what we're good at and what we do, what we're known for, and when you see some of the industry analysts talking about, it's the IAM piece on the right-hand side. which is really a foundation for zero touch for automating around IoT device identity. That's what we do, and that's what our unique value is. Just to build out this slide. And I think I just wanted to touch one of the pivots we've made in the last 12 months is really doubling down on KeyScaler- as-a-Service. So this is our cloud SaaS offering. Well, why? Because clearly, it solves some of the human error challenges, but it really helps people accelerate their projects because one of the -- I guess, the friction pieces in the sales cycle was whilst people were deploying their own cloud, they don't always have access to the right infrastructure, the right skills, they would need to integrate our platform with others. And some large companies still do that because they've got the resources. Some never go away. But KeyScaler-as- a-Service as been designed, effective to get people up and running faster. And sometimes, this is really a very comprehensive trial. So a significant company through 12 people at KeyScaler-as-a-Service, just to evaluate the functionality of our software over a 10-day period, which is a significant investment in itself. And so it shows our prospects potentially inside to the platform, so how they could use it. But what we're really trying to do, and we're moving people to a cloud-based to accelerate the fact that they can roll out their projects and pay as they grow effectively across all industry types. And just to touch on the industries, and I touched on some of the verticals before. But I think what's becoming emerging, and this has been driven initially from North America around some of the VIPC and the Virginia state and Department of Homeland Security funded projects, but critical infrastructure, driven by fear about war, fear about critical things that need to be protected, not just people safety but infrastructure safety. And this is becoming quite significant in terms of the scale of budgets and some of the programs in that area are very significant. So our partnership model is critical there in terms of accessing some of those funded schemes. And that is an evolving space, and now we're looking to replicate that in the U.K. and we have some early access points into the U.K. government and critical infrastructure, some of the programs over here, mainly driven by the Mission Link initiative that we're part of. But automotive is still very, very at a tremendous opportunity. We continue to get more logos and build our pipeline. Automotive takes not just the connected vehicle and people safety, but it's also about how you really secure the supply chain. Securing the supply chain is a critical part in the automotive space as a differentiator, but also necessary. Medical and healthcare, still an important sector, but the SBOM or software bill of materials, driven by some of the compliance and White House orders is becoming more topical. And it's not just really the creation of management of SBOM, and that in itself, there are other companies that do that. But how can you validate it and trust that, that SBOM is coming from a trusted device. Well, that's what we do, and that's coming out in our product to provide that extension for people. So medical is an important part. Industrial and manufacturing always has. And that got a bit -- they got hit when COVID came in terms of some of the challenges of those companies. But now we very much see that back on. And smart connected factories is definitely a significant theme and we've seen some significant projects come into our pipeline. It's a different set of use cases, but KeyScaler is designed to be able to manage some of those. So we see that as another opportunity. And then the final one, retail and logistics. And I think this has been really the last few months, and this often is where people are building their own IoT applications, so like they are in the other verticals. They're looking to connect devices, could be point of sale, could be in stores but it's also how they manage, aggregate, protect their data. And again, many people are looking for their supply chain and how they engage with their supply chain from a secure perspective. And we've got a couple of really exciting opportunities and potentially new partners that are in the fold, working with us there. So the future is bright. Security, and you see some of the presentations, Security isn't really [ sexy ] when you see it. It fundamentally solves the problem. If it does its job, you don't see it. So unfortunately, I don't have such a great video like Jo had earlier. Let me just talk to the partners because I think this is often a topic of conversation, and there's a bit of detail here on some of the partners so I just thought I would share. But Microsoft has been and continues to be important. Specifically, you saw an announcement where they pulled together a number of vendors, some that we're already working with, which is really dealing with this sort of industrial manufacturing sector, which is the largest significant part that includes automotive in the way that they go to market. And we're a key part of there solving a number of challenges. And independently at that, we were dealing with CyberArk. And we are just about to conclude, finally, the technical integration with CyberArk. We've done our piece. They've done theirs. They're building out their go-to-market and they're going to be launching this to their sales force at their CyberArk impact to their global kickoff in May. And really, CyberArk, what they're looking to do is allowing their customers -- going back to that chart that I showed you a bit on the right-hand side, allowing our customers who are use CyberArk for enterprise, privilege access management. How do they do that? For IoT devices. And they see us as the answer for their IoT devices and the use cases that attach to their platform. So we've built, again, an integrated UI so that their customers use CyberArk and connect to KeyScaler. So we're excited about that opportunity. EnTrust continues to be important. Clearly, they've been quite acquisitive, and they are building out their cloud story, which fits perfectly for us in a number of areas. So we've got a number of initiatives to effectively plumb in to their backbone of their cloud offerings, which is very much the way that a large number of these traditional identity enterprise companies are going. And that ARGOS security, just to touch on, I think, is exciting and new for us. They're very automotively focused. We solve a problem for them, specifically around vehicle to cloud. They've seen what we've done with some of the other automotive customers. And I think with the support of Microsoft and CyberArk, that's coming together nicely, and they're starting to pull us into new opportunities. I touched on VIPC and why is everyone thinks well, that's DHS-funded. That's just -- has been funded for 3 years and now has now got an incremental 4 years that kicks off next month for a number of projects, but it's now starting to bleed into some of the commercial base opportunity such as Capital One Arena. so that's quite exciting for us as well. So we kick off the POC with Capital Arena in terms of next quarter with VIPC sponsorship. And I guess things do come around. It's interesting PTC. That was almost the first partner that we engaged with, pre-Microsoft. They are definitely seeing the challenge again of security, of connected devices and connected factories. They've acquired companies like Kitware, who now have some significant challenges in their industrial base, which they can see us solve. So again, there seems to be a new momentum with PTC. And clearly, one of our previous investors, [indiscernible] and again, another enterprise company. Interestingly, there are 2 biggest sectors, one being finance, which isn't really a topical for us, but retail is an important sector for them where they deal with like 19 of the top 20, and they are very closely watching what we're doing in a large retail, and that's going very well. So we hope to open up a new opportunity, specifically into the retail space, and a lot of that could be with [indiscernible]. So really, those are our primary partners that we have, what I would call, technical integration, good executive alignment and we're building our go-to market. We, of course, have other partners, and I know some of you see them on our website where we have technical integration. But some customers want us to be able to connect to it, did you sell that certificate or a global science certificate. Those are just technical things or capabilities to enable our platform to do its job. They are not what I would call the true go-to-market partnerships. The ones on here are. So hopefully, that explains that. And I thought, I would just touch on the Persona. So one of the things we've done recently, and Persona really is about your target market, who do you want to speak to. And I think as the opportunity effectively is growing and it bleeds into the rest of the organization. I just wanted to touch on it. So we look at it really in 3 ways. Of course, you need C-level sponsorship, which could also be the business owner. But typically, it's a CSO or sometimes it's a CTO that shows interest. But in most cases, digital transformation projects will normally have one or both on the operational or the security side. So the reason I touched on that because these are the people we target. These are type of people we look to speak to. This is where we try to address our message. It isn't typical of standard enterprise IT selling. It's very not typical of that. But I just wanted to touch on these are the type of people. And these are the job titles or the functions that people have either bought from us or that talked to us. So this is all based on proven reality, not a theory. And just building out, just to touch on our business model. And whether it's KeyScaler or KeyScaler-as-a-service, it's the same product. Once our cloud service, which clearly we're delivering direct, albeit we do have the ability to white label that to partners, and we do have some of those conversations where people would look to offer it as they're -- in extension of their offering. But fundamentally, our business model is subscription. So it's really building ARR, creating that value. And this year, as I said before, we'll be looking to double, if not triple our ARR, really. And that's going to be down to the extent, not just on new logo acquisition, but how they move forward to production. Production is where scale comes. When they start rolling out to thousands, they have a significant -- of devices, they have a significant problem that they can't do with their teams and their people. And they have to solve it in real time on a regular basis throughout the life cycle of the product. And we've talked like [indiscernible] cars, for example, and others. Those -- they keep manufacturing new cars, and that continues to build as a customer. And that's one good example. The medical devices that roll out. Sometimes people have devices in the field or they're bringing out new products. And so that subscription builds as a company's scale. And last year, we signed a 5-year contract with a leading medical company. And they are, only now, going to production. So all the business we've done so far is to really advance and accelerate certain things they wanted to do. And they now have up to 12 divisions that are looking to engage and buy into that platform, that's their IoT application, and they collect the multiple of different devices, solve different problems, whether it be hospitals or other health care facilities. And so the success of that project clearly could be lucrative for us, but that's down to their success as they look to roll out those medical products. And the beauty of our solution is we're retrofit, so we can deal with infield as well as new products. But subscription is the key. People buy a license, they buy, for the base license, they buy an incremental per device license. And for the future products that we'll be adding in as extra functionality, there will be an additional license that people will pay for. And I think the final point on this, I wanted to make is you should definitely think of us as agnostic. I go back to the Ten Eleven point. We work, just because of the way we build our product and the way we allow people to interact with us, through our APIs, we can work with any device, with any cloud in an any CA. And some of the opportunities we see, they might have gone down the road of choosing one of their incumbent. And I can think of a retail example that shows one of our competitors, their corporate PKI vendor, [ DigiServe ] to solve the problem. And whilst they were talking with us as well and they went down the [ DigiServe ], it delayed their projects a year and now they're back in a single vendor scenario because they can't solve the problem because they can't plumb into any device or any cloud and deal with any CA. And it's quite important through software that you're able to do that. So our agnostic approach is important and will accelerate deployment and it's a very simple thing to say, but hard to do, but we've made that investment. So that's one of the big reasons why the customers buy us. So just to touch on the competitors, and there's a lot of detail here, which I guess, I apologize for because some, again, there's quite a broad range of views. Traditionally, our competitors are PKI, CK or CA vendors. So some of the enterprise people like [ DigiServe ] or like [indiscernible]. But in many cases, we have customers who've already made those investments and they want us to be able to deploy and manage their search for some of the IoT use cases. So they're at one level our competition, but they don't really solve the problem. Other organizations like Keyfactor, where they've got a cloud-based solution, also our competitors, but no, they don't extend to some of the other things I've talked about, like data security or SBOM functionality. And so understanding the use cases and making some of the real end-to-end problem is important. Secured by design vendors like Crypto Quantique, so where are people looking to build into hardware. That might solve the problem for one customer. But typically, people have many devices. They have to manage, connect to their application and dealing with hardware does not work. Customers do not overcome that problem. So again, they come back around and think, how do we deal with software? And then they come back around speaking to us. And then you've also got in the market where certain analysts refer to detect and respond or cloud IAM vendors, where they can't really distinguish between corporate, that on the left end of that slide before, and industrial IoT. And where effectively the extension for those partners that really want to try and solve that problem. So at one level, they could be collaborative partners or they're a competition. And that's why we selectively pick who we work with, where there's that joint effort. And where we win and where KeyScaler value goes beyond, it's not just about PKI or [indiscernible] and you hear a lot about it in the market. But often, that is a landing or beginning conversation. But is how would you do that through the life cycle? Adding incremental innovation, like, being able to do things at the edge. So as people are scaling an organization, being able to deliver functionality at the edge is crucial, especially for manufacturing and industrial use cases. We talked a lot about authentication, but how do you effectively provide continuous assurance for devices. So KeyScaler AI is just going to bring another level of continuous assurance and authorization for devices where we'll be able to spot anomalies or change the behavior of devices. So people can apply that to policy-based decisions. And I've mentioned SBOM functionality or enablement before. And the final point is [ VVKG ]. You may not know that we have unique patented technology. All of our most valued customers use it. We can use alternative methods but they just aren't secure, they aren't able to deal with some of the really unique challenges. And often, again, once people understand how they can deploy [ VVKG ] as a software or devices, that becomes very compelling, very sticky and they become very important customers to us. And I touched on the vendors before in terms of the enterprise vendors who are building out their IoT offerings. So you see Microsoft, Entrust, CyberArk, PTC. So that's really the landscape, the competitors and why we win. And then finally, I guess, just holistically to give you a view. So typically, we would have talked about KeyScaler, which we've now renamed as KeyScaler Central. That's what we had in the past. We built out our cloud SaaS offering, [ called to see ] for customers because people want to deploy and buy a SaaS model. It's exactly the same, but it's a SaaS model delivered directly by Device Authority. If people want to deploy it in their cloud, they buy a KeyScaler Central and then they can either add Edge and soon they'll be able to add to the AI functionality that I touched on before, and it has all the enterprise plumbing as part of that suite. So come the end of April, you will see us next month make an announcement of extending out our product capability with additional licenses, and there will be effectively a full suite for people. We've got a few customers now who are looking to add in the KeyScaler AI functionality. And again, this is driven really by customer need and customer demand that gives us that AI hook that we'll be looking for as well. So we're excited about the advances we're making in the product. You'll see some announcements that include us refreshing the website, focusing very much in the industrial space, providing a great foundation for us really to kick off into Q1, and we've got some very exciting, what I would call, large significant logos looking to -- going through POC now and going to production and scaling by the end of the year, which I think will make a huge difference to the company. And these names are known -- well-known in the industry, and I'm sure many of you all know them. So we look forward to getting those customers to production and really changing the outcome for Device Authority. So thank you very much. Tim, I will pass back to you.

Thank you very much, Darron. Much appreciated. We're now going to move on to a presentation by Richard Vincent of FundamentalVR. Richard, as I said at the beginning, apologizes that he can't be with us this evening, but we will be hearing from him shortly. So Darron, if you could stop sharing your screen, I'll move on to.

I thought I've done that.

Don't worry, I've quite manage the tape...

Hello. My name is Richard Vincent. I am the Co-Founder and CEO of FundamentalVR. And I'm pleased to join you today. Sorry, I can't be there in person, all live. Unfortunately, I've been called elsewhere, but I wanted to give you this recording to give you an update on where we are as a business. So let me just share my screen so that you can see some of the things that we are doing. Let's make sure that I add sound as well. There we go. Right. Okay. So as I said, FundamentalVR is our business. We have a -- we are a business that's at the cutting edge of spatial technology of Immersive VR and Haptic technology. And we choose to deploy that into the medical sphere. We do that through our platform, fundamental surgery. So let me tell you a little bit about that and the business. So we've been at this for approaching 9 years. I founded the business with my co-founder, Chris, in 2015, we could see that this technology would have a massive impact in the medical field and have been pursuing that ever since. Our platform, fundamental surgery today is deployed in over 30 countries by our customers, the medical device and pharmaceutical businesses that we work with. We choose not to go to market through hospitals for a variety of reasons, but mainly because the way the education and skills transfer happens in most of the medical sphere in tenured surgeons and nursing is through the support of the medical device companies. So we really tap into that and we virtualize that move. We are an IP-rich company. We are breaking new grounds all the time in the use of Immersive technology and Haptic technology and space technology. We have 3 patents issued in the U.S. We have another 7 that are currently being prosecuted. The company is made up of about 130 people, specialists in their field, groundbreaking in their discipline across both the U.K. and the U.S., ranging from strategic planning through to gameplay development and unity programmers, 3D artists, educationalists, surgeons, altogether coming together to bring this unique product to market for our customers. We're really proud to say that we are #1 in the medical VR space globally. We were recognized by Frost & Sullivan in 2023 as the Company of the Year in the VR Surgical Space. And then again, later in the year was recognized in the Frost radar, where they did a deep dive analysis at the top 10 organizations in this field, and they plotted us, as you can see on the right there, at the top right of their radar, both in growth trajectory and also our innovation. We're very proud of that recognition. In terms of our investor base, we have a rich and deep investor base, which we're incredibly proud of, and I'm proud to have all of our supporters and all of you. Tern have been with us for a number of years now, from the very early stage. In fact, they were our first institutional money into the business. And since then, we've gone on and brought on a number of different investors. Our lead investor today is EQT Life Sciences, which you may well have heard of, a significant powerhouse in the VC space. We've also had some really important strategic investors, 2 of them there. The Mayo Clinic, which needs no introduction in the U.S.; and [ Zona ] Clinic, who are [indiscernible] and adequately impressive organization in Germany. So let me tell you a little bit about what we're doing and how our proposition works. We are a business that's focused on one key strategic problem that our customers have, the Medtech businesses we work with, the people who make medical devices, medical robots, pharmaceutical products for surgical use. These are our customers, and they have the same problem across the globe, and that is all about the learning curve. When you introduce a new or an existing product with an update to it, you have an installed base of surgeons or nurses or tech staff who need to get competency with that product. Without that competency and confidence, they won't adopt. And so the single biggest problem for Medtech businesses is about creating competency at scale. And that's where we come in. Now, digital surgery as a statement encompasses image-guided surgery, cardiovascular surgery, robotic surgery, EP, Cath lab surgery, all of these areas where the real innovation is happening. It's where the hospital systems make their money. It's where the innovation is really happening. It's where our customers, the Medtech businesses really need to differentiate and show innovation. And again, that's where we come in because we release the throttle on adoption by accelerating them into market. You see, for our businesses, fundamental -- for our customers, sorry, FundamentalVR is an acceleration multiplier. If there's a learning curve for 50 cases, you can get through them much faster and much more effectively with a much deeper insight and knowledge linked to the AI and machine learning we have in the platform, you can do all of that much quicker through the Fundamental Surgery platform, and that's our proposition to our customers. We get you there faster. We increase sales, we increase time with your customers, the surgeons. We reduced cost to allow you, as a med device business, to accelerate into market. And we do that across a multiple of different disciplines, whether that's anesthesiology, robotics, cardiovascular, urology, orthopedics or nursing in all general terms. All of those areas, we can have a significant impact in both the technical and the procedural training that happens around the adoption of product. Let me show you a little video that bring some of that to life. [Presentation]

So there's a little bit about the platform and how it works. And as you can imagine, it's just scratching the surface. But hopefully, you've got some of the sense of it there. Key points really are that, as I said, we are across multiple disciplines, we've yet to find a discipline or a procedural area that our platform can't work with. As a technology, we are hardware-agnostic. We are pure software, which means we work with the best headsets, the best Haptic devices to deliver the compelling skills transfer that we need to achieve, whether it's a Meta device or an Apple Vision Pro, they can all work seamlessly within the platform. And we do that across true scale, internationally delivering into whatever markets our customers need us to be in. Our customers, as I mentioned, are those medical device and pharmaceutical businesses, and you can see some examples of them here, on the side of the screen. Our business model is all about recurring revenue. We seek to write contracts with our customers that involve an annual license fee for access to our platform and then a scalable per seat deployment fee so that as they increase the scale of their deployment, their costs increase accordingly and scale with us and with them. So that is an annual recurring revenue contract that we write. It increases in size as we get both vertical growth in deployment of the headset, plus in adding to the procedure, so that creates vertical growth for us as well. And we expect our customers as big multinational, multidivisional organizations, we expect them to expand horizontally as well. So moving from one division to another. And we've had some very good success in doing this with a number of our customers over the last few years. We hope to see, on average, a customer achieving about 5 simulations with us over a period of time. And we're making some good traction on that objective. So to talk about some of the use cases, and these are ones which are broadly in the public domain. We work with Novartis in their gene therapy division, achieving skills transfer in a highly complex subretinal injection that is designed, not for early stage learning, we're talking about consultant, very senior consultant level ophthalmology surgeons who are deploying this incredibly complex procedure to achieve an amazing outcome. It cures blindness against particular degenerative diseases. We are the way that, that skills transfer is achieved by Novartis.. With Abiomed we're working in the Cath lab and in the ICU to train both the surgeons and the deployment of their Impella pump device, which goes into the heart, as well as the tech staff and the nursing staff on managing a patient once they have that within -- they have the Impella pump within their heart. Both of those 2 factors, both placement and management of the patient and the hemodynamics connected to that, both of those have a direct impact on the adoption of their product, and therefore, we're influencing both of those 2 things. With Teleflex, we work in urology to help them with the UroLift device with both their team training. So their sales -- medical sales representative training and the end users of their particular device against their key procedural use cases. With AbbVie, in anesthesiology, so helping them to help their end customers to understand the placement of their drugs or drug into the different muscle groups of a patient, using hyper-real vision and allowing those users to be able to peel away, as you can see illustrated here, peel away the different layers of a patient to understand what's happening as they undergo that particular procedure to help them to move faster through that learning curve. Likewise, with CMR, the robotics business, we -- through our full digital twin of their [indiscernible] robot, we're able to help them with technical training to allow them to reduce the time and effort needed to bring an entire team up to speed on the use of this innovative and amazing robotic system. So a number of different use cases across a number of different areas, and I could have picked a collection others. But the key thing with all of them will be the real world impact and the way that, that's impacting the business, that's what our customers are buying from us. And we're seeing that across the board now, with increases in sales, with reduction in cost, with increases in confidence, with increases in accuracy, with increases in insight, with reduction in time. All of those metrics are really starting to come through. And those are the things that turn us into a really essential part of our customers' go-to-market strategy, and that's where we become incredibly sticky as an organization. So those are the customer use cases and some of the benefits. What you would have also seen, I'm sure in the market is a campaign that's been running over the last 6 to 8 months from Meta. In fact, a new version of this is just -- has just launched. We're incredibly proud of this. As I said, we are supportive of all of the hardware OEMs out there and work closely with all of them, including Meta. We're incredibly proud to have Meta showcase the work that we're doing with Orbis, using their devices to achieve true skills transfer in developing countries. This is a really innovative and fantastic use case that we've had now in market for about 2 years, and it continues to evolve and develop. And in fact, right now, with the advent of the most recent campaign from Meta, this is rolling out globally. We're also rolling out the next version of this system to those different countries across the world with Orbis. I'm going to run this video. [Presentation]

A fantastic showcase for us. We're incredibly proud to be part of that. And more importantly, incredibly proud to be part of the work that Orbis and the International Flying Eye Hospital is doing across the developing nations to teach cataract surgery, which is the single biggest challenge in surgery across those developing nations. So incredibly proud of that work. So in summary. Why do customers choose us? And why are we being successful? And will we grow into an incredibly successful platform for the Medtech industry? Well, it's really the 3 things you see here. First of all, our systems are purpose-built for that specialist surgical suite, whether it's a stand-alone headset for Meta, the quest, or whether it's a full Haptic system, we can deliver a blended VR experience that achieves the educational skills transfer objectives that our customers have that allows them to get the business output they want. Deep clinical rigor. We are accredited by the World College of Surgeons, American Academy of Orthopedic Surgeons, affiliated to the American Academy of Ophthalmologists and many others. Real breadth and depth of platform, from stand-alone to haptic, multimodal, bringing people together with collaboration within our system, allowing them to, in effect, remove distance by virtually having presence in the same room to learn one-to-one, one-to-many across that, across our platform. We will record and monitor the telemetry and the assessment data, we apply machine learning and AI to that to allow us to predict with incredible accuracy the way that someone's skills are developing. We can even predict an error before it happens and deploy advice and knowledge around that. We can digitize the expertise of surgeons around the world and bring it into our platform. We do all of that with exactitude at scale, which means these are super high fidelity experiences. They have haptics involved where that's appropriate, that mean that we can deliver that true skills transfer. Not for early-stage learning, I'm talking about tenured surgeons continuing to develop their skills and learn new techniques. And we do that in a way that's appropriate for our market. So we have software development kits, that means that third parties can publish into our platform, if they wish to. As I mentioned, we are hardware agnostic, we're also software agnostic, which means we can take in other people's simulations and attach them to our delivery mechanism and our analytics systems. We're able to ring-fence the IP of our customers, which they hold incredibly close to them and make sure that we don't infringe that. We can even what they do -- what they call containerize -- excuse me, that IP and integrate into their systems, into their management -- learning management systems, into their go-to-market systems to allow them to truly achieve our core proposition, which is to be an acceleration multiplier through Virtual Reality to create competency at scale. Over the last 3 years, we've achieved some really good growth. We're really satisfied with the growth we've got. We don't release specific numbers on that as a private company, as you'll understand, but we've achieved some very satisfactory growth objectives and we continue to push hard to establish Fundamental Surgery as the de facto platform for the medical device industry to bring their products to market and achieve that acceleration multiplier that I talked about. I hope you found that useful. Thank you very much. Let me just stop sharing this. And I wish you a successful rest of this meeting, and many thanks for your attendance.

Well, thank you very much, Richard, for that. Now time for our final presentation, which is Alastair Williamson from Wyld Networks. So Alastair, I'll hand over to you.

Thanks very much, Tim. Good evening to everybody. Let me just share some slides. So hopefully, you can see some slides. So I want to spend about 15, 20 minutes just talking about Wyld Networks, what we do, what problems we solve, and also talk about some use cases and some recent successes. So what's the problem that we actually solve? Well, 46 billion IoT sensors were getting -- will be deployed every year by 2028. So that's a huge number of IoT sensors getting deployed globally. The problem is that, only 15% of the world's surface has access to the Internet, and that's traditionally terrestrial networks, so mobile networks, WiFi networks or terrestrial LoRaWAN networks. So it's a big problem. How do we provide connectivity in that 85% of the world's surface where a lot of these IoT sensors are going to be deployed? And that's what we solve. So we leverage low earth orbiting satellites to provide 100% global connectivity, specifically for the Internet of Things, and more importantly, our whole concept of being able to offer our customers an affordable solution for them to connect their IoT devices to the Internet anywhere in the world. A recent report came out, it's McKinsey's actually basically stating is it, someone can solve this problem, it could potentially boost global GDP by USD 3 trillion by 2030. And then key drivers here are the need for data, there's a massive explosion in businesses, organizations looking to collect data and then looking to collect that data to do 2 things. One is to increase their operational efficiencies and lower their costs, and also to meet their sustainability goals. And all the conversations we have with customers are pretty much dual purpose. They're talking about operational efficiency and lowering costs, but they're also talking about how they can meet their sustainability goals. To give you an idea of the total addressable market for Wyld, it's about USD 4.3 billion by 2028. So that's the market that we're actually looking to get into. So we were founded in Cambridge in the U.K. We got 31 staff members at the end of Q4. We're listed on the NASDAQ First North July 2021 and on the OTCQB in the U.S. in 2022. And our whole concept is being a virtual satellite network operator for the Internet of Things. So we partner with satellite operators and provide a complete end-to-end solution. So we're working with Eutelsat, Lacuna, DEWA and Astrocast, and we'll be adding to those satellite constellations throughout this year. So we've got a large order backlog at the end of last year, it sat at about SEK 94 million, and recent updates over the last couple of months is that we launched our S-band capability. So our existing product suite works in the ISM bands, which is in the sort of 900 frequency space, but we've actually launched an S-band product that's up at the 2.4 gigahertz space, and that was really all about providing a solution that can deliver more data. So it allows us to go from very, very low bandwidth use cases to higher bandwidth solution use cases using the S-band products. We've started to ship products. So we're getting product into our customers' hands. And also this year, we launched Wyld Fusion as a stand-alone platform, and I'll get into that further through the presentation as why we did it. But basically, this generates an additional revenue stream for Wyld. Also, we launched a collaboration with SpaceX, which is really exciting for Wyld. That's both a commercial collaboration and a technical collaboration, and I'll get into more detail on that further into the presentation. And also, over the last month or so, we basically delivered the European Space Agency projects, the ESA project, which was also a pretty exciting project. And that was all about -- that was working with a university in Italy and also with Thales Ariane space. And that's all about how Thales Ariane space want to look at how to use Wyld technology to mesh satellites together. It's not just significant for Thales, but it's obviously going to be significant for a lot of other satellite operators where we can basically mesh satellites together in space. So reducing the latency of communication between ground and earth by basically sending data to a satellite that will look for the nearest satellite to the ground station, send the data in space to that satellite, which would send it back down to ground. So it reduces latency, which is really important. And also it's pretty important in ensuring you've got uptime. So your data is continuously flowing and we're meshing those satellites together. And in turn, what that means is we can actually reduce the number of satellites that are required because Elon Musk is talking about, he's got about 12,000 at the moment, and he was talking about going up to 40,000. Well, we can mesh satellites together, then he can significantly reduce the number of satellites he needs to put up there to create his network. So how does it actually work? Well, there's actually 3 parts to the product and the solutions. There's the hardware piece, which is on the left-hand side, which is the Wyld Connect modules and terminals. Those devices connect to sensors. And when a satellite passes overheads, it sends the data to that satellite. And when the satellite passes over a ground station, it sends a satellite to the ground station, which is connected to Wyld Fusion. Wyld Fusion is our provisioning data device management and payment platform, and that platform basically collects the data and then passes that data to our customers who then visualize that data and take action on that data to make informed decisions. And that's where our data service comes in, but I'll go through the revenue model in a minute so you can get a full understanding of how we actually make money. So as I said, there's the hardware piece. There's Wyld Connect. That's a piece of electronics that can be embedded into a sensor. It's pretty small. And we charge our customers about $49 per module. We had an order backlog at the end of last year of about 235,000 of these devices, and we're now shipping those modules. And we have the Wyld Connect terminal, which basically does a very similar thing to the module, except it's connected to a IoT device, either wired or wirelessly, it's not actually embedded into the IoT device. It's got a lot more features built into it on managing power consumption and it also has a lot of more computational capacity and to do some more things. And we basically sell that product for about -- up to about $499, about $500 a terminal, and we had an order backlog of about 4,500 of those and we're shipping them. Then we have Wyld Fusion, which is our management platform. And we developed Wyld Fusion to create our complete end-to-end solution. But as I said a bit earlier, we also launched Wyld Fusion a few weeks ago. It's a stand-alone platform, and I'll get into that. Basically, our customers pay us an access fee to actually be able to utilize Wyld Fusion, and that's a monthly subscription fee that they pay us. And they pay us that for our complete end-to-end solution but they also, as a stand-alone, they pay a subscription fee as well as a connection fee. And then there's the Wyld data. The Wyld data is a pretty important part of our offering because that's where the customer actually pays us a fee to use the network and based on the ISM band products, they pay us up to $5 per module or terminal per month to actually use the network. So as I said, we've got about a combination of modules and terminals, about 240,000 of them to be -- which are being shipped. And once they're all fully deployed, that will basically generate a revenue of up to $1.2 million per month. And that's really where the revenue will come from. So our model is very much similar to that of a mobile operator, that you pay a one-off fee for the hardware, that's your mobile phone, and then you pay a monthly fee for each phone to the operator to actually use the network. So our model is very, very similar. So just -- I've looked at some of the use cases, obviously, because we're looking at providing connectivity in that 85% of the world's surface where there's no access to the Internet. And in many cases, there's actually no electricity. So our solution doesn't require external power. We can basically deploy our devices into the field with battery backup and solar panels, and they will stay in the field for 5 to 7 years. So our focus is agriculture, energy, which is oil and gas, the utilities, logistics and also the environment. We've had a lot of success in agriculture and oil and gas. And we're now starting to see some real peak business coming through in logistics, in tracking containers and understanding, collecting data in respect to the contents of those containers, particularly with perishable goods. But also, we're starting to see some other new use cases coming through in livestock tracking, particularly in Latin America, where -- and in Brazil, in particular, where the rate -- the government has basically made -- passed a law where all livestock has to be tracked, and I can go through some of those use cases a bit later on. So yes, if we just take one of them, we have a customer, Treevia, they're into forestry protection. This is a specific use case. They've got a sensor where they deploy onto trees in the forestry business, and they basically have the Wyld module inserted into or embedded into their sensor. And if you look at Brazil, there's over 500 million hectares of forest in Brazil, such pretty big. And these sensors basically collect data on the health of that trees. So it looks at water content, it looks at girth. And by utilizing these sensors, forestry companies can increase the productivity or the yield of timber by up to 30%. And you can imagine in a market, that's worth 30 -- USD 322 billion last year by being able to actually increase your productivity by 30% and really adding significant value to forestry companies. So that's one example of the use case. Bayer is another customer of ours, and it's interesting that what we're helping them do is basically collect data to manage beehive health. And the rationale behind this is pretty important because 30% of all global food produced is actually produced by pollinators or created by pollinators and there's over 100 million commercial beehives around the world, not including the noncommercial, which is basically the smaller organizations managing their beehives. But the commercial operation on beehives is pretty massive. There's over 100 million of them. And so we're deploying devices onto the beehives to measure the health to collect data on the weight, content of water, content of honey, but actually just manage the health of the beehives. And that's pretty important, not just in the production of honey, but also in the fact that -- if you take California alone, every year, over 30 billion pollinated bees are transported from all over the U.S. into California to basically pollinate some very high-cost crops. And that's a lot of beehives moving around the world. And so Bayer's looking to ensure that the health of those beehives is ensured throughout not just the transportation but also during the pollination period. And if you look at how much -- what bees are responsible for, they're responsible for over USD 15 billion worth of crop in the U.S. alone. So they're pretty important for us. And we're making a lot of inroads through Bayer in getting this solution deployed across a lot of hives, in particular in the U.S. itself. And then there's another one, which is soil moisture sensing, which is -- this is a customer we have, this is in South Africa, actually. But it's interesting in that 70% of all freshwater is actually consumed in agriculture. And a significant chunk of fresh water being used in agriculture, and 30% of that water is actually wasted by potentially people over irrigating because they don't have any data to understand when they should irrigate and how they should optimize their irrigation, and that's what we do. So we deploy our technology together with soil moisture sensors that collect data on the moisture content or the water content of the soil so that you can actually optimize your irrigation and reduce the waste of water. And with the work that we're doing, we've already demonstrated that we can reduce that waste of water by over 50%. So that's 50% of that 30% that's wasted, we can actually reduce. And also, we can -- by using our solution, giving farmers' data, we can actually increase the yield of crop on the same footprint by over 15%. And as an example, that's a farm in South Africa. You can actually see its brand to our customers, got its logo branded on the terminal. But that's a soil moisture probe in the ground, a terminal, and the top of that pole is actually a modem and that sends the data to satellite. Another one that I wanted to talk about is IMAE, which is a Brazilian company, and they are basically next-generation wind turbines and they're using our technology to collect data to optimize the collection of energy from wind power. Now, if you take Brazil, their power requirements are about 90% met by renewable energy. So they're pretty high up there in the top 10 in the world and they're rolling out a significant number of not just large turbines, but what they call next-generation commercial turbines, which really are there to power farms rather than just wind-generated farms. And this is -- this use case is not about the volume of wind turbines, but it's really about the amount of data that's required to be collected. And we're working with IMAE and deploying these throughout Brazil. But I wanted to go back to the soil moisture sensor use case that I talked about earlier. It's really a large use case for us. There's over -- it's 5 million soil moisture probes deployed every year. That was last year and 5 million are deployed every year. And to give you an example, we have another customer, which is British-American Tobacco, and they contract out to about 90,000 farms and they're looking to put about 4 soil moisture probes into each of those farms starting this year. So it gives you an idea of the size and the scale of soil moisture, connectivity and probes. It is pretty large. And given that we're now providing our customers with ability to collect their data anywhere in the world, that number of soil moisture probes is really going to accelerate greatly over the next few years. But I talked earlier about the launch of Wyld Fusion as a stand-alone platform. So you can see our end-to-end solution includes Wyld Connect's terminals and modules, satellites and Wyld Fusion. And we developed Wyld Fusion, simply the fact, we couldn't find another platform that supported both terrestrial connectivity and satellite connectivity. So we actually developed Wyld Fusion for that application, combining terrestrial connectivity and satellite connectivity. And we use it ourselves as part of our own solution, but we also launched this year Wyld Fusion as a stand-alone platform, simply because we had customers that came to us and said, "Well, we want satellite connectivity. We're buying your solution, but we've also got a terrestrial connectivity. And we want to put our terrestrial connectivity onto the same platform." So it makes sense for these guys to look, to start using Wyld Fusion as a stand-alone solution. And we have several customers that have already connected their terrestrial devices to Wyld Fusion. And that's growing pretty rapidly, and we see there's another revenue stream for Wyld. And to give you an idea of the size of the markets, so there are terrestrial IoT platforms out there. Siemens, PTC, SAP, IBM, Microsoft, you can go and buy a terrestrial IoT software platform. And the value of that market in 2023 was about USD 8.2 billion, and it's set to grow to over USD 17 billion by 2028. And now we believe, and we know this because we've done a lot of research, is that we have the only combined satellite and terrestrial platform. We'll support both terrestrial networks and satellite networks. As I say, we already have customers that are migrating their terrestrial devices onto our platform as a stand-alone and then they're looking to add the satellite connectivity for Wyld as they move further through their journey. We have a few customers already connected as a stand-alone. And we also are working with one customer to look at getting about 1 million terrestrial devices onto the Wyld platform as a stand-alone solution. So we obviously continue to market Wyld end-to-end satellite IoT connectivity solution, but we are also now marketing Wyld Fusion as a stand-alone platform into a really significantly large market for IoT platforms. So hopefully, that's given you an insight into what we do and a bit of an update from the last 3 months. So thank you very much.

Well, thank you very much indeed, Alastair. Well, they were 4 fascinating presentations. I know that there are a number of questions that people have got. I'd just like to assure everybody who sent in questions and comments in advance that they have all been seen by the Board and management of Tern. So if they're not directly answered now, they have been considered. I don't know, they were considered in Board deliberations earlier today. But I'll now hand over to Ian, who I think, you may want to make a few comments before we move on to questions. Ian, you're muted.

Sorry. Yes, I'd like to make a few observations. Before Tern, I've been part of 4 different early-stage investment companies. Normally, these companies invest in businesses that are in early stage businesses that are quite small and immature and haven't yet either properly developed the product to the market. And that's the case of all the companies in Tern's portfolio. When we've invested in these companies, there were typically 2 or 3 founders. So it's quite typical for many of these early-stage investments to fail, and a 40% success rate in the portfolio is regarded reasonably good in the circumstances. By contrast, we've created a portfolio where 80% of our companies are not only surviving, but they're thriving. Our metric is significantly much better than other venture capital companies. We've had one exit in Wyld, which you've just heard about, which is well underway to breakeven, and a very, very hot space in the fast-growing lower earth orbit market. Device Authority and FundamentalVR are now syndicated with specialist growth capital VCs. These are VCs who understand their market and their particular markets and they're aiming to grow these businesses into substantial businesses, and their ticket size is at 10 million plus. Talking Medicines is now established in a category of market-specific AI, a sector that's achieving 50x return in multiples of revenue. Now we are sitting in a market cap of about [ GBP 7.2 million ]. At the current share price, we are very, very seriously undervalued. It really doesn't begin to remotely represent the inherent value of this portfolio. We see what people put in chat bots, but we are not in the entertainment industry. We are in the value creation industry. And the issue is not about our operating costs. We're very lean. In the last year, we have cut overheads by 40%. We've cut our management team in half. We've moved our office to [indiscernible] to save costs. Our focus which can't be cut is about supporting the companies and Tern's efforts are geared to remaining -- to remain a major participant in helping these companies prosper and return significant value in a liquidity event at the appropriate time. Our shareholders will share when value is realized, and we'll always aim to maximize the return to you, our shareholders. And that's a goal that drives us in everything we do. So that was my kind of.....

Thank you for that, Ian, and it does address some of the points that people have been making. But just to pick you up on a few points, and this goes directly to the questions that we've had asked during the session today. The questioner says fantastic presentations. But it's apparent or his view is that these portfolio companies don't need any material input from Tern anymore. And therefore, you can cut the team even further. The team is twofold into the Board. I can comment on the Board because a U.K. plc can survive with 2 directors, but to be broker of the AIM Rules, really 3 is an absolute minimum. I sit on the board of 2 public investment companies and one's got 4 directors and one has got 5. But going to the input into the portfolio companies. Do you want to comment further on that, on what's actually being done on a day-to-day basis?

I'll take that question. And as you heard today, thematically in the presentations, and Darron specifically pointed it out, that AI has become important. And Ian just presented the fact that we're early stage investors who really focus on product and product market fit. So to be frank, I and Bruce have not been busier than we have been in the last 6 to 9 months as we've helped the companies adopt and take on the AI positioning. And this comes from the synergistic portfolio that we talked about. When you talk about Ten Eleven, Ten Eleven is all about outbound marketing and creating outbound marketing interest. These are very expensive growth capital areas that require a different kind of venture capital business. We support the company from a product market fit basis. We're bringing in syndicated investors who are now supporting the growth capital required, they have foundations, they have the places where they market and seminars and outgoing marketing events that showcase their companies. We don't have the capital to do that. We have the resources that know how to make products. We have the resources that know how to make product market fit. And our companies, I think, reflect the success of that endeavor and the work that we do and our networks are focused in those areas. So I think we're busier than ever in bringing new technology and new market opportunities for the products that exist today as a basis of what we do and what we do to support you, our shareholders, because by doing so, we maintain an important relevance in a seat at the table that will protect us in providing you with a sizable return when we exit these businesses.

Thank you for that, Al. I think it's pretty clear there, that there is a lot going on day to day. And is it right to say that, that input that's being given on a day-to-day basis is crucial to protecting the Tern positions in these companies? Because without capital, you've got to offer something.

Absolutely. When venture capital investing is a full complex part. It's like Union Rugby rules in Australia. I mean, just about anything goes. And there are so many tricks and preferences and different classes of shares and things that can get -- get structured behind the scenes that, if we're not at the table and we're not creating value, we will be slowly and painfully eliminated from participating in the business. And this goes beyond money, this is just because of greed. The more that someone can grab from the table for their investors, they're going to do it. So we spend a considerable amount of our time making sure deals are structured in such a way that our shareholders are protected on the returns because that's the area that is a black art in venture capital.

And you mentioned, obviously, the goal is to return to shareholders through liquidity events. Tern now has minority positions in all of its portfolio companies. Does Tern have the freedom to sell those positions as and when it sees fit? Or do other shareholders have the same what we do?

Generally speaking, the way the share purchase agreements are structured and these investment rounds created, the investor majority, that is the professional investors, not the company, make the decisions on who can play and who cannot play. And again, that's part of this black card of making sure that when these purchase agreements are put together, there is an opportunity for us to make sure that we're treated as an equal rather than as a stepchild. And if opportunities present themselves to do things to us, we still will be required to seek investor majority to secure anything that we would like to do on our own. So it's a check and balance within the investment agreements that exist within these companies that we're part of.

So there are those checks and balances. But ultimately, there is still the ability to...

There's a realization opportunity. It just -- it has to be in balance with everybody else, and then it makes sense to the whole Group rather than just us by ourselves.

But our co-investment partners are also very keen to ensure the right kind of liquidity events. So we're all in the same boat. We're all trying to realize our yield.

Our [indiscernible] our common denominator.

Well, and obviously, the value of these companies is coming across, particularly to some of our larger shareholders. And I've had one or two mentioned to me, would there be an opportunity for them to participate if Tern was selling all companies were looking to raise further funds?

Again, as we said earlier -- I said earlier, it would be ideal to do something like that if, in fact, the investor majority would be so inclined. And again, we would make a hard case for that because that would be a preferred outlet. .

I'm really -- I'm conscious that we now -- we've been going for over 1.5 hours, and we've kept 95% of the attendance. So we're going to have to wrap it up pretty quickly. But just as a final comment, these are all growing companies. Are you comfortable with the current funding needs and the fact that they have sufficient funding for current requirements?

I think at this point, everyone is funded to give them runway through at least to the second half of the year, if not, in most cases, for this year and next year. So the problem we face is if they become really successful and grow faster than their forecast and grow. And again, the prospects that you heard at these companies are pretty strong. So we'll stay here and watch this space. But at the end of the day, there is capital that has been deployed with these recent fundings that is enabling the companies to continue to move forward.

Well, I think we're going to have to wrap it up there. And apologies if we haven't answer the questions that have been submitted today and we hopefully covered the areas that people have been questioning. But as always, if you've got anything further, please get in touch, contact details on all the announcements, [email protected]. We will endeavor to put a recording of this session up on the website as soon as possible. For those who haven't had the opportunity, please pass on those details on bulletin boards and things to make sure people see it because we want to share the fantastic opportunities and growth that these companies are enjoying. And hopefully, and I'm pretty confident that is going to be seen as a return to Tern shareholders in due course. So thank you very much to all the presenters this evening. Thank you, Darron and Alastair, in particular for joining us live. Jo and Richard for your videos. But most of all, thank you very much to everybody who's joined us this evening to participate and watch the presentations. Thank you.