Vection Technologies Limited (VR1) Earnings Call Transcript & Summary

Okay. Good afternoon, everyone, and welcome to The Insider. My name is Patrick Nelson, I'm the MD at Reach, and I'll be facilitating the webcast today. For those that are new to the Reach network, everything we do at Reach is about connecting companies and investors. For self-directed investors, we're a source of high-quality deal flow of both listed and unlisted opportunities, and we work to improve their access to those companies and their management teams. For companies, on the other hand, we facilitate the vision of capital that helps them grow, and we act as a trusted corporate adviser with their own experience investment banking team. We are a highly collaborative organization, worked closely with advisers, institutional investors for the benefit of the companies and their shareholders. Today is a Meet the CEO event, where we give you access to the CEOs of ASX companies. For the featured CEOs, this is an invite-only event, you can't buy a spot. You have to be either put forward as a favorite stock by a funds manager at one of the Reach Markets meet The Funds Manager Sessions or warmly introduced to us by the Reach corporate team. We think it's a good structure where the funds managers put forth -- put their money where their mouth is and put forward the companies -- their favorite companies. And then these companies are then invited to present to you directly. And so, you get to make an informal and consider decision and connect directly with that company and have the opportunity to ask some questions. So to be booked into the Meet the CEO and the Meet the Funds Manager Event, type Insider in the question box, and our team will book you into the next sessions of each. Now some housekeeping. [Operator Instructions] Now for the presenters we have today, we have Mario Vecchio, the CEO of TZ Limited; Karen Wellman, the CEO of Jindalee Resources; and Gianmarco Orgnoni, the Director of Vection Technologies. TZ Limited trades under TZL. Jindalee can be found under the ticket JRL, and Vection Technologies is VR1. So stick these codes into your curated Reach Markets watchlists and stay on the inside running. Now the first presenter, we have Mario Vecchio, the CEO of TZ Limited. TZ provides a platform that helps clients access -- manage their access and control of physical spaces, their clients are A-list companies, some of the biggest tech companies from the plant such as Apple, Microsoft, Google, Amazon and a very, very long list from there. So Mario, thank you very much for your time today. You should now have control of the presentation.

Thanks, Pat. Hi, everybody. Appreciate your time, and Happy New Year to everybody. Let me get started firstly. Obviously, we've got the standard disclaimer document there. But as Pat said, TZ is an engineering software company that centered around access control of physical spaces, and I'll explain what that actually means in a moment for those of you who don't know. Ultimately, our software controls the opening and closing of books. And at the core simplest level, that's what we do. So we do -- we have software and locking devices that we sell on a global basis. We have patents on our locking systems -- global patents on our locking systems, which are very unique in the world today. Not only do we manage our own software, we manage our own devices, but we manage our other smart locker device companies as well. So our software covers -- as a platform covers our own smart locks, but also covers many of the other company smart locks that are produced around the world. Most of the largest smart lock manufacturers are European-based, and we cover off the top 10 smart lock vendors in the world today. I'll talk about quickly our 3 markets that we're primarily focusing, one is called agile workplace, the other one is contactless payments, and the last one is really part of the click-and-collect process of e-commerce. We've been fortunate that COVID has fast forwarded this market through people working in different ways, and for people wanting to do contact -- as many contactless activities as possible and, obviously, the drive of e-commerce globally at the same time. So just a quick snapshot of what the agile workplace is. The agile workplace is the hybrid office, which has changed forever, and we're seeing this and have seen this on a global basis where people -- corporations won't have their staff typically back in the office -- some of their stuff will never go back in the office. Some of their staff will go back in 3 days a week, 3 days a month, 2 days a week, whatever is appropriate for them. The rest of the time they'll work from home. And so, companies had to redesign and reengineer their workplaces so that they can have a hybrid environment. Typically, people don't get their own offices and desks anymore in this new workplace. They need to be able to store their assets. They need to be able to get in and out of the building, et cetera, et cetera. And I'll explain a little bit about that in a moment. Contactless transactions, people are trying to do as many contactless transactions as possible from getting their food delivered from your Uber Eats guy or your menu like guy and making sure that you don't have to tell for the restaurant, if you choose not to. Click-and-collect, e-commerce, that's -- I think we all understand what that is a convenient way to be able to go and get your goods either delivered to your premise, to your location, or go and collect them from a centralized location. The smart locker market is just heading towards almost a B in U.S. in different sectors are growing at different rates. But all in all, the market is growing at around 15% CAGR right now. So it's got a good growth prospect and really crack the $1 billion pretty much by the end of this calendar year. What we've done is, we've moved from part of our transformation has moved from software that sits inside the customer premise and inside their infrastructure to cloud. And we did a had charge on that, and we're in the process of migrating customers from on-premise software to having their software managed in our TZ cloud infrastructure, which I'll talk about a little later. We're continuing to invest internationally. For those of you who don't know, around 60% of our revenue comes from overseas. Actually, almost 65% of our revenue comes from overseas. The predominance of that is the U.S. We have a -- we're expanding our Oxford facility in London right now. We've got a good footprint in the U.S. We're just opening up a San Francisco office as we speak. And set up a second development team in India. We've got a development team in Australia. And now we have a development team in India, which is currently in the process of being scaled up as we speak. Our India operations also do some financial back-end services and all that tech support comes from our India operations, which is based in Delhi. As I said, last quarter was a transformational quarter for us. We moved from selling perpetual licenses to selling SaaS services. I'm proud to say that within the first quarter, our MRR and monthly recurring revenue has jumped from a very small amount to almost AUD 0.25 million a month of MRR, and we believe that 96% of our customers are going to move from on-premise solutions to cloud. The 4% are people who either are legally unable to do it or from a security perspective, they feel they can't do it. It's a very small percentage that might be military or some sort of defense services where they choose not to do that. So we see that our non-SaaS customers today. Over the next 2 years, we'll decline to 0, and that will be taken up to close to 0. And that will be taken up by assets. We've completely redeveloped our software into a micro service software platform where we can switch customers features on and off, pretty much it will, and bill it will. So we're in the process of completing that development. And all of our new futures and software development will come through on the SaaS platform, on the TZ cloud platform and our on-prem software stays as it is until customers decide to migrate into the new software platforms. Our pipeline continues to be strong. The mustard color is our current pipeline. The gray color is what the pipeline looked like for the same period last year. So you can see that our pipeline of growth is still scaling, and we're really happy with that progress. We're about to expand our marketing activities. So I'm hoping that, that pipeline will continue to grow. I just thought I'd take everyone through just a quick journey just through one of these. I've got a few of them there. So this is typically a retail journey and I'll just explain. This one is actually for an industrial company, which is WesTrac, a caterpillar dealer. So a caterpillar customer needs fair parts. They ordered these parts online from -- in this case, WesTrac. WesTrac received the order. They -- automatically our application talks to their system into their warehouse. Their warehouse sends the package to a parcel locker center and WesTrac are distributing these around the country for easy access for their customers. And then when the customers are ready to pick up the parts, he or she can go there, queue our code and pick up the parts that are required. Obviously, if you're getting parts from excavator, surprisingly, they made up of a lot of small parts, but also for WesTrac, we have very large systems for larger parts as well. So that just gives you a quick example of what we do in a, what we call, our retail journey. There's a bunch of software that goes in there that allow us WesTrac to manage stock, understand where the goods picked up, do the billing in the same process, ensure that the goods are collected, et cetera, et cetera. I probably don't have time to go through these ones, but this is for a day locker come and going into an office. And then I'll got another example of a campus. Typically, we use this one in universities where -- it's been particularly in the U.S., where students get parcels delivered constantly into the campus environment because remember, they're typically living on campus as well. It comes into a center. Their goods arrive. They are told their good to there, et cetera, et cetera. So I won't focus too much on most. I've got a quick architecture overview of all the moving pieces that we have from a software and a technology perspective. Happy to take anyone through that in more detail if they choose to. But our platform basically connects with the customer, integrating with the customer systems, allows them to control who gets access, when they get access and how they get access. We're continuing on our development program. Right now, what we're doing is building simplicity into the software so that we can scale the software quicker, deploy it faster, migrate customers faster and make it easier for our customers to use. So that is the core focus of our activities from a software development about simplify, simplify, simplify. We're continuing to invest in our TZ cloud environment, and we'll continue to do that in a way, a lot of the functionality we're building in our software is demanded by -- the good news is it's demanded by our customers, where our customers say they want this feature, they want that feature. And we have quite a substantial backlog in our organization right now, hence, why we're scaling up another development team in India to help manage the backlog of the demand we have from our customer base and the weird and wonderful things that our customers are asking us to do in an environment of e-commerce, of contactless and click-and-collect. That's it from me, Pat, that's just a quick snapshot of where we're at from an organizational perspective.

There are a couple of questions that have come through. [ Graham ] asked a question. Who are your main competitors? And what do you think your competitive advantages are against those competitors?

Well, firstly, there's a ton of people who make so-called smart lockers. When you really drive that down into what's our competitive advantage, our competitive advantage is our API-driven software. What that means is that, we're effectively like an operating system. So we can hook into our customers' applications, whether it's their stock system, whether it's their security systems and integrate into their workflows and build workflows for them. Many of our -- there's very few of our competitors that can do that. Also, because we can manage multiple devices, once again, because we're an open environment, there's very few companies that can do that as well. So it's really our integration that drives our unique position in the market, and we have very little competition in that space when that customer wants integration.

Now a couple of questions around sales pipeline, rev growth and so forth. And I do believe I just don't have the date in front of me, maybe I do. No, somebody is getting confirmed that there is going to be a shareholder briefing -- detailed shareholder briefing with TZ shortly. And so, these things can be explored in a lot more detail on that session. If anyone is interested in attending that briefing shareholder or a new investor, just type TZL into the chat box and we'll make sure that you are invited. All right. So let's have a look. Can you -- Robert ask, can you give an indication of any improvement in sales capture of the pipeline over the last 6 months as I know you've been trying to improve this?

Yes, absolutely. So I'm a quarter in, right? So we're probably 4 months in now. And we've done a number of things to get a better conversion rate. And our conversion rate was around 40%. In the quarter that just closed, that conversion rate was around 47%. So we've improved that. And that's mainly through better qualification of customer needs and also features and functionality that we're providing to customers' system. Now I'm hoping to get that -- my goal is to get that up into the high-50s. But we'll see what that looks like next quarter.

We've got time for another question. Michael has asked, do you see your company share price going above AUD 1 based on your expected revenue growth stats?

That's probably a bad question for you, Pat.

It's very [ digital ] for the CEO of the company to talk about their own share price. I mean, I guess, maybe I could ask it a slightly different question. And how -- I mean, in regards to expansion how big do you see your business growing over the next 1 to 5 years?

Let me answer that question in twofold to try and answer that person's question. And that is, as we grow our annuity base, as we grow our software annuity base, and you've seen what the first quarter looks like, and as we convert our customers into software annuity, market conventions say that -- there are market conventions for what the value of those businesses are, right? And Pat you'd be better to share that than me. But also as we've uncooked our software from hardware, what we're doing now is, we're finding companies and, in fact, in some cases, competitors that are wanting to use our software on an annuity basis. So it basically means that our software will continue to grow and expand, and that's the goal, instead of pure just locker revenue itself. And so, as we do that my goal is to get this business to tracking to AUD 100 million plus in the next few years. And that's my personal goal. I'm not saying we're going to get there or not. But the value of what those software assets look like in other companies, that's a better question answered by you. But so hopefully, that answers...

I'm going to call -- I'm going to say we call time on this. For those of you that have typed TZL in, we'll invite you to an investor briefing or a shareholder briefing, depending on whether you're a shareholder or not and can go in a lot more detail. But probably just the last point on the way out of that is, if you have a look at Mario's achieved in previous businesses that he's founded or worked for, you'll see very aggressive growth has occurred where he's been. So all right. Now we're going to turn to Karen Wellman, the CEO of Jindalee Resources. Jindalee is an Australian lithium developer with 100% ownership of the second largest lithium deposits in the U.S. Samuel Berridge from Perennial Partners discussed Jindalee as one of his favorite stocks in his Meet the Funds Manager session. And if you would like to listen to the replay of Sam's, I guess, explanation of why it's one of his favorite companies, just type replay into the question box now, and we will send that recording across to you. Now Karen, welcome to the program. Looking forward to hearing more. And you should have control of the presentation now.

Excellent. Thanks for having me on today. Right. Well, let's start with our opening picture here that we've got. This picture -- a picture tells a thousand words. So this picture is of our McDermitt deposit, which is in the United States, and that's our flagship asset, and I will spend with this presentation talking about McDermitt today. If you see those mountains in the background there, that's -- they formed the rim of the Caldera and all of this material lying in front of it up into the foreground is the 10 material that's the mineralized lithium sediment. And you can see how it gets exposed up here at surface. And in the background there, you can also see an old mercury mine. So the area is -- it's low lying scrub land, not notaries or anything, and it had a history in the past of mining. I'll skip through -- I'll skip over the disclaimers. You can read them in your own time. And just go into a bit of the snapshot of the company. So Jindalee founded in 2002. And as of Monday afternoon, we had 54 million shares on issue. Our share price of AUD 2.63 gives us a market cap of about AUD 140 million. We're pretty well funded for the next 12 months with AUD 13 million in cash and liquid assets available to us. Share registry has remained pretty steady since listed in 2002. And Lindsay Dudfield who remains our key shareholder, holding just over 25% of the company. He was our Founding Director and he's still on board with Jindalee. And more recently, we've had -- we welcomed Perennial onto our register just last year actually, and has slowly been increasing their shareholding up to just over 8% at the moment. So as I mentioned, Jindalee listed on the ASX in 2002. We're a project generator. We use a pretty simple model to add value to Jindalee shareholders. The first step of the model is to acquire ground in prospective areas for low upfront costs. We do this by being commodity agnostic and countercyclical and therefore, we take advantage of the different commodity cycles. The second step in our model is to increase the value of our projects through early exploration and target generation work. And we seek to derisk the project and take it as far up the value chain as we can internally. And then the third step is to look for a deal on our assets. So this is where we will try and look for some kind of return on our cash investments that we've put into the project, while we were developing it, but then also seek to retain an interest in the project in the commodity. So an example of this was announced just past week where a typical deal structure with our Prospect Ridge magnesite project in Tasmania, where we sold a 30% interest in the project to, I guess, GWR for about AUD 1 million in cash and shares. Jindalee is led by experienced Board. Our Chair is Justin Mannolini, who's a partner at Gilbert + Tobin. Justin has over 20 years experiences in corporate finance, as a lawyer, an investment banker. Lindsay Dudfield, as mentioned before, is the Executive Director and one of the founders of the company and he has over 40 years experience in exploration in Australia and overseas. Trish Farr has also been with Jindalee since 2002 as an Executive Director and Co-Secretary and is also on the Board with a couple of other ASX-listed and our listed companies. Then myself as the CEO. I'm also a geologist, about 20 years' experience, mostly focused on the resource, evaluation and mining side of things. We have Jimmy Thom as our Exploration Manager. Jimmy is in charge of developing up our Western Australian assets. Well, over in the U.S., we've got geologist Paul Meyer, who's on the ground managing all the drill programs and permitting over there. And just a brief overview on our assets. So over in the United States, we've got the McDermitt's lithium project, which you've seen a photo of already, which sits on the Oregon, Nevada border. We've got Clayton North, which is an exploration project that we have in Nevada. And over in Australia, we've got our Widgiemooltha project is over 1,000 square kilometers in the Kambalda nickel district, and it's got quite a low potential for nickel, lithium and gold. And you can also see some of these deal components in the Joyners JV that led to JV and the Prospect Ridge JV, which I mentioned before. So that just demonstrates that we still have exposure to those other commodities in those partnerships. In terms of the Widgiemooltha project, I won't have time to go into that in too much detail today, but [ state changes ] will be talking about that later on in this year if you follow the Jindalee story. So on to McDermitt. So as I mentioned, McDermitt is located on the Oregon, Nevada border, about 30 kilometers west of a little township of McDermitt. And it sits on the northern end of the McDermitt Caldera. So you can see in the picture, the Caldera is outlined here in yellow. To the south, we've got Thacker Pass lithium project, which is owned by Lithium Americas, which is the same sort of hosted lithium deposit. Jindalee acquired this ground in 2018 after extensive search over the United States and drilled a program of 4 drill holes just to test the concept in 2018 and intercepted lithium mineralization in every single drill hole. Between 2018 and 2020, Jindalee completed another 29 drill holes, even -- while there was a bit of a dip in the lithium market, we kept pushing this project along. It's worth knowing at this point in time too, that McDermitt's sediment hosted lithium project. They sometimes are referred to as clay deposits. So they're a bit hard to go hard rock and grow projects that most people would be [ accustom ] talking to in the lithium space. But these projects are large and homogeneous and contain massive amounts of lithium between the McDermitt project, which is 10 million tons of LCE and Thacker Pass is about 18 million tons. This is a very rich to Caldera. We kind of think of these as the equivalent of the copper porphyry in the lithium world. So after completing 29 drills holes in April last year, we announced an updated Indicated and Inferred Mineral Resource, that was 1.43 billion tons at 1,320 ppm lithium to give us 10.1 million tons of lithium carbonate equivalent. This split, about 20% of the resources in the indicated category and 80% is in inferred. It's also worth noting that we have an exploration target surrounding the mineral resource. And if you look at the midpoints of the exploration targets, it's of a similar size again, which is one of the reasons why you can see that there is potential for this project to really grow in size. I also mention that at the time that we announced the resource in April, this made it the largest lithium deposit in the United States. It's since been overtaken by Thacker Pass deposits, which is to the south, making it the second largest. In September last year, following on from the resource update, we announced the results of a preliminary scoping study in McDermitt. Due to our reliance on inferred mineral resources, we were constrained by the ASX regarding the level of detail that could be put out to the market. But there's a couple of things that need to be noted. One is that, our -- when we started the project, the long-term prices for lithium were a bit lower than they are at the moment. So open pit optimizations are based on $11,000 a ton lithium carbonate price. If you've been paying attention, the lithium prices are gone for a bit of a run over the last 12 months and spot prices have been as high as $48,000 tons -- $48,000 a ton lithium carbonate. So you can see why we think there's plenty upside in this project. We -- there was a used stage approach to mine to try and maximize revenue early in the project life to reduce payback. Our strip ratio is pretty low at 1.2%. Some of the key outcomes of the study overall was that the economics of the project were extremely positive even at the $11,000, $12,000 mark. Therefore, it's justified our ongoing commitment and investment in this project. A series of recommendations also came out of the study, which -- for each of the technical aspects of the project, which has enabled us to develop a highly focused work programs for ongoing resource drilling and metallurgical test work. Our most recent drill program was completed in December just last year, so just 2 months ago. We announced some results this morning. The results have been quite good. The dual program focused on infill drilling more of that inferred resource. So we can look at maybe redoing the study with some -- and be able to put out more of the financial metrics. So the results have been pretty strong, including 13.7 meters at 2,140 ppm lithium from 23 meters below surface and 29 meters at 1,800 within 25 meters of the surface. The thematic section here has a 5x vertical exaggeration because there is such a large grade continuity between these drill holes. These drill holes are about 400 meters apart. You can see there's a [ volcanic basement ] and the sediments -- the mineral -- sediments are mineralized from the surface, which is why it's quite positive for open pit economics. The sediments hosted lithium deposits are not yet in commercial production and because they've got quite different geological grade and metallurgical characteristics, it's difficult to compare McDermitt to more well-known hard rock lithium assets. But what we can do is make direct comparisons to our [ peers ] in this space. So this graph here is charging the tons on the y-axis versus the grade on the x-axis. And the size of the bubble represents the amount of contained lithium within the deposits. We've tried to do all these comparisons based on roughly a 1,000 ppm cutoff grade with the exceptions being ioneer's Rhyolite Ridge, which is -- uses the Boron cutoff, and Lithium Americas Thacker Pass, which uses a slightly higher lithium cut-off grade. But what you can see is that, our deposit is on par with our peers, but our market cap is a lot strong of this group. So that's one of the reasons why we really believe that Jindalee presents a great investment opportunity to the market. I won't spend a lot of time talking about demand and supply because I think we're fairly familiar that there is a huge forecast demand for battery technology coming, and therefore, the chemicals that are going to be required for batteries and they can't currently be met by supply. McDermitt is strategically placed in United States, and we have bipartisan support for our U.S. critical minerals projects, which include lithium. So Biden's pledge for 0 emissions by 2050 has really helped accelerate the electrification of the U.S. and strengthened their desire to establish domestic supply chains, which is why we believe McDermitt well strategically positioned being in the States. We take our social responsibility seriously and have engaged several highly regarded consultants to assist us in ensuring that our impacts to the environment remain minimal, while increasing opportunities for involvement with the local community. At the moment, our dual programs, the majority of them have been conducted on existing trucks. This is farming ranch land, so there's a lot of tracks and fence lines around. So we minimize the amount of ground [ disturbing ] activities we have had to do. We're currently building internal capacity to increase our community engagement over in the U.S. And this picture over here on the right just shows you that's the picture of the Mercury Mine that you would have seen the picture at the very start right on the edge of our [ 10 meter ] boundary. So the area has a long history of mining. Finally, why should you invest in Jindalee? I mean, Jindalee has presented fantastic opportunity. We have a world-class asset in the McDermitt project, and it's quite incredible lithium resource. The project is strategically positioned to take advantage of the U.S. domestification of critical minerals. It's a large scale bulk mining opportunity there. We at Jindalee have a fairly low cash burn rate. We've been around as a project generator since 2002. So we've got this track record of creating value as we go. And finally, we're not a one-trick pony. We've got some quite exciting projects in our back pockets such as the Widgiemooltha project, which we look forward to developing concurrently with McDermitt over the next 12 months. And just our references some -- and yes, thanks for listening.

Thank you very much. If anyone has got a question, a couple of come through, put them into the chat box. The first one coming through -- is, in what year do you expect the U.S. and WA projects to return a positive cash flow?

I mean, we're essentially a project generation explorers. So we're not going to be going into production as such and have that sort of well-established cash flow. And we will look to maximize -- we return value to our shareholders in some other ways. If you go back through the history of Jindalee, we paid a dividend out of AUD 0.55 back in the late 2000s. So that was based on a positive deal being made out of Energy Metals. So you can look forward to some opportunity like that coming up.

We hear a bit about Nevada being a Tier 1 jurisdiction for mining, not as aware about what Oregon is like. I mean, what is it like improvements for projects in Oregon?

Yes, that's right. Oregon and mining aren't necessarily 2 words, they sort of going hand in hand with each other. When we first picked up the project in 2018, one of the reasons why it was available was because there was a bit of a perception that it was going to be difficult to even explore the ground, potentially develop a mining project down the line. I guess, our experience to date has been that you can progress through the exploration process. You just need to take a bit of time to understand what the expectations are from the various agencies in terms of the government and environmental things. But pretty much we've managed to build some pretty key relationships with the Oregon State Department and the Federal Bureau of Land Management. And that's been really important to our success to date.

And what are your plans going forward for the Australian assets?

Yes, it's a good question. We're really excited about our Widgiemooltha project. And we've been busy in the background working up our nickel and gold and lithium targets. So we've had a bit of advantage that a lot of those tenements have been seeing in the application stage. So we're sort of pushing them forward to grant at the moment. But in the meantime, we're getting ready to hit the ground running. The Widgiemooltha project is like about an hour to half of Kalgoorlie, an hour's drive. It's a pretty exciting district with a long history of exploration and new discoveries. Our Chairman has covered about 1,000 square kilometers, and that's in and around projects such as Mincor's new Cassini nickel mine, Anglo Australian's Mandilla Gold Project and Essential Metals lithium discovery is all around the [ pioneer time ]. So now we're pretty excited and definitely see good news for on that happening in the next few months.

Excellent. Thank you. I think we're going to call it time. There's some very good questions that have come through and I'll hold those across to Karen, maybe someone in her team who can lay eyes with some answers back. But we now lastly, we'd like to welcome Gianmarco from the -- the Director of Vection Technologies, a virtual reality company, which is set to grow amid digital transformation megatrends. Andrew Chapman from Merchant Group highlighted Vection as one of his favorite stocks to watch. And if you want to have a look at Andrew's discussion on the company and why he put a port as one of his favorites, again type replay into the question box now and get our recording across to you. Gianmarco, I thank you for your time, you should have control of the presentation now.

Perfect. Thank you, and thank you all for joining today. So first of all, I'll try and tell what is Vection Technologies. So Vection Technologies is a global technology company, focusing on integrated XR. So integrated XR is essentially a combination and collection of technologies to enable the Metaverse. So I'll touch that -- on that in a second. But first of all, let's pinpoint on the problems that we're seeing today on the market because we are an enterprise-focused company. So we provide solutions for enterprises that are looking to join this Metaverse trend, so they're future of technologies, they're future of the iterant, the Web 3.0. So first of all, we live in a time of uncertainty. So we -- as you all know, we are going through a global pandemic. We're dealing with remote workforces as there was a presentation earlier by Mario that was mentioning this. So you got more and more companies that are looking at remote workforces and managing the employees, the global employees without having them in the office in presence. We've got net zero emission targets, again pushing from the presentation that we just listened to. And we've got another key problem, which is systems interoperability, meaning systems that talk to each other and work organically towards solving certain problems. And the solution to all of this, and this is what we're aiming to achieve is integrated XR. So the [indiscernible] integration. So integrated XR essentially is the collection of the company's technology solution. So we're going from virtual reality to 3D, to augmented reality, to infrastructure, to artificial intelligence, to ICT computer design. So all these technologies that when brought together in a seamless way provide the transformational benefits for companies who are looking to digitalize their processes. And by doing this, we're solving problems for this company. So this integrated XR proposition fits perfectly within the digital transformation trend. So this $10-plus trillion spent on digital transformation from 2019 to 2024, we're seeing $1 trillion plus spending on future work technologies. And 50% of the total technology spend will be on digital transformation. So we're up from 42% in 2020 by 2024. But again, what is XR? So XR is an emerging umbrella term. So essentially, it integrates augmented reality, virtual reality and mixed reality in one key proposition to the market. And the XR market was valued at over $26 billion in 2020. And it's expected to reach USD 160 billion. And our vendor market, we're seeing some pretty, let's say, hefty predictions in terms of this industry. So the XR industry, the Metaverse industry and where everything is going in the marketplace. So the integrated XR pillar, so what essentially we do in the marketplace today. So we're focused on the development of XR technologies that integrate with existing and emerging systems and technologies. And I'll stop here for a second because this is very, very important because it goes and flows on to the fact that it enables [ about ] integration. So everybody today in the market is talking about the Metaverse. And it's a very broad concept, and it's something that is going to take 5 to 8 years to actually be achieved. But in the meantime, we'll see companies, and we're already seeing it today on a day-to-day basis from our global offices in Asia Pacific, Europe and the U.S. We're already seeing this. So companies that are looking to adopt the foundational elements of the Metaverse. So as we all know, there's a lot of hype, obviously, around the Metaverse. And a lot of companies are preemptively claiming to be Metaverse companies or that they're creating the Metaverse. What we're doing is, we're focusing on real foundational elements and building these elements within enterprises to assist them in their journey towards the Metaverse. And the Metaverse, again, aligned with integrated XR is an example of combinatorial innovation. So it links and integrates augmented reality -- augmented reality cloud, the Internet of Things, 5G, artificial intelligence, when looking at digital humans, we're looking at NFT, non-fungible tuck-ins, digital commerce or line shopping. So all these foundational elements are necessary to build the Metaverse to come, which is -- which essentially is a way where people and companies can replicate or enhance physical activities. So they're transforming the day-to-day physical activities into a digital environment and they're connecting the physical activities into a digital environment, creating what another key trend terminology, which is the phygital, so essentially the combination of physical and digital. So we're focusing on this. So we're creating through our own proprietary technology XR technology, we are creating the foundational elements, and we integrate these foundational elements with being the existing companies' processes. So it goes from design engineering to maintenance, to manufacturing, to sales, to aftersales. This -- we care about the whole value chain of companies that are looking to join this journey into the Metaverse and really enhancing the operations and really creating very tangible benefits for their company. And by doing this, we're also looking at vertical applications. So as we all know, different industries require different features for different problems, and we need to essentially verticalize our solutions and our processes and the way we help these companies join the Metaverse trend, but really understanding what are the key pain points of this company. By doing this, we've already established a number of verticals from healthcare and pharma, from ADC, so architecture, design, construction, real estate to media and communication. So we're helping companies in this path. And in the next coming months, and yes, we'll be looking at adding new verticals into the company. And this whole process drives the adoption of our XR. Between 2022 and 2023, we're looking at really growing the company. So we are right now in the global dominant phase of our strategy. So we're looking to accelerate the adoption of integrated XR organic growth across verticals, markets to create exponential synergies within companies, processes and operations. And we're focusing on a few key points. So XR technology is obviously our key focus. It's essentially the focus of the company, integrated XR. Integration flows into XR tech. We've got verticals. We've got geographical expansion. We are looking to add people. So significant skill sets and significant experienced people that are going to join the company, and we're looking to add new clients and also grow with our existing client base. As this industry is fairly new, so we are just at the early stages of adoption of XR technologies in the Metaverse, what we're seeing is the market is highly fragmented globally. And this creates a big opportunity to perfection to really move into this subsector with a very strong balance sheet and acquire companies that are small in size, but that can enable us to grow fairly quickly and to really grow and become a global player in the XR space and in the Metaverse to come as well. And to really become the true leader in the XR space, we need to expand our XR development capabilities. So we're looking to add people. And we're going to add people from development, from management, and we're going to do this both organically and inorganically via acquisitions as well. And this strategy also flows on from obviously acquisitions. And acquisitions will enable us to really grow. So it's -- inorganic initiatives to drive organic growth. So by acquiring companies, and as I was saying, the market is very fragmented, we are able to quickly get access to clients that are the natural adopters of our integrated technology. And this is a very strong opportunity to scale for us. It's a very strong opportunity to grow the company globally. And we're looking to do this in the 3 key geographies where we're present. So Asia Pacific, Europe and America. So we're looking to really grow the company from a global standpoint to really achieve that global dominant messaging that we put to market. And integrated XR is an integration layer, as we know. So we've got the different technologies, different proprietary platforms that enable access from data, which could be IoT service networks, existing databases, hardwares and other systems and softwares and give an application outcome via the hardware that everybody uses from a day to day from receipts, smart devices, but also with this new trend of XR by wearable devices, so virtually reality, augmented reality. And we know a lot of players and big players are now moving into how to manufacturing of these specific devices. And Vection has got a very strong history of delivery. So we commenced that in 2017 with the renewed Board of Directors, the market cap was just $12 billion at the end of 2018 when we were commencing the strategy. In 2019/2020, we commenced on a transforming strategy. We're really focused on XR when the -- not even the concept of the Metaverse was out in the market. So we are front runners in this industry. We've been focused on this for a long time. We acquired a number of companies. We established a number of vehicles during the year, and we're now in the leading phase. So to become a global leader in a space and the focus is to really create value for shareholders and to really become the front runners in the XR or integrated XR space. We've got a very strong leadership team. Our leadership team is very peculiar because we're based and we cover a whole global presence from Australia to Europe to the U.S. So the Board of Directors is present in every single geographical -- say, geography that we cover. And this enables us to really have a very strong understanding and knowledge of the industry and very strong knowledge and understanding of the companies that we're targeting. We also were lucky enough to create a small, but growing strong advisory board. We were joined by Dr. Siegmar Haasis. He was for 27 years the CIO of Mercedes-Benz Global. We're lucky enough to have Vittorio Terzi to join us in this strategic growth for -- from an advisory standpoint. He was the former Managing Director of McKinsey Mediterranean, so a very strong network and knowledge base. And then we've got a very strong management located globally to really assist the company in growing. From a corporate snapshot, we've got today, I think we're circa $0.14. We've got circa 1.1 billion shares in issue. That gives us a market cap between $140 million, $150 million. We've got $20 million cash at bank and this strong cash balance really enable us, and will facilitate the aggressive growth strategy that we're undergoing today. In terms of the quarterly that was just released just on the 31st of January, so just on Monday, we've experienced 420% growth in cash receipts for the half year when you compare it to the full year of 2021. We are on track to deliver on our revenue guidance of $17 million to $19 million for the full year FY '22. And this is compared to audited revenue for FY '21 of circa $3.5 billion. So yes, we are on a, let's say, on a very strong trend that [ has got years ] in the making, but we're creating real tangible foundational benefits for our customers, who are looking to us to really enable them to innovate and join this trend moving forward. And our vision is to really create an integrated world where integrated XR is the foundational basis for the creation of the Metaverse or enterprises that are really looking to revolutionize how they do business from a day-to-day basis and bring them from a physical world into a digital world. And I think I said perfectly in my 13 minutes. So thank you.

Lovely work. Julie has asked a question that you kind of answered regarding the increase in cash receipts. And what would -- could you give more color around the driver for this improvement?

So in 2021, the company -- in 2021, the company really focused on growing its sales base. And this enabled -- and this was both from an organic standpoint and inorganic standpoint. And thanks to the combination of the foundational elements that I was mentioning before. So we're going from XR to infrastructure to artificial intelligence, and we're combining this in a package, which is the integrated XR focus of the company. So we were able and lucky enough to really grow this messaging with our customer base. And customers are really looking at adopting these new technologies to innovate and to really get into the path of joining the Metaverse. So simply put, the reason of the cash receipts growth was because of the work performed during 2021. And now in 2022, the first half of the year, we've really been focusing on the next phase of growth. So we've been focusing on the creation of partnerships with Fortune 500 services companies. We've been focused on working with historical clients. We've been looking at expanding globally. So we've been looking at the U.S., Europe, at Asia Pacific. So we're really creating the foundational basis from let's say, from a corporate standpoint, from an operational standpoint to really enable us to push the informatics messaging to our clients who in turn then look at adopting different elements of our integrated XR solution suite. And it's very important also the next step phase of our growth, so they do us -- so we're really looking at growing in the U.S. in the next coming months. This is going to be both from organic standpoint and inorganic standpoint. We're looking also at really improving our investor messaging within the U.S. And we've got some very cool and exciting initiatives in the U.S. coming shortly.

I'm going to ask a couple of questions, hopefully, quick fire answers, if we can, and otherwise send them through to you. And if you've got any comments, we can circle them back to investors. So Anthony has asked sort of could you give more color around the time line on acquisitions?

I really cannot answer that. But let's say that in the second half of the fiscal year, so let's say, from February to June, we expect to have a number of targets to come to fruition, and I'll keep it at that for now.

And just very quickly, could you give more color around your revenue model, SaaS consultancy, contract lengths et cetera?

Awesome. So where we are today in a revenue model strategy, we're today at the phase where we're really working closely with our clients in the integration piece. So there's a lot of investment going into integrating our technology with existing and legacy systems and software. So we're today essentially just creating the foundation. So a lot of our revenue is, let's say, one-off consulting, you can call it. But at the same time, this is creating recurring revenue for the coming year. So our traditional kind of contracts will usually give us around 20% of any given contract in recurring revenue for the years to come. But we're looking to really grow this significantly over the next 12 to 18 months to really grow our recurring revenue base.

All right. Thank you very much for that. And thank you to all the presenters. I thoroughly enjoyed the presentations today. For the next Meet the CEO sessions, we're joined by the leaders of Global Health Limited -- Insurance Limited. And next Friday, at 12 noon, we've got Meet the Manager session, and we're talking to Martin Pretty, who's the Founding Director of Equitable Investors. So type insider to make sure you're booked into the next Meet the CEO and the next Meet the Manager sessions. Reach we provide sophisticated professional institutional investors with a range -- a broad range of deals that are focused predominantly on fast-growing Australian businesses. So we give you reach to the Board and senior management, access to curated data rooms, and we support you to effectively complete your due diligence. Likewise, we aim to maintain ongoing access to the business as you invest in and give you the information and the answers you need to stay abreast of substantive developments. Last year, we led 28 deals and investors really value the access to the quality deals we offer, but we stay involved in the businesses and ensure that we keep communications channels open. Eagerly, we attract high-quality businesses because of the breadth of our corporate team as well as the fact that when we complete our DD, we can provide capital in a matter of days instead of the alternatives, which can take many months. So we have some exciting opportunities coming up and available now. We will be closing off an IPO on Far East Gold, which is a gold and copper company we explore with a strong portfolio, a couple of projects that have got the potential to be globally substantial assets. And the directors on the Board include people like Justin Werner, who's the MD of Nickel Mines, who -- which is a $3.5-plus billion company, and he's also the largest individual investor in the company. We are going to be hosting an investor briefing with the Chairman of Far East Gold today at 2:00 p.m. So we're putting a link in the chat box. You can click on that to join or you can simply type FEG, FEG into the chat box now, and we'll book you in. If you don't have time to get there today on short notice, and you would like the prospectus sent through, type IPO in. This is [indiscernible] very popular a lot of demand coming through. It may close before Friday, given the amount of demand going in. We've got a good cornerstone in there and some -- a lot of institutional interest. So -- we think it's a really interesting one, again, type FEG to join us on the webcast today or IPO to have the prospectus sent through to you. Next week, we are opening up an investment that we've been looking at as, I guess, looking in reaction to inflation, and it's designed to generate returns based on the divergence of value stocks and growth stocks. It's a U.S. basket of stocks that we've put together, and it's designed either to be a hedge against inflation or if your view is that, I guess, like ours is that expensive growth stocks that have got a lot of debt and rely on new money coming in to grow their businesses, we'll find it harder than established value companies trading at lower valuations. And so over the next couple of years, if there is a substantial event, this investment can do incredibly well. But if there's just that divergence or dispersion between the 2, this is a way of taking a position. So if you're interested in that, you can just type in deal, and we'll send you through the prospectus on that. So if you like the dispersion investment, please put your details in by typing deal. And we also are opening in up a pre-IPO convertible note, which will be into an Australian-based rare earth and vital minerals company. It's one of the largest -- world's largest critical mineral projects. It's based in Victoria. And it is a very exciting project. We've been involved with the company for some time. They have appointed Canaccord as their lead broker and they're on a pathway to listing and Reach will be lead manager on the pre-IPO campaign. So again, type deal in, and we'll make sure we get information on both those deals across to you. If you're dealing with an adviser at Reach and you've got an established relationship, you can just contact them, otherwise, by typing in deal, get in contact to make sure we provide you with that information and anything else that you need. So excellent. And -- but look, that's it for me today. Thank you very much for your time. A recording will be sent around so shortly. So keep an eye on that. If you want to pick up on any of the previous events that we run, you can go on to our website, and we have a library of everything that we do. So you can pick up on that there. And that's all -- they're packaged up for you. So thank you for taking the time. Bye for now.