Cambridge Cognition Holdings (LSE:COG) — 2025 Interim Results

0:01 Good morning, and welcome to the CAMBRIDGE COGNITION HOLDINGS PLC Interim Results Investor Presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged, and they can be submitted at any time using the q and a tab situated on the right hand corner of your screen. Simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, company can review all questions submitted today and publish responses, which is appropriate to do so. Before we begin, I would like to submit the following poll. And I would now like to hand you over to chief operating officer, Rob Baker. Good morning to you. Good morning. Thank you, Alex, and good morning to everyone. And thank you for joining us today at our headquarters here in Cambridge.

0:46 If you've ever been to our office before, you might recognize some of the devices that are sitting behind on our shelves here. They're a small reminder just how many generations of hardware our assessments and tools have worked across in the years, and it's a great visual cue for longevity and the adaptability of our technology. I'm Rob Baker, chief operating officer and senior executive director here at Cambridge Commission. With me is Ronald Openshaw, our chief financial officer and head of corporate development. Good morning. Over the session today, we'll take you through the interim results, a brief recap of the company, the markets and strategy, and a walk through the financial performance and operational highlights for the first half. We'll also touch on fundraising and recent board changes, wrapping up with an outlook and then following up with any questions that you may have for us.

1:36 So starting with built on rich curated data and deep technical expertise. This statement really reflects on what's at the heart of this business. It's the foundation that allows us to scale to meet growing global need for diagnosing and treating brain health. I want to take a moment to recap our core offering, especially for those who may be less familiar with Cambridge Commission. We offer a modular platform built around three core capabilities. First, digital and voice cognitive assessments. These are clinically validated and capture precise markers of cognitive function. We've been in this space for decades, continuing to push the adoption of objective endpoints in trials, This remains our leading product line.

2:26 And as market leaders, we're proud of the progress we've made this year, including exciting wins that combine both voice and touch based assessments. And it's this multimodal approach that is also supported by high impact collaborations like the global Alzheimer's platform BioHermes two project. And even more exciting is we're seeing our assessments being combined with the likes of blood based biomarkers in projects like AI Mind and AD Riddle. This opens up huge potential in early detection and precise medicine. For anyone wanting to deep dive on dive deep on these topics, we are actually hosting a webinar in late this October, and details are available on our LinkedIn page. Secondly is our electronic clinical outcomes assessments, ECOA.

3:12 We've developed a highly configurable platform with comprehensive library of validated scales, customized and deployed across the trials that we support. Combining these with our cognitive assessments enables smooth, efficient data capture, making trials easier to manage, especially at scale. Thirdly, data quality management. This is where we believe we really differentiate ourselves. We bring together data services, scale management, and analysis enhanced by our AI powered quality check platform, Aqua. We've also launched a speaker identification tool, which helps detect dual enrollment across trials, most recently updated, and a critical change in multi site and a critical challenge in multi site studies.

4:02 And finally, we offer rated training services also launched earlier this year to support quality and remediation within clinical trials. Together, these three modules form one unified platform designed to meet the needs of both researchers and regulators, and it's already being used across high profile global trials. So where does this all play? Back in May, we spoke about the growth we've delivered in clinical trials and academic space, and we've seen that continue through the first half. We also flagged our intention to expand into health care and consumer wellness. We've made solid progress in those areas. We look at our market through a flywheel model where each segment feeds into the next and builds momentum.

4:52 It starts with research where we've been for nearly four decades, and this is where our tools are validated, tested, and refined in real world settings supported by the 3,000 plus publications and counting as a result. We're now seeing a return to year on year sales growth in this area with new programs in place to build on this momentum. That research then feeds into clinical trials where the same tools support regulatory grade data collection, especially in high risk, high cost CNS studies. This remains our strongest commercial segment and continues to account for the majority of our revenue today. From there, we move into health care, bringing clinical grade technology into everyday care through pathway integration and partnerships.

5:39 We're seeing increasing demand for tools that support early detection and ongoing cognitive monitoring, especially in the context of those new disease modifying therapies. We've reassessed this market, and we're now leaning in. That leads us into consumer wellness, where the opportunity is truly scalable across thousands or even millions of users. We're seeking to embed our tools through integration, licensing, and strategic partnerships. As the volume grows, pricing adjusts, creating a scalable reoccurring revenue model, And the value generated at scale feeds directly back into our brand equity, accelerating the entire flywheel. We're making material progress across all four segments.

6:27 This opportunity isn't just broad, it's interconnected, and our platform is designed to support every layer, driving cognitive science into clinical impact. So how are we set up to deliver on that opportunity? Our strategy is built around four pillars. First, a trusted CNS provider. CNS trials are high risk and high cost. We are a proven entity having delivered over 500 trials and counting with consistently high sponsor satisfaction. Our brand is trusted, particularly among tier one pharma, and our platform reduces operational risk while supporting complex delivery. We'll continue focus on scaling clinical revenues and building the pipeline with that tier one focus.

7:16 Second is brain health technology leader. There's a growing industry need for validated digital endpoints. We developed multimodal IP over many years, and we're now deploying it into health care and consumer via that API platform and Health Care Connect platform. We're also translating into ventures and spinouts like Monument, which has had some great milestones this year. We aim to be the provider of choice across the health care life cycle to diversify revenue, accelerate growth, and build equity value. Our third pillar is around customer impact. Sponsors expect efficient, reliable, global delivery. This is all about execution, bridging r and d with clinical practice, delivering continuous improvement, and scaling with quality and efficiency.

8:08 That's how we drive profitable global growth. Fourth is an empowered team. Innovation and execution only happen when you have aligned purpose driven people. We've built a culture that's curious, collaborative, and committed to impact, and that's what makes this strategy not just executable but sustainable as well. And with that, I'd like now to hand over to Ronald who will talk you through the first half performance and financial highlights. Super. Thanks, Rob. So what I'd like to do is quickly go through the key points, and then what we'll do is take a look at the profit loss count and balance sheet and talk through that financial performance. So the first thing that we did when there were changes last year was we promised new sales and growth in new sales because it's those sales that drives the order book and that order book that eventually drives revenue.

9:02 The increase in the order book is tangible. We can see it. And that is going to underpin revenue growth over the course of the rest of this year, next year, and into following years. The pipeline remains very strong. That's good because the sales team have built that to be able to turn it into new sales orders as time progresses. Without the pipeline, they can't sell. If they don't sell, we don't generate revenue. Over the course of the late twenty three and into the beginning of twenty twenty four, the company took real steps to address its cost base following the two acquisitions and to streamline the business. And the cost base is now positioned clearly for sustained profitability. You'll see in terms of the cash flow, a reversal in deferred revenue, which drives cash flow importantly going forwards.

9:50 So this really is pushing to our strategic objectives. So let's turn to the p and l and the balance sheet in detail. What you'd see is that we drove 6,900,000 of new sales orders in the first half of twenty twenty five. If we compare that to the first half of twenty twenty four, it was 3,300,000. So we've more than doubled that. We also gave you an update in the interim statement that by the day before we published, we'd reached over 8,000,000 in total selling by the time that we put the results out. That leaves us with an order book of 16,400,000 at the end of June, which is up from 13.6 at the year end and 14.6 at the beginning of at the end of the first half last year. So we're seeing that selling now driving into the order book, and that pushes forwards.

10:47 The challenge has been on the revenue line. Yes. Revenue's down first half to first half, and it really is as a result of the weakness in the opening order book at the start of this year. Rebuilding that order book is critically important. Everything we work on is a long term contract, and therefore, we can't recognize the revenues cash is received. We have to revenues recognize revenue as we do the work. All of this feeds in with the reduced cash with the reduced cost base to an adjusted EBITDA loss of naught 400,000. At the Bordent, the management team, we use adjusted EBITDA as our core measure of profitability because it so closely tracks with cash flow when we then look at movements on the balance sheet.

11:36 At the end of the first half, we finished with 400,000 in cash, down from the 1.3 at the end of December, and we'll touch on financing in a minute when we look at the fundraising that we've recently completed. The debt facility reduced to 1,500,000 at the end of the first half, down from 1,900,000, and we're on track to have that repaid by September of next year. Over the rest of the balance sheet, what you will see is that change in deferred revenue. So at the end of the first half, deferred revenue was 5,700,000 on the balance sheet, and that's up from 5,500,000 at the end of twenty twenty four. It's that negative slide in deferred revenue, which eats cash while still generating revenue because we've been paid for it in advance, and now we get to recognize it again. This is a major step forwards for us because it's over two and a half years since deferred revenue stopped falling. We're pleased to see that that stabilized, and we'd hope to see that increase as new selling pushes everything forwards.

12:45 K? The critical thing for us when we started to present this was to be really transparent with all investors. So we've given you more data over the course of the last few presentations to really reestablish that trust. The top graph on the right hand side, which we affectionately refer to as the blue and orange chart, shows the difference between new sales orders and change orders. Change orders are great in clinical studies. Almost every clinical study is subject to change order, and almost always that's positive, but it doesn't reflect the underlying selling of the business. Over the last six quarters, what you can see is a marked shift from the first three quarters of last year where the selling of new business was very low back to a recovery in quarter four, seen again in quarter one, and then what we've expected is a good quarter two.

13:48 Over the course of the normal year in the clinical studies market, quarter four and quarter one are strong. Quarter two is usually slightly weaker than quarter one. Quarter three, because everybody's on summer vacation, typically tends to be a quiet quarter for new selling, and then we're back into quarter four. What we've said is that we've had probably the best quarter three so far. We're obviously at the start of the final month of that, but both July and August have been very strong for us. The chart on the left hand chart side shows the total value of the order book, and what you'll see is that marked recovery starting in the autumn of last year. We then show you the flow of that order book as it should be recognized in revenue.

14:35 And clearly, at the beginning of this year, we started with an order book of 13.6. At the end of this first half, we have an order book of 16.4, of which we'd expect to see 4,500,000 recognized as revenue in 2025, with 5,800,000 to be recognized in 2026. Importantly, and with six months to go from that reporting point, that 5,800,000 is larger than we had at the start of 2025, and therefore, we would expect to see 2026 revenues grow substantially from where we're at today. Thank you. So, Rob, would you like to talk about that mix? Yeah. Because it's an important, sort of feature of how we've had a very targeted outreach of our tier one top 25 pharmaceutical companies, well funded, well established in that large pharmaceutical space as well.

15:34 And so what this slide sort of represents is how we're continuing to build on that commercial momentum and actually develop and sustain a strong and diversified order book, which is really important in any volatile space. But starting on the left hand side, this represents our order book by customer. As we represented previously when we spoke about our targeted tier one focus, we had that recycling of our commercial strategy. We had a refreshed resource come in, new sales teams that have come in with a very purpose driven approach with that CNS expertise that sits in there as well. And over the course of the last twelve months, proportionally, most of those deals that are coming through are with those larger tier one pharmaceutical companies. So our order book today, over 48% represents from that tier one space with the remaining distributed across well funded biotechs all the way down to the academic income that we see from that perspective.

16:31 Stepping on through to the next piece is around the clinical trial phase. So importantly, we've got a well distributed trial phase, you know, almost by thirds set between phase one, phase two, phase three, and they're made up of earlier pieces and academic as well. Now this is really important because the sort of features of a different of a study in a different phase are key for revenue recognition and cash generation. So by having a mixed balance of phase one, phase two, and phase three studies means that that supports that more balanced revenue recognition model as well. And finally, one that we take great pride in is looking at how our technology is being applied by disease. There's a big section there of 40%, and that is actually representative of disease that represent less than 5% grouped together in other.

17:20 And this what this speaks to is the variability in the application, the broad application of our technology when looking at disease. We are not a specific disease area specialist. We've actually got that broad application built and supported on the back of the academic research and the clinical application that we've seen and spoken about in our flywheel because that really speaks to the ability to be able to widely serve the opportunity and the growth within the wide CNS sort of market, and we'll speak about that as we come to the closeout. So we've got that broad application. We've got the tier one focus to execute, and we've delivered on that. And we're diversifying that exposure to limit any impact of any one individual study. And those high quality clients that we can engage with, we can land our services, we can expand, cross sell, and upsell, and then also replay the successes that we have through that operational delivery to make sure that we're going out and being able to broaden our application in their wider pipeline and their platform from that perspective.

18:22 So that well funded biotech and pharma partnership continues to be a key focus for us. We're excited about how that order book is sort of emerging. Yep. So let me pick up on the financing that we announced concurrent with the interim results last week. When we put the trading statement out three weeks, four weeks ago, we went and spoke to all of the key shareholders, the main institutional investors, and we were asked one question almost universally. Do you have enough money? At that point in time, we had done our homework. We'd looked at the cash flow forecasts, and we said, yes. We do have enough money. It's tight. There's limited headroom. But, yes, we can get through to sustained profitability and sustained cash flow with where we're at.

19:07 Then we got a call from one of our top two investors by size, and he said to us, look. I want I can see that the share price is under pressure in the market in large part because there are concerns over the group's liquidity. I'd like to remove those concerns. I'd like the management team to be able to focus a 100% on driving new business and doing the things that we need to, not managing working capital to the nth degree. At which point in time, we talked to brands using the, the authority granted to the company at the annual general meeting to use the 10% disapplication of preemption rights to conduct a quick fundraising. And in doing so, what we did was we raised a little over £1,000,000 net of expenses, and we did it fast.

19:55 From start to finish, it was a little over two weeks. We did it cheap. The total costs of that fundraising were less than 60,000 overall. And that speaks to the ability to be able to execute that fundraising to strengthen the balance sheet and actually do it in a way that benefited the business. To demonstrate the confidence that the investors and it wasn't just that investor. We spoke to a number of the other leading institutional investors and asked them if they wish to participate, and a number of them did. And we thank all of those people for doing so. What we talked about was the fact that as a group, the board, the management team, and our institutional shareholders all believed that the share price was oversold at that point. The company was undervalued, and therefore, together, we put our money where our mouth was, and the fundraising was conducted at a premium to the market price prevailing at that point in time.

20:57 Almost half of the members of the board, the management team, decided also to put their money where their mouth was and participated in that fundraising, investing directly in that financing round. What that does now is it puts us in a position where we can focus on the number one job that we have, which is to drive sales, to fill the order book, to drive revenue, to generate adjusted EBITDA, and positive cash flow. That's our sole focus because we want to take this company to the point where it's a truly sustainable business given everything that's going on in all four pillars of the business and the excitement that we feel. So stepping on into to board changes, at the same time last week, we communicated changing the executive directors.

21:52 So myself, formally admitted to the board as senior executive and chief operating officer. There's obviously the attention that we signaled as well for Alex Livingston Lirma to join the board as soon as practical, and Ronald Openshaw joining us from that interim state of CFO to the permanent CFO role and also taking on the head of corporate development functions as well, working closely with myself as we address some of those wider market opportunities and develop the wider kind of positioning of the business. From a nonexecutive director's perspective, Richard, Bunge, and Deborah Leaves, who obviously communicated they will leave the board on the December 31, and I would like to sort of express our thanks from an executive and a wider business for the stewardship that they've brought over the course of their time with CAMBRIDGE COGNITION and recognize the value that they brought in that space.

22:42 From a chair's perspective, Steven Powell has also indicated that he'll be retiring at the time of the twenty twenty six AGM. And at this point, we are obviously going through the process of making sure that that recruitment into that role will be effectively filled to steer and support and build on the strong and relentless work that Steven has done over his tenure both in an executive role, but also in his role as a chair to continue the momentum and the direction of this organization and support us unlocking the full potential of the organization. Absolutely. So I'd like to sort of step us on now to just sort of close and recap with the outlook. We're in a strong position, and we believe the market dynamics are on our side. The CNS market is active.

23:28 It's got strong pipelines. We're seeing continuous m and a activity and trial growth in the areas of our focus. And, again, recalling back that diversified application of our tooling is really important when we think about the CNS market as a whole. Demand for digital assessments is rising in both their single application, their application in multimodal, and also supporting with the likes of the blood based biomarker element as well. We're well positioned in strong collaborations as well as our clinical and academic work to address and be positioned correctly for that opportunity. And, of course, the aging population is keeping brain health firmly on the agenda in a number of areas. Operationally, we've doubled new sales orders in the first half. We've grown the order book to 16,400,000.

24:14 We've reduced the cost base, and we've made clear progress towards sustained profitability. Technologically, we're differentiated. We've built a platform that combines digital and voice cognitive assessments, ECOA, AI powered data quality tools. It's already embedded in global trials today with active regulatory engagement. Strategically, we've got multiple growth levers. The organic expansion, the commercial partnership opportunities, the joint ventures, and the spinouts. We're focused. We're executing, and we're really excited about what the future holds for CAMBRIDGE COGNITION going forward. I'd like to thank you for your time, and now we welcome any questions that you may have. Fantastic, Rob, Ronald. Thank you very much indeed for your presentation.

25:00 Ladies and gentlemen, please do continue to submit your questions using the Q and A tab situated on the top right corner of your screen. While the company take a few moments to review those questions submitted today, I would like to remind you that a recording of this presentation along with a copy of the slides and the published Q and A can be accessed via your investor dashboard. Rob, Ronald, as you can see, we have received several questions throughout today's presentation. And, Rob, if I may now hand back to you to run through the Q and A, and I'll pick up from you at the end. Thank you. Thank you very much. So just stepping down and having a look through, Ronald, I think I might take you to this one. But can you walk us through, please, the cash flow movements of the different type of contracts that you get? Yep. Absolutely. So there are there are two that are generating revenue and cash today, and there are two that we'd hope to generate revenue and cash in the future. So let's start with the biggest single area of revenue generation, which accounts for well in excess of 90% of the company's income today, and that's clinical studies.

26:01 Clinical studies range in value from probably 2 to £300,000 in total contract value running up to about a million pounds in total contract value. They typically last on the smaller end about a year, maybe a year and a half. On the larger end, they could be running up to three years, four years, or even five years dependent upon the disease indication that we're looking at. Typically, we will see something in the region of 15 to 30% of the total contract value build as an upfront payment. That is entirely normal and usual and typical in clinical studies. And then other payments come through either on a monthly basis across the rest of the study or when individual milestones are hit during that clinical study. So, for example, when we hand over on user acceptance testing or when we see the first patient being enrolled in the study or when the last patient is enrolled in the study or when we reach the end of the study and we reach database lock and we're starting to produce information.

27:07 So there's that stage payments. The important thing, and this is one of the critical features and why I talked about the deferred income piece earlier, is that we are typically cash ahead of revenue. So if the total contract value of a study is, say, 500,000, we might be saying $100,150,000 upfront before we've done any work. And as we're kicking off that study, this is entirely usual, and that's what we that's that's one of those critical features about clinical trials. If we look at the academic market, which is so important for driving that science base of the business, We're doing about £1,000,000 in revenue, on clinical studies at the moment. We're hoping to see that double, triple, maybe even quadruple over the course of the next couple of years. We've got leadership focused on it. These studies are typically smaller, somewhere in the region of 5 to £50,000 in terms of total contract value.

28:07 We typically see, if not all of it upfront, then we'll see it staged over a number of months. These studies, by their very nature, are short, and therefore, the cash and the revenue cycle really appears in that three to six, six to twelve month window, and it's a nice useful additional source of income. On the grounds that it's delivered very much as a software as a service model, the cost of executing academic work is relatively slow, and that means that it's got reasonably high profitability. When we're looking at those two new areas that you described, Rob, talking about the health care market and the consumer health market, we're anticipating that these will be different price points. We'll be dealing with partners who will be dealing directly with the end user, the customer, and what we'd expect to see there is a per use basis.

29:03 So as the consumer health care delivers a test to a to a an end user, we'd expect to see, revenue at that point. In a clinical health care setting, the the objective is to either engage with other resellers, and we've got a number of really interesting conversations going there, or we'd be looking at engaging directly with clinical hospital groups and, again, some fascinating conversations started. We're not promising a deal during 2025. We'd love to see one during 2026, but it is that workup. What we expect to see there is that continued source of recurring revenue from a user using tests on a call off basis, and we'll be charging per task per test given.

29:48 Okay. Thank you, Ronald. Stepping down to the next one, how are you planning to deepen your relationships with tier one pharma and expand into other markets such as health care and consumer health? So breaking that down a little bit sort of to that first section of how we plan to deepen the relationships with tier one pharma. This is about us being able to use and leverage. We've had relationships within that space before, but it's about making sure we've got a clear positioning of the value and the value add that we bring through that product suite that we spoke about, And then ensuring that we've got the right continuous sort of governance structure both at a commercial level, so in terms of making sure that we're seeing and bringing the opportunities of these tier one pharma wider platform, wider kind of CNS pipelines that we could apply our technology into and having that clear kind of sales values position.

30:40 But it's also ensuring that throughout the whole organization from sales to service delivery and closeout is that we're replaying the wins and the successes back through to that governance structure, that commercial structure so that we can recognize that when we're bringing value and supporting reducing risk and risk mitigation in how we deliver and the fact that we, you know, hit first patient, first visit every time because of the type of customizable flexible system and platform that we have, it's ensuring that people within that tier one, those decision makers, recognize that by selecting CAMBRIDGE COGNITION, not only do you get the valid objective outcomes of cognition, you also get a reliable partner and someone who is able to consistently deliver at that high standard. And so that for us is a consistent replay model. Land, lead with our, obviously, cognition, our value position there, being able to offer the wider ECOA and our data management services that sit around that, and the addition of these AI enabled voice platform technologies such as automatic quality assurance, but also the speaker identification service. So we're able to bolt on additional services to that that contract that we've already secured.

31:50 And then also making sure that we're applying to other areas of the CNS pipeline within that partner as well. How can we address other areas and bring those technologies in? So it is a whole holistic approach to actually addressing and building that relationship and sustaining that relationship. In terms of expanding to other markets such as health care and consumer, we lose this in the last update we did in May, and and Ronald just spoke a little bit about the partnership approach and making sure that we see ourselves as being that cognitive provider of choice, and that's what we aspire to be. That means that we're not gonna go and try and build our own application and compete in that space with user experiences and build but what we can do is bring our technology to enhance and add value to third party applications that need a measure of cognition or need some subjective outcome measures that we can support.

32:42 And so for us, that is about identifying strong, well positioned partners and integrators who recognize the value of bringing COGNITION into their platform and adding that value into their sort of subscription based approach as well from that perspective. So that goes in both premium health care, governmental funded health care, and then into the consumer space as well. So it's about us really doing it a low cost, high impact way as well, building those relationships and and working through to then support as they scale. We scale our technology at the same point. Anything to add to that? No. I think it's I think it's really important when we think about the I mean, the thing I'm excited about and the reason for taking that corporate development role is really around that health care market and the consumer health market.

33:27 The health care market will be dealing with third parties ourselves directly so that we can provide our technology as a as a diagnostic like tool to those organizations so that they can use it in real clinical practice. In the consumer market, we're highly unlikely to take that product to market ourselves. We'll be doing it with a partner so that that partner can use their platform. We intend to keep our business development, corporate development activities in both of those two verticals Very lean indeed because we want to leverage the partner to be able to give us the market access. We're not gonna build a consumer facing app. We're not going to build a, a direct to consumer sales platform because what we need to do is we need to take what we do best, which is to build, digital touch based or voice based cognitive assessments and build the very best in the market and have those available to the physician, to the doctor, to the specialist, and ultimately, in a slightly different format to the end user, the consumer so that you can monitor your own cognitive health and then eventually be able to bring something which is recognized by the physician as being a reliable tool to say, hey, doctor. I'm not feeling well.

34:49 Here's some information that I got from the CAMBRIDGE situation. And that will help the physician to be able to make a trusted diagnosis. And the important thing is that brand recognition It is. Brand equity around the use of CANTAB and and recognizing its position within academic, within clinical application to be able to address that health care and consumer. Again, that flywheel of of building that, and sort of accelerating that. And that's based, as you said earlier, Rob, on that thirty to forty years of experience in the market, well over 3,000 peer reviewed publications that absolutely name check CAMBRIDGE as being source of the data, and that builds that brand value, that equity value, that trust. Thank you. So just stepping into the next one again.

35:35 Any more tech development needed to deliver on company potential? I think it's a great question. And just one thing that we've taken and and we referenced in the the announcements and also in this this presentation as well is about leveraging our IP. I think from our perspective, we leaned down our our r and d expenditure over the last couple of years, but also recognizing that, again, the technology in this space is about making sure that any tools you build are validated, are tested, have that credentials that sit across with it. So we've also been thinking about how do we leverage and actually bring what we've already got in the space to a commercial marketing kind of approach that actually gets to that cell and actually delivers on the value of what's already being developed. But importantly, also looking at our voice platform and our AI enabled voice platform and how we leverage that in new ways. So our recent announcement on speaker identification service, that is actually leveraging a pipeline and our existing pipeline, our existing technology in a new novel way, but actually to serve an unmet need. This isn't being us having to squirrel around and sort of build this on the side and expend high amounts to be able to get there, which means the ROI on much of our new tech development is is very positive from the perspective of being able to lean and apply it. So I think in time, of course, as we recognize the momentum of application of AI and we look at momentum of what and how we bring these validated tools to the consumer, to the health care professionals, to the clinicians, and ultimately to the researchers, of course, we

37:06 will look to innovate the the platform in the way that we deliver that. And so from that perspective, that's about continuously making sure that the platform is live, it's relevant, the user experience supports growing and demand of expectations of how you interact. And so from that perspective, I think that's, you know, that's natural continued investment that we'd look to have, but we aren't having to go deep into sort of new r and d to address the emerging needs we've got in the space. I think the bink answer in me always wants to make sure we manage our cost base effectively, but I do recognize that over the course of the next twelve, eighteen, twenty four months, driving to sustained revenue, sustained profitability, and sustained cash flow is our number one objective. But once we've reached that sustained cash flow, we must reinvest in our tech, and we will be reinvesting in our tech.

37:57 We're not a biotech company. We're a health tech company. We're a software driven organization with cutting edge technology, and what we need to do is we need to keep it at the cutting edge. But the economics of this company have to be that we are self sustaining and that actually we drive the business forward. So, yes, there'll be further investment, but not at the expense of sustainability. One here. Did you consider opening the recent funding to private investors? So we did consider it, and we considered it on the basis of looking at last year's fundraising. Last year's fundraising was slow, probably three months start to finish. It was expensive.

38:44 It cost us well over £400,000 to raise a little over 3,500,000. So that was a big cost associated with it. It was a significant drain on management's time. And because it was conducted at a discount to market, was dilutive. When we sat with our major investors and thought about how much capital do we need and can we get that in a low cost efficient manner, we came to the conclusion that using the 10% disapplication of preemption rights was the right thing to do because it reduced dilution to all shareholders. Pricing it at a premium to market signaled very clearly both from the board, the management team, and the investor group that the share price was oversold.

39:32 We've had some great response to it in the market. And therefore, unfortunately, we concluded that we were not going to conduct an open offer because of the time, the complexity, and the additional dilution that that would have caused. So we've done this in shareholders' interests to shore up the balance sheet. If we need to do a big fundraising at some future point in time, absolutely, we'll open it up to all shareholders. But the most important thing here was to remove that liquidity risk to give us a little bit of breathing space and to do it in an effective manner, which benefited all shareholders. Thank you. Next question is, DowGator forecasting 7,500,000 of new sales orders during h two. Is this realistic?

40:17 I we think it is. I I think it's a it's a it's a short, simple question. Yeah. We think it is. Obviously, we consult with both of the analysts who write on the company stock, and if we thought they were wrong, we'd have to guide their hand. But, yeah, it's within the reach. Now recognize also that 7,500,000 of new sales orders is not 7,500,000 of revenue because it is that sales orders to order book, order book to revenue, revenue to profit cycle that we've talked about. And it's important to recognize that that 7,500,000 of new sales in the second half will generate revenue some in 2526, 2728. If we look at the order book today, Rob, we actually extend out as far as 2030. Next question is, please explain database ownership of these clinical studies. Is there revenue earnings and potential additions to NAV?

41:13 So I think important is when we're working with clinical studies, you know, there's a range of answers that sit within this space because it kind of depends. But majority speaking, when you're working with clinical, the data is owned by the participant, the data owned by the clinical pharma company or the sponsor running that study. The important thing is obviously how we consider the validation and the use of going back and being able to exemplify. Of course, we've had recent announcements where our technology and how our technology has been applied and the data that sits behind it has been published. For example, earlier this year, the Apple and Biogen update from the Nature magazine. So that's prospectively showing how our tools were actually using the data sort of that sits behind it. And furthermore, we had one with the Bristol Myers Squibb's piece earlier last year as well later last year. Sorry.

42:04 Again, showing how CANTAB was used in a post hoc analysis. So there are opportunities to sort of drive and leverage and show that those kind of relationships within a clinical space, the data that supports and backs it. Of course, when we step into academic and into health care and into the the consumer space, it really depends on kind of the, again, the kind of contractual positions that we have. The important thing is making sure that any individual that is using those tools recognize and knows where that data is going, how that data being used. That's primarily number one, that that privacy and security around data usage is absolutely key because we wanna make sure that that trust is in there within the brand as well. And so any partner has to ensure that they meet to those high rigors that we set out around how they would use any data and the the kind of collection that they have there. So we do see data commercialization opportunities in the future.

42:56 And, again, how we go about leveraging both what we've already got, but also how we set up the commercial structures and approach in the future that might consider usage of data. But, again, so long as the end user is doing so knowingly, willingly, and we're protecting their privacy and their data. Yeah. There are a couple of features here. I'm gonna be really boring, Rob, and reference the fact that we're ISO 27,001 certified. We're fully GDPR compliant. What we're dealing with here is not just personal identifiable information, but sensitive personal data, And therefore, protecting the patient's rights is fundamental. The data in the clinical study is generally owned by the pharmaceutical company having taken consent from the patient to be able to use it.

43:42 There's been lots of talk with lots of health companies, biotech companies, and pharmaceutical companies about using the data and selling it and extracting value from it. We continue to look at these opportunities, but I really don't think we should be promising it today. It's not where the company's going. We've highlighted where we see the next two fundamental pillars of revenue growth coming from in professional health care and in consumer health. Were we to do a data based deal, it would be an upside. I I don't think it's worth baking it into a net asset value calculation for the business. Can you please talk about the letter of intent sent to the FDA to qualify a digital cognitive assessment for schizophrenia as a co primary trial endpoint? Thanks for for this question. It's an important recap of we submitted this earlier this year.

44:33 Obviously, for those who are tracking, there is a lot of volatility within the the FDA and and the resourcing that sits within the FDA. We have continued to check back in in terms of the progress of our application. For those who know, typically, there's a ninety day return that would come back to say whether they're further investigating or or rejected from that pace. We haven't had that formal notification. Importantly, that that we take that as a potential positive sign that obviously hasn't been at that initial stage rejected. We are a little bit in the hands of kind of seeing how the FDA are going to respond and and how they're kind of addressing the backlog of these applications. So we remain encouraged. We will continue to drive this as a regulatory strategy as well. Mhmm. But, unfortunately, we don't have today any material update or news of where the application's at more so than just it's active, it's still in the pipeline, it's still there, and we take encouragement from that. Yeah. The Food and Drug Administration will do things in its in its own time.

45:30 Bad news travels fast from the FDA, and if if there were bad news, we'd have heard about it already. That is still being processed is generally good news for us. I think that kind of plays into the last question that we got today around the potential headwinds to clinical studies, as a result of the Trump administration. I think it's fair to say that the Trump administration has and it's sought to be disruptive. It is being disruptive. We haven't had major problems associated with it, but what we're able to say is that it's just one of those features in the market. One of the reasons for dealing with the big cap tier one is so important is so that we get that depth of customer base from very well funded businesses that allows us to move on.

46:21 Absolutely. So just going through any further ones that we may have in here. Can you elaborate on your pipeline of 32,500,000, and how is this qualified and measured? What proportion would you expect to convert over what time and time frame? So the last thing that we do is to ask our sales professionals what they believe their probability of success is. Sales professionals, by their nature, have to be optimists. And so if a sales professional tells you he's 90% certain that he's gonna sell the study, we don't listen to that. We base our qualification of that pipeline, and that is the gross value of all opportunities that we're chasing. We base that around a staging process, how far through the sales process do we think we can get.

47:12 Based around that 32.5, clearly, and somebody else referenced Dowgate's sales expectations. So the the sales pipeline probably represents about three quarters visibility. Not everything in those three quarters is visible today. Certainly, everything in the next quarter is visible today. Once you move two quarters out, it we still will close business that we can't see today. Three quarters out, we'll definitely close business we can't see today. Four quarters out, the pipeline really doesn't reflect where we're at. So I think I'd refer to the analysts. Obviously, they suggested that we do 7,500,000 in new sales in the in the, the rest of this year. So you're probably looking at something of the order of, I don't know, 25 to to 35% of that is likely to close overall, but it depends on each individual study.

48:10 It's big enough to be able to hit the target, which I think is the most important point. Excellent. Thank you. And I think that draws the end of the questions from that side. That's great, Rob. Ronald, if I may jump back in there, and thank you for addressing those questions from investors today. And, of course, the company can review your questions submitted today, and we will publish those responses on the investment company platform. But, Rob, before I redirect investors to provide you with their feedback, which is particularly important to the company, Could I please ask you for a few closing comments? Absolutely. I mean, first of all, just to say thank you for your time and and joining us on the session. I hope, as we've set out in the last sort of six to eight months, the engagement with the retail and wider investor community has been a key priority to reset that relationship, reset, and build that trust as well. And I hope that what we provided through both the releases, the interims, the end of year results is that clarity and visibility of how the business is performing at its core. But, also, I hope from the sessions that we've taken over the last couple of months, you're also starting to see the huge potential that this organization has.

49:18 And the reason why every day we get up more excited to come and drive this business forward is because it's really unlocking that full potential. So I just wanted to say thank you for your patience. Thank you for your time. And, yeah, any questions, do feel free to submit them afterwards, we can also address those in due course. So thank you. Thank you. Fantastic, Rob, Ronald. Thank you once again for updating investors today. Could I please ask investors not to close this session as you will now be automatically redirected to provide your feedback in order that the board can better understand your views and expectations? This will only take a few moments to complete, and I'm sure will be greatly valued by the company. On behalf of the management team of Cambridge Cognition Holdings PLC, we would like to thank you for attending today's presentation, and good morning to you all.