Feedback (LSE:FDBK) — Results and Company Update

0:00 Good afternoon, and welcome to the FEEDBACK PLC Investor Presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and can be submitted at any time via 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, the company will review all questions submitted today and publish responses where it is appropriate to do so. Before we begin, I'd like to submit the following poll. I'd now like to hand you over to Tom Oakley, CEO. Good afternoon.

0:33 Hi. Thanks very much. Hello to everyone who's who's attending. Unfortunately, we can't see your faces, so please please bear with us. But we look forward to receiving your your questions. For those of you who aren't familiar, I'm doctor Tom Oakley. I'm a radiologist by clinical background and the chief executive of of FEEDBACK. I'll just let Anesh, our our chief financial officer, introduce himself quickly, and then we'll we'll roll through the deck. Good afternoon all. Anesh Patel, CFO. I'm joined FEEDBACK approximately two years ago. I'm looking forward to taking you through the h one results today with Tom and providing a general update.

1:11 Great. Okay. So just to go through the presentation, just starting with a brief overview of the company that I'm sure that most of you are familiar with us. But for those of you who who aren't, FEEDBACK Medical and then FEEDBACK PLC is the owning company, are really specialists in the medical software and technology space. And unlike many manufacturers of software in in health care, we

1:36 are actually a fully certified medical device. And we come at the medical software very much with a lens of quality and regulatory compliance, which gives us a very unique position in the market. Historically, the company is, over twenty years old now and originated as a PACS company. PACS stands for picture archiving and communication system. And it's a bit of a mouthful, but really it's a digital library of radiology images, and it's how hospitals store or traditionally stored all of their medical imaging studies. That gave us a great platform and a base technology from which to launch into a completely new strategy focused very much on providing clinical data to frontline clinical teams.

2:25 And our focus since I took over as chief executive in 2019 has very much been focused on how we can meet the needs of the broader frontline clinical workforce. And as we go through the deck, you'll see some of our technology. I'll try to highlight the key features of VaaS and and really what sets us apart in the market, not just from moving our products, but also also our positioning. Underneath our technology, we also have a unique cloud infrastructure called CareLocker, which in the period that we're going to discuss has also become a patient facing application directly offering our services to consumers initially in India, but with a view also to opening that up in in other markets. Because of the breadth of our technology and the sort of consumer groups that we we are really focused on, we actually have a very large addressable market over 10,000,000,000 in in in total if you look at both the domestic NHS market and some of our international opportunities.

3:26 And just, ever so quickly, we'll go into it in a bit more detail in a in a second. At the top level, we've had a very good, period. So h 01/2023, we've actually seen revenues increase up 222% on the previous period, and that's been driven by quite a lies quite a a large increase in sales, up a 149% on the period as well. And we retain a very strong cash position having raised money in the the the prior period, and we we closed the period at 9,200,000 of cash, which is more than, sufficient to meet our, our short and midterm needs as a company. And and so we consider ourselves to be well capitalized to meet the opportunities that we we see coming down the road at us.

4:17 Just to give a, sort of top level view of the operational highlights for the period. This period saw the conversion of one of our our long term pilot sites, to a paying customer. So this was within, Sussex ICS with Queen Victoria Hospital. And the contract was for £450,000 for a 12 extension to the program we've been delivering there. And that was to cover the period from March of last year to March of this year. And some of the shareholders who have already seen that actually Sussex have now come out with their procurement tender for the renewal of this contract on a a two year with, a couple of year extension options as well. And we we will be, of course, bidding for that.

5:03 During the period, we also became a supplier on, the very prestigious g cloud 13 framework. And this actually was in large part due to work we did in Sussex and being able to evidence the value, of the the product and the capabilities, and also because of our ongoing maintenance of all of our regulatory certifications and quality, certifications. As I I briefly mentioned just now as well, we also opened CareLocker, our cloud application, and repurposed it as a consumer facing application in India. And we'll spend a bit of time talking about that later on in the presentation. And the last thing to highlight really during the period was that we undertook a share consolidation, a a 201 share consolidation, which is why you may have seen a step change in the in the share price.

5:52 It's not just on the the basis of good news. It is actually also partly because of his consolidation. And, Nesh, if I if I let you run through the highlights, then I'll I'll take back over. Sure. Thanks, Tom. So on this slide, we have the financial highlights for h one, which is a six month period ended November 30. Revenue is up 222% versus the prior period to nil £580,000. And, of course, this is almost in line with the latest full year results and for f y twenty two. The revenue growth reflects the significant increase in average contract value for Peepa Care Locker compared to our latest products, and Peepa Care Locker now comprises 73% of revenue. In addition, we did benefit in h one of nil £190,000 of revenue from the Sussex ICS contract, which relates to the five month period prior to contract signing. The contract was signed in it in September 2022, but it covers the twelve month period starting 04/01/2022.

6:53 So there was a one off, five month revenue recognition in h one. As Thomas mentioned, Sussex has now launched its formal procurement process for a long term CDC solution post expiry of our contract in April, and we will, of course, be tendering for that. And that's worth 1,600,000, over a two year period. In terms of sales, we increased our sales versus the prior period a 149% to naught £610,000. And of this, PEEPER Care Locker contributed around 77% or naught £470,000. The balance was split roughly equally between legacy products, text run and CAD run, and imaging engineering royalty fees for X-ray image capture technology.

7:41 And just to add that sales is different revenue. It's non IFRS, and, essentially, it represents the total value of customer contract wins in a given period, ignoring any deferred income adjustments that are required for for revenue recognition purposes. And going forward in future, as we land more contracts and we have more certainty certainty on twelve months fee renewals, we will replace this metric with ARR going forward. Adjusted EBITDA losses, EBITDA less share based payments. The adjusted EBITDA loss widened 19% to £1,200,000 in h one. The increase in revenue was offset by higher OpEx as planned, in particular, related costs, whereby our headcount has increased to around 29 full time employees versus 18 just before the fundraise. And, of course, part of the and process of the raise were intended to increase our headcount in order to exploit the opportunities that we see in front of us.

8:46 And, also, an increase in sales and marketing expenses was another driver for the higher OpEx and the slightly increased adjusted EBITDA loss. Cash, as Tom mentioned, was £9,300,000. We have a strong balance sheet and and and sufficient capital for for the near term. In terms of cash flow, our cash outflow prefinancing in h one reduced 16% to £1,080,000, and that's an improvement on the prior period of £1,290,000 cash outflow prefinancing. And that's due to higher customer receipts, higher tax credits, r and d tax credit, and some favorable working capital movements. So we yeah. These are the key financial highlights for for h one.

9:33 Tom, probably over to you. Great. Thanks, Anish. So just to give a very top line view of the the products, we'll we'll spend a little bit of time on this in the coming slides. So we have three core products that all leverage essentially the same core based technology around medical device image viewing, and also the display of other clinical, results data. So BLEEPR is our clinician facing user interface. This allows clinical collaboration around individual patient cases with a fully certified view of all of those patients' imaging and other diagnostic results. CareLocker is essentially a very similar product, but it is is essentially a skinned down version of that doesn't include the clinical chat interface.

10:18 It allows a patient to be able to see their own diagnostic results and then also to be able to share those with a clinician of their choosing. And then BlipperBox, this was something that we developed for our our veterinary and TB screening programs. And this is all about being able to send radiology images over mobile networks, three g or higher, straight up to the cloud so that they can be available via both for review while you're with the patient, but then also for collaboration with specialists who could be located anywhere in in the world. So just to focus in on Blipper. So this is, again, our sort of clinician facing chat platform. This is where clinicians can collaborate around individual cases.

11:05 You could describe Bleeper at a very superficial level as a clinical grade version of WhatsApp that displays CTs, MRIs, and ultrasounds. But, actually, it's considerably more than that. We have various features within the application such as photo capture that allow us to capture images of patients, so for wound assessment. We also have the ability for you to get a digital copy of any faxed or printed referral letters so that you can create a digital copy that becomes part of a record. We have inbuilt consent modules that allow you to consent patients for various procedures and for photos, and that that actually is a core part of the auditable record that we're we're creating within within Blipper. And Blipper provides an end to end auditable care environment where the discussion that you're having as a clinical team is actually the note for the patient. So it saves clinicians a lot of time not only because it's very easy for them to refer patients between each other, but also because the discussion is the clinical documentation. They don't have to separately go and document something in an electronic record or in a paper based record system.

12:19 BLEEPR is a fully regulated and certified medical device, and this is because we are showing clinical images at a diagnostic quality. And that is a legal requirement within America, within The UK, and within Europe, and increasingly in other territories internationally. The entire product is manufactured according to a quality management system called ISO thirteen four eight five. And we also hold accreditation with ISO 27,001, which relates to the security of data and the processing of data within the application. And lastly, we also hold Cyber Essentials Plus certification, which is a security qualification whereby external entities undertake independent penetration testing of the system. So we're very confident in the security of the application.

13:11 And this is probably one of the first times actually we've presented CareLocker to to all of you. So it's worth spending a little bit of time on this. So when we originally created CareLocker, CareLocker was actually an underlying cloud architecture for Bleepa. So it was a cloud environment that essentially was more like a bubble bath than a cloud where every patient had their own bubble, and it was a way of creating a very secure data storage environment for individual patients. What that enabled us to do, particularly in India, was then to offer access to that cloud environment directly to the patient. And so we we did this by essentially reskinning bleep or removing the chat component and providing a a slightly new, color palette. You'll see this is this is purple rather than the traditional bleep of colors.

13:57 And it allows a patient to have digital access to all of her radiology studies and other investigations, including any structured reports that are generated, but also the ability to then share that digital package with a clinician of their choosing. And in India, this has opened up a very sizable opportunity for us with diagnostic imaging centers, which we'll we'll spend a bit of time going through in in a couple of slides. Again, just to give you a the top level view, these are some of our regulatory and quality accreditations, which I just mentioned. The really important one to highlight here is that because of these credentials, we have been able to subscribe to the g cloud procurement framework in The UK. G cloud 13 is a procurement framework that allows individual organizations to directly award contracts to us as a as a company, and it smooths that that process of procurement and contract negotiation.

14:55 So just spending a little bit of time looking at our existing customer base and some of the the the growth and development in those over the last year and certainly over the preceding period. So looking first at Hospital in Reading. Are using bleep predominantly for the photo capture feature. So this is allowing them to capture images of wounds and of lesions as patients come into the a and e department and then be able to securely share those and store those with with other clinical team members. And we've got a quote here actually from one of the consultants in a and e just showing the sort of nature of the impact that having access to this this product is is delivering for them. And it's really about having that twenty four access twenty four hour access to a secure photo capture environment.

15:44 We're currently rolled out across 365 clinicians and referring photos to up to three specialties. We're about to implement a huge expansion at RBH really based on the ability to give clinicians access to people on their mobile phones and devices. So we're hoping that the number of specialties will will soon greatly expand. They are one of our our longer term customers having renewed twice with us, and we're looking forward to renewing with them again this year. Northern Care Alliance was one of the first sites to adopt. This was just in the the the run up to COVID nineteen. And as one of our most established sites, this is where we have one of our bigger clinical user bases. So we have up to 900 clinicians here across multiple hospitals and across multiple specialties within those hospitals.

16:34 And they are using BLEEPR predominantly for referring patients and managing that flow of patient between

16:40 different specialty teams. We found through their own independent benefits analysis that we are saving on average thirty six point three weeks of clinical time a year, and that we have reduced the amount of time it takes for referrals from two 0.1 to on average naught point four days. And what that means is that we're getting patients through the hospital faster. And for anyone who's following the news at the minute, this is a key pressure on the NHS. How do you get specialist advice and guidance onto a particular patient journey? How

17:10 do you get patients through that hospital environment more quickly? And this is this is the area that we're specializing in and and focusing on. And then to look at where we see the NHS opportunity going, we're looking now at how we can deliver services across provider settings using that common view of a patient that we generate in and the ability to then build a team around that common view. That means that we can have a stakeholder who is in one care setting and another care setting completely geographically removed from that, all looking at the same patient. And in the context of the NHS, what we have delivered is The UK's first symptom based care pathway connecting a a patient from primary care where they've seen a GP through a community diagnostic center where they've had a series of diagnostic investigations and then having those diagnostic investigations reviewed by a team of specialists in secondary care. So this is a breathlessness pathway where a patient has arrived to a CGP out of breath. They've been referred to a community diagnostic center where they've had an X-ray, an ECG, some spirometry, and some baseline bloods. We've brought all of that diagnostic data together in bleeper into one place, and then we've presented that diagnostic view to a respiratory consultant, a cardiologist, and an ear, nose, and throat consultant at Queen Victoria Hospital who together come up with a management plan for the patient completely remotely through our instant messaging interface in collaboration with the GP.

18:42 And where this has created quite a lot of impact is that as a result of this, we're able to get patients through a diagnostic pathway in a considerably shorter period of time than the current national targets. So there's a national target that, you should be able to get a diagnostic investigation within six weeks of a referral from a GP. Well, the early data from our investigations have shown that actually we are on average getting patients through in thirty five days or less, and that's for a completely managed end to end service. So not just for the diagnostic investigation, but also for the management plan. And as a result of that, we are very confident that delivering a community diagnostic center using this infrastructure will allow you to really reduce the elective care backlog within your locality. One of our long term pitches to the NHS has always been that if you just have a community diagnostic center, you'll generate a lot of diagnostic data that doesn't really do anything for the patient.

19:37 Unless you can take those diagnostic results, put them under the nose of the clinical decision makers, you won't actually get any faster decisions. And it's those decisions that will move the patient through a care pathway and get the elective backlog down. So leveraging this pilot, we've been able to engage with a number of potentially interested sites both at a regional and a and a local level, and we look forward to being able to talk further about that in in due course. This is an area that's receiving a lot of political pressure and a lot of central funding.

20:11 It's a one of five policy pledges was to reduce the elective care backlog. The communities diagnostic centers are really the only initiative going that is going to have any chance of doing that. And as we've just described, community diagnostic centers on their own won't have an impact on the backlog unless those results are

20:34 in integrated within a care pathway, and ours is the only platform that's doing that. So we're in a really good position as we come towards that sort of NHS financial year end at the end of March. And to give you a idea of the scale of the opportunity in the CDC space, we're looking nationally at about a 160 community diagnostic centers being being launched. These are all at various stages of deployment. Up to £10,000,000,000 has been put into this initiative from the government, and that funding has been re pledged by Rishi Sunak, as one of his his his key priority areas. Now luckily for us, we are not dependent on those centers being fully established before we can demonstrate an impact. We can actually help a hospital to use the existing scanners and existing diagnostic facilities they have today in a more effective way and to also use the existing staff that they have in a more effective way.

21:35 And as a result of that, we should be able to see some contract progress in the NHS long before these new centers are are built and established. And, again, we'll we'll update as soon as we've got progress on that to to talk about. Just touching then on on India. So the near term opportunity that we've seen in India is really for our product CareLocker. I'll come to Blipper in a second because we've we initiated our

22:01 foray into India with Blipper. But, actually, I think we've we've realized that the near term opportunity is CareLocker, and that's predominantly because CareLocker is not considered a medical device. And it means that we can sell it immediately within the Indian market. And so we've set up a pilot of CareLocker with an imaging center in Sampuna, in indoor called Sampuna. And what this enables is today, if you were to go to an Indian imaging center, you would have to either receive a film print of your X-ray or you'd have a CD burned, and that's how you would get a copy of your data. That means you have to attend once to have the scan, and then you have to go back a couple of hours later to pick up your film or CD.

22:48 With CareLocker, you only have to attend once and then you will digitally receive a copy of your imaging and results. So it saves you as the patient a second trip, but it also means that the actual imaging center is saving money every time a patient comes through because they're not having to generate a film or a CD. And as a result of this, the imaging centers are promoting CareLocker to their own customer base and encouraging them to take the digital version, which greatly reduces our cost of acquiring customers because the the indirect sale was led by the imaging center themselves. We have already started to see some sales of CareLocker to clients going through Samperna. We haven't yet been in a position to actually recover the invoice from that from Samperna because we've been setting up an Indian subsidiary to allow us to do that.

23:36 And perhaps at a once we come to the questions, Anesh might be able to add a bit of information on that. But it means that we are actually beginning to see early evidence that our value proposition is realized by the customer, and we are already seeing interest from other diagnostic imaging centers within Sanperna, within indoor, and then also some of the larger cities in India that are very to see how we can expand this. So I I think this is a quite a an exciting space, and the scale of it is is truly enormous.

24:08 Within each locality, even within a city like indoor, there are 40 imaging centers. If you go to one of the largest cities like Mumbai, there are hundreds of imaging centers, all of whom have the same requirements and the same value proposition from our from our products.

24:27 And to touch on on BLEEPR and TB screening, so we've been running a TB screening pilot in partnership with Amazon Web Services and cure.ai for over a year now. We've been generating a a very good quality of clinical evidence really to show that not only does our bit of technology work, which was relatively easy to demonstrate, but also that by giving digital copies of imaging to an AI tool, we're able to greatly improve performance of that AI tool and and get a high quality of result. Now what we have been looking to do is how we then subsequently commercialize that within India. And the difficulty that has been encountered is because bleep is a medical device. We actually have to certify that within India. And that means we have two options. We either have to license Bleeper to a wholesaler in India who can then undergo the medical device certification and resell it for us.

25:26 However, that means that we have to hand over our technical file information, and that would put our IP at risk. So instead, what the board has elected to do is to set up an Indian subsidiary company that will itself register as a medical device manufacturer, which means that we will be able to retain our IP, and then also be able to sell the product directly within, with the Indian market. The Indian subsidiary, has now been incorporated. We're just in the final stages of getting the accounts, associated with the company, and then we will be in a position to actually register as a medical device. And we anticipate that that will take between six to nine months. Now that means that we won't be able to sell until the medical device certification is completed.

26:11 But in the meantime, we can continue the commercial discussions that we've been we've been launching for TB screening and BLEEPR more broadly so that when the medical device certification is complete, we're in a position to have contracts lined up. And so the TB screening opportunity is of interest both to state level governments, but also some large NGOs.

26:35 We've indicated previously that we are forming a sort of consortia bid around this where we've partnered with both AWS and Cure dot ai. But we're also in discussions with some large telco providers within India who will be able to provide that network connectivity to allow us to push the imaging up to the cloud from those remote locations. Remember, of course, we need a three connection or higher in order to be able to push that imaging, and that's where the the telco comes in. And then we are also seeing opportunities directly for with individual hospitals and then also at a more regional level with state level governments as a way of connecting government facilities. And all of those conversations are underway, but but can't unfortunately be realized until a medical device certification is is completed.

27:23 And then the last thing to really highlight to to everyone is our licensing agreement for some of our legacy technology with a US partner called Imaging Engineering. Imaging Engineering are essentially updating old technology, an old type of x-ray called fluoroscopy, which typically runs a sort of analog imaging. They are coming to the end of their natural lifespan. They usually last about twenty years, and they're they're all coming up to that. And so as a result, want to individual hospitals will have to either buy new equipment with a digital basis, or they will have to update and renew their existing kit and convert them to digital imaging, methods.

28:08 Now imaging engineering are experts in upgrading these systems to a digital architecture, and as part of that, they license our software. They have a a sales pipeline to about 2,000 sites across The United States, and we we have been looking forward to receiving some of the royalty payments for the licensing of our technology. And, unfortunately, that was partly delayed because of COVID nineteen and because they couldn't physically get into the hospitals to upgrade these sites. Now that that is passed, we've actually seen an uplift in licensing revenue. As as demonstrated here, naught 700,000 generated within the period, which was up from 20,000 in in in the prior period. And we're expecting to see ongoing growth of that. And this is just a pure licensing revenue opportunity for us. We don't have any associated support or or or other costs.

29:04 So it pretty much pure profit for us, and so quite a nice revenue stream. And then just to touch on outlook before we we stop for questions. I think the near term focus remains very much on the community diagnostic space here in The UK. This is where the government is focusing a lot of its time and energy and also a lot of its funding. We're expecting to see some contract progress on that both within our existing customer base, but then also potentially bringing in some new customers, and we'll on that accordingly.

29:37 And then similarly in India, while we go through the process of registering as a certified medical device in India and setting up that subsidiary, we will continue to drive the growth and adoption of CareLocker with imaging centers both within indoor and some of the other larger cities that we're already getting interest from. And so we should be able to see some revenue generation from India in the near term long before the full subsidiary and to register devices is completed. And at that point, I think we'll we'll stop and take questions. Tom, Anesh, thank you very much for your presentation. Ladies and gentlemen, please do continue to submit your questions using the q and a tab situated on the top right hand corner of your screen. While the company takes a few moments to review those questions submitted today, I'd 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 investor dashboard.

30:32 Tom, Anesh, as you can see, we have received a number of questions throughout today's presentation, and thank you to all for submitting their questions. Could I please just ask you to read out the questions and give responses where it is appropriate to do so? And I'll pick up from you at the end. Sure. Anesh, do you wanna pick a question? Or So So in terms of financial questions, when do you expect revenues to commence from Indeed operations? I I I think I should we've just spoken to that. But in the near term, we expect to see some modest revenues from Sampona for Care Locker, which is the b two c proposition.

31:21 I think the the larger Indian revenues from PEEPER will obviously be further down the line, and and, you know, we can only really generate those once we've got the PEEPER medical device registration in India. You know? And that will take six to nine months. But certainly in the near term,

31:39 we expect to see some some modest revenues from CareLocker and from imaging centers. And we are also in active conversations with other imaging centers to roll up the solution in there as well. So, yes, in summary, in in in the near term.

31:58 I've I've I've just taken the one underneath that initially. There's the question is, do you see competition being able to achieve your currently unique proposition? And in the in the near future, what is your moat? So the answer to that question is we have competitors that do components of what we do, but no one who does the complete end to end solution and no one who does that within a medical device regulatory wrapper. So if I give you some examples, there are other providers who have a chat based messaging interface, but they don't display diagnostic results, and they certainly don't show the diagnostic imaging and and hold a UKCA mark for that purpose.

32:46 There are other providers that do data aggregation and integrate to multiple sites and then try to present that data. But, again, they don't then have the chat capabilities or the pathway features of. So there's no one really who can act as that digital glue that connects all the provider settings in a way that we do and in a way that is needed for those CDC results to actually have an impact on the pathway. So I think our our position is quite unique. For someone to deliver what we do, they would have to develop that full suite of capabilities and then certify and go through all the medical device accreditation. So it's it's quite a high barrier of entry for someone to do that, I I think. There's another question here. What what what is happening with your contract with Imaging Engineering in America? So that's ticking ticking along nicely. We have minimum and royalty royalties due, and, you know, we are anticipating that to, you know, at least receive the minimum royalties, which is around 60,000 to $65,000 per year. We do see some upside potential to that.

33:58 And we're also discussing with imaging engineering and potential add ons to the license agreement and looking at potentially further monetizing existing IP that we have, although that is at quite an early stage. So, yes, it it in in in in short, the imaging engineering contract continues paying us royalties of around $65,000 per year. There's another question come in here, they're saying, Tom mentioned an average contract per CDC on proactive of 400,000. Is that per annum? Yes. It is. So the it actually should be slightly higher than that based on the average CDC that we're expecting. And broad broadly speaking, our our CDC pricing and and and we can disclose some of it because it's on a it's on the g cloud public procurement framework.

34:54 There's an installation fee per GP practice and per hospital, and then it's an annualized license based on patient throughput. So for an average size CDC, we expect that to be in order of 600,000 per annum. And, obviously, per region, there are multiple CDCs. So per ICS integrated care system, we you could be looking at four or five CDCs within that sort of footprint. And clearly, there there's an a nationally, there are going to be in the order of a 160 CDC. So so it's it's quite a sizable opportunity. One thing to mention on that is that the pricing very much also depends on whether we are providing the hosting for that clinical service or whether the NHS partner wants to provide their own hosting.

35:43 And we're seeing a bit of a a divide on that. Some some areas are very happy for us to host the data. Others want to host the data themselves. The the the cloud hosting is a relatively large part of the contract size, but a very small part of our our margin. So from our perspective, it doesn't really matter whether we are going to host or not. If we are not hosting, we'll just provide the software under license, and that was the high margin part of the opportunity. But it will have an impact on the the sort of gross value of the contract. So if if you do see when the contracts begin to come through, if you see some for 800,000 and some for 400,000, it the the difference will be whether they're cloud hosted or not. But we'll we'll try to make an effort to make sure that the market's informed of which ones are cloud hosted and which ones aren't, but just so that people are broadly aware.

36:40 But but we're we're aiming for an average contract value of 600,000 per year per CDC. Yeah. I think a related question is, did the QBH tender not close yesterday? Why haven't you already tended? So the QBH tender hasn't yet closed, and we will definitely definitely be tendering. The deadline is actually the March 1, if I'm not mistaken, with the preferred bidder to be announced middle of the month, middle of March, and then the contract commences April 1. So, absolutely, we are we will we will be tendering in this sort of a few weeks left until until the deadline. What's the next one? Okay. So that's pretty much the same question we just had. Resubmitted what's happening.

37:39 So this question here, we can see income ratcheting up. How will costs ratchet up? I think, you know, when it comes to future sales, future revenues, and pricing models, you know, we try and price our proposals at a target gross margin of at least 80% to plus 80 to 85%. And within that, we assume costs for operational staff, mainly support the support team and customer success as well as cloud costs. So part of that is, those costs are built into the kind of the the the gross margin when it comes to pricing. In terms of the fixed operating cost base, yes, there will be, of course, naturally some increase in the fixed operating cost base as as income ratchets up. But, certainly, you know, we may see more than a doubling of well, we will see more than a doubling of revenue, but we certainly won't see a doubling of of OpEx. It will it will increase at much lower lower rate.

38:37 Zero. I've got a question just come through now. Actually, is is it feasible for a CDC to use an imaging solution which is not UKCA certified as a medical device? No. At the moment, you want to show an image of a patient for a diagnostic purpose and diagnostic purpose under the MHRA guidance constitutes anything that would impact patient care. You have to be displaying that image within a UKCA marked device. So I suppose if you were to run a CDC that had no medical imaging at all and that it would include not having any photos, so no images of wounds, lesions, or or moles and no radiology at all, then possibly. But so much of the diagnostic workflow is dependent on medical imaging. In fact, I even think of the scenario where you'd go to hospital and not have an X-ray or an ultrasound.

39:39 And certainly in a community space, almost all of the patients are getting plain film X rays as part of those standard pathways. So the moment you have an image, you have to be using a UKCA product and then BLEEP is the only one. So, no. I I think I think we're pretty confident in that position. There are a number of non CDC NHS tenders. Are we involved with any of these, e g Southwest region? Yes. We we we very much are. So we we are tendering for any and every opportunity that we think is relevant to the technology. We are continuing to engage with individual NHS trusts for the sort of core purposes of both around photo capture and inpatient management.

40:27 This is with the Northern Care Alliance and RVH, and we are seeing some tenders coming through for those. But for the amount of effort required around tendering for an opportunity and and for driving sales, it is much better for us to win a CDC client than it is an individual trust, but we are definitely looking at both. But certainly in the in the near term, our our focus is very much on the CDC space because that's that's where we see the opportunity. There will be about a 160 CDCs nationally. Does FEEDBACK have a staff and resources to tender for all of these? Yes is is the short answer, certainly in terms of tendering for them. Although I'm sure my my team would disagree with me when I say that, but, yes, we do.

41:17 And in terms of then deploying it, it really depends on the pace of contracting and of rollout. And we have been working in the background to identify go to market partners both within the OEM space and then also within the consultancy the consulting space. And we are in discussions with with both OEMs and and some of the big four consultancies around how we would scale to do a national rollout if if such such headwind came our way. And, also, I think just just just add to that point, suppose, there are there are going to be a 160 CDCs. You know, clearly, we're not there yet. We're also we're seeing a move to more regional contracts with multiple CDC. So we'd have to tender, obviously.

42:06 No. We're hoping to tender more so on a regional basis than than on individual CDC by CDC basis, which helps. Another question has come to the top of my list. Can there be any advantage established to FEEDBACK hosting versus CDC hosting? If and I and I would say this, but I but it is true. We would do a better job of hosting it. It will be more secure and more cost effective if it's hosted on CareLocker. Part of the rationale for CareLocker is because it's more of a bubble bath than a cloud with every patient having their own bubble. Those patients that are not active in a care pathway do not need to be on high CPU cloud. So this is the the expensive type of cloud that uses quite a lot of energy. We can instead store them on a different type of cloud called glacial cloud, uses a lot less energy and a lot less processing power. And so as a result, on a population basis, we can provide the cloud environment that is operating at considerable lower cost base and, energy consumption. So it's not just a matter of of security.

43:16 It's also a matter of cost, and obviously hitting some of those green credentials that the NHS organizations need to, evidence. That said, I think even within the NHS, there's still quite a lot of nervousness about cloud generally, and a lot of sites are not really set up to engage with with with cloud providers. I think that's changing. And as it does change, I think we will see more interest in cloud hosting and outsourcing that to us. And I still think that is the the best option for them. But I think that that nervousness sometimes remains. And so we have to be able to provide both on prem cloud hosted by them and cloud hosted by us, and we're able to do all of those options.

44:14 That's the same question. Are you frustrated at the speed of progress until you see that speeding up? That not your fault, by the way. You were doing great. Well, thank you. Nice of you to say I'm always impatient and always wanting to be going faster than they are. So I'm and Ash will tell you I'm perpetually in a state of frustration. But that said, I think the company has done very well during the period. I think we've positioned our products extremely well. And certainly with the political pressures that we're seeing at the minute and the funding, we certainly believe we are in the right place at the right time with the right product. And, certainly, the conversations we're having at the minute and the tenders that we're seeing coming through, I think we we should be there at at the right place, and we should be seeing good news coming coming our way.

45:11 We've always made a point of balancing the expansion and and the spending of cash linking that to opportunities. And as a result, we've maintained a very strong cash position and a and a good closing cash balance for the period. When we think that the right moment is there and we see the contracts coming through in a defined way, we will scale to meet those opportunities. But as I think I've mentioned before, typically, particularly in the NHS, the way that they contract is in annualized contracts paid upfront. So a lot of the cash needs for expansion will actually be met by the award of those contracts themselves. So we should be appropriately capitalized to meet the the expansion needs that we that we see.

45:57 And, actually, I don't know if you've got anything further to add on that. But No. No. I think that I think that's absolutely right. I mean, you know, we do we do benefit, of course, from annual payments upfront. And, you know, what we tend to see is that full usage of a contract is is is is is not there until you're a few months down the line. So our cost don't immediately start increasing and delivering the contract immediately, which also helps. Got a good question here. Should Stephen Barkley be mandating take up throughout the NHS? How have we reached a position where there are so many trusts? Isn't that inefficient? Yes. I think it would be fantastic to see Stephen Barkley mandating this this product.

46:43 I think certainly, the profile of and what we are doing in Sussex has gained some national attention, both within ICSs, but also within some central bodies. We we can't say a huge amount more on that, but, it's safe to say that interest around has reached the very top of the system. And, whilst that may not lead necessarily to a national award, it certainly helps to drive pressure down on the regions to buy this sort of solution. And fundamentally, as we've outlined, if you're just running CDCs, generating diagnostic results, you're just gonna create a backlog of diagnostic results that aren't really actioned, that need reporting, and aren't moving a patient's journey forwards. What we do is that missing link in the in the chain, we actually bring those diagnostic results, put them under the nose of the specialist that has to make those decisions, and we enable those decisions to be made in a very effective and efficient way linked back to the GP.

47:50 And as a result of that, you really aren't gonna see a backlog reduction through the CDC program unless you're using our technology platform. And I think we're seeing increasing awareness of that at every level of the NHS. Feedback has recently exhibited in Dubai. Could you comment on this event whether you have received any interest, any follow ups that would likely turn to potential contract signing? Could you also comment on the recent crisis with the NHS? Thank you very much. Yes. We have actually just been out to Dubai. We weren't actually exhibiting in Dubai. We were attending the conference as delegates really to nurture some some interest in the the market and to really scope the market out there, but actually also to meet with some of the OEM providers that we are looking to partner with potentially for the NHS and other international opportunities.

48:49 And these were the same providers I was meeting with in Chicago before December. So it was a slightly multifaceted meeting both to see whether there was an opportunity for us in The Middle East linked to what we're doing in India and and in the NHS, but also to speak to some of these larger partner organizations around how we might deliver some of our services together. But I can't say a huge amount more on on that for for obvious reasons. Could you comment on a recent crisis with the NHS? It's it's certainly a pretty terrible and dire situation, but one I think we can definitely help to alleviate. And as we mentioned before, I think it's a matter of being in the right place at the right time with the right tool. And I really hope that the NHS does adopt it at the pace we all are looking for because not only is that good for us and and for for all of you, but it is it's also good for the country and for patients.

49:51 And I I'm really passionate that this technology gets to where it's needed because it's it's why we all fundamentally turn up to work for this company because we know we're making a difference with the technology, and, obviously, also to get you the return that you deserve off the investments that you've all made. So, yes, it is a crisis. We have got a solution, and and we're pushing hard for that. Tom, your screen seems to have frozen, actually. Oh, am I can you still hear me? Yes. I can hear you, but your screen seems to have frozen. Oh, dear. I I hope it's not in a bad bad shape. You can view it back later. What sort of care what sort of revenue can CareLocker generate, for example, from one diagnostic center?

50:46 Did you wanna cover that one off, Finesh? Yeah. Sure. So it's it's it's it's very early days, and it really depends on the uptake from each imaging center. So Sampuna, for example, has around 15,000 images that it processes each year on 15,000 patients, I should say. If there's a 50% uptake for CareLocker and we achieve the kind of pricing that we're targeting to achieve and we are still working through different pricing models, one could see, you know, an imaging center like Sampoerna generate revenues of in the order of £30,000, you know, assuming a 50% uptake at at at an average price point of, you know, between 5 and £8 per patient per year.

51:34 And as I as I said, it is still very early days, and, you know, we may need to flex pricing up and down, and we need to ensure that we do get that kind of uptake from Care Locker. But that's the kind of you know, that that that that that's the that's the working assumption for each imaging center. And just notice as well that there are 40 imaging centers in indoor alone. And so just give you some idea of the size of opportunity in in in in in that kind of region in India. I've got another question here, Anish. So Amazon had provided some financial help in India, but what are the other tangible benefits of the partnerships with a, Amazon, b, Cure, and c, Axial three d? Okay. So, yes, Amazon Amazon essentially have covered the the hosting costs of delivering this TB screening pilot with Cure dot ai.

52:34 Obviously, the relationship having someone like Amazon partnered with us gives us huge amounts of credibility and has also allowed us to have some quite meaningful conversations with large stakeholders in India. I think the the other non cash values that we're we're seeing from this are really about the deployment of AI technology through our our platform. This is just a great use case for it, but there are, numerous clinical areas where AI is making a a sort of inroad. And I think what this has enabled us to showcase to the the wider health care system is that you can use an application such as Blipper to be a front door for deploying AI technologies generated by third parties.

53:24 I mean, lot of the time the cure algorithm is actually being deployed on a on a mobile device, which is using bleeping and displaying the the images. And to be able to use AI tools in a mobile first way really shows that FEEDBACK in bleeping can take AI and put them right into the hands of clinicians. And and that is something that actually very few platforms can can offer. So I think it's building a market position for our tool as a frontline AI deployment tool as in addition to, obviously, the the core principles of of TB screening. And and in terms of a clinical outcome linked to that opportunity, I mean, it's transformative. Firstly, being able to acquire an X-ray in that sort of setting, send it up to the cloud, have an AI interpretation within seconds of that image being acquired is, revolutionary.

54:23 And then further to that, because of bleepers' ability to then share that image with a specialist who can give advice and guidance on the treatment and management of the patient while they're still there in the screening episode. It's a sort of compounding of the value proposition. So not only can I deploy an X-ray machine to almost any rural location, acquire an X-ray, have an AI interpretation, but I can then also have that, backed up with specialist expertise from someone who could be hundreds of kilometers away? And so it allows it essentially removes the geographic parameters of care, which although very exciting in India is actually also of interest slightly closer to home in the NHS, and also internationally, it turns out. So, yeah, there's a lot of benefits that arrive from that, not just the financial support from Amazon and obviously the the partnership with them and Cure.

55:19 But I think also the positioning of the product for for opening larger market opportunities. Nesha, are you still there? Because your your image has now dropped off my screen as well. Yes. I'm still here. I think I think I think the hosts took both the videos down just to avoid them both being frozen. Okay. Great. Okay. I think the remaining question seems to be one that we've covered. I'm just going through the list. There's one that's just coming. Can you see feedback working with cure.ai in other countries in the world, re TB and other conditions? Short answer is is absolutely yes. I think there's interest in doing some stuff close to home within the NHS. I think there's also some opportunities in other international markets.

56:14 A cure like ourselves are very interested in international opportunities. They're looking at broadening the scope of their AI from beyond TB to wider lung diagnoses. They're also developing modules for stroke and various brain abnormalities, and I think their appetite will go even further to upper body areas. So I think they're a really good partner for us in that I think their AI will develop in line with Blipper, and we should start to see some interesting opportunities that they open up and we go into and vice versa. Just conscious of time. And how how much long have we got? Have we got time for one more? Yeah. You've got time for one more if you'd like to answer.

57:09 Okay. Let's find one that's not too long. Has the pilot at Orissa concluded? No. But the the pilot is actually still live in in ERISA because we're taking the steps to now regulate and and register BLEEPR as a medical device in India, and that has put a bit of a time gap on when we can fully commercialize the product. We're not actually looking to establish any more pilots of the TB screening solution in the interim. I think both ourselves and Cure and AWS have felt that we've generated sufficient evidence to show the value of the prospect. We now need to build the relationship with the telco partner as part of that consortium bid and then to be in a position where we can actually commercialize at Bleepr and generate revenues from it, and that will be post the the accreditation.

58:05 So in the meantime, we we're just keeping the the current deployment live. Amazon are covering the the hosting cost of that anyway And having generated a clinical service that's generating benefits to the community, we we want to keep that going. It wouldn't be right to to pull that out. So we're continuing with that for the time being. Tom, Anish, thank you. And, of course, and I think you have addressed all those questions you can from investors. And, of course, the company will review all questions submitted today, and we will publish those responses on the investor me company platform. Before redirecting investors to provide you with their feedback, which I know is particularly important to the company, Tom, could I please just ask you for a few closing comments? Yeah. Would mostly thank you, everyone, for your your time.

58:54 Would like to be able to do this in person at some point because I think it's nice to have a a more bidirectional conversation. But this is a fantastic platform, and it and it's been lovely to be able to present this to you. I think we're looking at some very exciting opportunities in the NHS and in India and increasingly in international locations. The value proposition of our technology is as relevant overseas as is here. And with the NHS in the crisis state that it is, I think we really are in a place where we can have a large impact and hopefully generate some good commercial returns for for you as shareholders. Tom, Anish, thank you for updating investors today. Could I please ask investors not to close this session as you'll now be automatically redirected to provide your feedback in order that the management team can better understand your views and expectations.

59:45 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 FEEDBACK PLC, we'd like to thank you for attending today's presentation. Good afternoon to you all. Thank you. Thank you.