ImpediMed Limited

Pamjot Bains, the CEO and Managing Director of Impedimet. Pamjot.

Great. Thank you. Good morning and thank you for joining us to discuss the Q1 FY26 results. We're using our new Impedimet Investor Hub to host the webinar and I'm pleased to be here with McGregor Grant, our CFO. and Scott Long, our SVP of Sales. We'll be referencing the 4C quarterly activity report and presentation we launched this morning with the ASX. The presentation is a summary of the more detailed 4C. After our remarks, we'll be taking your questions. You can lodge your questions through the presentation, throughout the presentation using the Investor Hub Q&A function. A couple of opening remarks. I've just returned from two weeks traveling through the US, managed to get a cold, hence the voice is a bit weak. I've spent much of the time in Texas meeting with customers and potential customers in lymphedema, heart failure, and in body comp. It's always been really invigorating meeting with the clinicians who are using SOZO with their patients and also seeing the opportunity that is created through the lymphedema business to extend into other indications. The demand for SOZO and the value it generates for patients and clinicians is clearly very evident. I was especially encouraged with our heart failure meetings and the feedback we received for SOZO Pro and the level of information that the new device provides. And I think also what's happening with body comp in the United States is nothing short of astounding. We just don't have anything like it happening in Australia, although I say that yet. From med spas to longevity and hydration clinics, the entire space is exploding on the back of the GLP-1 drugs, with many of these clinics now prescribing GLP-1 drugs to provide weight loss management services with customers. It's something we'll talk about, but it's clear that ImpedaMed has a bright future with lymphedema, heart failure and body comp. So let's move on to the presentation and begin on page three with a quick overview of the agenda for today's call. Great. So we'll start with a business overview, including the key highlights, and then take you through the updates for the three initial business segment updates. Scott Long, our SVP of sales, is on the call, as you can see, to provide his perspective on the first six months at ImpedaMed. I'll then hand over to McGregor to present the financials. And to finish, we'll cover the outlook for the balance of the calendar year before commencing the Q&A session. Now turning to page five. One clear insight that was reinforced on my trip for the last couple of weeks was a value proposition that the Sozo Digital platform provides. We have a best-in-class product that provides valuable patient information for clinicians. Clinicians find it quick and easy to use, and in the larger hospitals, they continue to add new devices across departments with different use cases. And we expect that will only continue with focus and effort. We're in a unique position. We have the only device of its type, a best device with multiple FDA clearances across the applications, and have invested in the device so that it stands apart from the competition in terms of FDA clearances, its accuracy, usability, and applicability. We have now over 600 devices now across the US healthcare system, including SOZOs and 18 of the top 25 US hospitals. And it's not just about the validation that this provides, but also the ability to leverage these relationships that we have built and leverage the time and effort in meeting the requirements for the security of patient data that enables us to extend the product. It's easy to underestimate the processes required to become established in these hospital systems. Getting a device approved at a hospital isn't quick. There's legal contracts, budget and IT approvals, and it can take months. But once these are completed, adding a second or third device within a hospital system is a much faster process because these hurdles have already been cleared. That's an exhaustive process, but once done, it applies to secondary devices in that hospital or other hospitals within that system, irrespective of the application, i.e. lymphedema or heart failure or body composition. And we have multiple MSAs and master service agreements that open up the potential for expansion in over 1,500 related hospital networks. That's a big advantage. The opportunity for us is to leverage everything we have done and maximise the revenue across the cost base that is largely set. And thankfully, it's happening to coincide with some of the fastest growing thematics in healthcare, cancer survivorship, GLP-1 therapy, and the going cost of treating heart failure. I remain very positive for the long-term outlook of Impedamed. Now, turning to page six, we will touch on the key highlights for Q4. So financial metrics, they remain positive, and I'll let McGregor go through the metrics in detail later in the presentation. Reimbursement. Now, this was clearly the standout for the quarter. Reimbursement is absolutely critical for the success of US medtech companies. And since June 30th, we have seen a reacceleration of payers updating their policies to include BIS as medically necessary. In the last quarterly, we mentioned a large payer commencing coverage. Since then, we've announced another top team player, publishing positive policy. And even more recently, another four Blue Cross Blue Shield plans have updated their policies to include this. To put this into perspective, since the 30th of June, states with over 80% coverage have jumped from 25 to 42. And states with over 90% coverage has almost quadrupled from 7 to 27. And these aren't small states. The top nine states in population in the United States now have more than 90% coverage. These changes are recent, as we expect they will have a positive impact on sales over the coming quarters. In terms of sales, overall unit sales were up on the quarter prior, but US sales were softer than we had anticipated. Even deep into the quarter, we're expecting a closer result to what we produced in the last quarter and in line with our own internal forecasts. We tracked the opportunity through the process and a number reached the final sign-off. but were then held up, not denied, but just not approved yet. Some have come through post the end of the quarter, and some are still sitting on the CFOs and purchasing managers' desks. We do expect to see a bounce back this quarter, and the team is working hard to deliver. We've also brought Scott Long, our SVP of sales, to the call, and I'm looking forward to introducing Scott shortly to give you his perspectives. Now we're going to touch base on the three applications for SOZO, lymphedema, heart failure, and body comp. So first, over to the breast cancer-related lymphedema. I've touched on a number of these points earlier in the presentation, so I won't go through them again. But what I want to do as a takeaway for you is that lymphedema is primed for growth, and we remain very optimistic about the opportunity. And what I'd like to do now is introduce Scott Long, our SVP of sales. We were really pleased to have Scott join Impedimed. He brings with him over 30 years of experience in breast cancer medical devices, and with that, a deep understanding of the space. He spent his career building strong relationships with breast surgeons, and he's used to working with sales teams in smaller companies. This means he not only knows how to get results, but he's got a great network of top-tier sales talent. I've asked Scott to talk about what he's seeing at the cold face, as well as his first impressions of Sozo, the opportunity, the team, and why he's optimistic. So, Scott, over to you.

Thank you, Parmjot. Thanks, everybody, for having me on the call. I do appreciate it. Just a little bit about my background. As Parmjot mentioned, I've got 30 years of experience here in the breast cancer field, working primarily in early stage care. startup companies, a number of them that eventually had successful exits. In addition, my big company sales management experiences with Ethicon Endosurgery, operating division of Johnson & Johnson, and Hologic. So I feel like I bring a unique perspective to the company, as Parmjot mentioned, as a function of having been around for as long as I have. I have not only quite a network of physician friends that I've accumulated along the way, many of whom are either already our customers or are on the way to becoming our customers. But I also have a network of industry colleagues that I've worked closely with through the years. One of them, Lisa Prom, as everybody probably knows, is one of our cornerstone people here at Impedimed. So, you know, what I've learned, from my seven months on board with the company now is that we've got a great opportunity at hand here. As Parmjot mentioned, we've got one of a kind technology. We have no commercial competitor. We have a growing reimbursement network and we have societal guidelines support. So those are unique attributes that most companies don't really have as they go into their competitive markets. As she also touched on, this is a multilayered sale that involves various aspects of the hospital, different stakeholders, oftentimes siloed stakeholders that don't readily and often communicate with one another. So it is the very definition of a complex sale. And as a result, it does take, quite a while to get these deals over the finish line. All that said, we have also some great work on Lisa Prom's part with our master service agreements. So we have an opportunity here as we enter into those systems to go deep into those systems. And I think as a result, once we get our foot in the door in those systems, I think the opportunity for us to sell 10, 15, 20, maybe even 30 devices is very real. Now, upon coming into the company, the only person I knew here from my past lives was Lisa Prom. So I had to sort of size up the sales talent that I inherited here. And there were some really excellent people here, not just Lisa, but Adam Brown comes immediately to mind. And there's some very good, stable, solid people. We did have some holes and some weak links as we deem them to be, and we made some quick replacements and upgraded the profile of our sales team. We brought in three individuals that I had worked with previously, all of whom are A-list players in the breast cancer field. oldest of which at this point has only been on board with us for four months. The newest has been on board less than two months. So they haven't yet really started to contribute the way that I know they will in this upcoming quarter. But I think that's one of the big opportunities for us. One of the things that was critical to me to do was to really change the culture of the sales organization and get people that were very results-oriented, very successful track records, people that were very positive, optimistic, self-starters, and people that really wanted to be part of a winning team. We want to stabilize our sales team here. We've had an issue with turnover of key players in the past, some of which were very good players. We're going to bring that to a stop here under new leadership, and I'm very, very optimistic we can do that. As far as the market opportunities themselves, as Parmjot touched on, breast cancer-related lymphedema is a platform that I believe will grow steadily over time. And I think over time, it'll be a tremendous business for the company that we can all look back and be proud upon. It's really the legacy of the company. Body composition is very exciting. There's this new emerging area called exercise oncology that's garnering a lot of podium time at breast cancer meetings. So I think we're uniquely positioned to capitalize on that. It's a more competitive marketplace, but we've got best of breed technology. And although we don't have a CPT category one code, in that area. I think there are ways around that and we've been creative in putting forth programs that I think the market will readily adopt as we get a little further into this. We're still very much in our infancy with Adam Brown heading it up for the company. Last but not least is heart failure, which certainly cardiovascular medicine is part of my background. I had a seven year stint in CV medicine before I got into breast cancer care. And I think that Sozo Pro is really uniquely positioned to really have an impact. and help heart failure patients everywhere. I think it's really going to be probably the greatest value driver for the company over time. And I think it'll benefit patients, our employees and our investors alike. And I'm really looking forward to what I think the next couple of years will hold within the heart failure franchise.