ImpediMed Limited

Thank you for joining us to discuss the Q1 fiscal 27 results. I'm pleased to be here with McGregor Grant, our CFO, along with our brand new Chief Clinical Innovation Officer, Nicole Stout. We'll be referring to the 4C quarterly activity report, which you just received, and presentation we launched this morning with the ASX. After our remarks, we'll be answering questions. You can lodge any questions through the presentation using the Investor Hub Q&A function. McGregor, I'll begin with slide three with an overview of the agenda for today's call. I'll start with the business overview, including key highlights and take you through an update on each of the three business segments. I'll then hand over to McGregor to present the financials. And then I'll finish up with some closing remarks and cover our outlook for this quarter before handing it over to Nicole as an introduction to her background, her insights into the cancer survivorship space, and why she's here. will then open it up for Q&A. So now turning to slide five. I know many of you will have only had a chance to briefly read the 4C Activities Report and you will see my commentary at the end, which I will refer to throughout the webinar and my recap of Q1. We start from a genuinely strong foundation, an FDA cleared, TGA cleared, CE marked digital health platform with a now complete clinical and commercial leadership team that is building the right field team to drive commercial execution. We have seen some exciting developments with new standards and clinical applications in cancer survivorship this past quarter along with expanding the clinical evidence and FDA indications in heart health and the extension of our new clinical applications and partnerships in weight management and body composition to support long-term growth. While these new standards and heightened focus on cancer survivorship is great, It's on the commercial and clinical team to execute on these tailwinds. And lastly, number three, what makes this durable is the platform itself. 662 devices in leading U.S. healthcare systems, 27 IDN partnerships representing over 1,400 hospital opportunities. And an infrastructure we can leverage across cancer, heart health, and body composition without rebuilding from scratch for each one. Now as we move to slide six. On the financials, McGregor goes through some of these in detail shortly in the presentation, but clearly there were some positives as well as some areas we need to do better. The sales metrics are encouraging, but definitely below where we'd like to see them. Quarter on quarter revenue increased, and we have seen a reduction in operating cash flow consistent with expectations. Regarding sales, overall unit sales was 47 units, up on the prior quarter with 28 units sold in the US compared with 36 in the prior quarter. Again, this is not something we as a team are satisfied with. We continue to see growth in our average price attached to contract renewals. Later in the webinar, I will share more on our commercial leadership in sales and the action plan with our field team. On the reimbursement side, while there's been no change during the quarter in the level of reimbursement, National coverage is over 95% representing 331 million covered lives. This level of coverage is sufficient to support new customer acquisition and re-engagement with existing accounts, giving our clinical teams a concrete reason to help our customers increase utilization. Turning to slide seven to discuss lymphedema and cancer survivorship. Although sales in the quarter fell short of the company's expectations, There are converging factors both externally and internally that continue to confirm our confidence with the opportunity across cancer survivorship and our lymphedema plus strategy. Most notably, the National Accreditation Program for Breast Centers, otherwise known as the NAPBC, released its 2027 standards, including a new standard 5.8, which requires their 540 accredited centers to implement a lymphedema surveillance program for all breast cancer patients at risk. Our recent FDA clearance for sarcopenia risk assessment opens the door to providers beyond breast surgeons that are monitoring patients during treatment and in long-term recovery, supporting the clinical pathway to execute our lymphedema plus strategy. With new clinical and sales leadership in place, we're addressing performance-driven turnover within the sales team and building the right team to execute on this opportunity. Let's take a closer look at the new NAPVC standard in slide eight. So the new 5.8 lymphedema assessment standard is required. This isn't an optional or nice to have or a recommendation. In addition, existing return to wellness and surveillance standards can also be addressed with the implementation of a lymphedema surveillance program. Even if the ability to support opportunities in addressing three standards with one program using SOZO. Looking forward to Nicole talking more about that at the end of the call. This is referenced directly in this standard and is the only method reference that is objective, fits into existing clinical workflow and is reimbursed. With a January, 2028 date for compliance, this is the priority target for the commercial opportunities. As we are currently only 25% penetrated Moving to slide 9 and our new sarcopenia risk indication. Our recent FDA clearance for sarcopenia risk assessment adds a clinically relevant output before, during, and after cancer treatment. As low muscle mass is directly linked to worse outcomes in chemotherapy treatment and tolerance, long-term health, and the risk of cancer recurrence. We have already witnessed how this expanded indication is having an impact with opportunities and unlocking access to key stakeholders beyond lymphedema. For example, in thinking back to the stakeholder map that I'll discuss a bit later, but showed you all last quarter, our sales team has mentioned that more and more of these NAPB discussions, guideline driven meetings are now including multiple stakeholders across surgery, radiation oncology, medical oncology, nurse navigation, and Cancer Service Line Directors. That is how you advance deals, having all the stakeholders involved in the conversation from the outset versus relying on a single surgeon champion expecting them to drive broad compliance and implementation. Slide 10, McGregor. Now I'll speak to our leadership team, which in my opinion, this slide is as important, if not more important than any slide in this deck. And I've had this tone since the day I took the job and what I focus on. We now have a complete commercial leadership team with two key roles added since last quarter. And as you can see, just under half our leadership team has been here less than six months. Gina Kimball in commercial ops is the veteran of that group, having started in June, and Blake Atos started less than four months ago in July. Dr. Nicole Stout joins us as Chief Clinical Innovation Officer, effective November 1st. Nicole is an internationally recognized authority in cancer survivorship and rehabilitation and has built a network of C-suite and program leaders in cancer care and survivorship in her 25 years in this field. Nicole will show more about her background and insights to this segment at the end of the call. Erik Johnson joined the company in August as head of sales, replacing prior sales leadership. Erik brings more than 15 years of MedTech sales leadership experience 12 of those years at Hologic where he consistently exceeded sales targets. Erik's first priority has been to assess and rebuild our sales team, and we're excited about the new hires that Erik is working to bring onto the team, as well as some of our more tenured reps that are liking Erik's leadership style and focus. I believe we have the right commercial leadership team in place to capitalize on the cancer survivorship opportunity in front of us. With the convergence of new standards, our clinical offering, and this leadership team, We're well positioned to win. I'll also note that it's been fun for me personally to watch the rest of the leadership team, a group of talented people that I inherited six short months ago, blend extremely well with the newer members as we all share a fierce sense of alignment and accountability to one another. We had the full team together in person earlier this month. Nicole Scott was there as well as McGregor and the step change in culture was palpable. That's what wins, and it sets the tone from the top down for how every team and function needs to operate in this organization. Let's go back to slide 11 on the key stakeholder map I just discussed and talked about in last quarter's update. We know this is a complex sale, but this shouldn't scare you. I got news for you. Most sales in US MedTech are complex. The business I most recently was running had numerous customer stakeholders involved in every sale. and the Salesforce members or leaders that couldn't play across those different levels simply didn't last long. For us to be successful, we'll need to effectively move beyond our historical champion, the breast surgeon, to the who and where in the patient is being cared for along their diagnosis, treatment and survivorship journey. There can and will be multiple clinical champions driving a system-wide opportunity. The breast surgeon remains an important piece of that map. As I previously mentioned a few pages ago, We have already seen the impact of our new sarcopenial risk assessment indication opening access to medical oncology and survivorship leaders where lymphedema alone doesn't capture the appropriate mind share. With our customer success, sales, and clinical leadership team in place, we're well positioned to quickly understand what these care pathways look like within our customer base and new opportunities. This is what allows us to position SOZO as an enterprise solution and the anchor for longitudinal objective measuring across the patient's treatment and survivorship journey. Now to slide 12 to discuss the progress we're making in heart health. While there were no heart failure sales this quarter, our focus remains on building the clinical evidence and customer foundation for scalable adoption. We are working with a prominent large health system with 44 heart failure clinics, actively enrolling patients in two studies. The first using SOZO in heart patients with frailty, and the second using SOZO in comparison with the market-leading implantable pulmonary artery pressure monitoring system. This is coupled with our FDA application to expand our clinical indication across additional cardiovascular conditions. Along with the clinical evidence generation, we're also pursuing collaboration with leading device companies in this space to conduct bench testing alongside active implantable technology. with the goal of broadening our patient population reach for SOZO Pro. We're progressing multiple multi-system opportunities and increasing visibility with participation in two national heart failure conferences in the last four months. We remain deliberately paced with our investment in heart health until the segment demonstrates the momentum to warrant investment at scale. The small customer facing team focused on this every day remains excited about the future. Let's turn to slide 13 to discuss weight management and body composition. So we continue to see significant opportunity across our four key body composition segments, primary care, sports medicine and research, wellness and longevity, and medically managed weight loss. Although sales fell short of expectations this quarter, the FDA clearance for sarcopenia risk assessment together with the existing indication to assess body composition in unhealthy patient populations extends the clinical relevance of the SOZO platform with GLP therapies as a common thread across these segments. We are excited about our partnership with Dr. Jessica Shepherd. Dr. Shepherd is a recognized leader in longevity medicine and OBGYN by background, chief medical officer for HIMSS-HERS and CEO of Sanctum Med and Wellness in Texas. Dr. Shepherd will be instrumental as a SOZO advocate in the longevity, women's health, and concierge medicine space. Dr. Shepherd is delivering an education session in partnership with Impedimed at the upcoming American College of Lifestyle Medicine conference next week in Orlando, Florida. Having personally worked with Dr. Shepherd in the past, her impact is consistently felt and it's an honor to be working with her again. In addition, we have upcoming presence at obesity medicine and wellness and longevity national conferences. As we're learning across these market segments, we have right-sized our direct body composition sales team, and in parallel, are pursuing partnerships with larger strategic players to drive scale more efficiently and control our direct cost basis. We can now go to slide 15, and McGregor will go through the financials. McGregor, I'll kick it to you.

Thanks very much, Erik. So this is the cash flow slide, and from this you can see that the total operating cash outflow for the quarter came in at $2.5 million, which was in line with our expectations and down $2.4 million versus the last quarter. The main drivers of the lower operating cash outflow were lower product related costs, which were down $800,000 compared with quarter four, and this was mostly driven by the timing of inventory purchases. And staff costs, which are the largest cost component of the business, and were down $1.2 million compared with Q4. The Q1 net cash outflow reflects the actions implemented to reduce the operating cost base by approximately $5 million on a full year basis. The company's cash balance at 30 September was $11.6 million, equating to 4.7 quarters of operating cash flow. On to TCV and ARR. TCV for the quarter was $4.4 million compared with $5.5 million in quarter four. The reduction was driven by a lower volume of contracts that were due for renewal in the period. Believe me, on average, there was an 18% price increase for contracts that were renewed during the period. As previously mentioned, we sold 47 SOZO units in the quarter, of which 28 were in the US and 19 in our rest of world markets. Regarding annual recurring revenue, contracts in place at 30 September 26 are expected to generate ARR of $14.9 million for the 12 months to 30 September 27. In constant currency terms, compared with Q1 FY26 a year ago, ARR was $16.1 million, up 12%. As Erik has already discussed, unit sales, you can see the installed base is close to 1300 units with 662 units placed in the US. And patient testing continues to trend upward, 8% on the prior quarter, with a three-year compound growth rate of 17%. So before heading back to Erik, I'd like to add my own reflections. The challenges we've faced have forced us to implement changes that strengthen the business for the long term. We now have a sharper focus, a stronger leadership team, and have significantly improved our cost base. I'm very excited that the work we are doing is building on a platform for sustained growth and long-term value creation. So I'll just pass back to you, Erik.

All right, thank you, McGregor. Appreciate those thoughts. All right, over to slide 19, some additional thoughts here on the Q2 outlook. So every week that I spend with customers, KOLs, our team, The message is consistent. Cancer survivorship needs an objective clinical anchor. Treatment impacts patients in many ways from lymphedema to muscle loss to changes in body composition and the customers we're talking to are aligned that caregivers and patients need a reliable way to measure and manage all of it. That's exactly what SOZO does. With the new standards that will drive lymphedema surveillance programs within NAPBC accredited sites, we have a unique opportunity to drive SOZO as that objective anchor across survivorship programs. Our pipeline remains strong and continues to grow, and it's clearer and cleaner than ever. But we need highly engaged and talented sales reps in every seat to go execute. With the new sales leader, several newer experienced reps now in place, and more in the hiring process, there is a ramp to meaningful countrywide productivity and to the larger system-wide deals this opportunity demands. We're solidifying strategic and KOL partnerships in the weight management and body comp market segments and have validated that we're in the right segments with the right solution. And we're building the clinical evidence, industry collaboration, and regulatory clearance in the heart health segment to support commercial reach and broaden the patient populations the technology addresses. Our sales performance this past quarter was not acceptable. Leanne Ralph AAICD and a relentless focus on results. Make no mistake, the urgency inside this company has never been higher and neither has my conviction in this opportunity. So thank you to our investors for your continued support and to our employees around the world for their commitment in achieving our shared goals. Before I open the webinar for questions, I'd like to invite Nicole Stout to introduce herself and share her thoughts as to why SOSA should become the standard of care in cancer survivorship. Nicole Stout joining us as Chief Clinical Innovation Officer says a lot about where this company is headed. Nicole is one of the most respected voices in cancer survivorship and rehabilitation in the world, and she brings a unique combination of clinical and business strategy. That matters for our customers, for our team, and for the credibility of what we're building. Over to you, Nicole, and welcome.