Mach7 Technologies Limited

Good morning everyone and welcome to the Mark 7 Q3 FY26 Result Briefing. My name is Françoise Deberlac and I'm Head of Investor Relations for Mark 7. Today our CEO Terry Thomas, CFO Daniel Lee and EVP Sales and Marketing Todd Stellard will provide an overview of our Q3 results. We will then open it up for questions. If you have a question, please submit it via the Q&A text box at the bottom of the screen. I'll now hand over to Terri.

All right. Thank you, Francois. And hello. And I want to start by thanking all of you for your continued support of Mach 7. I am currently talking with you from Canada, our excellent eUnity development hub, and just coming from our new very entrepreneurial and less expensive office in Vermont, and before that, from visiting Class, which is the company that provides customer insights about health technology vendors, which are often referenced by potential buyers globally. Class is based in Utah, so I've been on the road a bit. During this build phase in our strategy, I'm spending the majority of my time in North America, and that's to be with my teams, with customers, and with future customers. Very important to be in the field, and I'm showing up myself with energy, urgency, and a startup mindset, because this company is a bit like a startup, but it's coming from an enterprise-grade foundation. Now, we started this reset six months ago, and our vision has grown while our costs have reduced. I know our share price volatility has tested some patience, and the market is has not made it easy to be a Mach 7 shareholder lately. I don't ignore that, and I don't hide from it. I take it very seriously, and I believe our future will be different. So I bought some stock myself, as have some directors. We collectively believe in Mach 7's future. So today I'll cover a little bit about our present, talk a bit about our future, what we delivered in Q3, progress on our reset, and how this translates into our outlook. Next slide. So a little bit on our vision. Mach 7 is moving beyond storing and viewing images. We are building the engine that organizes and connects imaging across the enterprise. And when we say from pixel to point of care, we mean shifting from disconnected images to imaging as a core part of the patient's record, bringing together radiology, pathology, video, and other clinical images into one integrated view. And that's how we'll compete and complement, complete and complement the traditional patient record. And as healthcare becomes more AI-driven, value will shift to that data layer. And that's where Mach 7 is positioned to win. Next slide. Now, this is a shift. And yes, I had to include at least one slightly wacky AI-generated slide. The slide's a little weird. because the future will feel a little bit weird too. AI is everywhere, and it is the future. I just came out of a strategy retreat alongside our visit to class, and our theme was operating as a performance team and leveraging AI. And as a hockey fan, I love Wayne Gretzky's quote and applying it to us. We have to build for where the puck is going, not where the puck is. The future will be different, and that is not threatening to us. like it is for many software companies who put their focus on complex user interfaces. For us, it's an opportunity. AI will change how people interact with software and how decisions are made. For years and years, people have been trained on how to use software. Now, software is being trained on people and their preferences, and AI will be a main interaction engine for many types of software. And we at Mach 7 are building for just that. AI is only as good as the data behind it. In healthcare, imaging today, imaging data particularly, is fragmented. It's hard to access. It's disorganized. Pair that with one of the biggest barriers to leveraging AI, trust. Many people don't have any idea exactly how AI is generated, where that data comes from, and can you trust it? That intersection of fragmentation and trust is a problem. But for us, that problem is opportunity. Trust and truth will define AI adoption, and that's exactly what we're building, the imaging foundation for AI that you can trust, stored in the right place, served up in the right way, Watch for more on this in our next Q4 and our year-end webinars. But for now, let's turn to the financials. Next slide. All right. We're seeing some clear progress following the operational reset we initiated in the first half. So starting with recurring revenue, ARR closed at $22.8 million, up 2% in constant currency quarter-on-quarter. Growth was driven by renewals, by expansions and upgrades, reinforcing the strength and durability of our recurring base. CAR was $25.8 million, including $3 million of contracted backlog, to be recognized as customers' reach for productive use. Then on sales. Q3 sales orders totaled $6 million in TCV, up 25% from $4.8 million in the third quarter of 25, reflecting continued underlying demand for Mach 7 solutions and improving partner execution. From a cash perspective, Q3 was operating cash flow positive at $1.2 million, representing a significant improvement over the second quarter and driven by increased efficiency across the business. Cash receipts were $8.1 million, up 2.7% quarter-on-quarter, as billing and renewal timing continues to normalize. On our costs, operating payments were down 15% year-on-year and 13% quarter-on-quarter in constant currency. We are proud to share that this discipline has been achieved while continuing to invest in product, partnerships, and pipeline generation. Our product and operating costs increased over the prior period, reflecting targeted investment that will support future revenue growth. We closed the quarter with $19.2 million in cash, no debt, up from $18.5 million at the end of December, maintaining a strong and flexible balance sheet. Overall, Q3 reflects improved financial discipline, stronger cash generation, and a more efficient cost base. Put simply, we are improving profitability while continuing to invest in growth. Next slide. Now, we've progressed key elements of our strategy. Our financials reflect that. We're working through our reset, but we continue moving from archive to architecture. With Brian Weerle now on board as our chief technology officer, we're sharpening our product roadmap and adding more feathers to our flamingo. expanding the modular platform which orchestrates and transforms imaging data into something are more usable, portable, and intelligently accessible. We are leaning into the cloud where it creates real value, but recognizing it is not a one-size-fits-all solution. Our approach is deliberate, enabling smart strategic migration that meets customers where they are and moves them forward. We've accelerated the cadence of VMA releases, and digital pathology viewing in eUnity 7.9 is progressing very well. It will be provided to two university teaching institutions in the U.S. for reference and referral viewing of whole slide images, and we're also in conversations with a veterinary pathologist group for diagnostic use. E-Unity can be used for veterinary because it doesn't fall under the same regulatory scrutiny as us humans for digital pathology. So it's a great way to validate this new technology safely. Our developers, they're busy. But I've invited Todd to join and talk more about our commercial execution. I know what investors want to see, sales. This is a top focus area for us. I've spent a lot of my career in sales and in healthcare technology sales specifically, and I love it. To educate you, though, these are typically long sales cycles, often 12 to 18 months. But the good news is that we have some opportunities at the tail end. And with Flamingo, we're also seeing some opportunities that can move through the process faster. So we're now six months into rebuilding our commercial engine. And in that time, we've brought on new staff, materially improved our pipeline quality, strengthened our sales and partner infrastructure. We're seeing strong activity translating into high-quality opportunity growth. And my last point before I hand it over to Todd, marketing is a big focus right now as well. You can't sell a secret. So we're investing now. We're coming out with some sharper new images, some higher volume of outbound marketing, and fresh and crisp content, including a new website. So stay tuned on that. But for now, I'm going to stop talking for a minute and hand it over to Todd. I noted the developers are busy and the sales engine is hot. So, Todd, you go.

Thanks, Terri. Hello, everyone. I'm lucky to be able to partner closely with Terri and the rest of the executives here at Mach 7 as I leave the commercial side of the business. which is sales, marketing, ops, and the partner ecosystem. I do want to talk real quick, though, one item. I want to talk about the business transformation that's occurred here, and I want to talk about how that has fundamentally reset this company both culturally and commercially. We are doing some things that are different than it has been done here. We have, for example, taken each of the executive leaders and we've taken on multiple customers to And with that, we're driving and reinforcing Mach 7's value with those customers, but also building relationship depth. The more intelligence that we understand about what our customers are going through daily, how we can help to, you know, spend our time not only with the product but our future roadmap, it just helps us as a company be a little bit more holistic in where our future vision is as it approaches our new goals around Flamingo, the digital path, opportunities and finding a way that we can help bring our customers along. Terry talked briefly about the commercial reset, so let me give you a little more color. We have completely rebuilt the commercial engine over the last six months. We have refined our CRM. We've put hygiene in place. We have a discipline for engagement around leads. We have now pricing rigor. We have deal inspections, et cetera. We are cleaning up the entire process around how We're driving sales, how we're driving coordinated marketing to drive leads, and where our pipeline goes and stands. As we talk about that, as we talk about our pipeline, we are diversifying our marketing outreach, which is diversifying a lot of the opportunities that are coming in. We are seeing V&A. We are seeing eUnity. We are also seeing opportunities now with the digital pathology pathway. and a couple of other things that will reflect into the Flamingo suite of products. There's also services that we're looking at. But as we kind of go to build our sales capacity, we are bringing on new hires. I brought on a couple in the last quarter. We'll continue to hire, but we're being very selective about those that we're bringing on. We are raising the bar, and we are raising the IT level within the company as we do that. On the marketing front, you'll see some very different-looking Mach 7 products information out there. We've taken a different spin as we've revitalized the social engine, and we're driving our rolling thunder plan, if you will, starting off with our SEM conference that's going to occur in June, and we'll drive that all the way to RS&A, and we'll be using those two primary trade shows as a big kickoff for the refresh of what Mach 7 is turning out from products, from partner engagement, from customer engagement, and our overall vision as we move forward. We'll provide a better roadmap. We're going to come with more energy and excitement. And we will be bringing true innovation and delivery. That is our game. We believe our outbound marketing currently is a little bit more targeted, more focused on markets that we're trying to penetrate. And we have specific call to actions, which is something that collaboratively with our partners, we're able to now drive deeper campaigns, which result in great new quality leads, which we've had a great quarter on leads coming in. So we expect that to continue to accelerate and building our velocity with inbound leads. We will be launching a new website over the next couple of months, so we'll stay tuned for that. We'll make that announcement as we do that. One highlight for this last quarter in regards to presence, we were invited by one of our technology partners, Amazon Web Services health imaging team, We were able to speak at the HIMSS conference in Las Vegas. Outstanding opportunity for us to get more exposure, especially standing next to a large partner that has a significant presence within the marketplace. And while we've been kind of focusing on pipeline refresh and the partner program, we've also continued to drive direct sales. And we feel pretty good about signing a couple of new logos before the end of the fiscal year. When it comes to the partner ecosystem, I wanted to kind of cover a couple of topics there for you. First and foremost, the partner channel is a cornerstone to how we're going to scale. As we look forward to diversifying our sales force, diversifying the marketplace, and going out and really changing the category of where we're delivering our services and our products, we need to look at the ecosystem that we're driving. And to do that, we've expanded the ecosystem in a sense of new reseller partnerships have come in We've revitalized some previous resellers that were involved with Mach 7. We've built stronger cloud alliances. We have AWS. We are looking and playing right now with Oracle, which is really good. That gives us two strong players in the cloud. We have a very strong relationship with Dell from a standpoint of hardware and on-prem. And we also have a great relationship with Ingram Micro, and we're digging deeper into that partner aspect. This gives us an opportunity to get a broader reach, and we're expanding into the Middle East as well with another partner program piece that we have there as a partner that we're going to put in place as a distributor. I feel very positive about that. What does that do for us, though, as we expand and we bring more partners in and we drive this? What it does is it gives us access to more customers. Their customers, it gives us more access to more markets. markets where they may have strongholds, where they have a footprint. It also gives us the ability to drive partner-generated pipeline in addition to Mach 7-generated pipeline, so we can get some scale through leverage of these assets that are partners, and it allows us to get some strategic market penetration as well. The biggest thing of all of it, though, is giving us the agility to increase our speed to market, and that In today's marketplace, with the prominence of AI and our products evolving as quickly as they are, speed to market is critical. And we'll be able to do that with partners that have great reach, and we'll be able to do it with less bodies on our side, lowering our costs, and increasing our margins and revenue. A couple things we are looking at, and as Terry does love differentiators, and I'm a big fan of them. But one of our biggest ones right now that's coming out is the digital pathology solution. It is a key differentiator for us. It's very interesting for our strategic partners. We have the insight to understand that a digital pathology study is roughly three to five times larger than an MR or a CT scan. That, to our data platform partners, is very exciting. And to our on-prem partners, again, very exciting. What do they need to make those things happen for them? They need us. We are the point for them to be able to make that penetration into the market. The customers use us and store their data with them. It's blue ocean for Mach 7, and especially with our eUNI solution, which is very elegant and fast. And Terry, she's sitting in Waterloo. She just got to see that up close and personal, it is a very, very compelling product for us, and we feel really good about it. Besides digital pathology, our parallel route to win long-term is Flamingo. And Flamingo is very important to the path for our future, for new sales, and for new revenue growth. We are driving... Next slide. Yeah. We're actually... Yeah, next slide. I think for Flamingo. Sorry. I thought I missed that. My bad. One of the things we're doing with Flamingo is basically creating a new category, and you heard me say that earlier. The world where we won't have people focusing on what's the V&A, what's the PACs, what they're going to focus on is their data. How do they leverage their data? How do they analyze their data? How do they monetize their data? And that is really through the imaging EMR platform that Mach 7 will provide. Where does Mach 7 see the Flamingo suite of products and services? What does it give us? Well, it gives us a modular entry point. So we don't have to sell the entire solution to make penetration into a customer. We also have the potential for faster sales cycles because we don't have to wait on that long sales cycle of putting in a complete system. We can make penetration with smaller modules and overtake other opportunities. We do have the expansion opportunities within our existing customer accounts to add on, And there's an ecosystem of services that will surround us that will drive new revenue streams for us. So we're very excited about what Flamingo does for us in FY27 and beyond. It supports our ARR growth. It also supports and grows modules and services that we'll be getting feedback from those partners and customers that our executives are engaged with and my team on the partner side is very deeply engaged with. Our goal is to own the broad imaging data platform. and we will get there step by step through the Flamingo modules and services. We're going to start with orchestration, which is our secret sauce, and we're going to drive the expanded API layer into migrations, et cetera, so that our customers, no matter the model, hybrid, cloud only, on-prem only, they will be able to do more and more over time by leveraging the Mach 7 platform. So I'm excited about the current products we've got. I'm excited about Brian being on as the CTO. I'm juiced coming out of our retreat last week. We've got an intelligent group of people leading the company. I look so much forward to coming back in the next couple of quarters and telling more of the story as we drive our growth and our new customers into profitability. So with that, I'll throw it back to you, Terry.

Thanks a lot, Todd. And next slide. All right. So execution is improving across our business. We just had that leadership retreat that Todd was talking about. which really provided a burst of energy, created alignment, sent an exchange of ideas and pathways forward that accelerate our business growth and profitability as our target. You've heard our sales momentum is really strong. I speak with customers, and I know that we've had some delivery challenges in the past, but it's in our past. We are significantly improving every day. Todd shows you how our partner leverage is expanding, and we're focusing on that to unlock growth faster, certainly faster than we could if we focused only on individual direct sales. But really, my leadership team is strengthened. We're investing in ongoing professional development, AI, and making sure I have all the right cheeks and seats. Our cost base reset, and we spend money like it's our own, and we're good with money. So we're embracing AI in every part of our business. Every project starts with can AI accelerate this or is there a cost reduction opportunity? So we've got greater in the business. Our execution has changed significantly for the better, and we are now operating with far more control of the business. Next slide, on to Outlook. So I mentioned fiscal year 26, a transition year for us. And as we noted, we expect fiscal year 26 revenue to be approximately 15% below fiscal year 25, primarily driven by lower services revenue and delays in capital deal conversion. On services, we expect the revenue to recover as new contracts come online and as we expand our offerings, such as data migration and the services wrapping around Flamingo. And on capital contracts, We are progressing several opportunities. Timing remains impacted by procurement cycles and, in some regions, geopolitical disruption. It is more about timing than it is about demand. And those are capital deals. Our emphasis is recurring revenue, so our reliance on capital deals will be declining over time. and our pipeline, especially for recurring revenue deals, is solid and growing, and we expect it to convert to car growth, and eventually that will translate into revenue as conditions stabilize, we work through the sales cycles, and we get new customers live. So with intact underlying demand and stable recurring revenue, I feel as a company we are actually in a very good place. We're building a more predictable, higher-quality business, and the foundation for growth and profitability. So to close, we've done some hard work, a lot of work in this reset, and there is more energy, there's more focus, and there's more accountability to our business. But it's not a continuation of a Mach 7 business doing the same but trying a little harder or doing a little better. We have shaken up the business, rebuilding with a fresh performance team, data-driven, AI-enabled. And we're building the imaging data layer for AI-driven healthcare. We're doing both because that's where the value is going to be. We will outperform our competitors. We will realize that vision, and we will win. That's my quarter. Thank you.

Comments? To wrap up, questions? Go on, Francoise. You're on mute.

Francoise, you're mute. Sorry about that.

Okay. Thank you. We're on. We've got a few questions from the live chats, and so I'll start with the first one from Andrea Hewitt. Can you provide some colour around our latest class results?

Okay. Our eUnity is doing really well. It's teetering between number two and number three in the viewing segment with largely positive comments. There are opportunities to improve, which we actually spent several hours with class to dig in for both eUnity and V&A. Some of the biggest things are actually pretty easy, better communication of our roadmap and training. One of the benefits of eUnity is customers tell us that it doesn't require much training. They don't ask for training, but I think there are silent customers who say, oh, but we would still love more packed training, so we're addressing that right away. that training and communication applies more so to the V&A product. One of the things we're working on is a consistent Mach 7 experience. We want to make sure if any customer calls Mach 7 and they have a support ticket, they have a question, whatever it is, they get the same kind of quality response whether they're calling about eUnity or V&A. We've got some work to do there. We've had a fair number of staff changes over the last six weeks. And we are raising everyone, raising the bar in all of our hiring and raising the standard of how we address and respond to our customers to make sure that the V&A is at the same standard as eUnity and we elevate both of them together. So we've got work to do on the V&A. We're in pretty good shape with eUnity. However, the good thing is I read every single comment that comes through. I got an email of some comments today. The majority of those were positive. Certain areas like we were rated very poorly for executives are interested in you, that has changed significantly as we reach out proactively to our customers and get our new customer success team engaged quite aggressively, but that's very much welcomed by our customers. It does take a while for our class scores to actually come up because class calls organizations spread over the course of a year. So if they spoke with somebody in, say, June of last year, they won't have spoken with them yet for this year. So there is a tail of data that takes a year to purge or update. So it's a lagging indicator. However, that said... The best thing I heard when we left class, I asked them for their concluding comments, and they said, number one, we love that you didn't come in unwilling to listen or defensive. Number two, everything you've laid out that you're doing addresses your customer comments. You're on track. So we're going to keep doing it.

All right? Excellent. Thank you, Terry. Our next question comes from Axel Salins, and there are several elements to it. So I'll I'll read them all out at once, but let me know if you need me to refresh any of the questions. First one is, can you please talk to where cost has reduced in specifics? The expectation for the OPEX growth moving forward, thoughts on R&D spent as a percentage of revenue, and overall what we should expect in the next 18 months.

All right. I'm going to hand that one over to Dan. Go, D. Lee.

Sure. Thanks, Terry. Year-to-date, most of our operating expense reductions have come from our staff reductions to date, as well as our reduced spending in administration and operations costs. As it relates to our operating expenses, We have seen a gradual reduction in our OpEx quarter over quarter, and that was through achieving efficiencies through the reset strategy. But we do feel like our OpEx currently is sustainable, and it's very disciplined. And going forward, we just want to make sure that our spending is reflecting prioritization. rather than continuing things as status quo. So we are going to continue to fund product, sales growth, and customer-facing initiatives.

I think the third part of the question was on... I'm going to postpone answering the percent of revenue R&D spend because we're evaluating that with our new CTO on board right now. and he's brought in some new ideas, but we're also incorporating AI and looking at the composition and locations of our teams in alignment with the strategy that we shared, leveraging lower-cost centers. I want to give him some flexibility to assess what we have, look at the plan, and bring in the experience that he has from previous to joining Mach 7, and then work with me and Dan on what our targets are in the next 18 months related to revenue, R&D spend as a percentage of revenue. So I ask for your patience because that's a topic of active discussion right now. The other thing I'm going to add is one of the big expenses that we shifted was closing our fairly expensive Burlington office. and opening a much more right-sized, way more cost-effective office that also is much more entrepreneurial. It's got some nice amenities. It's got a startup mindset, a builder mindset, business workshops, et cetera. So we took one significant cost out of the business, and we expect that cost to be an ongoing savings. Anything else you want to add on that, Dan, before we go to the next question?

No, I think that was – That was great. I was basically going to say the same thing in fewer words. Yeah, we're rethinking our entire approach to investment, the investment into product development.

Yep. Great. Thank you both. We have another question from Axel, and it reads, you spoke to how marketing is more specific and targeted. Could you please give some examples of how it was done, say, six months ago versus now?

I'm a little embarrassed to share what marketing was like six months ago, but I will. Our marketing strategy was we did a monthly customer webinar, and the hard part is that was focused on our customers, so it wasn't going to anyone who wasn't a new customer. We went to two trade shows and very little else. We had no SEO strategy. We had no account-based marketing strategy. We had a small number of LinkedIn articles, a couple webinars that are years old, and a website that's even hard for me to understand. We have started over. We've overhauled. We're doing branding, updated. We're targeting different types of customers. We're doing Google ads. We've got an SEO strategy. We've got an AI-aware strategy, curating when somebody asks ChatGPT who is Mach 7 and what are they good at, putting good material out there. And we're looking at our target customer, even marketing support for our partners. And so we have far more strategy there. and far more production at roughly the same cost. So it is a much more sophisticated strategy. It was quite simple before.

Yes. Thanks, Terry. Our next question comes from Ian Wilkie. Can you give some more colour on flamingo opportunities, which may currently be in the pipeline, and at what stage?

I'm going to ask Todd to share at a high level. We don't generally share a lot of details about our pipeline, so we won't share the names of any customers. But I know I've been involved in some discussions with some organizations about this. But you want to maybe share a little bit, Todd?

Sure. We do have Flamingo-specific opportunities in pipe. Those are within the next couple of quarters. where those are opportunities for us. There are some additional services that will be wrapped around those. So we do have opportunities. We are pursuing those opportunities, and we are proactively marketing and going after opportunities specific to that.

I will share that it's a mix of new customers and existing customers. We've seen interest from both sides.

Correct. Okay. Thank you both. We have another question from Axel. Can you please talk to the FX exposure? Guidance is based on an AUD to USD exchange rate of 67 cents. FX is currently 71 cents. Should this continue, what does your hedging and exposure look like?

Dan, this feels like a good question for you.

Yeah, that's a great question given the current climate situation. Currently, we do have somewhat of a natural hedge through our US dollar-based operating costs, which do partially offset our USD revenue exposure. And beyond this, currently, our contracts are forward-looking. And so, as FX climate does improve, we will also see that improvement And really just as we move forward, we are keeping a close eye on this movement because this is something that's been really top of mind over the past three or four months. And so this is something that we are keeping a close eye on just to make sure that there isn't anything that majorly that we need to switch up on our strategy as it relates to FX.

Thank you, Dan. Our next question comes from Ian Wilkie. Based on the revenue guidance downgrade of $5 million, fair to assume that was the quantum of capital sales sitting in that pipeline and just shifts to FY27. Is there any risk that these are lost?

We have had very few losses. We've had some delays. We've had some postponements. We've had a few that have had budget issues. But we've really been pretty good at holding steady on the customers that are qualified in our pipeline. I will share that the revenue downgrade is a mix of capital and services. So as we bring new customers on, whether they're capital customers or services, a recurring revenue normal ARR customer, they do bring some services with those implementations. So as we sign new projects, whether it's adding new modules to existing customers or bringing new customers in, there will be an increase of services revenue with those. In general, yes, we expect the revenue that we were wanting to have in this second half to be largely coming through in 2017.

Thanks, Terry. Our next few questions come from WaitSim. The first one is, can you elaborate on the right target customers now and the go-to-market?

All right. I'm going to have time to talk about this one a bit.

Yeah. Thanks. Yeah. I can go into a couple of things. There's three primary focus areas that we feel are top go-to-market areas. academic medical centers, large hospital groups, IDMs, and the teleradiology opportunities. When we look at, as we're moving forward, what that percentage looks like, it's a mix, and we're seeing them in different product categories, if you will, depending upon their needs. The academic medical centers are We have a pretty good stronghold of those in the North American region, and we're moving well in the IDNs. Teleradiology presents a lot of opportunity for where we are with Flamingo, and we'll see some increased sales in that area as we continue to drive forward with those guys.

Thanks, Collin. Our next question also comes from Wade. How should we think about quarterly cash flows going forward How much of the reset strategy on OPEX is driven by efficiencies in AI use in R&D, and has this changed quarter on quarter?

I can answer. I would say that the quarter-over-quarter treatments on cash flow were not necessarily based off of AI in R&D to date. They were really by really direct... actions that we took as part of this strategy to really rehaul a lot of the processes and systems as it relates to just cash collections in general. But as I'm sure Terry will add on to AI is going to definitely be part of a big part of our strategy going forward. And we fully expect that to actually even add even greater benefit to that process.

Yeah, there's a lot more opportunity for us in leveraging AI as part of a way of life, and that's part of the recruitment of our chief technology officer to help drive. So I would, you know, a lot of our OpEx improvement is more structural changes versus, yeah, a heavy improvement in R&D. We did not cut development staff. That is, in general, we've had a few changes here and there, but it's not been a big source of our reduced operating expenses.

Thanks, Terry. We have another question from Waisim. What is the status of the VA engagement?

I would say it's pretty much done. I shared in an update a few months ago that when GE acquired Intellirad, which was the incumbent vendor for the VA, they made an announcement that they were going to discontinue their project of changing to new technology, and they informed us as well as the other vendors in the next-gen PACs that they were halting the project. So it remains halted. We've heard no new news of them intending to start anything else up. And as far as we know, they're continuing on with IntelliRad.

Okay. Thank you, Terry. Next question comes from Ian Wilkie. Todd, you said Flamingo-specific deals in the pipeline. Are these coming through as a standalone product or alongside viewer V&A RFPs?

Both. We have a couple of standalones. When it comes to the orchestration aspect of it, we have a similar customer that we announced was IQ2 that was using basically our Flamingo component, and we've got a couple that are also looking at expansion through both eUnity and the VNA.

Great. Our next question is from Wei Xing. Could you provide an update on what Ravi is up to since coming back.

Ravi divides his time as a strategic advisor for me in supporting sales out of Asia and the Middle East and inspiring and helping our team there. successfully execute helping with partnerships and also customer relationships based out of Singapore, Malaysia, and the Middle East. That's about half of his effort. And then he's also been engaged with our development team on Flamingo modules, on some of the vision. He was one of the architects of some of the elements that will turn into Flamingo modules going forward. I'm looking forward to getting him engaged with our CTO. He was part of the interview process. in helping select a strong CTO going forward. And his response to me after the interview was, we need him yesterday, how fast can we hire him? So he loves the product vision stuff, loves to talk with me about where the industry is going and has deep knowledge about it. So I use him as a person to help inspire and validate and connect us with key movers and shakers in Asia and the Middle East.

Okay. Another question from Waisim is he's asking the eUnity versus the viewer go-to-market unification. And over the three broad categories mentioned, you might recall Wais' first question was on go-to-market strategy and target customers. Sorry, he meant V&A. He's come back. I meant V&A. So the eUnity versus the V&A go-to-market. Thanks, Wais. Okay.

Okay.

So, I'm going to restate for a second to make sure I understand. So, E-Unity versus BNA, go to market. I'm not sure about unification because we can do the E-Unity, we can do BNA, we can do Flamingo, we can do all three. But I'm not positive about the three broad categories.

Do you... I think the broad categories might have been... Is it the... More of the AMCs, the IDNs, and the tele-radiology place?

Our target customers? Yes. Yeah, looking at how that relates to the different products.

Okay. Yeah, that's okay. Yeah, IDN, yeah, okay. All right, so I can see. I just saw that pop up. So from a standpoint of the go-to-market strategy around those, there are a lot of similarities, especially with those that are in the cloud because it's, it is very unique to the solution. But from a standpoint of having specific separate go-to markets for those two products, and as Terry mentioned, we really have – if you really look at it, there's four real kind of offerings, right? When you have eUnity, you have the V&A, you have the V&A and eUnity together, which is the enterprise imaging platform, and then when you add in the Flamingo suite of products, We have the ability to really talk about four. Those GTMs are going to be universally similar on the base, but they will have specific hooks, if you will, for each one of those categories because each one of those categories is operating in a different environment, and we may be selling to a different person in each one of those, right? So academically, the beauty of an academic environment is they learn on ours in the academic environment, and when they leave, They take with them the love of Mach 7, whether that be eUnity as a RAD or a RAD Tech as they're learning or on the backside as the IT staff supporting. We will do multiple things in our go-to markets, to be quite honest. There's a lot of things that we want to be able to do with the Flamingo piece because it does add some variety and it does do some specific focus things, and we'll reflect more on that here in the near future. But, yeah, rest assured we're able to go across all those products and loop in the Flamingo suite for all of our go-to markets.

Thanks, Todd. Our next question comes from Andrew Rubiero. Who are your top three competitors in the V&A and viewer space at the moment?

I'll throw a couple out, and you can tell me if you agree, Todd. Yes. You know, it's interesting. IntelliRad has been a big competitor of ours for years. And it's funny because, you know, we were very often compared because we are top-ranked for value, and they also tended to be a less expensive option. They haven't changed their product much in the last 20 years, and they've now been acquired by GE. Okay. And so it's interesting because at one level it's been a main competitor, but it's also a big opportunity area for us because a number of organizations that have IntelliRad are now going to market to decide do they want to keep IntelliRad when they know that it's another product on the GE set of shelves, or do they want to switch to a vendor where they're comfortable that they're going to have a long-term focus, and that's a great opportunity for us. We would also, I'd say, come up against Fujifilm, the TerraMedica product. It is interesting. You know, the other one, Meredith, there's a set of vendors who've acquired lots of different products. Some of these are big iron vendors that also have machines that they're selling. And we have an advantage that we are very, very focused on imaging data. And we can even compete with the PACS vendors. But we're focused on this, and we're not focused on other things. So we're not making hardware, and we don't have a lot of other companies and products that we've been buying and selling over the years. And so that's kind of why I see the V&A space. I'll give Todd a second to comment if you have any other thoughts on it.

Yeah, no, I think it's the same players that we see, right, Agfa, Sectra, Fuji, and Telerad. Those are all dependent upon where they are, where they are on the GOIs in the states, what the price point is. And again, kind of it goes back to some of these guys are focusing on IDN, some focus on Telerad, some focus on imaging centers. It's just a sweet spot for them or it's a spot where they have connections in a network. But we are, as Terry said, because we are 100% focused on the imaging data. And with the vision of where we're going with that, it makes it a very compelling conversation for us because we are competitive and we are price competitive as well as knowledge competitive and platform competitive. So, yeah, those are who they are.

We can bundle up our products and compete in a pack selection process. So that's a number of our activities in the pipeline. But We're also, you know, going after there are some vendors who are a bit old and dusty and haven't provided a good customer service and have been bought and sold over time. So we're taking our flight crew model and our improved customer support model and going after some that, you know, there are a lot of vendors out there that don't do a great job. So we're comfortable that we can well out-execute them.

Thank you both. We have one last question on the chat, and it comes from Matt Gardner. What has been the most important change you have made to the company culture since joining?

I love talking about culture. I love focusing on culture. I had a staff meeting today. You know, we've had several subcultures within the company. We acquired eUnity and Client Outlook, and they kind of had their culture, and the team in Burlington, and it's a matter of people spread around and tighten it. but was disconnected group in Malaysia. So I think one of the most important things is defining quite deliberately our client's culture code, being customer first, learning, iterating, experimenting. innovating for impact, making sure that we're not just doing stuff but that we know it's going to provide positive outcomes, moving and moving with efficiency, no bureaucracy. We can out-execute and we can do it faster than a lot of our competitors, building good quality software and selling, telling everyone, look, we all sell. All of us sell all the time. It is part of our job and we support sales. That culture code spells clients. Driving that in is the thing that unifies customers. the entire company, and making sure that they're very much connected to the vision and the impact down to the patient level of what we're doing. That isn't something that happens by accident. I, as a leader, have to be absolutely relentless. I find every excuse to talk about our culture that I can, and I school all of our leaders to make sure that we're making it very specific, examples all the time, calling each other up positively or negatively. Are you living the culture code or are you not living the culture code? This makes sure that we as a company are actually moving in the same direction, and it takes away the squabbles. It is, by the way, prioritized. So C is first, customer first. Learning is second, experiment, rapidly iterate, fail fast, move. It goes in order. And sales is last because I expect when we do all the rest, actually sales is the natural byproduct. So that's how I'm driving this culture, and we're doing it with a little bit of fun.

Perry, we have no more questions at this time, so I'll hand back to you for closing remarks.

All right. Well, we've been busy, and not the kind of busy that just fills up calendars. I don't ever confuse activity with outcomes. The work we've been doing is rebuilding this company from the inside. And six months ago, we started this reset. It was not cosmetic. It was quite thorough, and it was structural. And today we are moving to controlled and repeatable execution and pixels to point of care. It's a simple idea, but it's really important. Then it's a unifying idea. Every image, every workflow, helping a clinician make a better decision that impacts patients, doing it faster, doing it with more confidence. We anchor our company around that, especially around patients and outcomes. And that makes everything shift. The products are getting better. The teens are getting sharper, and the energy has completely changed. We are building something that has impact and a company that lasts. We know we have a lot of work ahead of us. We are not pretending it's done, but the foundation is real, and it is strong, and we have a strong and clear direction, and we are building momentum. Now, I care deeply about this. It's personal. As a nurse, I've seen what happens when systems don't work the way that they should. So this is more than just software. It's care. So we will create long-term value for our customers, but also we're focused on creating long-term value for you, our investors. So thank you for supporting us. And with that, I'll wrap it up.