We have quite a deal to get through this morning, and so we've reached our scheduled start time. Let's kick off.

My name is Craig Sharp. I'm the Company Secretary here at Kinatico Limited.

I'm just running through a few formalities before we get the proceedings proper underway. This session will be recorded.

The results will be posted on the kinatico.com website following the event shortly. Just be aware that it's being recorded.

If you're not comfortable with that, now's the time to leave. There will be questions.

If you have any questions, please use the Q&A function in Zoom. You are all muted as attendees because we have an awful lot of you in this webinar today.

When time permits, we will get to questions at the end. Before we start formally, Kinatico would like to take this time to acknowledge the traditional owners of all the lands on which we meet.

Personally, I come to you from the beautiful lands of the Whadjuk Noongar people. I pay my respects to their elders, both past and present.

Go to next slide, please, Tom. This is a formality, but it's an important slide.

This morning, we are talking about the company. We are not providing you with investment advice.

Next slide, please, Tom. I will now hand over to our CEO, Michael Ivanchenko.

Thanks, Craig, and good morning, everybody. Today, we'll be going through quite a bit of ground and not only putting some color and information around our H1 performance, but we will be providing an update on how Kinatico Compliance, KC, is performing in market to date, its further go-to-market strategy, and how we will be looking to further accelerate its performance to drive top-level growth, but also, most significantly, going through our AI strategy, deployment, and our maturity, in fact, for the first time.

We've been using AI embedded within Kinatico now for over 12 months. It has been a fundamental shift and a strategic decision that we have taken.

We have not spoken about it before because we actually saw it as a bit of a competitive advantage that we wanted to keep to ourselves. In light of market conditions and expectations, it's clearly time to share some of that with you, and we are very excited to do so.

Then looking what we can expect and how we're going to look to continue to perform in coming periods and coming years. Next slide to plus two, please, Tom.

Next one. Yep.

Just a reminder on the strategy of where we're at. Moving away from pre-employment screening exclusively in a commoditized market and then proving the point, which we've done, the market need for lifecycle compliance solutions that focus on the users of those platforms rather than specifically the requirements, but being limited in our growth potential by the fact that with a 5 to 6-month deployment integration schedule, we were limiting ourselves to only the largest businesses for that particular product set.

The demand is there for everyone. Every business, right from the smallest up to the largest, has exactly the same compliance obligations.

While all relative to size, it is still a distraction and potentially a major liability for everyone. Our solution has been to build a new platform, KC, to actually solve that problem, make it easy to deploy, relevant to all business sizes, still very simple to use, and in fact, growing simpler and simpler all the time, secures customer data, delivers certainty, and leverages AI.

As I say, we'll be going through exactly how we've done that. Our differentiator as an organization is combining sector knowledge, the data models, and AI, but still with a focus on the people performing compliance tasks and activities, that delivers certainty, time-saving, and distraction avoidance.

This isn't a horizontal efficiency workplace tool. This is a solution that actually provides ongoing value and service.

It is not something that simply is replicated when you consider the magnitude of the data inputs, the proprietary data inputs, and access to sources, but also the fact that compliance requirements are complex. They change all the time.

They vary according to the person and the role and the location. It is a highly, highly complex niche position.

We believe we are very well positioned to take advantage of that opportunity. Next slide, please.

Executing our strategy, what have we done so far and where are we going? We've continued our 50% SaaS growth using our legacy products, let alone before we get into the advantages of KC.

We've also at the same time continued to be extremely focused on cost management, back-office efficiencies, ensuring our scale right across the business so that more and more of the top-line revenue falls to the bottom line. We've got real customer traction with our solutions.

Now, as we'll hear shortly, that has been validated via KC. It is resonating across the board.

Then, as we'll talk about, our AI advantage, and not something that we are doing now, but that is already embedded, and we have 12 months of maturity behind it, which in AI time frames, quite frankly, is an aeon. Next slide, please.

The milestones achieved: We've proven the SaaS model. We've launched the next-gen platform.

We're now looking to deploy that on scale and really start driving into those untapped markets, convert the pipeline that has now been built up, and ensure that we do take on category leadership, our objective an 80% SaaS mix. Next slide, please.

We always like to share at each one of our half-year updates our customer wins. As you can see here, the list in the last half-year is extensive, with some very, very significant names.

There has been no slowdown in demand. There has been no pause of companies going, "Oh, it's okay, we can now build a compliance platform ourselves."

As mentioned, these are complicated solutions. These are things that require tremendous experience, knowledge, but also access to the data and insights and engines to be able to deliver these services.

You can see, yet again, we are getting that support. Next slide, please.

With that, I'd like to pass off to Jason, our CFO.

Good morning, Michael, and good morning, everybody. Before I take you through these numbers, allow me to frame what we are about to share.

We are presenting these results at a time when software stocks globally are under real pressure. The market is asking a number of hard questions of SaaS companies: Can they sustain their growth?

Will AI disrupt or enhance their models? Is reported growth a mere price increase on captive customers?

Next slide, please, Tom. We believe our our numbers answer those questions directly.

We grew our SaaS revenue by 50%. We more than doubled our net profit on prior corresponding period.

We generated a positive free cash flow, and we expanded our existing customer base by more than 26%. Next slide, please, Tom.

Revenue growth demonstrates our momentum of one of building and not slowing. It's grown to 49.5%, or $9.7 million, which on an annualized basis equates to 19.7 million.

Allowing me to pause for a brief second and reflect, back in 2022, this was a mere $3.9 million. SaaS revenue now forms the majority of our consolidated revenue base at 55%, and CAGR yet again above the 50% mark.

Next slide, please, Tom. Continuing our half-year financial story, EBITDA is up 30%, but significantly, NPAT has grown to 107% to almost a million dollars.

This highlights a positive gap created by effective operational leverage. Earnings per share up 102%, return on equity nearly double.

This is achieved whilst continuing to invest in our Kinatico Compliance and AI capabilities. Putting a wrap on this slide, this is margin expansion, not from spending less, but rather by growth and better revenue mix.

Next slide, please, Tom. Taking a look at our key highlights from the cash flow statement of cash flows, we closed the year half-year with $10.4 million in cash and cash equivalents, free cash flow positive for the second consecutive half, and zero debt.

Operating cash flow is broadly in line with prior period, while cash used in investing activities has reduced, reflecting the lower level of capitalized development costs in the half. Whilst some of the foundational heavy lifting is behind us, we will continue to invest in product iterative product enhancement as driven by market and our customers' demands.

Those are the numbers behind the strategy, and here is what gives us confidence what comes next. The AI we have deployed across the business isn't just a product feature.

It is an operational engine. It is already lifting our margins, and it gives us absolute clear line of sight to further leverage as we scale.

In short, on an operational level, the structural advantage we have built ensures the next phase of revenue growth does not require the next phase of hiring. Geoff will now show you the product that will turn this leverage into a revenue growth.

Geoff, I hand over to you.

Thank you, Jason. Good morning, everybody.

Good to be with you again. Today, myself and Chantal are excited to share with you our progress on Kinatico Compliance, or as we call it, KC for short.

Obviously, this is a strategic move for our business. With KC being the evolution for us to serve a broader market, we're going to walk you through what we've achieved and also what it means for our potential growth.

Next slide, please. KC fundamentally changes who we can sell to.

Michael sort of touched on this up front. Where we've been strong is we have built our success with large enterprise businesses in that 500-plus worker model.

These customers have obviously needed those complex compliance solutions and have very much valued our high-touch approach that we've offered in market. This does limit us to a market size of about 2,000 customers in AU.

The opportunity we have unlocked here with KC, and where we couldn't compete in the past, is KC now opens up the SMB market for us in that 5 to 500 worker range. Where these businesses can have simpler compliance needs, they are also looking for short, sharp implementations.

The good thing with KC is it can enable this even with enterprise, with faster and shorter implementations. With KC, what's really important to understand here, it isn't replacing what we do.

It's only expanding it for us and doing it faster. As you can see here, that actually transforms our growth potential moving forward.

Going to 300,000-plus potential customers in AU versus 2,000 in the past is about 150 times in the way of opportunity for us moving forward. Next slide, please.

Overall, simplifying software adoption in the market, it is really key for the marketplace. With all businesses and customers we talk to today, this can be Achilles' heel for any type of organization.

The old way through traditional deployment took months that required lots of hours. As you can see there: scoping with the customer, configuration, testing, all the way through to rolling out change management programs, and even helping organizations with behavioral change management programs.

That's been a barrier for us for the SMB market. The KC difference for SMB is it offers self-serve, it has guided setup, it has live chat, and it's done in hours.

Even for large customers, it's still streamlining to days and weeks versus months. Additionally, with enterprise, based on the technologies built here, it will dramatically reduce that time for the customer, faster for us, but it removes that barrier to market entry that we've had in the past.

Next slide, please. Here's some early outcomes since the launch we had in October.

One of the real compelling parts for us is around the SMB market, and we do see this as a new frontier. We've had 35 businesses already sign up with us, which has been really positive for us for a number of reasons.

The first reason is we are still targeting those diverse industries. We've seen a demand from clients, whether it's in the aged care space, the healthcare space, financial, professional services, IT, whatever it may be, that demand is there at this level.

We know that's the area we wish to unlock. We think we're at the tip of the iceberg in this space, and it's validated it through the market access that we've seen.

The unexpected bonus is our pipeline. Let me just give you some background on our pipeline.

Our pipeline in the past has ranged anywhere between sort of $5, $6, $7 million throughout the year. Since we've launched in October, we have significantly grown that, and our pipeline is now sitting at circa 10 million.

Our expectation based on sales cycles is to see these outcomes come about in H2. Once again, we are seeing validation here across all markets, and what we're proud of, as I've talked about before, is being agnostic.

The great news for us here is where we've been seen as a niche enterprise player in the past, we're now being seen as a scalable platform business. Now I'd like to pass over to Chantal.

Thanks so much, Geoff, and I'm really, really excited to take you all through the go-to-market strategy of how we're going to bring this to life to grow that serviceable market. Next slide, please, Tom.

In looking at our serviceable addressable market, you can see that effectively what we've done is grow this. This is the portion of the total addressable market that we believe we can realistically capture with KC.

Our SAM has been expanded, as Geoff alluded to, to the 300,000 businesses, which equates to $1.2 billion roughly annual spend on RegTech software in Australia. Now, more importantly, this isn't just theory.

This isn't just big numbers on a slide. These numbers have been validated through credible sources like ABS market employment data, Gartner market sizing, PWS surveys, but more importantly, our own research and own data from our own customer base.

We feel really confident that these numbers are attainable. They also correlate to our monthly price point that we have in market of assumptions that we've made on the various business sizes and what they will spend on RegTech.

In doing all of this, effectively, what we've done is we've made Kinatico enabled to compete with a bigger slice of that 10 million worker pie you can see on my right, rather than just a sliver of the enterprise 4 million slice, which is that little purple one at the top. I think all of us will give comfort that this is absolutely attainable.

The reason why we say it's attainable is that critically, these small and medium businesses, they don't have the knowledge, the teams, the time, the know-how, or the ecosystem and the security to be able to do these kind of compliance solutions themselves. They need to come to someone like us for a solution.

This makes the SAM genuinely addressable rather than just these big numbers, as I say. Also, we're not competing against internal departments with our solution here.

This is a viable, affordable solution for these 300,000 businesses who really need that daily workforce compliance management. Next slide, please, Tom.

Since we launched KC below the line last year, 35 businesses of various sizes have signed up through our digital self-serve channel, as Geoff said. This is further validated the fact that these small and medium businesses, they will find us, they'll buy from us, and they'll onboard themselves in those days, not months.

The migration program has commenced to convert our relevant CVCheck customers who see the value in a complete compliance solution for KC. Our $10 million pipeline, as Geoff outlined, has proved that our previously core target market is stronger than ever.

Really, what this is showing is that our product is market fit. Also, if you look at the bottom there, we've got our freemium product, which is available to the 700,000 micro Australian businesses.

That's below 5 workers, 2 to 5 workers. They certainly don't have the time or the money to implement these kind of solutions.

Yet, some of them had exactly the same compliance needs and barriers and requirements as the larger businesses. We are offering them the freemium product.

Now, some of this is done because we feel it's a good thing to do for Australia as small businesses grow, and there's a lot of them, but also equally for us, it's a fantastic pipeline at that smaller end as they grow and their needs grow. We feel we're well-placed right from that really teeny-weeny micro up to the large and up to the enterprises, as Geoff alluded to.

Next slide, please, Tom. When we were working on the go-to-market for the marketing plan for KC, rather than needing a new budget line and begging Jason for some money, we got smarter with the money we had.

Our newly appointed media agency, they've improved the ROAS on our CVCheck traditional spend, which allowed us to free up some dollars which we've used for the KC launch above the line. In our below-the-line digital launch last year, we monitored what was working in terms of channels, in terms of messages.

For H2, what we've done is we've adapted that and we've doubled down what has worked and what we're taking into market. Next slide, please, Tom.

This includes putting KC where Australia's business decisions are, where they are captive audience, which, for example, one of the most world's top 10 busiest airline routes is Sydney to Melbourne, and we will have prime advertising in the Sydney terminals, including the halo in Terminal 3. If you see it, send us a photo.

We'd love to see you in action with our KC. Or we've also could catch us through working through the CBD, whether you're in Sydney or Melbourne, two biggest cities in Australia.

What this all does is gives us brand awareness at scale, growing awareness not only of Kinatico Compliance, but Kinatico as a whole. This is not just us relying on performance marketing as we have in the past.

Next slide, please, Tom. What we've also done is we've enhanced our messaging with smart creative, which is with smart media buying.

As you would have seen in the previous slide, we adapted the headlines in the airport. We've adapted the headlines on busy traffic routes like Military Road in Sydney.

In addition, we had some press on the weekend. I'm not sure if any of you saw it, but for Valentine's Day, we talked about how KC is your perfect compliance match.

We've got Forbes's billionaires issue is coming out, and we've got a headline which talks about compliance performs on command. Then we have got a Channel 9 network buy, which highlights our audience is exactly who KC is through our enduring KC video.

Systems are like untrained puppies: chaotic and unpredictable. Meet Kinatico, your trusty compliance companion.

It'll take care of training, daily compliance, and onboarding for you, making compliance swift, seamless, and simple. It's compliance that's trained for business and performs on command, all in one real-time synchronized view.

It's always on duty and ready when you are. Kinatico Compliance, your compliance companion.

In harmony terms, I say that I love it. Hope you all do, too.

Lastly, we've amplified all our messages through our owned channels because there's nothing more powerful than owned and earned media, as we all know. This includes even just our little email signatures, as you see them below, and these are at zero cost.

Effectively, we're making every single dollar work harder than ever. I'd love to see if you get some feedback on the campaign, send it through to us.

We'd love to know what you think. With that, I'll hand back to Michael to talk all things AI.

Thanks, Chantal. Yes, we are very excited about the marketing campaign.

I think I've mentioned previously in some of the presentations, we're a highly data-led business. The data and results we've seen in the first 3 months of actually doing various things in market to see what was resonating has really given us the confidence to actually take things to the next level, as you've seen there, and to stress something that Chantal has mentioned, that is all within our existing marketing budget.

There was one of the questions there to address on straightaway as we flow through this was, "Are we expecting a major uplift in our marketing spend?" No.

The way again as an example of the cost apportionment and efficiencies across the business in partnership with our agency that we've got has actually got us to actually manage that spend, including the major launch of KC within the budget. On to AI, the topic du jour as is being speculated.

I'm actually really looking forward to presenting this section or in fact having Odelia present it. We made a deliberate strategic decision midway through last year to expand Odelia's role from Chief People Officer to Chief People and AI Officer because successful AI transformation is 80% people and 20% technology.

Most companies get this backwards. For those who've been in the industry for some time, we can all remember back the various things that were going to change the world.

Not to underestimate, because I think AI generally does and will change the world, but equally, when PCs first came into businesses was another one, when the internet first came around was another one. We've had various things, and the speed of their deployment, the successful deployment, the software companies that really excelled in that space all had one thing in common, and that is that they understood that the people in the end have to be the buyers and the users of these technologies.

We're not moving into an entirely replaced market where AI is exclusively speaking to AI. The fact that we are still selling to various departments and people, the fact that people have to get the benefits of this new wonder tech means it requires a people focus.

With 70% of AI initiatives failing when led by IT alone, having our people leader own both human and artificial workforce capability gives us a unique competitive advantage. She's already delivered measurable results with active education that has increased our people's confidence in identifying security, privacy, and accuracy risks when using AI, up 24% in just the last 4 months, to 76%.

She's also implemented and led our responsible AI adoption framework, which she'll be talking about, but again, I think is highly key. This isn't about adding responsibilities.

It's about recognizing that in the AI era, the executive who understands organizational capability, change management, and workforce development is one of the best positioned to make our AI investments pay off. With that, I am very excited to hand you over to Odelia.

Thank you, Michael, for the introduction, and good morning, everyone. When our exec team was discussing the role of the AI Officer, I recounted to the team that many years ago, when I started out in Human Resources, someone said to me, "One day, Odelia, you will have robots on your org chart."

I'm really pleased to be here and talking to you about the people and AI partnership today. Next slide, please.

Our approach to becoming AI first has been deliberate. AI first, but not always.

We started by designing our responsible AI strategy framework, defining our AI vision, considering ethics and governance, identifying opportunities, and setting our road map and goals. This is how AI has become our mission multiplier and not just a distraction.

As with any transformation, it has to be people-led to be successful. We also know from much of the research available that the top barrier to AI implementation is lack of skilled workforce.

This means our talent is key. 88% of our people are confident in using AI in their day-to-day work.

In addition to this, AI maturity is being flagged as how responsible an organization is in its approach. Organizations deemed to have an effective responsible AI approach also double their profit impact.

Ensuring that we have a responsible approach to AI where it enables us to amplify our existing expertise, we'll see our success in creating lasting customer value. You can see our responsible AI principles here, and these are already embedded across our organization.

We have aligned our approach to the international management standard, ISO 42001, and definitely have formal certification in our sights. Our existing ISO 27001 certification means that we have the management system DNA that ISO 42001 requires.

We already operate with the governance rigor that responsible AI management requires. What we are doing now is extending that proven discipline to our AI system specifically.

The management system is built. The culture is established.

We're adding AI to a framework that already works: same governance rigor, same operational discipline, and same audit-ready culture. Our talent plus our responsible AI approach is a competitive advantage.

Next slide, please, Tom. Yes, we are disrupting our business and operating models with AI, but with a very clear vision, which is: We transform compliance from constraint to competitive advantage, people-led AI, amplifying expertise, and creating lasting customer value.

You can see from the timeline that we have been doing this actively for more than 12 months. We've heard a lot of noise about Anthropic's effects in the market recently.

We selected Anthropic's Claude LLM to deploy across every function in our business back in early 2025, and we currently have 88% of our people confidently using AI in their day-to-day work and are enjoying the benefits of this. In addition to this, within our products, we have developed proprietary AI models.

While Kinatico Compliance is AI native, we have been able to leverage these learnings to simultaneously improve our customer experience on our existing assets, such as Kinatico CVCheck. AI is fully embedded in our end-to-end product development process, which has increased our development velocity of features by more than 50%.

Our customer-facing AI support models have been released in Kinatico Compliance as KC the Kelpie, your compliance companion. Our responsible AI framework is in place.

With active education around this, our people's confidence in identifying security, privacy, and accuracy risks when using AI has increased by 24% in just the last 4 months, to 76%. We have confidence in our application to become ISO 42001 accredited.

For our people, compliance, privacy, and governance are like muscle memory. We know how to do this, and we have proven it for nearly two decades.

Next slide, please. Here is our economic moat.

Our expertise, our experience plus AI is our market advantage. I'm going to start at the core, which is listed as layer 3 here: our domain expertise and our system record of advantage.

What does this mean? Not only do we have 17 years of very nuanced, deep compliance expertise, we also have access to proprietary data sources.

Secure access to these data sources has been enabled through networks of relationships that we have built over years and delivered through technology that we have developed and own. This is not information readily available for AI agents external to us to harvest.

This is not information that can be accurately found on the internet. The complexity of ever-changing compliance makes workflow automation challenging.

Combined with the myriad of nuances that each worker brings with them increases this challenge exponentially. Imagine you have a worker who travels to different work locations in a day, where there are different safety requirements at each location, and in addition to this, they maybe have a disability that requires an additional level of compliance that they need to adhere to.

We understand the challenge for employers to maintain controls across the intersectionality of all of these things. When people's lives and livelihoods hang in the balance and their employer's liability is high if they get it wrong, AI can recommend, but people still need to decide because a person will always be accountable for the outcomes, and 27,000 customers trust us to help them with this already, and we own the data layer.

Layer 2: This is where we have both native and embedded AI. You've heard that Kinatico Compliance is foundationally enabled with AI, making it AI native, combined with the fact that we own the data layer.

This is not easy to replicate, nor do we believe that others will even want to try. Customers are looking for AI solutions that help them, and with our responsible AI framework and alignment to ISO 42001, we are able to meet their requirements with confidence and utilize our licensed and proprietary AI models.

Organizations that are investing in AI will be able to benefit from our AI tool set, knowing that it is maintained and secure. There is benefit to our customers on Kinatico CVCheck as well.

An example of this is in coming slides. Our customers need 100% accuracy, and hallucinations are not acceptable.

Lastly, layer 1: Our deployment model, which you've heard Geoff talk to, in addition to our outcome-based positioning. Self-serve setup and configuration with AI-guided support in the form of KC the Kelpie, your compliance companion.

We have unlimited admin seats, which increases the usability across different functions within an organization. In our organization, for example, we have admins in the people and culture team, information security, and operations.

Kinatico Compliance has broadened the usability across an organization's functions: no more silos, and now accessible to all business sizes. The value is the data that the workers provide.

Next slide, please. Kinatico Compliance has been built with an agent-enabled architecture.

We've already made the investment in the design. This is coupled with our pricing, which is outcome-based.

There is no charge for admin users. An organization may have unlimited admin users, and in time, these may be agentic.

The more admin users, the better, as what we are charging for is the data generated by the workers responding to the activities generated by these admins. In addition to this, we are benefiting from AI use in both our product management and ongoing operations.

It is genuinely embedded in improving our operating model and in our products to the benefit of our customers, and doing this within our responsible AI framework means that we are doing this sustainably. Next slide, please.

Just a few examples of where we are heading: Currently, most software users will be very familiar with dynamic dashboards and filtering, which we do have in our insights pages. Coming up shortly, users will use natural language queries to retrieve the specific information they are looking for through prompts.

As you can see here on the left, the example is, "Give me a Q2 report for the board on compliance for our South Australian division." This not only surfaces the information with context of the audience in mind, it provides it also in the format requested.

Another example where we will also progress to is where AI becomes the UI, paired with intelligent requirements. Adding adept to our self-serve approach, the example on the right demonstrates a prompt that provides context such as new starter, their name, email address, type of worker, and location.

It then directs Kinatico Compliance to commence the onboarding process. Adding intelligent requirements to this in future will allow organizations to receive proactive recommendations around compliance activities specific to the intersectionality of its workforce.

This will allow even SMBs to achieve rigorous compliance standards simply. I like to think of it as the Netflix for compliance.

Next slide, please. For our existing assets, such as Kinatico CVCheck, we will continue to leverage our learnings from our AI-native Kinatico Compliance.

An example of an MVP we have in testing is our support agent. This agent is designed to quickly surface the information that is sitting within our systems to provide updates to customers, predominantly around their compliance status against screening activities, and provide them with answers quickly.

The initial results we are seeing are promising. However, in line with our AI guidelines, this is not something that we take lightly.

Our customers are not ordering hamburgers. We are trusted to deal with their personal information, and the privacy of data remains our highest priority.

Our expected results of when we do release this in production reduces the response time and cost of providing customer support while also increasing customer satisfaction. As you can see, AI has become embedded in our ways of working, and our Kinaticons are positively engaged around our AI culture and adoption.

I will hand back to Michael Ivanchenko, who will provide us with a quick recap of our session. Thank you.

Thanks, Odelia. Hopefully, it's clear from the presentation and the information there.

This is not something we've gone, "Okay, what's our AI story?" The examples, the results, the approach, the maturity, it's a position, and the exec team are very, very aligned on that across the board.

It was a very, very conscious decision that we took early last year to take the step to see how we could leverage AI throughout the organization. That has grown.

It has matured. It has evolved.

Where we first thought it was going to go in the early last year, I've got to say it's totally different to how it's matured. One of the key areas that has been is because it has become a standard operating tool across the organization in amplifying everybody's performance.

Certainly across the exec team, a noticeable difference in not only the magnitude, but the quality of the investigations, the discussion, the data that is raised. Further evidence to the point that if anybody's of any doubt of how AI will transform the business place, you wake up and smell the coffee.

All right. Next slide, please.

To summarize all the things, and perhaps when I made the comment at the beginning of this webinar why we're feeling very optimistic and actually quite excited and energized about where we're at and where we're going, is that the investment we've made in KC, the fact that that investment is already done, it's not something we now need to respond to. We're ahead of the curve here.

This is not something that another company can go, "Oh, we should do that, too," and quickly turn around and do it. AI is foundational in the DNA of KC.

It's not an add-on. It's not something that we then plug on the side and all of a sudden leverage.

To enable agent access by admins back into KC is not something you can add on. Certainly to gain full advantage of.

The fact that we've got an AI-native architecture, the fact that we've already incurred the build investment, and we're already seeing the results, to generate a greater than $10 million pipeline for enterprise within 3 months is significant. They're material data points.

With 35 sign-ups across our SMBs, one of the questions we've got here, "What are we seeing across the spectrum?" Look, it's too early to tell the transition points from freemium to the other tiers, but it is already occurring because that ties to one of the other questions I've got on the live chat about cannibalization of Kinatico CVCheck.

We don't see it as cannibalization. It's part of the core strategy.

If somebody wants to come in and do a bit of pre-employment screening or credential verification, great. They go into the pipeline to move up to the SaaS model.

I've said before in other presentations, and to reiterate, we expect the Kinatico CVCheck product to stabilize and remain constant probably at around the $15, $16 mil per annum. Not that that is where it's at, it's because it's just as fast as people come into that funnel will be just as fast as they move up the ladder chain and build that relationship.

We certainly don't see it as a cannibalization. In fact, if anything, it becomes a very effective sales acquisition strategy.

The 12 months of deployed maturity in AI cannot be underestimated. The learnings we've had, the approach we've taken, the fact that we come from a position in the company around having ISO accreditation, understanding our responsibility around data security and transmission and protection, etc., are major moats in terms of our AI deployment.

The fact that we're already underway with our 42001 certification is significant. We've then also rolled it out across our other legacy products to improve the benefits.

One of the other questions we've got there is, "Do we see AI being primarily at the customer advantage or for cost saving and efficiency?" The short answer to that is both.

We actually see different benefits, but very strong benefits across the board, and that is why we've embedded it. Then also combining that with all of our proprietary information that we have.

As I mentioned at the beginning, this is not a tool that is simply yet another workforce tool like a communication layer or a data organization reporting layer. They are minor functions on top of the overall complexity of a compliance environment.

What are we expecting to do in H2? We want to increase the number of SMB employments.

We want to get further critical mass, just go, go, go. We want to convert the large businesses in the pipeline.

I've got a question here of, "What percentage do we expect to convert of that $10 million pipeline?" Now, I'm not going to suggest a target number around that one, not surprisingly, not the least of which Craig would beat the crap out of me later.

Traditionally, we've had about an 80% conversion rate of our pipeline. Now, the issue around enterprise pipelines is there is less certainty about the length of time that takes.

We are at the mercy of procurement departments and all the rest of it. Are we confident?

Yes. Now, what does that mean in terms of re-acceleration and what people should expect in terms of revenue top-line growth?

I keep coming back to the fact because the expectation of movement, we're 3 months into this launch, right? Whether we start to see that effective the top-line numbers in Q3 or Q4, I think it's going to be far more obvious in Q4, hopefully, then will be in Q3.

Certainly, what we're targeting is to demonstrate the effect in annualized SaaS from seat revenue at Q4. We said at the beginning of the launch at the AGM that we will share detailed information, etc., around that after Q4 because we feel there's enough statistical data there to make that data relevant.

As you can see across the board, we've built a next-gen platform. We've launched it.

It's getting traction. We've done it while increasing cash flow and NPAT.

We've also done it while optimizing our existing structure and cost bases, etc. We now have an organization where 88% of the staff use AI every day, and that is only going to grow.

It's also significant, you see from today's webinar, pretty much the entire exec team is on this call. One of the reasons we wanted to do that is to demonstrate the depth of talent and commitment across the exec team to make this successful.

With that, on to questions. All right.

If we go through them, let's see which one. Another one is talk being able to scale KC, "Is the product ready now to scale at enterprise level or is more investment required?"

It is ready to go. We're getting the traction in the pipeline on the back of the demonstrations and the proposals that have gone into those enterprises.

That being said, I think it's a really important one. We are a tech company and a software company.

If we stand still, we're going backwards. We will continue to invest in our product, but the heavy lifting on the engine, etc., is very much done and very much in a position to take on as many users as our enterprise see fit to throw at us.

Very much looking forward to that. What else do we have?

One of the questions there about the number of customer wins, "What are the expectations of contracting on the legacy versus KC?" Because a lot of, particularly those larger labels, were in the sales process for a very long time, particularly the larger ones are legacy platform products.

What is included in their arrangements and the discussions that is ongoing is their ability to migrate. One of the things that we haven't included in that pipeline or even in the presentation is the overall strong desire or interest from our existing SaaS base to move into KC because they can see the benefits.

One of our approaches, while not targeting them to move, we want them to come to us, not us to tell them what they have to do, because we found that never goes well with customers. The interest from our existing customer base to move over and get advantage on that is very strong.

All right. I've got the usual question of, "Are we doing any M&A and are we going to buy anything?"

We continue to look. While we're very open to that for the advantage of either product expansion or market reach, we will continue to investigate that.

At this stage, still nothing has passed what we consider the requirements of not being a management distraction, being accretive and not actually draining our cash reserves. Right now, with the momentum we have, not distracting the management team from executing and delivering on the performance we've got at the moment.

Let's see if there's anything else I feel we haven't answered. "When does the market strategy change to demand gen versus awareness?

Why, given the GP margins, why not increase spend to grow revenue substantially?" It's not increasing spend.

It's about being targeted. What Chantal shared today is that next stage.

Now, in real terms, that is a material uplift in spend. It's just that it's in our existing budget, and we've repurposed it from being able to gain efficiencies of where we used to spend on CVCheck revenue.

The net result is we're achieving the effect in the efficiency of what we used to spend in CVCheck, still get the revenue I'm talking about, the $15, $16 mil per annum, but free up all that cash to spend material amounts in KC. As we get more and more data, we will not hesitate to go harder and harder.

We're getting the results we want to see at this point. The question then has come up of, "In the $10 mil pipeline, what is the existing CVCheck customers?"

None. Right.

We don't count in our pipeline conversion of existing revenue into a different product. It is only incremental revenue that is included in that pipeline.

"Where are you at with international expansion?" We have a plan in place, or a management target, of having international revenue this calendar year, and we are actively pursuing those plans.

As it evolves, we will share more data on that. Quick peruse of anything else.

Another question about ongoing capitalized spend. Look, I think Jason touched on it, and we have a continued effort and expectation that capitalized spend is there or thereabouts where it is now, maybe a little bit lower.

Having said that, we are in a very dynamic environment. What we're not going to do is, given the opportunity to invest in something for a clear, data-driven opportunity, that we won't take it, but we're not expecting to.

It is not like we have a whole bunch of things we still need to develop in this product. As I said in the press, we've taken that hit already.

"Will we continue to run webinars and keeping investors up to date with the company and AI?" Absolutely.

One of the lessons we've learned over recent weeks is we're probably more likely to do webinars with context than what we historically done of flashes, just to provide a quick bit of info into the market. I think particularly in light of the speed of change in markets, etc., context is everything.

We will absolutely continue to provide regular updates, but it is more likely to be in the form of quick webinars, etc., versus flash announcements. "Is there any potential for internal use of AI to reduce or cap employee salary expenses?"

Jason touched on this. The way that I think it significantly moves the needle is about the capping, in that with the tool set we have, the approach we've got, the products we've got, we believe we can handle or service materially more revenue than we have today with the existing head count.

It is not a case that as we grow, we need to grow operational head count. Now, that doesn't say we won't continue to grow sales and biz dev if they're generating revenue, why wouldn't we take them on?

Our cost to serve is being materially made more efficient through the use of AI. All right.

I think that covers it off. To close, to thank you, everybody, for taking the time to listen.

We look forward to sharing more information with you in the near future. Good morning.