Announcement PDF ImpediMed Limited 1/50 Parker Court Pinkenba, QLD, 4008 Australia E: investorrelations@impedimed.com W : impedimed.com 29 August 2024 Companies Announcements Office Australian Securities Exchange 2024 Annual Report ImpediMed Limited (ASX: IPD) is pleased to release its Annual Report for the financial year ended 30 June 2024. Approved for release by the Board of ImpediMed Limited. For more information, contact Leanne Ralph, Company Secretary, at leanne.ralph@bellev.com.au AnnualReport 2024 Revolutionising patient care impedimed.com AnnualReport 2024 Overview ImpediMed is a leading global medical technology company that manufactures and sells innovative medical devices employing bioimpedance spectroscopy (BIS) technology. These devices are used for the non-invasive clinical assessment and monitoring of fluid status and tissue composition in patients. Patient-centric innovation, primarily addressing the significant challenges and burdens of secondary lymphoedema, with a particular focus on breast cancer-related lymphoedema (BCRL). Through the SOZO® Digital Health Platform and L-Dex®, ImpediMed offers the only FDA-cleared technology utilising BIS, becoming the standard of care for the early detection and management of BCRL. Our commitment is to address significant unmet patient needs in breast cancer-related lymphoedema and cancer-related lymphoedema, through innovation in the design and delivery of fluid and body composition analytics. Our newly appointed Board and Executive Leadership team is leading a refined strategy focused on sales execution and innovation. Our mission: To improve patient outcomes by setting new standards of care in fluid and body composition management. Contents 1 Overview 3 Letter to shareholders 5 SOZO® Digital Health Platform 8 Operating and financial review 12 Environmental, Social and Governance 14 Board of Directors 15 Executives 16 Directors’ report 22 Remuneration report 38 Auditor's independence declaration 39 Financial statements 77 Consolidated entity disclosure statement 78 Directors' declaration 79 Independent auditor's report 84 Shareholder information 87 Glossary 88 Corporate directory 1 AnnualReport 2024 Platform technology Revolutionising patient care Mar 5, 2023 at 13:56 Patient received taxane-based chemotherapy today. JD Feb 7, 2023 at 17:27 Mar 5, 2023 at 13:56 Notes for the patient Patient received physical therapy within past 5 days. MD Today’s measurement provided a detailed breakdown of this patient’s fluid levels and body composition. This information is being used to proactively 5, 2022 12:52 manage her care. Remeasure thisAug patient at herat next visit to track her progress. JD Patient’s medication changed today. JD SOZO Core Business quarterly Total Contract Value (TCV) 3.8 3.5 3.4 3.2 $A millions 2.8 2.2 2.2 1.6 Focus on commercial execution with urgency Gaining momentum FY23 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY24 Q1 FY24 Q2 FY24 Q3 FY24 Q4 2 AnnualReport 2024 Letter to shareholders As we conclude the 2024 financial year, we are proud to reflect on a year of significant progress and achievement for ImpediMed. Our commitment to advancing patient-centric innovation continues to drive what we do, reinforcing our position as a leader in the medical technology field. This year, we have made significant strides in addressing the critical needs of patients suffering from secondary lymphoedema, particularly breast cancer-related lymphoedema (BCRL). Our SOZO® Digital Health Platform and L-Dex® technology continue to set new standards in the early detection and management of BCRL, distinguishing ImpediMed as the sole provider of FDA-cleared BIS technology. A key highlight of 2024 has been the substantial progress in increasing reimbursement for our platform technology. Starting the financial year with zero covered lives and ending the year with 140 million covered lives in the United States, our solutions are now more accessible than ever, ensuring that a greater number of patients can benefit from early detection and prevention of chronic lymphoedema, a debilitating and potentially life-long condition. The opportunity for our solutions in breast cancer-related lymphoedema and other cancer-related lymphoedema is compelling. We have continued to see adoption of our digital health platform in leading cancer centres, underscoring the unmet needs and significant market opportunities that lie ahead. FY2024 saw the appointment of a new Board in September 2023, McGregor Grant as interim CFO in November 2023 and Dr Parmjot Bains as interim CEO in January 2024. In July 2024, the CEO and CFO roles were appointed on an ongoing basis. In February 2024, Christine Emmanuel-Donnelly was appointed Chair of the Board and Chair of the Nomination Committee, in addition to her role as Chair of the Remuneration Committee. In June 2024, Ms Fiona Bones, was appointed to the Board as a Non-executive Director and subsequently Chair of the Audit and Risk Management Committee. Since the appointment of the new Board, ImpediMed has leveraged the significant experience of the Directors. In April 2024, Director Andrew Grant was appointed to the role of Vice President of Product Development and Customer Solutions in an interim capacity, for a maximum of six months, with the key responsibility to lead the development of ImpediMed’s new product roadmap, together with ensuring an appropriate organisational structure is in place to deliver on its plans. Andrew’s executive appointment will end in October, after which he will continue as a Non-executive Director. Janelle Delaney has visited the software team in Greece to review the software development processes and made a number of recommendations to improve quality and speed of outputs, which are now being implemented. Christine Emmanuel-Donnelly's IP experience is being leveraged to strengthen our IP portfolio. April 2024 saw the establishment of a new Executive Leadership team with world-class capabilities, a renewed focus and refined strategy, centering on sales execution and operational excellence. Forty-four percent of our team are now in roles that face customers directly, driving this customer and sales execution focus. Our team's dedication and expertise have positioned us for sustainable growth and lay a solid foundation for achieving our financial targets. Revenue growth for the first 3 quarters of the financial year was slow, but Q4 results were encouraging, showing signs of the emerging impact of the focus on sales and marketing execution, with 12% growth in revenue, 135% growth in the leads pipeline, and a 7.5% increase in patient measurements over the previous quarter. Total revenue in FY24 was $10.3 million, compared with $11.3 million in FY23. Revenue associated with the SOZO-Core business was $9.7 million, an increase of 14% compared with FY23 SOZO-Core business revenue of $8.5 million. 3 AnnualReport 2024 Letter to shareholders In Q4 FY24 actions were taken to reduce the Company’s cash burn rate. As a result, FY25 operating cash expenditure is forecast to be 10% lower compared with FY24 (after allowing for one-off costs and other normalisation adjustments) mainly as the net result of adjustments to headcount, salaries and investment in customer facing roles. FY24 saw numerous publications supporting BIS technology for prevention of lymphoedema, which is critical to driving medical awareness. These publications build on more than 500 peer-reviewed, published articles on our BIS technology and over 40 different disease states or medical conditions. At ImpediMed, we pride ourselves on the diversity and inclusivity of our Board and Executive Leadership team. Our leadership comprises individuals from a wide array of backgrounds, experiences, and perspectives, reflecting our commitment to fostering an environment where innovation thrives. Gender diversity on our Board is 67% female and 33% male, and Executive Leadership team 44% female and 56% male, and our team comes from a diverse range of backgrounds and experiences. This diversity enables us to better understand and address the needs of the global markets we serve. By incorporating varied insights and expertise, we drive more effective decision-making and strategic planning, ultimately leading to improved patient outcomes and commercial success. Our diverse team is a cornerstone of our strength, fueling our mission to revolutionise medical technology and enhance the lives of patients worldwide. Looking ahead to FY25, we are well-positioned to continue our growth trajectory. Our focus remains on expanding our market presence, driving revenue growth, and moving towards cash-flow break-even. We are confident that our strategic initiatives in lymphoedema, and building new indications will continue to deliver value to our shareholders and improve the lives of patients worldwide. We extend our deep gratitude to our dedicated employees, whose hard work and passion drive our success, and to our shareholders for their continued support and confidence in ImpediMed. Together, we are making a difference in the lives of patients and shaping the future of medical technology. Thank you for being part of our journey. Christine Emmanuel-Donnelly Chair Dr Parmjot Bains Managing Director and CEO 4 AnnualReport 2024 A single SOZO measurement provides: L-Dex® lymphoedema analysis HF-Dex® heart failure analysis BodyCompTM analysis Hy-Dex® hydration analysis One device, multiple FDA cleared applications Lymphoedema - FDA clearance, CE Mark Body composition - FDA clearance, CE Mark Heart failure - FDA clearance, CE Mark Protein calorie malnutrition - FDA clearance, CE Mark The World’s Most Advanced Non-Invasive Bioimpedance Spectroscopy (BIS) System SOZO, utilising cutting-edge BIS technology, delivers a comprehensive snapshot of fluid status and tissue composition in under 30 seconds. ImpediMed’s proprietary technology sends 256 unique frequencies through the body to assess both intra and extracellular fluid. This precise detection of fluid changes aids healthcare providers in managing chronic diseases and offers individuals valuable insights for personal health management. BIS provides highly accurate metrics for routine monitoring and patient health management. 5 AnnualReport 2024 Results are instantly available at the point of care through cloud-based software, allowing for aggregation and trending across the healthcare system. This FDA-cleared, CE-marked, and ARTG-listed digital health platform supports early detection of secondary lymphoedema, monitors fluid status in heart failure patients, and aids in overall health maintenance from a single measurement. Actionable Aggregates and trends patient data for actionable insights. Scalable Patient data accessible by care teams across the health system. Quick 30-second, non-invasive test. Secure Controlled access to the HITRUST certified SOZO network with unique security settings. Strong Adoption and Validated Technology ImpediMed, through its parent company and subsidiary ImpediMed, Inc., is a global provider of medical technology for measuring, monitoring, and managing tissue composition and fluid status using BIS. Revenue is generated through the system sale of medical devices like SOZO and subscription services for SOZO devices. In the U.S., a direct sales force focuses on SOZO health system contracts, while independent distributors manage sales outside the U.S. THE UNIVERSITY OF TEXAS 1,000+ SOZO Systems placed globally San Diego’s Health Care Leader WEXNER MEDICAL CENTER 6 AnnualReport 2024 Clinical Practice Guidelines Support BIS In March 2024, the NCCN Clinical Practice Guidelines in Oncology (NCCN Guidelines®) for Survivorship reaffirmed BIS as the recommended tool for screening at-risk cancer patients for early signs of lymphoedema. ImpediMed, with its SOZO® Digital Health Platform and L-Dex®, remains the sole provider of FDA-cleared BIS technology for lymphoedema assessment. The guidelines advocate regular screening for cancer survivors at risk. New clinical guidance published in eClinicalMedicine by the Multinational Association of Supportive Care in Cancer (MASCC) highlights early detection and prevention strategies, emphasising the importance of regular monitoring for lymphoedema. Guidelines Support Subclinical Detection, Intervention and BIS NCCN National Comprehensive Cancer Network® (NCCN®) American Society of Breast Surgeons For patients and survivors at risk for lymphoedema: • Recommends regular screening for lymphoedema by bioimpedance spectroscopy if available1 For breast cancer patients: • Recommends prospective surveillance • Recommends baseline and follow-up measurements International Society of Lymphology (ISL) Multinational Association of Supportive Care in Cancer For cancer patients at risk for lymphoedema: • Recommends prospective surveillance • Recommends bioimpedance spectroscopy (BIS) as an option for early detection For cancer patients at risk for lymphoedema: • Recommends prospective surveillance • Recommends bioimpedance spectroscopy (BIS) as an option for early detection American Physical Therapy Association Oncology Nursing Society For breast cancer patients: • Recommends prospective surveillance • Recommends monitoring with BIS For diagnosis of upper quadrant lymphoedema: • Recommends L-Dex to detect subclinical lymphoedema For patients who have had cancer-related surgery: • Recommends prospective surveillance • Recommends lymphoedema education Lymphatic Education & Research Network Center of Excellence Program National Lymphedema Network • Requires risk assessment using perometry or bioimpedance spectroscopy • BIS provides reliable data and can detect early changes associated with lymphoedema 1. Referenced with permission from the NCCN Clinical Practice Guidelines in Oncology (NCCN Guidelines®) for Survivorship V.1.2024. © National Comprehensive Cancer Network, Inc. 2024. All rights reserved. Accessed April 15, 2024. To view the most recent and complete version of the guidelines, go online to NCCN.org. NCCN makes no warranties of any kind whatsoever regarding their content, use or application and disclaims any responsibility for their application or use in any way. McLaughlin SA, et al. Considerations for Clinicians in the Diagnosis, Prevention, and Treatment of Breast Cancer-Related Lymphedema: Recommendations from a Multidisciplinary Expert ASBrS Panel. ASO 2017;DOI 10.1245/s10434-017-5982-4. The diagnosis and treatment of peripheral lymphedema: 2020 Consensus Document of the International Society of Lymphology. Lymphology. 2020;53:3-19. Wong HC, et al., Multinational Association of Supportive Care in Cancer (MASCC) clinical practice guidelines for the prevention of breast cancer-related arm lymphedema (BCRAL): international Delphi consensus-based recommendations. eClinicalMedicine 2024;68:102441. Davies C, et al. Interventions for Breast Cancer–Related Lymphedema: Clinical Practice Guideline From the Academy of Oncologic Physical Therapy of APTA. Physical Therapy 2020;100(7):1-17. Levenhagen K, et al. Diagnosis of Upper Quadrant Lymphedema Secondary to Cancer: Clinical Practice Guideline From the Oncology Section of the American Physical Therapy Association. Physical Therapy 2017;97(7):729-45. Armer J, et al. ONS Guidelines™ for Cancer Treatment-Related Lymphedema. Oncology Nursing Forum 2020;47(5):518-38. LE&RN Centers of Excellence Program Description and Link to Online Application. https://lymphaticnetwork.org/documents/CoE_Program_Description_ and_Link_to_Online_Application.pdf. Accessed August 6, 2021. National Lymphedema Network Position Statement: The Diagnosis and Treatment of Lymphedema. February 2011. 7 AnnualReport 2024 Operating and financial review Continued momentum with private payors Since June 2023, ImpediMed has secured coverage with a number of private payors, including two of the top five private payors and several regional payors. As a result, over 140 million lives are covered in the U.S with sixteen states reaching over 80% coverage, reflecting significant payor adoption, and supporting increasing patient access. Expanded customer footprint – poised for growth With increasing payor coverage, ImpediMed is seeing growth in adoption of SOZO by health systems. The growth was evident in Q4 FY24 with expansion into a number of large Integrated Delivery Networks (IDNs) along with sales to new customers and renewals of existing contracts. During Q4 FY24, expansions into key IDNs included: • A Texas oncology group expansion with 6 new devices increasing to 8 in total; • A national plastics and breast surgical group expanded its pilot of 3 SOZOs in December '23 with additional 5 units in Q4; and • A Connecticut large IDN continued system expansion to 9 units in total. With a strong presence in top-tier customers, including 23 of 33 NCCN Institutions, 17 of the top 25 IDNs, and over 150 of the top 500 U.S. Cancer Centers, ImpediMed is well-positioned for continued growth. Technology adoption – increased patient testing Since the launch of SOZO, over 900,000 patient tests have been conducted, with 250,000 in FY24, representing an 18% year-over-year increase. Q4 FY24 saw a record 68,000 tests, a 22% increase compared with the same quarter of the previous year. This patient database, which has grown at a 3-year CAGR of 24%, has enhanced the accuracy of SOZO, automated key protocols, improved algorithms, and provided real-world data for regulatory clearances. SOZO Patient Tests (000s) Follow-up New 300 24% 250 3-year CAGR1 Thousands 200 150 100 50 0 FY18 FY19 FY20 FY21 FY22 FY23 FY24 1. Compound Annual Growth Rate (based on annual totals) 8 AnnualReport 2024 Operating and financial review Installed base growth Global installed base grew 9% over the year finishing FY24 with 1,083 SOZO systems installed. In the U.S., installed base grew in FY24 by 42 units or 8% to 570 units. In FY24 a total of 68 new units were installed, down 13% compared with 78 new units installed in FY23. In Q4 FY24 a total of 23 new units were placed in the U.S., an increase of 77% compared with the previous quarter, demonstrating improved momentum resulting from the emerging impact of the focus on sales and marketing execution. In the Rest of World (ROW) markets, the installed base grew 9% to 513 units, a net increase of 44 units over FY23. Total new placements for the year were 45, highlighting very low churn in the region. The majority of ROW sales were made in Australia via the Company’s distribution partner. Installed Base Units1 Up 9% vs FY23 Global 997 933 71 1,041 57 U.S. Rest of World 1,083 56 64 Up 8% vs FY23 489 32 528 46 547 32 Up 9% vs FY23 570 36 444 32 FY23 H1 FY23 H2 FY24 H1 FY24 H2 FY23 H1 FY23 H2 FY24 H1 FY24 H2 Opening IB2 469 25 494 25 513 20 FY23 H1 FY23 H2 FY24 H1 FY24 H2 New devices added 1. Review of installed base underway 2. Net of churn in current quarter (FY24 global churn <3%) Churn = [Number of devices cancelled or not renewed in period] / [Average cumulative device placements in the period]. New market opportunities and development activities ImpediMed is finalising development of a new software release that will further enhance the functionality and user experience of the SOZO Digital Health Platform and SOZO Pro, the next generation of the SOZO system which includes an integrated scale and the removal of the contra-indication for patients with pacemakers and implantable defibrillators. As part of ImpediMed's R&D strategy, Andrew Grant, interim VP Product Development, is leading a review of new market opportunities, including oncology related body composition and heart failure/acute care, with the aim of incorporating the results of this review into an updated product development roadmap in H1 FY25. 9 AnnualReport 2024 Operating and financial review Global revenue Total revenue in FY24 was $10.3 million, a decrease of 9% or $1.0 million compared with FY23. In constant currency1 total revenue was down 11% compared with the previous year. The decrease in revenue was mainly due to the completion of clinical trials conducted by AstraZeneca, which contributed revenue of $0.1 million in FY24 compared with $2.0 million in FY23. Significantly, revenue associated with SOZO Core Business2 in FY24 was $9.7 million, up $1.2 million or 14% compared with FY23. Revenue in North America was $9.3 million, an increase of $1.0 million or 12% compared with FY23. 10.6 $A millions 3.3 11.3 2.0 0.8 10.3 0.5 0.1 Clinical Legacy/other SOZO Core Business FY22 8.5 FY23 9.7 FY24 SOZO Core Business ARR 6.1 FY23 H2 FY24 H1 FY24 H2 0.9 8.3 9.3 FY23 FY24 0.1 ROW North America SOZO Core Business TCV 7.0 5.6 $A millions FY23 H1 10.3 2.0 1.0 SOZO Core Business Total Contract Value (TCV5) signed in FY24 was $9.4 million, compared with $13.3 million signed in FY23. TCV signed in H2 FY24 was up $1.8 million or 47% compared with H1 FY24. 6.3 $A millions 8.2 10.1 11.0 11.3 Unallocated (Clinical) 1.1 FY22 SOZO Core Business Annual Recurring Revenue (ARR3) on contracts was $11.0 million at 30 June 2024, compared with $9.3 million at 30 June 2023. Churn rate4 <3%. 9.3 10.6 3.3 0.7 6.5 Global Revenue by Geography $A millions Global Revenue by Category 3.8 FY23 H1 FY23 H2 FY24 H1 FY24 H2 1. Constant currency removes the impact of foreign exchange rate movements to facilitate comparability of operational performance. This is done by converting the current year revenue of entities that use currencies other than Australian dollars at the average rates that were applicable in the prior year. The average exchange rate used for the Company’s major foreign currency (USD) for the year was 0.6553 (2023: 0.6729). 2. SOZO Core Business represents revenue from SOZO contracts in the Oncology/Lymphoedema market and excludes SOZO Clinical Business and legacy device/other revenues. 3. Annual Recurring Revenue (ARR) represents the amount of revenue reasonably expected to be recognised for the next 12-month period based on existing contracts, assuming installation upon sale and no churn. The exchange rate used for ARR calculation was 0.66699 (2023: 0.66387). 4. Based on SOZO units globally. [Number of units cancelled or not renewed in the period] / [Average cumulative unit placements in the period]. 5. SOZO Core Business Total Contracted Value (TCV) includes any consideration for the sale of SOZO units as well as the total licence fees for the duration of the signed contracts. Typically, these contracts are for a period of three years. 10 AnnualReport 2024 Operating and financial review Other financial results Gross margin Gross profit margin was 87% for the year, compared with 86% in FY23. Finance and other income Total finance income for the year was $1.5 million, an increase of $0.7 million compared with FY23 driven by higher interest income. Total other income for the year was $2.8 million, an increase of $1.2 million compared with FY23 driven by a non-recurring U.S. Government grant of $1.9 million offset by a lower Australian R&D tax incentive credit of $0.7 million due to lower R&D expenditure. Operating expenses Total operating expenses for the year were $33.0 million, an increase of $0.3 million compared with FY23 operating expenses of $32.7 million. Salaries and benefits in FY24 were $21.5 million, an increase of $1.3 million compared with the salaries and benefits expense in FY23 of $20.2 million. Salaries and benefits in FY24 comprise 65% of total operating expenses and include $2.1 million related to severance payments. In FY23 salaries and benefits included $2.8 million in termination payments. Share-based payments was a credit of $0.7 million, $1.4 million lower than the expense of $0.8 million in FY23 driven by forfeitures related to former employees. Administration and governance expenses were $3.2 million for the year, an increase of $0.5 million, mainly driven by costs associated with the general meeting of shareholders held in September 2023. Operating result Net loss from continuing operations was $19.8 million in FY24, compared with $20.5m in FY23. The decreased loss was driven by higher finance and grant income and lower share-based payments, partially offset by lower gross profit following the completion of AstraZeneca clinical trials, and higher salaries and benefits expense. Cash Cash and cash equivalents were $24.6 million at 30 June 2024 compared with $45.7 million at 30 June 2023. Net cash used in operating activities during FY24 was $17.8 million compared with $18.0 million in the prior year. The net cash used in operating activities in the period includes receipts from government grants/tax incentives of $3.4 million compared with $1.7 million in FY23, and interest received of $1.6 million compared with $0.7 million in the prior year. Net cash flows used in investing activities during FY24 was $3.1 million compared with $6.0 million in FY23. The decrease is primarily related to lower expenditure on the development of SOZO Pro, as this work nears completion. FY25 cash expenditure is forecast to be 10% lower compared with FY24 (after allowing for one-off costs and other normalization adjustments) mainly as the net result of adjustments to headcount, salaries and investment in customer facing roles. 11 AnnualReport 2024 Environmental, Social and Governance CEO Statement ImpediMed’s mission is to improve patient outcomes by setting new standards of care in fluid and body composition management. ImpediMed is committed to a sustainable future and recognises that to achieve its mission we must understand and minimise our environmental impacts; meet our social responsibilities to our employees, customers and the broader community; and maintain high standards of corporate governance. We are focused on the health and well-being of patients, with our vision to revolutionise patient care with innovative fluid and body composition analytics, enhancing health outcomes through validated, guideline-supported platform technology. Our technology provides clinically relevant insights that hospitals and providers around the world are using to gain a deep understanding of the human body. As our technology becomes the standard of care in oncology care, we believe the positive impact it will have on healthcare and on patients’ lives will be transformational. Over the last 3 years the number of patients tested using the SOZO platform technology has increased 24% each year. Since the SOZO was introduced, over 900,000 patient tests have been completed with 250,000 patient tests completed in FY24. ImpediMed is in the early stages of its ESG journey, and as the business evolves, we will continue to develop our ESG framework and disclosures. Further, as we continue to develop our strategic goals, we will ensure they are aligned with ESG principles, while staying true to our commitment to creating long-term value for our stakeholders, including our employees, our patients and our shareholders. Diversity is a cornerstone of our strength. ImpediMed’s Board and Executive Leadership team includes individuals from a wide array of backgrounds, experiences, and perspectives. Our Board comprises 67% female and 33% male Directors, and the Executive Leadership team comprises 44% females and 56% males. This diversity enables us to better understand and address the needs of the global markets we serve. The new Board, established in September last year, is committed to strong corporate governance with 3 Non-executive Independent Directors. Since September the composition of the Board has evolved, most recently with the appointment of Ms Fiona Bones, who also Chairs the Audit and Risk Management Committee. With her experience as Vice President of Finance, International Controller at Google Fiona brings a wealth of global experience in finance, corporate governance and systems information. Andrew Grant’s executive appointment will end in October 2024, and he will then resume his role as a Non-executive Director, increasing the number of Non-Executive Directors to 4, with 2 Executive Directors. Dr Parmjot Bains Managing Director and CEO 12 AnnualReport 2024 Environmental, Social and Governance At ImpediMed, our commitment to Environmental, Social, and Governance (ESG) principles is integral to our operations and corporate culture. We continue to refine our ESG journey, and integrate Environmental, Social, and Governance (ESG) principles into our operations and culture. Over the next 12 months, we are committed to making meaningful progress in alignment with leading ESG frameworks and addressing the factors most material to our business. Environmental We are dedicated to minimising our environmental footprint through sustainable practices, including reducing waste, optimizing energy usage, and ensuring responsible sourcing of materials. Our commitment in the environmental space begins with working with our contract manufacturers and largest suppliers to ensure these partners have robust policies in place, as well as our focus on end-of-life recycling on equipment and parts. All of our end-of-life parts and scrap are disposed of through certified methods. We continue to review our processes and our manufacturing and supply chains to identify risks and opportunities for our business to have a positive impact on the environment through energy and waste reduction. Social We are committed to fostering a positive social impact by promoting diversity and inclusion within our workforce, supporting community initiatives, and are continuing to ensure equitable access to our life-enhancing technology platform. These efforts underscore our mission to drive meaningful progress while upholding our values and responsibilities to all stakeholders. ImpediMed is commited to advanc