Spoke to Brian last Friday He mentioned in answer to my...

Spoke to Brian last Friday He mentioned in answer to my questions
- The initiative by some scientists at Cambridge University to detect Covid -19 via cough was nothing to do with ResApp - our patents cover our Resapp algorithms but anyone else can develop their own algorithms for coughs/ respiratory over a mobile phone or other device
The key is that, as RAP knows, this takes a long time for arranging independent 3^rdparty adjuicated testing, collecting cough data, developing and testing algorithms, peer review, regulatory approval etc (probably for a fast follower at least 2 years possibly 3 years )
Things may be speeded up by the regulators for Covid-19 however just for Covid-19 testing. While RAP can today triage patients and between Upper and Lower Respiratory Tract Infection – prioritizing Lower Respiratory Tract for Covid-19 testing and hopefully RAP is working on adding specific Covid-19 testing for inclusion now or later. (It appears that Covid-19 does according to medical professionals have a distinct cough/stethoscope identifiable signature.- Hence it very important to protect the security of our algorithms preferably by keeping them on RAP’s own servers with secure access via cloud from partner systems.- Brian stated linkage to the partners is via cloud and the RAP- DX and the Sleep Easy algorithms reside on the ResApp server.- They are talking to many partners and governments about RAP-DX and about what it can do for the Covid-19 pandemic (thats as far as he would go - but I believe they are VERY busy and working VERY hard I tried all week to get through to Tony or Brian normal I can get strait through - now pretty much all answer phone. So yes I believe they are very busy.- Brian stated RAP have the resources to handle multiple partner installs at the same time - resources for implementation not a problem. (mmmmmm ? I hope so - in my experience from other entities ramping up resources for ‘onboarding’ new partners tends to be one of the biggest challenges as is finding good resources) - He remains confident that all FDA questions/concerns are readily answerable and hopeful that they can accept re-opening our submission rather than complete resubmission / new testing and or new filing of our FDA application.
(The lack of the same high level % success rate as EU and Australian testing seems simply down to the US test adjudicators failing to agree)My own interpretation is that as FDA etc. have “goal” timelines to meet for review or processing and decisioning applications i.e within X number of days and that the RAP-DX US Application was way past its target review dates it was sticking out like a ‘sore thumb’ so looked bad - so easier to decline.
I invest in a few patented AI, Block chain, cloud based 'disruptive' technologies with SAAS revenue models - one involves banks but in many ways is quite similar to RAP - it tends to be a long process, sales calls to numerous entities all with different silos in their organization, RFP's versus competitors, pilot programs and then final negotiation on price and other factors before final contracts exchange and then implementation.
It always amazes me with these businesses that although there is an indicative price in the initial presentations the final pricing agreement is normally left till the end of the process. Plus even though cloud makes it simpler and easier than putting a solution on a customers legacy system and its not ideal to put the AI on the customers legacy system or server as ideally you want the AI algorithm to reside with the company i.e. RAP that owns it.
Brian did say they were still talking to Sanofi however my read and from my experience above is that Sanofi probably tried to stiff RAP possibly on some sort of exclusivity, or where the RAP DX AI would ‘reside’ i.e. on Sanofi servers rather than RAP servers (i.e. how would one know that RAP is getting the revenue for each transaction), or it could have been that the sticking point was pricing.

My read is also that Coviu is a private equity owner that ‘bundles” services including soon to be RAP DX for Health Direct Australia a non profit owned government entity that provides the services to Clinics / Doctors. Likewise I wonder if their were pricing / server issues slowing implementation of this.

Anyway hopefully signing Phenix has hopefully provided fresh impetuous to Coviu with FOMO

As others have commented I think

1) Both recent hires in Europe/ UK Jamie Joint Director Sales and Marketing Europe and new Board Director Dr. Michael Stein seem excellent, experienced and well qualified so hopefully should speed up signings and implementations in Europe.

2) I think we need to take a good hard look at why we do not seem to be gaining traction in Asia. Its been 6 months since we had CE mark approval and one would think with Covid-19 bringing even greater Tele health focus it surprises me that we seem to have not made more progress. In China / Asia – You would think Ping An or other entities in China or Thailand, Malaysia Indonesia or Singapore would be very keen on adding RAP– I think we may need to bring in new better qualified people for Asia. (i.e. like Europe)

3) Operations and ‘Onboarding’ – This again I think needs to be given a good look at by the board. Have we got the right people ? / does the team need strengthening ?. It seems to be taking an inordinate time to implement Coviu and Plenix. I happen to agree with SanDiego and with all due respect to giving people a chance - I am sure we should have been able to find someone better qualified that from the local council.

4) The previous share grants that will expire 20 June were IMHO – were WAY TOO excessive/generous for management doing the job they are already well paid for. Yes I believe in incentives but options that are require to be paid for by management at an aggressive option share price i..e A$0.60 minimum which more is directly linked to the benefit of ordinary shareholders.
I think management thought US FDA approval was a “given” and took their eye off the ball on Experian and FDA and that management thought A$20 million in revenues would be a ‘slam dunk’ 6 months on we do not have to a cent in revenue and the Board needs to be more independent and do their job of representing shareholders and ask why not and be less generous on options and more aggressive on the targets for obtaining them

5) Many companies give forward guidance for the next quarter and next 12 months linked to (management annual goals) and revenue projections to shareholders – often updated in their Quarterly reports – I would like to see the Board and Management implement this otherwise how can we judge management performance – this is why goals and timing tends to slip.

Given my comments above I think we are at best 2 years ahead of any really aggressive competitors like Google Amazon or IBM etc who might want to build their own cough based AI software and Telehealth solutions and get them to market. Trust me if these entities really want to copy us they probably could and coming after us, with virtually unlimited resources could do it more quickly than its taken RAP.

The 2 new Europe hires are good, and I don't doubt the current team is working very hard however we need more results and IMHO RAP team needs to up its game and if there is not sufficient progress in the next 3 months there may IMHO need to be more changes in the Board and/ or Management.

I remain generally confident on RAP and worse case believe there will always be a larger entity that wants to save themselves 2-3 years of work by buying RAP at a premium to the current share price rather than building a similar product themselves

Lets hope for some good news in the quarterly announcement (Jan-March Qtr) due out either Friday or early next week. Sorry it's a long one and the bottle of red in now empty GLTA Thai