Grab a coffee or wine or whiskey, this is going to be a big read...
Disclosure: As promised here is my write up on the results of my meeting with the COO and a T20. I have acquired the parcel I wanted. My intentions for this post is to update and help educate shareholders on the company and adjust expectations.
In November I met with Tali Chief Operations Officer Pete Saunders and a Top 20 shareholder to discuss the company and express some concerns regarding revenue. Like many shareholders here I was having some concerns with management and revenue. I have since had all concerns settled and learnt quite a bit more about the company and its direction. My only criticism of the management is that I don't believe they have expressed the company direction overly well and updated shareholders accordingly which why so many SH seemingly share similar concerns.
I'll set it straight here as well as let you all in on some things that aren't widespread public knowledge.
The company are currently most focused on the Australian and Indian market.
For the US, Europe and other international markets they are more so seeking partners to distribute and manage operations through selling licenses either for the complete package or even just for their highly valuable IP.
Australia is still awhile off revenue, I'll touch more on this later.
India is our current primary focus for commercialisation and launch due to a much easier regulatory climate to navigate and the fact that it's the largest and fastest growing middle class in the world with a huge emphasis on education and gaining an edge in a country with 1.6b people. India will likely be our first market.
In Australia, Europe and US having a medical device status is at these early stages our biggest barrier to market and a bit of a double edge sword. However as we get more approvals and systems in place, it is what will launch Tali into the market at full steam.
Medical Device status means it's more limited on how we market our products. It also means that you cannot access Tali Train without a referral or prescription which is why we aren't seeing significant revenue yet.
Our focus in Australia is predominantly working on getting on the Medicare rebate scheme. This will make it very easily reimbursable for the consumer and a significant incentive. There is also a previously unknown revenue stream they are working on that will vastly accelerate our market launch and progress. They are designing an accredited course targeted at doctors and healthcare professionals like psychologists focusing on attention and it's impacts. This accredited course will count towards the required education hours these professionals must maintain every year while also being tax deductible for them to take as well. It of course will also serve as an educational tool and awareness campaign for Tali products. This is an excellent strategy and to my knowledge is not yet publicly known.
In terms of big revenue in Australia there is still more foundational work to do which will take likely more than 12 months to get in place but when we are ready, it'll be a license to print money. Doctors will be more informed and educated and parents will be able to access Tali Products for next to nothing, it's a no brainer.
For international market they are more so focusing on getting single partnerships for the various markets with distributors who can take the helm and either license the full software suite or just the APIs and IP and develop it further into their own segment. Our IP is extremely valuable and could potentially be used for many other applications.
Tali themselves are also working on concepts for a suite of products beyond just attention deficits. Keep in mind that attention deficit is a potential symptom of a wide range of disorders such as depression, ASD, anxiety as well as ADHD, etc. So in the short term, revenue will still be slow going but to offset this they are focusing on the Indian market as the regulatory environment there is easier to navigate.
I did question Pete if they are aware of Akili Interactive and how they few them as a competitor. Pete summarised it nicely and in short said they aren't viewed as a competitor so much as someone that can go hand in hand. They have different IP and platforms and focus on a much higher age range which means it's not direct competition with Tali that undercuts there age as well as focusing on the neuroplasticity of young children. Akili also don't have a diagnostic platform like Tali does. Personally I see Tali as a far superior platform with a broader offering.
Management are on an excellent track and have their heads well screwed on the right way. This is a very strong long term play. Honestly and conservatively speaking, after hearing Peter's personal vision and knowing Glenn's target of 1m kids by 2023, I would say this is comfortably and feasibly a Disallowed over the next 3 years. Quite possibly more. Fundamentals are strong. IP is very valuable and they are heading in the right direction.
Hopefully I've helped you all understand a little better where we are heading and the timeline it will take. Revenue will still be awhile off. But when it rains, it pours.
Happy new year all and good luck to all holders.
Apologies for type, I've typed it on my phone.
Questions welcome.
(20min delay)
