archTIS Limited

All right. Good morning. Today, I'm here with Arctis Limited, a leading global provider of data-centric software solutions for the secure collaboration of sensitive information based here in Australia, but with significant operations developing overseas, including the United States. Q1 for FY2026 has been a significant period for the company, with major operational milestones, including the successful acquisition of the assets of Spirion, based in the US. And today I am joined by Arctis CEO and Managing Director, Mr. Daniel Lai, as well as Arctis Global COO and US President, Mr. Kirk Muffelman, both of whom are here today to discuss the company's results for the quarter. Good morning, gentlemen. Kurt, I'm going to hand over to you to kick things off.

Great. Thank you. Good morning, Jane, and good morning, everybody. Thank you for attending today's presentation. I just want to give a couple of comments that we're going to focus on the financial performance and key growth drivers in the U.S. around Spirion and our expanding engagement within the U.S. Department of Defense. We'll also outline the go-to-market strategies that are underpinning each initiative and how they align with our broader plan to accelerate growth, strengthen profitability, and create longer-term shareholder value as we drive the business forward. So I'd like to start by having Dan take us through the quarterly updates. Dan?

Thanks very much, Kurt, and welcome everybody to our quarterly webinar. We've got quite a range of information to go through, so we'll do this as best we can. But there's a lot of information to share with you on where we are in the market. But the highlights have been really the focus and pivot to the U.S. marketplace. And that's, of course, one of the great things that we've announced recently was the additional U.S. DOD contract for services contract. about enhancing our product, NC Protect, to be able to be integrated and expanded into that environment. That's complementary to the licences deal that we announced earlier. That's a really confidence-building initiative, particularly for us in the market, and it gets us more strongly engaged on a daily basis with that client. The sparing asset acquisition. That's complementary as well. It's all about us pivoting the business into that US market, which is 40% of the data-centric security market and is the largest market in the world. The acquisition experience gives us other data-centric experience and capability, as well as a new client base to cross-sell in the commercial space, which is fantastic as well. That 150 customers is something that we're looking to leverage and grow off. Of course, the acquisition means that we've jumped from an ARR all the way up to $19 million from a $4.2 million. The licensing revenue of 78% gives us a solid cash balance after we've done those capital put that acquisition to bed, $13.8 million available funding. Margins are still high at 75% gross. We have, obviously, with that increase in doubling the size of the organisation, increased our operating expenses, but a large chunk of that was also one-off costs associated with the acquisition. So I'll get Kurt to jump into some of those financials in more detail.