Cloudastructure, Inc.

Greetings, and welcome to the Cloud Structure Incorporated second quarter business update conference call. At this time, all participants are in a listen-only mode, and a question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. And please note, this conference is being recorded. I will now turn the conference over to your host, Mr. Ted Avas of Crescendo Communications. Sir, the floor is yours.

Thanks, Ali. Good morning and thank you for joining Clyde's Structuring Second Quarter 2025 Earnings Conference Call and Business Update. On the call with us today are James McCormick, Chief Executive Officer of Cloud Astructure, and Greg Smitherman, Chief Financial Officer. Earlier today, the company issued a press release announcing its operating results for the three-month end of June 30, 2025. The release is available on our website at www.cloudastructure.com, and our Form 10-Q can be found both there and at the SEC website, www.sec.gov. If you have any questions after today's call, please contact Crescendo Communications at 212-671-1020. Before Mr. McCormick reviews the company's operating results for the quarter ended June 30th, 2025 and provides a business update, I would like to remind everyone that this conference call may contain forward-looking statements. All statements other than statements of historical facts contained in this conference call, including statements regarding our future results of operations and financial position, strategy and plans, and our expectations for future operations are forward-looking statements. The words aim, anticipate, believe, could expect, may, plan, project, strategy, will, and the negative of such terms, in other words, in terms of similar expressions, are intended to identify forward-looking statements. These forward-looking statements are based largely on the company's current expectations and projections about future events and trends that it believes may affect its financial condition results of operations, strategies, short-term and long-term business operations, and objectives and financial needs. These forward-looking statements are subject to several risks, uncertainties, and assumptions as described in the company's filings with the SEC, including the company's annual report on Form 10-K for the year ended December 31, 2024. Because of these risks, uncertainties, and assumptions, the forward-looking events and circumstances discussed in the conference call may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. You should not reply upon forward-looking statements as predictions of future events. Although the company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, level of activity, performance, or achievements. In addition, neither the company nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. The company disclaims any duty to update any of these forward-looking statements except as required by law. All forward-looking statements attributable to the company are expressly qualified in their entirety by these cautionary statements as well as others made on this conference call. You should evaluate all forward-looking statements made by the company in the context of these risks and uncertainties. I would now like to turn the call over to Mr. James McCormick, Chief Executive Officer of Cloudastructure. James?

Thanks, Ted. Well, good afternoon, everyone, and thank you for joining us today for what is our first earnings call since Cloudastructure's shares began trading on NASDAQ in January of this year. This is an important milestone for our team, our customers, and our shareholders, and we appreciate your interest as we update you on our progress. For those of you who are newer to our story, Cloud Astructure is a leading provider of AI-powered video surveillance and remote guarding solutions. We combine computer vision, AI analytics, and human intervention to detect threats in real time, engage directly with suspects through live audio, and in most cases, stop incidents before they escalate. It has been our experience that this proactive approach stops 98% of threatening activity, transforming security from a cost center into a real competitive advantage for our customers. We operate in a massive and fast-growing space. Cloud Astructure sits right where the worldwide security, public cloud, and the AI markets overlap, and all three are expanding at double-digit rates. According to Gartner, the global AI market is already worth over $430 billion. The public cloud market is on its way to $920 billion, and the security market has exceeded $200 billion a year. With that kind of scale and momentum, we have a tremendous runway for growth opportunities ahead. Q2 was a standout quarter where the investments we've made and the foundation we've built truly paid off, which reinforces our strategy. We have been firing on all cylinders, growth, execution, customer wins, and product innovation all aligned. Revenue surged 267% year over year. We realized our second straight quarter of positive gross margins. And in just the first half of 2025, we signed $2.69 million in new customer contracts for products and services which will be delivered over the next 12 months. This marks a 274% increase over the same period last year. And this six-month value represents a 79% gain over the full year 2024 totals. The momentum we're seeing is being fueled by a major shift in the industry. Property owners and operators are realizing that traditional surveillance systems that simply record video aren't enough. They need solutions that actively prevent problems, reduce liability and protect people in real time. And that's exactly what the cloud structure platform delivers. During the quarter, we made progress across every major vertical that we serve. In affordable housing, we partnered with a respected nonprofit housing authority in Colorado to deploy our AI-powered remote guarding solution at four communities dealing with loitering, illegal dumping, and curfew violations in shared spaces. Our system, which has deterred 98% of threatening activity year to date, brought them real-time threat detection, live intervention capabilities, and a safer environment for residents. For two of the sites, we offered flexible financing so they could upgrade to our platform without heavy upfront costs. In mixed-use developments, we were selected by one of the nation's top-ranked property developers to secure a flagship community that seamlessly combines residential, retail, and commercial spaces. This high-profile property had been contending with serious security challenges from recurring vehicle break-ins and unauthorized access through retail entrances to the trauma of an active shooter incident in the vicinity. After evaluating options, they chose our AI-powered platform for its ability to deliver real-time threat detection proactive intervention, and long-term operational efficiency. This installation gives the company the opportunity to scale across their entire 15-state portfolio, including Washington, D.C., of over 30,000 units and 152 communities. We also entered the construction market with the launch of our Alpha mobile surveillance trailer. developed in partnership with Flex Security. This solar-powered, AI-enabled unit was purpose-built for high-risk job sites, featuring cameras with auto detection, intelligent object tagging, and multiple power options, including solar, battery, and backup generator, to ensure uninterrupted operation, even in remote or challenging environments. Our first sale of this unit went to a national renewable energy contractor that was seeking a faster, more reliable, and more responsive alternative to traditional monitoring services. By combining real-time AI threat detection with proactive remote intervention, Alpha addresses one of the industry's most pressing problems, which is construction site theft. which costs up to $1 billion annually. With strong early interest and proven capabilities, Alpha is already demonstrating its potential as a significant new growth driver for our business. Operationally, July was a record-breaking month where we completed more installations in just 30 days than in any month in our history. A standout project was a major multi-use luxury complex where we deployed more than 100 security cameras across 375,000 square feet while completing the job an entire month ahead of schedule. This achievement reflects not only the efficiency of our team, but also the growing demand for our solutions. And to meet that demand, we've doubled the size of our implementation team and are continuing to expand our certified installer network, ensuring we can deliver faster at scale without compromising quality. From January through June, our platform generated 5.37 million alerts and facilitated approximately 60,000 live audio interventions. By pairing AI-driven threat detection with trained human response, we achieved a 98% deterrence rate, stopping incidents before they escalated. These interventions addressed everything from trespassing and theft attempts to more serious threats. demonstrating the real-world impact and reliability of our technology in protecting people and property. Finally, our leadership in AI was recognized on a global stage when cloud structure received the AI Breakthrough Award for Imaging Processing Solution of the Year. This award highlights how we bring together smart technology and human expertise to create a proactive security solution that delivers real, measurable results. We view this as a clear acknowledgement of the impact we're having for our customers and the innovation driving our success. In short, we're scaling fast and doing it the right way without sacrificing quality. With the strong foundation we've built, we're ready to seize the opportunities ahead and carry this momentum into an even stronger second half of 2025. I would now like to turn the call over to Greg Smitherman, our Chief Financial Officer, who will review the financial results for the quarter ended June 30th, 2025. Greg?