Cloudastructure, Inc.

Greetings and welcome to the Cloudastructure, Inc. first quarter 2026 Business Update conference call. At this time, all participants are on 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 Walter Pinto, Managing Director at KCSA Strategic Communications. Sir, the floor is yours.

Good afternoon, everyone. Thank you for joining. On the call with us today are James McCormick, Chief Executive Officer, and Greg Smitherman, Chief Financial Officer. Earlier today, the company issued a press release announcing its operating results for the three-month end in March 31, 2026. The release is available on our website at cloudastructure.com. Our form 10-Q can also be found on our website and at sec.gov. Before I turn the call over to management to review the company's operating results and provide a business update, I want to remind everyone that today's call may include forward-looking statements within the meaning of the Private Security Litigation Reform Act of 1995. These statements include statements regarding our expected business performance, strategy, market opportunities, customer demand, deployment activity, recurring revenue, operating results, liquidity, and growth plans. forward-looking statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these statements. Important factors that could cause actual results to differ materially are described in today's earnings release and in the company's filings with the SEC, including the risk factors discussed in our most recent annual report on Form 10-K and subsequent filings. overlooking statements made on this call speak only as of today, and the company undertakes no obligation to update them as required by law, except as required by law. We may also discuss non-GAAP financial measures on today's call. Reconciliations to the most directly comparable GAAP measures, where applicable, are included in today's earnings release and related materials are available on our investor relations website. I'd now like to turn the call over to James McCormick, Chief Executive Officer. James?

Well, thank you, Walter, and thank you to all of us for joining us today. Before we get into the numbers, I want to take a moment to speak directly to something that's been on a lot of your minds and certainly ours. As part of preparing this quarter's filing, we identified a technical accounting classification issue related to how our Series 1 and Series 2 preferred stock were presented on the balance sheet. This was solely related to a classification matter on our balance sheet, not a change in our cash operations or assets. And Greg Smitherman will walk through the specifics in a few minutes. We have since taken action to resolve the underlying issue with the source, amending the terms of our series two preferred stock so that this is avoided going forward. I want to thank our shareholders for your patience and continued confidence in cloudastructure while we worked through this, and I am very glad to put it behind us. We remain focused, continuing to execute against our business plan. So let's turn to our first quarter financial results. Q1 was another strong quarter. as we continue to execute on our strategy and build momentum across the business. We made meaningful progress expanding our customer base, deepening existing relationships and scaling our AI driven security platform across multiple markets. We are seeing increasing demand for proactive AI powered security solutions and our platform continues to resonate with customers who are looking for measurable outcomes and real time deterrence. Importantly, as I have mentioned many times, this is a platform proving effective across many verticals already, including multifamily housing, logistics, commercial and infrastructure environments. reinforcing the true strength and scalability of our model. Revenue for the quarter was approximately $1.3 million, representing 78% year-over-year growth, while Q4 2025 was an exceptionally strong quarter, driven by a high level of year-end deployments. As we moved into Q1, we saw expected seasonality, where customers establish budgets and plan deployments for the remainder of the year. This has historically resulted in our revenue activity building throughout the second half of the year. Based on our current pipeline and customer engagement, we are planning for activity to build as we move through 2026. Demand remains strong. supported by both new customer wins and expansion within existing accounts. At the same time, we continue to see increasing contribution from recurring subscription and remote guarding revenue, which builds as deployment scale. You can see the demand most clearly in multifamily, which continues to be one of our strongest verticals. We recently recently reached an important milestone, now serving eight of the ten largest multifamily property managers in the United States. And these are large, sophisticated operators, and their adoption reflects the value our platform delivers in real world environments. Customers typically begin with a limited deployment and expand after validating results. In several recent cases, customers have expanded from a handful of properties to broader portfolio rollouts with additional sites under evaluation. This pattern reinforces the strength of our land and expand model, where demonstrated customer results drive broader adoption across portfolios. We are also making meaningful progress in the transportation and logistics vertical with significant and measurable security challenges. As an example, at just one commercial truck parking facility, the customer reported zero cargo theft incidents over a three-month period following deployment of our platform which we estimate prevented over $6 million of stolen goods based on information provided by the customer. During that time, the system deterred numerous unauthorized access attempts and helped identify and resolve operational issues in real time. That performance led to a master service agreement and expansion across additional locations. This is a strong example of how our platform can move beyond surveillance support, improved operational and financial results. In this vertical, we are also introducing additional AI-driven capabilities tailored to logistics environments, further expanding the value proposition. We also recently signed a master services agreement with a national retail REIT to deploy our platform across open-air shopping centers in California, marking our first large-scale entry into the retail vertical. The initial deployment covers three properties with the MSA structure establishing a framework for potential expansion across as many as 36 shopping centers. This reflects the same pattern we're seeing elsewhere. Once a large operator validates the platform, the MSA structure lets them scale it across a broader portfolio without renegotiating terms property by property. Our cloud-based architecture also means far less capital investment is required to deploy at scale, making it easier for large operators to commit across a broad portfolio rather than commit property by property. More broadly, these examples highlight how flexible our platform is across very different environments and use cases. That flexibility is something we continue to build on as we expand how and where the platform can be deployed. During the quarter, we advanced deployments of our AI-powered security enclosure, including multi-site rollouts for a national construction customer. We also extended solar-powered deployments, enabling security coverage in off-grid and infrastructure-limited environments. These capabilities allow us to serve a broader range of use cases, including construction, infrastructure and remote sites. At the same time, we continue to evolve our platform with mobile and autonomous capabilities, further increasing flexibility and scalability. The key takeaway. is that our strategy is centered on the platform, not a single hardware configuration. And this allows us to integrate into diverse environments and expand alongside our customer needs over time. And as we scale, we are also strengthening our leadership team. We recently welcomed Ed Burnett, as our Chief Security and Operations Officer. Excuse me. Ed brings more than 30 years of enterprise security experience, including over two decades at UPS leading large-scale security and fraud investigations. His experience is highly relevant to the markets we are expanding into. particularly logistics and enterprise environments. In this role, he will lead hardware development and production, remote guarding and deployments while contributing to product development and strategic growth initiatives. Alongside Ed, we also grew our direct sales organization by more than 30%, adding capacity across lead development, Solution Design, and Customer Success. This investment supports our land and expand strategy and positions us to convert a growing pipeline across multifamily, logistics, transportation, and now retail. We believe these additions strengthen our ability to combine advanced AI technology with real-world operational expertise. Across our markets, customers are shifting towards proactive security models that focus on prevention rather than response. They are looking to reduce incidents, lower costs, and improve visibility across their operation. Our platform addresses these needs through AI-powered detection Cloud-based architecture, and real-time intervention. Whether in multifamily, logistics, or infrastructure, the value proposition remains consistent. Detect threats early, respond in real-time, and prevent incidents before they escalate. So overall, Q1 reflects continued momentum across the business. We are expanding within core markets, gaining traction in new verticals, extending our platform capabilities and strengthening our leadership team. We remain focused on execution and scaling the platform as demand for AI driven security continues to grow. And with that, I'll turn the call over to Greg Smitherman to walk through the financials.