Defi Technologies, Inc.

Hello everyone and welcome. I'll give some folks about 30 seconds here to filter in and then we'll get started. In the meantime, I'll just go ahead and do the opening remarks and read the disclaimer. Everyone, welcome to the DeFi Technologies first quarter. 2026 Financial Review and Shareholder Call. I'm Curtis Lossman, VP of Marketing and Communications. Joining me on the call today are Chief Executive Officer Johan Wattenstrom, Chief Financial Officer Paul Bozoki, and President Andrew Forsen. We'll begin with opening remarks from Johan, followed by a review of our first quarter 2026 financial results from Paul, and then an update on growth initiatives and strategic priorities from Andrew. After that, we'll open the line for Q&A. For investors, you can answer questions in the chat. I'll get those to those throughout the presentation, and then I'll answer some of those live, and then we'll bring on our coverage analysts on to ask questions live. Before we begin, I'd like to remind everyone that certain statements made during today's call may constitute forward-looking information under applicable securities laws. These statements include but are not limited to comments regarding expected financial performance, business development, strategic initiatives, market expansion, product growth, and future opportunities. Forward-looking statements are based on management's current expectations and assumptions and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied. With that, I'll turn it over to Johan.

Thank you, Curtis, and thank you, everyone, for joining us today. The first quarter of 2026 reflected a more challenging market environment across the digital asset sector, with softer market conditions impacting assets under management, staking related income, and overall investor activity during the period. At the same time, we believe the quarter reinforced the strength and durability of the business we have built. Even what we view as the most challenging quarter of this recent crypto market downturn, with enterprises reaching their lowest during the period, Deepak Technologies generated revenue of $11.2 million and positive net income of $4.9 million, while further strengthening the balance sheet through a significant improvement in working capital. More broadly, the quarter demonstrated the resilience of our business model and the discipline of our operating approach. We navigated a difficult market environment while continuing to manage costs carefully, support a product platform, and advance several important long-term growth initiatives. Average AUM during the quarter was approximately $533 million, with through levels through the period reaching approximately $427 million. While lower than prior periods, these levels were broadly consistent with market conditions and visible through our publicly reported AUM disclosures. Importantly, our model continues to demonstrate durability even during weaker market conditions. Our management fee profile remained relatively stable, and our diversified monetization approach across management fees, staking activities and trading infrastructure and institutional initiatives continue to differentiate the platform. Across the business, we have demonstrated that DFAC Technologies is not reliant on any single product, revenue stream or market environment. Our platform continues to benefit from multiple pathways for growth across asset management, trading and capital market infrastructure, and we believe the company has never been better positioned to capitalize on the convergence of decentralized finance and traditional capital markets. At the center of the group remains Valor. Today, the platform includes 103 listed products across multiple exchanges globally. We continue to believe the breadth of the platform combined with our ability to monetize AUM across multiple activities differentiates us in the market. We also strengthened our commercial leadership during the quarter with the appointment of Jakob Lindberg as Chief Revenue Officer. Jakob is focused on expanding distribution, deepening institutional relationships and accelerating revenue opportunities across our product platform. We believe this addition strengthens our ability to scale institutional engagement globally. In addition, we continue to evolve our institutional product initiatives, including our usage platform efforts, our hedge fund efforts, which we believe represent an important long-term opportunity to broaden access to regulated digital assets investment products across global fund platforms and institutional allocators. As we move through 2026, we remain focused on expanding institutional product structures and other regulated vehicles. while continuing to invest in the products and rails that support the future of digital assets investing. We also continue to see opportunities to increase monetization across the platform, particularly through the trading, hedging, and market-making infrastructure embedded across Valor's issuance stack, which supports our ability to earn additional income on AUM more efficiently. From a financial standpoint, we ended the quarter with more than $103 million in combined cash and USDT, USDC, approximately $23.5 million in treasury holdings, and a venture and private portfolio valued at $29.1 million. For total cash, treasury and venture portfolio value of approximately $156 million. We also ended the quarter with positive working capital of 47.3 million, a significant improvement from year end 2025. That fortress balance sheet gives us the ability to be proactive rather than reactionary, and to deploy capital deliberately into growth initiatives, strategic infrastructure, and potential acquisitions that deepens our capabilities and strengthens long-term earnings power. Overall, while Q1 was a soft recorder from a market standpoint, we believe the distance remains well positioned operationally and financially, with strong cost discipline, a resilient platform and multiple long-term growth initiatives underway. We are increasingly encouraged by improving market conditions as we move through 2026, which we believe would create a more favourable backdrop for the AEM growth, stronger ETP demand and revenue acceleration through the remainder of the year. We are already beginning to see early signs of that in the business with AUM now above $530 million and April 2026 net inflows of $14.6 million, representing the second strongest monthly inflow in the last 12 months after September 2025 inflows of $22.6 million, following a Q1 period in which flows were relatively flat. With a proven business model, expanding monetization, and the financial flexibility to operate from professional strength, we believe DeFi Technologies is exceptionally well positioned for the quarters ahead. With that, I'll turn it over to Paul to walk through the financial results.

Thank you, Johan, and good morning, everyone. I'll begin with an overview of assets under management. Average AUM for the period was approximately $533 million. At the low point during the quarter, AUM was $427 million. While market conditions were challenging, these levels remained within a manageable range for the business and were consistent with the market environment investors experienced across the broader digital asset sector. Our effective management fee yield was approximately 1% for the quarter, compared to approximately 1.2% in prior periods, primarily due to the larger relative weighting of Bitcoin-related products, which carried lower or no management fees. following the sharp decline in altcoin prices. Within Valor, our effective staking yield declined to 2.5% due to the significant price declines in the altcoins, which pay higher effective yields to Bitcoin. Compression in Bitcoin and Ethereum lending rates, combined with lower effective staking of the AUM given substantial market volatility, and the unstaked during Q1 of previously locked Solana coins that became unlocked and distributed from our equity investments directly to Valora on April 3rd. Notwithstanding the lower monetization of 3.5% of our AUM, total revenues for Q1 came in at $11.2 million, which is greater than $9.7 million in operating general expenses and fees and commissions, our primary cash costs, reflecting the cost display through the challenging crypto market conditions of Q1. The company continued to maintain its balance sheet strength with $87.6 million in cash and $13.1 million of USDT-USDC for a total of $100.7 million of cash in USDT-USDC on hand at March 31, 2026. Turning to product activity, we ended the quarter with 102 ETPs and structured products across our platform. During the period, we continued expanding our higher value offerings, including the leveraged bull and bear ETPs introduced in late 2025. We also continued expanding geographic distribution through cross-listings in markets such as London and Brazil. In terms of ETP flows, they remained relatively resilient during the quarter, with a small 0.7 million outflow given the challenging cryptocurrency price environment, which saw Bitcoin reach a low of $60,000 per token. Stillman Digital continued to perform well during the quarter and remains an important diversification component of our broader platform. Stillman generated approximately $2.9 million in revenue during the quarter, an increase in 38% from Q1 2020 with an actual revenue of $2.1 million, and is thus far on track to meet or exceed its planned 15% to 20% year-over-year growth. Turning to operating expenses, Our Q1 actual operating general and mid expenses and fees and commissions came in at $9.7 million, which on an annualized basis is $38.7 million, or slightly in excess of the $36 million target we set for ourselves. Management will continue to strive to keep core operating costs at levels that maintain cash-positive core operations. Based on our current cost structure and monetization profile, we continue to believe the business remains positioned to achieve profitability during fiscal year 2026. With that, I'll turn it over to Andrew.