Digi Power X Inc.

Good morning and welcome to DigiPowerX Inc.'s second quarter 2026 financial results conference call. Please note that this event is being recorded and a transcript will be available on DigiPowerX Inc.'s website. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. Unless noted otherwise, all amounts referred to during the call are denominated in U.S. dollars. Certain comments made during this call may include forward-looking statements or forward-looking information within the meaning of applicable U.S. and Canadian security laws. Such statements and information reflect current expectations and as such are expected to a variety of risks and uncertainties that could cause actual results to differ materially from current expectations. Those risks and uncertainties include but are not limited to factors discussed in DigiPowerX Inc.'s report on Form 10Q, for the three and six months ended June 30, 2026, and the annual report for the year ended December 31, 2025, as well as the company's other disclosure documents. Except to the extent required by applicable law, DigiPower X undertakes no obligation to publicly update or review any forward-looking statements or information. During the call, management may make reference to certain non-GAAP financial measures that are not separately defined under GAAP, Such as EBITDA and Adjusted EBITDA. Management believes that those non-GAAP measures, when considered in conjunction with GAAP financial measures, provide useful information for both management and investors. Reconciliations between GAAP and non-GAAP measures are presented in the tables accompanying the press release highlighting DigiPower X financial results as of the quarter ended June 30, 2026. Good morning, everyone.

and thank you for joining us today as we share our results for the second quarter of 2026 for DigiPowerX. I'll start with the highlight of the second quarter, three months ended June 30, 2026. Revenues of 6.6 million, reflecting the planned wind down of legacy operation as the company transitioned to AI, compute and colocation revenue. GPU revenue recognized for $1.1 million, representing the company's first GPU bare metal rental initial fleet of B200 and B300 GPUs deployed at the Columbiana, Alabama facility. And it was started a little bit third week of May to the end of June. It's about five weeks of income. Positive adjusted EBITDA of $3.3 million, an increase of $3.2 million compared to last year, Q2 2025. If you add all the depreciation and the non-cash related items, it brings us to a net loss of $14.4 million for the quarter. Balance sheet and liquidity as of June 30, 2026. Cash and cash equivalents of $142.4 million versus last year, $1.7 million. Working capital of $131 million, representing a $139 year-over-year increase from June 30, 2025. Basically, we had no working capital a year ago. Digital assets holding of $14.3 million. Net fixed assets and equipment deposits for the buildup of the data center in Colombiana, $127.5 million, an increase of 447% year over year, reflecting capitalized investment at the Colombiana Alabama facility.

No long-term debt. Total assets of $279 million versus $37 million a year ago. Balance sheet and liquidity as of today. The company's cash and cash equivalence position is approximately $150 million today.