Genasys Inc.

Welcome, everyone, and thank you for joining today's Genesis Inc. Fiscal First Quarter 2026 Conference Call. As a reminder, all phone lines are in a muted or listen-only mode to reduce background noise. Later, you will have the opportunity to ask questions during our question and answer session. To signal for a question, simply press star and 1 on your telephone keypad. A reminder, today's session is being recorded. It is now my pleasure to turn the floor over to External Investor Relations Representative, Mr. Clay Lyolas. Welcome, sir.

Good afternoon, everyone. Thank you for participating in today's conference call to discuss Genesis Inc.' 's fiscal first quarter 2026 results ended December 31st, 2025. Joining us on today's call are the company's Chief Executive Officer, Richard Danforth, and Chief Financial Officer, Cassandra Montihan. Before we begin, let me remind everyone of the company's safe harbor disclaimer. Certain portions of our comments today will concern future expectations, plans, and prospects of the company that constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements containing verbs such as aims, anticipates, estimates, expects, believes, intends, plans, predicts, will, may, continue, projects, or targets, and negatives of these words and similar words or expressions. Forward-looking statements are subject to certain risk and uncertainties that could cause actual results to differ materially from those indicated by the forward-looking statements. Factors that could affect our actual results include, among others, those that are discussed under the heading risk factors in our most recent filed reports with the SEC, including our annual report on Form 10-K, our quarterly reports on Form 10-Q, and our current reports on Form 8-K. In addition, this call includes discussions of certain non-GAAP financial measures, including adjusted EBITDA. The most directly comparable GAAP measures and reconciliations for non-GAAP measures are available in the earnings release and other documents posted to the company's website under investor relations. A replay of the webcast will be available approximately four hours after the presentation through the conference call link on the events and presentations page of the company's website. With that, I would now like to turn the call over to Genesis' CEO, Richard Danforth.

Thank you, Clay, and welcome, everyone. In the first quarter of fiscal 2026, we built on the strong foundation laid in the back half of fiscal year 2025. We delivered a record quarterly revenue of $17.1 million and executed several key initiatives. The first of these was the appointment of Cassandra Montillon as our full-time chief financial officer. Cassandra brings eight years of experience at Genesis, having most recently served as interim CFO. Before that, as vice president of finance, Cassandra strengthens our financial operations, advances strategic initiatives, and helped navigate the company through significant growth and transformation. Her comprehensive understanding of our business, consistent leadership, and dedication to excellence makes her an ideal fit for this position. We're confident she'll continue to provide strong financial stewardship while supporting our long-term vision. Congratulations, Cassandra. Another significant milestone was the full repayment of our $4 million term loan, which we completed while still maintaining a strong cash position of $10.3 million at the end of the quarter. This action aligns with the objectives we previously communicated and marks meaningful progress in improving our balance sheet and financial flexibility. Now for an update on our hardware business and the significant momentum we're experiencing. Our LRAD systems continue to gain substantial traction both domestically and internationally, with growing demand across multiple regions and applications. On the international front, we are seeing increased interest and expanded demand to build across the Middle Eastern and Asian markets throughout the year. The versatility of our LRADs has attracted attention across diverse use cases, from crowd management and public safety to border security and critical infrastructure protection. Recent real-world deployments have generated valuable third-party validation. News coverage of our products performing exactly as intended, such as in Minnesota, where LRADs were used to safely disperse crowds while simultaneously providing clear communication to inform people of the situation. This organic media exposure has been instrumental in accelerating awareness and driving qualified interest from potential customers worldwide. Our LRAD products are designed with a clear mission. to save lives and keep people safe through effective long-range communication. These systems provide authorities with the tool to de-escalate potentially dangerous situations, deliver critical emergency information across vast distances, and maintain public safety without resorting to physical force. Moving to software, interest in our solutions is expanding, supported by engagements across municipalities, states, and government entities. In Q2, we are in contracting with five cities slash counties and two federal agencies. Sequentially, our software revenue increased 5% and our pipeline continues to expand as more prospects recognize our software platform as the leading solution in terms of safety and technical superiority. While government budget cycles and funding timelines have created some near-term conversion challenges, we remain confident in the trajectory. As these constraints become resolved in the coming months, we expect this momentum to accelerate. We view software as a critical growth vertical and a cornerstone of Genesys' future. Now turning to some of our key projects. In the first quarter of fiscal 2026, we recognized $9.8 million in revenue from Puerto Rico. The project continues to display strong engagement across all stakeholders, with the first two dam groups completed. The third group, which is the largest, with 10 dams, 50 speaker arrays, and over 100 sensors, is currently under construction with all the equipment on site in Puerto Rico. Following the receipt of a multi-million dollar deposit, site surveys and engineering designs have begun for the fourth group. of eight dams located in the mountainous west central interior. The project remains on track for 2027 completion. Now turning to the CROWS initiative. As a reminder, in late September, we announced a $9 million production order representing the first contract for the tech refresh effort under the CROWS AHD program. This milestone followed the successful 2024 qualification of our LRAD 450XLRT model for integration with the common remotely operated weapon station system. The broader program presents significant multi-year revenue potential for Genesis. With roughly 5,000 CROWS units in need of this technological refit and solutions priced around $35,000, The total addressable market for this program exceeds $175 million. As additional production orders are awarded, this program is positioned to become a substantial revenue stream for the company over the coming years. We continue to expect initial revenue contribution from Crow's AHD program in the second half of this fiscal year. Before passing it to Cassandra, I want to briefly touch on our backlog and pipeline. Our 12-month backlog at the end of fiscal Q1 was $58 million. Regarding our pipeline, it has never been stronger. As more people become aware of our company and recognize the real value that our products deliver, we're seeing steady pipeline growth. We continue to actively pursue several large-scale projects and remain engaged in the bidding process for these contracts. We're optimistic about the quality and the breadth of opportunities ahead of us and believe we're well positioned to capitalize them as they develop. Now I'd like to pass the call over to Cassandra for an update on the first quarter financial performance. Cassandra?