MindWalk Holdings Corp.

2.7 million, and an increase to 65% growth margin for continuing operations. Across pharma and biotech, AI now sits near the center of pipeline strategy and R&D planning. Recent surveys show AI in active use at scale with roughly two-thirds of life science professionals using AI in 2024, up from just over half the prior year, and a large data volumes continue to accelerate. Global data creation is estimated at roughly 180 zettabytes in 2025, with genomics among the fastest growing contributors and genomics data capacity already measured in tens of exabytes. Data generation now runs ahead of the world's ability to extract stable biological signals and convert them into actionable decisions. Investments reflect this shift. Independent market analyses point to sustained double-digit annual growth for AI-enabled R&D platforms, including AI-driven drug discovery, informatics software, cloud-based infrastructure, and life science analytics. Large pharma, major technology firms, and specialized platforms are all expanding AI capacity. Once an organization secures an advantage in data quality, model design, and biological grounding, that advantage compounds. Those that fall too far behind risk structural disadvantages in cost, speed, and technical success that are difficult to overcome. Only a limited number of platforms are likely to secure durable leadership. MindWalk was built deliberately for this environment, and we believe it is positioned within that small group. Our starting point is bio-native AI, which respects how biology encodes information. Evolution introduces mutations across genomes. Many positions in a sequence tolerate change. That degeneracy creates the diversity and code complexity that fills public databases and drives the large data volumes that others train on. A smaller subset of sub-sequences remains immutable over evolutionary time because essential biochemical functions depend on those anchor points. HIFT patterns are our patented representation of these immutable sub-sequence codes, or molecular fingerprints. In lens AI, HIFT patterns are the units of biological meaning. They are the immutable sub-sequences, discontinuous in the primary sequence, that link sequence to structure and function and create a stable informational layer that remains while the surrounding sequence drips. Those encoded patterns are linked across more than 25 billion biological relations. That subsequence layer allows Lens AI to harmonize sequence, structure, omics, and literature into a single computational space. Conventional sequence and language models operate on full strings and tokens without a dedicated representation for these subsequence codes. HIFT keeps computation focused on the conserved patterns that carry the information for life, rather than on the tolerated variation around them. These patterns are patented assets owned by Mindwalk, and no other company has the rights to use these patterns. This patented pattern layer is a core strategic asset that differentiates Mindwalk from other AI approaches in biologics. The same logic guides how we look at infectious organisms. Instead of starting from historical antigen lists or broad sequence homology, Lens AI scans pathogen proteomes for strict HIFT patterns with specific biochemical properties, unique or highly enriched for a given organism. conserved across relevant strains or serotypes, and suitable for intervention based on structure and context. This gives us a starting point grounded in pattern-level evidence, rather than legacy assumptions about which viral proteins should matter. This view of biology also drives our strategy. Over the past year, we aligned the company with this bionative AI thesis. On this call, I will focus on how second quarter performance fits into this strategic frame. We divested non-core wet lab operations in the Netherlands, which did not integrate tightly with Lens AI or the HIFT layer. This transaction generated approximately $14.3 million in net proceeds, strengthened our balance sheet, and removed a capital intensive footprint that did not advance our bio-native AI direction. We brought immunoprecise antibodies, Biostrand, and Tolum under a single identity as Mindwalk, with HIFT as our NASDAQ ticker. Our external identity now reflects one integrated architecture centered on software, data, and selected lab capabilities, rather than a collection of regional service operations. Our MD&A describes this in detail. First this quarter, we advanced our GLP-1 and longevity programs. Using Lens AI, our team designed GLP-1 receptor agonists with third-party validated in vitro assay receptor activation above semiglutide. HIFT patterns were used to identify subsequence families, encoding receptor engagement and favorable biophysical properties, rather than iterating on historical GLP-1 analogs. Importantly, Lens AI did not hand us hundreds of undifferentiated HIFTs. The platform applies strict HIFS criteria to identify a single best scoring design, or a clearly defined shortlist, for each objective. That precision allows us to focus experimental resources on candidates where the pattern level evidence is strongest, rather than spending time and capital triaging broad HIFS lists where no clear frontrunner exists. During the quarter, we applied the same pattern-led approach to a second pathway linked to cellular resistance and aspects of aging biology. We used HIFT analysis to define strict HIFT patterns set in this pathway and to evaluate intervention options that align with our safety and development standards. The result is a dual pathway therapeutic concept that targets metabolic control and health span mechanisms in parallel. Current work focuses on IND enablement, including pharmacokinetic and toxicology study design, and preparation for external in vivo collaborations. Second, our dengue vaccine initiative continued to move forward and is a clear example of pathogen-specific HIFT logic. Lens AI previously identified a highly conserved biochemical pattern across all four dengue virus serotypes using strict pattern criteria. The selection did not start from legacy dengue immunogens, nor homology to other flaviviruses. We focused on HIFT pattern sets with biochemical properties unique to dengue, immutable across the serotypes analyzed and distinct from host patterns. The goal is to support neutralizing antibody responses while reducing the risk of serotype bias. During the quarter, we advanced preclinical planning, including assay strategy, manufacturing readiness steps, and collaborator engagement for upcoming immunogenicity and neutralization work. Across both GLP-1 and Dengue programs, our strategy is to build and protect assets with robust IP and then align them with strategic capital partners who can drive them forward at scale. To facilitate this, we are working with Walkers Global to establish a segregated portfolio structure in the Cayman Islands. Under this model, each AI-generated asset will be housed in its own segregated portfolio, so investors can participate directly at the asset level, while MindWalk Holdings Corp. retains control of the platform. This framework allows us to advance multiple programs in parallel with clear governance over risk, capital, and ownership. We believe the depth of opportunity within these HIF-defined assets is substantial. This path creates clear routes to capital through structured partnerships, licensing, and potential non-dilutive funding tied to specific programs, while we remain disciplined in protecting shareholder value and avoiding unnecessary dilution. Third, we expanded validation of Lens AI with partners, including an anti-drug antibody risk assessment. HIFT patterns and concept-driven NLP bring sequence structural features and literature into one view, so teams can see how specific pattern families relate to known immunogenicity concerns. Interest here reflects a broader market need for earlier, explainable risk signals rather than late surprises in development. On the corporate side, we continue to build the leadership required for software-led, bio-native AI business. We appointed Scott Ariglato as Chief Financial Officer. Scott brings experience in technology growth, capital markets, and disciplined planning. His role is to align investment in the platform and internal programs with balanced capital allocation and the flexibility we want for future strategic options. In addition, we appointed Dr. Thomas Lynch as Chief Business Officer. Tom leads global commercialization for Lens AI, including enterprise engagements and data onboarding. His experience with complex technology platforms and large customers supports our focus on SaaS, usage-based compute, and co-development structures. Lastly, we have completed the corporate rebranding to MindWalk and the transition to HIFT NASDAQ Ticker. Our communications, investor materials, and client messaging now aligns with the patented HIF technology, which resides at the heart of our platform. Taken together, these developments reflect a clear position in an AI market that is moving quickly. We are not trying to follow every AI theme. We are focused on building and scaling one bio-native AI architecture, grounded in evolution-shaped subsequence patterns, and protected by our HIFT patents, which supports partner programs and internal assets such as GLP-1 and Dengue. We believe this focus positions Mindwalk within a small group of companies defining how AI transforms life science data analysis and is applied to biologics, supported by a diversified economic engine spanning services and advancing asset portfolio, SaaS offerings, and strategic partnerships. With that context, I will now turn the call over to our CFO, Scott Ariglato, for a review of our financial performance for the quarter.

Thank you, Jennifer, and good morning, everyone. I'm excited to have joined MindLock at this important time in the evolution of our Bionative AI platform. Before I begin, please note that all numbers presented today are in Canadian dollars. For comparability, the financial results I will discuss exclude revenue and expenses associated with the OSE and Utrecht operations that were divested, so you could see a true like-for-like view of our continuing business. Revenue for the second quarter was $4.1 million, an increase of 54% year-over-year and 30% sequentially, driven primarily by improved project revenue and better utilization. This represents record quarterly revenue for the company from our continuing operations. Gross profit for the quarter was $2.7 million, representing a 65% gross margin compared to $1.4 million or a 51% margin in the same period last year. A 94% year over year increase in gross profit and 1400 basis point expansion in margin were driven primarily by increased operating leverage on fixed costs and cost of sales and a mix of higher margin work. operating expenses for the quarter were $5.4 million, up slightly from the same period last year. The increase reflects higher R&D investment, modest growth in sales and marketing activity, and ongoing expansion of our general and administrative infrastructure to support scaling. These increases were partially offset by approximately $500,000 of amortization expense recorded in the prior year, but not in this quarter. Consistent with our strategy, we expect operating expenses to remain focused on advancing our platform, strengthening commercial capabilities, and supporting long-term growth drivers. Operating loss, excluding amortization and non-recurring items, improved to $2.8 million compared to $4.1 million last year. Adjusted EBITDA loss improved to $2.4 million versus $2.6 million in the prior year period. Pre-tax loss for the second quarter was $3.2 million compared to $4.3 million last year. This loss includes a non-cash charge of $0.5 million related to the divestiture of our Netherlands facilities. Net loss from continuing operations was $3.2 million versus $2.6 million in the same period last year, driven by the divestiture-related impact and $24,000 tax expense compared to a $994,000 tax credit in the prior year period. Turning to the balance sheet. We ended the quarter with $16.5 million in cash, which includes proceeds from the divestiture completed during the quarter. This strength in liquidity position provides meaningful flexibility to execute our strategy. Expanding the HIF-powered platform, investing in our infrastructure, and developing assets such as our GLP-1 and dengue vaccine initiatives. In summary, we delivered strong revenue growth, expanded margins, and improved underlying operating performance while significantly bolstering our balance sheet. We are executing with discipline and continuing to invest where it matters most for long-term value creation. I'll now turn the call back to the operator for Q&A.

Thank you. We will now open the call for questions. In order to ask a question, simply press star, then the number one on your telephone keypad. To withdraw your question, press star one again. We'll pause for just a moment to compile the Q&A roster. Our first question will come from the line of Aswam Pakula-Ramakant with HC Wainwright. Please go ahead.