MindWalk Holdings Corp.

Hello everyone, thank you for joining us and welcome to MindWalk Reports financial results and recent business highlights for first quarter fiscal year 2027. After today's prepared remarks, we will host a question and answer session. I will now hand the conference over to Dr. Jennifer Bath, President and Chief Executive Officer of MindWalk Holdings. Dr. Bath, please go ahead. Before we begin, I would like to remind listeners that today's discussion contains forward-looking statements. These statements reflect management's current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated, A fuller description of these risks appears in the company's annual report on Form 20F and other filings are available on SADAR Plus and EDGAR. All financial figures discussed during this call are Canadian dollars. Financial statements and MD&A are available on the company's website at mindwalkai.com as well as sec.gov and SADAR Plus. following its conclusion today. I will now turn the call over to Dr. Jennifer Bath, President and Chief Executive Officer of MindWalk Holdings. Please go ahead, Dr. Bath.

Thank you very much. Good afternoon. In this first quarter of fiscal year 2027, MindWalk advanced toward our goal of becoming the leading bio-native AI drug discovery and development company. In June, we launched ReefIQ, our proprietary data platform, and our focus is now on enterprise adoption. For those newer to the Mindwalk story, ReefIQ is the substrate layer between complex, unstructured biological data and AI models. It turns that data into structured, biologically meaningful representations. So AI models deliver deeper, more actionable insights for our pharmaceutical partners. ReefIQ's commercial model is built around multi-year recurring revenue relationships that can scale as clients expand their use of the platform. Because ReefIQ is integrated directly into a client's biological data and the discovery workflows, these relationships are designed to deepen over time. As a trusted partner to many of the world's largest pharmaceutical companies, we know how drug discovery works inside these organizations and what they need from a platform like ReefIQ. Those relationships give us a real advantage as we drive adoption. We have made good progress. We are engaged with multiple large pharmaceutical companies around potential enterprise deployments of ReefIQ. These discussions vary in maturity, and we are encouraged by how the platform is resonating with our clients. We are not yet in a position to announce specific partners or discuss contract values, but the level of engagement reinforces our conviction of the commercial opportunity. We look forward to providing additional updates as these discussions progress. These opportunities are substantially larger than our historical Lens AI recurring revenue agreements. Investors should not use prior Lens AI contracts as a benchmark for the size or the scope of Reef IQ enterprise relationships. We have built a leading wet lab discovery franchise. Our clients include 19 of the top 20 global pharmaceutical companies. and every one of those relationships is a potential opening for ReefIQ. Two decades of biologics discovery work for our clients across multiple platforms and capabilities has already contributed to several dozen molecules reaching the clinic. Ten are in active phase one through phase three trials today and four of those are first in class molecules. We are also reshaping how we structure our commercial relationships with our pharmaceutical partners. Increasingly, new engagements are being structured as broader platform partnerships where Mindwalk participates in the economics of the assets we help create, rather than simply being paid for discrete projects. This structure aligns our incentives with our partners, has been well received by our clients, and is contributing to increased activity across our commercial funnel. Today, roughly 80% of our current funnel by value is now structured this way, spanning data management, ReefIQ and multi-target discovery. We also reached a clear infrastructure milestone with our engineering partner, AMD and Vulture We validated a production deployment of OpenFold 3 on AMD Instinct MI325X GPUs, and the first of those results are being published this week. OpenFold 3 is open source, and any drug discovery team can use it, which is exactly the point. Models commoditize. The layer they run on compounds. Every model run on Reef IQ enriches the biological context for every other program. and Lens AI, our reasoning layer is deliberately model neutral. So a client can bring their own model, any open source one or any third party and still reason over that same context layer. The compute win simply gives us more room to run discovery and scale ReefIQ. This is a marquee week for that partnership with much more to come. Our internal pipeline continues to advance through preclinical development and we remain excited about the opportunity to drive value in this part of our business. Timelines there are hard to forecast, so we advance multiple programs in parallel and prioritize resources based on the strengths of the data. This quarter, we added experienced leaders to accelerate our IND enabling work and move our best programs toward IND filings and the clinic. We will update the market as they hit scientific regulatory and development milestones. Finally, our capital position. This morning we announced a binding commitment for a $30 million U.S. dollar in unsecured revolving credit facility at a fixed 7% rate drawn as needed. It gives us financial flexibility without issuing equity, which matters given where our stock trades are all set against how AI-enabled discovery platforms are valued in public and private markets. We do not believe our market capitalization reflects what we have built or the scale of what we are pursuing. That informs how we think about financing the business and makes this facility particularly attractive to us. This is not a response to a step change in our cash needs. Our model is not capital intensive. The facility gives us the flexibility to invest behind ReefIQ, advance our internal pipeline, and pursue opportunities as they develop on terms that we believe are very favorable to MindRock and its shareholders. Our focus is on execution, and we believe sustained delivery will be reflected in the stock over time. Turning to the quarter, revenue grew 21% year over year, and growth margin expanded to 59% from 48%. The larger loss this quarter reflects deliberate investment behind the commercial opportunity we see ahead of us. Sales and marketing expense increased by 1.9 million. We are investing to build a larger and more durable revenue base, not simply support the business we have today. On the bottom line, this quarter is not directly comparable to the same quarter last year, which included income from discontinued operations. With that, I will turn it over to Scott to take you through the numbers.

Thank you, Jennifer, and good afternoon, everyone. I will take you through our first quarter fiscal year 2027 financial results. As a reminder, all figures are in Canadian dollars. Revenue for the first quarter of fiscal year 2027 was $3.8 million versus $3.2 million in the first quarter of fiscal year 2026. This is an improvement of approximately $673,000 or 21%. That represents five quarters of consecutive year-over-year revenue growth. Gross margin was $2.2 million or 59%. For the first quarter of fiscal year 2027 as compared to 1.5 million or 48% for the same quarter last year. Looking at operating expenses. For the quarter ended July 31st, 2026, R&D was 1.3 million compared to 1 million in the same period last year. This increase is due primarily to increase salary costs to support the commercial development of our platform. Sales and marketing expenses were $3.2 million for the first quarter of 2027, as compared to $1.3 million in the first quarter of 2026, which included non-recurring costs incurred in the quarter. As I mentioned in our prior call, these are planned investments in our commercial infrastructure and represent increased headcount to support our commercial initiatives, as well as investments in advertising and promotions. G&A increased to $3.9 million for the quarter ended July 31, 2026, as compared to $3.3 million for the same quarter last year. The increase is due primarily to non-cash stock-based compensation. Net loss and loss from continuing operations was $6.1 million for the first quarter of fiscal year 2027, as compared to net loss from continuing operations of $4.1 million in the first quarter of 2026. Overall net loss in the prior year was $3 million, which included $1.1 million of income from discontinued operations. Turning to the balance sheet, the company ended the quarter with cash balance of $7.6 million as of July 31, 2026. Net cash used in operating activities was $4 million, compared to $4.2 million in the prior year quarter, due in part to non-cash expenses related to share-based payments. Cash was $11.3 million at April 30th. I am also pleased with our announcement earlier today of a binding commitment for a $30 million U.S. Senior Unsecured Revolving Credit Facility. This facility demonstrates confidence in our long-term strategy around our emerging pipeline and anticipated adoption of Reef IQ and provides the capital necessary to execute on that strategy. With that, I will turn the call back to Jennifer. Jennifer? Jennifer?