Staffing 360 Solutions, Inc.

Good day and welcome to the Staffing 360 Solutions Q2 Results Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Terry McGinnis, VP of IR at Biblicoff and McGinnis. Please go ahead. Thank you, Operator. Greetings to all and welcome to the Staffing 360 Solutions Fiscal Q2 Results Conference Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation in which management will answer questions previously submitted via email. As a reminder, this call is being recorded. This conference call will contain forward-looking statements within the meaning of the U.S. Federal Securities Laws concerning Staffing 360 Solutions, Inc. The forward-looking statements are subject to a number of significant risks and uncertainties and actual results may differ materially. Please refer to the company's filings with the SEC, which contain and identify important risks and other factors that may cause the company's actual results to differ from those contained in our forward-looking statements. All forward-looking statements are made as of today, August 24, 2022, and Staffing 360 Solutions expressly disclaims any obligation to revise or to update any forward-looking statement after the date of this conference call. During these prepared remarks, the company may make reference to certain non-GAAP measures, such as adjusted EBITDA. Where applicable, we have provided reconciliations of these non-GAAP measures to the most directly comparable GAAP measure. It is now my pleasure to introduce Brendan Flood, Chairman, President, and Chief Executive Officer of Staffing 360 Solutions. Brendan, please begin.

Thank you, Terry. And welcome to everyone who has joined our call. I'm joined today by Alicia Barker, our Chief Operating Officer, who will give us an update on progress with the acquisition made in mid-May, Headway Workforce Solutions, Inc. I will begin with a high-level summary overview of our Q2 and year-to-date financial results. More details are available in the news release and form 10Q published yesterday. Then I will hand the call over to Alicia, after which I will give an update on trading and answer some questions that have arrived by email. There are various moving parts in these results, not least of which are the inclusion of headway for six weeks and the material impact of the movement in the exchange rate between the US dollar and the pound sterling which has adversely impacted the translation of the results of our UK business into the group consolidation. As mentioned from time to time, almost all of our invoicing and our operating expense payments in the UK are in local currency, so these impacts are non-cash translation impacts rather than transactional in any material way. The further down the P&L account we look, the lesser the impact, to the point where, at an adjusted EBITDA level,

the impact was a reduction of $54,000 related to this currency translation.