Upexi, Inc.

Good day and welcome to the UPEXI Inc. Fiscal Third Quarter 2026 Financial Results Conference Call. Please note this event is being recorded. I would now like to turn the conference over to Valter Pinto, Managing Director at KCSA Strategic Communications. Please go ahead.

Thank you, operator. Good evening, and welcome, everyone, to the UPACC Fiscal Third Quarter 2026 Financial Results Conference Call. I'm joined today by Alan Marshall, Chief Executive Officer, Andrew Nordstrom, Chief Financial Officer, and Brian Ruddick, Chief Strategy Officer. Before we begin, I'm going to remind everyone the statements made during today's conference call may be deemed forward-looking statements within the meaning of the safe harbor of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially due to a variety of risks, uncertainties, and other factors. For a detailed discussion of some of the ongoing risks and uncertainties in the company's business, I'll refer you to the press release issued this evening and filed with the SEC on Form 8K, as well as the company's reports filed periodically with the SEC. The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, unless otherwise required by law. In addition, during the course of the call, we may refer to non-GAAP financial measures that are not prepared in accordance with the accounting principle generally accepted in the United States. And they may be different from non-GAAP financial measures used by other companies. The reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures are contained in our earnings release issue this evening, unless otherwise noted. I'd now like to turn the call over to UPACC's CEO, Alan Marshall.

Thank you, Walter, and welcome everyone to our fiscal third quarter 2026 earnings conference call. I'm happy to review our quarterly results and discuss why we're particularly optimistic about the future. Our fiscal third quarter was characterized by a challenging environment, most notably a continued decline in both the price of Solana and industry multiples. Both had a direct impact on our stock and were the result of a general bear market in crypto. That said, SOL has rebounded from its intra-quarter low of approximately 77 to current 96, and our multiple is also well off the lows and is now sitting above NAV and our fully loaded measure. Brian will cover our thoughts on the downturn and why we believe prices and valuations can and will improve in the future. And while we, like any treasury company, are heavily impacted by token prices and valuation multiples, we are not simply waiting around for the environment to improve, but rather are taking a proactive approach with several efforts afoot. One key initiative, which will always be a core component to the company, is intelligent capital issuance. Like peers, we generally trade it at a discounted NAV during the quarter. We took advantage by buying back approximately 2.5 million common shares for roughly $2 million, or $0.80 per share. As a reminder, buying shares below one times NAV increases our Solana per share. In addition to the buybacks, we remained active on the issuance front. issuing a $36 million in-kind convertible note in January, which materially reduced credit risk given the in-kind nature and will also increase our Solana per share should the notes convert given a conversion price above NAV at the time of the issuance. Lastly, we completed an approximately $7 million equity plus warrants offering, which was done above NAV and also increased our Solana per share. Despite the difficult environment, we demonstrated an ability to utilize the capital markets to create value with both buybacks and issuances. The second key initiative during the quarter was an intense focus on expenses, including both treasury-related and for our brand's business. On the treasury side, expenses have been elevated since the launch of our treasury due to initializing the strategy, but will now normalize going forward. On our brand business, we moved from in-house operations, including manufacturing, warehouse, and logistics, to outsourced operation with third-party providers. Importantly, our costs are now right-sized and are more closely tied to the revenue generated. All in, and assuming a continued 6% to 7% staking yield, we would expect that by July 1st, the ongoing cash expenses for operations and interest will be less than the Treasury staking revenue. And our goal is to have the lowest expense base of Solana Treasury Company peers. The last key initiative during the quarter was yield generation, where we aimed to increase the native 7% Solana staking yield in a low risk and recurring manner. We continue to examine traditional sources of yield and are working towards a strategy that is successful with material increase the total yield earned on the treasury. We believe the market would pay for the additional yield earned beyond the native staking yield. If the yield is low risk and recurring, And if we are correct and successful, this would be accretive to our multiple, potentially giving us a sustained premium valuation that we can monetize and perhaps even perpetually enabling the digital asset treasury company capital markets flywheel. With that, I'd like to turn the call over to our Chief Strategy Officer, Brian Ruddick.