Cybeats Technologies Corp

Good afternoon, and thank you for joining us for Cybeats Technologies conference call to discuss its financial results for the first quarter ended March 31st, 2026. On the call today, we have myself, Sean Peasgood, Investor Relations, Cybeats Chief Executive Officer, Justin Legere, and Chief Financial Officer, Josh Bald. Justin will begin the call with an update on the quarter, followed by Josh providing a brief overview of the financial highlights, and we'll end the call with Q&A. Today's call is being recorded and you're currently in a listen-only mode. If you have a question, please enter it in the question box at the bottom of the webinar at any time, and we'll ask them at the end of the call. Before I pass the call to management, I'd like to remind everyone that certain statements in this call may be forward-looking in nature. Matters discussed on today's call, including guidance and outlooks for 2026 and beyond, statements involving known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied in our forward-looking statements reflect the company's judgment based on information available at the time of this call. For caveats about forward-looking statements and risk factors, please see our MD&A for the quarter ended March 31st, 2026, which can be found on our company profile at CDAR+. unless otherwise stated all dollar amounts are denominated in Canadian dollars. With that out of the way, I'd like to pass the call over to Chief Executive Officer, Justin Legere.

Thanks, Sean. Good afternoon, everyone, and thanks for joining the call. I'm Justin, CEO of Cybeats. We held our first earnings call a little over one month ago, where we provided a detailed overview of our products, our business, the industry dynamics driving our growth, and we discussed fiscal year 2025 in depth. If you missed that call and want a more fulsome overview of Cybeats, I invite you to listen to that recording on our website at cybeats.com forward slash investors. Today, I'm going to summarize key highlights from our first quarter 2026 and talk about some exciting developments from our product team. Then Josh will run through some financial results. I'll provide a brief outlook and we'll finish the call with questions. First quarter 2026 was our highest grossing quarter ever, driven by both new and existing account growth. Our revenue for the quarter reached over $760,000. More broadly, this performance validates our long-term trajectory, keeping us firmly on track with a 51% compounded annual growth rate over the past 11 quarters. We added multiple new medical device manufacturing clients and onboarded Acemo, one of the world's leading automotive parts manufacturers. Management took decisive steps to optimize our balance sheet. We paid off significant portions of outstanding liabilities, including paying off our debenture. Operationally, we spent this quarter aggressively improving our financial foundations and building a resilient path toward future profitability, adding resources to our go-to-market team, and continuing to find efficiencies that will help us achieve our profitability targets. Turning to product innovation, Cybeats is introducing SBOM Vendor Manager, a powerful new add-on capability to our existing product suite. This feature addresses a critical operational bottleneck for organizations collecting third-party SBOM data. By replacing outdated, risky, error-prone email workflows with an automated secure ingestion pipeline, we are solving a major enterprise pain point and expanding our monetization path per customer. This product is already field proven and referenceable with active deployments in both a tier one telecom carrier and a US federal customer. While it's too early to determine what the ongoing financial impact is going to be, early deployments have led to meaningful double digit increase in revenue among our early adopters. Overall, Q1 2026 has been a period of focused delivery for the company, achieving multiple strategic milestones. The close of the scribe debt settlement agreement where we settled over $1.2 million of debt, We paid off the remaining $532,000 of our debenture, improving the balance sheet and making Sybeats debt-free. Lastly, we announced our first automotive sector client, demonstrating our ability to open up new verticals. There is much more to come, but we're thrilled with the progress we're making. I would now like to pass the call to Josh to provide a brief overview of the financial highlights.

Thanks Justin. Today I'll review our first quarter ending 31 March 2026. Then I'll pass the call back to Justin for our outlook. As Sean stated, all dollar amounts are in Canadian dollars. For more detailed information, please refer to the financial statements and management discussion and analysis document filed on CDAR Plus earlier today. Revenue for the quarter was $763,679 compared to $681,128 in Q1 2025. The net loss in Q1 2026 was $2,430,993, was higher than $1,185,102 loss in Q1 2025. The net loss before non-cash expenses in Q1 2026 was $857,087, mainly driven from the non-cash expense of $1,572,206 in option grants. Cash expenses decreased to $1,620,766 in this quarter compared to $1,865,072 in Q1 2025, which represents an approximate 15% decrease in cash expenses. Turning to the balance sheet, current assets were $1,538,337 in the quarter compared to $3,650,627 in Q4 2025. There was also a reduction in the non-deferred revenue current liabilities to $1,294,104 compared to $3,293,446 in Q4 2025. These non-deferred revenue current liabilities represent cash liabilities. Cash at the end of the quarter was $1,072,900 compared to $2,751,202 at the end of 2025. The company paid off a $531,995 debenture as well as paid down $333,296 in accounts payable and accrued liabilities. The company's accounts receivable balance at March 31, 2026 does not include the amounts related to SaaS subscription renewals that are expected to become billable in future periods. As a result, the accounts receivable balance at the period end may not fully reflect the company's anticipated near-term cash collections from existing customer relationships. Management expects that upcoming subscription renewals, if renewed and billed in the ordinary course, may contribute positively to the cash flow in subsequent periods. This concludes my financial summary for the first quarter of fiscal 2026. I will now pass the call back to Justin to provide the outlook.