Posabit Systems Corp

Good afternoon, everyone, and welcome to the Positbit Systems Corporation third quarter 2025 earnings call. At this time, all participants are in a listen-only mode, and after management's prepared remarks, they will be answering some pre-submitted analyst questions. If anyone should require operator assistance during this conference, please press star zero on your phone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Oscar Dahl, Chief of Staff at Positbit Systems. Oscar, the floor is yours.

Thank you, operator. With me on this call are Ryan Hamlin, Chief Executive Officer, and Emily Egan, Senior Corporate Controller. I would like to begin the call by reading the Safe Harbor Statement. This statement is made pursuant to the Safe Harbor for Forward Looking Statements described in the Private Securities Litigation Reform Act of 1995. All statements made on this call, with the exception of historical facts, may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although the company believes that expectations and assumptions reflected in these forward-looking statements are reasonable, it makes no assurances that such expectations prove to have been correct. Actual results may differ materially from those expressed or implied in the forward-looking statements due to various risks and uncertainties. For discussion of such risks and uncertainties, which could cause actual results to differ from those expressed or implied in the forward-looking statements, please see risk factors details in the company's annual report and subsequent filed reports, as well as in other reports that the company files from time to time with CDAR. Any forward looking statements included in this call are made only at the date of this call. We do not undertake any obligation to update or supplement any forward looking statements to reflect subsequent knowledge, events, or circumstances. The company will also be citing adjusted EBITDA, adjusted revenue, and adjusted gross profit in today's discussion. Adjusted revenue, adjusted gross profit, and adjusted EBITDA are non-IFRS measures used by management that do not have any prescribed meaning by IFRS and may not be comparable to similar measures presented by other companies. The company defines adjusted revenue as gross revenue minus licensed support revenue plus actual licensing cash received as part of positive licensing deals. The company defines adjusted gross profit as adjusted revenue less company cost of goods sold. The company defines adjusted EBITDA as net income or loss generated for the period as reported before interest, taxes, depreciation, and amortization, and further adjusted to remove changes in fair values and expected credit losses, foreign exchange gains, and or losses and impairments. The company believes these non-IFRS measures are useful metrics to evaluate its core operating performance and use these measures to provide shareholders and others with supplemental measures of its operating performance. The company also believes that securities analysts, investors, and other interested parties frequently use non-IFRS measures in the evaluation of companies, many of which present similar metrics when reporting their results. We caution that adjusted revenue, adjusted gross profit, and adjusted EBITDA are not substitutes for gross revenue, gross profit, or profit loss, respectively. Now, I would like to turn the call over to Ryan Hamlin, Chief Executive Officer. Ryan, please proceed.

Thank you, Oscar, and welcome, everyone. As a reminder, all the numbers that we'll be talking about today in the call are in U.S. dollars. Q3 was another great quarter for POSBIT. We continued our focus on growing reoccurring SaaS revenue, which provides more predictability quarter over quarter and de-risks our overall business. We also grew our cash on hand by nearly a half a million dollars this quarter, all while still paying down our accounts payable by 41%. which represented about $400,000 in aged payables. The team is executing on all cylinders, and our customers are very happy. We look forward to continued growth this year and years to come. Now, let's jump into a few of the key highlights in case you missed the press release that just came out. We had our first nearly $1 million adjusted EBITDA quarter in the history of the company, coming in around $970,000. A growth of over $150,000 in adjusted gross profit, which resulted in an 87% adjusted gross profit margin versus 77% last quarter in Q2. Again, another record for POSBIT. Our reoccurring SaaS revenues increased 22% in Q3 versus Q2. This demonstrates the focus and success we have had on growing our point of sale and our e-com menu business. And lastly, as I mentioned, cash on hand grew quarter over quarter by nearly a half a million dollars, ending at over $1.2 million. And we still, as I mentioned, paid down our payables by $400,000. I said this on the past calls, and I'll say it again. If you hear anything on this call, the theme is this. Positive is profitable. We are growing, and we're continuing to put more and more cash in the bank. Now I want to set you on a couple other key points that happened this quarter. Our focus certainly remains on growth around our main reoccurring revenue product lines, our point of sale, and our e-com business. Both of these businesses have been very healthy and continue to grow, not only in our home state of Washington, but continued steady growth in Oregon, New Mexico, and now new markets on the East Coast. We are running the same playbook that got us to 90% of all retail transactions in Washington State going through the positive POS. We continue to see the trend where more and more retailers are looking to one company to provide the majority of their software needs. The point of sale is the engine and the hub for all retailers. We're pleased to see our POS base add the new Positbit e-comm menu, the Positbit loyalty program, online order management, and much more. While many retailers take advantage of all of Positbit's all-in-one solution, We also provide up to 60 different companies that have integrated with Positiv. This choice is one of the key reasons so many of our retailers like Positiv. Now I'm going to turn it over to Emily Egon, our Senior Corporate Controller, to dive a little bit deeper into our Q3 numbers. Emily?