Posabit Systems Corp

Good day, everyone, and welcome to the Positive Systems Corporation first quarter 2026 earnings call. At this time, all participants are placed on a listen-only mode. We will be answering investor email questions at the end of the call. It is now my pleasure to hand the floor over to your host, Oscar Dahl. Sir, the floor is yours.

Thank you, Operator. With me on this call are Ryan Hamlin, Chief Executive Officer, and Emily Egan, Vice President of Finance. 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 will 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 detailed 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 uses 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 these 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.

Thanks, Oscar, and welcome, everyone. I want to start by apologizing for having to move this call to Friday, especially for East Coast folks that are listening in, 430 on a Friday, I feel bad. We had to move it from Wednesday. Honestly, I was under the weather and not feeling good at all. And trust me, you wouldn't have wanted me on the call on Wednesday. But I feel better now and excited to have the call. And we will definitely not do these calls on Fridays. I know that's not a good practice. But we kind of had no choice. We needed to do it and wanted to complete it before the end of the month. So sorry about that. All right, as a reminder, all the numbers that we're going to be talking about today are, again, in U.S. dollars. Q1 was a great start for Positive in 2026. We kept our string of consecutive profitable quarters of adjusted EBITDA, and we meaningfully grew our cash in the bank. Our adjusted gross profit dollars also grew year over year as we continued to expand our point-of-sale presence in the U.S., as well as show strong growth in both our e-com and our new brand portal. We continue to execute on the strategy we have been talking about for several years, growing our revenue, expanding our margins, driving profitability, and putting more cash on the balance sheet. I mentioned in our annual earnings call last month how excited we are for the changes regarding rescheduling of medical cannabis to Schedule 3. We're already seeing some small wins start to happen. In fact, within just the first week of the application window opening earlier this month, over 400 operators have accessed the new DEA medical marijuana dispensary portal to begin the registration process for handling Schedule III medical cannabis. Also this week, a large MSO announced is preparing to uplist on a U.S. large exchange, whether that be the NASDAQ or the New York Stock Exchange. Both of these signal a change coming to the industry, which should have a very positive implication to positive it. more investment capital coming into the cannabis market, more banking flexibility, including, hopefully, full credit card usage. We've talked about that many times in the past. And freeing up more dollars for operators to spend more with companies like Positbit due to 280E tax exemption savings. Okay, I'm going to jump into just a couple of the key financial highlights. For the quarter, We were profitable and had a profitable adjusted EBITDA of about $1 million. Adjusted profit dollars increased by 29% compared to Q1 of 2025. We continue to drive down our expenses and currently only have 75,000 in aged payables. We increased our cash on hand by three-quarters of a million dollars just this quarter alone, so we're putting away good cash. And we added over 50 cannabis operators across our full suite of point of sale, e-com, our new brand portal, and, of course, our payments business. And lastly, we successfully launched our first point of sale install in the New York market back in early January. So we're actively selling now in New York, which is exciting. We discussed our new brand portal and our annual earnings call last month. So I'll just provide a brief update today. We have signed on several of the largest brands in the state of Washington to our new portal. Brands love that they can finally see sales in real time and get deep insights into their retailers who they sell to. This is the first time for these brands to get real-time data straight from the point of sale. Now I'm going to turn it over to Emily Egan, our Vice President of Finance, to dive a little deeper into our Q1 2026 numbers. Emily?