Posabit Systems Corp

Greetings and welcome to the Positbit Systems Corporation's second quarter 2026 earnings call. At this time, all participants have been placed on a listen-only mode. We'll be monitoring for questions and comments via email, but we will not be taking questions from the phone lines. You can submit any questions or comments to investors at Positbit.com. Please note, this conference is being recorded. It is now my pleasure to turn the floor over to your host, Oscar Dahl, 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 setting 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 POSBIT's 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. As always, all the numbers that we'll be discussing today are going to be in U.S. dollars. Positive had another profitable quarter with strong growth in our core business lines, which further improved the company's overall financial performance. We grew our point of sale business significantly year over year and increased gross profit dollars and adjusted EBITDA and continued to build up our cash on hand. Our focus for the last several years remains unchanged. Expanding our POS footprint, increasing the value of each merchant through additional software products that have a reoccurring SaaS fee, growing our margins, and building a profitable business that generates cash each month. Let's jump into a few of the key highlights for the quarter. POS revenue increased 64% year-over-year from roughly $580 98,000 in Q2 of 2025 to approximately $1 million this quarter. Gross profit dollars increased 10.5% compared to Q2 of 2025 and adjusted EBITDA increased $1.1 million or an 11.6% uptick compared to Q2 of 2025. We added roughly $850,000 in cash during the quarter ending Q2 with approximately $3.34 million in cash on hand. Lastly, we continued to expand our customer base and saw additional adoption across both our e-commerce platform and the brand portal. The growth in our point of sale business is particularly encouraging. We continue to have a dominant position among cannabis retailers in Washington, and that footprint gives us an important advantage as we introduce additional products to our merchant base. This is evident in our e-commerce products, where more retailers are moving onto our platform and creating additional opportunities for Positbit within the existing customer base. We also continue to make progress with our newly released brand portal. Our product catalog now covers a significant portion of all the products available in Washington. We are also pleased to say that the majority of the top 10 brands in the state are now subscribers to the Positbit brand portal. Why is this important? If you recall, as I shared with you last quarter, the brand portal allows us to tap into the other 50% of the cannabis industry, not just the retailers. We are now able to connect retailers to producers and processors in real time. We believe there is a meaningful opportunity here to connect every part of the cannabis ecosystem through the positive tech stack. This gives brands better access to real time information, product data, and tools to manage their relationship with retailers. Now, I'll turn it over to Emily Egan, our Vice President of Finance, to walk through our Q2 2026 financial results. Emily?