Vext Science Inc

Thank you for standing by. This is your conference operator. Welcome to the VEX Science First Quarter 2026 Financial Results Conference Call. As a reminder, all participants are in a listen-only mode, and the conference call is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star then one on your telephone keypad. Should you need assistance during the conference call, you may reach out to an operator by pressing star then zero. I would now like to turn the conference over to Ms. Priyam Chakraborty. Please go ahead, ma'am.

Thanks, operator. Good morning, everyone, and thank you for joining us today. VEX first quarter 2026 financial results were released earlier this morning. The press release, financial statements, and MD&A are available on CEDAR Plus as well as on the VEX website at vexscience.com. We would like to remind listeners that portions of today's discussion include forward-looking statements and that forward-looking statements are included in today's filings. There can be no assurance that these forward-looking statements will prove to be accurate or that management's expectations or estimates of future development circumstances or results contained therein will materialize. Risks and uncertainties that could affect future development circumstances or results are detailed in the NDNA and other public filings that are made available on CEDAW class, and we encourage listeners to read those risk factors in conjunction with today's call. As a result of these risks and uncertainties, the development circumstances or results, predictive and forward-looking statements may differ materially from actual development circumstances or results. This call also includes non-IFRS financial information, and such non-IFRS financial measures are subject to the disclosure and reconciliation included in our press release disseminated earlier today, as well as the MD&A. Overlooking statements made during this conference call are made as of the date of this call. VEXC disclaims any intention or obligation to update or revise such information, except as required by applicable law. VEX financial statements are presented in U.S. dollars, and the results discussed during this call are in U.S. dollars. I will now pass the call over to Eric Offenberger, Chief Executive Officer of VEX.

Thanks, Priyam. Good morning, everybody, and thank you for joining our first quarter 2026 Financial Results Conference call. I'm joined today by Trevor Smith, VEX CFO. VEX delivered a solid start to 2026, with profitability gains in Ohio more than offsetting continued pressure in Arizona, reflecting the benefits of the strategic decisions we have been making across the business. During the quarter, revenue increased 5% year over year to $12.2 million, while gross profit more than doubled to $5.5 million. Adjusted EBITDA was $3.6 million, on 29% margins, up sharply from where we ended last year. Most importantly, the underlying business continued to generate cash. Cash from operations was 1.6 million in the quarter, despite temporary working capital headwinds and continued drag from Arizona cultivation operations ahead of the Eloy shutdown. For us, operating cash flow remains one of the clearest indications that our strategy is working and the business is scaling efficiently. Ohio continues to be the primary growth driver for VEX. Based upon available two-month data through February 2026, statewide Ohio sales increased more than 20% year-over-year, with March data not yet fully available. Our Ohio revenue increased 34% to $8.2 million, supported by contributions from the additional dispensaries, acquired last year improving cultivation performance. The strategy from here is the same one we've been executing. Open the right stores in the right places. Supply them out of our own highly efficient cultivation and convert that into cash. Every store we add makes the proven model stronger. At the same time, the Ohio market is beginning to mature. Competition continues to increase as additional dispensaries come online across the state, particularly in Columbus, and pricing pressure is gradually emerging in certain categories. This is a dynamic we know well. We've already navigated through a maturing adult use market in Arizona and understand the importance of disciplined operations. The competitive advantage of strategic retail locations, controlled capital allocation, and maintaining flexibility around pricing and product In our experience, operators that remain disciplined and focused on cash flow generation will continue to separate themselves as markets mature. That has been Beck's approach from the beginning, and we believe it positions us well for long-term success in Ohio as the market continues to evolve. Through 2026, we remain focused on completing the Ohio retail build-out, expanding cultivation capacity to support that retail network, and increasing operating leverage as the platform scales. We expect to open our sixth dispensary in Fairfield in the second quarter and our seventh in Columbus later this year, with the eighth license advancing through the regulatory process into early 2027. Ohio remains our highest return growth opportunity, and our capital allocation remains focused accordingly. In Arizona, the final harvest of Eloy was in the first week of May, and the cultivation exit is underway. We expect it to be complete by the end of the second quarter of 2026. The Arizona wholesale market is oversupplied, and prices have compressed to the point where our capital is better deployed elsewhere. As we said on the last call, this was a decisive move, and we expect the related cash flow drag to continue to improve as the year progresses. What's left is the part of Arizona that works. two dispensaries in the Phoenix Metro, a light manufacturing footprint, and the flexibility to source and price competitively rather than absorb our own oversupply production. We expect that this refocus strategy will cut substantial operating costs and will improve the overall margin and cash flow profile of our Arizona business. Overall, we continue to operate with discipline across both of our core markets while focusing capital on our highest return opportunities. As we move through 2026, our priority is executing on the next phase of growth in Ohio while further streamlining our Arizona operations to enhance margins, strengthen cash flow generation, and support long-term shareholder returns. With that, I'll turn it over to Trevor for a closer look at the financials. Trevor?