East Side Games Group Inc.

Good afternoon, ladies and gentlemen, and welcome to the Eastside Games Group second quarter 2026 earnings conference call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Thursday, August 13th of 2026. I would now like to turn the conference over to Jason Bailey, CEO of Eastside Games Group.

Please go ahead. Welcome, everyone, to the Eastside Games Group Q2 2026 earnings call. I'm Jason Bailey, Board Chair and CEO of Eastside Games Group. Today, we will share highlights from the second quarter ending June 30th, 2026. I'd like to remind you that certain statements made on this call are forward-looking within the meaning of applicable securities laws. This call includes references to non-GAAP measures, and please refer to our second quarter press release and MD&A precautionary statements relating to the forward-looking information and reconciliations of non-GAAP measures to GAAP results. References to all figures are in Canadian dollars on an IFRS basis, unless otherwise noted. Additional materials can be found in the investor section of our website at www.eastsidegamesgroup.com under the financial information section. Q2 2026 was focused on improving adjusted EBITDA and maintaining disciplined tax management across the business. Throughout the quarter, we ran a significantly reduced user acquisition budget as part of a broader strategy to prioritize efficiency and preserve cash. We targeted a 30-day return on ad spend, which allows us to focus on acquiring the most profitable player cohorts while improving overall capital efficiency. At the same time, we remain very focused on cash generation and debt repayment, with the goal of eliminating our bank debt. Despite the effects on top-line revenue, we believe these changes have best positioned the company well for a disciplined remainder of 2026. Beginning in mid-August, we are transitioning to a new banking relationship, which gives us better access to capital, additional borrowing options, and more appropriate covenants. In conjunction with this improved relationship, we will be increasing our user acquisition spend. This wider net will give us the expanded top line and better long-term profitability. Each dollar spent will be closely measured and returned with a short to mid-payback window. This broader investment approach is expected to support higher revenue while maintaining a disciplined focus on long-term profitability. In Q2, we raised $2.95 million in outside capital in order to reduce debt and manage cash flow. In Q2, we settled our lawsuit with Truly Social Games. This settlement includes $3 million worth of payments. $1 million has already been paid. The remainder will be paid over four payments of 500K every six months. I'll pass it over to Mr. Chan for some financial highlights.

Thank you, Jason. As mentioned, last quarter we continued our strategic pivot towards profitability, disciplined capital allocation, and the preservation of cash with the goal of repaying our debt obligations and creating future long-term value and growth. For the second quarter, we recorded revenue of $10.3 million. and achieved adjusted EBITDA of $1.36 million, which is an adjusted EBITDA margin of 13.2%. On the operational side, our daily active users were at 118,872, with an ARC DAO of $0.995. More importantly, with our stickiness rate, the DAO over MAL ratio increased by 22% year over year, reaching 29.6%, showing the strong core of users that continue to play our games every day. Throughout the quarter, we operated on a significantly reduced user acquisition spend as part of our strategy to prioritize capital efficiency. Furthermore, we took several decisive steps to strengthen our balance sheet. We completed a $2.95 million capital raise to support our working capital, and we reached a settlement in our litigation with Truly Social Games, which provides us with a clear visibility on our future obligations. As mentioned, looking ahead and pending final approval, We are transitioning into a new banking relationship with a major Canadian financial institution, which will provide us with improved access to capital, significant operational flexibility, and restore compliance with our financial covenants. This financial flexibility is key to our next phase. Beginning this month, we intend to materially expand our user acquisition strategy by targeting a 60-day payback window. We are targeting profitable cohorts in our highest margin games, measuring every dollar for a clear short to mid-term return. The goal being to maximize cash flows across the board, the broad base of our portfolio, while paying down our debt. We remain focused on disciplined execution, strengthening our balance sheet, and driving sustainable, profitable growth through the remainder of 2026. I will now pass on to Jim for an update on product. Thank you, Jason.