NanoXplore Inc.

Good day and thank you for standing by. Welcome to the second quarter 2025 NanoExplorer Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Pierre Therese, VP of Corporate Development. Please go ahead.

Bonjour à tous et bienvenue à la conférence téléphonique du deuxième trimestre 2025 de NanoExplore. Good morning, everyone, and thank you for joining this discussion of NanoExplore financial and operating results for the second quarter of fiscal 2025. The press release reporting these results was published yesterday after market close and can also be found on our website along with our financial statements and MD&E. These documents are also available on Cedar Plus. Before we begin, I'd like to remind you that today's remark, including management's outlook and answer to questions, contains forward-looking statements. These forward-looking statements represent our expectation as of today, February 12, 2025, and accordingly are subject to change. Such statements are based on assumptions that may not materialize and are subject to risk and uncertainties. Actual results may differ materially, and listeners are cautioned not to place undue reliance on these forward-looking statements. A description of the risk factors that may affect future results is contained in NanoExport Annual Information Forum, available on our corporate website and in our filings with the Canadian Securities Administrator on CEDAR+. On the call with me this morning, we have Soroush Nazarpo, NanoExport Chief Executive Officer, and Pedro Azevedo, our Chief Financial Officer. After remarks from Soroush and Pedro, we'll open the call to questions from financial analysts. Let me turn the call over to Soroush.

Thank you, PY, and good morning to everyone joining us on the call. I will first start with the review of the economy, more specifically tariffs and the impact on our business. I will then expand on our CSBG expansion and dryer process graphene plan, followed by our graphene sales activities, and end my remarks with an update on our capital allocation plan. From a macro perspective, the previously announced tariffs, followed by 30 days pause until early March, is creating uncertainty in the near term and contributing to an unstable operating environment. We're monitoring the situation very closely and will take action if necessary in due course. The threat of tariff itself is already impacting North American supply chain by pushing companies to rethink sourcing and production strategies. Some trends like reshoring, supplier diversification, and vertical integration are top priorities now. In my opinion, while short-term disruptions are inevitable, long-term implications are sector-specific. Such tariffs are very disruptive to the transportation market, and price increases will be transferred to the end users. Related to our plastic business, raw material is mostly purchased from U.S. and sold back to United States. Based on available information, it seems that there would be no tariff impact. To conclude, tariffs, while disruptive in the short term, are unlikely to have lasting negative impact on our business. Moving to our result, the increased activities from our customers resulted in a constructive second quarter performance, and I'm happy to report another quarter of double-digit organic growth coupled to the 10th consecutive quarter of margin expansion. Regarding our expansion for CSPG and dry process graphene, we are still waiting confirmation from Hydro-Quebec on the allocation of an additional 2 MW of electricity for our project. Request has been submitted around 18 months ago and we have received verbal confirmation already. Our expectation is to receive the official document in the next few weeks. Aside from that, we continued our activities with related stakeholders such as our construction partner and First Nation groups. As of today, everything is in place to start the build-out of the new plant this spring. The dynamics of the North American CSBG market haven't changed, and the supply deficit is persistent and could only be intensified by tariffs on Chinese imports. As it relates to our dry process graphene, production at the company's Montreal facility has been ongoing since July 2024, with sample shipments already delivered to customers targeting a wide range of applications, including composite materials, batteries, packaging, insulating foams, and more. Early customer feedback has been consistently positive. particularly regarding the new cost structure of the dry process graphene. This competitive pricing has accelerated customer testing and decision-making processes, generating significant enthusiasm. To meet growing demand of dry process graphene and build on this momentum, the company's technical team is preparing for a scale-up in production. The engineering team is finalizing plans for a large-scale pilot plant with purchase orders for major equipment expected within the next month. The centerpiece of this expansion will be a new exfoliation mill, anticipated to arrive by the third quarter of the current year. This new equipment will increase pilot production capacity significantly. Once the new equipment is installed and commissioned by the end of calendar year 2025, The company anticipate producing hundreds of tons of dry process graphene powder from the expanded pilot line. This will serve as a precursor for the construction of a multi-thousand ton facility, as outlined in the company's five-year strategic plan. The increased capacity will enable NanoExplore to serve a broader customer base, further penetrate key markets, and accelerate adoption ahead of the full-scale facility's completion. This is a major step forward for us and for the commercialization of dry process graphene. We believe our patented dry process graphene will unlock new market opportunities, particularly as a replacement for other carbon-based additives, since pricing will not be a barrier for prospective clients. Time to market and sales cycles should therefore be shortened. In respect to our direct graphene powder and master batch sales, Validation and testing activities are ongoing. Regarding our customers in drilling fluid and insulation foam, test results have been promising and trials are still in progress. Our drilling fluid customer is undergoing weld tests in various locations in the United States and we expect this process to continue until mid-calendar year 2025 and commercial rollout to start in the second half of calendar year 2025. As it relates to our insulation foam customer, final plant verification will be ongoing for another 90 days. Following the completion of the testing phase, we expect to move to commercial rollout in the second half of this year. Both these products are pillars of our future growth, and winning these businesses will materially impact the future of NanoExplore and graphene market as a whole. We have spent years of development with our Fortune 500 partners and hope to conclude our commercial introduction this year. For our graphene-enhanced composite products, overall demand continues to be strong, but delays in the new program launch combined with the uncertainty created by the potential tariff translate into potential softer near-term demand environment. Having said that, We continue to drive forward with investment in new equipment and will continue to invest more as a part of our five-year strategic plan. A large part of these investments will be in the United States and are supported by booked contracts with existing and new customers. As a matter of fact, our expansion in North Carolina progressed well, with equipment expected to arrive in early summertime frame and revenues to pick up by early fall. With that, I'll now turn the call over to Pedro, who will provide details about our financial performance. Pedro?