NanoXplore Inc.

Good day and thank you for standing by. Welcome to the NanoExplore third quarter fiscal 2025 earnings 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'll need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Pierre Therese, Vice President of Corporate Development.

Bonjour à tous et bienvenue à la conférence téléphonique du troisième trimestre 2025 de NanoExport. Good morning, everyone, and thank you for joining the discussion of NanoExport financial and operating results for the third 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&A. These documents are also available on CDAR+. Before we begin, I'd like to remind you that today's remark, including management outlook and answers to questions, contain forward-looking statements. These forward-looking statements represent our expectation as of today, May 14, 2025, and are accordingly 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 factor that may affect future results is contained in NanoExport's annual information form, available on our corporate website and our filings with the Canadian Securities Administrator on CEDAR+. On the call with me this morning, I have Soushna Zarpot, NanoExport's Chief Executive Officer, and Pedro Azevedo, our Chief Financial Officer. After a remark from Soush and Pedro, we'll open the call to questions from financial analysts. Let me now turn the call over to Soush.

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 provide an update on our expansion plan, followed by our graphene sales activities, and end my remarks with an update on our capital allocations. From a macro perspective, the current U.S. administration economic policies have had a short-term disruptive effect on our customers and consequently on our business, which translated into an unstable operating environment. Short-term, the experience delays in programs launched from existing customers and customers holding back orders. We believe the delayed programs will gradually resume between now and Q2 2026. Our expansion in North Carolina is progressing well, and as previously mentioned, it is supported by booked contracts with existing and new customers. Our third quarter represented a challenging macro environment, and consequently, our revenue growth suffered. That being said, we executed well, and our margins continued to increase. reflecting a greater acceptance of our graphene-enhanced solutions across industries. Regarding our expansion plan for CSPG and dry process graphene, we have received positive signals but still awaiting official confirmation from Hydro-Québec on the allocation of 7 MW of electricity for our project. We met with Hydro-Québec to present the project and have been in contact with government officials regularly. We were unable to start this project without having the required power, and constant delays in the process have been frustrating. Currently, we are working on mitigating strategies and alternatives, such as evaluating other jurisdictions or breaking the project into pieces. No decision has been made, but we're getting closer to such a decision. Aside from that, we continued our activities with related stakeholders, such as our construction partner and First Nation groups. As mentioned before, the dynamics of North American CSPG market haven't changed, and the supply deficit is persisting and could only be exacerbated by tariffs on Chinese imports. As it relates to our dry process graphene, I'm pleased to report that we ordered the equipment needed to produce industrial volumes of dry process graphene within our T-MINS facility. Capacity of this module is between 500 to 1,000 ton per year. We anticipate receiving the equipment by end of calendar 2025 and start production in 2026. This module is one of the modules of the upcoming CSBG dry process graphene plant facility. Setting up this production module enables us to supply larger volumes of dry process graphene to our testing partners. In respect to our direct graphene powder and master batch cells, Validations and testing activities are ongoing. Regarding our customers in drilling fluid and insulation foam, results have continued to be promising. Our drilling fluid customer is undergoing more weld tests in various locations in the US for both onshore and offshore drilling. Even though we expect these validations to continue, We have started supplying graphene to this customer, and they're actively marketing this new lubricant in industry trade shows. As it relates to our insulation foam customer, we're almost done with all the testing, expecting to move to commercial rollout in the first plant of our customer during summer. This customer has several similar production facilities, and we expect to roll out this product to other manufacturing production plants as well. 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 looking forward expanding our partnership with them. For our graphene enhanced composite products, overall demand continues to be strong but delays in new program launch combined with the uncertainty created by potential tariffs clouded the near-term outlook. These tariffs already had disruptive effect with volume reduction on programs while OEM get a handle on the potential impact of tariffs. Having said that, we continue to drive forward with investment in the new equipment and will continue to invest more as a part of our five-year strategy plan. A large part of this investment 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 May-June timeframe and revenues to pick up by August-September. Finally, I would like to say that we are focusing on what we control, which is operating improvement and making sure our balance sheet remains strong. I would like to thank the NanoExport team for their dedication, focus, and hard work in this challenging environment. With that, I will now turn the call over to Pedro, who will provide details about our financial performance.