Intermap Technologies Corporation

Good afternoon, and thank you for joining us for Intermap Technologies' conference call to discuss its financial results for the second quarter of 2025. I'm Sean Peasgood from Sofit Capital. We handle Intermap's investor relations. On today's call, we have Intermap's CEO, Patrick Blatt, and CFO, Jennifer Balkin. During the call, all participants are in a listen-only mode. Following the presentation, we'll conduct a question and answer session. We encourage you to submit your questions through the Q&A tab below at any time, and management will answer them following our prepared remarks. Before management discusses the results, I'd like to remind everyone that certain statements in this call may be forward-looking in nature. These include statements involving known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied in our forward-looking statements. For caveats about forward-looking statements and risk factors, please see our MD&A for the second quarter ended June 30th, 2025, which will be filed today on our company profile at CDAR+. I'll now hand the call over to Intermaps CEO, Patrick Blatt. Patrick.

Thank you, Sean. Good afternoon, ladies and gentlemen, and welcome to Intermaps results conference call for the second quarter of 2025. I'm Patrick Blatt, Chairman and CEO of Intermap. Today, as we review the second quarter, I will provide highlights along with a business update and outlook. Then I will turn the call over to our CFO, Jennifer Bakken, to walk through our recent financial performance. And we'll leave some time at the end for Q&A. Q2 was flat as expected as we focus on the upcoming program in Indonesia, which is approximately 10x what we are doing in Indonesia right now. The company is moving the ball forward on all fronts. We are reiterating our guidance for the year with multiple pathways to meet our goals. In the second quarter of 2025, we generated total revenue of 3 million compared to 3.6 million in the second quarter of 2024. The difference relates to timing, particularly payments in upfront Indonesia, which started in early 2024. Cash generated from operations was 2.1 million for the quarter, and it grew 22% over the comparable six-month period in 2024, reflecting high contribution margins from processing and geo-int. The company settled 1.2 million of non-recurring accrued liabilities and payables during the quarter, reducing dilutive shares by 1.3 million, and it improved liquidity to 8.6 million from 3.8 million in December. This includes the issuance of 5.3 million shares for Canadian 225 per share in the first quarter and positions the company for upcoming tenders with a stronger working capital and net liquidity position. Current assets minus current liabilities improved to 3.6 million from a negative position last year, and we're working hard to address going concern language and associated risk. Since we commenced work in Indonesia, the company has invested approximately 2 million to upgrade its processing platform and sensor kit, which has dramatically increased the speed and quality of its products and positioned us well for follow-on tenders. The acquisition services segment included demobilization, pursuit, and other extraordinary costs related to the upcoming expected tender for Indonesia's remaining base map. There's still approximately 90% of the country to be mapped. With Indonesia specifically, they published their draft of the RFP on July 30th. have taken public comments and provided Q&A. This is harmonizing with World Bank process. These comments feed back into the World Bank and we expect a former tender shortly without many changes. The documents call for a three-year deal tendered upfront in four lots covering approximately 1.6 million square kilometers. They published 195 to 200 million as their budget and included 15% upfront. which is in the range of 30 million. This is a larger program, and it's sooner than what we've been guiding, which is good news. It also contemplates on-premise geo-int work as part of the scope, which is also good news for follow-on and value-added recurring services. Indonesia also announced a trade agreement with the U.S. during the quarter, which specifically addressed digital trade and services investment. This adds certainty. Intermap is the only company to ever produce authoritative US-based maps under US government exceptions specifically for Intermap to employ Indonesians working on US maps in Indonesia. Having World Bank involvement further increases transaction certainty. The program is now US dollar funded and well capitalized. This should have a positive financial impact on both our existing operations there and the upcoming tender. I'm on slide five. In other government work, the US government has commenced tendering against, excuse me, again, under some other vehicles, including Luno and Janus after a pause while the restructuring and DOGE completed their reviews. None of our vehicles saw reduction in ceiling. So we expect stronger participation from the US government in the back half of the year. Most of our vehicles are in proprietary areas or priority areas. and are in the process of getting upsized. In particular, partner nation work is very active right now, which is our sweet spot, as allies and defense departments around the world realign, upsize their budgets in Europe, South America, Canada, the Middle East and Southeast Asia. The pivot is in our direction. It's focused on integrating advanced commercial geo and technologies and mapping for 3D situational awareness on the ground that provides both tactical and strategic support. Everyone's focused on territory. Protecting sovereignty is a tailwind continuing growth in demand in the sector. The first line of defense to any challenge to sovereignty is a map. We have expanded our engagement with DARPA, gaining sponsored access to additional government funded cutting edge applied geospatial technologies, advanced research and development, next generation geospatial products, and emerging dual use companies on contract with DARPA. DARPA is where Modern Intermap was born. This is a very important refresh of that longstanding relationship. We are working to integrate these technologies into our own and our customer product roadmaps and look forward to making further announcements shortly. Our government work is supported by a large pipeline from existing clients, as well as active pursuits and related and new jurisdictions. We are advancing our technology and product development in alignment with many partner nations and US government requirements. Slide six. Our commercial business is also very strong right now. In Europe, our beta test agentic AI product is driving record volumes of geo and consumption. We're expanding in each of our targeted markets. We're in the process of introducing multi-parallel analytics to our North America accounts first rolled out in Europe. These bundles achieved in excess of 70% higher pricing on average across our European portfolio by demonstrating enhanced risk assessment capabilities. We began implementing with several of our larger clients, a new product called insurance risk assistant subsystem I-RAS, which is an agentic AI driven SaaS solution. It's an entirely bottoms up approach that mitigates risk and improves risk evaluation and predictability by up to 30% for hard to write specialty lines. This AIML solution is the result of a decade in development to achieve the maturity level to productize price and roll it out to major insurance underwriters. It is compliant with the EU's GRDP requirements, and we should start to see the financial impact on our results starting as soon as the back half of this year. Intermap registered under the U.S. Securities and Exchange Act as a foreign private issuer this year and made its financial statements and securities filings available to investors on both CDAR and EDGAR. To support its disclosure requirements, the company retained MNP as its auditors who have reviewed these quarterly statements and whose audit team is fully certified to complete our annual audit to PCAOB audit standards. We it remains the company's objective to make our stock available for investors to easily trade to improve liquidity in our stock, particularly in the US. We continue to pursue an upgrade graded listing, which we believe we can accomplish before the end of the calendar year. Intermap took approximately a million dollar currency charge in Indonesia as the IDR-US pair has been volatile due to tariffs and other issues. Going forward, currency risk and hedging costs associated with overseas government contracts would be mitigated significantly by the support of the World Bank funding, which is denominated and fixed in U.S. dollars. Jennifer will provide more detail about our second quarter of 2025 financial results in her commentary, but we are pleased with both our execution on key contracts, the timely payment from our customers reflecting their satisfaction, and our resulting financial performance for the quarter. And these results lead us to reiterate the 2025 guidance that we provided when we released our 2024 full year financial results. Importantly, this guidance is supported by the draft RFP published two weeks ago by Indonesia and the timelines outlined therein. For 2025, we expect revenue between $30 and $35 million and an adjusted EBITDA margin of approximately 28%. We remain on track to achieve that guidance. At this point, I would like to turn the call over to our CFO, Jen Bakken, who can walk you through our second quarter of 2025 financial results.

Thank you, Patrick. As mentioned earlier, we report our financial results in U.S. dollars. For more detailed financial information, please refer to the financial statements and management discussion and analysis document that we will file today on CDAR+. During the second quarter of 2025, total revenue was $3 million compared to the $3.6 million we reported for the second quarter of 24. Approximately 84% of consolidated revenue was generated outside the United States compared with 80% in 24. Acquisition services revenue for the quarter was $1.4 million versus the $1.6 million reported in the comparable 2024 quarter. The small decline is a function of the timing of the execution of government contracts, including Indonesia. The quarter's value-added data revenue was $300,000 versus $700,000 in the second quarter of 2024. That decline relates to timing differences in the delivery of repeating products. Second quarter software and solutions revenue grew 6% year over year to 1.3 million versus 1.2 million in the second quarter of 24, largely driven by the expansion of the global insurance business. Total assets are 13.8 million versus 11.9 million at December 31, 24. Cash unbilled and AR totaled 8.8 million at the end of the quarter versus 6.6 million at the end of the fourth quarter of 24. As Patrick previously mentioned, the company sold 1.2 million of non-recurring accrued liabilities and payables during the quarter, contributing to working capital improvement to 3.8 million at June 30, compared to a deficit of 600,000 at December 31, 24. The reduction in dilutive shares outstanding of 1.3 million shares creates headroom in the omnibus plan. This concludes my financial summary for the quarter. for the second quarter of 25. Before passing the call back to Patrick to discuss the outlook, I'd like to add the primary risks to our outlook include timing related to follow-on awards, which include approved World Bank funding. We're exposed to currency fluctuations around the world, which we partially hedge to mitigate exposure concentrations. Intermep is not affected by recent cross-border tariffs as the company does not source any hardware or materials required to execute on contracts from Canada. These conclude my prepared remarks. I'll pass the call back to Patrick for final comments.