Intermap Technologies Corporation

Good afternoon and thank you for joining us for InterMath Technologies conference call to assess its financial results for the second quarter of 2026. On the call today we have CEO Patrick Blott and CFO Jennifer Bakken. Before I pass the call to management, I want to let everyone know that you are in a listen-only mode. If you have a question, please enter it in the question box at the bottom of the webinar at any time. Certain information in this presentation constitutes forward-looking statements, including statements regarding the proposed acquisition and integration of PCI Geomatics, anticipated transaction benefits, government contracting opportunities, procurement and revenue recognition timing, commercial growth and capital deployment, guidance, and future operating performance. Forward-looking statements are identified by words such as anticipate, believe, expect, plan, project, will, and similar expressions. These statements are based on current assumptions that involve risks and uncertainties, including completion and integration of the PCI transaction, availability of capital, revenue variability, timing and structure of government contracts, customer concentration, economic conditions, competitive dynamics, technology risk, cybersecurity, and other factors described in intermixed public violence. Actual results may differ materially. The company undertakes no obligation to update forward-looking statements except as required by law. Now with that out of the way, I'd like to pass the call to CEO Patrick Blott. Patrick?

Good afternoon, everyone, and thank you for joining us. I'm going to start here on slide three. The second quarter included important strategic progress alongside continued timing effects from large government procurement programs. Today, I'm going to focus on three areas, the growth of our commercial revenue, the strategic importance of the PCI Geomatics acquisition, and the status of Indonesia in our outlook. I want to start, though, by welcoming Michael Rolland, Intermath's Board of Directors. Michael brings decades of experience financing infrastructure programs and building businesses across the globe as an institutional investor leading a $145 billion pension fund, including in Southeast Asia, where he established OMER's investment program there. Michael understands the value of foreign direct investment to drive growth. while also strengthening sovereignty, independence and institutional resilience. That's what our customers ask for. So welcome, Michael. Let me start with comments regarding the outlook. The commercial business continues to perform better than expected and the guidance is for double-digit growth reinforced by the PCI acquisition. Our government business is more complicated because of delays in Indonesia, obviously. including macro factors there where our assets are committed through a binding tender agreement although they still need a map and we do expect them to award this year per their public statements. The president wants this. He's pro foreign institutional investment. He's pro integrity. He's pro growth and he's pro Indonesia and so are we. We've been operating there for more than 30 years. Nothing is certain in competitive processes but if they achieve their timing to award this year and we win, our guidance of $30 million will likely turn out to be conservative and if they do not, we will update our guidance accordingly. We will also update following the completion of PCI and we'll have more clarity on timing there and its impact on our commercial business. So revenue for the quarter was $2 million and revenue for the first six months was $3.4 million. We remain in the tendering process in Indonesia with our people, capital, assets committed to a successful program there, which is a presidential imperative. Although there are timing effects involved with getting the answers right in a complex international tender impacted by macro factors, Indonesia requires a world-class foundation map, and we remain committed to making sure they achieve that objective. As a result, there's no acquisition services revenue in this quarter, Just the tender and costs. Together, software and solutions and value-added data represented all of the second quarter revenue compared with approximately 53% in the prior year quarter. The change in mix reflects an absence of acquisition services revenue, while Indonesia follow-on awards remain in procurement. Value-added data revenue more than doubled year-over-year. Software and solutions prepaid revenue grew 35%. These results are driven by strong organic growth trends and adoption of our newest AI-driven products, particularly in the insurance subscriptions, which now offer energetic AI risk assistance. We announced our third fast-track strategic technology research contract through a leading defense prime contractor supporting the U.S. Department of War research program focused on position, navigation, and timing in GPS-denied environments. The program is designed to advance navigation capabilities for military, aerospace, and autonomous systems operating in environments where GPS signals are unavailable, degraded, denied, or intentionally disrupted. This award further validates our strategy of transforming proprietary geospatial data into mission critical intelligence solutions supporting some of the world's most important defense and aerospace challenges. Following the quarter, we announced a definitive agreement to acquire PCI Geomatics for $11 million Canadian in cash, an important step in expanding our opportunity in commercial space and delivering faster, automated, autonomous systems and integrated geospatial intelligence to all our customers. Customers want assured data sovereignty and integrity, and they want an accelerated information loop. They want to be able to work with software and tools that enable data providence at scale and at speed. This transaction combines data, processing, and software and achieves that, and it's a monumental strategic step forward for both of our companies and the industry. We'll talk further about that in a minute, but with this deal and organically, we continue to invest in the people, customers, technology, and infrastructure needed to support government and commercial growth. We continue expanding applications built on our proprietary 3D Foundation data, the only archive of its kind in the world across insurance, telecommunications, autonomous navigation, defense, commercial space, and critical infrastructure markets. During the quarter, we took an important step in executing our long-term strategy with the announcement of our acquisition of PCI Geomatics. PCI is a global leader in satellite and aerial image processing. Its capabilities support more than 500 satellites and thousands of production workflows. The transaction adds image processing, cloud-native microservices, APIs, and edge processing capabilities that complement InterMAP's proprietary 3D terrain data with rectification and AI-powered analytics. In particular, the combined company dominates the commercial market for the tools and data used to produce world-class digital elevation models at scale, which form the foundation of modern mapping. Together, these capabilities are designed to create a more vertically integrated platform spanning data collection, image processing, terrain intelligence, analytics, and delivery in ways that customers want to consume, assure, and protect their data. They also provide strengthen our ability to support customers that require secure, scalable, proprietary, and increasingly automated software-driven geospatial workflows. The transaction is expected to close by the end of September, subject to PCI shareholder approval and customary closing conditions. Both companies are preparing for integration while remaining focused on execution across existing businesses. On slide five, Turning again to Indonesia, the follow-on procurement process remains active, though it has taken longer than we originally anticipated, but arguably this is a good thing. We've been asked to extend certain timelines, and we've agreed. We have resources committed to helping this important customer achieve a successful program, and we remain confident in the opportunity and in our ability to execute if it's awarded to us. At the same time, It's critical that the program unfolds in a way that maintains the confidence of its government and financial sponsors, particularly when it's a presidential priority in the face of severely stressful macro headwinds, and it benefits from third-party institutional funding by the World Bank. This is not a science experiment. Let's go spend $200 million and see what happens. and it's not a foreign government sponsored program with all the sovereignty challenges and quality problems that kind of funding involves. This program, which was years in the making to qualify for third party World Bank institutional funding, is a major strategic initiative that carries an opportunity to significantly build Indonesia's technology capacity, foreign direct investment and domestic employment. while at the same time raising the country's foundation mapping quality to a specification standard that leads much of the developed world. Intermap has been building and investing in Indonesia for more than 30 years and we have developed a local Indonesian talent, past performance, technology, and experience base to lead a world-class geospatial program there driven by experienced Indonesian employees. Intermap is aligned with the President's agenda to make that happen and create an attractive environment for FDI, reassure markets that Indonesia is one of the most undervalued and underappreciated investment opportunities in the world right now for institutional capital, and that Intermap remains a great public vehicle and barometer for that investment opportunity. We're showing through this program that Indonesia knows how to attract capital and lead Southeast Asia in domestic employment and growth. The timing of awards and the resulting recognition of revenue remain outside our control. Acquisition services revenue was nil during the quarter compared to 1.4 million in the prior year period while we maintain our commitments to Indonesia. That difference reflects timing, not alignment, not outcome, and it does not reflect a change in our operational readiness nor our commitment to the program. We continue to maintain personnel, aircraft, radar systems, and processing capabilities required for immediate deployment. We are also advancing government opportunities across Southeast Asia, North America, South America and the Middle East. I'll now turn the call over to Jen to walk through the financial results in more detail.

Thank you, Patrick. As you previously stated, total revenue for the second quarter was $2 million compared with $3 million for the same period last year. For the six months, revenue was 3.4 million compared with 7.3 million last year. That difference primarily reflects the timing of follow-on contract awards in Indonesia and the absence of acquisition services revenue during 2026. By category, software and solutions revenue remained steady at 1.3 million for the quarter, while software prepaid contracts grew 35%. Value-added data revenue increased to 700,000 from 300,000. and acquisition services revenue was nil compared with $1.4 million in the prior year quarter. Net loss for the quarter was $2.1 million or $0.03 per share compared with a net loss of $800,000 or $0.02 per share in the prior year period. Adjusted EBITDA was negative $1.4 million compared with negative $300,000 in the prior year. The year over change in operating goals primarily reflects lower acquisition services revenue and continued investment in personnel and infrastructure to support expected growth. Personnel expense was 2.1 million compared with 1.8 million, while purchase services and materials declined to 1.1 million from 1.2 million. We ended the quarter with 16.2 million in cash, 12.6 million in working capital, and 17.7 million in shareholders' equity. Accounts receivable and contract assets decreased to $1.2 million from $2.1 million at year-end, related to the timing of recurring customer billings and collections, while accounts payable and accrued liabilities decreased to $2.1 million from $2.3 million. Contract liabilities increased to $3.5 million from $2.6 million at December 31, Approximately 88% of that balance relates to software and solutions license revenue that was paid in advance and will be recognized over the applicable license terms. During the first six months, we invested $2.2 million in property and equipment compared with $200,000 in the prior year period. These investments support our platform sensors, data archives, processing capabilities, and commercial delivery infrastructure. As disclosed in the financial statements, PCI transaction is expected to use $11 million Canadian of cash at closing in Q3. The acquisition is expected to have material recurring subscription revenue and positive net cash flow. Remain focused on the discipline capital deployment as we prepare for the closing and integration. I will now turn the call back to Patrick.

Thanks, Jen. We're now on slide eight, I think. As we look ahead, we're focused on completing the PCI transaction and integrating its technologies and commercial capabilities to improve product quality, breadth, scale and speed. We're maintaining deployment readiness and working to convert government opportunities into awarded contracts, including the follow-on opportunity in Indonesia. We're continuing to grow commercial revenue across AI-powered insurance analytics, telecommunications, autonomous navigation, defense, Commercial Space, and Critical Infrastructure. Our business outlook remains strong. The timing of Indonesia continues to be the principal variable affecting 2026 year-term results. We remain confident in our long-term growth prospects. Following the closing of PCI, we expect to provide updated financial guidance reflecting the financial profile and the outlook of the combined company. Our focus remains on execution. completing the transaction, supporting our customers, converting opportunities into revenue, and building long-term shareholder value. Thank you, everyone, for joining us today. We'll now open the lineup for questions.

Thank you, Patrick. As a reminder, you can submit a question by clicking the Q&A tab at the bottom of the webinar. I'd like to thank those of you that have already submitted questions, and we'll start with Indonesia. A bunch of questions here. We'll try to come up with a few together. For several weeks, the project schedule now shows that the client is waiting on a no-objection letter from the World Bank. To what extent does this represent progress toward final decisions? How is your confidence level in winning some or all of the lots of balls since the last earnings call we made?

Yeah, I mean, there's various decision makers here, right? And that's important to understand. But the World Bank is more involved. This is not a science project. It's an institutional investment by an institutional investor looking for a return from one of the most recognized financial institutions in the world. They're going to make sure they get it right. More eyes, more time, but also more confidence, right? More opportunity for follow-on and the more stability for the country, which is under severe stress right now. and the benefits from greater institutional assurances and support. So I view it as a good thing. Intermap is still the only company with the best performance and the capabilities. We're independent. We're not government-owned. We're international. And this is an international procurement, not a domestic procurement. So our confidence remains high. Nothing certain, but our confidence is high.

Do we not need to maintain a certain cash level to remain eligible for Indonesia? What specific binding commitments are tied to Indonesia?

Yeah, we provided alongside our lenders and our other capital providers several multiples greater financial liquidity availability commitments than are required by the documents. So we're very, very strong on that score.

Okay, thank you. Moving on to other national mapping programs. Can you talk about how many Indonesia-like opportunities you see in other countries and when those might come to market? How important is winning some or all of the work in Indonesia to winning additional national mapping projects?

Well, we've recently won a proof of concept in another very important country, and we believe that's going to lead to a national mapping program. We have several others in the region shaping their own upgrades. When Indonesia gets it right, others want it, no question, we've already delivered 1,000 to 5,000 scale map sheets and half-meter dams for over 385,000 square kilometers of the most difficult territory in Indonesia in a mind-blowing short period of time. and people notice that.

Okay, thank you. A few questions on the PCI geomatics acquisition. Can you elaborate on your prior work with PCI and how that contributed to the acquisition decision?

Yeah, I mean, this is a very, very important transaction. IMP and PCI, we've worked together for decades. We funded and contributed processing technology very early on in their evolution. We're both dual-use companies from the technology perspective. I don't know that most decent large-scale elevation models in the world get created by touching one or the other of us. They focused on commercial space since the industry's inception, the strategic rationale for the acquisition, was customer-driven. We have customer requirements for distributed edge processing, for low-latency foundation data, for global-scale gridded 3D directories, enterprise platforms to operate those directories, and for advanced long-range P&T and targeting, as I discussed earlier. PCI is in the workflow with APIs for substantially most of the leaders in that commercial space industry. Our customers, both of our customers downstream, the users, they're swimming in data and imagery from sensors, not just from space, but also from airborne and ground and sea, drones, helicopters, spacecraft, I mean, you name it. The problem is integrating multiple sources to produce useful and timely analysis ready information and be able to do that automated at scale. Both of these companies can do that starting right from the sensor, regardless of the platform it lives on, whether it's a satellite or an airplane or a drone, they can do it with the software and the AI-driven analytics to make that data useful. So this is transformative, not just the product but also the business model. It's like, I mean, I think of it like when Google buys DoubleClick and all of a sudden a directory and search industry becomes targeted advertising and social networks. You've got to put the two sides together. to achieve that kind of an outcome and advances everything forward. We are now distributed. We're ubiquitous. We're fast. We're assured. We're enabling countries and companies to own and control their own authoritative data stack from a single vertically integrated assured supply chain. It's not sensor or provider dependent. They can consume data the way they want. and their own workflow.

This is a big, big deal.

And as far as I know, we're the only ones doing it.

Does announcing this transaction improve your odds in Indonesia and or with other work you're pursuing?

Yeah, I think it advances the football across the board because, like I said, we're able to operate now in a way that is distributed and autonomous and automated and and allows customers much greater control over their own data sovereignty and providence and workflow and doesn't have them captive to single source sensors, platforms or providers. So it's a big deal.

Not sure how much we want to comment on this until the transaction closes, but can you rough out how PCI's revenue mix looks in terms of commercial versus government and defense? and discuss how that mix and PCI's capabilities inform Intermass focus in terms of pursuing new projects?

Yeah, we're not going to get into that until the transaction closes and so I'm just going to leave that with that.

With Indonesia follow-on awards taking longer than expected. Is the PCI acquisition and combined company's liquidity plan underwritten without relying on material near-term cash receipts from Indonesia? Yes. Okay. Turning to defense. Can you talk about the pipeline of defense opportunities you're seeing and where you're seeing the greatest strength there?

I mean, as I said in the comments, we're heavily engaged on the development side for integrating software data AI to address navigation and targeting problems. When you hear about weapons mistakenly hitting hospitals or kindergartens, that's a data problem. That's where poor data or old data finds its way into a massive scale automated kill chain. These systems... that are otherwise more reliable and precise than human-operated versions, but they have a data problem. So we're deeply involved in that over three to four different Department of War contracts. We're deeply involved in the backbone, having a reliable, authoritative 3D grid, a top-shelf version of our NextMap that lives and breathes. Again, edge processing from multiple sensors to reduce latency is an industry priority, and that feeds into that. and then finally I guess sovereignty requirements as I've said before driving the need for mapping and the objective here is to automate in ways that achieve distributed capabilities that allow our customers the capacity to build themselves their own capabilities and have that data sovereignty and that provenance without degrading the quality. So those are three really important areas and that's a technology challenge that PCI is helping us address.

Thanks. What is happening with the NGA Luno and the DARPA contracts? Last earnings call, I believe you mentioned the U.S. contract in the final phases. Just kind of looking for an update there.

Yeah, they're both in. They're both, I mean, the DARPA one converted, and then Luno does periodically drop task orders. Some of the ones in vehicles like that, you know, do get impacted by what's happening on the kinetic side, and obviously there's been some pretty significant activity kinetically in SOUTHCOM and in CENTCOM. Everybody's sort of watching that every day. So those do affect, you know, how and when the government operates with its contractors.

Just touch on the guidance. I think you covered it in the presentation, but maybe just kind of reiterate for some people. Press release doesn't specifically reiterate the prior 2026 revenue even a margin guidance. so you're withdrawing that for now pending completion of the PCI acquisition.

Yeah, what I think I said in the statement is that we're at the moment especially compared to the last quarter that we're in this Indonesia procurement our assets are committed to fulfilling that and they've told us and the market and everyone else that they're going to do it. Right, so and as long as they get it done this year we're going to probably meet our guidance or exceed it. And so until that changes, either they award or they don't award or something changes there, if they do change it, we'll revise the guidance. But I'm not going to second guess the customer.

Perfect. One final question here, kind of going back to Indonesia, but I think you might have touched on this. Is Intermap able to do all of the data processing in Indonesia? If so, is Intermap the only company able to do is processing. This has been an issue that's been made a bigger deal because of the delay.

Yeah, I mean, in the industry, as I said before, processing is a bottleneck. It's a hard problem. There's plenty of sensors all over the place. They're on every kind of platform you can imagine, increasingly on drones. Sensors and cool platforms to put them on There's no shortage of that, and there's almost no novelty to it. The very hard part is processing those massive quantums of data, and I'll remind everybody that in Indonesia specifically, that's a half-meter DEM spec. So I don't know if there's a handful of companies in the world that have done country-scale half-meter DEM spec. I think there's none other than us.

Okay, thank you. We're getting up here on 530 and let's see if we got through all the questions. So, if you do have any other questions, please feel free to reach out to us and we're happy to help there. I'll turn the call back over to you, Patrick, for closing remarks.

Okay. Well, thank you all for joining today's call. We look forward to updating you on progress in future quarters.

This concludes Intermap's second quarter 2026 conference call. We thank you for joining us. Have a great day.