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.