Microbix Biosystems Inc.

With me, I have Cameron Groom, CEO, Ken Hughes, COO, and Jim Curry, CFO. Before we get started, the format will be a bit of an overview of the quarter from the management team, and then we'll jump right into Q&A. So if you have any questions, feel free to... submit them in the Q&A box at the bottom of the screen, or you can always email them to me at deborah.ca, although I'm sure most of you have my email address at this point. I don't believe that we're going to work off our presentation, but this presentation will contain forward-looking statements. If you'd like to know more about those, you can find them on the presentation on the company's website, which I will have updated later today. Unfortunately, I didn't quite get it done for this call, but it should be there this afternoon. With all of that out of the way, and I'm sure you're tired of hearing me talk, I'd like to introduce Cameron Broom, who's going to kick things off to talk about Q3 2020.

Great. Well, thank you very much, Debra. Thanks, Jim and Ken, and thank you, everybody, for taking a lovely August morning to join us for this Q3-related webinar. Apologies in advance. I picked up a bit of a chest bug following the ADLM conference in Chicago, so if I cough a little bit or if Jim and Ken need to take over momentarily, please bear with me. That's what happens when you hang out with 28,000 of your friends that work in clinical labs. You put yourself a little bit out there at risk when it's on demand. So thank you. For Q3, microbics, as you've seen this morning, reported revenues of $5.1 million Canadian. That's comprised of $3.3 million of sales of our antigenics, or test ingredient products a little bit ahead of where we were targeting, and $1.7 million of our test control caps products a little bit behind where we were targeting with a balance of $100,000 there, Ben, comprised of inbound royalties to us. And that compares to total revenues of $5.5 million the prior year. But it's important to note that in the prior year, 1.4 million of the quarter's revenues were comprised of a kinetic-related milestone that was a one-time occurrence. So when we're looking at recurring product sales year-over-year for Q3, they have increased by about 20% year-over-year, so very respectable growth for our industry. Similarly, for the nine months year-to-date, We've achieved revenues of $19.1 million, $4.1 million of which were catalytic-related milestones, and that was comprised of $9.3 million of antigens, $5.3 million of caps, and a balance of over $400,000 of royalties. So, comparatively, that compares to year-to-date revenues the prior year of 2012. was catalytic related. So when we look at our comparability of the year-to-date product sales for the nine months, we're at $15 million in recurring product sales this year versus $10.9 million the prior year. So for growth year-over-year sales growth, recurring sales growth of about 38%. So we consider this to be a very strong growth rate for our recurring product sales and are pleased with that performance. And frankly, we hope you are too. Industry growth in our industry is considerably lower than that rate. So we are strongly outperforming the overall growth of the diagnostic sector based on what we believe are doing the right things in terms of our customer servicing and product development efforts. In terms of margins, overall performance, The gross margin for Q3 was within a satisfactory range at 54%, and that compares to 42% gross margin the prior year. And in Q3 of fiscal 2024, our gross margin was positively influenced by ongoing work that we've undertaken to improve production efficiency, and it was negatively influenced by some write-downs that provisions we took related to sale-dated products CAPS products, which I best describe as BNNs that we could go into. By comparison, gross margins the prior year The growth margin the prior year was buoyed by a kinetic-related milestone that I mentioned earlier and also reduced by a write-down of expired viral transport medium inventory that was provided for in Q3 of fiscal 2023. So, and looking for the nine months, of course, gross margin for the nine months year to date was similarly in a satisfactory range at 63% gross margin for the nine months this year compared to 49% gross margin the prior year. So, again, we're pleased with this performance and certainly hope that you are too as shareholders. At this point, perhaps I can ask Jim Curry to speak a little bit about the balance in P&L, our balance sheet position coming out of the third quarter, and likewise review sources and uses of our cash for the nine-month period. Jim, please go ahead in your off-camera.

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