Xtract One Technologies Inc.

Good morning and welcome to the Extract One Technologies fiscal 2026 first quarter earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad, and to withdraw your question, please press star then two. Please note, today's event is being recorded. I would now like to turn the conference over to Chris Witte, Investor Relations Advisor. Please go ahead.

Good morning, everyone, and welcome to Extract One's Fiscal 2026 First Quarter Conference Call. Joining me today is the company's CEO and Director, Peter Evans, and CFO, Karen Hirsch. Today's earnings call will include a discussion about the state of the business, financial results, and some of Extract One's recent milestones, followed by a Q&A session. This call is being recorded and will be available on the company's website for replay purposes. Please see the presentation online that accompanies today's discussion. Before we begin, I would like to note that all dollars are Canadian, unless otherwise specified, and provide a brief disclaimer statement as shown on slide two. Today's call contains supplementary financial measures. These measures do not have any standardized meanings prescribed under IFRS. and therefore may not be comparable to similar measures presented by other reporting issuers. These supplementary financial measures are defined within a company's filed management discussion and analysis. Today's call may also contain forward-looking statements that are subject to risks and uncertainties, which may cause actual results, performance, or developments to differ materially from those contained in the statements that are not guarantees of future performance of the company. No assurance can be given that any of the events anticipated by the forward-looking statements will prove to have been correct. Also, some risks and uncertainties may be out of the control of the company. Today's call should be reviewed along with the company's consolidated financial statements, management's discussion and analysis, and earnings press release issued December 3, 2025, available on the company's website and its CEDAR Plus profile. It is now my pleasure to introduce Peter Evans, the Chief Executive Officer of XTRAC1.

Peter? Well, good morning, Chris. And once again, good morning and welcome to all of our investors and all the analysts joining us today. We're going to start with slide four and provide a little bit of perspective on the business and where we are. It seemed just weeks ago that we reported our Q4 results. And here we are once again to talk a bit about the momentum for the business and specifically the first quarter results for fiscal 2026. What I'm most pleased about overall is that we continue to be on track for a transformational year in fiscal 2026 for the performance with revenue in the first quarter beating the prior year period, and as Karen will review further in a moment, recently increasing our total backlog to a new record of $53 million. What's pleasing to me is the quality of that backlog and the opportunities that have been signed. As we've always seen, sometimes signatures on contracts take a little bit of time, and we might have seen a little bit of top line softness, but we're very pleased with the momentum that's behind that $53 million. We've also seen increasing demand for our extract one gateway, such that approximately half of the bookings in the quarter were from the education mark for the Extract One Gateway. This speaks volumes to us as a business and reaffirms the strategic investment that we made in the One Gateway. As the expanding interest in this groundbreaking application continues to take more and more traction in the marketplace, the product comprises a growing part of our overall backlog to be avoided in this fiscal year. It is due to such demand that we have high confidence in the quarters to come And particularly, as we've previously discussed, why we are ramping up our manufacturing partners' production capacity in order to meet this significantly higher demand that we originally forecast for the product. Building on the strong and accretive momentum of the XTRAC1 gateway, we also continue to secure new smart gateway contracts in a very steady, consistent pace. We recently announced Nova Scotia Healthcare, and we continue to see more and more opportunities like that, which we are engaged in and actively working. These winds further expand our already significant backlog, which continues to be actively deployed. Both the Smart Gateway and X-Track One Gateway offer distinct capabilities that meet the needs of specific market segments and are well aligned with their respective opportunities. This provides balance across our portfolio for further business predictability and differentiated value for each of our customers with products specifically aligned to each vertical market's specific needs. Our phased deployment of larger, longer-term contracts provides us with greater visibility for the remainder of fiscal 2026, knowing how those phased deployments will roll out week over week, month over month, and quarter over quarter than we might have had in previous years. And given the most recent public offering that we just completed, our cash position and balance sheet is at the best shape ever, allowing us to further invest in business development and growth activities and further increase our production for both of our solutions in order to meet the customer demand. We remain on track for continued backlog growth, for continued revenue acceleration, and improved bottom line results as we make continuous progress towards getting to cash flow breakeven in the near term. Let's now turn to slide number five. I'd like to give some additional color on the continued rollout of extract one gateway. The growing interest for X-Track One Gateway is evidenced by a regular and steady set of new bookings for the product. And as I just mentioned, it means a number of things to us. First, it is a testimony to the success of our sales organization who have actually responded to the inquiries and engaged school districts and other customers and provided numerous demonstrations in addressing the business approaches needed. to make sure that we are able to close the deal in a manner that addresses the customer's outcomes and requirements. Once we showcase our technology, we seem to find that there's a strong aggressive movement towards moving to the contract closure. Secondly, the backlog tells me that it underscores the acceptance and demand for our unique capabilities. In other words, potential customers are impressed with what we can offer versus our competitors in the marketplace. And as an interesting anecdote, I had a recent discussion with a school district who moved to a point of discussion based solely on a simple Zoom demo because the obvious benefits were visible to them just by seeing the product versus competitive solutions that require an x-ray system. The capabilities are so obviously aligned to that school's needs that they decided to forego further conversations with any alternatives. Thirdly, what the backlog tells me is it indicates that we as a company are able to commercialize a new system and roll it out while navigating through supply chain constraints that have challenged the marketplace for the entire year. And we'll be able to do new product introductions in a meaningful manner and work closely with our suppliers to ramp up manufacturing to increase delivery of the product in a phased approach so we can match our clients' requirements and increase installations in an efficient, productive manner over succeeding quarters. The interest level, I'm happy to report, is much higher than I initially expected and we as a company initially expected at this point. The schools where we've already deployed are very pleased with the product's efficacy, and we're now turning those schools into very solid, referenceable customers. In addition, we're on track with future installations at these school districts, as well as new educational organizations every single month. Most pleasing to me and the business team is that we have closed approximately $15 million worth of extract one gateway orders in a very, very short period of time. And we have a backlog of almost 100 systems that are pending installation. In addition, the systems already installed previous to this call and previous to this time. Overall, I could not be more pleased with the product rollout and we're on track to have our contract manufacturing expand production capacity further within our fiscal second quarter. which is critical to continue to grow the shipments to our very large and eager customers, and also to strive driving more and more and more revenue growth for the business and meet our operating goals for fiscal 2026. We continue to have over $100 million in our qualified sales pipeline across both of the product lines, and we anticipate that will rise as the year progresses due to ongoing demand trends and the success of our products already on site. and both domestically and internationally. And most importantly, the referenceability of those installed customers to help us gain and close further customers. It's amazing to me how one school board can be very, very successful and very happy with our solution, and they start telling all the other school boards. We're very aware of how these key school districts are ready to move forward with new contracts, and they're watching the deployments of the other schools to validate that indeed we have the model put in place well and we're pleased to say that we do. While the market may slightly slow down to normal seasonal factors related to things like holidays and closures of certain market segments and then reopening, our revenue should rise sequentially and remain on this trend for the latter half of fiscal 2026 as we continue to convert more and more of that backlog, particularly around the one gateways to more installations and more revenue. As I said last quarter, we're at the start of a major step function change for the business in both the scale and size of the company's operations, given our backlog, the increasing demand for our gateway solutions, and the investments we've made over the past year to expand our suppliers' manufacturing capacity and the need to do that once again in this quarter. At this point, I'm going to turn it over to Karen to provide a more detailed discussion of our financial results. Karen, over to you.