Xtract One Technologies Inc.

Good day and welcome to the Extract One Technologies fiscal year 2026 fourth 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. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Mark Camarosa, Investor Relations of Extract One. Please go ahead.

Thank you, and good morning everyone. Welcome to Extract One's fiscal 2026 fourth quarter and annual conference call. Joining me today are the company's CEO, Peter Evans, and CFO, Karen Hersh. Today's call will include a discussion of the state of the business, financial results for the quarter and the full year, and the company's priorities for fiscal 2027. followed by a question and answer session with covering analysts. This call is being recorded and will be available on the company's website for replay. The presentation that accompanies today's discussion is also available on the website. Before we begin, I would like to note that all dollars are Canadian unless otherwise specified and to provide a brief disclaimer which is shown on slide two. Today's call contains supplementary financial measures including total contract value of new bookings, agreements pending installation and adjusted EBITDA. These measures do not have standardized means prescribed under IFRS and therefore may not be comparable to similar measures presented by other reporting issuers. They are defined in the company's file, management's discussion and analysis, and a reconciliation of adjusted EBITDA and net loss is included in yesterday's press release and in the appendix to this morning's presentation. Today's call may also contain forward-looking statements that are subject to risks and uncertainties, which could cause actual results, performances, or developments to differ materially from those contained in the statements. These statements are not guarantees of future performance and no assurance can be given that any events anticipated by the forward-looking statements will prove correct. Today's poll should be reviewed together with the company's Audit Consolidated Financial Statements, Management Discussion Analysis, and the Earnings Practice Lease issued October 2026, all which are available on the company's website and under its profile on CDR Plus. Now it's my pleasure to introduce Peter Evans, Chief Executive Officer of Extract One. Peter.

Well, good morning and thank you very much, Mark, and to everyone who's joined us. We welcome all of our investors, our analysts, and everyone else who's joining us today. Let's start with slide number three. Fiscal 2026 was a record year for extract one. Overall revenue of 28.8 million was up 108% from fiscal 2025. We did that while only increasing our operating expenses by 13% overall. adjusted EBITDA improved by 5.1 million for the year to negative 3.5 million for the entire year and our net loss narrowed to $7 million from 11.9 million over the course of the year. We're very pleased with these results and I'd like to talk a little bit more about them and Karen will go into more details also. Let's get to the next slide first though. We consider ourselves and Innovation First Company. And this success has been driven by our two key solutions, which are purpose-built and tailored to address the unique needs and priorities of each market segment that we serve. We are not a one-size-fits-all solution, but one that aligns to the customer's highest priorities of needs. We innovate to deliver each segment's key priorities and have these market-specific, must-have capabilities built into each of the platforms. The Smart Gateway is the right fit where individuals arrive with fewer personal items and where the priority is throughput and small blade detection amongst other items like firearms. We also deliver specific segments, specific features, which then best serves stadiums, arenas, theaters, manufacturing organizations, and hospitals. And most importantly, the international market where edge weapons, not firearms, are the priority. On the other hand, the extract one gateway is purpose-built for medium clutter environments where you have a medium amount of personal items, individuals carrying backpacks, laptops, tablets, phones, and other such items. The previous industry response was extra machines, bag searches, and long lines. The new extract one gateway is a perfect fit for environments like schools, workplaces, and convention centers where the average person is carrying that bag or backpack with that laptop and other items. Each solution also delivers these further unique software capabilities and features that serve each market for their priority needs. Having a product that serves those unique problems for each different buyer is a foundational part of our growing success for this year and for the future. On the smart gateway side, sales were led by customers in healthcare and entertainment spaces here. Hospitals across Canada and the United States chose the smart gateway for the same key reasons. detecting those small blades without alerting on every smartphone, every purse, and other items, while also fitting seamlessly into, for example, an emergency department's very small vestibules. In places like California, the health care systems are buying ahead of the mandated March 2027 weapon screening requirement under Assembly Bill 2975. Other states that we are engaged with are investigating similar sorts of legislation. In the entertainment space, existing customers returned with expansion orders, and we added one of the world's most storied football, as in the global definition of football, clubs, and one of the most iconic and most visited museums in the world, with almost 7 million annual visitors. This museum selected the Smart Gateway for every interest after a very extensive on-site and rigorous testing. For context, the British Museum, for those who are unfamiliar, The British Museum has twice the visitors of Madison Square Garden annually, twice the visitors of the most visited parts of the Smithsonian Institute, and houses the history of mankind. And as such, it's a target for protest and terrorist activities. When organizations like the British Museum prioritize security first, they choose extract one. On the extract one gateway side, we complete our first successful year of commercial rollout and deployments. There has been an incredible uptake in interest from the education space with Extract One Gateway being deployed in a number of school districts and with other schools across five states in the U.S. over phased deployment approaches. In its first full commercial year, the Extract One Gateway accounted for over a third of our revenues and roughly half of our bookings. The logos in this slide are some of the wins that we are approved to name publicly. There are many more customers who would prefer to remain unnamed are just as engaged in our business activities. They take reference calls, they host site visits for prospects, and they recommend us to their peers. At Extract One, it's our philosophy to not believe in customers and only believe in creating advocates for our business model and our solutions we provide. Let's move on to the next slide. I want to take time to talk about the commercial and manufacturing market segments, both of which are becoming an increasingly exciting business opportunity for us. These are not new markets. We've been protecting manufacturing facilities for some of the largest car manufacturers for some time. What changed this year, though, is that the extract one gateway arrived and it fits some exact security and screening needs of many of the commercial customers. Enterprise buyers have a chief security officer, multiple sites and locations. They have rigor around activities like cybersecurity and IT integration, and they have employees who arrive every single morning with a laptop and a bag and other personal items. Extract One Gateway screens them without creating a bottleneck of long waiting lines and bag searches. Office workers just walk into the office building transparently as if there was no screening at all. The Gateway screens them without creating the bottlenecks of those long waiting lines and those bag searches, and this year we found ourselves entering into new markets within the office spaces, such as pharmaceutical manufacturing, with a multi-site deployment that spanned across facilities in California, Arizona, and Ohio, and plans for other locations globally. We're now protecting commercial offices for large insurance, healthcare, data center and technology companies. Additionally, a leading US airline expanded its deployment across three airports for its employees and the Metro Toronto Convention Center as a good example of convention centers selected the extract one gateway for its screening requirements. Commercial customers now represent about a quarter of our bookings this year and a segment that previously had no satisfactory screening solution but pent up demand to create safer environments for the office workers. Let's now look towards our next slide and start to take a look into our fiscal 2027. We have four key operating priorities for the year. First, continued sales expansion with a specific focus on four areas, education, healthcare, commercial and international. These are where we see the largest growth trends and opportunities for our business and we see the strongest solution fit and competitive advantages. Secondly, focused R&D. The extract one gateway is a great example and it was built in response to a problem we heard from customers over and over and over again. What many school superintendents described as solving the air quotes backpack problem. The extract one gateway has solved that problem and that's what gave it a very strong first year of deployment. Our focus this year is the same. Continue to listen to our customers, lead with the innovation that creates differentiated value for them, and solve the problems that matter to them most. The third priority is to continue to deliver on our highly scalable operating model. Hold the growth in our cost below the growth in our revenue. As stated last year, we delivered an operating expense line with an increase of about 13% against revenue growth of 108%. Our focus is to continue to drive this operating leverage into ongoing and sustained profitability. And fourth, but most importantly, customers as advocates. This is a goal that I personally care the most about because this is how we win. A hospital network in one province leads us to a health authority in the next. One school district in Texas strongly advocates to another school district that the solution they deployed last year is the only solution that they should be considering for their deployment. This referenceability from district to district, healthcare organization to healthcare organization creates the advocacy that we want within our business and that is trusted across the security industry. A very happy museum in London that tested every alternative has now become a proactive reference for all the other venues within their network of connections and those individuals are now calling us directly. Our goal this year is to continue to drive strong advocacy from our customers to their peers in every market we serve. With that, I'm going to turn it over to Karen to dig into the financial results in a little more detail. Karen, over to you.